Auditor’s Report for Y2025
I. Auditor’s Report
II. Audited Financial Statements
I. Independent Auditor’s Report
Unqualified Opinion with a Paragraph on Material
Type of the independent auditor’s opinion
Uncertainty Related to Going Concern
Date of signing this report April 27, 2026
ShineWing Certified Public Accountants (Special General
Name of the independent auditor
Partnership)
Reference number of audit report XYZH/2026SZAA8B0071
Name of the certified public accountants Gu Fanqiu, Liu Lihong
Main body of the audit report
Audit Report
XYZH/2026SZAA8B0071
Konka Group Co., Ltd.
To all shareholders of Konka Group Co., Ltd.:
I. Auditor's Opinion
We have audited the financial statements of Konka Group Co., Ltd. (hereinafter referred to
as the "Konka Group"), including the consolidated and parent company's balance sheet as
at December 31, 2025, the consolidated and parent company's income statement,
consolidated and parent company's statement of cash flows, consolidated and parent
company's statement of changes in shareholders' equity, as well as the related notes to
the financial statements for the year then ended.
In our opinion, the attached financial statements are prepared, in all material respects, in
accordance with the Accounting Standards for Business Enterprises, and fairly present the
consolidated and the Company's financial position of Konka Group Co., Ltd. as at
December 31, 2025, and the consolidated and the parent company's operating results and
cash flows for the year then ended.
II. Basis for the Audit Opinion
We have conducted our audit in accordance with the Chinese Auditing Standards for
Certified Public Accountants. Our responsibilities under these standards are further
described in the "Certified Public Accountant's Responsibilities for the Audit of Financial
Statements" section of the audit report. In accordance with the independence
requirements of the Independence Standards for Certified Public Accountants of China
and the Code of Ethics for Certified Public Accountants of China applicable to the auditing
of financial statements of public interest entities, we are independent of Konka Group Co.,
Ltd., and have fulfilled our other responsibilities in terms of independence and professional
ethics. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion.
III. Material Uncertainty Related to Going Concern
We draw the attention of the users of the financial statements to the fact that, as stated in
Note III. 2 to the financial statements, the consolidated net profit of Konka Group Co., Ltd.
for the year 2025 was RMB -12.238 billion, and as of December 31, 2025, Konka Group
Co., Ltd.'s net assets in the consolidated financial statements were RMB -5.860 billion,
with a debt-to-asset ratio of 126.22%. The aforesaid matters or conditions, along with
others set forth in Note III.2 to the financial statements, indicate the material uncertainty
that may cast significant doubt on the Group's ability to continue as a going concern. Such
matter does not affect the audit opinion that has been expressed.
IV.Key Audit Matters
Key audit matters are those matters that, in our professional judgment, are of most
significance in our audit of the financial statements of the current period. These matters
are addressed in the context of our audit of the financial statements as a whole and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matters Responses in Audit
For relevant information disclosure, please refer to the (1) Evaluated and tested the effectiveness of the
accounting policies described in Note "IV. Significant designing and operation of key internal control related to
Accounting Policies and Accounting Estimates 34" and "VI. revenue recognition;
Notes to Major Items in the Consolidated Financial (2) Obtained the executed sales contracts, analyzed the
Statements 49" of the financial statements. relevant terms of the sales contracts, and evaluated
Konka Group Co., Ltd. recognized operating revenue of whether the revenue recognition policies of Konka Group
RMB 9.835 billion yuan in its consolidated financial Co., Ltd. comply with the provisions of the Accounting
statements for the year 2025, which mainly consisted of Standards for Business Enterprises;
revenue from businesses such as color TVs, white goods, (3) Obtained the list of product sales customers of Konka
printed circuit boards, and semiconductors. Due to the Group Co., Ltd., and identified whether there is a related-
significance of revenue to the financial statements as a party relationship between the customers and Konka
whole and the risk of material misstatement that Group Co., Ltd. by means such as checking the
management may manipulate revenue recognition to industrial and commercial information of the customers;
achieve specific goals or expectations, we identified revenue (4) Performed analytical procedures on revenue and
recognition as a key audit matter. costs to evaluate the rationality of changes in sales
revenue and gross profit margin on sales;
(5) Checked documents such as significant sales
contracts, orders, invoices, certificates of transfer of
property rights, and bank receipts to verify the
authenticity, completeness, and accuracy of the revenue;
(6) Performed cut-off tests on sales revenue.
Key Audit Matters Responses in Audit
For relevant information disclosure, please refer to the (1) Understood, evaluated, and tested the designing and
accounting policies described in Note "IV. Significant operating effectiveness of the Management's key internal
Accounting Policies and Accounting Estimates 11" and "VI. controls related to external financial assistance;
Notes to Major Items in the Consolidated Financial (2) Obtained the relevant review documents, loan
Statements 7", and "VI. Notes to Major Items in the
Consolidated Financial Statements 10" to the financial contracts, equity pledge contracts, minutes of meetings
statements. and other original documents relating to the external
The external financial assistance by Konka Group Co., Ltd. financial assistance with Konka Group Co., Ltd., and
was mainly the shareholders' financial assistance funds checked whether the lending process of such external
receivable from associates. As of December 31, 2025, the financial assistance was compliant;
balance of such financial assistance funds was RMB 2.102 (3) For the overdue financial assistance payments,
billion, with a provision for bad debts of RMB 1.290 billion. consulted with the Management of Konka Group on the
Given the significance of the external financial assistance to operating conditions of the relevant investees and the
the financial statements as a whole, and that provision for Company's follow-up plans;
impairment of the related assets involved significant (4) For the amounts of external financial assistance with
management judgments and estimates, we identified the indications of impairment, obtained the information on
impairment of external financial assistance as a key audit the Management's estimated recoverable amount, and
matter. brought in valuation experts from the accounting firms to
assist in reviewing key parameters and assumptions
adopted by the Management in evaluating expected
credit losses, as well as checking the accuracy of the
calculation of the recoverable amount;
(3) Evaluated the competence, professionalism, and
objectivity of the external valuation experts engaged by
the Management; and
(6) Examined the presentation and disclosure of
information relating to impairment of external financial
assistance in the financial statements.
Key Audit Matters Responses in Audit
For relevant information disclosure, please refer to the (1) Understood and assessed the internal control of
accounting policies stated in Note IV. Significant Accounting Konka Group Co., Ltd. related to identifying indicators of
Policies and Accounting Estimates (Items 20, 21, 22, 23, 26 impairment of each long-term assets and measuring
and 27) and Note VI. Notes to Major Items of Consolidated recoverable amounts, and tested the effectiveness of key
Financial Statements (Items 12, 14, 15, 16 and 18) in the internal control;
financial statements. (2) Discussed with the Management of Konka Group
The significant long-term assets of Konka Group include Co., Ltd. to understand whether the management's
long-term equity investments, investment properties, fixed business strategies for the relevant long-term assets
assets, construction in progress and intangible assets. As of have changed, and analyzed whether there is any inter-
December 31, 2025, the total carrying amount of the period and over-accrual of provision for impairment of
aforesaid assets amounted to 8.587 billion yuan, with long-term assets;
accumulated impairment provisions of 6.985 billion yuan (3) For assets or asset groups with indications of
accrued. Given the overall materiality of these long-term impairment, obtained the information on the
assets to the financial statements and the fact that the Management's estimated recoverable amount, and
accrual of relevant asset impairment provisions involves brought in valuation experts from the accounting firms to
significant management judgments and estimates, we have assist in reviewing key parameters such as the
identified the impairment of long-term assets as a key audit measurement model based on which the recoverable
matter. amount was measured, the fair value, the disposal costs,
the projected data of future cash flows and the discount
rate, as well as checking the accuracy of the calculation
of the recoverable amount;
(4) Evaluated the competence, professionalism, and
objectivity of the external valuation experts engaged by
the Management; and
(5) Examined the presentation and disclosure of
information relating to impairment of assets in the
financial statements.
V. Other information
The Management of Konka Group Co., Ltd. (hereinafter referred to as the Management) is
responsible for other information. Other information includes information covered in the
our audit report.
Our audit opinion on the financial statements does not cover the other information and we
do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained during the audit, or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of the other information, we are required to report that fact. We have nothing
to report in this regard.
VI. Responsibilities of the Management and Governance Executives for Financial
Statements
The Management is responsible for preparing the financial statements in accordance with
the requirements of the Accounting Standards for Business Enterprises to achieve a fair
presentation, and for designing, implementing and maintaining internal control that is
necessary to ensure that the financial statements are free from material misstatements,
whether due to fraud or errors.
In preparing the financial statements, the Management is responsible for assessing the
going-concern ability of Konka Group Co., Ltd., disclosing matters related to going concern
(if applicable) and applying the going concern basis, unless the management plans to
liquidate Konka Group Co., Ltd., terminate its operations or has no other realistic
alternative.
The governance executives are responsible for overseeing the financial reporting process
of Konka Group Co., Ltd.
VII. Responsibilities of Certified Public Accountants for the Audit of Financial
Statements
Our objectives are to obtain reasonable assurance about whether the financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue
an audit report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with the audit
standards will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of the financial statements.
We have exercised professional judgment and maintained professional skepticism in
performing our audit under the auditing standards. At the same time, we also perform the
following work:
(1) Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
(2) Understand the internal control related to the audit so as to design appropriate audit
procedures.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the management.
(4) Draw conclusions on the appropriateness of the management's use of the going
concern basis. Meanwhile, based on the audit evidence obtained, a conclusion is drawn as
to whether there is a material uncertainty in events or circumstances that may give rise to
significant doubt about the going concern ability of Konka Group Co., Ltd. If we conclude
that a material uncertainty exists, we are required to, in our audit report, draw the attention
of the users of statements to the related disclosures in the financial statements; if such
disclosures are inadequate, we should modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our audit report. However, future events or
circumstances may cause Konka Group Co., Ltd. to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and
whether the financial statements fairly reflect the relevant transactions and events.
(6) Obtain sufficient and appropriate audit evidence regarding the financial information of
the entities or business activities within Konka Group Co., Ltd. to express an opinion on
the financial statements. We are responsible for the direction, supervision and
performance of the group audit, and we remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding the planned scope and
timing of the audit, significant audit findings and other matters, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of this period
and are therefore the key audit matters. We describe these matters in the audit report
unless laws and regulations prohibit public disclosure of these matters, or in extremely rare
circumstances, if it is reasonably expected that the negative consequences of
communicating a matter outweigh the benefits to the public interest, we determine not to
do so.
ShineWing Certified Public Accountants Certified Public Accountant of China:
(Special General Partnership) (Engagement partner)
Certified Public Accountant of China:
Beijing, China April 27, 2026
II. Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
Prepared by Konka Group Co., Ltd.
December 31, 2025
Unit: RMB
Item Ending balance Beginning balance
Current assets:
Monetary funds 6,313,941,885.05 4,115,767,247.73
Settlement reserve
Interbank loans granted
Trading financial assets 202,027,000.00 286,648,129.34
Derivative financial assets
Notes receivable 77,316,985.56 169,675,176.16
Accounts receivable 1,086,929,012.15 1,315,222,656.92
Receivables financing 155,957,556.43 63,943,324.53
Prepayments 96,105,739.60 124,748,412.59
Premiums receivable
Reinsurance receivables
Reinsurance contract reserve
receivable
Other receivables 942,267,792.91 989,245,120.86
Including: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 1,662,246,630.58 2,694,648,186.93
Including: data resources
Contract assets 1,892,306.30 2,630,508.60
Assets held for sale
Current portion of non-current assets
Other current assets 761,567,941.76 2,168,400,012.47
Total current assets 11,300,252,850.34 11,930,928,776.13
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term Receivables
Long-term equity investments 2,026,038,156.99 5,921,501,427.49
Other equity instrument investments 10,213,810.20 16,114,932.00
Other non-current financial assets 1,161,781,213.03 1,802,409,887.89
Investment properties 866,051,475.13 1,650,843,239.51
Item Ending balance Beginning balance
Fixed assets 4,405,958,959.37 5,005,836,928.31
Construction in progress 516,337,481.93 873,042,499.04
Productive biological assets
Oil and gas assets
Right-of-Use Assets 130,076,544.83 178,185,679.35
Intangible assets 772,231,958.52 988,045,525.76
Including: data resources
Development costs
Including: data resources
Goodwill 22,196,735.11
Long-term deferred expenses 453,962,117.69 532,181,161.63
Deferred tax assets 106,993,555.63 1,392,239,301.87
Other non-current assets 601,006,137.59 1,148,677,970.47
Total non-current assets 11,050,651,410.91 19,531,275,288.43
Total assets 22,350,904,261.25 31,462,204,064.56
Current liabilities:
Short-term borrowings 4,575,915,552.66 5,741,171,468.26
Borrowings from the central bank
Interbank loans obtained
Financial liabilities held for trading
Derivative financial liabilities
Notes payable 943,817,767.91 1,150,310,856.70
Accounts payable 1,977,736,371.29 2,774,615,788.24
Advances from customers 3,426,361.65 3,481,262.87
Contract liabilities 256,506,499.39 623,555,669.97
Financial assets sold under
repurchase agreements
Customer deposits and interbank
deposits
Payables for acting trading of
securities
Payables for underwriting of
securities
Employee benefits payable 223,175,513.10 243,731,849.78
Taxes payable 71,276,255.42 94,612,710.58
Other payables 6,565,100,788.16 3,502,796,381.63
Including: interest payable
Dividends Payable
Handling charges and commissions
payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Item Ending balance Beginning balance
Non-current liabilities maturing within
one year
Other current liabilities 46,377,272.29 69,876,531.91
Total current liabilities 18,314,172,997.08 20,859,686,915.13
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 6,537,926,737.54 5,530,649,801.93
Bonds payable 1,596,674,876.37 2,295,193,501.05
Including: preferred shares
Perpetual bonds
Lease liabilities 96,858,968.75 146,561,588.52
Long-term payables 2,033,227.02 5,504,548.24
Long-term employee benefits
payable
Provisions 852,722,866.97 428,433,732.19
Deferred income 408,175,795.51 393,437,007.37
Deferred tax liabilities 114,475,054.80 133,299,175.48
Other non-current liabilities 283,739,354.36 207,378,781.21
Total non-current liabilities 9,897,126,373.19 9,145,066,795.46
Total Liabilities 28,211,299,370.27 30,004,753,710.59
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments 5,000,000,000.00
Including: preferred shares
Perpetual bonds 5,000,000,000.00
Capital reserves 406,579,870.80 512,840,575.73
Less: Treasury shares
Other comprehensive income -1,866,392.91 -9,040,290.32
Specific reserve 17,197,144.62 11,249,678.53
Surplus reserves 1,244,180,364.24 1,244,180,364.24
General risk reserve
Undistributed profits -15,157,108,084.70 -2,574,708,227.90
Total equity attributable to owners of
-6,083,071,689.95 1,592,467,508.28
the parent company
Non-controlling interests 222,676,580.93 -135,017,154.31
Total owners’ equity -5,860,395,109.02 1,457,450,353.97
Total liabilities and owners’ equity 22,350,904,261.25 31,462,204,064.56
Legal representative: Wu Chief finance officer: Yu Head of accounting agency:
Jianjun Huiliang Wang Lihu
Unit: RMB
Item Ending balance Beginning balance
Current assets:
Monetary funds 4,870,422,479.05 2,310,021,016.85
Trading financial assets 202,027,000.00 286,648,129.34
Derivative financial assets
Notes receivable 18,077,864.64
Accounts receivable 3,546,031,483.05 2,783,399,610.31
Receivables financing
Prepayments 3,312,810,262.72 5,060,895,887.42
Other receivables 6,564,549,497.34 8,210,096,432.41
Including: Interest receivable
Dividends receivable 394,828,312.64 397,729,468.60
Inventories 165,333,867.28 143,981,116.62
Including: data resources
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 287,171,986.89 1,621,740,187.04
Total current assets 18,948,346,576.33 20,434,860,244.63
Non-current assets:
Debt investments
Other debt investments
Long-term Receivables
Long-term equity investments 7,947,033,374.38 9,995,056,051.55
Other equity instrument investments 10,213,810.20 10,213,810.20
Other non-current financial assets 202,032,067.00 396,353,137.96
Investment properties 586,120,252.57 873,925,486.40
Fixed assets 375,367,331.52 413,605,136.94
Construction in progress 13,474,434.20 12,762,103.76
Productive biological assets
Oil and gas assets
Right-of-Use Assets 347,027.65
Intangible assets 23,160,095.54 36,845,184.32
Including: data resources
Development costs
Including: data resources
Goodwill
Long-term deferred expenses 20,782,020.29 32,966,195.77
Deferred tax assets 667,646,526.22
Other non-current assets 1,467,871.30 969,222.30
Total non-current assets 9,179,998,284.65 12,440,342,855.42
Total assets 28,128,344,860.98 32,875,203,100.05
Current liabilities:
Short-term borrowings 1,519,153,294.44 2,312,074,875.00
Financial liabilities held for trading
Derivative financial liabilities
Notes payable 25,163,192.12 94,034,764.53
Accounts payable 3,796,563,874.96 6,342,200,859.52
Advances from customers
Contract liabilities 2,699,707,593.73 2,503,838,527.97
Employee benefits payable 37,672,994.15 27,648,867.42
Taxes payable 25,675,833.17 5,299,228.44
Other payables 7,700,994,198.52 5,638,650,473.74
Including: interest payable
Dividends Payable
Liabilities directly associated with assets held for sale
Non-current liabilities maturing within one year 3,387,594,563.88 6,441,534,654.07
Other current liabilities 7,497,034.93 11,512,394.96
Total current liabilities 19,200,022,579.90 23,376,794,645.65
Non-current liabilities:
Long-term borrowings 5,535,100,000.19 4,371,231,706.59
Bonds payable 1,596,674,876.37 2,295,193,501.05
Including: preferred shares
Perpetual bonds
Lease liabilities 367,441.04
Long-term payables
Long-term employee benefits payable
Provisions 346,428,842.60 346,376,800.41
Deferred income 33,164,619.14 42,829,889.81
Deferred tax liabilities 42,603,809.42 34,882,051.56
Other non-current liabilities 52,346,890.08 44,189,363.15
Total non-current liabilities 7,606,686,478.84 7,134,703,312.57
Total Liabilities 26,806,709,058.74 30,511,497,958.22
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments 5,000,000,000.00
Including: preferred shares
Perpetual bonds 5,000,000,000.00
Capital reserves 214,160,914.80 339,889,142.56
Less: Treasury shares
Other comprehensive income -1,360,579.00 -1,281,096.83
Specific reserve
Surplus reserves 1,260,024,039.76 1,260,024,039.76
Undistributed profits -7,559,133,981.32 -1,642,872,351.66
Total owners’ equity 1,321,635,802.24 2,363,705,141.83
Total liabilities and owners’ equity 28,128,344,860.98 32,875,203,100.05
Unit: RMB
Item Year 2025 Year 2024
I. Total revenue 9,835,474,916.53 11,114,763,969.59
Including: operating revenue 9,835,474,916.53 11,114,763,969.59
Interest income
Premiums earned
Handling charge and commission income
II. Total operating costs 11,943,907,187.59 13,545,420,123.09
Including: cost of sales 9,430,717,918.20 10,861,823,991.19
Interest expense
Service fee and commission expense
Surrender payments
Net claims paid
Net change in insurance contract reserves
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 111,476,592.07 125,957,334.99
Selling expenses 647,219,068.47 774,298,036.87
Administrative expenses 564,170,838.00 651,947,833.46
R&D expense 386,105,836.96 416,405,840.34
Finance costs 804,216,933.89 714,987,086.24
Including: Interest expenses 871,624,731.68 953,199,337.05
Interest income 134,366,718.80 215,619,251.81
Add: Other income -544,180,545.00 110,600,310.12
Return on investment (“-” for loss) 277,402,566.69 -40,606,278.44
Including: Investment income from associates and joint
-379,192,413.39 -134,541,620.49
ventures
Income from the derecognition of financial assets at
-3,484,892.68 -4,519,585.64
amortized cost
Exchange gains ("-" for loss)
Net gains on exposure hedges (“-” for loss)
Gains from fair value changes (“-” for loss) -460,420,971.18 -363,008,154.15
Credit impairment loss (“-” for loss) -1,520,599,233.40 -405,967,710.66
Asset impairment loss (“-” for loss) -6,176,184,308.20 -999,416,234.21
Gains on disposal of assets (“-” for loss) 24,500,775.05 13,572,230.63
III. Operating profit ("-" for loss) -10,507,913,987.10 -4,115,481,990.21
Add: Non-operating income 23,053,295.76 36,502,107.29
Less: Non-operating expenses 459,512,872.49 165,575,114.70
IV. Total profit ("-" for total loss) -10,944,373,563.83 -4,244,554,997.62
Less: Income tax expense 1,293,239,956.02 69,552,329.00
V. Net profit ("-" for net loss) -12,237,613,519.85 -4,314,107,326.62
(I) By operating continuity
(II) By ownership
VI. Other comprehensive income (net of tax) 20,737,108.06 -2,130,878.00
Net of tax of other comprehensive income attributable to
owners of the parent company
(I) Other comprehensive income not reclassified to
-5,901,121.80
gains/losses
reclassified to gains/losses under the equity method
-5,901,121.80
instruments
credit risk
(II) Items that will be reclassified to gains/losses 13,075,019.21 4,403,268.12
gains/losses under the equity method
obligations
reclassification of financial assets
debt obligations
currency-denominated financial statements
Other comprehensive income attributable to non-
controlling interests (net of tax)
VII. Total comprehensive income -12,216,876,411.79 -4,316,238,204.62
Total comprehensive income attributable to owners of the
-12,575,225,959.39 -3,721,153,953.66
parent company
Total comprehensive income attributable to non-
controlling interests
VIII. Earnings per share
(i) Basic earnings per share -5.2254 -1.5472
(ii) Diluted earnings per share -5.2254 -1.5472
Legal representative: Wu Chief Accounting Officer: Yu Head of Accounting
Jianjun Huiliang Agency: Wang Lihu
Unit: RMB
Item Year 2025 Year 2024
I. Operating revenue 1,487,823,908.56 1,908,123,924.10
Less: Cost of sales 1,446,499,439.75 1,974,494,601.29
Taxes and surcharges 15,156,638.24 16,346,162.85
Selling expenses 67,925,310.67 96,063,419.94
Administrative expenses 170,375,206.05 185,596,812.40
R&D expense 21,951,046.63 27,710,971.97
Finance costs 662,683,255.63 548,355,214.80
Including: Interest expenses 796,095,346.77 821,872,300.41
Interest income 202,015,820.38 252,748,895.39
Add: Other income -93,932,230.64 8,811,847.96
Return on investment (“-” for loss) 594,647,384.74 31,201,053.12
Including: Investment income from associates and joint
-72,737,179.87 -29,330,307.37
ventures
Income from the derecognition of financial assets at
-226,103.98 -1,332,512.07
amortized cost (“-” for loss)
Net gains on exposure hedges (“-” for loss)
Gains from fair value changes (“-” for loss) -14,563,367.28 -166,949,370.96
Credit impairment loss (“-” for loss) -2,953,870,112.05 -139,627,123.83
Asset impairment loss (“-” for loss) -1,888,551,900.26 -278,537,119.21
Gains on disposal of assets (“-” for loss) 11,634,852.64 2,842,206.14
II. Operating profit (“-” for loss) -5,241,402,361.26 -1,482,701,765.93
Add: Non-operating income 1,838,690.46 11,728,990.17
Less: Non-operating expenses 1,345,966.57 71,044,286.57
III. Profit before tax (“-” for loss) -5,240,909,637.37 -1,542,017,062.33
Less: Income tax expense 675,368,284.08 484,375,831.98
IV. Net profit (“-” for net loss) -5,916,277,921.45 -2,026,392,894.31
(I) Net profit from continuing operations (“-” for net loss) -5,916,277,921.45 -2,026,392,894.31
(II) Net profit from discontinued operations (“-” for net
loss)
V. Other comprehensive income (net of tax) -79,482.17 118,274.81
(I) Other comprehensive income not reclassified to
gains/losses
reclassified to gains/losses under the equity method
instruments
credit risk
(II) Items that will be reclassified to gains/losses -79,482.17 118,274.81
-79,482.17 118,274.81
gains/losses under the equity method
obligations
reclassification of financial assets
debt obligations
currency-denominated financial statements
VI. Total comprehensive income -5,916,357,403.62 -2,026,274,619.50
VII. Earnings per share
(i) Basic earnings per share
(ii) Diluted earnings per share
Unit: RMB
Item Year 2025 Year 2024
I. Cash flows from operating activities:
Cash received from sale of goods and rendering of
services
Net increase in customer deposits and interbank deposits
Net increase in borrowings from the central bank
Net increase in loans from other financial institutions
Premiums received on original insurance contracts
Net proceeds from reinsurance
Net increase in deposits and investments of policyholders
Interest, service fee, 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 117,771,372.96 203,389,517.86
Cash generated from other operating activities 375,127,689.39 464,756,959.63
Subtotal of cash generated from operating activities 9,034,146,586.16 11,193,611,750.42
Cash paid for purchase of goods and services 8,243,073,801.04 8,054,236,938.71
Net increase in loans and advances to customers
Net increase in deposits in the central bank and in
interbank loans granted
Payments in cash for claims on original insurance
contracts
Net increase in interbank loans granted
Interest, service fee, and commissions paid
Policy dividends paid
Cash paid to and for employees 1,381,510,575.23 1,561,187,041.71
Taxes paid 265,972,133.63 402,970,523.26
Cash used in other operating activities 754,590,197.45 1,001,328,403.75
Subtotal of cash used in operating activities 10,645,146,707.35 11,019,722,907.43
Net cash generated from/used in operating activities -1,611,000,121.19 173,888,842.99
II. Cash flows from investing activities:
Cash received from recovery of investments 1,408,421,673.50 441,500,809.51
Cash received from investment income 16,052,167.04 37,170,842.27
Net cash received from disposal of fixed assets, intangible
assets and other long-term assets
Net cash received from disposal of subsidiaries and other
business units
Cash generated from other investing activities 37,622,486.48 186,665,829.14
Subtotal of cash generated from investing activities 1,591,759,139.28 725,004,698.10
Payments in cash for the acquisition of fixed assets,
intangible assets and other long-lived assets
Cash paid for investments 131,920,867.57 1,400,000.00
Net increase in pledged loans granted
Net payments for the acquisition of subsidiaries and other
business units
Cash used in other investing activities 25,451,163.26 134,327,401.00
Subtotal of cash used in investing activities 449,279,879.19 756,209,896.13
Net cash generated from/used in investing activities 1,142,479,260.09 -31,205,198.03
III. Cash flows from financing activities:
Capital contributions received 5,003,000,000.00 167,597,297.30
Including: Capital contributions by non-controlling
interests to subsidiaries
Cash received from borrowings 12,475,924,439.29 11,581,264,358.29
Cash generated from other financing activities 5,239,756,771.19 898,936,642.13
Subtotal of cash generated from financing activities 22,718,681,210.48 12,647,798,297.72
Cash paid for repayment of borrowings 16,411,751,361.52 13,426,379,153.79
Cash payments for distribution of dividends, profit or
repayment of interest
Including: Dividends and profits paid to minority
shareholders by subsidiaries
Cash paid for other financing activities 3,024,390,098.41 1,686,969,576.16
Subtotal of cash outflows from financing activities 20,015,510,139.99 15,690,719,013.11
Net cash from financing activities 2,703,171,070.49 -3,042,920,715.39
IV. Effect of exchange rate changes on cash and cash
equivalents
V. Net increase in cash and cash equivalents 2,237,292,033.81 -2,891,606,873.10
Add: Cash and cash equivalents at the beginning of the
period
VI. Cash and cash equivalents at the end of the period 5,020,469,510.26 2,783,177,476.45
Unit: RMB
Item Year 2025 Year 2024
I. Cash flows from operating activities:
Cash received from sale of goods and rendering of
services
Tax rebates 12,249,617.84 60,530,397.37
Cash generated from other operating activities 110,856,652.54 141,831,895.20
Subtotal of cash generated from operating activities 3,498,575,193.59 6,600,548,501.79
Cash paid for purchase of goods and services 4,545,537,654.60 5,971,237,961.40
Cash paid to and for employees 124,225,722.04 179,067,665.39
Taxes paid 20,546,050.48 39,982,463.72
Cash used in other operating activities 369,257,212.81 307,674,460.32
Subtotal of cash used in operating activities 5,059,566,639.93 6,497,962,550.83
Net cash generated from/used in operating activities -1,560,991,446.34 102,585,950.96
II. Cash flows from investing activities:
Cash received from recovery of investments 1,383,353,674.50 250,174,642.36
Cash received from investment income 14,638,976.67 32,599,531.28
Net cash received from disposal of fixed assets, intangible
assets and other long-term assets
Net cash received from disposal of subsidiaries and other
business units
Cash generated from other investing activities 1,159,341,746.08 5,599,069,603.94
Subtotal of cash generated from investing activities 2,584,652,327.04 5,888,921,250.16
Payments in cash for the acquisition of fixed assets,
intangible assets and other long-lived assets
Cash paid for investments 132,180,867.57 770,369,387.85
Net payments for the acquisition of subsidiaries and other
business units
Cash used in other investing activities 1,087,593,344.00 5,493,614,221.91
Subtotal of cash used in investing activities 1,227,453,869.71 6,292,181,679.23
Net cash generated from/used in investing activities 1,357,198,457.33 -403,260,429.07
III. Cash flows from financing activities:
Capital contributions received 5,000,000,000.00
Cash received from borrowings 10,674,181,738.88 9,062,107,916.66
Cash generated from other financing activities 10,067,901,149.24 9,436,937,293.60
Subtotal of cash generated from financing activities 25,742,082,888.12 18,499,045,210.26
Cash paid for repayment of borrowings 14,237,314,671.01 10,898,013,880.45
Cash payments for distribution of dividends, profit or
repayment of interest
Cash paid for other financing activities 8,084,015,832.13 9,422,438,355.78
Subtotal of cash outflows from financing activities 22,897,153,699.38 20,884,597,399.98
Net cash from financing activities 2,844,929,188.74 -2,385,552,189.72
IV. Effect of exchange rate changes on cash and cash 1,566,083.68 4,656,657.45
equivalents
V. Net increase in cash and cash equivalents 2,642,702,283.41 -2,681,570,010.38
Add: Cash and cash equivalents at the beginning of the
period
VI. Cash and cash equivalents at the end of the period 4,224,451,561.79 1,581,749,278.38
Current period amount
Unit: RMB
Year 2025
Equity attributable to owners of the parent company
Non-
Item Other equity instruments Less: Gener Total
Other controllin
Share Preferre Capital Treasur Specific Surplus al risk Undistribut Other owners’
Perpetual Other comprehensi Subtotal g
capital d reserves y reserve reserves reserv ed profits s equity
bonds s ve income interests
shares shares e
I. Balance at
the end of - -
-9,040,290.32 1,797,506,898.0 135,017,154.
the previous 8 31
year
Add:
Adjustment
for change in
accounting
policy
Correction of
prior period -777,201,329.82 -777,201,329.82 -777,201,329.82
errors
Others
II. Balance at
the - -
-9,040,290.32 2,574,708,227.9 135,017,154.
beginning of 0 31
the year
III. Change
amount
- - - -
during the 5,000,000,000.
current 93 80 3 9
period (use “-
” for
Year 2025
Equity attributable to owners of the parent company
Non-
Item Other equity instruments Less: Gener Total
Other controllin
Share Preferre Capital Treasur Specific Surplus al risk Undistribut Other owners’
Perpetual Other comprehensi Subtotal g
capital d reserves y reserve reserves reserv ed profits s equity
bonds s ve income interests
shares shares e
decreases)
(I) Total - - -
comprehensi 7,173,897.41 12,582,399,856. 12,575,225,959.
ve income
(II) Capital
increase and -
reduction by 93
owners
shares
contributed
by owners
contributed
by holders of
other equity
instruments
share-based
payments
included in
owners’
equity
-111,051,401.01
(III) Profit
-926,283.41 -926,283.41
distribution
Year 2025
Equity attributable to owners of the parent company
Non-
Item Other equity instruments Less: Gener Total
Other controllin
Share Preferre Capital Treasur Specific Surplus al risk Undistribut Other owners’
Perpetual Other comprehensi Subtotal g
capital d reserves y reserve reserves reserv ed profits s equity
bonds s ve income interests
shares shares e
surplus
reserve
general risk
reserve
Distributions
to owners (or -926,283.41 -926,283.41
shareholders
)
(IV) Internal
transfers
within
owners’
equity
increase (or
share
capital) from
capital
reserve
increase (or
share
capital) from
Year 2025
Equity attributable to owners of the parent company
Non-
Item Other equity instruments Less: Gener Total
Other controllin
Share Preferre Capital Treasur Specific Surplus al risk Undistribut Other owners’
Perpetual Other comprehensi Subtotal g
capital d reserves y reserve reserves reserv ed profits s equity
bonds s ve income interests
shares shares e
surplus
reserve
offset by
surplus
reserve
in defined
benefit plans
transferred to
retained
earnings
comprehensi
ve income
transferred to
retained
earnings
(V) Special 5,947,466.0
reserves
Appropriated 7,743,491.9
in the current
period
the current
Year 2025
Equity attributable to owners of the parent company
Non-
Item Other equity instruments Less: Gener Total
Other controllin
Share Preferre Capital Treasur Specific Surplus al risk Undistribut Other owners’
Perpetual Other comprehensi Subtotal g
capital d reserves y reserve reserves reserv ed profits s equity
bonds s ve income interests
shares shares e
period
(VI) Others 00 0 0
IV. Balance
at the end of - - -
-1,866,392.91 15,157,108,084. 6,083,071,689.9 5,860,395,109.0
the current 70 5 2
period
Amount of previous period
Unit: RMB
Year 2024
Equity attributable to owners of the parent company
Item Other equity instruments Less: Gener Non- Total
Other controlling owners’
Share Preferre Capital Treasur Specific Surplus al risk Undistribute Other
Perpetu Other comprehensi Subtotal interests equity
capital d reserves y reserve reserves reserv d profits s
al bonds s ve income
shares shares e
I. Balance at
the end of the 00 76
-13,443,558.44
previous year
Add:
Adjustment
for change in
accounting
policy
Correction of
- -
prior period -347,232,776.81
errors
Others
II. Balance at
the beginning 00 76
-13,443,558.44
of the year
III. Change
amount
during the - - - - -
current 13,658,931.0 4,403,268.12
period (use “-
” for
decreases)
- - - -
(I) Total 4,403,268.12 3,725,557,221.7 3,721,153,953. 595,084,250. 4,316,238,204.
comprehensi 8 66 96 62
Year 2024
Equity attributable to owners of the parent company
Item Other equity instruments Less: Gener Non- Total
Other controlling owners’
Share Preferre Capital Treasur Specific Surplus al risk Undistribute Other
Perpetu Other comprehensi Subtotal interests equity
capital d reserves y reserve reserves reserv d profits s
al bonds s ve income
shares shares e
ve income
(II) Capital
increase and -
reduction by 3
owners
shares 167,597,297.
contributed
by owners
contributed
by holders of
other equity
instruments
share-based
payments
included in
owners’
equity
(III) Profit
distribution
surplus
reserve
Year 2024
Equity attributable to owners of the parent company
Item Other equity instruments Less: Gener Non- Total
Other controlling owners’
Share Preferre Capital Treasur Specific Surplus al risk Undistribute Other
Perpetu Other comprehensi Subtotal interests equity
capital d reserves y reserve reserves reserv d profits s
al bonds s ve income
shares shares e
general risk
reserve
Distributions
-1,168,043.64 -1,168,043.64
to owners (or
shareholders)
(IV) Internal
transfers
within
owners’
equity
increase (or
share capital)
from capital
reserve
increase (or
share capital)
from surplus
reserve
offset by
surplus
reserve
Year 2024
Equity attributable to owners of the parent company
Item Other equity instruments Less: Gener Non- Total
Other controlling owners’
Share Preferre Capital Treasur Specific Surplus al risk Undistribute Other
Perpetu Other comprehensi Subtotal interests equity
capital d reserves y reserve reserves reserv d profits s
al bonds s ve income
shares shares e
in defined
benefit plans
transferred to
retained
earnings
comprehensi
ve income
transferred to
retained
earnings
(V) Special 6,592,190.2
reserves
Appropriated 7,881,927.4
in the current
period
the current 0
period
(VI) Others
IV. Balance
at the end of - -
-9,040,290.32 2,574,708,227.9 135,017,154.
the current 0 31
period
Current period amount
Unit: RMB
Year 2025
Other equity instruments Less: Other Total
Item Share Capital Specific Surplus Undistributed
Preferred Perpetual Treasury comprehensive Others owners’
capital Others reserves reserve reserves profits
shares bonds shares income equity
I. Balance at the
end of the previous 2,407,945,408.00 339,889,142.56 -1,281,096.83 1,260,024,039.76 -1,199,867,554.61 2,806,709,938.88
year
Add: Adjustment
for change in
accounting policy
Correction of prior
-443,004,797.05 -443,004,797.05
period errors
Others
II. Balance at the
beginning of the 2,407,945,408.00 339,889,142.56 -1,281,096.83 1,260,024,039.76 -1,642,872,351.66 2,363,705,141.83
year
III. Change amount
during the current - -
period (use “-” for
decreases)
(I) Total
comprehensive -79,482.17 -5,916,277,921.45
income
(II) Capital increase
and reduction by 5,000,000,000.00
owners
contributed by
Year 2025
Other equity instruments Less: Other Total
Item Share Capital Specific Surplus Undistributed
Preferred Perpetual Treasury comprehensive Others owners’
capital Others reserves reserve reserves profits
shares bonds shares income equity
owners
contributed by
holders of other
equity instruments
share-based
payments included
in owners’ equity
-125,728,227.76
(III) Profit
distribution
surplus reserve
owners (or
shareholders)
(IV) Internal
transfers within
owners’ equity
(or share capital)
from capital
reserve
(or share capital)
from surplus
Year 2025
Other equity instruments Less: Other Total
Item Share Capital Specific Surplus Undistributed
Preferred Perpetual Treasury comprehensive Others owners’
capital Others reserves reserve reserves profits
shares bonds shares income equity
reserve
surplus reserve
defined benefit
plans transferred to
retained earnings
comprehensive
income transferred
to retained
earnings
(V) Special
reserves
the current period
current period
(VI) Others
IV. Balance at the
end of the current 2,407,945,408.00 5,000,000,000.00 214,160,914.80 -1,360,579.00 1,260,024,039.76 -7,559,133,981.32 1,321,635,802.24
period
Amount of previous period
Unit: RMB
Year 2024
Item
Share Other equity instruments Capital Less: Other Specific Surplus Undistributed Others Total
capital reserves Treasury comprehensive reserve reserves profits owners’
shares income equity
Preferred Perpetual
Others
shares bonds
I. Balance at the end
of the previous year
Add: Adjustment for
change in accounting
policy
Correction of prior
-190,788,098.63 -190,788,098.63
period errors
Others
II. Balance at the
beginning of the year
III. Change amount
during the current -
-1,340,608.19 118,274.81 -2,002,873,099.47
period (use “-” for
decreases)
(I) Total
comprehensive 118,274.81 -2,026,392,894.31
income
(II) Capital increase
and reduction by -1,340,608.19 -1,340,608.19
owners
contributed by owners
by holders of other
equity instruments
based payments
included in owners’
equity
Year 2024
Other equity instruments Less: Other Total
Item Share Capital Specific Surplus Undistributed
Preferred Perpetual Treasury comprehensive Others owners’
capital Others reserves reserve reserves profits
shares bonds shares income equity
(III) Profit distribution 23,519,794.84 23,519,794.84
reserve
owners (or
shareholders)
(IV) Internal transfers
within owners’ equity
share capital) from
capital reserve
share capital) from
surplus reserve
surplus reserve
benefit plans
transferred to retained
earnings
comprehensive
income transferred to
retained earnings
(V) Special reserves
Year 2024
Other equity instruments Less: Other Total
Item Share Capital Specific Surplus Undistributed
Preferred Perpetual Treasury comprehensive Others owners’
capital Others reserves reserve reserves profits
shares bonds shares income equity
current period
period
(VI) Others
IV. Balance at the end
of the current period
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
I. Company Profile
including subsidiaries), is a joint-stock limited company reorganized from the former
Shenzhen Konka Electronic Co., Ltd. in August 1991 upon approval of the People’s
Government of Shenzhen Municipality, and has its ordinary shares (A-share and B-share)
listed on Shenzhen Stock Exchange with prior consent from the People’s Bank of China
Shenzhen Special Economic Zone Branch. On August 29, 1995, the Company was
renamed “Konka Group Co., Ltd.” (Unified Social Credit Code: 914403006188155783),
with its main business in the electronic industry. Now the headquarters is located at No. 28,
No. 12 Keji South Road, Science & Technology Park, Yuehai Street, Nanshan District,
Shenzhen, Guangdong Province.
After the distribution of bonus shares, allotments, increase in share capital and issuance of
new shares over the years, as of December 31, 2025, the Company has issued a total of
RMB2,407,945,408.00.
The Group is mainly engaged in consumer electronics and semiconductor businesses,
conducting the production and sales of color TVs, white goods, optoelectronic displays,
storage, and printed circuit boards, etc.
disclosure on April 27, 2026.
II. Scope of the Consolidated Financial Statements
The scope of the Group's consolidated financial statements covers 104 subsidiaries, such
as Shenzhen Konka Electronics Technology Co., Ltd., Anhui Konka Electronics Co., Ltd.,
and Dongguan Konka Electronics Co., Ltd. Compared with the previous year, the Group
lost control over its subsidiary, Kangrong Jiayuan Technology (Zhejiang) Co., Ltd., due to
an equity transfer during the current year.
For details, please refer to Note VIII “Changes in the Consolidation Scope” and Note IX
“Equity in Other Entities” herein.
Checklist of Company Name and Abbreviation in this Report
No. Company name Abbreviation
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
No. Company name Abbreviation
Shenzhen Kangcheng Technology Innovation and Development Co.,
Ltd.
Chuzhou Konka Precision Intelligent Manufacturing Technology Co.,
Ltd.
Suining Electronic Technology
Innovation
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
No. Company name Abbreviation
Development of science and
technology industry
Xinying Semiconductor (Hong
Kong)
Shenzhen Chuangzhi Electrical
Appliances
Hong Kong Konka
Communications
Chongqing Optoelectronic
Technology
Ningbo Kanghanrui Electric
Appliances
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
No. Company name Abbreviation
Zhongkang Semiconductor
(Shaoxing)
Shenzhen Kanghong Dongsheng Investment Partnership (Limited
Partnership)
Guizhou Konka New Material
Technology
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
No. Company name Abbreviation
Shangrao Konka Electronic
Technology Innovation
Zhejiang Konka Technology
Industries
Xi'an Kanghong Technology
Industry
III. Basis for the Preparation of Financial Statements
The Group's financial statements were prepared based on actual transactions and events,
in accordance with the Accounting Standards for Business Enterprises promulgated by the
Ministry of Finance as well as its application guidelines, interpretations and other related
regulations (hereinafter collectively referred to as the "Accounting Standards for Business
Enterprises"), as well as the disclosure regulations of the General Provisions on Financial
Reporting No. 15 for Companies Publicly Issuing Securities (revised in 2023) by the CSRC.
The consolidated net profit of Konka Group in 2025 was RMB -122.38 hundred million. As
of December 31, 2025, the Group's net assets in the consolidated financial statements
were RMB -58.60 hundred million, with a debt-to-asset ratio of 126.22%.
In view of the above, when assessing the Group's ability to continue as a going concern,
the Board of Directors of the Group has prudently considered the Group's future strategic
adjustments and business strategies, operating conditions, working capital and available
sources of financing. The Group has formulated the following plans and measures to
reduce the pressure on working capital and improve its financial position:
(1) On December 29, 2025, the National Development and Reform Commission and the
Ministry of Finance officially issued the "Notice on the Implementation of the Policy for
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Large-scale Equipment Renewal and Consumer Goods Trade-in in 2026", which provides
special financial subsidies for the renewal of six major categories of home appliances and
equipment. The Group will take this opportunity to accelerate the transformation and
upgrading of its home appliance business to effectively promote the improvement of its
operating performance.
(2) The Group will adhere to the long-term value-oriented business guideline, focus on the
development of its main business, optimize asset allocation, and enhance lean
management. On the one hand, with focus on the optimization and reshaping of existing
businesses, the Group will comprehensively enhance the efficiency of the entire chain of
R&D, production, supply, sales, and service to achieve significant loss reduction in existing
businesses; on the other hand, the Group will deepen research and analysis around the
"9+6" strategic emerging industries to seek innovative drivers for its high-quality
development.
(3) Take active measures to revitalize various stock resources and accelerate the recovery
of funds. The Group established a specific department engaged in promoting the exit and
divestment of "non-core and non-advantageous" businesses and assets, and utilizing
external resources to shorten the disposal and revitalization period of inefficient assets.
(4) Bank credit lines are relatively stable. The Group will continue to deepen its strategic
cooperation with commercial banks, actively expand financing channels, and alleviate the
pressure on working capital.
After fully considering the various measures mentioned above that the Group is
implementing or plans to implement, the Board of Directors of the Group believes that it is
appropriate to prepare these financial statements on a going concern basis for at least 12
months from December 31, 2025. However, future events or circumstances may result in
significant uncertainty in the implementation of the above-mentioned measures, including
the effectiveness of measures such as exiting non-core businesses and revitalizing
existing assets. The renewal of bank credit loans and acquisition of new financing depend
on the Group's communication with commercial banks. If the relevant improvement
measures of the Group fail to be implemented as planned or achieve the expected results,
the Company may cease to continue as a going concern, hence the uncertainty about the
going-concern ability.
IV. Significant Accounting Policies and Accounting Estimates
Specific accounting policies and accounting estimates: The specific accounting policies
and accounting estimates formulated by the Group according to the actual production and
operation characteristics include provisions for bad debts of accounts receivable,
provisions for inventory depreciation, depreciation of fixed assets, revenue recognition and
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
measurement, etc.
Enterprises
The financial statements prepared by the Group are in compliance with the Accounting
Standards for Business Enterprises, which factually, accurately and completely present the
Company's and the Group's financial positions as of December 31, 2025, business results
and cash flows, and other relevant information for 2025.
The Group's fiscal period starts from January 1 to December 31 of the Gregorian calendar.
The normal operating cycle refers to the period from the purchase of assets for processing
to the realization of cash or cash equivalents by the Group. An operating cycle for the
Group is 12 months, which is also the classification criterion for the liquidity of its assets
and liabilities.
The Company uses RMB as the recording currency. Subsidiaries of the Group determine
their functional currency according to the main economic environment in which they
operate. When preparing the financial statements, the Group converts them into RMB
according to the method described in IV.10(2) Conversion of foreign currency financial
statements.
The Group prepares and discloses financial statements adhering to the principle of
materiality. The disclosures in the notes to the financial statements cover matters involving
judgments about materiality criteria, the methods for determining materiality thresholds,
and the bases for selecting these criteria:
Location of disclosure of this matter Methodology for Determining
Disclosures involving materiality
in the notes to the present financial Materiality Criteria and Basis for
standard judgments
statements Selection
Significant individually bad debt Individual amount exceeding
Note VI.4. Accounts receivable (2)
provisioned receivables RMB50 million
Receivables with significant amount
Individual amount exceeding
of bad debt provision recovered or Note VI.4. Accounts receivable (3)
RMB10 million
reversed during the year
Write-off of significant receivables in Individual amount exceeding
Note VI.4. Accounts receivable (4)
the year RMB10 million
Significant accounts payable aged Individual amount exceeding
Note VI.26. Accounts payable
over 1 year RMB10 million
Significant receipts in advance and
Note VI.28; note VI.29; note VI.39; note Individual amount exceeding
contractual liabilities/projected
VI.27; RMB10 million
liabilities/other payables aged over 1
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Location of disclosure of this matter Methodology for Determining
Disclosures involving materiality
in the notes to the present financial Materiality Criteria and Basis for
standard judgments
statements Selection
year
Increase or decrease in a single
Significant construction in progress
Note VI.16. Construction in progress (2) asset during the year or a balance
projects
exceeding RMB100 million
Those Not Under Common Control
(1) Business combinations under common control
A business combination involving entities under common control is a business combination
in which all of the combining enterprises are ultimately controlled by the same party or
parties both before and after the combination, and that control is not transitory.
As the combining party, the assets and liabilities obtained by the Group in a business
combination under the same control shall be measured on the basis of their book value in
the final controlling party on the combining date. The difference between the book value of
the net assets acquired and the book value of the consideration paid for the combination
(or the total par value of the shares issued) is used to adjust the capital reserves; in case
the capital reserves are insufficient to cover the difference, the retained earnings will be
adjusted.
(2) Business combinations not under common control
A business combination involving entities not under common control is a business
combination in which all of the combining enterprises are not ultimately controlled by the
same party or parties both before and after the combination.
As purchaser, the identifiable assets, liabilities and contingent liabilities of the acquiree
acquired in the business combination not under common control shall be measured at fair
value on the acquisition date. The difference of the combination costs in excess of the fair
value of the identifiable net assets acquired from the acquiree shall be recognized as
goodwill; if the combination costs are less than the fair value of the identifiable net assets
acquired from the acquiree in the combination, the fair values of the identifiable assets,
liabilities and contingent liabilities acquired from the combination, as well as the
combination costs, shall be reviewed first. After review, if the combination costs are still
less than the fair value, the difference shall be included in the current non-operating
revenue of the combination.
Statements
The scope of consolidation for the consolidated financial statements of the Group is based
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
on control, including the Company and all its subsidiaries (including enterprises, divisible
parts of investees, and structured entities controlled by the Company). The Group
assesses control based on whether it has power over the investee, has exposure or rights
to variable returns from its involvement with the investee, and has the ability to use its
power over the investee to affect the amount of the investor's returns.
The financial statements of subsidiaries are adjusted in accordance with the accounting
policies and accounting period of the Group during the preparation of the consolidated
financial statements, where the accounting policies and the accounting periods are
inconsistent between the Group and subsidiaries.
The impact of internal transactions between the Company and its subsidiaries, as well as
between subsidiaries and each other, is offset in consolidation. The shares of the
subsidiary's owner's equity that do not belong to the parent Group and the shares of
minority shareholders' equity in current net gains/losses, other comprehensive income and
total comprehensive income shall be respectively listed in the consolidated financial
statement "Minority shareholders' equity, minority shareholders' net gains/losses, other
comprehensive income that belongs to minority shareholders and total comprehensive
income that belongs to minority shareholders".
For subsidiaries acquired through business combinations under the same control, their
operating results and cash flows are included in the consolidated financial statements from
the beginning of the current combination period. When preparing the comparative
consolidated financial statements, the relevant items in the financial statements of the
previous year shall be adjusted as if the consolidated reporting entity had existed since the
final controlling party began to control it.
Where the equity of an investee under common control is acquired in stages through
multiple transactions, ultimately resulting in a business combination, when preparing the
consolidated financial statements, adjustments are made as if the entity had existed in its
current state from the time the ultimate controlling party obtained control. When preparing
comparative financial statements, the relevant assets and liabilities of the acquiree are
consolidated into the Group's comparative consolidated financial statements, limited to a
point in time not earlier than when both the Group and the acquiree were under the control
of the same ultimate controlling party. The net assets increased as a result of the
combination are used to adjust the relevant items under owner's equity in the comparative
financial statements. To avoid double-counting the value of the acquiree's net assets, for
any long-term equity investment held by the Group before the combination is achieved, the
related gains/losses, other comprehensive income, and other changes in net assets
recognized from the later of the date the original equity was acquired and the date the
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Company and the acquiree came under the control of the same ultimate controlling party,
up to the combination date, shall be offset against the opening retained earnings and
current gains/losses of the comparative reporting period, respectively.
For subsidiaries acquired through business combination under different control, the
operating results and cash flow shall be included in the consolidated financial statements
from the date when the Group obtains the control right. When preparing the consolidated
financial statements, the financial statements of the subsidiaries shall be adjusted on the
basis of the fair value of the identifiable assets, liabilities and contingent liabilities
determined on the acquisition date.
For a business combination achieved in stages, where equity interests in the acquiree are
obtained through multiple transactions and ultimately result in a business combination not
under common control, the previously held equity interest shall be remeasured at its fair
value on the acquisition date. Any difference between the fair value and its carrying
amount shall be recognized in current investment income; with respect to the previously
held equity interest in the acquiree, any amounts recognized in other comprehensive
income under the equity method, as well as other changes in owners’ equity other than net
gains/losses, other comprehensive income and profit distributions, shall be reclassified to
current investment income in the period of the acquisition date. However, this excludes
other comprehensive income arising from remeasurement of the net defined benefit
liability or asset of the investee.
When the Group disposes of a portion of its long-term equity investment in a subsidiary
without losing control, the difference in the consolidated financial statements between the
proceeds from the disposal and the subsidiary's share of net assets, calculated
continuously from the acquisition date or combination date, corresponding to the disposed
long-term equity investment, is adjusted against capital premium or share premium. If the
capital reserve is insufficient to absorb the difference, retained earnings are adjusted.
If the Group loses control over an investee due to reasons such as the disposal of a
portion of its equity investment, when preparing the consolidated financial statements, the
remaining equity is remeasured at its fair value on the date of loss of control. The
difference between the total of the consideration received from the disposal of equity and
the fair value of the remaining equity, minus the share of the original subsidiary's net
assets calculated continuously from the acquisition or combination date based on the
original shareholding percentage, is recognized in investment income for the period in
which control is lost, and goodwill is derecognized at the same time. Other comprehensive
income and other items related to the original equity investment in the subsidiary are
reclassified to investment income for the current period upon loss of control.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
If the Group disposes of its equity investment in a subsidiary in stages through multiple
transactions until control is lost, and if these transactions are part of a single transaction
package, all transactions shall be accounted for as a single transaction of disposing of a
subsidiary and losing control; however, the difference between the disposal proceeds and
the share of net assets of the subsidiary corresponding to the investment disposed of for
each disposal prior to the loss of control shall be recognized as other comprehensive
income in the consolidated financial statements, and shall be reclassified to investment
income in the period in which control is lost.
Joint Operations
The Group's joint arrangements include joint operations and joint ventures. For a joint
operation, the Group, as a joint operator, recognizes the assets and liabilities that it holds
and bears in the joint operation, and recognizes the jointly-held assets and jointly-borne
liabilities according to the Group’s stake in the joint operation; recognizes relevant income
and expense according to the Group’s stake in the joint operation. When the Group
purchases from or sells to the joint operation assets that do not constitute a business, the
Group only recognizes the share of the other joint operators in the gains/losses arising
from the transaction.
Cash in the Group's statement of cash flows refers to cash on hand and unrestricted
deposits. For the purpose of the statement of cash flows, cash equivalents refer to highly
liquid investments that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of change in value with a holding period of not more than 3
months.
Statements
(1) Foreign Currency Transactions
Foreign currency transactions of the Group are initially recognized at the exchange rate at
the beginning of the month of the transaction date (usually referring to the middle rate of
the foreign exchange rate announced by the People's Bank of China on the day, the same
below), converting the foreign currency amount into the functional currency amount. On
the balance sheet date, the monetary items in foreign currency were converted into RMB
at the spot exchange rate on balance sheet date. Except the exchange difference arising
from special foreign-currency borrowing for the purpose of construction or production of
assets meeting capitalization conditions treated in the principle of capitalization, the
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
conversion difference was directly included in the current gains/losses.
(2) Translation of Foreign Currency Financial Statements
When preparing the consolidated financial statements, the Group translates the financial
statements of overseas operations into RMB, in which: assets and liabilities in the foreign
currency balance sheet are translated at the spot exchange rate on the balance sheet date;
owners' equity items, except for "undistributed profits", are translated at the spot exchange
rate when the business occurs; the income and expense items in the income statement
are translated at the average exchange rate of the current period (the average exchange
rate of the month) on the date when the transactions occur. The conversion difference of
foreign currency statements arising from the aforementioned conversion is presented in
other comprehensive income item. The foreign currency cash flow is converted at the
average exchange rate for the period (monthly average exchange rate) of the cash flow
occurrence date. The amount of exchange rate change influence on cash is independently
presented in the cash flow statement.
(1) Recognition and derecognition of financial instruments
The Group recognizes a financial asset or financial liability when it becomes a party to the
contractual provisions of a financial instrument.
If the following conditions are met, a financial asset (or a part of a financial asset, or a part
of a group of similar financial assets) shall be derecognized, that is, the previously
recognized financial asset shall be transferred from the balance sheet: 1) the right to
receive the cash flows of the financial asset expires; 2) When the financial assets are
transferred, the Group has transferred almost all the risks and rewards of ownership of the
financial assets; 3) When a financial asset is transferred, the Group neither transfers nor
retains substantially all the risks and rewards of ownership of the financial asset, nor
retains control over the financial asset.
When the current obligation of financial liabilities (or partial financial liabilities) has been
completely or partially discharged, derecognition of such financial liabilities (or partial
financial liabilities) is conducted by the Group. If the Group (borrower) concludes an
agreement with the lender to replace existing financial liabilities with new ones and
contractual terms of new financial liabilities are different from those of existing financial
liabilities, derecognition of existing financial liabilities and recognition of new financial
liabilities shall be conducted. When there is a material alteration of contractual terms of
existing financial liabilities (partial financial liabilities) by the Group, derecognition of
existing financial liabilities and recognition of new financial liabilities as per modified terms
shall be conducted. The difference between the book value of the derecognized part and
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
the consideration paid is included in the current gains/losses.
All regular acquisitions or sales of financial assets are recognized and derecognized on a
transaction date basis.
(2) Classification and Measurement of Financial Assets
At initial recognition, the Group's financial assets are classified into financial assets
measured at amortized cost, financial assets measured at fair value through other
comprehensive income, and financial assets measured at fair value through current
gains/losses according to the Group's business model for managing financial assets and
the contractual cash flow characteristics of financial assets. All affected related financial
assets will be reclassified if and only when the Group changes its business model for
managing financial assets.
The Group classifies the financial assets meeting the following conditions simultaneously
as financial assets measured at amortized cost: ① The business model for managing the
financial assets aims at collecting contractual cash flows. ② The contractual terms of the
financial assets stipulate that the cash flows generated on specified dates solely represent
payments of principal and interest based on the outstanding principal amount. These
financial assets are initially measured at fair value, and relevant transaction costs are
included into the initially recognized amount; subsequent measurement is carried out at
amortized cost. Except for those designated as hedge items, the difference between the
initial recognized amount and the amount due shall be amortized at actual interest rate
and their amortization, impairment and exchange gains/losses as well as gains or losses
arising from derecognition shall be recorded into the current gains/losses.
The Group classifies the financial assets meeting the following conditions simultaneously
as financial assets measured at fair value through other comprehensive income: ① the
business model for managing this financial asset aims at both collecting contractual cash
flows and selling the financial asset. ② The contractual terms of the financial assets
stipulate that the cash flows generated on specified dates solely represent payments of
principal and interest based on the outstanding principal amount. These financial assets
are initially measured at fair value, and relevant transaction costs are included into the
initially recognized amount. Except for those designated as hedge items, any other gains
or losses arising from such financial assets, except for credit impairment losses or gains,
exchange gains/losses, and interest on the financial asset calculated using the effective
interest rate method, are included in other comprehensive income; when financial assets
are derecognized, the accumulated gains or losses previously included in other
comprehensive income shall be transferred from other comprehensive income and
included in the current gains/losses.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
The Group recognizes interest income according to the effective interest rate method.
Interest income is calculated and determined according to the book balance of the
financial asset multiplied by the actual interest rate, except for the following circumstances:
① For the financial asset with credit impairment that has been purchased or originated,
from the initial recognition, the interest income is calculated and determined according to
the amortized cost of the financial asset and the actual interest rate adjusted by credit. ②
For financial assets purchased or originated that have not suffered credit impairment but
have suffered credit impairment in subsequent periods, the interest income shall be
calculated and determined according to the amortized cost and actual interest rate of the
financial assets in subsequent periods.
The Group designates non-trading equity instrument investments as financial assets
measured at fair value through other comprehensive income. Such designation, once
made, may not be revoked. The non-trading equity instrument investments designated by
the Group to be measured at fair value through other comprehensive income are initially
measured at fair value, and the relevant transaction costs are included in the initial
recognition amount; except for dividends obtained (except for the recovery of investment
costs) which are included in the current gains/losses, other relevant gains and losses
(including exchange gains/losses) are included in other comprehensive income and shall
not be subsequently transferred to the current gains/losses. When they are derecognized,
the cumulative gains or losses previously recognized in other comprehensive income are
transferred from other comprehensive income to retained earnings. Equity instrument
investments measured at fair value through other comprehensive income include: Equity
investments to be held in the long term as planned by the Group for strategic purpose, with
no control, joint control or significant influence, and with no active market quotation.
Financial assets other than those classified as financial assets measured at amortized cost
and financial assets measured at fair value through other comprehensive income. The
Group classifies them as financial assets measured at fair value through current
gains/losses. These financial assets are initially measured at fair value, and the relevant
transaction costs are directly included in the current gains/losses. Gains or losses arising
from these financial assets are recorded into the current gains/losses.
The contingent consideration recognized by the Group in a business combination not
under the same control which constitutes a financial asset is classified as financial assets
measured at fair value through current gains/losses.
(3) Classification, Recognition and Measurement of Financial Liabilities
The Group’s financial liabilities are, on initial recognition, classified into financial liabilities
measured at fair value through current gains/losses and other financial liabilities.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Financial liabilities measured at fair value through current gains/losses include held-for-
trading financial liabilities and financial liabilities designated at initial recognition to be
measured at fair value through current gains/losses. Subsequent measurement is carried
out at fair value, and gains or losses arising from changes in fair value as well as dividends
and interest expenses related to the financial liability are included in current gains/losses.
Other financial liabilities are subsequently measured at amortized cost using the effective
interest rate method. The Group classifies financial liabilities except for the following items
as financial liabilities measured at amortized cost: ①Financial liabilities measured at fair
value through current gains/losses, including held-for-trading financial liabilities (including
derivative instruments belonging to financial liabilities) and financial liabilities designated to
be measured at fair value through current gains/losses. ②Financial liabilities arising from
the transfer of financial assets not meeting the derecognition conditions or continuous
involvement in the transferred financial assets. ③Financial guarantee contracts not
belonging to cases of above ① or ②, and loan commitments at an interest rate lower than
the market rate not belonging to the case in ①.
The Group treats the financial liability arising from contingent consideration recognized as
the purchaser in a business combination not under the same control as measured at fair
value and changes thereof shall be recorded into current gains/losses.
(4) Impairment of financial instruments
Based on expected credit loss, the Group recognizes impairment and provisions for losses
on financial assets measured at amortized cost, debt investments measured at fair value
with changes in fair value recognized in other comprehensive income, contract assets,
lease receivables, loan commitments, and financial guarantee contracts.
Expected credit loss refers to the weighted average of the credit losses of financial
instruments weighted by the risk of default. Credit loss refers to the difference between all
contractual cash flows receivable under the contract and all expected cash flows to be
collected, discounted by the Group using the original effective interest rate, i.e., the
present value of all cash shortfalls.
Expected credit loss over the entire lifespan refers to the expected credit loss caused by
all possible default events that may occur during the expected lifespan of a financial
instrument. Expected credit loss in the next 12 months refers to the expected credit loss
caused by a financial instrument default event that may occur within 12 months after the
balance sheet date (if the expected lifespan of the financial instrument is less than 12
months, the actual expected lifespan applies), which is a part of the expected credit loss
over the entire lifespan.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
For accounts receivable, notes receivable, receivables financing, contract assets and other
receivables arising from daily operating activities such as sales of goods and rendering of
labor services, if they do not contain significant financing components, the Group adopts a
simplified measurement method to measure the loss provision at the amount equivalent to
the expected credit loss over the entire lifespan.
For lease receivables, receivables containing significant financing components and
contract assets, the Group adopts the simplified measurement method to measure the loss
provision at the amount equivalent to the expected credit loss over the entire lifespan.
For financial assets (such as debt investments, other debt investments and other
receivables), loan commitments and financial guarantee contracts other than those
measured with the above-mentioned simplified measurement method, the Group adopts
the general method (three-stage method) to accrue the expected credit loss. On each
balance sheet date, the Group assesses whether there is a significant increase in credit
risk since initial recognition. If the credit risk has not increased significantly since initial
recognition, it is in the first stage. In this case, the Group accrues the loss provision at the
amount equivalent to the expected credit loss in the next 12 months, and calculates the
interest income according to the book balance and the effective interest rate; if the credit
risk has increased significantly since initial recognition but credit impairment has not
occurred, it is in the second stage. In this case, the Group accrues the loss provision at an
amount equivalent to the expected credit loss over the entire lifespan, and calculates the
interest income according to the book balance and the effective interest rate; if a credit
impairment occurs after initial recognition, it is in the third stage. In this case, the Group
accrues the loss provision at an amount equivalent to the expected credit loss over the
entire lifespan, and calculates the interest income at amortized cost and effective interest
rate.
For financial instruments with low credit risk on the balance sheet date, the Group
assumes that there is no significant increase in their credit risk since initial recognition.
Regarding the Group's criteria for determining significant increases in credit risk and the
definition of assets with credit impairment, please refer to Note XI.1(2) for disclosure.
When the Group uses the expected credit loss model to assess the impairment of financial
instruments and contract assets, the expected changes in the debtors' credit risk are
inferred based on historical repayment data and in combination with economic policies,
macroeconomic indicators, industry risks and other factors. Different estimates may affect
the provision for impairment, therefore, the provision for impairment already made may not
be equal to the actual amount of impairment loss in the future.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
portfolio with credit risk characteristics
The Group assesses the expected credit loss of financial instruments on an individual and
portfolio basis. When assessing on a portfolio basis, the Group divides financial
instruments into different groups based on common credit risk characteristics. The
common credit risk characteristics adopted by the Group include: type of financial
instrument, credit risk rating, and aging of receivables.
individual basis
If the credit risk characteristics of a certain customer are significantly different from those
of other customers in the portfolio, or if the credit risk characteristics of that customer have
changed significantly, such as amounts due from related parties; receivables that are in
dispute with the counterparty or involve litigation or arbitration; receivables for which there
are clear indications that the debtor is highly unlikely to be able to fulfill its repayment
obligations, etc.
When the Group no longer reasonably expects to recover all or part of the cash flows from
financial asset contracts, the Group directly reduces the carrying amount of the financial
asset. If the written-down financial assets are recovered later, they are included in the
current gains/losses as the reversal of the impairment loss.
(5) Recognition and Measurement of Financial Asset Transfers
The Group derecognizes the financial assets that meet one of the following conditions: ①
the contractual right to receive the cash flow from the financial assets is terminated; ② The
financial assets have been transferred, and the Group has transferred almost all the risks
and rewards of ownership of the financial assets; ③ The financial assets have been
transferred, and the Group has neither transferred nor retained almost all risks and
rewards of ownership of the financial assets, nor has it retained control over the financial
assets.
If the overall transfer of financial assets fulfills the requirements for derecognition, the
difference between the book value of the transferred financial assets and the sum of the
consideration received due to the transfer and the corresponding derecognition part of the
accumulated amount of fair value changes originally directly included in other
comprehensive income (the contract terms involving the transferred financial assets
stipulate that the cash flow generated on a specific date is only the payment of the
principal and interest based on the unpaid principal amount) shall be included in the
current gains/losses.
If the partial transfer of financial assets satisfies the conditions for derecognition, the entire
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
book value of the transferred financial assets will be apportioned between the
derecognition portion and the non-derecognition portion according to their relative fair
values, and the consideration received for the transfer and the amount corresponding to
the derecognition of the cumulative amount of changes in fair value originally included in
other comprehensive income that should be apportioned to the derecognition part (the
contractual terms of the transferred financial asset stipulate that cash flows generated on
specific dates are solely payments of principal and interest based on the outstanding
principal amount) and the difference between the total book value of the aforesaid financial
assets allocated is included in the current gains/losses.
(6) The Distinction Between Financial Liabilities and Equity Instruments and Related
Treatment Methods
The Group distinguishes the financial liabilities and equity instruments according to the
following principles: (1) If the Group cannot unconditionally avoid performing a contractual
obligation by delivering cash or other financial assets, the contractual obligation meets the
definition of financial liabilities. Although some financial instruments do not explicitly
include the terms and conditions of the obligation to deliver cash or other financial assets,
they may indirectly form contractual obligations through other terms and conditions. (2) If a
financial instrument must be settled with or can be settled with the Group's own equity
instrument, it is necessary to consider whether the Group's own equity instrument used to
settle the instrument is used as a substitute for cash or other financial assets, or to enable
the holder of the instrument to enjoy the residual equity in the assets of the issuer after
deducting all liabilities. If the former, the instrument is a financial liability of the issuer; if the
latter, the instrument is an equity instrument of the issuer. In some cases, a financial
instrument contract requires the Group to use or be able to use its own equity instrument
to settle the financial instrument, in which the amount of contractual rights or contractual
obligations is equal to the number of its own equity instruments available or to be delivered
multiplied by its fair value at the time of settlement, regardless of whether the amount of
contractual rights or obligations is fixed, or entirely or partially based on changes in
variables other than the market price of the Group's own equity instruments (such as
interest rates, prices of certain commodities or prices of certain financial instruments), the
contract shall be classified as a financial liability.
In classifying financial instruments (or their components) in the consolidated statement, the
Group has taken into account all terms and conditions reached between the Group
members and the holders of financial instruments. If the Group as a whole undertakes the
obligation to deliver cash, other financial assets or settle accounts in other ways that cause
the instrument to become a financial liability due to the instrument, the instrument shall be
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
classified as a financial liability.
If financial instruments or their components are financial liabilities, the Group will include
interest, dividends, gains or losses, and gains or losses arising from redemption or
refinancing, etc. in the current gains/losses.
If financial instruments or their components are equity instruments, when they are issued
(including refinancing), repurchased, sold or cancelled, the Group will treat them as
changes in equity and will not recognize changes in the fair value of equity instruments.
(7) Offset of Financial Assets and Financial Liabilities
The Group’s financial assets and liabilities shall be separately presented in the balance
sheet and not set off each other. However, when the following conditions are met
simultaneously, the net amount after mutual offset is presented in the balance sheet: (1)
the Group has the legal right to offset the recognized amount, and such legal right is
currently enforceable; (2) the Group plans to settle them on a net basis, or realize the
financial assets and settle the financial liabilities at the same time.
For notes receivable, the Group shall measure the provision for loss based on the
expected credit loss amount over the entire period of existence. According to the credit risk
characteristics thereof, except those with separate evaluation of credit risk, notes
receivable can be divided into different combinations:
Item Basis for Combination Determination
Bank acceptance bills The accepter shall be a bank with high credit level and low risks
Commercial acceptance bills Classified by credit risk of accepters (the same as accounts receivable)
For accounts receivable and contract assets excluding significant financing composition,
the Group shall measure the provision for loss according to the expected credit loss
amount over the entire period of existence.
For accounts receivable, contract assets and lease payment receivable including
significant financing composition, the Group shall always measure the provision for loss
according to the expected credit loss amount over the period of existence.
Except the accounts receivable and contract assets whose credit risks shall be separately
evaluated, the Group shall divide them into different combinations based on the specific
credit risks:
Item Basis for Combination Determination
Aging Combination This portfolio is accounts receivable with aging as the credit risk feature
Related party portfolio The accounts receivable from the other entities within the consolidation scope
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
The Group’s receivables financing is based on expected credit losses, and provision is
made for impairment reserves in accordance with the expected credit loss measurement
method for notes receivable.
The Group measures the provision for losses of other receivables as below: ① for financial
assets with no significant increase in credit risk since initial recognition, the Group
measures the provision for loss according to the amount of expected credit loss in the next
recognition, the Group measures the provision for loss at an amount equivalent to the
expected credit loss of the financial instrument during the entire lifespan; ③ for purchased
or internally generated financial assets which have undergone credit impairment, the
Group measures the provision for loss at an amount equivalent to the expected credit loss
over the entire lifespan. Except other receivables whose credit risks shall be separately
evaluated, the Group shall divide them into different combinations based on the specific
credit risk features:
Item Basis for Combination Determination
Aging Combination This portfolio consists of other receivables with aging as the credit risk feature.
This portfolio's credit risk characteristics are other receivables with extremely low risk, such as
Low-risk portfolio
petty cash, security deposits, and deposits.
Related party portfolio This portfolio consists of other receivables from entities within the Group's consolidation scope.
By determining whether the credit risk of long-term receivables increases remarkably after
the initial recognition, the Group shall measure the impairment loss based on the specific
expected credit loss in the following 12 months or during the entire period of existence.
Except for long-term receivables whose credit risks shall be separately evaluated, the
Group shall divide them into different combinations based on the specific credit risk
features:
Item Basis for Combination Determination
Financing Lease
Uses long-term receivables related to the financing lease as the credit risk characteristics.
Combination
The Group's inventories mainly include raw materials, products in process, semi-finished
products, products on hand, and entrusted processing materials.
The perpetual inventory system is adopted, and inventories are valued at actual cost upon
acquisition; the actual cost of inventories that have undergone requisition or dispatch is
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
determined using the weighted average method. Low-value consumables and packaging
are amortized through the one-off charge-off method.
For merchandise inventories directly for sale, such as finished goods, goods in process,
and materials for sale, their net realizable values are determined at the estimated selling
prices of the inventories minus the estimated selling expenses and relevant taxes and
surcharges; the net realizable value of material inventory held for production purposes is
determined by subtracting the estimated costs to be incurred until completion, estimated
sales expenses, and related taxes from the estimated selling price of the finished products
produced. For inventories with large quantity and low unit price, the provision for inventory
depreciation is made according to the inventory category; for inventories related to the
product series produced and sold in the same area, with the same or similar end use or
purpose, and difficult to be measured separately from other items, the provision for
inventory depreciation is made on a consolidated basis.
The net realizable value refers, in the ordinary course of business, to the amount after
deducting the estimated cost of completion, estimated sale expenses, and relevant taxes
from the estimated sale price of inventories. The net realizable value of inventories shall
be fixed on the basis of valid evidence as well as under consideration of the purpose of
inventories and the effect of events after the balance sheet date.
After recognizing the provision for inventory depreciation, if the factors which caused a
write-down of inventories have disappeared, causing the net realizable value of inventories
to be higher than their book value, the amount of the write-down shall be reversed within
the original amount of provision for inventory depreciation. The reversed amount shall be
included in the current gains/losses.
(1) Recognition methods and standards for contract assets
Contract assets refer to the right of the Group to receive consideration after transferring
goods to customers, and this right depends on factors other than the passage of time. If
the Group sells two clearly distinguishable products to customers, it has the right to
receive payment because one of the products has been delivered, but the payment is also
dependent on the delivery of the other product, the Group recognizes the right to receive
payment as a contract asset.
(2) Determination Method and Accounting Treatment Method of Expected Credit
Loss of Contract Assets
The method for determining the expected credit losses of contract assets involves
measuring the impairment losses of contract assets by referencing the method used for
the impairment loss measurement of receivables as previously described.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
The Group calculates the expected credit loss of contract assets on the balance sheet
date. If the expected credit loss is greater than the book amount of the current provision for
impairment of contract assets, the Group recognizes the difference as an impairment loss
by debiting “impairment loss on assets” and crediting “provision for impairment of contract
assets”. On the contrary, the Group recognizes the difference as an impairment gain and
makes the opposite accounting records.
If the Group actually incurs a credit loss and determines that the relevant contract assets
cannot be recovered, and the write-off is approved, the "provision for impairment of
contract assets" is debited and the "contract assets" is credited according to the approved
write-off amount. If the write-off amount is greater than the provision for losses that has
been made, the difference is debited to "losses from asset impairment".
(1) Method for determining the amount of assets relating to contract costs
The Group’s assets related to contract costs include contract performance costs and
contract acquisition costs.
Contract performance cost refers to the cost incurred by the Group to perform a contract. If
the contract performance cost does not fall within the scope of other accounting standards
for business enterprises and meets the following conditions at the same time, it is
recognized as an asset under contract performance cost: this cost is directly related to a
current or expected contract, including direct labor, direct materials, manufacturing
expenses, costs clearly borne by the customer, as well as other costs incurred only due to
this contract; this cost increases the Group's future resources to meet its performance
obligations; this cost is expected to be recovered.
Contract acquisition cost refers to the incremental cost incurred by the Group to obtain the
contract that is expected to be recovered. It is recognized as an asset under contract
acquisition cost; if the amortization period of the asset does not exceed one year, the
asset is included in the current gains/losses when the amortization occurs. Incremental
cost refers to the cost (such as sales commission, etc.) that the Group will not incur
without obtaining the contract. The Group's expenses incurred in obtaining the contract,
other than the expected recoverable incremental cost (such as travel expenses incurred
regardless of whether the contract is obtained, etc.), are included in the current
gains/losses when they are incurred, except when clearly borne by the customer.
(2) Amortization of assets relating to contract costs
The Group’s assets related to contract costs are amortized on the same basis as the
commodity revenue recognition related to the asset and included in the current
gains/losses.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(3) Impairment of assets relating to contract costs
When determining the impairment loss of assets related to contract costs, the Group first
determines the impairment loss of other assets related to the contract recognized in
accordance with other relevant accounting standards for business enterprises; if its book
value is higher than the difference between the remaining consideration expected to be
obtained by the Group from the transfer of the goods related to the asset and the
estimated cost to be incurred for the transfer of the relevant goods, the excess shall be
provided for impairment and recognized as asset impairment loss.
If the impairment factors of the previous period have changed, and the aforementioned
difference is higher than the book value of the asset, the original provision for asset
impairment shall be reversed and included in the current gains/losses, but the book value
of the asset after the reversal shall not exceed, assuming no provision for impairment is
made, the book value of the asset on the date of reversal.
The Group's long-term equity investments are mainly investments in subsidiaries and
associates.
The Group’s judgment on joint control is based on the fact that all participants or a
combination of participants collectively control the arrangement and that the policies of the
activities related to the arrangement shall be unanimously agreed by those participants
who collectively control the arrangement.
The Group is generally considered to have a significant influence on the investee when it
owns, directly or indirectly through a subsidiary, above 20% but below 50% of the voting
rights of the investee. If the Group holds less than 20% of the voting rights of the investee,
it also needs to judge whether the Group has a significant influence on the investee by
taking into account the facts and circumstances such as having representatives on the
Board of Directors or similar authority of the investee, or participating in the process of
formulating financial and operating policies of the investee, or having major transactions
with the investee, or sending management personnel to the investee, or providing key
technical information to the investee.
If control over the investee is formed, it is a subsidiary of the Group. For long-term equity
investment acquired through business combination under the same control, the initial
investment cost of the long-term equity investments is recorded at the merger date based
on the acquisition of the merged party's share of the book value of the net assets of the
ultimate controller in the consolidated financial statements. If the book value of the net
assets of the merged party on the merger date is negative, the cost of long-term equity
investments is determined as zero.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
If the business combination that is ultimately formed through multiple transactions to
acquire the equity of the investee under the same control belongs to a package deal, the
Group shall conduct accounting treatment to treat each transaction as a single transaction
to acquire control. If the transaction is not a package deal, the initial investment cost of the
long-term equity investment is based on the share of the book value of the net assets of
the merged party in the consolidated financial statements of the ultimate controller at the
merger date. The difference between the initial investment cost and the sum of the book
value of the long-term equity investment before the merger plus the book value of the new
consideration paid for further acquisition of shares at the merger date shall offset against
capital reserve; and where capital reserve is insufficient to be offset, the retained earnings
shall be adjusted.
For long-term equity investment acquired through business combination not under the
same control, the initial investment cost shall be the consolidation cost.
If the business combination that is ultimately formed through multiple transactions to
acquire the equity of the investee not under the same control belongs to a package deal,
the Group will conduct accounting treatment to treat each transaction as a single
transaction to acquire control. If the transaction is not a package deal, the sum of the book
value of the equity investment originally held plus the cost of the new investment shall be
the initial investment cost calculated in accordance with the cost method. If the equity held
prior to the purchase date is accounted for by the equity method, the relevant other
comprehensive income accounted for by the original equity method shall not be adjusted.
The same basis of accounting as that used for the direct disposal of the related assets or
liabilities by the investee is used for the disposal of the investment. If the equity held
before the purchase date is designated as the financial assets measured at fair value
through other comprehensive income, the cumulative gains or losses of the equity
originally recognized in other comprehensive income shall be transferred from other
comprehensive income and recognized in retained earnings; if it is a financial asset
measured at fair value through current gains/losses, the gains or losses of the equity
originally included in the gains/losses from changes in fair value need not be transferred to
investment income. If the equity held prior to the purchase date is an investment for other
equity instruments, the changes in fair value of the equity investment accumulated in other
comprehensive income before the purchase date shall be transferred to the retained
earnings.
Except for the above long-term equity investments obtained through business
combinations, long-term equity investments obtained through cash payments are
recognized as investment costs based on the actual purchase price paid; for long-term
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
equity investments acquired by issuing equity securities, the fair value of the issued equity
securities is taken as the investment cost; for long-term equity investments invested by
investors, the value agreed in the investment contract or agreement shall be taken as the
investment cost.
The Group calculates its investments in subsidiaries through the cost method and its
investments in joint ventures and associates through the equity method.
For long-term equity investments calculated by the cost method for subsequent
measurement, the book value of the cost of long-term equity investments shall be
increased by the fair value of the cost amount paid for the additional investment and
relevant transaction costs incurred when the additional investment is made. Cash
dividends or profits declared by the investee are recognized as investment income for the
current period in accordance with the due amount.
For the long-term equity investment whose subsequent measurement adopts the equity
method, the book value of the long-term equity investment will increase or decrease
accordingly with the change of the owner's equity of the investee. In recognizing the share
of net gains/losses of an investee, the fair value of the identifiable assets of the investee at
the time of investment acquisition is used as the basis for recognizing the net profit of the
investee in accordance with the Group's accounting policies and accounting periods, with
the offsetting of the portion of gains/losses on internal transactions with associates and
joint ventures that are attributable to the investor based on the proportion of the investor's
ownership interest, and the net profit of the investee is recognized after adjustments are
made to the net profit of the investee.
For the disposal of a long-term equity investment, the difference between its book value
and the actual proceeds is included in the current investment income. For long-term equity
investments accounted for using the equity method, the relevant other comprehensive
income accounted for using the original equity method shall be accounted for on the same
basis as the investee's direct disposal of relevant assets or liabilities when the equity
method is terminated. The owner's equity recognized due to other changes in owner's
equity of the investee other than net gains/losses, other comprehensive income and profit
distribution shall be fully transferred into the current investment income when the equity
method is terminated.
If common control or significant influence over an investee is lost due to the disposal of a
portion of the equity investment, etc., the remaining equity interest after disposal is
reclassified to be accounted for in accordance with the relevant provisions of the
guidelines for the recognition and measurement of financial instruments, and the
difference between the fair value of the remaining equity interest at the date of the loss of
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
common control or significant influence and its book value is recognized in current
gains/losses. Any other comprehensive income previously recognized under the equity
method for the original equity investment is accounted for on the same basis as if the
investee had directly disposed of related assets or liabilities once the equity method
ceases to apply, and is carried forward proportionally. The owner's equity recognized due
to other changes in owner's equity of the investee other than net gains/losses, other
comprehensive income and profit distribution shall be proportionally transferred into the
current investment income.
In case that the control over the investee is lost due to the disposal of part of the long-term
equity investments, if the remaining equity after disposal can exercise joint control or
significant influence on the investee, the accounting method is changed to the equity
method. The difference between the book value of the disposed equity and the disposal
consideration shall be included in the investment income, and the remaining equity is
adjusted as if it were accounted for using the equity method from the time of acquisition; if
the remaining equity after disposal is insufficient for exercising joint control or significant
influence on the investee, accounting treatment shall be made in accordance with the
relevant provisions of the recognition and measurement standards for financial instruments.
The difference between the book value of the disposed equity and the disposal
consideration shall be included in the investment income, and the difference between the
fair value and the book value of the remaining equity on the date of loss of control is
included in the current gains/losses.
If the Group's transactions of step-by-step disposal of equity to loss of control do not
belong to a package deal, accounting treatment shall be carried out for each transaction
separately. If it is a "package deal", each transaction will be treated as a transaction of
disposal of subsidiaries and loss of control. However, before the loss of control, the
difference between the disposal price of each transaction and the book value of the long-
term equity investment corresponding to the disposed equity will be recognized as other
comprehensive income, and when the control is lost, it will be transferred to the current
gains/losses of loss of control.
The term "investment property" refers to the real estate held for generating rent and/or
capital appreciation. Investment properties include leased land use rights, land use rights
held for transfer upon appreciation, and leased buildings, etc. In addition, if the Board of
Directors (or similar organizations) makes a written resolution to use the vacant buildings
held by the Group for operating lease and the holding intention will not change in a short
time, they will also be listed as investment properties.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
The initial measurement of the investment property shall be made at its cost. For
subsequent expenses related to the investment property, if the economic benefits related
to the asset are likely to flow in and the cost can be measured reliably, they are included in
the cost of the investment property. Other subsequent expenses are included in the
current gains/losses when incurred.
The Group adopts the cost model for the subsequent measurement of investment
properties, and depreciates or amortizes them in accordance with a policy consistent with
that for buildings or land use rights.
For details of impairment test method and withdrawal method of impairment provision of
investment properties, please refer to Note IV. 27. "Long-term assets impairment".
The Group's investment properties adopt the average life method for depreciation or
amortization. The expected service life, net residual value rate and annual depreciation
(amortization) rate of all kinds of investment properties shall refer to the depreciation policy
for buildings under fixed assets and the amortization policy for land use rights under
intangible assets.
When owner-occupied real estate or inventories are changed into investment property or
investment property is changed into owner-occupied real estate, the book value prior to
the change shall be the entry value after the change.
When an investment property is changed to an owner-occupied real estate, it would be
transferred to fixed assets or intangible assets at the date of such change. When an
owner-occupied real estate is changed to be held to earn rental or for capital appreciation,
the fixed asset or intangible asset is transferred to investment property at the date of such
change. When a property is converted to an investment property measured using the cost
model, the book value before conversion is taken as the entry value after conversion;
when a property is converted into an investment property measured at fair value, the fair
value on the conversion date is recognized as the entry value after conversion.
An investment property is derecognized on disposal or when the investment property is
permanently withdrawn from use and no future economic benefits are expected from its
disposal. The amount of proceeds on sale, transfer, retirement or damage of an
investment property less its carrying amount and related taxes and expenses is
recognized in the current gains/losses in the period in which it is incurred.
The Group’s fixed assets are tangible assets held for the production of goods, provision of
services, rental or operation management and have a useful life of more than one year.
Fixed assets should be recognized when it is probable that the economic benefits
associated with them will be incorporated into the Group and their cost can be measured
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
reliably. The Group’s fixed assets include buildings and constructions, machinery and
equipment, electronic equipment, transportation equipment, and other equipment.
The Group depreciates all fixed assets by the straight-line method, except for fully
depreciated fixed assets that continue to be used and land that is separately valued. The
straight-line depreciation method (SLD) is adopted. The classified depreciation life,
estimated net residual value rate and depreciation rate of the Group's fixed assets are as
follows:
Annual
Depreciation period Expected residual
No. Category Depreciation method depreciation rate
(year) value rate (%)
(%)
Housing and Straight-line
building depreciation
Machinery Straight-line
Equipment depreciation
Electronic Straight-line
Equipment depreciation
Transportation Straight-line
equipment depreciation
Straight-line
depreciation
The estimated useful life, estimated net salvage value and depreciation method of fixed
assets are reviewed at the end of each year. Accounting estimate changes are applied
when changes are required.
The cost of construction in progress is determined based on actual project expenditures,
including all necessary project expenditures incurred during construction, borrowing costs
to be capitalized before the project reaches its predetermined usable state, and other
related expenses, etc.
On the date when the construction in progress reaches its intended usable state, fixed
assets are carried forward at the estimated value based on the project budget, cost or
actual cost of the project, etc. Depreciation starts from the following month, and the
difference in the original value of fixed assets is adjusted after the completion of the final
accounting procedures.
Construction in progress is transferred to fixed assets upon reaching the predetermined
usable state, with the criteria as follows:
Item Criteria for carrying forward fixed assets
The main construction project and ancillary projects are substantially completed, meeting
the predetermined design requirements. Upon joint acceptance by the Company’s
Housing and building Engineering Department and units responsible for surveying, design, construction,
supervision, etc., and government departments such as the Fire Services Department and
the Housing Authority, and reaching the predetermined usable state following process
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Criteria for carrying forward fixed assets
approval, it is transferred to fixed assets.
The equipment management department and the equipment manufacturer are jointly
responsible for the installation and commissioning of the equipment, including hardware
Machinery Equipment
debugging, process conditions debugging, etc. Upon completion of debugging and reaching
the predetermined usable state following process approval, it is transferred to fixed assets.
The Group capitalizes borrowing costs directly attributable to the acquisition, construction,
or production of qualifying assets as part of the cost of those assets, and other borrowing
costs are included in the current gains/losses. The assets that meet the capitalization
conditions determined by the Group include the borrowing costs of fixed assets,
investment real estate and inventories that need more than one year of acquisition and
construction or production activities to reach the expected serviceable or marketable
status. Capitalization starts when asset expenditures have been incurred, borrowing costs
have been incurred, and necessary purchasing, construction, or production activities have
begun to bring the assets to their intended usable or marketable status; when the acquired
and constructed, or produced assets that meet the capitalization conditions have reached
the working condition for their intended use or sale, the capitalization is ceased, and the
borrowing costs incurred thereafter are included in the current gains/losses. If there is an
abnormal interruption in the acquisition, construction or production of assets that meet the
capitalization conditions and the interruption lasts for more than 3 consecutive months, the
capitalization of borrowing costs will be suspended until the acquisition, construction or
production of assets starts again.
During each accounting period within the capitalization process, the Group recognizes the
capitalization amount of borrowing costs using the following method: for specialized
borrowings, the capitalization amount is based on the actual interest expenses incurred in
the current period, after deducting the interest income earned from unused borrowing
funds deposited in the bank or investment income earned from temporary investments;
where general borrowings are used, they shall be determined by multiplying the weighted
average of asset disbursements of the part of accumulated asset disbursements
exceeding specialized borrowings by the capitalization rate of used general borrowings,
and the capitalization rate is calculated and determined according to the weighted average
interest rate of the general borrowings.
The right-of-use assets refer to the right of the Group as the lessee to use the leased
assets during the lease term.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(1) Initial Measurement
On the commencement date of the lease term, the Group uses the cost for initial
measurement of right-of-use assets. The cost includes the following four items: ① initial
measurement amount of the lease liabilities; ② lease payment amount paid on or before
the start date of the lease term. If there is any lease incentive, the lease incentive amounts
that have been enjoyed are deducted; ③ the initial direct costs incurred, i.e. the
incremental costs incurred in obtaining the lease agreement; ④ the cost expected to be
incurred for dismantling and removing the leased assets, restoring the site where the
leased assets are located, or restoring the leased assets to the state agreed upon in the
lease terms, except for those incurred for the production of inventory.
(2) Subsequent Measurement
After the commencement date of the lease term, the Group adopts the cost model to carry
out subsequent measurement of the right-of-use assets, that is, the right-of-use assets are
measured at cost less accumulated depreciation and accumulated impairment losses. If
the Group re-measures the lease liabilities according to the relevant provisions of the
lease standards, the book value of the right-of-use assets shall be adjusted accordingly.
(3) Depreciation of right-of-use assets
From the commencement date of the lease term, the Group accrues depreciation on the
right-of-use assets. Right-of-use assets are usually depreciated from the month when the
lease term begins. The accrued depreciation amount is included in the cost of related
assets or current gains/losses according to the use of the right-of-use assets.
When determining the depreciation method of the right-of-use assets, the Group makes a
decision based on the expected consumption mode of the economic benefits related to the
right-of-use assets, and accrues depreciation for the right-of-use assets using the straight-
line method.
When determining the depreciation life of right-of-use assets, the Group follows the
following principles: if it can be reasonably determined that the ownership of the leased
assets will be obtained at the expiration of the lease term, the depreciation is accrued over
the remaining service life of the leased assets; if it cannot be reasonably determined that
the ownership of the leased asset can be obtained at the expiration of the lease term, the
depreciation is accrued over the shorter of the lease term or the remaining service life of
the leased asset.
(4) Impairment of right-of-use assets
If the right-of-use assets are impaired, the Group carries out subsequent depreciation
according to the book value of the right-of-use assets after deducting the impairment loss.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Intangible assets of the Group include land use rights, patented technologies, non-
patented technologies, etc. They are measured at the actual cost on acquisition.
Specifically, for purchased intangible assets, the actual price paid and other relevant
expenses are taken as the actual cost; for intangible assets invested by investors, the
value agreed in the investment contract or agreement is taken as the actual cost. However,
if the value agreed in the contract or agreement is not fair, the actual cost is determined
according to the fair value; for intangible assets such as patents acquired from a merger
not under the same control, if they were owned by the acquired party but not recognized in
its financial statements, they shall be recognized as intangible assets at fair value upon
initial recognition of the acquired party's assets.
（ 1） Service life and its determination basis, estimation, amortization method, or
review procedure
Intangible assets of the Group include land use rights, patented technologies, non-
patented technologies, etc. They are measured at the actual cost on acquisition.
Specifically, for purchased intangible assets, the actual price paid and other relevant
expenses are taken as the actual cost; for intangible assets invested by investors, the
value agreed in the investment contract or agreement is taken as the actual cost. However,
if the value agreed in the contract or agreement is not fair, the actual cost is determined
according to the fair value; for intangible assets such as patents acquired from a merger
not under the same control, if they were owned by the acquired party but not recognized in
its financial statements, they shall be recognized as intangible assets at fair value upon
initial recognition of the acquired party's assets.
（2） Scope of R&D expenditures and related accounting treatments
The scope of the Group's R&D expenditures includes salaries of R&D personnel,
direct input costs, depreciation and amortization, design fees, equipment testing fees, fees
for R&D outsourced to external parties, and other expenses.
The Group classifies its internal research and development project expenditures into
expenditure on the research phase and expenditure on the development phase, based on
the nature of the expenditures and the degree of uncertainty in whether the R&D
activities will result in an intangible asset. Expenditure on the research phase is
recognized in current gains/losses when incurred. Expenditure on the development phase
is capitalized when all of the following conditions are met:
The Group has assessed the technical feasibility of completing the intangible asset so that
it will be available for use or sale;
The Group intends to complete the intangible asset and use or sell it;
It is probable that the intangible asset will generate future economic benefits;
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
The Group has the adequate technical, financial, and other resources to complete the
development and to use or sell the intangible asset;
The expenditure attributable to the development phase of the intangible asset can be
measured reliably. Development phase expenditures not meeting these capitalization
criteria are recognized in current gains/losses for the period when incurred.
For non-current non-financial assets of fixed assets, projects under construction, intangible
assets with limited service life, investment property measured using the cost model, and
long-term equity investments in subsidiaries, joint ventures, and associates, the Group
shall assess at the balance sheet date whether there is any indication of impairment. If
such indication exists, the recoverable amount shall be estimated and an impairment test
conducted. Goodwill, intangible assets with indefinite service life, and intangible assets not
yet available for use shall be tested for impairment at the end of each year regardless of
whether there is any indication of impairment.
（1） Impairment of non-current assets other than financial assets (except goodwill)
If the impairment test result shows that the recoverable amount of an asset is less than its
book value, an impairment provision for the difference shall be made and recorded in
impairment losses. The recoverable amount is the higher of the net amount of the asset's
fair value less disposal costs and the present value of the asset's estimated future cash
flows. The fair value of the asset is determined according to the sales agreement price in
an arm's length transaction; if there is no sales agreement but there is an active market for
the asset, the fair value is determined based on the buyer's offer for the asset; if there is
neither a sales agreement nor an active market for the asset, the fair value is estimated
based on the best available information. Disposal costs include legal fees, related taxes,
freight charges, and other direct costs incurred to bring the asset to a saleable condition.
The present value of the asset's estimated future cash flows is determined by discounting
the asset's estimated future cash flows during continued use and upon disposal using an
appropriate discount rate. Impairment provisions for assets are calculated and recognized
on the basis of individual assets. If it is difficult to estimate the recoverable amount of an
individual asset, the recoverable amount is determined for the asset group to which the
asset belongs. An asset group is the smallest combination of assets that generates cash
inflows independently.
（2） Impairment of goodwill
In the impairment test, the book value of goodwill presented separately in the financial
statements is allocated to the asset group or groups of asset groups expected to benefit
from the synergies of the business combination. If the impairment test result shows that
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
the recoverable amount of the asset group or groups of asset groups containing the
allocated goodwill is less than its book value, the corresponding impairment loss is
recognized. The amount of impairment loss is first used to reduce the book value of
goodwill allocated to the asset group or groups of asset groups, and then the book value of
other assets is reduced proportionately based on their respective book values within the
asset group or groups of asset groups (excluding goodwill).
The methodology, parameters, and assumptions for the goodwill impairment test are
detailed in Note VI.19.
Once recognized, the above impairment losses on assets shall not be reversed in
subsequent accounting periods.
The Group's long-term deferred expenses include renovation costs, mold costs, and so on.
These expenses are amortized evenly over the benefit period. If a long-term deferred
expense item cannot generate benefits for future accounting periods, the unamortized
value of the item shall be fully transferred to current gains/losses.
Contract liabilities refer to the obligation of the Group to transfer goods to customers for
consideration received or receivable from customers. Before the transfer of goods, if the
customer has paid the consideration or if the Group has obtained the right to
unconditionally collect the contract consideration, the contract liabilities shall be
recognized based on the amount received or receivable at the earlier of the customer's
actual payment date or the payment due date.
Employee compensation of the Group includes short-term compensation, post-
employment benefits, termination benefits, and other long-term benefits.
Short-term compensation mainly includes wages, bonuses, allowances and subsidies,
employee welfare expenses, medical insurance, maternity insurance, employment injury
insurance, housing provident fund, labor union expenses, staff education expenses, and
non-monetary benefits. During the accounting period when employees provide services,
the actual short-term compensation is recognized as a liability and included in current
gains/losses or the cost of related assets depending on the beneficiary.
The post-employment benefits mainly include the basic endowment insurance, etc. They
are divided into defined contribution plans and defined benefit plans in accordance with the
risks and obligations undertaken by the Group. According to the defined contribution plan,
the deposit paid to a separate entity in exchange for the services provided by the
employees during the accounting period on the balance sheet date is recognized as
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
liabilities, and shall be included in the current gains/losses or the cost of related assets
according to the beneficiary. If the Group has a defined benefit plan, the specific
accounting method should be explained.
When terminating labour relations before expiration of contract, or layoffs with
compensations, and the Group cannot unilaterally withdraw the plan for terminating labour
relations or layoff proposal, the liabilities arising from dismissal welfare shall be recognized
and included in current gains/losses at the earlier of the date the related costs of dismissal
welfare in connection with a restructuring are recognized or the date when the dismissal
welfare cannot be withdrawn unilaterally. However, dismissal welfare not fully paid within
employees’ payrolls.
The internal employee retirement plan is treated by adopting the same principle as the
above dismissal welfare. The Group would record the salary and the social security
insurance fees paid and so on from the employee’s service termination date to normal
retirement date into current gains/losses (dismissal welfare) under the condition that they
meet the recognition conditions of estimated liabilities.
The other long-term welfare that the Group offers to the staffs, if meeting the defined
contribution plan, should be accounting disposed according to the defined contribution
plan, while the rest should be disposed according to the defined benefit plan.
(1) Initial Measurement
The Group initially measures the lease obligation at the present value of the lease
payments outstanding at the lease commencement date.
Lease payment amount refers to the amount paid by the Group to the lessor in relation to
the right to use the leased asset during the lease term, including: ① fixed payment amount
and substantially fixed payment amount, with lease incentives (if any) deducted from the
relevant amount; ② The amount of variable lease payments that depend on an index or
ratio, which is determined at the time of initial measurement based on the index or ratio at
the commencement date of the lease term; ③ the exercise price of the purchase option
when the Group reasonably determines that the purchase option will be exercised; ④ The
amount needs to be paid for exercising the lease termination option when the lease term
reflects that the Group will exercise the option to terminate the lease; ⑤ The amount
expected to be paid according to the residual value of the guarantee provided by the
Group.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
When calculating the present value of the lease payments, the Group uses the interest
rate implicit in lease as the rate of discount, which is the interest rate at which the sum of
the present value of the lessor's lease receipts and the present value of the unsecured
residual value equals the sum of the fair value of the leased asset and the lessor's initial
direct expenses. If the Group fails to determine the interest rate implicit in lease, the
incremental borrowing rate will be used as the rate of discount. The incremental borrowing
rate shall mean the interest rate payable by the Group to borrow funds under similar
mortgage conditions during similar periods to acquire assets close to the value of the right-
of-use assets under similar economic circumstances. The interest rate is related to the
following matters: ① the Group's own situation, that is, the company's solvency and credit
status; ② The term of the "borrowing", i.e., the lease term; ③ the amount of "borrowed"
funds, i.e. the amount of the lease liability; ④ "collateral conditions", i.e. the nature and
quality of the subject assets; ⑤ economic circumstances, including the jurisdiction in which
the lessee is located, pricing currency, time of contract signing, etc. The incremental
borrowing rate is based on the Group's latest asset-based lending interest rate for similar
assets and adjusted to take into account the above factors.
(2) Subsequent Measurement
After the lease commencement date, the Group measures the lease liability in accordance
with the following principles: ① when recognizing the interest on the lease liability, the
carrying amount of the lease liability is increased; ② when the lease payment is made, the
book amount of the lease liability is reduced; ③ when the lease payment changes due to
revaluation or lease change, the book value of the lease liability is re-measured.
The Group calculates the interest expenses of the lease obligations during each period of
the lease term at a fixed periodic interest rate, and includes them (except those that shall
be capitalized) in current gains/losses. Periodic rate refers to the rate of discount adopted
by the Group when initially measuring lease liabilities, or the revised rate of discount
adopted by the Group when lease liabilities need to be remeasured according to the
revised rate of discount due to changes in lease payments or lease changes.
(3) Re-measurement
After the lease commencement date, the Group re-measures the lease liability based on
the present value of the changed lease payment and adjusts the book value of the right-of-
use assets accordingly when the following circumstances occur. If the carrying amount of
the right-of-use asset has been reduced to zero, but the lease liability still needs to be
further reduced, the Group recognizes the remaining amount in current gains/losses. ①
there have been changes in substantially fixed payments (in which case the original
discount rate is adopted); ② there have been changes in the estimated payable amount of
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
the guarantee residual value (in which case, the original discount rate is adopted); ③ there
have been changes in the index or ratio used to determine the lease payments (in which
case the revised discount rate is adopted); ④ there have been changes in the valuation
results of the purchase option (in which case the revised discount rate is adopted); ⑤
there have been changes in the evaluation results or actual exercise of the option to renew
or terminate the lease (in which case, the revised discount rate is adopted).
When an obligation related to a contingency meets the following conditions simultaneously,
it is recognized as an estimated liability: (1) the obligation is a present obligation
undertaken by the Group; (2) the performance of the obligation is likely to result in an
outflow of economic benefits; (3) the amount of the obligation can be reliably measured.
The provisions are initially measured in accordance with the optimal estimate of the
necessary expenses for the fulfillment of the current obligation, with the risks related to
contingent matters, uncertainty, the time value of money, and other factors taken into
consideration. The Group reviews the current best estimate of provisions at the balance
sheet date and adjusts the carrying amount of the provision as necessary.
When all or some of the expenses necessary for the liquidation of provisions are expected
to be compensated by a third party, the compensation should be separately recognized as
an asset only when it is virtually certain that the reimbursement will be obtained. Besides,
the amount recognized for the reimbursement should not exceed the book value of the
estimated liabilities.
Preferred shares and perpetual debt classified as debt instruments shall be initially
measured at their fair value less transaction costs, and subsequently measured at
amortized cost using the effective interest rate method. Interest expenses or dividend
distributions thereon shall be accounted for in accordance with borrowing costs. Gains or
losses arising from their repurchase or redemption shall be recognized in current
gains/losses.
For preferred shares and perpetual bonds classified as equity instruments, the
consideration received upon issuance, net of transaction costs, is added to owners' equity.
Their interest expense or dividend distributions are treated as profit distribution, and any
repurchase or cancellation is treated as a change in equity.
(1) General principles
The Group has fulfilled the performance obligations in the contract, that is, when the
customer obtains control of the relevant goods or services, revenue is recognized.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Obtaining control over related goods or services means being able to lead the use of the
goods or the provision of such services and obtain almost all of the economic benefits from
it.
Performance obligation refers to the Group's commitment in a contract to transfer clearly
distinguishable goods to the customer. A performance obligation of the Group is deemed
as an obligation to be fulfilled within a certain period of time if one of the following
conditions is met; otherwise, the performance obligation is satisfied at a point in time:
① The customer obtains and consumes the economic benefits brought by the Group's
performance at the same time as the Group performs the contract;
② The customer is capable of controlling the goods under construction during the
performance of the Group;
③ The goods produced during the performance of the Group have irreplaceable uses, and
the Group has the right to receive payment for the performance accumulated to date
throughout the contract period.
For performance obligations performed within a certain period of time, the Group
recognizes revenue according to the performance progress during that period. When the
performance progress cannot be reasonably determined, if the cost incurred by the Group
is expected to be compensated, the revenue shall be recognized according to the amount
of the cost incurred until the performance progress can be reasonably determined.
For performance obligations performed at a certain point in time, the Group recognizes
revenue at the point in time when the customer obtains control of the relevant goods or
services. When determining whether a customer has obtained control over goods, the
Group considers the following indications:
① The Group has the current right to receive the payment for the goods, that is, the
customer has the current obligation to pay for the goods;
② The Group has transferred the legal ownership of the goods to the customer, that is, the
customer already has legal ownership of the goods;
③ The Group has physically transferred the goods to the customer, that is, the customer
has physically taken possession of the goods;
④ The Group has transferred the significant risks and rewards pertaining to the ownership
of the goods to the customer, that is, the customer has obtained the significant risks and
rewards;
⑤ The customer has accepted the goods or services, etc.;
⑥ Other signs indicating that the customer has gained control of the goods.
The Group's right to consideration in exchange for goods or services that the Group has
transferred to a customer is presented as a contract asset. An impairment loss is
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
recognized for contract assets based on expected credit losses. The Group's unconditional
right to receive consideration from a customer is presented as a receivable. The Group's
obligation to transfer goods or services to a customer for which the Group has received
consideration from the customer is presented as a contract liability.
(2) Principles of revenue measurement
date of the contract, the Group will allocate the transaction price to each single
performance obligation based on the relative proportion of the stand-alone selling price of
the goods or services promised under each single performance obligation. Revenue is
measured at the transaction price of each single performance obligation.
entitled to receive due to the transfer of goods or services to customers, excluding
payments collected on behalf of third parties and payments expected to be returned to
customers. The transaction price recognised by the Group does not exceed the amount for
which it is highly probable that cumulative revenue already recognised will not be
significantly reversed when the related uncertainties are resolved. Amounts expected to be
refunded to the customer are treated as a liability and not included in the transaction price.
protection included in certain contracts between the Group and its customers, the Group
determines the best estimate of variable consideration using the expected value method or
the most likely amount method. However, the transaction price including variable
consideration is constrained to an amount that, in relation to the cumulative revenue
already recognised, is highly probable not to result in a significant reversal when the
related uncertainties are resolved.
the transaction price and reduces current revenue at the later of when the related revenue
is recognised and when the consideration is paid (or promised to be paid) to the customer,
unless the consideration payable is in exchange for other distinct goods or services
obtained from the customer.
goods, the Group recognizes the revenue at the amount of consideration expected to be
received due to the transfer of goods to the customer, and recognizes the amount
expected to be refunded due to sales return as estimated liabilities; in addition, the
balance of the expected book value of the returned goods at the time of transfer less the
expected cost of recovering the goods (including the impairment of the value of the
returned goods) is recognized as an asset, i.e. the return cost receivable. The net amount
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
of the above asset cost is carried forward according to the book value of the transferred
goods at the time of assignment. On each balance sheet date, the Group re-estimates the
future sales returns and re-measures the aforementioned assets and liabilities.
the transaction price according to the payable amount that is assumed to be paid in cash
by the customer when the customer obtains the right of control over goods or services.
The difference between the transaction price and the promised consideration in the
contract is amortized over the contract period using the effective interest method, with the
discount rate being the one that discounts the nominal amount of the contract
consideration to the cash selling price of the goods. On the starting date of the contract,
the Group expects that the time between the customer's acquisition of control of the goods
or services and the customer's payment of the price will not exceed one year, regardless
of the significant financing components in the contract.
assurance for the products sold and the assets built. For guarantee-type quality assurance
to assure customers that the goods sold meet the established standards, the Group
conducts accounting treatment in accordance with "contingent events-estimated liabilities".
For service-type quality assurance where a separate service is provided in addition to the
assurance to the customer that the goods sold meet the established standards, the Group
treats it as a single performance obligation and apportions a portion of the transaction
price to the service-type quality assurance based on the relative proportions of the
separate selling prices of the goods and the service-type quality assurance provided and
recognizes revenue when the customer obtains control of the service. When assessing
whether the quality assurance provides a separate service in addition to ensuring that the
products sold meet the established standards, the Group considers whether the quality
assurance is a legal requirement, the quality assurance period, and the nature of the
Group's commitment to perform the tasks.
modification adds distinct construction services and the contract price increases by an
amount that reflects the standalone selling price of the additional construction services, the
Group accounts for the contract modification as a separate contract; ② If the contract
modification does not meet the criteria in ①, and the construction services transferred
before the modification date are distinct from those not yet transferred, the Group accounts
for the modification as a termination of the original contract. The remaining performance
obligations of the original contract and the modification are combined and treated as a new
contract. ③ If the contract modification does not meet the criteria in ①, and the
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
construction services transferred before the modification date are not distinct from those
not yet transferred, the Group accounts for the modification as part of the original contract.
The effect of the modification on revenue previously recognized is recognized as an
adjustment to revenue in the period in which the modification occurs.
(3) Specific methods
The revenue of the Group mainly consists of the income from main business and the
income from other businesses.
① Revenue Recognized at a Point in Time
The Group's sales of household appliances, electronic components, etc., belong to the
performance obligation performed at a certain point in time.
Recognition conditions for income from domestic sales of goods and overseas direct sales
of goods: The Group has delivered the product to the customer in accordance with the
contract and the customer has received the product, the payment has been recovered or
the receipt of payment has been obtained, and the relevant economic benefits are likely to
flow in. The main risks and rewards have been transferred, and the legal ownership of the
goods has been transferred.
Conditions for confirming the income of exported goods: The Group has declared the
products for export according to the contract, obtained the bill of lading, and delivered the
goods to the carrier entrusted by the purchaser. The payment has been recovered or the
receipt of payment has been obtained and relevant economic benefits are likely to flow in.
The main risks and rewards of commodity ownership have been transferred, and the legal
ownership of commodities has been transferred.
② Revenue Recognized Over Time
The Group's business contracts with customers for project construction, operating leases,
etc. are performance obligations performed within a certain period of time, and revenue is
recognized according to the progress of the performance.
The government grants of the Group are divided into asset-related government grants and
income-related government grants. Specifically, asset-related government grants refer to
the government grants obtained by the Group for the purpose of purchasing, constructing
or otherwise forming long-term assets; income-related government grants refer to those
other than asset-related government grants. If the beneficiaries are not specified in
government documents, the Group will make the distinction according to the aforesaid
principle. Beneficiaries which are difficult to categorize shall be classified as income-
related government grants as a whole.
If the government subsidies are monetary assets, they shall be measured at the amount
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
actually received. For a subsidy allocated according to a fixed quota standard, or when
there is conclusive evidence at the end of the year that the relevant conditions stipulated in
the financial support policies can be met and the financial support funds are expected to
be received, the subsidy shall be measured according to the amount receivable; if the
government grants are non-monetary assets, they are measured at fair value. Where the
fair value cannot be reliably obtained, the grant is measured at a nominal amount (RMB 1).
Asset-related grants shall be used to offset the book value of related assets or presented
as deferred income, and shall, over the life of the related asset, be included in the current
gains/losses by the equal amortization method.
If the related asset is sold, transferred, scrapped, or damaged before the end of its useful
life, its deferred income that has not been distributed shall be transferred to the current
gains/losses of asset disposal.
Income-related grants that are used to compensate related costs or losses in subsequent
periods shall be deemed as deferred income and shall be included in the current
gains/losses during the period when the related costs or losses are recognized.
Government grants related to routine activities shall be included in other income in
accordance with the nature of the transaction. Government grants not related to routine
activities shall be included in non-operating revenue and expenditure.
The Group obtains interest grants on policy-related concessional loans in two different
ways: the interest subsidy funds are allocated by the government either to the lending
bank or directly to the Group. The respective accounting treatment is carried out as follows:
(1) Where the government allocates the funds to the lending bank, and the bank provides
a loan to the Group at a policy-related preferential interest rate, the actual amount of the
loan received is taken as the entry value, and the borrowing costs are calculated based on
the loan principal and the policy-related preferential interest rate.
(2) Where the government allocates the funds directly to the Group, the grants are offset
against borrowing costs.
Where the government grants that the Group has recognized in accounting need to be
returned, the accounting treatment in the current period is carried out as follows:
adjusted.
the excess will be included in current gains/losses;
The Group's deferred tax assets and deferred tax liabilities are calculated and recognized
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
based on the difference (temporary difference) between the tax base and the carrying
value of the assets and liabilities. In the case of deductible losses that can be deducted
from taxable income in subsequent years in accordance with the provisions of the tax laws,
the corresponding deferred tax assets are recognized. In the case of temporary
differences arising from the initial recognition of goodwill, the corresponding deferred
income tax liabilities are not recognized. With respect to temporary differences arising from
the initial recognition of an asset or liability in a transaction which is not a business
combination and which affects neither accounting profit nor taxable income (or deductible
losses), the corresponding deferred tax assets and deferred tax liabilities are not
recognized. On the balance sheet date, the deferred tax assets and deferred tax liabilities
are measured at the tax rate applicable to the period during which the assets are expected
to be recovered or the liabilities are expected to be settled.
The Group recognizes deferred tax assets to the extent of the taxable income which it is
most likely to obtain and which can be deducted from deductible temporary differences,
deductible losses and tax credits.
(1) Identification of leases
The term "lease" refers to a contract whereby the lessor transfers the right of use
regarding the leased asset(s) to the lessee within a specified time in exchange for
consideration. On the commencement date of the contract, the Group assesses whether
the contract is a lease or contains a lease. If a party to the contract transfers the right
allowing the control over the use of one or more assets that have been identified within a
certain period, in exchange for consideration, such contract is a lease or includes a lease.
In order to determine whether a party to the contract transfers the right allowing the control
over the use of the identified assets for a certain period of time, the Group assesses
whether the customers in the contract are entitled to obtain almost all the economic
benefits arising from the use of the identified assets during the use period, and have the
right to dominate the use of the identified assets during the use period.
If a contract contains multiple single leases at the same time, the Group will split the
contract, and conduct accounting treatment of each single lease respectively. If a contract
contains both lease and non-lease parts at the same time, the Group will split the lease
and non-lease parts for accounting treatment.
(2) The Group as a lessee
On the lease commencement date, the Group recognizes the right-of-use assets and
lease liabilities in respect of the lease. For the recognition and measurement of right-of-
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
use assets and lease liabilities, please refer to Note IV "25. Right-of-use assets" and "31.
Lease liabilities".
A lease modification refers to a change in the scope, consideration, and term of lease
outside the original contract clauses, including the addition or termination of the right to
use one or more leased assets, and the extension or reduction of the lease term specified
in the contract. The effective date of lease modification refers to the date when both
parties reach an agreement on the lease modification.
If there is any modification in the lease and the following conditions are met at the same
time, the Group shall account for the lease modification as a separate lease: ① the lease
modification expands the lease scope or extends the lease term by adding the right to use
one or more leased assets; ② The increased consideration is equivalent to the amount of
the separate price of the expanded part of the lease scope or the extended part of the
lease term adjusted according to the contract situation.
If the lease modification is not accounted for as a separate lease, on the effective date of
the lease modification, the Group amortizes the consideration of the contract after the
modification in accordance with the relevant provisions of the lease standards and re-
determines the lease term after the modification; and discounts the changed lease
payments using the revised discount rate to remeasure the lease liabilities. When
calculating the present value of the lease payment after the modification, the Group uses
the interest rate implicit in the lease for the remaining lease period as the discount rate; if
the interest rate implicit in the lease for the remaining lease term cannot be determined,
the Group adopts the lessee's incremental borrowing rate on the effective date of the lease
modification as the discount rate. With regard to the impact of the above-mentioned lease
liability adjustment, the Group distinguishes the following situations for accounting
treatment: ① If the lease modification narrows the lease scope or shortens the lease term,
the lessee shall reduce the book value of the right-of-use assets accordingly, and include
the relevant gains/losses of partial or complete termination of the lease in the current
gains/losses. ② If other lease modifications result in the re-measurement of lease liabilities,
the lessee correspondingly adjusts the book value of the right-of-use assets.
For short-term leases with a lease term not exceeding 12 months and low-value asset
leases with lower value when single leased assets are brand new assets, the Group
chooses not to recognize right-of-use assets and lease liabilities. The Group includes the
lease payments of short-term leases and low-value asset leases in the cost of relevant
assets or current gains/losses on a straight-line basis over each period of the lease term.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(3) The Group as a lessor
On the basis that (1) the contract assessed is a lease or includes a lease, the Group, as
the lessor, classifies leases into finance leases and operating leases on the lease
commencement date.
If a lease substantially transfers virtually all risks and rewards associated with ownership of
the leased asset, the lessor classifies the lease as a finance lease and leases other than
finance leases as operating leases.
If a lease falls in one or more of the following circumstances, the Group usually classifies it
as a finance lease: ① the ownership of the leased asset will be transferred to the lessee at
the expiration of the lease term; ② the lessee has the option to purchase the leased asset,
and the purchase price is low enough compared with the fair value of the leased asset
when the option is expected to be exercised, so it can be reasonably determined that the
lessee will exercise the option on the lease commencement date; ③ Although the
ownership of the asset will not be transferred, the lease term covers most of the service
life of the leased asset; ④ On the lease commencement date, the current value of the
lease receipts is almost equal to the fair value of the leased assets; ⑤ The leased asset
can only be used by the lessee if no major modification is made due to its special nature. If
a lease has one or more of the following signs, the Group may also classify it as a finance
lease: ① If the lessee cancels the lease, the losses caused to the lessor by the
cancellation of the lease are to be borne by the lessee; ② Gains or losses arising from
fluctuations in the fair value of the residual value of the asset are attributable to the lessee;
③ The lessee has the ability to continue the lease to the next period at a rent far below the
market level.
Initial Measurement
On the commencement date of the lease term, the Group recognizes the finance lease
receivables for the finance lease and derecognizes the leased asset of the finance lease.
When initially measuring the finance lease receivables, the Group recognizes the net
investment in the lease as the entry value of the finance lease receivables.
The net investment in the lease is the sum of the unguaranteed residual value and the
present value of the lease receipts not received at the commencement date of the lease
term discounted at the interest rate implicit in the lease. Lease receipts refer to the amount
that the lessor shall collect from the lessee due to the transfer of the right to use the leased
asset during the lease term, including: ① fixed payments and substantially fixed payments
to be paid by the lessee; if there are lease incentives, the relevant amount of lease
incentives shall be deducted; ② The amount of variable lease payments dependent on an
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
index or ratio. This amount is determined at the time of initial measurement based on the
index or ratio at the commencement date of the lease term; ③ The exercise price of the
call option, provided that it can be reasonably determined that the lessee will exercise the
option; ④ The amount to be paid by the lessee for exercising the option to terminate the
lease, provided that the lease term reflects that the lessee will exercise the option to
terminate the lease; ⑤ The residual value of the guarantee provided by the lessee, the
party related to the lessee, or an independent third party economically capable of fulfilling
the guarantee obligation to the lessor.
Subsequent Measurement
The Group calculates and confirms the interest income at a fixed periodic rate in each
period in the lease term. The periodic rate refers to the rate of discount implicit in lease
adopted to determine the net investment in the lease (in the case of sublease, if the
interest rate implicit in lease of sublease cannot be determined, the rate of discount implicit
in original lease is adopted (adjusted according to the initial direct expenses related to
sublease)), or the revised rate of discount determined in accordance with the relevant
provisions where the change of the finance lease is not accounted for as a separate lease
and meets the condition that the lease will be classified as a finance lease if the change
became effective on the lease commencement date.
Accounting Treatment of Lease Change
If there is a change in a finance lease and the following conditions are met at the same
time, the Group shall account for the change as a separate lease: ① The change expands
the scope of the lease by adding the right to use one or more leased assets; ② The
increased consideration is equivalent to the amount of the separate price of the expanded
part of the lease scope adjusted according to the contract situation.
If the change of finance lease is not accounted for as a separate lease, and the condition
that the lease will be classified as an operating lease if the change takes effect on the
lease commencement date is met, the Group will account for it as a new lease from the
effective date of the lease change, and take the net lease investment before the effective
date of the lease change as the book value of the leased asset.
Treatment of rent
During each period of the lease term, the Group recognizes lease receipts from operating
leases as rental income on a straight-line basis.
Incentives provided
If the Group provides a rent-free period, it allocates the total rentals over the entire lease
term without deducting the rent-free period by the straight-line method, and also
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
recognizes rental income during the rent-free period. If certain expenses of the lessee are
borne, the Group allocates the balance of rental income over the lease term after such
expenses are deducted from the gross rental income.
Initial direct expenses
Initial direct expenses incurred by the Group in connection with operating leases shall be
capitalized to the cost of the leased underlying asset and recorded in the current
gains/losses in stages over the lease term on the same basis of recognition as rental
income.
Depreciation
For fixed assets in assets under operating lease, the Group adopts the depreciation policy
for similar assets to accrue depreciation; for other assets under operating lease, a
systematic and reasonable method is adopted for amortization.
Variable lease payments
The variable lease payments related to operating leases obtained by the Group that are
not included in the lease receipts are included in the current gains/losses when actually
incurred.
Change of operating leases
If an operating lease changes, the Group will regard it as a new lease for accounting
treatment from the effective date of the change. The advance receipt or the lease
receivable related to the lease prior to the change is recognized as the lease receipts of
the new lease.
The Group measures equity instrument investments at fair value on each balance sheet
date. Fair value refers to the price that can be received from selling an asset or paid to
transfer a liability in an orderly transaction between market participants on the
measurement date.
For assets and liabilities measured or disclosed at fair value in the financial statements,
the fair value level to which they belong is determined according to the lowest level input
that is significant to the fair value measurement as a whole: Level 1 inputs refer to
unadjusted quoted prices in the active market for the same assets or liabilities that can be
obtained on the measurement date; level 2 inputs refer to inputs other than Level 1 inputs
that are directly or indirectly observable for the relevant assets or liabilities; level 3 inputs
are the unobservable inputs of related assets and liabilities.
On each balance sheet date, the Group re-evaluates the assets and liabilities continuously
measured at fair value recognized in the financial statements to determine whether there is
a conversion between the levels of fair value measurement.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(1) Major changes in accounting policies
The Group has no changes in significant accounting policies during the current year.
(2) Major changes in accounting estimates
The Group has no significant changes in accounting estimates during the year.
V. Taxes
Category of taxes Tax basis Tax rate
Calculated the output tax at the tax rate and
paid the VAT by the amount after deducting
the deductible input VAT in the current
VAT 1%, 3%, 5%, 6%, 9%, 13%
period, of which the VAT applicable to easy
collection won’t belong to the deductible input
VAT.
Urban maintenance and 5%, 7% / See 2. Tax Preferences for
The circulating tax actually paid
construction tax details
Education surcharge The circulating tax actually paid 3% / See 2. Tax Preferences for details
Local education surcharge The circulating tax actually paid 2% / See 2. Tax Preferences for details
Enterprise income tax Taxable income 25%/ See 2. Tax Preferences for details
The main taxpayers of different corporate income tax rates are explained as follows:
Name of entity Income tax rate
Electronic Technology, Anhui Konka, Anhui Tongchuang, Shaanxi Konka, Xingda
Hongye, Bokang Precision, Jiangsu Konka Smart, Chengdu Konka Electronic, 15%
Chongqing Optoelectronic Technology
Hong Kong Konka, Kongdian Trading, Jiali International, Kongjietong, Jiaxin
Technology, Kongdian Investment, Hong Kong Communications, Zhongkang Storage 16.5%
Technology, Xinying Semiconductor (Hong Kong)
Konka Europe 15%
Kanghao Technology 22.5%
Konka North America 21%
The parent company and other subsidiaries 25%
Remarks: According to the Temporary Provisions of Income Tax of Trans-boundary Tax
Payment Enterprises by State Taxation Administration, resident enterprises without
business establishment or places of legal persons should be tax payment enterprises with
the administrative measures of income tax of “unified computing, level-to-level
administration, local prepayment, liquidation summary, and finance transfer”. It came into
force from January 1, 2008. According to the above methods, the Company’s sales branch
companies in each area will hand in the corporate income taxes in advance from January
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(1) According to the announcement of the State Taxation Administration No. 12 of 2023:
small low-profit enterprises shall reduce the taxable income amount by 25% and pay the
corporate income tax at the tax rate of 20%, which shall be continued until 31 December
tax, property tax, urban land use tax, stamp duty (excluding stamp duty on securities
transactions), farm land occupation tax, education surcharge and local education
surcharge shall be levied by half on small-scale VAT taxpayers, small low-profit
enterprises and individually-owned businesses from January 1, 2023 to December 31,
Incubator, Yibin Wisdom, Anlu Konka, Konka Tong, Zhongkang Semiconductor (Shaoxing),
Shengxing Industrial, Konka Suiyong, Nantong Konka, Digital Technology, Xiaojia
Technology, Shanghai Konka, Guizhou Konka New Materials, Ji'an Konka, Nanjing Konka
Smart Appliance, Xi'an Konka Intelligent, Chongqing Konka Yiyun, Zhejiang Konka
Electronics, Zhejiang Konka Technology Industry, Konka North China, Zhitong Technology,
and Shenzhen Nianhua enjoyed the aforementioned tax incentive policies during the
Reporting Period.
(2) On October 28, 2025, Anhui Konka, a subsidiary of the Company, obtained the
Certificate of High-Tech Enterprise jointly issued by the Department of Science and
Technology of Anhui Province, the Department of Finance of Anhui Province, and the
Anhui Provincial Tax Service of the State Taxation Administration, with the certificate
number GR202534004181, which is valid for three years. According to relevant tax
regulations, Anhui Konka will enjoy the relevant tax incentives for high-tech enterprises for
three consecutive years from 2025 to 2027, paying enterprise income tax at a preferential
rate of 15%.
(3) On October 16, 2023, Chongqing Optoelectronic Technology, a subsidiary of the
Company, obtained the Certificate of High-Tech Enterprise jointly issued by the Chongqing
Municipal Science and Technology Bureau, the Chongqing Municipal Finance Bureau, and
the Chongqing Municipal Tax Service of the State Taxation Administration, with the
certificate number GR202351100426, which is valid for three years. According to relevant
tax regulations, Chongqing Optoelectronic Technology will enjoy the relevant tax
incentives for high-tech enterprises for three consecutive years from 2023 to 2025, paying
enterprise income tax at a preferential rate of 15%.
(4) On October 28, 2025, Anhui Tongchuang, a subsidiary of the Company, obtained the
Certificate of High-Tech Enterprise jointly issued by the Department of Science and
Technology of Anhui Province, the Department of Finance of Anhui Province, and the
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Anhui Provincial Tax Service of the State Taxation Administration, with the certificate
number GR202534002702, which is valid for three years. According to relevant tax
regulations, Anhui Tongchuang will enjoy the relevant tax incentives for high-tech
enterprises for three consecutive years from 2025 to 2027, paying enterprise income tax at
a preferential rate of 15%.
(5) On December 19, 2025, Bokang Precision, a subsidiary of the Company, obtained the
Certificate of High-Tech Enterprise jointly issued by the Department of Science and
Technology of Guangdong Province, the Department of Finance of Guangdong Province,
and the Guangdong Provincial Tax Service of the State Taxation Administration, with the
certificate number GR202544008694, which is valid for three years. According to relevant
tax regulations, Bokang Precision will enjoy the relevant tax incentives for high-tech
enterprises for three consecutive years from 2025 to 2027, paying enterprise income tax at
a preferential rate of 15%.
(6) On December 25, 2025, Electronic Technology, a subsidiary of the Company, received
the Certificate of High-Tech Enterprise jointly issued by the Shenzhen Science and
Technology Innovation Committee, the Shenzhen Finance Bureau, and the Shenzhen Tax
Service of the State Taxation Administration, with the certificate number GR202544205959,
which is valid for three years. According to relevant tax regulations, Electronic Technology
will enjoy the relevant tax incentives for high-tech enterprises for three consecutive years
from 2025 to 2027, paying enterprise income tax at a preferential rate of 15%.
(7) On November 19, 2024, Xingda Hongye, a subsidiary of the Company, obtained the
Certificate of High-Tech Enterprise jointly issued by the Department of Science and
Technology of Guangdong Province, the Department of Finance of Guangdong Province,
and the Guangdong Provincial Tax Service of the State Taxation Administration, with the
certificate number GR202444002600, which will be valid for three years. According to
relevant tax regulations, Xingda Hongye is entitled to relevant preferential tax policies for
high-tech enterprises for three consecutive years from 2024 to 2026, and pays enterprise
income tax at a preferential tax rate of 15%.
(8) On November 29, 2023, Shaanxi Konka, a subsidiary of the Company, obtained the
Certificate of High-Tech Enterprise jointly issued by the Department of Science and
Technology of Shaanxi Province, the Department of Finance of Shaanxi Province, and the
Shaanxi Provincial Tax Service of the State Taxation Administration, with the certificate
number GR202361002167, which is valid for three years. According to relevant tax
regulations, Shaanxi Konka will enjoy the relevant tax incentives for high-tech enterprises
for three consecutive years from 2023 to 2025, paying enterprise income tax at a
preferential rate of 15%.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(9) On November 6, 2023, Jiangsu Konka Smart, a subsidiary of the Company, obtained
the Certificate of High-Tech Enterprise jointly issued by the Department of Science and
Technology of Jiangsu Province, the Department of Finance of Jiangsu Province, and the
Jiangsu Provincial Tax Service of the State Taxation Administration, with the certificate
number GR202332008044, which is valid for three years. According to relevant tax
regulations, Jiangsu Konka Smart will enjoy the relevant tax incentives for high-tech
enterprises for three consecutive years from 2023 to 2025, paying enterprise income tax at
a preferential rate of 15%.
(10) In accordance with the Announcement on the Renewal of the Enterprise Income Tax
Policy for Western Development Enterprises (Ministry of Finance, State Taxation
Administration, National Development and Reform Commission Announcement No. 23 of
industry specified in the Catalogue of Encouraged Industries in the Western Region and
whose main business income accounts for over 60% of its gross income in the current
year, is entitled to a reduced corporate income tax rate of 15%. Chengdu Konka
Electronics, a subsidiary of the Company, enjoys the preferential tax policy for Western
Development.
(11) According to the CS [2011] No. 100 published by the Ministry of Finance and the
State Taxation Administration, for the VAT general taxpayers who sell their self-developed
and produced software products, the VAT shall be levied at the rate of 13%, and then the
portion of the actual VAT burden exceeding 3% shall be refunded immediately upon
collection. The Company’s subsidiaries, Electronic Technology and Anhui Tongchuang all
enjoy this preferential policy.
VI. Notes to major items in the consolidated financial statements
Unless otherwise noted, for the financial statement data disclosed below, "beginning of the
year" refers to January 1, 2025, "end of the year" refers to December 31, 2025, "the
current year" refers to the period from January 1, 2025 to December 31, 2025, and "last
year" refers to the period from January 1, 2024 to December 31, 2024. The monetary unit
is renminbi.
Item Ending balance Beginning balance
Cash on hand 208.19
Bank deposits 5,169,889,627.52 2,942,927,002.53
Other monetary assets 1,144,052,257.53 1,172,840,037.01
Total 6,313,941,885.05 4,115,767,247.73
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Ending balance Beginning balance
Of which: Total amount of funds deposited
overseas 1,131,315.16 16,326,669.23
Remarks: the ending balance of other monetary funds is mainly the balance of pledged
time deposits, margin deposits and account balance on WeChat, Alipay and other
platforms. For details of restricted funds, please refer to "Note VI. 23. Assets with restricted
ownership or use right".
Item Ending balance Beginning balance
Financial assets measured at fair value through current
gains/losses 202,027,000.00 286,648,129.34
Of which: Investment in equity instruments 202,027,000.00 286,648,129.34
Total 202,027,000.00 286,648,129.34
(1) Presentation of notes receivable by category
Item Ending balance Beginning balance
Bank acceptance bills 50,977,695.45 148,019,004.66
Commercial acceptance bills 26,339,290.11 21,656,171.50
Total 77,316,985.56 169,675,176.16
(2) Classified and listed by provision methods for bad debts
Ending balance
Balance Provision for bad debts
Category
Provision Book value
Percentage
Amount Amount percentage
(%)
(%)
Provision for bad debts by
single item
Provision for bad debts by
portfolio 77,865,496.73 100.00 548,511.17 0.70 77,316,985.56
Of which: Bank acceptance
bills 50,977,695.45 65.47 50,977,695.45
Commercial acceptance bills 26,887,801.28 34.53 548,511.17 2.04 26,339,290.11
Total 77,865,496.73 100.00 548,511.17 0.70 77,316,985.56
(Continued)
Beginning balance
Balance Provision for bad debts
Category
Provision Book value
Percentage
Amount Amount percentage
(%)
(%)
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Beginning balance
Balance Provision for bad debts
Category
Provision Book value
Percentage
Amount Amount percentage
(%)
(%)
Provision for bad debts by
single item
Provision for bad debts by
portfolio 170,126,162.18 100.00 450,986.02 0.27 169,675,176.16
Of which: Bank acceptance
bills 148,019,004.66 87.01 148,019,004.66
Commercial acceptance
bills 22,107,157.52 12.99 450,986.02 2.04 21,656,171.50
Total 170,126,162.18 100.00 450,986.02 0.27 169,675,176.16
Provision for expected credit losses on commercial acceptance bills based on aging in the
portfolio
Ending balance
Name
Provision
Balance Provision for bad debts
percentage (%)
Within 1 year 26,887,801.28 548,511.17 2.04
Total 26,887,801.28 548,511.17 2.04
(3) Provision for bad debts of notes receivable made, recovered or reversed during
the year
Change in the current year
Beginning Recovered or
Category Ending balance
balance
Provision Written-off Others
Reversed
Commercial
acceptance bills 450,986.02 822,371.39 724,846.24 548,511.17
Total 450,986.02 822,371.39 724,846.24 548,511.17
(4) Notes receivable pledged at year-end
No notes receivable were pledged at the end of the year.
(5) Notes receivable endorsed or discounted but not yet matured as at the balance
sheet date at year-end
Amount derecognized at the end of Amount not derecognized at the
Item
the year end of the year
Bank acceptance bills 873,146,000.21
Commercial acceptance bills 25,720,556.07
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Amount derecognized at the end of Amount not derecognized at the
Item
the year end of the year
Total 873,146,000.21 25,720,556.07
(6) Notes receivable actually written off during the year
No notes receivable were actually written off in the current year.
(1) Accounts receivable aged analysis
Aging Ending book balance Beginning book balance
Within 1 year (including 1 year) 872,534,288.66 985,155,712.60
Over 5 years 1,445,571,151.66 1,217,501,924.55
Total 2,974,845,127.49 3,154,661,853.86
(2) Accounts receivable classified and listed by provision methods for bad debts
Ending balance
Balance Provision for bad debts
Category
Provision Book value
Percentage
Amount Amount percentage
(%)
(%)
Provision for bad
debts by single item 1,573,873,380.74 52.91 1,537,243,420.22 97.67 36,629,960.52
Provision for bad
debts by portfolio
Of which: Aging
portfolio 1,400,971,746.75 47.09 350,672,695.12 25.03 1,050,299,051.63
Subtotal of portfolio 1,400,971,746.75 47.09 350,672,695.12 25.03 1,050,299,051.63
Total 2,974,845,127.49 100.00 1,887,916,115.34 63.46 1,086,929,012.15
(Continued)
Beginning balance
Balance Provision for bad debts
Category
Provision Book value
Percentage
Amount Amount percentage
(%)
(%)
Provision for bad
debts by single item 1,612,578,129.18 51.12 1,530,953,048.13 94.94 81,625,081.05
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Beginning balance
Balance Provision for bad debts
Category
Provision Book value
Percentage
Amount Amount percentage
(%)
(%)
Provision for bad
debts by portfolio
Of which: Aging
portfolio 1,542,083,724.68 48.88 308,486,148.81 20.00 1,233,597,575.87
Subtotal of portfolio 1,542,083,724.68 48.88 308,486,148.81 20.00 1,233,597,575.87
Total 3,154,661,853.86 100.00 1,839,439,196.94 58.31 1,315,222,656.92
Beginning balance Ending balance
Name Provision Reasons
Provision for Provision for
Balance Balance percentage for the
bad debts bad debts
(%) provision
CEFC
Not
Shanghai
expected to
International 298,855,950.30 298,855,950.30 298,280,558.37 298,280,558.37 100.00 be
Group
recoverable
Limited
Hongtu Not
Sanpower expected to
Technology 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 100.00 be
Co., Ltd. recoverable
Not
Loxia Group expected to
Co., Ltd. 159,702,611.45 159,702,611.45 159,702,611.45 159,702,611.45 100.00 be
recoverable
Shenzhen Not
Yaode expected to
Technology 147,734,652.40 147,734,652.40 144,454,581.31 144,454,581.31 100.00 be
Co., Ltd. recoverable
Guang'an
Ouqishi Expected to
Electronic 113,139,940.86 110,965,942.46 113,139,940.86 110,965,942.46 98.08 be difficult to
Technology recover
Co., Ltd.
Zhongfu
Not
Tiangong
expected to
Construction 71,289,096.65 71,289,096.65 71,289,096.65 71,289,096.65 100.00 be
Group Co.,
recoverable
Ltd.
CCCC First
Not
Harbor
expected to
Engineering 65,221,300.00 65,221,300.00 65,221,300.00 65,221,300.00 100.00 be
Company
recoverable
Ltd.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Beginning balance Ending balance
Name Provision Reasons
Provision for Provision for
Balance Balance percentage for the
bad debts bad debts
(%) provision
Gome
Custom Not
(Tianjin) expected to
Home 57,021,975.73 57,021,975.73 57,021,975.73 57,021,975.73 100.00 be
Appliance recoverable
Co., Ltd.
Xingda Not
Hongye expected to
(Hong Kong) 51,902,301.95 51,902,301.95 51,902,301.95 51,902,301.95 100.00 be
Limited recoverable
Dongguan
Not
High Energy
expected to
Polymer 50,699,037.70 32,893,535.66 50,699,037.70 32,893,535.66 64.88 be fully
Materials
recoverable
Co., Ltd.
Expected to
Others 397,011,262.14 335,365,681.53 362,161,976.72 345,511,516.64 95.40 be difficult to
recover
Total 1,612,578,129.18 1,530,953,048.13 1,573,873,380.74 1,537,243,420.22 — —
Ending balance
Aging
Provision
Balance Provision for bad debts
percentage (%)
Within 1 year 865,171,957.96 17,649,507.97 2.04
Over 5 years 169,949,436.01 169,949,436.01 100.00
Total 1,400,971,746.75 350,672,695.12 25.03
(3) Provision for bad debts of accounts receivable set aside, recovered or reversed
in the current year
Change in the current year
Category Beginning balance
Provision Recovered or reversed
Provision for bad debts of accounts
receivable 1,839,439,196.94 84,972,783.90 31,101,240.08
Total 1,839,439,196.94 84,972,783.90 31,101,240.08
(Continued)
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Change in the current year
Category Ending balance
Written-off Others
Provision for bad debts of accounts
receivable -5,394,625.42 1,887,916,115.34
Total -5,394,625.42 1,887,916,115.34
Note: Among other changes for the year, there was a decrease of RMB 4,047,995.42 due
to foreign exchange rate fluctuations, and a decrease of RMB 1,346,630.00 due to loss of
control.
Among them, the provision for bad debts recovered or reversed in the current year with
significant amounts are:
Basis and rationality
of determining the
Recovered or Recovery
Unit Reason for reversal proportion of original
reversed amount method
provision for bad
debts
Received insurance
compensation from China
Export & Credit Insurance Insurance CDM has been written
Corporation, and compensation, off, so the full amount
CDM MIAMI INC 12,048,547.66
transferred 85% of the transfer of of the unpaid amount
creditor's rights and creditor's rights has been provided for
interests to the insurance
company
Total 12,048,547.66 — — —
(4) Accounts receivable actually written off in the current year
No accounts receivable were actually written off in the current year.
(5) Top five accounts receivable and contract assets in the ending balance
categorized by debtors
The total amount of accounts receivable with top five Ending balance categorized by
debtors in the current year was RMB 1,152,138,381.74, accounting for 38.73% of the total
Ending balance of accounts receivable. The total Ending balance of provision for bad
debts correspondingly set aside was RMB 848,821,590.70.
(1) Details of contract assets
Ending balance Beginning balance
Item
Provision for Provision for
Balance Book value Balance Book value
bad debts bad debts
Warranty 2,194,100.57 301,794.27 1,892,306.30 2,867,437.14 236,928.54 2,630,508.60
Total 2,194,100.57 301,794.27 1,892,306.30 2,867,437.14 236,928.54 2,630,508.60
(2) Classified presentation of contract assets by provisioning methods of bad debts
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Ending balance
Balance Provision for bad debts
Category
Provision Book value
Percenta
Amount Amount percentage
ge (%)
(%)
Provision for bad debts by single
item
Provision for bad debts by
portfolio
Of which: Aging portfolio 2,194,100.57 100.00 301,794.27 13.75 1,892,306.30
Subtotal of portfolio 2,194,100.57 100.00 301,794.27 13.75 1,892,306.30
Total 2,194,100.57 100.00 301,794.27 13.75 1,892,306.30
(Continued)
Beginning balance
Balance Provision for bad debts
Category
Provision Book value
Percentage
Amount Amount percentage
(%)
(%)
Provision for bad debts by
single item
Provision for bad debts by
portfolio
Of which: Aging portfolio 2,867,437.14 100.00 236,928.54 8.26 2,630,508.60
Subtotal of portfolio 2,867,437.14 100.00 236,928.54 8.26 2,630,508.60
Total 2,867,437.14 100.00 236,928.54 8.26 2,630,508.60
(3) Provision set aside for bad debts of contract assets by portfolio
Ending balance
Name
Provision for bad Provision percentage
Balance
debts (%)
Within 1 year 561,956.93 11,463.92 2.04
Total 2,194,100.57 301,794.27 13.75
(Continued)
Beginning balance
Name
Provision for bad Provision percentage
Balance
debts (%)
Within 1 year 631,436.80 12,881.31 2.04
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Beginning balance
Name
Provision for bad Provision percentage
Balance
debts (%)
Total 2,867,437.14 236,928.54 8.26
(4) Provision for bad debts of contract assets
Change in the current year
Charge- End of the
Beginning Recovered
Item The current off/Write- year Reason
Balance or reversed Others
year off in the Balance
in the Change
Provision current
current year
year
Warranty 236,928.54 64,865.73 301,794.27
Total 236,928.54 64,865.73 301,794.27
(5) Contract assets actually written off in the current year
There were no contract assets actually written off in the current year.
Item Ending balance Beginning balance
Notes receivable 155,957,556.43 63,943,324.53
Total 155,957,556.43 63,943,324.53
Item Ending balance Beginning balance
Interest receivable
Dividends receivable
Other receivables 942,267,792.91 989,245,120.86
Total 942,267,792.91 989,245,120.86
(1) Classified by account nature
Nature of funds Ending book balance Beginning book balance
Deposits, guarantees, and down payments 333,603,706.26 344,822,666.77
Amounts due from minority shareholders and
related parties arising from business 173,714,171.72 182,764,171.72
combinations not under common control
Energy-saving subsidies receivable 152,399,342.00 152,399,342.00
Amounts due from related parties 3,691,383,944.24 2,253,362,393.92
Others 1,022,177,199.12 1,035,865,828.21
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Nature of funds Ending book balance Beginning book balance
Total 5,373,278,363.34 3,969,214,402.62
(2) Other receivables listed by aging
Aging Ending book balance Beginning book balance
Within 1 year (including 1 year) 1,467,251,543.63 394,812,584.95
Over 5 years 2,572,576,744.55 1,802,280,946.35
Total 5,373,278,363.34 3,969,214,402.62
(3) Classified presentation of other receivables by provisioning methods of bad
debts
Ending balance
Balance Provision for bad debts
Category
Provision Book value
Percentage
Amount Amount percentage
(%)
(%)
Provision for bad debts
by single item 4,975,343,588.38 92.59 4,221,263,474.95 84.84 754,080,113.43
Provision for bad debts
by portfolio
Of which: Aging
portfolio 174,594,933.66 3.25 155,935,224.70 89.31 18,659,708.96
Low-risk portfolio 223,339,841.30 4.16 53,811,870.78 24.09 169,527,970.52
Subtotal of portfolio 397,934,774.96 7.41 209,747,095.48 52.71 188,187,679.48
Total 5,373,278,363.34 100.00 4,431,010,570.43 82.46 942,267,792.91
(Continued)
Beginning balance
Balance Provision for bad debts
Category
Provision Book value
Percentage
Amount Amount percentage
(%)
(%)
Provision for bad debts
by single item 3,524,335,366.36 88.79 2,773,496,740.31 78.70 750,838,626.05
Provision for bad debts
by portfolio
Of which: Aging portfolio 204,938,477.00 5.16 168,912,851.74 82.42 36,025,625.26
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Beginning balance
Balance Provision for bad debts
Category
Provision Book value
Percentage
Amount Amount percentage
(%)
(%)
Low-risk portfolio 239,940,559.26 6.05 37,559,689.71 15.65 202,380,869.55
Subtotal of portfolio 444,879,036.26 11.21 206,472,541.45 46.41 238,406,494.81
Total 3,969,214,402.62 100.00 2,979,969,281.76 75.08 989,245,120.86
Ending balance
Aging
Provision
Balance Provision for bad debts
percentage (%)
Within 1 year 30,987,870.02 455,455.39 1.47
Over 5 years 181,315,764.92 181,315,764.92 100.00
Total 397,934,774.96 209,747,095.48 52.71
credit loss model
Phase I Phase II Phase III
Expected credit
Expected credit loss
Provision for bad debts Expected credit loss throughout Total
throughout the
loss for the next the duration
duration (with credit
impairment)
loss)
Balance as of January 1,
Balance as of January 1,
-- Transfer to Stage II -1,112,942.99 1,112,942.99
-- Transfer to Stage III -16,067,075.02 16,067,075.02
-- Reversal to Stage II
-- Reversal to Stage I
Provision in the current year 455,455.39 39,231,080.91 1,442,626,944.96 1,482,313,481.26
Reversal in the current year 600,025.69 14,470,376.18 612,914.96 15,683,316.83
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Phase I Phase II Phase III
Expected credit
Expected credit loss
Provision for bad debts Expected credit loss throughout Total
throughout the
loss for the next the duration
duration (with credit
impairment)
loss)
Charge-off in the current
year
Write-off in the current year
Other changes -5,274,505.38 -10,314,370.38 -15,588,875.76
Balance as of December 31,
Remarks: The first stage is that credit risk has not increased significantly since initial
recognition. For other receivables with an aging portfolio and a low-risk portfolio within one
year, the loss provision is measured according to the expected credit losses in the next 12
months.
The second stage is that credit risk has increased significantly since initial recognition but
credit impairment has not yet occurred. For other receivables with an aging portfolio and a
low-risk portfolio that exceed one year, the loss provision is measured based on the
expected credit losses for the entire duration.
The third stage is credit impairment after initial recognition. For other receivables with
credit impairment that have occurred, the loss provision is measured according to the
credit losses that have occurred throughout the duration.
(4) Provision for bad debts of other receivables set aside, recovered or reversed in
the current year
Change in the current year
Category Beginning balance
Provision Recovered or reversed
Provision for bad debts of
other receivables
Total 2,979,969,281.76 1,482,313,481.26 15,683,316.83
(Continued)
Change in the current year
Category Ending balance
Written-off Others
Provision for bad debts of
other receivables -15,588,875.76 4,431,010,570.43
Total -15,588,875.76 4,431,010,570.43
Remarks: The amount of other changes during the year includes a decrease of RMB
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(5) Other receivables actually written off in the current year
No other receivables were actually written off in the current year.
(6) Other receivables with top five year-end balances categorized by debtors
The total amount of other receivables with top five ending balance categorized by debtors
in the current year was RMB 3,395,479,797.88, accounting for 63.19% of the total ending
balance of other receivables. The total ending balance of provision for bad debts
correspondingly set aside was RMB 2,975,828,359.15.
(1) Age of prepayments
Ending balance Beginning balance
Item
Amount Percentage (%) Amount Percentage (%)
Within 1 year 43,005,753.50 44.75 101,180,248.89 81.11
Over 3 years 571,760.52 0.59 20,182,805.45 16.18
Total 96,105,739.60 100.00 124,748,412.59 100.00
Remarks: The amount of prepayments of the Group aged over one year at the end of the
period was RMB 53,099,986.10, accounting for 55.25% of the total ending balance of
prepayments, which are mainly unsettled payments.
(2) Top five prepayments in the ending balance categorized by payees
The total amount of the top five prepayments in the year-end balance categorized by
payees in the current year was RMB 83,210,809.70, accounting for 86.58% of the total
year-end balance of prepayments.
(1) Inventories Classification
Ending balance
Item
Balance Provision for impairment Book value
Raw materials 535,044,975.99 161,547,556.59 373,497,419.40
Semi-finished products 110,173,191.36 61,564,204.04 48,608,987.32
Finished goods 1,946,864,898.54 893,886,141.81 1,052,978,756.73
Commissioned
processing materials 1,248,253.88 1,248,253.88
Development costs 30,197,755.10 13,632,674.11 16,565,080.99
Development products 207,777,173.26 38,429,041.00 169,348,132.26
Total 2,831,306,248.13 1,169,059,617.55 1,662,246,630.58
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(Continued)
Beginning balance
Item
Balance Provision for impairment Book value
Raw materials 665,144,044.54 108,024,878.82 557,119,165.72
Semi-finished products 110,372,128.69 42,305,974.41 68,066,154.28
Finished goods 2,189,720,769.60 491,936,445.95 1,697,784,323.65
Commissioned
processing materials 2,235,269.96 262,121.44 1,973,148.52
Development costs 26,677,475.24 26,677,475.24
Development products 346,650,809.82 3,622,890.30 343,027,919.52
Total 3,340,800,497.85 646,152,310.92 2,694,648,186.93
(2) Provision for inventory depreciation
Increase in the current year
Item Beginning balance
Provision or reversal Others
Raw materials 108,024,878.82 94,066,987.03
Semi-finished products 42,305,974.41 24,271,959.05
Finished goods 491,936,445.95 579,056,873.57
Commissioned
processing materials 262,121.44 -256,822.62
Development costs 13,632,674.11
Development products 3,622,890.30 38,429,041.00
Total 646,152,310.92 749,200,712.14
(Continued)
Decrease in the current year
Item Ending balance
Write-off Others
Raw materials 39,318,412.96 1,225,896.30 161,547,556.59
Semi-finished products 5,005,089.41 8,640.01 61,564,204.04
Finished goods 167,023,674.38 10,083,503.33 893,886,141.81
Commissioned
processing materials 5,298.82
Development costs 13,632,674.11
Development products 3,622,890.30 38,429,041.00
Total 214,970,067.05 11,323,338.46 1,169,059,617.55
Note: Other decreases in the current year were caused by changes in exchange rates.
Specific basis for determining the net realizable value and reasons for reversal or write-off
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
of provision for inventory depreciation and impairment provision for contract performance
costs during the current year:
Specific basis for provision for inventory Reasons for write-off of provision for
Item
depreciation inventory impairment in the current year
The net realizable value was lower than the
Raw materials Sold or used in the current year
book value
The net realizable value was lower than the
Semi-finished products Sold or used in the current year
book value
The net realizable value was lower than the
Finished goods Sold in the current year
book value
The net realizable value was lower than the
Development products Sold in the current year
book value
Item Ending balance Beginning balance
Prepaid taxes, deductible input tax, and export tax refund
receivable 619,195,913.75 525,546,353.28
Principal and interest of entrusted loans to associated
enterprises 235,601,218.08 1,590,781,482.74
Deferred expenses 14,313,545.63 18,606,081.90
Cost of goods returned receivable 10,287,129.13 14,460,748.65
Others 434,578.55 19,005,345.90
Less: Impairment provision for other current assets 118,264,443.38
Total 761,567,941.76 2,168,400,012.47
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Changes in the current year Reason for
Accumulated Accumulated designation to
Dividend gains included losses included measure at fair
Losses income in other in other value with
Beginning Gains included Ending
Item included in recognized comprehensiv comprehensive changes
balance Increase in Decrease in in other balance
other Others in the e income at income at the included in
investment investment comprehensive
comprehensive current year the end of the end of the other
income
income current year current year comprehensive
income
Beijing Huyu
Entertainment Long-term
Digital 5,901,121.80 6,000,000.00 holding based on
Technology 80 strategic purpose
Co., Ltd.
Feihong Long-term
Electronics Co., 1,300,000.00 holding based on
Ltd. strategic purpose
Shenzhen
Association of Long-term
Enterprises with 100,000.00 holding based on
Foreign strategic purpose
Investment
Shenzhen
Chuangce Long-term
Investment 485,000.00 holding based on
Development strategic purpose
Co., Ltd.
Shenzhen
Tianyilian Long-term
Science & 4,800,000.00 holding based on
Technology strategic purpose
Co., Ltd.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Changes in the current year Reason for
Accumulated Accumulated designation to
Dividend gains included losses included measure at fair
Losses income in other in other value with
Beginning Gains included Ending
Item included in recognized comprehensiv comprehensive changes
balance Increase in Decrease in in other balance
other Others in the e income at income at the included in
investment investment comprehensive
comprehensive current year the end of the end of the other
income
income current year current year comprehensive
income
Shanlian
Information Long-term
Technology 3,139,190.80 holding based on
Engineering 20 9.20 strategic purpose
Center Co., Ltd.
Shenzhen
Long-term
Zhongcailian 953,000.0 953,000.
Technology 200,000.00 holding based on
Co., Ltd.
Shanghai
National
Long-term
Engineering 2,400,000. 2,400,00
holding based on
Research
Center of Digital
TV Co., Ltd.
Guangdong
Long-term
Bohua Ultra HD 5,000,001. 5,000,00
holding based on
Innovation
Center Co., Ltd.
Total 5,901,121.80 16,024,190.80 —
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(1) Long-term equity investments
Changes in the current year
Provision for
Beginning
impairment
Investee balance
Beginning Gains/losses on
(Book value) Adjustments to
balance investment
Increase in Decrease in other
recognized under
investment investment comprehensive
the equity
income
method
Associates:
Kangkong Venture Capital (Shenzhen) Co., Ltd. 5,128,914.49 51,878.52
Nanjing Zhihuiguang Information Technology
Research Institute Co., Ltd.
Feidi Technology (Shenzhen) Co., Ltd. 15,120,554.12 7,208,123.71
Shenzhen Kangyue Industrial Co., Ltd. 24,977,328.88
Kangkai Technology Service (Chengdu) Co.,
Ltd.
Puchuang Jiakang Technology Co., Ltd. 3,560,497.42 2,736,994.29
Shenzhen Jielunte Technology Co., Ltd. 89,059,544.64 -8,894,353.34
Orient Excellent (Zhuhai) Asset Management
Co., Ltd.
Oriental Jiakang No. 1 (Zhuhai) Private Equity
Investment Fund (Limited Partnership)
Tongxiang Wuzhen Kunyu Venture Capital Co.,
Ltd.
Shenzhen RF-Link Technology Co., Ltd. 85,656,027.35
Anhui Kaikai Shijie E-commerce Co., Ltd. 365,522,727.56 118,401,234.06 -9,110,307.96 57,037.58
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Changes in the current year
Provision for
Beginning
impairment
Investee balance
Beginning Gains/losses on
(Book value) Adjustments to
balance investment
Increase in Decrease in other
recognized under
investment investment comprehensive
the equity
income
method
Kunshan Kangsheng Investment Development
Co., Ltd.
Shaanxi Silk Road Yunqi Intelligent Technology
Co., Ltd.
Shenzhen Kanghongxing Intelligent Technology
Co., Ltd.
Shenzhen Zhongkang Beidou Technology Co.,
Ltd.
Shenzhen Yaode Technology Co., Ltd. 214,559,469.35
Wuhan Tianyuan Group Co., Ltd. 545,842,155.57 239,447,355.00
Chuzhou Konka Technology Industry
Development Co., Ltd.
Chuzhou Kangjin Health Industry Development
Co., Ltd.
Nantong Konka Technology Industrial Park
Operation Management Co., Ltd.
Chuzhou Kangxin Health Industry Development
Co., Ltd.
Dongguan Guankang Yuhong Investment Co.,
Ltd.
Shenzhen Morsemi Semiconductor Technology
Co., Ltd.
Econ Technology Co., Ltd. 847,418,693.43 347,737,910.02 -5,557,305.38
Dongguan Kangjia New Materials Technology
Co., Ltd.
Chongqing Ypfun Technology Co., Ltd. 2,148,608,242.28 91,766,541.43 200,000,000.00
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Changes in the current year
Provision for
Beginning
impairment
Investee balance
Beginning Gains/losses on
(Book value) Adjustments to
balance investment
Increase in Decrease in other
recognized under
investment investment comprehensive
the equity
income
method
Yantai Kangyun Industrial Development Co., Ltd. 60,639,840.23 -60,639,840.23
E3 (Hainan) Technology Co., Ltd. 11,378,307.99 14,000,000.00 14,803,698.26
Shenzhen Konka Jiapin Intelligent Electrical
Apparatus Technology Co., Ltd.
Shenzhen Konka E-display Intelligent
Technology Co., Ltd.
Chongqing Yuanlv Benpao Real Estate Co., Ltd. 25,740,000.00
Shenzhen Kangpeng Digital Technology Co.,
Ltd.
Yantai Kangtang Construction Development Co.,
Ltd.
Dongguan Kangzhihui Electronics Co., Ltd. 18,648,646.28 -5,142,877.00
Beijing Kangjia Jingyuan Technology Co., Ltd. 687,957.04 -66,429.68
Chongqing Liangshan Enterprise Management
Co., Ltd.
Shenzhen Kangxi Technology Innovation
Development Co., Ltd.
Shandong Kangfei Intelligent Electrical
Appliances Co., Ltd.
Guangdong Kangyuan Semiconductor Co., Ltd. 7,360,542.07 -1,359,249.83
Chongqing Kangyiqing Technology Co., Ltd. 635,826.26 -490,401.87
Zhejiang Kangying Semiconductor Technology
Co., Ltd.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Changes in the current year
Provision for
Beginning
impairment
Investee balance
Beginning Gains/losses on
(Book value) Adjustments to
balance investment
Increase in Decrease in other
recognized under
investment investment comprehensive
the equity
income
method
Zhisheng Hong Kong Co., Ltd. 1,594,091.44 7,878.01
Chongqing Kangjian Photoelectric Technology
Co., Ltd.
Anhui Kangta Supply Chain Management Co.,
Ltd.
Wuhan Kangtang Information Technology Co.,
Ltd.
Sichuan Chengrui Real Estate Co., Ltd. 23,989,768.27 -1,632,580.79
Jiakang Industrial Development (Wuhan) Co.,
Ltd.
Hefei Kangxinwei Storage Technology Co., Ltd. 90,223,618.55 -6,163,287.96
Xi'an Kangan Intelligent Storage Technology
Co., Ltd.
Sichuan Hongxinchen Real Estate Development
Co., Ltd.
Konka Huanjia Environmental Protection
Technology Co., Ltd.
Kangrong Jiayuan Technology (Zhejiang) Co.,
Ltd.
Total 5,921,501,427.49 1,027,544,645.45 201,000,000.00 260,251,053.26 -379,277,342.69 1,776,376.21
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(Continued)
Changes in the current year
Provision for
Ending balance
Investee impairment
Cash dividends (Book value)
Ending balance
Changes in other or profits Provision for
Others
equity declared to be impairment
distributed
Associates:
Kangkong Venture Capital (Shenzhen) Co., Ltd. 5,180,793.01
Nanjing Zhihuiguang Information Technology
Research Institute Co., Ltd.
Feidi Technology (Shenzhen) Co., Ltd. 913,190.37 21,415,487.46
Shenzhen Kangyue Industrial Co., Ltd. 24,977,328.88
Kangkai Technology Service (Chengdu) Co.,
Ltd.
Puchuang Jiakang Technology Co., Ltd. 6,297,491.71
Shenzhen Jielunte Technology Co., Ltd. 80,165,191.30
Orient Excellent (Zhuhai) Asset Management
Co., Ltd.
Oriental Jiakang No. 1 (Zhuhai) Private Equity
Investment Fund (Limited Partnership)
Tongxiang Wuzhen Kunyu Venture Capital Co.,
Ltd.
Shenzhen RF-Link Technology Co., Ltd. 85,656,027.35
Anhui Kaikai Shijie E-commerce Co., Ltd. 329,481,474.22 26,987,982.96 447,882,708.28
Kunshan Kangsheng Investment Development
Co., Ltd.
Shaanxi Silk Road Yunqi Intelligent Technology
Co., Ltd.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Provision for
Ending balance
Investee Changes in the current year impairment
(Book value)
Ending balance
Shenzhen Kanghongxing Intelligent Technology
Co., Ltd.
Shenzhen Zhongkang Beidou Technology Co.,
Ltd.
Shenzhen Yaode Technology Co., Ltd. 214,559,469.35
Wuhan Tianyuan Group Co., Ltd. 8,618,395.70 -297,776,404.87
Chuzhou Konka Technology Industry
Development Co., Ltd.
Chuzhou Kangjin Health Industry Development
Co., Ltd.
Nantong Konka Technology Industrial Park
Operation Management Co., Ltd.
Chuzhou Kangxin Health Industry Development
Co., Ltd.
Dongguan Guankang Yuhong Investment Co.,
Ltd.
Shenzhen Morsemi Semiconductor Technology
Co., Ltd.
Econ Technology Co., Ltd. 123,382,687.03 718,478,701.02 471,120,597.05
Dongguan Kangjia New Materials Technology
Co., Ltd.
Chongqing Ypfun Technology Co., Ltd. 301,193.49 1,876,737,405.93 2,174,869.26 474,346,899.10 1,968,503,947.36
Yantai Kangyun Industrial Development Co.,
Ltd.
E3 (Hainan) Technology Co., Ltd. 3,425,390.27 14,000,000.00
Shenzhen Konka Jiapin Intelligent Electrical
Apparatus Technology Co., Ltd.
Shenzhen Konka E-display Intelligent
Technology Co., Ltd.
Chongqing Yuanlv Benpao Real Estate Co.,
Ltd.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Provision for
Ending balance
Investee Changes in the current year impairment
(Book value)
Ending balance
Shenzhen Kangpeng Digital Technology Co.,
Ltd.
Yantai Kangtang Construction Development
Co., Ltd.
Dongguan Kangzhihui Electronics Co., Ltd. -21,516.38 13,484,252.90
Beijing Kangjia Jingyuan Technology Co., Ltd. 621,527.36
Chongqing Liangshan Enterprise Management
Co., Ltd.
Shenzhen Kangxi Technology Innovation
Development Co., Ltd.
Shandong Kangfei Intelligent Electrical
Appliances Co., Ltd.
Guangdong Kangyuan Semiconductor Co., Ltd. 6,001,292.24
Chongqing Kangyiqing Technology Co., Ltd. 145,424.39
Zhejiang Kangying Semiconductor Technology
Co., Ltd.
Zhisheng Hong Kong Co., Ltd. 1,601,969.45
Chongqing Kangjian Photoelectric Technology
Co., Ltd.
Anhui Kangta Supply Chain Management Co.,
Ltd.
Wuhan Kangtang Information Technology Co.,
Ltd.
Sichuan Chengrui Real Estate Co., Ltd. 22,357,187.48 22,357,187.48
Jiakang Industrial Development (Wuhan) Co.,
Ltd.
Hefei Kangxinwei Storage Technology Co., Ltd. 17,959,051.24 102,019,381.83
Xi'an Kangan Intelligent Storage Technology
Co., Ltd.
Sichuan Hongxinchen Real Estate Development
Co., Ltd.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Provision for
Ending balance
Investee Changes in the current year impairment
(Book value)
Ending balance
Konka Huanjia Environmental Protection
Technology Co., Ltd.
Kangrong Jiayuan Technology (Zhejiang) Co.,
Ltd.
Total 18,260,244.73 9,531,586.07 3,175,620,107.46 -291,819,801.96 2,026,038,156.99 4,203,164,752.91
Note: Other changes in the current year were caused by the conversion of long-term equity investments accounted for by the equity
method in Wuhan Tianyuan Group Co., Ltd. to financial assets, the deregistration of E3 (Hainan) Technology Co., Ltd., and unrealized
profits from downstream transactions.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(2) Impairment test for long-term equity investments
disposal expenses
Item Book value Recoverable amount Impairment Amount
Yifang 2,351,084，305.03 474,346,899.10 1,876,737,405.93
Guan Kang Yuhong 457,019,657.61 457,019，657.61
Chuzhou Kangxin 176,837,544.74 176,837,544.74
Total 2,984,941,507.38 474,346,899.10 2,510,594,608.28
(Continued)
Determination method of fair Key Basis for determining key
Item
value and disposal costs parameters parameters
Fair value is recognized by the
Disposal expenses: in accordance
income approach; disposal
with the property rights transfer
expenses shall be charged in Fair value,
Yifang fee standards of Shanghai United
accordance with the business fee disposal costs
Assets and Equity Exchange Co.,
standards of the property rights
Ltd.
exchange.
The fair value of the asset is
Guan Kang Yuhong Asset-based approach Fair value estimated on the basis of the best
available information
The fair value of the asset is
Chuzhou Kangxin Asset-based approach Fair value estimated on the basis of the best
available information
Total — — —
future cash flows
Item Book value Recoverable amount Impairment Amount
Kaikai Shijie 356,469,457.18 26,987,982.96 329,481,474.22
Yikang Technology Co., Ltd. 841,861,388.05 718,478,701.02 123,382,687.03
Total 1,198,330,845.23 745,466,683.98 452,864,161.25
(Continued)
Basis for
Years of Forecast Key parameters for Key Parameters in Determination of Key
Item
Period the forecast period Stabilization Phase Parameters in the
Stabilization Period
The above key
After-tax discount rate After-tax discount rate indicators are
Kaikai Shijie (followed by a based on projected based on projected historical experience
stabilization period) revenue, costs, revenue, costs, and forecasts of market
expenses, etc. expenses, etc. development
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Basis for
Years of Forecast Key parameters for Key Parameters in Determination of Key
Item
Period the forecast period Stabilization Phase Parameters in the
Stabilization Period
The revenue growth
The growth rate for the
rate in the stabilization
forecast period is 0%, The stable period
period is 0.00%, and
Yikang 2026 to 2043 the profit margin of the growth rate is 0%, the
the profit margin and
Technology (followed by a construction business profit margin is 15%,
discount rate are
Co., Ltd. stabilization period) in the forecast period is and the pre-tax
consistent with the last
year of the forecast
capital is 6.5%
period
Total — — — —
Item Ending balance Beginning balance
Kunshan Xinjia Emerging Industry Equity Investment Fund
Partnership (Limited Partnership) 119,414,203.99 230,264,035.04
China Asset Management - Jiayi Overseas Designated Plan 200,732,067.00 200,732,067.00
Tongxiang Wuzhen Jiayu Digital Economy Industry Equity
Investment Partnership (Limited Partnership) 178,532,220.44 197,621,072.79
Yibin OCT Sanjiang Properties Co., Ltd. 175,054,364.03 174,599,313.55
Chongqing Kangxin Equity Investment Fund Partnership (Limited
Partnership) 145,591,716.60 144,028,481.56
Yancheng Kangyan Information Industry Investment Partnership
(Limited Partnership) 135,763,664.30 139,166,271.83
Daye Trust - Huilibao No. 19 100,000,000.00
CCB Trust - Caidie No. 6 Property Rights Trust Plan 300,000.00 66,080,293.70
Yibin Kanghui Electronic Information Industry Equity Investment
Partnership (Limited Partnership) 58,967,986.53 59,264,288.31
Chuzhou Jiachen Information Technology Consulting Service
Partnership (Limited Partnership) 58,296,141.16
Tianjin Property No. 8 Enterprise Management Partnership
(Limited Partnership) 28,540,777.26
Tianjin Huacheng Property Development Co., Ltd. 1,000,000.00 1,000,000.00
Shenzhen Kanghuijia Technology Co., Ltd. 1,033.45 1,033.45
Subtotal of equity investments 1,015,357,256.34 1,399,593,775.65
Shenzhen Gaohong Enterprise Consulting Management
Partnership (Limited Partnership) 120,874,956.69 120,874,956.69
Nanjing Kangfeng Dejia Asset Management Partnership (Limited
Partnership) 100,000,000.00
Shenzhen Zitang No. 1 Enterprise Consulting Management
Partnership (Limited Partnership) 99,000,000.00
Shenzhen Beihu Technology Partnership (Limited Partnership) 15,000,000.00 59,735,232.88
Xi'an Bihuijia Enterprise Management Consulting Partnership
(Limited Partnership) 7,520,520.00 14,685,194.12
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Ending balance Beginning balance
Shanxi Kangmengrong Enterprise Management Consulting
Partnership (Limited Partnership) 3,028,480.00 8,520,728.55
Subtotal of debt investments 146,423,956.69 402,816,112.24
Total 1,161,781,213.03 1,802,409,887.89
(1) Investment properties measured at the cost mode
Item Houses and buildings Land use right Total
I. Original Book Value
(1) Purchase 1,225,721.11 249,409.16 1,475,130.27
(2) Transfer-in of inventories\fixed
assets\construction in 11,010,872.95 11,010,872.95
progress\intangible assets
(1) Disposal 39,320,464.65 39,320,464.65
(2) Other transfer-out 1,608,098.97 75,154,029.62 76,762,128.59
II. Accumulated depreciation and
accumulated amortization
(1) Provision or amortization 53,859,884.41 2,861,554.41 56,721,438.82
(1) Disposal 4,399,911.15 4,399,911.15
(2) Other transfer-out 13,925,274.77 844,000.32 14,769,275.09
III. Provision for Impairment
(1) Provision 602,125,392.90 41,517,528.88 643,642,921.78
(1) Disposal
(2) Other transfer-out
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Houses and buildings Land use right Total
IV. Book value
year 1,503,406,164.36 147,437,075.15 1,650,843,239.51
Note: The other assets transferred in the decreases amount from investment properties in
the current period was reclassified according to the purpose of holding and transferred into
fixed assets.
(2) Impairment test of investment properties measured at cost
In 2025, the Group conducted impairment tests on the investment properties of its
headquarters, Xi'an Kanghong, Yibin Konka Industrial Park, Suining Konka Industrial Park,
etc.. The recoverable amount was determined as the higher of fair value less costs of
disposal and the present value of estimated future cash flows. A total asset impairment
loss of RMB 643,642,921.78 was recognized.
disposal expenses
Item Book value Recoverable amount Impairment Amount
Xi'an Kanghong 100,206,506.24 88,833,134.00 11,373,372.24
Total 100,206,506.24 88,833,134.00 11,373,372.24
(Continued)
Determination method of Basis for
Item fair value and disposal Key parameters determining key
costs parameters
Comparable unit price of
investment property to be
appraised = Price of
comparable instance after
establishing comparison
The comparable
benchmark × Trading Comparable instance price, trading
instance price is
Xi'an Kanghong correction coefficient × correction coefficient, location
defined through
Trading time adjustment adjustment coefficient, etc.
inquiry records.
coefficient × Location
adjustment coefficient ×
Physical condition
adjustment coefficient ×
Equity adjustment coefficient
Total — — —
future cash flows
Item Book value Recoverable amount Impairment Amount
Guangming Technology 540,352,724.57 320,593,149.91 219,759,574.66
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Book value Recoverable amount Impairment Amount
Center
Yibin Konka Industrial Park 105,369,207.16 70,346,651.37 35,022,555.79
Suining Konka Industrial Park 238,797,042.25 77,853,042.25 160,944,000.00
Total 884,518,973.98 468,792,843.53 415,726,130.45
(Continued)
Basis for
Key parameters Key Parameters
Years of Forecast Determination of Key
Item for the forecast in Stabilization
Period Parameters in the
period Phase
Stabilization Period
Rent increase Rent increase
Guangming 2026 to 2043 (followed Based on forecasts of
(decrease) rate of (decrease) rate of
Technology Center by a stabilization period) market trends.
The real estate value is
determined based on
the market price of
Annual total Annual total similar real estate
income from real income from real transactions on the
Yibin Konka Industrial 2026 to 2068 (followed estate; annual estate; annual valuation base date, the
Park by a stabilization period) total expenses; total expenses; location and physical
discount rate; discount rate; condition of the real
useful life. useful life. estate to be valued, and
the development trend
of the real estate market
in the area.
Refer to the leasing
Rent increase Rent increase market conditions and
Suining Konka 2026 to 2035 (followed
(decrease) rate; (decrease) rate; historical operational
Industrial Park by a stabilization period)
vacancy rate. vacancy rate. data of the project in the
region.
Total — — — —
(3) Investment properties measured by fair value
The Group had no investment properties measured at fair value.
(4) Investment properties converted and measured at fair value in the current year
There was no conversion of investment property measured at fair value in the current year.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(5) Investment properties for which property right certificates have not yet been
issued
Reason for incomplete
Item Book value
property rights certificate
The project has not yet
Suining Konka Electronic Product Standard
Factory Project
registration
Houses and buildings of Xi'an Kanghong 88,833,134.00 In progress
Yantai Kangjin's properties and buildings 19,180,060.44 In progress
(6) Investment properties with restricted ownership or use right
Item Book value Reason for restriction
Guangming Technology Center 320,593,149.91 Mortgaged for loan
Houses and buildings of Xi'an Kanghong 88,833,134.00 Mortgaged for loan
Properties and buildings of Shaanxi Konka
Intelligent
Total 445,326,656.45
Item Ending balance Beginning balance
Fixed assets 4,405,958,959.37 5,005,836,928.31
Liquidation of fixed assets
Total 4,405,958,959.37 5,005,836,928.31
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(1) Fixed assets
Properties and Electronic Transportation
Item Machinery Equipment Other equipment Total
Buildings Equipment equipment
I. Original Book Value
Year 83,720,909.97 152,827,832.87 8,201,922.73 978,033.36 2,689,438.82 248,418,137.75
(1) Purchase 5,419,166.63 59,698,021.58 7,518,709.54 978,033.36 2,643,088.24 76,257,019.35
(2) Transfer-in of
construction in progress 3,415,007.15 90,314,292.77 656,040.70 16,646.02 94,401,986.64
(3) Increase in business
combination
(4) Other increase 74,886,736.19 2,815,518.52 27,172.49 29,704.56 77,759,131.76
Year 28,877,649.03 150,089,536.69 7,625,549.27 5,262,438.25 5,006,499.64 196,861,672.88
(1) Disposal or write-off 20,018,497.00 142,382,023.11 7,522,156.72 5,262,094.31 3,442,760.66 178,627,531.80
(2) Decrease for loss of
control 1,537,858.92 1,537,858.92
(3) Other decreases 8,859,152.03 7,707,513.58 103,392.55 343.94 25,880.06 16,696,282.16
II. Accumulated Depreciation
Year 127,570,622.20 233,980,199.22 24,631,683.84 2,490,034.69 12,837,212.21 401,509,752.16
(1) Provision 113,645,347.43 233,980,199.22 24,631,683.84 2,429,168.38 12,837,212.21 387,523,611.08
(2) Other increase 13,925,274.77 60,866.31 13,986,141.08
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Properties and Electronic Transportation
Item Machinery Equipment Other equipment Total
Buildings Equipment equipment
Year
(1) Disposal or write-off 11,349,847.93 116,602,091.32 6,634,514.23 4,554,153.80 2,923,696.83 142,064,304.11
(2) Decrease for loss of
control 390,776.95 390,776.95
(3) Other decreases 4,550.16 609,292.04 24,555.85 309.54 57,489.10 696,196.69
III. Provision for Impairment
Year 148,077,476.05 246,408,788.21 2,643,277.81 1,127,523.75 6,518,543.55 404,775,609.37
(1) Provision 148,077,476.05 246,408,788.21 2,643,277.81 1,127,523.75 6,518,543.55 404,775,609.37
(2) Other increase
Year 11,486,338.13 51,233.10 20,675.15 141,403.59 11,699,649.97
(1) Disposal or write-off 11,486,338.13 51,233.10 20,675.15 141,403.59 11,699,649.97
(2) Decrease for loss of
control
(3) Other decreases
IV. Book value
beginning of the year 3,139,000,140.71 1,723,176,138.61 80,993,332.71 10,395,007.16 52,272,309.12 5,005,836,928.31
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Note ①: The decrease in properties and buildings, and machinery and equipment due to disposal or write-off this year was mainly
attributable to the disposal and auction of some outdated equipment of Frestec Refrigeration after Frestec Smart Home was put into
operation, and the disposal of some idle equipment by Anhui Konka. ②: The decrease in properties and buildings due to other reasons
this year was attributable to the transfer to investment properties.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(2) Temporarily idle fixed assets
Accumulated Provision for
Item Original book value Book value
depreciation impairment
Machinery
Equipment 977,416,205.13 630,494,531.01 301,239,093.89 45,682,580.23
Housing and
building 364,676,775.60 220,860,420.94 106,439,814.25 37,376,540.41
Electronic
Equipment 8,054,959.87 7,154,053.85 387,915.49 512,990.53
Transportation
equipment 3,663,604.17 3,385,905.95 85,993.19 191,705.03
Other equipment 15,124,041.99 13,436,100.85 1,539,050.28 148,890.86
Total 1,368,935,586.76 875,331,012.60 409,691,867.10 83,912,707.06
(3)Fixed assets leased out through operating leases
Item Ending book value
Housing and building 166,315,497.45
Machinery Equipment 10,853,396.97
Electronic Equipment 139,076.29
Transportation equipment 312.63
Other equipment 198,247.64
Total 177,506,530.98
(4) Fixed assets without certificate of title
Reason for incomplete
Item Book value
property rights certificate
Fenggang Konka Smart TV Project 404,194,048.10 In progress
Anhui Konka properties and buildings 162,429,987.67 In progress
The project has not yet
Standard electronic product plant in
Suining
registration
Yikang Building property 31,087,304.59 In progress
Frestec Smart Home properties and
buildings
(5) Impairment test of fixed assets
In 2025, impairment tests were conducted on the fixed assets of the Group’s headquarters,
Jiangxi Konka, Dongguan Konka, etc.. The recoverable amounts were determined based
on the net amounts of fair value less costs of disposal, and a total asset impairment loss of
RMB 404,775,609.37 was recognized.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Book value Recoverable amount Impairment Amount
Properties and buildings of the
Group's headquarters 128,113,966.02 86,868,433.00 41,245,533.02
Equipment of Dongguan
Konka 29,162,230.62 1,179,269.91 27,982,960.71
Jiangxi Konka 379,736,152.62 80,311,836.13 299,424,316.49
Total 537,012,349.26 168,359,539.04 368,652,810.22
(Continued)
Determination method of fair Basis for determining key
Item Key parameters
value and disposal costs parameters
Market value = Market price of
Market price of Representative transaction examples
Properties and comparable instances × Transaction
comparable from similar real estate transacted in
buildings of the condition correction coefficient ×
instances, recent periods are selected as
Group's Transaction date adjustment
correction comparable instances for the
headquarters coefficient × Real estate condition
coefficient evaluated real estate.
adjustment coefficient
determined by the net proceeds from
the disposal of waste materials
Recovery unit (demolition and transportation costs
Fair value = Recovery unit price × price, equipment are borne by the recycling unit); 2. The
Equipment of
Equipment quantity; disposal cost = quantity, equipment quantity is determined
Dongguan Konka
Intermediary service fee intermediary through on-site inventory counts; 3.
service fee The intermediary service fee mainly
includes evaluation fees and the
intermediary fees of the trading
platform.
① Residual value/Fair value of The texture or weight of the recyclable
assets = Weight of recyclable materials with recycling value in the
materials with recycling value in assets to be dismantled was
assets to be dismantled (reasonable estimated or calculated mainly based
loss deducted) × Market unit price of on the corresponding materials
the corresponding materials; provided by the Company and the on-
② Relocatable equipment = Asset site survey results; the asset
acquisition cost × Comprehensive acquisition cost was mainly
Weight of
condition rate - Relocation determined through direct inquiry to
recyclable
dismantling expenses - Dismantling dealers or manufacturers, or with
materials, asset
loss; reference to merchants' price lists,
Jiangxi Konka acquisition cost,
③ Non-relocatable equipment = price information published on
assets adjusted unit
Market value of the physical assets relevant professional websites, as well
price,
in the equipment to be dismantled as possible price fluctuations; while
comprehensive
after being disassembled into collecting comparable transaction
condition rate
components - Equipment cases, a number of recent comparable
disassembly cost transaction cases with similar uses
④ Fair value of land use rights = and similar locations to the evaluated
evaluated unit price × land area; land use rights were compared with
evaluated unit price = (Adjusted unit the evaluated land use rights.
price of Case 1 + Adjusted unit price Following the corrections for factors
of Case 2 + Adjusted unit price of such as transaction details,
Case N) ÷ N transaction date, and real estate
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Determination method of fair Basis for determining key
Item Key parameters
value and disposal costs parameters
condition, the corrected adjusted price
was acquired.
Total — — —
(6) Fixed assets with restricted ownership or use right
Item Ending book value Reason for restriction
Anhui Konka properties and buildings 571,493,720.58 Mortgaged for loan
Properties and buildings of Shaanxi Konka
Intelligent
Buildings and machinery and equipment of
Frestec Smart Home
Buildings of Chongqing Konka 147,489,012.28 Mortgaged for loan
Housing and buildings of Anhui Tongchuang 130,401,949.70 Mortgage for invoicing
Housing and buildings of Frestec Refrigeration 69,933,241.57 Mortgaged for loan
Buildings of Konka Group 49,376,036.91 Mortgaged for loan
Buildings of Jiangsu Konka Intelligent 30,159,089.35 Mortgaged for loan
Housing and buildings of XingDa HongYe 24,149,230.30 Mortgaged for loan
Machinery and equipment of Xinfeng
Microcrystalline
Original shareholder guarantee
Housing and buildings of Jiangxi Konka 1,627,384.41 mortgage
Machinery and equipment of Bokang Precision 86,548.67 Litigation involved
Total 1,619,724,502.81
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(1) Construction in progress situation
Ending balance Beginning balance
Item Provision for Provision for
Balance Book value Balance Book value
impairment impairment
Jiangxi High-permeability
Crystallisation Kiln 246,576,748.57 245,645,748.57 931,000.00 246,576,748.57 56,387,538.57 190,189,210.00
Construction of Suining
Electronic Industrial Park 159,521,528.40 79,545,109.40 79,976,419.00 177,739,108.43 177,739,108.43
Workshops
Suining Konka Hongye Plant
Decoration Project 119,870,565.87 119,870,565.87 84,574,481.80 84,574,481.80
Production Line Renovation
Project of Jiangxi Konka 77,761,891.85 71,639,231.85 6,122,660.00 85,354,578.78 17,688,178.78 67,666,400.00
Construction and Decoration
Project of Phase I of
Dongguan Konka Science and 41,073,754.17 41,073,754.17 53,096,645.21 53,096,645.21
Technology Industrial Park
Other projects 352,832,974.12 84,469,891.23 268,363,082.89 333,576,197.93 33,799,544.33 299,776,653.60
Total 997,637,462.98 481,299,981.05 516,337,481.93 980,917,760.72 107,875,261.68 873,042,499.04
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(2) Changes in major projects under construction in the current year
Increase in the Decrease in the current year
Name Beginning balance Ending balance
current year Transfer to fixed assets Other decreases
Construction of Suining Electronic Industrial
Park Workshops 177,739,108.43 440,698.68 18,658,278.71 159,521,528.40
Suining Konka Hongye Plant Decoration
Project 84,574,481.80 35,296,084.07 119,870,565.87
Total 262,313,590.23 35,736,782.75 18,658,278.71 279,392,094.27
(Continued)
Proportion of the Accumulated Including: Amount Capitalization
project Engineering amount of of interest rate of the Source of
Name Budget
accumulative input Progress interest capitalized in the interests in the funds
in budget (%) capitalization current year current year (%)
Construction of Suining Electronic own funds
Industrial Park Workshops 76,342.22 95.00 95.00
Suining Konka Hongye Plant self-owned
Decoration Project 13,774.10 87.00 87.00 funds and
bank loans
Total 90,116.32
Note: Other decreases in the current year are mainly due to the adjustment of construction in progress costs based on settlement.
(3) Provision set aside for impairment of construction in progress in the current year
Increase in the current Decrease in the
Category Beginning balance Ending balance Reason for provision
year current year
Work has been
Jiangxi High-permeability Crystallisation suspended and there are
Kiln Project 56,387,538.57 189,258,210.00 245,645,748.57 no future development
plans
Jiangxi High Transparent Substrate 33,795,466.66 17,760,843.60 44,563.08 51,511,747.18 Work has been
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Increase in the current Decrease in the
Category Beginning balance Ending balance Reason for provision
year current year
Production Line Project suspended and there are
no future development
plans
Work has been
Jiangxi Konka Production Line Renovation suspended and there are
Project 17,688,178.78 55,820,730.44 1,869,677.37 71,639,231.85 no future development
plans
Work has been
Suining Konka Flexible FPC Plant suspended and there are
Equipment Installation 32,860,823.52 32,860,823.52 no future development
plans
Construction of Suining Electronic Industrial
Park Workshops
Work has been
suspended and there are
Other projects 4,077.67 93,242.86 97,320.53 no future development
plans
Total 107,875,261.68 375,338,959.82 1,914,240.45 481,299,981.05 —
(4) Impairment test of construction in progress
Determination
Impairment Basis for determining key
Item Book value Recoverable amount method of fair value Key parameters
Amount parameters
and disposal costs
Economic depreciation rate = (1 -
Recoverable amount (capacity of equipment expected to be
Jiangxi High-
= replacement costs × utilized / original design capacity of
permeability Economic
Crystallisation Kiln depreciation rate
depreciation rate) - x 100%. Economy of scale index, i.e.,
Project
disposal costs empirical data, takes the value of 0.7
for the processing industry in general.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Determination
Impairment Basis for determining key
Item Book value Recoverable amount method of fair value Key parameters
Amount parameters
and disposal costs
Economic depreciation rate = (1 -
Recoverable amount (capacity of equipment expected to be
Jiangxi High
= replacement costs × utilized / original design capacity of
Transparent Economic
Substrate Production depreciation rate
depreciation rate) - x 100%. Economy of scale index, i.e.,
Line Project
disposal costs empirical data, takes the value of 0.7
for the processing industry in general.
Economic depreciation rate = (1 -
Recoverable amount (capacity of equipment expected to be
Jiangxi Konka = replacement costs × utilized / original design capacity of
Economic
Production Line 61,943,390.44 6,122,660.00 55,820,730.44 (1 - economic equipment) ^ economy of scale index)
depreciation rate
Renovation Project depreciation rate) - x 100%. Economy of scale index, i.e.,
disposal costs empirical data, takes the value of 0.7
for the processing industry in general.
Realisation coefficient = influence
coefficient of property right integrity ×
Suining Konka Recoverable amount influence coefficient of social demand
Flexible FPC Plant = replacement cost × Realisation and current policy × influence
Equipment 77,448,423.52 44,587,600.00 32,860,823.52 realisation coefficient coefficient coefficient of equipment type ×
Installation - disposal expenses influence coefficient of proposed
disposal method × influence coefficient
of disposal time limit
Economic depreciation rate = (1 -
Recoverable amount (capacity of equipment expected to be
= replacement costs × utilized / original design capacity of
Economic
Other projects 434,289.76 341,046.90 93,242.86 (1 - economic equipment) ^ economy of scale index)
depreciation rate
depreciation rate) - x 100%. Economy of scale index, i.e.,
disposal costs empirical data, takes the value of 0.7
for the processing industry in general.
Total 358,345,467.32 62,551,616.90 295,793,850.42 — — —
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Key
Key parameters
Recoverable Impairment Years of Parameters in Basis for Determination of Key
Item Book value for the forecast
amount Amount Forecast Period Stabilization Parameters in the Stabilization Period
period
Phase
The discount rate adopts the weighted
average cost of capital (WACC), which is
the expected total return on investment
and the weighted average of the expected
Construction of
From June 1, return on equity and the after-tax return on
Suining Electronic After-tax Discount After-tax
Industrial Park Rate Discount Rate
Workshops
enterprise where the construction in
progress and related land use rights are
located by selecting comparable
companies for analysis and calculation.
Total 159,521,528.40 79,976,419.00 79,545,109.40 — — — —
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Right-of-Use Assets
Properties and Machinery Electronic
Item Total
Buildings Equipment Equipment
I. Original Book Value
Current Year 12,583,212.22 2,878,728.21 367,441.04 15,829,381.47
(1) Leased-in 12,583,212.22 2,878,728.21 367,441.04 15,829,381.47
(2) Others
Current Year 26,963,263.68 26,963,263.68
(1) Decrease for Loss of
Controlling Right 13,614,794.47 13,614,794.47
(2) Others 13,348,469.21 13,348,469.21
II. Accumulated
Depreciation
Current Year 50,550,632.05 674,823.81 94,062.82 51,319,518.68
(1) Provision 50,550,632.05 674,823.81 94,062.82 51,319,518.68
(2) Others
Current Year 14,344,266.37 14,344,266.37
(1) Decrease for Loss of
Controlling Right 4,524,918.34 4,524,918.34
(2) Others 9,819,348.03 9,819,348.03
III. Provision for
Impairment
Current Year
(1) Provision
Current Year
(1) Disposal
IV. Book value
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Properties and Machinery Electronic
Item Total
Buildings Equipment Equipment
beginning of the year 177,781,021.19 256,918.60 147,739.56 178,185,679.35
Remarks: The other decreases in original value and accumulated depreciation are mainly
due to the termination of leases.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(1) List of intangible assets
Patent and know- Right to use software and
Item Land use right Trademark right Franchise rights Total
how others
I. Original Book Value
Year 1,072,899.29 10,298,099.42 11,370,998.71
(1) Purchase 6,044,338.78 6,044,338.78
(2) Transfer-in of
construction in progress 4,228,288.94 4,228,288.94
(3) Other reasons 1,072,899.29 25,471.70 1,098,370.99
Year 6,976,554.62 4,144,403.75 25,471.70 771,835.35 11,918,265.42
(1) Disposal or write-off 6,976,554.62 4,144,403.75 771,835.35 11,892,793.72
(2) Decrease for loss of
control
(3) Other reasons 25,471.70 25,471.70
II. Accumulated
amortization
Year 16,861,440.77 4,163,515.94 43,200.00 10,747,059.76 20,103,235.16 51,918,451.63
(1) Provision 16,861,333.57 4,163,515.94 43,200.00 10,747,059.76 20,103,235.16 51,918,344.43
(2) Others 107.20 107.20
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Patent and know- Right to use software and
Item Land use right Trademark right Franchise rights Total
how others
Year 1,130,460.24 1,243,321.14 615,384.62 2,989,166.00
(1) Disposal or write-off 1,130,460.24 1,243,321.14 615,384.62 2,989,166.00
III. Provision for
Impairment
Year 13,304,591.99 155,930,200.00 3,305.52 169,238,097.51
(1) Provision 13,304,591.99 155,930,200.00 3,305.52 169,238,097.51
Year 2,901,082.61 2,901,082.61
(1) Disposal or write-off 2,901,082.61 2,901,082.61
IV. Book value
beginning of the year 709,117,622.78 48,213,608.00 178,800.00 170,733,722.01 59,801,772.97 988,045,525.76
Note 1: The impairment of intangible assets during the Reporting Period was due to the provision for impairment of the land use right of
Suining Konka Industrial Park and the franchise right of Yibin Kangrun.
Note 2: The decrease in land use rights due to disposal or retirement this year was mainly attributable to the sale of the land use right for
the third floor of Block A, Jingyuan Building by the Group's headquarters.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(2) Land use right with certificate of title uncompleted
The Group did not have land use rights for which no title deeds had been issued.
(3) Impairment test of intangible assets
In 2025, impairment tests were conducted on the intangible assets of Suining Konka
Industrial Park, Yibin Kangrun Medical, etc.. Their recoverable amounts were determined
based on the present value of estimated future cash flows, and a total asset impairment
loss of RMB 169,238,097.51 was recognized.
Item Book value Recoverable amount Impairment Amount
Land use right of the FPC plant at
Suining Konka Industrial Park 5,429,547.08 2,523,060.30 2,906,486.78
Land use right of the sewage
treatment plant at Suining Konka 16,978,563.97 9,438,484.97 7,540,079.00
Industrial Park
Franchise right of Yibin Kangrun
Medical 160,349,282.90 4,419,066.57 155,930,200.00
Total 182,757,393.95 16,380,611.84 166,376,765.78
(Continued)
Key parameters Basis for Determination of Key
Years of Key Parameters in
Item for the forecast Parameters in the Stabilization
Forecast Period Stabilization Phase
period Period
during the growth period based on the
industry survey and the lease
contracts signed by the principal and
the stabilization period
the evaluated entity for self-operated
remains constant based on
Land use industrial parks; 2. The appraisers'
Pre-tax discount the estimated growth rate in
right of the comprehensive analysis and
From 2026 to rate: 5.95%; the growth period; 2. The
FPC plant at determination of the lease vacancy
Suining rate in the stabilization period based
on January 12, on projected stabilization period is based
Konka on the investigation and
Industrial understanding of the leasing and
expenses, etc. administrative expenses
Park actual use of similar properties within
remain constant with
the area of the evaluated target; and
reference to the Company's
overall budget management.
entity's comprehensive budget
management data and other
materials.
sewage treatment plant with
Land use
the capacity of daily average
right of the 1. Pollutant Discharge Permit; 2. The
Pre-tax discount of 3,000 cubic meters of
sewage Entrusted Operation Contract signed
From 2026 to rate: 8.61%; sewage from the self-owned
treatment by the property rights holder and the
plant at operating unit for Section I of Phase II
on May 17, on projected Assumption that the
Suining of the PCB Base Industrial
Konka Wastewater Treatment Plant (Konka
expenses, etc. obtained for Section I of
Industrial Industrial Sewage Plant).
Phase II of the PCB Base
Park
Industrial Wastewater
Treatment Plant (Konka
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Key parameters Basis for Determination of Key
Years of Key Parameters in
Item for the forecast Parameters in the Stabilization
Forecast Period Stabilization Phase
period Period
Industrial Sewage Plant)
held by the property rights
holder will be renewed upon
expiration, without other
factors preventing such
renewal; 3. Assumption that
the Entrusted Operation
Contract signed by the
property rights holder and
the operating unit for
Section I of Phase II of the
PCB Base Industrial
Wastewater Treatment Plant
(Konka Industrial Sewage
Plant) will continue to sign
subsequent annual
entrusted operation service
matters according to the
original contract at the end
of the agreed operation
period.
The Concession Agreement for the
Centralized Treatment Project of
Medical Wastes in Gao County, Yibin
City, the Circular of Yibin
Development and Reform
Commission, Yibin Health
Commission and Yibin Ecology and
Pre-tax discount Environment Bureau on Defining the
Franchise From 2026 to rate: 6.87%; Pre-tax discount rate: Charging Standards for Medical
right of Yibin 2040 (expiring calculated based 6.87%; calculated based on Waste Disposal, the Circular of Yibin
Kangrun on October 31, on projected projected revenue, costs, Development and Reform
Medical 2040) revenue, costs, expenses, etc. Commission, Yibin Health
expenses, etc. Commission and Yibin Ecology and
Environment Bureau on Continuing to
Extend the Trial Period of the
Charging Standards for Medical
Waste Disposal (YFDRF [2026] No.
Plan for Population Development in
Yibin City.
Total — — — —
(4) Significant intangible assets
Item Remaining amortization period
Ending book value
(year)
Land use right of Dongguan Konka 177,693,814.67 43.67
Land use right of Shaanxi Konka Intelligent 109,657,495.91 45.58
Land use right of Frestec Smart Home 86,406,223.51 44.75
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Remaining amortization period
Ending book value
(year)
Total 373,757,534.09 —
(5) Intangible assets with restricted ownership or use right
Item Ending book value Reason for restriction
Land use right of Dongguan Konka 177,693,814.67 Mortgaged for loan
Land use right of Shaanxi Konka
Intelligent
Land use right of Frestec Refrigeration 59,941,753.88 Mortgaged for loan
Land use right of Anhui Konka 51,473,396.00 Mortgaged for loan
Land use right of Chongqing Konka 42,632,871.92 Mortgaged for loan
Land use right of Anhui Tongchuang 16,477,106.80 Mortgaged for loan
Land use right of Jiangsu Konka
Intelligent
Land use right of Xingda Hongye 12,176,062.85 Mortgaged for loan
Land use right of Konka Group in
Guangming
Total 486,364,529.83
(1) Original book value of goodwill
Increase in the Decrease in the
current year current year
Formed
Investee Beginning balance through Ending balance
Dispos
business Others Others
al
combinatio
ns
Jiangxi Konka 340,111,933.01 340,111,933.01
Xingda Hongye 44,156,682.25 44,156,682.25
Total 384,268,615.26 384,268,615.26
(2) Provision for impairment of goodwill
Decrease in the
Increase in the current year
current year
Investee Beginning balance Ending balance
Dispos
Provision Others Others
al
Jiangxi Konka 340,111,933.01 340,111,933.01
Xingda
Hongye
Total 362,071,880.15 22,196,735.11 384,268,615.26
(3) Relevant information on the asset group or portfolio of asset groups of the
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
goodwill belongs to
Composition and basis of the asset group or combination Whether consistent
Name
of asset groups with previous years
It consists of all operating tangible assets and recognizable
intangible assets related to goodwill from the corresponding
subsidiary's main business as reflected in its balance sheet
Xingda Hongye asset group (excluding working capital and non-operating assets), based Yes
on whether the main cash inflows generated by the asset
group are independent from those generated by other assets
or asset groups.
(4) Specific determination method of recoverable amount
The Company's management performed an impairment test of goodwill at the end of the
year and recognized Xingda Hongye as a whole as a single asset group, which is
consistent with prior years.
Future cash flows are determined based on the financial budget for 2026 to 2030
approved by management, and a discount rate of 11.81% is used. The cash flows of
Xingda Hongye for periods over 5 years are calculated based on a growth rate of 0%. The
Company engaged an appraisal institution, Shenzhen Pengxin Asset Appraisal Land and
Real Estate Appraisal Co., Ltd., to evaluate the asset group of Xingda Hongye containing
goodwill using the income approach, and took the present value of the estimated future
cash flows of the assets in the asset group as its recoverable amount. On April 23, 2026, it
issued the Recoverable Amount of the Asset Group Containing Goodwill Formed by the
Merger and Acquisition of Guangdong Xingda Hongye Electronic Co., Ltd. in Relation to
the Goodwill Impairment Test to be Conducted by Konka Group Co., Ltd. (PXZPBZ [2026]
No. S0276), with December 31, 2025 as the valuation reference date. The present value of
the asset group of Xingda Hongye on the valuation reference date was RMB 1,61,140,000.
The book value of the asset group adjusted by fair value (including overall goodwill) was
RMB 205,988,400, of which the book value of goodwill (including minority shareholders)
was RMB 43,523,000. The recoverable amount of the asset group is less than the book
value of the asset group including goodwill. Therefore, a goodwill impairment of RMB
Xingda Hongye.
Other decreases
Beginning Increase in the Amortization in
Item in the current Ending balance
balance current year the current year
year
Decoration
expenses 296,854,146.58 6,755,139.70 60,262,379.95 1,145,902.08 242,201,004.25
Shop
expense 30,536,411.17 29,463,550.58 43,464,650.78 16,535,310.97
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Other decreases
Beginning Increase in the Amortization in
Item in the current Ending balance
balance current year the current year
year
Others 204,790,603.88 66,031,329.47 72,234,790.80 3,361,340.08 195,225,802.47
Total 532,181,161.63 102,250,019.75 175,961,821.53 4,507,242.16 453,962,117.69
(1) Deferred tax assets without offset
Ending balance Beginning balance
Item Deductible Deductible
Deferred tax
temporary temporary Deferred tax assets
assets
differences differences
Deductible losses 115,441,836.02 24,185,449.41 4,072,599,866.74 821,192,030.16
Provision for asset
impairment 33,348,876.81 7,518,088.66 1,711,958,350.44 383,396,704.79
Deferred income 126,029,904.75 26,299,979.55 165,698,149.55 36,951,815.16
Accrued expenses 79,260.20 19,815.05 154,175,886.01 30,405,673.44
Unrealized internal
transaction profits 23,159,179.99 5,789,795.00 21,418,121.43 5,354,530.36
Lease liabilities 128,733,917.69 31,923,273.77 190,036,774.82 46,680,049.35
Others 47,323,319.31 11,257,154.20 303,824,133.13 68,258,498.61
Total 474,116,294.77 106,993,555.63 6,619,711,282.12 1,392,239,301.87
(2) Deferred tax liabilities without offset
Ending balance Beginning balance
Item Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Asset revaluation
appreciation from a
business combination 131,234,455.38 28,976,378.21 148,603,098.25 32,684,086.93
not under common
control
Prepaid interest 16,906,513.97 4,226,628.50 21,809,373.23 5,452,343.31
Accelerated
depreciation of fixed 2,198,376.27 443,840.17
assets
Financial assets
measured at fair value
through current 165,075,229.25 41,268,807.31 164,553,726.22 41,138,431.56
gains/losses
Right-of-Use Assets 125,148,918.49 31,020,361.63 177,009,862.45 43,672,811.85
Others 53,694,103.36 8,982,879.15 57,798,900.95 9,907,661.66
Total 492,059,220.45 114,475,054.80 571,973,337.37 133,299,175.48
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(3) Details of unconfirmed deferred tax assets
Item Ending balance Beginning balance
Deductible losses 10,631,764,118.90 5,076,924,357.43
Deductible temporary differences 14,733,642,383.21 4,057,061,699.25
Total 25,365,406,502.11 9,133,986,056.68
(4) Deductible losses from unrecognized deferred tax assets will be expired in the
following years
Year Ending balance Beginning balance Remarks
Total 10,631,764,118.90 5,076,924,357.43 —
Ending balance
Item Provision for
Balance Book value
impairment
Prepayment for land purchase 1,029,457,502.92 517,841,855.90 511,615,647.02
Prepayment for construction,
equipment and other long-term 89,390,490.57 89,390,490.57
assets
Total 1,118,847,993.49 517,841,855.90 601,006,137.59
(Continued)
Beginning balance
Item Provision for
Balance Book value
impairment
Prepayment for land purchase 1,029,457,502.92 1,029,457,502.92
Prepayment for construction,
equipment and other long-term 119,220,467.55 119,220,467.55
assets
Total 1,148,677,970.47 1,148,677,970.47
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
End of the year
Item
Balance Book value Type of restriction Restriction details
Among them, RMB 525,901,180.93
is margin deposits which are
pledged for borrowings or issuing
bank acceptance bills; RMB
Margin, time 612,670,635.63 represents time
Monetary funds 1,293,472,374.79 1,293,472,374.79 deposits, etc. deposits that are not available for
early withdrawal and are pledged as
collateral for borrowings; RMB
other reasons.
Accounts
receivable 1,479,824.68 1,448,244.31 Pledge Pledge loan
Inventories 213,889,093.11 161,827,378.00 Mortgage Mortgaged for loan
Investment
properties 789,216,793.66 445,326,656.45 Mortgage Mortgaged for loan
Mortgage for finance lease,
Fixed assets 2,159,388,777.59 1,619,724,502.81 Mortgage mortgage loans, and former
shareholder guarantee
Intangible
assets 567,108,433.14 486,364,529.83 Mortgage Mortgaged for loan
Total 5,024,555,296.97 4,008,163,686.19 — —
(Continued)
Beginning
Item Type of
Balance Book value Restriction details
restriction
Among them, RMB 556,608,881.87 is
margin deposits which are pledged for
borrowings or issuing bank
acceptance bills; RMB
Time deposits, 567,478,893.23 represents time
Monetary funds 1,332,589,771.28 1,332,589,771.28 margins, etc. deposits that are not available for
early withdrawal and are pledged as
collateral for borrowings; RMB
reasons.
Accounts
receivable 1,837,337.71 1,798,852.71 Pledge Pledge loan
Notes Pledged for the issuance of bank
receivable 15,900,000.00 15,900,000.00 Pledge acceptance bills
Inventories 383,413,182.26 379,790,291.96 Mortgage Mortgaged for loan
Investment
properties 790,608,780.11 712,454,010.27 Mortgage Mortgaged for loan
Mortgage for finance lease, mortgage
Fixed assets 1,832,372,199.20 1,551,889,522.63 Mortgage
loans, and former shareholder
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Beginning
Item Type of
Balance Book value Restriction details
restriction
guarantee
Intangible Mortgage for finance lease and
assets 664,764,256.55 587,351,084.33 Mortgage mortgage loans
Total 5,021,485,527.11 4,581,773,533.18 — —
(1) Classification of short-term borrowings
Type of borrowings Ending balance Beginning balance
Credit loan 3,736,619,333.91 4,709,049,751.78
Guaranteed loan 449,087,810.41 629,950,527.05
Mortgaged for loan 390,208,408.34 402,171,189.43
Total 4,575,915,552.66 5,741,171,468.26
(2) Outstanding short-term borrowings overdue
There were no outstanding short-term borrowings overdue at the end of the current year.
Type of note Ending balance Beginning balance
Bank acceptance bills 653,949,070.29 850,916,858.18
Commercial acceptance bills 289,868,697.62 299,393,998.52
Total 943,817,767.91 1,150,310,856.70
Note: There were no notes payable that were due but unpaid at the end of the current year.
(1) Presentation of accounts payable
Item Ending balance Beginning balance
Within 1 year 1,392,600,370.15 2,295,798,887.75
Over 3 years 202,058,868.16 182,539,343.79
Total 1,977,736,371.29 2,774,615,788.24
(2) Significant accounts payable aging more than one year or overdue
Reason for Non-repayment or
Unit Ending balance
Carry-over
Company A 111,159,114.76 Pending Settlement
Final payment for the project not
Company B 77,027,260.07 yet settled
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Reason for Non-repayment or
Unit Ending balance
Carry-over
Final payment for the project not
Company C 42,192,153.10 yet settled
Company D 34,189,624.82 Pending Settlement
Company E 30,327,400.00 In Litigation
Company F 30,159,458.13 Pending Settlement
Company G 25,779,987.00 Pending Settlement
Company H 10,600,000.00 Pending Settlement
Total 361,434,997.88
(3) Whether there are any overdue payments to small and medium-sized enterprises
(applicable to SZSE)
Number of Overdue Contracts 325
Amount of Overdue Contracts 703,656,073.35
Overdue and Unpaid Amount 253,541,028.01
Item Ending balance Beginning balance
Interest Payable
Dividends Payable
Other payables 6,565,100,788.16 3,502,796,381.63
Total 6,565,100,788.16 3,502,796,381.63
(1) Other payables presented based on the nature of the funds
Nature of funds Ending balance Beginning balance
Expenses Payable 792,764,274.26 775,131,170.51
Security Deposit, Down Payment, and
Deposit 272,858,608.90 283,501,144.00
Trading Funds 1,163,502,426.04 489,457,474.93
Advance Payment 3,860,617.67 7,758,315.35
Related Party Borrowing 2,395,873,661.72 221,405,227.76
Equity Payable 1,870,346,451.75 1,615,155,483.71
Others 65,894,747.82 110,387,565.37
Total 6,565,100,788.16 3,502,796,381.63
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(2) Significant other payables with an age of more than one year or overdue
Reason for Non-repayment or
Unit Ending balance
Carry-over
Equity repurchase amount and
Company I 1,469,134,969.86 interest arising from the Ypfun IPO
VAM agreement
Company J 235,788,807.29 Accrue patent fees
Company K 66,082,529.10 Pending Settlement
Company L 65,077,215.48 Unsettled construction payments
Company M 30,000,000.00 Performance bond
Company N 20,301,936.47 Pending Settlement
Company O 18,000,000.00 Pending Settlement
Company P 15,646,109.30 Unsettled rent
Compensation for installment
Company Q 14,925,006.90 payments
Compensation for installment
Company R 14,279,584.10 payments
Company S 13,618,181.08 Payment conditions not met
Company T 12,780,275.13 Pending Settlement
Total 1,975,634,614.71 -
Category Ending balance Beginning balance
Rent 3,426,361.65 3,481,262.87
Total 3,426,361.65 3,481,262.87
(1) Contract liabilities
Item Ending balance Beginning balance
Sales advances received 256,506,499.39 623,555,669.97
Total 256,506,499.39 623,555,669.97
Remarks: Contract liabilities over one year are detailed in "VI.41.Other non-current
liabilities" in this note.
(2) Significant contract liabilities with an age of more than one year
There were no significant contract liabilities with an age of more than one year in the
current year.
(3) Significant changes in book value in the current year
The significant decrease in the balance of contract liabilities compared with the end of the
previous year was mainly due to the fact that the advance payments for pre-sale
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
properties of Nantong Konghai and the payment for goods early collected by Hongkong
Konka met the revenue recognition conditions in the current period and were carried
forward to operating revenue.
(1) Categories of employee benefits payable
Beginning Increase in the Decrease in the
Item Ending balance
balance current year current year
Short-term
remuneration 237,237,008.22 1,228,905,430.20 1,253,392,987.78 212,749,450.64
Post-employment
benefits - defined 1,032,772.61 119,675,904.48 119,573,826.35 1,134,850.74
contribution plans
Dismissal benefits 5,462,068.95 19,267,545.40 15,438,402.63 9,291,211.72
Total 243,731,849.78 1,367,848,880.08 1,388,405,216.76 223,175,513.10
(2) Short-term remuneration
Beginning Increase in the Decrease in the
Item Ending balance
balance current year current year
Salaries, bonuses,
allowances and subsidies 230,731,246.88 1,073,263,791.23 1,097,064,848.08 206,930,190.03
Employee welfare
expenses 3,334,946.15 47,356,378.18 48,119,491.70 2,571,832.63
Social insurance
premiums 533,555.71 50,622,958.45 50,622,051.59 534,462.57
Including: medical
insurance premiums 387,627.84 44,641,995.31 44,634,078.56 395,544.59
Work injury insurance
premiums 77,640.15 4,453,636.93 4,459,752.19 71,524.89
Maternity insurance
premiums 68,287.72 1,527,326.21 1,528,220.84 67,393.09
Housing fund 507,627.65 44,148,060.73 44,107,422.86 548,265.52
Labour union fees and
employee education fees 1,563,130.18 11,097,538.02 10,571,609.08 2,089,059.12
Others 566,501.65 2,416,703.59 2,907,564.47 75,640.77
Total 237,237,008.22 1,228,905,430.20 1,253,392,987.78 212,749,450.64
(3) Defined contribution plans
Increase in the Decrease in the
Item Beginning balance Ending balance
current year current year
Basic pension
insurance 904,488.43 115,008,760.46 114,840,773.11 1,072,475.78
Unemployment
insurance premiums 128,284.18 4,667,144.02 4,733,053.24 62,374.96
Total 1,032,772.61 119,675,904.48 119,573,826.35 1,134,850.74
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Ending balance Beginning balance
VAT 41,389,783.89 18,304,436.27
Property tax 7,873,067.23 11,724,042.19
Stamp duty 5,189,868.71 8,598,131.85
Land value increment tax 4,541,408.65 643,627.96
Land use tax 2,955,305.79 3,640,999.21
Enterprise income tax 2,902,794.24 46,039,928.61
Personal income tax 2,404,290.78 2,590,216.18
Tariff 1,544,659.31 1,584,862.54
City construction and maintenance tax 1,090,729.63 455,815.56
Education fees and local education
surcharge 804,441.46 384,461.10
Others 579,905.73 646,189.11
Total 71,276,255.42 94,612,710.58
Item Ending balance Beginning balance
Bonds payable due within one year 1,997,255,226.21 2,510,473,199.20
Long-term borrowings due within one year 1,610,967,861.49 4,099,941,220.89
Lease liabilities due within one year 42,617,527.51 44,667,151.05
Long-term payables due within one year 452,824.05
Total 1,997,255,226.21 2,510,473,199.20
Item Ending balance Beginning balance
Input tax to be carried forward 9,709,568.79 39,793,570.78
Refunds payable 10,947,147.43 17,262,340.52
Accounts payable paid by endorsement of
outstanding notes at the end of the reporting period 25,720,556.07 12,820,620.61
Total 46,377,272.29 69,876,531.91
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Type of borrowings Ending balance Beginning balance
Guaranteed loan 1,255,126,167.17 3,426,786,189.06
Credit loan 5,466,646,895.34 2,407,276,815.65
Entrusted borrowings 2,125,382,964.61
Mortgaged for loan 1,044,296,964.74 1,271,960,335.66
Pledge loan 382,824,571.78 399,184,717.84
Less: Amount due within one year
(see Note VI.32) 1,610,967,861.49 4,099,941,220.89
Total 6,537,926,737.54 5,530,649,801.93
(1) Categories of bonds payable
Item Ending balance Beginning balance
Corporate bonds 3,593,930,102.58 4,805,666,700.25
Less: Bonds payable due within one
year (see Note VI.32) 1,997,255,226.21 2,510,473,199.20
Total 1,596,674,876.37 2,295,193,501.05
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(2) Changes in bonds payable
Par value
Issue Bond Issuance in the Accrue interest by Amortization of Repayment in the Whether
Bond name Total par value Interest Issue amount Beginning balance Ending balance
Date maturity current year par value premium/discount current year Default
rate
(note ①)
(note ②)
(note ③)
(note ④)
(note ⑤)
(Note ⑥)
(Note ⑦)
(Note ⑧)
Total 5,900,000,000.00 — — — 5,880,400,000.00 4,805,666,700.25 1,196,160,000.00 158,880,999.88 4,902,402.45 2,571,680,000.00 3,593,930,102.58 —
Note ①: On July 14, 2022, the Company issued RMB1.2 billion of public placement corporate bonds with a duration of three years, an annual interest rate of 3.23%, and a maturity date of July 14, 2025.
Note ②: On September 8, 2022, the Company issued RMB600 million of private placement corporate bonds with a duration of three years, an annual interest rate of 3.30%, and a maturity date of
September 8, 2025.
Note ③: On October 18, 2022, the Company issued RMB600 million of private placement corporate bonds with a duration of three years, an annual interest rate of 3.50%, and a maturity date of October
Note ④: On January 29, 2024, the Company issued RMB 1.5 billion of private placement corporate bonds with a duration of three years (with an issuer's option to adjust the coupon rate and an investor's
put option at the end of the second year), an annual interest rate of 4.00%, and a maturity date of January 29, 2027.
Note ⑤: On March 18, 2024, the Company issued RMB 400 million of private placement corporate bonds with a duration of three years (with an issuer's option to adjust the coupon rate and an investor's
put option at the end of the second year), an annual interest rate of 4.00%, and a maturity date of March 18, 2027.
Note ⑥: On March 18, 2024, the Company issued RMB400 million of private placement corporate bonds with a duration of three years, an annual interest rate of 4.03%, and a maturity date of March 18,
Note ⑦: On June 23, 2025, the Company issued RMB 410 million of private placement corporate bonds with a duration of three years (with an issuer's option to adjust the coupon rate and an investor's
put option at the end of the second year), an annual interest rate of 3.50%, and a maturity date of June 23, 2028.
Note ⑧: On July 4, 2025, the Company issued RMB 790 million of private placement corporate bonds with a duration of three years (with an issuer's option to adjust the coupon rate and an investor's put
option at the end of the second year), an annual interest rate of 2.80%, and a maturity date of July 4, 2028.
Note ⑨: China Resources Inc. provides a full, unconditional, and irrevocable joint and several liability guarantee for the due payment of these public and private placement corporate bonds.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Ending balance Beginning balance
Lease liabilities 139,476,496.26 191,228,739.57
Less: Lease liabilities due within one year (see
Note VI.32) 42,617,527.51 44,667,151.05
Total 96,858,968.75 146,561,588.52
Item Ending balance Beginning balance
Payable finance lease payments 2,113,713.86 6,314,362.65
Less: Unrecognized financing expenses 80,486.84 356,990.36
Amount above due within one year (see Note VI.32) 452,824.05
Total 2,033,227.02 5,504,548.24
Item Ending balance Beginning balance
Post-employment benefits - net liabilities of defined
benefit plans 4,519,491.87 4,608,659.47
Total 4,519,491.87 4,608,659.47
Item Ending balance Beginning balance Reason for formation
Performance compensation, or
contingent consideration 346,222,251.09 346,222,251.09
After-sales services for
Product quality assurance 57,824,544.20 80,603,137.10 household appliances
Pending litigation 446,591,769.85 206,591.51
Disposal expenses 2,084,301.83 1,401,752.49
Total 852,722,866.97 428,433,732.19 —
(1) Categories of deferred income
Increase in the Decrease in the Reason for
Item Beginning balance Ending balance
current year current year formation
Government Related to
grants 393,437,007.37 72,028,772.87 57,289,984.73 408,175,795.51 assets/income
Total 393,437,007.37 72,028,772.87 57,289,984.73 408,175,795.51 —
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(2) Government subsidy items
Amount Amount Amount of
Subsidies
recognized as recognized as cost offset Related to
Beginning increased in Others End of the year
Government Grant Projects non-operating other income in the assets/inco
Balance the current Change Balance
revenue in the in the current current me
year
current year year year
Plant construction subsidy for Related to
Yibin Konka Industrial Park 101,225,904.13 2,319,532.32 98,906,371.81 assets
Medical waste centralized
Related to
treatment project in Gaoxian 27,430,784.61 5,000,000.00 1,730,503.55 30,700,281.06 assets
County, Yibin City
Rewards and subsidies for
Special Project for Supporting
the Development of Advanced Related to
Manufacturing and Modern 31,510,328.22 2,458,697.27 29,051,630.95 assets
Service Industry of Henan
Frestec Smart Home
Shenzhen Industrial Investment
Related to
Project Support Program for 6,787,857.01 16,180,000.00 521,936.40 22,445,920.61 assets
Konka Group Headquarters
Industrial support funds for Related to
Suining Konka Industrial Park 19,776,548.54 239,936.88 19,536,611.66 assets
Industrial rewards and subsidies Related to
of Henan Frestec Smart Home 19,734,932.95 481,353.47 19,253,579.48 assets
Shaanxi Konka Smart's
equipment renewal supported by Related to
ultra-long-term special treasury 19,060,000.00 19,060,000.00 assets
bonds
Returned payments for land by Related to
Chongqing Konka 17,541,818.31 392,727.24 17,149,091.07 assets
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Amount Amount Amount of
Subsidies
recognized as recognized as cost offset Related to
Beginning increased in Others End of the year
Government Grant Projects non-operating other income in the assets/inco
Balance the current Change Balance
revenue in the in the current current me
year
current year year year
Plant decoration subsidy for
Related to
Yibin Konka Science and 8,635,292.92 3,000,000.00 1,863,457.86 9,771,835.06 assets
Technology Industrial Park
Related to
Other government subsidies
related to assets/income
e
Total 393,437,007.37 72,028,772.87 37,201,156.10 17,400.00 -20,071,428.63 408,175,795.51
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Ending balance Beginning balance
Contract liabilities over one year 283,739,354.36 207,378,781.21
Total 283,739,354.36 207,378,781.21
Increase/decrease (+/-) in the current year
Capital
Item Beginning balance reserves Ending balance
New Bonus
converted Others Subtotal
issues shares
into share
capital
Total shares 2,407,945,408.00 2,407,945,408.00
Outstanding financial Beginning Increase in the current year
instruments Quantity Book value Quantity Book value
Perpetual bonds 5,000,000,000.00 5,000,000,000.00
Total 5,000,000,000.00 5,000,000,000.00
(Continued)
Outstanding financial Decrease in the current year End of the year
instruments Quantity Book value Quantity Book value
Perpetual bonds 5,000,000,000.00 5,000,000,000.00
Total 5,000,000,000.00 5,000,000,000.00
Note: On December 16, 2025, the Company issued perpetual bonds to its controlling
shareholder, Panshi Runchuang (Shenzhen) Information Management Co., Ltd. According
to the relevant contract, the aforementioned perpetual bonds have no definite maturity
date, and the Company has the right to defer interest payments. At the same time, the
Company has the sole discretion to redeem the perpetual bonds and has no contractual
obligation to deliver cash or other financial assets. Therefore, they are recognized as other
equity instruments.
Increase in the Decrease in the
Item Beginning balance Ending balance
current year current year
Other capital
reserves 512,840,575.73 19,768,716.32 126,029,421.25 406,579,870.80
Total 512,840,575.73 19,768,716.32 126,029,421.25 406,579,870.80
Note: The reasons for the increase and decrease in capital reserves - other capital
reserves for the current year are as follows:
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
① The conversion of the originally listed long-term equity investment (Wuhan Tianyuan
Group Co., Ltd.) to financial assets held for trading resulted in a decrease in other capital
reserves of RMB 126,029,421.25 due to the change in accounting method;
② The equity incentives of the associate Chongqing Ypfun Technology Co., Ltd. resulted
in an increase in other capital reserves of RMB 301,193.49;
③ The deregistration of the associate E3info (Hainan) Technology Co., Ltd. resulted in an
increase of RMB 1,508,471.59 in other capital reserves;
④ The capital increase and share expansion of the associate Hefei Kangxinwei Storage
Technology Co., Ltd. by introducing strategic investors resulted in an increase of RMB
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Amount incurred in the current year
Less: Amount
Less: Amount
recognized as
recognized as
other
other
comprehensive
Beginning comprehensive Less: Attributable to End of the year
Item income in the Attributable to the
Balance Amount incurred income in the Income minority Balance
previous period parent company
before income tax previous period tax shareholders
and transferred after tax
and transferred expense after tax
to retained
to gains/losses
earnings in the
in the Reporting
Reporting
Period
Period
I. Other
comprehensive
income that cannot -6,398,878.20 -5,901,121.80 -5,901,121.80 -12,300,000.00
be reclassified to
gains/losses
Including: Changes in
fair value of other
equity instrument -6,398,878.20 -5,901,121.80 -5,901,121.80 -12,300,000.00
investments
II. Other
comprehensive
income reclassified to -2,641,412.12 26,638,229.86 13,075,019.21 13,563,210.65 10,433,607.09
gains/losses
Including: Other
comprehensive
income that can be
transferred to -2,192,546.02 1,776,376.21 1,776,376.21 -416,169.81
gains/losses under
the equity method
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Amount incurred in the current year
Less: Amount
Less: Amount
recognized as
recognized as
other
other
comprehensive
Beginning comprehensive Less: Attributable to End of the year
Item income in the Attributable to the
Balance Amount incurred income in the Income minority Balance
previous period parent company
before income tax previous period tax shareholders
and transferred after tax
and transferred expense after tax
to retained
to gains/losses
earnings in the
in the Reporting
Reporting
Period
Period
Translation
differences of foreign
currency financial -448,866.10 24,861,853.65 11,298,643.00 13,563,210.65 10,849,776.90
statements
Total of other
comprehensive -9,040,290.32 20,737,108.06 7,173,897.41 13,563,210.65 -1,866,392.91
income
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Increase in the Decrease in the
Item Beginning balance Ending balance
current year current year
Safety production
fund 11,249,678.53 7,743,491.96 1,796,025.87 17,197,144.62
Total 11,249,678.53 7,743,491.96 1,796,025.87 17,197,144.62
Decrease in
Increase in the
Item Beginning balance the current Ending balance
current year
year
Statutory surplus
reserve 1,005,961,774.19 1,005,961,774.19
Discretionary surplus
reserve 238,218,590.05 238,218,590.05
Total 1,244,180,364.24 1,244,180,364.24
Item The current year Last year
Undistributed profit at the end of last year before
adjustment -1,797,506,898.08 1,474,561,975.85
Adjustment to total undistributed profits at the beginning
of the year (+ for increase and - for decrease) -777,201,329.82 -347,232,776.81
Including: retroactive adjustment to the Accounting
Standards for Business Enterprises and relevant new
regulations
Change in accounting policies
Correction of significant prior period errors -777,201,329.82 -347,232,776.81
Changes in the scope of consolidation under common
control
Adjusted undistributed profit at the beginning of the year -2,574,708,227.90 1,127,329,199.04
Add: Net profit attributable to owners of the parent
company in the current year -12,582,399,856.80 -3,725,557,221.78
Others 23,519,794.84
Loss offset by surplus reserves
Capital reserves used to offset losses
Less: Appropriation of statutory surplus reserve
Appropriation of discretionary surplus reserve
Appropriation to general risk reserves
Ordinary share dividends payable
Ordinary share dividends transferred to capital stock
Ending balance of the current year -15,157,108,084.70 -2,574,708,227.90
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(1) Operating revenue and cost of sales
Amount incurred in the current year Amount incurred last year
Item
Income Cost Income Cost
Principal
activity 9,222,377,316.60 8,993,917,477.41 10,417,600,703.11 10,306,208,764.64
Other 613,097,599.93 436,800,440.79 697,163,266.48 555,615,226.55
Total 9,835,474,916.53 9,430,717,918.20 11,114,763,969.59 10,861,823,991.19
(2) Information on the breakdown of operating revenue and cost of sales
Amount incurred in the current year Amount incurred last year
Category of contracts Operating Operating
Cost of sales Cost of sales
Revenue Revenue
Business type
Including: Colour TV
business
White goods business 3,815,259,215.10 3,605,987,282.66 4,127,243,310.93 3,837,066,870.14
PCB business 529,852,068.40 484,651,274.02 480,868,974.92 428,530,129.53
Semiconductor and memory
chip business
Other 1,135,978,105.28 882,746,647.89 1,308,691,070.11 1,100,629,601.93
Total 9,835,474,916.53 9,430,717,918.20 11,114,763,969.59 10,861,823,991.19
Classified by operating
region
Of which: Domestic 6,753,418,875.25 6,471,030,228.87 7,903,700,862.49 7,725,612,592.83
Overseas 3,082,056,041.28 2,959,687,689.33 3,211,063,107.10 3,136,211,398.36
Total 9,835,474,916.53 9,430,717,918.20 11,114,763,969.59 10,861,823,991.19
(3) Information in relation to the transaction price apportioned to the residual
contract performance obligation
At the end of the current year, the revenue corresponding to the performance obligations
that have been signed but not yet performed or not yet fully performed is RMB
in 2026, RMB 25,750,507.96 is expected to be recognized in 2027, and RMB 9,334,488.25
is expected to be recognized in 2028 and later years.
Item Amount incurred in the current year Amount incurred last year
Property tax 45,555,795.92 46,155,747.46
Stamp duty 28,182,133.01 39,993,676.00
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Amount incurred in the current year Amount incurred last year
Land use tax 17,603,998.17 19,447,128.15
Land value increment tax 8,090,412.22 4,601,595.90
Urban maintenance and construction tax 6,194,307.57 8,067,589.84
Education surcharge 2,873,255.31 3,697,149.73
Local education surcharge 1,920,673.28 2,464,766.48
Water conservancy fund 786,979.37 925,768.34
Others 269,037.22 603,913.09
Total 111,476,592.07 125,957,334.99
Amount incurred in the current
Item Amount incurred last year
year
Employee compensation 306,011,654.51 346,592,018.83
Promotional activities expenses 90,063,910.51 142,882,509.25
Advertising expenses 76,765,634.35 107,677,304.60
Logistics expenses 55,201,268.85 69,134,847.32
Agency commissions 26,086,639.29 5,470,657.32
Travel expenses 17,341,756.89 21,923,991.20
Market service fees 16,481,201.63 10,848,646.14
Insurance expenses 10,323,067.04 10,893,622.99
Depreciation of fixed assets 9,996,730.17 5,636,281.47
Others 38,947,205.23 53,238,157.75
Total 647,219,068.47 774,298,036.87
Amount incurred in the current
Item Amount incurred last year
year
Employee compensation 276,527,007.66 314,459,207.37
Depreciation expenses 198,768,764.61 215,615,082.76
Intermediary fees 23,695,009.51 37,100,613.46
Water and electricity expenses 12,935,695.59 12,036,310.67
Travel expenses 4,568,062.61 7,023,438.59
Loss on scrapping of inventories 1,841,100.79 3,905,406.48
Others 45,835,197.23 61,807,774.13
Total 564,170,838.00 651,947,833.46
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Amount incurred in the current
Item Amount incurred last year
year
Salary 200,826,276.67 226,287,518.69
Depreciation and amortization expenses 116,768,922.25 105,315,963.39
New product trial production expense 17,187,524.66 18,169,936.41
Material expense 6,034,945.14 3,315,736.07
Patent fee 2,156,329.48 20,011,198.25
Testing expense 1,599,584.39 3,046,117.93
Others 41,532,254.37 40,259,369.60
Total 386,105,836.96 416,405,840.34
Amount incurred in the current
Item Amount incurred last year
year
Interest expense 871,624,731.68 953,199,337.05
Less: Interest income 134,366,718.80 215,619,251.81
Add: Exchange loss 45,235,956.80 -51,329,032.40
Other expenses 21,722,964.21 28,736,033.40
Total 804,216,933.89 714,987,086.24
Amount incurred in the current
Sources of other income Amount incurred last year
year
Transfer of deferred income 37,201,156.10 42,154,230.53
Tax rebates on software 14,455,781.19 4,681,629.92
Support funds 9,435,900.00 14,923,388.00
Rewards and subsidies 9,107,772.06 34,231,995.98
Subsidies for L/C exports 2,876,243.00 1,250,714.67
Tax and fee reductions 2,423,581.02 10,191,356.70
Post subsidies 1,585,184.87 1,895,971.87
Others -621,266,163.24 1,271,022.45
Total -544,180,545.00 110,600,310.12
Sources of gains from changes in the fair Amount incurred in the current
Amount incurred last year
value year
Financial assets measured at fair value
through current gains/losses -460,420,971.18 -267,484,270.45
Estimated contingent consideration -95,523,883.70
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Sources of gains from changes in the fair Amount incurred in the current
Amount incurred last year
value year
Total -460,420,971.18 -363,008,154.15
Amount incurred in the Amount incurred last
Item
current year year
Returns on long-term equity investments calculated by the
equity method -379,192,413.39 -134,541,620.49
Return on investment arising from the disposal of long-term
equity investments -60,235.73 101,946,531.33
Investment income from financial assets held for trading
during the holding period 420,553.86 4,240,444.62
Investment income from disposal of financial assets measured
at fair value with changes included in current gains/losses -1,807,577.63 -26,511,417.25
Interest income from debt investments during the holding
period 5,860,451.37 19,239,106.21
Income from the derecognition of financial assets at amortized
cost -3,484,892.68 -4,519,585.64
Gains from debt restructuring -459,737.22
Conversion of long-term equity investments accounted for by
the equity method to financial assets 655,666,680.89
Gains from remeasurement of residual equity at fair value
after losing control
Others
Total 277,402,566.69 -40,606,278.44
Amount incurred in the current
Item Amount incurred last year
year
Bad debt loss of notes receivable -97,525.15 -130,021.70
Bad debt loss of accounts receivable -53,871,543.82 -125,736,732.85
Bad debt loss of other accounts receivable -1,466,630,164.43 -280,100,956.11
Total -1,520,599,233.40 -405,967,710.66
Amount incurred in the current
Item Amount incurred last year
year
Impairment loss of long-term equity
investments -3,175,620,107.46 -516,085,087.12
Inventory depreciation loss and contract
fulfillment cost impairment loss -749,200,712.14 -445,305,312.35
Provision for impairment of investment
property -643,642,921.78
Provision for impairment of other non-
current assets -517,841,855.90
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Amount incurred in the current
Item Amount incurred last year
year
Impairment loss of construction in progress -375,338,959.82 -17,000,002.50
Impairment loss on fixed assets -404,775,609.37 -20,834,518.11
Impairment loss on intangible assets -169,238,097.51
Provision for impairment of other current
assets -118,264,443.38
Provision for goodwill impairment -22,196,735.11
Contract asset impairment loss -64,865.73 -191,314.13
Total -6,176,184,308.20 -999,416,234.21
The current year Last year
Item
Amount Amount
Gains on disposal of non-current assets 24,500,775.05 13,572,230.63
Including: gains on disposal of non-current assets not classified as
held for sale 24,500,775.05 13,572,230.63
Including: gains on disposal of fixed assets 23,893,960.39 12,323,105.39
Gains on disposal of intangible assets 660,377.36
Gains/losses on disposal of right-of-use assets 606,814.66 537,251.48
Others 51,496.40
Total 24,500,775.05 13,572,230.63
Amount recorded into
Amount incurred in the Amount incurred last the non-recurring
Item
current year year gains/losses of the
current year
Income from compensation, fines and
liquidated damages 9,290,317.11 19,309,630.18 9,290,317.11
Write-off of current accounts 8,682,318.14 12,321,231.59 8,682,318.14
Non-current assets damage and
retirement gains 271,611.84 7,381.77 271,611.84
Others 4,809,048.67 4,863,863.75 4,809,048.67
Total 23,053,295.76 36,502,107.29 23,053,295.76
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Amount recorded into
Amount of the current the non-recurring
Item Amount of last year
year gains/losses of the
current year
Estimated guarantee losses 396,756,575.84 396,756,575.84
Compensation expenses 11,997,239.95 5,087,299.42 11,997,239.95
Losses on damage and scrapping of
non-current assets 2,942,707.01 14,433,649.96 2,942,707.01
Performance compensation 69,755,761.30
Others 47,816,349.69 76,298,404.02 47,816,349.69
Total 459,512,872.49 165,575,114.70 459,512,872.49
(1) Income tax expense
Amount incurred in the
Item Amount incurred last year
current year
Income tax expenses in the current year 26,859,038.83 86,944,638.50
Deferred income tax expenses 1,266,380,917.19 -17,392,309.50
Total 1,293,239,956.02 69,552,329.00
(2) Adjustment process of accounting profits and income tax expenses
Item Amount incurred in the current year
Total consolidated profit in the current year -10,944,373,563.83
Income tax expenses calculated at legal/applicable tax rate -2,736,093,390.96
Impact of different tax rates applied by subsidiaries 318,300,135.41
Impact of adjustment of prior period income tax -20,610.95
Impact of non-taxable income 9,977,787.88
Impact of non-deductible costs, expenses, and losses 4,052,515.16
Impact of using deductible losses on the deferred tax assets not recognized
previously
Impact of deductible temporary differences or deductible losses of deferred
tax assets not recognized in the current year 3,728,909,448.52
Changes in the opening balance of deferred tax assets/liabilities due to
adjustment of tax rate
Others -31,885,929.04
Income tax expense 1,293,239,956.02
For details, please refer to Note VI.45 “Other comprehensive income” of these notes.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(1) Cash related to operating activities
Amount incurred in the
Item Amount incurred last year
current year
Intercompany payments 104,928,846.18 99,175,088.89
Income from government grants 104,405,766.26 91,084,949.55
Deposits and security deposits received 87,452,563.95 123,926,037.77
Interest income from bank deposits 24,204,831.04 66,117,530.26
Compensation and penalty income 7,937,687.17 20,552,157.49
Others 46,197,994.79 63,901,195.67
Total 375,127,689.39 464,756,959.63
Amount incurred in the
Item Amount incurred last year
current year
Cash expenses 473,451,116.19 803,310,338.17
Deposit and margin 204,978,244.69 120,837,849.81
Bank service charges 2,746,666.56 4,474,661.97
Payments made on behalf 28,616.88 397,101.66
Others 73,385,553.13 72,308,452.14
Total 754,590,197.45 1,001,328,403.75
(2) Cash related to investing activities
Amount incurred in the
Item Amount incurred last year
current year
Recovery of interfund lending 6,615,000.00 10,535,206.45
Others 31,007,486.48 176,130,622.69
Total 37,622,486.48 186,665,829.14
Amount incurred in the
Item Amount incurred last year
current year
Payment of interfund lending 100,000,000.00
Cash paid for disposal of subsidiaries 3,969,969.81
Others 21,481,193.45 34,327,401.00
Total 25,451,163.26 134,327,401.00
(3) Cash related to financing activities
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Amount incurred in the
Item Amount incurred last year
current year
Receipt of interfund lending 3,174,680,000.00
Recovery of pledged margin deposits 2,064,913,851.73 898,936,642.13
Others 162,919.46
Total 5,239,756,771.19 898,936,642.13
Amount incurred in the
Item Amount incurred last year
current year
Margin deposits for pledge 1,934,866,839.47 1,608,682,236.20
Repayment of interfund lending 1,023,259,856.14 18,099,962.83
Cash paid for leases 43,948,994.20 29,886,200.09
Financing expenses 18,890,693.71 26,001,127.56
Others 3,423,714.89 4,300,049.48
Total 3,024,390,098.41 1,686,969,576.16
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Increase in the current year Decrease in the current year
Item Beginning balance Ending balance
Cash changes Non-cash changes Cash changes Non-cash changes
Non-current liabilities
maturing within one 6,655,534,395.19 3,633,511,824.98 6,613,744,304.62 24,461,300.34 3,650,840,615.21
year
Short-term borrowings 5,741,171,468.26 5,863,443,113.20 176,137,247.72 7,204,836,276.52 4,575,915,552.66
Long-term borrowings 5,530,649,801.93 5,416,321,326.09 295,276,722.54 3,140,954,568.38 1,563,366,544.64 6,537,926,737.54
Bonds payable 2,295,193,501.05 1,196,160,000.00 163,806,043.84 61,229,442.31 1,997,255,226.21 1,596,674,876.37
Lease liabilities 146,561,588.52 19,596,281.76 5,852,280.02 63,446,621.51 96,858,968.75
Long-term payables 5,504,548.24 729,327.57 3,965,960.17 234,688.62 2,033,227.02
Total 20,374,615,303.19 12,475,924,439.29 4,289,057,448.41 17,030,582,832.02 3,648,764,381.32 16,460,249,977.55
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(4) Notes to cash flows expressed in net amount
No cash flows were presented on a net basis in the current year.
(5) Significant activities and financial impacts that do not involve current cash
receipts and payments, but affect the financial position of the enterprise or may
affect the cash flows in the future
Item Amount incurred in the current year
Payment for materials made by endorsement of notes
receivable 1,556,029,208.45
Acquisition of long-term assets by endorsement of notes
receivable 84,064,414.22
Other payments made by endorsement of notes receivable 177,588,227.57
Total 1,817,681,850.24
(1) Supplementary information to the statement of cash flows
Item Amount of the current year Amount of last year
— —
operating activities:
Net Profit -12,237,613,519.85 -4,314,107,326.62
Add: Provision for asset impairment 6,176,184,308.20 999,416,234.21
Credit impairment loss 1,520,599,233.40 405,967,710.66
Depreciation of fixed assets, depletion of oil and
gas assets, depreciation of productive biological 444,245,049.90 460,489,835.67
assets
Depreciation of right-of-use assets 51,319,518.68 55,180,501.65
Amortization of intangible assets 51,918,344.43 53,255,782.40
Amortization of long-term prepaid expenses 175,961,821.53 140,922,010.97
Losses on disposal of fixed assets, intangible
assets and other long-lived assets ("-" indicates -24,500,775.05 -13,572,230.63
income)
Losses on scrap of fixed assets ("-" indicates
income) 2,671,095.17 14,426,268.19
Losses on changes in fair value ("-" indicates
income) 460,420,971.18 363,008,154.15
Finance costs ("-" indicates income) 806,202,443.42 884,664,729.30
Investment loss ("-" indicates income) -277,402,566.69 40,606,278.44
Decrease in deferred tax assets ("-" indicates
increase) 1,285,245,746.24 34,334,680.29
Increase in deferred income tax liabilities ("-"
indicates decrease) -18,824,120.68 -51,726,989.79
Decrease in inventories ("-" indicates increase) 289,318,178.99 -123,830,950.55
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Amount of the current year Amount of last year
Decrease in accounts receivable generated from
operating activities ("-" indicates increase) 87,769,220.84 574,731,714.03
Increase in accounts payable used in operating
activities ("-" indicates decrease) -367,599,629.08 692,276,671.15
Others -36,915,441.82 -42,154,230.53
Net cash generated from/used in operating activities -1,611,000,121.19 173,888,842.99
activities not involving cash:
Conversion of liabilities into capital
Convertible corporate bonds due within one year
Fixed assets acquired under finance leases
Balance of cash at the end of the year 5,020,469,510.26 2,783,177,476.45
Less: Beginning balance of cash 2,783,177,476.45 5,674,784,349.55
Add: Ending balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase in cash and cash equivalents 2,237,292,033.81 -2,891,606,873.10
(2) Supplier financing arrangements
①Terms and conditions of supplier finance arrangements
The Group entered into agreements with banks and financial institutions, under which
qualified suppliers approved by the Group can assign their eligible accounts receivable
from the Group to the banks. The Group fulfills its unconditional payment obligation when
the payables become due.
② Balance Sheet Presentation Items and Related Information (Unit: RMB 10,000)
Line items Ending balance
Accounts payable 75.35
Of which: Amount received by suppliers 75.35
Total 75.35
③ Maturity date ranges of payments
Line items Ending
Liabilities under the arrangements 360-365 days after the date of issuance
Comparable accounts payable not under the arrangements -
④ Changes in the current period not involving cash receipts and payments
The changes in the Company's aforementioned financial liabilities were not affected by
business combinations or exchange rate fluctuations.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(3) Net cash paid for the acquisition of subsidiaries in the current year
There was no net cash paid for the acquisition of subsidiaries in the current year.
(4) Net cash received from the disposal of subsidiaries in the current year
There was no net cash received from disposal of subsidiaries in the current year.
(5) Breakdowns of cash and cash equivalents
Item Ending balance Beginning balance
Cash 5,020,469,510.26 2,783,177,476.45
Including: Cash on hand 208.19
Bank deposits available for payment at any time 5,015,971,489.92 2,779,974,224.23
Other monetary funds available for payment at any time 4,498,020.34 3,203,044.03
Balance of cash and cash equivalents at the end of the
year 5,020,469,510.26 2,783,177,476.45
(6) Limited use but still presented as cash and cash equivalents
Reasons for classifying the
Amount of the current
Item Amount of last year funds as cash and cash
year
equivalents
The proceeds can be used at
any time to make payments,
Project loan proceeds 19,476,498.98 38,316,138.97 and such payments can only be
made for projects
The proceeds can be used at
any time to make payments,
Project pre-sale funds 17,245,802.22 24,054,347.29 and such payments can only be
made for projects
Total 36,722,301.20 62,370,486.26 —
(7) Monetary funds not classified as cash and cash equivalents
Reasons for not
classifying the funds as
Item Amount of the current year Amount of last year
cash and cash
equivalents
Pledged as collateral for
Time deposits 612,670,635.63 567,478,893.23 borrowings
Pledged for borrowings or
Deposit margin 525,901,180.93 556,608,881.87 deposit for issuance of
bank acceptance bills
Not readily available for
Frozen funds 154,900,558.23 208,501,996.18 payment
Total 1,293,472,374.79 1,332,589,771.28 —
No "other" amount in the closing amount of last year was adjusted in the current year.
(1) Foreign currency monetary items
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Year-end foreign currency Year-end balance
Item Exchange rate
balance denominated in RMB
Monetary funds — —
Including: USD 27,663,141.48 7.02880 194,438,688.83
EUR 1,354,479.22 8.25498 11,181,198.87
EGP 7,680,868.79 0.14729 1,131,315.16
GBP 1.32 9.46484 12.49
HKD 1,983,191.10 0.90322 1,791,257.87
CAD 6.96 5.13345 35.73
PLN 1,990,983.02 1.95511 3,892,590.81
Accounts receivable — —
Including: USD 87,163,632.40 7.02880 612,655,739.41
EUR 90,388.77 8.25498 746,157.49
EGP 0.14729
HKD 1,077,432.71 0.90322 973,158.77
AUD 49,764.00 4.70569 234,173.96
Other receivables — —
Including: USD 110,851,224.81 7.02880 779,151,088.94
EGP 108,000.00 0.14729 15,907.32
HKD 760,190.76 0.90322 686,619.50
JPY 21,400,000.00 0.04494 961,805.88
Accounts payable — —
Including: USD 5,589,778.90 7.02880 39,289,437.93
EUR 42,072.24 8.25498 347,305.50
EGP 30,620,358.59 0.14729 4,510,072.62
HKD 14,248.91 0.90322 12,869.90
Other payables — —
Including: USD 3,108,148.44 7.02880 21,846,553.76
EUR 103,562.95 8.25498 854,910.08
EGP 498,014.80 0.14729 73,352.60
HKD 14,616,606.82 0.90322 13,202,011.61
(2) Overseas operating entities
The significant overseas entities include Konka Trading, Hong Kong Konka, Zhongkang
Storage, Kangjet, Jiali International, and Xinying Semiconductor (Hong Kong). The main
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
overseas operating place is Hong Kong. The Company's recording currency is HKD since
the main currency in circulation in Hong Kong is HKD.
VII. R& D expendit
Amount incurred in the current
Item Amount incurred last year
year
Salary 200,826,276.67 226,287,518.69
Depreciation and amortization
expenses 116,768,922.25 105,315,963.39
New product trial production expense 2,156,329.48 20,011,198.25
Material expense 17,187,524.66 18,169,936.41
Patent fee 1,599,584.39 3,046,117.93
Testing expense 6,034,945.14 3,315,736.07
Others 41,532,254.37 40,259,369.60
Total 386,105,836.96 416,405,840.34
Including: Expensed R&D expenditure 386,105,836.96 416,405,840.34
Capitalized R&D expenditure
VIII. Changes in the scope of consolidation
The Company had no combinations of businesses not under common control in the
current period.
The Company had no business combinations under common control in the current period.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(1) Transactions or events resulting in loss of control over subsidiaries during the year
The
difference
between the
Method and
disposal
main Amount of
proceeds and
assumptions other
the carrying Book value Fair value of
for comprehensive
amount of of the the
Proportion Gain or loss determining income related
Disposal the share of remaining remaining
Disposal Basis for of arising from the fair value to the original
Disposal method net assets of equity at the equity at the
ratio at Point of determining remaining remeasuring of the equity
Subsidiaries consideration at the the consolidated consolidated
the point loss of the point of equity on the remaining investment in
Name at the point of point of subsidiary financial financial
of loss of control loss of the date of remaining equity at the the subsidiary
loss of control loss of attributable statement statement
control control loss of equity at fair consolidated transferred to
control to the level on the level on the
control value financial investment
disposed date of loss date of loss
statement gains/losses or
investment at of control of control
level on the retained
the
date of loss earnings
consolidated
of control
financial
statements
level
All rights and
obligations
Kangrong related to the Appraised
Jiayuan 4,221,401.00 41.00 Transfer 2025/5/9 target equity 212,859.38 10.00 977,693.08 1,029,610.00 51,916.92 price -
have been
transferred
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(1) Subsidiaries established in the current year
No subsidiaries were established in the current year.
(2) Subsidiaries deregistered or reduced in the current year
No subsidiaries were deregistered in the current year.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
IX. Equity in other entities
(1) Compositions of the Group
Shareholding
Main Place of Place of Percentage (%) Acquisition
No. Name of subsidiary Nature of Business
Business Registration method
Direct Indirect
Guangdong, Guangdong, Enterprise management consulting, incubation Establishment or
Shenzhen Shenzhen management, housing leasing, etc. investment
Establishment or
investment
Establishment or
investment
Establishment or
investment
Establishment or
investment
Establishment or
investment
Konka Electronic Guangdong, Guangdong, Establishment or
Material Shenzhen Shenzhen investment
Guangdong, Guangdong, Establishment or
Shenzhen Shenzhen investment
Establishment or
investment
Guangdong, Guangdong, Establishment or
Dongguan Dongguan investment
Establishment or
investment
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Shareholding
Main Place of Place of Percentage (%) Acquisition
No. Name of subsidiary Nature of Business
Business Registration method
Direct Indirect
Establishment or
investment
Telecommunication Guangdong, Guangdong, Establishment or
Technology Shenzhen Shenzhen investment
Hong Kong Konka Establishment or
Communications investment
Development of science Guangdong, Guangdong, Establishment or
and technology industry Shenzhen Shenzhen investment
Establishment or
investment
Establishment or
investment
Establishment or
investment
Anhui Electrical Establishment or
Appliance investment
Business
Combinations Not
Under Common
Control
Establishment or
investment
Business
Frestec Electrical Combinations Not
Appliances Under Common
Control
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Shareholding
Main Place of Place of Percentage (%) Acquisition
No. Name of subsidiary Nature of Business
Business Registration method
Direct Indirect
Appliances Combinations Not
Under Common
Control
Changzhou, Establishment or
Jiangsu investment
Hebei, Establishment or
Shijiazhuang investment
Guangdong, Guangdong, Establishment or
Shenzhen Shenzhen investment
Establishment or
investment
Establishment or
investment
Tianjin Pilot Free Tianjin Pilot Free Establishment or
Trade Zone Trade Zone investment
Guangdong, Guangdong, Establishment or
Shenzhen Shenzhen investment
Establishment or
investment
Establishment or
investment
Establishment or
investment
Zhongkang Storage Establishment or
Technology investment
Zhongkang Establishment or
Semiconductor investment
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Shareholding
Main Place of Place of Percentage (%) Acquisition
No. Name of subsidiary Nature of Business
Business Registration method
Direct Indirect
(Shaoxing)
Establishment or
investment
Establishment or
investment
Establishment or
investment
Establishment or
investment
Guangdong, Guangdong, Establishment or
Shenzhen Shenzhen investment
Yibin Konka Industrial Industrial park development, construction and Establishment or
Park operation management investment
Guangdong, Guangdong, Establishment or
Shenzhen Shenzhen investment
Guangdong, Guangdong, Establishment or
Shenzhen Shenzhen investment
Guangdong, Guangdong, Establishment or
Shenzhen Shenzhen investment
Guangdong, Guangdong, Establishment or
Shenzhen Shenzhen investment
Guangdong, Guangdong, Establishment or
Shenzhen Shenzhen investment
Guangdong, Guangdong, Establishment or
Shenzhen Shenzhen investment
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Shareholding
Main Place of Place of Percentage (%) Acquisition
No. Name of subsidiary Nature of Business
Business Registration method
Direct Indirect
Shenzhen Shenzhen investment
Establishment or
investment
Chengdu Konka Establishment or
Electronics investment
Business
Guangdong, Guangdong, Combinations Not
Zhongshan Zhongshan Under Common
Control
Liaoyang Kangshun Establishment or
Intelligent investment
Liaoyang Kangshun Establishment or
Renewable investment
Establishment or
investment
Establishment or
investment
Establishment or
investment
Business
Combinations Not
Under Common
Control
Business
Combinations Not
Under Common
Control
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Shareholding
Main Place of Place of Percentage (%) Acquisition
No. Name of subsidiary Nature of Business
Business Registration method
Direct Indirect
Guangdong, Guangdong, Establishment or
Shenzhen Shenzhen investment
Shenzhen Konka Guangdong, Guangdong, Establishment or
Semiconductor Shenzhen Shenzhen investment
Establishment or
investment
Establishment or
investment
Suining Konka Industrial Industrial park development, construction and Establishment or
Park operation management investment
Suining Electronic Establishment or
Technology Innovation investment
Shenzhen Chuangzhi Guangdong, Guangdong, Establishment or
Electrical Appliances Shenzhen Shenzhen investment
Chongqing
Establishment or
investment
Technology
Guangdong, Guangdong, Computer, telecommunications and other electronic Establishment or
Shenzhen Shenzhen equipment manufacturing investment
Konka Xinyun Computer, telecommunications and other electronic Establishment or
Semiconductor equipment manufacturing investment
Science and technology promotion and application Establishment or
services investment
Ningbo Kanghanrui Establishment or
Electric Appliances investment
Establishment or
investment
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Shareholding
Main Place of Place of Percentage (%) Acquisition
No. Name of subsidiary Nature of Business
Business Registration method
Direct Indirect
Ecological protection and environmental Establishment or
governance services investment
Hainan Konka Establishment or
Technology investment
Business
Jiangxi High Transparent Combinations Not
Substrate Under Common
Control
Computer, telecommunications and other electronic Establishment or
equipment manufacturing investment
Establishment or
investment
Konka Flexible Establishment or
Electronics investment
Kangjia Hongye Establishment or
Electronics investment
Xinying Semiconductor Wholesale of computers, software and auxiliary Establishment or
(Hong Kong) equipment investment
Konka Cross-border Establishment or
(Hebei) investment
Establishment or
investment
Ecological protection and environmental Establishment or
governance services investment
Manufacture of household cleaning and sanitary Establishment or
electrical appliances investment
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Shareholding
Main Place of Place of Percentage (%) Acquisition
No. Name of subsidiary Nature of Business
Business Registration method
Direct Indirect
Chongqing Xinyuan Science and technology promotion and application Establishment or
Semiconductor services investment
Establishment or
investment
Guangdong, Guangdong, Establishment or
Shenzhen Shenzhen investment
Qiannan
Guizhou Konka New Qiannan Prefecture, Establishment or
Material Technology Guizhou investment
Guizhou
Shanxi Smart Home Computer, telecommunications and other electronic Establishment or
Appliance equipment manufacturing investment
Qiannan
Guizhou Kanggui Qiannan Prefecture, Establishment or
Materials Guizhou investment
Guizhou
Establishment or
investment
Establishment or
investment
Jiangxi Konka Establishment or
Technology Park investment
Shangrao Konka
Establishment or
investment
Innovation
Zhejiang Konka Establishment or
Electronics investment
Zhejiang Konka Establishment or
Technology Industries investment
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Shareholding
Main Place of Place of Percentage (%) Acquisition
No. Name of subsidiary Nature of Business
Business Registration method
Direct Indirect
Establishment or
investment
Computer, telecommunications and other electronic Establishment or
equipment manufacturing investment
Xi'an Kanghong Establishment or
Technology Industry investment
Xi'an Konka Intelligent Establishment or
Technology investment
Songyang Industry Establishment or
Operation investment
Guangdong, Guangdong, Computer, telecommunications and other electronic Establishment or
Shenzhen Shenzhen equipment manufacturing investment
Songyang Konka Establishment or
Intelligent investment
Establishment or
investment
Guangdong, Guangdong, Establishment or
Shenzhen Shenzhen investment
(2) Significant non-wholly-owned subsidiaries
Gains/losses attributable to
Shareholding of Dividends declared to be distributed to Ending balance of minority
Name of subsidiary minority shareholders in the
minority shareholders minority shareholders in the current year shareholders' equities
current year
Shaanxi Konka Intelligent 49.00% -20,016,441.66 162,406,593.64
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(3) Key financial information of significant non-wholly-owned subsidiaries
Ending balance
Name of
subsidiary Non-Current
Current Assets Non-Current Assets Total Assets Current Liabilities Total Liabilities
Liabilities
Shaanxi Konka
Intelligent
(Continued)
Beginning balance
Name of
subsidiary
Current Assets Non-Current Assets Total Assets Current Liabilities Non-Current Liabilities Total Liabilities
Shaanxi Konka
Intelligent
(Continued)
Amount incurred in the current year Amount incurred last year
Name of
Total Cash flows from Total Cash flows
subsidiary Operating Operating
Net Profit comprehensive operating Net Profit comprehensive from operating
Revenue Revenue
income activities income activities
Shaanxi Konka -
Intelligent 307,282,044.08 -40,849,880.93 26,721,619.02 260,200,550.68 -24,414,126.47 -24,414,126.47 42,019,883.38
(1) Significant joint ventures or associates
Shareholding Percentage (%) Accounting Method for
Main Place Place of
Name of Joint Ventures or Associates Nature of Business Investment in Joint
of Business Registration
Direct Indirect Ventures or Associates
Oriental Jiakang No. 1 (Zhuhai) Private Equity
Zhuhai Zhuhai Investment Management 49.95 Equity Method
Investment Fund (Limited Partnership)
Shenzhen Jielunte Technology Co., Ltd. Shenzhen Shenzhen Professional Equipment 42.79 Equity Method
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Shareholding Percentage (%) Accounting Method for
Main Place Place of
Name of Joint Ventures or Associates Nature of Business Investment in Joint
of Business Registration
Direct Indirect Ventures or Associates
Manufacturing
(2) Key financial information of significant associates
Beginning-of-Year Balance / Amount Incurred in Previous
Year-End Balance / Amount Incurred in Current Year
Year
Item Oriental Jiakang No. 1 (Zhuhai) Oriental Jiakang No. 1 (Zhuhai)
Shenzhen Jielunte Shenzhen Jielunte
Private Equity Investment Fund Private Equity Investment Fund
Technology Co., Ltd. Technology Co., Ltd.
(Limited Partnership) (Limited Partnership)
Current Assets 350,138,667.41 219,896,979.76 679,918,421.73 299,214,528.27
Including: Cash and Cash Equivalents 18,775,457.35 16,787,261.84 9,020,859.89 16,394,140.52
Non-Current Assets 381,156,956.39 385,578,306.45
Total Assets 350,138,667.41 601,053,936.15 679,918,421.73 684,792,834.72
Current Liabilities 20,026,785.45 280,946,973.50 10,026,785.45 310,050,065.52
Non-Current Liabilities 140,456,865.19 172,196,132.11
Total Liabilities 20,026,785.45 421,403,838.69 10,026,785.45 482,246,197.63
Total Net Assets 330,111,881.96 179,650,097.46 669,891,636.28 202,546,637.09
Including: Minority Interests 4,215,206.30 6,414,476.36
Equity Attributable to Shareholders of the
Parent Company 330,111,881.96 175,434,891.16 669,891,636.28 196,132,160.73
Share of Net Assets Calculated Based on the
Shareholding 164,890,885.04 75,068,589.93 334,610,872.32 83,924,951.58
Adjustments
-- Goodwill
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Beginning-of-Year Balance / Amount Incurred in Previous
Year-End Balance / Amount Incurred in Current Year
Year
Item Oriental Jiakang No. 1 (Zhuhai) Oriental Jiakang No. 1 (Zhuhai)
Shenzhen Jielunte Shenzhen Jielunte
Private Equity Investment Fund Private Equity Investment Fund
Technology Co., Ltd. Technology Co., Ltd.
(Limited Partnership) (Limited Partnership)
-- Unrealized Profit on Internal Transactions
-- Others
Book value of equity investments in
associated enterprises 164,890,885.04 80,165,191.30 334,610,872.32 89,059,544.64
Fair value of equity investments in associates
with publicly quoted prices
Operating Revenue 350,072,893.86 453,598,821.35
Finance costs -46,291.23 10,056,355.95 -124,906.64 5,643,459.99
Income tax expense 4,961,196.48 6,482,111.17
Net Profit -339,771,443.55 -22,867,630.96 3,192,911.59 -15,630,059.79
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income -339,771,443.55 -22,867,630.96 3,192,911.59 -15,630,059.79
Dividend received from associates in the
current year
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(3) Summarized financial insignificant of unimportant joint ventures and
associates
Amount incurred at the end Amount incurred at the
Item of the year/in the current beginning of the year/in last
year year
Associates — —
Total book value of investments 1,780,982,080.65 4,304,690,436.53
The total of following items according to the
shareholding proportions — —
--Net profit -130,602,308.23 -127,981,842.74
--Other comprehensive income 1,707,518.13 -115,491.69
--Total comprehensive income -128,894,790.10 -128,097,334.43
X. Government grants
Amount
Subsidies recognized as Amount transferred
Account title Beginning balance increased in the non-operating to other income in
current year revenue in the the current year
current year
Deferred income 393,437,007.37 72,028,772.87 37,201,156.10
(Continued)
Other changes in the
Account title Ending balance Related to assets/income
current year
Deferred income -20,088,828.63 408,175,795.51 Related to assets/income
Amount incurred in the current
Account title Amount incurred last year
year
Other income -547,216,758.04 99,292,763.50
Finance costs 287,168.96 10,040,000.00
Remarks: Konka Hongye Electronics received a loan interest subsidy of RMB
finance costs.
XI. Risks related to financial instruments
The Group's main financial instruments include borrowings, accounts receivable,
accounts payable, trading financial assets, equity instrument investments, etc. Please
refer to Note VI for detailed descriptions of various financial instruments. The risks
related to these financial instruments and the risk management policies adopted by the
Group to mitigate these risks are described below. The management of the Group
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
manages and monitors these risk exposures to ensure that these risks are controlled
within a limited scope.
The Group's objective in risk management is to achieve an appropriate balance between
risk and return, minimize the negative impact of risk on the Group's operating
performance, and maximize the interests of shareholders and other equity investors.
Based on the risk management goal, the basic strategy of the Group's risk management
is determining and analyzing the various risks faced by the Group, setting up the bottom
line of risk and conducting appropriate risk management, and timely supervising various
risks in a reliable way and controlling the risk within the range of limit.
(1) Market risk
Foreign exchange risk refers to the risks that may lead to losses due to fluctuation in
exchange rate. The foreign exchange risk borne by the Group is related to USD. Except
the procurement and sales in USD of the Company's subsidiaries Hong Kong Konka,
Hongdin Trading, Chain Kingdom Memory Technologies, Hongjet and Benelux
International Limited, the Group's other primary business activities are settled in RMB.
The currency risk arising from the assets and liabilities of such balance in USD may
affect the Group's operating results. As of December 31, 2025, the Group's assets and
liabilities were mainly the balance in RMB except for the assets or liabilities of a balance
in USD as listed below.
Item December 31, 2025 December 31, 2024
Monetary funds 27,663,141.48 47,765,558.32
Accounts receivable 87,163,632.40 86,994,147.59
Other receivables 110,851,224.81 108,431,901.40
Accounts payable 5,589,778.90 5,367,446.58
Other payables 3,108,148.44 3,708,173.01
The Group pays close attention to the impact of exchange rate changes on the Group's
foreign exchange risk, and requires major companies in the Group that purchase and sell
in foreign currency to pay attention to the changes in foreign currency assets and
liabilities, manage the Group's foreign currency net asset exposure in a unified way,
implement single currency settlement, and reduce the scale of foreign currency assets
and liabilities, so as to reduce foreign exchange risk exposure.
The Group bears interest rate risk due to interest rate changes of interest-bearing
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
financial assets and liabilities. The Group's interest-bearing financial assets are mainly
bank deposits, of which the majority of the variable interest rates are short-term in nature,
while the interest-bearing financial liabilities are mainly bank borrowings and corporate
bonds. The Group's long-term bank borrowings and corporate bonds are at fixed interest
rates. The risk of cash flow changes of financial instruments caused by interest rate
changes is mainly related to short-term bank borrowings with floating interest rates. The
Group's policy is to maintain the floating interest rates of such borrowings to eliminate
the fair value risk of interest rate changes. As of December 31, 2025, the balance of
such short-term borrowings was RMB 4,575,915,552.66.
(2) Credit risk
As of December 31, 2025, the maximum credit risk exposure that may cause financial
losses to the Group mainly came from losses generated from the Group's financial
assets due to failure of the other party to a contract to perform its obligations and the
financial guarantee undertaken by the Group, including:
The book amount of the financial assets recognized in the consolidated balance sheet;
for financial instruments measured at fair value, the book value reflects its risk exposure,
but it is not the maximum risk exposure, and its maximum risk exposure will change with
the change of fair value in the future.
In order to reduce credit risk, the Group has set up a dedicated department to determine
the credit limit, conduct credit approval, and implement other monitoring procedures to
ensure that necessary measures are taken to recover overdue claims. In addition, the
Group reviews the recovery of each single receivable on each balance sheet date to
ensure that sufficient provision for bad debts is made for the unrecoverable amount.
Therefore, the Group's management believes that the Group's credit risk has been
greatly reduced.
The Group's working capital is deposited in banks with a high credit rating, so the credit
risk of working capital is low.
The Group has adopted necessary policies to ensure that all customers have good credit
records. Except for the top five customers in terms of the amount of accounts receivable,
the Group has no other major credit concentration risks. For the financial assets of the
Group that have been individually impaired, please refer to 4. Accounts receivable and 7.
Other receivables in Note VI.
(3) Liquidity risk
Liquidity risk refers to the risk that the Group is unable to fulfill its financial obligations on
the due date. The Group manages liquidity risk by ensuring that there is sufficient
liquidity to fulfil debt obligations without causing unacceptable loss or damage to the
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Group's reputation. In order to mitigate the liquidity risk, the Group's management has
carried out a detailed inspection on the liquidity of the Group, including the maturity of
accounts payable and other payables, bank credit lines and bond financing. The
conclusion is that the Group has sufficient funds to meet the needs of the Group's short-
term debts and capital expenditure.
The analysis of the financial assets and financial liabilities held by the Group
based on the maturity period of the undiscounted remaining contractual
obligations is as follows:
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Amount as of December 31, 2025:
Item Within one year One to two years Two to five years Over five years Total
Financial assets
Monetary funds 6,313,941,885.05 6,313,941,885.05
Trading financial assets 202,027,000.00 202,027,000.00
Notes receivable 77,316,985.56 77,316,985.56
Accounts receivable 1,086,929,012.15 1,086,929,012.15
Other receivables 942,267,792.91 942,267,792.91
Other current assets 235,601,218.08 235,601,218.08
Financial liabilities
Short-term borrowings 4,575,915,552.66 4,575,915,552.66
Notes payable 943,817,767.91 943,817,767.91
Accounts payable 1,977,736,371.29 1,977,736,371.29
Other payables 6,565,100,788.16 6,565,100,788.16
Employee benefits payable 223,175,513.10 223,175,513.10
Non-current liabilities maturing
within one year 3,650,840,615.21 3,650,840,615.21
Long-term borrowings 320,500,000.19 5,565,093,239.69 652,333,497.66 6,537,926,737.54
Bonds payable 396,674,876.37 1,200,000,000.00 1,596,674,876.37
Long-term payables 2,033,227.02 2,033,227.02
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
The Group adopts sensitivity analysis technology to analyze the possible impact of
reasonable and possible changes of risk variables on current gains/losses or shareholders'
equity. As any risk variable rarely changes in isolation, and the correlation between
variables will have a significant effect on the final impact amount of the change of a risk
variable, the following content is based on the assumption that the change of each variable
is independent.
(1) Sensitivity analysis of foreign exchange risk
Assumption for the sensitivity of foreign exchange risk: All net investment hedging and
cash flow hedging of overseas operations are highly effective.
On the basis of the above assumption, under the condition that other variables remain
unchanged, the impact of reasonable changes in the exchange rate on current
gains/losses and equity after tax is as follows:
Year 2025 Year 2024
Exchange rate
Item Impact on Impact on
fluctuations Impact on net
shareholders' Impact on net profit shareholders'
profit
equity equity
Appreciation of 1%
USD 12,279,535.69 8,479,654.71 13,038,269.46 9,355,341.19
against RMB
Depreciation of 1% -
USD -8,479,654.71 -13,038,269.46 -9,355,341.19
against RMB
(2) Sensitivity analysis of interest rate risk
Sensitivity analysis of interest rate risk is based on the following assumptions:
Changes in market interest rates affect the interest income or expense of financial
instruments with variable interest rates;
For financial instruments with fixed interest rates measured at fair value, market interest
rate changes affect only their interest income or expense;
Changes in the fair values of derivative financial instruments and other financial assets
and liabilities are calculated at the market interest rate on the balance sheet date by
discounted cash flow.
On the basis of the above assumptions and under the condition that other variables remain
unchanged, the impact of reasonable changes in the interest rate on current gains/losses
and equity after tax is as follows:
Year 2025 Year 2024
Interest
Item rate Impact on
Impact on net Impact on Impact on net
fluctuations shareholders'
profit shareholders' equity profit
equity
Borrowings at increase by -17,310,240.92 -16,968,636.09 -21,670,117.43 -21,331,876.38
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Year 2025 Year 2024
Interest
Item rate Impact on
Impact on net Impact on Impact on net
fluctuations shareholders'
profit shareholders' equity profit
equity
floating interest
rates
Borrowings at
reduce by
floating interest 17,310,240.92 16,968,636.09 21,670,117.43 21,331,876.38
rates 0.5%
XII. Disclosure of fair value
Closing fair value
Item
Level-1 fair value Level-2 fair value Level-3 fair value
Total
measurement measurement measurement
I. Continuous fair value
measurement — — — —
(I) Trading financial assets 202,027,000.00 202,027,000.00
measured at fair value 202,027,000.00 202,027,000.00
through current profit or loss
(II) Receivables financing 155,957,556.43 155,957,556.43
(III) Other debt investments
(IV) Other equity instrument
investments 10,213,810.20 10,213,810.20
(V) Investment properties
(VI) Other non-current
financial assets 1,161,781,213.03 1,161,781,213.03
Total assets continuously
measured at fair value 202,027,000.00 155,957,556.43 1,171,995,023.23 1,529,979,579.66
Total liabilities
continuously measured at
fair value
II. Non-continuous fair
value measurement — — — —
Total assets not
continuously measured at
fair value
Total liabilities not
continuously measured at
fair value
continuously measured at Level-1 fair value
The Level-1 input is an unadjusted quoted price in an active market for the same assets or
liabilities available on the measurement date.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
parameters adopted for projects continuously and non-continuously measured at
Level-2 fair value
Level-2 input value is the directly or indirectly observable input value of the relevant assets
or liabilities except for the Level-1 input value.
parameters adopted for projects continuously and non-continuously measured at
Level-3 fair value
The Level-3 inputs are the unobservable inputs of related assets or liabilities.
levels in the current year, the reasons for the conversion and the policy for
determining the conversion time point
For the Group's items continuously measured at fair value, there was no conversion
between levels in the current year.
changes
For the items measured at fair value of the Group, there were no changes in valuation
techniques in the current year.
XIII. Related parties and related party transactions
(1) Parent company of the Company
Voting right
Shareholding
percentage of
percentage of
Name of the parent Place of Nature of Registered the parent
the parent
company Registration Business capital company in
company in the
the Company
Company (%)
(%)
Panshi Runchuang
Consulting
(Shenzhen)
services and
Information Shenzhen RMB 11.71 billion 29.999997 29.999997
enterprise
Management Co.,
management
Ltd.
On April 29, 2025, the Company received a notice from its former controlling shareholder,
Overseas Chinese Town Group Co., Ltd.: To advance the professional integration among
central state-owned enterprises and optimize resource allocation, Overseas Chinese Town
Group and its persons acting in concert (including Shenzhen Overseas Chinese Town
Capital Investment Management Co., Ltd. and Jialong Investment Co., Ltd., wholly-owned
subsidiaries of Overseas Chinese Town Group) respectively signed the Unconditional
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Share Transfer Agreement in Respect of Konka Group Co., Ltd. with Panshi Runchuang
and Hemao Co., Ltd. It was planned to gratuitously transfer all shares of the Company
held by Overseas Chinese Town Group and its persons acting in concert to Panshi
Runchuang and Hemao Co., Ltd., wholly-owned subsidiaries under China Resources. As
of July 2025, the gratuitous share transfer has been fully completed. The controlling
shareholder of the Company has been changed to Panshi Runchuang, the actual
controller of the Company is China Resources Co., Ltd., and the ultimate actual controller
is the State-owned Assets Supervision and Administration Commission of the State
Council.
(2) Subsidiaries of the Company
Please refer to Note IX.1.(1) Subsidiaries for the information of subsidiaries.
(3) Associates of the Company
For details of the Company's important joint ventures or associates, please refer to Note
IX.2.(1) Important joint ventures or associates.
Joint ventures and associates involved in the related-party transactions with the Company
in the current year, or leading to balance due to the related-party transactions they had
with the Company in previous periods:
Name of associates Relationship with the Company
Kangkong Venture Capital (Shenzhen) Co., Ltd. Associate
Nanjing Zhihuiguang Information Technology Research Institute Co.,
Associate
Ltd.
Feidi Technology (Shenzhen) Co., Ltd. Associate
Foshan Zhujiang Media Creative Park Cultural Development Co.,
Associate
Ltd.
Kangkai Technology Service (Chengdu) Co., Ltd. Associate
Puchuang Jiakang Technology Co., Ltd. Associate
Shenzhen Jielunte Technology Co., Ltd. Associate
Orient Excellent (Zhuhai) Asset Management Co., Ltd. Associate
Tongxiang Wuzhen Kunyu Venture Capital Co., Ltd. Associate
Shenzhen RF-Link Technology Co., Ltd. Associate
Anhui Kaikai Shijie E-commerce Co., Ltd. Associate
Shaanxi Silk Road Yunqi Intelligent Technology Co., Ltd. Associate
Shenzhen Kanghongxing Intelligent Technology Co., Ltd. Associate
Shenzhen Zhongkang Beidou Technology Co., Ltd. Associate
Shenzhen Yaode Technology Co., Ltd. Associate
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Name of associates Relationship with the Company
Nantong Konka Technology Industrial Park Operation Management
Associate
Co., Ltd.
Chuzhou Kangxin Health Industry Development Co., Ltd. Associate
Dongguan Guankang Yuhong Investment Co., Ltd. Associate
Shenzhen Morsemi Semiconductor Technology Co., Ltd. Associate
Yantai Kangyun Industrial Development Co., Ltd. Associate
E3 (Hainan) Technology Co., Ltd. Associate
Shenzhen Konka Jiapin Intelligent Electrical Apparatus Technology
Associate
Co., Ltd.
Shenzhen Konka E-display Intelligent Technology Co., Ltd. Associate
Chongqing Yuanlv Benpao Real Estate Co., Ltd. Associate
Shenzhen Kangpeng Digital Technology Co., Ltd. Associate
Yantai Kangtang Construction Development Co., Ltd. Associate
Dongguan Kangzhihui Electronics Co., Ltd. Associate
Beijing Kangjia Jingyuan Technology Co., Ltd. Associate
Shenzhen Kangxi Technology Innovation Development Co., Ltd. Associate
Shandong Kangfei Intelligent Electrical Appliances Co., Ltd. Associate
Guangdong Kangyuan Semiconductor Co., Ltd. Associate
Chongqing Kangjian Photoelectric Technology Co., Ltd. Associate
Anhui Kangta Supply Chain Management Co., Ltd. Associate
Wuhan Kangtang Information Technology Co., Ltd. Associate
Sichuan Chengrui Real Estate Co., Ltd. Associate
Hefei Kangxinwei Storage Technology Co., Ltd. Associate
Sichuan Hongxinchen Real Estate Development Co., Ltd. Associate
Chongqing Lanlv Moma Real Estate Development Co., Ltd. Associate
Yantai Kangyue Investment Co., Ltd. Associate
Yikang Technology Co., Ltd. Associate
Dongguan Kangjia New Material Technology Co., Ltd. Associate
Zhejiang Kangying Semiconductor Technology Co., Ltd. Associate
Kangshengjia Smart Energy (Zhejiang) Co., Ltd. Associate
Konka Huanjia Environmental Protection Technology Co., Ltd. Associate
(4) Other related parties
Name of other related parties Relationship with the Company
Chuzhou Hanshang Electric Appliance Co., Ltd. Minority shareholder of subsidiary
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Name of other related parties Relationship with the Company
Hande Group Co., Ltd. Minority shareholder of subsidiary
Jiangsu Han Electric Appliance Co., Ltd. Minority shareholder of subsidiary
HOHO ELECTRICAL & FURNITURE CO Minority shareholder of subsidiary
Chongqing Liangshan Industrial Investment Co., Ltd. Minority shareholder of subsidiary
Zhu Xinming Minority shareholder of subsidiary
Hu Zehong Minority shareholder of subsidiary
AUJET INDUSTRY LIMITED Minority shareholder of subsidiary
Guizhou Jiading Mining Management Investment Co., Ltd. Minority shareholder of subsidiary
Beijing Xuri Shengxing Technology Co., Ltd. Minority shareholder of subsidiary
Central SOEs Industrial Investment Fund for Poverty-stricken Area
Minority shareholder of subsidiary
(Jiangxi) Industrial Investment Fund Partnership (L.P.)
Chuzhou State-owned Assets Operation Co., Ltd. Minority shareholder of subsidiary
Wu Guoren Minority shareholder of subsidiary
Xiao Yongsong Minority shareholder of subsidiary
Guizhou Huajinrun Technology Group Co., Ltd. Minority shareholder of subsidiary
Shenzhen Henglongtong Electronics Technology Co., Ltd. Minority shareholder of subsidiary
Liang Ruiling Minority shareholder of subsidiary
Shenzhen Qianhai Datang Technology Co., Ltd. Minority shareholder of subsidiary
Dai Yaojin Minority shareholder of subsidiary
Dai Rongxing Close family member of minority shareholder
Companies controlled by the ultimate controller
Jiangxi Meiji Enterprise Co., Ltd.
of minority shareholders of subsidiaries
(1) Related party transactions on purchase and sales of goods, rendering and
receipt of services
Content of related- Amount incurred in Amount incurred last
Related party
party transactions the current year year
Chuzhou Hanshang Electric Appliance
Purchase of goods 75,994,082.55 167,386,472.57
Co., Ltd.
Overseas Chinese Town Holdings
Purchase of goods
Company and its subsidiaries and 32,064,372.01 78,142,076.88
and services
associates
Shenzhen Jielunte Technology Co., Ltd.
Purchase of goods 27,838,757.55 78,398,311.31
and its subsidiaries and associates
Korea Electric Group Co., Ltd. and its
Purchase of goods 26,040,783.50 21,852,844.87
subsidiaries
Shenzhen KONKA E-display Co., Ltd. Purchase of goods
and its subsidiaries and services
Jiangsu Han Electric Appliance Co., Ltd. Purchase of goods 9,111,898.95 26,521,440.81
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Dongguan Kangjia New Materials
Purchase of goods 2,505,565.46 7,136,584.98
Technology Co., Ltd.
China Resources (Holdings) Co., Ltd. and Purchase of goods
its subsidiaries and associates and services
Shenzhen Konka Jiapin Intelligent
Purchase of services 576,004.87 4,419,586.21
Electrical Apparatus Technology Co., Ltd.
Dongguan Kangzhihui Electronics Co.,
Purchase of goods 489,548.36 1,443,620.08
Ltd.
Other related parties Purchase of services 1,034,604.39 11,159,587.52
Puchuang Jiakang Technology Co., Ltd. Purchase of goods - 37,713,014.15
HOHO Electrical & Furniture Co. Purchase of services - 25,101.76
Total 189,470,764.82 444,574,527.46
Content of related-party Amount incurred in
Related party Amount incurred last year
transactions the current year
Sales of goods and
Chuzhou Hanshang Electric
provision of labour 420,399,121.77 448,249,572.71
Appliance Co., Ltd.
services
Sales of goods and
Korea Electric Group Co., Ltd.
provision of labour 99,364,894.12 48,253,101.99
and its subsidiaries
services
Overseas Chinese Town Sales of goods and
Holdings Company and its provision of labour 25,706,408.18 66,416,176.82
subsidiaries and associates services
Zhejiang Kangying Sales of goods and
Semiconductor Technology Co., provision of labour 12,675,393.09 3,618,418.09
Ltd. and its subsidiaries services
Sales of goods and
Shenzhen KONKA E-display
provision of labour 8,959,810.73 56,756,074.23
Co., Ltd. and its subsidiaries
services
Dongguan Kangzhihui
Sales of goods 1,796,261.27 5,182,683.36
Electronics Co., Ltd.
Shenzhen Jielunte Technology Sales of goods and
Co., Ltd. and its subsidiaries provision of labour 897,808.28 21,105,047.32
and associates services
Sales of goods and
Subtotal of other related parties provision of labour 8,888,878.85 15,427,419.47
services
Total 578,688,576.29 665,008,493.99
(2) Related party leases
Lease income Lease income
Lessee Type of leased assets recognized in the recognized in the
current year previous year
Overseas Chinese Town Holdings
Commercial residences and
Company and its subsidiaries and 39,311,093.50 24,830,127.03
office buildings
associates
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Lease income Lease income
Lessee Type of leased assets recognized in the recognized in the
current year previous year
China Resources (Holdings) Co.,
Commercial residences and
Ltd. and its subsidiaries and 735,420.44
office buildings
associates
Commercial residences and
Other related parties 9,012,892.25 16,830,914.58
office buildings
Total 49,059,406.19 41,661,041.61
Lease expenses Lease expenses
Name of lessor Type of leased assets recognized in the current recognized in the
year previous year
Overseas Chinese Town Holdings Commercial residences
Company and its subsidiaries and office buildings 31,275,354.32 34,642,360.06
Dongguan Guankang Yuhong
Industrial plant 3,555,102.86 12,091,006.44
Investment Co., Ltd.
Total 34,830,457.18 46,733,366.50
(3) Related party guarantees
Whether
Contracted Actual
the
Name of the guarantee guarantee Start date of Expiry date of
Currency guarantee
guaranteed party amount amount guarantee guarantee
has been
(10,000 RMB) (10,000 RMB)
fulfilled
Bokang Precision 1,000.00 1,000.00 CNY 2025/4/29 2026/4/17 No
Konka Circuit 10,000.00 CNY 2023/7/19 2027/1/31 No
Anhui Tongchuang 2,000.00 2,000.00 CNY 2025/2/25 2026/2/24 No
Anhui Tongchuang 5,000.00 CNY 2025/2/24 2026/2/23 No
Anhui Tongchuang 4,000.00 1,500.00 CNY 2025/4/21 2026/4/21 No
Konka Xinyun
Semiconductor
Konka Xinyun
Semiconductor
Chongqing Konka 38,000.00 12,042.10 CNY 2022/12/13 2037/12/13 No
Electronics Technology 50,000.00 20,000.00 CNY 2024/12/3 2025/7/25 No
Dongguan Konka 80,000.00 32,841.61 CNY 2021/6/23 2031/5/7 No
Sichuan Konka 4,000.00 3,400.00 CNY 2023/5/23 2026/4/26 No
Yibin Smart 980.00 980.00 CNY 2025/5/19 2028/5/18 No
Xi'an Kanghong
Technology Industry
Kangjia Hongye
Electronics
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Whether
Contracted Actual
the
Name of the guarantee guarantee Start date of Expiry date of
Currency guarantee
guaranteed party amount amount guarantee guarantee
has been
(10,000 RMB) (10,000 RMB)
fulfilled
Ningbo Kanghanrui
Electric Appliances
Ningbo Kanghanrui
Electric Appliances
Anhui Konka 10,215.95 4,751.23 CNY 2021/8/10 2031/7/15 No
Anhui Konka 7,000.00 1,000.00 CNY 2021/10/29 2026/10/26 No
Anhui Konka 7,000.00 1,000.00 CNY 2022/10/24 2026/10/26 No
Anhui Konka 5,000.00 3,860.90 CNY 2023/6/25 2028/6/24 No
Anhui Konka 4,000.00 4,000.00 CNY 2025/3/6 2026/3/6 No
Econ Technology Co.,
Ltd.
Econ Technology Co.,
Ltd.
Econ Technology Co.,
Ltd.
Econ Technology Co.,
Ltd.
Econ Technology Co.,
Ltd.
Whether
Guarantee
the
amount Start date of Expiry date
Name of guarantor Currency guarantee
(10,000 guarantee of guarantee
has been
yuan)
fulfilled
Jiangxi Konka 13,431.31 CNY 2023/6/15 2027/3/8 No
Jiangxi Konka 56.53 CNY 2024/3/7 2027/3/6 No
Jiangxi High Transparent Substrate 38,045.57 CNY 2023/6/15 2027/3/19 No
Jiangxi High Transparent Substrate 258.80 CNY 2024/4/28 2030/3/6 No
Jiangxi High Transparent Substrate 234.44 CNY 2024/3/7 2027/3/6 No
Xinfeng Microcrystal 34,475.18 CNY 2023/6/15 2025/12/31 No
Xinfeng Microcrystal 1,379.77 CNY 2024/3/4 2027/3/3 No
Xingda Hongye 20,949.46 CNY 2025/6/19 2029/6/18 No
Konka Venture 1,322.54 CNY 2021/12/15 2022/11/5 No
Zhejiang Kangying Semiconductor
Technology Co., Ltd.
China Resources Co., Ltd. 150,000.00 CNY 2025/12/9 2027/1/29 No
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Whether
Guarantee
the
amount Start date of Expiry date
Name of guarantor Currency guarantee
(10,000 guarantee of guarantee
has been
yuan)
fulfilled
China Resources Co., Ltd. 40,000.00 CNY 2025/12/9 2027/3/18 No
China Resources Co., Ltd. 40,000.00 CNY 2025/12/9 2027/3/18 No
China Resources Co., Ltd. 41,000.00 CNY 2025/12/9 2028/6/23 No
China Resources Co., Ltd. 79,000.00 CNY 2025/12/9 2028/7/4 No
Chuzhou State-owned Assets Operation
Co., Ltd.
Chuzhou State-owned Assets Operation
Co., Ltd.
Chuzhou State-owned Assets Operation
Co., Ltd.
Chuzhou State-owned Assets Operation
Co., Ltd.
Chuzhou State-owned Assets Operation
Co., Ltd.
Wu Guoren 875.00 USD 2019/12/31 2024/12/31 No
Wu Guoren 2,022.50 USD 2019/12/31 2024/12/31 No
Xiao Yongsong 840.00 USD 2019/12/31 2024/12/31 No
Xiao Yongsong 1,941.60 USD 2019/12/31 2024/12/31 No
United Fortune Supply Chain Co., Ltd. 1,269.10 USD 2021/6/21 2022/12/31 No
United Fortune Supply Chain Co., Ltd. 650.49 USD 2021/6/21 2022/12/31 No
Guizhou Huajinrun Technology Group
Co., Ltd.
Guizhou Huajinrun Technology Group
Co., Ltd.
Shenzhen Henglongtong Electronics
Technology Co., Ltd.
Shenzhen Henglongtong Electronics
Technology Co., Ltd.
AUJET INDUSTRY LIMITED 3,227.63 USD 2021/11/10 2025/12/31 No
AUJET INDUSTRY LIMITED 40.18 USD 2021/11/10 2025/12/31 No
AUJET INDUSTRY LIMITED 1,029.00 USD 2020/7/20 2025/12/31 No
Zhu Xinming 12,446.00 CNY 2022/10/15 2023/10/14 No
Zhu Xinming 3,399.49 CNY 2023/1/1 2023/12/31 No
Zhu Xinming 13,249.19 CNY 2023/2/19 2024/2/18 No
Zhu Xinming 6,860.00 CNY 2023/3/1 2024/2/28 No
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Whether
Guarantee
the
amount Start date of Expiry date
Name of guarantor Currency guarantee
(10,000 guarantee of guarantee
has been
yuan)
fulfilled
Zhu Xinming 2,330.54 CNY 2023/3/9 2024/3/8 No
Zhu Xinming 2,156.00 CNY 2023/4/1 2023/9/30 No
Zhu Xinming 443.45 CNY 2023/1/13 2023/12/31 No
Zhu Xinming 44.05 CNY 2023/3/30 2023/12/31 No
Zhu Xinming 443.45 CNY 2023/4/14 2023/12/31 No
Zhu Xinming 44.05 CNY 2023/6/30 2023/12/31 No
Zhu Xinming 443.45 CNY 2023/7/14 2023/12/31 No
Zhu Xinming 44.05 CNY 2023/10/11 2023/12/31 No
Zhu Xinming 149.45 CNY 2023/10/13 2023/12/31 No
Zhu Xinming 44.05 CNY 2023/12/29 2023/12/31 No
Zhu Xinming 490.00 CNY 2023/2/28 2024/2/27 No
Zhu Xinming 5,109.05 CNY 2023/1/1 2023/12/31 No
Zhu Xinming 252.63 CNY 2023/1/13 2023/12/31 No
Zhu Xinming 101.77 CNY 2023/1/13 2023/12/31 No
Zhu Xinming 203.63 CNY 2023/4/14 2023/12/31 No
Zhu Xinming 1,862.90 CNY 2023/1/1 2023/12/31 No
Zhu Xinming 223.85 CNY 2023/2/17 2023/12/31 No
Zhu Xinming 93.12 CNY 2023/3/8 2023/12/31 No
Zhu Xinming 101.35 CNY 2023/5/19 2023/12/31 No
Zhu Xinming 93.12 CNY 2023/6/8 2023/12/31 No
Zhu Xinming 93.12 CNY 2023/9/8 2023/12/31 No
Zhu Xinming 62.25 CNY 2023/12/7 2023/12/31 No
Zhu Xinming 137.20 CNY 2024/11/1 2026/10/30 No
Hu Zehong 2025/6/19 2029/6/18 No
Liang Ruiling, Dai Yaojin 2025/6/19 2026/12/31 No
Sui Yong Rongxin Asset Management
Co., Ltd.
Sui Yong Rongxin Asset Management
Co., Ltd.
Shenzhen Henglongtong Electronic
Technology Co., Ltd., Guizhou Huajinrun 735.00 CNY 2022/1/1 2025/12/31 No
Technology Group Co., Ltd., Huaying
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Whether
Guarantee
the
amount Start date of Expiry date
Name of guarantor Currency guarantee
(10,000 guarantee of guarantee
has been
yuan)
fulfilled
Gaokede Electronic Technology Co.,
Ltd., and Huaying Gaokelong Electronic
Technology Co., Ltd.
Shenzhen Baili Yongxing Technology
Co., Ltd.
Shenzhen Henglongtong Electronic
Technology Co., Ltd., Guizhou Huajinrun
Technology Group Co., Ltd., Huaying
Gaokede Electronic Technology Co.,
Ltd., and Huaying Gaokelong Electronic 488.37 CNY
Technology Co., Ltd.
Shenzhen Baili Yongxing Technology
Co., Ltd.
Shenzhen Henglongtong Electronic
Technology Co., Ltd., Guizhou Huajinrun
Technology Group Co., Ltd., Huaying
Gaokede Electronic Technology Co.,
Ltd., and Huaying Gaokelong Electronic 552.72 CNY
Technology Co., Ltd.
Shenzhen Baili Yongxing Technology
Co., Ltd.
Chuzhou Hanshang Electric Appliance
Co., Ltd.
Shenzhen Qianhai Datang Technology
Co., Ltd.
(4) Loans from/to related parties
Amount (10,000
Related party name Currency Start date Due date
RMB)
Borrowing
Panshi Runchuang (Shenzhen) Information
Management Co., Ltd.
Chuzhou Hanshang Electric Appliance Co., Ltd. 12,862.50 CNY 2025/1/1 2025/12/31
Chuzhou Hanshang Electric Appliance Co., Ltd. 2,450.00 CNY 2024/8/3 2025/12/31
Chuzhou Hanshang Electric Appliance Co., Ltd. 980.00 CNY 2025/2/14 2026/2/13
Kangkong Venture Capital (Shenzhen) Co., Ltd. 245.00 CNY 2022/7/21 2026/7/18
Beijing Xuri Shengxing Technology Co., Ltd. 228.67 CNY 2024/12/1 2025/11/30
Total 233,766.17
Lending
Dongguan Guankang Yuhong Investment Co.,
Ltd.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Amount (10,000
Related party name Currency Start date Due date
RMB)
Dongguan Guankang Yuhong Investment Co.,
Ltd.
Chuzhou Kangxin Health Industry Development
Co., Ltd.
Chuzhou Kangxin Health Industry Development
Co., Ltd.
Chuzhou Kangxin Health Industry Development
Co., Ltd.
Chuzhou Kangxin Health Industry Development
Co., Ltd.
Chuzhou Kangxin Health Industry Development
Co., Ltd.
Chuzhou Kangxin Health Industry Development
Co., Ltd.
Chuzhou Kangxin Health Industry Development
Co., Ltd.
Chuzhou Kangxin Health Industry Development
Co., Ltd.
Chuzhou Kangxin Health Industry Development
Co., Ltd.
Chuzhou Kangxin Health Industry Development
Co., Ltd.
Chuzhou Kangxin Health Industry Development
Co., Ltd.
Sichuan Chengrui Real Estate Co., Ltd. 14,724.50 CNY 2022/1/21 2026/4/15
Yantai Kangyue Investment Co., Ltd. 12,852.70 CNY 2020/12/16 2022/11/5
Yantai Kangyun Industrial Development Co., Ltd. 10,020.00 CNY 2021/11/23 2026/3/31
Yantai Kangyun Industrial Development Co., Ltd. 949.00 CNY 2022/8/25 2026/3/31
Yantai Kangyun Industrial Development Co., Ltd. 1,394.00 CNY 2022/8/25 2026/3/31
Yantai Kangyun Industrial Development Co., Ltd. 323.00 CNY 2022/8/25 2026/3/31
Yantai Kangyun Industrial Development Co., Ltd. 564.00 CNY 2022/8/25 2026/3/31
Yantai Kangyun Industrial Development Co., Ltd. 1,020.00 CNY 2022/3/17 2026/3/31
Yantai Kangyun Industrial Development Co., Ltd. 3,400.00 CNY 2022/5/23 2026/3/31
Yantai Kangyun Industrial Development Co., Ltd. 2,500.00 CNY 2022/6/1 2026/3/31
Yantai Kangyun Industrial Development Co., Ltd. 2,430.00 CNY 2022/11/15 2026/3/31
Chongqing Lanlv Moma Real Estate Development
Co., Ltd.
Sichuan Hongxinchen Real Estate Development
Co., Ltd.
Econ Technology Co., Ltd. 18,315.11 CNY 2023/12/20 2026/12/20
Econ Technology Co., Ltd. 4,996.58 CNY 2023/12/21 2026/12/20
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Amount (10,000
Related party name Currency Start date Due date
RMB)
Chongqing Liangshan Industrial Investment Co.,
Ltd.
Chongqing Liangshan Industrial Investment Co.,
Ltd.
Total 181,349.18
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(5) Other related party transactions
Transaction
Content of related-
Related party Quantity (shares) Unit price (RMB) price (RMB
party transactions
China Resources Asset Transfer of shares held
Management (Shenzhen) in Wuhan Tianyuan 66,283,973.00 13.80 91,471.88
Co., Ltd. Group Co., Ltd.
Content of
Amount
Related party related-party Term
(RMB 10,000)
transactions
The term is 3+3*N years (where N = 1, 2, 3..., and N
is the number of extensions), meaning the initial
duration is 3 years. Each 3-year period constitutes a
duration cycle. Upon the expiration of the initial
duration, it can be extended for another duration
Panshi Runchuang
Perpetual bond cycle, with no limit on the number of extensions.
(Shenzhen) Information 500,000.00
financing Within 20 working days before the expiration of any
Management Co., Ltd.
duration cycle, the Company has the right to choose
to extend for another duration cycle; or choose to
repay the entire principal, all accrued but unpaid
interest (including deferred interest), accretions, and
other payables (if any).
(Continued)
Interest payment date and interest
Interest rate Order of repayment
deferral option
Interest is payable annually. The Company
shall have the right to defer interest The payment order of the
The annualized interest rate is the one-year
payments, and may at its discretion defer principal, interest, and
Loan Prime Rate (LPR), a floating rate.
payment of the interest payable for the accretions (if any) of the
Each 12-month period is a floating cycle,
current period, together with all previously perpetual bond held by
with repricing occurring once per floating
deferred interest and accrued interest Panshi Runchuang is
cycle. No interest rate jump-up clause is
thereon, to the next interest payment date, subordinated to the
stipulated.
with no limit on the number of such interest Company's general debts.
deferrals.
(6) Remuneration for key management personnel
Project The current year (RMB 10,000) Last year (RMB 10,000)
Total remuneration 587.40 805.91
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(1) Receivables
Ending balance Beginning balance
Related party
Provision for Provision for bad
Balance Balance
bad debts debts
Accounts receivable:
Shenzhen Yaode Technology Co., Ltd. and its 144,454,581. 144,454,581. 147,734,6
subsidiaries 31 31 52.41
HOHO ELECTRICAL & FURNITURE CO., LIMITED 93,990,064.79
Chuzhou Hanshang Electric Appliance Co., Ltd. 2,002,825.54 973,445.73
Overseas Chinese Town Holdings Company and its 65,818,264.0 46,400,209.9 72,276,97
subsidiaries and associates 4 7 9.60
Shenzhen Kanghongxing Intelligent Technology Co., 38,319,878.7 38,319,878.7 38,344,11
Ltd. 7 7 5.39
Handian Group Co., Ltd. and its subsidiaries and 27,943,560.3 852,837.0
associates 9 8
Anhui Kaikai Shijie E-commerce Co., Ltd. and its 26,436,604.9 26,677,41
subsidiaries 2 7.75
Shandong Kangfei Intelligent Electrical Appliances 4,466,641.
Co., Ltd. 58
Shenzhen KONKA E-display Co., Ltd. and its 1,367,734.
subsidiaries 51
Shenzhen Jielunte Technology Co., Ltd. and its 13,210,04
subsidiaries and associates 6.28
Subtotal of other related parties 9,361,800.98 617,441.63 674,330.10
Total 320,038,130.75
Financing accounts receivable/Notes receivable:
Korea Electric Group Co., Ltd. and its subsidiaries 3,209,127.25
Chuzhou Hanshang Electric Appliance Co., Ltd.
Total 3,209,127.25
Other receivables:
Konka Huanjia Environmental Protection 1,744,736,43 1,744,736,43 1,744,736,
Technology Co., Ltd. 4.49 4.49 434.49
Chuzhou Kangxin Health Industry Development Co., 460,482,883. 341,564,138. 428,413,3
Ltd. 84 02 83.27
Yantai Kangyun Industry Development Co., Ltd. and 293,164,911. 200,813,312. 274,833,8
its subsidiaries 17 70 00.04
Sichuan Hongxinchen Real Estate Development 260,445,465. 260,445,465. 244,320,9
Co., Ltd. 59 59 45.73
Dongguan Guankang Yuhong Investment Co., Ltd. 2,200,000.00
Chongqing Lanlv Moma Real Estate Development 236,698,102. 236,698,102. 236,698,1
Co., Ltd. 31 31 02.31
Sichuan Chengrui Real Estate Co., Ltd.
Yantai Kangyue Investment Co., Ltd. 73,609,697.70
Chongqing Liangshan Industrial Investment Co., Ltd. 3,026,160.28 1,008,581.51
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Ending balance Beginning balance
Related party
Provision for Provision for bad
Balance Balance
bad debts debts
Dai Rongxing 89,251,531.41
Jiangxi Meiji Enterprise Co., Ltd. 93,512,640.31
Shenzhen Kanghongxing Intelligent Technology Co., 39,130,497.1 39,130,497.1 39,130,49
Ltd. 7 7 7.17
Overseas Chinese Town Holdings Company and its 28,342,867.9 22,862,402.5 31,319,55
subsidiaries and associates 6 9 0.72
HOHO ELECTRICAL & FURNITURE CO., LIMITED 2,466,257.96 2,466,257.96 2,522,359.24
Zhu Xinming 1,844,316.15 418,475.33 184,800.48
Hu Zehong 333,084.83 165,196.50 171,132.24
Subtotal of other related parties 4,761,997.11 184,522.25 71,393.70
Total 2,085,237,486.55
Prepayments:
Kangshengjia Smart Energy (Zhejiang) Co., Ltd. 67,139,571.68
Puchuang Jiakang Technology Co., Ltd. 377,322.00 377,322.00
Overseas Chinese Town Holdings Company and its 113,278.6
subsidiaries and associates 0
Subtotal of other related parties 491,110.16 52,339.79 491,110.16
Total 68,029,428.33
Other current assets:
Yikang Technology Co., Ltd. and its subsidiaries 235,601,218.08
Total 235,601,218.08
Contract assets:
Overseas Chinese Town Holdings Company and its 401,807.8
subsidiaries and associates 4
Total 963,764.77 51,725.07 8,196.88
(2) Payables
Ending book Beginning book
Related party
balance balance
Accounts payable:
Overseas Chinese Town Holdings Company and its subsidiaries and associates 43,601,700.08 42,040,127.95
Shenzhen Jielunte Technology Co., Ltd. and its subsidiaries and associates 13,297,141.47 65,368,676.00
HOHO ELECTRICAL & FURNITURE CO., LIMITED 4,510,072.62 5,036,570.10
Anhui Kaikai Shijie E-commerce Co., Ltd. and its subsidiaries 4,326,148.17 4,326,148.17
Handian Group Co., Ltd. and its subsidiaries and associates 4,309,351.22 4,189,576.68
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Ending book Beginning book
Related party
balance balance
Chuzhou Hanshang Electric Appliance Co., Ltd. 4,253,835.32 8,399,596.80
Dongguan Guankang Yuhong Investment Co., Ltd. 2,783,842.00 7,783,842.00
Shenzhen KONKA E-display Co., Ltd. and its subsidiaries 1,245,087.25 11,078,987.35
Subtotal of other related parties 1,984,392.70 22,555,598.64
Total 80,311,570.83 170,779,123.69
Notes payable:
Shenzhen Jielunte Technology Co., Ltd. and its subsidiaries and associates 13,596,541.72 10,327,556.31
Handian Group Co., Ltd. and its subsidiaries and associates 4,689,383.18 1,565,908.77
Dongguan Kangjia New Materials Technology Co., Ltd. 918,483.35 1,991,363.46
Shenzhen Konka Jiapin Intelligent Electrical Apparatus Technology Co., Ltd. 807,859.00
Total 20,012,267.25 13,884,828.54
Contract liabilities/other current liabilities/other non-current liabilities:
Overseas Chinese Town Holdings Company and its subsidiaries and associates 53,849,339.85 65,821,382.94
Shenzhen Konka Jiapin Intelligent Electrical Apparatus Technology Co., Ltd. 8,417,949.44 4,449,842.05
AUJET INDUSTRY LIMITED 3,983,759.72 3,851,376.79
Zhejiang Kangying Semiconductor Technology Co., Ltd. and its subsidiaries 1,604,546.07 22,446.94
Chongqing Kangyiqing Technology Co., Ltd. 206,882.30 146,882.30
Shenzhen KONKA E-display Co., Ltd. and its subsidiaries 153,017.09 915,488.73
Subtotal of other related parties 135,288.55 332,100.74
Total 68,350,783.02 75,539,520.49
Other payables:
China Resources Company Limited and its subsidiaries and associates
Chuzhou Hanshang Electric Appliance Co., Ltd. 207,983,241.15
Overseas Chinese Town Holdings Company and its subsidiaries and associates 28,045,215.53 22,391,131.89
Guizhou Jiading Mining Management Investment Co., Ltd. 18,000,000.00 18,000,000.00
Dongguan Guankang Yuhong Investment Co., Ltd. 15,655,996.80 12,100,893.94
Shenzhen KONKA E-display Co., Ltd. and its subsidiaries 5,147,213.00 1,000,000.00
Konka Huanjia Environmental Protection Technology Co., Ltd. 4,353,280.41 5,104,349.30
Yantai Kangtang Construction Development Co., Ltd. 3,000,000.00
Beijing Xuri Shengxing Technology Co., Ltd. 2,814,638.40 2,675,533.68
Kangkong Venture Capital (Shenzhen) Co., Ltd. 2,523,500.00 2,523,701.42
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Ending book Beginning book
Related party
balance balance
Yikang Technology Co., Ltd. and its subsidiaries 355,586.25 21,696,728.31
Central SOEs Industrial Investment Fund for Poverty-stricken Area (Jiangxi)
Industrial Investment Fund Partnership (L.P.)
Subtotal of other related parties 9,065,998.82 10,446,793.62
Total 318,322,373.31
Advances from customers:
China Resources Company Limited and its subsidiaries and associates 61,285.03 61,285.03
Total 61,285.03 61,285.03
XIV. Commitments and contingencies
(1) Capital commitments
Item Ending balance Beginning balance
Contract signed but hasn't been recognized in financial
statements
Commitment to purchase and construct long-term assets 137,000,000.00
Large-scale outsourcing contract 85,942,612.22 173,593,973.84
Foreign investment commitments
Total 222,942,612.22 173,593,973.84
(2) Other commitments
As of December 31, 2025, there were no other significant commitments for the Group to
disclose.
The Group's material contingencies requiring disclosure are set out below:
(1) A dispute over an international contract for the sale of goods between Micro Crystal
Transfer Group Ltd. (plaintiff) and Chongqing Optoelectronic Technology Co., Ltd., a
subsidiary of the Company (defendant), involving a disputed amount of RMB36,396,700.
As of the date of issuance of this report, the case was under trial.
(2) A dispute over a construction contract between Shenzhen Sansen Decoration Group
Co., Ltd. (plaintiff) and Shenzhen Konka Semiconductor, a subsidiary of the Company
(defendant), and Chongqing Konka, a subsidiary of the Company (defendant), involving a
subject matter amount of RMB 25,607,300. As of the date of issuance of this report, the
case was under trial.
(3) A dispute over a sales and purchase contract between Jiujiang Baoyong Gas Co., Ltd.
(plaintiff) and Jiangxi High-transparency Substrate, a subsidiary of the Company
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
(defendant), involving a subject matter amount of RMB 91,227,800. As of the date of
issuance of this report, the case was in execution.
(4) A dispute over a construction project contract between Nantong Construction Group
Co., Ltd. (Plaintiff) and Haimen Ronghui Real Estate Co., Ltd. (Defendant), Shanghai
Rongzhen Enterprise Management Co., Ltd. (Defendant), the Company (Defendant), and
Nantong Konka Technology Industrial Park Operation Management Co., Ltd. (Defendant),
an associated entity of the Company, involving a disputed amount of RMB 99,000,000. As
of the date of issuance of this report, the case was under trial.
(5) A dispute over a construction contract between Sichuan Yisheng Construction Group
Co., Ltd. (plaintiff) and Yibin Konka Industrial Park, a subsidiary of the Company
(defendant), involving a subject matter amount of RMB 28,061,000. As of the date of
issuance of this report, the case was under trial.
(6) A dispute over a contract between Shenzhen Oriental Venture Capital Co., Ltd.
(plaintiff) and the Company (defendant), involving a subject matter amount of RMB
plaintiff has filed an application for retrial. As of the date hereof, the case is under retrial
review.
(7) In 2018, to support the financing of Donggang Kangrun Environmental Treatment Co.,
Ltd. (hereinafter referred to as “Donggang Kangrun”), a subsidiary controlled by Yikang,
Konka issued a support letter to China Construction Bank Corporation Donggang Sub-
branch (hereinafter referred to as “CCB Donggang Sub-branch”). The main contents are
as follows: “Donggang Kangrun is a subsidiary of our company and the project company of
the Donggang Urban Inland River Comprehensive Treatment PPP Project (hereinafter
referred to as the ‘Project’). Our company attaches great importance to the Project.
Therefore, Donggang Kangrun intends to apply to your bank for a project loan of RMB 975
million to support the fund operation of the Project. In addition to the applied loan, our
company will use self-raised funds and other financing channels to support the Project to
ensure its smooth progress, and guarantee that Donggang Kangrun will repay the loan
from your bank in full when due”. As of December 31, 2026, the outstanding principal
balance of loans borrowed by Donggang Kangrun from CCB Donggang Sub-branch
amounted to RMB 852,000,000.
(8) In 2019, to support the financing of Weifang Sihai Kangrun Investment and Operation
Co., Ltd. (hereinafter referred to as "Weifang Kangrun"), a controlling subsidiary of Econ,
Konka issued two letters of support to the Weifang Branch of Industrial Bank Co., Ltd.
(hereinafter referred to as "CIB Weifang Branch"). The main contents were respectively:
"Our company will use self-raised funds and other financing channels to support the
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Weifang Binhai Economic Development Zone Central Urban Area Comprehensive
Improvement Project to ensure the smooth progress of the project, and at the same time
ensure that Weifang Kangrun can repay your bank's loan in full on the due date," and "Our
company will use self-raised funds to support the Weifang Binhai Economic and
Technological Development Zone Central Urban Area Comprehensive Improvement
Project and ensure that the project capital of Weifang Kangrun is in place on time and in
full". As of December 31, 2025, the outstanding loan balance (principal) of Weifang
Kangrun to CIB Weifang Branch was RMB 595,114,700.
XV. Subsequent events after the balance sheet date
As of the date of issuance of this financial report, the significant non-adjusting events that
the Group needs to disclose are as follows:
A case concerning a dispute over a construction contract between Longxin Construction
Group Co., Ltd. (plaintiff) and Nantong Kanghai (defendant), involving a subject matter
amount of RMB 80,000,000.00. As of the date of issuance of this report, the case was
under trial.
As of the date of this financial report, the Group had no material sales returns.
As of the date of issuance of this financial report, the Group has no other events after the
balance sheet date.
XVI. Other key matters
(1) Retrospective restatement method
After self-inspection, for the failure to consider the agreed matters of some equity transfer
projects, and the underprovision of patent royalties and bad debt provisions for accounts
receivable of specific customers in previous years, the Group corrected the related errors,
as detailed below:
① In the process of auditing and preparing the 2025 annual report, after careful verification,
when introducing strategic investors for Ypfun in 2021, the Group signed supplementary
agreements with 11 investors, promising that if Ypfun failed to complete its IPO before the
agreed time, the Group would be obliged to repurchase their transferred equity at the
original transfer price and pay interest. The above-mentioned agreed matters did not go
through the approval procedures of the Company's Board of Directors and the General
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Meeting, and were not subjected to appropriate accounting treatment and information
disclosure. Based on this contractual obligation and the facts currently known, the
Company's management recognized this obligation as a financial liability and corrected
previous accounting errors.
② When our company transferred the equity of Anhui Kaikai Vision E-commerce Co., Ltd.
(hereinafter referred to as "Kaikai Vision") in previous years, it signed a shareholder
agreement with Alibaba (China) Technology Co., Ltd. (hereinafter referred to as "Alibaba").
Under the agreement, the company undertook the obligation to repurchase the equity and
pay interest if the IPO of Kaikai Vision was not completed within the agreed time limit.
Ultimately, Kaikai Vision failed to complete its IPO and listing as scheduled. The aforesaid
shareholder agreement was not reviewed and approved by the company's General
Manager's Office Meeting and Party Committee Office Meeting, nor was appropriate
accounting treatment and information disclosure conducted. Based on the contractual
obligations and currently available facts, the company's management recognized such
payment obligations as financial liabilities and carried out prior period error corrections.
The company has fulfilled the equity repurchase obligation and paid the relevant interest in
November 2025.
③ The color TV products operated and sold by the Group adopt essential patents
complying with industry standards. Through self-inspection, the Company has confirmed
discrepancies in the previously paid data. The Group shall accrue the relevant patent
royalties retroactively for prior years and make corrections to prior period errors.
④ Accounts receivable of specific customers of the Group were overdue and uncollected.
After careful verification, the overdue and uncollected accounts receivable of such
customers were caused by the inability of related underlying customers to repay. Individual
bad debt provision should be made in the year when the related underlying customers lose
their repayment ability, and previous accounting errors should be corrected.
On April 27, 2026, the Group held the 11th Meeting of the 11th Board of Directors to
review and approve the Proposal on Correction of Previous Accounting Errors and
Retrospective Adjustments, specifying that the Company should correct the previous
accounting errors in accordance with the Accounting Standard for Business Enterprises
No. 28 - Changes in Accounting Policies and Accounting Estimates and Correction of
Errors and the Rules for the Compilation of Information Disclosure by Companies Offering
Securities to the Public No. 19 - Correction of Financial Information and Related
Disclosures.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Names of statement items affected in comparative periods Cumulative impact
Accounts receivable -143,700,409.78
Long-term equity investments 1,193,140,574.00
Other payables 1,826,641,494.04
Undistributed profits -777,201,329.82
Cost of sales 235,788,807.29
Finance costs 324,752,686.75
Credit impairment loss -143,700,409.78
Asset impairment loss -72,959,426.00
XVII. Notes to the main items of the financial statements of the parent company
(1) Accounts receivable aged analysis
Aging Ending book balance Beginning book balance
Within 1 year (including 1 year) 2,518,870,996.93 2,478,867,657.14
Over 5 years 857,898,045.25 848,569,108.69
Total 4,451,665,588.85 3,675,587,286.57
(2) Accounts receivable classified and listed by provision methods for bad debts
Ending balance
Balance Provision for bad debts
Category
Provision Book value
Percentage
Amount Amount percentage
(%)
(%)
Provision for bad debts
by single item 750,993,030.62 16.87 750,932,742.61 99.99 60,288.01
Provision for bad debts
by portfolio
Of which: Aging
portfolio 243,003,431.27 5.46 154,701,363.19 63.66 88,302,068.08
Related party portfolio 3,457,669,126.96 77.67 3,457,669,126.96
Subtotal of portfolio 3,700,672,558.23 83.13 154,701,363.19 4.18 3,545,971,195.04
Total 4,451,665,588.85 100.00 905,634,105.80 20.34 3,546,031,483.05
(Continued)
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Beginning balance
Balance Provision for bad debts
Category
Provision Book value
Percentage
Amount Amount percentage
(%)
(%)
Provision for bad debts
by single item 751,101,547.52 20.43 751,041,259.51 99.99 60,288.01
Provision for bad debts
by portfolio
Of which: Aging
portfolio 262,862,169.32 7.15 141,146,416.75 53.70 121,715,752.57
Related party portfolio 2,661,623,569.73 72.41 2,661,623,569.73
Subtotal of portfolio 2,924,485,739.05 79.57 141,146,416.75 4.83 2,783,339,322.30
Total 3,675,587,286.57 100.00 892,187,676.26 24.27 2,783,399,610.31
Beginning balance Ending balance
Name Provision
Provision for Provision for Reasons for the
Balance Balance percentage
bad debts bad debts provision
(%)
CEFC Shanghai
International 298,855,950.30 298,855,950.30 100.00
Group Limited
Hongtu
Sanpower 200,000,0 200,000,000. Not expected to
Technology Co., 00.00 00 be recoverable
Ltd.
Zhongfu
Tiangong 71,289,09 71,289,096.6 Not expected to
Construction 6.65 5 be recoverable
Group Co., Ltd.
CCCC First
Harbor 55,438,10 55,438,105.0 Not expected to
Engineering 5.00 0 be recoverable
Company Ltd.
China Energy
(Shanghai) 49,993,56 49,993,564.1 Not expected to
Industrial Co., 4.16 6 be recoverable
Ltd.
Shenzhen
Kanghongxing
Intelligent 36,211,057.55 36,211,057.55 100.00
Technology Co.,
Ltd.
Others 39,313,773.86 39,253,485.85 99.85
Total 751,101,547.52 751,041,259.51 99.99 —
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
① In the portfolio, accounts receivable of provision for expected credit loss made by aging
Ending balance
Aging
Provision percentage
Balance Provision for bad debts
(%)
Within 1 year 87,122,029.63 1,777,289.39 2.04
Over 5 years 111,383,563.30 111,383,563.30 100.00
Total 243,003,431.27 154,701,363.19 63.66
② In the portfolio, accounts receivable of provision for expected credit loss made by other
methods
Ending balance
Aging
Provision for bad Provision percentage
Balance
debts (%)
Related party portfolio 3,457,669,126.96
Total 3,457,669,126.96
(3) Provision for bad debts of accounts receivable set aside, recovered or reversed
in the current year
Change in the current year
Category Beginning balance
Recovered or
Provision
reversed
Provision for bad debts of
accounts receivable 892,187,676.26 15,735,211.50 2,288,781.96
Total 892,187,676.26 15,735,211.50 2,288,781.96
(Continued)
Change in the current year
Category Ending balance
Written-off Others
Provision for bad debts of
accounts receivable 905,634,105.80
Total 905,634,105.80
(4) Accounts receivable actually written off in the current year
There are no accounts receivable actually written off in the current year.
(5) Top five accounts receivable and contract assets in the ending balance
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
categorized by debtors
The total amount of the top five accounts receivable in the year-end balance categorized
by debtor in the current year was RMB 3,309,486,768.65, accounting for 74.34% of the
total year-end balance of accounts receivable. The corresponding total year-end balance
of provision for bad debts was RMB 298,280,558.37.
Item Ending balance Beginning balance
Interest receivable
Dividends receivable 394,828,312.64 397,729,468.60
Other receivables 6,169,721,184.70 7,812,366,963.81
Total 6,564,549,497.34 8,210,096,432.41
Investee Ending balance Beginning balance
Hong Kong Konka Co., Ltd. 114,828,312.64 117,729,468.60
Suining Konka Industrial Park Development
Co., Ltd. 280,000,000.00 280,000,000.00
Total 394,828,312.64 397,729,468.60
(1) Classified by account nature
Nature of funds Ending book balance Beginning book balance
Receivables from subsidiaries 7,338,448,596.60 7,470,528,350.51
Energy-saving subsidies receivable 141,549,150.00 141,549,150.00
Receivables from other related parties 3,643,705,051.48 2,217,059,558.78
Deposits, guarantees, and down payments 11,316,782.23 11,203,961.90
Others 54,245,272.51 51,145,919.15
Total 11,189,264,852.82 9,891,486,940.34
(2) Other receivables listed by aging
Aging Ending book balance Beginning book balance
Within 1 year (including 1 year) 2,468,208,504.58 2,833,825,882.55
Over 5 years 1,906,123,741.67 1,535,975,782.73
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Aging Ending book balance Beginning book balance
Total 11,189,264,852.82 9,891,486,940.34
(3) Classified presentation of other receivables by provisioning methods of bad
debts
Ending balance
Balance Provision for bad debts
Category
Provision Book value
Percentage
Amount Amount percentage
(%)
(%)
Provision for bad debts
by single item 5,578,850,648.69 49.86 4,974,026,480.15 89.16 604,824,168.54
Provision for bad debts
by portfolio
Of which: Aging portfolio 39,006,591.44 0.35 36,740,977.75 94.19 2,265,613.69
Low-risk portfolio 14,968,292.40 0.13 8,776,210.22 58.63 6,192,082.18
Related party portfolio 5,556,439,320.29 49.66 5,556,439,320.29
Subtotal of portfolio 5,610,414,204.13 50.14 45,517,187.97 0.81 5,564,897,016.16
Total 11,189,264,852.82 100.00 5,019,543,668.12 44.86 6,169,721,184.70
(Continued)
Beginning balance
Balance Provision for bad debts
Category
Provision Book value
Percentage
Amount Amount percentage
(%)
(%)
Provision for bad debts by
single item 2,346,639,698.77 23.72 2,030,143,279.98 86.51 316,496,418.79
Provision for bad debts by
portfolio
Of which: Aging portfolio 59,556,884.46 0.60 41,789,999.23 70.17 17,766,885.23
Low-risk portfolio 14,762,006.60 0.15 7,186,697.32 48.68 7,575,309.28
Related party portfolio 7,470,528,350.51 75.52 7,470,528,350.51
Subtotal of portfolio 7,544,847,241.57 76.28 48,976,696.55 0.65 7,495,870,545.02
Total 9,891,486,940.34 100.00 2,079,119,976.53 21.02 7,812,366,963.81
Ending balance
Aging
Provision for bad Provision percentage
Balance
debts (%)
Within 1 year 945,505,547.22 39,758.91
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Ending balance
Aging
Provision for bad Provision percentage
Balance
debts (%)
Over 5 years 83,727,017.45 42,192,364.83 50.39
Total 5,610,414,204.13 45,517,187.97 0.81
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
credit loss model
Phase I Phase II Phase III
Provision for bad Expected credit Expected credit loss
Expected credit Total
debts loss throughout the throughout the
loss for the next
duration (without duration (with credit
credit loss) impairment)
Balance as of
January 1, 2025 97,657.39 48,879,039.16 2,030,143,279.98 2,079,119,976.53
Balance as of
January 1, 2025 in
the current year
-- Transfer to Stage II -14,896.62 14,896.62
-- Transfer to Stage
III -13,938,000.00 13,938,000.00
-- Reversal to Stage
II
-- Reversal to Stage I
Provision in the
current year 39,758.91 14,353,567.19 2,929,945,200.17 2,944,338,526.27
Reversal in the
current year 82,760.77 3,832,082.99 3,914,843.76
Charge-off in the
current year
Write-off in the
current year
Other changes 9.08 9.08
Balance as of
December 31, 2025 39,758.91 45,477,429.06 4,974,026,480.15 5,019,543,668.12
Remarks: The first stage is that credit risk has not increased significantly since initial
recognition. For other receivables with an aging portfolio and a low-risk portfolio within one
year, the loss provision is measured according to the expected credit losses in the next 12
months.
The second stage is that credit risk has increased significantly since initial recognition but
credit impairment has not yet occurred. For other receivables with an aging portfolio and a
low-risk portfolio that exceed one year, the loss provision is measured based on the
expected credit losses for the entire duration.
The third stage is credit impairment after initial recognition. For other receivables with
credit impairment that have occurred, the loss provision is measured according to the
credit losses that have occurred throughout the duration.
(4) Provision for bad debts of other receivables set aside, recovered or reversed in
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
the current year
Change in the current year
Category Beginning balance
Recovered or
Provision
reversed
Provision for bad debts of
other receivables 2,079,119,976.53 2,944,338,526.27 3,914,843.76
Total 2,079,119,976.53 2,944,338,526.27 3,914,843.76
(Continued)
Change in the current year
Category Ending balance
Written-off Others
Provision for bad debts of other
receivables 9.08 5,019,543,668.12
Total 9.08 5,019,543,668.12
(5) Other receivables actually written off in the current year
No other receivables were actually written off in the current year.
(6) Other receivables with top five year-end balances categorized by debtors
The total amount of the top five other receivables in the year-end balance categorized by
debtors in the current year was RMB 6,877,609,289.97, accounting for 61.47% of the total
year-end balance of other receivables. The corresponding total year-end balance of
provisions for bad debts was RMB 2,874,590,635.73.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Ending balance Beginning balance
Item
Provision for
Balance Book value Balance Provision for impairment Book value
impairment
Investment in
subsidiaries 7,825,224,811.83 715,180,000.00 7,110,044,811.83 7,825,394,811.83 689,680,000.00 7,135,714,811.83
Investments in
associates and joint 3,101,020,668.93 2,264,032,106.38 836,988,562.55 3,522,936,610.99 663,595,371.27 2,859,341,239.72
ventures
Total 10,926,245,480.76 2,979,212,106.38 7,947,033,374.38 11,348,331,422.82 1,353,275,371.27 9,995,056,051.55
(1) Investment in subsidiaries
Provision for Changes in the current year Provision for
Investee Beginning balance impairment Ending balance
impairment
Unit (Book value) Beginning Increase in Decrease in Provision for (Book value)
Others Ending balance
balance investment investment impairment
Konka Venture 2,550,000.00 2,550,000.00
Anhui Konka 122,780,937.98 122,780,937.98
Konka Electronic
Material 300,000,000.00 300,000,000.00
Konka Unifortune 15,300,000.00 15,300,000.00
Dongguan Konka 274,783,988.91 274,783,988.91
Konka Europe 3,637,470.00 3,637,470.00
Telecommunication
Technology 360,000,000.00 360,000,000.00
Development of
science and 100,000,000.00 100,000,000.00
technology industry
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Provision for Changes in the current year Provision for
Investee Beginning balance impairment Ending balance
impairment
Unit (Book value) Beginning Increase in Decrease in Provision for (Book value)
Others Ending balance
balance investment investment impairment
Anhui Tongchuang 779,702,612.22 779,702,612.22
Konka
Communication 30,749,800.00 30,749,800.00
Pengrun Technology 25,500,000.00 25,500,000.00 25,500,000.00
Beijing Konka
Electronics 200,000,000.00 200,000,000.00
Konka Circuit 740,752,721.18 4,930,000.00 745,682,721.18
Hong Kong Konka 781,828.61 781,828.61
Konka Investment 500,000,000.00 500,000,000.00
Electronics
Technology 1,000,000,000.00 1,000,000,000.00
Shanghai Konka 40,000,000.00 40,000,000.00
Jiangxi Konka 689,680,000.00 689,680,000.00
Shenzhen Nianhua 30,000,000.00 30,000,000.00
Shenzhen Konka
Semiconductor 100,000,000.00 100,000,000.00
Ji'an Konka 50,000.00 50,000.00
Suining Konka
Industrial Park 200,000,000.00 200,000,000.00
Kangrong Jiayuan 5,100,000.00 5,100,000.00
Suining Electronic
Technology 200,000,000.00 200,000,000.00
Innovation
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Provision for Changes in the current year Provision for
Investee Beginning balance impairment Ending balance
impairment
Unit (Book value) Beginning Increase in Decrease in Provision for (Book value)
Others Ending balance
balance investment investment impairment
Shenzhen Chuangzhi
Electrical Appliances 10,000,000.00 10,000,000.00
Chongqing
Optoelectronic 1,400,000,000.00 1,400,000,000.00
Technology
Xinying
Semiconductor 192,520,000.00 192,520,000.00
Ningbo Kanghanrui
Electric Appliances 90,000,000.00 90,000,000.00
Suining Jiarun
Property 10,000,000.00 10,000,000.00
Yibin Kangrun 67,000,000.00 67,000,000.00
Hainan Konka
Technology 9,205,452.93 9,205,452.93
Konka Cross-border
(Hebei) 50,000,000.00 50,000,000.00
Konka Central China 30,000,000.00 30,000,000.00
Guizhou Kanggui
Materials 28,000,000.00 28,000,000.00
Nantong Kanghai 15,300,000.00 15,300,000.00
Jiangxi Konka
Technology Park 50,000,000.00 50,000,000.00
Shangrao Konka
Electronic
Technology 30,000,000.00 30,000,000.00
Innovation
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Provision for Changes in the current year Provision for
Investee Beginning balance impairment Ending balance
impairment
Unit (Book value) Beginning Increase in Decrease in Provision for (Book value)
Others Ending balance
balance investment investment impairment
Xi'an Kanghong
Technology Industry 12,000,000.00 12,000,000.00
Xi'an Konka
Intelligent 50,000,000.00 50,000,000.00
Technology
Songyang Konka
Intelligent 30,000,000.00 30,000,000.00
Konka North China 30,000,000.00 30,000,000.00
Total 7,135,714,811.83 689,680,000.00 4,930,000.00 5,100,000.00 25,500,000.00 7,110,044,811.83 715,180,000.00
(2) Investment in associates
Changes in the current year
Provision for
Beginning balance impairment Gains/losses on Adjustments to
Investee Decrease
(Book value) Beginning Increase in investment other
balance investment Investment recognized under comprehensive
the equity method income
Anhui Kaikai Shijie E-commerce Co., Ltd. 39,191,473.50 49,583,326.00 -2,938,902.56 57,037.58
Kunshan Kangsheng Investment
Development Co., Ltd. 40,891,367.28 -5,388,016.54
Shaanxi Silk Road Yunqi Intelligent
Technology Co., Ltd. 3,467,934.60 -3,315,263.80
Shenzhen Kanghongxing Intelligent
Technology Co., Ltd. 5,158,909.06
Shenzhen Zhongkang Beidou Technology
Co., Ltd.
Shenzhen Yaode Technology Co., Ltd. 214,559,469.35
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Changes in the current year
Provision for
Beginning balance impairment Gains/losses on Adjustments to
Investee Decrease
(Book value) Beginning Increase in investment other
balance investment Investment recognized under comprehensive
the equity method income
Wuhan Tianyuan Group Co., Ltd. 545,842,155.57 239,447,355.00
Chuzhou Konka Technology Industry
Development Co., Ltd.
Chuzhou Kangjin Health Industry
Development Co., Ltd. 92,285,525.83 -32,283,182.56
Nantong Konka Technology Industrial Park
Operation Management Co., Ltd. 5,002,208.91 -5,002,208.91
Chuzhou Kangxin Health Industry
Development Co., Ltd. 6,203,105.97 -1,841,318.73
Dongguan Guankang Yuhong Investment
Co., Ltd.
Econ Technology Co., Ltd. 714,353,682.97 278,887,555.25 -5,557,305.38
Dongguan Kangjia New Materials Technology
Co., Ltd. 3,231,195.79 -1,323,182.99
Chongqing Ypfun Technology Co., Ltd. 1,354,769,939.92 23,376,100.00 200,000,000.00
Yantai Kangyun Industrial Development Co.,
Ltd.
E3 (Hainan) Technology Co., Ltd. 4,574,609.73 8,000,000.00
Shenzhen Konka Jiapin Intelligent Electrical
Apparatus Technology Co., Ltd. 5,896,518.07 -3,447,912.19
Shenzhen Konka E-display Intelligent
Technology Co., Ltd. 24,007,406.43 3,564,368.70 -136,519.75
Chongqing Yuanlv Benpao Real Estate Co.,
Ltd.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Changes in the current year
Provision for
Beginning balance impairment Gains/losses on Adjustments to
Investee Decrease
(Book value) Beginning Increase in investment other
balance investment Investment recognized under comprehensive
the equity method income
Shenzhen Kangpeng Digital Technology Co.,
Ltd. 1,310,766.92 -330,466.61
Wuhan Kangtang Information Technology
Co., Ltd. 15,853,661.78 -14,876,432.16
Sichuan Chengrui Real Estate Co., Ltd.
Sichuan Hongxinchen Real Estate
Development Co., Ltd. 2,459,686.45
Shenzhen Kangyue Industrial Co., Ltd. 230,011.61
Konka Huanjia Environmental Protection
Technology Co., Ltd. 91,800,000.00
Kangrong Jiayuan Technology (Zhejiang) Co.,
Ltd. 1,000,000.00 2,643.86
Total 2,859,341,239.72 663,595,371.27 201,000,000.00 247，447,355.00 -72,737,179.87 -79,482.17
(Continued)
Changes in the current year
Provision for
Cash dividends Ending balance
Investee impairment
Changes in or profits Provision for (Book value)
Others Ending balance
other equity declared to be impairment
distributed
Anhui Kaikai Shijie E-commerce Co., Ltd. 36,309,608.52 85,892,934.52
Kunshan Kangsheng Investment
Development Co., Ltd. 35,503,350.74
Shaanxi Silk Road Yunqi Intelligent 152,670.80
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Changes in the current year
Provision for
Cash dividends Ending balance
Investee impairment
Changes in or profits Provision for (Book value)
Others Ending balance
other equity declared to be impairment
distributed
Technology Co., Ltd.
Shenzhen Kanghongxing Intelligent
Technology Co., Ltd. 5,158,909.06
Shenzhen Zhongkang Beidou Technology
Co., Ltd.
Shenzhen Yaode Technology Co., Ltd. 214,559,469.35
Wuhan Tianyuan Group Co., Ltd. 8,618,395.70 -297,776,404.87
Chuzhou Konka Technology Industry
Development Co., Ltd.
Chuzhou Kangjin Health Industry
Development Co., Ltd. 60,002,343.27
Nantong Konka Technology Industrial Park
Operation Management Co., Ltd.
Chuzhou Kangxin Health Industry
Development Co., Ltd. 4,361,787.24 4,361,787.24
Dongguan Guankang Yuhong Investment
Co., Ltd.
Econ Technology Co., Ltd. 326,506.69 708,469,870.90 279,214,061.94
Dongguan Kangjia New Materials Technology
Co., Ltd. 1,908,012.80 1,908,012.80
Chongqing Ypfun Technology Co., Ltd. 301,193.49 1,555,071,133.41 1,578,447,233.41
Yantai Kangyun Industrial Development Co.,
Ltd.
Notes to Financial Statements of Konka Group Co., Ltd.
From January 1, 2025 to December 31, 2025
(Amounts are expressed in RMB unless otherwise stated)
Changes in the current year
Provision for
Cash dividends Ending balance
Investee impairment
Changes in or profits Provision for (Book value)
Others Ending balance
other equity declared to be impairment
distributed
E3 (Hainan) Technology Co., Ltd. 3,425,390.27
Shenzhen Konka Jiapin Intelligent Electrical
Apparatus Technology Co., Ltd. 2,448,605.88
Shenzhen Konka E-display Intelligent
Technology Co., Ltd. 27,435,255.38
Chongqing Yuanlv Benpao Real Estate Co.,
Ltd.
Shenzhen Kangpeng Digital Technology Co.,
Ltd. 980,300.31
Wuhan Kangtang Information Technology
Co., Ltd. 977,229.62
Sichuan Chengrui Real Estate Co., Ltd.
Sichuan Hongxinchen Real Estate
Development Co., Ltd. 2,459,686.45 2,459,686.45
Shenzhen Kangyue Industrial Co., Ltd. 230,011.61
Konka Huanjia Environmental Protection
Technology Co., Ltd. 91,800,000.00
Kangrong Jiayuan Technology (Zhejiang) Co.,
Ltd. 16,291.79 1,018,935.65
Total 301,193.49 8,618,395.70 1,600,436,735.11 294,334,722.81 836,988,562.55 2,264,032,106.38
(1) Operating revenue and cost of sales
Amount incurred in the current year Amount incurred last year
Item
Income Cost Income Cost
Principal
activity 1,354,862,479.09 1,382,585,906.19 1,773,409,740.83 1,908,349,581.90
Other 132,961,429.47 63,913,533.56 134,714,183.27 66,145,019.39
Total 1,487,823,908.56 1,446,499,439.75 1,908,123,924.10 1,974,494,601.29
(2) Information in relation to the transaction price apportioned to the residual
contract performance obligation
At the end of the current year, the amount of revenue corresponding to the performance
obligations for which contracts have been signed but have not yet been performed or
have not yet been fully performed is RMB 25,285,546.17, which is expected to be
recognized as revenue in 2026.
Amount incurred in the Amount incurred last
Item
current year year
Long-term equity investment income calculated by the cost
method
Returns on long-term equity investments calculated by the
equity method -72,737,179.87 -29,330,307.37
Return on investment arising from the disposal of long-term
equity investments 7,970,560.10 78,445,940.06
Investment income from financial assets held for trading
during the holding period 420,553.86 4,240,444.62
Investment income from disposal of financial assets held for
trading -1,807,577.63 -26,511,417.25
Gains from remeasurement of residual equity at fair value
after losing control
Interest income from debt investments during the holding
period 5,360,451.37 5,688,905.13
Income from the derecognition of financial assets at amortized
cost -226,103.98 -1,332,512.07
Conversion of long-term equity investments accounted for by
the equity method to financial assets 655,666,680.89
Others
Total 594,647,384.74 31,201,053.12
Supplementary Materials to the Financial Statements
Amount of the current
Item Description
year
Gains/losses on disposal of non-current assets (including the portion
offset for provisions for asset impairment) 21,769,444.15
Government grants included in current gains/losses (except for
government subsidies that are closely related to the Company's normal
business operation, comply with national policies and are enjoyed in -560,729,053.82
accordance with defined criteria, and have a continuing impact on the
Company's gains/losses)
Gains/losses 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 that arise in the -455,947,543.58
Company’s ordinary course of business)
Funds occupation fee charged to non-financial enterprises included in
current gains/losses
Gains/losses on entrusting others with investments or asset
management
Gains/losses on loan entrustment 86,761,707.56
Losses on assets resulted from force majeure factors such as natural
disasters
Reversed portions of impairment allowances for receivables which are
tested individually for impairment 13,649,084.68
Gains arising from business combination when the investment cost is
less than the recognized fair value of net assets of the investee
Current net gains/losses of subsidiaries acquired in business
combination under the same control from period-beginning to
combination date
Gains/losses on non-monetary asset swap
Gains/losses on debt restructuring
Non-recurring expenses incurred by the enterprise as a result of the
discontinuation of a related operating activity, such as expenses for
relocating employees
One-time impact on current gains/losses due to adjustments in tax,
accounting and other laws and regulations
One-time recognition of share-based payment expense due to
cancellation and modification of equity incentive plans
Cash-settled share-based payments, gains/losses arising from changes
in the fair value of employee compensation payable after the date of
exercisability
Gains/losses on change in fair value of investment property subject to
follow-up measurement at fair value method
Gains from transactions at significantly unfair prices
Gains/losses arising from contingencies unrelated to the normal
operation of the Company's business
Custodian fees earned from entrusted operation
Amount of the current
Item Description
year
Non-operating revenue and expense other than the above -433,788,481.56
Other gains/losses that meet the definition of non-recurring gains/losses -1,069,326,647.31
Subtotal -2,397,611,489.88
Less: Income tax effects 1,029,921.23
Minority equity effects (after tax) -197,080,357.87
Total -2,201,561,053.24 —
（1）Specific Information of Other Profit and Loss Items Complying with the Definition of
Non-recurring Profit and Loss
项目 金额 原因
During the reporting period, the Company changed the
accounting treatment method for its equity interest in
Wuhan Tianyuan Group Co., Ltd. from long-term equity
Wuhan Tianyuan Group Co., Ltd. 655,666,680.89
investments (equity method) to trading financial assets,
resulting in the recognition of non-recurring gains and
losses
During the reporting period, the loss arising from the
claims due from loss-making subsidiaries in excess of
their net assets recognized by the Company was
Excess losses of subsidiaries -1,560,621,492.59
included in the "net profit attributable to owners of the
parent company", thereby generating non-recurring
gains and losses
Interest on equity repurchase During the reporting period, the Company accrued
-164,371,835.61
payments interest on equity repurchase payments
（ 2 ） The items that are not listed in the Explanatory Announcement No. 1 on
Information Disclosure by Companies Offering Securities to the Public - Non-recurring
gains/losses (Revised in 2023) but recognized by the Company as non-recurring
gains/losses items and involving significant amounts, and listed non-recurring
gains/losses items recognized as recurring gains/losses items
Item Amount Reason
Government grants closely related to
the normal operation of the Company's
Tax rebates on software and VAT business, which comply with national
additional deduction policies and are received continuously
based on a certain standard quota or
quantitative amount
EPS (RMB/share)
Weighted average
Profit for the Reporting Period
Return on net assets (%) Basic earnings per Diluted earnings
share per share
Net profit attributable to ordinary
shareholders of the parent Not applicable -5.2254 -5.2254
company
EPS (RMB/share)
Weighted average
Profit for the Reporting Period
Return on net assets (%) Basic earnings per Diluted earnings
share per share
Net profit attributable to ordinary
shareholders of the parent
Not applicable -4.3111 -4.3111
company before non-recurring
gains/losses
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