KonkaGroupCo.,Ltd.AnnualReport2020
KONKAGROUPCO.,LTD.
ANNUALREPORT2020
2021-28
March2021
KonkaGroupCo.,Ltd.AnnualReport2020
PartIImportantNotes,TableofContentsandDefinitions
TheBoardofDirectors(orthe“Board”),theSupervisoryCommitteeaswellasthedirectors,supervisorsandseniormanagementofKonkaGroupCo.,Ltd.(hereinafterreferredtoasthe“Company”)herebyguaranteethefactuality,accuracyandcompletenessofthecontentsofthisReportanditssummary,andshallbejointlyandseverallyliableforanymisrepresentations,misleadingstatementsormaterialomissionstherein.LiuFengxi,theCompany’slegalrepresentative,LiChunlei,theCompany’sChiefFinancialOfficer(CFO),andGuoZhihua,headoftheCompany’sfinancialdepartment(equivalenttofinancialmanager)herebyguaranteethattheFinancialStatementscarriedinthisReportarefactual,accurateandcomplete.AlltheCompany’sdirectorshaveattendedtheBoardmeetingforthereviewofthisReportanditssummary.Anyplansforthefutureorotherforward-lookingstatementsmentionedinthisReportanditssummaryshallNOTbeconsideredasabsolutepromisesoftheCompanytoinvestors.Therefore,investorsareremindedtoexercisecautionwhenmakinginvestmentdecisions.TheBoardhasapprovedafinaldividendplanasfollows:basedonthe2,407,945,408shares,acashdividendofRMB1(taxinclusive)per10sharesistobedistributedtotheshareholders,withnobonusissuefromeitherprofitorcapitalreserves.ThisReportanditssummaryhavebeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionsshallprevail.
KonkaGroupCo.,Ltd.AnnualReport2020
TableofContents
PartIImportantNotes,TableofContentsandDefinitions ...... 2
PartIICorporateInformationandKeyFinancialInformation ...... 10
PartIIIBusinessSummary ...... 15
PartIVOperatingPerformanceDiscussionandAnalysis ...... 18
PartVSignificantEvents ...... 44
PartVIShareChangesandShareholderInformation ...... 98
PartVIIPreferredShares ...... 105
PartVIIIConvertibleCorporateBonds ...... 106
PartIXDirectors,Supervisors,SeniorManagementandStaff ...... 107
PartXCorporateGovernance ...... 118
PartXICorporateBonds ...... 130
PartXIIFinancialStatements ...... 134
PartXIIIDocumentsAvailableforReference ...... 418
KonkaGroupCo.,Ltd.AnnualReport2020
Definitions
| Term | Definition |
| The“Company”,the“Group”,“KonkaGroup”or“we” | KonkaGroupCo.,Ltd.anditsconsolidatedsubsidiaries,exceptwherethecontextotherwiserequires |
| KonkaVentures | KonkaVenturesDevelopment(Shenzhen)Co.,Ltd. |
| YantaiKonka | YantaiKonkaHealthcareEnterpriseServiceCo.,Ltd. |
| ChengduAnren | ChengduAnrenKonkaCulturalandCreativeIncubatorManagementCo.,Ltd. |
| KonkaEnterpriseService | GuiyangKonkaEnterpriseServiceCo.,Ltd. |
| ChuanghuiSmart | NanjingChuanghuiSmartTechnologyCo.,Ltd. |
| YibinKonkaIncubator | YibinKonkaIncubatorManagementCo.,Ltd. |
| AnhuiKonka | AnhuiKonkaElectronicCo.,Ltd. |
| KangzhiTrade | AnhuiKangzhiTradeCo.,Ltd. |
| KonkaFactoring | KonkaFactoring(Shenzhen)Co.,Ltd. |
| KonkaUnifortune | ShenzhenKonkaUnifortuneTechnologyCo.,Ltd. |
| JialiInternational | JialiInternational(HongKong)Limited |
| Wankaida | ShenzhenWankaidaScienceandTechnologyCo.,Ltd. |
| DongguanKonka | DongguanKonkaElectronicCo.,Ltd. |
| SuiningKonkaSmart | SuiningKonkaSmartTechnologyCo.,Ltd. |
| KonkaEurope | Konka(Europe)Co.,Ltd. |
| KonkaElectricalAppliances | ShenzhenKonkaElectricalAppliancesCo.,Ltd. |
| TelecommunicationTechnology | ShenzhenKonkaTelecommunicationsTechnologyCo.,Ltd. |
| KonkaMobility | KonkaMobilityCo.,Limited |
| MobileInterconnection | ShenzhenKonkaMobileInterconnectionTechnologyCo.,Ltd. |
| SichuanKonka | SichuanKonkaSmartTerminalTechnologyCo.,Ltd |
| YibinSmart | YibinKonkaSmartTechnologyCo.,Ltd. |
| AnhuiTongchuang | AnhuiKonkaTongchuangElectricalAppliancesCo.,Ltd. |
| AnhuiElectricalAppliance | AnhuiKonkaElectricalApplianceTechnologyCo.,Ltd. |
| FrestecRefrigeration | HenanFrestecRefrigerationApplianceCo.,Ltd. |
| FrestecSmartHome | HenanFrestecSmartHomeTechnologyCo.,Ltd. |
| FrestecElectricalAppliances | HenanFrestecElectricalAppliancesCo.,Ltd. |
| FrestecHouseholdAppliances | HenanFrestecHouseholdAppliancesCo.,Ltd. |
| JiangsuKonkaSmart | JiangsuKonkaSmartElectricalAppliancesCo.,Ltd. |
KonkaGroupCo.,Ltd.AnnualReport2020
| Kangjiatong | SichuanKangjiatongTechnologyCo.,Ltd. |
| PengrunTechnology | ShenzhenKonkaPengrunTechnology&IndustryCo.,Ltd. |
| JiaxinTechnology | JiaxinTechnologyCo.,Ltd. |
| DongguanPacking | DongguanKonkaPackingMaterialsCo.,Ltd. |
| E2info | ShenzhenE2infoNetworkTechnologyCo.,Ltd. |
| E2info(Hainan) | E2info(Hainan)NetworkTechnologyCo.,Ltd. |
| BeijingKonkaElectronic | BeijingKonkaElectronicCo.,Ltd. |
| KonkaLeasing | KonkaFinancialLeasing(Tianjin)Co.,Ltd. |
| KonkaCircuit | ShenzhenKangjiacircuitCo.,Ltd. |
| BoluoKonkaPrecision | BoluoKonkaPrecisionTechnologyCo.,Ltd. |
| XiamenDalong | XiamenDalongTradingCo.,Ltd. |
| BoluoKonka | BoluoKonkaPCBCo.,Ltd. |
| HongKongKonka | HongKongKonkaLimited |
| KonkaElectricalAppliancesInvestment | KonkaElectricalAppliancesInvestment&DevelopmentCo.,Ltd. |
| ChainKingdomMemoryTechnologies | ChainKingdomMemoryTechnologiesCo.,Limited |
| ChainKingdomMemoryTechnologies(Shenzhen) | ChainKingdomMemoryTechnologies(Shenzhen)Co.,Ltd. |
| HefeiKONSEMI | HefeiKONSEMIStorageTechnologyCo.,Ltd. |
| KonkaSmartTech | KonkaSmartTechLimited |
| Kangjietong | Kangjietong(HongKong)Limited |
| KonkaElectricalAppliancesInternationalTrading | KonkaElectricalAppliancesInternationalTradingCo.,Ltd. |
| KanghaoTechnology | KanghaoTechnologyCo.,Ltd. |
| KonkaNorthAmerica | KonkaNorthAmericaLLC |
| KonkaInvestment | ShenzhenKonkaInvestmentHoldingCo.,Ltd. |
| YibinKonkaTechnologyPark | YibinKonkaTechnologyParkOperationCo.,Ltd. |
| KonkaCapital | ShenzhenKonkaCapitalEquityInvestmentManagementCo.,Ltd. |
| KonkaSuiyong | KonkaSuiyongInvestment(Shenzhen)Co.,Ltd. |
| KangquanEnterprise | ShenzhenKangquanEnterpriseManagementConsultingCo.,Ltd. |
| KonkaSuyuan | ShenzhenKonkaSuyuanInvestmentIndustrialCo.,Ltd. |
| ShengxingIndustrial | ShenzhenKonkaShengxingIndustrialCo.,Ltd. |
| IndustrialParkDevelopment | ShenzhenKonkaIndustrialParkDevelopmentCo.,Ltd. |
| ZhitongTechnology | ShenzhenKonkaZhitongTechnologyCo.,Ltd. |
| ElectronicsTechnology | ShenzhenKonkaElectronicsTechnologyCo.,Ltd. |
| AnhuiZhilian | AnhuiKonkaZhilianE-CommerceCo.,Ltd. |
| Youzhihui | ShenzhenYouzhihuiTechnologyCo.,Ltd. |
| XiaojiaTechnology | ShenzhenXiaojiaTechnologyCo.,Ltd. |
KonkaGroupCo.,Ltd.AnnualReport2020
| HaimenKonka | HaimenKonkaSmartTechnologyCo.,Ltd. |
| ChengduKonkaSmart | ChengduKonkaSmartTechnologyCo.,Ltd. |
| ChengduKonkaElectronic | ChengduKonkaElectronicCo.,Ltd. |
| XingDaHongYe | GuangDongXingDaHongYeElectronicCo.,Ltd. |
| ShanghaiXinfeng | ShanghaiXinfengZhuoqunPCBCo.,Ltd. |
| LiaoyangKangshunSmart | LiaoyangKangshunSmartTechnologyCo.,Ltd. |
| LiaoyangKangshunRenewable | LiaoyangKangshunRenewableEnergyCo.,Ltd. |
| NanjingKonka | NanjingKonkaElectronicsCo.,Ltd. |
| YantaiLaikang | YantaiLaikangIndustrialDevelopmentCo.,Ltd. |
| EconTechnology | ShandongEconTechnologyCo.,Ltd. |
| BeijingEcon | BeijingEconRunfengTechnologyCo.,Ltd. |
| ShanghaiJiyi | ShanghaiJiyiEnvironmentalTechnologyCo.,Ltd. |
| BinzhouEconZhongke | BinzhouEconZhongkeEnvironmentalTechnologyCo.,Ltd. |
| LairunHolding | LaizhouLairunHoldingCo.,Ltd. |
| LairunEnvironmentalProtection | LaizhouLairunEnvironmentalProtectionCo.,Ltd. |
| LairunWastewater | LaizhouLairunWastewaterTreatmentCo.,Ltd. |
| BinhaiWastewater | LaizhouBinhaiWastewaterTreatmentCo.,Ltd. |
| EconEnvironmentalEngineering | EconEnvironmentalEngineeringCo.,Ltd. |
| RushanEcon | RushanEconWaterEnvironmentManagementCo.,Ltd. |
| BinzhouWeiyijie | BinzhouWeiyijieEnvironmentalTechnologyCo.,Ltd. |
| BinzhouBeihaiJingmai | BinzhouBeihaiJingmaiIndustrialDevelopmentCo.,Ltd. |
| Chunzhiran | YantaiChunzhiranEnvironmentalTechnologyCo.,Ltd. |
| DonggangKangrun | DonggangKangrunEnvironmentalManagementCo.,Ltd. |
| KangrunhongEnvironmental | KangrunhongEnvironmentalTechnology(Yantai)Co.,Ltd. |
| DayiKangrunWater | DayiKangrunWaterCo.,Ltd. |
| SuiningPengxiKangrun | SuiningPengxiKangrunEnvironmentalManagementCo.,Ltd. |
| SubeiKangrunWater | SubeiMongolAutonomousCountyKangrunWaterCo.,Ltd. |
| WeifangSihaiKangrun | WeifangSihaiKangrunInvestmentOperationCo.,Ltd. |
| LushanKangrunEnvironmental | LushanKangrunEnvironmentalManagementCo.,Ltd. |
| FunanKangrunWater | FunanKangrunWaterCo.,Ltd. |
| WuhanRunyuanWastewater | WuhanRunyuanWastewaterTreatmentCo.,Ltd. |
| TongchuanKangrunHonghui | TongchuanKangrunHonghuiEnvironmentalManagementCo.,Ltd. |
| TingyuanEnvironmental | TingyuanEnvironmentalTechnology(Shanghai)Co.,Ltd. |
| GaopingKangrun | GaopingKangrunEnvironmentalProtection&WaterCo.,Ltd. |
KonkaGroupCo.,Ltd.AnnualReport2020
| MengchengKangrun | MengchengKangrunAnjianWaterCo.,Ltd. |
| XixianKangrun | XixianKangrunXijianWaterEnvironmentDevelopmentCo.,Ltd. |
| ChongzhouKangrun | ChongzhouKangrunEnvironmentCo.,Ltd. |
| Xi’anKangrun | Xi’anGaolingKangrunEnvironmentalEngineeringCo.,Ltd. |
| AnkangKangrun | AnkangKangrunXinhengWaterEnvironmentCo.,Ltd. |
| ChangningKangrun | ChangningKangrunWaterCo.,Ltd. |
| BokangRenewable | BokangRenewableResources(Yantai)Co.,Ltd. |
| LinfenKangrun | LinfenKangrunJinzeWaterSupplyCo.,Ltd. |
| KonkaHuanjia | KonkaHuanjia(Dalian)EnvironmentalTechnologyCo.,Ltd. |
| KonkaHuanjia(Henan) | KonkaHuanjia(Henan)EnvironmentalTechnologyCo.,Ltd. |
| ShanghaiKonka | ShanghaiKonkaIndustrialCo.,Ltd. |
| YantaiKangjin | YantaiKangjinTechnologyDevelopmentCo.,Ltd. |
| JiangxiKonka | JiangxiKonkaNewMaterialTechnologyCo.,Ltd. |
| XinfengMicrocrystalline | JiangxiXinfengMicrocrystallineJadeCo.,Ltd. |
| NanoCrystallizedGlass | JiangxiGoldenPhoenixNanoCrystallizedGlassCo.,Ltd. |
| JiangsuKonkaSpecialMaterial | JiangsuKonkaSpecialMaterialTechnologyCo.,Ltd. |
| ShenzhenNianhua | ShenzhenNianhuaEnterpriseManagementCo.,Ltd. |
| ShenzhenKONSEMI | ShenzhenKONSEMICo.,Ltd. |
| HefeiKONSEMI | HefeiKONSEMIStorageTechnologyCo.,Ltd. |
| YiheElectronic | HefeiYiheElectronicCo.,Ltd. |
| ChongqingKonka | ChongqingKonkaTechnologyDevelopmentCo.,Ltd. |
| ShenzhenHuiyingTechnology | ShenzhenKonkaHuiyingTechnologyCo.,Ltd. |
| ChongqingHuiyingTechnology | ChongqingKonkaHuiyingTechnologyCo.,Ltd. |
| KonkaEco-Development | ShenzhenKonkaEco-DevelopmentInvestmentCo.,Ltd. |
| SuiningKonkaIndustrialPark | SuiningKonkaIndustrialParkDevelopmentCo.,Ltd. |
| KonkaRonghe | KonkaRongheIndustrialTechnology(Zhejiang)Co.,Ltd. |
| SuiningElectronicTechnologicalInnovation | SuiningKonkaElectronicTechnologicalInnovationCo.,Ltd. |
| ShenzhenChuangzhiElectricalAppliances | ShenzhenKonkaChuangzhiElectricalAppliancesCo.,Ltd. |
| Kanghong(Yantai)Environmental | Kanghong(Yantai)EnvironmentalTechnologyCo.,Ltd. |
| ChongqingKangxingrui | ChongqingKangxingruiEnvironmentalTechnologyCo.,Ltd. |
| ChongqingKangxingruiAutomobileRecycling | ChongqingKangxingruiScrapedAutomobileRecyclingCo.,Ltd. |
| ChongqingOptoelectronicTechnologyResearchInstitute | ChongqingKonkaOptoelectronicTechnologyResearchInstituteCo.,Ltd. |
| XinyingSemiconductor | KonkaXinyingSemiconductorTechnology(Shenzhen)Co.,Ltd. |
KonkaGroupCo.,Ltd.AnnualReport2020
| KonkaXinyunSemiconductor | KonkaXinyunSemiconductorTechnology(Yancheng)Co.,Ltd. |
| Jiangkang(Shanghai)Technology | Jiangkang(Shanghai)TechnologyCo.,Ltd. |
| NingboKanghanruiElectricalAppliances | NingboKanghanruiElectricalAppliancesCo.,Ltd. |
| KonkaIntelligentManufacturing | ShenzhenKonkaIntelligentManufacturingTechnologyCo.,Ltd. |
| SuiningJiarunProperty | SuiningJiarunPropertyCo.,Ltd. |
| YantaiKangyun | YantaiKangyunIndustrialDevelopmentCo.,Ltd. |
| YantaiKangyunProperty | YantaiKangyunPropertyDevelopmentCo.,Ltd. |
| ChongqingKangleiOptoelectronic | ChongqingKangleiOptoelectronicTechnologyCo.,Ltd. |
| YibinKangrun | YibinKangrunEnvironmentalTechnologyCo.,Ltd. |
| HenanKangxinProperty | HenanKangxinPropertyCo.,Ltd. |
| KonkaMaterial | HainanKonkaMaterialTechnologyCo.,Ltd. |
| ShenzhenKangxinProperty | ShenzhenKangxinPropertyCo.,Ltd. |
| HenanKanghanProperty | HenanKanghanPropertyCo.,Ltd. |
| ChengduKonkaIncubator | ChengduKonkaIncubatorManagementCo.,Ltd. |
| Cross-BorderTechnologicalInnovation | ShenzhenKonkaCross-BorderTechnologicalInnovationServiceCo.,Ltd. |
| KonkaEnterpriseManagement | GuizhouKonkaEnterpriseManagementServiceCo.,Ltd. |
| YoushiKangrong | YoushiKangrongCultureCommunicationCo.,Ltd. |
| LifeElectricAppliance | ShenzhenKonkaLifeElectricApplianceCo.,Ltd. |
| CommercialSystemTechnology | ShenzhenKonkaCommercialSystemTechnologyCo.,Ltd. |
| FrestecSmart | HenanFrestecSmartEcoElectricalAppliancesCo.,Ltd. |
| E3info | E3info(Hainan)TechnologyCo.,Ltd. |
| YifangTechnology | ShenzhenKonkaYifangTechnologyCo.,Ltd. |
| YuekangSemiconductor | YuekangSemiconductorTechnology(Yantai)Co.,Ltd. |
| KangshiVirtual | KangshiVirtualTechnology(Yantai)Co.,Ltd. |
| IndustrialNewTown | SichuanKonkaIndustrialNewTownDevelopmentCo.,Ltd. |
| KangxinTechnology | ShenzhenKonkaKangxinTechnologyCo.,Ltd. |
| HainanTechnology | HainanKonkaTechnologyIndustryDevelopmentCo.,Ltd. |
| NanjingKonka | NanjingKonkaSmartTechnologyCo.,Ltd. |
| ZhongshanKangxinElectronic | ZhongshanKangxinElectronicTechnologyCo.,Ltd. |
| ZhongshanKang’ao | ZhongshanKang’aoElectronicCo.,Ltd. |
| BoxingXingkangEnvironmental | BoxingXingkangEnvironmentalTechnologyCo.,Ltd. |
| YantaiKonkaIndustrial | YantaiKonkaIndustrialCo.,Ltd. |
| ShandongKangxin | ShandongKangxinIndustrialDevelopmentCo.,Ltd. |
| ShenzhenMorsemi | ShenzhenMorsemiSemiconductorTechnologyCo.,Ltd. |
KonkaGroupCo.,Ltd.AnnualReport2020
| ZhengmaoSemiconductor | ChongqingZhengmaoSemiconductorCo.,Ltd. |
| DongguanKonkaInvestment | DongguanKonkaInvestmentCo.,Ltd. |
| Kanghong(Yantai)EnvironmentalTechnologyPark | Kanghong(Yantai)EnvironmentalTechnologyParkCo.,Ltd. |
| ChongqingKonkaPropertyDevelopment | ChongqingKonkaPropertyDevelopmentCo.,Ltd. |
| ChongqingXingyiProperty | ChongqingKonkaXingyiPropertyCo.,Ltd. |
| ChongqingFuzeProperty | ChongqingKonkaFuzePropertyCo.,Ltd. |
| DebaoNewMaterial | AnhuiKonkaDebaoNewMaterialTechnologyCo.,Ltd. |
| ChuzhouKangxinHealthIndustry | ChuzhouKangxinHealthIndustryDevelopmentCo.,Ltd. |
| KangxinlongEnvironmentalProtection | HubeiKangxinlongEnvironmentalProtectionCo.,Ltd. |
| ChongqingChengda | ChongqingChengdaPropertyCo.,Ltd. |
| ChongqingChunfu | ChongqingChunfuPropertyCo.,Ltd. |
| ChongqingLangheng | ChongqingLanghengPropertyCo.,Ltd. |
| MorsemiHongKong | MorsemiSemiconductorTechnology(HongKong)Limited |
| CSRC | TheChinaSecuritiesRegulatoryCommission |
| SZSE | TheShenzhenStockExchange |
| CSRCShenzhen | TheShenzhenBureauoftheChinaSecuritiesRegulatoryCommission |
| RMB,RMB’0,000,RMB’00,000,000 | ExpressedintheChinesecurrencyofRenminbi,expressedintensofthousandsofRenminbi,expressedinhundredsofmillionsofRenminbi |
KonkaGroupCo.,Ltd.AnnualReport2020
PartIICorporateInformationandKeyFinancialInformation
ICorporateInformation
| Stockname | KonkaGroup-A,KonkaGroup-B | Stockcode | 000016,200016 |
| Changedstockname(ifany) | N/A | ||
| Stockexchangeforstocklisting | ShenzhenStockExchange | ||
| CompanynameinChinese | 康佳集团股份有限公司 | ||
| Abbr. | 康佳集团 | ||
| CompanynameinEnglish(ifany) | KONKAGROUPCO.,LTD | ||
| Abbr.(ifany) | KONKAGROUP | ||
| Legalrepresentative | LiuFengxi | ||
| Registeredaddress | 15-24/F,KonkaR&DCenter,28KejiSouthTwelfthRoad,ScienceandTechnologyPark,YuehaiStreet,NanshanDistrict,Shenzhen,GuangdongProvince,China | ||
| Zipcode | 518057 | ||
| Officeaddress | 15-24/F,KonkaR&DCenter,28KejiSouthTwelfthRoad,ScienceandTechnologyPark,YuehaiStreet,NanshanDistrict,Shenzhen,GuangdongProvince,China | ||
| Zipcode | 518057 | ||
| Companywebsite | www.konka.com | ||
| Emailaddress | szkonka@konka.com | ||
IIContactInformation
| BoardSecretary | SecuritiesRepresentative | |
| Name | WuYongjun | MiaoLeiqiang |
| Address | BoardSecretariat,24/F,KonkaR&DCenter,28KejiSouthTwelfthRoad,ScienceandTechnologyPark,YuehaiStreet,NanshanDistrict,Shenzhen,GuangdongProvince,China | BoardSecretariat,24/F,KonkaR&DCenter,28KejiSouthTwelfthRoad,ScienceandTechnologyPark,YuehaiStreet,NanshanDistrict,Shenzhen,GuangdongProvince,China |
| Tel. | 0755-26609138 | 0755-26609138 |
| Fax | 0755-26601139 | 0755-26601139 |
| Emailaddress | szkonka@konka.com | szkonka@konka.com |
IIIMediaforInformationDisclosureandPlacewherethisReportIsLodged
| NewspapersdesignatedbytheCompanyforinformationdisclosure | SecuritiesTimes,etc. |
KonkaGroupCo.,Ltd.AnnualReport2020
| WebsitedesignatedbyCSRCforpublicationofthisReport | http://www.cninfo.com.cn/new/index |
| PlacewherethisReportislodged | BoardSecretariat,24/F,KonkaR&DCenter,28KejiSouthTwelfthRoad,ScienceandTechnologyPark,YuehaiStreet,NanshanDistrict,Shenzhen,GuangdongProvince,China |
IVChangetoCompanyRegisteredInformation
| Unifiedsocialcreditcode | 914403006188155783 |
| ChangetoprincipalactivityoftheCompanysincegoingpublic(ifany) | Nochange |
| Everychangeofcontrollingshareholdersinceincorporation(ifany) | Nochange |
VOtherInformationTheindependentauditfirmhiredbytheCompany:
| Name | ShinewingCertifiedPublicAccountantsLLP |
| Officeaddress | 9/F,BlockA,FuhuaMansion,No.8ChaoyangmenNorthStreet,DongchengDistrict,Beijing,China |
| Accountantswritingsignatures | GuoDongchaoandZhanMiaoling |
TheindependentsponsorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyintheReportingPeriod:
□Applicable√NotapplicableTheindependentfinancialadvisorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyintheReportingPeriod:
□Applicable√NotapplicableVIKeyFinancialInformationIndicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.
□Yes√No
| 2020 | 2019 | 2020-over-2019change(%) | 2018 | |
| Operatingrevenue(RMB) | 50,351,836,554.87 | 55,119,125,478.72 | -8.65% | 46,126,797,341.33 |
| Netprofitattributabletothelistedcompany’sshareholders(RMB) | 477,633,250.14 | 212,034,210.08 | 125.26% | 411,289,744.68 |
| Netprofitattributabletothelisted | -2,367,590,806.95 | -1,875,722,546.18 | -26.22% | -795,400,491.44 |
KonkaGroupCo.,Ltd.AnnualReport2020
| company’sshareholdersbeforeexceptionalgainsandlosses(RMB) | ||||
| Netcashgeneratedfrom/usedinoperatingactivities(RMB) | 178,616,528.21 | -1,543,947,284.59 | 111.57% | -3,229,823,872.66 |
| Basicearningspershare(RMB/share) | 0.1984 | 0.0881 | 125.20% | 0.1708 |
| Dilutedearningspershare(RMB/share) | 0.1984 | 0.0881 | 125.20% | 0.1708 |
| Weightedaveragereturnonequity(%) | 5.79% | 2.62% | 3.17% | 5.11% |
| 31December2020 | 31December2019 | Changeof31December2020over31December2019(%) | 31December2018 | |
| Totalassets(RMB) | 49,876,267,493.61 | 42,586,955,452.27 | 17.12% | 32,985,061,889.03 |
| Equityattributabletothelistedcompany’sshareholders(RMB) | 8,428,640,176.97 | 8,068,505,598.13 | 4.46% | 8,104,736,790.53 |
Indicatebytickmarkwhetherthelowerofthenetprofitattributabletothelistedcompany’sshareholdersbeforeandafterexceptionalgainsandlosseswasnegativeforthelastthreeaccountingyears,andthelatestindependentauditor’sreportindicatedthattherewasuncertaintyabouttheCompany’sabilitytocontinueasagoingconcern.
□Yes√NoIndicatebytickmarkwhetherthelowerofthenetprofitattributabletothelistedcompany’sshareholdersbeforeandafterexceptionalgainsandlosseswasnegative.
√Yes□No
| Item | 2020 | 2019 | Note |
| Operatingrevenue(RMB) | 50,351,836,554.87 | 55,119,125,478.72 | |
| Deductionsfromoperatingrevenue(RMB) | 56,103,050.39 | 31,986,803.24 | Revenuefromscrapsales,utilitiesrevenue,handlingchargesreceivedandotherrevenuenotrelatedtotheprincipalbusinessactivities |
| Operatingrevenuenetofdeductions(RMB) | 50,295,733,504.48 | 55,087,138,675.48 |
KonkaGroupCo.,Ltd.AnnualReport2020
VIIAccountingDataDifferencesunderChina’sAccountingStandardsforBusinessEnterprises(CAS)andInternationalFinancialReportingStandards(IFRS)andForeignAccountingStandards
1.NetProfitandEquityunderCASandIFRS
□Applicable√NotapplicableNodifferencefortheReportingPeriod.
2.NetProfitandEquityunderCASandForeignAccountingStandards
□Applicable√NotapplicableNodifferencefortheReportingPeriod.VIIIKeyFinancialInformationbyQuarter
Unit:RMB
| Q1 | Q2 | Q3 | Q4 | |
| Operatingrevenue | 7,806,520,237.49 | 9,717,663,659.25 | 12,276,961,374.42 | 20,550,691,283.71 |
| Netprofitattributabletothelistedcompany’sshareholders | -220,602,940.37 | 315,304,733.00 | 520,661,894.19 | -137,730,436.68 |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses | -333,520,116.21 | -316,490,379.26 | -843,908,630.71 | -873,671,680.77 |
| Netcashgeneratedfrom/usedinoperatingactivities | -1,031,223,468.58 | -45,143,458.90 | -99,506,432.85 | 1,354,489,888.54 |
IndicatebytickmarkwhetheranyofthequarterlyfinancialdatainthetableaboveortheirsummationsdiffersmateriallyfromwhathavebeendisclosedintheCompany’squarterlyorinterimreports.
□Yes√NoIXExceptionalGainsandLosses
√Applicable□Notapplicable
Unit:RMB
| Item | 2020 | 2019 | 2018 | Note |
| Gainorlossondisposalofnon-currentassets(inclusiveofimpairmentallowancewrite-offs) | 2,431,648,255.26 | 1,202,401,420.41 | 732,818,574.90 | |
| Governmentsubsidieschargedtocurrentprofit | 908,546,202.24 | 1,204,519,346.40 | 259,609,022.27 |
KonkaGroupCo.,Ltd.AnnualReport2020
| orloss(exclusiveofgovernmentsubsidiesgivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsasperthegovernment’suniformstandards) | ||||
| GainequaltotheamountbywhichinvestmentcostsfortheCompanytoobtainsubsidiaries,associatesandjointventuresarelowerthantheCompany’senjoyablefairvalueofidentifiablenetassetsofinvesteeswhenmakinginvestments | 220,045,229.63 | |||
| Gainorlossonassetsentrustedtootherentitiesforinvestmentormanagement | 18,476,648.12 | 71,541,978.85 | 182,022,653.32 | |
| Gainorlossondebtrestructuring | 1,127,066.94 | 14,515,006.57 | ||
| Gainorlossonfair-valuechangesinheld-for-tradingandderivativefinancialassetsandliabilities&incomefromdisposalofheld-for-tradingandderivativefinancialassetsandliabilitiesandotherinvestmentsindebtobligations(exclusiveoftheeffectiveportionofhedgesthatariseintheCompany’sordinarycourseofbusiness) | 96,316,772.78 | 49,472,415.17 | 39,542,461.74 | |
| Gainorlossonloanentrustments | 64,616,181.90 | 1,992,676.20 | 1,389,042.48 | |
| Non-operatingincomeandexpenseotherthantheabove | 54,271,037.60 | 121,189,478.51 | 73,907,331.00 | |
| Othergainsandlossesthatmeetthedefinitionofexceptionalgain/loss | 1,081,111.64 | 145,586,810.18 | 17,974,523.98 | |
| Less:Incometaxeffects | 544,211,364.67 | 545,067,993.60 | 253,497,204.45 | |
| Non-controllinginterestseffects(netoftax) | 186,647,854.72 | 178,394,382.43 | 67,121,398.75 | |
| Total | 2,845,224,057.09 | 2,087,756,756.26 | 1,206,690,236.12 | -- |
ExplanationofwhytheCompanyreclassifiesasrecurrentanexceptionalgain/lossitemdefinedorlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems:
√Applicable□Notapplicable
| Item | Amountinvolved(RMB) | Reason |
| Taxrebatesonsoftware | 30,710,313.50 | GovernmentsubsidiesgivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsaspergovernment’suniformstandards |
KonkaGroupCo.,Ltd.AnnualReport2020
PartIIIBusinessSummary
IPrincipalActivityoftheCompanyintheReportingPeriod(I)TheConsumerElectronicDivisionThisdivisionprimarilycomprisesthemultimediasub-divisionandthewhitegoodssub-division,withdetailsasfollows:
1.TheMultimediaSub-DivisionTheCompanyprovidesmultimediaproductsandservices,includingcolourTVsandInternetTVservices,forbothdomesticandoverseasmarkets.ThedomesticsalesoftheCompany’scolourTVsarerealizedmainlythroughB2B(Business-to-Business)andB2C(Business-to-Consumer),withitsbranchcompanies,businessdepartmentsandafter-salesmaintenancepointsoperatingacrossthecountry.AndtheCompanyprofitsfromthemarginsbetweenthecostsandthesellingpricesofitscolourTVs.AsforsellingitscolourTVsabroad,theCompanymainlyreliesonB2B.ItscolourTVsaresoldtoAsiaPacific,MiddleEast,Central&SouthAmerica,EastEurope,etc.AndoperatingprofitsourceisalsothedifferencesbetweenthecostsandthesellingpricesofitscolourTVs.InternetbusinessisbasedontheintelligentTVterminalssoldbyourcompany.Itmainlycarriesoutthreeaspectsofbusiness.Firstly,itworkswithotherInternetcompaniestoprovideenduserswith,amongothercontent,video,educational,music,medicalandgamecontenttogenerateearnings.Secondly,itanalysesuserbehavioursandoffercertainfree,interactiveservicestoincreaseattractivenesstousers,promoteitsbrandandstimulatedesireforitshardwareproducts.Finally,itistryingtobuildanInternetTVplatformwithtensofmillionsofusers,onwhichitwillprofitthroughcommercialandapplicationdistribution.ThisInternetTVbusinessiskeytotheCompany’sInternet-orientedtransformationandupgradetoadevelopmentmodelof“hardware+software”and“smartTV+endusers”.
2.TheWhiteGoodsSub-DivisionThewhitegoodsproducedbytheCompanymainlyincluderefrigerators,washingmachines,airconditioners,freezers,etc.,whicharesoldthroughB2BandB2Cmainlytothedomesticmarket.AndtheCompanyprofitsfromthemarginsbetweenthecostsandthesellingpricesofitswhitegoods.TheCompanystrengthenedthefoundationofourwhitegoodsbrandsthroughtheacquisitionoftheFrestecbrand.TheCompanyalsooptimizedtheinternalR&D,production,procurement,sales,andservicesprocessesandintegratedtheexternalchannelresourcestoenablechannelsharingbetweentheupstreamprocurementprocessesanddownstreamsalesprocesses.Bytakingadvantageofthisopportunity,theCompanyimprovedtheproductandsalesstructureandenhancedthe
KonkaGroupCo.,Ltd.AnnualReport2020
managementofonlinechannels.(II)TheIndustryTradeBusinessIntheindustrytradebusiness,theCompanybenefitsfrompurchasingandprocessingICchips,LCDscreens,etc.,whicharerawmaterialsinitstraditionalcorebusiness,fromupstreamsuppliersand
sellingthemtodownstreamcustomers.TheindustrytradebusinesscanhelptheCompanyestablishgoodrelationshipswithitsupstreamsuppliersanddownstreamcustomers,andkeepitinformedofpricesofthematerialsusedinitsproductionforbettercostcontroloveritsexistingproducts.Additionally,itisabletofacilitatethedevelopmentofthesemiconductorbusinessbyhelpingaccumulatecustomerresourcesforthesemiconductorandchipbusiness,providesaleschannels,andachieveaccuratematchingofmarketdemand,withashortenedproductdevelopmentperiodandalowerriskofmismatchingofR&Dandmarketdemand.(III)TheEnvironmentalProtectionDivisionCurrently,thisbusinessfocusesonwatertreatment,recyclingofrenewableresourcesandthenewmaterialofglassceramic.WaterengineeringPPP(Public-PrivatePartnership)projectsareundertakenunderBOT(Build-Operate-Transfer)orEPC(EnergyPerformanceContracting)models.Renewableresourcesarecollected,sorted,processed,distributedandsold.(IV)TheSemi-ConductorDivisionCurrently,theCompanyisengagedinstorage,optoelectronics,etc.withrespecttothesemi-conductorbusiness.Instorage,theCompanyprimarilydesignsandmarketsmasterstoragechips,andengageinpackagingandtestingofstorageproducts.Inoptoelectronics,theCompanyprimarilydevelopsMicroLED-relatedproducts.IISignificantChangesinMajorAssets
1.SignificantChangesinMajorAssets
| Majorassets | Mainreasonforsignificantchanges |
| Equityassets | Nosignificantchange |
| Fixedassets | Nosignificantchange |
| Intangibleassets | Nosignificantchange |
| Constructioninprogress | Theendingamountincreased115.23%fromthebeginningamount,primarilydrivenbynewenvironmentengineeringinprogress. |
KonkaGroupCo.,Ltd.AnnualReport2020
2.MajorAssetsOverseas
□Applicable√NotapplicableIIICoreCompetitivenessAnalysisTheCompany’scorecompetitivenessliesinitsR&Dability,brand,marketingnetworkandhumanresources.Ithasdevelopedathree-levelR&Dsystemof“KonkaResearchInstitute-MultimediaR&DCentre-specializeddesigninstitutes”,establishedartificialintelligenceinternetofthingscomprehensivelaboratoryand5gUltraHDlaboratorywithmajoruniversitiesorscientificresearchinstitutions,establishedacademicianworkstation,andbuiltatechnologyresearchalliancematchingtheindustriallayout,withnearly100corekeytechnologiesandabout150talentsThecompanyhasaR&Dteamofmorethan20people,andhasintroducedtwoprojectsofmicroledandmemorymasterchip,withmorethan100industrytechnicaltalents.Intermsofbrand,thecompanycontinuestopromotebrandstrategyconstruction,systemconstruction,imageconstructionandculturalconstruction,focusesonimprovingthescientificandinternationalimageoftheenterprise,strengthensthebrandstatus,hasacertainbrandawarenessandreputationintheconsumergroup,andhasgoodbrandcreditinbanksandotherfinancingchannels.Intermsofmarketingchannels,thecompanyinnovateschannelreform,cooperatesonlineandofflineforwin-winresults,andstrivesfordevelopmentathomeandabroad.Offlinechannel,thecompanyhasmorethan40branches,morethan200offices,morethan3000after-salesservicestoresinallprovincesandcitiesofChina,andthemarketingandservicenetworkisalloverthecountry;onlinechannel,thecompanyhassettledintmall,Jingdong,Suning,vipshopandothermainstreame-commerceplatformstoinnovateanddeveloplivee-commercebusiness,andseekanewgrowthpoleforbusinessdevelopment;overseaschannel,thecompanyThecompany'sbusinesscoversLatinAmerica,Europe,AsiaPacificandothercountriesandregions,withasoundmarketingnetwork.Thecompanyhasmanyyearsofexperienceinseniormanagementandexecutiveteam.
KonkaGroupCo.,Ltd.AnnualReport2020
PartIVOperatingPerformanceDiscussionandAnalysis
IOverviewIn2020,theCompanycontinuedtodrivebusinessdevelopmentthroughtechnologicalinnovation,implementthedevelopmentmodelof"Technology+Industry+Parks",andfosteradevelopmentstrategythataimstopromoteindustrialbusinessesthroughtechnologicalinnovation,incubateindustrialclustersthroughthecoreindustrialbusinesses,driveregionaldevelopmentthroughtheindustrialclusters,andnurturethetechnologyandindustrialbusinessesthroughregionaldevelopment-enabledresources,whilepursuingthemissionofdevelopingtheCompanyintoaninnovationandtechnology-drivenindustrialgroup.For2020,theCompanyrecordedoperatingrevenueofRMB50.352billion.NetprofitattributabletotheCompanyastheparentstoodatRMB478million,representingayear-on-yearriseof125.26%.WhattheCompanyhasaccomplishedin2020issummarizedasfollows:
(I)IncreasedinvestmentininnovationandachievedtechnologicalbreakthroughsIn2020,followingtheguidingprincipleof"independentinnovation+technologyacquisition,"theCompanyincreasedinvestmentinR&D,focusingonsemiconductor,AI(artificialintelligence)andothersectors.TheannualR&DinvestmentwasRMB684million,up36.57%year-on-year.FortheR&Dsystem,theCompanyestablishedtechnologicalresearchpartnershipswithnotableuniversities,technologyenterprisesandresearchinstitutionsthatmatchourindustriallayout.Thisinitiativeledtotheestablishmentofseveraljointlaboratories,includingtheAIIoTComprehensiveLaboratory,5GUltra-High-DefinitionLaboratory,andGuangdong-HongKongBigDataImageandCommunicationApplicationJointLaboratory.Intermsoftalentacquisition,theCompanyacquiredaMicro-LEDteamof269people,attracted18doctoralandpostdoctoralresearcherstojoinusandpartneredwithateamofacademicianstoestablishanacademicianworkstation.IntermsofR&Dachievements,theCompanyrealizedthemassproductionandcommerciallaunchofmemorymasterchips,andtheMicroLEDprojectsuccessfullyilluminatedultra-smallchipsandsuccessfullydeveloped7-inchflexibleMicroLEDdisplays.Inaddition,theprogrammeledbytheCompanytheResearchandIndustrializationoftheNext-generationInternetIntelligentTerminalKeyTechnologywontheGuangdongProvincialSecondPrizeforProgressinScienceandTechnologyin2019,theprogrammeResearchandIndustrializationofKeyQualityManagementTechnologiesforFoodinRefrigeratorswontheThirdPrizeofAnhuiProvincialAwardforProgressinScienceandTechnology,andapatenttitledFuzzyControlMethodforRotatingSpeedofRefrigeratorInverterCompressorwontheHenanProvincialAwardforAchievementinScienceand
KonkaGroupCo.,Ltd.AnnualReport2020
Technology.(II)IndustryfundsystemthatenablestheimplementationofstrategieswasestablishedIn2020,theCompanyestablishedanindustryfundsystemtoenablecoordinatedstrategyimplementationandindustrialdevelopment.Theinitiativehasestablishedaseriesofindustryfunds,suchasYibinKanghuiElectronicInformationEquityInvestmentFund,YanchengKangyanInformationIndustryEquityInvestmentFund,ChongqingKangxinSemiconductorIndustryEquityInvestmentFund,KunshanXinjiaEmergingIndustriesEquityInvestmentFundandTongxiang-WuzhenJiayuDigitalEconomyIndustryFund.(III)BusinessOperationIntroduction
1.IndustrialProductDivision
(1)TheMultimediaSub-divisionIn2020,focusingonreformandinnovation,theMultimediaSub-divisioncontinuedtodriveorganizationoptimizationandimplementedaseriesoforganizationrestructuring,salesmodelre-engineering,costreduction,andefficiencyimprovementmeasures.Centeringonthethemeof“buildinghigh-endbrands,localizingoverseasresourcesanddiversifyingmanufacturing,"thesub-divisionimplementedseveraloperationoptimizationandmanagementimprovementprojectsandsignificantlyreducedoperatingcosts,layingafoundationforfurtherreformandcontinuousoperationupgrading.
(2)TheWhiteGoodsSub-divisionIn2020,withtheacquisitionofChangzhouBeko'sfrontloadingwashingmachineproductionlines,theWhiteGoodsSub-divisionimprovedtheoverallstrengthofourwashingmachineproductbusinessesandenrichedtheportfolioofwhitegoodsproducts(refrigerators,washingmachines,andairconditioners)withupgradeddevelopmentstrategies.Inaddition,withthecoordinatedoperationoftheKonkaandFrestecbrands,theSub-divisionmadefurtherbreakthroughsinbrandbuilding,increasedtheproductioncapacityforairconditioners,focusedonstrategiesforcreatinghot-sellingproducts,andrealizedagrowthinourwhitegoodsbusinesses.
(3)TheEnvironmentalProtectionSub-divisionIn2020,theEnvironmentalProtectionSub-divisiondevelopedourenvironmentalprotectionbusinessesintoamoresystematicstructurethatcentersonwaterandsolidwastetreatment,renewableresourcesandnewmaterials.Activeeffortswerealsomadeforexpansionintonewsectors,suchasbio-organisms(Pleaseconfirmmytranslationorclarifytheintendedmessage.)andchemicaltreatmentofsolidwasteandexhaustgas.
(4)TheSemiconductorSub-divisionIn2020,intheoptoelectronicssector,theCompanyestablishedR&DandproductionlinescoveringtheentiremanufacturingprocessofMicroLED,realizedsmall-batchpilotproductionruns,completetheapplicationfornearly700corepatents,andlaunchedsmall-pitchMicroLED
KonkaGroupCo.,Ltd.AnnualReport2020
microcrystallinedisplays,flexibledisplays,8KMicroLEDcommercialdisplays,MicroLEDwatchesandotherproducts.Inthestoragefield,thecompanyindependentlydesignsthestoragemasterchipproductstorealizemassproductionandsales;secondly,thecompanyhasdevelopednearly45embeddedhardwareandsolid-stateharddiskproductsandrealizedthemarketing;inaddition,thecompanyisactivelypromotingtheimplementationofthestoragechippackagingtestbase,andcompletingthelayoutinthe"design+sealtest+sales"linkofthestorageindustry.
(5)TheMobileInternetSub-divisionIn2020,theMobileInternetSub-divisiondefinedcommunicationtechnologyasacoreenabler,focusedonexploringthe5GIoTsector,andimplementedthe"1(smartphone)+3(tabletcomputer,wirelessrouterandsmartaccesscontrol)+N(mobilecommunicationaccessories)"productstrategy.
(6)ThePCBSub-divisionIn2020,thePCBSub-divisionbuiltShenzhenKonkaCircuitCo.,Ltd.intoaplatformforunifiedprocurementandsales,therebyimprovingoperationsmanagementefficiency.WiththekickoffoftheSuiningKonkaCircuitIndustrialParkproject,the"industry+park"modeachievedinitialsuccess.
2.TechnologyParkDivisionIn2020,continuingtopursuethe"Technology+Industry+Parks"developmentmode,theCompanylaunchedmorethantentechnologyparkprojects--includingtheupgradedoldfacilityofDongguanKonkaElectronicCo.,Ltd.,KonkaMinghuK-CareTown,YanchengYangtzeRiverDeltaHeadquartersBase,FrestechRefrigerationIndustrialParkandSmartTerminalsExportandProductionBase--anddevelopedthenew"Industry+Parks+Fund"expansionmode.Atpresent,whilecontinuingtoupgradeexistingbusinessesthroughmeansofsmarttechnologiesandimprovingthecorecompetitivenessofthetechnologyindustrysectorbytakingadvantageoftheindustryclusters,theTechnologyParkSub-divisionworkedtooptimizeassetallocationthroughequitytransferandothermeansandacceleratetheturnoverofcapital,withtheaimoffurthernurturingthedevelopmentofthetechnologyindustrysector.
3.PlatformServiceDivision
(1)TheIndustryTradeBusinessIn2020,theIndustryTradeSub-divisionactivelypromotesthetransformationfromtradetoindustry,andcontinuouslyadjuststhebusinessstructurewhilecontinuouslyimprovingandimprovingtheriskcontrolmode.
(2)TheInternetSub-divisionIn2020,withsteppedupeffortstoenhanceourproducts'basicfunctionalities,theInternetSub-divisionplanned,developed,andcommerciallylaunchedseveralmajorproducts,includingDouping,YixueandYihudong.Withcontinuouseffortstoupgradeourmulti-scenariooperation
KonkaGroupCo.,Ltd.AnnualReport2020
mode,theCompanyrecordedacontinuousgrowthinadvertisementbusinesses,OTTmembershiprevenueaboveRMB200millionandagrowthof55%inoperatingincomefromdigitalentertainmentbusinesses.
4.FinancialInvestmentDivision
(1)TheInvestmentSub-divisionIn2020,theCompanyestablishedseveralindustryfunds,includingYibinKanghuiElectronicInformationEquityInvestmentFund,YanchengKangyanInformationIndustryEquityInvestmentFund,ChongqingKangxinSemiconductorIndustryEquityInvestmentFund,KunshanXinjiaEmergingIndustriesEquityInvestmentFundandTongxiang-WuzhenJiayuDigitalEconomyIndustryFund.Thesefundsservedwelltosupporttheimplementationofstrategiesanddevelopmentofindustrialbusinesses.
(2)TheVentureCapitalInvestmentSub-divisionIn2020,theVentureCapitalInvestmentSub-divisioncompletedtheconstructionofanationalmakerspace,whichhasattractedabatchofhigh-techenterprisestoparticipate.IICoreBusinessAnalysis(I)OverviewSee“IOverview”above.(II)RevenueandCostAnalysis
1.BreakdownofOperatingRevenue
Unit:RMB
| 2020 | 2019 | Change(%) | |||
| Operatingrevenue | As%oftotaloperatingrevenue(%) | Operatingrevenue | As%oftotaloperatingrevenue(%) | ||
| Total | 50,351,836,554.87 | 100% | 55,119,125,478.72 | 100% | -8.65% |
| Byoperatingdivision | |||||
| Electronics | 14,279,587,069.66 | 28.36% | 14,746,927,518.74 | 26.75% | -3.17% |
| Industrytrade | 30,483,602,365.87 | 60.54% | 32,744,925,411.86 | 59.41% | -6.91% |
| Environmentalbusiness | 4,823,779,902.39 | 9.58% | 7,079,397,665.91 | 12.85% | -31.86% |
| Semiconductor | 282,969,230.63 | 0.56% | ① | - | - |
| Other | 481,897,986.32 | 0.96% | 547,874,882.21 | 0.99% | -12.04% |
| Byproductcategory | |||||
KonkaGroupCo.,Ltd.AnnualReport2020
| ColorTVs | 7,519,625,331.33 | 14.93% | 8,765,607,417.92 | 15.90% | -14.21% |
| Whitegoods | 3,842,051,456.02 | 7.63% | 3,829,318,820.56 | 6.95% | 0.33% |
| Industrytrade | 30,483,602,365.87 | 60.55% | 32,744,925,411.86 | 59.41% | -6.91% |
| Environmentalbusiness | 4,823,779,902.39 | 9.58% | 7,079,397,665.91 | 12.84% | -31.86% |
| Semiconductor | 282,969,230.63 | 0.56% | ② | - | - |
| Other | 3,399,808,268.63 | 6.75% | 2,699,876,162.47 | 4.90% | 25.92% |
| Byoperatingsegment | |||||
| Domestic | 19,911,879,269.36 | 39.55% | 20,324,715,174.80 | 36.87% | -2.03% |
| Overseas | 30,439,957,285.51 | 60.45% | 34,794,410,303.92 | 63.13% | -12.51% |
①②thesemiconductorbusinessofthecompanyisnotaccountedseparatelyin2019,sothereisnocomparable
data.
2.OperatingDivision,ProductCategoryorOperatingSegmentContributingover10%ofOperatingRevenueorOperatingProfit
√Applicable□Notapplicable
Unit:RMB
| Operatingrevenue | Costofsales | Grossprofitmargin | YoYchangeinoperatingrevenue(%) | YoYchangeincostofsales(%) | YoYchangeingrossprofitmargin(%) | |
| Byoperatingdivision | ||||||
| Electronics | 14,279,587,069.66 | 12,768,278,497.25 | 10.58% | -3.17% | -2.67% | -0.46% |
| Industrytrade | 30,483,602,365.87 | 30,183,532,940.90 | 0.98% | -6.91% | -6.77% | -0.14% |
| Environmentalbusiness | 4,823,779,902.39 | 4,097,138,754.02 | 15.06% | -31.86% | -35.77% | 5.17% |
| Byproductcategory | ||||||
| ColorTVs | 7,519,625,331.33 | 6,925,658,808.00 | 7.90% | -14.21% | -13.49% | -0.77% |
| Industrytrade | 30,483,602,365.87 | 30,183,532,940.90 | 0.98% | -6.91% | -6.77% | -0.14% |
| Environmentalbusiness | 4,823,779,902.39 | 4,097,138,754.02 | 15.06% | -31.86% | -35.77% | 5.17% |
| Byoperatingsegment | ||||||
| Domestic | 19,911,879,269.36 | 17,538,443,668.86 | 11.92% | -2.03% | -1.51% | -0.47% |
KonkaGroupCo.,Ltd.AnnualReport2020
| Overseas | 30,439,957,285.51 | 30,056,620,681.12 | 1.26% | -12.51% | -12.45% | -0.07% |
CorebusinessdataoftheprioryearrestatedaccordingtothechangedstatisticalcaliberfortheReportingPeriod:
□Applicable√Notapplicable
3.WhetherRevenuefromPhysicalSalesIsHigherthanServiceRevenue
√Yes□No
| Operatingdivision | Item | Unit | 2020 | 2019 | Change(%) |
| Electronics | Unitsales | 0,000units | 1,269 | 1,434 | -11.51% |
| Output | 0,000units | 1,244 | 1,523 | -18.32% | |
| Inventory | 0,000units | 89 | 105 | -15.24% |
Anyover30%YoYmovementsinthedataaboveandwhy:
□Applicable√Notapplicable
4.ExecutionProgressofMajorSignedSalesContractsintheReportingPeriod
□Applicable√Notapplicable
5.BreakdownofCostofSalesByproductcategory
Unit:RMB
| Productcategory | Item | 2020 | 2019 | Change(%) | ||
| Costofsales | As%oftotalcostofsales(%) | Costofsales | As%oftotalcostofsales(%) | |||
| ColorTVs | ColorTVs | 6,925,658,808.00 | 14.55% | 8,005,508,211.90 | 15.35% | -13.49% |
| Whitegoods | Whitegoods | 3,317,107,750.97 | 6.97% | 3,299,314,084.65 | 6.33% | 0.54% |
| Industrytrade | Industrytrade | 30,183,532,940.90 | 63.42% | 32,376,857,384.01 | 62.10% | -6.77% |
| Environmentalbusiness | Environmentalbusiness | 4,097,138,754.02 | 8.61% | 6,379,216,880.51 | 12.24% | -35.77% |
| Semiconductor | Semiconductor | 275,286,437.09 | 0.58% | ③ | - | - |
| Other | Other | 2,796,339,659.00 | 5.87% | 2,077,301,939.97 | 3.98% | 34.61% |
③Thecompanydidnotconductseparateaccountingforsemiconductorbusinessin2019,sothereisno
comparabledata.Note:
Costofsaleschangedaccordinglywithoperatingrevenue.
6.ChangesintheScopeofConsolidatedFinancialStatementsfortheReportingPeriod
√Yes□No
KonkaGroupCo.,Ltd.AnnualReport2020
Unit:RMB
| Nameofsubsidiary | Registeredcapital | TheCompany’sinterest(%) | Dateofchange | Reasonforchange |
| BoxingXingkangEnvironmentalTechnologyCo.,Ltd. | 100,000,000.00 | 35.70% | 2020-11-19 | De-registered |
| AnhuiKonkaDebaoNewMaterialTechnologyCo.,Ltd. | 5,000,000.00 | 60.00% | 2020-12-7 | De-registered |
| Kanghong(Yantai)EnvironmentalTechnologyParkCo.,Ltd. | 10,000,000.00 | 51.00% | 2020-9-29 | De-registered |
| HubeiKangxinlongEnvironmentalProtectionCo.,Ltd. | 30,000,000.00 | 51.00% | 2020-12-8 | De-registered |
| ShenzhenKonkaKangxinTechnologyCo.,Ltd. | 10,000,000.00 | 51.00% | 2020-11-20 | De-registered |
| HenanFrestecSmartEcoElectricalAppliancesCo.,Ltd. | 10,000,000.00 | 51.00% | 2020-9-27 | De-registered |
| YuekangSemiconductorTechnology(Yantai)Co.,Ltd. | 100,000,000.00 | 100.00% | 2020-2-24 | De-registered |
| SichuanKonkaIndustrialNewTownDevelopmentCo.,Ltd. | 100,000,000.00 | 51.00% | 2020-12-8 | De-registered |
| HainanKonkaTechnologyIndustryDevelopmentCo.,Ltd. | 100,000,000.00 | 51.00% | 2020-11-17 | De-registered |
| GuizhouKonkaEnterpriseManagementServiceCo.,Ltd. | 5,000,000.00 | 51.00% | 2020-8-26 | De-registered |
| NanjingKonkaSmartTechnologyCo.,Ltd. | 50,000,000.00 | 100.00% | 2020-11-17 | De-registered |
| ShandongKangxinIndustrialDevelopmentCo.,Ltd. | 100,000,000.00 | 51.00% | 2020-12-24 | De-registered |
| ShenzhenKonkaCommercialSystemTechnologyCo.,Ltd. | 12,000,000.00 | 81.00% | 2020-12-7 | De-registered |
| ShenzhenKonkaLifeElectricApplianceCo.,Ltd. | 42,000,000.00 | 75.00% | 2020-12-10 | De-registered |
| YantaiKonkaIndustrialCo.,Ltd. | 100,000,000.00 | 89.71% | 2020-12-31 | De-registered |
| YoushiKangrongCultureCommunicationCo.,Ltd. | 70,000,000.00 | 70.00% | 2020-7-1 | De-registered |
| WeifangSikangInvestmentOperationCo.,Ltd. | 150,000,000.00 | 32.8338% | 2020-3-25 | De-registered |
| ZhongshanKangxinElectronicTechnologyCo.,Ltd. | 1,000,000.00 | 51.00% | 2020-12-4 | De-registered |
KonkaGroupCo.,Ltd.AnnualReport2020
| KangshiVirtualTechnology(Yantai)Co.,Ltd. | 100,000,000.00 | 100.00% | 2020-12-28 | De-registered |
| SuiningKonkaSmartTechnologyCo.,Ltd. | 100,000,000.00 | 100.00% | 2020-12-21 | Newlyincorporated |
| HenanFrestecSmartHomeTechnologyCo.,Ltd. | 50,000,000.00 | 51.00% | 2020-8-26 | Newlyincorporated |
| JiangsuKonkaSmartElectricalAppliancesCo.,Ltd. | 120,000,000.00 | 51.00% | 2020-9-11 | Newlyincorporated |
| KangshiVirtualTechnology(Yantai)Co.,Ltd. | 100,000,000.00 | 100.00% | 2020-9-21 | Newlyincorporated |
| ZhongshanKangxinElectronicTechnologyCo.,Ltd. | 1,000,000.00 | 51.00% | 2020-6-9 | Newlyincorporated |
| ZhongshanKang’aoElectronicCo.,Ltd. | 43,500,000.00 | 51.00% | 2020-9-3 | Newlyincorporated |
| LiaoyangKangshunSmartTechnologyCo.,Ltd. | 10,000,000.00 | 100.00% | 2020-5-9 | Newlyincorporated |
| LiaoyangKangshunRenewableEnergyCo.,Ltd. | 50,000,000.00 | 100.00% | 2020-9-10 | Newlyincorporated |
| NanjingKonkaElectronicsCo.,Ltd. | 10,000,000.00 | 100.00% | 2020-6-18 | Newlyincorporated |
| GaopingKangrunEnvironmentalProtection&WaterCo.,Ltd. | 100,000,000.00 | 48.45% | 2020-5-29 | Newlyincorporated |
| MengchengKangrunAnjianWaterCo.,Ltd. | 100,000,000.00 | 43.35% | 2020-6-19 | Newlyincorporated |
| XixianKangrunXijianWaterEnvironmentDevelopmentCo.,Ltd. | 163,780,500.00 | 26.01% | 2020-4-16 | Newlyincorporated |
| ChongzhouKangrunEnvironmentCo.,Ltd. | 50,000,000.00 | 42.67% | 2020-8-28 | Newlyincorporated |
| Xi’anGaolingKangrunEnvironmentalEngineeringCo.,Ltd. | 73,710,000.00 | 48.45% | 2020-8-28 | Newlyincorporated |
| AnkangKangrunXinhengWaterEnvironmentCo.,Ltd. | 100,000,000.00 | 26.01% | 2020-9-10 | Newlyincorporated |
| LinfenKangrunJinzeWaterSupplyCo.,Ltd. | 95,000,000.00 | 39.24% | 2020-12-30 | Newlyincorporated |
| ChangningKangrunWaterCo.,Ltd. | 50,000,000.00 | 45.89% | 2020-10-19 | Newlyincorporated |
| BokangRenewableResources(Yantai)Co.,Ltd. | 30,000,000.00 | 26.01% | 2020-12-28 | Acquired |
| JiangsuKonkaSpecialMaterialTechnologyCo.,Ltd. | 100,000,000.00 | 51.00% | 2020-12-24 | Newlyincorporated |
| ChongqingKangxingruiScrapedAutomobileRecyclingCo.,Ltd. | 100,000,000.00 | 51.00% | 2020-4-17 | Newlyincorporated |
| KonkaXinyunSemiconductorTechnology(Yancheng)Co.,Ltd. | 100,000,000.00 | 56.00% | 2020-4-17 | Newlyincorporated |
| YantaiKangyunPropertyDevelopmentCo., | 10,000,000.00 | 51.00% | 2020-11-27 | Newlyincorporated |
KonkaGroupCo.,Ltd.AnnualReport2020
| Ltd. | ||||
| ChongqingKangleiOptoelectronicTechnologyCo.,Ltd. | 50,000,000.00 | 51.00% | 2020-2-27 | Newlyincorporated |
| YibinKangrunEnvironmentalTechnologyCo.,Ltd. | 100,000,000.00 | 83.83% | 2020-4-21 | Newlyincorporated |
| HenanKangxinPropertyCo.,Ltd. | 50,000,000.00 | 51.00% | 2020-8-24 | Newlyincorporated |
| ShenzhenKangxinPropertyCo.,Ltd. | 50,000,000.00 | 51.00% | 2020-12-21 | Newlyincorporated |
| HenanKanghanPropertyCo.,Ltd. | 50,000,000.00 | 51.00% | 2020-12-28 | Newlyincorporated |
| ChongqingChengdaPropertyCo.,Ltd. | 50,000,000.00 | 51.00% | 2020-9-14 | Newlyincorporated |
| ChongqingChunfuPropertyCo.,Ltd. | 50,000,000.00 | 51.00% | 2020-9-21 | Newlyincorporated |
| ChongqingLanghengPropertyCo.,Ltd. | 50,000,000.00 | 51.00% | 2020-9-23 | Newlyincorporated |
| ChongqingChengdaPropertyCo.,Ltd. | 50,000,000.00 | 33.00% | 2020-12-24 | Losingcontrolpower |
| ChongqingChunfuPropertyCo.,Ltd. | 50,000,000.00 | 33.00% | 2020-12-24 | Losingcontrolpower |
| ChongqingLanghengPropertyCo.,Ltd. | 50,000,000.00 | 33.00% | 2020-12-24 | Losingcontrolpower |
| MorsemiSemiconductorTechnology(HongKong)Limited | HKD10,000.00 | 30.00% | 2020-9-21 | Losingcontrolpower |
| ChuzhouKangxinHealthIndustryDevelopmentCo.,Ltd. | 30,000,000.00 | 49.00% | 2020-12-21 | Losingcontrolpower |
| DongguanKonkaInvestmentCo.,Ltd. | 100,000,000.00 | 49.00% | 2020-9-25 | Losingcontrolpower |
| ChongqingZhengmaoSemiconductorCo.,Ltd. | 10,000,000.00 | 30.00% | 2020-9-21 | Losingcontrolpower |
| ChongqingKonkaFuzePropertyCo.,Ltd. | 50,000,000.00 | 33.00% | 2020-11-25 | Losingcontrolpower |
| ChongqingKonkaXingyiPropertyCo.,Ltd. | 50,000,000.00 | 33.00% | 2020-11-25 | Losingcontrolpower |
| ChongqingKonkaPropertyDevelopmentCo.,Ltd. | 50,000,000.00 | 33.00% | 2020-11-25 | Losingcontrolpower |
| ChengduKonkaIncubatorManagementCo.,Ltd. | 5,000,000.00 | 15.30% | 2020-12-21 | Losingcontrolpower |
| ShenzhenKonkaCross-BorderTechnologicalInnovationServiceCo.,Ltd. | 1,000,000.00 | 15.30% | 2020-12-22 | Losingcontrolpower |
| ShenzhenMorsemiSemiconductorTechnologyCo.,Ltd. | 10,000,000.00 | 30.00% | 2020-9-21 | Losingcontrolpower |
| ShenzhenKonkaYifangTechnologyCo.,Ltd. | 10,000,000.00 | 40.00% | 2020-6-11 | Losingcontrolpower |
| E3info(Hainan)TechnologyCo.,Ltd. | 20,000,000.00 | 40.00% | 2020-6-11 | Losingcontrolpower |
| ZhongshanKang’aoElectronicCo.,Ltd. | 43,500,000.00 | 0.00% | 2020-12-24 | Losingcontrolpower |
KonkaGroupCo.,Ltd.AnnualReport2020
7.MajorChangestotheBusinessScopeorProductorServiceRangeintheReportingPeriod
□Applicable√Notapplicable
8.MajorCustomersandSuppliersMajorcustomers:
| Totalsalestotopfivecustomers(RMB) | 21,341,550,423.86 |
| Totalsalestotopfivecustomersas%oftotalsalesoftheReportingPeriod(%) | 42.38% |
| Totalsalestorelatedpartiesamongtopfivecustomersas%oftotalsalesoftheReportingPeriod(%) | 0.00% |
Topfivecustomers:
| No. | Customer | SalesrevenuecontributedfortheReportingPeriod(RMB) | As%oftotalsalesrevenue(%) |
| 1 | CustomerA | 7,088,945,710.19 | 14.08% |
| 2 | CustomerB | 5,732,788,382.07 | 11.39% |
| 3 | CustomerC | 5,039,393,889.26 | 10.01% |
| 4 | CustomerD | 1,952,295,474.93 | 3.88% |
| 5 | CustomerE | 1,528,126,967.40 | 3.03% |
| Total | -- | 21,341,550,423.86 | 42.38% |
Otherinformationaboutmajorcustomers:
√Applicable□NotapplicableNoneofthetopfivecustomerswererelatedpartiesoftheCompany.AndnoneoftheCompany’sdirectors,supervisors,executiveofficers,coretechnicians,over5%shareholders,actualcontrolleroranyotherrelatedpartiesheldequityinterestsinthemajorcustomers,directlyorindirectly.Majorsuppliers:
| Totalpurchasesfromtopfivesuppliers(RMB) | 21,908,733,213.06 |
| Totalpurchasesfromtopfivesuppliersas%oftotalpurchasesoftheReportingPeriod(%) | 46.71% |
| Totalpurchasesfromrelatedpartiesamongtopfivesuppliersas%oftotalpurchasesoftheReportingPeriod(%) | 0.00% |
Topfivesuppliers:
| No. | Supplier | PurchaseintheReportingPeriod(RMB) | As%oftotalpurchases(%) |
| 1 | SupplierA | 7,868,804,100.18 | 16.78% |
| 2 | SupplierB | 6,855,261,976.07 | 14.61% |
| 3 | SupplierC | 3,031,001,228.37 | 6.46% |
KonkaGroupCo.,Ltd.AnnualReport2020
| 4 | SupplierD | 2,505,747,474.44 | 5.34% |
| 5 | SupplierE | 1,647,918,434.00 | 3.52% |
| Total | -- | 21,908,733,213.06 | 46.71% |
Otherinformationaboutmajorsuppliers:
√Applicable□NotapplicableNoneofthetopfivecustomerswererelatedpartiesoftheCompany.AndnoneoftheCompany’sdirectors,supervisors,executiveofficers,coretechnicians,over5%shareholders,actualcontrolleroranyotherrelatedpartiesheldequityinterestsinthemajorcustomers,directlyorindirectly.(III)Expense
Unit:RMB
| 2020 | 2019 | Change(%) | Reasonforanysignificantchange | |
| Sellingexpense | 1,825,626,804.27 | 2,303,132,732.06 | -20.73% | |
| Administrativeexpense | 1,022,981,943.34 | 856,529,327.62 | 19.43% | |
| Financecosts | 1,091,609,967.76 | 775,888,813.14 | 40.69% | Greaterfluctuationsinexchangeratesintheyear |
| R&Dexpense | 681,878,611.65 | 500,600,102.23 | 36.21% | ContinuousincreaseinR&Dinvestments |
(IV)R&DInvestments
√Applicable□NotapplicableWithintheReportingPeriod,theCompanyinvestedRMB684millionastheR&DInvestment,realizingayear-on-yeargrowthof36.57%.TheprogrammesledbytheCompanytheResearchandIndustrializationoftheNext-generationInternetIntelligentTerminalKeyTechnology,FuzzyControlMethodforRotatingSpeedofRefrigeratorInverterCompressorandtheResearchandIndustrializationofKeyQualityManagementTechnologiesforFoodinRefrigeratorswontheGuangdongProvincialSecondPrizeforProgressinScienceandTechnology,HenanAwardforAchievementinScienceandTechnology,andtheThirdPrizeofHenanProvincialAwardforProgressinScienceandTechnology,respectively.The5G+8KmultimodallivestreamingsystemdevelopedbytheCompanywasoneofthefivewinnersoftheProductExcellenceAwardoftheGlobal5GApplicationCompetition(heldinShenzhen,China).TheCompanyusedthetechnologytosupporttheXinhuaNewsAgencyfor5G+8K+satellitelivereportofthe2020annualsessionsoftheCPCandCPPCC.Publicfinancialsupportwasgrantedtothreeresearchprojects,whichwereappliedbytheCompanyindependentlyorjointly--theGuangdong-HongKongBigDataImageandCommunicationApplicationJointLaboratoryprojectapprovedbythe2020GuangdongSpecialFundforScienceandTechnologyInnovationStrategy,theDevelopmentofMiniLEDBacklightsfor
KonkaGroupCo.,Ltd.AnnualReport2020
High-PerformanceDisplaysprojectapprovedasaSpecialProjectoftheOpenCompetitioncategorybythe2020AnhuiFundforMajorandSpecialScienceandTechnologyProjectsandtheShenzhenResearchCenterofSmartIntegratedDisplaysEngineeringTechnologyprojectapprovedasa2021projectbyShenzhenEngineeringTechnologyResearchCenter,ShenzhenScienceandTechnologyInnovationCommission.WhiletheCompanywascontinuouslyimprovingthecorecompetitiveness,itcontinuedcorrespondingtechnicalinnovationandvariousproposalsforrationalizationsoastoincreasetheproductionefficiencyandenhancethecorecompetitiveness.DetailsaboutR&Dinvestments:
| 2020 | 2019 | Change(%) | |
| NumberofR&Dpersonnel | 1504 | 1,494 | 0.67% |
| R&Dpersonnelas%oftotalemployees | 8.74% | 7.75% | 0.99% |
| R&Dinvestments(RMB) | 681,878,611.65 | 500,600,102.23 | 36.57% |
| R&Dinvestmentsas%ofoperatingrevenue | 1.36% | 0.91% | 0.45% |
| CapitalizedR&Dinvestments(RMB) | 1,811,835.62 | 0 | |
| CapitalizedR&Dinvestmentsas%oftotalR&Dinvestments | 0.27% | 0% | 0.27% |
ReasonsforanysignificantYoYchangeinthepercentageofR&Dinvestmentsinoperatingrevenue:
□Applicable√NotapplicableReasonforanysharpvariationinthepercentageofcapitalizedR&Dinvestmentsandrationale:
□Applicable√Notapplicable(V)CashFlows
Unit:RMB
| Item | 2020 | 2019 | Change(%) |
| Subtotalofcashgeneratedfromoperatingactivities | 52,043,626,482.73 | 59,732,534,490.78 | -12.85% |
| Subtotalofcashusedinoperatingactivities | 51,865,009,954.52 | 61,276,481,775.37 | -15.34% |
| Netcashgeneratedfrom/usedinoperatingactivities | 178,616,528.21 | -1,543,947,284.59 | 111.57% |
| Subtotalofcashgeneratedfrominvestingactivities | 4,798,350,613.92 | 2,952,154,902.91 | 62.54% |
| Subtotalofcashusedininvestingactivities | 7,250,899,403.98 | 6,814,764,242.49 | 6.40% |
| Netcashgeneratedfrom/usedininvestingactivities | -2,452,548,790.06 | -3,862,609,339.58 | 36.51% |
| Subtotalofcashgeneratedfromfinancingactivities | 22,866,838,295.94 | 32,403,367,267.48 | -29.43% |
KonkaGroupCo.,Ltd.AnnualReport2020
| Subtotalofcashusedinfinancingactivities | 20,731,825,242.51 | 25,938,350,195.40 | -20.07% |
| Netcashgeneratedfrom/usedinfinancingactivities | 2,135,013,053.43 | 6,465,017,072.08 | -66.98% |
| Netincreaseincashandcashequivalents | -195,645,803.98 | 1,059,552,435.50 | -118.46% |
Explanationofwhyanyofthedataabovevariessignificantly:
√Applicable□NotapplicableNetcashgeneratedfrom/usedinfinancingactivitieschangedprimarilybecausetherewasanissueofcorporatebondsofRMB5billionlastyear,withnocomparableeventsintheReportingPeriod.Netcashgeneratedfrom/usedinfinancingactivitieschangedprimarilyduetoduringthereportingperiod,thecompany'sinventoryturnoveraccelerated,theamountofinventorydecreased,andtheamountofadvancereceiptsincreasedyearonyear.ReasonforanybigdifferencebetweenthenetoperatingcashflowandthenetprofitforthisReportingPeriod:theincreaseincashdepositsthatcannotbewithdrawnatanytime.
□Applicable√NotapplicableIIIAnalysisofNon-CoreBusinesses
√Applicable□Notapplicable
Unit:RMB
| Amount | As%oftotalprofit | Source/Reason | Exceptionalorrecurrent | |
| Returnoninvestment | 2,433,336,004.85 | 484.86% | Incomefromtransferofequityinterests | Exceptional |
| Gain/lossonchangesinfairvalue | 19,089,541.66 | 3.80% | Exceptional | |
| Assetimpairments | -462,407,098.47 | -92.14% | Impairmentlossallowances | Exceptional |
| Non-operatingincome | 87,126,795.41 | 17.36% | Taxrebatesofsoftwareisrecurrentandothersareuncertain | |
| Non-operatingexpense | 25,590,474.86 | 5.10% | Exceptional |
KonkaGroupCo.,Ltd.AnnualReport2020
IVAnalysisofAssetsandLiabilities
1.SignificantChangesinAssetCompositionIndicatebytickmarkwhethertheCompanyhasadoptedthenewaccountingstandardsgoverningrevenueandleasessince2020andrestatedthebeginningamountsofrelevantfinancialstatementlineitemsintheyear.
√Applicable□Notapplicable
Unit:RMB
| 31December2020 | 1January2020 | Changeinpercentage(%) | Reasonforanysignificantchange | |||
| Amount | As%oftotalassets | Amount | As%oftotalassets | |||
| Monetaryassets | 5,431,530,180.90 | 10.89% | 6,599,360,051.61 | 15.49% | -4.60% | |
| Accountsreceivable | 3,900,897,623.59 | 7.82% | 3,804,339,643.15 | 8.93% | -1.11% | |
| Inventories | 4,521,300,677.41 | 9.07% | 5,307,497,440.88 | 12.46% | -3.39% | |
| Investmentproperty | 538,585,668.29 | 1.08% | 400,197,374.07 | 0.94% | 0.14% | |
| Long-termequityinvestments | 4,375,833,584.65 | 8.77% | 3,465,541,196.89 | 8.13% | 0.64% | |
| Fixedassets | 3,178,642,017.84 | 6.37% | 2,561,254,191.55 | 6.01% | 0.36% | |
| Constructioninprogress | 9,236,643,931.68 | 18.52% | 4,291,544,368.52 | 10.07% | 8.45% | |
| Short-termborrowings | 10,990,550,475.78 | 22.04% | 10,332,687,239.63 | 24.25% | -2.21% | |
| Long-termborrowings | 5,964,748,997.54 | 11.96% | 4,890,315,729.90 | 11.48% | 0.48% | |
2.AssetsandLiabilitiesatFairValue
√Applicable□Notapplicable
Unit:RMB
| Item | Beginningamount | Gain/lossonfair-valuechangesintheReportingPeriod | Cumulativefair-valuechangeschargedtoequity | ImpairmentallowancefortheRepo | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Otherchanges | Endingamount |
KonkaGroupCo.,Ltd.AnnualReport2020
| rtingPeriod | ||||||||
| Financialassets | ||||||||
| 1.Tradingfinancialassets(derivativefinancialassetsexcluded) | 61,494,666.97 | 19,089,541.66 | 599,160,000.00 | 61,494,666.97 | 618,249,541.66 | |||
| 4.Otherequityinstrumentinvestment | 21,642,170.36 | -98,878.20 | -98,878.20 | 5,000,001.00 | 1,200,000.00 | 25,343,293.16 | ||
| Subtotaloffinancialassets | 83,136,837.33 | 18,990,663.46 | -98,878.20 | 604,160,001.00 | 62,694,666.97 | 643,592,834.82 | ||
| Other | 1,896,295,999.65 | -244,596.77 | 209,334,863.14 | 143,174,271.82 | 1,962,211,994.20 | |||
| Totaloftheabove | 1,979,432,836.98 | 18,746,066.69 | -98,878.20 | 813,494,864.14 | 205,868,938.79 | 2,605,804,829.02 | ||
| Financialliabilities | 0 | 0 |
Particularsaboutotherchanges:
| Item | Beginningamount | Gain/lossonfair-valuechangesintheReportingPeriod | Cumulativefair-valuechangeschargedtoequity | ImpairmentallowancefortheReportingPeriod | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Otherchanges | Endingamount |
| Other： | 1,896,295,999.65 | -244,596.77 | 209,334,863.14 | 143,174,271.82 | - | 1,962,211,994.20 | ||
| Othernon-currentfinancialassets | 1,753,121,727.83 | -244,596.77 | 125,277,665.70 | 1,878,154,796.76 | ||||
| Receivablesfinancing | 143,174,271.82 | 84,057,197.44 | 143,174,271.82 | 84,057,197.44 |
SignificantchangestothemeasurementattributesofthemajorassetsintheReportingPeriod:
□Yes√No
3.RestrictedAssetRightsasatthePeriod-End
| Item | Endingcarryingvalue(RMB) | Reasonforrestriction |
| Monetaryassets | 1,133,474,067.66 | RMB1,067,872,557.16wassecuritydepositsaspledgeforborrowingorforbankacceptancenotes;RMB37,701,403.94wasdepositedinthefinancialregulationaccount;RMB20,903,555.17wastermdepositswithnoearlywithdrawalallowed;andRMB6,996,551.39wasrestrictedforotherreasons. |
| Tradingfinancialassets | 618,249,541.66 | Structuraldepositsareusedtopledgeloans。 |
KonkaGroupCo.,Ltd.AnnualReport2020
| Notesreceivable | 784,732,739.73 | BankacceptancenotesinthecarryingamountofRMB784,932,739.73wereputinpledgeforcomprehensivefinancingwithrespecttobankacceptancenotes,lettersofcredit,lettersofguarantee,tradefinancing,paperpools,etc. |
| Investmentproperty | 131,321,568.34 | Ascollateralsforguarantees |
| Fixedassets | 768,741,766.12 | Formortgageloan,financeleaseandguarantee |
| Constructioninprogress | 328,756,028.19 | Ascollateralsforguarantees |
| Intangibleassets | 191,106,846.79 | Formortgageloan,financeleaseandguarantee |
| Long-termreceivables | 351,107,041.45 | Ascollateralsforguarantees |
| Total | 4,307,489,599.94 |
VInvestmentsMade
1.TotalInvestmentAmount
√Applicable□Notapplicable
| AmountofReportingPeriod(RMB) | Amountofthesameperiodoflastyear(RMB) | Change(%) |
| 5,893,962,083.15 | 1,357,746,303.50 | 334.10% |
2.MajorEquityInvestmentsMadeintheReportingPeriod
□Applicable√Notapplicable
3.MajorNon-EquityInvestmentsOngoingintheReportingPeriod
√Applicable□Notapplicable
Unit:RMB
| Item | Investmentmethod | Fixedassetsinvestmentornot | Industryinvolved | InputamountintheReportingPeriod | Accumulativeactualinputamountasoftheperiod-end | Capitalresources | Progress | Estimatedrevenues | Accumulativerealizedrevenuesasoftheperiod-end | reasonfornotmeetingthescheduleandexpectedrevenues | Disclosuredate(ifany) | Disclosureindex(ifany) |
| DongguanKonkaIntelligentIndustrialPark | Self-build | Yes | Electronicindustry | 15,455,030.00 | 219,020,000.00 | Self-funded | N/A | 11March2017 | http://www.cninfo.com.cn/new/index | |||
| YibinKonkaIntelligentTerminalHigh-Tech | Self-build | Yes | Electronicindustry | 70,980,707.03 | 164,056,542.25 | Self-funded | N/A | 16December2017 |
KonkaGroupCo.,Ltd.AnnualReport2020
| Park | ||||||||||||
| SuiningKonkaElectronicTechnologyIndustrialPark | Self-build | Yes | Electronicindustry | 122,463,664.30 | 185,785,142.07 | Self-funded | N/A | 17October2018 | ||||
| KonkaChuzhouSmartAppliancesandEquipmentIndustrialPark | Self-build | Yes | Electronicindustry | 290,409,075.00 | 483,201,475.00 | Self-funded | N/A | 25December2018 | ||||
| ChongqingKonkaSemiconductorPhotoelectricIndustrialPark | Self-build | Yes | Electronicindustry | 36,672,823.47 | 103,442,487.27 | Self-funded | N/A | 14June2019 | ||||
| GuxianEnvironmentalProtectionTechnologyTown | Self-build | Yes | Environmentalprotectionindustry | 666,557,122.23 | 666,557,122.23 | Self-funded | N/A | 26November2019 | ||||
| YanchengSemiconductorAssembly&TestBase | Self-build | Yes | Electronicindustry | 800,664.00 | 800,664.00 | Self-funded | N/A | 26November2019 | ||||
| KonkaIntelligentTerminalManufacturingBaseforExport | Self-build | Yes | Electronicindustry | 8,239,200.00 | 8,239,200.00 | Self-funded | N/A | 6June2020 | ||||
| FrestecRefrigerationPark | Self-build | Yes | Electronicindustry | 96,683,675.61 | 96,683,675.61 | Self-funded | N/A | 21July2020 | ||||
| Total | -- | -- | -- | 1,308,261,961.64 | 1,927,786,308.43 | -- | - | - | -- | -- | -- |
Note:YibinKonkaIntelligentTerminalHigh-TechParkhasbeencompletedandiscurrentlybringinginbusiness.WithrespecttoDongguanKonkaIntelligentIndustrialPark,KonkaChuzhou
KonkaGroupCo.,Ltd.AnnualReport2020
SmartAppliancesandEquipmentIndustrialPark,ChongqingKonkaSemiconductorPhotoelectricIndustrialPark,SuiningKonkaElectronicTechnologyIndustrialPark,andFrestecRefrigerationPark,thelandhasbeenobtainedfortheprojectsandtheyarenowunderconstruction.AsforGuxianEnvironmentalProtectionTechnologyTown,thelandhasbeenobtainedfortheprojectanditiswaitingforconstruction.ThemainbodyofYanchengSemiconductorAssembly&TestBasewasputinplace,andinteriordecorationandequipmentpurchaseareongoing.KonkaIntelligentTerminalManufacturingBaseforExporthasstartedproductionasscheduled.
4.FinancialInvestments
(1)SecuritiesInvestments
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(2)InvestmentsinDerivativeFinancialInstruments
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
5.UseofFundsRaised
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.VISaleofMajorAssetsandEquityInterests
1.SaleofMajorAssets
√Applicable□Notapplicable
(1)Transferofsomeofthecloudbigdataoperation-relatedpatents:On23June2020,the29thsessionoftheninthBoardofDirectorsoftheCompanyreviewedandapprovedtheProposalontheTransferofSomeoftheCouldBigData-RelatedPatents,whichallowstheCompanytotransfer68couldbigdataoperation-relatedpatentstoShenzhenKonkaHoldingsGroupCo.,Ltd.atapriceofRMB98.60million.Atpresent,theCompanyhasreceivedthepaymentforthetransferofthesepatentsfromShenzhenKonkaHoldingsGroupCo.,Ltd.,whichhasbeenregisteredatthecompetentauthorityasthenewownerofthesepatents.
(2)TransferofsomeoftheIoT,smarthealthcare,andUHDdisplayterminal-relatedpatents:On17Julyand10August2020,the30thsessionoftheninthBoardofDirectorsandthesecondextraordinarygeneralmeeting2020reviewedandapprovedtheProposalontheTransferofSomeoftheIoT,SmartHealthcareandUHDDisplay-RelatedPatents,whichallowstheCompanytotransfer67couldbigdataoperation-relatedpatentstoShenzhenKonkaHoldingsGroupCo.,Ltd.atapriceofRMB89.60million.Atpresent,theCompanyhasreceivedthepaymentforthetransferofthesepatentsfromShenzhenKonkaHoldingsGroupCo.,Ltd.,whichhasbeenregisteredatthecompetentauthorityasthenewownerofthesepatents.
| Titleofpublicannouncement | Disclosuredate | Disclosurewebsite |
KonkaGroupCo.,Ltd.AnnualReport2020
| AnnouncementontheTransferofSomeoftheCloudBigDataOperation-RelatedPatentsandtheRelated-PartyTransaction | 24June2020 | http://www.cninfo.com.cn/new/index |
| AnnouncementontheTransferofSomeoftheIoT,K-careandUltra-High-DefinitionDisplayTerminal-RelatedPatentsandtheRelated-PartyTransaction | 21July2020 |
2.SaleofMajorEquityInterests
√Applicable□Notapplicable
| Counterparty | Equityinterestssold | Dateofsale | Sellingprice(RMB’0,000) | AmountcontributedbytheequityintereststonetincomeoftheCompanyfromperiod-beginningtodateofsale(RMB’0,000) | EffectofthesaleontheCompany | AmountcontributedbythesaletonetincomeoftheCompanyasapercentageoftheCompany’snetincome(%) | Pricingprinciple | Related-partytransactionornot | RelationshipbetweencounterpartyandtheCompany | Ownershipfullytransferredornot | Executedasscheduledornot,ifnot,statereasonandactionstaken | Disclosuredate | Indextodisclosedinformation |
| ShenzhenKonkaHoldingsGroupCo.,Ltd. | 34%equityofNanjingK-StarTechnologicalIndustrialParkManagementCo.,Ltd. | 28June2020 | 47,098.65 | 0 | OptimizingtheCompany’sallocationofassets,increasingcapitalliquidity | 68.88% | Assessedvalue | Yes | Thesameactualcontroller | Yes | Yes | 6June2020 | http://www.cninfo.com.cn/new/index |
| ShenzhenYuhongRongjiInvestmentCo.,Ltd. | 51%equityofDongguanKonkaInvestmentCo.,Ltd. | 18September2020 | 58,650 | -712.61 | 245.26% | Assessedvalue | No | No | Yes | Yes | 21July2020 | ||
| DangdaiGreenProperty(Xi’an) | 18%equityofChongqingKonka | 25November2020 | 2,700 | -0.13 | 9.95% | Assessedvalue | No | No | Yes | Yes | 16September2020 |
KonkaGroupCo.,Ltd.AnnualReport2020
| Co.,Ltd. | PropertyDevelopmentCo.,Ltd. | |||||||||||
| YuefeiRealEstateDevelopment(Yichun)Co.,Ltd. | 51%equityofChuzhouKangxinHealthIndustrialDevelopmentCo.,Ltd. | 21December2020 | 19,482 | 0.44 | 64.30% | Assessedvalue | No | No | Yes | Yes | 24October2020 |
VIIMajorSubsidiaries
√Applicable□NotapplicableMajorfully/majority-ownedsubsidiariesandthoseminority-ownedsubsidiarieswithanover10%effectontheCompany’snetprofit
Unit:RMB
| Name | RelationshipwiththeCompany | Principalactivity | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
| ShandongEconTechnologyCo.,Ltd.(Consolidated) | Subsidiary | Publicservice-watermanagement | RMB164,000,000 | 13,217,858,947.58 | 1,552,101,380.37 | 3,272,636,835.33 | 352,051,340.40 | 320,737,166.02 |
| ShenzhenWankaidaScienceandTechnologyCo.,Ltd. | Subsidiary | Softwaredesignandtechnologydevelopment | RMB10,000,000 | 90,053,235.21 | 86,907,070.90 | 73,355,880.00 | 71,219,856.76 | 56,209,537.09 |
| ChainKingdomMemoryTechnologiesCo.,Limited | Subsidiary | Industrytrade | USD1,500,000 | 1,223,448,777.49 | 127,984,618.61 | 8,261,027,364.98 | 37,006,046.48 | 31,266,708.21 |
KonkaGroupCo.,Ltd.AnnualReport2020
| HongKongKonkaCo.,Ltd. | Subsidiary | Export&importofelectromechanicalandelectronics | HKD500,000 | 2,692,913,948.54 | 241,589,036.07 | 4,058,498,251.38 | 135,566,078.28 | 121,559,146.43 |
| KonkaElectricalAppliancesInvestment&DevelopmentCo.,Ltd. | Subsidiary | Investmentplatform | HKD500,000 | 529,465,237.62 | 132,791,288.95 | - | 70,406,707.51 | 65,434,592.80 |
| KonkaElectricalAppliancesInternationalTradingCo.,Ltd. | Subsidiary | Export&importofelectromechanicalandelectronics | HKD500,000 | 1,262,482,940.82 | -104,295,236.62 | 1,365,097,512.51 | 43,956,192.18 | 43,956,192.18 |
SubsidiariesobtainedordisposedintheReportingPeriod:
√Applicable□Notapplicable
| Subsidiary | HowsubsidiarywasobtainedordisposedintheReportingPeriod | Effectsonoveralloperationsandoperatingperformance |
| BoxingXingkangEnvironmentalTechnologyCo.,Ltd. | De-registered | Betterallocationofassets |
| AnhuiKonkaDebaoNewMaterialTechnologyCo.,Ltd. | De-registered | |
| Kanghong(Yantai)EnvironmentalTechnologyParkCo.,Ltd. | De-registered | |
| HubeiKangxinlongEnvironmentalProtectionCo.,Ltd. | De-registered | |
| ShenzhenKonkaKangxinTechnologyCo.,Ltd. | De-registered | |
| HenanFrestecSmartEcoElectricalAppliancesCo.,Ltd. | De-registered | |
| YuekangSemiconductorTechnology(Yantai)Co.,Ltd. | De-registered | |
| SichuanKonkaIndustrialNewTownDevelopmentCo.,Ltd. | De-registered | |
| HainanKonkaTechnologyIndustryDevelopmentCo.,Ltd. | De-registered | |
| GuizhouKonkaEnterpriseManagementServiceCo.,Ltd. | De-registered |
KonkaGroupCo.,Ltd.AnnualReport2020
| NanjingKonkaSmartTechnologyCo.,Ltd. | De-registered | |
| ShandongKangxinIndustrialDevelopmentCo.,Ltd. | De-registered | |
| ShenzhenKonkaCommercialSystemTechnologyCo.,Ltd. | De-registered | |
| ShenzhenKonkaLifeElectricApplianceCo.,Ltd. | De-registered | |
| YantaiKonkaIndustrialCo.,Ltd. | De-registered | |
| YoushiKangrongCultureCommunicationCo.,Ltd. | De-registered | |
| WeifangSikangInvestmentOperationCo.,Ltd. | De-registered | |
| ZhongshanKangxinElectronicTechnologyCo.,Ltd. | De-registered | |
| KangshiVirtualTechnology(Yantai)Co.,Ltd. | De-registered | |
| SuiningKonkaSmartTechnologyCo.,Ltd. | Newlyincorporated | BeneficialtothedevelopmentoftheCompany’srelevantbusiness |
| HenanFrestecSmartHomeTechnologyCo.,Ltd. | Newlyincorporated | |
| JiangsuKonkaSmartElectricalAppliancesCo.,Ltd. | Newlyincorporated | |
| KangshiVirtualTechnology(Yantai)Co.,Ltd. | Newlyincorporated | |
| ZhongshanKangxinElectronicTechnologyCo.,Ltd. | Newlyincorporated | |
| ZhongshanKang’aoElectronicCo.,Ltd. | Newlyincorporated | |
| LiaoyangKangshunSmartTechnologyCo.,Ltd. | Newlyincorporated | |
| LiaoyangKangshunRenewableEnergyCo.,Ltd. | Newlyincorporated | |
| NanjingKonkaElectronicsCo.,Ltd. | Newlyincorporated | |
| GaopingKangrunEnvironmentalProtection&WaterCo.,Ltd. | Newlyincorporated | |
| MengchengKangrunAnjianWaterCo.,Ltd. | Newlyincorporated | |
| XixianKangrunXijianWaterEnvironmentDevelopmentCo.,Ltd. | Newlyincorporated | |
| ChongzhouKangrunEnvironmentCo.,Ltd. | Newlyincorporated | |
| Xi’anGaolingKangrunEnvironmentalEngineeringCo.,Ltd. | Newlyincorporated | |
| AnkangKangrunXinhengWaterEnvironmentCo.,Ltd. | Newlyincorporated | |
| LinfenKangrunJinzeWaterSupplyCo.,Ltd. | Newlyincorporated | |
| ChangningKangrunWaterCo.,Ltd. | Newlyincorporated | |
| BokangRenewableResources(Yantai)Co.,Ltd. | Acquired | |
| JiangsuKonkaSpecialMaterialTechnologyCo.,Ltd. | Newlyincorporated | |
| ChongqingKangxingruiScrapedAutomobileRecyclingCo.,Ltd. | Newlyincorporated | |
| KonkaXinyunSemiconductorTechnology | Newlyincorporated |
KonkaGroupCo.,Ltd.AnnualReport2020
| (Yancheng)Co.,Ltd. | ||
| YantaiKangyunPropertyDevelopmentCo.,Ltd. | Newlyincorporated | |
| ChongqingKangleiOptoelectronicTechnologyCo.,Ltd. | Newlyincorporated | |
| YibinKangrunEnvironmentalTechnologyCo.,Ltd. | Newlyincorporated | |
| HenanKangxinPropertyCo.,Ltd. | Newlyincorporated | |
| ShenzhenKangxinPropertyCo.,Ltd. | Newlyincorporated | |
| HenanKanghanPropertyCo.,Ltd. | Newlyincorporated | |
| ChongqingChengdaPropertyCo.,Ltd. | Newlyincorporated | |
| ChongqingChunfuPropertyCo.,Ltd. | Newlyincorporated | |
| ChongqingLanghengPropertyCo.,Ltd. | Newlyincorporated | |
| ChongqingChengdaPropertyCo.,Ltd. | Equitytransfer | BeneficialtothedevelopmentoftheCompany’srelevantbusinessandbringaboutacertainamountofgains |
| ChongqingChunfuPropertyCo.,Ltd. | Equitytransfer | |
| ChongqingLanghengPropertyCo.,Ltd. | Equitytransfer | |
| MorsemiSemiconductorTechnology(HongKong)Limited | Equitytransfer | |
| ChuzhouKangxinHealthIndustryDevelopmentCo.,Ltd. | Equitytransfer | |
| DongguanKonkaInvestmentCo.,Ltd. | Equitytransfer | |
| ChongqingZhengmaoSemiconductorCo.,Ltd. | Equitytransfer | |
| ChongqingKonkaFuzePropertyCo.,Ltd. | Equitytransfer | |
| ChongqingKonkaXingyiPropertyCo.,Ltd. | Equitytransfer | |
| ChongqingKonkaPropertyDevelopmentCo.,Ltd. | Equitytransfer | |
| ChengduKonkaIncubatorManagementCo.,Ltd. | Equitytransfer | |
| ShenzhenKonkaCross-BorderTechnologicalInnovationServiceCo.,Ltd. | Equitytransfer | |
| ShenzhenMorsemiSemiconductorTechnologyCo.,Ltd. | Equitytransfer | |
| ShenzhenKonkaYifangTechnologyCo.,Ltd. | Equitytransfer | |
| E3info(Hainan)TechnologyCo.,Ltd. | Equitytransfer | |
| ZhongshanKang’aoElectronicCo.,Ltd. | Equitytransfer |
Informationaboutmajormajority-andminority-ownedsubsidiaries:
NoneVIIIStructuredBodiesControlledbytheCompany
□Applicable√Notapplicable
KonkaGroupCo.,Ltd.AnnualReport2020
IX.ProspectoftheCompany’sFutureDevelopmentIn2021,theCompanywillfirmlyimplementthe"Technology+Industry+Park"developmentstrategy,anddrivehigh-qualitydevelopmentoftheCompany.TheCompany’sworkplanfor2021isasfollows:
(I)TocontinuetoincreaseinvestmentinR&DanddrivescienceandtechnologyinnovationIn2021,theCompanywillcontinuetoincreaseinvestmentinR&D,focusingoncoretechnologiesinthesemiconductorsectorandtargetingtorealizebreakthroughsinchip,masstransferandothercoretechnologiesandcommercialapplicationandindustrializationofMicroLED.Inaddition,theCompanywillcontinuouslyimproveourstrategiclayoutofintellectualpropertyrights,strengthenourtechnologicaladvantagesin5G,8K,IoT,MicroLED,semiconductormemoryandotherareasandmakesubstantiveeffortstotransform"KonkaElectronics"into"KonkaTechnology."(II)TostepupeffortstoimproveproductqualityAsaproductmanufacturingenterprise,theCompanywillcontinuetopursuethephilosophyofdrivingdevelopmentthroughhigh-qualityandhot-sellingproductsin2021andworkhardtocreateaseriesofhigh-qualityproductsthatareintegratedwithhightechnologies,enablehighgrossmargins,havehighaestheticvaluesandreceivehighpraisefromconsumers.(III)TofurtherimproveriskcontrolmechanismIn2021,theCompanywillcontinuetoimproveourriskcontrolmechanisms.TheCompanywillcontinuetoimproveandoptimizethedecision-makingprocess,implementandimprovethethree-levelriskcontrolmechanismandstrengthentheprocessapproachtothecontrolofreviewsanddecision-makings,therebycreatingeffectiveclosed-loopmechanismsandimprovingdecision-makingefficiency.TheCompanywillalsoimprovetheidentificationofrisksassociatedwithouroperatingprocesses,continuouslyimprovethebasicworkofriskcontrol,andcontinuouslyimproveourworkqualityandefficiencythroughmeanssuchasstrengtheningthecontrolofthefrontendofoperatingprocesses,conductingregularriskreviews,andimplementingspecialinspections.(IV)MainWorksofVariousBusinessDivisions
1.IndustrialProductDivision
(1)TheMultimediaSub-divisionIn2021,theMultimediaSub-divisionwillcontinuetooptimizeitsbusinessandproductstructures,focusoncreatinghigh-qualityproducts,improvegrossmarginsandcontinuouslyimproveoperatingquality.
(2)TheWhiteGoodsSub-divisionIn2021,theWhiteGoodsSub-divisionwillimprovetheoverallcompetitivenessofourwhitegoodsbusinessesbycenteringonthethemeof"diversifybrands,channelsandcategoriesandcreatehigh-endproducts."TheCompanywillalsocontinuetoreviewandre-engineerourorganizational
KonkaGroupCo.,Ltd.AnnualReport2020
structureandsystematicallyre-engineertheorganizationalsystemofourwhitegoodsbusinessestoimprovemanagementefficiencythroughcoordinatedoperationoftheKonkaandFrestecbrands.
(3)TheEnvironmentalProtectionSub-divisionIn2021,theEnvironmentalProtectionSub-divisionwillimprovetheoperatingperformancethroughmultiplemeanssuchasupgradingproductionlinesandimprovingsalescapacity.
(4)TheSemiconductorSub-divisionIn2021,theSemiconductorSub-divisionwillincreaseinvestmentinR&Dofoptoelectronics,memory,third-generationcompoundsemiconductorsandothertechnologiesandaccelerateeffortstomakeandcommercializetechnologicalbreakthroughs.Inaddition,thesemiconductorbusinesswillcompletetheimplementationofYanchengmemorychippackagingandtestingbaseassoonaspossible,anddoagoodjobiniterationandsalesplanningofstorageproducts.
(5)TheMobileInternetSub-divisionIn2021,theMobileInternetSub-divisionwillfine-tuneitsguidelinesofdevelopmentandstrategicplananddrivebusinesstransformationandstrategicbreakthroughs.
(6)ThePCBSub-divisionIn2021,thePCBSub-divisionwillstriveforexpansionandincreaseourpresenceinthePCBindustry,leverageSuiningPCBIndustrialParkasaplatformtodriveproductstructureupgradingandacceleratebusinessgrowth.EffortswillalsobemadetorealizetheoperationofthePCBbusinessunifiedprocurementandsalesplatformassoonaspossible.
2.TechnologyParkDivisionIn2021,theTechnologyParkDivisionwillactivelydrivetheimplementationofthe"Investment+Parks"and"Technology+Parks"modestorealizeintegratedandcoordinateddevelopmentofinvestment,fund,technologyandindustrialparkbusinesses.Activeeffortswillalsobemadetodrivetheimplementationofmajorprojectsfollowingtheprincipleofplanningwithhighrequirements,implementingaccordingtohighstandardsandcompletingwithhighquality,therebycontinuouslyimprovingourcapacityforindustryinvestmentattraction,projectimplementation,post-investmentmanagementandparkoperation.
3.PlatformServiceDivision
(1)TheIndustryTradeBusinessIn2021,theIndustryTradeSub-divisionwillcontinuetodrivethetrade-to-manufacturingtransformation,.Activeeffortswillalsobemadetodevelopnewcustomersandnewbusinesses,continuouslyadjustthebusinessstructureandimproveprofitability.
(2)TheInternetSub-divisionIn2021,theInternetSub-divisionwillfurtheradvancemulti-scenariooperation,deepentheutilizationofwebtrafficthroughtheYijupingstrategy,improveourcapacityforcommercializemulti-scenariotraffic,continuouslyimproveuserstructure,expanduserchannelsanddiversifyuser
KonkaGroupCo.,Ltd.AnnualReport2020
sources.
4.FinancialInvestmentDivision
(1)TheInvestmentSub-divisionIn2021,theInvestmentSub-divisionwillactivelydevelopnewbusinessesthroughinvestmentandacquisition.TheCompanywillalsofurtherincreasethesizeofthefundsfollowingtheprincipleof"abletoattractcapital,abletoinvesttheattractedcapitalandabletowithdrawinvestments,"implementthe"Investment+Parks"modeandstrengthenthecoordinationandsynergywithindustrialparkprojects.
(2)TheVentureCapitalInvestmentSub-divisionIn2021,theVentureCapitalInvestmentSub-divisionwillfurtherimproveitssystemsandmechanism,innovatebusinessmodelsanddevelopnewandprofitablebusinesses.TheSub-divisionwillalsoaccelerateeffortstofosternationalincubators.XCommunicationswiththeInvestmentCommunitysuchasResearches,InquiriesandInterviews
1.DuringtheReportingPeriod
√Applicable□Notapplicable
| Date | Place | Wayofcommunication | Typeofcommunicationparty | Communicationparty | MaindiscussionsandmaterialsprovidedbytheCompany | Indextomaininformationcommunicated | |
| 2Jan.2020 | ConferenceRoomofOfficeBuildingofKonkaR&DBuilding | One-on-onemeeting | Institution | GuoLili(FounderSecurities) | Discussionswereaboutthedevelopment,productionandsalesofMicroLED-relatedproducts,thepurposeoftheacquisitionofFrestecElectricalAppliancesequities,thepurposeoftheexpansiontotheenvironmentalindustryandthespecificsegmentsinvolvedintheenvironmentalindustry.AndnomaterialswereprovidedbytheCompany. | http://www.cninfo.com.cn/new/index | |
| Timesofcommunications | 1 | ||||||
| Numberofinstitutionscommunicatedwith | 1 | ||||||
| Numberofindividualscommunicatedwith | 0 | ||||||
| Numberofothercommunicationparties | 0 | ||||||
| Tip-offsorleakagesofsubstantialsupposedly-confidentialinformationduringcommunications | None | ||||||
KonkaGroupCo.,Ltd.AnnualReport2020
PartVSignificantEvents
IProfitDistributionstoOrdinaryShareholders(intheFormofCashand/orStock)Howtheprofitdistributionpolicy,especiallythecashdividendpolicy,forordinaryshareholderswasformulated,executedorrevisedintheReportingPeriod:
√Applicable□NotapplicableThecashdividendpolicyoftheCompanywasclearlystatedinitsArticlesofAssociation,withspecificandcleardividendstandardsandratios.Therelevantdecision-makingprocedureandmechanismweresound;theindependentdirectorsfaithfullyperformedtheirdutiesandplayedtheirduerole;andthenon-controllinginterestswereabletofullyexpresstheiropinionanddesireandtheirlegalrightsandinterestswerefullyprotected.TheCompanystrictlyfollowedthecashdividendpolicyinitsArticlesofAssociation,andthecashdividendpayoutoftheCompanywasinlinewithitsArticlesofAssociationandtherelevantresolutionoftheShareholders’Meeting.AccordingtotherequirementsoftheListedCompanySupervisionGuidelineNo.3-ListedCompanies’CashDividendissuedbytheCSRC,theCompanyhasrevisedthedividendpayoutpolicyinitsArticlesofAssociation,furtherclarifyingthepriorityandproportionofcashdividendindividendpayouts.Inordertofurthernormalizeitsshareholderreturnmechanism,pushforwardtheestablishmentofascientific,sustainedandstableshareholderreturnmechanism,enhancethetransparencyandoperabilityofdecision-makingforitsdividendpayoutpolicy,andeffectivelyprotectthelegalrightsandinterestsofpublicinvestors,theCompanystrictlyfollowedtheShareholderReturnPlanningforSubsequentThreeYears(2019-2021),whichwasformulatedin2019.
| Specialstatementaboutthecashdividendpolicy | |
| IncompliancewiththeCompany’sArticlesofAssociationandresolutionofgeneralmeeting | Yes |
| Specificandcleardividendstandardandratio | Yes |
| Completedecision-makingprocedureandmechanism | Yes |
| Independentdirectorsfaithfullyperformedtheirdutiesandplayedtheirduerole | Yes |
| Non-controllinginterestsareabletofullyexpresstheiropinionanddesireandtheirlegalrightsandinterestsarefullyprotected | Yes |
| Incaseofadjustingorchangingthecashdividendpolicy,theconditionsandproceduresinvolvedareincompliancewithapplicableregulationsandtransparent | Yes |
Theprofitdistributionstoordinaryshareholders,eitherintheformofcashorstock,inthepastthreeyears(includingtheReportingPeriod)aresummarizedasfollows:
1.DividendPayoutPlanfor2020
KonkaGroupCo.,Ltd.AnnualReport2020
Basedonthetotalsharesof2,407,945,408asoftheendof2020,acashdividendofRMB1.00(taxinclusive)per10shareswasplannedtobedistributedtoalltheshareholders,withthetotaldividendpayoutreachingRMB240,794,540.80.Andtheretainedearningsshouldcarryforwardforfuturepayoutwithoutbonusissuefromcapitalreservesandprofit.
2.DividendPayoutPlanfor2019Basedonthetotalsharesof2,407,945,408asoftheendof2019,acashdividendofRMB0.50(taxinclusive)per10shareswasdistributedtoalltheshareholders,withthetotaldividendpayoutreachingRMB120,397,270.40.Andtheretainedearningsshouldcarryforwardforfuturepayoutwithoutbonusissuefromcapitalreservesandprofit.
2.DividendPayoutPlanfor2018Basedonthetotalsharesof2,407,945,408asoftheendof2018,acashdividendofRMB1.00(taxinclusive)per10shareswasdistributedtoalltheshareholders,withthetotaldividendpayoutreachingRMB240,794,540.80.Andtheretainedearningsshouldcarryforwardforfuturepayoutwithoutbonusissuefromcapitalreservesandprofit.Cashdividendforordinaryshareholdersinthepastthreeyears(includingtheReportingPeriod)
Unit:RMB
| Year | Cashdividends(taxinclusive)(A) | Netprofitattributabletoordinaryshareholdersofthelistedcompanyinconsolidatedstatementsfortheyear(B) | Aas%ofB(%) | Cashdividendsinotherforms(suchassharerepurchase)(C) | Cas%ofB(%) | Totalcashdividends(includingthoseinotherforms)(D) | Das%ofB(%) |
| 2020 | 240,794,540.80 | 477,633,250.14 | 50.41% | 0 | 0.00% | 240,794,540.80 | 50.41% |
| 2019 | 120,397,270.40 | 212,034,210.08 | 56.78% | 0.00 | 0.00% | 120,397,270.40 | 56.78% |
| 2018 | 240,794,540.80 | 411,289,744.68 | 58.55% | 0.00 | 0.00% | 240,794,540.80 | 58.55% |
IndicatebytickmarkwhethertheCompanyfailstoputforwardacashdividendproposalfortheordinaryshareholdersdespitethefactsthattheCompanyhasmadeprofitsintheReportingPeriodandtheprofitsoftheCompanyastheparentdistributabletotheordinaryshareholdersarepositive.
□Applicable√NotapplicableIIFinalDividendPlanfortheReportingPeriod
√Applicable□Notapplicable
| Sharedividendper10sharesfromretainedearnings | 0 |
KonkaGroupCo.,Ltd.AnnualReport2020
| (share) | |
| Cashdividendper10shares(RMB)(taxinclusive) | 1.00 |
| Sharebase(share) | 2,407,945,408 |
| Totalcashdividends(RMB)(taxinclusive) | 240,794,540.80 |
| Cashdividendsinotherways(suchassharerepurchase)(RMB) | 0 |
| Totalcashdividends(includingotherways)(RMB) | 240,794,540.80 |
| Distributableprofits(RMB) | 4,595,371,391.63 |
| Cashdividendsasapercentageoftotalprofitstobedistributed(%) | 100% |
| DetailsofcashdividendfortheReportingPeriod | |
| Theminimumproportionofcashdividendtothisprofitdistributionshouldbe80%whentheCompanydistributedtheprofitsundertheconditionthattheCompanywasinmaturestagewithlargecapitalcost. | |
| Detailsofplanforprofitdistributionorbonusissuefromcapitalreserves | |
| TheauditednetprofitattributabletoownersoftheCompanyastheparentin2020wasRMB477,633,250.14,retainedearningswereRMB4,595,371,391.63.Inaccordancewithrelevantlawsandregulations,provisionsofArticlesofAssociationsanddemandoftheCompanyforsustainabledevelopment,theCompanydidn’twithdrewstatutorysurplusreserveanddiscretionaryreserve,andtheprofitdistributionplanwassupposedtobeasfollows:basedonthetotalsharesof2,407,945,408asoftheendof2020,acashdividendofRMB1.00(taxinclusive)per10shareswasdistributedtoalltheshareholders,withthetotaldividendpayoutexpectedreachingRMB240,794,540.80.Andtheretainedearningsshouldcarryforwardforfuturepayoutwithoutbonusissuefromcapitalreservesandprofit.IfthesharecapitalchangedaftertheBoardofdirectorsreviewedtheprofitdistributionplan,thecashdividendpershareshallbeadjustedintheprincipleoftheunchangedtotaldistributionamount. | |
IIIFulfillmentofCommitments
1.CommitmentsoftheCompany’sActualController,Shareholders,RelatedPartiesandAcquirers,aswellastheCompanyItselfandotherEntitiesFulfilledintheReportingPeriodorOngoingatthePeriod-end
√Applicable□Notapplicable
| Commitment | Promisor | Typeofcommitment | Detailsofcommitment | Dateofcommitmentmaking | Termofcommitment | Fulfillment |
| CommitmentmadeinIPOorrefinanc | OverseasChineseTownEnterprisesCo. | Othercommitment | TheCompanyandothercompaniesunderthecontroloftheCompanyandpersonsactinginconcerthavenosharereductionplanduringtheperiodfromsixmonthsbeforethePrivatePlacementBoardMeeting(28September2018)totheissuancedateofthecommitment.Toavoidtheshort-swing | 28September2018 | 1July2020 | Completed |
KonkaGroupCo.,Ltd.AnnualReport2020
| ing | tradingstipulatedintheSecuritiesLaw,theCompanyandothercompaniesunderthecontroloftheCompanyandpersonsactinginconcertdon’treducethesharesofKonkadirectlyorindirectlyduringtheperiodfromsixmonthsbeforethePrivatePlacementBoardMeeting(28September2018)tosixmonthsafterthecompletionofshareissue. | |||||
| OverseasChineseTownEnterprisesCo. | Othercommitment | IfKonkaGroupanditsmajority-ownedsubsidiariesaresubjecttoanyadministrativepunishmentorinvestigatedduetoanyrealestate-relatedillegalactswithintheReportingPeriodincludingtheundisclosedidleland,thelandspeculation,thepropertyhoardingandthehousingpricegougingetc.,whichhascausedanylossestothelistedcompanyortheinvestor,theCompanywillburdencorrespondingliabilitiesforcompensationaccordingtorelevantlaws,regulationsandprovisionsissuedbythesecuritiesmarketsupervisiondepartment. | 13May2019 | 31December2020 | Completed | |
| OverseasChineseTownEnterprisesCo. | Commitmentsonhorizontalcompetition,related-partytransactionandcapitaloccupation | 1.CompaniesexcludingKonkaGroupandvarioussubsidiariesundertheCompany’scontrol(hereinafterreferredtoas“OtherCompanies”)willmaximallyreduceandavoidanyrelatedtransactionwiththeKonkaGroup,andshallneithertakeadvantageofitsstatusasKonkaGroup’scontrollingshareholdertoseekanyimproperprivilegeandillegitimaterightsuperiorthananythirdpartyonthemarketintheaspectofbusinesscooperationwithKonkaGroup,nortoobtainthepriorityinconcludinganytransactionwithKonkaGroup.2.Ifanynecessarytransactioncannotbeavoided,theCompanyandothercompaniesundertheCompany’scontrolwilllegallysigncorrespondingagreementwithKonkaGroupaccordingtosuchprinciplesasfairness,objectivenessandvaluablecompensation,fulfillvariouslegalproceduresandperformtheirobligationininformationdisclosureandrelevantinternaldecisionmakingandapprovalproceduresaccordingtoapplicablelaws,regulationsandtheArticlesofAssociationsoastoguaranteethefairnessoftherelatedtransactionprice.However,theyshallnottakeadvantageofsuchtransactiontotakeanyactwhichwilldamagethelegitimateinterestsofKonkaGroupandthegroup’sothershareholders.3.TheCompanywillfulfillitsdueobligationsasKonkaGroup’scontrollingshareholderbasedongoodfaith,fullyrespectKonkaGroup’sstatusofanindependentlegalpersonandguaranteeitsindependentmanagementanddecisionmaking.Meanwhile,theCompanyguaranteesthat,itwillattendtheGeneralMeetingaccordingtotheArticlesofAssociation,equallyexercisevariousrightsandburdendueobligations,and | 28March2019 | 31December2020 | Completed |
KonkaGroupCo.,Ltd.AnnualReport2020
| restrainitselffromseekinganyillegitimateinterestsinthenameoftheGroup’scontrollingshareholderandillegallytransferringanycapitalandprofitofKonkaGroupanditscontrolledsubsidiariesbytakingadvantageofanyrelatedtransaction.Inaddition,theCompanycommitsnottodamageanylegitimaterightsandinterestsofKonkaGroupandothershareholders.4.IftheCompanybreakstheabove-mentionedpromiseandguarantee,itshallcompensateanylossessufferedbyKonkaGroupanditsinvestorsforthisreason. | |||||
| OverseasChineseTownEnterprisesCo. | Commitmentsonhorizontalcompetition,related-partytransactionandcapitaloccupation | 1.Asoftheissuancedateoftheletterofcommitment,theCompanyneitherdirectlyorindirectlyinvolvesinanybusinesscompetingwithKonkaGroup’smainbusiness,nordirectlyorindirectlycarryonanybusinesscompetingwithKonkaGroup’smainbusinessbyholdinganysharesorcontrollinganythirdparty.2.IftheexistingbusinessoftheCompanyandcompaniesexcludingKonkaGroupandvarioussubsidiariesundertheCompany’scontrol(hereinafterreferredtoas“OtherCompanies”)competeswiththeKonkaGroup’smainbusinessorothercompanies’businessdevelopmentcompeteswithKonkaGroup’smainbusinessduringtheCompany’sservingastheKonkaGroup’scontrollingshareholder,theCompanyandothercompaniesundertheCompany’scontrolshall(includingbutnotlimitedto)ceasesuchbusinessoperationorintegratesuchcompetingbusinessintoKonkaGrouportransferitotherirrelevantthirdparties,preventingtheCompanyandothercompaniesunderitscontrolfrominvolvinginanybusinesscompetingwithKonkaGroup’smainbusiness.IfanybusinessopportunityobtainedfromanythirdpartysubstantiallyorpossiblycompeteswithKonkaGroup’smainbusiness,theCompanywillimmediatelyinformKonkaGroupofthatandtransfersuchbusinessopportunitytoKonkaGroupunlessoneofthefollowingconditionsismet:(1)suchbusinessopportunityisadministrativelytransferredtoorassignedtotheCompanyandothercompaniesunderitscontrolbythegovernmentbasedonthedirectionalagreementaccordingtoapplicablenationallaws,regulationsandpolicies;or(2)KonkaGroupfailstomeetspecialrequirementspositionedtothebidderortheassigneeincorrespondingprojectbidding,transferandassignmentconditions,buttheCompanyorothercompaniesunderitscontroldoes.3.IfKonkaGroupgivesuptheabove-mentionedbusinessopportunityandtheCompanyandothercompaniesundertheCompany’scontroltakeadvantageofsuchopportunitytoconductanybusinesssubstantiallyorpossiblycompetingwith | 28March2019 | 31December2020 | Completed |
KonkaGroupCo.,Ltd.AnnualReport2020
| theKonkaGroup’smainbusiness,theCompanywillgiveKonkaGroupanyoption.Namely,ifpermittedbyapplicablelawsandregulationsandrelevantprovisionsstatedintheArticlesofAssociation,KonkaGroupshallhavetherighttocompletelyorgraduallypurchaseanyequity,assetsandotherinterestsrelatedtotheabove-mentionedbusinessfromtheCompanyandothercompaniesundertheCompany’scontrol,orKonkaGroupshallownoractuallycontrolcorrespondingassetsorbusinessobtainedbytheCompanyandothercompaniestheCompany’scontrolfromtheabove-mentionedbusinessbymeansofentrustedoperation,leaseorcontractoperationaccordingtoapplicablenationallawsandregulations.Ifthethirdpartyonanequalfootinghastherighttoexecuteandwillexecuteitslegalpreemptiveright,theabove-mentionedcommitmentshallnotapply.However,inthiscase,theCompanyandothercompaniesundertheCompany’scontrolshalltrytheirbesttopromptthethirdpartytogiveupsuchpreemptiveright.4.TheCompanyshallconfirmthateachcommitmentmadehereinconstitutesanindependentexecutablecommitment,andanycommitment’sineffectivenessorterminationwillnotinfluencethevalidityofothercommitments;ifanyoftheabove-mentionedcommitmentsandguaranteesisviolated,theCompanyiswillingtoburdenallresultingeconomiclossessufferedbyKonkaGroup. | |||||
| OverseasChineseTownEnterprisesCo. | Othercommitment | I.KonkaGroup’spersonnelshallbekeptindependent.1.It’srequiredthattheKonkaGroup’sseniormanagersshallexclusivelyworkforandreceivecompensationfromKonkaGroup,andshallnotholdotherpostsotherthandirectorsandsupervisorsinothercompaniesexcludingKonkaGroupandvarioussubsidiariesundertheCompany’scontrol(hereinafterreferredtoas“OtherCompanies”).2.It’sguaranteedthatKonkaGroup’sHRrelationsandlaborrelationsindependentoftheCompanyandothercompaniesundertheCompany’scontrol.3.It’sguaranteedthatallcandidatesrecommendedbytheCompanytoserveasKonkaGroup’sdirectors,supervisorsandseniormanagersaresubjecttolegalprocedures,andtheCompanyshallnotinterfereanydecisiononpersonnelappointmentandremovalmadebyKonkaGroup’sBoardofDirectorsandShareholder’sMeeting.II.KonkaGroup’sfinanceshallbekeptindependent.1.KonkaGroupanditscontrolledsubsidiariesshallestablishtheirindependentfinancialaccountingdepartment,financialcalculationsystemandfinancialmanagementsystem.2.Itshallbeguaranteed | 28March2019 | 31December2020 | Completed |
KonkaGroupCo.,Ltd.AnnualReport2020
KonkaGroupCo.,Ltd.AnnualReport2020
| suchprinciplesasFairness,JusticeandOpenness.Meanwhile,foranysignificantrelatedtransaction,it’srequiredtofulfillcorrespondinginformationdisclosureobligation,completerelevantapprovalproceduresanddiscloserelatedinformationaccordingtoKonkaGroup’sArticlesofAssociationandapplicablelawsandregulations.4.ItisnotallowedtointerfereanymajordecisionmadebytheKonkaGroupandaffecttheindependenceofKonkaGroup’sassets,personnel,finance,institutionandbusinessviaindependentoperationoractinconcertinanywayotherthantheexecutionofshareholder’sright. | |||||
| OverseasChineseTownEnterprisesCo. | Othercommitment | 1.It’snotallowedtointerferetheoperationandmanagementactivitiesoftheCompanyexcessively;2.It’snotallowedtoencroachtheinterestoftheCompany;3.Duringtheperiodfromtheissuancedateofthecommitmenttothecompletion,ifChinaSecuritiesRegulatoryCommission(hereinafterreferredtoas“CSRC”)publishesanynewregulatoryprovisionsonsuchcompensationandrewardmeasuresandtheabove-mentionedcommitmentsarenotinconformitywithsuchprovisions,theCompanywillmakeasupplementarycommitmentthenaccordingtothelatestprovisionsissuedbyCSRC.4.TheCompanyearnestlypromisestoadheretovariouscompensationsandrewardpoliciesestablishedbytheCompanyandmakecorrespondingpromises;iftheCompanybreakssuchpromisesandcauseanylossestotheCompanyortheinvestor,theCompanyiswillingtolegallycompensateanylossessufferedbytheCompanyortheinvestorduetotheviolationagainstsuchcommitment. | 28March2019 | 31December2020 | Completed |
| ShenzhenOverseasChineseTownCapitalInvestmentManagementCo.,Ltd. | Othercommitment | 1.TherestrictedstocktradeperiodofKonkaGroupsubscribedbytheCompanyis36months.Namely,thestocksubscribedbytheCompanyshallnotbetransferredwithin36monthsfromtheendofthedayofthisissue(calculatingfromthedaywhentheadditionalissueofstocksobtainedisregisteredinthenameoftheCompanyandthesamebelow);allstocksderivedfromanystocksobtainedbytheCompanyduringthisissue(includingnewstocksobtainedbydistributingstockdividendsandaddingthecapitalreserveintothecapitalstock)shallalsobesubjecttotheabove-mentionedlock-uparrangement.Aftertheabove-mentionedlock-upperiodexpires,thetransferandtransactionofcorrespondingstocksshallbeperformedaccordingtothetheneffectivelaws,regulationsandvariousrules,provisionsandrequirementsputforwardbyChinaSecuritiesRegulatoryCommission(hereinafterreferredtoas“CSRC”)andShenzhenStockExchange(hereinafterreferred | 28February2019 | 31December2020 | Completed |
KonkaGroupCo.,Ltd.AnnualReport2020
| toas“SSE”).2.Beforethisissue,allstocksheldbytheCompanyandthepersonsactinginconcertfromKonkaGroupshallbelockedupfor12monthsfromtheendofthedayofthisissue.StocksheldbytheCompanyandthepersonsactinginconcertfromKonkaGroupbeforethisissuecorrespondtoadditionalstocksheldinKonkaGroupduetothedistributionofdividendsandtheconversionintosharecapital,whichshallalsobesubjecttotheabove-mentionedagreement. | |||||
| ShenzhenOverseasChineseTownCapitalInvestmentManagementCo.,Ltd. | Othercommitment | I.TheCompanyislegallyestablishedandexistsvalidlyaccordingtoapplicableChineselawsandregulationswithfullcapacityforcivilrightsandcivilconduct,possessescorrespondingqualificationforsubscribingstocksissuedbyKonkaGroupasstipulatedinChineselaws,administrativelawsandregulations,departmentalregulationsandnormativedocuments,andhasobtainedalldueinternalapprovalsorlicensesforsubscribingthisissueofstocks.II.TheCompanyshallnotinvolveinanyofthefollowingsituations:1.theCompanydamagesthelegitimaterightsandinterestsofKonkaGroupanditsshareholdersduringthesubscriptionofstocksfromKonkaGroup;2.theCompanyisencumberedwitharelativelylargeamountofoutstandingdebts;3.theCompanyhasanysevereunlawfulactorisasuspectofanysevereunlawfulactintherecent3years;4.theCompanyhasanyseveredishonestconductonthestockmarketintherecent3years;5.anysituationunderwhichthesubscriptionofthelistedcompany’sstocksisnotallowedaccordingtoapplicablelaws,administrativeregulationsandvariousprovisionsissuedbyCSRC.III.TheCompany,theCompany’sdirectors,supervisorsandseniormanagers(orkeypersonnel)arenotsubjecttoanyadministrativepunishment(exceptthoseobviouslyirrelevanttothestockmarket),criminalpunishmentoranymajorcivilactionrelatedtoanyeconomicdisputesintherecent5years,andanymajorcivilarbitrationrelatedtoanyeconomicdisputesintherecent5yearsisconcluded.IV.Afterthissubscription,anybusinessconductedbytheCompanyshallnotcompetewithorpotentiallycompetewiththatofKonkaGroup.V.Within24monthsbeforeKonkaGroup’sdisclosureofthisstockissueplan,allmajortransactionsbetweentheCompanyandKonkaGroupshallbesubjecttoallnecessarydecision-makingproceduresaccordingtovariousprovisionsgearedtotherelatedtransaction,andcorrespondinginformationisdisclosed.SuchrelatedtransactionisconductedfortheneedofnormalbusinessdevelopmentofKonkaGroupwithoutdamagingtheinterestsofKonkaGroupandother | 28March2019 | 31December2020 | Completed |
KonkaGroupCo.,Ltd.AnnualReport2020
| shareholders.VI.ThissubscriptionmadebytheCompanyshallbaseoncorrespondinganalysisandjudgmentonthestocktrademarket,andtheCompanyhasagoodvisiononKonkaGroup’sdevelopmentprospectandinvestmentvalue.VII.VariousstockssubscribedduringthisissueshallbecompletelyanddirectlyownedbytheCompanywithoutanyentrustmentortrustorothersimilararrangementsbyanymeans.VIII.TheCompany’sfundsforthissubscriptionshallbeitslegalself-ownedfundsorself-raisedfunds,andtheCompanypromisesthat,afterthisissuebyKonkaGroupisapprovedbyCSRCandthenoticeonthestocksubscriptionpaymentissentbyKonkaGroup,theCompanywouldtransferthefullstocksubscriptionpaymentintothedesignatedfundssupervisionbankaccountaccordingtoConditionalNon-publicIssueofStocksSubscriptionAgreementanditssupplementaryagreement.IX.TheCompany’ssoleshareholderisOCTGroupCo.,Ltd.,andactualcontrolleristheState-ownedAssetsSupervisionandAdministrationCommissionoftheStateCouncil.ForanycontributionbytheCompany’sshareholders,anygradedincomeandstructuredarrangementshallneitherbeapplied,noranyleveragefinancingstructureddesignproduct.X.TheCompanywillprovideKonkaGroupwithvariousinformationrelatedtothissubscription,andguaranteethatallprovidedinformationaretrue,correctandcomplete.XI.TheCompanyshallguaranteenottotransferanysubscribedstockwithintherestrictedstocktransferperiodasstipulatedinapplicablelaws,administrativeregulationsandvariousprovisionsissuedbyCSRCfromtheendofthedayofsubscription. | |||||
| ShenzhenOverseasChineseTownCapitalInvestmentManagementCo.,Ltd. | Othercommitment | 1.It’sallowedneithertoconveyanyinteresttootherunitsorindividualsfreeofchargeorinanunfairway,nortodamagetheCompany’sinterestinotherways;2.It’srequiredtorestrainmyposition-relatedconsumptionbehavior;3.It’snotallowedtoconductanyinvestmentandconsumptionactivitiesirrelevanttomyexecutionofdutybyusingtheCompany’sassets;4.TheremunerationsystemestablishedbytheBoardofDirectorsortheremunerationandappraisalcommitteeshallbelinkedupwiththeCompany’simplementationofcompensationandrewardmeasures;5.IftheCompanyexecutestheequity-basedincentives,thevestingconditionsoftheproposedequity-basedincentivesshallcorrespondwiththeCompany’simplementationofcompensationandrewardmeasures;6.FromthedayofissuingtheLetterofCommitmenttotheissue,ifChinaSecuritiesRegulatory | 28March2019 | 31December2020 | Completed |
KonkaGroupCo.,Ltd.AnnualReport2020
| Commission(hereinafterreferredtoas“CSRC”)publishesanynewregulatoryprovisionsonsuchcompensationandrewardmeasuresandtheabove-mentionedcommitmentsarenotinconformitywithsuchprovisions,IwillmakeasupplementarycommitmentthenaccordingtothelatestprovisionsissuedbyCSRC.7.IearnestlypromisetoadheretovariouscompensationandrewardpoliciesestablishedbytheCompanyandmakecorrespondingpromises;ifIbreaksuchpromisesandcauseanylossestotheCompanyortheinvestor,I’mwillingtolegallycompensateanylossessufferedbytheCompanyortheinvestorduetomyviolationagainstsuchcommitment. | |||||
| ShenzhenOverseasChineseTownCapitalInvestmentManagementCo.,Ltd. | Othercommitment | IfKonkaGroupanditsholdingsubsidiariesaresubjecttoanyadministrativepunishmentorinvestigatedduetoanyrealestate-relatedillegalactswithintheReportingPeriodincludingtheundisclosedidleland,thelandspeculation,thepropertyhoardingandthehousingpricegougingetc.,whichhascausedanylossestothelistedcompanyortheinvestor,theCompanywillburdencorrespondingliabilitiesforcompensationaccordingtorelevantlaws,regulationsandprovisionsissuedbythesecuritiesmarketsupervisiondepartment. | 13May2019 | 31December2020 | Completed |
| Thedirectors,supervisorsandseniormanagersofKonkaGroupCo.,Ltd. | Othercommitment | 1.It’sallowedneithertoconveyanyinteresttootherunitsorindividualsfreeofchargeorinanunfairway,nortodamagetheCompany’sinterestinotherways;2.It’srequiredtorestrainmyposition-relatedconsumptionbehavior;3.It’snotallowedtoconductanyinvestmentandconsumptionactivitiesirrelevanttomyexecutionofdutybyusingtheCompany’sassets;4.TheremunerationsystemestablishedbytheBoardofDirectorsortheremunerationandappraisalcommitteeshallbelinkedupwiththeCompany’simplementationofcompensationandrewardmeasures;5.IftheCompanyexecutestheequity-basedincentives,thevestingconditionsoftheproposedequity-basedincentivesshallcorrespondwiththeCompany’simplementationofcompensationandrewardmeasures;6.FromthedayofissuingtheLetterofCommitmenttotheissue,ifChinaSecuritiesRegulatoryCommission(hereinafterreferredtoas“CSRC”)publishesanynewregulatoryprovisionsonsuchcompensationandrewardmeasuresandtheabove-mentionedcommitmentsarenotinconformitywithsuchprovisions,IwillmakeasupplementarycommitmentthenaccordingtothelatestprovisionsissuedbyCSRC.7.IearnestlypromisetoadheretovariouscompensationandrewardpoliciesestablishedbytheCompanyandmakecorrespondingpromises;ifIbreaksuchpromises | 28March2019 | 31December2020 | Completed |
KonkaGroupCo.,Ltd.AnnualReport2020
| andcauseanylossestotheCompanyortheinvestor,I’mwillingtolegallycompensateanylossessufferedbytheCompanyortheinvestorduetomyviolationagainstsuchcommitment. | |||||||
| ThedirectorsandseniormanagersofKonkaGroupCo.,Ltd. | Othercommitment | IfKonkaGroupanditsholdingsubsidiariesaresubjecttoanyadministrativepunishmentorinvestigatedduetoanyrealestate-relatedillegalactswithintheReportingPeriodincludingtheundisclosedidleland,thelandspeculation,thepropertyhoardingandthehousingpricegougingetc.,whichhascausedanylossestothelistedcompanyortheinvestor,theCompanywillburdencorrespondingliabilitiesforcompensationaccordingtorelevantlaws,regulationsandprovisionsissuedbythesecuritiesmarketsupervisiondepartment. | 13May2019 | 31December2020 | Completed | ||
| Fulfillontimeornot | Yes | ||||||
| Specificreasonsforfailingtofulfillcommitmentsontimeandplansfornextstep(ifany) | None | ||||||
2.WheretherehadanearningsforecastforanassetorprojectandtheReportingPeriodwasstillwithintheforecastperiod,explainwhytheforecasthasbeenreachedfortheReportingPeriod.
□Applicable√NotapplicableIVOccupationoftheCompany’sCapitalbytheControllingShareholderorItsRelatedPartiesforNon-OperatingPurposes
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.VExplanationsGivenbytheBoardofDirectors,theSupervisoryBoardandtheIndependentDirectors(ifany)RegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsoftheReportingPeriod
□Applicable√NotapplicableVIYoYChangestoAccountingPolicies,EstimatesandMethods
√Applicable□NotapplicableIn2017,theMinistryofFinanceissuedtherevised"AccountingStandardsforBusinessEnterprisesNo.14-Revenue"(referredtoasthe"NewRevenueStandards").TheCompanystartstoimplementtheabovenewlyrevisedstandardssince1January2020.Inaccordancewiththelinkupprovision,noadjustmentwasmadetoinformationofcomparativeperiod,andtheCompanyretroactivelyadjustedtheretainedearningsofperiod-beginorothercomprehensiveincomebasedonthedifferencebetweenthecurrentstandardsandthenewstandardsonthefirstexecutiondate.VIIRetrospectiveRestatementsduetoCorrectionofMaterialAccountingErrorsintheReportingPeriod
□Applicable√Notapplicable
KonkaGroupCo.,Ltd.AnnualReport2020
NosuchcasesintheReportingPeriod.VIIIYoYChangestotheScopeoftheConsolidatedFinancialStatements
□Applicable√NotapplicableRefertoPartIV-II-2-(6)fordetails.IXEngagementandDisengagementofIndependentAuditorCurrentindependentauditor:
| Nameofthedomesticindependentauditor | ShineWingCertifiedPublicAccountantsLLP |
| TheCompany’spaymenttothedomesticindependentauditor(RMB’0,000) | 330 |
| HowmanyconsecutiveyearsthedomesticindependentauditorhasprovidedauditservicefortheCompany | 2years |
| Namesofthecertifiedpublicaccountantsfromthedomesticindependentauditorwritingsignaturesontheauditor’sreport | GuoDongchao,ZhanMiaoling |
| HowmanyconsecutiveyearsthecertifiedpublicaccountantshaveprovidedauditservicefortheCompany | 2years |
| Nameoftheoverseasindependentauditor(ifany) | N/A |
| TheCompany’spaymenttotheoverseasindependentauditor(RMB’0,000)(ifany) | 0 |
| HowmanyconsecutiveyearstheoverseasindependentauditorhasprovidedauditservicefortheCompany(ifany) | N/A |
| Namesofthecertifiedpublicaccountantsfromtheoverseasindependentauditorwritingsignaturesontheauditor’sreport(ifany) | N/A |
| HowmanyconsecutiveyearsthecertifiedpublicaccountantshaveprovidedauditservicefortheCompany(ifany) | N/A |
IndicatebytickmarkwhethertheindependentauditorwaschangedfortheReportingPeriod
□Yes√NoIndependentauditor,financialadvisororsponsorengagedfortheauditofinternalcontrols:
√Applicable□NotapplicableTheCompanyappointedShineWingCertifiedPublicAccountantsLLPastheinternalcontrolauditorin2020withRMB0.6millionofpaymentfortheinternalcontrolaudit.XPossibilityofListingSuspensionorTerminationafterDisclosureofthisReport
□Applicable√NotapplicableXIInsolvencyandReorganization
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XIIMajorLegalMatters
KonkaGroupCo.,Ltd.AnnualReport2020
√Applicable□Notapplicable
| Generalinformation | Involvedamount(RMB’0,000) | Provision | Progress | Decisionsandeffects | Executionofdecisions | Disclosuredate | Indextodisclosedinformation |
| Asmaturednoteswerefailedtobeaccepted,theCompanyhasfiledalawsuitwiththecourttorequestChinaEnergyElectricFuelCo.,Ltd.,ChinaEnergy(Shanghai)EnterpriseCo.,Ltd..,ShanghaiNengpingindustrialCo.,Ltd.,andShenzhenQianhaiBaoyingFactoringCo.,Ltd.topaythebillandthecorrespondinginteresttotheCompany. | 5,000 | Not | TheCompanyhaswonthecaseandthejudgmentwasineffect. | TheCompanywonthecase.Atpresent,itisintheexecutionstage.Basedontheprincipleofprudence,theCompanyhaswithdrawnrelevantimpairmentprovisionaccordingtoaccountingpolicies. | Thecourthasadoptedpropertypreservation,whicharecurrentlyintheimplementationstage.TheCompanyhasappliedforthecorrespondingshareholdertobetheadditionalrespondent. | 25June2019 | http://www.cninfo.com.cn/new/index |
| Asmaturednoteswerefailedtobeaccepted,theCompanyhasfiledalawsuitwiththecourttorequestShanghaiHuaxinInternationalGroupCo.,Ltd.andTianjinInternationalTradePetrochemicalCo.,Ltd.topaythebillandthecorrespondinginteresttotheCompany. | 5,000 | Not | TheCompanyhaswonthecaseandthejudgmentwasineffect. | TheCompanywonthecase.Atpresent,itisintheexecutionstage.Basedontheprincipleofprudence,theCompanyhaswithdrawnrelevantimpairmentprovisionaccordingtoaccountingpolicies. | Thecourthasadoptedpropertypreservation,whicharecurrentlyintheimplementationstage. | 25June2019 | |
| Asmaturednoteswerefailed | 15,000 | Not | The | TheCompany | Thecourthas | 25 |
KonkaGroupCo.,Ltd.AnnualReport2020
| tobeaccepted,theCompanyhasfiledalawsuitwiththecourttorequestShanghaiHuaxinInternationalGroupCo.,Ltd.QingdaoBondedZhongsheInternationalTradingCo.,Ltd.andShenzhenQianhaiBenniuAgriculturalTechnologyCo.,Ltd.topaythebillandthecorrespondinginteresttotheCompany. | Companyhaswonthecaseandthejudgmentwasineffect. | wonthecase.Atpresent,itisintheexecutionstage.Basedontheprincipleofprudence,theCompanyhaswithdrawnrelevantimpairmentprovisionaccordingtoaccountingpolicies. | adoptedpropertypreservation,whicharecurrentlyintheimplementationstage. | June2019 | ||
| Asmaturednoteswerefailedtobeaccepted,KonkaFactoringhasfiledalawsuitwiththecourttorequestTahoeGroupCo.,Ltd.,FuzhouTaijiaEnterpriseCo.,Ltd.,andXiamenLianchuangMicroelectronicsCo.,Ltd.topaythebillandthecorrespondinginteresttoKonkaFactoring. | 5,067.67 | Not | Thecourthasadoptedpropertypreservation,andthecaseisatthetrialstage. | Thecaseisundertrialwithnoeffectivejudgmentyet.Basedontheprincipleofprudence,theCompanyhaswithdrawnrelevantimpairmentprovisionaccordingtoaccountingpolicies. | Thecourthasadoptedpropertypreservation,andthecaseisundertrialwithnoeffectivejudgmentyet. | 25June2019 |
| Asmaturednoteswerefailedtobeaccepted,theCompanyhasfiledalawsuitwiththecourttorequestHefeiHuajunTradingCo.,Ltd.andWuhanJialianAgriculturalTechnologyDevelopmentCo.,Ltd.topaythebillandthecorrespondinginteresttotheCompany. | 7,830.07 | Not | TheCompanyhaswonthecaseandthejudgmentwasineffect. | TheCompanywonthecase.Atpresent,itisintheexecutionstage.Basedontheprincipleofprudence,theCompanyhaswithdrawnrelevant | Thecourthasadoptedpropertypreservation,whicharecurrentlyintheimplementationstage. | 25June2019 |
KonkaGroupCo.,Ltd.AnnualReport2020
| impairmentprovisionaccordingtoaccountingpolicies. | ||||
| ThecustomerofHongKongKonka,H-BUSTERSAOPAULOINDUSTRIAECOMERCIOS.A(Brazil)wasinsolvent,andobtainedtheapprovalofthejudicialreorganizationapplicationofCotiaThirdCivilCourtoftheCourtofSaoPaulo,BrazilinMay2013.AsthecreditorofH-BUSTER,HongKongKonkafiledthedebtdeclarationdocuments,andinAugust2014,theamountconfirmedofdebtwasUSD2.78million. | 1,939.38 | Not | ThecourtsupportedtheobjectionsofsomecreditorstothereorganizationplananddeclaredHBbankrupt.Atpresent,thebankruptcyproceedingsareunderway. |
| Bankruptcyproceedingsareunderway | 25June2019 | |||||
| DuetotheJiangxiXinxinJian’anEngineeringCo.,Ltd.(hereinafterreferredtoasthe“JiangxiXinxin”),JiangxiShanshiTechnologyDevelopmentCo.,Ltd.(hereinafterreferredtoasthe“JiangxiShanshi”),JiangxiZhongyiDecorationMaterialsCo.,Ltd.(hereinafterreferredtoasthe“JiangxiZhongyi”)failedtorepaytheloananditsinterest | 31,375.80 | Not | Thecaseisinthesecondinstance. | ThecorrespondingliabilityofriskassumedbytheCompany'scontrolledcompaniesinvolvedinthecaseiscontrollable.Otherdefendantsexclusiveof | Suitpending | 25June2019 |
KonkaGroupCo.,Ltd.AnnualReport2020
| ofChinaGreatWallAMCJiangxiBranch(hereinafterreferredtoasthe“GreatWallJiangxiBranch”),theGreatWallJiangxiBranchsuedtothecourt,andrequiredJiangxiXinxin,JiangxiShanshi,JiangxiZhongyitorepayRMB300millionwithRMB108,000liquidateddamages,andRMB13.65millionofinterest.Meanwhile,9guarantorsincludingJiangxiKonka,XinfengMicrocrystallineandNanocrystalarerequiredtoundertakejointliabilityguaranty.ThejudgmentoffirstinstancewasrequiredJiangxiXinxin,JiangxiZhongyiandJiangxiShanshishallrepaytheprincipal,interestandliquidateddamagestoGreatWallJiangxiBranchandtheguarantorsbearthejointliabilityforsatisfactiontothedebts.Thedefendantshaveappealedagainstthefirstinstancejudgment.Sofar,thecasehasnotyetbeenheardincourt. | thecontrolledcompaniesoftheCompanyaresolvent,andatthesametime,theCompanyhasoutstandingpaymentstotheotherdefendantsinthiscase.TheaboveamountcanbeoffsetagainsttheCompany’sdebtobligationsinthefuture. | |||||
| Duetothedisputeofsalescontract,WumartChainCo.,Ltd.suedtheBeijingBranchofWumarttothecourtofShijingshanDistrictofBeijing,andrequestedtheBeijingBranchtoreturntheprepaymentofgoods. | 2,051.65 | Not | Thecaseisunderretrial. | Thecaseispendingretrial.Basedontheprincipleofprudence,theCompanyhaswithdrawnrelevantimpairmentprovisionaccordingto | Suitpending | 25June2019 |
KonkaGroupCo.,Ltd.AnnualReport2020
| accountingpolicies. | ||||||
| Duetodisputearisenfromalogisticscontract,theCompany’ssubsidiaryAnhuiKonkafiledalawsuittorequestthefreightforwarderShanghaiTriangleLinkLogisticsCo.,Ltd.ShenzhenBranchtomakecompensation. | 3,796.60 | Not | Thecaseisintrialofsecondinstance. | Allofourdemandswerebasicallysupportedbythecourtoffirstinstance.Propertypreservationmeasureswereadopted. | Thecaseisintrialofsecondinstance. | 19September2020 |
| Duetodisputearisenfromanadvertisingcontract,theCompany’ssubsidiaryE2infofiledalawsuitwithNanshanDistrictCourtofShenzhenMunicipalitytorequestTansuoMediatopaytheprincipaldueandliquidateddamages. | 758.11 | Not | Thecaseisintheexecutionstage. | Judgmentoffirstinstancehascomeintoeffectandisbeingexecuted.Basedontheprincipleofprudence,theCompanyhasmadecorrespondingprovisionforimpairmentaccordingtoaccountingpolicies. | Propertypreservationmeasuresaretakenbythecourtandunderexecution. | 19September2020 |
| Duetodisputearisenformasalescontract,theCompany’ssubsidiaryKonkaHuanjiafiledalawsuittorequestDalianJinshundaMaterialRecyclingCo.,Ltd.,HuanjiaGroup,WangBingde,ZhangXueyin,WangRenpingtoreturntheadvancepaymentandpayliquidateddamages. | 9,383.08 | Not | Propertypreservationbeforelitigationwascompleted.Thecaseisinthestageofpublic | Thecaseisinthestageofpublicannouncementandservice.Basedontheprincipleofprudence,theCompanyhasmadecorrespondingprovisionforimpairmentaccordingto | Thecaseisundertrial. | 19September2020 |
KonkaGroupCo.,Ltd.AnnualReport2020
| announcementandservice. | accountingpolicies. | |||||
| Duetodisputearisenformasalescontract,theCompany’ssubsidiaryKonkaHuanjiafiledalawsuittorequestDalianXinjieRenewableResourcesCo.,Ltd.,HuanjiaGroup,WangBingde,ZhangXueyin,WangRenpingtoreturntheadvancepaymentandpayliquidateddamages. | 9,383.08 | Not | Propertypreservationbeforelitigationwascompleted.Thecaseisinthestageofpublicannouncementandservice. | Thecaseisinthestageofpublicannouncementandservice.Basedontheprincipleofprudence,theCompanyhasmadecorrespondingprovisionforimpairmentaccordingtoaccountingpolicies. | Thecaseisundertrial. | 19September2020 |
| Duetodisputearisenfromaloancontract,theCompanyfiledalawsuittothecourttorequestChongqingQingjiaElectronicsCo.,Ltd.torepaytheloanandinterest. | 1,035.71 | Not | TheCompanywonthecaseintrialoffirstinstance. | Judgmentoffirstinstancewasmade.Atpresent,FinanceDept.recordstheoriginalvaluewithoutimpairment. | Judgmentoffirstinstancewasmade. | 19September2020 |
| Duetocontractdispute,theCompany’ssubsidiaryShenzhenNianhuaappliedforarbitrationtorequesttherespondentFangXianglongandJiangYantomakecompensationforcorrespondingannualprofitandfundpossessioncost. | 2,045.16 | Not | TheCompanyhaswonthecaseandthejudgmentwasineffect. | TheCompanywonthecaseandexecutionisinprocess. | Executionisinprocess. | 19September2020 |
| Duetodisputearisenforma | 2,307.90 | Not | The | Thecaseisin | Thecaseis | 19 |
KonkaGroupCo.,Ltd.AnnualReport2020
| salescontract,theCompany’ssubsidiaryKonkaHuanjiafiledalawsuittorequestLiantianxingRenewableResourcesCo.,Ltd.,HuanjiaGroup,WangBingde,ZhangXueyin,WangRenpingtoreturntheadvancepaymentandpayliquidateddamages. | caseisinthestageofpublicannouncementandservice. | thestageofpublicannouncementandservice.Basedontheprincipleofprudence,theCompanyhasmadecorrespondingprovisionforimpairmentaccordingtoaccountingpolicies. | undertrial. | September2020 | ||
| Duetodisputearisenformasalescontract,theCompany’ssubsidiaryKonkaHuanjiafiledalawsuittorequestHuanjiaMingtai(Dalian)RenewableResourcesCo.,Ltd.,HuanjiaGroup,WangBingde,ZhangXueyin,WangRenpingtoreturntheadvancepaymentandpayliquidateddamages. | 3,302.64 | Not | Thecaseisinthestageofpublicannouncementandservice. | Thecaseisinthestageofpublicannouncementandservice.Basedontheprincipleofprudence,theCompanyhasmadecorrespondingprovisionforimpairmentaccordingtoaccountingpolicies. | Thecaseisundertrial. | 19September2020 |
| Duetodisputearisenformasalescontract,theCompany’ssubsidiaryKonkaHuanjiafiledalawsuittorequestLankaoShunjiaRenewableResourcesRecyclingCo.,Ltd.,HuanjiaGroup,WangBingde,ZhangXueyin,WangRenpingtoreturntheadvancepaymentandpayliquidateddamages. | 3,358.80 | Not | Thecaseisinthestageofpublicannouncementandservice. | Thecaseisinthestageofpublicannouncementandservice.Basedontheprincipleofprudence,theCompanyhasmadecorrespondingprovisionforimpairment | Thecaseisundertrial. | 19September2020 |
KonkaGroupCo.,Ltd.AnnualReport2020
| accordingtoaccountingpolicies. | ||||||
| Duetodisputearisenformasalescontract,theCompany’ssubsidiaryKonkaHuanjiafiledalawsuittorequestHenanShunhenghuiRenewableResourcesRecyclingCo.,Ltd.,HuanjiaGroup,WangBingde,ZhangXueyin,WangRenpingtoreturntheadvancepaymentandpayliquidateddamages. | 3,337.29 | Not | Thecaseisinthestageofpublicannouncementandservice. | Thecaseisinthestageofpublicannouncementandservice.Basedontheprincipleofprudence,theCompanyhasmadecorrespondingprovisionforimpairmentaccordingtoaccountingpolicies. | Thecaseisundertrial. | 19September2020 |
| Duetodisputearisenformasalescontract,theCompany’ssubsidiaryKonkaHuanjiafiledalawsuittorequestHenanJiaxinRenewableResourcesRecyclingCo.,Ltd.,HuanjiaGroup,WangBingde,ZhangXueyin,WangRenpingtoreturntheadvancepaymentandpayliquidateddamages. | 3,358.09 | Not | Thecaseisinthestageofpublicannouncementandservice. | Thecaseisinthestageofpublicannouncementandservice.Basedontheprincipleofprudence,theCompanyhasmadecorrespondingprovisionforimpairmentaccordingtoaccountingpolicies. | Thecaseisundertrial. | 19September2020 |
| Duetodisputearisenformasalescontract,theCompany’ssubsidiaryKonkaHuanjiafiledalawsuittorequestHenanShengxiangRenewableResourcesRecyclingCo.,Ltd.,HuanjiaGroup,WangBingde,Zhang | 2,922 | Not | Thecaseisinthestageofpublicannouncementand | Thecaseisinthestageofpublicannouncementandservice.Basedontheprincipleofprudence,the | Thecaseisundertrial. | 19September2020 |
KonkaGroupCo.,Ltd.AnnualReport2020
| Xueyin,WangRenpingtoreturntheadvancepaymentandpayliquidateddamages. | service. | Companyhasmadecorrespondingprovisionforimpairmentaccordingtoaccountingpolicies. | ||||
| Duetodisputearisenformasalescontract,theCompany’ssubsidiaryKonkaHuanjiafiledalawsuittorequestDalianGuangxinEnvironmentalProtectionEquipmentTechnologyDevelopmentCo.,Ltd.toreturnpaymentforequipmentandpayliquidateddamages. | 3,137.20 | Not | Trialoffirstinstancewasheld,pendingjudgment. | Thecaseisintrialoffirstinstance,pendingjudgment.Basedontheprincipleofprudence,theCompanyhasmadecorrespondingprovisionforimpairmentaccordingtoaccountingpolicies. | Thecaseisundertrial. | 19September2020 |
| Asmaturednoteswerefailedtobeaccepted,theCompanyfiledalawsuitwiththecourttorequestWuhanJialianAgriculturalTechnologyDevelopmentCo.,Ltd.topaythebillandcorrespondinginteresttotheCompany. | 20,000 | Not | Trialoffirstinstancewasheld,pendingjudgment. | Thecaseisintrialoffirstinstance.Basedontheprincipleofprudence,theCompanyhasmadecorrespondingprovisionforimpairmentaccordingtoaccountingpolicies. | Thecaseisundertrial. | 19September2020 |
| Duetopaymentdispute,theCompany’ssubsidiaryHongKongKonkaappliedforanarbitrationtoShenzhenCourtofInternationalArbitrationto | 1,023.51 | Not | TheCompanyhaswonthe | Arbitrationaward.TheCompanyhaswonthecase.Basedonthe | Arbitrationaward. | 19September2020 |
KonkaGroupCo.,Ltd.AnnualReport2020
| requesttherespondentMakenaElectronic(HongKong)topayforgoodsandliquidateddamages. | case. | principleofprudence,theCompanyhasmadecorrespondingprovisionforimpairmentaccordingtoaccountingpolicies. | ||||
| Duetopaymentdispute,theCompany’ssubsidiaryAnhuiElectricalApplianceappliedforanarbitrationtoChuzhouArbitrationCommissiontorequesttherespondentMakenaElectronic(Shenzhen)tomakeguarantee. | 2,141.50 | Not | Arbitrationhasbeenawarded. | Arbitrationaward.Thearbitrationtribunalbasicallysupportsallourdemands. | Arbitrationaward. | 19September2020 |
| Duetocontractdispute,theCompanyfiledalawsuitwithZhengzhouIntermediatePeople’sCourttorequestHenanRadioandTelevisionNetworkCo.,Ltd.topickupgoodsandmakepaymentandliquidateddamagesaccordingtothecontract. | 3,904.90 | Not | Thecasewassettledthroughmediationandthemediationdocumenthascomeintoeffect. | Thecasewassettledthroughmediationandmediationdocumentisbeingexecuted.Basedontheprincipleofprudence,theCompanyhasmadecorrespondingprovisionforimpairmentaccordingtoaccountingpolicies. | Propertypreservationmeasuresweretakenbythecourt,andmediationdocumentisbeingexecuted. | 19September2020 |
| Duetocondominiumownershipdispute,theowners’committeeofJingyuanBuildingfiledalawsuittorequestZhongfangGroupNanfangRealEstate | 598.56 | Not | Thecaseisintrialofsecondinstanc | Trialofsecondinstancewasheld,pendingjudgment. | Thecaseisundertrial. | 19September2020 |
KonkaGroupCo.,Ltd.AnnualReport2020
Co.,Ltd.tomakesupplementarypaymentofmaintenancefund.ZhongfangGroupNanfangRealEstateCo.,Ltd.submittedadefenseonthegroundthattheCompanyjointlydevelopedJingyuanBuilding,andtheCompanywasfiledasthedefendant.
| e. | ||||||
| Duetodisputearisenfromalogisticscontract,AludaLogisticsfiledalawsuitwithNanqiaoPeople’sCourtofChuzhoutorequesttheCompany’ssubsidiaryAnhuiTongchuantoreturntheperformancebond,paytransportationcostsandinterestsincurred,andbearthelitigationcosts. | 1,282.80 | Not | Judgmentofsecondinstancehascomeintoeffect. | Judgmentofsecondinstancewasmade,andtheCompanypartlylostthecase. | Judgmentofsecondinstancewasexecutedandtopetitionforretrial. | 19September2020 |
| Duetodisputearisenfromasalescontract,ZhaoYonghongfiledalawsuitwiththecourttorequesttheCompany’sKonkaHuanjiatopayforgoods. | 805.74 | Not | Judgmentofsecondinstancewasmade. | Judgmentoffirstinstancewasheldintrialofsecondinstance. | Judgmentofsecondinstancewasmadeandretrialisinprocess. | 19September2020 |
XIIIPunishmentsandRectifications
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XIVCreditQualityoftheCompanyaswellasItsControllingShareholderandActualController
□Applicable√NotapplicableXVEquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XVIMajorRelated-PartyTransactions
1.ContinuingRelated-PartyTransactions
√Applicable□Notapplicable
KonkaGroupCo.,Ltd.AnnualReport2020
| Relatedparty | RelationshipwiththeCompany | Typeoftransaction | Specifictransaction | Pricingprinciple | Transactionprice | Totalvalue(RMB’0,000) | As%oftotalvalueofallsame-typetransactions | Approvedtransactionline(RMB’0,000) | Overtheapprovedlineornot | Methodofsettlement | Obtainablemarketpriceforsame-typetransactions | Disclosuredate | Indextodisclosedinformation | |
| OCTEnterprisesCo.,Ltdanditssubsidiaries | Underthesameactualcontroller | Purchaseofcommoditiesandservices | Purchaseofmaterials | Negotiatedprice | Marketprice | 5,497.07 | 0.54 | 5,500 | Not | Cash | N/A | 22April2020 | http://www.cninfo.com.cn/new/index | |
| OCTEnterprisesCo.,Ltdanditssubsidiaries | Underthesameactualcontroller | Salesofgoodsandservices | SalesofLCD | Negotiatedprice | Marketprice | 1,852.41 | 0.13 | 20,000 | Not | Cash | N/A | 22April2020 | ||
| Total | -- | -- | 7,349.48 | -- | 25,500 | -- | -- | -- | -- | -- | ||||
| Large-amountsalesreturnindetail | N/A | |||||||||||||
| GivetheactualsituationintheReportingPeriod(ifany)whereanestimatehadbeenmadeforthetotalvalueofcontinuingrelated-partytransactionsbytypetooccurintheReportingPeriod | TheCompanyhaspublishedtheForecastingPublicNoticeonRoutineRelated-partyTransactionforY2020onSecuritiesTimes,ShanghaiSecuritiesNews,ChinaSecuritiesJournalaswellastheInternetwebsitedesignatedbyCSRChttp://www.cninfo.com.cn/new/indexon22April2020.TheCompanyheldthe36thMeetingofthe9thBoardofDirectorson15December2020,onwhichtheProposalonIncreaseinLimitof2020RoutineRelated-partyTransactionforY2020wasreviewedandapproved.TheCompanywasagreedtoincreasethequotaofroutinerelated-partytransactionsfor2020regardingpurchasingservicesandproductsfromOCTEnterprisesCo.,LtdanditssubsidiarieswithanincreaseofRMB25million.DuringtheReportingPeriod,thebasisforpricing,transactionprice,transactionamountandsettlementmethodsofrawmaterialspurchasedbytheCompanywerebasicallyinaccordancewiththeforecast.ThetotalamountwasRMB73.4948million. | |||||||||||||
| Reasonforanysignificantdifferencebetweenthetransactionpriceandthemarketreferenceprice | N/A | |||||||||||||
2.Related-PartyTransactionsRegardingPurchaseorSalesofAssetsorEquityInterests
√Applicable□Notapplicable
KonkaGroupCo.,Ltd.AnnualReport2020
RefertoPartV-5.OtherMajorRelated-PartyTransactionsfordetails.
3.RelatedTransactionsRegardingJointInvestmentsinThirdParties
√Applicable□NotapplicableRefertoPartV-5.OtherMajorRelated-PartyTransactionsfordetails.
4.CreditsandLiabilitieswithRelatedParties
√Applicable□NotapplicableIndicatebytickmarkwhethertherewereanycreditsandliabilitieswithrelatedpartiesfornon-operatingpurposes.
√Yes□NoCreditsreceivablewithrelatedparties:
| Relatedparty | Relatedrelationship | Formingreason | Whetherthereisoccupationonnon-operatingcapitalornot | Beginningbalance(RMB’0,000) | IncreasedintheReportingPeriod(RMB’0,000) | RecoveredintheReportingPeriod(RMB’0,000) | Interestrate | InterestintheReportingPeriod(RMB’0,000) | Endingbalance(RMB’0,000) |
| YibinOCTSanjiangPropertiesCo.,Ltd. | Subsidiaryofcontrollingshareholder | Demandofbusinessdevelopment | No | 10,000 | 0 | 2,500 | 5.70% | 572.77 | 7,500.00 |
| ChuzhouKangjinHealthIndustryDevelopmentCo.,Ltd. | Subsidiaryofcontrollingshareholder | Demandofbusinessdevelopment | No | 5,880 | 11,270.00 | 1,065.26 | 7.00% | 993.00 | 16,084.74 |
| EffectsofcreditswithrelatedpartiesontheCompany’soperatingresultsandfinancialconditions | NoeffecttothenormaloperationoftheCompany.OthershareholdersofYibinOCTSanjiangPropertiesCo.,Ltd.andChuzhouKangjinHealthIndustryDevelopmentCo.,Ltd.offerfinancialassistanceunderthesameconditionsinaccordancetotheirshareholdingratio. | ||||||||
Liabilitiespayablewithrelatedparties:
| Relatedparty | Relatedrelationship | Formingreason | Beginningbalance(RMB’0,000) | IncreasedintheReportingPeriod(RMB’0,0 | RecoveredintheReportingPeriod(RMB’0,0 | Interestrate | InterestintheReportingPeriod(RMB’0,0 | Endingbalance(RMB’0,000) |
KonkaGroupCo.,Ltd.AnnualReport2020
| 00) | 00) | 00) | ||||||
| OCTEnterprisesCo.,Ltd. | Controllingshareholder | TheCompanyappliesentrustedloantoit | 150,000.00 | 150,000.00 | 4.06% | 2,926.58 | - | |
| 90,000.00 | 90,000.00 | 3.93% | 2,359.22 | - | ||||
| 93,406.00 | 93,406.00 | 4.14% | 1,904.75 | - | ||||
| 50,000.00 | 47,594.00 | 4.56% | 226.85 | 2,406.00 | ||||
| 50,000.00 | 41,300.00 | 4.56% | 269.58 | 8,700.00 | ||||
| 60,000.00 | 60,000.00 | 4.56% | 240.22 | - | ||||
| 50,000.00 | 4.22% | 146.53 | 50,000.00 | |||||
| EffectsofliabilitieswithrelatedpartiesontheCompany’soperatingresultsandfinancialconditions | TheCompanyappliesentrustedloanfromOCTEnterprisesCo.,Ltd.whichmeetstheneedsofthecompany'sexistingbusinessdevelopmentandreducesthefinancingcost. | |||||||
5.OtherMajorRelated-PartyTransactions
√Applicable□Notapplicable
(1)Transferring34%equityofNanjingK-StarScienceandTechnologyIndustryParkOperationandManagementCo.,Ltd.:AttheTwenty-EighthMeetingoftheNinthSessionoftheBoardofDirectorson5June2020andtheFirstExtraordinaryGeneralMeetingof2020on22June2020,theCompanyconsideredandapprovedtheProposalontheTransferof34%EquityofNanjingK-StarScienceandTechnologyIndustryParkOperationandManagementCo.,Ltd..Accordingtothedecision,theCompanywouldtransfertoShenzhenKonkaHoldingsGroupCo.,Ltd.34%equityofNanjingK-Staritheldthroughnon-disclosureagreementatapriceofRMB470,986,500.Asofnow,theCompanyhasreceivedallequitytransferpaymentsandshareholders’borrowings,andtheadministrativeproceduresforchangesinthebusinessregistrationofNanjingK-StarScienceandTechnologyIndustryParkOperationandManagementCo.,Ltd.havebeencompleted.
(2)Transferringsomepatentsinrelationtocloudbigdataoperations:AttheTwenty-NinthMeetingoftheNinthSessionoftheBoardofDirectorson23June2020,theCompanyconsideredandapprovedtheProposalontheTransferofSomePatentsinRelationtoCloudBigData.Accordingtothedecision,theCompanywouldtransfertoShenzhenKonkaHoldingsGroupCo.,Ltd.68patentsinrelationtocloudbigdataatapriceofRMB98,600,000.Asofnow,theCompanyhasreceivedthepatenttransferpaymentfromShenzhenKonkaHoldingsGroupCo.,Ltd.,andtheadministrativeproceduresforchangesintheregistrationofpatenteehavebeencompleted.
(3)InitiatingtheestablishmentofWuzhenJiayuDigitalEconomyIndustryFund:AttheTwenty-FourthMeetingoftheNinthSessionoftheBoardofDirectorson27March2020andtheAnnualGeneralMeetingof2019on18May2020,theCompanyconsideredandapprovedtheProposalonInitiatingtheEstablishmentofWuzhenJiayuDigitalEconomyIndustryFund.Accordingtothedecision,theCompany(oritswholly-ownedsubsidiary)wouldcontributeacapital
KonkaGroupCo.,Ltd.AnnualReport2020
ofnomorethanRMB200millionasalimitedpartnertoinitiatetheestablishmentofWuzhenJiayuDigitalEconomyIndustryFundofnomorethanRMB500milliontogetherwiththecooperator.Asofnow,businessregistrationandfilingwithAssetManagementAssociationofChinafortheFundhasbeencompleted.
(4)Signingwiththesubscriptionobjectaterminationcontractforthesharesubscriptionagreementwithconditionalentryintoforce:AttheTwenty-SeventhMeetingoftheNinthSessionoftheBoardofDirectorsandtheEighthMeetingoftheNinthSessionoftheBoardofSupervisorson22May2020,theCompanyconsideredandapprovedtheProposalontheCompanySigningwiththeSubscriptionObjecta‘TerminationContractfortheShareSubscriptionAgreementwithConditionalEntryintoForce’.ItwasagreedthattheCompanywouldsigntheTerminationContractfortheShareSubscriptionAgreementwithConditionalEntryintoForcewithShenzhenOverseasChineseTownCapitalInvestmentManagementCo.,Ltd.(hereinafterreferredtoas“OCTCapital”),awholly-ownedsubsidiaryofOCTGroup.Asofnow,theCompanyhasenteredintotheTerminationContractfortheShareSubscriptionAgreementwithConditionalEntryintoForce,specifyingtheterminationoftheAgreementfortheSubscriptionofNon-PublicOfferingofStockwithConditionalEntryintoForcesignedbyandbetweentheCompanyandOCTCapitalon28March2019.
(5)ProvidingadvertisingservicestoOCTGroup:AttheTwenty-EighthMeetingoftheNinthSessionoftheBoardofDirectorson5June2020,theCompanyconsideredandapprovedtheProposalonProvidingAdvertisingServicestoOCTGroup.Accordingtothedecision,theCompanywouldprovideOCTGroupwithadvertisingservicesatintelligentterminalswithaservicetransactionpriceofRMB100million.
(6)TransferringsomepatentsinrelationtoIOT,smarthealthandUHDdisplayterminals:On17July2020and10August2020,ATthe30
th
Meetingofthe9
thBoardofDirectorsandthe2
ndExtraordinaryGeneralMeetingof2020onJuly17,2020and10August2020,theCompanyconsideredandapprovedtheProposalontheTransferringSomePatentsInRelationToIOT,SmartHealthandUHDDisplayTerminals.Accordingtothedecision,theCompanywouldtransfertoShenzhenKonkaHoldingsGroupCo.,Ltd.67patentsinrelationtocloudbigdataatapriceofRMB89,600,000.Asofnow,theCompanyhasreceivedthepatenttransferpaymentfromShenzhenKonkaHoldingsGroupCo.,Ltd.,andtheadministrativeproceduresforchangesintheregistrationofpatenteehavebeencompleted.Indextothepublicannouncementsaboutthesaidrelated-partytransactionsdisclosed
| Titleofpublicannouncement | Disclosuredate | Disclosurewebsite |
| ProposalonInitiatingtheEstablishmentofWuzhenJiayuDigitalEconomyIndustryFundandRelated-partyTransaction | 28March2020 | http://www.cninfo.com.cn/new/index |
| AnnouncementontheCompanySigningwiththeSubscriptionObjecta | 23May2020 |
KonkaGroupCo.,Ltd.AnnualReport2020
| ‘TerminationContractfortheShareSubscriptionAgreementwithConditionalEntryintoForce’andRelated-partyTransaction | |
| AnnouncementonProvidingAdvertisingServicestoOCTGroupandRelated-partyTransaction | 6June2020 |
| AnnouncementontheTransferof34%EquityofNanjingK-StarScienceandTechnologyIndustryParkOperationandManagementCo.,Ltd.andRelated-partyTransaction | 6June2020 |
| AnnouncementontheTransferofSomePatentsinRelationtoCloudBigDataandRelated-partyTransaction | 24June2020 |
| AnnouncementonCompletingChangesofRegistrationfortheTransferof34%EquityofNanjingK-StarScienceandTechnologyIndustryParkOperationandManagementCo.,Ltd. | 30June2020 |
| AnnouncementonTransferringSomePatentsinrelationtoIOT,SmartHealthandUHDDisplayTerminalsandRelated-partyTransaction | 21July2020 |
XVIIMajorContractsandExecutionthereof
1.Entrustment,ContractingandLeases
(1)Entrustment
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(2)Contracting
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(3)Leases
√Applicable□NotapplicableNotetoleasesNosignificantleasesintheReportingPeriod.TherentofKonkaDevelopmentBuildinghasreceivedRMB67.6924millionintheReportingPeriod.Theprojectbringingaboutgainsorlossesasover10%oftotalprofitintheReportingPeriod
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.MajorGuarantees
√Applicable□Notapplicable
(1)Guarantees
Unit:RMB'0,000
| GuaranteesprovidedbytheCompanyanditssubsidiariesforexternalparties(exclusiveofthoseforsubsidiaries) | ||||||||
| Obligor | Disclosuredateofthe | Lineof | Actualoccurrence | Actual | Typeof | Term | Havi | Guarante |
KonkaGroupCo.,Ltd.AnnualReport2020
| guaranteelineannouncement | guarantee | date | guaranteeamount | guarantee | ofguarantee | ngexpiredornot | eforarelatedpartyornot | |||
| YibinOCTSanjiangPropertiesCo.,Ltd. | 19September2018 | 40,000 | 29September2019 | 14,000 | Joint-liability | 3years | Not | Yes | ||
| KunshanKangshengInvestmentDevelopmentCo.,Ltd. | 19September2018 | 24,500 | 23September2019 | 24,500 | Joint-liability | 3years | Not | Yes | ||
| JiangxiXinxinJian’anEngineeringCo.,Ltd. | 10,000 | 12December2016 | 10,000 | Joint-liability | Not | Not | ||||
| JiangxiZhongyiDecorationMaterialsCo.,Ltd. | 10,000 | 12December2016 | 10,000 | Joint-liability | Not | Not | ||||
| JiangxiShanshiTechnologicalDevelopmentCo.,Ltd. | 10,000 | 12December2016 | 10,000 | Joint-liability | Not | Not | ||||
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(A1) | 39,200 | TotalactualamountofsuchguaranteesintheReportingPeriod(A2) | 0 | |||||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(A3) | 133,700 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(A4) | 68,500 | |||||||
| GuaranteesprovidedbetweentheCompanyandsubsidiaries | ||||||||||
| Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot | ||
| AnhuiTongchuang | 31March2017,23May2018and19September2018 | 90,000 | 1August2019 | 4,500 | Joint-liability | Oneandahalfyears | Not | Not | ||
| 25December2019 | 5,000 | Joint-liability | Not | Not | ||||||
KonkaGroupCo.,Ltd.AnnualReport2020
| 13January2020 | 3,500 | Joint-liability | 1year | Not | Not | |||
| 5November2019 | 3,000 | Joint-liability | 1year | Not | Not | |||
| 11March2020 | 5,800 | Joint-liability | 1year | Not | Not | |||
| 6August2020 | 3,000 | Joint-liability | 1year | Not | Not | |||
| 19October2020 | 3,000 | Joint-liability | 1year | Not | Not | |||
| HongKongKonka | 31March2017and31October2018 | 355,000 | 6March2020 | 13,050 | Joint-liability | 1years | Not | Not |
| 28December2020 | 20,000 | Joint-liability | 1year | Not | Not | |||
| BoluoKonkaPrecision | 31March2018 | 5,000 | 20February2019 | 2,500 | Joint-liability | 2years | Not | Not |
| 19August2020 | 2,480 | Joint-liability | 3years | Not | Not | |||
| ElectronicsTechnology | 19September2018 | 350,000 | 24July2020 | 10,000 | Joint-liability | 1year | Not | Not |
| 16November2020 | 50,000 | Joint-liability | 1year | Not | Not | |||
| 9June2020 | 6,000 | Joint-liability | 1year | Not | Not | |||
| 14August2020 | 8,000 | Joint-liability | 1year | Not | Not | |||
| DongguanKonka | 19September2018 | 10,000 | 8November2019 | 2,000 | Joint-liability | 5years | Not | Not |
| 16January2020 | 3,000 | Joint-liability | 1year | Not | Not | |||
| EconTechnology | 19September2018 | 120,000 | 14November2019 | 5,000 | Joint-liability | Oneandahalfyears | Not | Not |
| 29April2020 | 8,800 | Joint-liability | 1 | Not | Not |
KonkaGroupCo.,Ltd.AnnualReport2020
| year | ||||||||
| 25May2020 | 5,000 | Joint-liability | 1year | Not | Not | |||
| 5June2020 | 24,000 | Joint-liability | 1year | Not | Not | |||
| 21August2020 | 5,000 | Joint-liability | 1year | Not | Not | |||
| 22September2020 | 5,000 | Joint-liability | 1year | Not | Not | |||
| XingDaHongYe | 19September2018 | 10,000 | 12November2020 | 5,800 | Joint-liability | 2years | Not | Not |
| 25December2020 | 2,000 | Joint-liability | 3years | Not | Not | |||
| JiangxiKonka | 31October2018 | 60,000 | 18March2019 | 11,961 | Joint-liability | 2years | Not | Not |
| 28June2020 | 6,000 | Joint-liability | 1year | Not | Not | |||
| 26June2019 | 5,500 | Joint-liability | 3years | Not | Not | |||
| 30October2019 | 6,500 | Joint-liability | 3years | Not | Not | |||
| 20March2020 | 990 | Joint-liability | 2years | Not | Not | |||
| 4August2020 | 3,000 | Joint-liability | 1year | Not | Not | |||
| 29September2020 | 10,000 | Joint-liability | 3years | Not | Not | |||
| 30December2020 | 1,000 | Joint-liability | 3years | Not | Not | |||
| 6November2020 | 10,000 | Joint-liability | 3years | Not | Not | |||
| 21December2020 | 5,000 | Joint-liability | 2years | Not | Not | |||
| SichuanKonka | 31March2018 | 55,000 | 18March2019 | 4,000 | Joint-liability | 3years | Not | Not |
| PengrunTechnology | 19September2018 | 20,000 | 25August2020 | 5,000 | Joint-liability | 1year | Not | Not |
| XinfengMicrocrystalli | 30March2019 | 25,000 | 19May2020 | 5,000 | Joint-liability | 3years | Not | Not |
KonkaGroupCo.,Ltd.AnnualReport2020
| ne | 29May2020 | 3,479 | Joint-liability | 2years | Not | Not | |||
| 18June2020 | 7,200 | Joint-liability | 1year | Not | Not | ||||
| 8December2020 | 2,100 | Joint-liability | 3years | Not | Not | ||||
| 28December2020 | 7,200 | Joint-liability | 1year | Not | Not | ||||
| NanoCrystallizedGlass | 30March2019 | 45,000 | 26June2019 | 10,000 | Joint-liability | 3years | Not | Not | |
| 20December2019 | 5,000 | Joint-liability | 3years | Not | Not | ||||
| 8January2020 | 5,000 | Joint-liability | 3years | Not | Not | ||||
| 8January2020 | 5,000 | Joint-liability | 2years | Not | Not | ||||
| 20March2020 | 990 | Joint-liability | 2years | Not | Not | ||||
| 29May2020 | 5,975 | Joint-liability | 2years | Not | Not | ||||
| 24June2020 | 7,000 | Joint-liability | 1year | Not | Not | ||||
| 14July2020 | 6,000 | Joint-liability | 3years | Not | Not | ||||
| NingboKanghanrui | 6June2020 | 180,000 | 27July2020 | 6,000 | Joint-liability | 1year | Not | Not | |
| YibinKangrun | 24October2020 | 10,000 | 13November2020 | 10,000 | Joint-liability | 4years | Not | Not | |
| TelecommunicationTechnology | 31March2017 | 50,000 | 26August2020 | 7,500 | Joint-liability | 1year | Not | Not | |
| AnhuiKonka | 31March2017 | 110,000 | 25November2020 | 10,000 | Joint-liability | 1year | Not | Not | |
| 24December2020 | 26,800 | Joint-liability | 1year | Not | Not | ||||
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(B1) | 48,000 | TotalactualamountofsuchguaranteesintheReportingPeriod(B2) | 409,073 | ||||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(B3) | 1,981,504 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(B4) | 404,625 | ||||||
KonkaGroupCo.,Ltd.AnnualReport2020
| Guaranteesprovidedbetweensubsidiaries | |||||||||
| Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot | |
| SichuanKonka | 14,000 | 28May2018 | 14,000 | Joint-liability | 7years | Not | Not | ||
| RushanYikeWaterEnvironmentManagementCo.,Ltd. | 29,000 | 29December2016 | 29,000 | Joint-liability | 10years | Not | Not | ||
| WuhanRunyuanWastewaterTreatmentCo.,Ltd. | 21January2020 | 55,200 | 20January2020 | 55,200 | Joint-liability | 20years | Not | Not | |
| SubeiMongolAutonomousCountyKangrunWaterCo.,Ltd. | 24March2020 | 77,600 | 10March2020 | 77,600 | Joint-liability | 15years | Not | Not | |
| DayiKangrunWaterCo.,Ltd. | 13May2020 | 27,400 | 29April2020 | 27,400 | Joint-liability | 15years | Not | Not | |
| Xi’anGaolingKangrunEnvironmentalEngineeringCo.,Ltd. | 17December2020 | 24,571 | 17December2020 | 24,571 | Joint-liability | 15years | Not | Not | |
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(C1) | 202,771 | TotalactualamountofsuchguaranteesintheReportingPeriod(C2) | 184,771 | ||||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(C3) | 227,771 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(C4) | 227,771 | ||||||
| Totalguaranteeamount(totalofthethreekindsofguaranteesabove) | |||||||||
| TotalguaranteelineapprovedintheReportingPeriod(A1+B1+C1) | 289,971 | TotalactualguaranteeamountintheReportingPeriod(A2+B2+C2) | 593,844 | ||||||
| TotalapprovedguaranteelineattheendoftheReportingPeriod(A3+B3+C3) | 2,342,975 | TotalactualguaranteebalanceattheendoftheReportingPeriod(A4+B4+C4) | 700,896 | ||||||
KonkaGroupCo.,Ltd.AnnualReport2020
| Totalactualguaranteeamount(A4+B4+C4)as%oftheCompany’snetassets | 83.16% | |
| Ofwhich: | ||
| Balanceofguaranteesprovidedforshareholders,actualcontrollerandtheirrelatedparties(D) | 38,500 | |
| Balanceofdebtguaranteesprovideddirectlyorindirectlyforobligorswithanover70%debt/assetratio(E) | 648,096 | |
| Amountbywhichthetotalguaranteeamountexceeds50%oftheCompany’snetassets(F) | 279,464 | |
| Totalofthethreeamountsabove(D+E+F) | 700,896 | |
| JointresponsibilitiespossiblyborneintheReportingPeriodforundueguarantees(ifany) | N/A | |
| Provisionofexternalguaranteesinbreachoftheprescribedprocedures(ifany) | N/A | |
Compoundguarantees:
None
(2)IrregularitiesinProvisionofGuarantees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
3.CashEntrustedtoOtherEntitiesforManagement
(1)CashEntrustedforWealthManagement
√Applicable□NotapplicableOverviewofcashentrustedforwealthmanagement
Unit:RMB'0,000
| Type | Capitalresource | Amount | Outstandingbalance | Overdueamount |
| Bankfinancialproducts | Self-ownedfunds | 63,916.00 | 61,824.95 | 0 |
| Total | 63,916.00 | 61,824.95 | 0 | |
High-riskentrustedassetmanagementwithsignificantsingleamountorlowsecurity,poorliquidityandnocapitalpreservation:
□Applicable√NotapplicableWhetherthereisthecasewheretheprincipalcannotberecoveredatmaturityorothercasewhichmaycauseimpairmentforentrustedassetmanagement
□Applicable√Notapplicable
(2)EntrustedLoans
√Applicable□NotapplicableOverviewofentrustedloans
Unit:RMB'0,000
| Totalamount | Capitalresource | Outstandingamount | Overdueamount |
| 2,000 | Self-ownedfunds | 0 | 0 |
KonkaGroupCo.,Ltd.AnnualReport2020
High-riskentrustedloanswithsignificantsingleamountorlowsecurity,poorliquidityandnocapitalpreservation:
□Applicable√NotapplicableWhetherthereisthecasewheretheprincipalcannotberecoveredatmaturityorothercasewhichmaycauseimpairmentforentrustedloans
□Applicable√Notapplicable
4.MajorRoutineContracts
□Applicable√Notapplicable
5.OtherMajorContracts
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XVIIICorporateSocialResponsibility(CSR)
1.MeasuresTakentoFulfillCSRCommitmentTheCompanyinsiststheprincipleofhealth,stabilityandsustainabledevelopmenttobenefitshareholdersandemployeesandsatisfycustomers.Inpursuitofeconomicprofitsandprotectionofshareholders’profits,theCompanyisactiveinprotectinglegalrightsofdebtorsandemployees,treatingsuppliers,customersandconsumersingoodfaith,andparticipatinginenvironmentalprotectionandcommunityestablishmentforharmoniousdevelopmentoftheCompanyandsociety.
1.Toprotectrightsofshareholdersandcreditors
(1)TheCompanyprotectsrightsofshareholdersTheCompanyinsistsprotectionofrightsforallshareholders,especiallyequalstatusandlegalrightsformediumandsmallshareholders,andmakeinsuranceofrightstobeinformed,participationandvote.TheCompanywouldperformallobligationsofinformationdisclosuretoensuretimely,accurateandcompleteinformationandstrictlyexecuteconfidentialsystemofregistrarandinsiderinformationtoguaranteejustice.TheCompanypaysattentiontorepaytoshareholders,andinsistsmutualdevelopmentwithinvestors.Inthepreviousthreeyears,theCompanysharesdividendswithallshareholders.TheCompanystrictexecutesdividendpoliciesregulatedinArticlesofAssociation.AllcashdividendscomplywithregulationsinArticlesofAssociationandrequirementsinshareholders’conference.
(2)TheCompanyprotectsrightsofcreditorsInfullconsiderationoflegalrightsofcreditors,theCompanycomplieswithstrictbusinessrulesofcreditcooperationtoguaranteelegalrightsofcreditors.Nodamagesuponrightsofcreditorshappened.
2.TheCompanyperformsresponsibilitiestosuppliersandcustomers
(1)Itisdevotedtoimprovecustomerservicequality.
KonkaGroupCo.,Ltd.AnnualReport2020
TheCompanyisinsistingphilosophyofcustomerorientationtostrengthencustomerservicemanagement,serviceconsciousnessforemployees,servicelevelsandtoprotectrightsforcustomers.Throughcustomerservicehot-line,fieldvisitandfollow-upservice,theCompanyhassetagoodcorporateimageforcustomers.
(2)BehonesttosuppliersFollowingtheprincipleofintegrityandmutuallybeneficialcooperation,theCompanykeepsgoodcooperativerelationswithsuppliersateachlevel.Thecorporateprincipleisopen,fairandimpartialtostandardizeprocurement,protectsuppliers’legalrightsandlaysolidfoundationforfurthercooperation.
3.BeenthusiastictosocialandpublicwelfareundertakingsBasedontheprincipleofappreciatingandrepayingthesociety,theCompanyhasparticipatedinallkindsofactivitiesforpublicwelfare,cooperatedwithsociety,undertakensocialresponsibilitiesactivelyandpromotedharmoniousdevelopmentbetweenenterpriseandsociety.
4.BeresponsibleforemployeesTheCompanyinsiststheprincipleofpeopleorientationtoimproveworkingenvironment,promoteoccupationalskills,provideopportunityandplatformfordevelopmentandgrowthandencourageselfupgradationandrealizationforemployees.Mutualimprovementforemployeesandenterprisecouldbeachieved.
(1)Behonestandlaw-abidingtoprotectlegalrightsforemployeesTheCompanywouldstrictlycomplywithlawsandregulationsinLaborLawandLaborContractLawtosignlaborcontractwithemployeeswithfairtreatmentinemployment,payment,promotion,training,demissionandretirement.Also,theCompanywouldpayallkindsofinsurancesandhousingfundforemployees.Regularphysicalexaminationwouldbeorganizedforeachyear.Anyproblemsfoundwouldrequirere-examinationandconsultationfromadoctor.TheCompanywouldimprovelivingquality;enhancecohesiveforceandsenseofbelongingsthroughaseriesofsafeguardmeasures.
(2)ToprotectoccupationalhealthforemployeesTheCompanywouldestablishandperfecttraining,safetyassessmentbysecuritysystemtoguaranteethesafetyandoccupationalhealthforemployees.Ontheotherhand,bypromotionoftheimportanceofsafety,safetyawarenesswouldberootedinthehearttomakeallemployeesabidebysafetystandardsandfullyplaysubjectiveinitiativeinprotectingself-occupationalsafetyandproductionsafety.
(3)TopromoteoccupationalskillsbydiversifiedprofessionaltrainingTheCompanyhasalwayspaidgreatattentionondiversifiedtrainingforemployees.Ontheonehand,theCompanywouldbemeticulousintrainingofregularbusinessandoccupationalskillsandcarryoutallrequirementspositivelytoimproveprofessionallevelsbynormaltrainingmanagement.
KonkaGroupCo.,Ltd.AnnualReport2020
Ontheotherhand,theCompanywouldestablishmethodsofself-trainingplatform,traininginstructor,themetrainingandlecturestoprovidecolorfultrainingactivities.Besidesthework,professionalandcomprehensivequalitywouldbefullypromoted.
5.BeresponsibleforenvironmentTheCompanyconcernsaboutenvironmentalchangesandcloserelationshipswithenvironmentbycreatinglowcarboneconomyintechnicalinnovation,fromgreenmanufacturing,greenproductstogreenindustrycirculareconomy.TheCompanywouldprovideeffortsinprotectingglobalecologicalenvironment.InJune2012,subsidizedproductscataloguehadbeenreleasedjointlybyNationalDevelopmentandReformCommission,MinistryofIndustryandInformationandMinistryofFinance.Inthenewyear,theCompanywouldundertakeallsocialresponsibilitiesbyimprovingstrategicmanagement,sustainabledevelopmentandenterpriseeconomicefficiency.Itwouldreattributeallshareholdersandwouldprotectlegalrightsforcreditorsandemployees.Tobehonesttosuppliersandcustomers,theCompanywouldservelocaleconomicdevelopmentandparticipateinsocialpublicwelfareactivitiesandenvironmentprotection.Itwouldundertakeallresponsibilitiesinmanyfieldsandmakeattributionstosocial,economic,andenvironmentalsustainabledevelopmentforasocialismharmonioussociety.
2.MeasuresTakenforTargetedPovertyAlleviation
(1)PlansInaccordancewiththeguidingprinciplesofthestateonthedevelopmentofprecisionpovertyalleviation,theCompanyhasproactivelycarriedoutcriticalworkonpovertyalleviationandengagedinthetargetedsupportinSansuiCountyandTianzhuCountyinGuizhouProvince.
(2)SummaryoftheRelatedWorkDoneintheReportingPeriodIn2020,theCompanydonatedmoneytoandpurchasedagriculturalproductsfromSansuiCountyandTianzhuCountyinGuizhouProvincewithatotalofRMB1.2million.
(3)ResultsofTargetedPovertyAlleviation
| Index | Unitofmeasurement | Amount/implementation |
| I.Overallsituation | —— | —— |
| Ofwhich:1.Money | RMB’0,000 | 120 |
| II.Itemizedinvestment | —— | —— |
| 9.Otherplans | —— | —— |
| Ofwhich:9.2Investmentamount | RMB’0,000 | 120 |
(4)SubsequentPlansTofullyperformitsdutiesoftargetedpovertyalleviation,in2021,theCompanyplanstocontinuouslyconductthetargetedpovertyalleviationaffairsforTianzhuandSansuitwocountiesofGuizhouProvince.
KonkaGroupCo.,Ltd.AnnualReport2020
3.IssuesRelatedtoEnvironmentalProtectionIndicatebytickmarkwhethertheCompanyoranyofitssubsidiariesisidentifiedasamajorpolluterbytheenvironmentalprotectionauthorities.
√Yes□No
| Nameofpolluter | Nameofmajorpollutants | Wayofdischarge | Numberofdischargeoutlets | Distributionofdischargeoutlets | Dischargeconcentration | Dischargestandardsimplemented | Totaldischarge | Approvedtotaldischarge | Excessivedischarge |
| XingDaHongYe | Pollutionsourcesofwastewater:PH,totalcopper,COD,ammonianitrogen,totalnitrogen,totalphosphorus,totalcyanide,totalnickel,totaliron,totalaluminum,petroleum,suspendedsolids | Dischargeofstationarypollutionsources | 1 | Maindischargeoutletofthewastewaterstation | PH6-9;totalcopper≤0.3mg/L;COD≤50mg/L;ammonianitrogen≤8mg/L;totalnitrogen≤15mg/L;totalphosphorus≤0.5mg/L;totalcyanide≤0.2mg/L;totalnickel≤0.1mg/L;totaliron≤2mg/L;totalaluminum≤2mg/L;petroleum≤2mg/L;suspendedsolids≤30mg/L | GB21900-2008DischargeStandardForPollutantsFromElectroplating | 0.4485milliontons/year | Totaldischarge448,500tons/year;pollutantCOD19.061250tons/year;ammonianitrogen3.0498tons/year;totalnitrogen32.9792tons/year;totalphosphorus0.2082tons/year | None |
| wastegaspollutants:sulfuricacidfume,hydrogenchloride,formaldehyde, | Dischargeofstationarypollutio | 14 | Threeontheroofofplant1,tenontheroofofplant2and | sulfuricacidfume≤30mg/m3;nitrogenoxide≤200mg/m3;hydrogenchloride≤30mg/m3;hydrogencyanide≤0.5mg/m | EmissionStandardforElectroplatingPollutantsGB21900-2008AirEmissionLimitsTable5,EmissionstandardofVolatile | 2,986,560,000standardcube/year | Totaldischarge:2,986,560,000standardcube/year(note:thetotaldischargeisnotstatedin | None |
KonkaGroupCo.,Ltd.AnnualReport2020
| hydrogencyanide,nitrogenoxide,ammonia,benzene,toluene+xylene,TVOC,tinanditscompounds,PM(dust) | nsources | oneontheroofofthecanteen | 3;TVOC≤90mg/m3;benzene≤1mg/m3;toluene+xylene≤15mg/m3;tinanditscompounds≤8.5mg/m3;PM(dust)≤120mg/m3 | OrganicCompoundsforPrintingIndustryDB44/815-2010;GuangdongAirPollutantEmissionStandardDB44/27-2001theSecondLevelStandardintheSecondPeriod,EmissionstandardforOdorPollutants(GB14554-1993)Table2Standard | thelatestversionofnationaldischargepermitin2021;twoexhausttowerswereaddedin2021;calculatedbasedonairvolumeinenvironmentalimpactassessment) | ||||
| BoluoKonkaandBoluoKonkaPrecision | Wastewaterpollution:PH,copper,COD,ammonianitrogen,totalnitrogen,totalphosphorus | Dischargeofstationarypollutionsources | 1 | Maindischargeoutletofthewastewaterstation | 1.Emissionstandardforpollutiondischargecertificate:copper≤0.5mg/L;COD≤80mg/L;ammonianitrogen≤15mg/L;totalnitrogen≤20mg/L;totalphosphorus≤1mg/L;2.localemissionstandard:copper≤0.5mg/L;COD≤30mg/L;ammonianitrogen≤1.5mg/L;totalnitrogen≤10mg/L;totalphosphorus≤0.3mg/L | 1.Dischargestandardofdischargepermit:DischargeStandardofElectroplatingWaterPollutantforElectroplatingDB44/1597-2015Table1PearlRiverDeltaDischargeStandard;2.Localdischargestandard:BFBH[2019]No.58Document:COD,ammonianitrogen,totalphosphorusbasedon"EnvironmentalQualityStandardsforSurfaceWaterGB3838-2002"CategoryIVwaterstandard,thetotalnitrogendischargereaches50%of | 318,300tons/yearNote:accordingtodischargepermit | Totaldischargeamountis318,300tons/year;CODis25.464tons/year;ammonianitrogenis4.775tons/year;totalnitrogenis4.8tons/year.Note:accordingtothedischargecertificate | None |
KonkaGroupCo.,Ltd.AnnualReport2020
| dischargelimitrequirementofthecorrespondingindustry | ||||||||
| wastegaspollutants:sulfuricacidfume,hydrogenchloride,formaldehyde,hydrogencyanide,nitrogenoxide,ammonia,benzene,methylbenzene,TVOC,tinanditscompounds,PM(dust),oilfume | Dischargeofstationarypollutionsources | 20 | Sixontheroofofplant1,thirteenontheroofofplant2andoneinsewagestation | sulfuricacidfume≤30mg/m3；nitrogenoxide≤200mg/m3；hydrogenchloride≤30mg/m3；TVOC≤90mg/m3；benzene≤12mg/m3；methylbenzen≤40mg/m3；dimethylbenzene≤70mg/m3；tinanditscompounds≤8.5mg/m3；PM（dust）≤120mg/m3；oilfume≤2mg/m3 | EmissionStandardforElectroplatingPollutantsGB21900-2008AirEmissionLimitsTable5,GuangdongAirPollutantEmissionStandardDB44/27-2001theSecondLevelStandardintheSecondPeriod,EmissionstandardforOdorPollutants(GB14554-1993)Table2Standard,Emissionstandardofcookingfume(GB18483-2001) | / | Thetotaldischargeisnotstatedinthelatestversionofnationaldischargepermitin2020 | None |
Theconstructionofanti-pollutionfacilitiesanditsoperationsituation
①XingDaHongYeAllproductionequipmentofGuangdongXingdaHongyeElectronicsCo.,Ltd.hasbeensetupwithsupportingenvironmentalprotectionfacilitiesaccordingtotherequirementsofenvironmentalimpactassessment.Thedischargeofwastewater,wastegasandnoiseaswellasthedisposalofallsolidwastesintheCompanyallmetthestandardsduringtheReportingPeriod.ThesewagetreatmentcentreofGuangdongXingdaHongyeElectronicsCo.,Ltd.withaninvestmentofaboutRMB15millionwasformallyputintoproductioninJune2007,andthetreatmentcapacityofthesewagetreatmentfacilitywas2,566tons/day.Aftertechnicalimprovementandexpansion,thecapacityincreasedto2,900tons/daywiththetreatmentprocessremainingunchanged.Currently,thesewagetreatmentfacilitiesarefunctioningwellandthemainpollutantdischargemeetsthedischargestandardsandenvironmentalassessmentstandards.ThepollutantsaredischargedtoFushachongafterbeingtreatedattheself-builtsewagetreatmentstation.
②BoluoKonkaandBoluoKonkaPrecisionAllproductionequipmentofBoluoKonkaandBoluoKonkaPrecisionhasbeenreportedforenvironmentalassessment,reviewandapproval.Thesupportingenvironmentalprotectionandpollutioncontrolfacilitieshavebeendesignedbypollutanttypeandconcentrationandeffectivelyoperatedinatargetedmanner.DuringtheReportingPeriod,thedischargestandardsweremetin
KonkaGroupCo.,Ltd.AnnualReport2020
termsofindustrialwastewater,exhaustandfactorynoise,andallindustrialwastegeneratedwasdisposedofincompliancewithenvironmentallawsandregulations.BoluoKonkawasestablishedin2000.TomanufacturesinglesidedPCBs,itinvestedapproximatelyRMB5millioninconstructingasewagetreatmentstationwithoutthebiochemicaltreatmentfunctionandfeaturingadischargecapacityof300tonsperday.In2007,BoluoKonkaexpandeditsfactorybystartingthePhaseIIproject,whichwassubmittedforenvironmentalassessmentasBoluoKonkaPCBDoubleSidedandMulti-LayerPCBProject(latertheprojectownerwaschangedintoBoluoKonkaPrecision).ItspentaboutRMB10milliononconstructingthePhaseIIsewagetreatmentstationtoaddthebiochemicaltreatmentfunctionwithadischargecapacityof800tonsperday.In2019,accordingtotherequirementsinthedocumentsissuedbyBoluoCountyEcologyandEnvironmentBureau,thetwosewagetreatmentstationsofBoluoKonkaandBoluoKonkaPrecisionmustbeupgradedtowardshigherstandards.Throughcomprehensiveassessmentoftheprofessionalenvironmentalprotectioncompany,itwasdecidedthatthesewagetreatmentstationsofthesaidcompaniesbecombinedtomeettheupgradingrequirements.BoluoCountyEcologyandEnvironmentBureauapprovedthecombinationofthedischargeoutletsoftheaforementionedcompanies,andBoluoKonkawouldappointBoluoKonkaPrecisiontotreatsewage.Afterthecombination,thedischargecapacitywouldreach1,100tonsperday.TheaforementionedcompaniesspentaboutRMB20millionbetween2019and2020onupgradingthesewagetreatmentstationstowardshigherstandards,andaddedindustrialadvancedprocessesandtreatmentsystems,suchasROwatertreatment,FentonoxidationandMBRfilms.Afterthetechnologicalimprovementsandexpansion,thesewagetreatmentreaches2,200tonsperday(withadischargecapacityof1,100tonsperday)withareuserateofmorethan60%.Atpresent,thewastewatertreatmentfacilitiesareoperatingingoodconditions;thedischargeofmajorpollutantsmeetsthedischargestandards.Afteradvancedtreatmentofthewaterreusefacilities,thewatertreatedbythesewagestationsthatmeetsthestandardswillbereusedintheplants,whiletheremainingwaterwillbedischargedtothemunicipalpipenetworktobeprocessedbytheurbanandruralwatertreatmentfactorybeforebeingdischargedtotheDongjiangRiver.Environmentalimpactassessmentandotherenvironmentalprotectionadministrativelicensesoftheconstructionproject
①XingDaHongYeGuangdongXingdaHongyeElectronicsCo.,Ltd.obtainedtheapprovalfromZhongshanEnvironmentalProtectionBureau(ZHJ[2004]No.61)fortheoperationsandconstructionherein2004.Subsequently,itobtainedthedocumentsofZHJD[2008]No.06250andZHJD[2010]No.04469respectivelyin2008and2010.Aftertheoperationsofitsoriginalproject,GuangdongXingdaHongyeElectronicsCo.,Ltd.passedthetwophasesofacceptanceassessment,includingthePhaseIacceptanceassessmentin2008(HY[2008]No.02)andthePhaseIIacceptanceassessmentin2012(ZHYBG[2012]No.000092).InDecember2012,GuangdongXingdaHongyeElectronicsCo.,Ltd.commissionedZhongshanResearchInstituteofEnvironmentalProtectionSciencetoconducttheassessmentofenvironmentalimpactforthetechnicalimprovementandexpansionprojectofGuangdongXingdaHongyeElectronicsCo.,Ltd.On31December2012,itobtainedtheapprovaldocumenttitledReplytotheReportontheEnvironmentalImpactoftheTechnicalImprovementandExpansionProjectofGuangdongXingdaHongyeElectronicsCo.,Ltd.(ZHJS(2012)No.115)fromZhongshan
KonkaGroupCo.,Ltd.AnnualReport2020
EnvironmentalProtectionBureau.Thedocumentgrantedtheapprovalforadditionoftheproductionofsix-layerPCB,eight-layerPCBandaboveandHDIboardsandforreductionoftheproductionofsingle-sidedPCB.Afterthetechnicalimprovementandexpansion,thetotalproductioncapacityofsingle-sidedPCBwouldbe200,000m
/year,ofdouble-sidedPCBwouldbe250,000m
/year,offour-layerPCBwouldbe300,000m
/year,ofsix-layerPCBwouldbe200,000m
/year,ofeight-layerPCBandabovewouldbe150,000m
/yearandofHDIboardswouldbe100,000m
/year.Intheproject,whiletheoriginalplatingequipmentandprocessesremainedunchanged,thebrownoxideprocesswasaddedtotheoriginalproductionprocess;alltheincreasedplatingcapacitywouldbeoutsourced.Thetechnicalimprovementandexpansionprojectwascommencedin2013andcompletedinJanuary2018.Thecommissioningwascarriedoutfrom10February2018to8July2018.Theconstructionoftheprojectcompliedwiththerequirementsforenvironmentalimpactassessmentandmetthecriteriafortheacceptanceofenvironmentalprotectionforthecompletionofconstructionprojects.In2021,theCompanyrenewed/changedthestatesewagepermit,certificateNo.:91442000768405216J001P.
②BoluoKonkaandBoluoKonkaPrecisionIn2000,BoluoKonkaobtainedtheapprovalfromtheHuizhouMunicipalEcologyandEnvironmentBureau(HSHJ[2000]No.23).Theprojectwascompletedandputintooperationinthesameyear.ThepollutantdischargepermitNo.is91441322721121283N001U.InJanuary2007,BoluoKonkaappointedHuizhouInstituteofEnvironmentalSciencestoconducttheenvironmentalimpactassessementoftheBoluoKonkaExpansionProject.OnFebruary8,2007,BoluoKonkareceivedtheDocumentofApprovalfortheEnvironmentalImpactReportontheProjectofBoluoKonkaDoubleSidedandMulti-LayerBoards(HSHJ[2007]No.J32).AccordingtotheDocument,approvalwasgiventotheadditionofdoublesidedandmulti-layercircuitboardsintheprojectexpansion.Theproductioncapacityforsinglesidedcircuitboardswouldreach1millionsquaremetersperyear,anddoublesidedandmulti-layercircuitboardswouldreach650,000squaremetersperyearaftertheprojectexpansion.Inaddition,electroplatingequipmentandprocesswouldbeaddedintheexpansionproject.Theconstructionoftheprojectmettheenvironmentalassessmentrequirementsandsatisfiedtheconditionsfortheenvironmentalprotectionintheprojectinspectionandacceptance.Thepollutantdischargepermitwasobtainedinthesameyear.TheaforementionedprojectwaslaterrenamedasBoluoKonkaPrecision.In2020,BoluoKonkaPrecisionobtainedthenationalpollutantdischargepermitwiththepermitNo.91441322799316208F001V.Contingencyplanforemergentenvironmentalincident①XingDaHongYeInstrictaccordancewithrequirementsoflaws,regulationsandrelevantdocuments,suchasLawofthePeople’sRepublicofChinaonEmergencyResponseandInterimMeasuresonEnvironmentalEmergencyResponsePlan,GuangdongXingdaHongyeElectronicsCo.,Ltd.hasestablishedriskpreventionmeasuresandemergencyresponseplans,keptitsemergencyequipmentinanormalstate,formulatedtheContingencyPlanforEmergentEnvironmentalIncident,andputonrecordsatZhongshanEnvironmentalProtectionBureau,GuangdongProvince,recordNo.:4420002017044M.Inaddition,theCompanyconductsadrillofmajorenvironmentalpollutionincidentonitsfactorytoenhanceitsemergencyresponsecapabilitiesforemergentenvironmentalpollutionincidents.Furthermore,GuangdongXingdaHongyeElectronicsCo.,Ltd.hasbuiltanemergencypool(whichisthecomprehensivewatertankinthesewagetreatmentstationcoveringanareaof800m
)andset
KonkaGroupCo.,Ltd.AnnualReport2020
upafirepool(500m
andlocatedonFloor1ofFactoryBuildingNo.2),whichserveastemporarystoragepoolsforexteriordrainageorfiredrainagetoeradicateaccidentaldischargeofwastewaterinthecaseoffailedoperationofthesewagetransmissionpipelineorfireaccidentduetooutageorotherspecialcircumstances.Thesewagetransmissionpipelinehasbeenequippedwithanti-corrosionandcathodicprotectionusinganti-corrosionpipesandcarbonsteelpipes.Pursuanttothenewdischargestandards,therelateddischargepipelinehasbeenmodifiedandtheproductiondepartmenthasbeenrequiredtodischargestrictlyinaccordancewithdischargestandardstocutthecostsofwastewatertreatment.Differenttypesofwastewaterarenormallyandproperlytreatedthroughfineshunting.Personnelhavebeenspeciallyarrangedtomanagethechemicalliquidwarehouseandexertreasonablecontrolandrequirementsovertheliquiddischargebytheplantandtimelytransportationoftheliquidbysuppliers;emergencytoolssuchasprotectivemasks,bootsandimmisciblepumpshavebeenequipped.②BoluoKonkaandBoluoKonkaPrecisionBoluoKonkaandBoluoKonkaPrecisionstrictlyabidesbyEmergencyResponseLawofthePeople'sRepublicofChina,InterimMeasuresfortheManagementofEmergencyPlansforUnexpectedEnvironmentalIncidents,otherrelatedlawsandregulationsaswellastherequirementsofrelevantdocuments.Theyhaveestablishedriskpreventionmeasuresandemergencyplans,suchasEmergencyPlanforUnexpectedEnvironmentalIncidents,andhavetheiremergencyequipmentruninanormalstatus.Inaddition,theyhavefiledwithBoluoCountyBranchofEcologyandEnvironmentBureauinHuizhou,GuangdongandHuizhouEcologyandEnvironmentBureaurespectivelywiththefileNo.441322-2020-0073-Mand441301-2021-004-M.Theyorganizeallstafftoconductdrillsformajorenvironmentalpollutionincidentseveryyeartoimprovetheirabilityfortheemergencyresponsetounexpectedenvironmentalpollutionincidents.BoluoKonkaandBoluoKonkaPrecisionarewellequippedwithallnecessaryfacilitiesforemergencyresponsetounexpectedincidents,includinganemergencyresponsepoolofindustrialwastewater(500m
,underthegroundofthesewagetreatmentstation)andafirefightingreservoir(300m
,locatedbesidethestaffdormitorybuilding).Intheeventofanunexpectedenvironmentalincident,suchasleakageorfailureofawastewatertransportingpipe,theemergencyresponsepoolwillpreventanyaccidentofindustrialwastewater;intheeventofafiresafetyaccident,thefirefightingreservoirwillbeputintouse.Alldepartmentsarerequiredtodischargepollutantsstrictlyinaccordancewithpollutantdischargestandardstoreducethecostsofwastewatertreatmentbyproperlyandreasonablydividingsolutionandwastewaterdischargedfromtheplants.Thechemicalwarehousesaremanagedbydesignatedpersonnel,withstandardcontrolandrequirementsovertheloadingandunloadingofchemicalproductsbysuppliers.Intermsofemergencyresponsesupplies,afullsetofemergencyrescuetoolsareprepared,includinggasmasks,acidandalkalineresistantboots,gloves,goggles,safetyropes,helmets,firesandandsubmersiblepumps.Environmentalself-monitoringplan①XingDaHongYeAccordingtotherequirementsoftheEnvironmentalProtectionAdministration,XingdaHongyeattachesgreatimportancetoenvironmentalmonitoringmanagement.Thus,pursuanttotheMeasuresforSelf-MonitoringandInformationDisclosureofNationalKeyMonitoredEnterprises,theReportontheEnvironmentalImpactoftheTechnicalImprovementandExpansionProjectofGuangdongXingdaHongyeElectronicsCo.,Ltd.andthereplyopinionsforenvironmentalimpact
KonkaGroupCo.,Ltd.AnnualReport2020
assessment,theCompanyhasformulatedtheEnvironmentalSelf-MonitoringPlanandreportedtothemunicipalenvironmentalprotectionbureauforapprovalandrecord.ItimplementsonlinemonitoringforthePH,CODandammonianitrogenpollutantsdischargedinwastewaterthroughreal-timemonitoringandanautomaticfrequencyofeverytwohours,entruststhequalifiedthird-partyonlinemonitoringequipmentoperationandmaintenanceinstitutetocarryoutperiodicmaintenanceonautomaticmonitoringequipmentandmonitoringdatanetworkingequipment,andentruststhequalifiedthird-partymonitoringunittocarryoutthe“threewastes”projectmonitoring.Allself-monitoringplanresultswillbereportedanddisclosedonpublicplatformsonaperiodicbasis.Inthecaseofnormalproduction,theresultswillbeupdatedonadailybasis,withonlinemonitoringdatadisclosedinrealtimeandmanualmonitoringdatadisclosedontheRealtimepublicityorevery2hoursaftercompletion.Itemsmonitoredonamonthlybasiswillbedisclosedbythe10thdayofthemonth.Inthecaseofpublicholidays,theoperationmonitoringdatafortheholidayperiodwillbedisclosedonthefirstworkingdayaftertheholiday.Theannualself-monitoringreportforthepreviousyearwillbedisclosedattheendofJanuaryeachyear.Inthecaseofshutdownwithdaysoff,thenumberofdaysoffwillbeindicatedintheinformationbarandrelatedproofswillbesubmittedtothemonitoringcenterofthemunicipalenvironmentalbureauforrecord.TheresultsaredisclosedonGuangdongProvinceKeyPollutionSourceRegulatoryInformationPlatformandonNationalPollutionSourceMonitoringInformationManagementandSharingPlatformforpublicmonitoring.
②BoluoKonkaandBoluoKonkaPrecisionInlinewiththerequirementsofenvironmentaldepartments,BoluoKonkaandBoluoKonkaPrecisionattachgreatimportancetoenvironmentalmonitoringandmanagement.BasedontheMeasuresfortheSelf-MonitoringandInformationPublicityofEnterprisesunderNationalKeyMonitoring,EnvironmentalImpactReportandtheopinionsstatedinreplytotheenvironmentalassessment,theyhaveestablishedtheEnvironmentalSelf-MonitoringPlanofEnterprisesandfiledarecordwiththemunicipalecologyandenvironmentbureau.Accordingtotheplan,theyhaveinstalledanonlinemonitoringsystemtomonitorthePHvalue,totalflow,COD,ammonianitrogenandtotalphosphorusofthewastewater,andnetworkedwiththeecologyandenvironmentbureau.Theyappointaqualifiedthird-partyonlinemonitoringequipmentoperationandmaintenanceorganizationtoperformregularmaintenanceoftheautomaticmonitoringequipmentandthemonitoringdatanetworkingequipment,andaqualifiedthird-partymonitoringorganizationtoperformthemonitoringofthe“threewastes”.Allself-monitoringresultswillbereportedandpublishedonpublicplatformsandsubjecttopublicmonitoring.Otherenvironmentalinformationthatshouldbedisclosed
①XingDaHongYe
TheenvironmentalprotectioninvestmentofGuangdongXingdaHongyeElectronicsCo.,Ltd.for2020wasapproximatelyRMB10.85million,mainlyusedastheenvironmentalengineeringinvestment(approximatelyRMB4.5million)andtheoperationofenvironmentalprotectionequipment(approximatelyRMB6.35million).
②BoluoKonkaandBoluoKonkaPrecisionBoluoKonkaandBoluoKonkaPrecisioninvestedRMB20milliononenvironmentalprotectionin2020intotal,includingRMB17.1millionusedinenvironmentalprotectionprojects(RMB12.85millionforwastewaterstationupgrading,RMB1.45millionforphaseIIwastegastreatmentproject,
KonkaGroupCo.,Ltd.AnnualReport2020
RMB1.85millionforoverheadpipenetwork,RMB750,000forexpansionofsolidwastewarehouseandRMB200,000forotherminorprojects)andRMB2.9millionusedinoperationofenvironmentalprotectiontreatmentfacilities.OtherEnvironmentalInformationAccordingtotheexaminationbytheCompany,theCompanyanditsotherholdingsubsidiariesarenotkeypollutantunits.Allhavefaithfullyimplementedthelawsandregulationsrelatedtoenvironmentalprotection,suchasEnvironmentalProtectionLawofthePeople'sRepublicofChina,WaterPollutionPreventionandControlLawofthePeople'sRepublicofChina,LawofthePeople'sRepublicofChinaonthePreventionandControlofAtmosphericPollution,LawofthePeople'sRepublicofChinaonPreventionandControlofPollutionFromEnvironmentalNoise,LawofthePeople'sRepublicofChinaonthePreventionandControlofEnvironmentalPollutionbySolidWasteinthedailyproductionandoperation,withoutbeingpunishedforviolationsoflawsandregulationsduringtheReportingPeriod.XIXOtherSignificantEvents
√Applicable□Notapplicable(I)Privateplacementofcorporatebonds:asfortheprivateplacementofcorporatebondsofRMB2.3billion,currently,RMB1billionofcorporatebondshavebeenissuedsuccessfullyon8January2021,andtherestcorporatebondsofRMB1.3billionandthecorporatebondbusinessofRMB0.6billionareinmovingforward.(II)PrivateplacementofA-shares:CSRChasterminateditsreviewontheCompany’sprivateplacementofA-sharesattherequestoftheCompany.(III)Launchandestablishmentofthefund:Currently,OrientKonkaIndustryM&AFundrespectivelyholds7.26%,2.07%,11.73%,9.21%,3.00%,and3.84%equityinterestinJiangxiYahuaElectronicMaterialsCo.,Ltd.,GenewTechnologiesCo.,Ltd.,ShenzhenGrentechRFCommunicationCo.,Ltd.,HuizhouXuxinIntelligentTechnologyCo.,Ltd.,YimeideAutomationTechnologyCo.,Ltd.,GmaOptoelectronicTechnologyCo.,Ltd.WuzhenJiayuDigitalEconomyIndustryFundholds12.00%equityinterestinFlyingScienceAndTechnology(Shenzhen)Co.,Ltd.YibinKanghuiEmergingIndustryFundandKonkaYanchengElectronicInformationIndustryFundhavecompletedthefilinginAssetManagementAssociationofChina.ChongqingKangxinSemiconductorIndustryFundhasaccomplishedthesigningofthepartnershipagreementandnowthefilinginAssetManagementAssociationofChinaisunderway.(IV)Disclosureindexofsignificantinformation
| AnnouncementNo. | Date | Title | Pageonnewspaper | Linkonhttp://www.cninfo.com.cn |
| 2020-01 | 2020-1-14 | AnnouncementonResignationofVicePresidentoftheCompany | SecuritiesTimesB29,ShanghaiSecuritiesNews40etc. | http://www.cninfo.com.cn/new/index |
| 2020-02 | 2020-1-17 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB24,ShanghaiSecuritiesNews68etc. | |
| 2020-03 | 2020-1-21 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB64,ShanghaiSecuritiesNews89etc. |
KonkaGroupCo.,Ltd.AnnualReport2020
| 2020-04 | 2020-1-21 | AnnouncementonSigningStrategicFrameworkAgreement | SecuritiesTimesB64,ShanghaiSecuritiesNews89etc. |
| 2020-05 | 2020-2-5 | AnnouncementonAbnormalVolatilityofStockTrading | SecuritiesTimesB33,ShanghaiSecuritiesNews60etc. |
| 2020-06 | 2020-2-7 | AnnouncementonAbnormalVolatilityofStockTrading | SecuritiesTimesB46,ShanghaiSecuritiesNews68etc. |
| 2020-07 | 2020-2-10 | AnnouncementonAbnormalVolatilityofStockTrading | SecuritiesTimesB11,ShanghaiSecuritiesNews44etc. |
| 2020-08 | 2020-2-13 | AnnouncementonAbnormalVolatilityofStockTrading | SecuritiesTimesB31,ShanghaiSecuritiesNews52etc. |
| 2020-09 | 2020-2-21 | AnnouncementonAbnormalVolatilityofStockTrading | SecuritiesTimesB29,ShanghaiSecuritiesNews57etc. |
| 2020-10 | 2020-2-25 | AnnouncementonReplyfortheConcernLetterofShenzhenStockExchange | SecuritiesTimesB19,ShanghaiSecuritiesNews5etc. |
| 2020-11 | 2020-2-27 | AnnouncementonProgressofReplyfortheConcernLetterofShenzhenStockExchange | SecuritiesTimesB79,ShanghaiSecuritiesNews76etc. |
| 2020-12 | 2020-3-3 | AnnouncementontheResolutionofthe23rdMeetingofthe9thBoardofDirectors | SecuritiesTimesB44,ShanghaiSecuritiesNews65etc. |
| 2020-13 | 2020-3-3 | AnnouncementonLaunchandEstablishmentofEmergyingIndustryDevelopmentInvestmentFund | SecuritiesTimesB44,ShanghaiSecuritiesNews65etc. |
| 2020-14 | 2020-3-3 | AnnouncementonReceivingtheReplyonEnquiryofAnyPlannedEventswithSignificantEffectsontheCompanybyControllingShareholders | SecuritiesTimesB44,ShanghaiSecuritiesNews65etc. |
| 2020-15 | 2020-3-4 | SupplementaryAnnouncementonLaunchandEstablishmentofEmergyingIndustryDevelopmentInvestmentFund | SecuritiesTimesB6,ShanghaiSecuritiesNews36etc. |
| 2020-16 | 2020-3-18 | AnnouncementonOfferingOverseasLoanunderDomesticGuaranteetoForeignWholly-ownedSubsidiary | SecuritiesTimesB25,ShanghaiSecuritiesNews44etc. |
| 2020-17 | 2020-3-24 | AnnouncementonOfferingGuaranteesbytheMajority-ownedSubsidiarytoitsMajority-ownedSubsidiary | SecuritiesTimesB24,ShanghaiSecuritiesNews60etc. |
| 2020-18 | 2020-3-28 | AnnouncementontheResolutionofthe24thMeetingofthe9thBoardofDirectors | SecuritiesTimesB33,ShanghaiSecuritiesNews28etc. |
| 2020-19 | 2020-3-28 | ProposalonInitiatingtheEstablishmentofWuzhenJiayuDigitalEconomyIndustryFundandRelated-partyTransaction | SecuritiesTimesB33,ShanghaiSecuritiesNews28etc. |
| 2020-20 | 2020-4-11 | AnnouncementontheProgressofOfferingGuaranteestotheWholly-ownedSubsidiary | SecuritiesTimesB40,ShanghaiSecuritiesNews24etc. |
KonkaGroupCo.,Ltd.AnnualReport2020
| 2020-21 | 2020-4-14 | AnnouncementonExpirationofFinancialAidsofRMB8.9milliontoChongqingQingjia | SecuritiesTimesB18,ShanghaiSecuritiesNews81etc. |
| 2020-22 | 2020-4-15 | Announcementonthe2019EarningsForecasts | SecuritiesTimesB214,ShanghaiSecuritiesNews249etc. |
| 2020-23 | 2020-4-15 | Announcementonthe2020FirstQuarterEarningsForecasts | SecuritiesTimesB214,ShanghaiSecuritiesNews249etc. |
| 2020-24 | 2020-4-22 | AnnouncementontheResolutionofthe6thMeetingofthe9thSupervisoryCommittee | SecuritiesTimesB226,ShanghaiSecuritiesNewsetc. |
| 2020-25 | 2020-4-22 | AnnouncementontheExpectationofthe2020RoutineRelatedTransaction | SecuritiesTimesB226,ShanghaiSecuritiesNewsetc. |
| 2020-26 | 2020-4-22 | AnnouncementonRevisingCorporateSystemssuchasArticlesofAssociations,etc. | SecuritiesTimesB225,ShanghaiSecuritiesNewsetc. |
| 2020-27 | 2020-4-22 | AnnouncementonAppointmentoftheAuditorforFinancialStatementsandInternalControlin2020 | SecuritiesTimesB226,ShanghaiSecuritiesNewsetc. |
| 2020-28 | 2020-4-22 | AnnouncementontheChangesofPartofAccountingPolicies | SecuritiesTimesB226,ShanghaiSecuritiesNewsetc. |
| 2020-29 | 2020-4-22 | AnnouncementonPlanofProfitDistributionfor2019 | SecuritiesTimesB226,ShanghaiSecuritiesNewsetc. |
| 2020-30 | 2020-4-22 | 2019AnnualReport | |
| 2020-31 | 2020-4-22 | Abstractofthe2019AnnualReport | SecuritiesTimesB225,ShanghaiSecuritiesNewsetc. |
| 2020-32 | 2020-4-22 | AnnouncementonAssetsImpairmentProvisionin2019 | SecuritiesTimesB226,ShanghaiSecuritiesNewsetc. |
| 2020-33 | 2020-4-22 | AnnouncementontheResolutionofthe25thMeetingofthe9thBoardofDirectors | SecuritiesTimesB226,ShanghaiSecuritiesNewsetc. |
| 2020-34 | 2020-4-22 | NoticeonConveningthe2019AnnualGeneralMeeting | SecuritiesTimesB226,ShanghaiSecuritiesNewsetc. |
| 2020-35 | 2020-4-30 | Textofthe2020FirstQuarterReport | SecuritiesTimes,ShanghaiSecuritiesNews609etc. |
| 2020-36 | 2020-4-30 | 2020FirstQuarterReport | |
| 2020-37 | 2020-5-13 | AnnouncementonOfferingGuaranteesbytheMajority-ownedSubsidiarytoitsMajority-ownedSubsidiary | SecuritiesTimesB56,ShanghaiSecuritiesNews108etc. |
| 2020-38 | 2020-5-15 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB24,ShanghaiSecuritiesNews64etc. |
| 2020-39 | 2020-5-15 | IndicativeAnnouncementonDo’sandDon’tsforParticipatingintheAnnualGeneralMeetingof2019 | SecuritiesTimesB24,ShanghaiSecuritiesNews64etc. |
KonkaGroupCo.,Ltd.AnnualReport2020
| duringthePeriodoftheEpidemicPreservationandControl | |||
| 2020-40 | 2020-5-19 | AnnouncementonResolutionsofthe2019AnnualGeneralMeeting | SecuritiesTimesB87,ShanghaiSecuritiesNews25etc. |
| 2020-41 | 2020-5-23 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB58,ShanghaiSecuritiesNews49etc. |
| 2020-42 | 2020-5-23 | AnnouncementontheResolutionofthe27thMeetingofthe9thBoardofDirectors | SecuritiesTimesB58,ShanghaiSecuritiesNews49etc. |
| 2020-43 | 2020-5-23 | AnnouncementonTerminatingPrivatePlacementofA-Shares | SecuritiesTimesB58,ShanghaiSecuritiesNews49etc. |
| 2020-44 | 2020-5-23 | AnnouncementontheCompanySigningwiththeSubscriptionObjecta‘TerminationContractfortheShareSubscriptionAgreementwithConditionalEntryintoForce’andRelated-partyTransaction | SecuritiesTimesB58,ShanghaiSecuritiesNews49etc. |
| 2020-45 | 2020-5-23 | AnnouncementontheResolutionofthe8thMeetingofthe9thSupervisoryCommittee | SecuritiesTimesB58,ShanghaiSecuritiesNews49etc. |
| 2020-46 | 2020-6-5 | AnnouncementonSigningProjectCooperativeAgreementwithMunicipalGovernmentofXinxiang | SecuritiesTimesB45,ShanghaiSecuritiesNews100etc. |
| 2020-47 | 2020-6-6 | AnnouncementonPlanofPrivatePlacementofCorporateBonds | SecuritiesTimesB74,ShanghaiSecuritiesNews65etc. |
| 2020-48 | 2020-6-6 | AnnouncementonProvidingAdvertisingServicestoOCTGroupandRelated-partyTransaction | SecuritiesTimesB74,ShanghaiSecuritiesNews65etc. |
| 2020-49 | 2020-6-6 | AnnouncementontheTransferof34%EquityofNanjingK-StarScienceandTechnologyIndustryParkOperationandManagementCo.,Ltd.andRelated-partyTransaction | SecuritiesTimesB75,ShanghaiSecuritiesNews65etc. |
| 2020-50 | 2020-6-6 | NoticeonConveningthe1stExtraordinaryGeneralMeetingof2020 | SecuritiesTimesB74,ShanghaiSecuritiesNews65etc. |
| 2020-51 | 2020-6-6 | AnnouncementonConstructingtheManufacturingBaseofKonkaSmartTerminalforExportbyInvestments | SecuritiesTimesB74,ShanghaiSecuritiesNews65etc. |
| 2020-52 | 2020-6-6 | AnnouncementonOfferingGuaranteeLimittotheJointStockCompaniesandRelated-partyTransactions | SecuritiesTimesB74,ShanghaiSecuritiesNews65etc. |
| 2020-53 | 2020-6-6 | AnnouncementonExternalGuarantees | SecuritiesTimesB74,ShanghaiSecuritiesNews65etc. |
| 2020-54 | 2020-6-6 | AnnouncementontheResolutionofthe28thMeetingofthe9thBoardofDirectors | SecuritiesTimesB74,ShanghaiSecuritiesNews65etc. |
| 2020-55 | 2020-6-12 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesA41,ShanghaiSecuritiesNews60etc. |
| 2020-56 | 2020-6-16 | AnnouncementonReceivingtheNoticeonTerminating | SecuritiesTimesB84,Shanghai |
KonkaGroupCo.,Ltd.AnnualReport2020
| theReviewoftheApplicationforAdministrationPermissionofChinaSecuritiesRegulatoryCommission | SecuritiesNews108etc. | ||
| 2020-57 | 2020-6-17 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB28,ShanghaiSecuritiesNews89etc. |
| 2020-58 | 2020-6-23 | AnnouncementonResolutionsofthe1stExtraordinaryGeneralMeetingof2020 | SecuritiesTimesB2,ShanghaiSecuritiesNews100etc. |
| 2020-59 | 2020-6-24 | AnnouncementontheResolutionofthe29thMeetingofthe9thBoardofDirectors | SecuritiesTimesB106,ShanghaiSecuritiesNews124etc. |
| 2020-60 | 2020-6-24 | AnnouncementonExtendingtheInvestmentTermofOrientKonkaIndustrialM&AFund | SecuritiesTimesB106,ShanghaiSecuritiesNews124etc. |
| 2020-61 | 2020-6-24 | AnnouncementontheTransferofSomePatentsinRelationtoCloudBigDataandRelated-partyTransaction | SecuritiesTimesB106,ShanghaiSecuritiesNews124etc. |
| 2020-62 | 2020-6-30 | AnnouncementonCompletingChangesofRegistrationfortheTransferof34%EquityofNanjingK-StarScienceandTechnologyIndustryParkOperationandManagementCo.,Ltd. | SecuritiesTimesB11,ShanghaiSecuritiesNews224etc. |
| 2020-63 | 2020-7-1 | AnnouncementofEquityAllocation2019 | SecuritiesTimesB112,ShanghaiSecuritiesNews108etc. |
| 2020-64 | 2020-7-1 | Announcementontheprogressoftransferringsomepatentsrelatedtocloudbigdata | SecuritiesTimesB124,ShanghaiSecuritiesNews108etc. |
| 2020-65 | 2020-7-1 | AnnouncementonReceivingGovernmentSubsidytotheMajority-ownedSubsidiary | SecuritiesTimesB124,ShanghaiSecuritiesNews108etc. |
| 2020-66 | 2020-7-3 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB34,ShanghaiSecuritiesNews108etc. |
| 2020-67 | 2020-7-10 | AnnouncementontheCompletionofRegistrationofPrivateFundofEmergingIndustrialDevelopmentInvestmentFundinitiatedbytheCompany | SecuritiesTimesB34,ShanghaiSecuritiesNews140etc. |
| 2020-68 | 2020-7-14 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB86,ShanghaiSecuritiesNews64etc. |
| 2020-69 | 2020-7-15 | Announcementonthe2020Semi-AnnualEarningsForecasts | SecuritiesTimesB26,ShanghaiSecuritiesNews108etc. |
| 2020-70 | 2020-7-21 | AnnouncementonResolutionsofthe30thMeetingofthe9thBoardofDirectors | SecuritiesTimesB11,ShanghaiSecuritiesNews121etc. |
| 2020-71 | 2020-7-21 | AnnouncementonTransferofPartialEquityinDongguanKonkaInvestmentbyListing | SecuritiesTimesB11,ShanghaiSecuritiesNews121etc. |
| 2020-72 | 2020-7-21 | NoticeonConveningthe2ndExtraordinaryGeneralMeetingof2020 | SecuritiesTimesB11,ShanghaiSecuritiesNews121etc. |
| 2020-73 | 2020-7-21 | AnnouncementonOfferingFinancialAidforDongguan | SecuritiesTimesB11,ShanghaiSecurities |
KonkaGroupCo.,Ltd.AnnualReport2020
| KonkaInvestmentBasedontheShareholdingRatio | News121etc. | ||
| 2020-74 | 2020-7-21 | AnnouncementonParticipatingintheEstablishmentofYibinKanghuiEmergingIndustryFund | SecuritiesTimesB11,ShanghaiSecuritiesNews121etc. |
| 2020-75 | 2020-7-21 | AnnouncementonInvestmentandConstructionofFrestecRefrigerationIndustrialPark | SecuritiesTimesB11,ShanghaiSecuritiesNews121etc. |
| 2020-76 | 2020-7-21 | AnnouncementontheTransferringSomePatentsinRelationtoIOT,SmartHealthandUHDDisplayTerminalsandRelated-partyTransactions | SecuritiesTimesB11,ShanghaiSecuritiesNews121etc. |
| 2020-77 | 2020-7-30 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSub-subsidiary | SecuritiesTimesB48,ShanghaiSecuritiesNews49etc. |
| 2020-78 | 2020-7-31 | AnnouncementonCapitalIncreaseofShenzhenKonkaCircuitCo.,Ltd.oftheWholly-ownedSubsidiary | SecuritiesTimesB28,ShanghaiSecuritiesNews105etc. |
| 2020-79 | 2020-7-31 | AnnouncementonResolutionsofthe31stMeetingofthe9thBoardofDirectors | SecuritiesTimesB28,ShanghaiSecuritiesNews105etc. |
| 2020-80 | 2020-8-7 | AnnouncementontheProgressofOfferingGuaranteestotheWholly-ownedSubsidiary | SecuritiesTimesB26,ShanghaiSecuritiesNews119etc. |
| 2020-81 | 2020-8-11 | AnnouncementonResignationofDirectorsoftheCompany | SecuritiesTimesB68,ShanghaiSecuritiesNews124etc. |
| 2020-82 | 2020-8-11 | AnnouncementonResolutionsofthe2ndExtraordinaryGeneralMeetingof2020 | SecuritiesTimesB68,ShanghaiSecuritiesNews124etc. |
| 2020-83 | 2020-8-18 | AnnouncementonCooperationFrameworkAgreementSignedwithYanchengGovernment | SecuritiesTimesB106,ShanghaiSecuritiesNews140etc. |
| 2020-84 | 2020-8-18 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB106,ShanghaiSecuritiesNews140etc. |
| 2020-85 | 2020-8-20 | AnnouncementonInvestmentAgreementSignedwithManagementCommitteeofYanchengHigh-techIndustrialDevelopmentZone | SecuritiesTimesB36,ShanghaiSecuritiesNews132etc. |
| 2020-86 | 2020-8-22 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB11,ShanghaiSecuritiesNews28etc. |
| 2020-87 | 2020-8-28 | AnnouncementonResolutionsofthe32ndMeetingofthe9thBoardofDirectors | SecuritiesTimesB315,ShanghaiSecuritiesNews305etc. |
| 2020-88 | 2020-8-28 | NoticeonConveningthe3rdExtraordinaryGeneralMeetingof2020 | SecuritiesTimesB315,ShanghaiSecuritiesNews305etc. |
| 2020-89 | 2020-8-28 | AnnouncementontheAcquisitionandStorageofSomeLandofFrestecHouseholdAppliances | SecuritiesTimesB315,ShanghaiSecuritiesNews305etc. |
| 2020-90 | 2020-8-28 | Semi-AnnualReport2020 | |
| 2020-91 | 2020-8-28 | SummaryofSemi-AnnualReport2020 | SecuritiesTimesB315,ShanghaiSecurities |
KonkaGroupCo.,Ltd.AnnualReport2020
| News305etc. | |||
| 2020-92 | 2020-8-29 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB70,ShanghaiSecuritiesNews140etc. |
| 2020-93 | 2020-9-2 | AnnouncementontheProgressofOfferingGuaranteestothewholly-ownedsubsidiary | SecuritiesTimesB45,ShanghaiSecuritiesNews105etc. |
| 2020-94 | 2020-9-10 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB15,ShanghaiSecuritiesNews105etc. |
| 2020-95 | 2020-9-15 | AnnouncementonResolutionsofthe3rdExtraordinaryGeneralMeetingof2020 | SecuritiesTimesB45,ShanghaiSecuritiesNews148etc. |
| 2020-96 | 2020-9-16 | AnnouncementonTransferofPartialEquityinChongqingKonkaRealEstateDevelopmentbyListing | SecuritiesTimesA32,ShanghaiSecuritiesNews92etc. |
| 2020-97 | 2020-9-19 | AnnouncementonPendingLawsuitsandArbitrationswithlargeamount | SecuritiesTimesB59,ShanghaiSecuritiesNews44etc. |
| 2020-98 | 2020-9-19 | AnnouncementontheProgressofTransferofPartialEquityinDongguanKonkaInvestmentbyListing | SecuritiesTimesB59,ShanghaiSecuritiesNews44etc. |
| 2020-99 | 2020-9-23 | AnnouncementonResolutionsofthe33thMeetingofthe9thBoardofDirectors | SecuritiesTimesB25,ShanghaiSecuritiesNews128etc. |
| 2020-100 | 2020-9-23 | AnnouncementonParticipatingintheEstablishmentofKonkaYanchengElectronicInformationIndustryFund | SecuritiesTimesB11,ShanghaiSecuritiesNews125etc. |
| 2020-101 | 2020-9-23 | AnnouncementonOfferingFinancialAidforChongqingKonkaFuzeBasedontheShareholdingRatio | SecuritiesTimesB25,ShanghaiSecuritiesNews128etc. |
| 2020-102 | 2020-9-23 | AnnouncementonParticipatingintheBiddingforSupportingLandofKonka(Chongqing)SemiconductorOptoelectronicIndustrialPark | SecuritiesTimesB25,ShanghaiSecuritiesNews128etc. |
| 2020-103 | 2020-9-26 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB15,ShanghaiSecuritiesNews28etc. |
| 2020-104 | 2020-9-26 | AnnouncementontheCompletionofRegistrationofPrivateFundofKonkaYanchengElectronicInformationIndustryFundestablishedbytheCompany | SecuritiesTimesB49,ShanghaiSecuritiesNews28etc. |
| 2020-105 | 2020-10-9 | AnnouncementonReceivingGovernmentSubsidytotheMajority-ownedSubsidiary | SecuritiesTimesB61,ShanghaiSecuritiesNews52etc. |
| 2020-106 | 2020-10-14 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB38,ShanghaiSecuritiesNews76etc. |
| 2020-107 | 2020-10-16 | ReminderAnnouncementonPlanningtoTransfer51%EquityInterestsofChuzhouKangxin | SecuritiesTimesB23,ShanghaiSecuritiesNews52etc. |
| 2020-108 | 2020-10-17 | AnnouncementonStrategicCooperationAgreementSignedwithCindaInvestment | SecuritiesTimesB20,ShanghaiSecuritiesNews20etc. |
KonkaGroupCo.,Ltd.AnnualReport2020
| 2020-109 | 2020-10-22 | AnnouncementontheCompletionofRegistrationofPrivateFundofYibinKanghuiEmergingIndustryFundestablishedbytheCompany | SecuritiesTimesB18,ShanghaiSecuritiesNews100etc. |
| 2020-110 | 2020-10-22 | AnnouncementontheReceiptofANo-ActionLetterthatMeetstheTransferConditionsofShenzhenStockExchangeforNon-PublicIssuanceofCorporateBondsIn2020 | SecuritiesTimesB69,ShanghaiSecuritiesNews100etc. |
| 2020-111 | 2020-10-24 | AnnouncementonExternalGuarantees | SecuritiesTimesB42,ShanghaiSecuritiesNews28etc. |
| 2020-112 | 2020-10-24 | NoticeonConveningthe4thExtraordinaryGeneralMeetingof2020 | SecuritiesTimesB42,ShanghaiSecuritiesNews28etc. |
| 2020-113 | 2020-10-24 | AnnouncementonResolutionsofthe34thMeetingofthe9thBoardofDirectors | SecuritiesTimesB42,ShanghaiSecuritiesNews28etc. |
| 2020-114 | 2020-10-24 | AnnouncementonTransfer51%EquityInterestsofChuzhouKangxinbyListing | SecuritiesTimesB42,ShanghaiSecuritiesNews28etc. |
| 2020-115 | 2020-10-24 | AnnouncementonOfferingFinancialAidforChuzhouKangxinBasedontheShareholdingRatio | SecuritiesTimesB42,ShanghaiSecuritiesNews28etc. |
| 2020-116 | 2020-10-31 | AnnouncementonProvisionforImpairmentofAssets | SecuritiesTimesB40,ShanghaiSecuritiesNews31etc. |
| 2020-117 | 2020-10-31 | TextoftheThirdQuarterReport2020 | SecuritiesTimesB40,ShanghaiSecuritiesNews31etc. |
| 2020-118 | 2020-10-31 | ThirdQuarterReport2020 | |
| 2020-119 | 2020-11-5 | AnnouncementontheProgressofOfferingGuaranteestotheWholly-ownedSubsidiary | SecuritiesTimesB31,ShanghaiSecuritiesNews68etc. |
| 2020-120 | 2020-11-10 | AnnouncementonResolutionsofthe4thExtraordinaryGeneralMeetingof2020 | SecuritiesTimesB40,ShanghaiSecuritiesNews32etc. |
| 2020-121 | 2020-11-12 | AnnouncementonCooperationFrameworkAgreementSignedwithManagementCommitteeofNanchangEconomicandTechnologicalDevelopmentZoneManagementCommittee | SecuritiesTimesA6,ShanghaiSecuritiesNews36etc. |
| 2020-122 | 2020-11-20 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSub-subsidiary | SecuritiesTimesB30,ShanghaiSecuritiesNews89etc. |
| 2020-123 | 2020-11-26 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB15,ShanghaiSecuritiesNews76etc. |
| 2020-124 | 2020-11-26 | AnnouncementontheProgressofTransferofPartialEquityinChongqingKonkaPropertyDevelopmentCo.,Ltd.byListing | SecuritiesTimesB30,ShanghaiSecuritiesNews76etc. |
| 2020-125 | 2020-12-1 | AnnouncementontheProgressofOfferingGuaranteesto | SecuritiesTimesB22,ShanghaiSecurities |
KonkaGroupCo.,Ltd.AnnualReport2020
| theMajority-ownedSubsidiary | News105etc. | ||
| 2020-126 | 2020-12-1 | AnnouncementonParticipatingintheOnlineCollectiveReceptionDayforInvestorsofListedCompaniesinthe"HonestyandTrustworthy,RespectfulListedCompany"inShenzhenAreain2020 | SecuritiesTimesB22,ShanghaiSecuritiesNews105etc. |
| 2020-127 | 2020-12-1 | AnnouncementonCompletingtheIndustrialandCommercialRegistrationofChangesforTransferofPartialEquityinChongqingKonkaRealEstateDevelopmentbyListing | SecuritiesTimesB35,ShanghaiSecuritiesNews105etc. |
| 2020-128 | 2020-12-1 | AnnouncementontheProgressofInvestmentandConstructionofAnEnvironmentalProtectionTechnologyTownProjectinYantai | SecuritiesTimesB17,ShanghaiSecuritiesNews105etc. |
| 2020-129 | 2020-12-16 | AnnouncementonResolutionsofthe36thMeetingofthe9thBoardofDirectors | SecuritiesTimesB77,ShanghaiSecuritiesNews89etc. |
| 2020-130 | 2020-12-16 | AnnouncementonParticipatingintheEstablishmentofChongqingKangxinSemiconductorIndustryFund | SecuritiesTimesB77,ShanghaiSecuritiesNews89etc. |
| 2020-131 | 2020-12-17 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSub-subsidiary | SecuritiesTimesB64,ShanghaiSecuritiesNews52etc. |
| 2020-132 | 2020-12-22 | AnnouncementontheProgressofTransfer51%EquityInterestsofChuzhouKangxinbyListing | SecuritiesTimesB39,ShanghaiSecuritiesNews105etc. |
| 2020-133 | 2020-12-23 | AnnouncementonMajority-ownedSubsidiary'sLoantoShareholdersBasedontheShareholdingRatio | SecuritiesTimesB65,ShanghaiSecuritiesNews81etc. |
| 2020-134 | 2020-12-23 | AnnouncementonResolutionsofthe37thMeetingofthe9thBoardofDirectors | SecuritiesTimesB65,ShanghaiSecuritiesNews81etc. |
| 2020-135 | 2020-12-25 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB18,ShanghaiSecuritiesNews76etc. |
| 2020-136 | 2020-12-26 | AnnouncementonReceivingGovernmentSubsidytotheMajority-ownedSubsidiary | SecuritiesTimesB77,ShanghaiSecuritiesNews97etc. |
| 2020-137 | 2020-12-30 | AnnouncementonReceivingGovernmentSubsidytotheWholly-ownedSubsidiary | SecuritiesTimesB68,ShanghaiSecuritiesNews124etc. |
| 2020-138 | 2021-1-4 | AnnouncementonApplicationforInitialPublicOfferingofSharesofJointStockCompaniesapprovedbyCSRCIssuanceExaminationCommittee | SecuritiesTimesB34,ShanghaiSecuritiesNews49etc. |
| 2020-139 | 2021-1-4 | AnnouncementontheCompletionofRegistrationofPrivateFundofKonkaYanchengElectronicInformationIndustryFundestablishedbytheCompany | SecuritiesTimesB35,ShanghaiSecuritiesNews49etc. |
XXSignificantEventsofSubsidiaries
□Applicable√Notapplicable
KonkaGroupCo.,Ltd.AnnualReport2020
PartVIShareChangesandShareholderInformationI.ShareChanges
1.ShareChanges
Unit:share
| Before | Increase/decreaseintheReportingPeriod(+/-) | After | |||||||
| Shares | Percentage(%) | Newissues | Sharesasdividendconvertedfromprofit | Sharesasdividendconvertedfromcapitalreserves | Other | Subtotal | Shares | Percentage(%) | |
| 1.Restrictedshares | 19,500 | 0.00% | 19,500 | 0.00% | |||||
| 1.3Sharesheldbyotherdomesticinvestors | 19,500 | 0.00% | 19,500 | 0.00% | |||||
| Sharesheldbydomesticnaturalpersons | 19,500 | 0.00% | 19,500 | 0.00% | |||||
| 2.Unrestrictedshares | 2,407,925,908 | 100.00% | 2,407,925,908 | 100.00% | |||||
| 2.1RMB-denominatedordinaryshares | 1,596,574,300 | 66.31% | 1,596,574,300 | 66.31% | |||||
| 2.2Domesticallylistedforeignshares | 811,351,608 | 33.69% | 811,351,608 | 33.69% | |||||
| 3.Totalshares | 2,407,945,408 | 100.00% | 2,407,945,408 | 100.00% | |||||
Reasonsforsharechanges:
□Applicable√NotapplicableApprovalofsharechanges:
KonkaGroupCo.,Ltd.AnnualReport2020
□Applicable√NotapplicableTransferofshareownership:
□Applicable√NotapplicableProgressonanysharerepurchases:
□Applicable√NotapplicableProgressonreducingtherepurchasedsharesbymeansofcentralizedbidding:
□Applicable√NotapplicableEffectsofsharechangesonthebasicanddilutedearningspershare,equitypershareattributabletotheCompany’sordinaryshareholdersandotherfinancialindicatorsoftheprioryearandtheprioraccountingperiod,respectively:
□Applicable√NotapplicableOtherinformationthattheCompanyconsidersnecessaryorisrequiredbythesecuritiesregulatortobedisclosed:
□Applicable√Notapplicable
2.ChangesinRestrictedShares
□Applicable√NotapplicableII.IssuanceandListingofSecurities
1.Securities(ExclusiveofPreferredShares)IssuedintheReportingPeriod
□Applicable√Notapplicable
2.ChangestoTotalShares,ShareholderStructureandAssetandLiabilityStructures
□Applicable√Notapplicable
3.ExistingStaff-HeldShares
□Applicable√NotapplicableIIIShareholdersandActualController
1.ShareholdersandTheirShareholdingsatthePeriod-End
Unit:share
| Numberofordinaryshareholders | 129,637 | Numberofordinaryshareholdersatthemonth-endpriortothedisclosureofthisReport | 122,570 | Numberofpreferredshareholderswithresumedvotingrights(ifany) | 0 | Numberofpreferredshareholderswithresumedvotingrightsatthemonth-endpriortothedisclosureofthisReport(ifany) | 0 | |||||||
| 5%orgreatershareholdersortop10shareholders | ||||||||||||||
| Nameofshareholder | Natureofshareholder | Shareholdingpercentage | Totalsharesheldattheperiod-end | Increase/decreaseintheReportingPeriod | Restrictedsharesheld | Unrestrictedsharesheld | Sharesinpledgeorfrozen | |||||||
| Status | Shares | |||||||||||||
KonkaGroupCo.,Ltd.AnnualReport2020
| OVERSEASCHINESETOWNENTERPRISESCO.,LTD | State-ownedlegalperson | 21.75% | 523,746,932 | 0 | 0 | 523,746,932 | ||
| CITICSECURITIESBROKERAGE(HONGKONG)CO.,LTD. | Foreignlegalperson | 7.56% | 182,100,202 | 0 | 0 | 182,100,202 | ||
| WANGJINGFENG | Domesticnaturalperson | 2.42% | 58,327,758 | 50,627,758 | 0 | 58,327,758 | ||
| GUOYUANSECURITIESBROKER(HK)CO.,LTD. | Foreignlegalperson | 2.41% | 58,100,325 | 3,896,546 | 0 | 58,100,325 | ||
| HOLYTIMEGROUPLIMITED | Foreignlegalperson | 2.38% | 57,289,100 | 1,150,000 | 0 | 57,289,100 | ||
| GAOLINGFUND,L.P. | Foreignlegalperson | 2.19% | 52,801,250 | 0 | 0 | 52,801,250 | ||
| NAMNGAI | Foreignnaturalperson | 0.94% | 22,567,540 | 1,360,200 | 0 | 22,567,540 | ||
| CHINAMERCHANTSSECURITIES(HK)LIMITED | State-ownedlegalperson | 0.81% | 19,490,320 | -3,503,704 | 0 | 19,490,320 | ||
| HaitongInternationalSecuritiesCompanyLimited-AccountClient | Foreignlegalperson | 0.50% | 12,146,654 | -1,675,500 | 0 | 12,146,654 | ||
| HongKongSecuritiesClearingCompanyLtd. | Foreignlegalperson | 0.47% | 11,329,823 | -10,027,602 | 0 | 11,329,823 | ||
| Strategicinvestororgenerallegalpersonbecomingatop-10ordinaryshareholderduetorightsissue(ifany)(seenote3) | N/A | |||||||
| Relatedoracting-in-concertpartiesamongtheshareholdersabove | HappyBloomInvestmentLimited,awholly-ownedsubsidiaryoftheCompany’sfirstmajorityshareholderOverseasChineseTownEnterprisesCo.(“OCTGroup”forshort),holds180,001,110and18,360,000ordinarysharesintheCompanyrespectivelythroughCITICSecuritiesBrokerage(HongKong)Co.,Ltd.andChinaMerchantsSecurities(HK)Limited.HappyBloomInvestmentLimitedandOverseasChineseTownEnterprisesCo.arepartiesactinginconcert.Otherthanthat,itisunknownwhethertheothershareholdersarerelatedpartiesoracting-in-concertpartiesornot. | |||||||
KonkaGroupCo.,Ltd.AnnualReport2020
| Aboveshareholdersinvolvedinentrusting/beingentrustedwithvotingrightsandgivingupvotingrights | N/A | |||||
| Top10unrestrictedshareholders | ||||||
| Nameofshareholder | Unrestrictedsharesheldattheperiod-end | Sharesbytype | ||||
| Type | Shares | |||||
| OVERSEASCHINESETOWNENTERPRISESCO.,LTD | 523,746,932 | RMB-denominatedordinarystock | 523,746,932 | |||
| CITICSECURITIESBROKERAGE(HONGKONG)CO.,LTD. | 182,100,202 | Domesticallylistedforeignstock | 182,100,202 | |||
| WANGJINGFENG | 58,327,758 | RMB-denominatedordinarystock | 58,327,758 | |||
| GUOYUANSECURITIESBROKER(HK)CO.,LTD. | 58,100,325 | Domesticallylistedforeignstock | 58,100,325 | |||
| HOLYTIMEGROUPLIMITED | 57,289,100 | Domesticallylistedforeignstock | 57,289,100 | |||
| GAOLINGFUND,L.P. | 52,801,250 | Domesticallylistedforeignstock | 52,801,250 | |||
| NAMNGAI | 22,567,540 | Domesticallylistedforeignstock | 22,567,540 | |||
| CHINAMERCHANTSSECURITIES(HK)LIMITED | 19,490,320 | Domesticallylistedforeignstock | 19,490,320 | |||
| HaitongInternationalSecuritiesCompanyLimited-AccountClient | 12,146,654 | Domesticallylistedforeignstock | 12,146,654 | |||
| HongKongSecuritiesClearingCompanyLtd. | 11,329,823 | RMB-denominatedordinarystock | 11,329,823 | |||
| Relatedoracting-in-concertpartiesamongtop10unrestrictedpublicshareholders,aswellasbetweentop10unrestrictedpublicshareholdersandtop10shareholders | HappyBloomInvestmentLimited,awholly-ownedsubsidiaryoftheCompany’sfirstmajorityshareholderOverseasChineseTownEnterprisesCo.(“OCTGroup”forshort),holds180,001,110and18,360,000commonsharesintheCompanyrespectivelythroughCITICSecuritiesBrokerage(HongKong)Co.,Ltd.andChinaMerchantsSecurities(HK)Limited.HappyBloomInvestmentLimitedandOverseasChineseTownEnterprisesCo.arepartiesactinginconcert.Otherthanthat,itisunknownwhethertheothershareholdersarerelatedpartiesoracting-in-concertpartiesornot. | |||||
KonkaGroupCo.,Ltd.AnnualReport2020
| Top10ordinaryshareholdersinvolvedinsecuritiesmargintrading(ifany)(seenote4) | WangJingfengholds58,327,758A-sharesintheCompanythroughhissecuritiesaccountforcustomercredittradingguaranteeinGuotaiJunanSecuritiesCo.,Ltd. |
Indicatebytickmarkwhetheranyofthetop10ordinaryshareholdersorthetop10unrestrictedordinaryshareholdersoftheCompanyconductedanypromissoryrepoduringtheReportingPeriod.
□Yes√NoNosuchcasesintheReportingPeriod.
2.ControllingShareholderNatureofthecontrollingshareholder:Controlledbyacentralstate-ownedlegalpersonTypeofthecontrollingshareholder:legalperson
| Nameofactualcontroller | Legalrepresentative/personincharge | Dateofestablishment | Unifiedsocialcreditcode | Principalactivity | |
| OverseasChineseTownEnterprisesCo. | DuanXiannian | 11November1985 | 91440300190346175T | Exportoftextile,lightindustrialproducts,etc;importofself-usedgoodsinShenzhen,mechanicalequipment,lightindustrialproducts,etc.asapprovedbytherelevantauthoritiesofShenzhen(underGovernmentDocumentJMB[92]WJMGTSZZNo.A19024);compensationtrade;investmentintourismandrelevantculturalindustry(includingartperformance,entertainmentandtheirservices,etc),industry,realestate,commerce&trade,packaging,decorationandinvestmentinprintingindustry.Theconvertofexportcommoditiesintodomesticsaleandthedomesticsalesofimportcommodities.Travelling,rentalofwarehouses,cultureandart,bondedwarehouseofcardonation,conventionandexhibitionservices(theprojectsinvolvedinlicensemanagementcanbeoperatedaftergettingtherelevantlicensefirst);salesofautomobile(sedancarincluded) | |
| Controllingshareholder’sholdingsinotherlistedcompaniesathomeorabroadintheReportingPeriod | Asof31December2020,OverseasChineseTownEnterprisesCo.directlyheld47.01%equityofShenzhenOverseasChineseTownCo.,Ltd.(acompanylistedinShenzhenStockExchange,SZ.000069)andindirectlyheld0.39%equityofShenzhenOverseasChineseTownCo.,Ltd.throughOCTCapitalInvestmentManagementCo.,Ltd.Meanwhile,ShenzhenOverseasChineseTownCo.,Ltd.indirectlyheld70.94%equityofOCT(Asia)HoldingsLtd.(acompanylistedonthemainBoardofHongKongStockExchange,3366.HK).OverseasChineseTownEnterprisesCo.indirectlyheld53.88%equityofYunnanTourismCo.,Ltd.(acompanylistedinShenzhenStockExchange,SZ.002059).OverseasChineseTownEnterprisesCo.held8%equityofChinaEverbrightBankCompanyLimited(acompanylistedonthemainBoardofShanghaiStockExchange(SH.601818)andthemainBoardofHongKongStockExchange(6818.HK).OverseasChineseTownEnterprisesCo.indirectlyheld2.74%equityofZhejiangCenturyHuatongGroupCo.,Ltd.(acompanylistedinShenzhenStockExchange,SZ.002602)throughitssubsidiaryShenzhenOCTCapitalInvestmentManagementCo.,Ltd.OverseasChineseTownEnterprisesCo.indirectlyheld11.12%ofequityofJiangsuGuoxinCorporationLimited(acompanylistedinShenzhenStockExchange,SZ.002608)throughitssubsidiaryShenzhenOCTCulturalGroupCo.,Ltd..OverseasChineseTownEnterprisesCo.indirectlyheld0.14%ofequityofYihaiKerryArawanaHoldingsCo.,Ltd(a | ||||
KonkaGroupCo.,Ltd.AnnualReport2020
ChangeofthecontrollingshareholderintheReportingPeriod:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
3.ActualControllerandItsActing-in-ConcertPartiesNatureoftheactualcontroller:Centralinstitutionforstate-ownedassetsmanagementTypeoftheactualcontroller:legalperson
companylistedonGEMofShenzhenStockExchange,SZ.300999)throughitssubordinateenterpriseShenzhenOCTCulturalIndustryEquityInvestmentParentFundPartnership(LimitedPartnership).Nameofactualcontroller
| Nameofactualcontroller | Legalrepresentative/personincharge | Dateofestablishment | Unifiedsocialcreditcode | Principalactivity |
| State-ownedAssetsSupervisionandAdministrationCommissionoftheStateCouncil | HaoPeng | Notapplicable | Notapplicable | |
| Actualcontroller’sholdingsinotherlistedcompaniesathomeorabroadintheReportingPeriod | Notapplicable | |||
ChangeoftheactualcontrollerduringtheReportingPeriod:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.OwnershipandcontrolrelationsbetweentheactualcontrollerandtheCompany:
IndicatebytickmarkwhethertheactualcontrollercontrolstheCompanyviatrustorotherwaysofassetmanagement.
□Applicable√Notapplicable
4.Other10%orGreaterCorporateShareholders
□Applicable√Notapplicable
KonkaGroupCo.,Ltd.AnnualReport2020
5.LimitationsonShareholdingDecreasebytheCompany’sControllingShareholder,ActualController,ReorganizerandOtherCommitmentMakers
□Applicable√Notapplicable
KonkaGroupCo.,Ltd.AnnualReport2020
PartVIIPreferredShares
□Applicable√NotapplicableNopreferredsharesintheReportingPeriod.
KonkaGroupCo.,Ltd.AnnualReport2020
PartVIIIConvertibleCorporateBonds
□Applicable√NotapplicableNoconvertiblecorporatebondsintheReportingPeriod.
KonkaGroupCo.,Ltd.AnnualReport2020
PartIXDirectors,Supervisors,SeniorManagementandStaff
IChangeinShareholdingsofDirectors,SupervisorsandSeniorManagement
| Name | Officetitle | Incumbent/Former | Gender | Age | Startoftenure | Endoftenure | Beginningshareholding | IncreaseintheReportingPeriod | DecreaseintheReportingPeriod | Otherincrease/decrease | Endingshareholding |
| LiuFengxi | Director,ChairmanoftheBoard | Incumbent | Male | 49 | 3December2018 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
| YaoWei | Director | Incumbent | Male | 46 | 14September2020 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
| ZhangJing | Director | Incumbent | Male | 39 | 3December2018 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
| ZhouBin | Director | Incumbent | Male | 42 | 3December2018 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
| SunShengdian | Independentdirector | Incumbent | Male | 66 | 3December2018 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
| WangShuguang | Independentdirector | Incumbent | Male | 50 | 3December2018 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
| DengChunhua | Independentdirector | Incumbent | Female | 58 | 3December2018 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
| CaiWeibin | Supervisor,chairmanoftheSupervisoryCommittee | Incumbent | Male | 48 | 15March2021 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
KonkaGroupCo.,Ltd.AnnualReport2020
| YangGuobin | Supervisor | Incumbent | Male | 52 | 3December2018 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
| LiJun | Supervisor | Incumbent | Male | 50 | 29November2018 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
| ZhouBin | President | Incumbent | Male | 42 | 27March2020 | 27March2023 | 0 | 0 | 0 | 0 | 0 |
| LiHongtao | Vicepresident | Incumbent | Male | 53 | 27March2020 | 27March2023 | 0 | 0 | 0 | 0 | 0 |
| WuYongjun | BoardSecretary | Incumbent | Male | 46 | 27March2020 | 27March2023 | 0 | 0 | 0 | 0 | 0 |
| LiChunlei | CFO | Incumbent | Male | 48 | 27March2020 | 27March2023 | 0 | 0 | 0 | 0 | 0 |
| YangBo | Vicepresident | Incumbent | Male | 51 | 27March2020 | 27March2023 | 0 | 0 | 0 | 0 | 0 |
| CaoShiping | Vicepresident | Incumbent | Male | 43 | 27March2020 | 27March2023 | 0 | 0 | 0 | 0 | 0 |
| SunQingyan | Vicepresident | Incumbent | Male | 49 | 27March2020 | 27March2023 | 26,000 | 0 | 0 | 0 | 26,000 |
| HeHaibin | Director | Former | Male | 47 | 3December2018 | 10August2020 | 0 | 0 | 0 | 0 | 0 |
| WangYoulai | Supervisor,chairmanoftheSupervisoryCommittee | Former | Male | 60 | 3December2018 | 15March2021 | 0 | 0 | 0 | 0 | 0 |
| HeJianjun | Vicepresident | Former | Male | 51 | 10March2017 | 13January2020 | 0 | 0 | 0 | 0 | 0 |
| Total | - | - | - | - | - | - | 26,000 | 0 | 0 | 0 | 26,000 |
KonkaGroupCo.,Ltd.AnnualReport2020
IIChangeofDirectors,SupervisorsandSeniorManagement
√Applicable□Notapplicable
| Name | Officetitle | Typeofchange | Dateofchange | Reasonforchange |
| HeJianjun | Vicepresident | Expired | 13January2020 | Resignforjobchange |
| HeHaibin | Director | Expired | 10August2020 | Resignforjobchange |
| WangYoulai | Supervisor,chairmanoftheSupervisoryCommittee | Expired | 15March2021 | Resignforjobchange(retirement) |
| YaoWei | Director | Appoint | 14September2020 | Electedasadirectorbythegeneralmeetingofshareholders |
| CaiWeibin | Supervisor | Appoint | 15March2021 | Electedasasupervisorbythegeneralmeetingofshareholders |
| CaiWeibin | chairmanoftheSupervisoryCommittee | Appoint | 15March2021 | Thechairmanoftheboardofsupervisorsiselectedbytheboardofsupervisors |
IIIBiographicalInformationProfessionalbackgrounds,majorworkexperienceandcurrentdutiesintheCompanyoftheincumbentdirectors,supervisorsandseniormanagement:
1.DirectorLiuFengxi,male,ethnicgroupofHan,bornin1972,wastheChairmanoftheBoardwithamasterdegree.HeonceworkedasthemarketingGMforthemulti-mediadivisionofKonkaGroup,AssistantGMandthenViceGMofShenzhenKonkaTelecommunicationsTechnologyCo.,Ltd.,ChiefoftheOperationManagementCenterofKonkaGroup,AssistanttoPresidentandVicePresidentofKonkaGroup,etc.AndnowheisactingasthememberoftheStandingCommitteeandDeputyGMofOCTGroup,DirectorandGMofShenzhenKonkaHoldingGroupCo.,Ltd.aswellastheBoardChairmanandCEOofKonkaGroup.YaoWei,Director,male,ethnicgroupofHan,bachelordegree,wasbornin1975.HeonceservedasChiefAccountantinCGNWindPowerCo.,Ltd.,ChiefAccountantinCGNNewEnergyHoldingsCo.,Ltd.,ViceGM(incharge)ofFinancialDepartment,GMofFinancialDepartment,GMofFinanceandAssetManagementDepartmentinChinaGeneralNuclearPowerCorporation.Currently,heactsasthememberoftheStandingCommitteeandChiefAccountantinOverseasChineseTownEnterprisesCo.andDirectorofKonkaGroup.ZhangJing,Director,male,ethnicgroupofHan,wasbornin1982,MBA.HeservedasManagerof
KonkaGroupCo.,Ltd.AnnualReport2020
theCEO’sOfficeinOCTGroup,SeniorManageroftheStrategicDevelopmentDepartmentinShenzhenOCTCo.,Ltd.,amemberofthePreparatoryWorkGroupofQingdaoOCT,DirectoroftheAdministrationDepartment(DeputyDirectorofthePartyCommitteeOffice)inShenzhenOCTPropertiesCo.,Ltd.,DeputyDirectorandDirectoroftheStrategicDevelopmentDepartmentinShenzhenOCTCo.,Ltd.,GeneralManageroftheStrategicPlanningDepartmentinOCTGroup,GeneralManageroftheCorporateManagementDepartmentinOCTGroup,andDirectoroftheCorporateManagementDepartmentinShenzhenOCTCo.,Ltd..Currently,heservesasExecutiveDeputyGeneralManagerofOCTWestInvestmentCo.,Ltd.,ExecutiveDirector&GMofOCT(Xi'an)DevelopmentCo.,Ltd.,Director&GeneralManagerofXi’anFengdongOCTDevelopmentCo.,Ltd.,DirectorofOCT(Yunnan)InvestmentCo.,Ltd.,andDirectorofKonkaGroup.ZhouBin,male,ethnicgroupofHan,bornin1979,wasthedirectorandpresidentoftheCompanywithabachelordegree.Heonceservedasthedirectorassistant,deputydirectoranddirectorinOperatingManagementCenterinKonkaGroup,assistantofthepresidentintheBoardofDirectors&DirectorinOperatingManagementCenterinKonkaGroupandPresidentofKonkaGroup.Now,heactsasthedirectorandpresidentinKonkaGroup,directorinShenzhenKonkaHoldingGroupCo.,Ltd.
2.IndependentDirectorSunShengdian,amalesenioreconomist,ethnicgroupofHan,bornin1955,wastheindependentdirectoroftheCompanywithadoctordegreeinengineering.FormerlyviceGM,deputysecretaryofthePartycommittee,GMandpresidentofShenzhenSEG,HitachiColorDisplayDevicesCo.,Ltd.,president,secretaryofPartyCommitteeofShenzhenSEGGroupCo.,Ltd.directorofShenzhenChinaStarOptoelectronicsTechnologyCo.,Ltd.,independentdirectorofSkyworthHoldingLtd.,thevicepresidentofShenzhenHuakongSEGCo.,Ltd.,andtheheadofShenzhenElectronicsIndustriesAssociation.Now,heservesastheindependentdirectorofKonkaGroup.WangShuguang,IndependentDirector,male,ethnicgroupofHan,wasbornin1971,PhDineconomics,professoranddoctoralsupervisor.HeservedasIndependentDirectorofYantaiRuralCommercialBank,JinanRuralCommercialBank,NingboYuyaoRuralCommercialBankandSDICZhonglu,andExternalSupervisorandConveneroftheBoardofSupervisorsofIndustrialBankCo.,Ltd.Currently,heservesasProfessorandDoctoralSupervisorintheSchoolofEconomicsofPekingUniversity,ExecutiveDeputyDirectoroftheInstituteforCulturalIndustries,PekingUniversityandIndependentDirectorofKonkaGroup.DengChunhua,IndependentDirector,female,ethnicgroupofHan,bornin1963,MBA,professor
KonkaGroupCo.,Ltd.AnnualReport2020
andmaster’ssupervisorofaccounting,CertifiedPublicAccountantinChina(non-practicingmember).SheservedasChiefAccountantandProjectManagerofWUYIGECertifiedPublicAccountsLLP,ZhongnanUniversityofEconomicsandLaw,MemberoftheFifthSessionoftheCorporateSpecialCommitteeoftheChineseAssociationofQuantitativeEconomicsandMemberoftheProfessionalJuryCommitteeofHubeiAdministrationofSport.FromJuly1984tillnow,shehasbeenteachingintheSchoolofAccountingofZhongnanUniversityofEconomicsandLawasAssistantLecturer,Lecturer,AssociateProfessorandProfessor.Currently,sheservesasIndependentDirectorofZhejiangGoldenseaHiTechCo.,Ltd,IndependentDirectorofZhejiangJinkeCultureIndustryCo.,Ltd.,IndependentDirectorofWolongElectricGroupCo.,Ltd.andIndependentDirectorofKonkaGroup.
3.SupervisorCaiWeibin,ChairmanoftheSupervisoryCommittee,male,ethnicgroupofHan,Master’sDegree,wasbornin1973.HeonceservedasviceGM,deputysecretaryofthePartyCommitteeandSecretaryofCommitteeforDisciplineInspectioninChongqingOCTIndustryDevelopmentCo.,Ltd.ViceMinisterofDisciplineInspectionandSupervisionandDirectoroftheDisciplineInspectionOfficeinOverseasChineseTownEnterprisesCo.Currently,heactsasGMofLegalComplianceDepartmentinOverseasChineseTownEnterprisesCo.andChairmanoftheSupervisoryCommitteeofKonkaGroup.YangGuobin,Supervisor,male,wasbornin1969,Bachelor’sDegree,CertifiedPublicAccountant.HeservedasDeputyDirectoroftheFinanceDepartmentofOCTGroup,CFOofKonkaGroupandDeputyDirectoroftheCorporateManagementDepartmentofOCTGroup.Currently,heservesasafull-timeDirectorinOCTGroup,DirectorofShenzhenGuangmingGroupandSupervisorofKonkaGroup.LiJun,male,ethnicgroupofHan,bornin1971,memberofCommunistParty,wasanemployeesupervisoroftheCompanywithabachelordegree.FormerlyworkedasthefinancialmanagerofNanchangBranchofTelecommunicationsTechnologyCo.,Ltd.,SeniorManageroftheFinancialDepartmentinTelecommunicationsTechnologyCo.,Ltd.,theSeniorManagerandassistanttothechiefanddeputydirectorofAuditingandLegalAffairsDepartmentinKonkaGroup,leaderofdisciplineinspectioncommissionofKonkaGroup,andemployeesupervisorofthe8
thSupervisoryCommitteeofKonkaGroup.PresentlyworkingasthedeputysecretaryofdisciplineinspectioncommissionofKonkaGroup,Generalcounsel,thedirectorofDisciplineinspectionandSupervisionCenter,ChiefoftheAuditingandLegalAffairsDepartment.
4.SeniorExecutive
KonkaGroupCo.,Ltd.AnnualReport2020
ZhouBin,male,ethnicgroupofHan,bornin1979,wasthedirectorandpresidentoftheCompanywithabachelordegree.Heonceservedasthedirectorassistant,deputydirectoranddirectorinOperatingManagementCenterinKonkaGroup,assistantofthepresidentintheBoardofDirectors&DirectorinOperatingManagementCenterinKonkaGroupandpresidentofKonkaGroup.HeiscurrentlyadirectorofShenzhenKonkaHoldingsGroupCo.,Ltd.,adirectorandpresidentofKonkaGroup.LiHongtao,male,Hannationality,bornin1968,wasthevicepresidentoftheCompanywithabachelordegree.HesuccessivelytookthepostsuchasAssistanttoGM,GM,ChairmanoftheBoardandGMofShenzhenKonkaTelecommunicationTechnologyCo.,LtdandAssistanttoPresidentandvicepresidentofKonkaGroupetc.HenowisactingasVicePresidentofKonkaGroup.WuYongjun,male,Hannationality,bornin1975,wastheBoardSecretarywithamasterdegree.FormerlyheworkedastheseniormanagerofSecretariat,assistanttothechief,vicechief,chief,SecuritiesAffairsrepresentativeandBoardSecretaryinKonkaGroup.PresentlyheisworkingasthesecretaryoftheboardofdirectorsofKonkaGroup.LiChunlei,male,Hannationality,bornin1973,wastheCFOoftheCompanywithamasterdegree.OnceservedasthedirectorinRealEstateBusinessDivisioninKonkaGroup,viceGMandGMinKunshanKangshengInvestmentDevelopmentCo.,Ltd.,deputydirector(presidethework)anddirectorinStrategicDevelopmentCenter,GMinFinancialCenterandGMinAssetSettlementCenterandCFOofKonkaGroup.nowheactsastheCFOinKonkaGroup.YangBo,male,Hannationality,bornin1970,wasthevicepresidentoftheCompanywithamasterdegree.OnceservedasthedirectorinShenzhenCableTelevisionEducationFinancialChannel,directorinthemarketsalesandsupportregionofUSTailiyangCommunicationsCompany,GMinProgramOperatingDepartmentinShenzhenTopwayVideoCommunicationCo.,Ltd.,directorandGMinShenzhenTianhuaCenturyMediaCo.,Ltd.,GMinMarketSalesCenterinShenzhenTopwayVideoCommunicationCo.,Ltd.andvicepresidentofKonkaGroup.NowheactsasthevicepresidentinKonkaGroup.CaoShiping,male,Hannationality,bornin1978,wasthevicepresidentoftheCompanywithamasterdegree.OnceservedastheGMinJinzhouBranchandTianjinBranchofKonkaGroupMulti-media,GMinMulti-mediaBusinessDivisionCustomerCooperationDepartment,viceGMinMulti-mediaMarketingBusinessDivision,viceGMinMulti-mediaBusinessDivisionandGMinMarketingCenter,GMinMulti-mediaBusinessDivision,GMinInternetBusinessDivisionandvicepresidentofKonkaGroup.NowheactsasthevicepresidentinKonkaGroup.SunQingyan,amalesenioreconomist,Hannationality,bornin1972,wasthevicepresidentoftheCompanywithadoctordegree.OnceservedasthetutorinNortheastUniversityofFinanceandEconomies,viceGMinShenzhenHuaixinEnterpriseInvestmentConsultingCo.,Ltd.,CEOin
KonkaGroupCo.,Ltd.AnnualReport2020
ShenzhenXinhengLidaCapitalManagementCo.,Ltd.,viceGMinShanyingInvestmentManagementCo.,Ltd.,GMinShenzhenShenwoAssetManagementCo.,Ltd.andvicepresidentofKonkaGroup.HenowactsasthevicepresidentofKonkaGroup.Officesheldconcurrentlyinshareholdingentities:
√Applicable□Notapplicable
| Name | Shareholdingentity | Officeheldintheshareholdingentity | Startoftenure | Endoftenure | Remunerationorallowancefromtheshareholdingentity | |
| LiuFengxi | OCTGroup | PartyCommitteeStandingCommitteeandviceGM | 22February2016 | Yes | ||
| LiuFengxi | ShenzhenKonkaHoldingGroupCo.,Ltd. | DirectorandGM | 14April2020 | |||
| YaoWei | OCTGroup | PartyCommitteeStandingCommitteeandChiefAccountant | July2020 | Yes | ||
| ZhangJing | OCT(Yunnan)InvestmentCo.,Ltd | Director | 18January2018 | |||
| ZhangJing | OCTWestInvestmentCo.,Ltd. | DeputyGeneralManager | 14March2019 | Yes | ||
| ZhangJing | Xi’anFengdongOCTDevelopmentCo.,Ltd | Director,GM | 14March2019 | |||
| ZhangJing | OCT(Xi'an)DevelopmentCo.,Ltd | ExecutiveDirector,GM | 9August2019 | |||
| ZhouBin | ShenzhenKonkaHoldingGroupCo.,Ltd. | Director9 | 14April2020 | |||
| CaiWeibin | OCTGroup | GMofLegalComplianceDepartment | December2020 | Yes | ||
| YangGuobin | OCTGroup | Full-timedirectorinBoardOffice | 7March2018 | Yes | ||
| Notes | 1.Excepttheabovesituation,otherdirectors,supervisorsandseniormanagementdidn’tholdanypositionintheshareholders’units.2.ItisunknowntheendingdateofthepostsofMr.LiuFengxi,Mr.YaoWei,Mr.ZhangJing,Mr.CaiWeibin,Mr.ZhouBinandMr.yangGuobinheldintheshareholders’units. | |||||
Officesheldconcurrentlyinotherentities:
√Applicable□Notapplicable
KonkaGroupCo.,Ltd.AnnualReport2020
| Name | Otherentity | Officeheldintheentity | Startoftenure | Endoftenure | Remunerationorallowancefromtheentity |
| WangShuguang | SchoolofEconomicsofPekingUniversity | Professor | Yes | ||
| WangShuguang | InstituteforCulturalIndustriesofPekingUniversity | Deputydirector | |||
| DengChunhua | ZhongnanUniversityofEconomicsandLaw | Professor | Yes | ||
| DengChunhua | ZhejiangGoldenseaHiTechCo.,Ltd | Independentdirector | 15May2019 | Yes | |
| DengChunhua | ZhejiangJinkeCultureIndustryCo.,Ltd. | Independentdirector | Yes | ||
| DengChunhua | WolongElectricGroupCo.,Ltd. | Independentdirector | Yes |
Punishmentsimposedintherecentthreeyearsbythesecuritiesregulatorontheincumbentdirectors,supervisorsandseniormanagementaswellasthosewholeftintheReportingPeriod:
□Applicable√NotapplicableIVRemunerationofDirectors,SupervisorsandSeniorManagementDecision-makingprocedure,determinationbasisandactualpaymentsofremunerationfordirectors,supervisorsandseniormanagement:
ThesalaryofdirectorsandsupervisorsoftheCompanyshouldbesubmittedtotheshareholdersmeetingforreviewaftertheapprovalandconsentbytheBoardofdirectors.ReferredtothesalaryleveloftheDirectorsandSupervisorofthedomesticlistedcompaniesofsameindustry,thesalaryproposaloftheDirectorandSupervisorsoftheCompanywhichapprovedandreviewedbythe2
nd
ExtraordinaryGeneralMeetingof2015wereasfollows:(1)thebasicannualsalarystandardoftheBoardChairmanwasofRMB1.2million,thesubsidystandardofotherDirectors(excludingtheDirectorsservingintheCompany)wasofRMB0.3millionperpersonperyearandthesubsidystandardoftheSupervisors(excludingtheEmployeeSupervisors)wasofRMB0.2millionperpersonperyear;whichwasexecutedsinceJune2015.(2)theabovestandardswereallpre-taxstandardwiththeindividualincometaxburdenedinpersonaswellastheCompanywithheldandremittedtax.
KonkaGroupCo.,Ltd.AnnualReport2020
Othertreatmentforindependentdirectors:travelexpensewhentheywenttoattendtheBoardsessions,SupervisorysessionsorShareholders’GeneralMeetingsandtheexpenseswhentheywereperformingtheirdutiesasstipulatedintherelevantregulationsandtheArticlesofAssociationandotherrelevantsystems,allthesecouldbereportedfordeletion.TheBoardofDirectorsdeterminedtheremunerationofseniormanagementstaffsreferringtothefollowingfactors:a.scopeofjobsandresponsibilityshouldered;b.actualprofitoftheCompany;c.marketremunerationlevelinthesameindustryandsamearea.Remunerationofthedirectors,supervisorsandseniormanagementoftheCompanyduringtheReportingPeriod
Unit:RMB'0,000
| Name | Officetitle | Gender | Age | Incumbent/Former | Totalbefore-taxremunerationfromtheCompany | Anyremunerationfromrelatedparty |
| LiuFengxi | ChairmanoftheBoardandCEO | Male | 49 | Incumbent | Yes | |
| YaoWei | Director | Male | 46 | Incumbent | Yes | |
| ZhangJing | Director | Male | 39 | Incumbent | Yes | |
| ZhouBin | Directorandpresident | Male | 42 | Incumbent | 613.46 | No |
| SunShengdian | Independentdirector | Male | 66 | Incumbent | 30 | No |
| WangShuguang | Independentdirector | Male | 50 | Incumbent | 30 | No |
| DengChunhua | Independentdirector | Female | 58 | Incumbent | 30 | No |
| CaiWeibin | ChairmanoftheSupervisoryCommittee | Male | 48 | Incumbent | Yes | |
| YangGuobin | Supervisor | Male | 52 | Incumbent | Yes | |
| LiJun | Employeesupervisor | Male | 50 | Incumbent | 139.23 | No |
| LiHongtao | Vicepresident | Male | 53 | Incumbent | 303.47 | No |
| WuYongjun | Boardsecretary | Male | 46 | Incumbent | 312.29 | No |
| LiChunlei | CFO | Male | 48 | Incumbent | 347.14 | No |
| YangBo | Vicepresident | Male | 51 | Incumbent | 296.26 | No |
| Cao | Vicepresident | Male | 43 | Incumbent | 327.07 | No |
KonkaGroupCo.,Ltd.AnnualReport2020
| Shiping | ||||||
| SunQingyan | Vicepresident | Male | 49 | Incumbent | 292.28 | No |
| HeHaibin | Director | Male | 47 | Former | Yes | |
| WangYoulai | ChairmanoftheSupervisoryCommittee | Male | 60 | Former | Yes | |
| HeJianjun | Vicepresident | Male | 51 | Former | 232.67 | Yes |
Equityincentivesfordirectors,supervisorsandseniormanagementintheReportingPeriod:
□Applicable□NotapplicableVEmployees
1.Number,FunctionsandEducationalBackgroundsofEmployees
| Numberofin-serviceemployeesoftheCompanyastheparent | 1,776 |
| Numberofin-serviceemployeesofmajorsubsidiaries | 15,440 |
| Totalnumberofin-serviceemployees | 17,216 |
| TotalnumberofpaidemployeesintheReportingPeriod | 17,216 |
| NumberofretireestowhomtheCompanyastheparentoritsmajorsubsidiariesneedtopayretirementpensions | 0 |
| Functions | |
| Function | Employees |
| Production | 9,118 |
| Sales | 4,461 |
| Technical | 1,504 |
| Financial | 686 |
| Administrative | 1,447 |
| Total | 17,216 |
| Educationalbackgrounds | |
| Educationalbackground | Employees |
| Masterandabove | 309 |
| Bachelor | 3,061 |
| Juniorcollege | 4,966 |
| Highschoolandbelow | 8,880 |
| Total | 17,216 |
2.EmployeeRemunerationPolicyTheCompanypromulgateditsremunerationsystemwiththeoperatingstrategyofservingfortheenterprisedevelopmentandenhancement,andtheprincipleofdecidingtheremunerationaccording
KonkaGroupCo.,Ltd.AnnualReport2020
tothepost,businessperformanceandcapabilities,aswellasthemarketcompetitivenessandinternalfairness.Anditdecidedtheemployee’sremunerationlevelaccordingtoitsbusinessearnings,thepostsandfulfillmentofthebusinessperformanceoftheemployee.
3.EmployeeTrainingPlansTheCompanyadheredtothepeople-orientedandpaidspecialattentiontocultivatethetalents.Surroundedbythebusinessdevelopmentandtheconstructionoftalentteam,theCompanyactivelyorganizedandcarriedoutvarioustrainingactivities,andcontinuouslyperfecteditstalentscultivationsystem,aswellasfurtherenhancedtheemployee’sprofessionalskillsandoverallquality,soastostrengthentheconstructionofmanagementtalents,professionaltalentsandtechnicaltalentsteams.In2020,guidedbyclosingtothebusinessneeds,theCompanycentralizedthesuperiorresourcestopromotethecultivationofkeytalents.Anditorganizedandcarriedouttheopenclassprojectforalltheemployees,andorganizedandcarriedoutthenewemployee’straining&cultivationprojectsrespectivelyforthegraduatesfromcampusrecruitingandpersonnelfromsocialrecruitment.Meanwhile,itcentralizedtoorganizethepointedthetrainingprojectsofgeneralmanagementskillsandpostprofessionalknowledge,etcforthepersonnelfrommarketing,R&D,manufacturing,financialandhumanresourcessystems,soastobettercompleteitsannualtrainingplan.
4.LaborOutsourcing
□Applicable√Notapplicable
KonkaGroupCo.,Ltd.AnnualReport2020
PartXCorporateGovernance
IGeneralInformationofCorporateGovernanceIGeneralInformationofCorporateGovernanceIntheReportingPeriod,strictlyinaccordancewiththeCompanyLaw,SecuritiesLawofthePRC,CodeofCorporateGovernanceforListedCompanies,ShareListingRulesofShenzhenStockExchangeandtherelevantrulesandregulationsoftheCSRC,theCompanytimelyamendedtheinternalcontrolsystemssuchastheArticlesofAssociationandAdministrativeMethodonProvisionofExternalFinancialAidsaswellasManagementSystemonInvestorsRelationship,continuouslyperfectedthecorporategovernancestructureandstandardizedtheCompany’soperation.BytheendoftheReportingPeriod,theactualconditionsofcorporategovernancebasicallymettherequirementsoftheregulatorydocumentsinrespectofcorporategovernancestructureoflistedcompaniesissuedbyCSRC.(I)ShareholdersandtheShareholders’GeneralMeetingTheCompanydrewupArticlesofAssociationandRulesforProcedureofShareholders’GeneralMeeting,ensuredthatallshareholders,inparticularmediumandminorshareholders,enjoylegalrightsandequalstandard.IntheReportingPeriod,theCompanywasabletopublishannouncementonShareholders’GeneralMeetingsinadvance,convenedShareholders’GeneralMeetingwithstrictlyaccordancetorelevantrequirements,soastoenabletheshareholdershavetheirrightsofinformationtotheCompany’smaterialissuesandtheparticipationrights.In2020,theCompanyconvenedfiveShareholders’GeneralMeetingintotal.TheCompanyseriouslydidwelltheregistration,arrangementandorganizationworkfortheShareholders’GeneralMeetingbeforethecircularonconveningtheShareholders’GeneralMeetingbeingpublishedatthedesignatedmedia.TheCompanyconvenedtheShareholders’GeneralMeetingattheofficeaddressoftheCompanystrictlyinlinewithrelevantstipulations,whichwasconvenientintraffic,andtheshareholderscouldattendthesessioninaccordancewiththeiractualsituation.TheCompany’sdirectors,supervisorsandseniormanagementstaffsmadeexplanationsanddescriptionfortheshareholders’questionsandadvicesatthesession.(II)ControllingshareholderandtheCompanyIntheReportingPeriod,thecontrollingshareholdersandactualcontrollersstrictlyregulateditsbehaviorandcompliedwithlawsinexercisingtheirrightsandobligations,notbypassedtheShareholders’GeneralMeetingtointerveneintheCompany’sdecisionsandoperationsdirectlyorindirectly.TheCompanywasseparatedfromthecontrollingshareholdersandactualcontrollersinaspectsofitsbusiness,personnel,assets,organandfinance,theBoardofDirectors,SupervisoryCommitteeandtheinternaldepartmentsoftheCompanyfunctionedindependently.
KonkaGroupCo.,Ltd.AnnualReport2020
(III)DirectorsandtheBoardofDirectorsThenumberandstructureoftheBoardBureauoftheCompanywereincompliancewithlawsandregulations.TheCompanydrewupRulesforProceduresoftheBoardBureau,soastoensureahighefficientoperationandscientificdecision-makingoftheBoardBureau;theCompanyhassetupIndependentDirectorSystemandengagedthreeindependentdirectors.IntheReportingPeriod,thenumberofdirectorsandcompositionoftheBoardofDirectorsoftheCompanyaswellastheprocedureofselectionwasinaccordancewiththerequirementsoftherulesandlawsaswellasArticlesofAssociation.TheCompanysetupfourspecialcommittees,whichwereFinancialAuditCommittee,NominationCommittee,Remuneration&AppraisalCommittee,StrategyCommitteetoprovideprofessionopinionforthedecisionoftheBoardofDirectors.Allthedirectorscarriedouttheirwork,fulfilledtheirdutiesandscrupulouslyattendedtheBoardsessionsinaccordancewithRulesofProcedurefortheBoardofDirectors,RulesforIndependentDirectors,etc.16BoardsessionswereconvenedbytheCompanyduringtheReportingPeriod,whichbroughtthedecision-makingmechanismoftheBoardofDirectorsintofullplay.(IV)SupervisorsandsupervisorycommitteeTheCompanyhasestablishedRulesforProceduresoftheSupervisoryCommittee,personsandstructureoftheSupervisoryCommitteewasinlinewithrelevantlawsandstatutes,supervisorscanearnestlyperformtheirresponsibilities,independentlyandefficientlyexecutedsupervisionandcheckresponsibilitieswithaspiritofbeingresponsibletoshareholders.IntheReportingPeriod,thenumberofsupervisorsandcompositionoftheSupervisoryCommitteeoftheCompanyaswellastheirselectingprocedurecompliedwiththelaws,regulations.InaccordancewiththerequirementoftheRulesofProcedureforSupervisoryCommittee,thesupervisorsperformedtheirdutiesinanearnestandresponsiblemanner,andexercisedtheirfunctionsofsupervisiononthedecision-makingprocedureoftheBoardofDirectors,resolutionsandtheCompany’soperationbylaw,andtookeffectivesupervisionovertheCompany’ssignificantevents,relatedtransactions,financialposition,aswellasthelegalityandcomplianceondutyperformancebythedirectors,presidentandotherseniormanagementmembers.(V)PerformanceAppraisalandIncentive&RestrictiveMechanismTheseniormanagementstaffsoftheCompanywererecruitedonanopenbasisandincompliancewiththelawsandregulations.TheCompanyhasestablishedandgraduallyimprovedtheperformanceappraisalstandardsandincentive&restrictivemechanismforseniormanagementstaffs,soastoattractqualifiedpersonnel,andensurethestabilityofseniormanagementstaffs.(VI)InterestedpartiesDuringtheReportingPeriod,theCompanyfullyrespectedandmaintainedthelegalrightsoftheinterestedparties,andrealizedthebalanceofinterestamongthepartiessuchassociety,shareholdersandemployees,etc.Meanwhile,theCompanyprotectedtherightsoftheemployees,
KonkaGroupCo.,Ltd.AnnualReport2020
promotedtheenvironmentalprotection,andactivelyjoinedinthesocialbenefitandcharitablecausesoastojointlypromotesustainableandhealthydevelopment.(VII)InformationdisclosureandtransparencyTheCompanyformulatedtheManagementSystemforInvestorRelationsandtheManagementSystemforInformationDisclosureandtheRulesonImplementationforInformationDisclosureCommittee.AndtheCompanydesignatedspecially-assignedpersontotakechargeoftheinformationdisclosure,anddesignatedspecializeddepartmenttoberesponsibleforthereceptionofshareholdersandconsultation,activelycarryingouttheworkforinvestorrelationsmanagementtoensureequalaccesstoinformationforallshareholders.TheCompanystrictlycompliedwiththerequirementsofthelaws,regulationsandtheArticlesofAssociationtodiscloseitsinformationasrequiredbytherelevantregulationsonantimely,honest,completeandaccuratebasis,toensuretheaccurateandtimelyinformationdisclosure,whileensureequalaccesstoinformationforallshareholders.(VIII)Non-standardgovernance
1.Typeofnon-standardgovernancematterexistedTherewasasituationthattheCompanydisclosedundisclosedinformation.
2.TypesandcycleofundisclosedinformationprovidedtotheprincipalshareholderTheCompanyprovidedmonthlyfinancialdatatotheprincipalshareholder.
3.Reasonsfortherelatednon-standardgovernanceexistedTheCompanysubmittedtheundisclosedinformationsuchasmonthlyfinancialdatatothesubstantialshareholderdirectlyadministratedbytheState-ownedAssetsSupervisionandAdministrationCommissionofStateCouncilinaccordancewiththemanagerialdemandofSASAC.
4.ImpactonCompanyindependenceAftertheself-inspection,theCompanykeptstrictlytotherequirementsof“NoticeonStrengtheningtheSupervisionofListedCompany’sProvisionofNon-publicInformationtoSubstantialShareholdersandActualControllers”,and“SupplementaryNoticeConcerningStrengtheningtheSupervisionoftheNon-standardGovernanceBehaviorofListedCompany'sProvisionofNon-publicInformationtoSubstantialShareholdersandActualControllers”,whilestringentlyperformedthenecessaryprocedures.Thereexistednocircumstancesofsubstantialshareholder’sabuseofcontrolanddisclosureofundisclosedinformationforinsidertrading,andhence,ithasnoimpactontheindependenceoftheCompany.(IX)Developmentofcompany’sspecialgovernanceactivity,formulationandimplementationofregistrationandmanagementsystemfortheinsiderofinsideinformation
1.EstablishmentandperfectionofmanagementsystemfortheinsiderofinsideinformationTofurtherstandardizethecompany’sinsideinformationmanagementbehavior,strengthenthe
KonkaGroupCo.,Ltd.AnnualReport2020
company’sinsideinformationconfidentialwork,andmaintainthefairprincipleofinformationdisclosure,theCompanyestablishedInsideInformationandInsiderManagementSysteminKonkaGroupCo.,Ltd.TheCompanystrictlyimplementsthesystemintheinformationdisclosurework,meanwhile,carefullyimplementstheCompany’sinsideinformationandinsiderregistrationandmanagementmethod,registerstheinsiderofinsideinformation,andreporttoShenzhenStockExchangeandShenzhenSecurityRegulatoryBureauaccordingtotheprovision.TheCompanyconductedthespecialinspectionontheinsideinformationmanagementduringtheoccurrenceofmajoreventin2020andtheannualreportin2020.Aftertheinspection,theCompanyactuallyrealizedthattheinsiderofinsideinformationstrictlykepttheconfidentialprovision,didnotdisclose,divulgeandspreadtheCompany’sinsideinformationtotheoutside,theinsiderofinsideinformationdidnotbuyandselltheCompany’ssharewiththeinsideinformationbeforedisclosingthemajorsensitiveinformationinfluencingtheCompany’sshareprice,therewasnoinvestigationandrectificationfromtheregulatorydepartmentduringtheediting,reviewanddisclosureofregularreportandmajorevent.ManagementRulesforInsideInformationandInsiderManagementSystemwasimplementedinplaceandcontrolledeffectively.
2.Establishmentandimplementationofexternalinformationuser’smanagementsystemTostrengthenthemanagementonthereportingofCompany’sinsideinformation,theCompanyestablishesInsideInformationReportingManagementSystem,andprescribestheinsideinformationreportingrange,reportingprocedure,responsibilitydivisionandothermattersaccordingtoSecurityLawinPeople’sRepublicofChina,InformationDisclosureManagementMethodinListedCompany,InsideInformationandInsiderManagementSysteminKonkaGroupCo.,Ltd.andotherrelatedprovisionsinthelaws,regulationsandregulatorydocuments.TheCompanyconductedthespecialinspectionontheinsideinformationreportingstatusduringtheoccurrenceofmajoreventin2020andtheannualreportin2020.Aftertheinspection,theCompany’sinsideinformationreportingstatuscomplieswiththerequirementsinInsideInformationReportingManagementSystem.InsideInformationReportingManagementSystemwasimplementedinplaceandcontrolledeffectively.IndicatebytickmarketwhetherthereisanymaterialincompliancewiththeregulatorydocumentsissuedbytheCSRCgoverningthegovernanceoflistedcompanies.
□Yes√NoNosuchcasesintheReportingPeriod.IITheCompany’sIndependencefromItsControllingShareholderinBusiness,Personnel,Asset,OrganizationandFinancialAffairsDuringtheReportingPeriod,thecompanywasfullyseparatedfromthecontrollingshareholdersintermsofbusiness,staff,assets,organs,andfinance,whichownedindependentlegalrepresentativeandmainstatusinmarketcompetitionandhadindependentaccounting,aswellaspossessed
KonkaGroupCo.,Ltd.AnnualReport2020
completebusinessandtheabilityofindependentoperationtofacethemarket.(I)Business:theCompanyownedcompletesupply,R&D,productionandsalessystem,possessedabilityofindependentoperationtofacethemarketbyindependentoperation,independentaccounting&decision-making,independentbearingresponsibility&risks,didn’tsubjecttotheinterferenceandcontrolofthecontrollingshareholders,actualcontrolleranditscontrolledenterprises.(II)Staff:theCompanywasindependentofthecontrollingshareholderwithrespecttolabor,personnelandsalariesmanagement.TheCompanyownedindependentteamofstaffs,theseniormanagementstaff,financialpersonnelandbusinesspersonnelreceivedtheirremunerationsintheCompany,andtheywerefull-timestaffsoftheCompanywithoutholdinganypost,exceptdirectorsandsupervisors,inshareholders’unitsorotherrelatedenterprises.(III)Assetsintegrity:theCompanyhadproductionandoperationpremisescompletelyseparatedfromthecontrollingshareholder,andtheunaffiliatedandintegralassetsstructure,aswellastheindependentproductionsystem,ancillaryproductionsystem,theancillaryfacilities,housepropertyrightandotherassets,whichalsopossessedindependentprocurementandsalessystem.(IV)Organ:theCompanyhaditsownfunctionalorgansadaptingtotheneedsofself-developmentandmarketcompetitiveness,allthefunctionalorganswereseparatedfromeachotherinaspectsofpersonnel,officepremisesandmanagementrules,etc.,thereexistednoparticularsaboutanyshareholders,otherunitsorindividualsinterferingtheorgansettingoftheCompany.(V)Finance:theCompanyestablishedanindependentfinancedepartmentwithfull-timefinancialpersonnelandanindependentfinanceandaccountingsystem,andindependentlycarriedoutthefinancialworkinlinewithrequirementsofrelevantaccountingrules;theCompanypromulgatedsoundfinancialmanagementsystemtooperateindependentlywithoutsharingcommonaccountswiththecontrollingshareholder,relatedenterprise,otherunitsorindividual;theCompanyindependentlydeclaredandpaidthetaxbylawswithoutparticularsonpayingtaxestogetherwithshareholders’units.IIIHorizontalCompetition
□Applicable√NotapplicableIVAnnualandSpecialGeneralMeetingsConvenedduringtheReportingPeriod
1.GeneralMeetingConvenedduringtheReportingPeriod
| Meeting | Type | Investorparticipationratio | Dateofthemeeting | Disclosuredate | Indextodisclosedinformation |
| The2019AnnualGeneralMeeting | AnnualGeneralMeeting | 24.38% | 18May2020 | 19May2020 | http://www.cninfo.com.cn/new/index |
| The1stExtraordinaryGeneral | Extraordinary | 24.32% | 22June2020 | 23June2020 |
KonkaGroupCo.,Ltd.AnnualReport2020
| Meetingof2020 | GeneralMeeting | |||
| The2ndExtraordinaryGeneralMeetingof2020 | ExtraordinaryGeneralMeeting | 24.42% | 10August2020 | 11August2020 |
| The3rdExtraordinaryGeneralMeetingof2020 | ExtraordinaryGeneralMeeting | 24.43% | 14September2020 | 15September2020 |
| The4thExtraordinaryGeneralMeetingof2020 | ExtraordinaryGeneralMeeting | 24.52% | 9November2020 | 10November2020 |
2.SpecialGeneralMeetingsConvenedattheRequestofPreferredShareholderswithResumedVotingRights
□Applicable√NotapplicableVPerformanceofDutybyIndependentDirectorsintheReportingPeriod
1.AttendanceofIndependentDirectorsatBoardMeetingsandGeneralMeetings
| Attendanceofindependentdirectorsatboardmeetingsandgeneralmeetings | |||||||
| Independentdirector | Totalnumberofboardmeetingstheindependentdirectorwaseligibletoattend | Boardmeetingsattendedonsite | Boardmeetingsattendedbywayoftelecommunication | Boardmeetingsattendedthroughaproxy | Boardmeetingstheindependentdirectorfailedtoattend | Theindependentdirectorfailedtoattendtwoconsecutiveboardmeetings(yes/no) | Generalmeetingsattended |
| SunShengdian | 16 | 2 | 14 | 0 | 0 | No | 3 |
| WangShuguang | 16 | 2 | 14 | 0 | 0 | No | 0 |
| DengChunhua | 16 | 2 | 14 | 0 | 0 | No | 0 |
Whyanyindependentdirectorfailedtoattendtwoconsecutiveboardmeetings:
Notapplicable.
2.ObjectionsRaisedbyIndependentDirectorsonMattersoftheCompanyIndicatebytickmarkwhetheranyindependentdirectorsraisedanyobjectionsonanymatteroftheCompany.
□Yes√No
KonkaGroupCo.,Ltd.AnnualReport2020
NosuchcasesintheReportingPeriod.
3.OtherInformationaboutthePerformanceofDutybyIndependentDirectorsIndicatebytickmarkwhetheranysuggestionsfromindependentdirectorswereadoptedbytheCompany.
√Yes□NoSuggestionsfromindependentdirectorsadoptedornotadoptedbytheCompany:
DuringtheReportingPeriod,theIndependentDirectorsoftheCompanyvigorouslyattendedtherelevantmeetings,carefullyreviewedeachproposal,objectivelystatedtheirownviewsandopinions,gainedinsightintothepresentsituationofnewbusinessesoftheCompanysuchastheindustryandTrade,semi-conductor,environmentprotectionandadvancedmaterials,theR&Dandbrandbuildingprogress,theoperatingsituation,andtheexecutionsituationoftheinternalcontrolconstructionandtheresolutionsofthemeetingsoftheBoardofDirectorsaswellastheAnnualGeneralMeeting.Astheexpertoftheinvolvedeachfield,theIndependentDirectorsputforwardtheconstructiveadvicesbyuseoftheirownprofessionalknowledgetowardstheinternalmanagement,including:toactivelypromotetherefinementandimplementationoftheCompany’sdevelopmentstrategyplan,provideadvicesontheexpansionofbusinesses,focusonriskcontrolmatterssuchascashflowandaccountsreceivablemanagement.TheCompanycarefullyadoptedtheadvicesfromtheIndependentDirectorsandconstantlyimprovedandenhancedthemanagementleveloftheCompany.VIPerformanceofDutiesbySpecializedCommitteesundertheBoardduringthisReportingPeriod(I)SummaryReportonthePerformanceoftheAuditCommitteeSubjecttotheBoardofDirectorsTheCompanyhadconstitutedtheWorkRulesfortheFinancialAuditCommitteeundertheBoardwhichwasrevisedin2019andillustratedtheexactpersonnel,obligationsandrightsandworkingprocessofannualreportoftheFinancialAuditCommitteeundertheBoard.In2020,basedontheprincipleoffaithfulness,themajorexecutionsituationsoftheFinancialAuditCommitteeundertheBoardwereasfollows:
1.ReviewedfinancialstatementsofAnnualReport2019,FirstQuarterReport2020,InterimReport2020,andtheThirdQuarterReport2020,andhadnoobjectiontotheaforesaidfinancialstatements.
2.SubmittedtheProposalonHiringCPAin2020totheBoardon10April2020inwhichproposingtocontinuetohireShineWingCertifiedPublicAccountantsastheauditinstitutionoffinancialstatementsoftheCompanyin2020.
3.DuringthepreparationofAnnualReport2020oftheCompany,itfulfilledthefollowingduties:
(1)IssuedtheNotesoftheEventssuchastheAuditWorkArrangementoftheFinancialAudit
KonkaGroupCo.,Ltd.AnnualReport2020
Committeeandapprovedthearrangementfor2020annualauditingoftheCompany;
(2)IssuedAuditOpinionoftheFinancialAuditCommitteeonFinancialAccountingStatementsPreparedbytheCompanybeforeCPAs’entryofAudit;
(3)CommunicatedandexchangedideaswiththeCPAsresponsibleforannualauditingontheproblemsoccurringduringtheauditing;
(4)IssuedAuditOpiniononFinancialAccountingStatementsoftheCompanyafterCPAsIssuedthePreliminaryAuditOpinion;
(5)SupervisedandurgedCPAsinwritingtosubmitheauditreportwithintheagreedtimeperiodformanytimes.
(6)IssuedSummaryReporton2020AnnualAuditingbyShineWingCertifiedPublicAccountants;
(7)SubmittedtheResolutionofthe2020AnnualFinancialStatementoftheCompanytotheBoard;
(8)SubmittedtheProposalonEngagementoftheCPAsin2021totheBoard;
4.In2020,accordingtotheauthorizationoftheBoardofDirectors,theFinancialAuditCommitteeacceptedthereportontheworkoftheCompany’sInternalAuditingDepartmentandcarriedoutmanagementovertheInternalAuditingDepartmentoftheCompanyanditswork.(II)SummaryReportonthePerformanceoftheRemunerationandAppraisalCommitteeSubjecttotheBoardofDirectorsTheCompanyhadconstitutedtheWorkRulesfortheRemunerationandAppraisalCommitteeundertheBoardwhichillustratedtheexactpersonnel,obligationsandrightsoftheRemunerationandAppraisalCommitteeundertheBoard.In2020,basedontheprincipleoffaithfulness,themajorexecutionsituationsoftheRemunerationandAppraisalCommitteeundertheBoardwereasfollows:
1.On14August2020,theRemunerationandAppraisalCommitteesubjecttotheBoardofDirectorssubmittedtheAuditOpinionontheRewardPlanningfortheManagementoftheCompanyin2019totheBoard.
2.DuringthepreparationofAnnualReport2020,theRemunerationandAppraisalCommitteesubjecttotheBoardofDirectorsissuedtheAuditOpinionontheDisclosedRemunerationSituationoftheDirectors,SupervisorsandSeniorExecutivesoftheCompany,whichconsideredtheconditionoftheremunerationoftheDirectors,SupervisorsandSeniorExecutivesoftheCompanydisclosedinthe2020AnnualReportwasverified.ThedisclosedremunerationsituationoftheDirectors,SupervisorsandSeniorExecutivesoftheCompanymetwiththeremunerationmanagementsystemwithoutanysituationthatviolatedtheremunerationmanagementsystemoftheCompany.(III)SummaryreportonperformanceofnominationcommitteeoftheBoardofDirectorsTheCompanyformulatedtheCodeofPracticeofNominationCommitteeoftheBoardofDirectors,whichspecifiesmembers,responsibilitiesandauthoritiesofthenominationcommitteeoftheBoard
KonkaGroupCo.,Ltd.AnnualReport2020
ofDirectors.MainperformanceoftheCompany’sNominationCommitteeoftheBoardofDirectorsin2020includes:
1.SubmissionofProposalontheChangeofSeniorManagementtotheBoardofDirectorsoftheCompanyon17March2020.
2.SubmissionofApprovalOpinionsonCo-optedDirectorsofthe9
thBoardofDirectorstotheBoardofDirectorsoftheCompanyon14August2020.VIIPerformanceofDutybytheSupervisoryCommitteeIndicatebytickmarkwhethertheSupervisoryCommitteefoundanyrisktotheCompanyduringitssupervisionintheReportingPeriod.
□Yes√NoTheSupervisoryCommitteeraisednoobjectionsintheReportingPeriod.VIIIAppraisalofandIncentiveforSeniorManagementInordertoenabletheseniormanagementstaffsoftheCompanygivebetterperformanceoftheirduties,andclarifytheirrightsandobligations,theCompanyestablishedandimprovedafair,transparentandefficientPerformanceAppraisalStandardandIncentive&RestraintMechanismfortheseniormanagementstaffs.TheCompanyassessedthedutyperformanceandcompletionofbusinessofseniormanagementstaffsintermsofprofessionalskills,managementlevelandjobperformance;tookthesalaryplusbonusasamainincentiveway,toimprovetheincentiveofseniormanagement.TheseniormanagementstaffwasappraisedbytheBoardofDirectors,whichwassupervisedbytheSupervisoryCommittee.IXInternalControl
1.MaterialInternalControlWeaknessesIdentifiedfortheReportingPeriod
□Yes√No
2.InternalControlSelf-EvaluationReport
| Disclosuredateoftheinternalcontrolself-evaluationreport | 24March2021 | ||
| Indextothedisclosedinternalcontrolself-evaluationreport | http://www.cninfo.com.cn/new/index | ||
| Evaluatedentities’combinedassetsas%ofconsolidatedtotalassets | 90.00% | ||
| Evaluatedentities’combinedoperatingrevenueas%ofconsolidatedoperatingrevenue | 90.00% | ||
| Identificationstandardsforinternalcontrolweaknesses | |||
| Type | Weaknessesininternalcontroloverfinancialreporting | Weaknessesininternalcontrolnotrelatedtofinancialreporting | |
| Naturestandard | Thosewiththefollowingcharacteristicsshouldberecognizedasgreatdefect:(1)foundoutthereweremalpracticesoftheDirectors,SupervisorsandSeniorExecutivesoftheCompanythatformedsignificantinfluencesonthefinancialreport;(2)theCompanyrevisedthepublishedfinancialreportandrevisedthegreatmisstatements | Thefollowingsignsindicatedtheremayexistgreatdefectamongtheinternalcontrolofthenon-financialreport;(1)theoperatingactivitiesoftheenterprisesseriouslyviolatedthenationallawsandregulations;(2)negative | |
KonkaGroupCo.,Ltd.AnnualReport2020
| causedbythemalpracticesorthemistakes;(3)CPAfoundouttherewasgreatmisstatementofthecurrentfinancialreportwhiledidn’tfoundduringtheoperatingprocessoftheinternalcontrol;(4)thesupervisionoftheinternalcontrolbytheFinanceAuditCommitteeandtheinternalauditinstitutionoftheCompanywasinvalid;(5)notyetrevisedthegreatdefectafterthereasonableperiodaswhichwasdiscoveredamongtheinternalcontrolassessment;(6)thesignificantbusinesslackedofsystematiccontrolorthesystematiccontrolwasinvalid..Thosewiththefollowingcharacteristicsshouldberecognizedassignificantdefect:(1)notyetchosenorappliedtheaccountingpolicesaccordingtothegenerallyacceptedaccountingstandards;(2)notyetconstructedtheanti-spamprocessorcontrolmeasures;(3)asfortheaccountsdisposaloftheunconventionalorspecialtransactions,therewasnocorrespondingcontrolmechanismorexecutionortheexistenceofthecorrespondingsupplementcontrol;(4)therewasoneormultipledefectsduringthecontrolofthecompileofthefinancialreportattheperiod-endandcouldnotreasonableguaranteethestatementofthecompiledfinancialreportreachtherealandaccuratetarget;(5)notyetrevisedthesignificantdefectafterthereasonableperiodaswhichwasdiscoveredamongtheinternalcontrolassessment.3.Otherdefectsfromtheinternalcontrolhadn’treachedtherecognitionstandardsofthegreatdefectorsignificantdefectshouldberecognizedasgeneraldefect. | newsfrequentlydisclosedbythemediawhichcausedsignificantharmtotheCompany’sreputation;(3)thecoremanagementteamlefttheirpositionsoneafteranotherortheoutflowofthekeypositionpersonnelwasserious;(4)significantbusinesslackedofsystematiccontrolofthesystemwasinvalid;(5)greatdefectdiscoveredamongtheinternalcontrolassessmentnotyetberevisedintime.Thefollowingsignsindicatedtheremayexistsignificantdefectamongtheinternalcontrolofthenon-financialreport:(1)negativenewsoccurredratherfrequentlywhichcausedratherbigharmtotheCompany’sreputation;(2)theoutflowofthekeypositionpersonnelwasratherserious;(3)therewasobviousdefectamongthecontrolsystemofthesignificantbusiness;(4)thesignificantdefectfoundamongtheinternalcontrolassessmentnotyetberevisedintime.3.Otherdefectsfromtheinternalcontrolhadn’treachedtherecognitionstandardsofthegreatdefectorsignificantdefectshouldberecognizedasgeneraldefect. | |
| Quantitativestandard | Greatdefect:potentialmisstatementamount≥1%ofthegrossprofitmarginofthe2020consolidatedfinancialreportoftheCompany;significantdefect:0.5%ofthegrossprofitmarginofthe2020consolidatedfinancialreportoftheCompany≤potentialmisstatementamount＜1%ofthegrossprofitmarginofthe2020consolidatedfinancialreportoftheCompany;generaldefect:potentialmisstatementamount＜0.5%ofthegrossprofitmarginofthe2020consolidatedfinancialreportoftheCompany. | Implementinaccordancewiththequantitativecriteriaofinternalcontroldefectevaluationinfinancialstatements |
| Numberofmaterialweaknessesininternalcontroloverfinancialreporting | 0 | |
| Numberofmaterialweaknessesininternalcontrolnotrelatedtofinancialreporting | 0 | |
| Numberofseriousweaknessesininternalcontroloverfinancialreporting | 0 | |
| Numberofseriousweaknessesininternalcontrolnotrelatedtofinancialreporting | 0 | |
XIndependentAuditor’sReportonInternalControl
√Applicable□Notapplicable
| Opinionparagraphintheindependentauditor’sreportoninternalcontrol |
| Weconsideredthat,inallthesignificantaspects,KonkaGroupmaintainedefficientinternalcontrolofthefinancialreport |
KonkaGroupCo.,Ltd.AnnualReport2020
| accordingtotheC-SOXandtherelevantregulationson31December2020. | |
| Disclosuredate | 24March2021 |
| Indextosuchreportdisclosed | http://www.cninfo.com.cn/new/index |
| Typeoftheauditor’sopinion | Unmodifiedunqualifiedopinion |
| Materialweaknessesininternalcontrolnotrelatedtofinancialreporting | None |
Indicatebytickmarkwhetheranymodifiedopinionisexpressedintheindependentauditor’sreportontheCompany’sinternalcontrol.
□Yes√NoIndicatebytickmarkwhethertheindependentauditor’sreportontheCompany’sinternalcontrolisconsistentwiththeinternalcontrolself-evaluationreportissuedbytheCompany’sBoard.
√Yes□No
KonkaGroupCo.,Ltd.AnnualReport2020
PartXICorporateBonds
DoestheCompanyhaveanycorporatebondspubliclyofferedonthestockexchange,whichwereoutstandingbeforethedateofthisReport’sapprovalorwereduebutcouldnotberedeemedinfull?Pleaserefertotherelevantinformationdisclosed.I.BasicInformationoftheCorporateBonds
| Name | Abbr. | Code | Releasedate | Duedate | Bondsbalance(RMB’0,000) | Couponrate | Wayofredemption |
| Privatelyplacedcorporatebondsin2019ofKonkaGroupCo.,Ltd(TrancheI)(VarietyI) | 19Konka01 | 114418 | 14January2019 | 14January2022 | - | 5.00% | Interestsshallbepaideveryyearandtheprincipalsshallberepaidwhenexpired. |
| Privatelyplacedcorporatebondsin2019ofKonkaGroupCo.,Ltd(TrancheI)(VarietyII) | 19Konka02 | 114423 | 14January2019 | 14January2022 | 150,000 | 5.00% | Interestsshallbepaideveryyearandtheprincipalsshallberepaidwhenexpired. |
| Privatelyplacedcorporatebondsin2019ofKonkaGroupCo.,Ltd(TrancheII)(VarietyI) | 19Konka03 | 114488 | 3June2019 | 3June2022 | 50,000 | 4.50% | Interestsshallbepaideveryyearandtheprincipalsshallberepaidwhenexpired. |
| Privatelyplacedcorporatebondsin2019ofKonkaGroupCo.,Ltd(TrancheII)(VarietyII) | 19Konka04 | 114489 | 3June2019 | 3June2022 | 50,000 | 4.70% | Interestsshallbepaideveryyearandtheprincipalsshallberepaidwhenexpired. |
| Privatelyplacedcorporatebondsin2019ofKonkaGroupCo.,Ltd(TrancheIII)(VarietyI) | 19Konka05 | 114523 | 22July2019 | 22July2022 | 80,000 | 4.53% | Interestsshallbepaideveryyearandtheprincipalsshallberepaid |
KonkaGroupCo.,Ltd.AnnualReport2020
| whenexpired. | |||||||
| Privatelyplacedcorporatebondsin2019ofKonkaGroupCo.,Ltd(TrancheIII)(VarietyII) | 19Konka06 | 114524 | 22July2019 | 22July2022 | 70,000 | 4.70% | Interestsshallbepaideveryyearandtheprincipalsshallberepaidwhenexpired. |
| Privatelyplacedcorporatebondsin2021ofKonkaGroupCo.,Ltd(TrancheI) | 21Konka01 | 114894 | 8January2021 | 8January2024 | 100,000 | 4.46% | Interestsshallbepaideveryyearandtheprincipalsshallberepaidwhenexpired. |
| ListedortransferredtradingplaceoftheCompanybonds | ShenzhenStockExchange | ||||||
| Appropriatearrangementoftheinvestors | “19Konka01”,”19Konka02”,“19Konka03”,“19Konka04”,“19Konka05”,“19Konka06”wereplacedprivatelytoqualifiedinstitutionalinvestorsmeetingtherequirementsofmanagementmethodforinvestorseligibilityinbondsmarketofShenzhenStockExchange,and“21Konka01”wasplacedprivatelytoprofessionalinvestorsmeetingtherequirementsofmanagementmethodforinvestorseligibilityofShenzhenStockExchange,whichnotexceeding200persons. | ||||||
| InterestpaymentduringtheReportingPeriod | DuringtheReportingPeriod,asfor“19Konka01”,”19Konka02”,“19Konka03”,“19Konka04”,“19Konka05”and“19Konka06”,interesthasbeenpaidonschedule;asfor“21Konka01”,thefirstinterestpaymentdatedidnotarrive. | ||||||
| ExecutionoftherelevantregulationsduringtheReportingPeriodsuchastheaffiliatedoptionclauseoftheissuersorinvestors,specialclausessuchastheexchangeableregulationsoftheCompanybonds(ifapplicable) | 1.Optionforissuertoadjustcouponrate;2.Put-backsoptionforinvestors;therewasnoimplementationofrelevantclauses.Theoptiontoadjustcouponrateandinvestors’putoptionof“19Konka01”wereimplementedon14January2021.Detailsareasfollows:theissueradjustedthecouponrateoflastyearof“19Konka01”to2.80%.Putoptionof“19Konka01”reached10,000,000,withanamountofRMB1,000,000,000.00.PutoptionprincipalandcurrentinterestwerefullytransferredtotheaccountdesignatedbyChinaSecuritiesDepositoryandClearingCorporationLimited.“19Konka01”wereputinfullanddelistedfromtheexchange. | ||||||
II.ListoftheBondTrusteeandtheRatingOrganization
| Bondtrustee: | |||||||
| Name | IndustrialSecuritiesCo.,Ltd | Officeaddress | Room601,No.35JinshifangStreet,XichengDistrict, | Contactperson | PuHang,andZhangHuifang | Contactnumber | 010-50911203 |
KonkaGroupCo.,Ltd.AnnualReport2020
| Beijing | ||||
| RatingorganizationexecutedthetrackingratingofthecorporatebondsoftheReportingPeriod: | ||||
| Name | UnitedRatingsCo.,Ltd. | Officeaddress | No.2JianwaiStreet,ChaoyangDistrict,Beijing | |
| Alternationreasons,executionprocessandinfluencesontheinvestors’interestsetc.iftherewasalternationofthebondtrusteesandthecreditratingagenciesengagedbytheCompanyduringtheReportingPeriod(ifapplicable) | No | |||
III.ListoftheUsageoftheRaisedFundsoftheCorporateBonds
| ListoftheusageoftheraisedfundsandtheexecutionprocessoftheCompanybonds | TheCompanyhasusedtheraisedfundsanddisclosedrelatedinformationinatimely,authentic,accurateandcompletemannerstrictlyinaccordancewiththetermsintheprospectusforcurrentbonds,relatedprovisionsandrequirementsintheMeasuresforIssuanceandTradingofCorporateBonds,CSRCReleasesNo.2GuidelinefortheSupervisionofListedCompanies-AdministrationofFundsRaisedbyListedCompaniesandApplicableSupervisionRequirements,theStockListingRulesoftheShenzhenStockExchangeandGuidelinesforStandardizedOperationofListedCompaniesinShenzhenStockExchange.Ithasnotengagedinanyviolationsinrespectoftheuseandmanagementoftheraisedfunds. |
| Endingbalance(RMB'0,000) | 0 |
| Operatingsituationoftheraisedfundsspecialaccount | Theoperationwasingoodconditionwithoutanyviolationsforrelevantregulationsorcapitalsupervisionagreement |
| Whethertheusageoftheraisedfundsmetwiththeusage,usingplanandotheragreementscommittedontheprospectus | Yes |
IV.RatingSituationoftheCorporateBondsInformationInJune2020,UnitedCreditRatingsCo.,Ltd.madethetrackingratingfortheentityandrelevantbonds(including“19Konka01”,“19Konka02”,“19Konka03”,“19Konka04”,“19Konka05”and“19Konka06”)oftheCompany.TheentityoftheCompanywasratedasGradeAAinvariablyandas“Stable”foritsratingprospect;thebonds“19Konka01”,“19Konka02”,“19Konka03”,“19Konka04”,“19Konka05”and“19Konka06”issuedbyKonkaGroupCo.,Ltd.wereratedasGradeAAAinvariablyfortheircreditandas“Stable”fortheirratingprospect.InDecember2020,UnitedCreditRatingsCo.,Ltd.madethetrackingratingfortheentityand“21Konka01”oftheCompany.TheentityoftheCompanywasratedasGradeAAandas“Stable”foritsratingprospect;thebonds“21Konka01”issuedbyKonkaGroupCo.,Ltd.wereratedasGradeAAAfortheircreditandas“Stable”fortheirratingprospect.Thetrackingratingresultisconsistentwiththatissuedatthetimeofcorporatebondsissuance.TherelatedratingreporthasbeenpublishedonthewebsiteofShenzhenStockExchange.
KonkaGroupCo.,Ltd.AnnualReport2020
V.Credit-addingMechanism,RepaymentPlanandOtherRepaymentGuaranteeMeasuresoftheCorporateBondsOCTGroupprovidedtheunconditionalandirrevocablejointliabilityguaranteeinfullamountforthebonds“19Konka01”,”19Konka02”,“19Konka03”,“19Konka04”,“19Konka05”,“19Konka06”and“21Konka01”intheReportingPeriod.VI.ConveneSituationoftheBondsHoldersMeetingduringtheReportingPeriodNobondsholdersmeetingwasconvenedduringtheReportingPeriod.VII.ListoftheDutyExecutionoftheBondsTrusteeduringtheReportingPeriodDuringtheReportingPeriod,IndustrialSecuritiesCo.,Ltd.,theCompany’sbondtrusteemanager,proactivelyperformeditstrusteeship,continuedtobeconcernedwiththeCompany’sroutineproductionandoperationandfinancialconditions,andendeavoredtomaintainthelegitimaterightsandinterestsofthebondholderstrictlyinaccordancewithrelatedlaws,regulations,theManagementMeasuresfortheIssueandTradingofCorporateBonds,theProspectusandtheAgreementfortheBondTrusteeshipManagement.VIII.TheMajorAccountingDataandtheFinancialIndicatorsoftheRecent2YearsoftheCompanyupthePeriod-end
Unit:RMB’0,000
| Item | 2020 | 2019 | Change(%) |
| EBITDA | 180,180.33 | 164,356.08 | 9.63% |
| Currentratio | 93.18% | 114.80% | -21.62% |
| Debt/assetratio | 78.51% | 76.69% | 1.82% |
| Quickratio | 76.42% | 90.78% | -14.36% |
| Debt/EBITDAratio | 7.61% | 7.56% | -0.05% |
| Timesinterestearned | 1.40 | 1.42 | -1.41% |
| Timesinterestearnedofcash | 1.63 | -0.61 | -367.21% |
| TimesinterestearnedofEBITDA | 1.92 | 1.89 | 1.59% |
| Loanrepaymentrate | 100.00% | 100.00% | 0.00% |
| Interestcoverage | 100.00% | 100.00% | 0.00% |
MainreasonoftheaboveaccountingdataandthefinancialindicatorswiththeYoYchangeexceeded30%
√Applicable□NotapplicableTheremarkablechangeoftimesinterestearnedofcashisduetothesharpimprovementofcashflowfromoperatingactivities.
KonkaGroupCo.,Ltd.AnnualReport2020
IX.ListoftheInterestPaymentofOtherBondsandDebtFinancingInstrumentsduringtheReportingPeriodExceptforabovecorporatebonds,therearenootherbondsanddebtfinancinginstrumentsfortheCompanyduringtheReportingPeriod.X.ListoftheAcquiredBankCreditLines,UsageandtheRepaymentoftheBankLoansAsoftheendoftheReportingPeriod,theCompanyacquiredbankcreditlinesofRMB24.65billion,andusedRMB11.546billion.Allbankloanscanberepaidonschedulewithoutanyoverduesituations.XI.ListoftheExecutionoftheAgreementsortheCommitmentsRelatedtotheCompanyBondsRaisingSpecificationduringtheReportingPeriodDuringtheReportingPeriod,theCompanystrictlyobservedtheagreementsandperformedthecommitmentsrelatedtotheCompanyBondsraisingspecification.XII.SignificantEventsOccurringduringtheReportingPeriodDuringtheReportingPeriod,theCompanyhastimelydisclosedcurrentannouncementsregardingsignificanteventsoccurringthewebsiteofShenzhenStockExchange(http://www.szse.cn/)andcninfo(http://www.cninfo.com.cn/new/index).AsofthedisclosuredateofthisReport,relatedsignificanteventshavenosubsequentprogressyet.XIII.WhetherthereWasGuarantoroftheCorporateBonds
√Yes□NoWhethertheguarantorofthecorporatebondswaslegalpersonorotherorganizations
√Yes□NoWhetherseparatelydisclosethefinancialstatements(includingBalanceSheet,IncomeStatement,CashFlowStatement,andChangesinowners’(shareholders’)Equity,andnotesforFinancialStatements)ofguarantorintheReportingPeriodwithin4monthsfromtheendingdateofeveryaccountingyear
□Yes√No
KonkaGroupCo.,Ltd.AnnualReport2020
PartXIIFinancialStatementsIIndependentAuditor’sReport
| Typeoftheindependentauditor’sopinion | Unmodifiedunqualifiedopinion |
| Dateofsigningthisreport | 22March2021 |
| Nameoftheindependentauditor | ShineWingCertifiedPublicAccountants(SpecialGeneralPartnership) |
| Referencenumberofauditreport | XYZH/2021GZAA70014 |
| Nameofthecertifiedpublicaccountants | GuoDongchao,ZhanMiaoling |
IndependentAuditor’sReport
XYZH/2021GZAA70014AllshareholdersofKonkaGroupCo.,Ltd.I.OpinionWehaveauditedtheaccompanyingfinancialstatementsofKonkaGroupCo.,Ltd.(the“Company”),whichcomprisetheCompany’sandconsolidatedbalancesheetsoftheparentcompanyasat31December2020,theCompany’sandconsolidatedincomestatementsoftheparentcompany,theCompany’sandconsolidatedcashflowstatementsoftheparentcompany,theCompany’sandconsolidatedstatementsofchangesinshareholders’equityoftheparentcompanyfortheyearthenended,aswellasthenotestothefinancialstatements.Inouropinion,thefinancialstatementsattachedwerepreparedinlinewiththeregulationsofAccountingStandardsforBusinessEnterprisesinallsignificantaspectswhichgaveatrueandfairviewoftheconsolidatedandparentfinancialpositionoftheCompanyasat31December2020andtheconsolidatedandparentbusinessperformanceandcashflowoftheCompanyfor2020.II.BasisforOpinionWeconductedourauditinaccordancewithStandardsonAuditingforCertifiedPublicAccountants.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.Inaccordancewithprofessionalethicsforcertifiedpublicaccountants,weareindependentwithFoshanHuaxinPackingCo.,Ltd.andwehavefulfilledourotherethicalresponsibilities.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.III.KeyAuditMattersKeyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthefinancialstatementsoftheCurrentPeriod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,and
KonkaGroupCo.,Ltd.AnnualReport2020
wedonotprovideaseparateopiniononthesematters.
| 1.Recognitionofoperatingrevenues | |
| Keyauditmatters | Countermeasuresofaudit |
| Pleaserefertothenotestothefinancialstatements"six,notestotheconsolidatedfinancialstatements"46.In2020,KonkaGroup'sconsolidatedfinancialstatementsconfirmedoperatingincomeofRMB5,035,183.66,themainlyrevenuecomesfromtheelectronicbusiness,tradingbusiness,andenvironmentalprotectionbusiness,environmentalprotectionbusiness,etc.Duetotheimportanceofrevenuetothefinancialstatementsasawholeforimplementingthenewstandardsgoverningrevenue,andtheinherentmisstatementriskofmanagement'smanipulationofrevenuerecognitioninordertoachievespecificgoalsorexpectations,wemakerevenuerecognitionakeyauditmatter. | (1)Evaluateandtestincometoconfirmtheeffectivenessofkeyinternalcontroldesignandoperation;(2)Selectsamplestochecksupportingdocumentssuchassalescontracts,constructioncontracts,salessupportdocuments,orders,invoices,deliveryreceipts,cargorightstransfervouchers,banktransfervouchers,invoices,customsdeclarations,etc.Accountingpoliciesidentifycontracttermsandconditionsrelatedtorisksandrewardtransfersincommodityownership,checkwhetherthecompanyisthemainresponsiblepersonoragentinthesalesbusiness,andevaluatewhetherthecompany'srevenueconfirmsthattheaccountingpoliciesmeettherequirementsoftheenterpriseaccountingstandards;(3)Performanalyticalproceduresonrevenueandcosts,analyzethefluctuationsandcausesofsalespricesthisyear,andevaluatetherationalityofsalesgrossprofitmarginchanges;(4)Accordingtothecharacteristicsandnatureofthecustomer'stransaction,selectimportantcustomerstoimplementtheletterandletterprocedureforthetransactionamountandthebalanceofthetransaction,andstrictlycontroltheletterandletterprocedure;(5)Forenvironmentalprotectionprojects,obtainengineeringmeasurementpaymentcertificatesandotherdocuments;formajorprojects,checktheprogressoftheimageonthespot;(6)Selectsamplesofimportantcustomersandsupplierstocheckindustrialandcommercialinformationandbackground,andevaluatethecommercialrationalityoftransactionswithcustomers;entrustlawyerstocheckwhetherthereisanassociationbetweenimportantoverseascustomersandsuppliers.Visitcustomersandsupplierswithlargeamountsonthespot;(7)Forenvironmentalprotectionprojects,obtainengineeringmeasurementpaymentcertificateandotherdocuments,andobservetheimageprogressofmainprojectsonsite.(8)Conductacut-offtestonsalesrevenue. |
| 2.Recognitionofinvestmentincome | |
| Keyauditmatters | Countermeasuresofaudit |
| Pleaserefertothenotestothefinancialstatements"six,notestotheconsolidatedfinancialstatements"53In | (1)Evaluateandtesttheeffectivenessofmanagement'skeyinternalcontroldesignandoperationrelatedtoinvestment;(2)Interviewthecompany'smanagementandthetransfereetounderstandthebusiness |
KonkaGroupCo.,Ltd.AnnualReport2020
| 2020,KonkaGroup'sconsolidatedfinancialstatementsconfirmedinvestmentincomeofRMB243,333.60Mainlyforthedisposalofinvestmentincomegeneratedbylong-termequityinvestment,thegainsfromtheremeasurementoftheremainingequityafterthelossofcontrolrightsatfairvalue.Sincetheamountofinvestmentincomehasasignificantimpactonprofits,professionaljudgmentisrequiredonthedateoflossofcontrol,soweconfirmtheconfirmationofinvestmentincomeasakeyauditmatter. | backgroundoftheequitytransfer,whetherthetransferistrue,whetherthereareotheragreements,andwhetheritconstitutesapackagetransaction;(3)Understandthemethodofequitysaleandcheckthesettingoflistingconditions;(4)Checkthecontracttermsoftheequitytransfer,theequitystructureofthesubsidiarybeforeandafterthelossofcontrol,theappointmentofmajordirectorsandsupervisors,changesintheboardofdirectors,majorresolutions,changesinthemainmanagement,andthemainbodyofperformanceevaluationbeforeandafterthetransfer(5)Checktherecoveryofequitytransferfunds;(6)Reviewthefairnessoftheequitytransactionconsideration,reviewthejudgmentoflossofcontrolandtheremainingequitytoberecognizedatfairvaluemeasurementafterlossofcontrol;(7)Reviewthecalculationprocessofthecompany'sequitytransferinvestmentincometocheckwhethertheinvestmentincomeiscalculatedcorrectly. |
IV.OtherInformationThemanagementoftheCompanyisresponsiblefortheotherinformation.Theotherinformationcomprisesalloftheinformationincludedintheannualreportfor2020otherthanthefinancialstatementsandourauditor’sreportthereon.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.V.ResponsibilityofManagementandThoseChargedwithGovernancefortheFinancialStatementsThemanagementoftheCompanyisresponsibleforthepreparationandfairpresentationofthesefinancialstatementsinaccordancewithAccountingStandardsforBusinessEnterprisestomakethemafairpresentationanddesigning,implementingandmaintaininginternalcontrolrelevanttothepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,themanagementoftheCompanyisresponsibleforassessingtheCompany’sabilitytocontinueasagoingconcern,disclosing,ifapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessthemanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhasnorealisticalternativebuttodoso.
KonkaGroupCo.,Ltd.AnnualReport2020
ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany’sfinancialreportingprocess.VI.CPA’sResponsibilityfortheAuditoftheFinancialStatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Wereportouropinionsolelytoyou,asabody,andfornootherpurpose.Wedonotassumeresponsibilitytowardsoracceptliabilitytoanyotherpersonforthecontentsofthisreport.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithauditingstandardswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.Aspartofanauditinaccordancewithauditingstandards,weexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.Wealso:
(1)Identifyandassesstherisksofmajormisstatementoffinancialstatementsduetofraudorerrors,designandimplementauditprocedurestodealwiththeserisks,andobtainsufficientandappropriateauditevidenceasthebasisforissuingauditopinions.Sincefraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentation,oroverridinginternalcontrol,theriskoffailingtodetectamajormisstatementduetofraudishigherthantheriskoffailingtodetectamajormisstatementduetoerror.
(2)Understandtheinternalcontrolrelatedtoauditinginordertodesignappropriateauditingprocedures.
(3)Evaluatetheappropriatenessofmanagement'sselectionofaccountingpoliciesandtherationalityofaccountingestimatesandrelateddisclosures.
(4)Todrawconclusionsontheappropriatenessofthemanagement'suseofcontinuousoperationassumptions.Atthesametime,basedontheauditevidenceobtained,aconclusioncanbedrawnonwhetherthereisamaterialuncertaintythatmaycausesignificantdoubtsaboutKonkaGroup'sabilitytocontinueoperations.Ifweconcludethattherearesignificantuncertainties,theauditingstandardsrequireustodrawtheattentionoftheusersofthestatementstotherelevantdisclosuresinthefinancialstatementsintheauditreport;ifthedisclosuresareinsufficient,weshouldissueanon-reservedopinion.Ourconclusionisbasedontheinformationavailableasofthedateoftheauditreport.However,futureeventsorcircumstancesmaypreventKonkaGroupfromcontinuingitsoperations.
(5)Evaluatetheoverallpresentation,structure,andcontentofthefinancialstatements,andevaluatewhetherthefinancialstatementsfairlyreflectrelatedtransactionsandevents.
(6)Obtainsufficientandappropriateauditevidenceonthefinancialinformationoftheentitiesor
KonkaGroupCo.,Ltd.AnnualReport2020
businessactivitiesinKonkaGrouptoexpressauditopinionsonthefinancialstatements.Weareresponsibleforguiding,supervisingandexecutinggroupaudits,andassumefullresponsibilityforauditopinions.Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andrelatedsafeguards(ifapplicable).Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsoftheCurrentPeriodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.
| ShineWingCertifiedPublicAccountants(SpecialGeneralPartnership) | CPA:(EngagementPartner) | |
| CPA: | ||
| Beijing·China | 22March2021 |
IIFinancialStatementsCurrencyunitforthefinancialstatementsandthenotesthereto:RMB
1.ConsolidatedBalanceSheetPreparedbyKonkaGroupCo.,Ltd.
31December2020
Unit:RMB
| Item | 31December2020 | 31December2019 |
| Currentassets: | ||
| Monetaryassets | 5,431,530,180.90 | 6,599,360,051.61 |
| Settlementreserve | ||
| Interbankloansgranted |
KonkaGroupCo.,Ltd.AnnualReport2020
| Held-for-tradingfinancialassets | 618,249,541.66 | 61,494,666.97 |
| Derivativefinancialassets | ||
| Notesreceivable | 2,358,180,193.96 | 2,838,041,432.89 |
| Accountsreceivable | 3,900,897,623.59 | 4,416,179,657.87 |
| Accountsreceivablefinancing | 84,057,197.44 | 143,174,271.82 |
| Prepayments | 1,183,270,543.41 | 2,072,550,811.86 |
| Premiumsreceivable | ||
| Reinsurancereceivables | ||
| Receivablereinsurancecontractreserve | ||
| Otherreceivables | 2,145,736,640.60 | 1,772,183,366.49 |
| Including:Interestreceivable | 45,109,425.85 | 7,807,400.40 |
| Dividendsreceivable | 4,947,848.62 | 547,848.62 |
| Financialassetspurchasedunderresaleagreements | ||
| Inventories | 4,521,300,677.41 | 5,318,503,044.69 |
| Contractassets | 2,870,006,710.39 | |
| Assetsheldforsale | ||
| Currentportionofnon-currentassets | 112,310,158.82 | 108,087,016.22 |
| Othercurrentassets | 1,913,146,483.39 | 2,093,212,552.25 |
| Totalcurrentassets | 25,138,685,951.57 | 25,422,786,872.67 |
| Non-currentassets: | ||
| Loansandadvancestocustomers | ||
| Investmentsindebtobligations | ||
| Investmentsinotherdebtobligations | ||
| Long-termreceivables | 399,497,204.03 | 410,509,555.85 |
| Long-termequityinvestments | 4,375,833,584.65 | 3,465,541,196.89 |
| Investmentsinotherequityinstruments | 25,343,293.16 | 21,642,170.36 |
| Othernon-currentfinancialassets | 1,878,154,796.76 | 1,753,121,727.83 |
| Investmentproperty | 538,585,668.29 | 400,197,374.07 |
| Fixedassets | 3,178,642,017.84 | 2,561,254,191.55 |
| Constructioninprogress | 9,236,643,931.68 | 4,291,544,368.52 |
| Productivelivingassets | ||
| Oilandgasassets | ||
| Right-of-useassets | ||
| Intangibleassets | 1,189,191,001.51 | 1,213,271,713.22 |
KonkaGroupCo.,Ltd.AnnualReport2020
| Developmentcosts | ||
| Goodwill | 675,795,873.17 | 779,260,296.41 |
| Long-termprepaidexpense | 153,198,562.82 | 107,590,078.88 |
| Deferredincometaxassets | 1,265,916,437.39 | 987,763,182.17 |
| Othernon-currentassets | 1,820,779,170.74 | 1,172,472,723.85 |
| Totalnon-currentassets | 24,737,581,542.04 | 17,164,168,579.60 |
| Totalassets | 49,876,267,493.61 | 42,586,955,452.27 |
| Currentliabilities: | ||
| Short-termborrowings | 10,990,550,475.78 | 10,332,687,239.63 |
| Borrowingsfromthecentralbank | ||
| Interbankloansobtained | ||
| Held-for-tradingfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | 1,335,987,026.21 | 1,319,396,374.37 |
| Accountspayable | 9,632,366,325.76 | 5,797,822,479.60 |
| Advancesfromcustomers | - | 1,076,856,387.08 |
| Contractliabilities | 1,217,367,735.94 | |
| Financialassetssoldunderrepurchaseagreements | ||
| Customerdepositsandinterbankdeposits | ||
| Payablesforactingtradingofsecurities | ||
| Payablesforunderwritingofsecurities | ||
| Employeebenefitspayable | 476,616,244.45 | 426,870,498.58 |
| Taxespayable | 508,214,059.16 | 607,845,294.99 |
| Otherpayables | 1,999,430,899.69 | 2,374,287,243.20 |
| Including:Interestpayable | 220,837,380.17 | 227,831,108.53 |
| Dividendspayable | ||
| Handlingchargesandcommissionspayable | ||
| Reinsurancepayables | ||
| Liabilitiesdirectlyassociatedwithassetsheldforsale | ||
| Currentportionofnon-currentliabilities | 376,896,566.29 | 210,066,077.13 |
| Othercurrentliabilities | 441,774,317.23 | |
| Totalcurrentliabilities | 26,979,203,650.51 | 22,145,831,594.58 |
| Non-currentliabilities: | ||
| Insurancecontractreserve |
KonkaGroupCo.,Ltd.AnnualReport2020
| Long-termborrowings | 5,964,748,997.54 | 4,890,315,729.90 |
| Bondspayable | 4,993,212,788.32 | 4,987,709,643.64 |
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Leaseliabilities | ||
| Long-termpayables | 481,409,849.96 | 383,287,104.62 |
| Long-termemployeebenefitspayable | 5,248,309.14 | 5,565,646.72 |
| Provisions | 102,353,567.91 | 206,591.51 |
| Deferredincome | 446,900,524.64 | 151,874,258.45 |
| Deferredincometaxliabilities | 75,819,231.93 | 95,467,096.05 |
| Othernon-currentliabilities | 106,475,449.02 | |
| Totalnon-currentliabilities | 12,176,168,718.46 | 10,514,426,070.89 |
| Totalliabilities | 39,155,372,368.97 | 32,660,257,665.47 |
| Owners’equity: | ||
| Sharecapital | 2,407,945,408.00 | 2,407,945,408.00 |
| Otherequityinstruments | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 230,185,310.09 | 230,368,577.09 |
| Less:Treasurystock | ||
| Othercomprehensiveincome | -16,583,042.42 | -21,293,103.52 |
| Specificreserve | ||
| Surplusreserves | 1,211,721,109.67 | 1,211,721,109.67 |
| Generalreserve | ||
| Retainedearnings | 4,595,371,391.63 | 4,239,763,606.89 |
| TotalequityattributabletoownersoftheCompanyastheparent | 8,428,640,176.97 | 8,068,505,598.13 |
| Non-controllinginterests | 2,292,254,947.67 | 1,858,192,188.67 |
| Totalowners’equity | 10,720,895,124.64 | 9,926,697,786.80 |
| Totalliabilitiesandowners’equity | 49,876,267,493.61 | 42,586,955,452.27 |
Legalrepresentative:LiuFengxiCFO:LiChunleiHeadofthefinancialdepartment:GuoZhihua
2.BalanceSheetoftheCompanyastheParent
Unit:RMB
| Item | 31December2020 | 31December2019 |
KonkaGroupCo.,Ltd.AnnualReport2020
| Currentassets: | ||
| Monetaryassets | 3,481,445,560.17 | 2,498,077,198.12 |
| Held-for-tradingfinancialassets | 298,497,458.33 | 61,494,666.97 |
| Derivativefinancialassets | ||
| Notesreceivable | 879,589,355.91 | 2,148,312,821.38 |
| Accountsreceivable | 4,473,251,691.85 | 9,564,720,940.39 |
| Accountsreceivablefinancing | 5,659,400.00 | 66,002,903.68 |
| Prepayments | 1,021,218,285.46 | 911,315,168.95 |
| Otherreceivables | 10,034,869,353.07 | 10,552,820,915.47 |
| Including:Interestreceivable | 41,138,869.97 | 7,431,353.86 |
| Dividendsreceivable | 749,431,635.50 | 518,580,871.02 |
| Inventories | 202,406,456.36 | 218,644,308.47 |
| Contractassets | ||
| Assetsheldforsale | ||
| Currentportionofnon-currentassets | ||
| Othercurrentassets | 1,020,031,186.39 | 1,096,689,897.40 |
| Totalcurrentassets | 21,416,968,747.54 | 27,118,078,820.83 |
| Non-currentassets: | ||
| Investmentsindebtobligations | ||
| Investmentsinotherdebtobligations | ||
| Long-termreceivables | ||
| Long-termequityinvestments | 8,806,166,599.56 | 7,712,084,967.88 |
| Investmentsinotherequityinstruments | 17,940,215.36 | 12,940,214.36 |
| Othernon-currentfinancialassets | 250,230,000.00 | 250,230,000.00 |
| Investmentproperty | 406,237,236.91 | 400,197,374.07 |
| Fixedassets | 431,762,044.14 | 444,107,402.57 |
| Constructioninprogress | 132,464,938.18 | 40,933,270.51 |
| Productivelivingassets | ||
| Oilandgasassets | ||
| Right-of-useassets | ||
| Intangibleassets | 59,506,272.63 | 80,470,750.60 |
| Developmentcosts | ||
| Goodwill | ||
| Long-termprepaidexpense | 16,532,521.69 | 39,047,325.68 |
KonkaGroupCo.,Ltd.AnnualReport2020
| Deferredincometaxassets | 980,095,292.53 | 883,234,085.45 |
| Othernon-currentassets | 10,867,888.84 | |
| Totalnon-currentassets | 11,111,803,009.84 | 9,863,245,391.12 |
| Totalassets | 32,528,771,757.38 | 36,981,324,211.95 |
| Currentliabilities: | ||
| Short-termborrowings | 5,052,990,048.93 | 5,014,312,913.74 |
| Held-for-tradingfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | 1,344,958,738.50 | 2,610,991,473.69 |
| Accountspayable | 6,811,467,585.39 | 11,078,648,690.19 |
| Advancesfromcustomers | 318,839,961.84 | |
| Contractliabilities | 723,022,740.95 | |
| Employeebenefitspayable | 147,391,317.06 | 125,402,307.95 |
| Taxespayable | 4,094,133.23 | 9,305,344.42 |
| Otherpayables | 4,275,347,622.57 | 3,193,392,734.69 |
| Including:Interestpayable | 215,828,625.04 | 223,847,860.57 |
| Dividendspayable | ||
| Liabilitiesdirectlyassociatedwithassetsheldforsale | ||
| Currentportionofnon-currentliabilities | 5,867,425.49 | 130,512,375.00 |
| Othercurrentliabilities | 6,108,675.36 | |
| Totalcurrentliabilities | 18,371,248,287.48 | 22,481,405,801.52 |
| Non-currentliabilities: | ||
| Long-termborrowings | 2,930,034,612.32 | 3,438,055,729.90 |
| Bondspayable | 4,993,212,788.32 | 4,987,709,643.64 |
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Leaseliabilities | ||
| Long-termpayables | 17,633,249.67 | 21,855,688.19 |
| Long-termemployeebenefitspayable | ||
| Provisions | 832,465.72 | 206,591.51 |
| Deferredincome | 61,530,557.55 | 59,545,839.30 |
| Deferredincometaxliabilities | 2,334,364.58 | |
| Othernon-currentliabilities | 54,162,098.05 | |
| Totalnon-currentliabilities | 8,059,740,136.21 | 8,507,373,492.54 |
KonkaGroupCo.,Ltd.AnnualReport2020
| Totalliabilities | 26,430,988,423.69 | 30,988,779,294.06 |
| Owners’equity: | ||
| Sharecapital | 2,407,945,408.00 | 2,407,945,408.00 |
| Otherequityinstruments | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 112,570,352.72 | 114,018,066.79 |
| Less:Treasurystock | ||
| Othercomprehensiveincome | -2,682,217.31 | -2,682,217.31 |
| Specificreserve | ||
| Surplusreserves | 1,227,564,785.19 | 1,227,564,785.19 |
| Retainedearnings | 2,352,385,005.09 | 2,245,698,875.22 |
| Totalowners’equity | 6,097,783,333.69 | 5,992,544,917.89 |
| Totalliabilitiesandowners’equity | 32,528,771,757.38 | 36,981,324,211.95 |
3.ConsolidatedIncomeStatement
Unit:RMB
| Item | 2020 | 2019 |
| 1.Revenue | 50,351,836,554.87 | 55,119,125,478.72 |
| Including:Operatingrevenue | 50,351,836,554.87 | 55,119,125,478.72 |
| Interestincome | ||
| Insurancepremiumincome | ||
| Handlingchargeandcommissionincome | ||
| 2.Costsandexpenses | 52,314,397,544.31 | 56,684,201,307.20 |
| Including:Costofsales | 47,595,064,349.98 | 52,138,198,501.04 |
| Interestexpense | ||
| Handlingchargeandcommissionexpense | ||
| Surrenders | ||
| Netinsuranceclaimspaid | ||
| Netamountprovidedasinsurancecontractreserve | ||
| Expenditureonpolicydividends | ||
| Reinsurancepremiumexpense | ||
| Taxesandsurcharges | 97,235,867.31 | 109,851,831.11 |
| Sellingexpense | 1,825,626,804.27 | 2,303,132,732.06 |
| Administrativeexpense | 1,022,981,943.34 | 856,529,327.62 |
KonkaGroupCo.,Ltd.AnnualReport2020
| R&Dexpense | 681,878,611.65 | 500,600,102.23 |
| Financecosts | 1,091,609,967.76 | 775,888,813.14 |
| Including:Interestexpense | 979,223,522.98 | 1,031,068,425.69 |
| Interestincome | 164,580,939.30 | 247,559,600.76 |
| Add:Otherincome | 928,933,528.03 | 1,229,174,834.33 |
| Returnoninvestment(“-”forloss) | 2,433,336,004.85 | 1,183,381,090.39 |
| Including:Shareofprofitorlossofjointventuresandassociates | 106,458,465.42 | 141,264,035.96 |
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Exchangegain(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | 19,089,541.66 | -3,005,381.67 |
| Creditimpairmentloss(“-”forloss) | -722,375,850.15 | -531,879,268.76 |
| Assetimpairmentloss(“-”forloss) | -462,407,098.47 | -303,035,915.82 |
| Assetdisposalincome(“-”forloss) | 206,315,700.34 | 293,706,640.64 |
| 3.Operatingprofit(“-”forloss) | 440,330,836.82 | 303,266,170.63 |
| Add:Non-operatingincome | 87,126,795.41 | 165,843,388.94 |
| Less:Non-operatingexpense | 25,590,474.86 | 18,533,352.41 |
| 4.Profitbeforetax(“-”forloss) | 501,867,157.37 | 450,576,207.16 |
| Less:Incometaxexpense | -38,206,305.07 | 115,640,091.82 |
| 5.Netprofit(“-”fornetloss) | 540,073,462.44 | 334,936,115.34 |
| 5.1Byoperatingcontinuity | 540,073,462.44 | 334,936,115.34 |
| 5.1.1Netprofitfromcontinuingoperations(“-”fornetloss) | 540,073,462.44 | 334,936,115.34 |
| 5.1.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.2Byownership | 540,073,462.44 | 334,936,115.34 |
| 5.2.1NetprofitattributabletoshareholdersoftheCompanyastheparent | 477,633,250.14 | 212,034,210.08 |
| 5.2.1Netprofitattributabletonon-controllinginterests | 62,440,212.30 | 122,901,905.26 |
| 6.Othercomprehensiveincome,netoftax | -2,800,360.64 | -9,001,934.47 |
| AttributabletoownersoftheCompanyastheparent | 3,081,866.10 | -10,754,884.44 |
| 6.1Itemsthatwillnotbereclassifiedtoprofitorloss | 1,625,107.80 | -9,652,181.00 |
| 6.1.1Changescausedbyremeasurementsondefinedbenefitschemes |
KonkaGroupCo.,Ltd.AnnualReport2020
| 6.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | 1,625,107.80 | |
| 6.1.4Changesinthefairvaluearisingfromchangesinowncreditrisk | -9,652,181.00 | |
| 6.1.5Other | ||
| 6.2Itemsthatwillbereclassifiedtoprofitorloss | 1,456,758.30 | -1,102,703.44 |
| 6.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 6.2.3Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 6.2.4Creditimpairmentallowanceforinvestmentsinotherdebtobligations | ||
| 6.2.5Reserveforcashflowhedges | ||
| 6.2.6Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | 1,456,758.30 | -1,102,703.44 |
| 6.2.7Other | ||
| Attributabletonon-controllinginterests | -5,882,226.74 | 1,752,949.97 |
| 7.Totalcomprehensiveincome | 537,273,101.80 | 325,934,180.87 |
| AttributabletoownersoftheCompanyastheparent | 480,715,116.24 | 201,279,325.64 |
| Attributabletonon-controllinginterests | 56,557,985.56 | 124,654,855.23 |
| 8.Earningspershare | ||
| 8.1Basicearningspershare | 0.1984 | 0.0881 |
| 8.2Dilutedearningspershare | 0.1984 | 0.0881 |
Legalrepresentative:LiuFengxiCFO:LiChunleiHeadofthefinancialdepartment:GuoZhihua
4.IncomeStatementoftheCompanyastheParent
Unit:RMB
| Item | 2020 | 2019 |
| 1.Operatingrevenue | 3,714,887,652.49 | 5,686,102,146.98 |
| Less:Costofsales | 3,276,220,339.62 | 5,413,631,784.77 |
| Taxesandsurcharges | 10,739,550.81 | 14,547,750.43 |
| Sellingexpense | 503,144,683.54 | 1,210,476,107.74 |
| Administrativeexpense | 472,549,413.24 | 387,778,068.98 |
| R&Dexpense | 93,029,766.19 | 47,127,013.11 |
KonkaGroupCo.,Ltd.AnnualReport2020
| Financecosts | 626,375,762.29 | 414,932,824.70 |
| Including:Interestexpense | 813,956,736.75 | 1,553,039,361.28 |
| Interestincome | 438,850,221.34 | 782,721,658.41 |
| Add:Otherincome | 66,280,682.30 | 51,226,732.61 |
| Returnoninvestment(“-”forloss) | 1,821,844,767.52 | 999,198,310.44 |
| Including:Shareofprofitorlossofjointventuresandassociates | -5,700,659.97 | 5,132,712.27 |
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | 9,337,458.33 | -3,005,381.67 |
| Creditimpairmentloss(“-”forloss) | -631,160,001.21 | -170,077,622.68 |
| Assetimpairmentloss(“-”forloss) | -100,464,731.32 | -16,347,540.36 |
| Assetdisposalincome(“-”forloss) | 188,200,000.00 | 1,000.00 |
| 2.Operatingprofit(“-”forloss) | 86,866,312.42 | -941,395,904.41 |
| Add:Non-operatingincome | 35,988,778.37 | 19,741,857.31 |
| Less:Non-operatingexpense | 9,642,635.24 | 3,088,072.47 |
| 3.Profitbeforetax(“-”forloss) | 113,212,455.55 | -924,742,119.57 |
| Less:Incometaxexpense | -94,328,961.05 | -365,219,888.18 |
| 4.Netprofit(“-”fornetloss) | 207,541,416.60 | -559,522,231.39 |
| 4.1Netprofitfromcontinuingoperations(“-”fornetloss) | 207,541,416.60 | -559,522,231.39 |
| 4.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.Othercomprehensiveincome,netoftax | -1,500,000.00 | |
| 5.1Itemsthatwillnotbereclassifiedtoprofitorloss | -1,500,000.00 | |
| 5.1.1Changescausedbyremeasurementsondefinedbenefitschemes | ||
| 5.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | ||
| 5.1.4Changesinthefairvaluearisingfromchangesinowncreditrisk | -1,500,000.00 | |
| 5.1.5Other | ||
| 5.2Itemsthatwillbereclassifiedtoprofitorloss | ||
| 5.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod |
KonkaGroupCo.,Ltd.AnnualReport2020
| 5.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 5.2.3Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 5.2.4Creditimpairmentallowanceforinvestmentsinotherdebtobligations | ||
| 5.2.5Reserveforcashflowhedges | ||
| 5.2.6Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | ||
| 5.2.7Other | ||
| 6.Totalcomprehensiveincome | 207,541,416.60 | -561,022,231.39 |
| 7.Earningspershare | ||
| 7.1Basicearningspershare | ||
| 7.2Dilutedearningspershare |
5.ConsolidatedCashFlowStatement
Unit:RMB
| Item | 2020 | 2019 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 47,366,925,545.71 | 55,023,730,960.29 |
| Netincreaseincustomerdepositsandinterbankdeposits | ||
| Netincreaseinborrowingsfromthecentralbank | ||
| Netincreaseinloansfromotherfinancialinstitutions | ||
| Premiumsreceivedonoriginalinsurancecontracts | ||
| Netproceedsfromreinsurance | ||
| Netincreaseindepositsandinvestmentsofpolicyholders | ||
| Interest,handlingchargesandcommissionsreceived | ||
| Netincreaseininterbankloansobtained | ||
| Netincreaseinproceedsfromrepurchasetransactions | ||
| Netproceedsfromactingtradingofsecurities | ||
| Taxrebates | 453,084,150.61 | 697,787,485.21 |
| Cashgeneratedfromotheroperatingactivities | 4,223,616,786.41 | 4,011,016,045.28 |
| Subtotalofcashgeneratedfromoperatingactivities | 52,043,626,482.73 | 59,732,534,490.78 |
| Paymentsforcommoditiesandservices | 45,800,932,391.57 | 54,686,521,084.34 |
| Netincreaseinloansandadvancestocustomers | ||
| Netincreaseindepositsinthecentralbankandininterbankloansgranted |
KonkaGroupCo.,Ltd.AnnualReport2020
| Paymentsforclaimsonoriginalinsurancecontracts | ||
| Netincreaseininterbankloansgranted | ||
| Interest,handlingchargesandcommissionspaid | ||
| Policydividendspaid | ||
| Cashpaidtoandforemployees | 1,744,799,823.16 | 1,808,972,838.78 |
| Taxespaid | 854,326,582.63 | 842,402,228.64 |
| Cashusedinotheroperatingactivities | 3,464,951,157.16 | 3,938,585,623.61 |
| Subtotalofcashusedinoperatingactivities | 51,865,009,954.52 | 61,276,481,775.37 |
| Netcashgeneratedfrom/usedinoperatingactivities | 178,616,528.21 | -1,543,947,284.59 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 706,624,869.40 | 224,405,975.50 |
| Returnoninvestment | 125,587,929.51 | 168,681,375.93 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 370,112,371.91 | 202,577,149.61 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | 873,767,298.03 | 270,821,233.18 |
| Cashgeneratedfromotherinvestingactivities | 2,722,258,145.07 | 2,085,669,168.69 |
| Subtotalofcashgeneratedfrominvestingactivities | 4,798,350,613.92 | 2,952,154,902.91 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 5,639,711,463.90 | 3,928,377,181.52 |
| Paymentsforinvestments | 254,250,619.25 | 1,357,746,303.50 |
| Netincreaseinpledgedloansgranted | ||
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
| Cashusedinotherinvestingactivities | 1,356,937,320.83 | 1,528,640,757.47 |
| Subtotalofcashusedininvestingactivities | 7,250,899,403.98 | 7,250,899,403.98 |
| Netcashgeneratedfrom/usedininvestingactivities | -2,452,548,790.06 | -3,862,609,339.58 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | 505,578,067.25 | 508,363,013.03 |
| Including:Capitalcontributionsbynon-controllingintereststosubsidiaries | 505,578,067.25 | 508,363,013.03 |
| Borrowingsraised | 19,606,041,084.27 | 30,069,405,522.31 |
| Cashgeneratedfromotherfinancingactivities | 2,755,219,144.42 | 1,825,598,732.14 |
| Subtotalofcashgeneratedfromfinancingactivities | 22,866,838,295.94 | 32,403,367,267.48 |
| Repaymentofborrowings | 17,891,643,322.79 | 23,540,444,424.43 |
| Interestanddividendspaid | 865,497,236.05 | 774,763,008.11 |
KonkaGroupCo.,Ltd.AnnualReport2020
| Including:Dividendspaidbysubsidiariestonon-controllinginterests | 4,513,500.00 | 32,480,813.33 |
| Cashusedinotherfinancingactivities | 1,974,684,683.67 | 1,623,142,762.86 |
| Subtotalofcashusedinfinancingactivities | 20,731,825,242.51 | 25,938,350,195.40 |
| Netcashgeneratedfrom/usedinfinancingactivities | 2,135,013,053.43 | 6,465,017,072.08 |
| 4.Effectofforeignexchangerateschangesoncashandcashequivalents | -56,726,595.56 | 1,091,987.59 |
| 5.Netincreaseincashandcashequivalents | -195,645,803.98 | 1,059,552,435.50 |
| Add:Cashandcashequivalents,beginningoftheperiod | 4,493,701,917.22 | 3,434,149,481.72 |
| 6.Cashandcashequivalents,endoftheperiod | 4,298,056,113.24 | 4,493,701,917.22 |
6.CashFlowStatementoftheCompanyastheParent
Unit:RMB
| Item | 2020 | 2019 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 3,449,433,124.12 | 8,005,144,873.81 |
| Taxrebates | 264,186,752.60 | 66,111,058.65 |
| Cashgeneratedfromotheroperatingactivities | 2,775,286,767.61 | 14,543,919,908.50 |
| Subtotalofcashgeneratedfromoperatingactivities | 6,488,906,644.33 | 22,615,175,840.96 |
| Paymentsforcommoditiesandservices | 4,041,185,808.91 | 7,375,766,734.52 |
| Cashpaidtoandforemployees | 339,065,929.50 | 695,358,748.25 |
| Taxespaid | 21,261,070.79 | 49,371,867.49 |
| Cashusedinotheroperatingactivities | 2,786,729,899.09 | 17,421,013,450.10 |
| Subtotalofcashusedinoperatingactivities | 7,188,242,708.29 | 25,541,510,800.36 |
| Netcashgeneratedfrom/usedinoperatingactivities | -699,336,063.96 | -2,926,334,959.40 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 1,504,019,339.15 | 352,345,126.34 |
| Returnoninvestment | 228,657,238.16 | 154,536,752.58 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 188,356,456.56 | 1,248,287.86 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
| Cashgeneratedfromotherinvestingactivities | 9,733,428,063.02 | 1,280,395,551.82 |
| Subtotalofcashgeneratedfrominvestingactivities | 11,654,461,096.89 | 1,788,525,718.60 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 112,518,905.62 | 90,251,903.78 |
| Paymentsforinvestments | 1,400,141,815.71 | 1,628,545,610.00 |
KonkaGroupCo.,Ltd.AnnualReport2020
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
| Cashusedinotherinvestingactivities | 8,258,345,751.11 | 1,021,817,610.69 |
| Subtotalofcashusedininvestingactivities | 9,771,006,472.44 | 2,740,615,124.47 |
| Netcashgeneratedfrom/usedininvestingactivities | 1,883,454,624.45 | -952,089,405.87 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | ||
| Borrowingsraised | 14,529,825,025.55 | 25,760,260,136.81 |
| Cashgeneratedfromotherfinancingactivities | 9,797,462,437.60 | 30,700,000.00 |
| Subtotalofcashgeneratedfromfinancingactivities | 24,327,287,463.15 | 25,790,960,136.81 |
| Repaymentofborrowings | 15,109,478,610.76 | 21,231,768,458.85 |
| Interestanddividendspaid | 741,959,265.05 | 649,307,167.98 |
| Cashusedinotherfinancingactivities | 8,075,141,705.43 | 177,215,911.37 |
| Subtotalofcashusedinfinancingactivities | 23,926,579,581.24 | 22,058,291,538.20 |
| Netcashgeneratedfrom/usedinfinancingactivities | 400,707,881.91 | 3,732,668,598.61 |
| 4.Effectofforeignexchangerateschangesoncashandcashequivalents | -11,406,036.33 | -14,696,602.27 |
| 5.Netincreaseincashandcashequivalents | 1,573,420,406.07 | -160,452,368.93 |
| Add:Cashandcashequivalents,beginningoftheperiod | 1,337,342,186.92 | 1,497,794,555.85 |
| 6.Cashandcashequivalents,endoftheperiod | 2,910,762,592.99 | 1,337,342,186.92 |
KonkaGroupCo.,Ltd.AnnualReport2020
7.ConsolidatedStatementsofChangesinOwners’Equity
2020
Unit:RMB
| Item | 2020 | ||||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||||
| 1.Balanceasattheendoftheprioryear | 2,407,945,408.00 | 230,368,577.09 | -21,293,103.52 | 1,211,721,109.67 | 4,239,763,606.89 | 8,068,505,598.13 | 1,858,192,188.67 | 9,926,697,786.80 | |||||||
| Add:Adjustmentforchangeinaccountingpolicy | |||||||||||||||
| Adjustmentforcorrectionofpreviouserror | |||||||||||||||
| Adjustmentforbusinesscombinationundercommoncontrol | |||||||||||||||
| Otheradjustments | |||||||||||||||
| 2.Balanceasatthebeginningoftheyear | 2,407,945,408.00 | 230,368,577.09 | -21,293,103.52 | 1,211,721,109.67 | 4,239,763,606.89 | 8,068,505,598.13 | 1,858,192,188.67 | 9,926,697,786.80 | |||||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -183,267.00 | 4,710,061.10 | 355,607,784.74 | 360,134,578.84 | 434,062,759.00 | 794,197,337.84 | |||||||||
| 3.1Totalcomprehensiveincome | |||||||||||||||
KonkaGroupCo.,Ltd.AnnualReport2020
| 3,081,866.10 | 477,633,250.14 | 480,715,116.24 | 56,557,985.56 | 537,273,101.80 | ||||||
| 3.2Capitalincreasedandreducedbyowners | -183,267.00 | -183,267.00 | 418,501,067.25 | 418,317,800.25 | ||||||
| 3.2.1Ordinarysharesincreasedbyowners | 418,501,067.25 | 418,501,067.25 | ||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | ||||||||||
| 3.2.4Other | -183,267.00 | -183,267.00 | -183,267.00 | |||||||
| 3.3Profitdistribution | -120,397,270.40 | -120,397,270.40 | -40,996,293.81 | -161,393,564.21 | ||||||
| 3.3.1Appropriationtosurplusreserves | ||||||||||
| 3.3.2Appropriationtogeneralreserve | ||||||||||
| 3.3.3Appropriationtoowners(orshareholders) | -120,397,270.40 | -120,397,270.40 | -40,996,293.81 | -161,393,564.21 | ||||||
| 3.3.4Other | ||||||||||
| 3.4Transferswithinowners’equity | 1,628,195.00 | -1,628,195.00 | ||||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves |
KonkaGroupCo.,Ltd.AnnualReport2020
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||||||||||
| 3.4.3Lossoffsetbysurplusreserves | |||||||||||||
| 3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings | |||||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | |||||||||||||
| 3.4.6Other | 1,628,195.00 | -1,628,195.00 | |||||||||||
| 3.5Specificreserve | |||||||||||||
| 3.5.1Increaseintheperiod | |||||||||||||
| 3.5.2Usedintheperiod | |||||||||||||
| 3.6Other | |||||||||||||
| 4.Balanceasattheendoftheperiod | 2,407,945,408.00 | 230,185,310.09 | -16,583,042.42 | 1,211,721,109.67 | 4,595,371,391.63 | 8,428,640,176.97 | 2,292,254,947.67 | 10,720,895,124.64 |
2019
Unit:RMB
| Item | 2019 | ||||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Othe | Subtotal | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||||
KonkaGroupCo.,Ltd.AnnualReport2020
| r | |||||||||||||
| 1.Balanceasattheendoftheprioryear | 2,407,945,408.00 | 208,356,624.21 | -10,538,219.08 | 1,227,564,785.19 | 4,271,408,192.21 | 8,104,736,790.53 | 1,346,631,520.26 | 9,451,368,310.79 | |||||
| Add:Adjustmentforchangeinaccountingpolicy | -2,884,254.62 | -2,884,254.62 | -2,884,254.62 | ||||||||||
| Adjustmentforcorrectionofpreviouserror | |||||||||||||
| Adjustmentforbusinesscombinationundercommoncontrol | |||||||||||||
| Otheradjustments | |||||||||||||
| 2.Balanceasatthebeginningoftheyear | 2,407,945,408.00 | 208,356,624.21 | -10,538,219.08 | 1,227,564,785.19 | 4,268,523,937.59 | 8,101,852,535.91 | 1,346,631,520.26 | 9,448,484,056.17 | |||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 22,011,952.88 | -10,754,884.44 | -15,843,675.52 | -28,760,330.70 | -33,346,937.78 | 511,560,668.41 | 478,213,730.63 | ||||||
| 3.1Totalcomprehensiveincome | -10,754,884.44 | 212,034,210.08 | 201,279,325.64 | 124,654,855.23 | 325,934,180.87 | ||||||||
| 3.2Capitalincreasedandreducedbyowners | -7,393,378.55 | -15,843,675.52 | -23,237,054.07 | 420,402,243.23 | 397,165,189.16 | ||||||||
| 3.2.1Ordinarysharesincreasedbyowners | 437,269,412.06 | 437,269,412.06 | |||||||||||
| 3.2.2Capitalincreasedby |
KonkaGroupCo.,Ltd.AnnualReport2020
| holdersofotherequityinstruments | ||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | ||||||||||
| 3.2.4Other | -7,393,378.55 | -15,843,675.52 | -23,237,054.07 | -16,867,168.83 | -40,104,222.90 | |||||
| 3.3Profitdistribution | -240,794,540.78 | -240,794,540.78 | -45,105,284.66 | -285,899,825.44 | ||||||
| 3.3.1Appropriationtosurplusreserves | ||||||||||
| 3.3.2Appropriationtogeneralreserve | ||||||||||
| 3.3.3Appropriationtoowners(orshareholders) | -240,794,540.78 | -240,794,540.78 | -33,496,430.05 | -274,290,970.83 | ||||||
| 3.3.4Other | -11,608,854.61 | -11,608,854.61 | ||||||||
| 3.4Transferswithinowners’equity | 11,608,854.61 | 11,608,854.61 | ||||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | ||||||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | ||||||||||
| 3.4.3Lossoffsetbysurplusreserves | ||||||||||
| 3.4.4Changesindefinedbenefitschemestransferredtoretained |
KonkaGroupCo.,Ltd.AnnualReport2020
| earnings | |||||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | |||||||||||||
| 3.4.6Other | 11,608,854.61 | 11,608,854.61 | |||||||||||
| 3.5Specificreserve | |||||||||||||
| 3.5.1Increaseintheperiod | |||||||||||||
| 3.5.2Usedintheperiod | |||||||||||||
| 3.6Other | 29,405,331.43 | 29,405,331.43 | 29,405,331.43 | ||||||||||
| 4.Balanceasattheendoftheperiod | 2,407,945,408.00 | 230,368,577.09 | -21,293,103.52 | 1,211,721,109.67 | 4,239,763,606.89 | 8,068,505,598.13 | 1,858,192,188.67 | 9,926,697,786.80 |
8.StatementsofChangesinOwners’EquityoftheCompanyastheParent
2020
Unit:RMB
| Item | 2020 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | ||||||||||
| 1.Balanceasattheendoftheprioryear | 2,407,945,408.00 | 114,018,066.79 | -2,682,217.31 | 1,227,564,785.19 | 2,245,698,875.22 | 5,992,544,917.89 | ||||||
| Add:Adjustmentforchangeinaccountingpolicy | ||||||||||||
KonkaGroupCo.,Ltd.AnnualReport2020
| Adjustmentforcorrectionofpreviouserror | ||||||||||
| Otheradjustments | 19,541,983.67 | 19,541,983.67 | ||||||||
| 2.Balanceasatthebeginningoftheyear | 2,407,945,408.00 | 114,018,066.79 | -2,682,217.31 | 1,227,564,785.19 | 2,265,240,858.89 | 6,012,086,901.56 | ||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -1,447,714.07 | 87,144,146.20 | 85,696,432.13 | |||||||
| 3.1Totalcomprehensiveincome | 207,541,416.60 | 207,541,416.60 | ||||||||
| 3.2Capitalincreasedandreducedbyowners | -1,264,447.07 | -1,264,447.07 | ||||||||
| 3.2.1Ordinarysharesincreasedbyowners | ||||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | ||||||||||
| 3.2.4Other | -1,264,447.07 | -1,264,447.07 | ||||||||
| 3.3Profitdistribution | -120,397,270.40 | -120,397,270.40 | ||||||||
| 3.3.1Appropriationtosurplusreserves | ||||||||||
| 3.3.2Appropriationtoowners(orshareholders) | -120,397,270.40 | -120,397,270.40 | ||||||||
| 3.3.3Other | ||||||||||
| 3.4Transferswithinowners’equity | ||||||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | ||||||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves |
KonkaGroupCo.,Ltd.AnnualReport2020
| 3.4.3Lossoffsetbysurplusreserves | ||||||||||
| 3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings | ||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | ||||||||||
| 3.4.6Other | ||||||||||
| 3.5Specificreserve | ||||||||||
| 3.5.1Increaseintheperiod | ||||||||||
| 3.5.2Usedintheperiod | ||||||||||
| 3.6Other | -183,267.00 | -183,267.00 | ||||||||
| 4.Balanceasattheendoftheperiod | 2,407,945,408.00 | 112,570,352.72 | -2,682,217.31 | 1,227,564,785.19 | 2,352,385,005.09 | 6,097,783,333.69 |
2019
Unit:RMB
| Item | 2019 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | ||||||||||
| 1.Balanceasattheendoftheprioryear | 2,407,945,408.00 | 114,018,066.79 | -1,182,217.31 | 1,227,564,785.19 | 3,040,171,940.85 | 6,788,517,983.52 | ||||||
| Add:Adjustmentforchangeinaccountingpolicy | -2,127,505.16 | -2,127,505.16 | ||||||||||
| Adjustmentforcorrectionofpreviouserror | ||||||||||||
| Otheradjustments | 7,971,211.72 | 7,971,211.72 | ||||||||||
KonkaGroupCo.,Ltd.AnnualReport2020
| 2.Balanceasatthebeginningoftheyear | 2,407,945,408.00 | 114,018,066.79 | -1,182,217.31 | 1,227,564,785.19 | 3,046,015,647.41 | 6,794,361,690.08 | ||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -1,500,000.00 | -800,316,772.19 | -801,816,772.19 | |||||||
| 3.1Totalcomprehensiveincome | -1,500,000.00 | -559,522,231.39 | -561,022,231.39 | |||||||
| 3.2Capitalincreasedandreducedbyowners | ||||||||||
| 3.2.1Ordinarysharesincreasedbyowners | ||||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | ||||||||||
| 3.2.4Other | ||||||||||
| 3.3Profitdistribution | -240,794,540.80 | -240,794,540.80 | ||||||||
| 3.3.1Appropriationtosurplusreserves | ||||||||||
| 3.3.2Appropriationtoowners(orshareholders) | -240,794,540.80 | -240,794,540.80 | ||||||||
| 3.3.3Other | ||||||||||
| 3.4Transferswithinowners’equity | ||||||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | ||||||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | ||||||||||
| 3.4.3Lossoffsetbysurplusreserves | ||||||||||
| 3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings |
KonkaGroupCo.,Ltd.AnnualReport2020
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | ||||||||||
| 3.4.6Other | ||||||||||
| 3.5Specificreserve | ||||||||||
| 3.5.1Increaseintheperiod | ||||||||||
| 3.5.2Usedintheperiod | ||||||||||
| 3.6Other | ||||||||||
| 4.Balanceasattheendoftheperiod | 2,407,945,408.00 | 114,018,066.79 | -2,682,217.31 | 1,227,564,785.19 | 2,245,698,875.22 | 5,992,544,917.89 |
I.CompanyProfile
1.EstablishmentKonkaGroupCo.,Ltd.(hereinafterreferredtoas“Company”or“theCompany”),isajoint-stocklimitedcompanyreorganizedfromtheformerShenzhenKonkaElectronicCo.,Ltd.inAugust1991uponapprovalofthePeople’sGovernmentofShenzhenMunicipality,andhasitsordinaryshares(A-shareandB-share)listedonShenzhenStockExchangewithpriorconsentfromthePeople’sBankofChinaShenzhenSpecialEconomicZoneBranch.On29August1995,theCompanywasrenamedto“KonkaGroupCo.,Ltd.”(Credibilitycode:914403006188155783)withitsmainbusinesselectronicindustry.AndnowtheheadquarterslocatesinNo.28ofNo.12ofKejiSouthRd.,Science&TechnologyPark,YuehaiStreet,NanshanDistrict,Shenzhen,GuangdongProvince.
2.SharecapitalAfterthedistributionofbonusshares,allotments,increasedsharecapitalandnewsharesissuedovertheyears,asof31December2020,theCompanyhasissuedatotalof2,407,945,408.00shares(denominationofRMB1pershare)witharegisteredcapitalofRMB2,407,945,408.00.
3.Thenatureofthecompany'sbusinessandmainoperatingactivitiesTheCompanyanditssubsidiariesaremainlyengagedintheproductionandsalesofcolourTVs,whitegoods,etc.;Industrytradebusiness,environmentalprotection,semi-conductor,etc.
4.ThefinancialstatementscontainedhereinhavebeenapprovedforissuebytheBoardofDirectorsoftheCompanyon22March2021.II.Consolidationscope
1.TheCompanyhasatotalof143subsidiariesincludedintheconsolidationscopeincludingElectronicsTechnology,AnhuiKonka,DongguanKonka.TheconsolidationscopeoftheCompanythisyearincreasedby30householdsincludingYibinKangrunduetoincorporationorexternalpurchaseanddecreasedby33householdsincludingDongguanKonkaInvestmentduetolosingcontrolorcancellationcomparedtothepreviousyear.Fordetails,pleaserefertoNote7“Changesintheconsolidationscope”andNote8"EquityinOtherEntities".
2.AchecklistofcorporatenamesandtheirabbreviationsmentionedinthisReport
| No. | Corporatename | Abbreviation |
| 1 | KonkaVenturesDevelopment(Shenzhen)Co.,Ltd. | KonkaVentures |
| 2 | YantaiKonkaHealthcareEnterpriseServiceCo.,Ltd. | YantaiKonka |
| 3 | ChengduAnrenKonkaCulturalandCreativeIncubatorManagementCo.,Ltd. | ChengduAnren |
| 4 | GuiyangKonkaEnterpriseServiceCo.,Ltd. | KonkaEnterpriseService |
| 5 | NanjingChuanghuiSmartTechnologyCo.,Ltd. | ChuanghuiSmart |
| 6 | YibinKonkaIncubatorManagementCo.,Ltd. | YibinKonkaIncubator |
| 7 | AnhuiKonkaElectronicCo.,Ltd. | AnhuiKonka |
| 8 | AnhuiKangzhiTradeCo.,Ltd. | KangzhiTrade |
| 9 | KonkaFactoring(Shenzhen)Co.,Ltd. | KonkaFactoring |
| 10 | ShenzhenKonkaUnifortuneTechnologyCo.,Ltd. | KonkaUnifortune |
| No. | Corporatename | Abbreviation |
| 11 | JialiInternational(HongKong)Limited | JialiInternational |
| 12 | ShenzhenWankaidaScienceandTechnologyCo.,Ltd. | Wankaida |
| 13 | DongguanKonkaElectronicCo.,Ltd. | DongguanKonka |
| 14 | SuiningKonkaSmartTechnologyCo.,Ltd. | SuiningKonkaSmart |
| 15 | Konka(Europe)Co.,Ltd. | KonkaEurope |
| 16 | ShenzhenKonkaElectricalAppliancesCo.,Ltd. | KonkaElectricalAppliances |
| 17 | ShenzhenKonkaTelecommunicationsTechnologyCo.,Ltd. | TelecommunicationTechnology |
| 18 | KonkaMobilityCo.,Limited | KonkaMobility |
| 19 | ShenzhenKonkaMobileInterconnectionTechnologyCo.,Ltd. | MobileInterconnection |
| 20 | SichuanKonkaSmartTerminalTechnologyCo.,Ltd | SichuanKonka |
| 21 | YibinKonkaSmartTechnologyCo.,Ltd. | YibinSmart |
| 22 | AnhuiKonkaTongchuangElectricalAppliancesCo.,Ltd. | AnhuiTongchuang |
| 23 | AnhuiKonkaElectricalApplianceTechnologyCo.,Ltd. | AnhuiElectricalAppliance |
| 24 | HenanFrestecRefrigerationApplianceCo.,Ltd. | FrestecRefrigeration |
| 25 | HenanFrestecSmartHomeTechnologyCo.,Ltd. | FrestecSmartHome |
| 26 | HenanFrestecElectricalAppliancesCo.,Ltd. | FrestecElectricalAppliances |
| 27 | HenanFrestecHouseholdAppliancesCo.,Ltd. | FrestecHouseholdAppliances |
| 28 | JiangsuKonkaSmartElectricalAppliancesCo.,Ltd. | JiangsuKonkaSmart |
| 29 | SichuanKangjiatongTechnologyCo.,Ltd. | Kangjiatong |
| 30 | ShenzhenKonkaPengrunTechnology&IndustryCo.,Ltd. | PengrunTechnology |
| 31 | JiaxinTechnologyCo.,Ltd. | JiaxinTechnology |
| 32 | DongguanKonkaPackingMaterialsCo.,Ltd. | DongguanPacking |
| 33 | ShenzhenE2infoNetworkTechnologyCo.,Ltd. | E2info |
| 34 | E2info(Hainan)NetworkTechnologyCo.,Ltd. | E2info(Hainan) |
| 35 | BeijingKonkaElectronicCo.,Ltd. | BeijingKonkaElectronic |
| 36 | KonkaFinancialLeasing(Tianjin)Co.,Ltd. | KonkaLeasing |
| 37 | ShenzhenKangjiacircuitCo.,Ltd. | KonkaCircuit |
| 38 | BoluoKonkaPrecisionTechnologyCo.,Ltd. | BoluoKonkaPrecision |
| 39 | XiamenDalongTradingCo.,Ltd. | XiamenDalong |
| 40 | BoluoKonkaPCBCo.,Ltd. | BoluoKonka |
| 41 | HongKongKonkaLimited | HongKongKonka |
| 42 | KonkaElectricalAppliancesInvestment&DevelopmentCo.,Ltd. | KonkaElectricalAppliancesInvestment |
| 43 | ChainKingdomMemoryTechnologiesCo.,Limited | ChainKingdomMemoryTechnologies |
NotestotheFinancialStatementsofKonkaGroupCo.,Ltd.
FortheYearfrom1January2020to31December2020(allamountsinRMByuanunlessotherwisestated)
| No. | Corporatename | Abbreviation |
| 44 | ChainKingdomMemoryTechnologies(Shenzhen)Co.,Ltd. | ChainKingdomMemoryTechnologies(Shenzhen) |
| 45 | HefeiKONSEMIStorageTechnologyCo.,Ltd. | HefeiKONSEMI |
| 46 | KonkaSmartTechLimited | KonkaSmartTech |
| 47 | Kangjietong(HongKong)Limited | Kangjietong |
| 48 | KonkaElectricalAppliancesInternationalTradingCo.,Ltd. | KonkaElectricalAppliancesInternationalTrading |
| 49 | KanghaoTechnologyCo.,Ltd. | KanghaoTechnology |
| 50 | KonkaNorthAmericaLLC | KonkaNorthAmerica |
| 51 | ShenzhenKonkaInvestmentHoldingCo.,Ltd. | KonkaInvestment |
| 52 | YibinKonkaTechnologyParkOperationCo.,Ltd. | YibinKonkaTechnologyPark |
| 53 | ShenzhenKonkaCapitalEquityInvestmentManagementCo.,Ltd. | KonkaCapital |
| 54 | KonkaSuiyongInvestment(Shenzhen)Co.,Ltd. | KonkaSuiyong |
| 55 | ShenzhenKangquanEnterpriseManagementConsultingCo.,Ltd. | KangquanEnterprise |
| 56 | ShenzhenKonkaSuyuanInvestmentIndustrialCo.,Ltd. | KonkaSuyuan |
| 57 | ShenzhenKonkaShengxingIndustrialCo.,Ltd. | ShengxingIndustrial |
| 58 | ShenzhenKonkaIndustrialParkDevelopmentCo.,Ltd. | IndustrialParkDevelopment |
| 59 | ShenzhenKonkaZhitongTechnologyCo.,Ltd. | ZhitongTechnology |
| 60 | ShenzhenKonkaElectronicsTechnologyCo.,Ltd. | ElectronicsTechnology |
| 61 | AnhuiKonkaZhilianE-CommerceCo.,Ltd. | AnhuiZhilian |
| 62 | ShenzhenYouzhihuiTechnologyCo.,Ltd. | Youzhihui |
| 63 | ShenzhenXiaojiaTechnologyCo.,Ltd. | XiaojiaTechnology |
| 64 | HaimenKonkaSmartTechnologyCo.,Ltd. | HaimenKonka |
| 65 | ChengduKonkaSmartTechnologyCo.,Ltd. | ChengduKonkaSmart |
| 66 | ChengduKonkaElectronicCo.,Ltd. | ChengduKonkaElectronic |
| 67 | GuangDongXingDaHongYeElectronicCo.,Ltd. | XingDaHongYe |
| 68 | ShanghaiXinfengZhuoqunPCBCo.,Ltd. | ShanghaiXinfeng |
| 69 | LiaoyangKangshunSmartTechnologyCo.,Ltd. | LiaoyangKangshunSmart |
| 70 | LiaoyangKangshunRenewableEnergyCo.,Ltd. | LiaoyangKangshunRenewable |
| 71 | NanjingKonkaElectronicsCo.,Ltd. | NanjingKonka |
| 72 | YantaiLaikangIndustrialDevelopmentCo.,Ltd. | YantaiLaikang |
| 73 | ShandongEconTechnologyCo.,Ltd. | EconTechnology |
| 74 | BeijingEconRunfengTechnologyCo.,Ltd. | BeijingEcon |
| 75 | ShanghaiJiyiEnvironmentalTechnologyCo.,Ltd. | ShanghaiJiyi |
| 76 | BinzhouEconZhongkeEnvironmentalTechnologyCo.,Ltd. | BinzhouEconZhongke |
| No. | Corporatename | Abbreviation |
| 77 | LaizhouLairunHoldingCo.,Ltd. | LairunHolding |
| 78 | LaizhouLairunEnvironmentalProtectionCo.,Ltd. | LairunEnvironmentalProtection |
| 79 | LaizhouLairunWastewaterTreatmentCo.,Ltd. | LairunWastewater |
| 80 | LaizhouBinhaiWastewaterTreatmentCo.,Ltd. | BinhaiWastewater |
| 81 | EconEnvironmentalEngineeringCo.,Ltd. | EconEnvironmentalEngineering |
| 82 | RushanEconWaterEnvironmentManagementCo.,Ltd. | RushanEcon |
| 83 | BinzhouWeiyijieEnvironmentalTechnologyCo.,Ltd. | BinzhouWeiyijie |
| 84 | BinzhouBeihaiJingmaiIndustrialDevelopmentCo.,Ltd. | BinzhouBeihaiJingmai |
| 85 | YantaiChunzhiranEnvironmentalTechnologyCo.,Ltd. | Chunzhiran |
| 86 | DonggangKangrunEnvironmentalManagementCo.,Ltd. | DonggangKangrun |
| 87 | KangrunhongEnvironmentalTechnology(Yantai)Co.,Ltd. | KangrunhongEnvironmental |
| 88 | DayiKangrunWaterCo.,Ltd. | DayiKangrunWater |
| 89 | SuiningPengxiKangrunEnvironmentalManagementCo.,Ltd. | SuiningPengxiKangrun |
| 90 | SubeiMongolAutonomousCountyKangrunWaterCo.,Ltd. | SubeiKangrunWater |
| 91 | WeifangSihaiKangrunInvestmentOperationCo.,Ltd. | WeifangSihaiKangrun |
| 92 | LushanKangrunEnvironmentalManagementCo.,Ltd. | LushanKangrunEnvironmental |
| 93 | FunanKangrunWaterCo.,Ltd. | FunanKangrunWater |
| 94 | WuhanRunyuanWastewaterTreatmentCo.,Ltd. | WuhanRunyuanWastewater |
| 95 | TongchuanKangrunHonghuiEnvironmentalManagementCo.,Ltd. | TongchuanKangrunHonghui |
| 96 | TingyuanEnvironmentalTechnology(Shanghai)Co.,Ltd. | TingyuanEnvironmental |
| 97 | GaopingKangrunEnvironmentalProtection&WaterCo.,Ltd. | GaopingKangrun |
| 98 | MengchengKangrunAnjianWaterCo.,Ltd. | MengchengKangrun |
| 99 | XixianKangrunXijianWaterEnvironmentDevelopmentCo.,Ltd. | XixianKangrun |
| 100 | ChongzhouKangrunEnvironmentCo.,Ltd. | ChongzhouKangrun |
| 101 | Xi’anGaolingKangrunEnvironmentalEngineeringCo.,Ltd. | Xi’anKangrun |
| 102 | AnkangKangrunXinhengWaterEnvironmentCo.,Ltd. | AnkangKangrun |
| 103 | ChangningKangrunWaterCo.,Ltd. | ChangningKangrun |
| 104 | BokangRenewableResources(Yantai)Co.,Ltd. | BokangRenewable |
| 105 | LinfenKangrunJinzeWaterSupplyCo.,Ltd. | LinfenKangrun |
| 106 | KonkaHuanjia(Dalian)EnvironmentalTechnologyCo.,Ltd. | KonkaHuanjia |
| 107 | KonkaHuanjia(Henan)EnvironmentalTechnologyCo.,Ltd. | KonkaHuanjia(Henan) |
| 108 | ShanghaiKonkaIndustrialCo.,Ltd. | ShanghaiKonka |
| 109 | YantaiKangjinTechnologyDevelopmentCo.,Ltd. | YantaiKangjin |
| 110 | JiangxiKonkaNewMaterialTechnologyCo.,Ltd. | JiangxiKonka |
| 111 | JiangxiXinfengMicrocrystallineJadeCo.,Ltd. | XinfengMicrocrystalline |
| No. | Corporatename | Abbreviation |
| 112 | JiangxiGoldenPhoenixNanoCrystallizedGlassCo.,Ltd. | NanoCrystallizedGlass |
| 113 | JiangsuKonkaSpecialMaterialTechnologyCo.,Ltd. | JiangsuKonkaSpecialMaterial |
| 114 | ShenzhenNianhuaEnterpriseManagementCo.,Ltd. | ShenzhenNianhua |
| 115 | ShenzhenKONSEMICo.,Ltd. | ShenzhenKONSEMI |
| 116 | HefeiKONSEMIStorageTechnologyCo.,Ltd. | HefeiKONSEMI |
| 117 | HefeiYiheElectronicCo.,Ltd. | YiheElectronic |
| 118 | ChongqingKonkaTechnologyDevelopmentCo.,Ltd. | ChongqingKonka |
| 119 | ShenzhenKonkaHuiyingTechnologyCo.,Ltd. | ShenzhenHuiyingTechnology |
| 120 | ChongqingKonkaHuiyingTechnologyCo.,Ltd. | ChongqingHuiyingTechnology |
| 121 | ShenzhenKonkaEco-DevelopmentInvestmentCo.,Ltd. | KonkaEco-Development |
| 122 | SuiningKonkaIndustrialParkDevelopmentCo.,Ltd. | SuiningKonkaIndustrialPark |
| 123 | KonkaRongheIndustrialTechnology(Zhejiang)Co.,Ltd. | KonkaRonghe |
| 124 | SuiningKonkaElectronicTechnologicalInnovationCo.,Ltd. | SuiningElectronicTechnologicalInnovation |
| 125 | ShenzhenKonkaChuangzhiElectricalAppliancesCo.,Ltd. | ShenzhenChuangzhiElectricalAppliances |
| 126 | Kanghong(Yantai)EnvironmentalTechnologyCo.,Ltd. | Kanghong(Yantai)Environmental |
| 127 | ChongqingKangxingruiEnvironmentalTechnologyCo.,Ltd. | ChongqingKangxingrui |
| 128 | ChongqingKangxingruiScrapedAutomobileRecyclingCo.,Ltd. | ChongqingKangxingruiAutomobileRecycling |
| 129 | ChongqingKonkaOptoelectronicTechnologyResearchInstituteCo.,Ltd. | ChongqingOptoelectronicTechnologyResearchInstitute |
| 130 | KonkaXinyingSemiconductorTechnology(Shenzhen)Co.,Ltd. | XinyingSemiconductor |
| 131 | KonkaXinyunSemiconductorTechnology(Yancheng)Co.,Ltd. | KonkaXinyunSemiconductor |
| 132 | Jiangkang(Shanghai)TechnologyCo.,Ltd. | Jiangkang(Shanghai)Technology |
| 133 | NingboKanghanruiElectricalAppliancesCo.,Ltd. | NingboKanghanruiElectricalAppliances |
| 134 | ShenzhenKonkaIntelligentManufacturingTechnologyCo.,Ltd. | KonkaIntelligentManufacturing |
| 135 | SuiningJiarunPropertyCo.,Ltd. | SuiningJiarunProperty |
| 136 | YantaiKangyunIndustrialDevelopmentCo.,Ltd. | YantaiKangyun |
| 137 | YantaiKangyunPropertyDevelopmentCo.,Ltd. | YantaiKangyunProperty |
| 138 | ChongqingKangleiOptoelectronicTechnologyCo.,Ltd. | ChongqingKangleiOptoelectronic |
| 139 | YibinKangrunEnvironmentalTechnologyCo.,Ltd. | YibinKangrun |
| 140 | HenanKangxinPropertyCo.,Ltd. | HenanKangxinProperty |
| 141 | HainanKonkaMaterialTechnologyCo.,Ltd. | KonkaMaterial |
| 142 | ShenzhenKangxinPropertyCo.,Ltd. | ShenzhenKangxinProperty |
| No. | Corporatename | Abbreviation |
| 143 | HenanKanghanPropertyCo.,Ltd. | HenanKanghanProperty |
| 144 | ChengduKonkaIncubatorManagementCo.,Ltd. | ChengduKonkaIncubator |
| 145 | ShenzhenKonkaCross-BorderTechnologicalInnovationServiceCo.,Ltd. | Cross-BorderTechnologicalInnovation |
| 146 | GuizhouKonkaEnterpriseManagementServiceCo.,Ltd. | KonkaEnterpriseManagement |
| 147 | YoushiKangrongCultureCommunicationCo.,Ltd. | YoushiKangrong |
| 148 | ShenzhenKonkaLifeElectricApplianceCo.,Ltd. | LifeElectricAppliance |
| 149 | ShenzhenKonkaCommercialSystemTechnologyCo.,Ltd. | CommercialSystemTechnology |
| 150 | HenanFrestecSmartEcoElectricalAppliancesCo.,Ltd. | FrestecSmart |
| 151 | E3info(Hainan)TechnologyCo.,Ltd. | E3info |
| 152 | ShenzhenKonkaYifangTechnologyCo.,Ltd. | YifangTechnology |
| 153 | YuekangSemiconductorTechnology(Yantai)Co.,Ltd. | YuekangSemiconductor |
| 154 | KangshiVirtualTechnology(Yantai)Co.,Ltd. | KangshiVirtual |
| 155 | SichuanKonkaIndustrialNewTownDevelopmentCo.,Ltd. | IndustrialNewTown |
| 156 | ShenzhenKonkaKangxinTechnologyCo.,Ltd. | KangxinTechnology |
| 157 | HainanKonkaTechnologyIndustryDevelopmentCo.,Ltd. | HainanTechnology |
| 158 | NanjingKonkaSmartTechnologyCo.,Ltd. | NanjingKonka |
| 159 | ZhongshanKangxinElectronicTechnologyCo.,Ltd. | ZhongshanKangxinElectronic |
| 160 | ZhongshanKang’aoElectronicCo.,Ltd. | ZhongshanKang’ao |
| 161 | BoxingXingkangEnvironmentalTechnologyCo.,Ltd. | BoxingXingkangEnvironmental |
| 162 | YantaiKonkaIndustrialCo.,Ltd. | YantaiKonkaIndustrial |
| 163 | ShandongKangxinIndustrialDevelopmentCo.,Ltd. | ShandongKangxin |
| 164 | ShenzhenMorsemiSemiconductorTechnologyCo.,Ltd. | ShenzhenMorsemi |
| 165 | ChongqingZhengmaoSemiconductorCo.,Ltd. | ZhengmaoSemiconductor |
| 166 | DongguanKonkaInvestmentCo.,Ltd. | DongguanKonkaInvestment |
| 167 | Kanghong(Yantai)EnvironmentalTechnologyParkCo.,Ltd. | Kanghong(Yantai)EnvironmentalTechnologyPark |
| 168 | ChongqingKonkaPropertyDevelopmentCo.,Ltd. | ChongqingKonkaPropertyDevelopment |
| 169 | ChongqingKonkaXingyiPropertyCo.,Ltd. | ChongqingXingyiProperty |
| 170 | ChongqingKonkaFuzePropertyCo.,Ltd. | ChongqingFuzeProperty |
| 171 | AnhuiKonkaDebaoNewMaterialTechnologyCo.,Ltd. | DebaoNewMaterial |
| 172 | ChuzhouKangxinHealthIndustryDevelopmentCo.,Ltd. | ChuzhouKangxinHealthIndustry |
| 173 | HubeiKangxinlongEnvironmentalProtectionCo.,Ltd. | KangxinlongEnvironmentalProtection |
| 174 | ChongqingChengdaPropertyCo.,Ltd. | ChongqingChengda |
| No. | Corporatename | Abbreviation |
| 175 | ChongqingChunfuPropertyCo.,Ltd. | ChongqingChunfu |
| 176 | ChongqingLanghengPropertyCo.,Ltd. | ChongqingLangheng |
| 177 | MorsemiSemiconductorTechnology(HongKong)Limited | MorsemiHongKong |
III.BasisforthePreparationofFinancialStatements
(1)BasicforthepreparationWiththegoing-concernassumptionasthebasisandbasedontransactionsandothereventsthatactuallyoccurred,theCompanypreparedfinancialstatementsinaccordancewithTheAccountingStandardsforBusinessEnterprisesissuedbytheMinistryofFinanceandotherregulationsaswellastheaccountingpoliciesandestimationsstipulatedintheNoteIV“SignificantAccountingPoliciesandEstimations”.
(2)Going-concernTheCompanydoesnotundergoanyaffairorsituationthatcausesmajordoubtaboutthecontinuousoperationcapacitywithin12monthsfromtheendoftheReportingPeriod.IV.ImportantAccountingPoliciesandEstimationsThespecificaccountingpoliciesandaccountingestimatesformulatedbythecompanybasedontheactualproductionandoperationcharacteristicsincludetherecognitionandmeasurementofbaddebtprovisionforreceivables,themeasurementofissuedinventories,theclassificationoffixedassetsanddepreciationmethods,amortizationofintangibleassets,revenuerecognitionandmeasurement,etc.
1.StatementofCompliancewiththeAccountingStandardsforBusinessEnterprisesThefinancialstatementspreparedbytheCompanyareincompliancewithincompliancewiththeAccountingStandardsforBusinessEnterprises,whichfactuallyandcompletelypresenttheCompany’sfinancialpositions,businessresultsandcashflows,andotherrelevantinformation.
2.FiscalPeriodTheCompany’sfiscalyearstartsonJanuary1andendsonDecember31ofeveryyearaccordingtotheGregoriancalendar.
3.OperatingCycleAnoperatingcyclefortheCompanyis12months,whichisalsotheclassificationcriterionfortheliquidityofitsassetsandliabilities.
4.RecordingCurrencyTheCompanyadoptedRenminbiasthebookkeepingbasecurrency.
5.AccountingTreatmentMethodsforBusinessCombinationsundertheSameControlornotundertheSameControlAsthecombiningparty,theassetsandliabilitiesobtainedbytheCompanyinabusinesscombinationunderthesamecontrolshallbemeasuredonthebasisoftheircarryingvalueinthefinalcontrollingpartyonthecombiningdate.Asforthebalancebetweenthecarryingvalueofthe
netassetsobtainedandthecarryingvalueoftheconsiderationpaidbyit,thecapitalreserveshallbeadjusted.Ifthecapitalreserveisnotsufficienttobeoffset,theretainedearningsshallbeadjusted.Theidentifiableassets,liabilitiesandcontingentliabilitiesoftheacquireeacquiredinthebusinesscombinationunderdifferentcontrolshallbemeasuredatfairvalueontheacquisitiondate.Themergercostisthesumofthefairvalueofcashornon-cashassets,liabilitiesissuedorassumed,equitysecuritiesissued,etc.paidbytheCompanyonthepurchasedatetogaincontroloverthepurchasedpartyandalldirectlyrelatedexpensesincurredinthebusinesscombination(Themergecostofbusinesscombinationrealizedstepbystepthroughmultipletransactionsisthesumofeverysingletransaction’scost).Thebalancethatthecombinedcostgreaterthanthefairvalueshareoftheidentifiablenetassetsofthepurchasedpartyobtainedinthecombinationshallberecognizedasgoodwill;Whenthemergercostislessthanthefairvalueshareoftheidentifiablenetassetsoftheacquireeacquiredinthemerger,thefairvalueofallidentifiableassets,liabilitiesandcontingentliabilitiesacquiredinthemerger,andnon-cashassetsofthemergerconsiderationorequitysecuritiesissued,etc.shallbereviewedfirst.Afterreview,ifthemergercostisstilllessthanthefairvalueshareoftheidentifiablenetassetsoftheacquireeacquiredinthemerger,thedifferenceshallbeincludedinthenon-operatingincomeofthemergerperiod.
6.MethodsforPreparingConsolidatedFinancialStatementsThescopeofconsolidationincludestheCompanyanditsallsubsidiaries.ThefinancialstatementsofsubsidiariesareadjustedinaccordancewiththeaccountingpoliciesandaccountingperiodoftheGroupduringthepreparationoftheconsolidatedfinancialstatements,wheretheaccountingpoliciesandtheaccountingperiodsareinconsistentbetweentheGroupandsubsidiaries.Allsignificantinternaltransactions,currentbalancesandunrealizedprofitswithinthescopeofconsolidationshallbeoffsetwhenpreparingtheconsolidatedstatement.Thesharesofthesubsidiary'sowner'sequitythatdonotbelongtotheparentcompanyandthesharesofminorityshareholders'equityincurrentnetprofitandloss,othercomprehensiveincomeandtotalcomprehensiveincomeshallberespectivelylistedintheconsolidatedfinancialstatement"Minorityshareholders'equity,minorityshareholders'profitandloss,othercomprehensiveincomethatbelongstominorityshareholdersandtotalcomprehensiveincomethatbelongstominorityshareholders".Forsubsidiariesacquiredthroughmergerofenterprisesunderthesamecontrol,theiroperatingresultsandcashflowsareincludedintheconsolidatedfinancialstatementsfromthebeginningofthecurrentmergerperiod.Whenpreparingthecomparativeconsolidatedfinancialstatements,therelevantitemsinthefinancialstatementsofthepreviousyearshallbeadjustedasiftheconsolidatedreportingentityhadexistedsincethefinalcontrollingpartybegantocontrolit.ThetreatmentmethodofsupplementarydisclosureinconsolidatedfinancialstatementfortheReportingPeriodwhenthecontrollingrightisacquired,iftheequityoftheinvestedorganizationunderthesamecontrolissuccessivelyobtainedthroughseveraltransactionsandeventuallytheenterprisemergerisconducted.Forexample:Attheoccasionoftheequityoftheinvesteeunderthesamecontrolisacquiredstepbystepthroughmultipletransactions,andfinallyformthebusinesscombination,whenpreparingtheconsolidatedstatement,itshallbedeemedastheadjustmentismadeinthecurrentstatewhenthefinalcontrollingpartystartstocontrol.Andwhencompilingthecomparativereport,theassetsandliabilitiesofthemergedpartyshallbemergedintothecomparativestatementoftheconsolidatedfinancialstatementsoftheconsolidatedCompanywithoutanyearlierthanthetimewhentheCompanyandthemergedparty
areunderthecontroloftheultimatecontrollingparty,andthecombinednetincreasedassetsshallbeadjustedtotherelevantitemsunderowners'equityinthecomparativestatements.Inordertoavoidthere-calculationofthenetassetsvalueofthemergedparty,thelong-termequityinvestmentheldbytheCompanybeforethemerger,theconfirmedrelevantprofitandlossonthesamepartywiththeCompanyandthemergedpartyonthedateofacquisitionoftheoriginalequityfromthefinalcontroldatetothemergerdate,andchangesofothercomprehensiveincomeandothernetassetsshalloffsetthebeginningretainedearningsandcurrentprofitsandlossesofthecomparativestatementperiodrespectively.Forsubsidiariesacquiredthroughbusinesscombinationunderthedifferentcontrol,theoperatingresultsandcashflowshallbeincludedintheconsolidatedfinancialstatementsfromthedatewhentheCompanyobtainsthecontrolright.Whenpreparingtheconsolidatedfinancialstatements,thefinancialstatementsofthesubsidiariesshallbeadjustedonthebasisofthefairvalueoftheidentifiableassets,liabilitiesandcontingentliabilitiesdeterminedontheacquisitiondate.ThetreatmentmethodofsupplementarydisclosureinconsolidatedfinancialstatementfortheReportingPeriodwhenthecontrollingrightisacquired,iftheequityoftheinvestedorganizationnotunderthesamecontrolissuccessivelyobtainedthroughseveraltransactionsandeventuallytheenterprisemergerisconducted.Forexample:Attheoccasionoftheequityoftheinvesteeunderdifferentcontrolisacquiredstepbystepthroughmultipletransactionsandeventuallyformthebusinesscombination,whenpreparingtheconsolidatedstatement,theequityoftheinvesteeheldbeforethepurchasedateisre-measuredaccordingtothefairvalueoftheequityonthepurchasedate,andthedifferencebetweenthefairvalueanditsbookvalueisincludedinthecurrentinvestmentincome.Theequityoftheacquireeheldbeforetherelevantpurchasedateinvolvesothercomprehensiveincomeundertheequitymethodandotherchangesinowner'sequityotherthannetprofitandloss,othercomprehensiveincomeandprofitdistribution,whichareconvertedintoinvestmentprofitandlossinthecurrentperiodofthepurchasedate,exceptforothercomprehensiveincomearisingfromtheremeasurementofdefinedbenefitplans'snetliabilitiesorchangesinnetassetsbytheinvestee.TheCompanypartiallydisposesoflong-termequityinvestmentsinsubsidiarieswithoutlosingcontrol,whenpreparingtheconsolidatedfinancialstatements,thedifferencebetweenthedisposalpriceandtheshareofnetassetsthatthesubsidiarieshavecontinuouslycalculatedsincethedateofpurchaseorthedateofconsolidationiscorrespondingtothedisposaloflong-termequityinvestments.Thecapitalpremiumorequitypremiumisadjusted.Ifthecapitalreserveisinsufficienttooffset,theretainedearningsareadjusted.IftheCompanylosescontrolovertheinvesteeduetothedisposalofsomeequityinvestmentsandotherreasons,theremainingequityshallbere-measuredatitsfairvalueonthedateoflossofcontrolwhenpreparingtheconsolidatedfinancialstatements.Thedifferencebetweenthesumoftheconsiderationobtainedfromthedisposalofequityandthefairvalueoftheremainingequity,minustheshareofthenetassetsoftheoriginalsubsidiarycalculatedonthebasisoftheoriginalshareholdingratioandcontinuouslycalculatedfromthedateofpurchaseormerger,isincludedintheinvestmentprofitandlossofthecurrentperiodwhenthecontrolrightislost,andgoodwillisoffset.Othercomprehensiveincomerelatedtotheoriginalsubsidiary'sequityinvestment,etc.,willbetransferredtothecurrentinvestmentprofitandlosswhenthecontrolrightislost.
IftheCompanydisposesoftheequityinvestmentinasubsidiarycompanystepbystepthroughmultipletransactionsuntilthelossofcontrolright,ifthetransactionsofthedisposaloftheequityinvestmentinasubsidiarycompanyuntilthelossofcontrolrightbelongtoapackagetransaction,thetransactionsshallbetreatedastransactionsofthedisposalofthesubsidiarycompanyandthelossofcontrolrightforaccounting.However,thedifferencebetweenthedisposalpriceandtheshareofthesubsidiary'snetassetscorrespondingtothedisposalinvestmentbeforethelossofcontrolrightisrecognizedasothercomprehensiveincomeintheconsolidatedfinancialstatements,andistransferredtotheinvestmentprofitandlossofthecurrentperiodwhenthecontrolrightislost.
7.ClassificationofJointArrangementsandAccountingTreatmentofJointOperationsTheCompanyclassifiesjointarrangementsintojointoperationsandjointventures.Forajointoperation,theCompany,asajointoperator,recognizestheassetsandliabilitiesthatitholdsandbearsinthejointoperation,andrecognizesthejointly-heldassetsandjointly-borneliabilitiesaccordingtotheCompany’sstakeinthejointoperation;recognizesrelevantincomeandexpenseaccordingtotheCompany’sstakeinthejointoperation.WhentheCompanypurchasesorsellstheassetsnotconstitutingbusinesswiththejointoperation,theCompanyonlyrecognizedtheshareoftheotherjointoperatorsinthegainsandlossesarisingfromthetransaction.
8.CashandCashEquivalentsIntheCompany’sunderstanding,thecashinthecashflowstatementincludescashonhandanddepositsthatcanbeusedforcover,thecashequivalentsinthecashflowstatementincludehighcirculatinginvestmentsheldwithinthreemonthswhichareeasilyconvertibleintoknownamountofcashandwhoserisksinchangeofvalueareminimal.
9.ForeignCurrencyBusinessesandTranslationofForeignCurrencyFinancialStatements
(1)ForeigncurrencytransactionAsforforeigncurrencytransaction,theCompanyconvertedtheforeigncurrencyamountintoRMBamountattheexchangerateatthebeginningofthemonthoftransactionoccurrencedate(normallyreferredtoasthecentralparityrateofforeignexchangerateonthesamedaypublishedbythePeople’sBankofChina,thesamebelow).Onthebalancesheetdate,themonetaryitemsinforeigncurrencywereconvertedintoRMBatthespotexchangerateonbalancesheetdate.Excepttheexchangedifferencearisingfromspecialforeign-currencyborrowingforthepurposeofconstructionorproductionofassetsmeetingcapitalizationconditionstreatedintheprincipleofcapitalization,theconversiondifferencewasdirectlyincludedinthecurrentprofitsandlosses.
(2)TranslationofforeigncurrencyfinancialstatementTheassetandliabilityitemsinforeigncurrencybalancesheetwereconvertedatthespotexchangerateonbalancesheetdate;exceptfor“undistributedprofit”,owner’sequityitemswereconvertedatthesportexchangerateatthetimeofbusinessoccurrence;incomeandexpenditureitemsinincomestatementwereconvertedattheaverageexchangeratefortheperiod(monthlyaverageexchangerate)ofthetransactionoccurrencedate.Theconversiondifferenceofforeigncurrencystatementsarisingfromtheaforementionedconversionwaspresentedinothercomprehensiveincomeitem.Theforeigncurrencycashflowwasconvertedattheaverageexchangeratefortheperiod(monthlyaverageexchangerate)ofthecashflowoccurrencedate.Theamountofexchangeratechangeinfluenceoncashwasindependentlypresentedincashflowstatement.
10.FinancialAssetsandFinancialLiabilitiesTheCompanyrecognizesafinancialassetorliabilitywhenitbecomesapartyoftherelevantfinancialinstrumentcontract.
(1)Financialassets
1)Classification,recognitionandmeasurementoffinancialassetsTheCompanyclassifiesthefinancialassetsintofinancialassetsmeasuredatamortizedcost,financialassetsmeasuredbythefairvalueandthechangesrecordedinothercomprehensiveincomeandfinancialassetsatfairvaluethroughprofitorlossbasedonthebusinessmodelforfinancialassetsmanagementandcharacteristicsofcontractualcashflowoffinancialassetsTheCompanyclassifiedthefinancialassetsmeetingthefollowingconditionsatthesametimeasfinancialassetsatamortizedcost:①ThebusinessmodeoftheCompanytomanagethefinancialassetstargetsatcollectingthecontractualcashflow.②Thecontractofthefinancialassetsstipulatesthatthecashflowgeneratedinthespecificdateisthepaymentoftheinterestbasedontheprincipalandoutstandingprincipalamount.Thesefinancialassetsinitiallymeasuredatfairvalueandrelevanttransactioncostshallbeincludedintotheinitialrecognizedamountandsubsequentlymeasuredatamortizedcost.Exceptforthosedesignatedtobehedgeitems,thedifferencebetweentheinitialrecognizedamountandtheamountdueshallbeamortizedatactualinterestrateandtheiramortization,impairmentandexchangegainandlossaswellasgainsorlossesarisingfromderecognitionshallberecordedintothecurrentprofitorloss.TheCompanyclassifiedthefinancialassetsmeetingthefollowingconditionsatthesametimeasfinancialassetsatfairvaluethroughothercomprehensiveincome:①TheBusinessmodeformanagingfinancialassetsoftheCompanytakescontractcashflowcollectedastargetandsellingastarget.②Thecontractofthefinancialassetsstipulatesthatthecashflowgeneratedinthespecificdateisthepaymentoftheinterestbasedontheprincipalandoutstandingprincipalamount.Thesefinancialassetsinitiallymeasuredatfairvalueandrelevanttransactioncostshallbeincludedintotheinitialrecognizedamount.Exceptforthosedesignatedashedgeditems,asforthesefinancialassets,exceptforgainsorlossesoncreditimpairment,exchangegainandlossandinterestoffinancialassetsmeasuredatactualinterestrate,othergainsorlossesgeneratedshallberecordedintoothercomprehensiveincome.Whenderecognized,theaccumulatedgainsandlossesoriginallyrecordedintoothercomprehensiveincomeshallbetransferredoutintothecurrentprofitorloss.TheCompanyrecognizesinterestincomeaccordingtotheeffectiveinterestratemethod.Interestincomeiscalculatedanddeterminedaccordingtothebookbalanceofthefinancialassetmultipliedbytheactualinterestrate,exceptforthefollowingcircumstances:①Forthefinancialassetwithcreditimpairmentthathasbeenpurchasedororiginated,fromtheinitialrecognition,theinterestincomeiscalculatedanddeterminedaccordingtotheamortizedcostofthefinancialassetandtheactualinterestrateadjustedbycredit.②Forfinancialassetspurchasedororiginatedthathavenotsufferedcreditimpairmentbuthavesufferedcreditimpairmentinsubsequentperiods,theinterestincomeshallbecalculatedanddeterminedaccordingtotheamortizedcostandactualinterestrateofthefinancialassetsinsubsequentperiods.TheCompanydesignatesnon-transactionalinvestmentinequityinstrumentsasfinancialassetsatfairvaluethroughothercomprehensiveincome.Thosedesignatednon-transactionalinvestmentinequityinstrumentsbytheCompanyisinitiallymeasuredatfairvalueandrelevanttransaction
costshallberecordedintotheinitialrecognizedamount.Exceptfordividends(excludingthosebelongingtorecoveryofinvestmentcost)whichshallberecordedintothecurrentprofitorloss,otherrelevantgainsandlosses(includingexchangegainsandlosses)shallberecordedintoothercomprehensiveincomeandcannotbetransferredintothecurrentprofitorlosssubsequently.Whenderecognized,theaccumulatedgainsorlossesoriginallyrecordedintoothercomprehensiveincomeshallbetransferredoutintoretainedearnings.Equityinstrumentinvestmentsmeasuredatfairvaluethroughothercomprehensiveincomeincluded:EquityinvestmentstobeheldinthelongtermasplannedbytheCompanyforstrategicpurpose,withnocontrol,jointcontrolorsignificanceinfluence,andwithnoactivemarketquotation.TheCompanyclassifiesfinancialassetsnotbelongingtoabovetwoasfinancialassetsatfairvaluethroughprofitorlosswhichshallbeinitiallymeasuredatfairvalueandrelevanttransactioncostshallbedirectlyrecordedintothecurrentprofitorloss.Gainsorlossesarisingfromthesefinancialassetsshallberecordedintothecurrentprofitorloss.ThecontingentconsiderationrecognizedbytheCompanyinthebusinesscombinationnotunderthesamecontrolwhichconstitutesafinancialassetshallbeclassifiedasthefinancialassetatfairvaluethroughprofitorloss.
2)RecognitionandmeasurementoffinancialassetstransferTheCompanyderecognizesafinancialassetwhenoneofthefollowingconditionsismet:
1)therightstoreceivecashflowsfromtheassethaveexpired;2)theenterprisehastransferreditsrightstoreceivecashflowsfromtheassettoathirdpartyunderapass-througharrangement;or3)theenterprisehastransferreditsrightstoreceivecashflowsfromtheassetandeither(a)hastransferredsubstantiallyalltherisksandrewardsoftheasset,or(b)hasneithertransferrednorretainedsubstantiallyalltherisksandrewardsoftheasset,buthastransferredcontroloftheasset.
Iftheoveralltransferoffinancialassetsfulfillstherequirementsforderecognition,thedifferencebetweenthebookvalueofthetransferredfinancialassetsandthesumoftheconsiderationreceivedduetothetransferandthecorrespondingderecognitionpartoftheaccumulatedamountoffairvaluechangesoriginallydirectlyincludedinothercomprehensiveincome(thecontracttermsinvolvingthetransferredfinancialassetsstipulatethatthecashflowgeneratedonaspecificdateisonlythepaymentoftheprincipalandinterestbasedontheunpaidprincipalamount)shallbeincludedinthecurrentprofitsandlosses.
Ifthepartialtransferoffinancialassetssatisfiestheconditionsforterminationconfirmation,theentirebookvalueofthetransferredfinancialassetswillbeapportionedbetweentheterminationconfirmationportionandthenon-terminationconfirmationportionaccordingtotheirrelativefairvalues,andtheconsiderationreceivedforthetransferAndtheamountcorrespondingtotheterminationoftherecognitionofthecumulativeamountofchangesinfairvalueoriginallyincludedinothercomprehensiveincomethatshouldbeapportionedtothederecognitionpartAndthepaymentofinterestbasedontheoutstandingprincipalamount),andthedifferencebetweenthetotalbookvalueoftheaforesaidfinancialassetsallocatedisincludedinthecurrentprofitandloss.
(2)Financialliabilities
1)Classification,recognitionandmeasurementoffinancialliabilitiesTheCompany’sfinancialliabilitiesare,oninitialrecognition,classifiedintofinancialliabilitiesatfairvaluethroughprofitorlossandotherfinancialliabilities.Financialliabilitiesatfairvaluethroughprofitorlossincludeheld-for-tradingfinancialliabilitiesandfinancialliabilitiesdesignatedattheinitialrecognitiontobemeasuredbythefairvalueandtheirchangesarerecordedinthecurrentprofitorloss.Thesubsequentmeasurementshallbeatfairvalueandgainsorlossesarisingfromchangesinfairvalueandthedividendsandinterestexpenserelatedtothefinancialliabilityshallbethecurrentprofitorloss.Otherfinancialliabilitiesshallbesubsequentlymeasuredatamortizedcostwithactualinterest
rate.TheCompanyclassifiesfinancialliabilitiesexceptforthefollowingitemsasfinancialliabilitiesatamortizedcost:
①Financialliabilitiesatfairvaluethroughprofitorlossincludingheld-for-tradingfinancialliabilities(includingthederivativeinstrumentsbelongingtofinancialliabilities)anddesignatedfinancialliabilitiesatfairvaluethroughprofitorloss.②Financialliabilitiesarisingfromthetransferoffinancialassetsnotmeetingthederecognitionconditionsorcontinuousinvolvementinthetransferredfinancialassets.③Financialguaranteecontractnotbelongingtocasesofabove①or②andloancommitmentsatinterestratelowerthanthemarketratenotbelongingtothecasein①.TheCompanytreatsthefinancialliabilityarisingfromcontingentconsiderationrecognizedasthepurchasepartyinthebusinesscombinationnotunderthesamecontrolatfairvalueandchangesthereofshallberecordedintothecurrentprofitorloss.
2)DerecognitionoffinancialliabilitiesIncaseofcurrentobligationoffinancialliabilities(orpartialfinancialliabilities)beingterminated,derecognitionofsuchfinancialliabilities(orpartialfinancialliabilities)isconductedbytheCompany.IftheCompany(borrower)concludesanagreementwiththelendertoreplaceexistingfinancialliabilitieswithnewonesandcontacttermsofnewfinancialliabilitiesaredifferentfromthoseofexistingfinancialliabilities,derecognitionofexistingfinancialliabilitiesandrecognitionofnewfinancialliabilitiesshallbeconducted.Incaseofmaterialalterationofcontracttermsofexistingfinancialliabilities(partialfinancialliabilities)bytheCompany,derecognitionofexistingfinancialliabilitiesandrecognitionofnewfinancialliabilitiesaspermodifiedtermsshallbeconducted.Incaseofderecognitionoffinancialliabilities(partialfinancialliabilities),theCompanyincludesthebalancebetweenitscarryingvalueandpaymentconsiderationintothecurrentprofitorloss.
(3)Determinationoffinancialassetsandliabilities’fairvalueTheCompanymeasuredthefairvalueoffinancialassetsandfinancialliabilitiesaccordingtothepriceatmajormarket.Ifmajormarketdoesnotexist,thefairvalueoffinancialassetsandfinancialliabilitieswasmeasuredaccordingtothepriceatthemostadvantageousmarketthroughapplyingvaluationtechniqueapplicableatthetimeandwithsufficientusabledataandotherinformationsupport.Theinputsforfairvaluemeasurementwereclassifiedintothreelevels.Level1istheunadjustedquotationofthesameassetsorliabilitiesonactivemarketavailableonthemeasurementdate.Level2istheinputofrelevantassetsorliabilitiesotherthanthatinlevel1thatareobservableeitherdirectlyorindirectly.Level3istheunobservableinputofrelevantassetsorliabilities.TheCompanypreferredlevel1input,andappliedlevel3inputatlast.Level1inputwasapplicableforlistedstockandbondheldbytheCompany,level2inputforfinancingofaccountsreceivable(mainlybankacceptancebillandtradeacceptancebillmeetingderecognitionrequirementsaftertransfer),andlevel3inputforothernon-currentfinancialassets(unlistedequityinvestmentheldbytheCompany)andheld-for-tradingfinancialassets(mainlyfinancialproductsheldbytheCompany).Thelevelattributedtothefairvaluemeasurementresultwasdeterminedaccordingtothelowestleveloftheinputwithmuchsignificancetofairvaluemeasurementingeneral.TheCompanymeasuredtheinvestmentofequityinstrumentsatfairvalue.However,underlimitedsituation,iftherecentinformationfordeterminingthefairvaluewasinsufficient,orthepotentialestimatedamountoffairvaluewasinwiderange,andthecostrepresentedtheoptimal
estimationoffairvalueinsuchrange,suchcostcouldrepresentappropriateestimationoffairvalueinsuchrange.Suchequityinstrumentinvestmentsincluded:EquityinvestmentsheldbytheCompanymeasuredatfairvaluewithchangesincludedinthecurrentprofitsandlosseswithnocontrol,jointcontrolorsignificanceinfluence;non-tradingequityinstrumentinvestmentsweredesignatedasfinancialassetsmeasuredatfairvaluethroughothercomprehensiveincome.
(4)OffsettingfinancialassetsandfinancialliabilitiesTheCompany’sfinancialassetsandliabilitiesshallbeseparatelypresentedinthebalancesheetandnotsetoffeachother.Butwhenmeetingthefollowingconditionsatthesametime,thenetamountafteroffsetshallbepresentedinthebalancesheet:(1)TheCompanyhasthestatutoryrighttosetoffrecognizedamountwhichiscurrentlyexecutable;(2)TheCompanyplanstosettlewiththenetamountorrealizethefinancialassetandpayoffthefinancialliabilitysimultaneously.
(5)ThedistinctionbetweenfinancialliabilitiesandequityinstrumentsandrelatedtreatmentmethodsTheCompanydistinguishesthefinancialliabilitiesandequityinstrumentsaccordingtothefollowingprinciples:(1)IftheCompanycannotunconditionallyavoidperformingacontractualobligationbydeliveringcashorotherfinancialassets,thecontractualobligationmeetsthedefinitionoffinancialliabilities.Althoughsomefinancialinstrumentsdonotexplicitlyincludethetermsandconditionsoftheobligationtodelivercashorotherfinancialassets,theymayindirectlyformcontractualobligationsthroughothertermsandconditions.(2)IfafinancialinstrumentmustbesettledwithorcanbesettledwiththeCompany'sownequityinstrument,itisnecessarytoconsiderwhethertheCompany'sownequityinstrumentusedtosettletheinstrumentisusedasasubstituteforcashorotherfinancialassets,ortoenabletheholderoftheinstrumenttoenjoytheresidualequityintheassetsoftheissuerafterdeductingallliabilities.Ifitbelongstotheformercondition,theinstrumentisthefinancialliabilityoftheissuer;ifitbelongstothelattercondition,theinstrumentistheequityinstrumentoftheissuer.Insomecases,afinancialinstrumentcontractrequirestheCompanytouseoruseitsownequityinstrumenttosettlethefinancialinstrument,inwhichtheamountofcontractualrightsorcontractualobligationsisequaltothenumberofitsownequityinstrumentsavailableortobedeliveredmultipliedbyitsfairvalueatthetimeofsettlement,regardlessofwhethertheamountofcontractualrightsorobligationsisfixed,whetheritisentirelyorpartiallybasedonchangesinvariablesotherthanthemarketpriceoftheCompany'sownequityinstruments,thecontractshallbeclassifiedasafinancialliability.Inclassifyingfinancialinstruments(ortheircomponents)intheconsolidatedstatement,theCompanyhastakenintoaccountalltermsandconditionsreachedbetweentheCompanymembersandtheholdersoffinancialinstruments.IftheCompanyasawholeundertakestheobligationtodelivercash,otherfinancialassetsorsettleaccountsinotherwaysthatcausetheinstrumenttobecomeafinancialliabilityduetotheinstrument,theinstrumentshallbeclassifiedasafinancialliability.Iffinancialinstrumentsortheircomponentsarefinancialliabilities,theCompanywillincludeinterest,dividends(ordividends),gainsorlosses,andgainsorlossesarisingfromredemptionorrefinancing,etc.inthecurrentprofitsandlosses.Iffinancialinstrumentsortheircomponentsareequityinstruments,whentheyareissued(includingrefinancing),repurchased,soldorcancelled,theCompanywilltreatthemaschangesinequityandwillnotrecognizechangesinthefairvalueofequityinstruments.
11.ImpairmentofFinancialAssetsTheCompanyneedstoconfirmthatthefinancialassetssubjecttotheimpairmentlossarethefinancialassetsmeasuredbasedontheamortizedcost,thedebtinstrumentinvestmentmeasuredbasedonthefairvaluewithitsvariationsincludedintoothercomprehensiveincomesandtheleaseoutlayreceivable,mainlyincludingnotesreceivable,accountreceivable,otherreceivables,
investmentoncreditor’srights,otherinvestmentsoncreditor’srightsandlong-termreceivablesetc.Besides,inrespectofthecontractassetsandpartialfinancialguaranteecontract,correspondingimpairmentprovisionsshallbecalculatedandwithdrawnandcorrespondingcreditimpairmentlossesrecognizedaccordingtovariousaccountingpoliciesmentionedinthispart.
(1)MethodsfortheRecognitionofImpairmentProvisionsForallmentioneditemsabove,theCompanyshallcalculateandwithdrawcorrespondingimpairmentprovisionsandrecognizecorrespondingcreditimpairmentlossesaccordingtoapplicableexpectedcreditlossmeasurementmethods(generalmethodsorsimplifiedmethods)withtheexpectedcreditlossasthebasis.Creditlossreferstothedifferencebetweenallreceivablecontractcashflowsandallexpectedcashflowsthatarediscountedtothepresentvaluebasedontheoriginalactualinterestrate--thepresentvalueofallcashshortfall.However,forthepurchasedororiginalfinancialassetssubjecttothecreditimpairment,theCompanyshallrealizethediscountingbasedontheactualinterestratesubjecttothecreditadjustment.Generalmethodsappliedtomeasuretheexpectedcreditlosscanbedescribedas:theCompanyshallevaluatewhetherthecreditriskofthefinancialassets(includingthecontractassetsandotherapplicableitems;thesamebelow)increasesremarkablyaftertheinitialrecognitiononthebalancesheetday;ifthecreditriskincreasesremarkablyaftertheinitialrecognition,theCompanyshallmeasuretheprovisionforlossbasedonthespecificexpectedcreditlossamountduringtheentireperiodofexistence;ifnot,theCompanyshallmeasuretheprovisionforlossbasedonthespecificexpectedcreditlossamountinthefollowing12months.Whileevaluatingtheexpectedcreditloss,theCompanyshalltakeallreasonableandwell-foundedinformationintoconsideration,includingtheforward-lookinginformation.Forthefinancialinstrumentoflowercreditriskonthebalancesheetday,theCompanyshallassumethatitscreditriskdoesnotincreaseremarkablyaftertheinitialrecognition,andcorrespondingprovisionforlossshallbemeasuredaccordingtotheexpectedcreditlossinthefollowing12months.
(2)StandardsforJudgingWhethertheCreditRiskIncreasesRemarkablyaftertheInitialRecognitionIfanyfinancialassets’probabilityofdefaultwithintheexpectedperiodofexistencedeterminedonthebalancesheetdayisobviouslyhigherthanthatwithintheexpectedperiodofexistencedeterminedduringtheinitialrecognition,itshallindicatetheremarkableincreaseofthefinancialassets’creditrisk.Unlessitisunderspecialcircumstances,theCompanyshalladoptvariousvariationsinthedefaultriskinthefollowing12monthsasthereasonablebasisforestimatingcorrespondingvariationsinthedefaultriskwithintheentireperiodofexistenceanddeterminingwhetherthecreditriskincreasesremarkablyaftertheinitialrecognition.
(3)CombinedMethodforEvaluatingtheExpectedCreditRiskbasedonCorrespondingCombinationForthefinancialassetswithremarkablydifferentcreditrisk,theCompanyshallseparatelyevaluateitscreditrisk,includingthereceivablesfromrelatedparties,receivablesinvolvedinanydisputewiththeotherpartyoranylawsuitandarbitration,andreceivableswithobviousevidenceshowingthatthedebtorcannotfulfilltheduepaymentobligationetc.Exceptforthefinancialassetswhosecreditriskshallbeseparatelyevaluated,theCompanyshalldividethesefinancialassetsintodifferentcombinationsbasedonthespecificriskfeatures,onwhichbasis,correspondingcreditriskscanbeevaluated.
(4)AccountingTreatmentMethodsAppliedtotheImpairmentofFinancialAssets
Attheendoftheperiod,theCompanyshallcalculatetheexpectedcreditlossesofvariousfinancialassets.Iftheexpectedcreditlossishigherthanthecarryingamountofitscurrentimpairmentprovision,thedifferenceshallberecognizedastheimpairmentloss;iflower,thedifferenceshallberecognizedasthegainfromtheimpairment.
12.NotesReceivableFornotesreceivable,theCompanyshallmeasuretheprovisionforlossbasedonthespecificexpectedcreditlossduringtheentireperiodofexistence.Accordingtothecreditriskcharacteristicsthereof,exceptthosewithseparateevaluationofcreditrisk,notesreceivablecanbedividedintodifferentcombinations:
| Item | Basis |
| BankAcceptance | TheAcceptershallbethebankwithhighcreditlevelandlowrisks |
| TradeAcceptance | Classifiedbycreditriskofacceptors(thesameasaccountsreceivable) |
13.AccountsReceivableForaccountreceivableandcontractassetsexcludingsignificantfinancingcomposition,theCompanyshallmeasuretheprovisionforlossaccordingtothespecificexpectedcreditlossamountwithintheentireperiodofexistence.Foraccountreceivable,contractassetsandleasepaymentreceivableincludingsignificantfinancingcomposition,theCompanyshallalwaysmeasuretheprovisionforlossaccordingtothespecificexpectedcreditlossamountwithintheperiodofexistence.Excepttheaccountreceivableandcontractassetswhosecreditrisksshallbeseparatelyevaluated,theCompanyshalldividethemintodifferentcombinationsbasedonthespecificcreditrisks:
| Item | Basis |
| AgingCombination | Thisportfolioisaccountsreceivablewithagingasthecreditriskfeature. |
| ProjectFundsCombination | Thisportfolioistheproject-relatedreceivables. |
| Relatedpartycombination | Theaccountsreceivablewithinthescopeofconsolidation |
14.AccountsReceivableFinancingTheCompany’saccountsreceivablefinancingisbasedonexpectedcreditlosses,andprovisionismadefordepreciationreservesinaccordancewiththeexpectedcreditlossmeasurementmethodfornotesreceivable.
15.OtherReceivablesTheCompanymeasuresthelossreservesonotherreceivablesinaccordancewiththefollowingcircumstances:a)Forfinancialassetswhosecreditriskhasnotsignificantlyincreasedsincetheinitialrecognition,theCompanymeasuresthelossreservesattheamountofexpectedcreditlossesforthenext12months;b)Forfinancialassetswhosecreditriskhasincreasedsignificantlysincetheinitialrecognition,theCompanymeasuresthelossreservesatanamountequaltothe
expectedcreditlossesfortheentireperiodofthefinancialinstrument;c)Forfinancialassetspurchasedororiginatedfromcreditimpairment,theCompanymeasuresthelossreservesatanamountequaltotheexpectedcreditlossesovertheentireperiodofthefinancialinstrument.Exceptotherreceivableswhosecreditrisksshallbeseparatelyevaluated,theCompanyshalldividethemintodifferentcombinationsbasedonthespecificcreditriskfeatures:
| Item | Basis |
| AgingCombination | Thisportfolioisaccountsreceivablewithagingasthecreditriskfeature. |
| LowRiskCombination | Thiscombinationshallregardotherreceivablesofextremelylowrisk(includingtherevolvingfund,thecashdepositandtheguaranteedeposit)asthecreditriskfeature. |
| Relatedpartycombination | Otherreceivableswithinthescopeofconsolidation. |
16.Long-termReceivablesBydeterminingwhetherthecreditriskoflong-termaccountreceivablesincreasesremarkablyaftertheinitialrecognition,theCompanyshallmeasuretheimpairmentlossbasedonthespecificexpectedcreditlossinthefollowing12monthsorduringtheentireperiodofexistence.Exceptlong-termaccountreceivableswhosecreditrisksshallbeseparatelyevaluated,theCompanyshalldividethemintodifferentcombinationsbasedonthespecificcreditriskfeatures:
| Item | Basis |
| FinancingLeaseCombination | Regardingthelong-termreceivablesrelatedtothefinancingleaseasthecreditriskcharacteristics |
| FranchiseCombination | Regardingthelong-termreceivablesrelatedtothePPPProjectasthecreditriskcharacteristics |
17.InventoriesTheCompany'sinventoriesmainlyincluderawmaterials,productsinprocess,semi-finishedproducts,andentrustedprocessingmaterials.Theperpetualinventorymethodisusedforinventories.Inventoriesarepricedattheactualcostatthetimeofacquisition;theactualcostofinventoriesisdeterminedbytheweightedaveragemethodwheninventoriesareclaimedorissued.Low-valueconsumablesandpackagingareamortizedthroughtheone-offcharge-offmethod.Thenetrealizablevalueofinventoriesofgoodsthatareuseddirectlyforsale,suchasinventorygoods,productsinprocess,andmaterialsforsale,isdeterminedbytheestimatedsellingpriceoftheinventoryminusestimatedsaleexpenses,andrelatedtaxes;thenetrealizablevalueofinventoriesofmaterialsheldforproductionisdeterminedbytheestimatedsellingpriceofthefinishedgoodsproducedminustheestimatedcostsofcompletion,estimatedsaleexpenses,andrelatedtaxes.Theinventorieswithvariousnumbersandlowunitpriceshallbemadeprovisionsfordepreciationreservesofinventoriesaccordingtothecategoryofinventories.Forinventoriesthatareproducedandsoldinthesameregionwithsameorsimilarenduseorpurposes,andhard
tobemeasuredseparatelyfromotheritems,itshallbemademergerprovisionsforfallingpriceofinventories.Thenetrealizablevaluerefers,intheordinarycourseofbusiness,totheaccountafterdeductingtheestimatedcostofcompletion,estimatedsaleexpenseandrelevanttaxesfromtheestimatedsalepriceofinventories.Thenetrealizablevalueofinventoriesshallbefixedonthebasisofvalidevidenceaswellasunderconsiderationofpurposeofinventoriesandtheeffectofeventsafterbalance-sheet-date.Afterwithdrawingthedepreciationreservesforinventories,ifthefactors,whichcauseanywrite-downoftheinventories,havedisappeared,causingthenetrealizablevalueofinventoriesishigherthanitscarryingamount;theamountofwrite-downshallbereversedfromtheoriginalamountofdepreciationreserveforinventories.Thereversedamountshallbeincludedintheprofitsandlossesofthecurrentperiod.
18.ContractAssets
(1)ConfirmationmethodsandstandardsofcontractassetsContractassetsrefertotherightofthecompanytoreceiveconsiderationaftertransferringgoodstocustomers,andthisrightdependsonfactorsotherthanthepassageoftime.Ifthecompanysellstwoclearlydistinguishableproductstocustomers,ithastherighttoreceivepaymentbecauseoneoftheproductshasbeendelivered,butthepaymentisalsodependentonthedeliveryoftheotherproduct,thecompanyhastherighttoreceivepaymentasacontractassets.
(2)DeterminationmethodandaccountingtreatmentmethodofexpectedcreditlossofcontractassetsThemethodofdeterminingtheexpectedcreditlossofcontractassets,refertothedescriptionof
11.FinancialAssetImpairment,12.NotesReceivable,13.AccountsReceivable.Thecompanycalculatestheexpectedcreditlossofcontractassetsonthebalancesheetdate.Iftheexpectedcreditlossisgreaterthanthebookvalueofthecurrentcontractassetimpairmentprovision,thecompanywillrecognizethedifferenceasanimpairmentlossanddebitthe"assetimpairmentloss".Credited"Contractassetimpairmentprovision".Onthecontrary,thecompanyrecognizesthedifferenceasanimpairmentgainandkeepstheoppositeaccountingrecords.Ifthecompanyactuallyincurscreditlossesanddeterminesthattherelevantcontractassetscannotberecovered,andthewritten-offisapproved,the"contractassetimpairmentreserve"isdebitedandthe"contractedasset"iscreditedbasedontheapprovedwrite-offamount.Ifthewritten-offamountisgreaterthantheprovisionforlossthathasbeenwithdrawn,the"assetimpairmentloss"isdebitedbasedonthedifference.
19.ContractCosts
(1)ThemethodofdeterminingtheamountofassetsrelatedtocontractcostsThecompany’sassetsrelatedtocontractcostsincludecontractperformancecostsandcontractacquisitioncosts.Thecontractperformancecost,thatis,thecostincurredbythecompanyfortheperformanceofthecontract,doesnotfallwithinthescopeofotheraccountingstandardsandmeetsthefollowingconditionsatthesametime,asthecontractperformancecostisrecognizedasanasset:thecostandacurrentorexpectedcontractDirectlyrelated,includingdirectlabor,directmaterials,manufacturingexpenses(orsimilarexpenses),clearlythecostbornebythecustomer,andothercostsincurredonlyduetothecontract;thiscostincreasesthecompany'sfutureresourcesforfulfillingitsperformanceobligations;Thiscostisexpectedtoberecovered.Thecontractacquisitioncost,thatis,theincrementalcostincurredbythecompanytoobtainthecontractisexpectedtoberecovered,andisrecognizedasanassetasthecontractacquisitioncost;
iftheassetamortizationperioddoesnotexceedoneyear,itisincludedinthecurrentprofitandlosswhenitoccurs.Incrementalcostreferstothecost(suchassalescommission,etc.)thatthecompanywillnotincurwithoutobtainingthecontract.Thecompany'sexpensesincurredinobtainingthecontract,otherthantheexpectedincrementalcostthatcanberecovered(suchastravelexpensesincurredregardlessofwhetherthecontractisobtained,etc.),areincludedinthecurrentprofitandlosswhentheyareincurred,butitisclearlybornebythecustomerexcept.
(2)AmortizationofassetsrelatedtocontractcostsThecompany’sassetsrelatedtocontractcostsareamortizedonthesamebasisasthecommodityrevenuerecognitionrelatedtotheassetandincludedinthecurrentprofitandloss.
(3)ImpairmentofassetsrelatedtocontractcostsWhenthecompanydeterminestheimpairmentlossofassetsrelatedtocontractcosts,itfirstdeterminestheimpairmentlossofotherassetsrelatedtothecontractthatareconfirmedinaccordancewithotherrelevantbusinessaccountingstandards;then,basedontheirbookvaluehigherthanthecompany’stransferandIfthedifferencebetweentheremainingconsiderationthattheasset-relatedcommodityisexpectedtoobtainandtheestimatedcostincurredforthetransferoftherelevantcommodity,theexcessshallbeprovidedforimpairmentandrecognizedasanassetimpairmentloss.Ifthedepreciationfactorsofthepreviousperiodhavechanged,andtheaforementioneddifferenceishigherthanthebookvalueoftheasset,theoriginalprovisionforassetimpairmentshallbereversedandincludedinthecurrentprofitandloss,butthebookvalueoftheassetafterthereversalshallnotexceedAssumingnoprovisionforimpairmentismade,thebookvalueoftheassetonthedateofreversal.
20.Long-termEquityInvestmentsTheCompany'slong-termequityinvestmentsmainlyconsistofinvestmentsinsubsidiaries,associatedenterprises,andjointventures.TheCompany’sjudgmentonjointcontrolisbasedonthefactthatallparticipantsoracombinationofparticipantscollectivelycontrolthearrangementandthatthepoliciesoftheactivitiesrelatedtothearrangementshallbeunanimouslyagreedbythoseparticipantswhoTheCompanyisgenerallyconsideredtohaveasignificantinfluenceontheinvesteewhenitowns,directlyorindirectlythroughasubsidiary,above20%butbelow50%ofthevotingrightsoftheinvestee.IftheCompanyholdslessthan20%ofthevotingrightsoftheinvestee,italsoneedstojudgewhethertheCompanyhasasignificantinfluenceontheinvesteebytakingintoaccountthefactsandcircumstancessuchashavingrepresentativesontheboardofdirectorsorsimilarauthorityoftheinvestee,orparticipatingintheprocessofformulatingfinancialandoperatingpoliciesoftheinvestee,orhavingmajortransactionswiththeinvestee,orsendingmanagementpersonneltotheinvestee,orprovidingkeytechnicalinformationtotheinvestee.Ifcontrolovertheinvesteeisformed,itisasubsidiaryoftheCompany.Forlong-termequityinvestmentacquiredthroughbusinesscombinationunderthesamecontrol,theinitialinvestmentcostofthelong-termequityinvestmentsisrecordedatthemergerdatebasedontheacquisitionofthemergedparty'sshareofthebookvalueofthenetassetsoftheultimatecontrollerintheconsolidatedfinancialstatement.Ifthebookvalueofthenetassetsofthemergedpartyonthemergerdateisnegative,thecostoflong-termequityinvestmentsisdeterminedaszero.Iftheequityoftheinvesteeunderthesamecontrolisacquiredinstagesthroughmultipletransactionstoeventuallyresultinabusinesscombination,additionaldisclosuresofthetreatmentoflong-termequityinvestmentsintheparentcompany'sfinancialstatementsshallbemadeinthe
ReportingPeriodinwhichcontrolisobtained.Forexample,ifthebusinesscombinationthatisultimatelyformedthroughmultipletransactionstoacquiretheequityoftheinvesteeunderthesamecontrolbelongstoapackagedeal,theCompanyshallconductaccountingtreatmenttotreateachtransactionasasingletransactiontoacquirecontrol.Ifthetransactionisnotapackagedeal,theinitialinvestmentcostofthelong-termequityinvestmentisbasedontheshareofthebookvalueofthenetassetsofthemergedpartyintheconsolidatedfinancialstatementsoftheultimatecontrolleratthemergerdate.Thedifferencebetweentheinitialinvestmentcostandthesumofthebookvalueofthelong-termequityinvestmentbeforethemergerplusthebookvalueofthenewconsiderationpaidforfurtheracquisitionofsharesatthemergerdateshalloffsetagainstcapitalreserve;andwherecapitalreserveisinsufficienttobeoffset,theretainedearningsshallbeadjusted.Forlong-termequityinvestmentacquiredthroughbusinesscombinationnotunderthesamecontrol,theinitialinvestmentcostshallbetheconsolidationcost.Iftheequityoftheinvesteenotunderthesamecontrolisacquiredinstagesthroughmultipletransactionstoeventuallyresultinabusinesscombination,additionaldisclosuresofthecosttreatmentoflong-termequityinvestmentsintheparentcompany'sfinancialstatementsshallbemadeintheReportingPeriodinwhichcontrolisobtained.Forexample,ifthebusinesscombinationthatisultimatelyformedthroughmultipletransactionstoacquiretheequityoftheinvesteenotunderthesamecontrolbelongstoapackagedeal,theCompanyshallconductaccountingtreatmenttotreateachtransactionasasingletransactiontoacquirecontrol.Ifthetransactionisnotapackagedeal,thesumofthebookvalueoftheequityinvestmentoriginallyheldplusthecostofthenewinvestmentshallbetheinitialinvestmentcostcalculatedinaccordancewiththecostmethod.Iftheequityheldpriortothepurchasedateisaccountedbytheequitymethod,therelevantothercomprehensiveincomeaccountedbytheoriginalequitymethodshallnotbeadjusted.Thesamebasisofaccountingasthatusedforthedirectdisposaloftherelatedassetsorliabilitiesbytheinvesteeisusedforthedisposaloftheinvestment.Iftheequityheldpriortothepurchasedateisafinancialassetdesignatedtobemeasuredatfairvaluewithfluctuationsincludedinothercomprehensiveincome,thecumulativeprofitorlossontheequitypreviouslyrecognizedinothercomprehensiveincomeshallbetransferredfromothercomprehensiveincometotheretainedearnings;iftheequityisafinancialassetmeasuredatfairvalueandthechangesofwhichareincludedinprofitsandlossesofthecurrentperiod,theequitypreviouslyrecognizedasprofitsandlossesfromthechangesinfairvalueshallnotbetransferredtoinvestmentincome.Iftheequityheldpriortothepurchasedateisaninvestmentforotherequityinstruments,thechangesinfairvalueoftheequityinvestmentaccumulatedinothercomprehensiveincomebeforethepurchasedateshallbetransferredtotheretainedearnings.Exceptforthelong-termequityinvestmentsacquiredthroughbusinesscombinationhereinabove,long-termequityinvestmentsacquiredbypayingcasharerecordedasinvestmentcostbasedontheactualpurchasepricepaid;long-termequityinvestmentsacquiredbyissuingequitysecuritiesarerecordedasinvestmentcostbasedonthefairvalueoftheequitysecuritiesissued;long-termequityinvestmentsinvestedbyinvestorsarerecordedasinvestmentcostbasedonthevalueagreedintheinvestmentcontractoragreement.TheCompanycalculatesitsinvestmentsinsubsidiariesthroughthecostmethodanditsinvestmentsinjointventuresandassociateenterprisesthroughtheequitymethod.Forlong-termequityinvestmentscalculatedbythecostmethodforsubsequentmeasurement,thebookvalueofthecostoflong-termequityinvestmentsshallbeincreasedbythefairvalueofthecostamountpaidfortheadditionalinvestmentandrelevanttransactioncostsincurredwhenthe
additionalinvestmentismade.Cashdividendsorprofitsdeclaredbytheinvesteearerecognizedasinvestmentincomeforthecurrentperiodinaccordancewiththedueamount.Inadditiontotheabove-mentionedlong-termequityinvestmentobtainedthroughbusinesscombination,thelong-termequityinvestmentobtainedbypayingcashshallberegardedastheinvestmentcostaccordingtothepurchasepriceactuallypaid;thelong-termequityinvestmentobtainedbyissuingequitysecuritiesshallberegardedastheinvestmentcostaccordingtothefairvalueofissuingequitysecurities;thelong-termequityinvestmentinvestedbyinvestorsshallberegardedastheinvestmentcostaccordingtotheinvestmentcontractoragreementThevalueofthecompanyisregardedasthecostofinvestment.Thecompanyadoptsthecostmethodforinvestmentinsubsidiariesandtheequitymethodforinvestmentinjointventuresandassociatedenterprises.Forthelong-termequityinvestmentwhosesubsequentmeasurementadoptsthecostmethod,whentheadditionalinvestmentismade,thebookvalueofthelong-termequityinvestmentcostisincreasedaccordingtothefairvalueofthecostamountpaidbytheadditionalinvestmentandtherelevanttransactionexpenses.Thecashdividendsorprofitsdeclaredtobedistributedbytheinvesteeshallberecognizedasthecurrentinvestmentincomeaccordingtotheamountthatshouldbeenjoyed.Forthelong-termequityinvestmentwithequitymethodforsubsequentmeasurement,thebookvalueofthelong-termequityinvestmentwillincreaseordecreasewiththechangeoftheowner'sequityoftheinvestedentity.Whenconfirmingtheshareofthenetprofitandlossoftheinvestee,thenetprofitandlossoftheinvesteeshallbecalculatedbasedonthefairvalueoftheidentifiableassetsoftheinvesteeatthetimeofobtainingtheinvestment,inaccordancewiththeaccountingpoliciesandaccountingperiodofthecompany,andoffsettheinternaltransactionprofitandlossbetweenthejointventureandthejointventureaccordingtotheshareholdingratioProfitisrecognizedafteradjustment.Fordisposaloflong-termequityinvestment,thedifferencebetweenthebookvalueandtheactualpriceshallbeincludedinthecurrentinvestmentincome.Forlong-termequityinvestmentaccountedbyequitymethod,othercomprehensiveincomeaccountedbytheoriginalequitymethodshallbeaccountedonthesamebasisastheinvestee'sdirectdisposalofrelevantassetsorliabilitieswhentheequitymethodisterminated,andtheowner'sequityshallberecognizedduetootherchangesinowner'sequityoftheinvesteeexceptnetprofitandloss,othercomprehensiveincomeandprofitdistributionWhentheequitymethodisterminated,allofthemshallbetransferredintothecurrentinvestmentincome.Incaseoflossofjointcontrolorsignificantinfluenceontheinvesteeduetothedisposalofpartofequityinvestment,theremainingequityafterdisposalshallbeaccountedaccordingtotherelevantprovisionsoftherecognitionandmeasurementstandardsoffinancialinstruments,andthedifferencebetweenthefairvalueandthebookvalueoftheremainingequityonthedateoflossofjointcontrolorsignificantinfluenceshallbeincludedinthecurrentprofitsandlosses.Whentheequitymethodisterminated,theothercomprehensiveincomeoftheoriginalequityinvestmentrecognizedasaresultofitsaccountingwiththeequitymethodshallbehandledonthesamebasisastheinvestee'sdirectdisposaloftherelevantassetsorliabilitiesandcarriedforwardinproportion.Theowner'sequityrecognizedasaresultofthechangesintheowner'sequityoftheinvesteeotherthannetprofitandloss,othercomprehensiveincomeandprofitdistributionshallbecarriedforwardinproportionTransfertocurrentinvestmentincome.Ifthecontrolovertheinvesteeislostduetothedisposalofpartofthelong-termequityinvestment,andtheresidualequityafterdisposalcanjointlycontrolorexertsignificantinfluence
ontheinvestee,itshallbeaccountedaccordingtotheequitymethod,andthedifferencebetweenthebookvalueofthedisposalequityandthedisposalconsiderationshallbeincludedintheinvestmentincome,andtheresidualequityshallberegardedasadjustedbytheequitymethodwhenitisobtainedIftheresidualequitycannotexercisejointcontrolorexertsignificantinfluenceontheinvestee,theaccountingtreatmentshallbecarriedoutaccordingtotherelevantprovisionsoftherecognitionandmeasurementstandardsoffinancialinstruments.Thedifferencebetweenthebookvalueofthedisposalequityandthedisposalconsiderationshallbeincludedintheinvestmentincome,andthedifferencebetweenthefairvalueandthebookvalueoftheresidualequityonthedayoflosingcontrolshallbeincludedinthecurrentprofitsandlosses.Ifthetransactionfromstep-by-stepdisposalofequitytolossofcontrolrightdoesnotbelongtopackagetransaction,accountingtreatmentshallbecarriedoutforeachtransactionseparately.Ifitisa"packagedeal",eachtransactionwillbetreatedasatransactionofdisposalofsubsidiariesandlossofcontrol.However,beforethelossofcontrol,thedifferencebetweenthedisposalpriceofeachtransactionandthebookvalueofthelong-termequityinvestmentcorrespondingtothedisposedequitywillberecognizedasothercomprehensiveincome,andwhenthecontrolislost,itwillbetransferredtothecurrentaccountoflossofcontrolPeriodprofitandloss
21.InvestmentPropertyTheterm“investmentproperty”referstotherealestateheldforgeneratingrentand/orcapitalappreciation.InvestmentpropertyoftheCompanyincludetherighttouseanylandwhichhasalreadybeenrented;therighttouseanylandwhichisheldandpreparedfortransferafterappreciation;andtherighttouseanybuildingwhichhasalreadybeenrented.Inaddition,iftheboardofdirectors(orsimilarorganizations)makesawrittenresolutiontousethevacantbuildingsheldbythecompanyforoperatingleaseandtheholdingintentionwillnotchangeinashorttime,theywillalsobelistedasinvestmentrealestate.Theinitialmeasurementoftheinvestmentpropertyshallbemadeatitscost.SubsequentexpendituresincurredforaninvestmentpropertyisincludedinthecostoftheinvestmentpropertywhenitisprobablethateconomicbenefitsassociatedwiththeinvestmentpropertywillflowtotheCompanyandthecostcanbereliablymeasured,otherwisetheexpenditureisrecognizedinprofitorlossintheperiodinwhichtheyareincurred.TheCompanyshallmakeafollow-upmeasurementtotheinvestmentpropertybyemployingthecostpatternonthedateofthebalancesheet.Anaccrualdepreciationoramortizationshallbemadefortheinvestmentpropertyinthelightoftheaccountingpoliciesoftheuserightofbuildingsorlands.Fordetailsofimpairmenttestmethodandwithdrawalmethodofimpairmentprovisionofinvestmentproperty,pleaserefertoNoteIV.26.“Long-termassetsimpairment”.Thecompany'sinvestmentrealestateadoptstheaveragelifemethodfordepreciationoramortization.Theexpectedservicelife,netresidualvaluerateandannualdepreciation(amortization)rateofallkindsofinvestmentrealestateshallrefertothedepreciationpolicyofbuildingsinfixedassetsandtheamortizationpolicyoflanduserightinintangibleassets..Whenowner-occupiedrealestateorinventoriesarechangedintoinvestmentpropertyorinvestmentpropertyischangedintoowner-occupiedrealestate,ofwhichbookvaluepriortothechangeshallbetheentryvalueafterthechange.Whenaninvestmentpropertyischangedtoanowner-occupiedrealestate,itwouldbetransferredtofixedassetsorintangibleassetsatthedateofsuchchange.Whenanowner-occupiedrealestateischangedtobeheldtoearnrentalorforcapitalappreciation,thefixedassetorintangibleassetis
transferredtoinvestmentpropertyatthedateofsuchchange.Ifthefixedassetorintangibleassetischangedintoinvestmentpropertymeasuredbyadoptingthecostpattern,whosebookvaluepriortothechangeshallbetheentryvalueafterthechange;ifthefixedassetorintangibleassetischangedintoinvestmentpropertymeasuredbyadoptingthefairvaluepattern,whosefairvalueonthedateofsuchchangeshallbetheentryvalueafterthechangeAninvestmentpropertyisderecognizedondisposalorwhentheinvestmentpropertyispermanentlywithdrawnfromuseandnofutureeconomicbenefitsareexpectedfromitsdisposal.Theamountofproceedsonsale,transfer,retirementordamageofaninvestmentpropertylessitscarryingamountandrelatedtaxesandexpensesisrecognizedinprofitorlossintheperiodinwhichitisincurred.
22.FixedAssetsTheCompany’sfixedassetsaretangibleassetsheldfortheproductionofgoods,provisionofservices,rentaloroperationmanagementandhaveausefullifeofmorethanoneyear.FixedassetsshouldberecognizedwhenitisprobablethattheeconomicbenefitsassociatedwiththemwillbeincorporatedintotheCompanyandtheircostcanbemeasuredreliably.TheCompany’sfixedassetsincludebuildingsandconstructions,machineryandequipment,electronicequipment,transportationequipment,andotherequipment.TheCompanydepreciatesallfixedassetsbystraight-linemethod,exceptforfullydepreciatedfixedassetsthatcontinuetobeusedandlandthatisseparatelyvalued.Thecategorizeddepreciablelives,estimatednetsalvageratesanddepreciationratesoftheCompany’sfixedassetsareasfollows.
| No. | Category | Method | Depreciationperiod(year) | Expectednetsalvagevalue(%) | Annualdeprecation(%) |
| 1 | Housingandbuilding | Straight-linedepreciation | 20-40 | 5-10.00 | 2.25-4.75 |
| 2 | Machineryequipment | Straight-linedepreciation | 5-10 | 5-10.00 | 9.00-19.00 |
| 3 | Electronicequipment | Straight-linedepreciation | 3-5 | 5-10.00 | 18.00-31.67 |
| 4 | Transportationvehicle | Straight-linedepreciation | 3-5 | 5-10.00 | 18.00-31.67 |
| 5 | Otherequipment | Straight-linedepreciation | 5 | 5-10.00 | 18.00-19.00 |
Theestimatedusefullife,estimatednetsalvagevalueanddepreciationmethodoffixedassetsarereviewedattheendofeachyear.Accountingestimationmethodsareusedwhenchangesarerequired.
TheCompany’sfixedassetsunderfinanceleasesaremainlymachineryandequipment.Thebasisforrecognizingthemasfixedassetsunderfinanceleasesisthat,duringtheleaseterm,theCompanyreceivessubstantiallyalltheeconomicbenefitsprovidedbytheassets,whileassumingtherisksassociatedwiththeassets.Thelowerofthefairvalueofthefixedassetsunderfinanceleasesandthepresentvalueoftheminimumleasepaymentswillberecognizedastherecordedvalueoftheleased-inassets.Thedifferencebetweentherecordedvalueoftheleased-inassetsandtheminimumleasepaymentsisrecognizedasanunrecognizedfinancingexpense.Fixedassetsunderfinanceleasesaredepreciatedinthesamemannerasownedfixedassets.Ifitisreasonablycertainthatownershipoftheleasedassetwillbeobtainedattheendoftheleaseterm,theleasedfixedassetisdepreciatedoveritsestimatedusefullife;otherwise,theleasedfixedassetisdepreciatedovertheshorteroftheleasetermandtheestimatedusefullifeoftheasset.
23.ConstructioninProgressOnthedatewhentheconstructioninprogressreachesitsintendeduseablestate,fixedassetsarecarriedforwardattheestimatedvaluebasedontheprojectbudget,costoractualcostoftheproject,etc.Depreciationstartsfromthefollowingmonth,andthedifferenceintheoriginalvalueoffixedassetsisadjustedafterthecompletionofthefinalaccountingprocedures.
24.BorrowingCostsForincurredborrowingcosts,whichcanbedirectlyattributedtofixedassets,investmentrealestateandinventorythatneedmorethanoneyearofpurchasing,constructionorproductionactivitiestoreachthepresetusableorsellablestatus,shallbecapitalizedwhentheassetexpenditurehasoccurred,theborrowingcostshaveoccurred,andthepurchasing,constructionorproductionactivitiesnecessaryfortheassettoreachthepresetusableorsellablestatushavebegun;Whentheacquisition,constructionorproductionofassetsthatmeetthecapitalizationconditionsreachtheintendedusableorsellablestatus,capitalizationisstopped,andtheborrowingcostsincurredthereafterareincludedintheprofitsandlossesofthecurrentperiod.Ifthereisanabnormalinterruptionintheacquisition,constructionorproductionofassetsthatmeetthecapitalizationconditionsandtheinterruptionlastsformorethan3consecutivemonths,thecapitalizationofborrowingcostswillbesuspendeduntiltheacquisition,constructionorproductionofassetsstartsagain.Theto-be-capitalizedamountofinterestsshallbedeterminedinlightoftheactualinterestsincurredofthespeciallyborrowedloanatthepresentperiodminustheincomeofinterestsearnedontheunusedborrowingloansasadepositinthebankorasatemporaryinvestment;theenterpriseshallcalculateanddeterminetheto-be-capitalizedamountonthegeneralborrowingbymultiplyingtheweightedaverageassetdisbursementofthepartoftheaccumulativeassetdisbursementsminusthegeneralborrowingbythecapitalizationrateofthegeneralborrowingused.Thecapitalizationrateshallbecalculatedanddeterminedinlightoftheweightedaverageinterestrateofthegeneralborrowing.
25.IntangibleAssetsTheCompany’sintangibleassetsincludelanduserights,patentedtechnologyandnon-proprietarytechnology,whicharemeasuredatactualcostatthetimeofacquisition.Acquiredintangibleassetsarestatedatactualcostbasedontheactualpricepaidandrelatedotherexpenses.Theactualcostofintangibleassetsinvestedbyinvestorsisdeterminedatthevalue
agreedintheinvestmentcontractoragreement,butiftheagreedvalueinthecontractoragreementisnotfair,theactualcostisdeterminedatfairvalue.Intangibleassets,suchaspatents,acquiredinamergernotundercommoncontrolbutownedbytheacquireebutnotrecognizedinitsfinancialstatements,arerecognizedasintangibleassetsatfairvalueatthetimeofinitialrecognitionoftheacquiree’sassets.Landuserightsareamortizedequallyovertheyearsfromthecommencementdateofthegrant;intangibleassetssuchassoftwareandpatentsareamortizedequallyovertheshortestoftheestimatedusefullife,thecontractualbeneficiarylifeandtheeffectivelifeprescribedbylaw.Theamortizationamountischargedtothecostoftherelatedassetsandcurrentprofitorlossaccordingtotheirbeneficiaries.Theestimatedusefullifeandamortizationmethodofintangibleassetswithfiniteusefullivesarereviewedattheendofeachyear.Accountingestimationmethodsareusedwhenchangesarerequired.ThemainresearchanddevelopmentprojectsoftheCompanyincludetheAIOTscenevoicesystembasedonNLPalgorithm.
(1)Specificcriteriafordividingtheresearchphaseanddevelopmentphase“Research”meansanoriginalandplannedinvestigationtoacquireandunderstandnewscientificortechnicalknowledge.“Development”meanstheapplicationofresearchresultsorotherknowledgetooneormoreplansordesignstoproduceneworsubstantiallyimprovedmaterials,devices,products,ortoobtainnewprocesses,etc.,priortocommercialproductionoruse.Expensesfortheresearchphasearechargedtocurrentprofitorlossasincurred.
(2)SpecificcriteriaforcapitalizationofdevelopmentstageexpendituresExpendituresinthedevelopmentstagearecapitalizedwhenthefollowingconditionsaremet.
①Itisfeasibletechnicallytofinishintangibleassetsforuseorsale;②Itisintendedtofinishanduseorselltheintangibleassets;
③Theusefulnessofmethodsforintangibleassetstogenerateeconomicbenefitsshallbeproved,includingbeingabletoprovethatthereisapotentialmarketfortheproductsmanufacturedbyapplyingtheintangibleassetsorthereisapotentialmarketfortheintangibleassetsitselfortheintangibleassetswillbeusedinternally;
④Itisabletofinishthedevelopmentoftheintangibleassets,andabletouseorselltheintangibleassets,withthesupportofsufficienttechnologies,financialresourcesandotherresources;
⑤Thedevelopmentexpendituresoftheintangibleassetscanbereliablymeasured.
26.ImpairmentofLong-termAssetsFornon-currentfinancialAssetsoffixedAssets,projectsunderconstruction,intangibleAssetswithlimitedservicelife,investingrealestatewithcostmodel,long-termequityinvestmentofsubsidiaries,cooperativeenterprisesandjointventures,theCompanyshouldjudgewhetherdecreaseinvalueexistsonthedateofbalancesheet.Recoverableamountsshouldbetestedfordecreaseinvalueifitexists.OtherintangibleAssetsofreputationanduncertainservicelifeandothernon-accessibleintangibleassetsshouldbetestedfordecreaseinvaluenomatterwhetheritexists.Iftherecoverableamountislessthancarryingvalueinimpairmenttestresults,theprovisionfor
impairmentofdifferencesshouldincludeinimpairmentloss.Recoverableamountswouldbethehigherofnetvalueofassetfairvaluedeductingdisposalchargesorpresentvalueofpredictedcashflow.Assetfairvalueshouldbedeterminedaccordingtonegotiatedsalespriceoffairtrade.Ifnosalesagreementexistsbutwithassetactivemarket,fairvalueshouldbedeterminedaccordingtotheBuyer’spriceoftheasset.Ifnosalesagreementorassetactivemarketexists,assetfairvaluecouldbeacquiredonthebasisofbestinformationavailable.Disposalexpensesincludelegalfees,taxes,cartageorotherdirectexpensesofmerchantableAssetsrelatedtoassetdisposal.PresentvalueofpredictedassetcashflowshouldbedeterminedbytheproperdiscountrateaccordingtoAssetsinserviceandpredictedcashflowoffinaldisposal.AssetdepreciationreservesshouldbecalculatedonthebasisofsingleAssets.IfitisdifficulttopredicttherecoverableamountsforsingleAssets,recoverableamountsshouldbedeterminedaccordingtothebelongingassetgroup.Assetgroupistheminimumassetcombinationproducingcashflowindependently.Inimpairmenttest,carryingvalueofthebusinessreputationinfinancialreportshouldbesharedtobeneficialassetgroupandassetgroupcombinationincollaborationofbusinessmerger.Itisshowninthetestthatifrecoverableamountsofsharedbusinessreputationassetgrouporassetgroupcombinationarelowerthanbookvalue,itshoulddeterminetheimpairmentloss.Impairmentlossamountshouldfirstlybedeductedandsharedtothecarryingvalueofbusinessreputationofassetgrouporassetgroupcombination,thendeductcarryingvalueofallassetsaccordingtoproportionsofothercarryingvalueofaboveassetsinassetgrouporassetgroupcombinationexceptbusinessreputation.Aftertheassetimpairmentlossisdetermined,recoverablevalueamountswouldnotbereturnedinfuture.
27.Long-termDeferredExpensesTheLong-termdeferredexpensesoftheCompanyincludingrenovationcost,moldcostandsoonshallbeamortizedevenlyduringthebenefitperiod.Iftheselong-termdeferredexpensescannotbenefitthefutureaccountingperiod,theamortizedvalueofthisitemthathasnotbeenamortizedshallbetransferredtothecurrentprofitandloss.
28.ContractLiabilitiesLiabilitiesofcontractsrefertotheCompany'sobligationtotransfergoodstocustomersduetotheconsiderationreceivedorreceivablefromcustomers.Beforethetransfers,ifthecustomerhaspaidtheconsiderationoriftheCompanyhasobtainedtherighttounconditionallycollectthecontractconsideration,theliabilitiesofcontractsshallberecognizedbasedontheamountreceivedorreceivableattheearlierpointbetweentheactualpaymentbythecustomerandthepaymentdue.
29.EmployeeCompensationSalariesofstaffoftheCompanyincludeshort-termsalary,post-employmentbenefits,terminationcompensation,andotherlong-termbenefits.Short-termsalarymainlyincludeswages,bonuses,allowancesandsubsidies,aswellasemployeebenefits,medicalinsurance,maternityinsurance,employmentinjuryinsurance,housingprovidentfund,laborunionexpenses,andstaffeducationexpenses,andnon-monetarybenefits.Duringtheaccountingperiodwhentheemployeesprovideservices,theactualshort-termcompensationisrecognisedasaliabilitythatshallbeincludedinthecurrentprofitandlossorthecostofrelatedassetsaccordingtothebeneficiary.
Thepost-employmentbenefitsmainlyincludethebasicendowmentinsurance,etc.TheyaredividedintodefinedcontributionplansanddefinedbenefitplansinaccordancewiththerisksandobligationsundertakenbytheCompany.Accordingtothedefinedcontributionplan,thedepositpaidtoaseparateentityinexchangefortheservicesprovidedbytheemployeesduringtheaccountingperiodonthebalancesheetdateisrecognizedasliabilities,andshallbeincludedinthecurrentprofitandlossorthecostofrelatedassetsaccordingtothebeneficiary.IftheCompanyhasadefinedbenefitplan,thespecificaccountingmethodshouldbeexplained.Whenterminatinglabourrelationsbeforeexpirationofcontract,orlayoffswithcompensations,andtheCompanycannotterminatethelabourrelationsunilaterallyorreducethedemissionwelfare,remunerationandliabilitiesproducedfromthedemissionwelfareshouldbedeterminedandincludedincurrentprofitsandlosseswhendeterminingthecostsofdemissionwelfareandrecombination.However,demissionwelfarenotfullypaidwithin12monthsafterannualReportingPeriodshouldbehandledthesameasotherlong-termemployees’payrolls.Theinsideemployeeretirementplanistreatedbyadoptingthesameprinciplewiththeabovedismissionwelfare.TheCompanywouldrecordedthesalaryandthesocialsecurityinsurancefeespaidandsoonfromtheemployee’sserviceterminationdatetonormalretirementdateintocurrentprofitsandlosses(dismissionwelfare)undertheconditionthattheymeettherecognitionconditionsofestimatedliabilities.Theotherlong-termwelfarethattheCompanyofferstothestaffs,ifmetwiththesettingdrawingplan,shouldbeaccountingdisposedaccordingtothesettingdrawingplan,whiletherestshouldbedisposedaccordingtothesettingrevenueplan.
30.ProvisionsTheCompanyshouldrecognizetherelatedobligationasaprovisionforliabilitywhentheobligationmeetsthefollowingconditions:(1)Thatobligationisapresentobligationoftheenterprise;(2)Itisprobablethatanoutflowofeconomicbenefitsfromtheenterprisewillberequiredtosettletheobligation;(3)Areliableestimatecanbemadeoftheamountoftheobligation.Onthebalancesheetdate,anenterpriseshalltakeintofullconsiderationoftherisks,uncertainty,timevalueofmoney,andotherfactorspertinenttotheContingenciestomeasuretheprovisionsinaccordancewiththebestestimateofthenecessaryexpensesfortheperformanceofthecurrentobligation.Whenallorsomeoftheexpensesnecessaryfortheliquidationofanprovisionsofanenterpriseisexpectedtobecompensatedbyathirdparty,thecompensationshouldbeseparatelyrecognizedasanassetonlywhenitisvirtuallycertainthatthereimbursementwillbeobtained.Besides,theamountrecognizedforthereimbursementshouldnotexceedthecarryingvalueoftheestimatedliabilities.
31.PrinciplesofRevenueRecognitionandMeasurementMethodTherevenueoftheCompanymainlyconsistsoftheincomefrommainbusinessandtheincomefromotherbusinesses.
(1)RevenuerecognitionprincipleThecompanyhasfulfilledtheperformanceobligationsinthecontract,thatis,whenthecustomerobtainscontroloftherelevantgoodsorservices,revenueisrecognized.Obtainingcontrolover
NotestotheFinancialStatementsofKonkaGroupCo.,Ltd.
FortheYearfrom1January2020to31December2020(allamountsinRMByuanunlessotherwisestated)
relatedgoodsorservicesmeansbeingabletoleadtheuseofthegoodsortheprovisionofsuchservicesandobtainalmostalloftheeconomicbenefitsfromit.Onthestartingdateofthecontract,thecompanyevaluatesthecontract,identifieseachindividualperformanceobligationcontainedinthecontract,anddetermineswhethereachindividualperformanceobligationisperformedwithinacertainperiodoftimeoratacertainpointintime.Whenoneofthefollowingconditionsismet,itisaperformanceobligationwithinacertainperiodoftime,otherwise,itisaperformanceobligationatacertainpointintime:
①Thecustomerobtainsandconsumestheeconomicbenefitsbroughtbythecompany'sperformanceatthesametimethecompanyperformsthecontract.
②Thecustomercancontroltheproductsunderconstructionduringtheperformanceofthecompany.
③Thegoodsproducedduringtheperformanceofthecompanyhaveirreplaceableuses,andthecompanyhastherighttocollectpaymentsforthecumulativeperformanceofthecontractduringtheentirecontractperiod.Forperformanceobligationsperformedwithinacertainperiodoftime,thecompanyrecognizesrevenueaccordingtotheperformanceprogressduringthatperiod.Whentheperformanceprogresscannotbereasonablydetermined,ifthecostincurredbythecompanyisexpectedtobecompensated,therevenueshallberecognizedaccordingtotheamountofthecostincurreduntiltheperformanceprogresscanbereasonablydetermined.Forperformanceobligationsperformedatacertainpointintime,thecompanyrecognizesrevenueatthepointwhenthecustomerobtainscontroloftherelevantgoodsorservices.Whenjudgingwhetheracustomerhasobtainedcontrolofgoodsorservices,thecompanyconsidersthefollowingsigns:
①TheCompanyenjoysthecurrentrighttoreceivepaymentforthegoodsorservices.②TheCompanyhastransferredthelegalownershipoftheproducttothecustomer.
③TheCompanyhastransferredthegoodsinkindtothecustomer.
④TheCompanyhastransferredthemainrisksandrewardsoftheownershipoftheproducttothecustomer.
⑤Thecustomerhasacceptedthegoodsorservices.Thecompanyhastransferredgoodsorservicestocustomersandtherighttoreceiveconsiderationislistedascontractassets,andcontractassetsaredevaluedonthebasisofexpectedcreditlosses.Thecompany'sunconditionalrighttocollectconsiderationfromcustomersislistedasreceivables.Thecompany’sobligationtotransfergoodsorservicestocustomersduetotheconsiderationreceivedfromcustomersislistedascontractliabilities.
NotestotheFinancialStatementsofKonkaGroupCo.,Ltd.
FortheYearfrom1January2020to31December2020(allamountsinRMByuanunlessotherwisestated)
(2)Principlesofincomemeasurement
①Ifthecontractcontainstwoormoreperformanceobligations,atthebeginningofthecontract,thecompanywillallocatethetransactionpricetoeachindividualperformanceobligationbasedontherelativeproportionofthestand-alonesellingpriceofthegoodsorservicespromisedbyeachindividualperformanceobligation.Revenueismeasuredatthetransactionpriceofeachindividualperformanceobligation.
②Thetransactionpriceistheamountofconsiderationthatthecompanyexpectstobeentitledtoreceiveduetothetransferofgoodsorservicestocustomers,excludingpaymentscollectedonbehalfofthirdpartiesandpaymentsexpectedtobereturnedtocustomers.Thetransactionpriceconfirmedbythecompanydoesnotexceedtheamountatwhichtheaccumulatedconfirmedincomewillmostlikelynotundergoasignificantreversalwhentherelevantuncertaintyiseliminated.Itisexpectedthatthemoneyreturnedtothecustomerwillnotbeincludedinthetransactionpriceasaliability.
③Ifthereisvariableconsiderationinthecontract,suchascashdiscountsandpriceguaranteesinpartofthecontractbetweenthecompanyanditscustomers,thecompanydeterminesthebestestimateofthevariableconsiderationaccordingtotheexpectedvalueorthemostlikelyamount,butincludesthevariableThetransactionpriceoftheconsiderationshallnotexceedtheamountatwhichtheaccumulatedconfirmedincomeisunlikelytobereversedsignificantlywhentherelevantuncertaintyiseliminated.
④Fortheconsiderationpayabletocustomers,thecompanyoffsetsthetransactionpricefromtheconsiderationpayabletocustomers,andoffsetsthecurrentincomeatthetimewhentherelevantincomeisrecognizedandthepayment(orpromisedtopay)thecustomerconsiderationislater,unlesstheconsiderationpayableisforObtainotherclearlydistinguishableproductsfromcustomers.
⑤Forsaleswithasalesreturnclause,whenthecustomerobtainscontroloftherelevantproduct,thecompanyrecognizesrevenuebasedontheamountofconsiderationexpectedtobereceivedduetothetransferoftheproducttothecustomer,andtheexpectedreturnduetothesalesreturnisrecognizedasanestimatedliability;Atthesametime,accordingtotheexpectedbookvalueofthereturnedgoodsatthetimeoftransfer,thebalanceafterdeductingtheestimatedcostofrecoveringthegoods(includingthevalueimpairmentofthereturnedgoods)isrecognizedasanasset,thatis,thereturncostreceivable,accordingtothetransferredgoodsThebookvalueatthetimeofthetransfer,deductingthenetcarry-overcostoftheaforementionedassetcost.Oneachbalancesheetdate,thecompanyre-estimatesthefuturesalesreturnsandre-measurestheaforementionedassetsandliabilities.
⑥Ifthereisasignificantfinancingcomponentinthecontract,thecompanyshalldeterminethetransactionpricebasedontheamountpayableincashwhenthecustomerassumescontrolofthegoodsorservices.Usingthediscountratethatdiscountsthenominalamountofthecontractconsiderationintothecurrentcommodityprice,thedifferencebetweenthedeterminedtransactionpriceandtheamountoftheconsiderationpromisedinthecontractisamortizedbytheactualinterestmethodduringthecontractperiod.Onthestartingdateofthecontract,thecompany
expectsthatthetimebetweenthecustomer'sacquisitionofcontrolofthegoodsorservicesandthecustomer'spaymentofthepricewillnotexceedoneyear,regardlessofthesignificantfinancingcomponentsinthecontract.
⑦Accordingtocontractualagreements,legalprovisions,etc.,thecompanyprovidesqualityassurancefortheproductssoldandtheassetsbuilt.Forguarantee-typequalityassurancetoassurecustomersthatthegoodssoldmeettheestablishedstandards,thecompanyconductsaccountingtreatmentinaccordancewith"contingentevents-estimatedliabilities".Fortheservicequalityassurancethatprovidesaseparateserviceinordertoassurecustomersthatthegoodssoldmeettheestablishedstandards,thecompanyregardsitasasingleperformanceobligation,basedonthestand-alonesellingpriceofthequalityassuranceofgoodsandservices.Inarelativeproportion,partofthetransactionpriceisallocatedtoservicequalityassurance,andrevenueisrecognizedwhenthecustomerobtainscontroloftheservice.Whenassessingwhetherthequalityassuranceprovidesaseparateserviceinadditiontoensuringthattheproductssoldmeettheestablishedstandards,thecompanyconsiderswhetherthequalityassuranceisalegalrequirement,thequalityassuranceperiod,andthenatureofthecompany'scommitmenttoperformthetasks.
⑧Whentheconstructioncontractbetweenthecompanyandthecustomerischanged:①Ifthecontractchangeaddsclearlydistinguishableconstructionservicesandcontractprices,andthenewcontractpricereflectsthestand-alonesellingpriceofthenewconstructionservices,thecompanywillThecontractchangeshallbetreatedasaseparatecontractforaccountingtreatment;②Ifthecontractchangedoesnotfallintotheabove-mentionedcircumstance①,andthereisacleardistinctionbetweentheconstructionservicesthathavebeentransferredandtheconstructionservicesthathavenotbeentransferredonthedateofthecontractchange,thecompanyTreatitastheterminationoftheoriginalcontract,andatthesametime,mergetheunfulfilledpartoftheoriginalcontractandthechangedpartofthecontractintoanewcontractforaccountingtreatment;③Ifthecontractchangedoesnotfallintotheabovesituation①,andtheconstructionservicehasbeentransferredonthedateofcontractchangeThereisnocleardistinctionbetweentheconstructionserviceandtheuntransferredconstructionservice.Thecompanyaccountsforthechangedpartofthecontractasacomponentoftheoriginalcontract.Theresultingimpactontherecognizedrevenuewillbeadjustedonthedateofcontractchange.
(3)Specificmethodsofrevenuerecognition
①RevenuerecognizedontimeThecompany'ssalesofhouseholdappliances,electroniccomponents,etc.,belongtotheperformanceobligationperformedatacertainpointintime.Recognitionconditionsforincomefromdomesticsalesofgoodsandoverseasdirectsalesofgoods:Thecompanyhasdeliveredtheproducttothecustomerinaccordancewiththecontractandthecustomerhasreceivedtheproduct,thepaymenthasbeenrecoveredorthereceiptofpaymenthasbeenobtained,andtherelevanteconomicbenefitsarelikelytoflowin.Themainrisksandrewardshavebeentransferred,andthelegalownershipofthegoodshasbeentransferred.Conditionsforconfirmingtheincomeofexportedgoods:Thecompanyhasdeclaredtheproductsforexportaccordingtothecontract,obtainedthebilloflading,anddeliveredthegoodstothe
carrierentrustedbythepurchaser.Thepaymenthasbeenrecoveredorthereceiptofpaymenthasbeenobtainedandrelevanteconomicbenefitsarelikelytoflowin.Themainrisksandrewardsofcommodityownershiphavebeentransferred,andthelegalownershipofcommoditieshasbeentransferred.
②IncomeconfirmedaccordingtotheperformanceprogressThecompany'sbusinesscontractswithcustomersforprojectconstruction,onlineadvertising,operatingleases,etc.areperformanceobligationsperformedwithinacertainperiodoftime,andrevenueisrecognizedaccordingtotheprogressoftheperformance.
32.GovernmentGrantsThegovernmentgrantsoftheCompanyaredividedintoasset-basedgrantsrelatedtoandincome-basedgrants.Asset-basedgrantsrefertothegovernmentgrantsforlong-termassetsobtainedbythepurchase,construction,andotherways.Income-basedgrantsrefertoothergrants.Ifthebeneficiariesarenotspecifiedingovernmentdocuments,theCompanywillmakethedistinctionaccordingtotheaforesaidprinciple.Beneficiarieswhicharedifficulttocategorizeshallbeclassifiedasanincome-basedgovernmentgrantasawhole.Currentelementsofgovernmentgrantsshallbemeasuredbasedontheamountactuallyreceived.Thoseshallbemeasuredaccordingtotheamountreceivablearegrantspaidaccordingtoafixedquotastandard,orfundsthatmeettherelevantconditionsstipulatedbythefinancialsupportpolicywithconclusiveevidenceattheendoftheyearandwhichareexpectedasthefinancialsupport.Non-monetaryelementsofthegovernmentgrantsshallbemeasuredatfairvalue.Thosewhosefairvaluecannotbeobtainedreliablyshallbemeasuredatitsnominalamount(RMB1).Asset-basedgrantsshallbeusedtooffsetthecarryingvalueofrelatedassetsorpresentedasdeferredincome,andshall,overthelifeoftherelatedasset,beincludedinthecurrentprofitsandlossesbytheequalamortizationmethod.Iftherelatedassetissold,transferred,scrapped,ordamagedbeforetheendofitsusefullife,itsdeferredincomethathasnotbeendistributedshallbetransferredtothecurrentprofitandlossofassetdisposal.Income-basedgrantsthatareusedtocompensaterelatedcostsorlossesinsubsequentperiodsshallbedeemedasdeferredincomeandshallbeincludedinthecurrentprofitsandlossesduringtheperiodwhentherelatedcostsorlossesarerecognized.Governmentgrantsrelatedtoroutineactivitiesshallbeincludedinotherincomeinaccordancewiththenatureofthetransaction.Governmentgrantsnotrelatedtoroutineactivitiesshallbeincludedinnon-operatingincomeandexpenditure.TheCompanyobtainsinterestgrantsonpolicy-relatedconcessionalloansintwodifferentways:
theinterestsubsidyfundsareallocatedbythegovernmenteithertothelendingbankordirectlytotheCompany.Therespectiveaccountingtreatmentiscarriedoutasfollows:
(1)Wherethegovernmentallocatesthefundstothelendingbank,andthebankprovidesaloantotheCompanyatapolicy-relatedpreferentialinterestrate,theactualamountoftheloanreceivedistakenastheentryvalue,andtheborrowingcostsarecalculatedbasedontheloanprincipalandthepolicy-relatedpreferentialinterestrate.(Alternatively,thefairvalueoftheloanistakenastheentryvalue,andtheborrowingcostsarecalculatedusingtheeffectiveinterestratemethod.Thedifferencebetweentheactualamountreceivedandthefairvalueisrecognizedasdeferredincome,
whichisamortizedusingtheeffectiveinterestratemethodduringtheloantermtooffsetborrowingcosts);
(2)WherethegovernmentallocatesthefundsdirectlytotheCompany,thegrantsareoffsetagainstborrowingcosts.WherethegovernmentgrantsthattheCompanyhasrecognizedinaccountingneedtobereturned,theaccountingtreatmentinthecurrentperiodiscarriedoutasfollows:
1)Ifthebookvalueofanassetisoffsetoninitialrecognition,thebookvaluewillbeadjusted;
2)Ifthereisdeferredincome,thebookbalanceofthedeferredincomewillbeoffset,andtheexcesswillbeincludedinprofitorlossinthecurrentperiod;
3)Underanyothercircumstances,thegrantswillbeincludedinprofitorlossinthecurrentperiod.
33.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilitiesTheCompany'sdeferredtaxassetsanddeferredtaxliabilitiesarecalculatedandrecognizedbasedonthedifference(temporarydifference)betweenthetaxbaseandbookvalueoftheassetsandliabilities.Inthecaseofdeductiblelossesthatcanbedeductedfromtaxableincomeinsubsequentyearsinaccordancewiththeprovisionsofthetaxlaws,thecorrespondingdeferredincometaxassetsarerecognized.Inthecaseoftemporarydifferencesarisingfromtheinitialrecognitionofgoodwill,thecorrespondingdeferredincometaxliabilitiesarenotrecognized.Withrespecttotemporarydifferencesarisingfromtheinitialrecognitionofanassetorliabilityinatransactionwhichisn’tabusinesscombinationandwhichaffectsneitheraccountingprofitnortaxableincome(ordeductiblelosses),thecorrespondingdeferredincometaxassetsanddeferredincometaxliabilitiesarenotrecognized.Onthebalancesheetdate,thedeferredincometaxassetsanddeferredincometaxliabilitiesaremeasuredatthetaxrateapplicabletotheperiodduringwhichtheassetsareexpectedtoberecoveredortheliabilitiesareexpectedtobesettled.TheCompanyrecognizesdeferredincometaxassetstotheextentofthetaxableincomewhichitismostlikelytoobtainandwhichcanbedeductedfromdeductibletemporarydifferences,deductiblelossesandtaxcredits.
34.LeasingFinancingleasingvirtuallytransferredthewholerisksandleasingofthecompensationrelatedtotheassetsownershipandtheirownershipmayeventuallybetransferredormaybenot.Otherleasingexceptforthefinancingleasingisoperatingleasing.
(1)BusinessofoperatingleasesrecordedbytheCompanyasthelesseeTherentexpensesfromoperatingleasesshallberecordedbythelesseeintherelevantassetcostsortheprofitsandlossesofthecurrentperiodbyusingthestraight-linemethodovereachperiodoftheleaseterm.Theinitialdirectcostsshallberecognizedastheprofitsandlossesofthecurrentperiod.Thecontingentrentsshallberecordedintotheprofitsandlossesofthecurrentperiodinwhichtheyactuallyarise.
(2)BusinessofoperatingleasesrecordedbytheCompanyasthelessorTherentincomesfromoperatingleasesshallberecognizedastheprofitsandlossesofthecurrentperiodbyusingthestraight-linemethodovereachperiodoftheleaseterm.Theinitialdirectcostsofgreatamountshallbecapitalizedwhenincurred,andberecordedintocurrentprofitsandlossesinaccordancewiththesamebasisforrecognitionofrentincomesoverthewholeleaseterm.Theinitialdirectcostsofsmallamountshallberecordedintocurrentprofitsandlosseswhenincurred.Thecontingentrentsshallberecordedintotheprofitsandlossesofthecurrentperiodinwhich
theyactuallyarise.
(3)BusinessoffinanceleasesrecordedbytheCompanyasthelesseeOntheleasebeginningdate,theCompanyshallrecordtheloweroneofthefairvalueoftheleasedassetandthepresentvalueoftheminimumleasepaymentsontheleasebeginningdateastheenteringvalueinanaccount,recognizetheamountoftheminimumleasepaymentsastheenteringvalueinanaccountoflong-termaccountpayable,andtreatthebalancebetweentherecordedamountoftheleasedassetandthelong-termaccountpayableasunrecognizedfinancingcharges.Besides,theinitialdirectcostsdirectlyattributabletotheleaseditemincurredduringtheprocessofleasenegotiatingandsigningtheleasingagreementshallberecordedintheassetvalueofthecurrentperiod.Thebalancethroughdeductingunrecognizedfinancingchargesfromtheminimumleasepaymentsshallberespectivelystatedinlong-termliabilitiesandlong-termliabilitiesduewithin1year.Unrecognizedfinancingchargesshallbeadoptedbytheeffectiveinterestratemethodintheleaseterm,soastocalculateandrecognizecurrentfinancingcharges.Thecontingentrentsshallberecordedintotheprofitsandlossesofthecurrentperiodinwhichtheyactuallyarise.
(4)BusinessoffinanceleasesrecordedbytheCompanyasthelessorOnthebeginningdateoftheleaseterm,theCompanyshallrecognizethesumoftheminimumleasereceiptsontheleasebeginningdateandtheinitialdirectcostsastheenteringvalueinanaccountofthefinancingleasevaluesreceivable,andrecordtheunguaranteedresidualvalueatthesametime.Thebalancebetweenthesumoftheminimumleasereceipts,theinitialdirectcostsandtheunguaranteedresidualvalueandthesumoftheirpresentvaluesshallberecognizedasunrealizedfinancingincome.Thebalancethroughdeductingunrealizedfinancingincomesfromthefinanceleaseaccountsreceivableshallberespectivelystatedinlong-termclaimsandlong-termclaimsduewithin1year.Unrecognizedfinancingincomesshallbeadoptedbytheeffectiveinterestratemethodintheleaseterm,soastocalculateandrecognizecurrentfinancingrevenues.Thecontingentrentsshallberecordedintotheprofitsandlossesofthecurrentperiodinwhichtheyactuallyarise.
35.ChangesinMainAccountingPoliciesandEstimates
(1)ChangesofaccountingpoliciesIn2017,theMinistryofFinanceissuedtherevised"AccountingStandardsforBusinessEnterprisesNo.14-Revenue"(referredtoasthe"NewRevenueStandards").TheCompanystartstoimplementtheabovenewlyrevisedstandardssince1January2020.Inaccordancewiththelinkupprovision,noadjustmentwasmadetoinformationofcomparativeperiod,andtheCompanyretroactivelyadjustedtheretainedearningsofperiod-beginorothercomprehensiveincomebasedonthedifferencebetweenthecurrentstandardsandthenewstandardsonthefirstexecutiondate.Thenewrevenuestandardestablishesanewrevenuerecognitionmodelforregulatingrevenuegeneratedfromcontractswithcustomers.Inordertoimplementthenewrevenuestandards,thecompanyreassessedtherecognitionandmeasurement,accountingandpresentationofmaincontractrevenue.Accordingtothenewrevenuestandard,thecompanychoosestoadjustonlythecumulativeimpactofcontractsthathavenotbeencompletedonJanuary1,2020,andforcontractchangesthatoccurbeforethebeginningoftheearliestcomparableperiod(ie,January1,2020)Simplifiedprocessing,thatis,accordingtothefinalarrangementofthecontractchange,identifythefulfilledandunfulfilledperformanceobligations,determinethetransactionprice,andallocatethetransactionpricebetweenthefulfilledandunfulfilledperformanceobligations.Thecumulativeimpactamountofthefirstimplementationadjuststheamountofrelateditemsinthe
financialstatementsatthebeginningofthefirstimplementationperiod(ie1January2020).The2019financialstatementshavenotbeenrestated.
(2)ChangesinAccountingEstimatesNosuchcasesintheReportingPeriod.
(3)AdjustmentstotheFinancialStatementsattheBeginningoftheFirstExecutionYearofanyNewStandardsGoverningRevenueorLeasessince20201）Consolidatedbalancesheet:
Unit:RMB
| Item | 31December2019 | 1January2020 | Adjustment |
| Currentassets: | |||
| Accountsreceivable | 4,416,179,657.87 | 3,804,339,643.15 | -611,840,014.72 |
| Inventories | 5,318,503,044.69 | 5,307,497,440.88 | -11,005,603.81 |
| Contractassets | 628,566,815.99 | 628,566,815.99 | |
| Othercurrentassets | 2,093,212,552.25 | 2,104,218,156.06 | 11,005,603.81 |
| Totalcurrentassets | 25,422,786,872.67 | 25,439,513,673.94 | 16,726,801.27 |
| Totalassets | 42,586,955,452.27 | 42,603,682,253.54 | 16,726,801.27 |
| Currentliabilities: | |||
| Advancesfromcustomers | 1,076,856,387.08 | -1,076,856,387.08 | |
| Contractliabilities | 959,538,151.80 | 959,538,151.80 | |
| Otherpayables | 2,374,287,243.20 | 2,281,173,106.78 | -93,114,136.42 |
| Othercurrentliabilities | 16,726,801.27 | 16,726,801.27 | |
| Totalcurrentliabilities | 22,145,831,594.58 | 21,952,126,024.15 | -193,705,570.43 |
| Non-currentliabilities: | |||
| Provisions | 206,591.51 | 93,320,727.93 | 93,114,136.42 |
| Othernon-currentliabilities | 117,318,235.28 | 117,318,235.28 | |
| Totalnon-currentliabilities | 10,514,426,070.89 | 10,724,858,442.59 | 210,432,371.70 |
| Totalliabilities | 32,660,257,665.47 | 32,676,984,466.74 | 16,726,801.27 |
| Totalliabilitiesandshareholders’equity | 42,586,955,452.27 | 42,603,682,253.54 | 16,726,801.27 |
2）BalanceSheetoftheCompanyastheParent
Unit:RMB
| Item | 31December2019 | 1January2020 | Item |
| Currentassets: | |||
| Accountsreceivable | 9,564,720,940.39 | 9,580,894,472.00 | 16,173,531.61 |
| Item | 31December2019 | 1January2020 | Item |
| Inventories | 218,644,308.47 | 207,949,690.07 | -10,694,618.40 |
| Othercurrentassets | 1,096,689,897.40 | 1,107,384,515.80 | 10,694,618.40 |
| Totalcurrentassets | 27,118,078,820.83 | 27,134,252,352.44 | 16,173,531.61 |
| Non-currentassets: | |||
| Totalnon-currentassets | 9,863,245,391.12 | 9,863,245,391.12 | |
| Totalassets | 36,981,324,211.95 | 36,997,497,743.56 | 16,173,531.61 |
| Currentliabilities: | |||
| Advancesfromcustomers | 318,839,961.84 | -318,839,961.84 | |
| Contractliabilities | 269,891,156.62 | 269,891,156.62 | |
| Otherpayables | 3,193,392,734.69 | 3,181,261,535.24 | -12,131,199.45 |
| Othercurrentliabilities | 16,173,531.61 | 16,173,531.61 | |
| Totalcurrentliabilities | 22,481,405,801.52 | 22,436,499,328.46 | -44,906,473.06 |
| Non-currentliabilities: | |||
| Provisions | 206,591.51 | 12,337,790.96 | 12,131,199.45 |
| Othernon-currentliabilities | 48,948,805.22 | 48,948,805.22 | |
| Totalnon-currentliabilities | 8,507,373,492.54 | 8,568,453,497.21 | 61,080,004.67 |
| Totalliabilities | 30,988,779,294.06 | 31,004,952,825.67 | 16,173,531.61 |
| Totalliabilitiesandshareholders’equity | 36,981,324,211.95 | 36,997,497,743.56 | 16,173,531.61 |
ThemainchangesandimpactsoftheimplementationofthenewrevenuestandardontheCompanyareasfollows:
TheCompanyreclassifiedthecontractconsiderationreceivedfromcustomersinadvanceduetothetransferofgoodsfromtheitemof"Advancesfromcustomers"totheitemof"Contractliabilities"(orothernon-currentliabilities);SomeoftheCompany'sreceivablesdonotmeettheconditionsforunconditional(thatis,onlydependentonthepassageoftime)tocollectconsiderationfromcustomers,andtheCompanyreclassifiesthemas"Contractassets";TheCompanyreclassifiesthewarrantyreceivablesthathavenotreachedthecollectionperiodas"Contractassets";TheCompanyreclassifiesthequalityassurancefromtheitemof“Otherpayments”totheitemof“Provisions”;TheCompanyrecognizesthebalanceofthecarryingvalueofgoodsatthetimeoftransferexpectedtobereturnedafterdeductedestimatedcostforcollectingthesaidgoods(includingthevalueimpairmentofthereturnedgoods)asanasset,thatisthereturncostreceivablewhichispresentedas“othercurrentassets”foraccounting.
V.Taxation
1.MainTaxesandTaxRate
| Categoryoftaxes | Basis | Specificsituationofthetaxesrate |
| VAT | CalculatedtheoutputtaxatthetaxrateandpaidtheVATbytheamountafterdeductingthedeductiblewithholdingVATatcurrentperiod,ofwhichtheVATapplicabletoeasycollectionwon’tbelongtothedeductiblewithholdingVAT. | 1%、3%、5%、6%、9%、13% |
| Urbanmaintenanceandconstructiontax | Thecirculatingtaxactuallypaid | Paidat5%:DongguanKonka,XingDaHongYe,XinfengMicrocrystalline,BoluoKonkaPrecision,BoluoKonka,DongguanPacking,NingboKanghanrui,JiangsuKonkaSmart,ShanghaiKonka,ChengduAnren,BinzhouBeihaiJingmai,BinzhouEconZhongke,SuiningPengxiKangrun,DayiKangrunWater,LushanKangrunEnvironmental,FunanKangrunWater,SubeiKangrunWater,MengchengKangrun,TingyuanEnvironmental.Paidat7%:KonkaCapital.Paidat1%:JiangxiKonka,NanoCrystallizedGlass,Jiangkang(Shanghai)Technology.Paidat7%:othersubsidiaries. |
| Educationsurtax | Thecirculatingtaxactuallypaid | 3% |
| Localeducationsurtax | Thecirculatingtaxactuallypaid | ThesubsidiaryWuhanRunyuanSewage:1.5%,ShanghaiKonka:1%andothercompanies:2% |
| Enterpriseincometax | Taxableincome | 25%/2.TaxPreferenceandApprovedDocuments |
Themaintaxpayersofdifferentcorporateincometaxratesareexplainedasfollows:
| Nameofentity | Incometaxrate |
| ElectronicsTechnology,AnhuiKonka,AnhuiTongchuang,EconTechnology,XingDaHongYe,Wankaida,E2info,JiangxiKonka,XinfengMicrocrystalline,NanoCrystallizedGlass,SichuanKonka,BoluoKonkaPrecision,ChongqingOptoelectronicResearchInstitute,ChongqingKangxingrui | 15% |
| HongKongKonka,KonkaElectricalAppliances | 16.5% |
| Nameofentity | Incometaxrate |
| InternationalTrading,JialiInternational,Kangjietong,JiaxinTechnology,JiaxinTechnology,KonkaElectricalAppliancesInvestment,KonkaSmartTech,KonkaMobility | |
| ChainKingdomMemoryTechnologies | 8.25%/16.5% |
| KonkaEurope | 15% |
| KanghaoTechnology | 22.5% |
| KonkaNorthAmerica | 21% |
| TheCompanyastheParentandothersubsidiaries | 25% |
Note:AccordingtoregulationsofTemporaryProvisionsofIncomeTaxofTrans-boundaryTaxPaymentEnterprisesbyStateAdministrationofTaxation,residententerpriseswithoutbusinessestablishmentorplacesoflegalpersonsshouldbetaxpaymententerpriseswiththeadministrativemeasuresofincometaxof“unifiedcomputing,level-to-leveladministration,localprepayment,liquidationsummary,andfinancetransfer”.Itcameintoforcefrom1January2008.Accordingtotheabovemethods,theCompany’ssalesbranchcompaniesineachareawillhandinthecorporateincometaxesinadvancefrom1January2008andwillbefinalsettleduniformlybytheCompanyattheyear-end.
2.TaxPreferenceandApprovedDocuments
(1)AccordingtoCaishui[2019]No.13:Noticeontheimplementationoftheinclusivetaxreductionandexemptionpolicyforsmallandmicroenterprises,from1January2019to31December2021,theannualtaxableincomeofsmallandprofitableenterprisesisnotTheportionexceedingRMB1millionwillbereducedto25%ofthetaxableincome,andthecorporateincometaxwillbepaidattherateof20%;theportionoftheannualtaxableincomeexceedingRMB1millionbutnotexceedingRMB3millionwillbereducedby50%Includethetaxableincomeandpaycorporateincometaxatarateof20%.
(2)On28December2017,EconTechnology,asubsidiaryoftheCompany,obtainedthe
High-techEnterpriseCertificate(certificateNo.:GR201737001495)jointlyissuedbyDepartmentofScienceandTechnologyofShandongProvince,DepartmentofFinanceofShandongProvince,ShandongProvincialOffice,SAT,ShandongLocalTaxationBureauwithavalidperiodofthreeyears.Accordingtotherelevanttaxregulations,EconTechnologyenjoysrelatedtaxincentivesforhigh-techcompaniesforthreeconsecutiveyearsfrom2017to2019,andissubjecttocorporateincometaxatapreferentialrateof15%.On7December2020,theOfficeoftheNationalHigh-techEnterpriseCertificationandManagementLeadingGrouppublisheditsreplytoShandongProvinceinrespectofthelistofthefirstbatchofhigh-techenterprisesthattheprovincehasfiledforrecord(G.K.H.Z.[2020]No.216).EconTechnologyisincludedonthelist,withGR202037000258asitscertificatenumber.TheCompanyestimatesthattherearenoobstaclesinthereviewofhigh-techenterprises.Asacertifiedhigh-techenterprise,EconTechnologyisentitledtoapreferentialcorporateincometaxrateof15%.
(3)On16October2018,ShenzhenE2infoNetworkTechnologyCo.,Ltd.,thesubsidiaryofthisCompanyobtainedthehigh-techenterprisecertificate(certificateNo.:GR201844201969)jointlyissuedbyShenzhenTechnologyInnovationCommittee,FinanceCommitteeofShenzhenMunicipality,ShenzhenTaxationBureauofSATwithavalidperiodofthreeyears.Accordingtorelatedtaxationregulations,thecompanyenjoysrelatedtaxationpreferentialpoliciesasahigh-techenterprisefrom2018to2020andpaystheenterpriseincometaxasperthepreferentialtaxrateof15%.
(4)On28November2018,theCompany’ssubsidiaryXingDaHongYereceivedtheHigh-techEnterpriseCertificate(No.GR201844008446withthe3-yearperiodofvalidity)jointlyissuedbyDepartmentofScienceandTechnologyofGuangdongProvince,DepartmentofFinanceofGuangdongProvinceandStateAdministrationofTaxation(GuangdongProvincialTaxService).Accordingtorelevanttaxregulations,from2018to2020,theenterpriseshallbeeligibleforenjoyingrelevantpreferentialtaxpoliciesasanewhigh-techenterpriseandcorrespondingcorporateincometaxshallbepaidbasedonthepreferentialtaxrateof15%.
(5)On9September2019,AnhuiKonka,thesubsidiaryoftheCompany,obtainedacertificateofhigh-techenterprisejointlyissuedbyAnhuiScienceandTechnologyDepartment,AnhuiProvincialDepartmentofFinanceandAnhuiProvincialTaxBureauoftheStateAdministrationofTaxation.ThecertificatenumberisGR201934000966andisvalidforthreeyears.Accordingtorelevanttaxregulations,AnhuiKonkashallenjoyrelevantpreferentialtaxpoliciesforhigh-techenterprisesforthreeconsecutiveyearsfrom2019to2021andpaytheenterpriseincometaxatapreferentialtaxrateof15%.
(6)On16September2019,XinfengMicrocrystalline,thesubsidiaryoftheCompany,obtainedahigh-techenterprisecertificatejointlyissuedbyJiangxiScienceandTechnologyDepartment,
JiangxiProvincialDepartmentofFinanceandJiangxiProvincialTaxBureauoftheStateAdministrationofTaxation.ThecertificatenumberisGR201936000744andisvalidforthreeyears.Accordingtorelevanttaxregulations,XinfengMicrocrystallineshallenjoyrelevantpreferentialtaxpoliciesforhigh-techenterprisesforthreeconsecutiveyearsfrom2019to2021andpaytheenterpriseincometaxatapreferentialtaxrateof15%.
(7)On20November2019,AnhuiTongchuang,thesubsidiaryoftheCompany,obtainedahigh-techenterprisecertificatejointlyissuedbyAnhuiScienceandTechnologyDepartment,AnhuiProvincialDepartmentofFinanceandAnhuiProvincialTaxBureauoftheStateAdministrationofTaxation.ThecertificatenumberisGR201934001964andisvalidforthreeyears.Accordingtorelevanttaxregulations,AnhuiTongchuangshallenjoyrelevantpreferentialtaxpoliciesforhigh-techenterprisesforthreeconsecutiveyearsfrom2019to2021andpaytheenterpriseincometaxatapreferentialtaxrateof15%.
(8)On28November2019,SichuanKonka,asubsidiaryoftheCompany,obtainedacertificateofhigh-techenterprisejointlyissuedbySichuanScienceandTechnologyDepartment,SichuanProvincialDepartmentofFinanceandSichuanProvincialTaxBureauoftheStateAdministrationofTaxation.ThecertificatenumberisGR201951002096andisvalidforthreeyears.Accordingtorelevanttaxregulations,SichuanKonkashallenjoyrelevantpreferentialtaxpoliciesforhigh-techenterprisesforthreeconsecutiveyearsfrom2019to2021andpaytheenterpriseincometaxatapreferentialtaxrateof15%.
(9)On2December2019,BokangPrecision,asubsidiaryoftheCompany,obtainedthehigh-techenterprisecertificatejointlyissuedbytheGuangdongProvincialDepartmentofScienceandTechnology,theGuangdongProvincialDepartmentofFinance,theGuangdongStateTaxationBureau,andtheGuangdongLocalTaxationBureau.ThecertificatenumberisGR201944007820,validforthreeyears,accordingtorelevanttaxregulations,BokangPrecisionhasenjoyedrelevantpreferentialtaxpoliciesforhigh-techenterprisesforthreeconsecutiveyearsfrom2019to2021,andissubjecttocorporateincometaxatapreferentialtaxrateof15%.
(10)On9December2019,ElectronicsTechnology,thesubsidiaryoftheCompany,obtainedaCertificateofHigh-techEnterprisejointlyissuedbyShenzhenScienceandTechnologyDepartment,ShenzhenProvincialDepartmentofFinanceandShenzhenProvincialTaxBureauoftheStateAdministrationofTaxation.ThecertificatenumberisGR201944204287andisvalidforthreeyears.Accordingtorelevanttaxregulations,ElectronicsTechnologyshallenjoyrelevantpreferentialtaxpoliciesforhigh-techenterprisesforthreeconsecutiveyearsfrom2019to2021andpaytheenterpriseincometaxatapreferentialtaxrateof15%.
(11)On14September2020,JiangxiKonka,thesubsidiaryoftheCompany,obtainedahigh-techenterprisecertificatejointlyissuedbyJiangxiScienceandTechnologyDepartment,Jiangxi
ProvincialDepartmentofFinanceandJiangxiProvincialTaxBureauoftheStateAdministrationofTaxation.ThecertificatenumberisGR202036000802andisvalidforthreeyears.Accordingtorelevanttaxregulations,JiangxiKonkashallenjoyrelevantpreferentialtaxpoliciesforhigh-techenterprisesforthreeconsecutiveyearsfrom2020to2022andpaytheenterpriseincometaxatapreferentialtaxrateof15%.
(12)On14September2020,NanoCrystallizedGlass,thesubsidiaryoftheCompany,obtainedahigh-techenterprisecertificatejointlyissuedbyJiangxiScienceandTechnologyDepartment,JiangxiProvincialDepartmentofFinanceandJiangxiProvincialTaxBureauoftheStateAdministrationofTaxation.ThecertificatenumberisGR202036000568andisvalidforthreeyears.Accordingtorelevanttaxregulations,NanoCrystallizedGlassshallenjoyrelevantpreferentialtaxpoliciesforhigh-techenterprisesforthreeconsecutiveyearsfrom2020to2022andpaytheenterpriseincometaxatapreferentialtaxrateof15%.
(13)On25November2020,ChongqingOptoelectronicResearchInstitute,thesubsidiaryoftheCompany,obtainedahigh-techenterprisecertificatejointlyissuedbyChongqingMunicipalScienceandTechnologyBureau,ChongqingMunicipalFinanceBureauandChongqingMunicipalTaxBureauoftheStateAdministrationofTaxation.ThecertificatenumberisGR202051101224andisvalidforthreeyears.Accordingtorelevanttaxregulations,ChongqingOptoelectronicResearchInstituteshallenjoyrelevantpreferentialtaxpoliciesforhigh-techenterprisesforthreeconsecutiveyearsfrom2020to2022andpaytheenterpriseincometaxatapreferentialtaxrateof15%.
(14)On11December2020,Wankaida,thesubsidiaryofthisCompanyobtainedthehigh-techenterprisecertificate(certificateNo.:GR202044201940)jointlyissuedbyShenzhenTechnologyInnovationCommittee,FinanceCommitteeofShenzhenMunicipality,ShenzhenTaxationBureauofSATwithavalidperiodofthreeyears.Accordingtorelatedtaxationregulations,Wankaidaenjoysrelatedtaxationpreferentialpoliciesasahigh-techenterprisefrom2020to2022andpaystheenterpriseincometaxasperthepreferentialtaxrateof15%.
(15)InaccordancewiththeNoticeonTaxPolicyIssuesInvolvedintheFurtherImplementationoftheWesternDevelopmentStrategy(C.S.[2011]No.58)andtheAnnouncementonCorporateIncomeTaxIssuesInvolvedintheFurtherImplementationoftheWesternDevelopmentStrategy(Announcement[2012]No.12bytheStateTaxationAdministration),anenterpriseestablishedinthewesternregionwhoismainlyengagedinanindustryspecifiedintheCatalogueofEncouragedIndustriesintheWesternRegionandwhosemainbusinessincomeaccountsforover70%ofitsgrossincomeinthecurrentyear,isentitledtoareducedcorporateincometaxrateof15%.ChongqingKangxingrui,asubsidiaryoftheCompany,iseligibleforthispreferentialtaxpolicy.
(16)AccordingtotheNoticeonIssuesConcerningthePromotionofEnergy-SavingServiceIndustryDevelopmentVATBusinessTaxandCorporateIncomeTaxPolicyIssuedbytheMinistryofFinanceandtheStateAdministrationofTaxation(Caishui[2010]No.110)Fortheincome,theenterpriseenjoysthe"threeexemptionsandthreehalves"preferentialtreatmentofcorporateincometaxsincethetaxyearinwhichthefirstproductionandoperationincomeoftheprojectisobtained.BinhaiSewageandLairunHoldings,subsidiariesoftheCompany,enjoythistaxincentive.BinhaiSewageandLairunHoldingswillbeexemptfromcorporateincometaxfrom2017to2019,andcorporateincometaxwillbeleviedathalfthe25%legaltaxratefrom2020to2022.
(17)Accordingtothefiscalandtaxationdocument[2011]No.100publishedbytheMinistryofFinanceandtheStateAdministrationofTaxation,fortheVATgeneraltaxpayerswhoselltheirself-developedandproducedsoftwareproducts,theVATshallbeleviedattherateof13%,andthenthepartthattheactualtaxburdenontheirVATexceeds3willbeimplementedwiththepolicyofimmediatewithdrawal.TheCompany’ssubsidiaries,WankaidaTechnology,YouzhihuiandElectronicsTechnologyallenjoythispreferentialpolicy.
(18)AccordingtotheregulationsoftheSpecialCatalogueofVATConcessionsforProductsandLaborswithComprehensiveUtilizationofResourcesissuedbytheMinistryofFinanceandtheStateAdministrationofTaxation(FinanceandTaxation[2015]No.78),thewastewatertreatmentbusinessoperatedbyLairunHoldingsandBinhaiSewage,subsidiariesoftheCompany,belongstothethiscatalogue.ThenafterleviedtheVATatthestatutorytaxrate,itcurrentlycarriesoutthetaxrateof6%(SATAnnouncement[2020]No.9,theactualtaxburdenonthewastewatertreatmentincometaxwillberefundedinaccordancewiththe70%oftheactualtaxburden,andtheactualtaxburdenontherenewablewaterincomeVATwillberefundedimmediatelyat50%.
(19)AccordingtotheAnnouncementontheApplicablePoliciesfortheSettlementandPaymentofCorporateIncomeTaxofIntegratedCircuitDesignEnterprisesandSoftwareEnterprisesin2019(C.S.[2020]No.29),integratedcircuitdesignenterprisesandsoftwareenterprisesthatarelegallyestablishedwithintheterritoryofChinaandmeetcertainrequirements,areentitledtoaperiodofpreferentialtaxratesstartingfromthefirstprofitableyearbefore31December2019.Theyareexemptfromcorporateincometaxinthefirstandsecondyears,andforthenextthreeyearstilltheexpirationofthisperiod,thecorporateincometaxrateishalfofthestatutoryrateof25%.TheCompany'ssubsidiaryYouzhihuienjoysthepreferentialpolicies,anda0%incometaxrateisapplicableduringthereportingperiod.
VI.NotesonMajorItemsinConsolidatedFinancialStatementsoftheCompanyUnlessotherwisenoted,thefollowingannotationproject(includingthemainprojects，annotationofthefinancialstatementoftheCompany),theperiod-beginrefersto1January2020,theperiod-endrefersto31December2020,thisperiodreferstoY2020andthelastperiodreferstotheperiodfrom1January2019to31December2019.ThemonetaryunitisRenminbi.
1.MonetaryAssets
| Item | Endingbalance | Beginningbalance |
| Cashonhand | 16,052.88 | 18,699.99 |
| Bankdeposits | 4,298,040,060.36 | 4,493,683,217.23 |
| Othermonetaryassets | 1,133,474,067.66 | 2,105,658,134.39 |
| Total | 5,431,530,180.90 | 6,599,360,051.61 |
| Ofwhich:totalamountdepositedinoverseas | 202,052,024.94 | 378,330,661.32 |
Note:Theendingbalanceofothermonetaryassetswasthedepositsofeachmargindepositnotwithdrawnatanytime.RefertoNoteVI-64Assetswithrestrictedownershiporuserightfordetails.
2.Tradingfinancialassets
| Item | Endingbalance | Beginningbalance |
| Financialassetsatfairvaluethroughprofitorloss | 618,249,541.66 | 61,494,666.97 |
| Ofwhich:debtinstrumentinvestment | ||
| Equityinstrumentinvestment | 61,494,666.97 | |
| Structuraldeposits | 618,249,541.66 | |
| Financialassetsatfairvaluethroughprofitorloss | ||
| Ofwhich:debtinstrumentinvestment | ||
| Hybridinstrumentinvestment | ||
| Total | 618,249,541.66 | 61,494,666.97 |
3.Notesreceivable
(1)NotesReceivableListedbyCategory
| Item | Endingbalance | Beginningbalance |
NotestotheFinancialStatementsofKonkaGroupCo.,Ltd.
FortheYearfrom1January2020to31December2020(allamountsinRMByuanunlessotherwisestated)
| Item | Endingbalance | Beginningbalance |
| Commercialacceptancebill | 1,012,776,099.43 | 199,412,421.02 |
| Bank’sacceptancebill | 1,345,404,094.53 | 2,638,629,011.87 |
| Total | 2,358,180,193.96 | 2,838,041,432.89 |
(2)NotesReceivablePledgedbytheCompanyatthePeriod-end
| Item | Amount |
| Bank’sacceptancebill | 784,732,739.73 |
| Total | 784,732,739.73 |
(3)NotesReceivablewhichHadEndorsedbytheCompanyorhadDiscountedandhadnotDueontheBalanceSheetDateatthePeriod-end
| Item | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bank’sacceptancebill | 1,281,660,058.38 | |
| Commercialacceptancebill | 9,137,006.26 | 432,420,000.00 |
| Total | 1,290,797,064.64 | 432,420,000.00 |
(4)NotesTransferredtoAccountsReceivablebecauseDraweroftheNotesFailedtoExecutetheContractorAgreement
| Item | Amountofthenotestransferredtoaccountsreceivableattheperiod-end |
| Bank’sacceptancebill | 200,000,000.00 |
| Commercialacceptancebill | 747,821,940.14 |
| Total | 947,821,940.14 |
Note:Attheendoftheyear,thenotestransferredtotheaccountsreceivablemainlyduetothedrawer'sfailuretoperformaretheoverduenotesfortheCompany'sfactoringbusiness.
(5)ListedbyWithdrawalMethodsforBadDebtProvision
| Category | Endingbalance |
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Provisionforbaddebtsprovidedindividually | |||||
| Baddebtprovisionmadeasperportfolio | 2,387,417,262.59 | 100.00 | 29,237,068.63 | 1.22 | 2,358,180,193.96 |
| Ofwhich:Bankacceptancebill | 1,345,404,094.53 | 56.35 | - | 1,345,404,094.53 | |
| Commercialacceptancebill | 1,042,013,168.06 | 43.65 | 29,237,068.63 | 2.81 | 1,012,776,099.43 |
| Total | 2,387,417,262.59 | 100.00 | 29,237,068.63 | 1.22 | 2,358,180,193.96 |
(Continued)
| Category | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Provisionforbaddebtsprovidedindividually | |||||
| Baddebtprovisionmadeasperportfolio | 2,842,347,510.24 | 100.00 | 4,306,077.35 | 0.15 | 2,838,041,432.89 |
| Ofwhich:Bankacceptancebill | 2,638,629,011.87 | 92.83 | 2,638,629,011.87 | ||
| Commercialacceptancebill | 203,718,498.37 | 7.17 | 4,306,077.35 | 2.11 | 199,412,421.02 |
| Total | 2,842,347,510.24 | 100.00 | 4,306,077.35 | 0.15 | 2,838,041,432.89 |
1)Inthegroup,notesreceivable,forwhichtheprovisionforexpectedcreditlosswasmadeaccordingtotradeacceptance
| Name | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion(%) | |
| Within1year | 1,042,013,168.06 | 29,237,068.63 | 2.81 |
| Total | 1,042,013,168.06 | 29,237,068.63 | 2.81 |
(6)Baddebtprovisionfornotesreceivablewithdrawn,collectedorreversedduringtheReportingPeriod
| Category | Beginningbalance | Changedamount | Endingbalance | ||
| Withdrawal | Collectedorreversed | Write-offorverified | |||
| Commercialacceptancebill | 4,306,077.35 | 24,930,991.28 | 29,237,068.63 | ||
| Total | 4,306,077.35 | 24,930,991.28 | 29,237,068.63 | ||
(7)Thereisnonotesreceivableactuallywrittenoffinthecurrentyear.Thereisnonotesreceivableactuallywrittenoffinthecurrentyear.
4.AccountsReceivable
(1)ListedbyWithdrawalMethodsforExpectedCreditLoss
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Accountsreceivable,forwhichtheindependentprovisionforexpectedcredit | 1,384,462,893.38 | 27.50 | 750,096,749.22 | 54.18 | 634,366,144.16 |
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| losses | |||||
| Accountsreceivable,forwhichtheprovisionforexpectedcreditlosseswaswithdrawnaccordingtogroups | |||||
| Ofwhich:aginggroup | 3,004,054,396.28 | 59.66 | 271,291,702.62 | 9.03 | 2,732,762,693.66 |
| Projectpaymentgroup | 646,556,634.10 | 12.84 | 112,787,848.33 | 17.44 | 533,768,785.77 |
| Subtotalofgroups | 3,650,611,030.38 | 72.50 | 384,079,550.95 | 10.52 | 3,266,531,479.43 |
| Total | 5,035,073,923.76 | 100.00 | 1,134,176,300.17 | 22.53 | 3,900,897,623.59 |
(Continued)
| Category | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Accountsreceivable,forwhichtheindependentprovisionforexpectedcreditlosses | 1,093,505,612.71 | 24.31 | 384,089,197.98 | 35.12 | 709,416,414.73 |
| Accountsreceivable,forwhichtheprovisionforexpectedcreditlosseswaswithdrawn | |||||
| Category | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| accordingtogroups | |||||
| Ofwhich:aginggroup | 2,820,178,866.87 | 62.69 | 236,910,263.28 | 8.40 | 2,583,268,603.59 |
| Projectpaymentgroup | 584,680,503.88 | 13.00 | 73,025,879.05 | 12.49 | 511,654,624.83 |
| Subtotalofgroups | 3,404,859,370.75 | 75.69 | 309,936,142.33 | 9.10 | 3,094,923,228.42 |
| Total | 4,498,364,983.46 | 100.00 | 694,025,340.31 | 15.43 | 3,804,339,643.15 |
1)Accountsreceivable,forwhich,theindependentprovisionforexpectedcreditlossismadeattheperiod-end
| Name | Endingbalance | |||
| Carryingamount | Baddebtprovision | Withdrawalproportion(%) | Withdrawalreason | |
| ShanghaiHuaxinInternationalGroupCo.,Ltd | 300,018,021.01 | 240,014,416.81 | 80.00 | Debtdefault |
| TewooFinanceCompanyLimited | 200,000,000.00 | 90,000,000.00 | 45.00 | Judicialreorganization |
| HongtuSanbaoHigh-techTechnologyCo.,Ltd. | 200,000,000.00 | 80,000,000.00 | 40.00 | Agreementreorganization |
| ChinaNuclearEngineeringConstructionGroupCo.,Ltd | 74,582,619.13 | 22,374,785.74 | 30.00 | Increasedcreditrisk |
| No.1EngineeringCompanyLimitedofCCCCFirstHarborEngineeringCompanyLimited | 65,221,300.00 | 58,699,170.00 | 90.00 | Expectedtobedifficulttorecoverinfull |
| ChinaEnergyElectricFuelCo.,Ltd | 50,000,000.00 | 40,000,000.00 | 80.00 | Expectedtobedifficulttorecoverinfull |
| TahoeGroupCo.Ltd | 50,000,000.00 | 20,000,000.00 | 40.00 | Debtreorganization |
| EmpireElectronicCorp | 42,472,943.03 | 42,472,943.03 | 100.00 | Long-termcollectionand |
| Name | Endingbalance | |||
| Carryingamount | Baddebtprovision | Withdrawalproportion(%) | Withdrawalreason | |
| cannotberecovered | ||||
| H-BUSTERDOBRASILINDUSTRIA | 17,945,518.46 | 17,945,518.46 | 100.00 | Thecounterpartyisbankruptandisexpectedtobedifficulttorecoverinfull |
| TreeviewBusinessRegistration | 11,648,757.09 | 11,648,757.09 | 100.00 | Expectedtobedifficulttorecoverinfull |
| Others | 372,573,734.66 | 126,941,158.09 | 34.07 | Expectedtobedifficulttorecoverinfull |
| Total | 1,384,462,893.38 | 750,096,749.22 | 54.18 | |
2)Accountsreceivable,forwhichtheprovisionforexpectedcreditlosseswaswithdrawnaccordingtogroups
①Inthegroup,accountsreceivable,forwhich,theprovisionforexpectedcreditlosswasmadeaccordingtoaginggroups
| Aging | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion(%) | |
| Within1year | 2,367,338,511.72 | 48,308,043.50 | 2.04 |
| 1to2years | 398,076,018.92 | 39,887,371.88 | 10.02 |
| 2-3years | 70,778,770.88 | 16,059,703.12 | 22.69 |
| 3-4years | 2,347,695.43 | 1,523,184.79 | 64.88 |
| Over4years | 165,513,399.33 | 165,513,399.33 | 100.00 |
| Total | 3,004,054,396.28 | 271,291,702.62 | 9.03 |
②Inthegroup,accountsreceivable,forwhich,theprovisionforexpectedcreditlosswasmadeaccordingtoprojectpaymentgroups
| Aging | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion(%) | |
| Within1year | 260,870,171.57 | 13,043,508.53 | 5.00 |
| 1to2years | 205,103,789.51 | 20,510,378.97 | 10.00 |
| 2-3years | 88,692,660.55 | 26,607,798.16 | 30.00 |
| 3-4years | 78,263,538.63 | 39,131,769.32 | 50.00 |
| Over4years | 13,626,473.84 | 13,494,393.35 | 99.03 |
| Total | 646,556,634.10 | 112,787,848.33 | 17.44 |
(2)AccountsReceivableListedbyAging
| Aging | Endingbalance |
| Within1year | 2,630,187,591.95 |
| 1to2years | 1,209,886,791.32 |
| 2-3years | 843,078,575.90 |
| 3-4years | 132,412,306.63 |
| Over4years | 219,508,657.96 |
| Subtotal | 5,035,073,923.76 |
| Less:provisionforbaddebts | 1,134,176,300.17 |
| Total | 3,900,897,623.59 |
(3)BaddebtprovisionforaccountsreceivableduringtheReportingPeriod
| Category | Beginningbalance | Changedamount | Endingbalance | |||
| Withdrawal | Collectedorreversed | Write-offorverified | Decreaseforotherreasons | |||
| Baddebtprovisionofaccountsreceivable | 694,025,340.31 | 444,069,685.68 | 3,918,725.82 | 1,134,176,300.17 | ||
| Total | 694,025,340.31 | 444,069,685.68 | 3,918,725.82 | 1,134,176,300.17 | ||
(4)AccountsreceivableactuallyverifiedduringtheReportingPeriod
NotestotheFinancialStatementsofKonkaGroupCo.,Ltd.
FortheYearfrom1January2020to31December2020(allamountsinRMByuanunlessotherwisestated)
TherewerenoaccountsreceivableactuallyverifiedduringtheReportingPeriod
(5)Top5oftheEndingBalanceoftheAccountsReceivableCollectedaccordingtotheArrearsPartyThetotalamountoftopfiveofaccountreceivableofendingbalancecollectedbyarrearspartywasRMB1,149,826,053.99,accountingfor22.84%oftotalclosingbalanceofaccountreceivable,therelevantendingbalanceofbaddebtprovisionwithdrawnwasRMB421,959,487.71.
(6)Therewasnoaccountsreceivablederecognizedfortransferoffinancialassets.
(7)Thereisnoamountofassetsandliabilitiesformedduetothetransferofaccountsreceivableandcontinuedinvolvementinthisyear.
5.AccountsReceivableFinancing
| Item | Endingbalance | Beginningbalance |
| NotesReceivable | 84,057,197.44 | 143,174,271.82 |
| Total | 84,057,197.44 | 143,174,271.82 |
Note:AccountsreceivablefinancingisthebankacceptancesofhighercreditratingheldbytheCompany,whichaimatbothcollectingcontractcashandsellingthefinancialassetsthemselves.
6.Prepayments
(1)Ageofadvancestosuppliers
| Item | Endingbalance | Beginningbalance | ||
| Amount | Proportion(%) | Amount | Proportion(%) | |
| Within1year | 1,166,762,930.75 | 98.60 | 2,059,939,470.32 | 99.39 |
| 1to2years | 14,282,024.18 | 1.21 | 8,056,998.90 | 0.39 |
| 2-3years | 733,390.33 | 0.06 | 4,074,992.31 | 0.20 |
| Over3years | 1,492,198.15 | 0.13 | 479,350.33 | 0.02 |
| Total | 1,183,270,543.41 | 100.00 | 2,072,550,811.86 | 100.00 |
Note:TheamountofprepaymentsagedoveroneyearattheendoftheperiodisRMB
16,507,612.66,accountingfor1.40%ofthetotalbalanceofprepaymentsoftheCompany,andconsistsmainlyofpaymentsforgoodsafloatorunsettledpayments.
(2)AdvancestosuppliersfromtopfiveprepaidpartiesclassifiedbasedontheendingbalanceThesumtotalofprepaymentswithtopfiveendingbalancecollectedaspertheprepaidpartyisRMB656,765,428.07,andtheproportionintotalendingbalanceofpaymentsis55.50%.
7.Otherreceivables
| Item | Endingbalance | Beginningbalance |
| Interestreceivable | 45,109,425.85 | 7,807,400.40 |
| Dividendsreceivable | 4,947,848.62 | 547,848.62 |
| OtherReceivables | 2,095,679,366.13 | 1,763,828,117.47 |
| Total | 2,145,736,640.60 | 1,772,183,366.49 |
7.1Interestreceivable
| Item | Endingbalance | Beginningbalance |
| Fixtimedeposit | 10,235,673.76 | 4,807,630.04 |
| Entrustedloans | 34,303,196.21 | 2,623,723.82 |
| Factoringincome | 570,555.88 | 376,046.54 |
| Total | 45,109,425.85 | 7,807,400.40 |
7.2Dividendsreceivable
| Investee | Endingbalance | Beginningbalance |
| ChongqingQingjiaElectronicCo.,Ltd. | 547,848.62 | 547,848.62 |
| BinzhouBeihaiWeiqiaoSolidWasteTreatmentCo.,Ltd. | 4,400,000.00 | |
| Total | 4,947,848.62 | 547,848.62 |
7.3Otherreceivables
(1)ClassifiedbyAccountNature
| Item | Endingbalance | Beginningbalance |
| Deposit,Deposit,Deposit | 1,642,180,460.58 | 1,307,226,302.83 |
| Intercoursefundsamongminorityshareholdersinthebusinessconsolidationnotunderthesamecontrolandrelatedparties | 176,427,511.36 | 178,968,748.99 |
| Energy-savingsubsidies | 152,399,342.00 | 152,402,680.00 |
| Disposalofnon-currentassets | 132,331,700.00 | 147,256,700.00 |
| Others | 638,804,307.66 | 376,824,887.60 |
| Total | 2,742,143,321.60 | 2,162,679,319.42 |
Note:Theincreaseinotherreceivableswasmainlyduetotheincreaseinthecompany'sprepaiddeposits,securitydepositsanddeposits
(2)WithdrawalofBadDebtProvision
| Baddebtprovision | PhaseI | PhaseII | PhaseIII | Total |
| Expectedcreditlossesoverthenext12months | Expectedcreditlossesfortheentireduration(nocreditimpairment) | Expectedcreditlossesfortheentireduration(withcreditimpairment) | ||
| Balanceasat1January2020 | 15,229,049.09 | 25,449,941.31 | 358,172,211.55 | 398,851,201.95 |
| IntheReportingPeriod,Carryingamountofotherreceivableson1January2020: | ||||
| ——TransferredtothePhaseII | -5,051,195.62 | 5,051,195.62 | ||
| ——TransferredtothePhaseIII | -610.58 | -4,636,617.84 | 4,637,228.42 | |
| ——TransferredbacktothePhaseII | ||||
| ——TransferredbacktothePhaseI |
| Baddebtprovision | PhaseI | PhaseII | PhaseIII | Total |
| Expectedcreditlossesoverthenext12months | Expectedcreditlossesfortheentireduration(nocreditimpairment) | Expectedcreditlossesfortheentireduration(withcreditimpairment) | ||
| Provisionmadeinthecurrentyear | 9,478,513.76 | 34,375,867.10 | 214,401,463.63 | 258,255,844.49 |
| Amounttransferredbackinthecurrentyear | ||||
| Write-off | ||||
| Verification | 153,528.90 | 13,396,856.82 | 13,550,385.72 | |
| Otherchanges | 2,907,294.75 | 2,907,294.75 | ||
| BalanceasatDecember31,2020 | 22,563,051.40 | 60,086,857.29 | 563,814,046.78 | 646,463,955.47 |
Note:Thefirststageisthatcreditriskhasnotincreasedsignificantlysinceinitialrecognition.Forotherreceivableswithanagingportfolioandalow-riskportfoliowithin1year,thelossprovisionismeasuredaccordingtotheexpectedcreditlossesinthenext12months.Thesecondstageisthatcreditriskhasincreasedsignificantlysinceinitialrecognitionbutcreditimpairmenthasnotyetoccurred.Forotherreceivableswithanagingportfolioandalow-riskportfoliothatexceed1year,thelossprovisionismeasuredbasedontheexpectedcreditlossesfortheentireduration.Thethirdstageisthecreditimpairmentafterinitialconfirmation.Forotherreceivablesofcreditimpairmentthathaveoccurred,thelossprovisionismeasuredaccordingtothecreditlossesthathaveoccurredthroughouttheduration.
(3)Withdrawingbaddebtprovisionforotherreceivablesaccordingtogroup
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion | ||
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion | ||
| Otherreceivableswithsignificantindividualamountandmakeindependentprovisionforexpectedcreditloss | 1,177,068,758.61 | 42.93 | 563,814,046.78 | 47.90 | 613,254,711.83 |
| Otherreceivableswithdrawnbaddebtprovisionaccordingtocreditriskscharacteristics | |||||
| Aginggroup | 1,327,676,325.32 | 48.42 | 73,662,861.99 | 5.55 | 1,254,013,463.33 |
| Low-riskgroup | 237,398,237.67 | 8.66 | 8,987,046.70 | 3.79 | 228,411,190.97 |
| Subtotalofgroups | 1,565,074,562.99 | 57.07 | 82,649,908.69 | 5.28 | 1,482,424,654.30 |
| Total | 2,742,143,321.60 | 100.00 | 646,463,955.47 | 23.58 | 2,095,679,366.13 |
(Continued)
| Category | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion | ||
| Otherreceivableswithsignificantindividualamountandmakeindependentprovisionforexpectedcreditloss | 1,093,025,247.42 | 50.54 | 358,172,211.55 | 32.77 | 734,853,035.87 |
| Otherreceivableswithdrawnbaddebtprovisionaccordingtocreditriskscharacteristics | |||||
| Aginggroup | 598,266,705.02 | 27.66 | 30,392,763.59 | 5.08 | 567,873,941.43 |
| Low-riskgroup | 471,387,366.98 | 21.80 | 10,286,226.81 | 2.18 | 461,101,140.17 |
| Subtotalofgroups | 1,069,654,072.00 | 49.46 | 40,678,990.40 | 3.80 | 1,028,975,081.60 |
| Total | 2,162,679,319.42 | 100.00 | 398,851,201.95 | 18.44 | 1,763,828,117.47 |
(4)Listedbyaging
| Aging | Endingbalance |
| Within1year | 1,195,007,839.77 |
| 1to2years | 1,242,762,406.26 |
| 2-3years | 88,143,690.71 |
| 3-4years | 3,044,773.36 |
| 4-5years | 5,250,275.90 |
| Over5years | 207,934,335.60 |
| Subtotal | 2,742,143,321.60 |
| Less:baddebtprovision | 646,463,955.47 |
| Total | 2,095,679,366.13 |
(5)BadDebtProvisionforOtherReceivablesTheamountofbaddebtprovisionforthisyearwasRMB258,255,844.49,whichwasmainlyduetotheabnormaloperationofthesupplierofthesubsidiaryKonkaHuanjia,whichcouldnotbedeliverednormallyorrefundedtheprepaiddepositintheshortterm.Withdrawalofexpectedcreditlosses;theamountincreasedforreclassificationwasRMB2,958,848.86,whichwasreducedbyRMB32,134.35duetolossofcontrolofthesubsidiary,reducedbyRMB424.88duetocombinationandreducedbyRMB18,994.88duetoexchangeratechanges.OtherreceivablesactuallywrittenoffinthecurrentperiodareRMB13,550,385.72.
(6)Top5OtherReceivablesinEndingBalanceCollectedaccordingtotheArrearsPartyThetotalamountoftopfiveofaccountreceivableofendingbalancecollectedbyarrearspartywasRMB1,073,172,589.0,accountingfor39.14%oftotalclosingbalanceofotherreceivables,therelevantendingbalanceofbaddebtprovisionwithdrawnwasRMB177,635,416.69.
(7)TherewerenootherreceivablesderecognizedduetotransferoffinancialassetsduringtheReportingPeriod.
(8)Therewerenoassetsandliabilitiesformedbytransferringotherreceivablesandcontinuingtobeinvolvedinthisperiod.
8.Inventories
(1)CategoryofInventory
| Item | Endingbalance | ||
| Carryingamount | Inventoryfallingpricereserves/impairmentprovisionofcontractperformancecosts | Carryingvalue | |
| Rawmaterials | 1,239,024,415.74 | 28,137,287.12 | 1,210,887,128.62 |
| Consignedprocessingmaterials | 7,697,008.23 | 7,697,008.23 | |
| Semi-finishedproduct | 158,870,091.24 | 12,636,819.92 | 146,233,271.32 |
| Inventorygoods | 3,389,343,445.93 | 249,362,200.01 | 3,139,981,245.92 |
| Contractperformancecosts | 16,502,023.32 | 16,502,023.32 | |
| Total | 4,811,436,984.46 | 290,136,307.05 | 4,521,300,677.41 |
(Continued)
| Item | Beginningbalance | ||
| Carryingamount | Inventoryfallingpricereserves/impairmentprovisionofcontractperformancecosts | Carryingvalue | |
| Rawmaterials | 1,275,228,321.83 | 27,122,457.46 | 1,248,105,864.37 |
| Consignedprocessingmaterials | 3,117,408.28 | 3,117,408.28 | |
| Semi-finishedproduct | 85,821,719.87 | 12,822,030.37 | 72,999,689.50 |
| Inventorygoods | 4,176,189,636.39 | 206,509,288.73 | 3,969,680,347.66 |
| Item | Beginningbalance | ||
| Carryingamount | Inventoryfallingpricereserves/impairmentprovisionofcontractperformancecosts | Carryingvalue | |
| Contractperformancecosts | 13,594,131.07 | 13,594,131.07 | |
| Total | 5,553,951,217.44 | 246,453,776.56 | 5,307,497,440.88 |
(2)Inventoryfallingpricereservesandimpairmentprovisionofcontractperformancecosts
| Item | Beginningbalance | Increased | Decreased | Endingbalance | |
| Withdrawal | Write-off | Decreasebylosingcontrollingright/otherreasons | |||
| Rawmaterials | 27,122,457.46 | 10,779,703.98 | 9,757,538.73 | 7,335.59 | 28,137,287.12 |
| Goodsinprocess | 12,822,030.37 | 931,646.86 | 1,116,857.31 | 12,636,819.92 | |
| Inventorygoods | 206,509,288.73 | 161,101,275.37 | 117,810,721.29 | 437,642.80 | 249,362,200.01 |
| Total | 246,453,776.56 | 172,812,626.21 | 128,685,117.33 | 444,978.39 | 290,136,307.05 |
（
）WithdrawalProvisionBasisoftheFallingPriceoftheInventoryandtheReasonsoftheReversedorWrite-off.
| Item | Specificbasisofwithdrawaloffallingpricereservesofinventory | Reasonsforwrite-off |
| Rawmaterials | Therealizablenetvaluewaslowerthanthecarryingvalue | Soldordisposedinthecurrentperiod |
| Semi-finishedproduct | Therealizablenetvaluewaslowerthanthecarryingvalue | Soldordisposedinthecurrentperiod |
| Inventorygoods | Therealizablenetvaluewaslowerthanthecarryingvalue | Soldinthecurrentperiod |
NotestotheFinancialStatementsofKonkaGroupCo.,Ltd.
FortheYearfrom1January2020to31December2020(allamountsinRMByuanunlessotherwisestated)
9.Contractualassets
(1)Detailsofcontractualassets
| Item | Endingbalance | ||
| Carryingamount | Impairmentprovision | Carryingvalue | |
| Accountsreceivablefromsettledbutconditionalpaymentprojects | 3,002,127,112.18 | 180,488,971.89 | 2,821,638,140.29 |
| Unsettledadvertisingpayments | 49,375,837.18 | 1,007,267.08 | 48,368,570.10 |
| Total | 3,051,502,949.36 | 181,496,238.97 | 2,870,006,710.39 |
(Continued)
| Item | Beginningbalance | ||
| Carryingamount | Impairmentprovision | Carryingvalue | |
| Accountsreceivablefromsettledbutconditionalpaymentprojects | 649,732,956.12 | 34,414,475.87 | 615,318,480.25 |
| Unsettledadvertisingpayments | 13,522,835.74 | 274,500.00 | 13,248,335.74 |
| Total | 663,255,791.86 | 34,688,975.87 | 628,566,815.99 |
(2)Amountandreasonofsignificantchangeinthebookvalueofthecontractualassetsinthecurrentyear
| Item | Amountchanged | CausesoftheChange |
| Accountsreceivablefromsettledbutconditionalpaymentprojects | 2,206,319,660.04 | Newengineeringprojects |
| Total | 2,206,319,660.04 |
(3)Makingforimpairmentprovisionofcontractualassetsinthecurrentyear
| Item | Provisionmadeinthecurrentyear | Amounttransferredbackinthecurrentyear | Write-off/Verificationinthecurrentyear | Reasons |
| Accountsreceivablefromsettledbutconditionalpaymentprojects | 146,074,496.02 | Theexpectedcreditlossisgreaterthanthebookvalueofthecurrentcontractassetimpairmentprovision | ||
| Unsettledadvertisingpayments | 732,767.08 | Theexpectedcreditlossisgreaterthanthebookvalueofthecurrentcontractassetimpairmentprovision | ||
| Total | 146,807,263.10 |
10.CurrentPortionofNon-currentAssets
| Item | Endingbalance | Beginningbalance | Nature |
| Currentportionofdebtinvestment | 75,000,000.00 | 60,000,000.00 | Entrustedloansforassociatedenterprises |
| Currentportionoflong-termreceivable | 37,310,158.82 | 48,087,016.22 | Financeleasingamount |
| Total | 112,310,158.82 | 108,087,016.22 |
(1)Significantdebtinvestment/otherdebtinvestmentattheyearend
| Debtinvestmentin | Endingbalance | |||
| Parvalue | Couponrate | Actualrate | ExpiryDate | |
| Debtinvestmentin | Endingbalance | |||
| Parvalue | Couponrate | Actualrate | ExpiryDate | |
| YibinOCTSanjiangRealestateCo.Ltd. | 35,000,000.00 | 5.70% | 5.70% | 2021/4/24 |
| YibinOCTSanjiangRealestateCo.Ltd. | 40,000,000.00 | 5.70% | 5.70% | 2021/10/24 |
| Total | 75,000,000.00 | |||
(Continued)
| Debtinvestmentin | Beginningbalance | |||
| Parvalue | Couponrate | Actualrate | ExpiryDate | |
| YibinOCTSanjiangRealestateCo.Ltd. | 60,000,000.00 | 5.70% | 5.70% | 2020/4/24 |
| Total | 60,000,000.00 | |||
11.OtherCurrentAssets
| Item | Endingbalance | Beginningbalance |
| Prepaymentsanddeductibletaxes,andrefundoftaxforexportreceivable | 926,643,711.18 | 598,034,887.02 |
| Principalofentrustedloanstojointventures | 826,684,400.00 | 1,323,295,500.40 |
| Temporarydifferenceofinputtax | 148,183,307.23 | 134,571,124.94 |
| Receivablesfromsalesreturnsnetofcost | 7,458,293.85 | 11,005,603.81 |
| Others | 4,176,771.13 | 37,311,039.89 |
| Total | 1,913,146,483.39 | 2,104,218,156.06 |
12.Long-termReceivables
(1)ListofLong-termReceivables
| Item | Endingbalance | ||
| Carryingamount | Baddebtprovision | Carryingvalue | |
| Financeleasingamount | 44,609,921.40 | 44,609,921.40 | |
| Ofwhich:unrealizedfinancingincome | 2,526,836.56 | 2,526,836.56 | |
| Item | Endingbalance | ||
| Carryingamount | Baddebtprovision | Carryingvalue | |
| Cashdepositsoflong-termreceivables | 41,090,400.00 | 41,090,400.00 | |
| Long-termreceivablesofprojectswithfranchisetights | 351,107,041.45 | 351,107,041.45 | |
| Less:Currentportionoflong-termreceivableSeeNoteVI.10fordetails) | 37,310,158.82 | 37,310,158.82 | |
| Total | 399,497,204.03 | 399,497,204.03 | |
(Continued)
| Item | Beginningbalance | ||
| Carryingamount | Baddebtprovision | Carryingvalue | |
| Financeleasingamount | 77,783,250.17 | 77,783,250.17 | |
| Ofwhich:unrealizedfinancingincome | 9,635,891.82 | 9,635,891.82 | |
| Cashdepositsoflong-termreceivables | 28,951,495.81 | 28,951,495.81 | |
| Long-termreceivablesofprojectswithfranchisetights | 351,861,826.09 | 351,861,826.09 | |
| Less:Currentportionoflong-termreceivableSeeNoteVI.10fordetails) | 48,087,016.22 | 48,087,016.22 | |
| Total | 410,509,555.85 | 410,509,555.85 | |
(2)ListofProjectswithFranchiseRights
| Item | Type | Projectscale | Franchiserights | Dateofcontract | Operation |
| PPPProjectofwatersupplyandsewageRushanSilverBeach | PPP | 452,802,100.00 | Rightofchargeforsewagedisposal | July2016 | Partialtrialoperation |
(3)ChangesinLong-termReceivablesofProjectswithFranchiseRights
| Item | Initialinvested | Beginning | Decreased | Endingbalance |
| amount | balance | Principalrecover | Otherdecrease | ||
| PPPProjectofwatersupplyandsewageRushanSilverBeach | 351,107,041.45 | 351,861,826.09 | 754,784.64 | 351,107,041.45 | |
| Total | 351,107,041.45 | 351,861,826.09 | 754,784.64 | 351,107,041.45 |
13.Long-termEquityInvestment
| Investee | Beginningbalance | ChangeintheCurrentPeriod | ||||
| Newinvestment | Investmentreduced | Costmethodtoequitymethod | Gain/lossrecognizedatequitymethod | Adjustmenttoothercomprehensiveincome | ||
| KonkaVenturesDevelopment(Shenzhen)Co.,Ltd. | 2,354,141.80 | -103,551.80 | ||||
| NanjingZhihuiguangInformationTechnologyResearchInstituteCo.,Ltd. | 1,446,968.41 | 126,862.82 | ||||
| FeideTechnology(Shenzhen)Co.,Ltd. | 14,314,621.68 | -3,642,635.23 | ||||
| ShenzhenKangyueIndustrialCo.,Ltd. | 33,856,942.00 | -709,987.58 | ||||
| FoshanPearlRiverMediaCreativeParkCulturalDevelopmentCo.,Ltd. | 4,900,000.00 | |||||
| ShenzhenKonkaCross-BorderTechnologicalInnovationServiceCo.,Ltd. | 19,020.00 | |||||
| ChengduKonkaIncubatorManagementCo.,Ltd. | 254,670.00 | |||||
| DongguanKonkaSmartElectronicTechnologyCo.,Ltd. | 14,700,000.00 | 1,472,903.60 | ||||
| PuchuangJiakangTechnologyCo.,Ltd. | 400,000.00 | 999,457.69 | ||||
| GuoguangRuilian(Shenzhen)NetworkTechnologyCo.,Ltd. | 192,323.20 | -140,359.11 | ||||
| Investee | Beginningbalance | ChangeintheCurrentPeriod | ||||
| Newinvestment | Investmentreduced | Costmethodtoequitymethod | Gain/lossrecognizedatequitymethod | Adjustmenttoothercomprehensiveincome | ||
| KhorgosYilingfangInformationTechnologyCo.,Ltd. | 1,795.48 | |||||
| ChongqingQingjiaElectronicCo.,Ltd. | 19,168,701.08 | -367,047.24 | ||||
| ShenzhenJielunteTechnologyCo.,Ltd. | 85,665,123.77 | 3,522,781.63 | ||||
| PanxuIntelligenceCo.,Ltd. | 51,084,991.78 | -1,867,032.63 | 1,486,737.16 | |||
| BeijingKonkaJingyuanTechnologyCo.,Ltd. | 763,492.84 | 2,798.13 | ||||
| DongfangJiahui(Zhuhai)AssetManagementCo.,Ltd. | 2,978,676.27 | 49,295.23 | ||||
| OrientKonkano.1(zhuhai)privateequityinvestmentfund(limitedpartnership) | 310,024,401.51 | 76,183,020.50 | 100,905,698.76 | 50,868,896.59 | ||
| TongxiangWuzhenKunyuEquityInvestmentCo.,Ltd. | - | 3,500,000.00 | - | |||
| ShenzhenXiaoruiTechnologyCo.,Ltd. | 88,000,000.00 | -9,884,863.61 | ||||
| WeihaiWaterEnvironmentalProtectionTechnologyCo.,Ltd. | 2,493,211.96 | 33,271.19 | ||||
| WeihaiYihengEnvironmentalTechnologyCo.,Ltd. | 4,668,292.89 | 144,337.36 | ||||
| HuoqiuKangrunKaitianWater | 32,434,987.50 | 20,000,000.00 | - | |||
| Investee | Beginningbalance | ChangeintheCurrentPeriod | ||||
| Newinvestment | Investmentreduced | Costmethodtoequitymethod | Gain/lossrecognizedatequitymethod | Adjustmenttoothercomprehensiveincome | ||
| EnvironmentalProtectionCo.,Ltd. | ||||||
| HuarunEnvironmentalProtectionWaterTreatmentCo.,Ltd. | 16,018,870.31 | 1,297,571.97 | ||||
| BinzhouBeihaiWeiqiaoSolidWasteTreatmentCo.,Ltd. | 133,633,089.95 | 63,732,938.30 | ||||
| ShandongBishuiyuanEnvironmentalTechnologyCo.,Ltd. | 26,174,621.66 | 215,816.32 | ||||
| YunnanHongkangSolidWasteDisposalUtilizationCo.,Ltd. | 2,880,000.00 | -70,224.87 | ||||
| ShandongKonkaZhijiaElectricalAppliancesCo.,Ltd. | 4,052,660.23 | -1,904,596.76 | ||||
| HenanKonkaZhijiaElectricalAppliancesCo.,Ltd. | 709,634.82 | 918,000.00 | -568,497.48 | |||
| AnhuiKaikaishijieE-commerceCo.,Ltd. | 424,850,308.67 | -5,785,276.34 | ||||
| WanjunTechnology(Kunshan)Co.,Ltd. | 182,413,766.51 | -7,209,123.66 | ||||
| KunshanKangshengInvestmentDevelopmentCo.,Ltd. | 269,673,264.00 | - | ||||
| ChutianlongCo.,Ltd. | 636,061,636.70 | 23,385,170.32 | ||||
| HeilongjiangLongkangZhijia | 2,380,000.00 | -1,319,274.21 | ||||
NotestotheFinancialStatementsofKonkaGroupCo.,Ltd.
FortheYearfrom1January2020to31December2020(allamountsinRMByuanunlessotherwisestated)
| Investee | Beginningbalance | ChangeintheCurrentPeriod | ||||
| Newinvestment | Investmentreduced | Costmethodtoequitymethod | Gain/lossrecognizedatequitymethod | Adjustmenttoothercomprehensiveincome | ||
| TechnologyCo.,Ltd. | ||||||
| KonkaGreen,KonkaTechnology | 77,342,419.36 | -2,081,114.80 | ||||
| ShaanxiSiluYunqiSmartTechnologyCo.,Ltd. | 17,202,315.43 | 446,980.38 | ||||
| ShenzhenKonkaInformationNetworkCo.,Ltd. | ||||||
| ShenzhenZhongbingKonkaTechnologyCo.,Ltd. | 7,273,228.41 | -5,058,921.08 | ||||
| ShenzhenKonkaSmartElectricalApplianceTechnologyCo.,Ltd. | 2,882,149.72 | 1,091,237.23 | ||||
| ZhuhaiJinsuPlasticCo.,Ltd. | 10,166,404.14 | - | 10,549,865.19 | - | 383,461.05 | |
| ShenzhenFushengNewMaterialCo.,Ltd. | 73,600,000.00 | -1,884,086.91 | ||||
| ShenzhenYaodeTechnologyCo.,Ltd. | 229,740,245.47 | -10,382,472.71 | ||||
| WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | 275,577,332.21 | 29,076,911.48 | ||||
| ShenzhenKonkaYishijieCommercialDisplayCo.,Ltd. | 84,273,594.93 | -2,317,736.66 | ||||
| ChuzhouKonkaTechnologyIndustryDevelopmentCo.,Ltd. | 61,029,500.00 | -11,371,102.98 | ||||
| Investee | Beginningbalance | ChangeintheCurrentPeriod | ||||
| Newinvestment | Investmentreduced | Costmethodtoequitymethod | Gain/lossrecognizedatequitymethod | Adjustmenttoothercomprehensiveincome | ||
| ChuzhouKangjinHealthcareIndustryDevelopmentCo.,Ltd. | 117,460,056.00 | 662,742.37 | ||||
| HaimenKangjianTechnologyIndustrialParkOperationandManagementCo.,Ltd. | 131,273,550.00 | -10,544,214.33 | ||||
| NanjingKangxingTechnologyIndustrialParkOperationandManagementCo.,Ltd. | 32,305,671.68 | 32,305,671.68 | - | |||
| ChuzhouKangxinHealthcareIndustryDevelopmentCo.,Ltd. | 187,180,000.00 | |||||
| DongguanKonkaInvestmentCo.,Ltd. | 563,500,000.00 | |||||
| ChongqingKonkaRealEstateDevelopmentCo.,Ltd. | 49,500,000.00 | |||||
| ChongqingChengdaRealEstateCo.,Ltd. | 29,205,000.00 | |||||
| Yilifang(Hainan)TechnologyCo.,Ltd. | 53,372,944.09 | 5,342,734.88 | ||||
| ShenzhenMorsemiTechnologyCo.,Ltd. | 3,000,000.00 | -276,313.64 | ||||
| Total | 3,465,541,196.89 | 123,481,020.50 | 143,761,235.63 | 886,031,634.09 | 105,369,530.39 | 1,486,737.16 |
(Continued)
| Investee | ChangeintheCurrentPeriod | Endingbalance | Closingbalanceofimpairmentprovision | |||
| Otherequitychanges | Cashdividendorprofitdistributiondeclared | Impairmentallowance | Others | |||
| KonkaVenturesDevelopment(Shenzhen)Co.,Ltd. | 2,250,590.00 | |||||
| NanjingZhihuiguangInformationTechnologyResearchInstituteCo.,Ltd. | 1,573,831.23 | |||||
| FeideTechnology(Shenzhen)Co.,Ltd. | 10,671,986.45 | |||||
| ShenzhenKangyueIndustrialCo.,Ltd. | 33,146,954.42 | |||||
| FoshanPearlRiverMediaCreativeParkCulturalDevelopmentCo.,Ltd. | 4,900,000.00 | |||||
| ShenzhenKonkaCross-BorderTechnologicalInnovationServiceCo.,Ltd. | 19,020.00 | |||||
| ChengduKonkaIncubatorManagementCo.,Ltd. | 254,670.00 | |||||
| DongguanKonkaSmartElectronicTechnologyCo.,Ltd. | 16,172,903.60 | |||||
| PuchuangJiakangTechnologyCo.,Ltd. | 1,399,457.69 | |||||
| GuoguangRuilian(Shenzhen)NetworkTechnologyCo.,Ltd. | 51,964.09 | 51,964.09 | ||||
| KhorgosYilingfangInformationTechnologyCo.,Ltd. | 1,795.48 | |||||
| ChongqingQingjiaElectronicCo.,Ltd. | 18,801,653.84 | |||||
| Investee | ChangeintheCurrentPeriod | Endingbalance | Closingbalanceofimpairmentprovision | |||
| Otherequitychanges | Cashdividendorprofitdistributiondeclared | Impairmentallowance | Others | |||
| ShenzhenJielunteTechnologyCo.,Ltd. | 89,187,905.40 | |||||
| PanxuIntelligenceCo.,Ltd. | 50,704,696.31 | |||||
| BeijingKonkaJingyuanTechnologyCo.,Ltd. | 766,290.97 | |||||
| DongfangJiahui(Zhuhai)AssetManagementCo.,Ltd. | 3,027,971.50 | |||||
| OrientKonkano.1(zhuhai)privateequityinvestmentfund(limitedpartnership) | 336,170,619.84 | |||||
| TongxiangWuzhenKunyuEquityInvestmentCo.,Ltd. | 3,500,000.00 | |||||
| ShenzhenXiaoruiTechnologyCo.,Ltd. | 25,007,421.57 | 53,107,714.82 | 33,684,243.40 | |||
| WeihaiWaterEnvironmentalProtectionTechnologyCo.,Ltd. | 2,526,483.15 | |||||
| WeihaiYihengEnvironmentalTechnologyCo.,Ltd. | 4,812,630.25 | |||||
| HuoqiuKangrunKaitianWaterEnvironmentalProtectionCo.,Ltd. | 52,434,987.50 | |||||
| HuarunEnvironmentalProtectionWaterTreatmentCo.,Ltd. | 17,316,442.28 | |||||
| BinzhouBeihaiWeiqiaoSolidWaste | 14,700,000.00 | 182,666,028.25 | ||||
| Investee | ChangeintheCurrentPeriod | Endingbalance | Closingbalanceofimpairmentprovision | |||
| Otherequitychanges | Cashdividendorprofitdistributiondeclared | Impairmentallowance | Others | |||
| TreatmentCo.,Ltd. | ||||||
| ShandongBishuiyuanEnvironmentalTechnologyCo.,Ltd. | 26,390,437.98 | |||||
| YunnanHongkangSolidWasteDisposalUtilizationCo.,Ltd. | 2,809,775.13 | |||||
| ShandongKonkaZhijiaElectricalAppliancesCo.,Ltd. | 2,148,063.47 | |||||
| HenanKonkaZhijiaElectricalAppliancesCo.,Ltd. | 1,059,137.34 | |||||
| AnhuiKaikaishijieE-commerceCo.,Ltd. | 419,065,032.33 | |||||
| WanjunTechnology(Kunshan)Co.,Ltd. | 175,204,642.85 | |||||
| KunshanKangshengInvestmentDevelopmentCo.,Ltd. | 269,673,264.00 | |||||
| ChutianlongCo.,Ltd. | 9,240,000.00 | 650,206,807.02 | ||||
| HeilongjiangLongkangZhijiaTechnologyCo.,Ltd. | 1,060,725.79 | 2,470,398.03 | ||||
| KonkaGreen,KonkaTechnology | 75,261,304.56 | |||||
| ShaanxiSiluYunqiSmartTechnologyCo.,Ltd. | 17,649,295.81 | |||||
| ShenzhenKonkaInformationNetwork | 12,660,222.73 | |||||
| Investee | ChangeintheCurrentPeriod | Endingbalance | Closingbalanceofimpairmentprovision | |||
| Otherequitychanges | Cashdividendorprofitdistributiondeclared | Impairmentallowance | Others | |||
| Co.,Ltd. | ||||||
| ShenzhenZhongbingKonkaTechnologyCo.,Ltd. | 2,214,307.33 | |||||
| ShenzhenKonkaSmartElectricalApplianceTechnologyCo.,Ltd. | 3,973,386.95 | |||||
| ZhuhaiJinsuPlasticCo.,Ltd. | ||||||
| ShenzhenFushengNewMaterialCo.,Ltd. | 13,315,913.09 | 58,400,000.00 | 18,536,771.07 | |||
| ShenzhenYaodeTechnologyCo.,Ltd. | 219,357,772.76 | |||||
| WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | 304,654,243.69 | |||||
| ShenzhenKonkaYishijieCommercialDisplayCo.,Ltd. | 81,955,858.27 | |||||
| ChuzhouKonkaTechnologyIndustryDevelopmentCo.,Ltd. | 49,658,397.02 | |||||
| ChuzhouKangjinHealthcareIndustryDevelopmentCo.,Ltd. | 118,122,798.37 | |||||
| HaimenKangjianTechnologyIndustrialParkOperationandManagementCo.,Ltd. | 120,729,335.67 | |||||
| NanjingKangxingTechnologyIndustrial | ||||||
| Investee | ChangeintheCurrentPeriod | Endingbalance | Closingbalanceofimpairmentprovision | |||
| Otherequitychanges | Cashdividendorprofitdistributiondeclared | Impairmentallowance | Others | |||
| ParkOperationandManagementCo.,Ltd. | ||||||
| ChuzhouKangxinHealthcareIndustryDevelopmentCo.,Ltd. | 187,180,000.00 | |||||
| DongguanKonkaInvestmentCo.,Ltd. | 563,500,000.00 | |||||
| ChongqingKonkaRealEstateDevelopmentCo.,Ltd. | 49,500,000.00 | |||||
| ChongqingChengdaRealEstateCo.,Ltd. | 29,205,000.00 | |||||
| Yilifang(Hainan)TechnologyCo.,Ltd. | 58,715,678.97 | |||||
| ShenzhenMorsemiTechnologyCo.,Ltd. | 2,723,686.36 | |||||
| Total | 23,940,000.00 | 38,375,298.75 | 4,375,833,584.65 | 67,403,599.32 | ||
14.OtherEquityInstrumentInvestment
(1)Investmentinnon-tradingequityinstruments
| Item | Endingbalance | Beginningbalance |
| ShenzhenTianyilianScience&TechnologyCo.,Ltd. | ||
| ShenzhenAdoptNetworkCo.,Ltd. | ||
| BeijingKonkaTechnologyCo.,Ltd. | 1,200,000.00 | |
| AVO | 5,901,121.80 | 6,000,000.00 |
| ShaoyangHaishangEcologicalAgriculturalTechnologyCo.,Ltd. | 1,501,956.00 | 1,501,956.00 |
| FeihongElectronicsCo.,Ltd. | ||
| ZAEFI | ||
| ShenzhenChuangceInvestmentDevelopmentCo.,Ltd. | ||
| ShanlianInformationTechnologyEngineeringCenter | 1,860,809.20 | 1,860,809.20 |
| ShenzhenCIUScience&TechnologyCo.,Ltd. | 953,000.00 | 953,000.00 |
| ShenzhenDigitalTVNationalEngineeringLaboratoryCo.,Ltd. | 7,726,405.16 | 7,726,405.16 |
| ShanghaiNationalEngineeringResearchCenterofDigitalTVCo.,Ltd. | 2,400,000.00 | 2,400,000.00 |
| BohuUHD | 5,000,001.00 | |
| Total | 25,343,293.16 | 21,642,170.36 |
(2)Non-transactionalEquityInstrumentInvestment
| Item | Dividendincomerecognizedinthecurrentperiod | Accumulativegain | Accumulativeloss | Amountofretainedearningstransferredfromothercomprehensiveincome | Reasonforbeingdesignatedtobemeasuredatfairvalueofwhichrecordedinothercomprehensiveincome | Reasonforretainedearningstransferredfromothercomprehensiveincome |
| ShenzhenTianyilianScience&TechnologyCo.,Ltd. | 4,800,000.00 | Long-termholdingbasedonstrategicpurpose | ||||
| ShenzhenAdoptNetworkCo.,Ltd. | 5,750,000.00 | Long-termholdingbasedonstrategicpurpose | ||||
| BeijingKonkaTechnologyCo.,Ltd. | -1,700,000.00 | Long-termholdingbasedonstrategicpurpose | Salesofequity | |||
| AVO | 98,878.20 | Long-termholdingbasedonstrategicpurpose | ||||
| ShaoyangHaishangEcologicalAgriculturalTechnologyCo.,Ltd. | Long-termholdingbasedonstrategicpurpose | |||||
| FeihongElectronicsCo.,Ltd. | 1,300,000.00 | Long-termholdingbasedonstrategicpurpose | ||||
| ZAEFI | 100,000.00 | Long-termholdingbasedonstrategicpurpose | ||||
| ShenzhenChuangce | 485,000.00 | Long-termholdingbasedon |
| Item | Dividendincomerecognizedinthecurrentperiod | Accumulativegain | Accumulativeloss | Amountofretainedearningstransferredfromothercomprehensiveincome | Reasonforbeingdesignatedtobemeasuredatfairvalueofwhichrecordedinothercomprehensiveincome | Reasonforretainedearningstransferredfromothercomprehensiveincome |
| InvestmentDevelopmentCo.,Ltd. | strategicpurpose | |||||
| ShanlianInformationTechnologyEngineeringCenter | 3,139,190.80 | Long-termholdingbasedonstrategicpurpose | ||||
| ShenzhenCIUScience&TechnologyCo.,Ltd. | 200,000.00 | Long-termholdingbasedonstrategicpurpose | ||||
| ShenzhenDigitalTVNationalEngineeringLaboratoryCo.,Ltd. | 1,273,594.84 | Long-termholdingbasedonstrategicpurpose | ||||
| ShanghaiNationalEngineeringResearchCenterofDigitalTVCo.,Ltd. | Long-termholdingbasedonstrategicpurpose | |||||
| BohuUHD | Long-termholdingbasedonstrategicpurpose | |||||
| Total | 17,146,663.84 | -1,700,000.00 |
15.OtherNon-currentFinancialAssets
| Item | Endingbalance | Beginningbalance |
| ChinaAssetManagement-JiayiOverseasDesignatedPlan | 203,000,000.00 | 203,000,000.00 |
| HunanWanrongTechnologyCo.,Ltd. | 47,230,000.00 | 47,230,000.00 |
| YibinOCTSanjiangPropertyCo.,Ltd. | 200,000,000.00 | 200,000,000.00 |
| YiliEcologicalRestorationCo.,Ltd. | 90,000,000.00 | 90,000,000.00 |
| KunshanXinjiaEmergingIndustryEquityInvestmentFundPartnership(LimitedPartnership) | 13,028,268.90 | |
| ShenzhenKanghongDongshengInvestmentPartnership(LimitedPartnership) | 17,754,800.00 | |
| TongxiangWuzhenJiayuDigitalEconomyIndustryEquityInvestmentPartnership(LimitedPartnership) | 40,000,000.00 | |
| YibinKanghuiElectronicInformationIndustryEquityInvestmentPartnership(LimitedPartnership) | 4,000,000.00 | |
| ChuzhouJiachenInformationTechnologyConsultingServicePartnership(LimitedPartnership) | 49,200,000.00 | |
| YanchengKangyanInformationIndustryInvestmentPartnership(LimitedPartnership) | 1,050,000.00 | |
| Subtotalofequityinvestments | 665,263,068.90 | 540,230,000.00 |
| ChuzhouHuikeSmartHouseholdAppliancesIndustryInvestmentPartnership(LimitedPartnership) | 1,049,891,727.86 | 1,049,891,727.83 |
| NingboYuanqingNo.9InvestmentPartnership | 98,000,000.00 | 98,000,000.00 |
| ShenzhenBeihuTechnologyPartnership(LimitedPartnership) | 65,000,000.00 | 65,000,000.00 |
| Subtotalofdebtinvestments | 1,212,891,727.86 | 1,212,891,727.83 |
| Total | 1,878,154,796.76 | 1,753,121,727.83 |
16.InvestmentProperty
(1)Investmentpropertiesmeasuredatcost
| Item | Plant&buildingsandlanduseright |
| I.Originalcarryingvalue | |
| 1.Beginningbalance | 447,413,230.79 |
| Item | Plant&buildingsandlanduseright |
| 2.Increaseinthecurrentyear | 238,325,000.85 |
| (1)Outsourcing | |
| (2)Fixedassets\Constructioninprogress\Transferofintangibleassets | 238,325,000.85 |
| 3.Decreaseinthecurrentyear | 85,175,552.93 |
| (1)Disposal | 1,739,906.85 |
| (2)Othertransferout | 83,435,646.08 |
| 4.Endingbalance | 600,562,678.71 |
| II.Theaccumulativedepreciationandaccumulativeamortization | |
| 1.Beginningbalance | 47,215,856.72 |
| 2.Increaseinthecurrentyear | 20,751,174.80 |
| (1)Provisionoramortization | 20,751,174.80 |
| 3.Decreaseinthecurrentyear | 5,990,021.10 |
| (1)Disposal | 342,544.16 |
| (2)Othertransferout | 5,647,476.94 |
| 4.Endingbalance | 61,977,010.42 |
| III.Depreciationreserves | |
| 1.Beginningbalance | |
| 2.Increaseinthecurrentyear | |
| (1)Withdrawal | |
| 3.Decreaseinthecurrentyear | |
| (1)Disposal | |
| (2)Othertransferout | |
| 4.Endingbalance | |
| IV.Carryingvalue | |
| 1.Endingcarryingvalue | 538,585,668.29 |
| 2.Beginningcarryingvalue | 400,197,374.07 |
Note:TheincreaseofinvestmentrealestateinthecurrentperiodismainlyduetothecompletionofKonkaYibinIndustrialParkandKonkaYantaiIndustrialPark.
(2)InvestmentpropertiesmeasuredatfairvalueTherewerenoinvestmentpropertiesmeasuredatfairvalueoftheCompany.
(3)Investmentpropertiesintheprocessoftitlecertificatehandling
| Item | Carryingvalue | Reason |
| KonkaYibinIndustrialPark | 153,966,037.13 | Incorporationandunderprocessing |
| KonkaYantaiIndustrialPark | 37,976,833.18 | Incorporationandunderprocessing |
| Total | 191,942,870.31 |
17.Fixedassets
| Item | Endingcarryingvalue | Beginningcarryingvalue |
| FixedAssets | 3,178,642,017.84 | 2,561,254,191.55 |
| Fixedassetspendingfordisposal | ||
| Total | 3,178,642,017.84 | 2,561,254,191.55 |
(1)ListofFixedAssets
| Item | Housesandbuildings | Mechanicalequipment | Electronicequipment | Transportationequipment | Otherequipment | Total |
| I.Originalcarryingvalue | ||||||
| 1.Beginningbalance | 2,035,218,106.99 | 2,017,148,345.41 | 184,064,655.85 | 58,063,867.63 | 241,613,861.33 | 4,536,108,837.21 |
| 2.Increasedamountoftheperiod | 278,011,579.92 | 785,892,811.65 | 30,295,330.99 | 10,259,226.45 | 67,290,896.84 | 1,171,749,845.85 |
| (1)Purchase | 46,512,597.89 | 158,307,301.21 | 29,379,778.67 | 10,259,226.45 | 61,819,125.07 | 306,278,029.29 |
| (2)Transferofconstructioninprogress | 155,209,187.40 | 627,585,510.44 | 915,552.32 | 5,471,771.77 | 789,182,021.93 | |
| (3)Increaseforbusiness | 76,289,794.63 | 76,289,794.63 |
| Item | Housesandbuildings | Mechanicalequipment | Electronicequipment | Transportationequipment | Otherequipment | Total |
| combination | ||||||
| (4)Increaseforotherreasons | 428,097,969.36 | 111,846,244.51 | 7,433,057.11 | 3,380,172.25 | 10,854,225.10 | 561,611,668.33 |
| 3.Decreasedamountoftheperiod | 117,153,018.44 | 111,846,244.51 | 7,081,833.81 | 3,380,172.25 | 10,854,225.10 | 250,315,494.11 |
| (1)DisposalorScrap | 310,944,950.92 | 351,223.30 | 311,296,174.22 | |||
| (2)Decreaseforlossofcontrollingright | 1,885,131,717.55 | 2,691,194,912.55 | 206,926,929.73 | 64,942,921.83 | 298,050,533.07 | 5,146,247,014.73 |
| (3)Decreaseforotherreasons | ||||||
| 4.Endingbalance | 633,844,572.99 | 939,156,102.95 | 139,979,797.13 | 39,874,403.17 | 153,386,011.72 | 1,906,240,887.96 |
| II.Accumulativedepreciation | 73,340,031.13 | 193,852,179.42 | 13,928,212.30 | 6,651,909.48 | 14,469,197.25 | 302,241,529.58 |
| 1.Beginningbalance | 69,498,866.64 | 193,852,179.42 | 13,928,212.30 | 6,651,909.48 | 14,469,197.25 | 298,400,365.09 |
| 2.Increasedamountoftheperiod | 3,841,164.49 | 3,841,164.49 |
| Item | Housesandbuildings | Mechanicalequipment | Electronicequipment | Transportationequipment | Otherequipment | Total |
| (1)Withdrawal | 205,462,260.22 | 88,701,873.57 | 5,889,810.99 | 2,956,257.05 | 7,190,858.00 | 310,201,059.83 |
| (2)Increaseforbusinesscombination | 60,421,028.86 | 88,701,873.57 | 5,670,143.24 | 2,956,257.05 | 7,150,911.79 | 164,900,214.51 |
| (3)Increaseforotherreasons | 145,041,231.36 | 219,667.75 | 39,946.21 | 145,300,845.32 | ||
| 3.Decreasedamountoftheperiod | 501,722,343.90 | 1,044,306,408.80 | 148,018,198.44 | 43,570,055.60 | 160,664,350.97 | 1,898,281,357.71 |
| (1)DisposalorScrap | ||||||
| (2)Decreaseforlossofcontrollingright | 1,247,805.91 | 64,023,905.57 | 1,156,577.28 | 820,215.24 | 1,365,253.70 | 68,613,757.70 |
| (3)Decreaseforotherreasons | 627,051.21 | 71,982.74 | 248,453.22 | 947,487.17 | ||
| 4.Endingbalance | 627,051.21 | 71,982.74 | 248,453.22 | 947,487.17 | ||
| III.Depreciationreserves | 210,272.52 | 7,330.00 | 20,003.17 | 237,605.69 | ||
| 1.Beginningbalance | 210,272.52 | 7,330.00 | 20,003.17 | 237,605.69 |
| Item | Housesandbuildings | Mechanicalequipment | Electronicequipment | Transportationequipment | Otherequipment | Total |
| 2.Increasedamountoftheperiod | 1,247,805.91 | 64,440,684.26 | 1,221,230.02 | 820,215.24 | 1,593,703.75 | 69,323,639.18 |
| (1)Withdrawal | ||||||
| (2)Increaseforbusinesscombination | 1,382,161,567.74 | 1,582,447,819.49 | 57,687,501.27 | 20,552,650.99 | 135,792,478.35 | 3,178,642,017.84 |
| 3.Decreasedamountoftheperiod | 1,400,125,728.09 | 1,013,968,336.89 | 42,928,281.44 | 17,369,249.22 | 86,862,595.91 | 2,561,254,191.55 |
| (1)DisposalorScrap | ||||||
| (2)Decreaseforlossofcontrollingright | 2,035,218,106.99 | 2,017,148,345.41 | 184,064,655.85 | 58,063,867.63 | 241,613,861.33 | 4,536,108,837.21 |
| 4.Endingbalance | 278,011,579.92 | 785,892,811.65 | 30,295,330.99 | 10,259,226.45 | 67,290,896.84 | 1,171,749,845.85 |
| IV.Carryingvalue | 46,512,597.89 | 158,307,301.21 | 29,379,778.67 | 10,259,226.45 | 61,819,125.07 | 306,278,029.29 |
| 1.Endingcarryingvalue | 155,209,187.40 | 627,585,510.44 | 915,552.32 | 5,471,771.77 | 789,182,021.93 | |
| 2.Beginningcarryingvalue | 76,289,794.63 | 76,289,794.63 |
(2)ListofTemporarilyIdleFixedAssets
| Item | Originalcarryingvalue | Accumulativedepreciation | Impairmentprovision | Carryingvalue |
| Mechanicalequipment | 3,673,206.93 | 1,657,315.38 | 1,933,845.35 | 82,046.20 |
| Electronicequipment | 1,492,298.49 | 1,083,615.47 | 408,683.02 | |
| Otherequipment | 866,004.14 | 738,638.36 | 26,675.22 | 100,690.56 |
| Total | 6,031,509.56 | 3,479,569.21 | 1,960,520.57 | 591,419.78 |
(3)FixedAssetsLeasedinfromFinancingLease
| Item | Originalcarryingvalue | Accumulativedepreciation | Impairmentprovision | Carryingvalue |
| Buildings | 104,725,378.00 | 10,310,322.92 | 94,415,055.08 | |
| Mechanicalequipment | 747,492,485.33 | 373,493,777.70 | 373,998,707.63 | |
| Transportationequipment | 10,078,398.20 | 8,363,765.16 | 1,714,633.04 | |
| Electronicequipment | 46,006,058.20 | 39,652,392.14 | 6,353,666.06 | |
| Otherequipment | 55,613,076.42 | 42,553,960.39 | 13,059,116.03 | |
| Total | 963,915,396.15 | 474,374,218.31 | 489,541,177.84 |
(4)FixedAssetsLeasedoutfromOperationLease
| Item | Endingcarryingvalue |
| Mechanicalequipment | 17,281,963.09 |
| Transportationvehiclesandelectronicequipment | 173,606.48 |
| Total | 17,455,569.57 |
(5)DetailsofFixedAssetsFailedtoAccomplishCertificationofProperty
| Item | Originalcarryingvalue | Accumulativedepreciation | Impairmentprovision | Netcarryingvalue | Reason |
| KonkaYibinIndustrialPark | 122,091,094.58 | 122,091,094.58 | Newconstructionwithpendingcertificate | ||
| YikangBuildingproperty | 76,610,752.33 | 36,904,816.64 | 39,705,935.69 | Historicalreasons | |
| JingyuanBuildingproperty | 20,018,497.00 | 9,545,350.92 | 10,473,146.08 | Historicalreasons | |
| 26-1Longzhimeng,PangjiangStreetPropertyinDadongDistrict,Shenyang | 6,072,572.34 | 1,019,177.51 | 5,053,394.83 | Underprocessing | |
| PurificationtankforliquidwasteofXingDaHongYe | 2,653,000.00 | 1,482,363.75 | 1,170,636.25 | Underprocessing | |
| Total | 105,354,821.67 | 48,951,708.82 | 56,403,112.85 |
(6)FixedAssetswithRestrictedOwnershiporUseRight
| Item | Endingcarryingvalue | Reasons |
| HousingandbuildingsofAnhuiTongchuang | 154,681,545.21 | Mortgageloans |
| MachineryequipmentofJiangxiKonka | 141,962,217.67 | Financeleasemortgage |
| MachineryequipmentofXinfengMicrocrystalline | 109,794,046.99 | Financeleasemortgage |
| HousingandbuildingsofFrestec | 94,415,055.08 | Mortgageloans |
| Refrigeration | ||
| MachineryequipmentofNanoCrystallizedGlass | 80,230,031.99 | Financeleasemortgage |
| BuildingsofKonkaGroup | 72,448,630.14 | Ascollateralforloan |
| HousingandbuildingsofXingDaHongYe | 40,867,928.18 | Financeleasemortgage |
| Electronicequipment,transportationequipmentandotherequipmentofKonkaGroup | 21,626,382.29 | Financeleasemortgage |
| MachineryequipmentofDongguanKonkaandotherequipment | 15,650,423.83 | Financeleasemortgage |
| MachineryequipmentofXingdaHongye | 14,753,054.76 | Financeleasemortgage |
| MachineryequipmentofBoluoKonkaPrecision | 11,109,965.23 | Financeleasemortgage |
| FactoriesofBoluoKonka | 7,526,113.83 | Mortgageloans |
| BuildingsofJiangxiKonka | 3,676,370.92 | Ascollateralforformershareholder’sguarantee |
| Total | 768,741,766.12 |
18.ConstructioninProgress
| Item | Endingbalance | Beginningbalance |
| ConstructioninProgress | 9,236,643,931.68 | 4,291,544,368.52 |
| Total | 9,236,643,931.68 | 4,291,544,368.52 |
18.1Constructioninprogress
(1)ListofConstructioninProgress
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Impairmentprovision | Carryingvalue | Carryingamount | Impairmentprovision | Carryingvalue | |
| ComprehensiveimprovementengineeringprojectofdrainagebasinsinthecityofDonggang | 878,298,840.85 | 878,298,840.85 | 715,838,346.63 | 715,838,346.63 | ||
| CentralCityComprehensiveacceleratedprogramsinEconomicandTechnologicalDevelopmentZoneofBinhai,Weifang | 854,403,424.70 | 854,403,424.70 | 329,745,585.38 | 329,745,585.38 | ||
| SewagetreatmentandwaterenvironmentprojectinAnkangCounty | 736,291,181.05 | 736,291,181.05 | ||||
| PPPProjectofLushanShaheEcologicalRehabilitationandImprovement(PhaseI) | 712,003,094.27 | 712,003,094.27 | 511,792,398.90 | 511,792,398.90 | ||
| PPPProjectofFunanSewageTreatment | 698,546,462.73 | 698,546,462.73 | 592,295,248.19 | 592,295,248.19 | ||
| ComprehensivewaterenvironmentimprovementprojectinMengchengCounty,AnhuiProvince | 693,071,428.99 | 693,071,428.99 | ||||
| WatersupplyengineeringprojectinMazongshanTown,SubeiMongolAutonomousCounty,GansuProvince | 651,327,229.42 | 651,327,229.42 | 571,112,712.15 | 571,112,712.15 | ||
| IntegratedPPPProjectofHuangpiSewage | 566,856,746.38 | 566,856,746.38 | 385,214,225.65 | 385,214,225.65 | ||
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Impairmentprovision | Carryingvalue | Carryingamount | Impairmentprovision | Carryingvalue | |
| Treatment | ||||||
| AnkangSmartPlant | 549,848,298.86 | 549,848,298.86 | 143,320,357.80 | 143,320,357.80 | ||
| ThesecondlineofJiangxiNanoCrystallizedGlass | 335,893,840.77 | 335,893,840.77 | 336,485,492.44 | 336,485,492.44 | ||
| DayiProject | 317,578,212.72 | 317,578,212.72 | 79,258,722.98 | 79,258,722.98 | ||
| PhaseIofecologicalrestorationandprotectionofDanheRiverBasininGaopingCity | 315,363,263.81 | 315,363,263.81 | ||||
| WaterenvironmentimprovementprojectindowntownChongzhou | 294,709,246.41 | 294,709,246.41 | ||||
| TongchuanProject | 265,143,141.30 | 265,143,141.30 | 99,720,949.28 | 99,720,949.28 | ||
| ThesecondsewageplantofLaizhou | 188,185,801.03 | 188,185,801.03 | 90,971,785.34 | 90,971,785.34 | ||
| ConstructionofSuiningElectronicIndustrialParkWorkshops | 185,205,457.46 | 185,205,457.46 | 49,129,811.44 | 49,129,811.44 | ||
| FranchiseprojectofdisposalofkitchenwasteinGaoling,Xi'an | 170,314,313.43 | 170,314,313.43 | ||||
| WatersupplyandwaterresourcesdevelopmentprojectinChangning | 159,947,876.21 | 159,947,876.21 | ||||
| R&DequipmentconstructionprojectofChongqingOptoelectronicResearchInstitute | 129,766,743.81 | 129,766,743.81 | ||||
| PhaseIIofRuralResidentialEnvironment | 129,657,635.39 | 129,657,635.39 | ||||
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Impairmentprovision | Carryingvalue | Carryingamount | Impairmentprovision | Carryingvalue | |
| ImprovementandReconstructionProject(domesticsewagetreatment)inQinhanNewTown | ||||||
| GuangmingProject | 122,764,816.91 | 122,764,816.91 | 39,753,607.36 | 39,753,607.36 | ||
| YibinKonkaHigh-TechIndustrialPark | 86,183,539.65 | 86,183,539.65 | ||||
| XinfengLine1modificationproject | 85,768,083.75 | 85,768,083.75 | ||||
| Otherprojects | 281,466,875.18 | 281,466,875.18 | 174,953,501.58 | 174,953,501.58 | ||
| Total | 9,236,643,931.68 | 9,236,643,931.68 | 4,291,544,368.52 | 4,291,544,368.52 | ||
(2)ChangesofSignificantConstructioninProgress
| Nameofitem | Beginningbalance | Increased | Decreased | Endingbalance | |
| Transferredtolong-termassets | Otherdecrease | ||||
| ComprehensiveimprovementengineeringprojectofdrainagebasinsinthecityofDonggang | 715,838,346.63 | 162,460,494.22 | 878,298,840.85 | ||
| CentralCityComprehensiveacceleratedprogramsinEconomicandTechnologicalDevelopmentZoneofBinhai,Weifang | 329,745,585.38 | 524,657,839.32 | 854,403,424.70 | ||
| Nameofitem | Beginningbalance | Increased | Decreased | Endingbalance | |
| Transferredtolong-termassets | Otherdecrease | ||||
| SewagetreatmentandwaterenvironmentprojectinAnkangCounty | 736,291,181.05 | 736,291,181.05 | |||
| PPPProjectofLushanShaheEcologicalRehabilitationandImprovement(PhaseI) | 511,792,398.90 | 200,210,695.37 | 712,003,094.27 | ||
| PPPProjectofFunanSewageTreatment | 592,295,248.19 | 106,251,214.54 | 698,546,462.73 | ||
| ComprehensivewaterenvironmentimprovementprojectinMengchengCounty,AnhuiProvince | 693,071,428.99 | 693,071,428.99 | |||
| WatersupplyengineeringprojectinMazongshanTown,SubeiMongolAutonomousCounty,GansuProvince | 571,112,712.15 | 80,214,517.27 | 651,327,229.42 | ||
| IntegratedPPPProjectofHuangpiSewageTreatment | 385,214,225.65 | 181,642,520.73 | 566,856,746.38 | ||
| AnkangSmartPlant | 143,320,357.80 | 406,527,941.06 | 549,848,298.86 | ||
| ThesecondlineofJiangxiNanoCrystallizedGlass | 336,485,492.44 | 591,651.67 | 335,893,840.77 | ||
| DayiProject | 79,258,722.98 | 238,319,489.74 | 317,578,212.72 | ||
| PhaseIofecologicalrestorationandprotectionofDanheRiverBasininGaopingCity | 315,363,263.81 | 315,363,263.81 | |||
| WaterenvironmentimprovementprojectindowntownChongzhou | 294,709,246.41 | 294,709,246.41 | |||
| TongchuanProject | 99,720,949.28 | 165,422,192.02 | 265,143,141.30 | ||
| Nameofitem | Beginningbalance | Increased | Decreased | Endingbalance | |
| Transferredtolong-termassets | Otherdecrease | ||||
| ThesecondsewageplantofLaizhou | 90,971,785.34 | 97,214,015.69 | 188,185,801.03 | ||
| ConstructionofSuiningElectronicIndustrialParkWorkshops | 49,129,811.44 | 138,669,460.06 | 2,593,814.04 | 185,205,457.46 | |
| FranchiseprojectofdisposalofkitchenwasteinGaoling,Xi'an | 170,314,313.43 | 170,314,313.43 | |||
| WatersupplyandwaterresourcesdevelopmentprojectinChangning | 159,947,876.21 | 159,947,876.21 | |||
| R&DequipmentconstructionprojectofChongqingOptoelectronicResearchInstitute | 543,924,950.08 | 414,158,206.27 | 129,766,743.81 | ||
| PhaseIIofRuralResidentialEnvironmentImprovementandReconstructionProject(domesticsewagetreatment)inQinhanNewTown | 129,657,635.39 | 129,657,635.39 | |||
| GuangmingProject | 39,753,607.36 | 83,780,590.74 | 769,381.19 | 122,764,816.91 | |
| YibinKonkaHigh-TechIndustrialPark | 86,183,539.65 | 189,873,592.06 | 276,057,131.71 | ||
| XinfengLine1modificationproject | 85,768,083.75 | 8,847,307.77 | 94,615,391.52 | ||
| Otherprojects | 511,438,994.02 | 375,768,538.94 | 265,950,228.28 | 3,304,937.06 | 617,360,715.95 |
| Total | 4,291,544,368.52 | 6,003,140,304.90 | 1,054,144,153.01 | 3,896,588.73 | 9,236,643,931.68 |
(Continued)
| Nameofitem | Estimatednumber(RMB100million) | Proportionestimatedoftheprojectaccumulativeinput(%) | EngineeringSchedule(%) | Accumulativeamountofcapitalizedinterests | Ofwhich:theamountofthecapitalizedinterestsoftheperiod | Capitalizationrateoftheinterestsoftheperiod(%) | Capitalresources |
| ComprehensiveimprovementengineeringprojectofdrainagebasinsinthecityofDonggang | 12.99 | 67.61 | 67.61 | 69,458,190.80 | 36,309,241.28 | 6.05 | Self-ownedfundandbankfinancing |
| CentralCityComprehensiveacceleratedprogramsinEconomicandTechnologicalDevelopmentZoneofBinhai,Weifang | 16.50 | 51.78 | 51.78 | 22,075,641.66 | 16,389,971.72 | 5.36 | Self-ownedfundandbankfinancing |
| SewagetreatmentandwaterenvironmentprojectinAnkangCounty | 22.41 | 32.86 | 32.86 | Self-ownedfund | |||
| PPPProjectofLushanShaheEcologicalRehabilitationandImprovement(PhaseI) | 12.68 | 56.16 | 56.16 | Self-ownedfund | |||
| PPPProjectofFunanSewageTreatment | 9.72 | 71.84 | 71.84 | 25,861,378.47 | 21,938,159.72 | 4.82 | Self-ownedfundandbankfinancing |
| ComprehensivewaterenvironmentimprovementprojectinMengchengCounty,AnhuiProvince | 15.93 | 43.49 | 43.49 | Self-ownedfund | |||
| Watersupplyengineeringproject | 9.70 | 67.14 | 67.14 | 20,628,731.25 | 20,628,731.25 | 5.05 | Self-ownedfundandbank |
| Nameofitem | Estimatednumber(RMB100million) | Proportionestimatedoftheprojectaccumulativeinput(%) | EngineeringSchedule(%) | Accumulativeamountofcapitalizedinterests | Ofwhich:theamountofthecapitalizedinterestsoftheperiod | Capitalizationrateoftheinterestsoftheperiod(%) | Capitalresources |
| inMazongshanTown,SubeiMongolAutonomousCounty,GansuProvince | financing | ||||||
| IntegratedPPPProjectofHuangpiSewageTreatment | 7.38 | 76.77 | 76.77 | 14,431,587.50 | 14,431,587.50 | 4.80 | Self-ownedfundandbankfinancing |
| AnkangSmartPlant | 9.3 | 59.12 | 59.12 | Self-ownedfund | |||
| DayiProject | 3.92 | 80.99 | 80.99 | 6,075,035.28 | 6,075,035.28 | 7.91 | Self-ownedfundandbankfinancing |
| PhaseIofecologicalrestorationandprotectionofDanheRiverBasininGaopingCity | 8.93 | 35.32 | 35.32 | Self-ownedfund | |||
| WaterenvironmentimprovementprojectindowntownChongzhou | 8.82 | 33.40 | 33.40 | Self-ownedfund | |||
| TongchuanProject | 3.93 | 67.46 | 67.46 | Self-ownedfund | |||
| ThesecondsewageplantofLaizhou | 2.56 | 73.41 | 73.41 | 5,288,393.57 | 5,288,393.57 | 5.30 | Self-ownedfund |
| ConstructionofSuiningElectronicIndustrialParkWorkshops | 7.04 | 31.09 | 31.09 | Self-ownedfund | |||
| Franchiseprojectofdisposalof | 2.46 | 69.32 | 69.32 | Self-ownedfund |
NotestotheFinancialStatementsofKonkaGroupCo.,Ltd.
FortheYearfrom1January2020to31December2020(allamountsinRMByuanunlessotherwisestated)
| Nameofitem | Estimatednumber(RMB100million) | Proportionestimatedoftheprojectaccumulativeinput(%) | EngineeringSchedule(%) | Accumulativeamountofcapitalizedinterests | Ofwhich:theamountofthecapitalizedinterestsoftheperiod | Capitalizationrateoftheinterestsoftheperiod(%) | Capitalresources |
| kitchenwasteinGaoling,Xi'an | |||||||
| WatersupplyandwaterresourcesdevelopmentprojectinChangning | 5.57 | 28.71 | 28.71 | Self-ownedfund | |||
| R&DequipmentconstructionprojectofChongqingOptoelectronicResearchInstitute | 7.08 | 71.65 | 71.65 | Self-ownedfund | |||
| PhaseIIofRuralResidentialEnvironmentImprovementandReconstructionProject(domesticsewagetreatment)inQinhanNewTown | 7.99 | 16.23 | 16.23 | Self-ownedfund | |||
| GuangmingProject | 5.33 | 23.19 | 23.19 | 1,318,597.14 | 1,318,597.14 | 1.57 | Self-ownedfundandprojectfinancing |
| YibinKonkaHigh-TechIndustrialPark | 3.50 | 100.00 | 100.00 | Self-ownedfund | |||
| XinfengLine1modificationproject | 0.2 | 44.24 | 44.24 | Bankfinancingandfinancelease | |||
| Otherprojects | 39,229,802.86 | ||||||
| Total | 236,617,352.69 | 122,379,717.46 |
19.IntangibleAssets
(1)Listofintangibleassets
| Item | Landuseright | Intellectualproperty | Total | ||||
| Trademarkright | Patentandknow-how | Franchiserights | Righttouse | Subtotal | |||
| I.Originalcarryingvalue | |||||||
| 1.Beginningbalance | 1,026,423,067.19 | 75,482,617.43 | 102,532,417.78 | 106,571,344.10 | 99,690,005.24 | 384,276,384.55 | 1,410,699,451.74 |
| 2.Increasedamountoftheperiod | 191,543,920.63 | 5,000.00 | 18,655,803.18 | 18,660,803.18 | 210,204,723.81 | ||
| (1)Purchase | 184,398,069.18 | 5,000.00 | 7,219,776.82 | 7,224,776.82 | 191,622,846.00 | ||
| (2)Transferofconstructioninprogress | 9,624,190.74 | 9,624,190.74 | 9,624,190.74 | ||||
| (3)InternalR&D | 1,811,835.62 | 1,811,835.62 | 1,811,835.62 | ||||
| (4)Transferfrominvestmentproperty | 7,145,851.45 | 7,145,851.45 | |||||
| 3.Decreasedamountoftheperiod | 171,140,223.69 | 171,140,223.69 | |||||
| (1)Disposal | 73,038,856.61 | 73,038,856.61 | |||||
| (2)Decreaseforlossofcontrollingright | 45,779,912.32 | 45,779,912.32 | |||||
| (3)Decreaseintransfer-inofinvestmentrealestate | 52,321,454.76 | 52,321,454.76 | |||||
| 4.Endingbalance | 1,046,826,764.13 | 75,487,617.43 | 102,532,417.78 | 106,571,344.10 | 118,345,808.42 | 402,937,187.73 | 1,449,763,951.86 |
| Item | Landuseright | Intellectualproperty | Total | ||||
| Trademarkright | Patentandknow-how | Franchiserights | Righttouse | Subtotal | |||
| II.Accumulatedamortization | - | - | |||||
| 1.Beginningbalance | 78,757,617.42 | 5,272,221.47 | 56,417,825.66 | 11,105,062.50 | 42,973,928.86 | 115,769,038.49 | 194,526,655.91 |
| 2.Increasedamountoftheperiod | 36,970,965.44 | 231.48 | 26,413,690.21 | 4,442,025.00 | 12,810,539.69 | 43,666,486.38 | 80,230,695.34 |
| (1)Withdrawal | 35,164,652.99 | 231.48 | 26,413,690.21 | 4,442,025.00 | 12,810,539.69 | 43,666,486.38 | 78,424,382.89 |
| (2)Otherincreases | 1,806,312.45 | 1,806,312.45 | |||||
| 3.Decreasedamountoftheperiod | 17,085,483.51 | 17,085,483.51 | |||||
| (1)Disposal | 7,524,347.17 | 7,524,347.17 | |||||
| (2)Decreaseforlossofcontrollingright | 1,655,203.71 | 1,655,203.71 | |||||
| (3)Decreaseintransfer-inofinvestmentrealestate | 7,905,932.63 | 7,905,932.63 | |||||
| 4.Endingbalance | 98,643,099.35 | 5,272,452.95 | 82,831,515.87 | 15,547,087.50 | 55,377,712.07 | 159,028,768.39 | 257,671,867.74 |
| III.Depreciationreserves | |||||||
| 1.Beginningbalance | 2,901,082.61 | 2,901,082.61 | 2,901,082.61 | ||||
| 2.Increasedamountoftheperiod | |||||||
| (1)Withdrawal | |||||||
| (2)Increaseforbusinesscombination | |||||||
| Item | Landuseright | Intellectualproperty | Total | ||||
| Trademarkright | Patentandknow-how | Franchiserights | Righttouse | Subtotal | |||
| 3.Decreasedamountoftheperiod | |||||||
| (1)Disposal | |||||||
| (2)Decreaseforlossofcontrollingright | |||||||
| 4.Endingbalance | 2,901,082.61 | 2,901,082.61 | 2,901,082.61 | ||||
| IV.Carryingvalue | |||||||
| 1.Endingcarryingvalue | 948,183,664.78 | 70,215,164.48 | 16,799,819.30 | 91,024,256.60 | 62,968,096.35 | 241,007,336.73 | 1,189,191,001.51 |
| 2.Beginningcarryingvalue | 947,665,449.77 | 70,210,395.96 | 43,213,509.51 | 95,466,281.60 | 56,716,076.38 | 265,606,263.45 | 1,213,271,713.22 |
TheratioofintangibleassetsformedthroughinternalR&Dtothebalanceofintangibleassetsbytheendofthisyearwas0.15%.
(2)Intangibleassetsleasedthroughfinancialleasing
| Item | Originalbookvalue | Accumulatedamortization | Provisionforimpairment | Carryingvalue |
| landuseright | 74,399,250.00 | 4,710,869.54 | 69,688,380.46 | |
| Patentsandknow-how | 28,000,000.00 | 16,000,000.00 | 12,000,000.00 | |
| Total | 102,399,250.00 | 20,710,869.54 | 81,688,380.46 |
(3)LandUseRightwithCertificateofTitleUncompleted
| Item | Carryingvalue | Reason |
| LandusagerightofthesubsidiaryNanocrystalline | 5,236,420.37 | Underprocessing |
| Total | 5,236,420.37 |
(4)SignificantIntangibleAssets
| Item | Endingcarryingvalue | Remainingamortizationperiod |
| LandusagerightofFenggangKonkaIntelligentIndustrialPark | 198,040,434.67 | 48.67 |
| FrestecZhijialanduseright | 96,024,621.61 | 49.75 |
| FranchiserightsofsewagetreatmentinLaizhou | 95,503,537.51 | 21.50 |
| LandusagerightofChongqingKonka | 61,789,103.75 | 48.67 |
| LandusagerightofFrestec | 69,688,380.46 | 35.75 |
| LandusagerightofHuanjia(Henan) | 65,894,816.06 | 48.50 |
| LandusagerightofAnhuiKonka2#land | 55,952,866.67 | 47.83 |
| LandusagerightofAnhuiKonka3#land | 19,212,162.54 | 47.92 |
| Total | 662,105,923.27 |
(5)IntangibleAssetswithrestrictedownershiporusingright
| Item | Endingcarryingvalue | Reasons |
| LandusagerightofFrestec | 69,688,380.46 | Ascollateralfor |
| Item | Endingcarryingvalue | Reasons |
| loan | ||
| LandusagerightofAnhuiKonka2#land | 55,952,866.67 | Ascollateralforloan |
| LanduserightofAnhuiTongchuang | 18,920,247.71 | Ascollateralforloan |
| LandusagerightofXingDaHongYe | 14,517,613.34 | Ascollateralforloan |
| Yikangtechnologypatentsandknow-how | 12,000,000.00 | Financeleasemortgage |
| LandusagerightofJiangxiKonka | 10,518,420.58 | Originalshareholderguaranteemortgage |
| LanduserightofKangjiainYibin | 5,705,407.85 | Ascollateralforloan |
| LanduserightofKonkaGuangming | 5,339,539.00 | Ascollateralforloan |
| LanduserightofBoluoKonka | 1,113,084.13 | Ascollateralforloan |
| Total | 193,755,559.74 |
20.Developmentexpenditures
| Item | Beginningbalance | Increased | Decreased | Endingbalance | |
| Expenditureofinternaldevelopment | Amountrecognizedasintangibleassets | Transferredintocurrentprofitorloss | |||
| AIOTsceneaudiosystembasedonNLPalgorithm | - | 1,811,835.62 | 1,811,835.62 | - | - |
| Total | 1,811,835.62 | 1,811,835.62 | - | - | |
Note:InNovember2020,theAIOTvoicesystembasedonNLPalgorithmdevelopedbytheCompanyreachedtheserviceableconditionsandwasacceptedandmovedfromdevelopmentexpensetointangibleassetsasitmettheconditionstobereportedasintangibleassets.
21.Goodwill
(1)OriginalCarryingValueofGoodwill
| Nameoftheinvestees | Beginningbalance | Increased | Decreased | Endingbalance | ||
| Formedfromthe | Others | Dispose | Others | |||
| AnhuiKonka | 3,597,657.15 | 3,597,657.15 | ||||
| EconTechnology | 467,825,151.34 | 467,825,151.34 | ||||
| JiangxiKonka | 340,111,933.01 | 340,111,933.01 | ||||
| XingDaHongYe | 44,156,682.25 | 44,156,682.25 | ||||
| Total | 855,691,423.75 | 3,597,657.15 | 852,093,766.60 | |||
(2)ProvisionsforGoodwillImpairment
| Nameoftheinvestees | Beginningbalance | Increased | Decreased | Endingbalance | ||
| Withdrawal | Others | Dispose | Others | |||
| AnhuiKonka | 3,597,657.15 | 3,597,657.15 | ||||
| EconTechnology | ||||||
| JiangxiKonka | 76,431,127.34 | 77,906,818.95 | 154,337,946.29 | |||
| XingDaHongYe | 21,959,947.14 | 21,959,947.14 | ||||
| Total | 76,431,127.34 | 103,464,423.24 | 3,597,657.15 | 176,297,893.43 | ||
(3)RelevantinformationontheassetgrouporcombinationofassetgroupswheregoodwillislocatedThisyear,thecompanyhiredanappraisalagencytoassesstherecoverableamountoftheassetgrouporcombinationofassetgroupswherethegoodwillislocated.Theassetgroupcomposedofidentifiableintangibleassets(excludingworkingcapitalandnon-operatingassets)isrelatedtogoodwill.Theconfirmationoftheassetgroupatthetimeofgoodwillimpairmenttestisconsistentwiththeassetgrouporcombinationofassetgroupsdeterminedatthedateofpurchase
andthepreviousyear’sgoodwillimpairmenttest.
(4)Thekeyassumptionsandbasisforcalculatingtherecoverableamountoftheassetgroupareasfollows:
①Assumingthattheassessedunitcontinuestooperate,andtherearenomajorchangesinthekeyaspectsofthebusinessscope,salesmodelandchannels,management,etc.thataffectproductionandoperationfromthecurrentsituation;②Assumethatthesocialandeconomicenvironmentoftheassessedunitdoesnotchangesignificantly,andtherelevantlaws,regulations,andpoliciesofthecountryandtheregionwherethecompanyislocatedhavenomajorchanges;
③Assumethatthebusinessscope,operationmode,managementmode,etc.oftheassessedunitarecontinuouslyimprovedandimprovedonthebasisofmaintainingconsistency,andcanmaketimelyadjustmentsandinnovationsastheeconomydevelops;
④Assumethatthevariousproductsprovidedbytheassessedunitcanadapttomarketdemand,theformulatedgoalsandmeasurescanbeachievedasscheduledandatthescheduledtime,andtheexpectedbenefitsareobtained;⑤Assumingthatinterestrates,exchangerates,taxbasesandtaxratesdonotchangesignificantlywithinthenormalrangeprescribedbythestate.
⑥Therecoverableamountoftheassetgroupandassetgroupcombinationisbasedonthefive-yearbudgetapprovedbythemanagementandcalculatedusingthecashflowforecastmethod.
(5)Thegoodwillimpairmentofeachassetgroupofthecompanyisasfollows:
TherecoverableamountofJiangxiKonkaisdeterminedaccordingtothepresentvalueoftheexpectedfuturecashflow.Thefuturecashflowisdeterminedbasedonthefinancialbudgetapprovedbymanagementfrom2021to2025,andusesadiscountrateof13.48%.JiangxiKonka’scashflowformorethan5yearsiscalculatedbasedonagrowthrateof0%.Thecompanyhiredanappraisalagency,BeijingZhongtianheAssetsAppraisalCo.,Ltd.,toevaluatethecompany’ssubsidiaryJiangxiKonkaCompanyusingtheincomemethodandcostmethod,usingthepresentvalueoftheassetgroup’sestimatedfuturecashflowsasitsrecoverableamount.On22March2021,KonkaGroupCo.,Ltd.'sAssetEvaluationReportonRecoverableAmountItemsofGoodwillAssetGroupofKonkaNewMaterialsAssetGroupforFinancialReportingPurposesafterGoodwillImpairmentTest(ZTHPZ[2021]No.90006),wasissuedwith31December2020asthebasedate.ThecurrentvalueofJiangxiKonkaAssetsGroupontheassessmentbasedateisRMB1,481,000,000,andthebookvalueoftheassetgroupafterfair
NotestotheFinancialStatementsofKonkaGroupCo.,Ltd.
FortheYearfrom1January2020to31December2020(allamountsinRMByuanunlessotherwisestated)
valueadjustment(includingoverallgoodwill)isRMB1,633,758,400ofwhichthebookvalueofgoodwill(convertedminorityshareholders)isRMB517,021,100.Astherecoverableamountoftheassetgroupislessthanthebookvalueoftheassetgroupcontaininggoodwill,JiangxiKonka’sgoodwillprovisionforassetimpairmentisRMB77,906,800inthecurrentperiod.TherecoverableamountofXingDaHongYeisdeterminedaccordingtothepresentvalueoftheexpectedfuturecashflow.Thefuturecashflowisdeterminedbasedonthefinancialbudgetapprovedbymanagementfrom2021to2025,andusesadiscountrateof13.50%.XingDaHongYe’scashflowformorethan5yearsiscalculatedbasedonagrowthrateof0%.TheCompanyhiredanappraisalagency,BeijingZhongtianheAssetsAppraisalCo.,Ltd.,toevaluatetheCompany’ssubsidiaryXingDaHongYeusingtheincomemethodandthecostmethod,usingthepresentvalueoftheassetgroup’sestimatedfuturecashflowsasitsrecoverableamount.On22March2021,KonkaGroupCo.,Ltd.'sAssetEvaluationReportonRecoverableAmountItemsofGoodwillAssetGroupofXingDaHongYeforFinancialReportingPurposesafterGoodwillImpairmentTest(ZTHPZ[2021]No.90007),wasissuedwith31December2020asthebasedate.ThecurrentvalueofXingDaHongYeonthebasedateisRMB2.95182million,andthebookvalueoftheassetgroupafterfairvalueadjustment(includingoverallgoodwill)isRMB338,240,700,ofwhichthebookvalueofgoodwill(minorityshareholdersincluded)isRMB86,581,700.Therecoverableamountoftheassetgroupislessthanthebookvalueoftheassetgroupcontaininggoodwill.Therefore,XingDaHongYeCompany'sgoodwillprovisionforassetimpairmentisRMB21.96millioninthisperiod.AlltheassetgroupsofAnhuiKonkathatcontaingoodwillhavebeendisposedof.Therefore,AnhuiKonka’sgoodwillprovisionforassetimpairmentisRMB3,597,700inthecurrentperiodandtreatthegoodwillasdecrease.TherecoverableamountofEconTechnologyisdeterminedaccordingtothepresentvalueoftheexpectedfuturecashflow.Thefuturecashflowisdeterminedbasedonthefinancialbudgetapprovedbymanagementfrom2021to2025,andusesadiscountrateof13.68%.EconTechnology’scashflowformorethan5yearsiscalculatedbasedonagrowthrateof0%.Thecompanyhiredanappraisalagency,BeijingZhongtianheAssetsAppraisalCo.,Ltd.,toevaluatethecompany’ssubsidiaryEconTechnologyusingtheincomemethod,usingthepresentvalueoftheassetgroup’sestimatedfuturecashflowsasitsrecoverableamount.On22March2021,KonkaGroupCo.,Ltd.'sAssetEvaluationReportonRecoverableAmountItemsofGoodwillAssetGroupofEconTechnologyforFinancialReportingPurposesafterGoodwillImpairmentTest(ZTHPZ[2021]No.90008),wasissuedwith31December2020asthebasedate.ThecurrentvalueofEconTechnologyAssetsGroupontheassessmentbasedateisRMB989,000,000,andthebookvalueoftheassetgroupafterfairvalueadjustment(includingoverallgoodwill)isRMB929,908,300ofwhichthebookvalueofgoodwill(convertedminorityshareholders)isRMB
917,304,200.Therecoverableamountoftheassetgroupismorethanthebookvalueoftheassetgroupcontaininggoodwill.Therefore,EconTechnologyhaspassedthegoodwillimpairmenttest,andthereisnoimpairmentprovision.
22.Long-termDeferredExpenses
| Item | Beginningbalance | Increased | Amortizationamount | Otherdecreasedamount | Endingbalance |
| Renovationcosts | 35,841,835.32 | 74,298,710.43 | 17,050,791.01 | 167,517.29 | 92,922,237.45 |
| Shoppeexpense | 44,140,602.62 | 26,144,987.84 | 29,972,968.23 | 15,633,992.77 | 24,678,629.46 |
| Others | 27,607,640.94 | 51,456,808.36 | 40,693,905.40 | 2,772,847.99 | 35,597,695.91 |
| Total | 107,590,078.88 | 151,900,506.63 | 87,717,664.64 | 18,574,358.05 | 153,198,562.82 |
23.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)DeferredIncomeTaxAssetswithoutOffset
| Item | Endingbalance | Beginningbalance | ||
| Deductibletemporarydifference | Deferredincometaxliabilitiesassets | Deductibletemporarydifference | Deferredincometaxliabilitiesassets | |
| Deductiblelosses | 3,454,342,497.93 | 765,781,935.91 | 2,855,624,412.76 | 706,342,740.49 |
| Assetsimpairmentprovision | 1,672,345,584.63 | 355,173,623.87 | 1,079,890,030.44 | 231,517,239.58 |
| DeferredIncome | 302,984,312.52 | 75,408,820.37 | 66,778,170.56 | 15,971,309.52 |
| Accruedexpenses | 206,844,865.32 | 40,844,897.61 | 70,273,842.14 | 12,047,558.72 |
| Unrealizedinternalsalesprofits | 37,257,399.14 | 9,068,649.87 | 18,570,975.99 | 4,642,744.00 |
| Others | 90,902,865.84 | 19,638,509.76 | 75,254,629.43 | 17,241,589.86 |
| Total | 5,764,677,525.38 | 1,265,916,437.39 | 4,166,392,061.32 | 987,763,182.17 |
(2)ListsofDeferredIncomeTaxLiabilitieswithoutOffset
| Item | Endingbalance | Beginningbalance | ||
| Taxabletemporarydifference | DeferredincometaxliabilitiesLiability | Taxabletemporarydifference | DeferredincometaxliabilitiesLiability | |
| Estimatedaddedvalueofassetsnotunderthesamecontrol | 303,689,567.68 | 57,097,842.23 | 406,494,736.72 | 76,293,954.88 |
| Prepaidinterest | 48,578,683.63 | 11,840,140.77 | 68,199,141.94 | 16,489,202.46 |
| Accelerateddepreciationoffixedassets | 4,443,598.64 | 959,974.66 | 3,732,276.80 | 559,841.52 |
| Others | 27,585,930.42 | 5,921,274.27 | 8,496,388.76 | 2,124,097.19 |
| Total | 384,297,780.37 | 75,819,231.93 | 486,922,544.22 | 95,467,096.05 |
(3)ListofUnrecognizedDeferredIncomeTaxAssets
| Item | Endingbalance | Beginningbalance |
| Deductiblelosses | 1,526,406,964.50 | 2,693,777,327.44 |
| Deductibletemporarydifference | 766,691,485.59 | 407,628,243.69 |
| Total | 2,293,098,450.09 | 3,101,405,571.13 |
(4)Deductiblelossoftheunrecognizeddeferredincometaxassetswillbedueinthefollowingyears
| Year | Endingbalance |
| 2021 | 375,609,938.04 |
| 2022 | 333,312,677.24 |
| 2023 | 146,623,243.29 |
| 2024 | 165,757,234.71 |
| 2025 | 505,103,871.22 |
| Total | 1,526,406,964.50 |
24.OtherNon-currentAssets
| Item | Endingbalance | ||
| Carryingamount | Impairmentprovision | Carryingvalue | |
| Prepaymentforland-purchase | 1,538,728,032.15 | 1,538,728,032.15 | |
| Prepaidamountforengineering,equipmentandotherlong-termassets | 247,719,684.59 | 247,719,684.59 | |
| Entrustedloans | 10,867,888.84 | 10,867,888.84 | |
| Constructionofgovernmentprojects | 23,463,565.16 | 23,463,565.16 | |
| Total | 1,820,779,170.74 | 1,820,779,170.74 | |
(Continued)
| Item | Beginningbalance | ||
| Carryingamount | Impairmentprovision | Carryingvalue | |
| Prepaymentforland-purchase | 820,340,528.30 | 820,340,528.30 | |
| Prepaidamountforengineering,equipmentandotherlong-termassets | 277,656,830.39 | 277,656,830.39 | |
| Entrustedloans | 40,000,000.00 | 40,000,000.00 | |
| Constructionofgovernmentprojects | 34,475,365.16 | 34,475,365.16 | |
| Total | 1,172,472,723.85 | 1,172,472,723.85 | |
25.Short-termBorrowings
| Item | Endingbalance | Beginningbalance | Description |
| Unsecuredborrowings | 7,164,301,258.30 | 7,305,280,566.00 | |
| Borrowingssecuredbyguarantee | 2,038,705,892.75 | 1,505,320,018.29 | ①②③ |
| Borrowingssecuredbycollateral | 1,787,543,324.73 | 1,522,086,655.34 | ④⑤⑥⑦⑧⑨⑩???? |
| Total | 10,990,550,475.78 | 10,332,687,239.63 |
Notes:
①TheCompanyprovidesjointliabilityguaranteesforitssubsidiaryAnhuiKonka,DongguanKonka,SichuanKonka,AnhuiTongchuang,PengrunTechnology,ElectronicsTechnology,EconTechnology,KongKongKonka,JiangxiKonka,NanoCrystallizedGlass,XinfengMicrocrystallineandNingboKanghanruiAppliancesforatotalofRMB1,477,297,053.28.②TheCompanyobtainedashort-termloanofRMB500,000,000.00fromChegongmiaoSub-branchofChinaEverbrightBank,undermaximumjointliabilityguaranteeprovidedbyElectronicsTechnology,asubsidiaryoftheCompany.③TheCompanyprovidedamaximum-amountjoint-liabilityguaranteeforashort-termborrowingofRMB61,408,839.47grantedbytheYantaisub-branchofIndustrialBanktotheCompany’ssubsidiaryEconTechnology.
④TheCompanyputbankdepositsofRMB81,839,066.89inpledgeforashort-termborrowingofRMB157,135,000.00andbankacceptancenotesofRMB69,398,133.78fromChinaZheshangBank.
⑤TheCompanyputcertificatesofdepositofRMB200,000,000.00inpledgeforashort-termborrowingofRMB199,778,333.33fromtheShenzhenbranchofChinaEverbrightBank.
⑥TheCompanyputsecuritydepositsofRMB150,000,000.00inpledgeforashort-termborrowingofRMB297,933,333.35fromtheShenzhenbranchofGuangdongHuaxingBank.
⑦TheCompanyputstructureddepositsofRMB289,160,000.00inpledgeforashort-termborrowingofRMB298,377,374.45fromXiamenInternationalBank.⑧TheCompany’ssubsidiaryElectronicTechnologyputstructureddepositsofRMB310,000,000.00inpledgeforashort-termborrowingofRMB318,033,786.31fromXiamenInternationalBank.
⑨TheCompany’ssubsidiaryAnhuiTongchuangputsecuritydepositsofRMB15,000,000.00andnotesreceivableofRMB100,800,000inpledgeforashort-termborrowingofRMB137,655,744.43fromtheHefeibranchofChinaZheshangBank.⑩TheCompany’ssubsidiaryEconTechnologyputRMB75,000,000.00inpledgeforashort
termborrowingofRMB148,629,752.86fromtheYantaibranchofChinaZheshangBank,withtheCompanyprovidingthejoint-liabilityguarantee.?TheCompany’ssubsidiaryXingDaHongYeobtainedashort-termloanofRMB95,000,000.00fromtheZhongshanRuralCommercialBankusing,bycreatingapledgeontimedepositcertificateswithabookvalueofRMB19,800,000.00andonamortgageonbuildingsofRMB40,867,928.18andlanduserightsofRMB14,517,613.34.HuZehongprovidedjointliabilityguaranteefortheloan.?TheCompany’ssubsidiaryBoluoKonkaPrecisionobtainedashort-termloanofRMB5,000,000.00fromGuangzhouBankCo.,Ltd.HuizhouBranchwiththerealestateofBoluoKonkawiththebookvalueofRMB7,526,113.83andlanduserightsofRMB1,113,084.13ascollateral.KonkaGroupprovidesjointliabilityguarantee.?TheCompany’ssubsidiaryAnhuiKonkaobtainedashort-termloanofRMB80,000,000.00fromChuzhouBranchofBankofChinabycreatingmortgageonlanduserightwithabookvalueofRMB55,952,866.67andongoingprojectsworthRMB328,756,028.19.TheCompanyprovidedjointliabilityguaranteefortheloan.?TheCompany’ssubsidiaryAnhuiTongchuangobtainedashort-termloanofRMB50,000,000.00fromChinaZheshangBankHefeiBranchwithamortgageonrealestatewithabookvalueofRMB154,681,545.21andcollateralonlanduserightworthRMB18,920,247.71.
26.NotesPayable
| Category | Endingbalance | Beginningbalance |
| Bank’sacceptancebill | 1,159,251,569.31 | 1,136,168,273.60 |
| Commercialacceptancebill | 176,735,456.90 | 183,228,100.77 |
| Total | 1,335,987,026.21 | 1,319,396,374.37 |
27.AccountsPayable
(1)ListofAccountsPayable
| Item | Endingbalance | Beginningbalance |
| Within1year | 8,134,924,659.58 | 4,589,056,681.97 |
| Item | Endingbalance | Beginningbalance |
| 1to2years | 1,279,766,515.39 | 1,000,925,754.57 |
| 2to3years | 87,184,184.40 | 165,360,015.84 |
| Over3years | 130,490,966.39 | 42,480,027.22 |
| Total | 9,632,366,325.76 | 5,797,822,479.60 |
(2)SignificantAccountsPayableAgingoverOneYear
| Item | Endingbalance | Unpaid/Un-carry-overreason |
| HunanFifthEngineeringCo.Ltd | 592,728,404.31 | Notmeetthesettlementconditions |
| ChinaRailwayNo.4EngineeringGroupCo.,Ltd. | 305,090,587.47 | Notmeetthesettlementconditions |
| ChongqingJiulongKuiguanBuildingMaterialsCo.,Ltd. | 115,552,377.45 | Notmeetthesettlementconditions |
| HenanYaofengIndustrialCo.,Ltd. | 98,891,330.28 | Notmeetthesettlementconditions |
| RushanWaterGroupCo.,Ltd. | 99,558,100.00 | Notmeetthesettlementconditions |
| Total | 1,211,820,799.51 | — |
28.Contractualliabilities
(1)DetailsofContractualliabilities
| Item | Endingbalance | Beginningbalance |
| Salesadvancesreceived | 1,217,367,735.94 | 959,538,151.80 |
| Total | 1,217,367,735.94 | 959,538,151.80 |
(2)Thereisnosignificantchangeincarryingamountofcontractualliabilitiesinthecurrentperiod
29.PayrollPayable
(1)ListofPayrollPayable
| Item | Beginningbalance | Increased | Decreased | Endingbalance |
| ListofShort-termSalary | 422,361,193.20 | 1,772,852,908.34 | 1,722,013,304.70 | 473,200,796.84 |
| Post-employmentbenefit-definedcontributionplans | 3,408,038.58 | 68,338,032.86 | 69,462,795.62 | 2,283,275.82 |
| Terminationbenefits | 1,101,266.80 | 39,874,526.02 | 39,843,621.03 | 1,132,171.79 |
| Currentportionofotherbenefits | - | - | - | - |
| Total | 426,870,498.58 | 1,881,065,467.22 | 1,831,319,721.35 | 476,616,244.45 |
(2)ListofShort-termSalary
| Item | Beginningbalance | Increased | Decreased | Endingbalance |
| Salary,bonus,allowance,subsidy | 407,335,502.77 | 1,568,242,877.25 | 1,517,512,854.56 | 458,065,525.46 |
| Welfareforemployees | 5,147,293.66 | 59,180,912.56 | 63,324,920.30 | 1,003,285.92 |
| Socialsecuritiesexpense | 3,211,419.29 | 47,645,814.91 | 45,969,544.25 | 4,887,689.95 |
| Ofwhich:Medicalinsurancepremiums | 289,685.48 | 42,276,867.29 | 41,308,977.99 | 1,257,574.78 |
| Work-relatedinjuryinsurance | 39,991.73 | 977,895.80 | 930,601.24 | 87,286.29 |
| Maternityinsurance | 2,881,742.08 | 4,391,051.82 | 3,729,965.02 | 3,542,828.88 |
| Housingfund | 604,087.40 | 51,740,892.25 | 50,850,048.27 | 1,494,931.38 |
| Laborunionbudgetandemployeeeducationbudget | 5,237,407.88 | 12,986,389.12 | 10,940,610.59 | 7,283,186.41 |
| Item | Beginningbalance | Increased | Decreased | Endingbalance |
| Short-termabsencewithpayment | ||||
| Short-termprofitsharingplan | ||||
| Others | 825,482.20 | 11,751,566.42 | 12,110,870.90 | 466,177.72 |
| Total | 422,361,193.20 | 1,751,548,452.51 | 1,700,708,848.87 | 473,200,796.84 |
(3)ListofDefinedContributionPlan
| Item | Beginningbalance | Increased | Decreased | Endingbalance |
| Basicpensionbenefits | 3,353,470.05 | 66,664,960.26 | 67,851,155.26 | 2,167,275.05 |
| Unemploymentinsurance | 54,568.53 | 1,672,701.23 | 1,611,640.36 | 115,629.40 |
| Annuity | 371.37 | 371.37 | ||
| Total | 3,408,038.58 | 68,338,032.86 | 69,462,795.62 | 2,283,275.82 |
30.TaxesPayable
| Item | Endingbalance | Beginningbalance |
| Corporateincometax | 264,749,734.19 | 341,818,196.88 |
| VAT | 186,891,111.62 | 197,795,056.62 |
| Fundfordisposingabandonedappliancesandelectronicproducts | 19,157,745.00 | 22,862,428.00 |
| Urbanmaintenanceandconstructiontax | 10,206,690.62 | 12,363,121.25 |
| EducationfeesandlocaleducationSurcharge | 7,361,219.22 | 9,346,458.05 |
| Stampduty | 6,041,179.34 | 5,046,657.96 |
| Landusetax | 5,095,730.68 | 3,587,908.55 |
| Individualincometax | 3,023,518.75 | 7,468,808.32 |
| Propertytax | 2,209,076.63 | 2,868,061.86 |
| Tariff | 2,008,914.61 | 2,440,099.93 |
| Others | 1,469,138.50 | 2,248,497.57 |
| Item | Endingbalance | Beginningbalance |
| Total | 508,214,059.16 | 607,845,294.99 |
31.Otherpayables
| Item | Endingbalance | Beginningbalance |
| Interestpayable | 220,837,380.17 | 227,831,108.53 |
| OtherPayables | 1,778,593,519.52 | 2,053,341,998.25 |
| Total | 1,999,430,899.69 | 2,281,173,106.78 |
31.1.Interestspayable
(1)Classification
| Item | Endingbalance | Beginningbalance |
| Interestoncorporatebonds | 180,268,944.49 | 180,268,944.49 |
| Interestonlong-termborrowingswithinterestpaidbyinstallmentandprincipalpaidatmaturity | 17,162,676.76 | 27,783,745.85 |
| Interestpayableonshort-termborrowings | 23,350,524.40 | 19,189,933.23 |
| Others | 55,234.52 | 588,484.96 |
| Total | 220,837,380.17 | 227,831,108.53 |
31.2Otherpayables
(1)ListedbyNatureofAccount
| Item | Endingbalance | Beginningbalance |
| Expensespayable | 626,909,820.31 | 854,281,815.33 |
| Come-and-gomoney | 330,967,783.33 | 162,935,213.66 |
| Equitytransferpayment | 157,682,796.96 | 374,725,896.96 |
| Relatedpartyborrowing | 344,520,800.92 | 374,227,833.11 |
| moneyGenerationofadvances | 243,197,538.56 | 260,078,756.86 |
| Cashdepositandfront | 7,795,410.38 | 13,789,615.70 |
| Others | 67,519,369.06 | 13,302,866.63 |
| Total | 1,778,593,519.52 | 2,053,341,998.25 |
(2)OtherSignificantPayablesAgingoverOneYear
| Item | Endingbalance | Unpaid/Un-carry-overreason |
| EquitytransfermoneyofEconTechnology | 96,500,000.00 | Notmeetthesettlementconditions |
| EquitytransfermoneyofJiangxiKonka | 61,180,000.00 | Notmeetthesettlementconditions |
| Total | 157,680,000.00 | — |
32.CurrentPortionofNon-currentLiabilities
| Item | Endingbalance | Beginningbalance |
| Currentportionoflong-termborrowings | 18,150,000.00 | 123,000,000.00 |
| Currentportionoflong-termpayables | 358,746,566.29 | 87,066,077.13 |
| Total | 376,896,566.29 | 210,066,077.13 |
33.Othercurrentliabilities
| Item | Endingbalance | Beginningbalance |
| Accountspayablewithtradeacceptancenotes | 432,420,000.00 | |
| Salesreturnpayable | 9,354,317.23 | 16,726,801.27 |
| Total | 441,774,317.23 | 16,726,801.27 |
34.Long-termBorrowings
(1)Classification
| Item | Endingbalance | Beginningbalance | Description |
| Guaranteedborrowings | 2,058,000,000.00 | ①、② | |
| Pledgeborrowings | 3,123,838,997.54 | 1,556,255,729.90 | ③、④、⑤、⑥、⑦、⑧、⑨、⑩、?、? |
| Entrustedborrowings | 611,060,000.00 | 3,334,060,000.00 | ? |
| Creditloan | 190,000,000.00 | 123,000,000.00 | |
| Less:Currentportion | 18,150,000.00 | 123,000,000.00 | |
| Total | 5,964,748,997.54 | 4,890,315,729.90 |
Notes:
①TheCompanyobtainedalong-termloanofRMB2,000,000,000.00fromtheExport-ImportBankofChina,withaloantermfrom22June2020to24June2022.OCTGroup,theparentoftheCompanyprovidesjointliabilityguaranteefortheloan.②SubsidiaryXingDaHongYeobtainedalong-termloanofRMB58,000,000.00fromtheXiamenInternationalBank,withaloantermfrom25November2020to25February2022.TheCompanyprovidesmaximumjointliabilityguaranteefortheloan.
③DonggangKangrun,asubsidiary,tooktheaccountsreceivableundertheContractofthePPPprojectofDonggangCityInlandComprehensiveTreatmentProjectasapledgetoobtainalong-termloanofRMB600,000,000.00fromtheChinaConstructionBankDonggangSub-branch.Theloanperiodisfrom31January2019to30January2036.④SubsidiaryFunanKangrunobtainedalong-termloanofRMB465,000,000.00fromtheAgriculturalDevelopmentBankofChinaFunanCountySub-branchwiththefeasibilitygapsubsidyandgovernmentpaymentunderthePPPprojectofthewholeareasewagetreatmentprojectofFunanCounty<PPPcontract>aspledge.Theloanperiodisfrom30August2019to22August2039.⑤WeifangSihai,asubsidiaryofthecompany,pledgedthelong-termloanamountofRMB512,746,900.00fromIndustrialBankCo.,Ltd.WeifangBranchwiththeaccountsreceivableformedfromalltheproceedsandincomerightsoftheWeifangBinhaiEconomicDevelopmentZonePPPproject.Theloanperiodisfrom26June2019to25June2035.
⑥SubsidiaryLaizhouLairunobtainedalong-termloanofRMB118,007,485.22fromLaizhouBranchofPostalSavingsBankofChina,bypledgingitstheaccountsreceivablefromalltheproceedsandrighttoproceedsunderthecontractinrelationtothePPPprojectofLaizhouSecondSewageTreatmentPlantandsupplementaryagreementsthereto.Theloantermisfrom17January2020to16January2040.
NotestotheFinancialStatementsofKonkaGroupCo.,Ltd.
FortheYearfrom1January2020to31December2020(allamountsinRMByuanunlessotherwisestated)
⑦SubsidiaryEconTechnologyprovidesacommitmentletterofbalancecomplementforWuhanRunyuanwhenWuhanRunyuanobtainsalong-termloanofRMB378,600,000.00fromWuhanDongxihuDistrictSub-branchofAgriculturalDevelopmentBankofChinabypledgingitsaccountsreceivableunderthecontractinconnectionwithHuanglingDistrictRuralSewageTreatmentPPPProject.Theloantermisfrom22January2020to19January2040.⑥SubsidiaryEconTechnologyprovidesjointliabilityguaranteeforSubeiKangrunwhenSubeiKangrunobtainsalong-termloanofRMB516,000,000.00fromDunhuangSub-branchofAgriculturalDevelopmentBankofChinabypledgingitsaccountsreceivableunderthecontractinconnectionwiththeMazongshanwatersupplyPPPproject,inSubeiMongolAutonomousCounty,Gansu.Theloantermisfrom10March2020to9March2035.⑨SubsidiaryRushanEconpledgeditslong-termaccountsreceivablewithabookvalueofRMB351,107,041.45toobtainalong-termloanofRMB115,810,000.00fromYantaiEconomicDevelopmentZoneSub-branchofChinaEverbrightBank.Theloantermisfrom29December2016to28December2026,andthesubsidiaryEconTechnologyprovidesjointliabilityguarantee.⑩SubsidiaryDayiKangrunWaterobtainedalong-termloanofRMB188,700,000.00fromChengduQinglongSub-branchofIndustrialandCommercialBankofChinabypledgingitsrighttoRMB1,000,000,000.00yieldsfromtheoperationoftheDayiIndustrialSewageandRecycledWaterTreatmentPlantunderfranchise.Theloantermisfrom29April2020to10April2035,andthesubsidiaryEconTechnologyprovidesacommitmentletterofbalancecomplement.?OCTGroup,theparentoftheCompany,issuedanentrustedloanofRMB611,060,000.00totheCompanythroughtheChinaMerchantsBank.Theloantermisfrom12November2020to9December2022.?Thecompanyobtainedalong-termloanofRMB12,897,4612.32fromShenzhenBranchofGuangdongHuaxingBankCo.,Ltd.withthebookvalueofRMB187,546,621.37andtherighttousestate-ownedconstructionlandofRMB13,735,772.90ascollateral.TheloantermisfromApril12,2019toApril11,2024.?SubsidiarySichuanKonkaobtainanentrustedborrowingofRMB100,000,000.00fromSichuanGangrongInvestmentDevelopmentGroupCo.,Ltd.underthepledgeonthelanduserightofsubsidiaryYibinKonkaHi-TechIndustrialParkwithabookvalueofRMB
13,532,751.06.ThesubsidiaryCommunicationTechnologyprovidedjointliabilityguaranteefortheloan.Thelifeofloanwasfrom8May2018to24May2025.
35.BondsPayable
(1)ListofBondsPayable
| Item | Endingbalance | Beginningbalance |
| Non-publicofferingcorporatebonds | 4,993,212,788.32 | 4,987,709,643.64 |
| Total | 4,993,212,788.32 | 4,987,709,643.64 |
(2)Increase/DecreaseofBondsPayable
| Bondsname | Totalparvalue | Issuingdate | Duration | Issuingamount | Beginningbalance |
| 19Konka01(note①) | 1,000,000,000.00 | 2019-1-14 | 2+1years | 996,500,000.00 | 997,798,742.17 |
| 19Konka02(note②) | 1,500,000,000.00 | 2019-1-14 | 3 | 1,494,750,000.00 | 1,496,698,113.21 |
| 19Konka03(note③) | 500,000,000.00 | 2019-6-3 | 2+1years | 498,250,000.00 | 498,670,073.37 |
| 19Konka04(note④) | 500,000,000.00 | 2019-6-3 | 3 | 498,250,000.00 | 498,670,073.37 |
| 19Konka05(note⑤) | 800,000,000.00 | 2019-7-22 | 2+1years | 797,200,000.00 | 797,798,742.14 |
| 19Konka06(note⑥) | 700,000,000.00 | 2019-7-22 | 3 | 697,550,000.00 | 698,073,899.38 |
| Total | 5,000,000,000.00 | — | — | 4,982,500,000.00 | 4,987,709,643.64 |
(Continued)
| Bondsname | IssuedduringtheReportingPeriod | Withdrawinterestatfacevalue | Amortizationofpremiumanddiscount | RepayduringtheReportingPeriod | Endingbalance |
| Bondsname | IssuedduringtheReportingPeriod | Withdrawinterestatfacevalue | Amortizationofpremiumanddiscount | RepayduringtheReportingPeriod | Endingbalance |
| 19Konka01(note①) | 50,000,000.00 | 1,100,628.96 | 998,899,371.13 | ||
| 19Konka02(note②) | 75,000,000.00 | 1,650,943.44 | 1,498,349,056.65 | ||
| 19Konka03(note③) | 22,500,000.00 | 550,314.48 | 499,220,387.85 | ||
| 19Konka04(note④) | 23,500,000.00 | 550,314.48 | 499,220,387.85 | ||
| 19Konka05(note⑤) | 36,240,000.00 | 880,503.12 | 798,679,245.26 | ||
| 19Konka06(note⑥) | 32,900,000.00 | 770,440.20 | 698,844,339.58 | ||
| Total | 240,140,000.00 | 5,503,144.68 | 4,993,212,788.32 |
Note1:
①On14January2019,RMB1billionofprivateplacementcorporatebondswasissuedwiththedurationoftwoplusoneyears,theannualinterestrateof5.00%andtheduedateof14January2021.
②On14January2019,RMB1.5billionofprivateplacementcorporatebondswasissuedwiththedurationofthreeyears,theannualinterestrateof5.00%andtheduedateof14January2022.
③On3June2019,RMB0.5billionofprivateplacementcorporatebondswasissuedwiththedurationoftwoplusoneyears,theannualinterestrateof4.50%andtheduedateof3June2021.④On15January2019,RMB0.5billionofprivateplacementcorporatebondswasissuedwiththedurationofthreeyears,theannualinterestrateof4.70%andtheduedateof3June2022.
⑤On22July2019,RMB0.8billionofprivateplacementcorporatebondswasissuedwiththedurationoftwoplusoneyears,theannualinterestrateof4.53%andtheduedateof22July2021.
⑥On22July2019,RMB0.7billionofprivateplacementcorporatebondswasissuedwiththedurationofthreeyears,theannualinterestrateof4.70%andtheduedateof22July2022.Note2:OCTGroupprovidedfull-amount,unconditionalandirrevocablejointandseveral
liabilityguaranteefortheduepaymentoftheprivateofferingofcorporatebonds.
36.Long-termPayables
| Item | Endingbalance | Beginningbalance |
| Accruedfinancingleaseoutlay | 921,958,930.55 | 519,416,941.74 |
| Ofwhich:unrecognizedfinancingexpense | 81,802,514.30 | 49,063,759.99 |
| Less:Currentportion | 358,746,566.29 | 87,066,077.13 |
| Total | 481,409,849.96 | 383,287,104.62 |
37.Long-termPayrollPayableClassification
| Item | Endingbalance | Beginningbalance |
| Terminationbenefits-netliabilitiesofdefinedcontributionplans | 5,248,309.14 | 5,565,646.72 |
| Total | 5,248,309.14 | 5,565,646.72 |
38.Provisions
| Item | Endingbalance | Beginningbalance | Reasonforformation |
| Productqualityassurance | 102,146,976.40 | 93,114,136.42 | After-salesofhouseholdappliances |
| Others | 206,591.51 | 206,591.51 | |
| Total | 102,353,567.91 | 93,320,727.93 |
39.DeferredIncome
(1)CategoryofDeferredIncome
| Item | Beginningbalance | Increased | Decreased | Endingbalance | Reasonforformation |
| Governmentsubsidies | 151,874,258.45 | 331,672,713.46 | 36,646,447.27 | 446,900,524.64 | Asset-related/incomerelated |
| Total | 151,874,258.45 | 331,672,713.46 | 36,646,447.27 | 446,900,524.64 |
(2)Governmentsubsidy
| ListofGovernmentSubsidy | Beginningbalance | Newamountintheperiod | Amountchargedtonon-operatingincomeintheperiod | Amountchargedtootherincomeintheperiod | Otherchanges | Endingbalance | Asset/income-related |
| SubsidyforconstructionofYibinfactoryofYibinKonkaIndustrialPark | 56,943,815.54 | 16,035,384.46 | 72,979,200.00 | Asset-related | |||
| SubsidyforDualHDROLEDSmartTVR&Dandindustrialization | 13,300,000.00 | 13,300,000.00 | Asset-related |
| ListofGovernmentSubsidy | Beginningbalance | Newamountintheperiod | Amountchargedtonon-operatingincomeintheperiod | Amountchargedtootherincomeintheperiod | Otherchanges | Endingbalance | Asset/income-related |
| project | |||||||
| SubsidyforthesmartTVindustrialchainprojectofKonkaGroupCo.,Ltd. | 10,860,500.00 | 4,494,000.00 | 6,366,500.00 | Asset-related | |||
| OperatingsubsidyforKonkaZhifuLifeScienceInnovationCenterproject | 6,500,000.14 | 1,999,999.92 | 4,500,000.22 | Asset-related | |||
| SubsidyforKonkaYibinIntelligentTerminalInnovationCenterIncubationProject | 6,000,000.00 | 6,000,000.00 | Asset-related | ||||
| Subsidyfor2017ShenzhenIndustrialChainWeakLinksInvestmentProject | 4,500,000.00 | 4,500,000.00 | Asset-related | ||||
| Subsidyforsupportingthenext-generationInternetintelligentterminalsystemdevelopmentand | 3,798,349.54 | 1,981,747.56 | 1,816,601.98 | Asset-related |
| ListofGovernmentSubsidy | Beginningbalance | Newamountintheperiod | Amountchargedtonon-operatingincomeintheperiod | Amountchargedtootherincomeintheperiod | Otherchanges | Endingbalance | Asset/income-related |
| productionproject | |||||||
| SubsidyforKonkasmarthomecloudsmartcontrolplatformconstructionproject | 2,896,000.04 | 2,896,000.04 | Asset-related | ||||
| CapitalsubsidyforShenzhenEconomyandTradeandInformatizationCommittee2015ShenzhenIndustrialDesignCenter | 2,550,000.00 | 1,276,000.02 | 1,273,999.98 | Asset-related | |||
| SubsidyforKonkanext-generationmulti-mediaterminaltechnologyengineeringlabproject | 2,500,000.10 | 999,999.96 | 1,500,000.14 | Asset-related | |||
| Postgrantfor2016IndustrialEnterpriseTechnologicalRenovation | 2,187,360.00 | 546,840.00 | 1,640,520.00 | Asset-related | |||
| Subsidyfor | 2,184,000.00 | 819,000.00 | 1,365,000.00 | Asset-related |
| ListofGovernmentSubsidy | Beginningbalance | Newamountintheperiod | Amountchargedtonon-operatingincomeintheperiod | Amountchargedtootherincomeintheperiod | Otherchanges | Endingbalance | Asset/income-related |
| NB-IOT-baseddisplayterminalsmartfactorynewmodelproject | |||||||
| Subsidyfordevelopmentandindustrializationofdigitalproductsthatarecollaborativeandconnected | 2,080,000.04 | 519,999.96 | 1,560,000.08 | Asset-related | |||
| Subsidyfornext-generationhouseholdmulti-mediaterminaltechnologyengineeringlabimprovementproject | 2,000,000.00 | 2,000,000.00 | Asset-related | ||||
| Subsidyfor8Kequipmentend-to-endsignalconnectionkeytechnologyandterminaldisplayproductR&Dproject | 1,800,000.00 | 1,800,000.00 | Asset-related | ||||
| SubsidyforveinR&Dcenterproject | 1,750,000.00 | 1,750,000.00 | Asset-related |
NotestotheFinancialStatementsofKonkaGroupCo.,Ltd.
FortheYearfrom1January2020to31December2020(allamountsinRMByuanunlessotherwisestated)
| ListofGovernmentSubsidy | Beginningbalance | Newamountintheperiod | Amountchargedtonon-operatingincomeintheperiod | Amountchargedtootherincomeintheperiod | Otherchanges | Endingbalance | Asset/income-related |
| SpecificsubsidyformobileInternet4th-generationmobilecommunicationindustrialization | 1,734,662.37 | 412,490.04 | 1,322,172.33 | Asset-related | |||
| SubsidyforIGRS-basedinformationterminalR&Dandindustrializationproject | 1,400,000.00 | 1,400,000.00 | Asset-related | ||||
| 2017provincialmajorspecificsubsidy | 1,400,000.00 | 480,000.00 | 920,000.00 | Asset-related | |||
| Subsidyforbigdatamining-baseduseroperationsystemR&Dandindustrializationproject | 1,320,000.00 | 1,320,000.00 | Asset-related | ||||
| SubsidyforAVS/DRA-basedterminalandsupportingcorechipR&Dproject | 1,311,333.18 | 1,311,333.18 | Asset-related | ||||
| Subsidyfortruethree-dimensionalvideo | 1,277,999.98 | 284,000.04 | 993,999.94 | Asset-related |
| ListofGovernmentSubsidy | Beginningbalance | Newamountintheperiod | Amountchargedtonon-operatingincomeintheperiod | Amountchargedtootherincomeintheperiod | Otherchanges | Endingbalance | Asset/income-related |
| continualviewpointreal-timeintegrationandadvancetestingproject | |||||||
| Subsidyformodulewhole-machineintegrationproject | 1,275,000.00 | 300,000.00 | 975,000.00 | Asset-related | |||
| SubsidyformobileintelligentterminalnewapplicationservicesystemR&Dandindustrializationproject | 1,265,783.60 | 727,279.92 | 538,503.68 | Asset-related | |||
| SubsidyforspecialdecorationofHuiqiflagshipstoreofShenzhenInternationalConsumerElectronicsExchange/ExhibitionCenterCo.,Ltd. | 1,200,000.00 | 1,200,000.00 | Asset-related | ||||
| SpecificsubsidyforDongguanFiscalProvincial-levelstrategicemergingindustries | 1,200,000.00 | 600,000.00 | 600,000.00 | Asset-related |
| ListofGovernmentSubsidy | Beginningbalance | Newamountintheperiod | Amountchargedtonon-operatingincomeintheperiod | Amountchargedtootherincomeintheperiod | Otherchanges | Endingbalance | Asset/income-related |
| Subsidyforsuper-shortfocuslaserprojectingsmartTVR&Dproject | 1,075,000.00 | 935,000.00 | 140,000.00 | Asset-related | |||
| Subsidyforbuilt-inoperationsystemforTVapplicationR&Dproject | 1,033,110.10 | 459,159.96 | 573,950.14 | Asset-related | |||
| Subsidyforsecureandreliablechip-basedsatellitegroundreceiverproject | 1,000,000.00 | 1,000,000.00 | Asset-related | ||||
| CentralinfrastructureinvestmentbudgetarysubsidyforpreliminaryworkofPPPproject | 1,000,000.00 | 1,000,000.00 | Asset-related | ||||
| 2016GuangdongProvinceenterpriseresearchanddevelopmentprovincialfiscalsubsidy | 916,879.90 | 229,217.73 | 687,662.17 | Asset-related | |||
| 2010-2012industrialtechnologyspecific | 840,000.00 | 420,000.00 | 420,000.00 | Asset-related |
| ListofGovernmentSubsidy | Beginningbalance | Newamountintheperiod | Amountchargedtonon-operatingincomeintheperiod | Amountchargedtootherincomeintheperiod | Otherchanges | Endingbalance | Asset/income-related |
| subsidy | |||||||
| SubsidyformobileintelligentterminalinformationsecuritysystemkeytechnologyR&Dproject | 835,187.04 | 480,000.00 | 355,187.04 | Asset-related | |||
| Specificsubsidyforbusinessrestructuring | 799,999.80 | 200,000.04 | 599,999.76 | Asset-related | |||
| 2018AnhuiProvinceroboticsspecificsubsidy | 780,000.00 | 180,000.00 | 600,000.00 | Asset-related | |||
| Subsidyfordual-channelnew3DsmartTVR&Dandindustrializationproject | 778,166.79 | 405,999.96 | 372,166.83 | Asset-related | |||
| Postfiscalsubsidyfor2016industrialenterprisetechnologicalrenovation | 733,480.08 | 183,369.96 | 550,110.12 | Asset-related | |||
| Subsidyformultipleviewpointhigh-definitionnuke-eye | 675,000.00 | 300,000.00 | 375,000.00 | Asset-related |
| ListofGovernmentSubsidy | Beginningbalance | Newamountintheperiod | Amountchargedtonon-operatingincomeintheperiod | Amountchargedtootherincomeintheperiod | Otherchanges | Endingbalance | Asset/income-related |
| 3DsmartLCDTVproject | |||||||
| Subsidyfornewman-machineinteractionsmartTVR&Dandindustrializationproject | 525,689.15 | 525,689.15 | Asset-related | ||||
| Subsidyforthree-networksintegrationsmartTVandsystemsupportplatformproject | 266,666.84 | 266,666.84 | Asset-related | ||||
| AnhuiProvinceTechnologyOfficeR&Ddevicessubsidy | 176,250.00 | 45,000.00 | 131,250.00 | Asset-related | |||
| Subsidyfor3DTVterminaldevelopmentandindustrializationproject | 108,333.15 | 108,333.15 | Asset-related | ||||
| SupportingfundforSuiningKonkaIndustrialPark | 229,420,000.00 | 229,420,000.00 | Income-related |
| ListofGovernmentSubsidy | Beginningbalance | Newamountintheperiod | Amountchargedtonon-operatingincomeintheperiod | Amountchargedtootherincomeintheperiod | Otherchanges | Endingbalance | Asset/income-related |
| SpecialgovernmentgrantsforTongchuanProject | 30,000,000.00 | 30,000,000.00 | Income-related | ||||
| (CCTV2)8KUHDdisplaychipR&Dandindustrializationproject | 20,000,000.00 | 20,000,000.00 | Asset-related | ||||
| SubsidyforreturnofthelandinKonkaChongqingIndustrialPark | 19,440,000.00 | 327,272.73 | 19,112,727.27 | Asset-related | |||
| NB-IOT-baseddisplayterminalsmartfactorynewmodel | 4,095,000.00 | 682,500.00 | 3,412,500.00 | Asset-related | |||
| SubsidyforcostofWuzhenKonkadigitalizationofphysicalspaces | 3,000,000.00 | 3,000,000.00 | Asset-related | ||||
| SubsidyfornewequipmentpurchasedbySichuanKonka | 2,133,169.00 | 2,133,169.00 | Asset-related | ||||
| Specialsubsidyfor | 1,546,519.00 | 71,650.28 | 1,474,868.72 | Asset-related |
| ListofGovernmentSubsidy | Beginningbalance | Newamountintheperiod | Amountchargedtonon-operatingincomeintheperiod | Amountchargedtootherincomeintheperiod | Otherchanges | Endingbalance | Asset/income-related |
| qualitydevelopment(technicalupgrading)forTongchuang | |||||||
| Grantformajorprovincialscience&technologyprogramsatAnhuiKonka | 1,500,000.00 | 25,000.00 | 1,475,000.00 | Asset-related | |||
| SubsidyfornewequipmentpurchasedbyYibinYanjiangConstructionInvestment&DevelopmentCo.,Ltd. | 1,215,523.00 | 230,208.29 | 985,314.71 | Asset-related | |||
| SubsidyformunicipaltechnologicalupgradingprogramatDongguanKonka | 668,700.00 | 5,814.79 | 662,885.21 | Asset-related |
| ListofGovernmentSubsidy | Beginningbalance | Newamountintheperiod | Amountchargedtonon-operatingincomeintheperiod | Amountchargedtootherincomeintheperiod | Otherchanges | Endingbalance | Asset/income-related |
| Z202001045GSmartTVkeytechnologiesR&Dproject | 600,000.00 | 600,000.00 | Asset-related | ||||
| BasicconstructionfundofSuiningIndustrialPark | 500,000.00 | 500,000.00 | Asset-related | ||||
| EquipmentsubsidyforAnhuiKonkatechnicalupgradingproject | 490,000.00 | 98,000.04 | 391,999.96 | Asset-related | |||
| MunicipaltechnologicalbreakthroughprojectatAnhuiKonka | 400,000.00 | 20,000.01 | 379,999.99 | Asset-related | |||
| Otherasset-relatedgovernmentsubsidies | 5,095,691.07 | 628,418.00 | 2,598,873.70 | 3,125,235.37 | Asset-related | ||
| Total | 151,874,258.45 | 331,672,713.46 | 36,646,447.27 | 446,900,524.64 |
40.Othernon-currentliabilities
| Item | Endingbalance | Beginningbalance |
| Contractobligationsoveroneyear | 106,475,449.02 | 117,318,235.28 |
| Total | 106,475,449.02 | 117,318,235.28 |
41.Sharecapital
| Item | Beginningbalance | Increase/decrease(+/-) | Endingbalance | ||||
| Newsharesissued | Bonusshares | Bonusissuefromprofit | Others | Subtotal | |||
| Totalshares | 2,407,945,408.00 | 2,407,945,408.00 | |||||
| Total | 2,407,945,408.00 | 2,407,945,408.00 | |||||
42.CapitalReserves
| Item | Beginningbalance | Increased | Decreased | Endingbalance |
| Othercapitalreserves | 230,368,577.09 | 183,267.00 | 230,185,310.09 | |
| Total | 230,368,577.09 | 183,267.00 | 230,185,310.09 |
Note:TheothercapitalreservesdecreasedbyRMB183,267.00duetothedisposalofZhuhaiJinsuPlasticCo.,Ltd.,anassociateoftheCompany.
43.OtherComprehensiveIncome
| Item | Beginningbalance | ReportingPeriod | Endingbalance | |||||
| IncomebeforetaxationintheCurrentPeriod | Less:RecordedinothercomprehensiveincomeinpriorperiodandtransferredinprofitorlossintheCurrentPeriod | Less:RecordedinothercomprehensiveincomeinpriorperiodandtransferredinretainedearningsintheCurrentPeriod | Less:Incometaxexpense | AttributabletoownersoftheCompanyastheparentaftertax | Attributabletonon-controllinginterestsaftertax | |||
| I.Itemsthatwillnotbereclassifiedtoprofitorloss | -9,652,181.00 | 1,701,121.80 | -1,628,195.00 | 3,253,302.80 | 76,014.00 | -6,398,878.20 | ||
| Changesinfairvalueofotherequityinstrumentinvestment | -9,652,181.00 | 1,701,121.80 | -1,628,195.00 | 3,253,302.80 | 76,014.00 | -6,398,878.20 | ||
| Others | ||||||||
| II.Itemsthatwillbereclassifiedtoprofitorloss | -11,640,922.52 | -4,501,482.44 | 1,456,758.30 | -5,958,240.74 | -10,184,164.22 | |||
| Item | Beginningbalance | ReportingPeriod | Endingbalance | |||||
| IncomebeforetaxationintheCurrentPeriod | Less:RecordedinothercomprehensiveincomeinpriorperiodandtransferredinprofitorlossintheCurrentPeriod | Less:RecordedinothercomprehensiveincomeinpriorperiodandtransferredinretainedearningsintheCurrentPeriod | Less:Incometaxexpense | AttributabletoownersoftheCompanyastheparentaftertax | Attributabletonon-controllinginterestsaftertax | |||
| Ofwhich:Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | -2,397,350.96 | -2,397,350.96 | ||||||
| Differencesarisingfromthetranslationofforeigncurrencydenominatedfinancialstatements | -9,243,571.56 | -4,501,482.44 | 1,456,758.30 | -5,958,240.74 | -7,786,813.26 | |||
| TotalOtherComprehensive | -21,293,103.52 | -2,800,360.64 | -1,628,195.00 | 4,710,061.10 | -5,882,226.74 | -16,583,042.42 | ||
| Item | Beginningbalance | ReportingPeriod | Endingbalance | |||||
| IncomebeforetaxationintheCurrentPeriod | Less:RecordedinothercomprehensiveincomeinpriorperiodandtransferredinprofitorlossintheCurrentPeriod | Less:RecordedinothercomprehensiveincomeinpriorperiodandtransferredinretainedearningsintheCurrentPeriod | Less:Incometaxexpense | AttributabletoownersoftheCompanyastheparentaftertax | Attributabletonon-controllinginterestsaftertax | |||
| Income | ||||||||
44.SurplusReserves
| Item | Beginningbalance | Increased | Decreased | Endingbalance |
| Statutorysurplusreserves | 973,502,519.62 | 973,502,519.62 | ||
| Discretionalsurplusreserves | 238,218,590.05 | 238,218,590.05 | ||
| Total | 1,211,721,109.67 | 1,211,721,109.67 |
45.RetainedEarnings
| Item | ReportingPeriod | Sameperiodoflastyear |
| Endingbalanceoflastyear | 4,239,763,606.89 | 4,271,408,192.21 |
| Add:Totalbeginningbalanceofretainedearningsbeforeadjustments | ||
| Ofwhich:changeofaccountingpolicy | -2,884,254.62 | |
| Otheradjustmentfactors | ||
| BeginningbalanceoftheReportingPeriod | 4,239,763,606.89 | 4,268,523,937.59 |
| Add:NetprofitattributabletoownersoftheCompanyastheparent | 477,633,250.14 | 212,034,210.08 |
| Retainedincomescarriedforwardfromothercomprehensiveincome | -1,628,195.00 | |
| Less:Withdrawalofstatutorysurplusreserves | ||
| Withdrawalofdiscretionalsurplusreserves | ||
| Dividendofordinarysharespayable | 120,397,270.40 | 240,794,540.78 |
| Endingbalanceofthisyear | 4,595,371,391.63 | 4,239,763,606.89 |
46.OperatingRevenueandCostofSales
(1)OperatingRevenueandCostofSales
| Item | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Mainoperations | 49,869,938,568.55 | 47,324,236,629.26 | 54,571,250,596.51 | 51,874,875,221.16 |
| Item | ReportingPeriod | Sameperiodoflastyear | ||
| Otheroperations | 481,897,986.32 | 270,827,720.72 | 547,874,882.21 | 263,323,279.88 |
| Total | 50,351,836,554.87 | 47,595,064,349.98 | 55,119,125,478.72 | 52,138,198,501.04 |
(2)DeductionfromOperatingRevenue
| Item | ReportingPeriod | Sameperiodoflastyear | Remark |
| OperatingRevenue | 50,351,836,554.87 | 55,119,125,478.72 | |
| Deductionitemsofoperatingrevenue | 56,103,050.39 | 31,986,803.24 | |
| Ofwhich:salesrevenuefromwaste | 30,676,771.37 | 13,628,880.00 | Unrelatedtothemainbusiness |
| Other | 25,426,279.02 | 18,357,923.24 | Waterandelectricityfees,loadingandunloadingfeesandotherareunrelatedtothemainbusiness |
| Subtotalofincomefrombusinessunrelatedtothemainbusiness | 56,103,050.39 | 31,986,803.24 | |
| Subtotalofincomewithoutcommercialsubstance | None | ||
| Operatingrevenueafterdeduction | 50,295,733,504.48 | 55,087,138,675.48 |
(3)MainOperations(Classifiedbyproduct)
| Item | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Supplychaintrading | 30,483,602,365.87 | 30,183,532,940.90 | 32,744,925,411.86 | 32,376,857,384.01 |
NotestotheFinancialStatementsofKonkaGroupCo.,Ltd.
FortheYearfrom1January2020to31December2020(allamountsinRMByuanunlessotherwisestated)
| Item | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| business | ||||
| ColorTVbusiness | 7,519,625,331.33 | 6,925,658,808.00 | 8,765,607,417.92 | 8,005,508,211.90 |
| Environmentalprotectionbusiness | 4,823,779,902.39 | 4,097,138,754.02 | 7,079,397,665.91 | 6,379,216,880.51 |
| Consumerappliancesbusiness | 3,842,051,456.02 | 3,317,107,750.97 | 3,829,318,820.56 | 3,299,314,084.65 |
| Semi-conductorbusiness | 282,969,230.63 | 275,286,437.09 | ||
| Others | 2,917,910,282.31 | 2,525,511,938.28 | 2,152,001,280.26 | 1,813,978,660.09 |
| Total | 49,869,938,568.55 | 47,324,236,629.26 | 54,571,250,596.51 | 51,874,875,221.16 |
(4)InformationonthetransactionpriceallocatedtotheremainingperformanceobligationTheincomecorrespondingtotheperformanceobligationssignedattheendoftheyearbutnotyetfulfilledornotcompletedis2,914,470,639.31yuan,ofwhich,2,474,070,687.55yuanisexpectedtorecognizerevenuein2021,376,489,946.62yuanisexpectedtorecognizerevenuein2022,and63,910,005.14yuanisexpectedtorecognizerevenuein2023.
47.TaxesandSurtaxes
| Item | ReportingPeriod | Sameperiodoflastyear |
| Stampduty | 25,112,454.61 | 22,123,062.33 |
| Urbanmaintenanceandconstructiontax | 21,225,457.65 | 26,917,643.05 |
| Landusetax | 17,657,115.79 | 17,468,778.99 |
| Propertytax | 13,264,477.94 | 15,307,845.93 |
| Educationsurcharge | 9,423,102.41 | 12,222,254.16 |
| Item | ReportingPeriod | Sameperiodoflastyear |
| Localeducationsurcharge | 6,341,838.85 | 8,143,404.48 |
| VATofland | 1,072,685.63 | 3,071,897.09 |
| Waterresourcesfund | 766,504.35 | 758,046.72 |
| Others | 2,372,230.08 | 3,838,898.36 |
| Total | 97,235,867.31 | 109,851,831.11 |
48.SellingExpense
| Item | ReportingPeriod | Sameperiodoflastyear |
| Payroll | 410,820,148.47 | 587,024,261.02 |
| Advertisingexpense | 405,038,820.57 | 459,598,430.49 |
| LogisticFee | 395,728,038.37 | 406,337,281.28 |
| Promotionalactivities | 199,811,766.50 | 299,435,084.44 |
| Warrantyfee | 186,239,759.56 | 197,180,754.12 |
| Taxesandfund | 58,646,916.00 | 53,068,717.14 |
| Businesstravelcharges | 18,952,238.58 | 38,355,711.50 |
| Rentalcharges | 18,695,062.27 | 20,839,323.65 |
| Exhibitionexpenses | 17,841,836.83 | 46,248,959.80 |
| Businessentertainmentexpenses | 13,710,892.65 | 19,360,409.81 |
| Others | 100,141,324.47 | 175,683,798.81 |
| Total | 1,825,626,804.27 | 2,303,132,732.06 |
49.AdministrativeExpense
| Item | ReportingPeriod | Sameperiodoflastyear |
| Payroll | 524,488,419.75 | 485,140,844.16 |
| Depreciationcharge | 147,324,296.40 | 101,216,934.52 |
| Intermediaryfees | 100,879,921.97 | 45,022,285.82 |
| Businesstravelcharges | 14,489,183.36 | 21,665,580.27 |
| Patentfee | 38,863,726.67 | 16,457,657.10 |
| Lossonscrapingofinventories | 5,515,711.35 | 11,955,696.11 |
| Water&electricityfees | 11,737,097.44 | 12,761,543.31 |
| Others | 179,683,586.40 | 162,308,786.33 |
| Total | 1,022,981,943.34 | 856,529,327.62 |
50.R&DExpense
| Item | ReportingPeriod | Sameperiodoflastyear |
| Salary | 297,465,065.33 | 197,406,785.63 |
| Materialdrawingout | 120,181,005.28 | 104,755,285.94 |
| Expensesontrialproductionofnewproducts | 116,276,268.41 | 88,111,358.93 |
| Commissionservicecharge | 32,833,667.49 | 41,462,134.39 |
| Depreciationandamortization | 23,530,284.84 | 12,437,250.53 |
| Informationcharges | 14,229,413.16 | 11,747,617.21 |
| Testingfees | 9,552,419.94 | 5,812,646.23 |
| Others | 67,810,487.20 | 38,867,023.37 |
| Total | 681,878,611.65 | 500,600,102.23 |
51.FinanceCosts
| Item | ReportingPeriod | Sameperiodoflastyear |
| Interestexpense | 979,223,522.98 | 1,031,068,425.69 |
| Less:Interestincome | 164,580,939.30 | 247,559,600.76 |
| Add:Exchangeloss | 220,044,519.70 | -67,740,367.81 |
| Other | 56,922,864.38 | 60,120,356.02 |
| Total | 1,091,609,967.76 | 775,888,813.14 |
52.OtherIncome
| Item | ReportingPeriod | Sameperiodoflastyear |
| Supportfund | 566,075,801.50 | 967,721,870.00 |
| Rewardsandsubsidies | 247,663,680.35 | 156,190,460.00 |
| Transferofdeferredincome | 36,646,447.27 | 31,183,437.20 |
| Softwaretaxrebates | 30,710,313.50 | 39,348,087.93 |
| Postsubsidies | 21,703,015.11 | 19,185,216.90 |
| L/Cexportsubsidy | 5,555,574.57 | 3,560,576.00 |
| Landtaxrebates | 15,955,706.27 | 10,906,489.80 |
| Others | 4,622,989.46 | 1,078,696.50 |
| Total | 928,933,528.03 | 1,229,174,834.33 |
53.InvestmentIncome
| Item | ReportingPeriod | Sameperiodoflastyear | |
| Long-termequityinvestmentincomemeasuredbyequitymethod | 104,288,418.75 | 141,264,035.96 | |
| Investmentincomefromdisposaloflong-termequityinvestment | 1,343,712,485.37 | 569,444,481.69 | |
| Investmentincomefromholdingofheld-for-tradingfinancialassets | 4,800,000.00 | 2,330,000.00 | |
| Investmentincomefromdisposalofheld-for-tradingfinancialassets | 3,405,333.03 | -10,285,883.02 | |
| Incomefromremeasurementofresidualstockrightsatfairvalueafterlosingcontrolpower | 885,804,841.25 | 342,337,346.63 | |
| Interestincomefromholdingofdebtinvestments | 68,621,917.82 | 60,433,679.86 | |
| Incomefromentrustedwealthmanagement,entrustedloans | 21,221,916.72 | 73,534,655.05 | |
| Investmentincomeadjustedduetounrealizedprofitsgeneratedfromupstreamtransactions | 1,081,111.64 | 4,322,774.22 | |
| Investmentincomefromdisposaloffinancialassetsatfairvaluethroughcurrentprofitorloss | 399,980.27 | ||
| Total | 2,433,336,004.85 | 1,183,381,090.39 | |
54.GainonChangesinFairValue
| Sources | ReportingPeriod | Sameperiodoflastyear |
| Tradingfinancialassets | 19,089,541.66 | |
| Ofwhich:gainonchangesinfairvalueofderivativefinancialinstruments | ||
| Tradingfinancialliabilities | -3,005,381.67 | |
| Total | 19,089,541.66 | -3,005,381.67 |
55.CreditImpairmentLoss
| Item | ReportingPeriod | Sameperiodoflastyear |
| Lossonbaddebtsofnotesreceivable | -24,930,991.28 | -4,306,077.35 |
| Baddebtlossesofaccountsreceivable | -444,069,685.68 | -339,398,520.50 |
| Baddebtlossesofotherreceivables | -258,255,844.49 | -183,525,075.35 |
| Baddebtlossofprepayment | 4,880,671.30 | -4,649,595.56 |
| Total | -722,375,850.15 | -531,879,268.76 |
56.AssetImpairmentLoss
| Item | ReportingPeriod | Sameperiodoflastyear |
| Inventorydepreciationlossandcontractperformancecostimpairmentloss | -172,812,626.21 | -197,576,487.91 |
| ContractualAssetImpairmentLoss | -146,807,263.10 | |
| Impairmentlossonlong-termequityinvestment | -38,375,298.75 | -29,028,300.57 |
| Impairmentlossonfixedassets | -947,487.17 | |
| Impairmentlossongoodwill | -103,464,423.24 | -76,431,127.34 |
| Total | -462,407,098.47 | -303,035,915.82 |
57.AssetDisposalIncome(“－”forloss)
| Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Incomesfromdisposalofdisposalgroupsheldforsale | |||
| Incomesfromdisposalofnon-currentassets | 206,315,700.34 | 293,706,640.64 | 206,315,700.34 |
| Including:incomesfrom | 206,315,700.34 | 293,706,640.64 | 206,315,700.34 |
| Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| disposalofnon-currentassetsnotclassifiedastheheld-for-saleassets | |||
| Ofwhich:Fixedassetsdisposalincome | 19,882,250.97 | 199,562,396.99 | 19,882,250.97 |
| Intangibleassetsdisposalincome | 186,433,449.37 | 94,144,243.65 | 186,433,449.37 |
| Total | 206,315,700.34 | 293,706,640.64 | 206,315,700.34 |
58.Non-operatingIncome
（1）ListofNon-operatingIncome
| Item | ReportingPeriod | SamePeriodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Insuranceindemnity | 74,801,658.73 | ||
| Non-currentassetsdamageandretirementgains | 1,076,972.21 | 1,076,972.21 | |
| Compensationandpenaltyincome | 55,750,466.90 | 41,951,152.92 | 55,750,466.90 |
| GovernmentsubsidiesunrelatedtothenormaloperationoftheCompany | 10,322,986.31 | 14,692,600.00 | 10,322,986.31 |
| Gainsondebtrestructuring | 6,030,592.00 | 14,536,434.36 | 6,030,592.00 |
| Other | 13,945,777.99 | 19,861,542.93 | 13,945,777.99 |
| Total | 87,126,795.41 | 165,843,388.94 | 87,126,795.41 |
（2）Ofwhich,governmentsubsidiesrecordedintocurrentprofitorloss:
| Item | Distributionentity | Distributionreason | Nature |
| ProjectsubsidyofChuzhouHuikeintelligentapplianceindustryinvestment | ChuzhouTongshengInvestmentDevelopmentCo.,Ltd. | SubsidyforparticipatinginChuzhouHuikeintelligentapplianceindustryinvestment | Subsidy |
| SubsidyofremovalofAnhuiKonkaZhilian | ChuzhouTongshengInvestmentDevelopmentCo.,Ltd. | SubsidyobtainedforremovaltoestablishingIntelligentAppliancesandEquipmentIndustrialPark | Subsidy |
| Subsidiesforplacementofretiredsoldiers | VATrelieffortheplacementofretiredsoldiers | Subsidy | |
| Total |
(continued)
| Item | Whethersubsidiesinfluencethecurrentprofitsandlossesornot | Specialsubsidyornot | ReportingPeriod | SamePeriodoflastyear | Relatedtoassets/relatedtoincome |
| ProjectsubsidyofChuzhouHuikeintelligentapplianceindustryinvestment | Not | Not | 10,136,986.31 | 9,692,600.00 | Relatedtoincome |
| SubsidyofremovalofAnhuiKonkaZhilian | Not | Not | 5,000,000.00 | Relatedtoincome | |
| Subsidiesforplacementofretired | Not | Not | 186,000.00 | Relatedtoincome |
| Item | Whethersubsidiesinfluencethecurrentprofitsandlossesornot | Specialsubsidyornot | ReportingPeriod | SamePeriodoflastyear | Relatedtoassets/relatedtoincome |
| soldiers | |||||
| Total | 10,322,986.31 | 14,692,600.00 |
59.Non-operatingExpense
| Item | ReportingPeriod | SamePeriodoflastyear | Amountrecordedintothecurrentnon-recurringprofitorloss |
| Lossesondamageandscrapingofnon-currentassets | 5,261,743.91 | 4,445,790.35 | 5,261,743.91 |
| Compensationexpense | 12,762,989.57 | 9,631,943.32 | 12,762,989.57 |
| Donations | 7,565,741.38 | 4,455,618.74 | 7,565,741.38 |
| Total | 25,590,474.86 | 18,533,352.41 | 25,590,474.86 |
60.IncomeTaxExpense
（
）ListsofIncomeTaxExpense
| Item | ReportingPeriod | Sameperiodoflastyear |
| Currentincometaxexpense | 259,865,247.09 | 514,367,217.82 |
| Deferredincometaxexpense | -298,071,552.16 | -398,727,126.00 |
| Total | -38,206,305.07 | 115,640,091.82 |
（2）AdjustmentProcessofAccountingProfitandIncomeTaxExpense
| Item | ReportingPeriod |
| Item | ReportingPeriod |
| Profitbeforetaxation | 501,867,157.37 |
| Currentincometaxexpenseaccountedatstatutory/applicabletaxrate | 125,466,789.34 |
| Influenceofapplyingdifferenttaxratesbysubsidiaries | -23,762,554.65 |
| Influenceofincometaxbeforeadjustment | -927,927.53 |
| Influenceofnon-taxableincome | -277,877,836.51 |
| Influenceofnotdeductablecosts,expensesandlosses | 42,085,079.82 |
| Influenceofdeductablelossofunrecognizeddeferredincometaxassetsinpriorperiod | -31,774,540.17 |
| InfluenceofdeductabletemporarydifferenceordeductablelossesofunrecognizeddeferredincometaxintheReportingPeriod | 173,029,456.41 |
| Changesinthebalanceofdeferredincometaxassets/liabilitiesinpreviousperiodduetoadjustmentoftaxrate | -319,183.21 |
| Other | -44,125,588.57 |
| Incometaxexpense | -38,206,305.07 |
61.OtherComprehensiveIncomeReferto“NoteVI-43.OtherComprehensiveIncome”fordetails.
62.CashFlowStatement
（
）CashGeneratedfrom/UsedinOtherOperating/Investing/FinancingActivities
）CashGeneratedfromOtherOperatingActivities
| Item | ReportingPeriod | SamePeriodoflastyear |
| Commercialfactoringaccountsreceived | 701,570,000.00 | 1,350,090,436.53 |
| Intercoursefunds | 737,849,254.12 | 88,274,570.49 |
| Incomefromgovernmentsubsidy | 1,171,789,839.65 | 1,253,240,751.45 |
| Frontmoneyandguaranteedeposit | 1,343,399,027.31 | 1,164,255,729.60 |
| Interestincomefrombankdeposits | 43,947,377.51 | 31,706,637.33 |
| Item | ReportingPeriod | SamePeriodoflastyear |
| Compensationofsuppliers | 56,949,337.80 | 24,896,023.45 |
| Other | 168,111,950.02 | 98,551,896.43 |
| Total | 4,223,616,786.41 | 4,011,016,045.28 |
）CashUsedinOtherOperatingActivities
| Item | ReportingPeriod | SamePeriodoflastyear |
| Thecommercialfactoringpayment(Note) | 700,000,000.00 | 955,963,886.78 |
| Expenseforcashpayment | 1,396,622,206.87 | 1,529,577,152.08 |
| Paymentmadeonbehalf | 24,937,901.55 | 30,691,357.02 |
| Paymentforguaranteedeposit,cashdeposit | 807,211,303.53 | 1,019,583,946.33 |
| Expenseforbankhandlingcharges | 26,997,496.86 | 37,748,563.79 |
| Energyconversationsubsidyreturned | 89,960,000.00 | |
| Other | 509,182,248.35 | 275,060,717.61 |
| Total | 3,464,951,157.16 | 3,938,585,623.61 |
3）CashGeneratedfromOtherInvestingActivities
| Item | ReportingPeriod | SamePeriodoflastyear |
| Recoveryoffinancialproducts | 531,953,067.30 | 454,850,000.00 |
| Recoveryofentrustedloans | 1,669,305,006.07 | 1,268,950,000.00 |
| Other | 521,000,071.70 | 361,869,168.69 |
| Total | 2,722,258,145.07 | 2,085,669,168.69 |
）CashUsedinOtherInvestingActivities
| Item | ReportingPeriod | SamePeriodoflastyear |
| Purchaseoffinancialproducts | 639,160,000.00 | 1,020,737,610.69 |
| Paymentforentrustedloans | 375,578,000.00 |
| Item | ReportingPeriod | SamePeriodoflastyear |
| Other | 342,199,320.83 | 507,903,146.78 |
| Total | 1,356,937,320.83 | 1,528,640,757.47 |
5）CashGeneratedfromOtherFinancingActivities
| Item | ReportingPeriod | SamePeriodoflastyear |
| Recoveryofmargindepositpledged | 1,139,622,285.43 | 601,239,942.14 |
| Financelease | 659,602,970.00 | 417,095,790.00 |
| Receivingentrustedloans | 955,993,888.99 | 807,263,000.00 |
| Total | 2,755,219,144.42 | 1,825,598,732.14 |
6）CashUsedinOtherFinancingActivities
| Item | ReportingPeriod | SamePeriodoflastyear |
| Depositasmarginforpledge | 1,116,447,153.50 | 1,154,091,959.94 |
| Repaymentofentrustedloans | 266,946,710.52 | 71,200,000.00 |
| Financelease | 346,079,008.76 | 275,515,872.11 |
| Financingexpense | 31,573,001.17 | 29,297,829.55 |
| Other | 213,638,809.72 | 93,037,101.26 |
| Total | 1,974,684,683.67 | 1,623,142,762.86 |
（
）SupplementalInformationforCashFlowStatement
| Supplementalinformation | ReportingPeriod | Sameperiodoflastyear |
| 1.Reconciliationofnetprofittonetcashflowsgeneratedfromoperatingactivities | ||
| Netprofit | 540,073,462.44 | 334,936,115.34 |
| Add:Provisionforimpairmentofassets | 462,407,098.47 | 303,035,915.82 |
| Creditimpairmentloss | 722,375,850.15 | 531,879,268.76 |
| Depreciationoffixedassets,oil-gasassets,and | 319,151,539.89 | 256,657,385.35 |
| Supplementalinformation | ReportingPeriod | Sameperiodoflastyear |
| productivelivingassets | ||
| Amortizationofintangibleassets | 78,424,382.89 | 63,777,612.08 |
| Amortizationoflong-termprepaidexpenses | 87,717,664.64 | 89,040,814.19 |
| Lossesondisposaloffixedassets,intangibleassetsandotherlong-livedassets(gains:negative) | -206,315,700.34 | -293,706,640.64 |
| Lossesonscrapoffixedassets(gains:negative) | 4,184,771.70 | 3,087,048.55 |
| Lossesonchangesinfairvalue(gains:negative) | -19,089,541.66 | 3,005,381.67 |
| Financecosts(gains:negative) | 893,158,757.67 | 837,555,538.04 |
| Investmentloss(gains:negative) | -2,433,336,004.85 | -1,183,381,090.39 |
| Decreaseindeferredincometaxassets(gains:negative) | -278,153,255.22 | -354,179,532.93 |
| Increaseindeferredincometaxliabilities(“-”meansdecrease) | -19,647,864.12 | -45,502,532.99 |
| Decreaseininventories(gains:negative) | 623,886,945.84 | -88,405,617.33 |
| Decreaseinaccountsreceivablegeneratedfromoperatingactivities(gains:negative) | -2,928,968,789.79 | -1,524,655,193.77 |
| Increaseinaccountspayableusedinoperatingactivities(decrease:negative) | 2,369,393,657.77 | -445,715,482.41 |
| Other | -36,646,447.27 | -31,376,273.93 |
| Netcashgeneratedfrom/usedinoperatingactivities | 178,616,528.21 | -1,543,947,284.59 |
| 2.Significantinvestingandfinancingactivitieswithoutinvolvementofcashreceiptsandpayments | ||
| Transferofdebttocapital | ||
| Currentportionofconvertiblecorporatebonds |
| Supplementalinformation | ReportingPeriod | Sameperiodoflastyear |
| Fixedassetsleasedinbyfinancing | ||
| 3.Netincrease/decreaseofcashandcashequivalent: | ||
| Endingbalanceofcash | 4,298,056,113.24 | 4,493,701,917.22 |
| Less:beginningbalanceofcash | 4,493,701,917.22 | 3,434,149,481.72 |
| Add:Endingbalanceofcashequivalents | ||
| Less:Beginningbalanceofcashequivalents | ||
| Netincreaseincashandcashequivalents | -195,645,803.98 | 1,059,552,435.50 |
（3）NetCashReceivefromDisposaloftheSubsidiaries
| Item | Amount |
| CashorcashequivalentsreceivedintheReportingPeriodfromdisposalofsubsidiariesintheCurrentPeriod | 911,058,150.00 |
| Ofwhich:DongguanKonkaInvestment | 586,500,000.00 |
| ChuzhouKangxin | 194,820,000.00 |
| E3info | 28,000,000.00 |
| ChongqingKonkaRealEstate | 27,000,000.00 |
| ChongqingChengda | 15,930,000.00 |
| Morsemi | 2,100,000.00 |
| ZhongshanKangao | 56,000,000.00 |
| ChengduKonkaIncubator | 600,000.00 |
| KonkaCross-BorderTechnologicalInnovation | 108,150.00 |
| Less:cashandcashequivalentsheldbysubsidiariesonthedateoflosingcontrolpower | 37,290,851.97 |
| Ofwhich:DongguanKonkaInvestment | 2,285,772.79 |
| ChuzhouKangxin | 3,317,421.35 |
| E3info | 24,712,706.14 |
| ChongqingKonkaRealEstate | 326,803.37 |
| ChongqingChengda | 138,308.59 |
| Item | Amount |
| Morsemi | 981,084.01 |
| ZhongshanKangao | 5,505,972.10 |
| ChengduKonkaIncubator | 8,878.67 |
| KonkaCross-BorderTechnologicalInnovation | 13,904.95 |
| Add:CashorcashequivalentsreceivedintheReportingPeriodfromdisposalofsubsidiariesinthepriorperiod | |
| Netcashreceivedfromdisposalofsubsidiaries | 873,767,298.03 |
（4）CashandCashEquivalents
| Item | Endingbalance | Beginningbalance |
| Cash | 4,298,056,113.24 | 4,493,701,917.22 |
| Including:Cashonhand | 16,052.88 | 18,699.99 |
| Bankdepositondemand | 4,298,040,060.36 | 4,493,683,217.23 |
| Endingbalanceofcashandcashequivalents | 4,298,056,113.24 | 4,493,701,917.22 |
63.ItemsintheStatementofChangesinShareholders'EquityThereisno“other”amounttoadjusttheamountattheendofthepreviousyearinthisperiod.
64.AssetswithRestrictedOwnershiporRighttoUse
| Item | Endingcarryingvalue | Reasonforrestriction |
| Monetaryassets | 1,133,474,067.66 | Amongthem,RMB1,067,872,557.16ismargindeposit,pledgeisusedforborrowingorissuingbankacceptancebill,RMB37,701,403.94isfinancialsupervisionaccountfund;RMB20,903,555.17isfixeddepositthatcannotbewithdrawninadvance;RMB6,996,551.39isrestrictedduetootherreasons. |
| Held-for-tradingfinancialassets | 599,160,000.00 | Structuraldeposits |
| Notesreceivable | 784,732,739.73 | ThecompanypledgedbankacceptancebillswithabookvalueofRMB784,732,739.73forcomprehensive |
| Item | Endingcarryingvalue | Reasonforrestriction |
| financingservicessuchasissuingbankacceptancebills,lettersofcredit,guarantees,andtradefinance. | ||
| Investmentproperty | 131,321,568.34 | Formortgageloan |
| Fixedassets | 768,741,766.12 | Usedformortgageloan,financeleaseandguarantee. |
| Constructioninprogress | 328,756,028.19 | Formortgageloan |
| Intangibleassets | 193,755,559.74 | Formortgageloan |
| Long-termreceivables | 351,107,041.45 | Forpledgeloan |
| Total | 4,291,048,771.23 |
65.ForeignCurrencyMonetaryItems
（
）ForeignCurrencyMonetaryItems
| Item | Endingforeigncurrencybalance | Exchangerate | EndingbalanceconvertedtoRMB |
| Monetaryassets | |||
| Ofwhich:USD | 95,989,561.32 | 6.5249 | 626,322,288.66 |
| EUR | 12,845.44 | 8.0250 | 103,084.66 |
| EGP | 1,013,290.04 | 0.4159 | 421,427.33 |
| HKD | 14,902,253.81 | 0.8416 | 12,541,736.81 |
| PLN | 854,889.37 | 1.7519 | 1,497,680.69 |
| Accountsreceivable | |||
| Ofwhich:USD | 132,221,173.92 | 6.5249 | 862,729,937.71 |
| EGP | 4,887,951.32 | 0.4159 | 2,032,898.95 |
| GBP | 564,195.30 | 8.8903 | 5,015,865.48 |
| HKD | 33,361,549.15 | 0.8416 | 28,077,079.76 |
| Item | Endingforeigncurrencybalance | Exchangerate | EndingbalanceconvertedtoRMB |
| Ofwhich:USD | 135,938,277.17 | 6.5249 | 886,983,664.71 |
| EGP | 5,519,421.05 | 0.4159 | 2,295,527.21 |
| HKD | 1,515,079.53 | 0.8416 | 1,275,090.93 |
| Short-termborrowings | |||
| Ofwhich:USD | 59,159,714.38 | 6.5249 | 386,011,220.36 |
| Accountspayable | |||
| Ofwhich:USD | 42,417,352.11 | 6.5249 | 276,768,980.78 |
| EUR | 7,752.00 | 8.0250 | 62,209.80 |
| HKD | 13,378,276.37 | 0.8416 | 11,259,157.39 |
| Otherpayables | |||
| Ofwhich:EUR | 40,359.30 | 8.0250 | 323,883.38 |
| EGP | 735,934.30 | 0.4159 | 306,075.08 |
| HKD | 23,661,059.12 | 0.8416 | 19,913,147.36 |
| Interestpayable | |||
| Ofwhich:USD | 99,200.24 | 6.5249 | 647,271.65 |
（
）NotestoOverseasEntitiesThesignificantoverseasentitiesincludeHongKongKonka,KonkaElectricalAppliancesInternationalTrading,ChainKingdomMemoryTechnologies,KangjietongandJialiInternational.ThemainoverseasoperatingplaceisHongKong.TheCompany’srecordingcurrencyisHKDsincethemaincurrencyincirculationinHongKongisHKD.
66.GovernmentSubsidy
（
）BasicInformationonGovernmentSubsidy
| Category | Amount | Listeditems | Amountrecordedinthecurrentprofitorloss |
| SupportingfundofChongqingBishanproject | 530,000,000.00 | Otherincome | 530,000,000.00 |
| SupportingfundofSuiningKonkaIndustrialParkSuiningproject | 245,972,074.00 | Deferredincome/Otherincome | 16,552,074.00 |
| Rewardsandsubsidies | 247,663,680.35 | Otherincome | 247,663,680.35 |
| Taxrebatesonsoftware | 30,710,313.50 | Otherincome | 30,710,313.50 |
| Postsubsidies | 21,703,015.11 | Otherincome | 21,703,015.11 |
| (Central2)8KUltraHDDisplayChipR&DandIndustrializationProject | 20,000,000.00 | Deferredincome | |
| ChongqingKonkaLandCompensationFund | 19,440,000.00 | Deferredincome | 327,272.73 |
| SupportFundofKonkaSemiconductorChipPackagingandTestingProject | 17,767,345.50 | Otherincome | 17,767,345.50 |
| SubsidyofplantconstructionofYibinKonkaIndustrialParkproject | 16,035,384.46 | Deferredincome | |
| SubsidiesforL/Cexports | 5,555,574.57 | Otherincome | 5,555,574.57 |
| Landtaxrebates | 15,955,706.27 | Otherincome | 15,955,706.27 |
| SupportingfundofYibinKonkaIndustrialParkproject | 1,756,382.00 | Otherincome | 1,756,382.00 |
| Other | 67,265,387.77 | Deferredincome/Otherincome/Non-operatingincome/Financialexpenses | 15,790,648.48 |
| Total | 1,239,824,863.53 | 902,937,339.80 |
（2）ReturnofGovernmentSubsidy
NosuchcasesintheReportingPeriod.
VII.ChangesofConsolidationScope1.Disposalofsubsidiary
| Nameofthesubsidiary | Theequitydisposalprice | Equitydisposalproportion(%) | Methodofequitydisposal | Timeoflosingcontrol | Recognitionbasisforthetimeoflosingcontrolpower | Thedifferencesofenjoyednetassetsshareofthesubsidiaryincorrespondingconsolidatedstatementsofthedisposalpriceandthedisposalinvestment(RMB’0,000) |
| DongguanKonkaInvestment | 58,650.00 | 51.00 | Transfer | 2020/9/25 | Therightsandobligationsrelatedtotheunderlyingequityhavebeentransferred | 66,661.40 |
| ChuzhouKangxin | 19,482.00 | 51.00 | Transfer | 2020/12/21 | Therightsandobligationsrelatedtotheunderlyingequityhavebeentransferred | 17,951.56 |
| E3info | 2,800.00 | 20.00 | Transfer | 2020/11/25 | Therightsandobligationsrelatedtotheunderlyingequityhavebeentransferred | 1,238.41 |
| ChongqingKonkaRealEstate | 2,700.00 | 18.00 | Transfer | 2020/11/25 | Therightsandobligationsrelatedtotheunderlyingequityhavebeen | 1,839.35 |
| Nameofthesubsidiary | Theequitydisposalprice | Equitydisposalproportion(%) | Methodofequitydisposal | Timeoflosingcontrol | Recognitionbasisforthetimeoflosingcontrolpower | Thedifferencesofenjoyednetassetsshareofthesubsidiaryincorrespondingconsolidatedstatementsofthedisposalpriceandthedisposalinvestment(RMB’0,000) |
| transferred | ||||||
| ChongqingChengda | 1,593.00 | 18.00 | Transfer | 2020/12/24 | Therightsandobligationsrelatedtotheunderlyingequityhavebeentransferred | 846.56 |
| Morsemi | 210.00 | 21.00 | Transfer | 2020/8/30 | Therightsandobligationsrelatedtotheunderlyingequityhavebeentransferred | 167.70 |
| ZhongshanKangao | 5,600.00 | 100.00 | Transfer | 2020/12/15 | Therightsandobligationsrelatedtotheunderlyingequityhavebeentransferred | 1,110.47 |
| ChengduKonkaIncubator | 60.00 | 70.00 | Transfer | 2020/12/22 | Therightsandobligationsrelatedtotheunderlyingequityhavebeentransferred | 108.24 |
| Nameofthesubsidiary | Theequitydisposalprice | Equitydisposalproportion(%) | Methodofequitydisposal | Timeoflosingcontrol | Recognitionbasisforthetimeoflosingcontrolpower | Thedifferencesofenjoyednetassetsshareofthesubsidiaryincorrespondingconsolidatedstatementsofthedisposalpriceandthedisposalinvestment(RMB’0,000) |
| KonkaCross-BorderTechnologicalInnovation | 10.82 | 21.00 | Transfer | 2020/12/22 | Therightsandobligationsrelatedtotheunderlyingequityhavebeentransferred | 10.21 |
(Continued)
| Nameofthesubsidiary | Residualequityproportiononthedateoflosingcontrolpower(%) | Carryingvalueofresidualequityonthedateoflosingcontrolpower(RMB’0,000) | Fairvalueofresidualequityonthedateoflosingcontrolpower(RMB’0,000) | Gainsorlossesfromre-measurementofresidualequityatfairvalue(RMB’0,000) | Recognitionmethodandmainassumptionoffairvalueofresidualequityonthedateoflosingcontrolpower | Amountofothercomprehensiveincomerelatedtoformersubsidiariestransferredintoinvestmentprofitorloss(RMB’0,000) |
| DongguanKonkaInvestment | 49.00 | 4,215.78 | 56,350.00 | 52,134.22 | Evaluatedprice | |
| ChuzhouKangxin | 49.00 | 1,470.45 | 18,718.00 | 17,247.55 | Evaluatedprice |
| Nameofthesubsidiary | Residualequityproportiononthedateoflosingcontrolpower(%) | Carryingvalueofresidualequityonthedateoflosingcontrolpower(RMB’0,000) | Fairvalueofresidualequityonthedateoflosingcontrolpower(RMB’0,000) | Gainsorlossesfromre-measurementofresidualequityatfairvalue(RMB’0,000) | Recognitionmethodandmainassumptionoffairvalueofresidualequityonthedateoflosingcontrolpower | Amountofothercomprehensiveincomerelatedtoformersubsidiariestransferredintoinvestmentprofitorloss(RMB’0,000) |
| E3info | 40.00 | 3,123.19 | 5,197.93 | 2,074.74 | Evaluatedprice | |
| ChongqingKonkaRealEstate | 33.00 | 1,577.86 | 4,950.00 | 3,372.14 | Evaluatedprice | |
| ChongqingChengda | 33.00 | 1,368.48 | 2,920.50 | 1,552.02 | Evaluatedprice | |
| Morsemi | 30.00 | 60.43 | 300.00 | 239.57 | Evaluatedprice | |
| ZhongshanKangao | Evaluatedprice | |||||
| ChengduKonkaIncubator | 30.00 | -20.67 | 25.47 | 46.14 | Evaluatedprice | |
| KonkaCross-BorderTechnologicalInnovation | 30.00 | 0.86 | 1.90 | 1.04 | Evaluatedprice |
2.ChangesinCombinationScopeforOtherReasons（
）SubsidiariesEstablishedbytheCompanyin2020
| Name | Registeredcapital | Shareholdingpercentage(%) | Timeandplaceofobtainingcontrolpower | Methodofobtaining |
| SuiningKonkaIntelligent | 100,000,000.00 | 100.00 | 2020/12/21 | Newlyestablished |
| FrestecSmartHome | 50,000,000.00 | 51.00 | 2020/8/26 | Newlyestablished |
| JiangsuKonkaIntelligent | 120,000,000.00 | 51.00 | 2020/9/11 | Newlyestablished |
| LiaoyangKangshunIntelligent | 10,000,000.00 | 100.00 | 2020/5/9 | Newlyestablished |
| LiaoyangKangshunRegeneration | 50,000,000.00 | 100.00 | 2020/9/10 | Newlyestablished |
| NanjingKonka | 10,000,000.00 | 100.00 | 2020/6/18 | Newlyestablished |
| GaopingKangrun | 100,000,000.00 | 48.45 | 2020/5/29 | Newlyestablished |
| MengchengKangrun | 100,000,000.00 | 43.35 | 2020/6/19 | Newlyestablished |
| XixianKangrun | 163,780,500.00 | 26.01 | 2020/4/16 | Newlyestablished |
| ChongzhouKangrun | 50,000,000.00 | 42.67 | 2020/8/28 | Newlyestablished |
| Xi'anKangrun | 73,710,000.00 | 48.45 | 2020/8/28 | Newlyestablished |
| AnkangKangrun | 100,000,000.00 | 26.01 | 2020/9/10 | Newlyestablished |
| ChangningKangrun | 50,000,000.00 | 45.89 | 2020/10/19 | Newlyestablished |
| LinfenKangrun | 95,000,000.00 | 39.24 | 2020/12/30 | Newly |
| Name | Registeredcapital | Shareholdingpercentage(%) | Timeandplaceofobtainingcontrolpower | Methodofobtaining |
| established | ||||
| JiangsuKonkaSpecialMaterials | 100,000,000.00 | 51.00 | 2020/12/24 | Newlyestablished |
| ChongqingKangxingruiAutomobileRecycling | 100,000,000.00 | 51.00 | 2020/4/17 | Newlyestablished |
| KonkaXinyunSemiconductor | 100,000,000.00 | 56.00 | 2020/4/17 | Newlyestablished |
| YantaiKangyunRealEstate | 10,000,000.00 | 51.00 | 2020/11/27 | Newlyestablished |
| ChongqingKangleiOptoelectronics | 50,000,000.00 | 51.00 | 2020/2/27 | Newlyestablished |
| YibinKangrun | 100,000,000.00 | 83.83 | 2020/4/21 | Newlyestablished |
| HenanKangxinRealEstate | 50,000,000.00 | 51.00 | 2020/8/24 | Newlyestablished |
| ShenzhenKangxinRealEstate | 50,000,000.00 | 51.00 | 2020/12/21 | Newlyestablished |
| HenanKanghanRealEstate | 50,000,000.00 | 51.00 | 2020/12/28 | Newlyestablished |
| KangshiVirtual | 100,000,000.00 | 100.00 | 2020/9/21 | Newlyestablished |
| ZhongshanKangxinElectronics | 1,000,000.00 | 51.00 | 2020/6/9 | Newlyestablished |
| ZhongshanKangao | 43,500,000.00 | 51.00 | 2020/9/3 | Newlyestablished |
| ChongqingChengda | 50,000,000.00 | 51.00 | 2020/9/14 | Newlyestablished |
| ChongqingChunfu | 50,000,000.00 | 51.00 | 2020/9/21 | Newlyestablished |
| Name | Registeredcapital | Shareholdingpercentage(%) | Timeandplaceofobtainingcontrolpower | Methodofobtaining |
| ChongqingLangheng | 50,000,000.00 | 51.00 | 2020/9/23 | Newlyestablished |
| HongKongMorsemi | HKD10,000.00 | 51.00 | 2020/4/20 | Newlyestablished |
（2）Thesituationofthecompany'scancellationofthedistributionofremainingassetsofthesubsidiaryin2020
| Name | Registeredcapital | Shareholdingpercentage(%) | Liquidationcompletiontime |
| KonkaEnterpriseManagement | 5,000,000.00 | 51.00 | 2020/8/26 |
| YoushiKangrong | 70,000,000.00 | 70.00 | 2020/7/1 |
| LifeElectricAppliance | 42,000,000.00 | 75.00 | 2020/12/10 |
| CommercialSystemTechnology | 12,000,000.00 | 81.00 | 2020/12/7 |
| FrestecSmart | 10,000,000.00 | 51.00 | 2020/9/27 |
| YuekangSemiconductor | 100,000,000.00 | 100.00 | 2020/2/24 |
| KangshiVirtual | 100,000,000.00 | 100.00 | 2020/12/28 |
| KangxinTechnology | 10,000,000.00 | 51.00 | 2020/11/20 |
| HainanTechnology | 100,000,000.00 | 51.00 | 2020/11/17 |
| NanjingKonkaSmart | 50,000,000.00 | 100.00 | 2020/11/17 |
| ZhongshanKangxinElectronic | 1,000,000.00 | 51.00 | 2020/12/4 |
| BoxingXingkangEnvironmental | 100,000,000.00 | 35.70 | 2020/11/19 |
| YantaiKonkaIndustrial | 100,000,000.00 | 89.71 | 2020/12/31 |
| ShandongKangxin | 100,000,000.00 | 51.00 | 2020/12/24 |
| Kanghong(Yantai)EnvironmentalProtectionIndustrialPark | 10,000,000.00 | 51.00 | 2020/9/29 |
| DebaoNewMaterials | 50,000,000.00 | 51.00 | 2020/12/7 |
| KangxinlongEnvironmentalProtection | 30,000,000.00 | 100.00 | 2020/12/8 |
NotestotheFinancialStatementsofKonkaGroupCo.,Ltd.
FortheYearfrom1January2020to31December2020(allamountsinRMByuanunlessotherwisestated)
VIII.EquityinOtherEntities
1.EquityinSubsidiary
（1）Subsidiaries
| Serialnumber | Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | ||||||
| 1 | KonkaVentures | Shenzhen,Guangdong | Shenzhen,Guangdong | Otherorganizationandmanagementservice | 51 | Establishmentorinvestment | |
| 2 | YantaiKonka | Yantai,Shandong | Yantai,Shandong | Otherprofessionalconsultancyandinvestigation | 51 | Establishmentorinvestment | |
| 3 | ChengduAnren | Chengdu,Sichuan | Chengdu,Sichuan | Commercialservice | 51 | Establishmentorinvestment | |
| 4 | KonkaEnterpriseService | Guiyang,Guizhou | Guiyang,Guizhou | Headquartersmanagement | 51 | Establishmentorinvestment | |
| 5 | ChuanghuiIntelligent | Nanjing,Jiangsu | Nanjing,Jiangsu | Entrepreneurialspaceservice | 40.8 | Establishmentorinvestment | |
| 6 | YibinKonkaIncubator | Yibin,Sichuan | Yibin,Sichuan | Commercialservice | 51 | Establishmentorinvestment | |
| 7 | AnhuiKonka | Chuzhou,Anhui | Chuzhou,Anhui | Manufacturingindustry | 78 | Establishmentorinvestment | |
| 8 | KangzhiTrade | Chuzhou,Anhui | Chuzhou,Anhui | Wholesaleindustry | 78 | Establishmentorinvestment | |
| Serialnumber | Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | ||||||
| 9 | KonkaFactoring | Shenzhen,Guangdong | Shenzhen,Guangdong | Insuranceagents(non-bankfinance) | 100 | Establishmentorinvestment | |
| 10 | KonkaUnifortune | Shenzhen,Guangdong | Shenzhen,Guangdong | Retailindustry | 51 | Establishmentorinvestment | |
| 11 | JialiInternational | HongKong,China | HongKong,China | Retailindustry | 51 | Establishmentorinvestment | |
| 12 | Wankaida | Shenzhen,Guangdong | Shenzhen,Guangdong | Softwaredevelopment | 100 | Establishmentorinvestment | |
| 13 | DongguanKonka | Dongguan,Guangdong | Dongguan,Guangdong | Manufacturingindustry | 75 | 25 | Establishmentorinvestment |
| 14 | SuiningKonkaIntelligent | Suining，Sichuan | Suining，Sichuan | Wholesaleindustry | 100 | Establishmentorinvestment | |
| 15 | KonkaEurope | Frankfurt,Germany | Frankfurt,Germany | Internationaltrading | 100 | Establishmentorinvestment | |
| 16 | KonkaElectricalAppliances | Shenzhen,Guangdong | Shenzhen,Guangdong | Manufacturingindustry,trading | 100 | Establishmentorinvestment | |
| 17 | TelecommunicationTechnology | Shenzhen,Guangdong | Shenzhen,Guangdong | Manufacturingindustry | 75 | 25 | Establishmentorinvestment |
| 18 | KonkaMobility | HongKong,China | HongKong,China | Manufacturingindustry | 100 | Establishmentorinvestment | |
| Serialnumber | Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | ||||||
| 19 | MobileInterconnection | Shenzhen,Guangdong | Shenzhen,Guangdong | Commerce | 100 | Establishmentorinvestment | |
| 20 | SichuanKonka | Yibin,Sichuan | Yibin,Sichuan | Manufacturingindustry | 100 | Establishmentorinvestment | |
| 21 | YibinIntelligent | Yibin,Sichuan | Yibin,Sichuan | Informationservice | 100 | Establishmentorinvestment | |
| 22 | AnhuiTongchuang | Chuzhou,Anhui | Chuzhou,Anhui | Manufacturingindustry | 100 | Establishmentorinvestment | |
| 23 | ElectricalApplianceTechnology | Chuzhou,Anhui | Chuzhou,Anhui | Manufacturingindustry | 51 | Establishmentorinvestment | |
| 24 | FrestecRefrigeration | Xinxiang,Henan | Xinxiang,Henan | Manufacturingindustry | 51 | Establishmentorinvestment | |
| 25 | FrestecSmartHome | Xinxiang,Henan | Xinxiang,Henan | Retailindustry | 51 | Establishmentorinvestment | |
| 26 | FrestecElectricalAppliances | Xinxiang,Henan | Xinxiang,Henan | Manufacturingindustry | 51 | Establishmentorinvestment | |
| 27 | FrestecHouseholdAppliances | Xinxiang,Henan | Xinxiang,Henan | Manufacturingindustry | 51 | Establishmentorinvestment | |
| 28 | JiangsuKonkaSmart | Changzhou,Jiangsu | Changzhou,Jiangsu | Electricalmachineryandequipmentmanufacturing | 51 | Establishmentorinvestment | |
| Serialnumber | Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | ||||||
| 29 | Kangjiatong | Yibin,Sichuan | Yibin,Sichuan | Serviceindustry | 51 | Establishmentorinvestment | |
| 30 | PengrunTechnology | Shenzhen,Guangdong | Shenzhen,Guangdong | Retailindustry | 51 | Establishmentorinvestment | |
| 31 | JiaxinTechnology | HongKong,China | HongKong,China | Retailindustry | 51 | Establishmentorinvestment | |
| 32 | DongguanPacking | Dongguan,Guangdong | Dongguan,Guangdong | Manufacturingindustry | 75 | 25 | Establishmentorinvestment |
| 33 | E2info | Shenzhen,Guangdong | Shenzhen,Guangdong | Informationservice | 95.78 | Establishmentorinvestment | |
| 34 | E2info(Hainan) | Haikou,Hainan | Haikou,Hainan | Informationservice | 95.78 | Establishmentorinvestment | |
| 35 | BeijingKonkaElectronic | Beijing | Beijing | Saleofhomeappliance | 100 | Establishmentorinvestment | |
| 36 | KonkaLeasing | TianjinPilotFreeTradeZone | TianjinPilotFreeTradeZone | Leasingindustry | 100 | Establishmentorinvestment | |
| 37 | ShenzhenKonkaCircuit | Shenzhen,Guangdong | Shenzhen,Guangdong | Investmentholding | 100 | Establishmentorinvestment | |
| 38 | BoluoKonkaPrecision | Boluo,Guangdong | Boluo,Guangdong | Manufacturingindustry | 100 | Establishmentorinvestment | |
| Serialnumber | Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | ||||||
| 39 | XiamenDalong | Xiamen,Fujian | Xiamen,Fujian | Commerce | 69.23 | Establishmentorinvestment | |
| 40 | BoluoKonka | Boluo,Guangdong | Boluo,Guangdong | Manufacturingindustry | 100 | Establishmentorinvestment | |
| 41 | HongKongKonka | HongKong,China | HongKong,China | Internationaltrading | 100 | Establishmentorinvestment | |
| 42 | KonkaHouseholdAppliancesInvestment | HongKong,China | HongKong,China | Investmentholding | 100 | Establishmentorinvestment | |
| 43 | ChainKingdom | HongKong,China | HongKong,China | Internationaltrading | 51 | Establishmentorinvestment | |
| 44 | ChainKingdomShenzhen | Shenzhen,Guangdong | Shenzhen,Guangdong | Wholesaleindustry | 51 | Establishmentorinvestment | |
| 45 | HefeiChainKingdom | Hefei,Anhui | Hefei,Anhui | Informationservice | 51 | Establishmentorinvestment | |
| 46 | KonkaZhisheng | HongKong,China | HongKong,China | Internationaltrading | 61 | Establishmentorinvestment | |
| 47 | Kangjietong | HongKong,China | HongKong,China | Serviceindustry | 51 | Establishmentorinvestment | |
| 48 | KonkaHouseholdAppliancesInternationalTrading | HongKong,China | HongKong,China | Internationaltrading | 100 | Establishmentorinvestment | |
| Serialnumber | Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | ||||||
| 49 | KONKOTECHNOLOGIESCO. | Cairo,Egypt | Cairo,Egypt | Internationaltrading | 67 | Establishmentorinvestment | |
| 50 | KonkaNorthAmericaLLC | California,USA | California,USA | Internationaltrading | 100 | Establishmentorinvestment | |
| 51 | KonkaInvstment | Shenzhen,Guangdong | Shenzhen,Guangdong | Capitalmarketsservice | 100 | Establishmentorinvestment | |
| 52 | YibinKonka | Yibin,Sichuan | Yibin,Sichuan | Developmentandmanagementofindustrialpark | 100 | Establishmentorinvestment | |
| 53 | KonkaCapital | Shenzhen,Guangdong | Shenzhen,Guangdong | Capitalmarketsservice | 100 | Establishmentorinvestment | |
| 54 | KonkaSuiyong | Shenzhen,Guangdong | Shenzhen,Guangdong | Investmentinindustry,commercialinformationconsultancyandinvestmentadvisor | 51 | Establishmentorinvestment | |
| 55 | KangquanEnterprise | Shenzhen,Guangdong | Shenzhen,Guangdong | Commercialservice | 51 | Establishmentorinvestment | |
| 56 | KonkaSuyuan | Shenzhen,Guangdong | Shenzhen,Guangdong | Commercialservice | 51 | Establishmentorinvestment | |
| 57 | ShengxingEnterprise | Shenzhen,Guangdong | Shenzhen,Guangdong | Commercialservice | 51 | Establishmentorinvestment | |
| Serialnumber | Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | ||||||
| 58 | IndustrialParkDevelopment | Shenzhen,Guangdong | Shenzhen,Guangdong | Commercialservice | 51 | Establishmentorinvestment | |
| 59 | ZhitongTechnology | Shenzhen,Guangdong | Shenzhen,Guangdong | Softwareandinformationtechnologyservice | 51 | Establishmentorinvestment | |
| 60 | ElectronicsTechnology | Shenzhen,Guangdong | Shenzhen,Guangdong | Manufacturingindustry | 100 | Establishmentorinvestment | |
| 61 | AnhuiZhilian | Chuzhou,Anhui | Chuzhou,Anhui | Electroniccommerce | 100 | Establishmentorinvestment | |
| 62 | Youzhihui | Shenzhen,Guangdong | Shenzhen,Guangdong | Softwareandinformationtechnologyserviceindustry | 100 | Establishmentorinvestment | |
| 63 | XiaojiaTechnology | Shenzhen,Guangdong | Shenzhen,Guangdong | Retailindustry | 100 | Establishmentorinvestment | |
| 64 | HaimenKonka | Nantong,Jiangsu | Nantong,Jiangsu | Wholesaleandretailindustry | 100 | Establishmentorinvestment | |
| 65 | ChengduKonkaIntelligent | Chengdu,Sichuan | Chengdu,Sichuan | Wholesaleandretailindustry | 100 | Establishmentorinvestment | |
| 66 | ChengduKonkaElectronic | Chengdu,Sichuan | Chengdu,Sichuan | Manufacturingindustry | 100 | Establishmentorinvestment | |
| 67 | XingDaHongYe | Zhongshan,Guangdong | Zhongshan,Guangdong | Manufacturingindustry | 51 | Establishmentor | |
| Serialnumber | Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | ||||||
| investment | |||||||
| 68 | ShanghaiXinfeng | Shanghai | Shanghai | Commerce | 51 | Establishmentorinvestment | |
| 69 | LiaoyangKangshunIntelligentTechnology | Liaoyang,Liaoning | Liaoyang,Liaoning | Wholesaleindustry | 100 | Establishmentorinvestment | |
| 70 | LiaoyangKangshunRenewableResources | Liaoyang,Liaoning | Liaoyang,Liaoning | Comprehensiveutilizationofwasteresources | 100 | Establishmentorinvestment | |
| 71 | NanjingKonka | Nanjing,Jiangsu | Nanjing,Jiangsu | Wholesaleindustry | 100 | Establishmentorinvestment | |
| 72 | YantaiLaikang | Yantai,Shandong | Yantai,Shandong | Commercialservice | 51 | Establishmentorinvestment | |
| 73 | EconTechnology | Yantai,Shandong | Yantai,Shandong | Environmentaltechnologyserviceindustry | 51 | Establishmentorinvestment | |
| 74 | BeijingKangyi | Beijing | Beijing | Environmentaltechnologyserviceindustry | 51 | Establishmentorinvestment | |
| 75 | ShanghaiJiyi | Shanghai | Shanghai | Environmentaltechnologyserviceindustry | 51 | Establishmentorinvestment | |
| 76 | BinzhouEcon | Binzhou,Shandong | Binzhou,Shandong | Environmentaltechnologyserviceindustry | 51 | Establishmentorinvestment | |
| 77 | LairunHoldings | Yantai,Shandong | Yantai,Shandong | Environmentaltechnology | 30.6 | Establishmentor | |
| Serialnumber | Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | ||||||
| serviceindustry | investment | ||||||
| 78 | LairunEnvironmentalProtection | Yantai,Shandong | Yantai,Shandong | Environmentaltechnologyserviceindustry | 27.54 | Establishmentorinvestment | |
| 79 | LaizhouLairunSewageTreatment | Yantai,Shandong | Yantai,Shandong | Environmenalprotectionandenvironmentmanagement | 24.14 | Establishmentorinvestment | |
| 80 | BinhaiSewageTreatment | Yantai,Shandong | Yantai,Shandong | Environmentaltechnologyserviceindustry | 30.6 | Establishmentorinvestment | |
| 81 | EconEnvironmentalEngineering | Chengdu,Sichuan | Chengdu,Sichuan | Environmentaltechnologyserviceindustry | 51 | Establishmentorinvestment | |
| 82 | RushanYike | Weihai,Shandong | Weihai,Shandong | Environmentaltechnologyserviceindustry | 44.37 | Establishmentorinvestment | |
| 83 | BinzhouWeiyijie | Binzhou,Shandong | Binzhou,Shandong | Environmentaltechnologyserviceindustry | 35.7 | Establishmentorinvestment | |
| 84 | BeihaiJingmai | Binzhou,Shandong | Binzhou,Shandong | Environmentaltechnologyserviceindustry | 24.99 | Establishmentorinvestment | |
| 85 | YantaiChunzhiran | Yantai,Shandong | Yantai,Shandong | Environmentaltechnologyserviceindustry | 35.7 | Establishmentorinvestment | |
| 86 | DonggangKangrun | Dandong,Liaoning | Dandong,Liaoning | Environmentaltechnologyserviceindustry | 50.7 | Establishmentorinvestment | |
| 87 | KangrunhongEnvironmental | Yantai, | Yantai, | Environmentaltechnology | 51 | Establishmentor | |
| Serialnumber | Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | ||||||
| Protection | Shandong | Shandong | serviceindustry | investment | |||
| 88 | DayiKangrunWater | Chengdu,Sichuan | Chengdu,Sichuan | Environmentaltechnologyserviceindustry | 51 | Establishmentorinvestment | |
| 89 | SuiningPengxiKangrun | Suining,Sichuan | Suining,Sichuan | Environmentaltechnologyserviceindustry | 40.75 | Establishmentorinvestment | |
| 90 | SubeiKangrunWater | Jiuquan,Gansu | Jiuquan,Gansu | Environmentaltechnologyserviceindustry | 39.78 | Establishmentorinvestment | |
| 91 | WeifangSihaiKangrun | Weifang,Shandong | Weifang,Shandong | Environmentaltechnologyserviceindustry | 32.09 | Establishmentorinvestment | |
| 92 | LushanKangrunEnvironmentalProtection | Pingdingshan,Henan | Pingdingshan,Henan | Environmentalprotectionandenvironmentmanagement | 45.44 | Establishmentorinvestment | |
| 93 | FunanKangrunWater | Fuyang,Anhui | Fuyang,Anhui | Environmentalprotectionandenvironmentmanagement | 40.55 | Establishmentorinvestment | |
| 94 | WuhanRunyuanSewageTreatment | Wuhan,Hubei | Wuhan,Hubei | Environmentalprotectionandenvironmentmanagement | 35.7 | Establishmentorinvestment | |
| 95 | TongchuanKangrunHonghui | Tongchuan,Shaanxi | Tongchuan,Shaanxi | Environmentalprotectionandenvironmentmanagement | 45.39 | Establishmentorinvestment | |
| 96 | TingyuanEnvironmental | Shanghai | Shanghai | Researchandexperimental | 51 | Establishmentor | |
| Serialnumber | Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | ||||||
| Protection | development | investment | |||||
| 97 | GaopingKangrun | Jincheng,Shanxi | Jincheng,Shanxi | Ecologicalprotectionandenvironmentalgovernanceindustry | 48.45 | Establishmentorinvestment | |
| 98 | MengchengKangrun | Bozhou,Anhui | Bozhou,Anhui | Waterconservancymanagementindustry | 43.35 | Establishmentorinvestment | |
| 99 | XiXianKangrun | XiXianNewArea,Shaanxi | XiXianNewArea,Shaanxi | Publicfacilitiesmanagementindustry | 26.01 | Establishmentorinvestment | |
| 100 | ChongzhouKangrun | Chongzhou,Sichuan | Chongzhou,Sichuan | Ecologicalprotectionandenvironmentalmanagementindustry | 42.67 | Establishmentorinvestment | |
| 101 | Xi'anKangrun | Xi'an,Shaanxi | Xi'an,Shaanxi | Ecologicalprotectionandenvironmentalmanagementindustry | 48.45 | Establishmentorinvestment | |
| 102 | AnkangKangrun | Ankang,Shaanxi | Ankang,Shaanxi | Ecologicalprotectionandenvironmentalmanagementindustry | 26.01 | Establishmentorinvestment | |
| 103 | ChangningKangrun | Hengyang,Hunan | Hengyang,Hunan | Waterproductionandsupplyindustry | 45.89 | Establishmentorinvestment | |
| Serialnumber | Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | ||||||
| 104 | BokangRenewable | Yantai,Shandong | Yantai,Shandong | Internetandrelatedservices | 26.01 | Establishmentorinvestment | |
| 105 | LinfenKangrun | Linfen,Shanxi | Linfen,Shanxi | Waterproductionandsupplyindustry | 39.24 | Establishmentorinvestment | |
| 106 | KonkaHuanjia | Dalian,Liaoning | Dalian,Liaoning | Processingofrenewableresources | 51 | Establishmentorinvestment | |
| 107 | KonkaHuanjia(Henan) | Lankao,Henan | Lankao,Henan | Technologyextensionandapplicationserviceindustry | 51 | Establishmentorinvestment | |
| 108 | ShanghaiKonka | Shanghai | Shanghai | Realestateindustry | 100 | Establishmentorinvestment | |
| 109 | YantaiKangjin | Yantai,Shandong | Yantai,Shandong | Realestateindustry | 0 | 62.80 | Establishmentorinvestment |
| 110 | JiangxiKonka | Jiujiang,Jiangxi | Jiujiang,Jiangxi | Production,manufacturingandprocessing | 51 | Establishmentorinvestment | |
| 111 | XinfengMicrocrystalline | Nanchang,Jiangxi | Nanchang,Jiangxi | Production,manufacturingandprocessing | 51 | Establishmentorinvestment | |
| 112 | Nanocrystalline | Jiujiang,Jiangxi | Jiujiang,Jiangxi | Production,manufacturingandprocessing | 51 | Establishmentorinvestment | |
| 113 | JiangsuKonkaSpecialMaterials | Jiangsu | Yancheng | Wholesaleindustry | 51 | Establishmentorinvestment | |
| Serialnumber | Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | ||||||
| 114 | ShenzhenNianhua | Shenzhen,Guangdong | Shenzhen,Guangdong | Commercialservice | 100 | Establishmentorinvestment | |
| 115 | ShenzhenKangxinwei | Shenzhen,Guangdong | Shenzhen,Guangdong | Semi-conductor | 100 | Establishmentorinvestment | |
| 116 | HefeiKangxinwei | Hefei,Anhui | Hefei,Anhui | Designofintegratedcircuit | 51 | Establishmentorinvestment | |
| 117 | YiheElectronic | Hefei,Anhui | Hefei,Anhui | Wholesaleindustry | 51 | Establishmentorinvestment | |
| 118 | ChongqingKonka | Chongqing | Chongqing | Softwareandinformationtechnologyservice | 100 | Establishmentorinvestment | |
| 119 | ShenzhenHuiyingTechnology | Shenzhen,Guangdong | Shenzhen,Guangdong | Wholesaleindustry | 51 | Establishmentorinvestment | |
| 120 | ChongqingHuiyingTechnology | Chongqing | Chongqing | Manufacturingindustryincomputer,communicationandotherelectronicequipment | 51 | Establishmentorinvestment | |
| 121 | KonkanEcologicalDevelopment | Shenzhen,Guangdong | Shenzhen,Guangdong | Commercialservice | 51 | Establishmentorinvestment | |
| 122 | SuiningKonkaIndustrialPark | Suining,Sichuan | Suining,Sichuan | Industrialparkdevelopmentand | 100 | Establishmentor | |
| Serialnumber | Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | ||||||
| operationmanagement | investment | ||||||
| 123 | KonkaIntegration | Jiaxing,Zhejiang | Jiaxing,Zhejiang | Wholesaleandretailindustry | 51 | Establishmentorinvestment | |
| 124 | SuiningElectronicTechnologicalInnovation | Suining,Sichuan | Suining,Sichuan | Commercialservice | 100 | Establishmentorinvestment | |
| 125 | ShenzhenChuangzhiAppliances | Shenzhen,Guangdong | Shenzhen,Guangdong | Wholesaleindustry | 100 | Establishmentorinvestment | |
| 126 | Koanghong(Yantai)EnvironmentalProtection | Yantai,Shandong | Yantai,Shandong | Comprehensiveutilizationofwasteresourcesindustry | 51 | Establishmentorinvestment | |
| 127 | ChongqingKangxingrui | Chongqing | Chongqing | Technologyextensionandapplicationserviceindustry | 51 | Establishmentorinvestment | |
| 128 | ChongqingKangxingruiAutomobileRecycling | Chongqing | Chongqing | Wholesaleindustry | 51 | Establishmentorinvestment | |
| 129 | ChongqingKonkaPhotoelectricTechnologyResearchInstitute | Chongqing | Chongqing | Researchandexperimentaldevelopment | 75 | Establishmentorinvestment | |
| 130 | XinyingSemiconductor | Shenzhen,Guangdong | Shenzhen,Guangdong | Manufacturingindustryincomputer,communication | 56 | Establishmentorinvestment | |
| Serialnumber | Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | ||||||
| andotherelectronicequipment | |||||||
| 131 | KonkaXinyunSemiconductor | Yancheng,Jiangsu | Yancheng,Jiangsu | Computer,communicationsandotherelectronicequipmentmanufacturing | 56 | Establishmentorinvestment | |
| 132 | Jiangkang(Shanghia)Technology | Shanghai | Shanghai | Researchandexperimentaldevelopment | 51 | Establishmentorinvestment | |
| 133 | NingboKanghanruiAppliances | Ningbo,Zhejiang | Ningbo,Zhejiang | Electricalmachineryandequipmentmanufacturing | 60 | Establishmentorinvestment | |
| 134 | KonkaZhizao | Shenzhen,Guangdong | Shenzhen,Guangdong | Researchandexperimentaldevelopment | 51 | Establishmentorinvestment | |
| 135 | SuiningJiarunProperties | Suining,Sichuan | Suining,Sichuan | Realestateindustry | 100 | Establishmentorinvestment | |
| 136 | YantaiKangyun | Yantai,Shandong | Yantai,Shandong | Commercialservice | 51 | Establishmentorinvestment | |
| 137 | YantaiKangyunRealEstate | Yantai,Shandong | Yantai,Shandong | Realestateindustry | 51 | Establishmentorinvestment | |
| 138 | ChongqingKangleiOptoelectronic | Chongqing | Chongqing | Computer,communicationsandother | 51 | Establishmentorinvestment | |
| Serialnumber | Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | ||||||
| electronicequipmentmanufacturing | |||||||
| 139 | YibinKangrun | Yibin,Sichuan | Yibin,Sichuan | Retailindustry | 67 | 16.83 | Establishmentorinvestment |
| 140 | HenanKangxinRealEstate | Xinxiang,Henan | Xinxiang,Henan | Realestateindustry | 51 | Establishmentorinvestment | |
| 141 | KonkaMaterial | Haikou,Hainan | Haikou,Hainan | Commercialservice | 51 | Establishmentorinvestment | |
| 142 | ShenzhenKangxinRealEstate | Shenzhen,Guangdong | Shenzhen,Guangdong | Realestateindustry | 51 | Establishmentorinvestment | |
| 143 | HenanKanghanRealEstate | Xinxiang,Henan | Xinxiang,Henan | Realestateindustry | 51 | Establishmentorinvestment | |
Note:TheindirectshareholdingoftheCompanyshallbethepenetrationratioofthesubsidiaryenjoyedbytheCompanyattheconsolidationlevel,andbelongstothefinalequityshareofthesubsidiaryenjoyedbytheCompany.
（2）SignificantNon-wholly-ownedSubsidiary
| Name | Shareholdingproportionofnon-controllinginterests(%) | Theprofitorlossattributabletothenon-controllinginterests | Declaringdividendsdistributedtonon-controllinginterests | Balanceofnon-controllinginterestsattheperiod-end |
| EconTechnology | 49.00% | 175,727,753.55 | 1,006,599,295.10 | |
| ChainKingdomMemoryTechnologies | 49.00% | 15,320,687.02 | 62,712,463.12 |
NotestotheFinancialStatementsofKonkaGroupCo.,Ltd.January1,2020toDecember31,2020(Unlessotherwisespecified,thenotestothisfinancialstatementarealllistedinRMB)
（3）TheMainFinancialInformationofSignificantNotWholly-ownedSubsidiary
| Name | Endingbalance | |||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliability | Totalliabilities | |
| EconTechnology | 4,462,132,589.77 | 8,755,726,357.81 | 13,217,858,947.58 | 8,703,704,732.25 | 2,962,052,834.96 | 11,665,757,567.21 |
| ChainKingdomMemoryTechnologies | 1,222,933,011.37 | 515,766.12 | 1,223,448,777.49 | 1,095,464,158.88 | 1,095,464,158.88 | |
(Continued)
| Name | Beginningbalance | |||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliability | Totalliabilities | |
| EconTechnology | 2,301,862,406.07 | 4,188,510,893.24 | 6,490,373,299.31 | 4,112,410,680.62 | 1,228,550,874.55 | 5,340,961,555.17 |
| ChainKingdomMemoryTechnologies | 1,589,255,895.39 | 681,653.19 | 1,589,937,548.58 | 1,485,611,244.88 | 1,485,611,244.88 | |
(Continued)
| Name | ReportingPeriod |
NotestotheFinancialStatementsofKonkaGroupCo.,Ltd.January1,2020toDecember31,2020(Unlessotherwisespecified,thenotestothisfinancialstatementarealllistedinRMB)
| Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
| EconTechnology | 3,272,636,835.33 | 320,737,166.02 | 320,737,166.02 | -571,785,929.67 |
| ChainKingdomMemoryTechnologies | 8,261,027,364.98 | 31,266,708.21 | 23,658,314.91 | -66,646,309.67 |
(Continued)
| Name | Sameperiodoflastyear | |||
| Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
| EconTechnology | 2,089,742,540.39 | 257,946,089.57 | 257,946,089.57 | -255,466,347.95 |
| ChainKingdomMemoryTechnologies | 7,255,440,615.91 | 57,623,214.42 | 60,113,821.08 | -3,025,942.67 |
2.Changesintheshareofowners'equityinsubsidiariesthisyearhavenoimpactonequity.
3.EquityinJointVenturesorAssociatedEnterprises
（
）SignificantJointVenturesorAssociatedEnterprises
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Accountingtreatmentoftheinvestmenttojointventureorassociatedenterprise | |
| Directly | Indirectly | |||||
| DongfangKonkaNo.1(Zhuhai)PrivateEquityInvestmentFund(LP) | Zhuhai | Zhuhai | Investmentmanagement | 49.95 | Equitymethod | |
| ChutianDragonCo.,Ltd. | Dongguan | Dongguan | ElectronicEquipmentManufacturing | 20.00 | Equitymethod | |
| BinzhouBeihaiWeiqiaoSolidWasteDisposalCo.,Ltd. | Binzhou | Binzhou | Environmentalprotectionandenvironmentalmanagement | 49.00 | Equitymethod |
（2）MainFinancialInformationofSignificantAssociatedEnterprise
| Item | Endingbalance/ReportingPeriod | ||
| DongfangKonkaNo.1(Zhuhai)PrivateEquityInvestmentFund(LP) | ChutianDragonCo.,Ltd. | BinzhouBeihaiWeiqiaoSolidWasteDisposalCo.,Ltd. | |
| Currentassets | 686,710,061.46 | 1,379,255,401.46 | 287,246,826.69 |
| Non-currentassets | 265,580,626.48 | 178,087,639.51 | |
| Totalassets | 686,710,061.46 | 1,644,836,027.94 | 465,334,466.20 |
| Currentliabilities | 285,530.00 | 541,529,388.70 | 87,098,339.17 |
| Non-currentliability | 25,206,327.43 | ||
| Totalliabilities | 285,530.00 | 566,735,716.13 | 87,098,339.17 |
| Equityof | -3,256,204.02 | ||
| Item | Endingbalance/ReportingPeriod | ||
| DongfangKonkaNo.1(Zhuhai)PrivateEquityInvestmentFund(LP) | ChutianDragonCo.,Ltd. | BinzhouBeihaiWeiqiaoSolidWasteDisposalCo.,Ltd. | |
| non-controllinginterests | |||
| EquityattributabletoshareholdersoftheCompanyastheparent | 686,424,531.46 | 1,081,356,515.83 | 378,236,127.03 |
| Shareofnetassetsaccountedbyshareholdingpercentage | 336,170,619.84 | 236,744,836.67 | 185,335,702.24 |
| Adjustmentitems | |||
| -Goodwill | 413,461,970.35 | ||
| -Unrealizedprofitofinternaltransaction | -2,535,163.18 | ||
| Others | -134,510.81 | ||
| Bookvalueofequityinvestmentinjointventure | 336,170,619.84 | 650,206,807.02 | 182,666,028.25 |
| Item | Endingbalance/ReportingPeriod | ||
| DongfangKonkaNo.1(Zhuhai)PrivateEquityInvestmentFund(LP) | ChutianDragonCo.,Ltd. | BinzhouBeihaiWeiqiaoSolidWasteDisposalCo.,Ltd. | |
FairvalueofequityinvestmentofjointventurewithpublicofferOperatingrevenue
| Operatingrevenue | 1,025,155,857.95 | 220,586,264.46 | |
| Financecosts | -257,638.57 | -4,018,451.37 | -82,236.61 |
| Incometaxexpense | 14,153,788.28 | -2,050,943.53 | |
| Netprofit | 84,878,495.25 | 96,798,712.97 | 130,067,221.02 |
| Netprofitfromdiscontinuedoperations | |||
| Othercomprehensiveincome | |||
| Totalcomprehensive | 84,878,495.25 | 96,798,712.97 | 130,067,221.02 |
| Item | Endingbalance/ReportingPeriod | ||
| DongfangKonkaNo.1(Zhuhai)PrivateEquityInvestmentFund(LP) | ChutianDragonCo.,Ltd. | BinzhouBeihaiWeiqiaoSolidWasteDisposalCo.,Ltd. | |
| income | |||
| Dividendsreceivedfromthejointventureinthecurrentyear | 9,240,000.00 | 10,300,000.00 | |
(Continued)
| Item | Beginningbalance/Sameperiodoflastyear | ||
| DongfangKonkaNo.1(Zhuhai)PrivateEquityInvestmentFund(LP) | ChutianDragonCo.,Ltd. | BinzhouBeihaiWeiqiaoSolidWasteDisposalCo.,Ltd. | |
| Currentassets | 632,869,229.53 | 1,243,797,727.50 | 168,736,029.14 |
| Non-currentassets | 290,274,962.74 | 182,046,220.08 | |
| Totalassets | 632,869,229.53 | 1,534,072,690.24 | 350,782,249.22 |
| Item | Beginningbalance/Sameperiodoflastyear | ||
| DongfangKonkaNo.1(Zhuhai)PrivateEquityInvestmentFund(LP) | ChutianDragonCo.,Ltd. | BinzhouBeihaiWeiqiaoSolidWasteDisposalCo.,Ltd. | |
| Currentliabilities | 44,259,288.94 | 485,651,089.30 | 72,613,343.21 |
| Non-currentliability | 25,018,287.84 | ||
| Totalliabilities | 44,259,288.94 | 510,669,377.14 | 72,613,343.21 |
| Equityofnon-controllinginterests | |||
| EquityattributabletoshareholdersoftheCompanyastheparent | 588,609,940.59 | 1,023,403,313.10 | 278,168,906.01 |
| Shareofnetassetsaccountedbyshareholdingpercentage | 310,024,401.51 | 222,599,666.35 | 136,302,763.94 |
| Adjustmentitems | |||
| -Goodwill | 413,461,970.35 | ||
| -Unrealizedprofitofinternaltransaction | -2,535,163.18 | ||
| Item | Beginningbalance/Sameperiodoflastyear | ||
| DongfangKonkaNo.1(Zhuhai)PrivateEquityInvestmentFund(LP) | ChutianDragonCo.,Ltd. | BinzhouBeihaiWeiqiaoSolidWasteDisposalCo.,Ltd. | |
| Others | -134,510.81 | ||
| Bookvalueofequityinvestmentinjointventure | 310,024,401.51 | 636,061,636.70 | 133,633,089.95 |
FairvalueofequityinvestmentofjointventurewithpublicofferOperatingrevenue
| Operatingrevenue | 1,182,099,672.38 | 291,745,561.77 | |
| Financecosts | -12,631.40 | -2,473,856.91 | 420,534.06 |
| Incometaxexpense | 344,172.57 | 16,916,284.79 | |
| Netprofit | 94,882,517.71 | 117,058,262.27 | 201,212,689.88 |
| Netprofitfromdiscontinuedoperations |
| Item | Beginningbalance/Sameperiodoflastyear | ||
| DongfangKonkaNo.1(Zhuhai)PrivateEquityInvestmentFund(LP) | ChutianDragonCo.,Ltd. | BinzhouBeihaiWeiqiaoSolidWasteDisposalCo.,Ltd. | |
| Othercomprehensiveincome | |||
| Totalcomprehensiveincome | 94,882,517.71 | 117,058,262.27 | 201,212,689.88 |
| Dividendsreceivedfromthejointventureinthecurrentyear | 11,088,000.00 | 24,500,000.00 | |
（3）SummaryFinancialInformationofInsignificantJointVenturesorAssociatedEnterprises
| Item | Endingbalance/ReportingPeriod | Beginningbalance/TheSameperiodoflastyear |
| Associatedenterprise: | ||
| Totalcarryingvalueofinvestment | 3,637,302,366.34 | 3,249,236,533.91 |
| Item | Endingbalance/ReportingPeriod | Beginningbalance/TheSameperiodoflastyear |
| Thetotaloffollowingitemsaccordingtotheshareholdingproportions | ||
| --Netprofit | -32,617,474.82 | 431,670.21 |
| --Othercomprehensiveincome | 1,486,737.16 | -335,456.79 |
| --Totalcomprehensiveincome | -31,130,737.66 | 96,213.42 |
IX.TheRiskRelatedtoFinancialInstrumentsTheCompany’smainfinancialinstrumentsincludeborrowings,accountsreceivable,accountspayable,tradingfinancialassetsandliabilities,etc.PleaserefertoNoteVIfordetaileddescriptionsofvariousfinancialinstruments.Risksrelatedtothesefinancialinstruments,andriskmanagementpoliciestheCompanyhasadoptedtoreducetheserisksaredescribedasfollows.TheCompanymanagementmanagesandmonitorstheriskexposureinordertoensuretheaboveriskstobecontrolledinalimitedscope.
1.VariousRiskManagementObjectivesandPoliciesThegoalsoftheCompanyengagedintheriskmanagementistoachievetheproperbalancebetweentherisksandbenefits,reducedthenegativeimpacttotheCompanyoperatingperformancerisktoaminimum,maximizedtheprofitsofshareholdersandotherequityinvestors.Basedontheriskmanagement
goal,thebasicstrategyoftheCompany'sriskmanagementisdetermineandanalyzethevariousrisksfacedbytheCompany,setupthebottomlineofriskandconductedappropriateriskmanagement,andtimelysupervisedvariousrisksinareliablewayandcontrolledtheriskwithintherangeoflimit.
（1）MarketRisk1）ForeignExchangeRiskForeignexchangeriskreferstotherisksthatmayleadtolossesduetofluctuationinexchangerate.TheforeignexchangeriskbornebytheCompanyisrelatedtoUSD.ExcepttheprocurementandsalesbyUSDforseveralsubsidiariesoftheCompany,theothermainbusinessesoftheCompanyweresettledbyRMB.TheforeignexchangerisksproducedbytheassetsandliabilitiesbalancemayaffectthebusinessperformanceoftheCompany.AsofDecember31,2020,exceptfortheassetsorliabilitiesmentionedinthetablebelow,theassetsandliabilitiesoftheCompanyaremainlythebalanceofRMB.
| Item | Period-end | Period-begin |
| Cashandcashequivalents | 95,989,561.32 | 161,346,670.90 |
| Accountsreceivable | 132,221,173.92 | 118,602,602.84 |
| Otherreceivables | 135,938,277.17 | 6,281,335.37 |
| Interestreceivables | ||
| Short-termborrowings | 59,159,714.38 | 98,297,903.18 |
| Accountspayable | 42,417,352.11 | 42,269,219.38 |
| Interestpayable | 99,200.24 | 275,923.30 |
Thecompanypayscloseattentiontotheimpactofexchangeratechangesonthecompany'sforeignexchangerisk,andrequiresmajorcompaniesinthegroupthatpurchaseandsellinforeigncurrencytopayattentiontothechangesinforeigncurrencyassetsandliabilities,managethegroup'sforeigncurrencynetassetexposureinaunifiedway,implementsinglecurrencysettlement,andreducethescaleofforeigncurrencyassetsandliabilities,soastoreduceforeignexchangeriskexposure.
2）InterestRateRisk
TheCompanybearsinterestrateriskduetointerestratechangesofinterestbearingfinancialassetsandliabilities.TheCompany'sinterestbearingfinancialassetsaremainlybankdeposits,ofwhichthevariableinterestrateismostlyshort-term,whiletheinterestbearingfinancialliabilitiesaremainlybankloansandcorporatebonds.TheCompany'slong-termbankborrowingsandcorporatebondsarefixedinterestrates.Therefore,itisconsideredthattheriskcausedbythechangeofinterestrateismainlyrelatedtotheshort-termbankborrowings.TheCompany'spolicyistomaintainthefloatinginterestrateoftheseborrowingsinordertoeliminatethefairvalueriskofinterestratechanges.OnDecember31,2019,thebalanceofsuchshort-termborrowingsisRMB10,990,550,475.78.
（2）CreditRisk
AsofDecember31,2020,themaximumcreditriskexposurethatmaycausefinanciallossestotheCompanymainlycamefromlossesgeneratedfromtheCompany’sfinancialassetsduetofailureoftheotherpartyinacontracttoperformitsobligationsandthefinancialguaranteeundertakenbytheCompany,including:
Thecarryingamountoffinancialassetsrecognizedintheconsolidatedbalancesheet;forfinancialinstrumentsmeasuredatfairvalue,thebookvaluereflectstheirriskexposure,butnotthemaximumriskexposure,andthemaximumriskexposurewillchangewiththechangeoffuturefairvalue.
Inordertoreducecreditrisk,thecompanyhassetupagrouptodeterminethecreditlimit,conductcreditapproval,andimplementothermonitoringprocedurestoensurethatnecessarymeasuresaretakentorecoveroverdueclaims.Inaddition,thecompanyreviewstherecoveryofeachsinglereceivableon
eachbalancesheetdatetoensurethatsufficientbaddebtprovisionismadefortheunrecoverableamount.Therefore,thecompany'smanagementbelievesthatthecompany'screditriskhasbeengreatlyreduced.Thecompany'sworkingcapitalisdepositedinbankswithhighcreditrating,sothecreditriskofworkingcapitalislow.TheCompanyhasadoptednecessarypoliciestoensurethatallcustomershavegoodcreditrecords.Exceptforthetopfivecustomersintermsoftheamountofaccountsreceivable,theCompanyhasnoothermajorcreditconcentrationrisk.ForthefinancialassetsoftheCompanythathavebeenindividuallyimpaired,pleasereferto4.AccountsReceivableand7.OtherReceivablesinNoteVI.
（3）LiquidityRiskLiquidityriskreferstotheriskthatthecompanyisunabletofulfillitsfinancialobligationsontheduedate.TheCompanymanagesliquidityriskinthemethodofensuringthatthereissufficientliquiditytofulfilldebtobligationswithoutcausingunacceptablelossordamagetotheCompany’sreputation.Inordertomitigatetheliquidityrisk,themanagementofthecompanyhascarriedoutadetailedinspectionontheliquidityofthecompany,includingthematurityofaccountspayableandotherpayables,bankcreditlineandbondfinancing.Theconclusionisthatthecompanyhassufficientfundstomeettheneedsofthegroup'sshort-termdebtandcapitalexpenditure.
TheanalysisofthefinancialassetsandfinancialliabilitiesheldbytheCompanybasedonthematurityperiodoftheundiscountedremainingcontractualobligationsisasfollows:
NotestotheFinancialStatementsofKonkaGroupCo.,Ltd.
FortheYearfrom1January2020to31December2020(allamountsinRMByuanunlessotherwisestated)
AmountonDecember31,2020:
| Item | Within1year | 1to2years | 2to5years | Over5years | Total |
| Financialassets | |||||
| Monetaryassets | 5,431,530,180.90 | 5,431,530,180.90 | |||
| Held-for-tradingfinancialassets | 618,249,541.66 | 618,249,541.66 | |||
| Notesreceivable | 2,358,180,193.96 | 2,358,180,193.96 | |||
| Accountsreceivable | 2,569,915,591.31 | 897,205,290.70 | 433,321,830.59 | 454,911.00 | 3,900,897,623.59 |
| Otherreceivables | 1,573,166,227.32 | 421,239,674.89 | 126,426,976.91 | 24,903,761.48 | 2,145,736,640.60 |
| Long-termreceivables | 37,310,158.82 | 48,853,780.97 | 56,233,905.16 | 294,409,517.90 | 436,807,362.85 |
| Othercurrentassets | 1,913,146,483.39 | 1,913,146,483.39 | |||
| Financialliabilities | |||||
| Short-termborrowings | 10,990,550,475.78 | 10,990,550,475.78 | |||
| Notespayable | 1,335,987,026.21 | 1,335,987,026.21 | |||
| Accountspayable | 8,134,924,659.58 | 1,279,766,515.39 | 217,675,150.79 | 9,632,366,325.76 | |
| Otherpayables | 1,656,395,339.19 | 89,458,935.79 | 253,576,624.71 | 1,999,430,899.69 | |
| Payrollpayable | 476,616,244.45 | 476,616,244.45 | |||
| Currentportionofnon-current | 376,896,566.29 | 376,896,566.29 |
| Item | Within1year | 1to2years | 2to5years | Over5years | Total |
| liabilities | |||||
| Long-termborrowings | 18,150,000.00 | 2,687,210,000.00 | 478,624,612.32 | 2,798,914,385.22 | 5,982,898,997.54 |
| Bondspayable | 4,993,212,788.32 | 4,993,212,788.32 | |||
| Long-termpayables | 358,746,566.29 | 325,321,841.94 | 156,088,008.02 | 840,156,416.25 |
2.SensitivityAnalysisTheCompanyadoptssensitivityanalysistechnologytoanalyzethepossibleimpactofreasonableandpossiblechangesofriskvariablesoncurrentprofits/lossesorshareholders’equity.Asanyriskvariablerarelychangesinisolation,andthecorrelationbetweenvariableswillhaveasignificanteffectonthefinalimpactamountofthechangeofariskvariable,thefollowingcontentisbasedontheassumptionthatthechangeofeachvariableisindependent.
（1）SensitivityanalysisofforeignexchangeriskAssumptionforthesensitivityofforeignexchangerisk:Allnetinvestmenthedgingandcashflowhedgingofoverseasoperationsarehighlyeffective.Onthebasisoftheaboveassumption,undertheconditionthatothervariablesremainunchanged,theimpactofreasonablechangesintheexchangerateoncurrentprofits/lossesandequityaftertaxisasfollows:
| Item | Changeintheexchangerate | 2020 | |
| Impactonnetprofit | Impactonshareholders’equity | ||
| USD | Appreciationof1%againstRMB | 16,211,942.87 | 13,375,843.78 |
| USD | Depreciationof1%againstRMB | -16,211,942.87 | -13,375,843.78 |
（
）SensitivityanalysisofinterestrateriskThesensitivityanalysisofinterestrateriskisbasedonthefollowingassumptions:
Changesinmarketinterestratesaffecttheinterestincomeorexpensesoffinancialinstrumentswithvariableinterestrates;Forfinancialinstrumentswithfixedinterestratesmeasuredatfairvalue,changesinmarketinterestratesonlyaffecttheirinterestincomeorexpenses;ThefairvaluechangesofderivativefinancialinstrumentsandotherfinancialassetsandliabilitiesarecalculatedwiththemarketinterestrateonthebalancesheetdateandtheDCF(discountedcashflow)method.Onthebasisoftheaboveassumption,undertheconditionthatothervariablesremainunchanged,theimpactofreasonablechangesintheexchangerateoncurrentprofits/lossesandequityaftertaxisasfollows:
| Item | Changein | 2020 |
| theinterestrate | Impactonnetprofit | Impactonshareholders’equity | |
| Borrowingswithafloatingrate | Upby0.5% | 41,364,032.83 | 39,778,444.84 |
| Borrowingswithafloatingrate | Downby0.5% | -41,364,032.83 | -39,778,444.84 |
X.TheDisclosureofFairValue
1.EndingFairValueofAssetsandLiabilitiesatFairValue
| Item | Endingfairvalue | |||
| Fairvaluemeasurementitemsatlevel1 | Fairvaluemeasurementitemsatlevel2 | Fairvaluemeasurementitemsatlevel3 | Total | |
| I.Consistentfairvaluemeasurement | 618,249,541.66 | 618,249,541.66 | ||
| (I)Tradingfinancialassets | ||||
| 1.Financialassetsatfairvaluethroughprofitorloss | ||||
| (1)Debtinstrumentinvestment | ||||
| (2)Equityinstrumentinvestment | ||||
| (3)Derivativefinancialassets | ||||
| (4)Structureddeposits | 618,249,541.66 | 618,249,541.66 | ||
| (II)Accountsreceivablefinancing | 84,057,197.44 | 84,057,197.44 | ||
| (III)Investmentinotherdebtobligations | ||||
| (IV)Otherequityinstrumentinvestment | 25,343,293.16 | 25,343,293.16 | ||
| (V)Othernon-currentfinancialassets | 1,878,154,796.73 | 1,878,154,796.73 | ||
| Item | Endingfairvalue | |||
| Fairvaluemeasurementitemsatlevel1 | Fairvaluemeasurementitemsatlevel2 | Fairvaluemeasurementitemsatlevel3 | Total | |
| Totalassetsofconsistentfairvaluemeasurement | 2,521,747,631.55 | 2,521,747,631.55 | ||
| Totalliabilitiesofconsistentfairvaluemeasurement | ||||
| Totalassetsofinconsistentfairvaluemeasurement | ||||
| Totalliabilitiesofinconsistentfairvaluemeasurement | ||||
2.BasisforDeterminingtheMarketPricesofConsistentandInconsistentFairValue
MeasurementItemsatLevel1InputvalueatLevel1istheunadjustedquotationintheactivemarketofthesameassetsorliabilitiesthatcanbeobtainedonthemeasurementdate.
3.ValuationTechniqueAdoptedandQualitativeandQuantitativeInformationof
ImportantParametersforConsistentandInconsistentFairValueMeasurementItemsat
Level2TheLevel2fairvaluemeasurementofinputvalueatLevel2istheinputvalueobservabledirectlyorindirectlyofrelevantassetsorliabilitiesexclusiveofinputvalueatLevel1.
4.ValuationTechniqueAdoptedandQualitativeandQuantitativeInformationof
ImportantParametersforConsistentandInconsistentFairValueMeasurementItemsat
Level3InputvalueatLevel3istheinputvalueunobservableofrelevantassetsorliabilities.
XI.RelatedPartyandRelated-partyTransaction(I)RelationshipofRelatedParty
1.ControllingShareholderandtheUltimateController
（1）ControllingShareholderandtheUltimateController
| Name | Registrationplace | Nature | Registeredcapital | ShareholdingratiototheCompany(%) | VotingrightratiototheCompany(%) |
| OCTGroupCo.,Ltd. | Shenzhen | Tourism,realestate,electronicsindustry | RMB12billion | 29.999997 | 29.999997 |
Note:TheultimatecontrolleroftheCompanyisState-ownedAssetsSupervisorCommissionoftheStateCouncil.
（2）TheRegisteredCapitaloftheControllingShareholderanditsChanges
| Controllingshareholder | Beginningbalance | Increase | Decrease | Endingbalance |
| OCTGroupCo.,Ltd. | 12,000,000,000.00 | 12,000,000,000.00 |
（
）ControllingShareholders’SharesorEquityandtheirChanges
| Controllingshareholder | Shareholdingamount | Shareholdingratio(%) |
| Endingbalance | Beginningbalance | Percentageattheendoftheyear | Percentageatthebeginningoftheyear | |
| OCTGroupCo.,Ltd. | 722,383,542.00 | 722,383,542.00 | 29.999997 | 29.999997 |
2.SubsidiaryRefertonoteVIII-1(1)Subsidiariesfortheinformationofsubsidiaries.
3.AssociatedEnterprisesandJointVenturesRefertoNoteVIII-3.(1)SignificantAssociatedEnterprisesfordetailsofsignificantassociatedenterprisesoftheCompany.InformationonotherjointventuresorassociatedenterprisesoccurringconnectedtransactionswiththeCompanyinReportingPeriod,orformingbalanceduetoconnectedtransactionsmadeinpreviousperiod:
| Name | RelationshipwiththeCompany |
| PuchuangJiakangTechnologyCo,Ltd. | Associatedenterprise |
| DongguanKonkaElectronicSmartTechnologyCo.,Ltd. | Associatedenterprise |
| ShenzhenKonkaE-displayCo.,Ltd. | Associatedenterprise |
| WanjunTechnology(Kunshan)Co.,Ltd. | Associatedenterprise |
| E3info(Hainan)TechnologyCo.,Ltd. | Associatedenterprise |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | Associatedenterprise |
| AnhuiKaikaiSihjieE-commerceCo.,Ltd. | Associatedenterprise |
| ShenzhenKonkaSmartElectricAppliancesTechnologyCo.,Ltd. | Associatedenterprise |
| ShandongKonkaSmartElectricalApplianceCo.,Ltd. | Associatedenterprise |
| HenanKonkaSmartElectricalApplianceCo.,Ltd. | Associatedenterprise |
| ShenzhenYaodeTechnologyCo.,Ltd. | Associatedenterprise |
| HeilongjiangLongkangSmartElectricalApplianceCo.,Ltd. | Associatedenterprise |
| Name | RelationshipwiththeCompany |
| BinzhouBeihaiWeiqiaoSolidWasteTreatmentCo.,Ltd. | Associatedenterprise |
| ChongqingQingjiaElectronicsCo.,Ltd. | Associatedenterprise |
| ChuzhouKangxinHealthIndustryDevelopmentCo.,Ltd. | Associatedenterprise |
| DongguanKonkaInvestmentCo.,Ltd. | Associatedenterprise |
| ShenzhenJielunteTechnologyCo.,Ltd. | Associatedenterprise |
| FeidiTechnology(Shenzhen)Co.,Ltd.anditssubsidiaries | Associatedenterprise |
| ShenzhenRF-LINKTechnologyCo.,Ltd | Associatedenterprise |
4.InformationonOtherRelatedParties
| Name | RelationshipwiththeCompany |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | Minorityshareholderofsubsidiary |
| ShenzhenJinzhuIndustryCo.,Ltd | Minorityshareholderofsubsidiary |
| HOHOELECTRICAL&FURNITURECO.,LIMITED | Minorityshareholderofsubsidiary |
| ShenzhenTradeLinkSupplyChainManagementCo.,Ltd. | Minorityshareholderofsubsidiary |
| HuanjiaGroupCo.,Ltd | Minorityshareholderofsubsidiary |
| AUJETINDUSTRYLIMITED | Minorityshareholderofsubsidiary |
| HandianGroupCo.,Ltd. | Minorityshareholderofsubsidiary |
| ChongqingLiangshanIndustrialInvestmentCo.,Ltd. | Minorityshareholderofsubsidiary |
| ShenzhenUnifortuneSupplyChainManagementCo.,Ltd | Minorityshareholderofsubsidiary |
| ShenzhenMusenIndustrialCo.,Ltd. | Minorityshareholderofsubsidiary |
| YantaiBaijiangyuanEnterpriseManagementCenter(LimitedPartnership) | Minorityshareholderofsubsidiary |
| YantaiFengqingtaiInvestmentCenter(LimitedPartnership) | Minorityshareholderofsubsidiary |
| Name | RelationshipwiththeCompany |
| YantaiQingrunyuanEnterpriseManagementCenter(LimitedPartnership) | Minorityshareholderofsubsidiary |
| YantaiQingjiangchuanEnterpriseManagementCenter(LimitedPartnership) | Minorityshareholderofsubsidiary |
| HuZehong | Minorityshareholderofsubsidiary |
| ChuzhouState-ownedAssetsOperationCo.,Ltd. | Minorityshareholderofsubsidiary |
| ShenzhenGuoxinMicroelectronicsCo.,Ltd. | Minorityshareholderofsubsidiary |
| YudongEnvironmentalTechnologyCo.,Ltd. | Minorityshareholderofsubsidiary |
| ShenzhenHenglongtongElectronicTechnologyCo.,Ltd. | Minorityshareholderofsubsidiary |
| GuizhouHuajinrunTechnologyGroupCo.,Ltd. | Minorityshareholderofsubsidiary |
| WuGuoren | Minorityshareholderofsubsidiary |
| EconHoldings(Yantai)Co.,Ltd. | Minorityshareholderofsubsidiary |
| ZhuXinming | Minorityshareholderofsubsidiary |
| LiangRuiling | Minorityshareholderofsubsidiary |
| DaiYaojin | Minorityshareholderofsubsidiary |
| XiaoYongsong | Minorityshareholderofsubsidiary |
| Unifortune(HongKong)Co.,Ltd. | Companiescontrolledbyminorityshareholdersofsubsidiaries |
| HaiyingTechnologyGroup(HongKong)Co.,Ltd. | Thecompanycontrolledbytheultimatecontrolleroftheminorityshareholdersofthesubsidiary |
| ChongqingLvfengRenewableResourcesCo.,Ltd. | Thecompanycontrolledbytheultimatecontrolleroftheminorityshareholdersofthesubsidiary |
| JiangxiMeijiEnterpriseCo.,Ltd. | Thecompanycontrolledbytheultimatecontrolleroftheminorityshareholdersofthesubsidiary |
| ChongqingRuiyinRenewableResourcesCo.,Ltd. | Theultimatecontrolleroftheminorityshareholdersofthesubsidiary |
| Name | RelationshipwiththeCompany |
| ShenzhenJunxingCommunicationTechnologyCo.,Ltd. | Companiescontrolledbydirectorsofsubsidiaries |
| ShenzhenKonkaYifangTechnologyCo.,Ltd. | Affiliatedsubsidiary |
| ZhanxiangElectronicTechnologyCo.,Ltd. | Affiliatedsubsidiary |
| ChongqingKonkaFuzeRealEstateCo.,Ltd. | Affiliatedsubsidiary |
| ChuzhouKangjinHealthIndustryDevelopmentCo.,Ltd. | Participatingcompany |
| DaiRongxing | Closefamilymembersofminorityshareholders |
| HuJiawen | Closefamilymembersofminorityshareholders |
(II)Related-partyTransactions
1.Relatedtransactionsofpurchaseandsaleofgoods,provisionandacceptanceof
services（
）Purchasinggoods/receivingservices
| Relatedparty | Content | ReportingPeriod | Sameperiodoflastyear |
| HaiyingTechnologyGroup(HongKong)Co.,Ltd. | Purchaseofgoods | 6,855,261,976.07 | 1,816,674,632.68 |
| ChongqingLvfengRenewableResourcesCo.,Ltd. | Purchaseofgoodsandservices | 1,309,805,108.45 | |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | Purchaseofgoods | 698,636,167.54 | 966,302,431.62 |
| PuchuangJiakangTechnologyCo,Ltd. | Purchaseofgoods | 373,695,088.37 | 48,793,853.67 |
| ShenzhenJielunteTechnologyCo.,Ltd. | Purchaseofgoods | 90,173,202.26 | 163,434,289.73 |
| ShenzhenJinzhuIndustryCo.,Ltd | Purchaseofgoods | 62,584,789.34 | 29,039,118.22 |
| Relatedparty | Content | ReportingPeriod | Sameperiodoflastyear |
| OCTGroupCo.,Ltd.anditssubsidiariesandassociatedenterprises | Purchaseofgoodsandservices | 31,079,892.62 | 19,021,005.05 |
| ChongqingRuiyinRenewableResourcesCo.,Ltd. | Purchaseofgoodsandservices | 55,093,641.50 | |
| HOHOELECTRICAL&FURNITURECO.,LIMITED | Purchaseofgoods | 50,041,528.06 | |
| DongguanKonkaElectronicsSmartTechnologyCo.,Ltd. | Purchaseofgoods | 15,988,606.86 | |
| ShenzhenKonkaE-displayCo.,Ltd. | Purchaseofgoodsandservices | 13,372,446.76 | |
| WanjunTechnology(Kunshan)Co.,Ltd.(formerlyknownas“KunshanKonkaElectronicsCo.,Ltd.”) | Purchaseofgoods | 6,317,019.16 | 5,787,467.53 |
| ShenzhenTradeLinkSupplyChainManagementCo.,Ltd. | Purchaseofgoods | 5,617,295.12 | 146,267,088.53 |
| E3info(Hainan)TechnologyCo.,Ltd. | Purchaseofgoodsandservices | 5,006,164.56 | |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | Purchaseofgoodsandservices | 2,798,788.35 | 31,244,486.68 |
| AnhuiKaikaiSihjieE-commerceCo.,Ltd. | Purchaseofgoods | 306,706.67 | 23,713,758.38 |
| HuanjiaGroupCo.,Ltd. | Purchaseofgoods | 434,647,381.86 | |
| Subtotalofotherrelatedparties | Purchaseofgoodsandservices | 5,158,078.73 | 22,702,314.29 |
（2）Informationofsalesofgoodsandprovisionoflaborservice
| Relatedparty | Content | ReportingPeriod | SamePeriodoflastyear |
| AnhuiKaikaiSihjieE-commerceCo.,Ltd. | Salesofgoodsandrenderlaborservice | 443,843,708.04 | 582,052,622.44 |
| HOHOELECTRICAL&FURNITURECO.,LIMITED | Salesofgoodsandrenderlaborservice | 115,451,594.04 | 56,895,724.52 |
| OCTGroupCo.,Ltd.anditssubsidiariesandassociatedenterprises | Salesofgoodsandrenderlaborservice | 112,863,678.04 | 127,353,778.04 |
| ShenzhenKonkaSmartElectricalApparatusTechnologyCo.,Ltd. | Salesofgoodsandrenderlaborservice | 75,623,621.40 | |
| ShenzhenJielunteTechnologyCo.,Ltd.anditssubsidiaries | Salesofgoods | 66,305,912.40 | 22,467,519.24 |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | Salesofgoodsandrenderlaborservice | 47,780,642.42 | 42,844,475.34 |
| ShandongKonkaSmartElectricalApplianceCo.,Ltd. | Salesofgoods | 47,720,206.98 | 76,954,416.15 |
| HenanKonkaSmartElectricalApplianceCo.,Ltd. | Salesofgoods | 35,730,677.80 | 39,294,628.59 |
| ShenzhenKonkaE-displayCommercialDisplayCo.,Ltd. | Salesofgoodsandrenderlaborservice | 33,606,160.84 | 19,335,967.50 |
| Relatedparty | Content | ReportingPeriod | SamePeriodoflastyear |
| ShenzhenYaodeTechnologyCo.,Ltd. | Salesofgoods | 32,701,728.34 | 372,927,101.60 |
| E3info(Hainan)TechnologyCo.,Ltd. | Salesofgoodsandrenderlaborservice | 17,158,367.26 | |
| AUJETINDUSTRYLIMITED | Salesofgoods | 9,332,254.17 | 245,808,684.12 |
| FeidiTechnology(Shenzhen)Co.,Ltd.anditssubsidiaries | Renderlaborservice | 4,338,841.78 | |
| Unifortune(HongKong)Co.,Ltd. | Salesofgoods | 3,582,516.56 | |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | Salesofgoodsandrenderlaborservice | 2,701,125.58 | 4,350,063.13 |
| HeilongjiangLongkangSmartElectricalApplianceCo.,Ltd. | Salesofgoods | 5,837.17 | 17,497,025.47 |
| WanjunTechnology(Kunshan)Co.,Ltd.(formerlyknownas“KunshanKonkaElectronicsCo.,Ltd.”) | Salesofgoods | 2,182,486.57 | |
| ShenzhenTradeLinkSupplyChainManagementCo.,Ltd. | Salesofgoodsandrenderlaborservice | 28,711,000.66 | |
| DongguanKonkaElectronicsSmartTechnologyCo.,Ltd. | Salesofgoods | 22,454,105.62 | |
| Subtotalofotherrelatedparties | Salesofgoodsandrenderlaborservice | 3,415,674.73 | 6,238,691.36 |
2.InformationonRelated-partyLease
（1）Leasesituation
| Leasee | Lessee'sname | Category | TheleasefeeconfirmedintheReportingPeriod | Theleasefeeconfirmedinthesameperiodoflastyear |
| OCTGroupCo.Ltd.Anditssubsidiaries | KonkaGroupCo.,Ltd. | Commercialresidencesandofficebuildings | 1,793,893.44 | 1,640,143.78 |
| OCTGroupCo.Ltd.Anditssubsidiaries | KonkaVenturesDevelopment(Shenzhen)Co.,Ltd. | Commercialresidencesandofficebuildings | 25,095,479.94 |
3.InformationonRelated-partyGuarantee（
）TheCompanywasguarantor
| Securedparty | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| NingboKanghanruiElectric | 6,000.00 | CNY | 2020-7-27 | 2021-7-26 | Not |
| KunshanKangshengInvestmentDevelopmentCo.,Ltd. | 24,500.00 | CNY | 2019-9-23 | 2022-9-22 | Not |
| PengrunTechnology | 5,000.00 | CNY | 2020-8-25 | 2021-8-25 | Not |
| AnhuiTongchuang | 4,500.00 | CNY | 2019-8-1 | 2020-8-1 | Not |
| AnhuiTongchuang | 3,000.00 | CNY | 2019-11-5 | 2020-11-4 | Not |
| AnhuiTongchuang | 5,000.00 | CNY | 2019-12-25 | 2020-12-25 | Not |
| AnhuiTongchuang | 3,500.00 | CNY | 2020-1-13 | 2021-1-13 | Not |
| AnhuiTongchuang | 5,800.00 | CNY | 2020-3-11 | 2021-3-11 | Not |
| AnhuiTongchuang | 3,000.00 | CNY | 2020-8-7 | 2021-8-5 | Not |
| AnhuiTongchuang | 3,000.00 | CNY | 2020-10-19 | 2021-10-18 | Not |
| DongguanKonka | 3,000.00 | CNY | 2020-1-16 | 2021-1-15 | Not |
| DongguanKonka | 2,000.00 | CNY | 2019-11-8 | 2024-11-5 | Not |
| ElectronicsTechnology | 6,000.00 | CNY | 2020-6-9 | 2021-6-8 | Not |
| ElectronicsTechnology | 10,000.00 | CNY | 2020-7-24 | 2021-6-28 | Not |
| ElectronicsTechnology | 50,000.00 | CNY | 2020-11-16 | 2021-5-22 | Not |
| ElectronicsTechnology | 8,000.00 | CNY | 2020-8-14 | 2021-6-9 | Not |
| EconTechnology | 5,000.00 | CNY | 2019-11-14 | 2020-11-13 | Not |
| EconTechnology | 8,800.00 | CNY | 2020-4-29 | 2021-4-28 | Not |
| EconTechnology | 5,000.00 | CNY | 2020-5-25 | 2021-5-24 | Not |
| EconTechnology | 24,000.00 | CNY | 2020-6-5 | 2021-3-17 | Not |
| EconTechnology | 5,000.00 | CNY | 2020-9-22 | 2021-9-21 | Not |
| EconTechnology | 5,000.00 | CNY | 2020-8-21 | 2020-8-20 | Not |
| TelecommunicationTechnology | 7,500.00 | CNY | 2020-8-26 | 2021-8-26 | Not |
| SichuanKonka | 4,000.00 | CNY | 2019-3-18 | 2022-3-19 | Not |
| YibinOCTSanjiangPropertiesCo.,Ltd. | 14,000.00 | CNY | 2019-9-29 | 2022-9-28 | Not |
| XingDaHongYe | 5,800.00 | CNY | 2020-11-12 | 2022-11-12 | Not |
| XingDaHongYe | 2,000.00 | CNY | 2020-12-25 | 2023-12-25 | Not |
| BoluoKonkaPrecision | 2,500.00 | CNY | 2019-2-20 | 2021-2-20 | Not |
| BoluoKonkaPrecision | 2,480.11 | CNY | 2020-8-19 | 2023-8-19 | Not |
| JiangxiKonka | 11,960.58 | CNY | 2019-3-18 | 2021-9-18 | Not |
| JiangxiKonka | 5,500.00 | CNY | 2019-6-26 | 2022-6-25 | Not |
| JiangxiKonka | 6,500.00 | CNY | 2019-10-30 | 2022-10-30 | Not |
| JiangxiKonka | 990.00 | CNY | 2020-3-20 | 2022-3-19 | Not |
| JiangxiKonka | 6,000.00 | CNY | 2020-6-28 | 2021-6-27 | Not |
| JiangxiKonka | 3,000.00 | CNY | 2020-8-4 | 2021-8-4 | Not |
| JiangxiKonka | 10,000.00 | CNY | 2020-9-29 | 2023-9-29 | Not |
| JiangxiKonka | 10,000.00 | CNY | 2020-11-6 | 2023-12-6 | Not |
| JiangxiKonka | 5,000.00 | CNY | 2020-12-21 | 2022-12-31 | Not |
| JiangxiKonka | 1,000.00 | CNY | 2020-12-30 | 2023-12-30 | Not |
| NanoCrystallizedGlass | 10,000.00 | CNY | 2019-6-26 | 2022-6-25 | Not |
| Nano | 5,000.00 | CNY | 2019-12-20 | 2022-12-20 | Not |
| CrystallizedGlass | |||||
| NanoCrystallizedGlass | 5,000.00 | CNY | 2020-1-8 | 2023-1-8 | Not |
| NanoCrystallizedGlass | 5,000.00 | CNY | 2020-1-8 | 2022-1-8 | Not |
| NanoCrystallizedGlass | 990.00 | CNY | 2020-3-20 | 2022-3-19 | Not |
| NanoCrystallizedGlass | 5,975.00 | CNY | 2020-5-29 | 2022-11-29 | Not |
| NanoCrystallizedGlass | 7,000.00 | CNY | 2020-6-24 | 2021-6-23 | Not |
| NanoCrystallizedGlass | 6,000.00 | CNY | 2020-7-14 | 2023-7-14 | Not |
| XinfengMicrocrystalline | 5,000.00 | CNY | 2020-5-19 | 2023-5-19 | Not |
| XinfengMicrocrystalline | 3,478.85 | CNY | 2020-5-29 | 2022-11-29 | Not |
| XinfengMicrocrystalline | 7,200.00 | CNY | 2020-6-18 | 2021-6-17 | Not |
| XinfengMicrocrystalline | 2,100.00 | CNY | 2020-12-8 | 2023-12-8 | Not |
| XinfengMicrocrystalline | 7,200.00 | CNY | 2020-12-28 | 2021-12-27 | Not |
| HongKongKonka | 2,000.00 | USD | 2020-3-6 | 2021-2-19 | Not |
| HongKong | 20,000.00 | CNY | 2020-12-28 | 2021-9-9 | Not |
| Konka | |||||
| AnhuiKonka | 10,000.00 | CNY | 2020-11-25 | 2021-11-24 | Not |
| AnhuiKonka | 26,800.00 | CNY | 2020-12-24 | 2021-9-2 | Not |
| YibinKangrun | 10,000.00 | CNY | 2020-11-13 | 2024-12-31 | Not |
| RushanEcon | 29,000.00 | CNY | 2016-12-29 | 2026-12-28 | Not |
| SubeiKangrunWater | 77,600.00 | CNY | 2020-3-10 | 2035-3-9 | Not |
| WuhanRunyuanWastewater | 55,200.00 | CNY | 2020-1-20 | 2040-1-19 | Not |
| DayiKangrunWater | 27,400.00 | CNY | 2020-4-29 | 2035-4-10 | Not |
| SichuanKonka | 14,000.00 | CNY | 2018-5-28 | 2027-5-24 | Not |
| Xi'anGaolingFoodWasteHarmlessTreatmentFranchiseProjectCooperationAgreement | 24,571.00 | CNY | 2020-12-17 | 2035-12-16 | Not |
（
）TheCompanywassecuredparty
| Guarantor: | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| OCTGroupCo.Ltd. | 200,000.00 | CNY | 2020-6-19 | 2022-6-19 | Not |
| OCTGroupCo.Ltd. | 500,000.00 | CNY | 2019-1-10 | 2023-7-21 | Not |
| ShenzhenMusenEnterpriseCo.,Ltd. | 3,325.73 | CNY | 2019-3-19 | 2022-3-18 | Not |
| Guarantor: | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| YantaiBaijiangyuanBusinessManagementCenter(LP) | 23,851.98 | CNY | 2019-6-6 | 2021-6-1 | Not |
| YantaiFengqingtaiInvestmentCenter(LP) | 10,606.39 | CNY | 2019-6-6 | 2021-6-1 | Not |
| YantaiQingrunyuanBusinessManagementCenter(LP) | 9,749.83 | CNY | 2019-6-6 | 2021-6-1 | Not |
| YantaiQingjiangchuanBusinessManagementCenter(LP) | 676.29 | CNY | 2019-6-6 | 2021-6-1 | Not |
| YantaiBaijiangyuanBusinessManagementCenter(LP) | 13,748.59 | CNY | 2019-4-23 | 2021-5-24 | Not |
| YantaiFengqingtaiInvestmentCenter(LP) | 6,113.66 | CNY | 2019-4-23 | 2021-5-24 | Not |
| YantaiQingrunyuanBusinessManagementCenter(LP) | 5,619.93 | CNY | 2019-4-23 | 2021-5-24 | Not |
| YantaiQingjiangchuanBusinessManagementCenter | 389.82 | CNY | 2019-4-23 | 2021-5-24 | Not |
| Guarantor: | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| (LP) | |||||
| HuZehong | 980.00 | CNY | 2020-1-24 | 2021-1-23 | Not |
| HuZehong | 1,959.02 | CNY | 2020-4-21 | 2021-4-20 | Not |
| HuZehong | 490.00 | CNY | 2020-4-22 | 2021-4-20 | Not |
| HuZehong | 2,450.00 | CNY | 2020-8-4 | 2021-8-3 | Not |
| HuZehong | 183.75 | CNY | 2020-11-3 | 2021-11-2 | Not |
| HuZehong | 142.10 | CNY | 2020-11-4 | 2021-11-2 | Not |
| HuZehong | 1,014.30 | CNY | 2020-11-5 | 2021-11-2 | Not |
| HuZehong | 105.35 | CNY | 2020-11-16 | 2021-11-2 | Not |
| HuZehong | 24.50 | CNY | 2020-11-30 | 2021-11-2 | Not |
| HuZehong | 343.00 | CNY | 2020-12-31 | 2021-1-31 | Not |
| HuZehong,LiangRuiling,DaiYaojin | 5,800.00 | CNY | 2020-11-12 | 2022-11-12 | Not |
| HuZehong,LiangRuiling,DaiYaojin | 2,000.00 | CNY | 2020-12-25 | 2023-12-25 | Not |
| ChuzhouState-ownedAssetsManagementCo.,Ltd. | 2,200.00 | CNY | 2020-11-25 | 2021-11-24 | Not |
| ChuzhouState-ownedAssetsManagementCo.,Ltd. | 5,896.00 | CNY | 2020-12-24 | 2021-9-2 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 14,161.00 | CNY | 2020-10-12 | 2021-10-11 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 4,900.00 | CNY | 2020-11-6 | 2023-11-6 | Not |
| Guarantor: | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 5,860.69 | CNY | 2019-3-18 | 2021-9-18 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 2,940.00 | CNY | 2020-6-28 | 2021-6-27 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 2,695.00 | CNY | 2019-6-26 | 2022-6-25 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 3,185.00 | CNY | 2019-10-30 | 2022-10-30 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 485.10 | CNY | 2020-3-20 | 2022-3-19 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 1,470.00 | CNY | 2020-8-4 | 2021-8-4 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 4,900.00 | CNY | 2020-9-29 | 2023-9-29 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 490.00 | CNY | 2020-12-30 | 2023-12-30 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 3,528.00 | CNY | 2020-6-18 | 2021-6-17 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 2,450.00 | CNY | 2020-5-19 | 2023-5-19 | Not |
| Guarantor: | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 1,704.64 | CNY | 2020-5-29 | 2022-11-29 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 1,029.00 | CNY | 2020-12-8 | 2023-12-8 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 3,528.00 | CNY | 2020-12-28 | 2021-12-27 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming,XiongMuzhi,ZengXiaohong,ZhuChengfu | 4,900.00 | CNY | 2019-6-26 | 2022-6-25 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 2,450.00 | CNY | 2019-12-20 | 2022-12-20 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 2,450.00 | CNY | 2020-1-8 | 2023-1-8 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 2,450.00 | CNY | 2020-1-8 | 2022-1-8 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 485.10 | CNY | 2020-3-20 | 2022-3-19 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 2,927.75 | CNY | 2020-5-29 | 2022-11-29 | Not |
| Guarantor: | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 3,430.00 | CNY | 2020-6-24 | 2021-6-23 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 2,940.00 | CNY | 2020-7-14 | 2023-7-14 | Not |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | 4,533.96 | CNY | 2020-6-24 | 2021-5-20 | Not |
| ShenzhenGuoxinMicro-electronicsCo.,Ltd. | 2,630.44 | CNY | 2020-8-22 | 2021-8-21 | Not |
| YudongEnvironmentalProtectionTechnologyCo.,Ltd. | 8,820.00 | CNY | 2019-8-24 | 2021-6-5 | Not |
| YuanShengxiang | CNY | 2019-8-24 | 2021-6-5 | Not | |
| ShenzhenHenglongtongTechnologyCo.,Ltd. | 1,041.09 | CNY | 2021-1-1 | 2021-12-31 | Not |
| HuayingGaokedeElectronicTechnologyCo.,Ltd. | 40,146.00 | CNY | 2018-1-1 | 2021-12-31 | Not |
| HuayingGaokelongElectronicTechnologyCo.,Ltd. | 40,146.00 | CNY | 2018-1-1 | 2021-12-31 | Not |
| GuizhouHuajinrunTechnologyCo.Ltd. | 5,740.57 | USD | 2021-1-1 | 2021-12-31 | Not |
| ShenhzhenTradeLinkSupplyChain | 7,331.18 | USD | 2018-9-27 | 2021-4-30 | Not |
| Guarantor: | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| ManagementCo.,Ltd. | |||||
| AUJETINDUSTRYLIMITED | 21,641.85 | USD | 2018-5-17 | 2021-4-30 | Not |
| ShenzhenUnifortuneSupplyChainManagementCo.,Ltd. | 8,856.25 | USD | 2019-7-12 | 2023-6-30 | Not |
| ShenzhenUnifortuneSupplyChainManagementCo.,Ltd. | 14,438.56 | USD | 2018-1-1 | 2023-6-30 | Not |
| WuGuorenandXiaoYongsong | 5,914.82 | USD | 2018-8-21 | 2023-12-31 | Not |
| WuGuorenandXiaoYongsong | 43,481.93 | USD | 2019-1-1 | 2023-12-31 | Not |
| ElectronicsTechnology | 50,000.00 | CNY | 2019-9-26 | 2020-9-25 | Not |
| ElectronicsTechnology | 50,000.00 | CNY | 2019-9-27 | 2020-9-26 | Not |
4.BorrowingsofFunds
| Name | Amount | Currency | Startdate | Duedate | Note |
| Borrowing | |||||
| OCTGroupCo.Ltd. | 111,060,000.00 | CNY | 2020/11/12 | 2022/12/09 | |
| OCTGroupCo.Ltd. | 500,000,000.00 | CNY | 2020/12/07 | 2022/12/09 | |
| EconHoldings(Yantai)Co.,Ltd. | 37,559,970.00 | CNY | 2020/11/23 | 2021/11/22 | |
| E3info(Hainan)TechnologyCo., | 50,000,000.00 | CNY | 2020/12/05 | 2021/06/04 |
| Name | Amount | Currency | Startdate | Duedate | Note |
| Ltd. | |||||
| ChuzhouHanshangElectricApplianceCo.,Ltd. | 134,750,000.00 | CNY | 2020/02/01 | 2021/01/31 | |
| Total | 833,369,970.00 | ||||
| Lending | |||||
| YibinOCTSanjiangPropertiesCo.,Ltd. | 35,000,000.00 | CNY | 2020/04/25 | 2021/04/24 | |
| YibinOCTSanjiangPropertiesCo.,Ltd. | 40,000,000.00 | CNY | 2018/10/25 | 2021/10/24 | |
| ChongqingKonkaFuzeRealEstateCo.,Ltd. | 188,430,000.00 | CNY | 2020/11/25 | 2021/11/24 | |
| ChongqingQingjiaElectronicsCo.,Ltd. | 8,900,000.00 | CNY | 2019/04/12 | 2020/04/11 | |
| YantaiKangyueInvestmentCo.,Ltd. | 128,527,000.00 | CNY | 2020/12/16 | 2021/12/15 | |
| ChuzhouKangxinHealthIndustryDevelopmentCo.,Ltd. | 132,880,000.00 | CNY | 2020/10/20 | 2021/08/23 | |
| ChuzhouKangxinHealthIndustryDevelopmentCo.,Ltd. | 20,000,000.00 | CNY | 2020/12/10 | 2021/12/09 | |
| ChuzhouKangjinHealthIndustryDevelopmentCo.,Ltd. | 58,800,000.00 | CNY | 2020/09/16 | 2021/09/15 | |
| ChuzhouKangjinHealthIndustryDevelopmentCo.,Ltd. | 77,547,400.00 | CNY | 2020/02/27 | 2021/01/12 | |
| ChuzhouKangjinHealthIndustryDevelopmentCo.,Ltd. | 24,500,000.00 | CNY | 2020/06/15 | 2021/06/14 | |
| DongguanKonkaInvestmentCo.,Ltd. | 22,231,944.48 | CNY | 2020/08/06 | 2021/08/05 | |
| DongguanKonkaInvestmentCo.,Ltd. | 7,000,000.00 | CNY | 2020/08/14 | 2021/08/05 | |
| DongguanKonkaInvestmentCo.,Ltd. | 166,768,055.5 | CNY | 2020/08/14 | 2021/08/05 |
| Name | Amount | Currency | Startdate | Duedate | Note |
| Total | 910,584,399.98 |
5.AssetsTransferofRelatedParty
| Name | Content | ReportingPeriod | Sameperiodoflastyear |
| ShenzhenKonkaHoldingGroupCo.,Ltd. | Assignmentofpatentrights | 188,200,000.00 | - |
| ShenzhenKonkaHoldingGroupCo.,Ltd. | Equitytransfer | 470,986,530.00 | - |
| ShenzhenOCTCapitalInvestmentManagementCo.,Ltd. | Equitytransfer | - | 63,520,500.00 |
| ShanghaiOCTInvestmentDevelopmentCo.,Ltd. | Equitytransfer | - | 122,254,344.00 |
| ShenzhenOCTPropertyCommercialDevelopmentCo.,Ltd. | Equitytransfer | - | 4,538,210.00 |
| Total | 659,186,530.00 | 190,313,054.00 |
6.InformationonRemunerationforKeyManagementPersonnel
| Item | ReportingPeriod(RMB’0,000) | Sameperiodoflastyear(RMB’0,000) |
| Totalremuneration | 2,953.87 | 2,872.87 |
(III)BalanceswithRelatedParty
1.AccountsReceivable
| Relatedparty | Endingbalance | Beginningbalance | ||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | |
| Accountsreceivable: | ||||
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | 153,854,753.25 | 3,170,897.81 | 19,822,544.45 | 402,397.65 |
| HOHOELECTRICAL&FURNITURECO.,LIMITED | 124,721,168.78 | 6,447,669.98 | 112,180,062.15 | 2,277,255.26 |
| Relatedparty | Endingbalance | Beginningbalance | ||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | |
| OCTGroupCo.Ltd.Anditssubsidiaries,associatedenterprises | 68,938,082.60 | 1,503,214.49 | 21,207,204.72 | 430,506.25 |
| ShenzhenYaodeTechnologyCo.,Ltd. | 134,098,413.80 | 12,181,165.68 | 119,160,752.64 | 2,426,038.42 |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | 38,956,293.90 | 5,163,003.42 | 38,384,430.47 | 1,536,141.16 |
| ShenzhenJielunteTechnologyCo.,Ltd.anditssubsidiaries | 38,228,985.16 | 974,569.50 | 75,330,999.32 | 1,645,079.86 |
| ShenzhenKonkaE-displayCo.,Ltd. | 12,709,150.65 | 343,432.80 | 63,110,212.25 | 1,281,137.31 |
| WanjunTechnology(Kunshan)Co.,Ltd.(formerlyknownas“KunshanKonkaElectronicsCo.,Ltd.” | 235,078.99 | 4,772.10 | ||
| Subtotalofotherrelatedparties | 67,279,675.44 | 5,088,645.55 | 13,829,893.57 | 1,940,210.75 |
| Total | 638,786,523.58 | 34,872,599.23 | 463,261,178.56 | 11,943,538.76 |
| Notesreceivable: | ||||
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | 2,231,739.87 | 37,000,000.00 | ||
| Subtotalofotherrelatedparties | 2,243,687.84 | 6,739,171.02 | ||
| Total | 4,475,427.71 | 43,739,171.02 | ||
| Interestreceivable: | ||||
| ChuzhouKangjinHealthIndustryDevelopmentCo.,Ltd. | 7,564,562.01 | 1,120,466.66 | ||
| Relatedparty | Endingbalance | Beginningbalance | ||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | |
| YantaiKangyueInvestmentCo.,Ltd. | 10,910,514.22 | |||
| ChongqingKonkaFuzeRealEstateCo.,Ltd. | 15,828,119.98 | |||
| ChongqingQingjiaElectronicsCo.,Ltd. | 1,244,022.19 | |||
| Total | 34,303,196.21 | 2,364,488.85 | ||
| Dividendsreceivable | ||||
| ChongqingQingjiaElectronicsCo.,Ltd. | 547,848.62 | 547,848.62 | ||
| BinzhouBeihaiWeiqiaoSolidWasteTreatmentCo.,Ltd. | 4,400,000.00 | |||
| DaiRongxing | 4,947,848.62 | 547,848.62 | ||
| Otherreceivables: | ||||
| ChongqingLiangshanIndustrialInvestmentCo.,Ltd. | 262,878,000.00 | 5,362,711.20 | ||
| HaiyingTechnologyGroup(HongKong)Co.,Ltd. | 247,361,920.74 | 5,046,183.18 | ||
| JiangxiMeijiEnterpriseCo.,Ltd. | 93,512,640.31 | 18,833,017.29 | 93,612,640.31 | 2,068,839.35 |
| DaiRongxing | 82,914,871.05 | 21,175,816.98 | 85,104,483.48 | 4,161,412.98 |
| OCTGroupCo.,Ltd.anditssubsidiaries,associatedenterprises | 30,431,127.39 | 14,223,018.11 | 29,609,699.81 | 8,794,143.64 |
| HuanjiaGroupCo.,Ltd. | 23,065,103.20 | 9,226,041.28 | 23,065,103.20 | 4,613,020.64 |
| HOHOELECTRICAL&FURNITURECO.,LIMITED | 5,519,421.05 | 112,596.19 | ||
| HuJiawen | 251,625.20 | 12,300.31 | ||
| Relatedparty | Endingbalance | Beginningbalance | ||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | |
| Subtotalofotherrelatedparties | 473,279.18 | 21,303.41 | 84,194.95 | 6,951.75 |
| Total | 746,156,362.92 | 74,000,687.64 | 231,727,746.95 | 19,656,668.67 |
| Prepayments: | ||||
| HaiyingTechnologyGroup(HongKong)Co.,Ltd. | 306,033,571.06 | 439,434,346.00 | ||
| ShenzhenKonkaInformationNetworkCo.,Ltd. | 40,220,535.22 | 40,983,577.99 | ||
| ShenzhenJielunteTechnologyCo.,Ltd.anditssubsidiaries | 13,483,626.36 | 13,763,739.19 | ||
| HOHOELECTRICAL&FURNITURECO.,LIMITED | 7,655,079.81 | |||
| PuchuangJiakangTechnologyCo,Ltd. | 5,111,181.00 | 39,920,926.00 | ||
| ShenzhenUnifortuneSupplyChainManagementCo.,Ltd. | 28,623,157.08 | |||
| Subtotalofotherrelatedparties | 5,647,733.34 | 883,108.32 | ||
| Total | 378,151,726.79 | 563,608,854.58 | ||
| Currentportionofnon-currentassets: | ||||
| OCTGroupCo.,Ltd.anditssubsidiaries,associatedenterprises | 75,000,000.00 | 60,000,000.00 | ||
| FeidiTechnology(Shenzhen)Co.,Ltd. | 30,630,065.09 | 31,827,347.83 | ||
| Relatedparty | Endingbalance | Beginningbalance | ||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | |
| Subtotalofotherrelatedparties | 6,873,893.20 | |||
| Total | 105,630,065.09 | 98,701,241.03 | ||
| Othercurrentassets: | ||||
| ChongqingKonkaFuzeRealEstateCo.,Ltd. | 188,430,000.00 | |||
| DongguanKonkaInvestmentCo.,Ltd. | 196,000,000.00 | |||
| ChuzhouKangjinHealthIndustryDevelopmentCo.,Ltd. | 160,847,400.00 | 58,800,000.00 | ||
| ChuzhouKangxinHealthIndustryDevelopmentCo.,Ltd. | 152,880,000.00 | |||
| YantaiKangyueInvestmentCo.Ltd. | 128,527,000.00 | 128,983,984.89 | ||
| Total | 826,684,400.00 | 187,783,984.89 | ||
| Long-termreceivables: | ||||
| FeidiTechnology(Shenzhen)Co.,Ltd.anditssubsidiaries | 12,749,762.58 | 37,980,796.18 | ||
| SubtotalofotherrelatedpartiesTotal | 421,998.80 | |||
| Total | 12,749,762.58 | 38,402,794.98 | ||
| Othernon-currentassets: | ||||
| OCTGroupCo.,Ltd.anditssubsidiaries,associatedenterprises | 40,000,000.00 | |||
| ChongqingQingjiaElectronicsCo.,Ltd. | 10,867,888.84 | 8,900,000.00 | ||
| Relatedparty | Endingbalance | Beginningbalance | ||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | |
| Total | 10,867,888.84 | 48,900,000.00 | ||
2.AccountsPayable
| Relatedparty | Endingcarryingamount | Beginningcarryingamount |
| Accountspayable: | ||
| ChongqingLvfengRenewableResourcesCo.,Ltd. | 18,510,819.80 | |
| ShenzhenJielunteTechnologyCo.,Ltd.anditssubsidiaries | 12,618,777.74 | 35,164,809.08 |
| OCTGroupCo.,Ltd.anditssubsidiaries,associatedenterprises | 10,042,155.58 | |
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | 2,633,353.42 | 60,733,455.22 |
| WanjunTechnology(Kunshan)Co.,Ltd.(formerlyknownas“KunshanKonkaElectronicsCo.,Ltd.”) | 434,816.51 | 13,012,382.66 |
| Subtotalofotherrelatedparties | 38,370,021.37 | 20,584,918.26 |
| Total | 82,609,944.42 | 129,495,565.22 |
| Notespayable: | ||
| Subtotalofotherrelatedparties | 17,085,784.47 | 10,863,352.03 |
| Total | 17,085,784.47 | 10,863,352.03 |
| Contractliabilities/othernon-currentliabilities: | ||
| ShenzhenJielunteTechnologyCo.,Ltd.anditssubsidiaries | 27,430,700.76 | |
| OCTGroupCo.,Ltd.anditssubsidiaries,associatedenterprises | 15,357,854.41 | 15,378,600.41 |
| WanjunTechnology(Kunshan)Co.,Ltd.(formerlyknownas“KunshanKonkaElectronicsCo.,Ltd.”) | 16,903.16 | 13,150,116.07 |
| Relatedparty | Endingcarryingamount | Beginningcarryingamount |
| ShenzhenUnifortuneSupplyChainManagementCo.,Ltd. | 28,673,472.74 | |
| Subtotalofotherrelatedparties | 4,501,631.71 | 395,776.64 |
| Total | 47,307,090.04 | 57,597,965.86 |
| Otherpayables: | ||
| ChuzhouHanshangElectricApplianceCo.,Ltd. | 151,494,362.56 | 94,093,715.34 |
| ChongqingLvfengRenewableResourcesCo.,Ltd. | 5,800,221.60 | |
| E3info(Hainan)TechnologyCo.,Ltd. | 50,166,438.36 | |
| FeidiTechnology(Shenzhen)Co.,Ltd.anditssubsidiaries | 13,215,861.75 | 11,767,561.85 |
| ShenzhenJielunteTechnologyCo.,Ltd.anditssubsidiaries | 786,209.02 | 10,240,000.00 |
| ShenzhenYaodeTechnologyCo.,Ltd. | 280,000.00 | 39,727,606.67 |
| Subtotalofotherrelatedparties | 6,178,569.39 | 7,224,602.98 |
| Total | 227,921,662.68 | 163,053,486.84 |
| Currentportionofnon-currentliabilities: | ||
| OCTGroupCo.,Ltd.anditssubsidiaries | 10,777,675.49 | 7,512,375.00 |
| Total | 10,777,675.49 | 7,512,375.00 |
| Long-termpayables: | ||
| OCTGroupCo.,Ltd.anditssubsidiariesandassociates | 40,485,591.71 | 41,434,396.98 |
| Total | 40,485,591.71 | 41,434,396.98 |
XII.Contingency
(1)AsthecompanyholdscommercialbillsguaranteedtobeacceptedbyJiangsuHongtuHigh-TechCo.,Ltd.,theacceptorhasnotpaidthebillsaftermaturity.Thecompany,astheplaintiff,filedalawsuitwiththecourtforbillswithatotalamountof200millionyuan.ThedebtorsHongtuSanpowerTechnologyCo.,Ltd.,JiangsuHongtuHighTechnologyCo.,Ltd.,SanpowerGroupCo.,Ltd.,NanjingJiongjiongElectronicTechnologyCo.,Ltd.,andShenzhen
QianhaiBenniuAgriculturalTechnologyCo.,Ltd.bearjointandseveralliabilityforthesettlementofthebillamountandoverdueinterest.InJuly2019,thecompanyfiledalawsuitwiththecourt,andthecourthaspreservedthedefendant'scorrespondingproperty.Asofthedateofissuanceofthisreport,propertyexecutionisongoing.
(2)TheCompanyheldcommercialacceptancebillsofShanghaiHuaxinInternationalGroupCo.,Ltd.,whiletheacceptorfailedtoacceptthematuredbills.TheCompanyastheplaintifffiledalawsuitforbillsofRMB300,018,021.01tothecourt,askedbillacceptorandShanghaiHuaxinInternationalGroupCo.,Ltd.involvesbillsbeforehandthebillamountanddefaultinterestshallbearjointliability.Asofthedateofissuanceofthisreport,thecaseinvolving150millionyuaninthecasehasbeeninthecompulsoryexecutionstage,andtheshareholderhasbeenaddedasthepersontobeexecutedinthecase;thecourtsoftheremaining150millioncaseshaveruledthatthedefendantshouldpaybillsandinteresttoKonkaGroupEnforced.Asofthedateofissuanceofthisreport,propertyexecutionisongoing.
(3)TheCompanyheldcommercialacceptancebillsofChinaNuclearEngineering&ConstructionGroupCorporationLimited,whiletheacceptorfailedtoacceptthematuredbills.TheCompanyastheplaintifffiledalawsuitforbillsofRMB78,300,690.24tocourtamongcompaniesandinvolvesbillsbeforehandsthebillamountanddefaultinterestshallbearjointliability,andappliedforpropertypreservation.Asofthedateofissuanceofthisreport,morethan
1.75millionyuanhasbeenfrozeninthedefendant'sbankaccount;ThecourthasorderedthedefendanttopaythebillandthecorrespondinginteresttoKonkaGroup,andthecaseisbeingexecuted.
(4)TheCompany’ssubsidiary,KonkaFactoringheldcommercialacceptancebillsofCCCCFirstHarborEngineeringCo.,Ltd.,whiletheacceptorfailedtoacceptthematuredbills.TheCompanyastheplaintifffiledalawsuitforbillsofRMB65,221,300.00tocourtamongcompaniesandinvolvesbillsbeforehandsthebillamountanddefaultinterestshallbearjointlTheCompanyheldcommercialacceptancebillsofShanghaiHuaxinInternationalGroupCo.,Ltd.,whiletheacceptorfailedtoacceptthematuredbills.TheCompanyastheplaintifffiledalawsuitforbillsofRMB300,018,021.01tothecourt,askedbillacceptorandShanghaiHuaxinInternationalGroupCo.,Ltd.involvesbillsbeforehandthebillamountanddefaultinterestshallbearjointliability.Asofthedateofissuanceofthisreport,thecaseinvolving150millionyuaninthecasehasbeeninthecompulsoryexecutionstage,andtheshareholderhasbeenaddedasthepersontobeexecutedinthecase;thecourtsoftheremaining150millioncaseshaveruledthatthedefendantshouldpaybillsandinteresttoKonkaGroupEnforced.Asofthedateofissuanceofthisreport,thepropertyhasnotyetbeenimplemented.iability.Asofthedateofthisreport,thecaseisstillontrialandtheabovecommercialacceptancebillhasnotbeenhonored.
(5)ThedisputeamongtheCompanyandChinaEnergyElectricFuelCo.,Ltd.,ChinaEnergy(Shanghai)EnterpriseCo.,Ltd.,ShanghaiNengpingEnterpriseCo.,Ltd.andShenzhen
QianhaiBaoyingCommercialFactoringCo.,Ltd.overtherightofrecourseforbillsinvolvestheamountofthesubjectmatterofthelawsuittobeRMB50millionandthecorrespondinginterest.InSeptember2018,theCompanyfiledalawsuitwithShenzhenIntermediatePeople’sCourt,whichhaspreservedthedefendant’scorrespondingproperty.Thejudgmentofthiscasehascomeintoeffect.Inthecourt'sjudgment,defendantssuchasChinaEnergyElectricFuelCo.,Ltd.shallpaythebillamountofRMB50millionandtherelevantinteresttotheCompany.Asoftheissuancedateofthisreport,thecasewasintheexecutionstageandhasappliedtothecourtforadditionalshareholderstobetheexecutor.
(6)ThedisputeinbillrecourseamongthesubsidiaryoftheCompany,KonkaFactoring(Shenzhen)Co.,Ltd.,TahoeGroupCo.,Ltd.,FuzhouTaijiaEnterpriseCo.,Ltd.andXiamenLianchuangMicro-electronicsCo.,Ltd.,hasinvolvedwiththeunderlyingamountofRMB50millionandrelevantinterest.InJanuary2019,theCompanyfiledalawsuittoXiamenMunicipalIntermediatePeople’sCourt,andtheCompanyhasappliedforpropertypreservationtothecourt.Asoftheissuancedateofthisreport,thecasehasnotgivenjudgment.
(7)TheloancontractdisputesrelatedtotheCompany’ssubsidiaryJiangxiKonkaanditssubsidiaryXinfengMicrocrystaline,Nanocrystalline,ChinaGreatWallAMCJiangxiBranch,ZhuXinming,LengSumin,JiangxiXinzixin,JiangxiXinxinJian’anEngineering,JiangxiZhongyiDecorativeMaterial,JiangxiShanshiScienceandTechnologyandetc.DuetotheaffiliatedpartiesofJiangxiKonka’soriginalshareholder,i.e.JiangxiXinxinJian’anEngineering,JiangxiZhongyiDecorativeMaterial,JiangxiShanshiTechnology,failedtorepaytheloanonschedule.Therefore,ChinaGreatWallAMCJiangxiBranchfiledalawsuitanddemandedJiangxiXinxinJian’anEngineering,JiangxiZhongyiDecorativeMaterial,JiangxiShanshiScienceandTechnologytorepaytheloanprincipalofRMB300million,liquidateddamagesofRMB108,000andinterestofRMB13.65million.GuarantorsJiangxiKonka,ZhuXinming,LengSumin,NanoCrystallizedGlassandXinfengMicrocrystalinewererequiredtobearjointliabilityfortheabovedebts.
OnOctober31,2019,theJiangxiProvincialSuperiorPeople’sCourtruledinfirstinstancethatJiangxiXinxinJian’anEngineering,JiangxiZhongyiDecorativeMaterial,JiangxiShanshiTechnologywouldrepaytheloanprincipalofRMB100million,interestandliquidateddamagestoChinaGreatWallAMCJiangxiBranchwithin10daysfromtheeffectivedateofthejudgmentrespectively.JiangxiKonka,ZhuXinming,LengSumin,NanoCrystallizedGlassandXinfengMicrocrystalineshallbearjointandseveralliabilitiesforalldebtsdeterminedbytheabovejudgment.Thedefendantshaveappealedagainstthejudgmentofthefirstinstance,andtheSupremePeople'sCourthasacceptedthecase.Asofthedateofissuanceofthisreport,thecaseisstillundertrial.
TheactualcontrollerofKonkaNewMaterials,ZhuXinming,andhisspouse,LengSumin,asguarantors,providedatotalofaboutRMB143millionofrealestatemortgageguaranteeto
GreatWallAMCfortheaboveloans.ZhuXinmingandLengSuminalsoprovidedjointliabilityguarantees.InordertoavoidtheadverseimpactofthiscaseontheCompany,theCompanyhasagreedintheacquisitionagreementofJiangxiKonka,XinfengMicrocrystallineandnanometermicrocrystallinethatallcontingentdebtsincurredbyJiangxiKonkabytheoriginalshareholdersofKonkanewmaterialintheformofjointandseveralliability.JiangxiXinzixinRealEstateCo.,ltd.hasheldatotalofaboutRMB243millionofrealestateassetsasthecaseoftheanti-guaranteemortgagetoKonkagroupandwentthroughthemortgageregistrationprocedures.Asofthedateofthisreport,thecaseisstillontrialandtheabovecommercialacceptancebillhasnotbeenhonored.
(8)Thecompany'ssubsidiaryKonkaHuanjiaEnvironmentalProtectionTechnologyCo.,Ltd.andHuanjiaGroupCo.,Ltd.,DalianJinshundaMaterialRecyclingCo.,Ltd.andother14companieshavefiledacaseinvolvingdisputesoverthesaleandpurchasecontract,andtheamountinvolvedinthelitigationisRMB568,491,466.67.KonkaHuanjiaEnvironmentalTechnologyCo.,Ltd.hasappliedforthecourttosealupandfreezethedefendant'scorrespondingproperty.Asofthedateofissuanceofthisreport,noeffectivejudgmenthasbeenissuedforthiscase.
(9)ThecompanyholdsbankacceptancebillsacceptedbyTianjinMaterialsGroupFinanceCo.,Ltd.,andtheacceptordidnotredeemthebillsaftermaturity.Therefore,astheplaintiff,thecompanyfiledalawsuitwiththecourtforthebillswithatotalamountofRMB200,000,000.00andrequestedthebillstobehandedovertoWuhanJialianAgriculturalTechnologyDevelopmentCo.,Ltd.shallbeliableforthesettlementofthebillamountanddefaultinterest.Asofthedateofissuanceofthisreport,thecaseisstillundertrial,andtheabove-mentionedcommercialacceptancebillhasnotyetbeenpaid.
(10)ThedisputeinsalescontractbetweenthesubsidiaryoftheCompany,DongguanKonkaandDongguanGaonengPolymerMaterialsCo.,Ltd.,WangDong,ShenzhenXinlianXingyaoTradingCo.,Ltd.,ShenzhenJinchuanQianchaoNetworkTechnologyCo.,Ltd.,PuningJunlongTradingCo.,Ltd.,HuangZhihaohaveinvolvedinRMB89,405,998.78(includingRMB52,718,868.54ofoverduepayment,thecorrespondingliquidateddamagesandlitigationcosts).InDecember2020,thecompanyfiledalawsuitwiththecourt,andthecaseiscurrentlybeingheardinShenzhenNanshanDistrictPeople'sCourt.Asofthedateofissuanceofthisreport,noeffectivejudgmenthasbeenissuedforthiscase.
(11)ThedisputeoverliabilityforfreightforwardingcontractsatseaandinseaareasbetweenthesubsidiaryoftheCompany,AnhuiKonkaandShanghaiTriangleLinkLogisticsCo.,Ltd.ShenzhenBranchandShanghaiTriangleLinkLogisticsCo.,Ltd.haveinvolvedinRMB37,966,066.73.InJanuary2020,thecompanyfiledalawsuitwiththecourt,andthecaseiscurrentlybeingheardbytheShanghaiHigherPeople'sCourt.Asofthedateofissuanceofthisreport,noeffectivejudgmenthasbeenissuedforthiscase.
(12)ThedisputeincapitalincreaseamongthesubsidiaryoftheCompany,ShenzhenNianhua,FangXianglongandJiangYanhasinvolvedinRMB20,451,631.52,andShenzhenNianhuahasappliedforpropertypreservationtothecourt.Asofthedateofissuanceofthisreport,thecasehasbeencompleted,andtheShenzhenCourtofInternationalArbitrationhasissuedanaward,whichiscurrentlybeingimplemented.XIII.CommitmentandContingency
1.CapitalCommitments
| Item | Endingbalance | Beginningbalance |
| Commitmentssignedbuthasn’tbeenrecognizedinfinancialstatements | ||
| —Commitmentonconstructionandpurchaseoflong-livedassets | 277,628,800.00 | |
| —Contractwithlargeamount | 4,310,308,187.10 | 3,889,900,964.09 |
| —Foreigninvestmentcommitments | 103,090,000.00 | |
| Total | 4,587,936,987.10 | 3,992,990,964.09 |
2.OperatingLeaseCommitmentsAsofthebalancesheetdate,theirrevocableoperatingleasecommitmentsthattheCompanysignedwereasfollowed:
| Item | Endingbalance | Beginningbalance |
| Minimumleasepaymentsofirrevocableoperatinglease | ||
| 1yearafterbalancedate | 52,265,285.12 | 29,370,366.16 |
| 2yearsafterbalancedate | 36,586,799.43 | 29,016,143.76 |
| 3yearsafterbalancedate | 8,779,702.07 | 17,502,940.47 |
| Followingyears | 26,662,526.63 | 5,349,676.50 |
| Total | 124,294,313.26 | 81,239,126.89 |
3.OtherCommitmentsAsof31December2020,therewerenoothersignificantcommitmentsfortheCompanytodisclose.
XⅣ.EventsafterBalanceSheetDate
1.SignificantNon-adjustedEventsTheimpactoftheimplementationofthenewaccountingstandardsfromJanuary1,2021TheMinistryofFinanceofthePeople’sRepublicofChina(hereinafterreferredtoasthe“MinistryofFinance”)issuedtheNoticeonRevisingandIssuing(CKNo.[2018]35)inDecember2018,whichshallbeimplementedfromJanuary1,2019bycompanieslistedinbothdomesticandoverseasmarketsthatadoptIFRSorASBEtopreparefinancialstatements,whileothercompaniesthatadoptsASBEshallimplementtheNoticefromJanuary1,2021.Mainchangesofnewleasingcriteriainclude:①Underthenewleasingcriteria,exceptforshort-termleasingandlow-valueassetleasing,thelesseeshallnolongerdistinguishseparatefinancialleasingandoperatingleasing,bothofwhichshallfollowthesameaccountingtreatmentandrecognizetheright-of-useassetsandleasingliabilities;②Fortheright-of-useassets,depreciationshallbeaccruedovertheremainingusefullifeoftheleasedassetswhenthelesseecanreasonablydeterminethatownershipoftheleasedassetcanbeacquiredattheexpirationofleaseterm,otherwise,depreciationshallbeaccruedwithintheleasetermorremainingusefullifeoftheleasedasset,whicheverisshorter.Thelesseeshallalsodeterminetheoccurrenceofimpairmentofright-of-useassets,andconductaccountingtreatmentforidentifiedimpairmentloss;③Forleaseliabilities,thelesseeshallcalculateinterestexpenseoftheleaseliabilitiesduringeachperiodoftheleasetermandincludeitintoprofitsandlossesofthecurrentperiod;④Forshort-termleaseandleaseoflow-valueassets,thelesseemaychoosenottorecognizetheright-of-useassetsandleaseliabilities,andincludethemintherelevantassetcostsorcurrentprofitsandlossesaccordingtostraight-linemethodorothersystematicandreasonablemethodsineachperiodoftheleasingterm.Tofollowtheconvergenceprovisionsofnewleasingcriteria,theCompanyadjustedtheretainedearningsatthebeginningofthecurrentyearandamountsofotherrelevantitemsinthefinancialstatementsbasedonthecumulativeimpactofthefirstimplementationofnewleasingcriteria,withoutadjustinginformationofcomparableperiods.Itisexpectedthattheimplementationofnewleasingcriteriawillnotgenerateasignificantimpactonthecurrentorpreviousowner’sequityandnetprofitoftheCompany.
FromJanuary1,2021,KonkaGroupCo.,Ltd.(hereinafterreferredtoasthe"Company")willchangeitsaccountingpoliciesinaccordancewiththe"NoticeonRevisingandIssuingoftheAccountingStandardsforBusinessEnterprisesNo.21-Leases".
2.Nosignificantnon-adjustedevents
3.Profitdistribution
| Item | Content |
| Profitordividenddeclaredtobepaidafterreviewandapproval(pendingapprovalbythegeneralmeetingofshareholders) | Basedonthetotalsharecapitalof2,407,945,408sharesattheendof2020,itisproposedtopayacashdividendof1yuan(includingtax)forevery10sharestoallshareholders,andthedistributeddividendisRMB240,794,540.80.Theremainingundistributedprofitswillbecarriedforwardfordistributioninfutureyears.Nobonusshareswillbesentthistime,andnoaccumulationfundwillbeconvertedintoincreasedsharecapital. |
4.SalesreturnsAfterthebalancesheetdate,nosignificantsalesreturnsoccurred.
5.Exceptfortheabove-mentioneddisclosureofmattersafterthebalancesheetdate,theCompanyhasnoothersignificanteventsafterthebalancesheetdate.
XⅤ.OtherSignificantEventsTheCompanyhasnoothersignificantevents.XVI.NotesofMainItemsintheFinancialStatementsoftheCompanyastheParent
1.AccountsReceivable
（
）ListedbyWithdrawalMethodofExpectedCreditLoss
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Accountsreceivableforwhichexpected | 948,510,887.48 | 18.22 | 552,922,400.60 | 58.29 | 395,588,486.88 |
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| creditlosswithdrawnseparately | |||||
| Accountsreceivableforwhichexpectedcreditlosswithdrawnbygroup | |||||
| Ofwhich:Aginggroup | 574,995,507.05 | 11.05 | 178,675,741.20 | 31.07 | 396,319,765.85 |
| Relatedpartygroup | 3,681,343,439.12 | 70.73 | 3,681,343,439.12 | ||
| Subtotalofgroups | 4,256,338,946.17 | 81.78 | 178,675,741.20 | 4.20 | 4,077,663,204.97 |
| Total | 5,204,849,833.65 | 100.00 | 731,598,141.80 | 14.06 | 4,473,251,691.85 |
(Continued)
| Category | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Accountsreceivableforwhichexpectedcreditlosswithdrawnseparately | 851,581,146.54 | 8.52 | 243,095,956.82 | 28.55 | 608,485,189.72 |
| Accountsreceivableforwhichexpectedcreditlosswithdrawnbygroup | |||||
| Category | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Ofwhich:Aginggroup | 562,863,234.05 | 5.63 | 176,154,824.04 | 31.30 | 386,708,410.01 |
| Relatedpartygroup | 8,585,700,872.27 | 85.86 | 8,585,700,872.27 | ||
| Subtotalofgroups | 9,148,564,106.32 | 91.48 | 176,154,824.04 | 1.93 | 8,972,409,282.28 |
| Total | 10,000,145,252.86 | 100.00 | 419,250,780.86 | 4.19 | 9,580,894,472.00 |
1）WithdrawalofExpectedCreditLossSeparately
| Name | Endingbalance | |||
| Carryingamount | Baddebtprovision | Withdrawalproportion(%) | Reason | |
| CEFC(Shanghai)GroupCo.,Ltd. | 300,018,021.01 | 240,014,416.81 | 80.00 | Debtdefault |
| TewooGroupCo.,Ltd. | 200,000,000.00 | 90,000,000.00 | 45.00 | Judicialreorganization |
| JiangsuHongtuSanbaoHigh-TechTechnologyCo.,Ltd. | 200,000,000.00 | 80,000,000.00 | 40.00 | Agreementreorganization |
| ChinaNuclearEngineeringConstructionGroupCo.,Ltd. | 74,582,619.13 | 22,374,785.74 | 30.00 | Increasedcreditrisk |
| CCCCNo.1Navigation | 55,438,105.00 | 48,915,975.00 | 88.24 | Expectedtobedifficulttorecoverin |
| Name | Endingbalance | |||
| Carryingamount | Baddebtprovision | Withdrawalproportion(%) | Reason | |
| BureauNo.1EngineeringCo.,Ltd | full | |||
| Other | 118,472,142.34 | 71,617,223.05 | 60.45 | |
| Total | 948,510,887.48 | 552,922,400.60 | 58.29 | |
）WithdrawalofExpectedCreditLossbyGroup
1AmongGroups,WithdrawalofExpectedCreditLossbyAging
| Aging | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion(%) | |
| Within1year | 337,825,208.74 | 6,891,634.26 | 2.04 |
| 1to2years | 55,708,526.76 | 5,581,994.38 | 10.02 |
| 2to3years | 18,682,949.00 | 4,239,161.13 | 22.69 |
| 3to4years | 2,323,095.43 | 1,507,224.31 | 64.88 |
| Over4years | 160,455,727.12 | 160,455,727.12 | 100.00 |
| Total | 574,995,507.05 | 178,675,741.20 | 31.07 |
②AmongGroups,WithdrawalofExpectedCreditLossbyAdoptingOtherMethod
| Aging | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion(%) | |
| Relatedpartygroup | 3,681,343,439.12 | ||
| Total | 3,681,343,439.12 | ||
（
）Listedbyaginggroup
| Aging | Endingbalance |
| Within1year | 3,562,326,085.73 |
| Aging | Endingbalance |
| 1to2years | 772,416,357.56 |
| 2to3years | 650,373,734.58 |
| 3to4years | 48,616,790.62 |
| Over4years | 171,116,865.16 |
| Total | 5,204,849,833.65 |
| 731,598,141.80 | |
| 4,473,251,691.85 |
（3）InformationofBadDebtProvisionintheReportingPeriod
| Category | Beginningbalance | Changedamount | Endingbalance | ||
| Withdrawn | Collectedorreversed | Write-offorverified | |||
| AccountsReceivableBadDebtProvision | 419,250,780.86 | 312,347,360.94 | 731,598,141.80 | ||
| Total | 419,250,780.86 | 312,347,360.94 | 731,598,141.80 | ||
（4）ActualVerificationofAccountsReceivableNoactualverifiedaccountsreceivableintheReportingPeriod.
（5）Top5oftheEndingBalanceoftheAccountsReceivableCollectedaccordingto
ArrearsPartyTotalamountofTop5ofendingbalanceofaccountsreceivablecollectedaccordingtoarrearspartywasRMB4,375,127,326.21accountingfor84.06%oftotalendingbalanceofaccountsreceivable.TotalendingbalanceofbaddebtprovisionwithdrawnwasRMB410,014,416.81.
（6）ThereWasNoAccountReceivableTerminatedtheRecognitionowningtothe
TransferoftheFinancialAssets.
（7）ThereWasNoAssetandLiabilityFormedduetotheTransferofAccounts
ReceivableandContinuedInvolvementintheReportingPeriod.
2.OtherReceivables
| Item | Endingbalance | Beginningbalance |
| Interestreceivable | 41,138,869.97 | 7,431,353.86 |
| Dividendsreceivable | 749,431,635.50 | 518,580,871.02 |
| Otherreceivables | 9,244,298,847.60 | 10,026,808,690.59 |
| Total | 10,034,869,353.07 | 10,552,820,915.47 |
2.1Interestreceivable
| Item | Endingbalance | Beginningbalance |
| Termdeposits | 6,830,211.26 | 4,807,630.04 |
| loanbymandate | 34,303,196.21 | 2,623,723.82 |
| Entrustmentloans | 5,462.50 | |
| Total | 41,138,869.97 | 7,431,353.86 |
2.2Dividendsreceivable
| Investee | Endingbalance | Beginningbalance |
| HongKongKonkaLimited | 250,808,720.00 | 214,987,200.00 |
| KonkaFactoring(Shenzhen)Co.,Ltd. | 70,000,000.00 | |
| SuiningKonkaIndustrialParkDevelopmentCo.,Ltd. | 280,000,000.00 | |
| DongguanKonkaElectronicCo.,Ltd. | 218,622,915.50 | 233,593,671.02 |
| Total | 749,431,635.50 | 518,580,871.02 |
2.3Otherreceivables
（
）ClassifiedbyAccountNature
| Nature | Endingcarryingamount | Beginningcarryingamount |
| Depositandmargin | 9,180,409.27 | 383,449,285.99 |
| Intercoursefundsamongsubsidiaries | 9,378,801,127.33 | 9,453,745,035.03 |
| Intercoursefundswithotherrelatedparties | 118,043,953.69 | 182,971,639.02 |
| Energy-savingsubsidyreceivable | 141,549,150.00 | 141,539,850.00 |
| Other | 89,315,201.21 | 52,265,159.90 |
| Total | 9,736,889,841.50 | 10,213,970,969.94 |
（2）WithdrawalofBadDebtProvision
| Baddebtprovision | PhaseI | PhaseII | PhaseIII | Total |
| Expectedcreditlossesoverthenext12months | Expectedcreditlossesfortheentireduration(nocreditimpairment) | Expectedcreditlossesfortheentireduration(withcreditimpairment) | ||
| Balanceon1January2020 | 7,296,330.73 | 17,404,579.39 | 162,461,369.23 | 187,162,279.35 |
| IntheReportingPeriod,Carryingamountofotherreceivableson1January2020: | ||||
| ——TransferredtothePhaseII | -157,153.93 | 157,153.93 | ||
| ——TransferredtothePhaseIII | -410.58 | -18,204.86 | 18,615.44 | |
| ——TransferredbacktothePhaseII | ||||
| ——TransferredbacktothePhaseI | ||||
| Withdrawal | -5,237,575.75 | 738,679.09 | 323,477,996.93 | 318,979,100.27 |
| Recovery | ||||
| Write-off | ||||
| Verification | 153,528.90 | 13,396,856.82 | 13,550,385.72 | |
| Otherchanges | ||||
| Balanceon31December2020 | 1,901,190.46 | 18,128,678.66 | 472,561,124.78 | 492,590,993.90 |
Note:Thefirststageisthatcreditriskhasnotincreasedsignificantlysinceinitialrecognition.Forotherreceivableswithanagingportfolioandalow-riskportfoliowithin1year,thelossprovisionismeasuredaccordingtotheexpectedcreditlossesinthenext12months.Thesecondstageisthatcreditriskhasincreasedsignificantlysinceinitialrecognitionbutcreditimpairmenthasnotyetoccurred.Forotherreceivableswithanagingportfolioandalow-riskportfoliothatexceed1year,thelossprovisionismeasuredbasedontheexpectedcreditlossesfortheentireduration.
Thethirdstageisthecreditimpairmentafterinitialconfirmation.Forotherreceivablesofcreditimpairmentthathaveoccurred,thelossprovisionismeasuredaccordingtothecreditlossesthathaveoccurredthroughouttheduration.
（3）Withdrawingbaddebtprovisionforotherreceivablesaccordingtogroup
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion | Amount | Withdrawalproportion | ||
| Otherreceivableswithsignificantindividualamountandmakeindependentprovisionforexpectedcreditloss | 1,764,691,060.74 | 18.00 | 472,561,124.78 | 26.78 | 1,292,129,935.96 |
| Otherreceivableswithdrawnbaddebtprovisionaccordingto | |||||
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion | Amount | Withdrawalproportion | ||
| creditriskscharacteristics | |||||
| Aginggroup | 128,885,012.86 | 1.00 | 15,447,446.31 | 11.99 | 113,437,566.55 |
| Low-riskgroup | 17,273,953.16 | 4,582,422.81 | 26.53 | 12,691,530.35 | |
| Relatedpartygroup | 7,826,039,814.74 | 80.00 | 7,826,039,814.74 | ||
| Subtotalofgroups | 7,972,198,780.76 | 82.00 | 20,029,869.12 | 0.25 | 7,952,168,911.64 |
| Total | 9,736,889,841.50 | 100.00 | 492,590,993.90 | 5.06 | 9,244,298,847.60 |
(Continued)
| Category | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion | Amount | Withdrawalproportion | ||
| Otherreceivableswithsignificantindividualamountandmakeindependentprovisionforexpectedcredit | 173,092,959.33 | 1.69 | 162,461,369.23 | 93.86 | 10,631,590.10 |
| loss | |||||
| Otherreceivableswithdrawnbaddebtprovisionaccordingtocreditriskscharacteristics | |||||
| Aginggroup | 196,772,672.55 | 1.93 | 16,787,423.23 | 8.53 | 179,985,249.32 |
| Low-riskgroup | 390,582,659.31 | 3.82 | 7,913,486.89 | 2.03 | 382,669,172.42 |
| Relatedpartygroup | 9,453,522,678.75 | 92.55 | 9,453,522,678.75 | ||
| Subtotalofgroups | 10,040,878,010.61 | 98.30 | 24,700,910.12 | 0.25 | 10,016,177,100.49 |
| Total | 10,213,970,969.94 | 100.00 | 187,162,279.35 | 1.83 | 10,026,808,690.59 |
（4）Listedbyaging
| Aging | Endingbalance |
| Within1year | 6,174,537,325.77 |
| 1to2years | 2,915,238,116.54 |
| 2to3years | 243,665,416.10 |
| 3to4years | 96,722,054.13 |
| 4to5years | 49,208,593.53 |
| Over5years | 257,518,335.43 |
| Subtotal | 9,736,889,841.50 |
| Less:baddebtprovision | 492,590,993.90 |
| Total | 9,244,298,847.60 |
（
）BadDebtProvisionforOtherReceivables
TheamountofbaddebtprovisionforthisyearwasRMB318,979,100.27,andotherreceivablesactuallywrittenoffinthisperiodwereRMB13,550,385.72.
（6）Otherreceivableswithtopfiveendingbalancescollectedbydebtors.
Inthisyear,thetotalamountofthetopfiveotherreceivablescollectedbydebtorsattheendoftheyearwasRMB7,395,358,555.11,accountingfor75.95%ofthetotalamountofotherreceivablesattheendoftheyear,andthetotalamountofthecorrespondingaccruedbaddebtreservesattheendoftheyearwasRMB315,005,562.96.
（7）ThereWasNoOtherReceivablesTerminatedtheRecognitionowningtotheTransferoftheFinancialAssets.
（8）ThereWasNoAssetandLiabilityFormedbytheTransferandtheContinuesInvolvementofOtherReceivables.
3.Long-termEquityInvestment
（1）CategoryofLong-termEquityInvestment
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserve | Carryingvalue | Carryingamount | Depreciationreserve | Carryingvalue | |
| Investmenttosubsidiaries | 7,083,817,068.77 | 102,532,484.69 | 6,981,284,584.08 | 5,983,370,982.51 | 10,732,484.69 | 5,972,638,497.82 |
| Investmenttoassociatesandjointventures | 1,851,048,093.64 | 26,166,078.16 | 1,824,882,015.48 | 1,752,296,635.13 | 12,850,165.07 | 1,739,446,470.06 |
| Total | 8,934,865,162.41 | 128,698,562.85 | 8,806,166,599.56 | 7,735,667,617.64 | 23,582,649.76 | 7,712,084,967.88 |
（
）InvestmenttoSubsidiaries
| Investee | Beginningbalance | Increase | Decrease | Endingbalance | Provisionforimpairmentthisyear | Endingbalanceofdepreciationreserve |
| KonkaVentures | 2,550,000.00 | 2,550,000.00 | ||||
| AnhuiKonka | 122,780,937.98 | 122,780,937.98 | ||||
| KonkaFactoring | 300,000,000.00 | 300,000,000.00 |
| Investee | Beginningbalance | Increase | Decrease | Endingbalance | Provisionforimpairmentthisyear | Endingbalanceofdepreciationreserve |
| KonkaUnifortune | 15,300,000.00 | 15,300,000.00 | ||||
| Wankaida | 10,000,000.00 | 10,000,000.00 | ||||
| DongguanKonka | 274,783,988.91 | 274,783,988.91 | ||||
| LifeElectricAppliance | 31,500,000.00 | 31,500,000.00 | ||||
| KonkaEurope | 3,637,470.00 | 3,637,470.00 | ||||
| CommercialSystemTechnology | 5,832,000.00 | 5,832,000.00 | ||||
| KonkaElectricalAppliances | 1.00 | 1.00 | 10,732,484.69 | |||
| TelecommunicationTechnology | 360,000,000.00 | 360,000,000.00 | ||||
| MobileInterconnection | 20,000,000.00 | 80,000,000.00 | 100,000,000.00 | |||
| AnhuiTongchuang | 481,702,612.22 | 298,000,000.00 | 779,702,612.22 | |||
| Kangjiatong | 15,300,000.00 | 15,300,000.00 | ||||
| KonkaPengrun | 25,500,000.00 | 25,500,000.00 |
| Investee | Beginningbalance | Increase | Decrease | Endingbalance | Provisionforimpairmentthisyear | Endingbalanceofdepreciationreserve |
| E3info | 12,000,000.00 | 12,000,000.00 | ||||
| DongguanPacking | 8,602,009.10 | 8,602,009.10 | ||||
| E2info | 19,322,040.00 | 19,322,040.00 | ||||
| BeijingKonkaElectronic | 200,000,000.00 | 200,000,000.00 | ||||
| KonkaCircuit | 48,750,000.00 | 42,250,000.00 | 91,000,000.00 | |||
| HongKongKonka | 781,828.61 | 781,828.61 | ||||
| KonkaInvestment | 477,000,000.00 | 23,000,000.00 | 500,000,000.00 | |||
| ElectronicsTechnology | 1,000,000,000.00 | 1,000,000,000.00 | ||||
| YantaiLaikang | ||||||
| EconTechnology | 688,500,000.00 | 688,500,000.00 | ||||
| KonkaHuanjia | 91,800,000.00 | 91,800,000.00 | 91,800,000.00 | 91,800,000.00 | ||
| ShanghaiKonka | 40,000,000.00 | 40,000,000.00 | ||||
| JiangxiKonka | 689,680,000.00 | 689,680,000.00 | ||||
| ShenzhenNianhua | 30,000,000.00 | 30,000,000.00 |
| Investee | Beginningbalance | Increase | Decrease | Endingbalance | Provisionforimpairmentthisyear | Endingbalanceofdepreciationreserve |
| ShenzhenKONSEMI | 100,000,000.00 | 100,000,000.00 | ||||
| KonkaEco-Development | 50,000.00 | 50,000.00 | ||||
| SuiningKonka | 200,000,000.00 | 200,000,000.00 | ||||
| KonkaRonghe | 5,100,000.00 | 5,100,000.00 | ||||
| SuiningElectronicTechnologicalInnovation | 200,000,000.00 | 200,000,000.00 | ||||
| DongguanKonkaInvestment | 44,400,000.00 | 55,600,000.00 | 100,000,000.00 | |||
| ShenzhenChuangzhiElectricalAppliances | 10,000,000.00 | 10,000,000.00 | ||||
| Kanghong(Yantai)EnvironmentalProtection | 5,100.00 | 1,020,000.00 | 1,025,100.00 |
| Investee | Beginningbalance | Increase | Decrease | Endingbalance | Provisionforimpairmentthisyear | Endingbalanceofdepreciationreserve |
| ChongqingKangxingrui | 25,500,000.00 | 25,500,000.00 | ||||
| ChongqingOptoelectronicInstitute | 350,000,000.00 | 650,000,000.00 | 66,666,666.67 | 933,333,333.33 | ||
| XinyingSemiconductor | 14,000,000.00 | 42,000,000.00 | 56,000,000.00 | |||
| Jiangkang(Shanghai)Technology | ||||||
| ChongqingRealEstateDevelopment | 25,500,000.00 | 25,500,000.00 | ||||
| NingboKanghanruiElectricalAppliances | 9,000,000.00 | 81,000,000.00 | 90,000,000.00 | |||
| KonkaZhizao | 510.00 | 510.00 | ||||
| DebaoNewMaterial | 3,750,000.00 | 3,750,000.00 |
| Investee | Beginningbalance | Increase | Decrease | Endingbalance | Provisionforimpairmentthisyear | Endingbalanceofdepreciationreserve |
| Technology | ||||||
| SuiningJiarunRealEstate | 10,000,000.00 | 10,000,000.00 | ||||
| ChuzhouKangxinHealthIndustry | 30,000,000.00 | 30,000,000.00 | ||||
| KangxinglongEnvironmentalProtection | 10,000.00 | 10,000.00 | ||||
| YantaiKangyun | 1,530,000.00 | 1,530,000.00 | ||||
| ChongqingKanglei | ||||||
| ChongqingKanglei | 67,000,000.00 | 67,000,000.00 | ||||
| HenanKangxinRealEstate | ||||||
| ChongqingChengda | 25,500,000.00 | 25,500,000.00 | ||||
| KonkaMaterial | 4,304,752.93 | 4,304,752.93 | ||||
| Total | 5,972,638,497.82 | 1,401,204,752.93 | 300,758,666.67 | 7,073,084,584.08 | 91,800,000.00 | 102,532,484.69 |
（
）InvestmenttoJointVenturesandAssociatedEnterprises
| Investee | Balanceattheendoflastyearatthebeginningoftheyear | Increase-decrease | |||
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | ||
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | 23,529,741.15 | -6,129,002.71 | |||
| WanjunTechnology(Kunshan)Co.,Ltd. | 128,896,753.19 | -7,317,169.02 | |||
| KunshanKangsheng | 175,254,554.65 | ||||
| ChutianDragonCo.,Ltd. | 636,061,636.70 | 23,385,170.32 | |||
| HelongjiangLongkangZhijiaTechnologyCo.,Ltd. | 2,380,000.00 | -1,279,157.71 | |||
| KonkaGreen,KonkaTechnology | 77,342,419.36 | -2,081,114.80 | |||
| ShaanxiSilkRoadCloudIntelligentTechCo.,Ltd. | 17,202,315.43 | 446,980.38 | |||
| ShenzhenKonkaInformationNetworkCo.,Ltd. | |||||
| ShenzhenZhongbinKonka | 7,273,228.41 | -5,058,921.08 | |||
| Investee | Balanceattheendoflastyearatthebeginningoftheyear | Increase-decrease | |||
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | ||
| TechnologyCo.,Ltd. | |||||
| ShenzhenKonkaIntelligentElectricalApparatusCo.,Ltd. | 2,882,149.72 | 930,984.56 | |||
| ZhuhaiJinsuPlasticCo.,Ltd. | 10,166,404.14 | 10,549,865.19 | 383,461.05 | ||
| ShenzhenBosserNewMaterialsCo.,Ltd. | 73,600,000.00 | -1,884,086.91 | |||
| ShenzhenYaodeTechnologyCo.,Ltd. | 229,740,245.47 | -10,611,583.85 | |||
| WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | 275,577,332.21 | 29,076,911.48 | |||
| KonkaE-display | 14,399,858.75 | -2,625,717.49 | |||
| ChuzhouKonkaTechnologyIndustryDevelopmentCo.,Ltd. | 17,270,427.37 | -11,371,102.98 | |||
| ChuzhouKangjinHealthIndustrialDevelopmentCo.,Ltd. | 14,588,741.64 | 662,742.37 | |||
| HaimenKangjianTechnology | 29,589,201.10 | -10,544,214.33 | |||
| Investee | Balanceattheendoflastyearatthebeginningoftheyear | Increase-decrease | |||
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | ||
| IndustrialParkOperationsandManagementCo.,Ltd. | |||||
| ShenzhenKangyueEnterpriseCo.,Ltd. | 3,691,460.77 | -343,163.72 | |||
| DongguanKonkaInvestmentCo.,Ltd. | 49,004,878.51 | -6,846,600.88 | |||
| ChongqingKonkaRealEstateDevelopmentCo.,Ltd. | 15,780,864.75 | -2,438.71 | |||
| ChongqingChengdaRealEstateCo.,Ltd. | 16,500,000.00 | -2,815,247.76 | |||
| ChuzhouKangxinHealthIndustryDevelopmentCo.,Ltd. | 14,700,000.00 | 4,242.50 | |||
| E3info(Hainan)TechnologyCo.,Ltd. | 28,256,240.41 | 8,318,369.32 | |||
| NanjingKangxingScienceandTechnologyIndustrialParkOperationManagementCo.,Ltd. | 23,462,938.10 | 23,462,938.10 | |||
| Investee | Balanceattheendoflastyearatthebeginningoftheyear | Increase-decrease | |||
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | ||
| Total | 1,739,446,470.06 | 147,704,921.77 | 34,012,803.29 | -5,700,659.97 | |
(Continued)
| Investee | Increase/decrease | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserve | |||
| Otherequitychanges | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Other | |||
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | 17,400,738.44 | |||||
| WanjunTechnology(Kunshan)Co.,Ltd. | 121,579,584.17 | |||||
| KunshanKangsheng | 175,254,554.65 | |||||
| ChutianDragonCo.,Ltd. | 9,240,000.00 | 650,206,807.02 | ||||
| HelongjiangLongkangZhijiaTechnologyCo.,Ltd. | 1,100,842.29 | 2,470,398.03 | ||||
| Investee | Increase/decrease | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserve | |||
| Otherequitychanges | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Other | |||
| ShanghaiKonkaTechnologyCo.,Ltd. | 75,261,304.56 | |||||
| ShaanxiSilkRoadCloudIntelligentTechCo.,Ltd. | 17,649,295.81 | |||||
| ShenzhenKonkaInformationNetworkCo.,Ltd. | 5,158,909.06 | |||||
| ShenzhenZhongbinKonkaTechnologyCo.,Ltd. | 2,214,307.33 | |||||
| ShenzhenKonkaIntelligentElectricalApparatusCo.,Ltd. | 3,813,134.28 | |||||
| ZhuhaiJinsuPlasticCo.,Ltd. | ||||||
| ShenzhenBosserNewMaterialsCo.,Ltd. | 13,315,913.09 | 58,400,000.00 | 18,536,771.07 | |||
| ShenzhenYaodeTechnologyCo.,Ltd. | 219,128,661.62 | |||||
| WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | 304,654,243.69 | |||||
| Investee | Increase/decrease | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserve | |||
| Otherequitychanges | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Other | |||
| KonkaE-display | 11,774,141.26 | |||||
| ChuzhouKonkaTechnologyIndustryDevelopmentCo.,Ltd. | 5,899,324.39 | |||||
| ChuzhouKangjinHealthIndustrialDevelopmentCo.,Ltd. | 15,251,484.01 | |||||
| HaimenKangjianTechnologyIndustrialParkOperationsandManagementCo.,Ltd. | 19,044,986.77 | |||||
| ShenzhenKangyueEnterpriseCo.,Ltd. | 3,348,297.05 | |||||
| DongguanKonkaInvestmentCo.,Ltd. | 42,158,277.63 | |||||
| ChongqingKonkaRealEstateDevelopmentCo.,Ltd. | 15,778,426.04 | |||||
| ChongqingChengdaRealEstateCo.,Ltd. | 13,684,752.24 | |||||
| Investee | Increase/decrease | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserve | |||
| Otherequitychanges | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Other | |||
| ChuzhouKangxinHealthIndustryDevelopmentCo.,Ltd. | 14,704,242.50 | |||||
| E3info(Hainan)TechnologyCo.,Ltd. | 36,574,609.73 | |||||
| NanjingKangxingScienceandTechnologyIndustrialParkOperationManagementCo.,Ltd. | ||||||
| Total | 9,240,000.00 | 13,315,913.09 | 1,824,882,015.48 | 26,166,078.16 | ||
NotestotheFinancialStatementsofKonkaGroupCo.,Ltd.January1,2020toDecember31,2020(Unlessotherwisespecified,thenotestothisfinancialstatementarealllistedinRMB)
4.OperatingRevenueandCostofSales
(1)Operatingrevenueandoperatingcosts
| Item | ReportingPeriod | SamePeriodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Mainoperations | 3,076,325,721.91 | 2,769,474,547.43 | 5,036,032,864.08 | 4,960,650,274.98 |
| Otheroperations | 638,561,930.58 | 506,745,792.19 | 650,069,282.90 | 452,981,509.79 |
| Total | 3,714,887,652.49 | 3,276,220,339.62 | 5,686,102,146.98 | 5,413,631,784.77 |
(2)Informationrelatingtothetransactionpriceallocatedtotheremainingperformanceobligation
Attheendofthisyear,theamountofincomecorrespondingtotheperformanceobligationsthathavebeensignedbutnotyetfulfilledornotfulfilledis12,142,638.84yuan,ofwhich12,142,638.84yuanisexpectedtoberecognizedin2021.
5.InvestmentIncome
| Item | ReportingPeriod | SamePeriodoflastyear |
| Long-termequityinvestmentincomeaccountedbycostmethod | 585,217,964.13 | 537,735,966.91 |
| Long-termequityinvestmentincomeaccountedbyequitymethod | -5,700,659.97 | 5,132,712.27 |
| Investmentincomefromdisposaloflong-termequityinvestment | 1,215,083,684.94 | 393,939,191.83 |
| Investmentincomefromholdingoftradingfinancialassets | 4,800,000.00 | 2,330,000.00 |
| Investmentincomefromdisposaloftrading | 3,405,333.03 | -10,285,883.02 |
NotestotheFinancialStatementsofKonkaGroupCo.,Ltd.January1,2020toDecember31,2020(Unlessotherwisespecified,thenotestothisfinancialstatementarealllistedinRMB)
| Item | ReportingPeriod | SamePeriodoflastyear |
| financialassets | ||
| Incomefromentrustfinancialproductsandentrustloans | 19,038,445.39 | 70,346,322.45 |
| Total | 1,821,844,767.52 | 999,198,310.44 |
XVII.ApprovalofFinancialStatements
Thefinancialstatementwasapprovedon22March2021bytheBoardofDirectors.
NotestotheFinancialStatementsofKonkaGroupCo.,Ltd.
FortheYearfrom1January2020to31December2020(allamountsinRMByuanunlessotherwisestated)
XVIII.SupplementaryMaterials
1.ItemsandAmountsofNon-recurringProfitorLoss
| Item | Amount | Note |
| Gain-Lossarisingfromdisposalofnon-currentassets | 2,431,648,255.26 | |
| Taxrebates,reductionsorexemptionsduetoapprovalbeyondauthorityorthelackofofficialapprovaldocuments | ||
| Governmentsubsidiesrecognizedinthecurrentperiod,exceptforthoseacquiredintheordinarycourseofbusinessorgrantedatcertainquotasoramountsaccordingtothegovernment’sunifiedstandards | 908,546,202.24 | |
| Capitaloccupationchargesonnon-financialenterprisesthatarerecordedintocurrentprofitorloss | ||
| GainsduetothattheinvestmentcostsfortheCompanytoobtainsubsidiaries,associatesandjointventuresarelowerthantheenjoyablefairvalueoftheidentifiablenetassetsoftheinvesteeswhenmakingtheinvestments | ||
| Gain/Lossonnon-monetaryassetswap | ||
| Gain/Lossonentrustingotherswithinvestmentsorassetmanagement | 18,476,648.12 | |
| AssetimpairmentprovisionsduetoactsofGodsuchasnaturaldisasters | ||
| Gain/Lossfromdebtrestructuring | 1,127,066.94 | |
| Expensesonbusinessreorganization,suchasexpensesonstaffarrangements,integration,etc. | ||
| Gain/Lossonthepartoverthefairvalueduetotransactionswithdistinctlyunfairprices | ||
| Currentnetprofitorlossofsubsidiariesacquiredinbusinesscombinationunderthesamecontrolfrom |
| Item | Amount | Note |
| period-beginningtocombinationdate | ||
| Gain/LossincurredfromcontingencyunrelatedtotheCompany’snormaloperatingbusinesses. | ||
| Gain/lossfromchangeoffairvalueoftradingfinancialassetsandliabilities,andderivativefinancialassetsandliabilities,andinvestmentgainsfromdisposaloftradingfinancialassetsandliabilities,andderivativefinancialassetsandliabilities,andinvestmentinotherobligatoryrights,otherthanvalidhedgingrelatedtotheCompany’scommonbusinesses | 96,316,772.78 | |
| Reverseofbaddebtprovisionofaccountsreceivableindividuallyconductingimpairmenttest | ||
| Gain/lossonentrustmentloans | 64,616,181.90 | |
| Gain/lossonchangeinfairvalueofinvestmentpropertyofwhichthesubsequentmeasurementiscarriedoutadoptingfairvaluemethod | ||
| Effectoncurrentprofitorlosswhenaone-offadjustmentismadetocurrentprofitorlossaccordingtorequirementsoftaxation,accountingandotherrelevantlawsandregulations | ||
| Custodyfeeincomewhenentrustedwithoperation | ||
| Othernon-operatingincomeandexpenseotherthantheabove | 54,271,037.60 | |
| Projectconfirmedwiththedefinitionofnon-recurringgainsandlosses | 1,081,111.64 | |
| Subtotal | 3,576,083,276.48 | |
| Less:Incometaxeffects | 544,211,364.67 | |
| Non-controllinginterestseffects(aftertax) | 186,647,854.72 | |
| Total | 2,845,224,057.09 | — |
（
）TheexplanationoftheCompanyto“Projectconfirmedwiththedefinitionofnon-recurringgainsandlosses”anddefinenon-recurringgainsandlossesasrecurringgainsandlossesaccordingtothenatureandfeaturesofnormalbusinessoperationsofcompany.
| Item | Amount | Reason |
| Softwaretaxrefund | 30,710,313.50 | Governmentsubsidieswhicharecloselyrelatedtothenormalbusinessofthecompanyandwhichareinaccordancewithnationalpoliciesandcertainstandardquotaorquantitativeamount |
| Total | 30,710,313.50 |
2.ReturnonEquityandEarningsPerShare
| ProfitasofReportingPeriod | WeightedaverageROE(%) | EPS(Yuan/share) | |
| EPS-basic | EPS-diluted | ||
| NetprofitattributabletoordinaryshareholdersoftheCompany | 5.79 | 0.1984 | 0.1984 |
| NetprofitattributabletoordinaryshareholdersoftheCompanyafterdeductionofnon-recurringprofitorloss | -28.72 | -0.9832 | -0.9832 |
KonkaGroupCo.,Ltd.AnnualReport2020
PartXIIIDocumentsAvailableforReference
I.ThefinancialstatementswiththesignaturesandsealsoftheCompany’slegalrepresentative,ChiefFinancialOfficerandheadofthefinancialdepartment;II.TheoriginalcopyoftheIndependentAuditor’sReportwiththesealoftheCPAfirmandthesignatures&sealsofthecertifiedpublicaccountants;III.TheoriginalsofalltheCompany’sdocumentsandannouncementsdisclosedtothepublicvianewspapersdesignatedbytheCSRCintheReportingPeriod;andIV.Otherrelevantmaterials.
TheBoardofDirectorsKonkaGroupCo.,Ltd.
23March2021