Konka Group Co. Ltd.FINANCIAL REPORT
For the Six Months Ended 30 June 2024
（Un-audited）
Contents
Auditor’s Report
Balance Shhet
Income Statement
Cash Flow Statement
Statement of Changes in Owners' Equity
Notes to Accounting Statements
Legal representative: Cao Shiping
Head of the accounting work:Nie Yong
Head of the accounting department: Ping Heng
English Translation for Reference Only. Should there be any discrepancy between the two versions
the Chinese version shall prevail.
1I Independent Auditor’s Report
Are these interim financial statements audited by an independent auditor
□ Yes √ No
The interim financial statements of the Company have not been audited by an independent auditor.II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Konka Group Co. Ltd. 30 June 2024
Unit: RMB
Item 30 June 2024 1 January 2024
Current assets:
Monetary assets 5514370579.43 6506359577.02
Settlement reserve
Interbank loans granted
Held-for-trading financial assets 294937209.31 469636700.78
Derivative financial assets
Notes receivable 301987637.11 533171949.15
Accounts receivable 1856961440.23 1726545973.08
Accounts receivable financing 203279738.30 173396326.14
Prepayments 139219299.00 165454311.51
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 829528634.29 989121067.51
Including: Interest receivable 7770148.68 6681258.01
Dividends receivable 14705644.62 941482.38
Financial assets purchased under resale agreements
Inventories 3404537028.08 3249897700.98
Including: Data resource
Contract assets 2712594.37 2190385.93
Assets held for sale
Current portion of non-current assets
Other current assets 2361815002.60 2359159468.75
Total current assets 14909349162.72 16174933460.85
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 5500299082.95 5566483863.29
Investments in other equity instruments 23841337.16 23841337.16
Other non-current financial assets 1985908473.73 2009676398.00
2Investment property 1516938003.43 1470226723.87
Fixed assets 5050425327.42 5218297745.16
Construction in progress 844964613.42 860899498.68
Productive living assets
Oil and gas assets
Right-of-use assets 199746862.53 197054423.17
Intangible assets 1044478407.72 1087386015.34
Including: Data resource
Development costs
Including: Data resource
Goodwill 22196735.11 22196735.11
Long-term prepaid expense 490136795.26 518919223.71
Deferred income tax assets 1439587794.69 1426573982.16
Other non-current assets 1296144671.61 1248328806.16
Total non-current assets 19414668105.03 19649884751.81
Total assets 34324017267.75 35824818212.66
Current liabilities:
Short-term borrowings 6510087630.95 6390592056.27
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 981928381.95 990482927.20
Accounts payable 2940551760.72 2726831675.97
Advances from customers 311664.91
Contract liabilities 326016727.91 527975160.12
Financial assets sold under repurchase agreements
Customer deposits and interbank deposits
Payables for acting trading of securities
Payables for underwriting of securities
Employee benefits payable 198487964.48 304733103.63
Taxes payable 51565332.83 214417135.87
Other payables 1762366179.22 1922791905.14
Including: Interest payable
Dividends payable
Handling charges and commissions payable
Reinsurance payables
Liabilities directly associated with assets held for sale
Current portion of non-current liabilities 3600939407.57 5314147396.36
Other current liabilities 46276463.29 54330715.75
Total current liabilities 16418531513.83 18446302076.31
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 7205788337.63 7779150079.88
3Bonds payable 4796908712.83 2426992578.67
Including: Preferred shares
Perpetual bonds
Lease liabilities 165941212.56 160218818.92
Long-term payables 4957346.58 6135734.07
Long-term employee benefits payable 4661069.67 4718466.37
Provisions 323500578.73 304519839.80
Deferred income 408691107.22 425135237.90
Deferred income tax liabilities 139226712.39 185026165.27
Other non-current liabilities 205172360.96 179996351.33
Total non-current liabilities 13254847438.57 11471893272.21
Total liabilities 29673378952.40 29918195348.52
Owners’ equity:
Share capital 2407945408.00 2407945408.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 521710300.12 526499506.76
Less: Treasury stock
Other comprehensive income -14125068.08 -13443558.44
Specific reserve 6615537.36 4657488.24
Surplus reserves 1244180364.24 1244180364.24
General reserve
Retained earnings 386980133.30 1474561975.85
Total equity attributable to owners of the Company as the
4553306674.945644401184.65
parent
Non-controlling interests 97331640.41 262221679.49
Total owners’ equity 4650638315.35 5906622864.14
Total liabilities and owners’ equity 34324017267.75 35824818212.66
Legal representative: Cao Shiping
CFO: Nie Yong
Head of the financial department: Ping Heng
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 June 2024 1 January 2024
Current assets:
Monetary assets 3694617771.19 4739026071.80
Held-for-trading financial assets 294937209.31 469636700.78
Derivative financial assets
Notes receivable 222896079.58 212545745.69
Accounts receivable 3106912552.06 2907508425.51
Accounts receivable financing 642758.36
Prepayments 5424580131.75 3050914644.86
Other receivables 8002724273.44 7962523971.43
4Including: Interest receivable 7098359.12 6325400.49
Dividends receivable 410736627.52 395209709.13
Inventories 299147504.71 74359735.29
Including: Data resource
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 1838906798.09 1776247847.16
Total current assets 22885365078.49 21192763142.52
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 8332374129.98 8353187518.14
Investments in other equity instruments 17940215.36 17940215.36
Other non-current financial assets 396353137.96 396353137.96
Investment property 877638798.38 896398058.58
Fixed assets 397097652.85 408039474.28
Construction in progress 11367352.75 10456702.05
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 40888560.99 44546041.59
Including: Data resource
Development costs
Including: Data resource
Goodwill
Long-term prepaid expense 39527817.85 43352655.77
Deferred income tax assets 1186943851.11 1186943851.11
Other non-current assets 43471716.30 42958066.97
Total non-current assets 11343603233.53 11400175721.81
Total assets 34228968312.02 32592938864.33
Current liabilities:
Short-term borrowings 2422190833.33 2344154349.99
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 49606194.38 83813428.75
Accounts payable 6941296340.84 6459535317.41
Advances from customers
Contract liabilities 1760530391.45 943718573.19
Employee benefits payable 33454862.51 65273780.70
Taxes payable 7818682.23 9069845.15
Other payables 4393887450.33 3471748973.76
5Including: Interest payable
Dividends payable
Liabilities directly associated with assets held for sale
Current portion of non-current liabilities 3452517761.24 5206842165.89
Other current liabilities 10393884.82 9728362.56
Total current liabilities 19071696401.13 18593884797.40
Non-current liabilities:
Long-term borrowings 5981642333.84 6655411621.10
Bonds payable 4796908712.83 2426992578.67
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits payable
Provisions 201328037.54 201607949.06
Deferred income 42136017.50 40966821.50
Deferred income tax liabilities 26128671.60 69803544.47
Other non-current liabilities 46390412.64 45682878.82
Total non-current liabilities 11094534185.95 9440465393.62
Total liabilities 30166230587.08 28034350191.02
Owners’ equity:
Share capital 2407945408.00 2407945408.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 329941716.72 341229750.75
Less: Treasury stock
Other comprehensive income -1399371.64 -1399371.64
Specific reserve
Surplus reserves 1260024039.76 1260024039.76
Retained earnings 66225932.10 550788846.44
Total owners’ equity 4062737724.94 4558588673.31
Total liabilities and owners’ equity 34228968312.02 32592938864.33
3. Consolidated Income Statement
Unit: RMB
Item H1 2024 H1 2023
1. Revenue 5412530372.47 10472061171.94
Including: Operating revenue 5412530372.47 10472061171.94
Interest income
Insurance premium income
Handling charge and commission income
2. Costs and expenses 6381475426.88 11506953501.55
Including: Cost of sales 5009969615.02 10079343784.11
6Interest expense
Handling charge and commission expense
Surrenders
Net insurance claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 64692935.11 42718966.53
Selling expense 495376454.26 558536665.53
Administrative expense 315946020.02 390244567.77
R&D expense 214578026.81 237033893.11
Finance costs 280912375.66 199075624.50
Including: Interest expense 407018728.71 432772700.64
Interest income 116244724.79 123908981.38
Add: Other income 56768387.57 137917215.41
Return on investment (“-” for loss) 5047444.22 826829010.88
Including: Share of profit or loss of joint ventures and
-41296057.12-30242661.05
associates
Income from the derecognition of financial assets at
-1728018.83
amortized cost (“-” for loss)
Exchange gain (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) -179800523.76 -132580077.43
Credit impairment loss (“-” for loss) -163079433.18 -140192679.36
Asset impairment loss (“-” for loss) -92012866.95 -15283496.76
Asset disposal income (“-” for loss) 590329.38 64713.62
3. Operating profit (“-” for loss) -1341431717.13 -358137643.25
Add: Non-operating income 15773523.89 17325617.18
Less: Non-operating expense 6155804.84 4326608.02
4. Profit before tax (“-” for loss) -1331813998.08 -345138634.09
Less: Income tax expense -51275843.13 -16710667.58
5. Net profit (“-” for net loss) -1280538154.95 -328427966.51
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for
-1280538154.95-328427966.51
net loss)
5.1.2 Net profit from discontinued operations (“-”
for net loss)
5.2 By ownership
5.2.1 Net profit attributable to shareholders of the
-1087581842.55-193240232.33
Company as the parent (“-” for loss)
5.2.2 Net profit attributable to non-controlling interests
-192956312.40-135187734.18
(“-” for loss)
6. Other comprehensive income net of tax -2253474.92 -2932583.82
Attributable to owners of the Company as the parent -681509.64 4837.39
76.1 Items that will not be reclassified to profit or loss
6.1.1 Changes caused by remeasurements on defined
benefit schemes
6.1.2 Other comprehensive income that will not be
reclassified to profit or loss under the equity method
6.1.3 Changes in the fair value of investments in other
equity instruments
6.1.4 Changes in the fair value arising from changes in
own credit risk
6.1.5 Other
6.2 Items that will be reclassified to profit or loss -681509.64 4837.39
6.2.1 Other comprehensive income that will be
-83919.23
reclassified to profit or loss under the equity method
6.2.2 Changes in the fair value of investments in other
debt obligations
6.2.3 Other comprehensive income arising from the
reclassification of financial assets
6.2.4 Credit impairment allowance for investments in
other debt obligations
6.2.5 Reserve for cash flow hedges
6.2.6 Differences arising from the translation of foreign
-597590.414837.39
currency-denominated financial statements
6.2.7 Other
Attributable to non-controlling interests -1571965.28 -2937421.21
7. Total comprehensive income -1282791629.87 -331360550.33
Attributable to owners of the Company as the parent -1088263352.19 -193235394.94
Attributable to non-controlling interests -194528277.68 -138125155.39
8. Earnings per share
8.1 Basic earnings per share -0.4517 -0.0803
8.2 Diluted earnings per share -0.4517 -0.0803
Legal representative: Cao Shiping
CFO: Nie Yong
Head of the financial department: Ping Heng
4. Income Statement of the Company as the Parent
Unit: RMB
Item H1 2024 H1 2023
1. Operating revenue 915335790.52 671342472.97
Less: Cost of sales 909780380.96 682543280.18
Taxes and surcharges 8494960.13 2825863.63
Selling expense 50967849.89 120609233.66
Administrative expense 93947054.64 136536029.86
R&D expense 13571658.64 15002427.03
Finance costs 216389535.25 158153694.90
Including: Interest expense 378248970.66 415373817.97
8Interest income 153071010.77 181172038.86
Add: Other income 7605313.33 45777006.94
Return on investment (“-” for loss) 32020268.53 749413182.91
Including: Share of profit or loss of joint ventures and
9290355.87-17573675.23
associates
Income from the derecognition of financial assets at
-152875.26
amortized cost (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) -174699491.47 -145356925.98
Credit impairment loss (“-” for loss) -12086636.46 -22515556.31
Asset impairment loss (“-” for loss) -5180066.67 -5669387.21
Asset disposal income (“-” for loss) -110.13 18634.76
2. Operating profit (“-” for loss) -530156371.86 177338898.82
Add: Non-operating income 2512547.44 1209609.70
Less: Non-operating expense 593962.79 2143784.68
3. Profit before tax (“-” for loss) -528237787.21 176404723.84
Less: Income tax expense -43674872.87 64758360.48
4. Net profit (“-” for net loss) -484562914.34 111646363.36
4.1 Net profit from continuing operations (“-” for net
-484562914.34111646363.36
loss)
4.2 Net profit from discontinued operations (“-” for net
loss)
5. Other comprehensive income net of tax
5.1 Items that will not be reclassified to profit or loss
5.1.1 Changes caused by remeasurements on defined
benefit schemes
5.1.2 Other comprehensive income that will not be
reclassified to profit or loss under the equity method
5.1.3 Changes in the fair value of investments in other
equity instruments
5.1.4 Changes in the fair value arising from changes in
own credit risk
5.1.5 Other
5.2 Items that will be reclassified to profit or loss
5.2.1 Other comprehensive income that will be
reclassified to profit or loss under the equity method
5.2.2 Changes in the fair value of investments in other
debt obligations
5.2.3 Other comprehensive income arising from the
reclassification of financial assets
5.2.4 Credit impairment allowance for investments in
other debt obligations
5.2.5 Reserve for cash flow hedges
5.2.6 Differences arising from the translation of foreign
9currency-denominated financial statements
5.2.7 Other
6. Total comprehensive income -484562914.34 111646363.36
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Item H1 2024 H1 2023
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of
4267852047.5910257069599.77
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 139455404.70 114042516.44
Cash generated from other operating activities 210684546.43 434232897.74
Subtotal of cash generated from operating activities 4617991998.72 10805345013.95
Payments for commodities and services 3502746057.91 9023089761.99
Net increase in loans and advances to customers
Net increase in deposits in the central bank and in
interbank loans granted
Payments for claims on original insurance contracts
Net increase in interbank loans granted
Interest handling charges and commissions paid
Policy dividends paid
Cash paid to and for employees 862103567.56 961152003.48
Taxes paid 226961849.89 267360124.35
Cash used in other operating activities 465518888.49 755293229.37
Subtotal of cash used in operating activities 5057330363.85 11006895119.19
Net cash generated from/used in operating activities -439338365.13 -201550105.24
2. Cash flows from investing activities:
Proceeds from disinvestment 28078887.19 889008792.86
Return on investment 17454288.86 102906034.84
1 0Net proceeds from the disposal of fixed assets
1648546.245504209.67
intangible assets and other long-lived assets
Net proceeds from the disposal of subsidiaries and
18818889.67
other business units
Cash generated from other investing activities 23144979.61 429959598.68
Subtotal of cash generated from investing activities 70326701.90 1446197525.72
Payments for the acquisition of fixed assets intangible
383427125.49541154096.54
assets and other long-lived assets
Payments for investments
Net increase in pledged loans granted
Net payments for the acquisition of subsidiaries and
other business units
Cash used in other investing activities 2127401.00 471154667.83
Subtotal of cash used in investing activities 385554526.49 1012308764.37
Net cash generated from/used in investing activities -315227824.59 433888761.35
3. Cash flows from financing activities:
Capital contributions received 391891.90 600000.05
Including: Capital contributions by non-controlling
391891.90600000.05
interests to subsidiaries
Borrowings raised 9415119545.51 6347967876.40
Cash generated from other financing activities 354016478.39 270299841.72
Subtotal of cash generated from financing activities 9769527915.80 6618867718.17
Repayment of borrowings 9327233269.01 5423409343.95
Interest and dividends paid 270910689.62 417032889.60
Including: Dividends paid by subsidiaries to
126628.99735000.00
non-controlling interests
Cash used in other financing activities 720237854.70 486741862.16
Subtotal of cash used in financing activities 10318381813.33 6327184095.71
Net cash generated from/used in financing activities -548853897.53 291683622.46
4. Effect of foreign exchange rates changes on cash and
7010247.7844134367.10
cash equivalents
5. Net increase in cash and cash equivalents -1296409839.47 568156645.67
Add: Cash and cash equivalents beginning of the period 5674784349.55 5461912010.90
6. Cash and cash equivalents end of the period 4378374510.08 6030068656.57
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item H1 2024 H1 2023
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of
1602584444.181612906405.48
services
Tax rebates 34492177.78 33601449.43
Cash generated from other operating activities 71344066.52 125639407.49
Subtotal of cash generated from operating activities 1708420688.48 1772147262.40
Payments for commodities and services 2021282615.27 1685690002.69
1 1Cash paid to and for employees 113835388.28 163714700.87
Taxes paid 22683808.32 6158152.38
Cash used in other operating activities 161079943.22 258237321.10
Subtotal of cash used in operating activities 2318881755.09 2113800177.04
Net cash generated from/used in operating activities -610461066.61 -341652914.64
2. Cash flows from investing activities:
Proceeds from disinvestment 7873623.97 377895533.73
Return on investment 13490000.00 45984167.78
Net proceeds from the disposal of fixed assets
20138.36463991.29
intangible assets and other long-lived assets
Net proceeds from the disposal of subsidiaries and
other business units
Cash generated from other investing activities 3388426673.22 2247236977.19
Subtotal of cash generated from investing activities 3409810435.55 2671580669.99
Payments for the acquisition of fixed assets intangible
17759814.7364727368.50
assets and other long-lived assets
Payments for investments 13000000.00 77400000.00
Net payments for the acquisition of subsidiaries and
other business units
Cash used in other investing activities 3417504221.91 1822125825.03
Subtotal of cash used in investing activities 3448264036.64 1964253193.53
Net cash generated from/used in investing activities -38453601.09 707327476.46
3. Cash flows from financing activities:
Capital contributions received
Borrowings raised 7632107916.66 5060000000.00
Cash generated from other financing activities 5179636847.74 4539539207.19
Subtotal of cash generated from financing activities 12811744764.40 9599539207.19
Repayment of borrowings 8221706940.23 3708306940.22
Interest and dividends paid 289317772.25 439526690.78
Cash used in other financing activities 4969550553.21 5451482339.89
Subtotal of cash used in financing activities 13480575265.69 9599315970.89
Net cash generated from/used in financing activities -668830501.29 223236.30
4. Effect of foreign exchange rates changes on cash and
3479996.516131671.92
cash equivalents
5. Net increase in cash and cash equivalents -1314265172.48 372029470.04
Add: Cash and cash equivalents beginning of the period 4263319288.76 3833613544.22
6. Cash and cash equivalents end of the period 2949054116.28 4205643014.26
1 27. Consolidated Statements of Changes in Owners’ Equity
H1 2024
Unit: RMB
H1 2024
Equity attributable to owners of the Company as the parent
Other equity G
Les
instruments en O
s:
er t
Item Pre Per Tre Other Non-controlling
al h Total owners’ equity
Share capital ferr pet Ot Capital reserves asur comprehensive Specific reserve Surplus reserves Retained earnings Subtotal interests
re e
ed ual he y income
se r
sha bon r stoc
rv
res ds k
e
1. Balance as at the end of the
2407945408.00526499506.76-13443558.444657488.241244180364.241474561975.855644401184.65262221679.495906622864.14
period of prior year
Add: Adjustment for change in
accounting policy
Adjustment for correction of
previous error
Other adjustments
2. Balance as at the beginning of the
2407945408.00526499506.76-13443558.444657488.241244180364.241474561975.855644401184.65262221679.495906622864.14
Reporting Period
3. Increase/ decrease in the period
-4789206.64-681509.641958049.12-1087581842.55-1091094509.71-164890039.08-1255984548.79
(“ -” for decrease)
3.1 Total comprehensive income -681509.64 -1087581842.55 -1088263352.19 -194528277.68 -1282791629.87
3.2 Capital increased and reduced
-4789206.64-4789206.6429083500.4624294293.82
by owners
3.2.1 Ordinary shares increased by
391891.90391891.90
owners
1 33.2.2 Capital increased by holders
of other equity instruments
3.2.3 Share-based payments
included in owners’ equity
3.2.4 Other -4789206.64 -4789206.64 28691608.56 23902401.92
3.3 Profit distribution
3.3.1 Appropriation to surplus
reserves
3.3.2 Appropriation to general
reserve
3.3.3 Appropriation to owners
(or shareholders)
3.3.4 Other
3.4 Transfers within owners’
equity
3.4.1 Increase in capital (or
share capital) from capital reserves
3.4.2 Increase in capital (or
share capital) from surplus reserves
3.4.3 Loss offset by surplus
reserves
3.4.4 Changes in defined
benefit schemes transferred to
retained earnings
3.4.5 Other comprehensive
income transferred to retained
earnings
3.4.6 Other
3.5 Specific reserve 1958049.12 1958049.12 554738.14 2512787.26
1 43.5.1 Increase in the period 2537402.71 2537402.71 589725.35 3127128.06
3.5.2 Used in the period 579353.59 579353.59 34987.21 614340.80
3.6 Other
4. Balance as at the end of the
2407945408.00521710300.12-14125068.086615537.361244180364.24386980133.304553306674.9497331640.414650638315.35
Reporting Period
H1 2023
Unit: RMB
H1 2023
Equity attributable to owners of the Company as the parent
Other equity O
instruments Less: Spec Gene t
Item Other Non-controlling
Perp Treasu ific ral h Total owners’ equity
Share capital Prefer O Capital reserves comprehensive Surplus reserves Retained earnings Subtotal interests
etual ry reser reser e
red th income
bond stock ve ve r
shares er
s
1. Balance as at the end of the
2407945408.00365247361.05-14265181.631244180364.243637291770.337640399721.99820973239.938461372961.92
period of prior year
Add: Adjustment for change in
1576234.171576234.17136147.011712381.18
accounting policy
Adjustment for correction of
previous error
Other adjustments
2. Balance as at the beginning of
2407945408.00365247361.05-14265181.631244180364.243638868004.507641975956.16821109386.948463085343.10
the Reporting Period
3. Increase/ decrease in the period
72867671.024837.39-192680226.89-119807718.48-139649988.36-259457706.84
(“ -” for decrease)
3.1 Total comprehensive income 4837.39 -193240232.33 -193235394.94 -138125155.39 -331360550.33
3.2 Capital increased and 72867671.02 72867671.02 -789832.97 72077838.05
1 5reduced by owners
3.2.1 Ordinary shares increased by
600000.03600000.03
owners
3.2.2 Capital increased by holders
of other equity instruments
3.2.3 Share-based payments
included in owners’ equity
3.2.4 Other 72867671.02 72867671.02 -1389833.00 71477838.02
3.3 Profit distribution -735000.00 -735000.00
3.3.1 Appropriation to surplus
reserves
3.3.2 Appropriation to general
reserve
3.3.3 Appropriation to owners
-735000.00-735000.00
(or shareholders)
3.3.4 Other
3.4 Transfers within owners’
equity
3.4.1 Increase in capital (or
share capital) from capital reserves
3.4.2 Increase in capital (or
share capital) from surplus reserves
3.4.3 Loss offset by surplus
reserves
3.4.4 Changes in defined
benefit schemes transferred to
retained earnings
3.4.5 Other comprehensive
income transferred to retained
1 6earnings
3.4.6 Other
3.5 Specific reserve
3.5.1 Increase in the period
3.5.2 Used in the period
3.6 Other 560005.44 560005.44 560005.44
4. Balance as at the end of the
2407945408.00438115032.07-14260344.241244180364.243446187777.617522168237.68681459398.588203627636.26
Reporting Period
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2024
Unit: RMB
H1 2024
Other equity instruments O
t
Less:
Item Other comprehensive Specific h
Share capital Preferre Perpetua Capital reserves Treasury Surplus reserves Retained earnings Total owners’ equity
Other income reserve e
d shares l bonds stock
r
1. Balance as at the end of the period of prior year 2407945408.00 341229750.75 -1399371.64 1260024039.76 550788846.44 4558588673.31
Add: Adjustment for change in accounting policy
Adjustment for correction of previous error
Other adjustments
2. Balance as at the beginning of the Reporting
2407945408.00341229750.75-1399371.641260024039.76550788846.444558588673.31
Period
3. Increase/ decrease in the period (“-” for
-11288034.03-484562914.34-495850948.37
decrease)
3.1 Total comprehensive income -484562914.34 -484562914.34
1 73.2 Capital increased and reduced by owners -11288034.03 -11288034.03
3.2.1 Ordinary shares increased by owners
3.2.2 Capital increased by holders of other equity
instruments
3.2.3 Share-based payments included in owners’
equity
3.2.4 Other -11288034.03 -11288034.03
3.3 Profit distribution
3.3.1 Appropriation to surplus reserves
3.3.2 Appropriation to owners (or
shareholders)
3.3.3 Other
3.4 Transfers within owners’ equity
3.4.1 Increase in capital (or share capital)
from capital reserves
3.4.2 Increase in capital (or share capital)
from surplus reserves
3.4.3 Loss offset by surplus reserves
3.4.4 Changes in defined benefit schemes
transferred to retained earnings
3.4.5 Other comprehensive income
transferred to retained earnings
3.4.6 Other
3.5 Specific reserve
3.5.1 Increase in the period
3.5.2 Used in the period
3.6 Other
4. Balance as at the end of the Reporting Period 2407945408.00 329941716.72 -1399371.64 1260024039.76 66225932.10 4062737724.94
1 8H1 2023
Unit: RMB
H1 2023
Other equity instruments O
t
Less:
Item Other comprehensive Specific h
Share capital Preferred Perpetua Capital reserves Treasury Surplus reserves Retained earnings Total owners’ equity
Other income reserve e
shares l bonds stock
r
1. Balance as at the end of the period of prior
2407945408.00241044390.55-1500000.001260024039.761306066395.605213580233.91
year
Add: Adjustment for change in accounting
policy
Adjustment for correction of previous error
Other adjustments -6088070.45 -6088070.45
2. Balance as at the beginning of the Reporting
2407945408.00241044390.55-1500000.001260024039.761299978325.155207492163.46
Period
3. Increase/ decrease in the period (“-” for
72867671.02111646363.36184514034.38
decrease)
3.1 Total comprehensive income 111646363.36 111646363.36
3.2 Capital increased and reduced by owners 72867671.02 72867671.02
3.2.1 Ordinary shares increased by owners
3.2.2 Capital increased by holders of other
equity instruments
3.2.3 Share-based payments included in
owners’ equity
3.2.4 Other 72867671.02 72867671.02
3.3 Profit distribution
3.3.1 Appropriation to surplus reserves
1 93.3.2 Appropriation to owners (or
shareholders)
3.3.3 Other
3.4 Transfers within owners’ equity
3.4.1 Increase in capital (or share capital)
from capital reserves
3.4.2 Increase in capital (or share capital)
from surplus reserves
3.4.3 Loss offset by surplus reserves
3.4.4 Changes in defined benefit schemes
transferred to retained earnings
3.4.5 Other comprehensive income
transferred to retained earnings
3.4.6 Other
3.5 Specific reserve
3.5.1 Increase in the period
3.5.2 Used in the period
3.6 Other
4. Balance as at the end of the Reporting Period 2407945408.00 313912061.57 -1500000.00 1260024039.76 1411624688.51 5392006197.84
2 0Notes to the Financial Statements of Konka Group Co. Ltd.
For the Year from 1 January 2024 to 30 June 2024
(All amounts in RMB yuan unless otherwise stated)
I. Company Profile
1. Establishment
Konka Group Co. Ltd. (hereinafter referred to as “the Company” and the “Group” when including
subsidiaries) is a joint-stock limited company reorganized from the former Shenzhen Konka
Electronic Co. Ltd. in August 1991 upon approval of the People’s Government of Shenzhen
Municipality and has its ordinary shares (A-share and B-share) listed on Shenzhen Stock Exchange
with prior consent from the People’s Bank of China Shenzhen Special Economic Zone Branch. On
29 August 1995 the Company was renamed to “Konka Group Co. Ltd.” (Credibility code:
914403006188155783) with its main business electronic industry. And now the headquarters
locates in No. 28 of No. 12 of Keji South Rd. Science & Technology Park Yuehai Street Nanshan
District Shenzhen Guangdong Province.
2. Share capital
After the distribution of bonus shares allotments increased share capital and new shares issued over
the years as of 30 June 2024 the Company has issued a total of 2407945408.00 shares
(denomination of RMB1 per share) with a registered capital of RMB2407945408.00.
3. The nature of the company's business and main operating activities
The Group was mainly engaged in consumer electronics and semiconductor businesses conducting
the production and sales of colour TVs white goods optoelectronic display storage and printed
circuit Boards etc.
4. The financial statements contained herein have been approved for issue by the Board of Directors
of the Company on 29 August 2024.II. Consolidation scope
The Company has a total of 111 subsidiaries included in the consolidation scope including
Shenzhen Konka Electronics Technology Co. Ltd. Anhui Konka Electronic Co. Ltd. and
Dongguan Konka Electronic Co. Ltd. The consolidation scope of the Company for the Reporting
Period decreased by 5 households including Konka Huanjia Environmental Technology Co. Ltd.Shenzhen Wankaida Science and Technology Co. Ltd. etc. due to losing control for bankruptcy
and liquidation of subsidiaries or cancellation compared to the same period of last year.For details please refer to Note 8 “Changes in the consolidation scope” and Note 9 "Equity in
Other Entities".
21A check list of corporate names and their abbreviations mentioned in this Report
No. Corporate name Abbreviation
1 Shenzhen Konka Electronics Technology Co. Ltd. Electronics Technology
2 Nantong Haimen Konka Smart Technology Co. Ltd. Haimen Konka
3 Chengdu Konka Smart Technology Co. Ltd. Chengdu Konka Smart
4 Chengdu Konka Electronic Co. Ltd. Chengdu Konka Electronic
5 Nantong Hongdin Smart Technology Co. Ltd. Nantong Hongdin
Shenzhen Kangcheng Technology Innovation and Development
6 Shenzhen Kangcheng
Co. Ltd.
7 Xiaojia Technology Co. Ltd. Xiaojia Technology
8 Liaoyang Kangshun Smart Technology Co. Ltd. Liaoyang Kangshun Smart
9 Liaoyang Kangshun Renewable Resources Co. Ltd. Liaoyang Kangshun Renewable
10 Nanjing Konka Electronics Co. Ltd. Nanjing Konka
Chuzhou Konka Precision Intelligent Manufacturing Technology
11 Chuzhou Konka
Co. Ltd.
12 GuangDong XingDa HongYe Electronic Co. Ltd. XingDa HongYe
13 Shenzhen Konka Circuit Co. Ltd. Konka Circuit
14 Suining Konka Flexible Electronic Technology Co. Ltd. Konka Flexible Electronic
15 Suining Konka Hongye Electronics Co. Ltd. Konka Hongye Electronics
16 Boluo Konka Precision Technology Co. Ltd. Boluo Precision
17 Boluo Konka PCB Co. Ltd. Boluo Konka
18 Anhui Konka Tongchuang Electrical Appliances Co. Ltd. Anhui Tongchuang
19 Jiangsu Konka Smart Electrical Appliances Co. Ltd. Jiangsu Konka Smart
20 Anhui Konka Electrical Appliance Technology Co. Ltd. Anhui Electrical Appliance
21 Henan Frestec Refrigeration Appliance Co. Ltd. Frestec Refrigeration
22 Henan Frestec Electrical Appliances Co. Ltd. Frestec Electrical Appliances
23 Henan Frestec Household Appliances Co. Ltd. Frestec Household Appliances
24 Henan Frestec Smart Home Technology Co. Ltd. Frestec Smart Home
25 Shenzhen Konka Investment Holdings Co. Ltd. Konka Investment
26 Yibin Konka Technology Park Operation Co. Ltd. Yibin Konka Technology Park
22No. Corporate name Abbreviation
27 Shenzhen Konka Capital Equity Investment Management Co. Ltd. Konka Capital
28 Konka Suiyong Investment (Shenzhen) Co. Ltd. Konka Suiyong
29 Shenzhen Konka Shengxing Industrial Co. Ltd. Shengxing Industrial
30 Shenzhen Konka Zhitong Technology Co. Ltd. Zhitong Technology
31 Konka Electronic Material Technology (Shenzhen) Co. Ltd. Konka Electronic Material
32 Beijing Konka Electronic Co. Ltd. Beijing Konka Electronic
33 Tianjin Konka Technology Co. Ltd. Tianjin Konka
34 Suining Konka Industrial Park Development Co. Ltd. Suining Konka Industrial Park
Suining Electronic Technological
35 Suining Konka Electronic Technological Innovation Co. Ltd.
Innovation
36 Shanghai Konka Industrial Co. Ltd. Shanghai Konka
37 Yantai Kangjin Technology Development Co. Ltd. Yantai Kangjin
38 Shenzhen Konka Mobile Interconnection Technology Co. Ltd. Mobile Interconnection
39 Sichuan Konka Smart Terminal Technology Co. Ltd Sichuan Konka
40 Yibin Konka Smart Technology Co. Ltd. Yibin Smart
41 Shenzhen KONSEMI Co. Ltd. Shenzhen KONSEMI
42 Chongqing Konka Technology Development Co. Ltd. Chongqing Konka
43 Kowin Memory Technology (Shenzhen) Co. Limited Kowin Memory (Shenzhen)
44 Kowin Memory Technology (Hong Kong) Co. Limited Kowin Memory (Hong Kong)
45 Konka Xinyun Semiconductor Technology (Yancheng) Co. Ltd. Konka Xinyun Semiconductor
46 Konka Cross-border (Hebei) Technology Development Co. Ltd. Konka Cross-border (Hebei)
47 Shenzhen Nianhua Enterprise Management Co. Ltd. Shenzhen Nianhua
48 Konka Huazhong (Hunan) Technology Co. Ltd. Konka Huazhong
49 Shenzhen Wankaida Science and Technology Co. Ltd. Wankaida
Shenzhen Chuangzhi Electrical
50 Shenzhen Konka Chuangzhi Electrical Appliances Co. Ltd.
Appliances
51 Suining Jiarun Property Co. Ltd. Suining Jiarun Property
52 Anhui Konka Electronic Co. Ltd. Anhui Konka
53 Anhui Kangzhi Trade Co. Ltd. Kangzhi Trade
23No. Corporate name Abbreviation
54 Shenzhen Konka Telecommunications Technology Co. Ltd. Telecommunication Technology
55 Konka Mobility Co. Limited Konka Mobility
56 Dongguan Konka Electronic Co. Ltd. Dongguan Konka
57 Suining Konka Smart Technology Co. Ltd. Suining Konka Smart
Chongqing Optoelectronic
58 Chongqing Konka Optoelectronic Technology Co. Ltd.
Technology
59 Yibin Kangrun Environmental Technology Co. Ltd. Yibin Kangrun
60 Yibin Kangrun Medical Waste Centralized Treatment Co. Ltd. Yibin Kangrun Medical
61 Ningbo Khr Electric Appliance Co. Ltd. Ningbo Khr Electric Appliance
62 Jiangxi Konka New Material Technology Co. Ltd. Jiangxi Konka
Jiangxi High Transparent
63 Jiangxi High Transparent Substrate Material Technology 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 Technology Co. Ltd. Konka Huanjia (Henan)
67 Shanxi Konka Intelligent Appliance Co. Ltd. Shanxi Konka Intelligent
68 Shenzhen Konka Pengrun Technology & Industry Co. Ltd. Pengrun Technology
69 Jiaxin Technology Co. Ltd. Jiaxin Technology
70 Konka Ronghe Industrial Technology (Zhejiang) Co. Ltd. Konka Ronghe
71 Shenzhen Konka Unifortune Technology Co. Ltd. Konka Unifortune
72 Jiali International (Hong Kong) Limited Jiali International
73 Sichuan Kangjiatong Technology Co. Ltd. Kangjiatong
74 Jiangkang (Shanghai) Technology Co. Ltd. Jiangkang (Shanghai) Technology
75 Shenzhen Konka Intelligent Manufacturing Technology Co. Ltd. Konka Intelligent Manufacturing
76 Hainan Konka Technology Co. Ltd. Hainan Konka Technology
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
Chengdu Anren Konka Cultural and Creative Incubator
80 Chengdu Anren
Management Co. Ltd.
24No. Corporate name Abbreviation
81 Guiyang Konka Enterprise Service Co. Ltd. Konka Enterprise Service
82 Shenzhen Konka Eco-Development Investment Co. Ltd. Konka Eco-Development
83 Konka (Europe) Co. Ltd. Konka Europe
84 Hong Kong Konka Limited Hong Kong Konka
85 Hongdin International Trading Limited Hongdin Trading
86 Konka North America LLC Konka North America
87 Kanghao Technology Co. Ltd. Kanghao Technology
88 Hongdin Invest Development Limited Hongdin Invest
Chain Kingdom Memory
89 Chain Kingdom Memory Technologies Co. Limited
Technologies
Chain Kingdom Semiconductor
90 Chain Kingdom Semiconductor (Shaoxing) Co. Ltd.
(Shaoxing)
91 Hongjet (Hong Kong) Company Limited Hongjet
Chongqing Xinyuan
92 Chongqing Xinyuan Semiconductor Co. Ltd.
Semiconductor
93 Anlu Konka Industry Operation Service Co. Ltd. Anlu Konka
Shenzhen Kanghong Dongsheng Investment Partnership (Limited
94 Kanghong Dongsheng
Partnership)
Guizhou Konka New Material
95 Guizhou Konka New Material Technology Co. Ltd.
Technology
96 Guangdong Xinwei Semiconductor Co. Ltd. Guangdong Xinwei
Guizhou Kanggui Material
97 Guizhou Kanggui Material Technology Co. Ltd.
Technology
98 Nantong Kanghai Technology Industry Development Co. Ltd. Nantong Kanghai
99 Chongqing Kangyiyun Business Operation Management Co. Ltd. Chongqing Kangyiyun
100 Jiangxi Konka High-tech Park Operation and Management Co. Ltd. Jiangxi Konka High-tech Park
Shangrao Konka Electronic
101 Shangrao Konka Electronic Technology Innovation Co. Ltd.
Technology Innovation
102 Guizhou Konka New Energy Material Technology Co. Ltd. Guizhou Konka New Energy
103 Zhejiang Konka Electronics Co. Ltd. Zhejiang Konka Electronic
Zhejiang Konka Technology
104 Zhejiang Konka Technology Industry Development Co. Ltd.
Industry
105 Xi'an Konka Intelligent Appliance Co. Ltd. Xi'an Konka Intelligent
25No. Corporate name Abbreviation
106 Xi'an Konka Network Technology Co. Ltd. Xi'an Konka Network
Xi'an Kanghong Technology
107 Xi'an Kanghong Technology Industry Development Co. Ltd.
Industry
Xi'an Konka Intelligent
108 Xi'an Konka Intelligent Technology Development Co. Ltd.
Technology
109 Anhui Konka Low Carbon Technology Co. Ltd. Anhui Konka Low Carbon
Shenzhen Kanghong Xintong Investment Partnership (Limited
110 Kanghong Xintong
Partnership)
111 Songyang Konka Smart Industry Operation Management Co. Ltd. Songyang Industry Operation
112 Shenzhen Kangyan Technology Co. Ltd. Kangyan Technology
113 Konka Photovoltaic Technology Co. Ltd. Konka Photovoltaic Technology
114 Songyang Konka Intelligent Technology Development Co. Ltd. Songyang Konka Intelligent
115 Konka North China (Tianjin) Technology Co. Ltd. Konka North China
116 Shenzhen Konka Digital Technology Development Co. Ltd. Digital Technology
III. Basis for the Preparation of Financial Statements
1. Basic for the preparation
The Group's financial statements were prepared in accordance with the Accounting Standards for
Business Enterprises promulgated by the Ministry of Finance as well as guidelines on accounting
standards for business enterprises announcements on interpreting the accounting standards for
business enterprises and other related regulations (hereinafter collectively referred to as the
"Accounting Standards for Business Enterprises") as well as the disclosure regulations of the General
Provisions on Financial Reporting No. 15 for Companies Publicly Issuing Securities (revised in 2023)
by the China Securities Regulatory Commission (hereinafter referred to as the "CSRC").
2. Going-concern
The Group has evaluated its ability to continue as a going concern for 12 months since the end of
the Reporting Period and has not found any matters or situations that raise significant doubts
about its ability to continue as a going concern. Therefore the financial statements are presented
on a going concern basis.IV. Important Accounting Policies and Estimations
Specific accounting policies and accounting estimates: The specific accounting policies and
accounting estimates formulated by the Group according to the actual production and operation
26characteristics include provisions for bad debts of accounts receivable provisions for inventory
depreciation depreciation of fixed assets revenue recognition and measurement etc.
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Group are in compliance with in compliance with the
Accounting Standards for Business Enterprises which factually accurately and completely present
the Group’s financial positions on 30 June 2024 business results and cash flows and other relevant
information for H1 2024.
2. Fiscal Period
The Group’s fiscal year starts on January 1 and ends on December 31 of every year according to the
Gregorian calendar.
3. Operating Cycle
The normal operating cycle refers to the period from the purchase of assets for processing to the
realization of cash or cash equivalents by the Group. An operating cycle for the Group is 12 months
which is also the classification criterion for the liquidity of its assets and liabilities.
4. Recording Currency
The Group adopted RMB as the bookkeeping base currency.
5. Methodology for Determining Materiality Criteria and Basis for Selection
The Group prepares and discloses financial statements adhering to the principle of materiality. The
disclosures in the notes to the financial statements cover matters involving judgments about
materiality criteria the methods for determining materiality thresholds and the bases for selecting
these criteria:
Location of
Disclosures involving disclosure of this
Methodology for determining materiality criteria
materiality standard matter in the notes to
and basis for selection
judgments the present financial
statements
Significant individually bad Note VI-4. Accounts
Individual amount exceeding RMB50000000
debt provisioned receivables receivable (2)
Receivables with significant
amount of bad debt provision Note VI-4. Accounts
Individual amount exceeding RMB10 million
recovered or reversed during receivable (3)
the period
27Location of
Disclosures involving disclosure of this
Methodology for determining materiality criteria
materiality standard matter in the notes to
and basis for selection
judgments the present financial
statements
Significant write-offs of
Note VI-4. Accounts
receivables during the period Individual amount exceeding RMB10 million
receivable (4)
Write-offs
Significant accounts payable Note VI-26. Accounts
Individual amount exceeding RMB10 million
aged over 1 year payable
Significant receipts in advance Note VI-27;
and contractual Note VI-28;
liabilities/projected Individual amount exceeding RMB10 million
Note VI-31;
liabilities/other payables aged
Note VI-39
over 1 year
Note VI-16.Significant construction in Increase or decrease in a single asset during the year
Construction in
progress project or a balance exceeding RMB0.1 billion
progress (2)
6. Accounting Treatment Methods for Business Combinations under the Same Control or
not under the Same Control
(1) Business Combinations under the Same Control
A business combination involving entities under common control is a business combination in
which all of the combining enterprises are ultimately controlled by the same party or parties both
before and after the combination and that control is not transitory.As the combining party the assets and liabilities obtained by the Group in a business combination
under the same control shall be measured on the basis of their carrying value in the final controlling
party on the combining date. As for the balance between the carrying value of the net assets obtained
and the carrying value of the consideration paid by it (or aggregate nominal amount of shares
issued) the capital reserve shall be adjusted. If the capital reserve is not sufficient to be offset the
retained earnings shall be adjusted.
(2) Business Combinations not under the Same Control
A business combination involving entities not under common control is a business combination in
which all of the combining enterprises are not ultimately controlled by the same party or parties
28both before and after the combination.
As purchaser the identifiable assets liabilities and contingent liabilities of the acquiree acquired in
the business combination under different control shall be measured at fair value on the acquisition
date. The balance that the combined cost greater than the fair value share of the identifiable net
assets of the purchased party obtained in the combination shall be recognized as goodwill; When the
merger cost is less than the fair value share of the identifiable net assets of the acquiree acquired in
the merger the fair value of all identifiable assets liabilities and contingent liabilities acquired in the
merger and merger costs shall be reviewed first. After review if the merger cost is still less than the
fair value share of the identifiable net assets of the acquiree acquired in the merger the difference
shall be included in the non-operating income of the merger period.
7. Criteria for Judging Control and Methods for Preparing Consolidated Financial
Statements
The scope of consolidation for the consolidated financial statements of the Group is based on
control including the Company and all its subsidiaries (including enterprises divisible parts of
investees and structured entities controlled by the Company). The Group assesses control based
on whether it has power over the investee has exposure or rights to variable returns from its
involvement with the investee and has the ability to use its power over the investee to affect the
amount of the investor's returns.The financial statements of subsidiaries are adjusted in accordance with the accounting policies and
accounting period of the Group during the preparation of the consolidated financial statements
where the accounting policies and the accounting periods are inconsistent between the Group and
subsidiaries.The impact of internal transactions between the Company and its subsidiaries as well as between
subsidiaries and each other was offset in consolidation. The shares of the subsidiary's owner's
equity that do not belong to the parent Group and the shares of minority shareholders' equity in
current net profit and loss other comprehensive income and total comprehensive income shall be
respectively listed in the consolidated financial statement "Minority shareholders' equity minority
shareholders' profit and loss other comprehensive income that belongs to minority shareholders and
total comprehensive income that belongs to minority shareholders".For subsidiaries acquired through merger of enterprises under the same control their operating
results and cash flows are included in the consolidated financial statements from the beginning of
the current merger period. When preparing the comparative consolidated financial statements the
relevant items in the financial statements of the previous year shall be adjusted as if the consolidated
reporting entity had existed since the final controlling party began to control it.The treatment method of supplementary disclosure in consolidated financial statement for the
Reporting Period when the controlling right is acquired if the equity of the invested organization
29under the same control is successively obtained through several transactions and eventually the
enterprise merger is conducted. For example: At the occasion of the equity of the investee under the
same control is acquired step by step through multiple transactions and finally form the business
combination when preparing the consolidated statement it shall be deemed as the adjustment is
made in the current state when the final controlling party starts to control. And when compiling the
comparative report the assets and liabilities of the merged party shall be merged into the
comparative statement of the consolidated financial statements of the consolidated Group without
any earlier than the time when the Group and the merged party are under the control of the ultimate
controlling party and the combined net increased assets shall be adjusted to the relevant items under
owners' equity in the comparative statements. In order to avoid the re-calculation of the net assets
value of the merged party the long-term equity investment held by the Group before the merger
the confirmed relevant profit and loss on the same party with the Group and the merged party on the
date of acquisition of the original equity from the final control date to the merger date and changes
of other comprehensive income and other net assets shall offset the beginning retained earnings and
current profits and losses of the comparative statement period respectively.For subsidiaries acquired through business combination under the different control the operating
results and cash flow shall be included in the consolidated financial statements from the date when
the Group obtains the control right. When preparing the consolidated financial statements the
financial statements of the subsidiaries shall be adjusted on the basis of the fair value of the
identifiable assets liabilities and contingent liabilities determined on the acquisition date.The treatment method of supplementary disclosure in consolidated financial statement for the
Reporting Period when the controlling right is acquired if the equity of the invested organization
not under the same control is successively obtained through several transactions and eventually the
enterprise merger is conducted. For example: At the occasion of the equity of the investee under
different control is acquired step by step through multiple transactions and eventually form the
business combination when preparing the consolidated statement the equity of the investee held
before the purchase date is re-measured according to the fair value of the equity on the purchase date
and the difference between the fair value and its book value is included in the current investment
income. The equity of the acquiree held before the relevant purchase date involves other
comprehensive income under the equity method and other changes in owner's equity other than net
profit and loss other comprehensive income and profit distribution which are converted into
investment profit and loss in the current period of the purchase date except for other comprehensive
income arising from the remeasurement of defined benefit plans's net liabilities or changes in net
assets by the investee.The Group partially disposes of long-term equity investments in subsidiaries without losing control
when preparing the consolidated financial statements the difference between the disposal price and
the share of net assets that the subsidiaries have continuously calculated since the date of purchase
30or the date of consolidation is corresponding to the disposal of long-term equity investments. The
capital premium or equity premium is adjusted. If the capital reserve is insufficient to offset the
retained earnings are adjusted.If the Group loses control over the investee due to the disposal of some equity investments and other
reasons the remaining equity shall be re-measured at its fair value on the date of loss of control
when preparing the consolidated financial statements. The difference between the sum of the
consideration obtained from the disposal of equity and the fair value of the remaining equity minus
the share of the net assets of the original subsidiary calculated on the basis of the original
shareholding ratio and continuously calculated from the date of purchase or merger is included in
the investment profit and loss of the current period when the control right is lost and goodwill is
offset. Other comprehensive income related to the original subsidiary's equity investment etc. will
be transferred to the current investment profit and loss when the control right is lost.If the Group disposes of the equity investment in a subsidiary Group step by step through multiple
transactions until the loss of control right if the transactions of the disposal of the equity investment
in a subsidiary Group until the loss of control right belong to a package transaction the transactions
shall be treated as transactions of the disposal of the subsidiary Group and the loss of control right
for accounting. However the difference between the disposal price and the share of the subsidiary's
net assets corresponding to the disposal investment before the loss of control right is recognized as
other comprehensive income in the consolidated financial statements and is transferred to the
investment profit and loss of the current period when the control right is lost.
8. Classification of Joint arrangements and Accounting Treatment of Joint Operations
The Group classifies joint arrangements into joint operations and joint ventures. For a joint
operation the Group as a joint operator recognizes the assets and liabilities that it holds and bears
in the joint operation and recognizes the jointly-held assets and jointly-borne liabilities according to
the Group’s stake in the joint operation; recognizes relevant income and expense according to the
Group’s stake in the joint operation. When the Group purchases or sells the assets not constituting
business with the joint operation the Group only recognized the share of the other joint operators in
the gains and losses arising from the transaction.
9. Cash and Cash Equivalents
In the Group’s understanding the cash in the cash flow statement includes cash on hand and
deposits that can be used for cover the cash equivalents in the cash flow statement include high
circulating investments held within three months which are easily convertible into known amount of
cash and whose risks in change of value are minimal.
10. Foreign Currency Businesses and Translation of Foreign Currency Financial Statements
(1) Foreign currency transaction
31Foreign currency transactions of the Group are initially recognized at the exchange rate at the
beginning of the month of the transaction date (usually referring to the middle rate of the foreign
exchange rate announced by the People's Bank of China on the day the same below) converting
the foreign currency amount into the functional currency amount. On the balance sheet date the
monetary items in foreign currency were converted into RMB at the spot exchange rate on balance
sheet date. Except the exchange difference arising from special foreign-currency borrowing for the
purpose of construction or production of assets meeting capitalization conditions treated in the
principle of capitalization the conversion difference was directly included in the current profits and
losses.
(2) Translation of foreign currency financial statement
The asset and liability items in foreign currency balance sheet were converted at the spot exchange
rate on balance sheet date; except for “undistributed profit” owner’s equity items were converted at
the sport exchange rate at the time of business occurrence; income and expenditure items in income
statement were converted at the average exchange rate for the period (monthly average exchange
rate) of the transaction occurrence date. The conversion difference of foreign currency statements
arising from the aforementioned conversion was presented in other comprehensive income item.The foreign currency cash flow was converted at the average exchange rate for the period (monthly
average exchange rate) of the cash flow occurrence date. The amount of exchange rate change
influence on cash was independently presented in cash flow statement.
11. Financial Instruments
(1) Recognition and derecognition of financial instruments
The Group recognizes a financial asset or liability when it becomes a party of the relevant financial
instrument contract.The Company's financial assets (or a portion of a financial asset or a part of a group of similar
financial assets) shall be derecognized when meeting any of the following conditions meaning they
are removed from the accounts and the balance sheet:1) The right to receive cash flows from the
financial asset expires; 2) The financial asset is transferred and the Group has transferred
substantially all risks and rewards of ownership of the financial asset; 3) The financial asset is
transferred and the Group has neither transferred nor retained substantially all risks and rewards of
ownership and has not retained control over the financial asset.In case of current obligation of financial liabilities (or partial financial liabilities) being terminated
derecognition of such financial liabilities (or partial financial liabilities) is conducted by the Group.If the Group (borrower) concludes an agreement with the lender to replace existing financial
liabilities with new ones and contact terms of new financial liabilities are different from those of
existing financial liabilities derecognition of existing financial liabilities and recognition of new
financial liabilities shall be conducted. In case of material alteration of contract terms of existing
32financial liabilities (partial financial liabilities) by the Group derecognition of existing financial
liabilities and recognition of new financial liabilities as per modified terms shall be conducted. In
case of derecognition of financial liabilities (partial financial liabilities) the Group includes the
balance between its carrying value and payment consideration into the current profit or loss.All regular acquisitions or sales of financial assets are recognized and derecognized on a transaction
date basis.
(2) Classification and measurement of financial assets
The Group classifies the financial assets into financial assets measured at amortized cost financial
assets measured by the fair value and the changes recorded in other comprehensive income and
financial assets at fair value through profit or loss based on the business model for financial assets
management and characteristics of contractual cash flow of financial assets.The Group classified the financial assets meeting the following conditions at the same time as
financial assets at amortized cost: * The business mode of the Group to manage the financial assets
targets at collecting the contractual cash flow. * The contract of the financial assets stipulates that
the cash flow generated in the specific date is the payment of the interest based on the principal and
outstanding principal amount. These financial assets initially measured at fair value and relevant
transaction cost shall be included into the initial recognized amount and subsequently measured at
amortized cost. Except for those designated to be hedge items the difference between the initial
recognized amount and the amount due shall be amortized at actual interest rate and their
amortization impairment and exchange gain and loss as well as gains or losses arising from
derecognition shall be recorded into the current profit or loss.The Group classified the financial assets meeting the following conditions at the same time as
financial assets at fair value through other comprehensive income: * The Business mode for
managing financial assets of the Group takes contract cash flow collected as target and selling as
target. * The contract of the financial assets stipulates that the cash flow generated in the specific
date is the payment of the interest based on the principal and outstanding principal amount. These
financial assets initially measured at fair value and relevant transaction cost shall be included into
the initial recognized amount. Except for those designated as hedged items as for these financial
assets except for gains or losses on credit impairment exchange gain and loss and interest of
financial assets measured at actual interest rate other gains or losses generated shall be recorded
into other comprehensive income. When derecognized the accumulated gains and losses originally
recorded into other comprehensive income shall be transferred out into the current profit or loss.The Group recognizes interest income according to the effective interest rate method. Interest
income is calculated and determined according to the book balance of the financial asset multiplied
by the actual interest rate except for the following circumstances: * For the financial asset with
credit impairment that has been purchased or originated from the initial recognition the interest
33income is calculated and determined according to the amortized cost of the financial asset and the
actual interest rate adjusted by credit. * For financial assets purchased or originated that have not
suffered credit impairment but have suffered credit impairment in subsequent periods the interest
income shall be calculated and determined according to the amortized cost and actual interest rate of
the financial assets in subsequent periods.The Group designates non-transactional investment in equity instruments as financial assets at fair
value through other comprehensive income. Those designated non-transactional investment in
equity instruments by the Group is initially measured at fair value and relevant transaction cost shall
be recorded into the initial recognized amount. Except for dividends (excluding those belonging to
recovery of investment cost) which shall be recorded into the current profit or loss other relevant
gains and losses (including exchange gains and losses) shall be recorded into other comprehensive
income and cannot be transferred into the current profit or loss subsequently. When derecognized
the accumulated gains or losses originally recorded into other comprehensive income shall be
transferred out into retained earnings. Equity instrument investments measured at fair value through
other comprehensive income included: Equity investments to be held in the long term as planned by
the Group for strategic purpose with no control joint control or significance influence and with no
active market quotation.The Group classifies financial assets not belonging to above two as financial assets at fair value
through profit or loss which shall be initially measured at fair value and relevant transaction cost
shall be directly recorded into the current profit or loss. Gains or losses arising from these financial
assets shall be recorded into the current profit or loss.The contingent consideration recognized by the Group in the business combination not under the
same control which constitutes a financial asset shall be classified as the financial asset at fair value
through profit or loss.
(3) Classification recognition and measurement of financial liabilities
The Group’s financial liabilities are on initial recognition classified into financial liabilities at fair
value through profit or loss and other financial liabilities.Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities
and financial liabilities designated at the initial recognition to be measured by the fair value and their
changes are recorded in the current profit or loss. The subsequent measurement shall be at fair value
and gains or losses arising from changes in fair value and the dividends and interest expense related
to the financial liability shall be the current profit or loss.Other financial liabilities shall be subsequently measured at amortized cost with actual interest rate.The Group classifies financial liabilities except for the following items as financial liabilities at
amortized cost: * Financial liabilities at fair value through profit or loss including held-for-trading
financial liabilities (including the derivative instruments belonging to financial liabilities) and
34designated financial liabilities at fair value through profit or loss. * Financial liabilities arising from
the transfer of financial assets not meeting the derecognition conditions or continuous involvement
in the transferred financial assets. * Financial guarantee contract not belonging to cases of above *
or * and loan commitments at interest rate lower than the market rate not belonging to the case in
*.The Group treats the financial liability arising from contingent consideration recognized as the
purchase party in the business combination not under the same control at fair value and changes
thereof shall be recorded into the current profit or loss.
(4) Impairment of Financial Instrument
The Group needs to confirm that the financial assets subject to the impairment loss are the financial
assets measured based on the amortized cost the debt instrument investment measured based on the
fair value with its variations included into other comprehensive incomes and the lease outlay
receivable mainly including notes receivable account receivable other receivables investment on
creditor’s rights other investments on creditor’s rights and long-term receivables etc. Besides in
respect of the contract assets and partial financial guarantee contract corresponding impairment
provisions shall be calculated and withdrawn and corresponding credit impairment losses
recognized according to various accounting policies mentioned in this part.
1) Methods for the Recognition of Impairment Provisions
For all mentioned items above the Group shall calculate and withdraw corresponding impairment
provisions and recognize corresponding credit impairment losses according to applicable expected
credit loss measurement methods (general methods or simplified methods) with the expected credit
loss as the basis.Credit loss refers to the difference between all receivable contract cash flows and all expected cash
flows that are discounted to the present value based on the original actual interest rate -- the present
value of all cash shortfall. However for the purchased or original financial assets subject to the
credit impairment the Group shall realize the discounting based on the actual interest rate subject to
the credit adjustment.General methods applied to measure the expected credit loss can be described as: the Group shall
evaluate whether the credit risk of the financial assets (including the contract assets and other
applicable items; the same below) increases remarkably after the initial recognition on the balance
sheet day; if the credit risk increases remarkably after the initial recognition the Group shall
measure the provision for loss based on the specific expected credit loss amount during the entire
period of existence; if not the Group shall measure the provision for loss based on the specific
expected credit loss amount in the following 12 months. While evaluating the expected credit loss
the Group shall take all reasonable and well-founded information into consideration including the
forward-looking information.
35For the financial instrument of lower credit risk on the balance sheet day the Group shall assume
that its credit risk does not increase remarkably after the initial recognition and corresponding
provision for loss shall be measured according to the expected credit loss in the following 12
months.
2) Standards for Judging Whether the Credit Risk Increases Remarkably after the Initial
Recognition
If any financial assets’ probability of default within the expected period of existence determined on
the balance sheet day is obviously higher than that within the expected period of existence
determined during the initial recognition it shall indicate the remarkable increase of the financial
assets’ credit risk. Unless it is under special circumstances the Group shall adopt various variations
in the default risk in the following 12 months as the reasonable basis for estimating corresponding
variations in the default risk within the entire period of existence and determining whether the credit
risk increases remarkably after the initial recognition.
3) Combined Method for Evaluating the Expected Credit Risk based on Corresponding
Combination
For the financial assets with remarkably different credit risk the Group shall separately evaluate its
credit risk including the receivables from related parties receivables involved in any dispute with
the other party or any lawsuit and arbitration and receivables with obvious evidence showing that
the debtor cannot fulfill the due payment obligation etc.Except for the financial assets whose credit risk shall be separately evaluated the Group shall divide
these financial assets into different combinations based on the specific risk features on which basis
corresponding credit risks can be evaluated.
4) Accounting Treatment Methods Applied to the Impairment of Financial Assets
At the end of the period the Group shall calculate the expected credit losses of various financial
assets. If the expected credit loss is higher than the carrying amount of its current impairment
provision the difference shall be recognized as the impairment loss; if lower the difference shall be
recognized as the gain from the impairment.
(5) Recognition and measurement of financial assets transfer
The Group derecognizes a financial asset when one of the following conditions is met: * the rights
to receive cash flows from the asset have expired; * the enterprise has transferred its rights to
receive cash flows from the asset to a third party under a pass-through arrangement; or * the
enterprise has transferred its rights to receive cash flows from the asset and either (a) has transferred
substantially all the risks and rewards of the asset or (b) has neither transferred nor retained
substantially all the risks and rewards of the asset but has transferred control of the asset.If the overall transfer of financial assets fulfills the requirements for derecognition the difference
36between 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 it belongs to the former condition the instrument is the
financial liability of the issuer; if it belongs to the latter condition the instrument is the equity
instrument of the issuer. In some cases a financial instrument contract requires the Group to use or
use its own equity instrument to settle the financial instrument in which the amount of contractual
rights or contractual obligations is equal to the number of its own equity instruments available or to
be delivered multiplied by its fair value at the time of settlement regardless of whether the amount
of contractual rights or obligations is fixed whether it is entirely or partially based on changes in
variables other than the market price of the Group's own equity instruments the contract shall be
classified as a financial liability.In classifying financial instruments (or their components) in the consolidated statement the Group
has taken into account all terms and conditions reached between the Group members and the holders
of financial instruments. If the Group as a whole undertakes the obligation to deliver cash other
37financial assets or settle accounts in other ways that cause the instrument to become a financial
liability due to the instrument the instrument shall be classified as a financial liability.If financial instruments or their components are financial liabilities the Group will include interest
dividends (or dividends) gains or losses and gains or losses arising from redemption or refinancing
etc. in the current profits and losses.If financial instruments or their components are equity instruments when they are issued (including
refinancing) repurchased sold or cancelled the Group will treat them as changes in equity and will
not recognize changes in the fair value of equity instruments.
(7) Offsetting financial assets and financial liabilities
The Group’s financial assets and liabilities shall be separately presented in the balance sheet and not
set off each other. But when meeting the following conditions at the same time the net amount after
offset shall be presented in the balance sheet: (1) The Group has the statutory right to set off
recognized amount which is currently executable; (2) The Group plans to settle with the net amount
or realize the financial asset and pay off the financial liability simultaneously.
12. Notes Receivable
For notes receivable the Group shall measure the provision for loss based on the specific expected
credit loss during the entire period of existence. According to the credit risk characteristics thereof
except those with separate evaluation of credit risk notes receivable can be divided into different
combinations:
Item Basis
Bank Acceptance The Accepter shall be the bank with high credit level and low risks
Trade Acceptance Classified by credit risk of acceptors (the same as accounts receivable)
13. Accounts Receivable
For account receivable and contract assets excluding significant financing composition the Group
shall measure the provision for loss according to the specific expected credit loss amount within the
entire period of existence.For account receivable contract assets and lease payment receivable including significant financing
composition the Group shall always measure the provision for loss according to the specific
expected credit loss amount within the period of existence.Except the account receivable and contract assets whose credit risks shall be separately evaluated
the Group shall divide them into different combinations based on the specific credit risks:
38Item 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. Accounts Receivable 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 loss reserves on other receivables in accordance with the following
circumstances: a) For financial assets whose credit risk has not significantly increased since the
initial recognition the Group measures the loss reserves at the amount of expected credit losses for
the next 12 months; b) For financial assets whose credit risk has increased signif icantly since the
initial recognition the Group measures the loss reserves at an amount equal to the expected credit
losses for the entire period of the financial instrument; c) For financial assets purchased or
originated from credit impairment the Group measures the loss reserves at an amount equal to the
expected credit losses over the entire period of the financial instrument. Except other receivables
whose credit risks shall be separately evaluated the Group shall divide them into different
combinations based on the specific credit risk features:
Item Basis
Aging
This portfolio is other receivables with aging as the credit risk feature.Combination
This combination shall regard other receivables of extremely low risk (including
Low Risk
the revolving fund the cash deposit and the guarantee deposit) as the credit risk
Combination
feature.Related party
Other receivables from the other entities within the consolidation scope
combination
16. Long-term Receivables
By determining whether the credit risk of long-term account receivables increases remarkably after
the initial recognition the Group shall measure the impairment loss based on the specific expected
credit loss in the following 12 months or during the entire period of existence. Except long-term
39account 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 credit
Combination 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 method is used for inventories. Inventories are priced at the actual cost at
the time of acquisition; the actual cost of inventories is determined by the weighted average method
when inventories are claimed or issued. Low-value consumables and packaging are amortized
through the one-off charge-off method.The net realizable value of inventories of goods that are used directly for sale such as inventory
goods products in process and materials for sale is determined by the estimated selling price of the
inventory minus estimated sale expenses and related taxes; the net realizable value of inventories of
materials held for production is determined by the estimated selling price of the finished goods
produced minus the estimated costs of completion estimated sale expenses and related taxes.The
inventories with various numbers and low unit price shall be made provisions for depreciation
reserves of inventories according to the category of inventories. For inventories that are produced
and sold in the same region with same or similar end use or purposes and hard to be measured
separately from other items it shall be made merger provisions for falling price of inventories.The net realizable value refers in the ordinary course of business to the account after deducting the
estimated cost of completion estimated sale expense and relevant taxes from the estimated sale
price of inventories. The net realizable value of inventories shall be fixed on the basis of valid
evidence as well as under consideration of purpose of inventories and the effect of events after
balance-sheet-date.After withdrawing the depreciation reserves for inventories if the factors which cause any
write-down of the inventories have disappeared causing the net realizable value of inventories is
higher than its carrying amount; the amount of write-down shall be reversed from the original
amount of depreciation reserve for inventories. The reversed amount shall be included in the profits
and losses of the current period.
18. Contract Assets
(1) Confirmation methods and standards of contract assets
40Contract 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 value of the current contract asset impairment provision
the Group will recognize the difference as an impairment loss and debit the "asset impairment loss".Credited "Contract asset impairment provision". On the contrary the Group recognizes the
difference as an impairment gain and keeps the opposite accounting records.If the Group actually incurs credit losses and determines that the relevant contract assets cannot be
recovered and the written-off is approved the "contract asset impairment reserve" is debited and
the "contracted asset" is credited based on the approved write-off amount. If the written-off amount
is greater than the provision for loss that has been withdrawn the "asset impairment loss" is debited
based on the difference.
19. Assets Relating to Contract Costs
(1) The method of determining the amount of assets related to contract costs
The Group’s assets related to contract costs include contract performance costs and contract
acquisition costs.The contract performance cost that is the cost incurred by the Group for the performance of the
contract does not fall within the scope of other accounting standards and meets the following
conditions at the same time as the contract performance cost is recognized as an asset: the cost and
a current or expected contract Directly related including direct labor direct materials
manufacturing expenses clearly the cost borne by the customer and other costs incurred only due to
the contract; this cost increases the Group's future resources for fulfilling its performance
obligations; This cost is expected to be recovered.The contract acquisition cost that is the incremental cost incurred by the Group to obtain the
contract is expected to be recovered and is recognized as an asset as the contract acquisition cost; if
the asset amortization period does not exceed one year it is included in the current profit and loss
when it occurs. Incremental cost refers to the cost (such as sales commission etc.) that the Group
41will 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 the Group determines the impairment loss of assets related to contract costs it first
determines the impairment loss of other assets related to the contract that are confirmed in
accordance with other relevant business accounting standards; then based on their book value
higher than the Group’s transfer and If the difference between the remaining consideration that the
asset-related commodity is expected to obtain and the estimated cost incurred for the transfer of the
relevant commodity the excess shall be provided for impairment and recognized as an asset
impairment loss.If the depreciation factors of the previous period have changed and the aforementioned difference is
higher than the book value of the asset the original provision for asset impairment shall be reversed
and included in the current profit and loss but the book value of the asset after the reversal shall not
exceed Assuming no provision for impairment is made the book value of the asset on the date of
reversal.
20. Long-term Equity Investments
The Group's long-term equity investments mainly consist of investments in subsidiaries associated
enterprises and joint ventures.The Group’s judgment on joint control is based on the fact that all participants or a combination of
participants collectively control the arrangement and that the policies of the activities related to the
arrangement shall be unanimously agreed by those participants who.The Group is generally considered to have a significant influence on the investee when it owns
directly or indirectly through a subsidiary above 20% but below 50% of the voting rights of the
investee. If the Group holds less than 20% of the voting rights of the investee it also needs to judge
whether the Group has a significant influence on the investee by taking into account the facts and
circumstances such as having representatives on the board of directors or similar authority of the
investee or participating in the process of formulating financial and operating policies of the
investee or having major transactions with the investee or sending management personnel to the
investee or providing key technical information to the investee.If control over the investee is formed it is a subsidiary of the Group. For long-term equity
42investment 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.For long-term equity investment acquired through business combination not under the same control
the initial investment cost shall be the consolidation cost.If the equity of the investee not under the same control is acquired in stages through multiple
transactions to eventually result in a business combination additional disclosures of the cost
treatment of long-term equity investments in the parent Group's financial statements shall be made
in the Reporting Period in which control is obtained. For example if the business combination that
is ultimately formed through multiple transactions to acquire the equity of the investee not under the
same control belongs to a package deal the Group shall conduct accounting treatment to treat each
transaction as a single transaction to acquire control. If the transaction is not a package deal the sum
of the book value of the equity investment originally held plus the cost of the new investment shall
be the initial investment cost calculated in accordance with the cost method. If the equity held prior
to the purchase date is accounted by the equity method the relevant other comprehensive income
accounted by the original equity method shall not be adjusted. The same basis of accounting as that
used for the direct disposal of the related assets or liabilities by the investee is used for the disposal
of the investment. If the equity held prior to the purchase date is a financial asset designated to be
measured at fair value with fluctuations included in other comprehensive income the cumulative
profit or loss on the equity previously recognized in other comprehensive income shall be
transferred from other comprehensive income to the retained earnings; if the equity is a financial
asset measured at fair value and the changes of which are included in profits and losses of the
43current period the equity previously recognized as profits and losses from the changes in fair value
shall not be transferred to investment income. If the equity held prior to the purchase date is an
investment for other equity instruments the changes in fair value of the equity investment
accumulated in other comprehensive income before the purchase date shall be transferred to the
retained earnings.Except for the long-term equity investments acquired through business combination hereinabove
long-term equity investments acquired by paying cash are recorded as investment cost based on the
actual purchase price paid; long-term equity investments acquired by issuing equity securities are
recorded as investment cost based on the fair value of the equity securities issued; long-term equity
investments invested by investors are recorded as investment cost based on the value agreed in the
investment contract or agreement.The Group calculates its investments in subsidiaries through the cost method and its investments in
joint ventures and associate enterprises through the equity method.For long-term equity investments calculated by the cost method for subsequent measurement the
book value of the cost of long-term equity investments shall be increased by the fair value of the cost
amount paid for the additional investment and relevant transaction costs incurred when the
additional investment is made. Cash dividends or profits declared by the investee are recognized as
investment income for the current period in accordance with the due amount.In addition to the above-mentioned long-term equity investment obtained through business
combination the long-term equity investment obtained by paying cash shall be regarded as the
investment cost according to the purchase price actually paid; the long-term equity investment
obtained by issuing equity securities shall be regarded as the investment cost according to the fair
value of issuing equity securities; the long-term equity investment invested by investors shall be
regarded as the investment cost according to the investment contract or agreement The value of the
Group is regarded as the cost of investment.The Group adopts the cost method for investment in subsidiaries and the equity method for
investment in joint ventures and associated enterprises.For the long-term equity investment whose subsequent measurement adopts the cost method when
the additional investment is made the book value of the long-term equity investment cost is
increased according to the fair value of the cost amount paid by the additional investment and the
relevant transaction expenses. The cash dividends or profits declared to be distributed by the
investee shall be recognized as the current investment income according to the amount that should
be enjoyed.For the long-term equity investment with equity method for subsequent measurement the book
value of the long-term equity investment will increase or decrease with the change of the owner's
equity of the invested entity. When confirming the share of the net profit and loss of the investee the
44net profit and loss of the investee shall be calculated based on the fair value of the identifiable assets
of the investee at the time of obtaining the investment in accordance with the accounting policies
and accounting period of the Group and offset the internal transaction profit and loss between the
joint venture and the joint venture according to the shareholding ratio Profit is recognized after
adjustment.For disposal of long-term equity investment the difference between the book value and the actual
price shall be included in the current investment income. For long-term equity investment accounted
by equity method other comprehensive income accounted by the original equity method shall be
accounted on the same basis as the investee's direct disposal of relevant assets or liabilities when the
equity method is terminated and the owner's equity shall be recognized due to other changes in
owner's equity of the investee except net profit and loss other comprehensive income and profit
distribution When the equity method is terminated all of them shall be transferred into the current
investment income.In case of loss of joint control or significant influence on the investee due to the disposal of part of
equity investment the remaining equity after disposal shall be accounted according to the relevant
provisions of the recognition and measurement standards of financial instruments and the
difference between the fair value and the book value of the remaining equity on the date of loss of
joint control or significant influence shall be included in the current profits and losses. When the
equity method is terminated the other comprehensive income of the original equity investment
recognized as a result of its accounting with the equity method shall be handled on the same basis as
the investee's direct disposal of the relevant assets or liabilities and carried forward in proportion.The owner's equity recognized as a result of the changes in the owner's equity of the investee other
than net profit and loss other comprehensive income and profit distribution shall be carried forward
in proportion Transfer to current investment income.If the control over the investee is lost due to the disposal of part of the long-term equity investment
and the residual equity after disposal can jointly control or exert significant influence on the investee
it shall be accounted according to the equity method and the difference between the book value of
the disposal equity and the disposal consideration shall be included in the investment income and
the residual equity shall be regarded as adjusted by the equity method when it is obtained If the
residual equity cannot exercise joint control or exert significant influence on the investee the
accounting treatment shall be carried out according to the relevant provisions of the recognition and
measurement standards of financial instruments. The difference between the book value of the
disposal equity and the disposal consideration shall be included in the investment income and the
difference between the fair value and the book value of the residual equity on the day of losing
control shall be included in the current profits and losses.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
45a "package deal" each transaction will be treated as a transaction of disposal of subsidiaries and loss
of control. However before the loss of control the difference between the disposal price of each
transaction and the book value of the long-term equity investment corresponding to the disposed
equity will be recognized as other comprehensive income and when the control is lost it will be
transferred to the current account of loss of control Period profit and loss.
21. Investment Property
The term “investment property” refers to the real estate held for generating rent and/or capital
appreciation. Investment property of the Group include the right to use any land which has already
been rented; the right to use any land which is held and prepared for transfer after appreciation; and
the right to use any building which has already been rented. In addition if the board of directors (or
similar organizations) makes a written resolution to use the vacant buildings held by the Group for
operating lease and the holding intention will not change in a short time they will also be listed as
investment real estate.The initial measurement of the investment property shall be made at its cost. Subsequent
expenditures incurred for an investment property is included in the cost of the investment property
when it is probable that economic benefits associated with the investment property will flow to the
Group and the cost can be reliably measured otherwise the expenditure is recognized in profit or
loss in the period in which they are incurred.The Group shall make a follow-up measurement to the investment property by employing the cost
pattern on the date of the balance sheet. An accrual depreciation or amortization shall be made for
the investment property in the light of the accounting policies of the use right of buildings or lands.For details of impairment test method and withdrawal method of impairment provision of
investment property please refer to Note IV. 27. “Long-term assets impairment”.The Group's investment real estate adopts the average life method for depreciation or amortization.The expected service life net residual value rate and annual depreciation (amortization) rate of all
kinds of investment real estate shall refer to the depreciation policy of buildings in fixed assets and
the amortization policy of land use right in intangible assets.When owner-occupied real estate or inventories are changed into investment property or investment
property is changed into owner-occupied real estate of which book value prior to the change shall
be the entry value after the change.When an investment property is changed to an owner-occupied real estate it would be transferred to
fixed assets or intangible assets at the date of such change. When an owner-occupied real estate is
changed to be held to earn rental or for capital appreciation the fixed asset or intangible asset is
transferred to investment property at the date of such change. If the fixed asset or intangible asset is
changed into investment property measured by adopting the cost pattern whose book value prior to
the change shall be the entry value after the change; if the fixed asset or intangible asset is changed
46into investment property measured by adopting the fair value pattern whose fair value on the date of
such change shall be the entry value after the change.An investment property is derecognized on disposal or when the investment property is permanently
withdrawn from use and no future economic benefits are expected from its disposal. The amount of
proceeds on sale transfer retirement or damage of an investment property less its carrying amount
and related taxes and expenses is recognized in profit or loss in the period in which it is incurred.
22. Fixed Assets
The Group’s fixed assets are tangible assets held for the production of goods provision of services
rental or operation management and have a useful life of more than one year.Fixed assets should be recognized when it is probable that the economic benefits associated with
them will be incorporated into the Group and their cost can be measured reliably. The Group’s fixed
assets include buildings and constructions machinery and equipment electronic equipment
transportation equipment and other equipment.The Group depreciates all fixed assets by straight-line method except for fully depreciated fixed
assets that continue to be used and land that is separately valued. The categorized depreciable lives
estimated net salvage rates and depreciation rates of the Group’s fixed assets are as follows:
Annual
Depreciation Expected net
No. Category Method deprecation
period (year) salvage value (%)
(%)
Housing and Straight-line
120-405-10.002.25-4.75
building depreciation
Machinery Straight-line
25-105-10.009.00-19.00
equipment depreciation
Electronic Straight-line
33-55-10.0018.00-31.67
equipment depreciation
Transportation Straight-line
43-55-10.0018.00-31.67
vehicle depreciation
Straight-line
5 Other equipment 5 5-10.00 18.00-19.00
depreciation
The estimated useful life estimated net salvage value and depreciation method of fixed assets are
reviewed at the end of each year. Accounting estimation methods are used when changes are
required.
4723. Construction in Progress
The cost of construction in progress is determined based on actual project expenditures including
all necessary project expenditures incurred during construction borrowing costs to be capitalized
before the project reaches its predetermined usable state and other related expenses etc.On the date when the construction in progress reaches its intended useable state fixed assets are
carried forward at the estimated value based on the project budget cost or actual cost of the project
etc. Depreciation starts from the following month and the difference in the original value of fixed
assets is adjusted after the completion of the final accounting procedures.Construction in progress is transferred to fixed assets upon reaching the predetermined usable state
with the criteria as follows:
Item Criteria for carrying forward fixed assets
The main construction project and ancillary projects are substantially
completed meeting the predetermined design requirements. Upon
joint acceptance by the Company’s Engineering Department and
units responsible for surveying design construction supervision
Houses and buildings
etc. and government departments such as the Fire Services
Department and the Housing Authority and reaching the
predetermined usable state following process approval it is
transferred to fixed assets.The equipment management department and the equipment
manufacturer are jointly responsible for the installation and
commissioning of the equipment including hardware debugging
machinery and equipment
process conditions debugging etc. Upon completion of debugging
and reaching the predetermined usable state following process
approval it is transferred to fixed assets.
24. Borrowing Costs
The Group capitalizes borrowing costs directly attributable to the acquisition construction or
production of qualifying assets as part of the cost of those assets. Other borrowing costs are
recognized as expenses in the current period. The assets determined by the Group that meet the
conditions for capitalization include: fixed assets investment real estate and inventory that need
more than one year of purchasing construction or production activities to reach the preset usable or
sellable status shall be capitalized when the asset expenditure has occurred the borrowing costs
have occurred and the purchasing construction or production activities necessary for the asset to
reach the preset usable or sellable status have begun; When the acquisition construction or
48production of assets that meet the capitalization conditions reach the intended usable or sellable
status capitalization is stopped and the borrowing costs incurred thereafter are included in the
profits and losses of the current period. If there is an abnormal interruption in the acquisition
construction or production of assets that meet the capitalization conditions and the interruption lasts
for more than 3 consecutive months the capitalization of borrowing costs will be suspended until
the acquisition construction or production of assets starts again.During the capitalization period the Group recognizes the amount of borrowing costs capitalized
in each accounting period using the following method: In the case of borrowing special-purpose
borrowings the amount of interest expense actually incurred in the current period less interest
income earned on the unused borrowed funds deposited in the bank or investment income earned
on temporary investments shall be capitalized; in the case of occupying general borrowings the
amount shall be determined on the basis of the weighted average number of asset expenditures for
the portion of accumulated asset expenditures in excess of the special-purpose borrowings
multiplied by the capitalization rate of the general borrowings occupied where the capitalization
rate is calculated and determined on the basis of the weighted average interest rate of the general
The capitalization rate is based on the weighted average interest rate of general borrowings.
25. Right-of-Use Assets
The right-of-use assets refer to the right of the Group as the lessee to use the leased assets during the
lease term.
(1) Initial measurement
After the commencement date of the lease term the Group uses the cost for initial measurement of
right-of-use assets. The cost includes the following four items: a) The initial measurement amount
of lease liabilities; b) If there is a lease incentive for the lease payment paid on or before the
commencement date of the lease term the relevant amount of the lease incentive already enjoyed
shall be deducted; c) The initial direct expenses incurred are the incremental costs incurred in
reaching the lease; d) The costs expected to be incurred for dismantling and removing the leased
assets restoring the site where the leased assets are located or restoring the leased assets to the state
agreed in the lease terms except those incurred for the production of inventories.
(2) Follow-up measurement
After the commencement date of the lease term the Group adopts the cost model to carry out
follow-up measurement of the right-of-use assets that is the right-of-use assets are measured at cost
less accumulated depreciation and accumulated impairment losses. If the Group re-measures the
lease liabilities according to the relevant provisions of the lease standards the book value of the
right-of-use assets shall be adjusted accordingly.
(3)Depreciation of right-of-use assets
From the commencement date of the lease term the Group has accrued depreciation on the
right-of-use assets. Right-of-use assets are usually depreciated from the month when the lease term
begins. The accrued depreciation amount is included in the cost of related assets or current profits
and losses according to the use of the right-of-use assets.
49When determining the depreciation method of the right-of-use assets the Group makes a decision
based on the expected consumption mode of the economic benefits related to the right-of-use assets
and accrues depreciation for the right-of-use assets on the straight-line method.When determining the depreciation period of the right-of-use assets the Group follows the
following principles: If the ownership of the leased assets can be reasonably determined when the
lease term expires depreciation shall be accrued within the remaining service life of the leased
assets; if it cannot be reasonably determined that the ownership of the leased asset can be obtained
when the lease term expires depreciation shall be accrued within the shorter of the lease term and
the remaining service life of the leased asset.
(4)Impairment of right-of-use assets
If the right-of-use assets are impaired the Group carries out subsequent depreciation according to
the book value of the right-of-use assets after deducting the impairment loss.
26. Intangible Assets
The Group’s intangible assets include land use rights patented technology and non-proprietary
technology which are measured at actual cost at the time of acquisition. Acquired intangible assets
are stated at actual cost based on the actual price paid and related other expenses. The actual cost of
intangible assets invested by investors is determined at the value agreed in the investment contract
or agreement but if the agreed value in the contract or agreement is not fair the actual cost is
determined at fair value. Intangible assets such as patents acquired in a merger not under common
control but owned by the acquiree but not recognized in its financial statements are recognized as
intangible assets at fair value at the time of initial recognition of the acquiree’s assets.
(1) Useful life and its determination basis estimation amortization method or review procedure
The Group's intangible assets include land use rights patented technology non-patented technology
etc. measured at the actual cost at the time of acquisition. For purchased intangible assets the actual
cost is determined by the actual payment made and related expenditures. For intangible assets
contributed by investors the actual cost is determined based on the value agreed upon in the
investment contract or agreement; however if the contractually agreed value is not fair the fair
value is used to determine the actual cost. Intangible assets such as patents which are acquired in a
business combination under common control but not recognized in the financial statements of the
acquiree are recognized as intangible assets at their fair value upon initial recognition of the assets
of the acquiree.
(2) Scope of R&D expenditures and related accounting treatment
The scope of the Group's R&D expenditures includes salaries of R&D personnel direct input costs
depreciation and amortization design fees equipment testing fees fees for R&D outsourced to
external parties and other expenses.The Group classifies its internal research and development project expenditures into expenditure on
the research phase and expenditure on the development phase based on the nature of the
expenditures and the degree of uncertainty in whether the R&D activities will result in an intangible
asset. Expenditure on the research phase are recognized in profit or loss when incurred. Expenditure
on the development phase are capitalized when all of the following conditions are met:
a) The Group has assessed the technical feasibility of completing the intangible asset so that it will
50be available for use or sale.
b) The Group intends to complete the intangible asset and use or sell it.c) It is probable that the intangible asset will generate future economic benefits.d) The Group has the adequate technical financial and other resources to complete the development
and to use or sell the intangible asset.e) The expenditure attributable to the development phase of the intangible asset can be measured
reliably. Development phase expenditures not meeting these capitalization criteria are recognized in
profit or loss for the current period when incurred.
27. Impairment of Long-term Assets
For non-current non-financial Assets of fixed assets projects under construction intangible assets
with limited service life investing real estate with cost model long-term equity investment of
subsidiaries cooperative enterprises and joint ventures the Group should judge whether decrease in
value exists on the date of balance sheet. Recoverable amounts should be tested for decrease in
value if it exists. Goodwill intangible assets with uncertain service life and other non-accessible
intangible assets should be tested for impairment at the end of each year regardless of whether there
is any indication of impairment.
(1) Impairment of non-current assets other than financial assets (except goodwill)
If the recoverable amount is less than carrying value in impairment test results the provision for
impairment of differences should include in impairment loss. Recoverable amounts would be the
higher of net value of asset fair value deducting disposal charges or present value of predicted cash
flow. Asset fair value should be determined according to negotiated sales price of fair trade. If no
sales agreement exists but with asset active market fair value should be determined according to the
Buyer’s price of the asset. If no sales agreement or asset active market exists asset fair value could
be acquired on the basis of best information available. Disposal expenses include legal fees taxes
cartage or other direct expenses of merchantable Assets related to asset disposal. Present value of
predicted asset cash flow should be determined by the proper discount rate according to Assets in
service and predicted cash flow of final disposal. Asset depreciation reserves should be calculated
on the basis of single Assets. If it is difficult to predict the recoverable amounts for single Assets
recoverable amounts should be determined according to the belonging asset group. Asset group is
the minimum asset combination producing cash flow independently.
(2) Impairment of goodwill
In impairment test carrying value of the business reputation in financial report should be shared to
beneficial asset group and asset group combination in collaboration of business merger. It is shown
in the test that if recoverable amounts of shared business reputation asset group or asset group
combination are lower than book value it should determine the impairment loss. Impairment loss
amount should firstly be deducted and shared to the carrying value of business reputation of asset
51group or asset group combination then deduct carrying value of all assets according to proportions
of other carrying value of above assets in asset group or asset group combination except business
reputation.After the asset impairment loss is determined recoverable value amounts would not be returned in
future.
28. Long-term Deferred Expenses
The Long-term deferred expenses of the Group including renovation cost mold cost and so on shall
be amortized evenly during the benefit period. If these long-term deferred expenses cannot benefit
the future accounting period the amortized value of this item that has not been amortized shall be
transferred to the current profit and loss.
29. Contract Liabilities
Liabilities of contracts refer to the Group's obligation to transfer goods to customers due to the
consideration received or receivable from customers. Before the transfers if the customer has paid
the consideration or if the Group has obtained the right to unconditionally collect the contract
consideration the liabilities of contracts shall be recognized based on the amount received or
receivable at the earlier point between the actual payment by the customer and the payment due.
30. Employee Compensation
Salaries of staff of the Group include short-term salary post-employment benefits termination
compensation and other long-term benefits.Short-term salary mainly includes wages bonuses allowances and subsidies as well as employee
benefits medical insurance maternity insurance employment injury insurance housing provident
fund labor union expenses and staff education expenses and non-monetary benefits. During the
accounting period when the employees provide services the actual short-term compensation is
recognised as a liability that shall be included in the current profit and loss or the cost of related
assets according to the beneficiary.The post-employment benefits mainly include the basic endowment insurance etc. They are divided
into defined contribution plans and defined benefit plans in accordance with the risks and
obligations undertaken by the Group. According to the defined contribution plan the deposit paid to
a separate entity in exchange for the services provided by the employees during the accounting
period on the balance sheet date is recognized as liabilities and shall be included in the current
profit and loss or the cost of related assets according to the beneficiary. If the Group has a defined
benefit plan the specific accounting method should be explained.When terminating labour relations before expiration of contract or layoffs with compensations and
the Group cannot terminate the labour relations unilaterally or reduce the demission welfare
remuneration and liabilities produced from the demission welfare should be determined and
52included in current profits and losses when determining the costs of demission welfare and
recombination. However demission welfare not fully paid within 12 months after annual Reporting
Period should be handled the same as other long-term employees’ payrolls.The inside employee retirement plan is treated by adopting the same principle with the above
dismiss ion welfare. The Group would recorded the salary and the social security insurance fees paid
and so on from the employee’s service termination date to normal retirement date into current profits
and losses (dismission welfare) under the condition that they meet the recognition conditions of
estimated liabilities.The other long-term welfare that the Group offers to the staffs if met with the setting drawing plan
should be accounting disposed according to the setting drawing plan while the rest should be
disposed according to the setting revenue plan.
31. Lease Liabilities
(1) Initial measurement
The Group initially measures the lease obligation at the present value of the lease payments
outstanding at the commencement date of the lease term.
1) Lease payments
Lease payments refer to the amount paid by the Group to the lessor related to the right to use the
leased assets during the lease term including: a) Fixed payment amount and substantial fixed
payment amount. If there is lease incentive deduct the amount related to lease incentive; b) The
variable lease payment amount depending on the index or ratio which is determined according to
the index or ratio on the commencement date of the lease term at the initial measurement; c) When
the Group reasonably determines the exercise price of the purchase option when it will exercise it; d)
The lease term reflects the amount to be paid to exercise the termination option when the Group will
exercise the termination option; e) The amount expected to be paid based on the residual value of the
guarantee provided by the Group.
2) Rate of discount
When calculating the present value of the lease payments the Group uses the interest rate implicit in
lease as the rate of discount which is the interest rate at which the sum of the present value of the
lessor's lease receipts and the present value of the unsecured residual value equals the sum of the fair
value of the leased asset and the lessor's initial direct expenses. If the Group fails to determine the
interest rate implicit in lease the incremental interest rate on borrowing will be used as the rate of
discount. The incremental interest rate on borrowing shall mean the interest rate payable by the
Group to borrow funds under similar mortgage conditions during similar periods to acquire assets
close to the value of the right-of-use assets under similar economic circumstances. The interest rate
is related to the following matters: a) The Group's own situation that is the Company's solvency
and credit status; b) The term of "loan" that is the lease term; c) The amount of "borrowed" funds
that is the amount of lease liabilities; d) "Mortgage conditions" that is the nature and quality of the
underlying assets; e) Economic environment including the jurisdiction where the lessee is located
the valuation currency the time when the contract is signed etc. The incremental borrowing rate is
based on the Group's latest asset-based lending interest rate for similar assets and adjusted to take
53into account the above factors.
(2) Follow-up measurement
After the commencement date of the lease term the Group carries out follow-up measurement of
lease liabilities according to the following principles: a) When recognizing the interest of lease
liabilities the Group will increase the carrying amount of lease liabilities; b) When paying the lease
payments the Group will reduce the book amount of the lease liability; c) When the lease payments
changes due to revaluation or lease change the Group will remeasure the book value of lease
liability.The Group calculates the interest expenses of the lease obligations during each period of the lease
term at a fixed periodic interest rate and includes them (except those that shall be capitalized) in
profit or loss for the current period. Periodic rate refers to the rate of discount adopted by the Group
when initially measuring lease liabilities or the revised rate of discount adopted by the Group when
lease liabilities need to be remeasured according to the revised rate of discount due to changes in
lease payments or lease changes.
(3) Re-measurement
After the commencement date of the lease term the Group re-measures the lease liability based on
the present value of the changed lease payment and adjusts the book value of the right-of-use assets
accordingly when the following circumstances occur. If the carrying value of the right-of-use assets
has been reduced to zero but the lease obligations still need to be further reduced the Group will
include the remaining amount in profit or loss for the current period. a) The actual fixed payment
amount changes (in this case the original rate of discount is used for discount); b) The estimated
amount payable of the residual value changes (in this case the original rate of discount is used for
discount); c) The index or ratio used to determine the lease payment changes (in this case the
revised rate of discount is used for discount); d) The evaluation result of the purchase option
changes (in this case the revised rate of discount is adopted for discount); e) The evaluation result or
actual exercise of the lease renewal option or the lease termination option changes (in this case the
revised rate of discount is adopted for discount).
32. Provisions
The Group should recognize the related obligation as a provision for liability when the obligation
meets the following conditions: (1) That obligation is a present obligation of the enterprise; (2) It is
probable that an outflow of economic benefits from the enterprise will be required to settle the
obligation; (3) A reliable estimate can be made of the amount of the obligation.The projected liabilities are initially measured in accordance with the optimal estimate of the
necessary expenses for the fulfillment of the current obligation with the risks related to contingent
matters uncertainty the time value of money and other factors taken into consideration. The Group
reviews the current best estimate of the provisions for contingent liabilities at the balance sheet date
and adjusts the carrying amount of the provision as necessary.When all or some of the expenses necessary for the liquidation of an provisions of an enterprise is
expected to be compensated by a third party the compensation should be separately recognized as
an asset only when it is virtually certain that the reimbursement will be obtained. Besides the
amount recognized for the reimbursement should not exceed the carrying value of the estimated
liabilities.
5433. Principles of Revenue Recognition and Measurement Method
The revenue of the Group mainly consists of the income from main business and the income from
other businesses.
(1)Revenue recognition principle
The Group has fulfilled the performance obligations in the contract that is when the customer
obtains control of the relevant goods or services revenue is recognized. Obtaining control over
related goods or services means being able to lead the use of the goods or the provision of such
services and obtain almost all of the economic benefits from it.On the starting date of the contract the Group evaluates the contract identifies each individual
performance obligation contained in the contract and determines whether each individual
performance obligation is performed within a certain period of time or at a certain point in time.When one of the following conditions is met it is a performance obligation within a certain period
of time otherwise it is a performance obligation at a certain point in time:
* The customer obtains and consumes the economic benefits brought by the Group's performance
at the same time the Group performs the contract.* The customer can control the products under construction during the performance of the Group.* The goods produced during the performance of the Group have irreplaceable uses and the Group
has the right to collect payments for the cumulative performance of the contract during the entire
contract period.For performance obligations performed within a certain period of time the Group recognizes
revenue according to the performance progress during that period. When the performance progress
cannot be reasonably determined if the cost incurred by the Group is expected to be compensated
the revenue shall be recognized according to the amount of the cost incurred until the performance
progress can be reasonably determined.For performance obligations performed at a certain point in time the Group recognizes revenue at
the point when the customer obtains control of the relevant goods or services. When judging
whether a customer has obtained control of goods or services the Group considers the following
signs:
* The Group enjoys the current right to receive payment for the goods or services.* The Group has transferred the legal ownership of the product to the customer.* The Group has transferred the goods in kind to the customer.* The Group has transferred the main risks and rewards of the ownership of the product to the
customer.
55* The customer has accepted the goods or services.
The Group has transferred goods or services to customers and the right to receive consideration is
listed as contract assets and contract assets are devalued on the basis of expected credit losses. The
Group's unconditional right to collect consideration from customers is listed as receivables. The
Group’s obligation to transfer goods or services to customers due to the consideration received from
customers is listed as contract liabilities.
(2) Principles of income measurement
* If the contract contains two or more performance obligations at the beginning of the contract the
Group will allocate the transaction price to each individual performance obligation based on the
relative proportion of the stand-alone selling price of the goods or services promised by each
individual performance obligation. Revenue is measured at the transaction price of each individual
performance obligation.* The transaction price is the amount of consideration that the Group expects to be entitled to
receive due to the transfer of goods or services to customers excluding payments collected on
behalf of third parties and payments expected to be returned to customers. The transaction price
confirmed by the Group does not exceed the amount at which the accumulated confirmed income
will most likely not undergo a significant reversal when the relevant uncertainty is eliminated. It is
expected that the money returned to the customer will not be included in the transaction price as a
liability.* If there is variable consideration in the contract such as cash discounts and price guarantees in
part of the contract between the Group and its customers the Group determines the best estimate of
the variable consideration according to the expected value or the most likely amount but includes
the variable The transaction price of the consideration shall not exceed the amount at which the
accumulated confirmed income is unlikely to be reversed significantly when the relevant
uncertainty is eliminated.* For the consideration payable to customers the Group offsets the transaction price from the
consideration payable to customers and offsets the current income at the time when the relevant
income is recognized and the payment (or promised to pay) the customer consideration is later
unless the consideration payable is for Obtain other clearly distinguishable products from
customers.* For sales with a sales return clause when the customer obtains control of the relevant product the
Group recognizes revenue based on the amount of consideration expected to be received due to the
transfer of the product to the customer and the expected return due to the sales return is recognized
as an estimated liability ; At the same time according to the expected book value of the returned
goods at the time of transfer the balance after deducting the estimated cost of recovering the goods
(including the value impairment of the returned goods) is recognized as an asset that is the return
56cost receivable according to the transferred goods The book value at the time of the transfer
deducting the net carry-over cost of the aforementioned asset cost. On each balance sheet date the
Group re-estimates the future sales returns and re-measures the aforementioned assets and
liabilities.* If there is a significant financing component in the contract the Group shall determine the
transaction price based on the amount payable in cash when the customer assumes control of the
goods or services. Using the discount rate that discounts the nominal amount of the contract
consideration into the current commodity price the difference between the determined transaction
price and the amount of the consideration promised in the contract is amortized by the actual interest
method during the contract period. On the starting date of the contract the Group expects that the
time between the customer's acquisition of control of the goods or services and the customer's
payment of the price will not exceed one year regardless of the significant financing components in
the contract.* According to contractual agreements legal provisions etc. the Group provides quality assurance
for the products sold and the assets built. For guarantee-type quality assurance to assure customers
that the goods sold meet the established standards the Group conducts accounting treatment in
accordance with "contingent events-estimated liabilities". For the service quality assurance that
provides a separate service in order to assure customers that the goods sold meet the established
standards the Group regards it as a single performance obligation based on the stand-alone selling
price of the quality assurance of goods and services. In a relative proportion part of the transaction
price is allocated to service quality assurance and revenue is recognized when the customer obtains
control of the service. When assessing whether the quality assurance provides a separate service in
addition to ensuring that the products sold meet the established standards the Group considers
whether the quality assurance is a legal requirement the quality assurance period and the nature of
the Group's commitment to perform the tasks.* When the construction contract between the Group and the customer is changed: * If the
contract change adds clearly distinguishable construction services and contract prices and the new
contract price reflects the stand-alone selling price of the new construction services the Group will
The contract change shall be treated as a separate contract for accounting treatment; * If the
contract change does not fall into the above-mentioned circumstance * and there is a clear
distinction between the construction services that have been transferred and the construction
services that have not been transferred on the date of the contract change the Group Treat it as the
termination of the original contract and at the same time merge the unfulfilled part of the original
contract and the changed part of the contract into a new contract for accounting treatment; * If the
contract change does not fall into the above situation * and the construction service has been
transferred on the date of contract change There is no clear distinction between the construction
service and the untransferred construction service. The Group accounts for the changed part of the
57contract as a component of the original contract. The resulting impact on the recognized revenue
will be adjusted on the date of contract change.
(3) Specific methods of revenue recognition
* Revenue recognized on time
The Group's sales of household appliances electronic components etc. belong to the performance
obligation performed at a certain point in time.Recognition conditions for income from domestic sales of goods and overseas direct sales of goods:
The Group has delivered the product to the customer in accordance with the contract and the
customer has received the product the payment has been recovered or the receipt of payment has
been obtained and the relevant economic benefits are likely to flow in. The main risks and rewards
have been transferred and the legal ownership of the goods has been transferred.Conditions for confirming the income of exported goods: The Group has declared the products for
export according to the contract obtained the bill of lading and delivered the goods to the carrier
entrusted by the purchaser. The payment has been recovered or the receipt of payment has been
obtained and relevant economic benefits are likely to flow in. The main risks and rewards of
commodity ownership have been transferred and the legal ownership of commodities has been
transferred.* Income confirmed according to the performance progress
The Group's business contracts with customers for project construction online advertising
operating leases etc. are performance obligations performed within a certain period of time and
revenue is recognized according to the progress of the performance.
34. Government Grants
The government grants of the Group are divided into asset-based grants related to and income-based
grants. Asset-based grants refer to the government grants for long-term assets obtained by the
purchase construction and other ways. Income-based grants refer to other grants. If the
beneficiaries are not specified in government documents the Group will make the distinction
according to the aforesaid principle. Beneficiaries which are difficult to categorize shall be
classified as an income-based government grant as a whole.Current elements of government grants shall be measured based on the amount actually received.Those shall be measured according to the amount receivable are grants paid according to a fixed
quota standard or funds that meet the relevant conditions stipulated by the financial support policy
with conclusive evidence at the end of the year and which are expected as the financial support.Non-monetary elements of the government grants shall be measured at fair value. Those whose fair
value cannot be obtained reliably shall be measured at its nominal amount (RMB1).
58Asset-based grants shall be used to offset the carrying value of related assets or presented as
deferred income and shall over the life of the related asset be included in the current profits and
losses by the equal amortization method.If the related asset is sold transferred scrapped or damaged before the end of its useful life its
deferred income that has not been distributed shall be transferred to the current profit and loss of
asset disposal.Income-based grants that are used to compensate related costs or losses in subsequent periods shall
be deemed as deferred income and shall be included in the current profits and losses during the
period when the related costs or losses are recognized. Government grants related to routine
activities shall be included in other income in accordance with the nature of the transaction.Government grants not related to routine activities shall be included in non-operating income and
expenditure.The Group obtains interest grants on policy-related concessional loans in two different ways: the
interest subsidy funds are allocated by the government either to the lending bank or directly to the
Group. The respective accounting treatment is carried out as follows:
(1) Where the government allocates the funds to the lending bank and the bank provides a loan to
the Group at a policy-related preferential interest rate the actual amount of the loan received is
taken as the entry value and the borrowing costs are calculated based on the loan principal and the
policy-related preferential interest rate.
(2) Where the government allocates the funds directly to the Group the grants are offset against
borrowing costs.Where the government grants that the Group has recognized in accounting need to be returned the
accounting treatment in the current period is carried out as follows:
1) If the book value of an asset is offset on initial recognition the book value will be adjusted;
2) If there is deferred income the book balance of the deferred income will be offset and the excess
will be included in profit or loss in the current period;
3) Under any other circumstances the grants will be included in profit or loss in the current period.
35. Deferred Income Tax Assets/Deferred Income Tax Liabilities
The Group's deferred tax assets and deferred tax liabilities are calculated and recognized based on
the difference (temporary difference) between the tax base and book value of the assets and
liabilities. In the case of deductible losses that can be deducted from taxable income in subsequent
years in accordance with the provisions of the tax laws the corresponding deferred income tax
assets are recognized. In the case of temporary differences arising from the initial recognition of
goodwill the corresponding deferred income tax liabilities are not recognized. With respect to
temporary differences arising from the initial recognition of an asset or liability in a transaction
59which isn’t a business combination and which affects neither accounting profit nor taxable income
(or deductible losses) the corresponding deferred income tax assets and deferred income tax
liabilities are not recognized. On the balance sheet date the deferred income tax assets and deferred
income tax liabilities are measured at the tax rate applicable to the period during which the assets are
expected to be recovered or the liabilities are expected to be settled.The Group recognizes deferred income tax assets to the extent of the taxable income which it is most
likely to obtain and which can be deducted from deductible temporary differences deductible losses
and tax credits.
36. Leasing
(1) Identification of leases
The term "lease" refers to a contract whereby the lessor transfers the right of use regarding the
leased asset(s) to the lessee within a specified time in exchange for consideration. On the
commencement date of the contract the Group assesses whether the contract is a lease or contains a
lease. If a party to the contract transfers the right allowing the control over the use of one or more
assets that have been identified within a certain period in exchange for a consideration such
contract is a lease or includes a lease. In order to determine whether a party to the contract transfers
the right allowing the control over the use of the identified assets for a certain period of time the
Group assesses whether the customers in the contract are entitled to obtain almost all the economic
benefits arising from the use of the identified assets during the use period and have the right to
dominate the use of the identified assets during the use period.If a contract contains multiple single leases at the same time the Group will split the contract and
conduct accounting treatment of each single lease respectively. If a contract contains both lease and
non-lease parts at the same time the Group will split the lease and non-lease parts for accounting
treatment.
(2) The Group as lessee
1) Lease recognition
On the commencement date of the lease term the Group recognizes the right-of-use assets and lease
obligations in respect of the lease. For the recognition and measurement of right-of-use assets and
lease liabilities please refer to Note IV "25. Right-of-use assets" and "31. Lease liabilities".
2) Lease change
A lease change refers to a change in the scope consideration and term of lease outside the original
contract clauses including the addition or termination of the one or several rights to use lease assets
and the extension or reduction of the lease term specified in the contract. The effective date of lease
change refers to the date when both parties reach an agreement on lease change.If the lease changes and the following conditions are met at the same time the Group will account
for the lease change as a separate lease: a) The lease change expands the lease scope or extends the
lease term by increasing the right to use one or more leased assets; b) The increased consideration is
equivalent to the separate price of the expanded lease scope or the extended lease term adjusted
according to the contract conditions.
60If the lease change is not accounted for as a separate lease on the effective date of the lease change
the Group will allocate the consideration of the changed contract in accordance with the relevant
provisions of the lease standards and re-determine the changed lease term. The revised rate of
discount is used to discount the changed lease payments to remeasure the lease liability. When
calculating the present value of the changed lease payments the Group uses the interest rate implicit
in lease as the rate of discount. If the interest rate implicit in lease cannot be determined the Group
adopts the incremental borrowing rate of the lessee on the effective date of the lease change as the
rate of discount. With regard to the impact of the above-mentioned lease liability adjustment the
Group conducts accounting treatment according to the following situations: a) The lessee will
correspondingly reduce the book value of the right-of-use assets and include the profit or loss of the
lease terminated in part or whole in the current profit or loss if the lease change narrows the scope
of lease or shortens the lease term. b) The lessee will correspondingly adjust the book value of the
right-of-use assets if other lease changes result in the re-measurement of the lease obligation.
3) Short-term and low-value asset leases
For short-term leases with a lease term not exceeding 12 months and low-value asset leases with
lower value when single leased assets are brand new assets the Group chooses not to recognize
right-of-use assets and lease liabilities. The Group includes the payments of short-term and
low-value asset leases incurred during each period of the lease term in the profit or loss for the
current period or the cost of relevant assets by the straight-line method.
(3) The Group as lessor
On the basis that (1) the contract assessed is a lease or includes a lease the Group as the lessor
classifies leases into finance leases and operating leases on the lease commencement date.If a lease substantially transfers virtually all risks and rewards associated with ownership of the
leased asset the lessor classifies the lease as a finance lease and leases other than finance leases as
operating leases.The Group usually classifies a lease that falls under any one or more of the following circumstances
as a finance lease: a) When the lease term expires the ownership of the leased asset is transferred to
the lessee; b) The lessee has the option to purchase the leased asset(s). As the agreed purchase price
is low enough compared with the fair value of the leased asset(s) at the time the option is expected to
be exercised it can be reasonably determined at the inception of the lease that the lessee will
exercise the option; c) Although the ownership of the assets is not transferred the lease term
accounts for most of the service life of the leased assets; d) On the lease commencement date the
present value of lease receipts is almost equivalent to the fair value of leased assets; e) The leased
assets are special in nature and only the lessee can use them without major renovation. The Group
may also classify a lease that falls under any one or more of the following circumstances as a finance
lease: a) If the lessee cancels the lease losses to the lessor caused by the cancellation will be borne
by the lessee; b) The gains or losses arising from the fluctuation of the fair value of the residual
value of assets belong to the lessee; c) The lessee has the ability to continue leasing until the next
term at a rent far below the market level.
1) Accounting treatment of finance leases
Initial measurement
On the commencement date of the lease term the Group recognizes the finance lease receivables for
61the finance lease and derecognizes the leased asset of the finance lease. It recognizes the net
investment in the lease as the entry value of the finance lease when initially measuring the finance
lease receivable.The net investment in the lease is the sum of the net value of the unguaranteed residual value and the
lease receivable not received on the commencement date of the lease term at the interest rate implicit
in lease. Lease collection amount refers to the amount that the lessor should collect from the lessee
for transferring the right to use the leased assets during the lease term including: a) Fixed payment
amount and substantial fixed payment amount that the lessee needs to pay. If there is lease incentive
deduct the amount related to lease incentive; b) The variable lease payment depending on the index
or ratio which is determined according to the index or ratio on the commencement date of the lease
term at the initial measurement; c) The exercise price of the purchase option provided that it is
reasonably determined that the lessee will exercise the option; d) The amount to be paid by the
lessee to exercise the option to terminate the lease provided that the lease term reflects that the
lessee will exercise the option to terminate the lease; e) The residual value of guarantee provided to
the lessor by the lessee the party related to the lessee and an independent third party that has the
financial ability to fulfill the guarantee obligation.Follow-up measurement
The Group calculates and confirms the interest income at a fixed periodic rate in each period in the
lease term. Periodic rate refers to the rate of discount implicit in lease adopted to determine the net
investment in the lease (in the case of sublease if the interest rate implicit in lease of sublease cannot
be determined the rate of discount implicit in original lease is adopted (adjusted according to the
initial direct expenses related to sublease)) or the revised rate of discount determined in accordance
with the relevant provisions where the change of the finance lease is not accounted for as a separate
lease and meets the condition that the lease will be classified as a finance lease if the change became
effective on the lease commencement date.Accounting treatment of lease change
If the lease changes and the following conditions are met at the same time the Group will account
for the lease change as a separate lease: a) The lease change expands the lease scope by increasing
the right to use one or more leased assets; b) The increased consideration is equivalent to the
separate price of the expanded lease scope adjusted according to the contract conditions.If the change of finance lease is not accounted for as a separate lease and the condition that the lease
will be classified as an operating lease if the change takes effect on the lease commencement date is
met the Group will account for it as a new lease from the effective date of the lease change and take
the net lease investment before the effective date of the lease change as the book value of the leased
asset.
2) Accounting treatment of operating leases
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
62income during the rent-free period. If certain expenses of the lessee are borne the Group allocates
the balance of rental income over the lease term after such expenses are deducted from the gross
rental income.Initial direct cost
Initial direct expenses incurred by the Group in connection with operating leases shall be capitalized
to the cost of the leased underlying asset and recorded in the profits and losses of the current period
in stages over the lease term on the same basis of recognition as rental income.Depreciation
For the fixed assets in the assets under operating lease the Group adopts the depreciation policy of
similar assets to calculate and distill depreciation. For other assets under operating lease the Group
amortizes them in a systematic and reasonable manner.Variable lease payments
Variable lease payments made by the Group in relation to operating leases that are not included in
the lease receivable are included in the current profit or loss when they are actually incurred.Change of operating leases
If an operating lease changes the Group will regard it as a new lease for accounting treatment
from the effective date of the change. The advance receipt or the lease receivable related to the lease
prior to the change is recognized as the payment receivable of the new lease.
37. Changes in Main Accounting Policies and Estimates
(1) Changes of accounting policies
The Ministry of Finance issued the Accounting Standards for Business Enterprises Interpretation
No. 17 (C.K. [2023] No. 21) (hereinafter referred to as “Interpretation No. 17”) on 25 October
2023.
* Since 1 January 2024 the Group starts to implement the regulation of the Interpretation No. 17
issued by the Ministry of Finance regarding the classification of current liabilities and non-current
liabilities which has no impacts on the financial statements of the Company.* Since 1 January 2024 the Group starts to implement the regulation of the Interpretation No.
17 issued by the Ministry of Finance regarding the disclosure of the financing arrangement of
suppliers which has no impacts on the financial instatements of the Company.* Since 1 January 2024 the Group starts to implement the regulation of the Interpretation No.
17 issued by the Ministry of Finance regarding the accounting treatment for sale-leaseback
transactions which has no impacts on the financial statements of the Company.
(2) Changes in Accounting Estimates
No such cases in the Reporting Period.
63V. Taxation
1. Main Taxes and Tax Rate
Category of taxes Basis Specific situation of the taxes rate
Calculated the output tax at
the tax rate and paid the VAT
by the amount after deducting
the deductible withholding
VAT VAT at current period of 1% 3% 5% 6% 9% 13%
which the VAT applicable to
easy collection won’t belong
to the deductible withholding
VAT.Paid at 5% by subsidiaries including:
Dongguan Konka XingDa HongYe
Xinfeng Microcrystalline Boluo Konka
Precision Boluo Konka Ningbo
Kanghanrui Jiangsu Konka Smart Yibin
Kangrun Yibin Kangrun Medical Konka
Ronghe Chain Kingdom Semiconductor
(Shaoxing) Guizhou Kanggui Materials
Zhejiang Konka Electronic Songyang
Konka Intelligent
Paid reduced by half at 7% by subsidiaries
Urban
The circulating tax actually including: Liaoyang Kangshun Renewable
maintenance and
paid Zhitong Technology Yibin Smart
construction tax
Shenzhen Nianhua Anlu Konka Jiangxi
Konka High-tech Park Kanghong Xintong
Paid reduced by half at 5% by subsidiaries
including: Jiangkang (Shanghai)
Technology Guizhou Konka New Material
Guizhou Konka New Energy Zhejiang
Konka Technology Industry
Paid at 1%: Jiangxi Konka Jiangxi High
Transparent Substrate
Paid at 7%: other subsidiaries.Paid reduced by half at 3% by subsidiaries
including: Liaoyang Kangshun Renewable
Zhitong Technology Yibin Smart
The circulating tax actually Shenzhen Nianhua Anlu Konka Jiangxi
Education surtax
paid Konka High-tech Park Kanghong Xintong
Jiangkang (Shanghai) Technology Zhejiang
Konka Technology Industry
Paid at 3%: other subsidiaries.Paid reduced by half at 2% by subsidiaries
including: Liaoyang Kangshun Renewable
Local education The circulating tax actually
surtax paid Zhitong Technology Yibin Smart
Shenzhen Nianhua Anlu Konka Jiangxi
Konka High-tech Park Kanghong Xintong
64Category of taxes Basis Specific situation of the taxes rate
Jiangkang (Shanghai) Technology Zhejiang
Konka Technology Industry
Paid at 2%: other subsidiaries.Enterprise income 25%/ See 2.Tax Preference and Approved
Taxable income
tax Documents for details
The main taxpayers of different corporate income tax rates are explained as follows:
Name of entity Income tax rate
Electronics Technology Anhui Konka Anhui
Tongchuang Shanxi Konka Jiangsu Konka
Xinfeng Microcrystalline Boluo Precision 15%
Chengdu Konka Electronic Xiaojia Technology
Hong Kong Konka Hongdin Trading Jiali
International Hongjet Jiaxin Technology Hongdin
16.5%
Invest Konka Mobility Kowin Memory (Hong
Kong)
Chain Kingdom Memory Technologies 16.5%
Konka Europe 15%
Kanghao Technology 22.5%
Konka North America 21%
The Company as the Parent and other subsidiaries 25%
Note: According to regulations of Temporary Provisions of Income Tax of Trans-boundary Tax
Payment Enterprises by State Administration of Taxation resident enterprises without business
establishment or places of legal persons should be tax payment enterprises with the administrativemeasures of income tax of “unified computing level-to-level administration local prepaymentliquidation summary and finance transfer”. It came into force from 1 January 2008. According to
the above methods the Company’s sales branch companies in each area will hand in the corporate
income taxes in advance from 1 January 2008 and will be final settled uniformly by the Company
at the year-end.
2. Tax Preference and Approved Documents
(1) According to the announcement of the State Administration of Taxation No. 12 of 2023: Small
enterprises with small profits shall reduce the taxable income amount by 25% and pay the
corporate income tax at the tax rate of 20% which shall be continued until 31 December 2027.
(2) On 18 October 2022 Anhui Konka a subsidiary of the Company obtained the Certificate of
High-Tech Enterprise jointly issued by the Department of Science and Technology of Anhui
Province the Department of Finance of Anhui Province and the Taxation Bureau of Anhui
65Province of the State Administration of Taxation with the certificate number GR202234002272
which is valid for three years. In accordance with the relevant tax regulations Anhui Konka is
entitled to the relevant tax incentives for three consecutive years from 2022 to 2024 to enjoy the
relevant tax preferential policies on high-tech enterprises and pay enterprise income tax at a
preferential tax rate of 15%.
(3) On 4 November 2022 Xinfeng Microcrystalline a subsidiary of the Company obtained the
Certificate of High-Tech Enterprise jointly issued by the Department of Science and Technology
of Jiangxi Province the Department of Finance of Jiangxi Province and the Taxation Bureau of
Jiangxi Province of the State Administration of Taxation with the certificate number
GR202236000999 which is valid for three years. According to the relevant tax regulations
Xinfeng Microcrystalline is entitled to the relevant tax incentives for three consecutive years from
2022 to 2024 to enjoy the relevant tax preferential policies on high-tech enterprises and pay
enterprise income tax at a preferential tax rate of 15%.
(4) On 18 October 2022 Anhui Tongchuang a subsidiary of the Company obtained the
Certificate of High-Tech Enterprise jointly issued by the Department of Science and Technology
of Anhui Province the Department of Finance of Anhui Province and the Taxation Bureau of
Anhui Province of the State Administration of Taxation with the certificate number
GR202234000798 which is valid for three years. In accordance with the relevant tax regulations
Anhui Tongchuang is entitled to the relevant tax incentives for three consecutive years from 2022
to 2024 to enjoy the relevant tax preferential policies on high-tech enterprises and pay enterprise
income tax at a preferential tax rate of 15%.
(5) On 22 December 2022 Boluo Precision a subsidiary of the Company obtained the "High-tech
Enterprise Certificate" jointly issued by Department of Science and Technology of Guangdong
Province Department of Finance of Guangdong Province and Guangdong Provincial Tax Service
of State Taxation Administration (No. GR202244017658) which will be valid for three years.According to relevant tax regulations Boluo Precision enjoys relevant preferential tax policies for
high-tech enterprises for three consecutive years from 2022 to 2024 and pays enterprise income
tax at a reduced rate of 15%.
(6) On 19 December 2022 Electronic Technology a subsidiary of the Company received the
Certificate of High-Tech Enterprise jointly issued by Shenzhen Science and Technology
Innovation Committee Shenzhen Finance Bureau and Shenzhen Taxation Bureau of the State
Administration of Taxation with the certificate number GR202244205867 which is valid for
three years. In accordance with the relevant tax regulations Electronic Technology is entitled to
the relevant tax incentives for three consecutive years from 2022 to 2024 to enjoy the relevant tax
preferential policies on high-tech enterprises and pay enterprise income tax at a preferential tax
rate of 15%.
(7) On 19 December 2022 Xiaojia Technology a subsidiary of the Company received the
Certificate of High-Tech Enterprise jointly issued by Shenzhen Science and Technology
Innovation Committee Shenzhen Finance Bureau and Shenzhen Taxation Bureau of the State
Administration of Taxation with the certificate number GR202244203274 which is valid for
three years. In accordance with the relevant tax regulations Xiaojia Technology is entitled to the
relevant tax incentives for three consecutive years from 2022 to 2024 to enjoy the relevant tax
66preferential policies on high-tech enterprises and pay enterprise income tax at a preferential tax
rate of 15%.
(8) On 29 November 2023 Shanxi Konka a subsidiary of the Company obtained the "High-tech
Enterprise Certificate" jointly issued by Department of Science and Technology of Shanxi
Province Department of Finance of Shanxi Province and Shanxi Provincial Tax Service of State
Taxation Administration (No. GR202361002167) which will be valid for three years. According
to relevant tax regulations Shanxi Konka enjoys relevant preferential tax policies for high-tech
enterprises for three consecutive years from 2023 to 2025 and pays enterprise income tax at a
reduced rate of 15%.
(9) On 6 November 2023 Jiangsu Konka a subsidiary of the Company obtained the "High-tech
Enterprise Certificate" jointly issued by Department of Science and Technology of Jiangsu
Province Department of Finance of Jiangsu Province and Jiangsu Provincial Tax Service of State
Taxation Administration (No. GR202332008044) which will be valid for three years. According
to relevant tax regulations Jiangsu Konka enjoys relevant preferential tax policies for high-tech
enterprises for three consecutive years from 2023 to 2025 and pays enterprise income tax at a
reduced rate of 15%.
(10) In accordance with the Announcement on the Renewal of the Enterprise Income Tax Policy
for Western Development Enterprises (Ministry of Finance General Administration of Taxation
National Development and Reform Commission Announcement No. 23 of 2020) an enterprise
established in the western region who is mainly engaged in an industry specified in the Catalogue
of Encouraged Industries in the Western Region and whose main business income accounts for
over 60% of its gross income in the current year is entitled to a reduced corporate income tax rate
of 15%. Chengdu Konka Electronic a subsidiary of the Company is eligible for this preferential
tax policy.
(11) According to the fiscal and taxation document [2011] No. 100 published by the Ministry of
Finance and the State Administration of Taxation for the VAT general taxpayers who sell their
self-developed and produced software products the VAT shall be levied at the rate of 13% and
then the part that the actual tax burden on their VAT exceeds 3 will be implemented with the
policy of immediate withdrawal. The Company’s subsidiaries Electronics Technology and Anhui
Tongchuang all enjoy this preferential policy.VI. Notes to Major Items in the Consolidated Financial Statements of the
Company
Unless otherwise noted the following annotation project (including the main projects
annotation of the financial statement of the Company) the period-begin refers to 1 January
2024 the period-end refers to 30 June 2024 this period refers to the period from 1 January
2024 to 30 June 2024 and the previous period refers to the period from 1 January 2023 to 30
June 2023. The monetary unit is renminbi.
1. Monetary assets
Item Closing balance Opening balance
Cash on hand 469.28
67Item Closing balance Opening balance
Bank deposits 4599678470.84 5892986243.07
Other monetary assets 914692108.59 613372864.67
Total 5514370579.43 6506359577.02
Of which: Total amount deposited overseas 64430289.51 55324772.13
Note: The closing balance of other monetary funds is mainly the balance of time deposits margin
deposits and account balance on WeChat Alipay and other platforms. For details of restricted
funds please refer to Note VI-23 Assets with restricted ownership or use right.
2. Held-for-trading financial assets
Item Closing balance Opening balance
Financial assets at fair value through profit or loss 294937209.31 469636700.78
Including: Investment in equity instruments 294937209.31 469636700.78
Total 294937209.31 469636700.78
3. Notes receivable
（1） Classified presentation of notes receivable
Item Closing balance Opening balance
Banker's acceptance 285785824.21 517759367.29
Commercial acceptance draft 16201812.90 15412581.86
Total 301987637.11 533171949.15
（2） Listed by withdrawal methods for provision for bad debts
Closing balance
Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
Provision set aside for
bad debts by the
single item
Provision set aside for
302325037.03100.00337399.920.11301987637.11
bad debts by portfolio
Of which: Banker's
285785824.2194.53285785824.21
acceptance
68Closing balance
Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
Commercial
16539212.825.47337399.922.0416201812.90
acceptance draft
Total 302325037.03 100.00 337399.92 0.11 301987637.11
(Continued)
Opening balance
Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
Provision set aside for
bad debts by the
single item
Provision set aside for
533492913.47100.00320964.320.06533171949.15
bad debts by portfolio
Of which: Banker's
517759367.2997.05517759367.29
acceptance
Commercial
15733546.182.95320964.322.0415412581.86
acceptance draft
Total 533492913.47 100.00 320964.32 0.06 533171949.15
Provision for expected credit losses on commercial acceptance draft based on aging in the
portfolio
Closing balance
Name
Provision
Book balance Provision for bad debts
percentage (%)
Within one year 16539212.82 337399.92 2.04
Total 16539212.82 337399.92 2.04
（3） Provision for bad debts of notes receivable set aside recovered or reclassified in
the Reporting Period
Change in the current year
Opening Closing
Category Charge-off
balance Recovery or balance
Provision or Others
reclassification
write-off
69Change in the current year
Opening Closing
Category Charge-off
balance Recovery or balance
Provision or Others
reclassification
write-off
Commercial
320964.3229365.3312929.73337399.92
acceptance draft
Banker's
acceptance
Total 320964.32 29365.33 12929.73 337399.92
（4） Notes receivable pledged at the end of the period
Item Amount pledged at the end of the period
Banker's acceptance 135131288.11
Commercial acceptance draft
Total 135131288.11
（5） Notes receivable endorsed or discounted but had not yet matured on the balance
sheet date at the end of the period
Amount derecognised at the end Amount not derecognised at the
Item
of the period end of the period
Banker's acceptance 1263789633.51
Commercial acceptance draft 13712030.20
Total 1263789633.51 13712030.20
（6） Notes receivable actually written off in the current period
There were no significant write-offs of notes receivable in the current period.
4. Accounts receivable
（1） Accounts receivable listed by aging portfolio
Book balance at the
Aging Book balance at the period-end
period-begin
Within one year (inclusive) 1398638104.01 1489573102.24
One to two years 347323499.85 152217296.67
Two to three years 181933992.96 131889796.60
Three to four years 232579903.76 265897663.73
Four to five years 286691759.72 674517508.86
Over five years 1028121298.28 894028569.23
70Book balance at the
Aging Book balance at the period-end
period-begin
Total 3475288558.58 3608123937.33
（2） Accounts receivable listed by withdrawal methods for bad debts
Closing balance
Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
Provision set
aside for bad
1395605627.8640.161266377364.8290.74129228263.04
debts by the
single item
Provision set
aside for bad
debts by
portfolio
Of which:
2079682930.7259.84351949753.5316.921727733177.19
Aging portfolio
Subtotal of
2079682930.7259.84351949753.5316.921727733177.19
portfolio
Total 3475288558.58 100.00 1618327118.35 46.57 1856961440.23
(Continued)
Opening balance
Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
Provision set
aside for bad
1601967285.0444.401524090371.0195.1477876914.03
debts by the
single item
Provision set
aside for bad
debts by
portfolio
Of which:
2006156652.2955.60357487593.2417.821648669059.05
Aging portfolio
Subtotal of
2006156652.2955.60357487593.2417.821648669059.05
portfolio
Total 3608123937.33 100.00 1881577964.25 52.15 1726545973.08
711） Provision set aside for bad debts of accounts receivable by single item
Opening balance Closing balance
Name Provision Reasons
Provision for Provision for
Book balance Book balance percentage for the
bad debts bad debts
(%) provision
Shanghai
Expected
Huaxin
to be
International 299136676.70 293153943.17 298855950.30 292878831.29 98.00
difficult to
Group Co.recover
Ltd.Hongtu
Expected
Sanbao
to be
High-tech 200000000.00 180000000.00 200000000.00 180000000.00 90.00
difficult to
Technology
recover
Co. Ltd.Shenzhen Not
Yaode expected to
145562210.29145562210.29146468551.71146468551.71100.00
Technology be
Co. Ltd. recoverable
Guangan
Expected
Ouqishi
to be
Electronic 113140553.53 110965942.46 113140553.53 110965942.46 98.08
difficult to
Technology
recover
Co. Ltd.Zhongfu
Expected
Tiangong
to be
Construction 71389096.65 53541822.49 71289096.65 53466822.49 75.00
difficult to
Group Co.recover
Ltd.Gome
Customization Not
(Tianjin) expected to
59569295.0259569295.0257021975.7357021975.73100.00
Home be
Appliances recoverable
Co. Ltd.CCCC First Not
Harbor expected to
55438105.0055438105.0065221300.0065221300.00100.00
Engineering be
Company Ltd. recoverable
Not
Xingda
expected to
Hongye (Hk) 51902301.95 51902301.95 51902301.95 51902301.95 100.00
be
Limited
recoverable
Dongguan
Expected
High Energy
to be
Polymer 50699037.70 32893535.66 50699037.70 32893535.66 64.88
difficult to
Materials Co.recover
Ltd.Not
China Energy
expected to
Electric Fuel 50000000.00 50000000.00 49993564.16 49993564.16 100.00
be
Co. Ltd.recoverable
Expected
Others 505130008.20 491063214.97 291013296.13 225564539.37 77.51 to be
difficult to
72Opening balance Closing balance
Name Provision Reasons
Provision for Provision for
Book balance Book balance percentage for the
bad debts bad debts
(%) provision
recover
Total 1601967285.04 1524090371.01 1395605627.86 1266377364.82
2） Provision set aside for bad debts of accounts receivable by portfolio
Closing balance
Aging
Provision for bad Provision percentage
Book balance
debts (%)
Within one year 1336869720.64 27272142.13 2.04
One to two years 327253283.46 32790779.07 10.02
Two to three years 111580526.11 25317621.37 22.69
Three to four years 106521040.82 69110851.27 64.88
Four to five years 16541028.26 16541028.26 100.00
Over five years 180917331.43 180917331.43 100.00
Total 2079682930.72 351949753.53 16.92
（3） Provision for bad debts of accounts receivable set aside recovered or reclassified
in the current period
Change in the current year
Category Opening balance
Recovery or
Provision
reclassification
Provision for bad debts
1881577964.2550338166.4124347173.17
of accounts receivable
Total 1881577964.25 50338166.41 24347173.17
(Continued)
Change in the current year
Category Closing balance
Decrease for other
Charge-off or write-off
reasons
Provision for bad debts
289241839.141618327118.35
of accounts receivable
Total 289241839.14 1618327118.35
73Note: Decreases for other reasons were RMB-1805743.22 due to exchange rate changes and the
decrease by RMB291047582.36 due to the loss of controlling right.
（4） Accounts receivable actually written off in the current period
There are no actually written-off accounts receivable in this period.
（5） Top five accounts receivable and contract assets in the closing balance
categorised by debtors
The total amount of accounts receivable with top five closing balance categorised by debtors in the
current period was RMB1446160600.23 accounting for 41.61% of the total closing balance of
accounts receivable. The total closing balance of provision for bad debts correspondingly set aside
was RMB656491796.91.
5. Contract assets
（1） Contract assets
Closing balance Opening balance
Item Provision Provision
Book Carrying
Book balance for bad Carrying value for bad
balance value
debts debts
Accounts
receivable for
settled items
2769083.6856489.312712594.372236000.3445614.412190385.93
that are not
unconditionally
paid
Total 2769083.68 56489.31 2712594.37 2236000.34 45614.41 2190385.93
（2） Classified presentation of contract assets by provisioning methods of bad debts
Closing balance
Book balance Provision for bad debts
Category
Carrying
Proportion Provision value
Amount Amount
(%) percentage (%)
Provision set aside for
bad debts by the single
item
Provision set aside for
bad debts by portfolio
Of which: Aging
2769083.68100.0056489.312.042712594.37
portfolio
Subtotal of portfolio 2769083.68 100.00 56489.31 2.04 2712594.37
Total 2769083.68 100.00 56489.31 2.04 2712594.37
74Opening balance
Book balance Provision for bad debts
Category
Carrying
Proportion Provision value
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
（3） Provision set aside for bad debts of contract assets by portfolio
Closing balance
Aging
Provision
Book balance Provision for bad debts
percentage (%)
Within one year 2769083.68 56489.31 2.04
Total 2769083.68 56489.31 2.04
（4） Provision for bad debts of contract assets set aside recovered or reclassified in
the current period
Recovery or
Provision in the Charge-off/Write-off
Item reclassification in Reasons
current period in the current period
the current period
Accounts receivable
for settled items
that are not 10874.90 Normal provision
unconditionally
paid
Total 10874.90
（5） Contract assets actually written off in the current period
There were no contract assets actually written off in the current period.
6. Accounts receivable financing
Item Closing balance Opening balance
Notes receivable 203279738.30 173396326.14
Total 203279738.30 173396326.14
7. Other accounts receivable
75Item Closing balance Opening balance
Interest receivable 7770148.68 6681258.01
Dividends receivable 14705644.62 941482.38
Other accounts receivable 807052840.99 981498327.12
Total 829528634.29 989121067.51
7.1 Interest receivable
Item Closing balance Opening balance
Interest on term deposits 7770148.68 6681258.01
Total 7770148.68 6681258.01
7.2 Dividends receivable
（1） Category of dividends receivable
Item (or investee) Closing balance Opening balance
Shenzhen Jielunte Technology Co.
941482.38
Ltd.Chutian Dragon Co. Ltd. 4240444.62
Wuhan Tianyuan Environmental
10465200.00
Protection Co. Ltd.Total 14705644.62 941482.38
7.3 Other receivables
（1） Other receivables classified by account nature
Book balance at the end of the Book balance at the beginning
Nature of fund
period of the period
Deposit and margin 344926113.50 1234840210.69
Intercourse funds among minority
shareholders in the business consolidation
181205407.34179663586.05
not under the same control and related
parties
Energy-saving subsidies receivable 152399342.00 152399342.00
Others 2961254595.30 1496129924.02
Total 3639785458.14 3063033062.76
（2） Other receivables listed by aging
Book balance at the end of the Book balance at the beginning
Aging
period of the period
Within one year 69465860.34 253550068.51
76One to two years 84541478.76 77519916.42
Two to three years 365391923.70 551521166.18
Three to four years 835835984.39 690507047.29
Four to five years 534137348.24 1092957617.71
Over five years 1750412862.71 396977246.65
Total 3639785458.14 3063033062.76
（3） Classified presentation of other receivables by provisioning methods of bad debts
Closing balance
Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
Other receivables
of expected credit
2540492875.9769.802241666571.9888.24298826303.99
losses set aside by
single item
Other receivables
of provision for
bad debts set aside
by credit risk
characteristic
portfolio:
Of which: Aging
961885583.8926.42560823547.3958.30401062036.50
portfolio
Low-risk portfolio 137406998.28 3.78 30242497.78 22.01 107164500.50
Subtotal of
1099292582.1730.20591066045.1753.77508226537.00
portfolio
Total 3639785458.14 100.00 2832732617.15 77.83 807052840.99
(Continued)
Opening balance
Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
Other receivables
of expected credit
1960682465.2964.011644122039.5383.85316560425.76
losses set aside by
single item
Other receivables
of provision for
bad debts set aside
by credit risk
characteristic
77Opening balance
Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
portfolio:
Of which: Aging
975322848.9931.84413933906.3942.44561388942.60
portfolio
Low-risk portfolio 127027748.48 4.15 23478789.72 18.48 103548958.76
Subtotal of
1102350597.4735.99437412696.1139.68664937901.36
portfolio
Total 3063033062.76 100.00 2081534735.64 67.96 981498327.12
1） Provision set aside for bad debts of other receivables by portfolio
Closing balance
Aging
Provision for bad Provision percentage
Book balance
debts (%)
Within one year 54240251.77 837915.76 1.54
One to two years 56548914.22 2984352.63 5.28
Two to three years 260548432.36 54329136.75 20.85
Three to four years 535245817.07 343779819.69 64.23
Four to five years 58706234.60 55131888.19 93.91
Over five years 134002932.15 134002932.15 100.00
Total 1099292582.17 591066045.17 53.77
2） Provision set aside for bad debts of other receivables by the general expected credit
loss model
Phase I Phase II Phase III
Provision for bad Expected credit loss Expected credit loss Expected
debts during the whole during the whole
Total
credit loss for
outstanding outstanding
the next 12
maturity (without maturity (with
months
credit impairment) credit impairment)
Balance as of 1
1443228.60435969467.511644122039.532081534735.64
January 2024
Balance as of 1
January 2024 in the -756286.95 740212.80 16074.15
current period
-- Transferred to -756286.95 756286.95
78Phase I Phase II Phase III
Provision for bad Expected credit loss Expected credit loss Expected
during the whole during the whole Total debts credit loss for
outstanding outstanding
the next 12
maturity (without maturity (with
months
credit impairment) credit impairment)
Phase II
-- Transferred to
-16074.1516074.15
Phase III
-- Reclassified under
Phase II
-- Reclassified under
Phase I
Provision in the
153571711.071541821.29155113532.36
current period
Recovery in the
1119050.04-44896.7016967374.6818041528.02
current period
Charge-off in the
current period
Write-off in the
current period
Other changes 1270024.15 -98158.67 612954011.69 614125877.17
Balance as at 30 June
837915.76590228129.412241666571.982832732617.15
2024
Note: The first stage is that credit risk has not increased significantly since initial recognition. For
other receivables with an aging portfolio and a low-risk portfolio within one year the loss
provision is measured according to the expected credit losses in the next 12 months.The second stage is that credit risk has increased significantly since initial recognition but credit
impairment has not yet occurred. For other receivables with an aging portfolio and a low-risk
portfolio that exceed one year the loss provision is measured based on the expected credit losses
for the entire duration.The third stage is the credit impairment after initial confirmation. For other receivables of credit
impairment that have occurred the loss provision is measured according to the credit losses that
have occurred throughout the duration.
（4） Provision for bad debts of other receivables set aside recovered or reclassified in
the current period
Change in the current period
Categ Opening Char
ge-off Closing balance ory balance Recovery or
Provision or Others
reclassification
write-
off
Provis 2081534735.64 155113532.36 18041528.02 -614125877.17 2832732617.15
79Change in the current period
Categ Opening Char
ge-off Closing balance ory balance Recovery or
Provision or Others
reclassification
write-
off
ion for
bad
debts
of
other
receiv
ables
Total 2081534735.64 155113532.36 18041528.02 -614125877.17 2832732617.15
Note: Decreases for other reasons were RMB-1330923.76 due to exchange rate changes and the
decrease by RMB612794944.33 due to the loss of controlling right.
（5） Other receivables actually written off in the current period
There were no other receivables actually written off for the Reporting Period.
（6） Top five other accounts receivable in the closing balance categorised by debtors
The total amount of other receivables with top five closing balance categorised by debtors in the
current year was RMB2986256781.60 accounting for 82.04% of the total closing balance of
other receivables. The total closing balance of provision for bad debts correspondingly set aside
was RMB2370741736.67.
8. Prepayments
（1） Age of prepayments
Closing balance Opening balance
Item
Amount Proportion (%) Amount Proportion (%)
Within one year 85269826.19 61.25 114332392.60 69.10
One to two years 10668862.35 7.66 827985.04 0.50
Two to three years 41876819.11 30.08 46545996.66 28.13
Over three years 1403791.35 1.01 3747937.21 2.27
Total 139219299.00 100.00 165454311.51 100.00
Note: The amount of advanced payments aged over one year at the end of the period is
RMB53949472.81 accounting for 38.75% of the total balance of advanced payments of the
Company and consists mainly of unavailability of funds or unsettled payments.
（2） Top five prepayments in the closing balance categorised by payees
80The total amount of prepayments with top five closing balance categorised by payees was
RMB102365394.64 accounting for 73.53% of the total closing balance of prepayments.
9. Inventory
（1） Inventory classification
Closing balance
Provision for
Item inventory
Book balance impairment/for Carrying value
contract fulfilment
cost impairment
Raw materials 732595142.46 75967089.52 656628052.94
Semi-finished products 101913886.80 46991125.84 54922760.96
Commodities in stock 2656510493.28 465581487.44 2190929005.84
Commissioned products 2218974.86 212731.64 2006243.22
Development costs 500050965.12 500050965.12
Total 3993289462.52 588752434.44 3404537028.08
(Continued)
Opening balance
Provision for
Item inventory
Book balance impairment/for Carrying value
contract fulfilment
cost impairment
Raw materials 593131602.70 86829664.81 506301937.89
Semi-finished products 96408258.96 41741196.19 54667062.77
Commodities in stock 2636678840.40 490032803.73 2146646036.67
Commissioned products 1934264.95 211225.91 1723039.04
Development costs 540559624.61 540559624.61
Total 3868712591.62 618814890.64 3249897700.98
（2） Inventory falling price reserves and impairment provision of contract
performance costs
Increase in the current year
Item Opening balance
Withdrawal Others
Raw materials 86829664.81 13078363.92
81Increase in the current year
Item Opening balance
Withdrawal Others
Semi-finished products 41741196.19 9074809.14
Commodities in stock 490032803.73 58956623.28
Commissioned products 211225.91
Total 618814890.64 81109796.34
(Continued)
Decrease in the current year
Item Closing balance
Write-off Others
Raw materials 23902301.61 38637.60 75967089.52
Semi-finished products 3824879.49 46991125.84
Commodities in stock 82450133.39 957806.18 465581487.44
Commissioned products -1505.73 212731.64
Total 110177314.49 994938.05 588752434.44
Specific basis for determining the realisable net value and reasons for inventory falling price
reserves and impairment provision for contract performance costs transferred back or written off
during the Reporting Period:
Reasons for charge-off of provision
Specific basis for withdrawal of
Item for inventories impairment in the
inventory falling price reserves
current year
The realisable net value was lower than They have been sold or used in the
Raw materials
the carrying value current period
The realisable net value was lower than They have been sold or used in the
Semi-finished products
the carrying value current period
The realisable net value was lower than They have been sold in the current
Commodities in stock
the carrying value period
10. Other current assets
Item Closing balance Opening balance
Principal and interests of entrusted loans to
1789416914.111744123316.97
associated enterprises
Prepayments and deductible taxes and
525792569.13569875346.61
refund of tax for export receivable
Deferred expenses 31816213.30 28112001.12
82Item Closing balance Opening balance
Costs receivable for returning goods 14031714.93 15925346.67
Others 757591.13 1123457.38
Total 2361815002.60 2359159468.75
8313. Long-term equity investment
Changes in the current period
Investee Opening balance Profit or loss of Changes in other
Increase in the Decrease in the Cost method to equity
investment recognised comprehensive
investment investment method
by the equity method income
Konka Ventures Development (Shenzhen)
5004579.62109011.09
Co. Ltd.Nanjing Zhihuiguang Information
2019287.3622211.40
Technology Research Institute Co. Ltd.Feidi Technology (Shenzhen) Co. Ltd. 10706907.72 3224155.07
Shenzhen Kangyue Enterprise Co. Ltd.Foshan Zhujiang Media Creative Park
Cultural Development Co. Ltd.Kangkai Technology Service (Chengdu)
114193.7910500.00
Co. Ltd.Puchuang Jiakang Technology Co Ltd. 2716274.71 462390.15
Shenzhen Jielunte Technology Co. Ltd. 94917575.00 -6341750.17
Panxu Intelligence Co. Ltd. 48686477.11 -1154019.69
Orient Excellent (Zhuhai) Asset
8198574.99429295.82
Management Co. Ltd.Dongfang Jiakang No.1 (Zhuhai) Private
338089300.421768886.32906768.44
Equity Investment Fund (LP)
84Changes in the current period
Investee Opening balance Profit or loss of Changes in other
Increase in the Decrease in the Cost method to equity
investment recognised comprehensive
investment investment method
by the equity method income
Tongxiang Wuzhen Kunyu Venture Capital
3524037.081940.11
Investment Co. Ltd.Shenzhen RF-Llink Technology Co. Ltd.Anhui Kaikai Shijie E-commerce Co. Ltd. 418814414.98 -5828645.96
Kunshan Kangsheng Investment
207333483.86-3336356.30
Development Co. Ltd.Shanxi Silk Road Cloud Intelligent Tech
5187588.48-669600.90
Co. Ltd.Shenzhen Kanghongxing Intelligent
Technology Co. Ltd.Shenzhen Zhongkang Beidou Technology
Co. Ltd. (formerly named: Shenzhen
Zhongbing Konka Technology Co. Ltd.)
Shenzhen Yaode Technology Co. Ltd.Wuhan Tianyuan Environmental Protection
512729351.1117245673.07
Co. Ltd.Chuzhou Konka Technology Industry
39335548.57-4638032.20
Development Co. Ltd.Chuzhou Kangjin Health Industrial
239037618.98-3469664.26
Development Co. Ltd.
85Changes in the current period
Investee Opening balance Profit or loss of Changes in other
Increase in the Decrease in the Cost method to equity
investment recognised comprehensive
investment investment method
by the equity method income
Nantong Kangjian Technology Industrial
107310029.86
Park Operations and Management Co. Ltd.Chuzhou Kangxin Health Industry
180752809.79-1100714.21
Development Co. Ltd.Dongguan Guankang Yuhong Investment
501408938.92-13062060.07
Co. Ltd.Shenzhen Morsemi Semiconductor
Technology Co. Ltd.Shandong Econ Technology Co. Ltd. 1130575773.36
Dongguan Kangjia New Materials
6857694.772886.15
Technology Co. Ltd..Chongqing E2info Technology Co. Ltd. 1048983188.06 10939004.61
Yantai Kangyun Industrial Development
65884386.16-2727492.22
Co. Ltd.E3info (Hainan) Technology Co. Ltd. 30715678.97
Shenzhen Kangjia Jiapin Intelligent
7090590.47-480528.54
Electrical Apparatus Technology Co. Ltd.Shenzhen KONKA E-display Co. Ltd. 85057438.63 1799918.18
Chongqing Yuanlv Benpao Real Estate 28089915.82 -1351812.31
86Changes in the current period
Investee Opening balance Profit or loss of Changes in other
Increase in the Decrease in the Cost method to equity
investment recognised comprehensive
investment investment method
by the equity method income
Co. Ltd.Shenzhen Kangpeng Digital Technology
1770021.01-345320.82
Co. Ltd.Yantai Kangtang Construction
862394.0787749.85
Development Co. Ltd.Dongguan Konka Smart Electronic
24124143.70-3070775.78
Technology Co. Ltd.Shenzhen Aimijiakang Technology Co.
1173870.57-98033.64
Ltd.Beijing Konka Jingyuan Technology Co.
703703.42
Ltd.Chongqing Liangshan Enterprise
178368.539427.45
Management Co. Ltd.Shenzhen Kangxi Technology Innovation
1026306.076387.02
Development Co. Ltd.Shandong Kangfei Intelligent Electrical
245911.63
Appliances Co. Ltd.Henan Kangfei Intelligent Electric
1939694.34-18408.41
Appliance Co. Ltd.Guangdong Kangyuan Semiconductor Co.
9957207.04-1776663.77
Ltd.
87Changes in the current period
Investee Opening balance Profit or loss of Changes in other
Increase in the Decrease in the Cost method to equity
investment recognised comprehensive
investment investment method
by the equity method income
Chongqing Kangyiqing Technology Co.
633719.09-300000.00
Ltd.Zhejiang Kangying Semiconductor
Technology Co. Ltd. (formally: Shenzhen
19339655.22-1145348.00-84875.89
Kangying Semiconductor Technology Co.Ltd.)
KK Smartech Limited 1612150.56 -8552.93
Chongqing Kangjian Photoelectric
8329131.78-2160000.00
Technology Co. Ltd.Anhui Kangta Supply Chain
17256599.85-236863.48
Management Co. Ltd.Wuhan Kangtang Information Technology
25757222.60-848227.42
Co. Ltd.Sichuan Chengrui Real Estate Co. Ltd. 31708992.07 -3935564.36
Konka Industrial Development (Wuhan)
42134231.89-1425590.64
Co. Ltd.Hefei KONSEMI Storage Technology Co.
188654285.66-12222171.62956.66
Ltd.Xi'an Kang'an Intelligent Storage
6000000.00-183110.10
Technology Co. Ltd.Sichuan Hongxinchen Real Estate 53934595.60
88Changes in the current period
Investee Opening balance Profit or loss of Changes in other
Increase in the Decrease in the Cost method to equity
investment recognised comprehensive
investment investment method
by the equity method income
Development Co. Ltd.Konka Huanjia Environmental Technology
Co. Ltd.Total 5566483863.29 1768886.32 -36677989.39 -83919.23
(Continued)
Changes in the current period
Closing balance of
Investee Cash dividends or Closing balance the provision for
Changes in other Provision set aside
profits declared to Others impairment
equities for impairment
be distributed
Konka Ventures Development
55392.385058198.33
(Shenzhen) Co. Ltd.Nanjing Zhihuiguang Information
17358.622024140.14
Technology Research Institute Co. Ltd.Feidi Technology (Shenzhen) Co. Ltd. 13931062.79
Shenzhen Kangyue Enterprise Co. Ltd. 24977328.88
Foshan Zhujiang Media Creative Park
Cultural Development Co. Ltd.Kangkai Technology Service (Chengdu)
124693.79
Co. Ltd.Puchuang Jiakang Technology Co Ltd. 3178664.86
89Changes in the current period
Closing balance of
Investee Cash dividends or Closing balance the provision for
Changes in other Provision set aside
profits declared to Others impairment
equities for impairment
be distributed
Shenzhen Jielunte Technology Co. Ltd. 88575824.83
Panxu Intelligence Co. Ltd. 47532457.42
Orient Excellent (Zhuhai) Asset
8627870.81
Management Co. Ltd.Dongfang Jiakang No.1 (Zhuhai) Private
730916.13336496266.41
Equity Investment Fund (LP)
Tongxiang Wuzhen Kunyu Venture
3525977.19
Capital Investment Co. Ltd.Shenzhen RF-Llink Technology Co. Ltd. 85656027.35
Anhui Kaikai Shijie E-commerce Co.
412985769.02
Ltd.Kunshan Kangsheng Investment
7350000.00196647127.56
Development Co. Ltd.Shanxi Silk Road Cloud Intelligent Tech
4517987.58
Co. Ltd.Shenzhen Kanghongxing Intelligent
12660222.73
Technology Co. Ltd.Shenzhen Zhongkang Beidou
Technology Co. Ltd. (formerly named:
Shenzhen Zhongbing Konka Technology
Co. Ltd.)
90Changes in the current period
Closing balance of
Investee Cash dividends or Closing balance the provision for
Changes in other Provision set aside
profits declared to Others impairment
equities for impairment
be distributed
Shenzhen Yaode Technology Co. Ltd. 214559469.35
Wuhan Tianyuan Environmental
-11288034.0310465200.00508221790.15
Protection Co. Ltd.Chuzhou Konka Technology Industry
34697516.37
Development Co. Ltd.Chuzhou Kangjin Health Industrial
235567954.72
Development Co. Ltd.Nantong Kangjian Technology Industrial
Park Operations and Management Co. 107310029.86
Ltd.Chuzhou Kangxin Health Industry
179652095.58
Development Co. Ltd.Dongguan Guankang Yuhong Investment
488346878.85
Co. Ltd.Shenzhen Morsemi Semiconductor
Technology Co. Ltd.Shandong Econ Technology Co. Ltd. 1130575773.36 81806510.02
Dongguan Kangjia New Materials
6860580.92
Technology Co. Ltd.Chongqing E2info Technology Co. Ltd. 1059922192.67
91Changes in the current period
Closing balance of
Investee Cash dividends or Closing balance the provision for
Changes in other Provision set aside
profits declared to Others impairment
equities for impairment
be distributed
Yantai Kangyun Industrial Development
63156893.94
Co. Ltd.E3info (Hainan) Technology Co. Ltd. 4000000.00 26715678.97
Shenzhen Kangjia Jiapin Intelligent
Electrical Apparatus Technology Co. 6610061.93
Ltd.Shenzhen KONKA E-display Co. Ltd. 86857356.81
Chongqing Yuanlv Benpao Real Estate
26738103.51
Co. Ltd.Shenzhen Kangpeng Digital Technology
1424700.19
Co. Ltd.Yantai Kangtang Construction
950143.92
Development Co. Ltd.Dongguan Konka Smart Electronic
21053367.92
Technology Co. Ltd.Shenzhen Aimijiakang Technology Co.
1075836.93
Ltd.Beijing Konka Jingyuan Technology Co.
703703.42
Ltd.Chongqing Liangshan Enterprise
187795.98
Management Co. Ltd.
92Changes in the current period
Closing balance of
Investee Cash dividends or Closing balance the provision for
Changes in other Provision set aside
profits declared to Others impairment
equities for impairment
be distributed
Shenzhen Kangxi Technology Innovation
1032693.09
Development Co. Ltd.Shandong Kangfei Intelligent Electrical
245911.63245911.63
Appliances Co. Ltd.Henan Kangfei Intelligent Electric
1921285.93
Appliance Co. Ltd.Guangdong Kangyuan Semiconductor
8180543.27
Co. Ltd.Chongqing Kangyiqing Technology Co.
333719.09
Ltd.Zhejiang Kangying Semiconductor
Technology Co. Ltd. (formally:
18109431.33
Shenzhen Kangying Semiconductor
Technology Co. Ltd.)
KK Smartech Limited 1603597.63
Chongqing Kangjian Photoelectric
6169131.78
Technology Co. Ltd.Anhui Kangta Supply Chain
17019736.37
Management Co. Ltd.Wuhan Kangtang Information
24908995.18
Technology Co. Ltd.Sichuan Chengrui Real Estate Co. Ltd. 27773427.71
93Changes in the current period
Closing balance of
Investee Cash dividends or Closing balance the provision for
Changes in other Provision set aside
profits declared to Others impairment
equities for impairment
be distributed
Konka Industrial Development (Wuhan)
40708641.25
Co. Ltd.Hefei KONSEMI Storage Technology
6498827.39182931898.09
Co. Ltd.Xi'an Kang'an Intelligent Storage
5816889.90
Technology Co. Ltd.Sichuan Hongxinchen Real Estate
53934595.60
Development Co. Ltd.Konka Huanjia Environmental
91800000.00
Technology Co. Ltd.Total -4789206.64 22618867.13 245911.63 5500299082.95 511705469.96
9412. Other equity instrument investments
12.1 Other equity instrument investments
Item Closing balance Opening balance
Shenzhen Tianyilian Science & Technology Co.Ltd.Beijing Huyu Digital Technology Co. Ltd. 5901121.80 5901121.80
Feihong Electronics Co. Ltd.ZAEFI
Shenzhen Chuangce Investment Development
Co. Ltd.Shanlian Information Technology Engineering
1860809.201860809.20
Centre
Shenzhen CIU Science & Technology Co. Ltd. 953000.00 953000.00
Shenzhen Digital TV National Engineering
7726405.167726405.16
Laboratory Co. Ltd.Shanghai National Engineering Research Centre
2400000.002400000.00
of Digital TV Co. Ltd.BOHUA UHD 5000001.00 5000001.00
Total 23841337.16 23841337.16
9512.2 Investments in non-trading equity instruments in the current period
Dividend
Amount of other Reason for assigning to Reason for other
income
Accumulative Accumulative comprehensive measure in fair value of comprehensive
Item recognised in
gains losses income transferred to which changes included income transferred
the current
retained earnings other comprehensive income to retained earnings
period
Shenzhen Tianyilian Science & Technology Co. Long-term holding based on
4800000.00
Ltd. strategic purpose
Long-term holding based on
Beijing Huyu Digital Technology Co. Ltd. 98878.20
strategic purpose
Long-term holding based on
Feihong Electronics Co. Ltd. 1300000.00
strategic purpose
Long-term holding based on
ZAEFI 100000.00
strategic purpose
Shenzhen Chuangce Investment Development Co. Long-term holding based on
485000.00
Ltd. strategic purpose
Shanlian Information Technology Engineering Long-term holding based on
3139190.80
Centre strategic purpose
Long-term holding based on
Shenzhen CIU Science & Technology Co. Ltd. 200000.00
strategic purpose
Shenzhen Digital TV National Engineering Long-term holding based on
1273594.84
Laboratory Co. Ltd. strategic purpose
Shanghai National Engineering Research Centre of Long-term holding based on
Digital TV Co. Ltd. strategic purpose
BOHUA UHD Long-term holding based on
96Dividend
Amount of other Reason for assigning to Reason for other
income
Accumulative Accumulative comprehensive measure in fair value of comprehensive
Item recognised in
gains losses income transferred to which changes included income transferred
the current
retained earnings other comprehensive income to retained earnings
period
strategic purpose
Total 11396663.84
9713. Other non-current financial assets
Item Closing balance Opening balance
China Asset Management-Jiayi Overseas Designated Plan 200732067.00 200732067.00
Tianjin Huacheng Property Development Co. Ltd. 1000000.00 1000000.00
Tianjin Property No. 8 Enterprise Management Partnership (Limited Partnership) 28540777.26 28540777.26
CCB Trust-Cai Die No. 6 Property Rights Trust Scheme 66080293.70 66080293.70
Daye Trust Co. Ltd. 100000000.00 100000000.00
Yibin OCT Sanjiang Properties Co. Ltd. 199774696.09 199774696.09
Kunshan Xinjia Emerging Industry Equity Investment Fund Partnership (Limited Partnership) 230264035.04 231190200.00
Tongxiang Wuzhen Jiayu Digital Economy Industry Equity Investment Partnership (Limited Partnership) 198129473.88 201451000.00
Yibin Kanghui Electronic Information Industry Equity Investment Partnership (Limited Partnership) 60292296.39 60292000.00
Chuzhou Jiachen Information Technology Consulting Service Partnership (Limited Partnership) 59700013.59 59700013.59
Yancheng Kangyan Information Industry Investment Partnership (Limited Partnership) 140082317.80 162937428.56
Chongqing Kangxin Equity Investment Fund Limited Partnership (Limited Partnership) 155692673.16 155691200.00
Shenzhen Kanghuijia Technology Co. Ltd. 7684.53 7684.53
Subtotal of equity investments 1440296328.44 1467397360.73
Ningbo Yuanqing No. 9 Investment Partnership 148855198.11 148855198.11
98Item Closing balance Opening balance
Shenzhen Beihu Technology Partnership (Limited Partnership) 59735232.88 59735232.88
Shanxi Kangmengrong Enterprise Management Consulting Partnership (Limited Partnership) 8520728.55 9163411.30
Nanjing Kangfeng Dejia Asset Management Partnership (Limited Partnership) 100000000.00 100000000.00
Shenzhen Gaohong Enterprise Consulting Management Partnership (Limited Partnership) 114815791.63 109739999.99
Shenzhen Zitang No.1 Enterprise Consulting Management Partnership (Limited Partnership) 99000000.00 99000000.00
Xi'an Bihuijia Enterprise Management Consulting Partnership (Limited Partnership) 14685194.12 15785194.99
Subtotal of debt investments 545612145.29 542279037.27
Total 1985908473.73 2009676398.00
14. Investment property
（1） Investment properties measured at cost
Item Land use right Properties and buildings Total
I. Original carrying value
1. Opening balance 91837689.30 1558110727.67 1649948416.97
2. Increase in the current period 10542998.55 62056444.27 72599442.82
(1) External purchase
(2) Fixed assets\construction in progress\transfer of
10542998.5562056444.2772599442.82
intangible assets
99Item Land use right Properties and buildings Total
3. Decrease in the current period
(1) Disposal
(2) Other transfer out
4. Closing balance 102380687.85 1620167171.94 1722547859.79
II. The accumulative depreciation and accumulative
amortisation
1. Opening balance 21541632.80 158180060.30 179721693.10
2. Increase in the current period 1366075.68 24522087.58 25888163.26
(1) Provision or amortisation 1366075.68 24522087.58 25888163.26
3. Decrease in the current period
(1) Disposal
(2) Other transfer out
4. Closing balance 22907708.48 182702147.88 205609856.36
III. Provision for impairment
1. Opening balance
2. Increase in the current period
(1) Provision
3. Decrease in the current period
1 00Item Land use right Properties and buildings Total
(1) Disposal
(2) Other transfer out
4. Closing balance
IV. Carrying value
1. Closing carrying value 79472979.37 1437465024.06 1516938003.43
2. Opening carrying value 70296056.50 1399930667.37 1470226723.87
（2） Impairment test of investment properties measured at cost
No provision for impairment of investment properties was made during the Reporting Period.
（3） Investment properties measured at fair value
There were no investment properties measured at fair value of the Group.
（4） Investment properties in the process of title certificate handling
Item Carrying value Reason that the certificate of title was not completed
In the process of project closure project closure will not
Konka Standard Electronic Product Plants Project in Suining 375714645.70
be processed until the project is completed.Total 375714645.70
（5） Investment properties with restricted ownership or use rights
Item Closing carrying value Reasons for the restriction
1 01Item Closing carrying value Reasons for the restriction
Konka Guangming Technology Centre 572516043.72 Mortgage loan
Houses and buildings of Shaanxi Konka 70800534.86 Mortgage loan
Total 643316578.58
15. Fixed assets
Item Closing carrying value Opening carrying value
Fixed assets 5017976577.28 5218297745.16
Liquidation of fixed assets 32448750.14
Total 5050425327.42 5218297745.16
15.1 Fixed Assets
（1） Fixed assets
Properties and Machinery and Transport
Item Electronic equipment Other equipment Total
buildings equipment equipment
I. Original carrying value
1. Opening balance 4064218816.99 3320880784.80 302188512.88 55935781.31 189243639.88 7932467535.86
2. Increased amount of the
3197639.4792432260.802212968.25385233.451303855.1799531957.14
period
(1) Purchase 3197639.47 14508655.11 2114251.41 385233.45 1303855.17 21509634.61
1 02Properties and Machinery and Transport
Item Electronic equipment Other equipment Total
buildings equipment equipment
(2) Transfer-in of
77710101.2717787.6177727888.88
construction in progress
(3) Increase through
consolidation
(4) Other transfer-in 213504.42 80929.23 294433.65
3. Decreased amount of the
112806344.2012878085.535765117.331359998.05886178.86133695723.97
period
(1) Disposal or write-off 51084326.98 11934642.83 5250024.44 1359998.05 819642.86 70448635.16
(2) Decrease for loss of
302363.06515092.892876.10820332.05
controlling right
(3) Other decreases 61722017.22 641079.64 63659.90 62426756.76
4. Ending balance 3954610112.26 3400434960.07 298636363.80 54961016.71 189661316.19 7898303769.03
II. Accumulated depreciation
1. Opening balance 740844429.80 1465754243.66 200150283.49 42094186.82 125133960.40 2573977104.17
2. Increased amount of the
57920184.65124779559.0114586543.162151073.917201870.28206639231.01
period
(1) Provision 57101166.26 124779559.01 12656846.89 2151073.91 7201870.28 203890516.35
(2) Increase through
consolidation
1 03Properties and Machinery and Transport
Item Electronic equipment Other equipment Total
buildings equipment equipment
(3) Other increase 819018.39 1929696.27 2748714.66
3. Decreased amount of the
31229339.5110409963.773415649.871032253.062758219.4548845425.66
period
(1) Disposal or write-off 60727.49 9543422.23 2954073.36 1032253.06 705912.00 14296388.14
(2) Decrease for loss of
167718.41461576.512588.49631883.41
controlling right
(3) Other decreases 31168612.02 698823.13 2049718.96 33917154.11
4. Ending balance 767535274.94 1580123838.90 211321176.78 43213007.67 129577611.23 2731770909.52
III. Provision for impairment
1. Opening balance 23987527.51 107259898.81 2789800.42 841445.29 5314014.50 140192686.53
2. Increased amount of the
10646284.0810646284.08
period
(1) Provision 10646284.08 10646284.08
3. Decreased amount of the
357047.031919104.946536.412282688.38
period
(1) Disposal or write-off 222402.39 1898966.13 6536.41 2127904.93
(2) Other decrease 134644.64 20138.81 154783.45
4. Ending balance 23987527.51 117549135.86 870695.48 841445.29 5307478.09 148556282.23
1 04Properties and Machinery and Transport
Item Electronic equipment Other equipment Total
buildings equipment equipment
IV. Carrying value
1. Ending carrying value 3163087309.81 1702761985.31 86444491.54 10906563.75 54776226.87 5017976577.28
2. Opening carrying value 3299386859.68 1747866642.33 99248428.97 13000149.20 58795664.98 5218297745.16
1 05（2） List of temporarily idle fixed assets
Original carrying Accumulated Provision for
Item Carrying value
value depreciation impairment
Machinery and
814906750.09434472592.8187220284.81293213872.47
equipment
Electronic
10569556.509252851.88111084.511205620.11
equipment
Transport
3887229.493639105.6220675.15227448.72
equipment
Properties and
264495526.66146277917.117899900.07110317709.48
buildings
Other equipment 1313806.25 741647.49 259629.18 312529.58
Total 1095172868.99 594384114.91 95511573.72 405277180.36
（3） Fixed assets leased out through operating leases
Item Closing carrying value
Electronic equipment 250227.89
Machinery and equipment 15146352.83
Other equipment 264878.88
Transport equipment 13555.68
Total 15675015.28
（4） Details of fixed assets failed to accomplish certification of property
Reason
that the
Provision
Original carrying Accumulated certificate
Item for Net book value
value depreciation of title was
impairment
not
completed
Being
Ankang's plants 603628412.83 39879186.98 563749225.85
handled
Housing and buildings Being
453857134.2714198661.09439658473.18
of Chongqing Konka handled
Fenggang Konka
Smart Colour TV Being
425011644.828765865.17416245779.65
Project (Section I) handled
Property
Frestec Smart Home
Being
properties and 406680006.86 6075992.68 400604014.18
handled
buildings
Yikang Building 76610752.33 42937872.94 33672879.39 Being
1 06Reason
that the
Provision
Original carrying Accumulated certificate
Item for Net book value
value depreciation of title was
impairment
not
completed
property handled
Boluo Printing Plate Being
52579211.931670318.3050908893.63
Phase III Plant handled
Jingyuan Building Being
7700000.004331237.473368762.53
property handled
Standard electronic
Being
product plants in 1544085.19 87005.85 1457079.34
handled
Suining
Total 2027611248.23 117946140.48 1909665107.75
1 07（5） Impairment test of fixed assets
During the Reporting Period the Company conducted impairment tests on the fixed assets of Henan Frestec Refrigeration Appliance Co. Ltd. determined their
recoverable amounts based on the net fair value less disposal costs and recognised an impairment loss on assets of RMB10646284.08.Recoverable Impairment Determination of fair value Key
Item Carrying value Basis for determining key parameters
amount amount and disposal costs parameters
1. The scope of asset group: abandoned
1. The fair value is determined and idle equipment such as baler
on the quotation of second-hand 1. Scope of foaming machine multi-station vacuum
Machinery equipment of
13043951.93 2397667.85 10646284.08 equipment suppliers; 2. The asset group; 2. forming machine of container and
Frestec Refrigeration
disposal costs are included in the Fair value; gallbladder; 2. The fair value is
quotation and are not considered. determined on the quotation of
second-hand equipment suppliers.Total 13043951.93 2397667.85 10646284.08 — — —
1 08（6） Fixed Assets with Restricted Ownership or Use Right
Item Closing carrying value Reasons for the restriction
Anhui Konka's buildings 594158945.16 Mortgage loan
Housing and buildings of Chongqing
333838258.53 Mortgage loan
Konka
Properties and buildings of Shanxi
257597123.66 Mortgage loan
Konka Intelligent
Housing and buildings of Anhui
137747881.71 Mortgage loan
Tongchuang
Housing and buildings of Frestec
79482863.26 As collateral for finance lease
Refrigeration
Machinery equipment of XingDa
62102622.44 As collateral for finance lease
HongYe
Buildings of Konka Group 61612474.97 Mortgage loan
Housing and buildings of Jiangsu
34142638.01 Mortgage loan
Konka Intelligent
Housing and buildings of XingDa
29164839.65 Mortgage loan
HongYe
Machinery equipment of Xinfeng
7677954.68 As collateral for finance lease
Microcrystalline
Housing and buildings of Jiangxi Original shareholder guarantee
2279341.79
Konka mortgage
Total 1599804943.86
（7） Disposal of Fixed Assets
Item Closing carrying value Opening carrying value
Frestec Refrigeration Project 32448750.14
Total 32448750.14
1 0916. Construction in progress
（1） Construction in progress
Closing balance Opening balance
Item
Provision for Provision for
Book balance Carrying value Book balance Carrying value
impairment impairment
Jiangxi High-permeability Crystalisation
246576748.5746755148.57199821600.00246576748.5746755148.57199821600.00
Kiln
Dongguan Konka New Industrial Park 12820621.35 12820621.35
Construction of Suining Electronic
177627683.33177627683.33177516258.23177516258.23
Industrial Park Workshops
Suining Konka Hongye Plant Decoration
84574481.8084574481.8076141438.8676141438.86
Project
Dishwasher Project of Jiangxi Konka 55685802.09 55685802.09
Production Line Renovation Project of
85354578.7812415331.1572939247.6385861185.3612518073.8473343111.52
Jiangxi Konka
Other projects 330003779.69 32822800.38 297180979.31 321142187.11 42750899.13 278391287.98
Total 936957893.52 91993280.10 844964613.42 962923620.22 102024121.54 860899498.68
（2） Changes in major projects under construction in the current period
Name of item Opening balance Increase in the current Decrease in the current period Closing balance
1 10period Transferred to long-term
Other decreases
assets
Jiangxi High-permeability Crystalisation
246576748.57246576748.57
Kiln
Construction of Suining Electronic Industrial
177516258.23111425.10177627683.33
Park Workshops
Dishwasher Project of Shaanxi Konka 55685802.09 55685802.09
Total 479778808.89 111425.10 55685802.09 424204431.90
(Continued)
Proportion Of which: the Capitalisation
Estimated
estimated of Engineering Accumulated amount amount of the rate of the
number
Name of item the project Schedule of interest capitalised interests in the Source of fund
(RMB100
accumulative (%) capitalisation interests in the current period
million)
input (%) current period (%)
Jiangxi High-permeability Crystalisation
3.40 72.52 72.52 32249994.16 Bank loans
Kiln
Construction of Suining Electronic Industrial
7.34 95.00 95.00 Self-owned fund
Park Workshops
Dishwasher Project of Shaanxi Konka 0.56 98.86 98.86 Self-owned fund
Total 11.30 32249994.16
（3） Provision set aside for impairment of construction in progress in the current period
Decrease in the current
Category Opening balance Increase in the current period Closing balance Reason for withdrawal
period
Jiangxi High-permeability
46755148.5746755148.57
Crystalisation Kiln
1 11Decrease in the current
Category Opening balance Increase in the current period Closing balance Reason for withdrawal
period
Jiangxi High Transparent Failure to achieve
36181822.636224551.3329957271.30
Nano Line 1 Project serviceable conditions
Henan Civil Construction Decrease for losing
3703547.423703547.42
Project control power
Failure to achieve
Other projects 15383602.92 102742.69 15280860.23
serviceable conditions
Total 102024121.54 10030841.44 91993280.10 —
（4） Impairment test of construction in progress
There was no provision for impairment of construction in progress during the Reporting Period.
1 1217. Right-of-use assets
（1） List of right-of-use assets
Electronic Transport
Item Properties and buildings Total
equipment equipment
I. Original carrying
value
1. Opening balance 278099315.84 279350.52 278378666.36
2. Increase in the
33384402.1133384402.11
current period
(1) Rent 33384402.11 33384402.11
(2) Others
3. Decrease in the
32622122.7332622122.73
current period
(1) Decrease for
loss of controlling
right
(2) Others 32622122.73 32622122.73
4. Closing balance 278861595.22 279350.52 279140945.74
II. Accumulated
depreciation
1. Opening balance 81209388.74 114854.45 81324243.19
2. Increase in the
27978636.3731804.7528010441.12
current period
(1) Provision 27978636.37 31804.75 28010441.12
(2) Others
3. Decrease in the
29940601.1029940601.10
current period
(1) Decrease for
loss of controlling
right
(2) Others 29940601.10 29940601.10
4. Closing balance 79247424.01 146659.20 79394083.21
III. Provision for
impairment
1. Opening balance
2. Increase in the
current period
1 13Electronic Transport
Item Properties and buildings Total
equipment equipment
(1) Provision
3. Decrease in the
current period
(1) Disposal
4. Closing balance
IV. Carrying value
1. Closing carrying
199614171.21132691.32199746862.53
value
2. Opening
196889927.10164496.07197054423.17
carrying value
Note: Other decreases in original value and accumulated depreciation are mainly due to lease
expiration.
1 1418. Intangible assets
（1） List of intangible assets
Intellectual property
Item Land use right Right to use Total
Patent and
Trademark right Franchise rights software and Subtotal
know-how
others
I. Original carrying
value
1. Opening balance 886356061.91 72197456.33 116697625.44 187333182.47 177648647.63 553876911.87 1440232973.78
2. Increased amount of
927169.673620554.104547723.774547723.77
the period
(1) Purchase 2404874.68 2404874.68 2404874.68
(2) Transfer-in of
927169.671215679.422142849.092142849.09
construction in progress
(3) Other reasons
3. Decreased amount of
24316563.5521116714.3421116714.3445433277.89
the period
(1) Disposal 13773565.00 21116714.34 21116714.34 34890279.34
(2) Decrease for loss of
controlling right
(3) Decrease for other 10542998.55 10542998.55
1 15reasons
4. Ending balance 862039498.36 72197456.33 116697625.44 188260352.14 160152487.39 537307921.30 1399347419.66
II. Accumulated
amortisation
1. Opening balance 96724173.74 23415626.44 71699652.31 11721315.62 103542668.71 210379263.08 307103436.82
2. Increased amount of
9722325.732081757.9854451.515224211.878802235.8116162657.1725884982.90
the period
(1) Provision 9722325.73 2081757.98 54451.51 5224211.87 8802235.81 16162657.17 25884982.90
(2) Other increases
3. Decreased amount of
2746215.0721116714.3321116714.3323862929.40
the period
(1) Disposal 2610583.98 21116714.33 21116714.33 23727298.31
(2) Decrease for loss of
controlling right
(3) Decrease for other
135631.09135631.09
reasons
4. Ending balance 103700284.40 25497384.42 71754103.82 16945527.49 91228190.19 205425205.92 309125490.32
III. Provision for
impairment
1. Opening balance 564705.88 44943521.62 235294.12 45743521.62 45743521.62
2. Increased amount of
the period
1 16(1) Provision
(2) Increase in business
combinations
3. Decreased amount of
the period
(1) Disposal
(2) Decrease for loss of
controlling right
4. Ending balance 564705.88 44943521.62 235294.12 45743521.62 45743521.62
IV. Carrying value
1. Ending carrying
758339213.9646135366.03171314824.6568689003.08286139193.761044478407.72
value
2. Opening carrying
789631888.1748217124.0154451.51175611866.8573870684.80297754127.171087386015.34
value
Note: There was no impairment of the Group's intangible assets during the Reporting Period.
1 17（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 amortisation period
Item Closing carrying value
(year)
Land use right of Dongguan Konka 183797800.67 45.17
Concessions of Yibin Konka 171314824.65 16.33
Land use right of Frestec Smart Home
89302521.5146.25
Technology
Land usage right of Frestec Refrigeration 62865741.86 32.25
Total 507280888.69
（4） Intangible assets with restricted ownership or using right
Item Closing carrying value Reasons for the restriction
Land use right of Dongguan Konka 183797800.67 Mortgage loan
Land use right of Shanxi Konka Intelligent 109812076.81 Mortgage loan
Land use right of Frestec Smart Home
89302521.51 Mortgage loan
Technology
Land usage right of Frestec Refrigeration 62865741.86 As collateral for finance lease
Land use right of Anhui Konka 53273636.00 Mortgage loan
Land use right of Chongqing Konka 44097359.88 Mortgage loan
Land use right of Anhui Tongchuang 17210885.31 Mortgage loan
Land use right of Jiangsu Konka 13511463.83 Mortgage loan
Land use right of XingDa HongYe 12878528.02 Mortgage loan
Original shareholder guarantee
Land use right of Jiangxi Konka 11936997.05
mortgage
Land use right of Konka Guangming 4224230.38 Mortgage loan
Total 602911241.32
19. Goodwill
（1） Original carrying value of goodwill
Increase in the current Decrease in the
Investee Opening balance Closing balance
period current period
1 18Formed through
business Others Disposal Others
combinations
Jiangxi Konka 340111933.01 340111933.01
XingDa
44156682.2544156682.25
HongYe
Total 384268615.26 384268615.26
（2） Provision for goodwill impairment
Increase in the current Decrease in the
period current period
Investee Opening balance Closing balance
Other Othe
Provision Disposal
s rs
Jiangxi Konka 340111933.01 340111933.01
XingDa
21959947.1421959947.14
HongYe
Total 362071880.15 362071880.15
20. Long-term deferred expenses
Other
Amortisation in
Increase in the decreases in
Item Opening balance the current Closing balance
current period the current
period
period
Decoration
370388936.888587369.8735331884.4210930839.71332713582.62
expenses
Shoppe
24974475.3816321473.6711660670.441664114.9827971163.63
expense
Others 123555811.45 35612984.68 21836551.80 7880195.32 129452049.01
Total 518919223.71 60521828.22 68829106.66 20475150.01 490136795.26
21. Deferred Income Tax Assets/Deferred Income Tax Liabilities
（1） Deferred tax assets that have not been offset
Closing balance Opening balance
Item Deductible Deferred tax Deductible Deferred tax
temporary temporary
differences Assets differences Assets
Deductible
3833414709.20811599214.913747584829.70794363411.92
losses
Provision for
asset 1829025527.80 401304876.17 1879389407.11 407751765.55
impairment
1 19Closing balance Opening balance
Item Deductible Deferred tax Deductible Deferred tax
temporary temporary
differences Assets differences Assets
Deferred
167074039.3936955793.78167691056.3336766230.50
revenue
Accrued
313175362.0266365728.23262522401.0758732850.29
expenses
Unrealised
internal sales 55997896.96 11745908.12 55653196.64 13913299.16
profits
Lease liabilities 201197429.82 50004006.85 207847769.62 50208319.90
Others 260960747.01 61612266.63 279982155.72 64838104.84
Total 6660845712.20 1439587794.69 6600670816.19 1426573982.16
（2） Deferred tax liabilities that have not been offset
Closing balance Opening balance
Item
Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Estimated
added value of
167391570.3935716343.31154693540.8237285533.12
assets not under
the same control
Prepaid interest 37541390.08 9385347.52 37541390.08 9385347.52
Accelerated
depreciation of 44154571.98 6785641.35 3005493.04 608518.82
fixed assets
Financial assets
at fair value
148002025.3637000506.34327802549.1281950637.29
through profit
or loss
Right-of-use
192106186.7248026546.70195220008.9948074535.52
assets
Others 9249308.72 2312327.18 47153970.40 7721593.00
Total 598445053.25 139226712.40 765416952.45 185026165.27
（3） Breakdown of unrecognised deferred tax assets
Item Closing balance Opening balance
Deductible losses 4607675003.87 3693212186.74
Deductible temporary differences 3928816549.12 4173904666.60
1 20Item Closing balance Opening balance
Total 8536491552.99 7867116853.34
（4） Deductible losses of unrecognised deferred tax assets matured/will mature in the
following year
Year Closing balance Opening balance Notes
2024121029752.50175414641.28
2025435923297.45464500932.68
2026209031391.65224104387.87
202794666236.63110289035.04
2028740529446.352718903189.87
2029 and following years 3006494879.29
Total 4607675003.87 3693212186.74 —
22. Other non-current assets
Closing balance
Item
Provision for
Book balance Carrying value
impairment
Prepayment for land-purchase 1029457502.92 1029457502.92
Prepayment for construction equipment
266687168.69266687168.69
and other long-term assets
Total 1296144671.61 1296144671.61
(Continued)
Opening balance
Item
Provision for
Book balance Carrying 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 period
Item
Type of
Book balance Carrying value Restriction details
restriction
Among them
Monetary 1135996069.35 1135996069.35
Margins RMB439611924.45 is margin
pledges time deposit pledged for
1 21End of the period
Item
Type of
Book balance Carrying value Restriction details
restriction
assets deposits borrowings or issuing bank
acceptance; RMB664.24 is
financial supervisory account
funds; RMB469680000.00 is
time deposit that cannot be
withdrawn in advance;
RMB226703480.66 is
restricted due to other reasons.Accounts
1082099.02 1059896.50 Pledge Pledge loan
receivable
Notes
135131288.11 135131288.11 Pledge Pledged to issue bills
receivable
Inventory 477577793.08 477577793.08 Mortgage Mortgage loan
Investment
706736950.42 643316578.58 Mortgage Mortgage loan
property
Mortgage for finance lease
mortgage loan mortgage
Fixed assets 1937212292.51 1599804943.86 Mortgage
guaranteed by the original
shareholder
Mortgage for finance lease
Intangible mortgage loan mortgage
627235336.77 602911241.32 Mortgage
assets guaranteed by the original
shareholder
Construction
46810437.16 46810437.16 Mortgage Mortgage loan
in progress
Total 5067782266.42 4642608247.96 — —
(Continued)
Beginning of the period
Item
Type of
Book balance Carrying value Restriction details
restriction
Among them
RMB384011696.60 is margin
deposit pledged for borrowings
Margins or issuing bank acceptance
Monetary
831575227.47 831575227.47 p ledges time RMB226611500.00 is time
assets
deposits deposit that cannot be
withdrawn in advance;
RMB220952030.87 is
restricted due to other reasons.Accounts
2527314.22 2474071.67 Pledge Pledge loan
receivable
Notes They are pledged for the
209288446.67 209288446.67 Pledge
receivable issuance of bank acceptance
1 22Beginning of the period
Item
Type of
Book balance Carrying value Restriction details
restriction
Carrying value of inventories
seized as a result of the
minority shareholder case of a
subsidiary was
Seizure
Inventory 601395411.05 599475045.44 RMB49679547.48 and the
mortgage
Company did not waive claims;
year-end book value of
inventory used for mortgage
loans was RMB549795497.96.Investment
634578011.63 585984804.04 Mortgage Mortgage loan
property
Mortgage for finance lease
mortgage loan mortgage
Fixed assets 2003558346.93 1689602310.18 Mortgage
guaranteed by the original
shareholder
Mortgage for finance lease
Intangible mortgage loan mortgage
687667571.97 620594057.60 Mortgage
assets guaranteed by the original
shareholder
Construction
40629663.23 40629663.23 Mortgage Mortgage loan
in progress
Total 5011219993.17 4579623626.30 — —
24. Short-term loans
（1） Classification of short-term loans
Type of borrowings Closing balance Opening balance Notes
Unsecured loan 5487754338.21 4741431032.21
Guaranteed loan 660533547.75 1374378896.71 * * *
Mortgage loan 361799744.99 274782127.35 * * * * *
Total 6510087630.95 6390592056.27
* The Company has provided a joint and several guarantee for the short-term borrowings totaling
RMB199942853.31 taken out by its subsidiaries Anhui Konka Yibin Smart Boluo Precision
Jiangxi Konka Jiangxi Konka and Konka Xinyun Semiconductor.* The Company has obtained short-term borrowings amounting to RMB410418472.21 from
Shenzhen Chegongmiao Sub-branch of China Everbright Bank Co. Ltd. and the Company's
subsidiaries Suining Konka Industrial Park and Konka Circuit have each provided a joint and
several guarantee for debts continuously incurred in a specific period and capped at a specific
amount being liable for 80% and 20% of such debts respectively.
1 23* The Company's subsidiary Ningbo Khr Electric Appliance has obtained short-term borrowings
amounting to RMB50172222.23 from Cixi Guancheng Sub-branch of Bank of China Limited
for which the Company and KEG Group Co. Ltd. have each provided a joint and several
guarantee at the ratio of 3:2.* By mortgaging properties and buildings with a carrying value of RMB409974007.80 and land
use rights with a carrying value of RMB35467241.33 the Company's subsidiary Anhui Konka
has obtained short-term borrowings amounting to RMB141791828.32 from Chuzhou Branch of
Bank of China Limited.* By mortgaging land use rights with a carrying value of RMB89302521.51 the Company's
subsidiary Frestec Smart Home has obtained short-term borrowings amounting to
RMB52056333.33 from Xinxiang Branch of Industrial Bank Co. Ltd. and the Company and
Meng Honggang the legal representative of Chuzhou Hanshang Electrical Appliances Co. Ltd.have each provided a joint and several guarantee for debts continuously incurred in a specific
period and capped at a specific amount being liable for 51% and 49% of such debts respectively.* By mortgaging properties and buildings with a carrying value of RMB29164839.65 and land
use rights with a carrying value of RMB12878528.02 and pledging a certificate of deposit in the
amount of RMB19800000.00 with a joint and several guarantee provided by Hu Zehong the
Company's subsidiary XingDa HongYe has obtained short-term borrowings amounting to
RMB94090083.34 from Fusha Sub-branch of Zhongshan Rural Commercial Bank Co. Ltd.* By mortgaging properties and buildings with a carrying value of RMB34142638.01 and land
use rights with a carrying value of RMB13511463.83 the Company's subsidiary Jiangsu Konka
Smart has obtained short-term borrowings amounting to RMB30033750.00 from Changzhou
Branch of China Zheshang Bank Co. Ltd.* By mortgaging properties and buildings with a carrying value of RMB137747881.71 and land
use rights with a carrying value of RMB17210885.31 the Company's subsidiary Anhui
Tongchuang has obtained short-term borrowings amounting to RMB43827750.00 from Hefei
Branch of China Zheshang Bank Co. Ltd.
（2） Outstanding Short-term borrowings overdue
There were no outstanding short-term borrowings overdue at the end of the current period.
25. Notes payable
Type of note Closing balance Opening balance
Banker's acceptance 775950422.77 786833882.36
Commercial acceptance draft 205977959.18 203649044.84
Total 981928381.95 990482927.20
1 2426. Accounts payable
Item Closing balance Opening balance
Within one year 2320012296.29 2002263324.19
One to two years 390501476.73 448060250.16
Two to three years 75821318.63 107371417.74
Over three years 154216669.07 169136683.88
Total 2940551760.72 2726831675.97
27. Accounts received in advance
Type of note Closing balance Opening balance
Rents 311664.91
Total 311664.91
28. Contract liabilities
（1） Contract liabilities
Item Closing balance Opening balance
Sales advances received 326016727.91 527975160.12
Total 326016727.91 527975160.12
Note: Contractual liabilities over one year are detailed in "VI.41. Other non-current
liabilities" in this note.
（2） Significant contract liabilities with an age of more than one year
There were no significant contract liabilities with an age of more than one year in the
Reporting Period.
（3） Significant changes in carrying value in the current period
There were no significant changes in carrying value in the current period.
29. Payroll payable
（1） List of payrolls payable
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Short-term
302906283.43663359406.44770236182.60196029507.27
remuneration
Post-employment
benefits-defined 984500.20 51532957.08 51538306.83 979150.45
contribution plans
1 25Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Dismissal benefits 842320.00 8099251.50 7462264.74 1479306.76
Other benefits due
within one year
Total 304733103.63 722991615.02 829236754.17 198487964.48
（2） Short-term remuneration
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Salaries bonuses
allowances and 292819254.32 584485214.41 693448301.36 183856167.37
subsidies
Employee benefits 5354332.27 31342888.00 29128609.38 7568610.89
Social insurance
564961.7522518004.2722491339.94591626.08
premiums
Including: Medical
396722.2120007041.0719958059.73445703.55
insurance premiums
Work injury
77112.941644853.261605135.75116830.45
insurance premiums
Maternity
91126.60866109.94928144.4629092.08
insurance premiums
Housing fund 486011.97 19532752.22 19688006.12 330758.07
Labour union funds
3681723.125480547.545479925.803682344.86
and education funds
Short-term absence
with payment
Short-term profit
sharing plan
Others
Total 302906283.43 663359406.44 770236182.60 196029507.27
（3） Defined contribution plans
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Basic endowment
management 835465.17 49330295.67 49333661.41 832099.43
insurance
Unemployment
149035.032202661.412204645.42147051.02
insurance premiums
1 26Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Annuity contribution
Total 984500.20 51532957.08 51538306.83 979150.45
30. Taxes payable
Item Closing balance Opening balance
Value-added tax 15634896.66 66607505.30
Property tax 12276323.34 5219025.56
Stamp duty 7282071.55 6782263.86
Corporate income tax 6262028.72 91733192.66
Land use tax 3597483.22 11704493.10
Personal income tax 2197631.55 2285063.65
Tariff 1678500.01 1513377.11
City construction and maintenance tax 572922.63 3479642.26
Education fees and local education
434273.382525463.27
Surcharge
Fund for disposing abandoned appliances
21210465.50
and electronic products
Others 1629201.77 1356643.60
Total 51565332.83 214417135.87
31. Other payables
Item Closing balance Opening balance
Interest payable
Other payables 1762366179.22 1922791905.14
Total 1762366179.22 1922791905.14
31.1 Interests payable
Item Closing balance Opening balance
Interest on corporate bonds
Interest on long-term borrowings with
interest paid by installment and principal
paid at maturity
Interest payable on short-term borrowings
Total
1 2731.2 Other Payables
（1） Other accounts payable presented based on the fund nature
Nature of fund Closing balance Opening balance
Trading funds 666170006.98 798553216.65
Expenses payable 463347998.31 521810773.58
Related party borrowing 216849686.69 236064633.74
Cash deposit and front 291952029.84 282035338.52
Advance payment 6202442.99 5480880.33
Equity payable 24302796.96 24302796.96
Others 93541217.45 54544265.36
Total 1762366179.22 1922791905.14
（2） Significant other accounts payable with an age of more than one year or overdue
Reason for non-repayment or
Unit Closing balance
carry-over
The Third Construction Engineering
It was not yet due for payment as
Company Ltd. of China Construction 21535346.08
per the contract
Second Engineering Bureau
Total 21535346.08
32. Non-current liabilities due within one year
Item Closing balance Opening balance
Long-term borrowings due within one
2718841649.662891407222.55
year
Long-term payables due within one year 140336.20 141650.44
Bonds payable due within one year 830985555.48 2370572421.45
Lease liabilities due within one year 50971866.23 52026101.92
Total 3600939407.57 5314147396.36
33. Other current liabilities
Item Closing balance Opening balance
Accounts payable paid by endorsement
of outstanding notes at the end of the 13712030.20 11524075.93
Reporting Period
Tax to be charged off 17159993.79 23890662.41
1 28Item Closing balance Opening balance
Refunds payable 15404439.30 18915977.41
Total 46276463.29 54330715.75
34. Long-term loans
Type of borrowings Closing balance Opening balance Notes
Guaranteed loan 3652266829.86 4047706381.39 * * * * * * * * *
Mortgage loan 1337302982.46 1207161686.81 * * * ?????
Entrusted borrowings 2089923918.27 2054850296.35 ?
Unsecured loan 2743058366.07 3276240462.52
Pledge loan 102077890.63 84598475.36 ??
Less: Portion due within one
2718841649.662891407222.55
year
Total 7205788337.63 7779150079.88
* The Company has obtained long-term borrowings amounting to RMB1478977500.00 from
Shenzhen Branch of China Guangfa Bank Co. Ltd. the term of which is from 23 August 2022 to
20 December 2026 and for which the Company's parent company OCT Group provides joint and
several liability guarantee at the maximum amount.* The Company has obtained long-term borrowings amounting to RMB1290971055.64 from
Shenzhen Branch of China Development Bank Co. Ltd. the term of which is from 22 December
2022 to 22 September 2026 and for which the Company's parent company OCT Group provides
joint and several liability guarantee at the maximum amount.* The Company has obtained long-term borrowings amounting to RMB600351666.66 from the
Shenzhen Branch of Export-Import Bank of China the term of which is from 25 June 2024 to 25
June 2026 and for which the Company's parent company OCT Group provides joint and several
liability guarantee at the maximum amount.* The Company's subsidiary Anhui Konka has obtained long-term borrowings amounting to
RMB80083333.33 from Chuzhou Plaza Sub-branch of China Construction Bank Co. Ltd. the
term of which is from 29 October 2021 to 26 October 2026 and for which the Company provides
joint and several liability guarantee.* The Company's subsidiary Anhui Konka has obtained long-term borrowings amounting to
RMB48486886.48 from Chuzhou Branch of Agricultural Bank of China Co. Ltd. the term of
which is from 29 June 2023 to 28 June 2028 and for which the Company provides joint and
several liability guarantee.* The Company's subsidiary Anhui Tongchuang has obtained long-term borrowings amounting
to RMB29029000.00 from Chuzhou Branch of China Everbright Bank Co. Ltd. the term of
which is from 26 December 2023 to 25 June 2025 and for which the Company provides joint and
several liability guarantee at the maximum amount.* The Company's subsidiary Konka Xinyun Semiconductor has obtained long-term borrowings
amounting to RMB42812500.00 from Yancheng Branch of Huaxia Bank Co. Ltd. the term of
which is from 15 September 2021 to 21 August 2026 and for which the Company provides joint
and several liability guarantee.
1 29* The Company's subsidiary Sichuan Konka has obtained long-term borrowings amounting to
RMB28053，833.34 from Yibin Rural Commercial Bank Co. Ltd. the term of which is from 23
May 2023 to 26 April 2026 and for which the Company provides joint and several liability
guarantee.* The Company's subsidiary GuangDong XingDa HongYe Electronic Co. Ltd. has obtained
long-term borrowings amounting to RMB53501054.41 from Chengdu Branch of Industrial Bank
Co. Ltd. the term of which is from 25 January 2024 to 7 November 2038 and for which the
Company and Guangdong Shudian Technology Development Enterprise (Limited partnership)
provide joint and several liability guarantee at the maximum amount.* The Company has obtained long-term borrowings amounting to RMB399892032.96 from
Guanlan Sub-branch of Shenzhen Rural Commercial Bank Co. Ltd. the term of which is from 21
January 2021 to 17 January 2027 and for which it provides land use rights of a carrying value of
RMB4224230.38 and investment properties of a carrying value of RMB572516043.72 and
properties and buildings of a carrying value of RMB61612474.97 as mortgage.* The Company's subsidiary Anhui Konka has obtained long-term borrowings amounting to
RMB80309336.72 from Chuzhou Branch of Industrial Bank Co. Ltd. the term of which is from
16 July 2021 to 15 July 2031 and for which it provides fixed assets of a carrying value of
RMB184184937.36 and land use rights of a carrying value of RMB17806394.67 as mortgage
and for which the Company provides joint and several liability guarantee.* The Company's subsidiary Dongguan Konka has obtained long-term borrowings amounting to
RMB331310338.95 from Dongguan Fenggang Sub-branch of Agricultural Bank of China Co.Ltd. the term of which is from 23 June 2021 to 21 October 2030 and for which it provides land
use rights as intangible assets of a carrying value of RMB183797800.67 as mortgage and the
Company provides joint and several liability guarantee.?The Company's subsidiary Nantong Kanghai has obtained long-term borrowings amounting to
RMB47955164.36 from Haimen Sub-branch of Bank of Suzhou Co. Ltd. the term of which
from 24 April 2023 to 25 July 2025 and for which it provides land use rights and construction in
progress of a carrying value of RMB261709900.51 as mortgage.?The Company's subsidiary Shanxi Konka Intelligent has obtained long-term borrowings
amounting to RMB247747500.00 from Shanxi Free Trade Zone Xi'an International Port Area
Sub-branch of Industrial and Commercial Bank of China Co. Ltd. the term of which is from 28
September 2023 to 3 November 2033 and for which it provides investment properties of a
carrying value of RMB70800534.86 properties and buildings of a carrying value of
RMB257597123.66 and land use rights of a carrying value of RMB109812076.81 as mortgage.?The Company's subsidiary Xi'an Kanghong Technology Industry has obtained long-term
borrowings amounting to RMB81540943.64 from the Business Department of Shanxi Branch of
Bank of Communications Co. Ltd. the term of which is from 15 June 2023 to 31 December 2032
and for which it provides properties and buildings and land use rights of a carrying value of
RMB215867892.57 as mortgage and the Company provides joint and several liability guarantee
at the maximum amount.?The Company's subsidiary Yantai Kangjin has obtained long-term borrowings amounting to
RMB11100000.00 from Yantai Rural Commercial Bank Co. Ltd. the term of which is from 16
January 2023 to 12 February 2026 and for which it provides construction in progress of a carrying
value of RMB46810437.16 as mortgage.? The Company's subsidiary Chongqing Konka has obtained long-term borrowings amounting
to RMB137447665.83 from Chongqing Liangjiang Branch of Industrial and Commercial Bank
of China Co. Ltd. the term of which is from 30 December 2022 to 29 December 2037 and for
which it provides properties and buildings of a carrying value of RMB333838258.53 and land
use rights of a carrying value of RMB44097359.88 as mortgage and the Company provides joint
and several liability guarantee at the maximum amount.?The Company's parent company OCT Group has extended entrusted loans amounting to
RMB2089923918.27 to the Company through China Merchants Bank Co. Ltd. the term of
1 30which is from 10 January 2022 to 25 May 2025.
?The Company's subsidiary Yibin Kangrun Medical has obtained long-term borrowings
amounting to RMB52311352.44 from Yibin Branch of Industrial and Commercial Bank of China
Co. Ltd. with the accounts receivable arising from the prospective earnings from a franchise
agreement with an appraisal value of RMB595900000.00 as pledge and the term thereof is from
30 June 2022 to 15 April 2040.
?The Company's subsidiary Yibin Kangrun Medical has obtained long-term borrowings
amounting to RMB49766538.19 from Yibin Branch of Postal Savings Bank of China Co. Ltd.with the accounts receivable arising from the prospective earnings from a franchise agreement
with an appraisal value of RMB595900000.00 as pledge and the term thereof is from 30 June
2022 to 15 April 2040.
35. Bonds payable
（1） List of Bonds Payable
Item Closing balance Opening balance
Corporate bonds 5627894268.31 4797565000.12
Less: Bonds payable due within one year 830985555.48 2370572421.45
Total 4796908712.83 2426992578.67
（2） Changes in bonds payable
Bond
Bond name Total par value Issue date Issue amount Opening balance
maturity
21Konka01 Three
1000000000.002021/1/8996500000.001043732777.88
(note a) years
21Konka02 Three
500000000.002021/5/21498250000.00512094339.67
(note b) years
21Konka03 Three
800000000.002021/7/9797200000.00814745303.93
(note c) years
22Konka01 Three
1200000000.002022/7/141195800000.001217398867.91
(note d) years
22Konka03 Three
600000000.002022/9/8597900000.00605499371.09
(note e) years
22Konka05 Three
600000000.002022/10/18597900000.00604094339.64
(note f) years
24Konka01 Three
1500000000.002024/1/291495200000.00
(note g) years
24Konka02 Three
400000000.002024/3/18398720000.00
(note h) years
24Konka03 Three
400000000.002024/3/18398720000.00
(note i) years
Total 7000000000.00 6976190000.00 4797565000.12
(Continued)
1 31Issuance in the current Accrue interest by Amortisation of
Bond name
period par value premium/discount
21Konka01 (note a) 867222.12
21Konka02 (note b) 7722222.21 183438.12
21Konka03 (note c) 15800000.00 440251.55
22Konka01 (note d) 19380000.00 660377.29
22Konka03 (note e) 9900000.00 330188.74
22Konka05 (note f) 10500000.00 330188.74
24Konka01 (note g) 1495200000.00 25500000.00 998113.18
24Konka02 (note h) 398720000.00 4622222.21 199077.58
24Konka03 (note i) 398720000.00 4656888.88 199077.57
Total 2292640000.00 98948555.42 3340712.77
(Continued)
Prepayment in the current
Bond name Closing balance
period
21Konka01 (note a) 1044600000.00
21Konka02 (note b) 520000000.00
21Konka03 (note c) 830985555.48
22Konka01 (note d) 1237439245.20
22Konka03 (note e) 615729559.83
22Konka05 (note f) 614924528.38
24Konka01 (note g) 1521698113.18
24Konka02 (note h) 403541299.79
24Konka03 (note i) 403575966.45
Total 1564600000.00 5627894268.31
Note 1:
a: On 8 January 2021 the Company issued RMB1 billion of private placement corporate bonds
with the duration of three years the annual interest rate of 4.46% and the due date of 8 January
2024. "21 Konka 01" was fully redeemed and delisted from the exchange on 8 January 2024.
b: On 21 May 2021 the Company issued RMB500 million of private placement corporate bonds
with the duration of three years the annual interest rate of 4.00% and the due date of 21 May 2024."21 Konka 02" was fully redeemed and delisted from the exchange on 21 May 2024.c: On 9 July 2021 the Company issued RMB800 million of private placement corporate bonds
with the duration of three years the annual interest rate of 3.95% and the due date of 9 July 2024."21 Konka 03" was fully redeemed and delisted from the exchange on 9 July 2024.d: On 14 July 2022 the Company issued RMB1.2 billion of public placement corporate bonds
with the duration of three years the annual interest rate of 3.23% and the due date of 14 July 2025.e: On 8 September 2022 the Company issued RMB600 million of private placement corporate
1 32bonds with the duration of three years the annual interest rate of 3.30% and the due date of 8
September 2025.f: On 18 October 2022 the Company issued RMB600 million of private placement corporate
bonds with the duration of three years the annual interest rate of 3.50% and the due date of 18
October 2025.g: On 29 January 2024 the Company issued RMB1.5 billion of private placement corporate bonds
with the duration of three years the annual interest rate of 4.00% and the due date of 29 January
2027.
h: On 18 March 2024 the Company issued RMB0.4 billion of private placement corporate bonds
with the duration of three years the annual interest rate of 4.00% and the due date of 18 March
2027.
i: On 18 March 2024 the Company issued RMB0.4 billion of private placement corporate bonds
with the duration of three years the annual interest rate of 4.03% and the due date of 18 March
2027.
Note 2: OCT Group provided full-amount unconditional and irrevocable joint and several
liabilities guarantee for the due payment of the public and private offering of corporate bonds.
36. Lease liabilities
Item Closing balance Opening balance
Lease liabilities 216913078.79 212244920.84
Less: Lease liabilities due within one year (see
50971866.2352026101.92
Note VI-32)
Total 165941212.56 160218818.92
37. Long-term payables
Item Closing balance Opening balance
Payables for equipment 5488624.85 6823209.13
Less: Unrecognised financing expenses 390942.07 545824.62
Less: Amount due within one year (see Note
140336.20141650.44
VI-32)
Total 4957346.58 6135734.07
38. Long-term payroll payables
Item Closing balance Opening balance
Termination benefits-net liabilities of defined
4661069.674718466.37
contribution plans
1 33Item Closing balance Opening balance
Total 4661069.67 4718466.37
39. Estimated liabilities
Item Closing balance Opening balance Cause(s)
Pending litigation 206591.51 206591.51
Discard expenses 1684347.81 1644068.13
After-sales of household
Product quality assurance 120667033.32 101726574.07
appliances
Performance compensation 200942606.09 200942606.09
Total 323500578.73 304519839.80
1 3440. Deferred revenue
（1） Category of deferred income
Increase in the current Decrease in the current
Item Opening balance Closing balance Cause(s)
period period
Government grants 425135237.90 15638700.00 32082830.68 408691107.22 Related to assets/income
Total 425135237.90 15638700.00 32082830.68 408691107.22
（2） Government subsidy items
Amount Amount
Subsidies recognised as recognised as
Related to
Government subsidy items Opening balance increased in the non-operating other income in Other changes Closing balance
assets/income
current period income in the the current
current period period
Headquarters 8K device-side
22424922.40 3000000.00 1064187.26 24360735.14 Related to assets
R&D project of Konka Group
Plant construction subsidy for
103545436.45 1159766.16 102385670.29 Related to assets
Yibin Konka Industrial Park
Plant decoration subsidy for
10074508.36 719607.72 9354900.64 Related to assets
Yibin Konka Industrial Park
Equipment subsidy for Konka
Related to
Xinyun Semiconductor 9696681.53 449675.04 9247006.49
income
(Yancheng)
Returned payments for land by
17934545.55 196363.62 17738181.93 Related to assets
Chongqing Konka
1 35Amount Amount
Subsidies recognised as recognised as
Related to
Government subsidy items Opening balance increased in the non-operating other income in Other changes Closing balance
assets/income
current period income in the the current
current period period
Medical waste centralised
treatment project in Gaoxian 29150950.10 865869.78 28285080.32 Related to assets
County Yibin City
Other government subsidies Related to
232308193.5112638700.0013627361.1014000000.00217319532.41
related to assets/income assets/income
Total 425135237.90 15638700.00 18082830.68 14000000.00 408691107.22
1 3641. Other non-current liabilities
Item Closing balance Opening balance
Contract liabilities over one year 205172360.96 179996351.33
Total 205172360.96 179996351.33
42. Share capital
Increase/decrease (+/-) in the current period
Bonus
Item Opening balance New Closing balance
Bonus issue
shares Others Subtotal
issue from
issued
profit
Total
2407945408.002407945408.00
shares
43. Capital reserves
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Other capital
526499506.766498827.3911288034.03521710300.12
surplus
Total 526499506.76 6498827.39 11288034.03 521710300.12
Note: Capital surplus for the Reporting Period--other capital surplus increase and decrease due to
the main reasons:
* The associated enterprise Wuhan Tianyuan Environmental Protection Co. Ltd. issued
conversion of convertible bonds resulting in a decrease in other capital surplus of
RMB11288034.03.* The equity incentives of the associated enterprise Hefei KONSEMI Storage Technology Co.Ltd. resulted in an increase in other capital surplus of RMB6498827.39.
1 3744. Other comprehensive income
Beginning of the
Amount incurred in the current period End of the period
period
Less: Amount
Less: Amount
recognised as
recognised as
other
other
Item comprehensive comprehensive Attributable to Attributable to
Amount incurred income in the
income in the Less: Income the parent minority
Balance before income tax in previous period Balance
previous period tax expense company after shareholders after
the current period and transferred
and transferred to tax tax
to retained
profit or loss in
earnings in the
the Reporting
Reporting
Period
Period
I. Other comprehensive
income that cannot be
-6398878.20-6398878.20
reclassified as profits or
losses
Changes in the fair value of
other equity instrument -6398878.20 -6398878.20
investments
Others
II. Other comprehensive
income reclassified as -7044680.24 -2253474.92 -681509.64 -1571965.28 -7726189.88
profits and losses
Including: Other
comprehensive income that
can be transferred to profits -4115978.90 -83919.23 -83919.23 -4199898.13
or losses under the equity
method
Exchange difference on -2928701.34 -2169555.69 -597590.41 -1571965.28 -3526291.75
translating foreign
1 38Beginning of the
Amount incurred in the current period End of the period
period
Less: Amount
Less: Amount
recognised as
recognised as
other
other
Item comprehensive comprehensive Attributable to Attributable to
Amount incurred income in the
income in the Less: Income the parent minority
Balance before income tax in previous period Balance
previous period tax expense company after shareholders after
the current period and transferred
and transferred to tax tax
to retained
profit or loss in
earnings in the
the Reporting
Reporting
Period
Period
operations
Total of other
-13443558.44-2253474.92-681509.64-1571965.28-14125068.08
comprehensive income
1 3945. Special reserve
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Safety production fund 4657488.24 2537402.71 579353.59 6615537.36
Total 4657488.24 2537402.71 579353.59 6615537.36
46. Surplus reserves
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Statutory surplus
1005961774.191005961774.19
reserves
Discretionary
238218590.05238218590.05
surplus reserves
Total 1244180364.24 1244180364.24
47. Unappropriated profit
Item The current period Last period
Balance as at the end of last period 1474561975.85 3638352029.02
Add: Total beginning balance of retained earnings before
adjustments
Including: Changes in accounting policies
Opening balance of current period 1474561975.85 3638352029.02
Add: Net profit attributable to owners of the parent
-1087581842.55-2163790053.17
company in the current period
Less: Appropriation of statutory surplus reserves
Ordinary share dividends payable
Closing balance of the current period 386980133.30 1474561975.85
48. Operating revenue and cost of sales
（1） Operating income and operating costs
Amount incurred in the current period Amount incurred last period
Item
Income Cost Income Cost
Principal 9989383650.13 9658914170.75
5085252685.024774748009.74
business
Other 482677521.81 420429613.36
327277687.45235221605.28
business
1 40Item Amount incurred in the current period Amount incurred last period
Total 5412530372.47 5009969615.02 10472061171.94 10079343784.11
（2） Information on the breakdown of operating revenue and cost of sales
Category of contracts Operating income Operating expenses
Business type
Of which: Consumer appliances
2247070655.482014585214.49
business
Colour TV
2115790827.612069113672.93
business
PCB business 231558538.52 201913961.50
Semiconductor and
82962696.19104195917.13
memory chip business
Other business 735147654.67 620160848.97
Total 5412530372.47 5009969615.02
Classified by operating region
Of which: Domestic 4046161239.69 3696751585.18
Overseas 1366369132.78 1313218029.84
Total 5412530372.47 5009969615.02
（3） Information in relation to the trade price apportioned to the residual contract
performance obligation
The amount of revenue corresponding to performance obligations that have been contracted but
have not yet been fulfilled or completed at the end of the period is RMB1061116290.83 of
which RMB885586483.67 is expected to be recognised as revenue in 2024 and the remaining
RMB175529807.16 is expected to be recognised as revenue in 2025 and following years.
49. Taxes and surcharges
Amount incurred in the Amount incurred last
Item
current period period
Stamp duty 20423713.44 17006122.55
Land use tax 10267616.69 8628212.80
Property tax 22000493.47 9429982.31
City maintenance & construction tax 3736313.54 3916672.25
Educational surcharge 1783117.24 1795764.31
Local educational surcharge 1124579.62 1197136.14
1 41Amount incurred in the Amount incurred last
Item
current period period
Water resources fund 466801.02 474599.45
Others 4890300.09 270476.72
Total 64692935.11 42718966.53
50. Selling expenses
Amount incurred in the Amount incurred last
Item
current period period
Employee benefits 179816426.03 171827349.50
Advertising expense 58845808.44 114639309.81
Warranty fee 97656311.72 80388332.75
Promotional activities 81436139.43 95664759.55
Logistic Fee 36650239.62 41136310.25
Travel expenses 10047637.20 9554537.27
Lease expense 4534869.11 5281279.82
Entertainment fees 5092642.27 6056077.13
Exhibition expenses 3678606.92 5525688.44
Taxes and fund 549965.00
Others 17617773.52 27913056.01
Total 495376454.26 558536665.53
51. Administration expenses
Amount incurred in the Amount incurred last
Item
current period period
Employee benefits 154300923.47 201752601.81
Depreciation charges 112987437.91 103962882.38
Intermediary fees 10762242.10 20680100.93
Travel expenses 3069025.63 6391903.53
Water and electricity expenses 6470775.15 5169402.73
Loss on scraping of inventories 544223.62 580512.03
Others 27811392.14 51707164.36
Total 315946020.02 390244567.77
1 4252. R&D expense
Amount incurred in the Amount incurred last
Item
current period period
Salary 112601611.50 125331251.82
Depreciation and amortisation charge 55043697.25 52673986.51
New product trial production expense 13867547.29 12377094.01
Material expense 9254000.43 17796228.66
Commission service fee 222156.14 2048184.94
Testing expense 2797313.59 3249155.22
Information use fee 369876.67 360938.22
Others 20421823.94 23197053.73
Total 214578026.81 237033893.11
53. Finance costs
Amount incurred in the Amount incurred last
Item
current period period
Interest expense 407018728.71 432772700.64
Less: Interest income 116244724.79 123908981.38
Add: Exchange loss -25405623.27 -133558528.06
Other expenses 15543995.01 23770433.30
Total 280912375.66 199075624.50
54. Other income
Amount incurred in the Amount incurred last
Resources
current period period
Support funds 13782260.00 70000000.00
Rewards and subsidies 22036812.48 23457361.87
Transfer of deferred income 18082830.68 38449192.67
Software tax refund 1596783.94 3434829.42
Post subsidies 110985.80 541457.45
Subsidies for L/C exports 1158714.67 2034374.00
Tax rebates and refunds 56768387.57 137917215.41
55. Investment income
1 43Amount incurred in the Amount incurred last
Item
current period period
Returns on long-term equity investments
-41296057.12-30242661.05
calculated by the equity method
Return on investment arising from the
2450000.00188118447.66
disposal of long-term equity investments
Conversion of long-term equity investments
accounted for by the equity method to 574780174.75
financial assets
Income from remeasurement of residual stock
51474909.15
rights at fair value after losing control power
Interest income from debt investments during
9640886.0236609075.35
the holding period
Return on investment in the financial assets
4240444.629383976.00
held for trading during the holding period
Income from the derecognition of financial
-1970677.82
assets at amortized cost
Investment income from disposal of financial
11456.91-3794910.98
assets at fair value through profit or loss
Others 31971391.61 500000.00
Total 5047444.22 826829010.88
56. Income from changes in the fair value
Sources of income from changes in the fair Amount incurred in the
Amount incurred last period
value current period
Financial assets at fair value through profit or
-179800523.76-132580077.43
loss
Total -179800523.76 -132580077.43
57. Credit impairment loss
Amount incurred in the
Item Amount incurred last period
current period
Bad debt loss of notes receivable -16435.60 6446862.01
Bad debt loss of accounts receivable -25990993.24 -50164953.87
Bad debt loss of other accounts receivable -137072004.34 -96474587.50
Total -163079433.18 -140192679.36
58. Impairment losses on assets
Amount incurred in the
Item Amount incurred last period
current period
1 44Amount incurred in the
Item Amount incurred last period
current period
Inventory depreciation loss and contract
-81109796.34-15274484.20
performance cost impairment loss
Impairment loss of long-term equity
-245911.63
investments
Impairment loss on fixed assets -10646284.08
Contractual asset impairment loss -10874.90 -9012.56
Total -92012866.95 -15283496.76
59. Asset disposal income ("-" for loss)
Amount recorded
into the
Amount incurred in Amount incurred
Item non-recurring profit
the current period last period
or loss of current
period
Incomes from disposal of
held-for-sale assets
Incomes from disposal of non-current
590329.3864713.62590329.38
assets
Including: incomes from disposal of
non-current assets not classified as 590329.38 64713.62 590329.38
held-for-sale assets
Including: Fixed assets disposal
54072.55-195494.5554072.55
income
Intangible assets disposal
18588.36
income
Income from disposal of
construction in progress
Right-of-use assets disposal
536256.83241619.81536256.83
income
Income from non-monetary assets
exchange
Income from disposal of non-current
assets in debt restructuring
Total 590329.38 64713.62 590329.38
60. Non-operating income
（1） List of Non-operating Income
1 45Amount recorded
into the
Amount incurred in Amount incurred
Item non-recurring profit
the current period last period
or loss of current
period
Compensation and penalty income 3092879.89 2522169.54 3092879.89
Government grants not related to the
8708660.28
ordinary activities of the enterprise
Non-current assets damage and
7433.54450.007433.54
retirement gains
Others 12673210.46 6094337.36 12673210.46
Total 15773523.89 17325617.18 15773523.89
（2） Government subsidies recorded in profit or loss of the current period
The Company had no government subsidies recorded in profit or loss in the current period.
61. Non-operating expenses
Amount recorded
into the
Amount incurred in Amount incurred
Item non-recurring profit
the current period last period
or loss of current
period
Losses on damage and scraping of
2221846.151419908.802221846.15
non-current assets
Compensation expense 294044.54 54800.00 294044.54
Others 3639914.15 2851899.22 3639914.15
Total 6155804.84 4326608.02 6155804.84
62. Income tax expense
（1） Income tax expense
Amount incurred in the current
Item Amount incurred last period
period
Income tax expense in the current
7537422.2927239426.46
period
Deferred income tax expense -58813265.42 -43950094.04
Total -51275843.13 -16710667.58
（2） Adjustment process of accounting profits and income tax expenses
Item Amount incurred in the current period
Total consolidated profit in the current period -1331813998.08
Income tax expense calculated at legal/applicable tax rate -332953499.52
1 46Item Amount incurred in the current period
Impact of different tax rates applied by subsidiaries 49670857.48
Impact of income tax in the periods before adjustment 2029136.42
Impact of non-taxable income -1326854.19
Impacts of non-deductible costs expenses and losses 6364150.59
Impact of using deductible losses on the deferred tax assets not
-3249242.62
recognised previously
Impact of deductible temporary differences or deductible
losses of deferred tax assets not recognised in the current 232204752.55
period
Changes in the balance of deferred income tax assets/
liabilities in previous period due to adjustment of tax rate
Others -4015143.83
Income tax expense -51275843.13
63. Other comprehensive income
For details please refer to "Note VI-44 Other comprehensive income".
64. Items in the cash flow statement
（1） Cash related to operating activities
1） Other cash received related to operating activities
Amount incurred in the
Item Amount incurred last period
current period
Income from government subsidies 48053764.37 196790552.27
Front money and guarantee deposit 46360237.95 107899740.15
Trading funds 30412346.71 45235678.79
Interest income from bank deposits 42714837.97 49564086.35
Compensation and penalty income 7630486.32 8691566.66
Others 35512873.11 26051273.52
Total 210684546.43 434232897.74
2） Other cash paid related to operating activities
Amount incurred in the
Item Amount incurred last period
current period
Cash payment fee 402018344.95 535602399.78
1 47Amount incurred in the
Item Amount incurred last period
current period
Deposit and margin 44313952.61 146237387.07
Payment made on behalf 124940.56 5640757.14
Expense for bank handling charges 2373726.27 2735395.17
Others 16687924.10 65077290.21
Total 465518888.49 755293229.37
（2） Cash related to investment activities
1） Significant cash received related to investment activities
Amount incurred in the
Item Amount incurred last period
current period
Recovery of loan at call 10535206.45 382971149.03
Total 10535206.45 382971149.03
2） Significant cash paid related to investment activities
Amount incurred in the
Item Amount incurred last period
current period
Payment of loan at call 310116949.03
Total 310116949.03
3） Other cash received related to investment activities
Amount incurred in the
Item Amount incurred last period
current period
Recovery of loan at call 10535206.45 382971149.03
Cash received from acquisition of
subsidiaries
Others 12609773.16 46988449.65
Total 23144979.61 429959598.68
4） Other cash paid related to investment activities
Amount incurred in the
Item Amount incurred last period
current period
Payment of loan at call 310116949.03
Cash paid for disposal of subsidiaries
Others 2127401.00 161037718.80
1 48Amount incurred in the
Item Amount incurred last period
current period
Total 2127401.00 471154667.83
（3） Cash related to financing activities
1） Other proceeds received related to financing activities
Amount incurred in the
Item Amount incurred last period
current period
Recovery of margin deposit pledged 354016478.39 219929641.72
Receiving loan at call 50370200.00
Others
Total 354016478.39 270299841.72
2） Other cash paid related to financing activities
Amount incurred in the
Item Amount incurred last period
current period
Deposit as margin for pledge 663728905.41 401172422.54
Cash paid for leases 21561318.50 62969375.44
Retuning loan at call 17268436.34 1870614.17
Financing cost 13578122.88 20729450.01
Others 4101071.57
Total 720237854.70 486741862.16
1 493） Changes in liabilities arising from financing activities
Increase in the current period Decrease in the current period
Item Opening balance Closing balance
Cash changes Non-cash changes Cash changes Non-cash changes
Non-current liabilities due
5314147396.363554889000.054420572739.53847524249.313600939407.57
within one year
Short-term loans 6390592056.27 4722488141.61 95250537.68 4698063104.58 180000.03 6510087630.95
Long-term loans 7779150079.88 2399991403.90 220066042.50 474380098.93 2719039089.72 7205788337.63
Bonds payable 2426992578.67 2292640000.00 916756951.59 8495261.95 830985555.48 4796908712.83
Lease liabilities 160218818.92 38146433.42 18785621.02 13638418.76 165941212.56
Long-term payables 6135734.07 156196.78 1156606.99 177977.28 4957346.58
Total 22077236664.17 9415119545.51 4825265162.02 9621453433.00 4411545290.58 22284622648.12
1 50（4） Notes to the presentation of cash flows on a net basis
No cash flows were presented on a net basis in the current period.
（5） Significant activities and financial effects that do not involve current cash
receipts and payments but affect the financial position of the enterprise or may affect the
enterprise's cash flows in the future
Item Amount incurred in the current period
Payment for materials made by endorsement of notes
1011509768.95
receivable
Acquisition of long-term assets by endorsement of notes
47756919.89
receivable
Other payments made by endorsement of notes receivable 86393313.21
65. Supplementary data on the statements of cash flows
（1） Supplementary data on the statements of cash flows
Amount of current
Item Amount of last period
period
1. Reconciliation of net profit to cash flows from
——
operating activities:
Net profit -1280538154.95 -328427966.51
Add: Provision for asset impairment 92012866.95 15283496.76
Credit impairment loss 163079433.18 140192679.36
Depreciation of fixed assets depletion of oil and gas
229778679.61217019718.21
assets and depreciation of productive biological assets
Depreciation of right-of-use assets 28010441.12 11748166.57
Amortisation of intangible assets 25884982.90 26128581.85
Amortisation of long-term prepaid expense 68829106.66 62948271.42
Losses on disposal of fixed assets intangible assets
-590329.38-64713.62
and other long-lived assets (" " indicates income)
Losses on scrap of fixed assets (" " indicates income) 2214412.61 1419458.80
Losses on changes in fair value (" " indicates income) 179800523.76 132580077.43
Finance costs (" " indicates income) 354429278.33 383689359.03
Investment loss (" " indicates income) -5047444.22 -826829010.88
Decrease in deferred income tax assets (" " indicates
-13013812.53-154867914.83
increase)
Increase in deferred income tax liabilities (" " -45799452.88 110917820.79
1 51Amount of current
Item Amount of last period
period
indicates decrease)
Decrease in inventories (" " indicates increase) -286354098.48 -265531923.08
Decrease in accounts receivable generated from
106159668.4113821648.87
operating activities (" " indicates increase)
Increase in accounts payable used in operating
-40111635.54296871337.26
activities (" " indicates decrease)
Others -18082830.68 -38449192.67
Net cash flows from operating activities -439338365.13 -201550105.24
2. Significant investment and financing activities not
involving cash
Conversion of liabilities into capital
Convertible corporate bonds due within one year
Fixed assets acquired under finance leases
3. Net changes in cash and cash equivalents:
Balance of cash at the end of the period 4378374510.08 6030068656.57
Less: Opening balance of cash 5674784349.55 5461912010.90
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents -1296409839.47 568156645.67
（2） Net cash paid for the acquisition of subsidiaries in the current period
No such cases in the Reporting Period.
（3） Net cash received for the disposal of subsidiaries in the current period
No such cases in the Reporting Period.
（4） Composition of cash and cash equivalents
Item Closing balance Opening balance
Cash 4378374510.08 5674784349.55
Including: Cash on hand 469.28
Bank deposits available for payment at any
4375229927.845672034875.67
time
Other monetary funds available for payment at
3144582.242749004.60
any time
1 52Item Closing balance Opening balance
Balance of cash and cash equivalents at the end of the
4378374510.085674784349.55
period
（5） Presentation of cash and cash equivalents with restricted use
Reasons for classifying
Amount of current
Item Amount of last period the funds as cash and
period
cash equivalents
The proceeds can be
used at any time to
Project loan proceeds 22487519.50 20347896.55 make payments and
such payments can only
be made for projects
The proceeds can be
used at any time to
Project pre-sale funds 18266154.30 22377807.75 make payments and
such payments can only
be made for projects
Total 40753673.80 42725704.30 —
（6） Monetary funds not classified as cash and cash equivalents
Reasons for not
Amount of current classifying the funds as
Item Amount of last period
period cash and cash
equivalents
It is pledged for
borrowing or deposit for
Cash deposit 441866862.11 440390112.54
issuance of banker
acceptance
The management
Time deposits 469680000.00 226700000.00 intends to hold the
deposits to maturity
Not readily available for
Frozen funds 224449207.24 211180037.05
payment
Total 1135996069.35 878270149.59 —
66. Items in the Statement of Changes in Shareholders' Equity
No "other" amount in the closing amount of last year was adjusted in the current period.
67. Foreign currency monetary items
（1） Foreign currency monetary items
Period-end foreign Period-end balance
Item Exchange rate
currency balance denominated in RMB
Monetary assets
Including: USD 66033733.90 7.1268 470609214.76
1 53Period-end foreign Period-end balance
Item Exchange rate
currency balance denominated in RMB
EUR 102467.40 7.6617 785074.48
EGP 55989392.53 0.1484 8307832.66
GBP 1.32 9.0430 11.94
HKD 3461326.45 0.9127 3159083.42
CAD 6.96 5.2274 36.38
PLN 3231330.02 1.7689 5715829.73
Accounts receivable
Including: USD 83486351.12 7.1268 594990527.16
EUR 439537.80 7.6617 3367606.76
EGP 2131.64 0.1484 316.30
HKD 57955633.95 0.9127 52894947.99
AUD 49764.00 4.7992 238827.39
Accounts payable
Including: USD 5750797.03 7.1268 40984780.27
HKD 923023.67 0.9127 842425.24
Other accounts receivable
Including: USD 108427213.73 7.1268 772739066.81
EGP 108000.00 0.1484 16025.28
HKD 1028048.88 0.9127 938279.65
JPY 21400000.00 0.0501 1072011.60
Accounts payable
Including: USD 33913641.95 7.1268 241695743.45
EUR 48742.86 7.8771 383952.38
EGP 44720358.59 0.2338 10457617.06
HKD 906393.76 0.9127 827247.46
Other payables
Including: USD 4401044.69 7.1268 31365365.30
EUR 152526.56 7.6617 1168612.74
EGP 411311.00 0.2338 96182.88
1 54Period-end foreign Period-end balance
Item Exchange rate
currency balance denominated in RMB
HKD 2161652.99 0.9127 1972897.45
（2） Overseas entities
The significant overseas entities include Hongdin Trading Hong Kong Konka Chain Kingdom
Memory Technologies Kangjietong Jiali International and Kowin Memory (Hong Kong). The
main overseas operating place is Hong Kong. The Company's recording currency is HKD since
the main currency in circulation in Hong Kong is HKD.VII. R&D expenditures
Amount incurred in the current
Item Amount incurred last period
period
Salary 112601611.50 125331251.82
Depreciation and amortisation
55043697.2552673986.51
charge
New product trial production
13867547.2912377094.01
expense
Material expense 9254000.43 17796228.66
Commission service fee 222156.14 2048184.94
Testing expense 2797313.59 3249155.22
Information use fee 369876.67 360938.22
Others 20421823.94 23197053.73
Total 214578026.81 237033893.11
Including: Expensed R&D
214578026.81237033893.11
expenditure
Capitalised R&D expenditure
VIII. Changes in the Scope of Consolidation
1. Combinations of businesses not under common control
The Company had no combinations of businesses not under common control in the Reporting
Period.
2. Combinations of businesses under common control
The Company had no combinations of businesses under common control in the Reporting Period.
1 553. Disposal of subsidiaries
No such cases in the Reporting Period.
4. Changes in the scope of consolidation due to other reasons
(1) Subsidiaries established in the current period
No subsidiaries were established in the current period.
(2) Subsidiaries cancelled in the current period
Registered capital Shareholding Liquidation completion
Subsidiary
(RMB'0000) percentage (%) time
Chengdu Anren 500.00 51.00 28 April 2024
Wankaida 1000.00 100.00 22 January 2024
Konka Intelligent
2000.00 51.00 29 February 2024
Manufacturing
(3) Other
On 29 February 2024 the People's Court of Ganjingzi District Dalian Liaoning Province issued a
civil ruling stipulating that the bankruptcy and liquidation application submitted by the Company's
subsidiary Konka Huanjia shall be accepted and relevant assets were officially handed over to the
receiver on 14 March 2024. The control over them has been transferred and the assets are no
longer included in the scope of consolidation.
1 56IX. Interests in other entities
1. Interests in subsidiaries
（1） Composition of the business group
Shareholding percentage
Main place of (%) Acquisition
No. Subsidiary Place of registration Business nature
business method
Direct Indirect
Guangdong Guangdong Enterprise management consulting incubation Establishment
1 Konka Ventures 51
Shenzhen Shenzhen management housing leasing etc. or investment
Other professional consultation and Establishment
2 Yantai Konka Shandong Yantai Shandong Yantai 51
investigation or investment
Establishment
3 Konka Enterprise Service Guizhou Guiyang Guizhou Guiyang Enterprise management consulting 51
or investment
Establishment
4 Yibin Konka Incubator Sichuan Yibin Sichuan Yibin Commercial services 51
or investment
Establishment
5 Anhui Konka Anhui Chuzhou Anhui Chuzhou Manufacturing 78
or investment
Establishment
6 Kangzhi Trade Anhui Chuzhou Anhui Chuzhou Wholesale 78
or investment
Guangdong Guangdong Other science and technology promotion Establishment
7 Konka Electronic Materials 100
Shenzhen Shenzhen services or investment
Guangdong Guangdong Establishment
8 Konka Unifortune Trade and services 51
Shenzhen Shenzhen or investment
Establishment
9 Jiali International China Hong Kong China Hong Kong Trade and services 51
or investment
Guangdong Guangdong Establishment
10 Dongguan Konka Manufacturing 75 25
Dongguan Dongguan or investment
Establishment
11 Suining Konka Smart Sichuan Suining Sichuan Suining Wholesale 100
or investment
Establishment
12 Konka Europe Germany Frankfurt Germany Frankfurt International trade 100
or investment
1 57Shareholding percentage
Main place of (%) Acquisition
No. Subsidiary Place of registration Business nature
business method
Direct Indirect
Telecommunication Guangdong Guangdong Establishment
13 Manufacturing 75 25
Technology Shenzhen Shenzhen or investment
Establishment
14 Konka Mobility China Hong Kong China Hong Kong Commerce 100
or investment
Guangdong Guangdong Establishment
15 Mobile Interconnection Commerce 100
Shenzhen Shenzhen or investment
Establishment
16 Sichuan Konka Sichuan Yibin Sichuan Yibin Manufacturing 100
or investment
Establishment
17 Yibin Smart Sichuan Yibin Sichuan Yibin Manufacturing 100
or investment
Establishment
18 Anhui Tongchuang Anhui Chuzhou Anhui Chuzhou Manufacturing 100
or investment
Establishment
19 Anhui Electrical Appliance Anhui Chuzhou Anhui Chuzhou Manufacturing 51
or investment
Establishment
20 Frestec Refrigeration Henan Xinxiang Henan Xinxiang Manufacturing 51
or investment
Establishment
21 Frestec Smart Home Henan Xinxiang Henan Xinxiang Manufacturing 51
or investment
Establishment
22 Frestec Electrical Appliances Henan Xinxiang Henan Xinxiang Manufacturing 51
or investment
Establishment
23 Frestec Household Appliances Henan Xinxiang Henan Xinxiang Manufacturing 51
or investment
Establishment
24 Jiangsu Konka Smart Jiangsu Changzhou Jiangsu Changzhou Manufacturing 51
or investment
Establishment
25 Kangjiatong Sichuan Yibin Sichuan Yibin Trade and services 100
or investment
Guangdong Guangdong Establishment
26 Pengrun Technology Trade and services 51
Shenzhen Shenzhen or investment
Establishment
27 Jiaxin Technology China Hong Kong China Hong Kong Trade and services 51
or investment
Establishment
28 Beijing Konka Electronic Beijing Beijing Sale of home appliance 100
or investment
1 58Shareholding percentage
Main place of (%) Acquisition
No. Subsidiary Place of registration Business nature
business method
Direct Indirect
Tianjin Pilot Free Tianjin Pilot Free Establishment
29 Tianjin Konka Service Industry 100
Trade Zone Trade Zone or investment
Guangdong Guangdong Establishment
30 Konka Circuit Manufacturing 100
Shenzhen Shenzhen or investment
Establishment
31 Boluo Precision Guangdong Boluo Guangdong Boluo Manufacturing 100
or investment
Establishment
32 Boluo Konka Guangdong Boluo Guangdong Boluo Manufacturing 100
or investment
Establishment
33 Hong Kong Konka China Hong Kong China Hong Kong International trade 100
or investment
Establishment
34 Hongdin Invest China Hong Kong China Hong Kong Investment holding 100
or investment
Chain Kingdom Memory Establishment
35 China Hong Kong China Hong Kong International trade 51
Technologies or investment
Zhongkang Semiconductor Establishment
36 Zhejiang Shaoxing Zhejiang Shaoxing Trade and services 51
(Shaoxing) or investment
Establishment
37 Hongjet China Hong Kong China Hong Kong Trade and services 51
or investment
Establishment
38 Hongdin Trading China Hong Kong China Hong Kong International trade 100
or investment
Establishment
39 Kanghao Technology Egypt Cairo Egypt Cairo International trade 67
or investment
Establishment
40 Konka North America America California America California International trade 100
or investment
Guangdong Guangdong Establishment
41 Konka Investment Capital market services 100
Shenzhen Shenzhen or investment
Industrial park development and operation Establishment
42 Yibin Konka Technology Park Sichuan Yibin Sichuan Yibin 100
management or investment
Guangdong Guangdong Establishment
43 Konka Capital Capital market services 100
Shenzhen Shenzhen or investment
1 59Shareholding percentage
Main place of (%) Acquisition
No. Subsidiary Place of registration Business nature
business method
Direct Indirect
Guangdong Guangdong Establishment
44 Konka Suiyong Commercial services 51
Shenzhen Shenzhen or investment
Guangdong Guangdong Establishment
45 Shengxing Industrial Commercial services 51
Shenzhen Shenzhen or investment
Guangdong Guangdong Establishment
46 Zhitong Technology Software and information technology services 51
Shenzhen Shenzhen or investment
Guangdong Guangdong Establishment
47 Electronics Technology Manufacturing 100
Shenzhen Shenzhen or investment
Guangdong Guangdong Establishment
48 Shenzhen Kangcheng Software and information technology services 100
Shenzhen Shenzhen or investment
Guangdong Guangdong Establishment
49 Xiaojia Technology Retail trade 100
Shenzhen Shenzhen or investment
Establishment
50 Haimen Konka Jiangsu Nantong Jiangsu Nantong Trade and services 100
or investment
Establishment
51 Chengdu Konka Smart Sichuan Chengdu Sichuan Chengdu Trade and services 100
or investment
Establishment
52 Chengdu Konka Electronic Sichuan Chengdu Sichuan Chengdu Manufacturing 100
or investment
Guangdong Guangdong Establishment
53 XingDa HongYe Manufacturing 51
Zhongshan Zhongshan or investment
Establishment
54 Liaoyang Kangshun Smart Liaoning Liaoyang Liaoning Liaoyang Wholesale 100
or investment
Liaoyang Kangshun Comprehensive utilization of renewable Establishment
55 Liaoning Liaoyang Liaoning Liaoyang 100
Renewable resources or investment
Establishment
56 Nanjing Konka Jiangsu Nanjing Jiangsu Nanjing Wholesale 100
or investment
Establishment
57 Shanghai Konka Shanghai Shanghai Real estate 100
or investment
Establishment
58 Yantai Kangjin Shandong Yantai Shandong Yantai Real estate 62.8
or investment
1 60Shareholding percentage
Main place of (%) Acquisition
No. Subsidiary Place of registration Business nature
business method
Direct Indirect
Establishment
59 Jiangxi Konka Jiangxi Jiujiang Jiangxi Jiujiang Manufacturing and processing 51
or investment
Establishment
60 Xinfeng Microcrystalline Jiangxi Nanchang Jiangxi Nanchang Manufacturing and processing 51
or investment
Guangdong Guangdong Establishment
61 Shenzhen Nianhua Commercial services 100
Shenzhen Shenzhen or investment
Guangdong Guangdong Establishment
62 Shenzhen KONSEMI Semiconductors 100
Shenzhen Shenzhen or investment
Establishment
63 Chongqing Konka Chongqing Chongqing Software and information technology services 100
or investment
Guangdong Guangdong Establishment
64 Konka Eco-Development Commercial services 51
Shenzhen Shenzhen or investment
Industrial park development and operation Establishment
65 Suining Konka Industrial Park Sichuan Suining Sichuan Suining 100
management or investment
Establishment
66 Konka Ronghe Zhejiang Jiaxing Zhejiang Jiaxing Wholesale and retail trade 51
or investment
Suining Electronic Establishment
67 Sichuan Suining Sichuan Suining Commercial services 100
Technological Innovation or investment
Shenzhen Chuangzhi Guangdong Guangdong Establishment
68 Wholesale 100
Electrical Appliances Shenzhen Shenzhen or investment
Chongqing Konka Establishment
69 Chongqing Chongqing Research & experiment development 70 5
Optoelectronic Technology or investment
Guangdong Guangdong Computer telecommunications and other Establishment
70 Kowin Memory (Shenzhen) 100
Shenzhen Shenzhen electronic equipment manufacturing or investment
Computer telecommunications and other Establishment
71 Konka Xinyun Semiconductor Jiangsu Yancheng Jiangsu Yancheng 100
electronic equipment manufacturing or investment
Jiangkang (Shanghai) Establishment
72 Shanghai Shanghai Research & experiment development 51
Technology or investment
Establishment
73 Ningbo Kanghr Electrical Zhejiang Ningbo Zhejiang Ningbo Electrical machinery and equipment 60 or investment
1 61Shareholding percentage
Main place of (%) Acquisition
No. Subsidiary Place of registration Business nature
business method
Direct Indirect
Appliance manufacturing
Establishment
74 Suining Jiarun Property Sichuan Suining Sichuan Suining Real estate 100
or investment
Ecological protection and environmental Establishment
75 Yibin Kangrun Sichuan Yibin Sichuan Yibin 67
governance services or investment
Hainan Konka Material Establishment
76 Hainan Haikou Hainan Haikou Commercial services 100
Technology or investment
Jiangxi High Transparent Establishment
77 Jiangxi Jiujiang Jiangxi Jiujiang Manufacturing and processing 51
Substrate or investment
Computer telecommunications and other Establishment
78 Nantong Hongdin Jiangsu Nantong Jiangsu Nantong 100
electronic equipment manufacturing or investment
Establishment
79 Chuzhou Konka Anhui Chuzhou Anhui Chuzhou Manufacturing 94.9
or investment
Establishment
80 Konka Soft Electronic Sichuan Suining Sichuan Suining Manufacturing 97.5
or investment
Establishment
81 Konka Hongye Electronics Sichuan Suining Sichuan Suining Manufacturing 95.05
or investment
Wholesale of computers software and auxiliary Establishment
82 Kowin Memory (Hong Kong) China Hong Kong China Hong Kong 100
equipment or investment
Establishment
83 Konka Cross-border (Hebei) Hebei Handan Hebei Handan Wholesale 100
or investment
Establishment
84 Konka Huazhong Hunan Changsha Hunan Changsha Commercial services 100
or investment
Ecological protection and environmental Establishment
85 Yibin Kangrun Medical Sichuan Yibin Sichuan Yibin 63.65
governance services or investment
Manufacture of household cleaning and sanitary Establishment
86 Shanxi Konka Intelligent Shanxi Xi'an Shanxi Xi'an 51
electrical appliances or investment
Chongqing Xinyuan Science and technology promotion and Establishment
87 Chongqing Chongqing 75
Semiconductor application services or investment
1 62Shareholding percentage
Main place of (%) Acquisition
No. Subsidiary Place of registration Business nature
business method
Direct Indirect
Establishment
88 Anlu Konka Hubei Anlu Hubei Anlu Software and information technology services 100
or investment
Guangdong Guangdong Establishment
89 Kanghong Dongsheng Commercial services 95.09
Shenzhen Shenzhen or investment
Guizhou Qiannan Guizhou Qiannan
Guizhou Konka New Material Buyi and Miao Buyi and Miao Establishment
90 Manufacturing and processing 51
Technology Autonomous Autonomous or investment
Prefecture Prefecture
Establishment
91 Guangdong Xinwei Guangdong Lvfeng Guangdong Lvfeng Semiconductors 100
or investment
Guizhou Qiannan Guizhou Qiannan
Guizhou Kanggui Material Buyi and Miao Buyi and Miao Establishment
92 Manufacturing and processing 70
Technology Autonomous Autonomous or investment
Prefecture Prefecture
Establishment
93 Nantong Kanghai Jiangsu Nantong Jiangsu Nantong Real estate 51
or investment
Establishment
94 Chongqing Kangyiyun Chongqing Chongqing Real estate 80
or investment
Establishment
95 Jiangxi Konka High-tech Park Jiangxi Shangrao Jiangxi Shangrao Commercial services 100
or investment
Shangrao Konka Electronic Establishment
96 Jiangxi Shangrao Jiangxi Shangrao Research & experiment development 100
Technology Innovation or investment
Establishment
97 Guizhou Konka New Energy Guizhou Kaili Guizhou Kaili Manufacture of non-metallic mineral products 98
or investment
Establishment
98 Zhejiang Konka Electronic Zhejiang Shaoxing Zhejiang Shaoxing Research & experiment development 100
or investment
Zhejiang Konka Technology Establishment
99 Zhejiang Shaoxing Zhejiang Shaoxing Commercial services 51 49
Industry or investment
Establishment
100 Xi'an Konka Intelligent Shanxi Xi'an Shanxi Xi'an Wholesale 51
or investment
Establishment
101 Xi'an Konka Network Shanxi Xi'an Shanxi Xi'an Computer telecommunications and other 100
or investment
1 63Shareholding percentage
Main place of (%) Acquisition
No. Subsidiary Place of registration Business nature
business method
Direct Indirect
electronic equipment manufacturing
Xi'an Kanghong Technology Establishment
102 Shanxi Xi'an Shanxi Xi'an Commercial services 40 60
Industry or investment
Xi'an Konka Intelligent Establishment
103 Shanxi Xi'an Shanxi Xi'an Retail trade 100
Technology or investment
Establishment
104 Anhui Konka Low Carbon Anhui Ma'anshan Anhui Ma'anshan Wholesale 55
or investment
Guangdong Guangdong Establishment
105 Kanghong Xintong Commercial services 95.09049
Shenzhen Shenzhen or investment
Establishment
106 Songyang Industry Operation Zhejiang Lishui Zhejiang Lishui Software and information technology services 51
or investment
Guangdong Guangdong Computer telecommunications and other Establishment
107 Kangyan Technology 100
Shenzhen Shenzhen electronic equipment manufacturing or investment
Konka Photovoltaic Science and technology promotion and Establishment
108 Zhejiang Hangzhou Zhejiang Hangzhou 60
Technology application services or investment
Establishment
109 Songyang Konka Intelligent Zhejiang Lishui Zhejiang Lishui Wholesale 100
or investment
Electrical machinery and equipment Establishment
110 Konka North China Tianjin Tianjin 100
manufacturing or investment
Guangdong Guangdong Establishment
111 Digital Technology Software and information technology services 100
Shenzhen Shenzhen or investment
（2） Major non-wholly-owned subsidiaries
Dividends declared to be
Profit or loss attributable
Shareholding of minority distributed to minority Closing balance of minority
Subsidiary to minority shareholders
shareholders shareholders in the current shareholders' equities
in the current period
period
1 64Anhui Konka Electronic Co. Ltd. 22.00% 1640884.45 109418450.03
（3） Key financial data on major non-wholly-owned subsidiaries
Closing balance
Subsidiary
Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities
Anhui Konka Electronic Co.
2971965145.27848965358.813820930504.083103220127.80166769283.063269989410.86
Ltd.
(Continued)
Opening balance
Subsidiary
Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities
Anhui Konka Electronic Co.
1603653502.77871575618.362475229121.131774223005.73159000548.271933223554.00
Ltd.
(Continued)
Amount incurred in the current period
Subsidiary
Cash flows from operating
Operating income Net profit Total comprehensive income
activities
Anhui Konka Electronic Co. Ltd. 510624823.36 7458565.66 7458565.66 9930838.81
(Continued)
Amount incurred last period
Subsidiary
Cash flows from operating
Operating income Net profit Total comprehensive income
activities
1 65Amount incurred last period
Subsidiary
Cash flows from operating
Operating income Net profit Total comprehensive income
activities
Anhui Konka Electronic Co. Ltd. 972416661.43 -12062430.83 -12062430.83 6806364.98
1 662. Interests in joint ventures or associated enterprises
（1） Major joint ventures or associated enterprises
Shareholding Accounting
Name of the joint Main percentage (%) processing method
Place of Business
venture or associated place of for investment in
registration nature
enterprise business joint ventures or
Direct Indirect associated
enterprises
Dongfang Jiakang
No.1 (Zhuhai) Private Investment
Zhuhai Zhuhai 49.95 Equity method
Equity Investment management
Fund (LP)
Professional
Shenzhen Jielunte
Shenzhen Shenzhen machinery 42.79 Equity method
Technology Co. Ltd.manufacturing
（2） Key financial data on significant associated enterprises
Amount incurred at the end of the period/in the current
period
Item
Dongfang Jiakang No.1
Shenzhen Jielunte
(Zhuhai) Private Equity
Technology Co. Ltd.Investment Fund (LP)
Current assets 682532551.61 276265292.05
Non-current assets 375613432.02
Total assets 682532551.61 651878724.07
Current liabilities 10026785.45 283099134.56
Non-current liabilities 168822795.30
Total liabilities 10026785.45 451921929.86
Equities of minority shareholders 7252798.82
Equities attributable to shareholders of the
672505766.16192703995.39
parent company
Share of net assets calculated based on the
335916630.2082458039.63
shareholding
Adjustments
- Goodwill
- Internal unrealised profit
1 67Amount incurred at the end of the period/in the current
period
Item
Dongfang Jiakang No.1
Shenzhen Jielunte
(Zhuhai) Private Equity
Technology Co. Ltd.Investment Fund (LP)
- Others
Carrying value of equity investments in
335916630.2082458039.63
associated enterprises
Fair values of equity investments of joint
ventures with quoted prices
Operating income 165625501.64
Finance costs -34467.40 1873337.25
Income tax expense 4233127.86
Net profit 34467.40 -18219902.67
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income 34467.40 -18219902.67
Dividends received from associated
enterprises in the current year
(Continued)
Amount incurred at the beginning of the period/in last period
Item Dongfang Jiakang No.1
Shenzhen Jielunte
(Zhuhai) Private Equity
Technology Co. Ltd.Investment Fund (LP)
Current assets 686882241.74 274817240.18
Non-current assets 338361205.79
Total assets 686882241.74 613178445.97
Current liabilities 10026785.45 261433145.90
Non-current liabilities 133388974.62
Total liabilities 10026785.45 394822120.52
Equities of minority shareholders 9322847.51
Equities attributable to shareholders of the
676855456.29209033477.94
parent company
Share of net assets calculated based on the
338089300.4294917575.00
shareholding
1 68Amount incurred at the beginning of the period/in last period
Item Dongfang Jiakang No.1
Shenzhen Jielunte
(Zhuhai) Private Equity
Technology Co. Ltd.Investment Fund (LP)
Adjustments
- Goodwill
- Internal unrealised profit
- Others
Carrying value of equity investments in
338089300.4294917575.00
associated enterprises
Fair values of equity investments of joint
ventures with quoted prices
Operating income 168815683.51
Finance costs -284133.17 1539262.28
Income tax expense 2245248.55
Net profit 25641054.77 -13237135.87
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income 25641054.77 -13237135.87
Dividends received from associated
enterprises in the current year
（3） Combined financial data on insignificant joint ventures and associated
enterprises
Amount incurred at the end of Amount incurred at the
Item the period/in the current beginning of the period/in
period last period
Associated enterprise
Total carrying value of investment 5075226991.71 5133476987.87
The total of following items according to the
shareholding proportions
Net profit -31243007.66 -37153622.36
Other comprehensive income -83919.23
Total comprehensive income -31326926.89 -37153622.36
1 69X. Government grants
1. Liability items involving government subsidies
Amount Amount
Subsidies recognised as transferred Other
Related to
Account Opening increased in non-operating to other changes in Closing
assets/
title balance the current income in the incomes in the current balance
income
period current the current period
period period
Deferred Related to
425135237.9015638700.0018082830.6814000000.00408691107.22
revenue assets/income
2. Government subsidies recognised as profit and loss of the Reporting Period
Amount incurred in the current
Account title Amount incurred last period
period
Other income 56768387.57 137917215.41
XI. Risks Related to Financial Instruments
The Group's main financial instruments include borrowings accounts receivable accounts payable
trading financial assets and liabilities etc. Please refer to Note VI for detailed descriptions of
various financial instruments. The risks related to these financial instruments and the risk
management policies adopted by the Group to mitigate these risks are described below. The
management of the Group manages and monitors these risk exposures to ensure that these risks are
controlled within a limited scope.
1. Management objectives and policies for various risks
The Group's objective in engaging in the risk management is to achieve the proper balance
between the risks and benefits minimize the negative impact of these risks on the Company's
operating results and maximize the profits of shareholders and other equity investors. Based on
the risk management goal the basic strategy of the Company's risk management is determining
and analyzing the various risks faced by the Company setting up the bottom line of risk and
conducting appropriate risk management and timely supervising various risks in a reliable way
and controlling the risk within the range of limit.
（1） Market risk
1） Exchange rate risk
Foreign exchange risk refers to the risks that may lead to losses due to fluctuation in exchange rate.The foreign exchange risk borne by the Group is related to USD. Except the procurement and
sales in USD of the Company's subsidiaries Hong Kong Konka Hongdin Trading Chain
Kingdom Memory Technologies Hongjet and Jiali the Group's other primary business activities
are settled in RMB. The currency risk arising from the assets and liabilities of such balance in
USD may affect the Group's operating results. As of 30 June 2024 the Group's assets and
liabilities were mainly the balance in RMB except for the assets or liabilities of a balance in USD
as listed below.Item Closing balance Opening balance
Monetary assets 66195513.58 91184116.43
Accounts receivable 83486351.12 85032871.75
Other accounts receivable 108427213.73 110836591.33
1 70Item Closing balance Opening balance
Other payables 4820283.44 3453133.32
Accounts payable 33913641.95 4828295.25
The Group pays close attention to the impact of exchange rate changes on the Group's foreign
exchange risk and requires major companies in the Group that purchase and sell in foreign
currency to pay attention to the changes in foreign currency assets and liabilities manage the
Group's foreign currency net asset exposure in a unified way implement single currency
settlement and reduce the scale of foreign currency assets and liabilities so as to reduce foreign
exchange risk exposure.
2） Interest rate risk
The Group bears interest rate risk due to interest rate changes of interest-bearing financial assets
and liabilities. The Group's interest bearing financial assets are mainly bank deposits of which the
majority of the variable interest rates are short-term in nature while the interest bearing financial
liabilities are mainly bank borrowings and corporate bonds. The Group's long-term bank
borrowings and corporate bonds are at fixed interest rates. The risk of cash flow changes of
financial instruments caused by interest rate changes is mainly related to short-term bank
borrowings with floating interest rates. The Group's policy is to maintain the floating interest rates
of such borrowings to eliminate the fair value risk of interest rate changes. As of 30 June 2024 the
balance of such short-term borrowings was RMB6510087630.95.
（2） Credit risk
As of 30 June 2024 the maximum credit risk exposure that may cause financial losses to the
Group mainly came from losses generated from the Group's financial assets due to failure of the
other party to a contract to perform its obligations and the financial guarantee undertaken by the
Group including:
The carrying amount of financial assets recognised in the consolidated balance sheet; for financial
instruments measured at fair value the book value reflects their risk exposure but not the
maximum risk exposure and the maximum risk exposure will change with the change of future
fair value.In order to reduce credit risk the Group has set up a group to determine the credit limit conduct
credit approval and implement other monitoring procedures to ensure that necessary measures are
taken to recover overdue claims. In addition the Group reviews the recovery of each single
receivable on each balance sheet date to ensure that sufficient provision for bad debts is made for
the unrecoverable amount. Therefore the Group's management believes that the Group's credit
risk has been greatly reduced.The Group's working capital is deposited in banks with a high credit rating so the credit risk of
working capital is low.The Group has adopted necessary policies to ensure that all customers have good credit records.Except for the top five customers in terms of the amount of accounts receivable the Group has no
other major credit concentration risks. For the financial assets of the Group that have been
individually impaired please refer to 4. Accounts receivable and 7. Other receivables in Note VI.
（3） Liquidity risk
Liquidity risk refers to the risk that the Group is unable to fulfill its financial obligations on the
due date. The Group manages liquidity risk in the method of ensuring that there is sufficient
liquidity to fulfill debt obligations without causing unacceptable loss or damage to the Group's
reputation. In order to mitigate the liquidity risk the Group's management has carried out a
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
1 71maturity period of the undiscounted remaining contractual obligations is as follows:
1 72Amount as of 30 June 2024:
Item Within one year One to two years Two to five years Over five years Total
Financial assets
Monetary assets 5514370579.43 5514370579.43
Held-for-trading financial assets 294937209.31 294937209.31
Notes receivable 301987637.11 301987637.11
Accounts receivable 1361996890.11 294570006.54 156534862.43 43859681.15 1856961440.23
Other accounts receivable 80785644.43 64298860.97 684427848.89 16280.00 829528634.29
Other current assets 2361815002.60 2361815002.60
Financial liabilities
Short-term loans 6510087630.95 6510087630.95
Notes payable 981928381.95 981928381.95
Accounts payable 2320012296.29 390501476.73 217357907.56 12680080.14 2940551760.72
Other payables 1034749812.17 489694436.35 168672631.73 69249298.97 1762366179.22
Payroll payable 198487964.48 198487964.48
Non-current liabilities due within
3600939407.573600939407.57
one year
Long-term loans 4232479248.20 1961154263.34 1012154826.09 7205788337.63
Bonds payable 2468093333.41 2328815379.42 4796908712.83
Long-term payables 3734931.39 1222415.19 4957346.58
1 732. Sensitivity analysis
The Group adopts sensitivity analysis technology to analyze the possible impact of reasonable and
possible changes of risk variables on current profits/losses or shareholders' equity. As any risk
variable rarely changes in isolation and the correlation between variables will have a significant
effect on the final impact amount of the change of a risk variable the following content is based
on the assumption that the change of each variable is independent.
（1） Sensitivity analysis of foreign exchange risk
Assumption for the sensitivity of foreign exchange risk: All net investment hedging and cash flow
hedging of overseas operations are highly effective.On the basis of the above assumption under the condition that other variables remain unchanged
the impact of reasonable changes in the exchange rate on current profits/losses and equity after tax
is as follows:
H1 2024 H1 2023
Exchange
Item rate Impact on Impact on
fluctuations Impact on net Impact on net shareholders' shareholders'
profit profit
equity equity
Appreciation
of 1%
USD 13258840.79 8898925.74 22249707.57 17750467.03
against
RMB
Depreciation
of 1%
USD -13258840.79 -8898925.74 -22249707.57 -17750467.03
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:
H1 2024 H1 2023
Interest
rate
Item
fluctuation Impact on Impact on Impact on net Impact on net
s shareholders' shareholders' profit profit
equity equity
Borrowings at
floating Up 0.5% -24626858.36 -23932778.41 -25773357.94 -24732737.56
interest rates
Borrowings at
floating Down 0.5% 24626858.36 23932778.41 25773357.94 24732737.56
interest rates
1 74XII. Disclosure of Fair Value
1. Closing fair value of assets and liabilities measured at fair value
C lo s ing fai r v alue
Item
Level-1 fair value Level-2 fair value Level-3 fair value
Total
measurement measurement measurement
I. Continuous fair value measurement
(I) Held-for-trading financial assets 294937209.31 294937209.31
1. Financial assets measured at fair value through profit and loss for
294937209.31294937209.31
the Reporting Period
(II) Accounts receivable financing 203279738.30 203279738.30
(III) Other debt investments
(IV) Other equity instruments investments 23841337.16 23841337.16
(V) Investment properties
(VI) Other non-current financial assets 1985908473.73 1985908473.73
Total assets continuously measured at fair value 203279738.30 2304687020.20 2507966758.50
Total liabilities continuously measured at fair value
II. Non-continuous fair value measurement
Total assets not continuously measured at fair value
Total liabilities not continuously measured at fair value
1 752. Basis for determining the market price of continuous and non-continuous level-1 fair value
measurement projects
The first level of the input is an unadjusted quoted price in an active market for the same assets and liabilities
available on the measurement date.
3. Qualitative and quantitative data on valuation techniques and important parameters adopted for
continuous and non-continuous level-2 fair value measurement projects
The Level 2 fair value measurement of input value at Level 2 is the input value observable directly or
indirectly of relevant assets or liabilities exclusive of input value at Level 1.
4. Qualitative and quantitative data on valuation techniques and important parameters adopted for
continuous and non-continuous level-3 fair value measurement projects
The third level of the input is the unobservable input of related assets and liabilities.XIII. Related Party and Related Party Transactions
1. Related party relationship
（1） Parent company of the Company
Shareholding Voting right
percentage of percentage of the
Name of the parent Place of Registered
Business nature the parent parent company
company registration capital
company in the in the Company
Company (%) (%)
Tourism real estate RMB12
OCT Group Shenzhen 29.999997 29.999997
electronics industry billion
The ultimate controller of the Company is State-owned Assets Supervisor Commission of the State Council.
（2） Subsidiaries of the Company
Please refer to note IX-1. (1) Subsidiaries for the information of subsidiaries.
（3） Joint ventures and associated enterprises of the Company
Please refer to Note IX-2. (1) Significant joint ventures and associated enterprises for details of significant joint
ventures or associated enterprises of the Company.Information on other joint ventures or associated enterprises having connected transactions with the Company in
the current period or forming balance due to connected transactions made in previous period:
176Name Relationship with the Company
Anhui Kaikai Shijie E-commerce Co. Ltd. Associated enterprise
Anhui Kangfu New Energy Co. Ltd. Associated enterprise
Anhui Kangta Supply Chain Management Co. Ltd. Associated enterprise
Chuzhou Kangxin Health Industry Development Co. Ltd. Associated enterprise
Chutian Dragon Co. Ltd. Associated enterprise
Orient Excellent (Zhuhai) Asset Management Co. Ltd. Associated enterprise
Dongguan Kangjia New Materials Technology Co. Ltd. Associated enterprise
Dongguan Konka Smart Electronic Technology Co. Ltd. Associated enterprise
Dongguan Guankang Yuhong Investment Co. Ltd. Associated enterprise
Feidi Technology (Shenzhen) Co. Ltd. Associated enterprise
Guangdong Kangyuan Semiconductor Co. Ltd. Associated enterprise
Hefei KONSEMI Storage Technology Co. Ltd. Associated enterprise
Henan Kangfei Intelligent Electric Appliance Co. Ltd. Associated enterprise
Kangkong Venture Capital (Shenzhen) Co. Ltd. Associated enterprise
Nantong Kangjian Technology Industrial Park Operations and
Associated enterprise
Management Co. Ltd.Puchuang Jiakang Technology Co Ltd. Associated enterprise
Shandong Kangfei Intelligent Electrical Appliances Co. Ltd. Associated enterprise
Shenzhen Aimijiakang Technology Co. Ltd. Associated enterprise
Shenzhen Kanghongxing Intelligent Technology Co. Ltd. Associated enterprise
Shenzhen Kangpeng Digital Technology Co. Ltd. Associated enterprise
177Name Relationship with the Company
Shenzhen KONKA E-display Co. Ltd. Associated enterprise
Zhejiang Kangying Semiconductor Technology Co. Ltd. (formerly:
Associated enterprise
Shenzhen Kangying Semiconductor Technology Co. Ltd.)
Shenzhen Morsemi Semiconductor Technology Co. Ltd. Associated enterprise
Shenzhen Kangjia Jiapin Intelligent Electrical Apparatus Technology Co.Associated enterprise
Ltd.Shenzhen Kangxi Technology Innovation Development Co. Ltd. Associated enterprise
Shenzhen RF-Llink Technology Co. Ltd. Associated enterprise
Shenzhen Yaode Technology Co. Ltd. Associated enterprise
Shenzhen Zhongkang Beidou Technology Co. Ltd. Associated enterprise
Sichuan Chengrui Real Estate Co. Ltd. Associated enterprise
KK Smartech Limited Associated enterprise
Yantai Kangyun Industrial Development Co. Ltd. Associated enterprise
Yancheng Kangyan Information Industry Investment Partnership (Limited
Associated enterprise
Partnership)
Yibin Kanghui Electronic Information Industry Equity Investment
Associated enterprise
Partnership (Limited Partnership)
E3info (Hainan) Technology Co. Ltd. Associated enterprise
Shandong Econ Technology Co. Ltd. Associated enterprise
Chongqing Kangjian Photoelectric Technology Co. Ltd. Associated enterprise
Chongqing Kangxin Equity Investment Fund Limited Partnership (Limited
Associated enterprise
Partnership)
Chongqing Kangyiqing Technology Co. Ltd. Associated enterprise
178Name Relationship with the Company
Sichuan Hongxinchen Real Estate Development Co. Ltd. Associated enterprise
Wuhan Kangtang Information Technology Co. Ltd. Associated enterprise
Foshan Zhujiang Media Creative Park Cultural Development Co. Ltd. Associated enterprise
Panxu Intelligence Co. Ltd. Associated enterprise
（4） Other related parties
Names of other related parties Relationship with the Company
HOHOELECTRICAL&FURNITURECO.LIMITED Minority shareholder of subsidiary
Beijing Xuri Shengxing Technology Co. Ltd. Minority shareholder of subsidiary
Chuzhou Hanshang Electric Appliance Co. Ltd. Minority shareholder of subsidiary
Korea Electric Group Co. Ltd. Minority shareholder of subsidiary
Hu Zehong Minority shareholder of subsidiary
Shenzhen New Journey Energy Conservation and Environmental
Minority shareholder of subsidiary
Protection Service Co. Ltd.Central Enterprises Poverty Alleviation (Jiangxi) Industrial Fund
Minority shareholder of subsidiary
Partnership (L.P.)
Chongqing Liangshan Industrial Investment Co. Ltd. Minority shareholder of subsidiary
Zhu Xinming Minority shareholder of subsidiary
AUJET INDUSTRY LIMITED Minority shareholder of subsidiary
Chuzhou State-owned Assets Management Co. Ltd. Minority shareholder of subsidiary
Shenzhen Unifortune Supply Chain Management Co. Ltd. Minority shareholder of subsidiary
Guizhou Huajinrun Technology Co. Ltd. Minority shareholder of subsidiary
179Names of other related parties Relationship with the Company
Shenzhen Henglongtong Technology Co. Ltd. Minority shareholder of subsidiary
Suiyong Rongxin Asset Management Co. Ltd. Minority shareholder of subsidiary
Shenzhen Qianhai Datang Technology Co. Ltd. Minority shareholder of subsidiary
Wu Guoren Minority shareholder of subsidiary
Xiao Yongsong Minority shareholder of subsidiary
Hu Zehong Minority shareholder of subsidiary
Jiangsu Korea Electric Group Co. Ltd. Minority shareholder of subsidiary
The company controlled by the minority shareholders
Jiangxi Meiji Enterprise Co. Ltd.of the subsidiary
The company controlled by the minority shareholders
Jiangxi Xinzixin Real Estate Co. Ltd.of the subsidiary
Close family members of minority shareholders of the
Dai Rongxing
subsidiary
Zhejiang Donghong Asset Management Co. Ltd. Subsidiary of associated enterprise
AMobile Intelligent Corp. Ltd. Subsidiary of associated enterprise
Yantai Kangyue Investment Co. Ltd. Subsidiary of associated enterprise
Chongqing Lanlv Moma Real Estate Development Co. Ltd. Subsidiary of associated enterprise
Anhui Jiasen Precision Technology Co. Ltd. Subsidiary of associated enterprise
Chuzhou Jielunte Mould Plastic Co. Ltd. Subsidiary of associated enterprise
Guangdong Jielunte Technology Co. Ltd. Subsidiary of associated enterprise
Kunshan Jielunte Mould Plastic Co. Ltd. Subsidiary of associated enterprise
Dongguan Kangjie Plastic Mould Co. Ltd. Subsidiary of associated enterprise
180Names of other related parties Relationship with the Company
Dongguan Jielunte Plastic Mould Technology Co. Ltd. Subsidiary of associated enterprise
Dongguan Xutongda Mould Plastic Co. Ltd. Subsidiary of associated enterprise
Shenzhen Kangying Storage Technology Co. Ltd. Subsidiary of associated enterprise
Shenzhen E-Display Commercial Display Service Co. Ltd. Subsidiary of associated enterprise
Konka E-Display (Hong Kong) Co. Ltd. Subsidiary of associated enterprise
Guangdong KONKA E-display Co. Ltd. Subsidiary of associated enterprise
Shanghai Jiyi Environmental Technology Co. Ltd. Subsidiary of associated enterprise
2. Related-party transactions
（1） Related party transactions involving the purchase and sale of goods and the supply and
acceptance of services
1） Purchasing goods/receiving services
Amount incurred in Amount incurred last
Related party Related party transaction
the current period period
Chuzhou Hanshang Electric Appliance Co. Ltd. Purchase of goods 114880089.88 186735395.72
Puchuang Jiakang Technology Co Ltd. Purchase of goods 37713014.15 82483825.77
OCT Group Co. Ltd. and its subsidiaries and Purchase of goods and
26734696.1719556218.59
associates services
Shenzhen Jielunte Technology Co. Ltd. and its
Purchase of goods 20726583.10 17989178.13
subsidiaries
Korea Electric Group Co. Ltd. and its subsidiaries Purchase of goods 12003676.60 13962407.67
Shenzhen KONKA E-display Co. Ltd. and its
Purchase of goods 4407128.66 10289325.37
subsidiaries
Dongguan Kangjia New Materials Technology Co.Purchase of goods 3423338.73 7656559.11
Ltd..
181Amount incurred in Amount incurred last
Related party Related party transaction
the current period period
Dongguan Konka Smart Electronic Technology Co. Purchase of goods and
828076.335303236.99
Ltd. services
HOHOELECTRICAL&FURNITURECO.LIMITED Purchase of goods 26341.27 5279694.58
Anhui Kaikai Shijie E-commerce Co. Ltd. and its
Purchase of goods 14519171.29
subsidiaries
KK Smartech Limited Purchase of goods 7026770.10
Zhejiang Kangying Semiconductor Technology Co.Ltd. and its subsidiaries (formerly: Shenzhen
Purchase of goods 4317763.40
Kangying Semiconductor Technology Co. Ltd.) and
its subsidiaries
Purchase of goods and
Subtotal of other related parties 23017795.17 6384913.67
services
（2） Information of sales of goods and provision of labour service
Related party transaction Amount incurred in the Amount incurred last
Related party
current period period
Sales of goods and
Chuzhou Hanshang Electric Appliance Co. Ltd. 182689651.25 87808617.20
provision of labour service
OCT Group Co. Ltd. and its subsidiaries and Sales of goods and
37055797.3731848071.22
associates provision of labour service
Sales of goods and
Korea Electric Group Co. Ltd. and its subsidiaries 34500419.06 61575942.67
provision of labour service
Shenzhen KONKA E-display Co. Ltd. and its Sales of goods and
32568363.609771563.23
subsidiaries provision of labour service
Shenzhen Jielunte Technology Co. Ltd. and its Sales of goods and
10781688.8631298689.17
subsidiaries and associates provision of labour service
Dongguan Konka Smart Electronic Technology Sales of goods and
3647313.535049897.52
Co. Ltd. provision of labour service
Zhejiang Kangying Semiconductor Technology
Co. Ltd. and its subsidiaries (formerly: Shenzhen Sales of goods and
2427251.905789685.32
Kangying Semiconductor Technology Co. Ltd.) provision of labour service
and its subsidiaries
Shenzhen Aimijiakang Technology Co. Ltd. Sales of goods 633048.19 1453563.03
182Related party transaction Amount incurred in the Amount incurred last
Related party
current period period
Sales of goods and
Hefei KONSEMI Storage Technology Co. Ltd. 19420.70 8004252.90
provision of labour service
E3info (Hainan) Technology Co. Ltd. and its Sales of goods and
1714.009168670.42
subsidiaries provision of labour service
Sales of goods and
Subtotal of other related parties 5085298.73 51872181.94
provision of labour service
（3） Related party leases
Lease situation
Type of leased Lease fee recognised in Lease fee recognised last
Lessor Lessee
assets the current period period
Commercial
OCT Group Co. Ltd. and its Konka Ventures Development
residences and 16202959.98 14099760.00
subsidiaries (Shenzhen) Co. Ltd.office buildings
Dongguan Guankang
Dongguan Konka
Yuhong Investment Co. Factory 6841431.94 22799157.95
Electronic Co. Ltd.Ltd.Commercial
OCT Group Co. Ltd. and its
Konka Group Co. Ltd. residences and 351831.90
subsidiaries
office buildings
（4） Related party guarantees
1） The Company was guarantor
Contracted Actual Whether
guarantee guarantee Start date of Expiry date of the
Secured party Currency
amount amount guarantee guarantee guarantee is
(RMB'0000) (RMB'0000) completed
15 January 14 January
Boluo Precision 4000.00 1800.00 CNY No
20242025
25 August 25 August
Boluo Precision 4500.00 2773.86 CNY No
20232026
29 January 29 January
Boluo Precision 2000.00 1215.07 CNY No
20242025
31 January
Konka Circuit 10000.00 3735.16 CNY 19 July 2023 No
2027
22 December 22 December
Konka Circuit 5000.00 889.04 CNY No
20232024
183Contracted Actual Whether
guarantee guarantee Start date of Expiry date of the
Secured party Currency
amount amount guarantee guarantee guarantee is
(RMB'0000) (RMB'0000) completed
19 October 31 December
Anhui Tongchuang 10000.00 7840.00 CNY No
20232024
Anhui Tongchuang 5000.00 4980.00 CNY 20 June 2024 29 May 2025 No
20 November
Anhui Tongchuang 3000.00 2900.00 CNY 19 May 2025 No
2023
6 December
Anhui Tongchuang 5000.00 980.00 CNY 20 May 2024 No
2024
Konka Xinyun
6000.00 2800.00 CNY 26 May 2024 21 March 2026 No
Semiconductor
Konka Xinyun
8277.66 4281.25 CNY 12 July 2021 11 July 2022 No
Semiconductor
13 December 13 December
Chongqing Konka 38000.00 13730.92 CNY No
20222037
Electronics Technology 8500.00 3222.64 CNY 2 April 2024 22 March 2025 No
26 September 11 August
Electronics Technology 50000.00 50000.00 CNY No
20232024
Dongguan Konka 80000.00 33091.04 CNY 23 June 2021 7 May 2031 No
Telecommunication
7500.00 1761.23 CNY 23 July 2023 23 July 2024 No
Technology
Sichuan Konka 4000.00 2800.00 CNY 23 May 2023 26 April 2026 No
10 November 10 November
Mobile Interconnection 7000.00 1870.12 CNY No
20232024
Yibin Smart 980.00 980.00 CNY 27 March 2024 19 March 2025 No
Xi'an Kanghong Technology 31 December
30000.00 8145.16 CNY 26 May 2023 No
Industry 2032
24 January 7 November
Konka Hongye Electronics 19010.00 5079.56 CNY No
20242038
19 December 19 December
Konka Soft Electronic 975.00 34.55 CNY No
20222023
6000.00 1881.83 CNY 2 March 2023 27 July 2024 No
Ningbo Kanghr Electrical
184Contracted Actual Whether
guarantee guarantee Start date of Expiry date of the
Secured party Currency
amount amount guarantee guarantee guarantee is
(RMB'0000) (RMB'0000) completed
Appliance
Ningbo Kanghr Electrical
6000.00 3000.00 CNY 13 July 2023 12 July 2024 No
Appliance
30 January 30 January
Frestec Smart Home 10200.00 2652.00 CNY No
20242027
15 August 14 August
Jiangxi Konka 6000.00 1400.00 CNY No
20232024
13 November 31 December
Yibin Kangrun 10000.00 10000.00 CNY No
20202024
31 August 31 August
Anhui Konka 5500.00 4820.76 CNY No
20232024
22 September 21 September
Anhui Konka 18000.00 5560.67 CNY No
20232024
10 August
Anhui Konka 10215.95 8021.11 CNY 15 July 2031 No
2021
29 October 26 October
Anhui Konka 7000.00 4000.00 CNY No
20212026
24 October 26 October
Anhui Konka 7000.00 4000.00 CNY No
20222026
19 September 18 September
Anhui Konka 7000.00 6000.00 CNY No
20222023
Anhui Konka 5000.00 4843.82 CNY 25 June 2023 24 June 2028 No
Shandong Econ Technology 30 September 29 September
1623.89 CNY No
Co. Ltd. 2022 2024
Shandong Econ Technology 23 November
2748.12 177.92 CNY 23 May 2024 No
Co. Ltd. 2022
Shandong Econ Technology
1498.97 1498.97 CNY 22 May 2023 21 May 2024 No
Co. Ltd.Shandong Econ Technology
4996.58 4388.00 CNY 5 July 2023 21 May 2024 No
Co. Ltd.Shandong Econ Technology
2498.29 2435.11 CNY 19 July 2023 18 July 2024 No
Co. Ltd.
185Contracted Actual Whether
guarantee guarantee Start date of Expiry date of the
Secured party Currency
amount amount guarantee guarantee guarantee is
(RMB'0000) (RMB'0000) completed
Shandong Econ Technology 28 August
999.32 847.42 CNY 11 June 2024 No
Co. Ltd. 2023
Shandong Econ Technology 29 December 28 December
1374.06 1374.06 CNY No
Co. Ltd. 2023 2024
Shandong Econ Technology 28 December 27 December
2498.29 2192.05 CNY No
Co. Ltd. 2023 2024
Shandong Econ Technology 6 February 5 February
124.91 124.91 CNY No
Co. Ltd. 2024 2025
Shandong Econ Technology 14 December
4489.43 3641.50 CNY 1 March 2024 No
Co. Ltd. 2024
Shandong Econ Technology
499.66 499.66 CNY 30 April 2024 23 April 2025 No
Co. Ltd.
8 September 8 September
OCT Group 60000.00 60000.00 CNY No
20222025
18 October 18 October
OCT Group 60000.00 60000.00 CNY No
20222025
29 January 29 January
OCT Group 150000.00 150000.00 CNY No
20242027
OCT Group 80000.00 80000.00 CNY 18 March 2024 18 March 2027 No
22 September 22 September
OCT Group 50000.00 50000.00 CNY No
20232026
13 December 13 December
OCT Group 50000.00 48500.00 CNY No
20232026
OCT Group 50000.00 50000.00 CNY 26 March 2024 26 March 2027 No
OCT Group 60000.00 60000.00 CNY 25 June 2024 25 June 2026 No
2） As the secured party
Guarantee Whether the
Start date of Expiry date of
Guarantor amount Currency guarantee is
guarantee guarantee
(RMB'0000) completed
186Guarantee Whether the
Start date of Expiry date of
Guarantor amount Currency guarantee is
guarantee guarantee
(RMB'0000) completed
Konka Circuit 8200.00 CNY 5 February 2024 4 February 2025 No
Suining Konka Industrial Park 32800.00 CNY 5 February 2024 4 February 2025 No
OCT Group 80000.00 CNY 9 July 2021 9 July 2024 No
8 September 8 September
OCT Group 60000.00 CNY No
20222025
18 October
OCT Group 60000.00 CNY 18 October 2022 No
2025
OCT Group 120000.00 CNY 14 July 2022 14 July 2025 No
OCT Group 49250.00 CNY 23 August 2022 22 August 2025 No
22 December 22 December
OCT Group 23000.00 CNY No
20222025
OCT Group 56000.00 CNY 18 January 2023 18 January 2026 No
22 September 22 September
OCT Group 50000.00 CNY No
20232026
13 December 20 December
OCT Group 48500.00 CNY No
20232026
OCT Group 50000.00 CNY 26 March 2024 26 March 2027 No
OCT Group 60000.00 CNY 25 June 2024 25 June 2026 No
OCT Group 150000.00 CNY 29 January 2024 29 January 2027 No
OCT Group 80000.00 CNY 18 March 2024 18 March 2027 No
Jiangxi Xinzixin Real Estate Co. Ltd. 686.00 CNY 15 August 2023 14 August 2024 No
13 November 31 December
Shandong Econ Technology Co. Ltd. 3300.00 CNY No
20202024
Chuzhou State-owned Assets
1060.57 CNY 31 August 2023 31 August 2024 No
Management Co. Ltd.Chuzhou State-owned Assets 22 September 21 September
1223.35 CNY No
Management Co. Ltd. 2023 2024
1764.64 CNY 10 August 2021 15 July 2031 No
Chuzhou State-owned Assets
187Guarantee Whether the
Start date of Expiry date of
Guarantor amount Currency guarantee is
guarantee guarantee
(RMB'0000) completed
Management Co. Ltd.Chuzhou State-owned Assets 26 October
880.00 CNY 29 October 2021 No
Management Co. Ltd. 2026
Chuzhou State-owned Assets 26 October
880.00 CNY 24 October 2022 No
Management Co. Ltd. 2026
Chuzhou State-owned Assets 19 September 18 September
1320.00 CNY No
Management Co. Ltd. 2022 2023
Chuzhou State-owned Assets
1065.64 CNY 25 June 2023 24 June 2028 No
Management Co. Ltd.
31 December 31 December
Wu Guoren 875.00 USD No
20192024
31 December 31 December
Wu Guoren 2425.00 USD No
20192024
31 December 31 December
Xiao Yongsong 840.00 USD No
20192024
31 December 31 December
Xiao Yongsong 2328.00 USD No
20192024
Shenzhen Unifortune Supply Chain 31 December
1391.60 USD 21 June 2021 No
Management Co. Ltd. 2022
Shenzhen Unifortune Supply Chain 31 December
867.30 USD 21 June 2021 No
Management Co. Ltd. 2022
31 December
Guizhou Huajinrun Technology Co. Ltd. 381.15 USD 1 January 2022 No
2025
31 December
Guizhou Huajinrun Technology Co. Ltd. 157.50 USD 1 January 2022 No
2025
Shenzhen Henglongtong Technology 31 December
241.40 USD 1 January 2022 No
Co. Ltd. 2025
Shenzhen Henglongtong Technology 31 December
99.75 USD 1 January 2022 No
Co. Ltd. 2025
10 November 31 December
AUJET INDUSTRY LIMITED 3227.63 USD No
20212023
188Guarantee Whether the
Start date of Expiry date of
Guarantor amount Currency guarantee is
guarantee guarantee
(RMB'0000) completed
10 November 31 December
AUJET INDUSTRY LIMITED 89.18 USD No
20212023
31 December
AUJET INDUSTRY LIMITED 1029.00 USD 20 July 2020 No
2023
14 October
Zhu Xinming 12446.00 CNY 15 October 2022 No
2023
31 December
Zhu Xinming 3399.49 CNY 1 January 2023 No
2023
19 February 18 February
Zhu Xinming 13249.19 CNY No
20232024
28 February
Zhu Xinming 6860.00 CNY 1 March 2023 No
2024
Zhu Xinming 2330.54 CNY 9 March 2023 8 March 2024 No
30 September
Zhu Xinming 2156.00 CNY 1 April 2023 No
2023
31 December
Zhu Xinming 443.45 CNY 13 January 2023 No
2023
31 December
Zhu Xinming 44.05 CNY 30 March 2023 No
2023
31 December
Zhu Xinming 443.45 CNY 14 April 2023 No
2023
31 December
Zhu Xinming 44.05 CNY 30 June 2023 No
2023
31 December
Zhu Xinming 443.45 CNY 14 July 2023 No
2023
31 December
Zhu Xinming 44.05 CNY 11 October 2023 No
2023
31 December
Zhu Xinming 149.45 CNY 13 October 2023 No
2023
29 December 31 December
Zhu Xinming 44.05 CNY No
20232023
28 February 27 February
Zhu Xinming 490.00 CNY No
20232024
31 December
Zhu Xinming 5109.05 CNY 1 January 2023 No
2023
31 December
Zhu Xinming 252.63 CNY 13 January 2023 No
2023
31 December
Zhu Xinming 101.77 CNY 13 January 2023 No
2023
189Guarantee Whether the
Start date of Expiry date of
Guarantor amount Currency guarantee is
guarantee guarantee
(RMB'0000) completed
31 December
Zhu Xinming 203.63 CNY 14 April 2023 No
2023
31 December
Zhu Xinming 1862.90 CNY 1 January 2023 No
2023
17 February 31 December
Zhu Xinming 223.85 CNY No
20232023
31 December
Zhu Xinming 93.12 CNY 8 March 2023 No
2023
31 December
Zhu Xinming 101.35 CNY 19 May 2023 No
2023
31 December
Zhu Xinming 93.12 CNY 8 June 2023 No
2023
8 September 31 December
Zhu Xinming 93.12 CNY No
20232023
7 December 31 December
Zhu Xinming 62.25 CNY No
20232023
Jiangxi Konka 13431.31 CNY 15 June 2023 8 March 2027 No
Jiangxi High Transparent Substrate 38045.57 CNY 15 June 2023 19 March 2027 No
Jiangxi High Transparent Substrate 258.80 CNY 28 April 2024 6 March 2030 No
31 December
Xinfeng Microcrystalline 34475.18 CNY 15 June 2023 No
2025
31 December
Hu Zehong Liang Ruiling Dai Yaojin 2205.00 CNY 1 July 2018 No
2025
31 December
Hu Zehong Liang Ruiling Dai Yaojin 4899.02 CNY 1 July 2018 No
2025
31 December
XingDa HongYe 6591.25 CNY 1 January 2022 No
2026
31 December
XingDa HongYe 5366.40 CNY 1 January 2022 No
2026
31 December
XingDa HongYe 3124.68 CNY 1 January 2022 No
2026
Suiyong Rongxin Asset Management
2450.00 CNY 1 January 2018 30 June 2024 No
Co. Ltd.Suiyong Rongxin Asset Management 31 December
2842.00 CNY 1 January 2018 No
Co. Ltd. 2024
31 December
Shenzhen Henglongtong Technology 735.00 CNY 1 January 2022 No
2025
Co. Ltd. Guizhou Huajinrun
190Guarantee Whether the
Start date of Expiry date of
Guarantor amount Currency guarantee is
guarantee guarantee
(RMB'0000) completed
Technology Co. Ltd. Huaying Gaokede
Electronics Technology Co. Ltd.Huaying Gaokelong Electronics
Technology Co. Ltd. Shenzhen Baili
Yongxing Technology Co. Ltd.Shenzhen Henglongtong Technology
Co. Ltd. Guizhou Huajinrun
Technology Co. Ltd. Huaying Gaokede
31 December
Electronics Technology Co. Ltd. 488.37 CNY 1 January 2022 No
2025
Huaying Gaokelong Electronics
Technology Co. Ltd. Shenzhen Baili
Yongxing Technology Co. Ltd.Shenzhen Henglongtong Technology
Co. Ltd. Guizhou Huajinrun
Technology Co. Ltd. Huaying Gaokede
31 December
Electronics Technology Co. Ltd. 552.72 CNY 1 January 2022 No
2025
Huaying Gaokelong Electronics
Technology Co. Ltd. Shenzhen Baili
Yongxing Technology Co. Ltd.Chuzhou Hanshang Electric Appliance
4533.96 CNY 20 May 2021 19 May 2024 No
Co. Ltd.Shenzhen Qianhai Datang Technology 17 November 16 November
441.00 CNY No
Co. Ltd. 2023 2026
15 December 5 November
Konka Ventures 1322.54 CNY No
20212022
（5） Loans from/to related parties
Amount
Related party Currency Start date Maturity
(RMB'0000)
Borrowing:
OCT Group 81091.00 CNY 10 January 2022 9 January 2025
OCT Group 50000.00 CNY 19 May 2022 18 May 2025
191Amount
Related party Currency Start date Maturity
(RMB'0000)
OCT Group 70000.00 CNY 26 May 2022 25 May 2025
Chuzhou Hanshang Electric Appliance Co.
12862.50 CNY 1 January 2024 31 December 2024
Ltd.Chuzhou Hanshang Electric Appliance Co.
2450.00 CNY 2 August 2023 2 August 2024
Ltd.Chuzhou Hanshang Electric Appliance Co.
980.00 CNY 14 February 2024 13 February 2025
Ltd.Shandong Econ Technology Co. Ltd. 1914.00 CNY 20 March 2024 19 March 2025
Kangkong Venture Capital (Shenzhen) Co.
245.00 CNY 21 July 2022 18 July 2024
Ltd.Beijing Xuri Shengxing Technology Co.
228.67 CNY 5 December 2022 30 November 2024
Ltd.Total 219771.17
Lending:
Dongguan Guankang Yuhong Investment
19600.00 CNY 25 September 2023 24 September 2024
Co. Ltd.Chuzhou Kangxin Health Industry
38974.77 CNY 22 December 2023 21 December 2024
Development Co. Ltd.Chuzhou Kangxin Health Industry
562.97 CNY 22 December 2023 21 December 2024
Development Co. Ltd.Sichuan Chengrui Real Estate Co. Ltd. 14724.50 CNY 21 January 2022 15 April 2025
Yantai Kangyue Investment Co. Ltd. 12852.70 CNY 16 December 2020 5 November 2022
Yantai Kangyun Industrial Development
22600.00 CNY 31 March 2024 31 March 2025
Co. Ltd.Chongqing Lanlv Moma Real Estate
18843.00 CNY 25 November 2020 24 November 2023
Development Co. Ltd.
192Amount
Related party Currency Start date Maturity
(RMB'0000)
Sichuan Hongxinchen Real Estate
19879.55 CNY 15 September 2022 27 February 2025
Development Co. Ltd.Shandong Econ Technology Co. Ltd. 18315.11 CNY 1 January 2024 20 December 2024
Shandong Econ Technology Co. Ltd. 4996.58 CNY 21 December 2023 20 December 2024
Total 171349.18
（6） Asset transfer and debt restructuring of related parties
Amount incurred in the
Related party Related party transaction Amount incurred last period
current period
OCT Group Co. Ltd. and its Transfer of patents software
subsidiaries and associates copyrights and trademarks
Total
（7） Remuneration for key management personnel
The current period
Project Last period (RMB'0000)
(RMB'0000)
Total remuneration 316.25 549.95
3. Balance of amount receivable and payable by related parties
（1） Receivables
Closing balance Opening balance
Related party Provision for bad Provision for bad
Book balance Book balance
debts debts
Accounts receivable:
Shenzhen Yaode
Technology Co. Ltd. and 146468551.71 146468551.71 145562210.29 145562210.29
its subsidiaries
HOHOELECTRICAL&FU
124921878.7565316911.35124378346.6951863807.49
RNITURECO.LIMITED
193Closing balance Opening balance
Related party Provision for bad Provision for bad
Book balance Book balance
debts debts
OCT Group Co. Ltd. and
its subsidiaries and 95069787.49 15682476.73 100590722.52 15162359.88
associates
Chuzhou Hanshang Electric
84328956.54909014.4938536165.52786137.78
Appliance Co. Ltd.Anhui Kaikai Shijie
E-commerce Co. Ltd. and 46725631.12 3055744.43 60994542.80 1879460.35
its subsidiaries
Shenzhen Kanghongxing
Intelligent Technology Co. 39230506.73 39222383.06 39226376.64 39214097.96
Ltd.Shenzhen Jielunte
Technology Co. Ltd. and
10934260.72223058.928538236.25173326.20
its subsidiaries and
associates
Shenzhen Konda E-display
Co. Ltd. and its 4566869.61 414217.51 2038868.80 130671.94
subsidiaries
Subtotal of other related
19774344.274702381.9536068461.044978006.25
parties
Total 572020786.94 275994740.15 555933930.56 259750078.15
Financing accounts
receivable/Notes
receivable:
Korea Electric Group Co.
10000000.00
Ltd. and its subsidiaries
Chuzhou Hanshang Electric
10000000.00
Appliance Co. Ltd.Total 20000000.00
Dividends receivable
Wuhan Tianyuan
Environmental Protection 10465200.00
Co. Ltd.
194Closing balance Opening balance
Related party Provision for bad Provision for bad
Book balance Book balance
debts debts
Chutian Dragon Co. Ltd. 4240444.62
Shenzhen Jielunte
941482.38
Technology Co. Ltd.Total 14705644.62 941482.38
Other receivables:
Yantai Kangyue Investment
175910620.6718682100.00
Co. Ltd.Dai Rongxing 87692767.03 87692767.03 86150945.74 86150945.74
Shenzhen Kanghongxing
Intelligent Technology Co. 39888921.64 39888921.64 39888921.64 39888921.64
Ltd.OCT Group Co. Ltd. and
its subsidiaries and 30343358.95 20542421.70 31185288.31 20608710.48
associates
Dongguan Guankang
Yuhong Investment Co. 22000000.00 660000.00 22000000.00 660000.00
Ltd.HOHOELECTRICAL&FU
2500687.221622445.872485213.191612406.32
RNITURECO.LIMITED
Hu Zehong 977294.24 94287.93 1395042.29 135057.89
Jiangxi Meiji Enterprise
93512640.3193512640.31
Co. Ltd.Huanjia Group Co. Ltd. 25083675.53 24582002.02
Subtotal of other related
225666.726726.05145049.832993.94
parties
Total 359539316.47 169189670.22 301846776.84 267153678.34
Prepayments:
Puchuang Jiakang
10596705.00
Technology Co Ltd.OCT Group Co. Ltd. and
its subsidiaries and 75511.22 238185.12
associates
195Closing balance Opening balance
Related party Provision for bad Provision for bad
Book balance Book balance
debts debts
Shenzhen Jielunte
Technology Co. Ltd. and 7764.63
its subsidiaries
Subtotal of other related
187017.99
parties
Total 10859234.21 245949.75
Other current assets:
Chuzhou Kangxin Health
Industry Development Co. 412246840.52 396256021.05
Ltd.Yantai Kangyun Industrial
265592911.14256452466.70
Development Co. Ltd.Chongqing Lanlv Moma
Real Estate Development 243451559.91 235830613.25
Co. Ltd.Sichuan Hongxinchen Real
Estate Development Co. 236192420.65 228799064.74
Ltd.Shandong Econ
Technology Co. Ltd. and 234271017.20 233116949.03
its subsidiaries
Dongguan Guankang
Yuhong Investment Co. 223229933.65 224838028.99
Ltd.Sichuan Chengrui Real
174432231.04168476988.84
Estate Co. Ltd.Yantai Kangyue Investment
170712417.5618682100.00
Co. Ltd.Total 1789416914.11 1914482550.16 18682100.00
（2） Payables
196Book balance at the end of Book balance at the
Related party
the period beginning of the period
Accounts payable:
Shenzhen Jielunte Technology Co. Ltd. and its subsidiaries and
31049279.8733987442.17
associates
OCT Group Co. Ltd. and its subsidiaries and associates 27725955.80 28693864.79
Chuzhou Hanshang Electric Appliance Co. Ltd. 24759143.98 43592692.34
Shenzhen Konda E-display Co. Ltd. and its subsidiaries 14723403.30 10343033.76
HOHOELECTRICAL&FURNITURECO.LIMITED 6635707.92 10195877.56
Korea Electric Group Co. Ltd. and its subsidiaries 6562139.19 4374416.65
Anhui Kaikai Shijie E-commerce Co. Ltd. and its subsidiaries 4326148.17 4614860.81
Panxu Intelligence Co. Ltd. and its subsidiaries 2092771.45 3558734.12
Dongguan Konka Smart Electronic Technology Co. Ltd. 485152.86 288114.11
Subtotal of other related parties 51590105.78 62595100.98
Total 169949808.32 202244137.29
Notes payable:
Dongguan Kangjia New Materials Technology Co. Ltd. 5208249.77 4352821.66
Korea Electric Group Co. Ltd. and its subsidiaries 2948260.34 4709353.26
Shenzhen Jielunte Technology Co. Ltd. and its subsidiaries 2687124.58 916829.48
Panxu Intelligence Co. Ltd. and its subsidiaries 1962738.39
Total 10843634.69 11941742.79
Contractual liabilities/other current liabilities:
OCT Group Co. Ltd. and its subsidiaries and associates 42855945.24 43675417.58
Shenzhen Konda E-display Co. Ltd. and its subsidiaries 8184562.22 28903907.67
Shandong Kangfei Intelligent Electrical Appliances Co. Ltd. 187981.82 246708.55
Shenzhen Aimijiakang Technology Co. Ltd. 2191.50 1030654.81
Subtotal of other related parties 5086921.84 1412447.04
Total 56317602.62 75269135.65
197Book balance at the end of Book balance at the
Related party
the period beginning of the period
Other payables:
Chuzhou Hanshang Electric Appliance Co. Ltd. 206345489.22 195705860.89
Shandong Econ Technology Co. Ltd. and its subsidiaries 19369484.27 42146282.34
OCT Group Co. Ltd. and its subsidiaries and associates 15996696.01 23291255.06
Central Enterprises in poverty-stricken areas (Jiangxi) Industrial
12000000.009600000.00
Investment Funds Partnership (L.P.)
Beijing Xuri Shengxing Technology Co. Ltd. 2605409.66 2536047.85
Konka Ventures Development (Shenzhen) Co. Ltd. 2486649.34 2523500.05
Chongqing Kangjian Optoelectronics Technology Co. Ltd. 500000.00
Dongguan Kangjia New Materials Technology Co. Ltd. 410526.24 410526.24
E3info (Hainan) Technology Co. Ltd. and its subsidiaries and
10328.4863099.88
associated enterprises
Subtotal of other related parties 18282012.76 11052687.80
Total 278006595.98 287329260.11
4. Related party commitments
The Group did not have any related party commitments.
5. Others
The Group did not have any related party matters.XIV. Commitments and Contingencies
1. Significant commitments
（1）Capital commitments
Item Closing balance Opening balance
Contract signed but hasn't been recognised in
financial statements
Commitment on construction and purchase of 32718400.00
198long-lived assets
Large amount contract 248842082.25 295615545.67
Foreign investment commitments
Total 281560482.25 295615545.67
（2）Other commitments
As of 30 June 2024 there were no other significant commitments for the Company to disclose.
2. Contingencies
The Group's material contingencies requiring disclosure are set out below:
(1) Before the Company acquired Jiangxi Konka Jiangxi Konka and its subsidiaries Xinfeng Microcrystalline
and Jiangxi High Transparent Substrate (formerly known as Nano-Crystallised Glass) provided joint and several
liability guarantee for the loans from Nanchang Rural Commercial Bank Co. Ltd. to Jiangxi Xinxin Jian'an
Engineering Jiangxi Zhongyi Decorative Material and Jiangxi Shanshi Science and Technology related parties of
former controlling shareholders of Jiangxi Konka and Nanchang Rural Commercial Bank Co. Ltd. then
transferred the claims to China Great Wall AMC Jiangxi Branch. For the failure of Jiangxi Xinxin Jian'an
Engineering Jiangxi Zhongyi Decorative Material and Jiangxi Shanshi Science and Technology to repay the
borrowings on time China Great Wall AMC Jiangxi Branch filed a lawsuit requesting Jiangxi Xinxin Jian'an
Engineering Jiangxi Zhongyi Decorative Material and Jiangxi Shanshi Science and Technology to repay the loan
principal amounting to RMB300 million and the liquidated damage and interest arising from it and guarantors
Jiangxi Konka Jiangxi High Transparent Substrate and Xinfeng Microcrystalline to bear joint and several liability
for such debts.On 31 October 2019 the Higher People's Court of Jiangxi Province ruled in the first instance that Jiangxi Xinxin
Jian'an Engineering Jiangxi Zhongyi Decorative Material Jiangxi Shanshi Technology should repay to China
Great Wall AMC Jiangxi Branch the loan principal of RMB300 million and the interest and liquidated damage
arising from it within 10 days from the effective date of the judgment and Jiangxi Konka New Material Zhu
Xinming Leng Sumin Nano-Crystallised Glass Xinfeng Microcrystalline should bear joint and several liability
for all debts recognised in this judgment. The defendants appealed against the verdict of the first instance and the
Supreme People's Court accepted the appeal. On 24 March 2021 the Supreme People's Court made the following
ruling: I. Civil Judgment (2018) G.M.CH. No. 110 made by the Higher People's Court of Jiangxi Province is
abrogated; II. This case is remanded to the Higher People's Court of Jiangxi Province for retrial. As of the date of
issuance of this report the first instance of the retrial was decided an appeal had been filed and the second
instance of the retrial is in progress.The actual controller of Jiangxi Konka New Materials Zhu Xinming and his spouse Leng Sumin Jiangxi
Xinzixin Real Estate Co. Ltd. Zhu Zilong Zhu Qingming and Zeng Xiaohong as guarantors provided a total of
approximately RMB143 million of real estate mortgage guarantee to Great Wall AMC for the above loans. Zhu
Xinming and Leng Sumin also provided joint liability guarantees. In order to avoid the adverse impact of this case
on the Company the Company has agreed in the acquisition agreement of Jiangxi Konka Xinfeng
Microcrystalline and nanometre microcrystalline that all contingent debts incurred by Jiangxi Konka by the
199original shareholders of Konka new material in the form of joint and several liability. Jiangxi Xinzixin Real Estate
Co. Ltd. has held a total of approximately RMB243 million of real estate assets as the case of the anti-guarantee
mortgage to Konka group and went through the mortgage registration procedures. As of the date of this report the
case is still on trial and the above commercial acceptance bill has not been honoured.
(2) As for the dispute of the Company with Luo Zaotong Luo Jingxia Luo Zongyin Luo Zongwu and Shenzhen
Yaode Technology Co. Ltd. on share repurchase since the other party did not actively perform the repurchase
obligation the Company filed a lawsuit with the People's Court of Nanshan District Shenzhen. The amount of the
subject matter involved in the lawsuit is RMB249 million. On 22 November 2021 the Company applied to the
People's Court of Nanshan District Shenzhen for property preservation. On 11 January 2023 the People's Court
of Nanshan District Shenzhen rendered a verdict of the first instance ruling that Luo Zaotong Luo Jingxia Luo
Zongyin and Luo Zongwu pay the repurchase amount of RMB172 million plus the sum of interest calculated at 12%
per annum from 6 April 2017 to the date of payment of the equity repurchase by the defendant Luo Zaotong Luo
Jingxia Luo Zongyin and Luo Zongwu. As of the date of issuance of this report the case was executed in
progress.
(3) As the acceptor failed to pay the commercial acceptance bills held by the Company upon maturity the
Company as the plaintiff requested debtors Hongtu Sanpower Technology Co. Ltd. Jiangsu Hongtu High
Technology Co. Ltd. Sanpower Group Co. Ltd. Nanjing Jiongjiong Electronic Technology Co. Ltd. and
Shenzhen Qianhai Benniu Agricultural Technology Co. Ltd. to RMB200 million bear joint and several liability
for the bills and the overdue interest. In July 2019 the company filed a lawsuit with the court and the court has
preserved the defendant's corresponding property. As of the date of issuance of this report the case was closed.
(4) The amount of the subject matter involved in the dispute between the Company and Wuhan Jialian
Agricultural Technology Development Co. Ltd. Peng Chaojun He Jiaguo He Jiayi Liang Xiangzhou Xu
Yizheng He Fan Pang Huasheng Song Liangming and Liang Xiangmei over the right of recourse for bills is
RMB200 million and the corresponding interest. In September 2020 the Company filed a lawsuit with the Wuhan
Intermediate People's Court and the court ordered the defendant to pay Konka Group the principal amount of the
note of RMB200 million and relevant overdue interest. The defendant applied for retrial during the execution of
the case. As of the date of issuance of this report the case was in retrial.
(5) The amount of the subject matter involved in the dispute between the Company's subsidiary Konka Unifortune
and Shenzhen Yaode Technology Co. Ltd. Dongsheng Xinluo Technology (Shenzhen) Co. Ltd. Shenzhen
Hongyao Dingsheng Investment Management Co. Ltd. Shenzhen Xiangrui Yingtong Investment Management
Co. Ltd. Luo Jingxia Luo Zongwu Luo Zongyin Luo Zaotong and Luo Saiyin over contracts is RMB155
million. On 8 September 2022 the court issued a judgment in favour of the Company's subsidiary. As of the date
of issuance of this report the case was executed in progress.
(6) As the acceptor failed to pay the commercial bills held by the Company upon maturity the Company as the
plaintiff filed a lawsuit with the court on the matured bills amounting to RMB300 million requesting the bill
acceptor Shanghai Huaxin and prior parties involved to bear joint and several liability for the bills and liquidated
damage and interest. As of the date of issuance of this report the case was executed in progress.
(7) The amount of the subject matter involved in the dispute between the Company's subsidiaries Frestec
Refrigeration Anhui Konka Konka Material and Anhui Tongchuang (plaintiff) and Shantou Meisen Technology
Co. Ltd. Shenzhen Meisenyuan Plastic Electronics Co. Ltd. Lin Yuanqin Huang Ruirong Jiangsu Huadong
Hardware Zone Co. Ltd. Chuangfu Commerce & Trade Plaza Real Estate Development (Huizhou) Co. Ltd. and
200Puning Junlong Trade Co. Ltd. (defendants) over contracts is RMB380 million. As of the date of issuance of this
report the portion of the case related to Xinfei and Meisen was in trial while the rest case was executed in
progress.
(8) The amount of the subject matter involved in the dispute between the Company's subsidiary Dongguan Konka
(plaintiff) and Dongguan Gaoneng Polymer Materials Co. Ltd. Wang Dong Shenzhen Xinlian Xingyao Trading
Co. Ltd. Shenzhen Jinchuan Qianchao Network Technology Co. Ltd. Puning Junlong Trading Co. Ltd. and
Huang Zhihao (defendants) over sales and purchase contracts is RMB90 million. In December 2020 the Company
filed a lawsuit with the court and obtained a judgment in its favour in June 2023. As of the date of issuance of this
report the case was executed in progress.
(9) As the acceptor failed to pay the commercial bills held by the Company upon maturity the Company as the
plaintiff filed a lawsuit with the court on the matured bills amounting to RMB78 million requesting the court to
order Hefei Huajun Trading Co. Ltd. and Wuhan Jialian Agricultural Technology Development Co. Ltd. to pay
the Company the bills and the interest for default and applied for property preservation. As of the date of issuance
of this report the case was executed in progress.
(10) The amount of the subject matter involved in the dispute between the Company's subsidiary Konka
Electronic Materials (formerly known as Konka Factoring) (the plaintiff) and Tahoe Group Co. Ltd. Fuzhou
Taijia Enterprise Co. Ltd. and Xiamen Lianchuang Micro-electronics Co. Ltd. (the defendants) over the right of
recourse for bills is RMB50 million and the corresponding interest. On 1 September 1 2021 the Intermediate
People's Court of Xiamen Municipality Fujian Province ordered the defendants to pay the plaintiff e-commercial
acceptance bills of RMB50 million and the corresponding interest. As of the date of issuance of this report the
case was executed in progress.
(11) The amount of the subject matter involved in the dispute between the Company (plaintiff) and China Energy
Electric Fuel Co. Ltd. China Energy (Shanghai) Enterprise Co. Ltd. Shanghai Nengping Enterprise Co. Ltd.and Shenzhen Qianhai Baoying Commercial Factoring Co. Ltd. (defendants) over the right of recourse for bills is
RMB50 million and the corresponding interest. In September 2018 the company filed a lawsuit with the
Shenzhen Intermediate People's Court and the court has preserved the defendant's corresponding property. As of
the date of issuance of this report the case was executed in progress.
(12) The amount of the subject matter involved in the dispute between the Company's subsidiary Anhui Konka
(plaintiff) and Makena Electronic (Hong Kong) (defendant) over the sales and purchase contract is
RMB5440200. On 7 December 2021 Anhui Konka filed arbitration with the Shenzhen Court of International
Arbitration. On 14 October 2022 the compulsory enforcement was filed. As of the date of issuance of this report
the case was executed in progress.
(13) The amount of the subject matter involved in the dispute between the Company's subsidiary Anhui Konka
(plaintiff) and Shanghai Likai Logistics Co. Ltd. Shenzhen Branch and Shanghai Likai Logistics Co. Ltd.(defendants) over freight forwarding contracts in maritime and open sea waters is RMB38 million. On 26 April
2021 Konka applied to Shanghai Maritime Court for compulsory execution. On 7 June 2021 the court accepted
the case. As of the date of issuance of this report the case was executed in progress.
(14) The amount of the subject matter involved in the dispute between the Company's subsidiary Pengrun
Technology (plaintiff) and Guangan Ou Qi Shi Electronic Technology Co. Ltd. Guan Hongshao Huaying
Gaokede Electronic Technology Co. Ltd. Huaying Gaokelong Electronic Technology Co. Ltd. Guizhou
Jiaguida Technology Co. Ltd. Sichuan Hongrongyuan Real Estate Co. Ltd. Du Xinyu Linbolong and Wang
201Shisheng (defendants) over trust contract is RMB167 million. The case has been applied for property preservation
measures. As of the date of issuance of this report the case was executed in progress.
(15) The amount of the subject matter involved in the dispute between the Company (plaintiff) and Yantai
Kangyue Investment Co. Ltd. (defendant) over borrowing contract is RMB160 million. The Company has applied
to the Shenzhen Intermediate People's Court for property preservation. As of the date of issuance of this report
the case was executed in progress.
(16) The amount of the subject matter involved in the dispute between the Company's subsidiary Jiaxin
Technology Co. Limited (plaintiff) and Tripod Electronics Technology (HongKong) Limited Chen Wenhuan and
Chen Baohong (defendants) over a sales and purchase contract of international goods is RMB51 million. As of the
date of issuance of this report the case was under trial.
(17) In the case of contract dispute between the Company (plaintiff) Zhu Xinming Leng Sumin Gongqingcheng
BRIC Investment Management Partnership (limited partnership) and Gongqingcheng Xinrui Investment
Management Partnership (Limited partnership) (defendant) due to the failure of the other party to pay
performance compensation as agreed the Company filed an arbitration with the Shenzhen International
Arbitration Court in June 2023. The amount of the subject matter involved in the lawsuit is RMB939044100. As
of the date of issuance of this report the case was under trial.
(18) In the case of contract dispute between the Company's subsidiaries Konka Lifeng (Plaintiff) and Shenzhen
Junxing Communication Technology Co. Ltd. Gu Mei Electronics (Hong Kong) Technology Co. Ltd. Shenzhen
Hongxing Fengda Industrial Development Co. Ltd. Shenzhen Junxing Junye Electronics Co. Ltd. Zeng Jiankai
Zhang Zhenyu Haiying Technology Group (Hong Kong) Co. Ltd. Zhang Lixia Anhui Baolin Industry Co. Ltd.Zeng Qingpeng Zhong Yuhua (Defendant) the subject matter of the lawsuit is RMB262711100. As of the date
of issue of this report the case was under trial.
(19) Shenzhen Nianhua (plaintiff) a subsidiary of the Company filed an arbitration with the Shenzhen
International Arbitration Court in March 2023 in a share repurchase dispute with Fang Xianglong and Jiang Yan
(defendant) due to the other party's failure to repurchase the share and pay the repurchase price as agreed. The
subject matter of the lawsuit is RMB151605500. As of the date of issue of this report the case was under
implementation.
(20) The amount of the subject matter involved in the dispute between the Company's subsidiary Sichuan Konka
(plaintiff) and Shenzhen Junxing Communication Technology Co. Ltd. Shenzhen Hongxing Fengda Industrial
Development Co. Ltd. Shenzhen Junxing Junye Electronics Co. Ltd. Liuyang Huichuan Heyuan Villa Co. Ltd.Zeng Jiankai Zhong Yuhua (defendant) over a sales and purchase contract is RMB51.72 million. As of the date of
issuance of this report the case was under implementation.
(21) The Company (plaintiff) filed a lawsuit with the Nanshan District People's Court of Shenzhen in May 2023
concerning the equity transfer contract dispute with Longrui Haoteng Technology Development Co. Ltd. Beijing
Beida Blue Bird Security System Engineering Technology Co. Ltd. and Beijing Jingrui Haoteng Technology
Development Co. Ltd. (Defendant) due to the failure of the other party to pay the balance of the equity transfer as
agreed. The subject matter involved amounted to RMB45.4076 million. As of the date of issue of this report the
case was under implementation.
(22) The amount of the subject matter involved in the dispute between Shenzhen Oriental Venture Capital
Investment Co. Ltd. (plaintiff) and the Company (defendant) over a contract is RMB750 million. As of the date
202of issuance of this report the case was under trial.
(23) The amount of the subject matter involved in the dispute between Sichuan Shuwu Guangrun logistics Co.
Ltd. (plaintiff) and the Company's subsidiary Dongguan Konka (defendants) over a sales and purchase contract is
RMB122834600. As of the date of issuance of this report the case was under trial.XV. Subsequent Events after the Balance Sheet Date
1. Important non-adjusting matters
The Group had no significant non-adjusting matters to disclose as of the date of this financial report.
2. Sales return
As of the date of this financial report the Group had no material sales returns.
3. Notes to other subsequent events after the balance sheet date
Except for the above disclosure of matters after the balance sheet date the Group did not have any other
significant events after the balance sheet date.XVI. Other Key Matters
As Konka Huanjia a subsidiary of the Company was unable to repay its debts as they matured and its assets were
insufficient to repay all of its debts the Company filed an application with the People's Court of Ganjizi District
Dalian City Liaoning Province (the "Dalian Ganjingzi District Court") for the bankruptcy and liquidation of
Konka Huanjia on 28 February 2024. On 29 February 2024 the Dalian Ganjingzi District Court decided in
accordance with the law to accept the Company's application. On 14 March 2024 the Dalian Ganjingzi District
Court appointed Shanghai SGLA (Dalian) Law Firm to act as the administrator (hereinafter referred to as the
"Administrator") of the bankruptcy and liquidation case of Kangjia Huanjia. On 15 March 2024 the Administrator
took over the relevant information and physical objects of Konka Huanjia. The Company no longer exercises
control over Konka Huanjia since 15 March 2024.Apart from the above matters the Group had no other significant transactions and events that had an impact on
investors' decision-making that needed to be disclosed.XVII. Notes to the Main Items of the Financial Statements of the Parent Company
1. Accounts receivable
（1） Accounts receivable listed by aging portfolio
Book balance at the beginning of the
Aging Book balance at the end of the period
period
Within one year (inclusive) 1576900729.92 1206382965.89
One to two years 1224353927.73 1471518725.52
203Book balance at the beginning of the
Aging Book balance at the end of the period
period
Two to three years 280813815.55 116480162.93
Three to four years 61088778.22 58805217.49
Four to five years 13205337.48 122821401.69
Over five years 825400530.17 806589292.93
Total 3981763119.07 3782597766.45
（2） Accounts receivable listed by withdrawal methods for bad debts
Closing balance
Book balance Provision for bad debts
Category
Provision
Proportion Carrying value
Amount Amount percentage
(%)
(%)
Accounts receivable of
expected credit losses 752374855.73 18.90 708515174.55 94.17 43859681.18
withdrawn individually
Accounts receivable of
expected credit losses
withdrawn by portfolio
Of which: Aging portfolio 322883164.84 8.10 166335392.46 51.52 156547772.38
Grouping of related parties 2906505098.50 73.00 2906505098.50
Subtotal of portfolio 3229388263.34 81.10 166335392.46 5.15 3063052870.88
Total 3981763119.07 100.00 874850567.01 21.97 3106912552.06
(Continued)
Opening balance
Category
Book balance Provision for bad debts Carrying value
204Provision
Proportion
Amount Amount percentage
(%)
(%)
Accounts receivable of
expected credit losses 752763517.97 19.90 708873222.27 94.17 43890295.70
withdrawn individually
Accounts receivable of
expected credit losses
withdrawn by portfolio
Of which: Aging portfolio 355972586.88 9.41 166216118.67 46.69 189756468.21
Grouping of related parties 2673861661.60 70.69 2673861661.60
Subtotal of portfolio 3029834248.48 80.10 166216118.67 5.49 2863618129.81
Total 3782597766.45 100.00 875089340.94 23.13 2907508425.51
1） Provision set aside for bad debts of accounts receivable by single item
Closing balance
Provision
Name Reasons for the
Book balance Provision for bad debts percentage
provision
(%)
Shanghai Huaxin International Group Expected to be
298855950.30292878831.2998.00
Co. Ltd. difficult to recover
Hongtu Sanbao High-tech Technology Expected to be
200000000.00180000000.0090.00
Co. Ltd. difficult to recover
Zhongfu Tiangong Construction Group Expected to be
71289096.6553466822.4975.00
Co. Ltd. difficult to recover
CCCC First Harbor Engineering Not expected to be
55438105.0055438105.00100.00
Company Ltd. recoverable
Not expected to be
China Energy Power Fuel Co. Ltd. 49993564.16 49993564.16 100.00
recoverable
36900685.9436900685.94100.00
Shenzhen Kanghongxing Intelligent Not expected to be
205Closing balance
Provision
Name Reasons for the
Book balance Provision for bad debts percentage
provision
(%)
Technology Co. Ltd. recoverable
Expected to be
Others 39897453.68 39837165.67 99.85
difficult to recover
Total 752374855.73 708515174.55 94.17
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
Closing balance
Aging
Provision for bad Provision percentage
Book balance
debts (%)
Within one year 112395876.40 2292875.89 2.04
One to two years 5187.00 519.74 10.02
Two to three years 59706366.00 13547374.44 22.69
Three to four years 800435.79 519322.74 64.88
Four to five years 171776.01 171776.01 100.00
Over five years 149803523.64 149803523.64 100.00
Total 322883164.84 166335392.46 51.52
* In the portfolio accounts receivable of provision for expected credit loss made by other methods
Closing balance
Aging Provision for bad Provision percentage
Book balance
debts (%)
Grouping of related parties 2906505098.50
Total 2906505098.50
206（3） Provision for bad debts of accounts receivable set aside recovered or reclassified in the current
period
Change in the current period
Category Opening balance Recovery or
Provision
reclassification
Provision for bad debts of accounts
875089340.94301481.02540254.95
receivable
Total 875089340.94 301481.02 540254.95
(Continued)
Change in the current period
Category Decrease for other Closing balance
Charge-off or write-off
reasons
Provision for bad debts of accounts
874850567.01
receivable
Total 874850567.01
There were no provisions for bad debts with significant amounts to be recovered or classified in the Reporting
Period.
（4） Accounts receivable actually written off in the current period
There were no accounts receivable actually written off in the current period.
（5） Top five accounts receivable and contract assets in the closing balance categorised by debtors
The total amount of accounts receivable with top five closing balance categorised by debtors in the current
period was RMB3055758056.02 accounting for 76.74% of the total closing balance of accounts receivable. The
total closing balance of provision for bad debts correspondingly set aside was RMB472878831.29.
2. Other accounts receivable
Item Closing balance Opening balance
Interest receivable 7098359.12 6325400.49
Dividends receivable 410736627.52 395209709.13
207Item Closing balance Opening balance
Other receivables 7584889286.80 7560988861.81
Total 8002724273.44 7962523971.43
2.1 Interest receivable
Item Closing balance Opening balance
Interest on term deposits 7098359.12 6325400.49
Total 7098359.12 6325400.49
2.2 Dividends receivable
Item Closing balance Opening balance
Hong Kong Konka 116030982.90 115209709.13
Suining Konka Industrial Park 280000000.00 280000000.00
Chutian Dragon Co. Ltd. 4240444.62
Wuhan Tianyuan Environmental Protection Co.
10465200.00
Ltd.Total 410736627.52 395209709.13
2.3 Other receivables
（1） Classified by account nature
Book balance at the end of the Book balance at the beginning of the
Nature of fund
period period
Intercourse funds among subsidiaries 7397162611.22 9069786800.21
Energy-saving subsidies receivable 141549150.00 141549150.00
Intercourse funds with other related parties 2024073267.21 235267733.09
Deposit security deposit deposit 11713898.17 12721943.88
Others 20112856.02 99060310.98
208Book balance at the end of the Book balance at the beginning of the
Nature of fund
period period
Total 9594611782.62 9558385938.16
（2） Other receivables listed by aging
Book balance at the end of the Book balance at the beginning of the
Aging
period period
Within one year (inclusive) 2451928731.79 5210348063.16
One to two years 2602382126.67 2145922239.93
Two to three years 2236964599.17 198105811.44
Three to four years 425321765.69 439082181.54
Four to five years 322010578.45 1004762554.22
Over five years 1556003980.85 560165087.87
Total 9594611782.62 9558385938.16
（3） Classified presentation of other receivables by provisioning methods of bad debts
Closing balance
Book balance Provision for bad debts
Category
Provision
Proportion Carrying value
Amount Amount percentage
(%)
(%)
Other receivables of
expected credit
2115468102.0622.051958223301.3992.57157244800.67
losses set aside by
single item
Other receivables of
provision for bad
debts set aside by
credit risk
characteristic
209Closing balance
Book balance Provision for bad debts
Category
Provision
Proportion Carrying value
Amount Amount percentage
(%)
(%)
portfolio:
Aging portfolio 69725271.20 0.73 47479729.45 68.10 22245541.75
Low-risk portfolio 12255798.14 0.13 4019464.98 32.80 8236333.16
Grouping of related
7397162611.2277.097397162611.22
parties
Subtotal of portfolio 7479143680.56 77.95 51499194.43 0.69 7427644486.13
Total 9594611782.62 100.00 2009722495.82 20.95 7584889286.80
(Continued)
Opening balance
Book balance Provision for bad debts
Category
Provision
Proportion Carrying value
Amount Amount percentage
(%)
(%)
Other receivables
of expected credit
2110298248.9522.081958251651.3992.80152046597.56
losses set aside by
single item
Other receivables
of provision for
bad debts set
aside by credit
risk characteristic
portfolio:
Aging portfolio 84338231.39 0.88 32163233.75 38.14 52174997.64
16543239.090.176982191.2142.219561047.88
Low-risk
210Opening balance
Book balance Provision for bad debts
Category
Provision
Proportion Carrying value
Amount Amount percentage
(%)
(%)
portfolio
Grouping of
7347206218.7376.877347206218.73
related parties
Subtotal of
7448087689.2177.9239145424.960.537408942264.25
portfolio
Total 9558385938.16 100.00 1997397076.35 20.90 7560988861.81
1） Provision set aside for bad debts of other receivables by the general expected credit loss model
Phase I Phase II Phase III
Expected credit loss Expected credit loss
Provision for bad debts Expected credit during the whole during the whole Total
loss for the next outstanding maturity outstanding maturity
12 months (without credit (with credit
impairment) impairment)
Balance as of 1 January 2024 841697.01 38303727.95 1958251651.39 1997397076.35
Balance as of 1 January 2024 in
-294559.25294559.25
the current year
-- Transferred to Phase II -294559.25 294559.25
-- Transferred to Phase III
-- Reclassified under Phase II
-- Reclassified under Phase I
Provision in the current period 12698964.19 12698964.19
Recovery in the current period 345203.80 28350.00 373553.80
211Charge-off in the current period
Write-off in the current period
Other changes 9.08 9.08
Balance as at 30 June 2024 201933.96 51297260.47 1958223301.39 2009722495.82
Note: The first stage is that credit risk has not increased significantly since initial recognition. For other
receivables with an aging portfolio and a low-risk portfolio within one year the loss provision is measured
according to the expected credit losses in the next 12 months.The second stage is that credit risk has increased significantly since initial recognition but credit impairment has
not yet occurred. For other receivables with an aging portfolio and a low-risk portfolio that exceed one year the
loss provision is measured based on the expected credit losses for the entire duration.The third stage is the credit impairment after initial confirmation. For other receivables of credit impairment that
have occurred the loss provision is measured according to the credit losses that have occurred throughout the
duration.
（4） Provision for bad debts of other receivables set aside recovered or reclassified in the current
period
The amount of provision for bad debts in the current period was RMB12325410.39.
（5） Other receivables actually written off in the current period
There were no other receivables actually written off in the current period.
（6） Other receivables with top five year-end balances categorised by debtors
The total amount of other receivables with top five closing balance categorised by debtors in the current period
was RMB6558102802.54 accounting for 68.35% of the total closing balance of other receivables. The total
closing balance of provision for bad debts correspondingly set aside was RMB1744736434.49.
3. Long-term equity investment
Closing balance Opening balance
Item Provision for Provision for
Book balance Carrying value Book balance Carrying value
impairment impairment
Investment
in 7068025423.9 6378345423.9 7156825933.9 6375345933.9
689680000.00781480000.00
subsidiarie 8 8 8 8
s
212Investment
in
associated 2347583606.0 1954028706.0 2279596484.2 1977841584.1
393554900.04301754900.04
enterprises 4 0 0 6
and joint
ventures
9415609030.01083234900.08332374129.99436422418.11083234900.08353187518.1
Total
248844
（1） Investment in subsidiaries
Impair
ment
Closing
provisi
Increase in the Decrease in the balance of the
Investee Opening balance Closing balance on set
current period current period provision for
aside in
impairment
the
current
period
Konka
2550000.002550000.00
Ventures
Anhui
122780937.98122780937.98
Konka
Konka
Electron
ic 300000000.00 300000000.00
Material
s
Konka
Unifortu 15300000.00 15300000.00
ne
Wankaid
10000000.0010000000.00
a
213Impair
ment
Closing
provisi
Increase in the Decrease in the balance of the
Investee Opening balance Closing balance on set
current period current period provision for
aside in
impairment
the
current
period
Donggu
an 274783988.91 274783988.91
Konka
Konka
3637470.003637470.00
Europe
Telecom
municati
on 360000000.00 360000000.00
Technol
ogy
Mobile
Intercon 100000000.00 100000000.00
nection
Anhui
Tongchu 779702612.22 779702612.22
ang
Kangjiat
30749800.0030749800.00
ong
Pengrun
Technol 25500000.00 25500000.00
ogy
Beijing
Konka
200000000.00200000000.00
Electron
ic
214Impair
ment
Closing
provisi
Increase in the Decrease in the balance of the
Investee Opening balance Closing balance on set
current period current period provision for
aside in
impairment
the
current
period
Konka
437050000.0013000000.00450050000.00
Circuit
Hong
Kong 781828.61 781828.61
Konka
Konka
Investm 500000000.00 500000000.00
ent
Electron
ics
1000000000.001000000000.00
Technol
ogy
Shangha
40000000.0040000000.00
i Konka
Jiangxi
689680000.0
Konka
0
Shenzhe
n 30000000.00 30000000.00
Nianhua
Shenzhe
n
100000000.00100000000.00
KONSE
MI
Konka 50000.00 50000.00
Eco-Dev
215Impair
ment
Closing
provisi
Increase in the Decrease in the balance of the
Investee Opening balance Closing balance on set
current period current period provision for
aside in
impairment
the
current
period
elopmen
t
Suining
Konka
200000000.00200000000.00
Industria
l Park
Konka
5100000.005100000.00
Ronghe
Suining
Electron
ic
Technol 200000000.00 200000000.00
ogical
Innovati
on
Shenzhe
n
Chuangz
hi
10000000.0010000000.00
Electrica
l
Applian
ces
Chongqi
ng
Konka
933333333.33933333333.33
Optoelec
tronic
Technol
216Impair
ment
Closing
provisi
Increase in the Decrease in the balance of the
Investee Opening balance Closing balance on set
current period current period provision for
aside in
impairment
the
current
period
ogy
Kowin
Memory
192520000.00192520000.00
(Shenzh
en)
Ningbo
Kanghr
Electrica
90000000.0090000000.00
l
Applian
ce
Konka
Intellige
nt 510.00 510.00
Manufac
turing
Suining
Jiarun 10000000.00 10000000.00
Property
Yibin
67000000.0067000000.00
Kangrun
Hainan
Konka
Material 9205452.93 9205452.93
Technol
ogy
Konka 50000000.00 50000000.00
217Impair
ment
Closing
provisi
Increase in the Decrease in the balance of the
Investee Opening balance Closing balance on set
current period current period provision for
aside in
impairment
the
current
period
Cross-b
order
(Hebei)
Konka
Huazhon 30000000.00 30000000.00
g
Guizhou
Kanggui
Material 28000000.00 28000000.00
Technol
ogy
Nantong
15300000.0015300000.00
Kanghai
Jiangxi
Konka
50000000.0050000000.00
High-tec
h Park
Shangra
o Konka
Electron
ic
30000000.0030000000.00
Technol
ogy
Innovati
on
Xi'an
Kangho 12000000.00 12000000.00
ng
218Impair
ment
Closing
provisi
Increase in the Decrease in the balance of the
Investee Opening balance Closing balance on set
current period current period provision for
aside in
impairment
the
current
period
Technol
ogy
Industry
Xi'an
Konka
Intellige
50000000.0050000000.00
nt
Technol
ogy
Songyan
g Konka
30000000.0030000000.00
Intellige
nt
Konka
North 30000000.00 30000000.00
China
689680000.0
Total 6375345933.98 13000000.00 10000510.00 6378345423.98
0
（2） Investment in associated enterprises and joint ventures
Changes in the current period
Profit or loss of Changes in
Balance as at the end
Investee Increase in Decrease in investment other
of last period
the investment the investment recognised by the comprehensive
equity method income
Anhui Kaikai Shijie E-commerce
17493847.46-5828645.96
Co. Ltd.
219Changes in the current period
Profit or loss of Changes in
Balance as at the end
Investee Increase in Decrease in investment other
of last period
the investment the investment recognised by the comprehensive
equity method income
Kunshan Kangsheng Investment
112914774.51-3336356.30
Development Co. Ltd.Shanxi Silk Road Cloud Intelligent
5187588.48-669600.90
Tech Co. Ltd.Shenzhen Kanghongxing
Intelligent Technology Co. Ltd.Shenzhen Zhongkang Beidou
Technology Co. Ltd.Shenzhen Kangjia Jiapin Intelligent
Electrical Apparatus Technology 7090590.47 -480528.54
Co. Ltd.Shenzhen Yaode Technology Co.Ltd.Wuhan Tianyuan Environmental
512729351.1117245673.07
Protection Co. Ltd.Shenzhen KONKA E-display Co.
15355334.741799918.18
Ltd.Chuzhou Konka Technology
Industry Development Co. Ltd.Chuzhou Kangjin Health Industrial
136166304.62-3469664.26
Development Co. Ltd.Nantong Kangjian Technology
Industrial Park Operations and 5625680.96
Management Co. Ltd.Shenzhen Kangyue Enterprise Co.
220Changes in the current period
Profit or loss of Changes in
Balance as at the end
Investee Increase in Decrease in investment other
of last period
the investment the investment recognised by the comprehensive
equity method income
Ltd.Dongguan Guankang Yuhong
Investment Co. Ltd.Chongqing Yuanlv Benpao Real
Estate Co. Ltd.Chuzhou Kangxin Health Industry
8277052.29-1100714.21
Development Co. Ltd.E3info (Hainan) Technology Co.
8574609.73
Ltd.Shenzhen Kangpeng Digital
1770021.01-345320.82
Technology Co. Ltd.Yantai Kangyun Industrial
Development Co. Ltd.Shandong Econ Technology Co.
928660408.13
Ltd.Dongguan Kangjia New Materials
3856971.322886.15
Technology Co. Ltd.Chongqing E2info Technology
185922140.286320936.88
Co. Ltd.Sichuan Chengrui Real Estate Co.Ltd.Wuhan Kangtang Information
25757222.60-848227.42
Technology Co. Ltd.Sichuan Hongxinchen Real Estate
2459686.45
Development Co. Ltd.
221Changes in the current period
Profit or loss of Changes in
Balance as at the end
Investee Increase in Decrease in investment other
of last period
the investment the investment recognised by the comprehensive
equity method income
Konka Huanjia Environmental
Technology Co. Ltd.Total 1977841584.16 9290355.87
(Continued)
Changes in the current period Closing balance
Cash dividends Provision Ending balance of
Investee Changes in other or profits set aside
depreciation
Others (Carrying value)
equities declared to be for reserve
distributed impairment
Anhui Kaikai Shijie
11665201.50
E-commerce Co. Ltd.Kunshan Kangsheng
Investment Development Co. 7350000.00 102228418.21
Ltd.Shanxi Silk Road Cloud
4517987.58
Intelligent Tech Co. Ltd.Shenzhen Kanghongxing
Intelligent Technology Co. 5158909.06
Ltd.Shenzhen Zhongkang Beidou
Technology Co. Ltd.Shenzhen Kangjia Jiapin
Intelligent Electrical
6610061.93
Apparatus Technology Co.Ltd.Shenzhen Yaode Technology
214559469.35
Co. Ltd.
222Changes in the current period Closing balance
Cash dividends Provision Ending balance of
Investee or profits set aside depreciation Changes in other
Others (Carrying value)
equities declared to be for reserve
distributed impairment
Wuhan Tianyuan
Environmental Protection Co. -11288034.03 10465200.00 508221790.15
Ltd.Shenzhen KONKA E-display
17155252.92
Co. Ltd.Chuzhou Konka Technology
Industry Development Co.Ltd.Chuzhou Kangjin Health
Industrial Development Co. 132696640.36
Ltd.Nantong Kangjian Technology
Industrial Park Operations and 5625680.96
Management Co. Ltd.Shenzhen Kangyue Enterprise
230011.61
Co. Ltd.Dongguan Guankang Yuhong
Investment Co. Ltd.Chongqing Yuanlv Benpao
Real Estate Co. Ltd.Chuzhou Kangxin Health
Industry Development Co. 7176338.08
Ltd.E3info (Hainan) Technology
4000000.004574609.73
Co. Ltd.Shenzhen Kangpeng Digital 1424700.19
223Changes in the current period Closing balance
Cash dividends Provision Ending balance of
Investee depreciation Changes in other or profits set aside
Others (Carrying value)
equities declared to be for reserve
distributed impairment
Technology Co. Ltd.Yantai Kangyun Industrial
Development Co. Ltd.Shandong Econ Technology
928660408.1381806510.02
Co. Ltd.Dongguan Kangjia New
Materials Technology Co. 3859857.47
Ltd.Chongqing E2info Technology
192243077.16
Co. Ltd.Sichuan Chengrui Real Estate
Co. Ltd.Wuhan Kangtang Information
24908995.18
Technology Co. Ltd.Sichuan Hongxinchen Real
2459686.45
Estate Development Co. Ltd.Konka Huanjia Environmental
91800000.00
Technology Co. Ltd.Total -11288034.03 21815200.00 1954028706.00 393554900.04
4. Operating revenue and cost of sales
（1） Operating income and operating costs
Amount incurred in the current period Amount incurred last period
Item
Income Cost Income Cost
Principal
840712402.51880759443.78588736212.10651086329.20
business
224Item Amount incurred in the current period Amount incurred last period
Other business 74623388.01 29020937.18 82606260.87 31456950.98
Total 915335790.52 909780380.96 671342472.97 682543280.18
（2） Information in relation to the trade price apportioned to the residual contract performance
obligation
The amount of revenue corresponding to performance obligations that have been contracted but have not yet been
fulfilled or completed at the end of the period is RMB2522999.28 of which RMB2522999.28 is expected to
be recognised as revenue in 2024.
5. Investment income
Amount incurred in the Amount incurred last
Item
current period period
Returns on long-term equity investments calculated by the equity
9290355.87-17573675.23
method
Return on investment arising from the disposal of long-term equity
16490883.27182495426.59
investments
Conversion of long-term equity investments accounted for by the
574780174.75
equity method to financial assets
Investment income from disposal of financial assets at fair value
11456.91-3794910.98
through profit or loss
Interest income from debt investments during the holding period 2140000.00 3622191.78
Return on investment in the financial assets held for trading during
4240444.629383976.00
the holding period
Others -152872.14 500000.00
Total 32020268.53 749413182.91
225XVIII. Supplementary Materials to the Financial Statements
1. Items and amounts of non-recurring profit or loss in the current period
Amount of current
Item Notes
period
Profit or losses on disposal of non-current assets (including the portion offset
837373.68
for provisions for asset impairment)
Government subsidies included in profit and loss of the current period
(except for government subsidies that are closely related to the Company's
normal business operation comply with national policies and are enjoyed in 55171603.63
accordance with defined criteria and have a continuing impact on the
Company's profit or loss)
Profit or losses from changes in fair value of financial assets and liabilities
held by non-financial corporations and profit or losses from the disposal of
-165919193.12
financial assets and liabilities except for effective hedging operations related
to the Company's normal business operations
Dispossession surcharge to non-financial institutions included in the current
profit and loss
Gain/Loss on entrusting others with investments or asset management
Gain/loss on entrustment loans 63154861.04
Losses on assets resulted from force majeure factors such as natural disasters
Reclassification of impairment loss allowances of receivables separately
tested for impairment
Profits arising from business combination when the combined cost is less
than the recognised fair value of net assets of the merged company
Current net profit or loss of subsidiaries acquired in business combination
under the same control from period-beginning to combination date
Profit/Loss on non-monetary asset swap
Profit/Loss on debt restructuring
One-time costs incurred by an enterprise as a result of the discontinuation of
226Amount of current
Item Notes
period
a related operating activity such as expenses for relocating employees
One-time impact on profit or loss for the current period due to adjustments in
tax accounting and other laws and regulations
One-time recognition of share-based payment expense due to cancellation
and modification of equity incentive plans
Cash-settled share-based payments profit or losses arising from changes in
the fair value of employee compensation payable after the date of
exercisability
Gain/loss on change in fair value of investment property of which the
follow-up measurement is carried out adopting fair value method
Income from transactions at significantly unfair prices
Profit and losses arising from contingencies unrelated to the normal operation
of the Company's business
Custodian fees earned from entrusted operation
Non-operating income and expenses other than those listed above 11832131.66
Other profit and loss items in line with the definition of non-recurring gains
30000710.67
and losses
Subtotal -4922512.44
Less: Income tax effect -29890840.20
Effect of minority shareholders' equities (after tax) 9471559.59
Total 15496768.17 —
(1) Specific information on other profit and loss items that meet the definition of non recurring gains and
losses:
Item Amount Reasons
Reversal of excess losses recognized in 31971388.49 In March 2024 one of the Company’s holding
227Item Amount Reasons
previous periods subsidiaries in Dalian entered into bankruptcy
and liquidation proceedings pursuant to a court
decision and has been taken over by a
court-appointed bankruptcy and liquidation
administrator to take over the relevant
information and physical objects and the
Company no longer controls this company and
therefore it has reversed the excess losses
recognized in previous periods.Derecognition of revenue for financial
-1970677.82 Derecognition of revenue for notes receivable
assets measured at amortized costs
(2) The Company recognises items that are not listed in the Explanatory Announcement No. 1 on Information
Disclosure by Companies Offering Securities to the Public--Non-recurring Profit or Loss (Revised in 2023) as
non-recurring profit or loss items and those involving significant mounts as well as the non-recurring profit or
loss items listed as recurring profit or loss items
Item Amount Reasons
Government subsidies which are closely
related to the normal business of the
Software tax refund 1596783.94 company and which are in accordance with
national policies and certain standard quota
or quantitative amount
2. Return on net assets and earnings per share
EPS (RMB/share)
Weighted average
Profit for the Reporting Period
Weighted average return on net
Basic earnings per Diluted earnings
assets (%)
share per share
Net profit attributable to ordinary
shareholders of the Company as the -21.33 -0.4517 -0.4517
Parent
Net profit attributable to ordinary
shareholders of the Company as the
-21.64-0.4581-0.4581
Parent before exceptional gains and
losses
2283. Accounting Data Differences under PRC GAAP and Those under IFRSs
（1）Differences between Disclosed Net Profits and Net Assets in Financial Report in accordance with
International Accounting Standards and Chinese Accounting Standards
□ Applicable √ Not applicable
（2）Differences between Disclosed Net Profits and Net Assets in Financial Report in accordance with
Domestic Accounting Standards and Chinese Accounting Standards
□ Applicable √ Not applicable
（3）Explain Reasons for the Differences between Accounting Data Under Domestic and Overseas
Accounting Standards; for Any Adjustment Made to the Difference Existing in the Data Audited by the
Foreign Auditing Agent Such Foreign Auditing Agent's Name Shall Be Clearly Stated.□ Applicable √ Not applicable
229
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