深康佳B:2020年第一季度报告全文(英文版)查看PDF公告

股票简称:深康佳A 股票代码:000016

Konka Group Co., Ltd. First Quarter Report 2020
1
KONKAGROUP CO., LTD.
FIRST QUARTER REPORT 2020
2020-36
April 2020
Konka Group Co., Ltd. First Quarter Report 2020
2
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of Konka Group Co., Ltd. (hereinafter referred to as the
“Company”) hereby guarantee the factuality, accuracy and completeness of the contents of
this Report and its summary, and shall be jointly and severally liable for any
misrepresentations, misleading statements or material omissions therein.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Liu Fengxi, the Company’s legal representative, Li Chunlei, the Company’s Chief Financial
Officer (CFO), and Feng Junxiu, head of the Company’s financial department (equivalent to
financial manager) hereby guarantee that the Financial Statements carried in this Report are
factual, accurate and complete.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.
Konka Group Co., Ltd. First Quarter Report 2020
3
Part II Key Corporate Information
I Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
Q1 2020 Q1 2019 Change (%)
Operating revenue (RMB) 7,806,520,237.49 10,772,118,842.18 -27.53%
Net profit attributable to the listed
company’s shareholders (RMB)
-220,602,940.37 85,566,720.43 -357.81%
Net profit attributable to the listed
company’s shareholders before
exceptional items (RMB)
-333,520,116.21 -418,684,690.19 20.34%
Net cash generated from/used in
operating activities (RMB)
-1,031,223,468.58 -540,740,144.72 -90.71%
Basic earnings per share (RMB/share) -0.0916 0.0355 -358.03%
Diluted earnings per share (RMB/share) -0.0916 0.0355 -358.03%
Weighted average return on equity (%) -2.77% 1.05% -3.82%
31 March 2020 31 December 2019 Change (%)
Total assets (RMB) 44,151,457,346.04 42,586,955,452.27 3.67%
Equity attributable to the listed
company’s shareholders (RMB)
7,846,689,489.69 8,068,505,598.13 -2.75%
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item Q1 2020 Note
Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) -149,388.59
Government subsidies recognized in the current period, except for those acquired in the ordinary
course of business or granted at certain quotas or amounts according to the government’s unified
standards
93,148,568.70
Gain/Loss on entrusting others with investments or asset management 30,927,327.63
Konka Group Co., Ltd. First Quarter Report 2020
4
Gain/Loss on changes in fair value arising from holding of held-for-trading financial assets and
liabilities, derivative financial assets and liabilities and investment income from disposal of
held-for-trading financial assets and liabilities, derivative financial assets and liabilities, other
debt obligations other than effective hedge business related to the Company’s normal operating
businesses
21,639,153.64
Gain or loss on loan entrustments 426,624.74
Non-operating income and expense other than the above 643,137.73
Less: Income tax effects 21,397,677.10
Non-controlling interests effects (net of tax) 12,320,570.91
Total 112,917,175.84 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or
listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering
Their Securities to the Public—Exceptional Gain/Loss Items:
√ Applicable □ Not applicable
Item Amount (RMB) Reason
Tax rebates on software 4,486,602.24
Government subsidies given in the Company’s ordinary course of business
at fixed quotas or amounts as per government’s uniform standards
II Total Number of Shareholders and Holdings of Top 10 Shareholders at 31 March 2020
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting
Rights as well as Holdings of Top 10 Shareholders
Unit: share
Number of ordinary shareholders
at the period-end
162,694
Number of preferred shareholders with resumed
voting rights at the period-end (if any)
0
Top 10 shareholders
Name of shareholder
Nature of
shareholder
Shareholding
percentage
Total shares
held
Restricted
shares
held
Shares in pledge
or frozen
Status Shares
OVERSEAS CHINESE TOWN
ENTERPRISES CO., LTD
State-owned
legal person
21.75% 523,746,932 0
CITIC SECURITIES BROKERAGE
(HONG KONG) CO., LTD.
Foreign legal
person
7.56% 182,100,202 0
GUOYUAN SECURITIES BROKER
(HK) CO., LTD.
Foreign legal
person
2.47% 59,497,225 0
HOLY TIME GROUP LIMITED
Foreign legal
person
2.33% 56,139,100 0
GAOLING FUND,L.P.
Foreign legal
person
2.19% 52,801,250 0
Konka Group Co., Ltd. First Quarter Report 2020
5
HUA LIFE INSURANCE CO.,LTD.

SELF-OWNED FUNDS
Other 2.12% 50,987,841 0
NAM NGAI
Foreign
natural person
0.92% 22,063,940 0
CHINAMERCHANTS SECURITIES
(HK) LIMITED
State-owned
legal person
0.83% 20,000,120 0
Haitong International Securities Company
Limited-Account Client
Foreign legal
person
0.52% 12,452,154 0
SPDR Portfolio Emerging Markets ETF
Foreign legal
person
0.46% 11,131,563 0
Top 10 unrestricted shareholders
Name of shareholder
Unrestricted
shares held
Shares by type
Type Shares
OVERSEAS CHINESE TOWN ENTERPRISES CO.,
LTD
523,746,932 RMB-denominated ordinary stock 523,746,932
CITIC SECURITIES BROKERAGE (HONG KONG)
CO., LTD.
182,100,202 Domestically listed foreign stock 182,100,202
GUOYUAN SECURITIES BROKER (HK) CO., LTD. 59,497,225 Domestically listed foreign stock 59,497,225
HOLY TIME GROUP LIMITED 56,139,100 Domestically listed foreign stock 56,139,100
GAOLING FUND,L.P. 52,801,250 Domestically listed foreign stock 52,801,250
HUA LIFE INSURANCE CO.,LTD.-SELF-OWNED
FUNDS
50,987,841 RMB-denominated ordinary stock 50,987,841
NAM NGAI 22,063,940 Domestically listed foreign stock 22,063,940
CHINAMERCHANTS SECURITIES (HK) LIMITED 20,000,120 Domestically listed foreign stock 20,000,120
Haitong International Securities Company
Limited-Account Client
12,452,154 Domestically listed foreign stock 12,452,154
SPDR Portfolio Emerging Markets ETF 11,131,563 Domestically listed foreign stock 11,131,563
Related or
acting-in-concert
parties among the
shareholders above
Happy Bloom Investment Limited, a wholly-owned subsidiary of the Company’s first majority
shareholder Overseas Chinese Town Enterprises Co. (“OCT Group” for short), holds 180,001,110 and
18,360,000 ordinary shares in the Company respectively through CITIC Securities Brokerage (Hong
Kong) Co., Ltd. and China Merchants Securities (HK) Limited. Happy Bloom Investment Limited and
Overseas Chinese Town Enterprises Co. 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 ordinary
shareholders
involved in
securities margin
trading (if any)
None
Konka Group Co., Ltd. First Quarter Report 2020
6
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted
ordinary shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yes √ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
Konka Group Co., Ltd. First Quarter Report 2020
7
Part III Significant Events
I Changes in Key Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
(I) During the Reporting Period, the Company carried on with its long-term development strategy of
“Technology + Industry + Park”. It kept increasing investments in R&D and branding, as well as
restructuring the business. Meanwhile, it improved the operating system, enhanced basic
management, strengthened risk control and adopted a series of measures to reduce costs and
increase efficiency, with the purpose of achieving high-quality, sustained development. During the
Reporting Period, the project of Research and Industrialization of Key Technologies of the Next
Generation Internet Smart Terminal held by the Company won the Second Prize of Guangdong
Scientific and Technological Progress Award after receiving one national scientific and
technological award and three provincial ministerial-level scientific and technological progress
awards in 2019.
Affected by the COVID-19 outbreak, the Company encountered, after the Spring Festival holidays,
such problems as insufficient utilization rates of factories, increasing labor cost, limited logistics in
supply of raw materials and declining market demand. These problems have caused a considerable
year-on-year decline in operating revenue. Together with fiercer market competition and the high
fixed costs and expenses, the Company recorded loss to some extent in Q1 2020.
(II) Changes in Key Financial Statement Line Items
Unit: RMB’0,000
Item 31 March 2020 1 January 2020 Amount of change Change (%) Explanation of why
Fixed assets 210,335.87 256,125.42 -45,789.55 -17.88%
The transfer of fixed assets into
construction in progress due to
transformation and upgrading during
the Reporting Period
Construction in
progress
483,452.15 429,154.44 54,297.71 12.65%
Item Q1 2020 Q1 2019 Amount of change Change (%) Explanation of why
Operating revenue
780,652.02 1,077,211.88 -296,559.86 -27.53%The operating revenue and cost of
sales decreased for the Reporting
Period affected by the epidemic
Cost of sales 723,973.11 1,015,581.43 -291,608.32 -28.71%
R&D expense 8,953.97 6,048.84 2,905.13 48.03%
The Company continued to strengthen
the input in research and development
Finance costs
17,914.00 27,809.24 -9,895.24 -35.58%
YoY increase in gains on foreign
exchange
Net cash generated
from/used in
operating activities
-103,122.35 -54,074.01 -49,048.34 -90.71%
The increase in inventories for the
Reporting Period
Konka Group Co., Ltd. First Quarter Report 2020
8
Net cash generated
from/used in
investing activities
-49,585.52 -117,475.06 67,889.54 57.79%
No large investments for the
Reporting Period
II Progress, Influence and Solutions with regard to Significant Events
√ Applicable □ Not applicable
(I) Private placement of corporate bonds: So far, RMB600 million of privately placed corporate
bonds are in the process.
(II) The application for a private placement of A-shares has been accepted by the CSRC for
examination on 20 May 2019. The Company has replied to the feedbacks of the CSRC and
disclosed such replies. Currently, this matter is still being examined by the CSRC. And it is
uncertain whether it will be approved or not.
(III) Konka Chuzhou Smart Appliances and Equipment Industrial Park and Yibin Smart Terminal
High-Tech Industrial Park have obtained the project land, and the roofs of the main factories have
been sealed. Dongguan Konka Smart Industrial Park, Chongqing Konka Semiconductor
Optoelectronic Industrial Park and Yancheng Semiconductor Closed Beta Test Base and Suining
Konka Electronic Technology Industrial Park have obtained the project land and are under
construction. Guxian Green Technology Town is in preparation and waiting to bid for the target land
in a government audition.
(IV) Launching and establishing funds: So far, Orient Konka Industrial M & A Fund respectively
holds 7.75% of shares in Jiangxi Yahua Electronic Materials Co., Ltd., 2.75% of shares in Shenzhen
Genew Technologies Co., Ltd., 3.65% of shares in Roshow Technology Co., Ltd., and 11.73% of
shares in Shenzhen Gren RF Communication Co., Ltd. through investments. Emerging Industry
Development Investment Fund is in the stage of promoting affairs related to industrial and
commercial registration. The affair of Wuzhen Jiayu Digital Economy Industrial Fund still needs to
be submitted to the general meeting of Konka Group for review.
Summary of the significant event Disclosure date Index to the related announcement
Private placement of A-Stocks 10 September 2019
http://www.cninfo.com.cn/new/index
Private placement of corporate bonds 18 September 2019
Investment and construction of Dongguan Konka
Smart Industrial Park
11 March 2017
Investment and construction of Konka Chuzhou
Smart Appliances and Equipment Industrial Park
5 December 2018
Investment and construction of Yibin Smart
Terminal High-Tech Industrial Park
16 December 2017
Investment and construction of Suining Konka
Electronic Technology Industrial Park
17 October 2018
Konka Group Co., Ltd. First Quarter Report 2020
9
Progress of any share repurchase:
□ Applicable √ Not applicable
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable √ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties,
Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during the
Reporting Period
□Applicable √ Not applicable
No such cases in the Reporting Period.
IV Securities Investments
□Applicable √ Not applicable
No such cases in the Reporting Period.
V Cash Entrusted for Wealth Management
√ Applicable □ Not applicable
Unit: RMB'0,000
Specific type Capital resources Amount incurred Undue Balance Overdue amount
Bank financial
products
Self-owned funds 0 1,756.17 0
Total 0
1,756.17
0
Details of the single major amount, or high-risk trust investment with low security, poor fluidity and
non-guaranteed
□ Applicable √ Not applicable
Cash Entrusted for Wealth Management expected to be unable to recover the principal or
impairment might be occurred
□ Applicable √ Not applicable
Investment and construction of Chongqing Konka
Semiconductor Optoelectronic Industrial Park
9 October 2019
Investment and construction of Yancheng
Semiconductor Closed Beta Base
26 November 2019
Orient Konka Industrial M &A Fund 7 September 2018
Emerging Industry Development Investment Fund 4 March 2020
Wuzhen Jiayu Digital Economy Industrial Fund 28 March 2020
Konka Group Co., Ltd. First Quarter Report 2020
10
VI Investments in Derivative Financial Instruments
□Applicable √ Not applicable
No such cases in the Reporting Period.
VII Communications with the Investment Community such as Researches, Inquiries and
Interviews during the Reporting Period
√ Applicable □ Not applicable
Date Way of communication
Type of
communication party
Index to main information communicated
2 January 2020 On-site Institution http://www.cninfo.com.cn/new/index
VIII Irregularities in the Provision of Guarantees
□Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Capital by the Controlling Shareholder or Its Related
Parties for Non-Operating Purposes
□Applicable √ Not applicable
No such cases in the Reporting Period.
Konka Group Co., Ltd. First Quarter Report 2020
11
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by Konka Group Co., Ltd.
31 March 2020
Unit: RMB
Item 31 March 2020 31 December 2019
Current assets:
Monetary assets 7,714,170,053.73 6,599,360,051.61
Settlement reserve
Interbank loans granted
Held-for-trading financial assets
61,494,666.97
Derivative financial assets
Notes receivable
2,477,768,953.45 2,838,041,432.89
Accounts receivable 4,562,828,525.65 4,416,179,657.87
Accounts receivable financing
133,315,265.89 143,174,271.82
Prepayments 2,124,569,851.91 2,072,550,811.86
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables
1,834,879,169.24 1,772,183,366.49
Including: Interest receivable 17,074,238.98 7,807,400.40
Dividends receivable
547,848.62 547,848.62
Financial assets purchased under
resale agreements
Inventories
6,015,858,038.82 5,318,503,044.69
Contractual assets
Assets classified as held for sale
Current portion of non-current
assets
123,735,055.72 108,087,016.22
Other current assets 1,769,219,709.71 2,093,212,552.25
Total current assets
26,756,344,624.12 25,422,786,872.67
Konka Group Co., Ltd. First Quarter Report 2020
12
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt
obligations
Long-term receivables 406,924,720.01 410,509,555.85
Long-term equity investments 3,456,701,196.89 3,465,541,196.89
Investments in other equity
instruments
21,642,170.36 21,642,170.36
Other non-current financial assets 1,744,356,781.32 1,753,121,727.83
Investment property 396,925,137.69 400,197,374.07
Fixed assets 2,103,358,697.37 2,561,254,191.55
Construction in progress 4,834,521,494.81 4,291,544,368.52
Productive living assets
Oil and gas assets
Use rights assets
Intangible assets 1,222,375,289.88 1,213,271,713.22
R&D expense
Goodwill 779,260,296.41 779,260,296.41
Long-term prepaid expense 133,553,884.93 107,590,078.88
Deferred income tax assets 1,020,924,915.89 987,763,182.17
Other non-current assets 1,274,568,136.36 1,172,472,723.85
Total non-current assets 17,395,112,721.92 17,164,168,579.60
Total assets 44,151,457,346.04 42,586,955,452.27
Current liabilities:
Short-term borrowings 11,812,886,919.46 10,332,687,239.63
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable 1,302,270,306.84 1,319,396,374.37
Accounts payable 5,537,977,204.94 5,797,822,479.60
Advances from customers 1,076,856,387.08
Contractual liabilities 935,642,967.45
Konka Group Co., Ltd. First Quarter Report 2020
13
Financial assets sold under
repurchase agreements
Customer deposits and interbank
deposits
Payables for acting trading of
securities
Payables for underwriting of
securities
Payroll payable 310,238,736.14 426,870,498.58
Taxes payable
178,236,124.27 607,845,294.99
Other payables 2,356,212,848.01 2,374,287,243.20
Including: Interest payable
165,752,944.91 227,831,108.53
Dividends payable
Handling charges and commissions
payable
Reinsurance payables
Liabilities directly associated with
assets classified as held for sale
Current portion of non-current
liabilities
183,463,203.78 210,066,077.13
Other current liabilities
Total current liabilities 22,616,928,310.89 22,145,831,594.58
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
5,949,577,205.45 4,890,315,729.90
Bonds payable 4,989,085,429.81 4,987,709,643.64
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables 471,616,875.47 383,287,104.62
Long-term payroll payable
5,519,082.82 5,565,646.72
Provisions 206,591.51 206,591.51
Deferred income
149,162,764.81 151,874,258.45
Deferred income tax liabilities 106,504,224.21 95,467,096.05
Other non-current liabilities
117,318,235.28
Total non-current liabilities 11,788,990,409.36 10,514,426,070.89
Total liabilities
34,405,918,720.25 32,660,257,665.47
Konka Group Co., Ltd. First Quarter Report 2020
14
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 230,368,577.09 230,368,577.09
Less: Treasury stock
Other comprehensive income -22,506,271.59 -21,293,103.52
Specific reserve
Surplus reserves 1,211,721,109.67 1,211,721,109.67
General reserve
Retained earnings 4,019,160,666.52 4,239,763,606.89
Total equity attributable to owners of
the Company as the parent
7,846,689,489.69 8,068,505,598.13
Non-controlling interests
1,898,849,136.10 1,858,192,188.67
Total owners’ equity 9,745,538,625.79 9,926,697,786.80
Total liabilities and owners’ equity
44,151,457,346.04 42,586,955,452.27
Legal representative: Liu Fengxi CFO: Li Chunlei Head of the financial department: Feng Junxiu
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 March 2020 31 December 2019
Current assets:
Monetary assets 2,945,704,259.70 2,498,077,198.12
Held-for-trading financial assets
61,494,666.97
Derivative financial assets
Notes receivable
2,078,654,197.01 2,148,312,821.38
Accounts receivable 8,756,846,915.14 9,564,720,940.39
Accounts receivable financing
78,098,304.28 66,002,903.68
Prepayments 986,924,659.28 911,315,168.95
Other receivables
11,187,973,675.53 10,552,820,915.47
Including: Interest receivable 9,047,673.66 7,431,353.86
Dividends receivable
522,881,671.02 518,580,871.02
Inventories 244,043,528.66 218,644,308.47
Contractual assets
Assets classified as held for sale
Konka Group Co., Ltd. First Quarter Report 2020
15
Current portion of non-current
assets
Other current assets
931,697,245.84 1,096,689,897.40
Total current assets 27,209,942,785.44 27,118,078,820.83
Non-current assets:
Investments in debt obligations
Investments in other debt
obligations
Long-term receivables
Long-term equity investments
7,870,242,927.15 7,712,084,967.88
Investments in other equity
instruments
12,940,214.36 12,940,214.36
Other non-current financial assets
250,230,000.00 250,230,000.00
Investment property 396,925,137.69 400,197,374.07
Fixed assets
438,286,081.85 444,107,402.57
Construction in progress 46,155,023.23 40,933,270.51
Productive living assets
Oil and gas assets
Use rights assets
Intangible assets 78,538,036.27 80,470,750.60
R&D expense
Goodwill
Long-term prepaid expense
20,488,848.56 39,047,325.68
Deferred income tax assets 904,657,272.36 883,234,085.45
Other non-current assets
Total non-current assets 10,018,463,541.47 9,863,245,391.12
Total assets
37,228,406,326.91 36,981,324,211.95
Current liabilities:
Short-term borrowings
4,881,778,912.37 5,014,312,913.74
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable 3,169,512,375.84 2,610,991,473.69
Accounts payable
10,732,921,551.68 11,078,648,690.19
Advances from customers 318,839,961.84
Konka Group Co., Ltd. First Quarter Report 2020
16
Contractual liabilities 217,283,844.24
Payroll payable 94,423,693.88 125,402,307.95
Taxes payable 6,707,287.93 9,305,344.42
Other payables 3,413,245,965.44 3,193,392,734.69
Including: Interest payable 161,548,720.10 223,847,860.57
Dividends payable
Liabilities directly associated with
assets classified as held for sale
Current portion of non-current
liabilities
122,000,000.00 130,512,375.00
Other current liabilities
Total current liabilities 22,637,873,631.38 22,481,405,801.52
Non-current liabilities:
Long-term borrowings 3,443,317,205.45 3,438,055,729.90
Bonds payable
4,989,085,429.81 4,987,709,643.64
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
27,901,384.63 21,855,688.19
Long-term payroll payable
Provisions
206,591.51 206,591.51
Deferred income 56,342,096.55 59,545,839.30
Deferred income tax liabilities
Other non-current liabilities 148,791,740.47
Total non-current liabilities
8,665,644,448.42 8,507,373,492.54
Total liabilities 31,303,518,079.80 30,988,779,294.06
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 114,018,066.79 114,018,066.79
Less: Treasury stock
Other comprehensive income -2,682,217.31 -2,682,217.31
Specific reserve
Konka Group Co., Ltd. First Quarter Report 2020
17
Surplus reserves 1,227,564,785.19 1,227,564,785.19
Retained earnings 2,178,042,204.44 2,245,698,875.22
Total owners’ equity 5,924,888,247.11 5,992,544,917.89
Total liabilities and owners’ equity 37,228,406,326.91 36,981,324,211.95
3. Consolidated Income Statement
Unit: RMB
Item Q1 2020 Q1 2019
1. Revenue
7,806,520,237.49 10,772,118,842.18
Including: Operating revenue 7,806,520,237.49 10,772,118,842.18
Interest income
Premium income
Handling charge and
commission income
2. Costs and expenses 8,238,718,867.67 11,207,423,978.98
Including: Cost of sales 7,239,731,075.92 10,155,814,290.20
Interest expense
Handling charge and
commission expense
Surrenders
Net claims paid
Net amount provided as
policy reserve
Expenditure on policy
dividends
Reinsurance premium
expense
Taxes and surcharges 15,308,409.56 18,475,034.55
Selling expense
474,319,677.27 528,175,102.68
Administrative expense 240,679,941.63 166,378,779.54
R&D expense
89,539,723.57 60,488,366.07
Finance costs 179,140,039.72 278,092,405.94
Including: Interest
expense
299,701,187.78 270,257,047.31
Interest
income
75,521,808.48 42,801,685.68
Add: Other income 91,772,474.77 33,914,982.48
Konka Group Co., Ltd. First Quarter Report 2020
18
Return on investment (“-” for
loss)
54,859,916.67 266,889,127.97
Including: Share of profit or
loss of joint ventures and associates
5,251,729.37
Income from the
derecognition of financial assets at
amortized cost (“-” for loss)
Foreign exchange gain (“-” for
loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value
(“-” for loss)
-3,005,381.67
Credit impairment loss (“-” for
loss)
-1,851,680.71
Asset impairment loss (“-” for
loss)
1,008,713.42 4,958,806.66
Asset disposal income (“-” for
loss)
-21,776.59 293,705,640.64
3. Operating profit (“-” for loss)
-286,430,982.62 161,158,039.28
Add: Non-operating income 6,708,221.29 28,855,410.44
Less: Non-operating expense
329,999.39 4,995,457.15
4. Profit before tax (“-” for loss) -280,052,760.72 185,017,992.57
Less: Income tax expense
-5,687,275.24 26,564,577.49
5. Net profit (“-” for net loss) -274,365,485.48 158,453,415.08
5.1 By operating continuity
5.1.1 Net profit from continuing
operations (“-” for net loss)
-274,365,485.48 158,453,415.08
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 the parent
-220,602,940.37 85,566,720.43
5.2.1 Net profit attributable to
non-controlling interests
-53,762,545.11 72,886,694.65
6. Other comprehensive income, net of
tax
305,885.47 23,162,659.81
Attributable to owners of the
Company as the parent
-1,213,168.07 24,014,779.82
Konka Group Co., Ltd. First Quarter Report 2020
19
6.1 Items that will not be
reclassified to profit or loss
6.1.1 Changes caused by
remeasurements on defined benefit
pension 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
of the company’s credit risks
6.1.5 Other
6.2 Items that will be reclassified
to profit or loss
-1,213,168.07 24,014,779.82
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 investments in other debt obligations
6.2.3 Other comprehensive
income arising from the reclassification
of financial assets
6.2.4 Allowance for credit
impairments in investments in other
debt obligations
6.2.5 Reserve for cash flow
hedges
6.2.6 Differences arising from
the translation of foreign
currency-denominated financial
statements
-1,213,168.07 24,014,779.82
6.2.7 Other
Attributable to non-controlling
interests
1,519,053.54 -852,120.01
7. Total comprehensive income -274,059,600.01 181,616,074.89
Attributable to owners of the
Company as the parent
-221,816,108.44 109,581,500.25
Attributable to non-controlling
interests
-52,243,491.57 72,034,574.64
8. Earnings per share
Konka Group Co., Ltd. First Quarter Report 2020
20
8.1 Basic earnings per share -0.0916 0.0355
8.2 Diluted earnings per share -0.0916 0.0355
Legal representative: Liu Fengxi CFO: Li Chunlei Head of the financial department: Feng Junxiu
4. Income Statement of the Company as the Parent
Unit: RMB
Item Q1 2020 Q1 2019
1. Operating revenue 2,173,088,156.73 3,159,459,959.20
Less: Cost of sales
1,908,039,936.17 3,084,291,674.08
Taxes and surcharges 1,190,131.21 1,508,984.24
Selling expense
206,626,489.19 318,153,101.41
Administrative expense 122,812,588.05 60,368,923.38
R&D expense
10,427,818.73 11,416,023.40
Finance costs 98,317,835.64 185,005,604.01
Including: Interest expense
247,210,956.09 246,745,502.24
Interest income 116,118,501.10 109,403,676.64
Add: Other income
47,511,070.74 13,187,319.83
Return on investment (“-” for
loss)
37,878,815.64 64,398,528.84
Including: Share of profit or
loss of joint ventures and associates
Income from the
derecognition of financial assets at
amortized cost (“-” for loss)
Net gain on exposure hedges
(“-” for loss)
Gain on changes in fair value
(“-” for loss)
-3,005,381.67
Credit impairment loss (“-” for
loss)
Asset impairment loss (“-” for
loss)
Asset disposal income (“-” for
loss)
2. Operating profit (“-” for loss) -88,936,755.88 -426,703,884.32
Add: Non-operating income 141,649.22 235,648.04
Less: Non-operating expense 101,484.58 494,763.01
3. Profit before tax (“-” for loss) -88,896,591.24 -426,962,999.29
Konka Group Co., Ltd. First Quarter Report 2020
21
Less: Income tax expense -21,239,920.46 -107,517,405.52
4. Net profit (“-” for net loss) -67,656,670.78 -319,445,593.77
4.1 Net profit from continuing
operations (“-” for net loss)
-67,656,670.78 -319,445,593.77
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
pension 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
of the company’s credit risks
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 Allowance for credit
impairments in investments in other
debt obligations
5.2.5 Reserve for cash flow
hedges
5.2.6 Differences arising from
the translation of foreign
currency-denominated financial
statements
Konka Group Co., Ltd. First Quarter Report 2020
22
5.2.7 Other
6. Total comprehensive income -67,656,670.78 -319,445,593.77
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Item Q1 2020 Q1 2019
1. Cash flows from operating
activities:
Proceeds from sale of commodities
and rendering of services
8,499,871,584.58 11,629,972,953.14
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
61,099,379.53 307,323,363.61
Cash generated from other
operating activities
517,064,976.00 1,487,656,643.30
Subtotal of cash generated from
operating activities
9,078,035,940.11 13,424,952,960.05
Payments for commodities and
services
8,277,120,758.49 12,464,112,932.57
Net increase in loans and advances
to customers
Konka Group Co., Ltd. First Quarter Report 2020
23
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 522,535,841.05 548,246,765.80
Taxes paid 497,454,218.72 159,596,824.94
Cash used in other operating
activities
812,148,590.43 793,736,581.46
Subtotal of cash used in operating
activities
10,109,259,408.69 13,965,693,104.77
Net cash generated from/used in
operating activities
-1,031,223,468.58 -540,740,144.72
2. Cash flows from investing
activities:
Proceeds from disinvestment
51,626,012.60 71,798,210.00
Return on investment 42,185,934.10 18,560,027.29
Net proceeds from the disposal of
fixed assets, intangible assets and
other long-lived assets
291,834.00 27,086.77
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other
investing activities
484,929,444.44 50,000,000.00
Subtotal of cash generated from
investing activities
579,033,225.14 140,385,324.06
Payments for the acquisition of
fixed assets, intangible assets and
other long-lived assets
986,208,459.31 198,262,328.78
Payments for investments 400,000.00 1,116,840,150.00
Net increase in pledged loans
granted
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing
activities
88,280,000.00 33,420.00
Konka Group Co., Ltd. First Quarter Report 2020
24
Subtotal of cash used in investing
activities
1,074,888,459.31 1,315,135,898.78
Net cash generated from/used in
investing activities
-495,855,234.17 -1,174,750,574.72
3. Cash flows from financing
activities:
Capital contributions received 92,900,439.00 69,775,272.10
Including: Capital contributions
by non-controlling interests to
subsidiaries
92,900,439.00 69,775,272.10
Borrowings obtained
5,990,188,961.51 8,527,657,744.97
Cash generated from other
financing activities
120,900,000.00
Subtotal of cash generated from
financing activities
6,203,989,400.51 8,597,433,017.07
Repayments of borrowings 3,561,043,093.07 5,791,211,803.51
Payments for interest and
dividends
251,247,798.13 130,287,756.06
Including: Dividends paid by
subsidiaries to non-controlling
interests
Cash used in other financing
activities
80,860,476.44 113,256,202.85
Subtotal of cash used in financing
activities
3,893,151,367.64 6,034,755,762.42
Net cash generated from/used in
financing activities
2,310,838,032.87 2,562,677,254.65
4. Effect of foreign exchange rate
changes on cash and cash equivalents
9,479,762.14 -28,585,274.94
5. Net increase in cash and cash
equivalents
793,239,092.26 818,601,260.27
Add: Cash and cash equivalents,
beginning of the period
4,493,701,917.22 3,434,149,481.72
6. Cash and cash equivalents, end of
the period
5,286,941,009.48 4,252,750,741.99
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item Q1 2020 Q1 2019
1. Cash flows from operating
activities:
Proceeds from sale of commodities
and rendering of services
2,771,899,784.42 5,741,645,965.28
Konka Group Co., Ltd. First Quarter Report 2020
25
Tax rebates 20,649,207.83 2,001,311.86
Cash generated from other
operating activities
2,075,822,222.03 2,888,350,859.75
Subtotal of cash generated from
operating activities
4,868,371,214.28 8,631,998,136.89
Payments for commodities and
services
1,450,487,246.54 4,822,152,505.81
Cash paid to and for employees 133,423,344.93 228,776,897.37
Taxes paid 4,136,871.33 27,043,199.31
Cash used in other operating
activities
2,873,144,580.53 3,497,902,432.17
Subtotal of cash used in operating
activities
4,461,192,043.33 8,575,875,034.66
Net cash generated from/used in
operating activities
407,179,170.95 56,123,102.23
2. Cash flows from investing
activities:
Proceeds from disinvestment 32,450,000.00 4,538,210.00
Return on investment
15,939,565.72 20,974,260.08
Net proceeds from the disposal of
fixed assets, intangible assets and
other long-lived assets
40,484.00 75,760.33
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other
investing activities
432,059,444.44 68,811,385.15
Subtotal of cash generated from
investing activities
480,489,494.16 94,399,615.56
Payments for the acquisition of
fixed assets, intangible assets and
other long-lived assets
25,216,708.68 37,545,366.80
Payments for investments 167,400,000.00 419,430,000.00
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing
activities
88,280,000.00 2,341,938,500.00
Subtotal of cash used in investing
activities
280,896,708.68 2,798,913,866.80
Net cash generated from/used in
investing activities
199,592,785.48 -2,704,514,251.24
3. Cash flows from financing
activities:
Konka Group Co., Ltd. First Quarter Report 2020
26
Capital contributions received
Borrowings obtained 2,292,002,445.87 4,288,771,590.00
Cash generated from other
financing activities
Subtotal of cash generated from
financing activities
2,292,002,445.87 4,288,771,590.00
Repayments of borrowings
2,559,852,000.00 1,517,544,630.00
Payments for interest and
dividends
218,167,563.74 103,058,776.61
Cash used in other financing
activities
4,759,802.05 85,309.60
Subtotal of cash used in financing
activities
2,782,779,365.79 1,620,688,716.21
Net cash generated from/used in
financing activities
-490,776,919.92 2,668,082,873.79
4. Effect of foreign exchange rate
changes on cash and cash equivalents
2,905,864.39 -11,843,842.05
5. Net increase in cash and cash
equivalents
118,900,900.90 7,847,882.73
Add: Cash and cash equivalents,
beginning of the period
1,337,342,186.92 1,497,794,555.85
6. Cash and cash equivalents, end of
the period
1,456,243,087.82 1,505,642,438.58
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year of
any New Standards Governing Revenue or Leases from 2020
√ Applicable □ Not applicable
(1) Consolidated Balance Sheet
Unit: RMB
Item 31 December 2019 1 January 2020 Adjusted
Current assets:
Monetary assets
6,599,360,051.61 6,599,360,051.61
Settlement reserve
Interbank loans granted
Held-for-trading
financial assets
61,494,666.97 61,494,666.97
Derivative financial
assets
Notes receivable
2,838,041,432.89 2,838,041,432.89
Accounts receivable 4,416,179,657.87 4,416,179,657.87
Konka Group Co., Ltd. First Quarter Report 2020
27
Accounts receivable
financing
143,174,271.82 143,174,271.82
Prepayments
2,072,550,811.86 2,072,550,811.86
Premiums receivable
Reinsurance receivables
Receivable reinsurance
contract reserve
Other receivables 1,772,183,366.49 1,772,183,366.49
Including: Interest
receivable
7,807,400.40 7,807,400.40
Dividends
receivable
547,848.62 547,848.62
Financial assets
purchased under resale
agreements
Inventories 5,318,503,044.69 5,318,503,044.69
Contractual assets
Assets classified as held
for sale
Current portion of
non-current assets
108,087,016.22 108,087,016.22
Other current assets 2,093,212,552.25 2,093,212,552.25
Total current assets
25,422,786,872.67 25,422,786,872.67
Non-current assets:
Loans and advances to
customers
Investments in debt
obligations
Investments in other
debt obligations
Long-term receivables 410,509,555.85 410,509,555.85
Long-term equity
investments
3,465,541,196.89 3,465,541,196.89
Investments in other
equity instruments
21,642,170.36 21,642,170.36
Other non-current
financial assets
1,753,121,727.83 1,753,121,727.83
Investment property
400,197,374.07 400,197,374.07
Fixed assets 2,561,254,191.55 2,561,254,191.55
Konka Group Co., Ltd. First Quarter Report 2020
28
Construction in progress 4,291,544,368.52 4,291,544,368.52
Productive living assets
Oil and gas assets
Use rights assets
Intangible assets 1,213,271,713.22 1,213,271,713.22
R&D expense
Goodwill 779,260,296.41 779,260,296.41
Long-term prepaid
expense
107,590,078.88 107,590,078.88
Deferred income tax
assets
987,763,182.17 987,763,182.17
Other non-current assets 1,172,472,723.85 1,172,472,723.85
Total non-current assets
17,164,168,579.60 17,164,168,579.60
Total assets 42,586,955,452.27 42,586,955,452.27
Current liabilities:
Short-term borrowings 10,332,687,239.63 10,332,687,239.63
Borrowings from the
central bank
Interbank loans obtained
Held-for-trading
financial liabilities
Derivative financial
liabilities
Notes payable 1,319,396,374.37 1,319,396,374.37
Accounts payable
5,797,822,479.60 5,797,822,479.60
Advances from
customers
1,076,856,387.08 -1,076,856,387.08
Contractual liabilities 959,538,151.80 959,538,151.80
Financial assets sold
under repurchase
agreements
Customer deposits and
interbank deposits
Payables for acting
trading of securities
Payables for
underwriting of securities
Payroll payable 426,870,498.58 426,870,498.58
Konka Group Co., Ltd. First Quarter Report 2020
29
Taxes payable 607,845,294.99 607,845,294.99
Other payables 2,374,287,243.20 2,374,287,243.20
Including: Interest
payable
227,831,108.53 227,831,108.53
Dividends
payable
Handling charges and
commissions payable
Reinsurance payables
Liabilities directly
associated with assets
classified as held for sale
Current portion of
non-current liabilities
210,066,077.13 210,066,077.13
Other current liabilities
Total current liabilities 22,145,831,594.58 22,028,513,359.30 -117,318,235.28
Non-current liabilities:
Insurance contract
reserve
Long-term borrowings 4,890,315,729.90 4,890,315,729.90
Bonds payable
4,987,709,643.64 4,987,709,643.64
Including: Preferred
shares
Perpetual
bonds
Lease liabilities
Long-term payables 383,287,104.62 383,287,104.62
Long-term payroll
payable
5,565,646.72 5,565,646.72
Provisions
206,591.51 206,591.51
Deferred income 151,874,258.45 151,874,258.45
Deferred income tax
liabilities
95,467,096.05 95,467,096.05
Other non-current
liabilities
117,318,235.28 117,318,235.28
Total non-current liabilities 10,514,426,070.89 10,631,744,306.17 117,318,235.28
Total liabilities 32,660,257,665.47 32,660,257,665.47
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Konka Group Co., Ltd. First Quarter Report 2020
30
Other equity instruments
Including: Preferred
shares
Perpetual
bonds
Capital reserves 230,368,577.09 230,368,577.09
Less: Treasury stock
Other comprehensive
income
-21,293,103.52 -21,293,103.52
Specific reserve
Surplus reserves 1,211,721,109.67 1,211,721,109.67
General reserve
Retained earnings 4,239,763,606.89 4,239,763,606.89
Total equity attributable to
owners of the Company as
the parent
8,068,505,598.13 8,068,505,598.13
Non-controlling interests
1,858,192,188.67 1,858,192,188.67
Total owners’ equity 9,926,697,786.80 9,926,697,786.80
Total liabilities and
owners’ equity
42,586,955,452.27 42,586,955,452.27
Notes for adjustment
The Ministry of Finance issued the revised "Accounting Standards for Business Enterprises No.
14-Revenue"(Cai Kuai [2017]No.22), and the Company implemented since 1 Jan. 2020. According
to the new income standard, enterprises implementing this standard for the first time should adjust
the amount of retained earnings and other related items in the financial statements at the beginning
of the year when the standard is first implemented based on the cumulative impact of the first
implementation of the standard, and no adjustment is made to the information for the comparable
period.
(2) Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 December 2019 1 January 2020 Adjusted
Current assets:
Monetary assets 2,498,077,198.12 2,498,077,198.12
Held-for-trading
financial assets
61,494,666.97 61,494,666.97
Derivative financial
assets
Notes receivable 2,148,312,821.38 2,148,312,821.38
Konka Group Co., Ltd. First Quarter Report 2020
31
Accounts receivable 9,564,720,940.39 9,564,720,940.39
Accounts receivable
financing
66,002,903.68 66,002,903.68
Prepayments 911,315,168.95 911,315,168.95
Other receivables
10,552,820,915.47 10,552,820,915.47
Including: Interest
receivable
7,431,353.86 7,431,353.86
Dividends
receivable
518,580,871.02 518,580,871.02
Inventories 218,644,308.47 218,644,308.47
Contractual assets
Assets classified as held
for sale
Current portion of
non-current assets
Other current assets 1,096,689,897.40 1,096,689,897.40
Total current assets 27,118,078,820.83 27,118,078,820.83
Non-current assets:
Investments in debt
obligations
Investments in other
debt obligations
Long-term receivables
Long-term equity
investments
7,712,084,967.88 7,712,084,967.88
Investments in other
equity instruments
12,940,214.36 12,940,214.36
Other non-current
financial assets
250,230,000.00 250,230,000.00
Investment property
400,197,374.07 400,197,374.07
Fixed assets 444,107,402.57 444,107,402.57
Construction in progress
40,933,270.51 40,933,270.51
Productive living assets
Oil and gas assets
Use rights assets
Intangible assets
80,470,750.60 80,470,750.60
R&D expense
Konka Group Co., Ltd. First Quarter Report 2020
32
Goodwill
Long-term prepaid
expense
39,047,325.68 39,047,325.68
Deferred income tax
assets
883,234,085.45 883,234,085.45
Other non-current assets
Total non-current assets
9,863,245,391.12 9,863,245,391.12
Total assets 36,981,324,211.95 36,981,324,211.95
Current liabilities:
Short-term borrowings 5,014,312,913.74 5,014,312,913.74
Held-for-trading
financial liabilities
Derivative financial
liabilities
Notes payable 2,610,991,473.69 2,610,991,473.69
Accounts payable 11,078,648,690.19 11,078,648,690.19
Advances from
customers
318,839,961.84 -318,839,961.84
Contractual liabilities
170,048,221.37 170,048,221.37
Payroll payable 125,402,307.95 125,402,307.95
Taxes payable
9,305,344.42 9,305,344.42
Other payables 3,193,392,734.69 3,193,392,734.69
Including: Interest
payable
223,847,860.57 223,847,860.57
Dividends
payable
Liabilities directly
associated with assets
classified as held for sale
Current portion of
non-current liabilities
130,512,375.00 130,512,375.00
Other current liabilities
Total current liabilities 22,481,405,801.52 22,332,614,061.05 -148,791,740.47
Non-current liabilities:
Long-term borrowings 3,438,055,729.90 3,438,055,729.90
Bonds payable 4,987,709,643.64 4,987,709,643.64
Including: Preferred
shares
Konka Group Co., Ltd. First Quarter Report 2020
33
Perpetual
bonds
Lease liabilities
Long-term payables 21,855,688.19 21,855,688.19
Long-term payroll
payable
Provisions
206,591.51 206,591.51
Deferred income 59,545,839.30 59,545,839.30
Deferred income tax
liabilities
Other non-current
liabilities
148,791,740.47 148,791,740.47
Total non-current liabilities 8,507,373,492.54 8,656,165,233.01 148,791,740.47
Total liabilities
30,988,779,294.06 30,988,779,294.06
Owners’ equity:
Share capital
2,407,945,408.00 2,407,945,408.00
Other equity instruments
Including: Preferred
shares
Perpetual
bonds
Capital reserves 114,018,066.79 114,018,066.79
Less: Treasury stock
Other comprehensive
income
-2,682,217.31 -2,682,217.31
Specific reserve
Surplus reserves
1,227,564,785.19 1,227,564,785.19
Retained earnings 2,245,698,875.22 2,245,698,875.22
Total owners’ equity
5,992,544,917.89 5,992,544,917.89
Total liabilities and
owners’ equity
36,981,324,211.95 36,981,324,211.95
Konka Group Co., Ltd. First Quarter Report 2020
34
Notes for adjustment
The Ministry of Finance issued the revised "Accounting Standards for Business Enterprises No.
14-Revenue"(Cai Kuai [2017]No.22), and the Company implemented since 1 Jan. 2020. According
to the new income standard, enterprises implementing this standard for the first time should adjust
the amount of retained earnings and other related items in the financial statements at the beginning
of the year when the standard is first implemented based on the cumulative impact of the first
implementation of the standard, and no adjustment is made to the information for the comparable
period.
2. Retrospective Restatement of Previous Comparative Data due to the First Execution of any
New Standards Governing Revenue or Leases from 2020
√ Applicable □ Not applicable
The Ministry of Finance issued the revised "Accounting Standards for Business Enterprises No.
14-Revenue"(Cai Kuai [2017]No.22), and the Company implemented since 1 Jan. 2020. According
to the new income standard, enterprises implementing this standard for the first time should adjust
the amount of retained earnings and other related items in the financial statements at the beginning
of the year when the standard is first implemented based on the cumulative impact of the first
implementation of the standard, and no adjustment is made to the information for the comparable
period.
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.
29 April 2020