KONKAGROUPCO.,LTD.
ANNUALREPORT2018
2019-22
March2019
PartIImportantNotes,TableofContentsandDefinitions
TheBoardofDirectors(orthe“Board”),theSupervisoryCommitteeaswellasthedirectors,supervisorsandseniormanagementofKonkaGroupCo.,Ltd.(hereinafterreferredtoasthe“Company”)herebyguaranteethefactuality,accuracyandcompletenessofthecontentsofthisReportanditssummary,andshallbejointlyandseverallyliableforanymisrepresentations,misleadingstatementsormaterialomissionstherein.LiuFengxi,theCompany’slegalrepresentative,LiChunlei,theCompany’sChiefFinancialOfficer(CFO),andFengJunxiu,headoftheCompany’sfinancialdepartment(equivalenttofinancialmanager)herebyguaranteethattheFinancialStatementscarriedinthisReportarefactual,accurateandcomplete.AlltheCompany’sdirectorshaveattendedtheBoardmeetingforthereviewofthisReportanditssummary.Anyplansforthefutureorotherforward-lookingstatementsmentionedinthisReportanditssummaryshallNOTbeconsideredasabsolutepromisesoftheCompanytoinvestors.Therefore,investorsareremindedtoexercisecautionwhenmakinginvestmentdecisions.TheBoardhasapprovedafinaldividendplanasfollows:basedonthe2,407,945,408shares,acashdividendofRMB1.00(taxinclusive)per10sharesistobedistributedtotheshareholders,withnobonusissuefromeitherprofitorcapitalreserves.ThisReportanditssummaryhavebeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionsshallprevail.
TableofContents
PartIImportantNotes,TableofContentsandDefinitions ...... 2
PartIICorporateInformationandKeyFinancialInformation ...... 7
PartIIIBusinessSummary ...... 12
PartIVOperatingPerformanceDiscussionandAnalysis ...... 15
PartVSignificantEvents ...... 45
PartVIShareChangesandShareholderInformation ...... 75
PartVIIPreferredShares ...... 83
PartVIIIDirectors,Supervisors,SeniorManagementandStaff ...... 84
PartIXCorporateGovernance ...... 96
PartXCorporateBonds ...... 108
PartXIFinancialStatements ...... 112
PartXIIDocumentsAvailableforReference ...... 390
Definitions
Term
| Term | Definition |
| The“Company”,the“Group”,“KonkaGroup”or“we” | KonkaGroupCo.,Ltd.anditsconsolidatedsubsidiaries,exceptwherethecontextotherwiserequires |
| KonkaE-display | ShenzhenKonkaE-displayCo.,Ltd. |
| E-displayService | ShenzhenE-displayServiceCo.,Ltd. |
| KangqiaoEasyChain | ShenzhenKangqiaoEasyChainTechnologyCo.,Ltd. |
| KonkaVentures | KonkaVenturesDevelopment(Shenzhen)Co.,Ltd. |
| YantaiKonka | YantaiKonkaHealthcareEnterpriseServiceCo.,Ltd. |
| ChengduKonkaIncubator | ChengduKonkaIncubatorManagementCo.,Ltd. |
| ChengduAnren | ChengduAnrenKonkaCulturalandCreativeIncubatorManagementCo.,Ltd. |
| KonkaEnterpriseService | GuiyangKonkaEnterpriseServiceCo.,Ltd. |
| ChuanghuiSmart | NanjingChuanghuiSmartTechnologyCo.,Ltd. |
| KonkaEnterpriseManagement | GuizhouKonkaEnterpriseManagementServiceCo.,Ltd. |
| YibinKonkaIncubator | YibinKonkaIncubatorManagementCo.,Ltd. |
| Cross-BorderTechnologicalInnovation | ShenzhenKonkaCross-BorderTechnologicalInnovationServiceCo.,Ltd. |
| AnhuiKonka | AnhuiKonkaElectronicCo.,Ltd. |
| KangzhiTrade | AnhuiKangzhiTradeCo.,Ltd. |
| KonkaFactoring | KonkaFactoring(Shenzhen)Co.,Ltd. |
| YoushiKangrong | YoushiKangrongCultureCommunicationCo.,Ltd. |
| ChuzhouKonkaTID | ChuzhouKonkaTechnology&IndustryDevelopmentCo.,Ltd. |
| KonkaUnifortune | ShenzhenKonkaUnifortuneSupplyChainManagementCo.,Ltd. |
| JialiInternational | JialiInternational(HongKong)Limited |
| Wankaida | ShenzhenWankaidaScienceandTechnologyCo.,Ltd. |
| DongguanKonka | DongguanKonkaElectronicCo.,Ltd. |
| TelecommunicationTechnology | ShenzhenKonkaTelecommunicationsTechnologyCo.,Ltd. |
| KonkaElectricalAppliances | ShenzhenKonkaElectricalAppliancesCo.,Ltd. |
| MudanjiangAppliances | MudanjiangArcticOceanAppliancesCo.,Ltd. |
| KonkaEurope | Konka(Europe)Co.,Ltd. |
| CommercialSystemTechnology | ShenzhenKonkaCommercialSystemTechnologyCo.,Ltd. |
| KonkaElectricalAppliances | ShenzhenKonkaElectricalAppliancesCo.,Ltd. |
KonkaMaterial
| KonkaMaterial | HainanKonkaMaterialTechnologyCo.,Ltd. |
| ShushidaLogistics | ShenzhenShushidaLogisticsServiceCo.,Ltd. |
| MobileInterconnection | ShenzhenKonkaMobileInterconnectionTechnologyCo.,Ltd. |
| SichuanKonka | SichuanKonkaSmartterminalTechnologyCo.,Ltd |
| AnhuiTongchuang | AnhuiKonkaTongchuangElectricalAppliancesCo.,Ltd. |
| AnhuiElectricalAppliance | AnhuiKonkaElectricalApplianceTechnologyCo.,Ltd. |
| FrestecRefrigeration | HenanFrestecRefrigerationApplianceCo.,Ltd. |
| FrestecElectricalAppliances | HenanFrestecElectricalAppliancesCo.,Ltd. |
| FrestecHouseholdAppliances | HenanFrestecHouseholdAppliancesCo.,Ltd. |
| KonkaPengrun | ShenzhenKonkaPengrunTechnology&IndustryCo.,Ltd. |
| JiaxinTechnology | JiaxinTechnologyCo.,Ltd. |
| E3info | E3info(Hainan)TechnologyCo.,Ltd. |
| YifangTechnology | ShenzhenKonkaYifangTechnologyCo.,Ltd. |
| DongguanPacking | DongguanKonkaPackingMaterialsCo.,Ltd. |
| E2info | ShenzhenE2infoNetworkTechnologyCo.,Ltd. |
| BeijingKonkaElectronic | BeijingKonkaElectronicCo.,Ltd. |
| KonkaLeasing | TianjinKonkaLeasingCo.,Ltd. |
| FittingsTechnology | ShenzhenKonkaElectronicFittingsTechnologyCo.,Ltd. |
| BoluoKonkaPrecision | BoluoKonkaPrecisionTechnologyCo.,Ltd. |
| XiamenDalong | XiamenDalongTradingCo.,Ltd. |
| BoluoKonka | BoluoKonkaPCBCo.,Ltd. |
| ChongqingQingjia | ChongqingQingjiaElectronicsCo.,Ltd. |
| KunshanKangsheng | KunshanKangshengInvestmentDevelopmentCo.,Ltd. |
| KaikaiShijie | AnhuiKaikaiShijieE-commerceCo.,Ltd. |
| HongKongKonka | HongKongKonkaCo.,Ltd. |
| KonkaElectricalAppliancesInvestment | KonkaElectricalAppliancesInvestment&DevelopmentCo.,Ltd. |
| ChainKingdom | ChainKingdomCo.,Limited |
| ChainKingdom(Shenzhen) | ChainKingdom(Shenzhen)Co.,Limited |
| PlasticProducts | ShenzhenKonkaPlasticProductsCo.,Ltd. |
| KonkaSmartTech | KonkaSmartTechLimited |
| Kangjietong | Kangjietong(HongKong)Limited |
| KonkaElectricalAppliancesInternationalTrading | KonkaElectricalAppliancesInternationalTradingCo.,Ltd. |
| KonkaInvestment | ShenzhenKonkaInvestmentHoldingCo.,Ltd. |
| YibinKonkaTechnologyPark | YibinKonkaTechnologyParkOperationCo.,Ltd. |
| IndustrialNewTown | SichuanKonkaIndustrialNewTownDevelopmentCo.,Ltd. |
| KonkaCapital | ShenzhenKonkaCapitalEquityInvestmentManagementCo.,Ltd. |
KonkaSuiyong
| KonkaSuiyong | KonkaSuiyongInvestment(Shenzhen)Co.,Ltd. |
| HainanTechnology | HainanKonkaTechnologyIndustryDevelopmentCo.,Ltd. |
| KangquanEnterprise | ShenzhenKangquanEnterpriseManagementConsultingCo.,Ltd. |
| ElectronicsTechnology | ShenzhenKonkaElectronicsTechnologyCo.,Ltd. |
| XingDaHongYe | GuangDongXingDaHongYeElectronicCo.,Ltd. |
| ShanghaiXinfeng | ShanghaiXinfengZhuoqunPCBCo.,Ltd. |
| ZhongshanZewei | ZhongshanZeweiKechuangInvestmentManagementCo.,Ltd. |
| NanjingKonka | NanjingKonkaSmartTechnologyCo.,Ltd. |
| AnhuiZhilian | AnhuiKonkaZhilianE-CommerceCo.,Ltd. |
| KonkaHuanjia | KonkaHuanjia(Dalian)EnvironmentalTechnologyCo.,Ltd. |
| ShanghaiKonka | ShanghaiKonkaIndustrialCo.,Ltd. |
| ChuzhouKangyong | ChuzhouKangyongHealthIndustryDevelopmentCo.,Ltd. |
| YantaiKonkaIndustrial | YantaiKonkaIndustrialCo.,Ltd. |
| YantaiKangjin | YantaiKangjinTechnologyDevelopmentCo.,Ltd. |
| ShandongKangxin | ShandongKangxinIndustrialDevelopmentCo.,Ltd. |
| EconTechnology | ShandongEconTechnologyCo.,Ltd.(inclusiveofitsconsolidatedsubsidiaries) |
| JiangxiKonka | JiangxiKonkaNewMaterialTechnologyCo.,Ltd. |
| XinfengMicrocrystalline | JiangxiXinfengMicrocrystallineJadeCo.,Ltd. |
| NanoCrystallizedGlass | JiangxiGoldenPhoenixNanoCrystallizedGlassCo.,Ltd. |
| ShenzhenKangxinwei | ShenzhenKangxinweiSemiconductorCo.,Ltd. |
| ShenzhenMeixin | ShenzhenMeixinSemiconductorTechnologyCo.,Ltd. |
| HefeiKangxinwei | HefeiKangxinweiStorageTechnologyCo.,Ltd. |
| ShenzhenNianhua | ShenzhenNianhuaEnterpriseManagementCo.,Ltd. |
| KonkaEco-Development | ShenzhenKonkaEco-DevelopmentInvestmentCo.,Ltd. |
| KonkaRonghe | KonkaRongheIndustrialTechnology(Foshan)Co.,Ltd. |
| SuiningKonkaIndustrialPark | SuiningKonkaIndustrialParkDevelopmentCo.,Ltd. |
| Kangjiatong | SichuanKangjiatongSupplyChainManagementCo.,Ltd. |
| KonkaSuyuan | ShenzhenKonkaSuyuanInvestmentIndustrialCo.,Ltd. |
| CSRC | TheChinaSecuritiesRegulatoryCommission |
| SZSE | TheShenzhenStockExchange |
| CSRCShenzhen | TheShenzhenBureauoftheChinaSecuritiesRegulatoryCommission |
| RMB,RMB’0,000,RMB’00,000,000 | ExpressedintheChinesecurrencyofRenminbi,expressedintensofthousandsofRenminbi,expressedinhundredsofmillionsofRenminbi |
PartIICorporateInformationandKeyFinancialInformation
ICorporateInformation
Stockname
| 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. |
WebsitedesignatedbyCSRCforpublicationofthisReport
| 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) | SupplychainmanagementandenvironmentalprotectionoperationshavebeenaddedtotheprincipalactivitiesoftheCompany. |
| Everychangeofcontrollingshareholdersinceincorporation(ifany) | Nochange |
VOtherInformationTheindependentauditfirmhiredbytheCompany:
| Name | RuihuaCertifiedPublicAccountants(LLP) |
| Officeaddress | 9F,WestTower,ChinaOverseasPropertyPlaza,BuildingNo.7,CompoundNo.8,XibinheRoad,YongdingMen,DongchengDistrict,Beijing,P.R.C. |
| Accountantswritingsignatures | LiuJianhua,ShenLingzhi |
TheindependentsponsorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyintheReportingPeriod:
□Applicable√NotapplicableTheindependentfinancialadvisorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyintheReportingPeriod:
□Applicable√NotapplicableVIKeyFinancialInformationIndicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.□Yes√No
| 2018 | 2017 | 2018-over-2017change(%) | 2016 | |
| Operatingrevenue(RMB) | 46,126,797,341.33 | 31,227,763,249.71 | 47.71% | 20,299,348,136.21 |
| Netprofitattributabletothelistedcompany’sshareholders(RMB) | 411,289,744.68 | 5,057,025,155.71 | -91.87% | 95,673,028.03 |
Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalitems(RMB)
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalitems(RMB) | -795,400,491.44 | -97,284,945.83 | -717.60% | -283,460,349.24 |
| Netcashgeneratedfrom/usedinoperatingactivities(RMB) | -3,229,823,872.66 | -4,314,257,622.47 | 25.14% | -972,135,787.43 |
| Basicearningspershare(RMB/share) | 0.1708 | 2.1001 | -91.87% | 0.0397 |
| Dilutedearningspershare(RMB/share) | 0.1708 | 2.1001 | -91.87% | 0.0397 |
| Weightedaveragereturnonequity(%) | 5.11% | 63.26% | -58.15% | 3.35% |
| 31December2018 | 31December2017 | Changeof31December2018over31December2017(%) | 31December2016 | |
| Totalassets(RMB) | 32,985,061,889.03 | 23,558,735,469.78 | 40.01% | 17,243,119,597.97 |
| Equityattributabletothelistedcompany’sshareholders(RMB) | 8,104,736,790.53 | 7,994,145,476.61 | 1.38% | 2,901,481,607.04 |
VIIAccountingDataDifferencesunderChina’sAccountingStandardsforBusinessEnterprises(CAS)andInternationalFinancialReportingStandards(IFRS)andForeignAccountingStandards1.NetProfitandEquityunderCASandIFRS□Applicable√NotapplicableNodifferencefortheReportingPeriod.2.NetProfitandEquityunderCASandForeignAccountingStandards□Applicable√NotapplicableNodifferencefortheReportingPeriod.VIIIKeyFinancialInformationbyQuarter
Unit:RMB
| Q1 | Q2 | Q3 | Q4 | |
| Operatingrevenue | 7,773,238,729.83 | 9,852,176,039.99 | 12,136,315,129.29 | 16,365,067,442.22 |
Netprofitattributabletothelistedcompany’sshareholders
| Netprofitattributabletothelistedcompany’sshareholders | 55,758,297.40 | 286,034,741.63 | 88,041,649.48 | -18,544,943.83 |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalitems | -68,684,426.14 | -232,186,186.66 | -202,316,654.64 | -292,213,224.00 |
| Netcashgeneratedfrom/usedinoperatingactivities | -1,019,365,516.72 | -818,793,189.14 | -1,058,825,594.70 | -332,839,572.10 |
IndicatebytickmarkwhetheranyofthequarterlyfinancialdatainthetableaboveortheirsummationsdiffersmateriallyfromwhathavebeendisclosedintheCompany’squarterlyorinterimreports.□Yes√NoIXExceptionalGainsandLosses√Applicable□Notapplicable
Unit:RMB
| Item | 2018 | 2017 | 2016 | Note |
| Gainorlossondisposalofnon-currentassets(inclusiveofimpairmentallowancewrite-offs) | 732,818,574.90 | 6,470,215,253.82 | 242,932,907.65 | |
| Governmentsubsidieschargedtocurrentprofitorloss(exclusiveofgovernmentsubsidiesgivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsasperthegovernment’suniformstandards) | 259,609,022.27 | 178,372,701.34 | 113,350,808.96 | |
| GainequaltotheamountbywhichinvestmentcostsfortheCompanytoobtainsubsidiaries,associatesandjointventuresarelowerthantheCompany’senjoyablefairvalueofidentifiablenetassetsofinvesteeswhenmakinginvestments | 220,045,229.63 | |||
| Gainorlossonassetsentrustedtootherentitiesforinvestmentormanagement | 182,022,653.32 | 70,070,846.08 | 70,849,063.30 | |
| Gainorlossonfair-valuechangesintradingfinancialassetsandliabilities&investmentincomefromdisposaloftradingfinancialassetsandliabilitiesandavailable-for-salefinancialassets(exclusiveofeffectiveportionofhedgesthatariseintheCompany’sordinarycourseofbusiness) | 39,542,461.74 | -63,931,276.14 | 17,953,552.28 |
Gainorlossonloanentrustments
| Gainorlossonloanentrustments | 1,389,042.48 | 808,737.50 | 707,777.79 | |
| Non-operatingincomeandexpenseotherthantheabove | 73,907,331.00 | 41,449,367.77 | 22,934,301.50 | |
| Othergainsandlossesthatmeetthedefinitionofexceptionalgain/loss | 17,974,523.98 | 87,640,651.87 | 168,175.52 | |
| Less:Incometaxeffects | 253,497,204.45 | 1,603,618,658.08 | 78,609,375.35 | |
| Non-controllinginterestseffects(netoftax) | 67,121,398.75 | 26,697,522.62 | 11,153,834.38 | |
| Total | 1,206,690,236.12 | 5,154,310,101.54 | 379,133,377.27 | -- |
ExplanationofwhytheCompanyreclassifiesasrecurrentanexceptionalgain/lossitemdefinedorlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems:
√Applicable□Notapplicable
| Item | Amountinvolved(RMB) | Reason |
| Taxrebatesonsoftware | 64,656,609.96 | GovernmentsubsidiesgivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsaspergovernment’suniformstandards |
PartIIIBusinessSummary
IPrincipalActivityoftheCompanyintheReportingPeriodIstheCompanysubjecttoanyindustry-specificdisclosurerequirements?No.Currently,theCompanyconsistsofthreemajorbusinessdivisions,namely,theconsumerelectronicdivision,thesupplychainmanagementdivisionandtheenvironmentalprotectiondivision,whicharedetailedasfollows:
(I)TheConsumerElectronicDivisionThisdivisionprimarilycomprisesthemultimediasub-division,thewhitegoodssub-divisionandthemobilephonesub-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.TheCompanyoffersInternetTVservicesbasedonthesmartTVsithassoldtoendusers.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.
3.TheMobilePhoneSub-DivisionThemobilephonesoftheCompanyaresoldtoboththedomesticandoverseasmarkets.TheoverseassalesmainlyrelyonB2Bandtheprofitcomesfromthemarginsbetweenthecostsandthesellingpricesofthemobilephones.Asforthedomesticsalesofitsmobilephones,theCompanyreliesonB2BandB2C,andprofitsmainlyfromthecostsandthesellingpricesofitsproductsandslightlyfromtherelatedvalueaddedservices.(II)TheSupplyChainManagementDivisionInthisbusiness,relyingontheadvantagesoftherawmaterialprocurementchannels,distributionsystemsandterminalnetworksofitsconsumerelectronicbusiness,theCompanyhelpsupstreamanddownstreamenterprisesofthesupplychainsolvechannelproblemscausedbyasymmetricinformationandimproveefficiency.Atpresent,thisbusinessrunsontwomodels.Intheprocurementanddistributionsupplychainmodel,theCompanybenefitsfrompurchasingICchips,LCDscreens,etc.fromupstreamsuppliersandsellingthemtodownstreamcustomersthroughthesupplychainofitstraditionalcorebusiness.Supplychainservicesareanothermodel.Capitalizingonitsyearsofexperienceinproductqualitycontrol,outsourcingpartnerassessmentandinternationaltrade,theCompanyisabletohelpimprovetheclient’ssupplychaininefficiencyandcostthroughtheprovisionofservicesincludingproductqualitycontrol,warehousingandlogistics,customsclearanceofimportsandexports,documentation,taxhandling,outsourcingpartnerselection,etc.Profitcomesfromservicecharges.Additionally,thesupplychainmanagementbusinesscanhelptheCompanyestablishgoodrelationshipswithitsupstreamsuppliersanddownstreamcustomers,andkeepitinformedofpricesofthematerialsusedinitsproductionforbettercostcontroloveritsexistingproducts.(III)TheEnvironmentalProtectionDivisionCurrently,thisbusinessfocusesonwatertreatment,recyclingofrenewableresourcesandthenewmaterialofglassceramic.WaterengineeringPPP(Public-PrivatePartnership)projectsareundertakenunderBOT(Build-Operate-Transfer)orEPC(EnergyPerformanceContracting)models.Renewableresourcesarecollected,sorted,processed,distributedandsold.Andglassceramicproductsaredeveloped,producedandmarketed.IISignificantChangesinMajorAssets1.SignificantChangesinMajorAssets
Majorassets
| Majorassets | Mainreasonforsignificantchanges |
| Equityassets | EquityinvestmentsattheendoftheReportingPeriodrose99.83%comparedtothebeginningamount,primarilydrivenbytheshiftofAnhuiKaikaiShijieE-commerceCo.,Ltd.andKunshanKangshengInvestmentDevelopmentCo.,Ltd.fromconsolidatedsubsidiariestolong-termequityinvestmentsmeasuredattheequitymethod,aswellas |
bynewequityinvestmentsinassociates.
| bynewequityinvestmentsinassociates. | |
| Fixedassets | FixedassetsattheendoftheReportingPeriodrose51.86%comparedtothebeginningamount,primarilydrivenbythefixedassetsofthenewlyacquiredsubsidiaries. |
| Intangibleassets | IntangibleassetsattheendoftheReportingPeriodrose259.79%comparedtothebeginningamount,primarilydrivenbytheconsolidatedintangibleassets(landuserights,franchiserights,etc.,attheircarryingamounts)ofacquireesShandongEconTechnologyCo.,Ltd.,GuangDongXingDaHongYeElectronicCo.,Ltd.andJiangxiKonkaNewMaterialTechnologyCo.,Ltd.(formerlyknownas“JiujiangGoldenPhoenixDecorationMaterialCo.,Ltd.”)intheCurrentPeriod. |
| Constructioninprogress | ConstructioninprogressattheendoftheReportingPeriodrose1502.25%comparedtothebeginningamount,primarilydrivenbytheconstructioninprogressofthenewlyacquiredsubsidiaries. |
| Goodwill | GoodwillattheendoftheReportingPeriodrose23,684.69%comparedtothebeginningamount,primarilydrivenbytheCompany’sacquisitionsofa51%interestinShandongEconTechnologyCo.,Ltd.,GuangDongXingDaHongYeElectronicCo.,Ltd.andJiangxiKonkaNewMaterialTechnologyCo.,Ltd.intheCurrentPeriod. |
2.MajorAssetsOverseas□Applicable√NotapplicableIIICoreCompetitivenessAnalysisIstheCompanysubjecttoanyindustry-specificdisclosurerequirements?No.TheCompany’scorecompetitivenessliesinitsR&Dability,brand,marketingnetworkandhumanresources.Ithasdevelopedathree-levelR&Dsystemof“KonkaResearchInstitute-MultimediaR&DCentre-specializeddesigninstitutes”,withcloseto100coretechnologiesandapproximately2,000R&Dpersonnel.Italsoboastsastrongbrandpresenceamongconsumers,aswellasamongbanksandotherfinancingchannels.Additionally,itsdomesticmarketingandservicenetwork,including67branchcompanies,over200officesandabout3,300after-salesservicestationsacrossthecountry,directlyconnecttoaround3,000retailterminals,alongwithawell-establishedoverseasmarketingnetwork.Meanwhile,ithashigh-levelpersonnelwithyearsofrichmanagementandindustryexperience,aswellasahigh-qualityteamwithstrongexecutioncapabilities.
PartIVOperatingPerformanceDiscussionandAnalysis
IOverview(I)KeyOperatingResultsoftheReportingPeriodFor2018,theCompanyrecordedoperatingrevenueofRMB46.127billion,up47.71%year-on-year.Netprofitattributabletothelistedcompany’sshareholdersstoodatRMB0.411billion,representingayear-on-yeardrop,astherewasnosuchincomeduringtheReportingPeriodasthelarge-amountexceptionalgainfromthetransferofa70%interestinShenzhenKangqiaoJiachengPropertyInvestmentCo.,Ltd.in2017.Excludingthegainfromthetransferofthe70%interestinShenzhenKangqiaoJiachengPropertyInvestmentCo.,Ltd.,netprofitattributabletothelistedcompany’sshareholdersin2018rose22.56%ascomparedto2017.WhattheCompanyhasaccomplishedin2018issummarizedasfollows:
1.FormulatedandpromotedthenewdevelopmentstrategyorientedbytransformationandupgradingIn2018,theCompanyformulatedandpromotedtheimplementationofthenewdevelopmentstrategyorientedbytransformationandupgrading,definedthecorepositioningofaplatformcompanydrivenbyscientificandtechnologicalinnovationandpersistedinthedevelopmentorientationof“Technology+Industry+Park”andthedevelopmentmodeof“Hardware+Software”,“Terminals+Users”and“Technology+Holding”.Withreform,transformationandupgradingasitsstrategies,theCompanystrovetoestablishfourmajorbusinessgroups,includingIndustrialProductBusinessGroup,TechnologyParkBusinessGroup,PlatformServiceBusinessGroupandInvestmentandFinanceBusinessGroup.Sofar,theCompanyhasgraduallyrealizedtheimplementationofthetransformationandupgradingstrategy.2.Furtherpromotedthemixed-ownershipreformIn2018,theCompanypromotedthemodeofmixed-ownershipreforminitsfourmajorbusinessgroups.Thereformwascarriedouton17subsidiariesatalllevelsthroughouttheyear.Inparticular,ShenzhenE2infoNetworkTechnologyCo.,Ltd.,aholdingsubsidiaryoftheCompanyengagedinthebusinessofInternetuseroperations,introducedAlibaba(China)TechnologyCo.,Ltd.(holding3.3898%oftheshares).Accordingtotheagreement,AlibabawouldincreaseitsshareholdingofE2infothroughcapitalincrease,withtheultimateshareholdingproportionrestrictedwithin5%;AnhuiKaikaiShijieE-commerceCo.,Ltd.,aformerholdingsubsidiaryengagedintheoperationsofKKTVcolorTVsetbusinesshasintroducedGuangdongSouthAishiEntertainmentTechnologyCo.,Ltd.(holding10%oftheshares)andAlibaba(China)TechnologyCo.,Ltd.(holding3.3898%
oftheshares),whichisgoodforpromotingthestrategicupgradingandrapiddevelopmentoftheCompany’sInternetbusiness.Inaddition,theCompanydiverteditsmultimediabusinesssuchascolorTVsettoShenzhenKonkaElectronicsTechnologyCo.,Ltd.tofacilitatetheoperationsofsuchbusinessbyanindependentcompany,layingafoundationforintroducingexternalresourcesforrelatedbusinessesandimplementingthemixed-ownershipreform.3.CarriedoutindustriallayoutandtheimplementationofnewbusinessesIn2018,theCompanyformedanindustriallayoutconsistingfourmajorbusinessgroupsstepbystep,includingIndustrialProductBusinessGroup,TechnologyParkBusinessGroup,PlatformServiceBusinessGroupandInvestmentandFinanceBusinessGroup,andmadegreateffortsindrivingtheexpansionandimplementationofnewbusinesses:First,theCompanyacquired51%oftheequityofEconTechnology,acompanyengagedincomprehensivewatermanagementandwasconsecutivelyawardedwithaseriesofcomprehensivewatermanagementprojects.Furthermore,therenewableresourcetreatmentbusinesssawarapiddevelopment.Second,theCompanyacquired51%oftheequityofJiangxiKonkaNewMaterialTechnologyCo.,Ltd.,anationalhi-techenterpriseengagedintheproductionofglassceramicmaterial.Third,theCompanycompletedtheoveralldesignandstrategicplanningforsemiconductorbusiness,definedtheproductorientationforthebusinessandintroducedrelevanttechnologiesandmanagementteams.4.AccomplishedtheimplementationofmultipletechnologyparksTechnologyparkbusinessisanimportantcarrierofthedevelopmentmodeof“Technology+Industry+Park”.In2018,theCompanymadeeffortsandestablishedthefollowingthreebusinesssegmentsbyintegratinginternalandexternalresources,i.e.headquarterseconomy,technologyparksandlogisticsparks:HeadquarterseconomywasimplementedinJiangbeiNewDistrict(Nanjing),theEconomicDevelopmentZone(Chuzhou)andGuangmingNewDistrict(Shenzhen);technologyparkswereconstructedinSuining,YibinandChuzhourespectively;logisticsparkswereimplementedinKunshan(Jiangsu)andothercities,layingasolidfoundationforthenextstepofbusinessdevelopment.5.AcquiredFrestectoexpandwhitegoodsbusinessInJune2018,theCompanyacquired100%oftheequityofHenanFrestecElectricalAppliancesCo.,Ltd.,HenanFrestecRefrigerationApplianceCo.,Ltd.andHenanFrestecHouseholdAppliancesCo.,Ltd.atRMB455millionyuanthroughAnhuiKonkaElectricalApplianceTechnologyCo.,Ltd.,andrestoredtheproductionofFrestecwithintwomonths.TheacquisitionwillhelptheCompanytorapidlyexpandtheindustrialscaleinthefieldofwhitegoods,formaframeworkofsynergisticdevelopmentof“Konka+Frestec”andmaketheCompany’swhitegoodsbusinessbiggerandstronger.6.IncreasedR&DinvestmentandpromotedtechnologicalinnovationWhilepromotingmechanismandsystemreforms,theCompanycontinuedtoincreaseinvestmentin
R&Dandtechnologicalinnovation,whichhasproducedpositiveresults.TheCompanyhasrecentlyreceivedtheNationalGradeIIPrizeofScienceandTechnologyProgressfortheprojectofDigitalTVBroadcastSystemandDomesticProductionofCoreChips.Additionally,itsuccessfullydevelopedthe“8Kdecodechip”withproprietaryintellectualpropertyrightsandlaunchedaseriesofindustrialleadingproductssuchasOLEDTV,AIfacerecognitionTV,semiconductordisplayTV,wallpaperTVand“K-Fresh”fridges.Meanwhile,theCompanywasproactivelyplanningthenewsmarthouseholdmodel.Itbuiltasystembasedon“cloudtocloudinterconnection”jointlywiththird-partyplatformsincludingChinaMobileandAmazonwithacontinuousextensionfromintelligentproductstosmarthouseholdscenarios.(II)BusinessHighlightsfor20181.MultimediabusinessIn2018,theCompanyfurtheroptimizedthestructureofitscolorTVbusiness,withayear-on-yearincreaseof33%inthesalesvolumeofoverseasbusiness.Second,theCompanyproactivelypromotedthemechanismreformincolorTVbusiness,suchastheindependentcorporateoperationsofcolorTV,channelmodelreformsandownershipreformsforsalesbranches.Finally,theCompanykeptreinforcinginnovation-drivenforcolorTVbusiness,increasedR&Dinvestmenttofurtherenhancethetechnologicalinnovationlevelandtooktheleadinlaunching8Kdecodechipswithproprietaryintellectualpropertyrightsaswellasremotevoiceandfacerecognition.2.WhitegoodsbusinessIn2018,thescaleofwhitegoodsbusiness(includingFrestec)achievedagrowthof22.46%,especiallye-commercebusiness,whichincreasedby33%fromthepreviousyear;inaddition,theCompanyacquiredFrestecElectricalAppliancesandquicklycompletedreorganization,whichenabledthedual-brandoperationsof“Konka+Frestec”andsynergyofmultiplecategoriesandplayedasignificantroleindrivingtherapidexpansionoftheCompany’sindustrialscaleinthefieldofwhitegoodsandenhancingtheprofitabilityandmarketcompetitivenessofwhitegoodsbusiness.3.EnvironmentalprotectionbusinessIntermsofcomprehensivewatermanagement,in2018,theCompanywasawardedwithatotalofeightenvironmentalprotectionprojectsinDonggang(Liaoning),Weifang(Shandong)andLaizhou(Shandong)andtheamountofawardedcontractsreachednearlyRMB8billionyuan;inrespectofrenewableresources,theCompanymadeplansfortherecyclingandprocessingforreuseofwastepaper,scrapmetalandwasteplastics;intermsofnewmaterials,theCompanyestablishedstrategiesinthenewmaterialofglassceramic.4.SemiconductorbusinessIn2018,theCompanycompletedtheoveralldesignandstrategicplanningforsemiconductorbusiness,definedtheproductorientationforthebusinessandintroducedrelevanttechnologiesandmanagementteams.
5.MobileInternetbusinessIn2018,intermsofmobileInternetbusiness,theCompanycompletedrelocationoftheintegratedbusinesstoYibin,Sichuan,andstartedtheexplorationandtransformationfrommobilephonemanufacturertoaproviderofintegratedsolutionsofintelligentterminals.6.TechnologyparkbusinessIn2018,theCompanyvigorouslydevelopedthetechnologyparkbusinesswithindustrialdevelopmentatitscoreandparkdevelopmentasthecarrierbymeansofequityinvestment.Itimplementedanumberofprojects,includingPhaseI&IIoftheKonkaChuzhouTechnologicalInnovationCentre,YibinKonkaSmartTerminalsIndustrialPark,ChuzhouKonkaSmartAppliancesandEquipmentIndustrialPark,NanjingK-StarCloudNetworkHeadquartersandSuiningKonkaElectronicTechnologyIndustrialParktosupportthetransformationandupgradingoftheCompany’sdevelopmentmode.7.SupplychainmanagementbusinessIn2018,theCompanyachievedayear-on-yearincreaseof107.65%intheoperatingrevenuefromsupplychainmanagementbusiness.Furthermore,itwasselectedonthelistof“NationalSupplyChainInnovationandApplicationPilotEnterprises”throughcontinuousupgradingofbusinessmodelandenhancementofriskcontrol.8.InternetbusinessInrespectofInternetbusiness,in2018,theCompanyintroducedAlibaba(China)TechnologyCo.,Ltd.asastrategicinvestor,withthetotalnumberofusersreaching36million.Withaconsiderableincreaseinuservalueandprofitability,theCompanyexperiencedstablegrowthinprofitsandmarkedimprovementinoperatingqualitywhileachievingasubstantialincreaseinrevenue.9.InvestmentbusinessIn2018,theCompanyinvestedinEconTechnologyandJiangxiKonkaNewMaterialTechnologyCo.,Ltd.,accomplishingthelayoutinthenewbusinessesofenvironmentalprotection,semiconductorsandnewmaterialsandpromotingtherapiddevelopmentoftheCompany.10.VenturecapitalbusinessIn2018,theCompanyaccomplishedgloballayoutforitsventurecapitalbusiness.Inrespectofdomesticmarket,theCompanysetupeightincubatorsinsevencitiessuchasShenzhen,Yantai,ChengduandYibin.Intermsofoverseasmarket,theCompanyestablishedsixincubatorsinsixcitiessuchasSiliconValley,Chicago,LondonandHelsinki.ThenewlyformedincubationnetworkcoveringtheglobehaspowerfullyenhancedtheCompany’sinfluenceinscienceandtechnologyinnovationfield.
IICoreBusinessAnalysis(I)OverviewSee“IOverview”above.(II)RevenueandCostAnalysis1.BreakdownofOperatingRevenue
Unit:RMB
2018
| 2018 | 2017 | Change(%) | |||
| Operatingrevenue | As%oftotaloperatingrevenue(%) | Operatingrevenue | As%oftotaloperatingrevenue(%) | ||
| Total | 46,126,797,341.33 | 100% | 31,227,763,249.71 | 100% | 47.71% |
| Byoperatingdivision | |||||
| Electronics | 13,170,227,703.47 | 28.55% | 16,148,586,075.45 | 51.71% | -18.44% |
| Supplychainmanagement | 28,348,817,442.89 | 61.46% | 13,652,512,654.75 | 43.72% | 107.65% |
| Environmentalprotection | 3,020,514,260.13 | 6.55% | 0.00 | 0.00% | |
| Other | 1,587,237,934.84 | 3.44% | 1,426,664,519.51 | 4.57% | 11.26% |
| Byproductcategory | |||||
| ColourTVs | 9,892,486,636.93 | 21.45% | 11,994,950,476.66 | 38.41% | -17.53% |
| Mobilephones | 331,298,592.29 | 0.72% | 918,711,012.38 | 2.94% | -63.94% |
| Whitegoods | 2,127,731,143.29 | 4.61% | 1,737,464,511.08 | 5.56% | 22.46% |
| Supplychainmanagement | 28,348,817,442.89 | 61.46% | 13,652,512,654.75 | 43.72% | 107.65% |
| Environmentalprotection | 3,020,514,260.13 | 6.55% | 0.00 | 0.00% | |
| Other | 2,405,949,265.80 | 5.22% | 2,924,124,594.84 | 9.36% | -17.72% |
| Byoperatingsegment | |||||
| Domestic | 16,868,143,462.93 | 36.57% | 16,031,740,206.40 | 51.34% | 5.22% |
| Overseas | 29,258,653,878.40 | 63.43% | 15,196,023,043.31 | 48.66% | 92.54% |
2.OperatingDivision,ProductCategoryorOperatingSegmentContributingover10%ofOperatingRevenueorOperatingProfit√Applicable□Notapplicable
IstheCompanysubjecttoanyindustry-specificdisclosurerequirements?No.
Unit:RMB
Operatingrevenue
| Operatingrevenue | Costofsales | Grossprofitmargin | YoYchangeinoperatingrevenue(%) | YoYchangeincostofsales(%) | YoYchangeingrossprofitmargin(%) | |
| Byoperatingdivision | ||||||
| Electronics | 13,170,227,703.47 | 11,258,550,192.17 | 14.52% | -18.44% | -14.34% | -4.10% |
| Supplychainmanagement | 28,348,817,442.89 | 28,068,819,224.05 | 0.99% | 107.65% | 107.90% | -0.12% |
| Byproductcategory | ||||||
| ColourTVs | 9,892,486,636.93 | 8,689,731,404.20 | 12.16% | -17.53% | -13.64% | -3.95% |
| Supplychainmanagement | 28,348,817,442.89 | 28,068,819,224.05 | 0.99% | 107.65% | 107.90% | -0.12% |
| Byoperatingsegment | ||||||
| Domestic | 16,868,143,462.93 | 14,643,866,818.13 | 13.19% | 5.22% | 7.12% | -1.54% |
| Overseas | 29,258,653,878.40 | 28,583,747,096.32 | 2.31% | 92.54% | 102.46% | -4.79% |
CorebusinessdataoftheprioryearrestatedaccordingtothechangedstatisticalcaliberfortheReportingPeriod:
□Applicable√Notapplicable3.WhetherRevenuefromPhysicalSalesIsHigherthanServiceRevenue√Yes□No
| Operatingdivision | Item | Unit | 2018 | 2017 | Change(%) |
| Electronics | Unitsales | 0,000units | 1,232 | 1,291 | -4.57% |
| Output | 0,000units | 1,063 | 1,091 | -2.57% | |
| Inventory | 0,000units | 129 | 135 | -4.44% |
Anyover30%YoYmovementsinthedataaboveandwhy:
□Applicable√Notapplicable4.ExecutionProgressofMajorSignedSalesContractsintheReportingPeriod□Applicable√Notapplicable
5.BreakdownofCostofSalesByproductcategory
Unit:RMB
Productcategory
| Productcategory | Item | 2018 | 2017 | Change(%) | ||
| Costofsales | As%oftotalcostofsales(%) | Costofsales | As%oftotalcostofsales(%) | |||
| ColorTVs | ColorTVs | 8,689,731,404.20 | 20.10% | 10,062,760,446.56 | 36.21% | -13.64% |
| Mobilephones | Mobilephones | 327,425,343.91 | 0.76% | 827,228,372.16 | 2.98% | -60.42% |
| Whitegoods | Whitegoods | 1,767,282,597.98 | 4.09% | 1,404,308,959.94 | 5.05% | 25.85% |
| Supplychainservices | Supplychainservices | 28,068,819,224.05 | 64.93% | 13,501,073,391.55 | 48.58% | 107.90% |
| Environmentalprotection | Environmentalprotection | 2,634,491,782.63 | 6.09% | 0.00 | 0.00% | |
| Other | Other | 1,739,863,561.68 | 4.02% | 1,993,614,109.59 | 7.17% | -12.73% |
Note:
N/A6.ChangesintheScopeofConsolidatedFinancialStatementsfortheReportingPeriod√Yes□No
| Companyname | Registeredcapital(RMB’0,000) | TheCompany’sinterest(%) | Dateofchange | Reasonforchange |
| EconTechnology(anditssubsidiaries) | 16,400.00 | 51.00 | 2018-5-4 | Addedtotheconsolidatedfinancialstatementsduetoacquisition |
| HenanFrestecRefrigerationApplianceCo.,Ltd. | 12,305.11 | 51.00 | 2018-8-3 | |
| HenanFrestecHouseholdAppliancesCo.,Ltd. | 9,900.00 | 51.00 | 2018-8-3 | |
| HenanFrestecElectricalAppliancesCo.,Ltd. | 66,863.77 | 51.00 | 2018-8-3 | |
| GuangDongXingDaHongYeElectronicCo.,Ltd.(inclusiveofitssubsidiaries) | 8,889.00 | 51.00 | 2018-6-29 | |
| JiangxiKonkaNewMaterialTechnologyCo.,Ltd.(inclusiveofitssubsidiaries) | 27,272.7273 | 51.00 | 2018-8-16 | |
| ChengduKonkaIncubatorManagementCo.,Ltd. | 500.00 | 51.00 | 2018-2-5 | Addedtotheconsolidatedfinancialstatementsduetoincorporation |
| ChengduAnrenKonkaCulturalandCreativeIncubatorManagementCo.,Ltd. | 500.00 | 51.00 | 2018-8-16 | |
| GuiyangKonkaEnterpriseServiceCo.,Ltd. | 500.00 | 51.00 | 2018-9-5 |
NanjingChuanghuiSmartTechnologyCo.,Ltd.
| NanjingChuanghuiSmartTechnologyCo.,Ltd. | 100.00 | 40.80 | 2018-7-26 |
| GuizhouKonkaEnterpriseManagementServiceCo.,Ltd. | 500.00 | 51.00 | 2018-11-8 |
| YibinKonkaIncubatorManagementCo.,Ltd. | 2,000.00 | 51.00 | 2018-10-18 |
| ShenzhenKonkaCross-BorderTechnologicalInnovationServiceCo.,Ltd. | 100.00 | 26.01 | 2018-11-21 |
| JialiInternational(HongKong)Limited | HKD500.00 | 51.00 | 2018-2-2 |
| SichuanKonkaSmartterminalTechnologyCo.,Ltd | 10,000.00 | 51.00 | 2018-1-15 |
| AnhuiKonkaElectricalApplianceTechnologyCo.,Ltd. | 10,000.00 | 51.00 | 2018-6-12 |
| JiaxinTechnologyCo.,Ltd. | HKD1,000.00 | 51.00 | 2018-1-25 |
| ShenzhenKonkaYifangTechnologyCo.,Ltd. | 1,000.00 | 60.00 | 2018-12-3 |
| Kangjietong(HongKong)Limited | HKD100.00 | 51.00 | 2018-1-9 |
| YibinKonkaTechnologyParkOperationCo.,Ltd. | 10,000.00 | 100.00 | 2018-1-15 |
| SichuanKonkaIndustrialNewTownDevelopmentCo.,Ltd. | 10,000.00 | 51.00 | 2018-3-7 |
| KonkaSuiyongInvestment(Shenzhen)Co.,Ltd. | 5,000.00 | 51.00 | 2018-5-11 |
| HainanKonkaTechnologyIndustryDevelopmentCo.,Ltd. | 10,000.00 | 51.00 | 2018-8-9 |
| ShenzhenKangquanEnterpriseManagementConsultingCo.,Ltd. | 1,000.00 | 51.00 | 2018-6-26 |
| ShenzhenKonkaElectronicsTechnologyCo.,Ltd. | 100,000.00 | 100.00 | 2018-1-16 |
| NanjingKonkaSmartTechnologyCo.,Ltd. | 5,000.00 | 100.00 | 2018-12-28 |
| AnhuiKonkaZhilianE-CommerceCo.,Ltd. | 5,000.00 | 100.00 | 2018-9-20 |
| KonkaHuanjia(Dalian)EnvironmentalTechnologyCo.,Ltd. | 18,000.00 | 51.00 | 2018-6-6 |
| ShanghaiKonkaIndustrialCo.,Ltd. | 10,000.00 | 100.00 | 2018-4-11 |
| ChuzhouKangyongHealthIndustryDevelopmentCo.,Ltd. | 5,000.00 | 100.00 | 2018-7-18 |
| YantaiKonkaIndustrialCo.,Ltd. | 10,000.00 | 89.71 | 2018-9-5 |
| YantaiKangjinTechnologyDevelopmentCo.,Ltd. | 10,000.00 | 62.80 | 2018-9-7 |
| ShandongKangxinIndustrialDevelopmentCo.,Ltd. | 10,000.00 | 51.00 | 2018-12-7 |
| ShenzhenKangxinweiSemiconductorCo.,Ltd. | 10,000.00 | 100.00 | 2018-10-19 |
ShenzhenMeixinSemiconductorTechnologyCo.,Ltd.
| ShenzhenMeixinSemiconductorTechnologyCo.,Ltd. | 1,000.00 | 51.00 | 2018-10-31 | |
| HefeiKangxinweiStorageTechnologyCo.,Ltd. | 5,000.00 | 51.00 | 2018-11-7 | |
| ShenzhenNianhuaEnterpriseManagementCo.,Ltd. | 3,000.00 | 100.00 | 2018-8-22 | |
| ShenzhenKonkaEco-DevelopmentInvestmentCo.,Ltd. | 500.00 | 51.00 | 2018-12-27 | |
| KonkaRongheIndustrialTechnology(Foshan)Co.,Ltd. | 5,000.00 | 51.00 | 2018-12-26 | |
| SuiningKonkaIndustrialParkDevelopmentCo.,Ltd. | 20,000.00 | 100.00 | 2018-12-26 | |
| SichuanKangjiatongSupplyChainManagementCo.,Ltd. | 3,000.00 | 51.00 | 2018-3-26 | |
| ShenzhenKonkaSuyuanInvestmentIndustrialCo.,Ltd. | 1,000.00 | 51.00 | 2018-2-5 | |
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | 3,137.2549 | 46.00 | 2018-6-28 | Excludedfromtheconsolidatedfinancialstatementsduetoequitytransfer |
| KunshanKangshengInvestmentDevelopmentCo.,Ltd. | 35,000.00 | 49.00 | 2018-06-25 | |
| ShenzhenKonkaSupplyChainManagementHoldingsCo.,Ltd. | 1,000.00 | 100.00 | 2018-10-15 | Excludedfromtheconsolidatedfinancialstatementsduetode-registration |
| ShenzhenKonkaPlasticProductsCo.,Ltd. | 950.00 | 100.00 | ||
| ChongqingQingjiaElectronicsCo.,Ltd. | 1,500.00 | 40.00 | 2018-10-25 | AsRegentSkyHoldingsLimitedentrustedits20%votingrightinChongqingQingjiatoChongqingMachinery&ElectronicsHolding(Group)Co.,Ltd.formanagement,theCompanyceaseditscontroloverChongqingQingjiaandexcludeditfromtheCompany’sconsolidatedfinancialstatements. |
7.MajorChangestotheBusinessScopeorProductorServiceRangeintheReportingPeriod√Applicable□NotapplicableIn2018,theCompanyenteredtheenvironmentalprotectionindustrythroughtheacquisitionofShandongEconTechnologyCo.,Ltd.andJiangxiKonkaNewMaterialTechnologyCo.,Ltd.8.MajorCustomersandSuppliersMajorcustomers:
Totalsalestotopfivecustomers(RMB)
| Totalsalestotopfivecustomers(RMB) | 13,375,164,153.90 |
| Totalsalestotopfivecustomersas%oftotalsalesoftheReportingPeriod(%) | 29.00% |
| Totalsalestorelatedpartiesamongtopfivecustomersas%oftotalsalesoftheReportingPeriod(%) | 0.00% |
Topfivecustomers:
| No. | Customer | SalesrevenuecontributedfortheReportingPeriod(RMB) | As%oftotalsalesrevenue(%) |
| 1 | CustomerA | 3,737,481,105.58 | 8.10% |
| 2 | CustomerB | 3,595,163,483.38 | 7.79% |
| 3 | CustomerC | 2,613,661,736.46 | 5.67% |
| 4 | CustomerD | 1,785,310,036.98 | 3.87% |
| 5 | CustomerE | 1,643,547,791.50 | 3.56% |
| Total | -- | 13,375,164,153.90 | 29.00% |
Otherinformationaboutmajorcustomers:
√Applicable□NotapplicableNoneofthetopfivecustomerswererelatedpartiesoftheCompany.AndnoneoftheCompany’sdirectors,supervisors,executiveofficers,coretechnicians,over5%shareholders,actualcontrolleroranyotherrelatedpartiesheldequityinterestsinthemajorcustomers,directlyorindirectly.Majorsuppliers:
| Totalpurchasesfromtopfivesuppliers(RMB) | 14,800,491,686.75 |
| Totalpurchasesfromtopfivesuppliersas%oftotalpurchasesoftheReportingPeriod(%) | 33.46% |
| Totalpurchasesfromrelatedpartiesamongtopfivesuppliersas%oftotalpurchasesoftheReportingPeriod(%) | 0.00% |
Informationabouttopfivesuppliers:
| No. | Supplier | PurchaseintheReportingPeriod(RMB) | As%oftotalpurchases(%) |
| 1 | Supplier1 | 4,859,389,472.98 | 10.99% |
| 2 | Supplier2 | 4,697,048,055.43 | 10.62% |
| 3 | Supplier3 | 2,246,973,758.27 | 5.08% |
| 4 | Supplier4 | 1,642,707,211.56 | 3.71% |
| 5 | Supplier5 | 1,354,373,188.51 | 3.06% |
| Total | -- | 14,800,491,686.75 | 33.46% |
Otherinformationaboutmajorsuppliers:
√Applicable□NotapplicableNoneofthetopfivecustomerswererelatedpartiesoftheCompany.AndnoneoftheCompany’sdirectors,supervisors,executiveofficers,coretechnicians,over5%shareholders,actualcontrolleroranyotherrelatedpartiesheldequityinterestsinthemajorcustomers,directlyorindirectly.3.Expense
Unit:RMB
| 2018 | 2017 | Change(%) | Reasonforanysignificantchange | |
| Sellingexpense | 2,282,174,241.64 | 2,141,993,558.11 | 6.54% | |
| Administrativeexpense | 641,892,996.18 | 448,036,697.96 | 43.27% | IncreaseinR&Dexpenseduetoincreaseinexpenseofsubsidiariesnewlymergedandincreaseinlaborcost |
| Financecosts | 399,165,814.39 | 340,918,550.61 | 17.09% | |
| R&Dexpense | 396,460,145.24 | 329,676,982.50 | 20.26% | IncreasingR&Dinvestment |
4.R&DExpense√Applicable□NotapplicableIntheReportingPeriod,theCompanycontinuedtoenhancetheR&Dinputandtriedtolayasolidfoundationforittocarryoutproductdifferentiationthroughconstantlydevelopingnewproducts,studyingnewtechniques,alteringtheexistingequipmentandcontinuouslyenrichingtheproductvarietiesandseries.Meanwhile,itconstantlycarriedouttechnicalinnovationandencouragedsuggestionstoincreaseitsproductionefficiencyandcorecompetitiveness.Inaddition,theCompanywonthesecondprizeofNationalScientificandTechnologicalProgressAwardintheprojectofLocalizationofDigitalTV&BroadcastingSystemandCoreChipstheCompanyparticipatedinrecently.DetailsaboutR&Dexpense:
| 2018 | 2017 | Change(%) | |
| NumberofR&Dpersonnel | 1,467 | 1,353 | 8.43% |
| R&Dpersonnelas%oftotalemployees | 7.74% | 7.59% | 0.15% |
| R&Dexpense(RMB) | 396,460,145.24 | 329,676,982.50 | 20.26% |
R&Dexpenseas%ofoperatingrevenue
| R&Dexpenseas%ofoperatingrevenue | 0.86% | 1.06% | -0.20% |
| CapitalizedR&Dexpense(RMB) | 0.00 | 0.00 | 0.00% |
| CapitalizedR&Dexpenseas%oftotalR&Dexpense | 0.00% | 0.00% | 0.00% |
ReasonsforanysignificantYoYchangeinthepercentageofR&Dexpenseinoperatingrevenue:
□Applicable√NotapplicableReasonforanysharpvariationinthepercentageofcapitalizedR&Dexpenseandrationale:
□Applicable√Notapplicable5.CashFlows
Unit:RMB
| Item | 2018 | 2017 | Change(%) |
| Subtotalofcashgeneratedfromoperatingactivities | 50,553,979,675.62 | 40,942,886,533.13 | 23.47% |
| Subtotalofcashusedinoperatingactivities | 53,783,803,548.28 | 45,257,144,155.60 | 18.84% |
| Netcashgeneratedfrom/usedinoperatingactivities | -3,229,823,872.66 | -4,314,257,622.47 | 25.14% |
| Subtotalofcashgeneratedfrominvestingactivities | 2,900,532,752.51 | 9,053,115,239.75 | -67.96% |
| Subtotalofcashusedininvestingactivities | 5,152,413,759.55 | 4,323,599,750.38 | 19.17% |
| Netcashgeneratedfrom/usedininvestingactivities | -2,251,881,007.04 | 4,729,515,489.37 | -147.61% |
| Subtotalofcashgeneratedfromfinancingactivities | 15,345,431,150.38 | 10,526,601,766.42 | 45.78% |
| Subtotalofcashusedinfinancingactivities | 9,548,537,823.66 | 9,779,757,140.80 | -2.36% |
| Netcashgeneratedfrom/usedinfinancingactivities | 5,796,893,326.72 | 746,844,625.62 | 676.18% |
| Netincreaseincashandcashequivalents | 336,249,777.96 | 1,076,996,758.62 | -68.78% |
Explanationofwhyanyofthedataabovevariessignificantly:
√Applicable□NotapplicableThenetcashgeneratedfrom/usedininvestingactivitieswasnegativeduetothesubsidiariesnewlymergedsuchasGuangdongXingdaHongyeElectronicsCo.,Ltd.andjoint-stockcompaniesnewlyaddedsuchasShenzhenRF-LINKPolytronTechnologiesInc.intheReportingPeriod.Thenetcashgeneratedfrom/usedinfinancingactivitiesincreasedduetotheincreaseinborrowingsoftheCompanyduringtheReportingPeriod.Reasonforanybigdifferencebetweenthenetoperatingcashflowandthenetprofitforthis
ReportingPeriod□Applicable√NotapplicableIIIAnalysisofNon-CoreBusinesses√Applicable□Notapplicable
Unit:RMB
Amount
| Amount | As%oftotalprofit | Source/Reason | Exceptionalorrecurrent | |
| Investmentincome | 927,414,370.96 | 203.87% | TransferofsomeequityinKaikaiShijieandKunshanKangsheng | Exceptional |
| Gain/lossonchangesinfairvalue | 50,191,052.64 | 11.03% | Exceptional | |
| Assetimpairments | 226,869,220.67 | 49.87% | Exceptional | |
| Non-operatingincome | 328,696,140.09 | 72.26% | Taxrebatesofsoftwareisrecurrentandothersareuncertain | |
| Non-operatingexpense | 8,037,851.90 | 1.77% | Exceptional |
IVAnalysisofAssetsandLiabilities1.SignificantChangesinAssetComposition
Unit:RMB
| 31December2018 | 31December2017 | Changeinpercentage(%) | Reasonforanysignificantchange | |||
| Amount | As%oftotalassets | Amount | As%oftotalassets | |||
| Monetarycapital | 4,348,144,129.53 | 13.18% | 3,212,044,851.08 | 13.63% | -0.45% | |
| Accountsreceivable | 4,458,053,586.42 | 13.52% | 3,443,095,947.26 | 14.61% | -1.10% | |
| Inventories | 5,487,605,227.05 | 16.64% | 4,690,363,565.53 | 19.91% | -3.27% | |
| Investmentproperty | 210,824,355.72 | 0.64% | 216,455,629.99 | 0.92% | -0.28% | |
| Long-termequityinvestments | 2,637,780,825.53 | 8.00% | 1,319,987,343.74 | 5.60% | 2.39% | |
| Fixedassets | 2,410,226,495.81 | 7.31% | 1,587,170,348.35 | 6.74% | 0.57% | |
| Constructioninprogress | 2,176,871,530.80 | 6.60% | 135,863,821.01 | 0.58% | 6.02% | |
| Short-term | 13,884,132,931.63 | 42.09% | 6,927,472,037.35 | 29.41% | 12.69% | |
borrowings
| borrowings | |||||
| Long-termborrowings | 445,000,000.00 | 1.35% | 167,000,000.00 | 0.71% | 0.64% |
2.AssetsandLiabilitiesatFairValue√Applicable□Notapplicable
Unit:RMB
| Item | Beginningamount | Gain/lossonfair-valuechangesintheReportingPeriod | Cumulativefair-valuechangeschargedtoequity | ImpairmentallowancefortheReportingPeriod | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Endingamount |
| Financialassets | |||||||
| 1.Financialassetsatfairvaluethroughprofitorloss(derivativefinancialassetsexcluded) | 296,799.53 | 5,168,185.39 | 5,464,984.92 | ||||
| 3.Available-for-salefinancialassets | 58,162.76 | 58,162.76 | |||||
| Subtotaloffinancialassets | 354,962.29 | 5,168,185.39 | 58,162.76 | 5,464,984.92 | |||
| Totaloftheabove | 354,962.29 | 5,464,984.92 | |||||
| Financialliabilities | 47,482,470.50 | 45,022,867.25 | 2,459,603.25 |
SignificantchangestothemeasurementattributesofthemajorassetsintheReportingPeriod:
□Yes√No3.RestrictedAssetRightsasatthePeriod-End
| Item | Endingcarryingvalue(RMB) | Reasonforrestriction |
| Monetarycapital | 913,994,647.81 | Amongthem,45,1,609,200yuanisallkindsofdepositthatcannotbewithdrawnatanytime;235millionyuanisatimedeposit;RMB20,10.352billionisthefundsofthehouseholdsunderthesupervisionofrepayment;19.8millionyuanindepositspledgedasloans;4.3466millionyuanisthelawsuitfrozenfund;2,203,600yuanrestrictedduetootherreasons. |
| Notesreceivable | 1,321,454,860.01 | AsofDecember31,2018,thecompanyhaspledgedthenotesreceivablewiththebookvalueofRMB132,1454,900forissuingbankacceptancebills,lettersofcredit,lettersofguarantee,tradefinancingandothercomprehensivefinancingservices. |
VInvestmentsMade1.TotalInvestmentAmount√Applicable□Notapplicable
AmountofReportingPeriod(RMB)
| AmountofReportingPeriod(RMB) | Amountofthesameperiodoflastyear(RMB) | Change(%) |
| 2,430,495,935.00 | 1,185,098,584.39 | 105.09% |
2.MajorEquityInvestmentsMadeintheReportingPeriod√Applicable□Notapplicable
Unit:RMB
| Investee | Mainbusiness | Investmentmethod | Investmentamount | Shareholdingpercentage | Capitalresources | Partner | Investmentterm | Typeofproducts | Progressasofthebalancesheetdate | Estimatedincome | ProfitsorlossesofinvestmentintheReportingPeriod | Involvinginlawsuitornot | Disclosuredate(ifany) | Disclosureindex(ifany) |
| ChuzhouHuikeIntelligentHouseholdApplianceIndustrialInvestmentPartners | Creditsinvestment | Acquisition | 1,000,000,000.00 | 13..33% | Self-ownedfunds | FirstThaiJinxin(Changxing)InvestmentManagementCo.,Ltd.,ChuzhouTongchuangConstructi | Sevenyears | Credits | Completeregistrationchangingprocedures | - | - | Not | 25December2018 | http://http://www.cninfo.com.cn/new/index/new/index |
| Fixedassets | 226,955,651.88 | Formortgageborrowings.Referto20.Short-termBorrowingsinNoteVI |
| Intangibleassets | 57,207,934.40 | Formortgageborrowings.Referto20.Short-termBorrowingsand28.Long-termBorrowingsinNoteVI |
| Long-termreceivables | 349,416,483.56 | Notetothefinancialstatementsfor2018:"28long-termloans"in"notestoconsolidatedfinancialstatements" |
| Total | 2,869,029,577.66 |
hip(LimitedPartnership)
| hip(LimitedPartnership) | onInvestmentCo.,Ltd.andGuoYuanSecuritiesCo.,Ltd | |||||||||||||
| OrientalKonkaNo.1(Zhuhai)PrivateEquityInvestmentFund(LimitedPartnership) | Equityinvestment | Newlyestablished | 1,001,000,000.00 | 49.95% | Self-ownedfunds | ShenzhenQianhaiOrientalVentureCapitalHoldingCo.,Ltd.,andOrientalHuijia(Zhuhai)AssetManagementCo.,Ltd. | Fiveyears | Equityinvestment | ThefundhasbeensetupandhasinvestedJiangxiYahuaElectronicMaterialsCo.,Ltd.for11.95%equityandGenewTechnologiesCo.Ltd.for2.07%equityaswellasRoshowScienceandTechnologyCo.,Ltd.for5%equity | - | - | Not | 18April2018 | |
| Total | -- | -- | 2,001,000,000.00 | -- | -- | -- | -- | -- | -- | - | - | -- | -- | -- |
3.MajorNon-EquityInvestmentsOngoingintheReportingPeriod√Applicable□Notapplicable
Unit:RMB
| Item | Investmentmethod | Fixedassetsinvestmentornot | Industryinvolved | InputamountintheReportingPeriod | Accumulativeactualinputamountasoftheperiod-end | Capitalresources | Progress | Estimatedrevenues | Accumulativerealizedrevenuesasoftheperiod-end | reasonfornotmeetingthescheduleandexpectedrevenues | Disclosuredate(ifany) | Disclosureindex(ifany) |
KonkaTechnologicalInnovationCenter
| KonkaTechnologicalInnovationCenter | Self-build | Yes | Electronicindustry | 9,169,900 | 88,482,900 | Self-ownedfunds | 7.79% | / | 30,000,000 | N/A | 30December2016 | http://http://www.cninfo.com.cn/new/index/new/index） |
| NewplantinDongguancity | Self-build | Yes | Electronicindustry | 0 | 0 | Self-ownedfunds | 0 | / | 0 | N/A | 11March2017 | |
| YibinKonkaSmartTerminalHigh-TechPark | Self-build | Yes | Electronicindustry | 19,250,000 | 19,250,000 | Self-ownedfunds | 5.20% | / | 0 | N/A | 22May2018 | |
| ChengduBeltandRoadHeadquarters | Self-build | Yes | Electronicindustry | 0 | 0 | Self-ownedfunds | 0 | / | 0 | N/A | 27June2018 | |
| SuiningKonkaElectronictechnologyIndustrialPark | Self-build | Yes | Electronicindustry | 0 | 0 | Self-ownedfunds | 0 | / | 0 | N/A | 17October2018 | |
| Konka(Chuzhou)SmartAppliancesandEquipmentIndustrialPark | Self-build | Yes | Electronicindustry | 76,222,400 | 76,222,400 | Self-ownedfunds | 6.76% | / | 0 | N/A | 25December2018 | |
| Total | -- | -- | -- | 104,64 | 183,95 | -- | -- | 0 | -- | -- | -- |
2,300
| 2,300 | 5,300 |
Notes:(1)InregardtotheKonkaTechnologicalInnovationCentre,thelanduserighttransferagreementhasbeensigned,theprojectisunderplanningandbidding.(2)ConcerningtheDongguancity’snewplant,preparationsareunderwayandtheCompanyiswaitingforthelocalgovernmenttoputouttheprojecttargetlandforbids.(3)Withrespecttothesmartterminalhigh-techpark,thelanduserighttransferagreementhasbeensignedandthegeneralplanisunderway.(4)AsfortheChengduBeltandRoadHeadquarters,preparationsareunderwayandtheCompanyiswaitingforthelocalgovernmenttoputouttheprojecttargetlandforbids.(5)AsforSuiningKonkaElectronictechnologyIndustrialPark,aprojectcompanyhasbeensetupandtheCompanyiswaitingforthelocalgovernmenttoputouttheprojecttargetlandforbids.(6)WithrespecttoKonka(Chuzhou)SmartAppliancesandEquipmentIndustrialPark,thelanduserighttransferagreementhasbeensignedandthegeneralcontractforconstructionisunderbidding.4.FinancialInvestments
(1)SecuritiesInvestments
√Applicable□Notapplicable
Unit:RMB
| Securitytype | Securitycode | Securityname | Initialinvestmentcost | Measurementmethod | Beginningcarryingamount | Gain/Lossonfair-valuechangesinReportingPeriod | Accumulatedfair-valuechangeschargedtoequity | PurchasedinReportingPeriod | SoldinReportingPeriod | Gain/lossinReportingPeriod | Endingcarryingamount | Accountingtitle | Capitalresource |
| Domestically/Overseaslistedstock | 002915 | ZXFC | 1,459.61 | Fairvaluemethod | 7,988.13 | 0.00 | 0.00 | 0.00 | 8,353.60 | 6,893.99 | 0.00 | Available-for-salefinancialassets | Newstocksubscription |
| Domestically/Overseaslistedstock | 300730 | KCXX | 1,513.16 | Fairvaluemethod | 7,520.55 | 0.00 | 0.00 | 0.00 | 8,282.56 | 6,769.40 | 0.00 | Available-for-salefinancialassets | Newstocksubscription |
| Domestically/Overseaslistedstock | 002920 | DSXW | 12,537.88 | Fairvaluemethod | 24,025.82 | 0.00 | 0.00 | 0.00 | 26,420.42 | 13,882.54 | 0.00 | Available-for-salefinancialassets | Newstocksubscription |
Domestically/Overseaslistedstock
| Domestically/Overseaslistedstock | 002919 | MCJK | 1,406.72 | Fairvaluemethod | 3,949.12 | 0.00 | 0.00 | 0.00 | 4,715.20 | 3,308.48 | 0.00 | Available-for-salefinancialassets | Newstocksubscription |
| Domestically/Overseaslistedstock | 002922 | YGE | 3,462.39 | Fairvaluemethod | 4,985.73 | 0.00 | 0.00 | 0.00 | 9,466.47 | 6,004.08 | 0.00 | Available-for-salefinancialassets | Newstocksubscription |
| Domestically/Overseaslistedstock | 300735 | GHKJ | 5,064.93 | Fairvaluemethod | 7,295.73 | 0.00 | 0.00 | 0.00 | 14,767.84 | 9,702.91 | 0.00 | Available-for-salefinancialassets | Newstocksubscription |
| Domestically/Overseaslistedstock | 300664 | PYHB | 5,026.08 | Fairvaluemethod | 0.00 | 0.00 | 0.00 | 5,026.08 | 13,668.90 | 8,642.82 | 0.00 | Available-for-salefinancialassets | Newstocksubscription |
| Domestically/Overseaslistedstock | 002923 | RDGF | 3,129.84 | Fairvaluemethod | 0.00 | 0.00 | 0.00 | 3,129.84 | 8,780.48 | 5,650.64 | 0.00 | Available-for-salefinancialassets | Newstocksubscription |
| Domestically/Overseaslistedstock | 300684 | ZSKJ | 1,376.00 | Fairvaluemethod | 2,397.68 | 0.00 | 0.00 | 0.00 | 9,683.60 | 8,307.60 | 0.00 | Available-for-salefinancialassets | Newstocksubscription |
| Domestically/Overseaslistedstock | 300733 | XLDL | 5,160.00 | Fairvaluemethod | 0.00 | 0.00 | 0.00 | 5,160.00 | 12,000.00 | 6,840.00 | 0.00 | Available-for-salefinancialassets | Newstocksubscription |
Domestically/Overseaslistedstock
| Domestically/Overseaslistedstock | 002925 | YQKJ | 13,095.00 | Fairvaluemethod | 0.00 | 0.00 | 0.00 | 13,095.00 | 47,724.00 | 34,629.00 | 0.00 | Available-for-salefinancialassets | Newstocksubscription |
| Othersecuritiesinvestmentsheldatperiod-end | 0.00 | -- | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -- | -- | ||
| Total | 53,231.61 | -- | 58,162.76 | 0.00 | 0.00 | 26,410.92 | 163,863.07 | 110,631.46 | 0.00 | -- | -- | ||
| DisclosuredateofannouncementonBoard’sconsentforsecuritiesinvestments | N/A | ||||||||||||
| Disclosuredateofannouncementongeneralmeeting’sconsentforsecuritiesinvestments(ifany) | N/A | ||||||||||||
(2)InvestmentsinDerivativeFinancialInstruments√Applicable□Notapplicable
Unit:RMB’0,000
| Fundingsourceforderivativeinvestment | U.S.dollarfinancings |
| Legalmattersinvolved(ifapplicable) | None |
| Disclosuredateofboardannouncementapprovingderivativeinvestment | 24May2014 |
| Disclosuredateofshareholders’meetingannouncementapprovingderivativeinvestment | 10June2014 |
| AnalysisofrisksandcontrolmeasuresassociatedwithderivativeinvestmentsheldinReportingPeriod(includingbutnotlimitedtomarketrisk,liquidityrisk,creditrisk,operationalrisk,legalrisk,etc.) | Weengageinforwardforextransactionstoreducethecurrencyriskwhensecuringforeign-currencyfinancing.Thisisveryneededinourroutineoperationandisincompliancewiththeapplicablelawsandregulations.WehaveformulatedtheManagementRulesofKonkaGroupCo.,Ltd.forInvestmentInDerivativeFinancialInstruments,makingcleartherelevantconsiderationandapprovalprocedure,riskcontrol,etc..WealwayssignforwardforexcontractswithlargebankssuchastheBankofChina,whichoperatesteadilyandhavegoodcreditstanding,whichcouldhelppreventlossonforwardforexcontractsduetobankfailure. |
| ChangesinmarketpricesorfairvalueofderivativeinvestmentsinReportingPeriod(fairvalueanalysisshouldincludemeasurementmethodandrelatedassumptionsandparameters) | Howweusuallymeasurethefairvalueofderivativefinancialinstruments:BasedontheforwardforexsalesandpurchasecontractsthataresignedbetweentheCompanyandbanksandhavenotexpiredinaReportingPeriod,werecognizethedifferencesbetweenthequotationsforthesecontractsonthebalancesheetdatesprovidedbythebanksandthecontractualpricesastransactionalfinancialassetsorliabilities,andtheprofit/lossonfairvaluechangesisrecognizedaccordingly.Becausethesecontractshavelockedinexchangerates,nochangeswilloccurwhencomparingthefairvalueonsigningdateswiththatondeliverydates. |
MaterialchangesinaccountingpoliciesandspecificaccountingprinciplesadoptedforderivativeinvestmentsinReportingPeriodcomparedtolastreportingperiod
| MaterialchangesinaccountingpoliciesandspecificaccountingprinciplesadoptedforderivativeinvestmentsinReportingPeriodcomparedtolastreportingperiod | Nomaterialchanges |
| Opinionofindependentdirectorsonderivativeinvestmentsandriskcontrol | ItisconsiderednecessaryfortheCompanytolockinforeign-currencyfinancingcoststhroughfinancialinstruments,becauseitcouldeffectivelyreducethecurrencyriskwhensecuringforeign-currencyfinancing.TheCompanyhasformulatedtheinternalcontrolmechanismforinvestmentinderivativefinancialinstruments,andtherelevantriskcontrolmeasuresthattheCompanyhastakenareconsideredeffective. |
Unit:RMB’0,000
| Typeofderivativefinancialinstrument | Beginningcontractualamount | Endingcontractualamount | Gain/lossinReportingPeriod | EndinginvestmentamountasapercentageoftheCompany’sendingnetassetvalue |
| Forwardforexcontract | 224,712.77 | 61,356.18 | 426.21 | 7.57% |
5.UseofFundsRaised□Applicable√NotapplicableNosuchcasesintheReportingPeriodVISaleofMajorAssetsandEquityInterests1.SaleofMajorAssets□Applicable√NotapplicableNosuchcasesintheReportingPeriod.2.SaleofMajorEquityInterests√Applicable□Notapplicable
| Counterparty | Equityinterestssold | Dateofsale | Sellingprice(RMB’0,000) | AmountcontributedbytheequityintereststonetincomeoftheCompanyfromperiod-beginni | EffectofthesaleontheCompany | AmountcontributedbythesaletonetincomeoftheCompanyasapercentageoftheCompany’s | Pricingprinciple | Related-partytransactionornot | RelationshipbetweencounterpartyandtheCompany | Ownershipfullytransferredornot | Executedasscheduledornot,ifnot,statereasonandactionstaken | Disclosuredate | Indextodisclosedinformation |
ngtodateof
sale(RMB’0,000)
| ngtodateofsale(RMB’0,000) | netincome(%) | ||||||||||||
| SuzhouAnzeFuxingVentureCapitalCentre(LimitedPartnership)andGongqingchengLittleCherryInvestmentManagementPartnershipCompany(LimitedPartnership) | 6%interestinShenzhenQianhaiQingsongVentureCapitalFundCompany(LimitedPartnership) | 29March2018 | 3,725 | 0 | OptimizingtheCompany’sallocationofassets,generatingcashinflows,increasingassets’liquidityandimprovingtheCompany’searnings | 2.58% | Marketprice | Not | Notrelated | Yes | N/A | 31March2018 | http://http://www.cninfo.com.cn/new/index/new/index |
| TaizhouOCT | 51%sharesoKunshanKangsheng | 25June2018 | 28,068.03 | -1,997 | 29.19% | Marketprice | Yes | Thesameactualcontroller | Yes | N/A | 16June2018 |
VIIMajorSubsidiaries√Applicable□NotapplicableMajorfully/majority-ownedsubsidiariesandthoseminority-ownedsubsidiarieswithanover10%effectontheCompany’snetprofit
Unit:RMB
Name
| Name | RelationshipwiththeCompany | Principalactivity | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
| AnhuiKonkaTongchuangHouseholdAppliancesCo.,Ltd. | Subsidiary | Productionandsaleofrefrigerators,washingmachinesandotherhouseholdappliances | RMB502000000 | 2,497,405,642.84 | 630,622,484.01 | 2,712,561,615.72 | -35,385,671.10 | 208,631,212.32 |
| AnhuiKonkaElectronicCo.,Ltd. | Subsidiary | Productionandsaleofmultimediaproducts | RMB140000000 | 1,207,383,538.81 | 396,051,806.15 | 2,501,118,245.38 | 24,658,423.92 | 22,638,166.45 |
| ShenzhenKonkaTelecommunicationsTechnologyCo.,Ltd. | Subsidiary | Productionandsaleofmobilecommunicationproducts | RMB400000000 | 527,827,516.87 | 131,429,034.06 | 424,644,976.22 | 7,559,757.66 | 19,885,206.05 |
| HongKongKonkaCo.,Ltd. | Subsidiary | Export&importofelectromechanicalandelectronics | HKD500000 | 2,329,894,580.30 | 220,708,455.97 | 4,690,713,709.84 | 72,716,705.17 | 64,516,609.60 |
| ChainKingdomCo.,Limited | Subsidiary | Supplychainmanagement | USD1500000 | 1,815,415,092.76 | 76,067,650.05 | 9,093,158,938.89 | 52,696,310.44 | 44,048,413.75 |
| EconTechnology(Consolidated) | Subsidiary | Utilities-gasandwater | RMB164000000 | 2,768,488,596.93 | 664,938,910.78 | 1,097,227,129.62 | 170,548,389.06 | 146,768,372.61 |
| E2info | Subsidiary | Internetandrelatedservices | RMB20000000 | 292,174,377.67 | 84,354,433.38 | 219,157,394.91 | 66,848,776.43 | 56,688,972.55 |
| KonkaHuanjia | Subsidiary | Popularityand | RMB180000000 | 794,931,894.26 | 230,701,241.53 | 1,925,972,590.36 | 68,273,527.33 | 50,701,241.53 |
application
oftechnologi
es
| applicationoftechnologies | ||||||||
| JiangxiKonka | Subsidiary | Manufacturingofchemicalrawmaterialsandchemicalproducts | RMB272727273 | 1,628,018,929.61 | 576,797,504.44 | 123,931,769.36 | 18,744,605.94 | 47,958,725.00 |
SubsidiariesobtainedordisposedintheReportingPeriod:
√Applicable□Notapplicable
| Subsidiary | HowsubsidiarywasobtainedordisposedintheReportingPeriod | Effectsonoveralloperationsandoperatingperformance |
| EconTechnology(anditssubsidiaries) | Shareacquisition | MaketheCompanyentertheenvironmentalprotectionfield |
| HenanFrestecRefrigerationApplianceCo.,Ltd. | Shareacquisition | BeneficialtothedevelopmentoftheCompany’shouseholdappliances |
| HenanFrestecHouseholdAppliancesCo.,Ltd. | Shareacquisition | BeneficialtothedevelopmentoftheCompany’shouseholdappliances |
| HenanFrestecElectricalAppliancesCo.,Ltd. | Shareacquisition | BeneficialtothedevelopmentoftheCompany’shouseholdappliances |
| GuangDongXingDaHongYeElectronicCo.,Ltd.(anditssubsidiaries) | Shareacquisition | BeneficialtothedevelopmentoftheCompany’sPCB |
| JiangxiKonkaNewMaterialTechnologyCo.,Ltd.(anditssubsidiaries) | Shareacquisition | MaketheCompanyenterthenewmaterialsfield |
| ChengduKonkaIncubatorManagementCo.,Ltd. | Establishmentbyinvestment | BeneficialtopromotingrapiddevelopmentofrelevantbusinessoftheCompany |
| ChengduAnrenKonkaWenchuangIncubatorManagementCo.,Ltd. | Establishmentbyinvestment | |
| GuiyangKonkaEnterpriseServiceCo.,Ltd | Establishmentbyinvestment | |
| NanjingChuanghuiIntelligentTechnologyCo.,Ltd | Establishmentbyinvestment | |
| GuizhouKonkaEnterprisemanagementServiceCo.,Ltd | Establishmentbyinvestment |
YibinkonkaIncubatorManagementCo.,Ltd.
| YibinkonkaIncubatorManagementCo.,Ltd. | Establishmentbyinvestment |
| ShenzhenKonkaCross-borderKechuangCo.,Ltd | Establishmentbyinvestment |
| JialiInternational(HongKong)Limited | Establishmentbyinvestment |
| SichuanKonkaSmartterminalTechnologyCo.,Ltd | Establishmentbyinvestment |
| AnhuiKonkaElectronicCo.,Ltd. | Establishmentbyinvestment |
| JiaxinTechnologyCo.,Ltd. | Establishmentbyinvestment |
| ShenzhenKonkaYifangTechnologyCo.,Ltd | Establishmentbyinvestment |
| Kangjietong(HongKong)Limited | Establishmentbyinvestment |
| YibinKonkaTechnologyParkOperationCo.,Ltd. | Establishmentbyinvestment |
| SichuanKonkaIndustryNewTownDevelopmentCo.,Ltd | Establishmentbyinvestment |
| KonkaSuiyongInvestment(Shenzhen)Co.,Ltd. | Establishmentbyinvestment |
| HainanKonkaTechnologyIndustryDevelopmentCo.,Ltd | Establishmentbyinvestment |
| ShenzhenKangquanEnterpriseManagementConsultancyCo.,Ltd | Establishmentbyinvestment |
| ShenzhenKonkaElectronicsTechnologyCo.,Ltd. | Establishmentbyinvestment |
| NanjingKonkaIntelligentTechnologyCo.,Ltd | Establishmentbyinvestment |
| AnhuiKonkaZhilianE-commerceCo.,Ltd | Establishmentbyinvestment |
| KonkaHuanjia(Dalian)EnvironmentalTechnologyCo.,Ltd. | Establishmentbyinvestment |
| ShanghaiKonkaIndustryCo.,Ltd | Establishmentbyinvestment |
| ChuzhouKangyongHealthIndustryDevelopmentCo.,Ltd | Establishmentbyinvestment |
| YantaiKonkaIndustryCo.,Ltd | Establishmentbyinvestment |
| YantaikangjinTechnologyDevelopmentCo.,Ltd | Establishmentbyinvestment |
| ShangdongKangxinIndustryDevelopmentCo.,Ltd | Establishmentbyinvestment |
| ShenzhenkangxinweiSemiconductorCo.,Ltd | Establishmentbyinvestment |
| ShenzhenMeixinSemisonductorTechnologyCo.,Ltd | Establishmentbyinvestment |
| HefeikangxinweiStorageTechnologyCo.,Ltd | Establishmentbyinvestment |
ShenzhenNianhuaEnterpriseManagementCo.,Ltd
| ShenzhenNianhuaEnterpriseManagementCo.,Ltd | Establishmentbyinvestment | |
| ShenzhenKonkaEco-developmentInvestmentCo.,Ltd | Establishmentbyinvestment | |
| KonkaRongheIndustryTechnology(Foshan)Co.,Ltd | Establishmentbyinvestment | |
| SuiningKonkaIndustryParkDevelopmentCo.,Ltd | Establishmentbyinvestment | |
| SichuanKangjiatongSupplyChainManagementCo.,Ltd. | Establishmentbyinvestment | |
| ShenzhenKonkaSuyuanInvestmentIndustryCo.,Ltd | Establishmentbyinvestment | |
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | Transferofpartofshares | Bringaboutgainswithcertainamount |
| KunshanKangshengInvestmentDevelopmentCo.,Ltd. | Transferofpartofshares | |
| ShenzhenKonkaSupplyChainManagementHoldingCo.,Ltd. | Cancellation | Nosignificanteffects |
| ShenzhenKonkaPlasticProductsCo.,Ltd. | Cancellation | Nosignificanteffects |
| ChongqingQingjia | RuntianGroupentrustedthe20%votingrightsofChongqingQingjiatoChongqingelectromechanicalHolding(Group)Co.Ltd.formanagement.TheCompanylostthecontrolpoweranditwillnolongerbeincludedintothecombinationscope. | Nosignificanteffects |
Informationaboutmajormajority-andminority-ownedsubsidiaries:
NoneVIIIStructuredBodiesControlledbytheCompany□Applicable√Notapplicable
IX.ProspectoftheCompany’sFutureDevelopmentTheCompanywillcontinuethestrategicorientationof“Science&technology+Industry+Park”in2019andtakereform,transformationandupgradingasthedevelopmentstrategytovigorouslyestablishtheframeworkofconcerteddevelopmentofthefourkeybusinessgroups,proactivelyenhanceR&Dcapabilitiesandinnovationabilities,promotebrandrejuvenation,fullydriveleapingdevelopment,andbuildaplatformcompanydrivenbyscientificandtechnologicalinnovations.TheCompany’sworkplanfor2019isasfollows:
(I)Toproactivelyimplementthestrategyof“Science&technology+Industry+Park”In2019,theCompanywillfurtherreinforcethepromotionandimplementationofthestrategyof“Science&technology+Industry+Park”andestablishasystemfortheimplementationfromtheperspectivesofpolicyculture,businessoperation,systemflowandorganizationstructuretoconvertstrategiesandmeasuresintotangibleactionsandensurethefullimplementationofthestrategicplanning.(II)TopromotethedeepintegrateddevelopmentofemergingindustriesFirst,theCompanywillmaketheemergingindustriesincludingenvironmentalprotection,semiconductorsandnewmaterialsbiggerandstronger,deepenthecomprehensiveorganizationfrombusinessscopeandbusinessplatformtobusinessmode,andgraduallyformstablebusinessscaleandprofits.Second,theCompanywillfurtherenhanceitsmanagementcapabilitiesandlevelforemergingindustries,promotethesynergyofnewindustriesandoriginalindustriesandaccomplishtheall-roundleapingdevelopmentofemergingindustries.(III)TostrengthenR&DinvestmentandconsolidatescientificandtechnologicalinnovationdriverIn2019,theCompanywillfurtherincreaseR&Dinvestment.Whiledoingthat,theCompanywillfocusonthelayoutofcutting-edgetechnologyfieldsincludingMicroLED,newmaterials,theInternetofThingsandsemiconductorstoachievetheinnovationandbreakthroughsinkeytechnologiesanddrivethemacrodevelopmentoftheCompany.Inaddition,theCompanywillproactivelypromotetheeffortsforacademicianandpostdoctoralprogramsandvigorouslyintroducetoptalentsincludingacademiciansandpostdoctoralfellowstomakebreakthroughsinprospectivetechnologiesandmajorinnovationareas.(IV)ToincreasebrandinvestmentandpromotebrandrejuvenationTheCompanywilladoptsystemicplacementstrategiestoincreasebrandinvestmentcontinuouslyandkeepdrivingbrandrejuvenationthroughinnovativemeans.(V)Toenhancecapitaloperationcapabilities
Onthebasisofstrengtheningitsconcentratedmanagementoffunds,proactivelydevelopingfinancingchannelsatlowcosts,optimizingthedebtstructure,vitalizingexcellentassetsandincreasingassetliquidity,theCompanywillreinforcetheresearchonrelevantpolicies,proactivelypromotethecapitalizationofenterpriseswhichhavecompletedthemixedownershipreformandenhanceitscapitaloperationcapabilities.(VI)TofurtherboostthemixedownershipreformIn2019,whileimprovingtheoperationqualityofenterpriseswhichhavecompletedthemixedownershipreform,theCompanywillcontinuetointensifythereformandfullypromotethereforminsubsidiariestorealizethereformcomprehensively.(VII)Majorworkinallbusinessunits1.MultimediabusinessIn2019,theCompanywillcontinuetodeepenreformsinthemultimediabusinesstoachievefastgrowthinthescaleofdomestice-commercebusinessandofoverseasbusiness,andprepareadequatetechnicalandteamreservesforMicroLED,thenew-generationdisplaytechnology.Inaddition,theCompanywillcarryoutintelligentupgradinganddiverseoperationsforitsmultimediamanufacturingbusinesstobuilditselfintoamanufacturerofelectronicproductsincludingcolorTVsetsandproviderofmanufacturingsolutions.2.WhitegoodsbusinessIntermsofthewhitegoodsbusiness,theCompanywillachievesubstantialincreaseinthebusinessscalethroughchannelreforms,excellentprojectsandmarketinginnovationsandstepupeffortstopromotethedeepintegrationofthedualbrandoperationof“Konka+Frestec”toachievethebrandinfluenceof1+1>2.3.EnvironmentalprotectionbusinessIn2019,theCompanywillgiveacomprehensivereviewontheimplementedenvironmentalandnewmaterialenterprisesfrombusinessscopeandbusinessplatformtobusinessmodel,proactivelyboosttheirrapiddevelopmentandrefineandreinforcethelayoutintheenvironmentalandnewmaterialindustriesthroughacombinationofapproaches.Inparticular,theCompanywilladvancethematerialbreakthroughsandimplementationsofglassceramicmaterialsinthefieldofelectronicbusinessapplication,furtherlayingasolidfoundationforsustainablebusinessgrowth.4.SemiconductorbusinessIn2019,theCompanyneedstodeveloptechnologiesandproductrouteswithproprietaryintellectualpropertyrightsforitssemiconductorbusinessandenablethematerialimplementationofrelevantprojectsassoonaspossible.5.MobileInternetbusiness
InrespectofthemobileInternetbusiness,theCompanywillkeepimprovingtheoperationperformancesbyenhancingmanagementabilitiesanddevelopingnewproductsatthemobileterminal.6.ScienceandtechnologyparkbusinessIntermsofthescienceandtechnologyparkbusiness,theCompanywillreviewandestablishtheorganizationstructureofbusinessunits,strengthenthebuildingoftalentechelonsandenhancetheoperationleveltoaccommodatebusinessdevelopment,thusfurtherexpeditingtheexpansionofnewprojectswhileensuringthesmoothpromotionofexistingprojects.7.SupplychainmanagementbusinessIn2019,theCompanywillcontinuetodrivetheupgradingofbusinessmodelsforitssupplychainmanagementbusinesswithagradualshifttowardstheproductionstagewhileachievingthebalanceddevelopmentofallproductlines.Furthermore,theCompanywillfurtherreinforceriskcontrolandforestallvariousrisksduringthebusinessoperationprocessbystandardizingandrefiningdifferentbusinessprocesses.8.InternetbusinessIn2019,theCompanywillreviewanddeterminethestrategicorientationforitsInternetbusiness,promotemultiple-scenariouseroperationsanddiversedevelopmentandmakeholisticbreakthroughsinthebusiness.Inaddition,theCompanywillproactivelypushthecooperationwithAlitowardsagreaterdepthandachievethebreakthroughsincontentandservice.9.InvestmentbusinessIn2019,theCompanywillcontinuetostrengthenindustriallayoutforitsinvestmentbusiness.Inadditiontotheexistingindustries,theCompanywillfocusonthefieldswithstrongsupportfromthestatesuchasstrategicemergingindustriesandonthefieldsthatareabletoformstrategicsynergywiththeCompany’sexistingbusinessesinordertosupporttheleapingdevelopmentoftheCompany;additionally,theCompanywillfurtherintensifypost-investmentmanagement,keepitselfupdatedwiththeoperationstatusofinvesteesandachievethesustainablegrowthofthem.10.VenturecapitalbusinessIntermsoftheventurecapitalbusiness,ononehand,theCompanywillachievethepositiveoperationofimplementedinnovationcentersandpromotetheindustrialsynergywithotherbusinesses;ontheotherhand,theCompanywillstrengthentheexpansion,strivetoimplement3-5newinnovationcentersandincreaseitsindustrialinfluenceinventurecapital.XCommunicationswiththeInvestmentCommunitysuchasResearches,InquiriesandInterviews1.DuringtheReportingPeriod√Applicable□Notapplicable
Date
| Date | Wayof | Typeof | Indextomaininformationcommunicated |
communicatio
n
| communication | communicationparty | |||
| 8June2018 | One-on-onemeeting | Individual | http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcode=000016 | |
| Timesofcommunications | 1 | |||
| Numberofinstitutionscommunicatedwith | 1 | |||
| Numberofindividualscommunicatedwith | 0 | |||
| Numberofothercommunicationparties | 0 | |||
| Tip-offsorleakagesofsubstantialsupposedly-confidentialinformationduringcommunications | None | |||
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(2016-2018),whichwasformulatedin2016.
Specialstatementaboutthecashdividendpolicy
| Specialstatementaboutthecashdividendpolicy | |
| IncompliancewiththeCompany’sArticlesofAssociationandresolutionofgeneralmeeting | Yes |
| Specificandcleardividendstandardandratio | Yes |
| Completedecision-makingprocedureandmechanism | Yes |
| Independentdirectorsfaithfullyperformedtheirdutiesandplayedtheirduerole | Yes |
| Non-controllinginterestsareabletofullyexpresstheiropinionanddesireandtheirlegalrightsandinterestsarefullyprotected | Yes |
| Incaseofadjustingorchangingthecashdividendpolicy,theconditionsandproceduresinvolvedareincompliancewithapplicableregulationsandtransparent | Yes |
Theprofitdistributionstoordinaryshareholders,eitherintheformofcashorstock,inthepastthreeyears(includingtheReportingPeriod)aresummarizedasfollows:
1.DividendPayoutPlanfor2018
Basedonthetotalsharesof2,407,945,408asoftheendof2018,acashdividendofRMB1.00(taxinclusive)per10shareswasplannedtobedistributedtoalltheshareholders,withthetotaldividendpayoutreachingRMB240,794,540.80.Andtheretainedearningsshouldcarryforwardforfuturepayoutwithoutbonusissuefromcapitalreservesandprofit.2.DividendPayoutPlanfor2017Basedonthetotalsharesof2,407,945,408asoftheendof2017,acashdividendofRMB1.62(taxinclusive)per10shareswasdistributedtoalltheshareholders,withthetotaldividendpayoutreachingRMB390,087,156.10.Andtheretainedearningsshouldcarryforwardforfuturepayoutwithoutbonusissuefromcapitalreservesandprofit.3.DividendPayoutPlanfor2016TheauditedundistributedprofitswereRMB-427,163,254.63for2016.InlightoftheCompany’srealitiesandlong-termdevelopmentneeds,theCompanyneitherrecordcapitalreservesnordistributecashdividend,bonusissuefromcapitalreservesandbonusissuefromprofitfortheyear.Cashdividendforordinaryshareholdersinthepastthreeyears(includingtheReportingPeriod)
Unit:RMB
Year
| Year | Cashdividends(taxinclusive)(A) | Netprofitattributabletoordinaryshareholdersofthelistedcompanyinconsolidatedstatementsfortheyear(B) | Aas%ofB(%) | Cashdividendsinotherforms(suchassharerepurchase)(C) | Cas%ofB(%) | Totalcashdividends(includingthoseinotherforms)(D) | Das%ofB(%) |
| 2018 | 240,794,540.80 | 411,289,744.68 | 58.55% | 0.00 | 0.00% | 240,794,540.80 | 58.55% |
| 2017 | 390,087,156.10 | 5,057,025,155.71 | 7.71% | 0.00 | 0.00% | 390,087,156.10 | 7.71% |
| 2016 | 0 | 95,673,028.03 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00% |
IndicatebytickmarkwhethertheCompanyfailstoputforwardacashdividendproposalfortheordinaryshareholdersdespitethefactsthattheCompanyhasmadeprofitsintheReportingPeriodandtheprofitsoftheCompanyastheparentdistributabletotheordinaryshareholdersarepositive.□Applicable√Notapplicable
IIFinalDividendPlanfortheReportingPeriod√Applicable□Notapplicable
Sharedividendper10sharesfromretainedearnings(share)
| Sharedividendper10sharesfromretainedearnings(share) | 0 |
| Cashdividendper10shares(RMB)(taxinclusive) | 1.00 |
| Sharedividendper10sharesfromcapitalreserves(share) | 0 |
| Sharebase(share) | 2,407,945,408 |
| Totalcashdividends(RMB)(taxinclusive) | 240,794,540.80 |
| Cashdividendsinotherways(suchassharerepurchase)(RMB) | 0.00 |
| Totalcashdividends(includingotherways)(RMB) | 240,794,540.80 |
| Distributableprofits(RMB) | 411,289,744.68 |
| Cashdividendsasapercentageoftotalprofitstobedistributed(%) | 100% |
| DetailsofcashdividendfortheReportingPeriod | |
| Detailsofplanforprofitdistributionorbonusissuefromcapitalreserves | |
| TheauditednetprofitattributabletoownersoftheCompanyastheparentin2018wasRMB411,289,744.68,retainedearningswereRMB4,271,408,192.21.Inaccordancewithrelevantlawsandregulations,provisionsofArticlesofAssociationsanddemandoftheCompanyforsustainabledevelopment,theprofitdistributionplanwassupposedtobeasfollows:basedonthetotalsharesof2,407,945,408asoftheendof2018,acashdividendofRMB1.00(taxinclusive)per10shareswasdistributedtoalltheshareholders,withthetotaldividendpayoutexpectedreachingRMB240,794,540.80.Andtheretainedearningsshouldcarryforwardforfuturepayoutwithoutbonusissuefromcapitalreservesandprofit. | |
IIIFulfillmentofCommitments1.CommitmentsoftheCompany’sActualController,Shareholders,RelatedPartiesandAcquirers,aswellastheCompanyItselfandotherEntitiesFulfilledintheReportingPeriodorOngoingatthePeriod-end□Applicable√NotapplicableNosuchcasesintheReportingPeriod.2.WheretherehadanearningsforecastforanassetorprojectandtheReportingPeriodwasstillwithintheforecastperiod,explainwhytheforecasthasbeenreachedfortheReportingPeriod.□Applicable√NotapplicableIVOccupationoftheCompany’sCapitalbytheControllingShareholderorItsRelatedPartiesforNon-OperatingPurposes□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.VExplanationsGivenbytheBoardofDirectors,theSupervisoryBoardandtheIndependentDirectors(ifany)RegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsoftheReportingPeriod□Applicable√NotapplicableVIYoYChangestoAccountingPolicies,EstimatesandMethods√Applicable□NotapplicableOn31March2017,theMinistryofFinancerevisedandreleasedtheaccountingstandardsrelatedtofinancialinstruments,includingASBENo.22-RecognitionandMeasurementofFinancialInstruments,ASBENo.23-TransferofFinancialAssets,ASBENo.24-HedgeAccounting.On2May2017,itrevisedandissuedASBENo.37–PresentationofFinancialInstruments.Theabovefourfinancialinstruments(collectivelyreferredtoas“NewFinancialInstrumentsStandards”)requiretobeimplementedbyvariouslistedcompaniesinChinafrom1January2019on.Inaddition,theMinistryofFinanceissuedtheNoticeonPrintingandDistributingthe2018AnnualFinancialStatementsofGeneralEnterpriseson15June2018(NO.CK[2018]15),indicatingthatvariousenterprisesimplementingASBEneedtopreparetheirfinancialstatementsinaccordancewiththesestandards.Afterthischange,theCompanyshallformulatethefinancialstatementsaccordingtoTheFormatofFinancialStatementsofGeneralEnterprises(NO.CK[2018]15)from1July2018to1January2019(appliedtoenterprisesthathavenotyetimplementednewfinancialstandardsandnewincomestandards).Thischangeinaccountingpolicyonlyaffectsthefinancialstatementformatandpresentationofreportitems,andwillnothaveasignificantimpactontheCompany’s2018financialposition,operatingresultsandcashflow.From1January2019,theCompanywillstarttoimplementnewfinancialinstrumentsstandardsandformulatethefinancialstatementsaccordingtoTheFormatofFinancialStatementsofGeneralEnterprises(appliedtoenterprisesthathaveimplementednewfinancialstandardsandnewincomestandards).Accordingtonewfinancialinstrumentstandards,theCompanyregardsthe“businessmodel”offinancialassetsheldbytheenterprisesandthe“cashflowcharacteristicsoffinancialassetscontracts”asthebasisforjudging,classifyingandmeasuringfinancialinstruments(includingimpairment),andtheaccountingtreatmentgearedtothefinancialassetsimpairmentshallbechangedfromthe“incurredlossmethod”tothe“expectedlossmethod”.Thedifferencebetweentheoriginalbookvalueofthefinancialinstrumentandthenewbookvalueonthedateofimplementationofthestandardisincludedintheretainedearningsatthebeginningof2019orothercomprehensiveincomes.Meanwhile,theformatofthecompany’sfinancialstatementswasadjustedaccordingtoTheFormatofFinancialStatementsofGeneralEnterprises(No.CK[2018]15)(appliedtoenterprisesthathaveimplementednewfinancialstandardsandnewincomestandards).
ThechangeinaboveaccountingpolicywillnothavesignificantimpactontheCompany’sfinancialsituation,operatingresultsandcashflow.VIIRetrospectiveRestatementsduetoCorrectionofMaterialAccountingErrorsintheReportingPeriod□Applicable√NotapplicableNosuchcasesintheReportingPeriod.VIIIYoYChangestotheScopeoftheConsolidatedFinancialStatements√Applicable□NotapplicableRefertoPartIV-II-2-(6)fordetails.IXEngagementandDisengagementofIndependentAuditorCurrentindependentauditor:
Nameofthedomesticindependentauditor
| Nameofthedomesticindependentauditor | RuihuaCertifiedPublicAccountantsLLP |
| TheCompany’spaymenttothedomesticindependentauditor(RMB’0,000) | 254.4 |
| HowmanyconsecutiveyearsthedomesticindependentauditorhasprovidedauditservicefortheCompany | Sixyears |
| Namesofthecertifiedpublicaccountantsfromthedomesticindependentauditorwritingsignaturesontheauditor’sreport | LiuJianhuaandShenLingzhi |
| HowmanyconsecutiveyearsthecertifiedpublicaccountantshaveprovidedauditservicefortheCompany | Fouryears |
| Nameoftheoverseasindependentauditor(ifany) | N/A |
| HowmanyconsecutiveyearstheoverseasindependentauditorhasprovidedauditservicefortheCompany(ifany) | N/A |
| Namesofthecertifiedpublicaccountantsfromtheoverseasindependentauditorwritingsignaturesontheauditor’sreport(ifany) | N/A |
| HowmanyconsecutiveyearsthecertifiedpublicaccountantshaveprovidedauditservicefortheCompany(ifany) | N/A |
IndicatebytickmarkwhethertheindependentauditorwaschangedfortheReportingPeriod□Yes√NoIndependentauditor,financialadvisororsponsorengagedfortheauditofinternalcontrols□Applicable√NotapplicableXPossibilityofListingSuspensionorTerminationafterDisclosureofthisReport□Applicable√NotapplicableXIInsolvencyandReorganization□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
XIIMajorLegalMatters√Applicable□Notapplicable
Generalinformation
| Generalinformation | Involvedamount(RMB’0,000) | Provision | Progress | Decisionsandeffects | Executionofdecisions | Disclosuredate | Indextodisclosedinformation |
| Asforthedetails,pleaserefertotheNotes2.DescriptionoftheContingenciesoftheCommitmentsandtheContingenciesofChapterXIIoftheNotestotheFinancialReport | |||||||
XIIIPunishmentsandRectifications□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XIVCreditQualityoftheCompanyaswellasItsControllingShareholderandActualController□Applicable√NotapplicableXVEquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployees□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XVIMajorRelated-PartyTransactions1.ContinuingRelated-PartyTransactions√Applicable□Notapplicable
| 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 | 2,390.81 | 0.28% | 2,500 | Not | Cash | N/A | 31March2018 | http://www.cninfo.com.cn/new/index |
| OCTEnterprisesCo., | Underthesame | Salesofgoods | SalesofLCD | Negotiated | Marketprice | 1,459.22 | 0.15% | 3,000 | Not | Cash | N/A | 31March |
Ltdanditssubsidiaries
| Ltdanditssubsidiaries | actualcontroller | andservices | price | 2018 | |||||||||
| Total | -- | -- | 3,850.03 | -- | 5,500 | -- | -- | -- | -- | -- | |||
| Large-amountsalesreturnindetail | N/A | ||||||||||||
| GivetheactualsituationintheReportingPeriod(ifany)whereanestimatehadbeenmadeforthetotalvalueofcontinuingrelated-partytransactionsbytypetooccurintheReportingPeriod | TheCompanyhaspublishedtheForecastingPublicNoticeonRoutineRelated-partyTransactionforY2018onSecuritiesTimes,ShanghaiSecuritiesNews,ChinaSecuritiesJournalandHongKongTaKungPaoaswellastheInternetwebsitedesignatedbyCSRChttp://http://www.cninfo.com.cn/new/indexon31March2018.IntheReportingPeriod,thebasisforpricing,transactionprice,transactionamountandsettlementmethodsofrawmaterialspurchasedbytheCompanywerebasicallyinaccordancewiththeforecast.ThetotalamountwasRMB38.5003million. | ||||||||||||
| Reasonforanysignificantdifferencebetweenthetransactionpriceandthemarketreferenceprice(ifapplicable) | N/A | ||||||||||||
2.Related-PartyTransactionsRegardingPurchaseorSalesofAssetsorEquityInterests√Applicable□NotapplicableForthespecificcontent,pleaserefertotherelevantcontentof"5.Othermaterialrelatedtransactions"inthissection3.RelatedTransactionsRegardingJointInvestmentsinThirdParties√Applicable□NotapplicableForthespecificcontent,pleaserefertotherelevantcontentof"5.Othermaterialrelatedtransactions"inthissection4.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) |
| None | None | None | Not | 0 | 0 | 0 | 0 | 0 | 0 |
EffectsofcreditswithrelatedpartiesontheCompany’soperatingresultsandfinancialconditions
| EffectsofcreditswithrelatedpartiesontheCompany’soperatingresultsandfinancialconditions | None |
Liabilitiespayablewithrelatedparties:
| Relatedparty | Relatedrelationship | Formingreason | Beginningbalance(RMB’0,000) | IncreasedintheReportingPeriod(RMB’0,000) | RecoveredintheReportingPeriod(RMB’0,000) | Interestrate | InterestintheReportingPeriod(RMB’0,000) | Endingbalance(RMB’0,000) |
| OCTEnterprisesCo.,Ltd. | Controllingshareholder | TheCompanyappliesentrustedloantoit | 0 | 50,000 | 50,000 | 4.35% | 151 | - |
| 0 | 50,000 | 50,000 | 6.00% | 1,487 | - | |||
| 0 | 27,656 | - | 5.00% | 42 | 27,656 | |||
| 0 | 50,000 | - | 5.00% | 76 | 50,000 | |||
| 0 | 50,000 | - | 5.00% | 104 | 50,000 | |||
| 0 | 140,000 | - | 6.00% | 5,413 | 140,000 | |||
| 0 | 10,000 | - | 5.40% | 302 | 10,000 | |||
| 0 | 48,000 | - | 6.00% | 1,328 | 48,000 | |||
| 0 | 100,000 | - | 6.00% | 1,233 | 100,000 | |||
| 0 | 2,000 | - | 5.60% | 52 | 2,000 | |||
| 0 | 50,000 | 50,000 | 3.05% | 513 | - | |||
| EffectsofliabilitieswithrelatedpartiesontheCompany’soperatingresultsandfinancialconditions | TheCompanyappliesentrustedloanfromOCTEnterprisesCo.,Ltd.whichmeetstheneedsofthecompany'sexistingbusinessdevelopmentandreducesthefinancingcost. | |||||||
5.OtherMajorRelated-PartyTransactions√Applicable□Notapplicable(1)TheProjectofCapitalIncreasetoYibinOCTSanjiangRealEstateCo.,Ltd.:On3May2018,the1
st
ExtraordinaryGeneralMeetingof2018passedtheProposalonCapitalIncreasetoYibinOCTSanjiangRealEstateCo.,Ltd.byvoting,anddecidedtotakeShenzhenKonkaTelecommunicationsTechnologyCo.,Ltd.,awholly-ownedsubsidiaryasthemainbodytocontributeRMB80milliontoincreasecapitaltoYibinOCTSanjiangRealEstateCo.,Ltd.accordingtoshareholdingratio.Atpresent,ShenzhenKonkaTelecommunicationsTechnologyCo.,Ltd.hascompletedthecapitalincreaseinYibinOCTSanjiangRealEstateCo.,Ltd.(2)TheProjectofTransferringEquityofKunshanKangshengInvestmentDevelopmentCo.,Ltd.:
On14June2018,the44
th
Meetingofthe8
th
BoardofDirectorsoftheCompanydeliberatedandpassedProposalonTransferring51%EquityofKunshanKangshengInvestmentDevelopmentCo.,
anddecidedthattheCompanytransferred51%equityofKunshanKangshengInvestmentDevelopmentCo.,Ltd.toTaizhouOverseasChineseTownCo.,Ltd.,withthetransferpriceofRMB280,680,300.Atpresent,theCompanyhasreceivedtheequitytransferfundfromTaizhouOverseasChineseTownCo.,Ltd.,andKunshanKangshengInvestmentDevelopmentCo.,Ltd.hascompletedindustrialandcommercialregistrationofchanges.(3)Venturecapitalplatformserviceproject:KonkaVenturesDevelopment(Shenzhen)Co.,Ltd.,asubsidiaryoftheCompanyenteredintoanagreementwithOCTGrouptoprovideventurecapitalplatformservicesforit.OCTGrouphaspaidaservicefeeofRMB20milliontoKonkaVenturesDevelopment(Shenzhen)Co.,Ltd.DuringtheReportingPeriod,KonkaVenturesDevelopment(Shenzhen)Co.,Ltd.recognizedrevenueofRMB19.4175million.(4)ProvidedfinancialaidstoSanjiangGroup:OnSeptember18,2018,theProposalontheProvisionofFinancialAidstoYibinOCTSanjiangGroupwasdeliberatedandapprovedattheCompany’s49
th
MeetingoftheEighthSessionoftheBoardofDirectors.Accordingtotheproposal,ShenzhenKonkaCommunicationsScienceandTechnologyCo.,Ltd.,awholly-ownedsubsidiaryoftheCompanyandtheothershareholdersofYibinOCTSanjiangGroupwouldprovidefinancialaidstoYibinOCTSanjiangGroupintheirshareholdingproportion.Sofar,ShenzhenKonkaCommunicationsScienceandTechnologyCo.,Ltd.hasprovidedaborrowingofRMB100millioninitsshareholdingproportion.Indextothepublicannouncementsaboutthesaidrelated-partytransactionsdisclosed
Titleofpublicannouncement
| Titleofpublicannouncement | Disclosuredate | Disclosurewebsite |
| AnnouncementonCapitalIncreaseinSanjiangRealEstateandRelated-partyTransactions | 18April2018 | http://http://www.cninfo.com.cn/new/index |
| AnnouncementontheTransferof51%EquitiesofKunshanKangshengandRelated-partyTransactions | 16June2018 | |
| AnnouncementontheProgressoftheTransferof51%EquitiesofKunshanKangsheng | 3July2018 | |
| AnnouncementonOfferingFinancialAidtoSanjiangRealEstateandRelated-partyTransactions | 19September2018 | |
| AnnouncementonProvidingGuaranteeLineforJoint-stockCompanyandRelated-partyTransactions | 19September2018 |
XVIIMajorContractsandExecutionthereof1.Entrustment,ContractingandLeases
(1)Entrustment
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(2)Contracting
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
(3)Leases
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.2.Majorguarantees√Applicable□Notapplicable
(1)Guarantees
Unit:RMB'0,000
GuaranteesprovidedbytheCompanyanditssubsidiariesforexternalparties(exclusiveofthoseforsubsidiaries)
| GuaranteesprovidedbytheCompanyanditssubsidiariesforexternalparties(exclusiveofthoseforsubsidiaries) | ||||||||||
| Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate(dateofagreementsigning) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot | ||
| JiangxiXinxinJiananEngineeringCo.,Ltd. | 10,000 | 12December2016 | 10,000 | Joint-liability | TWOyears | Not | Not | |||
| JiangxiZhongyiDecorationMaterialsCo.,Ltd. | 10,000 | 12December2016 | 10,000 | Joint-liability | TWOyears | Not | Not | |||
| JiangxiShanshiTechnologicalDevelopmentCo.,Ltd. | 10,000 | 12December2016 | 10,000 | Joint-liability | TWOyears | Not | Not | |||
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(A1) | 177,500 | TotalactualamountofsuchguaranteesintheReportingPeriod(A2) | 0 | |||||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(A3) | 207,500 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(A4) | 30,000 | |||||||
| GuaranteesprovidedbetweentheCompanyandsubsidiaries | ||||||||||
| Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate(dateofagreementsigning) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedparty | ||
ornot
| ornot | |||||||||||
| AnhuiTongchuang | 31March2017and31March2018 | 90,000 | 7November2018 | 5,800 | Joint-liability | Oneyear | Not | Not | |||
| 9May2018 | 4,500 | Joint-liability | Oneyear | Not | Not | ||||||
| 20September2018 | 5,500 | Joint-liability | Oneyear | Not | Not | ||||||
| 19June2018 | 3,000 | Joint-liability | Oneyear | Not | Not | ||||||
| Communicationtechnology | 50,000 | 5February2018 | 50,000 | Joint-liability | Oneyear | Not | Not | ||||
| AnhuiKonka | 110,000 | 2May2018 | 20,000 | Joint-liability | Oneyear | Not | Not | ||||
| 1June2018 | 8,000 | Joint-liability | Oneyear | Not | Not | ||||||
| 6December2018 | 10,000 | Joint-liability | Oneyear | Not | Not | ||||||
| E-display | 8,000 | 29November2018 | 2,000 | Joint-liability | Oneyear | Not | Not | ||||
| HongKongKonka | 365,258 | 31May2018 | 20,807 | Joint-liability | Oneyear | Not | Not | ||||
| 25July2018 | 2,427 | Joint-liability | Oneyear | Not | Not | ||||||
| 7August2018 | 10,403 | Joint-liability | Oneyear | Not | Not | ||||||
| KonkaFactoring | 300,000 | 29September2018 | 20,000 | Joint-liability | Oneyear | Not | Not | ||||
| 27June2018 | 14,000 | Joint-liability | Oneyear | Not | Not | ||||||
| XingDaHongYe | 19September2018 | 10,000 | 21November2018 | 5,800 | Joint-liability | Twoyears | Not | Not | |||
| EconTechnology | 19September2018 | 120,000 | 10October2018 | 3,135 | Joint-liability | Oneyear | Not | Not | |||
| KonkaMaterial | 31October2018 | 60,000 | 4December2018 | 10,000 | Joint-liability | Oneyear | Not | Not | |||
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(B1) | 993,686 | TotalactualamountofsuchguaranteesintheReportingPeriod(B2) | 195,372 | ||||||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(B3) | 1,903,486 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(B4) | 195,372 | ||||||||
Compoundguarantees:
None(2)IrregularitiesinProvisionofGuarantees□Applicable√Notapplicable
Guaranteesprovidedbetweensubsidiaries
| Guaranteesprovidedbetweensubsidiaries | ||||||||||||
| Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate(dateofagreementsigning) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot | ||||
| SichuanKonka | 14,000 | 28May2018 | 14,000 | Joint-liability | Sevenyears | Not | Not | |||||
| RushanEcon | 29,000 | 29December2016 | 29,000 | Joint-liability | Tenyears | Not | Not | |||||
| KangzhiTrade | 43,300 | 12December2018 | 43,300 | Joint-liability | Not | Not | ||||||
| XingDaHongYe | 1,000 | 13November2018 | 1,000 | Joint-liability | Twoyears | Not | Not | |||||
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(C1) | 58,300 | TotalactualamountofsuchguaranteesintheReportingPeriod(C2) | 58,300 | |||||||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(C3) | 87,300 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(C4) | 87,300 | |||||||||
| Totalguaranteeamount(totalofthethreekindsofguaranteesabove) | ||||||||||||
| TotalguaranteelineapprovedintheReportingPeriod(A1+B1+C1) | 1,229,486 | TotalactualguaranteeamountintheReportingPeriod(A2+B2+C2) | 253,672 | |||||||||
| TotalapprovedguaranteelineattheendoftheReportingPeriod(A3+B3+C3) | 2,198,286 | TotalactualguaranteebalanceattheendoftheReportingPeriod(A4+B4+C4) | 312,672 | |||||||||
| Totalactualguaranteeamount(A4+B4+C4)as%oftheCompany’snetassets | 38.58% | |||||||||||
| Ofwhich: | ||||||||||||
| Balanceofguaranteesprovidedforshareholders,actualcontrollerandtheirrelatedparties(D) | 0 | |||||||||||
| Balanceofdebtguaranteesprovideddirectlyorindirectlyforobligorswithanover70%debt/assetratio(E) | 312,672 | |||||||||||
| Amountbywhichthetotalguaranteeamountexceeds50%oftheCompany’snetassets(F) | 0 | |||||||||||
| Totalofthethreeamountsabove(D+E+F) | 312,672 | |||||||||||
| JointresponsibilitiespossiblyborneintheReportingPeriodforundueguarantees(ifany) | N/A | |||||||||||
| Provisionofexternalguaranteesinbreachoftheprescribedprocedures(ifany) | N/A | |||||||||||
NosuchcasesintheReportingPeriod.3.CashEntrustedtoOtherEntitiesforManagement(1)CashEntrustedforWealthManagement√Applicable□NotapplicableOverviewofcashentrustedforwealthmanagement
Unit:RMB’0,000
Type
| Type | Capitalresource | Amount | Outstandingbalance | Overdueamount |
| Trustedfinancialproducts | Self-ownedfunds | 3,000 | 3,000 | 0 |
| Total | 3,000 | 3,000 | 0 | |
High-riskentrustedassetmanagementwithsignificantsingleamountorlowsecurity,poorliquidityandnocapitalpreservation:
□Applicable√NotapplicableWhetherthereisthecasewheretheprincipalcannotberecoveredatmaturityorothercasewhichmaycauseimpairmentforentrustedassetmanagement□Applicable√Notapplicable
(2)EntrustedLoans
√Applicable□NotapplicableOverviewofentrustedloans
Unit:RMB'0,000
| Totalamount | Capitalresource | Outstandingamount | Overdueamount |
| 2,000 | Self-ownedfunds | 2,000 | 0 |
High-riskentrustedloanswithsignificantsingleamountorlowsecurity,poorliquidityandnocapitalpreservation:
□Applicable√NotapplicableWhetherthereisthecasewheretheprincipalcannotberecoveredatmaturityorothercasewhichmaycauseimpairmentforentrustedloans□Applicable√Notapplicable4.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.TheCompanyisinsistingphilosophyofcustomerorientationtostrengthencustomerservicemanagement,serviceconsciousnessforemployees,servicelevelsandtoprotectrightsforcustomers.Throughcustomerservicehot-line,fieldvisitandfollow-upservice,theCompanyhassetagoodcorporateimageforcustomers.
(2)Behonesttosuppliers
Followingtheprincipleofintegrityandmutuallybeneficialcooperation,theCompanykeepsgoodcooperativerelationswithsuppliersateachlevel.Thecorporateprincipleisopen,fairandimpartialtostandardizeprocurement,protectsuppliers’legalrightsandlaysolidfoundationforfurthercooperation.3.BeenthusiastictosocialandpublicwelfareundertakingsBasedontheprincipleofappreciatingandrepayingthesociety,theCompanyhasparticipatedinallkindsofactivitiesforpublicwelfare,cooperatedwithsociety,undertakensocialresponsibilitiesactivelyandpromotedharmoniousdevelopmentbetweenenterpriseandsociety.4.BeresponsibleforemployeesTheCompanyinsiststheprincipleofpeopleorientationtoimproveworkingenvironment,promoteoccupationalskills,provideopportunityandplatformfordevelopmentandgrowthandencourage
selfupgradationandrealizationforemployees.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.Ontheotherhand,theCompanywouldestablishmethodsofself-trainingplatform,traininginstructor,themetrainingandlecturestoprovidecolorfultrainingactivities.Besidesthework,professionalandcomprehensivequalitywouldbefullypromoted.5.BeresponsibleforenvironmentThecompanypayscloseattentiontothechangesoftheecologicalenvironmentandthecloserelationshipbetweenitselfandtheenvironment.Throughtechnologicalinnovation,itcreatesalow-carboneconomy,fromgreenmanufacturingtogreenproductstogreenindustrialcirculareconomy.Thecompanyhopestocontributetotheprotectionoftheearth'secologicalenvironment.Inthenewyear,theCompanywouldundertakeallsocialresponsibilitiesbyimprovingstrategicmanagement,sustainabledevelopmentandenterpriseeconomicefficiency.Itwouldreattributeallshareholdersandwouldprotectlegalrightsforcreditorsandemployees.Tobehonesttosuppliersandcustomers,theCompanywouldservelocaleconomicdevelopmentandparticipateinsocialpublicwelfareactivitiesandenvironmentprotection.Itwouldundertakeallresponsibilitiesinmanyfieldsandmakeattributionstosocial,economic,andenvironmentalsustainabledevelopmentforasocialismharmonioussociety.
2.MeasuresTakenforTargetedPovertyAlleviation(1)PlansInaccordancewiththeguidingprinciplesofthestateonthedevelopmentofprecisionpovertyalleviation,theCompanyhasproactivelycarriedoutcriticalworkonpovertyalleviationandengagedinthetargetedsupportinSansuiCountyandTianzhuCountyinGuizhouProvince.TheCompanyandtheChinaYouthDevelopmentFoundation(CYDF)havejointlyheldthelargepublicbenefitactivity“HeartJourney”since2013.Fivesessionsofactivitieshavebeenhelduntilnow.In2013,wehelpedthousandsofmigrantworkerstogohome.In2014,weplantedtensofthousandsoftreesnationwideandimprovedthelivingconditionsof5,000needyfamiliesbyplantingtheeconomicandecologicaltrees.In2015,wedonatednearly100musicclassroomstotheremoteregionsofChinabycarryingout“HappyMusicClassroom”ProjectwithCYDF.In2016,wesponsoredtheprofessionaltrainingof100musicteachersinremoteareastopromotetheconstructionofteachingstaffinpoverty-strickenareas.In2017,theactivitiesof“HeartJourney”focusedonaffectionatecareforfamiliesofleft-behindchildreninpoverty-strickenareas.Wehelped100left-behindchildrentocometocitiestoreunitewiththeirparentsduringthesummervacation,anddonatedhousesnamedKonkaHeartJourneyFamilyinschoolsinwesternareas.(2)SummaryoftheRelatedWorkDoneintheReportingPeriodDuringtheReportingPeriod,theCompanytookactivestepstohelpSansuiCountytocarryoutthemarketingworkinrespectofSansuiducks,includingproductsalesandpackageplanning,whicheffectivelydrovethesalesoflocalsubsidiaryagriculturalproducts.In2018,LiuFengxi,BoardChairmanoftheCompany,ledateamtoSansuiandTianzhuforsiteinvestigationsandproposednewnotionsforindustrialpovertyalleviation,layingasolidfoundationforthetargetedpovertyalleviationin2019.
(3)SubsequentPlans
Tofullyperformitsdutiesoftargetedpovertyalleviation,in2019,theCompanyplanstodonateofficesuppliesofapproximatelyRMB300,000,includingtelevisionsetsandbookstothetwocounties,togetherwiththeworkonpublicbrandestablishmentofnomorethanRMB1.58millionwhichwillbeusedforthepackageplanningandadvertisementpromotionofSansuiducksofSansuiCounty.Additionally,theCompanyplanstocontinuecarryingoutthelargecommonwealeventthemedwith“TheTripofHeart”.3.IssuesRelatedtoEnvironmentalProtectionIndicatebytickmarkwhethertheCompanyoranyofitssubsidiariesisidentifiedasamajorpolluterbytheenvironmentalprotectionauthorities.Yes
Nameofpolluter
| Nameofpolluter | Nameofmajor | Wayofdischarge | Numberofdischarge | Distributionofdischarge | Dischargeconcentration | Dischargestandardsimplemented | Totaldischarge | Approvedtotaldischarge | Excessivedischar |
pollutants
| pollutants | outlets | outlets | ge | ||||||
| XingDaHongYe | Pollutionsourcesofwastewater:PH、copper、COD、ammonianitrogen、totalnitrogen、totalphosphorus | Dischargeofstationarypollutionsources | 1 | Maindischargeoutletofthewastewaterstation | PH6-9；copper≤0.5mg/L；COD≤80mg/L；ammonianitrogen≤15mg/L；totalnitrogen≤20mg/L；totalphosphorus≤1mg/L | ElectroplatingwaterpollutantdischargestandardDB44/1597-2015Table1 | 44.8milliontons/year | Totaldischarge448,500tons/year;pollutantCOD24.891tons/year;ammonianitrogen3.982tons/year;totalnitrogen9.373tons/year;totalphosphorus0.439tons/year | None |
| wastegaspollutants:sulfuricacidfume,hydrogenchloride,formaldehyde,hydrogencyanide,nitrogenoxide,ammonia,benzene,methylbenzene,TVOC,tinanditscompounds,PM(dust),oilfume | Dischargeofstationarypollutionsources | 14 | Threeontheroofofoneplant,tenontheroofoftwoplantsandoneontheroofofthecanteen | 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； | EmissionStandardforElectroplatingPollutantsGB21900-2008AirEmissionLimitsTable5,GuangdongAirPollutantEmissionStandardDB44/27-2001theSecondLevelStandardintheSecondPeriod,EmissionstandardforOdorPollutants(GB14554-1993)Table2Standard,Emissionstandardofcookingfume(GB18483-2001) | 2,986,560,000standardcube/year | 2,986,560,000standardcube/year(note:thetotaldischargeisnotstatedinthelatestversionofnationaldischargepermitin2018;twoexhausttowerswereaddedin2018;calculatedbasedonairvolumeinenvironmentalimpactassessment) | None |
(1)Theconstructionofanti-pollutionfacilitiesanditsoperationsituationAllproductionequipmentofGuangdongXingdaHongyeElectronicsCo.,Ltd.hasbeensetupwithsupportingenvironmentalprotectionfacilitiesaccordingtotherequirementsofenvironmentalimpactassessment.Thedischargeofwastewater,wastegasandnoiseaswellasthedisposalofallsolidwastesintheCompanyallmetthestandardsduringtheReportingPeriod.ThesewagetreatmentcentreofGuangdongXingdaHongyeElectronicsCo.,Ltd.withaninvestmentofaboutRMB15millionwasformallyputintoproductioninJune2007,andthetreatmentcapacityofthesewagetreatmentfacilitywas2,566tons/day.Aftertechnicalimprovementandexpansion,thecapacityincreasedto2,900tons/daywiththetreatmentprocessremaining
unchanged.Currently,thesewagetreatmentfacilitiesarefunctioningwellandthemainpollutantdischargemeetsthedischargestandardsandenvironmentalassessmentstandards.ThepollutantsaredischargedtoFushachongafterbeingtreatedattheself-builtsewagetreatmentstation.(2)EnvironmentalimpactassessmentandotherenvironmentalprotectionadministrativelicensesoftheconstructionprojectGuangdongXingdaHongyeElectronicsCo.,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.OnDecember31,2012,itobtainedtheapprovaldocumenttitledReplytotheReportontheEnvironmentalImpactoftheTechnicalImprovementandExpansionProjectofGuangdongXingdaHongyeElectronicsCo.,Ltd.(ZHJS(2012)No.115)fromZhongshanEnvironmentalProtectionBureau.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.ThecommissioningwascarriedoutfromFebruary10,2018toJuly8,2018.Theconstructionoftheprojectcompliedwiththerequirementsforenvironmentalimpactassessmentandmetthecriteriafortheacceptanceofenvironmentalprotectionforthecompletionofconstructionprojects.In2018,theCompanyobtainedthestatesewagepermit,certificateNo.:91442000768405216J001P.(3)ContingencyplanforemergentenvironmentalincidentInstrictaccordancewithrequirementsoflaws,regulationsandrelevantdocuments,suchasLawofthePeople’sRepublicofChinaonEmergencyResponseandInterimMeasuresonEnvironmentalEmergencyResponsePlan,GuangdongXingdaHongyeElectronicsCo.,Ltd.hasestablishedrisk
preventionmeasuresandemergencyresponseplans,keptitsemergencyequipmentinanormalstate,formulatedtheContingencyPlanforEmergentEnvironmentalIncident,andputonrecordsatZhongshanEnvironmentalProtectionBureau,GuangdongProvince,recordNo.:4420002017044M.Inaddition,theCompanyconductsadrillofmajorenvironmentalpollutionincidentonitsfactorytoenhanceitsemergencyresponsecapabilitiesforemergentenvironmentalpollutionincidents.Furthermore,GuangdongXingdaHongyeElectronicsCo.,Ltd.hasbuiltanemergencypool(whichisthecomprehensivewatertankinthesewagetreatmentstationcoveringanareaof800m
)andsetupafirepool(500m
andlocatedonFloor1ofFactoryBuildingNo.2),whichserveastemporarystoragepoolsforexteriordrainageorfiredrainagetoeradicateaccidentaldischargeofwastewaterinthecaseoffailedoperationofthesewagetransmissionpipelineorfireaccidentduetooutageorotherspecialcircumstances.Thesewagetransmissionpipelinehasbeenequippedwithanti-corrosionandcathodicprotectionusinganti-corrosionpipesandcarbonsteelpipes.Pursuanttothenewdischargestandards,therelateddischargepipelinehasbeenmodifiedandtheproductiondepartmenthasbeenrequiredtodischargestrictlyinaccordancewithdischargestandardstocutthecostsofwastewatertreatment.Differenttypesofwastewaterarenormallyandproperlytreatedthroughfineshunting.Personnelhavebeenspeciallyarrangedtomanagethechemicalliquidwarehouseandexertreasonablecontrolandrequirementsovertheliquiddischargebytheplantandtimelytransportationoftheliquidbysuppliers;emergencytoolssuchasprotectivemasks,bootsandimmisciblepumpshavebeenequipped;(4)Environmentalself-monitoringplanAccordingtotherequirementsoftheEnvironmentalProtectionAdministration,GuangdongXingdaHongyeElectronicsCo.,Ltd.attachesgreatimportancetoenvironmentalmonitoringmanagement.Thus,pursuanttotheMeasuresforSelf-MonitoringandInformationDisclosureofNationalKeyMonitoredEnterprises,theReportontheEnvironmentalImpactoftheTechnicalImprovementandExpansionProjectofGuangdongXingdaHongyeElectronicsCo.,Ltd.andthereplyopinionsforenvironmentalimpactassessment,theCompanyhasformulatedtheEnvironmentalSelf-MonitoringPlanandreportedtothemunicipalenvironmentalprotectionbureauforapprovalandrecord.ItimplementsonlinemonitoringforthePH,CODandammonianitrogenpollutantsdischargedinwastewaterthroughreal-timemonitoringandanautomaticfrequencyofeverytwohours,entruststhequalifiedthird-partyonlinemonitoringequipmentoperationandmaintenanceinstitutetocarryoutperiodicmaintenanceonautomaticmonitoringequipmentandmonitoringdatanetworkingequipment,andentruststhequalifiedthird-partymonitoringunittocarryoutthe“threewastes”projectmonitoring.Allself-monitoringplanresultswillbereportedanddisclosedonpublicplatformsonaperiodicbasis.Inthecaseofnormalproduction,theresultswillbeupdatedonadailybasis,withonlinemonitoringdatadisclosedinrealtimeandmanualmonitoringdatadisclosedonthenextdayafter
completion.Inthecaseofpublicholidays,theoperationmonitoringdatafortheholidayperiodwillbedisclosedonthefirstworkingdayaftertheholiday.Itemsmonitoredonamonthlybasiswillbedisclosedbythe25
th
dayofthemonth.Itemsinspectedonaquarterlybasiswillbedisclosedbythe
th
dayofthelastmonthofthequarter.Theannualself-monitoringreportforthepreviousyearwillbedisclosedattheendofJanuaryeachyear.Inthecaseofshutdownwithdaysoff,thenumberofdaysoffwillbeindicatedintheinformationbarandrelatedproofswillbesubmittedtothemonitoringcenterofthemunicipalenvironmentalbureauforrecord.TheresultsaredisclosedonGuangdongProvinceKeyPollutionSourceRegulatoryInformationPlatformandonNationalPollutionSourceMonitoringInformationManagementandSharingPlatformforpublicmonitoring.(5)OtherenvironmentalinformationthatshouldbedisclosedTheenvironmentalprotectioninvestmentofGuangdongXingdaHongyeElectronicsCo.,Ltd.for2018wasapproximatelyRMB17.5million,mainlyusedastheenvironmentalengineeringinvestment(approximatelyRMB8.5million)andtheoperationofenvironmentalprotectionequipment(approximatelyRMB9million).(6)OtherEnvironmentalInformationAccordingtotheexaminationbytheCompany,theCompanyanditsotherholdingsubsidiariesarenotkeypollutantunits.Allhavefaithfullyimplementedthelawsandregulationsrelatedtoenvironmentalprotection,suchasEnvironmentalProtectionLawofthePeople'sRepublicofChina,WaterPollutionPreventionandControlLawofthePeople'sRepublicofChina,LawofthePeople'sRepublicofChinaonthePreventionandControlofAtmosphericPollution,LawofthePeople'sRepublicofChinaonPreventionandControlofPollutionFromEnvironmentalNoise,LawofthePeople'sRepublicofChinaonthePreventionandControlofEnvironmentalPollutionbySolidWasteinthedailyproductionandoperation,withoutbeingpunishedforviolationsoflawsandregulationsduringtheReportingPeriod.XIXOtherSignificantEvents√Applicable□Notapplicable(1)TheProjectofEstablishingCompanyforMultimediaBusiness:On17November2017,the37
th
Meetingofthe8
th
BoardofDirectorsoftheCompanydeliberatedandpassedtheProposalonEstablishingaCompanyforKonkaMultimediaBusiness.Atpresent,ShenzhenKonkaElectronicsTechnologyCo.,Ltd.hasbeenformallyestablished,andtheCompanyisintheprocessofbusinessswitchingandassetimport.(2)TheProjectofListingTransferofShanghaiRealEstate:On23August2017,the34
th
Meetingofthe8
th
BoardofDirectorsoftheCompanydeliberatedandpassedtheProposalonListingTransferofPartRealEstateonthe.Atpresent,theShanghaiRealEstatetobelistedfortransferhasbeenofficiallylisted,andiscurrentlyinthepublicityperiod.Howevertheprojecthasbeenterminated
duetothefailureofsolicitingpotentialtransferees.(III)Privateplacementofcorporatebonds,assetsecuritizationofcommercialfactoringandassetsecuritizationofaccountsreceivable:Currently,theprivateplacementofcorporatebonds(PhaseI)ofRMB2.5billionhasbeenissued;theassetsecuritizationofcommercialfactoringandassetsecuritizationofaccountsreceivableareinthedeclaration.(IV)StrategiccooperationagreementwithChuzhouMunicipalGovernment:Currently,theprojectlandhasbeenawardedforKonkaIntelligentHomeApplianceandEquipmentIndustrialParkProject(includingAnkangIntelligentFactory)andScienceandTechnologyInnovationCenterProjectPhaseIIandpreparationsarebeingmadeforthecommencementofconstruction;intermsofOpto-electronicsIndustrialFundProject(namely,ChuzhouHuikeIntelligentHomeApplianceIndustryInvestmentPartnership(limitedpartnership)),theinvestmentagreementhasbeensignedandchangesinbusinessregistrationhavebeencompleted;inrespectofKonkaNewRetailHeadquartersProject,theprojectcompanyhasbeenestablished;intermsofKonkaMinghuHealth&WellnessTownProject,negotiationsarebeingcarriedout.(V)TheprojectofNanjingK-StarCloudNetworkHeadquartershassignedthelanduserighttransferagreementandisbeingreportedforapprovalandpiling.TheCompanyhastransferredthecontrolpowerovertheprojectcompanyrecently.(VI)Disclosureindexofsignificantinformation
AnnouncementNo.
| AnnouncementNo. | Date | Title | Pageonnewspaper | Linkonhttp://www.cninfo.com.cn |
| 2018-01 | 3January2018 | AnnouncementonReceivingtheGrantsofZombieEnterprises | SecuritiesTimesB5,TaKungPaoB1 | http://www.cninfo.com.cn/new/index |
| 2018-02 | 4January2018 | AnnouncementonRestructuringandRenamingofControllingShareholdersandtheChangesofRelevantofBusinessRegistrationEvents | SecuritiesTimesB44,TaKungPaoA20 | |
| 2018-03 | 4January2018 | AnnouncementonRecognitionofDisclosureFee | SecuritiesTimesB44,TaKungPaoA20 | |
| 2018-04 | 4January2018 | AnnouncementonMajority-ownedSubsidiary’receivingoftheGovernmentSubsidies | SecuritiesTimesB44,TaKungPaoA20 | |
| 2018-05 | 19January2018 | AnnouncementonthePlannedListingtoTransfer | SecuritiesTimesB148,TaKungPao |
theSharesofQingsongVentureInvestmentFund
| theSharesofQingsongVentureInvestmentFund | B2 | ||
| 2018-06 | 25January2018 | AnnouncementontheChangesofConsultingTelephoneoftheCompany’sInvestors | SecuritiesTimesB28,TaKungPaoB1 |
| 2018-07 | 26January2018 | Announcementonthe2017EarningsForecasts | SecuritiesTimesB25,TaKungPaoB5 |
| 2018-08 | 20March2018 | AnnouncementontheProgressofthePlannedListingtoTransfertheSharesofQingsongVentureInvestmentFund | SecuritiesTimesB40,TaKungPaoB3 |
| 2018-09 | 24March2018 | AnnouncementonReceivingtheTaxReimbursementEvents | SecuritiesTimesB177,TaKungPaoB1 |
| 2018-10 | 31March2018 | Announcementonthe2017AnnualReport | |
| 2018-11 | 31March2018 | AnnouncementontheAbstractofthe2017AnnualReport | SecuritiesTimesB253,TaKungPaoA18 |
| 2018-12 | 31March2018 | AnnouncementontheResolutionofthe40thMeetingofthe8thBoardofDirectors | SecuritiesTimesB253,TaKungPaoA18 |
| 2018-13 | 31March2018 | AnnouncementontheResolutionofthe17thMeetingofthe8thSupervisoryCommittee | SecuritiesTimesB253,TaKungPaoA18 |
| 2018-14 | 31March2018 | AnnouncementontheExpectationofthe2018RoutineRelatedTransaction | SecuritiesTimesB253,TaKungPaoA18 |
| 2018-15 | 31March2018 | AnnouncementontheExternalGuaranteeofKonkaGroupCo.,Ltd. | SecuritiesTimesB253,TaKungPaoA18 |
| 2018-16 | 31March2018 | AnnouncementontheChangesofPartofAccountingPolicies | SecuritiesTimesB254,TaKungPaoA18 |
| 2018-17 | 31March | AnnouncementonOffering | SecuritiesTimes |
2018
| 2018 | EntrustedLoanstoMajority-ownedSubsidiary | B254,TaKungPaoA18 | |
| 2018-18 | 31March2018 | NoticeonConveningthe2017AnnualGeneralMeeting | SecuritiesTimesB254,TaKungPaoA19 |
| 2018-19 | 31March2018 | AnnouncementontheCompletionofIndustrialandCommercialRegistrationofChangesofTransferringtheSharesofQingsongVentureInvestmentFund | SecuritiesTimesB254,TaKungPaoA19 |
| 2018-20 | 10April2018 | AnnouncementonMajority-ownedSubsidiary’receivingoftheGovernmentSubsidies | SecuritiesTimesB40,TaKungPaoB6 |
| 2018-21 | 14April2018 | Announcementonthe2018FirstQuarterEarningsForecasts | SecuritiesTimesB48,TaKungPaoB3 |
| 2018-22 | 18April2018 | AnnouncementontheResolutionofthe41stMeetingofthe8thBoardofDirectors | SecuritiesTimesB37,TaKungPaoB9 |
| 2018-23 | 18April2018 | NoticeonConveningthe1stExtraordinaryGeneralMeetingof2018 | SecuritiesTimesB37,TaKungPaoB9 |
| 2018-24 | 18April2018 | AnnouncementonCapitalIncreaseinSanjiangRealEstateandRelated-partyTransactions | SecuritiesTimesB37,TaKungPaoB9 |
| 2018-25 | 18April2018 | AnnouncementonSponsoringtheEstablishmentofIndustrialBuyoutFund | SecuritiesTimesB37,TaKungPaoB9 |
| 2018-26 | 24April2018 | AnnouncementontheResolutionofthe2017AnnualGeneralMeeting | SecuritiesTimesB189,TaKungPaoB5 |
| 2018-27 | 28April2018 | 2018FirstQuarterReport | |
| 2018-28 | 28April2018 | Textofthe2018FirstQuarterReport | SecuritiesTimesB44,TaKungPaoB14 |
2018-29
| 2018-29 | 4May2018 | AnnouncementontheResolutionofthe1stExtraordinaryGeneralMeetingof2018 | SecuritiesTimesB16,TaKungPaoB5 |
| 2018-30 | 8May2018 | AnnouncementontheProgressofExternalGuarantee | SecuritiesTimesB28,TaKungPaoB6 |
| 2018-31 | 22May2018 | AnnouncementonSigningtheStrategicCooperationAgreementwithChuzhouMunicipalGovernment | SecuritiesTimesB25,TaKungPaoA17 |
| 2018-32 | 22May2018 | OutlineofMediumandLong-termDevelopmentStrategyProgramming | SecuritiesTimesB25,TaKungPaoA17 |
| 2018-33 | 23May2018 | AnnouncementontheResolutionofthe43rdMeetingofthe8thBoardofDirectors | SecuritiesTimesB17,TaKungPaoB4 |
| 2018-34 | 23May2018 | AnnouncementonOfferingGuaranteeLimittotheWholly-ownedSubsidiary | SecuritiesTimesB17,TaKungPaoB4 |
| 2018-35 | 23May2018 | AnnouncementonthePrivatePlacementofCorporateBondProgrammingbytheCompany | SecuritiesTimesB17,TaKungPaoB4 |
| 2018-36 | 23May2018 | AnnouncementonCarryingouttheBusinessofAssetSecuritizationofBusinessFactoringbythewholly-ownedSubsidiary | SecuritiesTimesB17,TaKungPaoB4 |
| 2018-37 | 23May2018 | AnnouncementonCarryingouttheBusinessofAssetSecuritizationofAccountsReceivable | SecuritiesTimesB17,TaKungPaoB4 |
| 2018-38 | 23May2018 | NoticeonConveningthe2ndExtraordinaryGeneralMeetingof2018 | SecuritiesTimesB17,TaKungPaoB4 |
| 2018-39 | 25May2018 | AnnouncementonSigningtheStrategicCooperationAgreementwithCMSZhiyuanCapital | SecuritiesTimesB32,TaKungPaoB8 |
2018-40
| 2018-40 | 29May2018 | AnnouncementontheImplementationofDividendPlanof2017 | SecuritiesTimesB114,TaKungPaoB14 |
| 2018-41 | 29May2018 | Announcementonthewholly-ownedsubsidiary’sOfferingGuaranteetoMajority-ownedSubsidiary | SecuritiesTimesB114,TaKungPaoB14 |
| 2018-42 | 31May2018 | AnnouncementontheControllingShareholders’PlanningofProvidingtheBusinessofAssetSecuritizationofBusinessFactoringwiththeDifference | SecuritiesTimesB100,TaKungPaoB5 |
| 2018-43 | 8June2018 | AnnouncementontheResolutionofthe2ndExtraordinaryGeneralMeetingof2018 | SecuritiesTimesB40,TaKungPaoB5 |
| 2018-44 | 14June2018 | AnnouncementonOfferingOverseasLoanunderDomesticGuaranteetoForeignWholly-ownedSubsidiary | SecuritiesTimesB36,TaKungPaoB2 |
| 2018-45 | 16June2018 | AnnouncementontheResolutionofthe44thMeetingofthe8thBoardofDirectors | SecuritiesTimesB29,TaKungPaoB6 |
| 2018-46 | 16June2018 | AnnouncementontheTransferof51%EquitiesofKunshanKangshengandRelated-partyTransactions | SecuritiesTimesB29,TaKungPaoB6 |
| 2018-47 | 16June2018 | IndicativeAnnouncementontheExpectationofWinningtheBidoftheProject | SecuritiesTimesB4,TaKungPaoB6 |
| 2018-48 | 20June2018 | AnnouncementontheProgressofOfferingGuaranteestothewholly-ownedsubsidiary | SecuritiesTimesB52,TaKungPaoB1 |
| 2018-49 | 22June2018 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB29,TaKungPaoB6 |
2018-50
| 2018-50 | 28June2018 | AnnouncementontheResolutionofthe45thMeetingofthe8thBoardofDirectors | SecuritiesTimesB44,TaKungPaoB7 |
| 2018-51 | 28June2018 | AnnouncementontheInvestmentandEstablishmentofHeadquarterBaseofKonkaOneBeltandOneRoadinChengdu | SecuritiesTimesB44,TaKungPaoB7 |
| 2018-52 | 28June2018 | AnnouncementonInformationDisclosureofVoluntarinessofReceivingLetterofAcceptance | SecuritiesTimesB44,TaKungPaoB7 |
| 2018-53 | 3July2018 | AnnouncementonProgressofTransferof51%EquitiesofKunshanKangshengandRelated-partyTransactions | SecuritiesTimesB52,TaKungPaoB5 |
| 2018-54 | 3July2018 | AnnouncementonProgressofProvidingGuaranteesforWholly-ownedSubsidiaries | SecuritiesTimesB52,TaKungPaoB5 |
| 2018-55 | 4July2018 | AnnouncementontheChangesofConsultingTelephoneoftheCompany’sInvestors | SecuritiesTimesB77,TaKungPaoB6 |
| 2018-56 | 14July2018 | Announcementonthe2018InterimEarningsForecasts | SecuritiesTimesB21,TaKungPaoA18 |
| 2018-57 | 8August2018 | AnnouncementonVolunteerInformationDisclosureofPre-winningtheBidforProject | SecuritiesTimesB33,TaKungPaoB7 |
| 2018-58 | 9August2018 | AnnouncementonProgressofProvidingGuaranteesforOverseasWholly-ownedSubsidiaries | SecuritiesTimesB41,TaKungPaoB2 |
| 2018-59 | 11August2018 | AnnouncementonJoint-stockCompany’sWinningtheBidforLandUseRight | SecuritiesTimesB33,TaKungPaoB1 |
| 2018-60 | 14August2018 | AnnouncementonResolutionsofthe47thMeetingofthe8thBoardof | SecuritiesTimesB21,TaKungPaoA18 |
Directors
| Directors | |||
| 2018-61 | 14August2018 | IndicativeAnnouncementonConstructionofZiboHigh-EndEquipmentIndustrialParkbyInvesting | SecuritiesTimesB21,TaKungPaoA18 |
| 2018-62 | 14August2018 | IndicativeAnnouncementonEstablishingNanjingK-StarCloudNetworkHeadquartersbyInvesting | SecuritiesTimesB25,TaKungPaoA18 |
| 2018-63 | 21August2018 | AnnouncementonOfferingOverseasLoanunderDomesticGuaranteetoForeignWholly-ownedSubsidiary | SecuritiesTimesB60,TaKungPaoB4 |
| 2018-64 | 23August2018 | AnnouncementonVolunteerInformationDisclosureofReceivingtheLetterofAcceptance | SecuritiesTimesB29,TaKungPaoB6 |
| 2018-65 | 31August2018 | Announcementonthe2018InterimReport | |
| 2018-66 | 31August2018 | AnnouncementontheAbstractofthe2018InterimReport | SecuritiesTimesB48,TaKungPaoB4 |
| 2018-67 | 7September2018 | AnnouncementonCompletionofRecordRegistrationofPrivatePlacementFundfortheIndustrialM&AFundInitiatedbytheCompany | SecuritiesTimesB32,TaKungPaoA18 |
| 2018-68 | 19September2018 | AnnouncementonResolutionsofthe49thMeetingofthe8thBoardofDirectors | SecuritiesTimesB81,TaKungPaoB4 |
| 2018-69 | 19September2018 | AnnouncementonProvidingFinancialAidtoSanjiangRealEstateCo.,Ltd.andRelated-partyTransactions | SecuritiesTimesB82,TaKungPaoB4 |
| 2018-70 | 19September2018 | AnnouncementonProvidingGuaranteeLineforJoint-stockCompaniesandRelated-partyTransactions | SecuritiesTimesB81,TaKungPaoB4 |
2018-71
| 2018-71 | 19September2018 | AnnouncementonExternalGuarantees | SecuritiesTimesB81,TaKungPaoB4 |
| 2018-72 | 19September2018 | NoticeonConveningthe3rdExtraordinaryGeneralMeetingof2018 | SecuritiesTimesB82,TaKungPaoB4 |
| 2018-73 | 21September2018 | AnnouncementonProgressofProvidingGuaranteesforWholly-ownedSubsidiaries | SecuritiesTimesB84,TaKungPaoB6 |
| 2018-74 | 22September2018 | AnnouncementonReductionofSharesofShareholders | SecuritiesTimesB25,TaKungPaoB5 |
| 2018-75 | 26September2018 | AnnouncementonSigningStrategicCooperationAgreementwithShenzhenBinhaiFundManagementCo.,Ltd. | SecuritiesTimesB20,TaKungPaoB2 |
| 2018-76 | 9October2018 | Announcementonthe3rdExtraordinaryGeneralMeetingof2018 | SecuritiesTimesB9,TaKungPaoA18 |
| 2018-77 | 13October2018 | AnnouncementonProgressofProvidingGuaranteesforMajority-ownedSubsidiaries | SecuritiesTimesB45,TaKungPaoB3 |
| 2018-78 | 13October2018 | Announcementonthe2018FirstQuarterEarningsForecasts | SecuritiesTimesB45,TaKungPaoB3 |
| 2018-79 | 17October2018 | AnnouncementonResolutionsofthe50thMeetingofthe8thBoardofDirectors | SecuritiesTimesB28,TaKungPaoB5 |
| 2018-80 | 17October2018 | AnnouncementonExternalInvestments | SecuritiesTimesB28,TaKungPaoB5 |
| 2018-81 | 24October2018 | AnnouncementonReceivingNoObjectionLetteronthePrivatePlacementoftheCompany’scorporatebondsin2018MeetingtheTransferConditionsofShenzhenStockExchange | SecuritiesTimesB149,TaKungPaoB10 |
2018-82
| 2018-82 | 27October2018 | AnnouncementonWinningtheBiddingforLandforProjectofK-StarCloudNetworkHeadquarters | SecuritiesTimesB80,TaKungPaoB5 |
| 2018-83 | 31October2018 | 2018ThirdQuarterReport | |
| 2018-84 | 31October2018 | Textofthe2018ThirdQuarterReport | SecuritiesTimesB52,TaKungPaoB6 |
| 2018-85 | 31October2018 | AnnouncementonResolutionsofthe51stMeetingofthe8thBoardofDirectors | SecuritiesTimesB52,TaKungPaoB6 |
| 2018-86 | 31October2018 | AnnouncementonExternalGuarantees | SecuritiesTimesB52,TaKungPaoB6 |
| 2018-87 | 31October2018 | AnnouncementonVolunteerInformationDisclosureofProjectPre-concluded | SecuritiesTimesB88,TaKungPaoB6 |
| 2018-88 | 13November2018 | AnnouncementonVolunteerInformationDisclosureofReceivingNoticeofBusinessConclusion | SecuritiesTimesB24,TaKungPaoB3 |
| 2018-89 | 14November2018 | AnnouncementonProgressofProvidingGuaranteesforWholly-ownedSubsidiaries | SecuritiesTimesB20,TaKungPaoB5 |
| 2018-90 | 17November2018 | AnnouncementonResolutionsofthe52ndMeetingofthe8thBoardofDirectors | SecuritiesTimesB33,TaKungPaoB7 |
| 2018-91 | 17November2018 | AnnouncementonResolutionsofthe21stMeetingofthe8thSupervisoryCommittee | SecuritiesTimesB33,TaKungPaoB7 |
| 2018-92 | 17November2018 | NoticeonConveningthe4thExtraordinaryGeneralMeetingof2018 | SecuritiesTimesB33,TaKungPaoB7 |
| 2018-93 | 30November2018 | AnnouncementonProgressofProvidingGuaranteesforMajority-ownedSubsidiaries | SecuritiesTimesB32,TaKungPaoA18 |
2018-94
| 2018-94 | 30November2018 | AnnouncementonGeneralElectionofEmployeeSupervisors | SecuritiesTimesB32,TaKungPaoA18 |
| 2018-95 | 3December2018 | AnnouncementonResolutionsofthe4thExtraordinaryGeneralMeetingof2018 | SecuritiesTimesB64,TaKungPaoB6 |
| 2018-96 | 5December2018 | AnnouncementonResolutionsofthe1stMeetingofthe9thBoardofDirectors | SecuritiesTimesB25,TaKungPaoA21 |
| 2018-97 | 5December2018 | AnnouncementonResolutionsofthe1stMeetingofthe9thSupervisoryCommittee | SecuritiesTimesB25,TaKungPaoA21 |
| 2018-98 | 5December2018 | AnnouncementonEstablishingKonka(Chuzhou)SmartAppliancesandEquipmentIndustrialParkbyInvestingandGovernment’sIntentiontoAcquirePlantLandofAnhuiKonka | SecuritiesTimesB25,TaKungPaoA21 |
| 2018-99 | 5December2018 | AnnouncementonProgressofProvidingGuaranteesforMajority-ownedSubsidiaries | SecuritiesTimesB25,TaKungPaoA21 |
| 2018-100 | 22December2018 | AnnouncementonProgressofProvidingGuaranteesforMajority-ownedSubsidiaries | SecuritiesTimesB17,TaKungPaoB3 |
| 2018-101 | 25December2018 | AnnouncementonResolutionsofthe2ndMeetingofthe9thBoardofDirectors | SecuritiesTimesB32,TaKungPaoB5 |
| 2018-102 | 25December2018 | AnnouncementonAssignmentofSharesofChuzhouHuikeIntelligentHouseholdApplianceIndustrialInvestmentPartnership(LimitedPartnership) | SecuritiesTimesB32,TaKungPaoB5 |
XXSignificantEventsofSubsidiaries□Applicable√Notapplicable
PartVIShareChangesandShareholderInformation
I.ShareChanges1.ShareChanges
Unit:share
Before
| 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% | |||||
| Amongwhich:Sharesheldbydomesticlegalpersons | |||||||||
| Sharesheldbydomesticnaturalpersons | 19,500 | 0.00% | 19,500 | 0.00% | |||||
| 2.Unrestrictedshares | 2,407,925,908 | 100% | 2,407,925,908 | 100% | |||||
| 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% | 2,407,945,408 | 100% | |||||
Reasonsforsharechanges:
□Applicable√NotapplicableApprovalofsharechanges:
□Applicable√NotapplicableTransferofshareownership:
□Applicable√NotapplicableProgressonanysharerepurchases:
□Applicable√NotapplicableProgressonreducingtherepurchasedsharesbymeansofcentralizedbidding:
□Applicable√NotapplicableEffectsofsharechangesonthebasicanddilutedearningspershare,equitypershareattributabletotheCompany’sordinaryshareholdersandotherfinancialindicatorsoftheprioryearandtheprioraccountingperiod,respectively:
□Applicable√NotapplicableOtherinformationthattheCompanyconsidersnecessaryorisrequiredbythesecuritiesregulatortobedisclosed:
□Applicable√Notapplicable
2.ChangesinRestrictedShares
□Applicable√Notapplicable
II.IssuanceandListingofSecurities1.Securities(ExclusiveofPreferredShares)IssuedintheReportingPeriod□Applicable√Notapplicable2.ChangestoTotalShares,ShareholderStructureandAssetandLiabilityStructures□Applicable√Notapplicable3.ExistingStaff-HeldShares□Applicable√Notapplicable
IIIShareholdersandActualController1.ShareholdersandTheirShareholdingsatthePeriod-End
Unit:share
Numberofordinaryshareholders
| Numberofordinaryshareholders | 89,196 | Numberofordinaryshareholdersatthemonth-endpriortothedisclosureofthisReport | 88,015 | Numberofpreferredshareholderswithresumedvotingrights(ifany) | 0 | Numberofpreferredshareholderswithresumedvotingrightsatthemonth-endpriortothedisclosureofthisReport(ifany)(seenote8) | 0 | |||||||
| 5%orgreatershareholdersortop10shareholders | ||||||||||||||
| Nameofshareholder | Natureofshareholder | Shareholdingpercentage | Totalsharesheldattheperiod-end | Increase/decreaseintheReportingPeriod | Restrictedsharesheld | Unrestrictedsharesheld | Sharesinpledgeorfrozen | |||||||
| Status | Shares | |||||||||||||
| 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 | ||||||||
| HOLYTIMEGROUPLIMITED | Foreignlegalperson | 2.33% | 56,139,100 | 89,276 | 0 | 56,139,100 | ||||||||
| GUOYUANSECURITIESBROKER(HK)CO.,LTD. | Foreignlegalperson | 2.25% | 54,203,779 | -551,366 | 0 | 54,203,779 | ||||||||
| GAOLINGFUND,L.P. | Foreignlegalperson | 2.19% | 52,801,250 | 0 | 0 | 52,801,250 | ||||||||
| ZHANGXIAOYU | Domesticnaturalperson | 0.99% | 23,835,278 | 23,835,278 | 0 | 23,835,278 | ||||||||
| CHINAMERCHANTSSECURITIES(HK)LIMITED | State-ownedlegalperson | 0.93% | 22,475,124 | 643,104 | 0 | 22,475,124 | ||||||||
NAMNGAI
| NAMNGAI | Foreignnaturalperson | 0.90% | 21,712,140 | -307,900 | 0 | 21,712,140 | ||||
| YUNNANINTERNATIONALTRUSTCO.,LTD-JULINO.48SINGLECAPITALTRUST | Other | 0.81% | 19,530,380 | -686,480 | 0 | 19,530,380 | ||||
| YUNNANINTERNATIONALTRUSTCO.,LTD-JULINO.49SINGLECAPITALTRUST | Other | 0.72% | 17,408,616 | 10,272,514 | 0 | 17,408,616 | ||||
| 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. | |||||||||
| 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 | |||||||
| HOLYTIMEGROUPLIMITED | 56,139,100 | Domesticallylistedforeignstock | 56,139,100 | |||||||
| GUOYUANSECURITIESBROKER(HK)CO.,LTD. | 54,203,779 | Domesticallylistedforeignstock | 54,203,779 | |||||||
| GAOLINGFUND,L.P. | 52,801,250 | Domesticallylistedforeignstock | 52,801,250 | |||||||
| ZHANGXIAOYU | 23,835,278 | RMB-denominated | 23,835,278 | |||||||
ordinarystock
| ordinarystock | ||||
| CHINAMERCHANTSSECURITIES(HK)LIMITED | 22,475,124 | Domesticallylistedforeignstock | 22,475,124 | |
| NAMNGAI | 21,712,140 | Domesticallylistedforeignstock | 21,712,140 | |
| YUNNANINTERNATIONALTRUSTCO.,LTD-JULINO.48SINGLECAPITALTRUST | 19,530,380 | RMB-denominatedordinarystock | 19,530,380 | |
| YUNNANINTERNATIONALTRUSTCO.,LTD-JULINO.49SINGLECAPITALTRUST | 17,408,616 | RMB-denominatedordinarystock | 17,408,616 | |
| 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. | |||
| Top10ordinaryshareholdersinvolvedinsecuritiesmargintrading(ifany)(seenote4) | ZhangXiaoyuholds23,835,278A-sharesintheCompanythroughheraccountofcollateralsecuritiesformargintradinginHuaxiSecuritiesCo.,Ltd. | |||
Indicatebytickmarkwhetheranyofthetop10ordinaryshareholdersorthetop10unrestrictedordinaryshareholdersoftheCompanyconductedanypromissoryrepoduringtheReportingPeriod.
□Yea√NoNosuchcasesintheReportingPeriod.2.ControllingShareholderNatureofthecontrollingshareholder:Controlledbyacentralstate-ownedlegalpersonTypeofthecontrollingshareholder:legalperson
| Nameofactualcontroller | Legalrepresentative/personincharge | Dateofestablishment | Unifiedsocialcreditcode | Principalactivity |
| OverseasChineseTownEnterprisesCo. | DuanXiannian | 11November1985 | 91440300190346175T | Exportoftextile,lightindustrialproducts,etc;importofself-usedgoodsinShenzhen,mechanicalequipment,lightindustrialproducts,etc.asapprovedbytherelevantauthoritiesof |
Shenzhen(underGovernmentDocumentJMB[92]WJMGTSZZNo.A19024);compensationtrade;investmentintourismandrelevantculturalindustry(includingartperformance,entertainmentandtheirservices,etc),industry,realestate,commerce&trade,packaging,decorationandinvestmentinprintingindustry.Theconvertofexportcommoditiesintodomesticsaleandthedomesticsalesofimportcommodities.Travelling,rentalofwarehouses,cultureandart,bondedwarehouseofcardonation,conventionandexhibitionservices(theprojectsinvolvedinlicensemanagementcanbeoperatedaftergettingtherelevantlicensefirst);salesofautomobile(sedancarincluded)
| Shenzhen(underGovernmentDocumentJMB[92]WJMGTSZZNo.A19024);compensationtrade;investmentintourismandrelevantculturalindustry(includingartperformance,entertainmentandtheirservices,etc),industry,realestate,commerce&trade,packaging,decorationandinvestmentinprintingindustry.Theconvertofexportcommoditiesintodomesticsaleandthedomesticsalesofimportcommodities.Travelling,rentalofwarehouses,cultureandart,bondedwarehouseofcardonation,conventionandexhibitionservices(theprojectsinvolvedinlicensemanagementcanbeoperatedaftergettingtherelevantlicensefirst);salesofautomobile(sedancarincluded) | ||
| Actualcontroller’sholdingsinotherlistedcompaniesathomeorabroadintheReportingPeriod | Asof31December2018,OverseasChineseTownEnterprisesCo.held47.38%equityofShenzhenOverseasChineseTownCo.,Ltd.(acompanylistedonthemainBoardofShenzhenStockExchange,SZ.000069).Meanwhile,ShenzhenOverseasChineseTownCo.,Ltd.indirectlyheld70.94%equityofOCT(Asia)HoldingsLtd.(acompanylistedonthemainBoardofHongKongStockExchange,3366.HK).OverseasChineseTownEnterprisesCo.indirectlyheld49.52%equityofYunnanTourismCo.,Ltd(acompanylistedontheSMEBoardofShenzhenStockExchange,SZ.002059)throughincreasingcapitaltoYunnanExpoTourismGroupHoldings.,Ltd. | |
ChangeofthecontrollingshareholderintheReportingPeriod:
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.3.ActualControllerandItsActing-in-ConcertPartiesNatureoftheactualcontroller:Centralinstitutionforstate-ownedassetsmanagement
Typeoftheactualcontroller:legalperson
Nameofactualcontroller
| Nameofactualcontroller | Legalrepresentative/personincharge | Dateofestablishment | Unifiedsocialcreditcode | Principalactivity |
| State-ownedAssetsSupervisionandAdministrationCommissionoftheStateCouncil | HaoPeng | Notapplicable | Notapplicable | |
| OtherlistedcompaniesathomeorabroadcontrolledbytheactualcontrollerintheReportingPeriod | Notapplicable | |||
ChangeoftheactualcontrollerduringtheReportingPeriod:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.OwnershipandcontrolrelationsbetweentheactualcontrollerandtheCompany:
IndicatebytickmarkwhethertheactualcontrollercontrolstheCompanyviatrustorotherwaysofassetmanagement.□Applicable√Notapplicable4.Other10%orGreaterCorporateShareholders□Applicable√Notapplicable5.LimitationsonShareholdingDecreasebytheCompany’sControllingShareholder,ActualController,ReorganizerandOtherCommitmentMakers√Applicable□NotapplicableInSeptember2018,ShenzhenOverseasChineseTownCapitalInvestmentManagementCo.,Ltd.,a
State-OwnedAssetsSupervisionandAdministration
CommissionoftheStateCouncilOverseasChineseTownEnterprisesCo.andits
whollyownedsubsidiaries
OverseasChineseTownEnterprisesCo.andits
whollyownedsubsidiaries
KonkaGroupCo.,Ltd.
KonkaGroupCo.,Ltd.100%
100%29.999997%
wholly-ownedsubsidiaryofOCTGroup,thecontrollingshareholderoftheCompany,reduceditsholdingof7,183,800sharesoftheCompanythroughsecondarymarkettrading.Beforethereduction,OCTGroupanditswholly-ownedsubsidiariesHappyBloomInvestmentLimitedandShenzhenOverseasChineseTownCapitalInvestmentManagementCo.,Ltd.heldatotalof729,567,342KonkaGroup-A-shares(000016)andB-shares(200016)(unrestrictedordinaryshares),accountingfor30.298334%oftheCompany’sequity.Afterthereduction,theaforementionedthreeshareholdersholdatotalof722,383,542KonkaGroup-Ashares(000016)andB-shares(200016)(unrestrictedordinaryshares),accountingfor29.999997%oftheCompany’stotalsharecapital.
PartVIIPreferredShares
□Applicable√Notapplicable
NopreferredsharesintheReportingPeriod.
PartVIIIDirectors,Supervisors,SeniorManagementandStaff
IChangeinShareholdingsofDirectors,SupervisorsandSeniorManagement
Name
| Name | Officetitle | Incumbent/Former | Gender | Age | Startoftenure | Endoftenure | Beginningshareholding | IncreaseintheReportingPeriod | DecreaseintheReportingPeriod | Otherincrease/decrease | Endingshareholding |
| LiuFengxi | DirectorandChairmanoftheBoard | Incumbent | Male | 47 | 3December2018 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
| HeHaibin | Director | Incumbent | Male | 45 | 3December2018 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
| ZhangJing | Director | Incumbent | Male | 37 | 3December2018 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
| ZhouBin | Director | Incumbent | Male | 40 | 3December2018 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
| SunShengdian | Independentdirector | Incumbent | Male | 64 | 3December2018 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
| WangShuguang | Independentdirector | Incumbent | Male | 48 | 3December2018 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
| DengChunhua | Independentdirector | Incumbent | Female | 56 | 3December2018 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
| WangYoulai | Supervisor,chairmanoftheSupervisoryCommittee | Incumbent | Male | 58 | 3December2018 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
| YangGuobin | Supervisor | Incumbent | Male | 50 | 3December2018 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
| LiJun | Employeesupervisor | Incumbent | Male | 48 | 29November | 3December2021 | 0 | 0 | 0 | 0 | 0 |
2018
| 2018 | |||||||||||
| ZhouBin | President | Incumbent | Male | 40 | 10March2017 | 10March2020 | 0 | 0 | 0 | 0 | 0 |
| HeJianjun | Vicepresident | Incumbent | Male | 49 | 10March2017 | 10March2020 | 0 | 0 | 0 | 0 | 0 |
| LiHongtao | Vicepresident | Incumbent | Male | 51 | 10March2017 | 10March2020 | 0 | 0 | 0 | 0 | 0 |
| WuYongjun | BoardSecretary | Incumbent | Male | 44 | 10March2017 | 10March2020 | 0 | 0 | 0 | 0 | 0 |
| LiChunlei | CFO | Incumbent | Male | 46 | 10March2017 | 10March2020 | 0 | 0 | 0 | 0 | 0 |
| YangBo | Vicepresident | Incumbent | Male | 49 | 10March2017 | 10March2020 | 0 | 0 | 0 | 0 | 0 |
| CaoShiping | Vicepresident | Incumbent | Male | 41 | 10March2017 | 10March2020 | 0 | 0 | 0 | 0 | 0 |
| SunQingyan | Vicepresident | Incumbent | Male | 47 | 18April2017 | 10March2020 | 26,000 | 0 | 0 | 0 | 26,000 |
| JinQingjun | Director | Former | Male | 62 | 28May2015 | 3December2018 | 0 | 0 | 0 | 0 | 0 |
| XiaoZuhe | Independentdirector | Former | Male | 53 | 28May2015 | 3December2018 | 0 | 0 | 0 | 0 | 0 |
| ZhangShuhua | Independentdirector | Former | Male | 54 | 28May2015 | 3December2018 | 0 | 0 | 0 | 0 | 0 |
| HaoGang | Supervisor | Former | Male | 46 | 28May2015 | 3December2018 | 0 | 0 | 0 | 0 | 0 |
| HaoGang | ChairmanoftheSupervisoryCommittee | Former | Male | 46 | 4June2015 | 3December2018 | 0 | 0 | 0 | 0 | 0 |
| Total | -- | -- | -- | -- | -- | -- | 26,000 | 0 | 0 | 0 | 26,000 |
IIChangeofDirectors,SupervisorsandSeniorManagement√Applicable□Notapplicable
| Name | Officetitle | Typeofchange | Dateofchange | Reasonforchange |
LiuFengxi
| LiuFengxi | Director | Engaged | 3December2018 | Electedasdirectorthroughshareholdersmeeting |
| LiuFengxi | ChairmanoftheBoard | Engaged | 3December2018 | ElectedasChairmanoftheBoardthroughBoardofDirectors |
| HeHaibin | Director | Engaged | 3December2018 | Electedasdirectorthroughshareholdersmeeting |
| ZhangJing | Director | Engaged | 3December2018 | Electedasdirectorthroughshareholdersmeeting |
| ZhouBin | Director | Engaged | 3December2018 | Electedasdirectorthroughshareholdersmeeting |
| SunShengdian | Independentdirector | Engaged | 3December2018 | Electedasindependentdirectorthroughshareholdersmeeting |
| WangShuguang | Independentdirector | Engaged | 3December2018 | Electedasindependentdirectorthroughshareholdersmeeting |
| DengChunhua | Independentdirector | Engaged | 3December2018 | Electedasindependentdirectorthroughshareholdersmeeting |
| WangYoulai | Supervisor | Engaged | 3December2018 | Electedassupervisorthroughshareholdersmeeting |
| WangYoulai | chairmanoftheSupervisoryCommittee | Engaged | 3December2018 | ElectedaschairmanoftheSupervisoryCommitteethroughtheSupervisoryCommittee |
| YangGuobin | Supervisor | Engaged | 3December2018 | Electedassupervisorthroughshareholdersmeeting |
| LiJun | Employeesupervisor | Engaged | 29November2018 | Electedasemployeesupervisorthroughcongressofworksandstaff |
| JinQingjun | Director | Expired | 3December2018 | Theservicetermwasexpired |
| XiaoZuhe | Independentdirector | Expired | 3December2018 | Theservicetermwasexpired |
| ZhangShuhua | Independentdirector | Expired | 3December2018 | Theservicetermwasexpired |
| HaoGang | Supervisor | Expired | 3December2018 | Theservicetermwasexpired |
| HaoGang | ChairmanoftheSupervisoryCommittee | Expired | 3December2018 | Theservicetermwasexpired |
IIIBiographicalInformationProfessionalbackgrounds,majorworkexperienceandcurrentdutiesintheCompanyoftheincumbentdirectors,supervisorsandseniormanagement:
1.DirectorLiuFengxi,male,bornin1972,wastheChairmanoftheBoardwithamasterdegree.HeonceworkedasthemarketingGMforthemulti-mediadivisionofKonkaGroup,AssistantGMandthenViceGMofShenzhenKonkaTelecommunicationsTechnologyCo.,Ltd.,ChiefoftheOperationManagementCenterofKonkaGroup,AssistanttoPresidentandVicePresidentofKonkaGroup,etc.AndnowheisactingastheBoardChairmanandCEOofKonkaGroup.HeHaibin,male,bornin1974,asenioraccountant,wasadirectoroftheCompanywithamasterdegree.HeonceworkedastheChiefofAuditDepartmentandFinancialDepartmentinOverseasChineseTownGroupCorporation,asPrincipalofFinanceinPlanningDepartmentoftheCrownePlazaShenzhen,asCFOinShenzhenOCTSeaviewHotelCo.,Ltd.,asCFOinInterContinentalShenzhen,asViceCFOinOverseasChineseTownGroupCorporationandasCFOinOverseasChineseTownHongKongLimited,GMofOCTCapitalInvestmentManagementCo.,Ltd.,theChiefAccountantofShenzhenOCTCo.,Ltd.,andChiefofBusinessManagementDivisioninOverseasChineseTownEnterprisesCo.etc.NowheservesastheStandingCommitteeandBoardSecretarytheChiefAccountantofOverseesChineseTownGroupCorporation,andtheChairmanoftheBoardofShenzhenOCTCapitalInvestmentManagementCo.,Ltd,directorofOCT(Yunnan)InvestmentCo.,Ltd,ExecutiveDirectorofOverseasChineseCity(Asia)HoldingCo.,Ltd.,aswellasadirectorofKonkaGroup.ZhangJing,Director,male,wasbornin1982,MBA.HeservedasManageroftheCEO’sOfficeinOCTGroup,SeniorManageroftheStrategicDevelopmentDepartmentinShenzhenOCTCo.,Ltd.,amemberofthePreparatoryWorkGroupofQingdaoOCT,DirectoroftheAdministrationDepartment(DeputyDirectorofthePartyCommitteeOffice)inShenzhenOCTPropertiesCo.,Ltd.,DeputyDirectorandDirectoroftheStrategicDevelopmentDepartmentinShenzhenOCTCo.,Ltd.,GeneralManageroftheStrategicPlanningDepartmentinOCTGroup,GeneralManageroftheCorporateManagementDepartmentinOCTGroup,andDirectoroftheCorporateManagementDepartmentinShenzhenOCTCo.,Ltd..Currently,heservesasExecutiveDeputyGeneralManagerofOCTWestInvestmentCo.,Ltd.,ChairmanandGeneralManagerofXi’anOCTIndustryCo.,Ltd.,ChairmanandGeneralManagerofXi’anQujiangOCTInvestmentDevelopmentCo.,Ltd.,GeneralManagerofXi’anOCTLandCo.,Ltd.,GeneralManagerofXi’anFengdongOCTDevelopmentCo.,Ltd.,DirectorofOCT(HK)Co.,Ltd.,Non-ExecutiveDirectorofOCT(Asia),ChairmanofOCT(Beijing)BusinessManagementCo.,Ltd.,ViceChairmanofHuawanHealthyIndustryDevelopmentCo.,Ltd.,DirectorofOCT(Yunnan)InvestmentCo.,Ltd.andDirectorofKonkaGroup.ZhouBin,male,bornin1979,wasthedirectorandpresidentoftheCompanywithabachelordegree.Heonceservedasthedirectorassistant,deputydirectoranddirectorinOperatingManagementCenterinKonkaGroup,assistantofthepresidentintheBoardofDirectorsand
DirectorinOperatingManagementCenterandothers.Now,heactsasthedirectorandpresidentinKonkaGroup.2.IndependentDirectorSunShengdian,amalesenioreconomist,bornin1955,wastheindependentdirectoroftheCompanywithadoctordegreeinengineering.FormerlyviceGM,deputysecretaryofthePartycommittee,GMandpresidentofShenzhenSEG,HitachiColorDisplayDevicesCo.,Ltd.,president,secretaryofPartyCommitteeofShenzhenSEGGroupCo.,Ltd.directorofShenzhenChinaStarOptoelectronicsTechnologyCo.,Ltd.,independentdirectorofSkyworthHoldingLtd.,andtheheadofShenzhenElectronicsIndustriesAssociation.Now,heservesasthevicepresidentofShenzhenHuakongSEGCo.,Ltd.,thedirectorofChinaVankeCo.,Ltd,andindependentdirectorofKonkaGroup.WangShuguang,IndependentDirector,male,wasbornin1971,PhDineconomics,professoranddoctoralsupervisor.HeservedasIndependentDirectorofYantaiRuralCommercialBank,JinanRuralCommercialBank,NingboYuyaoRuralCommercialBankandSDICZhonglu,andExternalSupervisorandConveneroftheBoardofSupervisorsofIndustrialBankCo.,Ltd.Currently,heservesasProfessorandDoctoralSupervisorintheSchoolofEconomicsofPekingUniversity,ExecutiveDeputyDirectoroftheInstituteforCulturalIndustries,PekingUniversityandIndependentDirectorofKonkaGroup.DengChunhua,IndependentDirector,female,ethnicgroupofHan,bornin1963,MBA,professorandmaster’ssupervisorofaccounting,CertifiedPublicAccountantinChina(non-practicingmember).SheservedasChiefAccountantandProjectManagerofWUYIGECertifiedPublicAccountsLLP,ZhongnanUniversityofEconomicsandLaw,MemberoftheFifthSessionoftheCorporateSpecialCommitteeoftheChineseAssociationofQuantitativeEconomicsandMemberoftheProfessionalJuryCommitteeofHubeiAdministrationofSport.FromJuly1984tillnow,shehasbeenteachingintheSchoolofAccountingofZhongnanUniversityofEconomicsandLawasAssistantLecturer,Lecturer,AssociateProfessorandProfessor.Currently,sheservesasIndependentDirectorofJiangsuPomleadCo.,LtdandIndependentDirectorofKonkaGroup.3.SupervisorWangYoulai,amaleengineer,bornin1961,wasthechairmanoftheSupervisoryCommitteeoftheCompanywithadoctordegree.HeformerlyworkedasthebusinessmanageroftheQualityDepartmentinKonkaGroup,assistantGM,viceGM,andvicepresidentofKonkaGroup,DeputyDirectorandDirectoroftheAdministrationDepartmentofOverseasChineseTownEnterpriseCo.,andjointpartysecretaryofGeneralHeadquarters.PresentlyheisworkingasjointpartysecretaryofGeneralHeadquartersinOverseasChineseTownEnterprisesCo.anddirectorofShenzhenGuangmingGroupCo.,LtdandOCT(Hainan)GroupCo.,Ltd,andthechairmanoftheSupervisoryCommitteeofKonkaGroup.YangGuobin,Supervisor,male,wasbornin1969,Bachelor’sDegree,CertifiedPublicAccountant.HeservedasDeputyDirectoroftheFinanceDepartmentofOCTGroup,CFOofKonkaGroupandDeputyDirectoroftheCorporateManagementDepartmentofOCTGroup.Currently,heservesasafull-timeDirectorinOCTGroup,DirectorofShenzhenGuangmingGroupandSupervisorof
KonkaGroup.LiJun,male,bornin1971,memberofCommunistParty,wasanemployeesupervisoroftheCompanywithabachelordegree.FormerlyworkedasthefinancialmanagerofNanchangBranchofTelecommunicationsTechnologyCo.,Ltd.,SeniorManageroftheFinancialDepartmentinTelecommunicationsTechnologyCo.,Ltd.,theSeniorManagerandassistanttothechiefanddeputydirectorofAuditingandLegalAffairsDepartmentinKonkaGroup,leaderofdisciplineinspectioncommissionofKonkaGroup,andemployeesupervisorofthe8
th
SupervisoryCommitteeofkonkaGroup.Presentlyworkingasthefull-timedeputysecretaryofdisciplineinspectioncommissionofKonkaGroup,thedirectorofDisciplineinspectionandSupervisionCenter,vicechiefoftheAuditingandLegalAffairsDepartment,GMoftheInternalControlandRiskManagementDepartment.4.SeniorExecutiveZhouBin,male,bornin1979,wasthedirectorandpresidentoftheCompanywithabachelordegree.Heonceservedasthedirectorassistant,deputydirectoranddirectorinOperatingManagementCenterinKonkaGroup,assistantofthepresidentintheBoardofDirectorsandDirectorinOperatingManagementCenterandothers.Now,heactsasthedirectorandpresidentinKonkaGroup.HeJianjun,amaleeconomist,Hannationality,bornin1969,wasthevicepresidentoftheCompanywithabachelordegree.HehasservedsuccessfullyasDeputyChiefofSecretariatoftheBoard,DeputyChiefandChiefofStrategicDevelopmentDept.andSecretarytotheBoardaswellasvicepresidentinKonkaGroup,etc.HenowisactingasVicePresidentofKonkaGroup.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,GMinFinancialCenterandGMinAssetSettlementCenterandothers,nowheactsastheCFOinKonkaGroup.YangBo,male,Hannationality,bornin1970,wasthevicepresidentoftheCompanywithamaster
degree.OnceservedasthedirectorinShenzhenCableTelevisionEducationFinancialChannel,directorinthemarketsalesandsupportregionofUSTailiyangCommunicationsCompany,GMinProgramOperatingDepartmentinShenzhenTopwayVideoCommunicationCo.,Ltd.,directorandGMinShenzhenTianhuaCenturyMediaCo.,Ltd.,GMinMarketSalesCenterinShenzhenTopwayVideoCommunicationCo.,Ltd.andothers,heactsasthevicepresidentinKonkaGrouppresently.CaoShiping,male,Hannationality,bornin1978,wasthevicepresidentoftheCompanywithamasterdegree.OnceservedastheGMinJinzhouBranchandTianjinBranchofKonkaGroupMulti-media,GMinMulti-mediaBusinessDivisionCustomerCooperationDepartment,viceGMinMulti-mediaMarketingBusinessDivision,viceGMinMulti-mediaBusinessDivisionandGMinMarketingCenter,GMinMulti-mediaBusinessDivision,GMinInternetBusinessDivisionandothers,heactsasthevicepresidentinKonkaGroup.SunQingyan,amalesenioreconomist,Hannationality,bornin1972,wasthevicepresidentoftheCompanywithadoctordegree.OnceservedasthetutorinNortheastUniversityofFinanceandEconomies,viceGMinShenzhenHuaixinEnterpriseInvestmentConsultingCo.,Ltd.,CEOinShenzhenXinhengLidaCapitalManagementCo.,Ltd.,viceGMinShanyingInvestmentManagementCo.,Ltd.,GMinShenzhenShenwoAssetManagementCo.,Ltd.andothers,henowactsasthevicepresidentofKonkaGroup.Officesheldconcurrentlyinshareholdingentities:
√Applicable□Notapplicable
Name
| Name | Shareholdingentity | Officeheldintheshareholdingentity | Startoftenure | Endoftenure | Remunerationorallowancefromtheshareholdingentity |
| LiuFengxi | OCTEnterprisesCo. | PartyCommitteeStandingCommitteeandviceGM | 22February2016 | Yes | |
| HeHaibin | OCTEnterprisesCo. | PartyCommitteeStandingCommittee,BoardSecretary,andchiefaccountant | 30January2018 | Yes | |
| ShenzhenOCTCapitalInvestmentManagementCo.,Ltd | ChairmanoftheBoard | 8February2018 | |||
| OCT(Yunnan)InvestmentCo.,Ltd | Director | 18December2018 | |||
| OverseasChineseCity(Asia)HoldingCo.,Ltd. | Executivedirector | 5JUN2017 | |||
| Zhang | OverseasChineseTown(Asia) | Non-executivedirector | 30March2017 | Yes |
Jing
| Jing | HoldingsLimited | ||||
| OCT(Beijing)BusinessManagementCo.,Ltd. | ChairmanoftheBoard | 31March2017 | |||
| OCT(Yunnan)InvestmentCo.,Ltd | Director | 18January2018 | |||
| OCTWestInvestmentCo.,Ltd. | DeputyGeneralManager | 14March2019 | |||
| Xi’anOCTIndustryCo.,Ltd. | ChairmanoftheBoard,GM | 14March2019 | |||
| Xi’anQujiangOCTInvestmentDevelopmentCo.,Ltd. | ChairmanoftheBoard,GM | 14March2019 | |||
| Xi’anOCTLandCo.,Ltd | GM | 14March2019 | |||
| Xi’anFengdongOCTDevelopmentCo.,Ltd | GM | 14March2019 | |||
| HuawanHealthIndustryDevelopmentCo.,Ltd. | ViceChairman | 21September2018 | |||
| WangYoulai | OCTEnterprisesCo. | Full-timedirector | 7March2018 | Yes | |
| ShenzhenGuangmingGroupCo.,Ltd | Director | 25April2018 | |||
| OCT(Hainan)GroupCo.,Ltd | Director | 29May2018 | |||
| YangGuobin | OCTEnterprisesCo. | Full-timedirectorinBoardOffice | 7March2018 | Yes | |
| Notes | 1.Excepttheabovesituation,otherdirectors,supervisorsandseniormanagementdidn’tholdanypositionintheshareholders’units.2.ItisunknowntheendingdateofthepostsofMr.LiuFengxi,Mr.HeHaibin,Mr.ZhangJing,Mr.WangYoulai,andMr.yangGuobinheldintheshareholders’units. | ||||
Officesheldconcurrentlyinotherentities:
√Applicable□Notapplicable
| Name | Otherentity | Officeheldintheentity | Startoftenure | Endoftenure | Remunerationorallowancefromtheentity |
| SunShengdian | ShenzhenHuakongSEGCo.,Ltd | Vicepresident | 8April2013 | ||
| SunShengdian | ChinaVankeCo.,Ltd | Director | 30June2018 | Yes | |
| WangShuguang | SchoolofEconomicsofPekingUniversity | Professor | Yes | ||
| WangShuguang | InstituteforCulturalIndustriesofPekingUniversity | Deputydirector | |||
| DengChunhua | ZhongnanUniversityofEconomicsandLaw | Professor | Yes |
DengChunhua
| DengChunhua | JiangsuPomleadCo.,Ltd | Independentdirector |
Punishmentsimposedintherecentthreeyearsbythesecuritiesregulatorontheincumbentdirectors,supervisorsandseniormanagementaswellasthosewholeftintheReportingPeriod:
□Applicable√NotapplicableIVRemunerationofDirectors,SupervisorsandSeniorManagementDecision-makingprocedure,determinationbasisandactualpaymentsofremunerationfordirectors,supervisorsandseniormanagement:
1.ThesalaryofdirectorsandsupervisorsoftheCompanyshouldbesubmittedtotheshareholdersmeetingforreviewaftertheapprovalandconsentbytheBoardofdirectors.ReferredtothesalaryleveloftheDirectorsandSupervisorofthedomesticlistedcompaniesofsameindustry,thesalaryproposaloftheDirectorandSupervisorsoftheCompanywhichapprovedandreviewedbythe2
nd
ExtraordinaryGeneralMeetingof2015wereasfollows:(1)thebasicannualsalarystandardoftheBoardChairmanwasofRMB1.2million,thesubsidystandardofotherDirectors(excludingtheDirectorsservingintheCompany)wasofRMB0.3millionperpersonperyearandthesubsidystandardoftheSupervisors(excludingtheEmployeeSupervisors)wasofRMB0.2millionperpersonperyear;whichwasexecutedsinceJune2015.(2)theabovestandardswereallpre-taxstandardwiththeindividualincometaxburdenedinpersonaswellastheCompanywithheldandremittedtax.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 | 47 | Incumbent | 7.21 | Yes |
| HeHaibin | Director | Male | 45 | Incumbent | 0 | No |
ZhangJing
| ZhangJing | Director | Male | 37 | Incumbent | 0 | Yes |
| ZhouBin | Directorandpresident | Male | 40 | Incumbent | 395.24 | Yes |
| SunShengdian | Independentdirector | Male | 64 | Incumbent | 7.5 | No |
| WangShuguang | Independentdirector | Male | 48 | Incumbent | 2.5 | No |
| DengChunhua | Independentdirector | Female | 56 | Incumbent | 2.5 | No |
| WangYoulai | ChairmanoftheSupervisoryCommittee | Male | 58 | Incumbent | 0 | Yes |
| YangGuobin | Supervisor | Male | 50 | Incumbent | 0 | Yes |
| LiJun | Employeesupervisor | Male | 48 | Incumbent | 105.49 | No |
| HeJianjun | Vicepresident | Male | 49 | Incumbent | 236.13 | No |
| LiHongtao | Vicepresident | Male | 51 | Incumbent | 228.64 | No |
| WuYongjun | Boardsecretary | Male | 44 | Incumbent | 236.20 | No |
| LiChunlei | CFO | Male | 46 | Incumbent | 216.63 | No |
| YangBo | Vicepresident | Male | 49 | Incumbent | 189.86 | No |
| CaoShiping | Vicepresident | Male | 41 | Incumbent | 251.37 | No |
| SunQingyan | Vicepresident | Male | 47 | Incumbent | 171.15 | No |
| JinQingjun | Director | Male | 62 | Former | 27.5 | No |
| XiaoZuhe | Independentdirector | Male | 53 | Former | 27.5 | Yes |
| ZhangShuhua | Independentdirector | Male | 54 | Former | 27.5 | No |
| HaoGang | ChairmanoftheSupervisoryCommittee | Male | 46 | Former | 0 | No |
| Total | 2132.92 |
Equityincentivesfordirectors,supervisorsandseniormanagementintheReportingPeriod:
□Applicable□NotapplicableVEmployees1.Number,FunctionsandEducationalBackgroundsofEmployees
| Numberofin-serviceemployeesoftheCompanyastheparent | 1,826 |
| Numberofin-serviceemployeesofmajorsubsidiaries | 17,139 |
Totalnumberofin-serviceemployees
| Totalnumberofin-serviceemployees | 18,965 |
| TotalnumberofpaidemployeesintheReportingPeriod | 18,965 |
| NumberofretireestowhomtheCompanyastheparentoritsmajorsubsidiariesneedtopayretirementpensions | 0 |
| Functions | |
| Function | Employees |
| Production | 9,286 |
| Sales | 6,106 |
| Technical | 1,467 |
| Financial | 680 |
| Administrative | 1,426 |
| Total | 18,965 |
| Educationalbackgrounds | |
| Educationalbackground | Employees |
| Masterandabove | 164 |
| Bachelor | 2,592 |
| Juniorcollege | 7,133 |
| Highschoolandbelow | 9,076 |
| Total | 18,965 |
2.EmployeeRemunerationPolicy
TheCompanypromulgateditsremunerationsystemwiththeoperatingstrategyofservingfortheenterprisedevelopmentandenhancement,andtheprincipleofdecidingtheremunerationaccordingtothepost,businessperformanceandcapabilities,aswellasthemarketcompetitivenessandinternalfairness.Anditdecidedtheemployee’sremunerationlevelaccordingtoitsbusinessearnings,thepostsandfulfillmentofthebusinessperformanceoftheemployee.
3.EmployeeTrainingPlans
TheCompanyadheredtothepeople-orientedandpaidspecialattentiontocultivatethetalents.Surroundedbythebusinessdevelopmentandtheconstructionoftalentteam,theCompanyactivelyorganizedandcarriedoutvarioustrainingactivities,andcontinuouslyperfecteditstalentscultivationsystem,aswellasfurtherenhancedtheemployee’sprofessionalskillsandoverallquality,soastostrengthentheconstructionofmanagementtalents,professionaltalentsandtechnicaltalentsteams.In2018,guidedbyclosingtothebusinessneeds,theCompanycentralizedthesuperiorresourcesto
promotethecultivationofkeytalents.Anditorganizedandcarriedouttheopenclassprojectforalltheemployees,andorganizedandcarriedoutthenewemployee’straining&cultivationprojectsrespectivelyforthegraduatesfromcampusrecruitingandpersonnelfromsocialrecruitment.Meanwhile,itcentralizedtoorganizethepointedthetrainingprojectsofgeneralmanagementskillsandpostprofessionalknowledge,etcforthepersonnelfrommarketing,R&D,manufacturing,financialandhumanresourcessystems,soastobettercompleteitsannualtrainingplan.4.LaborOutsourcing□Applicable√Notapplicable
PartIXCorporateGovernance
IGeneralInformationofCorporateGovernanceIntheReportingPeriod,strictlyinaccordancewiththeCompanyLaw,SecuritiesLawofthePRC,CodeofCorporateGovernanceforListedCompanies,ShareListingRulesofShenzhenStockExchangeandtherelevantrulesandregulationsoftheCSRC,theCompanytimelyamendedtheinternalcontrolsystemssuchastheArticlesofAssociationandAdministrativeMethodonProvisionofExternalFinancialAidsaswellasManagementSystemonInvestorsRelationship,continuouslyperfectedthecorporategovernancestructureandstandardizedtheCompany’soperation.BytheendoftheReportingPeriod,theactualconditionsofcorporategovernancebasicallymettherequirementsoftheregulatorydocumentsinrespectofcorporategovernancestructureoflistedcompaniesissuedbyCSRC.(I)ShareholdersandtheShareholders’GeneralMeetingTheCompanydrewupArticlesofAssociationandRulesforProcedureofShareholders’GeneralMeeting,ensuredthatallshareholders,inparticularmediumandminorshareholders,enjoylegalrightsandequalstandard.IntheReportingPeriod,theCompanywasabletopublishannouncementonShareholders’GeneralMeetingsinadvance,convenedShareholders’GeneralMeetingwithstrictlyaccordancetorelevantrequirements,soastoenabletheshareholdershavetheirrightsofinformationtotheCompany’smaterialissuesandtheparticipationrights.In2018,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.(III)DirectorsandtheBoardofDirectors
ThenumberandstructureoftheBoardBureauoftheCompanywereincompliancewithlawsandregulations.TheCompanydrewupRulesforProceduresoftheBoardBureau,soastoensureahighefficientoperationandscientificdecision-makingoftheBoardBureau;theCompanyhassetupIndependentDirectorSystemandengagedthreeindependentdirectors.IntheReportingPeriod,thenumberofdirectorsandcompositionoftheBoardofDirectorsoftheCompanyaswellastheprocedureofselectionwasinaccordancewiththerequirementsoftherulesandlawsaswellasArticlesofAssociation.TheCompanysetupfourspecialcommittees,whichwereFinancialAuditCommittee,NominationCommittee,Remuneration&AppraisalCommittee,StrategyCommitteetoprovideprofessionopinionforthedecisionoftheBoardofDirectors.Allthedirectorscarriedouttheirwork,fulfilledtheirdutiesandscrupulouslyattendedtheBoardsessionsinaccordancewithRulesofProcedurefortheBoardofDirectors,RulesforIndependentDirectors,etc.15BoardsessionswereconvenedbytheCompanyduringtheReportingPeriod,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,promotedtheenvironmentalprotection,andactivelyjoinedinthesocialbenefitandcharitable
causesoastojointlypromotesustainableandhealthydevelopment.(VII)InformationdisclosureandtransparencyTheCompanyformulatedtheManagementSystemforInvestorRelationsandtheManagementSystemforInformationDisclosureandtheRulesonImplementationforInformationDisclosureCommittee.AndtheCompanydesignatedspecially-assignedpersontotakechargeoftheinformationdisclosure,anddesignatedspecializeddepartmenttoberesponsibleforthereceptionofshareholdersandconsultation,activelycarryingouttheworkforinvestorrelationsmanagementtoensureequalaccesstoinformationforallshareholders.TheCompanystrictlycompliedwiththerequirementsofthelaws,regulationsandtheArticlesofAssociationtodiscloseitsinformationasrequiredbytherelevantregulationsonantimely,honest,completeandaccuratebasis,toensuretheaccurateandtimelyinformationdisclosure,whileensureequalaccesstoinformationforallshareholders.(VIII)Non-standardgovernance1.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,formulationandimplementationofregistrationandmanagementsystemfortheinsiderofinsideinformation1.EstablishmentandperfectionofmanagementsystemfortheinsiderofinsideinformationTofurtherstandardizethecompany’sinsideinformationmanagementbehavior,strengthenthecompany’sinsideinformationconfidentialwork,andmaintainthefairprincipleofinformation
disclosure,thecompanyestablishedInsideInformationandInsiderManagementSysteminKonkaGroupCo.,Ltd.Thecompanystrictlyimplementsthesystemintheinformationdisclosurework,meanwhile,carefullyimplementsthecompany’sinsideinformationandinsiderregistrationandmanagementmethod,registerstheinsiderofinsideinformation,andreporttoShenzhenStockExchangeandShenzhenSecurityRegulatoryBureauaccordingtotheprovision.Thecompanyconductedthespecialinspectionontheinsideinformationmanagementduringtheoccurrenceofmajoreventin2018andtheannualreportin2018.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.Thecompanyconductedthespecialinspectionontheinsideinformationreportingstatusduringtheoccurrenceofmajoreventin2018andtheannualreportin2018.Aftertheinspection,thecompany’sinsideinformationreportingstatuscomplieswiththerequirementsinInsideInformationReportingManagementSystem.InsideInformationReportingManagementSystemwasimplementedinplaceandcontrolledeffectively.IndicatebytickmarketwhetherthereisanymaterialincompliancewiththeregulatorydocumentsissuedbytheCSRCgoverningthegovernanceoflistedcompanies.□Yes√NoNosuchcasesintheReportingPeriod.IITheCompany’sIndependencefromItsControllingShareholderinBusiness,Personnel,Asset,OrganizationandFinancialAffairsDuringtheReportingPeriod,thecompanywasfullyseparatedfromthecontrollingshareholdersintermsofbusiness,staff,assets,organs,andfinance,whichownedindependentlegalrepresentativeandmainstatusinmarketcompetitionandhadindependentaccounting,aswellaspossessedcompletebusinessandtheabilityofindependentoperationtofacethemarket.
(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√NotapplicableIVAnnualandSpecialGeneralMeetingsConvenedduringtheReportingPeriod1.GeneralMeetingConvenedduringtheReportingPeriod
Meeting
| Meeting | Type | Investorparticipationratio | Dateofthemeeting | Disclosuredate | Indextodisclosedinformation |
| The2017AnnualGeneralMeeting | AnnualGeneralMeeting | 32.80% | 23April2018 | 24April2018 | /http://www.cninfo.com.cn/new/index |
| The1stExtraordinaryGeneral | Extraordinary | 2.52％ | 3May2018 | 4May2018 |
Meetingof2018
| Meetingof2018 | GeneralMeeting | |||
| The2ndExtraordinaryGeneralMeetingof2018 | ExtraordinaryGeneralMeeting | 32.85％ | 7June2018 | 8June2018 |
| The3rdExtraordinaryGeneralMeetingof2018 | ExtraordinaryGeneralMeeting | 24.30% | 8October2018 | 9October2018 |
| The4thExtraordinaryGeneralMeetingof2018 | ExtraordinaryGeneralMeeting | 32.71% | 3December2018 | 4December2018 |
2.SpecialGeneralMeetingsConvenedattheRequestofPreferredShareholderswithResumedVotingRights□Applicable√NotapplicableVPerformanceofDutybyIndependentDirectorsintheReportingPeriod1.AttendanceofIndependentDirectorsatBoardMeetingsandGeneralMeetings
| Attendanceofindependentdirectorsatboardmeetingsandgeneralmeetings | |||||||
| Independentdirector | Totalnumberofboardmeetingstheindependentdirectorwaseligibletoattend | Boardmeetingsattendedonsite | Boardmeetingsattendedbywayoftelecommunication | Boardmeetingsattendedthroughaproxy | Boardmeetingstheindependentdirectorfailedtoattend | Theindependentdirectorfailedtoattendtwoconsecutiveboardmeetings(yes/no) | Generalmeetingsattended |
| SunShengdian | 15 | 5 | 10 | 0 | 0 | No | 2 |
| XiaoZuhe | 13 | 4 | 9 | 0 | 0 | No | 0 |
| ZhangShuhua | 13 | 4 | 9 | 0 | 0 | No | 0 |
| WangShuguang | 2 | 1 | 1 | 0 | 0 | No | 0 |
| DengChunhua | 2 | 1 | 1 | 0 | 0 | No | 0 |
Whyanyindependentdirectorfailedtoattendtwoconsecutiveboardmeetings:
Notapplicable.2.ObjectionsRaisedbyIndependentDirectorsonMattersoftheCompanyIndicatebytickmarkwhetheranyindependentdirectorsraisedanyobjectionsonanymatterofthe
Company.□Yes√NoNosuchcasesintheReportingPeriod.3.OtherInformationaboutthePerformanceofDutybyIndependentDirectorsIndicatebytickmarkwhetheranysuggestionsfromindependentdirectorswereadoptedbytheCompany.√Yes□NoSuggestionsfromindependentdirectorsadoptedornotadoptedbytheCompany:
DuringtheReportingPeriod,theIndependentDirectorsoftheCompanyvigorouslyattendedtherelevantmeetings,carefullyreviewedeachproposal,objectivelystatedtheirownviewsandopinions,knewoftheR&DprogressandtheoperatingsituationoftheCompany,theexecutionsituationoftheinternalcontrolconstructionandtheresolutionsofthemeetingsoftheBoardofDirectorsandaswellastheAnnualGeneralMeeting.Astheexpertoftheinvolvedeachfield,theIndependentDirectorsputforwardtheconstructiveadvicesbyuseoftheirownprofessionalknowledgetowardstheinternalmanagement,including:tostrengthenthebusinessprocessmanagement,tostrengthentheresearchesonthecutting-edgetechnologyofthecolorTVandtostrengthenthecashflowandtheaccountsreceivablemanagementandsoon.TheCompanycarefullyadoptedtheadvicesfromtheIndependentDirectorsandconstantlyimprovedandenhancedthemanagementleveloftheCompany.VIPerformanceofDutiesbySpecializedCommitteesundertheBoardduringthisReportingPeriod(I)SummaryReportonthePerformanceoftheAuditCommitteeSubjecttotheBoardofDirectorsTheCompanyhadconstitutedtheWorkRulesfortheFinancialAuditCommitteeundertheBoardwhichillustratedtheexactpersonnel,obligationsandrightsandworkingprocessofannualreportoftheFinancialAuditCommitteeundertheBoard.In2018,basedontheprincipleoffaithfulness,themajorexecutionsituationsoftheFinancialAuditCommitteeundertheBoardwereasfollows:
1.ReviewedfinancialstatementsofAnnualReport2017,FirstQuarterReport2018,InterimReport2018,andtheThirdQuarterReport2018,andhadnoobjectiontotheaforesaidfinancialstatements.2.SubmittedtheProposalonHiringCPAin2018totheBoardon29March2018inwhichproposingtocontinuetohireRuihuaCPAastheauditinstitutionoffinancialstatementsoftheCompanyin2018.3.DuringthepreparationofAnnualReport2018,theCompanyfulfilledthefollowingduties:
(1)IssuedtheNotesoftheEventssuchastheAuditWorkArrangementoftheFinanicalAuditCommitteeandapprovedthearrangementfor2018annualauditingoftheCompany;
(2)IssuedAuditOpinionoftheFinancialAuditCommitteeonFinancialAccountingStatementsPreparedbytheCompanybeforeCPAs’entryofAudit;(3)CommunicatedandexchangedideaswiththeCPAsresponsibleforannualauditingontheproblemsoccurringduringtheauditing;(4)IssuedAuditOpiniononFinancialAccountingStatementsoftheCompanyafterCPAsIssuedthePreliminaryAuditOpinion;(5)IssuedSummaryReporton2018AnnualAuditingbyRuihuaCertifiedPublicAccountants;(6)SubmittedtheResolutionofthe2018AnnualFinancialStatementoftheCompanytotheBoard;(7)SubmittedtheResolutionofengagementoftheCPAsin2019totheBoard;4.In2018,accordingtotheauthorizationoftheBoardofDirectors,theFinancialAuditCommitteeacceptedthereportontheworkoftheCompany’sInternalAuditingDepartmentandcarriedoutmanagementovertheInternalAuditingDepartmentoftheCompanyanditswork.(II)SummaryReportonthePerformanceoftheRemunerationandAppraisalCommitteeSubjecttotheBoardofDirectorsTheCompanyhadconstitutedtheWorkRulesfortheRemunerationandAppraisalCommitteeundertheBoardwhichillustratedtheexactpersonnel,obligationsandrightsoftheRemunerationandAppraisalCommitteeundertheBoard.InY2018,basedontheprincipleoffaithfulness,themajorexecutionsituationsoftheRemunerationandAppraisalCommitteeundertheBoardwereasfollows:
1.On8August2018,theRemunerationandAppraisalCommitteesubjecttotheBoardofDirectorssubmittedtheAuditOpinionontheRewardPlanningfortheManagementoftheCompanyin2017totheBoard.2.DuringthepreparationofAnnualReport2018,theRemunerationandAppraisalCommitteesubjecttotheBoardofDirectorsissuedtheAuditOpinionontheDisclosedRemunerationSituationoftheDirectors,SupervisorsandSeniorExecutivesoftheCompany,whichconsideredtheconditionoftheremunerationoftheDirectors,SupervisorsandSeniorExecutivesoftheCompanydisclosedinthe2018AnnualReportwasverified.ThedisclosedremunerationsituationoftheDirectors,SupervisorsandSeniorExecutivesoftheCompanymetwiththeremunerationmanagementsystemwithoutanysituationthatviolatedtheremunerationmanagementsystemoftheCompany.(III)SummaryReportonthePerformanceoftheNominationsCommitteeSubjecttotheBoardofDirectorsTheCompanyhadconstitutedtheWorkRulesfortheNominationsCommitteeundertheBoardwhichillustratedtheexactpersonnel,obligationsandrightsoftheNominationsCommitteeundertheBoard.Inlinewiththeprincipleofdiligenceandresponsibility,thenominatingcommitteeoftheboardofdirectorsofthecompanysubmittedthe"examinationandapprovalopinionson
candidatesforthegeneralelectionoftheboardofdirectors"totheboardofdirectorsonNovember15,2018,andsubmittedthecandidatesforthenewgeneralelectionoftheboardofdirectorstotheboardofdirectorsfordiscussion.(IV)SummaryReportonthePerformanceoftheStrategyCommitteeSubjecttotheBoardofDirectorsTheCompanyhadconstitutedtheWorkRulesfortheStrategyCommitteeundertheBoardwhichillustratedtheexactpersonnel,obligationsandrightsoftheStrategyCommitteeundertheBoard.On16April2018,theStrategyCommitteesubjecttotheBoardofDirectorsissuedAuditopinionofOverallStrategicPlanningofKonkaGroupafterdiscussion,andsubmittedittoBoardMeetingfordiscussionVIIPerformanceofDutybytheSupervisoryCommitteeIndicatebytickmarkwhethertheSupervisoryCommitteefoundanyrisktotheCompanyduringitssupervisionintheReportingPeriod.□Yes√NoTheSupervisoryCommitteeraisednoobjectionsintheReportingPeriod.VIIIAppraisalofandIncentiveforSeniorManagementInordertoenabletheseniormanagementstaffsoftheCompanygivebetterperformanceoftheirduties,andclarifytheirrightsandobligations,theCompanyestablishedandimprovedafair,transparentandefficientPerformanceAppraisalStandardandIncentive&RestraintMechanismfortheseniormanagementstaffs.TheCompanyassessedthedutyperformanceandcompletionofbusinessofseniormanagementstaffsintermsofprofessionalskills,managementlevelandjobperformance;tookthesalaryplusbonusasamainincentiveway,toimprovetheincentiveofseniormanagement.TheseniormanagementstaffwasappraisedbytheBoardofDirectors,whichwassupervisedbytheSupervisoryCommittee.IXInternalControl1.MaterialInternalControlWeaknessesIdentifiedfortheReportingPeriod□Yes√No2.InternalControlSelf-EvaluationReport
Disclosuredateoftheinternalcontrolself-evaluationreport
| Disclosuredateoftheinternalcontrolself-evaluationreport | 30March2019 |
| Indextothedisclosedinternalcontrolself-evaluationreport | http://www.cninfo.com.cn/new/index |
| Evaluatedentities’combinedassetsas% | 90.00% |
ofconsolidatedtotalassets
| ofconsolidatedtotalassets | ||
| Evaluatedentities’combinedoperatingrevenueas%ofconsolidatedoperatingrevenue | 90.00% | |
| Identificationstandardsforinternalcontrolweaknesses | ||
| Type | Weaknessesininternalcontroloverfinancialreporting | Weaknessesininternalcontrolnotrelatedtofinancialreporting |
| Naturestandard | Thosewiththefollowingcharacteristicsshouldberecognizedasgreatdefect:(1)foundoutthereweremalpracticesoftheDirectors,SupervisorsandSeniorExecutivesoftheCompanythatformedsignificantinfluencesonthefinancialreport;(2)theCompanyrevisedthepublishedfinancialreportandrevisedthegreatmisstatementscausedbythemalpracticesorthemistakes;(3)CPAfoundouttherewasgreatmisstatementofthecurrentfinancialreportwhiledidn’tfoundduringtheoperatingprocessoftheinternalcontrol;(4)thesupervisionoftheinternalcontrolbytheFinanceAuditCommitteeandtheinternalauditinstitutionoftheCompanywasinvalid;(5)notyetrevisedthegreatdefectafterthereasonableperiodaswhichwasdiscoveredamongtheinternalcontrolassessment;(6)thesignificantbusinesslackedofsystematiccontrolorthesystematiccontrolwasinvalid..Thosewiththefollowingcharacteristicsshouldberecognizedassignificantdefect:(1)notyetchosenorappliedtheaccountingpolicesaccordingtothegenerallyacceptedaccountingstandards;(2)notyetconstructedtheanti-spamprocessorcontrolmeasures;(3)asfortheaccountsdisposaloftheunconventionalorspecialtransactions,therewasnocorrespondingcontrolmechanismorexecutionortheexistenceofthecorrespondingsupplementcontrol;(4)therewasoneormultipledefectsduringthecontrolofthecompile | Thefollowingsignsindicatedtheremayexistgreatdefectamongtheinternalcontrolofthenon-financialreport;(1)theoperatingactivitiesoftheenterprisesseriouslyviolatedthenationallawsandregulations;(2)negativenewsfrequentlydisclosedbythemediawhichcausedsignificantharmtotheCompany’sreputation;(3)thecoremanagementteamlefttheirpositionsoneafteranotherortheoutflowofthekeypositionpersonnelwasserious;(4)significantbusinesslackedofsystematiccontrolofthesystemwasinvalid;(5)greatdefectdiscoveredamongtheinternalcontrolassessmentnotyetberevisedintime.Thefollowingsignsindicatedtheremayexistsignificantdefectamongtheinternalcontrolofthenon-financialreport:(1)negativenewsoccurredratherfrequentlywhichcausedratherbigharmtotheCompany’sreputation;(2)theoutflowofthekeypositionpersonnelwasratherserious;(3)therewasobviousdefectamongthecontrolsystemofthesignificantbusiness;(4)thesignificantdefectfoundamongtheinternalcontrolassessmentnotyetberevisedintime.3.Otherdefectsfromtheinternalcontrolhadn’treachedtherecognitionstandardsofthegreatdefectorsignificantdefect,shouldberecognizedasgeneraldefect. |
ofthefinancialreportattheperiod-endandcouldnotreasonableguaranteethestatementofthecompiledfinancialreportreachtherealandaccuratetarget;(5)notyetrevisedthesignificantdefectafterthereasonableperiodaswhichwasdiscoveredamongtheinternalcontrolassessment.3.Otherdefectsfromtheinternalcontrolhadn’treachedtherecognitionstandardsofthegreatdefectorsignificantdefectshouldberecognizedasgeneraldefect.
| ofthefinancialreportattheperiod-endandcouldnotreasonableguaranteethestatementofthecompiledfinancialreportreachtherealandaccuratetarget;(5)notyetrevisedthesignificantdefectafterthereasonableperiodaswhichwasdiscoveredamongtheinternalcontrolassessment.3.Otherdefectsfromtheinternalcontrolhadn’treachedtherecognitionstandardsofthegreatdefectorsignificantdefectshouldberecognizedasgeneraldefect. | ||
| Quantitativestandard | Greatdefect:potentialmisstatementamount≥1%ofthegrossprofitmarginofthe2018consolidatedfinancialreportoftheCompany;significantdefect:0.5%ofthegrossprofitmarginofthe2018consolidatedfinancialreportoftheCompany≤potentialmisstatementamount＜1%ofthegrossprofitmarginofthe2018consolidatedfinancialreportoftheCompany;generaldefect:potentialmisstatementamount＜0.5%ofthegrossprofitmarginofthe2018consolidatedfinancialreportoftheCompany. | Implementinaccordancewiththequantitativecriteriaofinternalcontroldefectevaluationinfinancialstatements |
| Numberofmaterialweaknessesininternalcontrolnotrelatedtofinancialreporting | 0 | |
| Numberofseriousweaknessesininternalcontroloverfinancialreporting | 0 | |
| Numberofseriousweaknessesininternalcontrolnotrelatedtofinancialreporting | 0 | |
XIndependentAuditor’sReportonInternalControl√Applicable□Notapplicable
| Opinionparagraphintheindependentauditor’sreportoninternalcontrol | |
| Weconsideredthat,inallthesignificantaspects,KonkaGroupmaintainedefficientinternalcontrolofthefinancialreportaccordingtotheC-SOXandtherelevantregulationson31December2018. | |
| Independentauditor’sreportoninternalcontroldisclosedornot | Disclosed |
| Disclosuredate | 30March2019 |
Indextosuchreportdisclosed
| Indextosuchreportdisclosed | http://www.cninfo.com.cn/new/index |
| Typeoftheauditor’sopinion | Unmodifiedunqualifiedopinion |
| Materialweaknessesininternalcontrolnotrelatedtofinancialreporting | None |
Indicatebytickmarkwhetheranymodifiedopinionisexpressedintheindependentauditor’sreportontheCompany’sinternalcontrol.□Yes√NoIndicatebytickmarkwhethertheindependentauditor’sreportontheCompany’sinternalcontrolisconsistentwiththeinternalcontrolself-evaluationreportissuedbytheCompany’sBoard.√Yes□No
PartXCorporateBonds
DoestheCompanyhaveanycorporatebondspubliclyofferedonthestockexchange,whichwereoutstandingbeforethedateofthisReport’sapprovalorwereduebutcouldnotberedeemedinfull?RefertothedisclosureI.BasicInformationoftheCorporateBonds
Name
| Name | Abbr. | Code | Releasedate | Duedate | Bondsbalance(RMB’0,000) | Interestrate | Wayofredemption |
| Privatelyplacedcorporatebondsin2019ofKonkaGroupCo.,Ltd(PhaseI)(VarietyI) | 19Konka01 | 114418 | 14January2019 | 14January2022 | 100,000 | 5.00% | Interestsshallbepaideveryyearandtheprincipalsshallberepaidwhenexpired. |
| Privatelyplacedcorporatebondsin2019ofKonkaGroupCo.,Ltd(PhaseI)(VarietyII) | 19Konka02 | 114423 | 14January2019 | 14January2022 | 150,000 | 5.00% | Interestsshallbepaideveryyearandtheprincipalsshallberepaidwhenexpired. |
| ListedortransferredtradingplaceoftheCompanybonds | ShenzhenStockExchange | ||||||
| Appropriatearrangementoftheinvestors | “19Konka01”and“19Konka02”wasplacedprivatelytoqualifiedinstitutionalinvestors(lessthan200)meetingtherequirementsofManagementmethodforInvestorsEligibilityinBondsMarketofShenzhenStockExchange | ||||||
| InterestpaymentduringtheReportingPeriod | DuringtheReportingPeriod,“19Konka01”and“19Konka02”werenotissuedyet,withouttheinterestpaymentofcorporatebonds. | ||||||
| ExecutionoftherelevantregulationsduringtheReportingPeriodsuchastheaffiliatedoptionclauseoftheissuersorinvestors,specialclausessuchastheexchangeableregulationsoftheCompany | 1.Optionforissuertoadjustcouponrate;2.Put-backsoptionforinvestors;therewasnoimplementationofrelevantclauses. | ||||||
bonds(ifapplicable)
II.ListoftheBondTrusteeandtheRatingOrganization
bonds(ifapplicable)Bondtrustee:
| Bondtrustee: | |||||||
| Name | IndustrialSecuritiesCo.,Ltd | Officeaddress | Room801,No.35JinshifangStreet,XichengDistrict,Beijing | Contactperson | PuHang,andZhangHuifang | Contactnumber | 010-50911203 |
| RatingorganizationexecutedthetrackingratingofthecorporatebondsoftheReportingPeriod: | |||||||
| Name | UnitedRatingsCo.,Ltd. | Officeaddress | No.2JianwaiStreet,ChaoyangDistrict,Beijing | ||||
| Alternationreasons,executionprocessandinfluencesontheinvestors’interestsetc.iftherewasalternationofthebondtrusteesandthecreditratingagenciesengagedbytheCompanyduringtheReportingPeriod(ifapplicable) | No | ||||||
III.ListoftheUsageoftheRaisedFundsoftheCorporateBonds
| ListoftheusageoftheraisedfundsandtheexecutionprocessoftheCompanybonds | TheCompanyhasusedtheraisedfundsanddisclosedrelatedinformationinatimely,authentic,accurateandcompletemannerstrictlyinaccordancewiththetermsintheprospectusforthePeriod,relatedprovisionsandrequirementsintheMeasuresforIssuanceandTradingofCorporateBonds,CSRCReleasesNo.2GuidelinefortheSupervisionofListedCompanies-AdministrationofFundsRaisedbyListedCompaniesandApplicableSupervisionRequirements,theStockListingRulesoftheShenzhenStockExchangeandtheRulesoftheShenzhenStockExchangeforStockListingonChiNext.Ithasnotengagedinanyviolationsinrespectoftheuseandmanagementoftheraisedfunds. |
| Endingbalance(RMB’0,000) | 0 |
| Operatingsituationoftheraisedfundsspecialaccount | Theoperationwasingoodconditionwithoutanyviolationsforrelevantregulationsorcapitalsupervisionagreement |
| Whethertheusageoftheraisedfundsmetwiththeusage,usingplanandotheragreementscommittedontheprospectus | Yes |
IV.RatingSituationoftheCorporateBondsInformationInAugust2018,theentityofKonkaGroupCo.,Ltd.wasfirstratedasGradeAAbyUnitedCreditRatingsCo.,Ltdforitslong-termcreditandas“Stable”foritsratingprospect;thebonds“19Konka01”and“19Konka02”byKonkaGroupCo.,Ltd.issuedbyKonkaGroupCo.,Ltd.throughprivateofferingwereratedasGradeAAAfortheircreditandas“Stable”fortheirratingprospect.
V.Credit-addingMechanism,RepaymentPlanandOtherRepaymentGuaranteeMeasuresoftheCorporateBondsOCTGroupprovidedtheunconditionalandirrevocablejointliabilityguaranteeinfullamountforthebondsintheReportingPeriod.VI.ConveneSituationoftheBondsHoldersMeetingduringtheReportingPeriodNosuchcasesintheReportingPeriod.VII.ListoftheDutyExecutionoftheBondsTrusteeduringtheReportingPeriodDuringtheReportingPeriod,IndustrialSecuritiesCo.,Ltd.,theCompany’sbondtrusteemanager,proactivelyperformeditstrusteeship,continuedtobeconcernedwiththeCompany’sroutineproductionandoperationandfinancialconditions,andendeavoredtomaintainthelegitimaterightsandinterestsofthebondholderstrictlyinaccordancewithrelatedlaws,regulations,theManagementMeasuresfortheIssueandTradingofCorporateBonds,theProspectusandtheAgreementfortheBondTrusteeshipManagement.VIII.TheMajorAccountingDataandtheFinancialIndicatorsoftheRecent2YearsoftheCompanyupthePeriod-end
Unit:RMB’0,000
Item
| Item | 2018 | 2017 | Changerateofthesameperiod |
| EBITDA | 125,522.52 | 713,613.81 | -82.41% |
| Currentratio | 96.33% | 125.68% | -29.35% |
| Asset-liabilityratio | 71.35% | 65.20% | 6.15% |
| Quickratio | 72.13% | 94.47% | -22.34% |
| TotaldebtratioofEBITDA | 8.18% | 92.88% | -84.70% |
| Timesinterestearned | 1.86 | 23.98 | -92.24% |
| Timesinterestearnedofcash | -3.06 | -13.51 | 77.35% |
| TimesinterestearnedofEBITDA | 2.39 | 24.62 | -90.29% |
| Loanrepaymentrate | 100.00% | 100.00% | 0.00% |
| Interestcoverage | 100.00% | 100.00% | 0.00% |
MainreasonoftheaboveaccountingdataandthefinancialindicatorswiththeYoYchangeexceeded30%
√Applicable□Notapplicable
ThemainreasonforthedecreaseofEBITDA,totaldebtratioofEBITDA,timesinterestearned,timesinterest
earnedofEBITDAwasthattherewasnosuchincomein2018asthelarge-amountexceptionalgainfromthetransferofa70%interestinShenzhenKangqiaoJiachengPropertyInvestmentCo.,Ltd.in2017.TheincreaseoftimesinterestearnedofcashwasbecauseNetcashgeneratedfrom/usedinoperatingactivitiesandincometaxincreasedRMB1billionrespectivelyascomparedwithlastyear.
IX.ListoftheInterestPaymentofOtherBondsandDebtFinancingInstrumentsduringtheReportingPeriodNosuchcasesintheReportingPeriod.X.ListoftheAcquiredBankCreditLines,UsageandtheRepaymentoftheBankLoansAsoftheendoftheReportingPeriod,theCompanyacquiredbankcreditlinesofRMB17.999billion,andusedRMB9.759billion.Allbankloanscanberepaidonschedulewithoutanyoverduesituations.XI.ListoftheExecutionoftheAgreementsortheCommitmentsRelatedtotheCompanyBondsRaisingSpecificationduringtheReportingPeriodDuringtheReportingPeriod,theCompanydidnotissuedcorporatebonds.XII.SignificantEventsOccurringduringtheReportingPeriodAsat31January2019,thebalanceofborrowingswasRMB17,148million.ThecumulativeamountofnewborrowingsforJanuary2019wasRMB2,729million,accountingfor28.87%ofthenetassetsasattheendof2018.TheCompanyhasdisclosedtheinformationonthecumulativeamountofnewborrowingspursuanttorelatedregulationssuchastheManagementMeasuresfortheIssueandTradingofCorporateBonds.Fordetails,seeAnnouncementonCumulativeAmountofNewBorrowings(2019-11)disclosedbytheCompany.XIII.WhetherthereWasGuarantoroftheCorporateBonds√Yes□NoWhethertheguarantorofthecorporatebondswaslegalpersonorotherorganizations√Yes□NoWhetherseparatelydisclosethefinancialstatements(includingBalanceSheet,IncomeStatement,CashFlowStatement,andChangesinowners’(shareholders’)Equity,andnotesforFinancialStatements)ofguarantorintheReportingPeriodwithin4monthsfromtheendingdateofeveryaccountingyear√Yes□No
PartXIFinancialStatements
IIndependentAuditor’sReport
Typeoftheindependentauditor’sopinion
| Typeoftheindependentauditor’sopinion | Unmodifiedunqualifiedopinion |
| Dateofsigningthisreport | 29March2018 |
| Nameoftheindependentauditor | RuihuaCertifiedPublicAccountants(LLP) |
| Referencenumberofauditreport | RHSZ[2019]No.44040004 |
| Nameofthecertifiedpublicaccountants | LiuJianhuaandShenLingzhi |
IndependentAuditor’sReport
RuihuaAuditReport[2019]No.No.44040004AllshareholdersofKonkaGroupCo.,Ltd.I.OpinionWehaveauditedtheaccompanyingfinancialstatementsofKonkaGroupCo.,Ltd.(the“Company”),whichcomprisetheCompany’sandconsolidatedbalancesheetsasat31December2018,theCompany’sandconsolidatedincomestatements,theCompany’sandconsolidatedcashflowstatements,theCompany’sandconsolidatedstatementsofchangesinshareholders’equityfortheyearthenended,aswellasthenotestothefinancialstatements.Inouropinion,thefinancialstatementsattachedwerepreparedinlinewiththeregulationsofAccountingStandardsforBusinessEnterprisesinallsignificantaspectswhichgaveatrueandfairviewoftheconsolidatedandparentfinancialpositionoftheCompanyasat31December2018andtheconsolidatedandparentbusinessperformanceandcashflowoftheCompanyfor2018.II.BasisforOpinionWeconductedourauditinaccordancewithStandardsonAuditingforCertifiedPublicAccountants.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.Inaccordancewithprofessionalethicsforcertifiedpublicaccountants,weareindependentwithFoshanHuaxinPackingCo.,Ltd.andwehavefulfilledourotherethicalresponsibilities.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.III.KeyAuditMattersKeyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthefinancialstatementsoftheCurrentPeriod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.Weconfirmthatthefollowingitemsarethekeyaudititemswhichshallbeprovidedintheauditreport.
(I)RecognitionofSupplyChainTradeIncomeandEnvironmentalProtectionIncome1.ItemDescriptionPleaserefertoNote23ofAnnotationIVImportantAccountingPoliciesandAccountingEstimationoftheFinancialStatementandNote38ofAnnotationVINotesforItemofConsolidatedFinancialStatementforrelatedinformationdisclosed.Kangjiagroup'soperatingincomein2018wasRMB4,612,679.73million,anincreaseofRMB1,489,903.41millioncomparedwiththatin2017,anincreaseof47.71%.Itisthegrowthofincomeofsupplychaintradebusinessandenvironmentalprotectionbusinessmainly.EnvironmentalprotectionbusinessincludesPPP(cooperationbetweengovernmentandsocialcapital),BT(transferofconstruction),publicinfrastructureconstructionsuchasenvironmentalprotectionandsewagetreatment,andwastematerialrecyclingbusiness.TheCompanyrecognizesrevenuefromsupplychaintradeandwastematerialrecyclingbusinessbasedonthefollowingprinciples:
①Commoditiesforthedomesticmarket:revenueisrecognizedwhenthecommoditiesaredeliveredorthecommodityrightistransferred;?Exportedcommodities:
revenueisrecognizedaftercommoditiesaretransferredtotheshipperentrustedbythepurchaserafterfinishingcustomsdeclaration;③Commoditiesdirectlytradedabroad:revenueisrecognizedwhencustomerspickupcommoditiesorcommoditiesaredeliveredtotheplacesdesignatedbycustomers.ForpublicinfrastructureconstructionbusinesssuchasenvironmentalprotectionandsewagetreatmentparticipatedbymodesofPPPandBT,revenuefromconstructionservicesprovidedduringtheconstructionperiodarerecognizedaccordingtoASBENo.15-ConstructionContractsbasedonpercentageofcompletionmethod.Duetofewerproductionandprocessinglinksandsimpletradeformofsupplychaintradeandwastematerialrecyclingbusiness,thepercentageofcompletionmethodusedfortherecognitionofrevenuefromPPPprojectconstructionservicesinvolvessignificantaccountingestimatesandjudgmentsoftheManagement,andthereisariskthattheManagementmanipulatesrevenueinordertoachievespecificobjectivesorassessmentindicators.Onthisaccount,werecognizedrevenuefromsupplychaintradeandenvironmentalprotectionbusinessasakeyauditmatter.2.CountermeasuresofAudit(1)Weadoptedthefollowingcountermeasuresofauditforsupplychaintradeandwastematerialrecyclingbusiness:
①Wehaveunderstoodandevaluatedtheeffectivenessofkeyinternalcontroldesignandoperationrelatedtotherecognitionofrevenuefromsupplychaintradeandenvironmentalprotectionbusiness;②Wehavecheckedupthesalescontractandsalessupportdocuments,checkedwhethertheriskandrewardclausesinsalescontractsareconsistentwiththerevenuerecognitionprinciple,andevaluatedwhethertheCompany’sprincipleforrevenuerecognitionbasedontotalbusinessvolumemethodofsupplychainmeetstherequirementsofenterpriseaccountingstandards;③Wehaveimplementedananalyticalprocedureforincomeandcost,andanalysedthefluctuationandcausesofsalespriceinthecurrentyeartoevaluatetherationalityofthechangesingrossprofitmarginofsales;④Wehaveselectedsamplestoexecuteconfirmationproceduresforbalanceofaccountsreceivableaccordingtothecharacteristicsandnatureofcustomertransactions,andconfirmedsalesamountsofimportantcustomers;
⑤Wehaveselectedsamplesofcustomersandsupplierstocheckbusinessinformationandbackground,andevaluatedthebusinessrationalityoftransactionswithcustomers;⑥WehaveentrustedlawyersinHongKongtocheckwhethertherewasanyrelationshipbetweenoverseascustomersandsuppliers,andevaluatedlawyers'professionalcompetence,independenceandtheavailabilityoflawyers'work;⑦Wehavevisitedcustomersandsupplierswithlargebusinessvolumetofurtherunderstandthebackgroundoftransactionsandbasicinformationofcounterparties,andtocheckwhethertherewasanyintentionallyincreasedtradelinksorfictitioustradingparties;⑧Wehaveconductedspotchecksondocumentsinvolvedintheprocessoftransactions,suchasshippingdocuments,transferdocumentsofcommodityrights,banktransfervouchersandinvoices,etc.(2)WeadoptedthefollowingcountermeasuresofauditforrecognitionofrevenuefromPPPandBTprojectsattheconstructionstage:
①WehaveunderstoodandevaluatedtheeffectivenessofkeyinternalcontroldesignandoperationrelatedtotherecognitionofrevenuefromPPPandBTprojectsattheconstructionstage;②Wehavecheckedthekeycontracttermsofthemainconstructioncontract;③Wehavereviewedthepreparation,reviewandchangingprocessesofestimatedtotalcostandtherelatedcontrolprocedures,andevaluatedtheeffectivenessoftheinternalcontrol;④Wehavecheckedthedetailsofestimatedtotalcostofprojects,reviewedthecalculationofpercentageofprojectcompletion,andevaluatedtherationalityofmajorjudgmentsandestimatesmadebytheManagement;⑤Obtainthemid-termmeasurementpaymentcertificateoftheproject,andcheckwhethertheprogressoftheprojectandtheamountofthecompletedprojecthavebeenconfirmedbythesignatureandsealofthecontractorandthesupervisor;⑥Formajorprojects,wehaveconductedon-siteinspectionofimageprogress,theuseofworkoftheInstitute'scostengineersinthemajorprojects,andassessedwhethertheactualcompletionscheduleofprojectsisconsistentwiththecompletionscheduleconfirmedbytheCompany.(II)Non-businessincomefrombusinesscombinationsnotunderthesamecontrol,initialrecognitionandimpairmentofbusinessreputation1.ItemDescriptionPleaserefertoNote20ofAnnotationIVImportantAccountingPoliciesandAccountingEstimationoftheFinancialStatementandNote16and49ofAnnotationVINotesforItemofConsolidatedFinancialStatementforrelatedinformationdisclosed.AsofDecember31,2018,theamountofgoodwillintheconsolidatedfinancialstatementsofkangjiagroupcompanyis85,5,691,400yuan.Intheyearof2018,non-operatingincomeis22,0045,200yuanduetothefactthatthecostofenterprisecombinationunderthenon-samecontrolislessthanthefairvalueshareofidentifiablenetassetsofthepurchaser.Theformationofgoodwillcomesfromtheacquisitionofyikangtechnologyco.,LTD.,jiangxikangjianewmaterialtechnologyco.,ltd.andguangdongxingdahongyeelectronicsco.,ltd.bykangjiagroupin2018.Theformationofnon-operatingincomeisgeneratedbytheacquisitionofhenanxinfeirefrigerationapplianceco.,LTD.,henanxinfeielectricapplianceco.,LTD.,andhenanxinfeihomeapplianceco.,LTD.,whicharenotunderthesamecontrol,throughjudicialauction.TheCompanyManagementallocatedthecombinationcostsandrecognizedtheacquiredidentifiableassets,liabilitiesandcontingentliabilitiesofacquireeonthecombinationday.The
acquirershallrecognizethepositivebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainedfromtheacquireeasbusinessreputation.Wherethecombinationcostsarelessthanthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquiree:
①Theacquirershallre-examinethemeasurementofthefairvaluesoftheidentifiableassets,liabilitiesandcontingentliabilitiesitobtainsfromtheacquireeaswellasthecombinationcosts;②If,afterthere-examination,thecombinationcostsarestilllessthanthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquiree,theacquirershallrecordthebalanceintotheprofitsandlossesofthecurrentperiod.TheCompanyManagementtestedtheimpairmentofbusinessreputationbycombiningitwithrelatedassetgroupsorportfoliosonthebalancesheetdate.Accordingtothetestresult,theCompanydidnotsufferanyimpairmentofbusinessreputation.Becauseofthefairvalueofidentifiableassets,liabilitiesandcontingentliabilitiesoftheaquireeonthecombinationdate,evaluationworkofexpertsisneedforbusinessreputationimpairmenttestonthebalancesheetdate.Theparametersusedintheevaluationinvolvediscountrate,futuresalesgrowthrate,sustainablegrowthrateinpredictiveperiodandgrossinterestrate,etc.Theevaluationmethodsusedincludeasset-basedmethodandincomemethod.Theevaluationprocessoffairvalueonthecombinationdateandimpairmenttestofbusinessreputationonthebalancesheetdayiscomplex,andtheassumptionsbasedonmaychangeduetotheinfluenceofexpectedfuturemarketandeconomicenvironment.AlloftheabovementioneddependontheManagement'sjudgment.Onthisaccount,weidentifynon-businessincomefrombusinesscombinationsnotunderthesamecontrol,initialrecognitionandimpairmenttestofbusinessreputationaskeyauditingitems.2.CountermeasuresofAudit(1)Wehaveunderstoodandevaluatedtheeffectivenessofthedesignandoperationofkeyinternalcontrolsrelatedtobusinesscombinationsnotunderthesamecontrolandimpairmentofbusinessreputation;(2)Wehavereviewedthemeasurementofthefairvaluesofidentifiableassets,liabilitiesandcontingentliabilitiesobtainedfromtheacquireeandthecombinationcost;(3)WehaveunderstoodtheManagement'srecognitionoftheassetgrouporportfoliotowhichbusinessreputationbelongs,thekeyassumptionsandmethodsusedintheimpairmenttestofbusinessreputation,andevaluatedtherationalityofidentificationofassetgrouporportfolio,andrelatedassumptionsandmethods;(4)Wehaveevaluatedthecompetence,professionalqualityandobjectivityofexternalvaluationexpertsappointedbytheManagement;(5)WehadtheassetgroupvaluationmethodusedandassessmentreportsmadebyexternalvaluationexpertsreviewedbyinternalvaluationexpertsoftheFirm;(6)WehavereviewedandevaluatedthekeyparametersusedbytheManagementforestimations,includingcomparativeanalysisonincomegrowthrateinpredictiveperiodandhistoricalincomegrowthrateandincomegrowthrateinthesameindustry;thecomparisonbetweenestimatedgrossinterestrateandhistoricalgrossinterestrate,takingintoaccountofthemarkettrend;andanalysisonthediscountrateadoptedbytheManagement;(7)WehaveobtainedandreviewedthecalculationtablepreparedbytheManagementfortherecoverableamountoftheassetgrouptowhichbusinessreputationbelongs,andcomparedthedifferencebetweenthebookvalueoftheassetgrouptowhichbusinessreputationbelongsandtherecoverableamounttoconfirmwhetherthereisanyimpairmentofbusinessreputation.
(8)Wehavecheckedandevaluated,basedontheresultofimpairmenttestofbusinessreputation,theaccuracyandappropriatenessofpresentationanddisclosureofbusinessreputation.(III)RecognitionofInvestmentIncome1.ItemDescriptionPleaserefertoNote13ofAnnotationIVImportantAccountingPoliciesandAccountingEstimationoftheFinancialStatementandNote11and46ofAnnotationVINotesforItemofConsolidatedFinancialStatementforrelatedinformationdisclosed.TheinvestmentincomeoftheCompanyin2018wasRMB927.4144million,mainlygeneratedfromtheinvestmentincomearisingfromdisposaloflong-termequityinvestment,returnsonpurchaseoffinancialproducts,andgainsarisingfromre-measurementofresidualequityatfairvalueafterlosingthecontrollingrights.Sincetheamountofinvestmentincomehasgreatlyimpactsonprofits,therecognitionofinvestmentincomeinvolvescomplicatedaccountingtreatmentandtherecognitionofthedateoflosingcontrollingrightsshouldbebasedontheprofessionaljudgement,weconfirmtherecognitionofinvestmentincomeasthekeyaudititem.2.CountermeasuresofAudit(1)Wehaveunderstood,estimatedandtesteddesignandimplementationofkeyinternalcontrolofthemanagementlevelrelatedtotheinvestmenttoconfirmtheeffectivenessoftheinternalcontrol;(2)Wehavecheckedthestocktransfercontracts,evaluationreports,changesinindustrialandcommercialregistration,changesintheboardofdirectorsandaccountsofstocktransferreceivedtoconfirmhavingmettherecognitionconditionsofinvestmentincome;(3)Wehavereviewedtheevaluationreportsrelatedtostocktransfertojudgethefairnessofstocktransactionconsiderationandrationalityoftherecognitionofresidualequitybyfairvalueafterlosingcontrollingrights;(4)WehaverecheckedtheaccountingprocessoftheCompany’sinvestmentincomeandrecalculatedtheinvestmentincomearisingfromtheresidualequityatfairvalueafterlosingcontrollingrightstoprovetherightnessoftheaccountingofinvestmentincome;(5)Wehavecheckedthecontractsandbankreceiptsrelatedtothepurchaseoffinancialproducts;spotcheckedtheaccountingdocumentsandcheckedtherecognitionofinvestmentincometoprovetherightnessoftheinvestmentincomeofentrustfinancialmanagement.IV.OtherInformationThemanagementoftheCompanyisresponsiblefortheotherinformation.Theotherinformationcomprisesalloftheinformationincludedintheannualreportfor2018otherthanthefinancialstatementsandourauditor’sreportthereon.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.V.ResponsibilityofManagementandThoseChargedwithGovernancefortheFinancialStatementsThemanagementoftheCompanyisresponsibleforthepreparationandfairpresentationofthese
financialstatementsinaccordancewithAccountingStandardsforBusinessEnterprisestomakethemafairpresentationanddesigning,implementingandmaintaininginternalcontrolrelevanttothepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,themanagementoftheCompanyisresponsibleforassessingtheCompany’sabilitytocontinueasagoingconcern,disclosing,ifapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessthemanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhasnorealisticalternativebuttodoso.ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany’sfinancialreportingprocess.VI.CPA’sResponsibilityfortheAuditoftheFinancialStatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Wereportouropinionsolelytoyou,asabody,andfornootherpurpose.Wedonotassumeresponsibilitytowardsoracceptliabilitytoanyotherpersonforthecontentsofthisreport.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithauditingstandardswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.Aspartofanauditinaccordancewithauditingstandards,weexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.Wealso:
1.Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.2.Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.3.Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebythemanagement.4.Concludeontheappropriatenessofthemanagement’useofthegoingconcernbasisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheCompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatements,orifsuchdisclosuresareinadequate,weshallmodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.5.Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,includingthedisclosures,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplanned
scopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andrelatedsafeguards(ifapplicable).Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsoftheCurrentPeriodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.
RuihuaCertifiedPublicAccountants(LLP)
| RuihuaCertifiedPublicAccountants(LLP) | CPA(EngagementPartner):LiuJianhua |
| Beijing·China | CPA:ShenLingzhi |
| 28March2019 |
IIFinancialStatementsCurrencyunitforthefinancialstatementsandthenotesthereto:RMB1.ConsolidatedBalanceSheetPreparedbyKonkaGroupCo.,Ltd.
Unit:RMB
| Item | 31December2018 | 31December2017 |
| Currentassets: | ||
| Monetarycapital | 4,348,144,129.53 | 3,212,044,851.08 |
| Settlementreserve | ||
| Interbankloansgranted | ||
| Financialassetsatfairvaluethroughprofitorloss | 5,464,984.92 | 296,799.53 |
| Derivativefinancialassets |
Notesandaccountsreceivable
| Notesandaccountsreceivable | 7,787,765,540.57 | 8,621,764,935.49 |
| Including:Notesreceivable | 3,329,711,954.15 | 5,178,668,988.23 |
| Accountsreceivable | 4,458,053,586.42 | 3,443,095,947.26 |
| Prepayments | 1,036,979,167.56 | 467,123,091.74 |
| Premiumsreceivable | ||
| Reinsurancereceivables | ||
| Receivablereinsurancecontractreserve | ||
| Otherreceivables | 410,804,180.50 | 184,218,356.16 |
| Including:Interestreceivable | 4,059,682.40 | 1,813,256.77 |
| Dividendsreceivable | 547,848.62 | |
| Financialassetspurchasedunderresaleagreements | ||
| Inventories | 5,487,605,227.05 | 4,690,363,565.53 |
| Assetsclassifiedasheldforsale | ||
| Currentportionofnon-currentassets | 22,318,208.13 | |
| Othercurrentassets | 2,744,216,141.98 | 1,715,326,868.81 |
| Totalcurrentassets | 21,843,297,580.24 | 18,891,138,468.34 |
| Non-currentassets: | ||
| Loansandadvancestocustomers | ||
| Available-for-salefinancialassets | 633,664,881.33 | 712,170,399.09 |
| Held-to-maturityinvestments | ||
| Long-termreceivables | 390,793,038.05 | |
| Long-termequityinvestments | 2,637,780,825.53 | 1,319,987,343.74 |
| Investmentproperty | 210,824,355.72 | 216,455,629.99 |
| Fixedassets | 2,410,226,495.81 | 1,587,170,348.35 |
| Constructioninprogress | 2,176,871,530.80 | 135,863,821.01 |
| Productivelivingassets | ||
| Oilandgasassets | ||
| Intangibleassets | 737,776,686.34 | 205,057,773.69 |
| R&Dexpense | ||
| Goodwill | 855,691,423.75 | 3,597,657.15 |
| Long-termprepaidexpense | 111,223,426.77 | 150,060,937.30 |
| Deferredincometaxassets | 639,433,954.30 | 307,942,263.12 |
| Othernon-currentassets | 337,477,690.39 | 29,290,828.00 |
| Totalnon-currentassets | 11,141,764,308.79 | 4,667,597,001.44 |
Totalassets
| Totalassets | 32,985,061,889.03 | 23,558,735,469.78 |
| Currentliabilities: | ||
| Short-termborrowings | 13,884,132,931.63 | 6,927,472,037.35 |
| Borrowingsfromcentralbank | ||
| Customerdepositsandinterbankdeposits | ||
| Interbankloansobtained | ||
| Financialliabilitiesatfairvaluethroughprofitorloss | 2,459,603.25 | 47,482,470.50 |
| Derivativefinancialliabilities | ||
| Notesandaccountspayable | 5,225,053,739.80 | 4,153,391,578.68 |
| Advancesfromcustomers | 723,227,529.20 | 640,510,784.17 |
| Financialassetssoldunderrepurchaseagreements | ||
| Handlingchargesandcommissionspayable | ||
| Payrollpayable | 376,506,567.71 | 291,370,297.67 |
| Taxespayable | 288,004,192.44 | 1,326,569,094.53 |
| Otherpayables | 2,024,657,277.74 | 1,644,083,269.81 |
| Including:Interestpayable | 27,230,631.41 | 35,723,963.94 |
| Dividendspayable | ||
| Reinsurancepayables | ||
| Insurancecontractreserve | ||
| Payablesforactingtradingofsecurities | ||
| Payablesforunderwritingofsecurities | ||
| Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale | ||
| Currentportionofnon-currentliabilities | 151,792,404.13 | 374,358.99 |
| Othercurrentliabilities | ||
| Totalcurrentliabilities | 22,675,834,245.90 | 15,031,253,891.70 |
| Non-currentliabilities: | ||
| Long-termborrowings | 445,000,000.00 | 167,000,000.00 |
| Bondspayable | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Long-termpayables | 128,374,597.41 | 61,538.46 |
| Long-termpayrollpayable | 8,792,614.98 | 13,361,821.86 |
| Provisions | 21,772,898.37 | 6,181,865.10 |
| Deferredincome | 112,899,128.24 | 130,049,911.87 |
Deferredincometaxliabilities
| Deferredincometaxliabilities | 141,020,093.34 | 12,636,633.40 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 857,859,332.34 | 329,291,770.69 |
| Totalliabilities | 23,533,693,578.24 | 15,360,545,662.39 |
| Owners’equity: | ||
| Sharecapital | 2,407,945,408.00 | 2,407,945,408.00 |
| Otherequityinstruments | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 208,356,624.21 | 104,732,242.30 |
| Less:Treasurystock | ||
| Othercomprehensiveincome | -10,538,219.08 | 3,697,458.95 |
| Specificreserve | ||
| Surplusreserves | 1,227,564,785.19 | 1,217,644,874.79 |
| Generalreserve | ||
| Retainedearnings | 4,271,408,192.21 | 4,260,125,492.57 |
| TotalequityattributabletoownersoftheCompanyastheparent | 8,104,736,790.53 | 7,994,145,476.61 |
| Non-controllinginterests | 1,346,631,520.26 | 204,044,330.78 |
| Totalowners’equity | 9,451,368,310.79 | 8,198,189,807.39 |
| Totalliabilitiesandowners’equity | 32,985,061,889.03 | 23,558,735,469.78 |
Legalrepresentative:LiuFengxiCFO:LiChunleiHeadofthefinancialdepartment:FengJunxiu2.BalanceSheetoftheCompanyastheParent
Unit:RMB
| Item | 31December2018 | 31December2017 |
| Currentassets: | ||
| Monetarycapital | 2,124,335,536.69 | 1,760,838,390.83 |
| Financialassetsatfairvaluethroughprofitorloss | 5,464,984.92 | 296,799.53 |
| Derivativefinancialassets | ||
| Notesandaccountsreceivable | 9,608,713,113.32 | 7,596,218,302.24 |
| Including:Notesreceivable | 2,181,466,683.90 | 2,864,064,309.99 |
| Accountsreceivable | 7,427,246,429.42 | 4,732,153,992.25 |
| Prepayments | 1,019,335,571.49 | 1,066,260,182.37 |
| Otherreceivables | 6,667,463,126.57 | 4,341,467,382.86 |
Including:Interestreceivable
| Including:Interestreceivable | 5,769,663.24 | 23,894,771.88 |
| Dividendsreceivable | 2,690,276.72 | |
| Inventories | 254,225,716.41 | 2,090,697,937.23 |
| Assetsclassifiedasheldforsale | ||
| Currentportionofnon-currentassets | 100,000,000.00 | |
| Othercurrentassets | 77,249,216.99 | 1,547,454,872.74 |
| Totalcurrentassets | 19,756,787,266.39 | 18,503,233,867.80 |
| Non-currentassets: | ||
| Available-for-salefinancialassets | 326,164,881.33 | 562,612,236.33 |
| Held-to-maturityinvestments | ||
| Long-termreceivables | ||
| Long-termequityinvestments | 6,182,962,034.71 | 2,649,074,424.45 |
| Investmentproperty | 210,824,355.72 | 216,455,629.99 |
| Fixedassets | 462,721,018.30 | 482,020,892.58 |
| Constructioninprogress | 157,356,696.30 | 79,927,345.88 |
| Productivelivingassets | ||
| Oilandgasassets | ||
| Intangibleassets | 83,593,959.11 | 91,718,400.70 |
| R&Dexpense | ||
| Goodwill | ||
| Long-termprepaidexpense | 80,388,949.97 | 78,305,555.97 |
| Deferredincometaxassets | 516,879,201.66 | 279,324,511.96 |
| Othernon-currentassets | 20,000,000.00 | 20,000,000.00 |
| Totalnon-currentassets | 8,040,891,097.10 | 4,459,438,997.86 |
| Totalassets | 27,797,678,363.49 | 22,962,672,865.66 |
| Currentliabilities: | ||
| Short-termborrowings | 8,179,564,987.70 | 3,269,730,888.60 |
| Financialliabilitiesatfairvaluethroughprofitorloss | 2,459,603.25 | 47,482,470.50 |
| Derivativefinancialliabilities | ||
| Notesandaccountspayable | 9,990,213,911.08 | 8,561,630,481.98 |
| Advancesfromcustomers | 306,650,717.69 | 601,036,147.76 |
| Payrollpayable | 146,199,496.44 | 163,066,135.71 |
| Taxespayable | 10,913,871.30 | 1,070,771,570.12 |
| Otherpayables | 2,011,494,378.65 | 1,918,409,927.12 |
Including:Interestpayable
| Including:Interestpayable | 24,158,666.48 | 50,336,913.53 |
| Dividendspayable | ||
| Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale | ||
| Currentportionofnon-currentliabilities | 40,000,000.00 | |
| Othercurrentliabilities | ||
| Totalcurrentliabilities | 20,687,496,966.11 | 15,632,127,621.79 |
| Non-currentliabilities: | ||
| Long-termborrowings | 245,000,000.00 | 167,000,000.00 |
| Bondspayable | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Long-termpayables | ||
| Long-termpayrollpayable | ||
| Provisions | 206,591.51 | 6,181,865.10 |
| Deferredincome | 75,705,476.93 | 94,590,560.82 |
| Deferredincometaxliabilities | 751,345.42 | |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 321,663,413.86 | 267,772,425.92 |
| Totalliabilities | 21,009,160,379.97 | 15,899,900,047.71 |
| Owners’equity: | ||
| Sharecapital | 2,407,945,408.00 | 2,407,945,408.00 |
| Otherequityinstruments | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 114,018,066.79 | 111,525,163.22 |
| Less:Treasurystock | ||
| Othercomprehensiveincome | -1,182,217.31 | -1,970,304.62 |
| Specificreserve | ||
| Surplusreserves | 1,227,564,785.19 | 1,217,644,874.79 |
| Retainedearnings | 3,040,171,940.85 | 3,327,627,676.56 |
| Totalowners’equity | 6,788,517,983.52 | 7,062,772,817.95 |
| Totalliabilitiesandowners’equity | 27,797,678,363.49 | 22,962,672,865.66 |
3.ConsolidatedIncomeStatement
Unit:RMB
Item
| Item | 2018 | 2017 |
| 1.Revenue | 46,126,797,341.33 | 31,227,763,249.71 |
| Including:Operatingrevenue | 46,126,797,341.33 | 31,227,763,249.71 |
| Interestincome | ||
| Premiumincome | ||
| Handlingchargeandcommissionincome | ||
| 2.Costsandexpenses | 47,263,866,198.50 | 31,418,151,525.89 |
| Including:Costofsales | 43,227,613,914.45 | 27,788,985,279.80 |
| Interestexpense | ||
| Handlingchargeandcommissionexpense | ||
| Surrenders | ||
| Netclaimspaid | ||
| Netamountprovidedasinsurancecontractreserve | ||
| Expenditureonpolicydividends | ||
| Reinsurancepremiumexpense | ||
| Taxesandsurcharges | 89,689,865.93 | 208,836,733.61 |
| Sellingexpense | 2,282,174,241.64 | 2,141,993,558.11 |
| Administrativeexpense | 641,892,996.18 | 448,036,697.96 |
| R&Dexpense | 396,460,145.24 | 329,676,982.50 |
| Financecosts | 399,165,814.39 | 340,918,550.61 |
| Including:Interestexpense | 566,070,556.21 | 352,438,125.53 |
| Interestincome | 43,630,012.41 | 62,735,102.89 |
| Assetimpairmentloss | 226,869,220.67 | 159,703,723.30 |
| Add:Otherincome | 294,265,632.23 | 204,979,443.55 |
| Investmentincome(“-”forloss) | 927,414,370.96 | 6,587,848,357.88 |
| Including:Shareofprofitorlossofjointventuresandassociates | 19,139,381.20 | 3,953,094.99 |
| Gainonchangesinfairvalue(“-”forloss) | 50,191,052.64 | -66,221,451.96 |
| Foreignexchangegain(“-”forloss) | ||
| Assetdisposalincome(“-”forloss) | -563,894.74 | 55,945,401.39 |
| 3.Operatingprofit(“-”forloss) | 134,238,303.92 | 6,592,163,474.68 |
Add:Non-operatingincome
| Add:Non-operatingincome | 328,696,140.09 | 82,832,663.76 |
| Less:Non-operatingexpense | 8,037,851.90 | 16,521,032.68 |
| 4.Profitbeforetax(“-”forloss) | 454,896,592.11 | 6,658,475,105.76 |
| Less:Incometaxexpense | -213,721,829.46 | 1,571,641,005.78 |
| 5.Netprofit(“-”fornetloss) | 668,618,421.57 | 5,086,834,099.98 |
| 5.1Netprofitfromcontinuingoperations(“-”fornetloss) | 668,618,421.57 | 5,086,834,099.98 |
| 5.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| NetprofitattributabletoownersoftheCompanyastheparent | 411,289,744.68 | 5,057,025,155.71 |
| Netprofitattributabletonon-controllinginterests | 257,328,676.89 | 29,808,944.27 |
| 6.Othercomprehensiveincome,netoftax | -12,585,647.54 | 10,457,550.34 |
| AttributabletoownersoftheCompanyastheparent | -14,235,678.03 | 10,629,563.60 |
| 6.1Itemsthatwillnotbereclassifiedtoprofitorloss | ||
| 6.1.1Changescausedbyremeasurementsondefinedbenefitpensionschemes | ||
| 6.1.2Shareofothercomprehensiveincomeofinvesteesthatwillnotbereclassifiedtoprofitorlossunderequitymethod | ||
| 6.2Itemsthatmaysubsequentlybereclassifiedtoprofitorloss | -14,235,678.03 | 10,629,563.60 |
| 6.2.1Shareofothercomprehensiveincomeofinvesteesthatwillbereclassifiedtoprofitorlossunderequitymethod | 740,697.08 | -3,138,048.04 |
| 6.2.2Gain/Lossonchangesinfairvalueofavailable-for-salefinancialassets | -31,342.07 | -6,379,226.68 |
| 6.2.3Gain/Lossarisingfromreclassificationofheld-to-maturityinvestmentstoavailable-for-salefinancialassets | ||
| 6.2.4Effectivegain/lossoncashflowhedges | ||
| 6.2.5Differencesarisingfromtranslationofforeigncurrency-denominatedfinancialstatements | -14,945,033.04 | 20,146,838.32 |
| 6.2.6Other | ||
| Attributabletonon-controllinginterests | 1,650,030.49 | -172,013.26 |
| 7.Totalcomprehensiveincome | 656,032,774.03 | 5,097,291,650.32 |
| AttributabletoownersoftheCompanyastheparent | 397,054,066.65 | 5,067,654,719.31 |
| Attributabletonon-controllinginterests | 258,978,707.38 | 29,636,931.01 |
| 8.Earningspershare | ||
| 8.1Basicearningspershare | 0.1708 | 2.1001 |
| 8.2Dilutedearningspershare | 0.1708 | 2.1001 |
Legalrepresentative:LiuFengxiCFO:LiChunleiHeadofthefinancialdepartment:FengJunxiu
4.IncomeStatementoftheCompanyastheParent
Unit:RMB
Item
| Item | 2018 | 2017 |
| 1.Operatingrevenue | 13,377,681,886.45 | 12,102,478,051.51 |
| Less:Costofsales | 12,572,129,164.32 | 10,254,093,606.04 |
| Taxesandsurcharges | 25,843,072.39 | 32,773,051.99 |
| Sellingexpense | 1,511,526,663.59 | 1,539,608,039.02 |
| Administrativeexpense | 349,794,611.61 | 240,683,547.54 |
| R&Dexpense | 148,115,964.90 | 329,676,982.50 |
| Financecosts | 263,729,410.33 | 275,532,025.79 |
| Including:Interestexpense | ||
| Interestincome | ||
| Assetimpairmentloss | 64,312,750.93 | 133,044,172.18 |
| Add:Otherincome | 73,925,099.14 | 69,388,626.62 |
| Investmentincome(“-”forloss) | 1,247,079,039.64 | 6,419,712,482.20 |
| Including:Shareofprofitorlossofjointventuresandassociates | 33,783,935.14 | -2,867,529.72 |
| Gainonchangesinfairvalue(“-”forloss) | 50,191,052.64 | -86,743,251.96 |
| Assetdisposalincome(“-”forloss) | -2,560.75 | 74,187.45 |
| 2.Operatingprofit(“-”forloss) | -186,577,120.95 | 5,699,498,670.76 |
| Add:Non-operatingincome | 51,273,970.95 | 38,052,635.22 |
| Less:Non-operatingexpense | 2,556,804.31 | 10,368,352.12 |
| 3.Profitbeforetax(“-”forloss) | -137,859,954.31 | 5,727,182,953.86 |
| Less:Incometaxexpense | -237,059,058.30 | 1,414,775,357.96 |
| 4.Netprofit(“-”fornetloss) | 99,199,103.99 | 4,312,407,595.90 |
| 4.1Netprofitfromcontinuingoperations(“-”fornetloss) | 99,199,103.99 | 4,312,407,595.90 |
| 4.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.Othercomprehensiveincome,netoftax | 788,087.31 | -8,684,742.24 |
| 5.1Itemsthatwillnotbereclassifiedtoprofitorloss | ||
| 5.1.1Changesincausedbyremeasurementsondefinedbenefitpensionschemes | ||
| 5.1.2Shareofothercomprehensiveincomeofinvesteesthatwillnotbereclassifiedtoprofitorlossunderequitymethod | ||
| 5.2Itemsthatmaysubsequentlybereclassifiedtoprofitorloss | 788,087.31 | -8,684,742.24 |
| 5.2.1Shareofothercomprehensiveincomeofinvesteesthatwillbereclassifiedtoprofitorlossunderequitymethod | 788,087.31 | -2,274,173.49 |
5.2.2Gain/Lossonchangesinfairvalueofavailable-for-salefinancialassets
| 5.2.2Gain/Lossonchangesinfairvalueofavailable-for-salefinancialassets | -6,410,568.75 | |
| 5.2.3Gain/Lossarisingfromreclassificationofheld-to-maturityinvestmentstoavailable-for-salefinancialassets | ||
| 5.2.4Effectivegain/lossoncashflowhedges | ||
| 5.2.5Differencesarisingfromtranslationofforeigncurrency-denominatedfinancialstatements | ||
| 5.2.6Other | ||
| 6.Totalcomprehensiveincome | 99,987,191.30 | 4,303,722,853.66 |
| 7.Earningspershare | ||
| 7.1Basicearningspershare | ||
| 7.2Dilutedearningspershare |
5.ConsolidatedCashFlowStatement
Unit:RMB
| Item | 2018 | 2017 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 46,363,698,743.08 | 31,446,609,731.30 |
| Netincreaseincustomerdepositsandinterbankdeposits | ||
| Netincreaseinborrowingsfromcentralbank | ||
| Netincreaseinloansfromotherfinancialinstitutions | ||
| Premiumsreceivedonoriginalinsurancecontracts | ||
| Netproceedsfromreinsurance | ||
| Netincreaseindepositsandinvestmentsofpolicyholders | ||
| Netincreaseinproceedsfromdisposaloffinancialassetsatfairvaluethroughprofitorloss | ||
| Interest,handlingchargesandcommissionsreceived | ||
| Netincreaseininterbankloansobtained | ||
| Netincreaseinproceedsfromrepurchasetransactions | ||
| Taxrebates | 475,610,439.41 | 306,536,483.85 |
| Cashgeneratedfromotheroperatingactivities | 3,714,670,493.13 | 9,189,740,317.98 |
| Subtotalofcashgeneratedfromoperatingactivities | 50,553,979,675.62 | 40,942,886,533.13 |
| Paymentsforcommoditiesandservices | 45,867,095,178.07 | 32,945,586,384.73 |
| Netincreaseinloansandadvancestocustomers | ||
| Netincreaseindepositsincentralbankandininterbankloansgranted | ||
| Paymentsforclaimsonoriginalinsurancecontracts |
Interest,handlingchargesandcommissionspaid
| Interest,handlingchargesandcommissionspaid | ||
| Policydividendspaid | ||
| Cashpaidtoandforemployees | 1,659,612,131.21 | 1,521,219,551.03 |
| Taxespaid | 1,648,013,358.42 | 538,733,487.55 |
| Cashusedinotheroperatingactivities | 4,609,082,880.58 | 10,251,604,732.29 |
| Subtotalofcashusedinoperatingactivities | 53,783,803,548.28 | 45,257,144,155.60 |
| Netcashgeneratedfrom/usedinoperatingactivities | -3,229,823,872.66 | -4,314,257,622.47 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 106,597,820.94 | 72,257,309.01 |
| Investmentincome | 146,065,795.48 | 126,829,624.00 |
| Netproceedsfromdisposaloffixedassets,intangibleassetsandotherlong-livedassets | 2,372,418.53 | 101,598,096.61 |
| Netproceedsfromdisposalofsubsidiariesorotherbusinessunits | 252,468,488.60 | 6,904,949,434.52 |
| Cashgeneratedfromotherinvestingactivities | 2,393,028,228.96 | 1,847,480,775.61 |
| Subtotalofcashgeneratedfrominvestingactivities | 2,900,532,752.51 | 9,053,115,239.75 |
| Paymentsforacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 486,058,229.18 | 252,512,252.89 |
| Paymentsforinvestments | 597,975,935.00 | 1,185,098,584.39 |
| Netincreaseinpledgedloansgranted | ||
| Netpaymentsforacquisitionofsubsidiariesandotherbusinessunits | 1,118,860,395.37 | |
| Cashusedinotherinvestingactivities | 2,949,519,200.00 | 2,885,988,913.10 |
| Subtotalofcashusedininvestingactivities | 5,152,413,759.55 | 4,323,599,750.38 |
| Netcashgeneratedfrom/usedininvestingactivities | -2,251,881,007.04 | 4,729,515,489.37 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | 332,513,927.94 | 50,430,511.80 |
| Including:Capitalcontributionsbynon-controllingintereststosubsidiaries | 203,580,594.60 | 50,430,511.80 |
| Increaseinborrowingsobtained | 14,681,965,477.02 | 9,997,566,758.22 |
| Netproceedsfromissuanceofbonds | ||
| Cashgeneratedfromotherfinancingactivities | 330,951,745.42 | 478,604,496.40 |
| Subtotalofcashgeneratedfromfinancingactivities | 15,345,431,150.38 | 10,526,601,766.42 |
| Repaymentofborrowings | 8,081,422,372.12 | 9,541,243,861.75 |
| Paymentsforinterestanddividends | 709,581,026.62 | 215,250,211.08 |
| Including:Dividendspaidbysubsidiariestonon-controllinginterests | 960,052.07 | 746,714.88 |
Cashusedinotherfinancingactivities
| Cashusedinotherfinancingactivities | 757,534,424.92 | 23,263,067.97 |
| Subtotalofcashusedinfinancingactivities | 9,548,537,823.66 | 9,779,757,140.80 |
| Netcashgeneratedfrom/usedinfinancingactivities | 5,796,893,326.72 | 746,844,625.62 |
| 4.Effectofforeignexchangeratechangesoncashandcashequivalents | 21,061,330.94 | -85,105,733.90 |
| 5.Netincreaseincashandcashequivalents | 336,249,777.96 | 1,076,996,758.62 |
| Add:Cashandcashequivalents,beginningoftheperiod | 3,097,899,703.76 | 2,020,902,945.14 |
| 6.Cashandcashequivalents,endoftheperiod | 3,434,149,481.72 | 3,097,899,703.76 |
6.CashFlowStatementoftheCompanyastheParent
Unit:RMB
| Item | 2018 | 2017 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 10,411,822,006.27 | 12,663,519,862.71 |
| Taxrebates | 162,545,714.88 | 101,117,712.70 |
| Cashgeneratedfromotheroperatingactivities | 3,664,490,303.85 | 11,750,343,362.91 |
| Subtotalofcashgeneratedfromoperatingactivities | 14,238,858,025.00 | 24,514,980,938.32 |
| Paymentsforcommoditiesandservices | 8,349,385,730.39 | 11,671,178,195.40 |
| Cashpaidtoandforemployees | 917,379,288.04 | 913,094,001.19 |
| Taxespaid | 1,163,848,413.52 | 153,133,718.08 |
| Cashusedinotheroperatingactivities | 8,371,093,126.27 | 13,492,237,043.23 |
| Subtotalofcashusedinoperatingactivities | 18,801,706,558.22 | 26,229,642,957.90 |
| Netcashgeneratedfrom/usedinoperatingactivities | -4,562,848,533.22 | -1,714,662,019.58 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 545,729,039.58 | 7,213,519,480.00 |
| Investmentincome | 229,742,943.89 | 157,605,497.94 |
| Netproceedsfromdisposaloffixedassets,intangibleassetsandotherlong-livedassets | 585,065.19 | 202,036.88 |
| Netproceedsfromdisposalofsubsidiariesorotherbusinessunits | ||
| Cashgeneratedfromotherinvestingactivities | 2,389,727,049.76 | 1,771,357,091.35 |
| Subtotalofcashgeneratedfrominvestingactivities | 3,165,784,098.42 | 9,142,684,106.17 |
| Paymentsforacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 91,684,045.40 | 69,689,987.87 |
| Paymentsforinvestments | 3,064,767,387.50 | 1,434,196,953.00 |
| Netpaymentsforacquisitionofsubsidiariesandotherbusinessunits |
Cashusedinotherinvestingactivities
| Cashusedinotherinvestingactivities | 1,178,410,798.39 | 2,997,732,417.74 |
| Subtotalofcashusedininvestingactivities | 4,334,862,231.29 | 4,501,619,358.61 |
| Netcashgeneratedfrom/usedininvestingactivities | -1,169,078,132.87 | 4,641,064,747.56 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | ||
| Increaseinborrowingsobtained | 14,232,230,155.56 | 6,424,596,805.22 |
| Netproceedsfromissuanceofbonds | ||
| Cashgeneratedfromotherfinancingactivities | 181,269,884.31 | 165,396,024.39 |
| Subtotalofcashgeneratedfromfinancingactivities | 14,413,500,039.87 | 6,589,992,829.61 |
| Repaymentofborrowings | 7,474,353,929.91 | 8,507,218,581.45 |
| Paymentsforinterestanddividends | 665,807,835.95 | 199,017,294.57 |
| Cashusedinotherfinancingactivities | 758,694,935.20 | 598,314.20 |
| Sub-totalofcashusedinfinancingactivities | 8,898,856,701.06 | 8,706,834,190.22 |
| Netcashgeneratedfrom/usedinfinancingactivities | 5,514,643,338.81 | -2,116,841,360.61 |
| 4.Effectofforeignexchangeratechangesoncashandcashequivalents | -28,192,061.54 | -39,905,176.10 |
| 5.Netincreaseincashandcashequivalents | -245,475,388.82 | 769,656,191.27 |
| Add:Cashandcashequivalents,beginningoftheperiod | 1,743,269,944.67 | 973,613,753.40 |
| 6.Cashandcashequivalents,endoftheperiod | 1,497,794,555.85 | 1,743,269,944.67 |
7.ConsolidatedStatementsofChangesinOwners’Equity2018
Unit:RMB
Item
| Item | 2018 | ||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||
| 1.Balancesasattheendoftheprioryear | 2,407,945,408.00 | 104,732,242.30 | 3,697,458.95 | 1,217,644,874.79 | 4,260,125,492.57 | 204,044,330.78 | 8,198,189,807.39 | ||||||
| Add:Adjustmentsforchangedaccountingpolicies | |||||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | |||||||||||||
| Adjustmentsforbusinesscombinationsundercommoncontrol | |||||||||||||
| Otheradjustments | |||||||||||||
| 2.Balancesasatthe | 2,407,945,408.0 | 104,732,242.30 | 3,697,458.95 | 1,217,644,874 | 4,260,125,492 | 204,044,330.7 | 8,198,189,807.3 | ||||||
beginningoftheyear
| beginningoftheyear | 0 | .79 | .57 | 8 | 9 | ||||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 103,624,381.91 | -14,235,678.03 | 9,919,910.40 | 11,282,699.64 | 1,142,587,189.48 | 1,253,178,503.40 | |||||
| 3.1Totalcomprehensiveincome | -14,235,678.03 | 411,289,744.68 | 258,978,707.38 | 656,032,774.03 | |||||||
| 3.2Capitalincreasedandreducedbyowners | 884,568,534.17 | 884,568,534.17 | |||||||||
| 3.2.1Ordinarysharesincreasedbyshareholders | 204,255,406.70 | 204,255,406.70 | |||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | |||||||||||
| 3.2.4Other | 680,313,127.47 | 680,313,127.47 | |||||||||
| 3.3Profitdistribution | 9,919,910.40 | -400,007,045.04 | -960,052.07 | -391,047,186.71 | |||||||
| 3.3.1Appropriationto | 9,919,910.40 | -9,919,910.40 |
surplusreserves
| surplusreserves | ||||
| 3.3.2Appropriationtogeneralreserve | ||||
| 3.3.3Appropriationtoowners(orshareholders) | -390,087,134.64 | -960,052.07 | -391,047,186.71 | |
| 3.3.4Other | ||||
| 3.4Transferswithinowners’equity | ||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | ||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | ||||
| 3.4.3Lossoffsetbysurplusreserves | ||||
| 3.4.4Other | ||||
| 3.5Specificreserve | ||||
| 3.5.1Increaseintheperiod | ||||
| 3.5.2Usedin |
theperiod
| theperiod | |||||||||||
| 3.6Other | 103,624,381.91 | 103,624,381.91 | |||||||||
| 4.Balancesasattheendoftheperiod | 2,407,945,408.00 | 208,356,624.21 | -10,538,219.08 | 1,227,564,785.19 | 4,271,408,192.21 | 1,346,631,520.26 | 9,451,368,310.79 |
2017
Unit:RMB
| Item | 2017 | ||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||
| 1.Balancesasattheendoftheprioryear | 2,407,945,408.00 | 79,723,092.04 | -6,932,104.65 | 847,908,466.28 | -427,163,254.63 | 417,017,287.63 | 3,318,498,894.67 | ||||||
| Add:Adjustmentsforchangedaccountingpolicies | |||||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | |||||||||||||
| Adjustmentsforbusinesscombinationsundercommon | |||||||||||||
control
| control | |||||||||||
| Otheradjustments | |||||||||||
| 2.Balancesasatthebeginningoftheyear | 2,407,945,408.00 | 79,723,092.04 | -6,932,104.65 | 847,908,466.28 | -427,163,254.63 | 417,017,287.63 | 3,318,498,894.67 | ||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 25,009,150.26 | 10,629,563.60 | 369,736,408.51 | 4,687,288,747.20 | -212,972,956.85 | 4,879,690,912.72 | |||||
| 3.1Totalcomprehensiveincome | 10,629,563.60 | 5,057,025,155.71 | 29,636,931.01 | 5,097,291,650.32 | |||||||
| 3.2Capitalincreasedandreducedbyowners | -241,190,603.80 | -241,190,603.80 | |||||||||
| 3.2.1Ordinarysharesincreasedbyshareholders | -235,037,235.08 | -235,037,235.08 | |||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | -1,419,284.06 | -1,419,284.06 | |||||||||
| 3.2.4Other |
3.3Profitdistribution
| 3.3Profitdistribution | 369,736,408.51 | -369,736,408.51 | -1,419,284.06 | -1,419,284.06 | ||
| 3.3.1Appropriationtosurplusreserves | 369,736,408.51 | -369,736,408.51 | ||||
| 3.3.2Appropriationtogeneralreserve | ||||||
| 3.3.3Appropriationtoowners(orshareholders) | -1,419,284.06 | -1,419,284.06 | ||||
| 3.3.4Other | ||||||
| 3.4Transferswithinowners’equity | ||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | ||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | ||||||
| 3.4.3Lossoffsetbysurplusreserves | ||||||
| 3.4.4Other | ||||||
| 3.5Specific |
reserve
| reserve | |||||||||||
| 3.5.1Increaseintheperiod | |||||||||||
| 3.5.2Usedintheperiod | |||||||||||
| 3.6Other | 25,009,150.26 | 25,009,150.26 | |||||||||
| 4.Balancesasattheendoftheperiod | 2,407,945,408.00 | 104,732,242.30 | 3,697,458.95 | 1,217,644,874.79 | 4,260,125,492.57 | 204,044,330.78 | 8,198,189,807.39 |
8.StatementsofChangesinOwners’EquityoftheCompanyastheParent2018
Unit:RMB
| Item | 2018 | ||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | |||||||||
| 1.Balancesasattheendoftheprioryear | 2,407,945,408.00 | 111,525,163.22 | -1,970,304.62 | 1,217,644,874.79 | 3,327,627,676.56 | 7,062,772,817.95 | |||||
| Add:Adjustmentsforchangedaccountingpolicies | |||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | |||||||||||
| Otheradjustments | 8,575,762.89 | 13,352,205.34 | 21,927,968.23 | ||||||||
| 2.Balancesasatthebeginningoftheyear | 2,407,945,408.0 | 120,100,926.11 | -1,970,304. | 1,217,644,874 | 3,340,979,881. | 7,084,700,786.1 | |||||
| 0 | 62 | .79 | 90 | 8 | |||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -6,082,859.32 | 788,087.31 | 9,919,910.40 | -300,807,941.05 | -296,182,802.66 | ||||
| 3.1Totalcomprehensiveincome | 788,087.31 | 99,199,103.99 | 99,987,191.30 | ||||||
| 3.2Capitalincreasedandreducedbyowners | |||||||||
| 3.2.1Ordinarysharesincreasedbyshareholders | |||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | |||||||||
| 3.2.4Other | |||||||||
| 3.3Profitdistribution | 9,919,910.40 | -400,007,045.04 | -390,087,134.64 | ||||||
| 3.3.1Appropriationtosurplusreserves | 9,919,910.40 | -9,919,910.40 | |||||||
| 3.3.2Appropriationtoowners(orshareholders) | -390,087,134.64 | -390,087,134.64 | |||||||
| 3.3.3Other | |||||||||
| 3.4Transferswithinowners’equity | |||||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | |||||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves |
3.4.3Lossoffsetbysurplusreserves
| 3.4.3Lossoffsetbysurplusreserves | |||||||||
| 3.4.4Other | |||||||||
| 3.5Specificreserve | |||||||||
| 3.5.1Increaseintheperiod | |||||||||
| 3.5.2Usedintheperiod | |||||||||
| 3.6Other | -6,082,859.32 | -6,082,859.32 | |||||||
| 4.Balancesasattheendoftheperiod | 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 |
2017
Unit:RMB
| Item | 2017 | ||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | |||||||||
| 1.Balancesasattheendoftheprioryear | 2,407,945,408.00 | 64,794,108.39 | 6,714,437.62 | 847,908,466.28 | -589,696,203.91 | 2,737,666,216.38 | |||||
| Add:Adjustmentsforchangedaccountingpolicies | |||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | |||||||||||
| Otheradjustments | 7,350,000.00 | -25,347,306.92 | -17,997,306.92 | ||||||||
| 2.Balancesasatthebeginningof | 2,407,945,408.0 | 72,144,108.39 | 6,714,437.6 | 847,908,466.2 | -615,043,510. | 2,719,668,909.4 | |||||
theyear
| theyear | 0 | 2 | 8 | 83 | 6 | ||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 39,381,054.83 | -8,684,742.24 | 369,736,408.51 | 3,942,671,187.39 | 4,343,103,908.49 | ||||
| 3.1Totalcomprehensiveincome | -8,684,742.24 | 4,312,407,595.90 | 4,303,722,853.66 | ||||||
| 3.2Capitalincreasedandreducedbyowners | |||||||||
| 3.2.1Ordinarysharesincreasedbyshareholders | |||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | |||||||||
| 3.2.4Other | |||||||||
| 3.3Profitdistribution | 369,736,408.51 | -369,736,408.51 | |||||||
| 3.3.1Appropriationtosurplusreserves | 369,736,408.51 | -369,736,408.51 | |||||||
| 3.3.2Appropriationtoowners(orshareholders) | |||||||||
| 3.3.3Other | |||||||||
| 3.4Transferswithinowners’equity | |||||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | |||||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves |
3.4.3Lossoffsetbysurplusreserves
| 3.4.3Lossoffsetbysurplusreserves | |||||||||
| 3.4.4Other | |||||||||
| 3.5Specificreserve | |||||||||
| 3.5.1Increaseintheperiod | |||||||||
| 3.5.2Usedintheperiod | |||||||||
| 3.6Other | 39,381,054.83 | 39,381,054.83 | |||||||
| 4.Balancesasattheendoftheperiod | 2,407,945,408.00 | 111,525,163.22 | -1,970,304.62 | 1,217,644,874.79 | 3,327,627,676.56 | 7,062,772,817.95 |
KonkaGroupCo.,Ltd.NotestoFinancialStatements2018
(Allamountsareexpressed,unlessotherwisestated,inRenminbi(RMB).)I.CompanyProfile1.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.ShareCapitalChangesuponEstablishmentOn27November1991,withapprovalfromtheSRYFZNo.102[1991]documentasissuedbythePeople’sBankofChinaShenzhenSpecialEconomicZoneBranch,ShenzhenKonkaElectronicCo.,Ltd.,during8December1991—31December1991,hasissued128,869,000RMBordinaryshares(A-share)ataparvalueofRMB1.00pershare,ofwhichtheoriginalnetassetswereconvertedinto98,719,000state-ownedinstitutionalshares,30,150,000newshareswereissued,including26,500,000circulatingsharesissuedtothepublicand3,650,000staffsharesissuedtothestaffoftheCompany.On29January1992,withapprovalfromtheSRYFZNo.106[1991]documentasissuedbythePeople’sBankofChinaShenzhenSpecialEconomicZoneBranch,ShenzhenKonkaElectronicCo.,Ltd.,during20December1991—31January1992,hasissuedtoinvestorsabroad58,372,300RMBspecialshares(B-share)ataparvalueofRMB1.00pershare,ofwhich48,372,300sharesheldbytheformerforeigninvestorandfounder—HongKongGanghuaElectronicGroupCo.,Ltd.areconvertedintoforeignlegalperson’sshares,and10,000,000B-sharesareissuedadditionally.On10April1993,theProposalonProfitDistributionandDividendPayout1992wasadoptedatthesecondgeneralmeetingofshareholdersoftheCompany.WithapprovalfromtheSZBFNo.2[1993]documentasissuedbyShenzhenSecuritiesRegulatoryOffice,the
CompanybegantoperformdividendpolicyforFY1992asof30April1993:distributingRMB0.90incashplus3.5bonussharesforevery10sharestoallshareholders.Thetotalcapitalstockreached187,473,150sharesafterthisdistribution.On18April1994,theProposalonProfitDistributionandDividendPayout1993wasadoptedatthethirdgeneralmeetingofshareholdersoftheCompany.WithapprovalfromtheSZBFNo.115[1994]documentasissuedbyShenzhenSecuritiesRegulatoryOffice,theCompanybegantoperformdividendpolicyforFY1993asof10June1994:distributingRMB1.10incashplus5bonusshares(including4.4profitbonussharesand0.6bonussharecapitalizedfromcapitalpublicreserve)forevery10sharestoallshareholders.Thetotalcapitalstockreached281,209,724sharesafterthisdistributionandcapitalizationfromcapitalpublicreserve.On2June1994,inaccordancewiththeprovisionsthat“staffsharescouldgopublicandbetransferredsixmonthsafterlisting”,asjointlypromulgatedbytheStateCommissionforRestructuringtheEconomicSystemandtheStateCouncil’sSecuritiesCommission,thestaffsharesoftheCompanywasplannedtobelistedontheflowon6June1994,withthepriorconsentofShenzhenSecuritiesRegulatoryOfficeandShenzhenStockExchange.On8October1994,theProposalonNegotiableBonusSharesofB-ShareCorporateShareholders1992wasadoptedattheinterimgeneralmeetingofshareholdersoftheCompany.WithapprovalfromtheSZBFNo.224[1994]documentasissuedbyShenzhenSecuritiesRegulatoryOffice,the16,930,305.00bonussharesforFY1992grantedtoforeignlegalpersonswerelistedandnegotiatedatB-sharemarketon26October1994.On6February1996,theProposalonShareAllotmentModes1996wasadoptedattheinterimgeneralmeteringofshareholdersoftheCompany.WithapprovalfromtheSZBFNo.5[1996]documentasissuedbyShenzhenSecuritiesRegulatoryOffice,andre-examinationfromtheZJPSZNo.16[1996]documentandZJGZNo.2[1996]documentasissuedbyChinaSecuritiesRegulatoryCommission,on16July1996and29October1996,allshareholderswererespectivelyallottedthreesharesforeverytenexistingsharesheldatRMB6.28/A-shareandHKD5.85/B-share.Corporateshareholderstooktheirrespectiveexistingsharesasbasesforfullsubscriptionoftheallocableshares.Thetotalcapitalstockreached365,572,641.00sharesafterthisallotment.On25January1998,thePlanonShareAllotment1998wasadoptedattheinterimgeneralmeetingofshareholdersoftheCompany.WithapprovalfromtheZZBZNo.29[1998]
documentasissuedbyShenzhenSecuritiesRegulatoryOffice,andZJSZNo.64[1998]documentasissuedbyChinaSecuritiesRegulatoryCommission,on15July1998,negotiableA-shareswereallottedinproportionof3:10atRMB10.50/A-share.ForsuchreasonsascontinuedweaknessinB-sharesecondarymarket(lowerthanshareallotmentprice),B-sharenegotiationandallotmentplanwascancelled,andthecorporateshareholdersoftheCompanywaivedthepreemptiveright.Thetotalcapitalstockreached389,383,603sharesafterthisallotment.On30June1999,theProposalonProfitDistributionandCapitalizationfromCapitalPublicReserve1998wasadoptedattheeighthgeneralmeetingofshareholdersoftheCompany.On20August1999,theprofitdistributionforFY1998wascarriedout:allshareholderswerepresentedRMB3.00incashforevery10shares,plus2sharescapitalizedfromcapitalpublicreserve.Thetotalcapitalstockreached467,260,323.00sharesafterthiscapitalization.On30June1999,thePlanonA-ShareIssueforCapitalIncreasewasadoptedattheeighthgeneralmeetingofshareholdersoftheCompany.WithapprovalfromtheZJFXZNo.140[1999]documentasissuedbyChinaSecuritiesRegulatoryCommission,on1November1999,80,000,000.00A-shareswereadditionallyissuedtothepublicatRMB15.50/share.Thetotalcapitalstockreached547,260,323.00sharesafterthisadditionalissue.On30May2000,thePlanonProfitDistributionandDividendPayout1999wasadoptedattheninthgeneralmeetingofshareholdersoftheCompany.On25July2000,theprofitdistributionforFY1999wascarriedout:allshareholdersweredistributedRMB4.00incashplus1bonussharesforevery10shares.Thetotalcapitalstockreached601,986,352.00sharesafterthisdistribution.On26May2008,the2017generalmeetingofshareholdersswasconvened,duringwhichthefollowingresolutionswerediscussedandadopted:basedonthetotalcapitalstockof601,986,352.00sharesfortheyearended31December2007,capitalizationfromcapitalpublicreservewasmadetoallshareholdersataproportionof1:1,namely10newsharesforevery10existingshares.On16December2008,withapprovalfromtheSMGZFNo.2662[2008]documentasissuedbyShenzhenBureauofTradeandIndustry,theCompanywasagreedtoincreaseitssharecapital,andwentthroughtheformalitiesforregistrationofchangeswiththeadministrationforindustryandcommerceon10April2009.Thetotalcapitalstockreached1,203,972,704.00sharesafterchange.Accordingtotheregulationsofthe20151
st
ExtraordinaryGeneralMeetingandtherevised
articlesoftheCompany,theCompanyappliedtoincreasetheregisteredcapitalofRMB1,203,972,704.00,whichtotallyturnedintocapitalreservewiththealteredregisteredcapitalofRMB2,407,945,408.00andmanagedtheindustrialandcommercialalternationregistrationon28January2016withthealteredsharecapitalof2,407,945,408.00shares.3.Approvedbusinessscope:researchanddevelopment,productionandoperationofsuchintelligenthouseholdelectricappliancesastelevisions,refrigerators,washingmachines,andpersonalelectronicappliances,andkitchenandbathroomelectronicappliances;manufacturingandapplicationofhomeAV,IPTVset-topboxes,OTTterminalproducts,digitalTVreceivers(includinggroundreceivingequipmentofsatellitetelevisionbroadcasting),digitalproducts,intelligentwearableproducts,intelligenthealthproducts,intelligentelectricproducts,intelligentswitchplug,powerbank,mobilecommunicationequipmentsandterminalproducts,daily-useelectronicproducts,automotiveelectronicproducts,satellitenavigationsystems,intelligenttransportationsystems,fire-fightingandsecuritysystems,officeequipments,computers,displays,largescreendisplaysystems;LED(OLED)backlight,illumination,light-emittingdevices,andpackagingthereof;TouchTVAIO,wirelessbroadcastingtelevisiontransitingequipment;emergencybroadcastsystemequipment,electronicpartsandcomponents,moulds,plasticandrubberproducts,andpackingmaterials,designandin-doorinstallationsecurityproducts,monitoringproducts,wirelessandcabledigitaltelevisionsystemandsystemintegration,andtechnicalconsultancyandafter-salepaidservicesofrelatedproducts(exceptmobilephone,theotherproductsintheabovebusinessscopearemanufacturedinotherplacesoutsideShenzhen);Wholesale,retail,import&exportandrelevantsupportservicesoftheaforesaidproducts(includingspareparts)(Commoditiessubjecttostatetradingmanagementarenotinvolved.Productsinvolvedinquota,licensemanagementandotherspecifiedmanagementshallbesubjecttotherelevantstateprovisions.);saleofself-developedtechnologicalachievements;provisionofmaintenanceservices,technicalconsultantserviceforelectronicproducts;ordinarycargotransportation,domesticfreightforwarding,internationalfreightforwarding,andwarehousingservices;managementofsupplychain,consultancyonenterprisemanagement;andself-ownedpropertyleasingandmanagementservices,recoveryofwasteelectricalappliancesandelectronicproducts(excludingdissembling)(operatedbybranchoffices);andoutsourcingservicesofinformationtechnologyandbusinessproceduresbymeansofundertakingservicesinthewayofoutsourcing,includingmanagementandmaintenanceof
systemapplication,managementofinformationtechnology,bankbackgroundservice,financialsettlement,humanresourceservice,softwaredevelopment,callcentre,anddataprocessing.Import&exportbusiness:domestictrade;internationaltrade(excludingmonopoly,exclusivecontrol,andmonopolizedcommodities);sellingsecurityproducts,intelligenthouseholdproducts,doorlock,andhardware;doingvariousbusinessentrustedby(Mobile,Unicom,Telecom,andBC&TV);Waterpollutioncontrol,solidwastepollutiontreatment,hazardouswastepollutioncontrol,airpollutioncontrol,soilpollutioncontrolandremediation;production(excludingmining)andsalesofnon-metallicmineralproductsandmaterials;development,productionandsalesofspecificmaterialsforsemiconductorintegratedcircuitsandcomponent;assembly,productionandsalesofintegrateddeviceelectronics,design,R&D,manufacturing,testing,packagingandsalesofsemiconductorintegratedcircuits,andsales,integratedcircuitproductsandrelatedtechnicalservices,technologydevelopment,transfer,importandexportinthefieldofsemiconductorintegratedcircuit
technology.
4.TheCompanyanditssubsidiariesaremainlyengagedintheproductionandsalesofcolourTVs,whitegoods,mobilephones,etc.;tradebusinessofsupplychain,environmentalprotection,commercialfactoring,andetc.5.ThefinancialstatementscontainedhereinhavebeenapprovedforissuebytheBoardofDirectorsoftheCompanyon28March2018.6.Therewere114subsidiariesincludedintheconsolidationscopeof2018oftheCompany,andpleaserefertotheNotesVIII.“Equitiesamongotherentities”fordetails.Therewere68subsidiariesincreasedand6decreasedintheconsolidationscopeoftheReportingPeriodoverthelastperiodoftheCompany,fordetails,seetheNotesVII.“Changesoftheconsolidationscope”.7.AchecklistofcorporatenamesandtheirabbreviationsmentionedinthisReport
| Corporatename | Abbreviation |
| ShenzhenKonkaE-displayCo.,Ltd. | KonkaE-display |
| ShenzhenE-displayServiceCo.,Ltd. | E-displayService |
| ShenzhenKangqiaoEasyChainTechnologyCo.,Ltd. | KangqiaoEasyChain |
| KonkaVenturesDevelopment(Shenzhen)Co.,Ltd. | KonkaVentures |
| YantaiKonkaHealthcareEnterpriseServiceCo.,Ltd. | YantaiKonka |
| ChengduKonkaIncubatorManagementCo.,Ltd. | ChengduKonkaIncubator |
| ChengduAnrenKonkaCulturalandCreativeIncubatorManagementCo.,Ltd. | ChengduAnren |
| Corporatename | Abbreviation |
| GuiyangKonkaEnterpriseServiceCo.,Ltd. | KonkaEnterpriseService |
| NanjingChuanghuiSmartTechnologyCo.,Ltd. | ChuanghuiSmart |
| GuizhouKonkaEnterpriseManagementServiceCo.,Ltd. | KonkaEnterpriseManagement |
| YibinKonkaIncubatorManagementCo.,Ltd. | YibinKonkaIncubator |
| ShenzhenKonkaCross-BorderTechnologicalInnovationServiceCo.,Ltd. | Cross-BorderTechnologicalInnovation |
| AnhuiKonkaElectronicCo.,Ltd. | AnhuiKonka |
| AnhuiKangzhiTradeCo.,Ltd. | KangzhiTrade |
| KonkaFactoring(Shenzhen)Co.,Ltd. | KonkaFactoring |
| YoushiKangrongCultureCommunicationCo.,Ltd. | YoushiKangrong |
| ChuzhouKonkaTechnology&IndustryDevelopmentCo.,Ltd. | ChuzhouKonkaTID |
| ShenzhenKonkaUnifortuneSupplyChainManagementCo.,Ltd. | KonkaUnifortune |
| JialiInternational(HongKong)Limited | JialiInternational |
| ShenzhenWankaidaScienceandTechnologyCo.,Ltd. | Wankaida |
| DongguanKonkaElectronicCo.,Ltd. | DongguanKonka |
| ShenzhenKonkaTelecommunicationsTechnologyCo.,Ltd. | TelecommunicationTechnology |
| ShenzhenKonkaElectricalAppliancesCo.,Ltd. | KonkaElectricalAppliances |
| MudanjiangArcticOceanAppliancesCo.,Ltd. | MudanjiangAppliances |
| Konka(Europe)Co.,Ltd. | KonkaEurope |
| ShenzhenKonkaCommercialSystemTechnologyCo.,Ltd. | CommercialSystemTechnology |
| ShenzhenKonkaElectricalAppliancesCo.,Ltd. | KonkaElectricalAppliances |
| HainanKonkaMaterialTechnologyCo.,Ltd. | KonkaMaterial |
| ShenzhenShushidaLogisticsServiceCo.,Ltd. | ShushidaLogistics |
| ShenzhenKonkaMobileInterconnectionTechnologyCo.,Ltd. | MobileInterconnection |
| SichuanKonkaSmartterminalTechnologyCo.,Ltd | SichuanKonka |
| AnhuiKonkaTongchuangElectricalAppliancesCo.,Ltd. | AnhuiTongchuang |
| AnhuiKonkaElectricalApplianceTechnologyCo.,Ltd. | AnhuiElectricalAppliance |
| HenanFrestecRefrigerationApplianceCo.,Ltd. | FrestecRefrigeration |
| HenanFrestecElectricalAppliancesCo.,Ltd. | FrestecElectricalAppliances |
| HenanFrestecHouseholdAppliancesCo.,Ltd. | FrestecHouseholdAppliances |
| ShenzhenKonkaPengrunTechnology&IndustryCo.,Ltd. | KonkaPengrun |
| JiaxinTechnologyCo.,Ltd. | JiaxinTechnology |
| E3info(Hainan)TechnologyCo.,Ltd. | E3info |
| ShenzhenKonkaYifangTechnologyCo.,Ltd. | YifangTechnology |
| DongguanKonkaPackingMaterialsCo.,Ltd. | DongguanPacking |
| Corporatename | Abbreviation |
| ShenzhenE2infoNetworkTechnologyCo.,Ltd. | E2info |
| BeijingKonkaElectronicCo.,Ltd. | BeijingKonkaElectronic |
| TianjinKonkaLeasingCo.,Ltd. | KonkaLeasing |
| ShenzhenKonkaElectronicFittingsTechnologyCo.,Ltd. | FittingsTechnology |
| BoluoKonkaPrecisionTechnologyCo.,Ltd. | BoluoKonkaPrecision |
| XiamenDalongTradingCo.,Ltd. | XiamenDalong |
| BoluoKonkaPCBCo.,Ltd. | BoluoKonka |
| ChongqingQingjiaElectronicsCo.,Ltd. | ChongqingQingjia |
| KunshanKangshengInvestmentDevelopmentCo.,Ltd. | KunshanKangsheng |
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | KaikaiShijie |
| HongKongKonkaCo.,Ltd. | HongKongKonka |
| KonkaElectricalAppliancesInvestment&DevelopmentCo.,Ltd. | KonkaElectricalAppliancesInvestment |
| ChainKingdomCo.,Limited | ChainKingdom |
| ChainKingdom(Shenzhen)Co.,Limited | ChainKingdom(Shenzhen) |
| ShenzhenKonkaPlasticProductsCo.,Ltd. | PlasticProducts |
| KonkaSmartTechLimited | KonkaSmartTech |
| Kangjietong(HongKong)Limited | Kangjietong |
| KonkaElectricalAppliancesInternationalTradingCo.,Ltd. | KonkaElectricalAppliancesInternationalTrading |
| ShenzhenKonkaInvestmentHoldingCo.,Ltd. | KonkaInvestment |
| YibinKonkaTechnologyParkOperationCo.,Ltd. | YibinKonkaTechnologyPark |
| SichuanKonkaIndustrialNewTownDevelopmentCo.,Ltd. | IndustrialNewTown |
| ShenzhenKonkaCapitalEquityInvestmentManagementCo.,Ltd. | KonkaCapital |
| KonkaSuiyongInvestment(Shenzhen)Co.,Ltd. | KonkaSuiyong |
| HainanKonkaTechnologyIndustryDevelopmentCo.,Ltd. | HainanTechnology |
| ShenzhenKangquanEnterpriseManagementConsultingCo.,Ltd. | KangquanEnterprise |
| ShenzhenKonkaElectronicsTechnologyCo.,Ltd. | ElectronicsTechnology |
| GuangDongXingDaHongYeElectronicCo.,Ltd. | XingDaHongYe |
| ShanghaiXinfengZhuoqunPCBCo.,Ltd. | ShanghaiXinfeng |
| ZhongshanZeweiKechuangInvestmentManagementCo.,Ltd. | ZhongshanZewei |
| NanjingKonkaSmartTechnologyCo.,Ltd. | NanjingKonka |
| AnhuiKonkaZhilianE-CommerceCo.,Ltd. | AnhuiZhilian |
| KonkaHuanjia(Dalian)EnvironmentalTechnologyCo.,Ltd. | KonkaHuanjia |
| ShanghaiKonkaIndustrialCo.,Ltd. | ShanghaiKonka |
| Corporatename | Abbreviation |
| ChuzhouKangyongHealthIndustryDevelopmentCo.,Ltd. | ChuzhouKangyong |
| YantaiKonkaIndustrialCo.,Ltd. | YantaiKonka |
| YantaiKangjinTechnologyDevelopmentCo.,Ltd. | YantaiKangjin |
| ShandongKangxinIndustrialDevelopmentCo.,Ltd. | ShandongKangxin |
| ShandongEconTechnologyCo.,Ltd.(inclusiveofitsconsolidatedsubsidiaries) | EconTechnology |
| JiangxiKonkaNewMaterialTechnologyCo.,Ltd. | JiangxiKonka |
| JiangxiXinfengMicrocrystallineJadeCo.,Ltd. | XinfengMicrocrystalline |
| JiangxiGoldenPhoenixNanoCrystallizedGlassCo.,Ltd. | NanoCrystallizedGlass |
| ShenzhenKangxinweiSemiconductorCo.,Ltd. | ShenzhenKangxinwei |
| ShenzhenMeixinSemiconductorTechnologyCo.,Ltd. | ShenzhenMeixin |
| HefeiKangxinweiStorageTechnologyCo.,Ltd. | HefeiKangxinwei |
| ShenzhenNianhuaEnterpriseManagementCo.,Ltd. | ShenzhenNianhua |
| ShenzhenKonkaEco-DevelopmentInvestmentCo.,Ltd. | KonkaEco-Development |
| KonkaRongheIndustrialTechnology(Foshan)Co.,Ltd. | KonkaRonghe |
| SuiningKonkaIndustrialParkDevelopmentCo.,Ltd. | SuiningKonkaIndustrialPark |
| SichuanKangjiatongSupplyChainManagementCo.,Ltd. | Kangjiatong |
| ShenzhenKonkaSuyuanInvestmentIndustrialCo.,Ltd. | KonkaSuyuan |
II.BasisforthePreparationofFinancialStatementsWiththegoing-concernassumptionasthebasisandbasedontransactionsandothereventsthatactuallyoccurred,theGrouppreparedfinancialstatementsinaccordancewithTheAccountingStandardsforBusinessEnterprises—BasicStandardissuedbytheMinistryofFinancewithDecreeNo.33andrevisedwithDecreeNo.76,the42specificaccountingstandards,theApplicationGuidanceofAccountingStandardsforBusinessEnterprises,theInterpretationofAccountingStandardsforBusinessEnterprisesandotherregulationsissuedandrevisedfrom15February2006onwards(hereinafterjointlyreferredtoastheAccountingStandardsforBusinessEnterprises,ChinaAccountingStandardsor“CAS”),aswellastheRulesforPreparationConventionofDisclosureofPublicOfferingCompaniesNo.15–GeneralRegulationsforFinancialReporting(revisedin2014)byChinaSecuritiesRegulatoryCommission.InaccordancewithrelevantprovisionsoftheAccountingStandardsforBusinessEnterprises,theGroupadoptedtheaccrualbasisinaccounting.Exceptforsomefinancialinstrumentsandinvestmentproperties,thefinancialstatementsarebasedonhistoriccoststomeasure.Non-currentassetsheldforsaleispricedbytheloweramountbetweentheamountsthatfair
valueminusestimatedamountandtheoriginalbookvaluethatmeetstheheldforsalerequirement.Whereimpairmentoccurredonanasset,animpairmentreservewaswithdrawnaccordinglypursuanttorelevantrequirements.III.StatementofCompliancewiththeAccountingStandardsforBusinessEnterprisesThefinancialstatementspreparedbytheGroupareincompliancewithincompliancewiththeAccountingStandardsforBusinessEnterprises,whichfactuallyandcompletelypresenttheCompany’sfinancialpositionsasat31December2018,businessresultsandcashflowsfor2018,andotherrelevantinformation.Inaddition,theCompany’sandtheGroup’sfinancialstatementsmeettherequirementsofdisclosingfinancialstatementsandnotestheretostatedintheRulesforPreparationConventionofDisclosureofPublicOfferingCompaniesNo.15–GeneralRegulationsforFinancialReporting(revisedin2014)byChinaSecuritiesRegulatoryCommission.IV.ImportantAccountingPoliciesandEstimationsTheCompanyanditssubsidiariesaremainlyengagedintheproductionandsalesofcolourTVs,whitegoods,mobilephones,etc.;tradebusinessofsupplychain,environmentalprotection,commercialfactoring,andetc.TheCompanyanditssubsidiariesformulatedcertainspecificaccountingpoliciesandaccountingestimatesaccordingtotheactualproductionandoperationcharacteristicsandtheregulationsoftherelevantASBEonthetransactionsandeventsoftherevenuesrecognition,therecognitionofcompletionofconstructioncontract,andresearchdevelopmentexpenditure.Forthedetails,pleaserefertoeachdescriptionofNotesIV.23“Revenues”.Forthenotesofthesignificantaccountingjudgmentandestimationsmadebythemanagementlayer,pleaserefertoNotesIV.29“Significantaccountingjudgmentandestimations”.1.FiscalPeriodTheGroup’sfiscalperiodsincludefiscalyearsandfiscalperiodsshorterthanacompletefiscalyear.TheGroup’sfiscalyearstartsonJanuary1andendsonDecember31ofeveryyearaccordingtotheGregoriancalendar.
2.OperatingCycleAnormaloperatingcyclereferstoaperiodfromtheGrouppurchasingassetsforprocessingtorealizingcashorcashequivalents.AnoperatingcyclefortheGroupis12months,whichisalsotheclassificationcriterionfortheliquidityofitsassetsandliabilities.3.RecordingCurrencyRenminbiisthedominantcurrencyusedintheeconomiccircumstanceswheretheGroupanditsdomesticsubsidiariesareinvolved.Therefore,theGroupanditsdomesticsubsidiariesuseRenminbiastheirbookkeepingbasecurrency.TheoverseassubsidiariesoftheCompanyshouldconfirmtheHKDollarandEuroaastheirrecordingcurrencyaccordingitsmajoreconomicenvironmentoftheiroperatingaddress.AndtheGroupadoptedRenminbiasthebookkeepingbasecurrencywhenpreparingthefinancialstatementsfortheReportingYear.4.AccountingTreatmentMethodsforBusinessCombinationsundertheSameControlornotundertheSameControlBusinesscombinations,itisrefertotwoormoreseparateenterprisesmergetoformareportingentitytransactionsorevents.Businesscombinationisdividedintounderthesamecontrolandthosenonunderthesamecontrol.(1)BusinesscombinationsunderthesamecontrolAbusinesscombinationunderthesamecontrolisabusinesscombinationinwhichallofthecombiningenterprisesareultimatelycontrolledbythesamepartyorthesamepartiesbothbeforeandafterthebusinesscombinationandonwhichthecontrolisnottemporary.Inabusinesscombinationunderthesamecontrol,thepartywhichobtainscontrolofothercombiningenterprise(s)onthecombiningdateisthecombiningparty,theothercombiningenterprise(s)is(are)thecombinedparty.The“combiningdate”referstothedateonwhichthecombiningpartyactuallyobtainscontrolonthecombinedparty.Theassetsandliabilitiesthatthecombiningpartyobtainsinabusinesscombinationshallbemeasuredonthebasisoftheircarryingamountinthecombinedpartyonthecombiningdate.Asforthebalancebetweenthecarryingamountofthenetassetsobtainedbythecombiningpartyandthecarryingamountoftheconsiderationpaidbyit(orthetotalparvalueofthesharesissued),theadditionalpaid-incapital(sharepremium)shallbeadjusted.Ifthe
additionalpaid-incapital(sharepremium)isnotsufficienttobeoffset,theretainedearningsshallbeadjusted.Thedirectcostforthebusinesscombinationofthecombiningpartyshallberecordedintotheprofitsandlossesatthecurrentperiod.(2)BusinesscombinationsnotunderthesamecontrolAbusinesscombinationnotunderthesamecontrolisabusinesscombinationinwhichthecombiningenterprisesarenotultimatelycontrolledbythesamepartyorthesamepartiesbothbeforeandafterthebusinesscombination.Inabusinesscombinationnotunderthesamecontrol,thepartywhichobtainsthecontrolonothercombiningenterprise(s)onthepurchasedateistheacquirer,andothercombiningenterprise(s)is(are)theacquiree.Forabusinesscombinationnotunderthesamecontrol,thecombinationcostsshallincludethefairvalues,ontheacquisitiondate,oftheassetspaid,theliabilitiesincurredorassumedandtheequitysecuritiesissuedbytheacquirerinexchangeforthecontrolontheacquiree,theexpensesforaudit,legalservicesandassessment,andotheradministrativeexpenses,whicharerecordedintotheprofitsandlossesinthecurrentperiod.Thetradingexpensesfortheequitysecuritiesordebtsecuritiesissuedbytheacquirerasthecombinationconsiderationshallberecordedintotheamountofinitialmeasurementoftheequitysecuritiesordebtsecurities.Theinvolvedcontingentconsiderationshallberecordedintothecombinationcostsatitsfairvalueontheacquiringdate.Whereneworfurtherevidencesemerge,within12monthssincetheacquiringdate,againsttheexistingcircumstancesontheacquiringdateandthecontingentconsiderationthusneedstobeadjusted,thecombinedgoodwillshallbeadjustedaccordingly.Thecombinationcostsoftheacquirerandtheidentifiablenetassetsobtainedbyitinthecombinationshallbemeasuredaccordingtotheirfairvaluesattheacquiringdate.Theacquirershallrecognizethepositivebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquireeasbusinessreputation.Wherethecombinationcostsarelessthenthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquiree,theacquirershallre-examinethemeasurementofthefairvaluesoftheidentifiableassets,liabilitiesandcontingentliabilitiesitobtainsfromtheacquireeaswellasthecombinationcosts.If,afterthere-examination,thecombinationcostsarestilllessthanthefairvalueoftheidentifiablenetassetsitobtainsfrom
theacquiree,theacquirershallrecordthebalanceintotheprofitsandlossesofthecurrentperiod.Asforthedeductibletemporarydifferencestheacquirerobtainsfromtheacquireewhicharenotrecognizedintodeferredincometaxliabilitiesduetotheirnotmeetingtherecognitionstandards,ifneworfurtherinformationshowsthattherelevantsituationhasexistedontheacquiringdateandtheeconomicbenefitsbroughtbythedeductibletemporarydifferencestheacquirerobtainsfromtheacquireeontheacquiringdatecanberealized,theyshallberecognizedintodeferredincometaxassetsandtherelevantgoodwillshallbereduced.Wherethegoodwillisnotsufficienttobeoffset,thedifferenceshallberecognizedintotheprofitsandlossesinthecurrentperiod.Inothercircumstancesthantheabove,wherethedeductibletemporarydifferencesarerecognizedintodeferredincometaxassetsontheacquiringdate,theyshallberecordedintotheprofitsandlossesinthecurrentperiod.Inabusinesscombinationnotundersamecontrolrealizedbytwoormoretransactionsofexchange,accordingtoabouttheNo.5NoticeabouttheTreasuryIssuingtheAccountingStandardsforEnterprises(Financeaccounting)[2012]No.19andtheArticle51ofAccountingStandardsforEnterprisesNo.33—ConsolidatedFinancialStatementsCriterionaboutthe“packagedeal”(seeNoteIV,5(2)),Whetherthedealsare“packagedeal”ornot,belongtothe“packagedeal”,seethepreviousparagraphsdescribedinthissectionandNoteIV,13“longtermequityinvestment”andconductaccountingtreatment,thosenotbelongtothe“packagedeal”distinguishbetweentheindividualfinancialstatementsandtheconsolidatedfinancialstatementsandconductrelevantaccountingtreatment.Intheindividualfinancialstatements,thesumofthebookvalueandnewinvestmentcostoftheGroupholdsintheacquireebeforetheacquiringdateshallbeconsideredasinitialcostoftheinvestment.OtherrelatedcomprehensivegainsinrelationtotheequityintereststhattheGroupholdsintheacquireebeforetheacquiringdateshallbetreatedonthesamebasisastheacquireedirectlydisposestherelatedassetsorliabilitieswhendisposingtheinvestment(thatis,exceptforthecorrespondingshareinthechangesinthenetliabilitiesorassetswithadefinedbenefitplanmeasuredattheequitymethodarisingfromtheacquiree’sre-measurement,theothersshallbetransferredintocurrentinvestmentgains).IntheGroup’sconsolidatedfinancialstatements,asfortheequityintereststhattheGroupholdsintheacquireebeforetheacquiringdate,theyshallbere-measuredaccordingtotheir
fairvaluesattheacquiringdate;thepositivedifferencebetweentheirfairvaluesandcarryingamountsshallberecordedintotheinvestmentgainsfortheperiodincludingtheacquiringdate.OtherrelatedcomprehensivegainsinrelationtotheequityintereststhattheGroupholdsintheacquireebeforetheacquiringdateshallbetreatedonthesamebasisastheacquireedirectlydisposestherelatedassetsorliabilitieswhendisposingtheinvestment(thatis,exceptforthecorrespondingshareinthechangesinthenetliabilitiesorassetswithadefinedbenefitplanmeasuredattheequitymethodarisingfromtheacquiree’sre-measurement,theothersshallbetransferredintocurrentinvestmentgainsontheacquiringdate).5.MethodsforPreparingConsolidatedFinancialStatements(1)PrinciplefordeterminingtheconsolidationscopeTheconsolidationscopeforfinancialstatementsisdeterminedonthebasisofcontrol.Theterm“control”isthepoweroftheGroupuponaninvestee,withwhichitcantakepartinrelevantactivitiesoftheinvesteetoobtainvariablereturnsandisabletoinfluencetheamountofreturns.ThescopeofconsolidationincludestheCompanyanditsallsubsidiaries.AsubsidiaryisanenterpriseorentitycontrolledbytheGroup.Onceanychangesintherelevantfactsorsituationsresultedinanychangesintheelementsinvolvedintheaforesaiddefinitionof“control”,theCompanyshallcarryoutareassessment.(2)MethodsforpreparingtheconsolidatedfinancialstatementsSubsidiariesarefullyconsolidatedfromthedateonwhichtheGroupobtainscontrolontheirnetassetsandoperationdecision-makingandarede-consolidatedfromthedatewhensuchcontrolceases.Asforadisposedsubsidiary,itsoperatingresultsandcashflowsbeforethedisposaldatehasbeenappropriatelyincludedintheconsolidatedincomestatementandcashflowstatement;andasforsubsidiariesdisposedinthecurrentperiod,theopeningitemsintheconsolidatedbalancesheetarenotadjusted.Forasubsidiaryacquiredinabusinesscombinationnotunderthesamecontrol,itsoperatingresultsandcashflowsaftertheacquiringdatehavebeenappropriatelyincludedintheconsolidatedincomestatementandcashflowstatement,andtheopeningitemsandcomparativeitemsintheconsolidatedfinancialstatementsarenotadjusted.Forasubsidiaryacquiredinabusinesscombinationunderthesamecontrol,itsoperatingresultsandcashflowsfromthebeginningofthe
ReportingPeriodofthecombinationtothecombinationdatehavebeenappropriatelyincludedintheconsolidatedincomestatementandcashflowstatement,andthecomparativeitemsintheconsolidatedfinancialstatementsareadjustedatthesametime.ThefinancialstatementsofsubsidiariesareadjustedinaccordancewiththeaccountingpoliciesandaccountingperiodoftheGroupduringthepreparationoftheconsolidatedfinancialstatements,wheretheaccountingpoliciesandtheaccountingperiodsareinconsistentbetweentheGroupandsubsidiaries.Forasubsidiaryacquiredfromabusinesscombinationnotunderthesamecontrol,theindividualfinancialstatementsofthesubsidiaryareadjustedbasedonthefairvalueoftheidentifiablenetassetsattheacquisitiondate.Allsignificantinter-groupbalances,transactionsandunrealizedprofitsareoffsetintheconsolidatedfinancialstatements.Theportionofasubsidiary’sshareholders’equityandtheportionofasubsidiary’snetprofitsandlossesfortheperiodnotheldbytheGrouparerecognizedasminorityinterestsandminorityshareholderprofitsandlossesrespectivelyandpresentedseparatelyundershareholders’equityandnetprofitsintheconsolidationfinancialstatements.Theportionofasubsidiary’snetprofitsandlossesfortheperiodthatbelongtominorityinterestsispresentedastheitemof“minorityshareholderprofitsandlosses”underthebiggeritemofnetprofitsintheconsolidatedfinancialstatements.Wherethelossofasubsidiarysharedbyminorityshareholdersexceedstheportionenjoyedbyminorityshareholdersinthesubsidiary’sopeningowners’equity,minorityinterestsareoffset.WheretheGrouplossescontrolonitsoriginalsubsidiariesduetodisposalofsomeequityinvestmentsorotherreasons,theresidualequityinterestsarere-measuredaccordingtothefairvalueonthedatewhensuchcontrolceases.Thesummationoftheconsiderationobtainedfromthedisposalofequityinterestsandthefairvalueoftheresidualequityinterests,minustheportionintheoriginalsubsidiary’snetassetsmeasuredonacontinuousbasisfromtheacquisitiondatethatisenjoyablebytheGroupaccordingtotheoriginalshareholdingpercentageinthesubsidiary,isrecordedininvestmentgainsfortheperiodwhentheGroup’scontrolonthesubsidiaryceases.Othercomprehensiveincomesinrelationtotheequityinvestmentintheoriginalsubsidiaryaretreatedonthesameaccountingbasisastheacquireedirectlydisposestherelevantassetsorliabilities(thatis,exceptforthechangesinthenet
liabilitiesorassetswithadefinedbenefitplanresultedfromre-measurementoftheoriginalsubsidiary,therestshallallbetransferredintocurrentinvestmentgains)whensuchcontrolceases.AndsubsequentmeasurementisconductedontheresidualequityinterestsaccordingtotheNo.2AccountingStandardforBusinessEnterprises—Long-termEquityInvestmentsortheNo.22AccountingStandardforBusinessEnterprises—RecognitionandMeasurementofFinancialInstruments.Fordetails,seeNoteIV.13“longtermequityinvestment”orNoteIV.9“financialinstruments”.Ifthecompanydisposalstheequityinvestmentinthesubsidiarycompanyuntilthelossofcontrolthroughmultipletransactions,itisnecessarytodistinguishwhetherthetransactionsdisposingtheequityinvestmentinthesubsidiarycompanyuntilthelossofcontrolbelongtopackagetransactions.Allthetransactionterms,conditionsandeconomicimpactofthedisposalofsubsidiaries’equityinvestmentareinaccordancewithoneormoreofthefollowingconditions,whichusuallyindicatethemultipletransactions,shouldbeconsideredasapackagedealforaccountingtreatment.①Thesedealsareatthesametimeorundertheconditionofconsideringtheinfluenceofeachothertoconcluded;②Thesetransactionsonlybeasawholecanachieveacompletebusinessresult;③Theoccurrenceofadealdependsonatleastoneothertransactions；④Adealaloneisnoteconomical,itiseconomicalwithothertradingtogether.Thosenotbelongtoapackagedeal,eachofthemadealdependsoncircumstancesrespectivelyconductaccountingtreatmentinaccordancewiththeapplicableprinciplesof“partdisposalofsubsidiariesofalong-termequityinvestmentundertheconditionofnotlosingcontrolonitssubsidiaries”(seeNoteIV.13.(2)④)and“WheretheGrouplossescontrolonitsoriginalsubsidiariesduetodisposalofsomeequityinvestmentsorotherreasons”(Seethefrontparagraph)relevanttransactionsoftheGrouplossescontrolonitssubsidiariesduetodisposalofequityinvestmentsbelongingtoapackagedeal,consideredasatransactionandconductaccountingtreatment.However,Beforelosingcontrol,everydisposalcostandcorrespondingnetassetsbalanceofsubsidiaryofdisposalinvestmentareconfirmedasothercomprehensiveincomeinconsolidatedfinancialstatements,whichtogethertransferredintothecurrentprofitsandlossesinthelossofcontrol,whentheGrouplosingcontrolonitssubsidiary.6.ClassificationofJointArrangementsandAccountingTreatmentofJointOperationsAjointarrangementreferstoanarrangementjointlycontrolledbytwoparticipantsorabove.TheGroupclassifiesjointarrangementsintojointoperationsandjointventuresaccordingto
itsrightsanddutiesinthejointarrangements.AjointoperationreferstoajointarrangementwheretheGroupenjoysassetsandhastobearliabilitiesrelatedtothearrangement.AjointventurereferstoajointarrangementwheretheGroupisonlyentitledtothenetassetsofthearrangement.TheGroup’sinvestmentsinjointventuresaremeasuredattheequitymethodaccordingtotheaccountingpoliciesmentionedinNoteIV.13(2)②“Long-termequityinvestmentsmeasuredattheequitymethod”.Forajointoperation,theGroup,asajointoperator,recognizestheassetsandliabilitiesthatitholdsandbearsinthejointoperation,andrecognizesthejointly-heldassetsandjointly-borneliabilitiesaccordingtotheGroup’sstakeinthejointoperation;recognizestheincomefromsaleoftheGroup’sshareintheoutputofthejointoperation;recognizestheincomefromsaleofthejointoperation’soutputsaccordingtotheGroup’sstakeinit;andrecognizestheexpensesolelyincurredtotheGroupandtheexpenseincurredtothejointoperationaccordingtotheGroup’sstakeinit.WhentheGroup,asajointoperator,transfersorsellsassets(theassetsnotconstitutingbusiness,thesamebelow)tothejointoperation,orpurchasesassetsfromthejointoperation,beforetheassetsaresoldtoathirdparty,theGrouponlyrecognizestheshareoftheotherjointoperatorsinthegainsandlossesarisingfromthesale.WhereimpairmentoccurstotheassetsasprescribedinTheAccountingStandardNo.8forBusinessEnterprises—AssetImpairment,theGroupshallfullyrecognizesthelossforatransferorsaleofassetstoajointoperation;andshallrecognizethelossaccordingtoitsstakeinthejointoperationforapurchaseofassetsfromthejointoperation.7.RecognitionStandardforCashandCashEquivalentsIntheGroup’sunderstanding,cashandcashequivalentsincludecashonhand,anydepositthatcanbeusedforcover,andshort-term(usuallyduewithin3monthssincethedayofpurchase)andhighcirculatinginvestments,whichareeasilyconvertibleintoknownamountofcashandwhoserisksinchangeofvalueareminimal.
8.ForeignCurrencyBusinessesandTranslationofForeignCurrencyFinancialStatements(1)AccountingtreatmentsfortranslationofforeigncurrencytransactionsAsforaforeigncurrencytransaction,theCompanyshallconverttheamountinaforeigncurrencyintoamountinitsbookkeepingbaseatthespotexchangerate(usuallyreferringtothecentralparityratethatdayannouncedbythePeople’sBankofChina,thesamebelow)ofthetransactiondate,whileasforsuchtransactionsasforeignexchangeorinvolvinginforeignexchange,theCompanyshallconvertedintoamountinthebookkeepingbasecurrencyatactualexchangeratethetransactionisoccurred.(2)Accountingtreatmentsfortranslationofforeigncurrencymonetaryitemsandnon-monetaryitemsOnthebalancesheetdate,theforeigncurrencymonetaryitemsshallbetranslatedatthespotexchangerateonthebalancesheetdate.Theexchangedifferencearisingfromthedifferencebetweenthespotexchangerateonthebalancesheetdateandthespotexchangerateatthetimeofinitialrecognitionorpriortothebalancesheetdateshallberecordedintheprofitsandlossesinthecurrentperiod,excludingthefollowingsituations:①theexchangedifferencearisingfromforeigncurrencyloansrelatedtoacquisitionoffixedassetsshallbetreatedattheprincipleofcapitalizationofborrowingcosts;②theexchangedifferencearisingfromthehedginginstrumentsusedforeffectivehedgingofnetoverseasoperationinvestmentsshallberecordedintoothercomprehensiveincomes,andshallberecognizedintocurrentgainsandlosseswhenthenetinvestmentsaredisposed;and③theexchangedifferencearisingfromchangeinthebookbalanceofforeigncurrencymonetaryitemsavailableforsaleexcepttheamortizedcostsshallberecordedintoothercomprehensivegainsandlosses.Whenitinvolvesoverseasbusinessinpreparingtheconsolidatedfinancialstatement,forthetranslationdifferenceofforeigncurrencymonetaryitemsofnetinvestmentinoverseasbusinessarisingfromthechangeinexchangerate,itshallberecordedintotheothercomprehensiveincome;andberecordedintodisposalgainsandlossesatcurrentperiodwhendisposingoverseasbusiness.Aforeigncurrencynon-monetaryitemmeasuredatthehistoricalcostsshallstillbetranslated
atthespotexchangerateonthetransactiondate.Wheretheforeignnon-monetaryitemsmeasuredatthefairvalueshallbeconvertedintoamountinitsbookkeepingbasecurrencyatspotexchangerate,theexchangegainsandlossesarisingthereofshallbetreatedaschangeinfairvalue,andrecordedintothecurrentperiodgainsandlossesorasothercomprehensiveincomes.(3)TranslationofforeigncurrencyfinancialstatementsWhenitinvolvesoverseasbusinessinpreparingtheconsolidatedfinancialstatement,forthetranslationdifferenceofforeigncurrencymonetaryitemsofnetinvestmentinoverseasbusinessarisingfromthechangeinexchangerate,itshallberecordedintotheitemof“differenceofforeigncurrencyfinancialstatementtranslation”undertheowners’equity;andberecordedintodisposalgainsandlossesatcurrentperiodwhendisposingoverseasbusiness.TheforeigncurrencyfinancialstatementofoverseasbusinessshouldbetranslatedintoRMBfinancialstatementbythefollowingmethods:Theassetandliabilityitemsinthebalancesheetsshallbetranslatedataspotexchangerateonthebalancesheetdate.Amongtheowner’sequityitems,exceptfortheitemsas“undistributedprofits”,otheritemsshallbetranslatedatthespotexchangerateatthetimewhentheyareincurred.Theincomeandexpenseitemsintheprofitstatementsshallbetranslatedatthespotexchangerateofthetransactiondate.Theundistributedprofitsatyear-beginistheundistributedprofitsattheendoflastyearafterthetranslation;undistributedprofitsatyear-endshallbelistedasvariousdistributionitemsafterthetranslation;afterthetranslation,thebalancebetweenassetsandthesumofliabilitiesandshareholders’equitiesshallberecordedintoothercomprehensivegainsandlossesasdifferenceofforeigncurrencytranslation.Whereanenterprisedisposesofanoverseasbusinesswithoutthecontrolright,itshallshiftthedifferences,whichispresentedundertheitemsoftheshareholders’equitiesinthebalancesheetandwhicharisesfromthetranslationofforeigncurrencyfinancialstatementsrelatingtothisoverseasbusiness,intothedisposalprofitsandlossesofthecurrentperiodbyallorproportionofthedisposedoverseasbusiness.Foreigncashflowshallbetranslatedatthespotexchangerateofthecurrentperiodofthedateofcashflowincurred.Theinfluenceofexchangerateonthecashflowshallbeadjustmentitemandindividuallylistedinthecashflowstatement.
Andtheopeningbalanceandtheactualbalanceoflastyearshallbelistedattheamountsaftertranslationofforeigncurrencyfinancialstatementinlastyear.WherethecontroloftheGroupoveranoverseasoperationceasesduetodisposalofallorsomeoftheGroup’sowner’sequityintheoverseasoperationorotherreasons,theforeign-currencystatementtranslationdifferencebelongingtotheparentcompany’sowner’sequityinrelationtotheoverseasoperationwhichisstatedundertheshareholders’equityinthebalancesheetshallbeallrestatedasgainsandlossesofthedisposalperiod.WheretheGroup’sequityinanoverseasoperationdecreasesduetodisposalofsomeequityinvestmentorotherreasonsbuttheGroupstillhascontrolovertheoverseasoperation,theforeign-currencystatementtranslationdifferenceinrelationtothedisposedpartoftheoverseasoperationshallberecordedintominorityinterestsinsteadofcurrentgainsandlosses.Ifwhat’sdisposedissomeequityinanoverseasassociatedenterpriseorjointventure,theforeign-currencystatementtranslationdifferencerelatedtotheoverseasoperationshallberecordedintothegainsandlossesofthecurrentperiodofthedisposalaccordingtothedisposalratio.9.FinancialInstrumentsTheGrouprecognizesafinancialassetorliabilitywhenitbecomesapartyoftherelevantfinancialinstrumentcontract.Financialassetsandliabilitiesaremeasuredatfairvalueininitialrecognition.Asforthefinancialassetsandliabilitiesmeasuredatfairvalueofwhichchangesarerecordedintocurrentgainsandlosses,therelevantdealingexpensesaredirectlyrecordedintogainsandlosses;andthedealingexpensesonotherkindsoffinancialassetsandliabilitiesareincludedintheamountsinitiallyrecognized.(1)DeterminationofthefairvalueofmainfinancialassetsandfinancialliabilitiesFairvaluereferstothepricethatamarketparticipantshallreceiveforsellinganassetorshallpayfortransferringaliabilityinanorderlytransactiononthemeasurementdate.Asforthefinancialassetsorfinancialliabilitiesforwhichthereisanactivemarket,thequotedpricesintheactivemarketshallbeusedtodeterminethefairvaluesthereof.Thequotedpricesintheactivemarketreferstothepricesavailablefromstockexchange,broker’sagencies,guilds,pricingorganizationandetc.,whichrepresenttheactualtradingpriceunderequaltransaction.Wherethereisnoactivemarketforafinancialinstrument,theenterprise
concernedshalladoptvalueappraisaltechniques,includingthepricesadoptedbytheparties,whoarefamiliarwiththecondition,inthelatestmarkettransactionupontheirownfreewill,thecurrentfairvalueobtainedbyreferringtootherfinancialinstrumentsofthesameessentialnature,thecashflowcapitalizationmethodandtheoptionpricingmodel,etc.,todetermineitsfairvalue.(2)Classification,recognitionandmeasurementoffinancialassetsThepurchaseandsaleoffinancialassetsunderthenormalwaysshallberecognizedandstoppedtoberecognizedrespectivelyatthepriceoftransactiondate.Financialassetsshallbeclassifiedintothefollowingfourcategorieswhentheyareinitiallyrecognized:(a)thefinancialassetswhicharemeasuredattheirfairvaluesandthevariationofwhichisrecordedintotheprofitsandlossesofthecurrentperiod,(b)theinvestmentswhichwillbeheldtotheirmaturity;(c)loansandtheaccountreceivables;and(d)financialassetsavailableforsale.①ThefinancialassetswhicharemeasuredattheirfairvaluesandthevariationofwhichisrecordedintotheprofitsandlossesofthecurrentperiodIncludingtransactionalfinancialassetsandthefinancialassetswhicharedesignatedtobemeasuredattheirfairvaluewhentheyareinitiallyrecognizedandofwhichthevariationisrecordedintotheprofitsandlossesofthecurrentperiod;Thefinancialassetsmeetinganyofthefollowingrequirementsshallbeclassifiedastransactionalfinancialassets：
A.Thepurposetoacquirethesaidfinancialassetsismainlyforsellingtheminthenearfuture;B.Formingapartoftheidentifiablecombinationoffinancialinstrumentswhicharemanagedinacentralizedwayandforwhichthereareobjectiveevidencesprovingthattheenterprisemaymanagethecombinationbywayofshort-termprofitmakinginthenearfuture;C.Beingaderivativeinstrument,excludingthedesignatedderivativeinstrumentswhichareeffectivehedginginstruments,orderivativeinstrumentstofinancialguaranteecontracts,andthederivativeinstrumentswhichareconnectedwiththeequityinstrumentinvestmentsforwhichthereisnoquotedpriceintheactivemarket,whosefairvaluecannotbereliablymeasured,andwhichshallbesettledbydeliveringthesaidequityinstruments.
Thefinancialassetsmeetinganyofthefollowingrequirementsshallbedesignatedasfinancialassetswhicharemeasuredattheirfairvaluesandthevariationofwhichisrecordedintotheprofitsandlossesofthecurrentperiodforinitialrecognition:A.thedesignationcaneliminateorsignificantlyreducethedifferenceofrelevantgainsandlossesbetweenrecognitionandmeasurementcausingfromdifferentbasesformeasurementoffinancialassets;B.Theofficialwrittendocumentsforriskmanagementandinvestmentstrategiesoftheenterprisehaveclearlystatedthatitshall,manage,evaluateandreporttoimportantmanagementpersonnelbasedonthefairvalue,aboutthefinancialassetsgrouporthegroupoffinancialassets&liabilitieswhichthefinancialassetsarebelongto.Forthefinancialassetswhicharemeasuredattheirfairvaluesandthevariationofwhichisrecordedintotheprofitsandlossesofthecurrentperiodshallcontinuetobemeasuredbyfairvalue,gainsandlossesofchangeinfairvalue,dividendsandinterestrelatedwiththesefinancialassetsshouldberecordedintogainsandlossesofcurrentperiod.②Held-to-maturityinvestmentTheterm“held-to-maturityinvestment”referstoanon-derivativefinancialassetwithafixeddateofmaturity,afixedordeterminableamountofrepopriceandwhichtheenterpriseholdsforadefinitepurposeortheenterpriseisabletoholduntilitsmaturity.Fortheheld-to-maturityinvestmentadoptingactualinterestratemethod,whichismeasuredatthepost-amortizationcosts,theprofitsandlossesthatarisewhensuchfinancialassetsorfinancialliabilitiesareterminatedfromrecognition,orareimpairedoramortized,shallberecordedintotheprofitsandlossesofthecurrentperiod.Theactualinterestratemethodreferstothemethodbywhichthepost-amortizationcostsandtheinterestincomesofdifferentinstalmentsorinterestexpensesarecalculatedinlightoftheactualinterestratesofthefinancialassetsorfinancialliabilities(includingasetoffinancialassetsorfinancialliabilities).Theactualinterestratereferstotheinterestrateadoptedtocashthefuturecashflowofafinancialassetorfinancialliabilitywithinthepredictedtermofexistenceorwithinashorterapplicabletermintothecurrentcarryingamountofthefinancialassetorfinancialliability.
Whentheactualinterestrateisdetermined,thefuturecashflowshallbepredictedonthebasisoftakingintoaccountallthecontractualprovisionsconcerningthefinancialassetorfinancialliability(thefuturecreditlossesshallnotbetakenintoaccount).andalsothevariousfeecharges,tradingexpenses,premiumsorreducedvalues,etc.,whicharepaidorcollectedbythepartiestoafinancialassetorfinancialliabilitycontractandwhichformapartoftheactualinterestrate.③LoansandtheaccountsreceivablesLoansandtheaccountsreceivablesrefertonon-derivativefinancialassets,whichthereisnoquotationintheactivemarket,withfixedrecoverycostorrecognizable.FinancialassetsthataredefinedasloansandtheaccountsreceivablesbytheGroupincludingnotesreceivables,accountsreceivables,interestreceivable,dividendsreceivableandotherreceivablesetc..Loansandtheaccountsreceivablesaremadefollow-upmeasurementonthebasisofpost-amortizationcostsemployingtheeffectiveinterestmethod.Gainsorlossarisingfromtheterminationrecognition,impairmentoccursoramortizationshallberecordedintotheprofitsandlossesofthecurrentperiod.④AssetsavailableforsalesAssetsavailableforsalesincludingnon-derivativefinancialassetthathasbeenassignedasassetsavailableforsalesontheinitialrecognitionandfinancialassetsexcludedthosemeasuredatfairvalueandofwhichthevariationintoprofitsandlossesofthecurrentperiod,theyaresomefinancialassets,loansandaccountsreceivables,held-to-maturityinvestment.Thecostattheperiod-endoftheavailable-for-saleliabilitiesinstrumentsshouldbeconfirmedaccordingtoitsamortizedcostmethod,thatistheinitiallyrecognizedamountwhichdeducttheprincipalthathadbeenrepaid,toplusorminustheaccumulativeamortizationamountformedbytheamortizationbetweenthedifferenceoftheinitiallyrecognizedamountandtheamountontheduedatethatadoptedtheactualinterestratemethod,andatthesametimededucttheamountaftertheimpairmentlosshappened.Thecostattheperiod-endoftheavailable-for-saleliabilitiesinstrumentsisitsinitialcost.
Financialassetsavailable-for-tradearesubsequentlymeasuredatfairvalue,andgainsorlossesarisingfromchangesinthefairvaluearerecognizedasothercomprehensiveincome，andbecarriedforwardwhenthesaidfinancialassetsstoppedrecognition,thenitshallberecordedintotheprofitsandlossesofthecurrentperiod.But,theequityinstrumentinvestmentwhichneitherhavequotationintheactivemarketnoritsfairvaluecouldnotbereliablemeasured,aswellasthederivativefinancialassetsthatconcernwiththeequityinstrumentsandshouldbesettledthroughhandingovertoitsequityinstruments,shouldtakethefollow-upmeasurementaccordingtothecost.Interestreceiveduringtheholdingofassetsavailableforsalesandcashdividendswithdistributionannouncementbyinvestedcompanies,itshallberecordedintotheprofitsandlossesofthecurrentperiod.(3)ImpairmentoffinancialassetsTheGroupassessesatthebalancesheetdatethecarryingamountofeveryfinancialassetexceptforthefinancialassetsthatmeasuredbythefairvalue.Ifthereisobjectiveevidenceindicatingafinancialassetmaybeimpaired,aprovisionisprovidedfortheimpairment.TheGroupcarriesoutaseparateimpairmenttestforeveryfinancialassetwhichisindividuallysignificant.Asforafinancialassetwhichisindividuallyinsignificant,animpairmenttestiscarriedoutseparatelyorinthefinancialassetgroupwithsimilarcreditrisk.Wherethefinancialasset(individuallysignificantorinsignificant)isfoundnotimpairedaftertheseparateimpairmenttest,itisincludedinthefinancialassetgroupwithsimilarcreditriskandtestedagainonthegroupbasis.Wheretheimpairmentlossisrecognizedforanindividualfinancialasset,itisnotincludedinthefinancialassetgroupwithsimilarcreditriskforanimpairmenttest.①Impairmentonheld-tomaturityinvestment,loansandreceivablesThefinancialassetsmeasuredbycostoramortizedcostwritedowntheircarryingvaluebytheestimatedpresentvalueoffuturecashflow.Thedifferenceisrecordedasimpairmentloss.Ifthereisobjectiveevidencetoindicatetherecoveryofvalueoffinancialassetsafterimpairment,anditisrelatedwithsubsequenteventafterrecognitionofloss,theimpairmentlossrecordedoriginallycanbereversed.Thecarryingvalueoffinancialassetsafter
impairmentlossreversedshallnotexceedtheamortizedcostofthefinancialassetswithoutprovisionsofimpairmentlossonthereservingdate.②Impairmentofavailable-for-salefinancialassetsWhenitjudgedthatthedecreaseoffairvalueoftheavailable-for-saleequityinstrumentinvestmentisseriousandnottemporarilyaftercomprehensiveconsideringrelevantfactors,itreflectedthattheavailable-for-saleequityinstrumentinvestmentoccurredimpairment.Ofwhich,the“seriousdecline”referstotheaccumulativedeclinerangeofthefairvalueover20%;whilethe“non-temporarydecline”referstotheconsecutivedeclinetimeofthefairvalueover12months.Whereanavailable-for-salefinancialassetisimpaired,theaccumulativelossesarisingfromthedecreaseofthefairvalueofthecapitalreservewhichisdirectlyincludedaretransferredoutandrecordedintheprofitsandlossesforthecurrentperiod.Theaccumulativelossestransferredoutarethebalanceobtainedfromtheinitiallyobtainedcostofthesaidfinancialassetafterdeductingtheprincipalsastakenback,theamortizedamount,thecurrentfairvalueandtheimpairmentlossoriginallyrecordedintheprofitsandlosses.Wheretheimpairmentlosshasbeenrecognizedforanavailable-for-salefinancialasset,if,withintheaccountingperiodsthereafter,thereisanyobjectiveevidenceprovingthatthevalueofthesaidfinancialassethasbeenrestoredandtherestorationisobjectivelyrelatedtotheeventsthatoccuraftertheimpairmentlosswasrecognized,theoriginallyrecognizedimpairmentlossisreversed.Theimpairmentlossesontheavailable-for-saleequityinstrumentinvestmentsarereversedandrecognizedasothercomprehensiveincomes,andtheimpairmentlossesontheavailable-for-saleliabilityinstrumentsarereversedandrecordedintheprofitsandlossesforthecurrentperiod.Theimpairmentlossincurredtoanequityinstrumentinvestmentforwhichthereisnoquotedpriceintheactivemarketandwhosefairvaluecannotbereliablymeasured,orincurredtoaderivativefinancialassetwhichisconnectedwiththesaidequityinstrumentinvestmentandwhichmustbesettledbydeliveringthesaidequityinvestment,isnotreversed.(4)Recognitionandmeasurementoffinancialassettransfers
Whereafinancialassetsatisfiesanyofthefollowingrequirements,therecognitionofitisterminated:
①Thecontractualrightsforcollectingthecashflowofthesaidfinancialassetareterminated;②Thesaidfinancialassethasbeentransferredandnearlyalloftherisksandrewardsrelatedtotheownershipofthefinancialassettothetransferee;or③Thesaidfinancialassethasbeentransferred.AndtheGrouphasceaseditscontrolonthesaidfinancialassetthoughitneithertransfersnorretainsnearlyalloftherisksandrewardsrelatedtotheownershipofthefinancialasset.WheretheGroupneithertransfersnorretainsnearlyalloftherisksandrewardsrelatedtotheownershipofafinancialasset,anditdoesnotceaseitscontrolonthesaidfinancialasset,itrecognizestherelevantfinancialassetandliabilityaccordinglyaccordingtotheextentofitscontinuousinvolvementinthetransferredfinancialasset.Theterm"continuousinvolvementinthetransferredfinancialasset"referstotherisklevelthattheenterprisefacesresultingfromthechangeofthevalueofthefinancialasset.Ifthetransferofanentirefinancialassetsatisfiestheconditionsforstoppingrecognition,thedifferencebetweentheamountsofthefollowing2itemsisrecordedintheprofitsandlossesofthecurrentperiod:(1)Thebookvalueofthetransferredfinancialasset;and(2)Thesumofconsiderationreceivedfromthetransfer,andtheaccumulativeamountofthechangesofthefairvalueoriginallyrecordedinothercomprehensiveincomes.Ifthetransferofpartialfinancialassetsatisfiestheconditionstostoptherecognition,thebookvalueofthetransferredfinancialassetisapportionedbetweentheportionwhoserecognitionhasbeenstoppedandtheportionwhoserecognitionhasnotbeenstoppedaccordingtotheirrespectiverelativefairvalue,andthedifferencebetweentheamountsofthefollowing2itemsisincludedintotheprofitsandlossesofthecurrentperiod:(1)Thesummationoftheconsiderationreceivedfromthetransferandtheportionoftheaccumulativeamountofchangesinthefairvalueoriginallyrecordedinothercomprehensiveincomeswhichcorrespondstotheportionwhoserecognitionhasbeenstopped;and(2)Theamortizedcarryingamountsoftheaforesaidamounts.Inrespectoftheassetsusingrecoursetosellorusingendorsementtotransfer,theGroupneedstodeterminewhetheralmostalloftherisksandrewardsofthefinancialasset
ownershiparetransferred.Ifalmostalloftherisksandrewardsofthefinancialassetownershiphadbeentransferredtothetransferee,derecognizethefinancialassets.Foralmostalloftherisksandrewardsofthefinancialassetownershipretained,donotendtorecognizethefinancialassets.Forwhichneithertransferorretainalmostalloftherisksandrewardsofthefinancialassetownership,continuouslyjudgewhethertheCompanyretainthecontroloftheassets,andconductaccountingtreatmentaccordingtotheprincipleofmentionedinthepreviousparagraphs.(5)ClassificationandmeasurementoffinancialliabilitiesIntheinitialrecognition,financialliabilitiesaredividedintothefinancialliabilitiesmeasuredatfairvaluesandwhosechangesarerecordedincurrentgainsandlossesandotherfinancialliabilities.Financialliabilitiesareinitiallyrecognizedattheirfairvalues.Asforafinancialliabilitymeasuredatfairvalueandwhosechangesarerecordedincurrentgainsandlosses,therelevanttradingexpenseisdirectlyrecordedintheprofitsandlossesforthecurrentperiod.Asforotherfinancialliabilities,therelevanttradingexpensesarerecordedintheinitiallyrecognizedamounts.①FinancialliabilitiesmeasuredatfairvaluesandwhosechangesarerecordedincurrentgainsandlossesSuchfinancialliabilitiesaredividedintotransactionalfinancialliabilitiesandfinancialliabilitiesdesignatedtobemeasuredatfairvaluesandwhosechangesarerecordedincurrentgainsandlossesintheinitialrecognitionunderthesameconditionswheresuchfinancialassetsaredividedintotransactionalfinancialassetsandfinancialassetsdesignatedtobemeasuredatfairvaluesandwhosechangesarerecordedincurrentgainsandlossesintheinitialrecognition.Financialliabilitiesmeasuredatfairvaluesandwhosechangesarerecordedincurrentgainsandlossesaresubsequentlymeasuredattheirfairvalues.Gainsorlossesarisingfromthefairvaluechanges,aswellasthedividendandinterestexpensesinrelationtothesaidfinancialliabilities,arerecordedintheprofitsandlossesforthecurrentperiod.②Otherfinancialliabilities
Asforaderivativefinancialliabilityconnectedtoanequityinstrumentforwhichthereisnotquotedpriceinanactivemarketandwhosefairvaluecannotbereliablymeasuredandwhichmustbesettledbydeliveringtheequityinstrument,itissubsequentlymeasuredonthebasisofcosts.Otherfinancialliabilitiesaresubsequentlymeasuredaccordingtotheamortizedcostusingtheactualinterestratemethod.Gainsorlossesarisingfromde-recognitionoramortizationofthesaidfinancialliabilitiesisrecordedintheprofitsandlossesforthecurrentperiod.③FinancialguaranteecontractandloancommitmentForthefinancialguaranteecontractswhicharenotdesignatedasafinancialliabilitymeasuredatitsfairvalueandthevariationthereofisrecordedintotheprofitsandlossesofthecurrentperiod,ortheloancommitmentwhichisnotdesignatedasafinancialliabilitymeasuredatitsfairvalueandthevariationthereofisrecordedintothegainsandlossesthatwillbeloanedlowerthanthemarketinterestrate,whichshallbeinitiallyrecognizedbyfairvalue,andthesubsequentmeasurementshallbemadeaftertheyareinitiallyrecognizedaccordingtothehigheroneofthefollowing:a.theamountasdeterminedaccordingtotheAccountingStandardsforEnterprisesNo.13–Contingencies;b.thesurplusafteraccumulativeamortizationasdeterminedaccordingtotheprinciplesoftheAccountingStandardsforEnterprisesNo.14-Revenuesissubtractedfromtheinitiallyrecognizedamount.(6)De-recognitionoffinancialliabilitiesOnlywhentheprevailingobligationsofafinancialliabilityarerelievedinallorinpartmaytherecognitionofthefinancialliabilitybeterminatedinallorpartly.WheretheGroup(debtor)entersintoanagreementwithacreditorsoastosubstitutetheexistingfinancialliabilitiesbywayofanynewfinancialliability,andifthecontractualstipulationsregardingthenewfinancialliabilityissubstantiallydifferentfromthatregardingtheexistingfinancialliability,itterminatestherecognitionoftheexistingfinancialliability,andatthesametimerecognizesthenewfinancialliability.Wheretherecognitionofafinancialliabilityistotallyorpartiallyterminated,theenterpriseconcernedshallincludeintotheprofitsandlossesofthecurrentperiodforthegapbetweenthebookvaluewhichhasbeenterminatedfromrecognitionandtheconsiderationsithaspaid
(includingthenon-cashassetsithastransferredoutandthenewfinancialliabilitiesithasassumed)(7)DerivativesandembeddedderivativesDerivativefinancialinstrumentsincludederivativesareinitiallymeasuredatfairvalueatthedatewhenthederivativecontractsareenteredintoandaresubstantiallyre-measuredatfairvalue.Exceptthatderivativeinstrumentsdesignatedasarbitragetoolwithhighlyeffectivehedgingwhosegainsorlossesformedbychangesinfairvaluerecognizedtheperiodsforbeingrecordedintoprofitorlossaccordingtothenatureofhedgingrelationsandrequirementsofhedgingaccounting,thefairvaluechangesofotherderivativeinstrumentsarerecognizedintothecurrentprofitorloss.Anembeddedderivativeisseparatedfromthehybridinstrument,wherethehybridinstrumentisnotdesignatedasafinancialassetorfinancialliabilityatfairvaluethoughprofitorloss,andthetreatedasastandalonederivativeif(a)theeconomiccharacteristicsandrisksoftheembeddedderivativearenotcloselyrelatedtotheeconomiccharacteristicsandrisksofthehostcontract;and(b)aseparateinstrumentwiththesametermsastheembeddedderivativewouldmeetthedefinitionofaderivative.IftheCompanyisunabletomeasuretheembeddedderivativeseparatelyeitheratacquisitionoratasubsequentbalancesheetdate,itdesignatestheentirehybridinstrumentasafinancialassetorfinancialliabilityatfairvaluethroughprofitorloss.(8)OffsettingfinancialassetsandfinancialliabilitiesWhentheGrouphasalegalrightthatiscurrentlyenforceabletosetofftherecognizedfinancialassetsandfinancialliabilities,andintendseithertosettleonanetbasis,ortorealizethefinancialassetandsettlethefinancialliabilitysimultaneously,afinancialassetandafinancialliabilityshallbeoffsetandthenetamountispresentedinthebalancesheet.Exceptfortheabovecircumstances,financialassetsandfinancialliabilitiesshallbepresentedseparatelyinthebalancesheetandshallnotbeoffset.
(9)Equityinstruments
AnequityinstrumentisanycontractthatevidencesaresidualinterestintheassetsoftheCompanyafterdeductingallofitsliabilities.TheGroupissues(includingrefinancing),
re-purchases,sellsorwritten-offstheequityinstrumentasthedisposingofthechangesoftheequity.Thetransactionexpensesrelatedtotheequitytransactionwouldbedeductedfromtheequity.Alltypesofdistribution(excludingstockdividends)madebytheGrouptoholdersofequityinstrumentsaredeductedfromshareholders’equity.TheGroupdoesnotrecognizeanychangesinthefairvalueofequityinstruments.10.ReceivablesReceivablesincludeaccountreceivablesandotheraccountsreceivables.(1)Recognitionofprovisionforbaddebts:
TheGroupshalltestthecarryingamountofreceivablesonthebalancesheetdate.Wherethereisanyobjectiveevidenceprovingthatsuchreceivableshavebeenimpaired,animpairmentprovisionshallbemade.①Debtorhasseriousfinancialdifficult;②Debtorgoesagainstthecontractclause(forinstance,breachoffaithoroverduepayinginterestsorprincipal);③Debtorshaveagreatprobabilityofbankruptcyorotherfinancialreorganization;④Otherobjectiveevidenceprovingsuchaccountsreceivablehasbeenimpaired;(2)Withdrawmethodofprovisionforbaddebts①TherecognitioncriteriaandmethodofindividualprovisionforbaddebtsofreceivablesthatareindividuallysignificantTheGrouprecognizedthereceivableswithamountaboveRMB20millionandotherreceivablesaboveRMB10millionasreceivableswithsignificantsingleamountsandwithdrawntheprovisionforbaddebts.TheGroupmadeanindependentimpairmenttestonreceivableswithsignificantsingleamounts;thefinancialassetswithoutimpairmentbyindependentimpairmenttestshouldbe
includedinfinancialassetsportfoliowithsimilarcreditrisktotaketheimpairmenttest.Receivableswasrecognizedwithimpairmentshouldnolongerbeincludedinreceivablesportfoliowithsimilarcreditrisktotaketheimpairmenttest.②TherecognitionandmethodofprovisionforbaddebtsofreceivablesbycreditriskportfolioA.RecognitionofcreditriskgroupReceivablesthatnotindividuallysignificantandindividuallysignificantbutwithoutimpairmentbyindependentimpairmenttest,aregroupedonthebasisofsimilarityandrelevanceofcreditrisk.Thiscreditriskusuallyreflectsthedebtor’sabilitytorepayallthedueaccountsinaccordancewithcontractforsuchassets,whichalsoarerelatedwiththemeasurementonfuturecashflowoftheexaminedassets.Recognitionbasicofdifferentgroups:
| Item | Basic |
| Group1:Aginggroup | Dividethegroupsaccordingtothecreditriskscharacteristicsoftheaccountsreceivable |
| Group2:InternalrelatedpartygroupsinthescopeofconsolidationoftheCompany | DividethegroupsaccordingtothecreditriskscharacteristicsofwhetherthecreditoristheinternalrelatedpartyinthescopeofconsolidationoftheCompany |
B.WithdrawalmethodofprovisionforbaddebtsrecognizedbycreditriskgroupFortheimpairmenttestimplementedbygroups,theamountofprovisionforbaddebtswasappraisedandrecognizedinaccordancewiththestructureofaccountsreceivablegroupandsimilarcharacteristicsofcreditrisk(thedebtor’sabilitytopayofftheloansinaccordancewiththeprovisionsofcontract),experienceoflosses,currenteconomicstatusandthepredictedlossesintheaccountsreceivablegroup.Methodsofmakingprovisionsforbaddebtindifferentgroups:
| Item | Withdrawalmethod |
| Group1:Aginggroup | Aginganalysismethod |
| Group2:Internalrelatedpartygroupsinthescopeofconsolidationofthe | Tomakeanindependentimpairmenttestandiftherewasnoimpairment,shouldnotwithdrawthebaddebtsprovision. |
| Item | Withdrawalmethod |
| Company |
Inthegroup,exceptsubsidiaryEconTechnology,adoptingaginganalysismethodtowithdrawbaddebtprovision:
| Age | Withdrawalproportionforaccountsreceivable(%) | Withdrawalproportionforotheraccountsreceivable(%) |
| Within1year(including1year,similarlyhereinafter) | 2 | 2 |
| 1-2years | 5 | 5 |
| 2-3years | 20 | 20 |
| 3-4years | 50 | 50 |
| 4-5years | 50 | 50 |
| Over5years | 100 | 100 |
Inthegroup,subsidiaryEconTechnologyadoptingaginganalysismethodtowithdrawbaddebtprovision:
| Age | Withdrawalproportionforaccountsreceivable(%) | Withdrawalproportionforotheraccountsreceivable(%) |
| Within1year(including1year,similarlyhereinafter) | 5 | 5 |
| 1-2years | 10 | 10 |
| 2-3years | 30 | 30 |
| 3-4years | 50 | 50 |
| 4-5years | 80 | 80 |
| Over5years | 100 | 100 |
③ReceivableswithinsignificantamountbutbeingindividuallywithdrawntheprovisionforbaddebtsTheGroupmadeindependentimpairmenttestonreceivableswithinsignificantamountbutwiththefollowingcharacteristics,ifanyobjectiveevidenceshowsthattheaccounts
receivablehasbeenimpaired,impairmentlossshallberecognizedonthebasisofthegapbetweenthecurrentvaluesofthefuturecashflowlowerthanitsbookvaluesoastowithdrawprovisionforbaddebts:
A.Receivableshavedisputewiththeotherpartiesorinvolvinglawsuitandarbitration;B.Receivableshaveobviousindicationshowingthatthedebtorsarelikelytofailtoperformthedutyofrepayment,etc.C.Thereisotherevidenceofimpairmentandtheimpairmentamountcanestimatedreliably.(3)ReversalofprovisionforbaddebtsIfthereisanyobjectiveevidenceprovingthatthevalueofthesaidreceivableshasbeenrestored,anditisobjectivelyrelatedtotheeventsoccurredaftersuchlossisrecognized,theimpairment-relatedlossesasoriginallyrecognizedshallbereversedandberecordedintotheprofitsandlossesofthecurrentperiod.However,thereversedcarryingamountshallnotbeanymorethanthepost-amortizationcostsofthesaidaccountsreceivableonthedayofreverseundertheassumptionthatnoprovisionismadefortheimpairment.iftheCompanytransfersaccountsreceivabletofinancialinstitutionsnotbyrightofrecourse,thebalancebetweentransactionamountsdeductingthecarryingvalueofwritten-offaccountsreceivableandrelevanttaxesshallberecordedintothecurrentprofitandloss.11.Inventory
(1)Classification
TheGroup’sinventoriesmainlyincluderawmaterials,goodsinprocess;merchandiseonhand,goodsdelivered,circulatingmaterials,andpropertyinventories(developmentproduct,anddevelopmentcost),andfinishedbutunsettledassetsofconstructioncontract.①Developmentproductreferstothefinishedandheld-for-saleproperty.②Developmentcostsreferstotheunfinishedpropertywiththedevelopmentpurposeforsale.?Thefinishedbutunsettledassetsofconstructioncontractreferstotheexcessamountofthesumofaccumulativelyincurredcostsandrecognizedgrossmargin(loss)ofcontractinprocessoverthesettledamount.
(2)Pricingmethodforoutgoinginventories?PricingmethodofcommoninventoriesTheinventoriesshallbemeasuredinlightoftheircostwhenobtained.Thecostofinventoryconsistsofpurchasecosts,processingcostsandothercosts.Inventoryisaccountedbyweightaveragemethoduponreceivingandgiving.Formerchandiseonhandshallbeaccountedbyplannedcost,ifthedifferencebetweenplannedcostofandactualcostofrawmaterialsisaccountedthroughthecostvarianceitem,andtheplannedcostisadjustedtotheactualcostaccordingtothecostdifferencewhichthecarryoverandgiven-outinventoryshouldshoulderintheperiod.?PricingmethodofpropertyinventoriesThepropertyinventoriesareinitiallymeasuredatthecosts,andinventoriesmainlyincludematerialsinstock,developmentproductinprocess(developmentcosts),finisheddevelopmentproduct,anddevelopmentproductintendedtosellbutrenttemporarily,andetc.Thecostsofthedevelopmentproductincludethelandpremium,expendituresforsupportinginfrastructures,expendituresforconstructionandinstallationprojects,theborrowingcostsbeforethecompletionofthedevelopedprojectandotherexpensesoccurredduringthedevelopmentprocess.Whentheinventoriesaredelivered,itsactualcostsshallberecognizedbyweightedaveragemethod.?PricingmethodofconstructioncontractTheconstructioncontractsshallbemeasuredatactualcost,includingalldirectandindirectcostsrelatedtotheexecutionofthecontractfromthetimesigningthecontracttocompletingthecontract.Theexpensessuchastravelexpensesandbiddingfeesincurredforthepurposeofsigningthecontract,whichcanbeseparatelyandreliablymeasuredandthecontractislikelytobeconcluded,areincludedinthecontractcostwhenthecontractisobtained;iftheaboveconditionsarenotmet,theyareincludedinthecurrentprofitandloss.Theaccumulatedcostsincurredinthecontractinprogress,theaccumulatedrecognizedgrossprofit(loss)andthesettledpricearestatedinthebalancesheetasnetoffset.Thepartofthesumoftheaccumulatedcostsincurredinthecontractinprogressandtheaccumulatedrecognizedgrossprofit(loss)thatexceedsthesettledpriceisstatedastheinventory;thepartofthesettlementcostsofthecontractinprogressthatexceedsthesumoftheaccumulatedcostsincurredandtheaccumulatedrecognizedgrossprofit(loss)arestatedasaccountcollectedinadvance.
(3)RecognitionbasisofnetrealizablevalueandwithdrawalmethodofdepreciationreservesforinventoriesThenetrealizablevaluerefers,intheordinarycourseofbusiness,totheaccountafterdeductingtheestimatedcostofcompletion,estimatedsaleexpenseandrelevanttaxesfromtheestimatedsalepriceofinventories.Thenetrealizablevalueofinventoriesshallbefixedonthebasisofvalidevidenceaswellasunderconsiderationofpurposeofinventoriesandtheeffectofeventsafterbalance-sheet-date.Onthebalancesheetdate,theinventoriesshallbemeasuredaccordingtothecostorthenetrealizablevalue,whicheverislower.Ifthenetrealizablevalueislowerthanthecost,itshallwithdrawthedepreciationreservesforinventories,whichwaswithdrawninaccordancewiththebalancethatthecostofindividualinventoryitemexceedingthenetrealizablevalue.Theinventorieswithvariousnumbersandlowunitpriceshallbemadeprovisionsfordepreciationreservesofinventoriesaccordingtothecategoryofinventories.Forinventoriesthatareproducedandsoldinthesameregionwithsameorsimilarenduseorpurposes,andhardtobemeasuredseparatelyfromotheritems,itshallbemademergerprovisionsforfallingpriceofinventories.Afterwithdrawingthedepreciationreservesforinventories,ifthefactors,whichcauseanywrite-downoftheinventories,havedisappeared,causingthenetrealizablevalueofinventoriesishigherthanitscarryingamount;theamountofwrite-downshallbereversedfromtheoriginalamountofdepreciationreserveforinventories.Thereversedamountshallbeincludedintheprofitsandlossesofthecurrentperiod.(4)Theperpetualinventorysystemismaintainedforstocksystem.(5)Amortizationmethodofthelow-valueconsumptiongoodsandpackingarticlesThelow-valueconsumptiongoodsshouldbeamortizedbyonetimeamortizationwhenacquiringandthepackingarticlesareamortizedbyonetimeamortizationwhenacquiring.12.AssetsHeldforSaleandDisposalGroupWhenacompanyreliesmainlyonselling(includingtheexchangesofnon-monetaryassetswithcommercialsubstance,similarlyhereinafter)insteadofcontinuingtouseanon-currentassetordisposalgrouptorecoveritsbookvalue,thenthenon-currentassetordisposalgroupisclassifiedasassetsheldforsale.Thespecificstandardsaresimultaneouslymeetingthefollowingconditions:assetsordisposalgroupscanbesoldimmediatelyundercurrent
conditionsbasedonthepracticeofsellingsuchassetsordisposalgroupsinsimilartransactions;theCompanyhasalreadymadearesolutiononthesaleplanandobtainedacertainpurchasecommitment,andthesaleisexpectedtobecompletedwithinoneyear.Adisposalgroupreferstoagroupofassetsthataredisposedoftogetherasawholebysaleorothermeansinatransactionandtheliabilitiesdirectlyrelatedtotheseassetstransferredinthetransaction.WheretheassetgrouporcombinationofassetgroupstowhichadisposalgroupbelongsapportionsthegoodwillacquiredinthebusinesscombinationinaccordancewiththeAccountingStandardsforEnterprisesNo.8-AssetImpairment,thedisposalgroupshallincludethegoodwillallocatedtoit.Iftherearenon-currentassetsordisposalgroupsheldforsaleduringinitialmeasurementoronthebalancesheetdaybasedonremeasurementofthisCompany,ifthebookvalueishigherthanthenetamountbydeductingthesellingexpenseswiththefairvalue,thebookvalueshallbewrittendownandbeequaltothenetamountbydeductingthesellingexpenseswiththefairvalue.Thewrite-downamountshallbeconfirmedasthelossofdepreciationofassetsandshallbeincludedintotheprofitsandlossesofthecurrentperiod.Atthesametime,preparetocalculateandwithdrawtheassetspurchasedandunderagreementstoresell.Forthedisposalgroup,deductthebookvalueofthegoodwillinthedisposalgroupwiththeassetdepreciationlossesconfirmed,thendeductthebookvalueofeachnon-currentassetinthedisposalgroupconformingtothemeasurementregulationsofAccountingStandardsforBusinessEnterprisesNo.42-non-currentAssetsPurchasedandunderAgreementstoResell,DisposalGroupandOperationTermination(hereinafterreferredtoas"theStandardforAssetsPurchasedandunderAgreementstoResell").Ifthenetamountbydeductingthesellingexpenseswiththefairvalueofthedisposalgrouppurchasedandunderagreementstoresellonthesubsequentbalancesheetdate,thepreviouswrite-downamountshallberecoveredandshallbereversedwithintheassetdepreciationlossesamountofthenon-currentconfirmedasperregulationoftheStandardforAssetsPurchasedandunderAgreementstoResellafterbeingclassifiedintothecategorypurchasedandunderagreementstoresell.Thereverseamountshallbeincludedintothecurrentprofitsandlosses,andthebookvalueshallbeaddedaspertheproportionofthebookvalueofeachnon-currentassetinthedisposalgroupapplicabletotheStandardforAssetsPurchasedandunderAgreementstoResellexceptforthegoodwill;Thegoodwillbookvaluedeductedandtheassetdepreciationlossesofthenon-currentassetsapplicabletothemeasurementregulationsoftheStandardfor
AssetsPurchasedandunderAgreementstoResellbeforeitsconfirmationofbeingclassifiedintothecategorypurchasedandunderagreementstoresellshallnotbereversed.Depreciationoramortizationinthenon-currentassetsheldforsaleorthenon-currentassetsinthedisposalgroupshallnotbecalculatedorwithdrawn.Interestsofliabilitiesandotherexpensesinthedisposalgrouppurchasedandunderagreementstoresellshallbeconfirmedcontinuously.Whenanon-currentassetordisposalgroupfailtomeettheclassificationconditionsforthecategoryofheld-for-sale,theCompanywillnolongerclassifyanon-currentassetordisposalgroupasheld-for-saleorremoveoutanon-currentassetfromtheheld-for-saledisposalgroup,anditwillbemeasuredbyoneofthefollowingswhicheverislower:(1)Thebookvaluebeforebeingclassifiedasheldforsalewillbeadjustedaccordingtothedepreciation,amortizationorimpairmentthatwouldhavebeenrecognizedundertheassumptionthatitwasnotclassifiedasheldforsale;(2)Therecoverableamount.13.Long-termEquityInvestmentsThelong-termequityinvestmentsofthispartrefertothelong-termequityinvestmentsthattheGrouphascontrol,jointcontrolorsignificantinfluenceovertheinvestees.Thelong-termequityinvestmentthattheGroupdoesnothavecontrol,jointcontrolorsignificantinfluenceovertheinvestees,shouldberecognizedasavailable-for-salefinancialassetsorbemeasuredbyfairvaluewiththechangesshouldbeincludedinthefinancialassetsaccountingofthecurrentgainsandlosses,andpleasereferthedetailsoftheaccountingpoliciestoNotesIV9“FinancialInstrument”.Jointcontrol,referstothecontroljointlyownedaccordingtotherelevantagreementonanarrangementbytheGroupandtherelevantactivitiesofthearrangementshouldbedecidedonlyaftertheparticipantswhichsharethecontrolrightmakeconsensus.SignificantinfluencereferstothepoweroftheGroupwhichcouldanticipateinthefinanceandtheoperationpolicesoftheinvestees,butcouldnotcontrolorjointlycontroltheformulationofthepolicieswiththeotherparties.(1)RecognitionofinvestmentcostsAsforlong-termequityinvestmentsacquiredbyenterprisemerger,ifthemergerisunderthesamecontrol,theshareofthebookvalueoftheshareholders’equityofthemergedenterprise,onthedateofmerger,isregardedastheinitialcostofthelong-termequityinvestment.The
differencebetweentheinitialcostofthelong-termequityinvestmentandthepaymentincash,non-cashassetstransferredaswellasthebookvalueofthedebtsbornebythemergingpartyshalloffsetagainstthecapitalreserve.Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.Iftheconsiderationofthemergingenterpriseisthatitissuesequitysecurities,itshall,onthedateofmerger,regardtheshareofthebookvalueoftheshareholder'sequityofthemergedenterpriseontheconsolidatedfinancialstatementoftheultimatecontrolpartyastheinitialcostofthelong-termequityinvestment.Thetotalfacevalueofthestocksissuedshallberegardedasthecapitalstock,whilethedifferencebetweentheinitialcostofthelong-termequityinvestmentandtotalfacevalueofthesharesissuedshalloffsetagainstthecapitalreserve.Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.Theequitiesofthecombinedpartywhichrespectivelyacquiredthroughmultipletransactionunderthesamecontrolthatultimatelyformintothecombinationoftheenterprisesunderthesamecontrol,shouldbedisposedaccordingwhetherbelongstopackagedeal;ifbelongstopackagedeal,eachtransactionwouldbeexecutedaccountingtreatmentbytheCompanyasatransactionofacquiringthecontrolright.Ifnotbelongstopackagedeal,itshall,onthedateofmerger,regardtheenjoyedshareofthebookvalueoftheshareholder'sequityofthemergedenterpriseontheconsolidatedfinancialstatementoftheultimatecontrolpartyastheinitialcostofthelong-termequityinvestment,andasforthedifferencebetweentheinitialinvestmentcostofthelong-termequityinvestmentandsumofthebookvalueofthelong-termequityinvestmentbeforethecombinationandthebookvalueoftheconsiderationofthenewpaymentthatfurtherrequiredonthecombinationdate,shouldadjustthecapitalreserve;ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.Theequityinvestmentheldbeforethecombinationdatewhichadoptedtheequitymethodforaccounting,ortheothercomprehensiveincomeconfirmedfortheavailable-for-salefinancialassets,shouldnothaveanyaccountingdisposalforthemoment.Forthelong-terminvestmentrequiredfromthebusinesscombinationunderdifferentcontrol,theinitialinvestmentcostregardedaslong-termequityinvestmentonthepurchasingdateaccordingtothecombinationcost,thecombinationcostsshallbethesumofthefairvaluesoftheassetspaid,theliabilitiesincurredorassumedandtheequitysecuritiesissuedbytheCompany.Theequitiesoftheacquireeswhichrespectivelyacquiredthroughmultipletransactionthatultimatelyformintothecombinationoftheenterprisesunderthedifferent
control,shouldbedisposedaccordingwhetherbelongstopackagedeal;ifbelongstopackagedeal,eachtransactionwouldbeexecutedaccountingtreatmentbytheCompanyasatransactionofacquiringthecontrolright.Ifnotbelongstopackagedeal,thesumofthebookvalueoftheoriginalheldequityinvestmentoftheacquireesandthenewlyaddedinvestmentcostshouldberegardedastheinitialinvestmentcostofthelong-termequityinvestmentthatchangedtobeaccountedbycostmethod.Iftheoriginalheldequityiscalculatedbycostmethod,theotherrelevantcomprehensiveincomewouldnothaveanyaccountingdisposalforthemoment.Iftheoriginalheldequityinvestmentisthefinancialassetsavailableforsale,itsdifferencebetweenthefairvalueandthebookvalueaswellastheaccumulativechangesofthefairvaluethatincludeintheothercomprehensiveincome,shouldtransferintothecurrentgainsandlosses.Thecommissionfeesforaudit,lawservices,assessmentandconsultancyservicesandotherrelevantexpensesoccurredinthebusinesscombinationbythecombiningpartyorthepurchaseparty,shallberecordedintocurrentprofitsandlossesupontheiroccurrence;thetransactionexpensefromtheissuanceofequitysecuritiesorbondssecuritieswhichareasconsiderationforcombinationbythecombiningparty,shouldberecordedastheinitialamountofequitysecuritiesandbondssecurities.Besidesthelong-termequityinvestmentsformedbybusinesscombination,theotherlong-termequityinvestmentsshallbeinitiallymeasuredbycost,thecostisfixedinaccordancewiththewaysofgaining,suchasactualcashpaymentpaidbytheGroup,thefairvalueofequitysecuritiesissuedbytheGroup,theagreedvalueoftheinvestmentcontractoragreement,thefairvalueororiginalcarryingamountofexchangedassetsfromnon-monetaryassetsexchangetransaction,thefairvalueofthelong-termequityinvestments,etc.Theexpenses,taxesandothernecessaryexpendituresdirectlyrelatedwithgainingthelong-termequityinvestmentsshallalsoberecordedintoinvestmentcost.Thelong-termequityinvestmentcostforthosecouldexecutesignificantinfluencesontheinvesteesbecauseofappendingtheinvestmentorcouldexecutejointcontrolbutnotformascontrol,shouldbeasthesumofthefairvalueoftheoriginalheldequityinvestmentandthenewlyaddedinvestmentcostrecognizedaccordingtotheNo.22ofAccountingStandardsforBusinessEnterprises—RecognitionandMeasurementofFinancialInstrument.(2)Subsequentmeasurementandrecognitionofgainsorlosses
Along-termequityinvestmentwheretheinvestingenterprisehasjointcontrol(exceptforwhichformsintocommonoperators)orsignificantinfluenceovertheinvestorsshouldbemeasuredbyequitymethod.Moreover,long-termequityinvestmentadoptingthecostmethodinthefinancialstatements,andwhichtheCompanyhascontroloninvestedentity.①Long-termequityinvestmentmeasuredbyadoptingcostmethodThepriceofalong-termequityinvestmentmeasuredbyadoptingthecostmethodshallbeincludedatitsinitialinvestmentcostandappendaswellaswithdrawthecostofinvestingandadjustingthelong-termequityinvestment.Thereturnoninvestmentatcurrentperiodshallberecognizedinaccordancewiththecashdividendorprofitannouncedtodistributebytheinvestedentity,excepttheannouncedbutnotdistributedcashdividendorprofitincludedintheactualpaymentorconsiderationupongainingtheinvestment.②Long-termequityinvestmentmeasuredbyadoptingequitymethodIftheinitialcostofalong-termequityinvestmentismorethantheCompany'sattributableshareofthefairvalueoftheinvestedentity'sidentifiablenetassetsforinvestment,theinitialcostofthelong-termequityinvestmentmaynotbeadjusted.Iftheinitialcostofalong-termequityinvestmentislessthantheCompany'sattributableshareofthefairvalueoftheinvestedentity'sidentifiablenetassetsforinvestment,thedifferenceshallbeincludedinthecurrentprofitsandlossesandthecostofthelong-termequityinvestmentshallbeadjustedsimultaneously.Whenmeasuredbyadoptingequitymethod,respectivelyrecognizeinvestmentincomeandothercomprehensiveincomeaccordingtothenetgainsandlossesaswellastheportionofothercomprehensiveincomewhichshouldbeenjoyedorbeshared,andatthesametimeadjustthebookvalueofthelong-termequityinvestment;correspondingreducethebookvalueofthelong-termequityinvestmentaccordingtoprofitswhichbedeclaredtodistributebytheinvesteesortheportionofthecalculationofcashdividendswhichshouldbeenjoyed;fortheotherchangesexceptforthenetgainsandlosses,othercomprehensiveincomeandtheowners’equityexceptfortheprofitsdistributionoftheinvestees,shouldadjustthebookvalueofthelong-termequityinvestmentaswellasincludeinthecapitalreserve.Theinvestingenterpriseshall,onthegroundofthefairvalueofallidentifiableassetsoftheinvestedentitywhenitobtainstheinvestment,recognizetheattributableshareofthenetprofitsandlossesoftheinvestedentityafteritadjuststhenetprofitsoftheinvestedentity.IftheaccountingpoliciesadoptedbytheinvesteesarenotaccordwiththatoftheGroup,
shouldbeadjustedaccordingtotheaccountingpoliciesoftheGroupandthefinancialstatementoftheinvesteesduringtheaccountingperiodandaccordingwhichtorecognizetheinvestmentincomeaswellasothercomprehensiveincome.ForthetransactionhappenedbetweentheGroupandassociatedenterprisesaswellasjointventures,iftheassetslaunchedorsoldnotformintobusiness,theportionoftheunrealizedgainsandlossesoftheinternaltransaction,whichbelongstotheGroupaccordingtothecalculationoftheenjoyedproportion,shouldrecognizetheinvestmentgainsandlossesonthebasis.ButthelossesoftheunrealizedinternaltransactionhappenedbetweentheGroupandtheinvesteeswhichbelongstotheimpairmentlossesofthetransferredassets,shouldnotbeneutralized.IftheassetslaunchedbythisCompanytotheassociatedenterpriseorjointventuresconstitutethebusiness,andtheinvestorobtainsthelong-termequityinvestmentbutfailstoobtainthecontrolright,thefairvalueofbusinesslaunchedistakenastheinitialinvestmentcostofnewly-increasedlong-termequityinvestment,andthedifferencebetweeninitialinvestmentcostandbookvalueofbusinesslaunchedwillbeincludedincurrentprofitandloss.IftheassetssoldbythisCompanytotheassociatedenterprisesorjointventuresconstitutethebusiness,thedifferencebetweenconsiderationandbookvalueofbusinesswillbeincludedincurrentprofitandloss.IfthisCompany'sassetspurchasedfromtheassociatedenterprisesorjointventuresconstitutebusiness,accountingtreatmentshallbeconductedinaccordancewiththeprovisionsoftheAccountingStandardsforBusinessEnterprisesNo.20--BusinessCombination,fullyrecognizethegainsorlossesrelatedtothetransaction.TheGroupshallrecognizethenetlossesoftheinvestedenterpriseuntilthebookvalueofthelong-termequityinvestmentandotherlong-termrightsandinterestswhichsubstantiallyfromthenetinvestmentmadetotheinvestedentityarereducedtozero.However,iftheGrouphastheobligationtoundertakeextralosses,itshallberecognizedastheestimatedliabilitiesinaccordancewiththeestimateddutiesandthenrecordedintoinvestmentlossesatcurrentperiod.Iftheinvestedentityrealizesanynetprofitslater,theGroupshall,aftertheamountofitsattributableshareofprofitsoffsetsagainstitsattributableshareoftheun-recognizedlosses,resumerecognizingitsattributableshareofprofits.Forthelong-termequityinvestmentheldbytheGroupbeforethefirstexecutionofthenewaccountingcriterionoftheassociatedenterprisesandjointventures,ifthereisdebitdifferenceoftheequityinvestmentrelatedtotheinvestment,shouldbeincludedinthecurrentgainsandlossesaccordingtotheamountofthestraight-lineamortizationduringtheoriginalremainedperiod.
③AcquiringsharesofminorityinterestInthepreparationforthefinancialstatements,thebalanceexistedbetweenthelong-termequityinvestmentincreasedbyacquiringsharesofminorityinterestandtheattributablenetassetsonthesubsidiarycalculatedbytheincreasedsharesheldsincethepurchasedate(orcombinationdate),thecapitalreservesshallbeadjusted,ifthecapitalreservesarenotsufficienttooffset,theretainedprofitsshallbeadjusted.④Disposaloflong-termequityinvestmentInthepreparationoffinancialstatements,theCompanydisposedpartofthelong-termequityinvestmentonsubsidiarieswithoutlosingitscontrollingrightonthem,thebalancebetweenthedisposedpriceandattributablenetassetsofsubsidiariesbydisposingthelong-termequityinvestmentshallberecordedintoowners’equity;wheretheCompanylossesthecontrollingrightbydisposingpartoflong-termequityinvestmentonsuchsubsidiaries,itshalltreatedinaccordancewiththerelevantaccountingpoliciesinNoteIV.5(2)“Methodonpreparationofcombinedfinancialstatements”.Forotherwaysondisposaloflong-termequityinvestment,thebalancebetweenthebookvalueofthedisposedequityanditsactualpaymentgainedshallberecordedintocurrentprofitsandlosses.Forthelong-termequityinvestmentmeasuredbyadoptingequitymethod,iftheremainedequityafterdisposalstilladoptstheequitymethodformeasurement,theothercomprehensiveincomeoriginallyrecordedintoshareholders’equityshouldadoptthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteesaccordingtothecorrespondingproportion.Theowners’equityrecognizedowningtothechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionoftheinvestees,shouldbetransferredintothecurrentgainsandlossesaccordingtotheproportion.Forthelong-termequityinvestmentwhichadoptsthecostmethodofmeasurement,iftheremainedequitystilladoptthecostmethod,theothercomprehensiveincomerecognizedowningtoadoptingtheequitymethodformeasurementortherecognitionandmeasurementstandardsoffinancialinstrumentbeforeacquiringthecontroloftheinvestees,shouldadoptthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteesandshouldbecarriedforwardintothecurrentgainsandlossesaccordingto
theproportion;thechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionamongthenetassetsoftheinvesteeswhichrecognizedbyadoptingtheequitymethodformeasurement,shouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion.ForthosetheGrouplostthecontroloftheinvesteesbydisposingpartoftheequityinvestmentaswellastheremainedequityafterdisposalcouldexecutejointcontrolorsignificantinfluencesontheinvestees,shouldchangetomeasurebyequitymethodwhencompilingtheindividualfinancialstatementandshouldadjustthemeasurementoftheremainedequitytoequitymethodasadoptedsincethetimeacquired;iftheremainedequityafterdisposalcouldnotexecutejointcontrolorsignificantinfluencesontheinvestees,shouldchangetheaccountingdisposalaccordingtotherelevantregulationsoftherecognitionandmeasurementstandardsoffinancialinstrument,anditsdifferencebetweenthefairvalueandbookvalueonthedatelosethecontrolrightshouldbeincludedinthecurrentgainsandlosses.FortheothercomprehensiveincomerecognizedbyadoptingequitymethodformeasurementortherecognitionandmeasurementstandardsoffinancialinstrumentbeforetheGroupacquiredthecontroloftheinvestees,shouldexecutetheaccountingdisposalbyadoptingthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteeswhenlosethecontrolofthem,whilethechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionamongthenetassetsoftheinvesteeswhichrecognizedbyadoptingtheequitymethodformeasurement,shouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion.Ofwhich,forthedisposedremainedequitywhichadoptedtheequitymethodformeasurement,theothercomprehensiveincomeandtheotherowners’equityshouldbecarriedforwardaccordingtotheproportion;forthedisposedremainedequitywhichchangedtoexecutetheaccountingdisposalaccordingtotherecognitionandmeasurementstandardsoffinancialinstrument,theothercomprehensiveincomeandtheotherowners’equityshouldbecarriedforwardinfullamount.ForthosetheGrouplostthecontroloftheinvesteesbydisposingpartoftheequityinvestment,thedisposedremainedequityshouldchangetocalculateaccordingtotherecognitionandmeasurementstandardsoffinancialinstrument,anddifferencebetweenthefairvalueandbookvalueonthedatelosethecontrolrightshouldbeincludedinthecurrentgainsandlosses.Fortheothercomprehensiveincomerecognizedfromtheoriginalequity
investmentbyadoptingtheequitymethod,shouldexecutetheaccountingdisposalbyadoptingthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteeswhenterminatetheequitymethodformeasurement,whilefortheowners’equityrecognizedowningtothechangesoftheotherowner’sequityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionoftheinvestees,shouldbetransferredintothecurrentinvestmentincomewithfullamountwhenterminateadoptingtheequitymethod.TheGrouprespectivelydisposestheequityinvestmentofthesubsidiariesthroughmultipletransactionsuntillosethecontrolright,iftheabovetransactionsbelongstothepackagedeal,shouldexecutetheaccountingdisposalbyregardingeachtransactionasadealofdisposingtheequityinvestmentofthesubsidiariesuntillosethecontrolright,whilethedifferencebetweeneachexpensesofthedisposalandthebookvalueofthelong-termequityinvestmentinaccordwiththedisposedequitybeforelosingthecontrolright,shouldfirstlyberecognizedasothercomprehensiveincomethenbetransferredintothecurrentgainsandlossesoflosingthecontrolrightalonguntilthetimewhenloseit.14.InvestmentRealEstatesTheterm“investmentrealestate”referstotherealestateheldforgeneratingrentand/orcapitalappreciation.InvestmentrealestatesoftheGroupincludetherighttouseanylandwhichhasalreadybeenrented;therighttouseanylandwhichisheldandpreparedfortransferafterappreciation;andtherighttouseanybuildingwhichhasalreadybeenrented.Theinitialmeasurementoftheinvestmentrealestateshallbemadeatitscost.SubsequentexpendituresincurredforaninvestmentrealestateisincludedinthecostoftheinvestmentrealestatewhenitisprobablethateconomicbenefitsassociatedwiththeinvestmentrealestatewillflowtotheGroupandthecostcanbereliablymeasured,otherwisetheexpenditureisrecognizedinprofitorlossintheperiodinwhichtheyareincurred.TheGroupshallmakeafollow-upmeasurementtotheinvestmentrealestatebyemployingthecostpatternonthedateofthebalancesheet.Anaccrualdepreciationoramortizationshallbemadefortheinvestmentrealestatesinthelightoftheaccountingpoliciesoftheuserightofbuildingsorlands.Fordetailsofimpairmenttestmethodandwithdrawalmethodofimpairmentprovisionofinvestmentrealestates,pleaserefertoNoteIV.20.“Long-termassetsimpairment”.Whenowner-occupiedrealestateorinventoriesarechangedintoinvestmentrealestateor
investmentrealestateischangedintoowner-occupiedrealestate,ofwhichbookvaluepriortothechangeshallbetheentryvalueafterthechange.Whenaninvestmentrealestateischangedtoanowner-occupiedrealestate,itwouldbetransferredtofixedassetsorintangibleassetsatthedateofsuchchange.Whenanowner-occupiedrealestateischangedtobeheldtoearnrentalorforcapitalappreciation,thefixedassetorintangibleassetistransferredtoinvestmentrealestateatthedateofsuchchange.Ifthefixedassetorintangibleassetischangedintoinvestmentrealestatemeasuredbyadoptingthecostpattern,whosebookvaluepriortothechangeshallbetheentryvalueafterthechange;ifthefixedassetorintangibleassetischangedintoinvestmentrealestatemeasuredbyadoptingthefairvaluepattern,whosefairvalueonthedateofsuchchangeshallbetheentryvalueafterthechangeAninvestmentrealestateisderecognizedondisposalorwhentheinvestmentrealestateispermanentlywithdrawnfromuseandnofutureeconomicbenefitsareexpectedfromitsdisposal.Theamountofproceedsonsale,transfer,retirementordamageofaninvestmentrealestatelessitscarryingamountandrelatedtaxesandexpensesisrecognizedinprofitorlossintheperiodinwhichitisincurred.15.FixedAssets(1)ConditionsforrecognitionoffixedassetsTheterm"fixedassets"referstothetangibleassetsthatsimultaneouslypossessthefeaturesasfollows:(a)theyareheldforthesakeofproducingcommodities,renderinglabourservice,rentingorbusinessmanagement;and(b)theirusefullifeisinexcessofonefiscalyear.ThefixedassetsareonlyrecognizedwhentherelevanteconomicbenefitsprobablyflowintheGroupanditscostcouldbereliablemeasured.Thefixedassetsshouldtaketheinitialmeasurementaccordingtothecostandatthesametimeconsidertheinfluencesofthefactorsoftheestimateddiscardexpenses.(2)DepreciationmethodsofeachfixedassetThefixedassetsshouldbewithdrawnanddepreciationbystraight-linedepreciationwithintheusefullifesincethenextmonthwhenthefixedassetsreachtheestimatedavailablestate.Theusefullife,estimatednetsalvageandtheyearlydiscountedrateofeachfixedassetareasfollows:
| Categoryoffixedassets | Method | Usefullife(Year) | Expectednetsalvagevalue(%) | Annualdeprecation(%) |
| Housingandbuilding | Straight-linedepreciation | 20-40 | 5-10.00 | 2.25-4.75 |
| Machineryequipment | Straight-linedepreciation | 5-10 | 5-10.00 | 9.00-19.00 |
| Electronicequipment | Straight-linedepreciation | 3-5 | 5-10.00 | 18.00-31.67 |
| Transportationvehicle | Straight-linedepreciation | 3-5 | 5-10.00 | 18.00-31.67 |
| Otherequipment | Straight-linedepreciation | 5 | 5-10.00 | 18.00-19.00 |
The“expectednetsalvagevalue”referstotheexpectedamountthattheGroupmayobtainfromthecurrentdisposalofafixedassetafterdeductingtheexpecteddisposalexpensesattheexpirationofitsexpectedusefullife.(3)TestingmethodofimpairmentandwithdrawalmethodofprovisionforimpairmentonfixedassetsFordetailsofthetestingmethodofimpairmentandwithdrawmethodofimpairmentprovisionforimpairmentonfixedassets,pleaserefertoNoteIV.20“Long-termassetsimpairment”.(4)Recognitionbasis,pricinganddepreciationmethodoffixedassetsbyfinanceleaseThe“financelease”shallrefertoaleasethathastransferredinsubstancealltherisksandrewardsrelatedtotheownershipofanasset.Itsownershipmayormaynoteventuallybetransferred.Thefixedassetsbyfinanceleaseshalladoptthesamedepreciationpolicyforself-ownedfixedassets.Ifitisreasonabletobecertainthatthelesseewillobtaintheownershipoftheleasedassetwhentheleasetermexpires,theleasedassetshallbefullydepreciatedoveritsusefullife.Ifitisnotreasonabletobecertainthatthelesseewillobtaintheownershipoftheleasedassetattheexpiryoftheleaseterm,theleasedassetshallbefullydepreciatedovertheshorteroneoftheleasetermoritsusefullife.
(5)Otherexplanations
Thefollow-upexpensesrelatedtoafixedasset,iftheeconomicbenefitspertinenttothisfixedassetarelikelytoflowintotheenterpriseanditscostcanbereliablymeasured,shallberecordedintocostoffixedassetsandultimatelyrecognizedasthebookvalueofthereplacedpart;otherwise,theyshallbeincludedinthecurrentprofitsandlosses.Terminatetorecognizethefixedassetswhenthefixedassetsunderthedisposingstateorbeestimatedthatcouldnotoccuranyeconomybenefitsthroughusingordisposing.WhentheGroupsells,transfersordiscardsanyfixedassets,orwhenanyfixedassetsoftheGroupisdamagedordestroyed,theGroupshalldeductthebookvalueofthefixedassetsaswellastherelevanttaxesfromthedisposalincome,andincludetheamountinthecurrentprofitsandlosses.TheGroupshallchecktheusefullife,expectednetsalvagevalueanddepreciationmethodofthefixedassetsattheendoftheyearatleast,ifthereisanychange,itshallberegardedasachangeoftheaccountingestimates.16.ConstructioninProgressConstructioninprocessismeasuredatactualcost.Actualcostcomprisesconstructioncosts,borrowingcoststhatareeligibleforcapitalizationbeforethefixedassetsbeingreadyfortheirintendedusandotherrelevantcosts.Constructioninprocessistransferredtofixedassetswhentheassetsarereadyfortheirintendeduse.Fordetailsofthetestingmethodofimpairmentandwithdrawmethodofimpairmentprovisiononconstructioninprogress,pleaserefertoNoteIV.20“Long-termassetsimpairment”.17.BorrowingCostsTheborrowingcostsshallincludeinterestonborrowings,amortizationofdiscountsorpremiumsonborrowings,ancillaryexpenses,andexchangebalanceonforeigncurrencyborrowings.Whentheborrowingcostscanbedirectlyattributabletotheconstructionorproductionofassetseligibleforcapitalization,andtheassetdisbursementsortheborrowingcostshavealreadyincurred,andtheconstructionorproductionactivitieswhicharenecessarytopreparetheassetforitsintendeduseorsalehavealreadystarted,thecapitalizationofborrowingcostsbegins.Whentheasseteligibleforcapitalizationunderacquisitionandconstructionorproductionisreadyfortheintendeduseorsale,thecapitalizationofthe
borrowingcostsshallbeceased.Otherborrowingcostsshallberecognizedasexpenseswhenincurred.Theto-be-capitalizedamountofinterestsshallbedeterminedinlightoftheactualinterestsincurredofthespeciallyborrowedloanatthepresentperiodminustheincomeofinterestsearnedontheunusedborrowingloansasadepositinthebankorasatemporaryinvestment;theenterpriseshallcalculateanddeterminetheto-be-capitalizedamountonthegeneralborrowingbymultiplyingtheweightedaverageassetdisbursementofthepartoftheaccumulativeassetdisbursementsminusthegeneralborrowingbythecapitalizationrateofthegeneralborrowingused.Thecapitalizationrateshallbecalculatedanddeterminedinlightoftheweightedaverageinterestrateofthegeneralborrowing.Duringtheperiodofcapitalization,theexchangebalanceonforeigncurrencyspecialborrowingsshallbecapitalized;theexchangebalanceonforeigncurrencygeneralborrowingsshallberecordedintocurrentprofitsandlosses.Theterm“assetseligibleforcapitalization”referstothefixedassets,investmentrealestate,inventoriesandotherassets,ofwhichtheacquisitionandconstructionorproductionmaytakequitealongtimetogetreadyforitsintendeduseorforsale.Wheretheacquisitionandconstructionorproductionofaqualifiedassetisinterruptedabnormallyandtheinterruptionperiodlastsformorethan3months,thecapitalizationoftheborrowingcostsshallbesuspended.18.IntangibleAssets(1)Pricingmethod,usefullifeandimpairmenttestTheterm“intangibleasset”referstotheidentifiablenon-monetaryassetspossessedorcontrolledbyenterpriseswhichhavenophysicalshape.Theintangibleassetsshallbeinitiallymeasuredaccordingtoitscost.Thecostsrelatedwiththeintangibleassets,iftheeconomicbenefitsrelatedtointangibleassetsarelikelytoflowintotheenterpriseandthecostofintangibleassetscanbemeasuredreliably,shallberecordedintothecostsofintangibleassets;otherwise,itshallberecordedintocurrentprofitsandlossesupontheoccurrence.Theuserightoflandgainedisusuallymeasuredasintangibleassets.Fortheself-developedandconstructedfactoriesandotherconstructions,therelatedexpendituresonuserightoflandandconstructioncostsshallberespectivelymeasuredasintangibleassetsandfixed
assets.Forthepurchasedhousesandbuildings,therelatedpaymentshallbedistributedintothepaymentforuserightoflandandthepaymentforbuildings,ifitisdifficulttobedistributed,thewholepaymentshallbetreatedasfixedassets.Forintangibleassetswithafiniteservicelife,fromthetimewhenitisavailableforuse,thecostafterdeductingthesumoftheexpectedsalvagevalueandtheaccumulatedimpairmentprovisionshallbeamortizedbystraightlinemethodduringtheservicelife.Whiletheintangibleassetswithoutcertainservicelifeshallnotbeamortized.Attheendofperiod,theGroupshallchecktheservicelifeandamortizationmethodofintangibleassetswithfiniteservicelife,ifthereisanychange,itshallberegardedasachangeoftheaccountingestimates.Besides,theGroupshallchecktheservicelifeofintangibleassetswithoutcertainservicelife,ifthereisanyevidenceshowingthattheperiodofintangibleassetstobringtheeconomicbenefitstotheenterprisecanbeprospected,itshallbeestimatedtheservicelifeandamortizedinaccordancewiththeamortizationpoliciesforintangibleassetswithfiniteservicelife.
(2)R&Dexpenses
Theexpendituresforinternalresearchanddevelopmentprojectsofanenterpriseshallbeclassifiedintoresearchexpendituresanddevelopmentexpenditures.Theresearchexpendituresshallberecordedintotheprofitorlossforthecurrentperiod.Thedevelopmentexpendituresshallbeconfirmedasintangibleassetswhentheysatisfythefollowingconditionssimultaneously,andshallberecordedintoprofitorlossforthecurrentperiodwhentheydon’tsatisfythefollowingconditions.①Itisfeasibletechnicallytofinishintangibleassetsforuseorsale;②Itisintendedtofinishanduseorselltheintangibleassets;③Theusefulnessofmethodsforintangibleassetstogenerateeconomicbenefitsshallbeproved,includingbeingabletoprovethatthereisapotentialmarketfortheproductsmanufacturedbyapplyingtheintangibleassetsorthereisapotentialmarketfortheintangibleassetsitselfortheintangibleassetswillbeusedinternally;④Itisabletofinishthedevelopmentoftheintangibleassets,andabletouseorselltheintangibleassets,withthesupportofsufficienttechnologies,financialresourcesandotherresources;
⑤Thedevelopmentexpendituresoftheintangibleassetscanbereliablymeasured.Asforexpensesthatcan’tbeidentifiedasresearchexpendituresordevelopmentexpenditures,theoccurredR&Dexpensesshallbeallincludedincurrentprofitsandlosses.(3)TestingmethodofimpairmentandwithdrawmethodofimpairmentprovisionofintangibleassetsFordetailsofthetestingmethodofimpairmentandwithdrawmethodofimpairmentprovisiononintangibleassets,seeNotesIV.20“Long-termassetsimpairment”.19.AmortizationMethodofLong-termDeferredExpensesLong-termdeferredexpensesrefertogeneralexpenseswiththeapportionedperiodoveroneyear(oneyearexcluded)thathaveoccurredbutattributabletothecurrentandfutureperiods.Long-termdeferredexpenseshallbeamortizedaveragelywithinbenefitperiod.20.ImpairmentofLong-termAssetsFornon-currentfinancialAssetsoffixedAssets,projectsunderconstruction,intangibleAssetswithlimitedservicelife,investingrealestatewithcostmodel,long-termequityinvestmentofsubsidiaries,cooperativeenterprisesandjointventures,theGroupshouldjudgewhetherdecreaseinvalueexistsonthedateofbalancesheet.Recoverableamountsshouldbetestedfordecreaseinvalueifitexists.OtherintangibleAssetsofreputationanduncertainservicelifeandothernon-accessibleintangibleassetsshouldbetestedfordecreaseinvaluenomatterwhetheritexists.Iftherecoverableamountislessthanbookvalueinimpairmenttestresults,theprovisionforimpairmentofdifferencesshouldincludeinimpairmentloss.Recoverableamountswouldbethehigherofnetvalueofassetfairvaluedeductingdisposalchargesorpresentvalueofpredictedcashflow.Assetfairvalueshouldbedeterminedaccordingtonegotiatedsalespriceoffairtrade.Ifnosalesagreementexistsbutwithassetactivemarket,fairvalueshouldbedeterminedaccordingtotheBuyer’spriceoftheasset.Ifnosalesagreementorassetactivemarketexists,assetfairvaluecouldbeacquiredonthebasisofbestinformationavailable.Disposalexpensesincludelegalfees,taxes,cartageorotherdirectexpensesofmerchantableAssetsrelatedtoassetdisposal.PresentvalueofpredictedassetcashflowshouldbedeterminedbytheproperdiscountrateaccordingtoAssetsinserviceandpredictedcashflowoffinaldisposal.AssetdepreciationreservesshouldbecalculatedonthebasisofsingleAssets.IfitisdifficulttopredicttherecoverableamountsforsingleAssets,recoverable
amountsshouldbedeterminedaccordingtothebelongingassetgroup.Assetgroupistheminimumassetcombinationproducingcashflowindependently.Inimpairmenttest,bookvalueofthebusinessreputationinfinancialreportshouldbesharedtobeneficialassetgroupandassetgroupcombinationincollaborationofbusinessmerger.Itisshowninthetestthatifrecoverableamountsofsharedbusinessreputationassetgrouporassetgroupcombinationarelowerthanbookvalue,itshoulddeterminetheimpairmentloss.Impairmentlossamountshouldfirstlybedeductedandsharedtothebookvalueofbusinessreputationofassetgrouporassetgroupcombination,thendeductbookvalueofallassetsaccordingtoproportionsofotherbookvalueofaboveassetsinassetgrouporassetgroupcombinationexceptbusinessreputation.Aftertheassetimpairmentlossisdetermined,recoverablevalueamountswouldnotbereturnedinfuture.21.EmployeeCompensationEmployeecompensationoftheCompanymainlyincludesshort-termemployeecompensation,departurebenefits,demissionbenefitsandotherlong-termemployeecompensation.Ofwhich:
Short-termcompensationmainlyincludingsalary,bonus,allowancesandsubsidies,employeeservicesandbenefits,medicalinsurancepremiums,birthinsurancepremium,industrialinjuryinsurancepremium,housingfund,labourunionexpenditureandpersonneleducationfund,non-monetarybenefitsetc.Theshort-termcompensationactuallyhappenedduringtheaccountingperiodwhentheactivestaffofferingtheservicefortheGroupshouldberecognizedasliabilitiesandisincludedinthecurrentgainsandlossesorrelevantassetscost.Ofwhichthenon-monetarybenefitsshouldbemeasuredaccordingtothefairvalue.Welfareafterdemissionmainlyincludessettingdrawingplan.Definedcontributionplansincludebasicendowmentinsurance,unemploymentinsuranceandannuity.Depositedamountsarechargedtorelevantassetcostsorcurrentprofitsandlossesduringtheperiodinwhichtheyareincurred.DefinedbenefitplanoftheCompanyisinternalearlyretirementplan.Accordingtoanticipatedaccumulativewelfareunit,theCompanymakesestimatesbyunbiasedandconsistentactuarialassumptionforthedemographicvariablesandfinancialvariables,measurestheobligationsproducedindefinedbenefitplans,anddeterminesthevestingperiod.Onbalancesheetdate,theCompanywilllistallobligationsin
definedbenefitplansaspresentvalueandincludecurrentservicecostsintocurrentprofitsandlosses.Whenterminatinglabourrelationsbeforeexpirationofcontract,orlayoffswithcompensations,andtheCompanycannotterminatethelabourrelationsunilaterallyorreducethedemissionwelfare,remunerationandliabilitiesproducedfromthedemissionwelfareshouldbedeterminedandincludedincurrentprofitsandlosseswhendeterminingthecostsofdemissionwelfareandrecombination.However,demissionwelfarenotfullypaidwithin12monthsafterannualReportingPeriodshouldbehandledthesameasotherlong-termemployees’payrolls.Theinsideemployeeretirementplanistreatedbyadoptingthesameprinciplewiththeabovedismissionwelfare.Thegroupwouldrecordedthesalaryandthesocialsecurityinsurancefeespaidandsoonfromtheemployee’sserviceterminativedatetonormalretirementdateintocurrentprofitsandlosses(dismissionwelfare)undertheconditionthattheymeettherecognitionconditionsofestimatedliabilities.Theotherlong-termwelfarethattheGroupofferstothestaffs,ifmetwiththesettingdrawingplan,shouldbeaccountingdisposedaccordingtothesettingdrawingplan,whiletherestshouldbedisposedaccordingtothesettingrevenueplan.22.EstimatedLiabilitiesThecompanyshouldrecognizetherelatedobligationasaprovisionforliabilitywhentheobligationmeetsthefollowingconditions:(1)Thatobligationisapresentobligationoftheenterprise;(2)Itisprobablethatanoutflowofeconomicbenefitsfromtheenterprisewillberequiredtosettletheobligation;(3)Areliableestimatecanbemadeoftheamountoftheobligation.Onthebalancesheetdate,anenterpriseshalltakeintofullconsiderationoftherisks,uncertainty,timevalueofmoney,andotherfactorspertinenttotheContingenciestomeasuretheestimatedliabilitiesinaccordancewiththebestestimateofthenecessaryexpensesfortheperformanceofthecurrentobligation.Whenallorsomeoftheexpensesnecessaryfortheliquidationofanestimatedliabilitiesofanenterpriseisexpectedtobecompensatedbyathirdparty,thecompensationshouldbeseparatelyrecognizedasanassetonlywhenitisvirtuallycertainthatthereimbursementwillbeobtained.Besides,theamountrecognizedforthereimbursementshouldnotexceedthe
bookvalueoftheestimatedliabilities.23.Revenue
(1)Revenuefromsellinggoods
Norevenuefromsellinggoodsmayberecognizedunlessthefollowingconditionsaremetsimultaneously:thesignificantrisksandrewardsofownershipofthegoodshavebeentransferredtothebuyerbytheenterprise;theenterpriseretainsneithercontinuousmanagementrightthatusuallykeepsrelationwiththeownershipnoreffectivecontroloverthesoldgoods;therelevantamountofrevenuecanbemeasuredinareliableway;therelevanteconomicbenefitsmayflowintotheenterprise;andtherelevantcostsincurredortobeincurredcanbemeasuredinareliableway.Therecognitionofrevenuefromcommoditiesforthehomemarketwhenshippingthegoodsortransferringpropertyingoods;forgoodsexported,therevenueshallberecognizedoncethegoodsareclearedthroughcustomsanddeliveredtothecarrierdesignatedbythepurchaser;forgoodsdirectlytradedinoverseas,therevenueshallberecognizedwhencustomerspickupthegoodsorthegoodsaredeliveredtotheassignedplacebycustomers.
(2)Providinglabourservices
IftheGroupcanreliablyestimatetheoutcomeofatransactionconcerningthelabourservicesitprovides,itshallrecognizetherevenuefromprovidingservicesemployingthepercentage-of-completionmethodonthedateofthebalancesheet.Thecompletedproportionofatransactionconcerningtheprovidingoflabourservicesshallbedecidedbytheproportionofthelabourservicealreadyprovidedtothetotallabourservicetoprovide.Theoutcomeofatransactionconcerningtheprovidingoflabourservicescanbemeasuredinareliableway,meansthatthefollowingconditionsshallbemetsimultaneously:①Theamountofrevenuecanbemeasuredinareliableway;②Therelevanteconomicbenefitsarelikelytoflowintotheenterprise;③Thescheduleofcompletionunderthetransactioncanbeconfirmedinareliableway;and④Thecostsincurredortobeincurredinthetransactioncanbemeasuredinareliableway.Iftheoutcomeofatransactionconcerningtheprovidingoflabourservicescannotbemeasuredinareliableway,therevenuefromtheprovidingoflabourservicesshallberecognizedinaccordancewiththeamountofthecostoflabourservicesincurredand
expectedtobecompensated,andmakethecostoflabourservicesincurredasthecurrentexpenses.Ifitispredictedthatthecostoflabourservicesincurredcouldn’tbecompensated,thusnorevenueshallberecognized.WhereacontractoragreementsignedbetweenGroupandotherenterprisesconcernssellinggoodsandprovidingoflabourservices,ifthepartofsaleofgoodsandthepartofprovidinglabourservicescanbedistinguishedfromeachotherandcanbemeasuredrespectively,thepartofsaleofgoodsandthepartofprovidinglabourservicesshallbetreatedrespectively.Ifthepartofsellinggoodsandthepartofprovidinglabourservicescannotbedistinguishedfromeachother,orifthepartofsaleofgoodsandthepartofprovidinglabourservicescanbedistinguishedfromeachotherbutcannotbemeasuredrespectively,bothpartsshallbeconductedassellinggoods.(3)ConstructioncontractincomeUndercircumstanceofthattheoutcomeoftheconstructioncontractcanbereliablyestimated,thecontractincomeandcostsareconfirmedonthebalancesheetdateinaccordancewiththepercentageofcompletionmethod.Thecompletionofthecontractisdeterminedbytheproportionoftheincurredlaborcoststotheestimatedtotalcosts.Thattheresultoftheconstructioncontractcanbereliablyestimatedreferstothat:①thetotalincomeofthecontractcanbereliablymeasured;②theeconomicbenefitsrelatedtothecontractarelikelytoflowintotheenterprise;③Theactualcontractcostscanbeclearlydifferentiatedandreliablymeasured;④thecompletionofthecontractandthecostsneededtocompletethecontractcanbereliablydetermined.Iftheresultoftheconstructioncontractcannotbereliablyestimated,butthecontractcostcanberecovered,thecontractincomecanbeconfirmedaccordingtotheactualcontractcostthatcanberecovered,andthecontractcostisconfirmedasthecontractexpenseinthecurrentoccurringperiod;forthecontractcostthatcannotberecovered,itisimmediatelyconfirmedasthecontractcostbutnotthecontractincomewhenitoccurs.Iftheuncertaintiesthatmaketheresultsoftheconstructioncontractcannotbereliablyestimatedarenolongerinexistence,theincomeandexpensesrelatedtotheconstructioncontractaredeterminedaccordingtothepercentageofcompletionmethod.Iftheestimatedtotalcostofthecontractexceedsthetotalcontractincome,theestimatedlossisconfirmedasthecurrentexpense.Theaccumulatedcostsincurredinthecontractinprogress,theaccumulatedrecognizedgrossprofit(loss)andthesettledpricearestatedinthebalancesheetasnetoffset.Thepartofthe
sumoftheaccumulatedcostsincurredinthecontractinprogressandtheaccumulatedrecognizedgrossprofit(loss)thatexceedsthesettledpriceisstatedastheinventory;thepartofthesettlementcostsofthecontractinprogressthatexceedsthesumoftheaccumulatedcostsincurredandtheaccumulatedrecognizedgrossprofit(loss)arestatedasaccountcollectedinadvance.(4)BusinessincomeofBOTandPPPTheCompanyparticipatesintheconstructionofpublicinfrastructurebymeansofBOTandPPP.Duringtheconstructionperiod,theCompanyrecognizestherelevantrevenueandexpensesfromprovidingservicesinaccordancewithASBENo.15-ConstructionContracts.Afterthecompletionofinfrastructure,theCompanyrecognizestherevenuefromrelatedtofollow-upservicesinaccordancewithASBENo.14-Revenue.Revenuefromconstructioncontractsismeasuredatthefairvalueofcollectedconsiderationorconsiderationreceivable(generallytheamountofconstructioncontracts),andfinancialassetsorintangibleassetsarerecognized,intherecognitionofrevenue,inthefollowingcircumstances:
①Thecontractstipulatesthatwithinacertainperiodafterthecompletionofinfrastructure,thecompanyundertakentheprojectmayunconditionallycollectmoneyorotherfinancialassetsofafixedamountfromthepartyawardingthecontract;or,wheretheservicesfeechargedbythecompanyundertakentheprojectislowerthanaspecifiedamount,andthepartyawardingthecontractisresponsibleforcompensatingtherelevantpricedifferencetothecompanyundertakentheprojectinaccordancewiththecontract,intherecognitionofrevenue,financialassetsarerecognizedandtreatedinaccordancewiththeprovisionsofASBENo.22-RecognitionandMeasurementofFinancialInstruments.②ThecontractstipulatesthattheCompanyhastherighttocollectfeesfromthepartyreceivingserviceswithinacertainperiodoftimeafterthecompletionofrelevantinfrastructure.However,iftheamountoffeesisuncertain,thisrightdoesnotconstituteanunconditionalrighttocollectcash.TheCompanyundertakentheprojectshallrecognizeintangibleassetsintherecognitionofrevenue.Incasethatinterestonborrowingoccursintheconstructionprocess,itshallbetreatedinaccordancewiththeprovisionsofASBENo.17-BorrowingCosts.Incasethattheprojectcompanyfailstoprovideactualconstructionservicesandcontracts
theinfrastructureconstructiontootherparties,therewillbenorecognitionofrevenuefromconstructionservices,andtheprojectpricepaidintheconstructionprocessisrecognizedasfinancialassetsorintangibleassetsinaccordancewiththecontract.
(5)Interestrevenue
TheamountofinterestrevenueshouldbemeasuredandconfirmedinaccordancewiththelengthoftimeforwhichtheGroup’smonetaryfundisusedbyothersandtheagreedinterestrate.
(6)Propertyleasingrevenue
Fortherecognitionmethodofthepropertyleasingrevenue,pleaserefertoNotesIV.26.
(7)Factoringbusinessrevenue
Takethepaid-infactoringpaymentasthefairvaluetocarryoutinitialmeasurement.Subsequentmeasurementshallbecarriedoutaspertheeffectiveinterestmethodaccordingtotheamortizedcost.Takethebalancebetweenthefairvalueinitiallyconfirmedandtransferredamountofaccountsreceivableorfacevalueofnotesreceivableastheinterestincomebyeffectiveinterestsmethodandamortizedcostsduringthefinancingperiodortherestcreditperiod;interestincomeshallberecognizedbystraight-linemethodifitisduewithin1year.Theprofitsandlossesfromterminationofrecognition,impairment,andamortizationshallbeincludedintothecurrentprofitsandlosses.
(8)Financeleaseincome
Asafinanciallessor,theCompanyrecognizes,onthebeginningdateoftheleaseterm,thesumoftheminimumrentalreceivablesontheleasestartdateandtheinitialdirectcostsastheentryvalueoffinancialleasereceivable,andrecordstheunguaranteedresidentialvalue.Thedifferencebetweenthesumofminimumrentalreceivablesplustheunguaranteedresidentialvalueandthepresentvalueisrecognizedasunrealizedfinancingrevenue.Unrealizedfinancingrevenueismeasuredusingtherealinterestratemethodduringtheleasetermandrecognizedascurrentfinancingleaserevenue.Contingentrentsareincludedincurrentprofitsandlosseswhentheyactuallyoccur.24.GovernmentSubsidiesAgovernmentsubsidymeansthemonetaryornon-monetaryassetsobtainedfreebytheGroupfromthegovernment,butexcludingthecapitalinvestedbythegovernmentastheinvestorwithcorrespondingowner’sequity.Governmentsubsidiesconsistofthegovernment
subsidiespertinenttoassetsandgovernmentsubsidiespertinenttoincome.GovernmentsubsidythatisobtainedbythisCompanyusedforpurchasingoracquisitionandconstruction,orformingthelong-termassetsbyotherways,whichisconfirmedthegovernmentsubsidyrelatedtoassets;Othergovernmentsubsidiesshallbedefinedasthegovernmentsubsidythatrelatedwithinterest.Ifitdoesnotclearthesubsidyobjectinthegovernmentdocument,thegrantswillbedividedbasedonthefollowingmodesintogovernmentsubsidyrelatedtoearningsandgovernmentsubsidyrelatedtoassets:(1)Iftheparticularprojectofthegrantsisclearinthegovernmentdocument,makeadivisionaccordingtotherelativeproportionofexpenseamountoftheformedassetsinthebudgetoftheparticularprojectandtheexpenseamountincludedinthecost,shallreviewthedivisionratiorequiredateachbalancesheetdateandmakechangesifnecessary;(2)Onlymakegeneralstatementsfortheapplicationinthegovernmentdocument,fornotspecifyingtheparticularitem,asthegovernmentalsubsidyrelatedtoearnings.Ifagovernmentsubsidyisamonetaryasset,itshallbemeasuredinthelightofthereceivedorreceivableamount.Ifagovernmentsubsidyisanon-monetaryasset,itshallbemeasuredatitsfairvalue.Ifitsfairvaluecannotbeobtainedinareliableway,itshallbemeasuredatitsnominalamount.Thegovernmentsubsidiesmeasuredattheirnominalamountsshallbedirectlyincludedinthecurrentprofitsandlosses.WhenthisCompanyactuallyreceivedthegovernmentsubsidy,recognizeandmeasureastheactualmeasuredamount.Ifthegovernmentgrantsrelatedtoassetsarerecognizedasdeferredincomeandareincludedintheprofitsandlossesbyinstalmentsinareasonableandsystematicwaywithintheservicelifeofunderlyingassets.Thegovernmentgrantsrelatedtoincome,usingtocompensatetherelevantexpensesorlossesinthelaterperiodshallberecognizedasthedeferredincomeandareincludedinthecurrentprofitorlossintheperiodofconfirmingtherelatedexpensesorlosses;Ifthegovernmentgrantisusedforcompensatingtheoccurredcostsorloss,includeitinthecurrentprofitandlossdirectly.Atthesametime,forthegovernmentsubsidiesrelatedtoassetsandprofits,carryoutdifferentaccountingprocessingfordifferentparts;forthegovernmentalsubsidyhardtodifferentiate,theoverallgovernmentalsubsidiesaretakenasthegovernmentalsubsidyrelatedtorevenue.ThegovernmentgrantsrelatedtodailyactivitiesofthisCompanyshallbeincludedinotherrevenuesoroffsetrelatedcostsaccordingtotheeconomicbusinessnature;Governmentsubsidiesunrelatedtodailyactivitiesshallbeincludedintothenon-operatingprofits.
Ifthegovernmentalsubsidiesconfirmedneedstobereturnedandthereisthedeferredearningsbalanceconcerned,thebookbalanceofrelevantdeferredearningsshallbeoffsetagainst,buttheexcessivepartshallbeincludedintocurrentprofitsandlosses;Governmentsubsidiesbelongingtoothersituationsshallbedirectlyincludedintocurrentlossesandprofits.25.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities(1)IncometaxofthecurrentperiodOnthebalancesheetdate,forthecurrentincometaxliabilities(orassets)ofthecurrentperiodaswellasthepartformedduringthepreviousperiod,shouldbemeasuredbytheincometaxoftheestimatedpayable(returnable)amountwhichbecalculatedaccordingtotheregulationsofthetaxlaw.Theamountoftheincometaxpayablewhichisbasedbythecalculationofthecurrentincometaxexpenses,areaccordingtotheresultmeasuredfromthecorrespondingadjustmentofthepre-taxaccountingprofitof2014whichinaccordtotherelevantregulationsofthetaxlaw.(2)DeferredincometaxassetsanddeferredincometaxliabilitiesThedifferencebetweenthebookvalueofcertainassetsandliabilitiesandtheirtaxassessmentbasis,aswellasthetemporarydifferenceoccursfromthedifferencebetweenthebookvalueoftheitemswhichnotberecognizedasassetsandliabilitiesbutcouldconfirmtheirtaxassessmentbasisaccordingtotheregulationsofthetaxlaw,thedeferredincometaxassetsandthedeferredincometaxliabilitiesshouldberecognizedbyadoptingliabilitieslawofthebalancesheet.Nodeferredtaxliabilityisrecognizedforatemporarydifferencearisingfromtheinitialrecognitionofgoodwill,theinitialrecognitionofassetsorliabilitiesduetoatransactionotherthanabusinesscombination,whichaffectsneitheraccountingprofitnortaxableprofit(ordeductibleloss).Besides,nodeferredtaxassetsisrecognizedforthetaxabletemporarydifferencesrelatedtotheinvestmentsofsubsidiarycompanies,associatedenterprisesandjointenterprises,andtheinvestingenterprisecancontrolthetimeofthereverseoftemporarydifferencesaswellasthetemporarydifferencesareunlikelytobereversedintheexceptedfuture.Otherwise,theGroupshouldrecognizethedeferredincometaxliabilitiesarisingfromothertaxabletemporarydifference.Nodeferredtaxableassetsshouldberecognizedforthedeductibletemporarydifferenceofinitialrecognitionofassetsandliabilitiesarisingfromthetransactionwhichisnotbusiness
combination,theaccountingprofitswillnotbeaffected,norwillthetaxableamountordeductiblelossbeaffectedatthetimeoftransaction.Besides,nodeferredtaxableassetsshouldberecognizedforthedeductibletemporarydifferencerelatedtotheinvestmentsofthesubsidiarycompanies,associatedenterprisesandjointenterprises,whicharenotlikelytobereversedintheexpectedfutureorisnotlikelytoacquireanyamountoftaxableincometaxthatmaybeusedformakingupsuchdeductibletemporarydifferences.Otherwise,theCompanyshallrecognizethedeferredincometaxassetsarisingfromadeductibletemporarydifferencebasingontheextentoftheamountofthetaxableincomethatislikelytobeacquiredtomakeupsuchdeductibletemporarydifferencesForanydeductiblelossortaxdeductionthatcanbecarriedforwardtothenextyear,thecorrespondingdeferredincometaxassetshallbedeterminedtotheextentthattheamountoffuturetaxableincometobeoffsetbythedeductiblelossortaxdeductiontobelikelyobtained.Onthebalancesheetdate,thedeferredincometaxassetsandthedeferredincometaxliabilitiesshallbemeasuredatthetaxrateapplicabletotheperiodduringwhichtheassetsareexpectedtoberecoveredortheliabilitiesareexpectedtobesettled.Thebookvalueofdeferredincometaxassetsshallbereviewedateachbalancesheetdate.Ifitisunlikelytoobtainsufficienttaxableincometooffsetagainstthebenefitofthedeferredincometaxasset,thebookvalueofthedeferredincometaxassetsshallbewrittendown.Anysuchwrite-downshouldbesubsequentlyreversedwhereitbecomesprobablethatsufficienttaxableincomewillbeavailable.
(3)Incometaxexpenses
Incometaxexpensesincludecurrentincometaxanddeferredincometax.Therestcurrentincometaxandthedeferredincometaxexpensesorrevenueshouldbeincludedintocurrentgainsandlossesexceptforthecurrentincometaxandthedeferredincometaxrelatedtothetransactionandeventsthatbeconfirmedasothercomprehensiveincomeorbedirectlyincludedintheshareholders’equitywhichshouldbeincludedinothercomprehensiveincomeorshareholders’equityaswellasthebookvalueforadjustingthegoodwillofthedeferredincometaxoccursfromthebusinesscombination.
(4)Offsetofincometax
ThecurrentincometaxassetsandliabilitiesoftheGroupshouldbelistedbythewritten-off
netamountwhichintendtoexecutesthenetamountsettlementaswellastheassetsacquiringandliabilitiesliquidationatthesametimewhileownsthelegalrightsofsettlingthenetamount.ThedeferredincometaxassetsandliabilitiesoftheGroupshouldbelistedaswritten-offnetamountwhenhavingthelegalrightsofsettlingthecurrentincometaxassetsandliabilitiesbynetamountandthedeferredincometaxandliabilitiesisrelevanttotheincometaxwhichbecollectedfromthesametaxpayingbodiesbythesametaxcollectionandadministrationdepartmentorisrelevanttothedifferenttaxpayingbodiesbutduringeachperiodwhichthereissignificantreverseofthedeferredincomeassetsandliabilitiesinthefutureandamongwhichtheinvolvedtaxpayingbodiesintendtosettlethecurrentincometaxandliabilitiesbynetamountorareatthesametimeacquiretheassetaswellasliquidatetheliabilities.26.LeasingFinancingleasingvirtuallytransferredthewholerisksandleasingofthecompensationrelatedtotheassetsownershipandtheirownershipmayeventuallybetransferredormaybenot.Otherleasingexceptforthefinancingleasingisoperatingleasing.(1)BusinessofoperatingleasesrecordedbytheGroupasthelesseeTherentexpensesfromoperatingleasesshallberecordedbythelesseeintherelevantassetcostsortheprofitsandlossesofthecurrentperiodbyusingthestraight-linemethodovereachperiodoftheleaseterm.Theinitialdirectcostsshallberecognizedastheprofitsandlossesofthecurrentperiod.Thecontingentrentsshallberecordedintotheprofitsandlossesofthecurrentperiodinwhichtheyactuallyarise.(2)BusinessofoperatingleasesrecordedbytheGroupasthelessorTherentincomesfromoperatingleasesshallberecognizedastheprofitsandlossesofthecurrentperiodbyusingthestraight-linemethodovereachperiodoftheleaseterm.Theinitialdirectcostsofgreatamountshallbecapitalizedwhenincurred,andberecordedintocurrentprofitsandlossesinaccordancewiththesamebasisforrecognitionofrentincomesoverthewholeleaseterm.Theinitialdirectcostsofsmallamountshallberecordedintocurrentprofitsandlosseswhenincurred.Thecontingentrentsshallberecordedintotheprofitsandlossesofthecurrentperiodinwhichtheyactuallyarise.(3)BusinessoffinanceleasesrecordedbytheGroupasthelesseeOntheleasebeginningdate,theGroupshallrecordtheloweroneofthefairvalueoftheleasedassetandthepresentvalueoftheminimumleasepaymentsontheleasebeginning
dateastheenteringvalueinanaccount,recognizetheamountoftheminimumleasepaymentsastheenteringvalueinanaccountoflong-termaccountpayable,andtreatthebalancebetweentherecordedamountoftheleasedassetandthelong-termaccountpayableasunrecognizedfinancingcharges.Besides,theinitialdirectcostsdirectlyattributabletotheleaseditemincurredduringtheprocessofleasenegotiatingandsigningtheleasingagreementshallberecordedintheassetvalueofthecurrentperiod.Thebalancethroughdeductingunrecognizedfinancingchargesfromtheminimumleasepaymentsshallberespectivelystatedinlong-termliabilitiesandlong-termliabilitiesduewithin1year.Unrecognizedfinancingchargesshallbeadoptedbytheeffectiveinterestratemethodintheleaseterm,soastocalculateandrecognizecurrentfinancingcharges.Thecontingentrentsshallberecordedintotheprofitsandlossesofthecurrentperiodinwhichtheyactuallyarise.(4)BusinessoffinanceleasesrecordedbytheGroupasthelessorOnthebeginningdateoftheleaseterm,theGroupshallrecognizethesumoftheminimumleasereceiptsontheleasebeginningdateandtheinitialdirectcostsastheenteringvalueinanaccountofthefinancingleasevaluesreceivable,andrecordtheunguaranteedresidualvalueatthesametime.Thebalancebetweenthesumoftheminimumleasereceipts,theinitialdirectcostsandtheunguaranteedresidualvalueandthesumoftheirpresentvaluesshallberecognizedasunrealizedfinancingincome.Thebalancethroughdeductingunrealizedfinancingincomesfromthefinanceleaseaccountsreceivableshallberespectivelystatedinlong-termclaimsandlong-termclaimsduewithin1year.Unrecognizedfinancingincomesshallbeadoptedbytheeffectiveinterestratemethodintheleaseterm,soastocalculateandrecognizecurrentfinancingrevenues.Thecontingentrentsshallberecordedintotheprofitsandlossesofthecurrentperiodinwhichtheyactuallyarise.27.OtherMainAccountingPoliciesandEstimates
(1)Terminationofoperation
TerminationofoperationreferstoaseparatelyidentifiableconstituentpartthatsatisfiesoneofthefollowingconditionsthathasbeendisposedofbytheCompanyorisclassifiedasheld-for-sale:?Thisconstituentpartrepresentsanindependentmainbusinessoraseparatemainbusinessarea;?Thisconstituentpartispartofanassociatedplanthatisintendedtobedisposedofinanindependentmainbusinessoraseparatemajorbusinessarea;?Thisconstituentpartisasubsidiarythatisspecificallyacquiredforresale.Foraccountingmethodofterminationofoperation,pleaserefertorelevantdescriptionof
NotesIV.12“Assetsheldforsaleanddisposalgroup”
(1)HedgingAccounting
Toavoidcertainrisks,theCompanycarriesouthedgingofsomefinancialinstrumentsashedgingtools.TheCompanytreatshedgingthatmeetsspecifiedconditionsusinghedgingaccountingmethod.TheCompany'shedgingisfair-valuehedging,andtreatsthehedgingofforeignexchangeriskwithdefiniteundertakingatfairvalue.Atthebeginningofhedging,theCompanyrecordstherelationshipbetweenhedgingtoolsandhedgeditems,riskmanagementobjectivesandstrategiesfordifferenthedgingtransactions.Inaddition,atthebeginningandafterthehedging,theCompanyconductscontinuousevaluationoftheeffectivenessofhedgingtocheckwhetherthehedgingishighlyeffectiveduringtheaccountingperiodinwhichthehedgingrelationshipisdesignated.Fairvaluehedgingisaqualifiedderivativeinstrumentdesignatedforfairvaluehedging,andthegainsorlossesresultingfromitschangesinfairvalueareincludedinthecurrentprofitsandlosses.Thegainsorlossesofthehedgeditemsduetohedgedrisksarealsoincludedinthecurrentprofitsandlosses,andthebookvalueofthehedgeditemsisalsoadjusted.WhentheCompanycancelsthedesignationofhedgingrelationship,thehedginginstrumentexpiresorissold,thecontractisterminatedorexercised,ortheconditionsarenolongersatisfied,theuseofhedgingaccountingisterminated.28.ChangesinMainAccountingPoliciesandEstimates(1)ChangesofaccountingpoliciesInaccordancewiththeNotesonRevisingandPrintingtheFormatof2018GeneralEnterprisesFinancialStatement(CK[2018]No.15)issuedbytheMinistryofFinance15June2018,theCompanyrevisedtheformatofFinancialStatementsasfollows:
?Balancesheet:theitemsoforiginal“Notesreceivable”and“Accountsreceivable”areincorporatedintotheitemof“Notesandaccountsreceivable”;theitemsoforiginal“Interestreceivable”,“Dividendsreceivable”and“Otherreceivables”areincorporatedintotheitemof“Otherreceivables”;theitemsof“Fixedassets”and“Disposaloffixedassets”areincorporatedintotheitemof“Fixedassets”;theitemsoforiginal“Engineeringmaterial”and“Constructioninprocess”areincorporatedintotheitemof“Constructioninprocess”;theitemsoforiginal“Notespayable”and“Accountspayable”areincorporatedintotheitemof“Notesandaccountspayable”;theitemsoforiginal“Interestpayable”,“Dividendspayable”,and“Otherpayables”areincorporatedintotheitemof“Otherpayables”;theitemsof
original“long-termaccountspayable”and“specificpayable”areincorporatedintotheitemof“long-termaccountspayable”.?IncomeStatement;theitemof“Administrativeexpense”isdividedinto“Administrativeexpense”and“R&Dexpense”tobepresentedandlisted;theitemof“financialcost”inincomestatementaddtheitemsof“interestcost”and“interestincome”tobepresentedandlisted.?StatementsofChangesinOwners’Equity:newlyaddingtheitemof“Changesindefinedbenefitpensionschemestransferredtoretainedearnings”Theitemsof2017financialstatementsafterretroactiveadjustmentareasfollows:
Unit:RMB
| Before | After | ||
| Item | Amount | Item | Amount |
| Notesreceivable | 5,178,668,988.23 | Notesandaccountsreceivable | 8,621,764,935.49 |
| Accountsreceivable | 3,443,095,947.26 | ||
| Interestreceivable | 1,813,256.77 | Otherreceivables | 184,218,356.16 |
| Dividendsreceivable | - | ||
| Otherreceivables | 182,405,099.39 | ||
| Fixedassets | 1,587,170,348.35 | Fixedassets | 1,587,170,348.35 |
| Disposaloffixedassets | - | ||
| Constructioninprocess | 135,863,821.01 | Constructioninprocess | 135,863,821.01 |
| Engineeringmaterial | - | ||
| Notespayable | 541,175,312.09 | Notesandaccountspayable | 4,153,391,578.68 |
| Accountspayable | 3,612,216,266.59 | ||
| Interestpayable | 35,723,963.94 | Otherpayables | 1,644,083,269.81 |
| Dividendspayable | - | ||
| Otherpayables | 1,608,359,305.87 | ||
| Administrativeexpense | 777,713,680.46 | Administrativeexpense | 448,036,697.96 |
| R&Dexpense | 329,676,982.50 | ||
(2)ChangeofaccountingestimatesTherewasnoanychangeofaccountingestimateoftheCompanyintheReportingPeriod.29.CriticalAccountingJudgmentsandEstimatesDuetotheinsideuncertaintyofoperatingactivity,theGroupneededtomakejudgments,
estimatesandassumptiononthebookvalueoftheaccountswithoutaccuratemeasurementduringtheemploymentofaccountingpolicies.Andthesejudgments,estimatesandassumptionweremadebasingonthepriorexperienceoftheseniorexecutivesoftheGroup,aswellasinconsiderationofotherfactors.Thesejudgments,estimatesandassumptionwouldalsoaffectthereportamountofincome,costs,assetsandliabilities,aswellasthedisclosureofcontingentliabilitiesonbalancesheetdate.However,theuncertaintyoftheseestimateswaslikelytocausesignificantadjustmentonthebookvalueoftheaffectedassetsandliabilities.TheGroupwouldcheckperiodicallytheabovejudgments,estimatesandassumptiononthebasisofcontinuingoperation.Forthechangesinaccountingestimatesonlyaffectedonthecurrentperiod,theinfluenceshouldberecognizedattheperiodofchangeoccurred;forthechangesinaccountingestimatesaffectedthecurrentperiodandalsothefutureperiod,theinfluenceshouldberecognizedattheperiodofchangeoccurredandfutureperiod.Onthebalancesheetdate,theGroupneededtomakejudgments,estimatesandassumptionontheaccountsinthefollowingimportantitems:
(1)RevenueRecognition-ConstructionContractIftheconstructioncontractresultscanbereliablyestimated,theCompanyadoptsthemethodofcompletionpercentagetoconfirmthecontractincomeonthebalancesheetdate.ThepercentageofcontractcompletionisconfirmedinaccordancewiththemethoddescribedinNoteIV,233,Revenue,andiscumulativelycalculatedineachfiscalyearinwhicheachconstructioncontractisexecuted.Significantjudgmentisrequiredindeterminingthepercentageofcompletion,contractcostsincurred,estimatedtotalcontractincomeandtotalcost,andcontractrecyclability,andtheprojectmanagementpersonnelusuallymakejudgmentsmainlybasedonpastexperienceandwork.Theestimatedtotalcontractincomeandtotalcost,aswellasestimatedchangesincontractexecutionresults,mayhaveanimpactonoperatingincome,operatingcosts,andprofitorlossforthecurrentorsubsequentperiodofthechange,andmayhaveasignificantimpact.
(2)Categorizationofleasing
InaccordancewithAccountingStandardsforEnterprisesNo.21–Leasing,theGroupcategorizedtheleasingintooperatingleaseandfinancelease.Duringthecategorization,themanagementlevelneededtomakeanalysisandjudgmentonwhetheralltheriskand
compensationrelatedwiththeleasedassetshadbeentransferredtotheleasee,orwhethertheGrouphadalreadyundertakenalltheriskandcompensationrelatedwiththeleasedassets.
(3)Provisionforbaddebts
Inaccordancewiththeaccountingpoliciesofaccountsreceivable,theGroupmeasuredthelossesforbaddebtsbyadoptingallowancemethod.Theimpairmentofaccountsreceivablewasbasedontheappraisaloftherecoverabilityofaccountsreceivable.Theimpairmentofaccountsreceivablewasdependentonthejudgmentandestimates.Theactualamountandthedifferenceofpreviousestimateswouldaffectthebookvalueofaccountsreceivableandthewithdrawalandreversalonprovisionforbaddebtsofaccountsreceivableduringtheperiodofestimatesbeingchanged.(4)ProvisionforfallingpriceofinventoriesInaccordancewiththeaccountingpoliciesofinventories,fortheinventoriesthatthecostsweremorethanthenetrealizablevalueaswellasout-of-dateanddull-saleinventories,theGroupwithdrawntheprovisionforfallingpriceofinventoriesontheloweronebetweencostsandnetrealizablevalue.Evaluatingthefallingpriceofinventoriesneededthemanagementlevelgainthevalidevidenceandtakefullconsiderationofthepurposeofinventories,influenceofeventsafterbalancesheetdateandotherfactors,andthenmaderelevantjudgmentsandestimates.Theactualamountandthedifferenceofpreviousestimateswouldaffectthebookvalueofinventoriesandthewithdrawalandreversalonprovisionforbaddebtsofinventoriesduringtheperiodofestimatesbeingchanged.(5)ThefairvalueoffinancialinstrumentForthefinancialinstrumentswithoutactivemarket,theGrouprecognizedthefairvaluebyvariousmethods.Theseevaluationmethodsincludeddiscountedcashflowmodeanalysis,etc.TheGroupneededtoestimatethefuturecashflow,creditrisk,fluctuationrateofmarketandrelativityandotherfactors,aswellaschoosethepropertydiscountrate.Duetotheuncertaintyofrelevantassumptions,sotheirchangeswouldaffectthefairvalueoffinancialinstrument.(6)Held-to-maturityinvestmentsTheCompanyclassifiesthenon-derivativefinancialassetwithafixedordeterminableamountofrepoprice,andafixeddateofmaturity,whichtheenterpriseholdsforadefinitepurposeortheenterpriseisabletoholduntilitsmaturity,toheld-to-maturityinvestment.
Suchclassificationconcernslotsofjudgments.Duringthejudgmentprocess,theCompanywillassessthepurposeandcapabilityforholdingsuchkindofinvestmenttomaturity.Exceptforspecialcases(forexample,sellinginvestmentwithno-largeamountwhenthematuritydateiscloselytocome),iftheCompanycan’tholdtheinvestmenttomaturitydate,theCompanyshouldre-classifyallthatinvestmenttoavailable-for-salefinancialassets,andshouldn’tclassifythosefinancialassetsintohold-to-maturityinvestmentinthecurrentfiscalyearandthenexttwocompletefiscalyears.Suchcasesmayhavesignificantimpactonrelatedfinancialassetsvaluestatedinfinancialstatements,andmayinfluencetheriskmanagementstrategyforfinancialtoolsoftheCompany.(7)Impairmentofheld-to-maturityinvestmentThedecisionaboutconfirmingtheimpairmentoftheinvestmentheld-to-maturitybytheCompanydependsonthejudgmentofthemanagementlayertoagreatextent.Theobjectiveevidencesoftheoccurrenceoftheimpairmentincludethereisseriousfinancialdifficultiesoftheissuerwhichleadthefinancialassetscouldnotbecontinuedtodealintheactivemarketandcouldnotexecutetheclausesofthecontracts(forexample,topayfortheinterestsortheprincipaloccursdefault)andsoon.Whenexecutingthejudgment,theCompanyshouldassesstheinfluencesoftheobjectiveevidencesoftheoccurrenceoftheimpairmentontheestimatedfuturecashflowoftheinvestment.(8)TheimpairmentoffinancialassetsavailableforsaleTheGroupjudgedwhetherthefinancialassetsavailableforsalewereimpairedrelyingheavilyonthejudgmentandassumptionofthemanagementteam,soastodecidewhetherrecognizedtheimpairmentlossesintheincomestatement.Duringtheprocessofmakingthejudgmentandassumption,theGroupneededtoappraisethebalanceofthecostoftheinvestmentexceedingitsfairvalueandthecontinuousperiod,thefinancialstatusandbusinessforecastinashortperiod,includingtheindustrialsituation,technicalreform,creditlevel,defaultrateandriskofcounterparty.(9)Provisionforimpairmentoflong-termassetsTheGroupmadeajudgmentonthenon-currentassetsotherthanfinancialassetswhethertheyhadanyindicationofimpairmentonthebalancesheetdate.Fortheintangibleassetswithoutfiniteservicelife,otherthantheannualimpairmenttest,theyshouldbesubjecttotheimpairmenttestwhentherewasanyindicationofimpairment.Forothernon-current
non-financialassets,whichshouldbesubjectedtoimpairmenttestwhentherewasindicationofimpairmentindicatedthatthebookvaluecan’tberecoverable.Whenthebookvalueoftheassetsorassetsportfoliowasmorethantherecoverableamount,whichwasthehigheronebetweenthenetamountoffairvalueafterdeductingthedisposalexpensesandthediscountedamountoftheestimatedfuturecashflow,itmeansimpairmentincurred.Thenetamountoffairvalueafterdeductingthedisposalexpensesshouldbefixedthepriceinthesaleagreementforsimilarassetsinthefairtransactionminustheincreasedcostsdirectlyattributabletotheassetsdisposal.Whenestimatedthediscountedvalueoffuturecashflow,theGroupneededtomakeimportantjudgmentontheoutput,sellingprice,relevantcostsandthediscountrateforcalculatingthediscountedamount,etc.Whenestimatedtherecoverableamount,theGroupwouldadoptalltheavailabledocuments,includingthepredictionforrelevantoutput,sellingpriceandrelevantoperatingcostsarisingfromreasonableandsupportiveassumptions.TheGroupmadetheimpairmenttestongoodwillatleastonetimeperyear,whichrequiredtopredictthediscountedamountofthefuturecashflowoftheassetsorassetsportfoliowiththedistributedgoodwill,forwhich,theGroupneededtopredictthefuturecashflowoftheassetsorassetsportfolio,andadoptthepropertydiscountedratetodecidethediscountedamountoffuturecashflow.(10)DepreciationandamortizationFortheinvestmentrealestate,fixedassetsandintangibleassets,theGroupwithdrewthedepreciationandamortizationbyadoptingthestraight-linemethodduringtheservicelifeafterfullconsiderationofthesalvagevalue.TheGroupcheckedtheservicelifeperiodicallysoastodecidetheamountofdepreciationandamortizationateachReportingPeriod.TheservicelifewasfixedbytheGroupinaccordancewiththepreviousexperienceofthesimilarassetsandtheexpectedtechnicalupdate.Iftherewasanysignificantchangeonthepreviousestimates,thedepreciationandamortizationexpensesshouldbeadjusted.
(11)Deferredincometaxassets
Withinthelimitthatitwaslikelytohavesufficienttaxableprofitstooffsetthelosses,theGrouprecognizedthedeferredincometaxassetsbyalltheunusedtaxlosses,whichneededthemanagementleveloftheGrouptoestimatetimeandamountofthefuturetaxableprofitsincurredwithmanyjudgments,aswellasintegratestrategyoftaxpayment,todecidethe
amountofdeferredincometaxassetswhichshouldberecognized.
(12)Incometax
Duringtheroutineoperatingactivities,thereweresomeuncertaintyintheultimatetaxtreatmentandcalculationforpartsoftransactions.Someaccountsofsuchtransactioncouldbelistedaspre-taxexpendituresonlyaftertheapprovaloftaxationauthorities.Iftherewereanydifferencesbetweentheultimateresultofrecognitionforthesetaxationmatersandtheirinitialestimates,thedifferenceswouldaffectthecurrentincometaxanddeferredincometaxattheperiodofultimaterecognition.(13)InternalearlyretirementwelfareandsupplementaryretirementwelfareAmountsofexpendituresandliabilitiesofinternalearlyretirementwelfareandsupplementaryretirementwelfareshouldbedeterminedaccordingtoassumptionterms.Assumptiontermsincludediscountrate,averagegrowthrateofmedicalcosts,growthrateofsubsidiesforearlyretirementemployeesandretireesandotherfactors.Thedifferencesofactualresultsandassumptionshouldbeconfirmedimmediatelyandincludedintocostsofcurrentyear.Althoughthemanagementhaveadoptedreasonableassumptionterms,changesofactualexperiencevalueandassumptiontermsmayaffecttheinternalearlyretirementwelfare,supplementaryretirementbenefitsandbalanceofliabilities.
(14)Estimatedliabilities
TheGroupmadetheestimationonproductqualityguarantee,predictedlossofcontractandthefinefordelayeddeliveryetc.andwithdrewtherelevantprovisionforestimatedliabilitiesinaccordancetheprovisionsofcontract,currentknowledgeandexperience.UndertheconditionthatthecontingenteventhasformedacurrentdutyandfulfillingthedutyislikelytocausetheeconomicalinterestoutflowtheGroup,theGroupmeasurestheestimatedliabilitiesinaccordancewiththebestestimateofthenecessaryexpensesfortheperformanceofthecurrentduty.Therecognitionandmeasurementofestimatedliabilitieswereheavilyreliedonthejudgmentofthemanagementteam.Duringtheprocessofmakingjudgment,theGroupneededtoappraisetherelevantrisks,uncertaintyandthetimevalueofmoneyandetc.Ofwhich,theGroupestimatedtheliabilitiesbasingontheafter-saleservicescommitmentstothecustomersuponthesale,repairandreformofgoods.Whenestimatingtheliabilities,theGrouphasfullytakentheconsiderationofthelatestrepairexperience,butwhichmaynotreflecttherepairsituationinthefuture.Anyincrease/decreaseoftheprovisionforestimated
liabilitiesmayaffecttheprofitsandlossesinthefutureperiods.
(15)Measurementforfairvalue
SomeassetsandliabilitiesofthisCompanywillbemeasuredatfairvalueinthefinancialstatements.TheboardofdirectorsofthisCompanyhasestablishedtheappraisementcommittee(ledbytheCFOofthisCompany)toconfirmappropriateappraisementtechnologyandinputvalueformeasurementoffairvalue.ThisCompanywillapplyavailableandobservablemarketdataduringestimatingthefairvalueofsomeassetsandliabilities.IftheinputvalueinLevel1isnotavailable,thisCompanywillentrustathirdqualifiedappraiserfortheestimation.Theappraisementcommitteewillcloselycooperatewiththeoutsideappraisertodetermineproperestimationtechnologyandinputvaluesoftherelatedmodels.CFOsubmitsareporttothediscoveriesoftheappraisementcommitteetotheboardofdirectorsofthisCompanytoexplainthereasonsoffluctuationoffairvalueofrelatedassetsandliabilities.RelatedinformationoftheappraisementtechnologyandinputvalueduringtheprocessofconfirmingthefairvalueofvariousassetsandliabilitiesshallbedisclosedinNoteX.V.Taxation1.MainTaxesandTaxRate
| Categoryoftaxes | Specificsituationofthetaxesrate |
| VAT | Calculatedtheoutputtaxat3%,5%,6%,10%,11%,13%,16%,17%andpaidtheVATbytheamountafterdeductingthedeductiblewithholdingVATatcurrentperiod,ofwhichtheVATapplicabletoeasycollectionwon’tbelongtothedeductiblewithholdingVAT. |
| Urbanmaintenanceandconstructiontax | Paidat7%ofthecirculatingtaxactuallypaid,ofwhichDongguanPacking,DongguanKonka,BoluoKonka,BoluoKonkaPrecision,andChengduAnrenof5%. |
| Enterpriseincometax | ForHongKongKonka,KonkaHouseholdAppliancesInvestment,KonkaHouseholdAppliancesInternationalTrading,KonkaZhisheng,JialiInternational,JiaxinTechnology,KangjietongandChainKingdomwhoseassessableprofitdidnotexceedHKD2,000,000.00,theypaidat8.25%,andiftheirassessableprofitexceededHKD2,000,000.00,theypaidat16.5%;AnhuiKonka,E-display,BoluoKonkaPrecision,TelecommunicationTechnology,Wankaida,JiangxiKonka,XinfengMicrocrystalline,NanoCrystallizedGlass,CommercialSystemTechnology,DongguanKonka,EconTechnology,E2info,XingDaHongYeandKangqiaoEasyChainof15%;andEuropeKonkaof31.8%.TheCompanyastheparentandtheothersubsidiariespaidat25%ofthetaxableincome. |
Note:(1)TheoriginaltaxrateappliedbytheCompanyonVATtaxablesalesorimportedgoodswas17%/11%.AccordingtotheCircularoftheMinistryofFinanceandtheStateAdministrationofTaxationontheAdjustmentofVATTaxRate(CS[2018]No.32),theapplicabletaxrateisadjustedto16%/10%,beingeffectivefrom1May2018.(2)InaccordancewiththeNoticeonPrintingtheAdministrationMethodonChargingandUseoftheTreatmentFundsofDiscardedElectronicApplianceandElectricProductsissuedbytheMinistryofFinance,MinistryofEnvironmentalProtection,NationalDevelopmentandReformCommission,MinistryofIndustryandInformation,GeneralAdministrationofCustomsandNationalTaxationBureau(CZ[2012]No.34),andtheAdministrationMethodonChargingandUseoftheTreatmentFundsofDiscardedElectronicApplianceandElectricProductsissuedbyNationalTaxationBureau(GJSWZJGG[2012]No.41),thedomesticmanufactureroftheelectricalappliancesandelectronicproductsofPRCstartedtopaythetreatmentfundsfordiscardedelectricalapplianceandelectronicproductsaccordingthesalesvolume(trustedprocessingamount)andrelevantchargingstandardsfrom1July2012.Accordingtotheregulations,theGroup’schargingstandardswereRMB13persetofTV,RMB12persetofrefrigeratorandRMB7persetofwashingmachine.(3)AccordingtoregulationsofTemporaryProvisionsofIncomeTaxofTrans-boundaryTaxPaymentEnterprisesbyStateAdministrationofTaxation,residententerpriseswithoutbusinessestablishmentorplacesoflegalpersonsshouldbetaxpaymententerpriseswiththeadministrativemeasuresofincometaxof“unifiedcomputing,level-to-leveladministration,localprepayment,liquidationsummary,andfinancetransfer”.Itcameintoforcefrom1January2008.Accordingtotheabovemethods,theCompany’ssalesbranchcompaniesineachareawillhandinthecorporateincometaxesinadvancefrom1January2008andwillbefinalsettleduniformlybytheCompanyattheyear-end.2.TaxPreferenceandApprovedDocuments(1)On21October2016,thesubsidiaryoftheCompany,AnhuiKonkaacquiredthecertificateofhigh-technologyenterprisesjointissuedbyAnhuiProvinceScienceandTechnologyDepartment,DepartmentofFinanceofAnhuiProvince,AnhuiProvincialOffice,SAT,andAnhuiLocalTaxationBureauwiththecertificationnumberofGR201634000520andthevalidityofthreeyears.Accordingtotherelevanttaxationregulations,theAnhuiKonkacouldenjoytherelevantpreferentialtaxpolicyonthehigh-techenterprisefor
| Educationsurtax | Paidat3%ofthecirculatingtaxactuallypaid. |
| Localeducationsurtax | Paidat2%ofthecirculatingtaxactuallypaid.ShanghaiKonkapaidat1%. |
continuous3yearsfrom2016to2018,andpayforthecorporateincometaxaccordingto15%ofthepreferentialtaxrate.(2)On21November2016,thesubsidiaryoftheCompany,KonkaE-displayacquiredthecertificateofhigh-technologyenterprisesjointissuedbyShenzhenScienceandTechnologyInnovationCommittee,FinanceCommissionofShenzhenMunicipality,ShenzhenMunicipalOffice,SAT,andShenzhenLocalTaxationBureauwiththecertificationnumberofGR201644201332andthevalidityofthreeyears.Accordingtotherelevanttaxationregulations,theKonkaE-displaycouldenjoytherelevantpreferentialtaxpolicyonthehigh-techenterpriseforcontinuous3yearsfrom2016to2018,andpayforthecorporateincometaxaccordingto15%ofthepreferentialtaxrate.(3)On30November2016,BoluoKonkaPrecisionTechnologyCo.,Ltd.,thesubsidiaryofthisCompanyobtainedtheHigh-techEnterpriseCertificate(certificateNo.:
GR201644001388)jointlyissuedbyDepartmentofScienceandTechnologyofGuangdongProvince,DepartmentofFinanceofGuangdongProvince,GuangdongProvincialOffice,SAT,GuangdongLocalTaxationBureauwithavalidperiodofthreeyears.Accordingtorelatedtaxationregulations,thecompanyenjoysrelatedtaxationpreferentialpoliciesasahigh-techenterprisefrom2016to2018andpaystheenterpriseincometaxasperthepreferentialtaxrateof15%.(4)On15August2017,ShenzhenKonkaTelecommunicationsTechnologyCo.,Ltd.,thesubsidiaryofthisCompanyobtainedthehigh-techenterprisecertificate(certificateNo.:
SZ20170142)jointlyissuedbyShenzhenTechnologyInnovationCommittee,FinanceCommissionofShenzhenMunicipality,ShenzhenMunicipalOffice,SAT,ShenzhenLocalTaxationBureau,withavalidperiodofthreeyears.Accordingtorelatedtaxationregulations,ShenzhenKonkaTelecommunicationsTechnologyCo.,Ltd.enjoysrelatedtaxationpreferentialpoliciesasahigh-techenterprisefrom2017to2019andpaystheenterpriseincometaxasperthepreferentialtaxrateof15%.(5)On31October2017,Wankaida,thesubsidiaryofthisCompanyobtainedtheHigh-techEnterpriseCertificate(certificateNo.:GR201744204716)jointissuedbyShenzhenTechnologyInnovationCommittee,FinanceCommitteeofShenzhenMunicipality,ShenzhenMunicipalOffice,SATandShenzhenLocalTaxationBureauwithavalidperiodofthreeyears.Accordingtorelatedtaxationregulations,Wankaidaenjoysrelatedtaxationpreferentialpoliciesasahigh-techenterprisefrom2017to2019andpaystheenterpriseincometaxasperthereferentialtaxrateof15%.
(6)On23August2017,JiangxiKonkaNewMaterialTechnologyCo.,Ltd.,thesubsidiaryofthisCompanyobtainedtheHigh-techEnterpriseCertificate(certificateNo.:
GR201736000497)jointlyissuedbyDepartmentofScienceandTechnologyofJiangxiProvince,DepartmentofFinanceofJiangxiProvince,JiangxiProvincialOffice,SAT,JiangxiLocalTaxationBureauwithavalidperiodofthreeyears.Accordingtorelatedtaxationregulations,thecompanyenjoysrelatedtaxationpreferentialpoliciesasahigh-techenterprisefrom2017to2019andpaystheenterpriseincometaxasperthepreferentialtaxrateof15%.(7)On23August2017,JiangxiGoldenPhoenixNanoCrystallizedGlassCo.,Ltd.,thesubsidiaryofJiangxiKonkaobtainedtheHigh-techEnterpriseCertificate(certificateNo.:
GR201736000110)jointlyissuedbyDepartmentofScienceandTechnologyofJiangxiProvince,DepartmentofFinanceofJiangxiProvince,JiangxiProvincialOffice,SAT,JiangxiLocalTaxationBureauwithavalidperiodofthreeyears.Accordingtorelatedtaxationregulations,thecompanyenjoysrelatedtaxationpreferentialpoliciesasahigh-techenterprisefrom2017to2019andpaystheenterpriseincometaxasperthepreferentialtaxrateof15%.(8)On15November2016,JiangxiXinfengMicrocrystallineJadeCo.,LtdthesubsidiaryofJiangxiKonkaobtainedtheHigh-techEnterpriseCertificate(certificateNo.:
GR201636000487)jointlyissuedbyDepartmentofScienceandTechnologyofJiangxiProvince,DepartmentofFinanceofJiangxiProvince,JiangxiProvincialOffice,SAT,JiangxiLocalTaxationBureauwithavalidperiodofthreeyears.Accordingtorelatedtaxationregulations,thecompanyenjoysrelatedtaxationpreferentialpoliciesasahigh-techenterprisefrom2016to2018andpaystheenterpriseincometaxasperthepreferentialtaxrateof15%.(9)On31October2017,ShenzhenKonkaCommercialSystemTechnologyCo.,Ltd.,thesubsidiaryofthisCompanyobtainedthehigh-techenterprisecertificate(certificateNo.:
GR201744202349)jointlyissuedbyShenzhenTechnologyInnovationCommittee,FinanceCommitteeofShenzhenMunicipality,ShenzhenMunicipalOffice,SAT,ShenzhenLocalTaxationBureauwithavalidperiodofthreeyears.Accordingtorelatedtaxationregulations,thecompanyenjoysrelatedtaxationpreferentialpoliciesasahigh-techenterprisefrom2017to2019andpaystheenterpriseincometaxasperthepreferentialtaxrateof15%.(10)On1November2017,DongguanKonkaElectronicCo.,Ltd.,thesubsidiaryofthisCompanyobtainedtheHigh-techEnterpriseCertificate(certificateNo.:GR201744003812)
jointlyissuedbyDepartmentofScienceandTechnologyofGuangdongProvince,DepartmentofFinanceofGuangdongProvince,GuangdongProvincialOffice,SAT,GuangdongLocalTaxationBureauwithavalidperiodofthreeyears.Accordingtorelatedtaxationregulations,thecompanyenjoysrelatedtaxationpreferentialpoliciesasahigh-techenterprisefrom2017to2019andpaystheenterpriseincometaxasperthepreferentialtaxrateof15%.(11)On28December2017,EconTechnology,asubsidiaryoftheCompany,obtainedtheHigh-techEnterpriseCertificate(certificateNo.:GR201737001495)jointlyissuedbyDepartmentofScienceandTechnologyofShangdongProvince,DepartmentofFinanceofShangdongProvince,ShangdongProvincialOffice,SAT,ShangdongLocalTaxationBureauwithavalidperiodofthreeyears.Accordingtotherelevanttaxregulations,thecompanyenjoysrelatedtaxincentivesforhigh-techcompaniesforthreeconsecutiveyearsfrom2017to2019,andissubjecttocorporateincometaxatapreferentialrateof15%.(12)On16October2018,ShenzhenE2infoNetworkTechnologyCo.,Ltd.,thesubsidiaryofthisCompanyobtainedthehigh-techenterprisecertificate(certificateNo.:
GR201844201969)jointlyissuedbyShenzhenTechnologyInnovationCommittee,FinanceCommitteeofShenzhenMunicipality,ShenzhenTaxationBureauofSATwithavalidperiodofthreeyears.Accordingtorelatedtaxationregulations,thecompanyenjoysrelatedtaxationpreferentialpoliciesasahigh-techenterprisefrom2018to2020andpaystheenterpriseincometaxasperthepreferentialtaxrateof15%.(13)On28November2018,GuangDongXingDaHongYeElectronicCo.,Ltd.,thesubsidiaryofthisCompany,waslistedintheSecondBatchofNameListofProposedHi-techEnterpriseinGuangdongProvinceforY2018publishedbytheNationalLeadingGroupOfficefortheManagementofHigh-techEnterprisesRecognition,whichhasagreatpossibilityofgettingthehigh-techenterprisecertificate.Thecompanyshallpaytheenterpriseincometaxasperthepreferentialtaxrateof15%.
(14)AccordingtotheOverallDevelopmentPlanonShenzhen-HongKongCooperationonModernServiceIndustriesinQianhaiAreaapprovedbytheStateCouncilandtheIndustryAccessCatalogueofModernServiceIndustryinQianhai,ShenzhenissuedbytheNationalDevelopmentandReformCommission,ShenzhenKangqiaoEasyChainTechnologyCo.,Ltd.,asubsidiaryoftheCompanywasestablishedinQianhai,andenjoyeda15%incometaxrate,andtheprivilegesinQianhaicanbesuperimposedwithothers.(15)AccordingtotheNoticeonPromotingtheDevelopmentofVAT,BusinessTaxand
EnterpriseIncomeTaxPolicyforEnergy-SavingServiceIndustryissuedbytheMinistryofFinanceandtheStateAdministrationofTaxation(FinanceandTaxation[2010]No.110),LairunHoldingsenjoysthepreferentialpolicyoftaxexemptionsforthreeyearsandhalvedinnextthreeyears.LairunHoldingswasregisteredandrecordedin12April2018inLaizhouTaxationBureauofShandongProvince.(16)Accordingtothefiscalandtaxationdocument[2011]No.100publishedbytheMinistryofFinanceandtheStateAdministrationofTaxation,fortheVATgeneraltaxpayerswhoselltheirself-developedandproducedsoftwareproducts,theVATshallbeleviedattherateof17%,andthenthepartthattheactualtaxburdenontheirVATexceeds3willbeimplementedwiththepolicyofimmediatewithdrawal.TheCompanyanditssubsidiaries,TelecommunicationTechnology,WankaidaTechnology,E-displayServiceandElectronicsTechnologyallenjoythispreferentialpolicy.(17)AccordingtotheregulationsoftheSpecialCatalogueofVATConcessionsforProductsandLaborswithComprehensiveUtilizationofResourcesissuedbytheMinistryofFinanceandtheStateAdministrationofTaxation(FinanceandTaxation[2015]No.78),thewastewatertreatmentbusinessoperatedbyLairunHoldings,asubsidiaryofEconTechnology,belongstothethiscatalogue.ThenafterithasbeenleviedtheVATatarateof17%,theactualtaxburdenonthewastewatertreatmentincometaxwillberefundedinaccordancewiththe70%oftheactualtaxburden,andtheactualtaxburdenontherenewablewaterincomeVATwillberefundedimmediatelyat50%.ThatLairunHoldingsenjoyedthetaxconcessionwasregisteredandrecordedin25August2017inLaizhouTaxationBureauofShandongProvince.VI.NotesonMajorItemsinConsolidatedFinancialStatementsoftheCompanyUnlessotherwisenoted,thefollowingannotationproject(includingthemainprojects，annotationofthefinancialstatementoftheCompany),theperiod-beginrefersto1January2018,theperiod-endrefersto31December2018andthisperiodreferstoY2018withthelastperiodofY2017.1.MonetaryFunds
| Item | Endingbalance | Beginningbalance |
| Cashonhand | 130,105.31 | 49,343.08 |
| Bankdeposits | 3,440,007,099.2 | 3,097,850,360.68 |
| Othermonetaryfunds | 908,006,925.02 | 114,145,147.32 |
| Total | 4,348,144,129.53 | 3,212,044,851.08 |
| Ofwhich:totalamountdepositedinoverseas | 518,005,414.06 | 528,061,190.55 |
| Notes:?Theendingbalanceofothermonetaryfundwasthedepositsofeachmargindepositnotwithdrawnatanytime.?Asof31December2018,themonetaryfundsdepositedinoverseasbytheCompanywasRMB518,005,414.06(RMB535,621,931.96on31December2017) | ||
2.FinancialAssetsatFairValuethroughProfitorLoss
| Item | Endingbalance | Beginningbalance |
| forwardexchangecontractincome | 5,464,984.92 | 296,799.53 |
| Total | 5,464,984.92 | 296,799.53 |
3.NotesandAccountsReceivable
| Item | Endingbalance | Beginningbalance |
| Notesreceivable | 3,329,711,954.15 | 5,178,668,988.23 |
| Accountsreceivable | 4,458,053,586.42 | 3,443,095,947.26 |
| Total | 7,787,765,540.57 | 8,621,764,935.49 |
(1)NotesReceivable
?NotesReceivableListedbyCategory
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebill | 2,507,070,633.02 | 3,324,023,541.23 |
| Commercialacceptancebill | 822,641,321.13 | 1,854,645,447.00 |
| Total | 3,329,711,954.15 | 5,178,668,988.23 |
?NotesReceivablePledgedbytheCompanyatthePeriod-end
| Item | Amount |
| Bankacceptancebill | 1,320,095,737.06 |
| Commercialacceptancebill | 1,359,122.95 |
| Total | 1,321,454,860.01 |
?NotesReceivablewhichHadEndorsedbytheCompanyorhadDiscountedandhadnotDueontheBalanceSheetDateatthePeriod-end
| Item | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bankacceptancebill | 4,639,449,373.06 | |
| Commercialacceptancebill | 64,349,424.18 |
| Item | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Total | 4,703,798,797.24 |
?NotesTransferredtoAccountsReceivablebecauseDraweroftheNotesFailedtoExecutetheContractorAgreement
| Item | Amountofthenotestransferredtoaccountsreceivableattheperiod-end |
| Bankacceptancebill | |
| Commercialacceptancebill | 940,027,889.84 |
| Total | 940,027,889.84 |
(2)AccountsReceivable
?AccountsReceivableClassifiedbyCategory
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion | Amount | Withdrawalproportion | ||
| Accountsreceivablewithsignificantindividualamountandmakeindependentprovisionforbaddebt | 964,449,440.20 | 19.79 | 85,924,060.45 | 8.91 | 878,525,379.75 |
| Accountsreceivablewithdrawnbaddebtprovisionaccordingtocreditriskscharacteristics | |||||
| Group1:aginggroup | 3,833,070,919.30 | 78.66 | 275,332,151.06 | 7.18 | 3,557,738,768.24 |
| Subtotalofgroups | 3,833,070,919.30 | 78.66 | 275,332,151.06 | 7.18 | 3,557,738,768.24 |
| Accountsreceivablewithinsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 75,459,154.80 | 1.55 | 53,669,716.37 | 71.12 | 21,789,438.43 |
| Total | 4,872,979,514.30 | 100.00 | 414,925,927.88 | 8.51 | 4,458,053,586.42 |
(Continued)
| Category | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion | Amount | Withdrawalproportion | ||
| Accountsreceivablewithsignificantindividualamountandmakeindependentprovisionforbaddebt | 23,250,858.84 | 0.62 | 23,250,858.84 | 100.00 | — |
| Accountsreceivablewithdrawnbaddebtprovisionaccordingtocreditriskscharacteristics | --- | --- | --- | --- | --- |
| Group1:aginggroup | 3,664,952,156.09 | 97.62 | 241,524,112.19 | 6.59 | 3,423,428,043.90 |
| Subtotalofgroups | 3,664,952,156.09 | 97.62 | 241,524,112.19 | 6.59 | 3,423,428,043.90 |
| Accountsreceivablewithinsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 65,920,181.32 | 1.76 | 46,252,277.96 | 70.16 | 19,667,903.36 |
| Total | 3,754,123,196.25 | 100.00 | 311,027,248.99 | 8.28 | 3,443,095,947.26 |
A.Accountsreceivablewithsignificantindividualamountandmakeindependentprovisionforbaddebtattheperiod-end
| Accountsreceivable(classifiedbyunits) | Endingbalance | |||
| Accountreceivable | Baddebtprovision | Withdrawalproportion(%) | WithdrawalReason | |
| ShanghaiHuaxinInternationalGroupCo.,Ltd | 300,027,889.84 | 27,002,510.09 | 9.00 | Difficulttorecoverall |
| HitekerSanPowerHigh-techCo.,Ltd | 200,000,000.00 | 10,000,000.00 | 5.00 | Difficulttorecoverall |
| YizhongEnergyInternationalLogisticsGroupCo.,Ltd | 130,000,000.00 | 6,500,000.00 | 5.00 | Difficulttorecoverall |
| ElionResourcesGroupCo.,Ltd | 120,000,000.00 | 6,000,000.00 | 5.00 | Difficulttorecoverall |
| ChinaNuclearEngineeringConstructionGroupCo.,Ltd | 90,000,000.00 | 4,500,000.00 | 5.00 | Difficulttorecoverall |
| TahoeGroupCo.Ltd | 50,000,000.00 | 2,500,000.00 | 5.00 | Difficulttorecoverall |
| ChinaEnergyElectricFuelCo.,Ltd | 50,000,000.00 | 5,000,000.00 | 10.00 | Difficulttorecoverall |
| DSCHOLDINGSLIMITED | 24,421,550.36 | 24,421,550.36 | 100.00 | Difficulttorecoverall |
| Total | 964,449,440.20 | 85,924,060.45 | — | --- |
B.Topfiveofaccountreceivablewithinsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued
| Accountsreceivable(classifiedbyunits) | Endingbalance | |||
| Accountreceivable | Baddebtprovision | Withdrawalproportion(%) | WithdrawalReason | |
| H-BUSTERDOBRASILINDUSTRIA | 18,875,942.72 | 18,875,942.72 | 100.00 | Difficulttorecoverall |
| TREEVIEWBUSINESSREGITER | 11,801,034.50 | 1,341,891.83 | 11.37 | Difficulttorecoverall |
| HENANBROADCAST&TELEVISIONNETWORKCO.,LTD. | 4,580,000.00 | 1,374,000.00 | 30.00 | Difficulttorecoverall |
| HILEVELCONSUMERITALIAS.P.A | 3,543,056.03 | 3,543,056.03 | 100.00 | Difficulttorecoverall |
| XINJIANGUYGURAUTONOMOUSREGIONBROADCASTFILM&TELEVISIONBUREAU | 1,708,054.00 | 546,577.28 | 32.00 | Difficulttorecoverall |
| Total | 40,508,087.25 | 25,681,467.86 | --- | --- |
C.Inthegroups,accountsreceivableadoptingaginganalysismethodtowithdrawbaddebtprovision:
| Aging | Endingbalance | ||
| Accountreceivable | Baddebtprovision | Withdrawalproportion(%) | |
| Aging | Endingbalance | ||
| Accountreceivable | Baddebtprovision | Withdrawalproportion(%) | |
| Within1year | 3,394,733,686.71 | 80,508,855.01 | 2.37 |
| 1to2years | 251,520,114.19 | 20,648,490.82 | 8.21 |
| 2to3years | 4,459,922.55 | 1,104,904.60 | 24.77 |
| 3to4years | 18,380,302.26 | 9,190,151.14 | 50.00 |
| 4to5years | 196,721.54 | 99,577.45 | 50.62 |
| Over5years | 163,780,172.05 | 163,780,172.05 | 100.00 |
| Total | 3,833,070,919.30 | 275,332,151.06 | |
?AccountsReceivableWithdraw,ReversedorCollectedduringtheReportingPeriodThewithdrawalamountofthebaddebtprovisionduringtheReportingPeriodwasofRMB97,556,693.52,andtheincreasedamountofbaddebtprovisionduetocombinationwasofRMB24,919,241.85;theamountofthereversedorcollectedpartduringtheReportingPeriodwasofRMB13,371,164.31.ThedecreasedamountwasRMB5,206,092.17duetothelossofcontrollingrightofsubsidiaries.?Top5oftheEndingBalanceoftheAccountsReceivableCollectedaccordingtotheArrearsPartyThetotalamountoftopfiveofaccountreceivableofendingbalancecollectedbyarrearspartywasRMB1,321,080,092.52,accountingfor27.11%oftotalclosingbalanceofaccountreceivable,therelevantendingbalanceofbaddebtprovisionwithdrawnwasRMB62,512,522.50.4.Prepayments
(1)ListbyAgingAnalysis
| Aging | Endingamount | Beginningamount | ||||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | |||
| Amount | Proportion(%) | Amount | Proportion(%) | |||
| Within1year | 1,029,600,745.72 | 98.97 | 57,459.57 | 466,156,792.72 | 99.06 | 175,964.90 |
| Aging | Endingamount | Beginningamount | ||||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | |||
| Amount | Proportion(%) | Amount | Proportion(%) | |||
| 1to2years | 7,171,926.78 | 0.69 | 435,914.85 | 1,199,279.69 | 0.25 | 565,892.65 |
| 2to3years | 543,662.41 | 0.05 | --- | 23,736.73 | 0.01 | --- |
| Over3years | 3,034,224.15 | 0.29 | 2,878,017.08 | 3,208,755.30 | 0.68 | 2,723,615.15 |
| Total | 1,040,350,559.06 | 100.00 | 3,371,391.50 | 470,588,564.44 | 100.00 | 3,465,472.70 |
Notes:(1)Significantprepaymentwithagingmorethan1yearwasmainlytheprepaymentofcompanieswithnocooperation.(2)ThetotalamountoftopfiveofprepaymentofendingbalancecollectedbyarrearspartywasRMB375,850,722.16,accountingfor36.13%oftotalendingbalanceofprepayment.(3)ThewithdrawalamountofbaddebtprovisionthisyearwasofRMB33,969.26;thecollectedorreversedbaddebtprovisionwasRMB151,142.26thisyear;andtherewasnowrite-offbaddebtprovision;theincreasedamountwasofRMB23,091.80duetochangesinexchangerate.5.OtherReceivables
| Item | Endingbalance | Beginningbalance |
| Interestreceivable | 4,059,682.40 | 1,813,256.77 |
| Dividendsreceivable | 547,848.62 | - |
| Otherreceivables | 406,196,649.48 | 182,405,099.39 |
| Total | 410,804,180.50 | 184,218,356.16 |
(1)InterestReceivable
| Item | Endingbalance | Beginningbalance |
| Fixedtimedeposits | 3,440,237.63 | 1,422,238.38 |
| Entrustedloans | 48,888.89 | 391,018.39 |
| Factoringinterest | 570,555.88 | |
| Total | 4,059,682.40 | 1,813,256.77 |
(2)Dividendsreceivable
| Item(orinvestees) | Endingbalance | Beginningbalance |
| Chongqingqingjia | 547,848.62 | --- |
| Total | 547,848.62 | --- |
(3)OtherReceivables
?OtherReceivablesClassifiedbyCategory
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion | Amount | Withdrawalproportion | ||
| Otherreceivableswithsignificantindividualamountandmakeindependentprovisionforbaddebt | 183,915,489.33 | 29.70 | 173,300,179.23 | 94.23 | 10,615,310.10 |
| Otherreceivableswithdrawnbaddebtprovisionaccordingtocreditriskscharacteristics | |||||
| Group1:aginggroup | 434,706,709.91 | 70.19 | 39,622,114.57 | 9.11 | 395,084,595.34 |
| Subtotalofgroups | 434,706,709.91 | 70.19 | 39,622,114.57 | 9.11 | 395,084,595.34 |
| Otherreceivableswithinsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 703,518.00 | 0.11 | 206,773.96 | 29.39 | 496,744.04 |
| Total | 619,325,717.24 | 100.00 | 213,129,067.76 | 34.41 | 406,196,649.48 |
(Continued)
| Category | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion | Amount | Withdrawalproportion | ||
| Otherreceivableswithsignificantindividualamountandmakeindependentprovisionforbaddebt | 183,915,489.33 | 47.74 | 173,320,694.97 | 94.24 | 10,594,794.36 |
| Otherreceivableswithdrawnbad | |||||
| Category | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion | Amount | Withdrawalproportion | ||
| debtprovisionaccordingtocreditriskscharacteristics | |||||
| Group1:aginggroup | 198,796,860.68 | 51.61 | 28,768,843.02 | 14.47 | 170,028,017.66 |
| Subtotalofgroups | 198,796,860.68 | 51.61 | 28,768,843.02 | 14.47 | 170,028,017.66 |
| Otherreceivableswithinsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 2,516,181.05 | 0.65 | 733,893.68 | 29.17 | 1,782,287.37 |
| Total | 385,228,531.06 | 100.00 | 202,823,431.67 | 52.65 | 182,405,099.39 |
A.Otherreceivableswithsignificantindividualamountandmakeindependentprovisionforbaddebtattheperiod-end
| Otherreceivables(byunit) | Endingbalance | |||
| Otherreceivables | Baddebtprovision | Withdrawalproportion | Withdrawalreason | |
| Energysavingsubsidy | 152,402,680.00 | 152,402,680.00 | 100.00% | Irrecoverable |
| ShenzhenKonkaVideo&CommunicationSystemsEngineeringCo.,Ltd. | 18,115,952.51 | 7,500,642.41 | 41.40% | Assessmentirrecoverableforpartoftheamount |
| ChongqingKonkaAutoElectronicCompany | 13,396,856.82 | 13,396,856.82 | 100.00% | Irrecoverable,underbankruptcyliquidation |
| Total | 183,915,489.33 | 173,300,179.23 | — | — |
B.Inthegroups,otherreceivablesadoptingaginganalysismethodtowithdrawbaddebtprovision:
| Aging | Endingbalance | ||
| Otherreceivables | Baddebtprovision | Withdrawalproportion | |
| Within1year | 282,147,748.63 | 6,123,073.51 | 2.17 |
| 1to2years | 111,966,212.63 | 8,340,278.22 | 7.45 |
| 2to3years | 8,970,642.49 | 1,836,551.60 | 20.47 |
| 3to4years | 5,459,223.01 | 2,729,611.51 | 50.00 |
| Aging | Endingbalance | ||
| Otherreceivables | Baddebtprovision | Withdrawalproportion | |
| 4to5years | 9,940,013.33 | 4,969,729.92 | 50.00 |
| Over5years | 16,222,869.82 | 16,222,869.82 | 100.00 |
| Total | 434,706,709.91 | 39,622,114.57 | |
②OtherAccountReceivableClassifiedbyAccountNature
| Nature | Endingcarryingamount | Beginningcarryingamount |
| Energy-savingsubsidies | 152,402,680.00 | 152,402,680.00 |
| Intercoursefunds | 51,914,614.91 | 68,258,009.31 |
| Borrowingsofrelated-parties | 190,535,636.18 | 27,396,856.82 |
| Buyoutfinancialserviceincomereceivable | 29,403,385.01 | 17,115,968.70 |
| Otherexternalborrowings | 53,891,530.62 | - |
| Depositandmargin | 59,252,474.98 | 31,270,504.40 |
| Equitytransferredmoney | 18,228,687.41 | 23,715,952.51 |
| Prettycash | 3,500,807.51 | 5,595,851.91 |
| Others | 60,195,900.62 | 59,472,707.41 |
| Total | 619,325,717.24 | 385,228,531.06 |
③BadDebtProvisionWithdrawal,ReversedorRecoveredintheReportingPeriodThewithdrawalamountofthebaddebtprovisionduringtheReportingPeriodwasofRMB6,618,105.76.theamountofthereversedorcollectedpartduringtheReportingPeriodwasofRMB3,788,310.66.ThedecreasedamountwasRMB329,503.85duetothelossofcontrollingrightofsubsidiaries.TheincreasedbaddebtprovisionwasRMB7,781,717.39duetosubsidiaries’corporation;theincreasedbaddebtprovisionwasRMB23,627.45duetochangesinexchangerate.④Top5OtherAccountsReceivableinEndingBalanceCollectedaccordingtotheArrearsParty
| Nameofunits | Nature | Endingbalance | Aging | Proportionofendingbalanceofthetotalotheraccountsreceivable | Endingbalanceofbaddebtprovision |
| Nationalenergy-savingandbenefitingpeople | Subsidies | 152,402,680.00 | 3-4years,over5years | 24.61 | 152,402,680.00 |
| Nameofunits | Nature | Endingbalance | Aging | Proportionofendingbalanceofthetotalotheraccountsreceivable | Endingbalanceofbaddebtprovision |
| (Energy-savingsubsidies) | |||||
| EquitytransferofDaiRongxingandotherintercoursefunds | Intercoursefunds | 81,450,139.05 | Within1year | 13.15 | 1,629,002.78 |
| JiangxiMeijiIndustryCo.,ltd | Intercoursefunds | 74,788,640.31 | Within1year | 12.08 | 1,495,772.81 |
| PrivateequityinvestmentfundsNo.1ofTianrongRongfeng | Intercoursefunds | 48,000,000.00 | 1-2years | 7.75 | 2,400,000.00 |
| ShenzhenKonkaVideo&CommunicationSystemsEngineeringCo.,Ltd. | Transferredfunds | 18,115,952.51 | 4-5years | 2.93 | 7,500,642.41 |
| Total | —— | 374,757,411.87 | —— | 60.52 | 165,428,098.00 |
6.Inventory
(1)CategoryofInventory
| Item | Endingbalance | |||
| Carryingamount | Ofwhich:thecapitalizedamountoftheborrowings | Fallingpricereserves | Carryingvalue | |
| Developmentprojectsoftheproperty: | ||||
| Developmentcost | 85,167,073.18 | 2,470,133.87 | - | 85,167,073.18 |
| Developmentproducts | - | - | - | - |
| Landintendedtodevelop | 70,855,200.00 | - | - | 70,855,200.00 |
| Subtotal | 156,022,273.18 | 2,470,133.87 | - | 156,022,273.18 |
| Non-developmentprojectsoftheproperty: | ||||
| Rawmaterials | 1,122,370,078.37 | - | 73,754,748.97 | 1,048,615,329.40 |
| Semi-finishedproduct | 89,334,764.13 | - | 10,260,152.74 | 79,074,611.39 |
| Item | Endingbalance | |||
| Carryingamount | Ofwhich:thecapitalizedamountoftheborrowings | Fallingpricereserves | Carryingvalue | |
| Inventorygoods | 4,518,051,460.16 | - | 330,081,328.25 | 4,187,970,131.91 |
| Finishedbutunsettledassetsfromconstructioncontract | 70,767,724.57 | - | - | 70,767,724.57 |
| Subtotal | 5,800,524,027.23 | - | 414,096,229.96 | 5,386,427,797.27 |
| Total | 5,956,546,300.41 | 2,470,133.87 | 414,096,229.96 | 5,542,450,070.45 |
(Continued)
| Item | Beginningbalance | |||
| Carryingamount | Ofwhich:thecapitalizedamountoftheborrowings | Fallingpricereserves | Carryingvalue | |
| Developmentprojectsoftheproperty: | ||||
| Developmentcost | 382,096,368.17 | — | — | 382,096,368.17 |
| Developmentproducts | 17,203,260.25 | 94,119.39 | — | 17,203,260.25 |
| Subtotal | 399,299,628.42 | 94,119.39 | — | 399,299,628.42 |
| Non-developmentprojectsoftheproperty: | ||||
| Rawmaterials | 761,148,857.65 | — | 22,807,431.06 | 738,341,426.59 |
| Semi-finishedproduct | 112,079,579.22 | — | 8,475,640.99 | 103,603,938.23 |
| Inventorygoods | 3,740,419,327.12 | — | 291,591,777.78 | 3,448,827,549.34 |
| Turnovermaterial | 291,022.95 | — | — | 291,022.95 |
| Subtotal | 4,613,938,786.94 | — | 322,874,849.83 | 4,291,063,937.11 |
| Total | 5,013,238,415.36 | 94,119.39 | 322,874,849.83 | 4,690,363,565.53 |
(2)ListoftheDevelopmentCost
| Nameofitem | Startingtime | Expectedcompletiontimeofthenextbatch | Beginningamount | Endingamount |
| PhasesofShuiyueZhouzhuangProject | 2015 | Finishingbyphases,PhaseIVisestimatedtobefinishedin2018 | 304,110,330.47 | - |
| InnovationCenter | April2018 | December2022 | 77,986,037.70 | 85,167,073.18 |
| Total | 382,096,368.17 | 85,167,073.18 |
(3)ListoftheDevelopedProducts
| Nameofitem | Completiontime | Beginningamount | Increased | Decreased | Otherdecrease | Endingamount |
| ShuiyueZhouzhuangProject(PhaseI) | 2014 | 3,955,097.73 | - | - | 3,955,097.73 | - |
| ShuiyueZhouzhuangProject(PhaseII) | 2015 | 2,072,508.39 | - | - | 2,072,508.39 | - |
| ShuiyueZhouzhuangProject(PhaseIII) | 2017 | 11,175,654.13 | - | 5,473,448.57 | 5,702,205.56 | - |
| Total | 17,203,260.25 | - | 5,473,448.57 | 11,729,811.68 | - |
Note:otherincreasewasduetothelossofthecontrollingrightofsubsidiariesintheReportingPeriod.
(4)FallingPriceReservesofInventory
| Item | Beginningbalance | Increasedamount | Decreasedamount | Endingbalance | ||
| Withdrawal | Increaseofmerger | Reverseorwrite-off | Decreaseoflosingcontrollingright | |||
| Rawmaterials | 22,807,431.06 | 15,659,755.51 | 57,178,835.96 | 21,891,273.56 | - | 73,754,748.97 |
| Goodsinprocess | 8,475,640.99 | 9,762,469.66 | - | 7,977,957.91 | - | 10,260,152.74 |
| Inventorygoods | 291,591,777.78 | 113,999,616.04 | 3,004,465.39 | 70,759,603.19 | 7,754,927.77 | 330,081,328.25 |
| Total | 322,874,849.83 | 139,421,841.21 | 60,183,301.35 | 100,628,834.66 | 7,754,927.77 | 414,096,229.96 |
(5)WithdrawalProvisionBasisoftheFallingPriceoftheInventoryandtheReasonsoftheReversedorWrite-off
| Item | Specificbasisofwithdrawaloffallingpricereservesofinventory | Reasonsforreverse | Reasonsforwrite-off |
| Rawmaterials | Therealizablenetvaluewaslowerthanthecarryingvalue | — | Soldordisposedinthecurrentperiod |
| Goodsinprocess | Therealizablenetvaluewaslowerthanthecarryingvalue | — | Soldordisposedinthecurrentperiod |
| Inventorygoods | Therealizablenetvaluewaslowerthanthecarryingvalue | — | Soldinthecurrentperiod |
(6)EndingbalanceoftheinventorywhichincludescapitalizedborrowingexpenseswasRMB2,470,133.87(7)FinishedbutUnsettledAssetsfromConstructionContract
| Item | Amount |
| Accumulativelyincurredcosts | 1,059,617,631.78 |
| Accumulativelyrecognizedgrossmargin | 442,360,457.21 |
| Less:estimatedloss | - |
| Settledamounts | 1,486,055,207.82 |
| FinishedbutUnsettledAssetsfromConstructionContract | 15,922,881.17 |
7.CurrentPortionofNon-currentAssets
| Item | Endingbalance | Beginningbalance | Remark |
| Currentportionoflong-termreceivable | 22,318,208.13 | - | Fordetails,seeNoteVI.10 |
| Total | 22,318,208.13 | - |
8.OtherCurrentAssets
| Item | Endingbalance | Beginningbalance |
| Financialproducts | - | 400,063,013.70 |
| Principalandinterestofentrustedloanstojointventures | 1,824,523,111.11 | - |
| Entrustedfinancing | 30,000,000.00 | 979,000,000.00 |
| Unreachedbankdeposits | - | 4,401,110.41 |
| Item | Endingbalance | Beginningbalance |
| Prepaymentsanddeductibletaxes,andrefundoftaxforreportreceivable | 794,991,256.00 | 331,862,744.70 |
| Prepaymentoflandpurchase | 75,450,000.00 | - |
| Investmentamounttotelevisionprogram | 18,900,000.00 | - |
| Others | 351,774.87 | - |
| Total | 2,744,216,141.98 | 1,715,326,868.81 |
9.Available-for-saleFinancialAssets(1)ListofAvailable-for-saleFinancialAssets
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Available-for-saleequityinstruments | 644,412,666.97 | 10,747,785.64 | 633,664,881.33 | 722,918,184.73 | 10,747,785.64 | 712,170,399.09 |
| Ofwhich:measuredatfairvalue | - | - | - | 58,162.76 | - | 58,162.76 |
| Measuredbycost | 644,412,666.97 | 10,747,785.64 | 633,664,881.33 | 722,860,021.97 | 10,747,785.64 | 712,112,236.33 |
| Total | 644,412,666.97 | 10,747,785.64 | 633,664,881.33 | 722,918,184.73 | 10,747,785.64 | 712,170,399.09 |
(2)Available-for-saleFinancialAssetsMeasuredbyCostatthePeriod-end
| Investee | Carryingamount | |||
| Period-begin | Increased | Decreased | Period-end | |
| ShenzhenQianhaiQingsongVentureCapitalFundEnterprise | 20,000,000.00 | - | 20,000,000.00 | - |
| ShenzhenTianyilianScience&TechnologyCo.,Ltd. | 4,800,000.00 | - | - | 4,800,000.00 |
| ShenzhenADotTVCo.,Ltd. | 5,750,000.00 | - | - | 5,750,000.00 |
| FeihongElectronicsCo.,Ltd. | 1,300,000.00 | - | - | 1,300,000.00 |
| ZAEFI | 100,000.00 | - | - | 100,000.00 |
| ShenzhenChuangceInvestmentDevelopmentCo.,Ltd. | 485,000.00 | - | - | 485,000.00 |
| ShanlianInformationTechnologyEngineeringCenter | 5,000,000.00 | - | - | 5,000,000.00 |
| ShenzhenCIUScience&TechnologyCo.,Ltd. | 1,153,000.00 | - | - | 1,153,000.00 |
| Investee | Carryingamount | |||
| Period-begin | Increased | Decreased | Period-end | |
| ShenzhenDigitalTVNationalEngineeringLaboratoryCo.,Ltd. | 6,000,000.00 | 3,000,000.00 | - | 9,000,000.00 |
| ShanghaiNationalEngineeringResearchCenterofDigitalTVCo.,Ltd. | 2,400,000.00 | - | - | 2,400,000.00 |
| ChinaAMC-JiayiOverseasOrientationPrograms | 203,000,000.00 | - | - | 203,000,000.00 |
| HunanVaryScience&TechnologyCo.,Ltd. | 47,230,000.00 | - | - | 47,230,000.00 |
| BeijingKonkaTechnologyCo.,Ltd | 4,700,000.00 | - | - | 4,700,000.00 |
| YibinOCTSanjiangRealEstateCo.,Ltd | 120,000,000.00 | 80,000,000.00 | - | 200,000,000.00 |
| EnraytekOptoelectronics(Shanghai)Co.,Ltd. | 61,494,666.97 | - | - | 61,494,666.97 |
| WuhanTianyuanEnvironmentalProtectionCo.,Ltd(Note?) | 239,447,355.00 | - | 239,447,355.00 | - |
| NingboYuanqingNo.9InvestmentPartnershipBusiness | - | 98,000,000.00 | - | 98,000,000.00 |
| ChongqingKonkaEurotomotiveElectronicCo.,Ltd.(Note?) | - | - | - | - |
| Total | 722,860,021.97 | 181,000,000.00 | 259,447,355.00 | 644,412,666.97 |
(Continued)
| Investee | Depreciationreserves | Shareholdingproportionamongtheinvestees(%) | CashbonusoftheReportingPeriod | |||
| Period-begin | Increased | Decreased | Period-end | |||
| ShenzhenQianhaiQingsongVentureCapitalFundEnterprise | - | - | - | - | - | - |
| ShenzhenTianyilianScience&TechnologyCo.,Ltd. | - | - | - | - | 6.10 | - |
| ShenzhenADotTVCo.,Ltd. | - | - | - | - | 12.67 | - |
| Investee | Depreciationreserves | Shareholdingproportionamongtheinvestees(%) | CashbonusoftheReportingPeriod | |||
| Period-begin | Increased | Decreased | Period-end | |||
| FeihongElectronicsCo.,Ltd. | 5,750,000.00 | - | - | 5,750,000.00 | 9.60 | - |
| ZAEFI | 1,300,000.00 | - | - | 1,300,000.00 | - | - |
| ShenzhenChuangceInvestmentDevelopmentCo.,Ltd. | 100,000.00 | - | - | 100,000.00 | 1.00 | - |
| ShanlianInformationTechnologyEngineeringCenter | 485,000.00 | - | - | 485,000.00 | 9.62 | - |
| ShenzhenCIUScience&TechnologyCo.,Ltd. | 1,639,190.80 | - | - | 1,639,190.80 | 11.50 | - |
| ShenzhenDigitalTVNationalEngineeringLaboratoryCo.,Ltd. | 200,000.00 | - | - | 200,000.00 | 6.00 | - |
| ShanghaiNationalEngineeringResearchCenterofDigitalTVCo.,Ltd. | 1,273,594.84 | - | - | 1,273,594.84 | 4.26 | - |
| ChinaAMC-JiayiOverseasOrientationPrograms | - | - | - | - | - | 17,920,000.00 |
| HunanVaryScience&TechnologyCo.,Ltd. | - | - | - | - | 8.38 | |
| BeijingKonkaTechnologyCo.,Ltd | - | - | - | - | 3.23 | - |
| YibinOCTSanjiangRealEstateCo.,Ltd | - | - | - | - | 20.00 | - |
| EnraytekOptoelectronics(Shanghai)Co.,Ltd. | - | - | - | - | 18.90 | - |
| WuhanTianyuanEnvironmentalProtectionCo.,Ltd(Note?) | - | - | - | - | 20.02 | - |
| NingboYuanqingNo.9InvestmentPartnershipBusiness | - | - | - | - | 13.33 | - |
| Investee | Depreciationreserves | Shareholdingproportionamongtheinvestees(%) | CashbonusoftheReportingPeriod | |||
| Period-begin | Increased | Decreased | Period-end | |||
| ChongqingKonkaEurotomotiveElectronicCo.,Ltd.(Note?) | - | - | - | - | - | - |
| Total | 10,747,785.64 | - | - | 10,747,785.64 | - | 17,920,000.00 |
Note:
①TheShareholdingratioofWuhanTianyuanEnvironmentalProtectionCo.,LtdintheReportingPeriodincreaseto20.02%.AndtheCompanyofficiallydispatchedmembersofBoard,whichhadagreatimpactontheWuhanTianyuanEnvironmentalProtectionCo.,Ltd,soitshalltransferredtolong-termequityinvestmentmeasuredbyequitymethod.(4)ChangesoftheImpairmentoftheAvailable-for-saleFinancialAssetsintheReportingPeriod
| Categoryofavailable-for-salefinancialassets | Available-for-saleequityinstruments |
| Withdrawnimpairmentbalanceattheperiod-begin | 10,747,785.64 |
| WithdrawaloftheReportingPeriod | - |
| Ofwhich:transferredfromothercomprehensiveincome | - |
| DecreaseoftheReportingPeriod | - |
| Ofwhich:recoveredorreversedfromthefairvalueafterthePeriod | - |
| Withdrawnimpairmentbalanceattheperiod-end | 10,747,785.64 |
10.Long-termReceivables(1)ListofLong-termReceivables
| Item | Endingbalance | Beginningbalance | Intervalofdiscountrate | ||||
| Carryingamount | Impairmentprovision | Carryingvalue | Carryingamount | Impairmentprovision | Carryingvalue | ||
| Financeleasingamount | 33,575,058.68 | - | 33,575,058.68 | - | - | - | 4.35%-8.78% |
| Ofwhich:unrealizedfinancingincome | 2,045,709.65 | - | 2,045,709.65 | - | - | - | 4.35%-8.78% |
| Currentportionoflong-termreceivables(fordetails,seeNoteVI.7) | 22,318,208.13 | - | 22,318,208.13 | - | - | - | - |
| Cashdepositsoflong-termreceivables | 7,801,495.81 | - | 7,801,495.81 | - | - | - | - |
| Long-termreceivablesofprojectswithfranchisetights | 349,416,483.56 | - | 349,416,483.56 | - | - | - | - |
| Total | 390,793,038.05 | - | 390,793,038.05 | - | - | - | - |
(2)ListofProjectswithFranchiseRights
| Item | Type | Projectscale | Franchiseright | Dateofcontract | Operation |
| PPPProjectofwatersupplyandsewageRushanSilverBeach | PPP | 163,558,100.00 | Rightofchargeforsewagedisposal | July2016 | Good |
(3)ChangesinLong-termReceivablesofProjectswithFranchiseRights
| Item | Initialinvestedamount | Beginningbalance | Increased | decreased | Endingbalance | Ofwhich:reclassifiedintocurrentportionoflong-termreceivables | ||||
| MergerincreaseintheReportingPeriod | Newlyincreasedinvestmentamount | Interestincome | Principalrecover | Interestrecover | Otherdecrease | |||||
| PPPProjectofwatersupplyandsewageofRushanSilverBeach | 349,416,483.56 | - | 344,183,646.57 | 5,232,836.99 | - | - | - | - | 349,416,483.56 | - |
| Total | 349,416,483.56 | - | 344,183,646.57 | 5,232,836.99 | - | - | - | - | 349,416,483.56 | - |
11.Long-termEquityInvestment
| Investee | Beginningbalance | Increase/decreaseintheReportingPeriod | |||||
| Additionalinvestment | Increaseforcombinations | Decreasedinvestment | Investmentprofitandlossrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Otherequitychanges | ||
| KonkaVenturesDevelopment(Shenzhen)Co.,Ltd. | - | 2,450,000.00 | - | - | -90,951.96 | - | - |
| NanjingIntelligenceOpticalInformationTechnologyResearch | - | 2,000,000.00 | - | - | -394,530.13 | - | - |
| Investee | Beginningbalance | Increase/decreaseintheReportingPeriod | |||||
| Additionalinvestment | Increaseforcombinations | Decreasedinvestment | Investmentprofitandlossrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Otherequitychanges | ||
| InstituteCo.,Ltd | |||||||
| GuoguangRuilian(Shenzhen)InternetTechnologyCo.,Ltd. | 2,425,262.66 | - | - | - | -1,647,306.08 | - | - |
| ChongqingQingjiaElectronicsCo.,Ltd.(①) | - | - | - | - | - | - | - |
| ShenzhenJielunteTechnologyCo.,Ltd.(formerlyknownas:ShenzhenKonkaPrecisionMouldManufacturingCo.,Ltd) | 99,562,391.48 | - | - | - | -16,232,947.80 | - | - |
| PanxuIntelligenceCo.,Ltd | 48,417,046.08 | - | - | - | 800,503.44 | -47,390.23 | - |
| BeijingKonkaJingyuanTechnologyCo.,Ltd | - | 760,000.00 | - | - | -741.06 | - | - |
| ShenzhenKonkaSuyuanInvestmentIndustrialCo.,Ltd. | - | - | - | - | - | - | - |
| XiamenKonkaPanxuEquityInvestmentManagementCo.,Ltd | - | - | - | - | - | - | - |
| Investee | Beginningbalance | Increase/decreaseintheReportingPeriod | |||||
| Additionalinvestment | Increaseforcombinations | Decreasedinvestment | Investmentprofitandlossrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Otherequitychanges | ||
| Oriexcellent(Zhuhai)AssetsManagementCo.,Ltd | - | 6,000,000.00 | - | - | -3,242,442.69 | - | - |
| NingboYongkangInvestmentManagementCo.,Ltd | - | - | - | - | - | - | - |
| FlyingTech(Shenzhen)Co.,Ltd | - | 6,000,000.00 | - | - | -1,131,201.64 | - | - |
| WeihaiCityWaterEnvironmentalProtectionTechnologyCo.,Ltd(②) | - | 51,000,000.00 | - | - | -70,570.55 | - | - |
| WeihaiYihengEnvironmentTechnologyCo.,Ltd(②) | - | - | 2,027,201.88 | - | 413,231.38 | - | - |
| LaizhouLairunFinancialLeasingCo.,Ltd(②) | - | - | 4,337,942.19 | - | 233,530.51 | - | - |
| BinzhouBeihaiWeiqiaoSolidWasteDisposalCo.,Ltd(②) | - | - | 100,033,567.26 | 100,033,567.26 | - | - | - |
| ShandongBishuiyuanEnvironmentalProtectionTechnologyCo.,Ltd(②) | - | - | 63,492,789.75 | - | -3,820,856.12 | - | - |
| Investee | Beginningbalance | Increase/decreaseintheReportingPeriod | |||||
| Additionalinvestment | Increaseforcombinations | Decreasedinvestment | Investmentprofitandlossrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Otherequitychanges | ||
| ShenzhenRF-LINKTechnologyCo.,Ltd. | - | - | 22,232,418.57 | - | 2,512,650.91 | - | - |
| ShenzhenYaodeTechnologyCo.,Ltd. | - | 98,000,000.00 | - | - | 2,627,067.11 | - | -349,514.56 |
| ChutianDragonCo.,Ltd | 26,462,212.34 | - | - | - | 194,455.24 | - | - |
| KonkaGreen,andKonkaTechnology(③) | 210,279,132.55 | - | - | - | 11,931,702.63 | - | - |
| ZhuhaiJinsuPlasticCo.,Ltd. | 617,214,571.50 | - | - | - | 13,423,191.54 | - | -5,792,158.11 |
| ShenzhenKonkaIntelligentElectricalApplianceTechnologyCo.,Ltd | 79,729,560.91 | - | - | - | -2,107,745.08 | 788,087.31 | - |
| ShenzhenZhongbingKonkatechnologyCo.,Ltd. | 9,444,160.97 | - | - | - | 1,596,085.85 | - | - |
| GuangdongHotcommInformationTechnologyCo.,Ltd | 4,927,589.47 | - | - | - | -2,640,110.95 | - | - |
| ZhonggaoKonkaIntelligentTechnology(Beijing)Co.,Ltd | 14,317,400.80 | - | - | - | -3,699,527.01 | - | - |
| ShenzhenOCTLife | 1,523,166.24 | - | - | - | -1,523,166.24 | - | - |
| Investee | Beginningbalance | Increase/decreaseintheReportingPeriod | |||||
| Additionalinvestment | Increaseforcombinations | Decreasedinvestment | Investmentprofitandlossrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Otherequitychanges | ||
| NetworkTechnologyCo.,Ltd | |||||||
| KunshanKonkaElectronicsCo.,Ltd. | - | - | - | - | - | - | - |
| KunshanKangshengInvestmentDevelopmentCo.,Ltd. | -22,084.12 | 3,771,400.00 | - | - | -156,801.82 | - | - |
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | 205,706,932.86 | - | - | - | -5,012,466.06 | - | - |
| ShenzhenBosserNewMaterialsCo.,Ltd. | - | - | - | - | - | - | - |
| HeilongjiangLongkangZhijiaTechnologyCo.,Ltd | - | - | - | 35,053,749.75 | 11,738,814.32 | - | - |
| ShanxiSilkRoadYunqiIntelligentTechnologyCo.,Ltd | - | 75,000,000.00 | - | - | 4,859,338.44 | - | - |
| WuhanTianyuanEnvironmentalProtectionCo.,Ltd | - | 7,000,000.00 | - | - | -599,519.48 | - | - |
| KonkaVenturesDevelopment(Shenzhen) | - | 5,400,000.00 | - | - | -877,490.67 | - | - |
| Investee | Beginningbalance | Increase/decreaseintheReportingPeriod | |||||
| Additionalinvestment | Increaseforcombinations | Decreasedinvestment | Investmentprofitandlossrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Otherequitychanges | ||
| Co.,Ltd. | |||||||
| NanjingIntelligenceOpticalInformationTechnologyResearchInstituteCo.,Ltd | - | - | - | - | 12,822,900.47 | - | - |
| Total | 1,319,987,343.74 | 257,381,400.00 | 192,123,919.65 | 135,087,317.01 | 19,905,096.50 | 740,697.08 | -6,141,672.67 |
(Continued)
| Investee | Increase/decreaseintheReportingPeriod | Endingbalance | Endingbalanceofimpairmentprovisionforassets | ||||
| Declarationofcashdividendsorprofits | Withdrawnimpairmentprovision | Costmethodconvertedintoequitymethod | Financialassetsconvertedintoequitymethod | Other | |||
| KonkaVenturesDevelopment(Shenzhen)Co.,Ltd. | - | - | - | - | - | 2,359,048.04 | - |
| NanjingIntelligenceOpticalInformationTechnologyResearchInstituteCo.,Ltd | - | - | - | - | - | 1,605,469.87 | - |
| GuoguangRuilian(Shenzhen)InternetTechnologyCo.,Ltd. | - | - | - | - | - | 777,956.58 | - |
| ChongqingQingjiaElectronicsCo.,Ltd.(①) | - | - | 19,750,739.24 | - | - | 19,750,739.24 | - |
| ShenzhenJielunteTechnologyCo.,Ltd.(formerly | - | - | - | - | - | 83,329,443.68 | - |
| Investee | Increase/decreaseintheReportingPeriod | Endingbalance | Endingbalanceofimpairmentprovisionforassets | ||||
| Declarationofcashdividendsorprofits | Withdrawnimpairmentprovision | Costmethodconvertedintoequitymethod | Financialassetsconvertedintoequitymethod | Other | |||
| knownas:ShenzhenKonkaPrecisionMouldManufacturingCo.,Ltd) | |||||||
| PanxuIntelligenceCo.,Ltd | - | - | - | - | - | 49,170,159.29 | - |
| BeijingKonkaJingyuanTechnologyCo.,Ltd | - | - | - | - | - | 759,258.94 | - |
| ShenzhenKonkaSuyuanInvestmentIndustrialCo.,Ltd. | - | - | - | - | - | - | - |
| XiamenKonkaPanxuEquityInvestmentManagementCo.,Ltd | - | - | - | - | - | - | - |
| Oriexcellent(Zhuhai)AssetsManagementCo.,Ltd | - | - | - | - | - | 2,757,557.31 | - |
| NingboYongkangInvestmentManagementCo.,Ltd | - | - | - | - | - | - | - |
| FlyingTech(Shenzhen)Co.,Ltd | - | - | - | - | - | 4,868,798.36 | - |
| NanjingK-StarTechnologyIndustrialParkOperationManagementCo.,Ltd | - | - | - | - | - | 50,929,429.45 | - |
| WeihaiCityWaterEnvironmentalProtectionTechnologyCo.,Ltd(?) | - | - | - | - | - | 2,440,433.26 | - |
| WeihaiYihengEnvironmentTechnologyCo.,Ltd(?) | - | - | - | - | - | 4,571,472.70 | - |
| LaizhouLairunFinancialLeasingCo.,Ltd(?) | - | - | - | - | - | - | - |
| BinzhouBeihaiWeiqiaoSolidWasteDisposalCo., | - | - | - | - | - | 59,671,933.63 | - |
| Investee | Increase/decreaseintheReportingPeriod | Endingbalance | Endingbalanceofimpairmentprovisionforassets | ||||
| Declarationofcashdividendsorprofits | Withdrawnimpairmentprovision | Costmethodconvertedintoequitymethod | Financialassetsconvertedintoequitymethod | Other | |||
| Ltd(?) | |||||||
| ShandongBishuiyuanEnvironmentalProtectionTechnologyCo.,Ltd(?) | - | - | - | - | - | 24,745,069.48 | - |
| ShenzhenRF-LINKTechnologyCo.,Ltd. | - | - | - | - | - | 100,277,552.55 | - |
| ShenzhenKonkaInformationNetworkCo.,Ltd | - | - | - | - | - | 26,656,667.58 | - |
| ShenzhenYaodeTechnologyCo.,Ltd. | - | - | - | - | - | 222,210,835.18 | - |
| ChutianDragonCo.,Ltd | - | - | - | - | - | 624,845,604.93 | - |
| KonkaGreen,andKonkaTechnology(③) | - | - | - | - | - | 78,409,903.14 | - |
| ZhuhaiJinsuPlasticCo.,Ltd. | - | - | - | - | - | 11,040,246.82 | - |
| ShenzhenKonkaIntelligentElectricalApplianceTechnologyCo.,Ltd | - | - | - | - | - | 2,287,478.52 | - |
| ShenzhenZhongbingKonkatechnologyCo.,Ltd. | - | - | - | - | - | 10,617,873.79 | - |
| GuangdongHotcommInformationTechnologyCo.,Ltd | - | - | - | - | - | - | - |
| ZhonggaoKonkaIntelligentTechnology(Beijing)Co.,Ltd | - | - | - | - | - | - | - |
| ShenzhenOCTLifeNetworkTechnologyCo.,Ltd | - | - | - | - | - | 3,592,514.06 | - |
| KunshanKonkaElectronicsCo.,Ltd. | - | - | - | - | - | 200,694,466.80 | - |
| KunshanKangshengInvestmentDevelopmentCo., | - | - | 269,673,264.00 | - | - | 269,673,264.00 | - |
| Investee | Increase/decreaseintheReportingPeriod | Endingbalance | Endingbalanceofimpairmentprovisionforassets | ||||
| Declarationofcashdividendsorprofits | Withdrawnimpairmentprovision | Costmethodconvertedintoequitymethod | Financialassetsconvertedintoequitymethod | Other | |||
| Ltd. | |||||||
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | - | - | 460,000,000.00 | - | - | 436,685,064.57 | - |
| ShenzhenBosserNewMaterialsCo.,Ltd. | - | - | - | - | - | 79,859,338.44 | - |
| HeilongjiangLongkangZhijiaTechnologyCo.,Ltd | - | - | - | - | - | 6,400,480.52 | - |
| ShanxiSilkRoadYunqiIntelligentTechnologyCo.,Ltd | - | - | - | - | - | 4,522,509.33 | - |
| WuhanTianyuanEnvironmentalProtectionCo.,Ltd | - | - | - | 239,447,355.00 | - | 252,270,255.47 | - |
| Total | - | - | 749,424,003.24 | 239,447,355.00 | - | 2,637,780,825.53 | - |
?On25October2018,RuntasGroupdelegated20%ofChongqingQingjia'svotingrightstoChongqingMachineryMechanical&ElectronicsHolding(Group)Co.,Ltd.(CME)formanagementandexercise.RuntasGroupandCMEjointlyhold60%ofChongqingQingjia'sequity,andtheCompanyhasnocontrolrightsthereafter.②WeihaiWaterEnvironmentalProtectionTechnologyCo.,Ltd.,WeihaiYihengEnvironmentalTechnologyCo.,Ltd.,LaizhouLairunFinancialLeasingCo.,Ltd.,BeihaiWeiqiaoSolidWasteDisposalCo.,Ltd.,ShandongBishuiyuanEnvironmentalProtectionTechnologyCo.,Ltd.andYantaiEconEnterpriseManagementCentre(LimitedPartnership)areincludedbytheacquisitionofEconTechnology.
12.InvestmentProperty
| Item | Housesandbuildings |
| I.Originalcarryingvalue | |
| 1.Beginningbalance | 249,923,047.75 |
| 2.Increasedamountoftheperiod | - |
| 3.Decreasedamountoftheperiod | - |
| 4.Endingbalance | 249,923,047.75 |
| II.Theaccumulativedepreciationandaccumulativeamortization | |
| 1.Beginningbalance | 33,467,417.76 |
| 2.Increasedamountoftheperiod | 5,631,274.27 |
| 3.Decreasedamountoftheperiod | - |
| 4.Endingbalance | 39,098,692.03 |
| III.Impairmentprovision | |
| 1.Beginningbalance | - |
| 2.Increasedamountoftheperiod | - |
| 3.Decreasedamountoftheperiod | - |
| 4.Endingbalance | - |
| IV.Carryingvalue | - |
| 1.Endingcarryingvalue | 210,824,355.72 |
| 2.Beginningcarryingvalue | 216,455,629.99 |
13.FixedAssets
| Item | Endingbalance | Beginningbalance |
| Fixedassets | 2,410,226,495.81 | 1,587,170,348.35 |
| Disposaloffixedassets | - | - |
| Total | 2,410,226,495.81 | 1,587,170,348.35 |
①ListofFixedAssets
| Item | Housesandbuildings | Machineryequipment | Electronicequipment | Transportationequipment | Otherequipment | Total |
| I.Originalcarryingvalue | ||||||
| 1.Beginningbalance | 1,559,039,774.48 | 715,947,835.05 | 187,109,755.76 | 49,930,623.13 | 174,208,488.89 | 2,686,236,477.31 |
| 2.Increasedamountoftheperiod | 878,508,516.33 | 1,217,123,051.09 | 10,278,955.72 | 19,078,735.09 | 58,839,237.85 | 2,183,828,496.08 |
| (1)Purchase | 43,542,282.87 | 23,350,323.15 | 7,680,377.27 | 4,957,588.71 | 11,673,334.48 | 91,203,906.48 |
| (2)Transferofprojectunderconstruction | 17,060,762.76 | 29,253,668.91 | - | 2,184,602.05 | 8,610,729.69 | 57,109,763.41 |
| (3)increaseofbusinesscombination | 817,905,470.70 | 1,164,519,059.03 | 2,598,578.45 | 11,936,544.33 | 38,555,173.68 | 2,035,514,826.19 |
| 3.Decreasedamountoftheperiod | 277,466,887.58 | 85,505,352.10 | 24,595,294.23 | 10,349,106.07 | 34,606,392.44 | 432,523,032.42 |
| Item | Housesandbuildings | Machineryequipment | Electronicequipment | Transportationequipment | Otherequipment | Total |
| (1)DisposalorScrap | 715,368.47 | 24,410,163.74 | 14,512,579.21 | 7,536,214.81 | 8,627,755.03 | 55,802,081.26 |
| (2)decreaseoflossofcontrollingright | 276,751,519.11 | 61,095,188.36 | 10,082,715.02 | 2,812,891.26 | 25,978,637.41 | 376,720,951.16 |
| 4.Endingbalance | 2,160,081,403.23 | 1,847,565,534.04 | 172,793,417.25 | 58,660,252.15 | 198,441,334.30 | 4,437,541,940.97 |
| II.Accumulativedepreciation | ||||||
| 1.Beginningbalance | 367,660,000.41 | 428,143,422.45 | 129,422,777.12 | 36,768,297.26 | 115,293,690.98 | 1,077,288,188.22 |
| 2.Increasedamountoftheperiod | 282,165,213.57 | 602,360,748.24 | 15,329,048.32 | 12,593,260.99 | 38,233,764.95 | 950,682,036.07 |
| (1)Withdrawal | 51,611,558.12 | 83,338,994.96 | 13,709,033.18 | 5,431,201.87 | 16,443,707.94 | 170,534,496.07 |
| (2)Increaseofbusinessmerger | 230,553,655.45 | 519,021,753.28 | 1,620,015.14 | 7,162,059.12 | 21,790,057.01 | 780,147,540.00 |
| 3.Decreasedamountoftheperiod | 15,029,283.71 | 29,175,127.41 | 8,843,791.51 | 9,175,013.31 | 11,795,734.84 | 74,018,950.78 |
| (1)DisposalorScrap | - | 19,302,965.44 | 5,600,809.43 | 6,543,813.95 | 8,113,672.20 | 39,561,261.02 |
| (2)decreaseoflossofcontrollingright | 15,029,283.71 | 9,872,161.97 | 3,242,982.08 | 2,631,199.36 | 3,682,062.64 | 34,457,689.76 |
| 4.Endingbalance | 634,795,930.27 | 1,001,329,043.28 | 135,908,033.93 | 40,186,544.94 | 141,731,721.09 | 1,953,951,273.51 |
| Item | Housesandbuildings | Machineryequipment | Electronicequipment | Transportationequipment | Otherequipment | Total |
| III.Depreciationreserves | ||||||
| 1.Beginningbalance | 1,064,479.47 | 17,067,824.99 | 1,249,373.18 | 862,703.36 | 1,533,559.74 | 21,777,940.74 |
| 2.Increasedamountoftheperiod | 183,326.44 | 52,635,761.20 | 43,490.00 | - | 117,720.40 | 52,980,298.04 |
| (1)Withdrawal | 183,326.44 | 204,691.31 | 43,490.00 | - | 117,720.40 | 549,228.15 |
| (2)Increaseofbusinessmerger | - | 52,431,069.89 | - | - | - | 52,431,069.89 |
| 3.Decreasedamountoftheperiod | - | 1,093,434.15 | 77,411.53 | 42,488.12 | 180,733.33 | 1,394,067.13 |
| (1)DisposalorScrap | - | 1,093,434.15 | 77,411.53 | 21,775.12 | 176,761.39 | 1,369,382.19 |
| (2)decreaseoflossofcontrollingright | - | - | - | 20,713.00 | 3,971.94 | 24,684.94 |
| 4.Endingbalance | 1,247,805.91 | 68,610,152.04 | 1,215,451.65 | 820,215.24 | 1,470,546.81 | 73,364,171.65 |
| IV.Carryingvalue | ||||||
| 1.Endingcarryingvalue | 1,524,037,667.05 | 777,626,338.72 | 35,669,931.67 | 17,653,491.97 | 55,239,066.40 | 2,410,226,495.81 |
| 2.Beginningcarryingvalue | 1,190,315,294.60 | 270,736,587.61 | 56,437,605.46 | 12,299,622.51 | 57,381,238.17 | 1,587,170,348.35 |
(2)ListofTemporarilyIdleFixedAssets
| Item | Originalcarryingvalue | Accumulativedepreciation | Impairmentprovision | Carryingvalue |
| Mechanicalequipment | 18,685,829.77 | 7,995,125.86 | 7,850,744.40 | 2,839,959.51 |
| Electronicequipment | 3,236,737.14 | 2,890,671.44 | — | 346,065.70 |
| Transportationequipment | 125,981.91 | 113,383.72 | — | 12,598.19 |
| Otherequipment | 470,432.84 | 393,805.77 | 42,128.24 | 34,498.83 |
| Total | 22,518,981.66 | 11,392,986.79 | 7,892,872.64 | 3,233,122.23 |
(3)FixedAssetsLeasedinfromFinancingLease
| Item | Originalcarryingvalue | Accumulativedepreciation | Impairmentprovision | Carryingvalue |
| Mechanicalequipment | 9,451,353.39 | 2,420,688.00 | 7,030,665.39 | |
| Electronicequipment | 205,128.20 | 157,264.95 | 47,863.25 | |
| Total | 9,656,481.59 | 2,577,952.95 | 7,078,528.64 |
(4)FixedAssetsLeasedoutfromOperationLease
| Item | Endingcarryingvalue |
| Housesandbuildings | 59,291,614.06 |
| Total | 59,291,614.06 |
(5)DetailsofFixedAssetsFailedtoAccomplishCertificationofProperty
| Item | Originalcarryingvalue | Accumulativedepreciation | Impairmentprovision | Netcarryingvalue | Reason |
| HuaguoyuanProjectinHuaguoyuanRoad,Guiyang | 3,628,629.00 | 210,914.08 | — | 3,417,714.92 | Underprocessing |
| PangjiangStreetPropertyinDadongDistrict,Shenyang | 10,189,892.23 | 1,084,002.58 | — | 9,105,889.65 | Theproblemsofdevelopers |
| YinhaiShangyuPropertyinGuanduDistrict,Kunming | 5,432,239.86 | 366,676.23 | — | 5,065,563.63 | Underprocessing |
| JingyuanBuildingproperty | 20,018,497.00 | 8,644,518.56 | — | 11,373,978.44 | Historicalreasons |
| YikangBuildingproperty | 76,610,752.33 | 33,457,332.77 | — | 43,153,419.56 | Historicalreasons |
| FrestecElectricalAppliancesproperty | 39,524,551.28 | — | — | 39,524,551.28 | Underprocessing |
| WorkshopsandbuildingsofJiangxikonka | 112,397,538.12 | 30,253,765.60 | — | 82,143,772.52 | Underprocessing |
| PurificationtankforliquidwasteofXingDaHongYe | 2,653,000.00 | 1,243,593.75 | — | 1,409,406.25 | Underprocessing |
14.ConstructioninProgress
| Item | Endingbalance | Beginningbalance |
| ConstructioninProgress | 2,176,871,530.80 | 135,863,821.01 |
| Engineeringmaterial | - | - |
| Total | 2,176,871,530.80 | 135,863,821.01 |
①ListofConstructioninProgress
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Impairmentprovision | Carryingvalue | Carryingamount | Impairmentprovision | Carryingvalue | |
| ComprehensiveimprovementengineeringprojectofdrainagebasinsinthecityofDonggang | 451,789,427.70 | - | 451,789,427.70 | - | - | - |
| WatersupplyengineeringprojectinMazongshanTown,SubeiMongolAutonomousCounty,GansuProvince | 552,055,516.50 | - | 552,055,516.50 | - | - | - |
| CentralCityComprehensiveacceleratedprogramsinEconomicandTechnologicalDevelopmentZoneofBinhai,Weifang | 261,826,586.30 | - | 261,826,586.30 | - | - | - |
| ThesecondlineofXinfengMicrocrystallineJade | 365,069,872.84 | - | 365,069,872.84 | - | - | - |
| ThesecondlineofJiangxiNanoCrystallizedGlass | 303,533,244.21 | - | 303,533,244.21 | - | - | - |
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Impairmentprovision | Carryingvalue | Carryingamount | Impairmentprovision | Carryingvalue | |
| GuangmingProject | 153,577,240.57 | - | 153,577,240.57 | 76,514,067.90 | - | 76,514,067.90 |
| Othersmallprojects | 89,019,642.68 | - | 89,019,642.68 | 59,349,753.11 | - | 59,349,753.11 |
| Total | 2,176,871,530.80 | - | 2,176,871,530.80 | 135,863,821.01 | - | 135,863,821.01 |
②ChangesofSignificantConstructioninProgress
| Nameofitem | Estimatednumber | Beginningbalance | IncreaseAmount | Mergerincreaseamount | Amountthattransferredtolong-termfixedassetsoftheperiod | Otherdecreasedamountoftheperiod | Endingbalance |
| ComprehensiveimprovementengineeringprojectofdrainagebasinsinthecityofDonggang | RMB952million | - | 451,789,427.70 | - | - | - | 451,789,427.70 |
| WatersupplyengineeringprojectinMazongshanTown,SubeiMongolAutonomousCounty,GansuProvince | RMB810million | - | 552,055,516.50 | - | - | - | 552,055,516.50 |
| CentralCityComprehensiveacceleratedprogramsinEconomicandTechnological | RMB404million | - | 261,826,586.30 | - | - | - | 261,826,586.30 |
| Nameofitem | Estimatednumber | Beginningbalance | IncreaseAmount | Mergerincreaseamount | Amountthattransferredtolong-termfixedassetsoftheperiod | Otherdecreasedamountoftheperiod | Endingbalance |
| DevelopmentZoneofBinhai,Weifang | |||||||
| ThesecondlineofXinfengMicrocrystallineJade | RMB381million | - | 92,065,729.57 | 273,004,143.27 | - | - | 365,069,872.84 |
| ThesecondlineofJiangxiNanoCrystallizedGlass | RMB434million | - | 60,247,959.78 | 243,285,284.43 | - | - | 303,533,244.21 |
| ProjectofGuangmingScienceandTechnologyCenter | RMB241million | 76,514,067.90 | 77,063,172.67 | - | - | - | 153,577,240.57 |
| Othersmallprojects | — | 59,349,753.11 | 75,034,778.61 | 33,952,139.17 | 76,403,862.10 | 2,913,166.11 | 89,019,642.68 |
| Total | 135,863,821.01 | 1,570,083,171.13 | 550,241,566.87 | 76,403,862.10 | 2,913,166.11 | 2,176,871,530.80 |
（Continued）
| Projectname | Proportionestimatedoftheprojectaccumulativeinput(%) | Projectprogress | Accumulativeamountofcapitalizedinterests | Ofwhich:theamountofthecapitalizedinterestsoftheperiod | Capitalizationrateoftheinterestsoftheperiod(%) | Capitalresources |
| ComprehensiveimprovementengineeringprojectofdrainagebasinsinthecityofDonggang | 47.57 | 47.57 | - | - | - | Self-ownedfund |
| WatersupplyengineeringprojectinMazongshanTown,SubeiMongolAutonomous | 68.15 | 68.15 | - | - | - | Self-ownedfund |
| Projectname | Proportionestimatedoftheprojectaccumulativeinput(%) | Projectprogress | Accumulativeamountofcapitalizedinterests | Ofwhich:theamountofthecapitalizedinterestsoftheperiod | Capitalizationrateoftheinterestsoftheperiod(%) | Capitalresources |
| County,GansuProvince | ||||||
| CentralCityComprehensiveacceleratedprogramsinEconomicandTechnologicalDevelopmentZoneofBinhai,Weifang | 64.84 | 64.84 | - | - | - | Self-ownedfund |
| ThesecondlineofXinfengMicrocrystallineJade | 95.76 | 95.76 | 22,768,437.98 | - | - | Self-ownedfundandfinanceleasing |
| ThesecondlineofJiangxiNanoCrystallizedGlass | 70.00 | 70.00 | 26,846,701.03 | - | - | Self-ownedfundandfinanceleasing |
| ProjectofGuangmingScienceandTechnologyCenter | 63.72 | 63.72 | - | - | - | Self-ownedfund |
| Othersmallprojects | - | - | - | - | - | - |
| Total | - | - | 49,615,139.01 | - | - | - |
15.IntangibleAssets
(1)Listofintangibleassets
| Item | Landuseright | Intellectualproperty | Total | ||||
| Trademarkright | Patentandknow-how | Franchiserights | Righttousesoftwareandothers | Subtotal | |||
| Item | Landuseright | Intellectualproperty | Total | ||||
| Trademarkright | Patentandknow-how | Franchiserights | Righttousesoftwareandothers | Subtotal | |||
| I.Originalcarryingvalue | |||||||
| 1.Beginningbalance | 196,989,129.47 | 3,519,159.61 | 40,234,111.64 | - | 66,665,916.59 | 110,419,187.84 | 307,408,317.31 |
| 2.Increasedamountoftheperiod | 331,993,452.03 | 44,077,946.62 | 155,333,340.10 | 111,050,625.01 | 22,998,965.55 | 333,460,877.28 | 665,454,329.31 |
| (1)Purchase | - | - | - | - | 15,416,017.19 | 15,416,017.19 | 15,416,017.19 |
| (2)Transferofprojectunderconstruction | 14,220,053.65 | - | - | - | 3,396,945.27 | 3,396,945.27 | 17,616,998.92 |
| (3)increaseofbusinesscombination | 317,773,398.38 | 44,077,946.62 | 155,333,340.10 | 111,050,625.01 | 4,186,003.09 | 314,647,914.82 | 632,421,313.20 |
| 3.Decreasedamountoftheperiod | 88,441,823.98 | 106,944.53 | 75,600.00 | - | 9,291,693.11 | 9,474,237.64 | 97,916,061.62 |
| (1)Disposal | - | - | - | - | 7,040,396.58 | 7,040,396.58 | 7,040,396.58 |
| (2)decreaseoflosingcontrollingright | 88,441,823.98 | 106,944.53 | 75,600.00 | - | 2,251,296.53 | 2,433,841.06 | 90,875,665.04 |
| 4.Endingbalance | 440,540,757.52 | 47,490,161.70 | 195,491,851.74 | 111,050,625.01 | 80,373,189.03 | 434,405,827.48 | 874,946,585.00 |
| II.Accumulatedamortization | - | - | |||||
| 1.Beginningbalance | 34,734,302.29 | 3,519,159.61 | 34,420,126.84 | - | 26,775,872.27 | 64,715,158.72 | 99,449,461.01 |
| 2.Increasedamountoftheperiod | 21,976,106.08 | 1,952,456.42 | 11,874,182.60 | 6,663,037.50 | 9,271,399.44 | 29,761,075.96 | 51,737,182.04 |
| (1)Withdrawal | 7,941,501.90 | 1,874,509.80 | 11,855,942.50 | 2,961,350.00 | 7,788,411.38 | 24,480,213.68 | 32,421,715.58 |
| (2)increaseofbusinesscombination | 14,034,604.18 | 77,946.62 | 18,240.10 | 3,701,687.50 | 1,482,988.06 | 5,280,862.28 | 19,315,466.46 |
| 3.Decreasedamountoftheperiod | 16,048,172.82 | 106,944.54 | - | - | 762,709.64 | 869,654.18 | 16,917,827.00 |
| Item | Landuseright | Intellectualproperty | Total | ||||
| Trademarkright | Patentandknow-how | Franchiserights | Righttousesoftwareandothers | Subtotal | |||
| (1)Disposal | - | - | - | - | 762,709.64 | 762,709.64 | 762,709.64 |
| (2)decreaseoflosingcontrollingright | 16,048,172.82 | 106,944.54 | - | - | - | 106,944.54 | 16,155,117.36 |
| 4.Endingbalance | 40,662,235.55 | 5,364,671.49 | 46,294,309.44 | 6,663,037.50 | 35,284,562.07 | 93,606,580.50 | 134,268,816.05 |
| III.Depreciationreserves | - | - | |||||
| 1.Beginningbalance | - | - | 2,901,082.61 | - | - | 2,901,082.61 | 2,901,082.61 |
| 2.Increasedamountoftheperiod | - | - | - | - | - | - | - |
| (1)Withdrawal | - | - | - | - | - | - | - |
| (2)increaseofbusinesscombination | - | - | - | - | - | - | - |
| 3.Decreasedamountoftheperiod | - | - | - | - | - | - | - |
| (1)Disposal | - | - | - | - | - | - | - |
| (2)decreaseoflosingcontrollingright | - | - | - | - | - | - | - |
| 4.Endingbalance | - | - | 2,901,082.61 | - | - | 2,901,082.61 | 2,901,082.61 |
| IV.Carryingvalue | - | - | |||||
| 1.Endingcarryingvalue | 399,878,521.97 | 42,125,490.21 | 146,296,459.69 | 104,387,587.51 | 45,088,626.96 | 337,898,164.37 | 737,776,686.34 |
| 2.Beginningcarryingvalue | 162,254,827.18 | - | 2,912,902.19 | - | 39,890,044.32 | 42,802,946.51 | 205,057,773.69 |
(2)LandUseRightwithCertificateofTitleUncompleted
| Item | Carryingvalue | Reason |
| LandusagerightofthesubsidiaryEconTechnologyA-18 | 9,209,966.67 | Underprocessing |
| LandusagerightofthesubsidiaryNanocrystalline | 5,456,515.11 | Underprocessing |
(3)SignificantIntangibleAssets
| Item | Endingcarryingvalue | Remainingamortizationperiod |
| FranchiserightsofsewagetreatmentinLaizhou | 104,387,587.51 | 23.50 |
| VariouspatentrightofJiangxiKonka | 101,647,058.82 | 5.67 |
| LandusagerightofXGY(2006)No.04049 | 73,587,031.11 | 37.75 |
| LandusagerightofGuangminglandparcelNo.A518-0103 | 39,503,358.75 | 25.33 |
| RighttousethetrademarkofFrestec | 39,866,666.67 | 9.58 |
(4)IntangibleAssetswithrestrictedownershiporusingright
| Item | Endingcarryingvalue | Reasons |
| LandusagerightofXingDaHongYe | 38,040,981.20 | Mortgageloanofland |
| LandusagerightofJiangxiKonka | 5,065,400.00 | Mortgageloanofland |
| LandusagerightofYinbinKonka | 14,101,553.20 | Landmortgageguarantee |
16.Goodwill(1)OriginalCarryingValueofGoodwill
| Nameoftheinvesteesortheeventsformedgoodwill | Beginningbalance | Increased | Decreased | Endingbalance | ||
| Formedfromthebusinesscombination | Other | Dispose | Other | |||
| AnhuiKonka | 3,597,657.15 | - | - | - | - | 3,597,657.15 |
| EconTechnology | - | 470,769,220.06 | - | - | - | 470,769,220.06 |
| Jiangxikonka | - | 340,111,933.01 | - | - | - | 340,111,933.01 |
| XingDaHongYe | - | 44,156,682.25 | - | - | - | 44,156,682.25 |
| Total | 3,597,657.15 | 855,037,835.32 | - | - | - | 858,635,492.47 |
(2)ProvisionsforGoodwillImpairment
| Nameoftheinvesteesortheeventsformedgoodwill | Beginningbalance | Increased | Decreased | Endingbalance | ||
| Withdrawal | Other | Dispose | Other | |||
| AnhuiKonka | - | - | - | - | - | - |
| EconTechnology | - | - | - | - | - | - |
| Jiangxikonka | - | - | - | - | - | - |
| XingDaHongYe | - | - | - | - | - | - |
| Total | - | - | - | - | - | - |
(3)ImpairmenttestofbusinessreputationIntheimpairmenttestofbusinessreputation,thewholeassetsandbusinessoftheacquiredcompaniesaretakenasanassetgroupforimpairmenttest.Themaincashinflowofthisassetgroupisindependentofthecashinflowofotherassetsorassetgroups,andthisassetgroupisconsistentwiththeassetgroupconfirmedonthepurchasedate.TherecoverableamountofEconTechnologyisdeterminedaccordingtothepresentvalueofexpectedfuturecashflows.FuturecashflowsaredeterminedbasedonthefinancialbudgetapprovedbytheManagementfortheperiodfrom2019to2023,withadiscountrateof14.06%.ThecashflowsofEconTechnologyover5yearsaremeasuredonthebasisofagrowthrateof0%.OtherkeyassumptionsusedinmeasuringfuturecashflowsincludeestimatedsalesandgrossprofitbasedonthepastperformanceoftheassetgroupandtheexpectationoftheManagementonmarketdevelopment.TheManagementbelievesthatnoreasonablechangeintheaboveassumptionswillleadtoaresultthatthetotalbookvalueofEconTechnologyexceedsitsrecoverableamount.TherecoverableamountofJiangxiKonkaisdeterminedaccordingtothepresentvalueofexpectedfuturecashflows.FuturecashflowsaredeterminedbasedonthefinancialbudgetapprovedbytheManagementfortheperiodfrom2019to2023,withadiscountrateof×%.ThecashflowsofJiangxiKonkaover5yearsaremeasuredonthebasisofagrowthrateof0%.OtherkeyassumptionsusedinmeasuringfuturecashflowsincludeestimatedsalesandgrossprofitbasedonthepastperformanceoftheassetgroupandtheexpectationoftheManagementonmarketdevelopment.TheManagementbelievesthatnoreasonablechangeintheaboveassumptionswillleadtoaresultthatthetotalbookvalueofJiangxiKonka
exceedsitsrecoverableamount.TherecoverableamountofXingDaHongYeisdeterminedaccordingtothepresentvalueofexpectedfuturecashflows.FuturecashflowsaredeterminedbasedonthefinancialbudgetapprovedbytheManagementfortheperiodfrom2019to2023,withadiscountrateof11.51%.ThecashflowsofXingDaHongYeover5yearsaremeasuredonthebasisofagrowthrateof0%.OtherkeyassumptionsusedinmeasuringfuturecashflowsincludeestimatedsalesandgrossprofitbasedonthepastperformanceoftheassetgroupandtheexpectationoftheManagementonmarketdevelopment.TheManagementbelievesthatnoreasonablechangeintheaboveassumptionswillleadtoaresultthatthetotalbookvalueofXingDaHongYeexceedsitsrecoverableamount.(4)TheimpactofimpairmenttestofbusinessreputationAccordingtotheresultofimpairmenttestofbusinessreputation,theCompanydidnotsufferanyimpairmentofbusinessreputationinthiscurrentyear.17.Long-termUnamortizedExpenses
| Item | Beginningbalance | Increasedamount | Amortizationamount | Otherdecreaseamount | Endingamount |
| Renovationcosts | 23,241,203.51 | 25,554,662.96 | 11,216,384.16 | 2,674,942.19 | 34,904,540.12 |
| Shoppeexpense | 56,402,256.28 | 58,885,461.34 | 52,649,531.01 | 1,270,114.37 | 61,368,072.24 |
| Other | 70,417,477.51 | 20,180,981.61 | 11,065,898.43 | 64,581,746.28 | 14,950,814.41 |
| Total | 150,060,937.30 | 104,621,105.91 | 74,931,813.60 | 68,526,802.84 | 111,223,426.77 |
18.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities(1)DeferredIncomeTaxAssetswithoutOffset
| Item | Endingbalance | Beginningbalance | ||
| Deductibletemporarydifference | Deferredincometaxassets | Deductibletemporarydifference | Deferredincometaxassets | |
| Deductiblelosses | 1,358,336,470.51 | 336,401,597.67 | 2,250,284.11 | 364,943.32 |
| Assetsimpairmentprovision | 936,009,764.81 | 226,316,093.63 | 796,345,288.62 | 197,835,345.27 |
| Deferredincome | 85,456,786.55 | 20,389,065.68 | 106,943,380.58 | 25,500,563.17 |
| Item | Endingbalance | Beginningbalance | ||
| Deductibletemporarydifference | Deferredincometaxassets | Deductibletemporarydifference | Deferredincometaxassets | |
| Accruedexpenses | 72,865,789.50 | 17,320,299.04 | 118,441,697.07 | 28,839,536.61 |
| Unrealizedinternalsalesprofits | 35,916,413.76 | 8,979,103.44 | 32,715,116.95 | 8,178,779.24 |
| Changesinfairvalueoftransactionalfinancialliabilities | --- | --- | 47,482,470.52 | 11,870,617.63 |
| others | 123,082,867.34 | 30,027,794.84 | 141,409,911.41 | 35,352,477.88 |
| Total | 2,611,668,092.47 | 639,433,954.30 | 1,245,588,149.26 | 307,942,263.12 |
(2)ListsofDeferredIncomeTaxLiabilitieswithoutOffset
| Item | Endingbalance | Beginningbalance | ||
| Taxabletemporarydifference | Deferredincometaxliabilities | Taxabletemporarydifference | Deferredincometaxliabilities | |
| Estimatedaddedvaluenotunderthesamecontrol | 597,961,840.34 | 119,325,356.84 | --- | --- |
| Prepaidinterest | 71,719,199.88 | 17,929,799.97 | 45,386,505.16 | 11,346,626.29 |
| Accelerateddepreciationoffixedassets | 5,929,959.47 | 889,493.92 | 6,889,703.33 | 1,033,455.50 |
| Changeinfairvalueoftradingfinancialassets | 3,005,381.67 | 751,345.42 | --- | --- |
| Prepaidtaxes | --- | --- | 1,026,206.42 | 256,551.61 |
| Other | 8,496,388.76 | 2,124,097.19 | --- | --- |
| Total | 687,112,770.12 | 141,020,093.34 | 53,302,414.91 | 12,636,633.40 |
(3)ListofUnrecognizedDeferredIncomeTaxAssets
| Item | Endingbalance | Beginningbalance |
| Deductiblelosses | 2,688,310,555.91 | 1,085,593,457.20 |
| Deductibletemporarydifference | 294,734,548.10 | 132,372,523.56 |
| Total | 2,983,045,104.01 | 1,217,965,980.76 |
19.OtherNon-currentAssets
| Item | Endingbalance | Beginningbalance |
| Item | Endingbalance | Beginningbalance |
| Orientkangjiano.1(zhuhai)privateequityinvestmentfund(limitedpartnership) | 158,810,750.31 | - |
| Entrustedloans | 120,000,000.00 | 20,000,000.00 |
| Constructionofgovernmentprojects | 41,410,334.97 | - |
| Prepaymentforhouse-purchase | 10,099,279.84 | 8,167,948.00 |
| Prepaymentforequipment | 6,497,317.32 | 1,122,880.00 |
| Other | 12,193.56 | - |
| Total | 337,477,690.39 | 29,290,828.00 |
20.Short-termLoans
| Item | Endingbalance | Beginningbalance |
| Creditloan | 12,471,968,199.93 | 6,033,663,163.14 |
| Guaranteedloan | 1,113,964,731.70 | - |
| Mortgageloan | 30,000,000.00 | - |
| Pledgedloan | - | 893,808,874.21 |
| Aloansecured,pledged,orpledged（note②、③） | 268,200,000.00 | - |
| Total | 13,884,132,931.63 | 6,927,472,037.35 |
Note:①withthebookvalueofRMB129,749,184.23asthecollateralofthesecondphaseplant,dongguankangjiaobtainedtheloanofRMB30,000,000.00fromthedongguanbranchofindustrialbankco.,LTD.②WiththebookvalueofRMB38,965,300.00forplantandequipment,thelanduserightofRMB5,065,400.00andtheequityofjiangxixinzixinrealestateco.,ltd.underthenameofminorityshareholdersascollateral,zhuxinming,zengxiaoyingandzhuqingmingprovidejointandseveralliabilityguarantee,andnano-microcrystalandxinfengmicrocrystalprovidethehighestguarantee.ThetotalamountoftheloanisRMB128,500,000.00fromthesalesdepartmentofjiangxiyongxiururalcommercialbankco.,LTD.,agriculturalbankofChinayongxiucountybranchandjiujiangbranchofbankofcommunicationsrespectively..③XingdahongyetobookvalueRMB58241167indexoftheworkshop,thelanduserightof
$38040981.20,RMB19800000.00unitcertificatesofdepositandtheminorityshareholder'snamepropertyascollateral,shenzhencityxingdacircuitboardco.,LTD.,ze-honghu,JiangJiezhen,DaiRongxing,HuLiying,DaiYanhuaprovidemaximumamountguarantee,respectivelyfromthebankofguangzhou,zhongshan,theagriculturalbankofChinazhongshanruralcommercialbankbranchesandmoundmoundsandsandbranchloanborrowingamountRMB139700000.00.21.FinancialLiabilitiesatFairValuethroughProfitorLoss
| Item | Endingbalance | Beginningbalance |
| Lossofforwardexchangecontract | 2,459,603.25 | 47,482,470.50 |
| Total | 2,459,603.25 | 47,482,470.50 |
22.NotesandAccountsPayable
| Category | Endingbalance | Beginningbalance |
| Notespayable | 862,330,689.47 | 541,175,312.09 |
| Accountspayable | 4,362,723,050.33 | 3,612,216,266.59 |
| Total | 5,225,053,739.80 | 4,153,391,578.68 |
(1)NotesPayable
| Category | Endingbalance | Beginningbalance |
| Tradeacceptance | 131,907,909.16 | 133,211,455.00 |
| Bank’sacceptancebill | 730,422,780.31 | 407,963,857.09 |
| Total | 862,330,689.47 | 541,175,312.09 |
(2)AccountsPayable
| Item | Endingbalance | Beginningbalance |
| Within1year | 4,041,645,573.26 | 3,519,530,711.60 |
| 1to2years | 262,217,987.99 | 53,966,422.15 |
| 2to3years | 12,677,653.94 | 5,991,933.36 |
| Over3years | 46,181,835.14 | 32,727,199.48 |
| Total | 4,362,723,050.33 | 3,612,216,266.59 |
(3)SignificantAccountsPayableAgingoverOneYear
| Item | Endingbalance | Unpaid/Un-carry-overreason |
| Estimatedprojectfunds | 217,495,088.56 | Settlementconditionsnotmet |
| Total | 217,495,088.56 |
23.AdvancesfromCustomers(1)ListofAdvancesfromCustomers
| Item | Endingbalance | Beginningbalance |
| Within1year | 654,982,234.51 | 571,998,516.53 |
| 1to2years | 32,910,085.56 | 36,662,083.53 |
| 2to3years | 13,172,633.37 | 14,937,831.50 |
| Over3years | 22,162,575.76 | 16,912,352.61 |
| Total | 723,227,529.20 | 640,510,784.17 |
(2)SignificantAdvancesfromCustomersAgingoverOneYear
| Item | Endingbalance | Unpaid/Un-carry-overreason |
| DongguanKonkaMouldPlasticCo.,Ltd | 24,974,635.75 | |
| ShenzhenKonkaVideo&CommunicationSystemsEngineeringCo.,Ltd. | 15,357,854.41 | |
| Total | 40,332,490.16 | —— |
24.PayrollPayable
(1)ListofPayrollPayable
| Item | Beginningbalance | Increase | Increasebymerger | Decrease | Decreasebylosingcontrollingright | Endingbalance |
| I.Short-termsalary | 289,046,664.85 | 1,629,631,704.71 | 19,030,255.97 | 1,553,586,493.74 | 8,837,938.67 | 375,284,193.12 |
| II.Post-employmentbenefit-definedcontributionplans | 2,323,632.82 | 148,304,799.23 | 6,597.36 | 149,084,438.77 | 328,216.05 | 1,222,374.59 |
| III.Terminationbenefits | - | 9,207,455.27 | - | 9,207,455.27 | - | - |
| IV.Currentportionofotherbenefits | - | - | - | - | - | - |
| Total | 291,370,297.67 | 1,787,143,959.21 | 19,036,853.33 | 1,711,878,387.78 | 9,166,154.72 | 376,506,567.71 |
(2)ListofShort-termSalary
| Item | Beginningbalance | Increase | Increasebymerger | Decrease | Decreasebylosingcontrollingright | Endingbalance |
| 1.Salary,bonus,allowance,subsidy | 275,524,552.33 | 1,430,621,311.75 | 18,757,618.25 | 1,356,836,794.50 | 8,408,941.91 | 359,657,745.92 |
| 2.Employeewelfare | 4,562,983.10 | 60,231,443.27 | - | 59,170,452.19 | 3,235.51 | 5,620,738.67 |
| 3.Socialinsurance | 2,816,379.51 | 64,388,768.20 | 3,199.92 | 63,924,256.44 | 145,919.69 | 3,138,171.50 |
| Ofwhich:1.Medicalinsurancepremiums | 815,364.61 | 55,260,964.35 | 2,529.60 | 55,188,962.37 | 121,485.35 | 768,410.84 |
| Work-relatedinjuryinsurance | 247,215.23 | 3,785,199.77 | 352.80 | 3,857,848.63 | 14,575.35 | 160,343.82 |
| Item | Beginningbalance | Increase | Increasebymerger | Decrease | Decreasebylosingcontrollingright | Endingbalance |
| Maternityinsurance | 1,753,799.67 | 5,342,604.08 | 317.52 | 4,877,445.44 | 9,858.99 | 2,209,416.84 |
| 4.Housingfund | 299,531.17 | 41,957,039.83 | 41,637,147.87 | 73,924.63 | 545,498.50 | |
| 5.Laborunionbudgetandemployeeeducationbudget | 3,624,491.64 | 11,173,641.63 | 269,437.80 | 9,280,552.32 | 205,916.93 | 5,581,101.82 |
| 6.Short-termabsencewithpayment | - | - | - | - | - | - |
| 7.Short-termprofitsharingplan | - | - | - | - | - | - |
| 8.Other | 2,218,727.10 | 21,259,500.03 | - | 22,737,290.42 | - | 740,936.71 |
| Total | 289,046,664.85 | 1,629,631,704.71 | 19,030,255.97 | 1,553,586,493.74 | 8,837,938.67 | 375,284,193.12 |
(3)ListofDefinedContributionPlan
| Item | Beginningbalance | Increase | Increasebymerger | Decrease | Decreasebylosingcontrollingright | Endingbalance |
| 1.Basicpensionbenefits | 2,096,931.52 | 144,568,375.95 | 6,350.40 | 145,214,564.00 | 309,294.17 | 1,147,799.70 |
| 2.Unemploymentinsurance | 226,701.30 | 3,736,423.28 | 246.96 | 3,869,874.77 | 18,921.88 | 74,574.89 |
| 3.Annuity | - | - | - | - | - | - |
| Total | 2,323,632.82 | 148,304,799.23 | 6,597.36 | 149,084,438.77 | 328,216.05 | 1,222,374.59 |
TheCompany,inlinewiththerequirement,participatetheendowmentinsurance,unemploymentinsuranceschemeandsoon,accordingtothescheme,theCompanymonthlypaytotheschemeinlinewithrequirementsoflocalgovernment,exceptthemonthlypayment,theCompanyno
longershoulderthefurtherpaymentobligation,therelevantexpenseoccurredwasrecordedintocurrentprofitsandlossesorrelatedassetscosts.
25.TaxesPayable
| Item | Endingbalance | Beginningbalance |
| VAT | 127,267,736.84 | 47,749,976.31 |
| Corporateincometax | 111,659,382.84 | 1,124,832,572.96 |
| Fundfordisposingabandonedappliancesandelectronicproducts | 9,508,557.03 | 4,155,984.89 |
| Landusetax | 6,842,959.97 | 4,749,633.12 |
| Realestatetax | 3,390,503.70 | 1,855,882.68 |
| Businesstax | 3,162,037.00 | 1,851,821.21 |
| Tariff | 2,867,887.18 | 3,451,843.43 |
| Personalincometax | 2,444,284.96 | 4,802,640.61 |
| Urbanmaintenanceandconstructiontax | 1,757,048.49 | 3,570,618.46 |
| Stampduty | 16,496,706.00 | 23,666,123.67 |
| EducationfeesandlocaleducationSurcharge | 1,057,937.59 | 344,630.28 |
| Floodcontrolfund,fundforembankment,fundforwaterconservancyandfundforrivermanagement | 401,823.10 | 401,823.10 |
| LandVAT | - | 104,967,760.07 |
| Others | 1,147,327.74 | 167,783.74 |
| Total | 288,004,192.44 | 1,326,569,094.53 |
26.OtherPayables
| Item | Endingbalance | Beginningbalance |
| Interestpayable | 27,230,631.41 | 35,723,963.94 |
| Dividendpayable | - | - |
| Otherpayables | 1,997,426,646.33 | 1,608,359,305.87 |
| Total | 2,024,657,277.74 | 1,644,083,269.81 |
(1)InterestPayable
| Item | Endingbalance | Beginningbalance |
| Item | Endingbalance | Beginningbalance |
| Interestonborrowings | 27,230,631.41 | 35,723,963.94 |
| Total | 27,230,631.41 | 35,723,963.94 |
(2)OtherPayables
?ListedbyNatureofAccount
| Item | Endingbalance | Beginningbalance |
| Accruedexpenses | 971,679,417.48 | 826,839,671.60 |
| Come-and-gomoney | 280,592,078.50 | 222,637,701.31 |
| Equitytransferpayment | 380,180,000.00 | - |
| deposit | 196,746,104.46 | 472,308,401.08 |
| Relatedpartyborrowing | 108,233,202.82 | - |
| Generationofadvances | 49,796,310.13 | 3,606,727.50 |
| other | 10,199,532.94 | 82,966,804.38 |
| Total | 1,997,426,646.33 | 1,608,359,305.87 |
②SignificantOtherPayablesAgingoverOneYear
| Item | Endingbalance | Unpaid/Un-carry-overreason |
| Energysavingsubsidies | 89,960,000.00 | Expectedtobereturned |
| Cashdeposit | 83,666,951.46 | Unsettled |
| Total | 173,626,951.46 | — |
27.CurrentPortionofNon-currentLiabilities
| Item | Endingbalance | Beginningbalance |
| Currentportionoflong-termborrowings(NoteVI-28) | 40,000,000.00 | - |
| Currentportionoflong-termpayables(NoteVI-29) | 111,792,404.13 | 374,358.99 |
| Total | 151,792,404.13 | 374,358.99 |
28.Long-termBorrowings
| Item | Endingbalance | Beginningbalance |
| Creditloan | 245,000,000.00 | 167,000,000.00 |
| Guaranteeloan(Note①) | 50,000,000.00 | - |
| Pledgeloan(Note②) | 150,000,000.00 | - |
| Minus:theportionduewithinoneyear(noteVI-27) | 40,000,000.00 | |
| Total | 445,000,000.00 | 167,000,000.00 |
Note:①Sichuankangjiatookthelanduserightwiththebookvalueof14,101,553.20yuanasthemortgage,andcommunicationtechnologyprovidedjointandseveralliabilityguaranteefortheloan,andobtainedtheentrustedloanof50millionyuanfromsichuangangronginvestmentanddevelopmentgroupco.,LTD.②YiKangrushanmountainfsekoenvironmentalcontroltechnologyofsubsidiaryco.,LTD.TheformationofrushancitybureauofgovernmentprocurementofpledgeofaccountsreceivableasappliesforloantothebankofChinaeverbright,yantaieconomicdevelopmentzonebranchlimitistenthousandyuanRMB29000.00,loantermonDecember292016solsticeDecember28,2026,duringthepledgefor29December2016solsticeDecember28,2026;Meanwhile,icomtechnologywillprovidejointandseveralliabilityguarantee.AsofDecember31,2018,theactualamountoftheloanisRMB15,000.00million.29.Long-termPayables
| Item | Endingbalance | Beginningbalance |
| Accruedfinancingleaseoutlay | 240,167,001.54 | 435,897.45 |
| Less:currentportion(NoteVI-27) | 111,792,404.13 | 374,358.99 |
| Total | 128,374,597.41 | 61,538.46 |
30.Long-termPayrollPayable(1)ListofLong-termPayrollPayable
| Item | Endingbalance | Beginningbalance |
| I.Terminationbenefits-netliabilitiesofdefinedcontributionplans | 8,792,614.98 | 13,361,821.86 |
| II.Terminationbenefits | - | - |
| III.Otherlongtermwelfare | - | - |
| Total | 8,792,614.98 | 13,361,821.86 |
(2)ChangesinDefinedBenefitPlans①Obligationpresentvalueofdefinedbenefitplans:
| Item | Reportingperiod | Sameperiodoflastyear |
| I.Beginningbalance | 13,361,821.86 | 18,151,659.90 |
| II.Definedbenefitcostrecordedintocurrentprofitsandlosses | - | - |
| 1.Currentservicecost | - | - |
| Item | Reportingperiod | Sameperiodoflastyear |
| 2.Previousservicecost | - | - |
| 3.Settlementgains(loss“－”) | - | - |
| 4.Netinterest | - | - |
| III.Thecostofdefinedbenefitrecordedintoothercomprehensiveincome | - | - |
| 1.Actuarialgains(loss“-“) | - | - |
| IV.Otherchanges | 4,569,206.88 | 4,789,838.04 |
| 1.Considerationpaidwhensettled | - | - |
| 2.Welfarepaid | 4,569,206.88 | 4,789,838.04 |
| V.Endingbalance | 8,792,614.98 | 13,361,821.86 |
②Notestotheinfluenceofthecontentandrelatedriskofdefinedbenefitpensionschemestothefuturecashflows,timeanduncertaintyoftheCompany:
Duetoupgradingandreconstructionofcurrentworksitesofthesubsidiary,communicationtechnology,itistoadjustthelaborrelationsaccordingtoImplementationMeasuresforAccompanyingEmployeesinmanufacturingsystemofShenzhenKonkaTelecommunicationTechnologyCo.,LtdonthepremisetobalancetheCompany’sandemployees’benefitsandvoluntaryselection,TelecommunicationTechnologyprovidesearlyretirementplansforsenioremployees(employedbefore31December1990andsignednon-fixedtermlaborcontractwiththeCompanyorCommunicationTechnology).TheaccumulativecompensationpaidtotheinternalearlyretirementpensionsinfutureyearisRMB34,931,714.55,theCompanyinlinewithAgreementofInternalEarlyRetirementPension,inlinewiththestandardofsalaryremainingthesame,turnoverrateof0,themortalityrateof,fixstandardofsocialsecuritybasepaymentremainingthesametotestthepresentworthofdefinedbenefitplans.Theactualpaymentfortheemployeeisinfluencebytheactualturnoverrate,deathrateandthechangesofminimumcardinalityofsocialsecurity.③NotestoActuarialAssumptionsandSensibilityAnalysisResultofDefinedBenefitPensionSchemes
| Significantassumptionsestimated | Period-endofReportingPeriod | Period-endoflastyear |
| Discountrate | Treasurybondrateinsameperiod | — |
| Deathrate | 0% | — |
| Expectedaveragelifeexpectancy | Overlegalemeritusage | — |
| Expectedcompensationgrowthrate | 0% | — |
31.Provisions
| Item | Beginningbalance | Endingbalance | Reasonforformation |
| Pendinglitigations | 4,711,597.59 | 21,566,306.86 | Litigation(Note) |
| Other | 1,470,267.51 | 206,591.51 | Contractconsideration |
| Total | 6,181,865.10 | 21,772,898.37 | —— |
Note:In2016,JiangxiLongjiConstructionEngineeringCo.,Ltd.filedalawsuitwithNanchangIntermediatePeople'sCourtagainstJiangxiXinfengMicrocrystallineJadeCo.,Ltd.overthedisputearisenfromaconstructioncontract.Accordingtothefirst-instancedecisionmadebyNanchangIntermediatePeople'sCourt,JiangxiXinfengMicrocrystallineJadeCo.,Ltd.shouldcompensateJiangxiLongjiforthelossofRMB19,741,456.02andtheinteresttherefrom(InterestwascalculatedaccordingtothesimilarlendingrateforthesameperiodissuedbythePeople'sBankofChinabasedontheprincipleofRMB19,741,456.02fromNovember24,2016tothedatewhentheprincipalamountwaspaidoff).JiangxiXinfengMicrocrystallineJadeCo.,Ltd.appealedtotheHigherPeople'sCourtofJiangxiProvince.AsofDecember31,2018,theexpectedlossesrelatedtothelawsuitsufferedbytheCompanyareRMB21,566,306.86.32.DeferredIncome
| Item | Beginningbalance | Increase | Decrease | Otherdecrease | Endingbalance | Reasonforformation |
| Governmentsubsidies | 130,049,911.87 | 13,283,000.00 | 29,357,262.38 | 1,076,521.25 | 112,899,128.24 | Relatedtoassets/income |
| Total | 130,049,911.87 | 13,283,000.00 | 29,357,262.38 | 1,076,521.25 | 112,899,128.24 | — |
Ofwhich,itemsrelatedtogovernmentsubsidies:
| Item | Beginningbalance | Amountofnewlysubsidy | Amountrecordedintonon-operatingincomeintheReportingPeriod | AmountrecordedintootherincomeintheReportingPeriod | Otherchanges | Endingbalance | Relatedtoassets/relatedincome |
| SmartTVindustrialchainofKonkaGroupCo.,Ltd | 19,848,500.00 | - | - | 4,494,000.00 | - | 15,354,500.00 | Relatedtoassets |
| R&DofdoubleHDROLEDsmarttelevisionandindustrialization | 13,300,000.00 | - | - | - | - | 13,300,000.00 | Relatedtoassets |
| DecorationsubsidyforKonkaZhifuLifeScienceInnovationCenter | - | 10,000,000.00 | - | 1,499,999.94 | - | 8,500,000.06 | Relatedtoassets |
| Research,productionandindustrializationsmartterminalsystemofnext-generationinternet | 7,761,844.66 | - | - | 1,981,747.56 | - | 5,780,097.10 | Relatedtoassets |
| Research,developmentandindustrializationofnewsmartTVofman-machineinteraction | 5,256,893.21 | - | - | 3,679,825.38 | - | 1,577,067.83 | Relatedtoassets |
| InvestmentitemslocatedintheweaksectorofShenzhenindustriallinkin2017 | 4,500,000.00 | - | - | - | - | 4,500,000.00 | Relatedtoassets |
| KonkaSmartHomeProjectofConstructingCloudSmartControlPlatform | 3,620,000.00 | - | - | - | - | 3,620,000.00 | Relatedtoassets |
| Laboratoryprojectofnext-generationKonkamultimediaterminaltechnology | 4,500,000.02 | - | - | 999,999.96 | - | 3,500,000.06 | Relatedtoassets |
| Item | Beginningbalance | Amountofnewlysubsidy | Amountrecordedintonon-operatingincomeintheReportingPeriod | AmountrecordedintootherincomeintheReportingPeriod | Otherchanges | Endingbalance | Relatedtoassets/relatedincome |
| ProjectofdisplayterminalsmartplantwithnewpatternbasedonNB-IOT | 3,822,000.00 | - | - | 819,000.00 | - | 3,003,000.00 | Relatedtoassets |
| FundsofShenzhenIndustrialDesignCenterfromShenzhenEconomic,TradeandInformationin2015 | 3,000,000.00 | - | - | - | - | 3,000,000.00 | Relatedtoassets |
| Postrewardsandsubsidiesfortechnicaltransformationofindustrialenterprisesin2016 | 3,281,040.00 | - | - | 546,840.00 | - | 2,734,200.00 | Relatedtoassets |
| Research,developmentandindustrializationofdigitalproductsofsynergeticinterconnection | 2,600,000.00 | - | - | - | - | 2,600,000.00 | Relatedtoassets |
| AVS/DRAterminalandmatchedcorechipR&D | 5,620,000.00 | - | - | 3,184,666.78 | - | 2,435,333.22 | Relatedtoassets |
| Industrializationofmobileinternetand4thgenerationmobilecommunicationindustry | 2,754,867.45 | - | - | 535,790.04 | - | 2,219,077.41 | Relatedtoassets |
| Comprehensiveintegrationandinnovationprojectofleanmanufacturingimplementationsystem | 2,100,000.00 | - | - | - | - | 2,100,000.00 | Relatedtoassets |
| R&Dandindustrializationofnewapplicationservicesystemofmobilesmartterminal | 2,809,233.44 | - | - | 795,649.92 | - | 2,013,583.52 | Relatedtoassets |
| Designandachievement | 1,960,000.00 | - | - | - | - | 1,960,000.00 | Relatedtoassets |
| Item | Beginningbalance | Amountofnewlysubsidy | Amountrecordedintonon-operatingincomeintheReportingPeriod | AmountrecordedintootherincomeintheReportingPeriod | Otherchanges | Endingbalance | Relatedtoassets/relatedincome |
| transformationofsurfaceOLEDV9XseriesTV | |||||||
| Provincialmajorspecialprojectsin2017 | 2,360,000.00 | - | - | 480,000.00 | - | 1,880,000.00 | Relatedtoassets |
| SpecialfundsofprovincialstrategicemergingindustryofDongguanFinanceBureau | 2,400,000.00 | - | - | 600,000.00 | - | 1,800,000.00 | Relatedtoassets |
| ProjectsubsidyforveinR&Dcenter | - | 1,750,000.00 | - | - | - | 1,750,000.00 | Relatedtoincome |
| Wholemachineintegrationofmodule | 1,875,000.00 | - | - | 300,000.00 | - | 1,575,000.00 | Relatedtoassets |
| Glasses-free3DSmartLCDTVwithMulti-viewandHighDefinition | 1,500,000.00 | - | - | - | - | 1,500,000.00 | Relatedtoassets |
| EmbeddedOSdevelopmentandterminalsystemdevelopmentforTVapplication | 1,951,430.02 | - | - | 459,159.96 | - | 1,492,270.06 | Relatedtoassets |
| Real-timeSynthesisandPilotofTrue3DVideowithContinuousViewpoint | 1,420,000.00 | - | - | - | - | 1,420,000.00 | Relatedtoassets |
| R&DandindustrializationofInformationTerminalbasedontheIGRS | 1,400,000.00 | - | - | - | - | 1,400,000.00 | Relatedtoassets |
| R&DofUSTLaserProjectionSmartTV | 1,500,000.00 | - | - | 125,000.00 | - | 1,375,000.00 | Relatedtoassets |
| R&Dandindustrializationof | 1,320,000.00 | - | - | - | - | 1,320,000.00 | Relatedtoassets |
| Item | Beginningbalance | Amountofnewlysubsidy | Amountrecordedintonon-operatingincomeintheReportingPeriod | AmountrecordedintootherincomeintheReportingPeriod | Otherchanges | Endingbalance | Relatedtoassets/relatedincome |
| operationsystemforexploitingusersbasedonbigdata | |||||||
| R&Dofkeytechnologiesofinformationsafetysystemformobilesmartterminal | 2,400,000.00 | - | - | 1,084,812.96 | - | 1,315,187.04 | Relatedtoassets |
| R&Dandengineeringof3DTVTerminal | 1,300,000.00 | - | - | - | - | 1,300,000.00 | Relatedtoassets |
| Research,developmentandindustrializationprojectofnewtwo-channel3DsmartTV | 1,590,166.71 | 405,999.96 | 1,184,166.75 | Relatedtoassets | |||
| Specialfundof2010-2012industrialtechnology | 1,680,000.00 | - | - | 420,000.00 | - | 1,260,000.00 | Relatedtoassets |
| ProvincialfiscalsubsidiesforR&DofGuangdongenterprisesin2016 | 1,375,319.98 | - | - | 229,220.04 | - | 1,146,099.94 | Relatedtoassets |
| CentralinfrastructureinvestmentbudgetforpremilinaryworkofPPPproject | - | 1,000,000.00 | - | - | - | 1,000,000.00 | Relatedtoassets |
| SatelliteReceivingFacilitybasedonsafeandreliablechips | 1,000,000.00 | - | - | - | - | 1,000,000.00 | Relatedtoassets |
| Specialfundforindustrialstructuraladjustment | 1,199,999.88 | - | - | 200,000.04 | - | 999,999.84 | Relatedtoassets |
| Postrewardsandsubsidiesreceivedfortechnical | 1,100,220.00 | - | - | 183,369.96 | - | 916,850.04 | Relatedtoassets |
| Item | Beginningbalance | Amountofnewlysubsidy | Amountrecordedintonon-operatingincomeintheReportingPeriod | AmountrecordedintootherincomeintheReportingPeriod | Otherchanges | Endingbalance | Relatedtoassets/relatedincome |
| transformationofindustrialenterprisesin2016 | |||||||
| Research,developmentandindustrializationofMajortechnologyofLEDbacklightFPTV | 1,750,000.13 | - | - | 999,999.96 | - | 750,000.17 | Relatedtoassets |
| SmartTVandsystemsupportingplatformofthreenetworkscombination | 1,066,666.76 | - | - | 399,999.96 | - | 666,666.80 | Relatedtoassets |
| SubsidyforR&DinstrumentfromDepartmentofScienceandTechnologyofAnhuiProvince | - | 225,000.00 | - | 3,750.00 | - | 221,250.00 | Relatedtoassets |
| Provincialspecialfundforworkrelatedtointellectualproperty | - | 200,000.00 | - | - | - | 200,000.00 | Relatedtoincome |
| Transformationsubsidyforenvironmentalprotectionproject | - | 60,000.00 | - | 1,000.00 | - | 59,000.00 | Relatedtoassets |
| SubsidyforR&Dinstrument | - | 48,000.00 | - | 800.00 | - | 47,200.00 | Relatedtoassets |
| Developmentsubsidiesfortouristresortin2014 | 1,094,583.35 | - | - | 18,499.98 | 1,076,083.37 | - | Relatedtoassets |
| Othergovernmentsubsidiesrelatedtoincome | 1,429,395.04 | - | - | 486,318.96 | 437.88 | 942,638.20 | Relatedtoincome |
| Othergovernmentsubsidiesrelatedtoassets | 10,602,751.22 | - | - | 4,421,811.02 | - | 6,180,940.20 | Relatedtoassets |
| Total | 130,049,911.87 | 13,283,000.00 | - | 29,357,262.38 | 1,076,521.25 | 112,899,128.24 |
33.ShareCapital
| Item | Beginningbalance | Increase/decrease(+/-) | Endingbalance | ||||
| Newsharesissued | Bonusshares | Bonusissuefromprofit | Other | Subtotal | |||
| Thesumofshares | 2,407,945,408.00 | - | - | - | - | - | 2,407,945,408.00 |
34.CapitalReserves
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Capitalpremium | 7,393,378.55 | - | - | 7,393,378.55 |
| Othercapitalreserves | 97,338,863.75 | 120,473,886.76 | 16,849,504.85 | 200,963,245.66 |
| Total | 104,732,242.30 | 120,473,886.76 | 16,849,504.85 | 208,356,624.21 |
Note:Duetothelossofcontrol,thedisposalofpartoftheequityofE2inforesultedinanincreaseofRMB120,473,886.76inothercapitalreserves;duetothedisposalofpartoftheequityofKaikaiShijie,plasticproductsandChongqingQingjia,thecapitalreservewasreducedbyRMB10,707,832.18;duetochangesinotherowners'equityotherthannetprofitorlossofGuangdongChutianDragonSmartCardCo.,Ltd.andShenzhenRF-LINKTechnologyCo.,Ltd.,othercapitalreserveshavereducedbyRMB6,141,672.67.
35.OtherComprehensiveIncome
| Item | Beginningbalance | ReportingPeriod | Endingbalance | ||||
| IncomebeforetaxationintheCurrentPeriod | Less:recordedinothercomprehensiveincomeinpriorperiodandtransferredinprofitorlossintheCurrentPeriod | Less:Incometaxexpense | AttributabletoownersoftheCompanyastheparentaftertax | Attributabletonon-controllinginterestsaftertax | |||
| I.Itemsthatwillnotbereclassifiedtoprofitorloss | - | - | - | - | - | - | - |
| II.Itemsthatmaysubsequentlybereclassifiedtoprofitorloss | 3,697,458.95 | -12,596,094.90 | - | -10,447.36 | -14,235,678.03 | 1,650,030.49 | -10,538,219.08 |
| Ofwhich:Shareofothercomprehensiveincomeofinvesteesthatwillbereclassifiedintoprofitorlossunderequitymethod | -3,138,048.04 | 740,697.08 | - | - | 740,697.08 | - | -2,397,350.96 |
| Gain/Lossonchangesinfairvalueofavailable-for-salefinancialassets | 31,342.08 | -41,789.44 | - | -10,447.36 | -31,342.08 | - | - |
| Differencesarisingfromtranslationofforeigncurrency-denominatedfinancialstatements | 6,804,164.91 | -13,295,002.54 | - | - | -14,945,033.03 | 1,650,030.49 | -8,140,868.12 |
| Totalofothercomprehensiveincome | 3,697,458.95 | -12,596,094.90 | - | -10,447.36 | -14,235,678.03 | 1,650,030.49 | -10,538,219.08 |
36.SurplusReserves
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Statutorysurplusreserves | 963,582,609.22 | 9,919,910.40 | - | 973,502,519.62 |
| Discretionalsurplusreserves | 254,062,265.57 | - | - | 254,062,265.57 |
| Total | 1,217,644,874.79 | 9,919,910.40 | - | 1,227,564,785.19 |
Notes:BasedontheregulationsoftheCorporationLawandConstitution,theCompanyshouldwithdraw10%ofthestatutorysurplusreservesaccordingtothenetprofits.Iftheaccumulatedamountofthestatutorysurplusreservesexceededthe50%oftheregisteredcapital,theCompanycouldnomorewithdraw.TheCompanycanwithdrawthediscretionalsurplusreservesafterwithdrawingthestatutorysurplusreserves.Thediscretionalsurplusreservescanbeusedtomakeupforthepreviouslossesortoincreasesharecapitalonceapproved.37.RetainedEarnings
| Item | 2018 | 2017 |
| Beginningbalanceofretainedearningsbeforeadjustments | 4,260,125,492.57 | -427,163,254.63 |
| Totalbeginningbalanceofretainedearningsbeforeadjustments(increase+,decrease-) | - | - |
| Beginningbalanceofretainedearningsafteradjustments | 4,260,125,492.57 | -427,163,254.63 |
| Add:NetprofitattributabletoownersoftheCompanyastheparent | 411,289,744.68 | 5,057,025,155.71 |
| Less:Withdrawalofstatutorysurplusreserves | 9,919,910.40 | 369,736,408.51 |
| Withdrawalofdiscretionalsurplusreserves | - | - |
| Dividendofordinarysharespayable | 390,087,134.64 | - |
| Endingretainedearnings | 4,271,408,192.21 | 4,260,125,492.57 |
38.OperatingRevenueandCostofSales(1)OperatingRevenueandCostofSales
| Item | ReportingPeriod | SamePeriodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Mainoperations | 44,539,559,406.49 | 41,961,861,198.85 | 29,801,098,730.20 | 26,643,986,715.11 |
| Otheroperations | 1,587,237,934.84 | 1,265,752,715.60 | 1,426,664,519.51 | 1,144,998,564.69 |
| Total | 46,126,797,341.33 | 43,227,613,914.45 | 31,227,763,249.71 | 27,788,985,279.80 |
(2)MainOperations(Classifiedbyproduct)
| Productname | ReportingPeriod | Sameperiodoflastyear |
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| ColorTVbusiness | 9,892,486,636.93 | 8,689,731,404.20 | 11,994,950,476.66 | 10,062,760,446.56 |
| Mobilephonebusiness | 331,298,592.29 | 327,425,343.91 | 918,711,012.38 | 827,228,372.16 |
| Consumerappliancesbusiness | 2,127,731,143.29 | 1,767,282,597.98 | 1,737,464,511.08 | 1,404,308,959.94 |
| Environmentalprotectionbusiness | 3,020,514,260.13 | 2,634,491,782.63 | - | - |
| Supplychaintradebusiness | 28,348,817,442.89 | 28,068,819,224.05 | 13,652,512,654.75 | 13,501,073,391.55 |
| Other | 818,711,330.96 | 474,110,846.08 | 1,497,460,075.33 | 848,615,544.90 |
| Total | 44,539,559,406.49 | 41,961,861,198.85 | 29,801,098,730.20 | 26,643,986,715.11 |
(3)MainOperations(Classifiedbyarea)
| Area | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Domesticsales | 15,280,905,528.09 | 13,378,114,102.53 | 14,605,075,686.89 | 12,525,699,043.61 |
| Overseassales | 29,258,653,878.40 | 28,583,747,096.32 | 15,196,023,043.31 | 14,118,287,671.50 |
| Total | 44,539,559,406.49 | 41,961,861,198.85 | 29,801,098,730.20 | 26,643,986,715.11 |
(4)OtherOperations(Classifiedbyproduct)
| Productname | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Saleofmaterials | 1,061,823,529.60 | 1,125,521,149.81 | 655,914,026.56 | 685,360,932.34 |
| Maintenancecost | 14,768,368.18 | 3,339,815.57 | 8,173,452.85 | 5,530,168.79 |
| Saleofwaste | 15,009,489.99 | 666,256.53 | 11,089,872.64 | 2,561,519.32 |
| Housinglease | 107,020,774.99 | 19,678,154.79 | 74,440,747.48 | 6,447,669.25 |
| Others | 388,615,772.08 | 116,547,338.90 | 677,046,419.98 | 445,098,274.99 |
| Total | 1,587,237,934.84 | 1,265,752,715.60 | 1,426,664,519.51 | 1,144,998,564.69 |
(5)OperatingRevenuefromTop5Customers
| Period | Totaloperatingrevenuefromtop5customers | ProportiontooperatingrevenueofReportingPeriod(%) |
| 2018 | 13,375,164,153.90 | 29.00 |
| 2017 | 7,077,286,124.31 | 22.66 |
39.TaxesandSurtaxes
| Item | ReportingPeriod | SamePeriodoflastyear |
| Urbanmaintenanceandconstructiontax | 24,828,107.02 | 22,176,591.33 |
| Item | ReportingPeriod | SamePeriodoflastyear |
| Stampduty | 15,162,609.72 | 15,520,219.86 |
| Propertytax | 14,178,084.66 | 15,088,906.82 |
| Landusetax | 12,019,009.56 | 9,959,196.22 |
| Educationsurcharge | 11,001,522.37 | 10,051,601.65 |
| Localeducationsurcharge | 7,345,690.22 | 6,807,461.39 |
| Waterresourcesfund | 1,309,631.97 | 548,589.88 |
| Vehicleandvesselsusagetax | 16,094.66 | 341,052.18 |
| Businesstax | - | 2,295,449.95 |
| Others | 3,829,115.75 | 126,047,664.33 |
| Total | 89,689,865.93 | 208,836,733.61 |
Note:RefertoNoteVTaxationfordetailsofthemeasurementstandardsofvarioustaxesandsurtaxes.40.SellingExpense
| Item | ReportingPeriod | SamePeriodoflastyear |
| Salary | 730,468,898.17 | 791,375,434.96 |
| Promotionalactivities | 342,640,120.91 | 373,118,418.23 |
| LogisticFee | 337,227,473.98 | 321,989,098.63 |
| Warrantyfee | 202,084,416.68 | 166,475,580.70 |
| Advertisingexpense | 349,308,929.28 | 219,633,787.72 |
| Taxesandfund | 53,380,828.00 | 67,614,333.51 |
| Businesstravelcharges | 35,211,979.96 | 33,971,957.80 |
| Exhibitionexpenses | 25,377,016.80 | 14,958,812.83 |
| Rentalcharges | 23,247,889.18 | 23,122,212.30 |
| Businessentertainmentexpenses | 21,055,262.45 | 22,760,942.79 |
| Other | 162,171,426.23 | 106,972,978.64 |
| Total | 2,282,174,241.64 | 2,141,993,558.11 |
41.AdministrativeExpense
| Item | ReportingPeriod | SamePeriodoflastyear |
| Salary | 278,758,343.19 | 196,593,346.39 |
| Depreciationcharge | 71,547,932.45 | 39,733,413.81 |
| Consultingfees | 42,016,562.62 | 25,807,304.97 |
| Item | ReportingPeriod | SamePeriodoflastyear |
| Socialsecuritycharges | 23,520,903.01 | 18,845,381.77 |
| Businessentertainmentexpense | 22,609,874.52 | 13,634,367.93 |
| Patentfee | 22,483,701.61 | 20,607,523.97 |
| Businesstravelcharges | 22,475,469.34 | 12,847,093.80 |
| Employeewelfare | 15,390,406.89 | 10,398,246.45 |
| Water&electricityfees | 11,658,004.88 | - |
| Labor-unionexpenditure | 10,237,943.20 | 8,758,356.31 |
| Housingallowance | 5,597,428.25 | 4,827,139.40 |
| Other | 115,596,426.22 | 95,984,523.16 |
| Total | 641,892,996.18 | 448,036,697.96 |
42.R&DExpense
| Item | ReportingPeriod | SamePeriodoflastyear |
| Salary | 176,668,069.66 | 146,606,511.30 |
| Expensesontrialproductionofnewproducts | 112,453,347.32 | 117,019,889.74 |
| Materialdrawingout | 47,815,656.03 | 14,274,438.17 |
| Depreciationandamortization | 11,820,275.57 | 11,535,501.37 |
| Testingfees | 11,555,165.21 | 7,589,058.90 |
| Informationcharges | 10,466,824.02 | 6,522,293.88 |
| Water&electricityfees | 5,399,670.34 | 4,888,311.12 |
| Businesstravelcharges | 3,309,558.94 | 2,464,463.80 |
| Handmodelfees | 2,420,847.59 | 1,192,401.74 |
| Other | 14,550,730.56 | 17,584,112.48 |
| Total | 396,460,145.24 | 329,676,982.50 |
43.FinanceCosts
| Item | ReportingPeriod | SamePeriodoflastyear |
| Interestexpense | 566,070,556.21 | 352,438,125.53 |
| Less:Interestincome | 43,630,012.41 | 62,735,102.89 |
| Foreignexchangeprofitorloss | -174,702,042.10 | 33,585,873.68 |
| Other | 51,427,312.69 | 17,629,654.29 |
| Total | 399,165,814.39 | 340,918,550.61 |
44.AssetImpairmentLoss
| Item | ReportingPeriod | SamePeriodoflastyear |
| Baddebtloss | 86,898,151.31 | -12,753,051.08 |
| Inventoryfallingpriceloss | 139,421,841.21 | 164,992,959.69 |
| Impairmentlossesofavailable-for-salefinancialassets | - | 5,750,000.00 |
| Fixedassetsimpairmentlosses | 549,228.15 | 1,713,814.69 |
| Total | 226,869,220.67 | 159,703,723.30 |
45.OtherIncome
| Item | ReportingPeriod | SamePeriodoflastyear | Amountrecordedintothecurrentnon-recurringprofitorloss |
| Rewardsandsubsidies | 173,850,805.31 | 53,426,592.80 | 173,850,805.31 |
| Softwaretaxrebates | 64,656,609.96 | 56,782,742.21 | - |
| Transferofdeferredincome | 29,357,262.38 | 29,182,496.49 | 29,357,262.38 |
| Supportfund | 18,108,788.00 | 49,848,202.23 | 18,108,788.00 |
| L/Cexportsubsidy | 3,821,338.00 | 2,817,636.00 | 3,821,338.00 |
| Landtaxrebates | 2,248,900.00 | 8,829,600.00 | 2,248,900.00 |
| Postsubsidies | 1,796,103.67 | 2,038,431.45 | 1,796,103.67 |
| Other | 425,824.91 | 2,053,742.37 | 425,824.91 |
| Total | 294,265,632.23 | 204,979,443.55 | 229,609,022.27 |
46.InvestmentIncome
| Item | ReportingPeriod | SamePeriodoflastyear |
| Long-termequityinvestmentincomemeasuredbyequitymethod | 19,139,381.20 | 3,953,094.99 |
| Investmentincomefromdisposaloflong-termequityinvestment | 185,587,193.61 | 6,419,583,589.12 |
| Investmentincomefromholdingoffinancialassetsatfairvaluethroughprofitorloss | - | 248,207.55 |
| Investmentincomefromdisposaloffinancialassetsatfairvaluethroughprofitorloss | -45,928,989.49 | -23,444,831.75 |
| Investmentincomefromholdingofavailable-for-salefinancialassets | 17,920,000.00 | 4,310,000.00 |
| Investmentincomefromdisposalofavailable-for-salefinancialassets | 17,360,398.59 | 25,486,800.02 |
| Item | ReportingPeriod | SamePeriodoflastyear |
| Incomefromre-measurementofresidualstockrightsatfairvalueafterlosingcontrolpower | 551,089,548.47 | 53,847,856.66 |
| Incomefrompurchaseoffinancialproductsandentrustloans | 183,411,695.80 | 70,070,846.08 |
| Transferofequityinvestmentbyequitymethodintofinancialassets | - | 33,792,795.21 |
| Countercurrenttradingproducesunrealizedprofitadjustedinvestmentincome | -1,164,857.22 | - |
| Total | 927,414,370.96 | 6,587,848,357.88 |
47.GainonChangesinFairValue
| Sources | ReportingPeriod | Sameperiodoflastyear |
| Financialassetsatfairvaluethroughprofitorloss | 5,168,185.39 | -39,598,044.59 |
| Ofwhich:gainonchangesinfairvalueofderivativefinancialinstruments | 5,168,185.39 | -39,598,044.59 |
| Tradingfinancialassets | - | 20,521,800.00 |
| Financialliabilitiesmeasuredatfairvalueandrecordedincurrentprofitsandlosses | 45,022,867.25 | -47,145,207.37 |
| Ofwhich::fairvaluevariationincomegeneratedbyderivativefinancialinstruments | 45,022,867.25 | -47,145,207.37 |
| Total | 50,191,052.64 | -66,221,451.96 |
48.AssetDisposalIncome
| Item | ReportingPeriod | SamePeriodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Fixedassetsdisposalincome | -563,894.74 | 22,576,235.00 | -563,894.74 |
| Intangibleassetsdisposalincome | - | 33,369,166.39 | - |
| Total | -563,894.74 | 55,945,401.39 | -563,894.74 |
49.Non-operatingIncome
| Item | ReportingPeriod | SamePeriodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Gainsonthedamageandscrappingof | 209,465.30 | 90,088.16 | 209,465.30 |
| Item | ReportingPeriod | SamePeriodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| non-currentassets | |||
| GovernmentsubsidiesunrelatedtothenormaloperationoftheCompany | 30,000,000.00 | 30,176,000.00 | 30,000,000.00 |
| Gainsondebtrestructuring | 46,445,749.23 | 3,714,592.49 | 46,445,749.23 |
| Compensationincome | 55,281.81 | 449,085.66 | 55,281.81 |
| Penaltyincome | 14,987,008.86 | 4,378,369.42 | 14,987,008.86 |
| Compensationfromsuppliers | 421,248.97 | - | 421,248.97 |
| Negativegoodwillgeneratedfromshareswhosecombinationcostlessthanthefairvalueofrecognizablenetassetsobtained | 220,045,229.63 | - | 220,045,229.63 |
| Other | 16,532,156.29 | 44,024,528.03 | 16,532,156.29 |
| Total | 328,696,140.09 | 82,832,663.76 | 328,696,140.09 |
Ofwhich,governmentsubsidiesrecordedintocurrentprofitorloss:
| Item | ReportingPeriod | Sameperiodoflastyear | Relatedtotheassets/income | ||||
| Recordedintonon-operatingincome | Recordedintootherincome | Offsetcosts | Recordedintonon-operatingincome | Recordedintootherincome | Offsetcosts | ||
| Rewardsandsubsidies | 30,000,000.00 | - | - | 30,000,000.00 | - | - | Relatedtoincome |
| Other | - | - | - | 176,000.00 | - | - | Relatedtoincome |
| Total | 30,000,000.00 | - | - | 30,176,000.00 | - | - | |
50.Non-operatingExpense
| Item | ReportingPeriod | SamePeriodoflastyear | Amountrecordedintothecurrentnon-recurringprofitorloss |
| Lossesondamageandscrapingofnon-currentassets | 3,503,737.74 | 5,408,316.93 | 3,503,737.74 |
| Compensationexpense | 118,766.24 | 5,757,816.49 | 118,766.24 |
| Donations | 177,601.00 | 437,976.34 | 177,601.00 |
| Item | ReportingPeriod | SamePeriodoflastyear | Amountrecordedintothecurrentnon-recurringprofitorloss |
| Penalty | 2,727,629.00 | - | 2,727,629.00 |
| Liquidateddamages | 1,049,718.66 | - | 1,049,718.66 |
| Lossesondamageandscrappingofinventories | 11,658,004.88 | - | 11,658,004.88 |
| Other | 460,399.26 | 4,916,922.92 | 460,399.26 |
| Total | 19,695,856.78 | 16,521,032.68 | 19,695,856.78 |
51.IncomeTaxExpense
(1)ListsofIncomeTaxExpense
| Item | ReportingPeriod | Sameperiodoflastyear |
| Currentincometaxexpense | 145,391,357.02 | 1,181,682,531.53 |
| Deferredincometaxexpense | -359,113,186.48 | 389,958,474.25 |
| Total | -213,721,829.46 | 1,571,641,005.78 |
(2)AdjustmentProcessofAccountingProfitandIncomeTaxExpense
| Item | ReportingPeriod |
| Profitbeforetaxation | 454,896,592.11 |
| Currentincometaxexpenseaccountedatstatutory/applicabletaxrate | 113,724,148.03 |
| Influenceofapplyingdifferenttaxratesbysubsidiaries | -54,083,374.50 |
| Influenceofincometaxbeforeadjustment | -2,392,637.36 |
| Influenceofnon-taxableincome | -56,565,083.87 |
| Influenceofnotdeductablecosts,expensesandlosses | 7,573,086.74 |
| Influenceofdeductablelossofunrecognizeddeferredincometaxassetsinpriorperiod | -26,901,514.84 |
| InfluenceofdeductabletemporarydifferenceordeductablelossesofunrecognizeddeferredincometaxintheReportingPeriod | -17,477,843.08 |
| Changesinthebalanceofdeferredincometaxassets/liabilitiesinpreviousperiodduetoadjustmentoftaxrate | 68,188.24 |
| Other | -177,666,798.82 |
| Incometaxexpense | -213,721,829.46 |
52.OtherComprehensiveIncomeRefertoNoteVI-35fordetails.53.CashFlowStatement
(1)CashGeneratedfromOtherOperatingActivities
| Item | ReportingPeriod | SamePeriodoflastyear |
| Commercialfactoringaccountsreceived | 3,046,250,433.88 | 6,151,752,072.71 |
| Intercoursefunds | 48,357,936.24 | 2,535,878,629.20 |
| Incomefromgovernmentsubsidy | 240,968,351.06 | 205,972,947.06 |
| Frontmoneyandguaranteedeposit | 150,767,666.31 | 59,127,499.85 |
| Interestincomefrombankdeposits | 21,754,813.26 | 68,495,305.71 |
| Incomefromwaste | 6,630,095.00 | 1,067,599.66 |
| Repaymentofindividualborrowings | 20,958,954.89 | 9,724,120.10 |
| Insuranceindemnity | 27,704,625.75 | 30,158,139.90 |
| Temporaryreceivedrepairfund | 1,499,503.30 | 7,053,099.89 |
| Incomefrompenaltyanddefaultmoney | 9,721,141.07 | 4,378,369.42 |
| Otherincome | 140,056,972.37 | 116,132,534.48 |
| Total | 3,714,670,493.13 | 9,189,740,317.98 |
(2)CashUsedinOtherOperatingActivities
| Item | ReportingPeriod | SamePeriodoflastyear |
| Thecommercialfactoringpayment(Note) | 2,925,211,901.01 | 8,852,860,166.99 |
| Expenseforcashpayment | 1,150,343,818.19 | 1,167,232,783.76 |
| Paymentmadeonbehalf | 51,369,090.01 | 27,188,407.90 |
| Paymentforguaranteedeposit,cashdepositandrepair | 344,427,373.48 | 123,627,145.04 |
| Pettycashforemployees | 27,655,007.55 | 19,067,788.75 |
| Expenseforbankhandlingcharges | 31,199,551.45 | 18,648,034.00 |
| Donationexpense | 102,578.10 | 437,976.34 |
| Defaultmoney | 44,675.99 | 119,593.48 |
| Otherexpense | ||
| Total | 78,728,884.80 | 42,422,836.03 |
(3)CashGeneratedfromOtherInvestingActivities
| Item | ReportingPeriod | SamePeriodoflastyear |
| Item | ReportingPeriod | SamePeriodoflastyear |
| Recoveryoffinancialproducts | 2,145,785,000.00 | 1,620,800,000.00 |
| Transferofstock | - | 220,507,387.99 |
| Recoveryofentrustedloans | 17,600,000.00 | - |
| Other | 229,643,228.96 | 6,173,387.62 |
| Total | 2,393,028,228.96 | 1,847,480,775.61 |
(4)CashUsedinOtherInvestingActivities
| Item | ReportingPeriod | SamePeriodoflastyear |
| Purchaseoffinancialproducts | 1,028,080,000.00 | 2,872,800,000.00 |
| Paymentforentrustedloans | 1,819,000,000.00 | - |
| Other | 2,439,200.00 | 13,188,913.10 |
| Total | 2,849,519,200.00 | 2,885,988,913.10 |
(5)CashGeneratedfromOtherFinancingActivities
| Item | ReportingPeriod | SamePeriodoflastyear |
| Governmentsubsidiesrelatedtoassets | - | 41,176,150.00 |
| Disposalofminorityinterestofsubsidiaries | 128,933,333.34 | 2,400,000.00 |
| Receivingentrusedloans | 298,225,230.01 | - |
| Other | 32,726,515.41 | - |
| SolutionpayofpledgedcertificateofRMBtimedepositatmaturity | - | 435,028,346.40 |
| Total | 459,885,078.76 | 478,604,496.40 |
(6)CashUsedinOtherFinancingActivities
| Item | ReportingPeriod | SamePeriodoflastyear |
| Depositasmarginforpledge | 116,939,471.09 | 22,664,753.77 |
| Repaymentofentrustedloans | 226,425,248.50 | - |
| Financelease | 412,777,454.04 | - |
| Financingexpense | 1,392,251.29 | 598,314.20 |
| Total | 757,534,424.92 | 23,263,067.97 |
54.SupplementalInformationforCashFlowStatement(1)SupplementalInformationforCashFlowStatement
| Supplementalinformation | ReportingPeriod | Sameperiodoflastyear |
| 1.Reconciliationofnetprofittonetcashflowsgeneratedfromoperatingactivities | ||
| Netprofit | 668,618,421.57 | 5,086,834,099.98 |
| Add:Provisionforimpairmentofassets | 226,869,220.67 | 159,703,723.30 |
| Depreciationoffixedassets,oil-gasassets,andproductivelivingassets | 170,534,496.07 | 116,653,496.12 |
| Amortizationofintangibleassets | 32,421,715.58 | 12,612,406.59 |
| Amortizationoflong-termprepaidexpenses | 74,931,813.60 | 58,694,071.62 |
| Lossesondisposaloffixedassets,intangibleassetsandotherlong-livedassets(gains:negative) | 563,894.74 | -55,945,401.39 |
| Lossesonscrapoffixedassets(gains:negative) | 3,294,272.44 | 5,318,228.77 |
| Lossesonchangesinfairvalue(gains:negative) | -50,191,052.64 | 66,221,451.96 |
| Financecosts(gains:negative) | 544,195,357.06 | 352,438,125.53 |
| Investmentloss(gains:negative) | -927,414,370.96 | -6,587,848,357.88 |
| Decreaseindeferredincometaxassets(gains:negative) | -323,517,091.85 | 393,791,889.56 |
| Increaseindeferredincometaxliabilities(“-”meansdecrease) | 37,991,934.70 | -4,396,482.52 |
| Decreaseininventories(gains:negative) | -668,140,011.75 | -3,657,857,260.85 |
| Decreaseinaccountsreceivablegeneratedfromoperatingactivities(gains:negative) | 261,056,969.48 | -3,952,004,354.33 |
| Increaseinaccountspayableusedinoperatingactivities(decrease:negative) | -3,251,682,178.99 | 3,720,709,237.56 |
| Other | -29,357,262.38 | -29,182,496.49 |
| Netcashgeneratedfrom/usedinoperatingactivities | -3,229,823,872.66 | -4,314,257,622.47 |
| 2.Significantinvestingandfinancingactivitieswithoutinvolvementofcashreceiptsandpayments | ||
| Transferofdebttocapital | - | - |
| Currentportionofconvertiblecorporatebonds | - | - |
| Fixedassetsleasedinbyfinancing | - | - |
| 3.Netincrease/decreaseofcashandcashequivalent: |
| Supplementalinformation | ReportingPeriod | Sameperiodoflastyear |
| Endingbalanceofcash | 3,434,149,481.72 | 3,097,899,703.76 |
| Less:beginningbalanceofcash | 3,097,899,703.76 | 2,020,902,945.14 |
| Add:Endingbalanceofcashequivalents | - | - |
| Less:Beginningbalanceofcashequivalents | - | - |
| Netincreaseincashandcashequivalents | 336,249,777.96 | 1,076,996,758.62 |
(2)NetCashPaidForAcquisitionofSubsidiaries
| Item | Amount |
| CashorcashequivalentspaidcurrentlyforcurrentbusinesscombinationsintheReportingPeriod | 1,531,450,000.00 |
| Ofwhich:ShandongEconTechnologyCo.,Ltd. | 400,000,000.00 |
| JiangxiKonkaNewMaterialTechnologyCo.,Ltd. | 598,000,000.00 |
| HenanFrestecRefrigerationApplianceCo.,Ltd. | 455,000,000.00 |
| GuangDongXingDaHongYeElectronicCo.,Ltd. | 78,450,000.00 |
| Less:cashandcashequivalentsheldbysubsidiariesonthepurchasedate | 414,139,604.63 |
| Ofwhich:ShandongEconTechnologyCo.,Ltd. | 178,434,322.05 |
| JiangxiKonkaNewMaterialTechnologyCo.,Ltd. | 208,815,770.16 |
| HenanFrestecRefrigerationApplianceCo.,Ltd. | - |
| GuangDongXingDaHongYeElectronicCo.,Ltd. | 25,339,512.42 |
| Netcashpaidforacquisitionofsubsidiaries | 1,118,860,395.37 |
(3)NetCashReceivefromDisposaloftheSubsidiaries
| Item | Amount |
| CashorcashequivalentsreceivedintheReportingPeriodfromdisposalofsubsidiariesintheCurrentPeriod | 330,680,336.00 |
| Ofwhich:KaikaiShijie | 50,000,000.00 |
| KunshanKangsheng | 280,680,336.00 |
| Item | Amount |
| ChongqingQingjia | - |
| ZeweiKechuang | - |
| Less:cashandcashequivalentsheldbysubsidiariesonthedateoflosingcontrolpower | 78,211,847.40 |
| Ofwhich:KaikaiShijie | 7,488,940.78 |
| KunshanKangsheng | 69,624,314.96 |
| ChongqingQingjia | 1,065,835.71 |
| ZeweiKechuang | 32,755.95 |
| Netcashreceivedfromdisposalofsubsidiaries | 252,468,488.60 |
(4)CashandCashEquivalents
| Item | Endingbalance | Beginningbalance |
| I.Cash | 3,434,149,481.72 | 3,097,899,703.76 |
| Including:Cashonhand | 130,105.31 | 49,343.08 |
| Bankdepositondemand | 3,434,019,376.41 | 3,097,850,360.68 |
| II.Endingbalanceofcashandcashequivalents | 3,434,149,481.72 | 3,097,899,703.76 |
55.AssetswithRestrictedOwnershiporRighttoUse
| Item | Endingcarryingvalue(RMB) | Reasonforrestriction |
| Monetarycapital | 91,399.46 | Amongwhich:RMB451.6092millionwasallkindsofdepositthatcannotbewithdrawnatanytime;RMB235millionwasfixedtimedeposits;RMB201.0352millionwassupervisedaccountcapitalforreimbursement;RMB19.8millionwasdepositspledgedasloans;RMB4.3466millionwasfrozencapitalforlawsuits;RMB2.2036millionwasrestrictedforotherreasons. |
| Notesreceivable | 132,145.49 | Asof31December2018,theCompanypledgednotesreceivableswithcarryingvalueofRMB1,321,454,900forconductingcomprehensivefinancingbusinessessuchasopeningofbanker’sacceptancebill,L/C,L/Gandtradefinancing. |
| Fixedassets | 22,695.57 | Formortgageborrowings.Referto20.Short-termBorrowingsinNoteVI |
56.ForeignCurrencyMonetaryItems(1)ForeignCurrencyMonetaryItems
| Item | Endingforeigncurrencybalance | Exchangerate | EndingbalanceconvertedtoRMB |
| Monetarycapital | |||
| Ofwhich:USD | 135,723,407.43 | 6.8632 | 931,496,889.87 |
| EUR | 1,817.87 | 7.8473 | 14,265.37 |
| HKD | 12,449,667.60 | 0.8762 | 10,908,398.75 |
| Accountsreceivable | |||
| Ofwhich:USD | 130,507,627.96 | 6.8632 | 895,699,952.22 |
| HKD | 3,531,401.47 | 0.8762 | 3,094,213.97 |
| AUD | 49,764.00 | 4.825 | 240,111.30 |
| Otherreceivables | |||
| Ofwhich:USD | 13,848,369.43 | 6.8632 | 95,044,129.07 |
| Interestreceivable | |||
| Ofwhich:USD | 54,781.10 | 6.8632 | 375,973.65 |
| Accountspayable | |||
| Ofwhich:USD | 21,644,634.75 | 6.8632 | 148,551,457.22 |
| HKD | 529,791,419.53 | 0.8762 | 464,203,241.79 |
| Otherpayables | |||
| Ofwhich:HKD | 23,657,224.69 | 0.8762 | 20,728,460.27 |
| Intangibleassets | 5,720.79 | Formortgageborrowings.Referto20.Short-termBorrowingsinNoteVIFormortgageborrowings.Referto28.Long-termBorrowingsinNoteVI |
| Long-termreceivables | 34,941.65 | Mortgageborrowings.Referto28.Long-termBorrowingsinNoteVI |
| Total | 286,902.96 |
| Item | Endingforeigncurrencybalance | Exchangerate | EndingbalanceconvertedtoRMB |
| Short-termborrowings | |||
| Ofwhich:USD | 208,330,389.67 | 6.8632 | 1,429,813,130.38 |
| Interestpayable | |||
| Ofwhich:USD | 1,302,303.49 | 6.8632 | 8,937,969.31 |
(2)NotestoOverseasEntities
ThesignificantoverseasentitiesincludeHongKongKonka,KonkaElectricalAppliancesInternational
Trading,ChainKingdomShenzhen,KangjietongandJialiInternational.ThemainoverseasoperatingplaceisHongKong.TheCompany’srecordingcurrencyisHKDsincethemaincurrencyincirculationinHongKongisHKD.
57.ArbitrageRefertorelevantcontentsinitemsnotesofin2.FinancialAssetsatFairValuethroughProfitorLossinNoteVI.58.GovernmentSubsidy(1)BasicInformationonGovernmentSubsidy
| Category | Amount | Listeditems | Amountrecordedinthecurrentprofitorloss |
| SubsidyforChuzhouTongshengInvestmentDevelopmentCo.,Ltd. | 30,000,000.00 | Non-operatingincome | 30,000,000.00 |
| Rewardsandsubsidies | 173,850,805.31 | Otherincome | 173,850,805.31 |
| Taxrebatesofsoftware | 64,656,609.96 | Otherincome | 64,656,609.96 |
| Supportfund | 18,108,788.00 | Otherincome | 18,108,788.00 |
| SubsidyforL/Cexport | 3,821,338.00 | Otherincome | 3,821,338.00 |
| Landtaxrebates | 2,248,900.00 | Otherincome | 2,248,900.00 |
| Postsubsidies | 1,796,103.67 | Otherincome | 1,796,103.67 |
| Other | 425,824.91 | Otherincome | 425,824.91 |
| SubsidyfordecorationofKonkaZhifuLifeScienceInnovationCenter | 10,000,000.00 | Deferredincome/Otherincome | 1,499,999.94 |
| SubsidyforprojectofveinR&DCenter | 1,750,000.00 | Deferredincome | - |
| SubsidyforcentreinfrastructureinvestmentbudgetinpremilinaryworkofPPPproject | 1,000,000.00 | Deferredincome | - |
| R&DinstrumentsubsidyfromScienceandTechnologyBureauofAnhuiProvince | 225,000.00 | Deferredincome/Other | 3,750.00 |
| Category | Amount | Listeditems | Amountrecordedinthecurrentprofitorloss |
| income | |||
| Provincialspecialfundforintellectualproperty | 200,000.00 | Deferredincome | - |
| Subsidyfortransformationofenvironmentalprotectionproject | 60,000.00 | Deferredincome/Otherincome | 1,000.00 |
| R&Dinstrumentsubsidy | 48,000.00 | Deferredincome/Otherincome | 800.00 |
| Total | 308,191,369.85 | 296,413,919.79 |
(2)ReturnofGovernmentSubsidyNosuchcasesintheReportingPeriod.VII.ChangesofConsolidationScope1.BusinessCombinationNotundertheSameControl(1)BusinessCombinationNotundertheSameControlduringtheReportingPeriod
| Nameofacquiree | Timeandplaceofgainingtheequity | Costofgainingtheequity(RMB’0,000) | Proportionofequity(%) | Waytogaintheequity | Purchasedate | Recognitionbasisofpurchasedate | Incomeofacquireefromthepurchasedatetoperiod-end | Netprofitsofacquireefromthepurchasedatetoperiod-end |
| EconTechnology | 4May2018 | 68,850.00 | 51.00 | Purchaseincash | 4May2018 | Actualcontrol | 109,722.71 | 14,336.84 |
| JiangxiKonka | 16August2018 | 68,968.00 | 51.00 | Purchaseincash | 16August2018 | Actualcontrol | 12,393.18 | 3,766.31 |
| XingDaHongYe | 29June2018 | 9,945.00 | 51.00 | Purchaseincash | 29June2018 | Actualcontrol | 18,272.14 | -1,989.34 |
| HenanFrestecRefrigerationApplianceCo.,Ltd.,Henan | 3August2018 | 45,500.00 | 100.00 | Purchaseincash | 3August2018 | Actualcontrol | 12,517.13 | -1,245.05 |
(2)CombinationCostandGoodwill
| Item | EconTechnology | JiangxiKonka | XingDaHongYe | HenanFrestecRefrigerationApplianceCo.,Ltd.,HenanFrestecElectricalAppliancesCo.,Ltd.andHenanFrestecHouseholdAppliancesCo.,Ltd. |
| Combinationcost | ||||
| —cash | 40,000.00 | 59,800.00 | 7,845.00 | 45,500.00 |
| —intercourse | 28,850.00 | 9,168.00 | 2,100.00 | - |
| Totalcombinationcost | 68,850.00 | 68,968.00 | 9,945.00 | 45,500.00 |
| Less:sharesoffairvalueofrecognizablenetassetsobtained | 22,373.91 | 34,917.24 | 5,529.33 | 67,504.52 |
| Amountofsharesoffairvalueofrecognizablenetassetsdeductinggoodwill/combinationcost | 46,476.09 | 34,050.76 | 4,415.67 | -22,004.52 |
1.ThefairvalueoftheidentifiablepartoftheidentifiableassetsorliabilitieshasbeendeterminedbythevaluationresultsdeterminedbyShenzhenPengxinAssetsAppraisalLandRealEstateAppraisalCo.,Ltd.2.Themainreasonfortheformationoflarge-valuegoodwillThereasonfortheformationoftheabove-mentionedlarge-valuegoodwillistheacquisitionofEconTechnology,JiangxiKonkaandXingdaHongyenotunderthesamecontrol.Itisamarket-orientedtransaction.Thepricingisbasedonthevaluationoftheevaluationexpertsandtheresultsofnegotiationsbetweenthetwoparties.
(3)TheIdentifiableAssetsandLiabilitiesofAcquireeonPurchaseDate
| Item | EconTechnology | JiangxiKonka | XingDaHongYe | HenanFrestecRefrigerationApplianceCo.,Ltd.,HenanFrestecElectricalAppliancesCo.,Ltd.andHenanFrestecHouseholdAppliancesCo.,Ltd. | ||||
| Fairvalueonpurchasedate | Carryingvalueonpurchasedate | Fairvalueonpurchasedate | Carryingvalueonpurchasedate | Fairvalueonpurchasedate | Carryingvalueonpurchasedate | Fairvalueonpurchasedate | Carryingvalueonpurchasedate | |
| Assets: | ||||||||
| Monetarycapital | 17,843.43 | 17,843.43 | 23,537.18 | 23,537.18 | 6,462.69 | 6,462.69 | - | - |
| Inventories | 690.08 | 690.08 | 10,694.34 | 10,694.34 | 4,628.41 | 4,628.41 | - | - |
| Accountsreceivable | 28,624.03 | 28,624.03 | - | - | 15,380.36 | 15,380.36 | - | - |
| Fixedassets | 1,697.30 | 1,697.30 | 62,529.03 | 55,923.94 | 22,187.76 | 16,195.68 | 33,879.53 | 33,791.33 |
| Intangibleassets | 14,472.32 | 11,672.32 | 15,831.87 | 4,014.75 | 9,127.53 | 3,911.13 | 21,878.87 | 5,409.74 |
| Otherassets | 68,372.99 | 68,973.82 | 80,340.05 | 80,340.05 | 12,060.72 | 12,060.72 | 22,501.14 | 22,501.14 |
| Liabilities: | ||||||||
| Borrowings | 18,750.00 | 18,750.00 | 21,187.00 | 21,187.00 | 21,070.00 | 21,070.00 | - | - |
| Accountspayable | 26,604.55 | 26,604.55 | 15,832.33 | 15,832.33 | 31,218.63 | 31,218.63 | - | - |
| Deferredincometaxliabilities | 420.00 | - | 2,763.33 | - | 1,681.27 | - | 9,764.33 | - |
| Deferredincome | - | - | - | - | - | - | - | 22,500.00 |
| Otherliabilities | 32,370.38 | 32,370.38 | 84,607.05 | 84,607.05 | 4,535.51 | 4,535.50 | 990.69 | 990.69 |
| Item | EconTechnology | JiangxiKonka | XingDaHongYe | HenanFrestecRefrigerationApplianceCo.,Ltd.,HenanFrestecElectricalAppliancesCo.,Ltd.andHenanFrestecHouseholdAppliancesCo.,Ltd. | ||||
| Fairvalueonpurchasedate | Carryingvalueonpurchasedate | Fairvalueonpurchasedate | Carryingvalueonpurchasedate | Fairvalueonpurchasedate | Carryingvalueonpurchasedate | Fairvalueonpurchasedate | Carryingvalueonpurchasedate | |
| Netassets | 53,555.22 | 51,776.05 | 68,542.76 | 52,883.88 | 11,342.06 | 1,814.86 | 67,504.52 | 38,211.52 |
| Less:non-controllinginterests | 31,487.74 | 33,585.95 | 5,812.73 | - | ||||
| Netassetsobtained | 22,067.48 | 34,956.81 | 5,529.33 | 67,504.52 | ||||
2.DisposalofSubsidiaryAsingledisposaloftheinvestmenttothesubsidiaryandlostcontrol
| Nameofthesubsidiary | Theequitydisposalprice | Equitydisposalproportion(%) | Methodofequitydisposal | Timeoflosingcontrol | Recognitionbasisforthetimeoflosingcontrolpower | Thedifferencesofenjoyednetassetsshareofthesubsidiaryincorrespondingconsolidatedstatementsofthedisposalpriceandthedisposalinvestment |
| KaikaiShijie | 5,000.00 | 5 | Transfer | 28June2018 | Transferofequity,operationandfinancialcontrollingpower | 4,712.62 |
| KunshanKangsheng | 28,068.03 | 51 | Transfer | 25June2018 | Transferofequity,operationandfinancialcontrollingpower | 9,827.25 |
(Continued)
| Nameofthesubsidiary | Residualequityproportiononthedateoflosingcontrolpower(%) | Carryingvalueofresidualequityonthedateoflosingcontrolpower | Fairvalueofresidualequityonthedateoflosingcontrolpower | Gainsorlossesfromre-measurementofresidualequityatfairvalue | Recognitionmethodandmainassumptionoffairvalueofresidualequityonthedateoflosingcontrolpower | Amountofothercomprehensiveincomerelatedtoformersubsidiariestransferredintoinvestmentprofitorloss |
| KaikaiShijie | 46.00 | 2,643.91 | 46,000.00 | 43,356.09 | Markettradingprice | — |
| Nameofthesubsidiary | Residualequityproportiononthedateoflosingcontrolpower(%) | Carryingvalueofresidualequityonthedateoflosingcontrolpower | Fairvalueofresidualequityonthedateoflosingcontrolpower | Gainsorlossesfromre-measurementofresidualequityatfairvalue | Recognitionmethodandmainassumptionoffairvalueofresidualequityonthedateoflosingcontrolpower | Amountofothercomprehensiveincomerelatedtoformersubsidiariestransferredintoinvestmentprofitorloss |
| KunshanKangsheng | 51.00 | 17,525.46 | 26,967.33 | 9,441.87 | Markettradingprice | — |
3.ChangesinCombinationScopeforOtherReasons(1)SubsidiariesEstablishedbytheCompanyin2018
| Name | Registeredcapital | Shareholdingpercentage(%) | Timeandplaceofobtainingcontrolpower | Methodofobtaining |
| ChengduKonka | 5,000,000.00 | 51.00 | 5February2018 | Establishment |
| ChengduAnren | 5,000,000.00 | 51.00 | 16August2018 | Establishment |
| KonkaEnterpriseService | 5,000,000.00 | 51.00 | 5September2018 | Establishment |
| ChuanghuiIntelligent | 1,000,000.00 | 40.80 | 26July2018 | Establishment |
| KonkaEnterprisemanagement | 5,000,000.00 | 51.00 | 8November2018 | Establishment |
| YibinkonkaIncubator | 20,000,000.00 | 51.00 | 18October2018 | Establishment |
| Cross-borderKechuang | 1,000,000.00 | 26.01 | 21November2018 | Establishment |
| JialiInternational | HKD5000000 | 51.00 | 2February2018 | Establishment |
| SichuanKonka | 100,000,000.00 | 51.00 | 15January2018 | Establishment |
| ElectricalApplianceTechnology | 100,000,000.00 | 51.00 | 12June2018 | Establishment |
| JiaxinTechnology | HKD10000000 | 51.00 | 25January2018 | Establishment |
| Name | Registeredcapital | Shareholdingpercentage(%) | Timeandplaceofobtainingcontrolpower | Methodofobtaining |
| YifangTechnology | 10,000,000.00 | 60.00 | 3December2018 | Establishment |
| Kangjietong | HKD1000000 | 51.00 | 9January2018 | Establishment |
| YibinKonka | 100,000,000.00 | 100.00 | 15January2018 | Establishment |
| IndustryNewTown | 100,000,000.00 | 51.00 | 7March2018 | Establishment |
| KonkaSuiyong | 50,000,000.00 | 51.00 | 11May2018 | Establishment |
| HainanTechnology | 100,000,000.00 | 51.00 | 9August2018 | Establishment |
| KangquanEnterprise | 10,000,000.00 | 51.00 | 26June2018 | Establishment |
| ElectronicsTechnology | 1,000,000,000.00 | 100.00 | 16January2018 | Establishment |
| NanjingKonka | 50,000,000.00 | 100.00 | 28December2018 | Establishment |
| AnhuiZhilian | 50,000,000.00 | 100.00 | 20September2018 | Establishment |
| KonkaHuanjia | 180,000,000.00 | 51.00 | 6June2018 | Establishment |
| ShanghaiKonka | 100,000,000.00 | 100.00 | 11April2018 | Establishment |
| ChuzhouKangyong | 50,000,000.00 | 100.00 | 18July2018 | Establishment |
| YantaiKonka | 100,000,000.00 | 0.90 | 5September2018 | Establishment |
| Yantaikangjin | 100,000,000.00 | 62.80 | 7September2018 | Establishment |
| ShangdongKangxin | 100,000,000.00 | 51.00 | 7December2018 | Establishment |
| Shenzhenkangxinwei | 100,000,000.00 | 100.00 | 19October2018 | Establishment |
| ShenzhenMeixin | 10,000,000.00 | 51.00 | 31October2018 | Establishment |
| Hefeikangxinwei | 50,000,000.00 | 51.00 | 7November2018 | Establishment |
| ShenzhenNianhua | 30,000,000.00 | 100.00 | 22August2018 | Establishment |
| KonkaEco-development | 5,000,000.00 | 51.00 | 27December2018 | Establishment |
| Name | Registeredcapital | Shareholdingpercentage(%) | Timeandplaceofobtainingcontrolpower | Methodofobtaining |
| KonkaRonghe | 50,000,000.00 | 51.00 | 26December2018 | Establishment |
| SuiningKonkaIndustryPark | 200,000,000.00 | 100.00 | 26December2018 | Establishment |
| SichuanKangjiatong | 30,000,000.00 | 51.00 | 26March2018 | Establishment |
| KonkaSuyuan | 10,000,000.00 | 51.00 | 5February2018 | Establishment |
(2)ChangesinCombinationScopeforOtherReasonsTheCompany'ssubsidiary,ShushidaLogistics(formerlyknownasShenzhenShushidaLogisticsServiceCo.,Ltd.)andPlasticProductswereliquidatedduringtheyearandtheremainingassetsweredistributed.On25October2018,RuntianGroupCo.,Ltd.entrusted20%oftheequityvotingrightsofChongqingQingjiaheldbyittoChongqingElectromechanicalHolding(Group)Co.,Ltd.,formanagement.RuntianGroupCo.,Ltd.andChongqingElectromechanicalHolding(Group)Co.,Ltd.jointlyholda60%stakeinChongqingQingjia,theCompanynolongerhascontrolpower.VIII.EquityinOtherEntities1.EquityinSubsidiary
(1)Subsidiaries
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| KonkaE-display | Shenzhen,Guangdong | Shenzhen,Guangdong | Manufacturingindustry | 60.00 | Establishmentorinvestment | |
| E-displayService | Shenzhen, | Shenzhen, | Manufacturingindustry | 60.00 | Establishment | |
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| Guangdong | Guangdong | orinvestment | ||||
| KangqiaoEasyChain | Shenzhen,Guangdong | Shenzhen,Guangdong | Commerce | 60.00 | Establishmentorinvestment | |
| KonkaVentures | Shenzhen,Guangdong | Shenzhen,Guangdong | Otherorganizationandmanagementservice | 51.00 | Establishmentorinvestment | |
| YantaiKonka | Yantai,Shandong | Yantai,Shandong | Otherprofessionalconsultancyandinvestigation | 51.00 | Establishmentorinvestment | |
| ChengduKonka | Chengdu,Sichuan | Chengdu,Sichuan | Commercialservice | 51.00 | Establishmentorinvestment | |
| ChengduAnren | Chengdu,Sichuan | Chengdu,Sichuan | Commercialservice | 51.00 | Establishmentorinvestment | |
| KonkaEnterpriseService | Guiyang,Guizhou | Guiyang,Guizhou | Headquartersmanagement | 51.00 | Establishmentorinvestment | |
| ChuanghuiIntelligent | Nanjing,Jiangsu | Nanjing,Jiangsu | Entrepreneurialspaceservice | 40.80 | Establishmentorinvestment | |
| KonkaEnterprisemanagement | Guiyang,Guizhou | Guiyang,Guizhou | OtherCommercialservicenotlistedclearly | 51.00 | Establishmentorinvestment | |
| YibinkonkaIncubator | Yibin,Sichuan | Yibin,Sichuan | Commercialservice | 51.00 | Establishmentorinvestment | |
| Cross-borderKechuang | Shenzhen,Guangdong | Shenzhen,Guangdong | OtherITserviceindustrynotlistedclearly | 26.01 | Establishmentorinvestment | |
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| AnhuiKonka | Chuzhou,Anhui | Chuzhou,Anhui | Manufacturingindustry | 78.00 | Establishmentorinvestment | |
| KangzhiTrade | Chuzhou,Anhui | Chuzhou,Anhui | Wholesaleindustry | 78.00 | Establishmentorinvestment | |
| KonkaFactoring | Shenzhen,Guangdong | Shenzhen,Guangdong | Insuranceagents(non-bankfinance) | 100.00 | Establishmentorinvestment | |
| YoushiKangrong | Tianjin | Tianjin | Advertisement | 70.00 | Establishmentorinvestment | |
| ChuzhouKonkaTID | Chuzhou,Anhui | Chuzhou,Anhui | Scienceandtechnologyindustry | 100.00 | Establishmentorinvestment | |
| KonkaUnifortune | Shenzhen,Guangdong | Shenzhen,Guangdong | Retailindustry | 51.00 | Establishmentorinvestment | |
| JialiInternational | HongKong,China | HongKong,China | Retailindustry | 51.00 | Establishmentorinvestment | |
| Wankaida | Shenzhen,Guangdong | Shenzhen,Guangdong | Softwaredevelopment | 100.00 | Establishmentorinvestment | |
| DongguanKonka | Dongguan,Guangdong | Dongguan,Guangdong | Manufacturingindustry | 75.00 | 25.00 | Establishmentorinvestment |
| TelecommunicationTechnology | Shenzhen,Guangdong | Shenzhen,Guangdong | Manufacturingindustry | 75.00 | 25.00 | Establishmentorinvestment |
| ElectricalAppliances | Shenzhen, | Shenzhen, | Manufacturingindustry | 75.00 | 25.00 | Establishment |
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| Guangdong | Guangdong | orinvestment | ||||
| MudanjiangAppliances | Mudanjiang,Heilongjiang | Mudanjiang,Heilongjiang | Manufacturingindustry | 60.00 | Establishmentorinvestment | |
| KonkaEurope | Frankfurt,Germany | Frankfurt,Germany | InternationalTrading | 100.00 | Establishmentorinvestment | |
| CommercialSystemTechnology | Shenzhen,Guangdong | Shenzhen,Guangdong | Commerce | 81.00 | Establishmentorinvestment | |
| KonkaElectricalAppliances | Shenzhen,Guangdong | Shenzhen,Guangdong | Manufacturingindustry,commerce | 100.00 | Establishmentorinvestment | |
| KonkaMaterials | Haikou,Hainan | Haikou,Hainan | Commercialservice | 51.00 | Establishmentorinvestment | |
| MobileInterconnection | Shenzhen,Guangdong | Shenzhen,Guangdong | Commerce | 51.00 | Establishmentorinvestment | |
| SichuanKonka | Yibin,Sichuan | Yibin,Sichuan | Manufacturingindustry | 51.00 | Establishmentorinvestment | |
| AnhuiTongchuang | Chuzhou,Anhui | Chuzhou,Anhui | Manufacturingindustry | 100.00 | Establishmentorinvestment | |
| ElectricalApplianceTechnology | Chuzhou,Anhui | Chuzhou,Anhui | Manufacturingindustry | 51.00 | Establishmentorinvestment | |
| FrestecRefrigeration | Xinxiang,Henan | Xinxiang,Henan | Manufacturingindustry | 51.00 | Establishmentorinvestment | |
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| FrestecElectricalAppliances | Xinxiang,Henan | Xinxiang,Henan | Manufacturingindustry | 51.00 | Establishmentorinvestment | |
| FrestecHouseholdAppliances | Xinxiang,Henan | Xinxiang,Henan | Manufacturingindustry | 51.00 | Establishmentorinvestment | |
| PengrunTechnology | Shenzhen,Guangdong | Shenzhen,Guangdong | Retailindustry | 51.00 | Establishmentorinvestment | |
| JiaxinTechnology | HongKong,China | HongKong,China | Retailindustry | 51.00 | Establishmentorinvestment | |
| E3info | Haikou,Hainan | Haikou,Hainan | Networkplatformdevelopment | 60.00 | Establishmentorinvestment | |
| YifangTechnology | Shenzhen,Guangdong | Shenzhen,Guangdong | Networkplatformdevelopment | 60.00 | Establishmentorinvestment | |
| DongguanPacking | Dongguan,Guangdong | Dongguan,Guangdong | Manufacturingindustry | 75.00 | 25.00 | Establishmentorinvestment |
| E2info | Shenzhen,Guangdong | Shenzhen,Guangdong | Informationservice | 96.61 | Establishmentorinvestment | |
| BeijingKonkaElectronic | Beijing | Beijing | Saleofhomeappliance | 100.00 | Establishmentorinvestment | |
| KonkaLeasing | TianjinPilotFreeTradeZone | TianjinPilotFreeTradeZone | Leasingindustry | 100.00 | Establishmentorinvestment | |
| FittingsTechnology | Shenzhen, | Shenzhen, | Investmentholding | 75.00 | 25.00 | Establishment |
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| Guangdong | Guangdong | orinvestment | ||||
| BoluoKonkaPrecision | Boluo,Guangdong | Boluo,Guangdong | Manufacturingindustry | 100.00 | Establishmentorinvestment | |
| XiamenDalong | Xiamen,Fujian | Xiamen,Fujian | Commerce | 69.23 | Establishmentorinvestment | |
| BoluoKonka | Boluo,Guangdong | Boluo,Guangdong | Manufacturingindustry | 100.00 | Establishmentorinvestment | |
| ChongqingQingjia | Chongqing | Chongqing | Manufacturingindustry | 40.00 | Establishmentorinvestment | |
| HongKongKonka | HongKong,China | HongKong,China | InternationalTrading | 100.00 | Establishmentorinvestment | |
| KonkaHouseholdAppliancesInvestment | HongKong,China | HongKong,China | Investmentholding | 100.00 | Establishmentorinvestment | |
| ChainKingdom | HongKong,China | HongKong,China | InternationalTrading | 51.00 | Establishmentorinvestment | |
| ChainKingdomShenzhen | Shenzhen,Guangdong | Shenzhen,Guangdong | Wholesaleindustry | 51.00 | Establishmentorinvestment | |
| KonkaSmartTech | HongKong,China | HongKong,China | InternationalTrading | 61.00 | Establishmentorinvestment | |
| Kangjietong | HongKong,China | HongKong,China | Serviceindustry | 51.00 | Establishmentorinvestment | |
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| KonkaHouseholdAppliancesInternationalTrading | HongKong,China | HongKong,China | InternationalTrading | 100.00 | Establishmentorinvestment | |
| KonkaInvestment | Shenzhen,Guangdong | Shenzhen,Guangdong | Capitalmarketsservice | 100.00 | Establishmentorinvestment | |
| YibinKonka | Yibin,Sichuan | Yibin,Sichuan | Developmentandmanagementofindustrialpark | 100.00 | Establishmentorinvestment | |
| IndustryNewTown | Chengdu,Sichuan | Chengdu,Sichuan | Realestateindustry | 51.00 | Establishmentorinvestment | |
| KonkaCapital | Shenzhen,Guangdong | Shenzhen,Guangdong | Capitalmarketsservice | 100.00 | Establishmentorinvestment | |
| KonkaSuiyong | Shenzhen,Guangdong | Shenzhen,Guangdong | Investmentinindustry,commercialinformationconsultancyandinvestmentadvisor | 51.00 | Establishmentorinvestment | |
| HainanTechnology | Haikou,Hainan | Haikou,Hainan | Municipalroad,engineeringandbuildings | 51.00 | Establishmentorinvestment | |
| KangquanEnterprise | Shenzhen,Guangdong | Shenzhen,Guangdong | Commercialservice | 51.00 | Establishmentorinvestment | |
| SichuanKangjiatong | Yibin, | Yibin, | Serviceindustry | 51.00 | Establishment | |
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| Sichuan | Sichuan | orinvestment | ||||
| ElectronicsTechnology | Shenzhen,Guangdong | Shenzhen,Guangdong | Manufacturingindustry | 100.00 | Establishmentorinvestment | |
| XingDaHongYe | Zhongshan,Guangdong | Zhongshan,Guangdong | Manufacturingindustry | 51.00 | Establishmentorinvestment | |
| ShanghaiXinfeng | Shanghai | Shanghai | Commerce | 51.00 | Establishmentorinvestment | |
| ZeweiKechuang | Zhongshan,Guangdong | Zhongshan,Guangdong | Manufacturingindustry | 25.50 | Establishmentorinvestment | |
| NanjingKonka | Nanjing,Jiangsu | Nanjing,Jiangsu | Wholesaleindustry | 100.00 | Establishmentorinvestment | |
| AnhuiZhilian | Chuzhou,Anhui | Chuzhou,Anhui | e-commerce | 100.00 | Establishmentorinvestment | |
| EconTechnology | Yantai,Shandong | Yantai,Shandong | Environmentaltechnologyserviceindustry | 51.00 | Establishmentorinvestment | |
| BeijingEcon | Beijing | Beijing | Environmentaltechnologyserviceindustry | 51.00 | Establishmentorinvestment | |
| RushanEcon | Weihai,Shandong | Weihai,Shandong | Environmentaltechnologyserviceindustry | 51.00 | Establishmentorinvestment | |
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| ShanghaiJiyi | Shanghai | Shanghai | Environmentaltechnologyserviceindustry | 51.00 | Establishmentorinvestment | |
| BinzhouEcon | Binzhou,Shandong | Binzhou,Shandong | Environmentaltechnologyserviceindustry | 51.00 | Establishmentorinvestment | |
| LairunHoldings | Yantai,Shandong | Yantai,Shandong | Environmentaltechnologyserviceindustry | 30.60 | Establishmentorinvestment | |
| LaizhouLairunEnvironmentalProtection | Yantai,Shandong | Yantai,Shandong | Environmentaltechnologyserviceindustry | 30.60 | Establishmentorinvestment | |
| BinhaiSewageTreatment | Yantai,Shandong | Yantai,Shandong | Environmentaltechnologyserviceindustry | 30.60 | Establishmentorinvestment | |
| LairunHeating | Yantai,Shandong | Yantai,Shandong | Environmentaltechnologyserviceindustry | 30.60 | Establishmentorinvestment | |
| LairunGreenEnergy | Yantai,Shandong | Yantai,Shandong | Environmentaltechnologyserviceindustry | 30.60 | Establishmentorinvestment | |
| EconEnvironmentalEngineering | Chengdu,Sichuan | Chengdu,Sichuan | Environmentaltechnologyservice | 51.00 | Establishmentorinvestment | |
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| industry | ||||||
| QingdaoKangrunHonghuiPhotovoltaicPowerGenerationCo.,Ltd. | Qingdao,Shandong | Qingdao,Shandong | Environmentaltechnologyserviceindustry | 51.00 | Establishmentorinvestment | |
| YantaiKangrunHonghuiPhotovoltaicPowerGenerationCo.,Ltd. | Yantai,Shandong | Yantai,Shandong | Environmentaltechnologyserviceindustry | 51.00 | Establishmentorinvestment | |
| RushanYike | Weihai,Shandong | Weihai,Shandong | Environmentaltechnologyserviceindustry | 44.37 | Establishmentorinvestment | |
| BinzhouWeiyijie | Binzhou,Shandong | Binzhou,Shandong | Environmentaltechnologyserviceindustry | 35.70 | Establishmentorinvestment | |
| BeihaiJingmai | Binzhou,Shandong | Binzhou,Shandong | Environmentaltechnologyserviceindustry | 24.99 | Establishmentorinvestment | |
| YantaiChunzhiran | Yantai,Shandong | Yantai,Shandong | Environmentaltechnologyserviceindustry | 35.70 | Establishmentorinvestment | |
| LairunHuayang | Yantai,Shandong | Yantai,Shandong | Environmentaltechnologyserviceindustry | 26.01 | Establishmentorinvestment | |
| HuanhaiXinze | Yantai, | Yantai, | Environmental | 51.00 | Establishment | |
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| Shandong | Shandong | technologyserviceindustry | orinvestment | |||
| DonggangKangrunEnvironmentManagementCo.,Ltd. | Dandong,Liaoning | Dandong,Liaoning | Environmentaltechnologyserviceindustry | 50.63 | Establishmentorinvestment | |
| DayiKangrunWaterCo.,Ltd. | Chengdu,Sichuan | Chengdu,Sichuan | Environmentaltechnologyserviceindustry | 51.00 | Establishmentorinvestment | |
| SubeiMongolAutonomousCountyKangrunWaterCo.,Ltd. | Jiuquan,Gansu | Jiuquan,Gansu | Environmentaltechnologyserviceindustry | 39.78 | Establishmentorinvestment | |
| SuiningPengxiKangrunEnvironmentManagementCo.,Ltd. | Suining,Sichuan | Suining,Sichuan | Environmentaltechnologyserviceindustry | 40.75 | Establishmentorinvestment | |
| WeifangSihaiKangrunInvestmentOperationCo.,Ltd. | Weifang,Shandong | Weifang,Shandong | Environmentaltechnologyserviceindustry | 27.96 | Establishmentorinvestment | |
| KonkaHuanjia | Dalian,Liaoning | Dalian,Liaoning | Processingofrenewableresources | 51.00 | Establishmentorinvestment | |
| ShanghaiKonka | Shanghai | Shanghai | Realestateindustry | 100.00 | Establishmentorinvestment | |
| ChuzhouKangyong | Chuzhou,Anhui | Chuzhou,Anhui | Realestateindustry | 100.00 | Establishmentorinvestment | |
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| YantaiKonka | Yantai,Shandong | Yantai,Shandong | Realestateindustry | 89.71 | Establishmentorinvestment | |
| Yantaikangjin | Yantai,Shandong | Yantai,Shandong | Realestateindustry | 62.80 | Establishmentorinvestment | |
| ShangdongKangxin | Yantai,Shandong | Yantai,Shandong | Realestateindustry | 51.00 | Establishmentorinvestment | |
| JiangxiKonka | Jiujiang,Jiangxi | Jiujiang,Jiangxi | Production,manufacturingandprocessing | 51.00 | Establishmentorinvestment | |
| XinfengMicrocrystalline | Nanchang,Jiangxi | Nanchang,Jiangxi | Production,manufacturingandprocessing | 51.00 | Establishmentorinvestment | |
| Nanocrystalline | Jiujiang,Jiangxi | Jiujiang,Jiangxi | Production,manufacturingandprocessing | 51.00 | Establishmentorinvestment | |
| Shenzhenkangxinwei | Shenzhen,Guangdong | Shenzhen,Guangdong | Semi-conductor | 100.00 | Establishmentorinvestment | |
| ShenzhenMeixin | Shenzhen,Guangdong | Shenzhen,Guangdong | Commerce | 51.00 | Establishmentorinvestment | |
| Hefeikangxinwei | Hefei,Anhui | Hefei,Anhui | Designofintegratedcircuit | 51.00 | Establishmentorinvestment | |
| ShenzhenNianhua | Shenzhen,Guangdong | Shenzhen,Guangdong | Commercialservice | 100.00 | Establishmentorinvestment | |
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| KonkaEco-development | Shenzhen,Guangdong | Shenzhen,Guangdong | Commercialservice | 51.00 | Establishmentorinvestment | |
| KonkaRonghe | Foshan,Guangdong | Foshan,Guangdong | Wholesaleandretailindustry | 51.00 | Establishmentorinvestment | |
| SuiningKonkaIndustryPark | Suining,Sichuan | Suining,Sichuan | Developmentandmanagementofindustrialpark | 100.00 | Establishmentorinvestment | |
| KonkaSuyuan | Shenzhen,Guangdong | Shenzhen,Guangdong | Commercialservice | 51.00 | Establishmentorinvestment | |
(2)SignificantNon-wholly-ownedSubsidiary
| Name | Shareholdingproportionofnon-controllinginterests(%) | Theprofitorlossattributabletothenon-controllinginterests | Declaringdividendsdistributedtonon-controllinginterests | Balanceofnon-controllinginterestsattheperiod-end |
| ChainKingdomShenzhen | 49.00 | 21,583,722.75 | - | 37,273,148.54 |
| EconTechnology | 49.00 | 69,656,420.50 | - | 387,887,875.23 |
(3)TheMainFinancialInformationofSignificantNotWholly-ownedSubsidiary
| Name | Endingbalance | |||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliability | Totalliabilities | |
| Chain | 1,815,121,230.64 | 293,862.12 | 1,815,415,092.76 | 1,739,347,442.71 | - | 1,739,347,442.71 |
| Name | Endingbalance | |||||
| KingdomShenzhen | ||||||
| EconTechnology | 917,994,237.75 | 1,929,339,202.58 | 2,847,333,440.33 | 2,005,644,529.55 | 156,350,000.00 | 2,161,994,529.55 |
(Continued)
| Name | Beginningbalance | |||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliability | Totalliabilities | |
| ChainKingdomShenzhen | 1,162,693,203.78 | 129,592.90 | 1,162,822,796.68 | 1,134,435,779.93 | — | 1,134,435,779.93 |
| EconTechnology | - | - | - | - | - | - |
| Name | ReportingPeriod | |||
| Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
| ChainKingdomShenzhen | 8,838,797,265.88 | 44,048,413.75 | 44,048,413.75 | 134,780,094.30 |
| EconTechnology | 1,097,227,129.62 | 143,368,372.61 | 143,368,372.61 | 26,365,193.10 |
(Continued)
| Name | Sameperiodoflastyear | |||
| Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
| ChainKingdomShenzhen | 5,535,614,456.54 | 18,722,147.92 | 17,353,646.69 | 25,288,584.51 |
| Name | Sameperiodoflastyear | |||
| EconTechnology | - | - | - | - |
2.TheTransactionoftheCompanywithItsOwner’sEquityShareChangedbutStillControllingtheSubsidiary(1)NotetotheOwner’sEquityShareChangedinSubsidiaryOn18December2018,theCompanysignedanequitytransferagreementwithAlibaba(China)NetworkTechnologyCo.,Ltd.,andtheCompanywilltransfer3.3898%equityofE2infotoatthepriceofRMB123.33milliontoAlibaba(China)Network.TechnologyCo.,Ltd.Aftercompletingtheabovetransfer,theCompany'sshareholdingratioofE3infois96.6102%,anditstillbecontrolledbytheCompanyandisstillincludedinthescopeofconsolidation.(2)TheTransaction’sInfluenceontheEquityofNon-controllingInterestsandtheOwner'sEquityAttributabletotheCompanyastheParent
| Item | E2info |
| Disposalconsideration | - |
| —cash | 123,333,333.34 |
| —fairvalueofnon-cashassets | - |
| Totaldisposalconsideration | 123,333,333.34 |
| Less:Shareofnetassetsaccountedbypercentageofstockrightsdisposed | 2,859,446.58 |
| Difference | 120,473,886.76 |
| Ofwhich:adjustmentofcapitalreserves | 120,473,886.76 |
| Adjustmentofsurplusreserve | - |
| Adjustmentofretainedearnings | - |
3.EquityinJointVenturesorAssociatedEnterprises(1)SignificantJointVenturesorAssociatedEnterprises
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Accountingtreatmentoftheinvestmenttojointventureorassociatedenterprise | |
| Directly | Indirectly | |||||
| ChutianDragonCo.,Ltd. | Dongguan | Dongguan | Manufacturingindustryincomputer,communicationandotherelectronicequipment | 21.95 | Equitymethod | |
| KaikaiShijie | Shenzhen | Anhui | E-commerce | 42.61 | Equitymethod | |
| WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | Wuhan | Wuhan | Environmentalprotectionandenvironmentmanagement | 20.02 | Equitymethod | |
| ShenzhenYaodeTechnologyCo.,Ltd. | Shenzhen | Shenzhen | Manufacturingindustryincomputer,communicationandotherelectronicequipment | 20.00 | Equitymethod | |
| KunshanKonkaElectronicsTechnologyCo.,Ltd. | Kunshan | Kunshan | Manufacturingindustryincomputer,communicationandotherelectronicequipment | 49.00 | Equitymethod | |
(2)MainFinancialInformationofSignificantAssociatedEnterprise
| Item | Endingbalance/ReportingPeriod | ||||
| ChutianDragonCo.,Ltd. | KaikaiShijie | WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | ShenzhenYaodeTechnologyCo.,Ltd. | KunshanKonkaElectronicsTechnologyCo.,Ltd. | |
| Item | Endingbalance/ReportingPeriod | ||||
| ChutianDragonCo.,Ltd. | KaikaiShijie | WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | ShenzhenYaodeTechnologyCo.,Ltd. | KunshanKonkaElectronicsTechnologyCo.,Ltd. | |
| Currentassets | 1,222,095,636.91 | 686,309,035.24 | 230,469,218.29 | 698,493,882.82 | 132,379,197.79 |
| Non-currentassets | 278,261,091.56 | 3,549,521.27 | 365,139,896.53 | 95,652,906.71 | 322,419,882.21 |
| Totalassets | 1,500,356,728.47 | 689,858,556.51 | 595,609,114.82 | 794,146,789.53 | 454,799,080.00 |
| Currentliabilities | 515,045,146.59 | 606,863,177.36 | 83,949,518.05 | 229,286,124.16 | 55,865,275.98 |
| Non-currentliability | 16,794,877.63 | - | 52,271,637.67 | 1,656,838.09 | 6,565,214.27 |
| Totalliabilities | 531,840,024.22 | 606,863,177.36 | 136,221,155.72 | 230,942,962.25 | 62,430,490.25 |
| Equityofnon-controllinginterests | 5,361,673.58 | - | 1,300,578.22 | - | - |
| EquityattributabletoshareholdersoftheCompanyastheparent | 963,155,030.67 | 82,995,379.15 | 458,087,380.88 | 563,203,827.28 | 392,368,589.75 |
| Shareofnetassetsaccountedbyshareholdingpercentage | 211,383,634.58 | 35,364,497.05 | 91,708,111.68 | 112,640,765.46 | 192,260,608.98 |
| Adjustedevents |
| Item | Endingbalance/ReportingPeriod | ||||
| ChutianDragonCo.,Ltd. | KaikaiShijie | WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | ShenzhenYaodeTechnologyCo.,Ltd. | KunshanKonkaElectronicsTechnologyCo.,Ltd. | |
| -Goodwill | 413,461,970.35 | - | 160,562,143.79 | 109,570,069.72 | - |
| -Unrealizedinternalsalesgainandloss | - | - | - | - | - |
| -Other | - | 401,320,567.52 | - | - | 8,433,857.82 |
| Carryingvalueofequityinvestmenttoassociatedenterprises | 624,845,604.93 | 436,685,064.57 | 252,270,255.47 | 222,210,835.18 | 200,694,466.80 |
| Fairvalueofequityinvestmenttojointventureswithpublicoffer | - | - | - | - | - |
| Operatingrevenue | 1,024,123,239.82 | 1,077,935,788.28 | 302,542,158.18 | 788,986,575.09 | 1,383,992,676.29 |
| Financecosts | 129,755.99 | 8,481,874.17 | 1,702,872.19 | -6,879,619.57 | -9,619,653.24 |
| Incometaxexpense | 13,562,988.17 | 9,477,685.35 | 11,312,091.14 | 12,318,087.85 | - |
| Netprofit | 59,788,036.94 | 28,069,833.35 | 64,051,137.74 | 59,658,513.13 | -10,229,522.57 |
| Item | Endingbalance/ReportingPeriod | ||||
| ChutianDragonCo.,Ltd. | KaikaiShijie | WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | ShenzhenYaodeTechnologyCo.,Ltd. | KunshanKonkaElectronicsTechnologyCo.,Ltd. | |
| Netprofitfromdiscontinuedoperations | - | - | - | - | - |
| Othercomprehensiveincome | - | - | - | - | - |
| Totalcomprehensiveincome | 59,788,036.94 | 28,069,833.35 | 64,051,137.74 | 59,658,513.13 | -10,229,522.57 |
| DividendsreceivedfromjointventureinReportingPeriod | - | - | - | - | - |
(Continued)
| Item | Beginningbalance/Thesameperiodoflastyear | ||||
| ChutianDragonCo.,Ltd. | KaikaiShijie | WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | ShenzhenYaodeTechnologyCo.,Ltd. | KunshanKonkaElectronicsTechnologyCo.,Ltd. | |
| Currentassets | 1,275,973,644.95 | - | - | 529,254,428.27 | 450,377,789.88 |
| Non-currentassets | 265,717,459.13 | - | - | 81,833,013.73 | 339,299,159.57 |
| Totalassets | 1,541,691,104.08 | - | - | 611,087,442.00 | 789,676,949.45 |
| Currentliabilities | 610,280,220.79 | - | - | 102,411,669.34 | 393,186,594.32 |
| Item | Beginningbalance/Thesameperiodoflastyear | ||||
| ChutianDragonCo.,Ltd. | KaikaiShijie | WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | ShenzhenYaodeTechnologyCo.,Ltd. | KunshanKonkaElectronicsTechnologyCo.,Ltd. | |
| Non-currentliability | 14,700,720.45 | - | - | 5,130,458.50 | 652,129.50 |
| Totalliabilities | 624,980,941.24 | - | - | 107,542,127.84 | 387,078,837.13 |
| Equityofnon-controllinginterests | 9,178,745.28 | - | - | - | - |
| EquityattributabletoshareholdersoftheCompanyastheparent | 907,531,417.56 | - | - | 503,545,314.16 | 402,598,112.32 |
| Shareofnetassetsaccountedbyshareholdingpercentage | 203,752,601.15 | - | - | 100,709,062.83 | 197,273,075.04 |
| Adjustedevents | |||||
| -Goodwill | 413,461,970.35 | - | - | 109,570,069.72 | 8,433,857.82 |
| -Unrealizedinternalsalesgainandloss | - | - | - | - | - |
| -Other | - | - | - | - | - |
| Item | Beginningbalance/Thesameperiodoflastyear | ||||
| ChutianDragonCo.,Ltd. | KaikaiShijie | WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | ShenzhenYaodeTechnologyCo.,Ltd. | KunshanKonkaElectronicsTechnologyCo.,Ltd. | |
| Carryingvalueofequityinvestmenttoassociatedenterprises | 617,214,571.50 | - | - | 210,279,132.55 | 205,706,932.86 |
| Fairvalueofequityinvestmenttojointventureswithpublicoffer | - | - | - | - | - |
| Operatingrevenue | 927,468,144.67 | - | - | 782,641,588.11 | 1,843,565,739.98 |
| Financecosts | 8,182,245.66 | - | - | 23,563,857.52 | 5,261,591.15 |
| Incometaxexpense | 12,858,203.25 | - | - | 6,679,871.51 | - |
| Netprofit | 91,253,269.69 | - | - | 39,929,305.04 | -1,656,818.45 |
| Netprofitfromdiscontinuedoperations | - | - | - | - | |
| Othercomprehensiveincome | - | - | - | - | |
| Totalcomprehensiveincome | 91,253,269.69 | - | - | 39,929,305.04 | -1,656,818.45 |
| Item | Beginningbalance/Thesameperiodoflastyear | ||||
| ChutianDragonCo.,Ltd. | KaikaiShijie | WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | ShenzhenYaodeTechnologyCo.,Ltd. | KunshanKonkaElectronicsTechnologyCo.,Ltd. | |
| - | - | ||||
| DividendsreceivedfromjointventureinReportingPeriod | - | - | - | - | - |
(4)SummaryFinancialInformationofInsignificantJointVenturesorAssociatedEnterprises
| Item | Endingbalance/ReportingPeriod | Beginningbalance/Thesameperiodoflastyear |
| Associatedenterprise: | ||
| Totalcarryingvalueofinvestment | 1,060,533,163.28 | 286,786,706.83 |
| Thetotaloffollowingitemsaccordingtotheshareholdingproportions | ||
| --Netprofit | -25,764,761.70 | -267,212.72 |
| --Othercomprehensiveincome | 740,697.08 | -3,138,048.04 |
| --Totalcomprehensiveincome | -25,024,064.62 | -3,405,260.76 |
X.TheRiskRelatedtoFinancialInstrumentsTheCompany'smainfinancialinstrumentsincludeequityinvestment,creditinvestment,borrowings,accountsreceivable,accountspayable,etc.DetailsofthevariousfinancialinstrumentsareshownintherelevantnotestoAnnotationVI.Risksrelatedtothesefinancialinstruments,andriskmanagementpoliciestheCompanyhasadoptedtoreducetheserisksaredescribedasfollows.TheCompanymanagementmanagesandmonitorstheriskexposureinordertoensuretheaboveriskstobecontrolledinalimitedscope.
TheCompanyusesensitivityanalysistechnologytoanalyzethereasonableofriskvariables,influenceofprobablechangestothecurrentprofitorlossandStockholders’equity.Becauserarelyanyriskvariableschangeinisolation,andthecorrelationbetweenvariablesfortheeventualimpactofthechangeofariskvariableswillhaveasignificanteffect,thus,theaforesaidcontentwasprocessingundertheassumptionofthechangeofeachvariablewasconductedindependently.(I)RiskManagementObjectivesandPoliciesThegoalsofCompanyengagedintheriskmanagementistoachievetheproperbalancebetweentherisksandbenefits,reducedthenegativeimpacttotheCompanyoperatingperformancerisktoaminimum,maximizedtheprofitsofshareholdersandotherequityinvestors.Basedontheriskmanagementgoal,thebasicstrategyoftheCompany'sriskmanagementisdetermineandanalyzethevariousrisksfacedbytheCompany,setupthebottomlineofriskandconductedappropriateriskmanagement,andtimelysupervisedvariousrisksinareliablewayandcontrolledtheriskwithintherangeoflimit.1.MarketRisk
(1)ForeignExchangeRisk
Foreignexchangeriskreferstotherisksthatmayleadtolossesduetofluctuationinexchangerate.TheforeignexchangeriskbornebytheCompanyisrelatedtoUSD.ExcepttheprocurementandsalesbyUSdollarsforseveralsubsidiariesoftheCompany,theothermainbusinessesoftheCompanyweresettledbyRMB.Asof31December2018,exceptfortheassetsorliabilitiesmentionedinthetablebelow,theassetsandliabilitiesoftheCompanyaremainlythebalanceofRMB.TheforeignexchangerisksproducedbytheassetsandliabilitiesbalancemayaffectthebusinessperformanceoftheCompany.
| Item | Period-end | Period-begin |
| Cashandcashequivalents | 135,723,407.43 | 215,226,442.86 |
| Accountsreceivable | 130,507,627.96 | 225,058,783.20 |
| Otherreceivables | 13,848,369.43 | 32,570,569.60 |
| Item | Period-end | Period-begin |
| Interestreceivable | 54,781.10 | - |
| Accountspayable | 21,644,634.75 | 183,857,953.53 |
| Short-termborrowings | 208,330,389.67 | 331,453,218.73 |
| Interestpayable | 1,302,303.49 | 44,195.93 |
TheCompanytimelypaidattentiontotheinfluenceofchangeoftheexchangeratetotheCompany'sforeignexchangerisk,whichrequiredtheGroupandotherswhichconductedpurchaseandsalewithsettlementbyforeigncurrencytopurchaseforeigncurrencylong-termforwardcontracttolockthecostofpurchaseonforwarddatetoreducetheriskexposureofforeignexchange.Foreignexchangerisksensitivityanalysis:
Theforeignexchangerisksensitivityanalysisassumesthatalloverseasbusinessnetinvestmenthedgingandcashflowhedgingarehighlyeffective.Onthebasisoftheaboveassumptions,thepre-taxeffectsofreasonablechangesinexchangeratesoncurrentprofitsandlossesandshareholders'equityareasfollows,withothervariablesunchanged:
| Item | Changeininterestrate | Influenceonshareholders’equity |
| NetassetsinUSD | Up1.00%toRMB | 2,514,857.91 |
| NetassetsinUSD | Down1.00%toRMB | -2,514,857.91 |
(2)InterestRateRisk-CashFlowChangeRiskCashflowchangeriskcausedbyfinancialinstrumentsduetointerestratechangeisrelatedtobankloans.Byestablishinggoodrelationswithbanksandreasonableplanningofcreditline,creditvarietiesandcreditperiod,itistoguaranteesufficientbandlineofcreditandsatisfyallfinancialdemands.Moreover,itistoreducerisksofinterestrateuncertaintybyshorteningsingleloantermandestablishingrepaymentterms.
TheriskofchangeincashflowoffinancialinstrumentsduetothechangeofinterestrateoftheCompanyismainlyrelatedtotheborrowingofbanks.Asof31December2018,thelong-termandshort-termborrowingshadatotalbalanceofRMB14,815,132,931.63.Interestraterisksensitivityanalysis:
TheSensitivityanalysistointerestrateriskwasbasedonthefollowassumption:
●Marketinterestrateschangemayaffecttheinterestincomeorexpenseofvariableratefinancialinstruments;
?Forfixed-ratefinancialinstrumentsmeasuredatfairvalue,changesinmarketinterestratesonlyaffecttheirinterestincomeorexpenses;?Forderivativefinancialinstrumentsdesignatedashedginginstruments,changesinmarketinterestratesaffecttheirfairvalue,andallinterestratehedgesareexpectedtobehighlyeffective;?Calculatethefairvaluechangesofderivativefinancialinstrumentsandotherfinancialassetsandliabilitiesusingthediscountedcashflowmethodatthemarketinterestrateonthebalancesheetdate.Onthebasisoftheaboveassumptions,thepre-taxeffectsofreasonablechangesininterestratesoncurrentprofitsandlossesandshareholders'equityareasfollows,withothervariablesunchanged:
| Item | Changeininterestrate | ReportingPeriod | Sameperiodoflastyear | ||
| Influenceonprofits | Influenceonshareholders’equity | Influenceonprofits | Influenceonshareholders’equity | ||
| Interestofshort-termandlong-termborrowings | Up1% | -148,151,329.32 | -111,113,496.99 | -70,944,720.37 | -53,208,540.28 |
| Interestofshort-termand | Down1% | 148,151,329.32 | 111,113,496.99 | 70,944,720.37 | 53,208,540.28 |
2.CreditRiskOn30December2018,thebiggestcreditriskexposuremayleadtothefinancialassetslossesoftheCompanywasmainlyfromtheonepartyfailtoperformitsobligation,whichincluded:carryingamountrecognizedinconsolidatedbalancesheet.Forfinancialinstrumentsmeasuredatfairvalue,thecarryingvaluereflectitsriskexposure,butnotthebiggestone,andthebiggestriskexposurewillchangealongwiththechangeoffuturefairvalue.Inorderthereducethecreditrisk,theCompanyestablishagroupresponseforrecognizinglineofcredit,conductingcreditapprovalandothermonitorprocedurestoensurethatthenecessarymeasureswereusedtorecycleexpiredclaims.Inaddition,theCompanyateachbalancesheetdate,revieweverysinglereceivablesrecyclingsituation,toensurethatthemoneyunabletorecyclewithdrawnprovisionforbaddebtfully.Thus,theCompanymanagementbelievedthathaveassumethecreditrisktheCompanyshoulderedhadbeengreatlyreduced.TheCompany'sworkingcapitalwasinbankwithhighercreditrating,socreditriskofworkingcapitalwaslow.Ananalysisofafinancialassetthathassufferedasingleimpairment,includingfactorsthatdeterminetheimpairmentofthefinancialasset.TheCompanyhasadoptedthenecessarypoliciestoensurethatallsalescustomershaveagoodcredithistory.Exceptfortheitemslistedinthetablebelow,thecompanyhasnoothermajorcreditconcentrationrisks.
long-termborrowings
Item
| Item | Endingbalancee | Beginningbalance |
| Accountsreceivable | ||
| CEFC(Shanghai)GroupCo.,Ltd. | 300,027,889.84 | - |
| JiangsuHongtuSanbaoHigh-TechTechnologyCo.,Ltd. | 200,000,000.00 | - |
| ElionResourcesGroupLimited. | 120,000,000.00 | - |
| JizhongEnergyInternationalLogisticsGroupCo.,Ltd. | 130,000,000.00 | - |
| ChinaNuclearEngineeringConstructionGroupCo.,Ltd. | 90,000,000.00 | - |
| TahoeGroupCo,Ltd. | 50,000,000.00 | - |
| ChinaEnergyPowerFuelCo.,Ltd. | 50,000,000.00 | - |
| DSCHOLDINGSLIMITED | 24,421,550.36 | 23,250,858.84 |
| Otherreceivables | ||
| Subsidyforenergysaving | 152,402,680.00 | 152,402,680.00 |
| ShenzhenKonkaVideo&CommunicationSystemsEngineeringCo.,Ltd. | 18,115,952.51 | 18,115,952.51 |
| ChongqingKangjiaAutoElectronicCo.,Ltd. | 13,396,856.82 | 13,396,856.82 |
3.LiquidityRiskWhenmanagingliquidityrisk,theCompanymaintainedthemanagement’sbelievethatsupervisingthesufficientcashandcashequivalentstomeettheoperatingdemandoftheCompanyandreducetheinfluenceofthefluctuationofcashflow.ThemanagementoftheCompanymonitoredtheuseofbank’sloansandguaranteedtheobservanceoftheborrowingagreements.TheCompanytookthebank’sloansasthemainfinancingchannel.TheretainedamountofloansoftheCompanybytheendof30December2018wasRMB8,240,271,900.ThematurityofthefinancialliabilitiesheldbytheCompanyaccordingtotheundiscountedremainingcontractualobligationsisasfollows:
| Item | Within1year | Over1year |
| Non-derivativefinancialassetsandliabilities: | ||
| Accountsreceivable | 4,792,910,963.36 | 509,863,364.49 |
| Otherreceivables | 295,170,628.74 | 337,177,968.61 |
| Item | Within1year | Over1year |
| Short-termborrowings | 14,370,132,931.63 | - |
| Accountspayable | 4,039,580,367.14 | 321,077,477.07 |
| Interestpayable | 27,230,631.41 | - |
(II)OffsetbetweenFinancialAssetsandFinancialLiabilitiesAttheendoftheyear,thestatusofconfirmedfinancialassetsunderanenforceabletotaloffsetagreementorsimilaragreementisasfollows:
| Item | Period-end | ||
| Totalconfirmedfinancialassets(RMB’0,000) | Amountoffsetofconfirmedfinancialliabilities(RMB’0,000) | Netfinancialassetslistedinthebalancesheet(RMB’0,000) | |
| Bankdepositsandothercurrentassets | FixtimedepositorfinancialproductsofUSD822,9751millionandRMBRMB820million. | CommercialfinancingofUSD89.0451andRMB5460.8959million | USD75,000andRMB3,863,500 |
| Fixtimedeposit | FixtimedepositofRMB124,6.0687million | BankacceptancebillorL/CofRMB1200.87million | RMB5,7.3080million |
Attheendoftheyear,thestatusofconfirmedfinancialliabilitiesunderanenforceabletotaloffsetagreementorsimilaragreementisasfollows:
| Item | Period-end | ||
| Totalconfirmedfinancialliabilities(RMB’0,000) | Amountoffsetofconfirmedfinancialliabilities(RMB’0,000) | Netfinancialliabilitieslistedinthebalancesheet(RMB’0,000) | |
| Short-termborrowings | CommercialfinancingofUSD89,045,100andRMB5,460,895,900 | FixtimedepositorfinancialproductsofUSD822,975,100andRMB820million | USD75,000RMB3,863,500 |
| NotespayableorL/Cpayable | BankacceptancebillorL/CofRMB1200.87million | FixtimedepositofRMB124,6.0687million | RMB5,7.3080million |
X.TheDisclosureofFairValue1.EndingFairValueofAssetsandLiabilitiesatFairValue
| Item | Endingfairvalue | |||
| Fairvaluemeasurementitemsatlevel1 | Fairvaluemeasurementitemsatlevel2 | Fairvaluemeasurementitemsatlevel3 | Total | |
| I.Consistentfairvaluemeasurement | ||||
| (I)Financialassetsatfairvaluethroughprofitorloss | 5,464,984.92 | - | - | 5,464,984.92 |
| 1.Tradingfinancialassets | - | - | - | - |
| 2.Incomefrompurchaseagreementofforwardforeignexchange | 5,464,984.92 | - | - | 5,464,984.92 |
| (II)Available-for-salefinancialassets | - | - | - | - |
| 1.Debtinstrumentinvestment | - | - | - | - |
| 2.Equityinstrumentinvestment | - | - | - | - |
| 3.Other | - | - | - | - |
| Totalassetsofconsistentfairvaluemeasurement | 5,464,984.92 | 5,464,984.92 | ||
| (III)Financialliabilitiesatfairvaluethroughprofitorloss | 2,459,603.25 | - | - | 2,459,603.25 |
| 1.Incomefrompurchaseagreementofforwardforeignexchange | 2,459,603.25 | - | - | 2,459,603.25 |
| Totalliabilitiesofconsistentfairvalue | 2,459,603.25 | 2,459,603.25 | ||
| Item | Endingfairvalue | |||
| Fairvaluemeasurementitemsatlevel1 | Fairvaluemeasurementitemsatlevel2 | Fairvaluemeasurementitemsatlevel3 | Total | |
| measurement | ||||
| Totalassetsofinconsistentfairvaluemeasurement | - | - | - | - |
| Totalliabilitiesofinconsistentfairvaluemeasurement | - | - | - | - |
2.MarketPriceRecognitionBasisforConsistentandInconsistentFairValueMeasurementItemsatLevel1AsoftheendofReportingPeriod,theCompanyinlinewiththedifferenceofDFforwardforeignexchangepurchasecost(DFbasepriceonbalancesheetdate)onassetsbalancesheetandagreementDFforwardforeignexchangepurchasecost(DFexchangerateagreed)recognizedaslossesorprofits.XI.RelatedPartyandRelated-partyTransactions1.InformationRelatedtotheCompanyastheParentoftheCompany
| Name | Registrationplace | Natureofbusiness | Registeredcapital | ProportionofshareheldbytheCompanyastheparentagainsttheCompany(%) | ProportionofvotingrightsownedbytheCompanyastheparentagainsttheCompany(%) |
| OverseasChineseTownEnterprisesCo. | Shenzhen | Tourism,realestate,electronicsindustry | RMB12billion | 29.999997% | 29.999997% |
Note:thefinalcontrolleroftheCompanyisState-ownedAssetsSupervisionandAdministrationCommission
2.SubsidiariesoftheCompanyRefertoNoteVIII-1.EquityinSubsidiaries3.InformationontheAssociatedEnterprisesoftheCompanyRefertoNoteVIII-3.EquityinAssociatedEnterprisesfordetailsofsignificantassociatedenterprisesoftheCompany.InformationonotherjointventuresorassociatedenterprisesoccurringconnectedtransactionswiththeCompanyinReportingPeriod,orformingbalanceduetoconnectedtransactionsmadeinpreviousperiod:
| Name | RelationshipwiththeCompany |
| BeijingKonkaTechnologyCo.,Ltd. | Associatedenterprise |
| KunshanKonkaElectronicCo.,Ltd. | Associatedenterprise |
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | Associatedenterprise |
| ShenzhenYaodeTechnologyCo.,Ltd. | Associatedenterprise |
| NanjingSmartLightInformationTechnologyResearchInstituteCo.,Ltd. | Associatedenterprise |
| ShenzhenZhongbingKonkaTechnologyCo.,Ltd. | Associatedenterprise |
| ShenzhenRF-LINKTechnologyCo.,Ltd. | Associatedenterprise |
| ChengduOneBeltCommunicationEquipmentCo.,Ltd. | Associatedenterprise |
| OrientalHuijia(Zhuhai)AssetManagementCo.,Ltd. | Associatedenterprise |
| ZhuhaiJinsuPlasticCo.,Ltd. | Associatedenterprise |
| ShenzhenKonkaIntelligentElectricalApparatusCo.,Ltd. | Associatedenterprise |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | Associatedenterprise |
| ShenzhenKonkaPrecisionMouldManufactoryCo.,Ltd. | Associatedenterprise |
| BinzhouBeihaiWeiqiaoSolidWasteDisposalCo.,Ltd. | Associatedenterprise |
| NanjingSmartLightInformationTechnologyResearchInstituteCo.,Ltd. | Associatedenterprise |
| Name | RelationshipwiththeCompany |
| HelongjiangLongkangZhijiaTechnologyCo.,Ltd. | Associatedenterprise |
| AnhuiKonkaGreenLightingTechnologyCo.,Ltd. | Associatedenterprise |
| FeidiTechnology(Shenzhen)Co.,Ltd. | Associatedenterprise |
| ChongqingQingjia | Associatedenterprise |
| KonkaVentures | Associatedenterprise |
| AnhuiKonkaGreenLightingTechnologyCo.,Ltd. | Associatedenterprise |
4.InformationonOtherRelatedParties
| Name | RelationshipwiththeCompany |
| GuoguangEasternNetwork(Beijing)Co.,Ltd. | Shareholderoftheassociatedenterprise |
| GuanganOuqishiElectronicTechnologyCo.,Ltd. | Majority-ownedcompanycontrolledbyminorityshareholder |
| GuizhouJiaguidaTechnologyCo.,Ltd. | Majority-ownedcompanycontrolledbyminorityshareholder |
| GuoguangRuilian(Shenzhen)InternetTechnologyCo.,Ltd. | Associatedenterpriseofsubsidiary |
| UNIFORTUNE（HK）COMPANYLIMITED | Minorityshareholderofsubsidiary |
| AUJETINDUSTRYLIMITED | Minorityshareholderofsubsidiary |
| ShenzhenTradeLinkSupplyChainManagementCo.,Ltd. | Minorityshareholderofsubsidiary |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | Minorityshareholderofsubsidiary |
| ShenzhenHenglongtongTechnologyCo.,Ltd. | Minorityshareholderofsubsidiary |
| JiangxiMeijiIndustryCo.,Ltd. | Minorityshareholderofsubsidiary |
| ShenzhenShangyongtongInvestmentDevelopmentCo.,Ltd. | Minorityshareholderofsubsidiary |
| ChangrongMediaCo.,Ltd. | Finalcontrollerofminorityshareholderofsubsidiary |
| ShenzhenZhonglianDatongSupplyChainManagementandConsultingCo.,Ltd | Controlledbythefinalcontrollerofminorityshareholderofsubsidiary |
5.ListofRelated-partyTransactions(1)InformationonAcquisitionofGoodsandReceptionofLaborService①Informationonacquisitionofgoodsandreceptionoflaborservice
| Relatedparty | Content | ReportingPeriod | Sameperiodoflastyear |
| ShenzhenKonkaPrecisionMouldManufactoryCo.,Ltd.anditssubsidiaries | Purchaseofmaterials | 240,287,126.86 | 284,465,554.74 |
| OCTGroupanditssubsidiaries | Purchaseofmaterialsandservice | 23,908,088.67 | 77,699,708.46 |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | Commoditypurchase | 307,872,053.25 | 162,997,919.05 |
| GuanganOuqishiElectronicTechnologyCo.,Ltd. | Commoditypurchase | 2,072,830,346.78 | — |
| KunshanKonkaElectronicCo.,Ltd. | Purchaseofmaterialsandcommodity | 1,264,029,751.78 | 219,855,232.07 |
| GuizhouJiaguidaTechnologyCo.,Ltd. | Purchaseofmobilephones | 399,857,353.52 | — |
| Relatedparty | Content | ReportingPeriod | Sameperiodoflastyear |
| ShenzhenTradeLinkSupplyChainManagementCo.,Ltd. | Purchaseofmaterials | 126,942,856.71 | — |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | Commoditypurchase | 34,645,938.39 | — |
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | Commoditypurchase | 19,313,938.76 | — |
| ZhuhaiJinsuPlasticCo.,Ltd. | Purchaseofmaterials | 4,604,195.82 | 15,492,478.63 |
| ChangrongMediaCo.,Ltd. | Advertisingagency | 3,041,943.35 | — |
| ShenzhenKonkaIntelligentElectricalApparatusCo.,Ltd. | Commoditypurchase | 1,812,643.12 | 4,137,056.47 |
| GuoguangRuilian(Shenzhen)InternetTechnologyCo.,Ltd. | Commoditypurchase | 1,284,602.58 | 326,074.94 |
| ShenzhenZhonglianDatongSupplyChainManagementandConsultingCo.,Ltd | Consultancy | 1,160,469.47 | 3,784,772.66 |
| ShenzhenYaodeTechnologyCo.,Ltd. | Purchaseofmaterials | 930,320.20 | — |
| ShenzhenHenglongtongTechnologyCo.,Ltd. | Purchaseof | 228,709.45 | — |
| Relatedparty | Content | ReportingPeriod | Sameperiodoflastyear |
| materials | |||
| ShenzhenZhongbingKonkaTechnologyCo.,Ltd. | Purchaseofmaterials | 180,683.76 | — |
| ShenzhenRF-LINKTechnologyCo.,Ltd. | Purchaseofmaterials | 151,150.76 | — |
| JiangxiYoushiXinrongCultureCommunicationCo.,Ltd. | Advertisingagency | — | 19,811,320.75 |
| BeijingKonkaTechnologyCo.,Ltd. | Commoditypurchase | 240,225.43 | 551,481.65 |
②Informationofsalesofgoodsandprovisionoflaborservice
| Relatedparty | Content | ReportingPeriod | Sameperiodoflastyear |
| UNIFORTUNE（HK）COMPANYLIMITED | Salesofmaterials | 3,595,163,483.38 | — |
| AUJETINDUSTRYLIMITED | Salesofmaterials | 3,543,163,233.52 | — |
| KunshanKonkaElectronicCo.,Ltd. | Salesofmaterials | 895,011,807.00 | 260,670,330.28 |
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | Commoditysales | 534,811,373.44 | — |
| GuanganOuqishiElectronicTechnologyCo.,Ltd. | Salesofmaterials | 200,316,791.46 | — |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | Salesofmaterialsandprovidingservices | 124,076,873.37 | 61,695,634.89 |
| GuizhouJiaguidaTechnologyCo.,Ltd. | Salesofmaterials | 57,213,274.71 | — |
| ShenzhenYaodeTechnologyCo.,Ltd. | Salesofmaterials | 52,989,502.78 | — |
| Relatedparty | Content | ReportingPeriod | Sameperiodoflastyear |
| OCTGroupanditssubsidiaries | Salesofcommodityandprovidingservices | 38,726,630.10 | 25,425,675.14 |
| ShenzhenKonkaPrecisionMouldManufactoryCo.,Ltd.anditssubsidiaries | Providinglaborservice | 18,596,740.44 | 18,956,689.52 |
| HelongjiangLongkangZhijiaTechnologyCo.,Ltd. | Commoditysales | 15,030,200.64 | — |
| ShenzhenTradeLinkSupplyChainManagementCo.,Ltd. | Salesofmaterials | 12,952,947.60 | — |
| GuoguangRuilian(Shenzhen)InternetTechnologyCo.,Ltd. | Advertisingservice | 3,487,294.25 | 940,650.14 |
| NanjingSmartLightInformationTechnologyResearchInstituteCo.,Ltd. | Providingservice | 1,456,310.70 | — |
| ShenzhenZhongbingKonkaTechnologyCo.,Ltd. | Salesofmaterialsandprovidingservices | 999,326.31 | 2,568,447.15 |
| FeidiTechnology(Shenzhen)Co.,Ltd. | Rentalservice | 977,117.64 | — |
| GuoguangEasternNetwork(Beijing)Co.,Ltd. | Advertisingservice | 793,092.82 | 3,100,030.29 |
| ShenzhenRF-LINKTechnologyCo.,Ltd. | Rentalservice | 593,665.05 | — |
| ChengduOneBeltCommunicationEquipmentCo.,Ltd. | Commoditysales | 564,655.17 | — |
| OrientalHuijia(Zhuhai)AssetManagemntCo.,Ltd. | Rentalservice | 191,099.97 | — |
| AnhuiKonkaGreenLightingTechnologyCo.,Ltd. | Providingservice | — | 648,888.41 |
| BeijingKonkaTechnologyCo.,Ltd. | Providingservice | — | 62,966.96 |
| ShenzhenKonkaIntelligentElectricalApparatusCo.,Ltd. | Commoditysales | — | 20,150.77 |
(2)InformationonRelated-partyLease
| Nameoflessor | Categoryofleasedassets | TheleasefeeconfirmedintheReportingPeriod | Theleasefeeconfirmedinthesameperiodoflast |
| year | |||
| OCTGroupanditssubsidiaries | Commercialresidentialbuildingandofficebuilding | 1,541,573.44 | 601,969.48 |
(3)InformationonRelated-partyGuarantee①TheCompanywasguarantor
| Securedparty | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| AnhuiTongchuang | 1,410.00 | CNY | 7November2018 | 7November2019 | Not |
| AnhuiTongchuang | 2,000.00 | CNY | 9May2018 | 9May2019 | Not |
| AnhuiTongchuang | 2,150.00 | CNY | 19June2018 | 12June2019 | Not |
| AnhuiTongchuang | 5,000.00 | CNY | 20September2018 | 14August2019 | Not |
| TelecommunicationTechnology | 5,35.46 | CNY | 5February2018 | 4February2019 | Not |
| KonkaCommercialFactoring(Shenzhen)Co.,Ltd. | 13,580.00 | CNY | 27June2018 | 26June2019 | Not |
| KonkaCommercialFactoring(Shenzhen)Co.,Ltd. | 10,000.00 | CNY | 21September2018 | 29August2019 | Not |
| HongKongKonka | 3,000.00 | USD | 31May2018 | 30May2019 | Not |
| HongKongKonka | 350.00 | USD | 25July2018 | 25March2019 | Not |
| HongKongKonka | 1,500.00 | USD | 7August2018 | 6August2019 | Not |
| Securedparty | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| AnhuiKonka | 20,000.00 | CNY | 2May2018 | 9April2019 | Not |
| AnhuiKonka | 8,000.00 | CNY | 1June2018 | 1June2019 | Not |
| AnhuiKonka | 10,000.00 | CNY | 6December2018 | 6December2019 | Not |
| SichuanKonka | 5,000.00 | CNY | 28May2018 | 24May2025 | Not |
| XingDaHongYe | 5,800.00 | CNY | 21November2018 | 21November2020 | Not |
| XingDaHongYe | 950.00 | CNY | 13November2018 | 13November2020 | Not |
| EconTechnology | 3,135.00 | CNY | 10October2018 | 10October2019 | Not |
| JiangxiKonka | 10,000.00 | CNY | 4December2018 | 31December2019 | Not |
| RushanYikeWaterTreatmentCo.,Ltd. | 15,000.00 | CNY | 29December2016 | 28December2026 | Not |
| JiangxiXinxinJiananEngineerCo.,Ltd. | 10,000.00 | CNY | 16December2016 | 16December2018 | Not |
| JiangxiZhongyiDecorationMaterialCo.,Ltd. | 10,000.00 | CNY | 16December2016 | 16December2018 | Not |
| JiangxiShanshiTechnologyDevelopmentCo.,Ltd. | 10,000.00 | CNY | 16December2016 | 16December2018 | Not |
RefertoNoteXII-2.-(2)ContingentLiabilitiesGeneratedfromProvidingDebtGuaranteesforOtherEntitiesandFinancialInfluencethereoffordetailsofexternalguaranteesoftheCompany.②TheCompanywassecuredparty
| Guarantor: | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| ChuzhouState-ownedAssetsManagementCo.,Ltd. | 4,400.00 | CNY | 2May2018 | 9April2019 | Not |
| ChuzhouState-ownedAssetsManagementCo.,Ltd. | 1,760.00 | CNY | 1June2018 | 1June2019 | Not |
| ChuzhouState-ownedAssetsManagementCo.,Ltd. | 2,200.00 | CNY | 6December2018 | 6December2019 | Not |
| ShenzhenKangweiInvestmentPartnership(LimitedPartnership) | 2,450.00 | CNY | 28May2018 | 24May2025 | Not |
| HuZehong | 2,610.00 | CNY | 21November2018 | 21November2020 | Not |
| HuZehong | 465.50 | CNY | 13November2018 | 13November2020 | Not |
| YantaiBaijiangyuanBusinessManagementCenter(LimitedPartnership) | 816.35 | CNY | 10October2018 | 10October2019 | Not |
| YantaiFengqingtaiInvestmentCenter(LimitedPartnership) | 363.03 | CNY | 10October2018 | 10October2019 | Not |
| YantaiQingrunyuanBusinessManagementCenter(LimitedPartnership) | 333.56 | CNY | 10October2018 | 10October2019 | Not |
| YantaiQingjiangchuanBusinessManagementCenter(LimitedPartnership) | 23.20 | CNY | 10October2018 | 10October2019 | Not |
| ZhuXinming | 4,900.00 | CNY | 4December2018 | 31December2019 | Not |
| HunanVaryTechPackingCo.,Ltd. | 2,000.00 | CNY | 5April2017 | --- | Not |
| GuizhouHuajinrunTechnologyGroupCo.,Ltd. | 75.59 | CNY | 16April2018 | --- | Not |
| HuanjiaGroupCo.,Ltd. | 24,500.00 | CNY | 7August2018 | 6August2023 | Not |
| AUJETINDUSTRYLIMITED | 245.00 | USD | 18May2018 | 17May2019 | Not |
| AUJETINDUSTRYLIMITED | 147.00 | USD | 6August2018 | 5August2019 | Not |
| AUJETINDUSTRYLIMITED | 98.00 | USD | 14August2018 | 13August2019 | Not |
| AUJETINDUSTRYLIMITED | 147.00 | USD | 17August2018 | 16August2019 | Not |
| AUJETINDUSTRYLIMITED | 147.00 | USD | 27August2018 | 26August2019 | Not |
| AUJETINDUSTRYLIMITED | 98.00 | USD | 14September2018 | 13September2019 | Not |
| AUJETINDUSTRYLIMITED | 245.00 | USD | 26September2018 | 25September2019 | Not |
| AUJETINDUSTRYLIMITED | 98.00 | USD | 28September2018 | 27September2019 | Not |
| AUJETINDUSTRYLIMITED | 245.00 | USD | 9October2018 | 8October2019 | Not |
| AUJETINDUSTRYLIMITED | 686.00 | USD | 11October2018 | 10October2019 | Not |
| AUJETINDUSTRYLIMITED | 392.00 | USD | 16October2018 | 15October2019 | Not |
| AUJETINDUSTRYLIMITED | 245.00 | USD | 23October2018 | 22October2019 | Not |
| AUJETINDUSTRYLIMITED | 49.00 | USD | 26October2018 | 25October2019 | Not |
| AUJETINDUSTRYLIMITED | 171.50 | USD | 1November2018 | 31October2019 | Not |
| AUJETINDUSTRYLIMITED | 34.30 | USD | 28December2018 | 27December2019 | Not |
| GuizhouHuajinrunTechnologyGroupCo.,Ltd. | 1,620.00 | USD | 9May2018 | --- | Not |
| ShenzhenMusenIndustryCo.,Ltd. | 9,800.00 | CNY | 18April2018 | 18March2019 | Not |
| ShenzhenUnifortuneSupplyChainManagementCo.,Ltd. | 1,470.00 | USD | 26September2018 | 29October2019 | Not |
| ShenzhenUnifortuneSupplyChainManagementCo.,Ltd. | 2,940.00 | USD | 28May2018 | 29October2019 | Not |
| WuGuorenandXiaoYongsong | 2,000.00 | USD | 21August2017 | 31December2018 | Not |
| WuGuorenandXiaoYongsong | 3,500.00 | USD | 11November2016 | 17October2018 | Not |
| WuGuorenandXiaoYongsong | 1,000.00 | USD | 6March2016 | 31December2018 | Not |
| WuGuorenandXiaoYongsong | 1,000.00 | USD | 24April2017 | 31December2018 | Not |
| WuGuorenandXiaoYongsong | 1,000.00 | USD | 11May2017 | 31December2018 | Not |
| WuGuorenandXiaoYongsong | 500.00 | USD | 21June2017 | 20June2018 | Not |
| WuGuorenandXiaoYongsong | 500.00 | USD | 3July2017 | 2July2018 | Not |
| WuGuorenandXiaoYongsong | 500.00 | USD | 24July2017 | 24July2018 | Not |
| WuGuorenandXiaoYongsong | 500.00 | USD | 9August2017 | 8August2018 | Not |
| WuGuorenandXiaoYongsong | 2,000.00 | USD | 6September2017 | 5September2018 | Not |
Note:ThereasonfortheCompany’sactingasthesecuredpartywasthattheCompanywasprovidedwithcounterguaranteeregardingentrustedloansfromtheCompanytonon-wholly-ownedsubsidiariesbyminorityshareholdersofaforesaidnon-wholly-ownedsubsidiaries.(6)InformationonInter-bankLendingofCapitalofRelatedParties
| Relatedparty | Amount | Startdate | Enddate | Duration | Interestrate |
| Borrowing: | |||||
| OCTGroup | 10,000.00 | 25June2018 | 12April2023 | 14June2018to6June2021 | 5.40% |
| OCTGroup | 2,000.00 | 25June2018 | 12April2023 | 19July2018to14June2021 | 5.60% |
| OCTGroup | 140,000.00 | 25June2018 | 12April2023 | 14May2018to13May2019 | 6.00% |
| OCTGroup | 48,000.00 | 25June2018 | 12April2023 | 19July2018to19July2019 | 6.00% |
| OCTGroup | 100,000.00 | 25June2018 | 12April2023 | 19October2018to18October2019 | 6.00% |
| OCTGroup | 50,000.00 | 22December2018 | 21April2019 | 22December2018to21April2019 | 5.00% |
| OCTGroup | 27,656.00 | 26April2018 | 31August2019 | 26April2018to31August2019 | 5.00% |
| OCTGroup | 50,000.00 | 17December2018 | 12December2019 | 17December2018to12December2019 | 5.00% |
| ChuzhouHanshangElectric | 4,395.00 | 21September | 31December | 21September2018to | 7.00% |
| Relatedparty | Amount | Startdate | Enddate | Duration | Interestrate |
| ApplianceCo.,Ltd. | 2018 | 2018 | 31December2018 | ||
| ChuzhouHanshangElectricApplianceCo.,Ltd. | 6,000.00 | 17July2018 | 31December2018 | 17July2018to31December2018 | 7.00% |
| Lending: | |||||
| NanjingKangxingTechnologyIndustrialParkOperationandManagementCo.,Ltd. | 77,600.00 | 22October2018 | 21April2019 | 22October2018to21April2019 | 8.00% |
| NanjingKangxingTechnologyIndustrialParkOperationandManagementCo.,Ltd. | 29,400.00 | 21December2018 | 20March2019 | 21December2018to20March2019 | 8.00% |
| NanjingKangxingTechnologyIndustrialParkOperationandManagementCo.,Ltd. | 54,400.00 | 22October2018 | 21April2019 | 22October2018to21April2019 | 8.00% |
| NanjingKangxingTechnologyIndustrialParkOperationandManagementCo.,Ltd. | 20,500.00 | 21December2018 | 20December2019 | 21December2018to20December2019 | 8.00% |
| YibinOCTSanjiangRealEstateCo.,Ltd. | 4,000.00 | 25October2018 | 24October2021 | 25October2018to24October2021 | 5.70% |
| Relatedparty | Amount | Startdate | Enddate | Duration | Interestrate |
| YibinOCTSanjiangRealEstateCo.,Ltd. | 6,000.00 | 25October2018 | 24April2020 | 25October2018to24April2020 | 5.70% |
| HunanVaryTechPackingCo.,Ltd. | 2,000.00 | 16March2017 | 15March2019 | 16March2017to15March2019 | 8.00% |
Note1:In2018,theCompanywasprovidedloansbyOCTGroupwithrecognizedinterestexpenseofRMB107,474,353.32.Note2:In2018,ChuzhouHanshangElectricApplianceCo.,Ltd.providedtheloanofRMB1,039,500millionforElectricalApplianceTechnologywithrecognizedinterestexpenseofRMB4,284,773.93recognizedbyElectricalApplianceTechnology.Note3:In2018,ElectronicsTechnology,theCompany’ssubsidiary,providedaloanofRMB776,000,000.00andaloanofRMB294,000,000.00forNanjingKonkaStarTechnologyIndustrialParkManagementCo.,Ltd.withinterestincomeofRMB12,962,222.22byElectronicsTechnology.Note4:In2018,ShenzhenKonkaInvestmentHoldingCo.,Ltd.,thesubsidiaryoftheCompany,providedaloanofRMB544,000,000.00andaloanofRMB205,000,000.00forNanjingKonkaStarTechnologyIndustrialParkManagementCo.,Ltd.withinterestincomeofRMB9,084,222.23recognizedbyKonkaInvestmentHoldingCo.,Ltd.Note5:In2018,CommunicationTechnology,thesubsidiaryoftheCompany,providedaloanofRMB100,000,000.00forYibinOCTSanjiangRealEstateCo.,Ltd.withinterestincomeofRMB1,076,666.66recognizedbyCommunicationTechnology.Note6:TheentrustedloanprovidedbytheCompanyforVaryPackingrecognizedtheinvestmentincomeofRMB1,389,042.49in2018.(5)InformationonRemunerationforKeyManagementPersonnel
| Item | Reportingperiod | Sameperiodoflastyear |
| Remunerationforkeymanagementpersonnel | 2,132.92 | 1,292.40 |
6.AccountsReceivableandPayableofRelatedParty
(1)AccountsReceivable
| Item | Endingbalance | Beginningbalance | ||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | |
| Accountsreceivable: | ||||
| KunshanKonkaElectronicCo.,Ltd. | 498,176,202.82 | 34,872,334.20 | 340,827,332.77 | 6,816,546.66 |
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | 225,683,544.96 | 15,797,848.15 | — | — |
| GuizhouJiaguidaTechnologyCo.,Ltd. | 34,560,012.48 | 2,419,200.87 | — | — |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | 20,049,748.74 | 1,403,482.41 | 50,237,204.89 | 1,586,224.62 |
| ShenzhenKonkaPrecisionMouldManufactoryCo.,Ltd.anditssubsidiaries | 13,445,059.89 | 941,154.19 | 13,685,968.41 | 614,448.23 |
| OCTGroupanditssubsidiaries | 12,212,400.48 | 1,606,135.40 | 12,597,677.70 | 398,014.48 |
| BinzhouBeihaiWeiqiaoSolidWasteDisposalCo.,Ltd. | 6,096,891.16 | 426,782.38 | — | — |
| GuoguangRuilian(Shenzhen)InternetTechnologyCo.,Ltd. | 3,696,532.00 | 258,757.24 | — | — |
| NanjingSmartLightInformationTechnologyResearchInstituteCo., | 1,500,000.00 | 105,000.00 | — | — |
| Item | Endingbalance | Beginningbalance | ||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | |
| Ltd. | ||||
| HelongjiangLongkangZhijiaTechnologyCo.,Ltd. | 822,825.15 | 57,597.76 | — | — |
| GuoguangEasternNetwork(Beijing)Co.,Ltd. | 430,948.43 | 30,166.39 | 889,327.11 | 17,786.54 |
| AnhuiKonkaGreenLightingTechnologyCo.,Ltd. | — | — | 2,479.62 | 49.59 |
| Total | 816,674,166.11 | 57,918,458.99 | 418,239,990.50 | 9,433,070.12 |
| Notesreceivable: | ||||
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | 240,100,000.00 | — | — | — |
| KunshanKonkaElectronicCo.,Ltd. | — | — | 20,000,000.00 | — |
| ShenzhenKonkaPrecisionMouldManufactoryCo.,Ltd.anditssubsidiaries | — | — | 657,263.10 | — |
| Total | 240,100,000.00 | — | 20,657,263.10 | — |
| Otherreceivables: | ||||
| JiangxiMeijiIndustryCo.,Ltd. | 74,788,640.31 | 1,495,772.81 | — | — |
| OCTGroupanditssubsidiaries | 20,520,295.97 | 8,654,793.94 | 20,335,596.53 | 8,752,805.29 |
| ShenzhenKonkaPrecisionMouldManufactoryCo.,Ltd.anditssubsidiaries | 4,448.00 | 2,224.00 | 4,448.00 | 2,224.00 |
| Item | Endingbalance | Beginningbalance | ||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | |
| GuoguangEasternNetwork(Beijing)Co.,Ltd. | — | — | 5,600.00 | 112.00 |
| Total | 95,313,384.28 | 10,152,790.75 | 20,345,644.53 | 8,755,141.29 |
| Long-termreceivables: | ||||
| ShenzhenRF-LINKTechnologyCo.,Ltd. | 14,086,876.64 | — | — | — |
| FeidiTechnology(Shenzhen)Co.,Ltd.anditssubsidiaries | 43,476,841.21 | — | — | — |
| Total | 57,563,717.85 | — | — | — |
| Prepayments: | ||||
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | 5,852,304.78 | — | — | — |
| ShenzhenKonkaPrecisionMouldManufactoryCo.,Ltd.anditssubsidiaries | 4,673,013.98 | — | — | — |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | 4,488,599.93 | — | — | — |
| ChangrongMediaCo.,Ltd. | 800,000.00 | — | — | — |
| ChongqingQingjia | 499,972.16 | — | — | — |
| GuoguangRuilian(Shenzhen)InternetTechnologyCo.,Ltd. | 9,209.28 | — | — | — |
| OCTGroupanditssubsidiaries | 5,000.00 | — | — | — |
| Item | Endingbalance | Beginningbalance | ||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | |
| Total | 16,328,100.13 | — | — | — |
(2)AccountsPayable
| Item | Endingbalance | Beginningbalance |
| Accountspayable: | ||
| KunshanKonkaElectronicCo.,Ltd. | 475,848,121.39 | 17,018,441.87 |
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | 209,523,283.33 | — |
| ShenzhenKonkaPrecisionMouldManufactoryCo.,Ltd.anditssubsidiaries | 17,153,118.33 | 37,592,153.20 |
| ShenzhenShangyongtongInvestmentDevelopmentCo.,Ltd. | 9,543,100.00 | 9,543,100.00 |
| OCTGroupanditssubsidiaries | 1,289,224.82 | 23,738,766.66 |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | 369,488.00 | 31,386,862.99 |
| ShenzhenRF-LINKTechnologyCo.,Ltd. | 128,562.88 | — |
| ShenzhenHenglongtongTechnologyCo.,Ltd. | 122,247.47 | — |
| ShenzhenYaodeTechnologyCo.,Ltd. | 77,602.03 | — |
| ZhuhaiJinsuPlasticCo.,Ltd. | 55,912.37 | 181,072.00 |
| ShenzhenTradeLinkSupplyChainManagementCo.,Ltd. | 38,426.68 | — |
| ShenzhenKonkaIntelligentElectricalApparatusCo.,Ltd. | — | 1,686,317.71 |
| ShenzhenDekangElectronicsCo.,Ltd. | — | 358,929.03 |
| GuoguangRuilian(Shenzhen)InternetTechnologyCo.,Ltd. | — | 326,074.94 |
| Total | 714,149,087.30 | 121,831,718.40 |
| Item | Endingbalance | Beginningbalance |
| Notespayable: | ||
| ShenzhenKonkaPrecisionMouldManufactoryCo.,Ltd.anditssubsidiaries | 4,290,778.05 | 55,513,548.64 |
| ShenzhenHenglongtongTechnologyCo.,Ltd. | 224,422.12 | — |
| OCTGroupanditssubsidiaries | — | 9,341,980.07 |
| KunshanKonkaElectronicCo.,Ltd. | — | 2,348,210.23 |
| ZhuhaiJinsuPlasticCo.,Ltd. | — | 1,000,000.00 |
| Total | 4,515,200.17 | 68,203,738.94 |
| Advancesfromcustomers: | ||
| OCTGroupanditssubsidiaries | 3,333,333.32 | 15,416,818.63 |
| KunshanKonkaElectronicCo.,Ltd. | — | 7,105,969.56 |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | — | 151,922.19 |
| ShenzhenZhongbingKonkaTechnologyCo.,Ltd. | — | 38,133.55 |
| GuoguangRuilian(Shenzhen)InternetTechnologyCo.,Ltd. | — | 9,390.72 |
| Total | 3,333,333.32 | 22,722,234.65 |
| Otherpayables: | ||
| ChuzhouHanshangElectricApplianceCo.,Ltd. | 108,380,202.82 | — |
| FeidiTechnology(Shenzhen)Co.,Ltd.anditssubsidiaries | 5,638,548.27 | — |
| ShenzhenRF-LINKTechnologyCo.,Ltd. | 5,100,000.00 | — |
| NanjingSmartLightInformationTechnologyResearchInstituteCo.,Ltd. | 3,000,000.00 | — |
| KonkaVentures | 2,500,000.00 | — |
| Item | Endingbalance | Beginningbalance |
| OCTGroupanditssubsidiaries | 280,218.08 | 224,428.80 |
| GuoguangRuilian(Shenzhen)InternetTechnologyCo.,Ltd. | 100,000.00 | 100,000.00 |
| ShenzhenKonkaIntelligentElectricalApparatusCo.,Ltd. | 35,755.00 | 101,885.00 |
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | 23,695.00 | — |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | 20,000.00 | 2,369,781.35 |
| KunshanKonkaElectronicCo.,Ltd. | 10,000.00 | 10,000.00 |
| ChangrongMediaCo.,Ltd. | 7,000.00 | — |
| ChongqingKonkaAutoElectronicsCo.,Ltd. | — | 1,070,875.91 |
| ShenzhenKonkaPrecisionMouldManufactoryCo.,Ltd.anditssubsidiaries | — | 590,000.00 |
| ShenzhenZhonglianDatongSupplyChainManagementandConsultingCo.,Ltd | — | 79,533.29 |
| AnhuiKonkaGreenLightingTechnologyCo.,Ltd. | — | 3,338.38 |
| Total | 125,095,419.17 | 4,549,842.73 |
| Interestpayable: | ||
| OCTGroupanditssubsidiaries | 24,158,666.48 | 5,834,416.68 |
| Total | 24,158,666.48 | 5,834,416.68 |
XII.CommitmentsandContingency
1.SignificantCommitments
(1)CapitalCommitment
| Item | Endingbalance | Beginningbalance |
| Commitmentssignedbuthasn’tbeenrecognizedinfinancialstatements | ||
| —Commitmentonconstructionandpurchaseoflong-livedassets | — | — |
| -Contractwithlargeamount | 1,011,650,352.93 | 247,552,974.60 |
| -Foreigninvestmentcommitments | — | — |
| Total | 1,011,650,352.93 | 247,552,974.60 |
(2)OperatingLeaseCommitmentsAsofthebalancesheetdate,theirrevocableoperatingleasecommitmentsthattheCompanysignedwereasfollowed:
| Item | Endingbalance | Beginningbalance |
| Minimumleasepaymentsofirrevocableoperatinglease | ||
| 1yearafterbalancedate | 21,179,914.81 | 19,362,845.58 |
| 2yearafterbalancedate | 10,038,667.42 | 10,257,149.32 |
| 3yearafterbalancedate | 3,662,167.92 | 4,199,375.82 |
| Followingyears | 3,938,998.40 | 2,570,971.55 |
| Total | 38,819,748.55 | 36,390,342.27 |
(3)OtherCommitments
Asof31December2018,therewerenoothersignificantcommitmentsfortheCompanytodisclose.
2.Contingency(1)ContingentLiabilitiesGeneratedfromPendingActionandArbitrationandFinancialInfluencethereof①DuetotheproblemsofqualityandconstructiondelayinthesettlementofintelligentengineeringprojectbetweentheCompanyandShenzhenGNGCo.,Ltd,theydidn’tagreeontherelateddeductions.On28September2017,ShenzhenGNGCo.,LtdfiledalawsuittoPeople’sCourtofNanshanDistrict,ShenzhenforthepaymentinprojectarrearsintheConstructionContractofKonkaR&DBuildingIntelligentEngineering,whichrequiredtheCompanytopayRMB2,770,487.13fortheprojectarrearsandRMB340,761.69fortheinterestsoftheprojectarrears.UptotheissuancedateofthisReport,People’sCourtofNanshanDistrict,Shenzhenhasn’tgavejudgment.②DuetothedisputeinrentleasecontractamongtheCompany’ssubsidiary-MudanjiangAppliances,HeilongjiangJinriOptoelectronicsTechnologyCo.,Ltd.andJinyueGroupCo.,Ltd.,thePeople'sCourtofAiminDistrict,MudanjiangCity,HelongjiangProvincemadethemainciviljudgment(2016)Hei1004MinchuNo.604on25August2017.TheJudgmentwasasfollows:ThedefendantsHeilongjiangJinriOptoelectronicsTechnologyCo.,Ltd.andJinyueGroupCo.,Ltd.shouldjointlypaytheplaintiff-MudanjiangAppliancesatotalofRMB3,656,910.82inoccupancyfees,rent,andinterest.Asoftheissuedateofthisreport,ithasnotyetbeenimplementedcompletely.③Accordingtotheciviljudgment(2018)GMCNo.110madebytheHigherPeople'sCourtofJiangxiProvinceonSeptember27,2018onthedisputesarisenfromaloancontractbetweentheminorityshareholdersofJiangxiKonka,asubsidiaryoftheCompany,andChinaGreatWallAMCJiangxiBranch,the100%equityofNanocrystallineandthe100%equityofXinfengMicrocrystalineheldbyJiangxiKonkawerefrozen;OnSeptember30,2018,JiangxiKonkafiledanapplicationforreconsideration,andonOctober11,2018,JiangxiKonkafiledanapplicationforsupplementaryreconsideration.Accordingtooneoftheciviljudgments(2018)GMCNo.110madebytheHigherPeople'sCourtofJiangxiProvinceonNovember16,2018,thecollateralofthefirsttrialwassealedupordetained.④Accordingtotheciviljudgment(2016)Gan01MCNo.628madebyNanchangIntermediatePeople'sCourtonJuly25,2016onthedisputesarisenfromtheconstructioncontractbetweenXinfengMicrocrystalline,asubsidiaryofJiangxiKonka,andJiangxiLongjiConstructionEngineeringCo.,Ltd.,thedefendantXinfengMicrocrystallineshouldpaytheplaintiffRMB19,741,456.02fortheprojectandtheinterest
therefromwithin10daysafterthejudgmenttookeffect.InterestwascalculatedaccordingtothesimilarlendingrateforthesameperiodissuedbythePeople'sBankofChinabasedontheprincipalofRMB19,741,456.02fromNovember24,2016tothedatewhentheprincipalamountwaspaidoff.BothXinfengMicrocrystallineandJiangxiLongjiConstructionEngineeringCo.,Ltd.refusedtoaccepttheabovejudgmentandfiledanappeal.TheHigherPeople'sCourtofJiangxiProvincemadeaciviljudgment(2018)GMZNo.519onNovember6,2018tomaintaintheoriginaljudgment.OnFebruary21,2019,NanchangIntermediatePeople'sCourtissuedthe(2018)Gan01ZNo.620AnnouncementontheplanofevaluationandauctionofthelandownedbyXinfengMicrocrystalline,whichlocatesatFenghuangshan,AnyiCounty,JiangxiProvinceforindustrialdevelopment.XinfengMicrocrystallineandtheabove-groundleaseholdersarerequestedtomoveouttheareawithin60daysfromthedateoftheannouncementposting,andcompulsoryexecutionwillbecarriedoutforoverstay.(2)ContingentLiabilitiesGeneratedfromProvidingDebtGuaranteesforOtherEntitiesandFinancialInfluencethereof①TheCompanysignedthemaximumamountguaranteecontract(No.18czA0012-a-XCYZGBZD2018)withChuzhouBranchofChinaCiticBankonNov.7,2018,inwhichtheCompanyprovidedthemaximumcreditguaranteeofRMB58milliontoAnhuiKonkaTongchuangInternationalTradeCo.,Ltd.withinthreeyearsfromthedaywhentheobligationfulfillmentperiodstipulatedinthespecificbusinesscontractexpired,andtheguaranteemodewasthejointliabilityguaranty.ThecreditlineismainlyusedtoopenandaccepttheletterofcreditofAnhuiTongchuangInternationalTradeCo.,Ltd.andobtainthefinancingcreditandotherdailybusinessesfromthebank.TheguaranteeamounthasbeenusedRMB14,100,000.00byDec.31,2018.②TheCompanysignedtheguaranteecontractofmaximumamount(No.CZZHZGBZ2018No.0103)withChengzhongBranchofChuzhouEasternAnhuiRuralCommercialBankon9May2018,inwhichtheCompanyprovidedcreditguaranteeofRMB45,000,000.00toAnhuiTongchuangfrom9May2018to9May2019.ThecreditlineismainlyusedtoopenandaccepttheletterofcreditofAnhuiTongchuangandobtainthefinancingcreditandotherdailybusinessesfromthebank.Asof30June2018,theguaranteeamounthasbeenusedRMB20,000,000.00.
③TheCompanysignedthemaximumamountguaranteecontract(No.CZGSBOZGBT20180011)withChuzhouBranchofChinaEverbrightBankonJune19,2018,inwhichtheCompanyprovidedthemaximumcreditguaranteeofRMB30milliontoAnhuiKonkaTongchuangInternationalTradeCo.,Ltd.FromJune19,2018toJune12,2019,andtheguaranteemodewasthejointliabilityguaranty.ThecreditlineismainlyusedtoopenandaccepttheletterofcreditofAnhuiTongchuangInternationalTradeCo.,Ltd.andobtainthefinancingcreditandotherdailybusinessesfromthebank.TheguaranteeamounthasbeenusedRMB21,500,000.00byDec.31,2018.④TheCompanysignedthemaximumamountguaranteecontract(No.00035ZSYGBZD2018)(361006)withHefeiBranchofChinaZheshangBankonSep.20,2018,inwhichtheCompanyprovidedthemaximumcreditguaranteeofRMB55milliontoAnhuiKonkaTongchuangInternationalTradeCo.,Ltd.withintwoyearsfromthedaywhenthedebtor’sobligationfulfillmentperiodstipulatedinthedebtcontractsignedbetweenAnhuiTongchuangandHefeiBranchofChinaZheshangBankexpired,andtheguaranteemodewasthejointliabilityguaranty.ThecreditlineismainlyusedtoopenandaccepttheletterofcreditofAnhuiTongchuangInternationalTradeCo.,Ltd.andobtainthefinancingcreditandotherdailybusinessesfromthebank.TheguaranteeamounthasbeenusedRMB50,000,000.00byDec.31,2018.⑤TheCompanysignedthecreditlineagreement(No.1000014ZZYFEXZD2018)withBankofChinaShenzhenFutianBranchandShenzhenKonkaTelecommunicationTechnologyCo.,Ltd.toapplyforacreditlineofRMB5,500,000,000.00,andstipulatethatthecreditlineRMB500,000,000.00inthecomprehensivecreditlinewouldbeprovidedtothesubsidiary(TelecommunicationTechnologyCompany)foruse.Thecreditlinetypewastheacceptancebill,non-financialguaranteeandtradefinancingcredit,andtheCompanyassumedjointliabilityfortherepayment.ThecreditlineperiodshallbevalidfromthedateoftheaboveagreementtoFebruary4,2019.AsofDecember31,2018,theCompany’sguaranteebalanceforthesubsidiarywasRMB5,354,631.23.⑥OnJune27,2018,theCompanysignedIssuingGuarantee/SLCAgreementwithShenzhenOverseasChineseTownBranchofAgriculturalBankofChinatoprovidetheguaranteeforKonkaFactoringtoapplyforthefinancingloanfromAgriculturalBankofChina(DubaiBranch),andtheamountguaranteedisRMB140,000,000.00withone-yearguaranteeperiod.AsofDecember31,2018,KonkaFactoringobtainedaloanofRMB135,800,000.00fromAgriculturalBankofChina(DubaiBranch).⑦TheCompanysignedComprehensiveCreditLineContract(No.HXSFZLZZD20180921001)andappliedtoShenzhenBranchofGuangdong
HuaxingBankforcomprehensivecreditlineofRMB1,000,000,000.00.TheguaranteeperiodisfromSeptember21,2018toAugust29,2019.TheCompanyhassub-licensedthecomprehensivecreditlineRMB200,000,000.00thesubsidiaryKonkaFactoring(Shenzhen),andwillassumethejointliabilityforguarantee.AsofDecember31,2018,KonkaFactoringusedRMB100,000,000.00.⑧TheCompanysignedIssuingGuarantee/SLCAgreement(No.81050120180000032)withShenzhenOverseasChineseTownBranchofAgriculturalBankofChinaandappliedforissuingtheletterofguaranteeofUSD30,000,000.00onMay31,2018forHongKongKonkaCo.,Ltd.toobtainthefinancingloanfromthebank.TheguaranteeperiodisfromMay31,2018toMay30,2019.AsofDecember31,2018,HongKongKonkaCo.,Ltd.obtainedtheloanofUSD30,000,000.00fromBankofChina(HongKong)Co.,Ltd.⑨OnJuly25,2018,theCompanysignedtheguaranteecontractwithShenzhenShennanBranchofChinaMinshengBanktoprovidethejointandseveralliabilityguaranteeforthedebtsundertheforeigncurrencyloancontractsignedbyHongKongKonkaCo.,Ltd.andShenzhenBranchofChinaMinshengBank.Theguaranteeperiodistwoyearsfromthedateofexpirationofthedebtperiod,andtheamountguaranteedisUSD3,500,000.00.⑩OnJuly11,2018,theCompanyappliedtoShenzhenBranchofHSBCBank(China)Co.,Ltd.foraletterofguaranteeofUSD15,000,000.00,helpingthesubsidiaryHongKongKonkaCo.,Ltd.toobtainthefinancingloanfromthebank.TheguaranteeperiodisfromAugust7,2018toAugust6,2019.AsofDecember31,2018,HongKongKonkaobtainedaloanofUSD15,000,000fromHSBCLimited.?TheCompanysignedtheguaranteecontract(No.CZYEDBZ0062018)withChuzhouBranchofBankofChina,providingthejointandseveralliabilityguaranteeforthedebtsunderthecreditlineagreement(No.CZYEDZ0062018)signedbyAnhuiKonkaandChuzhouBranchofBankofChina.TheguaranteeamountisRMB200,000,000.00,andtheguaranteeperiodistwoyearsfromtheexpirationofthedebtsettlementperiodunderthecreditlineagreement.ThebalanceoftheguaranteeamountprovidedbytheCompanytoAnhuiKonkaisRMB200,000,000.00.AnhuiKonka’anothershareholder,ChuzhouState-ownedAssetsOperationCo.,Ltd.providedthecounter-guaranteetotheCompanyfor22%oftheguaranteeamount.?OnJune1,2018,theCompanysignedthemaximumamountguaranteecontract(No.CZZHZGBZD01332018)withChengzhongBranchof
ChuzhouWandongRuralCommercialBank,providingthejointandseveralliabilityguaranteeforthedebtsunderthecomprehensivecreditlineagreementsignedbyAnhuiKonkaandChengzhongBranchofChuzhouWandongRuralCommercialBank.TheguaranteeamountisRMB80,000,000.00,andtheguaranteeperiodistwoyearsfromtheexpirationofthedebtsettlementperiodunderthecreditlineagreement.ThebalanceoftheguaranteeamountprovidedbytheCompanytoAnhuiKonkaisRMB80,000,000.00.AnhuiKonka’anothershareholder,ChuzhouState-ownedAssetsOperationCo.,Ltd.providedthecounter-guaranteetotheCompanyfor22%oftheguaranteeamount.?TheCompanysignedthemaximumamountguaranteecontract(No.GGBZDDB1800000101834)withMa’anshanBranchofChinaMinshengBank,providingthejointandseveralliabilityguaranteeforthedebtsunderthecomprehensivecreditlineagreementsignedbyAnhuiKonkaandMa’anshanBranchofChinaMinshengBank.TheguaranteeamountisRMB100,000,000.00,andtheguaranteeperiodistwoyearsfromtheexpirationofthedebtsettlementperiodunderthemaincontract.AsofDecember31,2018,thebalanceoftheguaranteeamountprovidedbytheCompanytoAnhuiKonkaisRMB100,000,000.00.AnhuiKonka’anothershareholder,ChuzhouState-ownedAssetsOperationCo.,Ltd.providedthecounter-guaranteetotheCompanyfor22%oftheguaranteeamount.?OnMay28,2018,theCompany’ssubsidiaryTelecommunicationTechnologysignedtheguaranteecontract(No.(23301)YSHBZ(180525)00001)withLingangBranchofYibinCommercialBank,providingthejointandseveralliabilityguaranteeforthedebtsundertheentrustedloancontractjointlysignedbyitssubsidiaryKonkaIntelligentTerminal,GloportGroupandLingangBranchofYibinCommercialBank.TheguaranteeamountisRMB140,000,000.00,andtheguaranteeperiodisfromMay28,2018toMay24,2025.TheguaranteedcreditlineismainlyusedforobtainingtheloanfromthebankfortheproductionandoperationofKonkaIntelligentTerminal.AsofDecember31,2018,theguaranteeamountRMB50,000,000.00wasused.KonkaIntelligentTerminal’anothershareholder,ShenzhenKangweiInvestmentPartnership(LimitedPartnership)providedthecounter-guaranteetoTelecommunicationTechnologyfor49%oftheguaranteeamount.?OnNovember21,2018,theCompanysignedtheguaranteecontract(No.1510201811120052BZ-1)withZhuhaiBranchofXiamenInternationalBank,providingthejointandseveralliabilityguaranteeforthedebtsunderthecomprehensivecreditlinecontractsignedbythesubsidiaryXingyeHongdaandZhuhaiBranchofXiamenInternationalBank.TheguaranteeamountisRMB58,000,000.00,andtheguarantee
periodistwoyearsfromtheexpirationofthedebtsettlementperiodstipulatedinthecontract.AsofDecember31,2018,XingyeHongdausedtheguaranteeamountRMB58,000,000.00.XingyeHongda’anothershareholder,HuZehongprovidedthecounter-guaranteetotheCompanyfor49%oftheguaranteeamount.?OnOctober16,2018,theCompany’ssubsidiaryElectronicsTechnologysignedtheguaranteecontract(No.IFELC18D29PS7Y-U-03)withFarEasternLeasing,providingtheguaranteeforthefulfillmentofrentpaymentandotherobligationsundertheafter-salesleasebackcontractsignedbythesubsidiaryXingyeHongdaandFarEasternLeasing.TheguaranteeamountisRMB10,000,000.00,andtheguaranteeperiodisfromNovember13,2018toNovember13,2020.AsofDecember31,2018,theguaranteeamountRMB9,500,000.00wasused.XingyeHongda’anothershareholder,HuZehongprovidedthecounter-guaranteetotheCompanyfor49%oftheguaranteeamount.?OnAugust29,2018,theCompanysignedIssuingGuarantee/SLCAgreementwithShenzhenBranchofBankofChinaforissuingtheletterofguaranteetoCTCEGroupandprovidingthepledgeguaranteeforthecapitalcontributionobligationofEconTechnologyinthecentralurbanupgradingprojectofWeifangBinhaiEconomicandTechnologicalDevelopmentZone.TheguaranteeamountisRMB31,350,000.00.OthershareholdersofEconTechnologyincludingYantaiBaijiangyuanEnterpriseManagementCenter(LimitedPartnership),YantaiFengqingtaiInvestmentCenter(LimitedPartnership),YantaiQingrunyuanEnterpriseManagementCenter(LimitedPartnership)andYantaiQingjiangchuanEnterpriseManagementCenter(LimitedPartnership)respectivelyprovidedthecounter-guaranteetotheCompanyfor26.04%,11.58%,10.64%and0.74%ofthemaximumdebtamount.?OnDecember4,2018,theCompanysignedthemaximumamountguaranteecontract(No.XYGXGBZD20180208)withNanchangBranchofChina’sIndustrialBank,providingthecreditguaranteeforthemaximumamountRMB100,000,000.00ofJiangxiKonkaNewMaterialTechnologyCo.,Ltd.Theguaranteeperiodistwoyearsfromtheexpirationofthedebtsettlementperiodstipulatedinthemaincontract,andtheguaranteemodeisthejointliabilityguaranty.AsofDecember31,2018,theguaranteeamountRMB100,000,000.00wasused.AnothershareholderofJiangxiKonkaNewMaterialTechnologyCo.,Ltd.,ZhuXinmingprovidedthecounter-guaranteetotheCompanyfor49%oftheguaranteeamount.?OnDecember27,2016,theCompany’ssubsidiaryEconGroupsignedtheguaranteecontract(No.YKB2016-167)withYantaiBranchof
ChinaEverbrightBank,providingtheguaranteeforRushanYike.TheguaranteeamountisRMB29,000.00,andtheguaranteeperiodisfromDecember29,2016toDecember28,2026.AsofDecember31,2018,theguaranteeamountRMB15,000.00wasused.?OnDecember19,2016,thecompany’ssubsidiaryJiangxiKoncoNewMaterialTechnologyCo.,Ltd.(previouslyknownasJiujiangGoldenPhoenixDecorativeMaterialCo.,Ltd.)signedtheentrustedloanguaranteecontract(No.NNYWBZDB106112016121900042016)withNanchangRuralCommercialBanktoprovidetheguaranteeforRMB10,000.00forJiangxiXinxinJian’anEngineeringCo.,Ltd.,andtheguaranteeperiodistwoyearsfromtheexpirationofthedebtsettlementperiodstipulatedinthecontract.○21OnDecember19,2016,thecompany’ssubsidiaryJiangxiKoncoNewMaterialTechnologyCo.,Ltd.(previouslyknownasJiujiangGoldenPhoenixDecorativeMaterialCo.,Ltd.)signedtheentrustedloanguaranteecontract(No.NNYWBZDB106112016121900032016)withNanchangRuralCommercialBanktoprovidetheguaranteeforRMB10,000.00forJiangxiZhongyiDecorativeMaterialCo.,Ltd.,andtheguaranteeperiodistwoyearsfromtheexpirationofthedebtsettlementperiodstipulatedinthecontract.○22OnDecember16,2016,thecompany’ssubsidiaryJiangxiKoncoNewMaterialTechnologyCo.,Ltd.(previouslyknownasJiujiangGoldenPhoenixDecorativeMaterialCo.,Ltd.)signedtheentrustedloanguaranteecontract(No.NNYWBZDB106112016121900022016)withNanchangRuralCommercialBanktoprovidetheguaranteeforRMB10,000.00forJiangxiShanshiScienceandTechnologyCo.,Ltd.,andtheguaranteeperiodistwoyearsfromtheexpirationofthedebtsettlementperiodstipulatedinthecontract.XIII.EventsafterBalanceSheetDate1.SignificantNon-adjustedEvents
| Item | Content | Influencenumbertothefinancialpositionandoperatingresults | Reasonofinabilitytoestimateinfluencenumber |
| Issuanceofstocksandbonds | CompletetheprivateplacementofcorporatebondsofRMB2.5billionon15 | IncreaseinbondspayableofRMB2.5billion | N/A |
| Item | Content | Influencenumbertothefinancialpositionandoperatingresults | Reasonofinabilitytoestimateinfluencenumber |
| January2019 | |||
| Significantsharetransfer | Transfer17%sharesofNanjingKangxingTechnologyIndustrialParkOperationandManagementCo.,Ltd.heldbyElectronicsTechnologybylisting | InvestmentincomeconfirmedofRMB0.197billion | N/A |
| Significantexternalinvestments | Aftertheabove-mentionedtransferofshares,theCompanywillprovidefinancialaidnotmorethanRMB1.088billionatannualinterestrateof8%withtermnotlongerthan3yearsforNanjingKangxingTechnologyIndustrialParkOperationandManagementCo.,Ltd.withothershareholdersthroughtheCompany’swholly-ownedsubsidiaryKonkaInvestmentbyshareholdingratio | IncreaseintheCompany’sexternalcreditsat34% | N/A |
2.ProfitDistributionThe7
th
Meetingofthe9
th
BoardofDirectorswasheldbytheCompanyon28March2019,onwhichtheProfitDistributionPlanin2018thatdistributedRMB240,794,540.80ofcashdividendwasapproved.Theprofitdistributionplanshouldbesubmittedtothe2018AnnualGeneralMeetingforreviewandapproval.3.InfluenceofImplementationofNewAccountingStandardssince1January2019TheMinistryofFinanceissuedthefollowingstandardson31March2017:AccountingStandardsforBusinessEnterprisesNo.22-RecognizationandMeasurementofFinancialInstruments(revisedin2017)(CK[2017]No.7),AccountingStandardsforBusinessEnterprisesNo.23-TransferofFinancialAssets(revisedin2017)(CK[2017]No.8),AccountingStandardsforBusinessEnterprisesNo.24-HedgeAccounting(revisedin
2017)(CK[2017]No.9),andissuedtheAccountingStandardsforBusinessEnterprisesNo.37-PresentationofFinancialInstruments(revisedin2017)(CK[2017]No.14)on2May2017(theabovestandardswerereferredtoas“newfinancialinstrumentstandards”collectivelyhereafter)andrequiredalldomesticallylistedcompaniestoimplementsince1January2019.Approvedbythe7
th
Meetingofthe9
th
BoardofDirectors,theCompanywillcarryouttheaforesaidnewfinancialinstrumentstandardssince1January2019andmadechangesinrelevantaccountingpoliciespursuanttoabovenewfinancialinstrumentstandards.Accountingpolicychangesmainlyinvolvethefollowing:
UndernewFinancialInstrumentsStandards,allrecognizedfinancialassetsaresubsequentlymeasuredatamortizedcostorfairvalue.Onthedateofimplementationofnewfinancialinstrumentstandards,thebusinessmodelofmanagingfinancialassetsisevaluatedonthebasisoftheexistingfactsandcircumstancesoftheCompanyonthesamedate,thecharacteristicsofcontractualcashflowonfinancialassetsareevaluatedonthebasisoffactsandcircumstancesatthetimeofinitialrecognitionofthefinancialassets,andfinancialassetsareclassifiedintothreecategories:measuredatamortizedcost,measuredatfairvaluewithchangesincludedinothercomprehensiveincome,measuredatfairvaluewithchangesincludedinprofitsandlosses.Forequityinstrumentinvestmentsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincome,whentherecognitionofthefinancialassetisterminated,theaccumulatedgainsorlossespreviouslyincludedinothercomprehensiveincomewillbetransferredfromothercomprehensiveincometoretainedincome,andnotincludedinthecurrentprofitsandlosses.Undernewfinancialinstrumentstandards,theCompanymakesprovisionsforimpairmentandrecognitionofcreditimpairmentlosses,basedontheexpectedcreditloss,forfinancialassetsmeasuredatamortizedcost,investmentindebtinstrumentsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincome,leasereceivables,contractualassetsandfinancialguaranteecontracts.XVI.OtherSignificantEvents1.OnJanuary3,2019,theCompanysignedMaximumAmountGuaranteeContractwithShenzhenBranchofNingboBank.Accordingtothecontract,theCompanyprovidesthejointliabilityguaranteeforthecreditor’srightsarisingunderthecreditcontractsignedbyShenzhenBranch
ofNingboBankandthecompany’sholdingsubsidiaryE-DISPLAY.TheguaranteeamountisRMB20million,andtheguaranteeperiodistwoyearsfromtheexpirationofthedebtperformanceperiodagreedinthecreditcontract.2.OnJanuary14,2019,theCompanyrespectivelysignedMaximumAmountGuaranteeContractwithChuzhouBranchofChina’sIndustrialBankandShenzhenBranchofChinaMinshengBank.Accordingtothecontract,theCompanyrespectivelyprovidesthejointliabilityguaranteeforthecreditor’srightsarisingunderthecreditcontractsignedbyChuzhouBranchofChina’sIndustrialBankandShenzhenBranchofChinaMinshengBankandthecompany’swholly-ownedsubsidiaryAnhuiTongchuang.TheguaranteeamountsarerespectivelyRMB100millionandRMB30million,andtheguaranteeperiodistwoyearsfromtheexpirationofthedebtperformanceperiodagreedinthecreditcontract.3.OnJanuary17,2019,theCompanysignedMaximumAmountGuaranteeContractwithNanchangHonggutanBranchofBankofBeijing.Accordingtothecontract,theCompanyprovidesthejointliabilityguaranteeforthecreditor’srightsarisingunderthecomprehensivecreditlinecontractsignedbyNanchangHonggutanBranchofBankofBeijingandthecompany’sholdingsubsidiaryJiangxiKonka.TheguaranteeamountisRMB100million,andtheguaranteeperiodistwoyearsfromtheexpirationofthedebtperformanceperiodagreedinthecreditcontract.4.OnJanuary24,2019,theCompanysignedMaximumAmountGuaranteeContractwithHuangshanRoadBranchofHefeiScience&TechnologyCommercialBank.Accordingtothecontract,theCompanyprovidesthejointliabilityguaranteeforthecreditor’srightsarisingunderthecomprehensivecreditlinecontractsignedbyAnhuiKonkaandHuangshanRoadBranchofHefeiScience&TechnologyCommercialBank.TheguaranteeamountisRMB50million,andtheguaranteeperiodistwoyearsfromtheexpirationofthedebtperformanceperiodagreedinthemaincontract.5.OnFebruary21,2019,theCompanysignedGuaranteeContractwithMa’anshanBranchofChinaMinshengBank.Accordingtothecontract,theCompanyprovidesthejointliabilityguaranteeforthecreditor’srightsarisingunderMergerLoanContractsignedbyAnhuiElectricAppliancesandMa’anshanBranchofChinaMinshengBank.TheguaranteeamountisRMB130million,andtheguaranteeperiodistwoyearsfromtheexpirationofthedebtperformanceperiodagreedinthemaincontract.6.OnMarch13,2019,theCompanysignedGuaranteeContractwithHaitongUnitrustInternationalLeasingCo.,Ltd.Accordingtothecontract,
theCompanyprovidesthejointliabilityguaranteeforthedebtsarisingunderFinancingLease-backContractandallattachmentssignedbyHaitongUnitrustandthecompany’sholdingsubsidiaryJiangxiKonka.TheguaranteeamountisRMB119million,andtheguaranteeperiodistwoyearsfromtheexpirationofthedebtperformanceperiodagreedinthemaincontract.7.Loanbymandate:
(1)TheCompany,togetherwithShenzhenOverseasChineseTownCo.,Ltd.andChinaCITICBankCo.,Ltd.ShenzhenBranch,hasconcludedtheSub-agreementforElectronicLoanbyMandateonCashManagementbyCITICBank,numbered811038022341.TheamountofloanbymandateundertheAgreementisRMB2,000,000,000.00,withatermfromthedateofentryintoforceoftheAgreementtoApril12,2023.Theannualinterestrateoftheloanis4%to10%,subjecttotheconfirmationoftheborrowerandtheprincipalintheelectronicloanbymandateoncashmanagement.Subsequently,thethreepartiessignedaSupplementaryAgreementtotheSub-agreementforElectronicLoanbyMandateonCashManagementbyCITICBank,numbered811038022341-1,inwhichtheamountofloanbymandatewaschangedtoRMB3,000,000,000.00.AsofDecember31,2018,ShenzhenOverseasChineseTownCo.,Ltd.actuallyprovidedtheCompanywithaloanbalancebymandateofRMB3,000,000,000.00throughChinaCITICBankShenzhenBranch.(2)OnSeptember14,2017,theCompanyandOCTGroupCo.,Ltd.andShenzhenOCTBranchofChinaConstructionBankjointlysignedEntrustedLoanContract(No.JSWD2017141).ThetotalentrustedloanamountisRMB5,000,000,000.00,andtheloantermisfromSeptember14,2017toDecember31,2018.Later,thethreepartiessignedtheentrustedloanextensioncontractonDecember14,2018andDecember19,2018,andthetotalamountsubjecttosuchextensionisRMB1,276,560,000.00.AsofDecember31,2018,thebalanceoftheentrustedloanprovidedbyOCTGroupCo.,Ltd.totheCompanyviaOCTBranchofChinaConstructionBankwasRMB1,276,560,000.00.8.CreditGranting:
(1)TheCompany,ShenzhenFutianBranchofBankofChinaandShenzhenKonkaTelecommunicationTechnologyCo.,Ltd.jointlysignedthecreditlineagreement(No.ZZYFEXZD10000142018),applyingforacreditlineofRMB5,500,000,000.00forissuingtheacceptancebills,thenon-financingguaranteeandthetradefinancing.TheCompanyprovidedRMB1.3billionbankacceptancebillsforpledge,andagreedto
providetheamountofRMB500,000,000.00inthecomprehensivecreditlinetothesubsidiaryTelecommunicationTechnologyforuse.TheCompanywouldbejointlyandseverallyliableforthecomprehensivecredit.ThecreditlineshallbevalidfromthedateoftheabovecreditlineagreementtoFebruary4,2019.AsofDecember31,2018,atotalofRMB2,943,479,305.08wasusedfromtheabovecreditline,andtheremainingcreditlineisRMB2,556,520,694.92.(2)TheCompanysignedthecreditlineextensioncontractwithShenzhenOCTBranchofIndustrialandCommercialBankofChinatoapplyforthemaximumcreditlineofRMB1.9billionandextendthecreditlineperiodtoSeptember30,2019.AsofDecember31,2018,atotalofRMB1525.7625millionwasusedfromtheabovecreditline,andtheremainingcreditlineisRMB374.2375million.(3)OnJanuary2,2018,theCompanyandShenzhenBranchofPingAnBanksignedthecomprehensivecreditlinecontract(No.PYSZZZDA596201711270001),applyingforthecomprehensivecreditlineofRMB400,000,000.00forloaningworkingcapital,openingthebankacceptancebills,openingtheimportlettersofcredit,openingthedomesticlettersofcredit,theimportandexportdocumentarycredit,theimportandexportpaymentwithholding,thefinancingguarantees,andthediscountingofcommercialbillsandotherbusinessesetc.Thecreditlineperiodisvalidwithin12monthsfromthedaywhenthecreditlinecontractbecomeseffective.AsofDecember31,2018,thebalanceofthecreditlineisRMB400,000,000.00.(4)TheCompanyandShenzhenBranchofChinaMinshengBanksignedthecomprehensivecreditlinecontract(No.GSXZDJT18006),applyingforthemaximumcreditlineofRMB500,000,000.00fortheloanbusinessbasedonRMB,billofexchangeacceptance,billofexchangediscount,guarantee;foreigncurrencyloans,guarantees,lettersofcredit,financingguarantees,andbuyerfactoringguaranteesinrelationtothetradefinancingbusiness.KonkaGroupCo.,Ltd.agreedthatitssubsidiary,AnhuiKonkaTongchuangcouldusethecreditlineunderthecomprehensivecreditcontractandprovidedthemaximumguaranteefortheamountused.It’salsoagreedthattheCompanycoulduseRMB350,000,000.00fromtheabove-mentionedcreditline,ofwhich,thefinancingguaranteewaslimitedtoUSD50million,andtheguaranteedHongKongKonkaCo.,Ltd.foroverseasprocurementofrawmaterials;AnhuiKonkaTongchuangcouldusetheabovecreditlineRMB30million,andtheCompanyprovidedthejointliabilityguarantee.Thetypesofcreditlinearelimitedtothedraftacceptance,thediscountofbill,theredemptionlimitofcommercialbillsandthereplacementofbills.AsofDecember31,2018,atotalofRMB184.2749millionwasusedfrom
theabovecreditline,andtheremainingcreditlineisRMB325.7251million.(5)TheCompanysignedthecomprehensivecreditlinecontractwithShenzhenBranchofBankofCommunications,applyingforthecreditlineofRMB500,000,000.00fortheRMBworkingfundloan,thebankacceptance,theopeningofe-bankacceptancebill,theletterofguarantee,theimportlettersofcredit,andtheimportdocumentarybills,thefinancingofimportoutwardremittance,theopeningofdomesticlettersofcredit,andthebuyer’sdocumentarybillsofdomesticLC.ThecreditlineisvalidfromApril11,2017toApril11,2019.AsofDecember31,2018,atotalofRMB300,000,000.00wasusedfromtheabovecreditline,andtheremainingcreditlineisRMB200,000,000.00.(6)TheCompanysignedthecomprehensivecreditlinecontract(No.SYQHZZD00062018)withShenzhenBranchofChinaCiticBank,applyingforthecomprehensivecreditlineofRMB400,000,000.00.ThecreditlineperiodisfromOctober12,2018toJuly27,2019.AsofDecember31,2018,atotalofRMB400,000,000.00wasusedfromtheabovecreditline.(7)OnNovember15,2018,theCompanysignedthecomprehensivecreditlinecontract(No.ZSYZSZD00009(584600)2018)withShenzhenBranchofChinaZheshangBank,applyingforthemaximumcreditlineofRMB1,000,000,000.00.ThecreditlineperiodisfromNovember15,2018toAugust14,2019.AsofDecember31,2018,atotalofRMB300,000,000.00wasusedfromtheabovecreditline,andtheremainingcreditlineisRMB700,000,000.00.(8)TheCompanysignedtheComprehensiveCreditLineContract(No.HXSFZLZZD20180921001)andappliedtoShenzhenBranchofGuangdongHuaxingBankforthecomprehensivecreditlineofRMB1,000,000,000.00.TheguaranteeperiodisfromSeptember21,2018toAugust29,2019.TheCompanyhassub-licensedthecomprehensivecreditlineRMB200,000,000.00thesubsidiaryKonkaFactoring(Shenzhen).AsofDecember31,2018,atotalofRMB600millionwasusedfromtheabovecreditline,andtheremainingcreditlineisRMB400million.(9)OnMay10,2018,theCompanysignedthecomprehensivecreditlinecontract(No.BSFZ(2018)9)andthesupplementaryagreementwithShenzhenBranchofChinaBohaiBank,applyingforthetotalcreditlineofRMB500,000,000.00.Thecreditlinetermisoneyear,andthecreditlineisusedfortheworkingcapitalloan,thetradebillacceptance,theopeningoftheimportLC,theexportLCdocumentarybills,theimport
documentarybillsandtheopeningofdomesticLC.AsofDecember31,2018,atotalofRMB366,660,000.00wasusedfromtheabovecreditline,andtheremainingcreditlineisRMB133,340,000.00.(10)OnNovember26,2018,theCompanysignedthecreditlineagreement(No.BY(2018)ZFJGBSXZD1126001)withShenzhenNanshanBaoshengVillageBank,applyingforthecreditlineofRMB20,000,000.00,andthecreditlineperiodisfromNovember26,2018toNovember26,2019.Thecreditlineisusedfortheopeningofbankacceptancebills,theworkingcapitalloansandthediscountingofcommercialacceptancebillsetc.AsofDecember31,2018,atotalofRMB20,000,000.00wasusedfromtheabovecreditline.(11)OnNovember28,2018,theCompanysignedthecreditlinecontract(No.XYSHSXZ(2018)D0152)withShenzhenBranchofChinaIndustrialBank,applyingforthemaximumcreditlineofRMB2,000,000,000.00,andthecreditlinecouldbeusedto(butnotlimitedto)theworkingcapitalloan,thebankacceptance,thenon-financingguarantee,andthelettersofcreditetc.ThecreditlineperiodisvalidfromNovember28,2018toNovember28,2019.AsofDecember31,2018,atotalofRMB200,000,000.00wasusedfromtheabovecreditline,andtheremainingcreditlineisRMB1,800,000,000.00.(12)TheCompanyappliedthecreditlineofRMB1,200,000,000.00viaShenzhenOCTBranchofAgriculturalBankofChinawhichcouldbeusedfortheloans,thebillacceptance,thenotesdiscounted,theopeningofLC,thepackingloan,theimportbilladvance,theexportbillpurchaseandtheopeningoflettersofguarantee.ThecreditlineshallbevalidfromFebruary28,2018toFebruary28,2019.AsofDecember31,2018,atotalofRMB1,057,030,000.00wasusedfromtheabovecreditline,andtheremainingcreditlineisRMB142,970,000.00.(13)TheCompanyappliedthecreditlinenomorethanRMB180,000,000.00viaShenzhenBranchofNingboBankwhichcouldbeusedfortheloans,thebillacceptance,thenotesdiscounted,theopeningofLC,thepackingloan,theimportbilladvance,theexportbillpurchaseandtheopeningoflettersofguarantee.ThecreditlineshallbevalidfromNovember29,2018toNovember29,2019.AsofDecember31,2018,atotalofRMB180,000,000.00wasusedfromtheabovecreditline.(14)TheCompanyappliedthecreditlinenomorethanRMB500,000,000.00viaShenzhenBranchofShanghaiPudongDevelopmentBankwhichcouldbeusedfortheloans,thebillacceptance,thenotesdiscounted,theopeningofLC,andthepackingloanetc.Thecreditlineshallbe
validfromJanuary21,2018toJanuary21,2019.AsofDecember31,2018,atotalofRMB500,000,000.00wasusedfromtheabovecreditline.(15)TheCompanyappliedthecreditlinenomorethanRMB100,000,000.00viaShenzhenNantouBranchofHuaXiaBankwhichcouldbeusedfortheloans,thebillacceptance,thenotesdiscounted,andtheopeningofLCetc.ThecreditlineshallbevalidfromJanuary21,2018toJanuary21,2019.AsofDecember31,2018,atotalofRMB100,000,000.00wasusedfromtheabovecreditline.(16)TheCompanyappliedthenon-commitmentcombinedrevolvingcreditlinenomorethanUSD15,000,000.00viaShenzhenNantouBranchofHSBCwhichcouldbeusedforthefinancialguaranteebusiness.AsofDecember31,2018,atotalofUSD15,000,000.00wasusedfromtheabovecreditline.(17)TheCompanyappliedforthecreditlineofRMB2,200,000,000.00viaShenzhenOCTBranchofChinaConstructionBank,ofwhich,RMB940,000,000.00wasusedasthecomprehensivecreditline,RMB200,000,000.00thefinancingcreditline,RMB500,000,000.00thebonds,RMB40,000,000.00theworkingcapitalloan,RMB20,000,000.00thecapitaltransactioncreditlineandRMB500,000,000.00otherbusinesses.AsofDecember31,2018,atotalofRMB982.5214millionwasusedfromtheabovecreditline,andtheremainingcreditlineisRMB1217.4786million.9.Trust:
OnAugust17,2017,theCompanyenteredintothe“ProjectIndividualFundTrustContractforKonka-COSCapital”numberedbitc2017(t)-7335withthetrusteeBohaiInternationalTrustCo.,Ltd.inShijiazhuang,instructingthetrusteetoinvestthetrustfundsinthelimitedpartnershipshareofZhuhaiOrientalLongchenCapitalManagementCentre(LimitedPartnership)inaccordancewiththeContract.ThepartnershipbusinessinveststhefundsinthesupplychainfinancialproductsapprovedbyclientsanddebtfinancingofupstreamanddownstreamenterprisesoftheCompany,andexecutesthecreditor'srightsinvestmentorequityinvestmentprojectsperceivedbybusinesspartners.Trustfundsaredeliveredinstageswithaperiodofnomorethan9monthsandanetreturnoninvestmentof9%peryear.PartnershipprofitsaredistributedonDecember20oftheGregoriancalendarinthedurationandtheexpirationdateofthetrust.AsofDecember31,2018,theinvestmentamountreachedRMB30million.
10.CCBfinancingtrust:
TheCompanyenteredintotwocooperationagreementononlineplatformcloud-loanproductwithCCBShenzhenBranch,specifically,aquotacontractnumberedL2018P1161OverseasChineseTownandanagreementnumberedC2018P1161OverseasChineseTown.ItisaloantransactiondevelopedwithintheapprovedmaximumcooperationquotaforlegalorindividualbusinessornaturalpersoncustomersrecommendedbytheCompanybyagreement,withjointliabilityguarantyorcompensationcommitmentoftheCompany.ThecooperationquotaapprovedbyCCBShenzhenBranchisRMB200,000,000.00,withvalidityfromAugust9,2018toJune5,2019.Withintheapprovedcooperationquota,theCompanyenjoysaself-usequotaofRMB90,000,000.00,withinwhich,RMB80,000,000.00wasallocatedtoShenzhenKonkaElectronicCo.,Ltd.,asubsidiaryoftheCompany,andRMB30,000,000.00wasallocatedtoShenzhenKonkaE-displayCo.,Ltd.,anothersubsidiaryoftheCompany.AsofDecember31,2018,anamountofRMB44,841,523.41ofthefinancingtrustwasusedbytheCompany,ofwhich,RMB35,297,625.17wasusedbyShenzhenKonkaElectronicCo.,Ltd.andRMB18,494,293.54wasusedbyShenzhenKonkaE-displayCo.,Ltd.11.AccountsreceivableinGuangdongHuaxingBank:
TheCompanyenteredintotheDomesticFactoringBusinessContractwithGuangdongHuaxingBankShenzhenBranch(ContractNo.HXSZF20181130001).AccordingtotheContact,GuangdongHuaxingBankShenzhenBranchprovidestheCompanywithafactoringquotanotexceedingRMB500million,withavalidityfromNovember30,2018toNovember29,2019.AsofDecember31,2018,thefactoringofaccountsreceivableoftheCompanyinthebankamountedtoRMB486,000,000.00.XVII.NotesofMainItemsintheFinancialStatementsoftheCompany1.NotesReceivableandAccountsReceivable
| Item | Endingbalance | Beginningbalance |
| Notesreceivable | 2,181,466,683.90 | 2,864,064,309.99 |
| Accountsreceivable | 7,427,246,429.42 | 4,732,153,992.25 |
| Item | Endingbalance | Beginningbalance |
| Total | 9,608,713,113.32 | 7,596,218,302.24 |
(1)NotesReceivable
①NotesReceivableListedbyCategory
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebill | 2,176,711,080.13 | 2,862,824,536.60 |
| Tradeacceptance | 4,755,603.77 | 1,239,773.39 |
| Total | 2,181,466,683.90 | 2,864,064,309.99 |
②NotesReceivablePledgedbytheCompanyatthePeriod-end
| Item | Amount |
| Bankacceptancebill | 1,308,095,737.06 |
| Tradeacceptance | 1,359,122.95 |
| Total | 1,309,454,860.01 |
③NotesReceivableEndorsedbytheCompanyorDiscountedandnotdueontheBalanceSheetDateatthePeriod-end
| Item | DerecognizedAmountattheperiod-end | Non-derecognizedamountattheperiod-end |
| Bankacceptancebill | 330,783,688.83 | - |
| Tradeacceptance | - | - |
| Total | 330,783,688.83 | - |
④NotesTransferredtoAccountsReceivablebecauseDraweroftheNotesFailedtoExecutetheContractorAgreement
| Item | Amountofthenotestransferredtoaccountsreceivableattheperiod-end |
| Bankacceptancebill | 3,135,022.00 |
| Tradeacceptance | 952,561,680.41 |
| Total | 955,696,702.41 |
(2)AccountsReceivable
①AccountsReceivableClassifiedbyCategory
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Accountsreceivablewithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 740,027,889.84 | 9.64 | 51,502,510.09 | 6.96 | 688,525,379.75 |
| Accountsreceivablewithdrawalofbaddebtprovisionofbycreditriskscharacteristics: | |||||
| Group1:aginggroup | 1,029,783,688.54 | 13.42 | 177,758,725.88 | 17.26 | 852,024,962.66 |
| Group2:relatedpartygroup | 5,876,525,075.32 | 76.58 | --- | --- | 5,876,525,075.32 |
| Subtotalofgroups | 6,906,308,763.86 | 90.00 | 177,758,725.88 | 2.57 | 6,728,550,037.98 |
| Accountsreceivablewithinsignificant | 27,458,788.03 | 0.36 | 17,287,776.34 | 62.96 | 10,171,011.69 |
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| singleamountforwhichbaddebtprovisionseparatelyaccrued | |||||
| Total | 7,673,795,441.73 | 100.00 | 246,549,012.31 | 3.21 | 7,427,246,429.42 |
(Continued)
| Category | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Accountsreceivablewithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | --- | --- | --- | --- | --- |
| Accountsreceivablewithdrawalofbaddebtprovisionofbycreditriskscharacteristics: | --- | --- | --- | --- | --- |
| Group1:aginggroup | 2,082,823,910.69 | 42.10 | 197,902,700.06 | 9.50 | 1,884,921,210.63 |
| Group2:relatedpartygroup | 2,827,688,037.26 | 57.16 | --- | --- | 2,827,688,037.26 |
| Subtotalofgroups | 4,910,511,947.95 | 99.26 | 197,902,700.06 | 4.03 | 4,712,609,247.89 |
| Category | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Accountsreceivablewithinsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 36,839,946.40 | 0.74 | 17,295,202.04 | 46.95 | 19,544,744.36 |
| Total | 4,947,351,894.35 | 100.00 | 215,197,902.10 | 4.35 | 4,732,153,992.25 |
A.Accountsreceivablewithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccruedattheperiod-end
| Accountsreceivable(byunit) | Endingbalance | |||
| Accountsreceivable | Baddebtprovision | Withdrawalproportion(%) | Withdrawalreason | |
| CEFC(Shanghai)GroupCo.,Ltd. | 300,027,889.84 | 27,002,510.09 | 9.00 | Expectedtobedifficulttorecoverinfull |
| JiangsuHongtuSanbaoHigh-TechTechnologyCo.,Ltd. | 200,000,000.00 | 10,000,000.00 | 5.00 | Expectedtobedifficulttorecoverinfull |
| JizhongEnergyInternationalLogisticsGroupCo.,Ltd. | 100,000,000.00 | 5,000,000.00 | 5.00 | Expectedtobedifficulttorecoverinfull |
| ChinaNuclearEngineeringConstructionGroupCo.,Ltd. | 90,000,000.00 | 4,500,000.00 | 5.00 | Expectedtobedifficulttorecoverinfull |
| ChinaEnergyPowerFuelCo.,Ltd. | 50,000,000.00 | 5,000,000.00 | 10.00 | Expectedtobedifficulttorecoverinfull |
| Total | 740,027,889.84 | 51,502,510.09 | — | --- |
B.Top5Accountsreceivablewithinsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued
| Accountsreceivable(byunit) | Endingbalance | |||
| Accountsreceivable | Baddebtprovision | Withdrawalproportion(%) | Withdrawalreason | |
| HenanRadioandTelevisionNetworkCo.,Ltd. | 4,580,000.00 | 1,374,000.00 | 30.00 | Expectedtobedifficulttorecoverinfull |
| AdministrationofRadio,FilmandTelevisioninXinjiangUygurAutonomousRegion | 1,708,054.00 | 546,577.28 | 32.00 | Expectedtobedifficulttorecoverinfull |
| BeijingCPLotusStore | 1,656,628.91 | 1,656,628.91 | 100.00 | Expectedtobedifficulttorecoverinfull |
| QinhuangdaoBaihaiElectricApplianceCo.,Ltd. | 1,430,290.00 | 430,290.00 | 30.08 | Expectedtobedifficulttorecoverinfull |
| YunnanRadioandTelevisionNetworkGroupCo.,Ltd. | 1,317,242.76 | 461,034.97 | 35.00 | Expectedtobedifficulttorecoverinfull |
| Total | 10,692,215.67 | 4,468,531.16 | --- | --- |
C.Amongthesegroups,accountsreceivableadoptingaginganalysismethodtowithdrawbaddebtprovision
| Aging | Endingbalance | ||
| Accountsreceivable | Baddebtprovision | Withdrawalproportion(%) | |
| Aging | Endingbalance | ||
| Accountsreceivable | Baddebtprovision | Withdrawalproportion(%) | |
| Within1year | 832,664,457.75 | 16,653,289.15 | 2.00 |
| 1to2years | 37,336,460.30 | 1,866,823.02 | 5.00 |
| 2to3years | 416,541.03 | 83,308.21 | 20.00 |
| 3to4years | 263,411.99 | 131,706.00 | 50.00 |
| 4to5years | 158,435.94 | 79,217.97 | 50.00 |
| Over5years | 158,944,381.53 | 158,944,381.53 | 100.00 |
| Total | 1,029,783,688.54 | 177,758,725.88 | |
D.Amongthesegroups,accountsreceivableadoptingbalancepercentagemethodtowithdrawbaddebtprovision
| Groupname | Endingbalance | ||
| Accountsreceivable | Baddebtprovision | Withdrawalproportion(%) | |
| RelatedpartygroupintheCompany’scombinationscope | 5,876,525,075.32 | --- | --- |
| Total | 5,876,525,075.32 | --- | --- |
②BadDebtProvisionWithdrawal,ReversedorRecoveredintheReportingPeriodThewithdrawalamountofthebaddebtprovisionduringtheReportingPeriodwasof31,674,284.72.③Top5oftheEndingBalanceoftheAccountsReceivableCollectedaccordingtoArrearsPartyTotalamountofTop5ofendingbalanceoftheaccountsreceivablecollectedaccordingtoarrearspartywasRMB6,372,877,322.39accountingfor83.05%oftotalendingbalanceofaccountsreceivable.TotalendingbalanceofbaddebtprovisionwithdrawnwasRMB37,002,510.09.
2.OtherReceivables
| Item | Endingbalance | Beginningbalance |
| Interestreceivable | 5,769,663.24 | 23,894,771.88 |
| Dividendsreceivable | - | 2,690,276.72 |
| Otherreceivables | 6,661,693,463.33 | 4,314,882,334.26 |
| Total | 6,667,463,126.57 | 4,341,467,382.86 |
(1)InterestReceivable
| Item | Endingbalance | Beginningbalance |
| Fixtimedeposit | 3,435,261.69 | - |
| Entrustedloans | 2,328,939.05 | 22,409,519.80 |
| Wealthmanagementincome | 5,462.50 | 1,485,252.08 |
| Total | 5,769,663.24 | 23,894,771.88 |
(2)DividendsReceivable
| Item(orinvestees) | Endingbalance | Beginningbalance |
| KaikaiShijie | - | 2,690,276.72 |
| Total | - | 2,690,276.72 |
(3)OtherReceivables
①OtherReceivablesDisclosedbyCategory
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Otherreceivableswithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 173,061,959.33 | 2.53 | 162,446,649.23 | 93.87 | 10,615,310.10 |
| Otherreceivableswithdrawnbaddebtprovisionaccordingtocreditriskscharacteristics | |||||
| Group1:aginggroup | 153,289,974.82 | 2.24 | 25,171,956.87 | 16.42 | 128,118,017.95 |
| Group2:relatedpartygroup | 6,522,463,391.24 | 95.22 | - | - | 6,522,463,391.24 |
| Subtotalofgroups | 6,675,753,366.06 | 97.46 | 25,171,956.87 | 0.38 | 6,650,581,409.19 |
| Otherreceivableswithinsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 703,518.00 | 0.01 | 206,773.96 | 29.39 | 496,744.04 |
| Total | 6,849,518,843.39 | 100.00 | 187,825,380.06 | 2.74 | 6,661,693,463.33 |
(Continued)
| Category | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Otherreceivableswithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 173,061,959.33 | 3.84 | 162,467,164.97 | 93.88 | 10,594,794.36 |
| Category | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Otherreceivableswithdrawnbaddebtprovisionaccordingtocreditriskscharacteristics | |||||
| Group1:aginggroup | 121,170,320.79 | 2.69 | 24,301,146.90 | 20.06 | 96,869,173.89 |
| Group2:relatedpartygroup | 4,205,636,078.64 | 93.41 | - | - | 4,205,636,078.64 |
| Subtotalofgroups | 4,326,806,399.43 | 96.10 | 24,301,146.90 | 0.56 | 4,302,505,252.53 |
| Otherreceivableswithinsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 2,516,181.05 | 0.06 | 733,893.68 | 29.17 | 1,782,287.37 |
| Total | 4,502,384,539.81 | 100.00 | 187,502,205.55 | 4.16 | 4,314,882,334.26 |
Otherreceivableswithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccruedattheendoftheperiod
| Otherreceivables(unit) | Endingbalance | |||
| Otherreceivables | Baddebtprovision | Withdrawalproportion(%) | Withdrawalreason | |
| Energysavingsubsidy | 141,549,150.00 | 141,549,150.00 | 100.00 | Irrecoverable |
| ShenzhenKonkaVideo&CommunicationSystemsEngineeringCo.,Ltd. | 18,115,952.51 | 7,500,642.41 | 41.40 | Difficulttorecoverinfullamountafterevaluated |
| ChongqingKonkaAutoElectronicCompany | 13,396,856.82 | 13,396,856.82 | 100.00 | Difficulttorecoverduetobankruptcy |
| Otherreceivables(unit) | Endingbalance | |||
| Otherreceivables | Baddebtprovision | Withdrawalproportion(%) | Withdrawalreason | |
| liquidation | ||||
| Total | 173,061,959.33 | 162,446,649.23 | — | — |
Amongthesegroups,otherreceivablesadoptingaginganalysismethodtowithdrawbaddebtprovision:
| Aging | Endingbalance | ||
| Otherreceivables | Baddebtprovision | Withdrawalproportion | |
| Within1year | 86,586,186.05 | 1,731,723.72 | 2.00 |
| 1to2years | 32,418,836.83 | 1,620,941.84 | 5.00 |
| 2to3years | 9,081,802.21 | 1,816,360.44 | 20.00 |
| 3to4years | 6,783,232.88 | 3,391,616.44 | 50.00 |
| 4to5years | 3,617,204.83 | 1,808,602.41 | 50.00 |
| Over5years | 14,802,712.02 | 14,802,712.02 | 100.00 |
| Total | 153,289,974.82 | 25,171,956.87 | |
②BadDebtProvisionWithdrawal,ReversedorRecoveredintheReportingPeriodThewithdrawalamountofthebaddebtprovisionduringtheReportingPeriodwasofRMB323,174.51;theamountofthereversedorcollectedpartduringtheReportingPeriodwasofRMB0.00;therewasnootherreceivablesactuallyverifiedintheReportingPeriod.③Top5oftheEndingBalanceofOtherReceivablesCollectedaccordingtotheArrearsParty
| Nameoftheentity | Nature | Endingbalance | Aging | Proportiontoendingbalanceoftotalotherreceivables% | Endingbalanceofbaddebtprovision |
| Nameoftheentity | Nature | Endingbalance | Aging | Proportiontoendingbalanceoftotalotherreceivables% | Endingbalanceofbaddebtprovision |
| ElectronicsTechnology | Related-partyborrowings | 1,072,615,555.55 | Within1year | 15.66 | - |
| KonkaInvestment | Related-partyborrowings | 962,025,708.34 | Within1year | 14.05 | - |
| AnhuiTongchuang | Related-partyborrowings | 597,681,244.45 | Within1year | 8.73 | - |
| KangzhiTrade | Related-partyborrowings | 539,227,362.73 | Within1year,1to2years | 7.87 | - |
| KonkaHuanjia | Related-partyborrowings | 510,130,555.56 | Within1year | 7.45 | - |
| Total | — | 3,681,680,426.63 | — | 53.75 | - |
3.Long-termEquityInvestment(1)CategoryofLong-termEquityInvestment
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserve | Carryingvalue | Carryingamount | Depreciationreserve | Carryingvalue | |
| Investmenttosubsidiaries | 4,562,175,372.51 | 46,732,484.69 | 4,515,442,887.82 | 1,592,732,345.01 | 46,732,484.69 | 1,545,999,860.32 |
| Investmenttoassociatedenterprises | 1,672,678,055.95 | 5,158,909.06 | 1,667,519,146.89 | 1,108,233,473.19 | 5,158,909.06 | 1,103,074,564.13 |
| Total | 6,234,853,428.46 | 51,891,393.75 | 6,182,962,034.71 | 2,700,965,818.20 | 51,891,393.75 | 2,649,074,424.45 |
(2)InvestmenttoSubsidiaries
| Investee | Beginningbalance | Increase | Decrease | Endingbalance | Depreciationreservewithdrawn | Endingbalanceofdepreciationreserve |
| Mudangjiangelectricappliances | 36,000,000.00 | - | - | 36,000,000.00 | - | 36,000,000.00 |
| AnhuiKonka | 122,780,937.98 | - | - | 122,780,937.98 | - | - |
| DongguanKonka | 274,783,988.91 | - | - | 274,783,988.91 | - | - |
| HongKongKonka | 781,828.61 | - | - | 781,828.61 | - | - |
| KonkaEurope | 261,482.50 | 3,375,987.50 | - | 3,637,470.00 | - | - |
| Plasthetics | 4,655,000.00 | - | 4,655,000.00 | - | - | - |
| KonkaHouseholdAppliances | 10,732,485.69 | - | - | 10,732,485.69 | - | 10,732,484.69 |
| TelecommunicationTechnology | 90,000,000.00 | 210,000,000.00 | - | 300,000,000.00 | - | - |
| Domesticappliance | 31,500,000.00 | - | - | 31,500,000.00 | - | - |
| FittingsTechnology | 48,750,000.00 | - | - | 48,750,000.00 | - | - |
| KunshanKangsheng | 350,000,000.00 | - | 350,000,000.00 | - | - | - |
| KonkaFactoring | 200,000,000.00 | 100,000,000.00 | - | 300,000,000.00 | - | - |
| Wankaida | 10,000,000.00 | - | - | 10,000,000.00 | - | - |
| AnhuiTongchuang | 249,702,612.22 | 232,000,000.00 | - | 481,702,612.22 | - | - |
| ShushidaLogistics | 10,000,000.00 | - | 10,000,000.00 | - | - | - |
| BeijingKonka | 30,000,000.00 | 170,000,000.00 | - | 200,000,000.00 | - | - |
| KonkaE-display | 7,200,000.00 | - | - | 7,200,000.00 | - | - |
| KaikaiShijie | 16,000,000.00 | - | 16,000,000.00 | - | - | - |
| Investee | Beginningbalance | Increase | Decrease | Endingbalance | Depreciationreservewithdrawn | Endingbalanceofdepreciationreserve |
| CommercialTechnology | 5,832,000.00 | - | - | 5,832,000.00 | - | - |
| MobileInternet | 10,200,000.00 | - | - | 10,200,000.00 | - | - |
| E2info | - | 20,000,000.00 | 677,960.00 | 19,322,040.00 | - | - |
| E3info | 12,000,000.00 | - | - | 12,000,000.00 | - | - |
| DongguanPacking | 8,602,009.10 | - | - | 8,602,009.10 | - | - |
| ChuzhouKonkaTID | 40,000,000.00 | - | - | 40,000,000.00 | - | - |
| KonkaVentures | 2,550,000.00 | - | - | 2,550,000.00 | - | - |
| KonkaPengrun | 5,100,000.00 | 20,400,000.00 | - | 25,500,000.00 | - | - |
| KonkaUnifortune | 15,300,000.00 | - | - | 15,300,000.00 | - | - |
| KonkaInvestment | - | 40,000,000.00 | - | 40,000,000.00 | - | - |
| JiangxiKonka | - | 689,680,000.00 | - | 689,680,000.00 | - | - |
| ElectronicsTechnology | - | 1,000,000,000.00 | - | 1,000,000,000.00 | - | - |
| SichuanKangjiatong | - | 1,020,000.00 | - | 1,020,000.00 | - | - |
| EconTechnology | - | 688,500,000.00 | - | 688,500,000.00 | - | - |
| KonkaHuanjia | - | 91,800,000.00 | - | 91,800,000.00 | - | - |
| ShenzhenNianhua | - | 30,000,000.00 | - | 30,000,000.00 | - | - |
| ShanghaiKonka | - | 40,000,000.00 | - | 40,000,000.00 | - | - |
| Shenzhenkangxinwei | - | 14,000,000.00 | - | 14,000,000.00 | - | - |
| Investee | Beginningbalance | Increase | Decrease | Endingbalance | Depreciationreservewithdrawn | Endingbalanceofdepreciationreserve |
| Total | 1,592,732,345.01 | 3,350,775,987.50 | 381,332,960.00 | 4,562,175,372.51 | - | 46,732,484.69 |
(2)InvestmenttoJointVenturesandAssociatedEnterprises
| Investee | Beginningbalance | Increase/decrease | ||||
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesofotherequity | ||
| ShenzhenKonkaInformationNetworkCo.,Ltd. | 18,960,898.67 | 5,158,909.06 | - | - | 194,455.24 | - |
| ShenzhenYaodeTechnologyCo.,Ltd. | 210,279,132.55 | - | - | - | 11,931,702.63 | - |
| ChutianDragonCo.,Ltd. | 617,214,571.50 | - | - | - | 13,423,191.54 | - |
| KonkaGreen,Konka | 79,729,560.91 | - | - | - | -2,107,745.08 | 788,087.31 |
| Investee | Beginningbalance | Increase/decrease | ||||
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesofotherequity | ||
| Technology | ||||||
| ZhuhaiJinsuPlasticCo.,Ltd. | 9,444,160.97 | - | - | - | 1,596,085.85 | - |
| ShenzhenKonkaIntelligentElectricalApparatusCo.,Ltd. | 4,927,589.47 | - | - | - | -2,640,110.95 | - |
| ShenzhenZhongbingKonkaTechnologyCo.,Ltd. | 14,317,400.80 | - | - | - | -3,699,527.01 | - |
| GuangdongHotcommInformationTechnologyCo.,Ltd. | 1,523,166.24 | - | - | - | -1,523,166.24 | - |
| Investee | Beginningbalance | Increase/decrease | ||||
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesofotherequity | ||
| ZhonggaoKonkaIntelligentTechnology(Beijing)Co.,Ltd. | - | - | - | - | - | - |
| ShenzhenOCTLIFENetworkTechnologyCo.,Ltd. | -22,084.12 | - | 3,771,400.00 | - | -156,801.82 | - |
| KunshanKonka | 151,859,076.20 | - | - | - | -5,012,466.06 | - |
| KunshanKangsheng | - | - | - | - | - | - |
| KaikaiShijie | - | - | - | 2,813,377.36 | 11,738,814.32 | - |
| ShenzhenBosserNew | - | - | 75,000,000.00 | - | 4,859,338.44 | - |
| Investee | Beginningbalance | Increase/decrease | ||||
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesofotherequity | ||
| MaterialsCo.,Ltd. | ||||||
| HelongjiangLongkangZhijiaTechnologyCo.,Ltd. | - | - | 7,000,000.00 | - | -599,519.48 | - |
| ShaanxiSilkRoadCloudSmartTechCo.,Ltd. | - | - | 5,400,000.00 | - | -877,490.67 | - |
| WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | - | - | - | - | 12,822,900.47 | - |
| Total | 1,108,233,473.19 | 5,158,909.06 | 91,171,400.00 | 2,813,377.36 | 39,949,661.18 | 788,087.31 |
(Continued)
| Investee | Increase/decrease | Endingbalance | Endingbalanceofdepreciationreserve | ||
| Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Other | |||
| ShenzhenKonkaInformationNetworkCo.,Ltd. | - | - | - | 19,155,353.91 | 5,158,909.06 |
| ShenzhenYaodeTechnologyCo.,Ltd. | - | - | - | 222,210,835.18 | - |
| ChutianDragonCo.,Ltd. | - | - | - | 624,845,604.93 | - |
| KonkaGreen,KonkaTechnology | - | - | - | 78,409,903.14 | - |
| ZhuhaiJinsuPlasticCo.,Ltd. | - | - | - | 11,040,246.82 | - |
| ShenzhenKonkaIntelligentElectricalApparatusCo.,Ltd. | - | - | - | 2,287,478.52 | - |
| ShenzhenZhongbingKonkaTechnologyCo.,Ltd. | - | - | - | 10,617,873.79 | - |
| GuangdongHotcommInformationTechnologyCo.,Ltd. | - | - | - | - | - |
| ZhonggaoKonkaIntelligentTechnology(Beijing)Co.,Ltd. | - | - | - | - | - |
| ShenzhenOCTLIFENetworkTechnologyCo.,Ltd. | - | - | - | 3,592,514.06 | - |
| KunshanKonka | - | - | - | 146,846,610.14 | - |
| KunshanKangsheng | - | - | 175,254,554.65 | 175,254,554.65 | - |
| KaikaiShijie | - | - | 26,439,060.09 | 35,364,497.05 | - |
| ShenzhenBosserNewMaterialsCo.,Ltd. | - | - | - | 79,859,338.44 | - |
| Investee | Increase/decrease | Endingbalance | Endingbalanceofdepreciationreserve | ||
| Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Other | |||
| HelongjiangLongkangZhijiaTechnologyCo.,Ltd. | - | - | - | 6,400,480.52 | - |
| ShaanxiSilkRoadCloudSmartTechCo.,Ltd. | - | - | - | 4,522,509.33 | - |
| WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | - | - | 239,447,355.00 | 252,270,255.47 | - |
| Total | - | - | 441,140,969.74 | 1,672,678,055.95 | 5,158,909.06 |
4.OperatingRevenueandCostofSales(1)OperatingRevenueandCostofSales
| Item | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Mainoperations | 10,132,713,516.14 | 9,524,363,828.80 | 10,023,055,904.38 | 8,361,637,131.46 |
| Otheroperations | 3,244,968,370.31 | 3,047,765,335.52 | 2,079,422,147.13 | 1,892,456,474.58 |
| Total | 13,377,681,886.45 | 12,572,129,164.32 | 12,102,478,051.51 | 10,254,093,606.04 |
(2)MainOperations(ClassifiedbyIndustry)
| Industry | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Electronicindustry | 10,132,713,516.14 | 9,524,363,828.80 | 10,023,055,904.38 | 8,361,637,131.46 |
| Total | 10,132,713,516.14 | 9,524,363,828.80 | 10,023,055,904.38 | 8,361,637,131.46 |
(3)MainOperations(ClassifiedbyProduct)
| Product | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| ColorTVbusiness | 9,972,096,889.35 | 9,375,225,354.05 | 9,630,486,646.20 | 8,000,876,316.98 |
| Consumerappliancesbusiness | 159,656,497.00 | 148,343,199.68 | 257,783,425.06 | 227,475,631.58 |
| Other | 960,129.79 | 795,275.07 | 134,785,833.12 | 133,285,182.90 |
| Total | 10,132,713,516.14 | 9,524,363,828.80 | 10,023,055,904.38 | 8,361,637,131.46 |
(4)MainOperations(ClassifiedbyArea)
| Area | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Domesticsales | 8,273,508,840.42 | 7,739,284,541.71 | 8,939,568,192.59 | 7,308,147,553.78 |
| Overseassales | 1,859,204,675.72 | 1,785,079,287.09 | 1,083,487,711.79 | 1,053,489,577.68 |
| Total | 10,132,713,516.14 | 9,524,363,828.80 | 10,023,055,904.38 | 8,361,637,131.46 |
(5)OperatingRevenuefromtheTop5Customers
| Period | Totaloperatingrevenuefromthetop5customers | ProportiontotheoperatingrevenueoftheReportingPeriod |
| 2018 | 2,144,554,134.92 | 16.03 |
| 2017 | 3,106,309,264.79 | 25.67 |
5.InvestmentIncome
| Item | ReportingPeriod | Sameperiodoflastyear |
| Long-termequityinvestmentincomeaccountedbycostmethod | 711,492,879.96 | 35,923,429.08 |
| Long-termequityinvestmentincomeaccountedbyequitymethod | 33,783,935.14 | 5,042,389.64 |
| Investmentincomefromdisposaloflong-termequityinvestment | 342,201,410.67 | 6,325,965,280.00 |
| Investmentincomefromdisposaloffinancialassetsatfairvaluethroughprofitorloss | -45,748,200.91 | -15,756,828.90 |
| Investmentincomefromholdingofheld-to-maturityinvestments | - | - |
| Investmentincomefromdisposalofheld-to-maturityinvestments | - | - |
| Investmentincomefromholdingofavailable-for-salefinancialassets | 17,920,000.00 | 4,310,000.00 |
| Investmentincomefromdisposalofavailable-for-salefinancialassets | - | - |
| Incomefromentrustfinancialproductsandentrustloans | 187,429,014.78 | 70,030,692.89 |
| Financialassetstransferredfromequityinvestmentsaccountedbyequitymethod | - | -5,802,480.51 |
| Total | 1,247,079,039.64 | 6,419,712,482.20 |
Notes:thenumber“+”amongthenon-recurringprofitorlossitemsreferstorevenueandincome,while“-”referredtolossesorexpense.
Therecognitionofthenon-recurringprofitorlossitemswasexecutedaccordingtotheregulationsofNo.1oftheInformationDisclosureExplanatoryNoticeoftheCompaniesPublicOfferingSecurities-Non-recurringProfitorLoss(ZJHAnnouncement[2008]No.43).
| Item | Amount | Reason |
| Softwaretaxrebates | 64,656,609.96 | Governmentgrantsrecognizedinthecurrentperiod,andacquiredintheordinarycourseofbusinessorgrantedatcertainquotasoramountsaccordingtothegovernment’sunifiedstandards |
2.ReturnonEquityandEarningsPerShare
| ProfitasofReportingPeriod | WeightedaverageROE(%) | EPS(Yuan/share) | |
| EPS-basic | EPS-diluted | ||
| Netprofitattributabletoordinaryshareholdersofthe | 5.14 | 0.1717 | 0.1717 |
| ProfitasofReportingPeriod | WeightedaverageROE(%) | EPS(Yuan/share) | |
| EPS-basic | EPS-diluted | ||
| Company | |||
| NetprofitattributabletoordinaryshareholdersoftheCompanyafterdeductionofnon-recurringprofitorloss | -9.74 | -0.3255 | -0.3255 |
XVI.SupplementaryMaterials1.ItemsandAmountsofNon-recurringProfitorLoss
| Item | Amount | Note |
| Gain/Lossarisingfromdisposalofnon-currentassets | 732,818,574.90 | |
| Taxrebates,reductionsorexemptionsduetoapprovalbeyondauthorityorthelackofofficialapprovaldocuments | - | |
| Governmentsubsidiesrecognizedinthecurrentperiod,exceptforthoseacquiredintheordinarycourseofbusinessorgrantedatcertainquotasoramountsaccordingtothegovernment’sunifiedstandards | 259,609,022.27 | |
| Capitaloccupationchargesonnon-financialenterprisesthatarerecordedintocurrentprofitorloss | - | |
| GainsduetothattheinvestmentcostsfortheCompanytoobtainsubsidiaries,associatesandjointventuresarelowerthantheenjoyablefairvalueoftheidentifiablenetassetsoftheinvesteeswhenmakingtheinvestments | 220,045,229.63 | |
| Gain/Lossonnon-monetaryassetswap | - | |
| Gain/Lossonentrustingotherswithinvestmentsorassetmanagement | 182,022,653.32 | |
| AssetimpairmentprovisionsduetoactsofGodsuchasnaturaldisasters | - | |
| Gain/Lossfromdebtrestructuring | - | |
| Expensesonbusinessreorganization,suchasexpensesonstaffarrangements,integration,etc. | - | |
| Gain/Lossonthepartoverthefairvalueduetotransactionswithdistinctlyunfairprices | - | |
| Currentnetprofitorlossofsubsidiariesacquiredinbusinesscombinationunderthesamecontrolfromperiod-beginningtocombinationdate | - | |
| Gain/LossincurredfromcontingencyunrelatedtotheCompany’snormaloperatingbusinesses. | - |
| Item | Amount | Note |
| Gain/Lossonchangesinfairvaluearisingfromholdingoftradingfinancialassetsandliabilitiesandinvestmentincomefromdisposaloftradingfinancialassets,financialliabilitiesandavailable-for-salefinancialassetsotherthaneffectivehedgebusinessrelatedtotheCompany’snormaloperatingbusinesses | 39,542,461.74 | |
| Reverseofbaddebtprovisionofaccountsreceivableindividuallyconductingimpairmenttest | - | |
| Gain/lossonentrustmentloans | 1,389,042.48 | |
| Gain/lossonchangeinfairvalueofinvestmentpropertyofwhichthesubsequentmeasurementiscarriedoutadoptingfairvaluemethod | - | |
| Effectoncurrentprofitorlosswhenaone-offadjustmentismadetocurrentprofitorlossaccordingtorequirementsoftaxation,accountingandotherrelevantlawsandregulations | - | |
| Custodyfeeincomewhenentrustedwithoperation | - | |
| Othernon-operatingincomeandexpenseotherthantheabove | 62,249,326.12 | |
| Projectconfirmedwiththedefinitionofnon-recurringgainsandlossesandlosses | 17,974,523.98 | |
| Subtotal | 1,515,650,834.44 | |
| Incometaxeffects | 251,343,320.95 | |
| Non-controllinginterestseffects(aftertax) | 67,121,398.75 | |
| Total | 1,197,186,114.73 |
PartXIIDocumentsAvailableforReference
I.ThefinancialstatementswiththesignaturesandsealsoftheCompany’slegalrepresentative,ChiefFinancialOfficerandheadofthefinancialdepartment;II.TheoriginalcopyoftheIndependentAuditor’sReportwiththesealoftheCPAfirmandthesignatures&sealsofthecertifiedpublicaccountants;III.TheoriginalsofalltheCompany’sdocumentsandannouncementsdisclosedtothepublicvianewspapersdesignatedbytheCSRCintheReportingPeriod;andIV.Otherrelevantmaterials.
TheBoardofDirectorsKonkaGroupCo.,Ltd.
28March2019