Konka Group Co. Ltd. First Quarterly Report 2024

Stock Code: 000016 200016 Stock Name: Konka Group-A Konka Group-B Announcement No. 2024-26

Bond Code: 133003 133040 Bond Name: 21 Konka 02 21 Konka 03

149987 133306 22 Konka 01 22 Konka 03

133333 133759 22 Konka 05 24 Konka 01

133782 133783 24 Konka 02 24 Konka 03

KONKA GROUP CO. LTD.FIRST QUARTERLY REPORT 2024

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

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

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

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

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

Report are true accurate and complete and free of any misrepresentations misleading statements

or material omissions and collectively and individually accept legal responsibility for such

contents.

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

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

carried in this Report are factual accurate and complete.

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

independent auditor.□Yes √ No

I Key Financial Information

(I) Key Accounting Data and Financial Indicators

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

Q1 2024 Q1 2023 YoY change (%)

Operating revenue (RMB) 2462543024.65 4600647851.61 -46.47%

Net profit attributable to the listed

-510139620.27152513923.41-434.49%

company’s shareholders (RMB)

Net profit attributable to the listed

company’s shareholders before -466504771.56 -521453718.40 10.54%

exceptional gains and losses (RMB)

1Konka Group Co. Ltd. First Quarterly Report 2024

Net cash generated from/used in

-571044205.67-1182725927.0251.72%

operating activities (RMB)

Basic earnings per share (RMB/share) -0.2119 0.0633 -434.76%

Diluted earnings per share (RMB/share) -0.2119 0.0633 -434.76%

Weighted average return on equity (%) -9.47% 1.98% -11.45%

31 March 2024 31 December 2023 Change (%)

Total assets (RMB) 36105995398.58 35824818212.66 0.78%

Equity attributable to the listed

5134506327.365644401184.65-9.03%

company’s shareholders (RMB)

(II) Exceptional Gains and Losses

√ Applicable □ Not applicable

Unit: RMB

Item Q1 2024 Note

Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) 31613841.28

Government grants recognised in profit or loss (exclusive of those that are closely related to the

Company's normal business operations and given in accordance with defined criteria and in 18800867.09

compliance with government policies and have a continuing impact on the Company's profit or loss)

Gain or loss on fair-value changes in financial assets and liabilities held by a non-financial enterprise

as well as on disposal of financial assets and liabilities (exclusive of the effective portion of hedges -146270116.83

that is related to the Company's normal business operations)

Gain/loss on entrustment loans 31577430.49

Other non-operating income and expense other than the above 1718260.18

Other items that meet the definition of exceptional gain/loss -324424.08

Less: Income tax effects -21600918.48

Non-controlling interests effects (after tax) 2351625.32

Total -43634848.71 --

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

√ Applicable □ Not applicable

Item Amount (RMB) Reason

Discounted interest on

-324424.08 Discounted interest on notes meeting derecognition conditions

derecognized notes

Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in

the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their

Securities to the Public—Exceptional Gain/Loss Items:

√ Applicable □ Not applicable

Item Amount (RMB) Reason

Government grants continuously given in the Company’s

Tax rebates on software 904168.31 ordinary course of business at fixed quotas or amounts as per the

government’s policies and standards

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

√ Applicable □ Not applicable Unit: RMB

Change

Item 31 March 2024 1 January 2024 Explanation of why

(%)

Trading financial Change in fair value of trading financial assets

319674803.13469636700.78-31.93%

assets held by the Company in the Reporting Period

Taxes payable 122723241.91 214417135.87 -42.76% Payment of taxes in the Reporting Period

During the reporting period the company newly

Bonds payable 4752749719.12 2426992578.67 95.83%

issued non-public corporate bonds

Change

Item Q1 2024 Q1 2023 Explanation of why

(%)

2Konka Group Co. Ltd. First Quarterly Report 2024

YoY decrease in revenue scale due to that the

Operating Company adjusted and optimized non-core

2462543024.654600647851.61-46.47%

revenue business with weak synergy with the main

business in the Reporting Period

Increase in exchange gain due to exchange rate

Finance costs 150671423.77 246687141.44 -38.92%

fluctuation in the Reporting Period

YoY decrease in government grants received in

Other income 19705035.40 40112945.00 -50.88%

the Reporting Period

In the same period of last year due to the

change of accounting method of part of the

Return on equity of the company's subordinate

18497683.98816925419.92-97.74%

investment shareholding enterprises a large amount of

investment income was generated and there was

no such event in this reporting period

In the same period of last year due to the

Net profit change of accounting method of part of the

attributable to the equity of the company's subordinate

-510139620.27152513923.41-434.49%

listed company’s shareholding enterprises a large amount of

shareholders investment income was generated and there was

no such event in this reporting period

Net profit

attributable to the

YoY increase in gross profit due to

listed company’s

improvement of the Company’s main business

shareholders -466504771.56 -521453718.40 10.54%

operation such as color TV in the Reporting

before Period

exceptional gains

and losses

Net cash

generated YoY decrease in cash paid by the Company for

from/used in -571044205.67 -1182725927.02 51.72% purchasing goods and receiving labor services in

operating the Reporting Period

activities

Net cash

generated

YoY decrease in cash from disinvestment and

from/used in -265479143.12 -162066625.49 -63.81%

other cash received related to investing activities

investing

activities

Net cash

generated

During the reporting period the company newly

from/used in 1101905265.20 644111382.40 71.07%

issued non-public corporate bonds

financing

activities

II Shareholder Information

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

Rights as well as Holdings of Top 10 Shareholders

Unit: share

Number of ordinary shareholders 86690 Number of preference shareholders with resumed voting rights (if any) 0

Top 10 shareholders (exclusive of shares lent in refinancing)

Shareholdi Restricted Shares in pledge

Total shares

Name of shareholder Nature of shareholder ng shares marked or frozen

held

percentage held Status Shares

OVERSEAS CHINESE TOWN

State-owned legal person 21.75% 523746932 0.00

HOLDINGS COMPANY

CITIC SECURITIES

BROKERAGE (HONG KONG) Foreign legal person 7.48% 180001110 0.00

CO. LTD.GUOYUAN SECURITIES

Foreign legal person 2.48% 59606543 0.00

BROKER (HK) CO. LTD.HOLY TIME GROUP LIMITED Foreign legal person 2.38% 57289100 0.00

WANG JINGFENG Domestic natural person 1.73% 41700000 0.00

3Konka Group Co. Ltd. First Quarterly Report 2024

GAOLING FUNDL.P. Foreign legal person 1.39% 33500973 0.00

NAM NGAI Foreign natural person 0.96% 23000000 0.00

ZHANG SUFEN Domestic natural person 0.95% 22900000 0.00

CHINA MERCHANTS

State-owned legal person 0.83% 19865520 0.00

SECURITIES (HK) LIMITED

BOCOM INTERNATIONAL

Foreign legal person 0.78% 18896037 0.00

SECURITIES LIMITED

Top 10 unrestricted shareholders

Unrestricted ordinary shares Shares by class

Name of shareholder

held Class Shares

OVERSEAS CHINESE TOWN

523746932 RMB-denominated ordinary share 523746932

HOLDINGS COMPANY

CITIC SECURITIES

BROKERAGE (HONG KONG) 180001110 Domestically listed foreign share 180001110

CO. LTD.GUOYUAN SECURITIES

59606543 Domestically listed foreign share 59606543

BROKER (HK) CO. LTD.HOLY TIME GROUP LIMITED 57289100 Domestically listed foreign share 57289100

WANG JINGFENG 41700000 RMB-denominated ordinary share 41700000

GAOLING FUNDL.P. 33500973 Domestically listed foreign share 33500973

NAM NGAI 23000000 Domestically listed foreign share 23000000

ZHANG SUFEN 22900000 RMB-denominated ordinary share 22900000

CHINA MERCHANTS

19865520 Domestically listed foreign share 19865520

SECURITIES (HK) LIMITED

BOCOM INTERNATIONAL

18896037 Domestically listed foreign share 18896037

SECURITIES LIMITED

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

shareholder Overseas Chinese Town Holdings Company (“OCT Group” for short) holds

180001110 and 18360000 ordinary shares in the Company respectively through CITIC

Related or acting-in-concert parties

Securities Brokerage (Hong Kong) Co. Ltd. and China Merchants Securities (HK) Limited.among shareholders above

Happy Bloom Investment Limited and Overseas Chinese Town Holdings Company are parties

acting in concert. Other than that it is unknown whether the other shareholders are related

parties or acting-in-concert parties or not.Top 10 shareholders involved in Wang Jingfeng holds 41700000 A-shares in the Company through his securities account for

securities margin trading (if any) customer credit trading guarantee in Guotai Junan Securities Co. Ltd.

4Konka Group Co. Ltd. First Quarterly Report 2024

5% or greater shareholders top 10 shareholders and Top 10 unrestricted shareholders involved in

refinancing shares lending

□Applicable √ Not applicable

Changes in top 10 shareholders and top 10 unrestricted shareholders due to refinancing shares

lending/return compared with the prior period

□Applicable √ Not applicable

(II) Number of Preference Shareholders and Shareholdings of Top 10 of Them

□Applicable √ Not applicable

III Other Significant Events

√ Applicable □ Not applicable

Corporate bond issue: As for the private placement of corporate bonds of RMB2.3 billion by the

Company RMB1.5 billion and RMB0.8 billion were issued respectively on 29 January 2024 and

18 March 2024.

IV Quarterly Financial Statements

(I) Financial Statements

1. Consolidated Balance Sheet

Prepared by Konka Group Co. Ltd.

31 March 2024

Unit: RMB

Item 31 March 2024 1 January 2024

Current assets:

Monetary assets 6820644045.71 6506359577.02

Settlement reserve

Loans to other banks and financial institutions

Held-for-trading financial assets 319674803.13 469636700.78

Derivative financial assets

Notes receivable 606068655.73 533171949.15

Accounts receivable 1699616201.41 1726545973.08

Receivables financing 140600503.41 173396326.14

Prepayments 135298765.75 165454311.51

Premiums receivable

Reinsurance receivables

Receivable reinsurance contract reserve

Other receivables 978368964.07 989121067.51

Including: Interest receivable 7514518.74 6681258.01

Dividends receivable 941482.38

Financial assets purchased under resale agreements

Inventories 3532976234.92 3249897700.98

Including: Data resource

Contract assets 2321661.43 2190385.93

Assets held for sale

Current portion of non-current assets

Other current assets 2318548695.56 2359159468.75

Total current assets 16554118531.12 16174933460.85

Non-current assets:

Loans and advances to customers

Debt investments

5Konka Group Co. Ltd. First Quarterly Report 2024

Other debt investments

Long-term receivables

Long-term equity investments 5542281345.02 5566483863.29

Investments in other equity instruments 23841337.16 23841337.16

Other non-current financial assets 2012668178.82 2009676398.00

Investment property 1507942882.75 1470226723.87

Fixed assets 5166405622.88 5218297745.16

Construction in progress 801532745.91 860899498.68

Productive living assets

Oil and gas assets

Right-of-use assets 178946935.99 197054423.17

Intangible assets 1068063044.96 1087386015.34

Including: Data resource

Development costs

Including: Data resource

Goodwill 22196735.11 22196735.11

Long-term prepaid expense 505108516.65 518919223.71

Deferred income tax assets 1429778839.91 1426573982.16

Other non-current assets 1293110682.30 1248328806.16

Total non-current assets 19551876867.46 19649884751.81

Total assets 36105995398.58 35824818212.66

Current liabilities:

Short-term borrowings 6632256478.89 6390592056.27

Borrowings from the central bank

Loans from other banks and financial institutions

Held-for-trading financial liabilities

Derivative financial liabilities

Notes payable 1098341710.09 990482927.20

Accounts payable 2504095300.96 2726831675.97

Advances from customers

Contract liabilities 515389271.82 527975160.12

Financial assets sold under repurchase agreements

Customer deposits and deposits from other banks and

financial institutions

Payables for acting trading of securities

Payables for underwriting of securities

Employee benefits payable 215324731.84 304733103.63

Taxes and levies payable 122723241.91 214417135.87

Other payables 1745202888.86 1922791905.14

Including: Interest payable

Dividends payable

Fees and commissions payable

Reinsurance payables

Liabilities directly associated with assets held for sale

Current portion of non-current liabilities 4810206203.77 5314147396.36

Other current liabilities 42298997.18 54330715.75

Total current liabilities 17685838825.32 18446302076.31

Non-current liabilities:

Insurance contract reserve

Long-term borrowings 7084826330.88 7779150079.88

Bonds payable 4752749719.12 2426992578.67

Including: Preference shares

Perpetual bonds

Lease liabilities 153601632.01 160218818.92

Long-term payables 5490154.71 6135734.07

Long-term employee benefits payable 4697158.27 4718466.37

Provisions 315033062.96 304519839.80

6Konka Group Co. Ltd. First Quarterly Report 2024

Deferred income 424131344.78 425135237.90

Deferred income tax liabilities 143885442.76 185026165.27

Other non-current liabilities 176716445.59 179996351.33

Total non-current liabilities 13061131291.08 11471893272.21

Total liabilities 30746970116.40 29918195348.52

Owners’ equity:

Share capital 2407945408.00 2407945408.00

Other equity instruments

Including: Preference shares

Perpetual bonds

Capital reserves 526499506.76 526499506.76

Less: Treasury stock

Other comprehensive income -13198795.46 -13443558.44

Specific reserve 4657488.24 4657488.24

Surplus reserves 1244180364.24 1244180364.24

General reserve

Retained earnings 964422355.58 1474561975.85

Total equity attributable to owners of the Company as the

5134506327.365644401184.65

parent

Non-controlling interests 224518954.82 262221679.49

Total owners’ equity 5359025282.18 5906622864.14

Total liabilities and owners’ equity 36105995398.58 35824818212.66

Legal representative: Zhou Bin CFO: Li Chunlei Head of the financial department: Ping Heng

2. Consolidated Income Statement

Unit: RMB

Item Q1 2024 Q1 2023

1. Revenues 2462543024.65 4600647851.61

Including: Operating revenue 2462543024.65 4600647851.61

Interest revenue

Insurance premium income

Fee and commission income

2. Costs and expenses 2979057163.11 5278599377.48

Including: Cost of sales 2284831875.00 4451814449.75

Interest costs

Fee and commission expense

Surrenders

Net insurance claims paid

Net amount provided as insurance contract reserve

Expenditure on policy dividends

Reinsurance premium expense

Taxes and levies 26135722.56 23526112.70

Selling expense 248336076.88 249669243.57

Administrative expense 157257013.15 200548687.25

R&D expense 111825051.75 106353742.77

Finance costs 150671423.77 246687141.44

Including: Interest costs 203822796.42 224916477.38

Interest revenue 61269104.93 59467053.77

Add: Other income 19705035.40 40112945.00

Return on investment (“-” for loss) 18497683.98 816925419.92

Including: Share of profit or loss of joint ventures and

-16852518.27-16602829.69

associates

Income from the derecognition of financial assets

-119757.38

at amortized cost (“-” for loss)

Exchange gain (“-” for loss)

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

Gain on changes in fair value (“-” for loss) -149961897.65

7Konka Group Co. Ltd. First Quarterly Report 2024

Credit impairment loss (“-” for loss) 14836754.80 -2853517.25

Asset impairment loss (“-” for loss) -6050004.45 -706509.70

Asset disposal income (“-” for loss) 368011.21 -265897.79

3. Operating profit (“-” for loss) -619118555.17 175260914.31

Add: Non-operating income 2439964.07 10265709.63

Less: Non-operating expense 1458719.33 2437470.87

4. Gross profit (“-” for loss) -618137310.43 183089153.07

Less: Income tax expense -39279655.99 92022318.91

5. Net profit (“-” for net loss) -578857654.44 91066834.16

5.1 By operating continuity

5.1.1 Net profit from continuing operations (“-” for net loss) -578857654.44 91066834.16

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

loss)

5.2 By ownership

5.2.1 Net profit attributable to owners of the Company as

-510139620.27152513923.41

the parent

5.2.1 Net profit attributable to non-controlling interests -68718034.17 -61447089.25

6. Other comprehensive income net of tax 286707.16 -305458.61

Attributable to owners of the Company as the parent 244762.98 -1045825.23

6.1 Items that will not be reclassified to profit or loss

6.1.1 Changes caused by remeasurements on defined

benefit schemes

6.1.2 Other comprehensive income that will not be

reclassified to profit or loss under the equity method

6.1.3 Changes in the fair value of investments in other

equity instruments

6.1.4 Changes in the fair value arising from changes in own

credit risk

6.1.5 Other

6.2 Items that will be reclassified to profit or loss 244762.98 -1045825.23

6.2.1 Other comprehensive income that will be reclassified

to profit or loss under the equity method

6.2.2 Changes in the fair value of other debt investments

6.2.3 Other comprehensive income arising from the

reclassification of financial assets

6.2.4 Credit impairment allowance for other debt

investments

6.2.5 Reserve for cash flow hedges

6.2.6 Differences arising from the translation of foreign

244762.98-1045825.23

currency-denominated financial statements

6.2.7 Other

Attributable to non-controlling interests 41944.18 740366.62

7. Total comprehensive income -578570947.28 90761375.55

Attributable to owners of the Company as the parent -509894857.29 151468098.18

Attributable to non-controlling interests -68676089.99 -60706722.63

8. Earnings per share

8.1 Basic earnings per share -0.2119 0.0633

8.2 Diluted earnings per share -0.2119 0.0633

Legal representative: Zhou Bin CFO: Li Chunlei Head of the financial department: Ping Heng

3. Consolidated Cash Flow Statement

Unit: RMB

Item Q1 2024 Q1 2023

1. Cash flows from operating activities:

Proceeds from sale of commodities and rendering of

1797484722.814577159145.45

services

Net increase in customer deposits and deposits from other

banks and financial institutions

Net increase in borrowings from the central bank

Net increase in loans from other financial institutions

8Konka Group Co. Ltd. First Quarterly Report 2024

Premiums received on original insurance contracts

Net proceeds from reinsurance

Net increase in deposits and investments of policy holders

Interest fees and commissions received

Net increase in loans from other banks and financial

institutions

Net increase in proceeds from repurchase transactions

Net proceeds from acting trading of securities

Tax and levy rebates 115078788.77 64819428.29

Cash generated from other operating activities 95525932.14 121196319.41

Subtotal of cash generated from operating activities 2008089443.72 4763174893.15

Payments for commodities and services 1734228523.22 4794630422.89

Net increase in loans and advances to customers

Net increase in deposits in the central bank and other

banks and financial institutions

Payments for claims on original insurance contracts

Net increase in loans to other banks and financial

institutions

Interest fees and commissions paid

Policy dividends paid

Cash paid to and for employees 476425284.19 571153686.19

Taxes and levies paid 112876803.64 186102399.10

Cash used in other operating activities 255603038.34 394014311.99

Subtotal of cash used in operating activities 2579133649.39 5945900820.17

Net cash generated from/used in operating activities -571044205.67 -1182725927.02

2. Cash flows from investing activities:

Proceeds from disinvestment 277786299.25

Return on investment 8900401.01 39420914.22

Net proceeds from the disposal of fixed assets intangible

5041.031578239.32

assets and other long-lived assets

Net proceeds from the disposal of subsidiaries and other

18818889.67

business units

Cash generated from other investing activities 9793699.45 207505754.25

Subtotal of cash generated from investing activities 18699141.49 545110096.71

Payments for the acquisition of fixed assets intangible

284178284.61363745861.03

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 343430861.17

Subtotal of cash used in investing activities 284178284.61 707176722.20

Net cash generated from/used in investing activities -265479143.12 -162066625.49

3. Cash flows from financing activities:

Capital contributions received 256756.76 345946.00

Including: Capital contributions by non-controlling interests

256756.76345946.00

to subsidiaries

Borrowings received 6140193236.06 3805114522.05

Cash generated from other financing activities 131547249.19 54574868.72

Subtotal of cash generated from financing activities 6271997242.01 3860035336.77

Repayment of borrowings 4797944997.38 2923642749.55

Interest and dividends paid 151237909.05 164669602.27

Including: Dividends paid by subsidiaries to non-

controlling interests

Cash used in other financing activities 220909070.38 127611602.55

Subtotal of cash used in financing activities 5170091976.81 3215923954.37

Net cash generated from/used in financing activities 1101905265.20 644111382.40

4. Effect of foreign exchange rates changes on cash and

-2015284.90-7901003.24

cash equivalents

9Konka Group Co. Ltd. First Quarterly Report 2024

5. Net increase in cash and cash equivalents 263366631.51 -708582173.35

Add: Cash and cash equivalents beginning of the period 5674784349.55 5461912010.90

6. Cash and cash equivalents end of the period 5938150981.06 4753329837.55

(II) Adjustments to Financial Statement Items at the Beginning of the Year of the First

Implementation of the New Accounting Standards Implemented since 2024

□ Applicable √ Not applicable

(III) Independent Auditor’s Report

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

auditor.□Yes √ No

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

Konka Group Co. Ltd

26 April 2024

10