Konka Group Co., Ltd.
FINANCIAL REPORT
For the Six Months Ended 30 June 2026
（Un-audited）
Legal representative: Wu Jianjun
Head of the accounting work:Yu Huiliang
Head of the accounting department: WANG Linhu
English Translation for Reference Only. Should there be any discrepancy between the two versions,
the Chinese version shall prevail.
I. Independent Auditor’s Report
Whether the semi-annual report has been audited
□ Yes √ No
The semi-annual financial report of the Company was unaudited.
II. Financial Statements
Unit of the currency for the financial statements and the notes thereto: RMB
Prepared by: Konka Group Co., Ltd. June 30, 2026
Unit: RMB
Item Ending balance Beginning balance
Current assets:
Monetary assets 2,687,943,074.33 6,313,941,885.05
Settlement reserve
Interbank loans granted
Trading financial assets 138,775,929.60 202,027,000.00
Derivative financial assets
Notes receivable 156,921,039.72 77,316,985.56
Accounts receivable 1,036,383,168.85 1,086,929,012.15
Receivables financing 95,040,616.25 155,957,556.43
advances to suppliers 40,491,336.94 96,105,739.60
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 947,515,719.09 942,267,792.91
Including: Interest receivable
Dividends receivable
Financial assets purchased under resale agreements
Inventories 1,474,853,179.97 1,662,246,630.58
Including: Data resources
Contract assets 1,779,920.48 1,892,306.30
Assets held for sale
Current portion of non-current assets
Other current assets 719,531,026.32 761,567,941.76
Total current assets 7,299,235,011.55 11,300,252,850.34
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 2,423,931,783.68 2,026,038,156.99
Other equity instrument investments 10,213,810.20 10,213,810.20
Other non-current financial assets 1,041,679,477.77 1,161,781,213.03
Investment properties 960,362,019.52 866,051,475.13
Fixed assets 4,158,003,825.17 4,405,958,959.37
Construction in progress 517,665,830.25 516,337,481.93
Productive biological assets
Oil and gas assets
Right-of-use assets 103,619,972.26 130,076,544.83
Intangible assets 756,880,492.41 772,231,958.52
Including: Data resources
Development costs
Including: Data resources
Goodwill
Long-term deferred expenses 417,125,489.68 453,962,117.69
deferred tax assets 107,731,524.60 106,993,555.63
Other non-current assets 622,331,617.60 601,006,137.59
Total non-current assets 11,119,545,843.14 11,050,651,410.91
Total assets 18,418,780,854.69 22,350,904,261.25
Current liabilities:
Short-term borrowings 2,472,464,288.88 4,575,915,552.66
Borrowings from the central bank
Interbank loans obtained
Financial liabilities held for trading
Derivative financial liabilities
Notes payable 739,788,094.34 943,817,767.91
Accounts payable 1,800,540,624.79 1,977,736,371.29
Advances from customers 3,027,128.01 3,426,361.65
Contract liabilities 168,122,219.32 256,506,499.39
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 237,633,221.18 223,175,513.10
Taxes payable 48,221,985.90 71,276,255.42
Other payables 4,345,738,069.13 6,565,100,788.16
Including: Interest payable
Dividends payable
Handling charges and commissions payable
Reinsurance payables
Liabilities held for sale
Non-current liabilities maturing within one year 2,094,203,324.48 3,650,840,615.21
Other current liabilities 39,035,790.28 46,377,272.29
Total current liabilities 11,948,774,746.31 18,314,172,997.08
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 10,124,730,184.53 6,537,926,737.54
Bonds payable 788,721,094.30 1,596,674,876.37
Including: Preferred shares
Perpetual bonds
Lease liabilities 75,622,339.07 96,858,968.75
Long-term payables 1,152,239.17 2,033,227.02
Long-term employee benefits payable 4,477,769.97 4,519,491.87
Estimated liabilities 851,290,214.61 852,722,866.97
Deferred income 405,756,847.37 408,175,795.51
deferred tax liabilities 95,997,312.74 114,475,054.80
Other non-current liabilities 201,898,911.52 283,739,354.36
Total non-current liabilities 12,549,646,913.28 9,897,126,373.19
Total liabilities 24,498,421,659.59 28,211,299,370.27
Owners' equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments 5,000,000,000.00 5,000,000,000.00
Including: Preferred shares
Perpetual bonds 5,000,000,000.00 5,000,000,000.00
Capital reserves 406,579,870.80 406,579,870.80
Less: Treasury stock
Other comprehensive income 22,268,973.36 -1,866,392.91
Specific reserve 21,613,041.45 17,197,144.62
Surplus reserves 1,244,180,364.24 1,244,180,364.24
General risk reserves
Retained earnings -15,329,888,380.30 -15,157,108,084.70
Total equity attributable to owners of the parent company -6,227,300,722.45 -6,083,071,689.95
Minority equity 147,659,917.55 222,676,580.93
Total owners’ equity -6,079,640,804.90 -5,860,395,109.02
Total liabilities and owners' equity 18,418,780,854.69 22,350,904,261.25
Legal representative: Wu Jianjun Chief Finance Officer: Yu Huiliang Head of
Accounting Agency: Wang Lihu
Unit: RMB
Item Ending balance Beginning balance
Current assets:
Monetary assets 730,117,099.49 4,870,422,479.05
Trading financial assets 138,775,929.60 202,027,000.00
Derivative financial assets
Notes receivable 50,031,888.30
Accounts receivable 2,644,190,616.66 3,546,031,483.05
Receivables financing
advances to suppliers 4,638,856,661.94 3,312,810,262.72
Other receivables 6,786,028,631.88 6,564,549,497.34
Including: Interest receivable
Dividends receivable 390,420,640.53 394,828,312.64
Inventories 42,950,332.94 165,333,867.28
Including: Data resources
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 271,669,438.70 287,171,986.89
Total current assets 15,302,620,599.51 18,948,346,576.33
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 7,925,699,157.28 7,947,033,374.38
Other equity instrument investments 10,213,810.20 10,213,810.20
Other non-current financial assets 202,032,067.00 202,032,067.00
Investment properties 573,889,747.03 586,120,252.57
Fixed assets 366,046,154.72 375,367,331.52
Construction in progress 9,714,015.01 13,474,434.20
Productive biological assets
Oil and gas assets
Right-of-use assets 285,787.48 347,027.65
Intangible assets 19,793,958.62 23,160,095.54
Including: Data resources
Development costs
Including: Data resources
Goodwill
Long-term deferred expenses 16,414,046.28 20,782,020.29
deferred tax assets
Other non-current assets 1,507,362.30 1,467,871.30
Total non-current assets 9,125,596,105.92 9,179,998,284.65
Total assets 24,428,216,705.43 28,128,344,860.98
Current liabilities:
Short-term borrowings 1,481,999,969.45 1,519,153,294.44
Financial liabilities held for trading
Derivative financial liabilities
Notes payable 1,381,306.52 25,163,192.12
Accounts payable 1,627,965,735.26 3,796,563,874.96
Advances from customers
Contract liabilities 3,375,152,448.27 2,699,707,593.73
Employee benefits payable 36,994,007.22 37,672,994.15
Taxes payable 8,185,920.33 25,675,833.17
Other payables 5,320,571,757.75 7,700,994,198.52
Including: Interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities maturing within one year 1,910,377,191.90 3,387,594,563.88
Other current liabilities 6,339,303.75 7,497,034.93
Total current liabilities 13,768,967,640.45 19,200,022,579.90
Non-current liabilities:
Long-term borrowings 9,031,540,000.00 5,535,100,000.19
Bonds payable 788,721,094.30 1,596,674,876.37
Including: Preferred shares
Perpetual bonds
Lease liabilities 300,661.51 367,441.04
Long-term payables
Long-term employee benefits payable
Estimated liabilities 346,428,842.60 346,428,842.60
Deferred income 31,572,314.78 33,164,619.14
deferred tax liabilities 31,376,895.49 42,603,809.42
Other non-current liabilities 53,070,823.11 52,346,890.08
Total non-current liabilities 10,283,010,631.79 7,606,686,478.84
Total liabilities 24,051,978,272.24 26,806,709,058.74
Owners' equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments 5,000,000,000.00 5,000,000,000.00
Including: Preferred shares
Perpetual bonds 5,000,000,000.00 5,000,000,000.00
Capital reserves 214,160,914.80 214,160,914.80
Less: Treasury stock
Other comprehensive income -1,360,579.00 -1,360,579.00
Specific reserve
Surplus reserves 1,260,024,039.76 1,260,024,039.76
Retained earnings -8,504,531,350.37 -7,559,133,981.32
Total owners’ equity 376,238,433.19 1,321,635,802.24
Total liabilities and owners' equity 24,428,216,705.43 28,128,344,860.98
Unit: RMB
Item First half of 2026 First half of 2025
I. Total operating revenue 3,851,571,370.34 5,247,507,849.27
Including: Operating revenue 3,851,571,370.34 5,247,507,849.27
Interest revenue
Premiums earned
Service fee and commission income
II. Total operating costs 4,629,629,377.57 6,113,653,586.34
Including: Cost of sales 3,604,823,925.05 4,982,943,214.69
Interest expense
Service fee and commission expense
Surrenders
Net claims paid
Net change in insurance reserves
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 49,683,161.07 52,857,828.76
Selling expense 208,584,200.47 305,525,414.66
Administrative expense 303,383,408.92 273,646,470.76
R&D expense 168,365,167.60 187,951,295.68
Finance costs 294,789,514.46 310,729,361.79
Including: Interest expense 312,546,386.07 350,360,105.59
Interest revenue 105,092,356.22 72,105,599.49
Add: Other income 19,188,325.77 40,970,737.77
Investment income ("-" for loss) 430,062,360.56 540,347,018.43
Including: Investment income from associates and joint ventures 428,284,698.54 -42,498,270.14
Income from the derecognition of financial assets at amortized
-1,192,931.11 -2,541,005.90
cost
Exchange gains ("-" for loss)
Net gains on exposure hedges ("-" for loss)
Gains from changes in fair value ("-" for loss) 62,041,331.96 173,409,194.85
Credit impairment loss ("-" for loss) 26,251,836.14 -117,092,417.76
Asset impairment loss ("-" for loss) -34,741,399.30 -85,403,855.86
Gains from disposal of assets ("-" for loss) -105,935.16 31,513,481.94
III. Operating profit ("-" for loss) -275,361,487.26 -282,401,577.70
Add: non-operating revenue 6,832,779.85 9,302,209.51
Less: Non-operating expenses 3,897,492.47 3,650,200.98
IV. Total profit ("-" for total loss) -272,426,199.88 -276,749,569.17
Less: Income tax expense -8,544,396.99 220,369,507.92
V. Net profit ("-" for net loss) -263,881,802.89 -497,119,077.09
(I) By operating continuity
(II) By ownership
-172,780,295.60 -383,328,019.43
for net loss)
VI. Other comprehensive income (net of tax) 49,690,521.61 -3,731,546.01
Other comprehensive income attributable to owners of the parent
company (net of tax)
(I) Other comprehensive income not reclassified to gains/losses
under the equity method
(II) Other comprehensive income reclassified to gains/losses 24,135,366.27 -3,317,264.68
the equity method
obligations
financial assets
obligations
currency-denominated financial statements
Other comprehensive income attributable to the minority
shareholders (net of tax)
VII. Total comprehensive income -214,191,281.28 -500,850,623.10
Total comprehensive income attributable to owners of the parent
-148,644,929.33 -386,645,284.11
company
Total comprehensive income attributable to non-controlling
-65,546,351.95 -114,205,338.99
interests
VIII. Earnings per share:
(I) Basic earnings per share -0.0718 -0.1592
(II) Diluted earnings per share -0.0718 -0.1592
Legal representative: Wu Jianjun Chief Finance Officer: Yu Huiliang Head of
Accounting Agency: Wang Lihu
Unit: RMB
Item First half of 2026 First half of 2025
I. Operating revenue 815,867,619.82 568,971,528.57
Less: Cost of sales 784,529,846.90 543,252,254.22
Taxes and surcharges 7,399,143.62 8,147,414.25
Selling expense 21,190,100.86 40,412,184.01
Administrative expense 71,903,221.22 75,195,768.11
R&D expense 9,974,438.99 10,354,660.50
Finance costs 290,324,999.08 265,906,735.02
Including: Interest expense 265,183,656.17 346,218,969.22
Interest revenue 59,960,215.77 106,403,950.57
Add: Other income 2,158,043.46 6,411,326.39
Investment income ("-" for loss) -8,949,477.75 581,639,183.08
Including: Investment income from associates and joint ventures -5,463,564.17 -11,151,203.25
Income from the derecognition of financial assets at amortized
-226,103.98
cost (“-” for loss)
Net gains on exposure hedges ("-" for loss)
Gains from changes in fair value ("-" for loss) 52,832,385.60 177,700,537.82
Credit impairment loss ("-" for loss) -614,177,400.82 -2,794,258.52
Asset impairment loss ("-" for loss) -18,588,430.61 3,124,627.22
Gains from disposal of assets ("-" for loss) 11,624,645.93
II. Operating profit ("-" for loss) -956,179,010.97 403,408,574.38
Add: non-operating revenue -105,540.28 536,714.33
Less: Non-operating expenses 339,731.73 642,354.53
III. Total profit ("-" for total loss) -956,624,282.98 403,302,934.18
Less: Income tax expense -11,226,913.93 210,569,242.38
IV. Net profit ("-" for net loss) -945,397,369.05 192,733,691.80
(I) Net profit from continuing operations ("-" for net loss) -945,397,369.05 192,733,691.80
(II) Net profit from discontinued operations ("-" for net loss)
V. Other comprehensive income (net of tax)
(I) Other comprehensive income not reclassified to gains/losses
under the equity method
(II) Other comprehensive income reclassified to gains/losses
the equity method
obligations
financial assets
obligations
currency-denominated financial statements
VI. Total comprehensive income -945,397,369.05 192,733,691.80
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
Unit: RMB
Item First half of 2026 First half of 2025
I. Cash flows from operating activities:
Proceeds from the sale of commodities and rendering of services 3,113,799,133.37 4,368,084,284.49
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 in proceeds received on original insurance contracts
Net proceeds from reinsurance
Net increase in deposits and investments of policy holders
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 79,993,694.96 56,567,647.38
Cash generated from other operating activities 229,303,501.81 215,519,884.28
Subtotal of cash generated from operating activities 3,423,096,330.14 4,640,171,816.15
Cash paid for commodities and services 2,922,027,764.37 4,056,223,786.07
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 656,326,369.69 735,398,262.13
Taxes paid 81,667,301.31 172,911,436.91
Cash used in other operating activities 299,229,566.16 351,261,761.97
Subtotal of cash used in operating activities 3,959,251,001.53 5,315,795,247.08
Net cash generated from/used in operating activities -536,154,671.39 -675,623,430.93
II. Cash flows from investing activities:
Proceeds from disinvestment 260,473,243.54 210,644,253.53
Return on investment in cash 2,772,232.30 12,662,010.65
Net proceeds from the disposal of fixed assets, intangible assets
and other long-lived assets
Net proceeds from the disposal of subsidiaries and other business
units
Cash generated from other investing activities 858,150.68
Subtotal of cash generated from investing activities 265,443,719.74 302,300,939.74
Payments in cash for the acquisition of fixed assets, intangible
assets and other long-lived assets
Cash paid for investments
Net increase in pledged loans granted
Net payments in cash for the acquisition of subsidiaries and other
business units
Cash used in other investing activities 48,483.53 21,122,140.00
Subtotal of cash used in investing activities 79,221,807.91 251,601,910.06
Net cash generated from/used in investing activities 186,221,911.83 50,699,029.68
III. Cash flows from financing activities:
Proceeds in cash from disinvestment 3,000,000.00
Including: Capital contributions by non-controlling interests to
subsidiaries
Borrowings raised in cash 5,830,707,833.34 5,540,288,536.51
Cash generated from other financing activities 1,136,592,037.28 1,386,679,814.26
Subtotal of cash generated from financing activities 6,967,299,870.62 6,929,968,350.77
Repayment of borrowings 6,657,582,475.33 5,026,999,842.01
Cash payments for distribution of dividends or profit and interest 285,802,000.23 268,919,859.68
Including: Dividends and profits paid to minority shareholders by
subsidiaries
Cash used in other financing activities 2,806,431,209.99 1,296,921,506.67
Subtotal of cash used in financing activities 9,749,815,685.55 6,592,841,208.36
Net cash generated from/used in financing activities -2,782,515,814.93 337,127,142.41
IV. Effect of foreign exchange rates changes on cash and cash
-12,730,906.25 7,018,961.86
equivalents
V. Net increase in cash and cash equivalents -3,145,179,480.74 -280,778,296.98
Add: Cash and cash equivalents, beginning of the period 5,020,469,510.26 2,783,177,476.45
VI. Cash and cash equivalents, end of the period 1,875,290,029.52 2,502,399,179.47
Unit: RMB
Item First half of 2026 First half of 2025
I. Cash flows from operating activities:
Proceeds from the sale of commodities and rendering of services 3,179,734,932.31 1,982,717,488.59
Tax rebates 9,894,201.88 0.00
Cash generated from other operating activities 20,051,778.28 52,168,761.02
Subtotal of cash generated from operating activities 3,209,680,912.47 2,034,886,249.61
Cash paid for commodities and services 3,558,920,511.97 2,346,004,439.65
Cash paid to and for employees 61,365,101.86 70,698,995.67
Taxes paid 5,798,790.75 8,574,471.84
Cash used in other operating activities 131,545,018.08 199,281,847.85
Subtotal of cash used in operating activities 3,757,629,422.66 2,624,559,755.01
Net cash generated from/used in operating activities -547,948,510.19 -589,673,505.40
II. Cash flows from investing activities:
Proceeds from disinvestment 113,015,103.00 209,745,654.53
Return on investment in cash 2,772,232.30 11,248,820.28
Net proceeds from the disposal of fixed assets, intangible assets
and other long-lived assets
Net proceeds from the disposal of subsidiaries and other business
units
Cash generated from other investing activities 1,088,681,021.48 939,791,023.76
Subtotal of cash generated from investing activities 1,204,635,643.18 1,188,055,294.30
Payments in cash for the acquisition of fixed assets, intangible
assets and other long-lived assets
Cash paid for investments 3,334,800.00
Net payments in cash for the acquisition of subsidiaries and other
business units
Cash used in other investing activities 1,848,553,286.99 767,252,140.00
Subtotal of cash used in investing activities 1,852,279,065.42 770,506,090.15
Net cash generated from/used in investing activities -647,643,422.24 417,549,204.15
III. Cash flows from financing activities:
Proceeds in cash from disinvestment
Borrowings raised in cash 4,979,000,000.00 4,003,609,738.88
Cash generated from other financing activities 3,566,657,077.42 4,122,175,002.73
Subtotal of cash generated from financing activities 8,545,657,077.42 8,125,784,741.61
Repayment of borrowings 5,081,184,583.33 3,579,806,940.27
Cash payments for distribution of dividends or profit and interest 268,099,865.22 296,315,030.56
Cash used in other financing activities 5,894,094,807.71 4,068,154,539.15
Subtotal of cash used in financing activities 11,243,379,256.26 7,944,276,509.98
Net cash generated from/used in financing activities -2,697,722,178.84 181,508,231.63
IV. Effect of foreign exchange rates changes on cash and cash
-3,563,669.90 2,283,185.17
equivalents
V. Net increase in cash and cash equivalents -3,896,877,781.17 11,667,115.55
Add: Cash and cash equivalents, beginning of the period 4,224,451,561.79 1,581,749,278.38
VI. Cash and cash equivalents, end of the period 327,573,780.62 1,593,416,393.93
Current amount
Unit: RMB
First half of 2026
Equity attributable to owners of the parent company
Other equity
instruments
P
r
ef
Item e Less Gene
rr : Other ral Ot Minority equity Total owners’ equity
Share capital e Ot Capital reserves Trea comprehensive Specific reserve Surplus reserves risk Retained earnings her Subtotal
Perpetua sury income reser s
d her
l bonds stock ves
s s
h
a
r
e
s
I. Balance as at the end of the -15,157,108,084.7
previous year 0
Add: Changes in accounting
policies
Correction of previous error
Others
II. Balance at the beginning of the -15,157,108,084.7
year 0
III. Changes in the current period
("-" for decrease)
(I) Total comprehensive income 24,135,366.27 -172,780,295.60 -148,644,929.33 -65,546,351.95 -214,191,281.28
(II) Capital increased and reduced
-11,000,000.00 -11,000,000.00
by the owner
-11,000,000.00 -11,000,000.00
owners
other equity instruments
payments included in owners'
equity
(III) Profit distribution
reserves
reserves
shareholders)
(IV) Transfers within owners’ equity
capital) from capital reserves
capital) from surplus reserves
schemes transferred to retained
earnings
converted into retained earnings
(V) Special reserves 4,415,896.83 4,415,896.83 1,529,688.57 5,945,585.40
period
(VI) Others
IV. Balance at the end of the 5,000,0
current period 2,407,945,408.00 00,000. 406,579,870.80 22,268,973.36 21,613,041.45 -6,227,300,722.45 -6,079,640,804.90
Amount of last year
Unit: RMB
First half of 2025
Equity attributable to owners of the parent company
Other equity
instruments
P
re
Item fe Pe Less: Gener O
rr rpe Other Minority equity Total owners’ equity
Treas al risk th
Share capital e tua Capital reserves comprehensive Specific reserve Surplus reserves Retained earnings Subtotal
Othe ury reserv e
d l income
rs stock es rs
s bo
h nd
ar s
e
s
I. Balance as at the end of the
previous year 2,369,668,838.10
Add: Changes in accounting
policies
Correction of previous error -777,201,329.82 -777,201,329.82 -777,201,329.82
Others
II. Balance at the beginning of the
year
III. Changes in the current period
-124,520,949.66 -3,317,264.68 3,262,875.34 -383,188,678.18 -507,764,017.18 -109,343,235.34 -617,107,252.52
("-" for decrease)
(I) Total comprehensive income -3,317,264.68 -383,328,019.43 -386,645,284.11 -114,205,338.99 -500,850,623.10
(II) Capital increased and reduced
-124,520,949.66 139,341.25 -124,381,608.41 2,798,342.84 -121,583,265.57
by the owner
owners
other equity instruments
payments included in owners'
equity
(III) Profit distribution 926,283.41 926,283.41
reserves
reserves
shareholders)
(IV) Transfers within owners’
equity
capital) from capital reserves
capital) from surplus reserves
schemes transferred to retained
earnings
converted into retained earnings
(V) Special reserves 3,262,875.34 3,262,875.34 1,137,477.40 4,400,352.74
period
(VI) Others
IV. Balance at the end of the -12,357,555.0
current period 0
Current amount
Unit: RMB
First half of 2026
Other equity instruments
O
Item Prefe Less: Other
Specific th
Share capital rred Oth Capital reserves Treasury comprehensive Surplus reserves Retained earnings Total owners’ equity
Perpetual bonds reserve e
share ers stock income
rs
s
I. Balance as at the end of the previous year 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
Add: Changes in accounting policies
Correction of previous error
Others
II. Balance at the beginning of the year 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
III. Changes in the current period ("-" for
- -945,397,369.05 -945,397,369.05
decrease)
(I) Total comprehensive income -945,397,369.05 -945,397,369.05
(II) Capital increased and reduced by the
owner
instruments
in owners' equity
(III) Profit distribution
(IV) Transfers within owners’ equity
capital reserves
surplus reserves
transferred to retained earnings
retained earnings
(V) Special reserves
(VI) Others
IV. Balance at the end of the current period 2,407,945,408.00 5,000,000,000.00 214,160,914.80 -1,360,579.00 1,260,024,039.76 -8,504,531,350.37 376,238,433.19
Amount of last year
Unit: RMB
First half of 2025
Other equity instruments O
Item Less: Other
Specific th
Share capital Preferred Perpetua Capital reserves Treasury comprehensive Surplus reserves Retained earnings Total owners’ equity
Others reserve er
shares l bonds stock income
s
I. Balance as at the end of the previous year 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
Add: Changes in accounting policies
Correction of previous error -443,004,797.05 -443,004,797.05
Others
II. Balance at the beginning of the year 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
III. Changes in the current period ("-" for
-126,029,421.25 192,749,983.59 66,720,562.34
decrease)
(I) Total comprehensive income 192,733,691.80 192,733,691.80
(II) Capital increased and reduced by the
-126,029,421.25 -126,029,421.25
owner
equity instruments
included in owners' equity
(III) Profit distribution 16,291.79 16,291.79
(IV) Transfers within owners’ equity
capital reserves
surplus reserves
transferred to retained earnings
into retained earnings
(V) Special reserves
(VI) Others
IV. Balance at the end of the current period 2,407,945,408.00 213,859,721.31 -1,281,096.83 1,260,024,039.76 -1,450,122,368.07 2,430,425,704.17
III. Company profile
when including subsidiaries), is a joint-stock limited company reorganized from the
former Shenzhen Konka Electronic Co., Ltd. in August 1991 upon approval of the
People’s Government of Shenzhen Municipality, and has its ordinary shares (A-share
and B-share) listed on Shenzhen Stock Exchange with prior consent from the People’s
Bank of China Shenzhen Special Economic Zone Branch. On August 29, 1995, the
Company was renamed to “Konka Group Co., Ltd.” (unified social credit code:
headquarters locates in No. 28, No. 12 Keji South Road, Science & Technology Park,
Yuehai Street, Nanshan District, Shenzhen, Guangdong Province.
After the distribution of bonus shares, allotments, increased share capital and new
shares issued over the years, as of June 30, 2026, the Company has issued a total of
of RMB2,407,945,408.00.
The Group was mainly engaged in consumer electronics and semiconductor
businesses, conducting the production and sales of colour TVs, white TVs,
optoelectronic display, storage and printed circuit Boards, etc.
Company on August 27, 2026.
IV. 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.
For details, please refer to Note X "Changes in the Consolidation Scope" and Note XI
"Equity in Other Entities" herein.
Checklist of Company Name and Abbreviations in this Report
No. Company name Abbreviation
No. Company name Abbreviation
Shenzhen Kangcheng Technology Innovation and
Development Co., Ltd.
Liaoyang Kangshun
Renewable
Chuzhou Konka Precision Intelligent Manufacturing
Technology Co., Ltd.
Shenzhen Konka Capital Equity Investment Management
Co., Ltd.
No. Company name Abbreviation
Suining Electronic
Technological Innovation
Technology Industry
Development
Shenzhen Konka
Semiconductor
Konka ChipCloud Semiconductor Technology (Yancheng) Konka ChipCloud
Co., Ltd. Semiconductor
Konka Cross-border (Hebei) Technology Development Co.,
Ltd.
Shenzhen Chuangzhi
Electrical Appliances
Telecommunications
Technology
Chongqing Optoelectronic
Technology
Ningbo Kanghanrui Electric
Appliances
Jiangxi High-transparency Substrate Material Technology Co., Jiangxi High-transparency
Ltd., Substrate
No. Company name Abbreviation
Chain Kingdom Memory
Technologies
Chain Kingdom
Semiconductor (Shaoxing)
Chongqing Xinyuan
Semiconductor
Shenzhen Kanghong Dongsheng Investment Partnership
(Limited Partnership)
Guizhou Konka New Material
Technology
Konka Smart Home Appliance (Shanxi) Industry Development
Co., Ltd.
Guizhou Kanggui Material
Technology
Chongqing Kangyiyun Business Operation Management Co.,
Ltd.
No. Company name Abbreviation
Jiangxi Konka High-tech Park Operation and Management
Co., Ltd.
Shangrao Konka Electronic
Technology Innovation
Zhejiang Konka Technology
Industry
Xi'an Kanghong Technology
Industry
Xi'an Konka Intelligent
Technology
Songyang Konka Smart Industry Operation Management Co.,
Ltd.
Songyang Konka Intelligent Technology Development Co.,
Ltd.
V. Basis for preparation of financial statements
The Group's financial statements were prepared in accordance with the Accounting Standards
for Business Enterprises promulgated by the Ministry of Finance as well as guidelines on
accounting standards for business enterprises, announcements on interpreting the
accounting standards for business enterprises and other related regulations (hereinafter
collectively referred to as the "Accounting Standards for Business Enterprises"), as well as the
disclosure regulations of the General Provisions on Financial Reporting No. 15 for Companies
Publicly Issuing Securities (revised in 2023) by the China Securities Regulatory Commission
(hereinafter referred to as the "CSRC").
The Group evaluated its ability to continue as a going concern for the 12 months from the
end of the Reporting Period and found no matters or circumstances that raised significant
doubts about its ability to continue as a going concern. Therefore, the financial statements
have been presented on a going concern basis.
VI. 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 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 on June 30, 2026, business
results and cash flows, and other relevant information for the half year of 2026.
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 VI. 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:
Methodology for
Location of disclosure of this
Disclosures involving Determining Materiality
matter in the notes to the present
materiality standard judgments Criteria and Basis for
financial statements
Selection
Significant individually bad debt Individual amount exceeding
Note VIII.4. Accounts receivable (2)
provisioned receivables RMB50,000,000
Receivables with significant
amount of bad debt provision Individual amount exceeding
Note VIII.4. Accounts receivable (3)
recovered or reversed during the RMB10 million
current period
Write-off of significant receivables Individual amount exceeding
Note VIII.4. Accounts receivable (4)
in the current period RMB10 million
Significant accounts payable aged Individual amount exceeding
Note VIII.26. Accounts payable
over 1 year RMB10 million
Significant receipts in advance
and contractual liabilities/projected Note VIII.27; Note VIII.28; Note Individual amount exceeding
liabilities/other payables aged over VIII.29; Note VIII.39 RMB10 million
Increase or decrease in a
Significant construction in Note VIII.16. Construction in
single asset during the current
Methodology for
Location of disclosure of this
Disclosures involving Determining Materiality
matter in the notes to the present
materiality standard judgments Criteria and Basis for
financial statements
Selection
progress projects progress (2) period or a balance exceeding
RMB0.1 billion
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 under different 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 and 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.
financial statements
The scope of consolidation for the consolidated financial statements of the Group is
based on control, including the Company and all its subsidiaries (including enterprises,
divisible parts of investees, and structured entities controlled by the Company). The
Group assesses control based on whether it has power over the investee, has
exposure or rights to variable returns from its involvement with the investee, and has
the ability to use its power over the investee to affect the amount of the investor's
returns.
The financial statements of subsidiaries are adjusted in accordance with the
accounting policies and accounting period of the Group during the preparation of the
consolidated financial statements, where the accounting policies and the accounting
periods are inconsistent between the Group and subsidiaries.
The impact of internal transactions between the Company and its subsidiaries, as well
as between subsidiaries and each other, was offset in consolidation. The shares of the
subsidiary's owner's equity that do not belong to the parent Group and the shares of
minority shareholders' equity in current net profit and loss, other comprehensive
income and total comprehensive income shall be respectively listed in the
consolidated financial statement "Minority shareholders' equity, minority shareholders'
profit and loss, other comprehensive income that belongs to minority shareholders and
total comprehensive income that belongs to minority shareholders".
For subsidiaries acquired through 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 merger period. When preparing the comparative
consolidated financial statements, the relevant items in the financial statements of the
previous year shall be adjusted as if the consolidated reporting entity had existed since
the final controlling party began to control it.
Where equity interests in an investee under common control are acquired step by step
through multiple transactions, ultimately resulting in a business combination, the
accounting treatment applied in the consolidated financial statements shall be
additionally disclosed in the reporting period in which control is obtained. For example,
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 profit or loss, 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 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 profit or loss of
the comparative reporting period, respectively.
For subsidiaries acquired through business combination under the different control,
the operating results and cash flow shall be included in the consolidated financial
statements from the date when the Group obtains the control right. When preparing
the consolidated financial statements, the financial statements of the subsidiaries shall
be adjusted on the basis of the fair value of the identifiable assets, liabilities and
contingent liabilities determined on the acquisition date.
Where the equity of an investee not under common control is acquired in stages
through multiple transactions, ultimately resulting in a business combination, the
accounting treatment in the consolidated financial statements shall be additionally
disclosed in the reporting period in which control is obtained. 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 profit or loss, 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.
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
recognised 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 classifies joint arrangements into joint operations and joint ventures. For a
joint operation, the Group, as a joint operator, recognizes the assets and liabilities that
it holds and bears in the joint operation, and recognizes the jointly-held assets and
jointly-borne liabilities according to the Group’s stake in the joint operation; recognizes
relevant income and expense according to the Group’s stake in the joint operation.
When the Group purchases or sells the assets not constituting business with the joint
operation, the Group only recognized the share of the other joint operators in the gains
and losses arising from the transaction.
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.
(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 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 was presented in other comprehensive income item. The foreign
currency cash flow was converted at the average exchange rate for the period (monthly average
exchange rate) of the cash flow occurrence date. The amount of exchange rate change influence
on cash was independently presented in cash flow statement.
(1) Recognition and derecognition of financial instruments
The Group recognizes a financial asset or liability when it becomes a party of the relevant financial
instrument contract.
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.
In case of current obligation of financial liabilities (or partial financial liabilities) being terminated,
derecognition of such financial liabilities (or partial financial liabilities) is conducted by the Group. If
the Group (borrower) concludes an agreement with the lender to replace existing financial liabilities
with new ones and contact terms of new financial liabilities are different from those of existing
financial liabilities, derecognition of existing financial liabilities and recognition of new financial
liabilities shall be conducted. In case of material alteration of contract terms of existing 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. In case of
derecognition of financial liabilities (partial financial liabilities), the Group includes the balance
between its book value and payment consideration into the current profit or loss.
All regular acquisitions or sales of financial assets are recognized and derecognized on a
transaction date basis.
(2) Classification and measurement method 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 profit or loss 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 classified the financial assets meeting the following conditions at the same time as
financial assets at amortized cost: ①The business mode of the Group to manage the financial
assets targets at collecting the contractual cash flow. ②The contract of the financial assets
stipulates that the cash flow generated in the specific date is the payment of the interest based on
the principal and outstanding principal amount. These financial assets are initially measured at fair
value, and relevant transaction cost is included into the initially recognized amount; subsequent
measurement is carried out at amortized cost. Except for those designated to be hedge items, the
difference between the initial recognized amount and the amount due shall be amortized at actual
interest rate and their amortization, impairment and exchange gain and loss as well as gains or
losses arising from derecognition shall be recorded into the current profit or loss.
The Group 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. ②The contract of the financial assets stipulates that the cash flow generated in
the specific date is the payment of the interest based on the principal and outstanding principal
amount. These financial assets initially measured at fair value and relevant transaction cost shall be
included into the initial recognized amount. Except for those designated as hedged items, any other
gains or losses arising from such financial assets, except for credit impairment losses or gains,
exchange profit or loss, and interest on the financial asset calculated using the effective interest
rate method, is 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 profit or loss.
The Group recognizes interest income according to the effective interest rate method. Interest
income is calculated and determined according to the book balance of the financial asset multiplied
by the actual interest rate, except for the following circumstances: 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 profit and loss, other
relevant gains and losses (including exchange profit or loss) are included in other comprehensive
income and shall not be subsequently transferred to the current profit or loss. Except for dividends
(excluding those belonging to recovery of investment cost) which shall be recorded into the current
profit or loss, other relevant gains and losses (including exchange gains and losses) shall be
recorded into other comprehensive income and cannot be transferred into the current profit or loss
subsequently. When derecognized, the accumulated gains or losses originally recorded into other
comprehensive income shall be transferred out into retained earnings. Equity instrument
investments measured at fair value through other comprehensive income included: Equity
investments to be held in the long term as planned by the Group for strategic purpose, with no
control, joint control or significance influence, and with no active market quotation.
For 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 profit or loss. These financial
assets are initially measured at fair value, and the relevant transaction costs are directly included in
the current profit or loss. Gains or losses arising from these financial assets is recorded into the
current profit or loss.
The contingent consideration recognized by the Group in the business combination not under the
same control which constitutes a financial asset is classified as the financial assets measured at
fair value through current profit or loss.
(3) Classification, recognition basis and measurement method of financial liabilities
The Group’s financial liabilities are, on initial recognition, classified into financial liabilities at fair
value through profit or loss and other financial liabilities.
Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities and
financial liabilities designated at the initial recognition to be measured by the fair value and their
changes are recorded in the current profit or loss. The subsequent measurement shall be at fair
value and gains or losses arising from changes in fair value and the dividends and interest expense
related to the financial liability shall be the current profit or loss.
Other financial liabilities shall be subsequently measured at amortized cost with actual interest rate.
The Group classifies financial liabilities except for the following items as financial liabilities at
amortized cost: ①Financial liabilities at fair value through profit or loss including held-for-trading
financial liabilities (including the derivative instruments belonging to financial liabilities) and
designated financial liabilities at fair value through profit or loss. ②Financial liabilities arising from
the transfer of financial assets not meeting the derecognition conditions or continuous involvement
in the transferred financial assets. ③Financial guarantee contract not belonging to cases of above
① or ② and loan commitments at 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
purchase party in the business combination not under the same control at fair value and changes
thereof shall be recorded into the current profit or loss.
(4) Impairment of financial 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 losses refer to the weighted average of credit losses of financial instruments that
are weighted by the risk of default. Credit loss refers to the difference between all receivable
contract cash flows and all expected cash flows that are discounted to the present value based on
the original actual interest rate the present value of all cash shortfall.
Expected credit loss throughout the 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 during the entire lifespan.
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 during 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 other than those to which the simplified measurement approach is applied
(such as debt investments, other debt investments, and other receivables), as well as loan
commitments and financial guarantee contracts, the Group applies the general approach (a
three-stage model) to measure the allowance for expected credit losses. On each balance sheet
date, the Group assesses whether there is 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 during 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 XIII. 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.
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 a
written-off financial asset is recovered subsequently, the recovered amount is recognized in profit
or loss for the period of recovery as a reversal of impairment loss.
(5) Recognition basis and measurement method 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 profits and losses.
If the partial transfer of financial assets satisfies the conditions for termination confirmation, the
entire book value of the transferred financial assets will be apportioned between the termination
confirmation portion and the non-termination confirmation portion according to their relative fair
values, and the consideration received for the transfer And the amount corresponding to the
termination of the recognition of the cumulative amount of changes in fair value originally included
in other comprehensive income that should be apportioned to the derecognition part And the
payment of interest based on the outstanding principal amount), and the difference between the
total book value of the aforesaid financial assets allocated is included in the current profit and loss.
(6) 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 use its own equity instrument to settle the financial
instrument, in which the amount of contractual rights or contractual obligations is equal to the
number of its own equity instruments available or to be delivered multiplied by its fair value at the
time of settlement, regardless of whether the amount of contractual rights or obligations is fixed,
whether it is entirely or partially based on changes in variables other than the market price of the
Group's own equity instruments, the contract shall be classified as a financial liability.
In classifying financial instruments (or their components) in the consolidated statement, the Group
has taken into account all terms and conditions reached between the Group members and the
holders of financial instruments. If the Group as a whole undertakes the obligation to deliver cash,
other 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 classified as a financial liability.
If financial instruments or their components are financial liabilities, the Group will include interest,
dividends (or dividends), gains or losses, and gains or losses arising from redemption or
refinancing, etc. in the current profits and losses.
If financial instruments or their components are equity instruments, when they are issued (including
refinancing), repurchased, sold or cancelled, the Group will treat them as changes in equity and will
not recognize changes in the fair value of equity instruments.
(7) 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 specific expected
credit loss during the entire period of existence. According to the credit risk characteristics thereof,
except those with separate evaluation of credit risk, notes receivable can be divided into different
combinations:
Item Basis
Bank Acceptance Bills The Accepter shall be the bank with high credit level and low risks
Trade Acceptance Classified by credit risk of accepters (the same as accounts receivable)
For account receivable and contract assets excluding significant financing composition, the Group
shall measure the provision for loss according to the specific expected credit loss amount within the
entire period of existence.
For account receivable, contract assets and lease payment receivable including significant
financing composition, the Group shall always measure the provision for loss according to the
specific expected credit loss amount within the period of existence.
Except the account receivable and contract assets whose credit risks shall be separately evaluated,
the Group shall divide them into different combinations based on the specific credit risks:
Item Basis
Aging Portfolio This portfolio is accounts receivable with aging as the credit risk feature
Item Basis
Related Party
The accounts receivable from the other entities within the consolidation scope
Portfolio
The Group’s accounts receivable financing is based on expected credit losses, and provision is
made for depreciation reserves in accordance with the expected credit loss measurement method
for notes receivable.
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 12 months; ② for financial
assets whose credit risk has increased significantly since initial 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
Aging Portfolio This portfolio is other receivables with aging as the credit risk feature
This portfolio's credit risk characteristics are other receivables with extremely
Low-Risk Portfolio
low risk, such as petty cash, security deposits, and deposits
Related Party
Other receivables from the other entities within the consolidation scope
Portfolio
(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 has the right to receive payment as a contract assets.
(2) Determination methods and accounting treatments of expected credit losses of contract
assets
The method for determining the expected credit losses of contract assets involves measuring the
impairment losses of contract assets by referencing the method used for the impairment loss
measurement of receivables as previously described.
The Group calculates the expected credit loss of contract assets on the balance sheet date. If the
expected credit loss is greater than the book 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”. If the expected credit
loss is greater than the book value of the current contract asset impairment provision, the Group
will recognize the difference as an impairment loss and debit the "asset impairment loss". Credited
"Contract asset impairment provision". On the contrary, the Group recognizes the difference as an
impairment gain and keeps the opposite accounting records.
If the Group actually incurs credit 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 into
"losses from asset impairment".
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 and dispatch is
determined by 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 account after deducting
the estimated cost of completion, estimated sale expense and relevant taxes from the estimated
sale price of inventories. The net realizable value of inventories shall be fixed on the basis of valid
evidence as well as under consideration of purpose of inventories and the effect of events after the
balance sheet date.
After withdrawing the depreciation reserves for inventories, if the factors, which cause any
write-down of the inventories, have disappeared, causing the net realizable value of inventories is
higher than its book value; the amount of write-down shall be reversed from the original amount of
depreciation reserve for inventories. The reversed amount shall be included in the profits and
losses of the current period.
By determining whether the credit risk of long-term account receivables increases remarkably after
the initial recognition, the Group shall measure the impairment loss based on the specific expected
credit loss in the following 12 months or during the entire period of existence. Except long-term
account receivables whose credit risks shall be separately evaluated, the Group shall divide them
into different combinations based on the specific credit risk features:
Item Basis
Financing Lease Regarding the long-term receivables related to the financing lease as the credit
Portfolio risk characteristics
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.
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 statement. If the book value of the net assets of the merged party on the
merger date is negative, the cost of long-term equity investments is determined as zero.
If the equity of the investee under the same control is acquired in stages through multiple
transactions to eventually result in a business combination, additional disclosures of the treatment
of long-term equity investments in the parent Group's financial statements shall be made in the
Reporting Period in which control is obtained. For example, if the business combination that is
ultimately formed through multiple transactions to acquire the equity of the investee under the same
control belongs to a package deal, the Group shall conduct accounting treatment to treat each
transaction as a single transaction to acquire control. If the transaction is not a package deal, the
initial investment cost of the long-term equity investment is based on the share of the book value of
the net assets of the merged party in the consolidated financial statements of the ultimate controller
at the merger date. The difference between the initial investment cost and the sum of the book
value of the long-term equity investment before the merger plus the book value of the new
consideration paid for further acquisition of shares at the merger date shall offset against capital
reserve; and where capital reserve is insufficient to be offset, the retained earnings shall be
adjusted.
For long-term equity investment acquired through business combination not under the same control,
the initial investment cost shall be the consolidation cost.
If the equity of the investee not under the same control is acquired in stages through multiple
transactions to eventually result in a business combination, additional disclosures of the cost
treatment of long-term equity investments in the parent Group's financial statements shall be made
in the Reporting Period in which control is obtained. For example, if the business combination that
is ultimately formed through multiple transactions to acquire the equity of the investee not under the
same control belongs to a package deal, the Group shall conduct accounting treatment to treat
each transaction as a single transaction to acquire control. If the transaction is not a package deal,
the sum of the book value of the equity investment originally held plus the cost of the new
investment shall be the initial investment cost calculated in accordance with the cost method. If the
equity held prior to the purchase date is accounted by the equity method, the relevant other
comprehensive income accounted by the original equity method shall not be adjusted. The same
basis of accounting as that used for the direct disposal of the related assets or liabilities by the
investee is used for the disposal of the investment. If the equity held 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; For financial
assets measured at fair value through current profit or loss, the gains or losses of the equity
originally included in the profit or loss 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 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 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 associate enterprises through the equity method.
For long-term equity investments calculated by the cost method for subsequent measurement, the
book value of the cost of long-term equity investments shall be increased by the fair value of the
cost amount paid for the additional investment and relevant transaction costs incurred when the
additional investment is made. Cash dividends or profits declared by the investee are recognized
as investment income for the current period in accordance with the due amount.
For the long-term equity investment whose subsequent measurement adopts the cost method,
when the additional investment is made, the book value of the long-term equity investment cost is
increased according to the fair value of the cost amount paid by the additional investment and the
relevant transaction expenses. In recognizing the share of net profit or loss 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 and 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 long-term equity investment with equity method for subsequent measurement, the book
value of the long-term equity investment will increase or decrease with the change of the owner's
equity of the invested entity. When confirming the share of the net profit and loss of the investee,
the net profit and loss of the investee shall be calculated based on the fair value of the identifiable
assets of the investee at the time of obtaining the investment, in accordance with the accounting
policies and accounting period of the Group, and offset the internal transaction profit and loss
between the joint venture and the joint venture according to the shareholding ratio Profit is
recognized after adjustment.
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 common control or significant influence and its book value is
recognized in current profit or loss. For long-term equity investment accounted by equity method,
other comprehensive income accounted by the original equity method shall be accounted on the
same basis as the investee's direct disposal of relevant assets or liabilities when the equity method
is terminated, and the owner's equity shall be recognized due to other changes in owner's equity of
the investee except net profit and loss, other comprehensive income and profit distribution When
the equity method is terminated, all of them shall be transferred into the current investment income.
In case 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 equity method. The difference between the
book value of the disposal 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 profit or loss.
If the transaction from step-by-step disposal of equity to loss of control right does not belong to
package transaction, accounting treatment shall be carried out for each transaction separately. If it
is 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 account of loss of control Period profit and loss.
The term “investment property” refers to the real estate held for generating rent and/or capital
appreciation. Investment property of the Group include the right to use any land which has already
been rented; the right to use any land which is held and prepared for transfer after appreciation;
and the right to use any building which has already been rented. In addition, if the Board of
Directors (or similar organizations) makes a written resolution to use the vacant buildings held by
the Group for operating lease and the holding intention will not change in a short time, they will also
be listed as investment real estate.
The initial measurement of the investment property shall be made at its cost. 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 profit or loss when incurred.
The Group shall make a follow-up measurement to the investment property by employing the cost
pattern on the date of the balance sheet. An accrual depreciation or amortization shall be made for
the investment property in the light of the accounting policies of the use right of buildings or lands.
For details of impairment test method and withdrawal method of impairment provision of investment
property, please refer to Note VI. 26. "Long-term assets impairment".
The Group's investment real estate adopts the average life method for depreciation or amortization.
The expected service life, net residual value rate and annual depreciation (amortization) rate of all
kinds of investment real estate shall refer to the depreciation policy of buildings in fixed assets and
the amortization policy of land use right in intangible assets.
When owner-occupied real estate or inventories are changed into investment property or
investment property is changed into owner-occupied real estate, of which book value prior to the
change shall be the entry value after the change.
When an investment property is changed to an owner-occupied real estate, it would be transferred
to fixed assets or intangible assets at the date of such change. When an owner-occupied real
estate is changed to be held to earn rental or for capital appreciation, the fixed asset or intangible
asset is transferred to investment property at the date of such change. 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 profit or loss 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 reliably. The Group’s fixed
assets include buildings and constructions, machinery and equipment, electronic equipment,
transportation equipment, and other equipment.
The Group depreciates all fixed assets by straight-line method, except for fully depreciated fixed
assets that continue to be used and land that is separately valued. The 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:
Depreciation period Depreciation period Expected net salvage Annual
Type
No. (year) (year) value (%) deprecation (%)
Straight-line
Housing and building 20-40 5-10.00 2.25-4.75
Machinery Straight-line
Straight-line
Electronic equipment 3-5 5-10.00 18.00-31.67
Transportation Straight-line
Straight-line
Other equipment 5 5-10.00 18.00-19.00
The estimated useful life, estimated net salvage value and depreciation method of fixed assets are
reviewed at the end of each year. Accounting estimation methods are used when changes are
required.
The cost of construction in progress is determined based on actual project expenditures, including
all necessary project expenditures incurred during construction, borrowing costs to be capitalized
before the project reaches its predetermined usable state, and other related expenses, etc.
On the date when the construction in progress reaches its intended useable state, fixed assets are
carried forward at the estimated value based on the project budget, cost or actual cost of the project,
etc. Depreciation starts from the following month, and the difference in the original value of fixed
assets is adjusted after the completion of the final accounting procedures.
Construction in progress is transferred to fixed assets upon reaching the predetermined usable
state, with the criteria as follows:
Item Criteria for carrying forward fixed assets
The main construction project and ancillary projects are substantially
Housing and building completed, meeting the predetermined design requirements. Upon joint
acceptance by the Company’s Engineering Department and units
Item Criteria for carrying forward fixed assets
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 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
Machinery equipment equipment, including hardware 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. Other borrowing costs are
recognized as expenses in the current period. 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, or 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 is included in the current profit or loss. 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 special 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.
(1) Initial measurement
After the commencement date of the lease term, the Group uses the cost for initial measurement of
right-of-use assets. The cost includes the following four items: 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 incentives, the lease incentives 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
follow-up measurement of the right-of-use assets, that is, the right-of-use assets are measured at
cost less accumulated depreciation and accumulated impairment losses. If the Group re-measures
the lease liabilities according to the relevant provisions of the lease standards, the book value of
the right-of-use assets shall be adjusted accordingly.
(3) Depreciation of right-of-use assets
From the commencement date of the lease term, the Group has accrued depreciation on the
right-of-use assets. Right-of-use assets are usually depreciated from the month when the lease
term begins. The accrued depreciation amount is included in the cost of related assets or current
profits and losses according to the use of the right-of-use assets.
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 on 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 can not 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.
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 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 basis for determination, estimates, 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 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 are recognized in profit or loss when incurred.
Expenditure on the development phase are capitalized when all of the following conditions are met:
①The Group has assessed the technical feasibility of completing the intangible asset so that it will
be available for use or sale;
② The Group intends to complete the intangible asset and use or sell it;
③ It is probable that the intangible asset will generate future economic benefits.
④ The Group has the adequate technical, financial, and other resources to complete the
development and to use or sell the intangible asset;
⑤ The expenditure attributable to the development phase of the intangible asset can be measured
reliably. Development phase expenditures not meeting these capitalization criteria are recognized
in profit or loss for the current period when incurred.
For non-current non-financial Assets of fixed assets, projects under construction, intangible assets
with limited service life, investing real estate with cost model, long-term equity investment of
subsidiaries, cooperative enterprises and joint ventures, the Group should judge whether decrease
in value exists on the date of balance sheet. Recoverable amounts should be tested for decrease in
value if it exists. Goodwill, intangible assets with uncertain service life and other non-accessible
intangible assets should be tested for impairment at the end of each year, regardless of whether
there is any indication of impairment.
Impairment of non-current assets other than financial assets (except goodwill)
If the recoverable amount is less than book value in impairment test results, the provision for
impairment of differences should include in impairment loss. Recoverable amounts would be the
higher of net value of asset fair value deducting disposal charges or present value of predicted
cash flow. The fair value of the assets is determined according to the sales agreement price in fair
transactions; 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 sales agreement nor an
active market for the asset, the fair value is estimated based on the accessible optimum information.
Disposal expenses include legal fees, taxes, cartage or other direct expenses of merchantable
Assets related to asset disposal. Present value of predicted asset cash flow should be determined
by the proper discount rate according to Assets in service and predicted cash flow of final disposal.
Asset depreciation reserves should be calculated on the basis of single Assets. If it is difficult to
predict the recoverable amounts for single Assets, recoverable amounts should be determined
according to the belonging asset group. Asset group is the minimum asset combination producing
cash flow independently.
In impairment test, book value of the business reputation in financial report should be shared to
beneficial asset group and asset group combination in collaboration of business combinations. It is
shown in the test that if recoverable amounts of shared business reputation asset group or asset
group combination are lower than book value, it should determine the impairment loss. Impairment
loss amount should firstly be deducted and shared to the book value of business reputation of asset
group or asset group combination, then deduct book value of all assets according to proportions of
other book value of above assets in asset group or asset group combination except business
reputation.
The methodology, parameters and assumptions for the goodwill impairment test are detailed in
Note VIII. 19.
After the asset impairment loss is determined, recoverable value amounts would not be returned in
future.
The Long-term deferred expenses of the Group including renovation cost, mold cost and so on
shall be amortized evenly during the benefit period. If these long-term deferred expenses cannot
benefit the future accounting period, the amortized value of this item that has not been amortized
shall be transferred to the current profit or loss.
Liabilities of contracts refer to the Group's obligation to transfer goods to customers due to the
consideration received or receivable from customers. Before the transfers, if the customer has paid
the consideration or if the Group has obtained the right to unconditionally collect the contract
consideration, the liabilities of contracts shall be recognized based on the amount received or
receivable at the earlier point between the actual payment by the customer and the payment due.
Salaries of staff of the Group include short-term salary, post-employment benefits, termination
compensation, and other long-term benefits.
Short-term salary mainly includes wages, bonuses, allowances and subsidies, as well as employee
benefits, medical insurance, maternity insurance, employment injury insurance, housing provident
fund, labor union expenses, and staff education expenses, and non-monetary benefits. During the
accounting period when the employees provide services, the actual short-term compensation is
recognized as a liability that shall be included in the current profit and loss or the cost of related
assets according to the beneficiary.
The post-employment benefits mainly include the basic endowment insurance, etc. They are
divided into defined contribution plans and defined benefit plans in accordance with the risks and
obligations undertaken by the Group. According to the defined contribution plan, the deposit paid to
a separate entity in exchange for the services provided by the employees during the accounting
period on the balance sheet date is recognized as liabilities, and shall be included in the current
profit and loss or the cost of related assets according to the beneficiary. If the Group has a defined
benefit plan, the specific accounting method should be explained.
When terminating labour relations before expiration of contract, or layoffs with compensations, and
the Group cannot terminate the labour relations unilaterally or reduce the dismissal welfare,
remuneration and liabilities produced from the dismissal welfare should be determined and
included in current profits and losses when determining the costs of dismissal welfare and
recombination. However, dismissal welfare not fully paid within 12 months after annual reporting
period should be handled the same as other long-term employees’ payrolls.
The inside employee retirement plan is treated by adopting the same principle with the above
dismiss ion welfare. The Group would recorded the salary and the social security insurance fees
paid and so on from the employee’s service termination date to normal retirement date into current
profits and losses (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 met with the setting drawing plan,
should be accounting disposed according to the setting drawing plan, while the rest should be
disposed according to the setting revenue plan.
（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 call option when the Group reasonably determines that the call
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.
When calculating the present value of the lease payments, the Group uses the interest rate implicit
in lease as the rate of discount, which is the interest rate at which the sum of the present value of
the lessor's lease receipts and the present value of the unsecured residual value equals the sum of
the fair value of the leased asset and the lessor's initial direct expenses. If the Group fails to
determine the interest rate implicit in lease, the incremental interest rate on borrowing will be used
as the rate of discount. The incremental interest rate on borrowing shall mean the interest rate
payable by the Group to borrow funds under similar mortgage conditions during similar periods to
acquire assets close to the value of the right-of-use assets under similar economic circumstances.
The interest rate is related to the following matters: ① the Group's own situation, that is, the
company's solvency and credit status; ② the term of the "borrowings", 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 commencement date of the lease term, the Group subsequently measures the lease
liability according to the following principles: ① increase the carrying amount of the lease liability
when recognizing interest on the lease liability; 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
profit or loss for the current period. Periodic rate refers to the rate of discount adopted by the Group
when initially measuring lease liabilities, or the revised rate of discount adopted by the Group when
lease liabilities need to be remeasured according to the revised rate of discount due to changes in
lease payments or lease changes.
（3） Re-measurement
After the 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 profit or loss for the current period. 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 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 call 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 projected liabilities are initially measured in accordance with the optimal estimate of the
necessary expenses for the fulfillment of the current obligation, with the risks related to contingent
matters, uncertainty, the time value of money, and other factors taken into consideration. The
Group reviews the current best estimate of the provisions for contingent liabilities at the balance
sheet date and adjusts the carrying amount of the provision as necessary.
When all or some of the expenses necessary for the liquidation of an provisions of an enterprise is
expected to be compensated by a third party, the compensation should be separately recognized
as an asset only when it is virtually certain that the reimbursement will be obtained. Besides, the
amount recognized for the reimbursement should not exceed the 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 profit or loss for the current period.
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. 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 is entitled to collect payments for the cumulative performance of the contract during the
entire contract period.
For performance obligations performed within a certain period of time, the Group recognizes
revenue according to the performance progress during that period. When the performance
progress cannot be reasonably determined, if the cost incurred by the Group is expected to be
compensated, the revenue shall be recognized according to the amount of the cost incurred until
the performance progress can be reasonably determined.
For performance obligations performed at a certain point in time, the Group recognizes revenue at
the point 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 good or service, 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 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 or is receivable consideration from the customer is
presented as a contract liability.
(2) Income measurement principles
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.
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.
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.
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.
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 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.
transaction prices 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 service. 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.
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.
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 in①, and
the 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 method
The revenue of the Group mainly consists of the operating revenue from main business and other
business income.
① Revenue Recognized on time
The Group's sales of household appliances, electronic components, etc., belong to the
performance obligation performed at a certain point in time.
Recognition conditions for income from domestic sales of goods and overseas direct sales of
goods: The Group has delivered the product to the customer in accordance with the contract and
the customer has received the product, the payment has been recovered or the receipt of payment
has been obtained, and the relevant economic benefits are likely to flow in. The main risks and
rewards have been transferred, and the legal ownership of the goods has been transferred.
Conditions for confirming the income of exported goods: The Group has declared the products for
export according to the contract, obtained the bill of lading, and delivered the goods to the carrier
entrusted by the purchaser. The payment has been recovered or the receipt of payment has been
obtained and relevant economic benefits are likely to flow in. The main risks and rewards of
commodity ownership have been transferred, and the legal ownership of commodities has been
transferred.
② Income confirmed according to the performance progress
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.
(1) Method of determining the amount of assets related to contract costs
The Group’s assets related to contract costs include contract performance costs and contract
acquisition costs.
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 enriches 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 are 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
profit or loss 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 incremental cost that can be
recovered (such as travel expenses incurred regardless of whether the contract is obtained, etc.),
are included in the current profit and loss when they are incurred, but it is clearly borne by the
customer except.
(2) Amortization of assets related to contract costs
The Group’s assets related to contract costs are amortized on the same basis as the commodity
revenue recognition related to the asset and included in the current profit and loss.
(3) Impairment of assets related to contract costs
When 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 depreciation factors of the previous period have changed, and the aforementioned difference
is higher than the book value of the asset, the original provision for asset impairment shall be
reversed and included in the current profit and loss, but the book value of the asset after the
reversal shall not exceed Assuming no provision for impairment is made, the book value of the
asset on the date of reversal.
The government grants of the Group are divided into asset-based government grants and
income-based government grants. Specifically, asset-based government grants refer to the
government grants obtained by the Group for the purpose of purchasing, constructing or otherwise
forming long-term assets; income-based government grants refer to those other than asset-based
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-based government grants as a whole.
If the government subsidies are monetary assets, they shall be measured at the amount 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 (RMB1).
Asset-based 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 profits and
losses by the equal amortization method.
If the related asset is sold, transferred, scrapped, or damaged before the end of its useful life, its
deferred income that has not been distributed shall be transferred to the current profit and loss of
asset disposal.
Income-based grants that are used to compensate related costs or losses in subsequent periods
shall be deemed as deferred income and shall be included in the current profits and losses during
the period when the related costs or losses are recognized. Government grants related to routine
activities shall be included in other income in accordance with the nature of the transaction.
Government grants not related to routine activities shall be included in non-operating 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:
offset, and any excess shall be recognized in profit or loss for the current period.
The Group's deferred tax assets and deferred tax liabilities are calculated and recognized based on
the difference (temporary difference) between the tax base and book value of the assets and
liabilities. In the case of deductible losses that can be deducted from taxable income in subsequent
years in accordance with the provisions of the tax laws, the corresponding deferred 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 isn’t 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 a consideration,
such contract is a lease or includes a lease. In order to determine whether a party to the contract
transfers the right allowing the control over the use of the identified assets for a certain period of
time, the Group assesses whether the customers in the contract are entitled to obtain almost all the
economic benefits arising from the use of the identified assets during the use period, and have the
right to dominate the use of the identified assets during the use period.
If a contract contains multiple single leases at the same time, the Group will split the contract, and
conduct accounting treatment of each single lease respectively. If a contract contains both lease
and non-lease parts at the same time, the Group will split the lease and non-lease parts for
accounting treatment.
（2） The Group as a Lessee
On the lease commencement date, the Group recognizes the right-of-use assets and lease
obligations in respect of the lease. For the recognition and measurement of right-of-use assets and
lease liabilities, please refer to Note VI "24. Right-of-use assets" and "31. Lease liabilities".
A lease change refers to a change in the scope, consideration, and term of lease outside the
original contract clauses, including the addition or termination of the one or several rights to use
lease assets, and the extension or reduction of the lease term specified in the contract. The
effective date of lease change refers to the date when both parties reach an agreement on lease
change.
If there is any change in the lease and the following conditions are met at the same time, the Group
shall account for the lease change as a separate lease: ① the lease change 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 change is not accounted for as a separate lease, on the effective date of the lease
change, the Group amortizes the consideration of the contract after the change in accordance with
the relevant provisions of the lease standards and re-determine the lease term after the change;
the revised discount rate is used to discount the changed lease payment to remeasure the lease
liabilities. When calculating the present value of the lease payment after the change, the Group
uses the interest rate implicit in the lease for the remaining lease period as the discount rate; where
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 change as the
discount rate. If the interest rate implicit in lease cannot be determined, the Group adopts the
incremental borrowing rate of the lessee on the effective date of the lease change as the rate of
discount. With regard to the impact of the above-mentioned lease liability adjustment, the Group
conducts accounting treatment according to the following situations: ① The lessee will
correspondingly reduce the book value of the right-of-use assets and include the profit or loss of the
lease terminated in part or whole in the current profit or loss, if the lease change narrows the scope
of lease or shortens the lease term. ② The lessee will correspondingly adjust the book value of the
right-of-use assets, if other lease changes result in the re-measurement of the lease obligation.
For short-term leases with a lease term not exceeding 12 months and low-value asset leases with
lower value when single leased assets are brand new assets, the Group chooses not to recognize
right-of-use assets and lease liabilities. The Group includes the payments of short-term and
low-value asset leases incurred during each period of the lease term in the profit or loss for the
current period or the cost of relevant assets by the straight-line method.
（3） The Group as 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; ②The 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; ③The
lessee has the ability to continue the lease for a secondary period at a rent that is substantially
lower than market rent.
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. It recognizes the net
investment in the lease as the entry value of the finance lease, when initially measuring the finance
lease receivable.
The net investment in the lease is the sum of the net value of the unguaranteed residual value and
the lease receivable not received on the commencement date of the lease term at the interest rate
implicit in lease. Lease receipts refer to the amount that the lessee 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 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 a purchase option, if it is reasonably certain that the lessee will exercise that
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 of 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. 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 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 profits and losses of the
current period 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
Variable lease payments made by the Group in relation to operating leases that are not included in
the lease receivable are included in the current profit or loss when they are actually incurred.
Change of operating leases
If an operating lease changes, the Group will regard it as a new lease for accounting treatment from
the effective date of the change. The advance receipt or the lease receivable related to the lease
prior to the change is recognized as the payment receivable of the new lease.
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.
(1) Major changes in accounting policies
The Group had no changes in accounting policies during the current period
(2) Major changes in accounting estimates
The Group had no changes in accounting estimates during the current period
VII. Taxation
Taxation Tax basis Tax rate
Calculated the output tax at the tax rate
and paid the VAT by the amount after
deducting the deductible withholding
Value-added tax VAT at current period, of which the VAT 1%,3%,5%,6%,9%,13%
applicable to easy collection won’t
belong to the deductible withholding
VAT.
Urban maintenance and construction 5%, 7% / See 2. Tax Preference for
The circulating tax actually paid
tax details
Education surcharge The circulating tax actually paid 3% / See 2. Tax Preference for details
Local education surcharge The circulating tax actually paid 2% / See 2. Tax Preference for details
Enterprise income tax Taxable income 25% / See 2. Tax Preference for details
Notes to the taxpayers with different enterprise income tax rates
Name of entity Income tax rate
Electronic Technology, Anhui Konka, Anhui Tongchuang,
Xingda Hongye, Bokang Precision, Chengdu Konka 15%
Electronic
Hong Kong Konka, Hongdin Trading, Jiali International,
Hongjet, Jiaxin Technology, Hongdin Invest, Konka
Mobility, Zhongkang Storage Technology, Kowin Memory
(Hong Kong)
Konka Europe 15%
Kanghao Technology 22.50%
Konka North America 21%
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
enterprise 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
enterprise income tax in advance from January 1, 2008 and will be final settled uniformly by the
Company at the year-end.
(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 enterprise
income tax at the tax rate of 20%, which shall be continued until 31 December 2027. Resource tax
(excluding water resource tax), urban maintenance and construction 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, 2027. The Company's subsidiaries, Yibin Konka Intelligent, Anlu Konka, Kangjiatong,
Nantong Konka, Digital Technology, Xiaojia Technology, Shanghai Konka, Guizhou Konka New
Materials, Ji'an Konka, Xi'an Konka Intelligent, Zhejiang Konka Technology Industry, Konka North
China, Zhitong Technology, Songyang Konka Intelligent, and Liaoyang Kangshun Renewable 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 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 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%.
(4) 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 and validity period of 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%.
(5) 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%.
(6) 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
is valid for three years. According to relevant tax regulations, Xingda Hongye will enjoy the relevant
tax incentives for high-tech enterprises for three consecutive years from 2024 to 2026, paying
enterprise income tax at a preferential rate of 15%.
(7) 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 2020), an enterprise established
in the western region who is mainly engaged in an industry specified in the Catalogue of
Encouraged Industries in the Western Region and whose main business income accounts for over
policy.
(8) 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 subsidiary,
Electronic Technology, enjoys this preferential policy.
VIII. Notes to items in consolidated financial statements
Item Ending balance Beginning balance
Cash on hand
Bank deposits 2,037,866,049.15 5,169,889,627.52
Other monetary assets 650,077,025.18 1,144,052,257.53
Total 2,687,943,074.33 6,313,941,885.05
Of which: Total amount of funds deposited
overseas
Item Ending balance Beginning balance
Financial assets measured at fair value through current
profit or loss
Including: Investment in equity instruments 138,775,929.60 202,027,000.00
Total 138,775,929.60 202,027,000.00
(1) Presentation of notes receivable by category
Item Ending balance Beginning balance
Bank Acceptance Bills 132,760,150.46 50,977,695.45
Trade Acceptance 24,160,889.26 26,339,290.11
Total 156,921,039.72 77,316,985.56
(2) Listed by withdrawal methods for provision for bad debts
Ending balance
Type
Book balance Provision for bad debts Book value
Provision
Percentage
Amount Amount percentage
(%)
(%)
Provision set aside for bad
debts by the single item
Provision set aside for bad
debts by portfolio
Of which: Bank acceptance bills 132,760,150.46 84.33 132,760,150.46
Trade Acceptance 24,664,035.58 15.67 503,146.32 2.04 24,160,889.26
Total 157,424,186.04 100.00 503,146.32 0.32 156,921,039.72
(Continued)
Beginning balance
Book balance Provision for bad debts
Type
Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
Provision set aside for bad
debts by the single item
Provision set aside for bad
debts by portfolio
Of which: Bank acceptance bills 50,977,695.45 65.47 50,977,695.45
Trade Acceptance 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
Provision for expected credit losses on commercial acceptance draft based on aging in the portfolio
Ending balance
Name Provision percentage
Book balance Provision for bad debts
(%)
Within 1 year 24,664,035.58 503,146.32 2.04
Total 24,664,035.58 503,146.32 2.04
(3) Provision for bad debts accrued, recovered or reversed for the current period
Changes in the current period
Beginning Charge-off Ending
Type Recovered or
balance Provision or Others balance
reversed
write-off
Trade Acceptance 548,511.17 495,534.77 540,899.62 503,146.32
Total 548,511.17 495,534.77 540,899.62 503,146.32
(4) The Company's pledged notes receivable at the end of the period
No notes receivable were pledged at the end of the current period.
(5) Notes receivable endorsed or discounted by the Company and not yet due on the balance sheet date at the
end of the period
Item Ending derecognized amount Ending un-derecognized amount
Bank Acceptance Bills 841,845,519.92 300,000.00
Trade Acceptance 23,699,692.56
Total 841,845,519.92 23,999,692.56
(6) Actual write-off of notes receivable for the current period
No notes receivable were actually written off in the current period.
(1) Accounts receivable listed by aging
Aging Ending book balance Beginning book balance
Within 1 year (inclusive) 1,006,565,494.60 872,534,288.66
Over 5 years 1,436,753,750.51 1,445,571,151.66
Total 2,871,208,051.69 2,974,845,127.49
(2) Listed by withdrawal methods for provision for bad debts
Ending balance
Book balance Provision for bad debts
Type
Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
Provision set aside for
bad debts by the single 1,533,714,952.74 53.42 1,528,067,007.07 99.63 5,647,945.67
item
Provision set aside for
bad debts by portfolio
Of which: Aging portfolio 1,337,493,098.95 46.58 306,757,875.77 22.94 1,030,735,223.18
Subtotal of portfolio 1,337,493,098.95 46.58 306,757,875.77 22.94 1,030,735,223.18
Total 2,871,208,051.69 100.00 1,834,824,882.84 63.90 1,036,383,168.85
(Continued)
Beginning balance
Book balance Provision for bad debts
Type
Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
Provision set aside for
bad debts by the single 1,573,873,380.74 52.91
item 1,537,243,420.22 97.67 36,629,960.52
Provision set aside 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
Name Beginning balance Ending balance
Provision Reasons
Provision for Provision for bad
Book balance Book balance percentage for the
bad debts debts
(%) provision
Not
CEFC Shanghai
expected to
International 298,280,558.37 298,280,558.37 298,073,128.27 298,073,128.27 100.00
be
Group Limited recoverable
Hongtu Not
Sanpower expected to
Technology Co., be
recoverable
Ltd.
Not
Luxiao Group expected to
Co., Ltd. be
recoverable
Shenzhen Not
Yaode expected to
Technology Co., be
recoverable
Ltd.
Guang'an
Expected
Ouqishi
to be
Electronic 113,139,940.86 110,965,942.46 113,139,940.86 110,965,942.46 98.08
difficult to
Technology Co., recover
Ltd.
Zhongfu Not
Tiangong expected to
Construction be
recoverable
Group Co., Ltd.
CCCC First Not
Harbor expected to
Engineering be
recoverable
Company Ltd.
Gome
Not
Customization
expected to
(Tianjin) Home 57,021,975.73 57,021,975.73 57,021,975.73 57,021,975.73 100.00
be
Appliances Co., recoverable
Ltd.
Beginning balance Ending balance
Provision Reasons
Name Provision for Provision for bad
Book balance Book balance percentage for the
bad debts debts
(%) provision
Not
Xingda Hongye expected to
(HK) Limited be
recoverable
Dongguan High Not
Energy Polymer expected to
Materials Co., be
recoverable
Ltd.
Expected
to be
Others 362,161,976.72 345,511,516.64 341,521,865.19 341,020,853.28 99.85
difficult to
recover
Total 1,573,873,380.74 1,537,243,420.22 1,533,714,952.74 1,528,067,007.07 99.63
Ending balance
Aging
Book balance Provision for bad debts Provision percentage (%)
Within 1 year 1,002,154,193.21 20,443,945.58 2.04
Over 5 years 182,491,991.45 182,491,991.45 100.00
Total 1,337,493,098.95 306,757,875.77 22.94
(3) Provision for bad debts accrued, recovered or reversed for the current period
Changes in the current period
Type Beginning balance
Provision Recovered or reversed
Provision for bad debts of
accounts receivable 15,093,788.21 55,655,984.86
Changes in the current period
Type Beginning balance
Provision Recovered or reversed
Total 1,887,916,115.34 15,093,788.21 55,655,984.86
(Continued)
Changes in the current period
Type Ending balance
Charge-off or write-off Others
Provision for bad debts of
accounts receivable -12,529,035.85 1,834,824,882.84
Total -12,529,035.85 1,834,824,882.84
Remarks: The amount of other changes during the current period includes a decrease of RMB 12,529,035.85 resulting
from foreign exchange rate movements.
(4).Actual write-off of accounts receivable for the current period
No accounts receivable were actually written off in the current period.
(5) Top five accounts receivable by the debtor in terms of the ending balance and contract assets
The total amount of accounts receivable with top five ending balance categorized by debtors in the current period was
RMB 1,086,005,807.89, accounting for 37.82% of the total ending balance of accounts receivable. The total ending
balance of provision for bad debts correspondingly set aside was RMB 803,666,036.71.
(1) Details of contract assets
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
bad debts bad debts
Warranty 2,194,100.57 414,180.09 1,779,920.48 2,194,100.57 301,794.27 1,892,306.30
Total 2,194,100.57 414,180.09 1,779,920.48 2,194,100.57 301,794.27 1,892,306.30
(2) Listed by withdrawal methods for provision for bad debts
Ending balance
Type
Book balance Provision for bad debts Book value
Provision
Percentag
Amount Amount percentag
e (%)
e (%)
Provision set aside for bad debts
by the single item
Provision set aside for bad debts
by portfolio
Of which: Aging portfolio 2,194,100.57 100.00 414,180.09 18.88 1,779,920.48
Subtotal of portfolio 2,194,100.57 100.00 414,180.09 18.88 1,779,920.48
Total 2,194,100.57 100.00 414,180.09 18.88 1,779,920.48
(Continued)
Beginning balance
Book balance Provision for bad debts
Type
Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
Provision set aside for bad debts by the
single item
Provision set aside for bad debts by
portfolio
Of which: Aging 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
Provision set aside for bad debts of contract assets by portfolio
Ending balance
Name Provision for bad Provision percentage
Book balance
debts (%)
Within 1 year
Total 2,194,100.57 414,180.09 18.88
(Continued)
Beginning balance
Name Provision for bad Provision percentage
Book balance
debts (%)
Within 1 year 561,956.93 11,463.92 2.04
Total 2,194,100.57 301,794.27 13.75
(3) Provision for bad debts accrued, recovered or reversed for the current period
Changes in the current period
Write-off/
Recovered cancellation
Beginning or reversed after Ending
Item Current period Others Reason
Balance for the verification Balance
Provision Change
current for the
period current
period
Warranty 301,794.27
provision
Total 301,794.27 112,385.82 414,180.09
(4).Actual write-off of contract assets for the current period
There were no contract assets actually written off in the current period.
Item Ending balance Beginning balance
Notes receivable 95,040,616.25 155,957,556.43
Total 95,040,616.25 155,957,556.43
Item Ending balance Beginning balance
Item Ending balance Beginning balance
Interest receivable
Dividends receivable
Other receivables 947,515,719.09 942,267,792.91
Total 947,515,719.09 942,267,792.91
(1) Classification of other receivables by nature
Nature of funds Ending book balance Beginning book balance
Deposit and margin 360,196,852.73 333,603,706.26
Intercourse funds among minority
shareholders in the business
consolidation not under the same
control and related parties
Energy-saving subsidies receivable 152,399,342.00 152,399,342.00
Intercourse funds with related parties 3,691,631,889.48 3,691,383,944.24
Others 995,408,985.51 1,022,177,199.12
Total 5,373,351,241.44 5,373,278,363.34
(2) Other receivables listed by aging
Aging Ending book balance Beginning book balance
Within 1 year (inclusive) 1,495,441,812.42 1,467,251,543.63
Over 5 years 2,860,958,323.17 2,572,576,744.55
Total 5,373,351,241.44 5,373,278,363.34
(3) Classified presentation of other receivables by provisioning methods of bad debts
Ending balance
Type
Book balance Provision for bad debts Book value
Provision
Percentage
Amount Amount percentage
(%)
(%)
Provision set aside for
bad debts by the single 4,940,834,493.88 91.95 4,206,675,772.05 85.14 734,158,721.83
item
Provision set aside for
bad debts by portfolio
Of which: Aging portfolio 189,202,997.43 3.52 156,638,249.42 82.79 32,564,748.01
Low-Risk Portfolio 243,313,750.13 4.53 62,521,500.88 25.70 180,792,249.25
Subtotal of portfolio 432,516,747.56 8.05 219,159,750.30 50.67 213,356,997.26
Total 5,373,351,241.44 100.00 4,425,835,522.35 82.37 947,515,719.09
(Continued)
Beginning balance
Book balance Provision for bad debts
Type
Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
Provision set aside for bad
debts by the single item
Provision set aside for bad
debts by portfolio
Of which: Aging 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
Ending balance
Aging Provision for bad Provision
Book balance
debts percentage (%)
Ending balance
Aging Provision for bad Provision
Book balance
debts percentage (%)
Within 1 year 59,178,138.81 850,072.98 1.44
Over 5 years 184,199,227.63 184,199,227.63 100.00
Total 432,516,747.56 219,159,750.30 50.67
Phase I Phase II Phase III
Expected credit loss Expected credit loss
Expected credit during the whole during the whole
Provision for bad debts Total
loss for the next outstanding maturity outstanding maturity
impairment) impairment)
Balance as of January 1,
Balance as of January 1,
-- Transfer to Stage II -1,195,101.69 1,195,101.69
-- Transfer to Stage III
-- Reversal to Stage II
-- Reversal to Stage I
Provision for the current
period
Reversal in this period
Charge-off in the current
period
Write-off in the current
period
Phase I Phase II Phase III
Expected credit loss Expected credit loss
Expected credit during the whole during the whole
Provision for bad debts Total
loss for the next outstanding maturity outstanding maturity
impairment) impairment)
Other changes -222,142.74 -19,308,630.70 -19,530,773.44
Balance as of June 30,
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 the credit impairment after initial confirmation. For other receivables of credit impairment that have
occurred, the loss provision is measured according to the credit losses that have occurred throughout the duration.
(4) Provision for bad debts accrued, recovered or reversed for the current period
Changes in the current period
Type Beginning balance
Provision Recovered or reversed
Provision for bad debts of other
receivables
Total 4,431,010,570.43 14,355,725.36
(Continued)
Changes in the current period
Type Ending balance
Charge-off or write-off Others
Provision for bad debts of other
-19,530,773.44 4,425,835,522.35
receivables
Total -19,530,773.44 4,425,835,522.35
Remarks: The amount of other changes during the current period includes a decrease of RMB
(5) Other receivables actually written off in the current period
There were no other receivables actually written off in the current period.
(6) Other receivables of the top five ending balances collected by debtor
The total amount of other receivables with top five ending balance categorized by debtors in the current period
was RMB 3,375,742,641.27, accounting for 62.82% of the total ending balance of other receivables. The total en
ding balance of provision for bad debts correspondingly set aside was RMB 2,966,580,596.02.
(1) Advances to suppliers are listed by aging
Ending balance Beginning balance
Item
Amount Percentage (%) Amount Percentage (%)
Within 1 year 36,158,824.66 89.30 43,005,753.50 44.75
Over 3 years 610,254.17 1.50 571,760.52 0.59
Total 40,491,336.94 100.00 96,105,739.60 100.00
Remarks: The amount of advances to suppliers of the Group aged over one year at the end of the period was RMB
goods or unsettled payments.
(2) Advances to suppliers status of the top five year-end balances collected by prepaid objects
The total amount of the top five advances to suppliers in the ending balance categorized by payees in the current period
was RMB 26,809,853.77, accounting for 66.21% of the total ending balance of advances to suppliers.
(1) Inventories Classification
Ending balance
Item
Book balance Provision for impairment Book value
Raw materials 522,460,235.37 147,392,207.13 375,068,028.24
Semi-finished products 105,620,729.21 61,062,868.77 44,557,860.44
Commodities in stock 1,701,282,761.31 819,837,791.49 881,444,969.82
Ending balance
Item
Book balance Provision for impairment Book value
Commissioned products
Development costs 33,007,613.87 13,632,674.11 19,374,939.76
Development products 192,836,422.71 38,429,041.00 154,407,381.71
Total 2,555,207,762.47 1,080,354,582.50 1,474,853,179.97
(Continued)
Beginning balance
Item
Book 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
Commodities in stock 1,946,864,898.54 893,886,141.81 1,052,978,756.73
Commissioned products 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
(2) Provision for inventory depreciation
Increase in the current period
Item Beginning balance
Provision or reversal Others
Raw materials 161,547,556.59 -1,648,753.00
Semi-finished products 61,564,204.04 1,243,646.28
Commodities in stock 893,886,141.81 35,003,356.74
Commissioned products
Development costs 13,632,674.11
Development products 38,429,041.00
Total 1,169,059,617.55 34,598,250.02
(Continued)
Item Decrease in the current period Ending balance
Charge-off Others
Raw materials 9,890,562.32 2,616,034.14 147,392,207.13
Semi-finished products 1,727,538.32 17,443.23 61,062,868.77
Commodities in stock 79,906,408.22 29,145,298.84 819,837,791.49
Commissioned products
Development costs 13,632,674.11
Development products 38,429,041.00
Total 91,524,508.86 31,778,776.21 1,080,354,582.50
Note: Other decreases for the year were due to exchange rate movements.
Specific basis for determining the realizable net value and reasons for reversal or write-off of the provision for inventory
depreciation and impairment provision for contract performance costs during the current period:
Reasons for write-off of provision for
Specific basis for provision for inventory
Item inventory depreciation in the current
depreciation
period
The realizable net value was lower than the
Raw materials Sold or used in the current period
book value
The realizable net value was lower than the
Semi-finished products Sold or used in the current period
book value
The realizable net value was lower than the
Commodities in stock Sold in the current period
book value
The realizable net value was lower than the
Development products Sold in the current year
book value
Item Ending balance Beginning balance
Prepayments and deductible taxes, and refund of
tax for export receivable
Principal and interests of entrusted loans to
associated enterprises
Deferred expenses 7,392,006.38 14,313,545.63
Cost of goods returned receivable 6,451,881.10 10,287,129.13
Others 395,607.16 434,578.55
Item Ending balance Beginning balance
Less: Impairment provision for other current assets 118,264,443.38 118,264,443.38
Total 719,531,026.32 761,567,941.76
(1) Other equity instrument investments
Increase/decrease in this period Divide
Gains Reason for
nd Losses
accumulated assigning to
income accumulated
Gains Losses into other measure at fair
Addit Decre recogn into other
Beginning included in included in comprehensi value of which
Item ional ase in Oth Ending balance ized comprehensive
balance other other ve income at changes included
inves inves ers during income at the
comprehens comprehensi the end of the other
tment tment the end of the
ive income ve income current comprehensive
current current period
period income
period
Beijing Huyu Long-term holding
Entertainment Digital 6,000,000.00 based on strategic
Technology Co., Ltd. purpose
Long-term holding
Feihong Electronics
Co., Ltd.
purpose
Shenzhen
Long-term holding
Association of
Enterprises with
purpose
Foreign Investment
Shenzhen Chuangce Long-term holding
Investment based on strategic
Increase/decrease in this period Divide
Gains Reason for
nd Losses
accumulated assigning to
income accumulated
Gains Losses into other measure at fair
Addit Decre recogn into other
Beginning included in included in comprehensi value of which
Item ional ase in Oth Ending balance ized comprehensive
balance other other ve income at changes included
inves inves ers during income at the
comprehens comprehensi the end of the other
tment tment the end of the
ive income ve income current comprehensive
current current period
period income
period
Development Co., purpose
Ltd.
Shenzhen Tianyilian Long-term holding
Science & 4,800,000.00 based on strategic
Technology Co., Ltd. purpose
Shanlian Information
Long-term holding
Technology
Engineering Center
purpose
Co., Ltd.
Shenzhen CIU Long-term holding
Science & 953,000.00 953,000.00 200,000.00 based on strategic
Technology Co., Ltd. purpose
Shanghai National Long-term holding
Engineering 2,400,000.00 2,400,000.00 based on strategic
Research Center of purpose
Increase/decrease in this period Divide
Gains Reason for
nd Losses
accumulated assigning to
income accumulated
Gains Losses into other measure at fair
Addit Decre recogn into other
Beginning included in included in comprehensi value of which
Item ional ase in Oth Ending balance ized comprehensive
balance other other ve income at changes included
inves inves ers during income at the
comprehens comprehensi the end of the other
tment tment the end of the
ive income ve income current comprehensive
current current period
period income
period
Digital TV Co., Ltd.
Guangdong Bohua
Long-term holding
Ultra High Definition
Innovation Center
purpose
Co., Ltd.
Total 10,213,810.20 10,213,810.20 16,024,190.80
(2) Derecognition in the current period
During the Reporting Period, the Group had no derecognition of other equity instrument investments.
Increase/decrease in this period
Provision for
Profit or loss of Adjustments to
Beginning balance impairment
Investee Additional Decrease in investment other
(Book value) Beginning
investment investment recognized by the comprehensive
balance
equity method income
Associates:
Kangkong Venture Capital (Shenzhen) Co., Ltd. 5,180,793.01 -69,352.93
Nanjing Zhihuiguang Information Technology
Research Institute Co., Ltd.
Feidi Technology (Shenzhen) Co., Ltd. 21,415,487.46 12,000,000.00 2,036,425.18
Shenzhen Kangyue Industrial Co., Ltd. 24,977,328.88
Kangkai Technology Service (Chengdu) Co., Ltd. 81,113.09
Puchuang Jiakang Technology Co., Ltd. 6,297,491.71 216,147.50
Shenzhen Jielunte Technology Co., Ltd. 80,165,191.30 -4,702,155.99
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.
Increase/decrease in this period
Provision for
Profit or loss of Adjustments to
Beginning balance impairment
Investee Additional Decrease in investment other
(Book value) Beginning
investment investment recognized by the comprehensive
balance
equity method income
Shenzhen RF-Llink Technology Co., Ltd. 85,656,027.35
Anhui Kaikai Shijie E-commerce Co., Ltd. 26,987,982.96 447,882,708.28 -3,085,702.70
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
Chuzhou Konka Technology Industry
Development Co., Ltd.
Chuzhou Kangjin Health Industrial Development
Co., Ltd.
Nantong Konka Technology Industrial Park
Operation Management Co., Ltd.
Chuzhou Kangxin Health Industry Development 176,837,544.74
Increase/decrease in this period
Provision for
Profit or loss of Adjustments to
Beginning balance impairment
Investee Additional Decrease in investment other
(Book value) Beginning
investment investment recognized by the comprehensive
balance
equity method income
Co., Ltd.
Dongguan Guankang Yuhong Investment Co.,
Ltd.
Shenzhen Morsemi Semiconductor Technology
Co., Ltd.
Econ Technology 718,478,701.02 471,120,597.05 -1,257,918.18
Dongguan Kangjia New Materials Technology
Co., Ltd.
Chongqing ypfun Technology Co., Ltd. 474,346,899.10 1,968,503,947.36
Yantai Kangyun Industrial Development Co., Ltd.
E3 (Hainan) Technology Co., Ltd. 14,000,000.00
Shenzhen Kangjia Jiapin Intelligent Electrical
Apparatus Technology Co., Ltd.
Shenzhen KONKA E-display Co., Ltd. 97,221,710.07 1,575,000.00
Chongqing Yuanlv Benpao Real Estate Co., Ltd. 25,740,000.00
Shenzhen Kangpeng Digital Technology Co., Ltd. 980,300.31 -800.00
Yantai Kangtang Construction Development Co., 1,123,420.70 -20,953.92
Increase/decrease in this period
Provision for
Profit or loss of Adjustments to
Beginning balance impairment
Investee Additional Decrease in investment other
(Book value) Beginning
investment investment recognized by the comprehensive
balance
equity method income
Ltd.
Dongguan Konka Smart Electronic Technology
Co., Ltd.
Beijing Konka Jingyuan Technology Co., Ltd. 621,527.36 -9,690.00
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. 6,001,292.24 306,035.64
Chongqing Kangyiqing Technology Co., Ltd. 145,424.39 -82,142.95
Zhejiang Kangying Semiconductor Technology
Co., Ltd.
KK Smartech Limited 1,601,969.45 -29,791.27
Chongqing Kangjian Photoelectric Technology
Co., Ltd.
Increase/decrease in this period
Provision for
Profit or loss of Adjustments to
Beginning balance impairment
Investee Additional Decrease in investment other
(Book value) Beginning
investment investment recognized by the comprehensive
balance
equity method income
Anhui Kangta Supply Chain Management Co.,
Ltd.
Wuhan Kangtang Information Technology Co.,
Ltd.
Sichuan Chengrui Real Estate Co., Ltd. 22,357,187.48
Jiakang Industrial Development (Wuhan) Co.,
Ltd.
Hefei KONSEMI Storage Technology Co., Ltd. 102,019,381.83 32,109,693.84
Sichuan Hongxinchen Real Estate Development
Co., Ltd.
Konka Huanjia Environmental Technology Co.,
Ltd.
Kangrong Jiayuan Technology (Zhejiang) Co.,
Ltd.
Total 2,026,038,156.99 4,203,164,752.91 28,460,999.37 428,284,698.54
Investee Increase/decrease in this period Ending balance Provision for impairment
(Book value) Ending balance
Cash
dividends or
Provision
Changes in profits
for Others
Other Equities declared to
impairment
be
distributed
Associates:
Kangkong Venture Capital (Shenzhen) Co.,
Ltd.
Nanjing Zhihuiguang Information
Technology Research Institute Co., Ltd.
Feidi Technology (Shenzhen) Co., Ltd. -1,343,802.29 10,108,110.35
Shenzhen Kangyue Industrial Co., Ltd. 24,977,328.88
Kangkai Technology Service (Chengdu)
Co., Ltd.
Puchuang Jiakang Technology Co., Ltd. 6,513,639.21
Shenzhen Jielunte Technology Co., Ltd. 75,463,035.31
Orient Excellent (Zhuhai) Asset
Management Co., Ltd.
Oriental Jiakang No. 1 (Zhuhai) Private
Equity Investment Fund (Limited 164,731,045.04
Partnership)
Tongxiang Wuzhen Kunyu Venture Capital 3,530,017.06
Co., Ltd.
Shenzhen RF-Llink Technology Co., Ltd. 85,656,027.35
Anhui Kaikai Shijie E-commerce Co., Ltd. 23,902,280.26 447,882,708.28
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
Chuzhou Konka Technology Industry
Development Co., Ltd.
Chuzhou Kangjin Health Industrial
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 717,220,782.84 471,120,597.05
Dongguan Kangjia New Materials
Technology Co., Ltd.
Chongqing ypfun Technology Co., Ltd. -586,270.19 473,760,628.91 1,968,503,947.36
Yantai Kangyun Industrial Development
Co., Ltd.
E3 (Hainan) Technology Co., Ltd. 14,000,000.00
Shenzhen Kangjia Jiapin Intelligent
Electrical Apparatus Technology Co., Ltd.
Shenzhen KONKA E-display Co., Ltd. 98,796,710.07
Chongqing Yuanlv Benpao Real Estate
Co., Ltd.
Shenzhen Kangpeng Digital Technology
Co., Ltd.
Yantai Kangtang Construction
Development Co., Ltd.
Dongguan Konka Smart Electronic
Technology Co., Ltd.
Beijing Konka Jingyuan Technology Co.,
Ltd.
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.
Chongqing Kangyiqing Technology Co.,
Ltd.
Zhejiang Kangying Semiconductor
Technology Co., Ltd.
KK Smartech Limited 1,572,178.18
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
Jiakang Industrial Development (Wuhan)
Co., Ltd.
Hefei KONSEMI Storage Technology Co.,
Ltd.
Sichuan Hongxinchen Real Estate 53,934,595.60
Development Co., Ltd.
Konka Huanjia Environmental Technology
Co., Ltd.
Kangrong Jiayuan Technology (Zhejiang)
Co., Ltd.
Total -1,930,072.48 2,423,931,783.68 4,203,164,752.91
Item Ending balance Beginning balance
Kunshan Xinjia Emerging Industry Equity Investment Fund Partnership (Limited Partnership) 93,030,890.40 119,414,203.99
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)
Yibin OCT Sanjiang Properties Co., Ltd. 174,770,775.80 175,054,364.03
Chongqing Kangxin Equity Investment Fund Limited Partnership (Limited Partnership) 122,593,706.14 145,591,716.60
Yancheng Kangyan Information Industry Investment Partnership (Limited Partnership) 135,767,513.50 135,763,664.30
Daye Trust - Hui Libao No. 19
CCB Trust-Cai Die No. 6 Property Rights Trust Scheme 300,000.00 300,000.00
Yibin Kanghui Electronic Information Industry Equity Investment Partnership (Limited Partnership) 58,967,986.53 58,967,986.53
Chuzhou Jiachen Information Technology Consulting Service Partnership (Limited Partnership)
Item Ending balance Beginning balance
Tianjin Property No. 8 Enterprise Management Partnership (Limited Partnership)
Tianjin Huacheng Property Development Co., Ltd. 1,000,000.00 1,000,000.00
Shenzhen Kanghuijia Technology Co., Ltd. 1,033.45
Subtotal of equity investments 895,255,521.08 1,015,357,256.34
Shenzhen Gaohong Enterprise Consulting Management Partnership (Limited Partnership) 120,874,956.69 120,874,956.69
Nanjing Kangfeng Dejia Asset Management Partnership (Limited Partnership)
Shenzhen Zitang No.1 Enterprise Consulting Management Partnership (Limited Partnership)
Shenzhen Beihu Technology Partnership (Limited Partnership) 15,000,000.00 15,000,000.00
Xi'an Bihuijia Enterprise Management Consulting Partnership (Limited Partnership) 7,520,520.00 7,520,520.00
Shanxi Kangmengrong Enterprise Management Consulting Partnership (Limited Partnership) 3,028,480.00 3,028,480.00
Subtotal of debt investments 146,423,956.69 146,423,956.69
Total 1,041,679,477.77 1,161,781,213.03
（1） Investment properties measured at cost
Item Properties and buildings Land use right Total
I. Original book value
(1) Purchase
Item Properties and buildings Land use right Total
(2) Transfer-in of inventories\fixed assets\construction in
progress\intangible assets
(1) Disposal
(2) Other transfer-out 146,226.41 146,226.41
II. Accumulated depreciation and accumulated amortization
(1) Provision or amortization 18,620,156.11 698,664.19 19,318,820.30
(2) Other transfer-in 7,541,491.11 7,541,491.11
(1) Disposal
(2) Other transfer-out
III. Provision for impairment
(1) Provision
Item Properties and buildings Land use right Total
(1) Disposal
(2) Other transfer-out
IV. Book value -
（2） Impairment test of investment properties measured at cost
No provision for impairment of investment properties was made during the current period.
（3） Investment properties measured at fair value
There were no investment properties measured at fair value of the Group.
（4） Investment property converted and measured at fair value in the current period
There was no investment property converted and measured at fair value in the current period.
（5） Investment properties for which property right certificates have not yet been issued
Reason that the certificate of title was not
Item Book value
completed
The completion filing has not yet been processed
Suining Konka Electronic Product Standard Factory Project 62,882,039.64
for the project
Houses and buildings of Xi'an Kanghong 87,818,314.86 In progress
Yantai Kangjin's properties and buildings 18,957,342.60 In progress
（6） Investment properties with restricted ownership or use right
Item Book value Reasons for restriction
Guangming Technology Center 319,027,884.81 As collateral for loan
Houses and buildings of Xi'an Kanghong 87,818,314.86 As collateral for loan
Houses and buildings of Nantong Kanghai 56,307,870.19 As collateral for loan
Properties and buildings of Shanxi Konka Intelligent 35,479,438.81 As collateral for loan
Total 498,633,508.67
Item Ending balance Beginning balance
Fixed assets 4,158,003,825.17 4,405,958,959.37
Liquidation of fixed assets
Total 4,158,003,825.17 4,405,958,959.37
（1） Fixed assets
Properties and Electronic Transportation Other equipment
Item Machinery equipment Total
buildings equipment vehicle
I. Original book value
(1) Purchase 10,858,082.78 1,659,260.87 26,548.69 459,722.93 13,003,615.27
(2) Transfer-in of construction in
progress
(3) Other increase 143,022.99 143,022.99
period
(1) Disposal or write-off 11,847,249.96 1,991,256.53 544,031.91 1,395,380.69 15,777,919.09
(2) Decrease for loss of
controlling right
(3) Other decreases 121,424,791.42 22,790.89 522.52 1,446.79 121,449,551.62
II. Accumulated depreciation
Properties and Electronic Transportation Other equipment
Item Machinery equipment Total
buildings equipment vehicle
(1) Provision 45,318,637.68 89,096,594.89 8,016,980.74 948,008.62 4,496,516.95 147,876,738.88
(2) Other increase 205,398.33 200,088.47 405,486.80
period
(1) Disposal or write-off 10,234,746.18 1,631,567.08 380,769.49 1,115,699.46 13,362,782.21
(2) Decrease for loss of
controlling right
(3) Other decreases 7,541,491.11 20,519.07 470.28 1,302.11 7,563,782.57
III. Provision for impairment
(1) Provision 30,763.46 30,763.46
(2) Other increase
period
Properties and Electronic Transportation Other equipment
Item Machinery equipment Total
buildings equipment vehicle
(1) Disposal or write-off 441,455.11 16,365.48 101,277.23 559,097.82
(2) Decrease for loss of
controlling right
(3) Other decreases
IV. Book value
the period
beginning of the period
(2) Temporarily idle fixed assets
Accumulated Provision for
Item Original book value Book value
depreciation impairment
Housing and
building
Machinery
equipment
Electronic
equipment
Transportation
vehicle
Other equipment 36,288,637.87 32,479,724.01 3,450,958.92 357,954.94
Total 1,544,994,293.57 1,030,745,043.32 431,375,777.06 82,873,473.19
(3)Fixed assets leased out through operating leases
Item Ending book value
Housing and building 130,490,724.77
Machinery equipment 2,004,486.58
Electronic equipment 139,076.29
Transportation vehicle 312.63
Other equipment 158,932.12
Total 132,793,532.39
(4) Fixed assets without certificate of title
Reason that the certificate
Item Book value
of title was not completed
Fenggang Konka Smart TV
Project
Anhui Konka's properties and
buildings
Standard electronic product The completion filing has not
plants in Sunning project
Yikang Building property 30,225,446.45 In progress
Frestec Smart Home
properties and buildings
(5) Fixed assets with restricted ownership or use right
Item Ending book value Reasons for restriction
Anhui Konka's properties and buildings 564,357,471.78 As collateral for loan
Properties and buildings of Shanxi Konka
Intelligent
Buildings and machinery and equipment
of Frestec Smart Home
Buildings of Chongqing Konka 171,758,947.82 As collateral for loan
Buildings of Anhui Tongchuang 127,953,305.69 Mortgage for invoicing
Properties and buildings of Frestec
Refrigeration
Buildings of Konka Group 48,673,311.68 As collateral for loan
Buildings of Jiangsu Konka Smart 28,831,239.76 As collateral for loan
Housing and buildings of XingDa HongYe 22,477,360.51 As collateral for loan
Machinery equipment of Xinfeng As collateral for finance
Microcrystalline lease
Housing and buildings of Jiangxi Konka Original shareholder
guarantee mortgage
Machinery and equipment of Bokang
Precision
Total 1,535,396,516.05
（1） Construction in progress
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Jiangxi High-permeability Crystalisation Kiln 246,576,748.57 245,645,748.57 931,000.00 246,576,748.57 245,645,748.57 931,000.00
Construction of Suining Electronic Industrial Park
Workshops 159,579,630.91 79,545,109.40 80,034,521.51
Suining Konka Hongye Plant Decoration Project 119,865,611.74 119,865,611.74 119,870,565.87 119,870,565.87
Production Line Renovation Project of Jiangxi
Konka 77,761,891.85 71,639,231.85 6,122,660.00
Construction and Decoration Project of Phase I of
Dongguan Konka Science and Technology 41,073,754.17 41,073,754.17 41,073,754.17 41,073,754.17
Industrial Park
Other projects 354,108,174.06 84,469,891.23 269,638,282.83 352,832,974.12 84,469,891.23 268,363,082.89
Total 998,965,811.30 481,299,981.05 517,665,830.25 997,637,462.98 481,299,981.05 516,337,481.93
（2） Changes of significant construction in progress in the current period
Name Beginning Increase in the Decrease in the current period Ending balance
balance current period
Transfer to fixed
Other decreases
assets
Construction of Suining Electronic Industrial Park Workshops 159,521,528.40 58,102.51 159,579,630.91
Suining Konka Hongye Plant Decoration Project 119,870,565.87 4,954.13 119,865,611.74
Total 279,392,094.27 58,102.51 4,954.13 279,445,242.65
(Continued)
Including: Capitalization
Proportion of the Accumulated
Capitalized rate of the
Budget amount (RMB project Engineering amount of Source of
Name amount of interests for the
ten thousand yuan) accumulative input Schedule (%) interest funds
interest in the current period
in budget (%) capitalization
current period (%)
Construction of Suining Electronic
Industrial Park Workshops
Suining Konka Hongye Plant Own funds
Decoration Project 13,774.10 87 87 and bank
loans
Total 90,116.32
（3） Provision for impairment of construction in progress in the current period
Increase in the current Decrease in the
Type Beginning balance Ending balance Reason for withdrawal
period current period
Work has been suspended
Jiangxi High-permeability
Crystallisation Kiln Project
Work has been suspended
Jiangxi High-permeability Substrate
Production Line Project
Work has been suspended
Jiangxi Konka Production Line
Renovation Project
Work has been suspended
Suining Konka Flexible FPC Plant
Equipment Installation
Construction of Suining Electronic
Industrial Park Workshops 79,545,109.40
Work has been suspended
Other projects 97,320.53 97,320.53 and there are no future
development plans
Total 481,299,981.05 481,299,981.05
Properties and buildings Machinery equipment Electronic
Item Total
equipment
I. Original book value
period
(1) Leased-in 1,556,922.37 1,556,922.37
(2) Others
period
(1) Decrease for loss of
controlling right
(2) Others 44,546,886.64 44,546,886.64
II. Accumulated depreciation
Properties and buildings Machinery equipment Electronic
Item Total
equipment
period
(1) Provision 22,610,974.70 500,088.82 88,699.75 23,199,763.27
(2) Others
period
(1) Decrease for loss of
controlling right
(2) Others 39,733,154.97 39,733,154.97
III. Provision for impairment
period
(1) Provision
period
(1) Disposal
Properties and buildings Machinery equipment Electronic
Item Total
equipment
IV. Book value
of the period
beginning of the period
Remarks: The other decreases in original value and accumulated depreciation are mainly due to the termination of leases.
（1） List of intangible assets
Trademark Right to use software
Item Land use right Patent and know-how Franchise rights Total
rights and others
I. Original book value
(1) Purchase 206,303.13 206,303.13
(2) Transfer-in of construction in
Trademark Right to use software
Item Land use right Patent and know-how Franchise rights Total
rights and others
progress
(3) Other reasons
(1) Disposal or write-off 2,785,091.01 2,785,091.01
(2) Other reasons 6,421.01 6,421.01
II. Accumulated amortization
(1) Provision 8,045,274.87 2,081,757.98 21,600.00 135,876.11 5,085,032.49 15,369,541.45
(2) Other reasons
(1) Disposal or write-off 2,600,610.87 2,600,610.87
(2) Other reasons 2,673.36 2,673.36
Trademark Right to use software
Item Land use right Patent and know-how Franchise rights Total
rights and others
III. Provision for impairment
(1) Provision
(1) Disposal
IV. Book value
period
of the period
（2） Details of land use right without certificate of title
The Group did not have land use rights for which no title deeds had been issued.
（3） Significant intangible assets
Remaining amortization period
Item Ending book value
(year)
Land use right of Dongguan Konka 175,659,152.67 43.17
Land use right of Shanxi Konka Intelligent 108,443,575.29 45.08
Land use right of Frestec Smart Home 85,440,790.85 44.25
Total 369,543,518.81
（4） Intangible assets with restricted ownership or use right
Item Ending book value Reasons for restriction
Land use right of Dongguan Konka 175,659,152.67 As collateral for loan
Land use right of Shanxi Konka Intelligent 108,443,575.29 As collateral for loan
Land use right of Frestec Refrigeration 58,967,091.22 As collateral for loan
Land use right of Anhui Konka 50,873,316.00 As collateral for loan
Land use right of Chongqing Konka 16,438,690.50 As collateral for loan
Land use right of Anhui Tongchuang 16,232,513.95 As collateral for loan
Land use right of Jiangsu Konka Smart 12,569,664.89 As collateral for loan
Land use right of Xingda Hongye 11,941,907.80 As collateral for loan
Land use right of Konka Guangming
Technology Center
Total 454,569,443.56
（1） Original Book Value of Goodwill
Increase in the current Decrease in the
Name of investee Beginning balance Ending balance
period current period
Formed
through
Others Disposal Others
business
combinations
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 goodwill impairment
Increase in the current Decrease in the
Name of investee Beginning balance period current period Ending balance
Provision Others Disposal Others
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
Other decreases
Increase in the Amortization in
Item Beginning balance in the current Ending balance
current period the current period
period
Decoration
expenses 215,405,663.24
Shoppe
expense 12,771,506.31
Others 195,225,802.47 24,297,348.99 30,420,752.85 154,078.48 188,948,320.13
Total 453,962,117.69 30,678,803.51 66,163,656.40 1,351,775.12 417,125,489.68
（1） Deferred tax assets that have not been offset
Ending balance Beginning balance
Deductible Deductible
Item
temporary deferred tax assets temporary deferred tax assets
differences differences
Ending balance Beginning balance
Deductible Deductible
Item
temporary deferred tax assets temporary deferred tax assets
differences differences
Deductible losses 115,149,745.75 24,141,630.16 115,441,836.02 24,185,449.41
Provision for asset
impairment
Deferred income 133,428,267.99 27,530,898.33 126,029,904.75 26,299,979.55
Accrued expenses 1,408,415.86 352,103.97 79,260.20 19,815.05
Unrealized profit of
internal transactions
Lease liabilities 163,960,811.19 40,688,933.79 128,733,917.69 31,923,273.77
Others 1,966,186.85 490,899.50 47,323,319.31 11,257,154.20
Total 476,538,772.34 107,731,524.60 474,116,294.77 106,993,555.63
（2） Deferred tax liabilities that have not been offset
Ending balance Beginning balance
Item taxable temporary deferred tax taxable temporary deferred tax
differences liabilities differences liabilities
Estimated added value of
assets not under the same 128,360,039.55 28,912,483.52 131,234,455.38 28,976,378.21
control
Prepaid interest 8,677,666.72 2,169,416.68 16,906,513.97 4,226,628.50
Financial assets measured
at fair value through current 120,167,573.52 30,041,893.38 165,075,229.25 41,268,807.31
profit or loss
Right-of-use assets 105,967,380.23 26,222,119.03 125,148,918.49 31,020,361.63
Others 52,050,516.84 8,651,400.13 53,694,103.36 8,982,879.15
Total 415,223,176.86 95,997,312.74 492,059,220.45 114,475,054.80
（3） Breakdown of unrecognized deferred tax assets
Item Ending balance Beginning balance
Deductible losses 10,118,867,239.92 10,631,764,118.90
Item Ending balance Beginning balance
Deductible temporary differences 14,993,536,548.14 14,733,642,383.21
Total 25,112,403,788.06 25,365,406,502.11
（4） Deductible losses of unrecognized deferred tax assets matured/will mature in the following year
Year Ending amount Beginning amount
Total 10,118,867,239.92 10,631,764,118.90
Ending balance
Item Provision for
Book 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 110,715,970.58 110,715,970.58
assets
Total 1,140,173,473.50 517,841,855.90 622,331,617.60
(Continued)
Beginning balance
Item Provision for
Book 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
Ending
Item Type of
Book balance Book value Restriction details
restriction
Among them, RMB 202,348,614.05 is
the margin deposit, which is pledged
for borrowing or issuing bank
Time
acceptance bills; RMB 440,277,833.44
Monetary assets 812,653,044.81 812,653,044.81 deposit,
is a time deposit that cannot be
margins, etc.
withdrawn in advance; RMB
other reasons.
Accounts
receivable
Inventories 179,824,601.36 149,696,486.22 Mortgage As collateral for loan
Investment
properties
As collateral for finance lease, loan,
Fixed assets 2,060,863,393.14 1,535,396,516.05 Mortgage
and former shareholder guarantee
Intangible assets 567,108,433.14 454,569,443.56 Mortgage As collateral for loan
Total 4,481,158,414.11 3,453,585,999.15
(Continued)
Beginning
Item Type of
Book balance Book value Restriction details
restriction
Among them, RMB
deposits which is pledged for
Margin, time borrowings or issuing bank
Monetary assets 1,293,472,374.79 1,293,472,374.79 deposits, acceptance bills; RMB
etc. 612,670,635.63 represents time
deposits that are not available for
early withdrawal and are pledged
as collateral for borrowings; RMB
Beginning
Item Type of
Book balance Book value Restriction details
restriction
to other reasons.
Accounts
receivable
Inventories 213,889,093.11 161,827,378.00 Mortgage As collateral for loan
Investment
properties
As collateral for finance lease,
Fixed assets 2,159,388,777.59 1,619,724,502.81 Mortgage loan, and former shareholder
guarantee
Intangible assets 567,108,433.14 486,364,529.83 Mortgage As collateral for loan
Total 5,024,555,296.97 4,008,163,686.19
（1） Classification of short-term borrowings
Type of borrowings Ending balance Beginning balance
Unsecured loan 2,056,310,788.93 3,736,619,333.91
Guaranteed loan 98,647,583.30 449,087,810.41
As collateral for loan 317,505,916.65 390,208,408.34
Total 2,472,464,288.88 4,575,915,552.66
（2） Outstanding short-term borrowings overdue
There were no outstanding short-term borrowings overdue at the end of the current period.
Type of note Ending balance Beginning balance
Bank Acceptance Bills 538,889,419.28 653,949,070.29
Trade Acceptance 200,898,675.06 289,868,697.62
Total 739,788,094.34 943,817,767.91
（1） List of accounts payable
Item Ending balance Beginning balance
Within 1 year 1,342,651,773.48 1,392,600,370.15
Over 3 years 281,500,141.37 202,058,868.16
Total 1,800,540,624.79 1,977,736,371.29
（2） Significant accounts payable with aging over 1 year or overdue
Reason for non-repayment or
Unit Ending balance
carry-over
Company A 102,759,114.76 Pending settlement
Final payment for the project not yet
Company B 76,528,489.81
settled
Final payment for the project not yet
Company C 42,192,153.10
settled
Company D 32,189,624.82 Pending settlement
Company E 31,236,458.00 Pending settlement
Company F 30,327,400.00 In litigation
Company G 30,159,458.13 Pending settlement
Company H 10,600,000.00 Pending settlement
Total 355,992,698.62
Item Ending balance Beginning balance
Interest payable
Dividends payable
Other payables 4,345,738,069.13 6,565,100,788.16
Total 4,345,738,069.13 6,565,100,788.16
（1） Other accounts payable presented based on the fund nature
Nature of funds Ending balance Beginning balance
Expenses payable 739,356,871.92 792,764,274.26
Security deposit, down payment, and
deposit
Trading funds 1,146,021,076.86 1,163,502,426.04
Advance payment 3,722,771.30 3,860,617.67
Related party borrowing 200,772,321.14 2,395,873,661.72
Equity payable 1,907,063,594.47 1,870,346,451.75
Others 77,799,839.22 65,894,747.82
Total 4,345,738,069.13 6,565,100,788.16
（2） Significant other accounts payable with an age of more than one year or overdue
Reason for non-repayment or
Unit Ending balance
carry-over
Equity repurchase funds and interest
Company I 1,469,134,969.86 under the IPO valuation adjustment
agreements of E3
Company J 227,514,913.68 Accrued 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 13,907,467.86 Installment payments
Company Q 13,618,181.08 Payment conditions not met
Company R 12,780,275.13 Pending settlement
Total 1,936,417,488.66
Type Ending balance Beginning balance
Rent 3,027,128.01 3,426,361.65
Total 3,027,128.01 3,426,361.65
（1） Contract liabilities
Item Ending balance Beginning balance
Sales advances received 168,122,219.32 256,506,499.39
Total 168,122,219.32 256,506,499.39
Remarks: Contract liabilities over one year are detailed in Note "VIII. 41. Other Non-current Liabilities".
（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 period.
（3） Significant changes in book value in the current period
There were no significant changes in book value in the current period.
（1） List of payrolls payable
Increase in the Decrease in the
Item Beginning balance Ending balance
current period current period
Short-term remuneration 212,749,450.64 509,870,191.40 526,499,070.40 196,120,571.64
Post-employment
benefits-defined 1,134,850.74 50,704,431.96 49,832,864.27 2,006,418.43
contribution plans
Dismissal benefits 9,291,211.72 88,455,901.74 58,240,882.35 39,506,231.11
Total 223,175,513.10 649,030,525.10 634,572,817.02 237,633,221.18
（2） Short-term remuneration
Increase in the Decrease in the
Item Beginning balance Ending balance
current period current period
Salaries, bonuses,
allowances and subsidies
Employee benefits 2,571,832.63 20,718,690.13 20,260,249.51 3,030,273.25
Social insurance premiums 534,462.57 23,840,639.25 23,773,047.91 602,053.91
Including: Medical
insurance premiums
Increase in the Decrease in the
Item Beginning balance Ending balance
current period current period
Work injury insurance
premiums
Maternity insurance
premiums
Housing fund 548,265.52 18,210,798.43 17,600,553.86 1,158,510.09
Labour union funds and
education funds
Others 75,640.77 264,844.04 323,557.69 16,927.12
Total 212,749,450.64 509,870,191.40 526,499,070.40 196,120,571.64
（3） Defined contribution plans
Increase in the Decrease in the
Item Beginning balance Ending balance
current period current period
Basic endowment
management insurance
Unemployment insurance
premiums
Total 1,134,850.74 50,704,431.96 49,832,864.27 2,006,418.43
Item Ending balance Beginning balance
Property tax 14,923,915.86 7,873,067.23
Value-added tax 9,309,660.60 41,389,783.89
Enterprise income tax 5,581,481.56 2,902,794.24
Land value increment tax 5,126,676.88 4,541,408.65
Land use tax 4,361,936.47 2,955,305.79
Stamp duty 3,292,662.00 5,189,868.71
Personal income tax 1,798,390.21 2,404,290.78
Tariff 1,493,943.50 1,544,659.31
City construction and maintenance tax 314,442.79 1,090,729.63
Item Ending balance Beginning balance
Education fees and local education surcharge 283,040.15 804,441.46
Others 1,735,835.88 579,905.73
Total 48,221,985.90 71,276,255.42
Item Ending balance Beginning balance
Long-term borrowings due within one year 1,219,878,426.74 1,610,967,861.49
Bonds payable due within one year 836,087,928.67 1,997,255,226.21
Long-term payables due within one year
Lease liabilities due within one year 38,236,969.07 42,617,527.51
Total 2,094,203,324.48 3,650,840,615.21
Item Ending balance Beginning balance
Accounts payable paid by endorsement of
outstanding notes at the end of the Reporting 23,699,692.56 25,720,556.07
Period
Tax to be charged off 8,695,239.60 9,709,568.79
Refunds payable 6,640,858.12 10,947,147.43
Total 39,035,790.28 46,377,272.29
Type of borrowings Ending balance Beginning balance
Guaranteed loan 706,294,185.84 1,255,126,167.17
Unsecured loan 9,170,327,422.20 5,466,646,895.34
As collateral for loan 1,054,539,393.22 1,044,296,964.74
In pledge for loan 413,447,610.01 382,824,571.78
Less: Amount due within one year (see Note 1,219,878,426.74
VIII.32)
Total 10,124,730,184.53 6,537,926,737.54
(1) Classification of bonds payable
Item Ending balance Beginning balance
Corporate bonds 1,624,809,022.97 3,593,930,102.58
Less: Bonds payable due within one year (see
Note VIII.32)
Total 788,721,094.30 1,596,674,876.37
(2) Changes in bonds payable
Bon
Amortizatio Def
coup d Accrue Repayment in
Beginning Issued in the n of ault
Name Total par value on Issue date mat Issue amount interest by par the current Ending balance
balance current period premium/dis stat
rate urit value period
count us
y
Konka 3
(Remark %
s
①)
Konka 3
(Remark %
s
②)
Konka 3
% 404,380,997.89
(Remark
s
③)
Konka 3
% 409,709,819.71
(Remark
s
④)
Bon
Amortizatio Def
coup d Accrue Repayment in
Beginning Issued in the n of ault
Name Total par value on Issue date mat Issue amount interest by par the current Ending balance
balance current period premium/dis stat
rate urit value period
count us
y
Konka 3
% 810,718,205.37
(Remark s
⑤)
Total 3,500,000,000.00 3,488,800,000.00 3,593,930,102.58 34,172,777.85 3,176,142.54 2,006,470,000.00 1,624,809,022.97
Remark ①: "24 Konka 01" holds a term of 3 years, with an issuer's option to adjust the coupon rate and an investor's put option at the end of the second year. On December 12,
Securities Depository and Clearing Co., Ltd., the number of valid put bonds declared for "24 Konka 01" during the put registration period was 15,000,000.00, with 0 not put, and
the put amount was RMB 1,500,000,000.00. As "24 Konka 01" was fully put back, it was delisted from the Shenzhen Stock Exchange after the interest from January 29, 2025 to
January 29, 2026 and the put principal of "24 Konka 01" were paid on January 29, 2026.
Remark ②: "24 Konka 02" holds a term of 3 years, with an issuer's option to adjust the coupon rate and an investor's put option at the end of the second year. On January 22,
Securities Depository and Clearing Co., Ltd., the number of valid put bonds declared for "24 Konka 02" during the put registration period was 4,000,000.00, with 0 not put, and
the put amount was RMB 400,000,000.00. As "24 Konka 02" was fully put back, it was delisted from the Shenzhen Stock Exchange after the interest from March 18, 2025 to
March 17, 2026 and the put principal of "24 Konka 02" were paid on March 18, 2026.
Remark ③: 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, 2027.
Remark ④: On June 23, 2025, the Company issued RMB410 million of private placement corporate bonds with a duration of three years (with an investor's put option and an
issuer's option to adjust the coupon rate at the end of the second year), an annual interest rate of 3.50%, and a maturity date of June 23, 2028.
Remark ⑤: On July 4, 2025, the Company issued RMB790 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.
Remark ⑥: China Resources Co., Ltd. provides a full, unconditional, and irrevocable joint and several liability guarantee for the due payment of these public and private
placement corporate bonds.
Item Ending balance Beginning balance
Lease liabilities 113,859,308.14 139,476,496.26
Less: Lease liabilities due within one year (see
Note VIII.32)
Total 75,622,339.07 96,858,968.75
Item Ending balance Beginning balance
Accrued finance lease outlay 1,184,362.72 2,113,713.86
Less: Unrecognized financing expenses 32,123.55 80,486.84
Amount above due within one year (see Note
VIII.32)
Total 1,152,239.17 2,033,227.02
Item Ending balance Beginning balance
Termination benefits-net liabilities of defined
contribution plans
Total 4,477,769.97 4,519,491.87
Item Ending balance Beginning balance Reason for formation
Pending litigation 446,578,909.85 446,591,769.85
Performance
compensation, or 346,222,251.09 346,222,251.09
contingent consideration
Product quality assurance After-sales services for
home appliance
products under the
"Three Guarantees"
Item Ending balance Beginning balance Reason for formation
policy
Discard expenses 2,279,280.13 2,084,301.83
Total 851,290,214.61 852,722,866.97
(1) Classification of deferred income
Beginning Increase in the Decrease in the Ending Reason for
Item
balance current period current period balance formation
Government Related to
Grants assets/income
Total 408,175,795.51 11,830,000.00 14,248,948.14 405,756,847.37
(2) Government subsidy projects
Amount Amount
Subsidy recognized as recognized as Related to
Beginning
Government subsidy items increase in the non-operating other income in Other changes Ending balance assets/inco
balance
current period revenue for the the current me
current period period
Plant construction subsidy for Related to
assets
Yibin Konka Industrial Park
Medical waste centralized
Related to
treatment project in Gaoxian 30,700,281.06 1,173,898.01 29,526,383.05
assets
County, Yibin City
Rewards and subsidies for
Special Project for Supporting
the Development of Advanced Related to
assets
Manufacturing and Modern
Service Industry of Henan
Frestec Smart Home
Shenzhen Industrial
Investment Project Support Related to
assets
Program for Konka Group
Headquarters
Industrial support funds for Related to
assets
Suining Konka Industrial Park
Amount Amount
Subsidy recognized as recognized as Related to
Beginning
Government subsidy items increase in the non-operating other income in Other changes Ending balance assets/inco
balance
current period revenue for the the current me
current period period
Industrial rewards and
Related to
subsidies of Henan Frestec 19,253,579.48 240,676.73 19,012,902.75
assets
Smart Home
Shaanxi Konka Smart's
equipment renewal supported Related to
assets
by ultra-long-term special
treasury bonds
Returned payments for land by Related to
assets
Chongqing Konka
Plant decoration subsidy for
Related to
Yibin Konka Science and 9,771,835.06 977,183.46 8,794,651.60
assets
Technology Industrial Park
Other government subsidies Related to
related to assets/income e
Total 408,175,795.51 11,830,000.00 14,248,948.14 405,756,847.37
Item Ending balance Beginning balance
Contract liabilities over one year 201,898,911.52 283,739,354.36
Total 201,898,911.52 283,739,354.36
Changes during the period (+, -)
Share
s as Shares as
divide dividend
Item Beginning balance New nd converted Ending balance
Others Subtotal
issues conve from
rted capital
from reserves
profit
Total shares 2,407,945,408.00 2,407,945,408.00
Outstanding financial Beginning balance 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 Ending balance
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 period current period
Other capital
reserves
Total 406,579,870.80 406,579,870.80
Amount in the current period
Less:
Amount
Less: Amount
recognized
recognized as
as other
other
comprehensi
Amount before comprehensive Less: Attributable to Attributable to
Beginning ve income in
Item income tax in the income in the Income the parent minority Ending balance
balance the previous
current period previous period tax company after shareholders
period and
and transferred expense tax after tax
transferred to
to profit or loss
retained
in the Reporting
earnings in
Period
the Reporting
Period
I. Other comprehensive income
that cannot be reclassified as -12,300,000.00 -12,300,000.00
profits or losses
Including: changes in fair value
of other equity instrument -12,300,000.00 -12,300,000.00
investments
II. Other comprehensive income
reclassified as profits and losses
Amount in the current period
Less:
Amount
Less: Amount
recognized
recognized as
as other
other
comprehensi
Amount before comprehensive Less: Attributable to Attributable to
Beginning ve income in
Item income tax in the income in the Income the parent minority Ending balance
balance the previous
current period previous period tax company after shareholders
period and
and transferred expense tax after tax
transferred to
to profit or loss
retained
in the Reporting
earnings in
Period
the Reporting
Period
Including: Other comprehensive
income that can be transferred to
-416,169.81 -416,169.81
profits or losses under the equity
method
Exchange difference on
translating foreign operations
Total of other comprehensive
-1,866,392.91 49,690,521.61 24,135,366.27 25,555,155.34 22,268,973.36
income
Increase in the Decrease in the
Item Beginning balance Ending balance
current period current period
Safety production
fund
Total 17,197,144.62 5,215,909.48 800,012.65 21,613,041.45
Increase in the Decrease in the
Item Beginning balance Ending balance
current period current period
Statutory surplus
reserves
Discretionary
surplus reserves
Total 1,244,180,364.24 1,244,180,364.24
Item Current period Previous period
Retained earnings as at the end of the previous
-15,157,108,084.70 -1,797,506,898.08
period before the adjustment
Adjustment to total undistributed profits at the
beginning of the period (+ for increase and - for -777,201,329.82
decrease)
Undistributed profits at the beginning of the period
-15,157,108,084.70 -2,574,708,227.90
after adjustment
Plus: Net profit attributable to owners of the parent
-172,780,295.60 -12,582,399,856.80
company in this period
Capital reserves used to offset losses
Less: Appropriation of statutory surplus reserves
Ordinary share dividends payable
Balance at the end of the current period -15,329,888,380.30 -15,157,108,084.70
（1） Operating revenue and cost of sales
Item Amount in the current period Amount in the previous period
Amount in the current period Amount in the previous period
Item
Income Cost Income Cost
Principal
activity
Other
businesses
Total 3,851,571,370.34 3,604,823,925.05 5,247,507,849.27 4,982,943,214.69
（2） Information on the breakdown of operating revenue and cost of sales
Amount in the current period Amount in the previous period
Category of
contracts
operating revenue Cost of sales operating revenue Cost of sales
Business type
Including: White TV 1,910,578,496.64 1,809,196,805.16 2,095,189,645.55 1,973,305,089.16
Color TV 1,205,726,825.37 1,188,432,239.08 2,244,724,045.65 2,235,973,005.98
PCB business 215,705,064.25 212,005,859.93 263,122,283.88 237,844,625.04
Semiconductor and
memory chip 125,159,148.68 88,637,175.43 97,383,684.29 102,190,984.23
business
Other businesses 394,401,835.40 306,551,845.45 547,088,189.90 433,629,510.28
Total 3,851,571,370.34 3,604,823,925.05 5,247,507,849.27 4,982,943,214.69
Classified by
operating region
Of which: Domestic 2,712,328,151.23 2,537,337,472.26 3,538,077,644.56 3,338,376,377.57
Overseas 1,139,243,219.11 1,067,486,452.79 1,709,430,204.71 1,644,566,837.12
Total 3,851,571,370.34 3,604,823,925.05 5,247,507,849.27 4,982,943,214.69
（3） Information in relation to the trade price apportioned to the residual contract
performance obligation
The amount of revenue corresponding to the performance obligations that had been
signed but not yet performed or not yet completed at the end of the Reporting Period
was RMB316,451,499.01, of which RMB267,049,245.50 was expected to be recognized
as revenue in 2026, RMB38,133,211.98 was expected to be recognized as revenue in
thereafter.
Item Amount in the current period Amount in the previous period
Property tax 24,601,454.65 24,311,180.40
Stamp duty 7,729,010.84 14,065,831.49
Item Amount in the current period Amount in the previous period
Land use tax 9,986,123.66 9,424,136.83
Urban maintenance and
construction tax
Education surcharge 1,643,024.25 955,454.58
Local education surcharge 1,095,196.87 636,968.01
Water resources fund 228,849.27 393,355.44
Others 981,314.16 1,058,794.12
Total 49,683,161.07 52,857,828.76
Item Amount in the current period Amount in the previous period
Employee Compensation 213,931,965.46 133,183,343.18
Depreciation charges 58,301,318.59 104,104,411.98
Intermediary fees 5,517,270.77 10,436,533.14
Travel expenses 1,856,916.58 2,127,820.45
Water and electricity expenses 3,357,130.99 6,399,979.25
Loss on scrapping of
inventories
Others 20,193,378.38 16,444,914.27
Total 303,383,408.92 273,646,470.76
Item Amount in the current period Amount in the previous period
Employee Compensation 115,930,560.15 148,789,207.61
Advertising expense 9,509,453.07 42,199,803.07
Promotional activities 40,347,829.09 52,144,952.78
Logistics fee 17,824,812.57 26,982,858.70
Travel expenses 5,004,339.87 8,395,457.65
Lease expense 4,015,758.60 3,584,938.17
Entertainment fees 1,770,973.97 4,397,168.37
Exhibition fees 1,198,514.66 794,856.72
Others 12,981,958.49 18,236,171.59
Total 208,584,200.47 305,525,414.66
Item Amount in the current period Amount in the previous period
Labor costs 90,024,002.59 96,735,140.30
Depreciation and amortization
expenses
New product trial production
expense
Material expense 3,482,379.47 9,793,459.90
Commission service fee 28,728.16 134,759.46
Testing expense 1,406,384.01 1,604,963.68
Information use fee 256,060.64 308,099.64
Others 16,568,259.49 18,803,996.32
Total 168,365,167.60 187,951,295.68
Amount in the current Amount in the previous
Item
period period
Interest expense 312,546,386.07 350,360,105.59
Less: Interest income 105,092,356.22 72,105,599.49
Add: Exchange loss 86,080,919.42 12,128,908.22
Other expenses 1,254,565.19 20,345,947.47
Total 294,789,514.46 310,729,361.79
Amount in the current Amount in the previous
Sources of other income
period period
Support funds 192,783.00 14,558,900.00
Rewards and subsidies 395,973.49 8,415,646.07
Transfer of deferred income 14,248,948.14 16,988,800.86
Tax rebates on software 2,578,908.20 252,760.60
Post subsidies 217,142.33 304,630.24
Subsidies for L/C exports 593,228.69 450,000.00
Others 961,341.92
Total 19,188,325.77 40,970,737.77
Sources of gains from changes in the Amount in the current Amount in the previous
fair value period period
Financial assets measured at fair value
through current profit or loss
Total 62,041,331.96 173,409,194.85
Amount in the current Amount in the previous
Item
period period
Returns on long-term equity investments
calculated by the equity method
Return on investment arising from the
disposal of long-term equity investments
Conversion of long-term equity
investments accounted for by the equity 655,666,680.89
method to financial assets
Gains from remeasurement of residual
stock rights at fair value after losing control 51,916.92
power
Interest income from debt investments
during the holding period
Investment income from financial assets
held for trading during the holding period
Income from the derecognition of financial
-1,192,931.11 -2,541,005.90
assets at amortized cost
Investment income from disposal of
financial assets measured at fair value -6,211,289.14 -73,011,755.91
through profit or loss
Total 430,062,360.56 540,347,018.43
Amount in the current Amount in the previous
Item
period period
Bad debt loss of notes receivable 45,364.85 24,121.03
Bad debt loss of accounts receivable 40,562,196.65 -40,844,738.44
Bad debt loss of other accounts receivable -14,355,725.36 -76,271,800.35
Total 26,251,836.14 -117,092,417.76
Amount in the current Amount in the previous
Item
period period
Inventory depreciation loss and contract
-34,598,250.02 -85,468,130.96
performance cost impairment loss
Impairment loss on fixed assets -30,763.46
Amount in the current Amount in the previous
Item
period period
Contractual asset impairment loss -112,385.82 64,275.10
Total -34,741,399.30 -85,403,855.86
Amount in the current Amount in the
Item
period previous period
Gains on disposal of non-current assets -105,935.16 31,513,481.94
Including: gains on disposal of non-current
-105,935.16 31,513,481.94
assets not classified as held-for-sale assets
Including: gains on disposal of fixed assets -105,935.16 30,906,667.28
Gains on disposal of right-of-use assets 606,814.66
Total -105,935.16 31,513,481.94
（1） Details of non-operating revenue
Amount included in
Amount in the Amount in the the current
Item
current period previous period non-recurring profit
or loss
Compensation and penalty income 3,056,319.77 2,742,411.30 3,056,319.77
Non-current assets damage and
retirement gains
Others 3,707,421.34 6,291,648.09 3,707,421.34
Total 6,832,779.85 9,302,209.51 6,832,779.85
（2） Government grants recognized as profit or loss of the Reporting Period
The Group had no government grants included in the current profit or loss in the current period.
Amount included in
Amount for the the current
Item Current amount
previous period non-recurring profit
or loss
Losses on damage and scraping of
non-current assets
Compensation expense 90,864.70 119,454.41 90,864.70
Others 3,320,705.44 2,306,994.33 3,320,705.44
Total 3,897,492.47 3,650,200.98 3,897,492.47
（1） Income tax expense
Amount in the previous
Item Amount in the current period
period
Income tax expense in the current
year
Deferred income tax expense -20,712,597.66 205,603,500.30
Total -8,544,396.99 220,369,507.92
（2） Adjustment process of accounting profits and income tax expenses
Item Amount in the current period
Total consolidated profit in the current period -272,426,199.88
Income tax expense calculated at legal/applicable tax rate -68,106,549.97
Impact of different tax rates applied by subsidiaries 11,473,101.82
Impact of income tax in the periods before adjustment 4,707,193.17
Impact of non-taxable income -266,863,072.66
Impacts of non-deductible costs, expenses, and losses -500,062.16
Impact of using deductible losses on the deferred tax
-5,802,957.00
assets not recognized previously
Effect of deductible temporary differences or deductible
losses from deferred tax assets unrecognized in the 316,808,980.84
current period
Changes in the balance of deferred tax assets/liabilities in
previous period due to adjustment of tax rate
Others -261,031.03
Income tax expense -8,544,396.99
For details, please refer to Note "VIII. 45 Other comprehensive income".
（1） Cash related to operating activities
Amount in the previous
Item Amount in the current period
period
Income from government grants 23,541,247.31 48,738,644.95
Front money and guarantee deposit 61,509,791.92 41,698,070.33
Interest income from bank deposits 10,343,774.61 12,715,233.74
Amount in the previous
Item Amount in the current period
period
Trading funds 105,719,083.85 84,787,383.62
Compensation and penalty income 3,226,460.19 3,109,325.19
Others 24,963,143.93 24,471,226.45
Total 229,303,501.81 215,519,884.28
Amount in the previous
Item Amount in the current period
period
Cash payment fee 161,424,669.74 253,883,805.96
Deposit and margin 115,083,846.17 53,249,245.94
Payment made on behalf 90.00 28,616.88
Expense for bank handling charges 865,304.41 1,726,391.23
Others 21,855,655.84 42,373,701.96
Total 299,229,566.16 351,261,761.97
(2) Cash related to investing activities
Amount in the current
Item Amount in the previous period
period
Recovery of loan at call
Cash received from acquisition of
subsidiaries
Others 858,150.68
Total 858,150.68
Amount in the previous
Item Amount in the current period
period
Payment of loan at call
Cash paid for disposal of subsidiaries
Others 48,483.53 21,122,140.00
Total 48,483.53 21,122,140.00
(3) Cash related to financing activities
Amount in the previous
Item Amount in the current period
period
Recovery of margin deposit pledged 1,136,434,776.17 1,385,979,814.26
Receiving loan at call 700,000.00
Others 157,261.11
Total 1,136,592,037.28 1,386,679,814.26
Amount in the previous
Item Amount in the current period
period
Deposit as margin for pledge 577,001,715.84 1,220,117,802.84
Cash paid for leases 17,608,325.78 27,571,130.91
Retuning loan at call 2,199,917,902.74 20,800,521.46
Financing cost 194,323.50 18,690,332.38
Others 11,708,942.13 9,741,719.08
Total 2,806,431,209.99 1,296,921,506.67
Increase in the current period Decrease in the current period
Item Beginning balance Ending balance
Cash changes Non-cash changes Cash changes Non-cash changes
Non-current liabilities
maturing within one year
Short-term borrowings 4,575,915,552.66 1,835,707,833.34 42,011,962.11 3,981,171,059.23 2,472,464,288.88
Long-term borrowings 6,537,926,737.54 3,995,000,000.00 987,182,461.74 236,110,566.20 1,159,268,448.55 10,124,730,184.53
Bonds payable 1,596,674,876.37 46,349,146.76 18,215,000.16 836,087,928.67 788,721,094.30
Lease liabilities 96,858,968.75 3,925,129.03 2,020,290.08 23,141,468.63 75,622,339.07
Long-term payables 2,033,227.02 48,363.29 469,071.50 460,279.64 1,152,239.17
Total 16,460,249,977.55 5,830,707,833.34 3,099,204,767.60 6,957,078,814.37 2,876,190,293.69 15,556,893,470.43
（4） Notes to the presentation of cash flows on a net basis
No cash flows were presented on a net basis in the current period.
（5） Significant activities and financial effects that do not involve current cash receipts and payments but
affect the financial position of the enterprise or may affect the enterprise's cash flows in the future
Item Amount in the current period
Payment for materials made by endorsement of notes
receivable
Acquisition of long-term assets by endorsement of notes
receivable
Other payments made by endorsement of notes receivable 72,045,514.30
(1) Supplementary information to the statement of cash flows
Amount for the previous
Item Current amount
period
activities:
Net profit -263,881,802.89 -497,119,077.09
Add: Provision for asset impairment 34,741,399.30 85,403,855.86
Credit impairment loss -26,251,836.14 117,092,417.76
Depreciation of fixed assets, depletion of oil and gas assets,
depreciation of productive biological assets
Depreciation of right-of-use assets 23,199,763.27 24,890,541.80
Amortization of intangible assets 15,369,541.45 23,917,196.86
Amortization of long-term prepaid expense 66,163,656.40 70,142,033.93
Losses on disposal of fixed assets, intangible assets and other
long-lived assets (" " indicates income)
Losses on scrap of fixed assets (" " indicates income) 416,883.59 955,602.12
Losses on changes in fair value (" " indicates income) -62,041,331.96 -173,409,194.85
Finance costs (" " indicates income) 305,945,156.45 320,688,430.62
Investment loss (" " indicates income) -430,062,360.56 -540,347,018.43
Decrease in deferred tax assets ("-" for increase) -737,968.97 6,266,494.74
Increase in deferred income tax liabilities (" " indicates
-18,477,742.06 203,196,489.95
decrease)
Amount for the previous
Item Current amount
period
Decrease in inventories (" " indicates increase) 184,573,976.80 133,699,360.03
Decrease in accounts receivable generated from operating
activities (" " indicates increase)
Increase in accounts payable used in operating activities (" "
-655,132,076.42 -479,972,018.38
indicates decrease)
Others -14,248,948.14 -16,988,800.86
Net cash generated from/used in operating activities -536,154,671.39 -675,623,430.93
involving cash
Conversion of liabilities into capital
Convertible corporate bonds due within one year
Fixed assets acquired under finance leases
Ending balance of cash 1,875,290,029.52 2,502,399,179.47
Less: beginning balance of cash 5,020,469,510.26 2,783,177,476.45
Plus: ending balance of cash equivalents
Less: beginning balance of cash equivalents
Net increase in cash and cash equivalents -3,145,179,480.74 -280,778,296.98
(2) Supplier finance 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 '0,000)
Line items Ending balance Beginning balance
Accounts payable 75.35
Of which: Amount received by suppliers 75.35
Total 75.35
③ Maturity date ranges of payments
Ending Beginning
Liabilities under the arrangements
issuance issuance
Comparable accounts payable not under the
- -
arrangements
④ Changes in the current period not involving cash receipts and payments
The changes in the Group's aforementioned financial liabilities were not affected by business combinations or exchange
rate fluctuations.
(3) Net cash paid for acquisition of subsidiaries in the current period
No net cash was paid for the acquisition of subsidiaries in the current period.
(4) Net cash received for disposal of subsidiaries in the current period
There was no net cash received from disposal of subsidiaries in the current period.
(5) Breakdowns of cash and cash equivalents
Item Ending balance Beginning balance
Cash 1,875,290,029.52 5,020,469,510.26
Including: Cash on hand
Bank deposits available for payment at any time 1,870,288,437.69 5,015,971,489.92
Other monetary funds available for payment at any time 5,001,591.83 4,498,020.34
Balance of cash and cash equivalents at the end of the
year
(6) Limited use but still presented as cash and cash equivalents
Reasons for classifying the
Amount for the previous
Item Current amount funds as cash and cash
period
equivalents
The proceeds can be used at any
time to make payments, and such
Project loan proceeds 15,329,963.22 21,235,919.44
payments can only be made for
projects
The proceeds can be used at any
Project pre-sale funds 12,412,922.19 14,945,902.26 time to make payments, and such
payments can only be made for
Reasons for classifying the
Amount for the previous
Item Current amount funds as cash and cash
period
equivalents
projects
Total 27,742,885.41 36,181,821.70 —
(7) Monetary funds not classified as cash and cash equivalents
Reasons for not classifying the
Amount for the previous
Item Current amount funds as cash and cash
period
equivalents
It is pledged for borrowing or deposit
Cash deposit 202,348,614.05 699,851,445.35
for issuance of banker acceptance
The management intends to hold the
Time deposits 440,277,833.44 540,851,836.28
deposits to maturity
Frozen funds 170,026,597.32 82,682,461.71 Not readily available for payment
Total 812,653,044.81 1,323,385,743.34 —
No "other" amount in the closing amount of last period was adjusted in the current period.
（1） Foreign currency monetary items
Ending balance of Ending balance
Item Exchange rate
foreign currency denominated in RMB
Monetary assets
Including: USD 28,421,610.63 6.81090 193,576,747.84
EUR 73,595.43 7.76956 571,804.11
EGP 7,670,952.05 0.13843 1,061,889.89
GBP 1.32 9.01793 11.90
HKD 1,239,667.14 0.86855 1,076,712.89
CAD 6.96 4.79007 33.34
PLN 1,966,405.02 1.81154 3,562,221.35
Ending balance of Ending balance
Item Exchange rate
foreign currency denominated in RMB
Accounts receivable
Including: USD 85,075,181.64 6.81090 579,438,554.63
EUR 176,089.46 7.76956 1,368,137.62
HKD 954,432.71 0.86855 828,972.53
AUD 49,764.00 4.68124 232,957.23
Prepayment
Including: USD 57,671.50 6.81090 392,794.82
Other receivables
Including: USD 109,382,627.43 6.81090 744,994,137.16
EGP 108,000.00 0.13843 14,950.44
HKD 12,794,169.39 0.86855 11,112,375.82
JPY 21,400,000.00 0.04201 899,054.66
Accounts payable
Including: USD 2,928,087.97 6.81090 19,942,914.35
EUR 10,931.74 7.76956 84,934.81
EGP 30,620,358.59 0.13843 4,238,776.24
HKD 14,248.91 0.86855 12,375.89
Other payables
Including: USD 3,047,271.49 6.81090 20,754,661.39
EUR 94,328.95 7.76956 732,894.44
EGP 498,014.80 0.13843 68,940.19
HKD 14,171,929.24 0.86855 12,309,029.14
（2） Overseas entities
The Group's significant overseas entities include Hongdin Trading, Hong Kong Konka, Chain Kingdom Memory
Technologies, Hongjet, Jiali International, and Kowin Memory (Hong Kong). The main overseas operating place is Hong
Kong. The said companies' recording currency is HKD since the main currency in circulation in Hong Kong is HKD.
IX. R&D expenditures
Amount in the current Amount in the previous
Item
period period
Labor costs 90,024,002.59 96,735,140.30
Depreciation and amortization expenses 55,439,467.41 59,670,273.81
New product trial production expense 1,159,885.83 900,602.57
Material expense 3,482,379.47 9,793,459.90
Commission service fee 28,728.16 134,759.46
Testing expense 1,406,384.01 1,604,963.68
Information use fee 256,060.64 308,099.64
Others 16,568,259.49 18,803,996.32
Total 168,365,167.60 187,951,295.68
Including: Expensed R&D expenditure 168,365,167.60 187,951,295.68
Capitalized R&D expenditure
X. Changes in consolidation scope
The Group had no business combinations not under common control in the current period.
The Group had no business combinations under common control in the current period.
No subsidiaries were disposed of in the current period.
No subsidiaries were newly established or deregistered in the current period.
XI. Equity in other entities
(1) Compositions of the Group
Shareholding
Main place of Acquisition
No. Name of subsidiary Place of registration Business nature percentage (%)
business method
Direct Indirect
Enterprise management
Shenzhen, Shenzhen, consulting, incubation Establishment or
Guangdong Guangdong management, housing investment
leasing, etc.
Other professional consulting Establishment or
and investigation investment
Konka Enterprise Enterprise management Establishment or
Service consulting investment
Establishment or
investment
Establishment or
investment
Establishment or
investment
Konka Electronic Shenzhen, Shenzhen, Other science and technology Establishment or
Materials Guangdong Guangdong promotion services investment
Shenzhen, Shenzhen, Establishment or
Guangdong Guangdong investment
Establishment or
investment
Shareholding
Main place of Acquisition
No. Name of subsidiary Place of registration Business nature percentage (%)
business method
Direct Indirect
Dongguan, Dongguan, Establishment or
Guangdong Guangdong investment
Establishment or
investment
Establishment or
investment
Telecommunications Shenzhen, Shenzhen, Establishment or
Technology Guangdong Guangdong investment
Establishment or
investment
Technology Industry Shenzhen, Shenzhen, Establishment or
Development Guangdong Guangdong 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
Frestec Electrical Business
Appliances combinations not
Shareholding
Main place of Acquisition
No. Name of subsidiary Place of registration Business nature percentage (%)
business method
Direct Indirect
under common
control
Business
Frestec Household combinations not
Appliances under common
control
Changzhou, Establishment or
Jiangsu investment
Establishment or
investment
Shenzhen, Shenzhen, Establishment or
Guangdong Guangdong investment
Establishment or
investment
Beijing Konka Establishment or
Electronics investment
Tianjin Pilot Free Tianjin Pilot Free Establishment or
Trade Zone Trade Zone investment
Shenzhen, Shenzhen, Establishment or
Guangdong Guangdong investment
Establishment or
investment
Establishment or
investment
Establishment or
investment
Chain Kingdom Establishment or
Memory Technologies investment
Shareholding
Main place of Acquisition
No. Name of subsidiary Place of registration Business nature percentage (%)
business method
Direct Indirect
Chain Kingdom
Establishment or
investment
(Shaoxing)
Establishment or
investment
Establishment or
investment
Establishment or
investment
Establishment or
investment
Shenzhen, Shenzhen, Establishment or
Guangdong Guangdong investment
Yibin Konka Industrial park development Establishment or
Technology Park and operation management investment
Shenzhen, Shenzhen, Establishment or
Guangdong Guangdong investment
Shenzhen, Shenzhen, Establishment or
Guangdong Guangdong investment
Shenzhen, Shenzhen, Establishment or
Guangdong Guangdong investment
Shenzhen, Shenzhen, Software and information Establishment or
Guangdong Guangdong technology services investment
Shenzhen, Shenzhen, Establishment or
Guangdong Guangdong investment
Shenzhen, Shenzhen, Software and information Establishment or
Guangdong Guangdong technology services investment
Shareholding
Main place of Acquisition
No. Name of subsidiary Place of registration Business nature percentage (%)
business method
Direct Indirect
Shenzhen, Shenzhen, Establishment or
Guangdong Guangdong investment
Establishment or
investment
Chengdu Konka Establishment or
Electronics investment
Business
Zhongshan, Zhongshan, combinations not
Guangdong Guangdong under common
control
Establishment or
investment
Liaoyang Kangshun Comprehensive utilization of Establishment or
Renewable renewable resources investment
Establishment or
investment
Establishment or
investment
Establishment or
investment
Business
combinations not
under common
control
Business
combinations not
under common
control
Shareholding
Main place of Acquisition
No. Name of subsidiary Place of registration Business nature percentage (%)
business method
Direct Indirect
Shenzhen, Shenzhen, Establishment or
Guangdong Guangdong investment
Shenzhen Konka Shenzhen, Shenzhen, Establishment or
Semiconductor Guangdong Guangdong investment
Software and information Establishment or
technology services investment
Establishment or
investment
Suining Konka Industrial park development Establishment or
Industrial Park and operation management investment
Suining Electronic
Establishment or
investment
Innovation
Shenzhen Chuangzhi Shenzhen, Shenzhen, Establishment or
Electrical Appliances Guangdong Guangdong investment
Chongqing
Research & experiment Establishment or
development investment
Technology
Computer,
Kowin Memory Shenzhen, Shenzhen, telecommunications and other Establishment or
(Shenzhen) Guangdong Guangdong electronic equipment investment
manufacturing
Computer,
Konka ChipCloud telecommunications and other Establishment or
Semiconductor electronic equipment investment
manufacturing
Technology promotion and Establishment or
application services investment
Shareholding
Main place of Acquisition
No. Name of subsidiary Place of registration Business nature percentage (%)
business method
Direct Indirect
Ningbo Kanghanrui Electrical machinery and Establishment or
Electric Appliances equipment manufacturing investment
Establishment or
investment
Ecological protection and
Establishment or
investment
services
Hainan Konka Establishment or
Technology investment
Business
Jiangxi
combinations not
under common
Substrate
control
Computer,
telecommunications and other Establishment or
electronic equipment investment
manufacturing
Establishment or
investment
Konka Flexible Establishment or
Electronics investment
Konka Hongye Establishment or
Electronics investment
Wholesale of computers,
Kowin Memory (Hong Establishment or
Kong) investment
equipment
Konka Cross-border Establishment or
(Hebei) investment
Shareholding
Main place of Acquisition
No. Name of subsidiary Place of registration Business nature percentage (%)
business method
Direct Indirect
Establishment or
investment
Ecological protection and
Establishment or
investment
services
Manufacture of household
Shanxi Konka Establishment or
Intelligent investment
electrical appliances
Science and technology
Chongqing Xinyuan Establishment or
Semiconductor investment
services
Software and information Establishment or
technology services investment
Shenzhen, Shenzhen, Establishment or
Guangdong Guangdong investment
Qiannan Buyi and Qiannan Buyi and
Guizhou Konka New Establishment or
Material Technology investment
Prefecture, Guizhou Prefecture, Guizhou
Computer,
Shanxi Smart Home telecommunications and other Establishment or
Appliance electronic equipment investment
manufacturing
Qiannan Buyi and Qiannan Buyi and
Guizhou Kanggui Establishment or
Material Technology investment
Prefecture, Guizhou Prefecture, Guizhou
Establishment or
investment
Establishment or
investment
Shareholding
Main place of Acquisition
No. Name of subsidiary Place of registration Business nature percentage (%)
business method
Direct Indirect
Jiangxi Konka Establishment or
High-tech Park investment
Shangrao Konka
Research & experiment Establishment or
development investment
Innovation
Zhejiang Konka Research & experiment Establishment or
Electronic development investment
Zhejiang Konka Establishment or
Technology Industry investment
Establishment or
investment
Computer,
telecommunications and other Establishment or
electronic equipment investment
manufacturing
Xi'an Kanghong Establishment or
Technology Industry investment
Xi'an Konka Intelligent Establishment or
Technology investment
Songyang Industry Software and information Establishment or
Operation technology services investment
Computer,
Shenzhen, Shenzhen, telecommunications and other Establishment or
Guangdong Guangdong electronic equipment investment
manufacturing
Songyang Konka Establishment or
Intelligent investment
Shareholding
Main place of Acquisition
No. Name of subsidiary Place of registration Business nature percentage (%)
business method
Direct Indirect
equipment manufacturing investment
Shenzhen, Shenzhen, Software and information Establishment or
Guangdong Guangdong technology services investment
(2) Significant non-wholly-owned subsidiaries
Dividends declared to
Profit or loss attributable to
Shareholding of minority be distributed to Ending balance of minority
Company name minority shareholders in this
shareholders minority shareholders shareholders' equities
period
in this period
Shanxi Konka Intelligent 49.00% -6,308,400.14 156,230,848.79
(3) Key financial information of significant non-wholly-owned subsidiaries
Ending balance
Name of subsidiary Non-current Non-current
Current assets Total assets Current liabilities Total liabilities
assets liabilities
Shanxi Konka Intelligent 346,995,825.88 547,052,389.17 894,048,215.05 280,399,745.69 294,810,002.44 575,209,748.13
Beginning balance
Name of subsidiary Non-current Non-current
Current assets Total assets Current liabilities Total liabilities
assets liabilities
Shanxi Konka Intelligent 726,253,447.73 547,389,728.20 1,273,643,175.93 643,226,943.87 298,974,204.21 942,201,148.08
Amount in the current period
Name of subsidiary Total comprehensive Cash flows from operating
operating revenue Net profit
income activities
Shanxi Konka Intelligent 134,412,722.53 -12,874,286.01 -12,874,286.01 -1,059,106.12
Amount in the previous period
Name of subsidiary Total comprehensive Cash flows from operating
operating revenue Net profit
income activities
Shanxi Konka Intelligent 106,057,798.34 -14,556,410.13 -14,556,410.13 -4,779,480.52
(1) Important associates
Shareholding percentage Accounting processing
Main place of Place of (%) method for investment in
Name of associates Business nature
business registration joint ventures or associated
Direct Indirect
enterprises
Oriental Jiakang No. 1 (Zhuhai) Private Equity Investment
Zhuhai Zhuhai 49.95 Equity method
Investment Fund (Limited Partnership) management
Professional
Shenzhen Jielunte Technology Co., Ltd. Shenzhen Shenzhen machinery 42.79 Equity method
manufacturing
(2) Key financial information of significant associates
Ending balance/amount incurred in the current period Beginning balance/amount incurred in previous period
Oriental Jiakang No. 1
Oriental Jiakang No. 1 (Zhuhai)
Item Shenzhen Jielunte (Zhuhai) Private Equity Shenzhen Jielunte
Private Equity Investment Fund
Technology Co., Ltd. Investment Fund (Limited Technology Co., Ltd.
(Limited Partnership)
Partnership)
Ending balance/amount incurred in the current period Beginning balance/amount incurred in previous period
Oriental Jiakang No. 1
Oriental Jiakang No. 1 (Zhuhai)
Item Shenzhen Jielunte (Zhuhai) Private Equity Shenzhen Jielunte
Private Equity Investment Fund
Technology Co., Ltd. Investment Fund (Limited Technology Co., Ltd.
(Limited Partnership)
Partnership)
Current assets 361,962,760.84 250,977,751.37 350,138,667.41 219,896,979.76
Including: cash and cash equivalents 30,599,550.78 15,919,211.70 18,775,457.35 16,787,261.84
Non-current assets 368,635,137.77 381,156,956.39
Total assets 361,962,760.84 619,612,889.14 350,138,667.41 601,053,936.15
Current liabilities 32,171,808.25 309,881,281.60 20,026,785.45 280,946,973.50
Non-current liabilities 140,110,039.83 140,456,865.19
Total liabilities 32,171,808.25 449,991,321.43 20,026,785.45 421,403,838.69
Total net assets 329,790,952.59 169,621,567.71 330,111,881.96 179,650,097.46
Including: minority equity 3,687,277.66 4,215,206.30
Equities attributable to shareholders of the parent
company
Share of net assets calculated based on the
shareholding
Adjustments
Ending balance/amount incurred in the current period Beginning balance/amount incurred in previous period
Oriental Jiakang No. 1
Oriental Jiakang No. 1 (Zhuhai)
Item Shenzhen Jielunte (Zhuhai) Private Equity Shenzhen Jielunte
Private Equity Investment Fund
Technology Co., Ltd. Investment Fund (Limited Technology Co., Ltd.
(Limited Partnership)
Partnership)
--Goodwill
--Unrealized profit of internal transactions
--Others
Book value of equity investments in associated
enterprises
Fair value of equity investments in associates with
publicly quoted prices
operating revenue 167,820,427.24 173,767,758.81
Finance costs -14,270.63 5,439,755.12 -41,957.20 4,931,999.28
Income tax expense 2,604,773.10 4,045,925.04
Net profit -320,929.37 -10,314,401.65 -233,242.80 -11,900,755.32
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income -320,929.37 -10,314,401.65 -233,242.80 -11,900,755.32
Ending balance/amount incurred in the current period Beginning balance/amount incurred in previous period
Oriental Jiakang No. 1
Oriental Jiakang No. 1 (Zhuhai)
Item Shenzhen Jielunte (Zhuhai) Private Equity Shenzhen Jielunte
Private Equity Investment Fund
Technology Co., Ltd. Investment Fund (Limited Technology Co., Ltd.
(Limited Partnership)
Partnership)
Dividend received from joint venture in the current
year
(3) Summarized financial information of unimportant associates
Ending balance/amount Beginning
Item incurred in the current balance/amount incurred
period in previous period
Associates
Total book value of investments 2,183,737,703.33 1,780,982,080.65
The total of following items according to
the shareholding proportions
--Net profit 433,146,694.53 -33,813,434.11
--Other comprehensive income 35,170.29
--Total comprehensive income 433,146,694.53 -33,778,263.82
XII. Government grants
Amount
Amount
Subsidy recognized as
transferred to
Account title Beginning balance increase in the non-operating
other income for
current period revenue for the
the current period
current period
Deferred income 408,175,795.51 11,830,000.00 14,248,948.14
(Continued)
Other changes in
Account title Ending balance Related to assets/ income
the current period
Deferred income 405,756,847.37 Related to assets/ income
Account title Amount in the current period Amount in the previous period
Other income 19,188,325.77 40,970,737.77
Finance costs
XIII. Risks associated with financial instruments
The Group's main financial instruments include borrowings, accounts receivable, accounts payable,
trading financial assets, and equity instrument investments. Please refer to Note VIII for detailed
descriptions of various financial instruments. The risks related to these financial instruments and the risk
management policies adopted by the Group to mitigate these risks are described below. The management
of the Group manages and monitors these risk exposures to ensure that these risks are controlled within a
limited scope.
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
Company's risk management is determining and analyzing the various risks faced by the Company,
setting up the bottom line of risk and conducting appropriate risk management, and timely supervising
various risks in a reliable way and controlling the risk within the range of limit.
(1) Market risks
Foreign exchange risk refers to the risks that may lead to losses due to fluctuation in exchange rate. The
foreign exchange risk borne by the Group is related to USD. Except the procurement and sales in USD of
the Company's subsidiaries Hong Kong Konka, Hongdin Trading, Chain Kingdom Memory Technologies,
Hongjet and Jiali, the Group's other primary business activities are settled in RMB. The currency risk
arising from the assets and liabilities of such balance in USD may affect the Group's operating results. As
of June 30, 2026, 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 Ending amount Beginning amount
Monetary assets 28,421,615.79 27,663,141.48
Accounts receivable 85,075,181.64 87,163,632.40
Other receivables 109,382,627.43 110,851,224.81
Other payables 2,928,087.97 5,589,778.90
Accounts payable 3,047,271.49 3,108,148.44
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 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 have
fixed interest rates. The risk of changes in cash flows of financial instruments due to interest rate
fluctuations 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 June 30, 2026, the balance of such short-term borrowings was RMB 2,472,464,288.88.
(2) Credit risk
As of June 30, 2026, 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 group to determine the credit limit, conduct credit
approval, and implement other monitoring procedures to ensure that necessary measures are taken to
recover overdue claims. In addition, the Group reviews the recovery of each single receivable on each
balance sheet date to ensure that sufficient provision for bad debts is made for the unrecoverable amount.
Therefore, the Group's management believes that the Group's credit risk has been greatly reduced.
The Group's working capital is deposited in banks with a high credit rating, so the credit risk of working
capital is low.
The Group has adopted necessary policies to ensure that all customers have good credit records. Except
for the top five customers in terms of the amount of accounts receivable, the Group has no other major
credit concentration risks. For the financial assets of the Group that have been individually impaired,
please refer to Note VIII. 4. Accounts receivable and 7. Other receivables.
(3) Liquidity risk
Liquidity risk refers to the risk that the Group is unable to fulfill its financial obligations on the due date. The
Group manages liquidity risk in the method of ensuring that there is sufficient liquidity to fulfil debt
obligations without causing unacceptable loss or damage to the Group's reputation. In order to mitigate
the liquidity risk, the Group's management has carried out a detailed inspection on the liquidity of the
Group, including the maturity of accounts payable and other payables, bank credit line and bond financing.
The conclusion is that the Group has sufficient funds to meet the needs of the Group's short-term debts
and capital expenditure.
The analysis of the financial assets and financial liabilities held by the Group based on the
maturity period of the undiscounted remaining contractual obligations is as follows:
Amount as of June 30, 2026:
Item Within one year One to two years Two to five years Over 5 years Total
Financial assets
Monetary assets 2,687,943,074.33 2,687,943,074.33
Trading financial assets 138,775,929.60 138,775,929.60
Notes receivable 156,921,039.72 156,921,039.72
Accounts receivable 1,036,383,168.85 1,036,383,168.85
Other receivables 947,515,719.09 947,515,719.09
Other current assets 719,531,026.32 719,531,026.32
Financial liabilities
Short-term borrowings 2,472,464,288.88 2,472,464,288.88
Notes payable 739,788,094.34 739,788,094.34
Accounts payable 1,800,540,624.79 1,800,540,624.79
Other payables 4,345,738,069.13 4,345,738,069.13
Employee benefits payable 237,633,221.18 237,633,221.18
Non-current liabilities maturing
within one year
Long-term borrowings 560,100,000.00 8,913,034,267.20 651,595,917.33 10,124,730,184.53
Bonds payable 788,721,094.30 788,721,094.30
Long-term payables 1,152,239.17 1,152,239.17
The Group adopts sensitivity analysis technology to analyze the possible impact of reasonable and possible changes of
risk variables on current profits/losses or shareholders' equity. As any risk variable rarely changes in isolation, and the
correlation between variables will have a significant effect on the final impact amount of the change of a risk variable, the
following content is based on the assumption that the change of each variable is independent.
（1） Sensitivity analysis of foreign exchange risk
Assumption for the sensitivity of foreign exchange risk: All net investment hedging and cash flow hedging of overseas
operations are highly effective.
On the basis of the above assumption, under the condition that other variables remain unchanged, the impact of
reasonable changes in the exchange rate on current profits/losses and equity after tax is as follows:
First half of 2026 First half of 2025
Exchange rate
Item Impact on Impact on
fluctuations Impact on net profit Impact on net profit
shareholders' equity shareholders' equity
Appreciation of
USD 1% against 12,260,284.78 8,122,619.77 11,847,729.74 7,429,981.30
RMB
Depreciation
USD of 1% against -12,260,284.78 -8,122,619.77 -11,847,729.74 -7,429,981.30
RMB
（2） Sensitivity analysis of interest rate risk
Sensitivity analysis of interest rate risk is based on the following assumptions:
Changes in market interest rates affect the interest income or expense of financial instruments with variable interest rates;
For financial instruments with fixed interest rates measured at fair value, market interest rate changes affect only their
interest income or expense;
Changes in the fair values of derivative financial instruments and other financial assets and liabilities are calculated at the
market interest rate on the balance sheet date by discounted cash flow.
On the basis of the above assumptions and under the condition that other variables remain unchanged, the impact of
reasonable changes in the interest rate on current profits/losses and equity after tax is as follows:
First half of 2026 First half of 2025
Interest rate
Item Impact on Impact on
fluctuations Impact on net profit Impact on net profit
shareholders' equity shareholders' equity
First half of 2026 First half of 2025
Interest rate
Item Impact on Impact on
fluctuations Impact on net profit Impact on net profit
shareholders' equity shareholders' equity
Borrowings
at floating Up 0.5% -9,458,764.78 -8,889,845.61 -23,723,112.64 -23,151,242.01
interest rates
Borrowings
at floating Down 0.5% 9,458,764.78 8,889,845.61 23,723,112.64 23,151,242.01
interest rates
XIV. Disclosure of fair value
Fair value at period end
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 138,775,929.60 138,775,929.60
measured at fair value
through current profit or
loss
(II) Accounts receivable
financing
(III) Other debt investments -
(IV) Other equity instrument
investments
(V) Investment properties -
(VI) Other non-current
financial assets
Total assets continuously
measured at fair value
Total liabilities
Fair value at period end
Item Level-1 fair value Level-2 fair value Level-3 fair value
Total
measurement measurement measurement
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
concern
The Level-1 input is an unadjusted quoted price in an active market for the same assets and liabilities available on the
measurement date.
non-sustainable items measured on the basis of fair value of level 2
Level 2 input value is the directly or indirectly observable input value of the relevant assets or liabilities except for the level
qualitative and quantitative information of important parameters
The Level-3 inputs are the unobservable inputs of related assets and liabilities.
policies for determining the time of conversion
For the Group's items continuously measured at fair value, there was no conversion between levels in the current period.
For the items measured at fair value of the Group, there were no changes in valuation techniques in the current period.
XV. Related parties and related-party transactions
Shareholding Voting right
percentage of percentage of the
Name of the parent Place of Registered
Business nature the parent parent company
company registration capital
company in the in the Company
Company (%) (%)
Panshi Runchuang Consulting services
RMB 11.71
(Shenzhen) Information Shenzhen and enterprise 29.999997 29.999997
billion
Management Co., Ltd. management
The ultimate controller of the Company is State-owned Assets Supervisor Commission of the State Council.
Please refer to "Note XI.1. (1) Subsidiaries" for the information of subsidiaries.
For details of the Company's important associates, please refer to "Note XI.2.(1) Important associates."
Other associates involved in the related-party transactions with the Company in the current period, or leading to balance
due to the related-party transaction they had with the Company in previous periods:
Name of associates Relationship with the Company
Kangkong Venture Capital (Shenzhen) Co., Ltd. Associates
Nanjing Zhihuiguang Information Technology Research Institute Co.,
Associates
Ltd.
Feidi Technology (Shenzhen) Co., Ltd. Associates
Foshan Zhujiang Media Creative Park Cultural Development Co., Ltd. Associates
Kangkai Technology Service (Chengdu) Co., Ltd. Associates
Puchuang Jiakang Technology Co., Ltd. Associates
Shenzhen Jielunte Technology Co., Ltd. Associates
Orient Excellent (Zhuhai) Asset Management Co., Ltd. Associates
Tongxiang Wuzhen Kunyu Venture Capital Co., Ltd. Associates
Shenzhen RF-Llink Technology Co., Ltd. Associates
Anhui Kaikai Shijie E-commerce Co., Ltd. Associates
Shaanxi Silk Road Yunqi Intelligent Technology Co., Ltd. Associates
Shenzhen Kanghongxing Intelligent Technology Co., Ltd. Associates
Shenzhen Zhongkang Beidou Technology Co., Ltd. Associates
Name of associates Relationship with the Company
Shenzhen Yaode Technology Co., Ltd. Associates
Nantong Konka Technology Industrial Park Operation Management
Associates
Co., Ltd.
Chuzhou Kangxin Health Industry Development Co., Ltd. Associates
Dongguan Guankang Yuhong Investment Co., Ltd. Associates
Shenzhen Morsemi Semiconductor Technology Co., Ltd. Associates
Yantai Kangyun Industrial Development Co., Ltd. Associates
Shenzhen Kangjia Jiapin Intelligent Electrical Apparatus Technology
Associates
Co., Ltd.
Shenzhen KONKA E-display Co., Ltd. Associates
Chongqing Yuanlv Benpao Real Estate Co., Ltd. Associates
Shenzhen Kangpeng Digital Technology Co., Ltd. Associates
Yantai Kangtang Construction Development Co., Ltd. Associates
Dongguan Konka Smart Electronic Technology Co., Ltd. Associates
Beijing Konka Jingyuan Technology Co., Ltd. Associates
Shenzhen Kangxi Technology Innovation Development Co., Ltd. Associates
Shandong Kangfei Intelligent Electrical Appliances Co., Ltd. Associates
Guangdong Kangyuan Semiconductor Co., Ltd. Associates
Chongqing Kangjian Photoelectric Technology Co., Ltd. Associates
Anhui Kangta Supply Chain Management Co., Ltd. Associates
Wuhan Kangtang Information Technology Co., Ltd. Associates
Sichuan Chengrui Real Estate Co., Ltd. Associates
Hefei KONSEMI Storage Technology Co., Ltd. Associates
Sichuan Hongxinchen Real Estate Development Co., Ltd. Associates
Chongqing Lanlv Moma Real Estate Development Co., Ltd. Associates
Yantai Kangyue Investment Co., Ltd. Associates
Econ Technology Associates
Dongguan Kangjia New Materials Technology Co., Ltd. Associates
Zhejiang Kangying Semiconductor Technology Co., Ltd. Associates
Kangshengjia Smart Energy (Zhejiang) Co., Ltd. Associates
Konka Huanjia Environmental Technology Co., Ltd. Associates
Names of other related parties Relationship with the Company
Chuzhou Hanshang Electric Appliance Co., Ltd. Minority shareholder of subsidiary
Korea Electric Group Co., Ltd. Minority shareholder of subsidiary
Jiangsu Korea Electric Group Co., Ltd. Minority shareholder of subsidiary
HOHOELECTRICAL＆FURNITURECO 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 Management Co., Ltd. Minority shareholder of subsidiary
Wu Guoren Minority shareholder of subsidiary
Xiao Yongsong Minority shareholder of subsidiary
Guizhou Huajinrun Technology Co. Ltd. Minority shareholder of subsidiary
Shenzhen Henglongtong 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 shareholders
Companies controlled by the ultimate controller of
Jiangxi Meiji Enterprise Co., Ltd.
minority shareholders of subsidiaries
(1) Related party transactions on purchase and sales of goods, rendering and receipt of services
Content of related-party Amount in the current Amount in the
Related party
transactions period previous period
Chuzhou Hanshang Electric Appliance Co.,
Purchase of goods 16,912,021.34 42,258,702.76
Ltd.
Content of related-party Amount in the current Amount in the
Related party
transactions period previous period
OCT Enterprises Co., Ltd. and its subsidiaries Purchase of goods and
and associates services
Shenzhen Jielunte Technology Co., Ltd. and
Purchase of goods 10,469,586.42 6,745,228.28
its subsidiaries and associates
Korea Electric Group Co., Ltd. and its
Purchase of goods 7,319,212.86 3,137,843.02
subsidiaries
China Resources Company Limited and its Purchase of goods and
subsidiaries and associates services
Shenzhen KONKA E-display Co., Ltd. and its Purchase of goods and
subsidiaries services
Jiangsu Korea Electric Group Co., Ltd. Purchase of goods 1,712,721.54 5,551,975.72
Dongguan Konka Smart Electronic
Purchase of goods 141,860.89 415,774.72
Technology Co., Ltd.
Dongguan Kangjia New Materials Technology
Purchase of goods 789,129.04
Co., Ltd.
Purchase of goods and
Subtotal of other related parties 937,305.42 1,698,466.84
services
Total 55,907,340.08 79,835,749.17
(2) Sales of goods/ rendering of services
Content of related-party Amount in the current Amount in the
Related party
transactions period previous period
Sales of goods and
Chuzhou Hanshang Electric Appliance Co.,
provision of labour 241,953,717.85 188,343,769.31
Ltd.
service
Korea Electric Group Co., Ltd. and its Provision of labour
subsidiaries service
Sales of goods and
Zhejiang Kangying Semiconductor
provision of labour 23,017,497.22 9,699,069.13
Technology Co., Ltd. and its subsidiaries
service
Sales of goods and
OCT Enterprises Co., Ltd. and its subsidiaries
provision of labour 6,931,496.66 21,189,371.31
and associates
service
Sales of goods and
China Resources Company Limited and its
provision of labour 1,321,324.97
subsidiaries and associates
service
Content of related-party Amount in the current Amount in the
Related party
transactions period previous period
Sales of goods and
Shenzhen KONKA E-display Co., Ltd. and its
provision of labour -84,733.33 10,189,054.91
subsidiaries
service
Dongguan Konka Smart Electronic
Sales of goods 13,278.93 2,379,882.99
Technology Co., Ltd.
Hefei KONSEMI Storage Technology Co., Ltd. Sales of goods 59,339.72 59,736.00
Shenzhen Jielunte Technology Co., Ltd. and Provision of labour
its subsidiaries and associates service
Sales of goods and
Nantong Konka Technology Industrial Park
provision of labour 566,037.74
Operation Management Co., Ltd.
service
Sales of goods and
Subtotal of other related parties provision of labour 756,168.13 7,125,673.74
service
Total 305,840,254.08 277,863,402.18
(3) Related party leases
Recognized in the current Recognized in the
Leased assets
Lessee period previous period
Category
Lease income Lease income
Commercial
OCT Enterprises Co., Ltd. and its
residences and office 6,395,607.53 7,465,175.99
subsidiaries and associates
buildings
Commercial
Shenzhen KONKA E-display Co., Ltd.
residences and office 567,010.47 1,853,770.60
and its subsidiaries
buildings
Commercial
Other related parties residences and office 1,746,404.41 4,906,003.52
buildings
Total 8,709,022.41 14,224,950.11
Recognized in the Recognized in the previous
Leased assets
Lessor current period period
Category
Lease expense Lease expense
Commercial
Overseas Chinese Town Holdings Company
residences and 16,026,062.88 15,249,291.43
and its subsidiaries
office buildings
Dongguan Guankang Yuhong Investment Co.,
Industrial plant 15,210,273.00 3,182,580.32
Ltd.
Total 31,236,335.88 18,431,871.75
(4) Related party guarantees
Whether
Contracted Actual
the
guarantee guarantee Start date of Expiry date of
The secured party Currency guarantee
amount amount guarantee guarantee
is
(RMB'0,000) (RMB'0,000)
completed
Anhui Tongchuang 4,000.00 2,500.00 CNY 2025/4/21 2026/4/21 No
Konka ChipCloud
Semiconductor
Chongqing Konka 38,000.00 11,548.58 CNY 2022/12/13 2037/12/13 No
Dongguan Konka 80,000.00 29,723.74 CNY 2021/6/23 2031/5/7 No
Xi'an Kanghong Technology
Industry
Konka Hongye Electronics 19,010.00 13,834.72 CNY 2024/1/24 2038/11/7 No
Ningbo Kanghanrui Electric
Appliances
Ningbo Kanghanrui Electric
Appliances
Anhui Konka 10,215.95 4,321.27 CNY 2021/8/10 2031/7/15 No
Anhui Konka 7,000.00 500.00 CNY 2021/10/29 2026/10/26 No
Anhui Konka 7,000.00 500.00 CNY 2022/10/24 2026/10/26 No
Anhui Konka 5,000.00 3,513.06 CNY 2023/6/25 2028/6/24 No
Econ Technology 1,498.97 1,099.25 CNY 2023/5/22 2024/5/21 No
Econ Technology 4,388.00 577.81 CNY 2024/10/24 2025/8/6 No
Whether
Contracted Actual
the
guarantee guarantee Start date of Expiry date of
The secured party Currency guarantee
amount amount guarantee guarantee
is
(RMB'0,000) (RMB'0,000)
completed
Econ Technology 1,498.97 369.75 CNY 2025/1/14 2026/1/13 No
Econ Technology 1,249.15 1,249.15 CNY 2026/3/10 2027/3/9 No
Econ Technology 999.32 999.32 CNY 2026/3/10 2027/3/9 No
Econ Technology 1,249.15 1,249.15 CNY 2026/3/16 2027/3/15 No
Econ Technology 1,249.15 1,249.15 CNY 2026/4/27 2027/4/26 No
Econ Technology 749.49 749.49 CNY 2026/4/29 2027/4/28 No
Econ Technology 499.66 139.40 CNY 2026/4/7 2027/4/6 No
Econ Technology 2,498.29 2,498.29 CNY 2026/4/3 2027/4/2 No
Econ Technology 1,249.15 1,249.15 CNY 2026/4/8 2027/4/7 No
Econ Technology 1,249.15 1,249.15 CNY 2026/4/7 2027/4/6 No
Whether
Guarantee
the
amount Guarantee Guarantee
Guarantor Currency guarantee
(RMB Start date Due date
is
‘0,000)
completed
China Resources Inc. 40,000.00 CNY 2025/12/9 2027/3/18 No
China Resources Inc. 41,000.00 CNY 2025/12/9 2028/6/23 No
China Resources Inc. 79,000.00 CNY 2025/12/9 2028/7/4 No
Chuzhou State-owned Assets Management
Co., Ltd.
Chuzhou State-owned Assets Management
Co., Ltd.
Chuzhou State-owned Assets Management
Co., Ltd.
Chuzhou State-owned Assets Management
Co., Ltd.
Wu Guoren 875.00 USD 2019/12/31 2024/12/31 No
Wu Guoren 1,872.50 USD 2019/12/31 2024/12/31 No
Whether
Guarantee
the
amount Guarantee Guarantee
Guarantor Currency guarantee
(RMB Start date Due date
is
‘0,000)
completed
Xiao Yongsong 840.00 USD 2019/12/31 2024/12/31 No
Xiao Yongsong 1,797.60 USD 2019/12/31 2024/12/31 No
Shenzhen Unifortune Supply Chain
Management Co., Ltd.
Shenzhen Unifortune Supply Chain
Management Co., Ltd.
Guizhou Huajinrun Technology Co. Ltd. 381.15 USD 2022/1/1 2025/12/31 No
Guizhou Huajinrun Technology Co. Ltd. 157.50 USD 2022/1/1 2025/12/31 No
Shenzhen Henglongtong Technology Co., Ltd. 241.40 USD 2022/1/1 2025/12/31 No
Shenzhen Henglongtong Technology Co., Ltd. 99.75 USD 2022/1/1 2025/12/31 No
AUJET INDUSTRY LIMITED 3,155.11 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
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
Whether
Guarantee
the
amount Guarantee Guarantee
Guarantor Currency guarantee
(RMB Start date Due date
is
‘0,000)
completed
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 128.87 CNY 2024/11/1 2026/10/30 No
Jiangxi Konka 13,431.31 CNY 2023/6/15 2027/3/8 No
Jiangxi High-transparency Substrate 38,045.57 CNY 2023/6/15 2027/3/19 No
Jiangxi High-transparency Substrate 258.80 CNY 2024/4/28 2030/3/6 No
Xinfeng Microcrystal 34,475.18 CNY 2023/6/15 2025/12/31 No
Jiangxi Konka 56.53 CNY 2024/3/7 2027/3/6 No
Jiangxi High-transparency Substrate 234.44 CNY 2024/3/7 2027/3/6 No
Xinfeng Microcrystal 1,379.77 CNY 2024/3/4 2027/3/3 No
Hu Zehong 2025/6/19 2029/6/18 No
Liang Ruiling, Dai Yaojin 2025/6/19 2026/12/31 No
Xingda Hongye 20,949.46 CNY 2025/6/19 2029/6/18 No
Suiyong Rongxin Asset Management Co., Ltd. 2,450.00 CNY 2018/1/1 2025/6/30 No
Suiyong Rongxin Asset Management Co., Ltd. 2,842.00 CNY 2018/1/1 2025/12/31 No
Shenzhen Henglongtong Electronic
Technology Co., Ltd., Guizhou Huajinrun
Technology Group Co., Ltd., Huaying
Gaokede Electronic Technology Co., Ltd. and 735.00 CNY
Huaying Gaokelong Electronic Technology
Co.,Ltd.
Shenzhen Baili Yongxing Technology Co., Ltd. 2018/1/1 2023/12/31 No
Whether
Guarantee
the
amount Guarantee Guarantee
Guarantor Currency guarantee
(RMB Start date Due date
is
‘0,000)
completed
Shenzhen Henglongtong Electronic
Technology Co., Ltd., Guizhou Huajinrun
Technology Group Co., Ltd., Huaying
Gaokede Electronic Technology Co., Ltd. and 488.37 CNY
Huaying Gaokelong Electronic Technology
Co.,Ltd.
Shenzhen Baili Yongxing Technology Co., Ltd. 2018/1/1 2023/12/31 No
Shenzhen Henglongtong Electronic
Technology Co., Ltd., Guizhou Huajinrun
Technology Group Co., Ltd., Huaying
Gaokede Electronic Technology Co., Ltd. and 552.72 CNY
Huaying Gaokelong Electronic Technology
Co.,Ltd.
Shenzhen Baili Yongxing Technology Co., Ltd. 2018/1/1 2023/12/31 No
Chuzhou Hanshang Electric Appliance Co.,
Ltd.
Konka Venture 1,322.54 CNY 2021/12/15 2022/11/5 No
(5) Loans from/to related parties
Amount
Related party Currency Start date Due date
(RMB'0,000)
Borrowed from
Chuzhou Hanshang Electric Appliance
Co., Ltd.
Chuzhou Hanshang Electric Appliance
Co., Ltd.
Chuzhou Hanshang Electric Appliance
Co., Ltd.
Kangkong Venture Capital (Shenzhen)
Co., Ltd.
Beijing Xuri Shengxing Technology Co.,
Ltd.
Total 16,766.17
Amount
Related party Currency Start date Due date
(RMB'0,000)
Lent to:
Dongguan Guankang Yuhong
Investment Co., Ltd.
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.
Yantai Kangyun Industrial Development
Co., Ltd.
Yantai Kangyun Industrial Development
Co., Ltd.
Yantai Kangyun Industrial Development 323.00 CNY 2022/8/25 2026/3/31
Amount
Related party Currency Start date Due date
(RMB'0,000)
Co., Ltd.
Yantai Kangyun Industrial Development
Co., Ltd.
Yantai Kangyun Industrial Development
Co., Ltd.
Yantai Kangyun Industrial Development
Co., Ltd.
Yantai Kangyun Industrial Development
Co., Ltd.
Yantai Kangyun Industrial Development
Co., Ltd.
Chongqing Lanlv Moma Real Estate
Development Co., Ltd.
Sichuan Hongxinchen Real Estate
Development Co., Ltd.
Econ Technology 18,315.11 CNY 2023/12/20 2026/12/20
Econ Technology 4,996.58 CNY 2023/12/21 2026/12/20
Chongqing Liangshan Industrial
Investment Co., Ltd.
Chongqing Liangshan Industrial
Investment Co., Ltd.
Total 181,349.18
(6) Remuneration of key management personnel
Amount in the current Amount in the previous
Project
period (RMB'0,000) period (RMB'0,000)
Total remuneration
(1) Receivables
Ending balance Beginning balance
Related party Provision for bad Provision for bad
Book balance Book balance
debts debts
Ending balance Beginning balance
Related party Provision for bad Provision for bad
Book balance Book balance
debts debts
Accounts receivable:
Shenzhen Yaode
Technology Co., Ltd. and its 139,976,261.62 139,976,261.62 144,454,581.31 144,454,581.31
subsidiaries
HOHO ELECTRICAL &
FURNITURE CO., LIMITED
Chuzhou Hanshang Electric
Appliance Co., Ltd.
OCT Enterprises Co., Ltd.
and its subsidiaries and 62,063,194.43 46,689,703.92 65,818,264.04 46,400,209.97
associates
Shenzhen Kanghongxing
Intelligent Technology Co., 37,670,906.98 37,670,906.98 38,319,878.77 38,319,878.77
Ltd.
Korea Electric Group Co.,
Ltd. and its subsidiaries and 13,323,766.62 570,048.63 27,943,560.39 570,048.63
associates
Anhui Kaikai Shijie
E-commerce Co., Ltd. and 26,435,355.98 10,257,193.02 26,436,604.92 6,116,465.89
its subsidiaries
Shandong Kangfei
Intelligent Electrical 4,466,641.58 4,313,758.17 4,466,641.58 4,130,097.83
Appliances Co., Ltd.
Shenzhen KONKA
E-display Co., Ltd. and its 870,103.34 334,771.57 875,788.71 388,276.97
subsidiaries
Shenzhen Jielunte
Technology Co., Ltd. and its 283,744.70 27,278.93 269,304.95 5,493.82
subsidiaries and associates
Subtotal of other related
parties
Total 496,227,701.60 340,515,622.18 532,386,047.95 352,066,838.43
Financing accounts
receivable/Notes
receivable:
Ending balance Beginning balance
Related party Provision for bad Provision for bad
Book balance Book balance
debts debts
Korea Electric Group Co.,
Ltd. and its subsidiaries
Chuzhou Hanshang Electric
Appliance Co., Ltd.
Total 44,568,377.31 3,209,127.25
Other receivables:
Konka Huanjia
Environmental Technology 1,744,736,434.49 1,744,736,434.49 1,744,736,434.49 1,744,736,434.49
Co., Ltd.
Chuzhou Kangxin Health
Industry Development Co., 460,482,883.84 341,564,138.03 460,482,883.84 341,564,138.02
Ltd.
Yantai Kangyun Industry
Development Co., Ltd. and 293,164,911.17 208,004,608.17 293,164,911.17 200,813,312.70
its subsidiaries
Sichuan Hongxinchen Real
Estate Development Co., 260,445,465.59 260,445,465.59 260,445,465.59 260,445,465.59
Ltd.
Dongguan Guankang
Yuhong Investment Co., 254,964,600.32 33,890,711.79 254,964,600.32 33,890,711.79
Ltd.
Chongqing Lanlv Moma
Real Estate Development 236,698,102.31 236,698,102.31 236,698,102.31 236,698,102.31
Co., Ltd.
Sichuan Chengrui Real
Estate Co., Ltd.
Yantai Kangyue Investment
Co., Ltd.
Chongqing Liangshan
Industrial Investment Co., 102,863,972.62 3,061,864.38 102,616,027.38 3,026,160.28
Ltd.
Dai Rongxing 89,251,531.41 89,251,531.41 89,251,531.41 89,251,531.41
Jiangxi Meiji Enterprise Co.,
Ltd.
Shenzhen Kanghongxing 39,130,497.17 39,130,497.17 39,130,497.17 39,130,497.17
Ending balance Beginning balance
Related party Provision for bad Provision for bad
Book balance Book balance
debts debts
Intelligent Technology Co.,
Ltd.
OCT Enterprises Co., Ltd.
and its subsidiaries and 28,864,936.57 20,087,770.94 28,342,867.96 22,862,402.59
associates
HOHO ELECTRICAL &
FURNITURE CO., LIMITED
Zhu Xinming 1,844,316.15 418,475.33 1,844,316.15 418,475.33
Hu Zehong 126,886.80 47,343.65 333,084.83 165,196.50
Subtotal of other related
parties
Total 3,964,536,080.13 3,381,079,956.96 3,963,977,137.14 3,376,726,567.84
Prepayments:
Puchuang Jiakang
Technology Co., Ltd.
China Resources Company
Limited and its subsidiaries 129,486.15 212,448.03
and associates
Kangshengjia Smart Energy
(Zhejiang) Co., Ltd.
OCT Enterprises Co., Ltd.
and its subsidiaries and 21,424.49
associates
Subtotal of other related
parties
Total 923,574.72 68,029,428.33
Other current assets:
Econ Technology Co., Ltd.
and its subsidiaries
Total 242,633,579.39 235,601,218.08
Contract assets:
OCT Enterprises Co., Ltd.
and its subsidiaries and
Ending balance Beginning balance
Related party Provision for bad Provision for bad
Book balance Book balance
debts debts
associates
Total 963,764.77 147,478.28 963,764.77 51,725.07
(2) Payables
Beginning book
Related party Ending book balance
balance
Accounts payable:
OCT Enterprises Co., Ltd. and its subsidiaries and associates 48,919,313.00 43,601,700.08
Kangshengjia Smart Energy (Zhejiang) Co., Ltd. 27,626,327.68 -
Dongguan Guankang Yuhong Investment Co., Ltd. 19,363,039.60 2,783,842.00
Chuzhou Hanshang Electric Appliance Co., Ltd. 6,332,697.74 4,253,835.32
Shenzhen Jielunte Technology Co., Ltd. and its subsidiaries and
associates
Anhui Kaikai Shijie E-commerce Co., Ltd. and its subsidiaries 4,326,148.17 4,326,148.17
HOHO ELECTRICAL & FURNITURE CO., LIMITED 4,238,776.24 4,510,072.62
Korea Electric Group Co., Ltd. and its subsidiaries and associates 3,780,197.02 4,309,351.22
Shenzhen KONKA E-display Co., Ltd. and its subsidiaries 1,372,382.07 1,245,087.25
Panxu Intelligence Co., Ltd. and its subsidiaries 53,334.46 97,686.01
Subtotal of other related parties 2,315,352.17 1,984,392.70
Total 124,039,914.33 80,409,256.84
Notes payable:
Shenzhen Jielunte Technology Co., Ltd. and its subsidiaries and
associates
Korea Electric Group Co., Ltd. and its subsidiaries and associates 3,518,939.25 4,689,383.18
Chuzhou Hanshang Electric Appliance Co., Ltd. 2,660,664.89
Dongguan Kangjia New Materials Technology Co., Ltd. 918,483.35
Shenzhen Kangjia Jiapin Intelligent Electrical Apparatus
Technology Co., Ltd.
Panxu Intelligence Co., Ltd. and its subsidiaries 352,731.61
Total 14,075,648.91 20,364,998.86
Beginning book
Related party Ending book balance
balance
Contract liabilities/other current liabilities/other non-current
liabilities:
OCT Enterprises Co., Ltd. and its subsidiaries and associates 48,314,206.58 53,849,339.85
Shenzhen Kangjia Jiapin Intelligent Electrical Apparatus
Technology Co., Ltd.
AUJET INDUSTRY LIMITED 4,234,856.38 3,983,759.72
Zhejiang Kangying Semiconductor Technology Co., Ltd. and its
subsidiaries
Chongqing Kangyiqing Technology Co., Ltd. 177,798.70 206,882.30
Shenzhen KONKA E-display Co., Ltd. and its subsidiaries 153,017.09
Subtotal of other related parties 307,169.69 135,288.55
Total 67,586,575.02 68,350,783.02
Other payables:
Chuzhou Hanshang Electric Appliance Co., Ltd. 208,483,191.90 208,390,348.31
OCT Enterprises Co., Ltd. and its subsidiaries and associates 22,815,840.88 28,045,215.53
Guizhou Jiading Mining Management Investment Co., Ltd. 18,000,000.00 18,000,000.00
Shenzhen KONKA E-display Co., Ltd. and its subsidiaries 4,687,019.00 5,147,213.00
Beijing Xuri Shengxing Technology Co., Ltd. 2,883,619.10 2,814,638.40
China Resources Company Limited and its subsidiaries and
associates
Dongguan Guankang Yuhong Investment Co., Ltd. 382,410.04 15,655,996.80
Econ Technology Co., Ltd. and its subsidiaries 359,175.04 355,586.25
Konka Huanjia Environmental Technology Co., Ltd. 4,353,280.41
Yantai Kangtang Construction Development Co., Ltd. 3,000,000.00
Kangkong Venture Capital (Shenzhen) Co., Ltd. 2,523,500.00
Subtotal of other related parties 7,602,764.25 9,165,998.82
Total 266,186,025.18 2,490,698,120.85
Advances from customers:
China Resources Company Limited and its subsidiaries and
associates
Total 64,052.75 61,285.03
XVI. Commitments and contingencies
(1) Capital commitments
Item Ending balance Beginning balance
Contract signed but hasn't been recognized in
financial statements
Commitment on construction and purchase of
long-lived assets
Large amount contract 54,352,776.17 85,942,612.22
Total 191,352,776.17 222,942,612.22
(2) Other Commitments
As of June 30, 2026, 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 (defendant), involving a subject matter amount of RMB
(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 752,147,500. The Company won both the first-instance and
second-instance trials. The plaintiff has filed an application for retrial. As of the date hereof, the case is under retrial
review.
(7) A case concerning a dispute over a construction contract between Longxin Construction Group Co., Ltd. (plaintiff) and
Nantong Kanghai Technology Industry Development Co., Ltd., a subsidiary of the Company (defendant), involving a
subject matter amount of RMB 80,000,000. As of the date of issuance of this report, the case was under trial.
(8) In 2018, to support the financing of Donggang Kangrun Environmental Treatment Co., Ltd. (hereinafter referred to as
"Donggang Kangrun"), a subsidiary of Econ Technology Co., Ltd., the Company 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 June 30, 2026, the
outstanding principal balance of loans borrowed by Donggang Kangrun from CCB Donggang Sub-branch amounted to
RMB 847,000,000.
(9) In 2019, to support the financing of Weifang Sihai Kangrun Investment and Operation Co., Ltd. (hereinafter referred to
as "Weifang Kangrun"), a subsidiary of Econ Technology Co., Ltd., the Company issued two support letters to Weifang
Branch of Industrial Bank Co., Ltd. (hereinafter referred to as "CIB Weifang Branch"). The main contents were
respectively as follows: "Our company will use self-raised funds and other financing channels to support the 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 June 30, 2026, the outstanding loan balance (principal) of Weifang
Kangrun to CIB Weifang Branch was RMB 577,851,500.
XVII. Events after the balance sheet date
As of the date of issuance of this financial report, the Group has no significant non-adjusting matters that need to be
disclosed.
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.
As of the date of issuance of this financial report, the Group has no other significant matters.
XIX. Notes to the main items of the parent company's financial statements
(1) Accounts receivable listed by aging
Aging Ending book balance Beginning book balance
Within 1 year (inclusive) 2,531,982,018.81 2,518,870,996.93
Over 5 years 875,369,864.86 857,898,045.25
Total 3,548,845,522.00 4,451,665,588.85
(2) Listed by withdrawal methods for provision for bad debts
Ending balance
Book balance Provision for bad debts
Type
Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
Provision set aside for
bad debts by the single 751,122,071.15 21.17 751,061,783.14 99.99 60,288.01
item
Ending balance
Book balance Provision for bad debts
Type
Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
Provision set aside for
bad debts by portfolio
Of which: Aging portfolio 276,159,766.31 7.78 153,593,122.20 55.62 122,566,644.11
Related Party Portfolio 2,521,563,684.54 71.05 2,521,563,684.54
Subtotal of portfolio 2,797,723,450.85 78.83 153,593,122.20 5.49 2,644,130,328.65
Total 3,548,845,522.00 100.00 904,654,905.34 25.49 2,644,190,616.66
Beginning balance
Book balance Provision for bad debts
Type
Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
Provision set aside for
bad debts by the single 750,993,030.62 16.87 750,932,742.61 99.99 60,288.01
item
Provision set aside 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
Name Beginning balance Ending balance
Reason
Provision s for
Provision for bad Provision for bad
Book balance Book balance percentage the
debts debts
(%) provisi
on
Not
CEFC Shanghai expecte
International 298,280,558.37 298,280,558.37 298,073,128.27 298,073,128.27 100.00 d to be
Group Limited recover
able
Not
Hongtu
expecte
Sanpower
Technology Co.,
recover
Ltd.
able
Not
Zhongfu
expecte
Tiangong
Construction
recover
Group Co., Ltd.
able
Not
CCCC First
expecte
Harbor
Engineering
recover
Company Ltd.
able
Not
China Energy
expecte
(Shanghai)
Industrial Co.,
recover
Ltd.
able
Shenzhen Not
Kanghongxing expecte
Intelligent 36,211,057.55 36,211,057.55 36,211,057.55 36,211,057.55 100.00 d to be
Technology Co., recover
Ltd. able
Others 39,780,648.89 39,720,360.88 40,117,119.52 40,056,831.51 99.85 Expecte
Beginning balance Ending balance
Reason
Provision s for
Name Provision for bad Provision for bad
Book balance Book balance percentage the
debts debts
(%) provisi
on
d to be
difficult
to
recover
Total 750,993,030.62 750,932,742.61 751,122,071.15 751,061,783.14 99.99 —
① In the portfolio, accounts receivable of provision for expected credit loss made by aging
Ending balance
Aging
Book balance Provision for bad debts Provision percentage (%)
Within 1 year 123,711,210.71 2,523,708.65 2.04
Over 5 years 110,467,636.54 110,467,636.54 100.00
Total 276,159,766.31 153,593,122.20 55.62
② In the portfolio, accounts receivable of provision for expected credit loss made by other methods
Ending balance
Aging
Book balance Provision for bad debts Provision percentage (%)
Related Party Portfolio 2,521,563,684.54
Total 2,521,563,684.54
(3) Provision for bad debts accrued, recovered or reversed for the current period
Type Beginning balance Changes in the current period
Provision Recovered or reversed
Provision for bad debts of
accounts receivable
Total 905,634,105.80 551,037.21 1,530,237.67
(Continued)
Changes in the current period
Type Ending balance
Charge-off or write-off Others
Provision for bad debts of
accounts receivable
Total 904,654,905.34
(4).Actual write-off of accounts receivable for the current period
No accounts receivable were actually written off in the current period.
(5) Top five accounts receivable by the debtor in terms of the ending balance and contract assets
The total amount of accounts receivable with top five ending balance categorized by debtors in the current period was
RMB 2,378,554,219.75, accounting for 67.02% of the total ending balance of accounts receivable. The total ending
balance of provision for bad debts correspondingly set aside was RMB 498,073,128.27.
Item Ending balance Beginning balance
Interest receivable
Dividends receivable 390,420,640.53 394,828,312.64
Other receivables 6,395,607,991.35 6,169,721,184.70
Total 6,786,028,631.88 6,564,549,497.34
(1) Classification of dividends receivable
Investee Ending balance Beginning balance
Hong Kong Konka Co., Ltd. 110,420,640.53 114,828,312.64
Suining Konka Industrial Park Development Co.,
Ltd.
Total 390,420,640.53 394,828,312.64
(1) Classification of other receivables by nature of payment
Nature of funds Ending book balance Beginning book balance
Intercourse funds with subsidiaries 8,154,896,677.01 7,338,448,596.60
Energy-saving subsidies receivable 141,549,150.00 141,549,150.00
Intercourse funds with other related parties 3,643,659,525.57 3,643,705,051.48
Deposit and margin 31,544,154.65 11,316,782.23
Others 58,658,753.52 54,245,272.51
Total 12,030,308,260.75 11,189,264,852.82
(2) Other receivables disclosed by aging
Aging Ending book balance Beginning book balance
Within 1 year (inclusive) 3,091,193,197.99 2,468,208,504.58
Over 5 years 1,897,509,441.67 1,906,123,741.67
Total 12,030,308,260.75 11,189,264,852.82
(3) Disclosure of other receivables by provision method for bad debts
Ending balance
Type
Book balance Provision for bad debts Book value
Provision
Percentage
Amount Amount percentage
(%)
(%)
Provision set aside for
bad debts by the single 6,715,213,580.00 55.82 5,586,417,529.90 83.19 1,128,796,050.10
item
Provision set aside for
bad debts by portfolio
Of which: Aging portfolio 43,611,732.24 0.36 36,890,141.82 84.59 6,721,590.42
Low-Risk Portfolio 34,958,479.12 0.29 11,392,597.68 32.59 23,565,881.44
Related Party Portfolio 5,236,524,469.39 43.53 5,236,524,469.39
Subtotal of portfolio 5,315,094,680.75 44.18 48,282,739.50 0.91 5,266,811,941.25
Total 12,030,308,260.75 100.00 5,634,700,269.40 46.84 6,395,607,991.35
Beginning balance
Book balance Provision for bad debts
Type
Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
Provision set aside for
bad debts by the single 5,578,850,648.69 49.86 4,974,026,480.15 89.16 604,824,168.54
item
Provision set aside 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
Aging Ending balance
Provision for bad Provision percentage
Book balance
debts (%)
Within 1 year 1,568,349,242.34 332,207.07 0.02
Over 5 years 59,399,507.90 45,046,764.77 75.84
Total 5,315,094,680.75 48,282,739.50 0.91
Phase I Phase II Phase III
Expected credit
Expected credit loss
Provision for bad Expected credit loss during the
during the whole Total
debts loss for the next whole outstanding
outstanding maturity
(with credit impairment)
credit impairment)
Balance as of January
Balance as of January
period
-- Transfer to Stage II -8,573.15 8,573.15
-- Transfer to Stage III
-- Reversal to Stage II
-- Reversal to Stage I
Provision for the current
period
Reversal in this period
Charge-off in the
current period
Write-off in the current
period
Phase I Phase II Phase III
Expected credit
Expected credit loss
Provision for bad Expected credit loss during the
during the whole Total
debts loss for the next whole outstanding
outstanding maturity
(with credit impairment)
credit impairment)
Other changes
Balance as of June 30,
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 the credit impairment after initial confirmation. For other receivables of credit impairment that have
occurred, the loss provision is measured according to the credit losses that have occurred throughout the duration.
(4) Provision for bad debts accrued, recovered or reversed for the current period
Changes in the current period
Type Beginning balance
Provision Recovered or reversed
Provision for bad debts of other
receivables
Total 5,019,543,668.12 615,156,601.28
(Continued)
Changes in the current period
Type Ending balance
Charge-off or write-off Others
Provision for bad debts of other
receivables
Total 5,634,700,269.40
(5) Other receivables actually written off in the current period
There were no other receivables actually written off in the current period.
(6) Other receivables of the top five ending balances collected by debtor
The total amount of other receivables with top five ending balance categorized by debtors in the current period was RMB
provision for bad debts correspondingly set aside was RMB 3,428,122,929.01.
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in
subsidiaries
Investment in associates 3,095,557,104.76 2,264,032,106.38 831,524,998.38 3,101,020,668.93 2,264,032,106.38 836,988,562.55
Total 10,924,116,716.59 2,998,417,559.31 7,925,699,157.28 10,926,245,480.76 2,979,212,106.38 7,947,033,374.38
(1) Investment in subsidiaries
Provision for Increase/decrease in this period
Provision for
Beginning balance impairment Ending balance
Investee Additional Decrease in Provision for impairment
(Book value) Beginning Others (Book value)
investment investment impairment Ending balance
balance
Konka Venture 2,550,000.00 2,550,000.00
Anhui Konka 122,780,937.98 122,780,937.98
Konka Electronic
Materials
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
Provision for Increase/decrease in this period
Provision for
Beginning balance impairment Ending balance
Investee Additional Decrease in Provision for impairment
(Book value) Beginning Others (Book value)
investment investment impairment Ending balance
balance
Telecommunications
Technology
Technology Industry
Development
Anhui Tongchuang 779,702,612.22 779,702,612.22
Kangjiatong 30,749,800.00 30,749,800.00
Pengrun Technology 25,500,000.00 25,500,000.00
Beijing Konka Electronics 200,000,000.00 200,000,000.00
Konka Circuit 745,682,721.18 3,334,800.00 749,017,521.18
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
Ji'an Konka 50,000.00 50,000.00
Provision for Increase/decrease in this period
Provision for
Beginning balance impairment Ending balance
Investee Additional Decrease in Provision for impairment
(Book value) Beginning Others (Book value)
investment investment impairment Ending balance
balance
Suining Konka Industrial
Park
Suining Electronic
Technological Innovation
Shenzhen Chuangzhi
Electrical Appliances
Chongqing
Optoelectronic 1,400,000,000.00 1,400,000,000.00
Technology
Kowin Memory
(Shenzhen)
Ningbo Kanghanrui
Electric Appliances
Suining Jiarun Property 10,000,000.00 10,000,000.00 10,000,000.00
Yibin Kangrun 67,000,000.00 67,000,000.00
Hainan Konka
Technology
Konka Cross-border
(Hebei)
Provision for Increase/decrease in this period
Provision for
Beginning balance impairment Ending balance
Investee Additional Decrease in Provision for impairment
(Book value) Beginning Others (Book value)
investment investment impairment Ending balance
balance
Konka Central China 30,000,000.00 30,000,000.00
Guizhou Kanggui
Material Technology
Nantong Kanghai 15,300,000.00 15,300,000.00
Jiangxi Konka High-tech
Park
Shangrao Konka
Electronic Technology 30,000,000.00 30,000,000.00
Innovation
Xi'an Kanghong
Technology Industry
Xi'an Konka Intelligent
Technology
Songyang Konka
Intelligent
Konka North China 30,000,000.00 30,000,000.00
Total 7,110,044,811.83 715,180,000.00 3,334,800.00 19,205,452.93 7,094,174,158.90 734,385,452.93
(2) Investments in associates
Increase/decrease in this period
Provision for
Profit or loss of Adjustments to
Beginning balance impairment
Investee Additional Decrease investment other
(Book value) Beginning
investment Investment recognized by the comprehensive
balance
equity method income
Anhui Kaikai Shijie E-commerce Co., Ltd. 85,892,934.52
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
Chuzhou Konka Technology Industry
Development Co., Ltd.
Chuzhou Kangjin Health Industrial
Development Co., Ltd.
Nantong Konka Technology Industrial Park
Operation Management Co., Ltd.
Chuzhou Kangxin Health Industry
Development Co., Ltd.
Increase/decrease in this period
Provision for
Profit or loss of Adjustments to
Beginning balance impairment
Investee Additional Decrease investment other
(Book value) Beginning
investment Investment recognized by the comprehensive
balance
equity method income
Dongguan Guankang Yuhong Investment
Co., Ltd.
Econ Technology 708,469,870.90 279,214,061.94 -1,257,918.18
Dongguan Kangjia New Materials
Technology Co., Ltd.
Chongqing ypfun Technology Co., Ltd. 1,578,447,233.41
Yantai Kangyun Industrial Development Co.,
Ltd.
E3 (Hainan) Technology Co., Ltd.
Shenzhen Kangjia Jiapin Intelligent Electrical
Apparatus Technology Co., Ltd.
Shenzhen KONKA E-display Co., Ltd. 27,435,255.38 1,575,000.00
Chongqing Yuanlv Benpao Real Estate Co.,
Ltd.
Shenzhen Kangpeng Digital Technology Co.,
Ltd.
Wuhan Kangtang Information Technology
Co., Ltd.
Sichuan Chengrui Real Estate Co., Ltd.
Sichuan Hongxinchen Real Estate 2,459,686.45
Increase/decrease in this period
Provision for
Profit or loss of Adjustments to
Beginning balance impairment
Investee Additional Decrease investment other
(Book value) Beginning
investment Investment recognized by the comprehensive
balance
equity method income
Development Co., Ltd.
Shenzhen Kangyue Industrial Co., Ltd. 230,011.61
Konka Huanjia Environmental Technology
Co., Ltd.
Kangrong Jiayuan Technology (Zhejiang)
Co., Ltd.
Total 836,988,562.55 2,264,032,106.38 -5,463,564.17
(Continued)
Increase/decrease in this period
Provision for
Cash dividends or Ending balance
Investee Changes in Other Provision for impairment
profits declared to Others (Book value)
Equities impairment Ending balance
be distributed
Anhui Kaikai Shijie E-commerce Co., Ltd. 85,892,934.52
Kunshan Kangsheng Investment
Development Co., Ltd.
Shaanxi Silk Road Yunqi Intelligent
Technology Co., Ltd.
Shenzhen Kanghongxing Intelligent 5,158,909.06
Increase/decrease in this period
Provision for
Cash dividends or Ending balance
Investee Changes in Other Provision for impairment
profits declared to Others (Book value)
Equities impairment Ending balance
be distributed
Technology Co., Ltd.
Shenzhen Zhongkang Beidou Technology
Co., Ltd.
Shenzhen Yaode Technology Co., Ltd. 214,559,469.35
Chuzhou Konka Technology Industry
Development Co., Ltd.
Chuzhou Kangjin Health Industrial
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.
Econ Technology 707,211,952.72 279,214,061.94
Dongguan Kangjia New Materials
Technology Co., Ltd.
Chongqing ypfun Technology Co., Ltd. 1,578,447,233.41
Yantai Kangyun Industrial Development Co.,
Ltd.
E3 (Hainan) Technology Co., Ltd.
Increase/decrease in this period
Provision for
Cash dividends or Ending balance
Investee Changes in Other Provision for impairment
profits declared to Others (Book value)
Equities impairment Ending balance
be distributed
Shenzhen Kangjia Jiapin Intelligent Electrical
Apparatus Technology Co., Ltd.
Shenzhen KONKA E-display Co., Ltd. 29,010,255.38
Chongqing Yuanlv Benpao Real Estate Co.,
Ltd.
Shenzhen Kangpeng Digital Technology Co.,
Ltd.
Wuhan Kangtang Information Technology
Co., Ltd.
Sichuan Chengrui Real Estate Co., Ltd.
Sichuan Hongxinchen Real Estate
Development Co., Ltd.
Shenzhen Kangyue Industrial Co., Ltd. 230,011.61
Konka Huanjia Environmental Technology
Co., Ltd.
Kangrong Jiayuan Technology (Zhejiang)
Co., Ltd.
Total 831,524,998.38 2,264,032,106.38
（1） Operating revenue and cost of sales
Amount in the current period Amount in the previous period
Item
Income Cost Income Cost
Principal
activity
Other
businesses
Total 815,867,619.82 784,529,846.90 568,971,528.57 543,252,254.22
（2） Information in relation to the trade price apportioned to the residual contract performance obligation
The amount of revenue corresponding to the performance obligations that had been signed but not yet
performed or not yet completed at the end of the current period was RMB 4,494,087.19, of which RMB
Amount in the current Amount in the previous
Item
period period
Long-term equity investment income calculated by the cost
method
Returns on long-term equity investments calculated by the
-5,463,564.17 -11,151,203.25
equity method
Return on investment arising from the disposal of long-term
equity investments
Investment income from financial assets held for trading during
the holding period
Investment income from disposal of financial assets held for
-6,257,897.51 -73,011,755.91
trading
Interest income from debt investments during the holding
period
Income from the derecognition of financial assets at amortized
-226,103.98
cost
Conversion of long-term equity investments accounted for by
the equity method to financial assets
Total -8,949,477.75 581,639,183.08
Descripti
Item Current amount
on
Profit or losses on disposal of non-current assets (including the portion offset for
-324,209.55
provisions for asset impairment)
Government grants included in profit and loss of the current period (except for
government subsidies that are closely related to the Company's normal business
operation, comply with national policies and are enjoyed in accordance with
defined criteria, and have a continuing impact on the Company's profit or loss)
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 Company’s ordinary
course of business)
Dispossession surcharge to non-financial institutions included in the current
gains/losses
Gains/ losses on entrusting others with investments or asset management
Gains/losses on loan entrustment 6,868,213.73
Losses on assets resulted from force majeure such as natural disasters
Reversed portions of impairment allowances for receivables which are tested
individually for impairment
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 merger 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 the 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
Descripti
Item Current amount
on
modification of equity incentive plans
Cash-settled share-based payments, gains and 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
Non-operating revenue and expenses other than the above 3,352,083.44
Other gains/losses that meet the definition of non-recurring gains/losses -40,264,602.91
Subtotal 50,613,295.98
Less: Income tax effects 8,666,238.74
Minority equity effects (after tax) 5,483,242.75
Total 36,463,814.49 —
(1) Particulars about other gains/losses that meet the definition of non-recurring gains/losses:
Item Amount Reason
During the Reporting Period, the amount of losses
arising from the Company's receivables from
Excessive losses of subsidiaries 14,525,336.77 subsidiaries with excessive losses was recognized
as "Net income attributable to owners of the parent
company", resulting in non-recurring gains/losses.
During the Reporting Period, the Company accrued
Interest on the equity repurchase price -54,789,939.68
interest on the equity repurchase price
(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 Profit or Loss (Revised in 2023) but
recognized by the Company as non-recurring profit or loss items and involving significant amounts, and
listed non-recurring profit or loss items recognized as recurring profit or loss items
Item Amount Reason
Government grants closely related to the normal
Software tax rebates, VAT credits and operation of the Company's business, which comply
deductions with national policies and are received continuously
based on a certain standard quota or quantitative
Item Amount Reason
amount
Earnings per share (RMB/share)
Weighted average
Profit for the reporting period Basic earnings per Diluted earnings per
Return on net assets (%)
share share
Net profit attributable to ordinary
Not applicable -0.0718 -0.0718
shareholders of the parent company
Net profit attributable to ordinary
shareholders of the parent company
Not applicable -0.0869 -0.0869
before non-recurring gains and
losses
(1) Differences in net profits and net assets between the financial reports disclosed in accordance
with the International Financial Reporting Standards (IFRS) and the PRC Generally Accepted
Accounting Principles (GAAP)
□ Applicable √ Not applicable
(2) Differences in net profits and net assets between the financial reports disclosed in accordance
with the overseas financial reporting standards and the PRC GAAP
□ Applicable √ Not applicable
(3) Explanations of the reasons for differences between accounting data under domestic and foreign
accounting standards. If adjustments have been made to the differences in data audited by an
overseas auditing firm, the name of the said overseas institution shall be specified.
□ Applicable √ Not applicable
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