The Abstract of the 2015 Annual Report of Konka Group Co., Ltd.
Stock code: 000016, 200016 Public Announcement No.: 2016-17
Stock abbreviation: Konka A, Konka B
Konka Group Co., Ltd.
The Abstract of the 2015 Annual Report
I. Important information
This Abstract is based on the full text of the Annual Report. In order for a full understanding of the
operating results, financial condition and future development planning of the Company, investors are
kindly reminded to read the full text carefully on the media designated by the China Securities
Regulatory Commission (the “CSRC”).
This Abstract is prepared in both Chinese and English. Should there be any discrepancy between the
two versions, the Chinese version shall prevail.
Objections of the directors, supervisors and senior management
Name Office title Objection & reason
Statement
Except for the following directors, the other directors all attended in person the board meeting for the
review of the Annual Report.
Reason for not attending in
Name Office title Proxy
person
Auditor’s non-standard opinion
□ Applicable √ Inapplicable
Preliminary plan for profit distribution to the common shareholders or turning the capital reserve into
the share capital for the reporting period, which has been reviewed and approved at the board meeting
□ Applicable √ Inapplicable
The Company plans not to distribute cash dividends or bonus shares or turn capital reserves into share
capital.
Preliminary plan for profit distribution to the preference shareholders for the reporting period which
has been reviewed and approved at the board meeting
□ Applicable √ Inapplicable
Company profile
Stock abbr. Konka A, Konka B Stock code 000016, 200016
Stock exchange Shenzhen Stock Exchange
Stock abbr. after change (if any) No changes
Contact information Company Secretary Securities Affairs Representative
Name Wu Yongjun Miao Leiqiang
Board Secretariat, 24/F, Konka R&D Board Secretariat, 24/F, Konka R&D
Center, 28 Keji South Twelfth Road, Center, 28 Keji South Twelfth Road,
Office address Science and Technology Park, Yuehai Science and Technology Park, Yuehai
Street, Nanshan District, Shenzhen, Street, Nanshan District, Shenzhen,
Guangdong Province, China Guangdong Province, China
1
The Abstract of the 2015 Annual Report of Konka Group Co., Ltd.
Fax 0755-26601139 0755-26601139
Tel. 0755-26608866 0755-26608866
E-mail address szkonka@konka.com szkonka@konka.com
II. Brief introduction to the main business or products in the reporting period
The Company is currently engaged in color TVs, mobile phones and white goods, with its main
business models and the situations of its business divisions as follows:
1. Color TVs
The Company provides color TVs for both domestic and overseas markets.
The domestic sales of its color TVs are realized mainly through B2B (Business-to-Business) and B2C
(Business-to-Consumer), with its branch companies, business departments and after-sales
maintenance points all over the country. And it profits from the margin between the costs and the
selling prices of its color TVs.
As for the overseas sales, it mainly relies on B2B and is supported by B2C. The color TVs of the
Company are sold to Asia Pacific, Middle East, Central & South America, East Europe, etc. And the
profit also comes from the difference between the costs and the selling prices of its color TVs.
2. Mobile phones
The mobile phones of the Company are sold domestically and overseas. The overseas sales mainly
rely on B2B and the profit comes from the margin between the costs and the selling prices of the
mobile phones. As for the domestic sales of its mobile phones, the Company mainly relies on the
telecom operator channel in the recent years. But it has also restarted the retail sales (through B2B and
B2C) of its mobile phones in the domestic market since August 2015. It has been active in breaking
into the rural markets. And its successful launch of new products in the domestic retail market marks
a good start in the domestic retail sales of its mobile phones. In the domestic sales of its mobile
phones, the Company profits mainly from the costs and the selling prices of its products, with a small
amount from the value added service.
3. White goods
The white goods produced by the Company mainly include refrigerators, washing machines, air
conditioners, freezers, etc., which are sold through B2B and B2C to the domestic market. And the
Company profits from the margin between the costs and the selling prices of its white goods.
III. Accounting and financial highlights
1. Accounting and financial highlights for the past three years
Does the Company adjust retrospectively or restate the accounting data of previous years due to
changes in the accounting policy or corrections of accounting errors?
□ Yes √ No
Unit: RMB Yuan
2
The Abstract of the 2015 Annual Report of Konka Group Co., Ltd.
Increase/decrease
2015 2014 of current year 2013
over last year
Operating revenues 18,395,177,035.98 19,423,488,994.07 -5.29% 20,006,736,878.82
Net profits attributable to
-1,256,819,314.51 52,623,527.86 -2,488.32% 45,820,496.73
shareholders of the Company
Net profits attributable to
shareholders of the Company
-1,129,999,645.94 -475,481,381.45 -137.65% -68,357,341.76
after extraordinary gains and
losses
Net cash flows from operating
1,289,600,482.66 -640,385,182.05 301.38% 2,283,254,200.89
activities
Basic EPS (RMB Yuan/share) -0.52 0.02 -2,700.00% 0.0190
Diluted EPS (RMB Yuan/share) -0.52 0.02 -2,700.00% 0.0190
Weighted average ROE (%) -36.30% 1.28% -37.58% 1.13%
Increase/decrease
of current
As at 31 Dec. 2015 As at 31 Dec. 2014 As at 31 Dec. 2013
year-end than last
year-end
Total assets 14,250,367,548.28 16,779,359,276.65 -15.07% 15,744,099,307.58
Net assets attributable to
2,814,382,870.81 4,103,478,971.07 -31.41% 4,087,909,132.35
shareholders of the Company
2. Accounting highlights by quarter
Unit: RMB Yuan
Q1 Q2 Q3 Q4
Operating revenues 4,569,152,230.30 4,375,406,690.66 4,900,151,931.72 4,550,466,183.30
Net profits attributable to
7,752,441.61 -304,705,949.00 -555,256,040.41 -404,609,766.71
shareholders of the Company
Net profits attributable to
shareholders of the Company
-214,058.24 -333,724,173.74 -365,476,454.60 -430,346,897.58
after extraordinary gains and
losses
Net cash flows from operating
277,361,649.37 -207,318,739.74 1,070,979,280.76 148,578,292.27
activities
Any material differences between the financial indicators above or their summations and those which
have been disclosed in quarterly or semi-annual reports?
□ Yes √ No
IV. Share capital and shareholders
1. Numbers of the common shareholders and the preference shareholders with resumed voting
rights as well as the shareholdings of the top 10 shareholders
Unit: share
Total number Total number of
Total number
of common preference
Total number of preference
shareholders at shareholders with
of common shareholders
167,819 pervious 162,563 0 resumed voting 0
shareholders with resumed
month-end of rights at pervious
at period-end voting rights at
this Report’s month-end of this
period-end
disclosure Report’s disclosure
3
The Abstract of the 2015 Annual Report of Konka Group Co., Ltd.
Shareholdings of top 10 shareholders
Nature of Total shares Pledged or frozen shares
Name of Shareholding Number of restricted shares
shareholde held at Status of Number of
shareholder percentage held
r period-end shares shares
State-own Pledged 0
OCT
ed
Enterprises 21.75% 523,746,932 396,763,880
corporatio Frozen 0
Co.
n
CITIC Pledged 0
Securities Foreign
Brokerage corporatio 7.48% 180,001,110 0
(Hong Kong) n Frozen 0
Co., Ltd.
Guoyuan Pledged 0
Foreign
Securities
corporatio 2.48% 59,827,170 0
Broker (HK) Frozen 0
n
Co., Ltd.
Foreign Pledged 0
Gaoling Fund,
corporatio 2.19% 52,801,250 0
L.P. Frozen 0
n
Holy Time Foreign Pledged 0
Group corporatio 2.18% 52,580,354 0
Limited n Frozen 0
Foreign Pledged 0
Nam Ngai 0.97% 23,381,040 0
individual Frozen 0
State-own Pledged 0
CMS (HK) ed
0.94% 22,726,804 0
Co., Ltd. corporatio Frozen 0
n
CSI Capital Foreign Pledged 0
Management corporatio 0.85% 20,550,928 0
Limited n Frozen 0
BOCI Foreign Pledged 0
Securities corporatio 0.78% 18,883,092 0
Limited n Frozen 0
Credit Suisse Foreign Pledged 0
AG Hong corporatio 0.33% 7,939,174 0
Kong Branch n Frozen 0
Jialong Investment Limited, a wholly-funded subsidiary of the Company’s first majority
shareholder OCT Enterprises Co., Ltd., respectively held the common shares of the Company of
Related or acting-in-concert
180,001,110 shares and 18,360,000 shares through CITIC Securities Brokerage (Hong Kong) Co.,
parties among shareholders
Ltd. and CMS (HK) Co., Ltd. Therefore, Jialong Investment Limited and OCT Enterprises Co. are
above
parties acting in concert. The Company does not know whether the other shareholders are related
parties and whether they are acting-in-concert parties.
Shareholders conducting
securities margin trading (if No such shareholders
any)
2. Number of the preference shareholders and the shareholdings of the top 10 of them
□ Applicable √ Inapplicable
No preference shareholders in the reporting period
4
The Abstract of the 2015 Annual Report of Konka Group Co., Ltd.
3. Relationship between the Company and its actual controller in the form of diagram
SASAC of the State Council
OCT Enterprises Co. and its wholly owned subsidiaries
Konka Group Co., Ltd.
V. Discussion and analysis by the management
1. Business review for the reporting period
For the year 2015, the Company achieved operating revenues of RMB18.395 billion, down 5.29%
from the prior year. And the net profits attributable to the shareholders of the Company stood at
RMB-1.257 billion, representing a year-on-year decrease of 2488.32%. In the year, the Company not
only faced with huge impacts from industry renewal and drastic fluctuations in exchange rate market,
but also went through internal trials and shocks. In such instance, the Company stood up to the
pressure, cleared up operation strategies and development directions, and created advantages for
further acceleration of development. Business highlights of the Company in 2015 are as below:
(1) The Company cleared up operation strategies and development directions in constant
adjustments.
In 2015, competitions in household appliance industry were more white-hot, together with negative
factors such as exchange rate fluctuations and management changes, the Company suffered a large
decline in business performance. In the course of that period, the Company stabilized operation
situation through deep clear-up and positive strategic adjustments, re-clarified business layout,
determined business strategies of focusing superior resources to develop main businesses, and created
good atmosphere for development acceleration in next period.
(2) Urban renewal project for the headquarter block officially started.
In Apr 2015, the Company moved into the new office block. The urban renewal project for the
headquarter block officially stepped into substantive construction period. At present, the site
formation work is progressing on schedule and in order.
(3) Main businesses made progress during changes.
5
The Abstract of the 2015 Annual Report of Konka Group Co., Ltd.
① Domestic business of color TV
In 2015, in terms of manufacturing of color TV for domestic business, the Company improved
manufacturing efficiency by continuously perfecting techniques. And at the same time, the Company
kept improving product quality by strictly controlling on quality.
In terms of concrete sales strategies of color TV for domestic business, the Company strengthened on
products, supplied deficiencies, formed portfolio effects for main sales series, and enhanced the
iterative upgrade of products. The client service department improved product service by real-time
monitoring on product quality.
In 2015, despite some repetitions made for previous thoughts and strategies due to management
changes causing dissatisfactory businesses for overall operation, the Company generally
accomplished business adjustments by re-adjustments and re-plans in the 4th quarter. The products
operation tempo began to show up, the turnover speed became higher, and the sales businesses
obtained obvious improvement. It should be mentioned that the domestic business of color TV is
currently stepping into a trend for the good in overall view, which reflects the initial effects brought
by adjustments.
② Overseas businesses
In 2015, as for the overseas businesses, the Company conquered multiple negative factors, tightly
caught up blank markets in traditional districts, positively developed potential clients, fully combined
after-end resources, and realized large sales increase in traditional clients. Meanwhile, the blossomed
result of key and new clients newly developed made the client structure more rational, and ensured a
record-high sales volume of overseas businesses. Moreover, the profitability of overseas businesses
further improved due to gross margin increase.
③ Handset business
In 2015, as for handset business, the Company took products and clients as the key line, established
operation strategies of parallel businesses of OEM and self-own brand, and activated domestic sales
brand business in the second half year. The Company launched new product of mobile phone R1, and
founded a mobile internet technology limited company with sales as the focused subject, which
formed a business model of shoulder-to-shoulder development of domestic and overseas businesses,
and as a result, laid a foundation for future development.
④ White household appliance business
In 2015, as for white household appliance business, the Company positively applied internet thinking,
and put forth efforts to e-commerce, which developed rapidly. At the same time, through constant
perfecting and optimization for internal management, the Company mainly promoted three-door and
multi-door boutique refrigerators, focused on digging out new growth points of profits and businesses,
obtained growth against negative trend in difficult situation, and improved a lot for business
6
The Abstract of the 2015 Annual Report of Konka Group Co., Ltd.
performance.
2. Significant changes in the main business in the reporting period
□ Yes √ No
3. Products contributing over 10% of the main business revenue or profit
√ Applicable □ Inapplicable
Unit: RMB Yuan
Operating Operating Gross profit
Gross profit
Product Operating revenue Operating profit revenue: YoY profit: YoY margin: YoY
margin
+/-% +/-% +/-%
Color TVs 12,590,931,785.71 11,006,357,581.37 12.59% -14.33% -12.07% -2.25%
4. Seasonal or periodic characteristics in the operating performance that need special attention
□ Yes √ No
5. Significant YoY changes in the operating revenues, operating costs and net profits
attributable to the common shareholders or their composition
√ Applicable □ Inapplicable
In the reporting period, the Company carried on with its Internet strategy and its product mix
improved with a larger proportion of smart TVs in its total sales. However, the Company recorded a
large deficit due to the following reasons:
1. In the reporting period, the Company received The Notice of the Finance Commission of Shenzhen
Municipality Concerning the Withdrawal of the Central Government Subsidy for the Promotion of
Highly Energy-Saving Household Appliances. According to the Notice, the Company had to return a
subsidy of RMB89.96 million, incurring an irrecoverable book receivable of net government
energy-saving subsidy of RMB131.99 million as well as a decrease of RMB221.95 million in the
consolidated total profits.
2. The Company has a great amount of financings in the US dollar due to its operation needs.
Although it has increased its exchange rate lock-in business from September 2015 to control the
exchange rate risk of its dollar financings, a great, adverse impact was caused by the depreciation of
the RMB against the US dollar in the first nine months of 2015 on the Company’s overall business
results, incurring an exchange loss of approximately RMB229 million in the year.
3. In the reporting period, the management of the Company, those in the domestic sales of color TVs
in particular, experienced frequent changes, which greatly affected the cohesion and morale of the
employees as well as the product planning and operating efficiency of the Company. The changing
management made two adjustments to the product planning in the third and fourth quarters
respectively, creating an unfavorable impact on the sales. In addition, the price battles involving the
7
The Abstract of the 2015 Annual Report of Konka Group Co., Ltd.
Company’s main products also led to the decrease in the Company’s profitability in its main business.
6. Listing suspension or termination
□ Applicable √ Inapplicable
VI. Issues related to the financial report
1. YoY changes in the accounting policy, accounting estimation and measurement methods
□ Applicable √ Inapplicable
No changes.
2. Retrospective restatements due to correction of significant accounting errors in the
reporting period
□ Applicable √ Inapplicable
No such cases.
3. YoY changes in the consolidation scope
√ Applicable □ Inapplicable
(1) Disposal of the subsidiaries
On 9 Feb. 2015, the Company formally written off Konka (Nanhai) Development Center. Since then,
the Company no more included which in the consolidated scope.
(2) Changes of the consolidated scope of other reasons
① Shenzhen Konka Precision Mold Manufacturing Co., Ltd and Mansfield Technology (Taiwan)
Co., Ltd, our subsidiaries contributed capital jointly and founded Anhui Jiasen. Its registered capital
was RMB20 million, and it was paid in full amount by all the stockholders by September 30, 2015. In
it, Shenzhen Konka Precision Mold Manufacturing Co., Ltd. subscribed to RMB1.02 million, which
occupied 51% of the registered capital and Mansfield Technology (Taiwan) Co., Ltd. subscribed to
RMB9.80 million, which occupied 49% of the registered capital.
②The Company contributed capital with Shenzhen Kaikai Shijie Investment Partnership Enterprise
(limited partnership) jointly and founded Anhui Kakai Shijie on December 29, 2014, with a registered
capital of RMB20 million. In it, the Company contributed RMB16million, which occupied 80% of
the registered capital. Shenzhen Kaikai Shijie Investment Partnership Enterprise (limited partnership)
contributed RMB 4.0 million, which occupied 20% of the registered capital. The Company has right
of control over it, and included it into its merger scope from January 1, 2015.
③The Company contributed capital with Shenzhen Yizhonghui Technology Co., Ltd. and Shenzhen
Yizhonghe Technology Co., Ltd. jointly and founded Shenzhen E2info with a registered capital of
RMB20 million on January 12, 2015. In it, the Company contributed RMB19.20million, which
8
The Abstract of the 2015 Annual Report of Konka Group Co., Ltd.
occupied 96% of the registered capital, the other stockholders contributed RMB800,000, which
occupied 4% of the registered capital, but the capital had not been actually contributed by the date of
the balance sheet. And according to the regulations of the articles, the Company has right of control
over it, and included it into its merger scope from January 12, 2015.
④ The Company contributed capital with OCT Enterprises Co. jointly and founded Shenzhen
Kangqiaojiacheng Property Investment Co., Ltd, with a registered capital of RMB10 billion on
January 9, 2015, which will be paid in full amount by all the stockholders by December 31, 2019. In it,
the Company subscribed to RMB700 million, which occupied 70% of the registered capital, OCT
Enterprises Co. contributed to RMB300 million, which occupied 30% of the registered capital. By the
date of the balance sheet, the Company actually contributed RMB112 million, which occupied
11.20% of the registered capital; OCT Enterprises Co. actually contributed RMB48 million, which
occupied 4.8% of the registered capital. The Company has right of control over it, and included it into
its merger scope from January 19, 2015.
⑤ Kangdian Investment Development Co., Ltd, a subsidiary of the Company, contributed capital
jointly with KK Orient Limited and founded Konka Smarttech Limited on January 21, 2015, with a
registered capital of HK$10million. In it, Kangdian Investment Development Co., Ltd. contributed
HK$6.10 million, which occupied 61% of the registered capital and Konka Smarttech Limited
contributed HK$3.90 million, which occupied 39% of the registered capital. The Company has right
of control over it, and included it into its merger scope from January 21, 2015.
⑥ Shenzhen Konka E-display Co., Ltd., a subsidiary of the Company contributed capital and
founded Shenzhen E-display Service Co., Ltd., a wholly-funded subsidiary under it on May 7, 2015,
with a registered capital of RMB2.00 million. The Company has right of control over it, and included
it into its merger scope from May 7, 2015.
⑦ The Company and Shenzhen Kangzhuang Jiasheng Investment Partnership (LP) jointly
incorporated Shenzhen Konka Commercial System Technology Co., Ltd. on June 25, 2015 with the
registered capital of RMB12 million, of which, the company contributed RMB9.72 million,
representing 81% of the registered capital, Shenzhen Kangzhuang Jiasheng Investment Partnership
(LP) contributed RMB2.28 million, representing 19% of the registered capital. As at the date of
balance sheet, the company’s actual contribution was RMB2.916 million, representing 24.3% of the
registered capital, and Shenzhen Kangzhuang Jiasheng Investment Partnership (LP) was
RMB621,000, representing 5.18% of the registered capital. The company has control over Shenzhen
Konka Commercial System Technology Co., Ltd. which has been thus consolidated since June 25,
2015.
⑧ The Company and Shenzhen Kangwei Investment Partnership (LP) has jointly incorporated
Shenzhen Konka Mobile Interconnection Technology Co., Ltd. with the registered capital of
RMBXXX on October 26, 2015, which shall be paid in full amount before June 30, 2016 by all the
shareholders, of which, the Company shall contribute RMB10.20 million, representing 51% of the
registered capital; Shenzhen Kangwei Investment Partnership (LP) shall contribute RMB9.80 million,
9
The Abstract of the 2015 Annual Report of Konka Group Co., Ltd.
representing 49% of the registered capital. As at the data of balance sheet, the Company’s actual
contribution was RMB5.10 million, representing 25.5% of the registered capital, and Shenzhen
Kangwei Investment Partnership (LP)’s actual contribution was RMB4.90 million, representing
24.5% of the registered capital. The company has control over Shenzhen Konka Mobile
Interconnection Technology Co., Ltd. which has thus been consolidated since October 26, 2015.
⑨On 27 Mar. 2015, the Company completed the liquidation of Chongqing Konka Automotive
Electronic Co., Ltd.. Since then, the Company no more included which in the consolidated scope.
4. Explanation by the Board of Directors and the Supervisory Committee concerning the
“non-standard auditor’s report” issued by the CPAs firm for the reporting period
□ Applicable √ Inapplicable
The Board of Directors
Konka Group Co., Ltd.
7 April 2016
10
首页
微信公众号
证券之星APP
