Full Text of 2024 Annual Report of Konka Group Co. Ltd.Konka Group Co. Ltd.2024 Annual Report
April 2025
1Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Section I Important Notes Table of Contents and Interpretations
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
authenticity accuracy and completeness of the contents of this Report and its
summary and shall be jointly and severally liable for any misrepresentations
misleading statements or material omissions therein.CAO Shiping the Company's legal representative NIE Yong CFO and
PING Heng the Head of the financial department (Chief Accountant) hereby
declare that they guarantee the financial information in the annual report is
true accurate and complete.All the Company’s directors have attended the board meeting for the
review of this report.Any plans for the future or other forward-looking statements mentioned
in this Report and its summary shall NOT be considered as absolute promises
of the Company to investors. Therefore investors are reminded to exercise
caution when making investment decisions.The Company plans not to distribute cash dividends issue bonus shares
or convert capital reserve into share capital for the year.
2Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Table of Contents
Section I Important Notes Table of Contents and In....2
Section II Company Profile and Financial Indicator... 8
Section III Discussion and Analysis of the Managem.. 13
Section IV Corporate Governance .................... 40
Section V Environmental and Social Responsibilitie...68
Section VI Important Matters ........................80
Section VII Changes in Shares and Shareholders .... 100
Section VIII Preference Shares .....................104
Section IX Bonds .................................. 105
Section X Financial Report ........................ 111
3Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Documents Available for Reference
1. The financial statements with the signatures and seals of the Company’s legal representative
Chief Financial Officer and head of the financial department;
2. The original copy of the Independent Auditor’s Report with the seal of the CPA firm and the
signatures & seals of the certified public accountants;
3. The originals of all the Company’s documents and announcements disclosed to the public in
the Reporting Period;
4. This Report and its summary with the signature of the Company’s legal representative and
the seal of the Company; and
5. Other related information.
4Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Interpretations
Interpretations Refer to Definitions
Company the Company the Group Refer to Konka Group Co. Ltd.Electronic Technology Refer to Shenzhen Konka Electronics Technology Co. Ltd.Haimen Konka Refer to Nantong Haimen Konka Smart Technology Co. Ltd.Chengdu Konka Smart Refer to Chengdu Konka Smart Technology Co. Ltd.Chengdu Konka Electronics Refer to Chengdu Konka Electronics Co. Ltd.Nantong Kangdian Refer to Nantong Kangdian Intelligent Technology Co. Ltd
Shenzhen Kangcheng Refer to Shenzhen Kangcheng Technology Innovation and DevelopmentCo. Ltd.Xiaojia Technology Refer to Xiaojia Technology Co. Ltd.Liaoyang Kangshun Refer to Liaoyang Kangshun Smart Technology Co. Ltd.Liaoyang Kangshun Renewable Refer to Liaoyang Kangshun Renewable Resources Co. Ltd.Nanjing Konka Refer to Nanjing Konka Electronics Co. Ltd.Chuzhou Konka Refer to Chuzhou Konka Precision Intelligent Manufacturing TechnologyCo. Ltd.XingDa HongYe Refer to Guangdong Xingda Hongye Electronics Co. Ltd.Konka Circuit Refer to Shenzhen Konka Circuit Co. Ltd.Konka Soft Electronic Refer to Suining Konka Flexible Electronic Technology Co. Ltd.Konka Hongye Electronics Refer to Suining Konka Hongye Electronics Co. Ltd.Boluo Konka Precision Refer to Boluo Konka Precision Technology Co. Ltd.Boluo Konka Refer to Boluo Konka PCB Co. Ltd.Anhui Tongchuang Refer to Anhui Konka Tongchuang Electrical Appliances Co. Ltd.Jiangsu Konka Smart Refer to Jiangsu Konka Smart Appliance Co. Ltd.Anhui Electrical Appliance Refer to Anhui Konka Electrical Appliance Technology Co. Ltd.Frestec Refrigeration Refer to Henan Frestec Refrigeration Appliance Co. Ltd.Frestec Electrical Appliances Refer to Henan Frestec Electrical Appliances Co. Ltd.Frestec Household Appliances Refer to Henan Frestec Household Appliances Co. Ltd.Frestec Smart Home Refer to Henan Frestec Smart Home Technology Co. Ltd.Konka Investment Refer to Shenzhen Konka Investment Holding Co. Ltd.Yibin Konka Technology Park Refer to Yibin Konka Technology Park Operation Co. Ltd.Konka Capital Refer to Shenzhen Konka Capital Equity Investment Management Co.Ltd.Konka Suiyong Refer to Konka Suiyong Investment (Shenzhen) Co. Ltd.Shengxing Industrial Refer to Shenzhen Konka Shengxing Industrial Co. Ltd.Zhitong Technology Refer to Shenzhen Konka Zhitong Technology Co. Ltd.Konka Electronic Material Refer to Konka Electronic Material Technology (Shenzhen) Co. Ltd.Beijing Konka Electronic Refer to Beijing Konka Electronic Co. Ltd.Tianjin Konka Refer to Tianjin Konka Technology Co. Ltd.Suining Konka Industrial Park Refer to Suining Konka Industrial Park Development Co. Ltd.Suining Electronic Technological Innovation Refer to Suining Konka Electronic Technological Innovation Co. Ltd.Shanghai Konka Refer to Shanghai Konka Industrial Co. Ltd.Yantai Kangjin Refer to Yantai Kangjin Technology Development Co. Ltd.Development of science and technology
industry Refer to Shenzhen Konka Technology Industry Development Co. Ltd.Sichuan Konka Refer to Sichuan Konka Smart Terminal Technology Co. Ltd
Yibin Smart Refer to Yibin Konka Smart Technology Co. Ltd.Shenzhen Konka Semiconductor Refer to Shenzhen Konka Semiconductor Technology Co. Ltd.Chongqing Konka Refer to Chongqing Konka Technology Development Co. Ltd.Kowin Memory (Shenzhen) Refer to Kowin Memory Technology (Shenzhen) Co. Limited
Kowin Memory (Hong Kong) Refer to Kowin Memory Technology (Hong Kong) Co. Limited
Konka Xinyun Semiconductor Refer to Konka ChipCloud Semiconductor Technology (Yancheng) Co.Ltd.Konka Cross-border (Hebei) Refer to Konka Cross-border (Hebei) Technology Development Co. Ltd.Shenzhen Nianhua Refer to Shenzhen Nianhua Enterprise Management Co. Ltd.Konka Central China Refer to Konka Huazhong (Hunan) Technology Co. Ltd.
5Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Wankaida Refer to Shenzhen Wankaida Science and Technology Co. Ltd.Shenzhen Chuangzhi Electrical Appliances Refer to Shenzhen Konka Chuangzhi Electrical Appliances Co. Ltd.Suining Jiarun Property Refer to Suining Jiarun Property Co. Ltd.Anhui Konka Refer to Anhui Konka Electronics Co. Ltd.Kangzhi Trade Refer to Anhui Kangzhi Trade Co. Ltd.Telecommunication Technology Refer to Shenzhen Konka Telecommunications Technology Co. Ltd.Konka Mobility Refer to Konka Mobility Co. Limited
Dongguan Konka Refer to Dongguan Konka Electronics Co. Ltd.Suining Konka Smart Refer to Suining Konka Smart Technology Co. Ltd.Chongqing Optoelectronic Technology Refer to Chongqing Konka Optoelectronic Technology Co. Ltd.Yibin Kangrun Refer to Yibin Kangrun Environmental Technology Co. Ltd.Yibin Kangrun Medical Refer to Yibin Kangrun Medical Waste Centralized Treatment Co. Ltd.Ningbo Kanghanrui Electric Appliances Refer to Ningbo Kanghanrui Electric Appliances Co. Ltd.Jiangxi Konka Refer to Jiangxi Konka New Material Technology Co. Ltd.Jiangxi High Transparent Substrate Refer to Jiangxi High Transparent Substrate Material Technology Co.Ltd.Xinfeng Microcrystalline Refer to Jiangxi Xinfeng Microcrystalline Jade Co. Ltd.Konka Huanjia Refer to Konka Huanjia Environmental Technology Co. Ltd.Konka Huanjia (Henan) Refer to Konka Huanjia (Henan) Environmental Technology Co. Ltd.Shanxi Konka Intelligent Refer to Shaanxi Konka Smart Home Appliance Co. Ltd.Pengrun Technology Refer to Shenzhen Konka Pengrun Technology & Industry Co. Ltd.Jiaxin Technology Refer to Jiaxin Technology Co. Ltd.Konka Ronghe Refer to Konka Ronghe Industrial Technology (Zhejiang) Co. Ltd.Konka Unifortune Refer to Shenzhen Konka Unifortune Technology Co. Ltd.Jiali International Refer to Jiali International (Hong Kong) Limited
Kangjiatong Refer to Sichuan Kangjiatong Technology Co. Ltd.Jiangkang (Shanghai) Technology Refer to Jiangkang (Shanghai) Technology Co. Ltd.Konka Intelligent Manufacturing Refer to Shenzhen Konka Intelligent Manufacturing Technology Co. Ltd.Hainan Konka Technology Refer to Hainan Konka Technology Co. Ltd.Konka Ventures Refer to Konka Ventures Development (Shenzhen) Co. Ltd.Yibin Konka Incubator Refer to Yibin Konka Incubator Management Co. Ltd.Yantai Konka Refer to Yantai Konka Healthcare Enterprise Service Co. Ltd.Chengdu Anren Refer to Chengdu Anren Konka Cultural and Creative IncubatorManagement Co. Ltd.Konka Enterprise Service Refer to Guiyang Konka Enterprise Service Co. Ltd.Ji'an Konka Refer to Ji'an Konka Technology Industry Development Co. Ltd.Konka Europe Refer to Konka (Europe) Co. Ltd.Hong Kong Konka Refer to Hong Kong Konka Co. Ltd.Hongdin Trading Refer to Hongdin International Trading Limited
Konka North America Refer to Konka North America LLC
Kanghao Technology Refer to Kanghao Technology Co. Ltd.Hongdin Investment Refer to Hongdin Invest Development Limited
Chain Kingdom Memory Technologies Refer to Chain Kingdom Memory Technologies Co. Limited
Chain Kingdom Semiconductor (Shaoxing) Refer to Chain Kingdom Semiconductor (Shaoxing) Co. Ltd.Hongjet Refer to Hongjet (Hong Kong) Company Limited
Chongqing Xinyuan Semiconductor Refer to Chongqing Xinyuan Semiconductor Co. Ltd.Anlu Konka Refer to Anlu Konka Industry Operation Service Co. Ltd.Kanghong Dongsheng Refer to Shenzhen Kanghong Dongsheng Investment Partnership(Limited Partnership)
Guizhou Konka New Material Refer to Guizhou Konka New Material Technology Co. Ltd.Shanxi Smart Home Appliance Refer to Konka Smart Home Appliance (Shanxi) Industry DevelopmentCo. Ltd.Guizhou Kanggui Materials Refer to Guizhou Kanggui Material Technology Co. Ltd.Nantong Kanghai Refer to Nantong Kanghai Technology Industry Development Co. Ltd.Chongqing Kangyiyun Refer to Chongqing Kangyiyun Business Operation Management Co.Ltd.Jiangxi Konka High-tech Park Refer to Jiangxi Konka High-tech Park Operation and Management Co.Ltd.
6Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Shangrao Konka Electronic Technology
Innovation Refer to Shangrao Konka Electronic Technology Innovation Co. Ltd.Guizhou Konka New Energy Refer to Guizhou Konka New Energy Material Technology Co. Ltd.Zhejiang Konka Electronic Refer to Zhejiang Konka Electronics Co. Ltd.Zhejiang Konka Technology Industry Refer to Zhejiang Konka Technology Industry Development Co. Ltd.Xi'an Konka Intelligent Refer to Xi'an Konka Intelligent Appliance Co. Ltd.Xi'an Konka Network Refer to Xi'an Konka Network Technology Co. Ltd.Xi'an Kanghong Technology Industry Refer to Xi'an Kanghong Technology Industry Development Co. Ltd.Xi'an Konka Intelligent Technology Refer to Xi'an Konka Intelligent Technology Development Co. Ltd.Anhui Konka Low Carbon Refer to Anhui Konka Low Carbon Technology Co. Ltd.Kanghong Xintong Refer to Shenzhen Kanghong Xintong Investment Partnership (LimitedPartnership)
Songyang Industry Operation Refer to Songyang Konka Smart Industry Operation Management Co.Ltd.Kangyan Technology Refer to Shenzhen Kangyan Technology Co. Ltd.Konka Photovoltaic Technology Refer to Konka Photovoltaic Technology Co. Ltd.Songyang Konka Intelligent Refer to Songyang Konka Intelligent Technology Development Co. Ltd.Konka North China Refer to Konka North China (Tianjin) Technology Co. Ltd.Digital Technology Refer to Shenzhen Konka Digital Technology Development Co. Ltd.China Securities Regulatory Commission Refer to The China Securities Regulatory Commission
Shenzhen Stock Exchange Refer to The Shenzhen Stock Exchange
Shenzhen Securities Regulatory Bureau Refer to The Shenzhen Bureau of the China Securities RegulatoryCommission
RMB RMB 10000 and RMB 100 million Refer to Expressed in the Chinese currency of RMB expressed in tens ofthousands of RMB expressed in hundreds of millions of RMB
7Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Section II Company Profile and Financial Indicators
I. Corporate Information
Stock name Konka Group-A Konka Group-B Stock code 000016 200016
Previous stock name (if any) None
Stock exchange for stock listing The Shenzhen Stock Exchange
Company name in Chinese 康佳集团股份有限公司
Abbr. in Chinese 康佳集团
Company name in English (if
KONKA GROUP CO.LTD
any)
Abbr. in English (if any) KONKA GROUP
Legal representative CAO Shiping
Floor 15-24 Konka R&D Building No. 28 Keji South 12th Road Science and Technology
Registered address
Park Yuehai Street Nanshan District Shenzhen
Postal code of registered address 518057
On July 1 2015 due to the relocation of the Company Headquarters the registered address
Past changes of registered has changed from OCT Nanshan District Shenzhen Guangdong Province China to Floor
address 15-24 Konka R&D Building No. 28 Keji South 12th Road Science and Technology Park
Yuehai Street Nanshan District Shenzhen
Floor 15-24 Konka R&D Building No. 28 Keji South 12th Road Science and Technology
Office address
Park Yuehai Street Nanshan District Shenzhen
Postal code of office address 518057
Company website www.konka.com
Email address szkonka@konka.com
II. Contact Information
Secretary of the Board of Directors Securities Representative
Name LI Chunlei Miao Leiqiang
Secretariat of the Board of Directors 24/F Konka R&D Secretariat of the Board of Directors 24/F Konka R&D
Center 28 Keji South Twelfth Road Science and Center 28 Keji South Twelfth Road Science and
Address
Technology Park Yuehai Street Nanshan District Technology Park Yuehai Street Nanshan District
Shenzhen Guangdong Province Shenzhen Guangdong Province
Tel. 0755-26609138 0755-26609138
Fax 0755-26601139 0755-26601139
szkonka@konka.com szkonka@konka.com
address
III. Media for Information Disclosure and Place where this Report Is Lodged
Stock exchange website where this Report is disclosed Securities Times etc.Media and website where this Report is disclosed Http://www.cninfo.com.cn/new/index
Secretariat of the Board of Directors 24/F Konka R&D
Center 28 Keji South Twelfth Road Science and Technology
Place where this Report is lodged
Park Yuehai Street Nanshan District Shenzhen Guangdong
Province
IV. Changes to Company Registration
Unified social credit code 914403006188155783
Change to principal activity of the Company since going public No change
8Full Text of 2024 Annual Report of Konka Group Co. Ltd.
(if any)
Every change of controlling shareholder since incorporation (if
No change
any)
V. Other Related Information
The independent audit firm hired by the Company:
Name Shinewing Certified Public Accountants LLP
9/F Block A Fuhua Mansion No.8 Chaoyangmen North
Office address
Street Dongcheng District Beijing China
Accountants writing signatures DENG Dengfeng LIU Lihong
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
2024 2023 YoY change 2022
Operating revenue (RMB) 11114763969.59 17849331429.24 -37.73% 29607854255.27
Net profit attributable to the
listed company’s -3295588668.77 -2163790053.17 -52.31% -1470466806.68
shareholders (RMB)
Net profit attributable to the
listed company’s
shareholders before non- -3205504053.63 -2914445076.42 -9.99% -2664607441.54
recurring gains and losses
(RMB)
Net cash generated from/used 173888842.99 553101277.90 -68.56% -528303041.83
in operating activities (RMB)
Basic earnings per share -1.3686 -0.8986 -52.30% -0.6107
(RMB/share)
Diluted earnings per share -1.3686 -0.8986 -52.30% -0.6107
(RMB/share)
Weighted average return on -82.56% -32.58% -49.98% -17.57%
equity
End of 2024 End of 2023 YoY change End of 2022
Total assets (RMB) 30412763900.34 35824818212.66 -15.11% 38023319693.08
Equity attributable to the
listed company’s 2369668838.10 5644401184.65 -58.02% 7641459980.68
shareholders (RMB)
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s
shareholders before and after non-recurring gains and losses was negative for the last three
accounting years and the latest independent auditor’s report indicated that there was uncertainty
9Full Text of 2024 Annual Report of Konka Group Co. Ltd.
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 non-recurring gains and losses was negative.√ Yes □ No
Item 2024 2023 Note
Operating revenue (RMB) 11114763969.59 17849331429.24
Scrap sales revenue utilities
revenue lease revenue
Deductions from operating 602398241.79 712619709.55 material sales revenue and
revenue (RMB)
other revenue irrelevant to the
principal operations
Operating revenue net of 10512365727.80 17136711719.69
deductions (RMB)
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
None.
2. Net Profit and Equity under CAS and foreign accounting standards
□Applicable √ Not applicable
None.VIII. Key Financial Indicators by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 2462543024.65 2949987347.82 2707452109.09 2994781488.03
Net profit attributable to the
listed company’s -510139620.27 -577442222.28 -518498087.73 -1689508738.49
shareholders
Net profit attributable to the
listed company’s
-466504771.56-636573839.16-614340480.96-1488084961.95
shareholders before non-
recurring gains and losses
Net cash generated
from/used in operating -571044205.67 131705840.54 48370919.56 564856288.56
activities
Whether there are significant differences between the above financial indicators or the sum and
the relevant financial indicators in the company's disclosed quarterly reports and semi-annual
reports
□ Yes √ No
10Full Text of 2024 Annual Report of Konka Group Co. Ltd.
IX. Non-recurring Profits or Losses
√ Applicable □ Not applicable
Unit: RMB
Item Amount in 2024 Amount in 2023 Amount in 2022 Note
Profit or losses on disposal of non-current
assets (including the portion offset for 100956248.61 198866019.16 755498679.55
provisions for asset impairment)
Government grants included in the current
profit or loss (except for those that are
closely related to the Company's normal
business operations comply with national
105918680.20264798178.16916334616.72
policies and regulations are enjoyed
according to determined standards and have
a sustained impact on the Company's profit
or loss)
Gain or loss on fair-value changes in
financial assets and liabilities held by a non-
financial enterprise as well as on disposal of
-366040020.57-88236451.43-17595638.89
financial assets and liabilities (exclusive of
the effective portion of hedges that arise in
the Company’s ordinary course of business)
Dispossession surcharge to non-financial
institutions included in the current profit and
loss
Gain/Loss on entrusting others with
investments or asset management
Gain or loss on loan entrustment 92549311.40 118808006.95 119233091.33
Losses on assets resulted from force majeure
factors such as natural disasters
Reversed portions of impairment allowances
for receivables which are tested individually 38227600.55 3055800.22 32624581.58
for impairment
Gains arising from business combination
when the investment cost is less than the
recognized fair value of net assets of the
investee
Current net profit or loss of subsidiaries
acquired in business combination under the
same control from period-beginning to
combination date
Profit/Loss on non-monetary asset swap
Gain or loss on debt restructuring -459737.22 -5378929.04
One-time expenses incurred by an enterprise
because the relevant business activities are
no longer continuous such as the expenditure
of resettling employees
A one-time impact on current earnings
caused by the adjustment of tax accounting
and other laws and regulations
The share-based payment expense that is
11Full Text of 2024 Annual Report of Konka Group Co. Ltd.
recognized in a lump sum due to the
cancellation or modification of the equity
incentive plan
For cash-settled share-based payments the
gain or loss arising from changes in the fair
value of employee compensation payable
after the date of exercise
The profit and loss arising from the change in
fair value of investment real estate measured
subsequently using the fair value model
Gains arising from transactions whose prices
are manifestly unfair
Gains and losses arising from contingent
matters unrelated to the company's normal
business operations
Income from trusteeship fees obtained
through trusteeship
Other non-operating income and expenses
-114510494.06-64433346.64-97161898.46
other than those mentioned above
Other profit and loss items that conform to
571315980.43
the definition of non-recurring profit and loss
Less: income tax impact -23300674.38 239431992.39 299999504.47
Effect on minority interests (after tax) -29973121.57 14087171.21 209414363.46
Total -90084615.14 750655023.25 1194140634.86 --
Particulars about other gains and losses that meet the definition of non-recurring gain/loss:
□ Applicable √ Not applicable
Explanation on the definition of non-recurring profit and loss items as recurrent profit and loss
items in the Explanatory Announcement No. 1 on Information Disclosure of Companies Publicly
Issuing Securities - Non-recurring Profit and Loss Items
√ Applicable □ Not applicable
Amount involved
Item Reason
(RMB)
Government grants which are closely related to the normal business of the company
Tax rebates on 4681629.92 and which are in accordance with national policies and certain standard quota or
software
quantitative amount
12Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Section III Discussion and Analysis of the Management
I. Industry Overview for the Reporting Period
At present the Company's main businesses include consumer electronics and semiconductor
businesses. The relevant industries are described below:
(I) Consumer electronics industry
In terms of the color TV industry since China implemented the policy of trade-in of consumer
goods China's color TV market has entered the channel of medium and high-end competition
upgrading. Statistics from AVC show that in 2024 the retail sales of China's color TV markets were
30.86 million sets down 1.8% YoY but the retail sales were RMB 127.1 billion up 15.7% YoY.
With the continuous development of future display technologies represented by Mini LED and
Micro LED as well as the intelligent upgrade of various electronic products driven by the Internet
of Things (IoT) big data cloud computing and artificial intelligence the development of new TV
categories accelerated in 2024. The penetration rate of new display technologies high refresh rates
and large-size mid-to-high-end products has been increasing. Regarding new display technologies
Mini LED technology entered a phase of rapid popularization in 2024. AVC's statistics show that
the retail penetration rate of China's color TV Mini LED market was 9.8% in 2024 up 5.4% from
2023. In terms of high refresh rates as living standards continue to improve consumers' pursuit of
quality viewing and gaming experiences has become increasingly high. Consequently TVs with
high refresh rates have seen a continuous rise in sales due to their ability to provide superior image
quality. AVC's statistics show that the retail penetration rate of color TVs with refresh rates above
120Hz in China's market was 31.9% in 2024 up 16.4% from 2023. In terms of large size the trend
of large screen in China's color TV market continues and the proportion of sales of products of 75
inches and above has steadily increased. AVC's statistics show that the retail penetration rate of 75-
inch products in China's color TV market was 19.9% in 2024 up 6.4% from 2023.In terms of the white goods industry the pace of product upgrades accelerated in 2024 with
enhancements in basic features and performance. Simultaneously their products are more beautiful
healthy and integrated. This structural upgrade in products has driven the growth in sales of high-
quality home appliances. In terms of refrigerators the statistical data from AVC shows that the
Chinese refrigerator market performed steadily in 2024. The total retail volume across all channels
reached 40.19 million units with a YoY increase of 4.9% and the retail sales amounted to RMB
143.4 billion growing by 7.6% YoY. The proportion of mid-to-high-end products has been
continuously rising. In terms of washing machines statistics from AVC show that the domestic
washing machine market made steady progress in 2024 with omni-channel retail sales of 42.97
million units growing by 7.3% YoY; And the retail sales amounted to RMB 101.4 billion growing
13Full Text of 2024 Annual Report of Konka Group Co. Ltd.
by 7.6% YoY. Aside from the rise in sales volume the average selling price of washing machines
also saw a steady increase. In terms of air conditioners according to the statistical data of AVC in
2024 the annual production of domestic air conditioners in China reached 195.08 million units
with a YoY increase of 19.5%. The total sales volume was 189.77 million units with a YoY increase
of 20.9%. Both the domestic and overseas sales scales of air conditioners have increased.(II) Semiconductor industry
The semiconductor industry is a strategic fundamental and leading industry that supports
economic and social development and safeguards national security. Driven by the development of
5G artificial intelligence the IoT and intelligentialization the semiconductor industry is expected
to usher in a new wave of growth cycles. Among them semiconductor storage is the largest
subdivision in the semiconductor industry in recent years. At present South Korean companies
represented by Samsung and Hynix are in the leading position in the field of semiconductor storage.China has also accelerated in boosting the production capacity of semiconductor storage in recent
years. It is expected that the self-sufficiency rate will continue to increase.Micro LED is the prevailing trend and development direction of future display technology. The
industrial chain is divided into four main links: upstream chip manufacturing and mass transfer
midstream panel manufacturing and downstream complete machine application. The Micro LED
has wide industrial application and a broad market.II. Principal Activity of the Company in the Reporting Period
(I) Consumer electronics business
This division primarily comprises the multimedia sub-division and the white goods sub-
division with details as follows:
1. The multimedia business
The Company's multimedia business faces the global market mainly including domestic color
TV business and export color TV business.The domestic color TV business mainly focuses on two business models: B2B (an abbreviation
for Business-to-Business that is business-to-business) and B2C (an abbreviation for Business-to-
Consumer that is business-to-consumer). Branches business departments and after-sales
maintenance service outlets have been established across the country. The operating profit is
derived from the price difference between the cost of color TV products and their selling prices.As for selling its 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.
2. The white goods business
The white goods produced by the Company mainly include refrigerators washing machines
air conditioners freezers etc. which are sold through B2B and B2C mainly to the domestic market.
14Full Text of 2024 Annual Report of Konka Group Co. Ltd.
The Company profits from the margins between the costs and the selling prices of its white goods.Through the merger and acquisition of the "Frestec" brand the Company strengthened the white
goods brand foundation; By establishing a Ningbo air-conditioning production base through a joint
venture the Company has built up its own air-conditioning manufacturing capabilities; By
acquiring the Chinese factory of Beko (front-loading washing machine) the Company has made up
for the technical shortcomings in front-loading washing machine production; By constructing a new
Xi'an Smart Home Appliance Industrial Park the Company explores and develops the dishwasher
business; In addition the Company is currently optimizing each link of "research production
supply sales and service" internally integrating channel resources externally achieving channel
reuse with the upstream supply side and the downstream channel side and continuously improving
the product sales structure and competitiveness of its white goods business.(II) Semiconductor business
Currently the Company has established a presence in the semiconductor optoelectronics field
with a focus on three major business segments including Micro LED & Mini LED chips mass
transfer and display technology advancing the transformation of its optoelectronics business from
technological R&D to industrialization. After industrialization the Company's operating profits will
be derived from the spread between product costs and sales prices.(III) PCB business
The Company's PCB business primarily focuses on metal substrate products thick copper
products high multi-layer and HDI (high-density interconnect) products and rigid-flex products.Operating under a B2B business model the Company targets four major electronics fields namely
new energy automotive electronics communications & data centers and new consumer electronics.Profitability is achieved through the spread between product costs and sales prices.III. Core Competitiveness Analysis
The Company's core competitiveness lies in its manufacturing ability R&D ability brand
marketing network and human resources. In terms of manufacturing capabilities the Company has
carried out intelligent upgrading and transformation of its production and manufacturing bases in
places such as Anhui Dongguan Xi'an Suining and Xinxiang. Among them the Konka factory in
Anhui has been awarded the title of "National Intelligent Manufacturing Demonstration Factory"
and its intelligent manufacturing level has reached an advanced level in the industry. In terms of
R&D the Company has established a three-level R&D system consisting of "Research Institute +
Key Laboratory + Product R&D Center". It has set up comprehensive AI and IoT laboratories and
5G Ultra HD laboratories in cooperation with major universities or scientific research institutions
and established an academician workstation. The Company has also formed a technology research
alliance that matches its industrial layout. It possesses nearly a hundred core and key technologies a
R&D team of approximately 1400 members and has recruited a hundred industry technical talents
15Full Text of 2024 Annual Report of Konka Group Co. Ltd.
for its Micro LED project. In terms of brand the Company continues to promote brand strategy
construction system construction image construction and cultural construction focuses on
improving the scientific and international image of the enterprise strengthens the brand status has a
certain brand awareness and reputation in the consumer group and has good brand credit in banks
and other financing channels. In terms of marketing channels the Company innovates channel
reform cooperates online and offline for win-win results and strives for development at home and
abroad. In offline channels the Company has 48 branches in provinces and cities across the country
more than 5000 after-sales service stores and its marketing and service network covers the whole
country; Through online channels the Company has settled in e-commerce platforms such as Tmall
JD.com Suning Vipshop Pinduoduo etc. to explore the development of live e-commerce business
and seek new growth poles for business development; In overseas channels the Company's
business covers Latin America Europe Asia-Pacific and other countries and regions and has a
sound marketing network. In terms of human resources the Company boasts a leadership team of
many years of management and industry experience as well as a high quality execution team.IV. Core Business Analysis
1. Overview
In 2024 the Company promoted reform and transformation continued to deepen the strategic
deployment of "one axis two wheels and three engines" actively promoted business restructuring
further promoted special actions such as asset revitalization unified legal entity management and
manufacturing efficiency improvements advanced various production and operation tasks thereby
achieving positive operating cash flows and laying a foundation for the Company's development in
the next stage.In 2024 the Company achieved operating revenue of RMB11.115 billion down 37.73% YoY
and net profit attributable to shareholders of the listed company of RMB-3.296 billion down
52.31% YoY; cash flows from operating activities remained positive.
(1) Reasons for performance changes in 2024
* In 2024 the Company focused on its two main businesses namely consumer electronics
and semiconductors continued to optimize and integrate its business structure. The Company
proactively exited non-core businesses and those with weak empowerment to core businesses and in
a continuous loss state. As a result the Company's revenue saw a certain decline.* In 2023 as the Company disposed of shares in an investee company and recognized the
shares as trading financial assets for accounting approximately a profit of RMB 750 million was
generated; however there was no similar large non-recurring profit in 2024. Therefore the
Company's NPAtS for 2024 decreased YoY.* In 2024 the production efficiency of the Company's color TV business improved and the
product competitiveness gradually increased; however affected by factors such as intensified
16Full Text of 2024 Annual Report of Konka Group Co. Ltd.
market competition continuous fluctuations in the supply chain and limited space for rigid cost
reduction the Company's color TV business continued to face pressure and was still in a loss state.* In 2024 in order to accelerate the industrialization process of semiconductor business the
Company continued to increase investment in the industrialization of MLED (collectively referred
to as Micro LED and Mini LED) and made certain progress in the sales of Mini LED display
products; however as the Company's semiconductor business was still in the early stage of
industrialization it didn't achieved large-scale and efficient output which affected the Company's
profitability.* In 2024 based on the principle of prudence the Company made a provision for impairment
of assets of RMB1.345 billion according to its accounting policies and estimates resulting in a
decrease in profits.* In 2024 the value changes of financial assets measured at fair value held by the Company
and the increase of contingent consideration resulted in the Company's profit or loss from changes
in fair value of about RMB-363 million.
(2) Key tasks for 2024
* Solidly promote the Company's strategic transformation
Under the new development framework of "one axis two wheels and three engines" the
Company held strategic theory-discussing meetings and business seminars in 2024 and conducted
in-depth analysis and systematic planning centered on key issues such as focusing on core business
development and improving operational and management efficiency resulting in the identification
of seven key tasks including "adjusting the layout" and "focusing on breakthroughs" and the
formation of the Implementation Measures for Reform and Development of Konka Group. In 2024
centered on its two main businesses namely consumer electronics and semiconductors the
Company optimized and integrated its business structure and decisively exited non-core businesses
and those with weak empowerment to the core businesses and in a continuous loss state. The
Company clarified a new "1+4+N" management structure redirecting resources to core businesses
such as color TV white goods semiconductors and PCB.* Deepen reform and innovation
The Company promoted asset revitalization through organizational leadership establishing the
"Asset Revitalization Task Force" in 2024. A weekly reporting mechanism was implemented and
over 200 assets were revitalized throughout the year generating cash inflows of more than RMB 1.5
billion. As a result the Company's asset structure was optimized.The Company also innovated its management model by focusing on unified legal entity
management. In 2024 the Company established the "Unified Legal Entity Management Task
Force" to systematically sort out and clarify the 2025 business objectives for the first batch of 27
major legal entities. As a result the Company has completed the restructuring of comprehensive
17Full Text of 2024 Annual Report of Konka Group Co. Ltd.
budgeting monitoring models and business analysis transitioning from the management entity to
the legal entity.The Company drove a positive operational cycle for its production bases through
manufacturing efficiency improvements. In 2024 the Company established the "Manufacturing
Efficiency Improvement Task Force" formulated a manufacturing efficiency improvement plan
and set clear goals for efficiency improvements of its manufacturing bases. In 2024 the Company
made milestone progress in its manufacturing capabilities. Specifically the Frestec refrigerator and
freezer factory completed its relocation and began production; the dishwasher project of Shaanxi
Konka Smart Home Appliance Co. Ltd. was successfully launched; the new manufacturing
platform for drum washing machines of Jiangsu Konka Smart Appliance Co. Ltd. achieved
milestone results; Chengdu Konka Electronics Co. Ltd. implemented various measures to enhance
manufacturing efficiency with production 21% 22% and 40%YoY respectively.The Company leveraged marketing reform to drive market growth. In 2024 it established the
"Marketing Reform Task Force" to improve business travel commission and payment term
management systems while progressively centralizing logistics service and online distribution
platforms. Additionally the Company actively promoted the integration of white goods and brown
goods marketing formulating implementation plans and specific targets for the integration.* Continuously improve the management efficiency
In terms of operational management and control the Company comprehensively sorted out and
reformed decision-making management mechanisms and revised relevant management systems. It
continuously strengthened cash flow budgeting and implementation control adhering to the
overarching principle of "determining expenses and investments based on revenue". Cash outflows
were managed on a ten-day cycle to ensure that the Company's operating cash flows remained
positive in 2024.In terms of cost reduction and expense control the Company implemented the full-process
expense management mechanism and the "3+3" cost reduction measures establishing monthly
budget reviews and specialized controls for expense items. Period expenses for 2024 totaled RMB
2.4 billion down RMB 410 million YoY (-14.44%).
* Continuously improve the industrial capacity
Steady improvement of product efficiency: in 2024 the color TV business successfully
launched flagship products such as A8 and Grand X7 series in mass production. The Company
introduced the Tianjing Mini AI-LED A8 flagship product series achieving the upgrading of
product system; The white goods business has promoted the launch of products such as the 462-liter
series and 500-liter series of cross-four-door flush-mounted refrigerators the brand-new Zhencai
series of washing machines and the 10kg single-washing automatic-dosing washing machine
which has enhanced the product image. The introduction of double-sided aluminum substrate
18Full Text of 2024 Annual Report of Konka Group Co. Ltd.
products into the PCB business made up for the vacancy in double-sided aluminum mass
production and laid a foundation for the adjustment of the Company's product structure.Steady improvement in manufacturing efficiency: in terms of color TV business in 2024 the
comprehensive units per person per hour (UPPH) of Anhui Konka Electronics Co. Ltd. Dongguan
Konka Electronics Co. Ltd. and Chengdu Konka Electronics Co. Ltd. increased by 20.6% 13.3%
and 9.6% YoY respectively; in addition unit manufacturing costs were reduced by 16.6% 3.2%
and 46% YoY and the OEM business scale grew by 47% YoY; In terms of white goods business in
2024 the integrated UPPH value of the manufacturing base increased by 7% YoY and the
manufacturing cost decreased significantly YoY.Steady growth in overseas business: in 2024 the overseas business revenue of white goods
increased by 47% YoY and profits increased by 51% YoY. Among them air conditioner revenue
grew by 85% YoY; washing machine revenue grew by 47% YoY; freezer revenue grew by 130%
YoY; refrigerator revenue grew by 22% YoY. Additionally the dishwasher export business saw
successful shipment; The overseas business of color TVs has acquired 23 new customers and the
self-owned brand business has been launched in Sri Lanka.Steady breakthroughs in scientific research and technology: in 2024 the Company won 4
national awards and 6 provincial and ministerial awards; the color TV business has developed the
110-inch Mini LED A8 PRO TV with 230000 partitions; The high-quality special project of
Chongqing Konka Optoelectronic Technology Co. Ltd. passed the on-site acceptance; The first
batch of -25℃/-40℃ medical freezers developed by Frestec has been approved with the "Medical
Freezer" medical device registration certificate. Meanwhile the combined commercial ultra - low-
temperature cold storage developed based on the inverse Brayton refrigeration technology has been
successfully tested.
2. Revenue and Cost Analysis
(1) Breakdown of operating revenue
Unit: RMB
20242023
As % of
As % of total Change
total
Amount Amount operating (%)
operating
revenue (%)
revenue (%)
Total 11114763969.59 100% 17849331429.24 100% -37.73%
By operating division
Consumer electronics 10136942898.84 91.20% 10204905315.64 57.17% -0.67%
Semiconductor and 170202408.61 1.53% 3397161542.60 19.03% -94.99%
memory chip industry
Other 807618662.14 7.27% 4247264571.00 23.80% -80.98%
By product category
Color TVs 5027758205.02 45.23% 4708450488.99 26.38% 6.78%
White goods 4127243310.93 37.13% 4257423386.71 23.85% -3.06%
Semiconductor and 170202408.61 1.53% 3397161542.60 19.03% -94.99%
19Full Text of 2024 Annual Report of Konka Group Co. Ltd.
memory chip business
PCB business 480868974.92 4.33% 476456155.62 2.67% 0.93%
Others 1308691070.11 11.77% 5009839855.32 28.07% -73.88%
By operating segment
Overseas 7903700862.49 71.11% 10716944822.00 60.04% -26.25%
Domestic 3211063107.10 28.89% 7132386607.24 39.96% -54.98%
By marketing model
Direct sales 5058917673.95 45.52% 5565516534.04 31.18% -9.10%
Distribution 6055846295.64 54.48% 12283814895.20 68.82% -50.70%
(2) Operating Division Product Category Operating Segment or Marketing Model
Contributing over 10% of Operating Revenue or Operating Profit
√ Applicable □ Not applicable
Unit: RMB
YoY
Gross YoY change in
change in YoY change in
Operating revenue Cost of sales profit gross profit
operating cost of sales
margin margin
revenue
By operating division
Consumer 10136942898.84 9697985518.65 4.33% -0.67% -1.55% 0.86%
electronics
By product category
Color TVs 5027758205.02 5002954699.48 0.49% 6.78% 3.91% 2.75%
White goods 4127243310.93 3837066870.14 7.03% -3.06% -1.88% -1.11%
By operating segment
Domestic 7903700862.49 7500439150.67 5.10% -26.25% -28.31% 2.73%
Overseas 3211063107.10 3125596033.23 2.66% -54.98% -54.48% -1.07%
By marketing model
Direct sales 5058917673.95 4704618366.12 7.00% -9.10% -15.08% 6.55%
Distribution 6055846295.64 5921416817.78 2.22% -50.70% -49.77% -1.81%
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 2024 2023 Change (%)
Unit sales 0000 units 912 1070 -14.77%
Consumer
Output 0000 units 912 1080 -15.56%
electronics
Inventory 0000 units 81 81 0.00%
Any over 30% YoYmovements in the data above and reasons
□ Applicable √ Not applicable
(4) Execution progress of major signed sales and purchase contracts in the reporting
period
□Applicable √ Not applicable
20Full Text of 2024 Annual Report of Konka Group Co. Ltd.
(5) Breakdown of cost of sales
By product category
Unit: RMB
20242023
By product As % of As % of total Change
category Item Amount total cost of Amount cost of sales (%)
sales (%) (%)
Color TVs Color TVs 5002954699.48 47.08% 4814813410.02 27.78% 3.91%
White goods White goods 3837066870.14 36.11% 3910767599.72 22.57% -1.88%
Semiconductors Semiconductor
and memory s and memory 256853882.82 2.42% 3433148164.76 19.81% -92.52%
chips chips
PCB business PCB business 428530129.53 4.03% 420480569.60 2.43% 1.91%
Others Others 1100629601.93 10.36% 4749881708.37 27.41% -76.83%
Note
Cost of sales changed accordingly with operating revenue.
(6) Changes in the scope of consolidated financial statements for the reporting period
√ Yes □ No
Registered The Company’s
Name of subsidiary capital interest as at the end Date ofof the reporting change Reason for change(RMB'0000) period (%)
Shenzhen Wankaida Science and Technology
10000.002024-1-22
Co. Ltd.Chengdu Anren Konka Cultural and Creative 500 0.00 2024-4-28
Incubator Management Co. Ltd.Anhui Konka Low Carbon Technology Co. 1500 0.00 2024-6-20
Ltd.De-registration
Shenzhen Kanghong Xintong Investment 10000 0.00 2024-8-9
Partnership (Limited Partnership)
Chengdu Konka Smart Technology Co. Ltd. 5000 0.00 2024-9-24
Konka Photovoltaic Technology Co. Ltd. 15000 0.00 2024-11-14
Guizhou Konka New Energy Material
100000.002024-12-9
Technology Co. Ltd.Boluo Konka PCB Co. Ltd. 4000 0.00 2024-12-26 Merger by absorption
Konka Huanjia Environmental Technology 18000 51% 2024-3-15
Co. Ltd. Entry to bankruptcy
Konka Huanjia (Henan) Environmental liquidation procedures10000 51% 2024-3-15
Technology Co. Ltd.
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting
Period
□Applicable √ Not applicable
(8) Major Customers and Suppliers
Major customers:
Total sales to top five customers (RMB) 3509777615.12
Total sales to top five customers as % of total sales of the 31.58%
21Full Text of 2024 Annual Report of Konka Group Co. Ltd.
reporting period (%)
Total sales to related parties among top five customers as % of 0.00%
total sales of the reporting period (%)
Top five customers
Sales revenue contributed for As % of total sales revenue
No. Customer
the Reporting Period (RMB) (%)
1 Customer A 1831921038.38 16.48%
2 Customer B 851049761.92 7.66%
3 Customer C 473013307.18 4.26%
4 Customer D 183783749.11 1.65%
5 Customer E 170009758.53 1.53%
Total -- 3509777615.12 31.58%
Other information about major customers
√ Applicable □ Not applicable
None of the top five customers were related parties of the Company. None of the Company’s
directors supervisors executive officers core technicians over 5% shareholders De Facto
Controller or any other related parties held equity interests in the major customers directly or
indirectly.Major suppliers:
Total purchases from top five suppliers (RMB) 3229325957.39
Total purchases from top five suppliers as % of total purchases 31.85%
of the reporting period (%)
Total purchases from related parties among top five suppliers 0.00%
as % of total purchases of the reporting period (%)
Top five suppliers:
Purchase in the Reporting
No. Supplier As % of total purchases (%)
Period (RMB)
1 Supplier A 2220792621.16 21.91%
2 Supplier B 302987168.12 2.99%
3 Supplier C 268096638.28 2.64%
4 Supplier D 224521122.87 2.21%
5 Supplier E 212928406.96 2.10%
Total -- 3229325957.39 31.85%
Other information about major suppliers
√ Applicable □ Not applicable
None of the top five customers were related parties of the Company. None of the Company’s
directors supervisors executive officers core technicians over 5% shareholders De Facto
Controller or any other related parties held equity interests in the major customers directly or
indirectly.
3. Expense
Unit: RMB
22Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Reason for any
2024 2023 Change (%)
significant change
Selling expense 774298036.87 965070146.99 -19.77%
Administrative expense 651947833.46 807527910.20 -19.27%
Finance costs 581022498.12 562016110.24 3.38%
R&D expense 416405840.34 497993759.86 -16.38%
4. R&D Investments
√ Applicable □ Not applicable
Names of main R&D Objectives to be Expected impact on the
Project objectives Project progress
projects achieved Company
While realizing 8K
Research on 8K UHD
UHD decoding on the
core technology image
R&D of 8K UHD The core technology product it also realizes
quality enhancement Improve product
platform based on self- has been applied to the functions such as
technology and pixel- competitiveness.developed chip product. image quality
level optical engine
enhancement and
technology.precise light control.Research on ultra-thin
and ultra-high partition Create ultra-thin Mini
R&D of ultra-high Mini LED backlight LED backlit TVs with
Related products have Launch products that
partition Mini LED technology and partitions at the levels
been launched. meet market demand.wallpaper TV develop multiple types of hundreds thousands
of Mini LED backlight and tens of thousands.TVs.Research on High-end Increase the market Increase the market
Increase the market
Glass Door share of cross-shaped share of cross-shaped
share of the Company's
Sterilization Flat- four-door high-end Completed. four-door high-end
products and enhance
mounted Cross Four- products in the offline products in the offline
the brand image.door Refrigerator market market.Meet the needs of mid- Expand the market
Increase the market
R&D of air-cooled end large-sized two- share of products and
share of large two-door
energy-saving large door and large-sized Completed. enhance the overall
frozen products in the
two-door refrigerator frozen products in the brand image of the
offline market.offline market Company.Enhance the
Company's huge
Micro LED technology
Micro LED laser Achieve the technical transfer technology
achieves breakthrough The acceptance has
transfer verification indicators of mass capabilities and expand
with a huge transfer of been completed.project transfer and repair. the Company's
technical indicators.influence in the
industry.Develop high-tech and
high value-added
R&D of manufacturing R&D has been Improve the
products in industrial
process of thick copper completed and is Increase sales revenue Company's overall
control and other
sandwich aluminum currently in low- and profit. R&D level industry
application fields to
substrate volume production. status and influence.increase the Company's
operating profit.Obtain control
R&D of high multi- technology patents
Further improve
layer precision thick production
process technology and Trial production stage. Open up new markets.copper plate circuit technologies and
open up new markets.board process parameters
and obtain technical
23Full Text of 2024 Annual Report of Konka Group Co. Ltd.
methods with
independent
intellectual property
rights.R&D of Mini LED
Carry out R&D and Achieve technical Improve the
application based on
technical reserves to indicators and increase Company's product
high multi-layer Trial production stage.improve product sales revenue and competitiveness and
precision circuit board
competitiveness. profits. industry position.technology
Details about R&D personnel
2024 2023 Change (%)
Number of R&D personnel 1422 1479 -3.85%
R&D personnel as % of total
10.65%10.48%0.17%
employees
Educational background of R&D personnel
Bachelor 1321 1349 -2.08%
Master’s degree 96 124 -22.58%
Doctoral degree 5 6 -16.67%
Age structure of R&D personnel
Below 30 651 695 -6.33%
30-40 years old 569 551 3.27%
Over 40 202 233 -13.30%
Details about R&D investments
2024 2023 Change (%)
R&D investments (RMB) 416405840.34 497993759.86 -16.38%
R&D investments as % of operating
3.75%2.79%0.96%
revenue
Capitalized R&D investments (RMB) 0.00 0.00 0.00%
Capitalized R&D investments as % of total
0.00%0.00%0.00%
R&D investments
Reason for any significant change in R&D personnel composition and the impact:
□ Applicable √ Not applicable
Reasons for any significant YoY change in the percentage of R&D investments in operating
revenue:
□ Applicable √ Not applicable
Reason for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable √ Not applicable
5. Cash Flows
Unit: RMB
Item 2024 2023 Change (%)
Subtotal of cash generated from
11193611750.4218703945979.20-40.15%
operating activities
Subtotal of cash used in operating
11019722907.4318150844701.30-39.29%
activities
Net cash generated from/used in 173888842.99 553101277.90 -68.56%
24Full Text of 2024 Annual Report of Konka Group Co. Ltd.
operating activities
Subtotal of cash generated from
725004698.102481589961.16-70.78%
investing activities
Subtotal of cash used in investing
756209896.132013333188.02-62.44%
activities
Net cash generated from/used in
-31205198.03468256773.14-106.66%
investing activities
Subtotal of cash generated from
12647798297.7211690214069.698.19%
financing activities
Subtotal of cash used in financing
15690719013.1112521398097.4025.31%
activities
Net cash generated from/used in
-3042920715.39-831184027.71-266.09%
financing activities
Net increase in cash and cash
-2891606873.10212872338.65-1458.38%
equivalents
Main influencing factors for significant YoY changes in relevant data
√ Applicable □ Not applicable
Reasons for the change in net cash flows from operating activities: the sales payment
collection scale of the Company during the reporting period has narrowed YoY and the
government grants received during this period have decreased.Reasons for the change in net cash flows from financing activities: the cash paid by the
Company to repay debts in the reporting period increased compared with the same period of the
previous year.Reason for any big difference between the net operating cash flow and the net profit for this
Reporting Period:
□ Applicable √ Not applicable
V. Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
Amount As % of total profit Forming reason Recurrent or not
Return on -40606278.44 1.06% Not
investment
Mainly the change in the fair value of
Gain/loss on changes -363008154.15 9.52% financial assets and the increase of Not
in fair value
contingent consideration
Asset impairments -1345168787.27 35.26%
Mainly the impairment of receivable
Not
inventories and equity investment
Mainly the increase in gains not
Non-operating 36502107.29 -0.96% directly related to the daily business Not
revenue
activities of the Company
Mainly the increase in losses not
Non-operating 165575114.70 -4.34% directly related to the daily business Not
expense
activities of the Company
25Full Text of 2024 Annual Report of Konka Group Co. Ltd.
VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
End of 2024 Beginning of 2024 Reason
Change in for any
As % of total As % of total percentage signific
Amount Amount
assets assets (%) ant
change
Monetary 4115767247.73 13.53% 6506359577.02 18.16% -4.63%
assets
Accounts 1458923066.70 4.80% 1726545973.08 4.82% -0.02%
receivable
Contract assets 2630508.60 0.01% 2190385.93 0.01% 0.00%
Inventories 2694648186.93 8.86% 3249897700.98 9.07% -0.21%
Investment 1650843239.51 5.43% 1470226723.87 4.10% 1.33%
property
Long-term
equity 4728360853.49 15.55% 5566483863.29 15.54% 0.01%
investments
Fixed Assets 5005836928.31 16.46% 5218297745.16 14.57% 1.89%
Construction in 873042499.04 2.87% 860899498.68 2.40% 0.47%
progress
Right-of-use 178185679.35 0.59% 197054423.17 0.55% 0.04%
assets
Short-term 5741171468.26 18.88% 6390592056.27 17.84% 1.04%
borrowings
Contract 623555669.97 2.05% 527975160.12 1.47% 0.58%
liabilities
Long-term 5530649801.93 18.19% 7779150079.88 21.71% -3.52%
borrowing
Lease liabilities 146561588.52 0.48% 160218818.92 0.45% 0.03%
Indicate whether overseas assets account for a larger proportion of the total assets.□ Applicable √ Not applicable
2. Assets and liabilities at fair value
√ Applicable □ Not applicable
Unit: RMB
Impairment Purchased
Cumulative fair-
Gain/loss on fair- allowance in the Sold in the Other
Beginning value changes
Item value changes in for the reporting reporting period chang Ending amount
amount charged to
the reporting period Reporting period Amount es
equity
Period Amount
Financial assets
1. Trading
financial assets
4696367
(derivative 00.78 -141227271.44 41761300.00 286648129.34
financial assets
excluded)
26Full Text of 2024 Annual Report of Konka Group Co. Ltd.
2. Derivative
financial assets
3. Investments in
other debt
obligations
4. Investments in
2384133
other equity 7.16 7726405.16 16114932.00
instruments
5. Other non-
2009676 -184923826.49 1400000.0current financial 398.00 0 23742683.62
1802409887.
89
assets
Subtotal of 2503154 -326151097.93 1400000.0 73230388.78 2105172949.financial assets 435.94 0 23
Investment
property
Productive living
assets
173396363943324.
Others 26.14 53 173396326.14 0.00 63943324.53
2676550 -326151097.93 65343324. 246626714.92 0.00 2169116273.Total of the above 762.08 53 76
Financial
liabilities
Contents of other changes
Gain/loss on fair- Impairment
value changes in Cumulative fair-value allowanceItem Beginning amount the reporting changes charged to equity for the
Purchased in the Sold in the Other Ending amount
period Reporting
reporting period reporting period changes
Period
Receivables
financing 173396326.14 63943324.53173396326.14 63943324.53
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes √ No
3. Restricted Asset Rights as at the Period-End
Item Ending book value Reason for restriction
(RMB)
Among them 556608881.87 yuan is a deposit for guarantee pledged for borrowing or
Monetary
1332589771.28 opening bank acceptance bills; 567478893.23 yuan is a time deposit that cannot bewithdrawn in advance pledged for borrowing; 208501996.18 yuan is restricted for other
assets reasons.Accounts
1798852.71 Pledge loan
receivable
Notes
15900000.00 In pledge for the issuance of bank acceptance bill
receivable
Inventories 379790291.96 As collateral for loan
Investment
712454010.27 As collateral for loan
property
Fixed Assets 1551889522.63 As collateral for finance lease loan and former shareholder guarantee
Intangible
587351084.33 Mortgage and mortgage borrowings under finance lease
Assets
27Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Total 4581773533.18
VII Investments Analysis
1. Total Investment Amount
√ Applicable □ Not applicable
Amount of the same period of last year
Amount of Reporting Period (RMB) Change (%)
(RMB)
621882495.131483759951.04-58.09%
2. Major equity investments made in the reporting period
□Applicable √ Not applicable
3. Major non-equity investments ongoing in the reporting period
√ Applicable □ Not applicable
Unit: RMB
Reason
Input Accumulati
Accumul
Inves Fixed ative
for not
tment assets Industry amount in
ve actual meeting
Item the input
Capital
resource Project Estimated
realized the Disclosur Disclosur
meth investme involved amount as progress revenues revenues schedule e date (if e index
od nt or not Reporting s as of the any) (if any)Period of the andperiod-end period-end expectedrevenues
Suining
Konka
Not
Electronic Self- Electroni 3814939 59907633 Self- October
Yes applicabl
Technology build c industry 4.04 7.80 funded 17 2018
e
Industrial
Park
Chongqing Http://w
Konka Self- ww.cninf
o.com.cn/
Semiconduct and Not new/inde
Self- Electroni 4717254 70643068 June 14
or Yes bank applicabl x
build c industry 8.96 9.12 2019
Photoelectric loan- e
Industrial funded
Park
Self-
Frestec and Not
Self- Electroni 1019380 56138364 July 21
Refrigeration Yes 87.58 8.65 bank applicablbuild c industry 2020
Park loan- e
funded
Total -- -- -- 1872600 1866890630.58 75.57 -- -- -- -- --
Remark: Suining Konka Electronic Technology Industrial Park and Frestec Refrigeration
Industrial Park are under construction; The first-phase infrastructure construction of the project of
the Semiconductor Optoelectronics Research Institute in Chongqing Konka Semiconductor
Optoelectronics Industrial Park has been completed and passed the acceptance inspection and the
construction of the remaining parts of the infrastructure project is underway.
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
Unit: RMB
28Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Cumulat
Accountin Gain/loss on Gain or
ive fair- Purchase Sold in
Variety Initial g Beginni fair-value loss in Ending Capital
Tick Compan value d in the the Accountin
of investm measurem ng book changes in the book resourc
er y name changes reportin reportin g title
security ent cost ent value the reporting reportin value es
charged g period g period
method period g period
to equity
Domesti Measured Trading
003 Chutian 195283 469636 - 417613 - 2866481 Self-
c/Foreig
040 Dragon 634.00
at fair 700.78 141227271 222709 financial
n stock value .44
00.00 72.63 29.34 fundedassets
Other securities investments
-------
held at the period-end
195283469636-417613-2866481
Total 634.00 -- 700.78 141227271.44 00.00
222709
72.6329.34
----
Disclosure date of announcement on board’s approving securities
April 4 2023
investment (if any)
Disclosure date of announcement on shareholders’ meeting approving
Not applicable
securities investment (if any)
(2) Investments in Derivative Financial Instruments
□Applicable √ Not applicable
None.
5. Use of raised funds
√ Applicable □ Not applicable
(1) Overall use of raised funds
√ Applicable □ Not applicable
Unit: RMB'0000
Total
Total Proportion of
Total raised Proportion Amount
raised use of raised
Net used funds Total raised of total Total Purpose and of raised
Listing Total funds funds at the
Year of Method of amount total changed funds with raised unused whereabouts funds idle
date of raised used in end of the
fundraising fundraising of raised raised in use changes in funds with raised of unused for more
securities funds the reporting
funds (1) funds during the use changes in funds raised funds than two
current period (3) =
(2) reporting use years
period (2)/(1)
period
Non-public
issuance of January Not
2024150000149520150000150000100.32%000.00%00
corporate 29 2024 applicable
bonds
Non-public
issuance of March Not
202440000398724000040000100.32%000.00%00
corporate 18 2024 applicable
bonds
Non-public
issuance of March Not
202440000398724000040000100.32%000.00%00
corporate 18 2024 applicable
bonds
Total -- -- 230000 229264 230000 230000 100.32% 0 0 0.00% 0 -- 0
Description of overall use of raised funds
1. The non-public issuance of corporate bonds (Phase I) by Konka Group Co. Ltd. to professional investors in 2024 was completed on January 29 2024 and the raised funds have been used up during the reporting
period. The Company used the raised funds in strict accordance with the agreed purposes of the bond prospectus and the special account for raised funds operated well;
2. The non-public issuance of corporate bonds (Phase II) (variety II) by Konka Group Co. Ltd. to professional investors in 2024 was completed on March 18 2024 and the raised funds have been used up during the
reporting period. The Company used the raised funds in strict accordance with the agreed purposes of the bond prospectus and the special account for raised funds operated well;
3. The non-public issuance of corporate bonds (Phase II) (variety II) by Konka Group Co. Ltd. to professional investors in 2024 was completed on March 18 2024 and the raised funds have been used up during the
reporting period. The Company used the raised funds in strict accordance with the agreed purposes of the bond prospectus and the special account for raised funds operated well.
29Full Text of 2024 Annual Report of Konka Group Co. Ltd.
(2) Committed projects of raised funds
□Applicable √ Not applicable
(3) Project changes of raised funds
□Applicable √ Not applicable
There were no changes in raised funds during the reporting period of the Company.VIII. Sale of Major Assets and Equity Interests
1. Sale of major assets
□Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of major equity interests
□Applicable √ Not applicable
IX. Major Subsidiaries
√ Applicable □ Not applicable
Major fully/majority-owned subsidiaries and those minority-owned subsidiaries with an over
10% effect on the Company’s net profit
Unit: RMB
Relationship
Name with the Principal Registeredactivity capital Total assets Net assets
Operating Operating
revenue profit Net profitCompany
Henan Frestec Smart Production and
Home Technology Subsidiaries sales ofelectronic RMB200000000 1028490694.30 214152625.59 609354797.72 1764337.56 1288763.83Co. Ltd. products
Import and
Hong Kong Konka export of
Co. Ltd. Subsidiaries electronic HKD500000 2969595074.50 439204538.42 2456769167.00 4646450.41 -417219.22
products
Subsidiaries obtained or disposed of in the reporting period
√ Applicable □ Not applicable
Subsidiaries obtained or disposed of Effects on overall operations and
Name
in the reporting period operating performance
Shenzhen Wankaida Science and Technology De-registration
Co. Ltd.Chengdu Anren Konka Cultural and Creative De-registration
Incubator Management Co. Ltd.Anhui Konka Low Carbon Technology Co. De-registration
Ltd.Shenzhen Kanghong Xintong Investment De-registration
Partnership (Limited Partnership)
Chengdu Konka Smart Technology Co. Ltd. De-registration For better allocation of assets
Konka Photovoltaic Technology Co. Ltd. De-registration
Guizhou Konka New Energy Material De-registration
Technology Co. Ltd.Boluo Konka PCB Co. Ltd. Merger by absorption
Konka Huanjia Environmental Technology Co. Bankruptcy and liquidation
Ltd.Konka Huanjia (Henan) Environmental Bankruptcy and liquidation
Technology Co. Ltd.
30Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Information about principal subsidiaries and joint stock companies:
None
X Structured Bodies Controlled by the Company
□Applicable √ Not applicable
XI. Prospect of the Company’s Future Development
In 2025 the Company will adhere to the leadership of party building continue to thoroughly
implement the new development strategy of "one axis two wheels and three drives" make good use
of four special task forces: unified legal management asset revitalization marketing integration and
manufacturing efficiency improvement comprehensively promote the five reforms promote the
implementation of key tasks of "six focuses" and ensure that the operating performance in 2025 is
significantly improved.(I) Make good use of four types of special task forces to drive reform and tackle key problems
1. Take the unification of legal management as the starting point to focus on business
improvement
The first batch of 27 legal entities of the Company signed the business mission statement for
2025 at the end of 2024. The Company will fully implement the performance assessment
mechanism for all employees promote the assessment to cover all participating enterprises and
further promote the reduction of enterprises with more than three management levels.
2. Take asset revitalization as the starting point to grasp cash return
In 2025 the Company will advance its asset revitalization efforts under the principle of
"revitalizing all available maximizing collateral utilization selling all eligible and clearing all
necessary" further promote the operational mechanism characterized by headquarters overseeing
the overall plan specialized task forces activating assets on a category basis business segments
implementing actions on an item basis and accelerating breakthroughs of key projects. The
Company will lock in annual targets innovate activation methods and accelerate fund recovery
through diversified measures.
3. Take marketing integration as the starting point to improve efficiency
Firstly expand overseas markets. First of all the Company will optimize its business model
build overseas business stations and build a localized marketing organization; Secondly the
Company will strengthen the group going overseas implement systematic operations and promote
the reuse of multi-category channels; Finally the Company will focus on the core market establish
business bases select key target markets such as North America Latin America Japan and Russia
give full play to the advantages of regions customers and brands to promote each other and
strengthen product capabilities delivery capabilities and quality control capabilities.Secondly domestic integration and platform empowerment. The Company will focus on black-
and-white goods integration grasp capacity coordination and optimize resource allocation. For
31Full Text of 2024 Annual Report of Konka Group Co. Ltd.
offline business in terms of logistics services distribution platforms etc. the Company will
actively explore new models of integration and efficiency improvement and build one-stop service
capabilities for customers and users. The e-commerce business will strengthen the building of brand
official flag attach importance to the coordination of operational resources and the improvement of
operational capabilities and realize mutual empowerment of multiple categories to learn from each
other.
4. Take manufacturing efficiency improvement as the starting point and focus on cost
competitiveness
Firstly optimize the production base and remove excess capacity. The Company will actively
explore the production line contracting model and concentrate orders to factories with high
production efficiency good cost control and stable quality. Secondly strengthen production and
marketing coordination and improve manufacturing efficiency. The Company will open up black-
and-white goods OEM and overseas business customer platforms to effectively match production
capacity and demand manufacturing and marketing production plans and materials. Thirdly
strengthen process innovation and benchmark the first-class industry. The Company will tackle
bottleneck station processes to improve process stability. Fourthly strengthen management
innovation and echelon construction. The Company will optimize the production line management
level strengthen the precipitation and reuse of R&D and manufacturing talents and improve the
production stability of the production line. Fifthly deepen lean cost reduction and enhance
competitive advantage. The Company will reasonably plan the use efficiency of the park promote
the standardization of processes and parts and reduce procurement costs.(II) Adhere to the five-point reform and promote quality and efficiency improvement
1. Build a professional and efficient headquarters management and control system
Firstly combine full authorization with effective management: in line with the business
operation needs further expand the scope of authorization. At the same time strengthen the
management of authorization approval. For the authorized matters implement the responsibility
system with the business units taking the main responsibility and for the matters subject to approval
by the Company's headquarters implement the responsibility system with the competent functional
departments taking the main responsibility. Secondly strengthen the financial management system:
take the full launch of the financial sharing center and the construction of the treasury system as an
opportunity to promote full-level and sub-penetrating standardized financial supervision. At the
same time based on the unification of legal management and the dual-responsibility field system of
product lines provide refined precise and lean financial accounting support. Thirdly improve the
compliance management system: continuously improve and strengthen the construction of
compliance management working mechanism and management system enhance the penetration of
compliance culture cultivation further promote legal and compliance operation and management
32Full Text of 2024 Annual Report of Konka Group Co. Ltd.
and keep the bottom line of compliance operation. Fourthly reshape the work safety management
system: focus on the eight elements of work safety standardization improve the nine work safety
management systems take standardization as the management norm solidly promote the work of
"strengthening the foundation" of work safety consolidate the foundation of work safety and
comprehensively strengthen process management.
2. Establish an operation responsibility system with one post and two responsibilities
For core product lines such as color TVs refrigerators washing machines air conditioners
and dishwashers the product line leaders concurrently serve as heads of corresponding legal entities.The Company ensures that these leaders will be accountable for the operation of their legal entities
operating independently and assuming profit-and-loss accountability while being responsible for
the overall performance of their product lines. In addition the Company drives horizontal
integration across product lines breaking down coordination barriers between multiple legal entities
brands and distribution channels promoting overall product planning overall capacity allocation
unified brand image and a coordinated marketing strategy.
3. Construct a value-oriented assessment and evaluation system
The Company will deepen the implementation of the Three System Reforms establishing a
quantified assessment and evaluation framework to enhance the functionality of assessment
indicators. The Company will also refine the assessment incentive system by aligning with product
innovation technological innovation and production efficiency improvements. Assessment reward
distribution will be closely linked to the innovation achievement's market value technological
complexity and overall contribution to the Company and will focus on areas such as breakthroughs
in critical technical bottlenecks and the development of new market-disruptive products so as to
further strengthen the application of assessment and evaluation results and give full play to the
guiding role of assessments.
4. Build a result-oriented all-round innovation system
The Company will revise the innovation incentive measures to cover more fields and reward in
combination with economic contributions to promote all-round innovation covering products
supply chain manufacturing marketing service and management so as to ensure that innovation is
selective and targeted and innovation results can be quantified evaluated and incentivized.
5. Establish a "zero tolerance" quality management system
The Company firmly establishes the awareness of "quality as the lifeline". Firstly promote the
reform of the quality system around the physical quality of products and the perceived quality of
users; Secondly benchmark the production safety management mechanism establish a complete
product quality management mechanism compact the main responsibility and assign the
responsibility to the person; Thirdly change the organization mode of quality management do a
good job in the coordination between product quality cost and delivery through the large product
33Full Text of 2024 Annual Report of Konka Group Co. Ltd.
manager mechanism improve the professional ability of the quality team and build a quality
management team with clear responsibilities and rights and strong professional ability; Fourthly
benchmark advanced products build an applicable and effective quality standard management
mechanism and lead the improvement of product quality with standards.(III) Adhere to deepening the six focuses and accelerate the implementation of transformation
1. Focus on risk prevention and control to ensure the stable operation of the enterprise
Firstly continuously improve cash flows. The Company will focus its resources on businesses
that contribute to positive cash flow from operations. It will strengthen the management of
procurement sales inventory the management of payment terms and credit limits as well as the
management of overdue accounts receivable. It will continuously improve the Company's operating
cash flow strictly control the investment rhythm increase the efforts in revitalizing assets conduct
key follow-up on special tasks and ensure a stable inflow of investment cash flow.Secondly build a dual prevention mechanism and reshape the work safety management system.The Company will establish and improve the dual prevention mechanism of safety risk hierarchical
management and control and hidden danger investigation and management establish a hidden
danger list ledger ensure the dynamic clearing of hidden dangers focus on accelerating the
rectification of historical safety problems clarify the timetable roadmap and promote the
implementation of rectification plans item by item.
2. Focus on No. 1 product and improve product gross profit contribution
The Company will strengthen the awareness of high-quality products and the thinking of
popular products ensure that the No.1 product is built into the main source of profit contribution
and an important guarantee for business improvement and lay a solid product foundation for
business improvement. The Company will strengthen organizational support and clarify planning
objectives. Each category will take the No. 1 product project as the traction clarify the working
mechanism and support measures form a continuous closed loop of work and ensure the
achievement of planning objectives.
3. Focus on six synergies to strengthen professional ability improvement
The Company will strengthen the coordination of supply chain products manufacturing
brands marketing and services of each business unit and promote the improvement of specialized
capabilities of each category. For supply chain collaboration it is mainly to create a full-link
collaborative supply chain to promote cost reduction shorten delivery cycle and maximize overall
benefits; For the coordination of products it is mainly to realize the coordination and integration of
black and white goods the coordination of products of Frestec and Konka within white goods the
cooperation of products of various legal entities markets at all levels domestic and foreign
products and the coordination of internal product lines from design development production
iteration and other links; For manufacturing collaboration it is mainly to do a good job in product
34Full Text of 2024 Annual Report of Konka Group Co. Ltd.
production capacity off-peak season workers management experience and other aspects of
collaboration between multiple production bases. The factory focuses on all aspects of production
and manufacturing strengthens effective collaboration internally and between upstream and
downstream ensures smooth production timely supply and improves order delivery rate and
production efficiency; For brand collaboration it is mainly to do a good job in dual-brand
collaboration between Konka and Frestec promote the consistency of multi-category tonality and
promote joint marketing to enhance brand influence and maximize brand value; For marketing
collaboration it is mainly to share customers coordinate promotion maximize reuse strengthen the
action unity of marketing channels achieve customer experience consistency and improve channel
efficiency and benefit through the integration of black and white goods; For service collaboration it
is mainly to share service resources in after-sales logistics technical support applet platform etc.and deal with customer problems collaboratively to achieve service consistency.
4. Focus on lean management to improve the quality of business operations
First strive for efficiency and benefits though cost control. The main tasks include
strengthening the coordination mechanism of functional departments implementing professional
and refined control over key expense accounts optimizing the approval processes for various types
of expenses and accelerating the reduction of expenses unrelated to the core business. Second
strive for efficiency and benefits through cost reduction. The main tasks include continuously
optimizing costs through measures such as reducing manufacturing costs by standardizing products
and minimizing operational losses by improving the turnover efficiency. Third strive for efficiency
and benefits in manufacturing. The main tasks include strengthening the optimization of
manufacturing costs improving the quality of product delivery ensuring the timeliness of product
delivery enhancing cost-effectiveness labor productivity first pass yield (FPY) and yield rate as
well as indicators of the manufacturing system such as the UPPH (units per person per hour) value
enhancing the introduction of new materials new manufacturing processes and new methods and
unleashing the creativity and motivation of the team.
5. Focus on scientific and technological innovation and accelerate breakthroughs in core
technologies
First adhere to investment in research and development. First the Company will focus on the
industry base itself on its products make progressive and continuously iterative arrangements for
scientific research and invest in related expenses. It will develop scientific and technological
innovations and invention patents with originality and first-mover advantages and strong value
realization capabilities. The industrial transformation will reflect immediacy lead empower and
serve the products.Second make good use of both "AI+" and "+AI". On the one hand comprehensively enhance
the company's intelligent manufacturing level with "AI+" to empower the development of industrial
35Full Text of 2024 Annual Report of Konka Group Co. Ltd.
products. Utilize artificial intelligence technology in existing businesses to improve manufacturing
efficiency. On the other hand use +AI to achieve disruptive product innovation and iteration
strengthen the application of AI technology in product design and R&D processes and accelerate
the development of single products and smart product series and leverage AI technology to create
new product forms.
6. Focus on reform and quality improvement and improve the corporate governance system
First strengthen the governance of listed companies. Conscientiously implement the decisions
and deployments of the State-owned Assets Supervision and Administration Commission of the
State Council (SASAC) on improving the quality of central state-owned enterprise (SOE)-
controlled listed companies. Leverage the capital market to deepen reforms and promote
development focus on addressing the weaknesses and shortcomings that affect the high-quality
development of listed companies adopt targeted policies and measures make precisely-tuned
efforts enhance asset quality and operational efficiency strengthen self-value creation capabilities
and drive the achievement of high-quality development. Second effectively carry out the "Science
and Technology Reform Action" (a special action for 100 science and technology-based enterprises
to deepen market-oriented reforms and enhance their independent innovation capabilities).Chongqing Konka Optoelectronic Technology Co. Ltd. will conscientiously implement the relevant
requirements of the State-owned Assets Supervision and Administration Commission of the State
Council (SASAC) focusing on reform tasks such as corporate governance mechanism innovation
enhancing the ability of value creation achieving breakthroughs in core technologies and the
transformation of achievements.XII. Reception of researches communications interviews and other activities during
the reporting period
√ Applicable □ Not applicable
Main points of Index of
Reception Place of Method of Type of object discussion and basic
Object of reception
Date reception reception of reception information information
provided of researches
For details
Chongqing please refer to
January 8 Konka Cinda Securities: LUO the Investor
2024 Optoelectronic On-site Institution Angyang Zhonggeng RelationsTechnology Fund: LU Weicheng Activity Record
Co. Ltd. Form (No. 2024
-01)
For details
Conference China Life Asset please refer to
January Room of Office the Investor
10 2024 Building of On-site Institution
Management: LI
Konka R&D Shanshan. TF Securities:
Relations
Building YU Xuejiao YAO Gan
Activity Record
Form (No. 2024 Http://www.- 02) cninfo.com.c
Conference CICC Fund: JIANG For details n/new/index
January Room of Office Others Institution Panyu LIU Xiao QIU please refer to11 2024 Building of Yanbing CIFC Asset the Investor
Konka R&D Management: XIE Relations
36Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Building Bingzhi CAO Yan LI Activity Record
Wei Huaxi Securities: Form (No. 2024
CHEN Yulu LA - 03)
Ruimeng
For details
Conference Cedar Capital: YANG please refer to
January Room of OfficeBuilding of On-site Institution Ao SONG Chengcheng
the Investor
17 2024 Konka R&D Huaxi Securities: LA
Relations
Ruimeng Activity RecordBuilding Form (No. 2024
-04)
Huaan Securities: DENG
Xin CHEN Yaobo
Fullgoal Fund: FAN
Bowen Kaiyuan Asset For details
Conference Management: ZHENG please refer to
January Room of Office Xiaofan Great Wall Fund: the Investor
18 2024 Building of On-site Institution YIN Ning Ping An Fund: RelationsKonka R&D WANG Xiubao. Activity Record
Building Industrial Securities: Form (No. 2024
WANG Yuqing Qianhai - 05)
Alliance Asset
Management: DU
Hongsheng
Changjiang Securities:
CAI Shaodong Oriental
Alpha Fund: LIANG
Shaowen JPMorgan Asset For details
Conference Management: LI Ziyang please refer to
January Room of Office Cinda Australia Asia the Investor
19 2024 Building of On-site Institution Fund: LUO Chenxi RelationsKonka R&D Fortune & Royal Asset: Activity Record
Building MAO Yunhong China Form (No. 2024
Merchants Fund: GAO - 06)
Yan V-Fund: ZENG Jie
Qianhai Alliance Asset
Management: WEI An
For details
Conference please refer to
January Room of Office TF Securities: XU the Investor
25 2024 Building of On-site Institution Junfeng LIU Yun YAO RelationsKonka R&D Gan Activity Record
Building Form (No. 2024
-07)
For details
Conference please refer to
January Room of Office Southwest Securities: LI the Investor
31 2024 Building of On-site Institution Mingming Guolian Fund: RelationsKonka R&D CHEN Zurui Activity Record
Building Form (No. 2024
-08)
Sinolink Securities: LIU
Yanxue GH Shining
Asset Management: LI For details
Conference Hui Southern Asset please refer to
February Room of Office Management: CHEN the Investor
1 2024 Building of On-site Institution Sizhen Guosheng RelationsKonka R&D Securities: XU Chengying Activity Record
Building Bosera Funds: XU Form (No. 2024
Heyuan HFT Fund: - 09)
ZHAO Chenkai Wanjia
Asset: LI Liya
Conference Ruilong Capital: LV For details
April 2 Room of Office Weiqun CICC Yinhai please refer to
2024 Building of On-site Institution (Hong Kong) Fund: the InvestorKonka R&D YONG Xin Alta Capital: Relations
Building BAI Jianhua Fortune Activity Record
37Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Factorial (Hong Kong) Form (No. 2024
Fund: ZHANG Dongxiao - 10)
GF Securities: LI
Mengling Capital
Securities: DENG Jiwei
Investors participating in
the 2023 Online For detailsConference please refer to
April 15 Room of Office
Performance Briefing of
Building of Others Individual Konka Group Co. Ltd.the Investor
2024 Konka R&D through the
Relations
Building irm.cninfo.com.cn of the
Activity Record
Shenzhen Stock Exchange Form (No.2024-
(http://irm.cninfo.com.cn) 11)
For details
Conference Guotai Junan: CAI please refer to
May 15 Room of Office Wenjuan QU Shiqiang the Investor
2024 Building of On-site Institution Sino Life Asset: HUANG RelationsKonka R&D Jin Dacheng Fund: TONG Activity Record
Building Ruoyan LIU Yanlin Form (No.2024-
12)
China Galaxy Securities: For details
Conference LI Kaien LAO Tongliang please refer to
May 16 Room of Office Chenghechang Private the Investor
2024 Building of On-site Institution Securities Fund: LIU RelationsKonka R&D Zhihong JIANG Jin Activity Record
Building Chengtian Chuanfu Asset Form (No.2024-
Management: DAI Jiuhou 13)
China Development Bank
Conference Capital: HU Yongjun.For details
Room of Office Hengjiang Alliance
please refer to
May 17 Building of On-site Institution Investment: ZHOU Zeyi.the Investor
2024 Konka R&D AVIC Yingfu Investment:
Relations
HUANG Yong Activity RecordBuilding Chuanghua Investment: Form (No.2024-
LI Junhui 14)
For details
Conference please refer to
June 4 Room of Office the Investor
2024 Building of On-site Institution
Southwest Securities: Relations
Konka R&D FANG Jianzhao Activity Record
Building Form (No.2024-
15)
For details
Conference please refer to
November Room of Office CITIC Securities: WANG the Investor
11 2024 Building of On-site Institution Weida Baoning Capital: RelationsKonka R&D HUANG Weixiang Activity Record
Building Form (No.2024-
16)
Shenzhen Roadshow Era
Technology Co. Ltd.:
HUANG Jingrong
Shenzhen Huihe
Chuangshi Investment
Management Co. Ltd.: For details
Conference WANG Zhaojiang Leying please refer to
November Room of Office (Zhuhai) Private the Investor
20 2024 Building of On-site Institution Securities Investment RelationsKonka R&D Management Co. Ltd.: Activity Record
Building CHEN Qingyuan Form (No.2024-
Shenzhen Hongyuantai 17)
Asset Management Co.Ltd.: LAI Biqi Shenzhen
Fugue Investment
Holding Co. Ltd.:
ZHANG Ji
December Via the Investor Others Individual Investors participating in For details
38Full Text of 2024 Annual Report of Konka Group Co. Ltd.
12 2024 Relations the 2024 Shenzhen please refer to
Interactive Regional Listed the Investor
Platform on Companies Collective Relations
www.p5w.net Reception Day event Activity Record
through the Investor Form (No.2024-
Relations Interactive 18)
Platform on www.p5w.net
XIII. Formulation and Implementation of Market Capitalization Management System
and Valuation Enhancement Plan
Whether the Company has formulated a market capitalization management system.□ Yes √ No
Whether the Company has disclosed its valuation enhancement plan.□ Yes √ No
XIV. Implementation of the "Quality and Return Dual Enhancement" Action Plan
Whether the Company has disclosed an announcement on "Quality and Return Dual
Enhancement" Action Plan.□ Yes √ No
39Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Section IV Corporate Governance
I. General Information on Corporate Governance
During the reporting period in strict accordance with the requirements of the Company Law
the Securities Law the Code of Corporate Governance for Listed Companies the Rules Governing
the Listing of Shares on Shenzhen Stock Exchange relevant laws regulations and rules of the
China Securities Regulatory Commission (CSRC) as well as the actual needs of the Company the
Company revised relevant internal control systems continuously improved the corporate
governance structure and standardized the company's operations in a timely manner. As at the end
of the reporting period the actual situation of corporate governance was basically in compliance
with the requirements of the relevant regulatory documents on governance of listed companies
issued by the CSRC.(I) About shareholders and general meetings of shareholders
The Company has formulated the Articles of Association and the Rules of Procedure for
General Meetings of Shareholders which ensure the legitimate rights and equal status of all
shareholders especially minority shareholders. During the reporting period the Company was in
strict compliance with relevant requirements to issue notices on the general meetings of
shareholders in advance and convene the general meetings of shareholders ensuring that
shareholders had the rights to be informed and participate in major matters of the Company. Related
party transactions between the Company and related parties are fair and reasonable and have been
fully disclosed as required. In 2024 the company held a total of six general meetings of
shareholders. In accordance with the requirements of laws and regulations the Company issued a
notice of convening the general meetings of shareholders in advance through the designated media
and earnestly carried out the registration arrangement and organization work for the general
meetings of shareholders. The Company strictly adhered to the provisions of the Articles of
Association to hold on-site general meetings of shareholders at the Company's office address which
is conveniently located allowing shareholders to attend the meetings based on their actual
circumstances. The Company's directors supervisors and senior management provided
explanations and clarifications in response to shareholders' inquiries and suggestions during the
general meetings of shareholders.(II) The Company and its controlling shareholder
During the reporting period the controlling shareholder and the actual controller of the
company have conducted themselves in a standardized manner exercised their rights and fulfilled
their obligations in accordance with the law. All major decisions of the Company were made by the
general meetings of shareholders in accordance with the law. The controlling shareholder and the
40Full Text of 2024 Annual Report of Konka Group Co. Ltd.
De Facto Controller of the Company have not directly or indirectly interfered in the Company's
decision-making and business operations beyond the scope of authority of the general meeting of
shareholders. The Board of Directors Board of Supervisors and internal organizations of the
Company are able to operate independently and are independent of the controlling shareholders and
De Facto Controllers by practicing the “Five Separations” in terms of business personnel assets
organizations and finances.(III) Directors and the Board of Directors
The number and composition of the Board of Directors of the Company are in compliance with
the requirements of laws and regulations and the Company has formulated the Rules of Procedure
of the Board of Directors to ensure the efficient operation and scientific decision-making of the
Board of Directors; The Company has established an Independent Directors System and has
selected and appointed three independent directors. During the reporting period the number and
composition of the Board of Directors of the Company were in compliance with the laws and
regulations and the provisions of the Articles of Association. The Board of Directors of the
Company has set up four professional committees namely the Finance and Audit Committee the
Nomination Committee the Remuneration and Evaluation Committee and the Strategy Committee
to provide professional advice for the Board's decision-making. All directors of the Company are
able to carry out their tasks and fulfill their duties in accordance with the Rules of Procedure of the
Board of Directors the Independent Directors System and other systems and diligently attend the
Board meetings. During the reporting period the Company held a total of eighteen Board meetings
effectively leveraging the decision-making mechanism of the Board of Directors.(IV) Supervisors and Board of Supervisors
The Company has formulated the Rules of Procedure of the Board of Supervisors and the
composition and structure of the Board of Supervisors are in compliance with the requirements of
relevant laws and regulations; The Supervisors are able to fulfill their duties conscientiously and are
able to exercise their supervisory and inspection functions independently and effectively in the
spirit of accountability to shareholders. During the reporting period the number and composition of
the Board of Supervisors of the Company were in compliance with the requirements of laws and
regulations. The Company's supervisors were able to conscientiously perform their duties in
accordance with the Rules of Procedure for the Board of Supervisors and other requirements
supervise the decision-making procedures and resolutions of the board meetings and the operations
of the Company in accordance with the law convene the meetings of the Board of Supervisors in
accordance with the prescribed procedures and effectively supervise the Company's major matters
related-party transactions and financial situation as well as the legality and compliance of the
performance of duties by the directors the President and other senior management of the Company.(V) Performance evaluation incentive and restraint mechanism
41Full Text of 2024 Annual Report of Konka Group Co. Ltd.
The appointment of the Company's senior management is open transparent and in compliance
with laws and regulations. The Company has established and is gradually improving the
performance evaluation standards and incentive and restraint mechanism for senior management
personnel so as to attract talents and ensure the stability of senior management personnel.(VI) Stakeholders
The relationship between the Company and its stakeholders including banks and its creditors
employees consumers and suppliers is one of complementarity mutual promotion and common
development and the Company is able to fully respect and safeguard the legitimate rights of the
stakeholders and actively cooperate with them to jointly promote the sustainable and healthy
development of the Company. During the reporting period the Company fully respected and
safeguarded the legitimate rights and interests of relevant stakeholders achieved a coordinated
balance of the interests of society shareholders and employees safeguarded the rights and interests
of employees promoted environmental protection and actively participated in social welfare and
charitable undertakings to jointly promote the Company's sustained and steady development.(VII) Information disclosure and transparency
The Company has formulated the Investor Relations Management System the Information
Disclosure Management System and the Implementation Rules of the Information Disclosure
Committee designated dedicated persons to be responsible for information disclosure appointed a
dedicated department to receive shareholders' visits and inquiries and actively carried out investor
relations management work to ensure that all shareholders have equal opportunities to access
information. During the reporting period the Company was able to disclose in a timely truthful
complete and accurate manner all types of corporate information that should be disclosed to the
public in accordance with the regulations in strict accordance with the laws regulations and the
Articles of Association of the Company ensuring accurate and timely disclosure of corporate
information and guaranteeing that all shareholders had equal opportunities of access to the
Company's information.(VIII) Non-standard Governance issues in the Company
1. Types of non-standard governance issues in the Company
There have been the circumstances where the Company provided undisclosed information to
major shareholders.
2. Types and frequency of provision of undisclosed information to major shareholders
The Company provides monthly financial data to its major shareholders.
3. Reasons for the existence of related non-standard corporate governance issues.
In accordance with the management requirements of the State-owned Assets Supervision and
Administration Commission of the State Council (SASAC) the Company submits monthly
financial data and other undisclosed information to the major shareholders directly under the
42Full Text of 2024 Annual Report of Konka Group Co. Ltd.
jurisdiction of SASAC.
4. Impacts on the company's independence
The Company's self-inspection shows that the Company strictly has adhered to the
requirements of the Notice on Strengthening Supervision over the Provision of Undisclosed
Information by Listed Companies to Major Shareholders and De Facto Controllers and the
Supplementary Notice on Strengthening Supervision over Non-standard Governance Practices Such
as the Provision of Undisclosed Information by Listed Companies to Major Shareholders and
Actual Controllers and other relevant documents when providing relevant information to major
shareholders and strictly followed the necessary procedures. There has been no abuse of control by
major shareholders to disclose undisclosed information for insider trading and there has been no
impact on the Company's independence.(IX) Implementation of corporate governance special activities and the formulation and
implementation of the insider registration management system
1. Establishment and improvement of the insider management system
In order to further standardize the Company's insider information management practices
strengthen the confidentiality of the Company's insider information and uphold the principle of fair
information disclosure and in accordance with the Company Law the Securities Law the Measures
for the Regulations on Information Disclosure of Listed Companies the Rules Governing the
Listing of Shares on Shenzhen Stock Exchange and other relevant laws regulations and normative
documents the Company has established the Inside Information and Insider Management System of
Konka Group Co. Ltd. The Company strictly implements and enforces the system in its
information disclosure practices. In addition the Company has conscientiously implemented the
Company's regulations on the registration and management of such insiders registered such insiders
and submitted filings to the Shenzhen Stock Exchange in accordance with the regulations.The Company has conducted a special inspection on the management of inside information
during the occurrence of major events in 2024 and the reporting period of the 2024 annual report.The self-inspection shows that the Company has effectively ensured that during the period of
preparation consideration and disclosure of regular reports and major events the insiders of the
Company have been in strict compliance with the provisions on confidentiality. They have not
leaked disclosed or spread the Company's inside information to outsiders. There have been no
cases where insiders traded the Company's stocks using inside information prior to the disclosure of
major sensitive information that may affect the Company's stock price and there have been no cases
of investigation punishment and rectification by the regulatory authorities. Inside Information and
Insider Management System of Konka Group Co. Ltd. was implemented and controlled effectively.
2. Establishment and implementation of external information user management system
In order to strengthen the management of the filings of the Company's inside information in
43Full Text of 2024 Annual Report of Konka Group Co. Ltd.
accordance with the relevant provisions of laws regulations and normative documents such as the
Securities Law of the People's Republic of China the Regulations on Information Disclosure of
Listed Companies and the Inside Information and Insider Management System of Konka Group
Co. Ltd. the Company has established an inside information filing mechanism which regulates the
matters such as the scope of inside information filing the filing procedures and the division of
responsibilities.The Company has conducted a special inspection on the management of inside information
during the occurrence of major events in 2024 and the reporting period of the 2024 annual report.The self-inspection shows that the Company's inside information filings have been in compliance
with with the requirements of the Inside Information and Insider Management System of Konka
Group Co. Ltd. Inside Information and Insider Management System of Konka Group Co. Ltd. was
implemented and controlled effectively.Whether there have been significant differences between the actual state of corporate
governance and the laws administrative regulations and the regulations issued by the CSRC on the
governance of listed companies
□ Yes √ No
The actual state of corporate governance has not differed materially from the laws
administrative regulations and the provisions on governance of listed companies issued by the
CSRC.II. The Company's Independence Relative to Its Controlling Shareholders and De
Facto Controllers in Terms of Assets Personnel Finance Organization and Business
During the reporting period the Company was completely separated from its controlling
shareholder in terms of business personnel assets organizations finance etc. It enjoyed the status
of an independent legal entity and a market competition subject conducted independent accounting
had an independent and complete business operation and the capability of independent operation
and independently assumed operating responsibilities and risks.(I) Business separation: The Company has a complete supply R&D production and sales
system with the capability to operate independently in the market. It conducts independent
operations accounting decision-making and independently assumes responsibilities and risks
without interference or control from the controlling shareholder De Facto Controller or other
enterprises controlled by them.(II) Personnel separation: The Company has an independent and complete system for labor
HR and salary management which is completely independent of the controlling shareholder and
De Facto Controller. The Company has an independent workforce. Its senior management personnel
financial staff and business personnel are all full-time employees in the Company and receive their
salaries. They do not hold any positions other than directors and supervisors in the shareholder
44Full Text of 2024 Annual Report of Konka Group Co. Ltd.
entities or their affiliates.(III) Assets integrity: The Company has production and operation premises independent of
those of the controlling shareholder possesses an independent and complete asset structure and
owns assets such as an independent production system auxiliary production system supporting
facilities and housing ownership rights. It also has an independent procurement and sales system.(IV) Organization separation: The company has established functional organizations that meet
its own development needs and the requirements of market competition. All functional
organizations are completely independent in terms of personnel office premises and management
systems. There have been no circumstances of interference in the establishment of the Company's
organization by shareholders or any other entity or individual.(v) Financial independence: The Company has an independent financial department with full-
time financial personnel has established an independent financial accounting system and complies
with the requirements of the relevant accounting system to carry out financial work independently;
The Company has formulated a sound financial management system operates independently and
does not share bank accounts with its controlling shareholders affiliates or any other entities or
individuals; The Company files tax returns and fulfills its payment obligations independently in
accordance with the law and there have been no cases involving mixed tax payments with
shareholder entities.III. Industry Competitions
□Applicable √ Not applicable
IV. Annual General Meetings and Extraordinary General Meetings of Shareholders
Held during the Reporting Period
1. General meetings of shareholders held during the reporting period
Investor
Session No. Type ofmeeting participatio Meeting date Disclosure date Meeting resolutionsn ratio
Extraordinary
1st Extraordinary General Resolutions of the 1st Extraordinary
General 23.81% February 26 2024 February 27 2024
Meeting of 2024 General Meeting of 2024
Meeting
Extraordinary
2nd Extraordinary General Resolution of the 2nd Extraordinary
General 1.98% March 18 2024 March 19 2024
Meeting of 2024 General Meeting of 2024
Meeting
Annual General Meeting of Annual general Resolutions of the Annual General
23.48% June 24 2024 June 25 2024
2023 meeting Meeting of 2023
3rd Extraordinary General Extraordinary Resolutions of the 3rd
General 21.75% September 26 2024 September 27 2024 Extraordinary General Meeting of
Meeting of 2024 Meeting 2024
4th Extraordinary General Extraordinary Resolutions of the 4th
General 22.54% October 21 2024 October 22 2024 Extraordinary General Meeting of
Meeting of 2024 Meeting 2024
5th Extraordinary General Extraordinary
General 22.76% November 18 2024 November 19 2024 Resolutions of 5th Extraordinary
Meeting of 2024 Meeting General Meeting of 2024
2. Preferred shareholders with restored voting rights requesting the convening of
extraordinary general meetings of shareholders
□Applicable √ Not applicable
45Full Text of 2024 Annual Report of Konka Group Co. Ltd.
V. Directors Supervisors and Senior Officers
1. Basic information
Empl Sharehold Increase DecreaseTerm Term ing at the in the in the Other Shareholdoyme increase/d ing at the Reasons forName Gender Age Title nt start end beginning shareholdi shareholdi ecrease end of the changes in
status date date of the ng during ng duringperiod the period the period (shares) period
shareholding
Vice
Chairman of
Augu
ZHOU the Board of Incum July 25
Male 46 st 27 0 0 0 0 0
Bin Directors bent 2025
2024
(presiding
over work)
Octob
CAO Incum July 25
Male 47 Director er 21 0 0 0 0 0
Shiping bent 2025
2024
July
YE Employee Incum July 25
Male 55 25 0 0 0 0 0
Xingbin Director bent 2025
2022
Octob
HUANG Incum July 25
Male 47 Director er 21 0 0 0 0 0
Xinzheng bent 2025
2024
July
Independent Incum July 25
LIU Jian Male 59 25 0 0 0 0 0
Director bent 2025
2022
July
WANG Independent Incum July 25
Male 54 25 0 0 0 0 0
Shuguang Director bent 2025
2022
July
DENG Independent Incum July 25
Female 62 25 0 0 0 0 0
Chunhua Director bent 2025
2022
Supervisor
July
CAI Chairman of Incum July 25
Male 52 25 0 0 0 0 0
Weibin the Board of bent 2025
2022
Supervisors
July
YANG Incum July 25
Male 56 Supervisor 25 0 0 0 0 0
Guobin bent 2025
2022
July
Employee Incum July 25
LI Jun Male 54 25 0 0 0 0 0
Supervisor bent 2025
2022
Augu May
CAO Incum
Male 47 President st 27 18 0 0 0 0 0
Shiping bent
20242026
Augu May
Financial Incum
NIE Yong Male 52 st 27 18 0 0 0 0 0
Director bent
20242026
May May
YANG Vice Incum
Male 55 18 18 0 0 0 0 0
Bo President bent
20232026
May May
LIN Vice Incum
Male 54 18 18 0 0 0 0 0
Hongfan President bent
20232026
46Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Secretary of Augu May
LI Incum
Male 52 the Board of st 27 18 0 0 0 0 0
Chunlei bent
Directors 2024 2026
Director July August
LIU Form
Male 54 Chairman of 25 26 0 0 0 0 0
Fengxi er
the Board 2022 2024
July August
Form
YAO Wei Male 50 Director 25 26 0 0 0 0 0
er
20222024
Secretary of May August
WU Form
Male 50 the Board of 18 26 0 0 0 0 0
Yongjun er
Directors 2023 2024
May August
LI Vice Form
Male 57 18 26 0 0 0 0 0
Hongtao President er
20232024
Total 0 0 0 0 0
Whether there have been departures of any directors supervisors or dismissals of senior
management personnel during their terms of office in the reporting period
√ Yes □ No
On August 26 2024 Mr. Liu Fengxi resigned from his positions as Chairman of the 10th
Session of the Board of Directors Director and Member of the Strategy Committee of the Board
of Directors of the Company due to work arrangements.On August 26 2024 Mr. Yao Wei resigned from his position as a Non-independent Director
of the 10th Board of Directors of the Company and his positions in the relevant specialized
committees of the Board of Directors due to work arrangements.On August 26 2024 Mr. ZHOU Bin resigned from his position as President of the Company
due to work arrangements.On August 26 2024 Mr. LI Chunlei resigned from his position as Financial Director of the
Company due to work arrangements.On August 26 2024 Mr. WU Yongjun resigned from his position as Secretary of the Board
of Directors of the Company due to work arrangements.On August 26 2024 Mr. LI Hongtao resigned from his position as Vice President of the
Company due to personal reasons.Changes of directors supervisors and senior officers
√ Applicable □ Not applicable
Name Position(s) held Type Date Reason
Vice Chairman of the Board of
ZHOU Bin Elected August 27 2024 Job transfer
Directors (presiding over work)
CAO Shiping President Appointment August 27 2024 Job transfer
CAO Shiping Director Elected October 212024 Job transfer
HUANG
Director Elected October 212024 Job transfer
Xinzheng
NIE Yong Financial Director Appointment August 27 2024 Job transfer
Secretary of the Board of
LI Chunlei Appointment August 27 2024 Job transfer
Directors
LIU Fengxi Chairman of the Board of Former August 26 2024 Job transfer
47Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Directors Director
YAO Wei Director Former August 26 2024 Job transfer
ZHOU Bin President Former August 26 2024 Job transfer
LI Hongtao Vice President Former August 26 2024 Personal reasons
Secretary of the Board of
WU Yongjun Former August 26 2024 Job transfer
Directors
LI Chunlei Financial Director Former August 26 2024 Job transfer
2. Employment Information
Professional background and major work experience of the Company's current directors
supervisors and senior management as well as their current major responsibilities in the Company
(1) Non-independent Director
Mr. ZHOU Bin Secretary of the Party Committee Director and Vice Chairman of the Board of
Directors (presiding over work). Male of Han ethnicity born in 1979 with a bachelor's degree. He
previously served as Assistant to Director Deputy Director and Director of the Operations
Management Center at Konka Group Assistant to the Chairman of the Board of Directors and
Director of the Operations Management Center at Konka Group and President of Konka Group
among other positions. He currently serves as the Chairman of Shenzhen Konka Investment
Holding Co. Ltd. Konka Group's Secretary of the Party Committee Director and Vice Chairman of
the Board of Directors (presiding over work)
Mr. CAO Shiping Deputy Secretary of the Party Committee Chief Executive Officer (CEO)
Director and President. Male of Han ethnicity born in 1978 with a master's degree. He previously
served as General Manager of Konka Group's Multimedia Division Jinzhou Branch and Tianjin
Branch General Manager of the Customer Cooperation Department of the Multimedia Division
Deputy General Manager of the Multimedia Marketing Division Deputy General Manager of the
Head Office of Multimedia Division and General Manager of the Marketing Center General
Manager of the Multimedia Division General Manager of the Internet Division Vice President and
Executive Vice President of Konka Group among other positions. He currently serves as the Chief
Executive Officer (CEO) Director President and Deputy Secretary of the Party Committee of
Konka Group.Mr. YE Xingbin Deputy Secretary of the Party Committee and Employee Director. Male of
Han ethnicity born in 1970 with a bachelor's degree. He previously served as Full-time Director of
Overseas Chinese Town Holdings Company held concurrent positions as Member of the Standing
Committee of the Party Committee of Qiandongnan Prefecture and Deputy Governor of the
Qiandongnan Prefecture Government in Guizhou Province Director of Shenzhen Huakang
Chuangzhan Technology Holding Group Co. Ltd. and Deputy Secretary of the Party Committee
and Director of Konka Group. He currently serves as Vice Chairman of the Trade Union Federation
Committee of Overseas Chinese Town Holdings Company Deputy Secretary of the Party
48Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Committee Chairman of the Trade Union and Employee Director of Konka Group.Mr. HUANG Xinzheng Director. Male of Han ethnicity born in 1978 with a bachelor's
degree. He previously served as Deputy Chief Accountant of Shenzhen Overseas Chinese Town
Western Investment Co. Ltd. Deputy Chief Accountant of the Shenxi Division of Shenzhen
Overseas Chinese Town Co. Ltd. Chief Accountant of Shenzhen Overseas Chinese Town Western
Investment Co. Ltd. Chief Accountant of the Shenxi Division of Shenzhen Overseas Chinese
Town Co. Ltd. and Financial Director of Shenzhen Overseas Chinese Town Hotel Development
Co. Ltd. among other positions. He currently serves as Deputy General Manager of the Financial
Operations Department of Overseas Chinese Town Holdings Company Chief Accountant of
Shenzhen Overseas Chinese Town Capital Investment Management Co. Ltd. Financial Director of
Hong Kong Overseas Chinese Town Co. Ltd. and Director of Konka Group.
(2) Independent Director
Mr. LIU Quanjian Independent Director. Male of Han ethnicity born in 1966 with a master's
degree. He previously served as Editor at the University of International Business and Economics
Press Editor at the China Business Times Independent Director of Wuhan Tianyuan Environmental
Protection Co. Ltd. Independent Director of Hisense Visual Technology Co. Ltd. and Independent
Director of Founder Technology Group Co. Ltd. among other positions. He currently serves as
Director and General Manager of Shandong Economic Observer Media Co. Ltd. President and
Editor-in-Chief of the Economic Observer Chairman of Beijing Jingguan Culture Media Co. Ltd.and Independent Director of Konka Group.Mr. WANG Shuguang Independent Director. Male of Han ethnicity born in 1971 with a
doctoral degree. He previously served as Independent Director of Yantai Rural Commercial Bank
Jinan Rural Commercial Bank Ningbo Yuyao Rural Commercial Bank and SDIC Zhonglu Group
External Supervisor and Convener of the Board of Supervisors of Industrial Bank among other
positions. He currently serves as Professor and Doctoral Supervisor at the School of Economics of
Peking University Executive Deputy Director of the Institute of Industry and Culture at Peking
University and Independent Director of Konka Group.Ms. DENG Chunhua Independent Director. Female of Han ethnicity born in 1963 Master of
Business Administration Professor of Accounting Chinese Certified Public Accountant (non-
practicing member). She previously served as Chief Accountant and Project Manager at WUYIGE
Certified Public Accountants LLP of Zhongnan University of Finance and Economics Teaching
Assistant Lecturer Associate Professor and Professor at the School of Accounting of Zhongnan
49Full Text of 2024 Annual Report of Konka Group Co. Ltd.
University of Economics and Law (formerly Zhongnan University of Finance and Economics)
Independent Director of Zhejiang Jinhai High-Tech Co. Ltd. among other positions. Currently she
serves as a Professor at the School of Accounting of Zhongnan University of Economics and Law
Independent Director of Zhejiang Jinke Tom Culture Industry Co. Ltd. Independent Director of
Wolong Electric Drive Group Co. Ltd. and Independent Director of Konka Group.
(3) Supervisors
Mr. CAI Weibin Chairman of the Board of Supervisors. Male of Han ethnicity born in 1973
with a master's degree. He previously served as Deputy General Manager Deputy Secretary of the
Party Committee and Secretary of the Discipline Inspection Commission of Chongqing Overseas
Chinese Town Industrial Development Co. Ltd. Deputy Director of the Discipline Inspection and
Supervision Department and Director of the Discipline Enforcement and Review Office of
Overseas Chinese Town Holdings Company among other positions. He currently serves as General
Manager of the Legal and Compliance Department of Overseas Chinese Town Holdings Company
and Chairman of the Board of Supervisors of Konka Group.Mr. YANG Guobin Supervisor. Male born in 1969 with a bachelor's degree Certified Public
Accountant. He previously served as Deputy Director of the Finance Department of Overseas
Chinese Town Holdings Company Financial Director of Konka Group and Deputy Director of the
Enterprise Management Department of Overseas Chinese Town Holdings Company among other
positions. He currently serves as Full-time Director of Overseas Chinese Town Holdings Company
and Supervisor of Konka Group.Mr. LI Jun Employee Supervisor. Male of Han ethnicity born in 1971 with a bachelor's
degree. He previously served as Senior Manager of the Finance Department at Shenzhen
Communication Technology Company Senior Manager Assistant to Director and Deputy Director
of the Audit and Legal Affairs Center at Konka Group Director of the Discipline Inspection
Commission Office at Konka Group and Employee Supervisor of Konka Group. He currently
serves as Director of the Supervision Audit Legal and Compliance Center of Konka Group and
Employee Supervisor of Konka Group.
(4) Senior management
Mr. CAO Shiping Deputy Secretary of the Party Committee Chief Executive Officer (CEO)
Director and President. Male of Han ethnicity born in 1978 with a master's degree. He previously
served as General Manager of Konka Group's Multimedia Division Jinzhou Branch and Tianjin
50Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Branch General Manager of the Customer Cooperation Department of the Multimedia Division
Deputy General Manager of the Multimedia Marketing Division Deputy General Manager of the
Head Office of Multimedia Division and General Manager of the Marketing Center General
Manager of the Multimedia Division General Manager of the Internet Division Vice President and
Executive Vice President of Konka Group among other positions. He currently serves as the Chief
Executive Officer (CEO) Director President and Deputy Secretary of the Party Committee of
Konka Group.Mr. NIE Yong Financial Director. Male of Han ethnicity born in 1973 with a bachelor's
degree. He previously served as Director of the Finance Department of Shenzhen Overseas Chinese
Town Happy Valley Tourism Company Director of the Finance Department of Beijing Century
Overseas Chinese Town Industrial Co. Ltd. Director of the Finance Department of the Happy
Valley Division of Shenzhen Overseas Chinese Town Co. Ltd. Financial Director of Shenzhen
Overseas Chinese Town Culture and Tourism Technology Co. Ltd. Chief Accountant of Shenzhen
Overseas Chinese Town Culture Group Co. Ltd. and Chief Accountant of Overseas Chinese Town
Northern Investment Co. Ltd. He currently serves as the Financial Director of Konka Group.Mr. YANG Bo Vice President. Male of Han ethnicity born in 1970 with a master's degree.He previously served as Director at the Education and Finance Channel of Shenzhen Cable
Television Regional Director of Marketing Sales and Support at Tellabs Communications Inc.General Manager of the Program Operations Department at Shenzhen Topway Video
Communication Co. Ltd. Director and General Manager of Shenzhen Tianhua Century Media Co.Ltd. General Manager of the Marketing and Sales Center at Shenzhen Topway Video
Communication Co. Ltd. and Vice President of Konka Group. He currently serves as Vice
President of Konka Group.Mr. LIN Hongfan Vice President. Male of Han ethnicity born in 1971 with a MBA degree.He previously served as Deputy General Manager of the Multimedia Marketing Division General
Manager of the Color TV Strategy and Supply Chain Management Center Executive Deputy
General Manager and General Manager of the Multimedia Business Division and Assistant to the
President and Vice President of Konka Group. He currently serves as Vice President of Konka
Group.Mr. LI Chunlei Secretary of the Board of Directors. Male of Han ethnicity born in 1973 with
a master's degree. He previously served as Director of the Financial Cost Center of the Real Estate
Division at Konka Group Deputy General Manager and General Manager of Kunshan Kangsheng
Investment Development Co. Ltd. Deputy Director (presiding over work) and Director of the
51Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Strategic Development Center General Manager of the Financial Center and General Manager of
the Fund Settlement Center and Financial Director of Konka Group among other positions. He
currently serves as Secretary of the Board of Directors of Konka Group.Position held at shareholder entity
√ Applicable □ Not applicable
Whether the
Name of
subject receives
person Positions held at Term
Name of shareholders Term start date remuneration or
holding the shareholders end date
allowance from
position
the shareholders
CAI Weibin Overseas Chinese Town
General Manager of Legal
Holdings Company and Compliance December 1 2020 YesDepartment
HUANG Overseas Chinese Town Deputy General Manager of
Xinzheng Holdings Company Financial Operation March 11 2024 YesDepartment
YANG Overseas Chinese Town Full time Director of the
Guobin Holdings Company Board Office March 7 2018 Yes
Explanations 1. Apart from this none of the other directors supervisors or senior management personnel of the Company
on position hold positions in the shareholder entity.held at 2. The terms of office for Mr. CAI Weibin Mr. HUANG Xinzheng and Mr. YANG Guobin in their positions at
shareholders the shareholder entity are currently unknown.Position held at the shareholders
√ Applicable □ Not applicable
Whether the
subject receives
Name of Term
Position held at remuneration or
person holding Name of other entity Term start date end
other entities allowance from
the position date
the shareholding
entity
Editor-in-Chief
LIU Jian The Economic Observer April 16 2001
President
Director
Shandong Economic Observer
LIU Jian General September 28 2022 Yes
Media Co. Ltd.Manager
Beijing Economic Observer Chairman of the
LIU Jian May 25 2018
Culture Media Co. Ltd. Board
WANG School of Economics of Peking
Professor Yes
Shuguang University
WANG Institute for Cultural Industries of
Deputy Director
Shuguang Peking University
DENG Zhongnan University of
Professor Yes
Chunhua Economics and Law
DENG Zhejiang Jinke Tom Culture Independent
July 8 2020 Yes
Chunhua Industry Co. Ltd. Director
DENG Independent
Wolong Electric Group Co. Ltd. September 7 2020 Yes
Chunhua Director
Explanations on position held at shareholders None
Penalties imposed in the recent three years by the securities regulator on the incumbent
directors supervisors and senior management as well as those who left their positions during the
reporting period
52Full Text of 2024 Annual Report of Konka Group Co. Ltd.
□Applicable √ Not applicable
3. Remunerations of directors supervisors and senior officers
Decision-making procedure determination basis and actual payments of remunerations for
directors supervisors and senior management
The remunerations of directors and supervisors of the Company shall be approved by by the
Board of directors and thereafter submitted to the general meetings of shareholders for deliberation
and decision. With reference to the remuneration levels of directors and supervisors of listed
companies in the same industry in China the remuneration scheme for the Company's directors and
supervisors which was deliberated and approved by the Company's 2nd Extraordinary General
Meeting in 2015 is as follows: (1) The basic annual salary standard for the Chairman of the Board
of Directors is RMB 1.2 million. The allowance standard for other directors (excluding directors
who hold positions within the Company) is RMB 300000 per person per year and the allowance
standard for supervisors (excluding employee supervisors) is RMB 200000 per person per year.Implemented from June 2015. (2) The above standards are pre-tax standards and the individual
income tax shall be borne by the individuals themselves which shall be withheld and paid by the
Company.The additional benefits for directors and supervisors include the reimbursement of travel
expenses for attending meetings of the Board of Directors Board of Supervisors and the general
meetings of shareholders as well as the costs incurred in exercising their powers in accordance with
relevant regulations of regulatory authorities the Company's Articles of Association and other
related company policies all of which are reimbursed by the Company based on actual expenses.The remuneration of the Company's senior management is determined by the Board of Directors
with reference to the following factors: a. The job content and responsibilities of the position; B.Company's performance and profitability; C. The market remuneration levels within the same
industry and region.The remunerations of the Company's senior management shall be reviewed by the Board's
Remuneration and Evaluation Committee and then submitted to the Company's Board of Directors
for deliberation and decision.The remuneration information of the Company's directors supervisors and senior management
disclosed for the year 2024 has been reviewed and approved by the Remuneration and Evaluation
Committee of the Board of Directors.Compensations of the directors supervisors and senior officers of the Company during the
reporting period
Unit: RMB'0000
Employmen Total before- Whether the
Name Gender Age Title
t status tax subject receives
compensation compensation
53Full Text of 2024 Annual Report of Konka Group Co. Ltd.
received from from related
the Company parties of the
Company
Secretary of the Party
Committee Director Vice
ZHOU Bin Male 46 Chairman of the Board of Incumbent 86.33 No
Directors (presiding over
work)
Deputy Secretary of the
47 Party Committee ChiefCAO Shiping Male Incumbent 90.46 No
Executive Officer (CEO)
Director President
Deputy Secretary of the
YE Xingbin Male 55 Party Committee Employee Incumbent 79.70 No
Director
HUANG
Male 47 Director Incumbent 0 Yes
Xinzheng
LIU Jian Male 59 Independent Director Incumbent 30 No
WANG
Male 54 Independent Director Incumbent 30 No
Shuguang
DENG
Female 62 Independent Director Incumbent 30 No
Chunhua
52 Chairman of the Board ofCAI Weibin Male Incumbent 0 Yes
Supervisors
YANG
Male 56 Supervisor Incumbent 0 Yes
Guobin
LI Jun Male 54 Employee Supervisor Incumbent 87.12 No
NIE Yong Male 52 Financial Director Incumbent 17.60 No
YANG Bo Male 55 Vice President Incumbent 79.28 No
LIN Hongfan Male 54 Vice President Incumbent 83.42 No
Secretary of the Board of
LI Chunlei Male 52 Incumbent 71.43 No
Directors
54 Director Chairman of theLIU Fengxi Male Former 0 Yes
Board
YAO Wei Male 50 Director Former 0 Yes
LI Hongtao Male 57 Vice President Former 61.11 No
50 Secretary of the Board ofWU Yongjun Male Former 59.46 No
Directors
Total -- -- -- -- 805.91 --
Other information or explanations
□ Applicable √ Not applicable
VI. Performance of Duties by Directors during the Reporting Period
1. Information on the Board of Directors during the reporting period
Session No. Meeting date Disclosure date Meeting resolutions
Resolutions on the Company's Payroll Settlement Plan for
21st of the January 10 2024 2022 and the Company's Payroll Budget Plan for 2023Tenth Session Resolutions on Special Operation Improvement Incentive for
the Company's Management Team for 2022
22nd of the February 6 2024 February 7 2024 Resolutions of the 22nd Meeting of the Tenth Board ofTenth Session Directors
Resolutions of the 23rd Meeting of the Tenth Board of
Directors
23rd of the March 1 2024 March 2 2024 Resolutions on Applying for a Comprehensive Credit LineTenth Session from China Minsheng Bank Shenzhen Branch
Resolutions on Applying for a Comprehensive Credit Line
from Bank of Beijing
54Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Resolutions on Applying for a Comprehensive Credit Line
from China CITIC Bank
Resolutions on Applying for a Comprehensive Credit Line
from Hengfeng Bank
Resolutions on Applying for a Comprehensive Credit Line
from China Construction Bank
Resolutions on Applying for a Comprehensive Credit Line
from Agricultural Bank of China
Resolutions on Applying for a Comprehensive Credit Line
from Shanghai Pudong Development Bank
Resolutions on Applying for a Comprehensive Credit Line
from Huaxia Bank Shenzhen Branch
Resolutions on Applying for a Comprehensive Credit Line
from China Bohai Bank
Resolutions on Applying for a Comprehensive Credit Line
from Industrial Bank
Resolutions on Applying for a Comprehensive Credit Line
from Bank of Hangzhou
Resolutions on Applying for a Comprehensive Credit Line
from the Export-Import Bank of China Shenzhen Branch
Resolutions of the 24th Meeting of the Tenth Board of
Directors
Resolution on the Business Performance Responsibility
24th of the March 29 2024 April 2 2024 Statement of the Company's Management Team for 2024Tenth Session Resolutions on the Internal Audit Report of Konka Group
Resolution on the Compliance Management Work Report of
Konka Group for 2023
Resolutions of the 25th Meeting of the Tenth Board of
25th of the
Tenth Session April 26 2024
Directors
Resolutions on the Internal Control and Risk Management
Work Report of Konka Group for 2023
Resolution on the Listing and Transfer of 13% Equity in Hefei
26th of the May 16 2024 KONSEMI Storage Technology Co. Ltd.Tenth Session Resolutions on the Sale of Partial Shares of Chutian Dragon
Co. Ltd.
27th of the May 31 2024 June 1 2024 Resolutions of the 27th Meeting of the Tenth Board ofTenth Session Directors
28th of the
Tenth Session July 12 2024
Resolutions of the 28th Meeting of the Tenth Board of
Directors
29th of the Resolutions of the 29th Meeting of the Tenth Board of
Tenth Session July 19 2024 Directors
30th of the Resolutions on the Establishment of a Vehicle-mounted
Tenth Session August 15 2024 Backlight Joint Venture by Shenzhen KONSEMI and ItsPartner.
31st of the August 27 2024 August 28 2024 Resolutions of the 31st Meeting of the Tenth Board ofTenth Session Directors
32nd of the
Tenth Session August 29 2024
Resolutions of the 32nd Meeting of the Tenth Board of
Directors
Resolutions on the Merger by Absorption of Boluo Konka
Printed Circuit Board Co. Ltd. by Boluo Konka Precision
Technology Co. Ltd.
33rd of the Resolutions on Internal Transfer of 51% Equity in Guangdong
Tenth Session September 10 2024 September 11 2024 Xingda Hongye Electronics Co. Ltd. by AgreementResolutions of the 33rd Meeting of the Tenth Board of
Directors
Resolution on the Revision of Konka Group's 14th Five-Year
Strategic Plan
Resolutions of the 34th Meeting of the Tenth Board of
Directors
34th of the
Tenth Session September 18 2024 Resolutions on the Fixed Asset Investment Plan for 2024
Resolution on the De-registration of Konka Photovoltaic
Technology Co. Ltd.
35th of the
Tenth Session September 27 2024 September 28 2024
Resolutions of the 35th Meeting of the Tenth Board of
Directors
36th of the October 30 2024 October 31 2024 Resolutions of the 36th Meeting of the Tenth Board ofTenth Session Directors
55Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Resolutions on the Business Plan and Financial Budget Plan
for 2024
Resolutions on Applying for a Comprehensive Credit Line
from Bank of China
Resolutions on Applying for a Comprehensive Credit Line
from China Guangfa Bank Co. Ltd. Shenzhen Branch
Resolutions on Applying for a Comprehensive Credit Line
from Industrial and Commercial Bank of China
Resolutions on Applying for a Comprehensive Credit Line
from China Zheshang Bank
Resolutions on Applying for a Comprehensive Credit Line
from China Everbright Bank
Resolutions on Applying for a Comprehensive Credit Line
from Bank of Dongguan
Resolutions on Applying for a Comprehensive Credit Line
from Bank of Ningbo
37th of the November 6 2024 November 7 2024 Resolutions of the 37th Meeting of the Tenth Board ofTenth Session Directors
Resolutions on Adjusting the Remuneration Standards for
Senior Management
Resolutions on the Business Performance Evaluation Results
of the Company's Management Team for 2023
38th of the
Tenth Session December 13 2024 December 17 2024
Resolution on the Performance-Based Annual Salary Plan for
the Company's Management Team for 2023
Resolutions on the Company's Payroll Settlement Plan for
2023 and the Company's Payroll Budget Plan for 2024
Resolutions of the 38th Meeting of the Tenth Board of
Directors
2. Attendance of directors at board meetings and general meetings
Attendance of directors at board meetings and general meetings
Whether the
Number of Number of
subject has Number of
Board Number of board meetings Board
Number of failed to attend general
meetings to board attended meetings
Name of board the Board meetings
be attended meetings attended via attended
director meetings not meetings in of
for the attended on means of through a
attended person for two shareholde
reporting site telecommunicati proxy
consecutive rs attended
period on
times
LIU Fengxi 10 1 9 0 0 No 0
YAO Wei 10 1 9 0 0 No 0
ZHOU Bin 18 3 15 0 0 No 6
CAO Shiping 3 2 1 0 0 No 3
YE Xingbin 18 3 15 0 0 No 6
HUANG
Xinzheng 3 2 1 0 0 No 0
LIU Jian 18 1 17 0 0 No 0
WANG
Shuguang 18 2 16 0 0 No 0
DENG
Chunhua 18 2 16 0 0 No 1
Explanations on why the subject has failed to attend the Board meetings in person for two
consecutive times
None
3. Objections raised by directors on relevant matters of the Company
Whether the director has raised objections on relevant matters of the Company
□ Yes √ No
56Full Text of 2024 Annual Report of Konka Group Co. Ltd.
No objections have been raised by directors on relevant matters of the Company in the
reporting period.
4. Additional explanations on the performance of duties by directors
Whether the suggestions from directors have been adopted by the Company
√ Yes □ No
Explanations on why suggestions from directors have or have not been adopted by the
Company
During the reporting period the Company's directors actively attended relevant meetings
diligently reviewed various proposals and fully played their roles in "formulating strategies
making decisions and preventing risks" gained an in-depth understanding of the development of
businesses such as semiconductors as well as the Company's operational status internal control
construction and the implementation of resolutions of Board meetings.The Company's directors have leveraged their professional expertise to provide constructive
suggestions for the Company's development and corporate governance such as increasing R&D
investment focusing on cash flow actively expanding overseas markets driving cost reduction and
expense control in production strengthening cooperation with upstream and downstream partners
and mitigating foreign exchange risks.VII. Performance of Duties by Specialized Committees under the Board during the
Reporting Period
Other Details of
Name of Number ofMembers meetings Meeting Content of Important opinions and
information
committee on the
matters of
convened date meeting suggestions put forward performance dissent (if
of duties any)
1. Approve the audit
work arrangements for
Review the the company's 2023
financial annual report;
statements for 2. Approved the
2023 and the submission of the
audit work financial statements to
arrangements the Certified Public
for 2023 Accountants for audit;
January submitted by the
3. The annual audit
DENG firm engaged by the
Chunhua 10 2024
company's
Financial Center Company should
Audit YAO Wei (to be issued by strictly adhere to the
Committee WANG 7 the company requirements of the
Shuguang before the Chinese Certified
annual audit Public Accountant
certified public Auditing Standards
accountants while conducting the
enter the site). audit. Any major issuesidentified should be
promptly communicated
to this Committee.
1. Communicate 1. No objections were
March with the raised regarding the
14 2024 certified public Company's 2023accountants for financial accounting
annual audit and statements preliminarily
57Full Text of 2024 Annual Report of Konka Group Co. Ltd.
review the reviewed by ShineWing
Company's Certified Public
2023 financial Accountants LLP.
accounting 2. The Company's 2023
statements with internal audit work
preliminary internal control
audit opinions effectiveness and
issued by the management
certified public standardization have
accountants for been recognized with
annual audit an overall favorable
issue; situation.
2. Communicate
with the internal
audit
department of
the Company.
1. Review the 1. No objections were
2023 Internal raised regarding the
Audit Work 2023 Internal Audit
Report of Work Report of Konka
Konka Group Group the Self-
the Self- Assessment Report on
assessment the Quality of Internal
Report on the Audit Work at Konka
Quality of Group and the 2024
Internal Audit Internal Audit Plan of
Work of Konka Konka Group submitted
Group and the by the Company;
2024 Internal 2. No objections were
Audit Plan of raised regarding the
Konka Group 2023 annual report and
submitted by the its summary prepared
Company; by the Company as
2. Review the well as the standard
2023 annual unqualified opinion
report and its audit report issued by
summary ShineWing Certified
prepared by the Public Accountants
Company as LLP for 2023.well as the 3. Proposed to
March standard postpone the
19 2024 unqualified appointment of the audit
opinion audit firm for the Company's
report issued by 2024 financial
ShineWing statements;
Certified Public 4. The Company has
Accountants now established a
LLP for 2023; relatively complete
3. Postpone the internal control system.
appointment of The current internal
the audit firm control system complies
for the with the requirements of
Company's relevant national laws
2024 financial and regulations as well
statements; as the actual needs of
4. Review the the company's
Company's production operation
2023 internal and management and
control can be effectively
evaluation implemented. The
report and establishment of the
related internal control system
materials; has played a significant
5. Review the role in risk prevention
Report on the and control across all
Performance of aspects of the
58Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Supervision Company's production
Duties by the operation and
Accounting management ensuring
Firm in 2023. the orderly and effective
conduct of the
Company's business
activities safeguarding
the security and
integrity of the
Company's assets and
protecting the interests
of the Company and its
shareholders. The
Company's 2023
Internal Control
Evaluation Report
complies with the Self-
Regulatory Guidelines
No. 1 for Companies
Listed on
ShenzhenStock
Exchange – Standard
Operations of Main
Board Listed
Companies issued by
the Shenzhen Stock
Exchange and other
relevant documents.The evaluation report
has truthfully and
comprehensively
reflected the actual
situation of the
Company's internal
control system;
5. Reviewed and
approved the Report on
the Performance of
Supervision Duties by
the Accounting Firm in
2023.
Review the
Company's No objections were
April financial raised regarding the
16 2024 statements for Company's financial
the first quarter statements for the first
of 2024. quarter of 2024.Review the Approved the
Company's Company's appointment
appointment of of Mr. NIE Yong as theAugust Mr. NIE Yong Financial Director of16 2024 as the Financial the Company with his
Director of the term of office consistent
Company. with that of the currentsenior management.Review the
Company's No objections were
August semi-annual raised regarding the
19 2024 financial Company's semi-annual
statements for financial statements for
2024.2024.
1. Deliberate on 1. Proposed continuing
DENG the matter of to appoint ShineWing
Chunhua October continuing to Certified Public
WANG 21 2024 appoint Accountants LLP as the
Shuguang ShineWing company's 2024
Certified Public financial statement
59Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Accountants audit firm and internal
LLP as the control audit firm.Company's 2. No objections were
2024 financial raised regarding the
statement audit Company's financial
firm and statements for the third
internal control quarter of 2024.audit firm.
2. Review the
Company's
financial
statements for
the third quarter
of 2024.
1. Reviewed and
approved the Business
Performance
Responsibility
Statement of the
Company's
1. Review the Management Team for
Business 2024 and approved it
Performance submission to the Board
Responsibility of the Directors for
Statement of the deliberation;WANG 2. The remuneration
Shuguang Company'sManagement status of the Company'sYAO Wei directors supervisors
YE March Team for 2024; and senior management
Xingbin 19 2024 2. Review theremuneration disclosed in the 2023LIU Jian
DENG information
annual report is
accurate. The
Chunhua disclosed bydirectors remuneration status
supervisors and disclosed by directors
senior officers supervisors and senior
of the complies with the
Company. Company'sremuneration
Remunerati management system
on and and there have been no
Evaluation 2 cases of violations of
Committee the Company'sremuneration
management system.
1. Deliberate on
and adjust the 1. Approved the
remuneration adjustment of the
standards for remuneration standards
senior officers; for the Company's
2. Review the senior officers;
2023 business 2. Approved the 2023
WANG performance business performance
Shuguang evaluation evaluation results of the
YE results of the Company's management
Xingbin Decemb Company's team;
HUANG er 2 management 3. Approved the 2023
Xinzheng 2024 team; performance-based
LIU Jian 3. Review the annual salary plan for
DENG 2023 the company's
Chunhua performance- management team;
based annual 4. Approve the
salary plan for Company's Payroll
the company's Settlement Plan for
management 2023 and the
team; Company's Payroll
4. Review the Budget Plan for 2024.
Company's
60Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Payroll
Settlement Plan
for 2023 and the
Company's
Payroll Budget
Plan for 2024.Review the Proposed the
appointments of appointments of Mr.Mr. CAO CAO Shiping asLIU Jian President Mr. NIE
YAO Wei Shiping asPresident Mr. Yong as FinancialZHOU Bin August NIE Yong as Director and Mr. LIWANG 16 2024 Financial Chunlei as Secretary ofShuguang Director and the Board of DirectorsDENG Mr. LI Chunlei by the Company withChunhua as Secretary of their terms of office
the Board of consistent with that of
Directors. the current senior
Nominatio officers.n 2 Approved the
Committee nomination of Mr. CAOReview the Shiping and Mr.matter of HUANG Xinzheng as
LIU Jian nominating Mr. candidates for non-
ZHOU Bin CAO Shiping independent directors of
WANG Septemb and Mr. the 10th Session of the
Shuguang er 17 HUANG Board of Directors of
DENG 2024 Xinzheng as the Company and
Chunhua candidates for approved thenon- submission of the
independent proposal to the board
directors. meeting of the
Company for
deliberation.Review the Approved the Proposal
Proposal on the on the Establishment of
LIU Fengxi Establishment a Vehicle-mounted
YAO Wei of a Vehicle- Backlight Joint Venture
ZHOU Bin August mounted by Shenzhen
YE 5 2024 Backlight Joint KONSEMI and Its
Xingbin Venture by Partner and approved
LIU Jian Shenzhen the submission of the
KONSEMI and proposal to the Board
Its Partner. meeting of KonkaGroup for deliberation.Approved the Konka
Review the Group's 14th Five-Year
Konka Group's Strategic Plan (2024
August 14th Five-Year Revision) and approved
Strategy 4 30 2024 Strategic Plan
the submission of the
Committee (2024 revised strategic plan to
ZHOU Bin Revision). the board meeting of
YE Konka Group for
Xingbin deliberation.LIU Jian Approved the Proposal
Review the on the Fixed Asset
Septemb Proposal on the Investment Plan for
er 6 Fixed Asset 2024 and approved the
2024 Investment Plan submission of the
for 2024. proposal to the Boardmeeting of Konka
Group for deliberation.ZHOU Bin Review the Approved the
CAO Decemb Proposal on the submission of the
Shiping er 2 Extension of the Proposal on the
HUANG 2024 Investment Extension of the
Xinzheng Period of Investment Period of
61Full Text of 2024 Annual Report of Konka Group Co. Ltd.
LIU Jian Wuzhen Jiayu Wuzhen Jiayu Fund to
WANG Fund. the Board meeting of
Shuguang Konka Group for
deliberation.VIII. Performance of Duties by the Board of Supervisors
Whether the Board of Supervisors in its oversight activities have identified any risks that the
Company is exposed
□ Yes √ No
The Board of Supervisors has raised no objections to the matters overseen during the reporting
period.IX. Company's employees
1. Number of employees functional composition and educational background
Number of in-service employees in the parent company at the
1503
end of the reporting period
Number of in-service employees in major subsidiaries at the
11855
end of the reporting period
Total number of in-service employees at the end of the
13358
reporting period
Total number of employees receiving remuneration during the
13358
period (in persons)
Number of retired employees for whom the parent company
and major subsidiaries are responsible for bearing the costs (in 0
persons)
Functional composition
Functional composition type Number of functional composition (in persons)
Production staff 6954
Sales staff 3382
Technical staff 1422
Financial staff 570
Administrative staff 1030
Total 13358
Educational background
Educational background Number
Master's degree and above 275
Bachelor's degree 2758
Vocational and technical college degree 3802
High school diploma or below 6523
Total 13358
2. Remuneration policy
The Company has formulated a remuneration system based on the business strategy that serves
the development and improvement of the Company guided by the principles of determining salaries
according to positions and setting salaries based on performance and capabilities while balancing
62Full Text of 2024 Annual Report of Konka Group Co. Ltd.
market competitiveness and internal equity. Employee remuneration levels are determined based on
the Company's profitability the positions held and the performance achievements.
3. Training program
The Company has adhered to a people-oriented approach placed great emphasis on talent
development and actively organizes various training activities centered on the actual development
of the Company's strategic business continuously improved the Company's talent cultivation
system to enhance employees' professional skills and overall quality.In 2024 against the backdrop of the "One Axis Two Wheels Three Drivers" new development
framework strategy the Company has adhered to the principle of the Party overseeing talent
management. With the implementation of lean management as a prerequisite the Company has
continuously carried out various tasks in three aspects namely "promoting the implementation of
the strategy supporting business transformation and coordinating talent development". Centering
around the "Three Levels Seven Brands" project operation system the Company has organized and
carried out year-round projects such as Konka Open Courses for all employees. For campus recruits
and social hires it has respectively organized and carried out new employee onboarding training
programs. In addition in order to continuously strengthen professional development and empower
business development it has continuously carried out professional training targeted at marketing
research and development manufacturing and other line functions.
4. Labor outsourcing
□Applicable √ Not applicable
X. The Company's Profit Distribution and the Conversion of Capital Reserve into
Share Capital
The formulation implementation or adjustment of the profit distribution policy particularly
the cash dividend policy during the reporting period
√ Applicable □ Not applicable
The Company's cash dividend policy is clearly stipulated in the Articles of Association with
explicit and clear dividend standards and ratios. The relevant decision-making procedures and
mechanisms are well-established. The independent directors of the Company have diligently
performed their duties and played their due roles providing minority shareholders with ample
opportunities to express their opinions and demands and effectively safeguarding the legitimate
rights and interests of minority shareholders. The Company has strictly adhered to the cash dividend
policy stipulated in the Articles of Association and the cash dividends distributed by the Company
are in compliance with the provisions of the Articles of Association and the requirements of the
resolutions of general meetings of shareholders.In accordance with the requirements of the Regulatory Guidelines for Listed Companies No. 3
- Cash Dividends of Listed Companies issued by the China Securities Regulatory Commission the
63Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Company has revised the profit distribution policy stipulated in the Articles of Association further
clarifying the provisions on priority of cash dividends in profit distribution and the proportion of
cash dividends in profit distribution etc. To further standardize the Company's shareholder return
mechanism the Company has promoted the establishment of a scientific sustainable and stable
shareholder return mechanism to enhance the transparency and operability of profit distribution
policy decisions and effectively protect the legitimate rights and interests of public investors.Special explanations on the cash dividend policy
Whether it is in compliance with the Company's Articles of Association and resolutions of general meetings
Yes
of shareholders
Whether the dividend standards and ratios are explicit and clear: Yes
Whether the relevant decision-making procedures and mechanisms are complete Yes
Whether the independent directors have performed their duties diligently and played their due roles: Yes
If the Company has not distributed cash dividends it should disclose the specific reasons and the measures
Not applicable
it plans to take next to enhance the level of investor returns:
Whether minority shareholders have been given ample opportunities to express their opinions and demands
Yes
and whether their legitimate rights and interests have been fully protected:
Whether the conditions and procedures have been compliant and transparent if the cash dividend policy has
Yes
been adjusted or changed:
The Company was profitable during the reporting period and the parent company's profits
available for distribution to shareholders were positive but no cash dividend distribution plan was
proposed
□ Applicable √ Not applicable
The profit distribution and the conversion of capital reserve into share capital during the
reporting period
□ Applicable √ Not applicable
The Company plans not to distribute cash dividends issue bonus shares or convert capital
reserve into share capital for the year.XI. Implementation of the Company's equity incentive plan employee stock ownership
plan (ESOP) or other employee incentives
□Applicable √ Not applicable
None.XII. Construction and Implementation of Internal Control Systems during the
Reporting Period
1. Construction and implementation of internal control systems
In accordance with the relevant regulations of the China Securities Regulatory Commission
and the Shenzhen Stock Exchange the Company has established and improved its internal control
system by adhering to the fundamental principles of internal control and tailoring them to the actual
circumstances of the Company. The Company's Financial Audit Committee and the Supervisory
Audit and Legal Affairs Center guided by value management and aiming to strengthen risk control
64Full Text of 2024 Annual Report of Konka Group Co. Ltd.
have continuously enhanced audit supervision and internal control evaluation overseeing and
assessing the Company's internal control management. The Company's Self-Evaluation Report on
Internal Control for 2024 has comprehensively truthfully and accurately reflected the actual
situation of the Company's internal control and no major deficiencies or significant deficiencies in
the Company's internal control have been identified during the reporting period.
2. Details of major deficiencies in internal control identified during the reporting
period
□ Yes √ No
XIII. Management and Control over Subsidiaries by the Company for the Reporting
Period
Issues Measures
Integration encountered already taken to Progress of the Follow-up
Name Integration plan
progress during address the resolution resolution plans
integration issues
Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
XIV. Internal Control Evaluation Report or Internal Control Audit Report
1. Internal evaluation report
Date of full-text disclosure of the internal control evaluation report April 15 2025
Index to the full-text disclosure of the internal control evaluation
Http://www.cninfo.com.cn/new/index
report
Total assets of the units included in the evaluation scope as a
percentage on the total assets in the Company's consolidated financial Over 90.00%
statements
Revenue of the units included in the evaluation scope as a percentage
on the total revenue in the Company's consolidated financial Over 90.00%
statements
Deficiency identification criteria
Type Financial reporting Non-financial reporting
Deficiencies with the following characteristics are identified as The following are indications that there may
major deficiencies: (1) Discovery of fraudulent acts by the be major deficiencies in non-financial
Company's directors supervisors and senior management that have reporting-related internal controls: (1)
a material impact on the financial reports; (2) The Company's Serious violations of national laws and
alteration of published financial reports to reflect the correction of regulations by the Company's business
material misstatements resulting from the fraud or error; (3) The activities; (2) Very frequent exposure of
discovery by the certified public accountant of a material negative news in the media that may cause
misstatement of a current period's financial reports and the failure of significant damage to the Company's
the internal controls to detect the misstatement during their reputation; (3) The departure of the core
Qualitativ operation; (4) Ineffective oversight of internal controls by the management team in droves or a serious
e criteria Company's financial audit committee and internal audit turnover of personnel in key positions; (4)
organization; (5) Major deficiencies identified in the evaluation of Lack of institutional control or systematic
internal controls not corrected after a reasonable period of time; (6) failure of systems in important businesses;
Lack of institutional controls over significant operations or systemic (5) Major deficiencies identified in the
failures of the system. Deficiencies with the following internal control evaluation have not been
characteristics are recognized as significant deficiencies: (1) Failure rectified in a timely manner. The following
to select and apply accounting policies in accordance with generally are indications that there may be significant
accepted accounting principles; (2) Failure to establish anti-fraud deficiencies in non-financial reporting-
procedures and control measures; (3) Failure to establish related internal controls: (1) Relatively
corresponding control mechanisms or implement them for the frequent appearance of negative news in the
65Full Text of 2024 Annual Report of Konka Group Co. Ltd.
accounting treatment of non-routine or extraordinary transactions media that may cause considerable damage
and lack of corresponding compensatory controls; (4) One or more to the Company's reputation; (2) Relatively
deficiencies in controls over the process of preparing the financial serious turnover of personnel in key
statements at the end of the period; no reasonable assurance that the positions; (3) Significant deficiencies in
prepared financial statements achieve the objectives of truthfulness important business control systems; (4)
and accuracy; (5) Significant deficiencies identified in the internal Significant deficiencies identified in the
control evaluation have not been corrected after a reasonable period internal control evaluation have not been
of time. Other internal control deficiencies that do not meet the rectified in a timely manner. Other internal
criteria for major or significant deficiencies are classified as general control deficiencies that do not meet the
deficiencies. criteria for major or significant deficiencies
are classified as general deficiencies.Major deficiencies: potential misstatements amounting to ≥ 1% of
the gross profit amount of the Company's consolidated financial
statements for 2024. Significant deficiencies: 0.5% of the gross
profit amount of the Company's consolidated financial statements Implement in accordance with the
Quantitati
for 2024 ≤ the amount of potential misstatement < 1% of the gross quantitative criteria of internal control defect
ve criteria
profit amount of the Company's consolidated financial statements evaluation in financial statements
for 2024. General deficiencies: Potential misstatements amounting
to < 0.5% of the gross profit amount of the Company's consolidated
financial statements for 2024.Number of major deficiencies in
0
financial reporting (counts)
Number of major deficiencies in non-
0
financial reporting (counts)
Number of significant deficiencies in
0
financial reporting (counts)
Number of significant deficiencies in
0
non- financial reporting (counts)
2. Internal control audit report
√ Applicable □ Not applicable
Opinion paragraph in the internal control audit report
Konka Group Co. Ltd. has maintained in all material aspects effective internal control over financial reporting as of December
31 2024 in accordance with the Basic Standards for Enterprise Internal Control and relevant regulations.
Disclosure of the internal control audit report Disclosure
Disclosure date of the full text of the internal control audit
April 15 2025
report
Disclosure index of the full text of the internal control audit
Http://www.cninfo.com.cn/new/index
report
Type of internal control audit report opinion Standard unqualified opinion
Whether there are any major deficiencies in non-financial
No
reporting
Whether the accounting firm has issued an internal control audit report with a non-standard
opinion
□ Yes √ No
Whether the internal control audit report issued by the accounting firm is consistent with the
opinion of the Board of Directors' self-assessment report
√ Yes □ No
66Full Text of 2024 Annual Report of Konka Group Co. Ltd.
XV. Rectification of Issues Identified by Self-inspection in the Special Action on the
Governance of Listed Companies
The Company has completed the self-inspection in accordance with the relevant requirements
of the China Securities Regulatory Commission and has rectified the issues identified during the
self-inspection.
67Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Section V Environmental and Social Responsibilities
I. Major environmental issues
Whether the listed company and its subsidiaries are classified as key pollutant-discharging
units announced by the environmental protection department
√ Yes □ No
Environmental protection related policies and industry standards
The Company implements environmental protection laws and regulations such as the
Environmental Protection Law of the People's Republic of China the Water Pollution Prevention
and Control Law of the People's Republic of China the Air Pollution Prevention and Control Law
of the People's Republic of China the Environmental Noise Pollution Prevention and Control Law
of the People's Republic of China and the Solid Waste Pollution Prevention and Control Law of the
People's Republic of China The standards for water pollutant discharge including the Emission
Standard of Pollutants for Electroplating (DB44/1597-2015) and the Standard for Discharge Limits
of Water Pollutants in Guangdong Province (DB44/26-2001) and the standards for atmospheric
pollutant discharge including the Emission Standard of Air Pollutants for Printing Industry
(DB44/815-2010) the Emission Standard of Pollutants for Electroplating (GB21900-2008) the
Emission Standards for Odor Pollutants (GB14554-93) the Standard for Fugitive Emission of
Volatile Organic Compounds (GB37822-2019) the Technical Specification for Setting
Identification Signs of Hazardous Waste (HJ1276-2022) and the Standard for Pollution Control on
Hazardous Waste Storage (GB18597-2023).Administrative license for environmental protection
1. Xingda Hongye
Xingda Hongye obtained the approval from the Zhongshan Bureau of Ecology and
Environment (ZSBEE) in 2004 (ZHJ [2004] No. 61) for the construction and commissioning of its
project in Zhongshan. Later it successively obtained the approvals with Document Nos. ZHJD
[2008] No. 06250 and ZHJD [2010] No. 04469 in 2008 and 2010 respectively. Since the original
project of Xingda Hongye was put into operation it has been accepted in two phases. Phase I was
accepted in 2008 (HY [2008] No. 02) and Phase II was accepted in 2012 (ZHYR [2012] No.
000092).
In December 2012 Xingda Hongye commissioned the Zhongshan Institute of Environmental
Protection Science to conduct the environmental impact assessment for the technical transformation
and expansion project of Xingda Hongye. On December 31 2012 the Company obtained the
approval document from the Zhongshan Bureau of Ecology and Environment (ZSBEE) Approval
of the Environmental Impact Assessment Report for the Technical Transformation and Expansion
68Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Project of Guangdong Xingda Hongye Electronics Co. Ltd. (ZHJS (2012) No. 115) approving the
increase in the production of six-layer circuit boards eight-layer and above circuit boards and HDI
boards after the technical transformation and expansion and the reduction in the production of
single-layer circuit boards. After the technical transformation and expansion the total production
capacity will be 200000 square meters/year for single-layer circuit boards 250000 square
meters/year for double-layer circuit boards 300000 square meters/year for four-layer circuit boards
200000 square meters/year for six-layer circuit boards 150000 square meters/year for eight-layer
and above circuit boards and 100000 square meters/year for HDI boards. For the technical
transformation and expansion project the original electroplating equipment and electroplating
processes will remain unchanged and a brown oxidation process on the basis of the existing
production process will be added; All additional electroplating capacity will be outsourced for
processing. The technical transformation and expansion project started construction in 2013 and
was completed in January 2018. The commissioning period was from February 10th to July 8th
2018. The construction of the expansion project complies with the requirements of the
environmental impact assessment approval and meets the conditions for the completion acceptance
of the environmental protection of the construction project. Renewal/replacement of National
Pollutant Discharge Permit in 2021 Permit No.: 91442000768405216J001P. Change of National
Pollutant Discharge Permit in 2022 Permit No.: 91442000768405216J001P. Change of National
Pollutant Discharge Permit in 2023 Permit No.: 91442000768405216J001P.
2. Boluo Konka and Boluo Konka Precision
In 2000 Boluo Konka obtained the approval from the Huizhou Bureau of Ecology and
Environment (HSHJ [2000] No. 23) and put its project into operation in the same year with the
Pollutant Discharge Permit No. 91441322721121283N001U.In January 2007 Boluo Konka entrusted Huizhou Environmental Science Institute to carry out
environmental impact assessment of its expansion project and on February 8 2007 obtained the
Letter of Approval Opinions on the Environmental Impact Assessment Report of Boluo Konka
Double-sided and Multi-layer Board Project (HSHJ [2007] No. J32) from Huizhou Environmental
Protection Bureau which approved the addition of double-sided and multi-layer circuit boards after
the expansion of the project. After the expansion the total productive capacity of single-sided
circuit boards was 1 million square meters/year and that of double-sided multi-layer circuit boards
was 650000 square meters/year. Electroplating equipment and electroplating processes were added
to the expansion project. The construction of the expansion project met the EIA approval opinions
and the environmental protection acceptance conditions for the completion of the construction
project. In the same year the Pollutant Discharge Permit was obtained. The above project was later
registered and renamed as Boluo Konka Precision. Boluo Konka Precision obtained the National
Pollutant Discharge Permit in 2020 Permit No.: 91441322799316208F001V. Boluo Konka
69Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Precision will produce 1.65 million square meters per year of double-sided and multilayer circuit
boards upon the Department of Ecology and Environment of Guangdong Province's approval of the
Report on the Environmental Impact of the Circuit Boards Expansion Project with an Annual
Capacity of 1 million square meters (YHSH [2023] No. 124) in June 2023.The regulations for industrial emissions and the particular requirements for controlling
pollutant emissions those are associated with production and operational activities.Number Distributi
Type of Name of Discharge Discharge
Name of Way of of on of Total Approved total Excessive
major major concentration/i standards
polluter discharge discharge discharge discharge discharge discharge
pollutants pollutants ntensity implemented
outlets outlets
PH6-9; Total
copper ≤ 0.3
mg/L;
PH total
COD≤50mg/L;
copper
Ammonia
COD Total discharge
nitrogen ≤ 8
ammonia of main
mg/L; Total
nitrogen pollutants:
nitrogen ≤ 15
total COD19.061250
mg/L; Total
nitrogen Main tons/year;
Discharge phosphorus ≤ GB 21900-2008
Pollution total discharge Ammonia
of 0.5 mg/L; Total Discharge
XingDa sources of phosphorus outlet of 497835 nitrogen 3.0498
stationary 1 cyanide ≤ 0.2 Standard For None
HongYe waste total the waste tons/year tons/year; Total
pollution mg/L; Total Pollutants From
water cyanide water nitrogen
sources nickel ≤ 0.1 Electroplating
total nickel station 32.9792
mg/L; Total
total iron tons/year; Total
iron ≤ 2 mg/L;
total phosphorus
Total aluminum
aluminum 0.2082
≤ 2 mg/L;
petroleum tons/year;
Petroleum ≤ 2
suspended
mg/L;
solids
Suspended
solids ≤ 30
mg/L;
Sulfuric acid Emission Total discharge:
mist ≤ 30 Standard for 2986560000
Sulfuric acid mg/m3; NOx ≤ Electroplating standard
fume 200 mg/m3; Pollutants cube/year (note:
hydrogen Hydrogen GB21900-2008 the total
chloride Three on chloride ≤ 30 Air Emission discharge from
formaldehyd the roof of mg/m3; Limits Table 5 all types of
e hydrogen plant 1 Hydrogen Emission sources of
Discharge
cyanide ten on the cyanide ≤ 0.5 Standard of Air 2986560 exhaust gases is
of
XingDa Waste gas nitrogen roof of mg/m3; Pollutants for 000 not specified in
stationary 14 None
HongYe pollutants oxide plant 2 TVOC≤120mg/ Printing standard the latest
pollution
ammonia and one m3; Benzene ≤ Industry cube/year National
sources
benzene on the 1 mg/m3; (DB44/815- Pollutant
toluene+xyle roof of the Toluene + 2010) ; Discharge
ne TVOC canteen xylene ≤ 15 Guangdong Air Permit for
tin and its mg/m3; Tin Pollutant 2021
compounds and its Emission calculated
PM(dust) compounds ≤ Standard based on air
8.5 mg/m3; DB44/27-2001 volume in
Particulate the Second environmental
70Full Text of 2024 Annual Report of Konka Group Co. Ltd.
matter (dust) ≤ Level Standard impact
120 mg/m3; in the Second assessment)
Period
Emission
Standard for
Odor Pollutants
(GB 14554-
1993) Table 2
Standard
1. Discharge
standards on
sewage
discharge
permission:
Table 1 Pearl
River Delta
Discharge
Standard of the
Discharge
1. Discharge
Standard of
standard of
Water Pollutants
pollutant
for
discharge
Electroplating
certificate:
(DB44/1597-
copper ≤ 0.5
2015)
mg/L; COD ≤
Guangdong
80 mg/L;
Provincial Pollutant
ammonia
Water Pollutant COD19.2
nitrogen ≤ 10
Discharging tons/year;
PH copper mg/L; total
Boluo Limit Standard 318300 Ammonia
COD Main nitrogen ≤ 20
Konka Discharge (DB44/26- tons/year nitrogen 2.4
Pollution ammonia discharge mg/L; and total
and of 2001); 2. Local Remarks: tons/year; Total
sources of nitrogen outlet of phosphorus ≤ 0.Boluo stationary 1 emission according nitrogen 4.8 None
waste total the waste 5 mg/L;
Konka pollution standards: to tons/year
water nitrogen water 2. Local
Precisio sources BFBH [2019] discharge Remarks:
total station emission
n No. 58 permit according to the
phosphorus standard:
document: pollutant
copper ≤ 0.5
COD NH3-H discharge
mg/L;
TP Class IV certificate
COD≤30mg/L;
Water Standard
Ammonia
of
nitrogen ≤ 1.5
Environmental
mg/L; Total
Quality
nitrogen ≤ 10
Standards for
mg/L; Total
Surface Water
phosphorus ≤
(GB3838-2002)
0.3 mg/L
and TN
emission meets
50% of the
emission
concentration
limit
requirements of
the
corresponding
industry
Boluo Waste gas Sulfuric acid Discharge Six on the Sulfuric acid Emission The total
20 sets / None
Konka pollutants fume of roof of mist ≤ 30 Standard for discharge is not
71Full Text of 2024 Annual Report of Konka Group Co. Ltd.
and hydrogen stationary plant 1 mg/m3; NOx ≤ Electroplating stated in the
Boluo chloride pollution fourteen 200 mg/ m3; Pollutants latest version of
Konka formaldehyd sources on the Hydrogen GB21900-2008 National
Precisio ehydrogen roof of chloride ≤ 30 Air Emission Pollutant
n cyanide plant 2 mg/ m3; Limits Table 5 Discharge
nitrogen and one in TVOC≤90mg/ Guangdong Air Permit in 2020
oxide sewage m3; Benzene ≤ Pollutant
ammonia station 12 mg/ m3; Emission
benzene Toluene ≤ 40 Standard
methylbenze mg/m3; Xylene DB44/27-2001
ne TVOC ≤ 70 mg/m3; the Second
tin and its Tin and its Level Standard
compounds compounds ≤ in the Second
PM (dust) 8.5 mg/m3; Period
oil fume Particulate Emission
matter (dust) ≤ standard for
120 mg/m3; Oil Odor Pollutants
fume ≤2mg/m3 (GB 14554-
1993) Table 2
Standard
Emission
standard of
cooking fume
(GB18483-
2001)
Treatment of pollutants
1. Xingda Hongye
All production equipment of Guangdong Xingda Hongye Electronics Co. Ltd. has been set up
with supporting environmental protection facilities according to the requirements of environmental
impact assessment. The discharge of wastewater waste gas and noise as well as the disposal of all
solid wastes in the Company all met the standards during the Reporting Period.The sewage treatment centre of Guangdong Xingda Hongye Electronics Co. Ltd. with an
investment of about RMB15 million was formally put into production in June 2007 and the
treatment capacity of the sewage treatment facility was 2566 tons/day. After technical improvement
and expansion the capacity increased to 2900 tons/day with the treatment process remaining
unchanged. In 2022 RMB20 million was invested to increase a set of sewage treatment facility
which had been put into operation so as to ensure stable discharge of sewage up to standard.Currently the sewage treatment facilities are functioning well and the main pollutant discharge
meets the discharge standards and environmental assessment standards. The pollutants are
discharged to Fushachong after being treated at the self-built sewage treatment station.
2. Boluo Konka and Boluo Konka Precision
All production equipment of Boluo Konka and Boluo Konka Precision has been reported for
environmental assessment review and approval. The supporting environmental protection and
pollution control facilities have been designed by pollutant type and concentration and effectively
operated in a targeted manner. During the Reporting Period the discharge standards were met in
72Full Text of 2024 Annual Report of Konka Group Co. Ltd.
terms of industrial waste water exhaust and factory noise and all industrial waste generated was
disposed of in compliance with environmental laws and regulations.Boluo Konka was established in 2000. To manufacture single sided PCBs it invested
approximately RMB 5 million in constructing a sewage treatment station without the biochemical
treatment function and featuring a discharge capacity of 300 tons per day. In 2007 Boluo Konka
expanded its factory by starting the Phase II project which was submitted for environmental
assessment as Boluo Konka PCB Double Sided and Multi-Layer PCB Project (later the project
owner was changed into Boluo Konka Precision). It spent about RMB 10 million on constructing
the Phase II sewage treatment station to add the biochemical treatment function with a discharge
capacity of 800 tons per day.In 2019 according to the documents issued by Boluo County Ecology and Environment
Bureau the two sewage treatment stations of Boluo Konka and Boluo Konka Precision must be
upgraded towards higher standards. Through comprehensive assessment of the professional
environmental protection company it was decided that the sewage treatment stations of the said
companies be combined to meet the upgrading requirements. Boluo County Ecology and
Environment Bureau approved the combination of the discharge outlets of the aforementioned
companies and Boluo Konka would appoint Boluo Konka Precision to treat sewage. After the
combination of discharge outlets the discharge capacity would reach 1100 tons per day. The
aforementioned two companies spent about RMB 20 million between 2019 and 2020 on upgrading
the sewage treatment stations towards higher standards and added industrial advanced processes
and treatment systems such as RO water treatment Fenton oxidation and MBR films. After the
technical transformation and expansion the sewage treatment reaches 2200 tons per day (with a
discharge capacity of 1100 tons per day) with a reuse rate of more than 60%. In 2023 the BOT
mode was adopted and about RMB 25 million was invested to expand the sewage station to
achieve a treatment capacity of 2800 tons/day and a reuse rate of more than 60%. After the
expansion the effective pool capacity of the Boluo Konka sewage treatment system reached
14000m3 further refining the sewage treatment process consolidating the treatment effect and
increasing emergency pool area by about 1000m3. At present the waste water treatment facilities
are operating in good conditions; the discharge of major pollutants meets the discharge standards.After advanced treatment of the water reuse facilities the water treated by the sewage stations that
meets the standards will be reused in the plants while the remaining water will be discharged to the
municipal pipe network to be processed by the urban and rural water treatment factory before being
discharged to the Gongzhuang Rive section of Dongjiang River.Environmental self-monitoring plan
1. Xingda Hongye
According to the requirements of the Environmental Protection Administration Xingda
73Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Hongye attaches great importance to environmental monitoring management. Thus pursuant to the
Measures for Self-Monitoring and Information Disclosure of National Key Monitored Enterprises
the Report on the Environmental Impact of the Technical Transformation and Expansion Project of
Guangdong Xingda Hongye Electronics Co. Ltd. and the reply opinions for environmental impact
assessment the Company has formulated the Enterprise Environmental Self-Monitoring Plan and
reported to the municipal environmental protection bureau for approval and record. It implements
online monitoring for the PH COD and ammonia nitrogen pollutants discharged in wastewater
through real-time monitoring and an automatic frequency of every two hours entrusts the qualified
third-party online monitoring equipment operation and maintenance institute to carry out periodic
maintenance on automatic monitoring equipment and monitoring data networking equipment and
entrusts the qualified third-party monitoring unit to carry out the “three wastes” project monitoring
based on the latest National Pollutant Discharge Permit issued and reported enterprise self-
monitoring plans. All self-monitoring plan results will be reported and disclosed on public
platforms on a periodic basis.In the case of normal production the results will be updated on a daily basis with online
monitoring data are disclosed in real time or manual monitoring data on a monthly and quarterly
basis are disclosed every two hours.
2. Boluo Konka and Boluo Konka Precision
According to the requirements of the Environmental Protection Administration Boluo Konka
and Boluo Konka Precision attach great importance to environmental monitoring management.Thus pursuant to the Measures for Self-Monitoring and Information Disclosure of National Key
Monitored Enterprises and the requirements for environmental impact assessment the Company
has formulated the Enterprise Environmental Self-Monitoring Plan and reported to the municipal
environmental protection bureau for approval and record. It implements online monitoring for the
PH COD ammonia nitrogen total phosphorus and other pollutants discharged in wastewater
through real-time monitoring and an automatic frequency of every two hours entrusts the qualified
third-party online monitoring equipment operation and maintenance institute to carry out periodic
maintenance on automatic monitoring equipment and monitoring data networking equipment and
entrusts the qualified third-party monitoring unit to carry out the "three wastes" project monitoring
based on the latest National Pollutant Discharge Permits issued and reported enterprise self-
monitoring plan. All self-monitoring plan results will be reported and disclosed on public platforms
on a periodic basis.In the case of normal production the results will be updated on a daily basis with online
monitoring data are disclosed in real time or manual monitoring data on a monthly and quarterly
basis are disclosed every two hours.Contingency plan for emergent environmental incident
74Full Text of 2024 Annual Report of Konka Group Co. Ltd.
1. Xingda Hongye
In strict accordance with requirements of laws regulations and relevant documents such as
Law of the People’s Republic of China on Emergency Response and Interim Measures on
Environmental Emergency Response Plan Guangdong Xingda Hongye Electronics Co. Ltd. has
established risk prevention measures and emergency response plans kept its emergency equipment
in a normal state formulated the Contingency Plan for Emergent Environmental Incident and put
on records at Zhongshan Bureau of Ecology and Environment Guangdong Province record No.:
4420002017044M. In addition the Company conducts a drill of major environmental pollution
incident on its factory to enhance its emergency response capabilities for emergent environmental
pollution incidents.Furthermore Guangdong Xingda Hongye Electronics Co. Ltd. has built an emergency pool
(600m3 underground pool of sewage treatment station) and set up a fire pool (500m3 and located
on Floor 1 of Factory Building No. 2) which serve as temporary storage pools for exterior drainage
or fire drainage to eradicate accidental discharge of wastewater in the case of failed operation of the
sewage transmission pipeline or fire accident due to outage or other special circumstances. The
sewage transmission pipeline has been equipped with anti-corrosion and cathodic protection using
anti-corrosion pipes and carbon steel pipes. Pursuant to the new discharge standards the related
discharge pipeline has been modified and the production department has been required to discharge
strictly in accordance with discharge standards to cut the costs of wastewater treatment. Different
types of wastewater are normally and properly treated through fine shunting. The chemical liquid
tank shall be managed by special personnel and the supplier shall timely pull the liquid medicine
for reasonable control and requirements of the workshop sewage And prepare gas masks boots
submersible pumps and other emergency rescue tools.
2. Boluo Konka and Boluo Konka Precision
Boluo Konka and Boluo Konka Precision strictly abides by Emergency Response Law of the
People's Republic of China Interim Measures for the Management of Emergency Plans for
Unexpected Environmental Incidents other related laws and regulations as well as the requirements
of relevant documents. They have established risk prevention measures and emergency plans such
as Emergency Plan for Unexpected Environmental Incidents and have their emergency equipment
run in a normal status. In addition they have filed with Boluo County Branch of Ecology and
Environment Bureau in Huizhou Guangdong and Huizhou Ecology and Environment Bureau
respectively with the file No.441322-2024-0011-M and 441322-2024-0396-M. They organize all
staff to conduct drills for major environmental pollution incidents every year to improve their
ability for the emergency response to unexpected environmental pollution incidents.Boluo Konka and Boluo Konka Precision are fully equipped with emergency response
facilities with an industrial wastewater emergency pool of about 1500m3 (the underground pool of
75Full Text of 2024 Annual Report of Konka Group Co. Ltd.
the sewage station) and a fire pool of 300m3 (next to the staff dormitory building). In case of
environmental emergencies such as pipe burst and leakage of wastewater conveying pipes or
failure to operate normally the wastewater emergency pool shall be used as an emergency
temporary storage pool for industrial wastewater to prevent industrial wastewater accidents; In case
of a fire safety incident the fire pool shall be used for emergency. All departments are required to
discharge pollutants strictly in accordance with pollutant discharge standards to reduce the costs of
waste water treatment by properly and reasonably dividing solution and waste water discharged
from the plants. The chemical warehouse shall be managed by special personnel and the supplier
shall carry out standardized control and requirements when loading and unloading chemicals;
Emergency supporting materials: prepare gas masks acid and alkali resistant water shoes gloves
goggles safety ropes helmets fire sand submersible pumps and other emergency rescue tools.Input in environmental governance and protection and payment of environmental protection
tax
From January to December 2024 the Company invested about RMB 29.407 million in
environmental treatment and protection and paid RMB 23700 in environmental protection tax
from January to December 2024.Measures taken to decrease carbon emission in the Reporting Period and corresponding effects
√ Applicable □ Not applicable
The Company and its affiliated enterprises practiced the concept of green development
adopted measures such as the use of green energy process improvement transformation and
elimination of high energy consumption equipment and the carbon dioxide emissions decreased by
10.61% year-on-year.
No administrative punishments were received in the Reporting Period due to environmental
issues.No administrative punishments were received in the Reporting Period due to environmental
issues.Other environmental information that should be disclosed
1. Xingda Hongye
The environmental protection investment of Xingda Hongye from January to December 2024
was approximately RMB 17 million mainly used for the depreciation in Environmental governance
equipment and facilities treatment of sewage waste gas and solid waste as well as the maintenance
and upgrading of environmental protection equipment.
2. Boluo Konka and Boluo Konka Precision
The total environmental protection investment of Boluo Konka and Boluo Konka Precision in
2024 was about RMB 11 million which was mainly used for the daily treatment cost of wastewater
and waste gas and facility maintenance cost. In addition Boluo Konka and Boluo Konka Precision
76Full Text of 2024 Annual Report of Konka Group Co. Ltd.
disclosed environmental related information such as industrial sewage waste gas noise and solid
waste on environmental protection platforms such as Guangdong Solid Waste Environmental
Supervision Information Platform National Pollutant Discharge Permit Management Information
Platform - Enterprise Portal Guangdong Whole-process IoT Automatic Monitoring Platform for
Pollution Sources - Enterprise Portal Environmental Statistics Business System Platform and
Automatic Monitoring and Basic Database System for Key Pollution Discharge Units (Enterprise
Portal).Other Environmental Information
According to the examination by the Company the Company and its other holding subsidiaries
are not key pollutant units. All have faithfully implemented the laws and regulations related to
environmental protection such as Environmental Protection Law of the People's Republic of China
Water Pollution Prevention and Control Law of the People's Republic of China Air Pollution
Prevention and Control Law of the People's Republic of China Environmental Noise Pollution
Prevention and Control Law of the People's Republic of China and Solid Waste Pollution
Prevention and Control Law of the People's Republic of China in the daily production and operation.II. Social Responsibilities
The Company insists the principle of health stability and sustainable development to benefit
shareholders and employees and satisfy customers. In pursuit of economic profits and protection of
shareholders’ profits the Company is active in protecting legal rights of debtors and employees
treating suppliers customers and consumers in good faith and participating in environmental
protection and community establishment for harmonious development of the Company and society.
1. To protect rights of shareholders and creditors
(1) The Company protects rights of shareholders
The Company insists protection of rights for all shareholders especially equal status and legal
rights for minority shareholders and make insurance of rights to be informed participation and vote.The Company actively performs its obligation of information disclosure to ensure the timely
accurate and complete disclosure of information; And strictly implements the insider registration
and inside information confidentiality system to ensure the fairness of information disclosure.The Company pays attention to repay to shareholders and insists on mutual development with
investors. The Company has strictly adhered to the cash dividend policy stipulated in the Articles of
Association and the cash dividends distributed by the Company are in compliance with the
provisions of the Articles of Association and the requirements of the resolutions of general meetings
of shareholders.
(2) The Company protects rights of creditors
In full consideration of legal rights of creditors the Company complies with strict business
rules of credit cooperation to guarantee legal rights of creditors. No damages upon rights of
77Full Text of 2024 Annual Report of Konka Group Co. Ltd.
creditors happened.
2. The Company performs responsibilities to suppliers and customers
(1) It is devoted to improve customer service quality.
The Company is insisting philosophy of customer orientation to strengthen customer service
management service consciousness for employees service levels and to protect rights for
customers. Through customer service hot-line field visit and follow-up service the Company has
set a good corporate image for customers.
(2) Be honest to suppliers
Following the principle of integrity and mutually beneficial cooperation the Company keeps
good cooperative relations with suppliers at each level. The corporate principle is open fair and
impartial to standardize procurement protect suppliers’ legal rights and lay solid foundation for
further cooperation.
3. Be enthusiastic to social and public welfare undertakings
Based on the principle of appreciating and repaying the society the Company has participated
in all kinds of activities for public welfare cooperated with society undertaken social
responsibilities actively and promoted harmonious development between enterprise and society.
4. Be responsible for employees
The Company insists the principle of people orientation to improve working environment
promote occupational skills provide opportunity and platform for development and growth and
encourage self upgradation and realization for employees. Mutual improvement for employees and
enterprise could be achieved.
(1) Be honest and law-abiding to protect legal rights for employees
The Company would strictly comply with laws and regulations in Labor Law and Labor
Contract Law to sign labor contract with employees with fair treatment in employment payment
training promotion dismissal and retirement. Also the Company would pay all kinds of insurances
and housing fund for employees. Regular physical examination would be organized for each year.Any problems found would require re-examination and consultation from a doctor.The Company would improve living quality; enhance cohesive force and sense of belongings
through a series of safeguard measures.
(2) To protect occupational health for employees
On the one hand the Company objectively and effectively guarantees the personal safety and
occupational health of employees from the system by establishing and improving the safety system
organizing relevant learning and strict safety assessment; On the other hand through vigorous
publicity of safety knowledge safety awareness is deeply rooted in the hearts of the people so that
employees can abide by safety regulations spontaneously and consciously and play a positive
subjective role in ensuring their own occupational health and production safety.
78Full Text of 2024 Annual Report of Konka Group Co. Ltd.
(3) To promote occupational skills by diversified professional training
The Company has always paid great attention on diversified training for employees. On the
one hand the Company is meticulous in the training of routine business and vocational skills and
actively implements it in strict accordance with relevant national regulations to ensure the
improvement of employees' business level and improves employees' vocational skills through
normalized regular training management; On the other hand the Company provides employees with
more colorful training programs through independent training platforms training lecturers special
training lectures etc. so that employees can effectively improve their overall professional quality
and comprehensive quality in addition to their own work.
5. Be responsible for environment
The Company concerns about environmental changes and close relationships with
environment by creating low carbon economy in technical innovation from green manufacturing
green products to green industry circular economy. The Company would provide efforts in
protecting global ecological environment.Subsequently the Company would undertake all social responsibilities by improving strategic
management sustainable development and enterprise economic efficiency. It would reattribute all
shareholders and would protect legal rights for creditors and employees. To be honest to suppliers
and customers the Company would serve local economic development and participate in social
public welfare activities and environment protection. It would undertake all responsibilities in many
fields and make attributions to social economic and environmental sustainable development for a
socialism harmonious society.III. Consolidation and Expansion of Poverty Alleviation Outcomes and Rural
Revitalization
In 2024 the Company continued to actively purchase the agricultural and sideline products
from Sansui and Tianzhu counties in Guizhou Province under the "assistance by consumption"
project. The total amount spent on this project in 2024 amounted to RMB 246400. In August 2024
the Company held the "one-to-one" pairing support donation ceremony with students in the two
counties. More than 100 Konka "dream partners" donated a total of RMB 240000 and conducted
in-depth visits to the aided students. Representatives of the paired employees talked with the
students "hand in hand face to face and heart to heart" providing financial assistance material
support and educational inspiration for them.
79Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Section VI Important Matters
I Fulfillment of Commitments
1. Commitments of the Company’s De Facto Controller Shareholders Related Parties
and Acquirers as well as the Company Itself and Other Entities Fulfilled in the Reporting
Period or Ongoing at the Period-End
□Applicable √ Not applicable
None.
2. Where there Had Been an Earnings Forecast for an Asset or Project and the
Reporting Period Was still within the Forecast Period Explain why the Forecast Has Been
Reached for the Reporting Period.□Applicable √ Not applicable
II. Occupation of the Company’s Capital by the Controlling Shareholder or any of Its
Related Parties for Non-Operating Purposes
□Applicable √ Not applicable
None.III. Irregularities in the Provision of Guarantees
□Applicable √ Not applicable
No such cases in the Reporting Period.IV. Explanations Given by the Board of Directors Regarding the Latest “ModifiedOpinion” on the Financial Statements
□Applicable √ Not applicable
V Explanations Given by the Board of Directors the Board of Supervisors and the
Independent Directors (if any) Regarding the Independent Auditor's “Modified Opinion”
on the Financial Statements of the Reporting Period
□Applicable √ Not applicable
VI. YoY Changes in Accounting Policies Estimates or Correction of Material
Accounting Errors
√ Applicable □ Not applicable
October 25 2023 the Ministry of Finance issued the Interpretation of the Accounting Standards for
Business Enterprises No.17 of which the contents of "Division of Current Liabilities and Non-current
Liabilities" "Disclosure of Supplier Finance Arrangement" and "Accounting Treatment of Post-sales
Leaseback Transactions" will come into force from January 1 2024. According to the relevant
requirements the Group has made corresponding changes to the accounting policies. The changes in
accounting policies have no significant impact on the Group's total assets total liabilities net assets net
80Full Text of 2024 Annual Report of Konka Group Co. Ltd.
profits and other financial indicators.On December 6 2024 the Ministry of Finance issued the Interpretation of the Accounting Standards
for Business Enterprises No.18 stipulating that the estimated liabilities arising from guarantee-type quality
assurance that does not belong to single performance obligation shall be included in "primary business
costs" and "other business costs" according to the determined amount and shall no longer be included in
"selling expenses". According to the above accounting interpretation the Group has made corresponding
changes to the original accounting policies and retroactively adjusted the "cost of sales" "selling expenses"
and other statement items. The Company started to implement these principles from January 1 2024.In accordance with the relevant provisions of Interpretation No.18 the names and amounts of the
significantly affected statement items are set forth below:
Year 2023
Item affected
Before Adjustment amount Restated
Income statement items:
Cost of sales（RMB） 17149036750.50 180054701.97 17329091452.47
Selling expense（RMB） 1145124848.96 -180054701.97 965070146.99
VII. YoY Changes in the Scope of the Consolidated Financial Statements
√ Applicable □ Not applicable
Please refer to 6. Changes in the Scope of Consolidated Financial Statements for the Reporting
Period of 2. Revenue and Costs of IV. Core Business Analysis in Section III Operating Performance
Discussion and Analysis of this Report for details.VIII. Engagement and Disengagement of Independent Auditor
Current independent auditor
Name of the domestic independent auditor Shinewing Certified Public Accountants LLP
The Company’s payment to the domestic independent auditor
200
(RMB’0000)
How many consecutive years the domestic independent auditor
6 years
has provided audit service for the Company
Names of the certified public accountants from the domestic DENG Dengfeng LIU Lihong
independent auditor writing signatures on the auditor’s report
How many consecutive years the certified public accountants 1 year 3 years
have provided audit service for the Company
Name of the overseas independent auditor (if any) Not applicable
The Company’s payment to the overseas independent auditor
0
(RMB’0000) (if any)
How many consecutive years the overseas independent auditor
Not applicable
has provided audit service for the Company (if any)
Names of the certified public accountants from the overseas
independent auditor writing signatures on the auditor’s report Not applicable
(if any)
How many consecutive years the certified public accountants Not applicable
81Full Text of 2024 Annual Report of Konka Group Co. Ltd.
have provided audit service for the Company (if any)
Indicate by tick mark whether the independent auditor was changed for the Reporting Period
□ Yes √ No
Independent auditor financial advisor or sponsor engaged for the audit of internal controls:
√ Applicable □ Not applicable
ShineWing Certified Public Accountants LLP was appointed as the internal control auditor of
the Company for 2024 with RMB 700000 (tax-exclusive) of payment for the internal control audit.IX. Possibility of Delisting after Disclosure of this Report
□Applicable √ Not applicable
X Insolvency and Reorganization
□Applicable √ Not applicable
No such cases in the Reporting Period.XI. Major Legal Matters
√ Applicable □ Not applicable
Amount Execution Index to
Decisions and Disclosure
General information involved Provision Progress of disclosed
effects date
(RMB’0000) decisions information
Due to dispute over
commission contract
Shenzhen Konka
Pengrun Technology
Industry Co. Ltd. a
subsidiary of the
Company sued
Guang'an Ouqishi
Electronic
Technology Co. Ltd.GUAN Hongshao
Huaying Gaokede
Electronic The case has The Company
The case
Technology Co. Ltd. entered the won And the November
16681.2 No is in
Huaying Gaokelong execution case is in 24 2022
execution.Electronic phase. execution. http://www.cnin
Technology Co. Ltd fo.com.cn/new/i
Guizhou Jiaguida ndex
Technology Co. Ltd.Sichuan Horoy Real
Estate Co. Ltd. DU
Xinyu LIN Bolong
and WANG
Shisheng requesting
the defendants to pay
the payment for
goods and liquidated
damages.Due to the dispute The Company
The case
over the guarantee The case has won The court November
2128.62 No has been
contract the been closed. ruled in favor 24 2022
closed.Company's subsidiary of the
82Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Anhui Konka principal of
Electronics Co. Ltd. USD 2.3644
sued Maoxinyuan million and
Electronics overdue
(Shenzhen) Co. Ltd. interest. RMB
requesting that the 17.5387
defendant be ordered million was
to bear joint and recovered.several guarantee The case has
liability for the been closed.plaintiff.Due to dispute over
equity transfer
contract the
Company sued
Langrui Haoteng
Technology
Development Co.The case has The Company
Ltd. Beijing Beida The case
entered the won And the June 1
Jade Bird Safety 4540.76 No is in
execution case is in 2023
System Engineering execution.phase. execution.Technology Co. Ltd.and Beijing Jingrui
Haoteng Technology
Development Co.Ltd. for payment of
the equity transfer
balance.Due to dispute over
capital increase
Shenzhen Konka
Investment Holding
Co. Ltd. a
subsidiary of the The Company
Company filed an won the
arbitration lawsuit and
application with the has recovered The case
The case has June 1
Shenzhen Court of 9790.53 No RMB has been
been closed. 2021
International 132.2354 closed.Arbitration requiring million. The
the respondents Elion case has been
Resources Group closed.Limited and Elion
Ecology Co. Ltd. to
perform the
repurchase
obligation.Due to a contract
dispute Shenzhen
Oriental Venture
The case
Capital Co. Ltd. sued The case has The Company November
75214.75 No has been
the Company for an been closed. won 24 2022
closed.order to pay the
repurchase price and
liquidated damages.Due to a dispute over The case
The case has The Company June 1
bankruptcy Xinxiang 4576.7 No has been
been closed. won 2023
Jiahui Dakeluo Crafts closed.
83Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Products Co. Ltd.filed a lawsuit against
the Company's
subsidiary Henan
Frestec Refrigeration
Appliance Co. Ltd.requesting a
confirmation that the
period-end excess
VAT paid that had
been returned by the
tax authority to the
defendant should
have been other
properties to be
distributed.Due to a dispute over
the purchase and
sales contract of
international goods
Anhui Kangzhi
Trading Co. Ltd. a
The Company
subsidiary of the
won the The case
Company sued B&L The Company November
2845.19 No lawsuit and is in
TECHNOLOGY won 24 2022
the award has execution.CO. LIMITED
taken effect.requesting that the
respondent be
ordered to pay the
payment for goods
and liquidated
damages.Wu Rong sued the
Company and its
subsidiary Shenzhen
Konka Electronic
Technology Co. Ltd.due to a dispute over The case
The case has The Company November
an installment 2190.25 No has been
been closed. won 24 2022
purchase and sales closed.contract requesting
an order to pay the
plaintiff the payment
for goods and interest
on overdue payment.Due to a dispute over
the cancellation of
creditor's rights the
Company’s
subsidiary Anhui
Konka Electronics The case
The case has The Company June 1
Co. Ltd. filed a 2190.25 No has been
been closed. won 2023
lawsuit against Wu closed.Rong and Makena
Electronic
(Shenzhen) Co. Ltd.seeking for the
cancellation of the
84Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Agreement on the
Transfer of Creditor's
Rights and the
relevant supplemental
agreement previously
signed by the
defendants.Due to dispute over
commission contract
Henan Frestec
Refrigeration Co.Ltd. a subsidiary of
the Company sued
Shantou Meisen
Technology Co. Ltd.Shenzhen
Meisenyuan Plastic
Electronics Co. Ltd.LIN Yuanqin
HUANG Ruirong
The case has The Company
Jiangsu East China The case
entered the won And the November
Hardware City Co. 12990.2 No is in
execution case is in 30 2021
Ltd. and Chuangfu execution.phase. execution.Commercial Plaza
Real Estate
Development
(Huizhou) Co. Ltd.requesting an order to
terminate the
contracts return the
payment for goods
and pay liquidated
damages with priority
in compensation for
the mortgaged
property.Due to a contractual
dispute Shenzhen
Konka Unifortune
Technology Co. Ltd.a subsidiary of the
Company filed a
lawsuit against
Shenzhen Junxing
Communication
Technology Co. Ltd. The case has The Company
The case June 1
Gumei Electronics entered the won The case
26271.11 No is in 2023
(Hongkong) execution is in execution
execution.Technology Limited phase. currently.Shenzhen
Hongxingfengda
Industrial
Development Co.Ltd. Shenzhen
Junxing Junye
Electronics Co. Ltd.ZENG Jiankai
ZHANG Zhenyu
85Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Herewin Technology
Group (HK) Co.Ltd. ZHANG Lixia
Anhui Baolin
Industrial Co. Ltd.ZENG Qingpeng and
ZHONG Yuhua to
return the payment
for goods and pay the
corresponding
liquidated damages.Remarks: the court or arbitration institution ruled in favor of the Company in the following cases and the rules are currently being implemented.For details of the cases please refer to the Announcement on Large-amount Pending Litigation and Arbitration (Announcement No.: 2019-63)
disclosed by the Company on June 25 2019 the Announcement on Cumulative Litigation and Arbitration (Announcement No.: 2020-97) disclosed
on September 19 2020 the Announcement on Cumulative Litigation and Arbitration (Announced No.: 2021-48) disclosed on June 1 2021 the
Announcement on Cumulative Litigation and Arbitration (Announced No.: 2021-101) disclosed on December 1 2021 the Announcement on
Cumulative Litigation and Arbitration (Announcement No.: 2022-89) disclosed on November 24 2022 the Announcement on Cumulative Litigation
and Arbitration (Announcement No.: 2023-37) disclosed on June 1 2023 the Announcement on Cumulative Litigation and Arbitration
(Announcement No.: 2023-39) disclosed on June 22 2023 and the regular reports of the Company: 1. for notes not paid at maturity the Company
filed a lawsuit with the court requesting that China Energy Electric Fuel Co. Ltd. China Energy (Shanghai) Industrial Co. Ltd. Shanghai Nengping
Industrial Co. Ltd. and Shenzhen Qianhai Baoying Commercial Factoring Co. Ltd. pay the notes and the corresponding interest to the Company; 2.Due to the unpaid notes due the Company filed a lawsuit with the court requesting that CEFC Shanghai International Group Limited and Tianjin
International Trade Petrochemical Co. Ltd. be ordered to pay the notes and corresponding interests to the Company; 3. Due to the unpaid notes due
the Company filed a lawsuit with the court requesting that CEFC Shanghai International Group Limited Qingdao Bonded Zhongshe International
Trade Co. Ltd. and Shenzhen Qianhai Benniu Agricultural Technology Co. Ltd. be ordered to pay the notes and corresponding interests to the
Company; 4. Due to the unpaid notes due Konka Factoring filed a lawsuit with the court requesting that Tahoe Group Co. Ltd. Fuzhou Taijia
Industrial Co. Ltd. and Xiamen Lianchuang Microelectronics Co. Ltd. be ordered to pay the notes and corresponding interests to Konka Factoring; 5.Since the notes were not repaid when due the Company filed a lawsuit with the court requesting that Hefei Huajun Trading Co. Ltd. and Wuhan
Jialian Agricultural Science and Technology Development Co. Ltd. be ordered to pay the notes and corresponding interests to the Company; 6. Due
to disputes over logistics contracts the Company's subsidiary Anhui Konka Electronics Co. Ltd. sued the freight forwarding companies Shanghai
Likai Logistics Co. Ltd. Shenzhen Branch and Shanghai Likai Logistics Ltd. demanding them to bear the responsibility for compensation for losses;
7. Due to a contract dispute the Company's subsidiary Shenzhen Nianhua Enterprise Management Co. Ltd. filed an arbitration application
requesting the Respondent to pay the corresponding annual profit compensation and fund occupation fee to FANG Xianglong and JIANG Yan; 8.Due to a dispute over the payment for goods the Company's subsidiary Hong Kong Konka Co. Ltd. filed an arbitration application with the
Shenzhen Court of International Arbitration requiring the respondent MAKENA ELECTRONIC (HONG KONG) COMPANY LIMITED to pay the
payment for goods and liquidated damages; 9. Due to a dispute over the purchase and sales contract of international goods the Company's subsidiary
Anhui Konka Electronics Co. Ltd. sued MAKENA ELECTRONIC (HONG KONG) COMPANY LIMITED requesting that the respondent be
ordered to pay the applicant the interest on overdue payment and losses; 10. Due to a dispute over repurchase the Company sued Luo Zaotong Luo
Jingxia Luo Zongyin Luo Zongwu and Shenzhen Yaode Technology Co. Ltd. requiring an order to pay the share repurchase and interests. 11. due
to contract dispute the Company filed a lawsuit with the Intermediate People's Court of Zhengzhou requiring Henan Radio and Television Network
Co. Ltd. to take delivery of the goods according to the contract and pay the payment for goods interest and liquidated damages; 12. due to contract
dispute Shenzhen Konka Unifortune Technology Co. Ltd. a subsidiary of the Company sued Shenzhen Yaode Technology Co. Ltd. Dongsheng
Xinluo Technology (Shenzhen) Co. Ltd. Shenzhen Hongyao Dingsheng Investment Management Co. Ltd. Shenzhen Xiangrui Yingtong Investment
Management LP LUO Jingxia LUO Zongwu LUO Zongyin LUO Zaotong and LUO Saiyin demanding payment of goods and liquidated damages;
13. due to trademark infringement and unfair competition the Company sued Fu'an Xinshang Electronics Co. Ltd. Fujian Zhaoguan Industry and
Trade Co. Ltd. Jinhua Konka Medical Equipment Factory and WANG Jun demanding an order to stop the infringement and compensate for the loss;
14. due to commission contract dispute the Company's subsidiary Anhui Konka Electronics Co. Ltd. sued Shenzhen Meisenyuan Plastic Electronics
86Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Co. Ltd. Shantou Meisen Technology Co. Ltd. LIN Yuanqin HUANG Ruirong and Jiangsu East China Hardware City Co. Ltd. requesting an
order to terminate the contract return the payment for goods and pay liquidated damages with priority in compensation for the mortgaged property;
15. Due to commission contract dispute the Company's subsidiary Anhui Konka Electronics Co. Ltd. sued Shantou Meisen Technology Co. Ltd.
Shenzhen Meisenyuan Plastic Electronics Co. Ltd. LIN Yuanqin HUANG Ruirong and Jiangsu East China Hardware City Co. Ltd. requesting an
order to terminate the contract return the payment for goods and pay liquidated damages with priority in compensation for the mortgaged property;
16. Due to a dispute over the loan contract the Company sued Yantai Kangyue Investment Co. Ltd. requesting that the defendant be ordered to repay
the loan and interest; 17. Due to the equity repurchase dispute the Company's subsidiary Shenzhen Nianhua Enterprise Management Co. Ltd. sued
FANG Xiang Long and JIANG Yan requesting to repurchase the equity and pay the repurchase price; 18. due to purchase and sales contract dispute
Sichuan Konka Intelligent Terminal Technology Co. Ltd. a subsidiary of the Company sued Shenzhen Junxing Communication Technology Co.Ltd. Shenzhen Hongxing Fengda Industrial Development Co. Ltd. Shenzhen Junxing Junye Electronics Co. Ltd. Liuyang Huaichuan Heyuan Villa
Co. Ltd. ZENG Jiankai and ZHONG Yuhua for payment of goods and liquidated damages which is being implemented; 19. Due to contract disputes
the Company's subsidiary Konka Telecommunications Technology Co. Ltd. sued Hong Kong Join Star Electronics International Limited ZENG
Jiankai and ZHONG Yuhua demanding payment of goods and liquidated damages; 20. Because of a dispute over a trust contract the Company’s
subsidiary Henan Frestec Refrigeration Appliance Co. Ltd. sued Shenzhen Meisenyuan Plastic Electronics Co. Ltd. Shantou Meisen Technology
Co.Ltd. LIN Yuanqin HUANG Ruirong Chuangfu Commerce&Trade Plaza Real Estate Development(Huizhou)Co.Ltd. requiring an order to
terminate the contract and them return the payment for goods pay liquidated damages and give priority to the mortgaged property. 21. Due to a
dispute over a trust contract the Company’s subsidiary Hainan Konka Material Technology Co. Ltd. sued Shenzhen Meisenyuan Plastic Electronics
Co. Ltd. Shantou Meisen Technology Co.Ltd. Jiangsu East China Hardware City Co. Ltd. requiring an order to terminate the contract and them
return the payment for goods pay liquidated damages and give priority to the mortgaged property. 22. Due to a dispute over a purchase and sales
contract the Company's subsidiary Dongguan Konka Electronics Co. Ltd. filed a lawsuit with People's Court of Nanshan District Shenzhen
requesting the latter to order Dongguan Gaoneng Polymer Limited Company WANG Dong Shenzhen Xinlian Xingyao Trading Co. Ltd. Shenzhen
Jinchuan Qianchao Network Technology Co. Ltd. Puning Junlong Trading Co. Ltd. HUANG Zhihao to pay the overdue payment and
corresponding liquidated damages.The following cases have been disclosed in interim announcements and periodic reports and are under trial. For details of the cases please
refer to the Announcement on Large-amount Pending Litigation and Arbitration (Announcement No.: 2019-63) disclosed by the Company on June
25 2019 the Announcement on Cumulative Litigation and Arbitration (Announcement No: 2020-97) disclosed on September 19 2020 the
Announcement of Cumulative Litigation and Arbitration (Announcement No.: 2021-48) disclosed on June 1 2021 the Announcement about
Cumulative Litigate and Arbitration (Announcement No.: 2021-101) disclosed on December 1 2021 the Announcement on Cumulative Litigation
and Arbitration (Announcement No.: 2022-89) disclosed on November 24 2022 the Announcement on Cumulative Litigation and Arbitration
(Announcement No.: 2023-37) disclosed on June 1 2023 the Announcement on Cumulative Litigation and Arbitration (Announcement No.: 2023-
39) disclosed on June 22 2023 and the Company's periodic reports: 1. the customer of Hong Kong Konka H-BUSTER SAO PAULO
INDUSTRIAE COMERCIO S.A (Brazil) encountered insolvency and obtained approval for the judicial reorganization application from the Third
Civil Court of Cotia Sao Paulo State Brazil in May 2013. As the creditor of H-BUSTER Hong Kong Konka submitted the claim application
document and the recognized claim amount in August 2014 was approximately USD 2.78 million; 2. As the bills held by the Company failed to be
paid upon maturity the Company filed a lawsuit with the court requesting the latter to order Wuhan Jialian Agricultural Technology Development
Co. Ltd. to pay the aforesaid bills and corresponding interest to the Company. 3. Due to disputes over international goods contracts the
Company's subsidiary Jiaxin Technology Co. Ltd. sued TRIPOD ELECTRONICS TECHNOLOGY (HONGKONG) LIMITED. CHEN
Wenhuan and CHEN Baohong requesting that the defendants be ordered to pay the purchase price and liquidated damages; 4. Due to a purchase
and sales contract Sichuan Shuwu Guangrun Logistics Co. Ltd. filed a lawsuit against the Company’s subsidiary Dongguan Konka Electronics
Co. Ltd. requesting the latter to make payment for goods and pay liquidated damages. 5. Due to a dispute over the purchase and sales contract of
international goods Micro Crystal Transfer Group Ltd. filed a lawsuit against the Company's subsidiary Chongqing Konka Optoelectronics
Technology Research Institute Co. Ltd. requesting the latter to make payment for goods and pay liquidated damages. 6. Due to a contractual
dispute the Company filed a lawsuit against Zhu Xinming Leng Sumin Gongqingcheng Jinzhuanrong Investment Management Partnership
(Limited Partnership) and Gongqingcheng Xinrui Investment Management Partnership (Limited Partnership) requesting them to pay the
87Full Text of 2024 Annual Report of Konka Group Co. Ltd.
performance compensation. 7. Since Jiangxi Xinxin Jian'an Engineering Co. Ltd. (hereinafter referred to as "Jiangxi Xinxin") Jiangxi Shanshi
Technology Development Co. Ltd. (hereinafter referred to as "Jiangxi Shanshi") and Jiangxi Zhongyi Decorative Materials Co. Ltd. (hereinafter
referred to as "Jiangxi Zhongyi") failed to repay the loan and interest to Jiangxi Branch of China Great Wall Asset Management Co. Ltd.(hereinafter referred to as “Jiangxi Branch of Great Wall Asset”) who sued the court for a judgment to repay the loan of RMB300 million default
penalty of RMB108000 and interest of RMB13.65 million and at the same time nine guarantors including Jiangxi Konka Xinfeng
Microcrystalline and Nano Microcrystalline were requested to undertake joint and several liability guarantee.XII. Punishments and Rectifications
□Applicable √ Not applicable
None.XIII. Credit Quality of the Company as well as its Controlling Shareholder and De
Facto Controller
□Applicable √ Not applicable
XIV. Major Related-Party Transactions
1. Continuing Related-Party Transactions
√ Applicable □ Not applicable
As % of Obtainable
Type of Total
Relationship Content of Transa total value Approved Over the market Index to
Related related- Pricing value Method of Disclosu
with the related-party ction of all same- transaction line approved price for disclosed
party party principle (RMB’00 settlement re date
Company transactions price type (RMB’0000) line or not same-type information
transactions 00)
transactions transactions
Overseas
Chinese
Town Purchase of Property
Under the same http://www.cni
Holdings commoditie management Negotiat Market Not April 2
De Facto 11278.44 1.11% 15000 No Cash nfo.com.cn/ne
Company s and utilities ed price price applicable 2024
Controller w/index
and its services office leases
subsidiarie
s
Sales of TV
smart
Overseas
terminals and
Chinese
other
Town
Under the same Sales of products and http://www.cni
Holdings Negotiat Market Not April 2
De Facto goods and collection of 9124.63 0.94% 10000 No Cash nfo.com.cn/ne
Company ed price price applicable 2024
Controller services smart TV w/index
and its
terminal
subsidiarie
installation
s
fees and other
fees
Total -- -- 20403.07 -- 25000 -- -- -- -- --
Large-amount sales return in detail Not applicable
The Company has published the Forecasting Public Notice on Routine Related-party Transaction on Securities Times Shanghai Securities News and China
Give the actual situation in the Reporting Period (if any) where an
Securities Journal as well as the website http://www.cninfo.com.cn/new/index on April 2 2024. In the Reporting Period the basis for pricing transaction price
estimate had been made for the total value of continuing related-party
transaction amount and settlement methods of raw materials purchased by the Company were basically in accordance with the forecast. The total amount incurred
transactions by type to occur in the Reporting Period
was RMB 204.0307 million.Reason for any significant difference between the transaction price
Not applicable
and the market reference price (if applicable)
88Full Text of 2024 Annual Report of Konka Group Co. Ltd.
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity
Interests
√ Applicable □ Not applicable
For details please refer to the relevant contents of other major related-party transactions in
point 7 of this subsection.
3. Related-party transactions regarding joint investments in third parties
□Applicable √ Not applicable
No such cases in the Reporting Period.
4. Credits and Liabilities with Related Parties
√ Applicable □ Not applicable
Indicate by tick mark whether there were any credits and liabilities with related parties for non-
operating purposes.√ Yes □ No
No credits receivable with related parties
Liabilities payable to related parties:
Relationshi Beginning Increase in Recovered in Interest inForming EndingRelated party p with the reason balance this period this period
Interest this period
rate (RMB’000 balanceCompany (RMB’0000) (RMB’0000) (RMB’0000) 0) (RMB’0000)
Overseas The 81091.00 0 0 3.45% 2844.27 81091.00
Chinese Town Controlling Company 50000.00 0 0 3.45% 1753.75 50000.00
Holdings shareholder applies
Company entrustedloan to it 70000.00 0 0 3.45% 2455.25 70000.00
Effects of liabilities with related parties on the The Company applies entrusted loan from Overseas Chinese Town Holdings Company which
Company’s operating results and financial meets the needs of the company's existing business development and reduces the financing
conditions cost.
5. Transactions with Related Finance Companies
□Applicable √ Not applicable
The Company did not make deposits in receive loans or credit from and was not involved in
any other finance business with any related finance company or any other related parties.
6. Transactions with Related Parties by Finance Companies Controlled by the
Company
□Applicable √ Not applicable
The finance company controlled by the Company did not make deposits receive loans or
credit from and was not involved in any other finance business with any related parties.
7. Other Major Related-Party Transactions
√ Applicable □ Not applicable
(1) The Company's provision of counter-guarantees and payment of the guarantee fee for
applying for bank credit facilities: the Company reviewed and approved the Proposal on the
Company's Provision of Counter-guarantees and Payment of Guarantee Fee for Applying for Bank
Credit Facilities at the 23rd Meeting of the Tenth Board of Directors held on March 1 2024 and the
89Full Text of 2024 Annual Report of Konka Group Co. Ltd.
2nd 2024 Extraordinary General Meeting held on March 18 2024. To reduce financing costs and
optimize the debt structure the Company intends to apply to Overseas Chinese Town Holdings
Company to provide a full unconditional and irrevocable joint and several liability guarantee for
the bank credit facilities of up to RMB 1.6 billion that the Company intends to apply for. In this
regard the Company intends to provide a counter-guarantee with equivalent amount and duration to
Overseas Chinese Town Holdings Company and the estimated counter-guarantee amount will not
exceed RMB 1.6 billion with the guarantee period not exceeding 3 years; In addition the Company
intends to pay the guarantee fee to Overseas Chinese Town Holdings Company for the actually used
guarantee amount. It is estimated that the guarantee fee rate will not exceed 0.5% of the actually
used guarantee amount meaning that based on the guarantee amount of RMB 1.6 billion the total
guarantee fees paid by the Company will not exceed RMB 8 million during the guarantee period
and the actual amount shall be subject to the contract terms.
(2) The Company's non-public issuance of corporate bonds and the provision of counter-
guarantee and payment of the guarantee fee to Overseas Chinese Town: the Company reviewed and
approved the Proposal on the Company's Plan for Non-public Issuance of Corporate Bonds at the
33rd Meeting of the Tenth Board of Directors held on September 10 2024 and the 3rd 2024
Extraordinary General Meeting held on September 26 2024. To reduce financing costs OCT Group
intends to provide a full unconditional and irrevocable joint liability guarantee for the Company's
non-public issuance of corporate bonds not exceeding RMB 2.4 billion (inclusive). Simultaneously
the Company plans to provide an equivalent and concurrent credit counter-guarantee to OCT Group
with the counter-guarantee amount not exceeding RMB 2.4 billion (inclusive) and the guarantee
period not exceeding 5 years. In addition the Company intends to pay the guarantee fee to OCT
Group for the actually used guarantee amount. It is estimated that the guarantee fee rate will not
exceed 0.5% of the actually used guarantee amount meaning that based on the guarantee amount of
RMB 2.4 billion the total guarantee fee paid by the Company will not exceed RMB 12 million
during the guarantee period and the actual amount shall be subject to the contract terms.
(3) Listing and transfer of partial equity in the investee company and waiver of the right of first
refusal: the Company reviewed and approved the Proposal on Listing and Transfer of Partial Equity
of Kunshan Kangsheng Investment Development Co. Ltd. and Waiver of the Right of First Refusal
at the 37th Meeting of the Tenth Board of Directors held on November 6 2024. The Company
jointly listed and transferred its 29.4% equity in Kunshan Kangsheng Investment Development Co.Ltd. and the 30.6% equity held by Taizhou Overseas Chinese Town Co. Ltd. in the same company
and waived its right of first refusal for the 30.6% equity listed and transferred by Taizhou Overseas
China Town Co. Ltd. This move aims to optimize the Company's asset allocation recover funds
enhance asset liquidity and improve overall operational efficiency. According to the Shanghai
Property Transaction Contract signed by the Company Taizhou Overseas Chinese Town Co. Ltd.
90Full Text of 2024 Annual Report of Konka Group Co. Ltd.
and Kunshan Fangxin Equity Investment Management Co. Ltd. the Company has received all the
equity transfer price and completed the industrial and commercial registration of changes of
Kunshan Kangsheng Investment Development Co. Ltd.
(4) Extension of Investment Period of Wuzhen Jiayu Fund: The 38th Meeting of the Tenth
Board of Directors of the Company held on December 13 2024 and the 2025 First Extraordinary
General Meeting of Shareholders held on January 3 2015 reviewed and approved the Proposal on
the Extension of the Investment Period of Wuzhen Jiayu Fund. Due to the needs of business
development Tongxiang Jiayu Digital Economy Industry Equity Investment Partnership (Limited
Partnership) intends to change the investment period from 4 years to 5 years and the exit period
from 3 years to 2 years on the premise that the operation period remains unchanged and the total
management fee does not increase.Index to the public announcements about the said related-party transactions disclosed
Disclosure
Title of public announcement Disclosure date
website
Announcement on the Company's Provision of Counter-guarantee and Payment of
Guarantee Fees and Related-party Transactions for Application for Bank Credit March 2 2024
Business
Announcement on the Company's Plan for Non-public Issuance of Corporate
Bonds and the Provision of Counter-guarantee and Payment of Guarantee Fees to September 11 2024
OCT Group Http://www.cnin
fo.com.cn/new/i
Announcement on Listing Transfer of Partial Equity of Joint Stock Company and
November 7 2024 ndex
Waiver of Right of First Refusal and Related-party Transactions
Progress Announcement on Listing Transfer of Partial Equity of Joint Stock
December 11 2024
Company and Waiver of Right of First Refusal and Related-party Transactions
Announcement on Extension of Investment Period of Wuzhen Jiayu Fund and
December 17 2024
Related-party Transactions
XV. Major Contracts and Execution thereof
1. Entrustment Contracting and Leases
(1) Entrustment
□Applicable √ Not applicable
None.
(2) Contracting
□Applicable √ Not applicable
None.
(3) Leases
√ Applicable □ Not applicable
Note to leases
No significant leases in the Reporting Period.During the reporting period Konka R&D Building and Konka Guangming Technology Center
and other properties received rents of about RMB 84.71 million.The project bringing about the Company's profit or loss as over 10% of total profit in the
91Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Reporting Period
□ Applicable √ Not applicable
No lease project bringing about the Company's profit or loss as over 10% of total profit in the
Reporting Period
2. Major Guarantees
√ Applicable □ Not applicable
Unit: RMB'0000
Guarantees provided by the Company and its subsidiaries for external parties (exclusive of those for subsidiaries)
Guarantee
Disclosure date of Having for a
Obligor Actual Guaranteed Type of Collateral Counter Term ofthe guarantee line Line of guarantee expired related
occurrence date amount guarantee (if any) guarantee guarantee
announcement or not party or
not
May 22 2023 1499 Joint-liability None No 4 years No NoEcon
Technology One year
August 28 2023 999 Joint-liability None No and a No Nohalf
December 28 Joint- One year
2023 2498 liability None No and a No Nohalf
February 6 2024 125 Joint-liability None No 1 year No No
March 1 2024 4489 Joint-liability None No 1 year No No
April 30 2024 500 Joint-liability None No 1 year No NoApril 28 2022 50000
July 30 2024 1374 Joint-liability None No 1 year No No
Yi
July 30 2024 1124 Joint- None No Semi-liability annual No No
August 12 2024 507 Joint-liability None No 1 year No No
September 24
20242248
Joint-
liability None No 1 year No No
October 24 2024 4388 Joint-liability None No 1 year No No
December 25
20241374
Joint-
liability None No 1 year No No
Jiangxi Xinxin
Jian'an 10000 December 12Engineering 2016 10000
Joint-
liability None No No No
Co. Ltd.Jiangxi
Zhongyi
Decoration 10000 December 122016 10000
Joint-
liability None No No NoMaterials Co.Ltd.Jiangxi
Shanshi
Technology 10000 December 122016 10000
Joint-
liability None No No NoDevelopment
Co. Ltd.September 8 60000 Joint-2022 liability None No 3 years No Yes
October 18 2022 60000 Joint-liability None No 3 years No Yes
March 30 2022 September 22 Joint-
Overseas and February 25
2023 50000 liability None No 3 years No Yes
Chinese Town 2023 and August December 13 50000 Joint-
Holdings 10 2023 March 950000 2023 liability
None No 3 years No Yes
Company 1 2024 andSeptember 11 January 29 2024 150000 Joint-
2024 liability
None No 3 years No Yes
March 18 2024 80000 Joint-liability None No 3 years No Yes
March 26 2024 50000 Joint-liability None No 3 years No Yes
92Full Text of 2024 Annual Report of Konka Group Co. Ltd.
June 25 2024 60000 Joint-liability None No
Two
years No Yes
September 26
2024240000
Joint-
liability None No
Two
years No Yes
Total approved line for such guarantees in the Reporting Total actual amount of such guarantees in the
Period (A1) 400000 Reporting Period (A2) 594755
Total approved line for such guarantees at the end of the Total actual balance of such guarantees at the end of
Reporting Period (A3) 1237370 the Reporting Period (A4) 851125
Guarantees provided between the Company and subsidiaries
Guarantee
Disclosure date of
Obligor the guarantee line Line of Actual Guaranteed Type of Collateral Counter guarantee (if Term of
Having for a
guarantee occurrence date amount guarantee (if any) any) guarantee expired relatedannouncement or not party or
not
October 19
202310000
Joint- Two
liability None No years No No
November 20 One year
20233000
Joint-
liability None No and a No Nohalf
June 20 2024 5000 Joint-liability None No 1 year No NoAnhui
Tongchuang February 25 2023 55000
July 12 2024 3000 Joint-liability None No 1 year No No
August 14
20241000
Joint-
liability None No 1 year No No
December 13 Joint-
2024 4980 liability None No 1 year No No
January 15 4000 Joint-2024 liability None No 1 year No No
August 25 Joint-
Boluo Konka April 28 2022 and 2023
4500 liability None No 3 years No No
Precision February 25 2023 12500 January 29 2000 Joint-2024 liability None No 1 year No No
December 19
20241800
Joint-
liability None No 1 year No No
April 2 2024 8500 Joint-liability None No 1 year No NoElectronic
Technology February 25 2023 100000 December 3 50000 Joint-2024 liability None No 1 year No No
Dongguan March 24 2021
Konka and February 25 90000 June 23 2021 80000
Joint-
liability None No 10 years No No2023
Sichuan March 24 2021
Konka and February 25 20000 May 23 2023 4000
Joint-
liability None None 3 years No No2023
One year
Ningbo March 14 2024 6000 Joint-
Kanghanrui liability
None None and a No No
Electric April 28 2022 12000
half
Appliances July 13 2024 6000 Joint-liability None None 1 year No No
Other shareholder of
Yibin Kangrun
Yibin Kangrun October 24 2020 10000 November 13
Four and
202010000
Joint-
liability None
provides a counter
guarantee for the a half No No
Company for 33% of years
the guarantee line
August 10 Joint-
2021 10216 liability None 10 years No No
October 29 7000 Joint-2021 liability None 5 years No No
October 24
20227000
Joint-
liability None 4 years No NoOther shareholder of
Joint- Anhui Konka provides
Anhui Konka April 28 2022 110000 June 25 2023 5000 liability None a counter guarantee for 5 years No No
the Company for 22%
September 22 of the guarantee line One year
202318000
Joint-
liability None and a No Nohalf
September 11
20245500
Joint-
liability None 1 year No No
September 20 2000 Joint-2024 liability None 1 year No No
93Full Text of 2024 Annual Report of Konka Group Co. Ltd.
December 22
20235000
Joint- Two
liability None years No No
Konka Circuit March 24 2021 50000 None Three
July 19 2023 10000 Joint-liability None and a No Nohalf years
July 12 2021 8278 Joint-liability None None 5 years No NoKonka Xinyun
Semiconductor March 24 2021 30000 November 26 12100 Joint-2024 liability None None 1 year No No
Yibin Smart March 24 2021 980 March 27 2024 980 Joint-liability None None 1 year No No
Chongqing
Konka March 24 2021 55600
December 13 Joint-
2022 38000 liability None None 15 years No No
Frestec Smart April 28 2022 12240 January 30 Joint-Home 2024 10200 liability None None 3 years No No
Konka Soft April 28 2022 19000 December 19 975 Joint-Electronic 2022 liability None None 6 years No No
Konka
Hongye April 28 2022 and January 24February 25 2023 27500 2024 19010
Joint-
liability None None 14 years No NoElectronics
Xi'an
Kanghong
Technology February 25 2023 30000 May 26 2023 30000
Joint-
liability None None 10 years No No
Industry
Total approved line for such guarantees in the Reporting Period (B1) 0 Total actual amount of such guarantees in theReporting Period (B2) 90070
Total approved line for such guarantees at the end of the Reporting 938855 Total actual balance of such guarantees at the end ofPeriod (B3) the Reporting Period (B4) 393039
Guarantees provided between subsidiaries
Guarantee
Disclosure date of Counter Having for a
Obligor the guarantee line Line of guarantee Actual Guaranteed Type of Collateral Term of
announcement occurrence date amount guarantee (if any)
guarantee guarantee expired related(if any) or not party or
not
None
Total approved line for such guarantees in the Reporting Period (C1) 0 Total actual amount of such guarantees in theReporting Period (C2) 0
Total approved line for such guarantees at the end of the Reporting 0 Total actual balance of such guarantees at the end ofPeriod (C3) the Reporting Period (C4) 0
Total guarantee amount (total of the three kinds of guarantees above)
Total guarantee line approved in the Reporting Period (A1+B1+C1) 400000 Total actual guarantee amount in the ReportingPeriod (A2+B2+C2) 684825
Total approved guarantee line at the end of the Reporting Period 2176225 Total actual guarantee balance at the end of the(A3+B3+C3) Reporting Period (A4+B4+C4) 1244164
Total actual guarantee amount (A4+B4+C4) as % of the Company’s net assets 525.04%
Of which:
Balance of guarantees provided for shareholders De Facto Controller and their related parties (D) 800000
Balance of debt guarantees provided directly or indirectly for obligors with an over 70% debt/asset ratio (E) 1244164
Amount by which the total guarantee amount exceeds 50% of the Company’s net assets (F) 1125681
Total of the three amounts above (D+E+F) 1244164
Joint responsibilities possibly borne in the Reporting Period for undue guarantees (if any) None
Provision of external guarantees in breach of the prescribed procedures (if any) None
Compound guarantees:
None
94Full Text of 2024 Annual Report of Konka Group Co. Ltd.
3. Cash Entrusted for Wealth Management
(1) Cash entrusted for wealth management
√ Applicable □ Not applicable
Overview of cash entrusted for wealth management in the Reporting Period
Unit: RMB'0000
Unrecovered
Unrecovered overdue amount
Type Funding source Amount Undue amount
overdue amount with provision for
impairment
Trust financial
Self-funded 10000 10000 0 0
products
Total 10000 10000 0 0
High-risk entrusted wealth management with significant single amount or low security and
poor liquidity:
□ Applicable √ Not applicable
Whether there is the case where the principal cannot be recovered at maturity or other case
which may cause impairment for entrusted wealth management
□ Applicable √ Not applicable
(2) Entrusted loans
□Applicable √ Not applicable
None.
4. Other Major Contracts
□Applicable √ Not applicable
No such cases in the Reporting Period.XVI. Other Significant Events
√ Applicable □ Not applicable
(I) Initiation and establishment of funds: the total scale of the Oriental-Konka Industry M&A
Fund was RMB 1001 million. Shenzhen Konka Investment Holding Co. Ltd. contributed RMB
500 million accounting for 49.95% of the total units. By the date of this report Shenzhen Konka
Investment Holding Co. Ltd. has contributed RMB 487.34 million. The fund invested in Jiangxi
Yahua Electronic Materials Co. Ltd. Potron Technology Co. Ltd. etc.The total scale of the Kunshan-CITIC-Konka Emerging Industry Development Investment
Fund was RMB100.6 million. Shenzhen Konka Investment Holding Co. Ltd. contributed RMB500
million accounting for 49.70% of the total units. By the date of this report Shenzhen Konka
Investment Holding Co. Ltd. has contributed RMB195.21 million. The fund invested in
UNIONTECH Hercules Microsystems (HME) etc.The total scale of the Tongxiang Wuzhen Jiayu Digital Economic Industry Fund was RMB500
million. Shenzhen Konka Investment Holding Co. Ltd. contributed RMB200 million accounting
95Full Text of 2024 Annual Report of Konka Group Co. Ltd.
for 40% of the total units. By the date of this report Shenzhen Konka Investment Holding Co. Ltd.has contributed RMB200000000. The fund invested in Feidi Technology (Shenzhen) Co. Ltd.Allystar Technology (Shenzhen) Co. Ltd. etc.The total scale of Yancheng Kangyan Industry Investment Fund was RMB3000 million.Shenzhen Konka Investment Holding Co. Ltd. and Shenzhen Konka Capital Equity Investment
Management Co. Ltd. contributed RMB1201500000 accounting for 40.05% of the total units. By
the date of this report Shenzhen Konka Investment Holding Co. Ltd. and Shenzhen Konka Capital
Equity Investment Management Co. Ltd. have contributed RMB217.36 million. The fund invested
in Anhui Zhongdian Xinlong Technology Co. Ltd. (formerly known as Anhui Zhongdian Xingfa
and Xinlong Co. Ltd. Chongqing E2info Technology Co. Ltd.) and Chongqing E2info Technology
Co. Ltd. etc.The total scale of Yibin Kanghui Electronic Information Industry Equity Investment Fund was
RMB 1002 million. Shenzhen Konka Investment Holding Co. Ltd. and Shenzhen Konka Capital
Equity Investment Management Co. Ltd. contributed RMB401 million accounting for 40.02% of
the total units. By the issuance date of this report Shenzhen Konka Investment Holding Co. Ltd.has contributed RMB 106.6 million. The fund invested in Chongqing E2info Technology Co. Ltd.etc.The total scale of Chongqing Kangxin Equity Investment Fund was RMB 2 billion. Shenzhen
Konka Investment Holding Co. Ltd. and Shenzhen Konka Capital Equity Investment Management
Co. Ltd. contributed RMB 1 billion accounting for 50% of the total units. By the date of this report
Shenzhen Konka Investment Holding Co. Ltd. and Shenzhen Konka Capital Equity Investment
Management Co. Ltd. have contributed RMB 148.25 million. The fund invested in Shanghai
VEIGLO Information System Co. Ltd. Jiangxi Taide Wisdom Technology Co. Ltd. etc.(II) Issuance of corporate bonds: 1. the Company's non-public issuance of corporate bonds of
RMB 2.3 billion has issued RMB 1.5 billion and RMB 800 million respectively on January 29
2024 and March 18 2024. 2. The Company's non-public issuance of corporate bonds not exceeding
RMB 2.4 billion was approved by the General Meeting of the Company on September 26 2024
and the Letter of No Objection on the Compliance of Konka Group Co. Ltd.'s Non-public Issuance
of Corporate Bonds with the Listing Requirements of Shenzhen Stock Exchange (SZH [2024] No.
866) issued by Shenzhen Stock Exchange was obtained on December 18 2024. Matters related to
bond issuance are currently being promoted as planned.(III) Progress on the plan to issue shares for asset acquisition and raise supporting funds: the
Company intends to purchase 78% of the shares of MacroSilicon Technology Co. Ltd. from Liu
Wei and 16 other parties by issuing shares and simultaneously raise supporting funds (referred to as
"the transaction"). For details on the transaction please refer to the Plan for Issuing Shares to
Purchase Assets and Raise Supporting Funds disclosed by Konka Group Co. Ltd. on January 14
96Full Text of 2024 Annual Report of Konka Group Co. Ltd.
2025 on cninfo (http://www.cninfo.com.cn/new/index) and related announcements.
Since the disclosure of the Plan the Company and relevant parties have actively advanced all
aspects of the transaction. As of the disclosure date of this report related work such as due diligence
auditing and valuation for the transaction was in progress.(IV) Major issues planned by the controlling shareholder of the Company: on April 8 2024
the Company was notified by its controlling shareholder OCT Group: in order to advance the
specialized integration among the state-owned enterprises and optimize allocation of resources it
was planned to introduce other central enterprise groups to implement specialized integration of the
Company and relevant subsequent procedures will be carried out in accordance with the law. This
round of integration might bring changes in the controlling shareholder of the Company but the
actual controller would remain unchanged namely State-owned Assets Supervision and
Administration Commission of the State Council. Issues related to this round of integration were
still in planning and with uncertainties. Subsequently the Company would strictly comply with
information disclosure requirements continuously monitor relevant developments and fulfill
information disclosure obligations in a timely manner in accordance with relevant laws and
regulations.(V) Index of significant information disclosure
Announc Date Title Page on newspaper Website
ement link
No.
2024-01 January 30 2024 Announcement of Issuance Results of Privately Placed Corporate Bonds http://wwwto Professional Investors in 2024 of Konka Group Co. Ltd (Tranche I) Securities Times B53 Shanghai Securities News 36 etc. .cninfo.co
2024-02 January 31 2024 2023 Result Forecast Securities Times B76 Shanghai Securities News 10 etc. m.cn/new/i
2024-03 February 7 2024 Announcement on Resolutions of 12th Meeting of the Tenth Board of
ndex
Directors Securities Times B128 Shanghai Securities News 74 etc.
2024-04 February 7 2024 Announcement on the Resolutions of the 7th Meeting of the Tenth Boardof Supervisors Securities Times B128 Shanghai Securities News 74 etc.
2024-05 February 7 2024 Announcement on Revising the Articles of Association and OtherCompany Systems Securities Times B127 Shanghai Securities News 73 etc.
Announcement on Providing Financial Assistance to Sichuan
2024-06 February 7 2024 Hongxinchen Real Estate Development Co. Ltd. according to Securities Times B128 Shanghai Securities News 74 etc.
Shareholding Ratio
2024-07 February 7 2024 Announcement on Providing Financial Assistance to Yantai KangyunIndustry Development Co. Ltd. according to Shareholding Ratio Securities Times B45 Shanghai Securities News 74 etc.
2024-08 February 7 2024 Notice on Convening 2024 First Extraordinary General Meeting Securities Times B128 Shanghai Securities News 73 etc.
2024-09 February 27 2024 Announcement on Resolutions of 2024 First Extraordinary GeneralMeeting Securities Times B3 Shanghai Securities News 73 etc.
Announcement on the Company's Provision of Counter-guarantee and
2024-10 March 2 2024 Payment of Guarantee Fees and Related-party Transactions for Securities Times B49 Shanghai Securities News 20 etc.
Application for Bank Credit Business
2024-11 March 2 2024 Announcement on Resolutions of 23rd Meeting of the Tenth Board ofDirectors Securities Times B49 Shanghai Securities News 20 etc.
2024-12 March 2 2024 Notice on Convening 2024 Second Extraordinary General Meeting Securities Times B49 Shanghai Securities News 20 etc.
2024-13 March 15 2024 Informative Announcement on Convening the Second ExtraordinaryGeneral Meeting in 2024 Securities Times B19 Shanghai Securities News 28 etc.
2024-14 March 15 2024 Announcement on Progress in the Provision of External Guarantee Securities Times B19 Shanghai Securities News 28 etc.
2024-15 March 19 2024 Announcement on Resolutions of 2024 Second Extraordinary GeneralMeeting Securities Times B80 Shanghai Securities News 20 etc.
2024-16 March 19 2024 Announcement of Issuance Results of Privately Placed Corporate Bondsto Professional Investors in 2024 of Konka Group Co. Ltd (Tranche I) Securities Times B80 Shanghai Securities News 20 etc.
2024-17 March 22 2024 Announcement on Progress in the Provision of External Guarantee Securities Times B14 Shanghai Securities News 28 etc.
2024-18 April 2 2024 ANNUAL REPORT 2023 Securities Times B192 Shanghai Securities News 169etc.
2024-19 April 2 2024 Abstract of 2023 Annual Report Securities Times B192 Shanghai Securities News 169etc.
2024-20 April 2 2024 Announcement on Resolutions of 24th Meeting of the Tenth Board of Securities Times B192 Shanghai Securities News 169
97Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Directors etc.
2024-21 April 2 2024 Announcement of Resolutions of the 11th Meeting of the Tenth Board of Securities Times B192 Shanghai Securities News 169Supervisors etc.
2024-22 April 2 2024 Announcement on Expected Routine Related-party Transactions in 2024 Securities Times B192 Shanghai Securities News 169etc.
2024-23 April 2 2024 Announcement on Expected Routine Related-party Transactions in 2024 Securities Times B192 Shanghai Securities News 169etc.
2024-24 April 2 2024 Announcement on Accrual of Asset Impairment Reserves for 2023 Securities Times B192 Shanghai Securities News 169etc.
2024-25 April 8 2024 Announcement on Holding 2023 Online Result Release Securities Times B46 Shanghai Securities News 10 etc.
2024-26 April 29 2024 2024 First Quarter Report Securities Times B244 Shanghai Securities News 60 etc.
2024-27 May 11 2024 Announcement on Reply to Inquiry Letter on 2023 Annual Report from Securities Times B129-B131 Shanghai Securities NewsShenzhen Stock Exchange 137-139 etc.
2024-28 May 21 2024 Announcement on Progress in the Provision of External Guarantee Securities Times B2 Shanghai Securities News 81 etc.
2024-29 June 1 2024 Announcement on Resolutions of 27th Meeting of the Tenth Board ofDirectors Securities Times B36 Shanghai Securities News 17 etc.
2024-30 June 1 2024 Notice on Convening 2023 General Meeting Securities Times B36 Shanghai Securities News 17 etc.
2024-31 June 25 2024 Announcement on Resolutions of 2023 General Meeting Securities Times B56 Shanghai Securities News 41 etc.
2024-32 June 26 2024 Announcement on Progress of Guarantee Provision for Wholly-ownedSubsidiaries Securities Times B15 Shanghai Securities News 76 etc.
2024-33 July 9 2024 2024 Semi-annual Results Pre-announcement Announcement Securities Times B92 Shanghai Securities News 76 etc.
2024-34 July 20 2024 Announcement on Progress of Guarantee Provision for Wholly-ownedCompany Securities Times B18 Shanghai Securities News 12 etc.
2024-35 August 5 2024 Announcement on Abnormal Fluctuations in Stock Trading Securities Times B11 Shanghai Securities News 12 etc.
2024-36 August 8 2024 Announcement on Abnormal Fluctuations in Stock Trading Securities Times B31 Shanghai Securities News 68 etc.
2024-37 August 17 2024 Announcement on the Progress of Overdue Shareholder Borrowings forJoint Stock Companies Securities Times B25 Shanghai Securities News 49 etc.
2024-38 August 22 2024 Announcement on Abnormal Fluctuations in Stock Trading Securities Times B87 Shanghai Securities News 97 etc.
2024-39 August 28 2024 Announcement on Resolutions of 31th Meeting of the Tenth Board of Securities Times B152 Shanghai Securities News 188Directors etc.
2024-40 August 28 2024 Announcement on Changes in Directors and Senior Officers of the Securities Times B152 Shanghai Securities News 188Company etc.
2024-41 August 31 2024 Summary of 2024 Interim Report Securities Times B173 Shanghai Securities News 52 etc.
2024-42 August 31 2024 2024 Interim Report Securities Times B173 Shanghai Securities News 52 etc.
2024-43 August 31 2024 Announcement on Semi-annual Provision for Assets Impairment for 2024 Securities Times B173 Shanghai Securities News 52 etc.
2024-44 September 11 2024 Announcement of Resolutions of 33rd Meeting of the Tenth Board ofDirectors Securities Times B53 Shanghai Securities News 41 etc.
2024-45 September 11 2024 Announcement on Providing Financial Assistance to DongguanGuankang Yuhong Investment Co. Ltd. According to Shareholding Ratio Securities Times B53 Shanghai Securities News 41 etc.
2024-46 September 11 2024 Announcement on Loans Provided by Holding Subsidiaries toShareholders in Proportion to Equity Securities Times B36 Shanghai Securities News 41 etc.
Announcement on the Company's Plan for Non-public Issuance of
2024-47 September 11 2024 Corporate Bonds and the Provision of Counter-guarantee and Payment of Securities Times B53 Shanghai Securities News 41 etc.
Guarantee Fees to OCT Group
2024-48 September 11 2024 Notice on Convening 2024 Third Extraordinary General Meeting Securities Times B53 Shanghai Securities News 41 etc.
2024-49 September 21 2024 Announcement on Progress in the Provision of External Guarantee Securities Times B37 Shanghai Securities News 20 etc.
2024-50 September 27 2024 Announcement on Resolutions of 2024 Third Extraordinary GeneralMeeting Securities Times B64 Shanghai Securities News 49 etc.
2024-51 September 28 2024 Announcement on Resolutions of 35th Meeting of the Tenth Board ofDirectors Securities Times B63 Shanghai Securities News 44 etc.
2024-52 September 28 2024 Notice on Convening 2024 Fourth Extraordinary General Meeting Securities Times B63 Shanghai Securities News 44 etc.
2024-53 October 22 2024 Announcement on Resolutions of 2024 First Extraordinary GeneralMeeting Securities Times B83 Shanghai Securities News 49 etc.
2024-54 October 22 2024 Announcement on Abnormal Fluctuations in Stock Trading Securities Times B86 Shanghai Securities News 49 etc.
2024-55 October 23 2024 Announcement on Abnormal Fluctuations in Stock Trading Securities Times B94 Shanghai Securities News 52 etc.
2024-56 October 28 2024 Announcement on Abnormal Fluctuations in Stock Trading Securities Times B48 Shanghai Securities News 44 etc.
2024-57 October 29 2024 Announcement on Abnormal Fluctuations in Stock Trading Securities Times B6 Shanghai Securities News 121 etc.
2024-58 October 30 2024 Announcement on Abnormal Fluctuations in Stock Trading Securities Times B470 Shanghai Securities News 329etc.
2024-59 October 31 2024 Announcement of Resolutions of 36th Meeting of the Tenth Board of Securities Times B432 Shanghai Securities News 329Directors etc.
2024-60 October 31 2024 Announcement on Appointment of Audit Firms for 2024 Financial Securities Times B432 Shanghai Securities News 329Statements and Internal Control Audit etc.
2024-61 October 31 2024 Notice on Convening 2024 Third Extraordinary General Meeting Securities Times B432 Shanghai Securities News 329etc.
Announcement on Providing Financial Assistance to Chuzhou Kangxin
2024-62 October 31 2024 Health Industry Development Company Limited According to Securities Times B432 Shanghai Securities News 329
Shareholding Ratio etc.
2024-63 October 31 2024 Announcement on the Loans Provided by Shaanxi Konka Smart Home Securities Times B401 Shanghai Securities News 329Appliance Co. Ltd. to Shareholders in Proportion to Equity etc.
2024-64 October 31 2024 2024 Third Quarter Report Securities Times B432 Shanghai Securities News 329etc.
98Full Text of 2024 Annual Report of Konka Group Co. Ltd.
2024-65 November 1 2024 Announcement on Abnormal Fluctuations and Serious AbnormalFluctuations in Stock Trading Securities Times B56 Shanghai Securities News 9 etc.
2024-66 November 7 2024 Announcement on Resolutions of 37th Meeting of the Tenth Board ofDirectors Securities Times B17 Shanghai Securities News 17 etc.
Announcement on Listing Transfer of Partial Equity of Joint Stock
2024-67 November 7 2024 Company and Waiver of Right of First Refusal and Related-party Securities Times B17 Shanghai Securities News 17 etc.
Transactions
2024-68 November 7 2024 Announcement on Abnormal Fluctuations in Stock Trading Securities Times B31 Shanghai Securities News 17 etc.
2024-69 November 16 2024 Announcement on Reply to the Shareholder Inquiry Proposal Letter ofCSI Small and Medium-sized Investor Service Center Securities Times B14 Shanghai Securities News 65 etc.
2024-70 November 19 2024 Announcement on Resolutions of 2024 Fifth Extraordinary GeneralMeeting Securities Times B47 Shanghai Securities News 17 etc.
2024-71 November 28 2024 Announcement on Participating in the Collective Reception Day of ListedCompanies in Shenzhen in 2024 Securities Times B45 Shanghai Securities News 84 etc.
Announcement on Signing a Cooperation Framework Agreement with the
2024-72 November 28 2024 Intelligent Manufacturing Industry Development Management Office of Securities Times B45 Shanghai Securities News 84 etc.
Nanjing Jiangbei New Area
Progress Announcement on Listing Transfer of Partial Equity of Joint
2024-73 December 11 2024 Stock Company and Waiver of Right of First Refusal and Related-party Securities Times B2 Shanghai Securities News 44 etc.
Transactions
2024-74 December 17 2024 Announcement of Resolutions of 38th Meeting of the Tenth Board ofDirectors Securities Times B18 Shanghai Securities News 17 etc.
2024-75 December 17 2024 Notice on Convening 2025 First Extraordinary General Meeting Securities Times B18 Shanghai Securities News 17 etc.
2024-76 December 17 2024 Announcement on Extension of Investment Period of Wuzhen Jiayu Fundand Related-party Transactions Securities Times B18 Shanghai Securities News 17 etc.
2024-77 December 19 2024 Announcement on the Receipt of SZSE No Objection Letter for 2024Corporate Bond Listing Qualification Securities Times B27 Shanghai Securities News 60 etc.
2024-78 December 31 2024 Suspension Announcement on Planning to Issue Shares to PurchaseAssets Securities Times B24 Shanghai Securities News 108 etc.
XVII. Significant Events of Subsidiaries
□Applicable √ Not applicable
99Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Section VII Changes in Shares and Shareholders
I. Share Changes
1. Share changes
Unit: share
Before Increase/decrease in the reporting period (+/-) After
Shares as Shares as
Percentage New dividend dividend Percentage
Number converted converted Others Subtotal Number
(%) issues from from capital (%)
profit reserves
I. Restricted shares 0 0.00% 0 0.00%
II. Unrestricted shares 2407945408 100.00% 2407945408 100.00%
1. RMB-denominated
159659380066.31%159659380066.31%
ordinary shares
2. Domestically listed
81135160833.69%81135160833.69%
foreign shares
III. Total shares 2407945408 100.00% 2407945408 100.00%
Reasons for changes in shareholding
□ Applicable √ Not applicable
Approval of the share changes
□ Applicable √ Not applicable
Transfer of share ownership
□ Applicable √ Not applicable
Effects of the share changes on the basic and diluted earnings per share equity per share
attributable to the Company’s ordinary shareholders and other financial indicators of the prior year
and the prior accounting period respectively:
□ Applicable √ Not applicable
Other information that the Company considers necessary or is required by the securities
regulator to be disclosed:
□ Applicable √ Not applicable
2. Changes in restricted shares
□Applicable √ Not applicable
II. Issuance and Listing of Securities
1. Securities (Exclusive of Preferred Shares) Issued in the Reporting Period
□Applicable √ Not applicable
2. Changes in total shares shareholder structure and asset and liability structure
□Applicable √ Not applicable
3. Existing Staff-Held Shares
□Applicable √ Not applicable
100Full Text of 2024 Annual Report of Konka Group Co. Ltd.
III. Shareholders and De Facto Controller
1. Shareholders and Their Shareholdings at the Period-End
Unit: share
Number of ordinary Number of ordinary Number of preferred shareholders with
shareholders as at 173407 shareholders at the
Number of preferred resumed voting rights at the month-end
the end of the month-end prior to the 168479 shareholders with resumed 0 prior to the disclosure of this Report (if 0
reporting period disclosure of this Report voting rights (if any) any)
5% or greater shareholders or top 10 shareholders
Increas Shares in pledge
e/decre marked or frozen
Name of shareholder Nature of Shareholding
Number of ase in
shareholder percentage shares held at the the
Restricted Unrestricted
period-end Reporti shares held shares held Status Number
ng
Period
Overseas Chinese Town State-owned
Holdings Company legal person 21.75% 523746932 0 0 523746932
CITIC SECURITIES
BROKERAGE (HONG Foreign legalperson 7.48% 180001110 0 0 180001110KONG) CO. LTD.GUOYUAN SECURITIES Foreign legal 17223
BROKER (HK) CO. LTD. person 2.55% 61429143 00 0 61429143
HOLY TIME GROUP Foreign legal
LIMITED person 2.38% 57289100 0 0 57289100
HONG KONG SECURITIES Foreign legal 0.97% 23426367 11336CLEARING COMPANY LTD. person 81 0 23426367
-
NAM NGAI Foreignnatural person 0.83% 20000000 30000 0 2000000000
CHINA MERCHANTS State-owned
SECURITIES (HK) LIMITED legal person 0.83% 19998520 133000 0 19998520
MORGAN STANLEY & CO. Foreign legal
INTERNATIONAL PLC. person 0.39% 9299939
92999
3909299939
XU Zhiwang Foreignnatural person 0.37% 8887629 749600 0 8887629
LIU Mingxiang Domestic 79992natural person 0.33% 7999200 00 0 7999200
Strategic investor or general legal person
becoming a top-10 ordinary shareholder due to None
rights issue (if any) (see note 3)
The wholly-owned subsidiary of the major shareholder Overseas Chinese Town Holdings Company Jialong
Related or acting-in-concert parties among the Investment Co. Ltd. holds 180001110 common shares and 18360000 common stocks of the Company
shareholders above respectively through CITIC Securities Brokerage (Hong Kong) Co. Ltd. and China Merchants Securities (HongKong) Co. Ltd. Jialong Investment Co. Ltd. and Overseas Chinese Town Holdings Company are persons
acting in concert. It is unknown whether other shareholders are related or act in concert.Explain if any of the shareholders above was
involved in entrusting/being entrusted with voting Not applicable
rights or waiving voting rights
Special account for share repurchases (if any)
among the top 10 shareholders (see note 10) None
Top 10 unrestricted shareholders
Name of shareholder Unrestricted shares held at the period-end TypeType Number
Overseas Chinese Town Holdings Company 523746932 RMB-denominated ordinary stock 523746932
CITIC SECURITIES BROKERAGE (HONG
KONG) CO. LTD. 180001110 Domestically listed foreign stock 180001110
GUOYUAN SECURITIES BROKER (HK) CO.LTD. 61429143 Domestically listed foreign stock 61429143
HOLY TIME GROUP LIMITED 57289100 Domestically listed foreign stock 57289100
HONG KONG SECURITIES CLEARING
COMPANY LTD. 23426367 RMB-denominated ordinary stock 23426367
NAM NGAI 20000000 Domestically listed foreign stock 20000000
CHINA MERCHANTS SECURITIES (HK)
LIMITED 19998520 Domestically listed foreign stock 19998520
MORGAN STANLEY & CO.INTERNATIONAL PLC. 9299939 RMB-denominated ordinary stock 9299939
XU Zhiwang 8887629 Domestically listed foreign stock 8887629
LIU Mingxiang 7999200 RMB-denominated ordinary stock 7999200
Related or acting-in-concert parties among top 10 The wholly-owned subsidiary of the major shareholder Overseas Chinese Town Holdings Company Jialong
unrestricted public shareholders as well as Investment Co. Ltd. holds 180001110 common shares and 18360000 common stocks of the Company
between top 10 unrestricted public shareholders respectively through CITIC Securities Brokerage (Hong Kong) Co. Ltd. and China Merchants Securities (Hong
and top 10 shareholders Kong) Co. Ltd. Jialong Investment Co. Ltd. and Overseas Chinese Town Holdings Company are personsacting in concert. It is unknown whether other shareholders are related or act in concert.Top 10 ordinary shareholders involved in None
101Full Text of 2024 Annual Report of Konka Group Co. Ltd.
securities margin trading (if any) (see note 4)
Participation of shareholders holding more than 5% of the shares the top 10 shareholders and
the top 10 shareholders of unrestricted tradable shares in refinancing business and lending shares
□ Applicable √ Not applicable
Changes of the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares
compared with the previous period due to refinancing lending/repayment
□ Applicable √ Not applicable
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10
unrestricted ordinary shareholders of the Company conducted any promissory repo during the
Reporting Period.□ Yes √ No
None.
2. Controlling Shareholder
Nature of the controlling shareholder: Controlled by a central state-owned legal person
Type of the controlling shareholder: legal person
Name of Legal Unified
controlling representat
Date of
establish socialive/person credit Principal activityshareholder in charge ment code
Export of textile light industrial products etc.; import of self-used goods
in Shenzhen mechanical equipment light industrial products etc. as
approved by the relevant authorities of Shenzhen (under Government
Document JMB [92] WJMGTSZZ No. A19024); compensation trade;
Overseas investment in tourism and relevant cultural industry (including art
Chinese ZHANG Novemb 91440300 performance entertainment and their services etc.) industry real estateTown Zhengao er 11 19034617 commerce & trade packaging decoration and investment in printingHoldings 1985 5T industry. The convert of export commodities into domestic sale and the
Company domestic sales of import commodities. Travelling rental of warehouses
culture and art bonded warehouse of car donation convention and
exhibition services (the projects involved in license management can be
operated after getting the relevant license first ); Sales of automobiles
(including cars).As of December 31 2024 Overseas Chinese Town Holdings Company directly held 48.78% of the equity of
Shenzhen Overseas Chinese Town Co. Ltd. (a company listed on the Shenzhen Stock Exchange SZ.000069) and
Controlling indirectly held 0.98% of the equity of Shenzhen Overseas Chinese Town Co. Ltd. through its subsidiary Shenzhen
shareholder Overseas Chinese Town Capital Investment Management Co. Ltd. At the same time Shenzhen Overseas Chinese
’s holdings Town Co. Ltd. indirectly held 70.94% of the equity of Overseas Chinese Town (Asia) Co. Ltd. (listed on the
in other main board of the Hong Kong Stock Exchange 3366.HK); Overseas Chinese Town Holdings Company directly
listed and indirectly held 53.88% of the equity of Yunnan Tourism Co. Ltd. (a company listed on the Shenzhen Stock
companies Exchange SZ.002059); Overseas Chinese Town Holdings Company directly held 7.11% of the equity of CHINA
at home or EVERBRIGHT BANK COMPANY LIMITED (a company listed on the main board of the Shanghai Stock
abroad in Exchange and the Hong Kong Stock Exchange SH.601818 6818.HK); Overseas Chinese Town Holdings
the Company through its subsidiary Shenzhen Overseas Chinese Town Capital Investment Management Co. Ltd.Reporting indirectly held 2.74% of the equity of Zhejiang Century Huatong Group Co. Ltd. (a company listed on the
Period Shenzhen Stock Exchange SZ.002602); Overseas Chinese Town Holdings Company through its subsidiary
Shenzhen OCT Capital Investment Management Co. Ltd. indirectly held 10.36% of the equity of Jiangsu Guoxin
Corp. Ltd. (a company listed on the Shenzhen Stock Exchange SZ.002608).Change of the controlling shareholder in the reporting period
□ Applicable √ Not applicable
None.
102Full Text of 2024 Annual Report of Konka Group Co. Ltd.
3. De Facto Controller and Its Persons Acting in Concert
Nature of the De Facto Controller: Central institution for state-owned assets management
Type of the De Facto Controller: legal person
Name of De Facto Controller Legal representative/person in Date of Unified social Principalcharge establishment credit code activity
State-owned Assets Supervision and
Administration Commission of the Zhang Yuzhuo Not applicable Not applicable
State Council
De Facto Controller‘s holdings in other listed companies at home or abroad in the Reporting Period Not applicable
Change of the De Facto Controller during the Reporting Period:
□ Applicable √ Not applicable
None.Ownership and control relations between the De Facto Controller and the Company:
State-owned Assets Supervision and
Administration Commission of the State Council
Overseas Chinese Town Holdings Company and
its wholly-owned subsidiaries
Konka Group Co. Ltd.The De Facto Controller controls the company through trust or other asset management
methods
□ Applicable √ Not applicable
4. Number of Accumulative Pledged Shares held by the Company’s Controlling
Shareholder or the Largest Shareholder as well as Its Acting-in-Concert Parties Accounts
for 80% of all shares of the Company held by Them
□Applicable √ Not applicable
5. Other 10% or Greater Corporate Shareholders
□Applicable √ Not applicable
6. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder
De Facto Controller Reorganizer and Other Commitment Makers
□Applicable √ Not applicable
IV. Specific Implementation of Share Repurchases in the Reporting Period
Progress on any share repurchases:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
103Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Section VIII Preference Shares
□Applicable √ Not applicable
No Preference shares in the Reporting Period.
104Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Section IX Bonds
√ Applicable □ Not applicable
I. Enterprise Bonds
□Applicable √ Not applicable
No enterprise bonds in the Reporting Period.II. Corporate Bonds
√ Applicable □ Not applicable
1. Basic Information of the Corporate Bonds
Unit: RMB'0000
Name Abbr. Code Issue date Value date Due date Bonds Interest Way ofbalance rate redemption Trade place
Corporate bonds Interests shall
publicly offered to be paid every
The
professional 22 year and the
July 14 July 14 July 14 Shenzhen
investors in 2022 Konka 149987 120000 3.23% principals
2022 2022 2025 Stock
of Konka Group 01 shall be
Exchange
Co. Ltd. (Tranche repaid when
I) (Variety I) expired.Privately placed Interests shall
corporate bonds to be paid every
The
professional 22 year and the
September September September Shenzhen
investors in 2022 Konka 133306 60000 3.30% principals
8 2022 8 2022 8 2025 Stock
of Konka Group 03 shall be
Exchange
Co. Ltd. (Tranche repaid when
I) (Variety I) expired.Privately placed Interests shall
corporate bonds to be paid every
The
professional 22 year and the
October October October Shenzhen
investors in 2022 Konka 133333 60000 3.50% principals
18 2022 18 2022 18 2025 Stock
of Konka Group 05 shall be
Exchange
Co. Ltd.(Tranche repaid when
II) expired.Privately placed Interests shall
corporate bonds to be paid every
The
professional 24 year and the
January 29 January 29 January 29 Shenzhen
investors in 2024 Konka 133759 150000 4.00% principals
2024 2024 2027 Stock
of Konka Group 01 shall be
Exchange
Co. Ltd. (Tranche repaid when
I) expired.Privately placed Interests shall
corporate bonds to be paid every
The
professional 24 year and the
March 18 March 18 March 18 Shenzhen
investors in 2024 Konka 133782 40000 4.00% principals
2024 2024 2027 Stock
of Konka Group 02 shall be
Exchange
Co. Ltd. (Tranche repaid when
II) (Variety I) expired.Privately placed 24 Interests shall The
March 18 March 18 March 18
corporate bonds to Konka 133783 40000 4.03% be paid every Shenzhen
202420242027
professional 03 year and the Stock
105Full Text of 2024 Annual Report of Konka Group Co. Ltd.
investors in 2024 principals Exchange
of Konka Group shall be
Co. Ltd. (Tranche repaid when
II) (Variety II) expired."22 Konka 03" "22 Konka 05" "24 Konka 01" "24 Konka 02" and "24 Konka 03" were placed
privately to professional investors meeting the requirements of management method for investors
Appropriate arrangement of the investors eligibility of Shenzhen Stock Exchange which not exceeding 200 persons. “22 Konka 01” was offered
(if any) publicly to professional institutional investors meeting the requirements of Measures for the
Administration of Issuing and Trading Corporate Bonds and opening a qualified A-share securities
account in Shenzhen Branch of China Securities Depository and Clearing Corporation Limited."22 Konka 03" "22 Konka 05" "24 Konka 01" "24 Konka 02" "24 Konka 03": negotiate-and-deal
Applicable trade mechanism click-and-deal inquire-and-deal and bid-and-deal; "22 Konka 01": Match-and-deal negotiate-and-deal
click-and-deal inquire-and-deal and bid-and-deal
Risk of delisting (if any) and
countermeasures No
Overdue bonds
□ Applicable √ Not applicable
2. The Trigger and Execution of the Option Clause of the Issuers or Investors and the
Investor Protection Clause
□Applicable √ Not applicable
3. Intermediary
Bond Intermediary Office address Accountants Contact person ofwriting signatures intermediary Contact number
Industrial 32/F SK Building No. 6
Securities Co. Jianguomen Waidajie / Zhang HuifangZhang Ning 010-50911203Ltd Chaoyang District Beijing
Centralized Business
Finance and Business
ZTF Securities District Zone B Zhongtian
Co. Ltd. Exhibition City North / Qian Xi Cai Dan 0755-28777990Changling Road Guanshanhu
District Guiyang Guizhou
(North)
22 Konka 01 China LianheCredit Rating No.2 Jianwai Street
Co. Ltd. Chaoyang District Beijing
/ Liu Qi 010-85679696
Beijing 19-25/F Building 2 CP
Yingke Law Center Yard 20 Jinhe East Zhang Jinxing
Firm Road Chaoyang District
/ Han Jian 0755-36866600
Beijing
Shinewing 8/F Block A Fu Hua Guo DongchaoCertified
Public Mansion No. 8
Liu Lihong Zhan
Miaoling Liu Liu Jianhua Tang 028-62922886
Accountants Chaoyangmen Beidajie Qimei
LLP Dongcheng District Beijing
Jianhua Tang
Qimei
Industrial 32/F SK Building No. 6
Securities Co. Jianguomen Waidajie / Zhang Huifang 010-50911203
Ltd Chaoyang District Beijing Zhang Ning
Centralized Business
22 Konka 03 Finance and Business
22 Konka 05
ZTF Securities District Zone B Zhongtian
Co. Ltd. Exhibition City North / Qian Xi 0755-28777990Changling Road Guanshanhu
District Guiyang Guizhou
(North)
106Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Beijing 19-25/F Building 2 CP
Yingke Law Center Yard 20 Jinhe East Zhang Jinxing
Firm Road Chaoyang District
/ Han Jian 0755-36866600
Beijing
Shinewing 8/F Block A Fu Hua Guo DongchaoCertified
Public Mansion No. 8
Zhan Miaoling Liu Jianhua Tang
Chaoyangmen Beidajie Liu Jianhua Qimei 020-28309500Accountants
LLP Dongcheng District Beijing Tang Qimei
Industrial 32/F SK Building No. 6
Securities Co. Jianguomen Waidajie / Zhang Huifang 010-50911203
Ltd Chaoyang District Beijing Zhang Ning
China
Merchants No. 111 Fuhua 1st Road
Securities Co. Futian Street Futian District /
Chen Cheng Feng
Shenzhen Guangdong Shu
0755-82943666
Ltd.Sinolink 23/F Zizhu International
Securities Co. Building No. 1088 Fangdian Yao Heng Qing
Ltd. Road Pudong NewArea
/ Chunlin Zhu Jing 021-68826021
24 Konka 01 Shanghai
24 Konka 02 Century 16/F Building C Huahai
24 Konka 03 Securities Co. Financial Innovation Center Li Jiaqing Yang
Ltd. No. 5073 Menghai Avenue
/ Qi 0755-83199417
Nanshan District Shenzhen
Beijing 19-25/F Building 2 CP
Yingke Law Center Yard 20 Jinhe East / Zhang Jinxing
Firm Road Chaoyang District Han Jian
0755-36866600
Beijing
Shinewing
Certified 8/F Block A Fu Hua
Public Mansion No. 8 Tang Qimei and Tang Qimei and
Accountants Chaoyangmen Beidajie Liu Lihong Liu Lihong
020-28309500
LLP Dongcheng District Beijing
Did the intermediary change during the Reporting Period
□ Yes √ No
4. Use of raised funds
Unit: RMB'0000
Whether is
consistent
Rectificati
with the
Actual use of raised Operation on of
Actual use usage using
Total Agreed funds (classified by of special raised
Amount of funds Unused plan and
Code Abbr. raised purpose of purpose excluding account for funds for
spent for each amount other
funds raised funds temporary raised funds violation
category agreements
supplementary flow) (if any) operation
stipulated in
(if any)
the raising
specification
It has been
operating
well and
Used to All used to there has
22
repay Used to repay repay been no
149987 Konka 120000 120000 0 None Yes
corporate corporate bonds corporate violation of
01
bonds bonds relevant
regulations
and fund
supervision
107Full Text of 2024 Annual Report of Konka Group Co. Ltd.
agreements.It has been
operating
well and
All used to there has
Used to
22 repay been no
repay Used to repay
133306 Konka 60000 60000 interest- 0 violation of None Yes
interest- interest-bearing debt
03 bearing relevant
bearing debt
debt regulations
and fund
supervision
agreements.It has been
operating
well and
All used to there has
Used to
22 repay been no
repay Used to repay
133333 Konka 60000 60000 interest- 0 violation of None Yes
interest- interest-bearing debt
05 bearing relevant
bearing debt
debt regulations
and fund
supervision
agreements.It has been
operating
well and
All used to there has
Used to
24 repay been no
repay Used to repay
133759 Konka 150000 150000 interest- 0 violation of None Yes
corporate corporate bonds
01 bearing relevant
bonds
debt regulations
and fund
supervision
agreements.It has been
operating
well and
All used to there has
Used to
24 repay been no
repay Used to repay
133782 Konka 40000 40000 interest- 0 violation of None Yes
corporate corporate bonds
02 bearing relevant
bonds
debt regulations
and fund
supervision
agreements.It has been
operating
well and
All used to there has
Used to
24 repay been no
repay Used to repay
133783 Konka 40000 40000 interest- 0 violation of None Yes
corporate corporate bonds
03 bearing relevant
bonds
debt regulations
and fund
supervision
agreements.The raised funds were used for project construction
108Full Text of 2024 Annual Report of Konka Group Co. Ltd.
□Applicable √ Not applicable
The Company changed the usage of above funds raised from bonds during the Reporting
Period.□ Applicable √ Not applicable
5. Adjustment of Credit Rating Results during the Reporting Period
□Applicable √ Not applicable
6. Execution and Changes of Guarantee Repayment Plan and Other Repayment
Guarantee Measures as well as Influence on Equity of Bond Investors during the Reporting
Period
√ Applicable □ Not applicable
Overseas Chinese Town Holdings Company provides full unconditional and irrevocable joint
liability guarantee for "22 Konka 01" "22 Konka 03" "22 Konka 05" "24 Konka 01" "24 Konka
02" and "24 Konka 03". During the reporting period the Company's guarantee debt repayment plan
and other debt repayment safeguard measures were implemented in accordance with the agreement
and there was no change which had no significant impact on the rights and interests of bond
investors.III. Debt Financing Instruments of Non-financial Enterprises
□Applicable √ Not applicable
No such cases in the Reporting Period.IV. Convertible Corporate Bonds
□Applicable √ Not applicable
No such cases in the Reporting Period.V. Losses of Scope of Consolidated Financial Statements during the Reporting Period
Exceeding 10% of Net Assets up the Period-end of Last Year
√ Applicable □ Not applicable
Impact on the company's
Item Details of loss Reason for loss production operation and
solvency
1. In 2024 the production efficiency of the Company's color The Company will adhere to
TV business improved and the product competitiveness the leadership of party
During the gradually increased. However affected by factors such as building continue to
reporting period intensified market competition continuous fluctuations in the thoroughly implement the new
Net profit the Company's supply chain and limited space for rigid cost reduction the development strategy of "one
attributable net profit loss company's color television business continued to be under axis two wheels and three
to the attributable to pressure and was still in a loss state. drives" make good use of four
listed shareholders of 2. In 2024 in order to accelerate the industrialization process special classes: unified
company’s listed companies of semiconductor business the Company continued to management asset
shareholde was RMB32.96 increase investment in the industrialization of MLED revitalization marketing
rs accounting for (collectively referred to as Micro LED and Mini LED) and integration and manufacturing
147.48% of the made certain progress in the sales of Mini LED display efficiency improvement
net assets. products. However as the Company's semiconductor business comprehensively promote
is still in the early stage of industrialization it has not reform and actively improve
achieved large-scale and efficient output which has affected the Company's operating
109Full Text of 2024 Annual Report of Konka Group Co. Ltd.
the Company's profitability. performance. The loss during
3. In 2024 based on the principle of prudence the Company the reporting period had no
made a provision for asset impairment of RMB1.345 billion significant impact on the
in accordance with accounting policies and estimates company's production
resulting in a decrease in profits. operation and solvency.
4. In 2024 the value changes of financial assets measured at
fair value held by the Company and the increase of contingent
consideration resulted in the Company's profit or loss from
changes in fair value of about RMB-363 million
VI. Matured Interest-bearing Debt excluding Bonds as as the Reporting Period
□Applicable √ Not applicable
VII. Whether there was any Violation of Rules and Regulations during the Reporting
Period
□ Yes √ No
VIII. The Major Accounting Data and the Financial Indicators of the Recent 2 Years of
the Company as at the End of the Reporting Period
Unit: RMB'0000
Item End of the reporting period End of the last year Increase/decrease
Current ratio 63.44% 87.69% -27.65%
Debt/asset ratio 92.65% 83.51% 9.14%
Quick ratio 49.28% 70.07% -29.67%
The reporting period Same period last year Increase/decrease
Net profit after deducting -320550.41 -291444.51 -9.99%
non-recurring profit or loss
EBITDA/debt ratio -11.96% -6.33% -5.63%
Times interest earned -5.29 -3.50 -51.14%
Times interest earned of cash 1.49 2.17 -31.34%
Times interest earned of -4.21 -2.39 -76.15%
EBITDA
Loan repayment rate 100.00% 100.00% 0.00%
Interest coverage 100.00% 100.00% 0.00%
110Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Section X Financial Report
I. Independent Auditor’s Report
Type of the independent auditor’s opinion Unmodified unqualified opinion
Date of signing this report April 11 2025
Name of the independent auditor Shinewing Certified Public Accountants LLP
Reference number of audit report XYZH/2025SZAA8B0176
Name of the certified public accountants DENG Dengfeng LIU Lihong
Audit Report
XYZH/2025SZAA8B0176
Konka Group Co. Ltd.All shareholders of Konka Group Co. Ltd.I. Audit Opinions
We have audited the financial statements of Konka Group Co. Ltd. (hereinafter referred to as Konka
Group) including the consolidated and parent company balance sheets as of December 31 2024 the
consolidated and parent company income statement consolidated and parent company cash flow
statement consolidated and parent company statement of changes in equity for the year 2024 and related
financial statement notes.We believe that the attached financial statements have been prepared in accordance with the
provisions of the Accounting Standards for Business Enterprises in all material respects and fairly reflect
the consolidated and parent company's financial position as of December 31 2024 as well as the
consolidated and parent company's operating results and cash flows for the year then ended.II. Basis for Forming Audit Opinions
We conducted the audit in accordance with the China Auditing Standards for Certified Public
Accountants. Our responsibilities under these standards are elaborated in the section "Responsibilities of
Certified Public Accountants in Auditing Financial Statements" of the audit report. According to the Code
of Professional Ethics for Chinese Certified Public Accountants we are independent of Konka Group and
have fulfilled other responsibilities in terms of professional ethics. We believe that the audit evidence we
have obtained is sufficient and appropriate providing a basis for issuing audit opinions.IV. Key Audit matters
The key audit matters are those that we based on our professional judgment consider to be the most
important for auditing the current financial statements. Corresponding measures to these matters is based
on the overall audit of the financial statements and the formation of audit opinions and we do not express
111Full Text of 2024 Annual Report of Konka Group Co. Ltd.
separate opinions on these matters.
1. Revenue Recognition Items
Key audit matter Corresponding measures
For detailed information disclosure please (1) Evaluate test and assess the effectiveness of
refer to the accounting policies described in the key internal control designs and operationsnotes to the financial statements “IV. Important related to revenue recognition;Accounting Policies and Accounting Estimates 34”
(2) Obtain the signed sales contract analyze theas well as “VI. Annotations to Major Items in therelevant terms of the sales contract and evaluateConsolidated Statements 48”.whether Konka Group's revenue recognition
The operating revenue confirmed in Konka policy complies with the requirements of the
Group's consolidated financial statements for 2024 Accounting Standards for Business Enterprises;
is RMB11.114764 billion mainly consisting of
(3) Obtain a list of customers for product sales
revenue from businesses such as color TVs white
from Konka Group and identify whether there is
goods printed circuit boards and semiconductors.a relationship between customers and Konka
Due to the importance of revenue to the overall
Group by querying their business information
financial statements and the risk of misstatement
and other methods;
caused by management manipulating revenue
recognition in order to achieve specific goals or (4) Perform analytical procedures on revenue
expectations we consider revenue recognition as a and costs to evaluate the reasonableness of
key audit matter. changes in sales revenue and gross profit margin;
(5) Check important sales contracts orders
invoices transfer of ownership vouchers bank
receipt vouchers invoices and other materials to
verify the authenticity completeness and
accuracy of revenue;
(6) Perform cut-off test on sales revenue.
2. Impairment of Inventory Items
Key audit matter Corresponding measures
For detailed information disclosure please (1) Understand and evaluate the design and
refer to the accounting policies described in the implementation of key internal controls relatednotes to the financial statements “IV. Important to the provision for inventory impairment and
112Full Text of 2024 Annual Report of Konka Group Co. Ltd.Accounting Policies and Accounting Estimates 17” test the effectiveness of key controls;as well as “VI. Annotations to Major Items in the
(2) Evaluate the appropriateness of accountingConsolidated Statements 9”.policies related to the provision for inventory
As of December 31 2024 the inventory book impairment;
balance of Konka Group was RMB3.3408005
(3) Implement on-site inventory monitoring
billion and the inventory impairment provision
procedures check the inventory count quantity
balance was RMB6.461523 billion. According to
based on sampling and observe the status of
the accounting policy of Konka Group inventory is
inventory;
measured at the lower of cost and net realizable
value at the end of the year. When the net realizable (4) Select inventory samples to perform a
value of inventory is lower than cost a provision for depreciation test based on historical cost sales
inventory impairment is made based on the expenses and relevant tax information
difference. Due to the provision for inventory combined with open market prices recent sales
impairment involving significant estimates by prices or future sales prices to check whether
management we have identified the impairment of the determination of the net realizable value of
inventory as a key audit matter. inventory is reasonable;
(5) Compare the net realizable value of inventory
with its book value and verify the accuracy of
the provision for inventory impairment.IV. Other Information
The management of Konka Group (hereinafter referred to as the management) is responsible for other
information. Other information includes the information covered in Konka Group's 2024 annual report but
does not include financial statements and our audit report.Our audit opinions on the financial statements do not cover other information and we do not issue
any form of assurance conclusion on other information either.Based on our audit of the financial statements our responsibility is to read other information and in
the process consider whether there are material inconsistencies or material misstatements with the
financial statements or the information we have learned during the audit.Based on the work we have performed if we determine that there are material misstatements in other
information we should report that fact. We have nothing to report in this regard.IV. Responsibilities of the management and governance for the financial statements
The management is responsible for preparing financial statements in accordance with the provisions
of the Accounting Standards for Business Enterprises to achieve fair presentation and designing
implementing and maintaining necessary internal controls to ensure that the financial statements are free
113Full Text of 2024 Annual Report of Konka Group Co. Ltd.
from material misstatement whether due to fraud or error.When preparing financial statements the management is responsible for assessing the going concern
capability of Konka Group disclosing matters related to going concern (if applicable) and applying the
going concern assumption unless the management plans to liquidate Konka Group terminate operations
or has no other realistic options.The governance layer is responsible for supervising the financial reporting process of Konka Group
Corporation.VI. Responsibilities of Certified Public Accountants in Auditing Financial Statements
Our objective is to obtain reasonable assurance as to whether the financial statements as a whole are
free from material misstatement due to fraud or error and to issue an audit report containing audit
opinions. Reasonable assurance is a high-level assurance but it does not guarantee that an audit conducted
in accordance with auditing standards will always detect the existence of a material misstatement.Misstatements may be caused by fraud or error and are generally considered material if it is reasonably
expected that the misstatements individually or in aggregate may affect the economic decisions made by
financial statement users based on the financial statements.In the process of conducting audit work in accordance with auditing standards we use professional
judgment and maintain professional skepticism. Meanwhile we also carry out the following tasks:
(1) Identify and evaluate the risks of material misstatement in financial statements due to fraud or error
design and implement audit procedures to address these risks and obtain sufficient and appropriate audit
evidence as the basis for issuing audit opinions. Due to the fact that fraud may involve collusion forgery
intentional omission false statements or override of internal controls the risk of failing to detect material
misstatements caused by fraud is higher than the risk of failing to detect material misstatements caused by
errors.
(2) Understand internal controls related to auditing to design appropriate audit procedures.
(3) Evaluate the appropriateness of management's selection of accounting policies and the
reasonableness of accounting estimates and related disclosures made.
(4) Draw conclusions on the appropriateness of the management's utilization of the going concern
assumption. In addition based on the obtained audit evidence a conclusion can be drawn on whether there
is significant uncertainty regarding the matters or circumstances that may lead to significant doubts about
the ability of Konka Group to continue as a going concern. If we conclude that there is significant
uncertainty audit standards require us to draw the attention of statement users to relevant disclosures in
the financial statements in the audit report; if the disclosure is insufficient we should express a non
unqualified opinion. Our conclusion is based on the information available as of the date of the audit report.However future events or circumstances may prevent Konka Group from continuing its operations.
114Full Text of 2024 Annual Report of Konka Group Co. Ltd.
(5) Evaluate the overall presentation structure and content of financial statements and assess whether
the financial statements fairly reflect relevant transactions and events.
(6) Obtain sufficient and pertinent audit evidence on the financial information of entities or business
activities within Konka Group to issue audit opinions on the financial statements. We are responsible for
guiding supervising and executing group audits and take full responsibility for audit opinions.We have communicated with the governance regarding the planned audit scope timeline and
significant audit findings including the internal control deficiencies identified during the audit that
deserve attention.We have also provided a statement to the governance regarding compliance with professional ethics
requirements related to independence and communicated with the governance regarding all relationships
and other matters that may reasonably be considered to affect our independence as well as relevant
preventive measures (if applicable).From the matters discussed with the governance we have identified which ones are most important
for the audit of the current financial statements and therefore constitute key audit matters. We describe
these matters in the audit report unless laws and regulations prohibit their public disclosure or in rare
cases if it is reasonably expected that the negative consequences of communicating a matter in the audit
report would outweigh the benefits in the public interest we determine that the matter should not be
communicated in the audit report.Shinewing Certified Public Accountants LLP Chinese Certified Public Accountant:
(Project Partner)
Chinese Certified Public Accountant:
Beijing China April 11 2025
II. Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Konka Group Co. Ltd.December 31 2024
Unit: RMB
115Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Item Ending balance Beginning balance
Current assets:
Monetary assets 4115767247.73 6506359577.02
Settlement reserve
Interbank loans granted
Trading financial assets 286648129.34 469636700.78
Derivative financial assets
Notes receivable 169675176.16 533171949.15
Accounts receivable 1458923066.70 1726545973.08
Receivables financing 63943324.53 173396326.14
Prepayments 124748412.59 165454311.51
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 989245120.86 989121067.51
Including: Interest receivable 6681258.01
Dividends receivable 941482.38
Financial assets purchased under resale agreements
Inventories 2694648186.93 3249897700.98
Including: data resources
Contract assets 2630508.60 2190385.93
Assets held for sale
Current portion of non-current assets
Other current assets 2168400012.47 2359159468.75
Total current assets 12074629185.91 16174933460.85
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt obligations
Long-term Receivables
Long-term equity investments 4728360853.49 5566483863.29
Investments in other equity instruments 16114932.00 23841337.16
Other non-current financial assets 1802409887.89 2009676398.00
Investment property 1650843239.51 1470226723.87
Fixed Assets 5005836928.31 5218297745.16
Construction in progress 873042499.04 860899498.68
Productive living assets
Oil and gas assets
Right-of-use assets 178185679.35 197054423.17
Intangible Assets 988045525.76 1087386015.34
Including: data resources
Development costs
116Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Including: data resources
Goodwill 22196735.11 22196735.11
Long-term prepaid expense 532181161.63 518919223.71
Deferred tax asset 1392239301.87 1426573982.16
Other non-current assets 1148677970.47 1248328806.16
Total non-current assets 18338134714.43 19649884751.81
Total assets 30412763900.34 35824818212.66
Current liabilities:
Short-term borrowings 5741171468.26 6390592056.27
Borrowings from the central bank
Interbank loans obtained
Trading financial assets
Derivative financial liabilities
Notes payable 1150310856.70 990482927.20
Accounts payable 2774615788.24 2726831675.97
Advances from customers 3481262.87
Contract liabilities 623555669.97 527975160.12
Financial assets sold under repurchase agreements
Customer deposits and interbank deposits
Payables for acting trading of securities
Payables for underwriting of securities
Employee benefits payable 243731849.78 304733103.63
Taxes payable 94612710.58 214417135.87
Other payables 1676154887.59 1922791905.14
Including: Interest payable
Dividends payable
Handling charges and commissions payable
Reinsurance payables
Liabilities directly associated with assets held for sale
Current portion of non-current liabilities 6655534395.19 5314147396.36
Other current liabilities 69876531.91 54330715.75
Total current liabilities 19033045421.09 18446302076.31
Non-current liabilities:
Insurance contract reserve
Long-term borrowing 5530649801.93 7779150079.88
Bonds payable 2295193501.05 2426992578.67
Including: Preferred shares
Perpetual bonds
Lease liabilities 146561588.52 160218818.92
Long-term payables 5504548.24 6135734.07
Long-term employee benefits payable 4608659.47 4718466.37
Provisions 428433732.19 304519839.80
117Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Deferred income 393437007.37 425135237.90
Deferred income tax liabilities 133299175.48 185026165.27
Other non-current liabilities 207378781.21 179996351.33
Total non-current liabilities 9145066795.46 11471893272.21
Total liabilities 28178112216.55 29918195348.52
Owners’ equity:
Share capital 2407945408.00 2407945408.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 512840575.73 526499506.76
Less: Treasury stock
Other comprehensive income -9040290.32 -13443558.44
Specific reserve 11249678.53 4657488.24
Surplus reserves 1244180364.24 1244180364.24
General risk reserves
Retained earnings -1797506898.08 1474561975.85
Total equity attributable to owners of the parent 2369668838.10 5644401184.65
company
Non-controlling interests -135017154.31 262221679.49
Total owners’ equity 2234651683.79 5906622864.14
Total liabilities and owners’ equity 30412763900.34 35824818212.66
Legal representative: CAO Shiping CFO: NIE Yong Head of the financial department: PING
Heng
2. Balance Sheet of the Parent Company
Unit: RMB
Item Ending balance Beginning balance
Current assets:
Monetary assets 2310021016.85 4739026071.80
Trading financial assets 286648129.34 469636700.78
Derivative financial assets
Notes receivable 18077864.64 212545745.69
Accounts receivable 2783399610.31 2907508425.51
Receivables financing
Prepayments 5060895887.42 3050914644.86
Other receivables 8210096432.41 7962523971.43
Including: Interest receivable 6325400.49
Dividends receivable 397729468.60 395209709.13
Inventories 143981116.62 74359735.29
Including: data resources
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 1621740187.04 1776247847.16
Total current assets 20434860244.63 21192763142.52
Non-current assets:
118Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Investments in debt obligations
Investments in other debt obligations
Long-term Receivables
Long-term equity investments 8801915477.55 8353187518.14
Investments in other equity instruments 10213810.20 17940215.36
Other non-current financial assets 396353137.96 396353137.96
Investment property 873925486.40 896398058.58
Fixed Assets 413605136.94 408039474.28
Construction in progress 12762103.76 10456702.05
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible Assets 36845184.32 44546041.59
Including: data resources
Development costs
Including: data resources
Goodwill
Long-term prepaid expense 32966195.77 43352655.77
Deferred tax asset 667646526.22 1186943851.11
Other non-current assets 969222.30 42958066.97
Total non-current assets 11247202281.42 11400175721.81
Total assets 31682062526.05 32592938864.33
Current liabilities:
Short-term borrowings 2312074875.00 2344154349.99
Trading financial assets
Derivative financial liabilities
Notes payable 94034764.53 83813428.75
Accounts payable 6342200859.52 6459535317.41
Advances from customers
Contract liabilities 2503838527.97 943718573.19
Employee benefits payable 27648867.42 65273780.70
Taxes payable 5299228.44 9069845.15
Other payables 4002505102.69 3471748973.76
Including: Interest payable
Dividends payable
Liabilities directly associated with assets held for
sale
Current portion of non-current liabilities 6441534654.07 5206842165.89
Other current liabilities 11512394.96 9728362.56
Total current liabilities 21740649274.60 18593884797.40
Non-current liabilities:
Long-term borrowing 4371231706.59 6655411621.10
Bonds payable 2295193501.05 2426992578.67
119Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits payable
Provisions 346376800.41 201607949.06
Deferred income 42829889.81 40966821.50
Deferred income tax liabilities 34882051.56 69803544.47
Other non-current liabilities 44189363.15 45682878.82
Total non-current liabilities 7134703312.57 9440465393.62
Total liabilities 28875352587.17 28034350191.02
Owners’ equity:
Share capital 2407945408.00 2407945408.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 339889142.56 341229750.75
Less: Treasury stock
Other comprehensive income -1281096.83 -1399371.64
Specific reserve
Surplus reserves 1260024039.76 1260024039.76
Retained earnings -1199867554.61 550788846.44
Total owners’ equity 2806709938.88 4558588673.31
Total liabilities and owners’ equity 31682062526.05 32592938864.33
3. Consolidated Income Statement
Unit: RMB
Item Year 2024 Year 2023
I. Revenue 11114763969.59 17849331429.24
Including: operating revenue 11114763969.59 17849331429.24
Interest revenue
Insurance premium income
Handling charge and commission income
II. Costs and expenses 13175666727.68 20267187420.23
Including: cost of sales 10626035183.90 17329091452.47
Interest costs
Handling charge and commission expense
Surrenders
Net insurance claims paid
Net amount provided as insurance contract
reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 125957334.99 105488040.47
Selling expense 774298036.87 965070146.99
Administrative expense 651947833.46 807527910.20
120Full Text of 2024 Annual Report of Konka Group Co. Ltd.
R&D expense 416405840.34 497993759.86
Finance costs 581022498.12 562016110.24
Including: Interest expense 819234748.93 884535066.01
Interest revenue 215619251.81 286969209.86
Add: Other income 110600310.12 270618031.94
Return on investment (“-” for loss) -40606278.44 675405221.53
Including: Share of profit or loss of joint -134541620.49 -170413352.22
ventures and associates
Income from the derecognition of -4519585.64 -3132035.83
financial assets at amortized cost (“-” for loss)
Exchange gain (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gains from fair value changes (losses expressed -363008154.15 -97937910.89
with "-")
Credit impairment loss (“-” for loss) -418711979.06 -456603000.84
Asset impairment loss (“-” for loss) -926456808.21 -560592965.39
Asset disposal income (“-” for loss) 13572230.63 54321.20
III. Operating profit (“-” for loss) -3685513437.20 -2586912293.44
Add: Non-operating revenue 36502107.29 26263072.49
Less: Non-operating expense 165575114.70 156685855.03
IV. Profit before tax (“-” for loss) -3814586444.61 -2717335075.98
Less: Income tax expense 69552329.00 -81448414.64
V. Net profit (“-” for net loss) -3884138773.61 -2635886661.34
(I) By operating continuity
1. Net profit from continuing operations (“-” for
net loss) -3884138773.61 -2635886661.34
2. Net profit from discontinued operations (“-” for
net loss)
(II) By ownership
1. Net profit attributable to shareholders of the -3295588668.77 -2163790053.17
parent company
2. Net profit attributable to non-controlling -588550104.84 -472096608.17
interests
VI. Other comprehensive income net of tax -2130878.00 -84979.37
Attributable to owners of the parent company 4403268.12 821623.19
(I) Items that will not be reclassified to profit or
loss
1. Changes caused by remeasurements on
defined benefit schemes
2. Other comprehensive income that will not be
reclassified to profit or loss under the equity method
3. Changes in the fair value of investments in
other equity instruments
4. Changes in the fair value arising from
changes in own credit risk
5. Others
(II) Items that will be reclassified to profit or loss 4403268.12 821623.19
1. Other comprehensive income that will be 1923432.88 -86041.63
reclassified to profit or loss under the equity method
2. Changes in the fair value of investments in
other debt obligations
121Full Text of 2024 Annual Report of Konka Group Co. Ltd.
3. Other comprehensive income arising from
the reclassification of financial assets
4. Credit impairment allowance for investments
in other debt obligations
5. Reserve for cash flow hedges
6. Differences arising from the translation of 2479835.24 907664.82
foreign currency-denominated financial statements
7. Others
Attributable to non-controlling interests -6534146.12 -906602.56
VII. Total comprehensive income -3886269651.61 -2635971640.71
Attributable to owners of the parent company -3291185400.65 -2162968429.98
Attributable to non-controlling interests -595084250.96 -473003210.73
VIII. Earnings per share
(I) Basic earnings per share -1.3686 -0.8986
(II) Diluted earnings per share -1.3686 -0.8986
Legal representative: CAO Shiping CFO: NIE Yong Head of the financial department: PING
Heng
4. Income Statement of the Parent Company
Unit: RMB
Item Year 2024 Year 2023
I. Operating revenue 1908123924.10 1847995092.79
Less: cost of sales 1929201916.99 1881538922.11
Taxes and surcharges 16346162.85 13005236.44
Selling expense 96063419.94 246475735.88
Administrative expense 185596812.40 294635923.59
R&D expense 27710971.97 33956995.43
Finance costs 414390626.68 417683630.95
Including: Interest expense 687907712.29 790542260.97
Interest revenue 252748895.39 357509620.15
Add: Other income 8811847.96 51184013.42
Return on investment (“-” for loss) 31201053.12 644677669.41
Including: Share of profit or loss of joint -29330307.37 -34502328.35
ventures and associates
Income from the derecognition of -1332512.07
financial assets at amortized cost (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gains from fair value changes (losses expressed -166949370.96 -133358646.82
with "-")
Credit impairment loss (“-” for loss) -139627123.83 -86470747.72
Asset impairment loss (“-” for loss) -205577693.21 -90170750.24
Asset disposal income (“-” for loss) 2842206.14 -17987.13
II. Operating profit (“-” for loss) -1230485067.51 -653457800.69
Add: Non-operating revenue 11728990.17 2160817.77
Less: Non-operating expense 71044286.57 87467742.44
III. Profit before tax (“-” for loss) -1289800363.91 -738764725.36
Less: Income tax expense 484375831.98 10424753.35
IV. Net profit (“-” for net loss) -1774176195.89 -749189478.71
122Full Text of 2024 Annual Report of Konka Group Co. Ltd.
(I) Net profit from continuing operations (“-” for net -1774176195.89 -749189478.71
loss)
(II) Net profit from discontinued operations (“-” for
net loss)
V. Other comprehensive income net of tax 118274.81 100628.36
(I) Items that will not be reclassified to profit or
loss
1. Changes caused by remeasurements on
defined benefit schemes
2. Other comprehensive income that will not be
reclassified to profit or loss under the equity method
3. Changes in the fair value of investments in
other equity instruments
4. Changes in the fair value arising from
changes in own credit risk
5. Others
(II) Items that will be reclassified to profit or loss 118274.81 100628.36
1. Other comprehensive income that will be 118274.81 100628.36
reclassified to profit or loss under the equity method
2. Changes in the fair value of investments in
other debt obligations
3. Other comprehensive income arising from the
reclassification of financial assets
4. Credit impairment allowance for investments
in other debt obligations
5. Reserve for cash flow hedges
6. Differences arising from the translation of
foreign currency-denominated financial statements
7. Others
VI. Total comprehensive income -1774057921.08 -749088850.35
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated Statement of Cash Flows
Unit: RMB
Item Year 2024 Year 2023
I. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of 10525465272.93 17378235561.44
services
Net increase in customer deposits and interbank
deposits
Net increase in borrowings from the central bank
Net increase in loans from other financial institutions
Premiums received on original insurance contracts
Net proceeds from reinsurance
Net increase in deposits and investments of policy
holders
Interest handling charges and commissions received
Net increase in interbank loans obtained
Net increase in proceeds from repurchase transactions
Net proceeds from acting trading of securities
Tax rebates 203389517.86 233820738.77
Cash generated from other operating activities 464756959.63 1091889678.99
Subtotal of cash generated from operating activities 11193611750.42 18703945979.20
123Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Payments for commodities and services 8054236938.71 14643693951.06
Net increase in loans and advances to customers
Net increase in deposits in the central bank and in
interbank loans granted
Payments for claims on original insurance contracts
Net increase in interbank loans granted
Interest handling charges and commissions paid
Policy dividends paid
Cash paid to and for employees 1561187041.71 1734831096.85
Taxes paid 402970523.26 466335778.71
Cash used in other operating activities 1001328403.75 1305983874.68
Subtotal of cash used in operating activities 11019722907.43 18150844701.30
Net cash generated from/used in operating activities 173888842.99 553101277.90
II. Cash flows from investing activities:
Proceeds from disinvestment 441500809.51 1463288277.00
Return on investment 37170842.27 140970812.05
Net proceeds from the disposal of fixed assets 59667217.18 27438051.10
intangible assets and other long-lived assets
Net proceeds from the disposal of subsidiaries and 165963074.98
other business units
Cash generated from other investing activities 186665829.14 683929746.03
Subtotal of cash generated from investing activities 725004698.10 2481589961.16
Payments for the acquisition of fixed assets 620482495.13 1476559951.04
intangible assets and other long-lived assets
Payments for investments 1400000.00 7200000.00
Net increase in pledged loans granted
Net payments for the acquisition of subsidiaries and
other business units
Cash used in other investing activities 134327401.00 529573236.98
Subtotal of cash used in investing activities 756209896.13 2013333188.02
Net cash generated from/used in investing activities -31205198.03 468256773.14
III. Cash flows from financing activities:
Capital contributions received 167597297.30 1978378.97
Including: Capital contributions by non-controlling 167597297.30 1978378.97
interests to subsidiaries
Borrowings raised 11581264358.29 10950030506.74
Cash generated from other financing activities 898936642.13 738205183.98
Subtotal of cash generated from financing activities 12647798297.72 11690214069.69
Repayment of borrowings 13426379153.79 10672675811.70
Interest and dividends paid 577370283.16 812403661.30
Including: Dividends paid by subsidiaries to non- 1204669.38 735000.00
controlling interests
Cash used in other financing activities 1686969576.16 1036318624.40
Subtotal of cash used in financing activities 15690719013.11 12521398097.40
Net cash generated from/used in financing activities -3042920715.39 -831184027.71
IV. Effect of foreign exchange rates changes on cash 8630197.33 22698315.32
and cash equivalents
V. Net increase in cash and cash equivalents -2891606873.10 212872338.65
Add: cash and cash equivalents beginning of the 5674784349.55 5461912010.90
period
VI. Cash and cash equivalents end of the period 2783177476.45 5674784349.55
6. Cash Flow Statement of the Parent Company
Unit: RMB
124Full Text of 2024 Annual Report of Konka Group Co. Ltd.
Item Year 2024 Year 2023
I. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of 6398186209.22 5703782163.83
services
Tax rebates 60530397.37 70166100.06
Cash generated from other operating activities 141831895.20 208374488.43
Subtotal of cash generated from operating activities 6600548501.79 5982322752.32
Payments for commodities and services 5971237961.40 6122040543.84
Cash paid to and for employees 179067665.39 250167106.81
Taxes paid 39982463.72 21411524.06
Cash used in other operating activities 307674460.32 382250859.55
Subtotal of cash used in operating activities 6497962550.83 6775870034.26
Net cash generated from/used in operating activities 102585950.96 -793547281.94
II. Cash flows from investing activities:
Proceeds from disinvestment 250174642.36 962711727.95
Return on investment 32599531.28 73394567.02
Net proceeds from the disposal of fixed assets 7077472.58 493918.22
intangible assets and other long-lived assets
Net proceeds from the disposal of subsidiaries and
other business units
Cash generated from other investing activities 5599069603.94 4984828057.53
Subtotal of cash generated from investing activities 5888921250.16 6021428270.72
Payments for the acquisition of fixed assets 28198069.47 126046197.64
intangible assets and other long-lived assets
Payments for investments 770369387.85 139400000.00
Net payments for the acquisition of subsidiaries and
other business units
Cash used in other investing activities 5493614221.91 3091985302.32
Subtotal of cash used in investing activities 6292181679.23 3357431499.96
Net cash generated from/used in investing activities -403260429.07 2663996770.76
III. Cash flows from financing activities:
Capital contributions received
Borrowings raised 9062107916.66 8177775555.56
Cash generated from other financing activities 9436937293.60 9919391242.45
Subtotal of cash generated from financing activities 18499045210.26 18097166798.01
Repayment of borrowings 10898013880.45 7748613878.32
Interest and dividends paid 564145163.75 816702948.88
Cash used in other financing activities 9422438355.78 10977125705.33
Subtotal of cash used in financing activities 20884597399.98 19542442532.53
Net cash generated from/used in financing activities -2385552189.72 -1445275734.52
IV. Effect of foreign exchange rates changes on cash 4656657.45 4531990.24
and cash equivalents
V. Net increase in cash and cash equivalents -2681570010.38 429705744.54
Add: cash and cash equivalents beginning of the 4263319288.76 3833613544.22
period
VI. Cash and cash equivalents end of the period 1581749278.38 4263319288.76
125Full Text of 2024 Annual Report of Konka Group Co. Ltd.
7. Consolidated Statements of Changes in Owners’ Equity
Current amount
Unit: RMB
Year 2024
Equity attributable to owners of the parent company
Item Other equity instrumentsShare Perpet Capital Less: Other Non-controlling
capital Preferred
Specific Surplus General risk Retained interests Total owners’ equity
shares ual Others reserves
Treasury comprehensive reserve reserves reserves earnings Others Subtotal
bonds stock income
I. Balance as at the end of the prior 2407945408. 526499 -13443558.44 4657488.2 12441803 147456197year 5644401184.65 262221679.49 5906622864.1400 506.76 4 64.24 5.85
Add: Adjustment for change in
accounting policy
Adjustment for correction of
previous error
Others
II. Balance as at the beginning of 2407945408. 526499 -13443558.44 4657488.2 12441803 147456197the year 506.76 4 64.24 5.85 5644401184.65 262221679.49 5906622864.1400
III. Increase/ decrease in the period - 6592190.2 -
(“-” for decrease) 136589 4403268.12 9 327206887 -3274732346.55 -397238833.80 -3671971180.3531.03 3.93
-
(I) Total comprehensive income 4403268.12 329558866 -3291185400.65 -595084250.96 -3886269651.61
8.77
(II) Capital increased and reduced -
by owners 136589 -13658931.03 196281483.71 182622552.6831.03
1. Ordinary shares increased by
owners 167597297.30 167597297.30
2. Capital increased by holders of
other equity instruments
3. Share-based payments included
in owners’ equity
-
4. Others 136589 -13658931.03 28684186.41 15025255.38
31.03
(III) Profit distribution 23519794.84 23519794.84 -1168043.64 22351751.20
1. Appropriation to surplus reserves
2. Appropriation to general risk
reserves
3. Appropriation to owners (or
shareholders) -1168043.64 -1168043.64
4. Others 23519794.84 23519794.84 23519794.84
(IV) Transfers within owners’
equity
1. Increase in capital (or share
capital) from capital reserves
2. Increase in capital (or share
capital) from surplus reserves
3. Loss offset by surplus reserves
4. Changes in defined benefit
schemes transferred to retained
earnings
126Full Text of 2024 Annual Report of Konka Group Co. Ltd.
5. Other comprehensive income
transferred to retained earnings
6. Others
(V) Special reserves 6592190.29 6592190.29 2731977.09 9324167.38
1. Increase in the period 7881927.49 7881927.49 3279715.07 11161642.56
2. Used in the period 1289737.20 1289737.20 547737.98 1837475.18
(VI) Others
IV. Balance as at the end of the 24079 -
period 45408.
51284011249678.12441803
00575.73
-9040290.325364.241797506892369668838.10-135017154.312234651683.798.08
Previous amount
Unit: RMB
Year 2023
Equity attributable to owners of the parent company
Item Other equity instruments Less: OtherShare Capital Non-controlling
capital Preferred Perpetual Others reserves Treasury
compreh Specific Surplus General risk Retained
ensive reserve reserves reserves earnings Others Subtotal interests
Total owners’ equity
shares bonds stock income
I. Balance as at the end of the prior 365247 -
year 240794 361.05 142651 1244180364 3637291770 7640399721.99 820973239.93 8461372961.925408.00 81.63 .24 .33
Add: Adjustment for change in
accounting policy 1060258.69 1060258.69 - 1060258.69
Adjustment for correction of
previous error - - - -
Others - - - -
II. Balance as at the beginning of 240794 365247
-
the year 361.05 142651 - 1244180364 3638352029 7641459980.68 820973239.93 8462433220.615408.00 81.63 .24 .02
III. Increase/ decrease in the period 161252 -
(“-” for decrease) 145.71 821623. 465748 2163790053 -1997058796.03 -558751560.44 -2555810356.4719 8.24 .17
-
(I) Total comprehensive income 821623. 2163790053 -2162968429.98 -473003210.73 -2635971640.71
19.17
(II) Capital increased and reduced 161252
by owners 145.71 161252145.71 -86392628.48 74859517.23
1. Ordinary shares increased by
owners -16021621.03 -16021621.03
2. Capital increased by holders of
other equity instruments - -
3. Share-based payments included
in owners’ equity - -
4. Others 161252145.71 161252145.71 -70371007.45 90881138.26
(III) Profit distribution -735000.00 -735000.00
1. Appropriation to surplus
reserves
2. Appropriation to general risk
reserves
3. Appropriation to owners (or
shareholders) -735000.00 -735000.00
4. Others
(IV) Transfers within owners’
equity
1. Increase in capital (or share
127Full Text of 2024 Annual Report of Konka Group Co. Ltd.
capital) from capital reserves
2. Increase in capital (or share
capital) from surplus reserves
3. Loss offset by surplus reserves
4. Changes in defined benefit
schemes transferred to retained
earnings
5. Other comprehensive income
transferred to retained earnings
6. Others
(V) Special reserves 465748 4657488.24 669962.82 5327451.06
8.24
1. Increase in the period 550921 5509215.43 933563.87 6442779.30
5.43
2. Used in the period 851727. 851727.19 263601.05 1115328.24
19
(VI) Others - - 709315.95 709315.95
IV. Balance as at the end of the -
period 240794 526499 - 134435 465748 1244180364 - 1474561975 5644401184.65 262221679.49 5906622864.145408.00 506.76 58.44 8.24 .24 .85
8. Statements of Changes in Owners’ Equity of the Parent Company
Current amount
Unit: RMB
Year 2024
Item Other equity instruments Less:
Share capital Preferred Perpetua Capital reserves Treasury Other comprehensive SpecificOthers income reserve Surplus reserves Retained earnings
Othe
rs Total owners’ equityshares l bonds stock
I. Balance as at the end of the prior year 2407945408.00 341229750.75 -1399371.64 1260024039.76 550788846.44 4558588673.31
Add: Adjustment for change in accounting policy
Adjustment for correction of previous error
Others
II. Balance as at the beginning of the year 2407945408.00 341229750.75 -1399371.64 1260024039.76 550788846.44 4558588673.31
III. Increase/ decrease in the period (“-” for
decrease) -1340608.19 118274.81 -1750656401.05 -1751878734.43
(I) Total comprehensive income 118274.81 -1774176195.89 -1774057921.08
(II) Capital increased and reduced by owners -1340608.19 -1340608.19
1. Ordinary shares increased by owners
2. Capital increased by holders of other equity
instruments
3. Share-based payments included in owners’
equity
4. Others -1340608.19 -1340608.19
(III) Profit distribution 23519794.84 23519794.84
1. Appropriation to surplus reserves
2. Appropriation to owners (or shareholders)
3. Others 23519794.84 23519794.84
(IV) Transfers within owners’ equity
1. Increase in capital (or share capital) from
capital reserves
2. Increase in capital (or share capital) from
surplus reserves
3. Loss offset by surplus reserves
4. Changes in defined benefit schemes transferred
128Full Text of 2024 Annual Report of Konka Group Co. Ltd.
to retained earnings
5. Other comprehensive income transferred to
retained earnings
6. Others
(V) Special reserves
1. Increase in the period
2. Used in the period
(VI) Others
IV. Balance as at the end of the period 2407945408.00 339889142.56 -1281096.83 1260024039.76 -1199867554.61 2806709938.88
Previous amount
Unit: RMB
Year 2023
Item Other equity instruments Less:
Share capital Preferred Perpetua Capital reserves Treasury Other comprehensive SpecificOthers income reserve Surplus reserves Retained earnings
Othe Total owners’ equity
shares l bonds stock rs
I. Balance as at the end of the prior year 2407945408.00 241044390.55 -1500000.00 1260024039.76 1306066395.60 5213580233.91
Add: Adjustment for change in accounting
policy
Adjustment for correction of previous error
Others -6088070.45 -6088070.45
II. Balance as at the beginning of the year 2407945408.00 241044390.55 -1500000.00 1260024039.76 1299978325.15 5207492163.46
III. Increase/ decrease in the period (“-” for
decrease) 100185360.20 100628.36 -749189478.71 -648903490.15
(I) Total comprehensive income 100628.36 -749189478.71 -749088850.35
(II) Capital increased and reduced by owners 100185360.20 100185360.20
1. Ordinary shares increased by owners
2. Capital increased by holders of other equity
instruments
3. Share-based payments included in owners’
equity
4. Others 100185360.20 100185360.20
(III) Profit distribution
1. Appropriation to surplus reserves
2. Appropriation to owners (or shareholders)
3. Others
(IV) Transfers within owners’ equity
1. Increase in capital (or share capital) from
capital reserves
2. Increase in capital (or share capital) from
surplus reserves
3. Loss offset by surplus reserves
4. Changes in defined benefit schemes
transferred to retained earnings
5. Other comprehensive income transferred to
retained earnings
6. Others
(V) Special reserves
1. Increase in the period
2. Used in the period
(VI) Others
IV. Balance as at the end of the period 2407945408.00 341229750.75 -1399371.64 1260024039.76 550788846.44 4558588673.31
129Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
I. Company Profile
1. Konka Group Co. Ltd. (hereinafter referred to as “the Company” and the “Group”
when including subsidiaries) is a joint-stock limited company reorganized from the former
Shenzhen Konka Electronic Co. Ltd. in August 1991 upon approval of the People’s
Government of Shenzhen Municipality and has its ordinary shares (A-share and B-share)
listed on Shenzhen Stock Exchange with prior consent from the People’s Bank of China
Shenzhen Special Economic Zone Branch. On August 29 1995 the Company was renamed
to “Konka Group Co. Ltd.” (unified social credit code: 914403006188155783) with its main
business electronic industry. Now the headquarters locates in No. 28 No. 12 Keji South Road
Science & Technology Park Yuehai Street Nanshan District Shenzhen Guangdong
Province.
2. Share capital
After the distribution of bonus shares allotments increased share capital and new shares
issued over the years as of December 31 2024 the Company has issued a total of
2407945408.00 shares (denomination of RMB1 per share) with a registered capital of
RMB2407945408.00.
3. The nature of the company's business and main operating activities
The Group was mainly engaged in consumer electronics and semiconductor businesses
conducting the production and sales of colour TVs white goods optoelectronic display
storage and printed circuit Boards etc.
4. The financial statements were approved by the Board of Directors of the Company for
disclosure on April 11 2025.II. Consolidation scope
The consolidated financial statements of the Group covers 105 subsidiaries such as
Shenzhen Konka Electronic Technology Co. Ltd. Anhui Konka Electronics Co. Ltd. and
Dongguan Konka Electronics Co. Ltd. Compared with last year 11 subsidiaries such as
Konka Huanjia Environmental Protection Technology Co. Ltd. Chengdu Konka Intelligent
Technology Co. Ltd. and Shenzhen Wankaida Technology Co. Ltd. are excluded due to
bankruptcy liquidation or de-registration in the current year.For details please refer to Note VIII “Changes in the Consolidation Scope” and Note IX
"Equity in Other Entities".A check list of corporate names and their abbreviations mentioned in this Report
130Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
No. Name Abbreviation
1 Shenzhen Konka Electronics Technology Co. Ltd. Electronic Technology
2 Nantong Haimen Konka Smart Technology Co. Ltd. Haimen Konka
3 Chengdu Konka Smart Technology Co. Ltd. Chengdu Konka Smart
4 Chengdu Konka Electronics Co. Ltd. Chengdu KonkaElectronics
5 Nantong Kangdian Intelligent Technology Co. Ltd Nantong Kangdian
6 Shenzhen Kangcheng Technology Innovation andDevelopment Co. Ltd. Shenzhen Kangcheng
7 Xiaojia Technology Co. Ltd. Xiaojia Technology
8 Liaoyang Kangshun Smart Technology Co. Ltd. Liaoyang Kangshun
9 Liaoyang Kangshun Renewable Resources Co. Ltd. Liaoyang KangshunRenewable
10 Nanjing Konka Electronics Co. Ltd. Nanjing Konka
11 Chuzhou Konka Precision Intelligent ManufacturingTechnology Co. Ltd. Chuzhou Konka
12 Guangdong Xingda Hongye Electronics Co. Ltd. XingDa HongYe
13 Shenzhen Konka Circuit Co. Ltd. Konka Circuit
14 Suining Konka Flexible Electronic Technology Co.Ltd. Konka Soft Electronic
15 Suining Konka Hongye Electronics Co. Ltd. Konka HongyeElectronics
16 Boluo Konka Precision Technology Co. Ltd. Boluo Konka Precision
17 Boluo Konka PCB Co. Ltd. Boluo Konka
18 Anhui Konka Tongchuang Electrical Appliances Co.Ltd. Anhui Tongchuang
19 Jiangsu Konka Smart Appliance Co. Ltd. Jiangsu Konka Smart
20 Anhui Konka Electrical Appliance Technology Co. Anhui ElectricalLtd. Appliance
21 Henan Frestec Refrigeration Appliance Co. Ltd. Frestec Refrigeration
22 Henan Frestec Electrical Appliances Co. Ltd. Frestec ElectricalAppliances
23 Henan Frestec Household Appliances Co. Ltd. Frestec HouseholdAppliances
24 Henan Frestec Smart Home Technology Co. Ltd. Frestec Smart Home
25 Shenzhen Konka Investment Holding Co. Ltd. Konka Investment
26 Yibin Konka Technology Park Operation Co. Ltd. Yibin Konka TechnologyPark
27 Shenzhen Konka Capital Equity InvestmentManagement Co. Ltd. Konka Capital
131Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
28 Konka Suiyong Investment (Shenzhen) Co. Ltd. Konka Suiyong
29 Shenzhen Konka Shengxing Industrial Co. Ltd. Shengxing Industrial
30 Shenzhen Konka Zhitong Technology Co. Ltd. Zhitong Technology
31 Konka Electronic Material Technology (Shenzhen) Konka ElectronicCo. Ltd. Material
32 Beijing Konka Electronic Co. Ltd. Beijing Konka Electronic
33 Tianjin Konka Technology Co. Ltd. Tianjin Konka
34 Suining Konka Industrial Park Development Co. Ltd. Suining Konka IndustrialPark
35 Suining Konka Electronic Technological Innovation Suining ElectronicCo. Ltd. Technological Innovation
36 Shanghai Konka Industrial Co. Ltd. Shanghai Konka
37 Yantai Kangjin Technology Development Co. Ltd. Yantai Kangjin
38 Shenzhen Konka Technology Industry Development Development of scienceCo. Ltd. and technology industry
39 Sichuan Konka Smart Terminal Technology Co. Ltd Sichuan Konka
40 Yibin Konka Smart Technology Co. Ltd. Yibin Smart
41 Shenzhen Konka Semiconductor Technology Co. Shenzhen KonkaLtd. Semiconductor
42 Chongqing Konka Technology Development Co.Ltd. Chongqing Konka
43 Kowin Memory Technology (Shenzhen) Co. Limited Kowin Memory(Shenzhen)
44 Kowin Memory Technology (Hong Kong) Co. Kowin Memory (HongLimited Kong)
45 Konka ChipCloud Semiconductor Technology Konka Xinyun(Yancheng) Co. Ltd. Semiconductor
46 Konka Cross-border (Hebei) Technology Konka Cross-borderDevelopment Co. Ltd. (Hebei)
47 Shenzhen Nianhua Enterprise Management Co. Ltd. Shenzhen Nianhua
48 Konka Huazhong (Hunan) Technology Co. Ltd. Konka Central China
49 Shenzhen Wankaida Science and Technology Co.Ltd. Wankaida
50 Shenzhen Konka Chuangzhi Electrical Appliances Shenzhen ChuangzhiCo. Ltd. Electrical Appliances
51 Suining Jiarun Property Co. Ltd. Suining Jiarun Property
52 Anhui Konka Electronics Co. Ltd. Anhui Konka
53 Anhui Kangzhi Trade Co. Ltd. Kangzhi Trade
54 Shenzhen Konka Telecommunications Technology TelecommunicationCo. Ltd. Technology
55 Konka Mobility Co. Limited Konka Mobility
56 Dongguan Konka Electronics Co. Ltd. Dongguan Konka
132Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
57 Suining Konka Smart Technology Co. Ltd. Suining Konka Smart
Chongqing Konka Optoelectronic Technology Co. Chongqing58 Ltd. OptoelectronicTechnology
59 Yibin Kangrun Environmental Technology Co. Ltd. Yibin Kangrun
60 Yibin Kangrun Medical Waste Centralized TreatmentCo. Ltd. Yibin Kangrun Medical
61 Ningbo Kanghanrui Electric Appliances Co. Ltd. Ningbo KanghanruiElectric Appliances
62 Jiangxi Konka New Material Technology Co. Ltd. Jiangxi Konka
63 Jiangxi High Transparent Substrate Material Jiangxi High TransparentTechnology Co. Ltd. Substrate
64 Jiangxi Xinfeng Microcrystalline Jade Co. Ltd. Xinfeng Microcrystalline
65 Konka Huanjia Environmental Technology Co. Ltd. Konka Huanjia
66 Konka Huanjia (Henan) Environmental TechnologyCo. Ltd. Konka Huanjia (Henan)
67 Shanxi Konka Smart Home Appliance Co. Ltd. Shanxi Konka Intelligent
68 Shenzhen Konka Pengrun Technology & IndustryCo. Ltd. Pengrun Technology
69 Jiaxin Technology Co. Ltd. Jiaxin Technology
70 Konka Ronghe Industrial Technology (Zhejiang) Co.Ltd. Konka Ronghe
71 Shenzhen Konka Unifortune Technology Co. Ltd. Konka Unifortune
72 Jiali International (Hong Kong) Limited Jiali International
73 Sichuan Kangjiatong Technology Co. Ltd. Kangjiatong
74 Jiangkang (Shanghai) Technology Co. Ltd. Jiangkang (Shanghai)Technology
75 Shenzhen Konka Intelligent Manufacturing Konka IntelligentTechnology Co. Ltd. Manufacturing
76 Hainan Konka Technology Co. Ltd. Hainan KonkaTechnology
77 Konka Ventures Development (Shenzhen) Co. Ltd. Konka Ventures
78 Yibin Konka Incubator Management Co. Ltd. Yibin Konka Incubator
79 Yantai Konka Healthcare Enterprise Service Co. Ltd. Yantai Konka
80 Chengdu Anren Konka Cultural and CreativeIncubator Management Co. Ltd. Chengdu Anren
81 Guiyang Konka Enterprise Service Co. Ltd. Konka Enterprise Service
82 Ji'an Konka Technology Industry Development Co.Ltd. Ji'an Konka
83 Konka (Europe) Co. Ltd. Konka Europe
84 Hong Kong Konka Co. Ltd. Hong Kong Konka
85 Hongdin International Trading Limited Hongdin Trading
133Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
86 Konka North America LLC Konka North America
87 Kanghao Technology Co. Ltd. Kanghao Technology
88 Hongdin Invest Development Limited Hongdin Investment
89 Chain Kingdom Memory Technologies Co. Limited Chain Kingdom MemoryTechnologies
Chain Kingdom
90 Chain Kingdom Semiconductor (Shaoxing) Co. Ltd. Semiconductor
(Shaoxing)
91 Hongjet (Hong Kong) Company Limited Hongjet
92 Chongqing Xinyuan Semiconductor Co. Ltd. Chongqing XinyuanSemiconductor
93 Anlu Konka Industry Operation Service Co. Ltd. Anlu Konka
94 Shenzhen Kanghong Dongsheng InvestmentPartnership (Limited Partnership) Kanghong Dongsheng
95 Guizhou Konka New Material Technology Co. Ltd. Guizhou Konka NewMaterial
96 Konka Smart Home Appliance (Shanxi) Industry Shanxi Smart HomeDevelopment Co. Ltd. Appliance
97 Guizhou Kanggui Material Technology Co. Ltd. Guizhou KangguiMaterials
98 Nantong Kanghai Technology Industry DevelopmentCo. Ltd. Nantong Kanghai
99 Chongqing Kangyiyun Business OperationManagement Co. Ltd. Chongqing Kangyiyun
100 Jiangxi Konka High-tech Park Operation and Jiangxi Konka High-techManagement Co. Ltd. Park
101 Shangrao Konka Electronic Technology Innovation
Shangrao Konka
Co. Ltd. Electronic TechnologyInnovation
102 Guizhou Konka New Energy Material Technology Guizhou Konka NewCo. Ltd. Energy
103 Zhejiang Konka Electronics Co. Ltd. Zhejiang KonkaElectronic
104 Zhejiang Konka Technology Industry Development Zhejiang KonkaCo. Ltd. Technology Industry
105 Xi'an Konka Intelligent Appliance Co. Ltd. Xi'an Konka Intelligent
106 Xi'an Konka Network Technology Co. Ltd. Xi'an Konka Network
107 Xi'an Kanghong Technology Industry Development Xi'an KanghongCo. Ltd. Technology Industry
108 Xi'an Konka Intelligent Technology Development Xi'an Konka IntelligentCo. Ltd. Technology
109 Anhui Konka Low Carbon Technology Co. Ltd. Anhui Konka LowCarbon
110 Shenzhen Kanghong Xintong Investment Partnership(Limited Partnership) Kanghong Xintong
111 Songyang Konka Smart Industry Operation Songyang IndustryManagement Co. Ltd. Operation
134Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
112 Shenzhen Kangyan Technology Co. Ltd. Kangyan Technology
113 Konka Photovoltaic Technology Co. Ltd. Konka PhotovoltaicTechnology
114 Songyang Konka Intelligent Technology Songyang KonkaDevelopment Co. Ltd. Intelligent
115 Konka North China (Tianjin) Technology Co. Ltd. Konka North China
116 Shenzhen Konka Digital Technology DevelopmentCo. Ltd. Digital Technology
III. Basis for the Preparation of Financial Statements
1. Basic for the Preparation
The Group's financial statements were prepared in accordance with the Accounting
Standards for Business Enterprises promulgated by the Ministry of Finance as well as guidelines
on accounting standards for business enterprises announcements on interpreting the accounting
standards for business enterprises and other related regulations (hereinafter collectively referred
to as the "Accounting Standards for Business Enterprises") as well as the disclosure regulations
of the General Provisions on Financial Reporting No. 15 for Companies Publicly Issuing
Securities (revised in 2023) by the China Securities Regulatory Commission (hereinafter referred
to as the "CSRC").
2. Going-concern
The consolidated net profit of the Group for 2024 was RMB-3.884 billion. As at
December 31 2024 the Group's net assets in the consolidated statements were RMB2.235
billion with an asset liability ratio of 92.65%.In view of the above the Board of Directors of the Company has prudently considered
the Group's future working capital operating conditions and available sources of financing
when assessing the Group's ability to continue as a going concern. The Group has formulated
the following plans and measures to reduce the pressure on working capital and improve its
financial position:
(1) The Group will focus on the development of its two main business segments
optimize asset allocation and deepen cost reduction and control. Efforts will be concentrated
on carrying out special work such as marketing reform manufacturing efficiency
improvement and No.1 product. The Company will anchor core products and focus on core
markets to steadily improve industrial specialization capabilities and further enhance the
overall profitability of the company.
(2) In January 2025 the government introduced a new round of "national subsidies"
policies which expanded the number of household appliances eligible for trade-in subsidies
from 8 categories last year to 12 categories. The Group will take this policy as an opportunity
135Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
to promote effective improvement of product structure and further enhance gross profit
margin.
(3) The Group will take active measures to activate various existing resources and
accelerate the return of funds.
(4) The Group will continue to communicate with commercial banks to alleviate the
pressure on the Group's working capital by obtaining bank credit lines. At the end of the
reporting period until the approval date of this financial report the Group has added
RMB2.327 billion in bank loans and repaid RMB2.913 billion in due debts on time. As at the
date of the financial statements the Group had a total unused approved bank credit line of
RMB7.652 billion.
(5) The Group will actively utilize policies and timely expand financing channels in the
capital market. The Group has applied to the Shenzhen Stock Exchange (hereinafter referred
to as the "Shenzhen Stock Exchange") for a non-public issuance of corporate bonds not
exceeding RMB2.4 billion (including RMB2.4 billion). On December 19 2024 the Group
received a non-objection letter from the Shenzhen Stock Exchange stating that Konka Group
Co. Ltd.'s non-public issuance of corporate bonds meets the listing conditions of the
Shenzhen Stock Exchange (SZH [2024] No. 866). The major shareholders will provide a full
unconditional and irrevocable unlimited joint and several liability guarantee for the Group's
bond issuance (Announcement No. 2024-47) which is to be issued at a later date.
(6) During its operation the Group has received continuous financial support from the
major shareholder. The major shareholde has provided a cumulative balance of RMB7.819
billion in shareholder guarantee. As of the date of issuance of this financial report the Group
has obtained a total of RMB2.125 billion (excluding interest) in shareholder loans from its
major shareholder.On the basis of full consideration of the above measures that the Group is implementing
or plans to implement the Board of Directors believes that it is appropriate for the Group to
prepare the financial statements on the basis of going concern for at least 12 months from
December 31 2024.IV. Important Accounting Policies and Estimations
Specific accounting policies and accounting estimates: The specific accounting policies
and accounting estimates formulated by the Group according to the actual production and
operation characteristics include provisions for bad debts of accounts receivable provisions
for inventory depreciation depreciation of fixed assets revenue recognition and measurement
etc.
1. Statement of Compliance with the Accounting Standards for Business
136Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Enterprises
The financial statements prepared by the Group are in compliance with in compliance
with the Accounting Standards for Business Enterprises which factually accurately and
completely present the Group's financial positions on December 31 2024 business results
and cash flows and other relevant information for 2024.
2. Fiscal Period
The Group’s fiscal year starts on January 1 and ends on December 31 of every year
according to the Gregorian calendar.
3. Operating Cycle
The normal operating cycle refers to the period from the purchase of assets for
processing to the realization of cash or cash equivalents by the Group. An operating cycle for
the Group is 12 months which is also the classification criterion for the liquidity of its assets
and liabilities.
4. Recording Currency
The Company uses RMB as the recording currency. Subsidiaries of the Group determine
their functional currency according to the main economic environment in which they operate.When preparing the financial statements the Group converts them into RMB according to the
method described in IV. 10(2) Conversion of foreign currency financial statements.
5. Methodology for Determining Materiality Criteria and Basis for Selection
The Group prepares and discloses financial statements adhering to the principle of
materiality. The disclosures in the notes to the financial statements cover matters involving
judgments about materiality criteria the methods for determining materiality thresholds and
the bases for selecting these criteria:
Methodology for
Disclosures involving Location of disclosure of this
Determining Materiality
materiality standard matter in the notes to the
Criteria and Basis for
judgments present financial statements
Selection
Individual amount
Significant individually bad Note VI. 4. Accounts receivable
exceeding
debt provisioned receivables (2)
RMB50000000
Receivables with significant
amount of bad debt provision Note VI. 4. Accounts receivable Individual amount
recovered or reversed during (3) exceeding RMB10 million
the year
137Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Methodology for
Disclosures involving Location of disclosure of this
Determining Materiality
materiality standard matter in the notes to the
Criteria and Basis for
judgments present financial statements
Selection
Write-off of significant Note VI. 4. Accounts receivable Individual amount
receivables in the year (4) exceeding RMB10 million
Significant accounts payable Individual amount
Note VI. 26. Accounts payable
aged over 1 year exceeding RMB10 million
Significant receipts in
advance and contractual
Note VI. 27; Note VI. 28; Note Individual amount
liabilities/projected
VI. 29; Note VI. 39 exceeding RMB10 million
liabilities/other payables aged
over 1 year
Increase or decrease in a
Significant construction in Note VI. 16. Construction in single asset during the
progress project progress (2) year or a balance
exceeding RMB0.1 billion
6. Accounting Treatment Methods for Business Combinations under the Same
Control or not under the Same Control
(1) Business combinations under common control
A business combination involving entities under common control is a business
combination in which all of the combining enterprises are ultimately controlled by the same
party or parties both before and after the combination and that control is not transitory.As the combining party the assets and liabilities obtained by the Group in a business
combination under the same control shall be measured on the basis of their book value in the
final controlling party on the combining date. The difference between the book value of the
net assets acquired and the book value of the consideration paid for the combination (or the
total par value of the shares issued) is used to adjust the capital reserves; In case the capital
reserves are insufficient to cover the difference the retained earnings will be adjusted.
(2) Business combinations not under common control
A business combination involving entities not under common control is a business
combination in which all of the combining enterprises are not ultimately controlled by the
same party or parties both before and after the combination.As purchaser the identifiable assets liabilities and contingent liabilities of the acquiree
acquired in the business combination under different control shall be measured at fair value
138Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
on the acquisition date. The difference of the combination costs in excess of the fair value of
the identifiable net assets acquired from the acquiree shall be recognized as goodwill; If the
combination costs are less than the fair value of the identifiable net assets acquired from the
acquiree in the combination the fair values of the identifiable assets liabilities and contingent
liabilities acquired from the combination and the combination costs shall be reviewed first.After review if the combination costs are still less than the fair value the difference shall be
included in the current non-operating revenue of the combination.
7. Criteria for Judging Control and Methods for Preparing Consolidated Financial
Statements
The scope of consolidation for the consolidated financial statements of the Group is
based on control including the Company and all its subsidiaries (including enterprises
divisible parts of investees and structured entities controlled by the Company). The Group
assesses control based on whether it has power over the investee has exposure or rights to
variable returns from its involvement with the investee and has the ability to use its power
over the investee to affect the amount of the investor's returns.The financial statements of subsidiaries are adjusted in accordance with the accounting
policies and accounting period of the Group during the preparation of the consolidated
financial statements where the accounting policies and the accounting periods are
inconsistent between the Group and subsidiaries.The impact of internal transactions between the Company and its subsidiaries as well as
between subsidiaries and each other was offset in consolidation. The shares of the
subsidiary's owner's equity that do not belong to the parent Group and the shares of minority
shareholders' equity in current net profit and loss other comprehensive income and total
comprehensive income shall be respectively listed in the consolidated financial statement
"Minority shareholders' equity minority shareholders' profit and loss other comprehensive
income that belongs to minority shareholders and total comprehensive income that belongs to
minority shareholders".For subsidiaries acquired through business combinations under the same control their
operating results and cash flows are included in the consolidated financial statements from the
beginning of the current merger period. When preparing the comparative consolidated
financial statements the relevant items in the financial statements of the previous year shall
be adjusted as if the consolidated reporting entity had existed since the final controlling party
began to control it.If the equity of the investee under the same control is acquired in stages through multiple
transactions to eventually result in a business combination additional disclosures of the
treatment method in the consolidated financial statements shall be made in the reporting
139Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
period in which control is obtained. For example if the equity of the investee under the same
control is acquired in stages through multiple transactions to eventually result in a business
combination in preparing the consolidated statements the adjustment shall be made as if the
Group has existed in its current state when the ultimate controller starts to control it; in
preparing the comparative statements the Group shall incorporate the relevant assets and
liabilities of the combined party into the comparative statements of the consolidated financial
statements of the Group to the extent of not earlier than the time when the Group and the
combined party are under the control of the ultimate controller and the relevant items under
the owners' equity in the comparative statements shall be adjusted for the net assets increased
due to the combination. In order to avoid double counting of the value of the net assets of the
combined party for the long-term equity investment held by the Group before the
combination the recognized relevant profit or loss other comprehensive income and other
changes in net assets between the later of the date of acquisition of the original equity and the
date when the Company and the combined party are under the same party's final control and
the date of combination shall offset the retained earnings as at the beginning of the
comparative statement period and the current profit or loss respectively.For subsidiaries acquired through business combination under the different control the
operating results and cash flow shall be included in the consolidated financial statements from
the date when the Group obtains the control right. When preparing the consolidated financial
statements the financial statements of the subsidiaries shall be adjusted on the basis of the fair
value of the identifiable assets liabilities and contingent liabilities determined on the
acquisition date.If the equity of the investee not under the same control is acquired in stages through
multiple transactions to eventually result in a business combination additional disclosures of
the treatment method in the consolidated financial statements shall be made in the reporting
period in which control is obtained. For example if the equity of the investee not under the
same control is acquired in stages through multiple transactions to eventually result in a
business combination in preparing the consolidated statements the equity of the acquiree
held before the acquisition date shall be remeasured at the fair value of the equity on the
acquisition date and the difference between the fair value and its book value shall be included
in the current investment income; other comprehensive income under the equity method
involved in the equity of the acquiree held before the acquisition date related to it and changes
in other owners' equity other than net profit or loss other comprehensive income and profit
distribution are converted into the current investment profit or loss on the acquisition date
except for other comprehensive income arising from the re-measurement of changes in net
liabilities or net assets under the defined benefit plan by the investee.For partial disposal of long-term equity investments in subsidiaries in the case of not
140Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
losing control in the consolidated financial statements the capital premiums or share
premiums shall be adjusted according to the difference between the disposal price and the
share which should be enjoyed for the disposal of long-term equity investments in the net
assets of the subsidiary continuously calculated from the acquisition date or the combination
date; if the capital reserves are insufficient to offset retained earnings will be adjusted.When the Group losses the control over the investee due to disposal of partial equity
investment or other reasons the remaining equity shall be remeasured by the Group at the fair
value thereof on the date of losing the control while preparing the consolidated financial
statements. The difference of the sum of the consideration acquired from disposal of equities
and the fair value of the remaining equities less the share calculated at the original
shareholding ratio in net assets of the original subsidiary which are continuously calculated as
of the acquisition date or the combination date shall be included in the investment profit or
loss of the period in which the control is lost and goodwill shall be offset at the same time.Amount of the other comprehensive income relating to the equity investment of the original
subsidiary shall be transferred to the current profit or loss at the time of losing the control
right.If the Group disposes of the equity investment in subsidiaries in stages through multiple
transactions until it loses control and the transactions that dispose of the equity investment in
subsidiaries until it loses control belong to a package deal the transactions shall be accounted
for as a transaction that disposes of subsidiaries and loses control; However before loss of
control the difference between each disposal price and the share of the subsidiary's net assets
corresponding to the disposal of investment is recognized as other comprehensive income in
consolidated financial statements and is transferred into the current investment profit or loss
on the loss of control at the time of loss of control.
8. Classification of Joint arrangements and Accounting Treatment of Joint
Operations
The Group classifies joint arrangements into joint operations and joint ventures. For a
joint operation the Group as a joint operator recognizes the assets and liabilities that it holds
and bears in the joint operation and recognizes the jointly-held assets and jointly-borne
liabilities according to the Group’s stake in the joint operation; recognizes relevant income
and expense according to the Group’s stake in the joint operation. When the Group purchases
or sells the assets not constituting business with the joint operation the Group only
recognized the share of the other joint operators in the gains and losses arising from the
transaction.
9. Cash and cash equivalents
Cash in the Group's statement of cash flows refers to cash on hand and unrestricted
141Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
deposits. For the purpose of the statement of cash flows cash equivalents refer to highly
liquid investments that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of change in value with a holding period of not more than 3
months.
10. Foreign Currency Businesses and Translation of Foreign Currency Financial
Statements
(1) Foreign currency transaction
Foreign currency transactions of the Group are initially recognized at the exchange rate
at the beginning of the month of the transaction date (usually referring to the middle rate of
the foreign exchange rate announced by the People's Bank of China on the day the same
below) converting the foreign currency amount into the functional currency amount. On the
balance sheet date the monetary items in foreign currency were converted into RMB at the
spot exchange rate on balance sheet date. Except the exchange difference arising from special
foreign-currency borrowing for the purpose of construction or production of assets meeting
capitalization conditions treated in the principle of capitalization the conversion difference
was directly included in the current profit or loss.
(2) Translation of foreign currency financial statement
When preparing the consolidated financial statements the Group translates the financial
statements of overseas operations into RMB in which: assets and liabilities in the foreign
currency balance sheet are translated at the spot exchange rate on the balance sheet date;
Owners' equity items except for "undistributed profits" are translated at the spot exchange
rate when the business occurs; The income and expense items in the income statement are
translated at the average exchange rate of the current period (the average exchange rate of the
month) on the date when the transactions occur. The conversion difference of foreign
currency statements arising from the aforementioned conversion was presented in other
comprehensive income item. The foreign currency cash flow was converted at the average
exchange rate for the period (monthly average exchange rate) of the cash flow occurrence
date. The amount of exchange rate change influence on cash was independently presented in
cash flow statement.
11. Financial Instruments
(1) Recognition and derecognition of financial instruments
The Group recognizes a financial asset or liability when it becomes a party of the
relevant financial instrument contract.If the following conditions are met a financial asset (or a part of a financial asset or a
part of a group of similar financial assets) shall be derecognized that is the previously
142Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
recognized financial asset shall be transferred from the balance sheet: 1) the right to receive
the cash flows of the financial asset expires; 2) When the financial assets are transferred the
Group has transferred almost all the risks and rewards of ownership of the financial assets; 3)
When a financial asset is transferred the Group neither transfers nor retains substantially all
the risks and rewards of ownership of the financial asset nor retains control over the financial
asset.In case of current obligation of financial liabilities (or partial financial liabilities) being
terminated derecognition of such financial liabilities (or partial financial liabilities) is
conducted by the Group. If the Group (borrower) concludes an agreement with the lender to
replace existing financial liabilities with new ones and contact terms of new financial
liabilities are different from those of existing financial liabilities derecognition of existing
financial liabilities and recognition of new financial liabilities shall be conducted. In case of
material alteration of contract terms of existing financial liabilities (partial financial liabilities)
by the Group derecognition of existing financial liabilities and recognition of new financial
liabilities as per modified terms shall be conducted. In case of derecognition of financial
liabilities (partial financial liabilities) the Group includes the balance between its book value
and payment consideration into the current profit or loss.All regular acquisitions or sales of financial assets are recognized and derecognized on a
transaction date basis.
(2) Classification and measurement of financial assets
At initial recognition the Group's financial assets are classified into financial assets
measured at amortized cost financial assets measured at fair value through other
comprehensive income and financial assets measured at fair value through current profit or
loss according to the Group's business model for managing financial assets and the
contractual cash flow characteristics of financial assets. All affected related financial assets
will be reclassified if and only when the Group changes its business model for managing
financial assets.The Group classified the financial assets meeting the following conditions at the same
time as financial assets at amortized cost: * The business mode of the Group to manage the
financial assets targets at collecting the contractual cash flow. * The contract of the financial
assets stipulates that the cash flow generated in the specific date is the payment of the interest
based on the principal and outstanding principal amount. These financial assets are initially
measured at fair value and relevant transaction cost is included into the initially recognized
amount; Subsequent measurement is carried out at amortized cost. Except for those
designated to be hedge items the difference between the initial recognized amount and the
amount due shall be amortized at actual interest rate and their amortization impairment and
143Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
exchange gain and loss as well as gains or losses arising from derecognition shall be recorded
into the current profit or loss.The Group classifies the financial assets meeting the following conditions
simultaneously as financial assets measured at fair value through other comprehensive income:
* the business model for managing this financial asset aims at both collecting contractual
cash flows and selling the financial asset.* The contract of the financial assets stipulates that
the cash flow generated in the specific date is the payment of the interest based on the
principal and outstanding principal amount. These financial assets initially measured at fair
value and relevant transaction cost shall be included into the initial recognized amount.Except for those designated as hedged items any other gains or losses arising from such
financial assets except for credit impairment losses or gains exchange profit or loss and
interest on the financial asset calculated using the effective interest rate method is included in
other comprehensive income; When financial assets are derecognized the accumulated gains
or losses previously included in other comprehensive income shall be transferred from other
comprehensive income and included in the current profit or loss.The Group recognizes interest income according to the effective interest rate method.Interest income is calculated and determined according to the book balance of the financial
asset multiplied by the actual interest rate except for the following circumstances: * For the
financial asset with credit impairment that has been purchased or originated from the initial
recognition the interest income is calculated and determined according to the amortized cost
of the financial asset and the actual interest rate adjusted by credit. * For financial assets
purchased or originated that have not suffered credit impairment but have suffered credit
impairment in subsequent periods the interest income shall be calculated and determined
according to the amortized cost and actual interest rate of the financial assets in subsequent
periods.The Group designates non-trading equity instrument investments as financial assets
measured at fair value through other comprehensive income. Such designation once made
may not be revoked. The non-trading equity instrument investments designated by the Group
to be measured at fair value through other comprehensive income are initially measured at fair
value and the relevant transaction costs are included in the initial recognition amount; Except
for dividends obtained (except for the recovery of investment costs) which are included in the
current profit and loss other relevant gains and losses (including exchange profit or loss) are
included in other comprehensive income and shall not be subsequently transferred to the
current profit or loss. Except for dividends (excluding those belonging to recovery of
investment cost) which shall be recorded into the current profit or loss other relevant gains
and losses (including exchange gains and losses) shall be recorded into other comprehensive
income and cannot be transferred into the current profit or loss subsequently. When
144Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
derecognized the accumulated gains or losses originally recorded into other comprehensive
income shall be transferred out into retained earnings. Equity instrument investments
measured at fair value through other comprehensive income included: Equity investments to
be held in the long term as planned by the Group for strategic purpose with no control joint
control or significance influence and with no active market quotation.For financial assets other than those classified as financial assets measured at amortized
cost and financial assets measured at fair value through other comprehensive income The
Group classifies them as financial assets measured at fair value through current profit or loss.These financial assets are initially measured at fair value and the relevant transaction costs
are directly included in the current profit or loss. Gains or losses arising from these financial
assets is recorded into the current profit or loss.The contingent consideration recognized by the Group in the business combination not
under the same control which constitutes a financial asset is classified as the financial assets
measured at fair value through current profit or loss.
(3) Classification recognition and measurement of financial liabilities
The Group’s financial liabilities are on initial recognition classified into financial
liabilities at fair value through profit or loss and other financial liabilities.Financial liabilities at fair value through profit or loss include held-for-trading financial
liabilities and financial liabilities designated at the initial recognition to be measured by the
fair value and their changes are recorded in the current profit or loss. The subsequent
measurement shall be at fair value and gains or losses arising from changes in fair value and
the dividends and interest expense related to the financial liability shall be the current profit or
loss.Other financial liabilities shall be subsequently measured at amortized cost with actual
interest rate. The Group classifies financial liabilities except for the following items as
financial liabilities at amortized cost: * Financial liabilities at fair value through profit or loss
including held-for-trading financial liabilities (including the derivative instruments belonging
to financial liabilities) and designated financial liabilities at fair value through profit or loss.* Financial liabilities arising from the transfer of financial assets not meeting the
derecognition conditions or continuous involvement in the transferred financial assets.* Financial guarantee contract not belonging to cases of above * or * and loan
commitments at interest rate lower than the market rate not belonging to the case in* .The Group treats the financial liability arising from contingent consideration recognized
as the purchase party in the business combination not under the same control at fair value and
changes thereof shall be recorded into the current profit or loss.
145Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
(4) Impairment of financial instruments
Based on expected credit loss the Group recognizes impairment and provisions for
losses on financial assets measured at amortized cost debt investments measured at fair value
with changes in fair value recognized in other comprehensive income contract assets lease
receivables loan commitments and financial guarantee contracts.
1) Measurement of expected credit loss
Expected credit loss refers to the weighted average of the credit losses of financial
instruments weighted by the risk of default. Credit loss refers to the difference between all
receivable contract cash flows and all expected cash flows that are discounted to the present
value based on the original actual interest rate -- the present value of all cash shortfall.Expected credit loss throughout the lifespan refers to the expected credit loss caused by
all possible default events that may occur during the expected lifespan of a financial
instrument. Expected credit loss in the next 12 months refers to the expected credit loss
caused by a financial instrument default event that may occur within 12 months after the
balance sheet date (if the expected lifespan of the financial instrument is less than 12 months
the actual expected lifespan applies) which is a part of the expected credit loss during the
entire lifespan.For accounts receivable notes receivable receivables financing contract assets and
other receivables arising from daily operating activities such as sales of goods and rendering
of labor services if they do not contain significant financing components the Group adopts a
simplified measurement method to measure the loss provision at the amount equivalent to the
expected credit loss during the entire lifespan.For lease receivables receivables containing significant financing components and
contract assets the Group adopts the simplified measurement method to measure the loss
provision at the amount equivalent to the expected credit loss over the entire lifespan.For financial assets (such as debt investments other debt investments and other
receivables) loan commitments and financial guarantee contracts other than those measured
with the above-mentioned simplified measurement method the Group adopts the general
method (three-stage method) to accrue the expected credit loss. On each balance sheet date
the Group assesses whether there is significant increase in credit risk since initial recognition.If the credit risk has not increased significantly since initial recognition it is in the first stage.In this case the Group accrues the loss provision at the amount equivalent to the expected
credit loss in the next 12 months and calculates the interest income according to the book
balance and the effective interest rate; If the credit risk has increased significantly since initial
recognition but credit impairment has not occurred it is in the second stage. In this case the
Group accrues the loss provision at an amount equivalent to the expected credit loss during
146Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
the entire lifespan and calculates the interest income according to the book balance and the
effective interest rate; If a credit impairment occurs after initial recognition it is in the third
stage. In this case the Group accrues the loss provision at an amount equivalent to the
expected credit loss over the entire lifespan and calculates the interest income at amortized
cost and effective interest rate.For financial instruments with low credit risk on the balance sheet date the Group
assumes that there is no significant increase in their credit risk since initial recognition.Regarding the Group's criteria for determining significant increases in credit risk and the
definition of assets with credit impairment please refer to Note XI. 1(2) for disclosure.When the Group uses the expected credit loss model to assess the impairment of
financial instruments and contract assets the expected changes in the debtors' credit risk are
inferred based on historical repayment data and in combination with economic policies
macroeconomic indicators industry risks and other factors. Different estimates may affect the
provision for impairment therefore the provision for impairment already made may not be
equal to the actual amount of impairment loss in the future.
2) Portfolio category and determination basis of provision for impairment made by
portfolio with credit risk characteristics
The Group assesses the expected credit loss of financial instruments on an individual and
portfolio basis. When assessing on a portfolio basis the Group divides financial instruments
into different groups based on common credit risk characteristics. The common credit risk
characteristics adopted by the Group include: type of financial instrument credit risk rating
and aging of accounts receivable.
3) Judgment criteria for individual provision for impairment of bad debts based on
individual basis
If the credit risk characteristics of a customer are significantly different from those of
other customers in the portfolio or the credit risk characteristics of the customer have
changed significantly such as accounts receivable from related parties; accounts receivable in
dispute with the other party or involved in litigation or arbitration; accounts receivable with
obvious signs that the debtor is likely to be unable to perform its repayment obligations.
4) Write-off of provision for impairment
When the Group no longer reasonably expects to recover all or part of the cash flows
from financial asset contracts the Group directly reduces the carrying amount of the financial
asset. If the written-down financial assets are recovered later they are included in the current
profit or loss as the reversal of the impairment loss.
(5) Recognition and measurement of financial asset transfers
147Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
The Group derecognizes the financial assets that meet one of the following conditions:
* the contractual right to receive the cash flow from the financial assets is terminated; * the
financial assets have been transferred and the Group has transferred almost all the risks and
rewards of ownership of the financial assets;* the financial assets have been transferred and
the Group has neither transferred nor retained almost all risks and rewards of ownership of the
financial assets nor has it retained control over the financial assets.If the overall transfer of financial assets fulfills the requirements for derecognition the
difference between the book value of the transferred financial assets and the sum of the
consideration received due to the transfer and the corresponding derecognition part of the
accumulated amount of fair value changes originally directly included in other comprehensive
income (the contract terms involving the transferred financial assets stipulate that the cash
flow generated on a specific date is only the payment of the principal and interest based on
the unpaid principal amount) shall be included in the current profits and losses.If the partial transfer of financial assets satisfies the conditions for termination
confirmation the entire book value of the transferred financial assets will be apportioned
between the termination confirmation portion and the non-termination confirmation portion
according to their relative fair values and the consideration received for the transfer And the
amount corresponding to the termination of the recognition of the cumulative amount of
changes in fair value originally included in other comprehensive income that should be
apportioned to the derecognition part And the payment of interest based on the outstanding
principal amount) and the difference between the total book value of the aforesaid financial
assets allocated is included in the current profit and loss.
(6) The distinction between financial liabilities and equity instruments and related
treatment methods
The Group distinguishes the financial liabilities and equity instruments according to the
following principles: (1) If the Group cannot unconditionally avoid performing a contractual
obligation by delivering cash or other financial assets the contractual obligation meets the
definition of financial liabilities. Although some financial instruments do not explicitly
include the terms and conditions of the obligation to deliver cash or other financial assets
they may indirectly form contractual obligations through other terms and conditions. (2) If a
financial instrument must be settled with or can be settled with the Group's own equity
instrument it is necessary to consider whether the Group's own equity instrument used to
settle the instrument is used as a substitute for cash or other financial assets or to enable the
holder of the instrument to enjoy the residual equity in the assets of the issuer after deducting
all liabilities. If the former the instrument is a financial liability of the issuer; If the latter the
instrument is an equity instrument of the issuer. In some cases a financial instrument contract
requires the Group to use or use its own equity instrument to settle the financial instrument in
148Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
which the amount of contractual rights or contractual obligations is equal to the number of its
own equity instruments available or to be delivered multiplied by its fair value at the time of
settlement regardless of whether the amount of contractual rights or obligations is fixed
whether it is entirely or partially based on changes in variables other than the market price of
the Group's own equity instruments the contract shall be classified as a financial liability.In classifying financial instruments (or their components) in the consolidated statement
the Group has taken into account all terms and conditions reached between the Group
members and the holders of financial instruments. If the Group as a whole undertakes the
obligation to deliver cash other financial assets or settle accounts in other ways that cause the
instrument to become a financial liability due to the instrument the instrument shall be
classified as a financial liability.If financial instruments or their components are financial liabilities the Group will
include interest dividends (or dividends) gains or losses and gains or losses arising from
redemption or refinancing etc. in the current profits and losses.If financial instruments or their components are equity instruments when they are issued
(including refinancing) repurchased sold or cancelled the Group will treat them as changes
in equity and will not recognize changes in the fair value of equity instruments.
(7) Offset of financial assets and financial liabilities
The Group’s financial assets and liabilities shall be separately presented in the balance
sheet and not set off each other. However when the following conditions are met
simultaneously the net amount after mutual offset is presented in the balance sheet: (1) the
Group has the legal right to offset the recognized amount and such legal right is currently
enforceable; (2) the Group plans to settle them on a net basis or realize the financial assets
and settle the financial liabilities at the same time.
12. Notes receivable
For notes receivable the Group shall measure the provision for loss based on the specific
expected credit loss during the entire period of existence. According to the credit risk
characteristics thereof except those with separate evaluation of credit risk notes receivable
can be divided into different combinations:
Item Basis
Bank acceptance bills The Accepter shall be the bank with high credit level and low risks
Trade Acceptance Classified by credit risk of accepters (the same as accountsreceivable)
13. Accounts receivable
149Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
For account receivable and contract assets excluding significant financing composition
the Group shall measure the provision for loss according to the specific expected credit loss
amount within the entire period of existence.For account receivable contract assets and lease payment receivable including
significant financing composition the Group shall always measure the provision for loss
according to the specific expected credit loss amount within the period of existence.Except the account receivable and contract assets whose credit risks shall be separately
evaluated the Group shall divide them into different combinations based on the specific credit
risks:
Item Basis
Aging
Combination This portfolio is accounts receivable with aging as the credit risk feature.Related party The accounts receivable from the other entities within the consolidation
combination scope
14. Receivables financing
The Group’s accounts receivable financing is based on expected credit losses and
provision is made for depreciation reserves in accordance with the expected credit loss
measurement method for notes receivable.
15. Other receivables
The Group measures the provision for losses of other receivables as below: * for
financial assets with no significant increase in credit risk since initial recognition the Group
measures the provision for loss according to the amount of expected credit loss in the next 12
months; * for financial assets whose credit risk has increased significantly since initial
recognition the Group measures the provision for loss at an amount equivalent to the
expected credit loss of the financial instrument during the entire lifespan; * for purchased or
internally generated financial assets which have undergone credit impairment the Group
measures the provision for loss at an amount equivalent to the expected credit loss over the
entire lifespan. Except other receivables whose credit risks shall be separately evaluated the
Group shall divide them into different combinations based on the specific credit risk features:
Item Basis
Aging
Combination This portfolio is other receivables with aging as the credit risk feature.Low Risk This combination shall regard other receivables of extremely low risk
Combination (including the revolving fund the cash deposit and the guarantee deposit)as the credit risk feature.
150Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Item Basis
Related party
combination Other receivables from the other entities within the consolidation scope.
16. Long-term Receivables
By determining whether the credit risk of long-term account receivables increases
remarkably after the initial recognition the Group shall measure the impairment loss based on
the specific expected credit loss in the following 12 months or during the entire period of
existence. Except long-term account receivables whose credit risks shall be separately
evaluated the Group shall divide them into different combinations based on the specific credit
risk features:
Item Basis
Financing Lease Regarding the long-term receivables related to the financing lease as the
Combination credit risk characteristics.
17. Inventories
The Group's inventories mainly include raw materials products in process semi-finished
products Products on handand entrusted processing materials.The perpetual inventory system is adopted and inventories are valued at actual cost upon
acquisition; The actual cost of inventories that have undergone requisition and dispatch is
determined by weighted average method. Low-value consumables and packaging are
amortized through the one-off charge-off method.For merchandise inventories directly for sale such as finished goods goods in process
and materials for sale their net realizable values are determined at the estimated selling prices
of the inventories minus the estimated selling expenses and relevant taxes and surcharges;
The net realizable value of material inventory held for production purposes is determined by
subtracting the estimated costs to be incurred until completion estimated sales expenses and
related taxes from the estimated selling price of the finished products produced. For
inventories with large quantity and low unit price the provision for inventory depreciation is
made according to the inventory category; For inventories related to the product series
produced and sold in the same area with the same or similar end use or purpose and difficult
to be measured separately from other items the provision for inventory depreciation is made
on a consolidated basis.The net realizable value refers in the ordinary course of business to the account after
deducting the estimated cost of completion estimated sale expense and relevant taxes from
the estimated sale price of inventories. The net realizable value of inventories shall be fixed
on the basis of valid evidence as well as under consideration of purpose of inventories and the
151Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
effect of events after the balance sheet date.After withdrawing the depreciation reserves for inventories if the factors which cause
any write-down of the inventories have disappeared causing the net realizable value of
inventories is higher than its book value; the amount of write-down shall be reversed from the
original amount of depreciation reserve for inventories. The reversed amount shall be
included in the profits and losses of the current period.
18. Contract assets
(1) Confirmation methods and standards of contract assets
Contract assets refer to the right of the Group to receive consideration after transferring
goods to customers and this right depends on factors other than the passage of time. If the
Group sells two clearly distinguishable products to customers it has the right to receive
payment because one of the products has been delivered but the payment is also dependent
on the delivery of the other product the Group has the right to receive payment as a contract
assets.
(2) Determination method and accounting treatment method of expected credit loss
of contract assets
The method for determining the expected credit losses of contract assets involves
measuring the impairment losses of contract assets by referencing the method used for the
impairment loss measurement of receivables as previously described.The Group calculates the expected credit loss of contract assets on the balance sheet date.If the expected credit loss is greater than the book amount of the current provision for
impairment of contract assets the Group recognizes the difference as an impairment loss by
debiting “impairment loss on assets” and crediting “provision for impairment of contractassets”. If the expected credit loss is greater than the book value of the current contract asset
impairment provision the Group will recognize the difference as an impairment loss and debit
the "asset impairment loss". Credited "Contract asset impairment provision". On the contrary
the Group recognizes the difference as an impairment gain and keeps the opposite accounting
records.If the Group actually incurs credit loss and determines that the relevant contract assets
cannot be recovered and the write-off is approved the "provision for impairment of contract
assets" is debited and the "contract assets" is credited according to the approved write-off
amount. If the write-off amount is greater than the provision for losses that has been made the
difference is debited into "losses from asset impairment".
19. Assets Relating to Contract Costs
(1) The method of determining the amount of assets related to contract costs
152Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
The Group’s assets related to contract costs include contract performance costs and
contract acquisition costs.Contract performance cost refers to the cost incurred by the Group to perform a contract.If the contract performance cost does not fall within the scope of other accounting standards
for business enterprises and meets the following conditions at the same time it is recognized
as an asset under contract performance cost: this cost is directly related to a current or
expected contract including direct labor direct materials manufacturing expenses costs
clearly borne by the customer as well as other costs incurred only due to this contract; This
cost enriches the Group's future resources to meet its performance obligations; This cost is
expected to be recovered.Contract acquisition cost refers to the incremental cost incurred by the Group to obtain
the contract that are expected to be recovered. It is recognized as an asset under contract
acquisition cost; If the amortization period of the asset does not exceed one year the asset is
included in the current profit or loss when the amortization occurs. Incremental cost refers to
the cost (such as sales commission etc.) that the Group will not incur without obtaining the
contract. The Group's expenses incurred in obtaining the contract other than the expected
incremental cost that can be recovered (such as travel expenses incurred regardless of whether
the contract is obtained etc.) are included in the current profit and loss when they are
incurred but it is clearly borne by the customer except.
(2) Amortization of assets related to contract costs
The Group’s assets related to contract costs are amortized on the same basis as the
commodity revenue recognition related to the asset and included in the current profit and loss.
(3) Impairment of assets related to contract costs
When determining the impairment loss of assets related to contract costs the Group first
determines the impairment loss of other assets related to the contract recognized in
accordance with other relevant accounting standards for business enterprises; If its book value
is higher than the difference between the remaining consideration expected to be obtained by
the Group from the transfer of the goods related to the asset and the estimated cost to be
incurred for the transfer of the relevant goods the excess shall be provided for impairment
and recognized as asset impairment loss.If the depreciation factors of the previous period have changed and the aforementioned
difference is higher than the book value of the asset the original provision for asset
impairment shall be reversed and included in the current profit and loss but the book value of
the asset after the reversal shall not exceed Assuming no provision for impairment is made
the book value of the asset on the date of reversal.
153Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
20. Long-term Equity Investments
The Group's long-term equity investments mainly consist of investments in subsidiaries
and associates.The Group’s judgment on joint control is based on the fact that all participants or a
combination of participants collectively control the arrangement and that the policies of the
activities related to the arrangement shall be unanimously agreed by those participants who.The Group is generally considered to have a significant influence on the investee when it
owns directly or indirectly through a subsidiary above 20% but below 50% of the voting
rights of the investee. If the Group holds less than 20% of the voting rights of the investee it
also needs to judge whether the Group has a significant influence on the investee by taking
into account the facts and circumstances such as having representatives on the board of
directors or similar authority of the investee or participating in the process of formulating
financial and operating policies of the investee or having major transactions with the investee
or sending management personnel to the investee or providing key technical information to
the investee.If control over the investee is formed it is a subsidiary of the Group. For long-term
equity investment acquired through business combination under the same control the initial
investment cost of the long-term equity investments is recorded at the merger date based on
the acquisition of the merged party's share of the book value of the net assets of the ultimate
controller in the consolidated financial statement. If the book value of the net assets of the
merged party on the merger date is negative the cost of long-term equity investments is
determined as zero.If the equity of the investee under the same control is acquired in stages through multiple
transactions to eventually result in a business combination additional disclosures of the
treatment of long-term equity investments in the parent Group's financial statements shall be
made in the Reporting Period in which control is obtained. For example if the business
combination that is ultimately formed through multiple transactions to acquire the equity of
the investee under the same control belongs to a package deal the Group shall conduct
accounting treatment to treat each transaction as a single transaction to acquire control. If the
transaction is not a package deal the initial investment cost of the long-term equity
investment is based on the share of the book value of the net assets of the merged party in the
consolidated financial statements of the ultimate controller at the merger date. The difference
between the initial investment cost and the sum of the book value of the long-term equity
investment before the merger plus the book value of the new consideration paid for further
acquisition of shares at the merger date shall offset against capital reserve; and where capital
reserve is insufficient to be offset the retained earnings shall be adjusted.
154Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
For long-term equity investment acquired through business combination not under the
same control the initial investment cost shall be the consolidation cost.If the equity of the investee not under the same control is acquired in stages through
multiple transactions to eventually result in a business combination additional disclosures of
the cost treatment of long-term equity investments in the parent Group's financial statements
shall be made in the Reporting Period in which control is obtained. For example if the
business combination that is ultimately formed through multiple transactions to acquire the
equity of the investee not under the same control belongs to a package deal the Group shall
conduct accounting treatment to treat each transaction as a single transaction to acquire
control. If the transaction is not a package deal the sum of the book value of the equity
investment originally held plus the cost of the new investment shall be the initial investment
cost calculated in accordance with the cost method. If the equity held prior to the purchase
date is accounted by the equity method the relevant other comprehensive income accounted
by the original equity method shall not be adjusted. The same basis of accounting as that used
for the direct disposal of the related assets or liabilities by the investee is used for the disposal
of the investment. If the equity held before the purchase date is designated as the financial
assets measured at fair value through other comprehensive income the cumulative gains or
losses of the equity originally recognized in other comprehensive income shall be transferred
from other comprehensive income and recognized in retained earnings; For financial assets
measured at fair value through current profit or loss the gains or losses of the equity
originally included in the profit or loss from changes in fair value need not be transferred to
investment income. If the equity held prior to the purchase date is an investment for other
equity instruments the changes in fair value of the equity investment accumulated in other
comprehensive income before the purchase date shall be transferred to the retained earnings.Except above long-term equity investments obtained through business combinations
long-term equity investments obtained through cash payments are recognized as investment
costs based on the actual purchase price paid; For long-term equity investments acquired by
issuing equity securities the fair value of the issued equity securities is taken as the
investment cost; For long-term equity investments invested by investors the value agreed in
the investment contract or agreement shall be taken as the investment cost.The Group calculates its investments in subsidiaries through the cost method and its
investments in joint ventures and associate enterprises through the equity method.For long-term equity investments calculated by the cost method for subsequent
measurement the book value of the cost of long-term equity investments shall be increased
by the fair value of the cost amount paid for the additional investment and relevant transaction
costs incurred when the additional investment is made. Cash dividends or profits declared by
the investee are recognized as investment income for the current period in accordance with
155Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
the due amount.For the long-term equity investment whose subsequent measurement adopts the cost
method when the additional investment is made the book value of the long-term equity
investment cost is increased according to the fair value of the cost amount paid by the
additional investment and the relevant transaction expenses. In recognizing the share of net
profit or loss of an investee the fair value of the identifiable assets of the investee at the time
of investment acquisition is used as the basis for recognizing the net profit of the investee in
accordance with the Group's accounting policies and accounting periods with the offsetting
of the portion of gains and losses on internal transactions with associates and joint ventures
that are attributable to the investor based on the proportion of the investor's ownership interest
and the net profit of the investee is recognized after adjustments are made to the net profit of
the investee.For the long-term equity investment with equity method for subsequent measurement
the book value of the long-term equity investment will increase or decrease with the change
of the owner's equity of the invested entity. When confirming the share of the net profit and
loss of the investee the net profit and loss of the investee shall be calculated based on the fair
value of the identifiable assets of the investee at the time of obtaining the investment in
accordance with the accounting policies and accounting period of the Group and offset the
internal transaction profit and loss between the joint venture and the joint venture according to
the shareholding ratio Profit is recognized after adjustment.If common control or significant influence over an investee is lost due to the disposal of
a portion of the equity investment etc. the remaining equity interest after disposal is
reclassified to be accounted for in accordance with the relevant provisions of the guidelines
for the recognition and measurement of financial instruments and the difference between the
fair value of the remaining equity interest at the date of the loss of common control or
significant influence and its book value is recognized in current profit or loss. For long-term
equity investment accounted by equity method other comprehensive income accounted by the
original equity method shall be accounted on the same basis as the investee's direct disposal
of relevant assets or liabilities when the equity method is terminated and the owner's equity
shall be recognized due to other changes in owner's equity of the investee except net profit
and loss other comprehensive income and profit distribution When the equity method is
terminated all of them shall be transferred into the current investment income.In case that the control over the investee is lost due to the disposal of part of the long-
term equity investments if the remaining equity after disposal can exercise joint control or
significant influence on the investee the accounting method is changed to equity method. The
difference between the book value of the disposal equity and the disposal consideration shall
be included in the investment income and the remaining equity is adjusted as if it were
156Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
accounted for using the equity method from the time of acquisition; If the remaining equity
after disposal is insufficient for exercising joint control or significant influence on the
investee accounting treatment shall be made in accordance with the relevant provisions of the
recognition and measurement standards for financial instruments. The difference between the
book value of the disposed equity and the disposal consideration shall be included in the
investment income and the difference between the fair value and the book value of the
remaining equity on the date of loss of control is included in the current profit or loss.If the transaction from step-by-step disposal of equity to loss of control right does not
belong to package transaction accounting treatment shall be carried out for each transaction
separately. If it is a "package deal" each transaction will be treated as a transaction of
disposal of subsidiaries and loss of control. However before the loss of control the difference
between the disposal price of each transaction and the book value of the long-term equity
investment corresponding to the disposed equity will be recognized as other comprehensive
income and when the control is lost it will be transferred to the current account of loss of
control Period profit and loss.
21. Investment Property
The term “investment property” refers to the real estate held for generating rent and/or
capital appreciation. Investment property of the Group include the right to use any land which
has already been rented; the right to use any land which is held and prepared for transfer after
appreciation; and the right to use any building which has already been rented. In addition if
the board of directors (or similar organizations) makes a written resolution to use the vacant
buildings held by the Group for operating lease and the holding intention will not change in a
short time they will also be listed as investment real estate.The initial measurement of the investment property shall be made at its cost. For
subsequent expenses related to the investment property if the economic benefits related to the
asset are likely to flow in and the cost can be measured reliably they are included in the cost
of the investment property. Other subsequent expenses are included in the current profit or
loss when incurred.The Group shall make a follow-up measurement to the investment property by
employing the cost pattern on the date of the balance sheet. An accrual depreciation or
amortization shall be made for the investment property in the light of the accounting policies
of the use right of buildings or lands.For details of impairment test method and withdrawal method of impairment provision
of investment property please refer to Note IV. 27. “Long-term assets impairment”.The Group's investment real estate adopts the average life method for depreciation or
amortization. The expected service life net residual value rate and annual depreciation
157Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
(amortization) rate of all kinds of investment real estate shall refer to the depreciation policy
of buildings in fixed assets and the amortization policy of land use right in intangible assets.When owner-occupied real estate or inventories are changed into investment property or
investment property is changed into owner-occupied real estate of which book value prior to
the change shall be the entry value after the change.When an investment property is changed to an owner-occupied real estate it would be
transferred to fixed assets or intangible assets at the date of such change. When an owner-
occupied real estate is changed to be held to earn rental or for capital appreciation the fixed
asset or intangible asset is transferred to investment property at the date of such change. When
a property is converted to an investment property measured using the cost model the book
value before conversion is taken as the entry value after conversion; When a property is
converted into an investment property measured at fair value the fair value on the conversion
date is recognized as the entry value after conversion.An investment property is derecognized on disposal or when the investment property is
permanently withdrawn from use and no future economic benefits are expected from its
disposal. The amount of proceeds on sale transfer retirement or damage of an investment
property less its carrying amount and related taxes and expenses is recognized in profit or loss
in the period in which it is incurred.
22. Fixed Assets
The Group’s fixed assets are tangible assets held for the production of goods provision
of services rental or operation management and have a useful life of more than one year.Fixed assets should be recognized when it is probable that the economic benefits
associated with them will be incorporated into the Group and their cost can be measured
reliably. The Group’s fixed assets include buildings and constructions machinery and
equipment electronic equipment transportation equipment and other equipment.The Group depreciates all fixed assets by straight-line method except for fully
depreciated fixed assets that continue to be used and land that is separately valued. The
straight-line depreciation method (SLD) is adopted. The classified depreciation life estimated
net residual value rate and depreciation rate of the Group's fixed assets are as follows:
Expected net Annual
Depreciation
No. Type Depreciation salvage value deprecation
period (year)
period (year) (%) (%)
Housing and Straight-line
20-405-10.002.25-4.75
1 building depreciation
Machinery Straight-line
5-105-10.009.00-19.00
2 equipment depreciation
158Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Expected net Annual
Depreciation
No. Type Depreciation salvage value deprecation
period (year)
period (year) (%) (%)
Electronic Straight-line
3-55-10.0018.00-31.67
3 equipment depreciation
Transportation Straight-line
3-55-10.0018.00-31.67
4 vehicle depreciation
Other Straight-line
55-10.0018.00-19.00
5 equipment depreciation
The estimated useful life estimated net salvage value and depreciation method of fixed
assets are reviewed at the end of each year. Accounting estimation methods are used when
changes are required.
23. Construction in progress
The cost of construction in progress is determined based on actual project expenditures
including all necessary project expenditures incurred during construction borrowing costs to
be capitalized before the project reaches its predetermined usable state and other related
expenses etc.On the date when the construction in progress reaches its intended useable state fixed
assets are carried forward at the estimated value based on the project budget cost or actual
cost of the project etc. Depreciation starts from the following month and the difference in the
original value of fixed assets is adjusted after the completion of the final accounting
procedures.Construction in progress is transferred to fixed assets upon reaching the predetermined
usable state with the criteria as follows:
Item Criteria for carrying forward fixed assets
The main construction project and ancillary projects are substantially
completed meeting the predetermined design requirements. Upon
joint acceptance by the Company’s Engineering Department and units
Housing and
responsible for surveying design construction supervision etc. and
building
government departments such as the Fire Services Department and the
Housing Authority and reaching the predetermined usable state
following process approval it is transferred to fixed assets.The equipment management department and the equipment
Machinery manufacturer are jointly responsible for the installation and
equipment commissioning of the equipment including hardware debugging
process conditions debugging etc. Upon completion of debugging
159Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Item Criteria for carrying forward fixed assets
and reaching the predetermined usable state following process
approval it is transferred to fixed assets.
24. Borrowing Costs
The Group capitalizes borrowing costs directly attributable to the acquisition
construction or production of qualifying assets as part of the cost of those assets. Other
borrowing costs are recognized as expenses in the current period. The assets that meet the
capitalization conditions determined by the Group include the borrowing costs of fixed assets
investment real estate and inventories that need more than one year of acquisition and
construction or production activities to reach the expected serviceable or marketable status.Capitalization starts when asset expenditures have been incurred borrowing costs have been
incurred or necessary purchasing construction or production activities have begun to bring
the assets to their intended usable or marketable status; When the acquired and constructed or
produced assets that meet the capitalization conditions have reached the working condition for
their intended use or sale the capitalization is ceased and the borrowing costs incurred
thereafter is included in the current profit or loss. If there is an abnormal interruption in the
acquisition construction or production of assets that meet the capitalization conditions and
the interruption lasts for more than 3 consecutive months the capitalization of borrowing
costs will be suspended until the acquisition construction or production of assets starts again.During each accounting period within the capitalization process the Group recognizes
the capitalization amount of borrowing costs using the following method: for specialized
borrowings the capitalization amount is based on the actual interest expenses incurred in the
current period after deducting the interest income earned from unused borrowing funds
deposited in the bank or investment income earned from temporary investments; Where
general borrowings are used they shall be determined by multiplying the weighted average of
asset disbursements of the part of accumulated asset disbursements exceeding special
borrowings by the capitalization rate of used general borrowings and the capitalization rate is
calculated and determined according to the weighted average interest rate of the general
borrowings.
25. Right-of-use Assets
The right-of-use assets refer to the right of the Group as the lessee to use the leased
assets during the lease term.
(1) Initial measurement
After the commencement date of the lease term the Group uses the cost for initial
160Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
measurement of right-of-use assets. The cost includes the following four items: * initial
measurement amount of the lease liabilities; * lease payment amount paid on or before the
start date of the lease term. If there is any lease incentives the lease incentives that have been
enjoyed are deducted; * the initial direct costs incurred i.e. the incremental costs incurred in
obtaining the lease agreement; * the cost expected to be incurred for dismantling and
removing the leased assets restoring the site where the leased assets are located or restoring
the leased assets to the state agreed upon in the lease terms except for those incurred for the
production of inventory.
(2) Follow-up measurement
After the commencement date of the lease term the Group adopts the cost model to carry
out follow-up measurement of the right-of-use assets that is the right-of-use assets are
measured at cost less accumulated depreciation and accumulated impairment losses. If the
Group re-measures the lease liabilities according to the relevant provisions of the lease
standards the book value of the right-of-use assets shall be adjusted accordingly.
(3) Depreciation of right-of-use assets
From the commencement date of the lease term the Group has accrued depreciation on
the right-of-use assets. Right-of-use assets are usually depreciated from the month when the
lease term begins. The accrued depreciation amount is included in the cost of related assets or
current profits and losses according to the use of the right-of-use assets.When determining the depreciation method of the right-of-use assets the Group makes a
decision based on the expected consumption mode of the economic benefits related to the
right-of-use assets and accrues depreciation for the right-of-use assets on the straight-line
method.When determining the depreciation life of right-of-use assets the Group follows the
following principles: if it can be reasonably determined that the ownership of the leased assets
will be obtained at the expiration of the lease term the depreciation is accrued over the
remaining service life of the leased assets; If it can not be reasonably determined that the
ownership of the leased asset can be obtained at the expiration of the lease term the
depreciation is accrued over the shorter of the lease term or the remaining service life of the
leased asset.
(4) Impairment of right-of-use assets
If the right-of-use assets are impaired the Group carries out subsequent depreciation
according to the book value of the right-of-use assets after deducting the impairment loss.
26. Intangible Assets
Intangible assets of the Group include land use rights patented technologies non-
161Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
patented technologies etc. They are measured at the actual cost on acquisition. Specifically
for purchased intangible assets the actual price paid and other relevant expenses are taken as
the actual cost; For intangible assets invested by investors the value agreed in the investment
contract or agreement is taken as the actual cost. However if the value agreed in the contract
or agreement is not fair the actual cost is determined according to the fair value; For
intangible assets such as patents acquired from a merger not under the same control if they
were owned the acquired party but not recognized in its financial statements they shall be
recognized as intangible assets at fair value upon initial recognition of the acquired party's
assets.
(1) Service life and its determination basis estimation amortization method or
review procedure
Intangible assets of the Group include land use rights patented technologies non-
patented technologies etc. They are measured at the actual cost on acquisition. Specifically
for purchased intangible assets the actual price paid and other relevant expenses are taken as
the actual cost; For intangible assets invested by investors the value agreed in the investment
contract or agreement is taken as the actual cost. However if the value agreed in the contract
or agreement is not fair the actual cost is determined according to the fair value; For
intangible assets such as patents acquired from a merger not under the same control if they
were owned the acquired party but not recognized in its financial statements they shall be
recognized as intangible assets at fair value upon initial recognition of the acquired party's
assets.
(2) Scope of R&D expenditures and related accounting treatment
The scope of the Group's R&D expenditures includes salaries of R&D personnel direct
input costs depreciation and amortization design fees equipment testing fees fees for R&D
outsourced to external parties and other expenses.The Group classifies its internal research and development project expenditures into
expenditure on the research phase and expenditure on the development phase based on the
nature of the expenditures and the degree of uncertainty in whether the R&D activities will
result in an intangible asset. Expenditure on the research phase are recognized in profit or loss
when incurred. Expenditure on the development phase are capitalized when all of the
following conditions are met:
A) The Group has assessed the technical feasibility of completing the intangible asset so
that it will be available for use or sale.B) The Group intends to complete the intangible asset and use or sell it.C) It is probable that the intangible asset will generate future economic benefits.
162Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
D) The Group has the adequate technical financial and other resources to complete the
development and to use or sell the intangible asset.E) The expenditure attributable to the development phase of the intangible asset can be
measured reliably. Development phase expenditures not meeting these capitalization criteria
are recognized in profit or loss for the current period when incurred.
27. Impairment of Long-term Assets
For non-current non-financial Assets of fixed assets projects under construction
intangible assets with limited service life investing real estate with cost model long-term
equity investment of subsidiaries cooperative enterprises and joint ventures the Group
should judge whether decrease in value exists on the date of balance sheet. Recoverable
amounts should be tested for decrease in value if it exists. Goodwill intangible assets with
uncertain service life and other non-accessible intangible assets should be tested for
impairment at the end of each year regardless of whether there is any indication of
impairment.
(1) Impairment of non-current assets other than financial assets (except goodwill)
If the recoverable amount is less than book value in impairment test results the provision
for impairment of differences should include in impairment loss. Recoverable amounts would
be the higher of net value of asset fair value deducting disposal charges or present value of
predicted cash flow. The fair value of the assets is determined according to the sales
agreement price in fair transactions; If there is no sales agreement but there is an active
market for the asset the fair value is determined based on the buyer's offer for the asset; If
there is neither sales agreement nor an active market for the asset the fair value is estimated
based on the accessible optimum information. Disposal expenses include legal fees taxes
cartage or other direct expenses of merchantable Assets related to asset disposal. Present
value of predicted asset cash flow should be determined by the proper discount rate according
to Assets in service and predicted cash flow of final disposal. Asset depreciation reserves
should be calculated on the basis of single Assets. If it is difficult to predict the recoverable
amounts for single Assets recoverable amounts should be determined according to the
belonging asset group. Asset group is the minimum asset combination producing cash flow
independently.
28. Impairment of Goodwill
In impairment test book value of the business reputation in financial report should be
shared to beneficial asset group and asset group combination in collaboration of business
combinations. It is shown in the test that if recoverable amounts of shared business reputation
asset group or asset group combination are lower than book value it should determine the
impairment loss. Impairment loss amount should firstly be deducted and shared to the book
163Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
value of business reputation of asset group or asset group combination then deduct book
value of all assets according to proportions of other book value of above assets in asset group
or asset group combination except business reputation.The methodology parameters and assumptions for the goodwill impairment test are
detailed in Note VI. 19.After the asset impairment loss is determined recoverable value amounts would not be
returned in future.
29. Long-term Deferred Expenses
The Long-term deferred expenses of the Group including renovation cost mold cost and
so on shall be amortized evenly during the benefit period. If these long-term deferred
expenses cannot benefit the future accounting period the amortized value of this item that has
not been amortized shall be transferred to the current profit or loss.
30. Contract Liabilities
Liabilities of contracts refer to the Group's obligation to transfer goods to customers due
to the consideration received or receivable from customers. Before the transfers if the
customer has paid the consideration or if the Group has obtained the right to unconditionally
collect the contract consideration the liabilities of contracts shall be recognized based on the
amount received or receivable at the earlier point between the actual payment by the customer
and the payment due.
31. Employee Compensation
Salaries of staff of the Group include short-term salary post-employment benefits
termination compensation and other long-term benefits.Short-term salary mainly includes wages bonuses allowances and subsidies as well as
employee benefits medical insurance maternity insurance employment injury insurance
housing provident fund labor union expenses and staff education expenses and non-
monetary benefits. During the accounting period when the employees provide services the
actual short-term compensation is recognized as a liability that shall be included in the current
profit and loss or the cost of related assets according to the beneficiary.The post-employment benefits mainly include the basic endowment insurance etc. They
are divided into defined contribution plans and defined benefit plans in accordance with the
risks and obligations undertaken by the Group. According to the defined contribution plan
the deposit paid to a separate entity in exchange for the services provided by the employees
during the accounting period on the balance sheet date is recognized as liabilities and shall be
included in the current profit and loss or the cost of related assets according to the beneficiary.If the Group has a defined benefit plan the specific accounting method should be explained.
164Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
When terminating labour relations before expiration of contract or layoffs with
compensations and the Group cannot terminate the labour relations unilaterally or reduce the
dismissal welfare remuneration and liabilities produced from the dismissal welfare should be
determined and included in current profits and losses when determining the costs of dismissal
welfare and recombination. However dismissal welfare not fully paid within 12 months after
annual reporting period should be handled the same as other long-term employees’ payrolls.The inside employee retirement plan is treated by adopting the same principle with the
above dismiss ion welfare. The Group would recorded the salary and the social security
insurance fees paid and so on from the employee’s service termination date to normal
retirement date into current profits and losses (dismissal welfare) under the condition that they
meet the recognition conditions of estimated liabilities.The other long-term welfare that the Group offers to the staffs if met with the setting
drawing plan should be accounting disposed according to the setting drawing plan while the
rest should be disposed according to the setting revenue plan.
32. Lease liabilities
(1) Initial measurement
The Group initially measures the lease obligation at the present value of the lease
payments outstanding at the lease commencement date.
1) Lease payments
Lease payment amount refers to the amount paid by the Group to the lessor in relation to
the right to use the leased asset during the lease term including: * fixed payment amount
and substantially fixed payment amount with lease incentives (if any) deducted from the
relevant amount; * the amount of variable lease payments that depend on an index or ratio
which is determined at the time of initial measurement based on the index or ratio at the
commencement date of the lease term; * the exercise price of the call option when the Group
reasonably determines that the call option will be exercised; * the amount needs to be paid
for exercising the lease termination option when the lease term reflects that the Group will
exercise the option to terminate the lease; * the amount expected to be paid according to the
residual value of the guarantee provided by the Group.
2) Rate of discount
When calculating the present value of the lease payments the Group uses the interest
rate implicit in lease as the rate of discount which is the interest rate at which the sum of the
present value of the lessor's lease receipts and the present value of the unsecured residual
value equals the sum of the fair value of the leased asset and the lessor's initial direct expenses.If the Group fails to determine the interest rate implicit in lease the incremental interest rate
165Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
on borrowing will be used as the rate of discount. The incremental interest rate on borrowing
shall mean the interest rate payable by the Group to borrow funds under similar mortgage
conditions during similar periods to acquire assets close to the value of the right-of-use assets
under similar economic circumstances. The interest rate is related to the following matters:*
the Group's own situation that is the company's solvency and credit status; * the term of the
"borrowings" i.e. the lease term; * the amount of "borrowed" funds i.e. the amount of the
lease liability; * "collateral conditions" i.e. the nature and quality of the subject assets; *
economic circumstances including the jurisdiction in which the lessee is located pricing
currency time of contract signing etc. The incremental borrowing rate is based on the
Group's latest asset-based lending interest rate for similar assets and adjusted to take into
account the above factors.
(2) Follow-up measurement
After the lease commencement date the Group measures the lease liability in accordance
with the following principles: * when recognizing the interest on the lease liability the
carrying amount of the lease liability is increased; * when the lease payment is made the
book amount of the lease liability is reduced; * when the lease payment changes due to
revaluation or lease change the book value of the lease liability is re-measured.The Group calculates the interest expenses of the lease obligations during each period of
the lease term at a fixed periodic interest rate and includes them (except those that shall be
capitalized) in profit or loss for the current period. Periodic rate refers to the rate of discount
adopted by the Group when initially measuring lease liabilities or the revised rate of discount
adopted by the Group when lease liabilities need to be remeasured according to the revised
rate of discount due to changes in lease payments or lease changes.
(3) Re-measurement
After the lease commencement date the Group re-measures the lease liability based on
the present value of the changed lease payment and adjusts the book value of the right-of-use
assets accordingly when the following circumstances occur. If the book value of the right-of-
use assets has been reduced to zero but the lease obligations still need to be further reduced
the Group will include the remaining amount in profit or loss for the current period. * there
have been changes in substantially fixed payments (in which case the original discount rate is
adopted); * there have been changes in the estimated payable amount of the guarantee
residual value (in which case the original discount rate is adopted); * there have been
changes in the index or ratio used to determine the lease payments (in which case the revised
discount rate is adopted);* there have been changes in the valuation results of the call option
(in which case the revised discount rate is adopted); * there have been changes in the
evaluation results or actual exercise of the option to renew or terminate the lease (in which
166Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
case the revised discount rate is adopted).
33. Provisions
When an obligation related to a contingency meets the following conditions
simultaneously it is recognized as an estimated liability: (1) the obligation is a present
obligation undertaken by the Group; (2) the performance of the obligation is likely to result in
an outflow of economic benefits; (3) the amount of the obligation can be reliably measured.The projected liabilities are initially measured in accordance with the optimal estimate of
the necessary expenses for the fulfillment of the current obligation with the risks related to
contingent matters uncertainty the time value of money and other factors taken into
consideration. The Group reviews the current best estimate of the provisions for contingent
liabilities at the balance sheet date and adjusts the carrying amount of the provision as
necessary.When all or some of the expenses necessary for the liquidation of an provisions of an
enterprise is expected to be compensated by a third party the compensation should be
separately recognized as an asset only when it is virtually certain that the reimbursement will
be obtained. Besides the amount recognized for the reimbursement should not exceed the
book value of the estimated liabilities.
34. Principles of Revenue Recognition and Measurement Method
(1) General principles
The Group has fulfilled the performance obligations in the contract that is when the
customer obtains control of the relevant goods or services revenue is recognized. Obtaining
control over related goods or services means being able to lead the use of the goods or the
provision of such services and obtain almost all of the economic benefits from it.Performance obligation refers to the Group's commitment in a contract to transfer clearly
distinguishable goods to the customer. A performance obligation of the Group is deemed as
an obligation to be fulfilled within a certain period of time if one of the following conditions
is met; otherwise it is the performance of performance obligations at a certain point in time:
* The customer obtains and consumes the economic benefits brought by the Group's
performance at the same time as the Group's performance;
* the customer is capable of controlling the goods under construction during the
performance of the Group;
* the goods produced during the performance of the Group have irreplaceable uses and
the Group is entitled to collect payments for the cumulative performance of the contract
during the entire contract period.
167Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
For performance obligations performed within a certain period of time the Group
recognizes revenue according to the performance progress during that period. When the
performance progress cannot be reasonably determined if the cost incurred by the Group is
expected to be compensated the revenue shall be recognized according to the amount of the
cost incurred until the performance progress can be reasonably determined.For performance obligations performed at a certain point in time the Group recognizes
revenue at the point in time when the customer obtains control of the relevant goods or
services. When judging whether the customer has obtained right of control of the goods the
Group considers the following signs:
* The Group has the current right to receive payment for the goods which means the
customer has current payment obligations for the goods;
* the Group has transferred the legal ownership of the goods to the customer that is the
customer already has legal ownership of the goods;
* the Group has physically transferred the goods to the customer that is the customer
has physically taken possession of the goods;
* the Group has transferred the significant risks and rewards pertaining to the
ownership of the goods to the customer that is the customer has obtained the significant risks
and rewards;
* The customer has accepted the goods or services etc.;
* other signs indicating that the customer has gained control of the goods.The Group's right to receive consideration for transfer of goods or services to customers
is presented as a contract asset. The provision for impairment of contract assets is made based
on expected credit loss. The Group's right to receive consideration from a customer
unconditionally is presented as accounts receivable. The Group's obligation to transfer goods
or services to customers for the consideration received or receivable from customers is
presented as a contract liability.
(2) Revenue measurement principle
1) If the contract contains two or more performance obligations at the commencement
date of the contract the Group will allocate the transaction price to each single performance
obligation based on the relative proportion of the stand-alone selling price of the goods or
services promised under each single performance obligation. Revenue is measured at the
transaction price of each single performance obligation.
2) The transaction prices refers to the amount of consideration that the Company expects
to be entitled to receive for transferring goods or services to customers excluding amounts
168Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
collected on behalf of third parties and amounts expected to be returned to customers. The
transaction price shall not exceed the amount that is highly unlikely to result in a significant
reversal of the cumulative recognized income at the time of the elimination of relevant
uncertainties. Amounts expected to be returned to customers are not included in the
transaction price as a liability.
3) If there is variable consideration in a contract such as cash discount and price
guarantee in the contract between the Group and the customer the Group determines the best
estimate of the variable consideration according to the expected value or the most likely
amount but the transaction price including the variable consideration shall not exceed the
amount of the accumulated recognized income that is very unlikely to be significantly
reversed when the relevant uncertainty is eliminated.
4) For the consideration payable to the customer the Group offsets the transaction price
against the consideration payable to the customer and offsets the current income at the later
of the recognition of the relevant income and the payment of (or commitment to pay) the
customer's consideration unless the consideration payable is for the purpose of obtaining
other clearly distinguishable goods from the customer.
5) For sales with sales return clauses when the customer obtains control of the relevant
goods the Group recognizes the revenue at the amount of consideration expected to be
received due to the transfer of goods to the customer and recognizes the amount expected to
be refunded due to sales return as estimated liabilities; In addition the balance of the expected
book value of the returned goods at the time of transfer less the expected cost of recovering
the goods (including the impairment of the value of the returned goods) is recognized as an
asset i.e. the return cost receivable. The net amount of the above asset cost is carried forward
according to the book value of the transferred goods at the time of assignment. On each
balance sheet date the Group re-estimates the future sales returns and re-measures the
aforementioned assets and liabilities.
6) If there is a significant financing component in the contract the Group determines the
transaction price according to the amount payable in cash when the customer obtains the
control of the goods or services. The difference between the determined transaction price and
the amount of consideration promised in the contract is amortized over the contract period
through the effective interest method using the discount rate that discounts the nominal
amount of the contract consideration to the current selling price of the goods. On the starting
date of the contract the Group expects that the time between the customer's acquisition of
control of the goods or services and the customer's payment of the price will not exceed one
year regardless of the significant financing components in the contract.
7) According to contractual agreements legal provisions etc. the Group provides
169Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
quality assurance for the products sold and the assets built. For guarantee-type quality
assurance to assure customers that the goods sold meet the established standards the Group
conducts accounting treatment in accordance with "contingent events-estimated liabilities".For the service quality assurance that provides a separate service in order to assure customers
that the goods sold meet the established standards the Group regards it as a single
performance obligation based on the stand-alone selling price of the quality assurance of
goods and services. For service-type quality assurance where a separate service is provided in
addition to the assurance to the customer that the goods sold meet the established standards
the Group treats it as a single performance obligation and apportions a portion of the
transaction price to the service-type quality assurance based on the relative proportions of the
separate selling prices of the goods and the service-type quality assurance provided and
recognizes revenue when the customer obtains control of the service. When assessing whether
the quality assurance provides a separate service in addition to ensuring that the products sold
meet the established standards the Group considers whether the quality assurance is a legal
requirement the quality assurance period and the nature of the Group's commitment to
perform the tasks.
8) When a contract change occurs in the construction contract between the Group and the
customer: * If the contract change increases clearly distinguishable construction services and
the contract price and the increase of contract price reflects the individual selling price of the
increased construction service the Group will treat the contract change as a separate contract
for accounting treatment; * If the contract change does not fall under the above-mentioned
circumstance * and the construction services transferred on the date of contract change can
be clearly distinguished from the construction services not transferred the Group will regard
the original contract as terminated and at the same time the unperformed part of the original
contract and the contract change will be merged into a new contract for accounting treatment;
* If the contract change does not fall under the above-mentioned circumstance * and the
construction services transferred on the date of contract change cannot be clearly
distinguished from the construction services not transferred the Group will treat the contract
change as an integral part of the original contract for accounting treatment and the resulting
impact on the recognized income will be adjusted to the current income on the date of
contract change.
(3) Specific method
The revenue of the Group mainly consists of the income from main business and the
income from other businesses.* Revenue recognized on time
The Group's sales of household appliances electronic components etc. belong to the
170Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
performance obligation performed at a certain point in time.Recognition conditions for income from domestic sales of goods and overseas direct
sales of goods: The Group has delivered the product to the customer in accordance with the
contract and the customer has received the product the payment has been recovered or the
receipt of payment has been obtained and the relevant economic benefits are likely to flow in.The main risks and rewards have been transferred and the legal ownership of the goods has
been transferred.Conditions for confirming the income of exported goods: The Group has declared the
products for export according to the contract obtained the bill of lading and delivered the
goods to the carrier entrusted by the purchaser. The payment has been recovered or the receipt
of payment has been obtained and relevant economic benefits are likely to flow in. The main
risks and rewards of commodity ownership have been transferred and the legal ownership of
commodities has been transferred.* Income confirmed according to the performance progress
The Group's business contracts with customers for project construction operating leases
etc. are performance obligations performed within a certain period of time and revenue is
recognized according to the progress of the performance.
35. Government Grants
The government grants of the Group are divided into asset-based government grants and
income-based government grants. Specifically asset-based government grants refer to the
government grants obtained by the Group for the purpose of purchasing constructing or
otherwise forming long-term assets; Income-based government grants refer to those other
than asset-based government grants. If the beneficiaries are not specified in government
documents the Group will make the distinction according to the aforesaid principle.Beneficiaries which are difficult to categorize shall be classified as income-based government
grants as a whole.If the government subsidies are monetary assets they shall be measured at the amount
actually received. For a subsidy allocated according to a fixed quota standard or when there
is conclusive evidence at the end of the year that the relevant conditions stipulated in the
financial support policies can be met and the financial support funds are expected to be
received the subsidy shall be measured according to the amount receivable; If the
government grants are non-monetary assets they are measured at fair value. Where the fair
value cannot be reliably obtained the grant is measured at a nominal amount (RMB1).Asset-based grants shall be used to offset the book value of related assets or presented as
deferred income and shall over the life of the related asset be included in the current profits
171Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
and losses by the equal amortization method.If the related asset is sold transferred scrapped or damaged before the end of its useful
life its deferred income that has not been distributed shall be transferred to the current profit
and loss of asset disposal.Income-based grants that are used to compensate related costs or losses in subsequent
periods shall be deemed as deferred income and shall be included in the current profits and
losses during the period when the related costs or losses are recognized. Government grants
related to routine activities shall be included in other income in accordance with the nature of
the transaction. Government grants not related to routine activities shall be included in non-
operating revenue and expenditure.The Group obtains interest grants on policy-related concessional loans in two different
ways: the interest subsidy funds are allocated by the government either to the lending bank or
directly to the Group. The respective accounting treatment is carried out as follows:
(1) Where the government allocates the funds to the lending bank and the bank provides
a loan to the Group at a policy-related preferential interest rate the actual amount of the loan
received is taken as the entry value and the borrowing costs are calculated based on the loan
principal and the policy-related preferential interest rate.
(2) Where the government allocates the funds directly to the Group the grants are offset
against borrowing costs.Where the government grants that the Group has recognized in accounting need to be
returned the accounting treatment in the current period is carried out as follows:
1) If the book value of an asset is offset on initial recognition the book value will be
adjusted;
2) If there is deferred income the book balance of the deferred income will be offset and
the excess will be included in profit or loss in the current period;
3) Under any other circumstances the grants will be included in profit or loss in the
current period.
36. Deferred Tax Assets/Deferred Tax Liabilities
The Group's deferred tax assets and deferred tax liabilities are calculated and recognized
based on the difference (temporary difference) between the tax base and book value of the
assets and liabilities. In the case of deductible losses that can be deducted from taxable
income in subsequent years in accordance with the provisions of the tax laws the
corresponding deferred tax assets are recognized. In the case of temporary differences arising
from the initial recognition of goodwill the corresponding deferred income tax liabilities are
172Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
not recognized. With respect to temporary differences arising from the initial recognition of
an asset or liability in a transaction which isn’t a business combination and which affects
neither accounting profit nor taxable income (or deductible losses) the corresponding
deferred tax assets and deferred tax liabilities are not recognized. On the balance sheet date
the deferred tax assets and deferred tax liabilities are measured at the tax rate applicable to the
period during which the assets are expected to be recovered or the liabilities are expected to
be settled.The Group recognizes deferred tax assets to the extent of the taxable income which it is
most likely to obtain and which can be deducted from deductible temporary differences
deductible losses and tax credits.
37. Leasing
(1) Identification of leases
The term "lease" refers to a contract whereby the lessor transfers the right of use
regarding the leased asset(s) to the lessee within a specified time in exchange for
consideration. On the commencement date of the contract the Group assesses whether the
contract is a lease or contains a lease. If a party to the contract transfers the right allowing the
control over the use of one or more assets that have been identified within a certain period in
exchange for a consideration such contract is a lease or includes a lease. In order to determine
whether a party to the contract transfers the right allowing the control over the use of the
identified assets for a certain period of time the Group assesses whether the customers in the
contract are entitled to obtain almost all the economic benefits arising from the use of the
identified assets during the use period and have the right to dominate the use of the identified
assets during the use period.If a contract contains multiple single leases at the same time the Group will split the
contract and conduct accounting treatment of each single lease respectively. If a contract
contains both lease and non-lease parts at the same time the Group will split the lease and
non-lease parts for accounting treatment.
(2) The Group as the lessee
1) Lease recognition
On the lease commencement date the Group recognizes the right-of-use assets and lease
obligations in respect of the lease. For the recognition and measurement of right-of-use assets
and lease liabilities please refer to Note IV "25. Right-of-use Assets" and "32. Lease
Liabilities".
2) Lease change
A lease change refers to a change in the scope consideration and term of lease outside
173Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
the original contract clauses including the addition or termination of the one or several rights
to use lease assets and the extension or reduction of the lease term specified in the contract.The effective date of lease change refers to the date when both parties reach an agreement on
lease change.If there is any change in the lease and the following conditions are met at the same time
the Group shall account for the lease change as a separate lease: * the lease change expands
the lease scope or extends the lease term by adding the right to use one or more leased assets;
* the increased consideration is equivalent to the amount of the separate price of the
expanded part of the lease scope or the extended part of the lease term adjusted according to
the contract situation.If the lease change is not accounted for as a separate lease on the effective date of the
lease change the Group amortizes the consideration of the contract after the change in
accordance with the relevant provisions of the lease standards and re-determine the lease term
after the change; The revised discount rate is used to discount the changed lease payment to
remeasure the lease liabilities. When calculating the present value of the lease payment after
the change the Group uses the interest rate implicit in the lease for the remaining lease period
as the discount rate; Where the interest rate implicit in the lease for the remaining lease term
cannot be determined the Group adopts the lessee's incremental borrowing rate on the
effective date of the lease change as the discount rate. If the interest rate implicit in lease
cannot be determined the Group adopts the incremental borrowing rate of the lessee on the
effective date of the lease change as the rate of discount. With regard to the impact of the
above-mentioned lease liability adjustment the Group conducts accounting treatment
according to the following situations: * The lessee will correspondingly reduce the book
value of the right-of-use assets and include the profit or loss of the lease terminated in part or
whole in the current profit or loss if the lease change narrows the scope of lease or shortens
the lease term. * The lessee will correspondingly adjust the book value of the right-of-use
assets if other lease changes result in the re-measurement of the lease obligation.
3) Short-term and low-value asset leases
For short-term leases with a lease term not exceeding 12 months and low-value asset
leases with lower value when single leased assets are brand new assets the Group chooses not
to recognize right-of-use assets and lease liabilities. The Group includes the payments of
short-term and low-value asset leases incurred during each period of the lease term in the
profit or loss for the current period or the cost of relevant assets by the straight-line method.
(3) The Group as the lessor
On the basis that (1) the contract assessed is a lease or includes a lease the Group as the
lessor classifies leases into finance leases and operating leases on the lease commencement
174Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
date.If a lease substantially transfers virtually all risks and rewards associated with ownership
of the leased asset the lessor classifies the lease as a finance lease and leases other than
finance leases as operating leases.If a lease falls in one or more of the following circumstances the Group usually
classifies it as a finance lease: * the ownership of the leased asset will be transferred to the
lessee at the expiration of the lease term; * the lessee has the option to purchase the leased
asset and the purchase price is low enough compared with the fair value of the leased asset
when the option is expected to be exercised so it can be reasonably determined that the lessee
will exercise the option on the lease commencement date; * although the ownership of the
asset will not be transferred the lease term covers most of the service life of the leased asset;
* on the lease commencement date the current value of the lease receipts is almost equal to
the fair value of the leased assets; * the leased asset can only be used by the lessee if no
major modification is made due to its special nature. If a lease has one or more of the
following signs the Group may also classify it as a finance lease: * If the lessee cancels the
lease the losses caused to the lessor by the cancellation of the lease are to be borne by the
lessee;* gains or losses arising from fluctuations in the fair value of the residual value of the
asset are attributable to the lessee;* the lessee has the ability to continue the lease to the next
period at a rent far below the market level.
1) Accounting treatment of finance leases
Initial measurement
On the commencement date of the lease term the Group recognizes the finance lease
receivables for the finance lease and derecognizes the leased asset of the finance lease. It
recognizes the net investment in the lease as the entry value of the finance lease when
initially measuring the finance lease receivable.The net investment in the lease is the sum of the net value of the unguaranteed residual
value and the lease receivable not received on the commencement date of the lease term at the
interest rate implicit in lease. Lease receipts refer to the amount that the lessee shall collect
from the lessee due to the transfer of the right to use the leased asset during the lease term
including: * fixed payments and substantially fixed payments to be paid by the lessee; If
there are lease incentives the relevant amount of lease incentives shall be deducted; * the
amount of variable lease payments dependent on an index or ratio. This amount is determined
at the time of initial measurement based on the index or ratio at the commencement date of
the lease term; * the exercise price of the call option provided that it can be reasonably
determined that the lessee will exercise the option; * the amount to be paid by the lessee for
exercising the option to terminate the lease provided that the lease term reflects that the
175Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
lessee will exercise of the option to terminate the lease; * the residual value of the guarantee
provided by the lessee the party related to the lessee or an independent third party
economically capable of fulfilling the guarantee obligation to the lessor.Follow-up measurement
The Group calculates and confirms the interest income at a fixed periodic rate in each
period in the lease term. Periodic rate refers to the rate of discount implicit in lease adopted to
determine the net investment in the lease (in the case of sublease if the interest rate implicit in
lease of sublease cannot be determined the rate of discount implicit in original lease is
adopted (adjusted according to the initial direct expenses related to sublease)) or the revised
rate of discount determined in accordance with the relevant provisions where the change of
the finance lease is not accounted for as a separate lease and meets the condition that the lease
will be classified as a finance lease if the change became effective on the lease
commencement date.Accounting treatment of lease change
If there is a change in a finance lease and the following conditions are met at the same
time the Group shall account for the change as a separate lease: * the change expands the
scope of the lease by adding the right to use one or more leased assets; * The increased
consideration is equivalent to the amount of the separate price of the expanded part of the
lease scope adjusted according to the contract situation.If the change of finance lease is not accounted for as a separate lease and the condition
that the lease will be classified as an operating lease if the change takes effect on the lease
commencement date is met the Group will account for it as a new lease from the effective
date of the lease change and take the net lease investment before the effective date of the
lease change as the book value of the leased asset.
2) Accounting treatment of operating leases
Treatment of rent
The Group recognizes lease receipts from operating leases as rental income on a straight-
line basis during each period of the lease term.Incentives provided
If the Group provides a rent-free period it allocates the total rentals over the entire lease
term without deducting the rent-free period by the straight-line method and also recognizes
rental income during the rent-free period. If certain expenses of the lessee are borne the
Group allocates the balance of rental income over the lease term after such expenses are
deducted from the gross rental income.
176Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Initial direct expenses
Initial direct expenses incurred by the Group in connection with operating leases shall be
capitalized to the cost of the leased underlying asset and recorded in the profits and losses of
the current period in stages over the lease term on the same basis of recognition as rental
income.Depreciation
For fixed assets in assets under operating lease the Group adopts the depreciation policy
for similar assets to accrue depreciation; For other assets under operating lease a systematic
and reasonable method is adopted for amortization.Variable lease payments
Variable lease payments made by the Group in relation to operating leases that are not
included in the lease receivable are included in the current profit or loss when they are
actually incurred.Change of operating leases
If an operating lease changes the Group will regard it as a new lease for accounting
treatment from the effective date of the change. The advance receipt or the lease receivable
related to the lease prior to the change is recognized as the payment receivable of the new
lease.
38. Measured at Fair Value
The Group measures equity instrument investments at fair value on each balance sheet
date. Fair value refers to the price that can be received from selling an asset or paid to transfer
a liability in an orderly transaction between market participants on the measurement date.For assets and liabilities measured or disclosed at fair value in the financial statements
the fair value level to which they belong is determined according to the lowest level input that
is significant to the fair value measurement as a whole: Level 1 inputs refer to unadjusted
quoted prices in the active market for the same assets or liabilities that can be obtained on the
measurement date; Level 2 inputs refer to inputs other than Level 1 inputs that are directly or
indirectly observable for the relevant assets or liabilities; Level 3 inputs are the unobservable
inputs of related assets and liabilities.On each balance sheet date the Group re-evaluates the assets and liabilities continuously
measured at fair value recognized in the financial statements to determine whether there is a
conversion between the levels of fair value measurement.
39. Changes in Main Accounting Policies and Estimates
(1) Changes of accounting policies
177Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
1) October 25 2023 the Ministry of Finance issued the Interpretation of the Accounting
Standards for Business Enterprises No.17 (hereinafter referred to as the "Interpretation No.
17") of which the contents of "Division of Current Liabilities and Non-current Liabilities"
"Disclosure of Supplier Finance Arrangement" and "Accounting Treatment of Post-sales
Leaseback Transactions" will come into force from January 1 2024. According to the
relevant requirements the Group has made corresponding changes to the accounting policies.The changes in accounting policies have no significant impact on the Group's total assets
total liabilities net assets net profits and other financial indicators.
2) On December 6 2024 the Ministry of Finance issued the Interpretation of the
Accounting Standards for Business Enterprises No.18 stipulating that the estimated liabilities
arising from guarantee-type quality assurance that does not belong to single performance
obligation shall be included in "primary business costs" and "other business costs" according
to the determined amount and shall no longer be included in "selling expenses". According to
the above accounting interpretation the Group has made corresponding changes to the
original accounting policies and retroactively adjusted the "cost of sales" "selling expenses"
and other statement items. The Company started to implement these principles from January 1
2024.
In accordance with the relevant provisions of Interpretation No.18 the names and
amounts of the significantly affected statement items are set forth below:
Year 2023
Item affected Adjustment
Before Restated
amount
Income statement
items:
Cost of sales 17149036750.50 180054701.97 17329091452.47
Selling expense 1145124848.96 -180054701.97 965070146.99
(2) Changes in Accounting Estimates
No such cases in the current year for the Group.V. Taxation
1. Main Taxes and Tax Rate
Specific situation of the taxes
Category of taxes Basis
rate
Calculated the output tax at the tax
VAT rate and paid the VAT by the 1%3%5%6%9% and 13%
amount after deducting the
178Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Specific situation of the taxes
Category of taxes Basis
rate
deductible withholding VAT at
current period of which the VAT
applicable to easy collection won’t
belong to the deductible withholding
VAT.Urban maintenance and 5% and 7% /See 2. Tax
The circulating tax actually paid
construction tax preferences for details
3% /See 2. Tax preferences for
Education surcharge The circulating tax actually paid
details
2% /See 2. Tax preferences for
Local education surcharge The circulating tax actually paid
details
25%/ See 2. Tax Preference for
Enterprise income tax Taxable income
details
The main taxpayers of different corporate income tax rates are explained as follows:
Name of entity Income tax rate
Electronic Technology Anhui Konka Anhui
Tongchuang Shaanxi Konka XingDa Hongye
Xinfeng Microcrystalline Boluo Konka 15%
Precision Xiaojia Technology Jiangsu Konka
Smart Chengdu Konka Electronics
Hong Kong Konka Hongdin Trading Jiali
International Hongjet Jiaxin Technology
Hongdin Invest Konka Mobility Kowin 16.5%
Memory (Hong Kong) and Chain Kingdom
Memory Technologies
Konka Europe 15%
Kanghao Technology 22.5%
Konka North America 21%
The parent company and other subsidiaries 25%
Remarks: According to the Temporary Provisions of Income Tax of Trans-boundary Tax
Payment Enterprises by State Taxation Administration resident enterprises without business
179Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
establishment or places of legal persons should be tax payment enterprises with theadministrative measures of income tax of “unified computing level-to-level administrationlocal prepayment liquidation summary and finance transfer”. It came into force from January
1 2008. According to the above methods the Company’s sales branch companies in each
area will hand in the corporate income taxes in advance from January 1 2008 and will be
final settled uniformly by the Company at the year-end.
2. Tax Preference and Approved Documents
(1) According to the announcement of the State Taxation Administration No. 12 of 2023:
small low-profit enterprises shall reduce the taxable income amount by 25% and pay the
corporate income tax at the tax rate of 20% which shall be continued until 31 December 2027.Resource tax (excluding water resource tax) urban maintenance and construction tax
property tax urban land use tax stamp duty (excluding stamp duty on securities transactions)
farm land occupation tax education surcharge and local education surcharge shall be levied
by half on small-scale VAT taxpayers small low-profit enterprises and individually-owned
businesses from January 1 2023 to December 31 2027. A number of the Company’s
subsidiaries of the Company were eligible for the aforementioned preferential tax policy
during the reporting period. specifically Chengdu Anren Konka Entrepreneurship Services
Yibin Konka Incubator Anhui Kangka Low Carbon Yibin Smart Anlu Kangka Konka Soft
Electronic Shengxing Industry Zhitong Technology Nantong Kangdian Digital Technology
Shanghai Kangjia Guizhou Kangjia New Material Shenzhen Nianhua Guizhou Konka New
Energy Shanxi Zhijia Ji’an Kangka Kangka Ronghe Jiangkang (Shanghai) Technology
Kangka Smart Manufacturing Xi’an Kangka Intelligence Chongqing Kangyiyun Zhejiang
Konka Electronic Zhejiang Konka Technology Industry Konka Unifortune and Kangka
North China.
(2) On 18 October 2022 Anhui Konka a subsidiary of the Company obtained the
Certificate of High-Tech Enterprise jointly issued by the Department of Science and
Technology of Anhui Province the Department of Finance of Anhui Province and Anhui
Provincial Tax Service of State Taxation Administration with the certificate number
GR202234002272 which is valid for three years. According to relevant tax regulations
Anhui Konka enjoys relevant preferential tax policies for high-tech enterprises for three
consecutive years from 2022 to 2024 and pays enterprise income tax at a preferential tax rate
of 15%.
(3) On 4 November 2022 Xinfeng Microcrystalline a subsidiary of the Company
obtained the Certificate of High-Tech Enterprise jointly issued by the Department of Science
and Technology of Jiangxi Province the Department of Finance of Jiangxi Province and the
Jiangxi Provincial Tax Service of State Taxation Administration with the certificate number
GR202236000999 which is valid for three years. According to the relevant tax regulations
Xinfeng Microcrystalline enjoys relevant preferential tax policies for high-tech enterprises for
three consecutive years from 2022 to 2024 and pays enterprise income tax at a preferential tax
rate of 15%.
(4) On 18 October 2022 Anhui Tongchuang a subsidiary of the Company obtained the
180Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Certificate of High-Tech Enterprise jointly issued by the Department of Science and
Technology of Anhui Province the Department of Finance of Anhui Province and Anhui
Provincial Tax Service of State Taxation Administration with the certificate number
GR202234000798 which is valid for three years. According to relevant tax regulations
Anhui Tongchuang enjoys relevant preferential tax policies for high-tech enterprises for three
consecutive years from 2022 to 2024 and pays enterprise income tax at a preferential tax rate
of 15%.
(5) On December 22 2022 Boluo Konka Precision a subsidiary of the Company
obtained the Certificate of High-Tech Enterprise jointly issued by Department of Science and
Technology of Guangdong Province Department of Finance of Guangdong Province and
Guangdong Provincial Tax Service of State Taxation Administration with the certificate
number GR202244017658 which will be valid for three years. According to relevant tax
regulations Boluo Konka Precision enjoys relevant preferential tax policies for high-tech
enterprises for three consecutive years from 2022 to 2024 and pays enterprise income tax at a
preferential tax rate of 15%.
(6) On 19 December 2022 Electronic Technology a subsidiary of the Company
received the Certificate of High-Tech Enterprise jointly issued by Shenzhen Science and
Technology Innovation Committee Shenzhen Finance Bureau and Shenzhen Tax Service of
State Taxation Administration with the certificate number GR202244205867 which is valid
for three years. According to relevant tax regulations Electronic Technology enjoys relevant
preferential tax policies for high-tech enterprises for three consecutive years from 2022 to
2024 and pays enterprise income tax at a preferential tax rate of 15%.
(7) On November 19 2024 Xingda Hongye a subsidiary of the Company obtained the
Certificate of High-Tech Enterprise jointly issued by Department of Science and Technology
of Guangdong Province Department of Finance of Guangdong Province and Guangdong
Provincial Tax Service of State Taxation Administration with the certificate number
GR202444002600 which will be valid for three years. According to relevant tax regulations
Xingda Hongye is entitled to relevant preferential tax policies for high-tech enterprises for
three consecutive years from 2024 to 2026 and pays enterprise income tax at a preferential
tax rate of 15%.
(8) On December 19 2022 Xiaojia Technology a subsidiary of the Company received
the Certificate of High-Tech Enterprise jointly issued by Shenzhen Science and Technology
Innovation Committee Shenzhen Finance Bureau and Shenzhen Tax Service of State
Taxation Administration with the certificate number GR202244203274 which is valid for
three years. According to relevant tax regulations Xiaojia Technology enjoys relevant
preferential tax policies for high-tech enterprises for three consecutive years from 2022 to
2024 and pays enterprise income tax at a preferential tax rate of 15%.
(9) On November 29 2023 Shaanxi Konka a subsidiary of the Company obtained the
Certificate of High-Tech Enterprise jointly issued by the Department of Science and
Technology of Shanxi Province the Department of Finance of Shanxi Province and the
Shanxi Provincial Tax Service of State Taxation Administration with the certificate number
GR202361002167 which will be valid for three years. According to relevant tax regulations
181Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Shaanxi Konka enjoys relevant preferential tax policies for high-tech enterprises for three
consecutive years from 2023 to 2025 and pays enterprise income tax at a preferential tax rate
of 15%.
(10) On November 6 2023 Jiangsu Konka Smart a subsidiary of the Company
obtained the Certificate of High-Tech Enterprise jointly issued by the Department of Science
and Technology of Jiangsu Province the Department of Finance of Jiangsu Province and the
Jiangsu Provincial Tax Service of State Taxation Administration with the certificate number
GR202332008044 which will be valid for three years. According to relevant tax regulations
Jiangsu Konka Smart enjoys relevant preferential tax policies for high-tech enterprises for
three consecutive years from 2023 to 2025 and pays enterprise income tax at a preferential
tax rate of 15%.
(11) In accordance with the Announcement on the Renewal of the Enterprise Income
Tax Policy for Western Development Enterprises (Ministry of Finance State Taxation
Administration National Development and Reform Commission Announcement No. 23 of
2020) an enterprise established in the western region who is mainly engaged in an industry
specified in the Catalogue of Encouraged Industries in the Western Region and whose main
business income accounts for over 60% of its gross income in the current year is entitled to a
reduced corporate income tax rate of 15%. Chengdu Konka Electronic a subsidiary of the
Company is eligible for this preferential tax policy.
(12) According to the CS [2011] No. 100 published by the Ministry of Finance and the
State Taxation Administration for the VAT general taxpayers who sell their self-developed
and produced software products the VAT shall be levied at the rate of 13% and then the
portion of the actual VAT burden exceeding 3% shall be refunded immediately upon
collection. The Company’s subsidiaries Electronic Technology and Anhui Tongchuang all
enjoy this preferential policy.VI. Notes to Major Items in the Consolidated Financial Statements
of the Company
Unless otherwise noted for the financial statement data disclosed below "beginning of
the year" refers to January 1 2024 "end of the year" refers to December 31 2024 "the
current year" refers to the period from January 1 2024 to December 31 2024 and "last year"
refers to the period from January 1 2023 to December 31 2023. The monetary unit is
renminbi.
1. Monetary assets
Item Ending balance Beginning balance
Cash on hand 208.19 469.28
Bank deposits 2942927002.53 5892986243.07
Other monetary assets 1172840037.01 613372864.67
Total 4115767247.73 6506359577.02
182Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Item Ending balance Beginning balance
Of which: Total amount deposited overseas 16326669.23 55324772.13
Remarks: the ending balance of other monetary funds is mainly the balance of time
deposits margin deposits and account balance on WeChat Alipay and other platforms. For
details of restricted funds please refer to Note VI. 23. Assets with restricted ownership or use
right.
2. Trading financial assets
Item Ending balance Beginning balance
Financial assets measured at fair value
286648129.34469636700.78
through current profit or loss
Including: Investment in equity
286648129.34469636700.78
instruments
Total 286648129.34 469636700.78
3. Notes receivable
(1) Classified presentation of notes receivable
Item Ending balance Beginning balance
Bank acceptance bills 148019004.66 517759367.29
Trade Acceptance 21656171.50 15412581.86
Total 169675176.16 533171949.15
(2) Listed by withdrawal methods for provision for bad debts
Ending balance
Provision for bad
Book balance
debts
Type
Provision Book value
Percentage
Amount Amount percentage
(%)
(%)
Provision set aside for
bad debts by the single
item
Provision set aside for 170126162.18 100.00 450986.02 0.27 169675176.16
bad debts by portfolio
Including: Bank 148019004.66 87.01 148019004.66
acceptance bills
183Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Ending balance
Provision for bad
Book balance
debts
Type
Provision Book value
Percentage
Amount Amount percentage
(%)
(%)
Trade Acceptance 22107157.52 12.99 450986.02 2.04 21656171.50
Total 170126162.18 100.00 450986.02 0.27 169675176.16
(Continued)
Beginning balance
Provision for bad
Book balance
debts
Type
Provision Book value
Percentage
Amount Amount percentage
(%)
(%)
Provision set aside for
bad debts by the single
item
Provision set aside for 533492913.47 100.00 320964.32 0.06 533171949.15
bad debts by portfolio
Including: Bank 517759367.29 97.05 517759367.29
acceptance bills
Trade Acceptance 15733546.18 2.95 320964.32 2.04 15412581.86
Total 533492913.47 100.00 320964.32 0.06 533171949.15
Provision for expected credit losses on commercial acceptance draft based on aging in
the portfolio
Ending balance
Description Provision for bad Provision
Book balance
debts percentage (%)
Within 1 year 22107157.52 450986.02 2.04
Total 22107157.52 450986.02 2.04
(3) Provision for bad debts of notes receivable set aside recovered or reclassified in
the current year
Type Beginning Change in the current year Ending
balance balance
184Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Charge
Recovered
-off or Othe
Provision or
write- rs
reversed
off
Trade Acceptance 320964.32 450986.02 320964.32 450986.02
Total 320964.32 450986.02 320964.32 450986.02
(4) Notes receivable pledged at the end of the year
Amount pledged at the end of the
Item
year
Bank acceptance bills 15900000.00
Total 15900000.00
(5) Notes receivable endorsed or discounted but had not yet matured on the balance
sheet date at the end of the year
Amount derecognized at Amount not derecognized
Item
the end of the year at the end of the year
Bank acceptance bills 1317732411.95
Trade Acceptance 12820620.61
Total 1317732411.95 12820620.61
(6) Notes receivable actually written off in the current year
No notes receivable actually written off in the current year
4. Accounts receivable
(1) Accounts receivable listed by aging portfolio
Aging Ending book balance Beginning book balance
Within one year (inclusive) 985155712.60 1489573102.24
1-2 years 467086582.23 152217296.67
2-3 years 112149892.90 131889796.60
3-4 years 117756261.01 265897663.73
4-5 years 255011480.57 674517508.86
Over 5 years 1217501924.55 894028569.23
Total 3154661853.86 3608123937.33
(2) Accounts receivable listed by withdrawal methods for bad debts
Type Ending balance
185Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Book balance Provision for bad debts
Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
Provision set aside for 1452875517.73 46.05 1371250436.68 94.38 81625081.05
bad debts by the single
item
Provision set aside for
bad debts by portfolio
Of which: Aging 1701786336.13 53.95 324488350.48 19.07 1377297985.65
portfolio
Subtotal of portfolio 1701786336.13 53.95 324488350.48 19.07 1377297985.65
Total 3154661853.86 100.00 1695738787.16 53.75 1458923066.70
(Continued)
Beginning balance
Book balance Provision for bad debts
Type Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
Provision set aside for 1601967285.04 44.40 1524090371.01 95.14 77876914.03
bad debts by the single
item
Provision set aside for
bad debts by portfolio
Of which: Aging 2006156652.29 55.60 357487593.24 17.82 1648669059.05
portfolio
Subtotal of portfolio 2006156652.29 55.60 357487593.24 17.82 1648669059.05
Total 3608123937.33 100.00 1881577964.25 52.15 1726545973.08
1) Provision set aside for bad debts of accounts receivable by single item
Beginning balance Ending balance
Provision Reasons for
Description Provision for bad Provision for bad
Book balance Book balance percentage the
debts debts
(%) provision
CEFC Shanghai Not expected
299136676.70293153943.17298855950.30298855950.30100.00
International Group to be
186Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Beginning balance Ending balance
Provision Reasons for
Description Provision for bad Provision for bad
Book balance Book balance percentage the
debts debts
(%) provision
Limited recoverable
Not expected
Hongtu Sanpower
200000000.00 180000000.00 200000000.00 200000000.00 100.00 to be
Technology Co. Ltd.recoverable
Not expected
Shenzhen Yaode
145562210.29 145562210.29 147734652.40 147734652.40 100.00 to be
Technology Co. Ltd.recoverable
Guangan Ouqishi Expected to be
Electronic 113140553.53 110965942.46 113139940.86 110965942.46 98.08 difficult to
Technology Co. Ltd. recover
Zhongfu Tiangong Not expected
Construction Group 71389096.65 53541822.49 71289096.65 71289096.65 100.00 to be
Co. Ltd. recoverable
CCCC First Harbor Not expected
Engineering Company 65221300.00 65221300.00 65221300.00 65221300.00 100.00 to be
Ltd. recoverable
Gome Customization Not expected
(Tianjin) Home 59569295.02 59569295.02 57021975.73 57021975.73 100.00 to be
Appliances Co. Ltd. recoverable
Not expected
Xingda Hongye (HK)
51902301.95 51902301.95 51902301.95 51902301.95 100.00 to be
Limited
recoverable
Dongguan High Not expected
Energy Polymer 50699037.70 32893535.66 64.88 to be fully
Materials Co. Ltd. recovered
China Energy Not expected
(Shanghai) Industrial 50000000.00 50000000.00 49993564.16 49993564.16 100.00 to be
Co. Ltd. recoverable
Not expected
Others 546045850.90 514173555.63 347017697.98 285372117.37 82.24 to be fully
recovered
Total 1601967285.04 1524090371.01 1452875517.73 1371250436.68 — —
2) Provision set aside for bad debts of accounts receivable by portfolio
187Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Ending balance
Aging Provision for bad Provision
Book balance
debts percentage (%)
Within 1 year 957061940.69 19524063.55 2.04
1-2 years 409952097.73 41077200.19 10.02
2-3 years 49910568.10 11324707.92 22.69
3-4 years 91968538.70 59669187.91 64.88
4-5 years 64276230.99 64276230.99 100.00
Over 5 years 128616959.92 128616959.92 100.00
Total 1701786336.13 324488350.48 19.07
(3) Provision for bad debts of accounts receivable set aside recovered or
reclassified in the current year
Change in the current year
Type Beginning balance Recovered or
Provision
reversed
Provision for bad debts
1881577964.25183551748.4745070747.22
of accounts receivable
Total 1881577964.25 183551748.47 45070747.22
(Continued)
Change in the current year
Type Charge-off or write- Ending balance
Others
off
Provision for bad debts
39075101.41-285245076.931695738787.16
of accounts receivable
Total 39075101.41 285245076.93 1695738787.16
Remarks: among other changes this year there was an increase of RMB5802505.43 due
to exchange rate fluctuations and a decrease of RMB291047582.36 yuan due to the
bankruptcy liquidation of company Kangjia Huanjia.
(4) Accounts receivable actually written off in the current year
Item Amount written off
Accounts receivable written off 39075101.41
There was no significant write-off of accounts receivable in the current year.
188Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
(5) Top five accounts receivable and contract assets in the Ending balance
categorized by debtors
The total amount of accounts receivable with top five Ending balance categorized by
debtors in the current year was RMB1260131772.42 accounting for 39.95% of the total
Ending balance of accounts receivable. The total Ending balance of provision for bad debts
correspondingly set aside was RMB543470115.36.
5. Contract Assets
(1) Contract assets
Ending balance Beginning balance
Provision Provision
Item
Book balance for bad Book value Book balance for bad Book value
debts debts
Warranty 2867437.14 236928.54 2630508.60 2236000.34 45614.41 2190385.93
Total 2867437.14 236928.54 2630508.60 2236000.34 45614.41 2190385.93
(2) Classified presentation of contract assets by provisioning methods of bad
debts
Ending balance
Book balance Provision for bad debts
Type Percen Provision
Book value
Amount tage Amount percentage
(%)(%)
Provision set aside for
bad debts by the single
item
Provision set aside for
bad debts by portfolio
Of which: Aging
2867437.14100.00236928.548.262630508.60
portfolio
Subtotal of portfolio 2867437.14 100.00 236928.54 8.26 2630508.60
Total 2867437.14 100.00 236928.54 8.26 2630508.60
(Continued)
Beginning balance
Type
Book balance Provision for bad debts Book value
189Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Provision
Percentage
Amount Amount percentage
(%)
(%)
Provision set aside for
bad debts by the
single item
Provision set aside for
bad debts by portfolio
Of which: Aging
2236000.34100.0045614.412.042190385.93
portfolio
Subtotal of portfolio 2236000.34 100.00 45614.41 2.04 2190385.93
Total 2236000.34 100.00 45614.41 2.04 2190385.93
Provision set aside for bad debts of contract assets by portfolio
Ending balance
Description Provision for Provision
Book balance
bad debts percentage (%)
Within 1 year 631436.80 12881.31 2.04
1-2 years 2236000.34 224047.23 10.02
Total 2867437.14 236928.54 8.26
(Continued)
Beginning balance
Description Provision for Provision
Book balance
bad debts percentage (%)
Within 1 year 2236000.34 45614.41 2.04
1-2 years
Total 2236000.34 45614.41 2.04
(3) Provision for bad debts of contract assets
Change in the current year
Recovered
Charge-
Beginning or End of the
The current off/Write-
Item of the year reversed Others year Reason
year off in the
Balance in the Change Balance
Provision current
current
year
year
190Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Item Beginning Change in the current year End of the Reason
of4t5he61y4e.a4r1 191314.13 23y6ea9r28.54 Normal
Warranty
Balance Balance provision
Total 45614.41 191314.13 236928.54 —
(4) Contract assets actually written off in the current year
There were no contract assets actually written off in the current year.
6. Receivables financing
Item Ending balance Beginning balance
Notes receivable 63943324.53 173396326.14
Total 63943324.53 173396326.14
7. Other receivables
Item Ending balance Beginning balance
Interest receivable 6681258.01
Dividends receivable 941482.38
Other receivables 989245120.86 981498327.12
Total 989245120.86 989121067.51
7.1 Interest receivable
Item Ending balance Beginning balance
Time deposit 6681258.01
Total 6681258.01
7.2 Dividends receivable
The investee Ending balance Beginning balance
Shenzhen Jielunte Technology Co.
941482.38
Ltd.Total 941482.38
7.3 Other receivables
(1) Classified by account nature
Nature of fund Ending book balance Beginning book balance
Deposit and margin 344822666.77 1234840210.69
Intercourse funds among minority
182764171.72179663586.05
shareholders in the business
191Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Nature of fund Ending book balance Beginning book balance
consolidation not under the same
control and related parties
Energy-saving subsidies receivable 152399342.00 152399342.00
Intercourse funds with related
2253362393.92271570568.23
parties
Others 1035865828.21 1224559355.79
Total 3969214402.62 3063033062.76
(2) Other receivables listed by aging
Aging Ending book balance Beginning book balance
Within one year (inclusive) 394812584.95 253550068.51
1-2 years 206901565.92 77519916.42
2-3 years 110433169.22 551521166.18
3-4 years 683019991.91 690507047.29
4-5 years 771766144.27 1092957617.71
Over 5 years 1802280946.35 396977246.65
Total 3969214402.62 3063033062.76
(3) Classified presentation of other receivables by provisioning methods of bad
debts
Ending balance
Book balance Provision for bad debts
Type Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
Provision set aside
for bad debts by the 3524335366.36 88.79 2773496740.31 78.70 750838626.05
single item
Provision set aside
for bad debts by
portfolio
Of which: Aging
204938477.005.16168912851.7482.4236025625.26
portfolio
Low Risk
239940559.266.0537559689.7115.65202380869.55
Combination
192Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Ending balance
Book balance Provision for bad debts
Type Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
Subtotal of portfolio 444879036.26 11.21 206472541.45 46.41 238406494.81
Total 3969214402.62 100.00 2979969281.76 75.08 989245120.86
(Continued)
Beginning balance
Book balance Provision for bad debts
Type Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
Provision set aside for
bad debts by the single 1960682465.29 64.01 1644122039.53 83.85 316560425.76
item
Provision set aside for
bad debts by portfolio
Of which: Aging
975322848.9931.84413933906.3942.44561388942.60
portfolio
Low Risk Combination 127027748.48 4.15 23478789.72 18.48 103548958.76
Subtotal of portfolio 1102350597.47 35.99 437412696.11 39.68 664937901.36
Total 3063033062.76 100.00 2081534735.64 67.96 981498327.12
193Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
1) Provision set aside for bad debts of other receivables by portfolio
Ending balance
Aging Provision for Provision
Book balance
bad debts percentage (%)
Within 1 year 154043693.12 1712968.68 1.11
1-2 years 23768853.22 2146728.84 9.03
2-3 years 67248004.99 6885804.00 10.24
3-4 years 5551506.14 2079980.14 37.47
4-5 years 36283271.67 35663352.67 98.29
Over 5 years 157983707.12 157983707.12 100.00
Total 444879036.26 206472541.45 46.41
2) Provision set aside for bad debts of other receivables by the general expected
credit loss model
Phase I Phase II Phase III
Expected credit loss Expected credit loss
Expected credit during the whole during the whole
Provision for bad debts Total
loss for the next outstanding outstanding
12 months maturity (without maturity (with
credit impairment) credit impairment)
Balance as of January 1
1443228.60435969467.511644122039.532081534735.64
2024
Balance as of January 1
2024 in the current year
-- Transferred to Phase II -450083.09 450083.09
-- Transferred to Phase III -17014.80 -257278612.45 257295627.25
-- Reclassified under
Phase II
-- Reclassified under
Phase I
Provision in the current
1712968.6838211669.61269161790.94309086429.23
year
Recovery in the current
976130.7110214966.3417794376.0728985473.12
year
Charge-off in the current
year
194Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Phase I Phase II Phase III
Expected credit loss Expected credit loss
Expected credit during the whole during the whole
Provision for bad debts Total
loss for the next outstanding outstanding
12 months maturity (without maturity (with
credit impairment) credit impairment)
Write-off in the current
1730786.9296000.001826786.92
year
Other changes -647281.73 620807658.66 620160376.93
Balance as of December
1712968.68204759572.772773496740.312979969281.76
312024
Remarks: the first stage is that credit risk has not increased significantly since initial
recognition. For other receivables with an aging portfolio and a low-risk portfolio within one
year the loss provision is measured according to the expected credit losses in the next 12
months.The second stage is that credit risk has increased significantly since initial recognition
but credit impairment has not yet occurred. For other receivables with an aging portfolio and a
low-risk portfolio that exceed one year the loss provision is measured based on the expected
credit losses for the entire duration.The third stage is the credit impairment after initial confirmation. For other receivables
of credit impairment that have occurred the loss provision is measured according to the credit
losses that have occurred throughout the duration.
(4) Provision for bad debts of other receivables set aside recovered or reclassified
in the current year
Change in the current year
Type Beginning balance Recovered or
Provision
reversed
Provision for bad debts
2081534735.64309086429.2328985473.12
of other receivables
Total 2081534735.64 309086429.23 28985473.12
(Continued)
Change in the current year
Type Charge-off or Ending balance
Others
write-off
195Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Change in the current year
Type Charge-off or Ending balance
Others
write-off
Provision for bad
debts of other 1826786.92 620160376.93 2979969281.76
receivables
Total 1826786.92 620160376.93 2979969281.76
Remarks: among other changes this year there was an increase of RMB7365507.60 due
to exchange rate fluctuations and an increase of RMB612794869.33 due to the bankruptcy
liquidation of the company Kangjia Huanjia.
(5) Other receivables actually written off in the current year
Item Amount written off
Other accounts receivable written off 1826786.92
(6) Other receivables with top five year-end balances categorized by debtors
The total amount of other receivables with top five ending balance categorized by
debtors in the current year was RMB3011425164.36 accounting for 75.87% of the total
ending balance of other receivables. The total ending balance of provision for bad debts
correspondingly set aside was RMB2331392350.37.
8. Prepayments
(1) Age of prepayments
Ending balance Beginning balance
Item Percentage Percentage
Amount Amount
(%)(%)
Within 1 year 101180248.89 81.11 114332392.60 69.10
1-2 years 2820065.05 2.26 827985.04 0.50
2-3 years 565293.20 0.45 46545996.66 28.13
Over 3 years 20182805.45 16.18 3747937.21 2.27
Total 124748412.59 100.00 165454311.51 100.00
Remarks: The amount of advanced payments aged over one year at the end of the period
is RMB 23568163.70 accounting for 18.89% of the total balance of advanced payments of
the Group and consists mainly of unsettled payments.
(2) Top five prepayments in the Ending balance categorized by payees
196Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
The sum of the top five Ending balances categorized by payees in the current year was
RMB 101160938.74 accounting for 81.09% of the total Ending balance.
197Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
9. Inventories
(1) Inventory classification
Ending balance
Item Provision for
Book balance Book value
depreciation
Raw materials 665144044.54 108024878.82 557119165.72
Semi-finished
110372128.6942305974.4168066154.28
products
Commodities in stock 2189720769.60 491936445.95 1697784323.65
Commissioned
2235269.96262121.441973148.52
products
Development costs 26677475.24 26677475.24
Developing products 346650809.82 3622890.30 343027919.52
Total 3340800497.85 646152310.92 2694648186.93
(Continued)
Beginning balance
Item Provision for
Book balance Book value
depreciation
Raw materials 593131602.70 86829664.81 506301937.89
Semi-finished
96408258.9641741196.1954667062.77
products
Commodities in stock 2636678840.40 490032803.73 2146646036.67
Commissioned
1934264.95211225.911723039.04
products
Development costs 540559624.61 540559624.61
Total 3868712591.62 618814890.64 3249897700.98
(2) Inventory falling price reserves
Beginning Increase in the current year
Item
balance Provision Others
Raw materials 86829664.81 80586300.35 561587.87
Semi-finished
41741196.1913564877.03546.15
products
Commodities in
490032803.73347485033.843805712.90
stock
198Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Beginning Increase in the current year
Item
balance Provision Others
Commissioned
211225.9146210.834684.70
products
Developing
3622890.30
products
Total 618814890.64 445305312.35 4372531.62
(Continued)
Decrease in the current year
Item Ending balance
Reversal or write-off Others
Raw materials 59952674.21 108024878.82
Semi-finished
13000644.9642305974.41
products
Commodities in stock 347466738.91 1920365.61 491936445.95
Commissioned
262121.44
products
Developing products 3622890.30
Total 420420058.08 1920365.61 646152310.92
Remarks: other increases this year were due to exchange rate fluctuations while other
decreases were due to the bankruptcy liquidation of subsidiary Kangjia Huanjia.Specific basis for determining the realizable net value and reasons for inventory falling
price reserves and impairment provision for contract performance costs transferred back or
written off during the current year:
Item Specific basis for withdrawal of
Reasons for charge-off of
inventory falling price reserves provision for inventoriesimpairment in the current year
Raw materials The realizable net value was They have been sold or used in thelower than the book value current year
Semi-finished The realizable net value was They have been sold or used in the
products lower than the book value current year
Commodities in The realizable net value was They have been sold in the current
stock lower than the book value year
10. Other current assets
Item Ending balance Beginning balance
Principal and interests of entrusted
1590781482.741744123316.97
loans to associated enterprises
199Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Item Ending balance Beginning balance
Prepayments and deductible taxes
and refund of tax for export 525546353.28 569875346.61
receivable
Deferred expenses 18606081.90 28112001.12
Costs receivable for returning goods 14460748.65 15925346.67
Others 19005345.90 1123457.38
Total 2168400012.47 2359159468.75
200Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
11. Investments in other equity instruments
(1) Other equity instrument investments
Changes in the current year Accumul Accumul
ated ated
gains losses
Divide Reason for
included included
nd assigning to
Losses in other in other
Gains income measure at fair
included compreh compreh
Beginning Increase in Decrease in included in Ending recogni value of which
Item in other ensive ensive
balance the the other Others balance zed in changes
compreh income income
investment investment comprehen the included other
ensive at the at the
sive income curren comprehensive
income end of end of
t year income
the the
current current
year year
Beijing Huyu
Entertainment Long-term
Digital 5901121.80 holding based on
5901121.80
Technology strategic purpose
Co. Ltd.Feihong Long-term
201Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Changes in the current year Accumul Accumul
ated ated
gains losses
Divide Reason for
included included
nd assigning to
Losses in other in other
Gains income measure at fair
included compreh compreh
Beginning Increase in Decrease in included in Ending recogni value of which
Item in other ensive ensive
balance the the other Others balance zed in changes
compreh income income
investment investment comprehen the included other
ensive at the at the
sive income curren comprehensive
income end of end of
t year income
the the
current current
year year
Electronics holding based on
Co. Ltd. strategic purpose
Long-term
ZAEFI holding based on
strategic purpose
Shenzhen
Long-term
Chuangce
holding based on
Investment
strategic purpose
Development
202Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Changes in the current year Accumul Accumul
ated ated
gains losses
Divide Reason for
included included
nd assigning to
Losses in other in other
Gains income measure at fair
included compreh compreh
Beginning Increase in Decrease in included in Ending recogni value of which
Item in other ensive ensive
balance the the other Others balance zed in changes
compreh income income
investment investment comprehen the included other
ensive at the at the
sive income curren comprehensive
income end of end of
t year income
the the
current current
year year
Co. Ltd.Shanlian
Information Long-term
Technology 1860809.20 holding based on
1860809.20
Engineering strategic purpose
Centre
Shenzhen CIU Long-term
Science & 953000.00 953000.00 holding based on
Technology strategic purpose
203Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Changes in the current year Accumul Accumul
ated ated
gains losses
Divide Reason for
included included
nd assigning to
Losses in other in other
Gains income measure at fair
included compreh compreh
Beginning Increase in Decrease in included in Ending recogni value of which
Item in other ensive ensive
balance the the other Others balance zed in changes
compreh income income
investment investment comprehen the included other
ensive at the at the
sive income curren comprehensive
income end of end of
t year income
the the
current current
year year
Co. Ltd.Shenzhen
Digital TV
Long-term
National
7726405.16 7726405.16 holding based on
Engineering
strategic purpose
Laboratory
Co. Ltd.Shanghai Long-term
2400000.00
National 2400000.00 holding based on
204Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Changes in the current year Accumul Accumul
ated ated
gains losses
Divide Reason for
included included
nd assigning to
Losses in other in other
Gains income measure at fair
included compreh compreh
Beginning Increase in Decrease in included in Ending recogni value of which
Item in other ensive ensive
balance the the other Others balance zed in changes
compreh income income
investment investment comprehen the included other
ensive at the at the
sive income curren comprehensive
income end of end of
t year income
the the
current current
year year
Engineering strategic purpose
Research
Centre of
Digital TV Co.Ltd.Long-term
BOHUA UHD 5000001.00 holding based on
5000001.00
strategic purpose
Total 23841337.1 7726405.16 16114932.0 —
205Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Changes in the current year Accumul Accumul
ated ated
gains losses
Divide Reason for
included included
nd assigning to
Losses in other in other
Gains income measure at fair
included compreh compreh
Beginning Increase in Decrease in included in Ending recogni value of which
Item in other ensive ensive
balance the the other Others balance zed in changes
compreh income income
investment investment comprehen the included other
ensive at the at the
sive income curren comprehensive
income end of end of
t year income
the the
current current
year year
60
(2) Derecognition at the end of the current year
Accumulated gains Accumulated
transferred to losses transferred
Fair value at Reason for
Item retained earnings to retained
derecognition derecognition
due to earnings due to
derecognition derecognition
Shenzhen Digital TV National Engineering Laboratory Co. 31246200.00 23519794.84 Equity transfer
206Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Accumulated gains Accumulated
transferred to losses transferred
Fair value at Reason for
Item retained earnings to retained
derecognition derecognition
due to earnings due to
derecognition derecognition
Ltd.Total 31246200.00 23519794.84 —
207Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
12. Long-term equity investments
Changes in the current year
Provision for
Beginning Profit or loss of Changes in
impairment
The investee balance Increase in the Decrease in the investment other
Beginning
(Book value) investment investment recognized by the comprehensive
balance
equity method income
Associate
Kangkong Venture Capital (Shenzhen) Co.
5004579.62179727.25
Ltd.Nanjing Zhihuiguang Information
2019287.362115.36
Technology Research Institute Co. Ltd.Feidi Technology (Shenzhen) Co. Ltd. 10706907.72 4413646.40
Shenzhen Kangyue Enterprise Co. Ltd. 24977328.88
Foshan Pearl River Media Creative Park
Culture Development Co. Ltd.Kangkai Technology Service (Chengdu)
114193.79-26543.05
Co. Ltd.Puchuang Jiakang Technology Co Ltd. 2716274.71 906362.66
Shenzhen Jielunte Technology Co. Ltd. 94917575.00 -5858030.36
Panxu Intelligence Co. Ltd. 48686477.11 47534354.06 -1152123.05
Orient Excellent (Zhuhai) Asset 8198574.99 409854.67
208Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
The investee Beginning Provision for Changes in the current year
Management Co. Ltd. balance impairment
Oriental Jiakang No. 1 (Zhuhai) Private (Book value) Beginning
Equity Investment Fund (Limited 338089300.42 balance 3160855.11 1021219.91
Partnership)
Tongxiang Wuzhen Kunyu Venture Capital
3524037.083922.88
Co. Ltd.Shenzhen RF-Llink Technology Co. Ltd. 85656027.35
Anhui Kaikai Shijie E-commerce Co. Ltd. 418814414.98 -17390453.36
Kunshan Kangsheng Investment
207333483.86117988276.54-3336356.30
Development Co. Ltd.Shanxi Silk Road Cloud Intelligent Tech
5187588.48-1719653.88
Co. Ltd.Shenzhen Kanghongxing Intelligent
12660222.73
Technology Co. Ltd.Shenzhen Zhongkang Beidou Technology
Co. Ltd.Shenzhen Yaode Technology Co. Ltd. 214559469.35
Wuhan Tianyuan Environmental Protection
512729351.1145219787.67
Co. Ltd.Chuzhou Konka Technology Industry
39335548.57-8025705.96
Development Co. Ltd.
209Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
The investee Beginning Provision for Changes in the current year
Chuzhou Kangjin Health Industrial balance impairment
239037618.98-43880778.79
Development Co. Ltd. (Book value) Beginning
Nantong Kangjian Technology Industrial balance
107310029.86-623472.05
Park Operations and Management Co. Ltd.Chuzhou Kangxin Health Industry
180752809.79-2073946.32
Development Co. Ltd.Dongguan Guankang Yuhong Investment
501408938.92-18723799.88
Co. Ltd.Shenzhen Morsemi Semiconductor
Technology Co. Ltd.Econ Technology 1130575773.36 81806510.02 -17225679.93
Dongguan Kangjia New Materials
6857694.77-625775.53
Technology Co. Ltd..Chongqing E2info Technology Co. Ltd. 1048983188.06 5440718.75
Yantai Kangyun Industrial Development
65884386.16-5244545.93
Co. Ltd.E3info (Hainan) Technology Co. Ltd. 30715678.97
Shenzhen Kangjia Jiapin Intelligent
7090590.47-1194072.40
Electrical Apparatus Technology Co. Ltd.Shenzhen KONKA E-display Co. Ltd. 85057438.63 9388796.88 118274.81
Chongqing Yuanlv Benpao Real Estate Co. 28089915.82 -2349915.82
210Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
The investee Beginning Provision for Changes in the current year
Ltd. balance impairment
Shenzhen Kangpeng Digital Technology (Book value) Beginning
1770021.01 balance -459254.09Co. Ltd.
Yantai Kangtang Construction
862394.07405886.81
Development Co. Ltd.Dongguan Konka Smart Electronic
24124143.70-5238101.82
Technology Co. Ltd.Shenzhen Aimijiakang Technology Co.
1173870.571075836.93-98033.64
Ltd.Beijing Konka Jingyuan Technology Co.
703703.42-15746.38
Ltd.Chongqing Liangshan Enterprise
178368.5351326.72
Management Co. Ltd.Shenzhen Kangxi Technology Innovation
1026306.0715019.67
Development Co. Ltd.Shandong Kangfei Intelligent Electrical
245911.63
Appliances Co. Ltd.Henan Kangfei Intelligent Electric
1939694.341597778.51-341915.83
Appliance Co. Ltd.Guangdong Kangyuan Semiconductor Co.
9957207.04-2596664.97
Ltd.
211Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
The investee Beginning Provision for Changes in the current year
Chongqing Kangyiqing Technology Co. balance impairment
6337
Ltd. (Book valu
1e9).09 Beginning 2107.17
Zhejiang Kangying Semiconductor balance
Technology Co. Ltd. (formerly: Shenzhen 19339655.22 -2189024.18 -312479.59
Kangying Semiconductor Technology)
KK Smartech Limited 1612150.56 -18059.12
Chongqing Kangjian Photoelectric
8329131.78-5051714.58
Technology Co. Ltd.Anhui Kangta Supply Chain Management
17256599.85-475593.42
Co. Ltd.Wuhan Kangtang Information Technology
25757222.60-9903560.82
Co. Ltd.Sichuan Chengrui Real Estate Co. Ltd. 31708992.07 -7719223.80
Jiakang Industrial Development (Wuhan)
Co. Ltd. (formerly: Konka Industrial 42134231.89 -3449819.17
Development (Wuhan) Co. Ltd.)
Hefei KONSEMI Storage Technology Co.
188654285.6674785430.07-34874088.31940.09
Ltd.Xi'an Kang'an Intelligent Storage
6000000.00-233447.02
Technology Co. Ltd.Sichuan Hongxinchen Real Estate 53934595.60
212Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
The investee Beginning Provision for Changes in the current year
Development Co. Ltd. balance impairment
Konka Huanjia Environmental Technology (Book value) Beginning
Co. Ltd. balance
Total 5566483863.29 419659558.33 246142531.22 -134654606.96 -193264.69
(Continued)
Changes in the current year
Cash Provision for
dividends or Provision set Ending balance impairment
The investee Changes in
profits aside for Others (Book value) Ending
other equities
declared to be impairment balance
distributed
Associate
Kangkong Venture Capital (Shenzhen)
55392.385128914.49
Co. Ltd.Nanjing Zhihuiguang Information
17358.622004044.10
Technology Research Institute Co. Ltd.Feidi Technology (Shenzhen) Co. Ltd. 15120554.12
Shenzhen Kangyue Enterprise Co. Ltd. 24977328.88
Foshan Pearl River Media Creative Park
Culture Development Co. Ltd.
213Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
The investee Changes in the current year Ending balance Provision for
Kangkai Technology Service (Chengdu) (Book value) impairment
87650.74
Co. Ltd. Ending
Puchuang Jiakang Technology Co Ltd. -62139.95 3560497.42 balance
Shenzhen Jielunte Technology Co. Ltd. 89059544.64
Panxu Intelligence Co. Ltd.Orient Excellent (Zhuhai) Asset
8608429.66
Management Co. Ltd.Oriental Jiakang No. 1 (Zhuhai) Private
Equity Investment Fund (Limited 1338792.90 334610872.32
Partnership)
Tongxiang Wuzhen Kunyu Venture
3527959.96
Capital Co. Ltd.Shenzhen RF-Llink Technology Co. Ltd. 85656027.35
Anhui Kaikai Shijie E-commerce Co.
68817908.06332606053.5668817908.06
Ltd.Kunshan Kangsheng Investment
7350000.0078658851.02
Development Co. Ltd.Shanxi Silk Road Cloud Intelligent Tech
3467934.60
Co. Ltd.Shenzhen Kanghongxing Intelligent
12660222.73
Technology Co. Ltd.
214Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
The investee Changes in the current year Ending balance Provision for
Shenzhen Zhongkang Beidou Technology (Book value) impairment
Co. Ltd. Ending
Shenzhen Yaode Technology Co. Ltd. 214b5a5l9an4c6e9.35
Wuhan Tianyuan Environmental
-1641801.6810465181.53545842155.57
Protection Co. Ltd.Chuzhou Konka Technology Industry
31309842.61
Development Co. Ltd.Chuzhou Kangjin Health Industrial
195156840.19
Development Co. Ltd.Nantong Kangjian Technology Industrial
Park Operations and Management Co. 106686557.81
Ltd.Chuzhou Kangxin Health Industry
178678863.47
Development Co. Ltd.Dongguan Guankang Yuhong Investment
482685139.04
Co. Ltd.Shenzhen Morsemi Semiconductor
Technology Co. Ltd.Econ Technology 265931400.00 847418693.43 347737910.02
Dongguan Kangjia New Materials
6231919.24
Technology Co. Ltd..
215Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
The investee Changes in the current year Ending balance Provision for
Chongqing E2info Technology Co. Ltd. 301193.49 68390441.43 2049683.41 (Book 9v8a8lu3e8)4342.28 i6m8p3a9i0rm44e1n.4t3
Yantai Kangyun Industrial Development Ending
60639840.23
Co. Ltd. balance
E3info (Hainan) Technology Co. Ltd. 4000000.00 14000000.00 -1337370.98 11378307.99 14000000.00
Shenzhen Kangjia Jiapin Intelligent
Electrical Apparatus Technology Co. 5896518.07
Ltd.Shenzhen KONKA E-display Co. Ltd. 855000.00 -225300.25 93484210.07
Chongqing Yuanlv Benpao Real Estate
25740000.0025740000.00
Co. Ltd.Shenzhen Kangpeng Digital Technology
1310766.92
Co. Ltd.Yantai Kangtang Construction
1268280.88
Development Co. Ltd.Dongguan Konka Smart Electronic
-237395.6018648646.28
Technology Co. Ltd.Shenzhen Aimijiakang Technology Co.Ltd.Beijing Konka Jingyuan Technology Co.
687957.04
Ltd.Chongqing Liangshan Enterprise 229695.25
216Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
The investee Changes in the current year Ending balance Provision for
Management Co. Ltd. (Book value) impairment
Shenzhen Kangxi Technology Innovation Ending
1041325.74
Development Co. Ltd. balance
Shandong Kangfei Intelligent Electrical
245911.63245911.63
Appliances Co. Ltd.Henan Kangfei Intelligent Electric
Appliance Co. Ltd.Guangdong Kangyuan Semiconductor
7360542.07
Co. Ltd.Chongqing Kangyiqing Technology Co.
635826.26
Ltd.Zhejiang Kangying Semiconductor
Technology Co. Ltd. (formerly:
16838151.45
Shenzhen Kangying Semiconductor
Technology)
KK Smartech Limited 1594091.44
Chongqing Kangjian Photoelectric
3277417.20
Technology Co. Ltd.Anhui Kangta Supply Chain Management
16781006.43
Co. Ltd.Wuhan Kangtang Information 15853661.78
217Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
The investee Changes in the current year Ending balance Provision for
Technology Co. Ltd. (Book value) impairment
Sichuan Chengrui Real Estate Co. Ltd. 23989768.27 Ending
Jiakang Industrial Development (Wuhan) balance
Co. Ltd. (formerly: Konka Industrial 38684412.72
Development (Wuhan) Co. Ltd.)
Hefei KONSEMI Storage Technology
11154147.9773763.2190223618.55
Co. Ltd.Xi'an Kang'an Intelligent Storage
5766552.98
Technology Co. Ltd.Sichuan Hongxinchen Real Estate
53934595.60
Development Co. Ltd.Konka Huanjia Environmental
91800000.00
Technology Co. Ltd.Total 9813539.78 24081725.43 443125661.12 261239.84 4728360853.49 954585219.45
Remarks: (1) Konka Huanjia Environmental Protection Technology Co. Ltd. a holding subsidiary of the Company has been declared bankrupt by the
court; at the end of the year it was not included in the scope of preparation of consolidated financial statements and the provision for impairment of its
investment cost was fully made.
(2) Other changes in the current year were due to unrealized profits from downstream transactions.
218Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
13. Other non-current financial assets
Beginning
Item Ending balance
balance
Kunshan Xinjia Emerging Industry Equity
230264035.04231190200.00
Investment Fund Partnership (Limited Partnership)
China Asset Management-Jiayi Overseas
200732067.00200732067.00
Designated Plan
Tongxiang Wuzhen Jiayu Digital Economy
Industry Equity Investment Partnership (Limited 197621072.79 201451000.00
Partnership)
Yibin OCT Sanjiang Properties Co. Ltd. 174599313.55 199774696.09
Chongqing Kangxin Equity Investment Fund
144028481.56155691200.00
Limited Partnership (Limited Partnership)
Yancheng Kangyan Information Industry
139166271.83162937428.56
Investment Partnership (Limited Partnership)
Daye Trust - Hui Libao No. 19 100000000.00 100000000.00
CCB Trust-Cai Die No. 6 Property Rights Trust
66080293.7066080293.70
Scheme
Yibin Kanghui Electronic Information Industry
Equity Investment Partnership (Limited 59264288.31 60292000.00
Partnership)
Chuzhou Jiachen Information Technology
Consulting Service Partnership (Limited 58296141.16 59700013.59
Partnership)
Tianjin Property No. 8 Enterprise Management
28540777.2628540777.26
Partnership (Limited Partnership)
Tianjin Huacheng Property Development Co. Ltd. 1000000.00 1000000.00
Shenzhen Kanghuijia Technology Co. Ltd. 1033.45 7684.53
Subtotal of equity investments 1399593775.65 1467397360.73
Shenzhen Gaohong Enterprise Consulting
120874956.69109739999.99
Management Partnership (Limited Partnership)
Nanjing Kangfeng Dejia Asset Management
100000000.00100000000.00
Partnership (Limited Partnership)
Shenzhen Zitang No.1 Enterprise Consulting
99000000.0099000000.00
Management Partnership (Limited Partnership)
Shenzhen Beihu Technology Partnership (Limited
59735232.8859735232.88
Partnership)
219Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Beginning
Item Ending balance
balance
Xi'an Bihuijia Enterprise Management Consulting
14685194.1215785194.99
Partnership (Limited Partnership)
Shanxi Kangmengrong Enterprise Management
8520728.559163411.30
Consulting Partnership (Limited Partnership)
Ningbo Yuanqing No.9 Investment Partnership
148855198.11
(Limited Partnership)
Subtotal of debt investments 402816112.24 542279037.27
Total 1802409887.89 2009676398.00
14. Investment property
(1) Investment properties measured at cost
Houses and
Item Land use right Total
buildings
I. Original book value
1. Beginning balance 1558110727.67 91837689.30 1649948416.97
2. Increase in the current year 171913150.31 80990931.80 252904082.11
(1) External purchase
(2) Transfer-in of
inventories\fixed
171913150.3180990931.80252904082.11
assets\construction in
progress\intangible assets
3. Decrease in the current year 14035215.50 713445.26 14748660.76
(1) Disposal 14035215.50 14035215.50
(2) Other transfer out 713445.26 713445.26
4. Ending balance 1715988662.48 172115175.84 1888103838.32
II. The accumulative
depreciation and accumulative
amortization
1. Beginning balance 158180060.30 21541632.80 179721693.10
2. Increase in the current year 55681854.66 3377863.15 59059717.81
(1) Provision or amortization 55681854.66 3377863.15 59059717.81
3. Decrease in the current year 1279416.84 241395.26 1520812.10
(1) Disposal 1279416.84 1279416.84
(2) Other transfer out 241395.26 241395.26
220Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Houses and
Item Land use right Total
buildings
4. Ending balance 212582498.12 24678100.69 237260598.81
III. Provision for impairment
1. Beginning balance
2. Increase in the current year
(1) Provision
3. Decrease in the current year
(1) Disposal
(2) Other transfer out
4. Ending balance
IV. Book value
1. Ending book value 1503406164.36 147437075.15 1650843239.51
2. Beginning book value 1399930667.37 70296056.50 1470226723.87
Remarks: the other transfers out of the reduced amount of investment real estate in this
period were reclassified according to the holding purpose and transferred to intangible assets.
(2) Impairment test of investment properties measured at cost
No provision for impairment of investment properties was made during the current year.
(3) Investment properties measured at fair value
There were no investment properties measured at fair value of the Group.
(4) Investment property converted and measured at fair value in the current year
There was no conversion of investment property measured at fair value in the current
year.
(5) Investment properties in the process of title certificate handling
Reason that the
Item Book value certificate of title was
not completed
Electronic Product Standard Factory The completion filing has
Project of Suining Kangjia 371981941.97 not been done for the
project
Houses and buildings of Xi'an
102530430.44 Being handled
Kanghong
(6) Investment properties with restricted ownership or use right
221Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Item Book value Reason for restriction
Guangming Science and Technology
559047283.38 As collateral for loan
Center
Houses and buildings of Xi'an
102530430.44 As collateral for loan
Kanghong
Properties and buildings of Shaanxi
36742239.98 As collateral for loan
Konka Intelligent
Properties and buildings of Yantai
14134056.47 As collateral for loan
Kangjin
Total 712454010.27
15. Fixed Assets
Item Ending balance Beginning balance
Fixed Assets 5005836928.31 5218297745.16
Liquidation of fixed assets
Total 5005836928.31 5218297745.16
222Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
(1) Fixed assets
Properties and Machinery Electronic Transportation Other
Item Total
buildings equipment equipment vehicle equipment
I. Original book value
1. Beginning balance 4064218816.99 3320880784.80 302188512.88 55935781.31 189243639.88 7932467535.86
2. Increase in the current year 45656054.15 252918706.16 9362248.18 1161694.87 8074740.44 317173443.80
(1) Purchase 43219768.37 194778335.38 9295402.64 1161341.15 5912239.75 254367087.29
(2) Transfer-in of construction
2143737.7358140140.2249646.612110735.8162444260.37
in progress
(3) Other increase 292548.05 230.56 17198.93 353.72 51764.88 362096.14
3. Decrease in the current year 148673918.01 90729488.64 18091602.16 4347916.59 6027859.36 267870784.76
(1) Disposal or write-off 84947193.21 88447784.75 17572459.50 4347916.59 6023127.25 201338481.30
(2) Decrease for loss of
302363.06515092.892876.10820332.05
controlling right
(3) Other decreases 63726724.80 1979340.83 4049.77 1856.01 65711971.41
4. Ending balance 3961200953.13 3483070002.32 293459158.90 52749559.59 191290520.96 7981770194.90
II. Accumulated depreciation
1. Beginning balance 740844429.80 1465754243.66 200150283.49 42094186.82 125133960.40 2573977104.17
2. Increase in the current year 112344592.59 246189457.42 25996833.94 3057760.92 14145739.53 401734384.40
(1) Provision 112189701.38 246189353.68 25889602.60 3057519.46 14103940.74 401430117.86
223Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Properties and Machinery Electronic Transportation Other
Item Total
buildings equipment equipment vehicle equipment
(2) Other increases 154891.21 103.74 107231.34 241.46 41798.79 304266.54
3. Decrease in the current year 55019151.20 73126685.61 14529228.08 3630041.45 5482476.99 151787583.33
(1) Disposal or write-off 48546533.65 72766119.25 14065347.35 3630041.45 5478455.01 144486496.71
(2) Decrease for loss of
167718.39461325.632588.49631632.51
controlling right
(3) Other decreases 6472617.55 192847.97 2555.10 1433.49 6669454.11
4. Ending balance 798169871.19 1638817015.47 211617889.35 41521906.29 133797222.94 2823923905.24
III. Provision for impairment
1. Beginning balance 23987527.51 107259898.81 2789800.42 841445.29 5314014.50 140192686.53
2. Increase in the current year 43413.72 20760602.48 30427.91 74.00 20834518.11
(1) Provision 43413.72 20760602.48 30427.91 74.00 20834518.11
(2) Other increases
3. Decrease in the current year 6943653.05 1972291.49 8799.15 93099.60 9017843.29
(1) Disposal or write-off 6809008.41 1972291.49 8799.15 93099.60 8883198.65
(2) Decrease for loss of
134644.64134644.64
controlling right
(3) Other decreases
4. Ending balance 24030941.23 121076848.24 847936.84 832646.14 5220988.90 152009361.35
IV. Book value
224Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Properties and Machinery Electronic Transportation Other
Item Total
buildings equipment equipment vehicle equipment
1. Ending book value 3139000140.71 1723176138.61 80993332.71 10395007.16 52272309.12 5005836928.31
2. Beginning book value 3299386859.68 1747866642.33 99248428.97 13000149.20 58795664.98 5218297745.16
Note 1: The decrease in disposal or scrapping of buildings machinery and equipment this year is mainly due to the land acquisition and storage matters
of Xinfei Home Appliances.Note 2: The decrease in housing construction caused by other reasons this year is due to the transfer to investment real estate.
225Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
(2) List of temporarily idle fixed assets
Original book Accumulated Provision for
Item Book value
value depreciation impairment
Housing and
263606918.96151468025.627943313.79104195579.55
building
Machinery
994399872.58610704433.79106308066.10277387372.69
equipment
Electronic
9251967.017830280.24132351.901289334.87
equipment
Transportation
3887229.493651820.6720675.15214733.67
vehicle
Other
3714097.481977909.02259822.681476365.78
equipment
Total 1274860085.52 775632469.34 114664229.62 384563386.56
(3) Fixed assets leased out through operating leases
Item Ending book value
Machinery equipment 9042076.75
Electronic equipment 234841.33
Transportation vehicle 13854.83
Other equipment 233690.42
Total 9524463.33
(4) Details of fixed assets failed to accomplish certification of property
Reason
that the
Item Original book Accumulated
Provision
value depreciation for Net book value
certificate
impairment of titlewas not
completed
Fenggang Konka
Intelligent Color 425011644.82 13547246.18 411464398.64 Being
TV Project handled
Anhui Konka's
buildings 185456424.50 14574493.67 170881930.83
Being
handled
Frestec Smart
Home properties 405293032.24 11266450.17 394026582.07 Being
and buildings handled
Standard The
electronic product 1544085.19 101506.83 1442578.36 completionfiling has
226Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Reason
that the
Item Original book Accumulated
Provision certificate
value depreciation for Net book valueimpairment of titlewas not
completed
plants in Sunning not been
done for
the project
Jingyuan Building
property 7700000.00 4417862.89 3282137.11
Being
handled
Yikang Building Being
property 76610752.33 43799731.27 32811021.06 handled
(5) Impairment test of fixed assets
In the current year the Company conducted impairment tests on the fixed assets of its
subsidiaries Frestec Refrigeration Jiangxi Konka and Chengdu Konka Electronics
determined their recoverable amounts based on the net fair value less disposal costs and
recognized an impairment loss on assets of RMB 20834518.11.Recoverable Impairment
Item Book value
amount amount
Machinery equipment of
13043951.932397667.8510646284.08
Frestec Refrigeration
Production line of Jiangxi
209758813.91200234310.009524503.91
Konka
Machinery equipment of
Chengdu Konka 2158154.90 1494424.78 663730.12
Electronics
Total 224960920.74 204126402.63 20834518.11
(Continued)
Determination of
Key Basis for determining key
Item fair value and
parameters parameters
disposal costs
Fair Recycling unit 1. The recycling unit price is
Machinery value=Recovery price determined based on the net disposal
equipment of unit price x equipment price of waste materials (demolition
Frestec Equipment quantity and transportation costs are borne by
Refrigeration quantity; intermediary the recycling unit); 2. The quantity of
disposal service fee equipment is determined through on-
227Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Determination of
Key Basis for determining key
Item fair value and
parameters parameters
disposal costs
cost=intermediary site inventory; 3. The intermediary
service fee service fee mainly includes the
evaluation fee and the intermediary
fee of the trading platform.
1. Replacement cost: mainly through
direct inquiry to distributors or
manufacturers or by referring to the
price list of the website platform; 2.Comprehensive newness rate:
Replacement
comprehensive consideration of the
Fair value = costs
current technical state of the
replacement cost × comprehensive
equipment tangible loss and
comprehensive newness rate
intangible loss and other factors; 3.newness rate × (1 - Economic
Economic depreciation rate = (1 -
economic depreciation
Production (capacity of equipment expected to be
depreciation rate); rate
line of utilized / original design capacity of
Disposal cost = dismantling
Jiangxi equipment) ^ economy of scale index)
demolition cost fees
Konka x 100%. Economy of scale index i.e.freight and transportation
empirical data takes the value of 0.7
miscellaneous and
for the processing industry in general.expenses + miscellaneous
4. Demolition fees and freight and
intermediary fees
miscellaneous expenses: refer to the
service fee intermediary
Manual of Common Methods and
service fees
Parameters for Assets Appraisal and
empirical data; 5. The intermediary
service fee mainly includes the
evaluation fee and the intermediary
fee of the trading platform.Fair 1. The recycling unit price is
Recycling unit
Machinery value=Recovery determined based on the net disposal
price
equipment of unit price x price of waste materials (demolition
equipment
Chengdu Equipment and transportation costs are borne by
quantity
Konka quantity; the recycling unit); 2. The quantity of
intermediary
Electronics disposal equipment is determined through on-
service fee
cost=intermediary site inventory; 3. The intermediary
228Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Determination of
Key Basis for determining key
Item fair value and
parameters parameters
disposal costs
service fee service fee mainly includes the
evaluation fee and the intermediary
fee of the trading platform.Total — — —
(6) Fixed Assets with Restricted Ownership or Use Right
Item Ending book value Reason for restriction
Anhui Konka's buildings 590165081.19 As collateral for loan
Buildings of Chongqing
330531110.12 As collateral for loan
Konka
Properties and buildings of
285398086.08 As collateral for loan
Shanxi Konka Intelligent
Housing and buildings of
135299237.69 As collateral for loan
Anhui Tongchuang
Housing and buildings of
80753926.77 As collateral for loan
Frestec Refrigeration
Buildings of Konka Group 60161433.16 As collateral for loan
Housing and buildings of
32814788.47 As collateral for loan
Jiangsu Konka Smart
Housing and buildings of
27492969.87 As collateral for loan
XingDa HongYe
Machinery equipment of As collateral for finance
7218727.59
Xinfeng Microcrystalline lease
Housing and buildings of Original shareholder
2054161.69
Jiangxi Konka guarantee mortgage
Total 1551889522.63
229Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
16. Construction in progress
(1) Construction in progress
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Jiangxi High-permeability Crystalisation
246576748.5756387538.57190189210.00246576748.5746755148.57199821600.00
Kiln
Construction of Suining Electronic
177739108.43177739108.43177516258.23177516258.23
Industrial Park Workshops
Production Line Renovation Project of
85354578.7817688178.7867666400.0085861185.3612518073.8473343111.52
Jiangxi Konka
Suining Konka Hongye Plant Decoration
84574481.8084574481.8076141438.8676141438.86
Project
Construction and Decoration Project of
Phase I of Dongguan Konka Science and 53096645.21 53096645.21
Technology Industrial Park
Other projects 333576197.93 33799544.33 299776653.60 376827989.20 42750899.13 334077090.07
Total 980917760.72 107875261.68 873042499.04 962923620.22 102024121.54 860899498.68
(2) Changes in major projects under construction in the current year
Name of item Beginning balance Increase in Decrease in the current year Ending balance
the current
year
230Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Transfer to Other
fixed assets decreases
Construction of Suining Electronic Industrial Park Workshops 177516258.23 222850.20 177739108.43
(Continued)
Of which:
Proportion
the amount Capitalization
Budget of the Accumulated
Engineering of the rate of the
amount (RMB project amount of Capital
Name of item Schedule capitalized interests in
ten thousand accumulative interest resources
(%) interests in the current
yuan) input in capitalization
the current year (%)
budget (%)
year
Construction of Suining Electronic Self-funded
76342.2295.0095.00
Industrial Park Workshops
(3) Provision set aside for impairment of construction in progress in the current year
Increase in the Decrease in the
Type Beginning balance Ending balance Reason for withdrawal
current year current year
Production Line Engineering Failure to achieve
12518073.845272847.63102742.6917688178.78
Renovation Project of Jiangxi Konka serviceable conditions
Jiangxi High Transparent Substrate Failure to achieve
85031242.7611727154.876575392.4090183005.23
Production Line Project serviceable conditions
231Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Increase in the Decrease in the
Type Beginning balance Ending balance Reason for withdrawal
current year current year
Other projects Failure to achieve
4474804.944470727.274077.67
serviceable conditions
Total 102024121.54 17000002.50 11148862.36 107875261.68 —
(4) Impairment test of construction in progress
In the current year the Company conducted impairment tests on the construction in progress of its subsidiaries Jiangxi Konka and Jiangxi High
Transparent Substrate determined their recoverable amounts based on the net fair value less disposal costs and recognized the impairment loss on assets of
RMB 5272847.63 in Jiangxi Konka and RMB 11727154.87 in Jiangxi High Transparent Substrate.Determination of
Recoverable Impairment
Item Book value fair value and Key parameters Basis for determining key parameters
amount amount
disposal costs
Economic depreciation rate = (1 - (capacity
Recoverable
Production of equipment expected to be utilized /
amount =
Line original design capacity of equipment) ^
replacement costs Economic
Renovation 72939247.63 67666400.00 5272847.63 economy of scale index) x 100%. Economy
x (1 - economic depreciation rate
Project of of scale index i.e. empirical data takes the
depreciation rate) -
Jiangxi Konka value of 0.7 for the processing industry in
disposal costs
general.Jiangxi High Recoverable Economic Economic depreciation rate = (1 - (capacity
223131254.87211404100.0011727154.87
Transparent amount = depreciation rate of equipment expected to be utilized /
232Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Determination of
Recoverable Impairment
Item Book value fair value and Key parameters Basis for determining key parameters
amount amount
disposal costs
Substrate replacement costs original design capacity of equipment) ^
Production x (1 - economic economy of scale index) x 100%. Economy
Line Project depreciation rate) - of scale index i.e. empirical data takes the
disposal costs value of 0.7 for the processing industry in
general.Total 296070502.50 279070500.00 17000002.50 — — —
233Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
17. Right-of-use assets
Properties and Machinery Electronic
Item Total
buildings equipment equipment
I. Original book value
1. Beginning balance 278099315.84 279350.52 278378666.36
2. Increase in the current
44246841.46428197.7150199.6344725238.80
year
(1) Rent 44246841.46 428197.71 50199.63 44725238.80
(2) Others
3. Decrease in the current
38354082.0738354082.07
year
(1) Decrease for loss of
controlling right
(2) Others 38354082.07 38354082.07
4. Ending balance 283992075.23 428197.71 329550.15 284749823.09
II. Accumulated
depreciation
1. Beginning balance 81209388.74 114854.45 81324243.19
2. Increase in the current
54942266.40171279.1166956.1455180501.65
year
(1) Provision 54942266.40 171279.11 66956.14 55180501.65
(2) Others
3. Decrease in the current
29940601.1029940601.10
year
(1) Decrease for loss of
controlling right
(2) Others 29940601.10 29940601.10
4. Ending balance 106211054.04 171279.11 181810.59 106564143.74
III. Provision for
impairment
1. Beginning balance
2. Increase in the current
year
(1) Provision
3. Decrease in the current
year
234Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Properties and Machinery Electronic
Item Total
buildings equipment equipment
(1) Disposal
4. Ending balance
IV. Book value
1. Ending book value 177781021.19 256918.60 147739.56 178185679.35
2. Beginning book value 196889927.10 164496.07 197054423.17
Remarks: the decrease in original value and other accumulated depreciation is mainly
due to termination of leases.
235Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
18. Intangible Assets
(1) List of intangible assets
Land use right Trademark Patent and know- Franchise Right to use
Item right how rights software and Total
others
I. Original book value
1. Beginning balance 886356061.91 72197456.33 116697625.44 187333182.47 177648647.63 1440232973.78
2. Increase in the current year 713445.26 5665697.04 5655673.06 12034815.36
(1) Purchase 25471.70 3792884.30 3818356.00
(2) Transfer-in of construction in
5640225.341862788.767503014.10
progress
(3) Other reasons 713445.26 713445.26
3. Decrease in the current year 69870962.82 4272655.65 21534714.34 95678332.81
(1) Disposal or write-off 62883643.45 4272655.65 21534714.34 88691013.44
(2) Other reasons 6987319.37 6987319.37
4. Ending balance 817198544.35 72197456.33 112424969.79 192998879.51 161769606.35 1356589456.33
II. Accumulated amortization
1. Beginning balance 96724173.74 23415626.44 71699652.31 11721315.62 103542668.71 307103436.82
2. Increase in the current year 23428735.13 3516.01 115651.51 10543841.88 19450468.22 53542212.75
(1) Provision 23187339.87 3516.01 115651.51 10543841.88 19405433.13 53255782.40
236Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Land use right Trademark Patent and know- Franchise Right to use
Item right how rights software and Total
others
(2) Others 241395.26 45035.09 286430.35
3. Decrease in the current year 12071987.30 4512655.65 21260597.67 37845240.62
(1) Disposal or write-off 12071987.30 4512655.65 21260597.67 37845240.62
4. Ending balance 108080921.57 23419142.45 67302648.17 22265157.50 101732539.26 322800408.95
III. Provision for impairment
1. Beginning balance 564705.88 44943521.62 235294.12 45743521.62
2. Increase in the current year
(1) Provision
3. Decrease in the current year
(1) Disposal
4. Ending balance 564705.88 44943521.62 235294.12 45743521.62
IV. Book value
1. Ending book value 709117622.78 48213608.00 178800.00 170733722.01 59801772.97 988045525.76
2. Beginning book value 789631888.17 48217124.01 54451.51 175611866.85 73870684.80 1087386015.34
Note 1: there was no impairment of the Group's intangible assets during the Reporting Period.Note 2: the reduction in disposal or scrapping of land use rights this year is mainly due to the land acquisition and storage matters of Frestec Electric
Appliances.
237Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
(2) Land use right with certificate of title uncompleted
The Group did not have land use rights for which no title deeds had been issued.
(3) Significant intangible assets
Remaining amortization
Item Ending book value
period (year)
Land use right of Dongguan
181763138.6744.67
Konka
Concessions of Yibin Konka 171122506.14 15.83
Land use right of Shanxi Konka
112085337.1546.58
Intelligent
Land use right of Frestec Smart
88337088.8445.75
Home
Total 553308070.80 —
(4) Intangible assets with restricted ownership or using right
Item Ending book value Reason for restriction
Land use right of Dongguan As collateral for loan
181763138.67
Konka
Land use right of Shanxi Konka As collateral for loan
112085337.15
Intelligent
Land use right of Frestec Smart As collateral for loan
88337088.84
Home
Land usage right of Frestec
61891079.20 As collateral for loan
Refrigeration
Land use right of Anhui Konka 52673556.00 As collateral for loan
Land use right of Chongqing As collateral for loan
43609197.23
Kangka
Land use right of Anhui As collateral for loan
16966292.48
Tongchuang
Land use right of Jiangsu Konka As collateral for loan
13276014.08
Smart
Land use right of XingDa As collateral for loan
12644372.96
HongYe
Land use right of Konka Group As collateral for loan
4105007.72
Guangming
Total 587351084.33
238Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
19. Goodwill
(1) Original book value of goodwill
Increase in the Decrease in the
current year current year
Beginning Formed Ending
Investee
balance through balance
Others Disposal Others
business
combinations
Jiangxi
340111933.01340111933.01
Konka
XingDa
44156682.2544156682.25
HongYe
Total 384268615.26 384268615.26
(2) Provision for goodwill impairment
Increase in the Decrease in the
Beginning Ending
Investee current year current year
balance balance
Provision Others Disposal Others
Jiangxi
340111933.01340111933.01
Konka
XingDa
21959947.1421959947.14
HongYe
Total 362071880.15 362071880.15
(3) Information on the asset group or the combination of asset groups of the
goodwill
Whether it is
Composition and basis of the asset group or consistent with
Description
combination of asset groups the previous
year
It is a group of assets related to goodwill
consisting of all operating tangible assets and
recognizable intangible assets of the
Asset group of
corresponding subsidiary's main business as Yes
XingDa HongYe
reflected in its balance sheet (excluding working
capital and non-operating assets) based on
whether or not the major cash inflows generated
239Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Whether it is
Composition and basis of the asset group or consistent with
Description
combination of asset groups the previous
year
by the asset group are independent of those
generated by other assets or the asset group
(4) Specific determination method for recoverable amount
The Company's management performed an impairment test of goodwill at the end of the
year and recognized XingDa HongYe as a whole as a single asset group which is consistent
with prior years.The Company uses the present value of estimated future cash flows to calculate the
recoverable amount of an asset group. Future cash flows are determined based on the
financial budgets approved by management for the years 2025 through 2029 and using a
discount rate of 12.62%. The cash flows of XingDa HongYe for more than 5 years are
calculated on the basis of a growth rate of 0%. The Company engaged an appraisal institution
Shenzhen Pengxin Asset Appraisal Land and Real Estate Appraisal Co. Ltd. to conduct an
appraisal of the asset group containing goodwill of Xingda Hongye by adopting the income
approach using the present value of the estimated future cash flows of the assets of the asset
group as its recoverable amount. The appraisal institution issued on April 11 2025 Asset
Appraisal Report on the Recoverable Amount of the Asset Group Containing Goodwill
Formed by the Merger and Acquisition of Guangdong Xingda Hongye Electronic Co. Ltd. in
Relation to the Goodwill Impairment Test to be Conducted by Konka Group Co. Ltd.(PXZPBZ [2025] No. S195) which takes December 31 2024 as the appraisal base date. The
present value of the asset group of Xingda Hongye as at the appraisal date amounted to RMB
231.98 million and the book value of the asset group adjusted to its fair value (including the
goodwill as a whole) was RMB 230.9636 million of which the book value of goodwill
(inclusive of minority shareholders) amounted to RMB 43.523 million. Therefore XingDa
HongYe had been tested for impairment of goodwill and no impairment of goodwill existed in
the current year. As of the reporting date Xingda Hongye had accumulated goodwill
impairment of approximately RMB 21.9599 million.
20. Long-term prepaid expense
Other
Beginning Increase in the Amortization in decreases in
Item Ending balance
balance current year the current year the current
year
Decoration 370388936.88 8433152.74 70259447.31 11708495.73 296854146.58
240Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Other
Beginning Increase in the Amortization in decreases in
Item Ending balance
balance current year the current year the current
year
expenses
Shoppe
24974475.3829805101.0924243165.3030536411.17
expense
Others 123555811.45 131171473.32 46419398.36 3517282.53 204790603.88
Total 518919223.71 169409727.15 140922010.97 15225778.26 532181161.63
21. Deferred tax assets/deferred tax liabilities
(1) Deferred tax assets that have not been offset
Ending balance Beginning balance
Deductible Deductible
Item
temporary Deferred tax asset temporary Deferred tax asset
differences differences
Deductible losses 4072599866.74 821192030.16 3747584829.70 794363411.92
Provision for asset
1711958350.44383396704.791879389407.11407751765.55
impairment
Deferred income 165698149.55 36951815.16 167691056.33 36766230.50
Accrued expenses 154175886.01 30405673.44 262522401.07 58732850.29
Unrealized internal sales
21418121.435354530.3655653196.6413913299.16
profits
Lease liabilities 190036774.82 46680049.35 207847769.62 50208319.90
Others 303824133.13 68258498.61 279982155.72 64838104.84
Total 6619711282.12 1392239301.87 6600670816.19 1426573982.16
(2) Deferred tax liabilities that have not been offset
Ending balance Beginning balance
Item Taxable temporary Deferred income Taxable temporary Deferred income
differences tax liabilities differences tax liabilities
Estimated added value of
assets not under the same 148603098.25 32684086.93 154693540.82 37285533.12
control
Prepaid interest 21809373.23 5452343.31 37541390.08 9385347.52
Accelerated depreciation 2198376.27 443840.17 3005493.04 608518.82
241Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Ending balance Beginning balance
Item Taxable temporary Deferred income Taxable temporary Deferred income
differences tax liabilities differences tax liabilities
of fixed assets
Financial assets measured
at fair value through 164553726.22 41138431.56 327802549.12 81950637.29
current profit or loss
Right-of-use assets 177009862.45 43672811.85 195220008.99 48074535.52
Others 57798900.95 9907661.66 47153970.40 7721593.00
Total 571973337.37 133299175.48 765416952.45 185026165.27
(3) Breakdown of unrecognized deferred tax assets
Item Ending balance Beginning balance
Deductible losses 5076924357.43 3693212186.74
Deductible temporary differences 4057061699.25 4173904666.60
Total 9133986056.68 7867116853.34
(4) Deductible losses of unrecognized deferred tax assets matured/will mature in the
following year
Year Ending balance Beginning balance
2024175414641.28
2025252950466.34464500932.68
2026313956730.12224104387.87
2027307074252.94110289035.04
2028710259863.04763196328.43
2029 and following years 3492683044.99 1955706861.44
Total 5076924357.43 3693212186.74
22. Other non-current assets
Ending balance
Provision
Item
Book balance for Book value
impairment
Prepayment for land-purchase 1029457502.92 1029457502.92
Prepayment for construction
119220467.55119220467.55
equipment and other long-term assets
242Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Ending balance
Provision
Item
Book balance for Book value
impairment
Total 1148677970.47 1148677970.47
(Continued)
Beginning balance
Provision
Item
Book balance for Book value
impairment
Prepayment for land-purchase 1029317896.04 1029317896.04
Prepayment for construction equipment
219010910.12219010910.12
and other long-term assets
Total 1248328806.16 1248328806.16
23. Assets with restricted ownership or use rights
End of the year
Item Type of
Book balance Book value Restriction details
restriction
Among them RMB
556608881.87 is
the margin deposit
which is pledged for
borrowing or issuing
bank acceptance
Time bills;
Monetary deposit RMB567478893.23
1332589771.281332589771.28
assets margins is a time deposit that
etc. is used as pledge for
loans and cannot be
withdrawn in
advance; RMB
208501996.18 is
restricted due to
other reasons.Accounts 1837337.71 1798852.71 Pladge Pladged loan
243Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
End of the year
Item Type of
Book balance Book value Restriction details
restriction
receivable
In pledge for the
Notes
15900000.00 15900000.00 Pledge issuance of bank
receivable
acceptance bill
Inventories 383413182.26 379790291.96 Mortgage As collateral for loan
Investment
790608780.11 712454010.27 Mortgage As collateral for loan
property
As collateral for
finance lease loan
Fixed
1832372199.20 1551889522.63 Mortgage and former
Assets
shareholder
guarantee
Mortgage and
Intangible mortgage
664764256.55 587351084.33 Mortgage
Assets borrowings under
finance lease
Total 5021485527.11 4581773533.18 — —
(Continued)
Beginning of the year
Item Type of
Book balance Book value Restriction details
restriction
Among them RMB 384011696.60 is the
margin deposit which is pledged for
Margins
borrowing or issuing bank acceptance
Monetary pledges
831575227.47 831575227.47 bills; RMB 226611500.00 is a time
assets time
deposit that cannot be withdrawn in
deposits
advance; RMB 220952030.87 was
restricted due to other reasons.Accounts
2527314.22 2474071.67 Pledge In pledge for loan
receivable
Notes In pledge for the issuance of bank
209288446.67 209288446.67 Pledge
receivable acceptance bill
Inventories 601395411.05 599475045.44 Seizure Affected by the minor shareholder case of
244Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Beginning of the year
Item Type of
Book balance Book value Restriction details
restriction
mortgage the subsidiary the book value of the
seized inventory was RMB
49679547.48 and the company did not
waive its claim;
The ending book value of inventories
used for mortgage borrowings was RMB
549795497.96.
Investment
634578011.63 585984804.04 Mortgage As collateral for loan
property
As collateral for finance lease loan and
Fixed Assets 2003558346.93 1689602310.18 Mortgage
former shareholder guarantee
Intangible As collateral for finance lease loan and
687667571.97 620594057.60 Mortgage
Assets former shareholder guarantee
Construction
40629663.23 40629663.23 Mortgage As collateral for loan
in progress
Total 5011219993.17 4579623626.30 — —
24. Short-term borrowings
(1) Classification of short-term borrowings
Type of borrowings Ending balance Beginning balance
Credit loan 4709049751.78 4741431032.21
Guaranteed loan 629950527.05 1374378896.71
Mortgage loan 402171189.43 274782127.35
Total 5741171468.26 6390592056.27
(2) Outstanding Short-term borrowings overdue
There were no outstanding short-term borrowings overdue at the end of the current year.
25. Notes payable
Type of note Ending balance Beginning balance
Bank acceptance bills 850916858.18 786833882.36
Trade Acceptance 299393998.52 203649044.84
Total 1150310856.70 990482927.20
245Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Remarks: There were no notes payable that were due but unpaid at the end of the current
year.
26. Accounts payable
(1) List of accounts payable
Item Ending balance Beginning balance
Within 1 year 2295798887.75 2002263324.19
1-2 years 194600008.24 448060250.16
Two to three years 101677548.46 107371417.74
Over 3 years 182539343.79 169136683.88
Total 2774615788.24 2726831675.97
(2) Significant accounts payable with aging over 1 year or overdue
Reason for non-repayment or
Unit Ending balance
carry-over
A company 51419595.21 Unsettled
B company 35620358.59 Unsettled
C company 30327400.00 In litigation
D company 10600000.00 Unsettled
Total 127967353.80 —
27. Other payables
Item Ending balance Beginning balance
Interest payable
Dividends payable
Other payables 1676154887.59 1922791905.14
Total 1676154887.59 1922791905.14
(1) Other accounts payable presented based on the fund nature
Nature of fund Ending balance Beginning balance
Trading funds 489457474.93 798553216.65
Expenses payable 539342363.22 521810773.58
Related party borrowing 221405227.76 236064633.74
Cash deposit and front 283501144.00 282035338.52
Advance payment 7758315.35 5480880.33
Equity payable 24302796.96 24302796.96
246Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Nature of fund Ending balance Beginning balance
Others 110387565.37 54544265.36
Total 1676154887.59 1922791905.14
(2) Significant other accounts payable with an age of more than one year or overdue
Reason for non-
Unit Ending balance
repayment or carry-over
Outstanding principal and
E company 195755182.15 interest of the loan that has
not yet matured
F company 30000000.00 Performance bond
Outstanding principal and
G company 19758860.03 interest of the loan that has
not yet matured
Total 245514042.18 —
28. Advances from customers
Type Ending balance Beginning balance
Rents 3481262.87
Total 3481262.87
29. Contract liabilities
(1) Contract liabilities
Item Ending balance Beginning balance
Sales advances received 623555669.97 527975160.12
Total 623555669.97 527975160.12
Remarks: Contract liabilities over one year are detailed in "VI.41. Other non-current
liabilities" in this note.
(2) Significant contract liabilities with an age of more than one year
There were no significant contract liabilities with an age of more than one year in the
current year.
(3) Significant changes in book value in the current year
There were no significant changes in book value in the current year.
30. Employee benefits payable
247Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
(1) List of payrolls payable
Beginning Increase in the Decrease in the
Item Ending balance
balance current year current year
Short-term remuneration 302906283.43 1355059472.22 1420728747.43 237237008.22
Post-employment
benefits-defined 984500.20 120950933.23 120902660.82 1032772.61
contribution plans
Dismissal benefits 842320.00 23558600.62 18938851.67 5462068.95
Total 304733103.63 1499569006.07 1560570259.92 243731849.78
(2) Short-term remuneration
Beginning Increase in the Decrease in the
Item Ending balance
balance current year current year
Salaries bonuses
292819254.321182531300.651244619308.09230731246.88
allowances and subsidies
Employee benefits 5354332.27 52364964.09 54384350.21 3334946.15
Social insurance
564961.7552232243.5752263649.61533555.71
premiums
Including: Medical
396722.2146268656.1846277750.55387627.84
insurance premiums
Work injury insurance
77112.944100100.664099573.4577640.15
premiums
Maternity insurance
91126.601863486.731886325.6168287.72
premiums
Housing fund 486011.97 50089093.92 50067478.24 507627.65
Labour union funds and
3681723.1211105444.5413224037.481563130.18
education funds
Others 6736425.45 6169923.80 566501.65
Total 302906283.43 1355059472.22 1420728747.43 237237008.22
(3) Defined contribution plans
Beginning Increase in the Decrease in the
Item Ending balance
balance current year current year
Basic endowment
835465.17115977654.93115908631.67904488.43
management insurance
Unemployment
149035.034973278.304994029.15128284.18
insurance premiums
248Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Beginning Increase in the Decrease in the
Item Ending balance
balance current year current year
Total 984500.20 120950933.23 120902660.82 1032772.61
31. Taxes payable
Item Ending balance Beginning balance
Enterprise income tax 46039928.61 91733192.66
VAT 18304436.27 66607505.30
Property tax 11724042.19 5219025.56
Stamp duty 8598131.85 6782263.86
Land use tax 3640999.21 11704493.10
Personal income tax 2590216.18 2285063.65
Tariff 1584862.54 1513377.11
City construction and maintenance tax 455815.56 3479642.26
Education fees and local education Surcharge 384461.10 2525463.27
Fund for disposing abandoned appliances and
21210465.50
electronic products
Others 1289817.07 1356643.60
Total 94612710.58 214417135.87
32. Current portion of non-current liabilities
Item Ending balance Beginning balance
Long-term borrowings due within one year 4099941220.89 2891407222.55
Bonds payable due within one year 2510473199.20 2370572421.45
Long-term payables due within one year 452824.05 141650.44
Lease liabilities due within one year 44667151.05 52026101.92
Total 6655534395.19 5314147396.36
33. Other current liabilities
Item Ending balance Beginning balance
Tax to be charged off 39793570.78 23890662.41
Refunds payable 17262340.52 18915977.41
Accounts payable paid by endorsement of
outstanding notes at the end of the Reporting 12820620.61 11524075.93
Period
Total 69876531.91 54330715.75
249Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
34. Long-term borrowing
Type of borrowings Ending balance Beginning balance
Guaranteed loan 3426786189.06 4047706381.39
Credit loan 2407276815.65 3276240462.52
Entrusted borrowings 2125382964.61 2054850296.35
Mortgage loan 1271960335.66 1207161686.81
Pledged loan 399184717.84 84598475.36
Less: portion due within one
year (see Note VI. 32 for 4099941220.89 2891407222.55
details)
Total 5530649801.93 7779150079.88
35. Bonds payable
(1) List of Bonds Payable
Item Ending balance Beginning balance
Corporate bonds 4805666700.25 4797565000.12
Less: bonds payable due within
one year (see Note VI. 32 for 2510473199.20 2370572421.45
details)
Total 2295193501.05 2426992578.67
250Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
(2) Changes in bonds payable
Coupon Bond Issuance in the Accrue interest Amortization of Prepayment in the Default
Name Total par value Issue date Issue amount Beginning balance Ending balance
rate maturity current year by par value premium/discount current year status
21 Konka 01
1000000000.00 4.46% 2021/1/8 3 years 996500000.00 1043732777.88 867222.14 1044600000.02 No
(note * )
21 Konka 02
500000000.00 4.00% 2021/5/21 3 years 498250000.00 512094339.67 7722222.16 183438.12 519999999.95 No
(note * )
21 Konka 03
800000000.00 3.95% 2021/7/9 3 years 797200000.00 814745303.93 16414444.50 440251.60 831600000.03 No
(note * )
22 Konka 01
1200000000.00 3.23% 2022/7/14 3 years 1195800000.00 1217398867.91 38760000.00 1320754.71 38760000.00 1218719622.62 No
(note * )
22 Konka 03
600000000.00 3.30% 2022/9/8 3 years 597900000.00 605499371.09 19800000.00 660377.40 19800000.00 606159748.49 No
(note * )
22 Konka 05
600000000.00 3.50% 2022/10/18 3 years 597900000.00 604094339.64 21000000.00 660377.40 21000000.00 604754717.04 No
(note * )
24 Konka 01
1500000000.00 4.00% 2024/1/29 3 years 1495200000.00 1495200000.00 55500000.00 1752830.14 1552452830.14 No
(Note* )
24 Konka 02
400000000.00 4.00% 2024/3/18 3 years 398720000.00 398720000.00 12622222.19 400335.46 411742557.65 No
(Note* )
24 Konka 03
400000000.00 4.03% 2024/3/18 3 years 398720000.00 398720000.00 12716888.86 400335.45 411837224.31 No
(note * )
Total 7000000000.00 — — — 6976190000.00 4797565000.12 2292640000.00 185402999.85 5818700.28 2475760000.00 4805666700.25 —
251Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Remark * : On January 8 2021 the Company issued RMB1 billion of private placement corporate bonds with the duration of three years the annual
interest rate of 4.46% and the due date of January 8 2024.Remark * : On May 21 2021 the Company issued RMB500 million of private placement corporate bonds with the duration of three years the annual
interest rate of 4.00% and the due date of May 21 2024.Remark * : On July 9 2021 the Company issued RMB800 million of private placement corporate bonds with the duration of three years the annual
interest rate of 3.95% and the due date of July 9 2024.Note* : On July 14 2022 the Company issued RMB1.2 billion of public placement corporate bonds with the duration of three years the annual interest
rate of 3.23% and the due date of July 14 2025.Note* : On September 8 2022 the Company issued RMB600 million of private placement corporate bonds with the duration of three years the annual
interest rate of 3.30% and the due date of September 8 2025.Note * : On October 18 2022 the Company issued RMB600 million of private placement corporate bonds with the duration of three years the annual
interest rate of 3.50% and the due date of October 18 2025.Note* : On January 29 2024 the Company issued RMB 1.5 billion of private placement corporate bonds with the duration of three years (at the end of
the second year the issuer has the option to adjust the coupon rate and the investor put option) the annual interest rate of 4.00% and the due date of January
292027.
Note* : On March 18 2024 the Company issued RMB 400 million of private placement corporate bonds with the duration of three years (at the end of
the second year the issuer has the option to adjust the coupon rate and the investor put option) the annual interest rate of 4.00% and the due date of March 18
2027.
Note * : On March 18 2024 the Company issued RMB 400 million of private placement corporate bonds with the duration of three years the annual
interest rate of 4.03% and the due date of March 18 2027.
252Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
36. Lease liabilities
Item Ending balance Beginning balance
Lease liabilities 191228739.57 212244920.84
Less: Lease liabilities due within one year
44667151.0552026101.92
(see Note VI.32)
Total 146561588.52 160218818.92
37. Long-term payables
Item Ending balance Beginning balance
Accrued finance lease outlay 6314362.65 6823209.13
Less: Unrecognized financing expenses 356990.36 545824.62
Amount above due within one year (see Note
452824.05141650.44
VI.32)
Total 5504548.24 6135734.07
38. Long-term employee benefits payable
Item Ending balance Beginning balance
Termination benefits-net liabilities of
4608659.474718466.37
defined contribution plans
Total 4608659.47 4718466.37
39. Estimated Liabilities
Item Ending balance Beginning balance Forming reason
Compensation for
performance and
346222251.09200942606.09
contingent
consideration
Product quality After-sales of
80603137.10101726574.07
assurance household appliances
Pending litigation 206591.51 206591.51
Discard expenses 1401752.49 1644068.13
Total 428433732.19 304519839.80 —
40. Deferred income
(1) Category of deferred income
253Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Increase in Decrease in
Beginning Ending Forming
Item the current the current
balance balance reason
year year
Government Related to
425135237.9024456000.0056154230.53393437007.37
grants assets/income
Total 425135237.90 24456000.00 56154230.53 393437007.37 —
254Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
(2) Government subsidy items
Amount
Amount Amount
of cost
Subsidies recognized as recognized as
Government Beginning offset in Related to
increased in the non-operating other income in Other changes Ending balance
subsidy items balance the assets/income
current year revenue in the the current
current
current year year
year
Plant construction
subsidy for Yibin Related to
103545436.452319532.32101225904.13
Konka Industrial assets
Park
Rewards and
subsidies for
Special Project for
Supporting the
Development of
Related to
Advanced 32690000.00 1179671.78 31510328.22
assets
Manufacturing and
Modern Service
Industry of Henan
Frestec Smart
Home
255Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Amount
Amount Amount
of cost
Subsidies recognized as recognized as
Government Beginning offset in Related to
increased in the non-operating other income in Other changes Ending balance
subsidy items balance the assets/income
current year revenue in the the current
current
current year year
year
Medical waste
centralized
Related to
treatment project in 29150950.10 1720165.49 27430784.61
assets
Gaoxian County
Yibin City
Headquarters 8K
device-side R&D Related to
22424922.403000000.001470181.9823954740.42
project of Konka assets
Group
Industrial support
Related to
funds for Suining 20000000.00 223451.46 19776548.54
assets
Kangka
Industry rewards
and subsidies of Related to
13554960.356610000.00430027.4019734932.95
Henan Frestec assets
Smart Home
256Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Amount
Amount Amount
of cost
Subsidies recognized as recognized as
Government Beginning offset in Related to
increased in the non-operating other income in Other changes Ending balance
subsidy items balance the assets/income
current year revenue in the the current
current
current year year
year
Returned payments
Related to
for land by 17934545.55 392727.24 17541818.31
assets
Chongqing Konka
Equipment subsidy
for Konka Xinyun Related to
9696681.53899350.088797331.45
Semiconductor assets
(Yancheng)
Plant decoration
subsidy for Yibin Related to
10074508.361439215.448635292.92
Konka Industrial assets
Park
Other government
Related to
subsidies related to 166063233.16 14846000.00 32079907.34 -14000000.00 134829325.82
assets/income
assets/income
Total 425135237.90 24456000.00 42154230.53 -14000000.00 393437007.37
257Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
41. Other non-current liabilities
Item Ending balance Beginning balance
Contract liabilities over one year 207378781.21 179996351.33
Total 207378781.21 179996351.33
42. Share capital
Increase/decrease (+/-) in the current year
Shares as
Shares as
dividend
dividend
Item Beginning balance New converted Ending balance
converted Others Subtotal
issues from
from
capital
profit
reserves
Total
2407945408.002407945408.00
shares
43. Capital reserves
Beginning Increase in the Decrease in the Ending
Item
balance current year current year balance
Other capital
526499506.7611455341.4625114272.49512840575.73
reserves
Total 526499506.76 11455341.46 25114272.49 512840575.73
Remarks: Capital reserves for the current year - other capital reserves increased and
decreased due to the following reasons:
* The equity incentives of the associate Hefei KONSEMI Storage Technology Co. Ltd.resulted in an increase in other capital reserves of RMB 11154147.97.* The equity incentives of the associate Chongqing E2info Technology Co. Ltd.resulted in an increase in other capital reserves of RMB 301193.49;
* The subsidiary Shenzhen Konka Semiconductor transferred 13% equity of the
associate Hefei KONSEMI Storage Technology Co. Ltd. and carried forward the amount
originally recorded in capital reserves resulting in a decrease of RMB 23472470.81 in other
capital reserves;
* The repurchase of shares and equity incentives by the associate Wuhan Tianyuan
Environmental Protection Co. Ltd. led to a decrease of RMB 1641801.68 in other capital
reserves.
258Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
44. Other comprehensive income
Amount incurred in the current year
Less: Amount
Less: Amount recognized as
recognized as other
Amount other comprehensiv
incurred before comprehensive e income in Less: Attributable Attributable to
Beginning Ending
Item income tax in income in the the previous Income to the parent minority
balance balance
the current previous period period and tax company after shareholders
year and transferred transferred to expense tax after tax
to profit or loss retained
in the Reporting earnings in
Period the Reporting
Period
I. Other comprehensive
income that cannot be -6398878.20 -6398878.20
reclassified as profits or losses
Including: changes in fair
value of other equity -6398878.20 -6398878.20
instrument investments
II. Other comprehensive
-7044680.24-4247575.57-2116697.574403268.12-6534146.12-2641412.12
income reclassified as profits
259Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Amount incurred in the current year
Less: Amount
Less: Amount recognized as
recognized as other
Amount other comprehensiv
incurred before comprehensive e income in Less: Attributable Attributable to
Beginning Ending
Item income tax in income in the the previous Income to the parent minority
balance balance
the current previous period period and tax company after shareholders
year and transferred transferred to expense tax after tax
to profit or loss retained
in the Reporting earnings in
Period the Reporting
Period
and losses
Including: Other
comprehensive income that
-4115978.90-193264.69-2116697.571923432.88-2192546.02
can be transferred to profits or
losses under the equity method
Exchange difference on
-2928701.34-4054310.882479835.24-6534146.12-448866.10
translating foreign operations
Total of other -
-4247575.57-2116697.574403268.12-6534146.12-9040290.32
comprehensive income 13443558.44
260Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
45. Specific reserve
Decrease in
Beginning Increase in the
Item the current Ending balance
balance current year
year
Safety production
4657488.247881927.491289737.2011249678.53
fund
Total 4657488.24 7881927.49 1289737.20 11249678.53
46. Surplus reserves
Increase in Decrease in
Beginning
Item the current the current Ending balance
balance
year year
Statutory surplus
1005961774.191005961774.19
reserves
Discretionary
238218590.05238218590.05
surplus reserves
Total 1244180364.24 1244180364.24
47. Retained earnings
Item The current year Last year
Undistributed profit at the end of last year
1474561975.853637291770.33
before adjustment
Adjustment to total undistributed profits at the
beginning of the year (+ for increase and - for 1060258.69
decrease)
Including: change to accounting policies 1060258.69
Adjusted undistributed profit at the beginning
1474561975.853638352029.02
of the year
Add: Net profit attributable to owners of the
-3295588668.77-2163790053.17
parent company in the current year
Others 23519794.84
Less: Appropriation of statutory surplus
reserves
Ending balance of the current year -1797506898.08 1474561975.85
Remarks: other changes in undistributed profits in the current year are due to the gains
from derecognition of other equity instrument investments.
261Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
48. Operating revenue and cost of sales
(1) Operating revenue and cost of sales
Amount incurred in the current year Amount incurred last year
Item
Income Cost Income Cost
Principal
10417600703.1110070419957.3516951243781.7416577542836.11
activity
Other 697163266.48 555615226.55 898087647.50 751548616.36
Total 11114763969.59 10626035183.90 17849331429.24 17329091452.47
(2) Information on the breakdown of operating revenue and cost of sales
Category of Amount incurred in the current
Amount incurred last year
contracts year
Operating Operating
Cost of sales Cost of sales
revenue revenue
Business type
Including:
colour TV 5027758205.02 5002954699.48 4708450488.99 4814813410.02
business
White goods 4127243310.93 3837066870.14 4257423386.71 3910767599.72
PCB business 480868974.92 428530129.53 476456155.62 420480569.60
Memory chip
trading and 170202408.61 256853882.82 3397161542.60 3433148164.76
semiconductor
Other 1308691070.11 1100629601.93 5009839855.32 4749881708.37
Total 11114763969.59 10626035183.90 17849331429.24 17329091452.47
Classified by
operating region
Of which:
7903700862.497500439150.6710716944822.0010462602919.38
Domestic
Overseas 3211063107.10 3125596033.23 7132386607.24 6866488533.09
Total 11114763969.59 10626035183.90 17849331429.24 17329091452.47
(3) Information in relation to the trade price apportioned to the residual contract
performance obligation
At the end of the current year the revenue corresponding to the performance obligation
that has been signed but not yet performed or not yet fully performed was RMB
262Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
1009604741.97 of which RMB 925536196.45 was expected to be recognized as revenue
in 2025 RMB 26843515.78 recognized as revenue in 2026 and RMB 57225029.74
recognized as revenue in 2027 and later years.
49. Taxes and surcharges
Amount incurred in Amount incurred last
Item
the current year year
Property tax 46155747.46 31766475.03
Stamp duty 39993676.00 34773519.65
Land use tax 24048724.05 20537445.82
Urban maintenance and construction tax 8067589.84 9421882.52
Education surcharge 3697149.73 4271078.25
Local education surcharge 2464766.48 2847868.04
Water resources fund 925768.34 935650.62
Others 603913.09 934120.54
Total 125957334.99 105488040.47
50. Selling expense
Amount incurred in Amount incurred last
Item
the current year year
Employee Compensation 346592018.83 356377425.69
Promotional activities 142882509.25 144332006.20
Advertising expense 107677304.60 233506458.32
Logistic Fee 69134847.32 78886050.69
Travel expenses 21923991.20 21297750.22
Insurance Premiums 10893622.99 18399706.24
Market service fee 10848646.14 12709977.35
Lease expense 9587524.14 12330023.91
Entertainment fees 9163301.49 12054482.82
Others 45594270.91 75176265.55
Total 774298036.87 965070146.99
Remarks: According to the Interpretation of the Accounting Standards for Business
Enterprises No.18 the Group changes the presentation of guarantee-type quality assurance
from in "selling expenses" to in "cost of sales" and retrospectively adjusts the comparative
data of financial statements accordingly.
263Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
51. Administrative expense
Amount incurred in Amount incurred last
Item
the current year year
Employee Compensation 314459207.37 442241850.70
Depreciation charges 215615082.76 221920806.29
Intermediary fees 37100613.46 27526556.25
Water and electricity expenses 12036310.67 9399817.49
Travel expenses 7023438.59 11896505.16
Loss on scraping of inventories 3905406.48 2768674.29
Others 61807774.13 91773700.02
Total 651947833.46 807527910.20
52. R&D expense
Amount incurred in Amount incurred last
Item
the current year year
Salary 226287518.69 271425739.22
Depreciation and amortization charge 105315963.39 109324146.88
New product trial production expense 20011198.25 37107469.57
Material expense 18169936.41 29602114.38
Commission service fee 1242563.23 4452755.80
Testing expense 3315736.07 5899826.42
Others 42062924.30 40181707.59
Total 416405840.34 497993759.86
53. Finance costs
Amount incurred in Amount incurred last
Item
the current year year
Interest expense 819234748.93 884535066.01
Less: Interest income 215619251.81 286969209.86
Add: Exchange loss -51329032.40 -72904637.81
Other expenses 28736033.40 37354891.90
Total 581022498.12 562016110.24
54. Other income
264Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Amount incurred in Amount incurred last
Resources
the current year year
Transfer of deferred income 42154230.53 49036136.15
Rewards and subsidies 34231995.98 59087470.50
Support funds 14923388.00 147251929.00
Reduction or exemption of tax 10191356.70 3596246.55
Tax rebates on software 4681629.92 5819853.78
Post subsidies 1895971.87 3523345.06
Subsidies for L/C exports 1250714.67 2231210.76
Others 1271022.45 71840.14
Total 110600310.12 270618031.94
55. Income from changes in the fair value
Sources of income from changes in the Amount incurred in Amount incurred last
fair value the current year year
Financial assets measured at fair value
-267484270.45-16629916.60
through current profit or loss
Estimated contingent consideration -95523883.70 -81307994.29
Total -363008154.15 -97937910.89
56. Return on investment
Amount incurred
Amount incurred
Item in the current
last year
year
Returns on long-term equity investments
-134541620.49-170413352.22
calculated by the equity method
Return on investment arising from the disposal of
101946531.33195999095.98
long-term equity investments
Investment income from financial assets held for
4240444.629383976.00
trading during the holding period
Investment income from disposal of financial
assets measured at fair value through current -26511417.25 -38708152.12
profit or loss
Interest income from debt investments during the
19239106.2156292758.87
holding period
Income from the derecognition of financial assets
-4519585.64-3132035.83
at amortized cost (“-” for loss)
265Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Amount incurred
Amount incurred
Item in the current
last year
year
Gains from debt restructuring -459737.22 -832158.49
Conversion of long-term equity investments
accounted for by the equity method to financial 574780174.75
assets
Gains from remeasurement of residual stock
51474909.15
rights at fair value after losing control power
Investment income arising from the disposal of
560005.44
other equity instruments investments
Total -40606278.44 675405221.53
57. Credit impairment loss
Amount incurred
Amount incurred
Item in the current
last year
year
Bad debt loss of notes receivable -130021.70 6971440.21
Bad debt loss of accounts receivable -138481001.25 -209233746.63
Bad debt loss of other accounts receivable -280100956.11 -254340694.42
Total -418711979.06 -456603000.84
58. Impairment losses on assets
Amount incurred
Amount incurred
Item in the current
last year
year
Inventory depreciation loss and contract
-445305312.35-371733599.86
performance cost impairment loss
Impairment loss of long-term equity investments -443125661.12 -106783838.90
Impairment loss of construction in progress -17000002.50 -41422211.82
Impairment loss on fixed assets -20834518.11 -40607700.40
Contractual asset impairment loss -191314.13 -45614.41
Total -926456808.21 -560592965.39
59. Income from asset disposal
266Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Amount incurred
Amount incurred
Item in the current
last year
year
Gains on disposal of non-current assets 13572230.63 54321.20
Including: gains on disposal of non-current
13572230.6354321.20
assets not classified as held-for-sale assets
Including: Gains on fixed assets disposal 12323105.39 -8803043.13
Gains on Intangible assets disposal 660377.36 8559461.64
Gains on disposal of construction in
-321592.91
progress
Gains and losses on disposal of right-of-
537251.48619495.60
use assets
Others 51496.40
Total 13572230.63 54321.20
60. Non-operating revenue
Amount recorded
Amount incurred into the non-
Amount incurred
Item in the current recurring profit or
last year
year loss of the current
year
Write-off of current
12321231.5912652519.6212321231.59
accounts
Income from compensation
fines and liquidated 19309630.18 6981587.26 19309630.18
damages
Non-current assets damage
7381.7715390.137381.77
and retirement gains
Others 4863863.75 6613575.48 4863863.75
Total 36502107.29 26263072.49 36502107.29
61. Non-operating expense
Amount recorded
into the non-
Amount of the Amount of last
Item recurring profit or
current year year
loss of the current
year
267Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Performance compensation 69755761.30 74344977.85 69755761.30
Losses on damage and
scraping of non-current 14433649.96 4072756.52 14433649.96
assets
Compensation expense 5087299.42 3945526.50 5087299.42
Others 76298404.02 74322594.16 76298404.02
Total 165575114.70 156685855.03 165575114.70
62. Income tax expense
(1) Income tax expense
Amount incurred
Amount incurred
Item in the current
last year
year
Income tax expense in the current year 86944638.50 58328317.21
Deferred income tax expense -17392309.50 -139776731.85
Total 69552329.00 -81448414.64
(2) Adjustment process of accounting profits and income tax expenses
Amount incurred in
Item
the current year
Total consolidated profit in the current year -3814586444.61
Income tax expense calculated at legal/applicable tax rate -953646611.15
Impact of different tax rates applied by subsidiaries 71049449.05
Impact of income tax in the periods before adjustment 42435463.58
Impact of non-taxable income 49497251.06
Impacts of non-deductible costs expenses and losses 49728811.50
Impact of using deductible losses on the deferred tax assets not
60604552.12
recognized previously
Impact of deductible temporary differences or deductible losses of
705722562.46
deferred tax assets not recognized in the current year
Changes in the balance of deferred tax assets/liabilities in previous
period due to adjustment of tax rate
Others 44160850.38
Income tax expense 69552329.00
63. Other comprehensive income
268Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
For details please refer to "Note VI.44 Other comprehensive income".
64. Items in the cash flow statement
(1) Cash related to operating activities
1) Other cash received related to operating activities
Amount incurred in Amount incurred
Item
the current year last year
Front money and guarantee deposit 123926037.77 392830280.36
Trading funds 99175088.89 159741742.98
Income from government grants 91084949.55 362725223.50
Interest income from bank deposits 66117530.26 116327870.24
Compensation and penalty income 20552157.49 20504317.63
Others 63901195.67 39760244.28
Total 464756959.63 1091889678.99
2) Other cash paid related to operating activities
Amount incurred in Amount incurred
Item
the current year last year
Cash payment fee 803310338.17 898328046.30
Deposit and margin 120837849.81 230032945.74
Expense for bank handling charges 4474661.97 4874263.89
Payment made on behalf 397101.66 6916151.52
Others 72308452.14 165832467.23
Total 1001328403.75 1305983874.68
(2) Cash related to investment activities
1) Other cash received related to investing activities
Amount incurred in Amount incurred
Item
the current year last year
Recovery of loan at call 10535206.45 473934626.67
Others 176130622.69 209995119.36
Total 186665829.14 683929746.03
2) Other cash paid related to investing activities
Amount incurred in Amount incurred
Item
the current year last year
269Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Amount incurred in Amount incurred
Item
the current year last year
Payment of loan at call 100000000.00 310116949.03
Cash paid for disposal of subsidiaries 840192.20
Others 34327401.00 218616095.75
Total 134327401.00 529573236.98
(3) Cash related to financing activities
1) Other cash received related to financing activities
Amount incurred in Amount incurred
Item
the current year last year
Recovery of margin deposit pledged 898936642.13 570834983.98
Receiving loan at call 167370200.00
Total 898936642.13 738205183.98
2) Other cash paid related to financing activities
Amount incurred in Amount incurred
Item
the current year last year
Deposit as margin for pledge 1608682236.20 773184328.31
Cash paid for leases 29886200.09 145535542.98
Financing cost 26001127.56 32222659.12
Retuning loan at call 18099962.83 79183194.53
Others 4300049.48 6192899.46
Total 1686969576.16 1036318624.40
270Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
3) Changes in liabilities arising from financing activities
Increase in the current year Decrease in the current year
Item Beginning balance Non-cash Non-cash Ending balance
Cash changes Cash changes
Change Change
Current portion of
non-current 5314147396.36 6654172818.72 5290623131.15 22162688.74 6655534395.19
liabilities
Short-term
6390592056.276495079934.39185383690.047329570740.18313472.265741171468.26
borrowings
Long-term
7779150079.882793544423.90365775223.871312469004.194095350921.535530649801.93
borrowing
Bonds payable 2426992578.67 2292640000.00 185359603.62 104563888.80 2505234792.44 2295193501.05
Lease liabilities 160218818.92 39259646.80 2445783.73 50471093.47 146561588.52
Long-term payables 6135734.07 1517224.45 1491994.45 656415.83 5504548.24
Total 22077236664.17 11581264358.29 7431468207.50 14041164542.50 6674189384.27 20374615303.19
271Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
(4) Notes to the presentation of cash flows on a net basis
No cash flows were presented on a net basis in the current year.
(5) Significant activities and financial effects that do not involve current cash
receipts and payments but affect the financial position of the enterprise or may affect
the enterprise's cash flows in the future
Amount incurred in the current
Item
year
Payment for materials made by endorsement of notes
1452294715.15
receivable
Acquisition of long-term assets by endorsement of
105135400.35
notes receivable
Other payments made by endorsement of notes
196982236.56
receivable
Total 1754412352.06
65. Supplementary data on the statements of cash flows
(1) Supplementary data on the statements of cash flows
Amount of the Amount of last
Item
current year year
1. Reconciliation of net profit to cash flows
——
from operating activities:
Net profit -3884138773.61 -2635886661.34
Add: Provision for asset impairment 926456808.21 560592965.39
Credit impairment loss 418711979.06 456603000.84
Depreciation of fixed assets and investment
460489835.67450848329.23
property
Depreciation of right-of-use assets 55180501.65 42868891.40
Amortization of intangible assets 53255782.40 47675317.23
Amortization of long-term prepaid expense 140922010.97 127376763.41
Losses on disposal of fixed assets
intangible assets and other long-lived -13572230.63 -54321.20
assets (" " indicates income)
Losses on scrap of fixed assets (" " indicates
14426268.1965989435.90
income)
Losses on changes in fair value (" " indicates
363008154.1597937910.89
income)
272Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Amount of the Amount of last
Item
current year year
Finance costs (" " indicates income) 750700141.18 723081917.40
Investment loss (" " indicates income) 40606278.44 -675405221.53
Decrease in deferred tax assets ("-" for
34334680.29-229384248.41
increase)
Increase in deferred income tax liabilities (" "
-51726989.7989598866.96
indicates decrease)
Decrease in inventories (" " indicates increase) -123830950.55 772941542.37
Decrease in accounts receivable generated
574731714.03879334900.88
from operating activities (" " indicates increase)
Increase in accounts payable used in operating
456487863.86-171981975.37
activities (" " indicates decrease)
Others -42154230.53 -49036136.15
Net cash generated from/used in operating
173888842.99553101277.90
activities
2. Significant investment and financing
activities not involving cash
Conversion of liabilities into capital
Convertible corporate bonds due within one
year
Fixed assets acquired under finance leases
3. Net changes in cash and cash equivalents:
Balance of cash at the end of the year 2783177476.45 5674784349.55
Less: Beginning balance of cash 5674784349.55 5461912010.90
Add: Ending balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase in cash and cash equivalents -2891606873.10 212872338.65
(2) Supplier finance arrangement
* Terms and conditions of supplier financing arrangements
The Group has signed agreements with banks and financial institutions and qualified
suppliers recognized by the Group may transfer their accounts receivable from the Group to the
bank. When the payable amount is due the Group shall fulfill its unconditional payment
obligation.* Presented items and related information in the balance sheet (unit: RMB 10000)
273Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Presented item Ending balance
Accounts payable 219.31
Including: accounts received by suppliers 219.31
Total 219.31
* Range of payment due dates
Presented item Range of due dates
Liabilities under this arrangement 360-365 days from the date of issuance
Comparable accounts payable that do not belong -
to this arrangement
* Changes in the current period that do not involve cash inflows and outflows
There is no impact of corporate mergers or exchange rate fluctuations on the above-
mentioned financial liability changes of the Company.
(3) Net cash paid for the acquisition of subsidiaries in the current year
Net cash was paid for the acquisition of subsidiaries in the current year.
(4) Net cash received for the disposal of subsidiaries in the current year
There was no net cash received from disposal of subsidiaries in the current year.
(5) Composition of cash and cash equivalents
Item Ending balance Beginning balance
Cash 2783177476.45 5674784349.55
Including: Cash on hand 208.19 469.28
Bank deposits available for payment at
2779974224.235672034875.67
any time
Other monetary funds available for
3203044.032749004.60
payment at any time
Balance of cash and cash equivalents at the
2783177476.455674784349.55
end of the year
(6) Presentation of cash and cash equivalents with restricted use
Reasons for classifying
Amount of the Amount of last
Item the funds as cash and
current year year
cash equivalents
Project loan The proceeds can be used
38316138.972554356.19
proceeds at any time to make
274Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Reasons for classifying
Amount of the Amount of last
Item the funds as cash and
current year year
cash equivalents
payments and such
payments can only be
made for projects
The proceeds can be used
at any time to make
Project pre-sale
24054347.29 40951191.37 payments and such
funds
payments can only be
made for projects
Total 62370486.26 43505547.56 —
(7) Monetary funds not classified as cash and cash equivalents
Reasons for not
Amount of the Amount of last classifying the funds as
Item
current year year cash and cash
equivalents
Pledged for borrowing or
Cash deposit 556608881.87 384011696.60 deposit for issuance of
banker acceptance
Time deposit 567478893.23 226611500.00 Pledged for borrowing
Not readily available for
Frozen funds 208501996.18 220952030.87
payment
Total 1332589771.28 831575227.47 —
66. Items in the Statement of Changes in Shareholders' Equity
No "other" amount in the closing amount of last year was adjusted in the current year.
67. Foreign currency monetary items
(1) Foreign currency monetary items
Year-end foreign Exchange Year-end balance
Item
currency balance rate denominated in RMB
Monetary assets — —
Including: USD 47765558.32 7.18840 343357939.43
EUR 6687.64 7.52570 50329.17
EGP 15867184.95 0.14140 2243619.95
275Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Year-end foreign Exchange Year-end balance
Item
currency balance rate denominated in RMB
Sterling 1.32 9.07560 11.98
HKD 2539642.58 0.92604 2351810.61
CAD 6.96 5.04980 35.15
PLN 3166006.02 1.75973 5571315.77
Accounts receivable — —
Including: USD 86994147.59 7.18840 625348730.54
EUR 380971.00 7.52570 2867073.45
EGP 0.14140
HKD 957472.71 0.92604 886658.03
AUD 49764.00 4.50700 224286.35
Other receivables — —
Including: USD 108431901.40 7.18840 779451880.02
EGP 108000.00 0.14140 15271.20
HKD 749053.67 0.92604 693653.66
JPY 21400000.00 0.04623 989386.20
Accounts payable — —
Including: USD 5367446.58 7.18840 38583353.00
EUR 7.52570
EGP 35620358.59 0.14140 5036718.70
HKD 117930944.11 0.92604 109208771.48
Other payables — —
Including: USD 3708173.01 7.18840 26655830.87
EUR 112867.40 7.52570 849406.19
EGP 498014.80 0.14140 70419.29
HKD 3124750.08 0.92604 2893643.56
276Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
(2) Overseas entities
The significant overseas entities include Hongdin Trading Hong Kong Konka Chain
Kingdom Memory Technologies Hongjet Jiali International and Kowin Memory (Hong
Kong). The main overseas operating place is Hong Kong. The Company's recording currency
is HKD since the main currency in circulation in Hong Kong is HKD.VII. R&D expenditures
Amount incurred in Amount incurred
Item
the current year last year
Salary 226287518.69 271425739.22
Depreciation and amortization charge 105315963.39 109324146.88
New product trial production expense 20011198.25 37107469.57
Material expense 18169936.41 29602114.38
Commission service fee 1242563.23 4452755.80
Testing expense 3315736.07 5899826.42
Others 42062924.30 40181707.59
Total 416405840.34 497993759.86
Including: Expensed R&D expenditure 416405840.34 497993759.86
Capitalized R&D expenditure
VIII. Changes in the Scope of Consolidation
1. Business combinations not under common control
The Company had no combinations of businesses not under common control in the
current year.
2. Business combinations under common control
The Company had no combinations of businesses under common control in the current
year.
3. Disposal of subsidiaries
The Company did not dispose of any subsidiary in the current year.
4. Changes in the scope of consolidation due to other reasons
(1) Subsidiaries established in the current year
No subsidiaries were established in the current year.
(2) Subsidiaries de-registrated or reduction in the current year
277Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Name of subsidiary Registered capital Shareholding(RMB'0000) percentage (%)
Chengdu Anren 500.00 51.00
Wankaida 1000.00 100.00
Boluo Konka 4000.00 100.00
Chengdu Konka Smart 5000.00 100.00
Konka Huanjia 18000.00 51.00
Konka Huanjia (Henan) 10000.00 51.00
Konka Intelligent Manufacturing 2000.00 51.00
Guizhou Konka New Energy 10000.00 98.00
Anhui Konka Low Carbon 1500.00 55.00
Kanghong Xintong 10000.00 95.09
Konka Photovoltaic Technology 15000.00 60.00
278Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
IX. Interests in other entities
1. Interests in subsidiaries
(1) Composition of the business group
Shareholding
Main place of Place of Acquisition
No. Name of subsidiary Business nature percentage (%)
business registration method
Direct Indirect
Shenzhen Shenzhen Enterprise management consulting incubation Establishment
1 Konka Ventures 51.00
Guangdong Guangdong management housing leasing etc. or investment
Other professional consultation and Establishment
2 Yantai Konka Yantai Shandong Yantai Shandong 51.00
investigation or investment
Establishment
3 Konka Enterprise Service Guiyang Guizhou Guiyang Guizhou Enterprise management consulting 51.00
or investment
Establishment
4 Yibin Konka Incubator Yibin Sichuan Yibin Sichuan Commercial services 51.00
or investment
Establishment
5 Anhui Konka Chuzhou Anhui Chuzhou Anhui Manufacturing 78.00
or investment
Establishment
6 Kangzhi Trade Chuzhou Anhui Chuzhou Anhui Wholesale 78.00
or investment
Konka Electronic Shenzhen Shenzhen Other science and technology promotion Establishment
7100.00
Material Guangdong Guangdong services or investment
8 Konka Unifortune Shenzhen Shenzhen Trade and services 51.00 Establishment
279Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Shareholding
Main place of Place of Acquisition
No. Name of subsidiary Business nature percentage (%)
business registration method
Direct Indirect
Guangdong Guangdong or investment
Establishment
9 Jiali International Hong Kong China Hong Kong China Trade and services 51.00
or investment
Dongguan Dongguan Establishment
10 Dongguan Konka Manufacturing 75.00 25.00
Guangdong Guangdong or investment
Establishment
11 Suining Konka Smart Suining Sichuan Suining Sichuan Wholesale 100.00
or investment
Establishment
12 Konka Europe Germany Frankfurt Germany Frankfurt International trade 100.00
or investment
Telecommunication Shenzhen Shenzhen Establishment
13 Manufacturing 75.00 25.00
Technology Guangdong Guangdong or investment
Establishment
14 Konka Mobility Hong Kong China Hong Kong China Commerce 100.00
or investment
Development of science Shenzhen Shenzhen Establishment
15 Commerce 100.00
and technology industry Guangdong Guangdong or investment
Establishment
16 Sichuan Konka Yibin Sichuan Yibin Sichuan Manufacturing 100.00
or investment
Establishment
17 Yibin Smart Yibin Sichuan Yibin Sichuan Manufacturing 100.00
or investment
280Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Shareholding
Main place of Place of Acquisition
No. Name of subsidiary Business nature percentage (%)
business registration method
Direct Indirect
Establishment
18 Anhui Tongchuang Chuzhou Anhui Chuzhou Anhui Manufacturing 100.00
or investment
Anhui Electrical Establishment
19 Chuzhou Anhui Chuzhou Anhui Manufacturing 51.00
Appliance or investment
Merger of
enterprises
20 Frestec Refrigeration Xinxiang Henan Xinxiang Henan Manufacturing 51.00
not under the
same control
Establishment
21 Frestec Smart Home Xinxiang Henan Xinxiang Henan Manufacturing 51.00
or investment
Merger of
Frestec Electrical enterprises
22 Xinxiang Henan Xinxiang Henan Manufacturing 51.00
Appliances not under the
same control
Merger of
Frestec Household enterprises
23 Xinxiang Henan Xinxiang Henan Manufacturing 51.00
Appliances not under the
same control
24 Jiangsu Konka Smart Changzhou Jiangsu Changzhou Jiangsu Manufacturing 51.00 Establishment
281Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Shareholding
Main place of Place of Acquisition
No. Name of subsidiary Business nature percentage (%)
business registration method
Direct Indirect
or investment
Establishment
25 Kangjiatong Yibin Sichuan Yibin Sichuan Trade and services 100.00
or investment
Shenzhen Shenzhen Establishment
26 Pengrun Technology Trade and services 51.00
Guangdong Guangdong or investment
Establishment
27 Jiaxin Technology Hong Kong China Hong Kong China Trade and services 51.00
or investment
Establishment
28 Beijing Konka Electronic Beijing Beijing Sale of home appliance 100.00
or investment
Tianjin Pilot Free Tianjin Pilot Free Establishment
29 Tianjin Konka Service Industry 100.00
Trade Zone Trade Zone or investment
Shenzhen Shenzhen Establishment
30 Konka Circuit Manufacturing 100.00
Guangdong Guangdong or investment
Establishment
31 Boluo Konka Precision Boluo Guangdong Boluo Guangdong Manufacturing 100.00
or investment
Establishment
32 Hong Kong Konka Hong Kong China Hong Kong China International trade 100.00
or investment
Establishment
33 Hongdin Investment Hong Kong China Hong Kong China Investment holding 100.00
or investment
282Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Shareholding
Main place of Place of Acquisition
No. Name of subsidiary Business nature percentage (%)
business registration method
Direct Indirect
Chain Kingdom Memory Establishment
34 Hong Kong China Hong Kong China International trade 51.00
Technologies or investment
Chain Kingdom
Establishment
35 Semiconductor Zhejiang Shaoxing Zhejiang Shaoxing Trade and services 51.00
or investment
(Shaoxing)
Establishment
36 Hongjet Hong Kong China Hong Kong China Trade and services 51.00
or investment
Establishment
37 Hongdin Trading Hong Kong China Hong Kong China International trade 100.00
or investment
Establishment
38 Kanghao Technology Egypt Cairo Egypt Cairo International trade 67.00
or investment
Establishment
39 Konka North America America California America California International trade 100.00
or investment
Shenzhen Shenzhen Establishment
40 Konka Investment Capital market services 100.00
Guangdong Guangdong or investment
Yibin Konka Technology Industrial park development and operation Establishment
41 Yibin Sichuan Yibin Sichuan 100.00
Park management or investment
Shenzhen Shenzhen Establishment
42 Konka Capital Capital market services 100.00
Guangdong Guangdong or investment
283Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Shareholding
Main place of Place of Acquisition
No. Name of subsidiary Business nature percentage (%)
business registration method
Direct Indirect
Shenzhen Shenzhen Establishment
43 Konka Suiyong Commercial services 51.00
Guangdong Guangdong or investment
Shenzhen Shenzhen Establishment
44 Shengxing Industrial Commercial services 51.00
Guangdong Guangdong or investment
Shenzhen Shenzhen Establishment
45 Zhitong Technology Software and information technology services 51.00
Guangdong Guangdong or investment
Shenzhen Shenzhen Establishment
46 Electronic Technology Manufacturing 100.00
Guangdong Guangdong or investment
Shenzhen Shenzhen Establishment
47 Shenzhen Kangcheng Software and information technology services 100.00
Guangdong Guangdong or investment
Shenzhen Shenzhen Establishment
48 Xiaojia Technology Retail trade 100.00
Guangdong Guangdong or investment
Establishment
49 Haimen Konka Nantong Jiangsu Nantong Jiangsu Trade and services 100.00
or investment
Chengdu Konka Establishment
50 Chengdu Sichuan Chengdu Sichuan Manufacturing 100.00
Electronics or investment
Merger of
Zhongshan Zhongshan
51 XingDa HongYe Manufacturing 51.00 enterprises
Guangdong Guangdong
not under the
284Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Shareholding
Main place of Place of Acquisition
No. Name of subsidiary Business nature percentage (%)
business registration method
Direct Indirect
same control
Establishment
52 Liaoyang Kangshun Liaoyang Liaoning Liaoyang Liaoning Wholesale 100.00
or investment
Liaoyang Kangshun Comprehensive utilization of renewable Establishment
53 Liaoyang Liaoning Liaoyang Liaoning 100.00
Renewable resources or investment
Establishment
54 Nanjing Konka Nanjing Jiangsu Nanjing Jiangsu Wholesale 100.00
or investment
Establishment
55 Shanghai Konka Shanghai Shanghai Real estate 100.00
or investment
Establishment
56 Yantai Kangjin Yantai Shandong Yantai Shandong Real estate 62.80
or investment
Merger of
enterprises
57 Jiangxi Konka Jiujiang Jiangxi Jiujiang Jiangxi Manufacturing and processing 51.00
not under the
same control
Merger of
enterprises
58 Xinfeng Microcrystalline Nanchang Jiangxi Nanchang Jiangxi Manufacturing and processing 51.00
not under the
same control
285Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Shareholding
Main place of Place of Acquisition
No. Name of subsidiary Business nature percentage (%)
business registration method
Direct Indirect
Shenzhen Shenzhen Establishment
59 Shenzhen Nianhua Commercial services 100.00
Guangdong Guangdong or investment
Shenzhen Konka Shenzhen Shenzhen Establishment
60 Semiconductors 100.00
Semiconductor Guangdong Guangdong or investment
Establishment
61 Chongqing Konka Chongqing Chongqing Software and information technology services 100.00
or investment
Establishment
62 Ji'an Konka Ji'an Jiangxi Ji'an Jiangxi Commercial services 51.00
or investment
Suining Konka Industrial Industrial park development and operation Establishment
63 Suining Sichuan Suining Sichuan 100.00
Park management or investment
Establishment
64 Konka Ronghe Jiaxing Zhejiang Jiaxing Zhejiang Wholesale and retail trade 51.00
or investment
Suining Electronic Establishment
65 Suining Sichuan Suining Sichuan Commercial services 100.00
Technological Innovation or investment
Shenzhen Chuangzhi Shenzhen Shenzhen Establishment
66 Wholesale 100.00
Electrical Appliances Guangdong Guangdong or investment
Chongqing
Establishment
67 Optoelectronic Chongqing Chongqing Research & experiment development 70.00 5.00
or investment
Technology
286Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Shareholding
Main place of Place of Acquisition
No. Name of subsidiary Business nature percentage (%)
business registration method
Direct Indirect
Kowin Memory Shenzhen Shenzhen Computer telecommunications and other Establishment
68100.00
(Shenzhen) Guangdong Guangdong electronic equipment manufacturing or investment
Konka Xinyun Computer telecommunications and other Establishment
69 Yancheng Jiangsu Yancheng Jiangsu 100.00
Semiconductor electronic equipment manufacturing or investment
Jiangkang (Shanghai) Establishment
70 Shanghai Shanghai Research & experiment development 51.00
Technology or investment
Ningbo Kanghanrui Electrical machinery and equipment Establishment
71 Ningbo Zhejiang Ningbo Zhejiang 60.00
Electric Appliances manufacturing or investment
Establishment
72 Suining Jiarun Property Suining Sichuan Suining Sichuan Real estate 100.00
or investment
Ecological protection and environmental Establishment
73 Yibin Kangrun Yibin Sichuan Yibin Sichuan 67.00
governance services or investment
Hainan Konka Establishment
74 Haikou Hainan Haikou Hainan Commercial services 100.00
Technology or investment
Merger of
Jiangxi High Transparent enterprises
75 Jiujiang Jiangxi Jiujiang Jiangxi Manufacturing and processing 51.00
Substrate not under the
same control
76 Nantong Kangdian Nantong Jiangsu Nantong Jiangsu Computer telecommunications and other 100.00 Establishment
287Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Shareholding
Main place of Place of Acquisition
No. Name of subsidiary Business nature percentage (%)
business registration method
Direct Indirect
electronic equipment manufacturing or investment
Establishment
77 Chuzhou Konka Chuzhou Anhui Chuzhou Anhui Manufacturing 94.90
or investment
Establishment
78 Konka Soft Electronic Suining Sichuan Suining Sichuan Manufacturing 97.50
or investment
Konka Hongye Establishment
79 Suining Sichuan Suining Sichuan Manufacturing 95.05
Electronics or investment
Kowin Memory (Hong Wholesale of computers software and Establishment
80 Hong Kong China Hong Kong China 100.00
Kong) auxiliary equipment or investment
Konka Cross-border Establishment
81 Handan Hebei Handan Hebei Wholesale 100.00
(Hebei) or investment
Establishment
82 Konka Central China Changsha Hunan Changsha Hunan Commercial services 100.00
or investment
Ecological protection and environmental Establishment
83 Yibin Kangrun Medical Yibin Sichuan Yibin Sichuan 63.65
governance services or investment
Manufacture of household cleaning and Establishment
84 Shanxi Konka Intelligent Xi'an Shanxi Xi'an Shanxi 51.00
sanitary electrical appliances or investment
Chongqing Xinyuan Science and technology promotion and Establishment
85 Chongqing Chongqing 75.00
Semiconductor application services or investment
288Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Shareholding
Main place of Place of Acquisition
No. Name of subsidiary Business nature percentage (%)
business registration method
Direct Indirect
Establishment
86 Anlu Konka Anlu Hubei Anlu Hubei Software and information technology services 100.00
or investment
Shenzhen Shenzhen Establishment
87 Kanghong Dongsheng Commercial services 95.09
Guangdong Guangdong or investment
Qiannan Buyi and Qiannan Buyi and
Guizhou Konka New Establishment
88 Miao Autonomous Miao Autonomous Manufacturing and processing 51.00
Material or investment
Prefecture Guizhou Prefecture Guizhou
Shanxi Smart Home Computer telecommunications and other Establishment
89 Jincheng Shanxi Jincheng Shanxi 100.00
Appliance electronic equipment manufacturing or investment
Qiannan Buyi and Qiannan Buyi and
Guizhou Kanggui Establishment
90 Miao Autonomous Miao Autonomous Manufacturing and processing 70.00
Materials or investment
Prefecture Guizhou Prefecture Guizhou
Establishment
91 Nantong Kanghai Nantong Jiangsu Nantong Jiangsu Real estate 51.00
or investment
Establishment
92 Chongqing Kangyiyun Chongqing Chongqing Real estate 80.00
or investment
Jiangxi Konka High-tech Establishment
93 Shangrao Jiangxi Shangrao Jiangxi Commercial services 100.00
Park or investment
94 Shangrao Konka Shangrao Jiangxi Shangrao Jiangxi Research & experiment development 100.00 Establishment
289Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Shareholding
Main place of Place of Acquisition
No. Name of subsidiary Business nature percentage (%)
business registration method
Direct Indirect
Electronic Technology or investment
Innovation
Zhejiang Konka Establishment
95 Zhejiang Shaoxing Zhejiang Shaoxing Research & experiment development 100.00
Electronic or investment
Zhejiang Konka Establishment
96 Zhejiang Shaoxing Zhejiang Shaoxing Commercial services 51.00 49.00
Technology Industry or investment
Establishment
97 Xi'an Konka Intelligent Xi'an Shanxi Xi'an Shanxi Wholesale 51.00
or investment
Computer telecommunications and other Establishment
98 Xi'an Konka Network Xi'an Shanxi Xi'an Shanxi 100.00
electronic equipment manufacturing or investment
Xi'an Kanghong Establishment
99 Xi'an Shanxi Xi'an Shanxi Commercial services 40.00 60.00
Technology Industry or investment
Xi'an Konka Intelligent Establishment
100 Xi'an Shanxi Xi'an Shanxi Retail trade 100.00
Technology or investment
Songyang Industry Establishment
101 Lishui Zhejiang Lishui Zhejiang Software and information technology services 51.00
Operation or investment
Shenzhen Shenzhen Computer telecommunications and other Establishment
102 Kangyan Technology 100.00
Guangdong Guangdong electronic equipment manufacturing or investment
103 Songyang Konka Lishui Zhejiang Lishui Zhejiang Wholesale 100.00 Establishment
290Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Shareholding
Main place of Place of Acquisition
No. Name of subsidiary Business nature percentage (%)
business registration method
Direct Indirect
Intelligent or investment
Electrical machinery and equipment Establishment
104 Konka North China Tianjin Tianjin 100.00
manufacturing or investment
Shenzhen Shenzhen Establishment
105 Digital Technology Software and information technology services 100.00
Guangdong Guangdong or investment
(2) Major non-wholly-owned subsidiaries
Shareholding of Profit or loss attributable to Dividends declared to be Ending balance of
Company name minority minority shareholders in the distributed to minority minority shareholders'
shareholders current year shareholders in the current year equities
Shanxi Konka Intelligent 49.00% -11962921.97 182180174.07
(3) Key financial data on major non-wholly-owned subsidiaries
Ending balance
Name of subsidiary Non-current Current Non-current
Current assets Total assets Total liabilities
assets liabilities liabilities
Shanxi Konka Intelligent 523431034.77 560221880.91 1083652915.68 423606123.36 288250518.71 711856642.07
(Continued)
291Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Beginning balance
Name of subsidiary Non-current Current Non-current
Current assets Total assets Total liabilities
assets liabilities liabilities
Shanxi Konka Intelligent 523223416.76 566375884.26 1089599301.02 398648732.52 295071926.82 693720659.34
(Continued)
Amount incurred in the current year
Name of subsidiary Total comprehensive Cash flows from
Operating revenue Net profit
income operating activities
Shanxi Konka Intelligent 260200550.68 -24414126.47 -24414126.47 42019883.38
(Continued)
Amount incurred last year
Name of subsidiary Total comprehensive Cash flows from
Operating revenue Net profit
income operating activities
Shanxi Konka Intelligent 243470872.39 -7754013.73 -7754013.73 138204929.56
2. Equity in associates
(1) Important associates
Shareholding percentage Accounting processing
Main place of Place of
Name of associates Business nature (%) method for investment in
business registration
Direct Indirect joint ventures or
associated enterprises
292Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Shareholding percentage Accounting processing
Main place of Place of (%) method for investment in
Name of associates Business nature
business registration joint ventures or
Direct Indirect
associated enterprises
Oriental Jiakang No. 1 (Zhuhai)
Investment
Private Equity Investment Fund Zhuhai Zhuhai 49.95 Equity method
management
(Limited Partnership)
Professional
Shenzhen Jielunte Technology Co.Shenzhen Shenzhen machinery 42.79 Equity method
Ltd.manufacturing
(2) Main financial information of important associates
Amount incurred at the end of the year/in the Amount incurred at the beginning of the
current year year/in last year
Oriental Jiakang No. 1 Oriental Jiakang No. 1
Item Shenzhen Jielunte Shenzhen Jielunte
(Zhuhai) Private Equity (Zhuhai) Private Equity
Technology Co. Technology Co.Investment Fund (Limited Investment Fund (Limited
Ltd. Ltd.Partnership) Partnership)
Current assets 679918421.73 299214528.27 686882241.74 274817240.18
Including: cash and cash equivalents 9020859.89 16394140.52 11679383.12 12866776.37
Non-current assets 385578306.45 338361205.79
Total assets 679918421.73 684792834.72 686882241.74 613178445.97
293Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Amount incurred at the end of the year/in the Amount incurred at the beginning of the
current year year/in last year
Oriental Jiakang No. 1 Oriental Jiakang No. 1
Item Shenzhen Jielunte Shenzhen Jielunte
(Zhuhai) Private Equity (Zhuhai) Private Equity
Technology Co. Technology Co.Investment Fund (Limited Investment Fund (Limited
Ltd. Ltd.Partnership) Partnership)
Current liabilities 10026785.45 310050065.52 10026785.45 261433145.90
Non-current liabilities 172196132.11 133388974.62
Total liabilities 10026785.45 482246197.63 10026785.45 394822120.52
Total net assets 669891636.28 202546637.09 676855456.29 218356325.45
Including: minority equity 6414476.36 9322847.51
Equities attributable to shareholders of the parent
669891636.28196132160.73676855456.29209033477.94
company
Share of net assets calculated based on the
334610872.3283924951.58338089300.4294917575.00
shareholding
Adjustments
- Goodwill
- Unrealized profit of internal transactions
- Others
Book value of equity investments in associated
334610872.3289059544.64338089300.4294917575.00
enterprises
294Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Amount incurred at the end of the year/in the Amount incurred at the beginning of the
current year year/in last year
Oriental Jiakang No. 1 Oriental Jiakang No. 1
Item Shenzhen Jielunte Shenzhen Jielunte
(Zhuhai) Private Equity (Zhuhai) Private Equity
Technology Co. Technology Co.Investment Fund (Limited Investment Fund (Limited
Ltd. Ltd.Partnership) Partnership)
Fair value of equity investments in associates with
publicly quoted prices
Operating revenue 453598821.35 410594556.87
Finance costs -124906.64 5643459.99 -558256.35 4030883.95
Income tax expense 6482111.17 1864514.10
Net profit 3192911.59 -15630059.79 32981401.16 -12883145.89
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income 3192911.59 -15630059.79 32981401.16 -12883145.89
Dividend received from joint venture in the current
year
295Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
(3) Summarized financial information of insignificant associates
Beginning balance
Ending balance /
/
Item Amount incurred in
Amount incurred
the current year
last year
Associate — —
Total book value of investment 4304690436.53 5133476987.87
The total of following items according to the
——
shareholding proportions
- Net profit -127981842.74 -182806294.40
Other comprehensive income -115491.69 -86041.63
Total comprehensive income -128097334.43 -182892336.03
X. Government grants
1. Liability items involving government subsidies
Amount
Subsidies Amount
recognized as
Beginning increased in transferred to
Account title non-operating
balance the current other incomes in
revenue in the
year the current year
current year
Deferred
425135237.9024456000.0042154230.53
income
(Continued)
Other changes in
Account title Ending balance Related to assets/ income
the current year
Deferred
-14000000.00 393437007.37 Related to assets/ income
income
2. Government grants recognized as profit or loss of the Reporting Period
Amount incurred in Amount incurred last
Account title
the current year year
Other income 99292763.50 270618031.94
Finance costs 10040000.00
Remarks: the Group received a loan interest subsidy of RMB 10040000.00 in the
current year which directly offset the interest expenses in the current financial expenses.
296Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
XI. Risks Related to Financial Instruments
The Group's main financial instruments include borrowings accounts receivable
accounts payable trading financial assets and liabilities etc. Please refer to Note VI for
detailed descriptions of various financial instruments. The risks related to these financial
instruments and the risk management policies adopted by the Group to mitigate these risks are
described below. The management of the Group manages and monitors these risk exposures
to ensure that these risks are controlled within a limited scope.
1. Management objectives and policies for various risks
The Group's objective in engaging in the risk management is to achieve the proper
balance between the risks and benefits minimise the negative impact of these risks on the
Company's operating results and maximise the profits of shareholders and other equity
investors. Based on the risk management goal the basic strategy of the Company's risk
management is determining and analyzing the various risks faced by the Company setting up
the bottom line of risk and conducting appropriate risk management and timely supervising
various risks in a reliable way and controlling the risk within the range of limit.
(1) Market risk
1) Exchange rate risk
Foreign exchange risk refers to the risks that may lead to losses due to fluctuation in
exchange rate. The foreign exchange risk borne by the Group is related to USD. Except the
procurement and sales in USD of the Company's subsidiaries Hong Kong Konka Hongdin
Trading Chain Kingdom Memory Technologies Hongjet and Jiali the Group's other primary
business activities are settled in RMB. The currency risk arising from the assets and liabilities
of such balance in USD may affect the Group's operating results. As of December 31 2024
the Group's assets and liabilities were mainly the balance in RMB except for the assets or
liabilities of a balance in USD as listed below.Item December 31 2024 December 31 2023
Monetary assets 47765558.32 91184116.43
Accounts receivable 86994147.59 85032871.75
Other receivables 108431901.40 110836591.33
Other payables 3708173.01 3453133.32
Accounts payable 5367446.58 4828295.25
The Group pays close attention to the impact of exchange rate changes on the Group's
foreign exchange risk and requires major companies in the Group that purchase and sell in
foreign currency to pay attention to the changes in foreign currency assets and liabilities
297Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
manage the Group's foreign currency net asset exposure in a unified way implement single
currency settlement and reduce the scale of foreign currency assets and liabilities so as to
reduce foreign exchange risk exposure.
2) Interest rate risk
The Group bears interest rate risk due to interest rate changes of interest-bearing
financial assets and liabilities. The Group's interest bearing financial assets are mainly bank
deposits of which the majority of the variable interest rates are short-term in nature while the
interest bearing financial liabilities are mainly bank borrowings and corporate bonds. The
Group's long-term bank borrowings and corporate bonds are at fixed interest rates. The risk of
cash flow changes of financial instruments caused by interest rate changes is mainly related to
short-term bank borrowings with floating interest rates. The Group's policy is to maintain the
floating interest rates of such borrowings to eliminate the fair value risk of interest rate
changes. As of December 31 2024 the balance of such short-term borrowings was RMB
5741171468.26.
(2) Credit risk
As of December 31 2024 the maximum credit risk exposure that may cause financial
losses to the Group mainly came from losses generated from the Group's financial assets due
to failure of the other party to a contract to perform its obligations and the financial guarantee
undertaken by the Group including:
The book amount of the financial assets recognized in the consolidated balance sheet;
For financial instruments measured at fair value the book value reflects its risk exposure but
it is not the maximum risk exposure and its maximum risk exposure will change with the
change of fair value in the future.In order to reduce credit risk the Group has set up a group to determine the credit limit
conduct credit approval and implement other monitoring procedures to ensure that necessary
measures are taken to recover overdue claims. In addition the Group reviews the recovery of
each single receivable on each balance sheet date to ensure that sufficient provision for bad
debts is made for the unrecoverable amount. Therefore the Group's management believes that
the Group's credit risk has been greatly reduced.The Group's working capital is deposited in banks with a high credit rating so the credit
risk of working capital is low.The Group has adopted necessary policies to ensure that all customers have good credit
records. Except for the top five customers in terms of the amount of accounts receivable the
Group has no other major credit concentration risks. For the financial assets of the Group that
have been individually impaired please refer to 4. Accounts receivable and 7. Other
298Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
receivables in Note VI.
(3) Liquidity risk
Liquidity risk refers to the risk that the Group is unable to fulfill its financial obligations
on the due date. The Group manages liquidity risk in the method of ensuring that there is
sufficient liquidity to fulfil debt obligations without causing unacceptable loss or damage to
the Group's reputation. In order to mitigate the liquidity risk the Group's management has
carried out a detailed inspection on the liquidity of the Group including the maturity of
accounts payable and other payables bank credit line and bond financing. The conclusion is
that the Group has sufficient funds to meet the needs of the Group's short-term debts and
capital expenditure.The analysis of the financial assets and financial liabilities held by the Group based
on the maturity period of the undiscounted remaining contractual obligations is as
follows:
299Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Amount as of December 31 2024:
One to two Two to five
Item Within 1 year Over 5 years Total
years years
Financial assets
Monetary assets 4115767247.73 4115767247.73
Trading financial
286648129.34286648129.34
assets
Notes receivable 169675176.16 169675176.16
Accounts receivable 1458923066.70 1458923066.70
Other receivables 989245120.86 989245120.86
Other current assets 1590781482.74 1590781482.74
Financial liabilities
Short-term borrowings 5741171468.26 5741171468.26
Notes payable 1150310856.70 1150310856.70
Accounts payable 2774615788.24 2774615788.24
Other payables 1676154887.59 1676154887.59
Employee benefits
243731849.78243731849.78
payable
Current portion of non-
6655534395.196655534395.19
current liabilities
Long-term borrowing 4178221706.59 512738058.07 839690037.27 5530649801.93
Bonds payable 2295193501.05 2295193501.05
300Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
One to two Two to five
Item Within 1 year Over 5 years Total
years years
Long-term payables 5504548.24 5504548.24
301Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
2. Sensitivity analysis
The Group adopts sensitivity analysis technology to analyze the possible impact of
reasonable and possible changes of risk variables on current profits/losses or shareholders'
equity. As any risk variable rarely changes in isolation and the correlation between variables
will have a significant effect on the final impact amount of the change of a risk variable the
following content is based on the assumption that the change of each variable is independent.
(1) Sensitivity analysis of foreign exchange risk
Assumption for the sensitivity of foreign exchange risk: All net investment hedging and
cash flow hedging of overseas operations are highly effective.On the basis of the above assumption under the condition that other variables remain
unchanged the impact of reasonable changes in the exchange rate on current profits/losses
and equity after tax is as follows:
Year 2024 Year 2023
Exchange
Impact on Impact on
Item rate Impact on net Impact on net
shareholders' shareholders'
fluctuations profit profit
equity equity
Appreciation
USD of 1% 13038269.46 9355341.19 16574067.76 12261381.38
against RMB
Depreciation
USD of 1% -13038269.46 -9355341.19 -16574067.76 -12261381.38
against RMB
(2) Sensitivity analysis of interest rate risk
Sensitivity analysis of interest rate risk is based on the following assumptions:
Changes in market interest rates affect the interest income or expense of financial
instruments with variable interest rates;
For financial instruments with fixed interest rates measured at fair value market interest
rate changes affect only their interest income or expense;
Changes in the fair values of derivative financial instruments and other financial assets
and liabilities are calculated at the market interest rate on the balance sheet date by discounted
cash flow.On the basis of the above assumptions and under the condition that other variables
remain unchanged the impact of reasonable changes in the interest rate on current
profits/losses and equity after tax is as follows:
302Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Year 2024 Year 2023
Interest
Impact on Impact on
Item rate Impact on net Impact on net
shareholders' shareholders'
fluctuations profit profit
equity equity
Borrowings
at floating
Up 0.5% -21670117.43 -21331876.38 -24196276.74 -23679719.04
interest
rates
Borrowings
at floating
Down 0.5% 21670117.43 21331876.38 24196276.74 23679719.04
interest
rates
XII. Disclosure of Fair Value
1. Closing fair value of assets and liabilities measured at fair value
Closing fair value
Level-1 fair Level-2 fair
Item Level-3 fair value
value value Total
measurement
measurement measurement
I. Continuous fair value
————
measurement
(I) Trading financial assets 286648129.34 286648129.34
1. Financial assets measured at
fair value through current 286648129.34 286648129.34
profit or loss
(II) Accounts receivable
63943324.5363943324.53
financing
(III) Other debt investments
(IV) Other equity instrument
16114932.0016114932.00
investments
(V) Investment properties
(VI) Other non-current
1802409887.891802409887.89
financial assets
Total assets continuously
286648129.3463943324.531818524819.892169116273.76
measured at fair value
Total liabilities continuously
measured at fair value
303Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Closing fair value
Level-1 fair Level-2 fair
Item Level-3 fair value
value value Total
measurement
measurement measurement
II. Non-continuous fair value
————
measurement
Total assets not continuously
measured at fair value
Total liabilities not
continuously measured at
fair value
2. Basis for determining the market price of projects continuously and non-
continuously measured at Level-1 fair value
The Level-1 input is an unadjusted quoted price in an active market for the same assets
and liabilities available on the measurement date.
3. Qualitative and quantitative data on valuation techniques and important
parameters adopted for projects continuously and non-continuously measured at Level-
2 fair value
The input value at Level-2 is the input value observable directly or indirectly of relevant
assets or liabilities exclusive of input value at Level-1.
4. Qualitative and quantitative data on valuation techniques and important
parameters adopted for projects continuously and non-continuously measured at Level-
3 fair value
The Level-3 inputs are the unobservable inputs of related assets and liabilities.
5. For items continuously measured at fair value if there is a conversion between
levels in the current year the reasons for the conversion and the policy for determining
the conversion time point
For the Group's items continuously measured at fair value there was no conversion
between levels in the current year.
6. Changes in valuation techniques in the current year and reasons for such
changes
For the items measured at fair value of the Group there were no changes in valuation
techniques in the current year.
304Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
XIII. Related Party and Related Party Transactions
1. Related party relationship
(1) Parent company of the Company
Voting
Shareholding right
percentage percentage
of the parent of the
Name of the parent Place of Business Registered
company in parent
company registration nature capital
the company
Company in the
(%) Company
(%)
Tourism real
Overseas Chinese
estate RMB12
Town Holdings Shenzhen 29.999997 29.999997
electronics billion
Company
industry
The ultimate controller of the Company is State-owned Assets Supervisor Commission
of the State Council.
(2) Subsidiaries of the Company
Please refer to Note IX.1.(1) Subsidiaries for the information of subsidiaries.
(3) Associates of the Company
For details of the Company's important associates please refer to Note IX.2.(1)
Important associates.Information on other associated enterprises having connected transactions with the
Company in the current year or forming balance due to connected transactions made in
previous period:
Relationship
Name of associates with the
Company
Kangkong Venture Capital (Shenzhen) Co. Ltd. Associates
Dongguan Guankang Yuhong Investment Co. Ltd. Associates
Chuzhou Kangxin Health Industry Development Co. Ltd. Associates
Sichuan Chengrui Real Estate Co. Ltd. Associates
Yantai Kangyun Industrial Development Co. Ltd. Associates
305Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Relationship
Name of associates with the
Company
Sichuan Hongxinchen Real Estate Development Co. Ltd. Associates
Zhejiang Kangying Semiconductor Technology Co. Ltd. (formerly known as
Shenzhen Kangying Semiconductor Technology Co. Ltd.) Associates
Shenzhen KONKA E-display Co. Ltd. Associates
Shenzhen Jielunte Technology Co. Ltd. Associates
Dongguan Konka Smart Electronic Technology Co. Ltd. Associates
Shenzhen Kangjia Jiapin Intelligent Electrical Apparatus Technology Co.Ltd. Associates
Shenzhen Aimijiakang Technology Co. Ltd. Associates
Anhui Kaikai Shijie E-commerce Co. Ltd. Associates
Shandong Kangfei Intelligent Electrical Appliances Co. Ltd. Associates
Puchuang Jiakang Technology Co Ltd. Associates
KK Smartech Limited Associates
Shenzhen Yaode Technology Co. Ltd. Associates
Shenzhen Kanghongxing Intelligent Technology Co. Ltd. Associates
Panxu Intelligence Co. Ltd. Associates
Econ Technology Associates
Dongguan Kangjia New Materials Technology Co. Ltd.. Associates
Konka Sungo Smart Energy (Zhejiang) Co. Ltd. Associates
Konka Huanjia Environmental Technology Co. Ltd. Associates
Yantai Kangyue Investment Co. Ltd. Associates
Chongqing Lanlv Moma Real Estate Development Co. Ltd. Associates
(4) Other related parties
Names of other related parties Relationship with the Company
Chuzhou Hanshang Electric Appliance Co. Ltd. Minority shareholder of subsidiary
Beijing Xuri Shengxing Technology Co. Ltd. Minority shareholder of subsidiary
Chongqing Liangshan Industrial Investment Co. Ltd. Minority shareholder of subsidiary
Chuzhou State-owned Assets Management Co. Ltd. Minority shareholder of subsidiary
Wu Guoren Minority shareholder of subsidiary
Xiao Yongsong Minority shareholder of subsidiary
Shenzhen Unifortune Supply Chain Management Co.Ltd. Minority shareholder of subsidiary
Guizhou Huajinrun Technology Co. Ltd. Minority shareholder of subsidiary
Shenzhen Henglongtong Technology Co. Ltd. Minority shareholder of subsidiary
306Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Names of other related parties Relationship with the Company
AUJET INDUSTRY LIMITED Minority shareholder of subsidiary
Zhu Xinming Minority shareholder of subsidiary
Suiyong Rongxin Asset Management Co. Ltd. Minority shareholder of subsidiary
Shenzhen Qianhai Datang Technology Co. Ltd. Minority shareholder of subsidiary
Korea Electric Group Co. Ltd. Minority shareholder of subsidiary
HOHO ELECTRICAL & FURNITURE CO.LIMITED Minority shareholder of subsidiary
Huanjia Group Co. Ltd. Minority shareholder of subsidiary
Central SOEs Industrial Investment Fund for Poverty-
stricken Area (Jiangxi) Industrial Investment Fund Minority shareholder of subsidiary
Partnership (L.P.)
Hu Zehong Minority shareholder of subsidiary
Liang Ruiling Minority shareholder of subsidiary
Dai Yaojin Minority shareholder of subsidiary
Guizhou Jiading Mining Management Investment Co.Ltd. Minority shareholder of subsidiary
Dai Rongxing Close family member of minorityshareholders
Jiangsu Korea Electric Group Co. Ltd. The company controlled by minorityshareholders of the subsidiary
Jiangxi Meiji Enterprise Co. Ltd. The company controlled by minorityshareholders of the subsidiary
2. Related-party transaction
(1) Related party transactions involving the purchase and sale of goods and the
supply and acceptance of services
1) Purchasing goods/receiving services
Amount
Amount
Content of related- incurred in
Related party incurred last
party transactions the current
year
year
Chuzhou Hanshang Electric
Purchase of goods 167386472.57 331347005.28
Appliance Co. Ltd.Shenzhen Jielunte Technology
Co. Ltd. and its subsidiaries and Purchase of goods 78398311.31 41713723.62
associates
Overseas Chinese Town Holdings
Purchase of goods and
Company and its subsidiaries and 78142076.88 83132471.79
services
associates
Puchuang Jiakang Technology Purchase of goods 37713014.15 170595512.46
307Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Co Ltd.Jiangsu Korea Electric Group
Purchase of goods 26521440.81
Co. Ltd.Korea Electric Group Co. Ltd.Purchase of goods 21852844.87 18096478.28
and its subsidiaries
Shenzhen KONKA E-display
Purchase of goods 10375886.32 15984953.15
Co. Ltd. and its subsidiaries
Dongguan Kangjia New
Purchase of goods 7136584.98 10995157.55
Materials Technology Co. Ltd..Panxu Intelligent Co. Ltd. and its
Purchase of goods 6754741.71 7383664.55
subsidiaries
Shenzhen Kangjia Jiapin
Intelligent Electrical Apparatus Purchase of goods 4419586.21 6126037.72
Technology Co. Ltd.Dongguan Konka Smart
Purchase service 1443620.08 12468662.09
Electronic Technology Co. Ltd.HOHO ELECTRICAL &
Purchase of goods 25101.76 5864370.25
FURNITURE CO. LIMITED
Anhui Kaikai Shijie E-commerce
Purchase of goods 23456578.00
Co. Ltd. and its subsidiaries
KK Smartech Limited Purchase of goods 10415968.34
Zhejiang Kangying
Semiconductor Technology Co.Ltd. (formerly Shenzhen
Purchase of goods 6102501.84
Kangying Semiconductor
Technology Co. Ltd.) and its
subsidiaries
Purchase of goods and
Subtotal of other related parties 4404845.81 1978824.14
services
Total 444574527.46 745661909.05
(2) Information of sales of goods and provision of labour service
Amount incurred Amount
Content of related-
Related party in the current incurred last
party transactions
year year
Sales of goods and
Chuzhou Hanshang Electric
provision of labour 448249572.71 222670602.32
Appliance Co. Ltd.service
308Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Amount incurred Amount
Content of related-
Related party in the current incurred last
party transactions
year year
Sales of goods and
OCT Group Co. Ltd. and its
provision of labour 66416176.82 78023377.38
subsidiaries and associates
service
Sales of goods and
Shenzhen KONKA E-display
provision of labour 56756074.23 44349541.96
Co. Ltd. and its subsidiaries
service
Sales of goods and
Korea Electric Group Co. Ltd.provision of labour 48253101.99 79556345.56
and its subsidiaries
service
Shenzhen Jielunte Technology Sales of goods and
Co. Ltd. and its subsidiaries and provision of labour 21105047.32 43851112.38
associates service
Sales of goods and
Dongguan Konka Smart
provision of labour 5182683.36 9556588.12
Electronic Technology Co. Ltd.service
Zhejiang Kangying
Semiconductor Technology Co.Ltd. (formerly Shenzhen
Sales of goods 3618418.09 7902974.42
Kangying Semiconductor
Technology Co. Ltd.) and its
subsidiaries
Shandong Kangfei Intelligent
Sales of goods 21015219.00
Electrical Appliances Co. Ltd.Sales of goods and
Subtotal of other related parties provision of labour 15427419.47 49498978.71
service
Total 665008493.99 556424739.85
309Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
(3) Related party leases
1) Leases
Lease income Lease income
Type of leased recognized in recognized in
Lessee
assets the current the previous
year year
Commercial
OCT Group Co. Ltd. and its
residences and 24830127.03 26323455.08
subsidiaries and associates
office buildings
Commercial
Shenzhen Jielunte Technology Co.residences and 9161779.62 6524825.90
Ltd. and its subsidiaries and associates
office buildings
Commercial
Other Affiliated Companies residences and 7669134.96 9687108.69
office buildings
Total 41661041.61 42535389.67
2) Lease situation
Lease expense
Lease expense
Type of leased recognized in
Lessor recognized last
assets the current
year
year
Commercial
Overseas Chinese Town Holdings
residences and 34642360.06 30302719.98
Company and its subsidiaries
office buildings
Dongguan Guankang Yuhong
Industrial plant 12091006.44 44767575.56
Investment Co. Ltd.Total 46733366.50 75070295.54
(4) Related party guarantees
1) The Company was guarantor
Contracted Actual
Start date Expiry Whether the
guarantee guarantee
Guarantee Currency of date of guarantee is
amount amount
guarantee guarantee completed
(RMB'0000) (RMB'0000)
Boluo Konka 4000.00 CNY 2024/8/14 2025/8/13 No
310Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Contracted Actual
Start date Expiry Whether the
guarantee guarantee
Guarantee Currency of date of guarantee is
amount amount
guarantee guarantee completed
(RMB'0000) (RMB'0000)
Precision
Boluo Konka 4500.00 2024/7/12 2025/7/11
CNY No
Precision
Boluo Konka 2000.00 1666.13 2024/12/13 2025/6/13
CNY No
Precision
Boluo Konka 1800.00 1800.00 2024/11/26 2025/8/1
CNY No
Precision
Konka Circuit 10000.00 2316.27 CNY 2021/7/12 2022/7/11 No
Konka Circuit 5000.00 1351.16 CNY 2022/12/13 2037/12/13 No
Anhui Tongchuang 10000.00 8540.00 CNY 2024/4/2 2025/3/22 No
Anhui Tongchuang 5000.00 1380.00 CNY 2024/12/3 2025/7/25 No
Anhui Tongchuang 3000.00 2800.00 CNY 2021/6/23 2031/5/7 No
Anhui Tongchuang 1000.00 1000.00 CNY 2023/5/23 2026/4/26 No
Anhui Tongchuang 3000.00 3000.00 CNY 2024/3/27 2025/3/19 No
Anhui Tongchuang 4980.00 4980.00 CNY 2023/5/26 2032/12/31 No
Konka Xinyun 12100.00 5955.31 2024/1/24 2038/11/7
CNY No
Semiconductor
Konka Xinyun 8277.66 3425.00 2022/12/19 2023/12/19
CNY No
Semiconductor
Chongqing Konka 38000.00 13029.16 CNY 2024/3/14 2025/8/9 No
Electronic 8500.00 2024/7/13 2025/7/12
CNY No
Technology
Electronic 50000.00 50000.00 2024/1/30 2027/1/30
CNY No
Technology
Dongguan Konka 80000.00 33007.90 CNY 2020/11/13 2024/12/31 No
Sichuan Konka 4000.00 2800.00 CNY 2024/9/11 2025/3/29 No
Yibin Smart 980.00 980.00 CNY 2023/9/22 2024/9/21 No
Xi'an Kanghong 30000.00 7645.16 2021/8/10 2031/7/15
CNY No
Technology Industry
Konka Hongye 19010.00 10379.39 2021/10/29 2026/10/26
CNY No
Electronics
Konka Soft 975.00 138.21 CNY 2022/10/24 2026/10/26 No
311Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Contracted Actual
Start date Expiry Whether the
guarantee guarantee
Guarantee Currency of date of guarantee is
amount amount
guarantee guarantee completed
(RMB'0000) (RMB'0000)
Electronic
Ningbo Kanghanrui 6000.00 1191.89 2024/9/20 2025/3/29
CNY No
Electric Appliances
Ningbo Kanghanrui 6000.00 3000.00 2023/6/25 2028/6/24
CNY No
Electric Appliances
Frestec Smart Home 10200.00 2652.00 CNY 2023/5/22 2024/5/21 No
Yibin Kangrun 10000.00 10000.00 CNY 2024/10/24 2025/8/6 No
Anhui Konka 5500.00 3802.37 CNY 2023/8/28 2024/6/11 No
Anhui Konka 18000.00 5000.00 CNY 2024/12/25 2025/12/24 No
Anhui Konka 10215.95 7451.15 CNY 2023/12/28 2024/12/27 No
Anhui Konka 7000.00 3000.00 CNY 2024/2/6 2025/2/5 No
Anhui Konka 7000.00 3000.00 CNY 2024/3/1 2024/12/14 No
Anhui Konka 2000.00 2000.00 CNY 2024/4/30 2025/4/23 No
Anhui Konka 5000.00 4551.28 CNY 2024/7/30 2025/7/29 No
Econ Technology 1498.97 1305.36 CNY 2024/7/30 2025/1/10 No
Econ Technology 4388.00 3734.64 CNY 2024/8/12 2025/6/12 No
Econ Technology 999.32 261.32 CNY 2024/9/24 2025/9/23 No
Econ Technology 1374.06 1374.06 CNY 2024/12/25 2025/12/24 No
Econ Technology 2498.29 2248.46 CNY 2023/12/28 2024/12/27 No
Econ Technology 124.91 124.91 CNY 2024/2/6 2025/2/5 No
Econ Technology 4489.43 4489.43 CNY 2024/3/1 2024/12/14 No
Econ Technology 499.66 499.66 CNY 2024/4/30 2025/4/23 No
Econ Technology 1374.06 1374.06 CNY 2024/7/30 2025/7/29 No
Econ Technology 1124.23 1103.57 CNY 2024/7/30 2025/1/10 No
Econ Technology 507.15 507.15 CNY 2024/8/12 2025/6/12 No
Econ Technology 2248.46 1523.95 CNY 2024/9/24 2025/9/23 No
Note: regarding the guarantee provided by OCT Group Co. Ltd. for the financing
of the Group the actual amount of counter guarantee provided by the Group is RMB5.6
billion. As of the end of 2024 the relevant guarantee has not been fully fulfilled.
2) As the secured party
312Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Whether
Guarantee Start date Expiry date the
Guarantor amount Currency of of guarantee
(RMB'0000) guarantee guarantee is
completed
Konka Circuit 8200.00 CNY 2024/2/5 2025/2/4 No
Suining Konka Industrial Park 32800.00 CNY 2024/2/5 2025/2/4 No
Jiangxi Konka 13431.31 CNY 2023/6/15 2027/3/8 No
Jiangxi High Transparent Substrate 38045.57 CNY 2023/6/15 2027/3/19 No
Jiangxi High Transparent Substrate 258.80 CNY 2024/4/28 2030/3/6 No
Xinfeng Microcrystalline 34475.18 CNY 2023/6/15 2025/12/31 No
XingDa HongYe 15083.08 CNY 2024/7/15 2029/7/14 No
Konka Ventures 1322.54 CNY 2021/12/15 2022/11/5 No
Zhejiang Kangying Semiconductor
Technology Co. Ltd. (formerly
known as Shenzhen Kangying 15000.00 CNY 2024/12/3 2025/7/25 No
Semiconductor Technology Co.Ltd.)
Overseas Chinese Town Holdings
60000.00 CNY 2022/9/8 2025/9/8 No
Company
Overseas Chinese Town Holdings
60000.00 CNY 2022/10/18 2025/10/18 No
Company
Overseas Chinese Town Holdings
120000.00 CNY 2022/7/14 2025/7/14 No
Company
Overseas Chinese Town Holdings
49000.00 CNY 2022/8/23 2025/8/22 No
Company
Overseas Chinese Town Holdings
12000.00 CNY 2022/12/22 2025/12/22 No
Company
Overseas Chinese Town Holdings
54000.00 CNY 2023/1/18 2026/1/18 No
Company
Overseas Chinese Town Holdings
40000.00 CNY 2023/9/22 2026/9/22 No
Company
Overseas Chinese Town Holdings
47000.00 CNY 2023/12/13 2026/12/20 No
Company
Overseas Chinese Town Holdings
50000.00 CNY 2024/3/26 2027/3/26 No
Company
Overseas Chinese Town Holdings 59850.00 CNY 2024/6/25 2026/6/25 No
313Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Whether
Guarantee Start date Expiry date the
Guarantor amount Currency of of guarantee
(RMB'0000) guarantee guarantee is
completed
Company
Overseas Chinese Town Holdings
150000.00 CNY 2024/1/29 2027/1/29 No
Company
Overseas Chinese Town Holdings
80000.00 CNY 2024/3/18 2027/3/18 No
Company
Econ Technology 3300.00 CNY 2020/11/13 2024/12/31 No
Chuzhou State-owned Assets
836.52 CNY 2024/9/11 2025/3/29 No
Management Co. Ltd.Chuzhou State-owned Assets
1100.00 CNY 2023/9/22 2024/9/21 No
Management Co. Ltd.Chuzhou State-owned Assets
1639.25 CNY 2021/8/10 2031/7/15 No
Management Co. Ltd.Chuzhou State-owned Assets
660.00 CNY 2021/10/29 2026/10/26 No
Management Co. Ltd.Chuzhou State-owned Assets
660.00 CNY 2022/10/24 2026/10/26 No
Management Co. Ltd.Chuzhou State-owned Assets
440.00 CNY 2024/9/20 2025/3/29 No
Management Co. Ltd.Chuzhou State-owned Assets
1001.28 CNY 2023/6/25 2028/6/24 No
Management Co. Ltd.Wu Guoren 875.00 USD 2019/12/31 2024/12/31 No
Wu Guoren 2285.00 USD 2019/12/31 2024/12/31 No
Xiao Yongsong 840.00 USD 2019/12/31 2024/12/31 No
Xiao Yongsong 2193.60 USD 2019/12/31 2024/12/31 No
Shenzhen Unifortune Supply Chain
1269.10 USD 2021/6/21 2022/12/31 No
Management Co. Ltd.Shenzhen Unifortune Supply Chain
818.30 USD 2021/6/21 2022/12/31 No
Management Co. Ltd.Guizhou Huajinrun Technology Co.
381.15 USD 2022/1/1 2025/12/31 No
Ltd.Guizhou Huajinrun Technology Co.
157.50 USD 2022/1/1 2025/12/31 No
Ltd.
314Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Whether
Guarantee Start date Expiry date the
Guarantor amount Currency of of guarantee
(RMB'0000) guarantee guarantee is
completed
Shenzhen Henglongtong
241.40 USD 2022/1/1 2025/12/31 No
Technology Co. Ltd.Shenzhen Henglongtong
99.75 USD 2022/1/1 2025/12/31 No
Technology Co. Ltd.AUJET INDUSTRY LIMITED 3227.63 USD 2021/11/10 2025/12/31 No
AUJET INDUSTRY LIMITED 40.18 USD 2021/11/10 2025/12/31 No
AUJET INDUSTRY LIMITED 1029.00 USD 2020/7/20 2025/12/31 No
Zhu Xinming 12446.00 CNY 2022/10/15 2023/10/14 No
Zhu Xinming 3399.49 CNY 2023/1/1 2023/12/31 No
Zhu Xinming 13249.19 CNY 2023/2/19 2024/2/18 No
Zhu Xinming 6860.00 CNY 2023/3/1 2024/2/28 No
Zhu Xinming 2330.54 CNY 2023/3/9 2024/3/8 No
Zhu Xinming 2156.00 CNY 2023/4/1 2023/9/30 No
Zhu Xinming 443.45 CNY 2023/1/13 2023/12/31 No
Zhu Xinming 44.05 CNY 2023/3/30 2023/12/31 No
Zhu Xinming 443.45 CNY 2023/4/14 2023/12/31 No
Zhu Xinming 44.05 CNY 2023/6/30 2023/12/31 No
Zhu Xinming 443.45 CNY 2023/7/14 2023/12/31 No
Zhu Xinming 44.05 CNY 2023/10/11 2023/12/31 No
Zhu Xinming 149.45 CNY 2023/10/13 2023/12/31 No
Zhu Xinming 44.05 CNY 2023/12/29 2023/12/31 No
Zhu Xinming 490.00 CNY 2023/2/28 2024/2/27 No
Zhu Xinming 5109.05 CNY 2023/1/1 2023/12/31 No
Zhu Xinming 252.63 CNY 2023/1/13 2023/12/31 No
Zhu Xinming 101.77 CNY 2023/1/13 2023/12/31 No
Zhu Xinming 203.63 CNY 2023/4/14 2023/12/31 No
Zhu Xinming 1862.90 CNY 2023/1/1 2023/12/31 No
Zhu Xinming 223.85 CNY 2023/2/17 2023/12/31 No
Zhu Xinming 93.12 CNY 2023/3/8 2023/12/31 No
Zhu Xinming 101.35 CNY 2023/5/19 2023/12/31 No
315Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Whether
Guarantee Start date Expiry date the
Guarantor amount Currency of of guarantee
(RMB'0000) guarantee guarantee is
completed
Zhu Xinming 93.12 CNY 2023/6/8 2023/12/31 No
Zhu Xinming 93.12 CNY 2023/9/8 2023/12/31 No
Zhu Xinming 62.25 CNY 2023/12/7 2023/12/31 No
Zhu Xinming 137.20 CNY 2024/11/1 2026/10/30 No
Hu Zehong 7006.02 CNY 2024/7/15 2029/7/14 No
Liang Ruiling Dai Yaojin 2024/7/15 2025/12/31 No
Suiyong Rongxin Asset
2450.00 CNY 2018/1/1 2025/6/30 No
Management Co. Ltd.Suiyong Rongxin Asset
2842.00 CNY 2018/1/1 2024/12/31 No
Management Co. Ltd.Shenzhen Henglongtong Electronic
Technology Co. Ltd. Guizhou
Huajinrun Technology Group Co.Ltd. Huaying Gaokede Electronic 2022/1/1 2025/12/31 No
735.00 CNY
Technology Co. Ltd. and Huaying
Gaokelong Electronic Technology
Co.Ltd.Shenzhen Baili Yongxing
2018/1/1 2023/12/31 No
Technology Co. Ltd.Shenzhen Henglongtong Electronic
Technology Co. Ltd. Guizhou
Huajinrun Technology Group Co.Ltd. Huaying Gaokede Electronic 2022/1/1 2025/12/31 No
488.37 CNY
Technology Co. Ltd. and Huaying
Gaokelong Electronic Technology
Co.Ltd.Shenzhen Baili Yongxing
2018/1/1 2023/12/31 No
Technology Co. Ltd.Shenzhen Henglongtong Electronic
Technology Co. Ltd. Guizhou 552.72 CNY
2022/1/1 2025/12/31 No
Huajinrun Technology Group Co.Ltd. Huaying Gaokede Electronic
316Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Whether
Guarantee Start date Expiry date the
Guarantor amount Currency of of guarantee
(RMB'0000) guarantee guarantee is
completed
Technology Co. Ltd. and Huaying
Gaokelong Electronic Technology
Co.Ltd.Shenzhen Baili Yongxing
2018/1/1 2023/12/31 No
Technology Co. Ltd.Chuzhou Hanshang Electric
4533.96 CNY 2021/5/20 2024/5/19 No
Appliance Co. Ltd.Shenzhen Qianhai Datang
441.00 CNY 2024/11/17 2025/11/16 No
Technology Co. Ltd.
(5) Loans from/to related parties
Amount
Related party Currency Start date Due date
(RMB'0000)
Borrowing
Overseas Chinese Town Holdings
81091.00 CNY 2022/1/10 2025/1/9
Company
Overseas Chinese Town Holdings
50000.00 CNY 2022/5/19 2025/5/18
Company
Overseas Chinese Town Holdings
70000.00 CNY 2022/5/26 2025/5/25
Company
Chuzhou Hanshang Electric Appliance
12862.50 CNY 2024/1/1 2024/12/31
Co. Ltd.Chuzhou Hanshang Electric Appliance
2450.00 CNY 2024/8/3 2025/12/31
Co. Ltd.Chuzhou Hanshang Electric Appliance
980.00 CNY 2024/2/14 2025/2/13
Co. Ltd.Econ Technology 1914.00 CNY 2024/3/20 2025/3/19
Kangkong Venture Capital (Shenzhen)
245.00 CNY 2022/7/21 2025/7/18
Co. Ltd.Beijing Xuri Shengxing Technology Co.
228.67 CNY 2024/12/1 2025/11/30
Ltd.Total 219771.17
317Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Amount
Related party Currency Start date Due date
(RMB'0000)
Lending
Dongguan Guankang Yuhong Investment
2223.19 CNY 2022/8/6 2025/9/25
Co. Ltd.Dongguan Guankang Yuhong Investment
17376.81 CNY 2022/8/6 2025/9/25
Co. Ltd.Chuzhou Kangxin Health Industry
13288.00 CNY 2022/12/18 2025/12/21
Development Co. Ltd.Chuzhou Kangxin Health Industry
2000.00 CNY 2022/12/18 2025/12/21
Development Co. Ltd.Chuzhou Kangxin Health Industry
735.00 CNY 2023/1/5 2025/12/21
Development Co. Ltd.Chuzhou Kangxin Health Industry
59.45 CNY 2023/1/5 2025/12/21
Development Co. Ltd.Chuzhou Kangxin Health Industry
1240.03 CNY 2022/12/18 2025/12/21
Development Co. Ltd.Chuzhou Kangxin Health Industry
16758.00 CNY 2023/3/22 2025/12/21
Development Co. Ltd.Chuzhou Kangxin Health Industry
1359.26 CNY 2023/3/21 2025/12/21
Development Co. Ltd.Chuzhou Kangxin Health Industry
109.95 CNY 2023/3/21 2025/12/21
Development Co. Ltd.Chuzhou Kangxin Health Industry
1344.36 CNY 2023/3/22 2025/12/21
Development Co. Ltd.Chuzhou Kangxin Health Industry
2080.72 CNY 2023/10/18 2025/12/21
Development Co. Ltd.Chuzhou Kangxin Health Industry
562.97 CNY 2023/12/22 2025/12/21
Development Co. Ltd.Sichuan Chengrui Real Estate Co. Ltd. 14724.50 CNY 2022/1/21 2025/4/15
Yantai Kangyue Investment Co. Ltd. 12852.70 CNY 2020/12/16 2022/11/5
Yantai Kangyun Industrial Development
10020.00 CNY 2021/11/23 2025/3/31
Co. Ltd.Yantai Kangyun Industrial Development
949.00 CNY 2022/8/25 2025/3/31
Co. Ltd.Yantai Kangyun Industrial Development
1394.00 CNY 2022/8/25 2025/3/31
Co. Ltd.
318Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Amount
Related party Currency Start date Due date
(RMB'0000)
Yantai Kangyun Industrial Development
323.00 CNY 2022/8/25 2025/3/31
Co. Ltd.Yantai Kangyun Industrial Development
564.00 CNY 2022/8/25 2025/3/31
Co. Ltd.Yantai Kangyun Industrial Development
1020.00 CNY 2022/3/17 2025/3/31
Co. Ltd.Yantai Kangyun Industrial Development
3400.00 CNY 2022/5/23 2025/3/31
Co. Ltd.Yantai Kangyun Industrial Development
2500.00 CNY 2022/6/1 2025/3/31
Co. Ltd.Yantai Kangyun Industrial Development
2430.00 CNY 2022/11/15 2025/3/31
Co. Ltd.Chongqing Lanlv Moma Real Estate
18843.00 CNY 2020/11/25 2023/11/24
Development Co. Ltd.Sichuan Hongxinchen Real Estate
19879.55 CNY 2022/9/15 2025/2/27
Development Co. Ltd.Econ Technology 18315.11 CNY 2023/12/20 2025/12/20
Econ Technology 4996.58 CNY 2023/12/21 2025/12/20
Chongqing Liangshan Industrial
5000.00 CNY 2024/9/29 2025/03/28
Investment Co. Ltd.Chongqing Liangshan Industrial
5000.00 CNY 2024/9/30 2025/03/28
Investment Co. Ltd.Total 181349.18
(6) Remuneration for key management personnel
The current year Last year
Item
(RMB'0000) (RMB'0000)
Total remuneration 805.91 805.08
3. Balance of amount receivable and payable by related parties
(1) Receivables
Ending balance Beginning balance
Related party Provision for bad Provision for
Book balance Book balance
debts bad debts
Accounts receivable:
319Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Ending balance Beginning balance
Related party Provision for bad Provision for
Book balance Book balance
debts bad debts
Shenzhen Yaode Technology Co.
147734652.41147734652.41145562210.29145562210.29
Ltd. and its subsidiaries
HOHO ELECTRICAL &
FURNITURE CO. 124609404.13 93990064.79 124378346.69 51863807.49
LIMITED
Overseas Chinese Town Holdings
Company and its subsidiaries and 72276979.60 31123407.93 100590722.52 15162359.88
associates
Chuzhou Hanshang Electric
47717928.47973445.7338536165.52786137.78
Appliance Co. Ltd.Shenzhen Kanghongxing
38344115.3938344115.3939226376.6439214097.96
Intelligent Technology Co. Ltd.Anhui Kaikai Shijie E-commerce
26677417.752692954.1560994542.801879460.35
Co. Ltd. and its subsidiaries
Shenzhen Jielunte Technology
Co. Ltd. and its subsidiaries and 13210046.28 269484.95 8538236.25 173326.20
associates
Shenzhen KONKA E-display Co.
1367734.51143334.282038868.80130671.94
Ltd. and its subsidiaries
Subtotal of other related parties 14486876.29 4766671.12 36068461.04 4978006.25
Total 486425154.83 320038130.75 555933930.56 259750078.15
Financing accounts
receivable/Notes receivable:
Chuzhou Hanshang Electric
Appliance Co. Ltd. and its 320000.00 10000000.00
subsidiaries
Chuzhou Hanshang Electric
Appliance Co. Ltd. and its 10000000.00
subsidiaries
Total 320000.00 20000000.00
Dividends receivable:
Shenzhen Jielunte Technology
941482.38
Co. Ltd.Total 941482.38
320Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Ending balance Beginning balance
Related party Provision for bad Provision for
Book balance Book balance
debts bad debts
Other receivables:
Konka Huanjia Environmental
1744736434.491744736434.49
Technology Co. Ltd.Chongqing Lanlv Moma Real
236698102.3117677972.27235830613.25
Estate Development Co. Ltd.Yantai Kangyue Investment Co.
171069706.4573609697.70170712417.5618682100.00
Ltd.Chongqing Liangshan Industrial
100858150.671008581.51
Investment Co. Ltd.Jiangxi Meiji Enterprise Co. Ltd. 93512640.31 93512640.31 93512640.31 93512640.31
Dai Rongxing 89251531.41 89251531.41 86150945.74 86150945.74
Shenzhen Kanghongxing
39130497.1739044321.6239888921.6439888921.64
Intelligent Technology Co. Ltd.Overseas Chinese Town Holdings
Company and its subsidiaries and 31319550.72 21246621.58 31185288.31 20608710.48
associates
Huanjia Group Co. Ltd. 25083675.53 24582002.02
Dongguan Guankang Yuhong
22000000.002200000.0022000000.00660000.00
Investment Co. Ltd.HOHO ELECTRICAL &
FURNITURE CO. 2522359.24 2522359.24 2485213.19 1612406.32
LIMITED
Hu Zehong 816533.42 171132.24 1395042.29 135057.89
Zhu Xinming 1844316.15 184800.48
Subtotal of other related parties 3840950.86 71393.70 145049.83 2993.94
Total 2537600773.20 2085237486.55 708389807.65 285835778.34
Prepayments:
Konka Sungo Smart Energy
48239426.1948239426.19
(Zhejiang) Co. Ltd.Overseas Chinese Town Holdings
Company and its subsidiaries and 113278.60 238185.12 113278.60
associates
321Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Ending balance Beginning balance
Related party Provision for bad Provision for
Book balance Book balance
debts bad debts
Subtotal of other related parties 429661.79 7764.63 429661.79
Total 48782366.58 245949.75 48782366.58
Other current assets:
Chuzhou Kangxin Health Industry
428413383.27396256021.05
Development Co. Ltd.Yantai Kangyun Industry
Development Co. Ltd. and its 274833800.04 256452466.70
subsidiaries
Sichuan Hongxinchen Real Estate
244320945.73228799064.74
Development Co. Ltd.Shandong Econ Technology Co.
233116949.03233116949.03
Ltd. and its subsidiaries
Dongguan Guankang Yuhong
229643489.20224838028.99
Investment Co. Ltd.Sichuan Chengrui Real Estate
180452915.47168476988.84
Co. Ltd.Total 1590781482.74 1507939519.35
Contract assets:
Overseas Chinese Town Holdings
Company and its subsidiaries and 401807.84 8196.88
associates
Total 401807.84 8196.88
(2) Payables
Related party Ending book balance Beginning bookbalance
Accounts payable:
Shenzhen Jielunte Technology Co. Ltd.and its subsidiaries and associates 65368676.00 33987442.17
Overseas Chinese Town Holdings
Company and its subsidiaries and 42040127.95 28693864.79
associates
Shenzhen KONKA E-display Co. Ltd. and
its subsidiaries 11078987.35 10343033.76
Chuzhou Hanshang Electric Appliance Co.Ltd. 8399596.80 43592692.34
Panxu Intelligence Co. Ltd. and its
subsidiaries 6343887.78 3558734.12
322Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Related party Ending book balance Beginning bookbalance
HOHO ELECTRICAL & FURNITURE
CO. LIMITED 5036570.10 10195877.56
Anhui Kaikai Shijie E-commerce Co. Ltd.and its subsidiaries 4326148.17 4614860.81
Korea Electric Group Co. Ltd. and its
subsidiaries 4374416.65
Subtotal of other related parties 28185129.54 62883215.09
Total 170779123.69 202244137.29
Notes payable:
Shenzhen Jielunte Technology Co. Ltd.and its subsidiaries 10327556.31 916829.48
Dongguan Kangjia New Materials
Technology Co. Ltd.. 1991363.46 4352821.66
Korea Electric Group Co. Ltd. and its
subsidiaries 1565908.77 4709353.26
Panxu Intelligence Co. Ltd. and its
subsidiaries 1962738.39
Total 13884828.54 11941742.79
Contract liabilities/other current
liabilities/other non-current liabilities:
Overseas Chinese Town Holdings
Company and its subsidiaries and 65821382.94 43675417.58
associates
AUJET INDUSTRY LIMITED 3851376.79
Shenzhen Kangjia Jiapin Intelligent
Electrical Apparatus Technology Co. Ltd. 4449842.05
Shenzhen KONKA E-display Co. Ltd. and
its subsidiaries 915488.73 28903907.67
Shenzhen Aimijiakang Technology Co.Ltd. 1030654.81
Subtotal of other related parties 501429.98 1659155.59
Total 75539520.49 75269135.65
Other payables:
Chuzhou Hanshang Electric Appliance Co.Ltd. 207983241.15 195705860.89
Shandong Econ Technology Co. Ltd. and
its subsidiaries 21696728.31 42146282.34
Overseas Chinese Town Holdings
Company and its subsidiaries and 22391131.89 23291255.06
associates
Guizhou Jiading Mining Management
Investment Co. Ltd. 18000000.00
Central SOEs Industrial Investment Fund
for Poverty-stricken Area (Jiangxi)
Industrial Investment Fund Partnership 14400000.00 9600000.00
(L.P.)
323Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Related party Ending book balance Beginning bookbalance
Dongguan Guankang Yuhong Investment
Co. Ltd. 12100893.94
Beijing Xuri Shengxing Technology Co.Ltd. 2675533.68 2536047.85
Kangkong Venture Capital (Shenzhen) Co.Ltd. 2523701.42 2523500.05
Subtotal of other related parties 16551142.92 11526313.92
Total 318322373.31 287329260.11
XIV. Commitments and Contingencies
1. Significant commitments
(1) Capital commitments
Year beginning
Item Year end balance
balance
Large amount contract 173593973.84 295615545.67
Total 173593973.84 295615545.67
(2) Other commitments
As of December 31 2024 there were no other significant commitments for the Group to
disclose.
2. Contingencies
The Group's material contingencies requiring disclosure are set out below:
(1) Before the Company acquired Jiangxi Konka Jiangxi Konka and its subsidiaries
Xinfeng Microcrystalline and Jiangxi High Transparent Substrate (formerly known as Nano
Microcrystalline) provided joint and several liability guarantee for the loans from Nanchang
Rural Commercial Bank Co. Ltd. to Jiangxi Xinxin Jian'an Engineering Jiangxi Zhongyi
Decorative Material and Jiangxi Shanshi Science and Technology related parties of former
controlling shareholders of Jiangxi Konka and Nanchang Rural Commercial Bank Co. Ltd.then transferred the claims to China Great Wall AMC Jiangxi Branch. For the failure of
Jiangxi Xinxin Jian'an Engineering Jiangxi Zhongyi Decorative Material and Jiangxi Shanshi
to repay the borrowings on time China Great Wall AMC Jiangxi Branch filed a lawsuit
requesting Jiangxi Xinxin Jian'an Engineering Jiangxi Zhongyi Decorative Material and
Jiangxi Shanshi to repay the loan principal amounting to RMB300 million and the liquidated
damage and interest arising from it and guarantors Jiangxi Konka Jiangxi High Transparent
Substrate and Xinfeng Microcrystalline to bear joint and several liability for such debts.On October 31 2019 the Jiangxi Provincial Higher People's Court ruled in the first
324Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
instance that Jiangxi Xinxin Jiangxi Zhongyi Decoration and Jiangxi Shanshi should repay
the loan principal totaling RMB300 million interest and liquidated damages to Great Wall
Assets Jiangxi Branch within 10 days from the effective date of the judgment; Jiangxi Konka
ZHU Xinming LENG Sumin Nano Microcrystalline and Xinfeng Microcrystalline shall be
jointly and severally liable for the repayment of all the debts determined by the above
judgment. The defendants were dissatisfied with the judgment of first instance and have filed
an appeal and the Supreme People's Court has accepted the case. On March 24 2021 the
Supreme People's Court of the People's Republic of China issued a ruling: I. Revoke the Civil
Judgment (2018) GMC No. 110 of Jiangxi Higher People's Court; II. The case shall be
remanded to the Jiangxi Higher People's Court for retrial. As of the date of issuance of this
report the first instance of the retrial was decided an appeal had been filed and the second
instance of the retrial is in progress.The original De Facto Controller of Jiangxi Konka ZHU Xinming and his spouse Leng
Sumin Jiangxi Xinzixin Real Estate Co. Ltd. ZHU Zilong ZHU Qingming and ZENG
Xiaohong as guarantors provided a total of approximately RMB 143 million of real estate
mortgage guarantee to Great Wall AMC for the above loans and ZHU Xinming and LENG
Sumin also provided joint liability guarantees. In order to avoid the adverse impact of this
case on the Company the Company has agreed in the acquisition agreement signed with
Jiangxi Konka Xinfeng Microcrystalline and Nano Microcrystalline that the contingent debts
incurred by Jiangxi Konka Xinfeng Microcrystalline and Nano Microcrystalline shall be born
by the original shareholders of Jiangxi Konka in the form of joint and several liability. Jiangxi
Xinzixin Real Estate Co. Ltd. has held a total of approximately RMB243 million of real
estate assets as the case of the anti-guarantee mortgage to the Company and went through the
mortgage registration procedures.
(2) The amount of the subject matter involved in the dispute between Sichuan Shuwu
Guangrun Logistics Co. Ltd. (plaintiff) and the Company's subsidiary Dongguan Konka
(defendant) over a purchase and sales contract is RMB 122.8346 million. As of the date of
issuance of this report the case was under trial.
(3) The amount of the subject matter involved in the dispute between Micro Crystal
Transfer Group Ltd. (the Applicant) and the Company's subsidiary Chongqing
Optoelectronics Technology (The Respondent) over the equipment purchase and sales
contract is RMB 36.3967 million. As of the date of issuance of this report the case was under
trial.
(4) The amount of the subject matter involved in the dispute between Heilongjiang
Xinda New Material Co. Ltd. (plaintiff) and the Company's subsidiary Anhui Konka
(defendant) over the purchase and sales contract is RMB 134.4402 million. As of the date of
issuance of this report the case was under trial.
325Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
XV. Subsequent Events after the Balance Sheet Date
1. Important non-adjusting matters
As of the date of issuance of this financial report the Group has no significant non-
adjusting matters that need to be disclosed.
2. Sales return
As of the date of this financial report the Group had no material sales returns.
3. Notes to other subsequent events after the balance sheet date
On April 8 2025 the Company received a notice from our controlling shareholder OCT
Group Co. Ltd. stating that in order to promote professional integration among central
enterprises and optimize resource allocation we plan to have other central enterprise groups
implement professional integration for the Company.This integration may result in a change in the controlling shareholder of the Company but
the actual controller remains the State owned Assets Supervision and Administration Commission
of the State Council.XVI. Other Key Matters
As of the date of issuance of this financial report the Group has no other significant matters.XVII. Notes to the Main Items of the Financial Statements of the Parent Company
1. Accounts receivable
(1) Accounts receivable listed by aging portfolio
Beginning book
Aging Ending book balance
balance
Within one year (inclusive) 2478867657.14 1206382965.89
1-2 years 269445994.78 1471518725.52
2-3 years 25878752.19 116480162.93
3-4 years 42081276.61 58805217.49
4-5 years 10744497.16 122821401.69
Over 5 years 848569108.69 806589292.93
Total 3675587286.57 3782597766.45
(2) Accounts receivable listed by withdrawal methods for bad debts
Ending balance
Type
Book balance Provision for bad debts Book value
326Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Provision
Percentage
Amount Amount percentage
(%)
(%)
Provision set aside for
bad debts by the single 751101547.52 20.43 751041259.51 99.99 60288.01
item
Provision set aside for
bad debts by portfolio
Of which: Aging
262862169.327.15141146416.7553.70121715752.57
portfolio
Related party
2661623569.7372.412661623569.73
combination
Subtotal of portfolio 2924485739.05 79.57 141146416.75 4.83 2783339322.30
Total 3675587286.57 100.00 892187676.26 24.27 2783399610.31
(Continued)
Beginning balance
Book balance Provision for bad debts
Type Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
Provision set aside for
bad debts by the single 752763517.97 19.90 708873222.27 94.17 43890295.70
item
Provision set aside for
bad debts by portfolio
Of which: Aging
355972586.889.41166216118.6746.69189756468.21
portfolio
Related party
2673861661.6070.692673861661.60
combination
Subtotal of portfolio 3029834248.48 80.10 166216118.67 5.49 2863618129.81
Total 3782597766.45 100.00 875089340.94 23.13 2907508425.51
1) Provision set aside for bad debts of accounts receivable by single item
Description Beginning balance Ending balance
327Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Provision Reasons for
Provision for Provision for
Book balance Book balance percentage the
bad debts bad debts
(%) provision
CEFC Shanghai Not expected
International 299136676.70 293153943.17 298855950.30 298855950.30 100.00 to be
Group Limited recoverable
Hongtu
Not expected
Sanpower
200000000.00 180000000.00 200000000.00 200000000.00 100.00 to be
Technology
recoverable
Co. Ltd.Zhongfu
Not expected
Tiangong
71389096.65 53541822.49 71289096.65 71289096.65 100.00 to be
Construction
recoverable
Group Co. Ltd.CCCC First
Not expected
Harbor
55438105.00 55438105.00 55438105.00 55438105.00 100.00 to be
Engineering
recoverable
Company Ltd.China Energy Not expected
Electric Fuel 50000000.00 50000000.00 49993564.16 49993564.16 100.00 to be
Co. Ltd. recoverable
Shenzhen
Kanghongxing Not expected
Intelligent 36900685.94 36900685.94 36211057.55 36211057.55 100.00 to be
Technology recoverable
Co. Ltd.Expected to
Others 39898953.68 39838665.67 39313773.86 39253485.85 99.85 be difficult
to recover
Total 752763517.97 708873222.27 751101547.52 751041259.51 99.99 —
2) Provision for bad debts for accounts receivable made as per portfolio
* In the portfolio accounts receivable of provision for expected credit loss made by
aging
Ending balance
Aging Provision for Provision
Book balance
bad debts percentage (%)
328Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Ending balance
Aging Provision for Provision
Book balance
bad debts percentage (%)
Within 1 year 108768640.03 2218880.24 2.04
1-2 years 637438.49 63871.34 10.02
2-3 years 174611.00 39619.24 22.69
3-4 years 41165814.00 26708380.13 64.88
4-5 years 739858.10 739858.10 100.00
Over 5 years 111375807.70 111375807.70 100.00
Total 262862169.32 141146416.75 53.70
* In the portfolio accounts receivable of provision for expected credit loss made by
other methods
Ending balance
Aging Provision for Provision
Book balance
bad debts percentage (%)
Related party
2661623569.73
combination
Total 2661623569.73
(3) Provision for bad debts of accounts receivable set aside recovered or
reclassified in the current year
Change in the current year
Type Beginning balance Recovered or
Provision
reversed
Provision for bad debts of
875089340.9464806200.318632763.58
accounts receivable
Total 875089340.94 64806200.31 8632763.58
(Continued)
Change in the current year
Type Ending balance
Charge-off or write-off Others
Provision for bad debts of
39075101.41892187676.26
accounts receivable
Total 39075101.41 892187676.26
(4) Accounts receivable actually written off in the current year
329Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Item Amount written off
Accounts receivable written off 39075101.41
(5) Top five accounts receivable and contract assets in the Ending balance
categorized by debtors
The total amount of accounts receivable with top five Ending balance categorized by
debtors in the current year was RMB 2510779476.99 accounting for 68.31% of the total
Ending balance of accounts receivable. The total Ending balance of provision for bad debts
correspondingly set aside was RMB 498855950.30.
2. Other receivables
Item Ending balance Beginning balance
Interest receivable 6325400.49
Dividends receivable 397729468.60 395209709.13
Other receivables 7812366963.81 7560988861.81
Total 8210096432.41 7962523971.43
2.1 Interest receivable
(1) Classification of interest receivable
Item Ending balance Beginning balance
Time deposit 6325400.49
Total 6325400.49
2.2 Dividends receivable
The investee Ending balance Beginning balance
Hong Kong Konka Co. Ltd. 117729468.60 115209709.13
Suining Konka Industrial Park 280000000.00 280000000.00
Development Co. Ltd.Total 397729468.60 395209709.13
2.3 Other receivables
(1) Classified by account nature
Nature of fund Ending book balance Beginning book balance
Intercourse funds among
7470528350.519069786800.21
subsidiaries
Energy-saving subsidies receivable 141549150.00 141549150.00
330Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Nature of fund Ending book balance Beginning book balance
Intercourse funds with other related
2217059558.78235267733.09
parties
Deposit and margin 11203961.90 12721943.88
Others 51145919.15 99060310.98
Total 9891486940.34 9558385938.16
(2) Other receivables listed by aging
Aging Ending book balance Beginning book balance
Within one year (inclusive) 2833825882.55 5210348063.16
1-2 years 2791206932.00 2145922239.93
2-3 years 2093828942.23 198105811.44
3-4 years 198020662.24 439082181.54
4-5 years 438628738.59 1004762554.22
Over 5 years 1535975782.73 560165087.87
Total 9891486940.34 9558385938.16
(3) Classified presentation of other receivables by provisioning methods of bad
debts
Ending balance
Book balance Provision for bad debts
Type Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
Provision set aside for
bad debts by the single 2346639698.77 23.72 2030143279.98 86.51 316496418.79
item
Provision set aside for
bad debts by portfolio
Of which: Aging
59556884.460.6041789999.2370.1717766885.23
portfolio
Low Risk Combination 14762006.60 0.15 7186697.32 48.68 7575309.28
Related party
7470528350.5175.527470528350.51
combination
Subtotal of portfolio 7544847241.57 76.28 48976696.55 0.65 7495870545.02
Total 9891486940.34 100.00 2079119976.53 21.02 7812366963.81
331Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
(Continued)
Beginning balance
Book balance Provision for bad debts
Type Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
Provision set aside for
bad debts by the single 2110298248.95 22.08 1958251651.39 92.80 152046597.56
item
Provision set aside for
bad debts by portfolio
Of which: Aging
84338231.390.8832163233.7538.1452174997.64
portfolio
Low Risk Combination 16543239.09 0.17 6982191.21 42.21 9561047.88
Related party
7347206218.7376.877347206218.73
combination
Subtotal of portfolio 7448087689.21 77.92 39145424.96 0.53 7408942264.25
Total 9558385938.16 100.00 1997397076.35 20.90 7560988861.81
1) Provision set aside for bad debts of other receivables by portfolio
Ending balance
Aging Provision for Provision
Book balance
bad debts percentage (%)
Within 1 year 2596770491.35 97657.39
1-2 years 2612304310.50 1496969.47 0.06
2-3 years 2054396641.91 502609.89 0.02
3-4 years 72198065.40 1036781.06 1.44
4-5 years 122337965.60 32522750.00 26.58
Over 5 years 86839757.73 13319928.74 15.34
Total 7544847241.57 48976696.55 0.65
2) Provision set aside for bad debts of other receivables by the general expected
credit loss model
Provision for Phase I Phase II Phase III Total
bad debts
332Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Expected
credit loss Expected credit
Expected during the loss during the
credit loss for whole whole outstanding
the next 12 outstanding maturity (with
months maturity credit
(without credit impairment)
impairment)
Balance as of
841697.0138303727.951958251651.391997397076.35
January 1 2024
Balance as of
January 1 2024
in the current year
-- Transferred to
-305034.59305034.59
Phase II
-- Transferred to
Phase III
-- Reclassified
under Phase II
-- Reclassified
under Phase I
Provision in the
97657.3913546978.7472605569.9786250206.10
current year
Recovery in the
536662.421545915.20713941.382796519.00
current year
Charge-off in the
current year
Write-off in the
1730786.921730786.92
current year
Other changes
Balance as of
December 31 97657.39 48879039.16 2030143279.98 2079119976.53
2024
Remarks: the first stage is that credit risk has not increased significantly since initial
recognition. For other receivables with an aging portfolio and a low-risk portfolio within one
year the loss provision is measured according to the expected credit losses in the next 12
months.
333Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
The second stage is that credit risk has increased significantly since initial recognition
but credit impairment has not yet occurred. For other receivables with an aging portfolio and a
low-risk portfolio that exceed one year the loss provision is measured based on the expected
credit losses for the entire duration.The third stage is the credit impairment after initial confirmation. For other receivables
of credit impairment that have occurred the loss provision is measured according to the credit
losses that have occurred throughout the duration.
(4) Provision for bad debts of other receivables set aside recovered or reclassified
in the current year
Change in the current year
Type Beginning balance Recovered or
Provision
reversed
Provision for bad debts
1997397076.3586250206.102796519.00
of other receivables
Total 1997397076.35 86250206.10 2796519.00
(Continued)
Change in the current year
Type Charge-off or write- Ending balance
Others
off
Provision for bad debts
1730786.922079119976.53
of other receivables
Total 1730786.92 2079119976.53
(5) Other receivables actually written off in the current year
Item Amount written off
Other accounts receivable written off 1730786.92
(6) Other receivables with top five year-end balances categorized by debtors
The total amount of other receivables with top five ending balance categorized by
debtors in the current year was RMB 6823271100.47 accounting for 68.98% of the total
ending balance of other receivables. The total ending balance of provision for bad debts
correspondingly set aside was RMB 1744736434.49.
334Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
3. Long-term equity investments
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in
7825394811.83689680000.007135714811.837156825933.98781480000.006375345933.98
subsidiaries
Investment in
2256836610.99590635945.271666200665.722279596484.20301754900.041977841584.16
associates
Total 10082231422.82 1280315945.27 8801915477.55 9436422418.18 1083234900.04 8353187518.14
(1) Investment in subsidiaries
Beginning Changes in the current year Ending
Beginning
balance of Increase in Decrease in Provision set Ending balance balance of the
The investee balance
provision for the the aside for Others (Book value) provision for
(Book value)
impairment investment investment impairment impairment
Konka Ventures 2550000.00 2550000.00
Anhui Konka 122780937.98 122780937.98
Konka Electronic
300000000.00300000000.00
Material
Konka Unifortune 15300000.00 15300000.00
335Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Beginning Changes in the current year Ending
Beginning
balance of Increase in Decrease in Provision set Ending balance balance of the
The investee balance
provision for the the aside for Others (Book value) provision for
(Book value)
impairment investment investment impairment impairment
Wankaida 10000000.00 10000000.00
Dongguan Konka 274783988.91 274783988.91
Konka Europe 3637470.00 3637470.00
Telecommunication
360000000.00360000000.00
Technology
Development of
science and 100000000.00 100000000.00
technology industry
Anhui Tongchuang 779702612.22 779702612.22
Kangjiatong 30749800.00 30749800.00
Pengrun Technology 25500000.00 25500000.00
Beijing Konka
200000000.00200000000.00
Electronic
Konka Circuit 437050000.00 303702721.18 740752721.18
Hong Kong Konka 781828.61 781828.61
Konka Investment 500000000.00 500000000.00
Electronic 1000000000.00 1000000000.00
336Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Beginning Changes in the current year Ending
Beginning
balance of Increase in Decrease in Provision set Ending balance balance of the
The investee balance
provision for the the aside for Others (Book value) provision for
(Book value)
impairment investment investment impairment impairment
Technology
Konka Huanjia 91800000.00
Shanghai Konka 40000000.00 40000000.00
Jiangxi Konka 689680000.00 689680000.00
Shenzhen Nianhua 30000000.00 30000000.00
Shenzhen Konka
100000000.00100000000.00
Semiconductor
Ji'an Konka 50000.00 50000.00
Suining Konka
200000000.00200000000.00
Industrial Park
Konka Ronghe 5100000.00 5100000.00
Suining Electronic
Technological 200000000.00 200000000.00
Innovation
Shenzhen Chuangzhi
10000000.0010000000.00
Electrical Appliances
Chongqing 933333333.33 466666666.67 1400000000.00
337Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Beginning Changes in the current year Ending
Beginning
balance of Increase in Decrease in Provision set Ending balance balance of the
The investee balance
provision for the the aside for Others (Book value) provision for
(Book value)
impairment investment investment impairment impairment
Optoelectronic
Technology
Kowin Memory
192520000.00192520000.00
(Shenzhen)
Ningbo Kanghanrui
90000000.0090000000.00
Electric Appliances
Konka Intelligent
510.00510.00
Manufacturing
Suining Jiarun
10000000.0010000000.00
Property
Yibin Kangrun 67000000.00 67000000.00
Hainan Konka
9205452.939205452.93
Technology
Konka Cross-border
50000000.0050000000.00
(Hebei)
Konka Central China 30000000.00 30000000.00
Guizhou Kanggui
28000000.0028000000.00
Materials
338Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Beginning Changes in the current year Ending
Beginning
balance of Increase in Decrease in Provision set Ending balance balance of the
The investee balance
provision for the the aside for Others (Book value) provision for
(Book value)
impairment investment investment impairment impairment
Nantong Kanghai 15300000.00 15300000.00
Jiangxi Konka High-
50000000.0050000000.00
tech Park
Shangrao Konka
Electronic
30000000.0030000000.00
Technology
Innovation
Xi'an Kanghong
12000000.0012000000.00
Technology Industry
Xi'an Konka
Intelligent 50000000.00 50000000.00
Technology
Songyang Konka
30000000.0030000000.00
Intelligent
Konka North China 30000000.00 30000000.00
Total 6375345933.98 781480000.00 770369387.85 10000510.00 7135714811.83 689680000.00
Remarks: The decrease in the provision for impairment in the current year due to the loss of control by the Company's subsidiary Konka Huanjia in the
bankruptcy liquidation in the current year is transferred to accounting under the equity method.
339Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
(2) Investment in associates
Changes in the current year
Beginning Profit or loss of
Beginning Changes in
balance of investment
The investee balance (book Increase in the Decrease other
provision for recognized by
value) investment Investment comprehensive
impairment the equity
income
method
Anhui Kaikai Shijie E-commerce Co.
17493847.46-11219047.96
Ltd.Kunshan Kangsheng Investment
112914774.5161337050.93-3336356.30
Development Co. Ltd.Shanxi Silk Road Cloud Intelligent
5187588.48-1719653.88
Tech Co. Ltd.Shenzhen Kanghongxing Intelligent
5158909.06
Technology Co. Ltd.Shenzhen Zhongkang Beidou
Technology Co. Ltd.Shenzhen Yaode Technology Co. Ltd. 214559469.35
Wuhan Tianyuan Environmental
512729351.1145219787.67
Protection Co. Ltd.Chuzhou Konka Technology Industry
Development Co. Ltd.
340Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Changes in the current year
Beginning Profit or loss of
Beginning Changes in
balance of investment
The investee balance (book Increase in the Decrease other
provision for recognized by
value) investment Investment comprehensive
impairment the equity
income
method
Chuzhou Kangjin Health Industrial
136166304.62-43880778.79
Development Co. Ltd.Nantong Kangjian Technology
Industrial Park Operations and 5625680.96 -623472.05
Management Co. Ltd.Chuzhou Kangxin Health Industry
8277052.29-2073946.32
Development Co. Ltd.Dongguan Guankang Yuhong
Investment Co. Ltd.Econ Technology 928660408.13 81806510.02 -17225679.93
Dongguan Kangjia New Materials
3856971.32-625775.53
Technology Co. Ltd..Chongqing E2info Technology Co.
185922140.288322706.15
Ltd.Yantai Kangyun Industrial
Development Co. Ltd.
341Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Changes in the current year
Beginning Profit or loss of
Beginning Changes in
balance of investment
The investee balance (book Increase in the Decrease other
provision for recognized by
value) investment Investment comprehensive
impairment the equity
income
method
E3info (Hainan) Technology Co. Ltd. 8574609.73
Shenzhen Kangjia Jiapin Intelligent
Electrical Apparatus Technology Co. 7090590.47 -1194072.40
Ltd.Shenzhen KONKA E-display Co. Ltd. 15355334.74 9388796.88 118274.81
Chongqing Yuanlv Benpao Real Estate
Co. Ltd.Shenzhen Kangpeng Digital
1770021.01-459254.09
Technology Co. Ltd.Wuhan Kangtang Information
25757222.60-9903560.82
Technology Co. Ltd.Sichuan Chengrui Real Estate Co. Ltd.Sichuan Hongxinchen Real Estate
2459686.45
Development Co. Ltd.Shenzhen Kangyue Enterprise Co. Ltd. 230011.61
Konka Huanjia Environmental
342Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Changes in the current year
Beginning Profit or loss of
Beginning Changes in
balance of investment
The investee balance (book Increase in the Decrease other
provision for recognized by
value) investment Investment comprehensive
impairment the equity
income
method
Technology Co. Ltd.Total 1977841584.16 301754900.04 61337050.93 -29330307.37 118274.81
(Continued)
Changes in the current year
Ending
Cash dividends
Provision set Ending balance balance of theThe investee Changes in other or profits
aside for Others (book value) provision for
equities declared to be
impairment impairment
distributed
Anhui Kaikai Shijie E-commerce Co.
6274799.50
Ltd.Kunshan Kangsheng Investment
7350000.0040891367.28
Development Co. Ltd.Shanxi Silk Road Cloud Intelligent
3467934.60
Tech Co. Ltd.Shenzhen Kanghongxing Intelligent 5158909.06
343Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Changes in the current year
Ending
Cash dividends
Provision set Ending balance balance of the
The investee Changes in other or profits
aside for Others (book value) provision for
equities declared to be
impairment impairment
distributed
Technology Co. Ltd.Shenzhen Zhongkang Beidou
Technology Co. Ltd.Shenzhen Yaode Technology Co. Ltd. 214559469.35
Wuhan Tianyuan Environmental
-1641801.6810465181.53545842155.57
Protection Co. Ltd.Chuzhou Konka Technology Industry
Development Co. Ltd.Chuzhou Kangjin Health Industrial
92285525.83
Development Co. Ltd.Nantong Kangjian Technology
Industrial Park Operations and 5002208.91
Management Co. Ltd.Chuzhou Kangxin Health Industry
6203105.97
Development Co. Ltd.Dongguan Guankang Yuhong
Investment Co. Ltd.
344Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Changes in the current year
Ending
Cash dividends
Provision set Ending balance balance of the
The investee Changes in other or profits
aside for Others (book value) provision for
equities declared to be
impairment impairment
distributed
Econ Technology 197081045.23 714353682.97 278887555.25
Dongguan Kangjia New Materials
3231195.79
Technology Co. Ltd..Chongqing E2info Technology Co.
301193.49194546039.92
Ltd.Yantai Kangyun Industrial
Development Co. Ltd.E3info (Hainan) Technology Co. Ltd. 4000000.00 4574609.73
Shenzhen Kangjia Jiapin Intelligent
Electrical Apparatus Technology Co. 5896518.07
Ltd.Shenzhen KONKA E-display Co. Ltd. 855000.00 24007406.43
Chongqing Yuanlv Benpao Real Estate
Co. Ltd.Shenzhen Kangpeng Digital
1310766.92
Technology Co. Ltd.Wuhan Kangtang Information 15853661.78
345Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Changes in the current year
Ending
Cash dividends
Provision set Ending balance balance of the
The investee Changes in other or profits
aside for Others (book value) provision for
equities declared to be
impairment impairment
distributed
Technology Co. Ltd.Sichuan Chengrui Real Estate Co. Ltd.Sichuan Hongxinchen Real Estate
2459686.45
Development Co. Ltd.Shenzhen Kangyue Enterprise Co. Ltd. 230011.61
Konka Huanjia Environmental
91800000.00
Technology Co. Ltd.Total -1340608.19 22670181.53 197081045.23 1666200665.72 590635945.27
346Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
4. Operating revenue and cost of sales
(1) Operating revenue and cost of sales
Amount incurred in the current year Amount incurred last year
Item
Income Cost Income Cost
Principal
1773409740.831863056897.601677401625.281810055838.49
activity
Other 134714183.27 66145019.39 170593467.51 71483083.62
Total 1908123924.10 1929201916.99 1847995092.79 1881538922.11
(2) Information in relation to the trade price apportioned to the residual contract performance
obligation
The amount of revenue corresponding to the performance obligations that have been signed but have
not been performed or fully performed at the end of the current year is RMB 4201968.00 of which RMB
4201968.00 is expected to be recognized as revenue in 2025.
5. Return on investment
Amount incurred in Amount incurred
Item
the current year last year
Long-term equity investment income calculated by the
cost method
Returns on long-term equity investments calculated by
-29330307.37-87914423.54
the equity method
Return on investment arising from the disposal of long-
78445940.06197370626.59
term equity investments
Investment income from financial assets held for trading
4240444.629383976.00
during the holding period
Investment income from disposal of financial assets
-26511417.25-55975275.41
held for trading
Interest income from debt investments during the
5688905.136532591.02
holding period
Income from the derecognition of financial assets at
-1332512.07
amortized cost (“-” for loss)
Conversion of long-term equity investments accounted
574780174.75
for by the equity method to financial assets
Gains from debt restructuring 500000.00
Total 31201053.12 644677669.41
347Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
XVIIII Supplementary Materials to the Financial Statements
1. Items and amounts of non-recurring profit or loss in the current year
Amount of the current
Item Note
year
Profit or losses on disposal of non-current assets (including the portion
100956248.61
offset for provisions for asset impairment)
Government grants included in profit and loss of the current period
(except for government subsidies that are closely related to the
Company's normal business operation comply with national policies 105918680.20
and are enjoyed in accordance with defined criteria and have a
continuing impact on the Company's profit or loss)
Gain or loss on fair-value changes in financial assets and liabilities held
by a non-financial enterprise as well as on disposal of financial assets
-366040020.57
and liabilities (exclusive of the effective portion of hedges that arise in
the Company’s ordinary course of business)
Dispossession surcharge to non-financial institutions included in the
current profit and loss
Gain/Loss on entrusting others with investments or asset management
Gain or loss on loan entrustment 92549311.40
Losses on assets resulted from force majeure factors such as natural
disasters
Reversed portions of impairment allowances for receivables which are
38227600.55
tested individually for impairment
Gains arising from business combination when the investment cost is
less than the recognized fair value of net assets of the investee
Current net profit or loss of subsidiaries acquired in business
combination under the same control from period-beginning to
combination date
Profit/Loss on non-monetary asset swap
Gain or loss on debt restructuring -459737.22
One-time costs incurred by an enterprise as a result of the
discontinuation of a related operating activity such as expenses for
relocating employees
One-time impact on profit or loss for the current period due to
adjustments in tax accounting and other laws and regulations
One-time recognition of share-based payment expense due to
348Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Amount of the current
Item Note
year
cancellation and modification of equity incentive plans
Cash-settled share-based payments gains and losses arising from
changes in the fair value of employee compensation payable after the
date of exercisability
Gain/loss on change in fair value of investment property subject to
follow-up measurement at fair value method
Income from transactions at significantly unfair prices
Profits or losses arising from contingencies unrelated to the normal
operation of the Company's business
Custodian fees earned from entrusted operation
Non-operating revenue and expense other than the above -114510494.06
Other gains and losses that meet the definition of non-recurring
gain/loss
Subtotal -143358411.09
Less: Income tax effects -23300674.38
Non-controlling interests effects (net of tax) -29973121.57
Total -90084615.14 —
The items that are not listed in the Explanatory Announcement No. 1 on Information Disclosure by
Companies Offering Securities to the Public - Non-recurring Profit or Loss (Revised in 2023) but
recognized by the Company as non-recurring profit or loss items and involving significant amounts and
listed non-recurring profit or loss items recognized as recurring profit or loss items
Item Amount Reason
Government grants which are closely related
to the normal business of the company and
Tax rebates on software 4681629.92 which are in accordance with national policies
and certain standard quota or quantitative
amount
2. Return on net assets and earnings per share
Weighted average EPS (RMB/share)
Profit for the reporting period rate of return on net Basic earnings per Diluted earnings
assets (%) share per share
Net profit attributable to ordinary -82.56 -1.3686 -1.3686
349Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2024 to December 31 2024
(Amounts are expressed in RMB unless otherwise stated)
Weighted average EPS (RMB/share)
Profit for the reporting period rate of return on net Basic earnings per Diluted earnings
assets (%) share per share
shareholders of the parent company
Net profit attributable to ordinary
shareholders of the parent company
-80.30-1.3312-1.3312
before non-recurring gains and
losses
Konka Group Co. Ltd.Board of Directors
April 15 2025
350
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