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 Email 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