KONKAGROUPCO.,LTD.
INTERIMREPORT2019
2019-76
August2019
PartIImportantNotes,TableofContentsandDefinitionsTheBoardofDirectors(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.TheCompanyhasnointerimdividendplan,eitherintheformofcashorstock.ThisReportanditssummaryhavebeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionsshallprevail.
TableofContents
InterimReport2019 ...... 1
PartIImportantNotes,TableofContentsandDefinitions ...... 2
PartIICorporateInformationandKeyFinancialInformation ...... 8
PartIIIBusinessSummary ...... 11
PartIVOperatingPerformanceDiscussionandAnalysis ...... 14
PartVSignificantEvents ...... 28
PartVIShareChangesandShareholderInformation ...... 47
PartVIIPreferredShares ...... 51
PartVIIIDirectors,SupervisorsandSeniorManagement ...... 52
PartIXCorporateBonds ...... 53
PartXFinancialStatements ...... 58
PartXIDocumentsAvailableforReference ...... 309
Definitions
Term
| Term | Definition |
| The“Company”,the“Group”,“KonkaGroup”or“we” | KonkaGroupCo.,Ltd.anditsconsolidatedsubsidiaries,exceptwherethecontextotherwiserequires |
| AnhuiElectricalAppliance | AnhuiKonkaElectricalApplianceTechnologyCo.,Ltd. |
| AnhuiKonka | AnhuiKonkaElectronicCo.,Ltd. |
| AnhuiTongchuang | AnhuiKonkaTongchuangElectricalAppliancesCo.,Ltd. |
| AnhuiZhilian | AnhuiKonkaZhilianE-CommerceCo.,Ltd. |
| BeijingKonkaElectronic | BeijingKonkaElectronicCo.,Ltd. |
| BoluoKonkaPrecision | BoluoKonkaPrecisionTechnologyCo.,Ltd. |
| BoluoKonka | BoluoKonkaPCBCo.,Ltd. |
| IndustrialNewTown | SichuanKonkaIndustrialNewTownDevelopmentCo.,Ltd. |
| ChengduAnren | ChengduAnrenKonkaCulturalandCreativeIncubatorManagementCo.,Ltd. |
| ChengduKonkaIncubator | ChengduKonkaIncubatorManagementCo.,Ltd. |
| ChuzhouKangyong | ChuzhouKangyongHealthIndustryDevelopmentCo.,Ltd. |
| ChuzhouKonkaTID | ChuzhouKonkaTechnology&IndustryDevelopmentCo.,Ltd. |
| ChuanghuiSmart | NanjingChuanghuiSmartTechnologyCo.,Ltd. |
| ElectronicsTechnology | ShenzhenKonkaElectronicsTechnologyCo.,Ltd. |
| DongguanPacking | DongguanKonkaPackingMaterialsCo.,Ltd. |
| DongguanKonka | DongguanKonkaElectronicCo.,Ltd. |
| DongguanKonkaInvestment | DongguanKonkaInvestmentCo.,Ltd. |
| HainanTechnology | HainanKonkaTechnologyIndustryDevelopmentCo.,Ltd. |
| HefeiKONSEMI | HefeiKONSEMIStorageTechnologyCo.,Ltd. |
| JialiInternational | JialiInternational(HongKong)Limited |
| JiaxinTechnology | JiaxinTechnologyCo.,Ltd. |
| JiangxiKonka | JiangxiKonkaNewMaterialTechnologyCo.,Ltd. |
| KonkaElectricalAppliancesInternationalTrading | KonkaElectricalAppliancesInternationalTradingCo.,Ltd. |
| KonkaElectricalAppliancesInvestment | KonkaElectricalAppliancesInvestment&DevelopmentCo.,Ltd. |
| KonkaFactoring | KonkaFactoring(Shenzhen)Co.,Ltd. |
| KonkaMaterial | HainanKonkaMaterialTechnologyCo.,Ltd. |
| KonkaVentures | KonkaVenturesDevelopment(Shenzhen)Co.,Ltd. |
| KonkaEnterpriseService | GuiyangKonkaEnterpriseServiceCo.,Ltd. |
KonkaElectricalAppliances
| KonkaElectricalAppliances | ShenzhenKonkaElectricalAppliancesCo.,Ltd. |
| KonkaHuanjia | KonkaHuanjia(Dalian)EnvironmentalTechnologyCo.,Ltd. |
| KonkaHuanjia(Henan) | KonkaHuanjia(Henan)EnvironmentalTechnologyCo.,Ltd. |
| KonkaUnifortune | ShenzhenKonkaUnifortuneTechnologyCo.,Ltd. |
| KonkaEnterpriseManagement | GuizhouKonkaEnterpriseManagementServiceCo.,Ltd. |
| KonkaRonghe | KonkaRongheIndustrialTechnology(Foshan)Co.,Ltd. |
| KonkaEco-Development | ShenzhenKonkaEco-DevelopmentInvestmentCo.,Ltd. |
| KonkaSuyuan | ShenzhenKonkaSuyuanInvestmentIndustrialCo.,Ltd. |
| KonkaSuiyong | KonkaSuiyongInvestment(Shenzhen)Co.,Ltd. |
| Kangjiatong | SichuanKangjiatongTechnologyCo.,Ltd. |
| KonkaInvestment | ShenzhenKonkaInvestmentHoldingCo.,Ltd. |
| KonkaE-display | ShenzhenKonkaE-displayCo.,Ltd. |
| KonkaSmartTech | KonkaSmartTechLimited |
| KonkaCapital | ShenzhenKonkaCapitalEquityInvestmentManagementCo.,Ltd. |
| KonkaLeasing | KonkaFinancialLeasing(Tianjin)Co.,Ltd. |
| Kangjietong | Kangjietong(HongKong)Limited |
| KangqiaoEasyChain | ShenzhenKangqiaoEasyChainTechnologyCo.,Ltd. |
| KangquanEnterprise | ShenzhenKangquanEnterpriseManagementConsultingCo.,Ltd. |
| KangzhiTrade | AnhuiKangzhiTradeCo.,Ltd. |
| Cross-BorderTechnologicalInnovation | ShenzhenKonkaCross-BorderTechnologicalInnovationServiceCo.,Ltd. |
| MudanjiangAppliances | MudanjiangArcticOceanAppliancesCo.,Ltd. |
| NanoCrystallizedGlass | JiangxiGoldenPhoenixNanoCrystallizedGlassCo.,Ltd. |
| NanjingKonka | NanjingKonkaSmartTechnologyCo.,Ltd. |
| KonkaEurope | Konka(Europe)Co.,Ltd. |
| FittingsTechnology | ShenzhenKonkaElectronicFittingsTechnologyCo.,Ltd. |
| KonkaPengrun | ShenzhenKonkaPengrunTechnology&IndustryCo.,Ltd. |
| XiamenDalong | XiamenDalongTradingCo.,Ltd. |
| ShandongKangxin | ShandongKangxinIndustrialDevelopmentCo.,Ltd. |
| CommercialSystemTechnology | ShenzhenKonkaCommercialSystemTechnologyCo.,Ltd. |
| ShanghaiKonka | ShanghaiKonkaIndustrialCo.,Ltd. |
| ShanghaiXinfeng | ShanghaiXinfengZhuoqunPCBCo.,Ltd. |
| ShenzhenHuanan | ShenzhenHuananInvestmentPartnership(LimitedPartnership) |
| ShenzhenKONSEMI | ShenzhenKONSEMICo.,Ltd. |
| ShenzhenMeixin | ShenzhenMeixinSemiconductorTechnologyCo.,Ltd. |
| ShenzhenNianhua | ShenzhenNianhuaEnterpriseManagementCo.,Ltd. |
LifeElectricAppliance
| LifeElectricAppliance | ShenzhenKonkaLifeElectricApplianceCo.,Ltd. |
| ShengxingIndustrial | ShenzhenKonkaShengxingIndustrialCo.,Ltd. |
| SichuanKonka | SichuanKonkaSmartTerminalTechnologyCo.,Ltd |
| SuiningElectronicTechnologicalInnovation | SuiningKonkaElectronicTechnologicalInnovationCo.,Ltd. |
| SuiningKonkaIndustrialPark | SuiningKonkaIndustrialParkDevelopmentCo.,Ltd. |
| TelecommunicationTechnology | ShenzhenKonkaTelecommunicationsTechnologyCo.,Ltd. |
| Wankaida | ShenzhenWankaidaScienceandTechnologyCo.,Ltd. |
| HongKongKonka | HongKongKonkaLimited |
| KonkaMobility | KonkaMobilityCo.,Limited |
| XiaojiaTechnology | ShenzhenXiaojiaTechnologyCo.,Ltd. |
| FrestecElectricalAppliances | HenanFrestecElectricalAppliancesCo.,Ltd. |
| FrestecHouseholdAppliances | HenanFrestecHouseholdAppliancesCo.,Ltd. |
| FrestecRefrigeration | HenanFrestecRefrigerationApplianceCo.,Ltd. |
| XinfengMicrocrystalline | JiangxiXinfengMicrocrystallineJadeCo.,Ltd. |
| XingDaHongYe | GuangDongXingDaHongYeElectronicCo.,Ltd. |
| YantaiKonka | YantaiKonkaHealthcareEnterpriseServiceCo.,Ltd. |
| YantaiKonkaIndustrial | YantaiKonkaIndustrialCo.,Ltd. |
| YantaiKangjin | YantaiKangjinTechnologyDevelopmentCo.,Ltd. |
| E-displayService | ShenzhenE-displayServiceCo.,Ltd. |
| YibinKonkaTechnologyPark | YibinKonkaTechnologyParkOperationCo.,Ltd. |
| YibinKonkaIncubator | YibinKonkaIncubatorManagementCo.,Ltd. |
| MobileInterconnection | ShenzhenKonkaMobileInterconnectionTechnologyCo.,Ltd. |
| YiheElectronic | HefeiYiheElectronicCo.,Ltd. |
| YifangTechnology | ShenzhenKonkaYifangTechnologyCo.,Ltd. |
| E3info | E3info(Hainan)TechnologyCo.,Ltd. |
| E2info | ShenzhenE2infoNetworkTechnologyCo.,Ltd. |
| EconTechnology | ShandongEconTechnologyCo.,Ltd.(inclusiveofitsconsolidatedsubsidiaries) |
| YoushiKangrong | YoushiKangrongCultureCommunicationCo.,Ltd. |
| Youzhihui | ShenzhenYouzhihuiTechnologyCo.,Ltd. |
| SmartTechnology | YibinKonkaSmartTechnologyCo.,Ltd. |
| ChainKingdomMemoryTechnologies | ChainKingdomMemoryTechnologiesCo.,Limited |
| ChainKingdomMemoryTechnologies(Shenzhen) | ChainKingdomMemoryTechnologies(Shenzhen)Co.,Ltd. |
| ChongqingKonka | ChongqingKonkaTechnologyDevelopmentCo.,Ltd. |
CSRC
| 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.(ifany) | 康佳集团 | ||
| CompanynameinEnglish(ifany) | KONKAGROUPCO.,LTD | ||
| Abbr.(ifany) | KONKAGROUP | ||
| Legalrepresentative | LiuFengxi | ||
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 |
IIIOtherInformation
1.ContactInformationoftheCompanyIndicatebytickmarkwhetheranychangeoccurredtotheregisteredaddress,officeaddressandtheirzipcodes,websiteaddressandemailaddressoftheCompanyintheReportingPeriod.
□Applicable√NotapplicableNochangeoccurredtothesaidinformationintheReportingPeriod,whichcanbefoundinthe2018AnnualReport.
2.MediaforInformationDisclosureandPlacewherethisReportisLodgedIndicatebytickmarkwhetheranychangeoccurredtotheinformationdisclosuremediaandtheplaceforlodgingtheCompany’speriodicreportsintheReportingPeriod.
□Applicable√NotapplicableThenewspapersdesignatedbytheCompanyforinformationdisclosure,thewebsitedesignatedbytheCSRCfordisclosingtheCompany’speriodicreportsandtheplaceforlodgingsuchreportsdidnotchangeintheReportingPeriod.Thesaidinformationcanbefoundinthe2018AnnualReport.IVKeyFinancialInformationIndicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.
□Yes√No
H12019
| H12019 | H12018 | Change(%) | |
| Operatingrevenue(RMB) | 26,036,442,813.84 | 17,625,414,769.82 | 47.72% |
| Netprofitattributabletothelistedcompany’sshareholders(RMB) | 352,767,020.73 | 341,793,039.03 | 3.21% |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses(RMB) | -622,911,633.57 | -300,870,612.80 | -107.04% |
| Netcashgeneratedfrom/usedinoperatingactivities(RMB) | -2,042,956,171.77 | -1,838,158,705.86 | -11.14% |
| Basicearningspershare(RMB/share) | 0.1465 | 0.1419 | 3.24% |
| Dilutedearningspershare(RMB/share) | 0.1465 | 0.1419 | 3.24% |
| Weightedaveragereturnonequity(%) | 4.25% | 4.19% | 0.06% |
| 30June2019 | 31December2018 | Change(%) | |
| Totalassets(RMB) | 37,939,411,460.71 | 32,985,061,889.03 | 15.02% |
| Equityattributabletothelistedcompany’sshareholders(RMB) | 8,239,642,204.00 | 8,104,736,790.53 | 1.66% |
VAccountingDataDifferencesunderChina’sAccountingStandardsforBusinessEnterprises(CAS)andInternationalFinancialReportingStandards(IFRS)andForeignAccountingStandards
1.NetProfitandEquityunderCASandIFRS
□Applicable√Notapplicable
NosuchdifferencesfortheReportingPeriod.
2.NetProfitandEquityDifferencesunderCASandForeignAccountingStandards
□Applicable√NotapplicableNosuchdifferencesfortheReportingPeriod.XIExceptionalGainsandLosses
√Applicable□Notapplicable
Unit:RMB
Item
| Item | H12019 | Note |
| Gainorlossondisposalofnon-currentassets(inclusiveofimpairmentallowancewrite-offs) | 570,011,162.17 | |
| Governmentsubsidieschargedtocurrentprofitorloss(exclusiveofgovernmentsubsidiesgivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsasperthegovernment’suniformstandards) | 320,821,164.45 | |
| Gainorlossonassetsentrustedtootherentitiesforinvestmentormanagement | 110,312,982.21 | |
| Gainorlossonfair-valuechangesintradingandderivativefinancialassetsandliabilities&incomefromdisposaloftradingandderivativefinancialassetsandliabilitiesandinvestmentsinotherdebtobligations(exclusiveoftheeffectiveportionofhedgesthatariseintheCompany’sordinarycourseofbusiness) | -13,291,264.69 | |
| Gainorlossonloanentrustments | 928,721.16 | |
| Non-operatingincomeandexpenseotherthantheabove | 19,460,574.99 | |
| Othergainsandlossesthatmeetthedefinitionofexceptionalgain/loss | 136,688,905.38 | |
| Less:Incometaxeffects | 82,538,800.98 | |
| Non-controllinginterestseffects(netoftax) | 86,714,790.39 | |
| Total | 975,678,654.30 | -- |
ExplanationofwhytheCompanyreclassifiesasrecurrentanexceptionalgain/lossitemdefinedorlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems:
√Applicable□Notapplicable
| Item | Amountinvolved(RMB) | Reason |
| Taxrebatesonsoftware | 23,063,806.91 | 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.InternetbusinessisbasedontheintelligentTVterminalssoldbyourcompany.Itmainlycarriesoutthreeaspectsofbusiness.Firstly,itworkswithotherInternetcompaniestoprovideenduserswith,amongothercontent,video,educational,music,medicalandgamecontenttogenerateearnings.Secondly,itanalysesuserbehavioursandoffercertainfree,interactiveservicestoincreaseattractivenesstousers,promoteitsbrandandstimulatedesireforitshardwareproducts.Finally,itistryingtobuildanInternetTVplatformwithtensofmillionsofusers,onwhichitwillprofitthroughcommercialandapplicationdistribution.ThisInternetTVbusinessiskeytotheCompany’sInternet-orientedtransformationandupgradetoadevelopmentmodelof“hardware+software”and“smartTV+endusers”.
2.TheWhiteGoodsSub-DivisionThewhitegoodsproducedbytheCompanymainlyincluderefrigerators,washingmachines,airconditioners,freezers,etc.,whicharesoldthroughB2BandB2Cmainlytothedomesticmarket.AndtheCompanyprofitsfromthemarginsbetweenthecostsandthesellingpricesofitswhite
goods.
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.IISignificantChangesinMajorAssets
1.SignificantChangesinMajorAssets
Majorassets
| Majorassets | Mainreasonforsignificantchanges |
| Equityassets | Nosignificantchange |
| Fixedassets | Nosignificantchange |
Intangibleassets
| Intangibleassets | Nosignificantchange |
| Constructioninprogress | ConstructioninprogressattheendoftheReportingPeriodrose27.52%comparedtothebeginningamount,primarilydrivenbynewenvironmentalprojectsduringtheReportingPeriod. |
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,includingmorethan60branchcompanies,over200officesandabout3,300after-salesservicestationsacrossthecountry,directlyconnecttoaround3,000retailterminals,alongwithawell-establishedoverseasmarketingnetwork.Meanwhile,ithashigh-levelpersonnelwithyearsofrichmanagementandindustryexperience,aswellasahigh-qualityteamwithstrongexecutioncapabilities.
PartIVOperatingPerformanceDiscussionandAnalysis
IOverviewTheCompanycarriedonwithitslong-termdevelopmentstrategyof“Technology+Industry+Park”duringtheReportingPeriod,madeprogressinthefollowingaspects:
1.Themixed-ownershipreformprogressedfurther,bringingmorevitalitytothesubordinates.DuringtheReportingPeriod,inordertofurtherpromotethemixed-ownershipreformonthesubordinatesandrefinetheassetallocationoftheCompany,ShenzhenKonkaE-displayCo.,Ltd.introducedShenzhenMACCInvestmentHoldingCo.,Ltd.,whichownsupstreamresources,asashareholder.Inaddition,themultimediabusinessoftheCompanykeptenhancingitscompetitivenessbytakingreformmeasuressuchaspromotingthemixed-ownershipreformonthesalessubsidiariesandbuildinganindependentdomesticservicesystem.
2.EffortsweresteppedupintechnologicalR&Dtoenhanceindependentinnovation.DuringtheReportingPeriod,theCompanyproactivelyimplementedtheapproachof“independentinnovation+technologyintroduction”.R&Dinvestmentincreasedby14.74%year-on-yearinthefirsthalfofthisyear.andbuiltathree-levellabsystem(acomprehensivelabattheHeadquarterslevel,keylabsatthelevelofcooperationbetweentheHeadquartersandthebusinessdepartments,andimprovementlabsatthebusinessdepartmentlevel).Morethanadozenofhigh-endpersonnelfromaroundtheworldwereintroducedtothesystem,andanintentwasreachedwithresearchinstitutessuchastheShenzhenInstitutesofAdvancedTechnologyoftheChineseAcademyofSciencesandtheHarbinInstituteofTechnology,Shenzhentojointlyproducepost-doctoraltalent.Duringtheperiod,anumberofprogrammesfeaturingindependentinnovationbytheCompanyreceivedcommendations,includingtheNationalSecondPrizeforProgressinScienceandTechnologyfortheprogrammeoftheDigitalTVBroadcastSystemandtheDomesticationofCoreChips,theThirdPrizeforProgressinScienceandTechnologyfortheprogrammeoftheResearchandIndustrializationofKeyQualityManagementTechnologiesforFoodinRefrigeratorsbytheChinaLightIndustryCouncil,aswellastheinclusionoftheprogrammeofthe8KEquipmentEnd-to-EndSignalConnectionKeyTechnologyandR&DofTerminalDisplayProductsintheKeyR&DProgrammesofGuangdongProvince.
3.TheCompanycontinuedtorevitalizetheKonkabrand.DuringtheReportingPeriod,theCompanytookproactivemeasurestorevitalizeitsbrandthroughtheapproachof“enhancethetopbrandimage,increasethebrand’spopularityamongyoungpeople,andupgradethebrandimagebydeliveringagoodbrandstory”.Thebrandpromotioninvestmentincreasedby
20.08%year-on-yearinthefirsthalfofthisyear.TheCompanytriedtomakeitsbrandmore
attractivetoyoungandinternationalconsumersbymeansofdeepcooperationwithwidely-recognizedmediaandplatforms,aswellaswithLuHan,atopstar.
4.Thecorebusinessessawfurtherimprovement.Asaresult,itrecordedoperatingrevenueofRMB26.036billionfortheperiod,up47.72%year-on-year.DuringtheReportingPeriod,theenvironmentalbusinessreportedclosetoRMB4.863billioninoperatingrevenuewithsteadyprogressmadeinwatertreatment,recyclingofrenewableresourcesandnewmaterials;thewhitegoodsbusinessposteda50%year-on-yeargrowthinoperatingrevenuethankstomeasuressuchastheintegrationofonlineandofflinemarketingandproductupgradeinadditiontotheintegrationofthe“Konka+Frestec”brandresources;andthemultimediabusinessproactivelyrefineditsproductmix,promotedmechanismreformandsawamarkedlylargersizeofboththee-commerceandoverseasoperations,whereagreatdealofeffortwasput;.
5.Technologyparkdevelopmentmovedon.Accordingtothestrategyof“Technology+Industry+Park”,theCompanykeptpacewiththegovernmentplanningforindustrystructureadjustmentandtransformationandupgrade,andproactivelypromoteditstechnologyparkbusinessonthebasisofitsuniquemarket,industryandoperationalresources.Followingtheimplementationofanumberoftechnologyparkprojectsin2018,theCompanymovedontoplanfornewparksinHaimen,Lankao,Yantai,ChongqingandothercitiesintheReportingPeriod.IIAnalysisofCoreBusinessesSee“IOverview”above.Year-on-yearchangesinkeyfinancialdata:
Unit:RMB
H12019
| H12019 | H12018 | Change(%) | Mainreasonforchange | |
| Operatingrevenue | 26,036,442,813.84 | 17,625,414,769.82 | 47.72% | Newinclusionofenvironmentalrevenueandyear-on-yearincreaseinsupplychaintraderevenue |
| Costofsales | 24,674,042,371.13 | 16,442,256,445.26 | 50.06% | |
| Sellingexpense | 1,067,945,914.36 | 1,103,181,074.51 | -3.19% | |
| Administrativeexpense | 347,924,642.43 | 227,818,772.57 | 52.72% | NewsubsidiariesintheCurrentPeriod |
| Financecosts | 414,260,463.03 | 36,292,909.41 | 1041.44% | PrivateplacementsofRMB3.5billioncorporatebondsintheCurrentPeriod |
| Incometaxexpense | 10,311,393.19 | -17,446,049.13 | 159.10% | Disposalofassets,equitytransferand |
receiptofgovernmentsubsidybysubsidiaryintheCurrentPeriod
| receiptofgovernmentsubsidybysubsidiaryintheCurrentPeriod | ||||
| R&Dexpense | 157,210,338.94 | 137,008,896.76 | 14.74% | |
| Netcashgeneratedfrom/usedinoperatingactivities | -2,042,956,171.77 | -1,838,158,705.86 | -11.14% | |
| Netcashgeneratedfrom/usedininvestingactivities | -673,736,084.26 | -343,094,565.17 | -96.37% | |
| Netcashgeneratedfrom/usedinfinancingactivities | 3,992,809,825.25 | 2,880,630,318.57 | 38.61% | |
| Netincreaseincashandcashequivalents | 1,267,096,052.81 | 664,088,931.90 | 90.80% |
MaterialchangestotheprofitstructureorsourcesoftheCompanyintheReportingPeriod:
□Applicable√NotapplicableNosuchchanges.Breakdownofcorebusinesses:
Unit:RMB
| Operatingrevenue | Costofsales | Grossprofitmargin | YoYchangeinoperatingrevenue(%) | YoYchangeincostofsales(%) | YoYchangeingrossprofitmargin(%) | |
| Byoperatingdivision | ||||||
| Supplychainmanagement | 14,549,000,969.03 | 14,359,602,494.69 | 1.30% | 45.36% | 44.67% | 0.47% |
| Electronics | 6,292,729,392.42 | 5,545,179,041.15 | 11.88% | -6.31% | -4.58% | -1.60% |
| Environmentalprotection | 4,863,145,443.76 | 4,524,853,380.07 | 6.96% | 6138.69% | 8516.26% | -25.67% |
| Byproductcategory | ||||||
| Supplychaintrade | 14,549,000,969.03 | 14,359,602,494.69 | 1.30% | 45.36% | 44.67% | 0.47% |
| Environmentalprotection | 4,863,145,443.76 | 4,524,853,380.07 | 6.96% | 6138.69% | 8516.26% | -25.67% |
| ColourTVs | 3,844,847,424.42 | 3,596,446,860.11 | 6.46% | -22.53% | -17.38% | -5.84% |
| Whitegoods | 1,637,709,425.79 | 1,345,643,531.66 | 17.83% | 51.03% | 50.80% | 0.12% |
| Mobilephones | 205,434,258.43 | 201,988,459.74 | 1.68% | 0.82% | -1.18% | 1.98% |
| Other | 604,738,283.78 | 401,100,189.64 | 33.67% | 29.93% | 10.90% | 11.38% |
| Byoperatingsegment | ||||||
| Overseas | 16,274,631,867.43 | 15,833,504,916.19 | 2.71% | 34.15% | 32.58% | 1.15% |
| Domestic | 9,430,243,937.78 | 8,596,129,999.73 | 8.85% | 101.84% | 123.44% | -8.81% |
IIIAnalysisofNon-CoreBusinesses
√Applicable□Notapplicable
Unit:RMB
Amount
| Amount | As%oftotalprofit | Source/Reason | Exceptionalorrecurrent | |
| Returnoninvestment | 559,161,027.92 | 114.34% | TransferofsomeequityinterestsinNanjingK-StarTechnologyParkOperationandManagementCo.,Ltd.,ShenzhenKonkaE-displayCo.,Ltd.andChuzhouKonkaTechnology&IndustryDevelopmentCo.,Ltd.intheCurrentPeriod | Exceptional |
| Gain/lossonchangesinfairvalue | -3,005,381.67 | -0.61% | Exceptional | |
| Assetimpairments | -11,717,767.29 | -2.40% | Exceptional | |
| Non-operatingincome | 22,269,442.09 | 4.55% | Exceptional | |
| Non-operatingexpense | 3,469,741.51 | 0.71% | Exceptional |
IVAnalysisofAssetsandLiabilities
1.MaterialChangesinAssetComposition
Unit:RMB
| 30June2019 | 30June2018 | Changeinpercentage(%) | Reasonformaterialchange | |||
| Amount | As%oftotalassets | Amount | As%oftotalassets | |||
| Monetarycapital | 5,670,267,120.55 | 14.95% | 3,911,820,154.60 | 13.90% | 1.05% | |
| Accountsreceivable | 5,468,498,179.21 | 14.41% | 4,428,390,613.21 | 15.74% | -1.33% | |
| Inventories | 5,810,235,773.06 | 15.31% | 4,854,235,062.74 | 17.25% | -1.94% | |
| Investmentproperty | 208,008,718.57 | 0.55% | 213,639,992.84 | 0.76% | -0.21% | |
| Long-term | 2,846,608,296.03 | 7.50% | 2,187,539,867.00 | 7.78% | -0.28% | |
equityinvestments
| equityinvestments | |||||
| Fixedassets | 2,228,083,633.72 | 5.87% | 1,789,101,811.32 | 6.36% | -0.49% |
| Constructioninprogress | 2,776,018,241.52 | 7.32% | 120,644,724.53 | 0.43% | 6.89% |
| Short-termborrowings | 13,163,667,813.10 | 34.70% | 10,397,447,703.32 | 36.96% | -2.26% |
| Long-termborrowings | 1,284,700,000.00 | 3.39% | 501,000,000.00 | 1.78% | 1.61% |
2.AssetsandLiabilitiesatFairValue
√Applicable□Notapplicable
Unit:RMB
| Item | Beginningamount | Gain/lossonfair-valuechangesintheReportingPeriod | Cumulativefair-valuechangeschargedtoequity | ImpairmentallowancefortheReportingPeriod | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Endingamount |
| Financialassets | |||||||
| 1.Tradingfinancialassets(exclusiveofderivativefinancialassets) | 66,959,651.89 | -5,464,984.92 | 61,494,666.97 | ||||
| 2.Derivativefinancialassets | |||||||
| 3.Investmentsinotherdebtobligations | |||||||
| 4.Investmentsinotherequityinstruments | 23,940,214.36 | 4,800,000.00 | 19,140,214.36 | ||||
| Subtotaloffinancialassets | 90,899,866.25 | 4,800,000.00 | -5,464,984.92 | 80,634,881.33 | |||
| Investmentproperty | |||||||
| Productivelivingassets | |||||||
| Other | 548,230,000.00 | 1,000,134,400.00 | 1,548,364,400.00 | ||||
| Totaloftheabove | 639,129,866.25 | 4,800,000.00 | 1,000,134,400.00 | -5,464,984.92 | 1,628,999,281.33 | ||
| Financialliabilities | 2,459,603.25 | -2,459,60 | - |
3.25
SignificantchangestothemeasurementattributesofthemajorassetsintheReportingPeriod:
□Yes√No
3.RestrictedAssetRightsasatthePeriod-End
3.25
Item
| Item | Endingcarryingvalue（RMB’0,000） | Reasonforrestriction |
| Monetarycapital | 96,902.16 | Amongthem,RMB579,721,300isallkindsofdepositthatcannotbewithdrawnatanytime;RMB315millionisatimedeposit;RMB49,081,800isthefundsofthehouseholdsunderthesupervisionofrepayment;RMB19.8millionindepositspledgedasloans;RMB3.22millionisthelawsuitfrozenfund;RMB2.1985millionrestrictedduetootherreasons. |
| Notesreceivable | 118,688.30 | Asof30June2019,theCompanyhaspledgedthenotesreceivablewiththebookvalueofRMB1,186.883millionforissuingbankacceptancebills,lettersofcredit,lettersofguarantee,tradefinancingandothercomprehensivefinancingservices. |
| Fixedassets | 36,202.64 | Formortgageborrowings.Referto25.Short-termBorrowingsand34.Long-termBorrowingsinNoteVI |
| Intangibleassets | 13,805.57 | |
| Long-termreceivables | 34,941.65 | Forpledgeloans.Referto34.Long-termBorrowingsinNoteVI |
| Total | 300,540.32 |
VInvestmentsMade
1.TotalInvestmentAmount
√Applicable□Notapplicable
| AmountofReportingPeriod(RMB) | Amountofthesameperiodoflastyear(RMB) | Change(%) |
| 1,156,259,360.00 | 198,399,656.00 | 482.79% |
2.MajorEquityInvestmentsMadeintheReportingPeriod
□Applicable√Notapplicable
3.MajorNon-EquityInvestmentsOngoingintheReportingPeriod
√Applicable□Notapplicable
Unit:RMB
| Item | Investmentmeth | Fixedassetsinvestmentor | Industryinvolved | InputamountintheReportin | Accumulativeactualinput | Capitalresources | Progress | Estimatedrevenues | Accumulativerealizedrevenues | reasonfornot | Disclosuredate(if | Disclosureindex(if |
od
| od | not | gPeriod | amountasoftheperiod-end | asoftheperiod-end | meetingthescheduleandexpectedrevenues | any) | any) | |||||
| NewplantinDongguancity | Self-build | Yes | Electronicindustry | 0 | 0 | Self-ownedfunds | 0 | / | N/A | 11March2017 | http://www.cninfo.com.cn/new/index | |
| YibinKonkaSmartTerminalHigh-TechPark | Self-build | Yes | Electronicindustry | 18,320,603.45 | 37,570,603.45 | Self-ownedfunds | 10.73% | / | N/A | 16December2017 | ||
| ChengduBeltandRoadHeadquarters | Self-build | Yes | Electronicindustry | 0 | 0 | Self-ownedfunds | 0 | / | N/A | 27June2018 | ||
| SuiningKonkaElectronictechnologyIndustrialPark | Self-build | Yes | Electronicindustry | 16,578,955.00 | 16,578,955.00 | Self-ownedfunds | 1.01% | / | N/A | 17October2018 | ||
| Konka(Chuzhou)SmartAppliancesandEquipmentIndustrialPark | Self-build | Yes | Electronicindustry | 10,298,270.02 | 87,286,438.02 | Self-ownedfunds | 7.74% | / | N/A | 25December2018 | ||
| HaimenHeadquarterforeasternChina | Self-build | Yes | Electronicindustry | 0 | 0 | Self-ownedfunds | 0 | / | N/A | 30April2019 |
LankaoEnvironmentalProtectionBusinessIndustrialPark
| LankaoEnvironmentalProtectionBusinessIndustrialPark | Self-build | Yes | Environmentalprotectionindustry | 10,041,100.00 | 10,041,100.00 | Self-ownedfunds | 3.36% | / | N/A | 21May2019 | ||
| ChongqingKonkaSemi-conductorOptoelectronicsIndustrialPark | Self-build | Yes | Electronicindustry | 0 | 0 | Self-ownedfunds | 0 | / | N/A | 14June2019 | ||
| Total | -- | -- | -- | 55,238,928.47 | 151,477,096.47 | -- | -- | -- | -- | -- |
Note:(1)ConcerningtheDongguancity’snewplant,preparationsareunderwayandthegovernmenthasputoutthetargetlandforbids.
(2)Yibinwithrespecttothesmartterminalhigh-techpark,thelandfortheprojecthasbeenobtainedandthemainbodyisunderconstruction.
(3)AsfortheChengduBeltandRoadHeadquarters,preparationsareunderwayandtheCompanyiswaitingforthelocalgovernmenttoputouttheprojecttargetlandforbids.
(4)AsforSuiningKonkaElectronictechnologyIndustrialPark,theindustrialestateof156acreshasbeenobtainedandtheCompanyispreparingnecessarydocumentsforconstruction.
(5)WithrespecttoKonka(Chuzhou)SmartAppliancesandEquipmentIndustrialPark,thelandusedfortheprojecthasbeenobtainedandtheconstructionofsupportingareaforlivingisinprogress.
(6)ChongqingKonkaSemi-conductorOptoelectronicsIndustrialPark,theprojectcompanyhasbeensetupandtheCompanyiswaitingforthelocalgovernmenttoputouttheprojecttargetlandforbids.
(7)AsforLankaoEnvironmentalProtectionIndustrialPark,thelandusedfortheprojecthasbeenobtainedandisunderthepreparationforconstruction.
(8)AsforHaimenHeadquartersforEasternChina,preparationsareunderwayandtheCompanyiswaitingforthelocalgovernmenttoputouttheprojecttargetlandforbids.
4.FinancialInvestments
(1)SecuritiesInvestments
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(2)InvestmentsinDerivativeFinancialInstruments
√Applicable□Notapplicable
Fundingsourceforderivativeinvestment
| Fundingsourceforderivativeinvestment | U.S.dollarfinancings |
| Legalmattersinvolved(ifapplicable) | None |
| Disclosuredateofboardannouncementapprovingderivativeinvestment(ifany) | 24May2014 |
| Disclosuredateofshareholders’meetingannouncementapprovingderivativeinvestment(ifany) | 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 | Nomaterialchanges |
| Opinionofindependentdirectorsonderivativeinvestmentsandriskcontrol | ItisconsiderednecessaryfortheCompanytolockinforeign-currencyfinancingcoststhroughfinancialinstruments,becauseitcouldeffectivelyreducethecurrencyriskwhensecuringforeign-currencyfinancing.TheCompanyhasformulatedtheinternalcontrolmechanismforinvestmentinderivativefinancialinstruments,andtherelevantriskcontrolmeasuresthattheCompanyhastakenareconsideredeffective. |
Unit:RMB’0,000
| Typeofderivativefinancialinstrument | Beginningcontractualamount | Endingcontractualamount | Gain/lossinReportingPeriod | EndinginvestmentamountasapercentageoftheCompany’sendingnetassetvalue |
Forwardforexcontract
| Forwardforexcontract | 61,356.18 | 0 | -1,329.13 | 0% |
VISaleofMajorAssetsandEquityInterests
1.SaleofMajorAssets
□Applicable√NotapplicableNosuchcasesintheReportingPeriod
2.SaleofMajorEquityInterests
√Applicable□Notapplicable
| Counterparty | Equityinterestssold | Dateofsale | Sellingprice(RMB’0,000) | AmountcontributedbytheequityintereststonetincomeoftheCompanyfromperiod-beginningtodateofsale(RMB’0,000) | EffectofthesaleontheCompany | AmountcontributedbythesaletonetincomeoftheCompanyasapercentageoftheCompany’snetincome(%) | Pricingprinciple | Related-partytransactionornot | RelationshipbetweencounterpartyandtheCompany | Ownershipfullytransferredornot | Executedasscheduledornot,ifnot,statereasonandactionstaken | Disclosuredate | Indextodisclosedinformation |
| ShenzhenMACCInvestmentHoldingCo.,Ltd. | 15%ofequityinterestsofShenzhenKonkaE-displayCo.,Ltd. | 21June2019 | 3,750 | 80.73 | OptimizingtheCompany’sallocationofassetsandpromotingassets’liquidity | 26.06% | Marketprice | Not | Notrelated | Yes | Yes | 12April2019 | http://http://www.cninfo.com.cn/new/index |
ShenzhenOCTCapitalInvestmentManagementCo.,Ltd.
| ShenzhenOCTCapitalInvestmentManagementCo.,Ltd. | 51%ofequityinterestsofChuzhouKonkaTechnology&IndustryDevelopmentCo.,Ltd. | 21June2019 | 6352.05 | -124.49 | OptimizingtheCompany’sallocationofassetsandpromotingassets’liquidity | 18.26% | Notlessthanestimatevalue | Yes | Underthecontrolofthesameactualcontroller | Yes | Yes | 11June2019 |
VIIMajorSubsidiaries
√Applicable□NotapplicableMajorfully/majority-ownedsubsidiariesandthoseminority-ownedsubsidiarieswithanover10%effectontheCompany’snetprofit
Unit:RMB
| Name | RelationshipwiththeCompany | Principalactivity | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
| AnhuiKonkaElectronicCo.,Ltd. | Subsidiary | Productionandsaleofmultimediaproducts | RMB140,000,000 | 1,819,651,517.22 | 625,467,790.74 | 4,227,651,025.46 | 270,002,635.96 | 229,344,247.51 |
| HongKongKonkaCo.,Ltd. | Subsidiary | Export&importofelectromechanicalandelectronics | HKD500,000 | 2,723,237,995.41 | 255,615,942.86 | 2,611,943,571.45 | 38,658,252.16 | 33,927,798.70 |
| ChainKingdomMemoryTechnologiesCo.,Limited | Subsidiary | Trade,industryandscienceandtechnology | USD1,500,000 | 1,807,859,455.83 | 96,584,709.27 | 3,092,530,128.86 | 23,901,186.85 | 19,958,624.47 |
| EconTechnology | Subsidiary | Utilities-gasandwater | RMB164,000,000 | 4,586,863,672.26 | 864,561,098.06 | 828,589,882.95 | 79,361,771.06 | 70,765,359.97 |
SubsidiariesobtainedordisposedintheReportingPeriod:
√Applicable□Notapplicable
Subsidiary
| Subsidiary | HowsubsidiarywasobtainedordisposedintheReportingPeriod | Effectsonoveralloperationsandoperatingperformance |
| ShenzhenKonkaShengxingIndustrialCo.,Ltd. | Set-up | Nomaterialeffects |
| ShenzhenYouzhihuiTechnologyCo.,Ltd. | Set-up | Nomaterialeffects |
| SuiningKonkaElectronicTechnologicalInnovationCo.,Ltd. | Set-up | Nomaterialeffects |
| ShenzhenXiaojiaTechnologyCo.,Ltd. | Set-up | Nomaterialeffects |
| YibinKonkaSmartTechnologyCo.,Ltd. | Set-up | Nomaterialeffects |
| KonkaHuanjia(Henan)EnvironmentalTechnologyCo.,Ltd. | Set-up | Nomaterialeffects |
| (Consolidated) | ||||||||
| ShenzhenKonkaElectronicsTechnologyCo.,Ltd. | Subsidiary | Electronicindustry | RMB1,000,000,000 | 3,315,897,785.86 | 1,075,295,257.60 | 3,643,261,471.53 | 128,309,667.65 | 129,398,806.11 |
| E2info | Subsidiary | Internetandrelatedservices | RMB20,174,070.81 | 386,593,479.15 | 164,732,854.78 | 105,379,023.82 | 57,022,559.67 | 48,711,754.74 |
| KonkaHuanjia | Subsidiary | Popularityandapplicationoftechnologies | RMB180,000,000 | 2,064,552,715.31 | 320,294,584.58 | 3,907,011,852.57 | 117,564,885.43 | 89,593,343.05 |
| ChongqingKonkaTechnologyDevelopmentCo.,Ltd. | Subsidiary | R&D,production,salesandsupportserviceprovisionofelectronics | RMB120,000,000 | 240,011,000.00 | 210,008,250.00 | - | 120,011,000.00 | 90,008,250.00 |
| SuiningKonkaIndustrialParkDevelopmentCo.,Ltd. | Subsidiary | Development,operationandmanagementofindustrialpark | RMB200,000,000 | 415,248,735.67 | 286,005,991.75 | - | 114,674,655.67 | 86,005,991.75 |
LaizhouLairunSewageTreatmentCo.,Ltd.
| LaizhouLairunSewageTreatmentCo.,Ltd. | Set-up | Nomaterialeffects |
| FunanKangrunWaterCo.,Ltd. | Set-up | Nomaterialeffects |
| WeifangSihaiKangrunInvestmentOperationCo.,Ltd. | Set-up | Nomaterialeffects |
| HefeiYiheElectronicCo.,Ltd. | Set-up | Nomaterialeffects |
| LushanKangrunEnvironmentManagementCo.,Ltd. | Set-up | Nomaterialeffects |
| ShenzhenHuananInvestmentPartnership(LimitedPartnership) | Set-up | Nomaterialeffects |
| ChongqingKonkaTechnologyDevelopmentCo.,Ltd. | Set-up | Nomaterialeffects |
| DongguanKonkaInvestmentCo.,Ltd. | Set-up | Nomaterialeffects |
| RushanYikangShellTechnologyIncubatorCo.,Ltd. | Cancellation | Nomaterialeffects |
| YantaiHuanhaiXinzeEnterpriseManagementCo.,Ltd. | Cancellation | Nomaterialeffects |
| ShenzhenKonkaE-displayCo.,Ltd. | Transferof15%equityinterestsinShenzhenKonkaE-displayCo.,Ltd. | Theequityintereststransfergeneratedgreatgains |
| ChuzhouKonkaTechnology&IndustryDevelopmentCo.,Ltd. | Transferof51%equityinterestsinChuzhouKonkaTechnology&IndustryDevelopmentCo.,Ltd. | Theequityintereststransfergeneratedgreatgains |
Informationaboutmajormajority-andminority-ownedsubsidiaries:
NoneVIIIStructuredBodiesControlledbytheCompany
□Applicable√NotapplicableIXPerformanceForecastforJanuary-September2019WarningofforecastnegativenetprofitforJanuary-September2018orconsiderableYoYchangetherein,aswellasthereasons:
□Applicable√NotapplicableXRisksFacingtheCompanyandCountermeasuresTheCompany’sconsumerelectronicsbusinessisseeingadecreasedgrossprofitmargincausedbyslowgrowthindemandandincreasinglyfiercecompetitioninthecolorTV,whitegoodsandmobilephonemarkets.Inresponse,theCompanywilladoptmeasuresincludingadjustingthehardwareproductmix,strengtheningproductcompetitiveness,enhancingprofessionalisminuseroperation,improvingInternetoperations,andimprovinginternalmanagement.Asfortheenvironmentalprotectionbusiness,theCompanyisanewcomerinthissector.ItstillneedssometimeforthenewlyacquiredandinvestedenterprisestointegratewiththeCompanyinoperationalandmanagementmechanism,resourceandcorporateculture.Andagreatnumberof
reserveprojectsinthisbusinessaremakingmorerequirementsforhumanresources.Therefore,theCompanyhasstartedtoworkontherelevantoperationalmechanism,improveitsmonitoringofthemajority-ownedsubsidiaries’operations,andbringinvariousresourcessoastostrengthenitsoperationalcapabilitiesinthisrespect.
PartVSignificantEvents
IAnnualandExtraordinaryGeneralMeetingsConvenedduringReportingPeriod
1.GeneralMeetingsConvenedduringReportingPeriod
Meeting
| Meeting | Type | Investorparticipationratio | Conveneddate | Dateofresolutiondisclosure | Indextodisclosedresolutions |
| The1stExtraordinaryGeneralMeetingof2019 | Extraordinary | 24.31％ | 20February2019 | 21February2019 | http://www.cninfo.com.cn/new/index |
| 2018AnnualGeneralMeeting | Annual | 36.06％ | 13May2019 | 14May2019 |
2.ExtraordinaryGeneralMeetingsConvenedatRequestofPreferredShareholderswithResumedVotingRights
□Applicable√NotapplicableIIInterimDividendPlan
□Applicable√NotapplicableTheCompanyhasnointerimdividendplan,eitherintheformofcashorstock.IIICommitmentsoftheCompany’sActualController,Shareholders,RelatedPartiesandAcquirers,aswellastheCompanyItselfandOtherEntitiesFulfilledinReportingPeriodorOngoingatPeriod-End
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.IVEngagementandDisengagementofIndependentAuditorAretheinterimfinancialstatementsaudited?
□Yes√NoTheinterimfinancialstatementsareunaudited.VExplanationsGivenbyBoardofDirectorsandSupervisoryCommitteeRegardingIndependentAuditor's“ModifiedOpinion”forReportingPeriod
□Applicable√NotapplicableVIExplanationsGivenbyBoardofDirectorsRegardingIndependentAuditor's“ModifiedOpinion”forLastYear
□Applicable√NotapplicableVIIInsolvencyandReorganization
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
VIIILegalMattersMateriallawsuitsorarbitrations:
√Applicable□Notapplicable
Generalinformation
| Generalinformation | Involvedamount(RMB’0,000) | Provision | Progress | Decisionsandeffects | Executionofdecisions | Disclosuredate | Indextodisclosedinformation |
| Asforthedetails,pleaserefertotheNotes2.DescriptionoftheContingenciesoftheCommitmentsandtheContingenciesofChapterXIIoftheNotestotheFinancialReport. | |||||||
Otherlegalmatters:
□Applicable√NotapplicableIXPunishmentsandRectifications
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XCreditQualityoftheCompanyaswellasItsControllingShareholderandActualController
□Applicable√NotapplicableXIEquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XIIMajorRelated-PartyTransactions
1.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 | Purchaseofcommodi | Purchaseofmate | Negotiatedprice | Marketprice | 922.56 | 0.07% | 2,000 | Not | Cash | N/A | 30March2019 | http://www.cninfo.com.cn/ne |
tiesandservices
| tiesandservices | rialsandservices | w/index | |
| OCTEnterprisesCo.,Ltdanditssubsidiaries | Underthesameactualcontroller | Salesofgoodsandservices | SalesofLCDandservices | Negotiatedprice | Marketprice | 1,852.09 | 0.13% | 3,000 | Not | Cash | N/A | ||
| Total | -- | -- | 2,774.65 | 5000 | -- | -- | -- | -- | |||||
| Large-amountsalesreturnindetail | N/A | ||||||||||||
| GivetheactualsituationintheReportingPeriod(ifany)whereanestimatehadbeenmadeforthetotalvalueofcontinuingrelated-partytransactionsbytypetooccurintheReportingPeriod | TheCompanyhaspublishedtheForecastingPublicNoticeonRoutineRelated-partyTransactionfor2019onSecuritiesTimes,ShanghaiSecuritiesNewsandChinaSecuritiesJournalaswellastheInternetwebsitedesignatedbyCSRChttp://http://www.cninfo.com.cn/new/indexon30March2019.IntheReportingPeriod,thebasisforpricing,transactionprice,transactionamountandsettlementmethodsofrawmaterialspurchasedbytheCompanywerebasicallyinaccordancewiththeforecast.ThetotalamountwasRMB27.7465million. | ||||||||||||
| Reasonforanysignificantdifferencebetweenthetransactionpriceandthemarketreferenceprice(ifapplicable) | N/A | ||||||||||||
2.Related-PartyTransactionsRegardingPurchaseorSalesofAssetsorEquityInterests
□Applicable√Notapplicable
3.RelatedTransactionsRegardingJointInvestmentsinThirdParties
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
4.CreditsandLiabilitieswithRelatedParties
√Applicable□NotapplicableIndicatebytickmarkwhethertherewereanycreditsandliabilitieswithrelatedpartiesfornon-operatingpurposes.
√Yes□NoCreditsreceivablewithrelatedparties:
| Relatedparty | Relatedrelationship | Formingreason | Whetherthereisoccupationonnon-opera | Beginningbalance(RMB’0,000) | IncreasedintheReportingPeriod(RMB’0,0 | RecoveredintheReportingPeriod(RMB’0,0 | Interestrate | InterestintheReportingPeriod(RMB’0, | Endingbalance(RMB’0,000) |
tingcapitalornot
| tingcapitalornot | 00) | 00) | 000) | ||||||
| YibinOCTSanjiangRealEstateCo.,Ltd. | Subsidiaryofcontrollingshareholder | Borrowings | Not | 10,000 | 0 | 0 | 5.70% | 286.58 | 10,000 |
| EffectsofcreditswithrelatedpartiesontheCompany’soperatingresultsandfinancialconditions | None | ||||||||
Liabilitiespayablewithrelatedparties:
| Relatedparty | Relatedrelationship | Formingreason | Beginningbalance(RMB’0,000) | IncreasedintheReportingPeriod(RMB’0,000) | RepaidintheReportingPeriod(RMB’0,000) | Interestrate | InterestintheReportingPeriod(RMB’0,000) | Endingbalance(RMB’0,000) |
| OCTEnterprisesCo.,Ltd. | Controllingshareholder | TheCompanyappliesentrustedloantoit | 10,000.00 | 5.40% | 271.50 | 10,000.00 | ||
| 2,000.00 | 5.60% | 56.31 | 2,000.00 | |||||
| 140,000.00 | 140,000.00 | 6.00% | 3,080.00 | |||||
| 48,000.00 | 5.00% | 1,448.00 | 48,000.00 | |||||
| 100,000.00 | 6.00% | 3,016.67 | 100,000.00 | |||||
| 22,192.44 | 5.00% | 295.90 | 22,192.44 | |||||
| 27,656.00 | 5.00% | 656.83 | 27,656.00 | |||||
| 50,000.00 | 39,192.44 | 5.00% | 127.82 | 10,807.56 | ||||
| 50,000.00 | 5.00% | 1,256.94 | 50,000.00 | |||||
| 27,807.56 | 27,807.56 | 5.00% | 520.39 | |||||
| 17,000.00 | 17,000.00 | 5.00% | 63.75 | |||||
| 140,000.00 | 5.00% | 941.11 | 140,000.00 | |||||
| 10,000.00 | 5.40% | 271.50 | 10,000.00 | |||||
| EffectsofliabilitieswithrelatedpartiesontheCompany’soperatingresultsandfinancialconditions | TheCompanyappliesentrustedloanfromOCTEnterprisesCo.,Ltd.whichmeetstheneedsoftheCompany'sexistingbusinessdevelopmentandreducesthefinancingcost. | |||||||
5.OtherMajorRelated-PartyTransactions
√Applicable□Notapplicable
(1)TransferofequityinterestsofChuzhouKonkaTID:The11
thMeetingofthe9
thBoardofDirectorsoftheCompanyheldon6June2019approvedtheProposalonTransferof51%ofEquityInterestsofChuzhouKonkaTechnology&IndustryDevelopmentCo.,Ltd.byAgreementandtheCompanydecidedtotransfer51%equityinterestsofChuzhouKonkaTechnology&IndustryDevelopmentCo.,Ltd.toShenzhenOCTCapitalInvestmentManagementCo.,Ltd.viaagreementwiththepriceofRMB63.5205million.Atpresent,theCompanyhasreceivedthesharetransferpaymentandtheregistrationchangingproceduresofChuzhouKonkaTechnology&IndustryDevelopmentCo.,Ltd.hasbeencompleted.Indextothepublicannouncementsaboutthesaidrelated-partytransactionsdisclosed
Titleofpublicannouncement
| Titleofpublicannouncement | Disclosuredate | Disclosurewebsite |
| AnnouncementonTransferof51%ofEquitiesofChuzhouKonkaTechnology&IndustryDevelopmentCo.,Ltd.andRelated-partyTransactions | 11June2019 | http://http://www.cninfo.com.cn/new/index |
XIIIOccupationoftheCompany’sCapitalbyControllingShareholderorItsRelatedPartiesforNon-OperatingPurposes
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XIVMajorContractsandTheirExecution
1.Entrustment,ContractingandLeases
(1)Entrustment
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(2)Contracting
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(3)Leases
√Applicable□NotapplicableNosuchcasesintheReportingPeriod.Duringthereportingperiod,KangjiaR&DBuildingchargedabout37.3187millionyuaninrent.Projectsthatbringprofitsandlossestothecompanymorethan10%ofthetotalprofitsinthereportingperiod
□Applicable√NotapplicableDuringthereportingperiod,thereisnoleasingprojectwhichbringsprofitsandlossestothecompanyupto10%ofthetotalprofitsofthecompanyduringthereportingperiod.
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 | Not | Not | |||
| JiangxiZhongyiDecorationMaterialsCo.,Ltd. | 10,000 | 12December2016 | 10,000 | Joint-liability | Not | Not | |||
| JiangxiShanshiTechnologicalDevelopmentCo.,Ltd. | 10,000 | 12December2016 | 10,000 | Joint-liability | Not | Not | |||
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(A1) | 1,281 | TotalactualamountofsuchguaranteesintheReportingPeriod(A2) | 0 | ||||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(A3) | 208,781 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(A4) | 30,000 | ||||||
| GuaranteesprovidedbetweentheCompanyandsubsidiaries | |||||||||
| Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate(dateofagreementsigning) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot | |
| AnhuiTongchuang | 31March2017,23May2018and19September2018 | 90,000 | 7November2018 | 5,800 | Joint-liability | Oneyear | Not | Not | |
| 9May2018 | 4,500 | Joint-liability | Not | Not | |||||
19June2018
| 19June2018 | 3,000 | Joint-liability | Not | Not | ||||
| 20September2018 | 5,500 | Joint-liability | Oneyear | Not | Not | |||
| 10January2019 | 3,000 | Joint-liability | Oneyear | Not | Not | |||
| 11January2019 | 10,000 | Joint-liability | Oneyear | Not | Not | |||
| 23January2019 | 5,000 | Joint-liability | Oneyear | Not | Not | |||
| 24June2019 | 3,000 | Joint-liability | Oneyear | Not | Not | |||
| AnhuiKonka | 31March2017 | 110,000 | 6December2018 | 10,000 | Joint-liability | Oneyear | Not | Not |
| KonkaFactoring | 31March2018 | 300,000 | 21September2018 | 20,000 | Joint-liability | Oneyear | Not | Not |
| EconTechnology | 19September2018 | 120,000 | 10October2018 | 3,135 | Joint-liability | Oneyear | Not | Not |
| 23April2019 | 2,000 | Joint-liability | Oneyear | Not | Not | |||
| 13May2019 | 5,000 | Joint-liability | Oneyear | Not | Not | |||
| JiangxiKonka | 31October2018 | 60,000 | 4December2018 | 10,000 | Joint-liability | Oneyear | Not | Not |
| 7December2018 | 10,000 | Joint-liability | Oneyear | Not | Not | |||
| 18March2019 | 11,961 | Joint-liability | Twoyears | Not | Not | |||
| 28February2019 | 10,000 | Joint-liability | Oneyear | Not | Not | |||
| 27June2019 | 6,000 | Joint-liability | Oneyear | Not | Not | |||
| XingDaHongYe | 19September2018and30March2019 | 20,000 | 21November2018 | 5,800 | Joint-liability | Oneyear | Not | Not |
| 19April2019 | 4,000 | Joint-liability | Oneyear | Not | Not | |||
| 20May2019 | 1,000 | Joint-liability | Oneyear | Not | Not | |||
| Electronics | 19September2018 | 350,000 | 18April2019 | 58,000 | Joint-liability | One | Not | Not |
Technology
| Technology | year | |||||||||||||||
| 20June2019 | 5,000 | Joint-liability | Oneyear | Not | Not | |||||||||||
| AnhuiElectricalAppliance | 19September2018 | 30,000 | 2February2019 | 13,000 | Joint-liability | Fiveyears | Not | Not | ||||||||
| BoluoKonkaPrecision | 31March2018 | 5,000 | 20February2019 | 2,500 | Joint-liability | Twoyears | Not | Not | ||||||||
| HongKongKonka | 31March2017and31October2018 | 365,258 | 13March2019 | 15,868 | Joint-liability | Oneyear | Not | Not | ||||||||
| 7August2018 | 10,349 | Joint-liability | Oneyear | Not | Not | |||||||||||
| SichuanKonka | 31March2018 | 55,000 | 18March2019 | 4,000 | Joint-liability | Threeyears | Not | Not | ||||||||
| XinfengMicrocrystalline | 30March2019 | 25,000 | 19June2019 | 7,200 | Joint-liability | Oneyear | Not | Not | ||||||||
| NanoCrystallizedGlass | 30March2019 | 45,000 | 26June2019 | 10,000 | Joint-liability | Threeyears | Not | Not | ||||||||
| KonkaPengrun | 19September2018 | 20,000 | 24June2019 | 5,000 | Joint-liability | Oneyear | Not | Not | ||||||||
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(B1) | 140,200 | TotalactualamountofsuchguaranteesintheReportingPeriod(B2) | 181,529 | |||||||||||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(B3) | 2,043,394 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(B4) | 263,813 | |||||||||||||
| 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 | |||||||||
| XingDaHongYe | 1,000 | 13November2018 | 1,000 | Joint-liability | Twoyears | Not | Not | |||||||||
Compoundguarantees:
None
(2)IrregularitiesinProvisionofGuarantees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
3.OtherMajorContracts
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XVCorporateSocialResponsibility(CSR)
1.MaterialEnvironmentalIssuesIstheCompanyoranyofitssubsidiariesisidentifiedasamajorpolluterbytheenvironmentalprotectionauthorities?Yes
Nameofpolluter
| Nameofpolluter | Nameofmajorpollutants | Wayofdischarge | Numberofdischargeoutlets | Distributionofdischargeoutlets | Dischargeconcentration | Dischargestandardsimplemented | Totaldischarge | Approvedtotaldischarge | Excessivedischarge |
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(C1) | 0 | TotalactualamountofsuchguaranteesintheReportingPeriod(C2) | 0 | |||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(C3) | 87,300 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(C4) | 44,000 | |||
| Totalguaranteeamount(totalofthethreekindsofguaranteesabove) | ||||||
| TotalguaranteelineapprovedintheReportingPeriod(A1+B1+C1) | 141,481 | TotalactualguaranteeamountintheReportingPeriod(A2+B2+C2) | 181,529 | |||
| TotalapprovedguaranteelineattheendoftheReportingPeriod(A3+B3+C3) | 2,339,475 | TotalactualguaranteebalanceattheendoftheReportingPeriod(A4+B4+C4) | 337,813 | |||
| Totalactualguaranteeamount(A4+B4+C4)as%oftheCompany’snetassets | 41.00% | |||||
| Ofwhich: | ||||||
| Balanceofguaranteesprovidedforshareholders,actualcontrollerandtheirrelatedparties(D) | 0 | |||||
| Balanceofdebtguaranteesprovideddirectlyorindirectlyforobligorswithanover70%debt/assetratio(E) | 337,813 | |||||
| Amountbywhichthetotalguaranteeamountexceeds50%oftheCompany’snetassets(F) | 0 | |||||
| Totalofthethreeamountsabove(D+E+F) | 337,813 | |||||
| JointresponsibilitiespossiblyborneintheReportingPeriodforundueguarantees(ifany) | N/A | |||||
| Provisionofexternalguaranteesinbreachoftheprescribedprocedures(ifany) | N/A | |||||
XingDaHongYe
| 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；PM（dust）≤120mg/m3；oilfume≤2mg/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/daywiththetreatmentprocessremainingunchanged.Currently,thesewagetreatmentfacilitiesarefunctioningwellandthemainpollutant
dischargemeetsthedischargestandardsandenvironmentalassessmentstandards.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.hasestablishedriskpreventionmeasuresandemergencyresponseplans,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,withonlinemonitoringdatadisclosedinrealtimeandmanualmonitoringdatadisclosedonthenextdayaftercompletion.Inthecaseofpublicholidays,theoperationmonitoringdatafortheholidayperiodwill
bedisclosedonthefirstworkingdayaftertheholiday.Itemsmonitoredonamonthlybasiswillbedisclosedbythe25
thdayofthemonth.Itemsinspectedonaquarterlybasiswillbedisclosedbythe
th
dayofthelastmonthofthequarter.Theannualself-monitoringreportforthepreviousyearwillbedisclosedattheendofJanuaryeachyear.Inthecaseofshutdownwithdaysoff,thenumberofdaysoffwillbeindicatedintheinformationbarandrelatedproofswillbesubmittedtothemonitoringcenterofthemunicipalenvironmentalbureauforrecord.TheresultsaredisclosedonGuangdongProvinceKeyPollutionSourceRegulatoryInformationPlatformandonNationalPollutionSourceMonitoringInformationManagementandSharingPlatformforpublicmonitoring.
(5)OtherenvironmentalinformationthatshouldbedisclosedTheenvironmentalprotectioninvestmentofGuangdongXingdaHongyeElectronicsCo.,Ltd.forH1of2019wasapproximatelyRMB5.8million,mainlyusedastheenvironmentalengineeringinvestment(approximatelyRMB0.8million)andtheoperationofenvironmentalprotectionequipment(approximatelyRMB5million).
(6)OtherEnvironmentalInformationAccordingtotheexaminationbytheCompany,theCompanyanditsotherholdingsubsidiariesarenotkeypollutantunits.Allhavefaithfullyimplementedthelawsandregulationsrelatedtoenvironmentalprotection,suchasEnvironmentalProtectionLawofthePeople'sRepublicofChina,WaterPollutionPreventionandControlLawofthePeople'sRepublicofChina,LawofthePeople'sRepublicofChinaonthePreventionandControlofAtmosphericPollution,LawofthePeople'sRepublicofChinaonPreventionandControlofPollutionFromEnvironmentalNoise,LawofthePeople'sRepublicofChinaonthePreventionandControlofEnvironmentalPollutionbySolidWasteinthedailyproductionandoperation,withoutbeingpunishedforviolationsoflawsandregulationsduringtheReportingPeriod.
2.MeasuresTakenforTargetedPovertyAlleviation
(1)TargetedpovertyalleviationplansInaccordancewiththeguidingprinciplesofthestateonthedevelopmentofprecisionpovertyalleviation,theCompanyhasproactivelycarriedoutcriticalworkonpovertyalleviationandengagedinthetargetedsupportinSansuiCountyandTianzhuCountyinGuizhouProvince.
(2)SummaryoftheRelatedWorkDoneintheReportingPeriodDuringtheReportingPeriod,theCompanytookactivestepstohelpSansuiCountytocarryoutthemarketingworkinrespectofSansuiducks,includingproductsalesandpackageplanning,whicheffectivelydrovethesalesoflocalsubsidiaryagriculturalproducts.IntheH1of2019,theCompanyhasdonatedofficesuppliesofapproximatelyRMB378,000,includingtelevisionsetsandbookstothetwocounties.
(3)ResultsofTargetedMeasures
Indicator
| Indicator | Measurementunit | Quantity/Progress |
| 1.Generalresults | —— | —— |
| Including:materialstranslation | Tenthousand | 37.8 |
| 2.Itemizedresults | —— | —— |
| 9Otheritems | —— | —— |
| 9.2Amountofinput | Tenthousand | 37.8 |
(4)SubsequentPlansTofullyperformitsdutiesoftargetedpovertyalleviation,theCompanywilldoagoodjobfortheworkonpublicbrandestablishmentofnomorethanRMB1.58millionwhichwillbeusedforthepackageplanningandadvertisementpromotionofSansuiducksofSansuiCounty.XVI.OtherSignificantEvents
√Applicable□Notapplicable
(1)Privateplacementofcorporatebonds,assetsecuritizationofcommercialfactoringandassetsecuritizationofaccountsreceivable:Currently,theprivateplacementofcorporatebondsofRMB5billionhasbeenissued;theassetsecuritizationofcommercialfactoringandassetsecuritizationofaccountsreceivableareinmovingforward.
(2)NanjingKangxingyunHeadquartersBaseProjecthascompletedthetransferof17%equityoftheprojectcompanyinMarch2019.
(3)TheCompany’sapplicationforaprivateA-shareplacementwasacceptedforprocessingbytheCSRCon20May2019,andtheCompanyhasdiscloseditsreplytotheCSRC’squestionsregardingtheapplication.FollowingthereceiptoftheNotificationoftheCSRContheDiscontinuationoftheProcessingofanAdministrativePermitApplicationon29July2019,theCompanyhasrecentlyappliedtotheCSRCfortheresumptionoftheprocessing.ItisuncertainwhetherboththeprocessingresumptionandtheprivateA-shareplacementwillbeapprovedbytheCSRCornot.
(4)Disclosureindexofsignificantinformation
| AnnouncementNo. | Date | Title | Pageonnewspaper | Linkonhttp://www.cninfo.com.cn |
| 2019-01 | 4January2019 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB29,ShanghaiSecuritiesNews64etc. | http://http://www.cninfo.com.cn/new/index |
| 2019-02 | 15January2019 | AnnouncementontheProgressofOfferingGuaranteestothewholly-ownedsubsidiary | SecuritiesTimesB13,ShanghaiSecuritiesNews48etc. |
2019-03
| 2019-03 | 16January2019 | AnnouncementontheResultofPrivatePlacementofCorporateBondsin2019(PhaseI) | SecuritiesTimesB32,ShanghaiSecuritiesNews33etc. |
| 2019-04 | 18January2019 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB36,ShanghaiSecuritiesNews76etc. |
| 2019-05 | 25January2019 | AnnouncementontheProgressofOfferingGuaranteestothewholly-ownedsubsidiary | SecuritiesTimesB29,ShanghaiSecuritiesNews36etc. |
| 2019-06 | 26January2019 | Announcementonthe2018EarningsForecasts | SecuritiesTimesB20,ShanghaiSecuritiesNews32etc. |
| 2019-07 | 2February2019 | AnnouncementontheResolutionofthe4thMeetingofthe9thBoardofDirectors | SecuritiesTimesB36,ShanghaiSecuritiesNews33etc. |
| 2019-08 | 2February2019 | NoticeonConveningthe1stExtraordinaryGeneralMeetingof2019 | SecuritiesTimesB36,ShanghaiSecuritiesNews33etc. |
| 2019-09 | 2February2019 | AnnouncementonExternalFinancialAidsGeneratedfromPlannedTransferofPartialEquityofSubsidiaries | SecuritiesTimesB36,ShanghaiSecuritiesNews33etc. |
| 2019-10 | 12February2019 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB25,ShanghaiSecuritiesNews85etc. |
| 2019-11 | 15February2019 | AnnouncementonAccumulativeNewBorrowings | SecuritiesTimesB12,ShanghaiSecuritiesNews76etc. |
| 2019-12 | 2February2019 | AnnouncementontheResolutionofthe1stExtraordinaryGeneralMeetingof2019 | SecuritiesTimesB42,ShanghaiSecuritiesNews40etc. |
| 2019-13 | 14March2019 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB28,ShanghaiSecuritiesNews56etc. |
| 2019-14 | 19March2019 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB92,ShanghaiSecuritiesNews92etc. |
| 2019-15 | 19March2019 | AnnouncementonVolunteerInformationDisclosureofPre-winningtheBidforProject | SecuritiesTimesB92,ShanghaiSecuritiesNews92etc. |
| 2019-16 | 19March2019 | AnnouncementonAbnormalVolatilityofStockTrading | SecuritiesTimesB116,ShanghaiSecuritiesNews40etc. |
2019-17
| 2019-17 | 19March2019 | IndicativeAnnouncementonPlanningofPrivatePlacementofShares | SecuritiesTimesB116,ShanghaiSecuritiesNews40etc. |
| 2019-18 | 21March2019 | AnnouncementonOfferingOverseasLoanunderDomesticGuaranteetoForeignWholly-ownedSubsidiary | SecuritiesTimesB29,ShanghaiSecuritiesNews48etc. |
| 2019-19 | 28March2019 | AnnouncementonVolunteerInformationDisclosureofPre-winningtheBidforProject | SecuritiesTimesB33,ShanghaiSecuritiesNews40etc. |
| 2019-20 | 29March2019 | AnnouncementonInformationDisclosureofVoluntarinessofReceivingLetterofAcceptance | SecuritiesTimesB128,ShanghaiSecuritiesNews428etc. |
| 2019-21 | 30March2019 | AnnouncementontheAbstractofthe2018AnnualReport | SecuritiesTimesB41,ShanghaiSecuritiesNews529etc. |
| 2019-22 | 30March2019 | Announcementonthe2018AnnualReport | |
| 2019-23 | 30March2019 | AnnouncementontheResolutionofthe7thMeetingofthe9thBoardofDirectors | SecuritiesTimesB41,ShanghaiSecuritiesNews529etc. |
| 2019-24 | 30March2019 | AnnouncementontheResolutionofthe8thMeetingofthe9thSupervisoryCommittee | SecuritiesTimesB41,ShanghaiSecuritiesNews529etc. |
| 2019-25 | 30March2019 | AnnouncementonExternalGuarantees | SecuritiesTimesB42,ShanghaiSecuritiesNews529etc. |
| 2019-26 | 30March2019 | AnnouncementontheChangesofPartofAccountingPolicies | SecuritiesTimesB42,ShanghaiSecuritiesNews530etc. |
| 2019-27 | 30March2019 | AnnouncementontheExpectationofthe2019RoutineRelatedTransaction | SecuritiesTimesB43,ShanghaiSecuritiesNews530etc. |
| 2019-28 | 30March2019 | AnnouncementonInvolvingNumberofSubscriptorsafterPenetrationofSubscriptorsforPrivatePlacementofA-shares | SecuritiesTimesB42,ShanghaiSecuritiesNews530etc. |
| 2019-29 | 30March2019 | AnnouncementonRiskWarningsofDilutionofImmediateReturnsbyPrivatePlacementofA-sharesandCompensationMeasures | SecuritiesTimesB42,ShanghaiSecuritiesNews530etc. |
| 2019-30 | 30March2019 | AnnouncementonInvolvingRelated-partyTransactionsforPrivatePlacementofA-shares | SecuritiesTimesB42,ShanghaiSecuritiesNews530etc. |
2019-31
| 2019-31 | 30March2019 | ExplanationonNoNeedtoPreparationofSpecialReportonUseofPreviousRaisedFunds | SecuritiesTimesB43,ShanghaiSecuritiesNews530etc. |
| 2019-32 | 30March2019 | AnnouncementonConditionalShareSubscriptionAgreementSignedbytheCompanywiththeSubscriptor | SecuritiesTimesB43,ShanghaiSecuritiesNews530etc. |
| 2019-33 | 30March2019 | AnnouncementonParticularsaboutSupervisionMeasuresTakenbyandPunishmentsMadebySecuritiesSupervisionDepartmentsfortheFiveYears | SecuritiesTimesB43,ShanghaiSecuritiesNews530etc. |
| 2019-34 | 8April2019 | AnnouncementonVolunteerInformationDisclosureofProjectPre-concluded | SecuritiesTimesB45,ShanghaiSecuritiesNews60etc. |
| 2019-35 | 12April2019 | Announcementonthe2019FirstQuarterEarningsForecasts | SecuritiesTimesB48,ShanghaiSecuritiesNews40etc. |
| 2019-36 | 12April2019 | AnnouncementonPlannedListingtoTransferPartialSharesofKonkaE-display | SecuritiesTimesB48,ShanghaiSecuritiesNews40etc. |
| 2019-36 | 20April2019 | AnnouncementontheResolutionofthe8thMeetingofthe9thBoardofDirectors | SecuritiesTimesB64,ShanghaiSecuritiesNews84etc. |
| 2019-37 | 20April2019 | NoticeonConveningthe2018AnnualGeneralMeeting | SecuritiesTimesB64,ShanghaiSecuritiesNews84etc. |
| 2019-38 | 27April2019 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB116,ShanghaiSecuritiesNews108etc. |
| 2019-39 | 30April2019 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB233,ShanghaiSecuritiesNews616etc. |
| 2019-40 | 30April2019 | 2019FirstQuarterReport | SecuritiesTimesB233,ShanghaiSecuritiesNews616etc. |
| 2019-41 | 30April2019 | Textofthe2019FirstQuarterReport | SecuritiesTimesB233,ShanghaiSecuritiesNews616etc. |
| 2019-42 | 30April2019 | AnnouncementontheResolutionofthe9thMeetingofthe9thBoardofDirectors | SecuritiesTimesB233,ShanghaiSecuritiesNews616etc. |
| 2019-43 | 30April2019 | AnnouncementonEstablishmentofHaimenHeadquartersforEastern | SecuritiesTimesB233,ShanghaiSecuritiesNews616etc. |
ChinathroughInvestment
| ChinathroughInvestment | |||
| 2019-44 | 7May2019 | AnnouncementonInformationDisclosureofVoluntarinessofReceivingLetterofAcceptance | SecuritiesTimesB60,ShanghaiSecuritiesNews60etc. |
| 2019-45 | 7May2019 | AnnouncementonProgressofPlannedListingtoTransferSharesofKonkaE-display | SecuritiesTimesB60,ShanghaiSecuritiesNews60etc. |
| 2019-46 | 14May2019 | AnnouncementontheResolutionofthe2018AnnualGeneralMeeting | SecuritiesTimesB85,ShanghaiSecuritiesNews85etc. |
| 2019-47 | 17May2019 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB85,ShanghaiSecuritiesNews85etc. |
| 2019-48 | 21May2019 | AnnouncementontheResolutionofthe10thMeetingofthe9thBoardofDirectors | SecuritiesTimesB64,ShanghaiSecuritiesNews60etc. |
| 2019-49 | 21May2019 | AnnouncementonEstablishmentofEnvironmentalProtectionBusinessIndustrialParkthroughInvestment | SecuritiesTimesB64,ShanghaiSecuritiesNews60etc. |
| 2019-50 | 23May2019 | AnnouncementonCSRC’sAcceptanceforApplicationofPrivatePlacementofShares | SecuritiesTimesB27,ShanghaiSecuritiesNews44etc. |
| 2019-51 | 28May2019 | AnnouncementonVolunteerInformationDisclosureofPre-winningtheBidforProject | SecuritiesTimesB88,ShanghaiSecuritiesNews69etc. |
| 2019-52 | 4June2019 | AnnouncementonInformationDisclosureofVoluntarinessofReceivingLetterofAcceptance | SecuritiesTimesB71,ShanghaiSecuritiesNews48etc. |
| 2019-53 | 5June2019 | AnnouncementonResultofPrivatePlacementofCorporateBondsin2019(PhaseII) | SecuritiesTimesB44,ShanghaiSecuritiesNews44etc. |
| 2019-54 | 11June2019 | AnnouncementontheResolutionofthe11thMeetingofthe9thBoardofDirectors | SecuritiesTimesB42,ShanghaiSecuritiesNews49etc. |
| 2019-55 | 11June2019 | AnnouncementonTransferof51%EquityInterestsofChuzhouKonkaTechnology&IndustryDevelopmentCo.,Ltd.andRelated-partyTransactions | SecuritiesTimesB42,ShanghaiSecuritiesNews49etc. |
| 2019-56 | 11June | AnnouncementontheProgressof | SecuritiesTimesB42,ShanghaiSecurities |
2019
| 2019 | OfferingGuaranteestotheSubsidiary | News49etc. | |
| 2019-57 | 14June2019 | AnnouncementonCooperationAgreementSignedwithBishanGovernmentofChongqingProvince | SecuritiesTimesB4,ShanghaiSecuritiesNews120etc. |
| 2019-58 | 18June2019 | AnnouncementonListingtoTransferPartialSharesofKonkaE-display | SecuritiesTimesB61,ShanghaiSecuritiesNews33etc. |
| 2019-59 | 25June2019 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB40,ShanghaiSecuritiesNews52etc. |
| 2019-60 | 25June2019 | AnnouncementonReceiptofCSRC’sNoticeontheFirstFeedbackforReviewofAdministrativePermissionProjects | SecuritiesTimesB40,ShanghaiSecuritiesNews52etc. |
| 2019-61 | 25June2019 | AnnouncementonCompletionofRegistrationChangingProceduresforTransferofPartialEquityofKonkaE-display | SecuritiesTimesB43,ShanghaiSecuritiesNews52etc. |
| 2019-62 | 25June2019 | AnnouncementonCompletionofRegistrationChangingProceduresforTransferof51%EquityInterestsofChuzhouKonkaTechnology&IndustryDevelopmentCo.,Ltd. | SecuritiesTimesB43,ShanghaiSecuritiesNews52etc. |
| 2019-63 | 25June2019 | AnnouncementonPendingLawsuitsandArbitrationswithlargeamount | SecuritiesTimesB102,ShanghaiSecuritiesNews76etc. |
| 2019-64 | 27June2019 | AnnouncementontheImplementationofDividendPlanof2018 | SecuritiesTimesB91,ShanghaiSecuritiesNews29etc. |
| 2019-65 | 28June2019 | AnnouncementontheProgressofOfferingGuaranteestotheSubsidiary | SecuritiesTimesB128,ShanghaiSecuritiesNews36etc. |
| 2019-66 | 29June2019 | AnnouncementonWholly-ownedSubsidiary’receivingoftheGovernmentSubsidies | SecuritiesTimesB95,ShanghaiSecuritiesNews80etc. |
XVII.SignificantEventsofSubsidiaries
□Applicable√Notapplicable
PartVIShareChangesandShareholderInformation
I.ShareChanges
1.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√Notapplicable
Progressonreducingtherepurchasedsharesbymeansofcentralizedbidding:
□Applicable√NotapplicableEffectsofsharechangesonthebasicanddilutedearningspershare,equitypershareattributabletotheCompany’sordinaryshareholdersandotherfinancialindicatorsoftheprioryearandtheprioraccountingperiod,respectively:
□Applicable√NotapplicableOtherinformationthattheCompanyconsidersnecessaryorisrequiredbythesecuritiesregulatortobedisclosed:
□Applicable√Notapplicable
2.ChangesinRestrictedShares
□Applicable√NotapplicableII.IssuanceandListingofSecurities
□Applicable√NotapplicableIIIShareholdersandTheirHoldingsatPeriod-End
Unit:share
Numberofordinaryshareholders
| Numberofordinaryshareholders | 92,812 | Numberofpreferredshareholderswithresumedvotingrights(ifany)(seenote8) | 0 | ||||||||
| 5%orgreaterordinaryshareholdersortop10ordinaryshareholders | |||||||||||
| Nameofshareholder | Natureofshareholder | Shareholdingpercentage | Ordinaryshares | Increase/decreaseinReportingPeriod | Restrictedordinaryshares | Unrestrictedordinaryshares | 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 | 0 | 0 | 56,139,100 | |||||
| GUOYUANSECURITIESBROKER(HK)CO.,LTD. | Foreignlegalperson | 2.25% | 54,203,779 | 0 | 0 | 54,203,779 | |||||
| GAOLINGFUND,L.P. | Foreignlegalperson | 2.19% | 52,801,250 | 0 | 0 | 52,801,250 | |||||
ZHANGXIAOYU
| ZHANGXIAOYU | Domesticnaturalperson | 1.13% | 27,283,178 | 3,447,900 | 0 | 27,283,178 | |||||
| HONGKONGSECURITIESCLEARINGCOMPANYLTD. | Foreignlegalperson | 1.13% | 27,256,732 | 17,445,071 | 0 | 27,256,732 | |||||
| CHINAMERCHANTSSECURITIES(HK)LIMITED | State-ownedlegalperson | 0.95% | 22,879,324 | 404,200 | 0 | 22,879,324 | |||||
| NAMNGAI | Foreignnaturalperson | 0.93% | 22,453,440 | 741,300 | 0 | 22,453,440 | |||||
| NATIONALSOCIALSECURITYFUND-PORTFOLIO118 | Other | 0.88% | 21,099,537 | 4,000,000 | 0 | 21,099,537 | |||||
| Strategicinvestororgenerallegalpersonbecomingtop-10ordinaryshareholderduetorightsissue(ifany)(seenote3) | N/A | ||||||||||
| Relatedoracting-in-concertpartiesamongshareholdersabove | JialongInvestmentLimited,awholly-fundedsubsidiaryoftheCompany’sfirstmajorityshareholderOverseasChineseTownEnterprisesCo.(“OCTGroup”forshort),holds180,001,110and18,360,000ordinarysharesintheCompanyrespectivelythroughCITICSecuritiesBrokerage(HongKong)Co.,Ltd.andChinaMerchantsSecurities(HK)Limited.JialongInvestmentLimitedandOverseasChineseTownEnterprisesCo.arepartiesactinginconcert.Otherthanthat,itisunknownwhethertheothershareholdersarerelatedpartiesoracting-in-concertpartiesornot. | ||||||||||
| Top10unrestrictedordinaryshareholders | |||||||||||
| Nameofshareholder | Unrestrictedordinaryshares | Typeofshares | |||||||||
| 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 | Domesticallylistedforeign | 54,203,779 | ||||||||
stock
| stock | ||||
| GAOLINGFUND,L.P. | 52,801,250 | Domesticallylistedforeignstock | 52,801,250 | |
| ZHANGXIAOYU | 27,283,178 | RMB-denominatedordinarystock | 27,283,178 | |
| HONGKONGSECURITIESCLEARINGCOMPANYLTD. | 27,256,732 | RMB-denominatedordinarystock | 27,256,732 | |
| CHINAMERCHANTSSECURITIES(HK)LIMITED | 22,879,324 | Domesticallylistedforeignstock | 22,879,324 | |
| NAMNGAI | 22,453,440 | Domesticallylistedforeignstock | 22,453,440 | |
| NATIONALSOCIALSECURITYFUND-PORTFOLIO118 | 21,099,537 | RMB-denominatedordinarystock | 21,099,537 | |
| Relatedoracting-in-concertpartiesamongtop10unrestrictedordinaryshareholders,aswellasbetweentop10unrestrictedordinaryshareholdersandtop10ordinaryshareholders | JialongInvestmentLimited,awholly-fundedsubsidiaryoftheCompany’sfirstmajorityshareholderOverseasChineseTownEnterprisesCo.(“OCTGroup”forshort),holds180,001,110and18,360,000commonsharesintheCompanyrespectivelythroughCITICSecuritiesBrokerage(HongKong)Co.,Ltd.andChinaMerchantsSecurities(HK)Limited.JialongInvestmentLimitedandOverseasChineseTownEnterprisesCo.arepartiesactinginconcert.Otherthanthat,itisunknownwhethertheothershareholdersarerelatedpartiesoracting-in-concertpartiesornot. | |||
| Top10ordinaryshareholdersconductingsecuritiesmargintrading(ifany)(seenote4) | ZhangXiaoyuholds27,283,178A-sharesintheCompanythroughheraccountofcollateralsecuritiesformargintradinginHuaxiSecuritiesCo.,Ltd. | |||
Indicatebytickmarkwhetheranyofthetop10ordinaryshareholdersorthetop10unrestrictedordinaryshareholdersoftheCompanyconductedanypromissoryrepoduringtheReportingPeriod.
□Yea√NoNosuchcasesintheReportingPeriod.IVChangeofControllingShareholderorActualControllerinReportingPeriodChangeofthecontrollingshareholderintheReportingPeriod:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.ChangeoftheactualcontrollerintheReportingPeriod:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
PartVIIPreferredShares
□Applicable√Notapplicable
PartVIIIDirectors,Supervisors,SeniorManagementandStaffIChangeinShareholdingsofDirectors,SupervisorsandSeniorManagement
□Applicable√NotapplicableTherewasnochangeinshareholdingofDirectors,Supervisors,SeniorManagementStaffsandEmployees,fordetails,pleasereferto2018AnnualReport.IIChangeofDirectors,SupervisorsandSeniorManagement
□Applicable√NotapplicableTherewasnochangeinDirectors,Supervisors,SeniorManagementStaffsandEmployees,fordetails,pleasereferto2018AnnualReport.
PartIXCorporateBonds
DoestheCompanyhaveanycorporatebondspubliclyofferedonthestockexchange,whichwereoutstandingbeforethedateofthisReport’sapprovalorwereduebutcouldnotberedeemedinfull?Suchinformationisdisclosedasbelow:
I.BasicInformationofCorporateBonds
Name
| Name | Abbr. | Code | Releasedate | Duedate | Bondsbalance(RMB’0,000) | Couponrate | Wayofredemption |
| Privatelyplacedcorporatebondsin2019ofKonkaGroupCo.,Ltd(TrancheI)(VarietyI) | 19Konka01 | 114418 | 14January2019 | 14January2022 | 100,000 | 5.00% | Interestsshallbepaideveryyearandtheprincipalsshallberepaidwhenexpired. |
| Privatelyplacedcorporatebondsin2019ofKonkaGroupCo.,Ltd(TrancheI)(VarietyII) | 19Konka02 | 114423 | 14January2019 | 14January2022 | 150,000 | 5.00% | Interestsshallbepaideveryyearandtheprincipalsshallberepaidwhenexpired. |
| Privatelyplacedcorporatebondsin2019ofKonkaGroupCo.,Ltd(TrancheII)(VarietyI) | 19Konka03 | 114488 | 3June2019 | 3June2022 | 50,000 | 4.50% | Interestsshallbepaideveryyearandtheprincipalsshallberepaidwhenexpired. |
| Privatelyplacedcorporatebondsin2019ofKonkaGroupCo.,Ltd(TrancheII)(VarietyII) | 19Konka04 | 114489 | 3June2019 | 3June2022 | 50,000 | 4.70% | Interestsshallbepaideveryyearandtheprincipals |
shallberepaidwhenexpired.
| shallberepaidwhenexpired. | |||||||
| Privatelyplacedcorporatebondsin2019ofKonkaGroupCo.,Ltd(TrancheIII)(VarietyI) | 19Konka05 | 114523 | 22July2019 | 22July2022 | 80,000 | 4.53% | Interestsshallbepaideveryyearandtheprincipalsshallberepaidwhenexpired. |
| Privatelyplacedcorporatebondsin2019ofKonkaGroupCo.,Ltd(TrancheIII)(VarietyII) | 19Konka06 | 114524 | 22July2019 | 22July2022 | 70,000 | 4.70% | Interestsshallbepaideveryyearandtheprincipalsshallberepaidwhenexpired. |
| ListedortransferredtradingplaceoftheCompanybonds | ShenzhenStockExchange | ||||||
| Appropriatearrangementoftheinvestors | “19Konka01”,”19Konka02”,“19Konka03”,“19Konka04”,“19Konka05”and“19Konka06”wereplacedprivatelytoqualifiedinstitutionalinvestors(notexceeding200)meetingtherequirementsofManagementmethodforInvestorsEligibilityinBondsMarketofShenzhenStockExchange. | ||||||
| InterestpaymentduringtheReportingPeriod | DuringtheReportingPeriod,“19Konka01”,”19Konka02”,“19Konka03”,“19Konka04”,“19Konka05”and“19Konka06”thefirstinterestpaymentdatedidnotarrive. | ||||||
| ExecutionoftherelevantregulationsduringtheReportingPeriodsuchastheaffiliatedoptionclauseoftheissuersorinvestors,specialclausessuchastheexchangeableregulationsoftheCompanybonds(ifapplicable) | 1.Optionforissuertoadjustcouponrate;2.Put-backsoptionforinvestors;therewasnoimplementationofrelevantclauses. | ||||||
II.ListoftheBondTrusteeandtheRatingOrganization
| Bondtrustee: | |||||||
| Name | IndustrialSecuritiesCo.,Ltd | Officeaddress | Room601,No.35JinshifangStreet,Xicheng | Contactperson | PuHang,andZhangHuifang | Contactnumber | 010-50911203 |
District,Beijing
| District,Beijing | |||||
| RatingorganizationexecutedthetrackingratingofthecorporatebondsoftheReportingPeriod: | |||||
| Name | UnitedRatingsCo.,Ltd. | Officeaddress | No.2JianwaiStreet,ChaoyangDistrict,Beijing | ||
| Alternationreasons,executionprocessandinfluencesontheinvestors’interestsetc.iftherewasalternationofthebondtrusteesandthecreditratingagenciesengagedbytheCompanyduringtheReportingPeriod(ifapplicable) | No | ||||
III.ListoftheUsageoftheRaisedFundsoftheCorporateBonds
| ListoftheusageoftheraisedfundsandtheexecutionprocessoftheCompanybonds | TheCompanyhasusedtheraisedfundsanddisclosedrelatedinformationinatimely,authentic,accurateandcompletemannerstrictlyinaccordancewiththetermsintheprospectusforaforesaidbonds,relatedprovisionsandrequirementsintheMeasuresforIssuanceandTradingofCorporateBonds,CSRCReleasesNo.2GuidelinefortheSupervisionofListedCompanies-AdministrationofFundsRaisedbyListedCompaniesandApplicableSupervisionRequirements,theStockListingRulesoftheShenzhenStockExchangeandtheRulesoftheShenzhenStockExchangeforStockListingonChiNext.Ithasnotengagedinanyviolationsinrespectoftheuseandmanagementoftheraisedfunds. |
| Endingbalance(RMB’0,000) | 0 |
| Operatingsituationoftheraisedfundsspecialaccount | Theoperationwasingoodconditionwithoutanyviolationsforrelevantregulationsorcapitalsupervisionagreement |
| Whethertheusageoftheraisedfundsmetwiththeusage,usingplanandotheragreementscommittedontheprospectus | Yes |
IV.RatingSituationoftheCorporateBondsInformationInMay2019,UnitedCreditRatingsCo.,Ltd.madethetrackingratingfortheentityandrelevantbonds(including“19Konka01”and“19Konka02”)oftheCompany.TheentityoftheCompanywasratedasGradeAAinvariablyandas“Stable”foritsratingprospect;thebonds“19Konka01”and“19Konka02”issuedbyKonkaGroupCo.,Ltd.wereratedasGradeAAAinvariablyfortheircreditandas“Stable”fortheirratingprospect.TherelatedratingreporthasbeenpublishedonthewebsiteofShenzhenStockExchangeinMay2019.V.Credit-addingMechanism,RepaymentPlanandOtherRepaymentGuaranteeMeasuresoftheCorporateBondsOCTGroupprovidedtheunconditionalandirrevocablejointliabilityguaranteeinfullamountforthebonds“19Konka01”,”19Konka02”,“19Konka03”,“19Konka04”,“19Konka05”and“19Konka06”intheReportingPeriod.VI.ConveneSituationoftheBondsHoldersMeetingduringtheReportingPeriodNosuchcasesintheReportingPeriod.
VII.ListoftheDutyExecutionoftheBondsTrusteeduringtheReportingPeriodDuringtheReportingPeriod,IndustrialSecuritiesCo.,Ltd.,theCompany’sbondtrusteemanager,proactivelyperformeditstrusteeship,continuedtobeconcernedwiththeCompany’sroutineproductionandoperationandfinancialconditions,andendeavoredtomaintainthelegitimaterightsandinterestsofthebondholderstrictlyinaccordancewithrelatedlaws,regulations,theManagementMeasuresfortheIssueandTradingofCorporateBonds,theProspectusandtheAgreementfortheBondTrusteeshipManagement.VIII.TheMajorAccountingDataandtheFinancialIndicatorsoftheRecent2YearsoftheCompanyupthePeriod-end
Unit:RMB’0,000
Item
| Item | 2019 | 2018 | Changerateofthesameperiod |
| Currentratio | 109.37% | 96.33% | 13.04% |
| Asset-liabilityratio | 74.08% | 71.35% | 2.73% |
| Quickratio | 83.83% | 72.13% | 11.70% |
| ReportingPeriod | Sameperiodoflastyear | YoYChange | |
| TimesinterestearnedofEBITDA | 2.75 | 2.39 | 15.06% |
| Loanrepaymentrate | 100.00% | 100.00% | 0.00% |
| Interestcoverage | 100.00% | 100.00% | 0.00% |
MainreasonoftheaboveaccountingdataandthefinancialindicatorswiththeYoYchangeexceeded30%
□Applicable√NotapplicablePendingIX.OverdueLiabilities
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.X.ListoftheInterestPaymentofOtherBondsandDebtFinancingInstrumentsduringtheReportingPeriodNosuchcasesintheReportingPeriod.XI.ListoftheAcquiredBankCreditLines,UsageandtheRepaymentoftheBankLoansAsoftheendoftheReportingPeriod,theCompanyacquiredbankcreditlinesofRMB15,906,000,000andusedRMB9,458,000,000.Allbankloanscanberepaidonschedulewithoutanyoverduesituations.
XII.ListoftheExecutionoftheAgreementsortheCommitmentsRelatedtotheCompanyBondsRaisingSpecificationduringtheReportingPeriodDuringtheReportingPeriod,theCompanystrictlyobservedtheagreementsandperformedthecommitmentsrelatedtotheCompanyBondsraisingspecification.XIII.SignificantEventsOccurringduringtheReportingPeriodDuringtheReportingPeriod,theCompanyhastimelydisclosedcurrentannouncementsregardingsignificanteventsoccurringthewebsiteofShenzhenStockExchange(http://www.szse.cn/)andcninfo(http://www.cninfo.com.cn/new/index).AsofthedisclosuredateofthisReport,relatedsignificanteventshavenosubsequentprogressyet.XIV.WhetherthereWasGuarantoroftheCorporateBonds
√Yes□NoWhethertheguarantorofthecorporatebondswaslegalpersonorotherorganizations
PartXFinancialStatements
IIndependentAuditor’sReportAretheseinterimfinancialstatementsauditedbyanindependentauditor?
□Yes√NoTheyareunauditedbysuchanauditor.IIFinancialStatementsCurrencyunitforthefinancialstatementsandthenotesthereto:RMB
1.ConsolidatedBalanceSheetPreparedbyKonkaGroupCo.,Ltd.
30June2019
Unit:RMB
Item
| Item | 30June2019 | 31December2018 |
| Currentassets: | ||
| Monetarycapital | 5,670,267,120.55 | 4,348,144,129.53 |
| Settlementreserve | ||
| Interbankloansgranted | ||
| Tradingfinancialassets | 61,494,666.97 | |
| Financialassetsatfairvaluethroughprofitorloss | 5,464,984.92 | |
| Derivativefinancialassets | ||
| Notesreceivable | 2,002,435,052.51 | 3,329,711,954.15 |
| Accountsreceivable | 5,468,498,179.21 | 4,458,053,586.42 |
| Financingbackedbyaccountsreceivable | 107,299,247.91 | |
| Prepayments | 2,948,687,941.58 | 1,036,979,167.56 |
| Premiumsreceivable | ||
| Reinsurancereceivables | ||
| Receivablereinsurancecontractreserve | ||
| Otherreceivables | 990,966,330.41 | 410,804,180.50 |
| Including:Interestreceivable | 2,754,697.90 | 4,059,682.40 |
| Dividendsreceivable | 547,848.62 | 547,848.62 |
| Financialassetspurchasedunderresaleagreements | ||
| Inventories | 5,810,235,773.06 | 5,487,605,227.05 |
| Contractassets | ||
| Assetsclassifiedasheldforsale |
Currentportionofnon-currentassets
| Currentportionofnon-currentassets | 53,237,851.30 | 22,318,208.13 |
| Othercurrentassets | 1,766,535,360.02 | 2,744,216,141.98 |
| Totalcurrentassets | 24,879,657,523.52 | 21,843,297,580.24 |
| Non-currentassets: | ||
| Loansandadvancestocustomers | ||
| Investmentsindebtobligations | ||
| Available-for-salefinancialassets | 633,664,881.33 | |
| Investmentsinotherdebtobligations | ||
| Held-to-maturityinvestments | ||
| Long-termreceivables | 419,923,711.72 | 390,793,038.05 |
| Long-termequityinvestments | 2,846,608,296.03 | 2,637,780,825.53 |
| Investmentsinotherequityinstruments | 19,140,214.36 | |
| Othernon-currentfinancialassets | 1,548,364,400.00 | |
| Investmentproperty | 208,008,718.57 | 210,824,355.72 |
| Fixedassets | 2,228,083,633.72 | 2,410,226,495.81 |
| Constructioninprogress | 2,776,018,241.52 | 2,176,871,530.80 |
| Productivelivingassets | ||
| Oilandgasassets | ||
| Right-of-useassets | ||
| Intangibleassets | 798,320,837.28 | 737,776,686.34 |
| R&Dexpense | ||
| Goodwill | 855,691,423.75 | 855,691,423.75 |
| Long-termprepaidexpense | 101,104,614.34 | 111,223,426.77 |
| Deferredincometaxassets | 810,334,747.43 | 639,433,954.30 |
| Othernon-currentassets | 448,155,098.47 | 337,477,690.39 |
| Totalnon-currentassets | 13,059,753,937.19 | 11,141,764,308.79 |
| Totalassets | 37,939,411,460.71 | 32,985,061,889.03 |
| Currentliabilities: | ||
| Short-termborrowings | 13,163,667,813.10 | 13,884,132,931.63 |
| Borrowingsfromcentralbank | ||
| Interbankloansobtained | ||
| Tradingfinancialliabilities | ||
| Financialliabilitiesatfairvaluethroughprofitorloss | 2,459,603.25 | |
| Derivativefinancialliabilities | ||
| Notespayable | 1,109,481,840.84 | 862,330,689.47 |
| Accountspayable | 4,701,864,444.09 | 4,362,723,050.33 |
Advancesfromcustomers
| Advancesfromcustomers | 894,789,245.88 | 723,227,529.20 |
| Financialassetssoldunderrepurchaseagreements | ||
| Customerdepositsandinterbankdeposits | ||
| Payablesforactingtradingofsecurities | ||
| Payablesforunderwritingofsecurities | ||
| Payrollpayable | 218,974,626.78 | 376,506,567.71 |
| Taxespayable | 278,624,661.17 | 288,004,192.44 |
| Otherpayables | 2,367,030,105.41 | 2,024,657,277.74 |
| Including:Interestpayable | 99,998,242.67 | 27,230,631.41 |
| Dividendspayable | 240,794,540.80 | |
| Handlingchargesandcommissionspayable | ||
| Reinsurancepayables | ||
| Contractliabilities | ||
| Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale | ||
| Currentportionofnon-currentliabilities | 14,095,773.04 | 151,792,404.13 |
| Othercurrentliabilities | ||
| Totalcurrentliabilities | 22,748,528,510.31 | 22,675,834,245.90 |
| Non-currentliabilities: | ||
| Insurancecontractreserve | ||
| Long-termborrowings | 1,284,700,000.00 | 445,000,000.00 |
| Bondspayable | 3,489,910,901.50 | |
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Leaseliabilities | ||
| Long-termpayables | 223,522,236.53 | 128,374,597.41 |
| Long-termpayrollpayable | 5,670,450.62 | 8,792,614.98 |
| Provisions | 1,597,591.51 | 21,772,898.37 |
| Deferredincome | 207,308,469.89 | 112,899,128.24 |
| Deferredincometaxliabilities | 144,462,027.47 | 141,020,093.34 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 5,357,171,677.52 | 857,859,332.34 |
| Totalliabilities | 28,105,700,187.83 | 23,533,693,578.24 |
| Owners’equity: | ||
| Sharecapital | 2,407,945,408.00 | 2,407,945,408.00 |
| Otherequityinstruments | ||
| Including:Preferredshares |
Legalrepresentative:LiuFengxiChiefFinancialOfficer:LiChunleiHeadoffinancialdepartment:FengJunxiu
2.BalanceSheetoftheCompanyastheParent
Unit:RMB
Item
| Item | 30June2019 | 31December2018 |
| Currentassets: | ||
| Monetarycapital | 2,867,121,320.63 | 2,124,335,536.69 |
| Tradingfinancialassets | 61,494,666.97 | |
| Financialassetsatfairvaluethroughprofitorloss | 5,464,984.92 | |
| Derivativefinancialassets | ||
| Notesreceivable | 1,588,216,743.04 | 2,181,466,683.90 |
| Accountsreceivable | 8,266,712,064.66 | 7,427,246,429.42 |
| Financingsbackedbyaccountsreceivable | ||
| Prepayments | 1,304,083,759.55 | 1,019,335,571.49 |
| Otherreceivables | 7,868,891,877.59 | 6,667,463,126.57 |
| Including:Interestreceivable | 2,276,507.84 | 5,769,663.24 |
| Dividendsreceivable | ||
| Inventories | 301,955,343.50 | 254,225,716.41 |
| Contractassets | ||
| Assetsclassifiedasheldforsale | ||
| Currentportionofnon-currentassets | ||
| Othercurrentassets | 117,570,671.40 | 77,249,216.99 |
| Totalcurrentassets | 22,376,046,447.34 | 19,756,787,266.39 |
| Non-currentassets: | ||
| Investmentsindebtobligations |
| Perpetualbonds | ||
| Capitalreserves | 237,761,961.98 | 208,356,624.21 |
| Less:Treasurystock | ||
| Othercomprehensiveincome | -14,198,105.77 | -10,538,219.08 |
| Specificreserve | 71,737.08 | |
| Surplusreserves | 1,227,564,785.19 | 1,227,564,785.19 |
| Generalreserve | ||
| Retainedearnings | 4,380,496,417.52 | 4,271,408,192.21 |
| TotalequityattributabletoownersoftheCompanyastheparent | 8,239,642,204.00 | 8,104,736,790.53 |
| Non-controllinginterests | 1,594,069,068.88 | 1,346,631,520.26 |
| Totalowners’equity | 9,833,711,272.88 | 9,451,368,310.79 |
| Totalliabilitiesandowners’equity | 37,939,411,460.71 | 32,985,061,889.03 |
Available-for-salefinancialassets
| Available-for-salefinancialassets | 326,164,881.33 | |
| Investmentsinotherdebtobligations | ||
| Held-to-maturityinvestments | ||
| Long-termreceivables | ||
| Long-termequityinvestments | 6,719,375,166.23 | 6,182,962,034.71 |
| Investmentsinotherequityinstruments | 14,440,214.36 | |
| Othernon-currentfinancialassets | 250,230,000.00 | |
| Investmentproperty | 208,008,718.57 | 210,824,355.72 |
| Fixedassets | 451,987,170.56 | 462,721,018.30 |
| Constructioninprogress | 161,343,003.34 | 157,356,696.30 |
| Productivelivingassets | ||
| Oilandgasassets | ||
| Right-of-useassets | ||
| Intangibleassets | 80,790,288.02 | 83,593,959.11 |
| R&Dexpense | ||
| Goodwill | ||
| Long-termprepaidexpense | 70,335,791.97 | 80,388,949.97 |
| Deferredincometaxassets | 691,575,647.64 | 516,879,201.66 |
| Othernon-currentassets | 20,000,000.00 | 20,000,000.00 |
| Totalnon-currentassets | 8,668,086,000.69 | 8,040,891,097.10 |
| Totalassets | 31,044,132,448.03 | 27,797,678,363.49 |
| Currentliabilities: | ||
| Short-termborrowings | 8,723,585,987.34 | 8,179,564,987.70 |
| Tradingfinancialliabilities | ||
| Financialliabilitiesatfairvaluethroughprofitorloss | 2,459,603.25 | |
| Derivativefinancialliabilities | ||
| Notespayable | 2,067,605,961.65 | 3,513,157,955.43 |
| Accountspayable | 7,459,462,338.28 | 6,477,055,955.65 |
| Advancesfromcustomers | 314,025,058.94 | 306,650,717.69 |
| Contractliabilities | ||
| Payrollpayable | 68,511,959.60 | 146,199,496.44 |
| Taxespayable | 7,095,620.80 | 10,913,871.30 |
| Otherpayables | 2,476,885,218.67 | 2,011,494,378.65 |
| Including:Interestpayable | 97,385,685.87 | 24,158,666.48 |
| Dividendspayable | 240,794,540.80 | |
| Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale |
Currentportionofnon-currentliabilities
| Currentportionofnon-currentliabilities | 40,000,000.00 | |
| Othercurrentliabilities | ||
| Totalcurrentliabilities | 21,117,172,145.28 | 20,687,496,966.11 |
| Non-currentliabilities: | ||
| Long-termborrowings | 344,000,000.00 | 245,000,000.00 |
| Bondspayable | 3,489,910,901.50 | |
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Long-termpayables | ||
| Long-termpayrollpayable | ||
| Provisions | ||
| Deferredincome | 206,591.51 | 206,591.51 |
| Deferredincometaxliabilities | 68,697,991.43 | 75,705,476.93 |
| Othernon-currentliabilities | 751,345.42 | |
| Totalnon-currentliabilities | ||
| Totalliabilities | 3,902,815,484.44 | 321,663,413.86 |
| Owners’equity: | 25,019,987,629.72 | 21,009,160,379.97 |
| Sharecapital | ||
| Otherequityinstruments | 2,407,945,408.00 | 2,407,945,408.00 |
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | ||
| Less:Treasurystock | 114,018,066.79 | 114,018,066.79 |
| Othercomprehensiveincome | ||
| Specificreserve | -1,182,217.31 | -1,182,217.31 |
| Surplusreserves | ||
| Generalreserve | 1,227,564,785.19 | 1,227,564,785.19 |
| Retainedearnings | 2,275,798,775.64 | 3,040,171,940.85 |
| Totalowners’equity | 6,024,144,818.31 | 6,788,517,983.52 |
| Totalliabilitiesandowners’equity | 31,044,132,448.03 | 27,797,678,363.49 |
3.ConsolidatedIncomeStatement
Unit:RMB
| Item | H12019 | H12018 |
| 1.Revenue | 26,036,442,813.84 | 17,625,414,769.82 |
| Including:Operatingrevenue | 26,036,442,813.84 | 17,625,414,769.82 |
| Interestincome |
Premiumincome
| Premiumincome | ||
| Handlingchargeandcommissionincome | ||
| 2.Costsandexpenses | 26,698,772,822.16 | 17,974,204,673.13 |
| Including:Costofsales | 24,674,042,371.13 | 16,442,256,445.26 |
| Interestexpense | ||
| Handlingchargeandcommissionexpense | ||
| Surrenders | ||
| Netclaimspaid | ||
| Netamountprovidedasinsurancecontractreserve | ||
| Expenditureonpolicydividends | ||
| Reinsurancepremiumexpense | ||
| Taxesandsurcharges | 37,389,092.27 | 27,646,574.62 |
| Sellingexpense | 1,067,945,914.36 | 1,103,181,074.51 |
| Administrativeexpense | 347,924,642.43 | 227,818,772.57 |
| R&Dexpense | 157,210,338.94 | 137,008,896.76 |
| Financecosts | 414,260,463.03 | 36,292,909.41 |
| Including:Interestexpense | 529,683,836.52 | 138,646,255.45 |
| Interestincome | 118,673,531.77 | 49,719,529.94 |
| Add:Otherincome | 343,884,971.36 | 123,026,283.50 |
| Returnoninvestment(“-”forloss) | 559,161,027.92 | 531,758,571.71 |
| Including:Shareofprofitorlossofjointventuresandassociates | 8,541,274.56 | 6,075,182.59 |
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Foreignexchangegain(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | -3,005,381.67 | 59,855,412.48 |
| Creditimpairmentloss(“-”forloss) | -49,476,223.76 | |
| Assetimpairmentloss(“-”forloss) | -11,717,767.29 | -59,552,100.41 |
| Assetdisposalincome(“-”forloss) | 293,705,840.64 | 63,722,105.38 |
| 3.Operatingprofit(“-”forloss) | 470,222,458.88 | 370,020,369.35 |
| Add:Non-operatingincome | 22,269,442.09 | 27,217,492.97 |
| Less:Non-operatingexpense | 3,469,741.51 | 5,951,749.57 |
| 4.Profitbeforetax(“-”forloss) | 489,022,159.46 | 391,286,112.75 |
| Less:Incometaxexpense | 10,311,393.19 | -17,446,049.13 |
| 5.Netprofit(“-”fornetloss) | 478,710,766.27 | 408,732,161.88 |
| 5.1Byoperatingcontinuity |
5.1.1Netprofitfromcontinuingoperations(“-”fornetloss)
| 5.1.1Netprofitfromcontinuingoperations(“-”fornetloss) | ||
| 5.1.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.2Byownership | ||
| 5.2.1NetprofitattributabletoownersoftheCompanyastheparent | 352,767,020.73 | 341,793,039.03 |
| 5.2.1Netprofitattributabletonon-controllinginterests | 125,943,745.54 | 66,939,122.85 |
| 6.Othercomprehensiveincome,netoftax | -3,108,112.33 | -4,400,958.71 |
| AttributabletoownersoftheCompanyastheparent | -3,659,886.69 | -4,851,840.74 |
| 6.1Itemsthatwillnotbereclassifiedtoprofitorloss | -4,800,000.00 | |
| 6.1.1Changescausedbyremeasurementsondefinedbenefitpensionschemes | ||
| 6.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | -4,800,000.00 | |
| 6.1.4Changesinthefairvalueofthecompany’screditrisks | ||
| 6.1.5Other | ||
| 6.2Itemsthatwillbereclassifiedtoprofitorloss | 1,140,113.31 | -4,851,840.74 |
| 6.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 6.2.3Gain/Lossonchangesinthefairvalueofavailable-for-salefinancialassets | -31,342.08 | |
| 6.2.4Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 6.2.5Gain/Lossarisingfromthereclassificationofheld-to-maturityinvestmentstoavailable-for-salefinancialassets | ||
| 6.2.6Allowanceforcreditimpairmentsininvestmentsinotherdebtobligations | ||
| 6.2.7Reserveforcashflowhedges | ||
| 6.2.8Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | 1,140,113.31 | -4,820,498.66 |
| 6.2.9Other | ||
| Attributabletonon-controllinginterests | 551,774.36 | 450,882.03 |
| 7.Totalcomprehensiveincome | 475,602,653.94 | 404,331,203.17 |
| AttributabletoownersoftheCompanyastheparent | 349,107,134.04 | 336,941,198.29 |
| Attributabletonon-controllinginterests | 126,495,519.90 | 67,390,004.88 |
8.Earningspershare
| 8.Earningspershare | ||
| 8.1Basicearningspershare | 0.1465 | 0.1419 |
| 8.2Dilutedearningspershare | 0.1465 | 0.1419 |
Legalrepresentative:LiuFengxiChiefFinancialOfficer:LiChunleiHeadoffinancialdepartment:FengJunxiu
4.IncomeStatementoftheCompanyastheParent
Unit:RMB
| Item | H12019 | H12018 |
| 1.Operatingrevenue | 5,368,021,710.40 | 6,556,568,515.30 |
| Less:Costofsales | 5,264,149,493.15 | 5,958,024,932.71 |
| Taxesandsurcharges | 3,050,245.87 | 10,295,805.36 |
| Sellingexpense | 602,937,451.39 | 796,586,717.96 |
| Administrativeexpense | 116,641,903.32 | 125,914,620.99 |
| R&Dexpense | 21,884,250.47 | 101,846,025.64 |
| Financecosts | 263,815,281.41 | 146,845,768.60 |
| Including:Interestexpense | 484,646,778.75 | 288,018,824.66 |
| Interestincome | 225,398,798.03 | 113,064,005.13 |
| Add:Otherincome | 25,883,962.58 | 42,392,110.12 |
| Returnoninvestment(“-”forloss) | 185,975,738.88 | 1,159,447,278.28 |
| Including:Shareofprofitorlossofjointventuresandassociates | 3,928,528.71 | 13,240,183.30 |
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | -3,005,381.67 | 59,855,412.48 |
| Creditimpairmentloss(“-”forloss) | -6,660,947.01 | |
| Assetimpairmentloss(“-”forloss) | -3,172,282.22 | -36,873,991.62 |
| Assetdisposalincome(“-”forloss) | 200.00 | 18,949.32 |
| 2.Operatingprofit(“-”forloss) | -705,435,624.65 | 641,894,402.62 |
| Add:Non-operatingincome | 1,522,859.81 | 13,874,505.45 |
| Less:Non-operatingexpense | 957,357.54 | 5,440,364.14 |
| 3.Profitbeforetax(“-”forloss) | -704,870,122.38 | 650,328,543.93 |
| Less:Incometaxexpense | -175,447,791.41 | -86,913,171.05 |
| 4.Netprofit(“-”fornetloss) | -529,422,330.97 | 737,241,714.98 |
| 4.1Netprofitfromcontinuingoperations(“-”fornetloss) | -529,422,330.97 | 737,241,714.98 |
| 4.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.Othercomprehensiveincome,netoftax | 324,021.02 | |
| 5.1Itemsthatwillnotbereclassifiedtoprofitorloss |
5.1.1Changescausedbyremeasurementsondefinedbenefitpensionschemes
| 5.1.1Changescausedbyremeasurementsondefinedbenefitpensionschemes | ||
| 5.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | ||
| 5.1.4Changesinthefairvalueofthecompany’screditrisks | ||
| 5.1.5Other | ||
| 5.2Itemsthatwillbereclassifiedtoprofitorloss | 324,021.02 | |
| 5.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 5.2.3Gain/Lossonchangesinthefairvalueofavailable-for-salefinancialassets | ||
| 5.2.4Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 5.2.5Gain/Lossarisingfromthereclassificationofheld-to-maturityinvestmentstoavailable-for-salefinancialassets | ||
| 5.2.6Allowanceforcreditimpairmentsininvestmentsinotherdebtobligations | ||
| 5.2.7Reserveforcashflowhedges | ||
| 5.2.8Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | 324,021.02 | |
| 5.2.9Other | ||
| 6.Totalcomprehensiveincome | -529,422,330.97 | 737,565,736.00 |
| 7.Earningspershare | ||
| 7.1Basicearningspershare | ||
| 7.2Dilutedearningspershare |
5.ConsolidatedCashFlowStatement
| Item | H12019 | H12018 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 25,473,835,784.74 | 17,548,318,013.29 |
| Netincreaseincustomerdepositsandinterbankdeposits | ||
| Netincreaseinborrowingsfromcentralbank | ||
| Netincreaseinloansfromotherfinancialinstitutions | ||
| Premiumsreceivedonoriginalinsurancecontracts |
Netproceedsfromreinsurance
| Netproceedsfromreinsurance | ||
| Netincreaseindepositsandinvestmentsofpolicyholders | ||
| Interest,handlingchargesandcommissionsreceived | ||
| Netincreaseininterbankloansobtained | ||
| Netincreaseinproceedsfromrepurchasetransactions | ||
| Netproceedsforactingtradingofsecurities | ||
| Taxrebates | 507,670,463.23 | 234,219,656.63 |
| Cashgeneratedfromotheroperatingactivities | 2,148,795,820.05 | 1,477,259,476.38 |
| Subtotalofcashgeneratedfromoperatingactivities | 28,130,302,068.02 | 19,259,797,146.30 |
| Paymentsforcommoditiesandservices | 26,800,524,727.57 | 16,457,966,672.41 |
| Netincreaseinloansandadvancestocustomers | ||
| Netincreaseindepositsincentralbankandininterbankloansgranted | ||
| Paymentsforclaimsonoriginalinsurancecontracts | ||
| Netincreaseinfinancialassetsheldfortrading | ||
| Netincreaseininterbankloansgranted | ||
| Interest,handlingchargesandcommissionspaid | ||
| Policydividendspaid | ||
| Cashpaidtoandforemployees | 926,887,184.41 | 830,723,675.14 |
| Taxespaid | 453,909,943.55 | 1,461,811,434.09 |
| Cashusedinotheroperatingactivities | 1,991,936,384.26 | 2,347,454,070.52 |
| Subtotalofcashusedinoperatingactivities | 30,173,258,239.79 | 21,097,955,852.16 |
| Netcashgeneratedfrom/usedinoperatingactivities | -2,042,956,171.77 | -1,838,158,705.86 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 221,738,210.00 | 42,903,231.61 |
| Returnoninvestment | 73,227,388.55 | 72,250,837.30 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 100,441,951.60 | 1,682,604.46 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | 32,675,173.25 | 42,511,059.22 |
| Cashgeneratedfromotherinvestingactivities | 1,396,866,878.42 | 942,900,000.00 |
| Subtotalofcashgeneratedfrominvestingactivities | 1,824,949,601.82 | 1,102,247,732.59 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 642,392,906.08 | 140,086,476.23 |
| Paymentsforinvestments | 1,156,259,360.00 | 198,399,656.00 |
| Netincreaseinpledgedloansgranted | ||
| Netpaymentsfortheacquisitionofsubsidiariesand | 232,126,165.53 |
Unit:RMB
6.CashFlowStatementoftheCompanyastheParent
otherbusinessunits
| otherbusinessunits | ||
| Cashusedinotherinvestingactivities | 700,033,420.00 | 874,730,000.00 |
| Subtotalofcashusedininvestingactivities | 2,498,685,686.08 | 1,445,342,297.76 |
| Netcashgeneratedfrom/usedininvestingactivities | -673,736,084.26 | -343,094,565.17 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | 165,523,493.96 | 115,980,594.60 |
| Including:Capitalcontributionsbynon-controllingintereststosubsidiaries | 165,523,493.96 | 115,980,594.60 |
| Borrowingsobtained | 11,564,151,964.42 | 6,725,691,416.47 |
| Netproceedsfromissuanceofbonds | 3,487,750,000.00 | |
| Cashgeneratedfromotherfinancingactivities | 350,346,627.50 | 1,023,076.93 |
| Subtotalofcashgeneratedfromfinancingactivities | 15,567,772,085.88 | 6,842,695,088.00 |
| Repaymentsofborrowings | 11,054,191,049.91 | 3,377,017,426.30 |
| Paymentsforinterestanddividends | 255,889,282.00 | 562,435,220.65 |
| Including:Dividendspaidbysubsidiariestonon-controllinginterests | ||
| Cashusedinotherfinancingactivities | 264,881,928.72 | 22,612,122.48 |
| Subtotalofcashusedinfinancingactivities | 11,574,962,260.63 | 3,962,064,769.43 |
| Netcashgeneratedfrom/usedinfinancingactivities | 3,992,809,825.25 | 2,880,630,318.57 |
| 4.Effectofforeignexchangeratechangesoncashandcashequivalents | -9,021,516.41 | -35,288,115.64 |
| 5.Netincreaseincashandcashequivalents | 1,267,096,052.81 | 664,088,931.90 |
| Add:Cashandcashequivalents,beginningoftheperiod | 3,434,149,481.72 | 3,097,899,703.76 |
| 6.Cashandcashequivalents,endoftheperiod | 4,701,245,534.53 | 3,761,988,635.66 |
| Item | H12019 | H12018 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 10,761,635,579.27 | 8,900,547,132.50 |
| Taxrebates | 30,608,798.86 | 80,805,268.47 |
| Cashgeneratedfromotheroperatingactivities | 6,301,905,413.21 | 1,231,787,065.42 |
| Subtotalofcashgeneratedfromoperatingactivities | 17,094,149,791.34 | 10,213,139,466.39 |
| Paymentsforcommoditiesandservices | 8,915,821,945.44 | 6,889,739,101.21 |
| Cashpaidtoandforemployees | 376,948,025.22 | 508,124,450.52 |
| Taxespaid | 30,146,084.97 | 1,139,215,454.64 |
Unit:RMB
Cashusedinotheroperatingactivities
| Cashusedinotheroperatingactivities | 7,232,326,927.95 | 1,847,843,398.55 |
| Subtotalofcashusedinoperatingactivities | 16,555,242,983.58 | 10,384,922,404.92 |
| Netcashgeneratedfrom/usedinoperatingactivities | 538,906,807.76 | -171,782,938.53 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 105,558,710.00 | 55,600,000.00 |
| Returnoninvestment | 40,874,813.31 | 77,823,977.16 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 198,805.64 | 28,777.00 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
| Cashgeneratedfromotherinvestingactivities | 672,765,551.82 | 1,115,044,083.79 |
| Subtotalofcashgeneratedfrominvestingactivities | 819,397,880.77 | 1,248,496,837.95 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 39,488,957.39 | 54,103,982.64 |
| Paymentsforinvestments | 551,150,000.00 | 1,222,391,400.00 |
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
| Cashusedinotherinvestingactivities | 4,224,938,500.00 | 861,154,315.32 |
| Subtotalofcashusedininvestingactivities | 4,815,577,457.39 | 2,137,649,697.96 |
| Netcashgeneratedfrom/usedininvestingactivities | -3,996,179,576.62 | -889,152,860.01 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | ||
| Borrowingsobtained | 3,954,465,982.73 | 3,216,716,364.16 |
| Netproceedsfromtheissuanceofbonds | 3,487,750,000.00 | |
| Cashgeneratedfromotherfinancingactivities | ||
| Subtotalofcashgeneratedfromfinancingactivities | 7,442,215,982.73 | 3,216,716,364.16 |
| Repaymentsofborrowings | 3,053,659,242.73 | 1,207,765,069.15 |
| Paymentsforinterestanddividends | 204,582,931.37 | 552,129,671.31 |
| Cashusedinotherfinancingactivities | 8,079,215.50 | 335,984,291.92 |
| Subtotalofcashusedinfinancingactivities | 3,266,321,389.60 | 2,095,879,032.38 |
| Netcashgeneratedfrom/usedinfinancingactivities | 4,175,894,593.13 | 1,120,837,331.78 |
| 4.Effectofforeignexchangeratechangesoncashandcashequivalents | -9,427,666.78 | -75,185,223.64 |
| 5.Netincreaseincashandcashequivalents | 709,194,157.49 | -15,283,690.40 |
| Add:Cashandcashequivalents,beginningoftheperiod | 1,497,794,555.85 | 1,743,269,944.67 |
| 6.Cashandcashequivalents,endoftheperiod | 2,206,988,713.34 | 1,727,986,254.27 |
7.ConsolidatedStatementsofChangesinOwners’Equity
H12019Unit:RMB
Item
| Item | H12019 | ||||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||||
| 1.Balancesasattheendoftheprioryear | 2,407,945,408.00 | 208,356,624.21 | -10,538,219.08 | 1,227,564,785.19 | 4,271,408,192.21 | 8,104,736,790.53 | 1,346,631,520.26 | 9,451,368,310.79 | |||||||
| Add:Adjustmentsforchangedaccountingpolicies | -2,884,254.62 | -2,884,254.62 | -2,884,254.62 | ||||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | |||||||||||||||
| Adjustmentsforbusinesscombinationsundercommoncontrol | |||||||||||||||
| Otheradjustments | |||||||||||||||
| 2.Balancesasatthebeginningoftheyear | 2,407,945,408.00 | 208,356,624.21 | -10,538,219.08 | 1,227,564,785.19 | 4,268,523,937.59 | 8,101,852,535.91 | 1,346,631,520.26 | 9,448,484,056.17 | |||||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 29,405,337.77 | -3,659,886.69 | 71,737.08 | 111,972,479.93 | 137,789,668.09 | 247,437,548.62 | 385,227,216.71 | ||||||||
| 3.1Totalcomprehensiveincome | -3,659,886.69 | 352,767,020.73 | 349,107,134.04 | 126,495,519.90 | 475,602,653.94 | ||||||||||
| 3.2Capitalincreasedandreducedbyowners | 120,942,028.72 | 120,942,028.72 | |||||||||||||
| 3.2.1Ordinaryshares | 118,854,770.64 | 118,854,770.64 | |||||||||||||
increasedbyshareholders
| increasedbyshareholders | ||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | ||||||
| 3.2.4Other | 2,087,258.08 | 2,087,258.08 | ||||
| 3.3Profitdistribution | -240,794,540.80 | -240,794,540.80 | -240,794,540.80 | |||
| 3.3.1Appropriationtosurplusreserves | ||||||
| 3.3.2Appropriationtogeneralreserve | ||||||
| 3.3.3Appropriationtoowners(orshareholders) | -240,794,540.80 | -240,794,540.80 | -240,794,540.80 | |||
| 3.3.4Other | ||||||
| 3.4Transferswithinowners’equity | ||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | ||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | ||||||
| 3.4.3Lossoffsetbysurplusreserves | ||||||
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings |
3.4.5Othercomprehensiveincometransferredtoretainedearnings
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | |||||||||||||
| 3.4.6Other | |||||||||||||
| 3.5Specificreserve | |||||||||||||
| 3.5.1Increaseintheperiod | |||||||||||||
| 3.5.2Usedintheperiod | |||||||||||||
| 3.6Other | 29,405,337.77 | 71,737.08 | 29,477,074.85 | 29,477,074.85 | |||||||||
| 4.Balancesasattheendoftheperiod | 2,407,945,408.00 | 237,761,961.98 | -14,198,105.77 | 71,737.08 | 1,227,564,785.19 | 4,380,496,417.52 | 8,239,642,204.00 | 1,594,069,068.88 | 9,833,711,272.88 |
H12018Unit:RMB
| Item | H12018 | ||||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
| 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 | 7,994,145,476.61 | 204,044,330.78 | 8,198,189,807.39 | |||||||
| Add:Adjustmentsforchangedaccountingpolicies | |||||||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | |||||||||||||||
| Adjustmentsforbusinesscombinationsundercommon | |||||||||||||||
control
| control | |||||||||||||
| Otheradjustments | |||||||||||||
| 2.Balancesasatthebeginningoftheyear | 2,407,945,408.00 | 104,732,242.30 | 3,697,458.95 | 1,217,644,874.79 | 4,260,125,492.57 | 7,994,145,476.61 | 204,044,330.78 | 8,198,189,807.39 | |||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -4,851,840.74 | -48,294,095.61 | -53,145,936.35 | 482,418,710.00 | 429,272,773.65 | ||||||||
| 3.1Totalcomprehensiveincome | -4,851,840.74 | 341,793,039.03 | 336,941,198.29 | 67,390,004.88 | 404,331,203.17 | ||||||||
| 3.2Capitalincreasedandreducedbyowners | 415,028,705.12 | 415,028,705.12 | |||||||||||
| 3.2.1Ordinarysharesincreasedbyshareholders | 415,028,705.12 | 415,028,705.12 | |||||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | |||||||||||||
| 3.2.4Other | |||||||||||||
| 3.3Profitdistribution | -390,087,134.64 | -390,087,134.64 | -390,087,134.64 | ||||||||||
| 3.3.1Appropriationtosurplusreserves | |||||||||||||
| 3.3.2Appropriationtogeneralreserve | |||||||||||||
| 3.3.3Appropriationtoowners(orshareholders) | -390,087,134.64 | -390,087,134.64 | -390,087,134.64 | ||||||||||
| 3.3.4Other | |||||||||||||
| 3.4Transferswithinowners’equity |
3.4.1Increaseincapital(orsharecapital)fromcapitalreserves
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | |||||||||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||||||||||
| 3.4.3Lossoffsetbysurplusreserves | |||||||||||||
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings | |||||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | |||||||||||||
| 3.4.6Other | |||||||||||||
| 3.5Specificreserve | |||||||||||||
| 3.5.1Increaseintheperiod | |||||||||||||
| 3.5.2Usedintheperiod | |||||||||||||
| 3.6Other | |||||||||||||
| 4.Balancesasattheendoftheperiod | 2,407,945,408.00 | 104,732,242.30 | -1,154,381.79 | 1,217,644,874.79 | 4,211,831,396.96 | 7,940,999,540.26 | 686,463,040.78 | 8,627,462,581.04 |
8.StatementsofChangesinOwners’EquityoftheCompanyastheParent
H12019Unit:RMB
Item
| Item | H12019 | |||||||||||
| 股本 | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | ||||||||||
| 1.Balancesasattheendoftheprioryear | 2,407,945,408.00 | 114,018,066.79 | -1,182,217.31 | 1,227,564,785.19 | 3,040,171,940.85 | 6,788,517,983.52 | ||||||
| Add:Adjustmentsforchangedaccountingpolicies | -2,127,505.16 | -2,127,505.16 | ||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | ||||||||||||
| Otheradjustments | 7,971,211.72 | 7,971,211.72 | ||||||||||
| 2.Balancesasatthebeginningoftheyear | 2,407,945,408.00 | 114,018,066.79 | -1,182,217.31 | 1,227,564,785.19 | 3,046,015,647.41 | 6,794,361,690.08 | ||||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -770,216,871.77 | -770,216,871.77 | ||||||||||
| 3.1Totalcomprehensiveincome | -529,422,330.97 | -529,422,330.97 | ||||||||||
| 3.2Capitalincreasedandreducedbyowners | ||||||||||||
| 3.2.1Ordinarysharesincreasedbyshareholders | ||||||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | ||||||||||||
3.2.4Other
| 3.2.4Other | ||||||||||
| 3.3Profitdistribution | -240,794,540.80 | -240,794,540.80 | ||||||||
| 3.3.1Appropriationtosurplusreserves | ||||||||||
| 3.3.2Appropriationtoowners(orshareholders) | -240,794,540.80 | -240,794,540.80 | ||||||||
| 3.3.3Other | ||||||||||
| 3.4Transferswithinowners’equity | ||||||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | ||||||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | ||||||||||
| 3.4.3Lossoffsetbysurplusreserves | ||||||||||
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings | ||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | ||||||||||
| 3.4.6Other | ||||||||||
| 3.5Specificreserve | ||||||||||
| 3.5.1Increaseintheperiod | ||||||||||
| 3.5.2Usedintheperiod | ||||||||||
| 3.6Other | ||||||||||
| 4.Balancesasattheendoftheperiod | 2,407,945,408.00 | 114,018,066.79 | -1,182,217.31 | 1,227,564,785.19 | 2,275,798,775.64 | 6,024,144,818.31 |
H12018Unit:RMB
Item
| Item | H12018 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | 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 | ||||||||||||
| 2.Balancesasatthebeginningoftheyear | 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 | ||||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 324,021.02 | 347,154,580.34 | 347,478,601.36 | |||||||||
| 3.1Totalcomprehensiveincome | 324,021.02 | 737,241,714.98 | 737,565,736.00 | |||||||||
| 3.2Capitalincreasedandreducedbyowners | ||||||||||||
| 3.2.1Ordinarysharesincreasedbyshareholders | ||||||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | ||||||||||||
| 3.2.4Other | ||||||||||||
| 3.3Profitdistribution | -390,087,134.64 | -390,087,134.64 | ||||||||||
3.3.1Appropriationtosurplusreserves
| 3.3.1Appropriationtosurplusreserves | ||||||||||
| 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 | ||||||||||
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings | ||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | ||||||||||
| 3.4.6Other | ||||||||||
| 3.5Specificreserve | ||||||||||
| 3.5.1Increaseintheperiod | ||||||||||
| 3.5.2Usedintheperiod | ||||||||||
| 3.6Other | ||||||||||
| 4.Balancesasattheendoftheperiod | 2,407,945,408.00 | 111,525,163.22 | -1,646,283.60 | 1,217,644,874.79 | 3,674,782,256.90 | 7,410,251,419.31 |
KonkaGroupCo.,Ltd.NotestoFinancialStatementsforH12019(Allamountsareexpressed,unlessotherwisestated,inRenminbi(RMB).)I.CompanyProfile
1.EstablishmentKonkaGroupCo.,Ltd.(hereinafterreferredtoas“Company”or“theCompany”),isajoint-stocklimitedcompanyreorganizedfromtheformerShenzhenKonkaElectronicCo.,Ltd.inAugust1991uponapprovalofthePeople’sGovernmentofShenzhenMunicipality,andhasitsordinaryshares(A-shareandB-share)listedonShenzhenStockExchangewithpriorconsentfromthePeople’sBankofChinaShenzhenSpecialEconomicZoneBranch.On29August1995,theCompanywasrenamedto“KonkaGroupCo.,Ltd.”(Credibilitycode:
914403006188155783)withitsmainbusinesselectronicindustry.AndnowtheheadquarterslocatesinNo.28ofNo.12ofKejiSouthRd.,Science&TechnologyPark,YuehaiStreet,NanshanDistrict,Shenzhen,GuangdongProvince.
2.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—HongKongGanghuaElectronicCompanyCo.,Ltd.areconvertedintoforeignlegalperson’sshares,and10,000,000B-sharesareissuedadditionally.On10April1993,theProposalonProfitDistributionandDividendPayout1992wasadoptedatthesecondgeneralmeetingofshareholdersoftheCompany.WithapprovalfromtheSZBFNo.2[1993]documentasissuedbyShenzhenSecuritiesRegulatoryOffice,theCompanybegantoperformdividendpolicyforFY1992asof30April1993:distributing
RMB0.90incashplus3.5bonussharesforevery10sharestoallshareholders.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.Forsuchreasonsas
continuedweaknessinB-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
ExtraordinaryGeneralMeetingandtherevisedarticlesoftheCompany,theCompanyappliedtoincreasetheregisteredcapitalofRMB1,203,972,704.00,whichtotallyturnedintocapitalreservewiththealteredregisteredcapitalofRMB2,407,945,408.00andmanagedtheindustrialandcommercialalternationregistrationon28January2016withthealteredsharecapitalof2,407,945,408.00shares.
3.Approvedbusinessscope:researchanddevelopment,productionandoperationofsuch
intelligenthouseholdelectricappliancesastelevisions,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,includingmanagementandmaintenanceofsystemapplication,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,soilpollutioncontroland
remediation;production(excludingmining)andsalesofnon-metallicmineralproductsandmaterials;development,productionandsalesofspecificmaterialsforsemiconductorintegratedcircuitsandcomponent;assembly,productionandsalesofintegrateddeviceelectronics,design,R&D,manufacturing,testing,packagingandsalesofsemiconductorintegratedcircuits,andsales,integratedcircuitproductsandrelatedtechnicalservices,technologydevelopment,transfer,importandexportinthefieldofsemiconductorintegratedcircuittechnology.
4.TheCompanyanditssubsidiariesaremainlyengagedintheproductionandsalesofcolourTVs,whitegoods,mobilephones,etc.;businessesregardingtrade,industryandscienceandtechnology,environmentalprotection,commercialfactoring,andetc.
5.ThefinancialstatementscontainedhereinhavebeenapprovedforissuebytheBoardofDirectorsoftheCompanyon5August2019.Therewere123subsidiariesincludedintheconsolidationscopeof2019oftheCompany,andpleaserefertotheNotesVIII.“Equitiesamongotherentities”fordetails.Therewere15subsidiariesincreasedand6decreasedintheconsolidationscopeoftheReportingPeriodoverthelastperiodoftheCompany,fordetails,seetheNotesVII.“Changesoftheconsolidationscope”.
6.AchecklistofcorporatenamesandtheirabbreviationsmentionedinthisReport
Corporatename
| Corporatename | Abbreviation |
| AnhuiKonkaElectricalApplianceTechnologyCo.,Ltd. | AnhuiElectricalAppliance |
| AnhuiKonkaElectronicCo.,Ltd. | AnhuiKonka |
| AnhuiKonkaTongchuangElectricalAppliancesCo.,Ltd. | AnhuiTongchuang |
| AnhuiKonkaZhilianE-CommerceCo.,Ltd. | AnhuiZhilian |
| BeijingKonkaElectronicCo.,Ltd. | BeijingKonkaElectronic |
| BoluoKonkaPrecisionTechnologyCo.,Ltd. | BoluoKonkaPrecision |
| BoluoKonkaPCBCo.,Ltd. | BoluoKonka |
| SichuanKonkaIndustrialNewTownDevelopmentCo.,Ltd. | IndustrialNewTown |
| ChengduAnrenKonkaCulturalandCreativeIncubatorManagementCo.,Ltd. | ChengduAnren |
| ChengduKonkaIncubatorManagementCo.,Ltd. | ChengduKonkaIncubator |
| ChuzhouKangyongHealthIndustryDevelopmentCo.,Ltd. | ChuzhouKangyong |
| ChuzhouKonkaTechnology&IndustryDevelopmentCo.,Ltd. | ChuzhouKonkaTID |
| NanjingChuanghuiSmartTechnologyCo.,Ltd. | ChuanghuiSmart |
| ShenzhenKonkaElectronicsTechnologyCo.,Ltd. | ElectronicsTechnology |
| DongguanKonkaPackingMaterialsCo.,Ltd. | DongguanPacking |
| DongguanKonkaElectronicCo.,Ltd. | DongguanKonka |
Corporatename
| Corporatename | Abbreviation |
| DongguanKonkaInvestmentCo.,Ltd. | DongguanKonkaInvestment |
| HainanKonkaTechnologyIndustryDevelopmentCo.,Ltd. | HainanTechnology |
| HefeiKONSEMIStorageTechnologyCo.,Ltd. | HefeiKONSEMI |
| JialiInternational(HongKong)Limited | JialiInternational |
| JiaxinTechnologyCo.,Ltd. | JiaxinTechnology |
| JiangxiKonkaNewMaterialTechnologyCo.,Ltd. | JiangxiKonka |
| KonkaElectricalAppliancesInternationalTradingCo.,Ltd. | KonkaElectricalAppliancesInternationalTrading |
| KonkaElectricalAppliancesInvestment&DevelopmentCo.,Ltd. | KonkaElectricalAppliancesInvestment |
| KonkaFactoring(Shenzhen)Co.,Ltd. | KonkaFactoring |
| HainanKonkaMaterialTechnologyCo.,Ltd. | KonkaMaterial |
| KonkaVenturesDevelopment(Shenzhen)Co.,Ltd. | KonkaVentures |
| GuiyangKonkaEnterpriseServiceCo.,Ltd. | KonkaEnterpriseService |
| ShenzhenKonkaElectricalAppliancesCo.,Ltd. | KonkaElectricalAppliances |
| KonkaHuanjia(Dalian)EnvironmentalTechnologyCo.,Ltd. | KonkaHuanjia |
| KonkaHuanjia(Henan)EnvironmentalTechnologyCo.,Ltd. | KonkaHuanjia(Henan) |
| ShenzhenKonkaUnifortuneTechnologyCo.,Ltd. | KonkaUnifortune |
| GuizhouKonkaEnterpriseManagementServiceCo.,Ltd. | KonkaEnterpriseManagement |
| KonkaRongheIndustrialTechnology(Foshan)Co.,Ltd. | KonkaRonghe |
| ShenzhenKonkaEco-DevelopmentInvestmentCo.,Ltd. | KonkaEco-Development |
| ShenzhenKonkaSuyuanInvestmentIndustrialCo.,Ltd. | KonkaSuyuan |
| KonkaSuiyongInvestment(Shenzhen)Co.,Ltd. | KonkaSuiyong |
| SichuanKangjiatongTechnologyCo.,Ltd. | Kangjiatong |
| ShenzhenKonkaInvestmentHoldingCo.,Ltd. | KonkaInvestment |
| ShenzhenKonkaE-displayCo.,Ltd. | KonkaE-display |
| KonkaSmartTechLimited | KonkaSmartTech |
| ShenzhenKonkaCapitalEquityInvestmentManagementCo.,Ltd. | KonkaCapital |
| KonkaFinancialLeasing(Tianjin)Co.,Ltd. | KonkaLeasing |
| Kangjietong(HongKong)Limited | Kangjietong |
| ShenzhenKangqiaoEasyChainTechnologyCo.,Ltd. | KangqiaoEasyChain |
| ShenzhenKangquanEnterpriseManagementConsultingCo.,Ltd. | KangquanEnterprise |
| AnhuiKangzhiTradeCo.,Ltd. | KangzhiTrade |
| ShenzhenKonkaCross-BorderTechnologicalInnovationServiceCo.,Ltd. | Cross-BorderTechnologicalInnovation |
| MudanjiangArcticOceanAppliancesCo.,Ltd. | MudanjiangAppliances |
| JiangxiGoldenPhoenixNanoCrystallizedGlassCo.,Ltd. | NanoCrystallizedGlass |
Corporatename
| Corporatename | Abbreviation |
| NanjingKonkaSmartTechnologyCo.,Ltd. | NanjingKonka |
| Konka(Europe)Co.,Ltd. | KonkaEurope |
| ShenzhenKonkaElectronicFittingsTechnologyCo.,Ltd. | FittingsTechnology |
| ShenzhenKonkaPengrunTechnology&IndustryCo.,Ltd. | KonkaPengrun |
| XiamenDalongTradingCo.,Ltd. | XiamenDalong |
| ShandongKangxinIndustrialDevelopmentCo.,Ltd. | ShandongKangxin |
| ShenzhenKonkaCommercialSystemTechnologyCo.,Ltd. | CommercialSystemTechnology |
| ShanghaiKonkaIndustrialCo.,Ltd. | ShanghaiKonka |
| ShanghaiXinfengZhuoqunPCBCo.,Ltd. | ShanghaiXinfeng |
| ShenzhenHuananInvestmentPartnership(LimitedPartnership) | ShenzhenHuanan |
| ShenzhenKONSEMICo.,Ltd. | ShenzhenKONSEMI |
| ShenzhenMeixinSemiconductorTechnologyCo.,Ltd. | ShenzhenMeixin |
| ShenzhenNianhuaEnterpriseManagementCo.,Ltd. | ShenzhenNianhua |
| ShenzhenKonkaLifeElectricApplianceCo.,Ltd. | LifeElectricAppliance |
| ShenzhenKonkaShengxingIndustrialCo.,Ltd. | ShengxingIndustrial |
| SichuanKonkaSmartTerminalTechnologyCo.,Ltd | SichuanKonka |
| SuiningKonkaElectronicTechnologicalInnovationCo.,Ltd. | SuiningElectronicTechnologicalInnovation |
| SuiningKonkaIndustrialParkDevelopmentCo.,Ltd. | SuiningKonkaIndustrialPark |
| ShenzhenKonkaTelecommunicationsTechnologyCo.,Ltd. | TelecommunicationTechnology |
| ShenzhenWankaidaScienceandTechnologyCo.,Ltd. | Wankaida |
| HongKongKonkaLimited | HongKongKonka |
| KonkaMobilityCo.,Limited | KonkaMobility |
| ShenzhenXiaojiaTechnologyCo.,Ltd. | XiaojiaTechnology |
| HenanFrestecElectricalAppliancesCo.,Ltd. | FrestecElectricalAppliances |
| HenanFrestecHouseholdAppliancesCo.,Ltd. | FrestecHouseholdAppliances |
| HenanFrestecRefrigerationApplianceCo.,Ltd. | FrestecRefrigeration |
| JiangxiXinfengMicrocrystallineJadeCo.,Ltd. | XinfengMicrocrystalline |
| GuangDongXingDaHongYeElectronicCo.,Ltd. | XingDaHongYe |
| YantaiKonkaHealthcareEnterpriseServiceCo.,Ltd. | YantaiKonka |
| YantaiKonkaIndustrialCo.,Ltd. | YantaiKonkaIndustrial |
| YantaiKangjinTechnologyDevelopmentCo.,Ltd. | YantaiKangjin |
| ShenzhenE-displayServiceCo.,Ltd. | E-displayService |
| YibinKonkaTechnologyParkOperationCo.,Ltd. | YibinKonkaTechnologyPark |
| YibinKonkaIncubatorManagementCo.,Ltd. | YibinKonkaIncubator |
Corporatename
| Corporatename | Abbreviation |
| ShenzhenKonkaMobileInterconnectionTechnologyCo.,Ltd. | MobileInterconnection |
| HefeiYiheElectronicCo.,Ltd. | YiheElectronic |
| ShenzhenKonkaYifangTechnologyCo.,Ltd. | YifangTechnology |
| E3info(Hainan)TechnologyCo.,Ltd. | E3info |
| ShenzhenE2infoNetworkTechnologyCo.,Ltd. | E2info |
| ShandongEconTechnologyCo.,Ltd.(inclusiveofitsconsolidatedsubsidiaries) | EconTechnology |
| YoushiKangrongCultureCommunicationCo.,Ltd. | YoushiKangrong |
| ShenzhenYouzhihuiTechnologyCo.,Ltd. | Youzhihui |
| YibinKonkaSmartTechnologyCo.,Ltd. | SmartTechnology |
| ChainKingdomMemoryTechnologiesCo.,Limited | ChainKingdomMemoryTechnologies |
| ChainKingdomMemoryTechnologies(Shenzhen)Co.,Ltd. | ChainKingdomMemoryTechnologies(Shenzhen) |
| ChongqingKonkaTechnologyDevelopmentCo.,Ltd. | ChongqingKonka |
II.BasisforthePreparationofFinancialStatementsWiththegoing-concernassumptionasthebasisandbasedontransactionsandothereventsthatactuallyoccurred,theCompanypreparedfinancialstatementsinaccordancewithTheAccountingStandardsforBusinessEnterprises—BasicStandardissuedbytheMinistryofFinancewithDecreeNo.33andrevisedwithDecreeNo.76,the42specificaccountingstandards,theApplicationGuidanceofAccountingStandardsforBusinessEnterprises,theInterpretationofAccountingStandardsforBusinessEnterprisesandotherregulationsissuedandrevisedfrom15February2006onwards(hereinafterjointlyreferredtoastheAccountingStandardsforBusinessEnterprises,ChinaAccountingStandardsor“CAS”),aswellastheRulesforPreparationConventionofDisclosureofPublicOfferingCompaniesNo.15–GeneralRegulationsforFinancialReporting(revisedin2014)byChinaSecuritiesRegulatoryCommission.InaccordancewithrelevantprovisionsoftheAccountingStandardsforBusinessEnterprises,theCompanyadoptedtheaccrualbasisinaccounting.Exceptforsomefinancialinstrumentsandinvestmentproperties,thefinancialstatementsarebasedonhistoriccoststomeasure.Non-currentassetsheldforsaleispricedbytheloweramountbetweentheamountsthatfairvalueminusestimatedamountandtheoriginalbookvaluethatmeetstheheldforsalerequirement.Whereimpairmentoccurredonanasset,animpairmentreservewaswithdrawnaccordinglypursuanttorelevantrequirements.III.StatementofCompliancewiththeAccountingStandardsforBusinessEnterprises
ThefinancialstatementspreparedbytheCompanyareincompliancewithincompliancewiththeAccountingStandardsforBusinessEnterprises,whichfactuallyandcompletelypresenttheCompany’sfinancialpositionsasat30June2019,businessresultsandcashflowsforH1of2019,andotherrelevantinformation.Inaddition,theCompany’sandtheCompany’sfinancialstatementsmeettherequirementsofdisclosingfinancialstatementsandnotestheretostatedintheRulesforPreparationConventionofDisclosureofPublicOfferingCompaniesNo.15–GeneralRegulationsforFinancialReporting(revisedin2014)byChinaSecuritiesRegulatoryCommission.IV.ImportantAccountingPoliciesandEstimationsTheCompanyanditssubsidiariesaremainlyengagedintheproductionandsalesofcolourTVs,whitegoods,mobilephones,etc.;businessesregardingtrade,industryandsicienceandtechnology,environmentalprotection,commercialfactoring,financinglease,etc.TheCompanyanditssubsidiariesformulatedcertainspecificaccountingpoliciesandaccountingestimatesaccordingtotheactualproductionandoperationcharacteristicsandtheregulationsoftherelevantASBEonthetransactionsandeventsoftherevenuesrecognition,therecognitionofcompletionofconstructioncontract,andresearchdevelopmentexpenditure.Forthedetails,pleaserefertoeachdescriptionofNotesIV.23“Revenues”.Forthenotesofthesignificantaccountingjudgmentandestimationsmadebythemanagementlayer,pleaserefertoNotesIV.29“Significantaccountingjudgmentandestimations”.
1.FiscalPeriodTheCompany’sfiscalperiodsincludefiscalyearsandfiscalperiodsshorterthanacompletefiscalyear.TheCompany’sfiscalyearstartsonJanuary1andendsonDecember31ofeveryyearaccordingtotheGregoriancalendar.
2.OperatingCycleAnormaloperatingcyclereferstoaperiodfromtheCompanypurchasingassetsforprocessingtorealizingcashorcashequivalents.AnoperatingcyclefortheCompanyis12months,whichisalsotheclassificationcriterionfortheliquidityofitsassetsandliabilities.
3.RecordingCurrencyRenminbiisthedominantcurrencyusedintheeconomiccircumstanceswheretheCompanyanditsdomesticsubsidiariesareinvolved.Therefore,theCompanyanditsdomesticsubsidiariesuseRenminbiastheirbookkeepingbasecurrency.TheoverseassubsidiariesoftheCompanyshouldconfirmtheHKDollarandEuroaastheirrecordingcurrencyaccordingitsmajoreconomicenvironmentoftheiroperatingaddress.AndtheCompanyadoptedRenminbiasthebookkeepingbasecurrencywhenpreparingthefinancialstatementsforthe
ReportingYear.
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.Iftheadditionalpaid-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.Wherethecombinationcostsarelessthanthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquiree,theacquirershallre-examinethemeasurementofthefairvaluesoftheidentifiableassets,liabilitiesandcontingentliabilitiesitobtainsfromtheacquireeaswellasthecombinationcosts.If,afterthere-examination,thecombinationcostsarestilllessthanthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquiree,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”,seethepreviousparagraphsdescribedinthissectionandNote
IV,13“longtermequityinvestment”andconductaccountingtreatment,thosenotbelongtothe“packagedeal”distinguishbetweentheindividualfinancialstatementsandtheconsolidatedfinancialstatementsandconductrelevantaccountingtreatment.Intheindividualfinancialstatements,thesumofthebookvalueandnewinvestmentcostoftheCompanyholdsintheacquireebeforetheacquiringdateshallbeconsideredasinitialcostoftheinvestment.OtherrelatedcomprehensivegainsinrelationtotheequityintereststhattheCompanyholdsintheacquireebeforetheacquiringdateshallbetreatedonthesamebasisastheacquireedirectlydisposestherelatedassetsorliabilitieswhendisposingtheinvestment(thatis,exceptforthecorrespondingshareinthechangesinthenetliabilitiesorassetswithadefinedbenefitplanmeasuredattheequitymethodarisingfromtheacquiree’sre-measurement,theothersshallbetransferredintocurrentinvestmentgains).IntheCompany’sconsolidatedfinancialstatements,asfortheequityintereststhattheCompanyholdsintheacquireebeforetheacquiringdate,theyshallbere-measuredaccordingtotheirfairvaluesattheacquiringdate;thepositivedifferencebetweentheirfairvaluesandcarryingamountsshallberecordedintotheinvestmentgainsfortheperiodincludingtheacquiringdate.OtherrelatedcomprehensivegainsinrelationtotheequityintereststhattheCompanyholdsintheacquireebeforetheacquiringdateshallbetreatedonthesamebasisastheacquireedirectlydisposestherelatedassetsorliabilitieswhendisposingtheinvestment(thatis,exceptforthecorrespondingshareinthechangesinthenetliabilitiesorassetswithadefinedbenefitplanmeasuredattheequitymethodarisingfromtheacquiree’sre-measurement,theothersshallbetransferredintocurrentinvestmentgainsontheacquiringdate).
5.MethodsforPreparingConsolidatedFinancialStatements
(1)PrinciplefordeterminingtheconsolidationscopeTheconsolidationscopeforfinancialstatementsisdeterminedonthebasisofcontrol.Theterm“control”isthepoweroftheCompanyuponaninvestee,withwhichitcantakepartinrelevantactivitiesoftheinvesteetoobtainvariablereturnsandisabletoinfluencetheamountofreturns.ThescopeofconsolidationincludestheCompanyanditsallsubsidiaries.AsubsidiaryisanenterpriseorentitycontrolledbytheCompany.Onceanychangesintherelevantfactsorsituationsresultedinanychangesintheelementsinvolvedintheaforesaiddefinitionof“control”,theCompanyshallcarryoutareassessment.
(2)MethodsforpreparingtheconsolidatedfinancialstatementsSubsidiariesarefullyconsolidatedfromthedateonwhichtheCompanyobtainscontrolontheirnetassetsandoperationdecision-makingandarede-consolidatedfromthedatewhen
suchcontrolceases.Asforadisposedsubsidiary,itsoperatingresultsandcashflowsbeforethedisposaldatehasbeenappropriatelyincludedintheconsolidatedincomestatementandcashflowstatement;andasforsubsidiariesdisposedinthecurrentperiod,theopeningitemsintheconsolidatedbalancesheetarenotadjusted.Forasubsidiaryacquiredinabusinesscombinationnotunderthesamecontrol,itsoperatingresultsandcashflowsaftertheacquiringdatehavebeenappropriatelyincludedintheconsolidatedincomestatementandcashflowstatement,andtheopeningitemsandcomparativeitemsintheconsolidatedfinancialstatementsarenotadjusted.Forasubsidiaryacquiredinabusinesscombinationunderthesamecontrolandthemergedpartyinaconsolidationbymerger,itsoperatingresultsandcashflowsfromthebeginningoftheReportingPeriodofthecombinationtothecombinationdatehavebeenappropriatelyincludedintheconsolidatedincomestatementandcashflowstatement,andthecomparativeitemsintheconsolidatedfinancialstatementsareadjustedatthesametime.ThefinancialstatementsofsubsidiariesareadjustedinaccordancewiththeaccountingpoliciesandaccountingperiodoftheCompanyduringthepreparationoftheconsolidatedfinancialstatements,wheretheaccountingpoliciesandtheaccountingperiodsareinconsistentbetweentheCompanyandsubsidiaries.Forasubsidiaryacquiredfromabusinesscombinationnotunderthesamecontrol,theindividualfinancialstatementsofthesubsidiaryareadjustedbasedonthefairvalueoftheidentifiablenetassetsattheacquisitiondate.Allsignificantinter-Companybalances,transactionsandunrealizedprofitsareoffsetintheconsolidatedfinancialstatements.Theportionofasubsidiary’sshareholders’equityandtheportionofasubsidiary’snetprofitsandlossesfortheperiodnotheldbytheCompanyarerecognizedasminorityinterestsandminorityshareholderprofitsandlossesrespectivelyandpresentedseparatelyundershareholders’equityandnetprofitsintheconsolidationfinancialstatements.Theportionofasubsidiary’snetprofitsandlossesfortheperiodthatbelongtominorityinterestsispresentedastheitemof“minorityshareholderprofitsandlosses”underthebiggeritemofnetprofitsintheconsolidatedfinancialstatements.Wherethelossofasubsidiarysharedbyminorityshareholdersexceedstheportionenjoyedbyminorityshareholdersinthesubsidiary’sopeningowners’equity,minorityinterestsareoffset.WheretheCompanylossescontrolonitsoriginalsubsidiariesduetodisposalofsomeequityinvestmentsorotherreasons,theresidualequityinterestsarere-measuredaccordingtothefairvalueonthedatewhensuchcontrolceases.Thesummationoftheconsiderationobtained
fromthedisposalofequityinterestsandthefairvalueoftheresidualequityinterests,minustheportionintheoriginalsubsidiary’snetassetsmeasuredonacontinuousbasisfromtheacquisitiondatethatisenjoyablebytheCompanyaccordingtotheoriginalshareholdingpercentageinthesubsidiary,isrecordedininvestmentgainsfortheperiodwhentheCompany’scontrolonthesubsidiaryceases.Othercomprehensiveincomesinrelationtotheequityinvestmentintheoriginalsubsidiaryaretreatedonthesameaccountingbasisastheacquireedirectlydisposestherelevantassetsorliabilities(thatis,exceptforthechangesinthenetliabilitiesorassetswithadefinedbenefitplanresultedfromre-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“WheretheCompanylossescontrolonitsoriginalsubsidiariesduetodisposalofsomeequityinvestmentsorotherreasons”(Seethefrontparagraph)relevanttransactionsoftheCompanylossescontrolonitssubsidiariesduetodisposalofequityinvestmentsbelongingtoapackagedeal,consideredasatransactionandconductaccountingtreatment.However,Beforelosingcontrol,everydisposalcostandcorrespondingnetassetsbalanceofsubsidiaryofdisposalinvestmentareconfirmedasothercomprehensiveincomeinconsolidated
financialstatements,whichtogethertransferredintothecurrentprofitsandlossesinthelossofcontrol,whentheCompanylosingcontrolonitssubsidiary.
6.ClassificationofJointArrangementsandAccountingTreatmentofJointOperationsAjointarrangementreferstoanarrangementjointlycontrolledbytwoparticipantsorabove.TheCompanyclassifiesjointarrangementsintojointoperationsandjointventuresaccordingtoitsrightsanddutiesinthejointarrangements.AjointoperationreferstoajointarrangementwheretheCompanyenjoysassetsandhastobearliabilitiesrelatedtothearrangement.AjointventurereferstoajointarrangementwheretheCompanyisonlyentitledtothenetassetsofthearrangement.TheCompany’sinvestmentsinjointventuresaremeasuredattheequitymethodaccordingtotheaccountingpoliciesmentionedinNoteIV.13(2)②“Long-termequityinvestmentsmeasuredattheequitymethod”.Forajointoperation,theCompany,asajointoperator,recognizestheassetsandliabilitiesthatitholdsandbearsinthejointoperation,andrecognizesthejointly-heldassetsandjointly-borneliabilitiesaccordingtotheCompany’sstakeinthejointoperation;recognizestheincomefromsaleoftheCompany’sshareintheoutputofthejointoperation;recognizestheincomefromsaleofthejointoperation’soutputsaccordingtotheCompany’sstakeinit;andrecognizestheexpensesolelyincurredtotheCompanyandtheexpenseincurredtothejointoperationaccordingtotheCompany’sstakeinit.WhentheCompany,asajointoperator,transfersorsellsassets(theassetsnotconstitutingbusiness,thesamebelow)tothejointoperation,orpurchasesassetsfromthejointoperation,beforetheassetsaresoldtoathirdparty,theCompanyonlyrecognizestheshareoftheotherjointoperatorsinthegainsandlossesarisingfromthesale.WhereimpairmentoccurstotheassetsasprescribedinTheAccountingStandardNo.8forBusinessEnterprises—AssetImpairment,theCompanyshallfullyrecognizesthelossforatransferorsaleofassetstoajointoperation;andshallrecognizethelossaccordingtoitsstakeinthejointoperationforapurchaseofassetsfromthejointoperation.
7.RecognitionStandardforCashandCashEquivalentsIntheCompany’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-monetaryitemmeasuredatthehistoricalcostsshallstillbetranslatedatthespotexchangerateonthetransactiondate.Wheretheforeignnon-monetaryitemsmeasuredatthefairvalueshallbeconvertedintoamountinitsbookkeepingbasecurrencyatspotexchangerate,theexchangegainsandlossesarisingthereofshallbetreatedaschangeinfairvalue,andrecordedintothecurrentperiodgainsandlossesorasothercomprehensiveincomes.
(3)Translationofforeigncurrencyfinancialstatements
Whenitinvolvesoverseasbusinessinpreparingtheconsolidatedfinancialstatement,forthetranslationdifferenceofforeigncurrencymonetaryitemsofnetinvestmentinoverseasbusinessarisingfromthechangeinexchangerate,itshallberecordedintotheitemof“differenceofforeigncurrencyfinancialstatementtranslation”undertheowners’equity;andberecordedintodisposalgainsandlossesatcurrentperiodwhendisposingoverseasbusiness.TheforeigncurrencyfinancialstatementofoverseasbusinessshouldbetranslatedintoRMBfinancialstatementbythefollowingmethods:Theassetandliabilityitemsinthebalancesheetsshallbetranslatedataspotexchangerateonthebalancesheetdate.Amongtheowner’sequityitems,exceptfortheitemsas“undistributedprofits”,otheritemsshallbetranslatedatthespotexchangerateatthetimewhentheyareincurred.Theincomeandexpenseitemsintheprofitstatementsshallbetranslatedatthespotexchangerateofthetransactiondate.Theretainedearningsatperiod-endistheretainedearningstheperiod-endoflastyearafterthetranslation;retainedearningsatperiod-endshallbelistedasvariousdistributionitemsafterthetranslation;afterthetranslation,thebalancebetweenassetsandthesumofliabilitiesandshareholders’equitiesshallberecordedintoothercomprehensivegainsandlossesasdifferenceofforeigncurrencytranslation.Whereanenterprisedisposesofanoverseasbusinesswithoutthecontrolright,itshallshiftthedifferences,whichispresentedundertheitemsoftheshareholders’equitiesinthebalancesheetandwhicharisesfromthetranslationofforeigncurrencyfinancialstatementsrelatingtothisoverseasbusiness,intothedisposalprofitsandlossesofthecurrentperiodbyallorproportionofthedisposedoverseasbusiness.Foreigncashflowshallbetranslatedatthespotexchangerateofthecurrentperiodofthedateofcashflowincurred.Theinfluenceofexchangerateonthecashflowshallbeadjustmentitemandindividuallylistedinthecashflowstatement.Andtheopeningbalanceandtheactualbalanceofthesameperiodoflastyearshallbelistedattheamountsaftertranslationofforeigncurrencyfinancialstatementinthesameperiodoflastyear.WherethecontroloftheCompanyoveranoverseasoperationceasesduetodisposalofallorsomeoftheCompany’sowner’sequityintheoverseasoperationorotherreasons,theforeign-currencystatementtranslationdifferencebelongingtotheparentcompany’sowner’sequityinrelationtotheoverseasoperationwhichisstatedundertheshareholders’equityinthebalancesheetshallbeallrestatedasgainsandlossesofthedisposalperiod.WheretheCompany’sequityinanoverseasoperationdecreasesduetodisposalofsome
equityinvestmentorotherreasonsbuttheCompanystillhascontrolovertheoverseasoperation,theforeign-currencystatementtranslationdifferenceinrelationtothedisposedpartoftheoverseasoperationshallberecordedintominorityinterestsinsteadofcurrentgainsandlosses.Ifwhat’sdisposedissomeequityinanoverseasassociatedenterpriseorjointventure,theforeign-currencystatementtranslationdifferencerelatedtotheoverseasoperationshallberecordedintothegainsandlossesofthecurrentperiodofthedisposalaccordingtothedisposalratio.
9.FinancialInstrumentsWhentheCompanybecomesapartytoafinancialinstrument,itshallrecognizeafinancialassetorfinancialliability.
(1)Classification,recognitionandmeasurementoffinancialassetsTheCompanyclassifiesthefinancialassetsintofinancialassetsmeasuredatamortizedcost,financialassetsmeasuredbythefairvalueandthechangesrecordedinothercomprehensiveincomeandfinancialassetsatfairvaluethroughprofitorlossbasedonthebusinessmodelforfinancialassetsmanagementandcharacteristicsofcontractualcashflowoffinancialassetsFinancialassetsinitiallyrecognizedshallbemeasuredattheirfairvalues.Forfinancialassetsmeasuredattheirfairvaluesandofwhichthevariationisrecordedintotheprofitorlossofthecurrentperiod,thetransactionexpensesthereofshallbedirectlyincludedintothecurrentprofitorloss;forotherfinancialassets,thetransactionexpensesthereofshallbeincludedintotheinitiallyrecognizedamount.Foraccountsreceivableandnotesreceivablegeneratedfromsalesofcommoditiesorprovisionoflaborservices,excludingorwithoutregardtomajorfinancing,theexpectedconsiderationamounttheCompanyhastherighttocollectwillbetakenbytheCompanyastheinitiallyrecognizedamount.
①FinancialassetsmeasuredbytheamortizedcostThebusinessmodeoftheCompanytomanagethefinancialassetstargetsatcollectingthecontractualcashflow.What'smore,thecontractualcashflowcharacteristicsofthefinancialassetsareconsistentwiththebasiclendingarrangement,thatis,thecashflowgeneratedinthespecificdateisthepaymentoftheinterestbasedontheprincipalandoutstandingprincipalamount.ThiskindoffinancialassetsoftheCompanyshallbesubsequentlymeasuredbasedontheamortizedcostandeffectiveinterestmethod,andthegainsorlossesarisingfromtheamortization,impairmentshallbeincludedintocurrentprofitandloss.
②Financialassetsmeasuredatthefairvaluewithitschangesincludedintoothercomprehensiveincome
BusinessmodeformanagingfinancialassetsoftheCompanytakescontractcashflowcollectedastargetandsellingastargetandcontractcashflowcharacteristicsofsuchfinancialassetsareconsistentwithbasiclendingarrangement.TheCompanycalculatessuchfinancialassetsasperfairvaluewhosechangeisincludedintocorrespondingcomprehensiveincome,butimpairmentlossorgain,exchangegainorlossandinterestincomecalculatedasperactualinterestratemethodareincludedintothecurrentprofitandloss.Furthermore,theCompanydesignatespartialnon-tradableequityvehicleinvestmentasthefinancialassetmeasuredwithfairvaluewhosechangeisincludedintoothercomprehensiveincome.TheCompanyincludestherelateddividendincomeofsuchfinancialassetsintothecurrentprofitandlosswiththechangeinfairvalueincludedintoothercomprehensiveincome.Atthetimeofderecognitionofsuchfinancialassets,accumulatedgainorlossincludedintoothercomprehensiveincomebeforewillbeshiftedtoretainedearningsfromothercomprehensiveincomesbutnotincludedintothecurrentprofitandloss.
③FinancialassetsatfairvaluethroughprofitorlossTheCompanyclassifiesfinancialassetsexceptforabove-mentionedfinancialassetsmeasuredwithamortizedcostandfinancialassetsmeasuredwithfairvaluewhosechangeisincludedintoothercomprehensiveincomeintofinancialassetsatfairvaluethroughprofitorloss.Furthermore,atthetimeoftheinitialrecognition,toeliminateorsignificantlyreducetheaccountingmismatch,theCompanyspecifiespartialfinancialassetsasthefinancialassetsatfairvaluethroughprofitorloss.Forsuchfinancialassets,theCompanyadoptsthefairvalueforthesubsequentmeasurement,andthechangesinfairvalueareincludedintocurrentprofitandloss.
(2)Classification,recognitionandmeasurementoffinancialliabilitiesTheCompany’sfinancialliabilitiesare,oninitialrecognition,classifiedintofinancialliabilitiesatfairvaluethroughprofitorlossandotherfinancialliabilities.Forfinancialliabilitiesatfairvaluethroughprofitorloss,relevanttransactioncostsareimmediatelyrecognizedinprofitorlossforthecurrentperiod,andtransactioncostsrelatingtootherfinancialliabilitiesareincludedintheinitialrecognitionamounts.
①FinancialliabilitiesatfairvaluethroughprofitorlossFinancialliabilitiesatfairvaluethroughprofitorlossincludetradingfinancialliabilities(includingthederivativeinstrumentsbelongingtofinancialliabilities)andfinancialliabilitiesdesignatedattheinitialrecognitiontobemeasuredbythefairvalueandtheirchangesarerecordedinthecurrentprofitorloss.Tradingfinancialliabilities(includingthederivativeinstrumentsbelongingtofinancial
liabilities)aresubsequentlymeasuredatfairvalue,andthechangesoffairvalueexceptthoserelatedtohedgeaccounting)shallberecordedinthecurrentprofitorloss.Forthefinancialliabilitiesatfairvaluethroughprofitorloss,thechangeofsuchliability'sfairvaluearisingfromchangesintheCompany'sowncreditriskisincludedintoothercomprehensiveincome.Andwhentheliabilityisderecognized,theaccumulativechangeamountofitsfairvaluearisingfromthechangeofowncreditriskincludedintoothercomprehensiveincomeistransferredtotheretainedearnings.Thechangesoftheremainingfairvalueareincludedinthecurrentprofitorloss.Ifthetreatmentofchangeeffectsinowncreditriskofsuchfinancialliabilityintheabovemethodmaycauseorexpandtheaccountingmismatchingintheprofitorloss,theCompanywillincludeallgainsorlosses(includingtheamountinfluencedduetothechangesinowncreditriskoftheenterprise)ofsuchfinancialliabilityintothecurrentprofitorloss.②OtherfinancialliabilitiesOtherfinancialliabilitiesexceptforthoseformedduetotransferoffinancialassetsfailingtocomplywithderecognitionconditionorcontinuouslygettinginvolvedintransferredfinancialassetsandfinancialguaranteecontractareclassifiedintofinancialliabilitiesmeasuredwithamortizedcostandsubjecttosubsequentmeasurementbasedonamortizedcost.Gainsorlossesgeneratedfromderecognitionoramortizationareincludedintothecurrentprofitorloss.
(3)RecognitionandmeasurementoffinancialassetstransferTheCompanyderecognizesafinancialassetwhenoneofthefollowingconditionsismet:
1)therightstoreceivecashflowsfromtheassethaveexpired;
2)theenterprisehastransferreditsrightstoreceivecashflowsfromtheassettoathirdpartyunderapass-througharrangement;or
3)theenterprisehastransferreditsrightstoreceivecashflowsfromtheassetandeither(a)hastransferredsubstantiallyalltherisksandrewardsoftheasset,or(b)hasneithertransferrednorretainedsubstantiallyalltherisksandrewardsoftheasset,buthastransferredcontroloftheasset.Iftheenterprisehasneitherretainedalltherisksandrewardsfromthefinancialassetnorcontrolovertheasset,theassetisrecognizedaccordingtotheextentitexistsasfinancialasset,andcorrespondentliabilityisrecognized.Theextentofexistencerefersthelevelofriskbythefinancialassetchangestheenterpriseisfacing.Foratransferofafinancialassetinitsentiretythatsatisfiesthederecognitioncriteria,(a).the
carryingamountofthefinancialassettransferred;and(b)thesumoftheconsiderationreceivedfromthetransferandanycumulativegainorlossthathadbeenrecognizedinothercomprehensiveincome,isrecognizedinprofitorloss.Ifapartofthetransferredfinancialassetqualifiesforderecognition,thecarryingamountofthetransferredfinancialassetisallocatedbetweenthepartthatcontinuestoberecognizedandthepartthatisderecognized,basedontherelativefairvalueofthoseparts.Thedifferencebetween(a)thecarryingamountallocatedtothepartderecognized;and(b)thesumoftheconsiderationreceivedforthepartderecognizedandanycumulativegainorlossallocatedtothepartderecognizedwhichhasbeenpreviouslyrecognizedinothercomprehensiveincome,isrecognizedinprofitorloss.IftheCompanyendorsesthefinancialassetssoldbyrightofrecourseandholdingfinancialassets,itneedstoconfirmthatwhetheralmostallrisksandremunerationintheownershipoffinancialassetshavebeentransferredornot.Whereanenterprisehastransferrednearlyalloftherisksandrewardsrelatedtotheownershipofthefinancialassettothetransferee,itshallstoprecognizingthefinancialasset；Ifitretainednearlyalloftherisksandrewardsrelatedtotheownershipofthefinancialasset,itshallnotstoprecognizingthefinancialasset.IftheCompanydoesnottransferorretainnearlyalloftherisksandrewardsrelatedtotheownershipofthefinancialasset,thenitcontinuouslyjudgesthatwhethertheCompanyretainthecontroloftheassets,andconductsaccountingtreatmentaccordingtotheprinciplesdescribedinformerparagraphs.
(4)DerecognitionoffinancialliabilitiesIncaseofcurrentobligationoffinancialliabilities(orpartialfinancialliabilities)beingterminated,derecognitionofsuchfinancialliabilities(orpartialfinancialliabilities)isconductedbytheCompany.IftheCompany(borrower)concludesanagreementwiththelendertoreplaceoriginalfinancialliabilitieswithnewonesandcontacttermsofnewfinancialliabilitiesaredifferentfromthoseoforiginalfinancialliabilities,derecognitionoforiginalfinancialliabilitiesandrecognitionofnewfinancialliabilitiesshallbeconducted.Incaseofmaterialalterationofcontracttermsoforiginalfinancialliabilities(partialfinancialliabilities)bytheCompany,derecognitionoforiginalfinancialliabilitiesandrecognitionofnewfinancialliabilitiesaspermodifiedtermsshallbeconducted.Incaseofderecognitionoffinancialliabilities(partialfinancialliabilities),theCompanyincludesthebalancebetweenitscarryingvalueandpaymentconsideration(includingnon-cashassetstransferredoutorborneliabilities)intothecurrentprofitorloss.
(5)Offsettingfinancialassetsandfinancialliabilities
WhentheCompanyhasalegalrightthatiscurrentlyenforceabletosetofftherecognizedfinancialassetsandfinancialliabilities,andintendseithertosettleonanetbasis,ortorealizethefinancialassetandsettlethefinancialliabilitysimultaneously,afinancialassetandafinancialliabilityshallbeoffsetandthenetamountispresentedinthebalancesheet.Exceptfortheabovecircumstances,financialassetsandfinancialliabilitiesshallbepresentedseparatelyinthebalancesheetandshallnotbeoffset.
(6)Determinationoffinancialassetsandliabilities’fairvalueFairvalueistheamountforwhichanassetcouldbeexchanged,oraliabilitysettled,betweenknowledgeable,willingpartiesinanarm’slengthtransaction.Forafinancialinstrumentwhichhasanactivemarket,theCompanyusesquotedpriceintheactivemarkettoestablishitsfairvalue.Thequotedpriceintheactivemarketreferstothepricethatcanberegularlyobtainedfromexchangemarket,agencies,industryassociations,pricingauthorities;itrepresentsthefairmarkettradingpriceintheactualtransaction.Forafinancialinstrumentwhichdoesnothaveanactivemarket,theCompanyestablishesfairvaluebyusingavaluationtechnique.Valuationtechniquesincludeusingrecentarm’slengthmarkettransactionsbetweenknowledgeable,willingparties,referencetothecurrentfairvalueofanotherinstrumentthatissubstantiallythesame,discountedcashflowanalysisandoptionpricingmodels.TheCompanymeasuresinitiallyandsubsequentlythefairvalueofaninterestrateswapatthevalueofacompetitor’sinterestrateswapquotedbyarecognizedfinancialinstitutionasattheCompany’sbalancesheetdateinaccordancewiththeprincipleofconsistency.Invaluation,theCompanyadoptsapplicablevaluationtechniquessupportedbysufficientutilizabledataandotherinformationincurrentcircumstances,selectsinputvaluesconsistentwithassetorliabilitycharacteristicsconsideredinrelevantassetorliabilitytransactionsofmarketparticipatorsandprioritizestheapplyingrelevantobservableinputvalues.Unobservableinputvaluesshallnotbeappliedunlessrelevantobservableinputvaluesarenotaccessibleorfeasible.
(7)EquityinstrumentsAnequityinstrumentisanycontractthatevidencesaresidualinterestintheassetsoftheCompanyafterdeductingallofitsliabilities.Theconsiderationreceivedfromissuingequityinstruments,netoftransactioncosts,areaddedtoshareholders’equity.Alltypesofdistribution(excludingstockdividends)madebytheCompanytoholdersofequityinstrumentsaredeductedfromshareholders’equity.TheCompanydoesnotrecognizeanychangesinthefairvalueofequityinstruments.Anequityinstrumentdistributingdividendsduringtheperiodofcontinuedexistence
(includingthe“interest”generatedfromthoseclassifiedasequityinstrument)shallbetreatedasprofitdistribution.
10.ImpairmentofFinancialAssetsTheCompanyneedstoconfirmthatthefinancialassetssubjecttotheimpairmentlossarethefinancialassetsmeasuredbasedontheamortizedcost,thedebtinstrumentinvestmentmeasuredbasedonthefairvaluewithitsvariationsincludedintoothercomprehensiveincomesandtheleaseoutlayreceivable,mainlyincludingnotesreceivable,accountreceivable,otherreceivables,investmentoncreditor’srights,otherinvestmentsoncreditor’srightsandlong-termreceivablesetc.Besides,inrespectofthecontractassetsandpartialfinancialguaranteecontract,correspondingimpairmentprovisionsshallbecalculatedandwithdrawnandcorrespondingcreditimpairmentlossesrecognizedaccordingtovariousaccountingpoliciesmentionedinthispart.
(1)MethodsfortheRecognitionofImpairmentProvisionsForallmentioneditemsabove,theCompanyshallcalculateandwithdrawcorrespondingimpairmentprovisionsandrecognizecorrespondingcreditimpairmentlossesaccordingtoapplicableexpectedcreditlossmeasurementmethods(generalmethodsorsimplifiedmethods)withtheexpectedcreditlossasthebasis.Creditlossreferstothedifferencebetweenallreceivablecontractcashflowsandallexpectedcashflowsthatarediscountedtothepresentvaluebasedontheoriginalactualinterestrate--thepresentvalueofallcashshortfall.However,forthepurchasedororiginalfinancialassetssubjecttothecreditimpairment,theCompanyshallrealizethediscountingbasedontheactualinterestratesubjecttothecreditadjustment.Generalmethodsappliedtomeasuretheexpectedcreditlosscanbedescribedas:theCompanyshallevaluatewhetherthecreditriskofthefinancialassets(includingthecontractassetsandotherapplicableitems;thesamebelow)increasesremarkablyaftertheinitialrecognitiononthebalancesheetday;ifthecreditriskincreasesremarkablyaftertheinitialrecognition,theCompanyshallmeasuretheprovisionforlossbasedonthespecificexpectedcreditlossamountduringtheentireperiodofexistence;ifnot,theCompanyshallmeasuretheprovisionforlossbasedonthespecificexpectedcreditlossamountinthefollowing12months.Whileevaluatingtheexpectedcreditloss,theCompanyshalltakeallreasonableandwell-foundedinformationintoconsideration,includingtheforward-lookinginformation.Forthefinancialinstrumentoflowercreditriskonthebalancesheetday,theCompanyshallassumethatitscreditriskdoesnotincreaseremarkablyaftertheinitialrecognition,andcorrespondingprovisionforlossshallbemeasuredaccordingtotheexpectedcreditlossin
thefollowing12months.
(2)StandardsforJudgingWhethertheCreditRiskIncreasesRemarkablyaftertheInitialRecognitionIfanyfinancialassets’probabilityofdefaultwithintheexpectedperiodofexistencedeterminedonthebalancesheetdayisobviouslyhigherthanthatwithintheexpectedperiodofexistencedeterminedduringtheinitialrecognition,itshallindicatetheremarkableincreaseofthefinancialassets’creditrisk.Unlessitisunderspecialcircumstances,theCompanyshalladoptvariousvariationsinthedefaultriskinthefollowing12monthsasthereasonablebasisforestimatingcorrespondingvariationsinthedefaultriskwithintheentireperiodofexistenceanddeterminingwhetherthecreditriskincreasesremarkablyaftertheinitialrecognition.
(3)CombinedMethodforEvaluatingtheExpectedCreditRiskbasedonCorrespondingCombinationForthefinancialassetswithremarkablydifferentcreditrisk,theCompanyshallseparatelyevaluateitscreditrisk,includingthereceivablesfromrelatedparties,receivablesinvolvedinanydisputewiththeotherpartyoranylawsuitandarbitration,andreceivableswithobviousevidenceshowingthatthedebtorcannotfulfilltheduepaymentobligationetc.Exceptforthefinancialassetswhosecreditriskshallbeseparatelyevaluated,theCompanyshalldividethesefinancialassetsintodifferentcombinationsbasedonthespecificriskfeatures,onwhichbasis,correspondingcreditriskscanbeevaluated.
(4)AccountingTreatmentMethodsAppliedtotheImpairmentofFinancialAssetsAttheendoftheperiod,theCompanyshallcalculatetheexpectedcreditlossesofvariousfinancialassets.Iftheexpectedcreditlossishigherthanthecarryingamountofitscurrentimpairmentprovision,thedifferenceshallberecognizedastheimpairmentloss;iflower,thedifferenceshallberecognizedasthegainfromtheimpairment.
(5)MethodsforDeterminingtheCreditLossofVariousFinancialAssets①NotesReceivablesFornotesreceivable,theCompanyshallmeasuretheprovisionforlossbasedonthespecificexpectedcreditlossduringtheentireperiodofexistence.Accordingtothecreditriskcharacteristicsthereof,exceptthosewithseparateevaluationofcreditrisk,notesreceivablecanbedividedintodifferentcombinations:
Item
| Item | Basis |
BankAcceptance
| BankAcceptance | TheAcceptershallbethebankwithsmallercreditrisk |
| TradeAcceptance | Classifiedbycreditriskofacceptors |
②AccountReceivableandContractAssetsForaccountreceivableandcontractassetsexcludingsignificantfinancingcomposition,theCompanyshallmeasuretheprovisionforlossaccordingtothespecificexpectedcreditlossamountwithintheentireperiodofexistence.Foraccountreceivable,contractassetsandleasepaymentreceivableincludingsignificantfinancingcomposition,theCompanyshallalwaysmeasuretheprovisionforlossaccordingtothespecificexpectedcreditlossamountwithintheperiodofexistence.Excepttheaccountreceivableandcontractassetswhosecreditrisksshallbeseparatelyevaluated,theCompanyshalldividethemintodifferentcombinationsbasedonthespecificcreditrisks:
| Item | Basis |
| AgingCombination | Thiscombinationinvolvestheaccountsreceivablewhosecreditriskshallnotbeseparatelyevaluatedbyregardingtheagingascreditriskfeature. |
| ProjectFundsCombination | Thisportfolioistheproject-relatedreceivables. |
| ompanyCombinationwithintheScopeofConsolidation | Theaccountsreceivablewithinthescopeofconsolidation |
③OtherReceivablesBydeterminingwhetherthecreditriskofotherreceivablesincreasesremarkablyaftertheinitialrecognition,theCompanyshallmeasuretheimpairmentlossbasedonthespecificexpectedcreditlossinthefollowing12monthsorduringtheentireperiodofexistence.Exceptotherreceivableswhosecreditrisksshallbeseparatelyevaluated,theCompanyshalldividethemintodifferentcombinationsbasedonthespecificcreditriskfeatures:
| Item | Basis |
| AgingCombination | Thiscombinationinvolvesotherreceivableswhosecreditriskshallnotbeseparatelyevaluatedbyregardingtheagingascredit |
riskfeature.
| riskfeature. | |
| LowRiskCombination | Thiscombinationshallregardotherreceivablesofextremelylowrisk(includingtherevolvingfund,thecashdepositandtheguaranteedeposit)asthecreditriskfeature. |
| CompanyCombinationwithintheScopeofConsolidation | Otherreceivableswithinthescopeofconsolidation. |
④Long-termReceivables(excepttheaccountreceivableandtheleasepaymentreceivableincludingthesignificantfinancingcomposition)Bydeterminingwhetherthecreditriskoflong-termaccountreceivablesincreasesremarkablyaftertheinitialrecognition,theCompanyshallmeasuretheimpairmentlossbasedonthespecificexpectedcreditlossinthefollowing12monthsorduringtheentireperiodofexistence.Exceptlong-termaccountreceivableswhosecreditrisksshallbeseparatelyevaluated,theCompanyshalldividethemintodifferentcombinationsbasedonthespecificcreditriskfeatures:
| Item | Basis |
| FinancingLeaseCombination | Regardingthelong-termreceivablesrelatedtothefinancingleaseasthecreditriskcharacteristics |
| FranchiseCombination | Regardingthelong-termreceivablesrelatedtothePPPProjectasthecreditriskcharacteristics |
11.Inventory
(1)ClassificationTheCompany’sinventoriesmainlyincluderawmaterials,goodsinprocess;merchandiseonhand,goodsdelivered,circulatingmaterials,andpropertyinventories(developmentproduct,anddevelopmentcost),andfinishedbutunsettledassetsofconstructioncontract.
①Developmentproductreferstothefinishedandheld-for-saleproperty.
②Developmentcostsreferstotheunfinishedpropertywiththedevelopmentpurposeforsale.
③Thefinishedbutunsettledassetsofconstructioncontractreferstotheexcessamountofthesumofaccumulativelyincurredcostsandrecognizedgrossmargin(loss)ofcontractinprocessoverthesettledamount.
(2)Pricingmethodforoutgoinginventories?Pricingmethodofcommoninventories
Theinventoriesshallbemeasuredinlightoftheircostwhenobtained.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,estimatedsaleexpenseandrelevanttaxesfrom
theestimatedsalepriceofinventories.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-currentassetordisposalgrouptorecoveritscarryingvalue,thenthenon-currentassetordisposalgroupisclassifiedasassetsheldforsale.Thespecificstandardsaresimultaneouslymeetingthefollowingconditions:assetsordisposalgroupscanbesoldimmediatelyundercurrentconditionsbasedonthepracticeofsellingsuchassetsordisposalgroupsinsimilartransactions;theCompanyhasalreadymadearesolutiononthesaleplanandobtainedacertainpurchasecommitment,andthesaleisexpectedtobecompletedwithinoneyear.Adisposalgroupreferstoagroupofassetsthataredisposedoftogetherasawholebysaleorothermeansinatransactionandtheliabilitiesdirectlyrelatedtotheseassetstransferredinthetransaction.Wheretheassetgrouporcombinationofassetgroupstowhichadisposalgroupbelongsapportionsthegoodwillacquiredinthebusinesscombinationinaccordance
withtheAccountingStandardsforEnterprisesNo.8-AssetImpairment,thedisposalgroupshallincludethegoodwillallocatedtoit.Iftherearenon-currentassetsordisposalgroupsheldforsaleduringinitialmeasurementoronthebalancesheetdaybasedonremeasurementofthisCompany,ifthecarryingvalueishigherthanthenetamountbydeductingthesellingexpenseswiththefairvalue,thecarryingvalueshallbewrittendownandbeequaltothenetamountbydeductingthesellingexpenseswiththefairvalue.Thewrite-downamountshallbeconfirmedasthelossofdepreciationofassetsandshallbeincludedintotheprofitsandlossesofthecurrentperiod.Atthesametime,preparetocalculateandwithdrawtheassetspurchasedandunderagreementstoresell.Forthedisposalgroup,deductthecarryingvalueofthegoodwillinthedisposalgroupwiththeassetdepreciationlossesconfirmed,thendeductthecarryingvalueofeachnon-currentassetinthedisposalgroupconformingtothemeasurementregulationsofAccountingStandardsforBusinessEnterprisesNo.42-non-currentAssetsPurchasedandunderAgreementstoResell,DisposalGroupandOperationTermination(hereinafterreferredtoas"theStandardforAssetsPurchasedandunderAgreementstoResell").Ifthenetamountbydeductingthesellingexpenseswiththefairvalueofthedisposalgrouppurchasedandunderagreementstoresellonthesubsequentbalancesheetdate,thepreviouswrite-downamountshallberecoveredandshallbereversedwithintheassetdepreciationlossesamountofthenon-currentconfirmedasperregulationoftheStandardforAssetsPurchasedandunderAgreementstoResellafterbeingclassifiedintothecategorypurchasedandunderagreementstoresell.Thereverseamountshallbeincludedintothecurrentprofitsandlosses,andthecarryingvalueshallbeaddedaspertheproportionofthecarryingvalueofeachnon-currentassetinthedisposalgroupapplicabletotheStandardforAssetsPurchasedandunderAgreementstoResellexceptforthegoodwill;Thegoodwillcarryingvaluedeductedandtheassetdepreciationlossesofthenon-currentassetsapplicabletothemeasurementregulationsoftheStandardforAssetsPurchasedandunderAgreementstoResellbeforeitsconfirmationofbeingclassifiedintothecategorypurchasedandunderagreementstoresellshallnotbereversed.Depreciationoramortizationinthenon-currentassetsheldforsaleorthenon-currentassetsinthedisposalgroupshallnotbecalculatedorwithdrawn.Interestsofliabilitiesandotherexpensesinthedisposalgrouppurchasedandunderagreementstoresellshallbeconfirmedcontinuously.Whenanon-currentassetordisposalgroupfailtomeettheclassificationconditionsforthecategoryofheld-for-sale,theCompanywillnolongerclassifyanon-currentassetordisposal
groupasheld-for-saleorremoveoutanon-currentassetfromtheheld-for-saledisposalgroup,anditwillbemeasuredbyoneofthefollowingswhicheverislower:(1)Thecarryingvaluebeforebeingclassifiedasheldforsalewillbeadjustedaccordingtothedepreciation,amortizationorimpairmentthatwouldhavebeenrecognizedundertheassumptionthatitwasnotclassifiedasheldforsale;(2)Therecoverableamount.
13.Long-termEquityInvestmentsThelong-termequityinvestmentsofthispartrefertothelong-termequityinvestmentsthattheCompanyhascontrol,jointcontrolorsignificantinfluenceovertheinvestees.Thelong-termequityinvestmentthattheCompanydoesnothavecontrol,jointcontrolorsignificantinfluenceovertheinvestees,shouldberecognizedasavailable-for-salefinancialassetsorfinancialassetsatfairvaluethroughprofitorlossforaccountingbefore2019anditwillbemeasuredasfinancialassetsatfairvaluethroughprofitorlosssinceJanuary2019,amongwhich,forthosenotfortrading,theCompanycanchoosetodesignatethemasfinancialassetsmeasuredatfairvalueandchangesthereofarerecordedintoothercomprehensiveincomeatinitialrecognitionforaccounting,andfordetailsoftheaccountingpoliciesgoverning,pleaserefertoNotesIV9“FinancialInstrument”.Jointcontrol,referstothecontroljointlyownedaccordingtotherelevantagreementonanarrangementbytheCompanyandtherelevantactivitiesofthearrangementshouldbedecidedonlyaftertheparticipantswhichsharethecontrolrightmakeconsensus.SignificantinfluencereferstothepoweroftheCompanywhichcouldanticipateinthefinanceandtheoperationpolicesoftheinvestees,butcouldnotcontrolorjointlycontroltheformulationofthepolicieswiththeotherparties.
(1)RecognitionofinvestmentcostsAsforlong-termequityinvestmentsacquiredbyenterprisemerger,ifthemergerisunderthesamecontrol,theshareofthecarryingvalueoftheshareholders’equityofthemergedenterprise,onthedateofmerger,isregardedastheinitialcostofthelong-termequityinvestment.Thedifferencebetweentheinitialcostofthelong-termequityinvestmentandthepaymentincash,non-cashassetstransferredaswellasthecarryingvalueofthedebtsbornebythemergingpartyshalloffsetagainstthecapitalreserve.Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.Iftheconsiderationofthemergingenterpriseisthatitissuesequitysecurities,itshall,onthedateofmerger,regardtheshareofthecarryingvalueoftheshareholder'sequityofthemergedenterpriseontheconsolidatedfinancialstatementoftheultimatecontrolpartyastheinitialcostofthelong-termequityinvestment.Thetotalfacevalueofthestocksissuedshallberegardedasthe
capitalstock,whilethedifferencebetweentheinitialcostofthelong-termequityinvestmentandtotalfacevalueofthesharesissuedshalloffsetagainstthecapitalreserve.Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.Theequitiesofthecombinedpartywhichrespectivelyacquiredthroughmultipletransactionunderthesamecontrolthatultimatelyformintothecombinationoftheenterprisesunderthesamecontrol,shouldbedisposedaccordingwhetherbelongstopackagedeal;ifbelongstopackagedeal,eachtransactionwouldbeexecutedaccountingtreatmentbytheCompanyasatransactionofacquiringthecontrolright.Ifnotbelongstopackagedeal,itshall,onthedateofmerger,regardtheenjoyedshareofthecarryingvalueoftheshareholder'sequityofthemergedenterpriseontheconsolidatedfinancialstatementoftheultimatecontrolpartyastheinitialcostofthelong-termequityinvestment,andasforthedifferencebetweentheinitialinvestmentcostofthelong-termequityinvestmentandsumofthecarryingvalueofthelong-termequityinvestmentbeforethecombinationandthecarryingvalueoftheconsiderationofthenewpaymentthatfurtherrequiredonthecombinationdate,shouldadjustthecapitalreserve;ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.Theequityinvestmentheldbeforethecombinationdatewhichadoptedtheequitymethodforaccounting,ortheothercomprehensiveincomeconfirmedfortheavailable-for-salefinancialassets(financialassetsatfairvalueandchangesthereofarerecordedintocomprehensiveincome),shouldnothaveanyaccountingtreatmentforthemoment.Forthelong-terminvestmentrequiredfromthebusinesscombinationunderdifferentcontrol,theinitialinvestmentcostregardedaslong-termequityinvestmentonthepurchasingdateaccordingtothecombinationcost,thecombinationcostsshallbethesumofthefairvaluesoftheassetspaid,theliabilitiesincurredorassumedandtheequitysecuritiesissuedbytheCompany.Theequitiesoftheacquireeswhichrespectivelyacquiredthroughmultipletransactionthatultimatelyformintothecombinationoftheenterprisesunderthedifferentcontrol,shouldbedisposedaccordingwhetherbelongstopackagedeal;ifbelongstopackagedeal,eachtransactionwouldbeexecutedaccountingtreatmentbytheCompanyasatransactionofacquiringthecontrolright.Ifnotbelongstopackagedeal,thesumofthecarryingvalueoftheoriginalheldequityinvestmentoftheacquireesandthenewlyaddedinvestmentcostshouldberegardedastheinitialinvestmentcostofthelong-termequityinvestmentthatchangedtobeaccountedbycostmethod.Onorbefore31December2018,iftheoriginalheldequityiscalculatedbycostmethod,theotherrelevantcomprehensiveincomewouldnothaveanyaccountingdisposalforthemoment.Iftheoriginalheldequity
investmentisthefinancialassetsavailableforsale,itsdifferencebetweenthefairvalueandthecarryingvalueaswellastheaccumulativechangesofthefairvaluethatincludeintheothercomprehensiveincome,shouldtransferintothecurrentgainsandlosses.Thecommissionfeesforaudit,lawservices,assessmentandconsultancyservicesandotherrelevantexpensesoccurredinthebusinesscombinationbythecombiningpartyorthepurchaseparty,shallberecordedintocurrentprofitsandlossesupontheiroccurrence;thetransactionexpensefromtheissuanceofequitysecuritiesorbondssecuritieswhichareasconsiderationforcombinationbythecombiningparty,shouldberecordedastheinitialamountofequitysecuritiesandbondssecurities.Besidesthelong-termequityinvestmentsformedbybusinesscombination,theotherlong-termequityinvestmentsshallbeinitiallymeasuredbycost,thecostisfixedinaccordancewiththewaysofgaining,suchasactualcashpaymentpaidbytheCompany,thefairvalueofequitysecuritiesissuedbytheCompany,theagreedvalueoftheinvestmentcontractoragreement,thefairvalueororiginalcarryingamountofexchangedassetsfromnon-monetaryassetsexchangetransaction,thefairvalueofthelong-termequityinvestments,etc.Theexpenses,taxesandothernecessaryexpendituresdirectlyrelatedwithgainingthelong-termequityinvestmentsshallalsoberecordedintoinvestmentcost.Thelong-termequityinvestmentcostforthosecouldexecutesignificantinfluencesontheinvesteesbecauseofappendingtheinvestmentorcouldexecutejointcontrolbutnotformascontrol,shouldbeasthesumofthefairvalueoftheoriginalheldequityinvestmentandthenewlyaddedinvestmentcostrecognizedaccordingtotheNo.22ofAccountingStandardsforBusinessEnterprises—RecognitionandMeasurementofFinancialInstrument.
(2)SubsequentmeasurementandrecognitionofgainsorlossesAlong-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,andatthesametimeadjustthecarryingvalueofthelong-termequityinvestment;correspondingreducethecarryingvalueofthelong-termequityinvestmentaccordingtoprofitswhichbedeclaredtodistributebytheinvesteesortheportionofthecalculationofcashdividendswhichshouldbeenjoyed;fortheotherchangesexceptforthenetgainsandlosses,othercomprehensiveincomeandtheowners’equityexceptfortheprofitsdistributionoftheinvestees,shouldadjustthecarryingvalueofthelong-termequityinvestmentaswellasincludeinthecapitalreserve.Theinvestingenterpriseshall,onthegroundofthefairvalueofallidentifiableassetsoftheinvestedentitywhenitobtainstheinvestment,recognizetheattributableshareofthenetprofitsandlossesoftheinvestedentityafteritadjuststhenetprofitsoftheinvestedentity.IftheaccountingpoliciesadoptedbytheinvesteesarenotaccordwiththatoftheCompany,shouldbeadjustedaccordingtotheaccountingpoliciesoftheCompanyandthefinancialstatementoftheinvesteesduringtheaccountingperiodandaccordingwhichtorecognizetheinvestmentincomeaswellasothercomprehensiveincome.ForthetransactionhappenedbetweentheCompanyandassociatedenterprisesaswellasjointventures,iftheassetslaunchedorsoldnotformintobusiness,theportionoftheunrealizedgainsandlossesoftheinternaltransaction,whichbelongstotheCompanyaccordingtothecalculationoftheenjoyedproportion,shouldrecognizetheinvestmentgainsandlossesonthebasis.ButthelossesoftheunrealizedinternaltransactionhappenedbetweentheCompanyandtheinvesteeswhichbelongstotheimpairmentlossesofthetransferredassets,shouldnotbeneutralized.IftheassetslaunchedbythisCompanytotheassociatedenterpriseorjointventuresconstitutethebusiness,andtheinvestorobtainsthelong-termequityinvestmentbutfailstoobtainthecontrolright,thefairvalueofbusinesslaunchedistakenastheinitialinvestmentcostofnewly-increasedlong-termequityinvestment,andthedifferencebetween
initialinvestmentcostandcarryingvalueofbusinesslaunchedwillbeincludedincurrentprofitandloss.IftheassetssoldbythisCompanytotheassociatedenterprisesorjointventuresconstitutethebusiness,thedifferencebetweenconsiderationandcarryingvalueofbusinesswillbeincludedincurrentprofitandloss.IfthisCompany'sassetspurchasedfromtheassociatedenterprisesorjointventuresconstitutebusiness,accountingtreatmentshallbeconductedinaccordancewiththeprovisionsoftheAccountingStandardsforBusinessEnterprisesNo.20--BusinessCombination,fullyrecognizethegainsorlossesrelatedtothetransaction.TheCompanyshallrecognizethenetlossesoftheinvestedenterpriseuntilthecarryingvalueofthelong-termequityinvestmentandotherlong-termrightsandinterestswhichsubstantiallyfromthenetinvestmentmadetotheinvestedentityarereducedtozero.However,iftheCompanyhastheobligationtoundertakeextralosses,itshallberecognizedastheestimatedliabilitiesinaccordancewiththeestimateddutiesandthenrecordedintoinvestmentlossesatcurrentperiod.Iftheinvestedentityrealizesanynetprofitslater,theCompanyshall,aftertheamountofitsattributableshareofprofitsoffsetsagainstitsattributableshareoftheun-recognizedlosses,resumerecognizingitsattributableshareofprofits.Forthelong-termequityinvestmentheldbytheCompanybeforethefirstexecutionofthenewaccountingcriterionoftheassociatedenterprisesandjointventures,ifthereisdebitdifferenceoftheequityinvestmentrelatedtotheinvestment,shouldbeincludedinthecurrentgainsandlossesaccordingtotheamountofthestraight-lineamortizationduringtheoriginalremainedperiod.
③AcquiringsharesofminorityinterestInthepreparationforthefinancialstatements,thebalanceexistedbetweenthelong-termequityinvestmentincreasedbyacquiringsharesofminorityinterestandtheattributablenetassetsonthesubsidiarycalculatedbytheincreasedsharesheldsincethepurchasedate(orcombinationdate),thecapitalreservesshallbeadjusted,ifthecapitalreservesarenotsufficienttooffset,theretainedprofitsshallbeadjusted.
④Disposaloflong-termequityinvestmentInthepreparationoffinancialstatements,theCompanydisposedpartofthelong-termequityinvestmentonsubsidiarieswithoutlosingitscontrollingrightonthem,thebalancebetweenthedisposedpriceandattributablenetassetsofsubsidiariesbydisposingthelong-termequityinvestmentshallberecordedintoowners’equity;wheretheCompanylossesthecontrollingrightbydisposingpartoflong-termequityinvestmentonsuchsubsidiaries,it
shalltreatedinaccordancewiththerelevantaccountingpoliciesinNoteIV.5(2)“Methodonpreparationofcombinedfinancialstatements”.Forotherwaysondisposaloflong-termequityinvestment,thebalancebetweenthecarryingvalueofthedisposedequityanditsactualpaymentgainedshallberecordedintocurrentprofitsandlosses.Forthelong-termequityinvestmentmeasuredbyadoptingequitymethod,iftheremainedequityafterdisposalstilladoptstheequitymethodformeasurement,theothercomprehensiveincomeoriginallyrecordedintoshareholders’equityshouldadoptthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteesaccordingtothecorrespondingproportion.Theowners’equityrecognizedowningtothechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionoftheinvestees,shouldbetransferredintothecurrentgainsandlossesaccordingtotheproportion.Forthelong-termequityinvestmentwhichadoptsthecostmethodofmeasurement,iftheremainedequitystilladoptthecostmethod,theothercomprehensiveincomerecognizedowningtoadoptingtheequitymethodformeasurementortherecognitionandmeasurementstandardsoffinancialinstrumentbeforeacquiringthecontroloftheinvestees,shouldadoptthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteesandshouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion;thechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionamongthenetassetsoftheinvesteeswhichrecognizedbyadoptingtheequitymethodformeasurement,shouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion.ForthosetheCompanylostthecontroloftheinvesteesbydisposingpartoftheequityinvestmentaswellastheremainedequityafterdisposalcouldexecutejointcontrolorsignificantinfluencesontheinvestees,shouldchangetomeasurebyequitymethodwhencompilingtheindividualfinancialstatementandshouldadjustthemeasurementoftheremainedequitytoequitymethodasadoptedsincethetimeacquired;iftheremainedequityafterdisposalcouldnotexecutejointcontrolorsignificantinfluencesontheinvestees,shouldchangetheaccountingdisposalaccordingtotherelevantregulationsoftherecognitionandmeasurementstandardsoffinancialinstrument,anditsdifferencebetweenthefairvalueandcarryingvalueonthedatelosethecontrolrightshouldbeincludedinthecurrentgainsandlosses.Fortheothercomprehensiveincomerecognizedbyadoptingequitymethodformeasurementortherecognitionandmeasurementstandardsoffinancial
instrumentbeforetheCompanyacquiredthecontroloftheinvestees,shouldexecutetheaccountingdisposalbyadoptingthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteeswhenlosethecontrolofthem,whilethechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionamongthenetassetsoftheinvesteeswhichrecognizedbyadoptingtheequitymethodformeasurement,shouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion.Ofwhich,forthedisposedremainedequitywhichadoptedtheequitymethodformeasurement,theothercomprehensiveincomeandtheotherowners’equityshouldbecarriedforwardaccordingtotheproportion;forthedisposedremainedequitywhichchangedtoexecutetheaccountingdisposalaccordingtotherecognitionandmeasurementstandardsoffinancialinstrument,theothercomprehensiveincomeandtheotherowners’equityshouldbecarriedforwardinfullamount.ForthosetheCompanylostthecontroloftheinvesteesbydisposingpartoftheequityinvestment,thedisposedremainedequityshouldchangetocalculateaccordingtotherecognitionandmeasurementstandardsoffinancialinstrument,anddifferencebetweenthefairvalueandcarryingvalueonthedatelosethecontrolrightshouldbeincludedinthecurrentgainsandlosses.Fortheothercomprehensiveincomerecognizedfromtheoriginalequityinvestmentbyadoptingtheequitymethod,shouldexecutetheaccountingdisposalbyadoptingthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteeswhenterminatetheequitymethodformeasurement,whilefortheowners’equityrecognizedowningtothechangesoftheotherowner’sequityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionoftheinvestees,shouldbetransferredintothecurrentinvestmentincomewithfullamountwhenterminateadoptingtheequitymethod.TheCompanyrespectivelydisposestheequityinvestmentofthesubsidiariesthroughmultipletransactionsuntillosethecontrolright,iftheabovetransactionsbelongstothepackagedeal,shouldexecutetheaccountingdisposalbyregardingeachtransactionasadealofdisposingtheequityinvestmentofthesubsidiariesuntillosethecontrolright,whilethedifferencebetweeneachexpensesofthedisposalandthecarryingvalueofthelong-termequityinvestmentinaccordwiththedisposedequitybeforelosingthecontrolright,shouldfirstlyberecognizedasothercomprehensiveincomethenbetransferredintothecurrentgainsandlossesoflosingthecontrolrightalonguntilthetimewhenloseit.
14.InvestmentPropertyTheterm“investmentproperty”referstotherealestateheldforgeneratingrentand/orcapital
appreciation.InvestmentpropertyoftheCompanyincludetherighttouseanylandwhichhasalreadybeenrented;therighttouseanylandwhichisheldandpreparedfortransferafterappreciation;andtherighttouseanybuildingwhichhasalreadybeenrented.Theinitialmeasurementoftheinvestmentpropertyshallbemadeatitscost.SubsequentexpendituresincurredforaninvestmentpropertyisincludedinthecostoftheinvestmentpropertywhenitisprobablethateconomicbenefitsassociatedwiththeinvestmentpropertywillflowtotheCompanyandthecostcanbereliablymeasured,otherwisetheexpenditureisrecognizedinprofitorlossintheperiodinwhichtheyareincurred.TheCompanyshallmakeafollow-upmeasurementtotheinvestmentpropertybyemployingthecostpatternonthedateofthebalancesheet.Anaccrualdepreciationoramortizationshallbemadefortheinvestmentpropertyinthelightoftheaccountingpoliciesoftheuserightofbuildingsorlands.Fordetailsofimpairmenttestmethodandwithdrawalmethodofimpairmentprovisionofinvestmentproperty,pleaserefertoNoteIV.20.“Long-termassetsimpairment”.Whenowner-occupiedrealestateorinventoriesarechangedintoinvestmentpropertyorinvestmentpropertyischangedintoowner-occupiedrealestate,ofwhichbookvaluepriortothechangeshallbetheentryvalueafterthechange.Whenaninvestmentpropertyischangedtoanowner-occupiedrealestate,itwouldbetransferredtofixedassetsorintangibleassetsatthedateofsuchchange.Whenanowner-occupiedrealestateischangedtobeheldtoearnrentalorforcapitalappreciation,thefixedassetorintangibleassetistransferredtoinvestmentpropertyatthedateofsuchchange.Ifthefixedassetorintangibleassetischangedintoinvestmentpropertymeasuredbyadoptingthecostpattern,whosebookvaluepriortothechangeshallbetheentryvalueafterthechange;ifthefixedassetorintangibleassetischangedintoinvestmentpropertymeasuredbyadoptingthefairvaluepattern,whosefairvalueonthedateofsuchchangeshallbetheentryvalueafterthechangeAninvestmentpropertyisderecognizedondisposalorwhentheinvestmentpropertyispermanentlywithdrawnfromuseandnofutureeconomicbenefitsareexpectedfromitsdisposal.Theamountofproceedsonsale,transfer,retirementordamageofaninvestmentpropertylessitscarryingamountandrelatedtaxesandexpensesisrecognizedinprofitorlossintheperiodinwhichitisincurred.
15.FixedAssets
(1)Conditionsforrecognitionoffixedassets
Fixedassetsrefertotangibleassetsheldfortheproductionofcommodities,theprovisionofservices,leasingoroperationandmanagement,whoseservicelifeexceedsoneaccountingyear.Fixedassetsarerecognizedonlywhentheeconomicbenefitsassociatedwiththemarelikelytoflowintothecompanyandtheircostscanbereliablymeasured.Fixedassetsareinitiallymeasuredatcost,takingintoaccounttheimpactofexpectedabandonmentcosts.
(2)DepreciationmethodsofeachfixedassetThefixedassetsshouldbewithdrawnanddepreciationbystraight-linedepreciationwithintheusefullifesincethenextmonthwhenthefixedassetsreachtheestimatedavailablestate.Theusefullife,estimatednetsalvageandtheyearlydiscountedrateofeachfixedassetareasfollows:
Categoryoffixedassets
| 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”referstotheexpectedamountthattheCompanymayobtainfromthecurrentdisposalofafixedassetafterdeductingtheexpecteddisposalexpensesattheexpirationofitsexpectedusefullife.
(3)TestingmethodofimpairmentandwithdrawalmethodofprovisionforimpairmentonfixedassetsFordetailsofthetestingmethodofimpairmentandwithdrawmethodofimpairmentprovisionforimpairmentonfixedassets,pleaserefertoNoteIV.20“Long-termassetsimpairment”.
(4)Recognitionbasis,pricinganddepreciationmethodoffixedassetsbyfinanceleaseThe“financelease”shallrefertoaleasethathastransferredinsubstancealltherisksandrewardsrelatedtotheownershipofanasset.Itsownershipmayormaynoteventuallybetransferred.Thefixedassetsbyfinanceleaseshalladoptthesamedepreciationpolicyforself-ownedfixedassets.Ifitisreasonabletobecertainthatthelesseewillobtaintheownershipoftheleasedassetwhentheleasetermexpires,theleasedassetshallbefullydepreciatedoveritsusefullife.Ifitisnotreasonabletobecertainthatthelesseewillobtaintheownershipoftheleasedassetattheexpiryoftheleaseterm,theleasedassetshallbefullydepreciatedovertheshorteroneoftheleasetermoritsusefullife.
(5)OtherexplanationsThefollow-upexpensesrelatedtoafixedasset,iftheeconomicbenefitspertinenttothisfixedassetarelikelytoflowintotheenterpriseanditscostcanbereliablymeasured,shallberecordedintocostoffixedassetsandultimatelyrecognizedasthecarryingvalueofthereplacedpart;otherwise,theyshallbeincludedinthecurrentprofitsandlosses.Terminatetorecognizethefixedassetswhenthefixedassetsunderthedisposingstateorbeestimatedthatcouldnotoccuranyeconomybenefitsthroughusingordisposing.WhentheCompanysells,transfersordiscardsanyfixedassets,orwhenanyfixedassetsoftheCompanyisdamagedordestroyed,theCompanyshalldeductthecarryingvalueofthefixedassetsaswellastherelevanttaxesfromthedisposalincome,andincludetheamountinthecurrentprofitsandlosses.TheCompanyshallchecktheusefullife,expectednetsalvagevalueanddepreciationmethodofthefixedassetsattheendoftheyearatleast,ifthereisanychange,itshallberegardedasachangeoftheaccountingestimates.
16.ConstructioninProgressConstructioninprocessismeasuredatactualcost.Actualcostcomprisesconstructioncosts,borrowingcoststhatareeligibleforcapitalizationbeforethefixedassetsbeingreadyfortheirintendedusandotherrelevantcosts.Constructioninprocessistransferredtofixedassetswhentheassetsarereadyfortheirintendeduse.Fordetailsofthetestingmethodofimpairmentandwithdrawmethodofimpairmentprovisiononconstructioninprogress,pleaserefertoNoteIV.20“Long-termassetsimpairment”.
17.BorrowingCostsTheborrowingcostsshallincludeinterestonborrowings,amortizationofdiscountsor
premiumsonborrowings,ancillaryexpenses,andexchangebalanceonforeigncurrencyborrowings.Whentheborrowingcostscanbedirectlyattributabletotheconstructionorproductionofassetseligibleforcapitalization,andtheassetdisbursementsortheborrowingcostshavealreadyincurred,andtheconstructionorproductionactivitieswhicharenecessarytopreparetheassetforitsintendeduseorsalehavealreadystarted,thecapitalizationofborrowingcostsbegins.Whentheasseteligibleforcapitalizationunderacquisitionandconstructionorproductionisreadyfortheintendeduseorsale,thecapitalizationoftheborrowingcostsshallbeceased.Otherborrowingcostsshallberecognizedasexpenseswhenincurred.Theto-be-capitalizedamountofinterestsshallbedeterminedinlightoftheactualinterestsincurredofthespeciallyborrowedloanatthepresentperiodminustheincomeofinterestsearnedontheunusedborrowingloansasadepositinthebankorasatemporaryinvestment;theenterpriseshallcalculateanddeterminetheto-be-capitalizedamountonthegeneralborrowingbymultiplyingtheweightedaverageassetdisbursementofthepartoftheaccumulativeassetdisbursementsminusthegeneralborrowingbythecapitalizationrateofthegeneralborrowingused.Thecapitalizationrateshallbecalculatedanddeterminedinlightoftheweightedaverageinterestrateofthegeneralborrowing.Duringtheperiodofcapitalization,theexchangebalanceonforeigncurrencyspecialborrowingsshallbecapitalized;theexchangebalanceonforeigncurrencygeneralborrowingsshallberecordedintocurrentprofitsandlosses.Theterm“assetseligibleforcapitalization”referstothefixedassets,investmentrealestate,inventoriesandotherassets,ofwhichtheacquisitionandconstructionorproductionmaytakequitealongtimetogetreadyforitsintendeduseorforsale.Wheretheacquisitionandconstructionorproductionofaqualifiedassetisinterruptedabnormallyandtheinterruptionperiodlastsformorethan3months,thecapitalizationoftheborrowingcostsshallbesuspended.
18.IntangibleAssets
(1)IntangibleassetsTheterm“intangibleasset”referstotheidentifiablenon-monetaryassetspossessedorcontrolledbyenterpriseswhichhavenophysicalshape.Theintangibleassetsshallbeinitiallymeasuredaccordingtoitscost.Thecostsrelatedwiththeintangibleassets,iftheeconomicbenefitsrelatedtointangibleassetsarelikelytoflowintotheenterpriseandthecostofintangibleassetscanbemeasuredreliably,shallberecordedintothecostsofintangibleassets;otherwise,itshallberecordedintocurrentprofits
andlossesupontheoccurrence.Theuserightoflandgainedisusuallymeasuredasintangibleassets.Fortheself-developedandconstructedfactoriesandotherconstructions,therelatedexpendituresonuserightoflandandconstructioncostsshallberespectivelymeasuredasintangibleassetsandfixedassets.Forthepurchasedhousesandbuildings,therelatedpaymentshallbedistributedintothepaymentforuserightoflandandthepaymentforbuildings,ifitisdifficulttobedistributed,thewholepaymentshallbetreatedasfixedassets.Forintangibleassetswithafiniteservicelife,fromthetimewhenitisavailableforuse,thecostafterdeductingthesumoftheexpectedsalvagevalueandtheaccumulatedimpairmentprovisionshallbeamortizedbystraightlinemethodduringtheservicelife.Whiletheintangibleassetswithoutcertainservicelifeshallnotbeamortized.Attheendofperiod,theCompanyshallchecktheservicelifeandamortizationmethodofintangibleassetswithfiniteservicelife,ifthereisanychange,itshallberegardedasachangeoftheaccountingestimates.Besides,theCompanyshallchecktheservicelifeofintangibleassetswithoutcertainservicelife,ifthereisanyevidenceshowingthattheperiodofintangibleassetstobringtheeconomicbenefitstotheenterprisecanbeprospected,itshallbeestimatedtheservicelifeandamortizedinaccordancewiththeamortizationpoliciesforintangibleassetswithfiniteservicelife.
(2)R&DexpensesTheexpendituresforinternalresearchanddevelopmentprojectsofanenterpriseshallbeclassifiedintoresearchexpendituresanddevelopmentexpenditures.Theresearchexpendituresshallberecordedintotheprofitorlossforthecurrentperiod.Thedevelopmentexpendituresshallbeconfirmedasintangibleassetswhentheysatisfythefollowingconditionssimultaneously,andshallberecordedintoprofitorlossforthecurrentperiodwhentheydon’tsatisfythefollowingconditions.
①Itisfeasibletechnicallytofinishintangibleassetsforuseorsale;②Itisintendedtofinishanduseorselltheintangibleassets;
③Theusefulnessofmethodsforintangibleassetstogenerateeconomicbenefitsshallbeproved,includingbeingabletoprovethatthereisapotentialmarketfortheproductsmanufacturedbyapplyingtheintangibleassetsorthereisapotentialmarketfortheintangibleassetsitselfortheintangibleassetswillbeusedinternally;
④Itisabletofinishthedevelopmentoftheintangibleassets,andabletouseorselltheintangibleassets,withthesupportofsufficienttechnologies,financialresourcesandother
resources;⑤Thedevelopmentexpendituresoftheintangibleassetscanbereliablymeasured.Asforexpensesthatcan’tbeidentifiedasresearchexpendituresordevelopmentexpenditures,theoccurredR&Dexpensesshallbeallincludedincurrentprofitsandlosses.
(3)TestingmethodofimpairmentandwithdrawmethodofimpairmentprovisionofintangibleassetsFordetailsofthetestingmethodofimpairmentandwithdrawmethodofimpairmentprovisiononintangibleassets,seeNotesIV.20“Long-termassetsimpairment”.
19.Long-termDeferredExpensesLong-termdeferredexpensesrefertogeneralexpenseswiththeapportionedperiodoveroneyear(oneyearexcluded)thathaveoccurredbutattributabletothecurrentandfutureperiods.Long-termdeferredexpenseshallbeamortizedaveragelywithinbenefitperiod.
20.ImpairmentofLong-termAssetsFornon-currentfinancialAssetsoffixedAssets,projectsunderconstruction,intangibleAssetswithlimitedservicelife,investingrealestatewithcostmodel,long-termequityinvestmentofsubsidiaries,cooperativeenterprisesandjointventures,theCompanyshouldjudgewhetherdecreaseinvalueexistsonthedateofbalancesheet.Recoverableamountsshouldbetestedfordecreaseinvalueifitexists.OtherintangibleAssetsofreputationanduncertainservicelifeandothernon-accessibleintangibleassetsshouldbetestedfordecreaseinvaluenomatterwhetheritexists.Iftherecoverableamountislessthancarryingvalueinimpairmenttestresults,theprovisionforimpairmentofdifferencesshouldincludeinimpairmentloss.Recoverableamountswouldbethehigherofnetvalueofassetfairvaluedeductingdisposalchargesorpresentvalueofpredictedcashflow.Assetfairvalueshouldbedeterminedaccordingtonegotiatedsalespriceoffairtrade.Ifnosalesagreementexistsbutwithassetactivemarket,fairvalueshouldbedeterminedaccordingtotheBuyer’spriceoftheasset.Ifnosalesagreementorassetactivemarketexists,assetfairvaluecouldbeacquiredonthebasisofbestinformationavailable.Disposalexpensesincludelegalfees,taxes,cartageorotherdirectexpensesofmerchantableAssetsrelatedtoassetdisposal.PresentvalueofpredictedassetcashflowshouldbedeterminedbytheproperdiscountrateaccordingtoAssetsinserviceandpredictedcashflowoffinaldisposal.AssetdepreciationreservesshouldbecalculatedonthebasisofsingleAssets.IfitisdifficulttopredicttherecoverableamountsforsingleAssets,recoverableamountsshouldbedeterminedaccordingtothebelongingassetgroup.Assetgroupisthe
minimumassetcombinationproducingcashflowindependently.Inimpairmenttest,carryingvalueofthebusinessreputationinfinancialreportshouldbesharedtobeneficialassetgroupandassetgroupcombinationincollaborationofbusinessmerger.Itisshowninthetestthatifrecoverableamountsofsharedbusinessreputationassetgrouporassetgroupcombinationarelowerthanbookvalue,itshoulddeterminetheimpairmentloss.Impairmentlossamountshouldfirstlybedeductedandsharedtothecarryingvalueofbusinessreputationofassetgrouporassetgroupcombination,thendeductcarryingvalueofallassetsaccordingtoproportionsofothercarryingvalueofaboveassetsinassetgrouporassetgroupcombinationexceptbusinessreputation.Aftertheassetimpairmentlossisdetermined,recoverablevalueamountswouldnotbereturnedinfuture.
21.EmployeeCompensationEmployeecompensationoftheCompanymainlyincludesshort-termemployeecompensation,departurebenefits,demissionbenefitsandotherlong-termemployeecompensation.Ofwhich:
Short-termcompensationmainlyincludingsalary,bonus,allowancesandsubsidies,employeeservicesandbenefits,medicalinsurancepremiums,birthinsurancepremium,industrialinjuryinsurancepremium,housingfund,labourunionexpenditureandpersonneleducationfund,non-monetarybenefitsetc.Theshort-termcompensationactuallyhappenedduringtheaccountingperiodwhentheactivestaffofferingtheservicefortheCompanyshouldberecognizedasliabilitiesandisincludedinthecurrentgainsandlossesorrelevantassetscost.Ofwhichthenon-monetarybenefitsshouldbemeasuredaccordingtothefairvalue.Welfareafterdemissionmainlyincludessettingdrawingplan.Definedcontributionplansincludebasicendowmentinsurance,unemploymentinsuranceandannuity.Depositedamountsarechargedtorelevantassetcostsorcurrentprofitsandlossesduringtheperiodinwhichtheyareincurred.DefinedbenefitplanoftheCompanyisinternalearlyretirementplan.Accordingtoanticipatedaccumulativewelfareunit,theCompanymakesestimatesbyunbiasedandconsistentactuarialassumptionforthedemographicvariablesandfinancialvariables,measurestheobligationsproducedindefinedbenefitplans,anddeterminesthevestingperiod.Onbalancesheetdate,theCompanywilllistallobligationsindefinedbenefitplansaspresentvalueandincludecurrentservicecostsintocurrentprofitsandlosses.Whenterminatinglabourrelationsbeforeexpirationofcontract,orlayoffswith
compensations,andtheCompanycannotterminatethelabourrelationsunilaterallyorreducethedemissionwelfare,remunerationandliabilitiesproducedfromthedemissionwelfareshouldbedeterminedandincludedincurrentprofitsandlosseswhendeterminingthecostsofdemissionwelfareandrecombination.However,demissionwelfarenotfullypaidwithin12monthsafterannualReportingPeriodshouldbehandledthesameasotherlong-termemployees’payrolls.Theinsideemployeeretirementplanistreatedbyadoptingthesameprinciplewiththeabovedismissionwelfare.TheCompanywouldrecordedthesalaryandthesocialsecurityinsurancefeespaidandsoonfromtheemployee’sserviceterminativedatetonormalretirementdateintocurrentprofitsandlosses(dismissionwelfare)undertheconditionthattheymeettherecognitionconditionsofestimatedliabilities.Theotherlong-termwelfarethattheCompanyofferstothestaffs,ifmetwiththesettingdrawingplan,shouldbeaccountingdisposedaccordingtothesettingdrawingplan,whiletherestshouldbedisposedaccordingtothesettingrevenueplan.
22.ProvisionsTheCompanyshouldrecognizetherelatedobligationasaprovisionforliabilitywhentheobligationmeetsthefollowingconditions:(1)Thatobligationisapresentobligationoftheenterprise;(2)Itisprobablethatanoutflowofeconomicbenefitsfromtheenterprisewillberequiredtosettletheobligation;(3)Areliableestimatecanbemadeoftheamountoftheobligation.Onthebalancesheetdate,anenterpriseshalltakeintofullconsiderationoftherisks,uncertainty,timevalueofmoney,andotherfactorspertinenttotheContingenciestomeasuretheprovisionsinaccordancewiththebestestimateofthenecessaryexpensesfortheperformanceofthecurrentobligation.Whenallorsomeoftheexpensesnecessaryfortheliquidationofanprovisionsofanenterpriseisexpectedtobecompensatedbyathirdparty,thecompensationshouldbeseparatelyrecognizedasanassetonlywhenitisvirtuallycertainthatthereimbursementwillbeobtained.Besides,theamountrecognizedforthereimbursementshouldnotexceedthecarryingvalueoftheestimatedliabilities.
23.Revenue
(1)RevenuefromsellinggoodsNorevenuefromsellinggoodsmayberecognizedunlessthefollowingconditionsaremetsimultaneously:thesignificantrisksandrewardsofownershipofthegoodshavebeen
transferredtothebuyerbytheenterprise;theenterpriseretainsneithercontinuousmanagementrightthatusuallykeepsrelationwiththeownershipnoreffectivecontroloverthesoldgoods;therelevantamountofrevenuecanbemeasuredinareliableway;therelevanteconomicbenefitsmayflowintotheenterprise;andtherelevantcostsincurredortobeincurredcanbemeasuredinareliableway.Therecognitionofrevenuefromcommoditiesforthehomemarketwhenshippingthegoodsortransferringpropertyingoods;forgoodsexported,therevenueshallberecognizedoncethegoodsareclearedthroughcustomsanddeliveredtothecarrierdesignatedbythepurchaser;forgoodsdirectlytradedinoverseas,therevenueshallberecognizedwhencustomerspickupthegoodsorthegoodsaredeliveredtotheassignedplacebycustomers.
(2)ProvidinglabourservicesIftheCompanycanreliablyestimatetheoutcomeofatransactionconcerningthelabourservicesitprovides,itshallrecognizetherevenuefromprovidingservicesemployingthepercentage-of-completionmethodonthedateofthebalancesheet.Thecompletedproportionofatransactionconcerningtheprovidingoflabourservicesshallbedecidedbytheproportionofthelabourservicealreadyprovidedtothetotallabourservicetoprovide.Theoutcomeofatransactionconcerningtheprovidingoflabourservicescanbemeasuredinareliableway,meansthatthefollowingconditionsshallbemetsimultaneously:①Theamountofrevenuecanbemeasuredinareliableway;②Therelevanteconomicbenefitsarelikelytoflowintotheenterprise;③Thescheduleofcompletionunderthetransactioncanbeconfirmedinareliableway;and④Thecostsincurredortobeincurredinthetransactioncanbemeasuredinareliableway.Iftheoutcomeofatransactionconcerningtheprovidingoflabourservicescannotbemeasuredinareliableway,therevenuefromtheprovidingoflabourservicesshallberecognizedinaccordancewiththeamountofthecostoflabourservicesincurredandexpectedtobecompensated,andmakethecostoflabourservicesincurredasthecurrentexpenses.Ifitispredictedthatthecostoflabourservicesincurredcouldn’tbecompensated,thusnorevenueshallberecognized.WhereacontractoragreementsignedbetweenCompanyandotherenterprisesconcernssellinggoodsandprovidingoflabourservices,ifthepartofsaleofgoodsandthepartofprovidinglabourservicescanbedistinguishedfromeachotherandcanbemeasuredrespectively,thepartofsaleofgoodsandthepartofprovidinglabourservicesshallbetreatedrespectively.Ifthepartofsellinggoodsandthepartofprovidinglabourservicescannotbedistinguishedfromeachother,orifthepartofsaleofgoodsandthepartof
providinglabourservicescanbedistinguishedfromeachotherbutcannotbemeasuredrespectively,bothpartsshallbeconductedassellinggoods.
(3)ConstructioncontractincomeUndercircumstanceofthattheoutcomeoftheconstructioncontractcanbereliablyestimated,thecontractincomeandcostsareconfirmedonthebalancesheetdateinaccordancewiththepercentageofcompletionmethod.Thecompletionofthecontractisdeterminedbytheproportionoftheincurredlaborcoststotheestimatedtotalcosts.Thattheresultoftheconstructioncontractcanbereliablyestimatedreferstothat:①thetotalincomeofthecontractcanbereliablymeasured;②theeconomicbenefitsrelatedtothecontractarelikelytoflowintotheenterprise;③Theactualcontractcostscanbeclearlydifferentiatedandreliablymeasured;④thecompletionofthecontractandthecostsneededtocompletethecontractcanbereliablydetermined.Iftheresultoftheconstructioncontractcannotbereliablyestimated,butthecontractcostcanberecovered,thecontractincomecanbeconfirmedaccordingtotheactualcontractcostthatcanberecovered,andthecontractcostisconfirmedasthecontractexpenseinthecurrentoccurringperiod;forthecontractcostthatcannotberecovered,itisimmediatelyconfirmedasthecontractcostbutnotthecontractincomewhenitoccurs.Iftheuncertaintiesthatmaketheresultsoftheconstructioncontractcannotbereliablyestimatedarenolongerinexistence,theincomeandexpensesrelatedtotheconstructioncontractaredeterminedaccordingtothepercentageofcompletionmethod.Iftheestimatedtotalcostofthecontractexceedsthetotalcontractincome,theestimatedlossisconfirmedasthecurrentexpense.Theaccumulatedcostsincurredinthecontractinprogress,theaccumulatedrecognizedgrossprofit(loss)andthesettledpricearestatedinthebalancesheetasnetoffset.Thepartofthesumoftheaccumulatedcostsincurredinthecontractinprogressandtheaccumulatedrecognizedgrossprofit(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.Incasethattheprojectcompanyfailstoprovideactualconstructionservicesandcontractstheinfrastructureconstructiontootherparties,therewillbenorecognitionofrevenuefromconstructionservices,andtheprojectpricepaidintheconstructionprocessisrecognizedasfinancialassetsorintangibleassetsinaccordancewiththecontract.
(5)InterestrevenueTheamountofinterestrevenueshouldbemeasuredandconfirmedinaccordancewiththelengthoftimeforwhichtheCompany’smonetaryfundisusedbyothersandtheagreedinterestrate.
(6)PropertyleasingrevenueFortherecognitionmethodofthepropertyleasingrevenue,pleaserefertoNotesIV.26.
(7)Factoringbusinessrevenue
Takethepaid-infactoringpaymentasthefairvaluetocarryoutinitialmeasurement.Subsequentmeasurementshallbecarriedoutaspertheeffectiveinterestmethodaccordingtotheamortizedcost.Takethebalancebetweenthefairvalueinitiallyconfirmedandtransferredamountofaccountsreceivableorfacevalueofnotesreceivableastheinterestincomebyeffectiveinterestsmethodandamortizedcostsduringthefinancingperiodortherestcreditperiod;interestincomeshallberecognizedbystraight-linemethodifitisduewithin1year.Theprofitsandlossesfromterminationofrecognition,impairment,andamortizationshallbeincludedintothecurrentprofitsandlosses.
(8)FinanceleaseincomeAsafinanciallessor,theCompanyrecognizes,onthebeginningdateoftheleaseterm,thesumoftheminimumrentalreceivablesontheleasestartdateandtheinitialdirectcostsastheentryvalueoffinancialleasereceivable,andrecordstheunguaranteedresidentialvalue.Thedifferencebetweenthesumofminimumrentalreceivablesplustheunguaranteedresidentialvalueandthepresentvalueisrecognizedasunrealizedfinancingrevenue.Unrealizedfinancingrevenueismeasuredusingtherealinterestratemethodduringtheleasetermandrecognizedascurrentfinancingleaserevenue.Contingentrentsareincludedincurrentprofitsandlosseswhentheyactuallyoccur.
24.GovernmentSubsidiesAgovernmentsubsidymeansthemonetaryornon-monetaryassetsobtainedfreebytheCompanyfromthegovernment,butexcludingthecapitalinvestedbythegovernmentastheinvestorwithcorrespondingowner’sequity.Governmentsubsidiesconsistofthegovernmentsubsidiespertinenttoassetsandgovernmentsubsidiespertinenttoincome.GovernmentsubsidythatisobtainedbythisCompanyusedforpurchasingoracquisitionandconstruction,orformingthelong-termassetsbyotherways,whichisconfirmedthegovernmentsubsidyrelatedtoassets;Othergovernmentsubsidiesshallbedefinedasthegovernmentsubsidythatrelatedwithinterest.Ifitdoesnotclearthesubsidyobjectinthegovernmentdocument,thegrantswillbedividedbasedonthefollowingmodesintogovernmentsubsidyrelatedtoearningsandgovernmentsubsidyrelatedtoassets:(1)Iftheparticularprojectofthegrantsisclearinthegovernmentdocument,makeadivisionaccordingtotherelativeproportionofexpenseamountoftheformedassetsinthebudgetoftheparticularprojectandtheexpenseamountincludedinthecost,shallreviewthedivisionratiorequiredateachbalancesheetdateandmakechangesifnecessary;(2)Onlymakegeneralstatementsfortheapplicationinthegovernmentdocument,fornotspecifyingtheparticularitem,asthegovernmentalsubsidyrelatedtoearnings.Ifagovernmentsubsidyisamonetaryasset,itshallbemeasured
inthelightofthereceivedorreceivableamount.Ifagovernmentsubsidyisanon-monetaryasset,itshallbemeasuredatitsfairvalue.Ifitsfairvaluecannotbeobtainedinareliableway,itshallbemeasuredatitsnominalamount.Thegovernmentsubsidiesmeasuredattheirnominalamountsshallbedirectlyincludedinthecurrentprofitsandlosses.WhenthisCompanyactuallyreceivedthegovernmentsubsidy,recognizeandmeasureastheactualmeasuredamount.Ifthegovernmentgrantsrelatedtoassetsarerecognizedasdeferredincomeandareincludedintheprofitsandlossesbyinstallmentsinareasonableandsystematicwaywithintheservicelifeofunderlyingassets.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)DeferredincometaxassetsanddeferredincometaxliabilitiesThedifferencebetweenthecarryingvalueofcertainassetsandliabilitiesandtheirtaxassessmentbasis,aswellasthetemporarydifferenceoccursfromthedifferencebetweenthecarryingvalueoftheitemswhichnotberecognizedasassetsandliabilitiesbutcouldconfirmtheirtaxassessmentbasisaccordingtotheregulationsofthetaxlaw,thedeferredincometaxassetsandthedeferredincometaxliabilitiesshouldberecognizedbyadoptingliabilitieslawofthebalancesheet.Nodeferredtaxliabilityisrecognizedforatemporarydifferencearisingfromtheinitialrecognitionofgoodwill,theinitialrecognitionofassetsorliabilitiesduetoatransactionotherthanabusinesscombination,whichaffectsneitheraccountingprofitnortaxableprofit(ordeductibleloss).Besides,nodeferredtaxassetsisrecognizedforthetaxabletemporarydifferencesrelatedtotheinvestmentsofsubsidiarycompanies,associatedenterprisesandjointenterprises,andtheinvestingenterprisecancontrolthetimeofthereverseoftemporarydifferencesaswellasthetemporarydifferencesareunlikelytobereversedintheexceptedfuture.Otherwise,theCompanyshouldrecognizethedeferredincometaxliabilitiesarisingfromothertaxabletemporarydifference.Nodeferredtaxableassetsshouldberecognizedforthedeductibletemporarydifferenceofinitialrecognitionofassetsandliabilitiesarisingfromthetransactionwhichisnotbusinesscombination,theaccountingprofitswillnotbeaffected,norwillthetaxableamountordeductiblelossbeaffectedatthetimeoftransaction.Besides,nodeferredtaxableassetsshouldberecognizedforthedeductibletemporarydifferencerelatedtotheinvestmentsofthesubsidiarycompanies,associatedenterprisesandjointenterprises,whicharenotlikelytobereversedintheexpectedfutureorisnotlikelytoacquireanyamountoftaxableincometaxthatmaybeusedformakingupsuchdeductibletemporarydifferences.Otherwise,theCompanyshallrecognizethedeferredincometaxassetsarisingfromadeductibletemporarydifferencebasingontheextentoftheamountofthetaxableincomethatislikelytobeacquiredtomakeupsuchdeductibletemporarydifferencesForanydeductiblelossortaxdeductionthatcanbecarriedforwardtothenextyear,thecorrespondingdeferredincometaxassetshallbedeterminedtotheextentthattheamountoffuturetaxableincometobeoffsetbythedeductiblelossortaxdeductiontobelikelyobtained.Onthebalancesheetdate,thedeferredincometaxassetsandthedeferredincometaxliabilitiesshallbemeasuredatthetaxrateapplicabletotheperiodduringwhichtheassetsareexpectedtoberecoveredortheliabilitiesareexpectedtobesettled.
Thecarryingvalueofdeferredincometaxassetsshallbereviewedateachbalancesheetdate.Ifitisunlikelytoobtainsufficienttaxableincometooffsetagainstthebenefitofthedeferredincometaxasset,thecarryingvalueofthedeferredincometaxassetsshallbewrittendown.Anysuchwrite-downshouldbesubsequentlyreversedwhereitbecomesprobablethatsufficienttaxableincomewillbeavailable.
(3)IncometaxexpensesIncometaxexpensesincludecurrentincometaxanddeferredincometax.Therestcurrentincometaxandthedeferredincometaxexpensesorrevenueshouldbeincludedintocurrentgainsandlossesexceptforthecurrentincometaxandthedeferredincometaxrelatedtothetransactionandeventsthatbeconfirmedasothercomprehensiveincomeorbedirectlyincludedintheshareholders’equitywhichshouldbeincludedinothercomprehensiveincomeorshareholders’equityaswellasthecarryingvalueforadjustingthegoodwillofthedeferredincometaxoccursfromthebusinesscombination.
(4)OffsetofincometaxThecurrentincometaxassetsandliabilitiesoftheCompanyshouldbelistedbythewritten-offnetamountwhichintendtoexecutesthenetamountsettlementaswellastheassetsacquiringandliabilitiesliquidationatthesametimewhileownsthelegalrightsofsettlingthenetamount.ThedeferredincometaxassetsandliabilitiesoftheCompanyshouldbelistedaswritten-offnetamountwhenhavingthelegalrightsofsettlingthecurrentincometaxassetsandliabilitiesbynetamountandthedeferredincometaxandliabilitiesisrelevanttotheincometaxwhichbecollectedfromthesametaxpayingbodiesbythesametaxcollectionandadministrationdepartmentorisrelevanttothedifferenttaxpayingbodiesbutduringeachperiodwhichthereissignificantreverseofthedeferredincomeassetsandliabilitiesinthefutureandamongwhichtheinvolvedtaxpayingbodiesintendtosettlethecurrentincometaxandliabilitiesbynetamountorareatthesametimeacquiretheassetaswellasliquidatetheliabilities.
26.FinancingLeasingFinancingleasingvirtuallytransferredthewholerisksandleasingofthecompensationrelatedtotheassetsownershipandtheirownershipmayeventuallybetransferredormaybenot.Otherleasingexceptforthefinancingleasingisoperatingleasing.
(1)BusinessofoperatingleasesrecordedbytheCompanyasthelesseeTherentexpensesfromoperatingleasesshallberecordedbythelesseeintherelevantasset
costsortheprofitsandlossesofthecurrentperiodbyusingthestraight-linemethodovereachperiodoftheleaseterm.Theinitialdirectcostsshallberecognizedastheprofitsandlossesofthecurrentperiod.Thecontingentrentsshallberecordedintotheprofitsandlossesofthecurrentperiodinwhichtheyactuallyarise.
(2)BusinessofoperatingleasesrecordedbytheCompanyasthelessorTherentincomesfromoperatingleasesshallberecognizedastheprofitsandlossesofthecurrentperiodbyusingthestraight-linemethodovereachperiodoftheleaseterm.Theinitialdirectcostsofgreatamountshallbecapitalizedwhenincurred,andberecordedintocurrentprofitsandlossesinaccordancewiththesamebasisforrecognitionofrentincomesoverthewholeleaseterm.Theinitialdirectcostsofsmallamountshallberecordedintocurrentprofitsandlosseswhenincurred.Thecontingentrentsshallberecordedintotheprofitsandlossesofthecurrentperiodinwhichtheyactuallyarise.
(3)BusinessoffinanceleasesrecordedbytheCompanyasthelesseeOntheleasebeginningdate,theCompanyshallrecordtheloweroneofthefairvalueoftheleasedassetandthepresentvalueoftheminimumleasepaymentsontheleasebeginningdateastheenteringvalueinanaccount,recognizetheamountoftheminimumleasepaymentsastheenteringvalueinanaccountoflong-termaccountpayable,andtreatthebalancebetweentherecordedamountoftheleasedassetandthelong-termaccountpayableasunrecognizedfinancingcharges.Besides,theinitialdirectcostsdirectlyattributabletotheleaseditemincurredduringtheprocessofleasenegotiatingandsigningtheleasingagreementshallberecordedintheassetvalueofthecurrentperiod.Thebalancethroughdeductingunrecognizedfinancingchargesfromtheminimumleasepaymentsshallberespectivelystatedinlong-termliabilitiesandlong-termliabilitiesduewithin1year.Unrecognizedfinancingchargesshallbeadoptedbytheeffectiveinterestratemethodintheleaseterm,soastocalculateandrecognizecurrentfinancingcharges.Thecontingentrentsshallberecordedintotheprofitsandlossesofthecurrentperiodinwhichtheyactuallyarise.
(4)BusinessoffinanceleasesrecordedbytheCompanyasthelessorOnthebeginningdateoftheleaseterm,theCompanyshallrecognizethesumoftheminimumleasereceiptsontheleasebeginningdateandtheinitialdirectcostsastheenteringvalueinanaccountofthefinancingleasevaluesreceivable,andrecordtheunguaranteedresidualvalueatthesametime.Thebalancebetweenthesumoftheminimumleasereceipts,theinitialdirectcostsandtheunguaranteedresidualvalueandthesumoftheirpresentvaluesshallberecognizedasunrealizedfinancingincome.Thebalancethroughdeductingunrealizedfinancingincomesfromthefinanceleaseaccountsreceivableshallberespectively
statedinlong-termclaimsandlong-termclaimsduewithin1year.Unrecognizedfinancingincomesshallbeadoptedbytheeffectiveinterestratemethodintheleaseterm,soastocalculateandrecognizecurrentfinancingrevenues.Thecontingentrentsshallberecordedintotheprofitsandlossesofthecurrentperiodinwhichtheyactuallyarise.
27.OtherMainAccountingPoliciesandEstimates
(1)TerminationofoperationTerminationofoperationreferstoaseparatelyidentifiableconstituentpartthatsatisfiesoneofthefollowingconditionsthathasbeendisposedofbytheCompanyorisclassifiedasheld-for-sale:
?Thisconstituentpartrepresentsanindependentmainbusinessoraseparatemainbusinessarea;?Thisconstituentpartispartofanassociatedplanthatisintendedtobedisposedofinanindependentmainbusinessoraseparatemajorbusinessarea;?Thisconstituentpartisasubsidiarythatisspecificallyacquiredforresale.Foraccountingmethodofterminationofoperation,pleaserefertorelevantdescriptionofNotesIV.12“Assetsheldforsaleanddisposalgroup”
(2)HedgingAccountingToavoidcertainrisks,theCompanycarriesouthedgingofsomefinancialinstrumentsashedgingtools.TheCompanytreatshedgingthatmeetsspecifiedconditionsusinghedgingaccountingmethod.TheCompany'shedgingisfair-valuehedging,andtreatsthehedgingofforeignexchangeriskwithdefiniteundertakingatfairvalue.Atthebeginningofhedging,theCompanyrecordstherelationshipbetweenhedgingtoolsandhedgeditems,riskmanagementobjectivesandstrategiesfordifferenthedgingtransactions.Inaddition,atthebeginningandafterthehedging,theCompanyconductscontinuousevaluationoftheeffectivenessofhedgingtocheckwhetherthehedgingishighlyeffectiveduringtheaccountingperiodinwhichthehedgingrelationshipisdesignated.Fairvaluehedgingisaqualifiedderivativeinstrumentdesignatedforfairvaluehedging,andthegainsorlossesresultingfromitschangesinfairvalueareincludedinthecurrentprofitsandlosses.Thegainsorlossesofthehedgeditemsduetohedgedrisksarealsoincludedinthecurrentprofitsandlosses,andthecarryingvalueofthehedgeditemsisalsoadjusted.WhentheCompanycancelsthedesignationofhedgingrelationship,thehedginginstrumentexpiresorissold,thecontractisterminatedorexercised,ortheconditionsarenolongersatisfied,theuseofhedgingaccountingisterminated.
28.ChangesinMainAccountingPoliciesandEstimates
(1)Changesofaccountingpolicies
TheMinistryofFinanceissuedtheAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments(revisedin2017)(CK[2017]No.7),AccountingStandardsforBusinessEnterprisesNo.23-TransferofFinancialAssets(revisedin2017)(CK[2017]No.8),andAccountingStandardsforBusinessEnterprisesNo.24-HedgeAccounting(revisedin2017)(CK[2017]No.9)on31March2017,andissuedtheAccountingStandardsforBusinessEnterprisesNo.37-PresentationofFinancialInstruments(revisedin2017)(CK[2017]No.14)on2May2017(collectivelyreferredtoas“NewFinancialInstrumentsStandards”).EnterprisesdomesticallylistedarerequiredtoimplementtheNewFinancialInstrumentStandardssince1January2019.Approvedonthe7
th
Meetingofthe9
thBoardofDirectorsoftheCompanyandtheCompanystartstoimplementaforesaidNewFinancialInstrumentStandardssince1January2019.AllfinancialassetsconfirmedpursuanttoNewFinancialInstrumentStandardsshallbemeasuredaspertheamortizedcostorfairvaluesubsequently.OntheexecutiondateofNewFinancialInstrumentStandards,thebusinessmodeloffinancialassetsisevaluatedandmanagedonthebasisofexistingfactandconditionoftheCompanyonthatdayandthecontractualcashflowcharacteristicsofthefinancialassetsareevaluatedonthebasisofthefactandconditionupontheinitialrecognitionoffinancialassets.Thefinancialassetsaredividedintothreecategories:Thefinancialassetsmeasuredaspertheamortizedcosts,measuredasperthefairvaluewiththechangeincludedinothercomprehensiveincomes,measuredasperthefairvaluewiththechangeincludedinthecurrentprofitandloss.Wherein,fortheequityinstrumentinvestmentmeasuredasperthefairvaluewithchangeincludedinothercomprehensiveincomes,whensuchfinancialassetscarryoutthederecognition,theaccumulativegainsorlossincludedinothercomprehensiveincomespreviouslywillbetransferredtotheretainedearningsfromothercomprehensiveincomesandaren'tincludedinthecurrentprofitandloss.PursuanttoNewFinancialInstrumentStandards,theCompany,onthebasisofexpectedcreditloss,calculatesandwithdrawstheimpairmentreserveofthefinancialassetsmeasuredattheamortizedcost,thedebtinstrumentinvestmentmeasuredatfairvaluewithchangeincludedinothercomprehensiveincomes,theleasereceivables,contractassetsandfinancialguaranteecontract,andconfirmsthecreditimpairmentloss.TheCompanytracesandappliestheNewFinancialInstrumentStandards,andmaynotconducttherestatementtotheinconsistencebetweenthepreviouscomparativefinancialstatementdatainvolvedintheclassificationandmeasurement(includingtheimpairment)andNewFinancialInstrumentStandards.Therefore,forthecumulativeimpactofthe
standardimplementationforthefirsttime,theCompanyadjuststheretainedearningsorothercomprehensiveincomeatthebeginningof2019andtheamountofotherrelateditemsinthefinancialstatements,andthefinancialstatementsprioryearswerenotrestated.TheimpactsontheCompanyduetotheimplementationoftheNewFinancialInstrumentStandardsareasfollows:
①ComparativeStatementsofClassificationandMeasurementofFinancialInstrumentsbeforeandaftertheFirstExecutionDateA.InfluenceonConsolidatedFinancialStatements
31December2018(beforeadjustment)
| 31December2018(beforeadjustment) | 1January2019(afteradjustment) | ||||
| Item | Measurementcategory | Carryingvalue | Item | Measurementcategory | Carryingvalue |
| Monetarycapital | Amortizedcost | 4,348,144,129.53 | Monetarycapital | Amortizedcost | 4,348,144,129.53 |
| Financialassetsatfairvaluethroughprofitorloss | Measuredatfairvalueandchangesthereofrecordedintothecurrentprofitofloss | 5,464,984.92 | Tradingfinancialassets | Measuredatfairvalueandchangesthereofrecordedintothecurrentprofitofloss | 5,464,984.92 |
| Notesreceivable | Amortizedcost | 3,329,711,954.15 | Notesreceivable | Amortizedcost | 3,136,050,327.88 |
| Financingbackedbyaccountsreceivable | Measuredatfairvalueandchangesthereofrecordedintoothercomprehensiveincome | 193,661,626.27 | |||
| Accountsreceivable | Amortizedcost | 4,458,053,586.42 | Accountsreceivable | Amortizedcost | 4,457,458,904.32 |
| Financingbackedbyaccountsreceivable | Measuredatfairvalueandchangesthereofrecordedintoothercomprehensiveincome | - | |||
| Otherreceivables | Amortizedcost | 406,196,649.48 | Otherreceivables | Amortizedcost | 403,907,076.96 |
| Available-for-salefinancial | Amortizedcost | 633,664,881.33 | Tradingfinancialassets | Measuredatfairvalueandchanges | 61,494,666.97 |
assets
| assets | thereofrecordedintothecurrentprofitofloss | ||||
| Otherequityinstrumentsinvestment | Measuredatfairvalueandchangesthereofrecordedintoothercomprehensiveincome | 23,940,214.36 | |||
| Othernon-currentfinancialassets | Measuredatfairvalueandchangesthereofrecordedintothecurrentprofitofloss | 548,230,000.00 | |||
| Long-termreceivables | Amortizedcost | 390,793,038.05 | Long-termreceivables | Amortizedcost | 390,793,038.05 |
| Financialliabilitiesatfairvaluethroughprofitorloss | Measuredatfairvalueandchangesthereofrecordedintothecurrentprofitorloss | 2,459,603.25 | Tradingfinancialliabilities | Measuredatfairvalueandchangesthereofrecordedintothecurrentprofitorloss | 2,459,603.25 |
B.InfluenceontheCompany’sFinancialStatements
| 31December2018(beforeadjustment) | 1January2019(afteradjustment) | ||||
| Item | Measurementcategory | Carryingvalue | Item | Measurementcategory | Carryingvalue |
| Monetarycapital | Amortizedcost | 2,124,335,536.69 | Monetarycapital | Amortizedcost | 2,124,335,536.69 |
| Financialassetsatfairvaluethroughprofitorloss | Measuredatfairvaluethroughprofitorloss | 5,464,984.92 | Tradingfinancialassets | Measuredatfairvalueandchangesthereofrecordedintothecurrentprofitorloss | 5,464,984.92 |
| Notesreceivable | Amortizedcost | 2,181,466,683.90 | Notesreceivable | Amortizedcost | 2,181,166,683.90 |
| 7,427,246,429.42 | Financingbackedbyaccounts | Measuredatfairvalueandchanges | 300,000.00 | ||
receivable
| receivable | thereofrecordedintoothercomprehensiveincome | ||||
| Accountsreceivable | Amortizedcost | 6,661,693,463.33 | Accountsreceivable | Amortizedcost | 7,426,742,836.53 |
| Financingbackedbyaccountsreceivable | Measuredatfairvalueandchangesthereofrecordedintoothercomprehensiveincome | - | |||
| Otherreceivables | Amortizedcost | 326,164,881.33 | Otherreceivables | Amortizedcost | 6,660,069,551.06 |
| Available-for-salefinancialassets | Amortizedcost | 2,459,603.25 | Tradingfinancialassets | Measuredatfairvalueandchangesthereofrecordedintothecurrentprofitofloss | 61,494,666.97 |
| Otherequityinstrumentsinvestment | Measuredatfairvalueandchangesthereofrecordedintoothercomprehensiveincome | 14,440,214.36 | |||
| Othernon-currentfinancialassets | Measuredatfairvalueandchangesthereofrecordedintothecurrentprofitofloss | 250,230,000.00 | |||
| Financialliabilitiesatfairvaluethroughprofitorloss | Measuredatfairvalueandchangesthereofrecordedintothecurrentprofitorloss | 2,459,603.25 | Tradingfinancialliabilities | Measuredatfairvalueandchangesthereofrecordedintothecurrentprofitorloss | 2,459,603.25 |
②ReconciliationStatementsonAdjustmentofCarryingValueofOriginalFinancialInstrumentstothatofNewFinancialInstrumentsClassifiedandMeasuredinAccordancewithNewFinancialInstrumentsStandardsontheFirstExecutionDateA.InfluenceonConsolidatedFinancialStatements
| Item | 31December2018(beforeadjustment) | Reclassified | Remeasured | 1January2019(afteradjustment) |
Amortizedcost:
| Amortizedcost: | ||||
| Notesreceivable | 3,329,711,954.15 | |||
| Less:transferredtotheitemthatmeasuredatfairvalueandchangesthereofrecordedintoothercomprehensiveincome(financingbackedbyaccountsreceivable) | 193,661,626.27 | |||
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | 3,136,050,327.88 |
| Accountsreceivable | 4,458,053,586.42 | |||
| Remeasurement:provisionforexpectedcreditlosses | 594,682.10 | |||
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | 4,457,458,904.32 |
| Otherreceivables | 406,196,649.48 | |||
| Remeasurement:provisionforexpectedcreditlosses | 2,289,572.52 | |||
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | 403,907,076.96 |
| Tradingfinancialassets | ||||
| Add:transferredfromfinancialassetsatfairvaluethroughprofitorloss(classifiedaccordingtooriginalstandards) | 5,464,984.92 | |||
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | 5,464,984.92 |
| Available-for-sale | 633,664,881.33 |
financialassets
| financialassets | ||||
| Less:transferredtotheitemmeasuredatfairvalueandchangesthereofrecordedintothecurrentprofitorloss | 609,724,666.97 | |||
| Less:transferredtotheitemmeasuredatfairvalueandchangesthereofrecordedintoothercomprehensiveincome | 23,940,214.36 | |||
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | - |
| Measuredatfairvalueandchangesthereofrecordedintoothercomprehensiveincome: | - | |||
| Financingbackedbyaccountsreceivable | —— | |||
| Transferredfromnotesreceivable | 193,661,626.27 | |||
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | - | 193,661,626.27 |
| Tradingfinancialliabilities | - | |||
| Add:transferredfromfinancialliabilitiesatfairvaluethroughprofitorloss(classifiedaccordingtooriginalstandards) | 2,459,603.25 | |||
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | 2,459,603.25 |
B.InfluenceontheCompany’sFinancialStatements
Item
| Item | 31December2018(beforeadjustment) | Reclassified | Remeasured | 1January2019(afteradjustment) |
| Amortizedcost: | ||||
| Notesreceivable | 2,181,466,683.90 | |||
| Less:transferredtotheitemthatmeasuredatfairvalueandchangesthereofrecordedintoothercomprehensiveincome(financingbackedbyaccountsreceivable) | 300,000.00 | |||
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | 2,181,166,683.90 |
| Accountsreceivable | 7,427,246,429.42 | |||
| Remeasurement:provisionforexpectedcreditlosses | 503,592.89 | |||
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | 7,426,742,836.53 |
| Otherreceivables | 6,661,693,463.33 | |||
| Remeasurement:provisionforexpectedcreditlosses | 1,623,912.27 | |||
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | 6,660,069,551.06 |
| Tradingfinancialassets | ||||
| Add:transferredfromfinancialassetsatfairvaluethroughprofitorloss(classifiedaccordingtooriginalstandards) | 5,464,984.92 | |||
| Balancepresentedaccordingtonew | 5,464,984.92 |
financialinstrumentsstandards
financialinstrumentsstandardsAvailable-for-salefinancialassets
| Available-for-salefinancialassets | 326,164,881.33 | |||
| Less:transferredtotheitemmeasuredatfairvalueandchangesthereofrecordedintothecurrentprofitorloss | 311,724,666.97 | |||
| Less:transferredtotheitemmeasuredatfairvalueandchangesthereofrecordedintoothercomprehensiveincome | 14,440,214.36 | |||
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | - |
| Measuredatfairvalueandchangesthereofrecordedintoothercomprehensiveincome: | ||||
| Financingbackedbyaccountsreceivable | —— | |||
| Transferredfromnotesreceivable | 300,000.00 | |||
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | - | 300,000.00 |
| Tradingfinancialliabilities | —— | |||
| Add:transferredfromfinancialliabilitiesatfairvaluethroughprofitorloss(classifiedaccordingtooriginalstandards) | 2,459,603.25 | |||
| Balancepresentedaccordingtonewfinancialinstruments | 2,459,603.25 |
standards
③ReconciliationStatementsonProvisionforFinancialAssetsImpairmentontheFirstExecutionDateA.InfluenceonConsolidatedFinancialStatements
standards
Measurementcategory
| Measurementcategory | 31December2018(beforeadjustment) | Reclassified | Remeasured | 1January2019(afteradjustment) |
| Amortizedcost: | ||||
| Provisionforimpairmentofnotesreceivable | ||||
| Provisionforimpairmentofaccountsreceivable | 414,925,927.88 | - | 594,682.10 | 415,520,609.98 |
| Provisionforimpairmentofotherreceivables | 213,129,067.76 | - | 2,289,572.52 | 215,418,640.28 |
| Provisionforimpairmentofavailable-for-salefinancialassets | 10,747,785.64 | -10,747,785.64 | - | - |
B.InfluenceontheCompany’sFinancialStatements
| Measurementcategory | 31December2018(beforeadjustment) | Reclassified | Remeasured | 1January2019(afteradjustment) |
| Amortizedcost: | ||||
| Provisionforimpairmentofaccountsreceivable | 246,549,012.31 | - | 503,592.89 | 247,052,605.20 |
| Provisionforimpairmentofotherreceivables | 187,825,380.06 | - | 1,623,912.27 | 189,449,292.33 |
| Provisionforimpairmentofavailable-for-salefinancialassets | 4,997,785.64 | -4,997,785.64 | - | - |
(2)ChangeofaccountingestimatesTherewasnoanychangeofaccountingestimateoftheCompanyintheReportingPeriod.
29.CriticalAccountingJudgmentsandEstimatesDuetotheinsideuncertaintyofoperatingactivity,theCompanyneededtomakejudgments,estimatesandassumptiononthecarryingvalueoftheaccountswithoutaccuratemeasurementduringtheemploymentofaccountingpolicies.Andthesejudgments,estimatesandassumptionweremadebasingonthepriorexperienceoftheseniorexecutivesofthe
Company,aswellasinconsiderationofotherfactors.Thesejudgments,estimatesandassumptionwouldalsoaffectthereportamountofincome,costs,assetsandliabilities,aswellasthedisclosureofcontingentliabilitiesonbalancesheetdate.However,theuncertaintyoftheseestimateswaslikelytocausesignificantadjustmentonthecarryingvalueoftheaffectedassetsandliabilities.TheCompanywouldcheckperiodicallytheabovejudgments,estimatesandassumptiononthebasisofcontinuingoperation.Forthechangesinaccountingestimatesonlyaffectedonthecurrentperiod,theinfluenceshouldberecognizedattheperiodofchangeoccurred;forthechangesinaccountingestimatesaffectedthecurrentperiodandalsothefutureperiod,theinfluenceshouldberecognizedattheperiodofchangeoccurredandfutureperiod.Onthebalancesheetdate,theCompanyneededtomakejudgments,estimatesandassumptionontheaccountsinthefollowingimportantitems:
(1)RevenueRecognition-ConstructionContractIftheconstructioncontractresultscanbereliablyestimated,theCompanyadoptsthemethodofcompletionpercentagetoconfirmthecontractincomeonthebalancesheetdate.ThepercentageofcontractcompletionisconfirmedinaccordancewiththemethoddescribedinNoteIV,233,Revenue,andiscumulativelycalculatedineachfiscalyearinwhicheachconstructioncontractisexecuted.Significantjudgmentisrequiredindeterminingthepercentageofcompletion,contractcostsincurred,estimatedtotalcontractincomeandtotalcost,andcontractrecyclability,andtheprojectmanagementpersonnelusuallymakejudgmentsmainlybasedonpastexperienceandwork.Theestimatedtotalcontractincomeandtotalcost,aswellasestimatedchangesincontractexecutionresults,mayhaveanimpactonoperatingincome,operatingcosts,andprofitorlossforthecurrentorsubsequentperiodofthechange,andmayhaveasignificantimpact.
(2)CategorizationofleasingInaccordancewithAccountingStandardsforEnterprisesNo.21–Leasing,theCompanycategorizedtheleasingintooperatingleaseandfinancelease.Duringthecategorization,themanagementlevelneededtomakeanalysisandjudgmentonwhetheralltheriskandcompensationrelatedwiththeleasedassetshadbeentransferredtotheleasee,orwhethertheCompanyhadalreadyundertakenalltheriskandcompensationrelatedwiththeleasedassets.
(3)Financialassetsimpairment
IftheCompanyadoptstheexpectedcreditlossmodeltoevaluatefinancialinstrumentimpairment,it'snecessarytomakesignificantjudgmentsandestimatesontheexpectedcreditlossmodel,andallreasonableandwell-foundedinformationneedstobetakenintoaccount,includingforward-lookinginformation.Whensuchjudgmentsandestimatesaremade,theexpectedchangesinthedebtor'screditriskareinferredbasedonhistoricaldataincombinationwitheconomicpolicies,macroeconomicindicators,industryrisks,externalmarketconditions,technologicalenvironment,andchangesincustomercircumstances.
(4)ProvisionforfallingpriceofinventoriesInaccordancewiththeaccountingpoliciesofinventories,fortheinventoriesthatthecostsweremorethanthenetrealizablevalueaswellasout-of-dateanddull-saleinventories,theCompanywithdrawntheprovisionforfallingpriceofinventoriesontheloweronebetweencostsandnetrealizablevalue.Evaluatingthefallingpriceofinventoriesneededthemanagementlevelgainthevalidevidenceandtakefullconsiderationofthepurposeofinventories,influenceofeventsafterbalancesheetdateandotherfactors,andthenmaderelevantjudgmentsandestimates.Theactualamountandthedifferenceofpreviousestimateswouldaffectthecarryingvalueofinventoriesandthewithdrawalandreversalonprovisionforbaddebtsofinventoriesduringtheperiodofestimatesbeingchanged.
(5)ThefairvalueoffinancialinstrumentForthefinancialinstrumentswithoutactivemarket,theCompanyrecognizedthefairvaluebyvariousmethods.Theseevaluationmethodsincludeddiscountedcashflowmodeanalysis,etc.TheCompanyneededtoestimatethefuturecashflow,creditrisk,fluctuationrateofmarketandrelativityandotherfactors,aswellaschoosethepropertydiscountrate.Duetotheuncertaintyofrelevantassumptions,sotheirchangeswouldaffectthefairvalueoffinancialinstrument.Forequityinstrumentinvestmentorcontractswithpublicoffers,thecostwillnotbetakenastheoptimalestimationofthefairvaluebytheCompanysince1January2019.
(6)Provisionforimpairmentoflong-termassetsTheCompanymadeajudgmentonthenon-currentassetsotherthanfinancialassetswhethertheyhadanyindicationofimpairmentonthebalancesheetdate.Fortheintangibleassetswithoutfiniteservicelife,otherthantheannualimpairmenttest,theyshouldbesubjecttotheimpairmenttestwhentherewasanyindicationofimpairment.Forothernon-currentnon-financialassets,whichshouldbesubjectedtoimpairmenttestwhentherewasindicationofimpairmentindicatedthatthecarryingvaluecan’tberecoverable.Whenthecarryingvalueoftheassetsorassetsportfoliowasmorethantherecoverable
amount,whichwasthehigheronebetweenthenetamountoffairvalueafterdeductingthedisposalexpensesandthediscountedamountoftheestimatedfuturecashflow,itmeansimpairmentincurred.Thenetamountoffairvalueafterdeductingthedisposalexpensesshouldbefixedthepriceinthesaleagreementforsimilarassetsinthefairtransactionminustheincreasedcostsdirectlyattributabletotheassetsdisposal.Whenestimatedthediscountedvalueoffuturecashflow,theCompanyneededtomakeimportantjudgmentontheoutput,sellingprice,relevantcostsandthediscountrateforcalculatingthediscountedamount,etc.Whenestimatedtherecoverableamount,theCompanywouldadoptalltheavailabledocuments,includingthepredictionforrelevantoutput,sellingpriceandrelevantoperatingcostsarisingfromreasonableandsupportiveassumptions.TheCompanymadetheimpairmenttestongoodwillatleastonetimeperyear,whichrequiredtopredictthediscountedamountofthefuturecashflowoftheassetsorassetsportfoliowiththedistributedgoodwill,forwhich,theCompanyneededtopredictthefuturecashflowoftheassetsorassetsportfolio,andadoptthepropertydiscountedratetodecidethediscountedamountoffuturecashflow.
(7)DepreciationandamortizationFortheinvestmentrealestate,fixedassetsandintangibleassets,theCompanywithdrewthedepreciationandamortizationbyadoptingthestraight-linemethodduringtheservicelifeafterfullconsiderationofthesalvagevalue.TheCompanycheckedtheservicelifeperiodicallysoastodecidetheamountofdepreciationandamortizationateachReportingPeriod.TheservicelifewasfixedbytheCompanyinaccordancewiththepreviousexperienceofthesimilarassetsandtheexpectedtechnicalupdate.Iftherewasanysignificantchangeonthepreviousestimates,thedepreciationandamortizationexpensesshouldbeadjusted.
(8)DeferredincometaxassetsWithinthelimitthatitwaslikelytohavesufficienttaxableprofitstooffsetthelosses,theCompanyrecognizedthedeferredincometaxassetsbyalltheunusedtaxlosses,whichneededthemanagementleveloftheCompanytoestimatetimeandamountofthefuturetaxableprofitsincurredwithmanyjudgments,aswellasintegratestrategyoftaxpayment,todecidetheamountofdeferredincometaxassetswhichshouldberecognized.
(9)Incometax
Duringtheroutineoperatingactivities,thereweresomeuncertaintyintheultimatetaxtreatmentandcalculationforpartsoftransactions.Someaccountsofsuchtransactioncouldbelistedaspre-taxexpendituresonlyaftertheapprovaloftaxationauthorities.Iftherewereanydifferencesbetweentheultimateresultofrecognitionforthesetaxationmatersandtheirinitialestimates,thedifferenceswouldaffectthecurrentincometaxanddeferredincometaxattheperiodofultimaterecognition.
(10)InternalearlyretirementwelfareandsupplementaryretirementwelfareAmountsofexpendituresandliabilitiesofinternalearlyretirementwelfareandsupplementaryretirementwelfareshouldbedeterminedaccordingtoassumptionterms.Assumptiontermsincludediscountrate,averagegrowthrateofmedicalcosts,growthrateofsubsidiesforearlyretirementemployeesandretireesandotherfactors.Thedifferencesofactualresultsandassumptionshouldbeconfirmedimmediatelyandincludedintocostsofcurrentyear.Althoughthemanagementhaveadoptedreasonableassumptionterms,changesofactualexperiencevalueandassumptiontermsmayaffecttheinternalearlyretirementwelfare,supplementaryretirementbenefitsandbalanceofliabilities.
(11)ProvisionsTheCompanymadetheestimationonproductqualityguarantee,predictedlossofcontractandthefinefordelayeddeliveryetc.andwithdrewtherelevantprovisionforprovisionsinaccordancetheprovisionsofcontract,currentknowledgeandexperience.UndertheconditionthatthecontingenteventhasformedacurrentdutyandfulfillingthedutyislikelytocausetheeconomicalinterestoutflowtheCompany,theCompanymeasurestheprovisionsinaccordancewiththebestestimateofthenecessaryexpensesfortheperformanceofthecurrentduty.Therecognitionandmeasurementofprovisionswereheavilyreliedonthejudgmentofthemanagementteam.Duringtheprocessofmakingjudgment,theCompanyneededtoappraisetherelevantrisks,uncertaintyandthetimevalueofmoneyandetc.Ofwhich,theCompanyestimatedtheliabilitiesbasingontheafter-saleservicescommitmentstothecustomersuponthesale,repairandreformofgoods.Whenestimatingtheliabilities,theCompanyhasfullytakentheconsiderationofthelatestrepairexperience,butwhichmaynotreflecttherepairsituationinthefuture.Anyincrease/decreaseoftheprovisionforestimatedliabilitiesmayaffecttheprofitsandlossesinthefutureperiods.
(12)MeasurementforfairvalueSomeassetsandliabilitiesofthisCompanywillbemeasuredatfairvalueinthefinancialstatements.TheboardofdirectorsofthisCompanyhasestablishedtheappraisementcommittee(ledbytheCFOofthisCompany)toconfirmappropriateappraisement
technologyandinputvalueformeasurementoffairvalue.ThisCompanywillapplyavailableandobservablemarketdataduringestimatingthefairvalueofsomeassetsandliabilities.IftheinputvalueinLevel1isnotavailable,thisCompanywillentrustathirdqualifiedappraiserfortheestimation.Theappraisementcommitteewillcloselycooperatewiththeoutsideappraisertodetermineproperestimationtechnologyandinputvaluesoftherelatedmodels.CFOsubmitsareporttothediscoveriesoftheappraisementcommitteetotheboardofdirectorsofthisCompanytoexplainthereasonsoffluctuationoffairvalueofrelatedassetsandliabilities.RelatedinformationoftheappraisementtechnologyandinputvalueduringtheprocessofconfirmingthefairvalueofvariousassetsandliabilitiesshallbedisclosedinNoteX.V.Taxation
1.MainTaxesandTaxRate
Note:(1)TheoriginaltaxrateappliedbytheCompanyonVATtaxablesalesorimportedgoodswas17%/11%.AccordingtotheCircularoftheMinistryofFinanceandtheStateAdministrationofTaxationontheAdjustmentofVATTaxRate(CS[2018]No.32),the
Categoryoftaxes
| Categoryoftaxes | Specificsituationofthetaxesrate |
| VAT | Calculatedtheoutputtaxat3%,5%,6%,9%,10%,13%,16%andpaidtheVATbytheamountafterdeductingthedeductiblewithholdingVATatcurrentperiod,ofwhichtheVATapplicabletoeasycollectionwon’tbelongtothedeductiblewithholdingVAT. |
| Urbanmaintenanceandconstructiontax | Paidat7%ofthecirculatingtaxactuallypaid,ofwhichDongguanPacking,DongguanKonka,BoluoKonka,BoluoKonkaPrecision,ChengduAnren,XingDaHongYe,ShanghaiXinfeng,XinfengMicrocrystalline,BinzhouWeiyijie,BeihaiJingmai,BinzhouEcon,SuiningPengxiKangrunEnvironmentManagementCo.,Ltd.,DayiKangrunWaterCo.,Ltd.of5%.SubeiMongolAutonomousCountyKangrunWaterCo.,Ltd.paidbyhalfafterpaidof5%,andJiangxiKonkaandNanoCrystallizedGlassof1%. |
| Enterpriseincometax | ForHongKongKonka,KonkaHouseholdAppliancesInvestment,KonkaHouseholdAppliancesInternationalTrading,KonkaZhisheng,JialiInternational,JiaxinTechnology,Kangjietong,ChainKingdomMemoryTechnologiesandKonkaMobilitywhoseassessableprofitdidnotexceedHKD2,000,000.00,theypaidat8.25%,andiftheirassessableprofitexceededHKD2,000,000.00,theypaidat16.5%;TelecommunicationTechnology,Wankaida,JiangxiKonka,NanoCrystallizedGlass,DongguanKonka,EconTechnology,E2infoandXingDaHongYeof15%;andEuropeKonkaof31.8%includingincometaxof15%andbusinesstaxof16.8%.TheCompanyastheparentandothersubsidiariespaidat25%ofthetaxableincome. |
| Educationsurtax | Paidat3%ofthecirculatingtaxactuallypaid. |
| Localeducationsurtax | Paidat2%ofthecirculatingtaxactuallypaid.ShanghaiKonkapaidat1%. |
applicabletaxrateisadjustedto16%/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.
(4)AccordingtoNoticeonImplementingtheInclusiveTaxationReducingPolicyamongtheSmallandMicroBusinessesissuedbytheMOFandtheStateAdministrationofTaxation(CS[2019]No.13),from1January2019to31December2021,fortheannualtaxableincomenotexceedingRMB1MillionYuanfromthesmallbusinesseswithlittleprofit,only25%shallbeincludedasthetaxableincomeandthecorporateincometaxshallbepaidbasedonthe20%taxrate;iftheannualtaxableincomeexceedsRMB1MillionbutislessthanRMB3Million,only50%shallbeincludedasthetaxableincomeandthecorporateincometaxshallbepaidbasedonthe20%taxrate.
2.TaxPreferenceandApprovedDocuments
(1)On15August2017,ShenzhenKonkaTelecommunicationsTechnologyCo.,Ltd.,thesubsidiaryofthisCompanyobtainedthehigh-techenterprisecertificate(certificateNo.:
SZ20170142)jointlyissuedbyShenzhenTechnologyInnovationCommittee,FinanceCommissionofShenzhenMunicipality,ShenzhenMunicipalOffice,SAT,ShenzhenLocal
TaxationBureau,withavalidperiodofthreeyears.Accordingtorelatedtaxationregulations,ShenzhenKonkaTelecommunicationsTechnologyCo.,Ltd.enjoysrelatedtaxationpreferentialpoliciesasahigh-techenterprisefrom2017to2019andpaystheenterpriseincometaxasperthepreferentialtaxrateof15%.
(2)On31October2017,Wankaida,thesubsidiaryofthisCompanyobtainedtheHigh-techEnterpriseCertificate(certificateNo.:GR201744204716)jointissuedbyShenzhenTechnologyInnovationCommittee,FinanceCommitteeofShenzhenMunicipality,ShenzhenMunicipalOffice,SATandShenzhenLocalTaxationBureauwithavalidperiodofthreeyears.Accordingtorelatedtaxationregulations,Wankaidaenjoysrelatedtaxationpreferentialpoliciesasahigh-techenterprisefrom2017to2019andpaystheenterpriseincometaxasperthereferentialtaxrateof15%.
(3)On23August2017,JiangxiKonkaNewMaterialTechnologyCo.,Ltd.,thesubsidiaryofthisCompanyobtainedtheHigh-techEnterpriseCertificate(certificateNo.:
GR201736000497)jointlyissuedbyDepartmentofScienceandTechnologyofJiangxiProvince,DepartmentofFinanceofJiangxiProvince,JiangxiProvincialOffice,SAT,JiangxiLocalTaxationBureauwithavalidperiodofthreeyears.Accordingtorelatedtaxationregulations,thecompanyenjoysrelatedtaxationpreferentialpoliciesasahigh-techenterprisefrom2017to2019andpaystheenterpriseincometaxasperthepreferentialtaxrateof15%.
(4)On23August2017,JiangxiGoldenPhoenixNanoCrystallizedGlassCo.,Ltd.,thesubsidiaryofJiangxiKonkaobtainedtheHigh-techEnterpriseCertificate(certificateNo.:
GR201736000110)jointlyissuedbyDepartmentofScienceandTechnologyofJiangxiProvince,DepartmentofFinanceofJiangxiProvince,JiangxiProvincialOffice,SAT,JiangxiLocalTaxationBureauwithavalidperiodofthreeyears.Accordingtorelatedtaxationregulations,thecompanyenjoysrelatedtaxationpreferentialpoliciesasahigh-techenterprisefrom2017to2019andpaystheenterpriseincometaxasperthepreferentialtaxrateof15%.
(5)On1November2017,DongguanKonkaElectronicCo.,Ltd.,thesubsidiaryofthisCompanyobtainedtheHigh-techEnterpriseCertificate(certificateNo.:GR201744003812)jointlyissuedbyDepartmentofScienceandTechnologyofGuangdongProvince,DepartmentofFinanceofGuangdongProvince,GuangdongProvincialOffice,SAT,GuangdongLocalTaxationBureauwithavalidperiodofthreeyears.Accordingtorelatedtaxationregulations,thecompanyenjoysrelatedtaxationpreferentialpoliciesasahigh-techenterprisefrom2017to2019andpaystheenterpriseincometaxasperthepreferentialtax
rateof15%.
(6)On28December2017,EconTechnology,asubsidiaryoftheCompany,obtainedtheHigh-techEnterpriseCertificate(certificateNo.:GR201737001495)jointlyissuedbyDepartmentofScienceandTechnologyofShangdongProvince,DepartmentofFinanceofShangdongProvince,ShangdongProvincialOffice,SAT,ShangdongLocalTaxationBureauwithavalidperiodofthreeyears.Accordingtotherelevanttaxregulations,thecompanyenjoysrelatedtaxincentivesforhigh-techcompaniesforthreeconsecutiveyearsfrom2017to2019,andissubjecttocorporateincometaxatapreferentialrateof15%.
(7)On16October2018,ShenzhenE2infoNetworkTechnologyCo.,Ltd.,thesubsidiaryofthisCompanyobtainedthehigh-techenterprisecertificate(certificateNo.:GR201844201969)jointlyissuedbyShenzhenTechnologyInnovationCommittee,FinanceCommitteeofShenzhenMunicipality,ShenzhenTaxationBureauofSATwithavalidperiodofthreeyears.Accordingtorelatedtaxationregulations,thecompanyenjoysrelatedtaxationpreferentialpoliciesasahigh-techenterprisefrom2018to2020andpaystheenterpriseincometaxasperthepreferentialtaxrateof15%.
(8)On28November2018,theCompany’ssubsidiaryXingDaHongYereceivedtheHigh-techEnterpriseCertificate(No.GR201844008446withthe3-yearperiodofvalidity)jointlyissuedbyDepartmentofScienceandTechnologyofGuangdongProvince,DepartmentofFinanceofGuangdongProvinceandStateAdministrationofTaxation(GuangdongProvincialTaxService).Accordingtorelevanttaxregulations,from2018to2020,theenterpriseshallbeeligibleforenjoyingrelevantpreferentialtaxpoliciesasanewhigh-techenterpriseandcorrespondingcorporateincometaxshallbepaidbasedonthepreferentialtaxrateof15%.
(9)AccordingtotheNoticeonPromotingtheDevelopmentofVAT,BusinessTaxandEnterpriseIncomeTaxPolicyforEnergy-SavingServiceIndustryissuedbytheMinistryofFinanceandtheStateAdministrationofTaxation(FinanceandTaxation[2010]No.110),LairunHoldings,BinhaiSewageTreatmentandDonggangKangrunEnvironmentManagementCo.,Ltd.enjoysthepreferentialpolicyoftaxexemptionsforthreeyearsandhalvedinnextthreeyears.
(10)Accordingtothefiscalandtaxationdocument[2011]No.100publishedbytheMinistryofFinanceandtheStateAdministrationofTaxation,fortheVATgeneraltaxpayerswhoselltheirself-developedandproducedsoftwareproducts,theVATshallbeleviedattherateof13%,andthenthepartthattheactualtaxburdenontheirVATexceeds3willbeimplementedwiththepolicyofimmediatewithdrawal.TheCompany’ssubsidiaries,Wankaida
TechnologyandElectronicsTechnologyallenjoythispreferentialpolicy.
(11)AccordingtotheregulationsoftheSpecialCatalogueofVATConcessionsforProductsandLaborswithComprehensiveUtilizationofResourcesissuedbytheMinistryofFinanceandtheStateAdministrationofTaxation(FinanceandTaxation[2015]No.78),thewastewatertreatmentbusinessoperatedbyLairunHoldings,asubsidiaryofEconTechnology,belongstothethiscatalogue.ThenafterithasbeenleviedtheVATatarateof13%,theactualtaxburdenonthewastewatertreatmentincometaxwillberefundedinaccordancewiththe70%oftheactualtaxburden,andtheactualtaxburdenontherenewablewaterincomeVATwillberefundedimmediatelyat50%.ThatLairunHoldingsenjoyedthetaxconcessionwasregisteredandrecordedin25August2017inLaizhouTaxationBureauofShandongProvince.VI.NotesonMajorItemsinConsolidatedFinancialStatementsoftheCompanyUnlessotherwisenoted,thefollowingannotationitem(includingthemainitems，annotationofthefinancialstatementoftheCompany),theperiod-beginrefersto1January2019,theperiod-endrefersto30June2019;theCurrentPeriod/ReportingPeriodreferstoH1of2019andthesameperiodoflastyearreferstoH1of2018.
1.MonetaryCapital
Item
| Item | Endingbalance | Beginningbalance |
| Cashonhand | 343,490.38 | 130,105.31 |
| Bankdeposits | 4,700,902,044.15 | 3,434,019,376.41 |
| Othermonetarycapital | 969,021,586.02 | 913,994,647.81 |
| Total | 5,670,267,120.55 | 4,348,144,129.53 |
| Ofwhich:totalamountdepositedoverseas | 166,232,584.79 | 518,005,414.06 |
| Note:①Theendingbalanceofothermonetarycapitalwasfixedtimedeposit,variouscashdepositswhichcannotbewithdrawnatanytimeandotherdepositswithlimitationonuse.Fordetails,refertoNoteVI.64.AssetswithRestrictedOwnershiporRightofUse.②Asof30June2019,themonetarycapitaldepositedoverseasbytheCompanywasRMB166,232,584.79(31December2018:RMB518,005,414.06). | ||
2.TradingFinancialAssets
| Item | Endingbalance | Beginningbalance |
| Financialassetsatfairvaluethroughprofitorloss |
Including:Equityinstrumentinvestment
| Including:Equityinstrumentinvestment | 61,494,666.97 | 61,494,666.97 |
| Other | 5,464,984.92 | |
| Total | 61,494,666.97 | 66,959,651.89 |
3.NotesReceivable
(1)NotesReceivableListedbyCategory
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebill | 1,681,552,756.81 | 2,313,409,006.75 |
| Commercialacceptancebill | 320,882,295.70 | 822,641,321.13 |
| Total | 2,002,435,052.51 | 3,136,050,327.88 |
(2)NotesReceivablePledgedbytheCompanyatthePeriod-end
| Item | Amountpledgedattheendoftheterm |
| Bankacceptancebill | 1,186,883,020.53 |
| Total | 1,186,883,020.53 |
(3)NotesReceivablewhichHadEndorsedbytheCompanyorhadDiscountedandhadnotDueontheBalanceSheetDateatthePeriod-end
| Item | Amountofrecognitionterminationattheperiod-end | Amountnotterminatedrecognitionattheperiod-end |
| Bankacceptancebill | 139,251,145.62 | - |
| Total | 139,251,145.62 | - |
(4)NotesTransferredtoAccountsReceivablebecauseDraweroftheNotesFailedtoExecutetheContractorAgreement
| Item | Amountofthenotestransferredtoaccountsreceivableattheperiod-end |
| Commercialacceptancebill | 864,749,189.84 |
| Total | 864,749,189.84 |
4.AccountsReceivable
(1)DisclosedbyAging
| Aging | Endingbalance |
| Within1year | 4,143,821,438.63 |
| 1to2years | 1,216,489,500.95 |
| 2to3years | 38,764,411.87 |
| 3to4years | 9,051,831.92 |
| Over4years | 515,179,630.58 |
| Subtotal | 5,923,306,813.95 |
Less:baddebtprovision
| Less:baddebtprovision | 454,808,634.74 |
| Total | 5,468,498,179.21 |
(2)ListedbyWithdrawalMethodsforBadDebtProvision
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Accountsreceivable,forwhichtheindependentprovisionforexpectedcreditlosses | 962,812,125.96 | 16.25 | 146,605,971.30 | 15.23 | 816,206,154.66 |
| Accountsreceivable,forwhichtheprovisionforexpectedcreditlosseswaswithdrawnaccordingtogroups | |||||
| Including:aginggroup | 4,310,261,291.73 | 72.77 | 256,888,183.88 | 5.96 | 4,053,373,107.85 |
| Projectpaymentgroup | 650,233,396.26 | 10.98 | 51,314,479.56 | 7.89 | 598,918,916.70 |
| Total | 5,923,306,813.95 | 100.00 | 454,808,634.74 | 7.68 | 5,468,498,179.21 |
(Continued)
| Category | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Accountsreceivable,forwhichtheindependentprovisionforexpectedcreditlosses | 1,028,107,560.50 | 21.10 | 138,652,163.88 | 13.49 | 889,455,396.62 |
Accountsreceivable,forwhichtheprovisionforexpectedcreditlosseswaswithdrawnaccordingtogroups
| Accountsreceivable,forwhichtheprovisionforexpectedcreditlosseswaswithdrawnaccordingtogroups | |||||
| Including:aginggroup | 3,209,444,955.09 | 65.86 | 228,358,351.11 | 7.12 | 2,981,086,603.98 |
| Projectpaymentgroup | 635,426,998.71 | 13.04 | 48,510,094.99 | 7.63 | 586,916,903.72 |
| Total | 4,872,979,514.30 | 100.00 | 415,520,609.98 | 8.53 | 4,457,458,904.32 |
①Accountsreceivable,forwhich,theindependentprovisionforbaddebtismadeattheperiod-end
| Accountsreceivable(byunit) | Endingbalance | |||
| Carryingamount | Baddebtprovision | Withdrawalpercentage(%) | Withdrawalreason | |
| ShanghaiHuaxinInternationalGroupCo.,Ltd | 300,027,889.84 | 30,002,788.98 | 10.00 | Debtdefault |
| HongtuSantuHigh-techTechnologyCo.,Ltd. | 200,000,000.00 | 10,000,000.00 | 5.00 | Difficultyinworkingcapitalturnoveranddebtdefault |
| ElionResourcesGroupCo.,Ltd | 115,000,000.00 | 5,750,000.00 | 5.00 | Difficultyinworkingcapitalturnoverforthecounterpart |
| ChinaNuclearEngineeringConstructionGroupCo.,Ltd | 84,500,000.00 | 4,225,000.00 | 5.00 | Difficultyinworkingcapitalturnoverforthecounterpart |
| No.1EngineeringCompanyLimitedofCCCCFirstHarborEngineeringCompanyLimited | 65,221,300.00 | 6,522,130.00 | 10.00 | Difficultyinworkingcapitalturnoverforthecounterpart |
| ChinaEnergyElectricFuelCo.,Ltd | 50,000,000.00 | 5,000,000.00 | 10.00 | Difficultyinworkingcapitalturnoverforthecounterpart |
| TahoeGroupCo.Ltd | 50,000,000.00 | 2,500,000.00 | 5.00 | Difficultyinworkingcapitalturnoverforthecounterpart |
| DSCHOLDINGSLIMITED | 24,462,454.04 | 24,462,454.04 | 100.00 | Difficulttorecoverforbankruptcy |
| H-BUSTERDOBRASILINDUSTRIA | 18,907,586.44 | 18,907,586.44 | 100.00 | Difficulttorecoverforbankruptcy |
TreeviewBusinessRegistration
| TreeviewBusinessRegistration | 11,262,555.50 | 1,341,891.83 | 11.91 | Difficulttorecoverall |
| HENANBROADCAST&TELEVISIONNETWORKCO.,LTD. | 4,580,000.00 | 1,374,000.00 | 30.00 | Difficulttorecoverall |
| HILEVELCONSUMERITALIAS.P.A | 3,548,995.63 | 3,548,995.63 | 100.00 | Difficulttorecoverforbankruptcy |
| Other | 35,301,344.51 | 32,971,124.38 | 93.40 | —— |
| Total | 962,812,125.96 | 146,605,971.30 | 15.23 | —— |
②Inthegroup,accountsreceivable,forwhich,theprovisionforbaddebtwasmadeaccordingtoaginggroups
| Item | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion(%) | |
| Within1year | 3,992,095,976.11 | 81,039,548.32 | 2.03 |
| 1to2years | 151,935,952.49 | 11,197,679.70 | 7.37 |
| 2to3years | 1,833,787.58 | 406,183.95 | 22.15 |
| 3to4years | 415,093.97 | 264,290.33 | 63.67 |
| Over4years | 163,980,481.58 | 163,980,481.58 | 100.00 |
| Total | 4,310,261,291.73 | 256,888,183.88 | 5.96 |
③Inthegroup,accountsreceivable,forwhich,theprovisionforbaddebtwasmadeaccordingtoprojectpaymentgroups
| Item | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion(%) | |
| Within1year | 436,255,337.94 | 21,812,766.90 | 5 |
| 1to2years | 176,431,094.87 | 17,643,109.49 | 10 |
| 2to3years | 34,818,909.77 | 10,445,672.93 | 30 |
| 3to4years | 2,565,042.33 | 1,282,521.17 | 50 |
| Over4years | 163,011.35 | 130,409.07 | 80 |
| Total | 650,233,396.26 | 51,314,479.56 | 7.89 |
(3)BadDebtProvision
| Category | Beginning | Increase/decrease | Endingbalance |
balance
| balance | Withdrawal | Recoveredorreversed | Otherdecrease | ||
| Accountsreceivable,forwhichtheindependentprovisionforexpectedcreditlosses | 138,652,163.88 | 15,972,908.35 | 7,297,925.88 | 721,175.05 | 146,605,971.30 |
| Accountsreceivable,forwhichtheprovisionforexpectedcreditlosseswaswithdrawnaccordingtogroups | |||||
| Including:aginggroup | 228,358,351.11 | 29,952,918.14 | 1,423,085.37 | 256,888,183.88 | |
| Projectpaymentgroup | 48,510,094.99 | 4,498,210.07 | 1,693,825.50 | - | 51,314,479.56 |
| Total | 415,520,609.98 | 50,424,036.56 | 8,991,751.38 | 2,144,260.42 | 454,808,634.74 |
Ofwhich,baddebtprovisionrecoveredorreversedduringtheReportingPeriodwithsignificantamount
| Entity | Amountrecoveredorreversed | Recoverymethod |
| JizhongEnergyInternationalLogisticsGroupCo.,Ltd | 3,000,000.00 | Collection |
| Total | 3,000,000.00 | —— |
(4)AccountsReceivablewithoutActualVerificationfortheReportingPeriod
(5)Top5oftheEndingBalanceoftheAccountsReceivableCollectedaccordingtotheArrearsPartyThetotalamountoftopfiveofaccountreceivableofendingbalancecollectedbyarrearspartywasRMB1,682,366,170.42,accountingfor28.40%oftotalclosingbalanceofaccountreceivable,therelevantendingbalanceofbaddebtprovisionwithdrawnwasRMB68,289,781.16.
5.FinancingBackedbyAccountsReceivable
Item
| Item | Endingamount | ||
| Cost | Changeinfairvalue | Fairvalueatperiod-end | |
| Notesreceivable | 107,299,247.91 | 107,299,247.91 | |
| Total | 107,299,247.91 | 107,299,247.91 | |
6.Prepayments
(1)ListbyAgingAnalysis
| Aging | Endingamount | Beginningamount | ||||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | |||
| Amount | Proportion(%) | Amount | Proportion(%) | |||
| Within1year | 2,939,552,528.44 | 99.58 | 240,694.09 | 1,029,600,745.72 | 98.97 | 57,459.57 |
| 1to2years | 8,528,194.82 | 0.29 | 113,522.85 | 7,171,926.78 | 0.69 | 435,914.85 |
| 2to3years | 829,001.69 | 0.03 | - | 543,662.41 | 0.05 | - |
| Over3years | 3,011,719.40 | 0.10 | 2,879,285.83 | 3,034,224.15 | 0.29 | 2,878,017.08 |
| Total | 2,951,921,444.35 | 100.00 | 3,233,502.77 | 1,040,350,559.06 | 100.00 | 3,371,391.50 |
Notes:(1)Significantprepaymentwithagingmorethan1yearwasmainlytheprepaymentofcompanieswithnocooperation.
(2)ThetotalamountoftopfiveofprepaymentofendingbalancecollectedbyarrearspartywasRMB818,482,404.96,accountingfor27.73%oftotalendingbalanceofprepayment.
(3)ThewithdrawalamountofbaddebtprovisionthisyearwasofRMB217,172.46;thecollectedorreversedbaddebtprovisionwasRMB357,050.05fortheReportingPeriod;andtherewasnowrite-offbaddebtprovision;theincreasedamountwasofRMB1,988.86duetochangesinexchangerate.
7.InterestReceivable
| Item | Endingbalance | Beginningbalance |
| Fixedtimedeposits | 2,123,030.91 | 3,440,237.63 |
| Entrustedloans | 61,111.11 | 48,888.89 |
| Factoringinterest | 570,555.88 | 570,555.88 |
| Total | 2,754,697.90 | 4,059,682.40 |
8.Dividendsreceivable
Item(orinvestees)
| Item(orinvestees) | Endingbalance | Beginningbalance |
| ChongqingQingjia | 547,848.62 | 547,848.62 |
| Total | 547,848.62 | 547,848.62 |
9.OtherReceivables
①Listedbyaging
| Aging | Endingbalance | Beginningbalance |
| Within1year | 866,539,175.80 | 256,528,018.58 |
| 1to2years | 119,169,126.08 | 135,441,669.13 |
| 2to3years | 13,962,189.10 | 14,670,505.12 |
| 3to4years | 85,954,676.09 | 86,704,294.17 |
| 4to5years | 20,288,652.89 | 22,177,189.05 |
| Over5years | 105,258,349.82 | 103,804,041.19 |
| Subtotal | 1,211,172,169.78 | 619,325,717.24 |
| Less:baddebtprovision | 223,508,385.89 | 215,418,640.28 |
| Total | 987,663,783.89 | 403,907,076.96 |
②ClassifiedbyAccountNature
| Nature | Endingbalance | Beginningbalance |
| Energy-savingsubsidies | 183,063,658.63 | 165,912,605.30 |
| Intercoursefunds | 152,402,680.00 | 152,402,680.00 |
| Borrowingsofrelated-parties | 549,297,719.43 | 130,429,176.41 |
| Buyoutfinancialserviceincomereceivable | 161,326,980.03 | 59,252,474.98 |
| Otherexternalborrowings | 73,269,178.08 | 29,403,385.01 |
| Depositandmargin | 18,228,687.41 | 18,228,687.41 |
| Equitytransferredmoney | 3,207,318.07 | 3,500,807.51 |
| Prettycash | 70,375,948.13 | 60,195,900.62 |
| Subtotal | 1,211,172,169.78 | 619,325,717.24 |
| Less:baddebtprovision | 223,508,385.89 | 215,418,640.28 |
| Total | 987,663,783.89 | 403,907,076.96 |
③WithdrawalofBadDebtProvision
Baddebtprovision
| Baddebtprovision | PhaseI | PhaseII | PhaseIII | Total |
| Expectedcreditlossesoverthenext12months | Expectedcreditlossesfortheentireduration(nocreditimpairment) | Expectedcreditlossesfortheentireduration(withcreditimpairment) | ||
| Balanceon1January2019 | 41,911,687.09 | 173,506,953.19 | 215,418,640.28 | |
| IntheReportingPeriod,Carryingamountofotherreceivableson1January2019: | ||||
| ——TransferredtothePhaseII | ||||
| ——TransferredtothePhaseIII | ||||
| ——TransferredbacktothePhaseII | ||||
| ——TransferredbacktothePhaseI | ||||
| Withdrawal | 8,409,900.19 | 237,782.80 | 8,647,682.99 | |
| Recovery | 463,866.81 | 463,866.81 | ||
| Write-off | - | |||
| Verification | - | |||
| Otherchanges | 94,070.57 | 94,070.57 | ||
| Balanceon30June2019 | 49,763,649.90 | - | 173,744,735.99 | 223,508,385.89 |
Category
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Proportion(%) | ||
| Otherreceivables,forwhichtheindependentprovisionforexpectedcreditlosses | 184,507,567.33 | 15.23 | 173,744,735.99 | 94.17 | 10,762,831.34 |
| Otherreceivableswithdrawnbaddebtprovisionaccordingtocreditriskscharacteristics: | |||||
| Group1:aginggroup | 600,472,545.09 | 49.58 | 45,501,729.33 | 7.58 | 554,970,815.76 |
| Group2:low-riskgroup | 426,192,057.36 | 35.19 | 4,261,920.57 | 1.00 | 421,930,136.79 |
| Total | 1,211,172,169.78 | 100 | 223,508,385.89 | 18.45 | 987,663,783.89 |
| Category | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Proportion(%) | ||
| Otherreceivables,forwhichtheindependentprovisionforexpectedcreditlosses | 184,619,007.33 | 29.80 | 173,506,953.19 | 93.98 | 11,112,054.14 |
| Otherreceivableswithdrawnbaddebtprovisionaccordingtocreditriskscharacteristics: | |||||
| Group1:aginggroup | 388,967,784.28 | 62.81 | 41,436,970.43 | 10.65 | 347,530,813.85 |
| Group2:low-riskgroup | 45,738,925.63 | 7.39 | 474,716.66 | 1.04 | 45,264,208.97 |
| Total | 619,325,717.24 | 100 | 215,418,640.28 | 34.78 | 403,907,076.96 |
④BadDebtProvision
| Category | Beginningbalance | Increases/decrease | Endingbalance | ||
| Withdrawal | Recoveredorreversed | Otherdecrease | |||
Otherreceivables,forwhichtheindependentprovisionforexpectedcreditlosses
| Otherreceivables,forwhichtheindependentprovisionforexpectedcreditlosses | 173,506,953.19 | 237,782.80 | - | - | 173,744,735.99 |
| Aginggroup | 41,436,970.43 | 4,622,696.27 | 463,866.81 | 94,070.57 | 45,501,729.33 |
| Low-riskgroup | 474,716.65 | 3,787,203.92 | - | 4,261,920.57 | |
| Total | 215,418,640.28 | 8,647,682.99 | 463,866.81 | 94,070.57 | 223,508,385.89 |
⑤TherewasnootherreceivableswithactualverificationfortheReportingPeriod.
⑥Top5OtherReceivablesinEndingBalanceCollectedaccordingtotheArrearsParty
| Nameofunits | Nature | Endingbalance | Aging | Proportionofendingbalanceofthetotalotheraccountsreceivable | Endingbalanceofbaddebtprovision |
| AdministrativeCommitteeofChuzhouDevelopmentZone | Intercoursefunds | 297,256,700.00 | With1year | 24.54 | 2,972,567.00 |
| Nationalenergy-savingandbenefitingpeople(Energy-savingsubsidies) | Subsidies | 152,402,680.00 | 4to5yearsandover5years | 12.58 | 152,402,680.00 |
| JiangxiMeijiIndustryCo.,ltd | Intercoursefundsoforiginalshareholdersofsubsidiariesacquired | 99,798,640.31 | 1to2yearsandwithin1year | 8.24 | 2,205,549.95 |
| EquitytransferofDaiRongxingandotherintercoursefunds | SharetransferaccountsIntercoursefundsoforiginalfundsofsubsidiariesacquired | 83,265,018.32 | 1to2yearsandwithin1year | 6.87 | 2,489,085.90 |
| YantaiHengxiangRobotsTechnologyCo.,Ltd. | Cashdeposit | 48,000,000.00 | 1to2years | 3.96 | 4,800,000.00 |
| Total | 680,723,038.63 | 56.19 | 164,869,882.85 |
⑦TherewasnoaccountsreceivableinvolvedingovernmentsubsidiesfortheReportingPeriod
⑧Therewasnootherreceivablesderecognizedfortransferoffinancialassetsforthe
ReportingPeriod.⑨TherewasnofinancialassetsandliabilitiesgeneratedfromtransferofotherreceivablesandcontinuousinvolvementfortheReportingPeriod
10.Inventory
(1)CategoryofInventory
Item
| Item | Endingbalance | |||
| Carryingamount | Ofwhich:thecapitalizedamountoftheborrowings | Fallingpricereserves | Carryingvalue | |
| Developmentprojectsoftheproperty: | ||||
| Developmentcost | - | - | ||
| Landintendedtodevelop | - | |||
| Subtotal | - | - | ||
| Non-developmentprojectsoftheproperty: | ||||
| Rawmaterials | 1,608,135,086.58 | 76,153,832.27 | 1,531,981,254.31 | |
| Semi-finishedproduct | 122,456,507.95 | 9,309,280.42 | 113,147,227.53 | |
| Inventorygoods | 4,420,172,314.59 | 299,560,364.57 | 4,120,611,950.02 | |
| Finishedbutunsettledassetsfromconstructioncontract | 44,495,341.20 | - | 44,495,341.20 | |
| Subtotal | 6,195,259,250.32 | 385,023,477.26 | 5,810,235,773.06 | |
| Total | 6,195,259,250.32 | 385,023,477.26 | 5,810,235,773.06 | |
(Continued)
| Item | Beginningbalance | |||
| Carryingamount | Ofwhich:thecapitalizedamountoftheborrowings | Fallingpricereserves | Carryingvalue | |
| Developmentprojectsoftheproperty: | ||||
Item
| Item | Beginningbalance | |||
| Carryingamount | Ofwhich:thecapitalizedamountoftheborrowings | Fallingpricereserves | Carryingvalue | |
| Developmentcost | 85,167,073.18 | 2,470,133.87 | - | 85,167,073.18 |
| 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 |
| Inventorygoods | 4,518,051,460.16 | - | 330,081,328.25 | 4,187,970,131.91 |
| Finishedbutunsettledassetsfromconstructioncontract | 15,922,881.17 | - | - | 15,922,881.17 |
| Subtotal | 5,745,679,183.83 | - | 414,096,229.96 | 5,331,582,953.87 |
| Total | 5,901,701,457.01 | 2,470,133.87 | 414,096,229.96 | 5,487,605,227.05 |
(2)ListoftheDevelopmentCost
| Nameofitem | Startingtime | Expectedcompletiontimeofthenextbatch | Beginningamount | Endingamount |
| InnovationCenter | April2018 | December2022 | 85,167,073.18 | - |
| Total | 85,167,073.18 | - |
(3)FallingPriceReservesofInventory
| Item | Beginningbalance | Increasedamount | Decreasedamount | Endingbalance | ||
| Withdrawal | Increaseofmerger | Reverseorwrite-off | Decreaseoflosingcontrollingright | |||
| Rawmaterials | 73,754,748.97 | 3,721,593.79 | 801,912.81 | 520,597.68 | 76,153,832.27 | |
| Goodsin | 10,260,152.74 | 663,571.13 | 861,745.33 | 752,698.12 | 9,309,280.42 | |
Item
| Item | Beginningbalance | Increasedamount | Decreasedamount | Endingbalance | ||
| Withdrawal | Increaseofmerger | Reverseorwrite-off | Decreaseoflosingcontrollingright | |||
| process | ||||||
| Inventorygoods | 330,081,328.25 | 8,437,560.87 | 36,898,999.61 | 2,059,524.94 | 299,560,364.57 | |
| Total | 414,096,229.96 | 12,822,725.79 | - | 38,562,657.75 | 3,332,820.74 | 385,023,477.26 |
(4)WithdrawalProvisionBasisoftheFallingPriceoftheInventoryandtheReasonsoftheReversedorWrite-off
| Item | Specificbasisofwithdrawaloffallingpricereservesofinventory | Reasonsforreverse | Reasonsforwrite-off |
| Rawmaterials | Therealizablenetvaluewaslowerthanthecarryingvalue | — | Soldordisposedinthecurrentperiod |
| Goodsinprocess | Therealizablenetvaluewaslowerthanthecarryingvalue | — | Soldordisposedinthecurrentperiod |
| Inventorygoods | Therealizablenetvaluewaslowerthanthecarryingvalue | — | Soldinthecurrentperiod |
(5)EndingbalanceoftheinventorywhichincludescapitalizedborrowingexpenseswasRMB0.
(6)FinishedbutUnsettledAssetsfromConstructionContract
| Item | Amount |
| Accumulativelyincurredcosts | 714,468,271.18 |
| Accumulativelyrecognizedgrossmargin | 129,583,491.29 |
| Less:estimatedloss | - |
| Settledamounts | 799,556,421.27 |
| FinishedbutUnsettledAssetsfromConstructionContract | 44,495,341.20 |
11.CurrentPortionofNon-currentAssets
| Item | Endingbalance | Beginningbalance | Remark |
| Currentportionoflong-termreceivable | 53,237,851.30 | 22,318,208.13 | Fordetails,seeNoteVI.13 |
Item
| Item | Endingbalance | Beginningbalance | Remark |
| Total | 53,237,851.30 | 22,318,208.13 |
12.OtherCurrentAssets
| Item | Endingbalance | Beginningbalance |
| Financialproducts | ||
| Principalandinterestofentrustedloanstojointventures | 1,148,697,055.18 | 1,824,523,111.11 |
| Entrustedfinancing | - | 30,000,000.00 |
| Unreachedbankdeposits | ||
| Prepaymentsanddeductibletaxes,andrefundoftaxforreportreceivable | 591,353,068.73 | 794,991,256.00 |
| Prepaymentoflandpurchase | - | 75,450,000.00 |
| Others | 26,485,236.11 | 19,251,774.87 |
| Total | 1,766,535,360.02 | 2,744,216,141.98 |
13.Long-termReceivables
(1)ListofLong-termReceivables
| Item | Endingbalance | Beginningbalance | Intervalofdiscountrate | ||||
| Carryingamount | Impairmentprovision | Carryingvalue | Carryingamount | Impairmentprovision | Carryingvalue | ||
| Financeleasingamount | 115,943,583.65 | - | 115,943,583.65 | 55,893,266.81 | - | 55,893,266.81 | 4.35%-8.78% |
| Ofwhich:unrealizedfinancingincome | 11,363,170.60 | - | 11,363,170.60 | 4,975,887.40 | - | 4,975,887.40 | 4.35%-8.78% |
| Cashdepositsoflong-termreceivables | 7,801,495.81 | - | 7,801,495.81 | 7,801,495.81 | - | 7,801,495.81 | - |
| Long-termreceivablesofprojectswithfranchisetights | 349,416,483.56 | - | 349,416,483.56 | 349,416,483.56 | - | 349,416,483.56 | - |
| Less:Currentportionoflong-termreceivables(fordetails,seeNoteVI.11) | 53,237,851.30 | - | 53,237,851.30 | 22,318,208.13 | - | 22,318,208.13 | - |
Item
| Item | Endingbalance | Beginningbalance | Intervalofdiscountrate | ||||
| Carryingamount | Impairmentprovision | Carryingvalue | Carryingamount | Impairmentprovision | Carryingvalue | ||
| Total | |||||||
| 419,923,711.72 | - | 419,923,711.72 | 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
| Item | Initialinvestedamount | Beginningbalance | Increase | Decrease | Endingbalance | Ofwhich:reclassifiedintocurrentportionoflong-termreceivables | ||||
| MergerincreaseintheReportingPeriod | Newlyincreasedinvestmentamount | Interestincome | Principalrecover | Interestrecover | Otherdecrease | |||||
| PPPProjectofwatersupplyandsewageofRushanSilverBeach | 349,416,483.56 | 349,416,483.56 | - | - | - | - | - | - | 349,416,483.56 | - |
| Total | 349,416,483.56 | 349,416,483.56 | - | - | - | - | - | - | 349,416,483.56 | - |
14.Long-termEquityInvestment
| Investee | Beginningbalance | Increase/decreaseintheReportingPeriod | |||||
| Additionalinvestment | Increaseforcombinations | Decreasedinvestment | Investmentprofitandlossrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Otherequitychanges | ||
| KonkaVenturesDevelopment(Shenzhen)Co.,Ltd. | 2,359,048.04 | - | - | - | -490,743.29 | - | - |
| NanjingIntelligenceOpticalInformationTechnologyResearchInstituteCo.,Ltd | 1,605,469.87 | - | - | - | -144,833.79 | - | - |
Investee
| Investee | Beginningbalance | Increase/decreaseintheReportingPeriod | |||||
| Additionalinvestment | Increaseforcombinations | Decreasedinvestment | Investmentprofitandlossrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Otherequitychanges | ||
| GuoguangRuilian(Shenzhen)InternetTechnologyCo.,Ltd. | 777,956.58 | - | - | - | -514,281.92 | - | - |
| ChongqingQingjiaElectronicsCo.,Ltd. | 19,750,739.24 | - | - | - | - | - | - |
| ShenzhenJielunteTechnologyCo.,Ltd. | 83,329,443.68 | - | - | - | -2,592,517.96 | - | - |
| PanxuIntelligenceCo.,Ltd. | 49,170,159.29 | - | - | - | 902,086.78 | - | - |
| BeijingKonkaJingyuanTechnologyCo.,Ltd. | 759,258.94 | - | - | - | - | - | - |
| Oriexcellent(Zhuhai)AssetsManagementCo.,Ltd. | 2,757,557.31 | - | - | - | -836,000.00 | - | - |
| FeidiTechnology(Shenzhen)Co.,Ltd. | 4,868,798.36 | 12,000,000.00 | - | - | -647,925.56 | - | - |
| NanjingK-StarTechnologyIndustrialParkOperationManagementCo.,Ltd. | 50,929,429.45 | - | - | 17,000,000.00 | - | - | - |
| WeihaiCityWaterEnvironmentalProtectionTechnologyCo.,Ltd. | 2,440,433.26 | - | - | - | - | - | - |
| WeihaiYihengEnvironmentTechnologyCo.,Ltd. | 4,571,472.70 | - | - | - | - | - | - |
| LaizhouLairunFinancialLeasingCo.,Ltd. | - | - | - | - | - | - | - |
Investee
| Investee | Beginningbalance | Increase/decreaseintheReportingPeriod | |||||
| Additionalinvestment | Increaseforcombinations | Decreasedinvestment | Investmentprofitandlossrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Otherequitychanges | ||
| BinzhouBeihaiWeiqiaoSolidWasteDisposalCo.,Ltd. | 59,671,933.63 | - | - | - | 9,761,794.24 | - | - |
| ShandongBishuiyuanEnvironmentalProtectionTechnologyCo.,Ltd. | 24,745,069.48 | - | - | - | - | - | - |
| ShenzhenRF-LINKTechnologyCo.,Ltd. | 100,277,552.55 | - | - | - | 70,860.88 | - | -- |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | 26,656,667.58 | - | - | - | -10,458,637.68 | - | - |
| ShenzhenYaodeTechnologyCo.,Ltd. | 222,210,835.18 | - | - | - | 1,615,602.55 | - | - |
| ChutianDragonCo.,Ltd. | 624,845,604.93 | - | - | - | 13,279,493.50 | - | -- |
| KonkaGreen,andKonkaTechnology(③) | 78,409,903.14 | - | - | - | -180,177.55 | - | - |
| ZhuhaiJinsuPlasticCo.,Ltd. | 11,040,246.82 | - | - | - | 428,175.28 | - | - |
| ShenzhenKonkaIntelligentElectricalApplianceTechnologyCo.,Ltd. | 2,287,478.52 | - | - | - | -152,488.28 | - | - |
| ShenzhenZhongbingKonkatechnologyCo.,Ltd. | 10,617,873.79 | - | - | - | -2,230,059.14 | - | - |
| GuangdongHotcommInformationTechnologyCo.,Ltd. | - | - | - | - | - | - | - |
| ShenzhenOCTLifeNetworkTechnology | 3,592,514.06 | - | - | 3,592,514.06 | - | - | - |
Investee
| Investee | Beginningbalance | Increase/decreaseintheReportingPeriod | |||||
| Additionalinvestment | Increaseforcombinations | Decreasedinvestment | Investmentprofitandlossrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Otherequitychanges | ||
| Co.,Ltd. | |||||||
| KunshanKonkaElectronicsCo.,Ltd. | 200,694,466.80 | - | - | - | -4,811,843.11 | - | - |
| KunshanKangshengInvestmentDevelopmentCo.,Ltd. | 269,673,264.00 | - | - | - | - | - | - |
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | 436,685,064.57 | - | - | - | - | - | - |
| ShenzhenBosserNewMaterialsCo.,Ltd. | 79,859,338.44 | - | - | - | 1,056,895.31 | - | - |
| HeilongjiangLongkangZhijiaTechnologyCo.,Ltd | 6,400,480.52 | - | - | - | -239,050.00 | - | - |
| ShanxiSilkRoadYunqiIntelligentTechnologyCo.,Ltd. | 4,522,509.33 | - | - | - | - | - | - |
| WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | 252,270,255.47 | - | - | - | 5,620,617.83 | - | - |
| ShandongKonkaSmartElectricalApplianceCo.,Ltd. | - | 4,000,000.00 | - | - | -287,791.69 | - | - |
| BeijingAoweiHuyuTechnologyCo.,Ltd. | - | 6,000,000.00 | - | - | 10,492.58 | - | - |
| Yilingfang | - | - | - | - | -935.98 | - | - |
| HuarunEnvironmentWaterCo.,Ltd. | - | 15,819,210.00 | - | - | - | - | - |
Investee
| Investee | Beginningbalance | Increase/decreaseintheReportingPeriod | |||||
| Additionalinvestment | Increaseforcombinations | Decreasedinvestment | Investmentprofitandlossrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Otherequitychanges | ||
| HenanKonkaSmartElectricalApplianceCo.,Ltd. | - | 1,600,000.00 | - | - | -617,458.44 | - | - |
| ShenzhenE-displayCo.,Ltd. | - | - | - | - | - | - | - |
| ChuzhouKonkaTID | - | - | - | - | - | - | - |
| HuoqiuKangrunKaitianEnvironmentWaterCo.,Ltd. | - | 10,000,000.00 | - | - | - | - | - |
| Total | 2,637,780,825.53 | 49,419,210.00 | - | 20,592,514.06 | 8,541,274.56 | - | - |
(Continued)
| Investee | Increase/decreaseintheReportingPeriod | Endingbalance | Endingbalanceofimpairmentprovision | ||||
| Declarationofcashdividendsorprofits | Withdrawnimpairmentprovision | Costmethodconvertedintoequitymethod | Financialassetsconvertedintoequitymethod | Other | |||
| KonkaVenturesDevelopment(Shenzhen)Co.,Ltd. | - | - | - | - | - | 1,868,304.75 | - |
| NanjingIntelligenceOpticalInformationTechnologyResearchInstituteCo.,Ltd | - | - | - | - | - | 1,460,636.08 | - |
| GuoguangRuilian(Shenzhen)Internet | - | - | - | - | - | 263,674.66 | - |
Investee
| Investee | Increase/decreaseintheReportingPeriod | Endingbalance | Endingbalanceofimpairmentprovision | ||||
| Declarationofcashdividendsorprofits | Withdrawnimpairmentprovision | Costmethodconvertedintoequitymethod | Financialassetsconvertedintoequitymethod | Other | |||
| TechnologyCo.,Ltd. | |||||||
| ChongqingQingjiaElectronicsCo.,Ltd.(①) | - | - | - | - | - | 19,750,739.24 | - |
| ShenzhenJielunteTechnologyCo.,Ltd. | - | - | - | - | - | 80,736,925.72 | - |
| PanxuIntelligenceCo.,Ltd. | - | - | - | - | - | 50,072,246.07 | - |
| BeijingKonkaJingyuanTechnologyCo.,Ltd. | - | - | - | - | - | 759,258.94 | - |
| Oriexcellent(Zhuhai)AssetsManagementCo.,Ltd. | - | - | - | - | - | 1,921,557.31 | - |
| FeidiTechnology(Shenzhen)Co.,Ltd. | - | - | - | - | - | 16,220,872.80 | - |
| NanjingK-StarTechnologyIndustrialParkOperationManagementCo.,Ltd. | - | - | - | - | - | 33,929,429.45 | - |
| WeihaiCityWaterEnvironmentalProtectionTechnologyCo.,Ltd.(②) | - | - | - | - | - | 2,440,433.26 | - |
| WeihaiYihengEnvironmentTechnologyCo.,Ltd.(②) | - | - | - | - | - | 4,571,472.70 | - |
| LaizhouLairunFinancialLeasingCo.,Ltd.(②) | - | - | - | - | - | - | - |
| BinzhouBeihaiWeiqiaoSolidWasteDisposalCo.,Ltd.(②) | - | - | - | - | - | 69,433,727.87 | - |
Investee
| Investee | Increase/decreaseintheReportingPeriod | Endingbalance | Endingbalanceofimpairmentprovision | ||||
| Declarationofcashdividendsorprofits | Withdrawnimpairmentprovision | Costmethodconvertedintoequitymethod | Financialassetsconvertedintoequitymethod | Other | |||
| ShandongBishuiyuanEnvironmentalProtectionTechnologyCo.,Ltd.(②) | - | - | - | - | - | 24,745,069.48 | - |
| ShenzhenRF-LINKTechnologyCo.,Ltd. | - | - | - | - | - | 100,348,413.43 | - |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | - | - | - | - | - | 16,198,029.90 | - |
| ShenzhenYaodeTechnologyCo.,Ltd. | - | - | - | - | - | 223,826,437.73 | - |
| ChutianDragonCo.,Ltd | - | - | - | - | - | 638,125,098.43 | - |
| KonkaGreen,andKonkaTechnology(③) | - | - | - | - | - | 78,229,725.59 | - |
| ZhuhaiJinsuPlasticCo.,Ltd. | 2,070,000.00 | - | - | - | - | 9,398,422.10 | - |
| ShenzhenKonkaIntelligentElectricalApplianceTechnologyCo.,Ltd | - | - | - | - | - | 2,134,990.24 | - |
| ShenzhenZhongbingKonkatechnologyCo.,Ltd. | - | - | - | - | - | 8,387,814.65 | - |
| GuangdongHotcommInformationTechnologyCo.,Ltd. | - | - | - | - | - | - | - |
| ShenzhenOCTLifeNetworkTechnologyCo.,Ltd. | - | - | - | - | - | - | - |
| KunshanKonkaElectronicsCo.,Ltd. | - | - | - | - | - | 195,882,623.69 | - |
| KunshanKangshengInvestmentDevelopmentCo.,Ltd. | - | - | - | - | - | 269,673,264.00 | - |
Investee
| Investee | Increase/decreaseintheReportingPeriod | Endingbalance | Endingbalanceofimpairmentprovision | ||||
| Declarationofcashdividendsorprofits | Withdrawnimpairmentprovision | Costmethodconvertedintoequitymethod | Financialassetsconvertedintoequitymethod | Other | |||
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | - | - | - | - | - | 436,685,064.57 | - |
| ShenzhenBosserNewMaterialsCo.,Ltd. | - | - | - | - | - | 80,916,233.75 | - |
| HeilongjiangLongkangZhijiaTechnologyCo.,Ltd. | - | - | - | - | - | 6,161,430.52 | - |
| ShanxiSilkRoadYunqiIntelligentTechnologyCo.,Ltd. | - | - | - | - | - | 4,522,509.33 | - |
| WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | - | - | - | - | - | 257,890,873.30 | - |
| ShandongKonkaSmartElectricalApplianceCo.,Ltd. | - | - | - | - | - | 3,712,208.31 | - |
| BeijingAoweiHuyuTechnologyCo.,Ltd. | - | - | - | - | - | 6,010,492.58 | - |
| Yilingfang | - | - | - | - | - | -935.98 | - |
| HuarunEnvironmentWaterCo.,Ltd. | - | - | - | - | - | 15,819,210.00 | - |
| HenanKonkaSmartElectricalApplianceCo.,Ltd. | - | - | - | - | - | 982,541.56 | - |
| ShenzhenE-displayCo.,Ltd. | - | - | 112,500,000.00 | - | - | 112,500,000.00 | - |
| ChuzhouKonkaTID | - | - | 61,029,500.00 | - | - | 61,029,500.00 | - |
| HuoqiuKangrunKaitianEnvironmentWaterCo.,Ltd. | - | - | - | - | - | 10,000,000.00 | - |
Investee
| Investee | Increase/decreaseintheReportingPeriod | Endingbalance | Endingbalanceofimpairmentprovision | ||||
| Declarationofcashdividendsorprofits | Withdrawnimpairmentprovision | Costmethodconvertedintoequitymethod | Financialassetsconvertedintoequitymethod | Other | |||
| Total | 2,070,000.00 | - | 173,529,500.00 | - | - | 2,846,608,296.03 | - |
15.OtherEquityInstrumentInvestment
(1)OtherEquityInstrumentInvestment
Item
| Item | Endingbalance | Beginningbalance |
| ShenzhenTianyilianScience&TechnologyCo.,Ltd. | - | 4,800,000.00 |
| FeihongElectronicsCo.,Ltd. | - | - |
| ZAEFI | - | - |
| ShenzhenChuangceInvestmentDevelopmentCo.,Ltd. | - | - |
| ShanlianInformationTechnologyEngineeringCenter | 3,360,809.20 | 3,360,809.20 |
| ShenzhenCIUScience&TechnologyCo.,Ltd. | 953,000.00 | 953,000.00 |
| ShenzhenDigitalTVNationalEngineeringLaboratoryCo.,Ltd. | 7,726,405.16 | 7,726,405.16 |
| ShanghaiNationalEngineeringResearchCenterofDigitalTVCo.,Ltd. | 2,400,000.00 | 2,400,000.00 |
| BeijingKonkaTechnologyCo.,Ltd. | 4,700,000.00 | 4,700,000.00 |
| Total | 19,140,214.36 | 23,940,214.36 |
(2)Non-transactionalEquityInstrumentInvestment
| Item | Dividendincomerecognizedinthecurrentperiod | Accumulativegain | Accumulativeloss | Amountofretainedearningstransferredfromothercomprehensiveincome | Reasonformeasureatfairvalueofwhichrecordedinothercomprehensiveincome | Reasonforretainedearningstransferredfromothercomprehensiveincome |
| ShenzhenTianyilianScience&TechnologyCo.,Ltd. | - | - | 4,800,000.00 | - | Long-termholdingbasedonstrategicpurpose | |
| FeihongElectronicsCo.,Ltd. | - | - | 1,300,000.00 | - | Long-termholdingbasedonstrategicpurpose | |
| ZAEFI | - | - | 100,000.00 | - | Long-termholdingbasedonstrategicpurpose | |
| ShenzhenChuangce | - | - | 485,000.00 | - | Long-termholdingbasedon |
InvestmentDevelopmentCo.,Ltd.
| InvestmentDevelopmentCo.,Ltd. | strategicpurpose | ||||
| ShanlianInformationTechnologyEngineeringCenter | - | - | 1,639,190.80 | - | Long-termholdingbasedonstrategicpurpose |
| ShenzhenCIUScience&TechnologyCo.,Ltd. | - | - | 200,000.00 | - | Long-termholdingbasedonstrategicpurpose |
| ShenzhenDigitalTVNationalEngineeringLaboratoryCo.,Ltd. | - | - | 1,273,594.84 | - | Long-termholdingbasedonstrategicpurpose |
| ShanghaiNationalEngineeringResearchCenterofDigitalTVCo.,Ltd. | - | - | - | - | Long-termholdingbasedonstrategicpurpose |
| BeijingKonkaTechnologyCo.,Ltd. | - | - | - | - | Long-termholdingbasedonstrategicpurpose |
| Total | - | - | 9,797,785.64 | - | - |
16.OtherNon-currentFinancialAssets
| Item | Endingbalance | Beginningbalance |
| Classifiedasfinancialassetsatfairvaluethroughprofitorloss | 1,548,364,400.00 | 548,230,000.00 |
| Including:debtinstrumentinvestment | - | - |
| Equityinstrumentinvestment | 1,548,364,400.00 | 548,230,000.00 |
| Derivativefinancialassets | - | - |
| Hybridinstrumentinvestment | - | - |
| Other | - | - |
| designatedasfinancialassetsatfairvaluethroughprofitorloss | - | - |
| Including:debtinstrumentinvestment | - | - |
Hybridinstrumentinvestment
| Hybridinstrumentinvestment | - | - |
| Other | - | - |
| Total | 1,548,364,400.00 | 548,230,000.00 |
17.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 | 39,098,692.03 |
| 2.Increasedamountoftheperiod | 2,815,637.15 |
| 3.Decreasedamountoftheperiod | - |
| 4.Endingbalance | 41,914,329.18 |
| III.Impairmentprovision | |
| 1.Beginningbalance | - |
| 2.Increasedamountoftheperiod | - |
| 3.Decreasedamountoftheperiod | - |
| 4.Endingbalance | - |
| IV.Carryingvalue | |
| 1.Endingcarryingvalue | 208,008,718.57 |
| 2.Beginningcarryingvalue | 210,824,355.72 |
18.FixedAssets
Item
| Item | Endingbalance | Beginningbalance |
| Fixedassets | 2,228,083,633.72 | 2,410,226,495.81 |
| Disposaloffixedassets | - | - |
| Total | 2,228,083,633.72 | 2,410,226,495.81 |
(1)ListofFixedAssets
| Item | Housesandbuildings | Machineryequipment | Electronicequipment | Transportationequipment | Otherequipment | Total |
| I.Originalcarryingvalue | ||||||
| 1.Beginningbalance | 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 |
| 2.Increasedamountoftheperiod | 5,643,529.56 | 115,070,706.88 | 4,688,868.33 | 2,958,435.02 | 23,965,789.47 | 152,327,329.26 |
| (1)Purchase | 4,784,564.00 | 61,595,856.44 | 4,688,868.33 | 2,778,482.63 | 22,761,636.88 | 96,609,408.28 |
| (2)Transferofconstructioninprogress | 858,965.56 | 53,474,850.44 | - | 179,952.39 | 1,204,152.59 | 55,717,920.98 |
| (3)increaseofbusinesscombination | - | - | - | - | - | - |
| 3.Decreasedamountoftheperiod | 188,396,950.55 | 135,617,037.24 | 3,337,442.38 | 2,715,136.85 | 9,755,719.38 | 339,822,286.40 |
Item
| Item | Housesandbuildings | Machineryequipment | Electronicequipment | Transportationequipment | Otherequipment | Total |
| (1)DisposalorScrap | 188,396,950.55 | 130,413,329.34 | 3,218,185.73 | 2,715,136.85 | 8,201,461.59 | 332,945,064.06 |
| (2)decreaseoflossofcontrollingright | - | 5,203,707.90 | 119,256.65 | - | 1,554,257.79 | 6,877,222.34 |
| 4.Endingbalance | 1,977,327,982.24 | 1,827,019,203.68 | 174,144,843.20 | 58,903,550.32 | 212,651,404.39 | 4,250,046,983.83 |
| II.Accumulativedepreciation | ||||||
| 1.Beginningbalance | 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 |
| 2.Increasedamountoftheperiod | 34,444,579.79 | 124,022,789.19 | 5,605,567.26 | 2,577,771.53 | 7,517,236.49 | 174,167,944.26 |
| (1)Withdrawal | 34,444,579.79 | 124,022,789.19 | 5,605,567.26 | 2,577,771.53 | 7,517,236.49 | 174,167,944.26 |
| (2)Increaseofbusinessmerger | - | - | - | - | - | - |
| 3.Decreasedamountoftheperiod | 68,377,572.01 | 93,346,740.86 | 2,921,077.76 | 2,282,488.32 | 8,165,511.68 | 175,093,390.63 |
| (1)DisposalorScrap | 68,377,572.01 | 91,138,587.26 | 2,840,604.68 | 2,282,488.32 | 7,104,537.04 | 171,743,789.31 |
| (2)decreaseoflossofcontrollingright | - | 2,208,153.60 | 80,473.08 | - | 1,060,974.64 | 3,349,601.32 |
| 4.Endingbalance | 600,862,938.05 | 1,032,005,091.61 | 138,592,523.43 | 40,481,828.15 | 141,083,445.90 | 1,953,025,827.14 |
Item
| Item | Housesandbuildings | Machineryequipment | Electronicequipment | Transportationequipment | Otherequipment | Total |
| III.Depreciationreserves | ||||||
| 1.Beginningbalance | 1,247,805.91 | 68,610,152.04 | 1,215,451.65 | 820,215.24 | 1,470,546.81 | 73,364,171.65 |
| 2.Increasedamountoftheperiod | - | - | - | - | - | - |
| (1)Withdrawal | - | - | - | - | - | - |
| (2)Increaseofbusinessmerger | - | - | - | - | - | - |
| 3.Decreasedamountoftheperiod | - | 4,318,285.23 | 4,350.83 | - | 104,012.62 | 4,426,648.68 |
| (1)DisposalorScrap | - | 4,318,285.23 | 4,350.83 | - | 104,012.62 | 4,426,648.68 |
| (2)decreaseoflossofcontrollingright | - | - | - | - | - | - |
| 4.Endingbalance | 1,247,805.91 | 64,291,866.81 | 1,211,100.82 | 820,215.24 | 1,366,534.19 | 68,937,522.97 |
| IV.Carryingvalue | ||||||
| 1.Endingcarryingvalue | 1,375,217,238.28 | 730,722,245.26 | 34,341,218.95 | 17,601,506.93 | 70,201,424.30 | 2,228,083,633.72 |
| 2.Beginningcarryingvalue | 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)ListofTemporarilyIdleFixedAssets
Item
| Item | Originalcarryingvalue | Accumulativedepreciation | Impairmentprovision | Carryingvalue |
| Mechanicalequipment | 16,406,610.84 | 6,178,421.06 | 7,349,335.30 | 2,878,854.48 |
| Electronicequipment | 1,942,358.43 | 1,433,032.24 | - | 509,326.19 |
| Transportationequipment | 125,981.91 | 113,383.72 | - | 12,598.19 |
| Otherequipment | 547,252.26 | 456,847.47 | 43,847.23 | 46,557.56 |
| Total | 19,022,203.44 | 8,181,684.49 | 7,393,182.53 | 3,447,336.42 |
(3)FixedAssetsLeasedinfromFinancingLease
| Item | Originalcarryingvalue | Accumulativedepreciation | Impairmentprovision | Carryingvalue |
| Mechanicalequipment | 77,615,759.89 | 15,019,413.62 | - | 62,596,346.27 |
| Electronicequipment | 205,128.20 | 177,777.77 | - | 27,350.43 |
| Total | 77,820,888.09 | 15,197,191.39 | - | 62,623,696.70 |
(4)FixedAssetsLeasedoutfromOperationLease
| Item | Endingcarryingvalue |
| Housesandbuildings | 59,181,043.13 |
| Mechanicalequipment | 10,345,367.42 |
| Total | 69,526,410.55 |
(5)DetailsofFixedAssetsFailedtoAccomplishCertificationofProperty
| Item | Originalcarryingvalue | Accumulativedepreciation | Impairmentprovision | Netcarryingvalue | Reason |
| HuaguoyuanProjectinHuaguoyuanRoad,Guiyang | 3,628,629.00 | 251,736.18 | - | 3,376,892.82 | Underprocessing |
| 26-1Longzhimeng,PangjiangStreetPropertyinDadongDistrict, | 10,189,892.23 | 1,204,561.09 | - | 8,985,331.14 | Theproblemsofdevelopers |
Shenyang
| Shenyang | |||||
| JingyuanBuildingproperty | 20,018,497.00 | 8,869,726.65 | - | 11,148,770.35 | Historicalreasons |
| YikangBuildingproperty | 76,610,752.33 | 34,319,203.86 | - | 42,291,548.47 | Historicalreasons |
| FrestecElectricalAppliancesproperty | 31,336,020.00 | 352,530.26 | - | 30,983,489.74 | Underprocessing |
| WorkshopsandbuildingsofJiangxikonka | 112,397,538.12 | 32,923,207.13 | - | 79,474,330.99 | Underprocessing |
| PurificationtankforliquidwasteofXingDaHongYe | 2,653,000.00 | 1,303,286.25 | - | 1,349,713.75 | Underprocessing |
19.ConstructioninProgress
Item
| Item | Endingbalance | Beginningbalance |
| ConstructioninProgress | 2,776,018,241.52 | 2,176,871,530.80 |
| Engineeringmaterial | - | - |
| Total | 2,776,018,241.52 | 2,176,871,530.80 |
(1)ListofConstructioninProgress
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Impairmentprovision | Carryingvalue | Carryingamount | Impairmentprovision | Carryingvalue | |
| ComprehensiveimprovementengineeringprojectofdrainagebasinsinthecityofDonggang | 570,766,842.65 | - | 570,766,842.65 | 451,789,427.70 | - | 451,789,427.70 |
| WatersupplyengineeringprojectinMazongshanTown,SubeiMongolAutonomousCounty,GansuProvince | 552,623,974.82 | - | 552,623,974.82 | 552,055,516.50 | - | 552,055,516.50 |
| CentralCityComprehensiveacceleratedprogramsinEconomicandTechnologicalDevelopmentZoneofBinhai,Weifang | 261,680,935.60 | - | 261,680,935.60 | 261,826,586.30 | - | 261,826,586.30 |
| ThesecondlineofXinfengMicrocrystallineJade | 371,215,114.23 | - | 371,215,114.23 | 365,069,872.84 | - | 365,069,872.84 |
| ThesecondlineofJiangxiNanoCrystallizedGlass | 304,826,822.19 | - | 304,826,822.19 | 303,533,244.21 | - | 303,533,244.21 |
| PhaseIofGuangmingProject | 156,084,314.80 | - | 156,084,314.80 | 153,577,240.57 | - | 153,577,240.57 |
| PPPProjectofwatertreatmentinHunanCounty | 414,945,586.48 | - | 414,945,586.48 | - | - | - |
| Othersmallprojects | 143,874,650.75 | 143,874,650.75 | 89,019,642.68 | 89,019,642.68 | ||
Item
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Impairmentprovision | Carryingvalue | Carryingamount | Impairmentprovision | Carryingvalue | |
| Total | ||||||
(2)ChangesofSignificantConstructioninProgress
| Nameofitem | Estimatednumber | Beginningbalance | IncreaseAmount | Mergerincreaseamount | Amountthattransferredtolong-termfixedassetsoftheperiod | Otherdecreasedamountoftheperiod | Endingbalance |
| ComprehensiveimprovementengineeringprojectofdrainagebasinsinthecityofDonggang | RMB1299million | 451,789,427.70 | 118,977,414.95 | - | - | - | 570,766,842.65 |
| WatersupplyengineeringprojectinMazongshanTown,SubeiMongolAutonomousCounty,GansuProvince | RMB970million | 552,055,516.50 | 568,458.32 | - | - | - | 552,623,974.82 |
| CentralCityComprehensiveacceleratedprogramsinEconomicandTechnologicalDevelopmentZoneofBinhai,Weifang | RMB2,850million | 261,826,586.30 | - | - | - | 145,650.70 | 261,680,935.60 |
| ThesecondlineofXinfengMicrocrystallineJade | RMB381million | 365,069,872.84 | 10,666,706.57 | - | 4,521,465.18 | - | 371,215,114.23 |
| ThesecondlineofJiangxiNanoCrystallizedGlass | RMB434million | 303,533,244.21 | 6,075,209.13 | - | 4,781,631.15 | - | 304,826,822.19 |
| PhaseIofGuangmingProject | RMB241million | 153,577,240.57 | 2,507,074.23 | - | - | - | 156,084,314.80 |
| PPPProjectofwatertreatmentinHunanCounty | RMB972million | - | 414,949,989.00 | 4,402.52 | - | 414,945,586.48 |
Nameofitem
| Nameofitem | Estimatednumber | Beginningbalance | IncreaseAmount | Mergerincreaseamount | Amountthattransferredtolong-termfixedassetsoftheperiod | Otherdecreasedamountoftheperiod | Endingbalance |
| Othersmallprojects | 89,019,642.68 | 102,960,858.62 | 47,569,820.30 | 536,030.25 | 143,874,650.75 | ||
| Total | 2,176,871,530.80 | 656,705,710.82 | - | 56,877,319.15 | 681,680.95 | 2,776,018,241.52 |
（Continued）
| Projectname | Proportionestimatedoftheprojectaccumulativeinput(%) | Projectprogress | Accumulativeamountofcapitalizedinterests | Ofwhich:theamountofthecapitalizedinterestsoftheperiod | Capitalizationrateoftheinterestsoftheperiod(%) | Capitalresources |
| ComprehensiveimprovementengineeringprojectofdrainagebasinsinthecityofDonggang | 43.95 | 43.95 | 4,414,083.33 | 4,414,083.33 | 2.71 | Self-ownedfundandbankfinancing |
| WatersupplyengineeringprojectinMazongshanTown,SubeiMongolAutonomousCounty,GansuProvince | 56.97 | 56.97 | - | - | - | Self-ownedfundandbankfinancing |
| CentralCityComprehensiveacceleratedprogramsinEconomicandTechnologicalDevelopmentZoneofBinhai,Weifang | 9.18 | 9.18 | - | - | - | Self-ownedfundandbankfinancing |
| ThesecondlineofXinfengMicrocrystallineJade | 98.56 | 98.56 | 26,987,072.16 | 4,218,634.18 | 7.00 | Self-ownedfundandfinanceleasing |
| ThesecondlineofJiangxiNanoCrystallizedGlass | 71.40 | 71.40 | 31,299,947.21 | 4,453,246.18 | 7.00 | Self-ownedfundandfinanceleasing |
| PhaseIofGuangmingProject | 64.76 | 64.76 | - | - | - | Self-ownedfund |
| PPPProjectofwatertreatmentinHunanCounty | 42.68 | 42.68 | - | - | - | Self-ownedfundandbank |
Projectname
| Projectname | Proportionestimatedoftheprojectaccumulativeinput(%) | Projectprogress | Accumulativeamountofcapitalizedinterests | Ofwhich:theamountofthecapitalizedinterestsoftheperiod | Capitalizationrateoftheinterestsoftheperiod(%) | Capitalresources |
| financing | ||||||
| Othersmallprojects | - | - | - | - | - | - |
| Total | - | - | 62,701,102.70 | 13,085,963.69 | - | - |
20.IntangibleAssets
(1)Listofintangibleassets
| Item | Landuseright | Intellectualproperty | Total | ||||
| Trademarkright | Patentandknow-how | Franchiserights | Righttousesoftwareandothers | Subtotal | |||
| I.Originalcarryingvalue | |||||||
| 1.Beginningbalance | 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 |
| 2.Increasedamountoftheperiod | 78,468,000.00 | - | - | - | 3,328,272.05 | 3,328,272.05 | 81,796,272.05 |
| (1)Purchase | 78,468,000.00 | - | - | - | 1,647,939.92 | 1,647,939.92 | 80,115,939.92 |
| (2)Transferofconstructioninprogress | - | - | - | - | 1,680,332.12 | 1,680,332.12 | 1,680,332.12 |
| (3)increaseofbusiness | - | - | - | - | - | - | - |
Item
| Item | Landuseright | Intellectualproperty | Total | ||||
| Trademarkright | Patentandknow-how | Franchiserights | Righttousesoftwareandothers | Subtotal | |||
| combination | |||||||
| 3.Decreasedamountoftheperiod | 7,289,880.61 | - | - | - | 4,487,025.17 | 4,487,025.17 | 11,776,905.78 |
| (1)Disposal | 7,147,153.06 | - | - | - | - | - | 7,147,153.06 |
| (2)decreaseoflosingcontrollingright | 142,727.55 | - | - | - | 4,487,025.17 | 4,487,025.17 | 4,629,752.72 |
| 4.Endingbalance | 511,718,876.91 | 47,490,161.70 | 195,491,851.74 | 111,050,625.01 | 79,214,435.90 | 433,247,074.35 | 944,965,951.26 |
| II.Accumulatedamortization | |||||||
| 1.Beginningbalance | 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 |
| 2.Increasedamountoftheperiod | 6,285,855.53 | - | 260,325.44 | 2,221,012.50 | 3,751,363.02 | 6,232,700.96 | 12,518,556.49 |
| (1)Withdrawal | 6,285,855.53 | - | 260,325.44 | 2,221,012.50 | 3,751,363.02 | 6,232,700.96 | 12,518,556.49 |
| (2)increaseofbusinesscombination | - | - | - | - | - | - | - |
| 3.Decreasedamountoftheperiod | 3,035,596.91 | - | - | - | 7,744.26 | 7,744.26 | 3,043,341.17 |
Item
| Item | Landuseright | Intellectualproperty | Total | ||||
| Trademarkright | Patentandknow-how | Franchiserights | Righttousesoftwareandothers | Subtotal | |||
| (1)Disposal | 3,035,596.91 | - | - | - | - | - | 3,035,596.91 |
| (2)decreaseoflosingcontrollingright | - | - | - | - | 7744.26 | 7,744.26 | 7,744.26 |
| 4.Endingbalance | 43,912,494.17 | 5,364,671.49 | 46,554,634.88 | 8,884,050.00 | 39,028,180.83 | 99,831,537.20 | 143,744,031.37 |
| 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 | - | - | - | - | - | - | - |
Item
| Item | Landuseright | Intellectualproperty | Total | ||||
| Trademarkright | Patentandknow-how | Franchiserights | Righttousesoftwareandothers | Subtotal | |||
| 4.Endingbalance | - | - | 2,901,082.61 | - | - | 2,901,082.61 | 2,901,082.61 |
| IV.Carryingvalue | |||||||
| 1.Endingcarryingvalue | 467,806,382.74 | 42,125,490.21 | 146,036,134.25 | 102,166,575.01 | 40,186,255.07 | 330,514,454.54 | 798,320,837.28 |
| 2.Beginningcarryingvalue | 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)LandUseRightwithCertificateofTitleUncompleted
Item
| Item | Carryingvalue | Reason |
| LandusagerightofthesubsidiaryNanocrystalline | 5,401,491.41 | Underprocessing |
(3)SignificantIntangibleAssets
| Item | Endingcarryingvalue | Remainingamortizationperiod |
| FranchiserightsofsewagetreatmentinLaizhou | 102,166,575.01 | 23.00 |
| VariouspatentrightofJiangxiKonka | 92,117,647.06 | 5.17 |
| LandusagerightofXGY(2006)No.04049 | 72,612,368.45 | 37.25 |
| LandusagerightofGuangminglandparcelNo.A518-0103 | 38,694,416.25 | 24.83 |
| RighttousethetrademarkofFrestec | 37,786,666.67 | 9.08 |
(4)IntangibleAssetswithrestrictedownershiporusingright
| Item | Endingcarryingvalue | Reasons |
| LandusagerightofXingDaHongYe | 37,464,602.72 | Mortgageloanofland |
| LandusagerightofJiangxiKonka | 2,285,918.26 | Mortgageloanofland |
| LandusagerightofYinbinKonka | 13,959,352.66 | Landmortgageguarantee |
| LandusagerightofKonkaGuangmingTechnologyCenter | 38,694,416.25 | Mortgageloanofland |
| LandusagerightofFrestec | 45,651,427.59 | Mortgageloanofland |
21.Goodwill
(1)OriginalCarryingValueofGoodwill
| Nameoftheinvesteesortheeventsformedgoodwill | Beginningbalance | Increased | Decreased | Endingbalance | ||
| Formedfromthebusinesscombination | Other | Dispose | Other | |||
| AnhuiKonka | 3,597,657.15 | - | - | - | - | 3,597,657.15 |
| EconTechnology | 467,825,151.34 | - | - | - | - | 467,825,151.34 |
| Jiangxikonka | 340,111,933.01 | - | - | - | - | 340,111,933.01 |
| XingDaHongYe | 44,156,682.25 | - | - | - | - | 44,156,682.25 |
| Total | 855,691,423.75 | - | - | - | - | 855,691,423.75 |
(2)ProvisionsforGoodwillImpairment
Nameoftheinvesteesor
theeventsformedgoodwill
| Nameoftheinvesteesortheeventsformedgoodwill | Beginningbalance | Increased | Decreased | Endingbalance | ||
| Withdrawal | Other | Dispose | Other | |||
| AnhuiKonka | - | - | - | - | - | - |
| EconTechnology | - | - | - | - | - | - |
| Jiangxikonka | - | - | - | - | - | - |
| XingDaHongYe | - | - | - | - | - | - |
| Total | - | - | - | - | - | - |
22.Long-termDeferredExpenses
| Item | Beginningbalance | Increasedamount | Amortizationamount | Decreaseduetoloseofcontrolpower | Endingamount |
| Renovationcosts | 34,904,540.12 | 4,129,481.90 | 5,558,634.30 | - | 33,475,387.72 |
| Shoppeexpense | 61,368,072.24 | 19,824,349.40 | 27,227,161.65 | - | 53,965,259.99 |
| Other | 14,950,814.41 | 9,230,556.30 | 10,517,404.08 | - | 13,663,966.63 |
| Total | 111,223,426.77 | 33,184,387.60 | 43,303,200.03 | - | 101,104,614.34 |
23.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)DeferredIncomeTaxAssetswithoutOffset
| Item | Endingbalance | Beginningbalance | |||
| Deductibletemporarydifference | Deferredincometaxassets | Deductibletemporarydifference | Deferredincometaxassets | ||
| Deductiblelosses | 2,014,479,689.25 | 510,499,204.16 | 1,358,336,470.51 | 336,401,597.67 | |
| Assetsimpairmentprovision | 931,622,631.11 | 224,775,481.79 | 936,009,764.81 | 226,316,093.63 | |
| Deferredincome | 68,481,479.04 | 18,565,204.82 | 85,456,786.55 | 20,389,065.68 | |
| Accruedexpenses | 53,582,508.96 | 18,823,248.72 | 72,865,789.50 | 17,320,299.04 | |
| Unrealizedinternalsalesprofits | 71,832,827.52 | 8,979,103.44 | 35,916,413.76 | 8,979,103.44 | |
| others | 111,345,976.27 | 28,692,504.50 | 123,082,867.34 | 30,027,794.84 | |
| Total | 3,251,345,112.17 | 810,334,747.43 | 2,611,668,092.47 | 639,433,954.30 | |
(2)ListsofDeferredIncomeTaxLiabilitieswithoutOffset
| Item | Endingbalance | Beginningbalance |
Taxabletemporary
difference
| Taxabletemporarydifference | Deferredincometaxliabilities | Taxabletemporarydifference | Deferredincometaxliabilities | |
| Estimatedaddedvaluenotunderthesamecontrol | 594,933,512.81 | 118,871,107.71 | 597,961,840.34 | 119,325,356.84 |
| Prepaidinterest | 90,371,653.88 | 22,592,913.47 | 71,719,199.88 | 17,929,799.97 |
| Accelerateddepreciationoffixedassets | 5,826,060.67 | 873,909.10 | 5,929,959.47 | 889,493.92 |
| Changeinfairvalueoftradingfinancialassets | - | - | 3,005,381.67 | 751,345.42 |
| Other | 8,496,388.76 | 2,124,097.19 | 8,496,388.76 | 2,124,097.19 |
| Total | 699,627,616.12 | 144,462,027.47 | 687,112,770.12 | 141,020,093.34 |
(3)ListofUnrecognizedDeferredIncomeTaxAssets
| Item | Endingbalance | Beginningbalance |
| Deductiblelosses | 2,652,826,212.81 | 2,688,310,555.91 |
| Deductibletemporarydifference | 568,390,308.42 | 294,734,548.10 |
| Total | 3,221,216,521.23 | 2,983,045,104.01 |
24.OtherNon-currentAssets
| Item | Endingbalance | Beginningbalance |
| OrientKonkano.1(zhuhai)privateequityinvestmentfund(limitedpartnership) | 265,516,500.31 | 158,810,750.31 |
| Entrustedloans | 120,000,000.00 | 120,000,000.00 |
| Constructionofgovernmentprojects | 37,975,365.16 | 41,410,334.97 |
| Prepaymentforhouse-purchase | 24,003,225.05 | 10,099,279.84 |
| Prepaymentforequipment | - | 6,497,317.32 |
| YantaiEconBusinessManagementCenter(LLP) | 647,814.39 | 647,814.39 |
| Other | 12,193.56 | 12,193.56 |
| Total | 448,155,098.47 | 337,477,690.39 |
25.Short-termBorrowings
| Item | Endingbalance | Beginningbalance |
| Creditloan | 12,251,505,460.85 | 12,471,968,199.93 |
| Guaranteedloan | 12,251,505,460.85 | 12,471,968,199.93 |
| Mortgageloan(note①and②) | 699,162,352.25 | 1,113,964,731.70 |
Item
| Item | Endingbalance | Beginningbalance |
| Pledgedloan | 93,000,000.00 | 30,000,000.00 |
| Aloansecured,pledged,orpledged（note③） | ||
| Total | 120,000,000.00 | 268,200,000.00 |
Note:①WiththecarryingvalueofRMB82,959,836.52asthecollateralofthesecondphaseplant,DongguanKonkaobtainedtheloanofRMB70,000,000.00fromtheDongguanBranchofIndustrialBankCo.,Ltd.
②WiththecarryingvalueofRMB77,406,897.99forplantandequipment,thelanduserightofRMB2,285,918.26,JiangxiKonkaobtainedtheloanofRMB23,000,000.00fromthesalesdepartmentofJiangxiYongxiuRuralCommercialBankCo.,Ltd.③WithcarryingvalueofRMB56,193,626.65forplantandbuildings,landuserightofRMB37,464,602.72,andRMB19,800,000.00unitcertificatesofdepositascollateral,andShanghaiXinfengZhuoqunPCBCo.,Ltd.HuZehongandKonkaGroupprovidemaximumamountguarantee,XingdaHongyeobtainedmortgageloanRMB120,000,000.00respectivelyfromtheHushaBranchoftheagriculturalbankofZhongshanandZhongshanBranchofIndustrialBankCo.,Ltd.
26.FinancialLiabilitiesatFairValuethroughProfitorLoss
| Item | Endingbalance | Beginningbalance |
| Lossofforwardexchangecontract | - | 2,459,603.25 |
| Total | - | 2,459,603.25 |
27.NotesPayable
| Category | Endingbalance | Beginningbalance |
| Tradeacceptance | 1,007,887,109.01 | 131,907,909.16 |
| Bank’sacceptancebill | 101,594,731.83 | 730,422,780.31 |
| Total | 1,109,481,840.84 | 862,330,689.47 |
28.AccountsPayable
| Item | Endingbalance | Beginningbalance |
| Within1year | 4,272,706,388.36 | 4,041,645,573.26 |
| 1to2years | 385,880,356.75 | 262,217,987.99 |
| 2to3years | 12,703,076.60 | 12,677,653.94 |
Item
| Item | Endingbalance | Beginningbalance |
| Over3years | 30,574,622.38 | 46,181,835.14 |
| Total | 4,701,864,444.09 | 4,362,723,050.33 |
(1)SignificantAccountsPayableAgingoverOneYear
| Item | Endingbalance | Unpaid/Un-carry-overreason |
| Estimatedprojectfunds | 193,700,604.12 | Settlementconditionsnotmet |
| Total | 193,700,604.12 |
29.AdvancesfromCustomers
(1)ListofAdvancesfromCustomers
| Item | Endingbalance | Beginningbalance |
| Within1year | 806,357,448.30 | 654,982,234.51 |
| 1to2years | 38,492,927.46 | 32,910,085.56 |
| 2to3years | 23,174,286.19 | 13,172,633.37 |
| Over3years | 26,764,583.93 | 22,162,575.76 |
| Total | 894,789,245.88 | 723,227,529.20 |
(2)SignificantAdvancesfromCustomersAgingoverOneYear
| Item | Endingbalance | Unpaid/Un-carry-overreason |
| DongguanKonkaMouldPlasticCo.,Ltd. | 24,974,635.75 | Settlementconditionsnotmet |
| ShenzhenKonkaVideo&CommunicationSystemsEngineeringCo.,Ltd. | 15,357,854.41 | Settlementconditionsnotmet |
| Total | 40,332,490.16 | —— |
30.PayrollPayable
(1)ListofPayrollPayable
Item
| Item | Beginningbalance | Increase | Increasebymerger | Decrease | Decreasebylosingcontrollingright | Endingbalance | |
| I.Short-termsalary | 375,284,193.12 | 609,982,040.88 | - | 772,315,202.61 | - | 212,951,031.39 | |
| II.Post-employmentbenefit-definedcontributionplans | 1,222,374.59 | 58,521,529.93 | - | 53,960,054.44 | - | 5,783,850.08 | |
| III.Terminationbenefits | - | 6,739,415.57 | - | 6,499,670.26 | - | 239,745.31 | |
| IV.Currentportionofotherbenefits | - | - | - | - | - | - | |
| Total | 376,506,567.71 | 675,242,986.38 | - | 832,774,927.31 | - | 218,974,626.78 | |
(2)ListofShort-termSalary
| Item | Beginningbalance | Increase | Increasebymerger | Decrease | Decreasebylosingcontrollingright | Endingbalance |
| 1.Salary,bonus,allowance,subsidy | 359,657,745.92 | 524,509,522.16 | - | 695,110,153.57 | - | 189,057,114.51 |
| 2.Employeewelfare | 5,620,738.67 | 31,239,364.35 | - | 26,554,552.11 | - | 10,305,550.91 |
| 3.Socialinsurance | 3,138,171.50 | 26,874,149.31 | - | 25,012,490.96 | - | 4,999,829.85 |
| Ofwhich:Medicalinsurancepremiums | 768,410.84 | 22,423,240.02 | - | 21,306,477.10 | - | 1,885,173.76 |
Item
| Item | Beginningbalance | Increase | Increasebymerger | Decrease | Decreasebylosingcontrollingright | Endingbalance |
| Work-relatedinjuryinsurance | 160,343.82 | 2,321,254.48 | - | 1,955,714.10 | - | 525,884.20 |
| Maternityinsurance | 2,209,416.84 | 2,129,654.81 | - | 1,750,299.76 | - | 2,588,771.89 |
| 4.Housingfund | 545,498.50 | 13,372,934.62 | 12,709,474.05 | - | 1,208,959.07 | |
| 5.Laborunionbudgetandemployeeeducationbudget | 5,581,101.82 | 6,014,093.75 | - | 5,180,035.61 | - | 6,415,159.96 |
| 6.Short-termabsencewithpayment | - | - | - | - | - | - |
| 7.Short-termprofitsharingplan | - | - | - | - | - | - |
| 8.Other | 740,936.71 | 7,971,976.69 | - | 7,748,496.31 | - | 964,417.09 |
| Total | 375,284,193.12 | 609,982,040.88 | - | 772,315,202.61 | - | 212,951,031.39 |
(3)ListofDefinedContributionPlan
| Item | Beginningbalance | Increase | Increasebymerger | Decrease | Decreasebylosingcontrollingright | Endingbalance | |
| 1.Basicpensionbenefits | 1,147,799.70 | 56,897,467.97 | - | 52,418,177.12 | - | 5,627,090.55 | |
Item
| Item | Beginningbalance | Increase | Increasebymerger | Decrease | Decreasebylosingcontrollingright | Endingbalance | |
| 2.Unemploymentinsurance | 74,574.89 | 1,624,061.96 | - | 1,541,877.32 | - | 156,759.53 | |
| 3.Annuity | - | - | - | - | - | - | |
| Total | 1,222,374.59 | 58,521,529.93 | - | 53,960,054.44 | - | 5,783,850.08 | |
TheCompany,inlinewiththerequirement,participatetheendowmentinsurance,unemploymentinsuranceschemeandsoon,accordingtothescheme,theCompanymonthlypaytotheschemeinlinewithrequirementsoflocalgovernment,exceptthemonthlypayment,theCompanynolongershoulderthefurtherpaymentobligation,therelevantexpenseoccurredwasrecordedintocurrentprofitsandlossesorrelatedassetscosts.
31.TaxesPayable
Item
| Item | Endingbalance | Beginningbalance |
| VAT | 77,338,847.17 | 127,267,736.84 |
| Corporateincometax | 166,768,782.17 | 111,659,382.84 |
| Urbanmaintenanceandconstructiontax | 2,495,329.00 | 9,508,557.03 |
| EducationfeesandlocaleducationSurcharge | 1,889,136.85 | 6,842,959.97 |
| Landusetax | 3,551,531.59 | 3,390,503.70 |
| Stampduty | 1,729,951.92 | 3,162,037.00 |
| Tariff | 2,773,064.22 | 2,867,887.18 |
| Realestatetax | 4,055,897.45 | 2,444,284.96 |
| Personalincometax | 4,206,104.39 | 1,757,048.49 |
| Fundfordisposingabandonedappliancesandelectronicproducts | 12,507,440.50 | 16,496,706.00 |
| Floodcontrolfund,fundforembankment,fundforwaterconservancyandfundforrivermanagement | 534,177.01 | 1,057,937.59 |
| Businesstax | 401,823.10 | 401,823.10 |
| Other | 372,575.80 | 1,147,327.74 |
| Total | 278,624,661.17 | 288,004,192.44 |
32.OtherPayables
| Item | Endingbalance | Beginningbalance |
| Interestpayable | 99,998,242.67 | 27,230,631.41 |
| Dividendpayable | 240,794,540.80 | - |
| Otherpayables | 2,026,237,321.94 | 1,997,426,646.33 |
| Total | 2,367,030,105.41 | 2,024,657,277.74 |
(1)InterestPayable
| Item | Endingbalance | Beginningbalance |
| Interestonborrowings | 99,998,242.67 | 27,230,631.41 |
| Total | 99,998,242.67 | 27,230,631.41 |
(2)Dividendpayable
Item
| Item | Endingbalance | Beginningbalance |
| Commonstockdividends | 240,794,540.80 | - |
| Total | 240,794,540.80 | — |
(3)OtherPayables?ListedbyNatureofAccount
| Item | Endingbalance | Beginningbalance |
| Expensespayable | 977,559,070.21 | 971,679,417.48 |
| Come-and-gomoney | 316,444,017.28 | 280,592,078.50 |
| Equitytransferpayment | 380,180,000.00 | 380,180,000.00 |
| deposit | 225,052,021.81 | 196,746,104.46 |
| Relatedpartyborrowing | 78,849,048.66 | 108,233,202.82 |
| Generationofadvances | 34,596,993.19 | 49,796,310.13 |
| Other | 13,556,170.79 | 10,199,532.94 |
| Total | 2,026,237,321.94 | 1,997,426,646.33 |
②OtherSignificantPayablesAgingoverOneYear
| Item | Endingbalance | Unpaid/Un-carry-overreason |
| Nationalenergy-savingandbenefitingpeople | 89,960,000.00 | Notpaid |
| Total | 89,960,000.00 | — |
33.CurrentPortionofNon-currentLiabilities
| Item | Endingbalance | Beginningbalance |
| Currentportionoflong-termborrowings(NoteVI-34) | - | 40,000,000.00 |
| Currentportionoflong-termpayables(NoteVI-36) | 14,095,773.04 | 111,792,404.13 |
| Total | 14,095,773.04 | 151,792,404.13 |
34.Long-termBorrowings
| Item | Endingbalance | Beginningbalance |
| Creditloan | 457,300,000.00 | 285,000,000.00 |
| Pledgeloan | 400,000,000.00 | |
| Mortgageguaranteeloan(Note①,③) | 150,000,000.00 | 50,000,000.00 |
| Pledgeguaranteeloan(Note②) | 147,400,000.00 | 150,000,000.00 |
| Graranteemoergagepledgeloan(Note④) | 130,000,000.00 | |
| Less:Currentportion(NoteVI-33) | - | 40,000,000.00 |
Item
| Item | Endingbalance | Beginningbalance |
| Total | 1,284,700,000.00 | 445,000,000.00 |
Note:①SichuanKonkatookthelanduserightwithcarryingvalueofRMB13,959,352.66asthemortgage,andCommunicationTechnologyprovidedjointandseveralliabilityguaranteefortheloan,andobtainedtheentrustedloanofRMB50millionfromSichuanGangrongInvestmentandDevelopmentGroupCo.,Ltd.②TheSubsidiaryofEconTechnology,RushanYikeEnvironmentalManagementCo.,Ltd.obtainedtheborrowingofRMB290millionfromYantaiEconomicDevelopmentZoneSub-branchofChinaEverbrightBankwiththelengthofmaturityfrom29December2016to28December2026.TheaccountsreceivableofgovernmentprocurementofRushanFinanceBureauwastakenasthepledgeduringthe29December2016to28December2026.EconTechnologyprovidedthejointliabilityguarantyatthesametime.AsofJune30,2019,theactualborrowingswasRMB14,740.00.
③KonkaGrouptookthelanduserightofGuangmingScienceandTechnologyCenterwiththecarryingvalueofRMB38,694,416.25asthepledge,andobtainedthelong-termborrowingofRMB10millionformShenzhenBranchofGuangdongHuaxingBankCo.,Ltd.④AnhuiKonkatooktheplantswithcarryingvalueofRMB145,466,005.9andlanduserightwithcarryingvalueofRMB45,651,427.59asmortgage,andKonkaGroupprovidedthejointliabilityguaranty，andobtainedtheborrowingofRMB13millionfromMa’anshanBranchofChinaMinshengBankCo.,Ltd.
35.BondsPayable
(1)ListofBondsPayable
| Item | Endingbalance | Sameperiodoflastyear |
| Non-publicofferingcorporatebonds | 3,489,910,901.50 | - |
| Total | 3,489,910,901.50 | - |
(2)Increase/DecreaseofBondsPayable(ExcludingOtherFinancialInstrumentClassifiedasFinancialLiabilitiessuchasPreferredSharesandPerpetualBonds)
| Bondsname | Parvalue | Issuingdate | Duration | Issuingamount | Beginningbalance |
| 19Konka01 | 1,000,000,000.00 | 14January2019 | 2+1years | 996,500,000.00 | - |
| 19Konka02 | 1,500,000,000.00 | 14January2019 | 3years | 1,494,750,000.00 | - |
| 19Konka03 | 500,000,000.00 | 3June2019 | 2+1years | 498,250,000.00 | - |
| 19Konka04 | 500,000,000.00 | 3June2019 | 3years | 498,250,000.00 | - |
Total
| Total | 3,500,000,000.00 | —— | —— | 3,487,750,000.00 | - |
(Continued)
| Bondsname | Thecurrentissue | Withdrawalofinterestbyparvalue | Amortizationofpremiumanddepreciation | RepaymentintheReportingPeriod | Endingbalance |
| 19Konka01 | 996,500,000.00 | 23,194,444.46 | 748,427.69 | - | 997,248,427.69 |
| 19Konka02 | 1,494,750,000.00 | 34,791,666.66 | 1,122,641.53 | - | 1,495,872,641.53 |
| 19Konka03 | 498,250,000.00 | 1,750,000.00 | 144,916.14 | - | 498,394,916.14 |
| 19Konka04 | 498,250,000.00 | 1,827,777.78 | 144,916.14 | - | 498,394,916.14 |
| Total | 3,487,750,000.00 | 61,563,888.90 | 2,160,901.50 | - | 3,489,910,901.50 |
36.Long-termPayables
| Item | Endingbalance | Beginningbalance |
| Accruedfinancingleaseoutlay | 237,618,009.57 | 240,167,001.54 |
| Less:Currentportion(NoteVI-33) | 14,095,773.04 | 111,792,404.13 |
| Total | 223,522,236.53 | 128,374,597.41 |
37.Long-termPayrollPayable
(1)ListofLong-termPayrollPayable
| Item | Endingbalance | Beginningbalance |
| I.Terminationbenefits-netliabilitiesofdefinedcontributionplans | 5,670,450.62 | 8,792,614.98 |
| II.Terminationbenefits | - | - |
| III.Otherlong-termwelfare | - | - |
| Total | 5,670,450.62 | 8,792,614.98 |
(2)ChangesinDefinedBenefitPlans
①Obligationpresentvalueofdefinedbenefitplans:
| Item | Reportingperiod | Sameperiodoflastyear |
| I.Beginningbalance | 8,792,614.98 | 13,361,821.86 |
| II.Definedbenefitcostrecordedintocurrentprofitsandlosses | - | - |
| 1.Currentservicecost | - | - |
Item
| Item | Reportingperiod | Sameperiodoflastyear |
| 2.Previousservicecost | - | - |
| 3.Settlementgains(“－”forloss) | - | - |
| 4.Netinterest | - | - |
| III.Thecostofdefinedbenefitrecordedintoothercomprehensiveincome | - | - |
| 1.Actuarialgains(“－”forloss) | - | - |
| IV.Otherchanges | 3,122,164.36 | 1,921,578.32 |
| 1.Considerationpaidwhensettled | - | - |
| 2.Welfarepaid | 3,122,164.36 | 1,921,578.32 |
| V.Endingbalance | 5,670,450.62 | 11,440,243.54 |
②Notestotheinfluenceofthecontentandrelatedriskofdefinedbenefitpensionschemestothefuturecashflows,timeanduncertaintyoftheCompany:
Duetoupgradingandreconstructionofcurrentworksitesofthesubsidiary,TelecommunicationTechnology,itistoadjustthelaborrelationsaccordingtoImplementationMeasuresforAccompanyingEmployeesinmanufacturingsystemofShenzhenKonkaTelecommunicationTechnologyCo.,Ltd.OnthepremisetobalancetheCompany’andemployees’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
| Expectedaveragelifeexpectancy | Overlegalemeritusage | — |
| Expectedcompensationgrowthrate | 0% | — |
38.Provisions
| Item | Beginningbalance | Endingbalance | Reasonforformation |
| Pendinglitigations | 21,566,306.86 | - | Litigation(Note) |
| Other | 206,591.51 | 1,597,591.51 | Contractconsideration |
| Total | 21,772,898.37 | 1,597,591.51 | —— |
39.DeferredIncome
Item
| Item | Beginningbalance | Increase | Decrease | Decreasebylosingcontrollingright | Endingbalance | Reasonforformation |
| Governmentsubsidies | 112,899,128.24 | 111,514,600.00 | 16,980,258.41 | 124,999.94 | 207,308,469.89 | Relatedtoassets/relatedtoincome |
| Total | 112,899,128.24 | 111,514,600.00 | 16,980,258.41 | 124,999.94 | 207,308,469.89 | — |
Ofwhich,itemsrelatedtogovernmentsubsidies:
| Item | Beginningbalance | Amountofnewlysubsidy | Amountrecordedintonon-operatingincomeintheReportingPeriod | AmountrecordedintootherincomeintheReportingPeriod | Decreasebylosingcontrollingright | Endingbalance | Relatedtoassets/relatedincome |
| SpecialfundofFinanceBureaufordigitaltelevisionproductionlineupgrading | 399,999.84 | - | - | 100,000.02 | - | 299,999.82 | Relatedtoassets |
| Specialfundfordevelopmentofequipmentmanufacturingindustry | 320,940.00 | - | - | 80,235.00 | - | 240,705.00 | Relatedtoassets |
| SpecialfundforstrategicemergingindustryofFinanceBureauofDongguan | 1,800,000.00 | - | - | 300,000.00 | - | 1,500,000.00 | Relatedtoassets |
| AspecialsubsidygrantedbytheDongguangovernmentforthetransformationandupgradingof16groupsofenterprisesofprocessingtrade | 23,220.00 | - | - | 5,805.00 | - | 17,415.00 | Relatedtoassets |
| Specialfundforindustrialstructuraladjustment | 999,999.84 | - | - | 100,000.02 | - | 899,999.82 | Relatedtoassets |
Item
| Item | Beginningbalance | Amountofnewlysubsidy | Amountrecordedintonon-operatingincomeintheReportingPeriod | AmountrecordedintootherincomeintheReportingPeriod | Decreasebylosingcontrollingright | Endingbalance | Relatedtoassets/relatedincome |
| Specialfundof2010-2012industrialtechnology | 1,260,000.00 | - | - | 210,000.00 | - | 1,050,000.00 | Relatedtoassets |
| Specialfundoftransformationofinformationandautomationfortraditionaltelevisionproductionline | 4,797,149.98 | - | - | 479,715.00 | - | 4,317,434.98 | Relatedtoassets |
| SubsidyforR&DinstrumentofChuzhouEconomicDevelopmentZone | 149,316.57 | - | - | 28,900.02 | - | 120,416.55 | Relatedtoassets |
| Wholemachineintegrationofmodule | 1,575,000.00 | - | - | 150,000.00 | - | 1,425,000.00 | Relatedtoassets |
| EnterprisedevelopmentprojectofprovincialEconomyandInformationTechnologyCommittee | 676,666.56 | - | - | 145,000.02 | - | 531,666.54 | Relatedtoassets |
| ProvincialsubsidyforR&DinstrumentfromDepartmentofScienceandTechnology | 139,683.23 | - | - | 28,900.02 | - | 110,783.21 | Relatedtoassets |
| Provincialmajorspecialprojectsin2017 | 1,880,000.00 | - | - | 240,000.00 | - | 1,640,000.00 | Relatedtoassets |
| ColorsmartTVmanufacturingdemonstrationofdigitalworkshop | 166,666.80 | - | - | 49,999.98 | - | 116,666.82 | Relatedtoassets |
| R&DandindustrializationofLEDenergy-savingIPTV | 492,638.20 | - | - | 123,159.48 | - | 369,478.72 | Relatedtoassets |
| SubsidyforR&DinstrumentofChuzhouFinanceandTechnologyBureau | 208,083.17 | - | - | 113,500.02 | - | 94,583.15 | Relatedtoassets |
Item
| Item | Beginningbalance | Amountofnewlysubsidy | Amountrecordedintonon-operatingincomeintheReportingPeriod | AmountrecordedintootherincomeintheReportingPeriod | Decreasebylosingcontrollingright | Endingbalance | Relatedtoassets/relatedincome |
| SubsidyforR&DinstrumentofAnhuiProvincialDepartmentofFinance | 177,650.00 | - | - | 96,900.00 | - | 80,750.00 | Relatedtoassets |
| SubsidyforR&DinstrumentofChuzhouEconomic-TechnologicalDevelopmentArea | 435,083.21 | - | - | 113,500.02 | - | 321,583.19 | Relatedtoassets |
| R&DandindustrializationofLCDmodules(NDRC) | 149,999.80 | - | - | 25,000.02 | - | 124,999.78 | Relatedtoassets |
| R&DandindustrializationofLCDmodules(TechnologyBureau) | 300,000.20 | - | - | 49,999.98 | - | 250,000.22 | Relatedtoassets |
| ProjectofdisplayterminalsmartplantwithnewpatternbasedonNB-IOT | 3,003,000.00 | - | - | 409,500.00 | - | 2,593,500.00 | Relatedtoassets |
| Clusterdevelopmentzoneofintelligentappliances | 304,930.89 | - | - | 79,547.22 | - | 225,383.67 | Relatedtoassets |
| SubsidyforR&DinstrumentofDepartmentofScienceandTechnologyofAnhui | 221,250.00 | - | - | 22,500.00 | - | 198,750.00 | Relatedtoassets |
| SubsidyforR&DinstrumentofDepartmentofScienceandTechnologyofAnhui(2018) | 47,200.00 | - | - | 4,800.00 | - | 42,400.00 | Relatedtoassets |
| Subsidyfortransformationofenvironmentalprotectionproject | 59,000.00 | - | - | 6,000.00 | - | 53,000.00 | Relatedtoassets |
| Provincialspecialfundforrobotproject | - | 900,000.00 | - | 30,000.00 | - | 870,000.00 | Relatedtoassets |
| Newapplicationservicesystemofmobilesmartterminal | 2,013,583.52 | - | - | 373,899.96 | - | 1,639,683.56 | Relatedtoassets |
Item
| Item | Beginningbalance | Amountofnewlysubsidy | Amountrecordedintonon-operatingincomeintheReportingPeriod | AmountrecordedintootherincomeintheReportingPeriod | Decreasebylosingcontrollingright | Endingbalance | Relatedtoassets/relatedincome |
| R&Dofkeytechnologiesofinformationsafetysystemformobilesmartterminal | 1,315,187.04 | - | - | 240,000.00 | - | 1,075,187.04 | Relatedtoassets |
| Industrializationofmobileinternetand4thgenerationmobilecommunicationindustry | 2,219,077.41 | - | - | 267,895.02 | - | 1,951,182.39 | Relatedtoassets |
| Deferredincome—Mirrorcomplexaluminumwithhighpowerandhighheat-dissipationLED | 26,959.57 | - | - | 4,000.08 | - | 22,959.49 | Relatedtoassets |
| Deferredincome—Processingtechnologyofthermalconductivementalplate | 53,249.88 | 4,500.00 | 48,749.88 | Relatedtoassets | |||
| Deferredincome—Mirrorcomplexaluminumithhighpowerandhighheat-dissipationCOB-LED | 59,133.78 | - | - | 2,119.98 | - | 57,013.80 | Relatedtoassets |
| Deferredincome—PCBprintinginkandanti-overflowknifecoater | 150,000.00 | - | - | - | - | 150,000.00 | Relatedtoassets |
| Deferredincome—Innovationoftechnology | 168,981.80 | 200,000.00 | - | 14,080.46 | - | 354,901.34 | Relatedtoassets |
| Deferredincome—Technologyupgradeofhighheat-dissipationandhighaccuracyPCB | - | 394,700.00 | - | 47,196.08 | - | 347,503.92 | Relatedtoassets |
| R&DforDIDLCDvideowallapplicableforstrangeweatherlikerain,snowandhaze,etc. | 149,999.96 | - | - | 25,000.02 | 124,999.94 | - | Relatedtoassets |
| SubsidyofChinaMerchantsofZhifu | 8,500,000.06 | - | - | 999,999.96 | - | 7,500,000.10 | Relatedtoassets |
| SubsidyforPhaseIIofKonkaZhifuLifeScienceInnovationCenter | - | 10,000,000.00 | - | 4,999,999.99 | - | 5,000,000.01 | Relatedtoassets |
Item
| Item | Beginningbalance | Amountofnewlysubsidy | Amountrecordedintonon-operatingincomeintheReportingPeriod | AmountrecordedintootherincomeintheReportingPeriod | Decreasebylosingcontrollingright | Endingbalance | Relatedtoassets/relatedincome |
| Awardofcars(Kaiyi)forSichuanKonkaasexcellententerprise--HarborAdministrationCommissionofYibin | - | 79,900.00 | - | 1,119.54 | - | 78,780.46 | Relatedtoassets |
| Auditadjustment--SpecialfundaccountingforRushanYike | 1,000,000.00 | - | - | - | - | 1,000,000.00 | Relatedtoassets |
| SpecialfundofR&Dcenter | 1,750,000.00 | - | - | - | - | 1,750,000.00 | Relatedtoincome |
| Yuecaijiao(2018)No.47noticeofspecialfundforstrengtheningintellectualpropertyprotection/70%ofPatentaward(30%attributabletoHuajin) | 200,000.00 | -60,000.00 | - | - | - | 140,000.00 | Relatedtoassets |
| Research,developmentandindustrializationofdigitalproductsofsynergeticinterconnection | 2,600,000.00 | - | - | - | - | 2,600,000.00 | Relatedtoassets |
| EFIsystemofautomobileengine | 320,000.00 | - | - | - | - | 320,000.00 | Relatedtoassets |
| R&DandindustrializationofInformationTerminalbasedontheIGRS | 1,400,000.00 | - | - | - | - | 1,400,000.00 | Relatedtoincome |
| Research,developmentandindustrializationofMajortechnologyofLEDbacklightFPTV | 750,000.17 | - | - | 499,999.98 | - | 250,000.19 | Relatedtoassets |
| ProvincialprojectofinnovationplatforminscienceandtechnologyinCooperationofProduction,TeachingandResearch | 448,000.00 | 96,000.00 | 352,000.00 | Relatedtoassets |
Item
| Item | Beginningbalance | Amountofnewlysubsidy | Amountrecordedintonon-operatingincomeintheReportingPeriod | AmountrecordedintootherincomeintheReportingPeriod | Decreasebylosingcontrollingright | Endingbalance | Relatedtoassets/relatedincome |
| DigitalsmartTVwithindependentaudio-visualstandardofthreenetworkscombination | 16,666.47 | 16,666.47 | - | Relatedtoassets | |||
| Multi-screenterminalproductsofthreenetworkscombination | 560,000.09 | 139,999.98 | 420,000.11 | Relatedtoassets | |||
| AVS/DRAterminalandmatchedcorechipR&D | 2,435,333.22 | 645,333.57 | 1,789,999.65 | Relatedtoassets | |||
| Research,developmentandindustrializationofnewsmartTVofman-machineinteraction | 1,577,067.83 | 525,689.34 | 1,051,378.49 | Relatedtoassets | |||
| R&Dandengineeringof3DTVTerminal | 1,300,000.00 | 1,300,000.00 | Relatedtoassets | ||||
| User-centeredvideoswiththreenetworkscombination | 80,000.00 | 80,000.00 | Relatedtoassets | ||||
| EmbeddedOSdevelopmentandterminalsystemdevelopmentforTVapplication | 1,492,270.06 | 229,579.98 | 1,262,690.08 | Relatedtoassets | |||
| SmartTVandsystemsupportingplatformofthreenetworkscombination | 666,666.80 | 199,999.98 | 466,666.82 | Relatedtoassets | |||
| Research,productionandindustrializationsmartterminalsystemofnext-generationinternet | 5,780,097.10 | 990,873.78 | 4,789,223.32 | Relatedtoassets | |||
| SatelliteReceivingFacilitybasedonsafeandreliablechips | 1,000,000.00 | 1,000,000.00 | Relatedtoassets | ||||
| SmartTVindustrialchainofKonkaGroupCo.,Ltd. | 15,354,500.00 | 2,247,000.00 | 13,107,500.00 | Relatedtoassets |
Item
| Item | Beginningbalance | Amountofnewlysubsidy | Amountrecordedintonon-operatingincomeintheReportingPeriod | AmountrecordedintootherincomeintheReportingPeriod | Decreasebylosingcontrollingright | Endingbalance | Relatedtoassets/relatedincome |
| Glasses-free3DSmartLCDTVwithMulti-viewandHighDefinition | 1,500,000.00 | 1,500,000.00 | Relatedtoassets | ||||
| Research,developmentandindustrializationprojectofnewtwo-channel3DsmartTV | 1,184,166.75 | 202,999.98 | 981,166.77 | Relatedtoassets | |||
| Laboratoryprojectofnext-generationKonkamultimediaterminaltechnology | 3,500,000.06 | 499,999.98 | 3,000,000.08 | Relatedtoassets | |||
| ProjectofcirculareconomyandenergyconservationandemissionreductionforKonkaR&DBuildingIntelligentEngineering | 390,000.00 | 156,000.00 | 234,000.00 | Relatedtoassets | |||
| Comprehensiveintegrationandinnovationprojectofleanmanufacturingimplementationsystem | 2,100,000.00 | 2,100,000.00 | Relatedtoassets | ||||
| Real-timeSynthesisofTrue3DVideowithContinuousViewpoint | 1,420,000.00 | 1,420,000.00 | Relatedtoassets | ||||
| R&DofUSTLaserProjectionSmartTV | 1,375,000.00 | 150,000.00 | 1,225,000.00 | Relatedtoassets | |||
| FundsofShenzhenIndustrialDesignCenterfromShenzhenEconomic,TradeandInformationin2015 | 3,000,000.00 | 3,000,000.00 | Relatedtoassets | ||||
| KonkaSmartHomeProjectofConstructingCloudSmartControlPlatform | 3,620,000.00 | 361,999.98 | 3,258,000.02 | Relatedtoassets | |||
| InvestmentitemslocatedintheweaksectorofShenzhenindustriallinkin2017 | 4,500,000.00 | 4,500,000.00 | Relatedtoassets |
Item
| Item | Beginningbalance | Amountofnewlysubsidy | Amountrecordedintonon-operatingincomeintheReportingPeriod | AmountrecordedintootherincomeintheReportingPeriod | Decreasebylosingcontrollingright | Endingbalance | Relatedtoassets/relatedincome |
| DesignandachievementtransformationofsurfaceOLEDV9XseriesTV | 100,000,000.00 | 100,000,000.00 | Relatedtoassets | ||||
| SubsidyforrenewalofoldelevatorsinNanshanDistrict | 1,960,000.00 | 1,960,000.00 | Relatedtoassets | ||||
| R&DofdoubleHDROLEDsmarttelevisionandindustrialization | 755,708.38 | 45,342.48 | 710,365.90 | Relatedtoassets | |||
| R&Dandindustrializationofoperationsystemforexploitingusersbasedonbigdata | 13,300,000.00 | 13,300,000.00 | Relatedtoassets | ||||
| Total | 1,320,000.00 | 1,320,000.00 | |||||
| 112,899,128.24 | 111,514,600.00 | - | 16,980,258.41 | 124,999.94 | 207,308,469.89 |
40.ShareCapital
| Item | Beginningbalance | Increase/decrease(+/-) | Endingbalance | ||||
| Newsharesissued | Bonusshares | Bonusissuefromprofit | Other | Subtotal | |||
| Thesumofshares | 2,407,945,408.00 | - | - | - | - | - | 2,407,945,408.00 |
41.CapitalReserves
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Capitalpremium | 7,393,378.55 | - | - | 7,393,378.55 |
| Othercapitalreserves | 200,963,245.66 | 29,405,337.77 | - | 230,368,583.43 |
Item
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Total | 208,356,624.21 | 29,405,337.77 | - | 237,761,961.98 |
Note:OthercapitalrecervesincreaseintheReportingPeriodwasmainlycausedbytheincreaseofRMB29,405,337.77ofnon-controllinginterests.
42.OtherComprehensiveIncome
| Item | Beginningbalance | ReportingPeriod | Endingbalance | ||||
| IncomebeforetaxationintheCurrentPeriod | Less:RecordedinothercomprehensiveincomeinpriorperiodandtransferredinprofitorlossintheCurrentPeriod | Less:Incometaxexpense | AttributabletoownersoftheCompanyastheparentaftertax | Attributabletonon-controllinginterestsaftertax | |||
| I.Itemsthatwillnotbereclassifiedtoprofitorloss | -4,800,000.00 | - | -4,800,000.00 | ||||
| Ofwhich:Changescausedbyremeasurementsondefinedbenefitpensionschemes | - | ||||||
| Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheeuitymethod | - | ||||||
| Changesinfairvalueofotherequityinstrumentinvestment | -4,800,000.00 | -4,800,000.00 | |||||
Item
| Item | Beginningbalance | ReportingPeriod | Endingbalance | ||||
| IncomebeforetaxationintheCurrentPeriod | Less:RecordedinothercomprehensiveincomeinpriorperiodandtransferredinprofitorlossintheCurrentPeriod | Less:Incometaxexpense | AttributabletoownersoftheCompanyastheparentaftertax | Attributabletonon-controllinginterestsaftertax | |||
| Changesinfairvalueofenterprisecreditrisk | - | ||||||
| II.Itemsthatwillbereclassifiedtoprofitorloss | -10,538,219.08 | 1,691,887.67 | 1,140,113.31 | 551,774.36 | -9,398,105.77 | ||
| Ofwhich:Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheeuitymethod | -2,397,350.96 | -2,397,350.96 | |||||
| Changesinfairvalueofotherequityinstrumentinvestment | |||||||
| Amountoffinancialassetsreclassifiedtoothercomprehensiveincome | |||||||
| Impairmentprovisionofotherequityinvestmentcredit | |||||||
| Reserveforcashflowhedges | |||||||
Item
| Item | Beginningbalance | ReportingPeriod | Endingbalance | ||||
| IncomebeforetaxationintheCurrentPeriod | Less:RecordedinothercomprehensiveincomeinpriorperiodandtransferredinprofitorlossintheCurrentPeriod | Less:Incometaxexpense | AttributabletoownersoftheCompanyastheparentaftertax | Attributabletonon-controllinginterestsaftertax | |||
| Defferencesarisingfromthetranslationofforeigncurrencydenominatedfinancialstatements | -8,140,868.12 | 1,691,887.67 | 1,140,113.31 | 551,774.36 | -7,000,754.81 | ||
| Total | -10,538,219.08 | 1,691,887.67 | - | - | -3,659,886.69 | 551,774.36 | -14,198,105.77 |
43.Specialreserve
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Safetyproductioncosts | - | 97,613.57 | 25,876.49 | 71,737.08 |
| Total | - | 97,613.57 | 25,876.49 | 71,737.08 |
44.SurplusReserves
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Statutorysurplusreserves | 973,502,519.62 | 973,502,519.62 | ||
| Discretionalsurplusreserves | 254,062,265.57 | 254,062,265.57 | ||
| Total | 1,227,564,785.19 | 1,227,564,785.19 |
Note:BasedontheregulationsoftheCorporationLawandConstitution,theCompanyshouldwithdraw10%ofthestatutorysurplusreserves
accordingtothenetprofits.Iftheaccumulatedamountofthestatutorysurplusreservesexceededthe50%oftheregisteredcapital,theCompanycouldnomorewithdraw.TheCompanycanwithdrawthediscretionalsurplusreservesafterwithdrawingthestatutorysurplusreserves.Thediscretionalsurplusreservescanbeusedtomakeupforthepreviouslossesortoincreasesharecapitalonceapproved.
45.RetainedEarnings
Item
| Item | ReportingPeriod | Sameperiodoflastyear |
| Beginningbalanceofretainedearningsbeforeadjustments | 4,271,408,192.21 | 4,260,125,492.57 |
| Totalbeginningbalanceofretainedearningsbeforeadjustments(increase+,decrease-) | -2,884,254.62 | - |
| Beginningbalanceofretainedearningsafteradjustments | 4,268,523,937.59 | 4,260,125,492.57 |
| Add:NetprofitattributabletoownersoftheCompanyastheparent | 352,767,020.73 | 411,289,744.68 |
| Less:Withdrawalofstatutorysurplusreserves | - | 9,919,910.40 |
| Withdrawalofdiscretionalsurplusreserves | - | - |
| Dividendofordinarysharespayable | 240,794,540.80 | 390,087,134.64 |
| Endingretainedearnings | 4,380,496,417.52 | 4,271,408,192.21 |
46.OperatingRevenueandCostofSales
(1)OperatingRevenueandCostofSales
| Item | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Mainoperations | 25,704,875,805.21 | 24,429,634,915.92 | 16,803,504,680.73 | 15,789,523,498.53 |
| Otheroperations | 331,567,008.63 | 244,407,455.21 | 821,910,089.09 | 652,732,946.73 |
| Total | 26,036,442,813.84 | 24,674,042,371.13 | 17,625,414,769.82 | 16,442,256,445.26 |
(2)MainOperations(Classifiedbyproduct)
| Productname | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| ColorTVbusiness | 3,844,847,424.42 | 3,596,446,860.11 | 4,963,088,596.70 | 4,352,820,070.48 |
| Mobilephone | 205,434,258.43 | 201,988,459.74 | 203,769,975.49 | 204,395,134.71 |
Productname
| Productname | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| business | ||||
| Consumerappliancesbusiness | 1,637,709,425.79 | 1,345,643,531.66 | 1,084,381,984.51 | 892,338,557.03 |
| Environmentalprotectionbusiness | 4,863,145,443.76 | 4,524,853,380.07 | 77,951,411.92 | 52,515,288.25 |
| Industry,tradeandtechnologybusiness | 14,549,000,969.03 | 14,359,602,494.69 | 10,008,880,630.62 | 9,925,786,697.58 |
| Other | 604,738,283.78 | 401,100,189.64 | 465,432,081.49 | 361,667,750.48 |
| Total | 25,704,875,805.21 | 24,429,634,915.92 | 16,803,504,680.73 | 15,789,523,498.53 |
(3)MainOperations(Classifiedbyarea)
| Area | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Domesticsales | 9,430,243,937.78 | 8,596,129,999.73 | 4,672,082,285.24 | 3,847,140,507.59 |
| Overseassales | 16,274,631,867.43 | 15,833,504,916.19 | 12,131,422,395.49 | 11,942,382,990.94 |
| Total | 25,704,875,805.21 | 24,429,634,915.92 | 16,803,504,680.73 | 15,789,523,498.53 |
(4)OtherOperations(Classifiedbyproduct)
| Productname | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Saleofmaterials | 155,282,907.18 | 160,515,894.69 | 461,460,767.54 | 463,125,455.40 |
| Maintenancecost | 12,533,794.41 | 8,001,769.58 | 23,647,020.02 | 12,451,873.87 |
| Saleofwaste | 7,864,837.52 | 1,201,540.79 | 5,528,818.17 | 885,134.95 |
| Housinglease | 50,641,453.21 | 3,277,652.49 | 55,541,441.82 | 7,877,581.44 |
| Other | 105,244,016.31 | 71,410,597.66 | 275,732,041.54 | 168,392,901.07 |
Product
name
| Productname | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Total | 331,567,008.63 | 244,407,455.21 | 821,910,089.09 | 652,732,946.73 |
(5)OperatingRevenuefromTop5Customers
| Period | Totaloperatingrevenuefromtop5customers | ProportiontooperatingrevenueofReportingPeriod(%) |
| Jan.-Juneof2019 | 8,057,091,490.94 | 30.95 |
| Jan.-Juneof2018 | 6,013,731,094.97 | 35.79 |
47.TaxesandSurtaxes
| Item | ReportingPeriod | Sameperiodoflastyear |
| Urbanmaintenanceandconstructiontax | 7,641,459.23 | 7,615,970.19 |
| Stampduty | 7,399,945.90 | 5,471,304.55 |
| Propertytax | 4,863,382.63 | 2,268,252.08 |
| Landusetax | 9,986,924.23 | 4,628,137.36 |
| Educationsurcharge | 3,628,856.00 | 3,403,425.83 |
| Localeducationsurcharge | 2,800,185.32 | 2,284,037.36 |
| Waterresourcesfund | 105,188.20 | 162,579.33 |
| Vehicleandvesselsusagetax | 19,798.20 | 3,180.00 |
| Others | 943,352.56 | 1,809,687.92 |
| Total | 37,389,092.27 | 27,646,574.62 |
Note:RefertoNoteVTaxationfordetailsofthemeasurementstandardsofvarioustaxesandsurtaxes.
48.SellingExpense
| Item | ReportingPeriod | Sameperiodoflastyear |
| Salary | 153,382,205.33 | 175,774,224.21 |
| Advertisingexpense | 193,996,682.54 | 161,559,044.17 |
| Promotionalactivities | 276,681,334.75 | 339,904,932.61 |
| LogisticFee | 179,648,240.35 | 163,966,076.58 |
| Warrantyfee | 122,339,314.15 | 121,621,614.96 |
| Taxesandfund | 333.90 | 179,335.16 |
| Businesstravelcharges | 18,079,398.08 | 16,371,700.85 |
Item
| Item | ReportingPeriod | Sameperiodoflastyear |
| Exhibitionexpenses | 13,239,462.76 | 11,801,713.36 |
| Rentalcharges | 15,818,675.70 | 15,783,834.11 |
| Businessentertainmentexpenses | 8,951,109.32 | 16,785,389.71 |
| Other | 85,809,157.48 | 79,433,208.79 |
| Total | 1,067,945,914.36 | 1,103,181,074.51 |
49.AdministrativeExpense
| Item | ReportingPeriod | Sameperiodoflastyear |
| Salary | 162,542,644.17 | 102,238,841.81 |
| Depreciationcharge | 43,538,977.71 | 30,392,140.28 |
| Consultingfees | 24,651,061.96 | 17,149,760.33 |
| Businessentertainmentexpense | 10,417,451.26 | 9,155,485.63 |
| Patentfee | 15,993,217.00 | 883,906.94 |
| Businesstravelcharges | 6,025,162.39 | 7,528,524.84 |
| Lossonscrapingofinventories | 9,030,690.19 | 6,262.35 |
| Water&electricityfees | 6,809,831.29 | 4,538,405.21 |
| Other | 68,915,606.46 | 55,925,445.18 |
| Total | 347,924,642.43 | 227,818,772.57 |
50.R&DExpense
| Item | ReportingPeriod | Sameperiodoflastyear |
| Salary | 78,671,163.98 | 77,769,494.02 |
| Expensesontrialproductionofnewproducts | 22,136,520.66 | 20,620,497.46 |
| Materialdrawingout | 29,590,093.60 | 12,709,189.86 |
| Depreciationandamortization | 5,405,384.18 | 4,370,473.11 |
| Testingfees | 2,119,728.64 | 4,849,393.59 |
| Informationcharges | 5,176,565.13 | 4,553,785.16 |
| Water&electricityfees | 2,117,684.38 | 2,907,580.11 |
| Businesstravelcharges | 1,015,830.83 | 1,325,330.17 |
| Other | 10,977,367.54 | 7,903,153.28 |
| Total | 157,210,338.94 | 137,008,896.76 |
51.FinanceCosts
Item
| Item | ReportingPeriod | Sameperiodoflastyear |
| Interestexpense | 529,683,836.52 | 138,646,255.45 |
| Less:Interestincome | 118,673,531.77 | 49,719,529.94 |
| Foreignexchangeprofitorloss | -26,237,313.27 | -72,148,811.10 |
| Other | 29,487,471.55 | 19,514,995.00 |
| Total | 414,260,463.03 | 36,292,909.41 |
52.CreditImpairmentLoss
| Item | ReportingPeriod | Sameperiodoflastyear |
| Baddebtlossonaccountsreceivable | -41,432,285.18 | —— |
| Baddebtlossonotherreceivables | -8,183,816.17 | —— |
| Baddebtlossonprepayments | 139,877.59 | —— |
| Total | -49,476,223.76 |
53.AssetImpairmentLoss
| Item | ReportingPeriod | Sameperiodoflastyear |
| Baddebtloss | —— | -13,395,642.00 |
| Inventoryfallingpriceloss | -11,717,767.29 | -46,156,458.41 |
| Total | -11,717,767.29 | -59,552,100.41 |
54.OtherIncome
| Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedintothecurrentnon-recurringprofitorloss |
| Rewardsandsubsidies | 53,667,833.01 | 18,563,333.33 | 53,667,833.01 |
| Softwaretaxrebates | 23,063,806.91 | 34,848,961.96 | - |
| Transferofdeferredincome | 16,980,258.41 | 12,105,088.11 | 16,980,258.41 |
| Supportfund | 246,506,970.00 | 48,012,477.79 | 246,506,970.00 |
| L/Cexportsubsidy | 66,369.00 | 132,738.00 | 66,369.00 |
| Landtaxrebates | 3,186,200.00 | - | 3,186,200.00 |
| Postsubsidies | 326,832.56 | 3,229,884.31 | 326,832.56 |
| Other | 86,701.47 | 6,133,800.00 | 86,701.47 |
| Rewardsandsubsidies | 343,884,971.36 | 123,026,283.50 | 320,821,164.45 |
55.InvestmentIncome
Item
| Item | ReportingPeriod | Sameperiodoflastyear |
| Long-termequityinvestmentincomemeasuredbyequitymethod | 8,541,274.56 | 6,075,182.59 |
| Investmentincomefromdisposaloflong-termequityinvestment | 274,322,718.19 | 47,126,189.12 |
| Investmentincomefromholdingoffinancialassetsatfairvaluethroughprofitorloss | —— | -82,412,478.05 |
| Investmentincomefromdisposaloffinancialassetsatfairvaluethroughprofitorloss | —— | 13,740,000.00 |
| Investmentincomefromholdingofavailable-for-salefinancialassets | —— | 17,360,398.59 |
| Investmentincomefromdisposalofavailable-for-salefinancialassets | 140,558,288.28 | 445,568,627.45 |
| Incomefromremeasurementofresidualstockrightsatfairvalueafterlosingcontrolpower | -10,285,883.02 | —— |
| Incomefrompurchaseoffinancialproductsandentrustloans | 34,766,808.03 | —— |
| Transferofequityinvestmentbyequitymethodintofinancialassets | 111,257,821.88 | 84,300,652.01 |
| Total | 559,161,027.92 | 531,758,571.71 |
56.GainonChangesinFairValue
| Sources | ReportingPeriod | Sameperiodoflastyear |
| Financialassetsatfairvaluethroughprofitorloss | —— | 59,855,412.48 |
| Ofwhich:Gainonchangesinfairvalueofderivativefinancialinstruments | —— | 59,855,412.48 |
| Tradingfinancialassets | -3,005,381.67 | —— |
| Total | -3,005,381.67 | 59,855,412.48 |
57.AssetDisposalIncome
| Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Fixedassetsdisposalincome | 199,561,596.99 | 89,814.27 | 199,561,596.99 |
| Intangibleassetsdisposalincome | 94,144,243.65 | 63,632,291.11 | 94,144,243.65 |
Item
| Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Total | 293,705,840.64 | 63,722,105.38 | 293,705,840.64 |
58.Non-operatingIncome
| Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Gainsonthedamageandscrappingofnon-currentassets | 193,548.46 | 94,061.30 | 193,548.46 |
| GovernmentsubsidiesunrelatedtothenormaloperationoftheCompany | - | 11,461,703.35 | - |
| Compensationandpenaltyincome | 10,431,951.61 | 870,715.65 | 10,431,951.61 |
| Other | 11,643,942.02 | 14,791,012.67 | 11,643,942.02 |
| Total | 22,269,442.09 | 27,217,492.97 | 22,269,442.09 |
GovernmentSubsidiesRecordedintoCurrentProfitorLoss:
| Item | ReportingPeriod | Sameperiodoflastyear | Relatedtotheassets/relatedtoincome | ||||
| Recordedintonon-operatingincome | Recordedintootherincome | Offsetcosts | Recordedintonon-operatingincome | Recordedintootherincome | Offsetcosts | ||
| Rewardsandsubsidies | - | - | - | 10,185,622.66 | - | - | 与收益相关 |
| Other | - | - | - | 1,276,080.69 | - | - | 与收益相关 |
| Total | - | - | - | 11,461,703.35 | - | - | |
59.Non-operatingExpense
| Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedintothecurrentnon-recurringprofitorloss |
| Lossesondamageandscrapingofnon-currentassets | 660,874.41 | 1,671,547.63 | 660,874.41 |
| Compensationexpense | 4,603.40 | 3,500.00 | 4,603.40 |
| Donations | 675,833.69 | 20,000.00 | 675,833.69 |
| Other | 2,128,430.01 | 4,256,701.94 | 2,128,430.01 |
Item
| Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedintothecurrentnon-recurringprofitorloss |
| Total | 3,469,741.51 | 5,951,749.57 | 3,469,741.51 |
60.IncomeTaxExpense
(1)ListsofIncomeTaxExpense
| Item | ReportingPeriod | Sameperiodoflastyear |
| Currentincometaxexpense | 216,231,934.45 | 59,240,226.94 |
| Deferredincometaxexpense | -173,118,956.35 | -76,686,276.07 |
| Total | 43,112,978.10 | -17,446,049.13 |
(2)AdjustmentProcessofAccountingProfitandIncomeTaxExpense
| Item | ReportingPeriod |
| Profitbeforetaxation | 489,022,159.46 |
| Currentincometaxexpenseaccountedatstatutory/applicabletaxrate | 122,255,539.87 |
| Influenceofapplyingdifferenttaxratesbysubsidiaries | -51,887,118.22 |
| Influenceofincometaxbeforeadjustment | -3,847,489.30 |
| Influenceofnon-taxableincome | 9,582,807.30 |
| Influenceofnotdeductablecosts,expensesandlosses | 7,747,424.23 |
| Influenceofdeductablelossofunrecognizeddeferredincometaxassetsinpriorperiod | -17,256,404.67 |
| InfluenceofdeductabletemporarydifferenceordeductablelossesofunrecognizeddeferredincometaxintheReportingPeriod | 8,385,318.90 |
| Changesinthebalanceofdeferredincometaxassets/liabilitiesinpreviousperiodduetoadjustmentoftaxrate | —— |
| Other | -64,668,684.92 |
| Incometaxexpense | 10,311,393.19 |
61.OtherComprehensiveIncomeRefertoNoteVI-42fordetails.
62.CashFlowStatement
(1)CashGeneratedfromOtherOperatingActivities
| Item | ReportingPeriod | Sameperiodoflastyear |
| Commercialfactoringaccountsreceived | 663,814,079.96 | 1,177,791,975.34 |
Item
| Item | ReportingPeriod | Sameperiodoflastyear |
| Intercoursefunds | 47,127,011.48 | 87,455,725.93 |
| Incomefromgovernmentsubsidy | 411,764,189.92 | 97,520,522.22 |
| Frontmoneyandguaranteedeposit | 240,170,401.69 | 19,955,669.93 |
| Interestincomefrombankdeposits | 11,849,162.63 | 6,703,808.76 |
| Incomefromwaste | 7,604,938.22 | 3,377,283.28 |
| Repaymentofindividualborrowings | 6,769,448.83 | 2,206,730.89 |
| Compensationfromsuppliers | 13,655,189.62 | 30,537,543.95 |
| Temporaryreceivedrepairfund | - | 17,717.50 |
| Incomefrompenaltyanddefaultmoney | 2,010,832.06 | 245,081.28 |
| Otherincome | 744,030,565.64 | 51,447,417.30 |
| Total | 2,148,795,820.05 | 1,477,259,476.38 |
(2)CashUsedinOtherOperatingActivities
| Item | ReportingPeriod | Sameperiodoflastyear |
| Thecommercialfactoringpayment | 380,423,237.70 | 1,607,828,551.79 |
| Expenseforcashpayment | 731,676,310.00 | 643,840,207.45 |
| Paymentmadeonbehalf | 8,037,121.64 | 18,580,685.28 |
| Paymentforguaranteedeposit,cashdepositandrepair | 283,418,660.42 | 24,577,163.43 |
| Prettycashforemployees | 15,670,997.69 | 8,894,518.49 |
| Expenseforbankhandlingcharges | 16,648,496.25 | 19,513,440.38 |
| Donationexpense | 558,404.69 | 10,000.00 |
| Defaultmoney | 41,154.49 | 29,600.00 |
| Otherexpense | 555,462,001.38 | 24,179,903.70 |
Item
| Item | ReportingPeriod | Sameperiodoflastyear |
| Total | 1,991,936,384.26 | 2,347,454,070.52 |
(3)CashGeneratedfromOtherInvestingActivities
| Item | ReportingPeriod | Sameperiodoflastyear |
| Recoveryoffinancialproducts | 653,954,166.67 | 942,900,000.00 |
| Theprincipalandinterestoftheentrustedloanwerereceived. | 742,912,711.75 | - |
| Total | 1,396,866,878.42 | 942,900,000.00 |
(4)CashUsedinOtherInvestingActivities
| Item | ReportingPeriod | Sameperiodoflastyear |
| Purchaseoffinancialproducts | 700,000,000.00 | 774,730,000.00 |
| Other | 33,420.00 | 100,000,000.00 |
| Total | 700,033,420.00 | 874,730,000.00 |
(5)CashGeneratedfromOtherFinancingActivities
| Item | ReportingPeriod | Sameperiodoflastyear |
| Receivingentrusedloans | 200,000,000.00 | - |
| Other | 150,346,627.50 | 1,023,076.93 |
| Total | 350,346,627.50 | 1,023,076.93 |
(6)CashUsedinOtherFinancingActivities
| Item | ReportingPeriod | Sameperiodoflastyear |
| Repaymentofentrustedloans | 67,293,304.13 | |
| Financelease | 167,576,689.17 | |
| Financingexpense | 30,011,935.42 | 22,612,122.48 |
| Total | 264,881,928.72 | 22,612,122.48 |
63.SupplementalInformationforCashFlowStatement
(1)SupplementalInformationforCashFlowStatement
| Supplementalinformation | ReportingPeriod | Sameperiodoflastyear |
| 1.Reconciliationofnetprofittonetcashflowsgeneratedfromoperatingactivities: | ||
| Netprofit | 478,710,766.27 | 408,732,161.88 |
Supplementalinformation
| Supplementalinformation | ReportingPeriod | Sameperiodoflastyear |
| Add:Provisionforimpairmentofassets | 61,193,991.05 | 59,552,100.41 |
| Depreciationoffixedassets,oil-gasassets,andproductivelivingassets | 174,167,944.26 | 99,977,217.61 |
| Amortizationofintangibleassets | 12,518,556.49 | 6,800,013.68 |
| Amortizationoflong-termprepaidexpenses | 43,303,200.03 | 39,491,886.63 |
| Lossesondisposaloffixedassets,intangibleassetsandotherlong-livedassets(gains:negative) | -293,705,840.64 | -63,722,105.38 |
| Lossesonscrapoffixedassets(gains:negative) | 467,325.95 | 1,577,486.33 |
| Lossesonchangesinfairvalue(gains:negative) | 3,005,381.67 | -59,855,412.48 |
| Financecosts(gains:negative) | 442,704,098.64 | 138,646,255.45 |
| Investmentloss(gains:negative) | -559,161,027.92 | -531,929,987.83 |
| Decreaseindeferredincometaxassets(gains:negative) | -176,759,673.67 | -139,323,718.64 |
| Increaseindeferredincometaxliabilities(“-”meansdecrease) | 3,492,398.43 | 51,576,456.37 |
| Decreaseininventories(gains:negative) | -525,393,810.42 | -200,692,963.10 |
| Decreaseinaccountsreceivablegeneratedfromoperatingactivities(gains:negative) | -2,059,798,271.86 | -1,290,880,669.75 |
| Increaseinaccountspayableusedinoperatingactivities(decrease:negative) | 369,279,048.36 | -358,107,427.04 |
| Other | -16,980,258.41 | - |
| Netcashgeneratedfrom/usedinoperatingactivities | -2,042,956,171.77 | -1,838,158,705.86 |
| 2.Significantinvestingandfinancingactivitieswithoutinvolvementofcashreceiptsandpayments: | ||
| Transferofdebttocapital | - | |
| Currentportionofconvertiblecorporatebonds | - | |
| Fixedassetsleasedinbyfinancing | - | |
| 3.Netincrease/decreaseofcashandcashequivalent: | ||
| Endingbalanceofcash | 4,701,245,534.53 | 3,761,988,635.66 |
Supplementalinformation
| Supplementalinformation | ReportingPeriod | Sameperiodoflastyear |
| Less:Beginningbalanceofcash | 3,434,149,481.72 | 3,097,899,703.76 |
| Add:Endingbalanceofcashequivalents | - | |
| Less:Beginningbalanceofcashequivalents | - | |
| Netincreaseincashandcashequivalents | 1,267,096,052.81 | 664,088,931.90 |
(2)NetCashReceivefromDisposalofSubsidiaries
| Item | Amount |
| CashorcashequivalentsreceivedintheReportingPeriodfromdisposalofsubsidiariesintheCurrentPeriod | 101,020,500.00 |
| Ofwhich:ChuzhouKonkaTID | 63,520,500.00 |
| KonkaE-display | 37,500,000.00 |
| Less:cashandcashequivalentsheldbysubsidiariesonthedateoflosingcontrolpower | 68,345,326.75 |
| Ofwhich:ChuzhouKonkaTID | 35,782,809.20 |
| KonkaE-display | 32,562,517.55 |
| Netcashreceivedfromdisposalofsubsidiaries | 32,675,173.25 |
(3)CashandCashEquivalents
| Item | Endingbalance | Beginningbalance |
| I.Cash | 4,701,245,534.53 | 3,761,988,635.66 |
| Including:Cashonhand | 343,490.38 | 122,746.45 |
| Bankdepositondemand | 4,700,902,044.15 | 3,761,865,889.21 |
| II.Endingbalanceofcashandcashequivalents | 4,701,245,534.53 | 3,761,988,635.66 |
64.AssetswithRestrictedOwnershiporRighttoUse
| Item | Endingcarryingvalue(RMB’0,000) | Reasonforrestriction |
| Monetarycapital | 96,902.16 | OfwhichRMB579.7213millionisvariousnon-callablemargindeposit;RMB315millionistimedeposit;RMB49.0818millionisthefundofsupervisorrepaid;RMB19.8millionisthedepositpledgedforloans;RMB3.22millionisblockedfundsforlitigation;RMB2.1985millionisrestrictedforotherreasons. |
Item
| Item | Endingcarryingvalue(RMB’0,000) | Reasonforrestriction |
| Notesreceivable | 118,688.30 | Asof30June2019,theCompanypledgednotesreceivablewithcarryingvalueofRMB1186.883millionforconductingcomprehensivefinancingbusinessessuchasopeningofbanker’sacceptancebill,L/C,L/Gandtradefinancing. |
| Fixedassets | 36,202.64 | Formortgageborrowings.Referto25.Short-termBorrowingsinNoteVIFormortgageborrowings.Referto34.Short-termBorrowingsinNoteVI |
| Intangibleassets | 13,805.57 | Formortgageborrowings.Referto25.Short-termBorrowingsinNoteVIFormortgageborrowings.Referto34Short-termBorrowingsinNoteVI |
| Long-termreceivables | 34,941.65 | Forpledgeborrowings.Referto34Short-termBorrowingsinNoteVI |
| Total | 300,540.32 |
65.ForeignCurrencyMonetaryItems
(1)ForeignCurrencyMonetaryItems
| Item | Endingforeigncurrencybalance | Exchangerate | EndingbalanceconvertedtoRMB |
| Monetarycapital | |||
| Ofwhich:USD | 78,554,119.28 | 6.87470 | 540,036,003.81 |
| EUR | 99,161.51 | 7.81700 | 775,145.52 |
| HKD | 12,165,085.98 | 0.87966 | 10,701,139.53 |
| Accountsreceivable | |||
| Ofwhich:USD | 184,788,743.39 | 6.87470 | 1,270,367,174.18 |
| HKD | 3,082,190.84 | 0.87966 | 2,711,279.99 |
| AUD | 49,764.00 | 4.81560 | 239,643.52 |
| Otherreceivables | |||
| Ofwhich:USD | 26,115,881.89 | 6.87470 | 179,538,853.23 |
| Ofwhich:USD | 7,487,218.79 | 0.87966 | 6,586,206.88 |
Item
| Item | Endingforeigncurrencybalance | Exchangerate | EndingbalanceconvertedtoRMB |
| Ofwhich:USD | 118,160,661.74 | 6.87470 | 812,319,101.26 |
| HKD | 1,531,358.04 | 0.87966 | 1,347,074.41 |
| Otherpayables | |||
| Ofwhich:HKD | 30,933,727.30 | 0.87966 | 27,211,162.56 |
| Short-termborrowings | |||
| Ofwhich:USD | 139,691,704.64 | 6.87470 | 960,338,561.89 |
| Interestpayable | |||
| Ofwhich:USD | 803,078.36 | 6.87470 | 5,520,922.80 |
(2)NotestoOverseasEntitiesThesignificantoverseasentitiesincludeHongKongKonka,KonkaElectricalAppliancesInternationalTrading,ChainKingdomMemoryTechnologiesCo.,Ltd.,KangjietongandJialiInternational.ThemainoverseasoperatingplaceisHongKong.TheCompany’srecordingcurrencyisHKDsincethemaincurrencyincirculationinHongKongisHKD.
66.ArbitrageRefertorelevantcontentsinitemsnotesofin2.FinancialAssetsatFairValuethroughProfitorLossinNoteVI.
67.GovernmentSubsidy
(1)BasicInformationonGovernmentSubsidy
| Category | Amount | Listeditems | Amountrecordedinthecurrentprofitorloss |
| SubsidyforKonkaZhifuLifeScienceInnovationCenterPhaseII | 10,000,000.00 | Deferredincome/Otherincome | 4,999,999.99 |
| Rewardsandsubsidies | 53,667,833.01 | Otherincome | 53,667,833.01 |
| Taxrebatesofsoftware | 23,063,806.91 | Otherincome | 23,063,806.91 |
| Supportfund | 66,369.00 | Otherincome | 66,369.00 |
| SubsidyforL/Cexport | 326,832.56 | Otherincome | 326,832.56 |
| Landtaxrebates | 3,186,200.00 | Otherincome | 3,186,200.00 |
| Postsubsidies | 86,701.47 | Otherincome | 86,701.47 |
Category
| Category | Amount | Listeditems | Amountrecordedinthecurrentprofitorloss |
| Other | 346,506,970.00 | Otherincome | 246,506,970.00 |
| Provincialspecialfundforrobotproject | 900,000.00 | Deferredincome | 30,000.00 |
| Subsidyforinnovationinscienceandtechnology | 200,000.00 | Deferredincome/Otherincome | 14,080.46 |
| Technologyupgradeofhighheat-dissipationandhighaccuracyPCB | 394,700.00 | Deferredincome/Otherincome | 47196.08 |
| Awardofcars(Kaiyi)forSichuanKonkaasexcellententerprise–HarborAdministrationCommissionofYibin | 79,900.00 | Deferredincome/Otherincome | 1,119.54 |
| Total | 438,479,312.95 | 331,997,109.02 |
(2)ReturnofGovernmentSubsidyNosuchcasesintheReportingPeriod.VII.ChangesofConsolidationScope
1.DisposalofsubsidiarySingleDisposalofInvestmenttoSubsidiarythatLosingControlPower
| Nameofthesubsidiary | Theequitydisposalprice(RMB’0,000) | Equitydisposalproportion(%) | Methodofequitydisposal | Timeoflosingcontrol | Recognitionbasisforthetimeoflosingcontrolpower | Thedifferencesofenjoyednetassetsshareofthesubsidiaryincorrespondingconsolidatedstatementsofthedisposalpriceandthedisposalinvestment(RMB’0,000) |
| KonkaE-display | 3,750.00 | 15 | Transfer | 2019-6-21 | Transferofequity,operationandfinancialcontrollingpower | 3,185.78 |
| ChuzhouTechnologicalInnovationCentre | 6,352.05 | 51 | Transfer | 2019-6-28 | Transferofequity,operationandfinancialcontrollingpower | 4,554.52 |
(Continued)
Nameofthe
subsidiary
| Nameofthesubsidiary | Residualequityproportiononthedateoflosingcontrolpower(%) | Carryingvalueofresidualequityonthedateoflosingcontrolpower(RMB’0,000) | Fairvalueofresidualequityonthedateoflosingcontrolpower(RMB’0,000) | Gainsorlossesfromre-measurementofresidualequityatfairvalue(RMB’0,000) | Recognitionmethodandmainassumptionoffairvalueofresidualequityonthedateoflosingcontrolpower | Amountofothercomprehensiveincomerelatedtoformersubsidiariestransferredintoinvestmentprofitorloss |
| KonkaE-display | 45.00 | 1,692.67 | 11,250.00 | 9,557.33 | Markettradingprice | — |
| ChuzhouTechnologicalInnovationCentre | 49.00 | 1,727.04 | 6,102.95 | 4,375.91 | Markettradingprice | — |
2.ChangesinCombinationScopeforOtherReasonsNewly-establishedSubsidiariesoftheCompanyfromJan.-June2019
| Nameofthesubsidiary | Capitalofregistration | Holdingpercentage(%) | Timeandplaceofgainingcontrolpower | Wayofgaining |
| ShengxingEnterprise | 10,000,000.00 | 51.00 | 2019-1-3 | Newlyestablished |
| Youzhihui | 10,000,000.00 | 100.00 | 2019-1-24 | Newlyestablished |
| SuiningElectronicTechnologicalInnovation | 200,000,000.00 | 100.00 | 2019-2-22 | Newlyestablished |
| XiaojiaTechnology | 10,000,000.00 | 100.00 | 2019-3-5 | Newlyestablished |
| SmartTechnology | 20,000,000.00 | 51.00 | 2019-3-12 | Newlyestablished |
| KonkaHuanjia(Henan) | 50,000,000.00 | 51.00 | 2019-4-1 | Newlyestablished |
| LaizhouLairunSewageTreatmentCo.,Ltd. | 56,361,600.00 | 24.14 | 2019-4-11 | Newlyestablished |
| FunanKangrunWatreCo.,Ltd. | 122,500,000.00 | 40.55 | 2019-5-10 | Newlyestablished |
| WeifangSikangInvestmentOperationCo.,Ltd. | 150,000,000.00 | 32.97 | 2019-5-10 | Newlyestablished |
| YiheElectronic | 51.00 | 2019-5-14 | Newly |
Nameofthe
subsidiary
| Nameofthesubsidiary | Capitalofregistration | Holdingpercentage(%) | Timeandplaceofgainingcontrolpower | Wayofgaining |
| 10,000,000.00 | established | |||
| LushanKangrunWaterTreatmentCo.,Ltd. | 100,000,000.00 | 45.44 | 2019-6-3 | Newlyestablished |
| ShenzhenHuanan | 90,000,000.00 | 80.00 | 2019-6-4 | Newlyestablished |
| ChongqingKonka | 120,000,000.00 | 100.00 | 2019-6-6 | Newlyestablished |
| DongguanKonkaInvestment | 100,000,000.00 | 100.00 | 2019-6-28 | Newlyestablished |
VIII.EquityinOtherEntities
1.EquityinSubsidiary
(1)Subsidiaries
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| 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 |
Name
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| Cross-BorderKechuang | Shenzhen,Guangdong | Shenzhen,Guangdong | OtherITserviceindustrynotlistedclearly | - | 26.01 | Establishmentorinvestment |
| 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 |
| 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,Guangdong | Shenzhen,Guangdong | Manufacturingindustry | 75.00 | 25.00 | Establishmentorinvestment |
| 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 |
Name
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| 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 |
| 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 | 95.78 | - | Establishmentorinvestment |
| BeijingKonkaElectronic | Beijing | Beijing | Saleofhomeappliance | 100.00 | - | Establishmentorinvestment |
| KonkaLeasing | TianjinPilotFreeTradeZone | TianjinPilotFreeTradeZone | Leasingindustry | - | 100.00 | Establishmentorinvestment |
| FittingsTechnology | Shenzhen,Guangdong | Shenzhen,Guangdong | Investmentholding | 75.00 | 25.00 | Establishmentorinvestment |
| BoluoKonkaPrecision | Boluo,Guangdong | Boluo,Guangdong | Manufacturingindustry | - | 100.00 | Establishmentorinvestment |
Name
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| XiamenDalong | Xiamen,Fujian | Xiamen,Fujian | Commerce | - | 69.23 | Establishmentorinvestment |
| BoluoKonka | Boluo,Guangdong | Boluo,Guangdong | Manufacturingindustry | - | 100.00 | Establishmentorinvestment |
| HongKongKonka | HongKong,China | HongKong,China | InternationalTrading | 100.00 | - | Establishmentorinvestment |
| KonkaHouseholdAppliancesInvestment | HongKong,China | HongKong,China | Investmentholding | - | 100.00 | Establishmentorinvestment |
| ChainKingdomMemoryTechnologies | HongKong,China | HongKong,China | InternationalTrading | - | 51.00 | Establishmentorinvestment |
| ChainKingdomMemoryTechnologies(Shenzhen) | 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 |
| 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 |
Name
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| 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,Sichuan | Yibin,Sichuan | Serviceindustry | 51.00 | - | Establishmentorinvestment |
| 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 |
| 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 |
| 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 |
Name
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| LaizhouLairunEnvironmentalProtection | Yantai,Shandong | Yantai,Shandong | Environmentaltechnologyserviceindustry | - | 27.54 | 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 | Environmentaltechnologyserviceindustry | - | 51.00 | Establishmentorinvestment |
| 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 |
Name
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| 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 |
| 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 |
| ShenzhenKONSEMI | Shenzhen,Guangdong | Shenzhen,Guangdong | Semi-conductor | 100.00 | - | Establishmentorinvestment |
Name
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| ShenzhenMeixin | Shenzhen,Guangdong | Shenzhen,Guangdong | Commerce | - | 51.00 | Establishmentorinvestment |
| HefeiKONSEMI | Hefei,Anhui | Hefei,Anhui | Designofintegratedcircuit | - | 51.00 | Establishmentorinvestment |
| ShenzhenNianhua | Shenzhen,Guangdong | Shenzhen,Guangdong | Commercialservice | 100.00 | - | Establishmentorinvestment |
| 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 |
| YiheElectronic | Hefei,Anhui | Hefei,Anhui | Wholesaleandretailindustry | - | 51.00 | Establishmentorinvestment |
| KonkaHuanjia(Henan) | Lankao,Henan | Lankao,Henan | Technologypromotionandapplicationservice | - | 51.00 | Establishmentorinvestment |
| XiaojiaTechnology | Shenzhen,Guangdong | Shenzhen,Guangdong | Wholesaleandretailindustry | - | 100.00 | Establishmentorinvestment |
| SuiningElectronicTechnologicalInnovation | Suining,Sichuan | Suining,Sichuan | Commercialservice | 100.00 | - | Establishmentorinvestment |
| ChongqingKonka | Chongqing | Chongqing | Softwareandinformationserviceindustry | - | 100.00 | Establishmentorinvestment |
| SmartTechnology | Yibin,Sichuan | Yibin,Sichuan | Softwareandinformationserviceindustry | - | 51.00 | Establishmentorinvestment |
| LaizhouLairunSewageTreatmentCo.,Ltd. | Yantai,Shandong | Yantai,Shandong | Environmentalprotectionandenvironmentmanagement | - | 24.14 | Establishmentorinvestment |
| FunanKangrunWatreCo.,Ltd. | Fuyang,Anhui | Fuyang,Anhui | Environmentaltechnologyserviceindustry | - | 40.55 | Establishmentorinvestment |
Name
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| ShengxingEnterprise | Shenzhen,Guangdong | Shenzhen,Guangdong | Commercialservice | - | 51.00 | Establishmentorinvestment |
| ShenzhenHuanan | Shenzhen,Guangdong | Shenzhen,Guangdong | Capitalmarketservice | - | 80.00 | Establishmentorinvestment |
| WeifengSikangInvestmentandOperationCo.,Ltd. | Weifang,Shandong | Weifang,Shandong | Commercialservice | - | 32.98 | Establishmentorinvestment |
| LushanKangrunEnvironmentTreatmentCo.,Ltd. | Pingdingshan,Henan | Pingdingshan,Henan | Environmentalprotectionandenvironmentmanagement | - | 45.44 | Establishmentorinvestment |
| Youzhihui | Shenzhen,Guangdong | Shenzhen,Guangdong | Softwareandinformationserviceindustry | - | 100.00 | Establishmentorinvestment |
| DongguanKonkaInvestment | Dongguan,Guangdong | Dongguan,Guangdong | Commercialservice | 100.00 | - | Establishmentorinvestment |
| XiangkangTelecommunication | HongKong,China | HongKong,China | Manufacturingindustry | - | 100.00 | Establishmentorinvestment |
(2)SignificantNon-wholly-ownedSubsidiary
| Name | Shareholdingproportionofnon-controllinginterests(%) | Theprofitorlossattributabletothenon-controllinginterests | Declaringdividendsdistributedtonon-controllinginterests | Balanceofnon-controllinginterestsattheperiod-end |
| KonkaHuanjia | 49.00 | 43,900,738.09 | - | 156,944,346.44 |
| Kangjietong | 49.00 | 7,349,838.13 | - | 8,350,971.45 |
(3)TheMainFinancialInformationofSignificantNotWholly-ownedSubsidiary
| Name | Endingbalance | |||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliability | Totalliabilities | |
| KonkaHuanjia | 2,052,738,106.37 | 11,814,608.94 | 2,064,552,715.31 | 1,744,258,130.73 | - | 1,744,258,130.73 |
| Kangjietong | 666,718,434.81 | 144,458.44 | 666,862,893.25 | 649,820,094.38 | - | 649,820,094.38 |
(Continued)
| Name | Beginningbalance |
Currentassets
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliability | Totalliabilities | |
| KonkaHuanjia | 787,177,009.78 | 7,754,884.48 | 794,931,894.26 | 564,230,652.73 | - | 564,230,652.73 |
| Kangjietong | 552,691,289.36 | 190,605.71 | 552,881,895.07 | 551,093,788.93 | - | 551,093,788.93 |
| Name | ReportingPeriod | |||
| Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
| KonkaHuanjia | 3,907,011,852.57 | 89,593,343.05 | 89,593,343.05 | 205,598,381.24 |
| Kangjietong | 4,295,624,063.46 | 14,999,669.64 | 15,282,794.68 | -77,887,373.05 |
(Continued)
| Name | Sameperiodoflastyear | |||
| Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
| KonkaHuanjia | - | -85,624.00 | -85,624.00 | -23,524.00 |
| Kangjietong | - | -208,307.50 | -184,703.75 | 10,969,529.71 |
2.TheTransactionoftheCompanywithItsOwner’sEquityShareChangedbutStillControllingtheSubsidiary
(1)NotetotheOwner’sEquityShareChangedinSubsidiaryOn10April2019,E2infonon-controllinginterestsincreasedthetheinvestmenttoE2infoandothershareholdersrenouncedpre-emptionrightsofcorrespondingnewly-increasedregisteredcapital.Aftercompletingtheaboveincrease,theCompany’sshareholdingratioofE2infois95.7766%,anditstillbecontrolledbytheCompanyandisstillincludedinthescopeofconsolidation.
(2)TheTransaction’sInfluenceontheEquityofNon-controllingInterestsandtheOwner'sEquityAttributabletotheCompanyastheParent
| Item | E2info |
| Disposalconsideration | - |
| —cash | 31,666,666.66 |
| —fairvalueofnon-cashassets | - |
| Totaldisposalconsideration | 31,666,666.66 |
| Less:Shareofnetassetsaccountedbypercentageofstockrightsdisposed | 2,261,328.89 |
Item
| Item | E2info |
| Difference | 29,405,337.77 |
| Ofwhich:Adjustmentofcapitalreserves | 29,405,337.77 |
| Adjustmentofsurplusreserve | - |
| Adjustmentofretainedearnings | - |
3.EquityinAssociatedEnterprises
(1)SignificantAssociatedEnterprises
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Accountingtreatmentoftheinvestmenttoassociatedenterprise | |
| Directly | Indirectly | |||||
| ChutianDragonCo.,Ltd. | Dongguan | Dongguan | Manufacturingindustryincomputer,communicationandotherelectronicequipment | 21.95 | - | 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. | WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | ShenzhenYaodeTechnologyCo.,Ltd. | KunshanKonkaElectronicsTechnologyCo.,Ltd. | |
| Currentassets | 1,207,329,193.60 | 277,952,551.38 | 722,353,178.12 | 377,689,521.02 |
| Non-currentassets | 254,585,080.00 | 480,549,307.71 | 59,389,129.52 | 234,144,645.82 |
| Totalassets | 1,461,914,273.60 | 758,501,859.09 | 781,742,307.64 | 611,834,166.84 |
| Currentliabilities | 474,053,819.02 | 175,746,683.09 | 245,842,169.76 | 304,276,068.37 |
| Non-currentliability | 13,397,492.07 | 99,714,468.48 | - | 4,500,856.91 |
Totalliabilities
| Totalliabilities | 487,451,311.09 | 275,461,151.57 | 245,842,169.76 | 308,776,925.28 |
| Equityofnon-controllinginterests | 1,294,915.48 | 1,575,172.15 | - | - |
| EquityattributabletoshareholdersoftheCompanyastheparent | 973,168,047.03 | 481,465,535.37 | 535,900,137.88 | 303,057,241.56 |
| Shareofnetassetsaccountedbyshareholdingpercentage | 224,663,128.08 | 97,328,729.51 | 114,256,368.01 | 187,448,765.87 |
| Adjustedevents | ||||
| -Goodwill | 413,461,970.35 | 160,562,143.79 | 109,570,069.72 | - |
| -Unrealizedinternalsalesgainandloss | - | - | - | |
| -Other | 8,433,857.82 | |||
| Carryingvalueofequityinvestmenttoassociatedenterprises | 638,125,098.43 | 257,890,873.30 | 223,826,437.73 | 195,882,623.69 |
| Fairvalueofequityinvestmenttojointventureswithpublicoffer | - | - | - | - |
| Operatingrevenue | 510,594,502.58 | 114,986,207.34 | 420,482,080.93 | 283,867,107.18 |
| Financecosts | -868,947.60 | 2,633,870.27 | 11,059,244.18 | 498,876.04 |
| Incometaxexpense | 7,946,521.81 | 4,799,304.12 | 2,465,250.56 | - |
| Netprofit | 56,746,353.10 | 28,075,014.13 | 8,078,012.77 | -9,820,087.97 |
| Netprofitfromdiscontinuedoperations | - | - | - | - |
| Othercomprehensive | - | - | - | - |
(Continued)
Item
| Item | Beginningbalance/Thesameperiodoflastyear | |||
| ChutianDragonCo.,Ltd. | WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | ShenzhenYaodeTechnologyCo.,Ltd. | KunshanKonkaElectronicsTechnologyCo.,Ltd. | |
| Currentassets | 1,222,095,636.91 | 230,469,218.29 | 698,493,882.82 | 132,379,197.79 |
| Non-currentassets | 278,261,091.56 | 365,139,896.53 | 95,652,906.71 | 322,419,882.21 |
| Totalassets | 1,500,356,728.47 | 595,609,114.82 | 794,146,789.53 | 454,799,080.00 |
| Currentliabilities | 515,045,146.59 | 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 | 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 | 458,087,380.88 | 563,203,827.28 | 392,368,589.75 |
| Shareofnetassetsaccountedbyshareholdingpercentage | 211,383,634.58 | 91,708,111.68 | 112,640,765.46 | 192,260,608.98 |
| income | ||||
| Totalcomprehensiveincome | 56,746,353.10 | 28,075,014.13 | 8,078,012.77 | -9,820,087.97 |
| DividendsreceivedfromjointventureintheReportingPeriod | - | - | - | - |
Adjustedevents
| Adjustedevents | ||||
| -Goodwill | 413,461,970.35 | 160,562,143.79 | 109,570,069.72 | - |
| -Unrealizedinternalsalesgainandloss | - | - | - | - |
| -Other | - | - | - | 8,433,857.82 |
| Carryingvalueofequityinvestmenttoassociatedenterprises | 624,845,604.93 | 252,270,255.47 | 222,210,835.18 | 200,694,466.80 |
| Fairvalueofequityinvestmenttojointventureswithpublicoffer | - | - | - | - |
| Operatingrevenue | 486,019,598.26 | 95,131,035.31 | 319,742,579.72 | 649,068,015.15 |
| Financecosts | -3,172,333.74 | 164,372.53 | 7,373,783.33 | -3,467,057.33 |
| Incometaxexpense | 13,415,113.49 | 4,000,799.52 | 2,534,205.92 | 0 |
| Netprofit | 64,781,109.89 | 26,066,324.30 | 18,526,218.16 | 7,321,158.81 |
| Netprofitfromdiscontinuedoperations | — | — | — | — |
| Othercomprehensiveincome | — | — | — | — |
| Totalcomprehensiveincome | 64,781,109.89 | 26,066,324.30 | 18,526,218.16 | 7,321,158.81 |
| DividendsreceivedfromjointventureintheReportingPeriod | — | — | — | — |
IX.TheRiskRelatedtoFinancialInstrumentsTheCompany’smainfinancialinstrumentsincludeequityinvestment,creditinvestment,borrowings,accountsreceivable,accountspayable,etc.DetailsofthevariousfinancialinstrumentsareshownintherelevantnotestoAnnotationVI.Risksrelatedtothesefinancial
instruments,andriskmanagementpoliciestheCompanyhasadoptedtoreducetheserisksaredescribedasfollows.TheCompanymanagementmanagesandmonitorstheriskexposureinordertoensuretheaboveriskstobecontrolledinalimitedscope.TheCompanyusesensitivityanalysistechnologytoanalyzethereasonableofriskvariables,influenceofprobablechangestothecurrentprofitorlossandStockholders’equity.Becauserarelyanyriskvariableschangeinisolation,andthecorrelationbetweenvariablesfortheeventualimpactofthechangeofariskvariableswillhaveasignificanteffect,thus,theaforesaidcontentwasprocessingundertheassumptionofthechangeofeachvariablewasconductedindependently.(I)RiskManagementObjectivesandPoliciesThegoalsofCompanyengagedintheriskmanagementistoachievetheproperbalancebetweentherisksandbenefits,reducedthenegativeimpacttotheCompanyoperatingperformancerisktoaminimum,maximizedtheprofitsofshareholdersandotherequityinvestors.Basedontheriskmanagementgoal,thebasicstrategyoftheCompany'sriskmanagementisdetermineandanalyzethevariousrisksfacedbytheCompany,setupthebottomlineofriskandconductedappropriateriskmanagement,andtimelysupervisedvariousrisksinareliablewayandcontrolledtheriskwithintherangeoflimit.
1.MarketRisk
(1)ForeignExchangeRiskForeignexchangeriskreferstotherisksthatmayleadtolossesduetofluctuationinexchangerate.TheforeignexchangeriskbornebytheCompanyisrelatedtoUSD.ExcepttheprocurementandsalesbyUSdollarsforseveralsubsidiariesoftheCompany,suchasKonkaHongKong,KonkaElectricalAppliancesInternationalTrading,ChainKingdomMemoryTechnologies,KangjietongandJiali,etc.,theothermainbusinessesoftheCompanyweresettledbyRMB.Asof30June2019,exceptfortheassetsorliabilitiesmentionedinthetablebelow,theassetsandliabilitiesoftheCompanyaremainlythebalanceofRMB.TheforeignexchangerisksproducedbytheassetsandliabilitiesbalancemayaffectthebusinessperformanceoftheCompany.
Item
| Item | Period-end | Period-begin |
| Cashandcashequivalents | 78,554,119.28 | 135,723,407.43 |
| Accountsreceivable | 184,788,743.39 | 130,507,627.96 |
| Otherreceivables | 26,115,881.89 | 13,848,369.43 |
| Interestreceivable | - | 54,781.10 |
| Accountspayable | 118,160,661.74 | 21,644,634.75 |
Item
| Item | Period-end | Period-begin |
| Short-termborrowings | 139,691,704.64 | 208,330,389.67 |
| Interestpayable | 803,078.36 | 1,302,303.49 |
TheCompanytimelypaidattentiontotheinfluenceofchangeoftheexchangeratetotheCompany’sforeignexchangerisk,whichrequiredtheGroupandotherswhichconductedpurchaseandsalewithsettlementbyforeigncurrencytopurchaseforeigncurrencylong-termforwardcontracttolockthecostofpurchaseonforwarddatetoreducetheriskexposureofforeignexchange.Theforeignexchangerisksensitivityanalysisassumesthatalloverseasbusinessnetinvestmenthedgingandcashflowhedgingarehighlyeffective.Onthebasisoftheaboveassumptions,thepre-taxeffectsofreasonablechangesinexchangeratesoncurrentprofitsandlossesandshareholders’equityareasfollows,withothervariablesunchanged:
| Item | Changeininterestrate | Influenceonshareholders’equity |
| NetassetsinUSD | Up1.00%toRMB | 1,588,225.84 |
| NetassetsinUSD | Down1.00%toRMB | -1,588,225.84 |
(2)InterestRateRisk-CashFlowChangeRiskCashflowchangeriskcausedbyfinancialinstrumentsduetointerestratechangeisrelatedtobankloans.Byestablishinggoodrelationswithbanksandreasonableplanningofcreditline,creditvarietiesandcreditperiod,itistoguaranteesufficientbandlineofcreditandsatisfyallfinancialdemands.Moreover,itistoreducerisksofinterestrateuncertaintybyshorteningsingleloantermandestablishingrepaymentterms.TheriskofchangeincashflowoffinancialinstrumentsduetothechangeofinterestrateoftheCompanyismainlyrelatedtotheborrowingofbanks.Asof30June2019,thelong-termandshort-termborrowingshadatotalbalanceofRMB14,448,367,813.Interestraterisksensitivityanalysis:
TheSensitivityanalysistointerestrateriskwasbasedonthefollowassumption:
?Marketinterestrateschangemayaffecttheinterestincomeorexpenseofvariableratefinancialinstruments;?Forfixed-ratefinancialinstrumentsmeasuredatfairvalue,changesinmarketinterestratesonlyaffecttheirinterestincomeorexpenses;
?Forderivativefinancialinstrumentsdesignatedashedginginstruments,changesinmarketinterestratesaffecttheirfairvalue,andallinterestratehedgesareexpectedtobehighlyeffective;?Calculatethefairvaluechangesofderivativefinancialinstrumentsandotherfinancialassetsandliabilitiesusingthediscountedcashflowmethodatthemarketinterestrateonthebalancesheetdate.Onthebasisoftheaboveassumptions,thepre-taxeffectsofreasonablechangesininterestratesoncurrentprofitsandlossesandshareholders’equityareasfollows,withothervariablesunchanged:
Item
| Item | Changeininterestrate | ReportingPeriod | Sameperiodoflastyear | ||
| Influenceonprofits | Influenceonshareholders’equity | Influenceonprofits | Influenceonshareholders’equity | ||
| Interestofshort-termandlong-termborrowings | Up1% | -144,483,678.13 | -108,362,758.60 | -108,984,477.03 | -81,738,357.77 |
| Interestofshort-termandlong-termborrowings | Down1% | 144,483,678.13 | 108,362,758.60 | 108,984,477.03 | 81,738,357.77 |
2.CreditRiskOn30June2019,thebiggestcreditriskexposuremayleadtothefinancialassetslossesoftheCompanywasmainlyfromtheonepartyfailtoperformitsobligation,whichincluded:
carryingamountrecognizedinconsolidatedbalancesheet.Forfinancialinstrumentsmeasuredatfairvalue,thecarryingvaluereflectitsriskexposure,butnotthebiggestone,andthebiggestriskexposurewillchangealongwiththechangeoffuturefairvalue.Inorderthereducethecreditrisk,theCompanyestablishagroupresponseforrecognizinglineofcredit,conductingcreditapprovalandothermonitorprocedurestoensurethatthenecessarymeasureswereusedtorecycleexpiredclaims.Inaddition,theCompanyateachbalancesheetdate,revieweverysinglereceivablesrecyclingsituation,toensurethatthemoneyunabletorecyclewithdrawnprovisionforbaddebtfully.Thus,theCompanymanagementbelievedthathaveassumethecreditrisktheCompanyshoulderedhadbeengreatlyreduced.TheCompany’sworkingcapitalwasinbankwithhighercreditrating,socreditriskof
workingcapitalwaslow.Ananalysisofafinancialassetthathassufferedasingleimpairment,includingfactorsthatdeterminetheimpairmentofthefinancialasset.TheCompanyhasadoptedthenecessarypoliciestoensurethatallsalescustomershaveagoodcredithistory.Exceptfortheitemslistedinthetablebelow,thecompanyhasnoothermajorcreditconcentrationrisks.
Item
| Item | Endingbalancee | Beginningbalance |
| Accountsreceivable | ||
| CEFC(Shanghai)GroupCo.,Ltd. | 300,027,889.84 | 300,027,889.84 |
| JiangsuHongtuSanbaoHigh-TechTechnologyCo.,Ltd. | 200,000,000.00 | 200,000,000.00 |
| ElionResourcesGroupLimited. | 115,000,000.00 | 120,000,000.00 |
| JizhongEnergyInternationalLogisticsGroupCo.,Ltd. | 0.00 | 130,000,000.00 |
| ChinaNuclearEngineeringConstructionGroupCo.,Ltd. | 84,500,000.00 | 90,000,000.00 |
| CCCCFirstHarborEngineeringCo.,Ltd. | 65,221,300.00 | 0.00 |
| TahoeGroupCo,Ltd. | 50,000,000.00 | 50,000,000.00 |
| ChinaEnergyPowerFuelCo.,Ltd. | 50,000,000.00 | 50,000,000.00 |
| DSCHOLDINGSLIMITED | 24,462,454.04 | 24,421,550.36 |
| Otherreceivables | ||
| Nationalenergy-savingandbenefitingpeople(Energy-savingsubsidies) | 152,402,680.00 | 152,402,680.00 |
| ShenzhenKonkaVideo&CommunicationSystemsEngineeringCo.,Ltd. | 18,115,952.51 | 18,115,952.51 |
| ChongqingKonkaAutoElectronicCompany | 13,396,856.82 | 13,396,856.82 |
3.LiquidityRiskWhenmanagingliquidityrisk,theCompanymaintainedthemanagement’sbelievethatsupervisingthesufficientcashandcashequivalentstomeettheoperatingdemandoftheCompanyandreducetheinfluenceofthefluctuationofcashflow.Themanagementofthe
Companymonitoredtheuseofbank’sloansandguaranteedtheobservanceoftheborrowingagreements.TheCompanytookthebank’sloansasthemainfinancingchannel.TheretainedamountofloansoftheCompanybytheendof30June2019wasRMB6447.995million.(II)OffsetbetweenFinancialAssetsandFinancialLiabilitiesAttheendoftheperiod,thestatusofconfirmedfinancialassetsunderanenforceabletotaloffsetagreementorsimilaragreementisasfollows:
Item
| Item | Period-end | ||
| Totalconfirmedfinancialassets | Amountoffsetofconfirmedfinancialliabilities | Netfinancialassetslistedinthebalancesheet | |
| Otherreceivables | 4,574,341,332.80 | 4,634,560,510.88 | 60,219,178.08 |
Note:TheCompanysignedthegeneraloffsetagreementswiththebankoffinanceproducts,timedeposit,importandexportinvoicefinancing,L/Candbank’sacceptancebills.X．TheDisclosureofFairValue
1.EndingFairValueofAssetsandLiabilitiesatFairValue
| Item | Endingfairvalue | |||
| Fairvaluemeasurementitemsatlevel1 | Fairvaluemeasurementitemsatlevel2 | Fairvaluemeasurementitemsatlevel3 | Total | |
| I.Consistentfairvaluemeasurement | ||||
| (I)Tradingfinancialassets | - | - | 61,494,666.97 | 61,494,666.97 |
| 1.Financialassetsatfairvaluethroughprofitorloss | - | - | 61,494,666.97 | 61,494,666.97 |
| (1)Debtinstrumentinvestment | - | - | - | - |
| (2)Equityinstrumentinvestment | - | - | 61,494,666.97 | 61,494,666.97 |
| (3)Derivativefinancialassets | - | - | - | - |
| (II)Otherequityinvestment | - | - | - | - |
| (III)Otherequityinstrumentinvestment | - | - | 19,140,214.36 | 19,140,214.36 |
| (IV)Othernon-currentfinancialassets | - | - | 1,548,364,400.00 | 1,548,364,400.00 |
| Totalassetsofconsistentfairvaluemeasurement | - | - | 1,628,999,281.33 | 1,628,999,281.33 |
| (V)Tradingfinancialliabilities | - | - | - | - |
| Totalliabilitiesofconsistentfair | ||||
Item
| Item | Endingfairvalue | |||
| Fairvaluemeasurementitemsatlevel1 | Fairvaluemeasurementitemsatlevel2 | Fairvaluemeasurementitemsatlevel3 | Total | |
| valuemeasurement | ||||
| Totalassetsofinconsistentfairvaluemeasurement | ||||
| Totalliabilitiesofinconsistentfairvaluemeasurement | - | - | - | - |
2.MarketPriceRecognitionBasisforConsistentandInconsistentFairValueMeasurementItemsatLevel3Consistentandinconsistentfairvaluemeasurementitemsatlevel3adoptingthevalueappraisaltechniquesandthequalitativeandquantitativeinformationofimportantparametricinnon-listedequityinstrumentinvestment,theCompanyconcernedshalladoptinvestmentcostmethod,marketmultipliermethod,andnetassetsmethodtoestimatethefairvalue.TheCompanybelievesthatthefairvalueandchangesestimatedbyusingvalueappraisaltechniquesisreasonable,andwillbethemostappropriatevalueonthebalancesheetdate.XI.RelatedPartyandRelated-partyTransactions
1.InformationRelatedtotheCompanyastheParentoftheCompany
| Name | Registrationplace | Natureofbusiness | Registeredcapital | ProportionofshareheldbytheCompanyastheparentagainsttheCompany(%) | ProportionofvotingrightsownedbytheCompanyastheparentagainsttheCompany(%) |
| OverseasChineseTownEnterprisesCo. | Shenzhen | Tourism,realestate,electronicsindustry | RMB12billion | 29.999997 | 29.999997 |
Note:ThefinalcontrolleroftheCompanyisState-ownedAssetsSupervisionandAdministrationCommission
2.SubsidiariesoftheCompanyRefertoNoteVIII-1.EquityinSubsidiaries
3.InformationontheAssociatedEnterprisesoftheCompanyRefertoNoteVIII-3.EquityinAssociatedEnterprisesfordetailsofsignificantassociatedenterprisesoftheCompany.InformationonotherjointventuresorassociatedenterprisesoccurringconnectedtransactionswiththeCompanyinReportingPeriod,orformingbalanceduetoconnectedtransactionsmadeinpreviousperiod:
| Name | RelationshipwiththeCompany |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | Associatedenterprise |
Name
| Name | RelationshipwiththeCompany |
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | Associatedenterprise |
| BeijingKonkaTechnologyCo.,Ltd. | Associatedenterprise |
| BinzhouBeihaiWeiqiaoSolidWasteDisposalCo.,Ltd. | Associatedenterprise |
| OrientalHuijia(Zhuhai)AssetManagementCo.,Ltd. | Associatedenterprise |
| FeidiTechnology(Shenzhen)Co.,Ltd. | Associatedenterprise |
| GuangdongHotcommInformationTechnologyCo.,Ltd. | Associatedenterprise |
| HelongjiangLongkangZhijiaTechnologyCo.,Ltd. | Associatedenterprise |
| KonkaVentures | Associatedenterprise |
| KunshanKonkaElectronicCo.,Ltd. | Associatedenterprise |
| ShenzhenJielunteTechnologyCo.,Ltd. | Associatedenterprise |
| ShenzhenKonkaIntelligentElectricalApparatusCo.,Ltd. | Associatedenterprise |
| ShenzhenRF-LINKTechnologyCo.,Ltd. | Associatedenterprise |
| ShenzhenYaodeTechnologyCo.,Ltd. | Associatedenterprise |
| ShenzhenZhongbingKonkaTechnologyCo.,Ltd. | Associatedenterprise |
| WeihaiWaterEnvironmentalprotectionTechnologyCo.,Ltd. | Associatedenterprise |
| ChongqingQingjia | Associatedenterprise |
| ZhuhaiJinsuPlasticCo.,Ltd. | Associatedenterprise |
| GuoguangRuilian(Shenzhen)InternetTechnologyCo.,Ltd. | Associatedenterprise |
| ChuzhouKonkaTechnology&IndustryDevelopmentCo.,Ltd. | Associatedenterprise |
| HenanKonkaSmartElectricalApplianceCo.,Ltd. | Associatedenterprise |
| ShandongKonkaSmartElectricalApplianceCo.,Ltd. | Associatedenterprise |
| ShenzhenE-displayCo.,Ltd. | Associatedenterprise |
| HorgosYilingfangInformationTechnologyCo.,Ltd. | Associatedenterprise |
4.InformationonOtherRelatedParties
| Name | RelationshipwiththeCompany |
| GuoguangEasternNetwork(Beijing)Co.,Ltd. | Shareholderoftheassociatedenterprise |
| AnhuiKonkaGreenLightingTechnologyCo.,Ltd. | Subsidiaryofassociatedenterprise |
| NanjingSmartLightInformationTechnologyResearchInstituteCo.,Ltd. | Minorityshareholderofsubsidiary |
| ChengduOneBeltCommunicationEquipmentCo.,Ltd. | Minorityshareholderofsubsidiary |
| ShenzhenKonkaUnifortuneTechnologyCo.,Ltd. | Minorityshareholderofsubsidiary |
| AUJETINDUSTRYLIMITED | Minorityshareholderofsubsidiary |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | Minorityshareholderofsubsidiary |
ShenzhenHenglongtongTechnologyCo.,Ltd.
| ShenzhenHenglongtongTechnologyCo.,Ltd. | Minorityshareholderofsubsidiary |
| ShenzhenTradeLinkSupplyChainManagementCo.,Ltd. | Minorityshareholderofsubsidiary |
| RushanWaterGroupCo.,Ltd. | Minorityshareholderofsubsidiary |
| HuarunEnvironmentWaterCo.,Ltd. | Minorityshareholderofsubsidiary |
| WeihaiWaterGroupSewerageCo.,Ltd. | Minorityshareholderofsubsidiary |
| LaizhouJinzhouInvestmentCo.,Ltd. | Minorityshareholderofsubsidiary |
| DaosuiGroupEngineeringCo.,Ltd. | Minorityshareholderofsubsidiary |
| WeihaiWaterGroupCo.,Ltd. | Minorityshareholderofsubsidiary |
| ChinaTiesijuCivilEngineeringGroupCo.Ltd | Minorityshareholderofsubsidiary |
| HuanjiaGroupCo.,Ltd. | Minorityshareholderofsubsidiary |
| LaizhouUrbanInvestmentDevelopmentCo.,Ltd. | Minorityshareholderofsubsidiary |
| SubeiMongolAutonomousCountyUrbanConstructionInvestmentCo.,Ltd. | Minorityshareholderofsubsidiary |
| UNIFORTUNE（HK）COMPANYLIMITED | Majority-ownedcompanycontrolledbyminorityshareholder |
| GuanganOuqishiElectronicTechnologyCo.,Ltd. | Majority-ownedcompanycontrolledbyminorityshareholder |
| GuizhouJiaguidaTechnologyCo.,Ltd. | Majority-ownedcompanycontrolledbyminorityshareholder |
| ZhongliadaCo.,Ltd. | Majority-ownedcompanycontrolledbyminorityshareholder |
| HuJiawen | Closefamilymembersofthenon-controllinginterest |
| DaiRongxing | Closefamilymembersofthenon-controllinginterest |
| ChangrongMediaCo.,Ltd. | Thefinalcontrollerofthenon-controllinginterestofthesubsidiary |
| JiangxiMeijiIndustryCo.,Ltd. | Controlledbythefinalcontrollerofthenon-controllinginterestofthesubsidiary |
| ShenzhenZhonglianDatongSupplyChainManagementandConsultingCo.,Ltd. | Controlledbythefinalcontrollerofthenon-controllinginterestofthesubsidiary |
5.ListofRelated-partyTransactions
(1)InformationonAcquisitionofGoodsandReceptionofLaborService
①Informationonacquisitionofgoodsandreceptionoflaborservice
| Relatedparty | Content | ReportingPeriod | Sameperiodoflastyear |
| GuanganOuqishiElectronicTechnologyCo.,Ltd. | Supplychaincommoditypurchase | 253,830,553.49 | - |
| KunshanKonkaElectronicCo.,Ltd. | Purchaseofmaterialsandcommodity | 274,774,273.58 | 576,672,801.38 |
| GuizhouJiaguidaTechnologyCo.,Ltd. | Purchaseofmobilephones | 86,082,016.27 | - |
Relatedparty
| Relatedparty | Content | ReportingPeriod | Sameperiodoflastyear |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | Commoditypurchase | 15,852,710.51 | 219,735,005.00 |
| ShenzhenJielunteTechnologyCo.,Ltd.anditssubsidiaries | Purchaseofmaterials | 90,792,814.55 | 165,222,526.85 |
| ShenzhenTradeLinkSupplyChainManagementCo.,Ltd. | Supplychaincommoditypurchase | 73,460,368.85 | - |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | Commoditypurchase | 272,127,488.75 | - |
| OCTGroupanditssubsidiaries | Purchaseofmaterialsandservice | 9,225,567.47 | 13,494,613.22 |
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | Commoditypurchase | 3,139,931.77 | - |
| ZhuhaiJinsuPlasticCo.,Ltd. | Purchaseofmaterials | 6,015,944.41 | 4,146,000.00 |
| ChangrongMediaCo.,Ltd. | Advertisingagency | 896,226.41 | 1,660,000.00 |
| ShenzhenKonkaIntelligentElectricalApparatusCo.,Ltd. | Commoditypurchase | 2,468,262.65 | 289,054.46 |
| BeijingKonkaTechnologyCo.,Ltd. | Commoditypurchase | - | 1,393,783.09 |
| ShenzhenRF-LINKTechnologyCo.,Ltd. | Purchaseofmaterials | 7,129,499.00 | - |
| ShenzhenZhonglianDatongSupplyChainManagementandConsultingCo.,Ltd | Consultancy | - | 1,160,469.47 |
| ShenzhenYaodeTechnologyCo.,Ltd. | Purchaseofmaterials | 114,631.57 | - |
| GuoguangRuilian(Shenzhen)InternetTechnologyCo.,Ltd. | Commoditypurchase | - | 351,361.55 |
| HuanjiaGroupCo.,Ltd. | Commoditypurchase | 413,499,020.39 | - |
| BinzhouBeihaiWeiqiaoSolidWasteDisposalCo.,Ltd. | Purchaseservice | - | 7,391,146.29 |
②Informationofsalesofgoodsandprovisionoflaborservice
| Relatedparty | Content | ReportingPeriod | Sameperiodoflastyear |
| AUJETINDUSTRYLIMITED | Supplychaincommoditysales | 116,061,505.67 | - |
| KunshanKonkaElectronicCo.,Ltd. | Salesofmaterials | 241,955,310.50 | 422,921,017.22 |
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | Commoditysales | 352,930,313.69 | - |
GuanganOuqishiElectronicTechnologyCo.,Ltd.
| GuanganOuqishiElectronicTechnologyCo.,Ltd. | Supplychaincommoditysales | 228,125,999.21 | - |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | Salesofmaterials,provideservice | 2,174,394.52 | 102,627,704.48 |
| ShenzhenYaodeTechnologyCo.,Ltd. | Salesofmaterials | 224,738,792.69 | - |
| OCTGroupanditssubsidiaries | Salesofcommodityandprovidingservices | 18,520,935.33 | 18,646,368.89 |
| ShenzhenJielunteTechnologyCo.,Ltd.anditssubsidiaries | Providinglaborservice | 42,653,586.74 | 14,485,742.69 |
| HelongjiangLongkangZhijiaTechnologyCo.,Ltd. | Salesofcommodity | 11,863,615.67 | - |
| ZhongliandaCo.,Ltd. | Salesofmaterials | 6,785,233.07 | - |
| ShenzhenTradeLinkSupplyChainManagementCo.,Ltd. | Salesofmaterials | 3,900,956.90 | - |
| GuoguangRuilian(Shenzhen)InternetTechnologyCo.,Ltd. | Advertisingservice | 294,667.21 | - |
| GuoguangEasternNetwork(Beijing)Co.,Ltd. | Advertisingservice | 9,838.02 | 1,385,765.21 |
| FeidiTechnology(Shenzhen)Co.,Ltd.anditssubsidiaries | Rentalservice | 2,000,434.75 | - |
| ShenzhenRF-LINKTechnologyCo.,Ltd. | Rentalservice | 291,552.02 | - |
| OrientalHuijia(Zhuhai)AssetManagementCo.,Ltd. | Rentalservice | 197,959.99 | - |
| BeijngKonkaTchnologyCo.,Ltd. | Rentalservice | 325,631.95 | 7,901,215.40 |
| ShenzhenKonkaIntelligentElectricalApparatusCo.,Ltd. | Salesofcommodity | - | 3,235.90 |
| BinzhouBeihhaiWeiqiaoSolidandWasteTreatmentCo.,Ltd. | Engineeringexpense | 2,294,871.78 | - |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | Salesofmaterials | 12,761,245.95 | - |
| ChuzhouKonkaTechnology&IndustryDevelopmentCo.,Ltd. | Providinglaborservice | 1,415,094.30 | - |
| GuizhouJiaguidaTechnologyCo.,Ltd. | Salesofcommodity | 256,149.18 | - |
| HenanKonkaSmartElectricalApplianceCo.,Ltd. | Salesofcommodity | 3,412,835.40 | - |
ShandongKonkaSmartElectricalApplianceCo.,Ltd.
| ShandongKonkaSmartElectricalApplianceCo.,Ltd. | Salesofcommodity | 35,713,503.46 | - |
(2)InformationonRelated-partyLease
| Nameoflessor | Categoryofleasedassets | TheleasefeeconfirmedintheReportingPeriod | Theleasefeeconfirmedinthesameperiodoflastyear |
| OCTGroupanditssubsidiaries | Commercialresidentialbuildingandofficebuilding | 711,709.06 | - |
(3)InformationonRelated-partyGuarantee
①TheCompanywasguarantor
| Securedparty | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| AnhuiTongchuang | 1,398.00 | CNY | 2018-11-7 | 2019-11-7 | Not |
| AnhuiTongchuang | 500.00 | CNY | 2018-9-20 | 2019-8-14 | Not |
| AnhuiTongchuang | 1,057.50 | CNY | 2019-1-10 | 2019-11-14 | Not |
| AnhuiTongchuang | 3,901.00 | CNY | 2019-1-11 | 2020-1-11 | Not |
| AnhuiTongchuang | 2,018.50 | CNY | 2019-1-23 | 2020-1-23 | Not |
| AnhuiTongchuang | 3,573.53 | CNY | 2018-5-9 | - | Not |
| AnhuiTongchuang | 2,869.00 | CNY | 2018-6-19 | - | Not |
| HongKongKonka | 2,300.00 | USD | 2019-3-13 | 2020-3-13 | Not |
| HongKongKonka | 1,500.00 | USD | 2018-8-7 | 2019-8-6 | Not |
| AnhuiKonka | 10,000.00 | CNY | 2018-12-6 | 2019-12-6 | Not |
| SichuanKonka | 5,000.00 | CNY | 2018-5-28 | 2025-5-24 | Not |
| SichuanKonka | 4,000.00 | CNY | 2019-3-18 | 2022-3-17 | Not |
| XingDaHongYe | 5,800.00 | CNY | 2018-11-21 | 2020-11-21 | Not |
| XingDaHongYe | 950.00 | CNY | 2018-11-13 | 2020-11-13 | Not |
| XingDaHongYe | 3,897.52 | CNY | 2019-4-19 | 2020-4-18 | Not |
| XingDaHongYe | 1,000.00 | CNY | 2019-5-20 | 2020-5-19 | Not |
| EconTechnology | 3,135.00 | CNY | 2018-10-10 | 2019-10-10 | Not |
| EconTechnology | 703.00 | CNY | 2019-4-23 | 2020-4-22 | Not |
Securedparty
| Securedparty | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| EconTechnology | 5,000.00 | CNY | 2019-5-13 | 2020-5-12 | Not |
| JiangxiKonka | 10,000.00 | CNY | 2018-12-4 | 2019-12-31 | Not |
| JiangxiKonka | 10,000.00 | CNY | 2018-12-7 | 2019-12-6 | Not |
| JiangxiKonka | 10,900.00 | CNY | 2019-3-18 | 2021-9-18 | Not |
| JiangxiKonka | 10,000.00 | CNY | 2019-2-28 | 2020-2-28 | Not |
| JiangxiKonka | 2,500.00 | CNY | 2019-6-27 | 2020-6-26 | Not |
| XinfengMicrocrystalline | 3,550.00 | CNY | 2019-6-19 | 2020-6-18 | Not |
| AnhuiElectrical | 13,000.00 | CNY | 2019-2-2 | 2024-2-2 | Not |
| BokangPrecise | 1,779.11 | CNY | 2019-2-20 | 2021-2-20 | Not |
| ElectronicsTechnology | 3,934.74 | CNY | 2019-4-18 | 2020-4-18 | Not |
| ElectronicsTechnology | 316.39 | CNY | 2019-6-20 | 2020-5-17 | Not |
| RushanYikeWaterTreatmentCo.,Ltd. | 14,740.00 | CNY | 2016-12-29 | 2026-12-28 | Not |
| JiangxiXinxinJian’anEngineeringCo.,Ltd. | 10,000.00 | CNY | 2016-12-19 | - | Not |
| JiangxiZhongyiDecorationMaterialCo.,Ltd. | 10,000.00 | CNY | 2016-12-19 | - | Not |
| JiangxiShanshiTechnologyDevelopmentCo.,Ltd. | 10,000.00 | CNY | 2016-12-19 | - | Not |
RefertoNoteXII-2.-(2)ContingentLiabilitiesGeneratedfromProvidingDebtGuaranteesforOtherEntitiesandFinancialInfluencethereoffordetailsofexternalguaranteesoftheCompany.
②TheCompanywassecuredparty
| Guarantor: | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| ChuzhouState-ownedAssetsManagementCo.,Ltd. | 2,200.00 | CNY | 2018-12-6 | 2019-12-6 | Not |
| ShenzhenKangweiInvestmentPartnership(LimitedPartnership) | 2,450.00 | CNY | 2018-5-28 | 2025-5-24 | Not |
| ShenzhenKangweiInvestmentPartnership(LimitedPartnership) | 1,960.00 | CNY | 2019-3-18 | 2022-3-17 | Not |
Guarantor:
| Guarantor: | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| YantaiBaijiangyuanBusinessManagementCenter(LimitedPartnership) | 816.35 | CNY | 2018-10-10 | 2019-10-10 | Not |
| YantaiFengqingtaiInvestmentCenter(LimitedPartnership) | 363.03 | CNY | 2018-10-10 | 2019-10-10 | Not |
| YantaiQingrunyuanBusinessManagementCenter(LimitedPartnership) | 333.56 | CNY | 2018-10-10 | 2019-10-10 | Not |
| YantaiQingjiangchuanBusinessManagementCenter(LimitedPartnership) | 23.20 | CNY | 2018-10-10 | 2019-10-10 | Not |
| ZhuXinming | 4,900.00 | CNY | 2018-12-4 | 2019-12-31 | Not |
| ZhuXinming | 4,900.00 | CNY | 2018-12-7 | 2019-12-6 | Not |
| HunanVaryTechPackingCo.,Ltd. | 2,000.00 | CNY | 2017-4-5 | - | Not |
| HuanjiaGroupCo.,Ltd. | 24,500.00 | CNY | 2018-8-7 | 2023-8-6 | Not |
| ZhuXinmingandLengSumin | 21,165.00 | CNY | 2018-10-15 | 2020-10-14 | Not |
| WulianfengHuichuanNetworkTechnologyPartnership(LimitedPartnership) | 2,585.25 | CNY | 2018-8-28 | 2020-8-27 | Not |
| WulianfengHuichuanNetworkTechnologyPartnership(LimitedPartnership) | 1,056.34 | CNY | 2018-8-28 | 2020-8-27 | Not |
| YantaiFengqingtaiInvestmentCenter(LimitedPartnership) | 1,149.66 | CNY | 2018-8-28 | 2020-8-27 | Not |
| WulianfengHuichuanNetworkTechnologyPartnership(LimitedPartnership) | 73.47 | CNY | 2018-8-28 | 2020-8-27 | Not |
| YantaiBaijiangyuanBusinessManagementCenter(LimitedPartnership) | 5,774.37 | CNY | 2018-12-20 | 2020-12-19 | Not |
| YantaiFengqingtaiInvestmentCenter(LimitedPartnership) | 2,567.87 | CNY | 2018-12-20 | 2020-12-19 | Not |
| YantaiQingrunyuanBusinessManagementCenter(LimitedPartnership) | 2,359.42 | CNY | 2018-12-20 | 2020-12-19 | Not |
| YantaiQingjiangchuanBusinessManagementCenter(LimitedPartnership) | 164.10 | CNY | 2018-12-20 | 2020-12-19 | Not |
| HuanjiaGroupCo.,Ltd. | 49,000.00 | CNY | 2019-1-18 | 2021-1-17 | Not |
| ShenzhenMeixinqiTechnologyPartnership(LimitedPartnership) | 7,350.00 | CNY | 2019-1-29 | 2020-1-28 | Not |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | 6,370.00 | CNY | 2019-2-2 | 2024-2-2 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd. | 1,739.50 | CNY | 2019-6-19 | 2020-6-18 | Not |
Guarantor:
| Guarantor: | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| JiangxiXinzixinRealEstateCo.,Ltd. | 1,225.00 | CNY | 2019-6-27 | 2020-6-26 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd. | 5,341.00 | CNY | 2019-3-18 | 2021-9-18 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd. | 4,900.00 | CNY | 2019-4-23 | 2020-4-23 | Not |
| ShenzhenMusenEnterpriseCo.,Ltd. | 14,700.00 | CNY | 2019-3-19 | 2020-3-18 | Not |
| YantaiQingrunyuanBusinessManagementCenter(LimitedPartnership) | 74.80 | CNY | 2019-4-23 | 2022-4-23 | Not |
| YantaiQingjiangchuanBusinessManagementCenter(LimitedPartnership) | 5.20 | CNY | 2019-4-23 | 2022-4-23 | Not |
| YantaiBaijiangyuanBusinessManagementCenter(LimitedPartnership) | 183.06 | CNY | 2019-4-23 | 2022-4-23 | Not |
| YantaiFengqingtaiInvestmentCenter(LimitedPartnership) | 81.41 | CNY | 2019-4-23 | 2022-4-23 | Not |
| YantaiQingrunyuanBusinessManagementCenter(LimitedPartnership) | 532.00 | CNY | 2019-5-13 | 2022-5-12 | Not |
| YantaiQingjiangchuanBusinessManagementCenter(LimitedPartnership) | 37.00 | CNY | 2019-5-13 | 2022-5-12 | Not |
| YantaiBaijiangyuanBusinessManagementCenter(LimitedPartnership) | 1,302.00 | CNY | 2019-5-13 | 2022-5-12 | Not |
| YantaiFengqingtaiInvestmentCenter(LimitedPartnership) | 579.00 | CNY | 2019-5-13 | 2022-5-12 | Not |
| GuizhouHuajinrunTechnologyCo.,Ltd. | 26,764.00 | CNY | 2018-1-1 | 2022-4-20 | Not |
| ShenzhenHenglongtongTechnologyCo.,Ltd. | 26,764.00 | CNY | 2018-01-01 | 2022-4-20 | Not |
| HuZehong | 9,325.78 | CNY | 2018-7-1 | 2021-6-30 | Not |
| HuZehong | 4,168.70 | CNY | 2018-7-1 | 2021-6-30 | Not |
| LiChunsheng | 127.44 | CNY | 2018-7-1 | 2021-6-30 | Not |
| DaiYaojin | 127.44 | CNY | 2018-7-1 | 2021-6-30 | Not |
| LiangRuiling | 127.44 | CNY | 2018-7-1 | 2021-6-30 | Not |
| AUJETINDUSTRYLIMITED | 245.00 | USD | 2018-5-18 | 2019-5-17 | Not |
| AUJETINDUSTRYLIMITED | 73.50 | USD | 2018-8-6 | 2019-8-5 | Not |
| AUJETINDUSTRYLIMITED | 98.00 | USD | 2018-8-14 | 2019-8-13 | Not |
| AUJETINDUSTRYLIMITED | 147.00 | USD | 2018-8-17 | 2019-8-16 | Not |
Guarantor:
| Guarantor: | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| AUJETINDUSTRYLIMITED | 147.00 | USD | 2018-8-27 | 2019-8-26 | Not |
| AUJETINDUSTRYLIMITED | 98.00 | USD | 2018-9-14 | 2019-9-13 | Not |
| AUJETINDUSTRYLIMITED | 245.00 | USD | 2018-9-26 | 2019-9-25 | Not |
| AUJETINDUSTRYLIMITED | 98.00 | USD | 2018-9-28 | 2019-9-27 | Not |
| AUJETINDUSTRYLIMITED | 245.00 | USD | 2018-10-9 | 2019-10-8 | Not |
| AUJETINDUSTRYLIMITED | 686.00 | USD | 2018-10-11 | 2019-10-10 | Not |
| AUJETINDUSTRYLIMITED | 392.00 | USD | 2018-10-16 | 2019-10-15 | Not |
| AUJETINDUSTRYLIMITED | 245.00 | USD | 2018-10-23 | 2019-10-22 | Not |
| AUJETINDUSTRYLIMITED | 49.00 | USD | 2018-10-26 | 2019-10-25 | Not |
| AUJETINDUSTRYLIMITED | 171.50 | USD | 2018-11-1 | 2019-10-31 | Not |
| AUJETINDUSTRYLIMITED | 34.30 | USD | 2018-12-28 | 2019-12-27 | Not |
| AUJETINDUSTRYLIMITED | 117.60 | USD | 2019-1-23 | 2020-1-22 | Not |
| AUJETINDUSTRYLIMITED | 245.00 | USD | 2019-3-12 | 2020-3-11 | Not |
| AUJETINDUSTRYLIMITED | 73.50 | USD | 2019-5-30 | 2019-7-13 | Not |
| AUJETINDUSTRYLIMITED | 88.20 | USD | 2019-6-28 | 2020-6-27 | Not |
| GuizhouHuajinrunTechnologyCo.,Ltd. | 181.30 | USD | 2018-5-18 | 2021-12-30 | Not |
| GuizhouHuajinrunTechnologyCo.,Ltd. | 73.50 | USD | 2018-7-26 | 2021-12-30 | Not |
| GuizhouHuajinrunTechnologyCo.,Ltd. | 147.00 | USD | 2018-7-31 | 2021-12-30 | Not |
| GuizhouHuajinrunTechnologyCo.,Ltd. | 98.00 | USD | 2018-8-17 | 2021-12-30 | Not |
| GuizhouHuajinrunTechnologyCo.,Ltd. | 98.00 | USD | 2018-9-27 | 2021-12-30 | Not |
| GuizhouHuajinrunTechnologyCo.,Ltd. | 196.00 | USD | 2018-10-25 | 2021-12-30 | Not |
| GuizhouHuajinrunTechnologyCo.,Ltd. | 84.33 | USD | 2019-5-23 | 2022-4-19 | Not |
| GuizhouHuajinrunTechnologyCo.,Ltd. | 24.50 | USD | 2019-5-30 | 2021-7-12 | Not |
| GuizhouHuajinrunTechnologyCo.,Ltd. | 44.45 | USD | 2019-6-20 | 2022-4-19 | Not |
| ShenzhenKonkaUnifortuneTechnologyCo.,Ltd. | 1,470.00 | USD | 2018-9-26 | 2021-10-29 | Not |
| ShenzhenKonkaUnifortuneTechnologyCo.,Ltd. | 2,940.00 | USD | 2018-5-28 | 2021-11-1 | Not |
Guarantor:
| Guarantor: | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| WuGuorenandXiaoYongsong | 3,500.00 | USD | 2018-10-18 | 2019-10-17 | Not |
| WuGuorenandXiaoYongsong | 1,000.00 | USD | 2019-1-1 | 2019-12-31 | Not |
| WuGuorenandXiaoYongsong | 1,000.00 | USD | 2019-1-1 | 2019-12-31 | Not |
| WuGuorenandXiaoYongsong | 1,000.00 | USD | 2019-1-1 | 2019-12-31 | Not |
| WuGuorenandXiaoYongsong | 2,000.00 | USD | 2018-9-6 | 2019-9-5 | Not |
| WuGuorenandXiaoYongsong | 2,000.00 | USD | 2019-4-22 | 2019-12-31 | Not |
| WuGuorenandXiaoYongsong | 1,500.00 | USD | 2019-6-5 | 2019-12-31 | Not |
| WuGuorenandXiaoYongsong | 150.00 | USD | 2019-6-21 | 2019-12-31 | Not |
| WuGuorenandXiaoYongsong | 500.00 | USD | 2018-8-10 | 2019-8-9 | Not |
| WuGuorenandXiaoYongsong | 300.00 | USD | 2018-9-10 | 2019-9-9 | Not |
| WuGuorenandXiaoYongsong | 300.00 | USD | 2018-9-14 | 2019-9-13 | Not |
| WuGuorenandXiaoYongsong | 500.00 | USD | 2018-10-17 | 2019-10-16 | Not |
| WuGuorenandXiaoYongsong | 300.00 | USD | 2018-10-19 | 2019-10-18 | Not |
| WuGuorenandXiaoYongsong | 300.00 | USD | 2018-11-12 | 2019-11-11 | Not |
| WuGuorenandXiaoYongsong | 2,000.00 | USD | 2019-1-1 | 2019-12-31 | Not |
| WuGuorenandXiaoYongsong | 1,000.00 | USD | 2018-7-10 | 2019-7-9 | Not |
Note:TheCompanywasprovidedwithcounterguaranteeregardingentrustedloansfromtheCompanytomajority-ownedsubsidiariesbyminorityshareholdersofaforesaidmajority-ownedsubsidiaries.
(4)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% |
Relatedparty
| Relatedparty | Amount | Startdate | Enddate | Duration | Interestrate |
| OCTGroup | 140,000.00 | 25June2018 | 12April2023 | 14May2018to13May2019 | 5.00% |
| OCTGroup | 48,000.00 | 25June2018 | 12April2023 | 14May2018to9May2019 | 6.00% |
| OCTGroup | 100,000.00 | 25June2018 | 12April2023 | 19July2018to19July2019 | 6.00% |
| OCTGroup | 10,807.56 | 25June2018 | 12April2023 | 14May2019to9May2020 | 5.00% |
| OCTGroup | 22,192.44 | 22April2019 | 21August2019 | 22April2018to21August2019 | 5.00% |
| OCTGroup | 27,656.00 | 16April2019 | 15April2020 | 16April2019to15April2020 | 5.00% |
| OCTGroup | 50,000.00 | 26April2018 | 31August2019 | 26April2018to31August2019 | 5.00% |
| OCTGroup | 3,000.00 | 17December2018 | 12December2019 | 17December2018to12December2019 | 7.00% |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | 4,025.00 | 20February2019 | 19February2020 | 20February2019to19February2020 | 7.00% |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | 17October2018 | 16October2019 | 17Octorber2018to16Octorber2019 | ||
| Lending: | 41,600.00 | 8.00% | |||
| NanjingKangxingTechnologyIndustrialParkOperationandManagementCo.,Ltd. | 46,700.00 | 22October2018 | 21April2019 | 22October2018to21April2019 | 8.00% |
Relatedparty
| Relatedparty | Amount | Startdate | Enddate | Duration | Interestrate |
| NanjingKangxingTechnologyIndustrialParkOperationandManagementCo.,Ltd. | 20,500.00 | 22October2018 | 21April2020 | 22October2018to21April2020 | 8.00% |
| NanjingKangxingTechnologyIndustrialParkOperationandManagementCo.,Ltd. | 4,000.00 | 21December2018 | 20December2019 | 21December2018to20December2019 | 5.70% |
| YibinOCTSanjiangRealEstateCo.,Ltd. | 6,000.00 | 25October2018 | 24October2021 | 25October2018to24October2021 | 5.70% |
| YibinOCTSanjiangRealEstateCo.,Ltd. | 2,000.00 | 25October2018 | 24April2020 | 25October2018to24April2020 | 11.00% |
| HunanVaryTechPackingCo.,Ltd. | 890.00 | 16March2017 | 15March2019 | 16March2017to15March2019 | 8.00% |
| ChongqingQingjiaElectronicCo.,Ltd. | 10,000.00 | 12April2018 | 12April2020 | 12April2018to12April2020 | 5.40% |
Note:Theinterestexpensesofinter-bankborrowingofcapitalfromaboverelatedpartiesareasfollows:RMB117,352,255.65ofOCTGroupandRMB2,713,345.84ofChuzhouHanshangElectricApplianceCo.,Ltd.Theinterestincomeorinvestmentincomeofinter-banklendingofcapitalfromaboverelatedpartiesareasfollows:RMB82,611,530.36ofNanjingKangxingTechnologyIndustryPark,RMB928,721.17ofYibinOCTSanjiangPropertyCo.,Ltd.,RMB928,721.17ofHunanVaryTechPackingCo.,Ltd.andRMB337,714.88ofChongqingQingjiaElectronicCo.,Ltd.
(5)TransferofEquityOn21June2019,theCompanysold51%stakeinChuzhouKonkaTechnology&IndustryDevelopmentCo.,Ltd.atRMB63.5205milliontoShenzhenOverseasChineseTownCapitalInvestmentManagementCo.,Ltd.
(5)InformationonRemunerationforKeyManagementPersonnel
| Item | Reportingperiod(RMB’0,000) | Sameperiodoflastyear(RMB’0,000) |
| Remunerationforkeymanagementpersonnel | 1,075.01 | 762.33 |
6.AccountsReceivableandPayableofRelatedParty
(1)AccountsReceivable
Item
| Item | 30June2019 | 31December2018 | ||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | |
| Accountsreceivable: | ||||
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | 289,666,975.63 | 5,880,239.61 | 144,976,103.92 | 2,943,014.91 |
| GuanganOuqishiElectronicTechnologyCo.,Ltd. | 111,095,609.10 | 2,255,240.86 | 77,403,347.03 | 1,571,287.94 |
| ShenzhenYaodeTechnologyCo.,Ltd. | 102,603,146.10 | 2,082,843.87 | 38,691,654.09 | 785,440.58 |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | 34,944,423.79 | 4,607,146.63 | 35,556,676.56 | 721,800.53 |
| GuizhouJiaguidaTechnologyCo.,Ltd. | - | - | 34,560,012.48 | 701,568.25 |
| KunshanKonkaElectronicCo.,Ltd. | 28,249,771.68 | 2,080,883.27 | 25,051,883.94 | 508,553.24 |
| ShenzhenJielunteTechnologyCo.,Ltd.anditssubsidiaries | 50,644,597.44 | 1,574,179.83 | 13,445,059.89 | 272,934.72 |
| OCTGroupanditssubsidiaries | 2,314,301.24 | 46,980.32 | 13,413,924.15 | 675,135.87 |
| BinzhouBeihaiWeiqiaoSolidWasteDisposalCo.,Ltd. | 6,096,891.16 | 609,689.12 | 6,096,891.16 | 304,844.56 |
| GuoguangRuilian(Shenzhen)InternetTechnologyCo.,Ltd. | 2,916,126.00 | 59,197.36 | 3,696,532.00 | 75,039.60 |
| NanjingSmartLightInformationTechnologyResearchInstituteCo.,Ltd. | 1,500,000.00 | 30,450.00 | 1,500,000.00 | 30,450.00 |
| HelongjiangLongkangZhijiaTechnologyCo.,Ltd. | 178,459.16 | 3,622.72 | 822,825.15 | 16,703.35 |
| GuoguangEasternNetwork(Beijing)Co.,Ltd. | - | - | 430,948.43 | 8,748.25 |
| ChuzhouKonkaTechnology&IndustryDevelopmentCo.,Ltd. | 20,000.00 | 406.00 | - | - |
| HenanKonkaSmartElectricalApplianceCo.,Ltd. | 1,147,072.34 | 23,285.57 | - | - |
| ShandongKonkaSmartElectricalApplianceCo.,Ltd. | 3,603,594.81 | 73,152.97 | - | - |
| ShenzhenE-displayCo.,Ltd.anditssubsidiaries | 60,223,239.55 | 1,222,531.76 | - | - |
| ShenzhenTradeLinkSupplyChain | 626,632.22 | 12,720.63 | - | - |
Item
| Item | 30June2019 | 31December2018 | ||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | |
| ManagementCo.,Ltd. | ||||
| ChuzhouHanshangElectricApplianceCo.,Ltd. | 7,380,291.65 | 149,819.92 | - | - |
| Total | 703,211,131.87 | 20,712,390.44 | 395,645,858.80 | 8,615,521.80 |
| Notesreceivable: | ||||
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | 180,000,000.00 | - | 240,100,000.00 | - |
| HeilongjiangLongkangZhijiaTechnologyCo.,Ltd | 10,264,507.35 | |||
| Total | 190,264,507.35 | - | 240,100,000.00 | - |
| Otherreceivables: | ||||
| StaketransferofDairongxingandothercome-and-gomoney | 83,265,018.32 | 2,489,085.90 | 81,450,139.05 | 2,434,977.07 |
| JiangxiMeijiIndustryCo.,Ltd. | 99,798,640.31 | 2,205,549.95 | 74,788,640.31 | 1,652,828.95 |
| OCTGroupanditssubsidiaries | 20,911,273.00 | 9,459,496.11 | 21,310,694.38 | 8,720,919.01 |
| ChongqingQingjiaElectronicCo.,Ltd. | 9,780,111.09 | 465,340.46 | 9,433,133.32 | 210,429.15 |
| HuJiawen | 246,113.98 | 12,330.31 | 240,692.62 | 5,319.31 |
| ShenzhenJielunteTechnologyCo.,Ltd.anditssubsidiaries | 20,831.83 | 4,810.08 | 4,448.00 | 4,448.00 |
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | 200,000.00 | 4,420.00 | - | - |
| ChuzhouKonkaTechnology&IndustryDevelopmentCo.,Ltd. | 20,500.00 | 453.05 | - | - |
| GuanganOuqishiElectronicTechnologyCo.,Ltd. | 3,440,000.00 | 76,024.00 | - | - |
| HuanjiaGroupCo.,Ltd. | 30,000.00 | 663.00 | - | - |
| Total | 217,712,488.53 | 14,718,172.86 | 187,227,747.68 | 13,028,921.49 |
| Otherreceivables: | ||||
| ShenzhenRF-LINKTechnologyCo.,Ltd. | 12,585,374.02 | - | 14,086,876.64 | - |
| FeidiTechnology(Shenzhen)Co.,Ltd.anditssubsidiaries | 65,829,221.40 | - | 43,476,841.21 | - |
| Total | 78,414,595.42 | - | 57,563,717.85 | - |
| Prepayments: | - | - | ||
| ShenzhenJielunteTechnologyCo., | 29,980,819.37 | - | 29,647,649.73 | - |
Item
| Item | 30June2019 | 31December2018 | ||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | |
| Ltd.anditssubsidiaries | ||||
| ShenzhenKonkaUnifortuneTechnologyCo.,Ltd. | 28,623,157.08 | - | 28,623,157.08 | - |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | 18,495,853.23 | - | 24,076,497.42 | - |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | 38,034,057.55 | - | 4,341,793.16 | - |
| ChangrongMediaCo.,Ltd. | - | - | 800,000.00 | - |
| ShenzhenTradeLinkSupplyChainManagementCo.,Ltd. | 32,273,300.87 | - | 640,726.28 | - |
| ChongqingQingjiaElectronicCo.,Ltd. | 552,793.14 | - | 499,972.16 | - |
| BeijingKonkaTechnologyCo.,Ltd. | 158,900.00 | - | - | - |
| GuanganOuqishiElectronicTechnologyCo.,Ltd. | 14,231,785.93 | - | - | - |
| HuanjiaGroupCo.,Ltd. | 106,400,000.00 | - | - | - |
| ShenzhenE-displayCo.,Ltd.anditssubsidiaries | 31,521,705.00 | - | - | - |
| Total | 300,272,372.17 | - | 88,629,795.83 | - |
(2)AccountsPayable
| Item | 30June2019 | 31December2018 |
| Accountspayable: | ||
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | 39,335,098.55 | 134,389,975.21 |
| GuizhouJiaguidaTechnologyCo.,Ltd. | 2,178,980.37 | 64,466,384.38 |
| GuanganOuqishiElectronicTechnologyCo.,Ltd. | - | 60,730,932.43 |
| ShenzhenJielunteTechnologyCo.,Ltd.anditssubsidiaries | 19,118,416.81 | 40,696,402.04 |
| KunshanKonkaElectronicCo.,Ltd. | 58,658,005.05 | 19,799,046.85 |
| ShenzhenShangyongtongInvestmentDevelopmentCo.,Ltd. | 9,543,100.00 | 9,543,100.00 |
| ShenzhenRF-LINKTechnologyCo.,Ltd. | 497,131.87 | 1,447,949.90 |
| OCTGroupanditssubsidiaries,associatedenterprises | 11.00 | 1,289,224.82 |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | - | 1,177,928.64 |
| ShenzhenKonkaIntelligentElectricalApparatusCo.,Ltd. | 444,367.00 | 501,669.59 |
| BeijingKonkaTechnologyCo.,Ltd. | - | 259,020.69 |
| ShenzhenHenglongtongTechnologyCo.,Ltd. | - | 122,247.47 |
Item
| Item | 30June2019 | 31December2018 |
| ShenzhenYaodeTechnologyCo.,Ltd. | 107,763.39 | 77,602.03 |
| ZhuhaiJinsuPlasticCo.,Ltd. | 1,316,660.54 | 55,912.37 |
| ShenzhenTradeLinkSupplyChainManagementCo.,Ltd. | - | 38,426.68 |
| GuoguangRuilian(Shenzhen)InternetTechnologyCo.,Ltd. | - | 9,209.28 |
| HuanjiaGroupCo.,Ltd. | 13,735,733.69 | - |
| ShenzhenE-displayCo.,Ltd.anditssubsidiaries | 23,022,332.04 | - |
| ChinaRailwayNo.4EndineeringGroupCo.,Ltd. | 24,930,259.15 | - |
| Total | 192,887,859.46 | 334,605,032.38 |
| Notespayable: | ||
| ShenzhenJielunteTechnologyCo.,Ltd.anditssubsidiaries | 2,663,931.56 | 4,290,778.05 |
| ShenzhenHenglongtongTechnologyCo.,Ltd. | - | 224,422.12 |
| KunshanKonkaElectronicCo.,Ltd. | 480,971.78 | - |
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | 140,000,000.00 | |
| HuanjiaGroupCo.,Ltd. | 17,062,537.45 | |
| ShenzhenRF-LINKTechnologyCo.,Ltd. | 1,932,419.86 | |
| Total | 162,139,860.65 | 4,515,200.17 |
| Advancesfromcustomers: | ||
| UNIFORTUNE（HK）COMPANYLIMITED | 28,256,294.05 | - |
| OCTGroupanditssubsidiaries | 16,357,854.41 | 18,691,187.73 |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | - | 9,053,304.04 |
| ShenzhenTradeLinkSupplyChainManagementCo.,Ltd. | - | 1,693,620.91 |
| GuoguangRuilian(Shenzhen)InternetTechnologyCo.,Ltd. | 542,490.38 | 543,231.68 |
| BeijingKonkaTechnologyCo.,Ltd. | - | 87,748.48 |
| ShenzhenE-displayCo.,Ltd.anditssubsidiaries | 15,740,618.95 | - |
| ShenzhenTradeLinkSupplyChainManagementCo.,Ltd. | 856,854.36 | - |
| ZhongliandaCo.,Ltd. | 1,749,509.47 | - |
| NanjingSmartLightInformationTechnologyResearchInstituteCo.,Ltd. | 150,000.00 | - |
| AUJETINDUSTRYLIMITED | 6,681,828.06 | - |
| ShenzhenJielunteTechnologyCo.,Ltd.anditssubsidiaries | 53,775.28 | - |
| Total | 70,389,224.96 | 30,069,092.84 |
| Otherpayables: | ||
| ChuzhouHanshangElectricApplianceCo.,Ltd. | 78,849,048.66 | 108,380,202.82 |
Item
| Item | 30June2019 | 31December2018 |
| FeidiTechnology(Shenzhen)Co.,Ltd.anditssubsidiaries | 9,609,969.79 | 5,638,548.27 |
| ShenzhenRF-LINKTechnologyCo.,Ltd. | 6,215,250.00 | 5,250,000.00 |
| NanjingSmartLightInformationTechnologyResearchInstituteCo.,Ltd. | - | 3,004,339.72 |
| KonkaVentureCapitalInvestment(Shenzhen)Co.,Ltd. | - | 2,503,616.44 |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | - | 2,474,483.60 |
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | - | 2,135,675.57 |
| ChongqingQingjiaElectronicCo.,Ltd. | - | 1,070,875.91 |
| ShenzhenJielunteTechnologyCo.,Ltd.anditssubsidiaries | 900,000.00 | 400,000.00 |
| OCTGroupanditssubsidiaries | - | 272,218.08 |
| GuoguangRuilian(Shenzhen)InternetTechnologyCo.,Ltd. | 100,000.00 | 100,000.00 |
| ShenzhenKonkaIntelligentElectricalApparatusCo.,Ltd. | 111,875.00 | 35,755.00 |
| KunshanKonkaElectronicCo.,Ltd. | - | 10,000.00 |
| ShenzhenQiaochenghuiNetworkTechnologyCo.,Ltd. | - | 8,000.00 |
| ChangrongMediaCo.,Ltd. | - | 7,000.00 |
| AnhuiKonkaGreenLightingTechnologyCo.,Ltd. | 9,183.55 | - |
| Total | 95,795,327.00 | 131,290,715.41 |
| Interestpayable: | ||
| OCTGroupanditssubsidiaries,associatedenterprises | 8,163,418.38 | 7,429,522.22 |
| Total | 8,163,418.38 | 7,429,522.22 |
XII.CommitmentsandContingency
1.SignificantCommitments
(1)CapitalCommitment
| Item | Endingbalance | Beginningbalance |
| Commitmentssignedbuthasn’tbeenrecognizedinfinancialstatements | ||
| —Commitmentonconstructionandpurchaseoflong-livedassets | - | - |
| -Contractwithlargeamount | 1,669,759,371.47 | 1,127,089,984.26 |
-Foreigninvestmentcommitments
| -Foreigninvestmentcommitments | - | - |
| Total | 1,669,759,371.47 | 1,127,089,984.26 |
(2)OperatingLeaseCommitmentsAsofthebalancesheetdate,theirrevocableoperatingleasecommitmentsthattheCompanysignedwereasfollowed:
| Item | Endingbalance | Beginningbalance |
| Minimumleasepaymentsofirrevocableoperatinglease | ||
| 1yearafterbalancedate | 18,148,924.52 | 21,432,789.82 |
| 2yearafterbalancedate | 5,432,265.52 | 10,038,667.42 |
| 3yearafterbalancedate | 2,683,505.44 | 3,662,167.92 |
| Followingyears | 2,077,921.20 | 3,938,998.40 |
| Total | 28,342,616.68 | 39,072,623.56 |
(3)OtherCommitmentsAsof30June2019,therewerenoothersignificantcommitmentsfortheCompanytodisclose.
2.Contingency
(1)ContingentLiabilitiesGeneratedfromPendingActionandArbitrationandFinancialInfluencethereof①DuetotheproblemsofqualityandconstructiondelayinthesettlementofintelligentengineeringprojectbetweentheCompanyandShenzhenGNGCo.,Ltd.,theydidn’tagreeontherelateddeductions.OnSeptember28,2017,ShenzhenGNGCo.,Ltd.filedalawsuittoPeople’sCourtofNanshanDistrict,ShenzhenforthepaymentinprojectarrearsintheConstructionContractofKonkaR&DBuildingIntelligentEngineering,whichrequiredtheCompanytopayRMB2,770,487.13fortheprojectarrearsandRMB340,761.69fortheinterestsoftheprojectarrears.OnJuly23,2018,theCompanyfiledthecounterclaimtoShenzhenGNGCo.,Ltd.forthepaymentinprojectarrearswithRMB927,807.10,andthepaymentforthattheconstructionwasindiscrepancywiththecontractwithRMB927,807.10.Accordingtothepaperofciviljudgment(2017)Yue0305MinchuNo.18838ofPeople’sCourtofNanshanDistrictonApril27,2019,theCompanyshouldpayShenzhenGNGCo.,Ltd.forengineeringexpensewithRMB2,691,298.87,andShenzhenGNGCo.,Ltd.wasrequiredtopaytheCompanyforthepenaltywithRMB649,464.97.Thetwocompanies
refusedtoaccepttheabovejudgmentandfiledanappealtotheShenzhenIntermediatePeople’sCourt.AsoftheissuancedateofthisReport,thecasehasnotbeenheldacourthearing.
②DuetothedisputeinrentleasecontractamongtheCompany’ssubsidiary-MudanjiangAppliances,HeilongjiangJinriOptoelectronicsTechnologyCo.,Ltd.andJinyueGroupCo.,Ltd.,thePeople’sCourtofAiminDistrict,MudanjiangCity,HelongjiangProvincemadethemainciviljudgment(2016)Hei1004MinchuNo.604onAugust25,2017.Thejudgmentwasasfollows:ThedefendantsHeilongjiangJinriOptoelectronicsTechnologyCo.,Ltd.andJinyueGroupCo.,Ltd.shouldjointlypaytheplaintiff-MudanjiangAppliancesatotalofRMB3,656,910.82inoccupancyfees,rent,andinterest.OnNovenber30,2018,MudanjiangApplianceshastransferredthecreditassignmenttotheCompany,whichwasexecutedbytheCompany.AsoftheissuancedateofthisReport,ithasnotyetbeenimplementedcompletely.
③Accordingtotheciviljudgment(2018)GMCNo.110madebytheHigherPeople’sCourtofJiangxiProvinceonSeptember27,2018onthedisputesarisenfromaloancontractbetweentheminorityshareholdersofJiangxiKonka,asubsidiaryoftheCompany,andChinaGreatWallAMCJiangxiBranch,the100%equityofNanocrystalline,the100%equityofXinfengMicrocrystalineheldbyJiangxiKonkaanddepositandthecollateralunderthenameofotherrelevantguarantees;
OnSeptember30,2018,JiangxiKonkafiledanapplicationforreconsideration,andonOctober11,2018,JiangxiKonkafiledanapplicationforsupplementaryreconsideration.Accordingtooneoftheciviljudgments(2018)GMCNo.110madebytheHigherPeople’sCourtofJiangxiProvinceonNovember16,2018,thefrozenaccountofJiangxiKonkawillbereleased.
OnJuly19,2019,JiangxiKonkaappliedtotheHigherPeople’sCourtofJiangxiProvinceforaddingAVICTRUSTCO.,LTD.andNanchangRuralCommercialBankasthethirdpartytoparticipateinthelitigation.AsoftheissuancedateofthisReport,thecourthasn’tmadethejudgementoffirsttrial.
④TheCompanyheldthetradeacceptanceofShanghaiHuaxinInternationalGroupCo.,Ltd.,andtheaccepterfailedtoacceptthematurednotes.InJanuary2019,theCompany,astheprosecutor,launchedalawsuittoShenzhenIntermediatePeople’sCourtinrespectofthematurednotesofRMB50,000,000.00,claimingthattheaccepterShanghaiHuaxinandtheremoteholder(TianjinInternationalTradePetrochemicalCo.,Ltd.,KonkaCommercialFactoring(Shenzhen)Co.,Ltd.)shouldburdenthejointliabilityforsettlementofthenotes
andcorrespondingpenalinterests.Andnowthecasehasbeenofficiallyacceptedandregistered,inwhichthecourtisexecutingthepropertypreservation.AsoftheissuancedateofthisReport,thecasehasnotbeenheldacourthearing,andtheaforesaidtradeacceptancehasnotbeenhonored.TheCompanyheldthetradeacceptanceofShanghaiHuaxinInternationalGroupCo.,Ltd.,andtheaccepterfailedtoacceptthematurednotes.InFebruary2019,theCompany,astheprosecutor,launchedalawsuittoShenzhenIntermediatePeople’sCourtinrespectofthematurednotesofRMB150,000,000.00,claimingthattheaccepterShanghaiHuaxinandtheremoteholder(QingdaoBaoshuiZhongsheInternationalTradeCo.,Ltd.,DafenqiCommercialFactoring(Shenzhen)Co.,Ltd.)shouldburdenthejointliabilityforsettlementofthenotesandcorrespondingpenalinterests.Andnowthecasehasbeenofficiallyacceptedandregistered,inwhichthecourtisexecutingthepropertypreservation.AsoftheissuancedateofthisReport,thecasehasnotbeenheldacourthearing,andtheaforesaidtradeacceptancehasnotbeenhonored.
TheCompanyheldthetradeacceptanceofShanghaiHuaxinInternationalGroupCo.,Ltd.,andtheaccepterfailedtoacceptthematurednotes.InJuly2019,theCompany,astheprosecutor,launchedalawsuittoShenzhenIntermediatePeople’sCourtinrespectofthematurednotesofRMB100,027,889.84,claimingthattheaccepterShanghaiHuaxinandtheremoteholder(YellowRiverInternationalTrade(Zhengzhou)Co.,Ltd.,DafenqiCommercialFactoring(Shenzhen)Co.,Ltd.)shouldburdenthejointliabilityforsettlementofthenotesandcorrespondingpenalinterests.Andnowthecasehasbeenofficiallyacceptedandregistered,inwhichthecourtisexecutingthepropertypreservation.AsoftheissuancedateofthisReport,thecasehasnotbeenheldacourthearing,andtheaforesaidtradeacceptancehasnotbeenhonored.
⑤TheCompanyheldthetradeacceptanceofChinaEnergyPowerFuelCo.,Ltd.,andtheaccepterfailedtoacceptthematurednotes.TheCompany,astheprosecutor,launchedalawsuittoShenzhenIntermediatePeople’sCourtinrespectofthematurednotesofRMB50,000,000.00,claimingthattheaccepterandtheremoteholdershouldburdenthejointliabilityforsettlementofthenotesandcorrespondingpenalinterests.AccordingtoNo.(2018)Y03MC3354CivilVerdictissuedbyShenzhenIntermediatePeople’sCourtonNovember1,2018,relevantpropertiesunderthenameofChinaEnergy(Shanghai)EnterpriseCo.,Ltd.,ChinaEnergyPowerFuelCo.,Ltd.,ShanghaiNengpingEnterpriseCo.,Ltd.,andShenzhenQianhaiBaoyingCommercialFactoringCo.,Ltd.wouldbesealedup,detainedandfrozen(RMB50,000,000.00atmost).OnJuly9,2019,theCompanyreceivedthejudgementofNo.
(2018)Y03MC3354CivilVerdictissuedbyShenzhenIntermediatePeople’sCourt,inwhichthedefendantshouldpaytheCompanythenotesofRMB50,000,000.00andcorrespondinginterest.AsoftheissuancedateofthisReport,theservicebypublicationisundergoingandtheaforesaidtradeacceptancehasnotbeenhonored.⑥TheCompany’ssubsidiaryKonkaFactoringheldthetradeacceptanceofTahoeGroupCo.,Ltd.,andtheaccepterfailedtoacceptthematurednotes.InJanuary2019,KonkaFactoring,astheprosecutor,launchedalawsuittoShenzhenIntermediatePeople’sCourtinrespectofthematurednotesofRMB50,000,000.00,claimingthattheaccepterandtheremoteholder(FuzhouTaijiaEnterpriseCo.,Ltd.,XiamenLinktronMicroelectronicsCo.,Ltd.)shouldburdenthejointliabilityforsettlementofthenotesandcorrespondingpenalinterest.Andnowthecasehasbeenofficiallyacceptedandregistered,inwhichthecourtisexecutingthepropertypreservation.AsoftheissuancedateofthisReport,thecasehasnotbeenheldacourthearing,andtheaforesaidtradeacceptancehasnotbeenhonored.
⑦TheCompany’ssubsidiaryXingDaHongyehadadisputeoverthecommissioncontractwithKunshanMingyuElectronicsCo.,Ltd.Duringthelawsuit,KunshanMingyuElectronicsCo.,Ltd.appliedforthepropertypreservation,andRMB2,320,000.00wasfrozenfromthebankaccountofXingDaHongYe.AccordingtoNo.(2018)S0583MC14368CivilVerdictissuedbyKunshanPeople’sCourtonJanuary21,2019afterthefirstinstance,therespondentXingDaHongYeshouldpaythecommissionRMB1,459,941.32andcorrespondingoverdueinterestwithin10daysaftertheverdictcameintoeffect,butXingDaHongYealsoinstitutedanappealtothecourtinFebruary2019.AsoftheissuancedateofthisReport,thecourthasnotissuedtheverdictforthetrialofsecondinstance.
⑧TheCompany’ssubsidiary,KonkaCommercialFactoring(Shenzhen)Co.,Ltd.heldthetradeacceptanceofZhongjiaoNo.1AviationBureauNo.1EngineeringCompany,andtheaccepterfailedtoacceptthematurednotes.InMay2019,KonkaCommercialFactoring(Shenzhen)Co.,Ltd.,astheprosecutor,launchedalawsuittoPeople’sCourtofNanshanDistrict,Shenzhen,,claimingthattheaccepterZhongjiaoNo.1AviationBureauNo.1EngineeringCompanyshouldpaythenotesofRMB36.2millionandcorrespondinginterest,andtheremoteholder(TianjinXingxiCommercialTradeCo.,Ltd.,ShenzhenGujinhongTradeCo.,Ltd.,ShanghaiTianweiInternationalTradeCo.,Ltd.andShanghaiRunlinInternationalTradeCo.,Ltd.)shouldburdenthejointliabilityforthedebtsofZhongjiaoNo.1AviationBureauNo.1EngineeringCompany.Andnowthecaseisunderthefirsttrial,inwhichhasappliedforexecutingthepropertypreservation,andisstillawaitingtrial.
⑨TheCompany’ssubsidiary,KonkaCommercialFactoring(Shenzhen)Co.,Ltd.heldthetradeacceptanceofZhongjiaoNo.1AviationBureauNo.1EngineeringCompany,andtheaccepterfailedtoacceptthematurednotes.InJune2019,KonkaCommercialFactoring(Shenzhen)Co.,Ltd.,astheprosecutor,launchedalawsuittotheFirstPeople’sCourtofDongguan,,claimingthattheaccepterZhongjiaoNo.1AviationBureauNo.1EngineeringCompanyshouldpaythenotesofRMB10millionandcorrespondinginterest,andtheremoteholder(TianjinXingxiCommercialTradeCo.,Ltd.,ShenzhenGujinhongTradeCo.,Ltd.,ShanghaiTianweiInternationalTradeCo.,Ltd.andShanghaiRunlinInternationalTradeCo.,Ltd.)shouldburdenthejointliabilityforthedebtsofZhongjiaoNo.1AviationBureauNo.1EngineeringCompany.Andnowthecaseisunderthefirsttrial,inwhichhasappliedforexecutingthepropertypreservation,andisstillawaitingtrial.
⑩TheCompanyheldthetradeacceptanceofChinaNuclearEngineeringConstructionGroupCo.,Ltd.,andtheaccepterfailedtoacceptthematurednotes.InMarch2019,theCompany,astheprosecutor,launchedalawsuittoShenzhenIntermediatePeople’sCourtinrespectofthematurednotesofRMB80,000,000.00,,claimingthattheremoteholderHefeiHuajunCommercialTradeCo.,Ltd.,WuhanJialianAgriculturalTechnologyDevelopmentCo.,Ltd.shouldpaythenotesofRMB80,000,000.00andcorrespondinginterest.Andnowthecasehasbeenofficiallyacceptedandregistered,inwhichthecourtisexecutingthepropertypreservation,andisawaitingtrial.
?H-BUSTERSAOPAULOINDUSTRIAECOMERCIOS.A(hereinafterreferredtoas“H-BUSTER”)(Brazil),acustomeroftheCompany’ssubsidiaryHongKongKonkaLimited,becameinsolventandobtainedinMay2013theapprovalfromtheThirdCivilCourtofCotiaCityoftheCourtoftheStateofSaoPaulo,Brazilforitsjudicialreorganizationapplication.AsacreditorofH-BUSTER,HongKongKonkasubmitteditscreditor’srightsdeclarationpaper,andtheamountowedbyH-BUSTERtoHongKongKonkawasrecognizedinAugust2014atapproximatelyUS$2.78million.However,theaforesaidreorganizationplanofH-BUSTERwasvetoedatacreditors’meeting.Currently,thebankruptcyandreorganizationcaseofH-BUSTERisstillpending.
?InOctober2015,ViaLicensingCorporationandtheCompany’ssubsidiaryHongKongKonkaLimited(hereinafterreferredtoas“HongKongKonkaLimited”)enteredintotheAdvancedAudioCoding(AAC)PatentLicensingAgreement,inwhichViaLicensingCorporationallowsHongKongKonkaanditsrelatedenterprisestousethepatentedAACtechnologyintheproductionandsaleoftheirproductsandthelicensingfeeshallbebasedonthesalesvolumesoftheproductsusingthepatentedtechnology.InApril2018,Via
LicensingCorporationinitiatedanarbitrationattheHongKongInternationalArbitrationCentreagainstHongKongKonkaandtheCompanyfornotpayingthelicensingfeeinfull,claimingthatHongKongKonkaandtheCompanyshallpayalicensingfeeofapproximatelyUS$18.69million.Later,ViaLicensingCorporationappliedtoincreasetheamounttoUS$40.3875million.UptotheissuedateofthisReport,thiscaseisstillawaitingtrial.
?InMarch2018,WumartStores,Inc.filedalawsuittotheCourtofShijingshanDistrict,BeijingagainsttheBeijingbranchoftheCompanyoverapurchaseandsalescontract,askingforthereturnofaprepaymentofRMB10.7367million.Currently,thiscaseisinthefirsttrialwithnodecisionreachedyet.
?TheCompanyheldthetradeacceptanceofHISAPHigh-technologyCo.Ltd.andtheaccepterfailedtoacceptthematurednotes.InJuly2019,theCompany,astheprosecutor,launchedalawsuittoShenzhenIntermediatePeople’sCourtinrespectofthematurednotesofRMB200,000,000.00,,claimingthattheremoteholderNanjingJiongjiongElectronicTechnologyCo.,Ltd.,ShenzhenQianhaiBenniuAgriculturalTechnologyCo.,Ltd.shouldpaythenotesofRMB200,000,000.00andcorrespondinginterest.Andnowthecaseisunderthefirstinstanceandisawaitingtrial.
(2)ContingentLiabilitiesGeneratedfromProvidingDebtGuaranteesforOtherEntitiesandFinancialInfluencethereofTheCompanysignedthemaximumamountguaranteecontract(No.18czA0012-a-XCYZGBZD2018)withChuzhouBranchofChinaCiticBankonNovember7,2018,inwhichtheCompanyprovidedthemaximumcreditguaranteeofRMB58milliontoAnhuiKonkaTongchuangInternationalTradeCo.,Ltd.withinthreeyearsfromthedaywhentheobligationfulfillmentperiodstipulatedinthespecificbusinesscontractexpired,andtheguaranteemodewasthejointliabilityguaranty.ThecreditlineismainlyusedtoopenandaccepttheletterofcreditofAnhuiTongchuangInternationalTradeCo.,Ltd.andobtainthefinancingcreditandotherdailybusinessesfromthebank.TheguaranteeamounthasbeenusedRMB13,980,000.00by30June2019.TheCompanysignedtheguaranteecontractofmaximumamount(No.CZZHZGBZ2018No.0103)withChengzhongBranchofChuzhouEasternAnhuiRuralCommercialBankonMay9,2018,inwhichtheCompanyprovidedcreditguaranteeofRMB45,000,000.00toAnhuiTongchuan.Theguaranteeperiodistwoyearsfromtheexpirationofthedebtperformanceperiodagreedintherelevantcreditlineagreements,andtheguaranteemodewasthejointliabilityguaranty.ThecreditlineismainlyusedtoopenandaccepttheletterofcreditofAnhuiTongchuangInternationalTradeCo.,Ltd.andobtainthefinancingcreditand
otherdailybusinessesfromthebank.TheguaranteeamounthasbeenusedRMB35,735,300.00byJune30,2019.TheCompanysignedthemaximumamountguaranteecontract(No.CZGSBOZGBT20180011)withChuzhouBranchofChinaEverbrightBankonJune19,2018,inwhichtheCompanyprovidedthemaximumcreditguaranteeofRMB30milliontoAnhuiKonkaTongchuangInternationalTradeCo.,Ltd.Theguaranteeperiodistwoyearsfromtheexpirationofthedebtperformanceperiodagreedintherelevantcreditlineagreements,andtheguaranteemodewasthejointliabilityguaranty.ThecreditlineismainlyusedtoopenandaccepttheletterofcreditofAnhuiTongchuangInternationalTradeCo.,Ltd.andobtainthefinancingcreditandotherdailybusinessesfromthebank.TheguaranteeamounthasbeenusedRMB28,690,000.00byJune30,2019.TheCompanysignedthemaximumamountguaranteecontract(No.00035ZSYGBZD2018)(361006)withHefeiBranchofChinaZheshangBankonSeptember20,2018,inwhichtheCompanyprovidedthemaximumcreditguaranteeofRMB55milliontoAnhuiKonkaTongchuangInternationalTradeCo.,Ltd.withintwoyearsfromthedaywhenthedebtor’sobligationfulfillmentperiodstipulatedinthedebtcontractsignedbetweenAnhuiTongchuangandHefeiBranchofChinaZheshangBankexpired,andtheguaranteemodewasthejointliabilityguaranty.ThecreditlineismainlyusedtoopenandaccepttheletterofcreditofAnhuiTongchuangInternationalTradeCo.,Ltd.andobtainthefinancingcreditandotherdailybusinessesfromthebank.TheguaranteeamounthasbeenusedRMB50,000,000.00byJune30,2019.TheCompanysignedtheguaranteecontractofmaximumamount(No.Jingtian18006)withShenzhenBranchofChinaMinshengBankCo.,Ltd.onJanuary10,2019,inwhichtheCompanyprovidedthemaximumcreditguaranteeofRMB30milliontoAnhuiKonkaTongchuangInternationalTradeCo.,Ltd.withintwoyearsfromthedaywhenthedebtor’sobligationfulfillmentperiodstipulatedinthedebtcontractsignedbetweenAnhuiTongchuangandShenzhenBranchofChinaMinshengBankexpired,andtheguaranteemodewasthejointliabilityguaranty.ThecreditlineismainlyusedtoopenandaccepttheletterofcreditofAnhuiTongchuangInternationalTradeCo.,Ltd.andobtainthefinancingcreditandotherdailybusinessesfromthebank.TheguaranteeamounthasbeenusedRMB10,575,000.00byJune30,2019.TheCompanysignedthemaximumamountguaranteecontract(No.180302)(240A1)withChuzhouBranchofIndustrialBankonJanuary11,2019,inwhichtheCompanyprovidedthemaximumcreditguaranteeofRMB100milliontoAnhuiKonkaTongchuangInternational
TradeCo.,Ltd.withintwoyearsfromthedaywhenthedebtor’sobligationfulfillmentperiodstipulatedinthedebtcontractsignedbetweenAnhuiTongchuangandChuzhouBranchofIndustrialBankexpired,andtheguaranteemodewasthejointliabilityguaranty.ThecreditlineismainlyusedtoopenandaccepttheletterofcreditofAnhuiTongchuangInternationalTradeCo.,Ltd.andobtainthefinancingcreditandotherdailybusinessesfromthebank.TheguaranteeamounthasbeenusedRMB39,010,000.00byJune30,2019.TheCompanysignedtheguaranteecontractofmaximumamount(No.340101001120190300005)withHuangshanRoadBranchofHefeiScience&TechnologyRuralCommercialBankonJanuary23,2019,inwhichtheCompanyprovidedthemaximumcreditguaranteeofRMB50,000,000.00toAnhuiKonkaTongchuangInternationalTradeCo.,Ltd.withintwoyearsfromthedaywhenthedebtor’sobligationfulfillmentperiodstipulatedinthedebtcontractsignedbetweenAnhuiTongchuangandHuangshanRoadBranchofHefeiScience&TechnologyRuralCommercialBankexpired,andtheguaranteemodewasthejointliabilityguaranty.ThecreditlineismainlyusedtoopenandaccepttheletterofcreditofAnhuiTongchuangInternationalTradeCo.,Ltd.andobtainthefinancingcreditandotherdailybusinessesfromthebank.TheguaranteeamounthasbeenusedRMB20,185,000.00byJune30,2019.TheCompanysignedtheguaranteecontractofmaximumamount(No.LPLZHGBZ2019No.24105029)withChuzhouLongpanluBranchofHuishangBankCo.,Ltd.on24June2019,inwhichtheCompanyprovidedcreditguaranteeofRMB30,000,000.00toAnhuiTongchuang.Theguaranteeperiodistwoyearsfromtheexpirationofthedebtperformanceperiodagreedintherelevantcreditlineagreements,andtheguaranteemodewasthejointliabilityguaranty.TheguaranteeamounthasbeenusedRMB0byJune30,2019.TheCompanysignedComprehensiveCreditLineContract(No.HXSFZLZZD20180921001)andappliedtoShenzhenBranchofGuangdongHuaxingBankforcomprehensivecreditlineofRMB1,000,000,000.00.TheguaranteeperiodisfromSeptember29,2018toAugust29,2019.TheCompanyhassub-licensedthecomprehensivecreditlineRMB200,000,000.00thesubsidiaryKonkaFactoring(Shenzhen),andwillassumethejointliabilityforguarantee.AsofJune30,2019,KonkaFactoringusedRMB0.OnMarch13,2019,theCompanyappliedtoShenzhenBranchofChinaMinshengBankCo.,Ltd.foraletterofguaranteeofUSD23,000,000.00,helpingthesubsidiaryHongKongKonkaCo.,Ltd.toobtainthefinancingloanfromthebank.TheguaranteeperiodisfromMarch13,2019toMarch13,2020.AsofJune30,2019,HongKongKonkaobtainedaloanofUSD23,000,000fromBankofChina(HongKong)Co.,Ltd.
OnJuly11,2018,theCompanyappliedtoShenzhenBranchofHSBCBank(China)Co.,Ltd.foraletterofguaranteeofUSD15,000,000.00,helpingthesubsidiaryHongKongKonkaCo.,Ltd.toobtainthefinancingloanfromthebank.TheguaranteeperiodisfromAugust7,2018toAugust6,2019.AsofDecember31,2018,HongKongKonkaobtainedaloanofUSD15,000,000fromHSBCLimited.TheCompanysignedthemaximumamountguaranteecontract(No.GGBZDDB1800000101834)withMa’anshanBranchofChinaMinshengBank,providingthejointandseveralliabilityguaranteeforthedebtsunderthecomprehensivecreditlineagreementsignedbyAnhuiKonkaandMa’anshanBranchofChinaMinshengBank.TheguaranteeamountisRMB100,000,000.00,andtheguaranteeperiodistwoyearsfromtheexpirationofthedebtsettlementperiodunderthemaincontract.AsofJune30,2019,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.AsofJune30,2019,theguaranteeamountRMB50,000,000.00wasused.KonkaIntelligentTerminal’anothershareholder,ShenzhenKangweiInvestmentPartnership(LimitedPartnership)providedthecounter-guaranteetoTelecommunicationTechnologyfor49%oftheguaranteeamount.TheCompanysignedtheguaranteecontractofmaximumamount(No.YBXGZGB2019No.002)withYibinRuralCommercialBankCo.,Ltd.on18March2019,inwhichtheCompanyprovidedcreditguaranteeofRMB40,000,000.00toSichuanKonka.TheguaranteeperiodistwoyearsfromtheexpirationofthedebtsettlementperiodundertheLiquidityRevolvingLoanContract,andtheguaranteemodewasthejointliabilityguaranty.AsofJune30,2019,theguaranteeamountRMB40,000,000.00wasused.SichuanKonka’anothershareholder,ShenzhenKangweiInvestmentPartnership(LimitedPartnership)providedthecounter-guaranteetoTelecommunicationTechnologyfor49%oftheguaranteeamount.
OnNovember21,2018,theCompanysignedtheguaranteecontract(No.1510201811120052BZ-1)withZhuhaiBranchofXiamenInternationalBank,providingthejointandseveralliabilityguaranteeforthedebtsunderthecomprehensivecreditlinecontractsignedbythesubsidiaryXingyeHongdaandZhuhaiBranchofXiamenInternationalBank.TheguaranteeamountisRMB58,000,000.00,andtheguaranteeperiodistwoyearsfromtheexpirationofthedebtsettlementperiodstipulatedinthecontract.AsofJune30,2019,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.AsofJune30,2019,theguaranteeamountRMB9,500,000.00wasused.XingyeHongda’anothershareholder,HuZehongprovidedthecounter-guaranteetotheCompanyfor49%oftheguaranteeamount.TheCompanysignedtheguaranteecontractofmaximumamount(No.BZFEB[2019]010-002)withChinaBohaiBankCo.,Ltd.onApril19,2019,inwhichtheCompanyprovidedthemaximumcreditguaranteeofRMB38,975,202.80toXingDaHongYewithintwoyearsfromthedaywhenthedebtor’sobligationfulfillmentperiodstipulatedinthedebtcontract,andtheguaranteemodewasthejointliabilityguaranty.Thecreditlineismainlyusedtosupporttheproductionandoperationcirculation.AsofJune30,2019,XingDaHongYeusedtheguaranteeamountRMB38,975,202.8.XingDaHongYe’anothershareholder,HuZehongprovidedthecounter-guaranteetotheCompanyfor49%oftheguaranteeamount.TheCompanysignedtheguaranteecontractofmaximumamount(No.XYYSBZ[Zhongshan]201905158001)withZhongshanBranchofIndustrialBankCo.,Ltd.onMay20,2019,inwhichtheCompanyprovidedthemaximumcreditguaranteeofRMB10,000,000.00toXingDaHongYewithintwoyearsfromthedaywhenthedebtor’sobligationfulfillmentperiodstipulatedintheComprehensiveCreditLineAgreement,andtheguaranteemodewasthejointliabilityguaranty.AsofJune30,2019,XingDaHongYeusedtheguaranteeamountRMB10,000,000.00.XingDaHongYe’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.OnApril23,2019,TheCompanysignedtheguaranteecontractofmaximumamount(No.YKB2019-032)withYantaiBranchofChinaEverbrightBank,inwhichtheCompanyprovidedthemaximumcreditguaranteeofRMB20,000,000.00toEconTechnologywithintwoyearsfromthedaywhenthedebtor’sobligationfulfillmentperiodstipulatedintheComprehensiveCreditLineAgreement,andtheguaranteemodewasthejointliabilityguaranty.AsofJune30,2019,EconTechnologyusedtheguaranteeamountRMB10,000,000.00.OthershareholdersofEconTechnologyincludingYantaiBaijiangyuanEnterpriseManagementCenter(LimitedPartnership),YantaiFengqingtaiInvestmentCenter(LimitedPartnership),YantaiQingrunyuanEnterpriseManagementCenter(LimitedPartnership)andYantaiQingjiangchuanEnterpriseManagementCenter(LimitedPartnership)respectivelyprovidedthecounter-guaranteetotheCompanyfor26.04%,11.58%,10.64%and0.74%ofthemaximumdebtamount.OnMay13,2019,theCompanysignedthemaximumamountguaranteecontract(No.2019220011FSZGBZ2005)withYantaiBranchofQiluBank,inwhichtheCompanyprovidedthemaximumcreditguaranteeofRMB50,000,000.00toEconTechnologywithintwoyearsfromthedaywhenthedebtor’sobligationfulfillmentperiodstipulatedintheQiluBank’sComprehensiveCreditLineContract,andtheguaranteemodewasthejointliabilityguaranty.AsofJune30,2019,EconTechnologyusedtheguaranteeamountRMB50,000,000.00.OthershareholdersofEconTechnologyincludingYantaiBaijiangyuanEnterpriseManagementCenter(LimitedPartnership),YantaiFengqingtaiInvestmentCenter(LimitedPartnership),YantaiQingrunyuanEnterpriseManagementCenter(LimitedPartnership)andYantaiQingjiangchuanEnterpriseManagementCenter(LimitedPartnership)respectivelyprovidedthecounter-guaranteetotheCompanyfor26.04%,11.58%,10.64%and0.74%ofthemaximumdebtamount.
OnDecember4,2018,theCompanysignedthemaximumamountguaranteecontract(No.XYGXGBZ20180208)withNanchangBranchofIndustrialBank,inwhichtheCompanyprovidedthemaximumcreditguaranteeofRMB100,000,000.00toJiangxiKonkawithintwoyearsfromthedaywhenthedebtor’sobligationfulfillmentperiodstipulatedinthemaincreditlinecontract,andtheguaranteemodewasthejointliabilityguaranty.AsofJune30,2019,JiangxiKonkausedtheguaranteeamountRMB100,000,000.00.JiangxiKonka’anothershareholder,ZhuXinmingprovidedthecounter-guaranteetotheCompanyfor49%oftheguaranteeamount.OnJanuary17,2019,theCompanysignedthemaximumamountguaranteecontract(No.0516204_001)withNanchangHonggutanDistrictBranchofBankofBeijing,inwhichtheCompanyprovidedthemaximumcreditguaranteeofRMB100,000,000.00toJiangxiKonkawithintwoyearsfromthedaywhenthedebtor’sobligationfulfillmentperiodstipulatedinthemaincreditlinecontract,andtheguaranteemodewasthejointliabilityguaranty.AsofJune30,2019,JiangxiKonkausedtheguaranteeamountRMB100,000,000.00.JiangxiKonka’anothershareholder,ZhuXinmingprovidedthecounter-guaranteetotheCompanyfor49%oftheguaranteeamount.OnMarch13,2019,theCompanysignedtheguaranteecontract(No.GCL19C0057)withHaitongUniTrustInternationalLeasingCo.,Ltd.,inwhichtheCompanyprovidedthejointliabilityguaranteeforthedebtsundertheFinancingLeasing-backContractandallrelatedattachmentssignedbetweenHaitongUniTrustandtheCompany’ssubsidiaryJiangxiKonka,andtheguaranteedamountwasRMB119,605,820.00withintwoyearsfromthedaywhenthedebtor’sobligationfulfillmentperiodstipulatedinthemaincreditlinecontract.AsofJune30,2019,theguaranteeamountRMB109,000,000.00wasused.JiangxiKonka’anothershareholder,ZhuXinmingprovidedthecounter-guaranteetotheCompanyfor49%oftheguaranteeamount.OnFebruary28,2019,theCompanysignedthemaximumamountguaranteecontract(No.(2019)XHYZBZ010013)withNanchangBranchofChinaCITICBank,inwhichtheCompanyprovidedthemaximumcreditguaranteeofRMB100,000,000.00tothesubsidiaryJiangxiKonkaNewMaterialTechnologyCo.,Ltd.withinthreeyearsfromthedaywhenthedebtor’sobligationfulfillmentperiodstipulatedinthemaincreditlinecontract,andtheguaranteemodewasthejointliabilityguaranty.AsofJune30,2019,JiangxiKonkausedtheguaranteeamountRMB100,000,000.00.JiangxiKonka’anothershareholder,ZhuXinmingprovidedthecounter-guaranteetotheCompanyfor49%oftheguaranteeamount.OnJune27,2019,theCompanysignedthemaximumamountguaranteecontract(No.
36100520190009207)withYongxiuCountyBranchofAgriculturalBankofChina,inwhichtheCompanyprovidedthemaximumcreditguaranteeofRMB60,000,000.00tothesubsidiaryJiangxiKonkaNewMaterialTechnologyCo.,Ltd.withintwoyearsfromthedaywhenthedebtor’sobligationfulfillmentperiodstipulatedinthemaincreditlinecontract,andtheguaranteemodewasthejointliabilityguaranty.AsofJune30,2019,theguaranteeamountRMB25,000,000.00wasused.JiangxiKonka’anothershareholder,ZhuXinmingprovidedthecounter-guaranteetotheCompanyfor49%oftheguaranteeamount.OnJune19,2019,theCompanysignedthemaximumamountguaranteecontract(No.36100520190008787)withAnyiCountyBranchofAgriculturalBankofChina,inwhichtheCompanyprovidedthemaximumcreditguaranteeofRMB72,000,000.00tothesubsidiaryJiangxiKonka’ssubsidiaryXinfengMicrocrystallinewithintwoyearsfromthedaywhenthedebtor’sobligationfulfillmentperiodstipulatedintheXinfengMicrocrystalline’screditlinecontract,andtheguaranteemodewasthejointliabilityguaranty.AsofJune30,2019,theguaranteeamountRMB35,500,000.00wasused.JiangxiKonka’anothershareholder,ZhuXinmingprovidedthecounter-guaranteetotheCompanyfor49%oftheguaranteeamount.OnJune26,2019,theCompanysignedthemaximumamountguaranteecontract(No.GZ2019BZ025/031)withGuangxiFinanceLeaseCo.,Ltd.,inwhichtheCompanyprovidedthejointliabilityguaranteeforpayingrentsandotherpaymentsundertheFinanceLeaseContractsignedbetweenJiangxiKonka’ssubsidiaryNanoCrystallizedGlassandGuangxiFinanceLeaseCo.,Ltd.,andtheguaranteedamountwasRMB100,000,000.00(fromJune26,2019toJune25,2022)withintwoyearsfromthedaywhenthelastrentpaymentobligationwasfulfilledasstipulatedinthemaincreditlinecontract.AsofJune30,2019,theguaranteeamountRMB0.00wasused.JiangxiKonka’anothershareholder,ZhuXinmingprovidedthecounter-guaranteetotheCompanyfor49%oftheguaranteeamount.OnFebruary2,2019,theCompanysignedtheguaranteecontract(No.GDBZKJ005)withMa’anshanBranchofChinaMinshengBank,inwhichtheCompanyprovidedthejointliabilityguaranteeforthedebtsundertheM&ALoanContractsignedbetweentheCompany’ssubsidiaryElectricalApplianceTechnologyandMa’anshanBranchofChinaMinshengBank,andtheguaranteedamountwasRMB130,000,000.00withintwoyearsfromthedaywhenthedebtor’sobligationfulfillmentperiodstipulatedintheM&ALoanContract,andthefulfillmentperiodofthedebtunderthemaincontractwas5years.AsofJune30,2019,theguaranteeamountRMB130,000,000.00wasused.ElectricalApplianceTechnology’anothershareholder,ChuzhouHanshangElectricalApplianceCo.,Ltd.providedthecounter-guaranteetotheCompanyfor49%oftheguaranteeamount.
OnFebruary20,2019,theCompanysignedthemaximumamountguaranteecontract(No.GYHBZ[2019]0001)withHuizhouBranchofBankofGuangzhou,inwhichtheCompanyprovidedthemaximumcreditguaranteeofRMB40,000,000.00tothesubsidiaryBoluoKonkaPrecisionfromFebruary20,2019toFebruary20,2021,andtheguaranteemodewasthejointliabilityguaranty.AsofJune30,2019,theguaranteeamountRMB17,791,100.00wasused.TheCompanysignedthecreditlineagreement(No.2019ZZYFEXZ1000056)withShenzhenFutianBranchofBankofChinatoapplythecomprehensivecreditlineofRMB4,000,000,000.00fromApril18,2019toApril18,2020.TheCompanytransferredthecreditlineofRMB580,000,000.00toitssubsidiaryElectronicsTechnologyandwouldburdenthejointliabilityforsuchtransferredcreditline.AsofJune30,2019,ElectronicsTechnologyusedthecreditlineofRMB39,347,378.19.TheCompanysignedthemaximumamountguaranteecontract(No.5970120190527732001-01)withGuangdongPilotFreeTradeZoneNanshaBranchofBankofJiujiang,inwhichtheCompanyprovidedthemaximumcreditguaranteeofRMB50,000,000.00totheCompany’ssubsidiaryKonkaPengrunwithintwoyearsfromthedaywhenthedebtor’sobligationfulfillmentperiodstipulatedinthecomprehensivecreditlinecontract,andtheguaranteemodewasthejointliabilityguaranty.AsofJune30,2019,theguaranteeamountRMB0.00wasused.KonkaPengrun’anothershareholder,GuizhouHuajinrunTechnologyGroupprovidedthecounter-guaranteetotheCompanyfor49%oftheguaranteeamount.OnDecember27,2016,theCompany’ssubsidiaryEconTechnologysignedtheguaranteecontract(No.YKB2016-167)withYantaiBranchofChinaEverbrightBank,inwhichtheCompanyprovidedtheguaranteeforRushanYike,andtheguaranteedamountwasRMB290millionfromDecember29,2016toDecember28,2026.AsofJune30,2019,thecreditlineRMB147,400,000.00wasused.OnJune20,2019,theCompanysignedthemaximumamountguaranteecontract(No.2019SYQHZBZ0005)withShenzhenBranchofChinaCITICBank,inwhichtheCompanyprovidedthemaximumcreditguaranteeofRMB50,000,000.00tothesubsidiaryElectronicsTechnologywithinthreeyearsfromthedaywhenthedebtor’sobligationfulfillmentperiodstipulatedintheFinancingContract,andtheguaranteemodewasthejointliabilityguaranty.AsofJune30,2019,theguaranteeamountRMB3,163,912.76wasused.OnDecember19,2016,theCompany’ssubsidiaryJiangxiKonkasignedtheentrustedloanguaranteecontract(No.NNYWBZDB106112016121900042016)withtheSalesDepartment
ofNanchangRuralCommercialBanktoprovidetheguaranteeforthedebtofguaranteecontract(No.NNYWBZDB1061120161219200200042016)signedbyJiangxiXinxinJian’anEngineeringCo.,Ltd.andtheSalesDepartmentofNanchangRuralCommercialBank.TheamountoftheFinancingContractisRMB100,000,000.00.TheguaranteeperiodistwoyearsfromtheexpirationofthedebtsettlementperiodstipulatedintheFinancingContract,andtheguaranteemodewasthejointliabilityguaranty.AsofJune30,2019,theguaranteeamountwasusedRMB100,000,000.00.OnDecember19,2016,theCompany’ssubsidiaryJiangxiKonkasignedtheentrustedloanguaranteecontract(No.NNYWBZDB1061120161219000332016)withtheSalesDepartmentofNanchangRuralCommercialBanktoprovidetheguaranteeforthedebtofguaranteecontract(No.NNYWBZDB1061120161216200200022016)signedbyJiangxiZhongyiDecorativeMaterialCo.,Ltd.andtheSalesDepartmentofNanchangRuralCommercialBank.TheamountoftheFinancingContractisRMB100,000,000.00.TheguaranteeperiodistwoyearsfromtheexpirationofthedebtsettlementperiodstipulatedintheFinancingContract,andtheguaranteemodewasthejointliabilityguaranty.AsofJune30,2019,theguaranteeamountwasusedRMB100,000,000.00.OnDecember16,2016,theCompany’ssubsidiaryJiangxiKonkasignedtheentrustedloanguaranteecontract(No.NNYWBZDB106112016121600022016)withtheSalesDepartmentofNanchangRuralCommercialBanktoprovidetheguaranteeforthedebtofguaranteecontract(No.NNYWBZDB1061120161219200200032016)signedbyJiangxiShanshiScienceandTechnologyCo.,Ltd.andtheSalesDepartmentofNanchangRuralCommercialBank.TheamountoftheFinancingContractisRMB100,000,000.00.TheguaranteeperiodistwoyearsfromtheexpirationofthedebtsettlementperiodstipulatedintheFinancingContract,andtheguaranteemodewasthejointliabilityguaranty.AsofJune30,2019,theguaranteeamountwasusedRMB100,000,000.00.XIII.EventsafterBalanceSheetDate
1.SignificantNon-adjustedEvents
Item
| Item | Content | Influencenumbertothefinancialpositionandoperatingresults | Reasonofinabilitytoestimateinfluencenumber |
Issuanceofstocksand
bonds
| Issuanceofstocksandbonds | CompletetheprivateplacementofcorporatebondsofRMB1.5billionon23July2019 | IncreaseinbondspayableofRMB1.5billion | N/A |
XVI.OtherSignificantEvents
1.TheCompanysignedGuaranteeContractwithChuzhouBranchofBankofChinaCo.,Ltd.Accordingtothecontract,theCompanyprovidesthejointliabilityguaranteeforthecreditor’srightsarisingunderthecreditcontractsignedbyChuzhouBranchofBankofChinaCo.,Ltd.andandtheCompany’sholdingsubsidiaryAnhuiKonka.TheguaranteeamountisRMB268million,andtheguaranteeperiodistwoyearsfromtheexpirationofthedebtperformanceperiodagreedinthemaincontract.
2.OnJuly18,2019,theCompanysignedIssuingGuaranteeAgreementwithNingboBankCo.,Ltd.toprovidetheguaranteeforHongKongKonkatoapplyforthefinancingloanfromPingAnBankCo.,Ltd.byoverseasloanunderdomesticguarantee,providingthejointliabilityguaranty,andtheamountguaranteedisUSD13.5millionwithone-yearguaranteeperiod.
3.OnJuly5,2019,theCompanysubmittedtheIrrevocableDocumentaryCreditApplicationforIssuance/Amendation/CancellationtoShenzhenBranchofHSBCBank(China)Co.,Ltd.,andappliedtopostponetheletterofguaranteeofUSD15,000,000.00onJuly11,2018foroneyear,namelytheCompanycontinuedtoprovidetheguaranteeforapplyingforthefinancingloanofHongKongKonkatoHSBCBank(China)Co.,Ltd.byoverseasloanunderdomesticguarantee.TheguaranteeamountisUSD15,000,000.00.
4.TheCompanyandtheChengzhongsub-branchofChuzhouWandongRuralCommercialBankCo.,Ltd.enteredintoaGuaranteeContract.Accordingtothecontract,theCompanywouldprovidejoint-liabilityguaranteeforloansgrantedtotheCompany’smajority-ownedsubsidiaryAnhuiKonkaTongchuangElectricalAppliancesCo.,Ltd.underthecomprehensivecreditlinecontractenteredintobetweenthesubsidiaryandthefinancialinstitution.TheguaranteeamountwouldbeRMB45millionwithatermofthreeyearsstartingfromtheexpiryoftheloanrepaymentperiodasstatedinthecomprehensivecreditlinecontract.
5.Loanbymandate:
(1)TheCompany,togetherwithShenzhenOverseasChineseTownCo.,Ltd.andChinaCITICBankCo.,Ltd.ShenzhenBranch,hasconcludedtheSub-agreementforElectronic
LoanbyMandateonCashManagementbyCITICBank,numbered811038022341.TheamountofloanbymandateundertheAgreementisRMB2,000,000,000.00,withatermfromthedateofentryintoforceoftheAgreementtoApril12,2023.Theannualinterestrateoftheloanis4%to10%,subjecttotheconfirmationoftheborrowerandtheprincipalintheelectronicloanbymandateoncashmanagement.Subsequently,thethreepartiessignedaSupplementaryAgreementtotheSub-agreementforElectronicLoanbyMandateonCashManagementbyCITICBank,numbered811038022341-1,inwhichtheamountofloanbymandatewaschangedtoRMB3,000,000,000.00.AsofJune30,2019,ShenzhenOverseasChineseTownCo.,Ltd.actuallyprovidedtheCompanywithaloanbalancebymandateofRMB3,000,000,000.00throughShenzhenBranchofChinaCITICBank.
(2)OnSeptember14,2017,theCompanyandOCTGroupCo.,Ltd.andShenzhenOCTBranchofChinaConstructionBankjointlysignedEntrustedLoanContract(No.JSWD2017141).ThetotalentrustedloanamountisRMB5,000,000,000.00,andtheloantermisfromSeptember14,2017toDecember31,2018.ThethreepartiessignedtheentrustedloanextensioncontractonDecember14,2018andDecember19,2018,andthetotalamountsubjecttosuchextensionisRMB1,276,560,000.00.LaterthethreepartiessignedtheentrustedloanextensioncontractonApril18,2019,andthetotalamountsubjecttosuchextensionisRMB278,075,600.00.AsofJune30,2019,thebalanceoftheentrustedloanprovidedbyOCTGroupCo.,Ltd.totheCompanyviaOCTBranchofChinaConstructionBankwasRMB884,635,570.00.
(3)TheOCTGroupCo.,Ltd.issuedtheentrustedloantotheCompanywiththeamountofRMB221,924,430.00,andtheloantermisfromApril16,2019toApril15,2020.
6.CreditGranting:
(1)TheCompany,ShenzhenFutianBranchofBankofChinaandShenzhenKonkaElectronicsTechnologyCo.,Ltd.jointlysignedthecreditlineagreement(No.ZZYFEXZD10000562019),applyingforacreditlineofRMB4,000,000,000.00forissuingtheacceptancebills,thenon-financingguaranteeandthetradefinancing.TheCompanyprovidedRMB1billionbankacceptancebillsforpledge,andagreedtoprovidetheamountofRMB580,000,000.00inthecomprehensivecreditlinetothesubsidiaryElectronicsTechnologyforuse.TheCompanywouldbejointlyandseverallyliableforthecomprehensivecredit.ThecreditlineshallbevalidfromthedateoftheabovecreditlineagreementtoApril18,2020.AsofJune30,2019,atotalofRMB1,777,958,859.04wasusedfromtheabovecreditline,andtheremainingcreditlineisRMB2,222,041,140.96.
(2)TheCompanysignedthecreditlineextensioncontractwithShenzhenOCTBranchof
IndustrialandCommercialBankofChinatoapplyforthemaximumcreditlineofRMB1.9billionandextendthecreditlineperiodtoSeptember30,2019.AsofJune30,2019,atotalofRMB1692.3334millionwasusedfromtheabovecreditline,andtheremainingcreditlineisRMB207.6666million.
(3)Thecomprehensivecreditlinecontract(No.PYSZZZDA596201711270001)signedonJanuary2,2018withShenzhenBranchofPingAnBankwasexpiredonJanuary1,2019.AsofJune30,2019,theCompanyhasnotextendedthecontractwithShenzhenBranchofPingAnBank.
(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.AnhuiKonkaElectronicCo.,Ltd.couldusetheabovecreditlineRMB100million.AsofJune30,2019,atotalofRMB425.3328millionwasusedfromtheabovecreditline,andtheremainingcreditlineisRMB74.6672million.
(5)TheCompanysignedthecomprehensivecreditlinecontractwithShenzhenBranchofBankofCommunications,applyingforthecreditlineofRMB500,000,000.00fortheRMBworkingfundloan,theopeningofdomesticlettersofcredit,theletterofguarantee,businesslimitofderivativeproducts,theopeningoftheimportlettersofcredit,andtheimportdocumentarybills,thefinancingofimportoutwardremittance.ThecreditlineisvalidfromJune14,2019toJubne12,2019.AsofJune30,2019,atotalofRMB250,000,000.00wasusedfromtheabovecreditline,andtheremainingcreditlineisRMB250,000,000.00.
(6)TheCompanysignedthecomprehensivecreditlinecontract(No.SYQHZZD00062018)withShenzhenBranchofChinaCiticBank,applyingforthecomprehensivecreditlineofRMB400,000,000.00.ThecreditlineperiodisfromOctober12,2018toJuly27,2019.Asof
June30,2019,atotalofRMB400,000,000.00wasusedfromtheabovecreditline.
(7)OnNovember15,2018,theCompanysignedthecomprehensivecreditlinecontract(No.ZSYZSZD00009(584600)2018)withShenzhenBranchofChinaZheshangBank,applyingforthemaximumcreditlineofRMB1,000,000,000.00.ThecreditlineperiodisfromNovember15,2018toAugust14,2019.AsofJune30,2019,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).AsofJune30,2019,atotalofRMB798.4millionwasusedfromtheabovecreditline,andtheremainingcreditlineisRMB201.6million.
(9)OnMay10,2018,theCompanysignedthecomprehensivecreditlinecontract(No.BSFZ(2018)9)andthesupplementaryagreementwithShenzhenBranchofChinaBohaiBank,applyingforthetotalcreditlineofRMB500,000,000.00.Thecreditlinetermisoneyear,andthecreditlineisusedfortheworkingcapitalloan,thetradebillacceptance,theopeningoftheimportLC,theexportLCdocumentarybills,theimportdocumentarybillsandtheopeningofdomesticLC.AsofJune30,2019,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,theworkingcapitalloansandthediscountingofcommercialacceptancebills,etc.AsofJune30,2019,atotalofRMB20,000,000.00wasusedfromtheabovecreditline.
(11)OnNovember28,2018,theCompanysignedthecreditlinecontract(No.XYSHSXZ(2018)D0152)withShenzhenBranchofChinaIndustrialBank,applyingforthemaximumcreditlineofRMB2,000,000,000.00,andthecreditlinecouldbeusedto(butnotlimitedto)theworkingcapitalloan,thebankacceptance,thenon-financingguarantee,andthelettersofcredit,etc.ThecreditlineperiodisvalidfromNovember28,2018toNovember28,2019.AsofJune30,2019,atotalofRMB479.922millionwasusedfromtheabove
creditline,andtheremainingcreditlineisRMB1520.078million.
(12)TheCompanyappliedthecreditlineofRMB1,200,000,000.00viaShenzhenOCTBranchofAgriculturalBankofChinawhichcouldbeusedfortheloans,thebillacceptance,thenotesdiscounted,theopeningofL/C,thepackingloan,theimportbilladvance,theexportbillpurchaseandtheopeningoflettersofguarantee.ThecreditlineshallbevalidfromFebruary28,2018toFebruary28,2019.AsofJune30,2019,atotalofRMB1,060,000,000.00wasusedfromtheabovecreditline,andtheremainingcreditlineisRMB140,000,000.00.
(13)TheCompanyappliedthecreditlinenomorethanRMB480,000,000.00viaShenzhenBranchofNingboBankwhichcouldbeusedfortheloans,thebillacceptance,thenotesdiscounted,theopeningofLC,thepackingloan,theimportbilladvance,theexportbillpurchaseandtheopeningoflettersofguarantee.ThecreditlineshallbevalidfromNovember29,2018toNovember29,2019.AsofJune30,2019,atotalofRMB180,000,000.00wasusedfromtheabovecreditline.
(14)TheCompanyappliedthecreditlinenomorethanRMB500,000,000.00viaShenzhenBranchofShanghaiPudongDevelopmentBankwhichcouldbeusedfortheshort-termloans,bankacceptancebill,thenotesdiscounted,theopeningofdomesticL/C,andtheimportletterofcredit.Theexpirtionofsingledealiswithinoneyear.AsofJune30,2019,atotalofRMB497,800,000.00wasusedfromtheabovecreditline,andtheremainingcreditlineisRMB2,200,000.00.
(15)TheCompanyappliedthecreditlinenomorethanRMB110,000,000.00viaShenzhenNantouBranchofHuaXiaBankwhichcouldbeusedfortheloans,thebillacceptance,thenotesdiscounted,andtheopeningofL/C,etc.AsofJune30,2019,atotalofRMB100,000,000.00wasusedfromtheabovecreditline,andtheremainingcreditlineisRMB0.
(16)TheCompanyappliedthenon-commitmentcombinedrevolvingcreditlinenomorethanUSD30,000,000.00viaShenzhenNantouBranchofHSBCwhichcouldbeusedforthefinancialstandbyguarantee,commercialfinancing,short-termloanbusiness.AsofJune30,2019,atotalofUSD29,509,786.85wasusedfromtheabovecreditline.
(17)TheCompanyappliedforthecreditlineofRMB2,200,000,000.00viaShenzhenOCTBranchofChinaConstructionBank,ofwhich,RMB940,000,000.00wasusedasthecomprehensivecreditline,RMB200,000,000.00thefinancingcreditline,RMB500,000,000.00thebonds,RMB40,000,000.00theworkingcapitalloan,RMB20,000,000.00thecapitaltransactioncreditlineandRMB500,000,000.00other
businesses.AsofJune30,2019,atotalofRMB1056.89millionwasusedfromtheabovecreditline,andtheremainingcreditlineisRMB1143.11million.
7.AccountsreceivableinGuangdongHuaxingBank:
TheCompanyenteredintotheDomesticFactoringBusinessContractwithGuangdongHuaxingBankShenzhenBranch(ContractNo.HXSZF20181130001).AccordingtotheContact,ShenzhenBranchofGuangdongHuaxingBankprovidestheCompanywithafactoringquotanotexceedingRMB500million,withavalidityfromNovember30,2018toNovember29,2019.AsofJune30,2019,thefactoringofaccountsreceivableoftheCompanyinthebankamountedtoRMB486,000,000.00.XV.NotesofMainItemsintheFinancialStatementsoftheCompany
1.NotesReceivable
(1)NotesReceivableListedbyCategory
Item
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebill | 1,588,216,743.04 | 2,176,411,080.13 |
| Tradeacceptance | - | 4,755,603.77 |
| Total | 1,588,216,743.04 | 2,181,166,683.90 |
(2)NotesReceivablePledgedbytheCompanyatthePeriod-end
| Item | Amount |
| Bankacceptancebill | 1,162,583,020.53 |
| Total | 1,162,583,020.53 |
(3)NotesReceivableEndorsedbytheCompanyorDiscountedandnotdueontheBalanceSheetDateatthePeriod-end
| Item | DerecognizedAmountattheperiod-end | Non-derecognizedamountattheperiod-end |
| Bankacceptancebill | 30,000.00 | - |
| Total | 30,000.00 | - |
(4)NotesTransferredtoAccountsReceivablebecauseDraweroftheNotesFailedtoExecutetheContractorAgreementatthePeriod-end
| Item | Amountofthenotestransferredtoaccountsreceivableattheperiod-end |
| Tradeacceptance | 634,527,889.84 |
| Total | 634,527,889.84 |
2.AccountsReceivable
(1)AccountsReceivableClassifiedbyAging
Aging
| Aging | Endingbalance |
| Within1year | 7,570,772,386.95 |
| 1to2years | 773,828,913.36 |
| 2to3years | 2,153,499.92 |
| 3to4years | 5,665,927.72 |
| Over4years | 167,507,512.11 |
| Subtotal | 8,519,928,240.06 |
| Less:Baddebtprovision | 253,216,175.40 |
| Total | 8,266,712,064.66 |
(2)AccountsReceivableClassifiedbyBadDebtWithdrawalMethod
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%） | Amount | Withdrawalproportion(%） | ||
| Accountsreceivableforwhichexpectedcreditlossseparatelyaccrued | 661,786,861.45 | 7.77 | 67,967,189.08 | 10.27 | 593,819,672.37 |
| Accountsreceivableforwhichexpectedcreditlossseparatelyaccruedbygroups | |||||
| Ofwhich:Aginggroup | 1,092,201,413.66 | 12.82 | 185,248,986.32 | 16.96 | 906,952,427.34 |
| Engineeringexpensegroup | - | - | - | - | - |
| RelatedpartygroupintheCompany’scombinationscope | 6,765,939,964.95 | 79.41 | - | - | 6,765,939,964.95 |
| Total | 8,519,928,240.06 | 100.00 | 253,216,175.40 | 2.97 | 8,266,712,064.66 |
(Continued)
| Category | Beginningbalance | ||
| Carryingamount | Baddebtprovision | Carryingvalue | |
Carryingamount
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | ||
| Accountsreceivableforwhichexpectedcreditlossseparatelyaccrued | 767,486,677.87 | 10.00 | 69,790,565.32 | 9.09 | 697,696,112.55 |
| Accountsreceivableforwhichexpectedcreditlossseparatelyaccruedbygroups | - | - | - | - | - |
| Ofwhich:Aginggroup | 1,029,783,688.54 | 13.42 | 177,262,039.88 | 17.21 | 852,521,648.66 |
| Engineeringexpensegroup | - | - | - | - | - |
| RelatedpartygroupintheCompany’scombinationscope | 5,876,525,075.32 | 76.58 | - | - | 5,876,525,075.32 |
| Total | 7,673,795,441.73 | 100.00 | 247,052,605.20 | 3.22 | 7,426,742,836.53 |
1Accountsreceivablewithsignificantsingleamountforwhichbaddebtprovision
separatelyaccruedattheperiod-end
| Accountsreceivable(byunit) | Endingbalance | |||
| Carryingamount | Baddebtprovision | Withdrawalproportion(%) | Withdrawalreason | |
| CEFC(Shanghai)GroupCo.,Ltd. | 300,027,889.84 | 30,002,788.98 | 10.00 | Debtdefaultonnfoormationdisclosure |
| HongtuSanbaoHigh-TechTechnologyCo.,Ltd. | 200,000,000.00 | 10,000,000.00 | 5.00 | Debtdefaultonnfoormationdisclosure,difficultinworkingcapital |
| ChinaNuclearEngineeringConstructionGroupCo.,Ltd. | 84,500,000.00 | 4,225,000.00 | 5.00 | Difficultinworkingcapital |
| ChinaEnergyPowerFuelCo.,Ltd. | 50,000,000.00 | 5,000,000.00 | 10.00 | Difficultinworkingcapital |
| HenanRadioandTelevisionNetworkCo.,Ltd. | 4,580,000.00 | 1,374,000.00 | 30.00 | Expectedtobedifficulttorecoverinfull |
| BeijingCPLotusStore | 1,656,628.91 | 1,656,628.91 | 100.00 | Expectedtobedifficulttorecoverinfull |
| QinhuangdaoBaihaiElectricalApplianceCo.,Ltd. | 1,430,290.00 | 430,290.00 | 30.08 | Expectedtobedifficulttorecoverinfull |
| Other | 19,592,052.70 | 15,278,481.19 | 77.98 | —— |
| Total | 661,786,861.45 | 67,967,189.08 | 10.27 | —— |
②Amongthesegroups,accountsreceivableadoptingagingmethodtowithdrawbaddebtprovision
Item
| Item | Endingbalance | ||
| Accountsreceivable | Baddebtprovision | Withdrawalproportion(%) | |
| Within1year | 804,316,677.28 | 16,331,149.74 | 2.03 |
| 1to2years | 127,366,110.66 | 9,386,882.36 | 7.37 |
| 2to3years | 1,146,640.85 | 253,980.95 | 22.15 |
| 3to4years | 261,523.81 | 166,512.21 | 63.67 |
| Over4years | 159,110,461.06 | 159,110,461.06 | 100.00 |
| Total | 1,092,201,413.66 | 185,248,986.32 | 16.96 |
③Amongthesegroups,accountsreceivableadoptingothermethodtowithdrawbaddebtprovision
| Item | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion(%) | |
| RelatedpartygroupintheCompany’scombinationscope | 6,765,939,964.95 | - | - |
| Total | 6,765,939,964.95 | - | - |
(3)ParticularsofBadDebtProvision
| Item | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | ||
| Withdrawal | Reversalorrecovery | Write-off/otherdecrease | |||
| Accountsreceivableforwhichexpectedcreditlossseparatelyaccrued | 69,790,565.32 | 2,756,064.82 | 4,579,441.06 | 67,967,189.08 | |
| Accountsreceivableforwhichexpectedcreditlossseparatelyaccruedbygroups | - | ||||
| Ofwhich:Aginggroup | 177,262,039.88 | 7,986,946.44 | 185,248,986.32 | ||
| Engineeringexpensegroup | - | - | |||
RelatedpartygroupintheCompany’scombinationscope
| RelatedpartygroupintheCompany’scombinationscope | - | - | |||
| Total | 247,052,605.20 | 10,743,011.26 | 4,579,441.06 | - | 253,216,175.40 |
Ofwhich,thesignificantrecoveredorreversedamountofbaddebtprovisioninthecurrentperiod.
| Name | Reversalorrecovery | ThewayofReversalorrecovery |
| JizhongEnergyInternationalLogisticsGroupCo.,Ltd. | 3,000,000.00 | Recovered |
| Total | 3,000,000.00 | —— |
(4)ThereisnoAccountsReceivableActuallyVerifiedintheCurrentPeriod
(5)Top5AccountsreceivablewithinsignificantsingleamountforwhichbaddebtprovisionseparatelyaccruedTotalamountofTop5ofendingbalanceoftheaccountsreceivablecollectedaccordingtoarrearspartywasRMB8,386,297,751.93accountingfor98.43%oftotalendingbalanceofaccountsreceivable.TotalendingbalanceofbaddebtprovisionwithdrawnwasRMB30,002,788.98.
3.OtherReceivables
| Item | Endingbalance | Beginningbalance |
| Interestreceivable | 2,276,507.84 | 5,769,663.24 |
| Dividendsreceivable | - | - |
| Otherreceivables | 7,866,615,369.75 | 6,660,069,551.06 |
| Total | 7,868,891,877.59 | 6,665,839,214.30 |
(1)InterestReceivable
| Item | Endingbalance | Beginningbalance |
| Fixtimedeposit | 2,117,568.41 | 3,435,261.69 |
| Entrustedloans | 153,476.93 | 2,328,939.05 |
| Wealthmanagementincome | 5,462.50 | 5,462.50 |
| Total | 2,276,507.84 | 5,769,663.24 |
(2)OtherReceivables
①OtherReceivablesDisclosedbyAging
Aging
| Aging | Endingbalance |
| Within1year | 6,932,521,149.32 |
| 1to2years | 513,921,855.55 |
| 2to3years | 179,004,289.93 |
| 3to4years | 85,105,749.00 |
| 4to5years | 32,342,344.33 |
| Over5years | 313,666,650.76 |
| Subtotal | 8,056,562,038.89 |
| Less:Baddebtprovision | 189,946,669.14 |
| Total | 7,866,615,369.75 |
②ParticularsofWithdrawalofBadDebtProvision
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossofthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1January2019 | 26,795,869.14 | 162,653,423.19 | 189,449,292.33 | |
| Balanceofotherreceivableon1January2019inthecurrentperiod: | - | |||
| --TransfertoSecondstage | - | |||
| --TransfertoThirdstage | - | |||
| --ReversetoSecondstage | - | |||
| --ReversetoThirdstage | - | |||
| Withdrawalofthecurrentperiod | 662,414.01 | 662,414.01 | ||
| Reversalofthecurrentperiod | 165,037.20 | 165,037.20 | ||
| Write-offsofthecurrentperiod | - | |||
| Verificationofthecurrentperiod | - | |||
| Otherchanges | - | |||
| Balanceof30June2019 | 27,458,283.15 | - | 162,488,385.99 | 189,946,669.14 |
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion | Amount | Withdrawalproportion | ||
(%)
| (%) | (%) | ||||
| Otherreceivablesforwhichexpectedcreditlossseparatelyaccrued | 173,251,217.33 | 2.15 | 162,488,385.99 | 93.79 | 10,762,831.34 |
| Otherreceivableswithdrawnbaddebtprovisionaccordingtocreditriskscharacteristics: | |||||
| Group1:Aginggroup | 168,118,322.40 | 2.09 | 26,711,552.07 | 15.89 | 141,406,770.33 |
| Group2:Low-riskgroup | 74,673,108.11 | 0.93 | 746,731.08 | 1 | 73,926,377.03 |
| Group3:RelatedpartygroupintheCompany’scombinationscope | 7,640,519,391.05 | 94.83 | - | ||
| Total | 8,056,562,038.89 | 100 | 189,946,669.14 | 2.36 | 7,866,615,369.75 |
| Category | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Otherreceivablesforwhichexpectedcreditlossseparatelyaccrued | 173,765,477.33 | 2.54 | 162,653,423.19 | 93.61 | 11,112,054.14 |
| Otherreceivableswithdrawnbaddebtprovisionaccordingtocreditriskscharacteristics: | - | ||||
| Group1:Aginggroup | 123,303,853.71 | 1.8 | 26,478,680.53 | 21.47 | 96,825,173.17 |
| Group2:Low-riskgroup | 29,986,121.11 | 0.44 | 317,188.61 | 1.06 | 29,668,932.50 |
| Group3:RelatedpartygroupintheCompany’scombinationscope | 6,522,463,391.24 | 95.22 | - | - | 6,522,463,391.24 |
| Total | 6,849,518,843.39 | 100 | 189,449,292.33 | 2.77 | 6,660,069,551.06 |
③ParticularsofBadDebtProvision
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | ||
| Withdrawal | Reversalorrecovery | Withdrawal | |||
| Otherreceivabl | 162,653,423.19 | - | 165,037.20 | - | 162,488,385.99 |
esforwhichexpectedcreditlossseparatelyaccrued
| esforwhichexpectedcreditlossseparatelyaccrued | |||||
| AgingGroup | 26,478,680.53 | 232,871.54 | - | 26,711,552.07 | |
| Low-riskGroup | 317,188.61 | 429,542.47 | - | 746,731.08 | |
| Total | 189,449,292.33 | 662,414.01 | 165,037.20 | - | 189,946,669.14 |
④ThereisnoAccountsReceivableActuallyVerifiedintheCurrentPeriod⑤Top5Accountsreceivablewithinsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued
| Nameoftheentity | Nature | Endingbalance | Aging | Proportiontoendingbalanceoftotalotherreceivables% | Endingbalanceofbaddebtprovision |
| KonkaHuanjia | Related-partyborrowings | 1,500,000,000.00 | Within1year | 18.62 | - |
| TelecommunicationTechnology | Related-partyborrowings | 1,135,134,400.00 | Within1year | 14.09 | - |
| KonkaInvestment | Related-partyborrowings | 1,019,000,000.00 | Within1year | 12.65 | - |
| AnhuiTongchuang | Related-partyborrowings | 580,000,000.00 | Within1year,1to2years | 7.20 | - |
| EconTechnology | Related-partyborrowings | 471,614,259.00 | Within1year | 5.85 | - |
| Total | — | 4,705,748,659.00 | — | 58.41 | - |
⑥ThereisnoOtherReceivableswhichTerminatetheRecognitionowningtotheTransferoftheFinancialAssets.
⑦ThereisnoAmountoftheAssetsandLiabilitiesFormedbytheTransferandtheContinuesInvolvementofAccountsReceivable.
4.Long-termEquityInvestment
(1)CategoryofLong-termEquityInvestment
Item
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserve | Carryingvalue | Carryingamount | Depreciationreserve | Carryingvalue | |
| Investmenttosubsidiaries | 5,066,125,372.51 | 46,732,484.69 | 5,019,392,887.82 | 4,562,175,372.51 | 46,732,484.69 | 4,515,442,887.82 |
| Investmenttoassociatedenterprises | 1,705,141,187.47 | 5,158,909.06 | 1,699,982,278.41 | 1,672,678,055.95 | 5,158,909.06 | 1,667,519,146.89 |
| Total | 6,771,266,559.98 | 51,891,393.75 | 6,719,375,166.23 | 6,234,853,428.46 | 51,891,393.75 | 6,182,962,034.71 |
(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 | 3,637,470.00 | - | - | 3,637,470.00 | - | - |
| KonkaHouseholdAppliances | 10,732,485.69 | - | - | 10,732,485.69 | - | 10,732,484.69 |
| TelecommunicationTechnology | 300,000,000.00 | 60,000,000.00 | - | 360,000,000.00 | - | - |
Investee
| Investee | Beginningbalance | Increase | Decrease | Endingbalance | Depreciationreservewithdrawn | Endingbalanceofdepreciationreserve |
| Domesticappliance | 31,500,000.00 | - | - | 31,500,000.00 | - | - |
| FittingsTechnology | 48,750,000.00 | - | - | 48,750,000.00 | - | - |
| KonkaFactoring | 300,000,000.00 | - | - | 300,000,000.00 | - | - |
| Wankaida | 10,000,000.00 | - | - | 10,000,000.00 | - | - |
| AnhuiTongchuang | 481,702,612.22 | - | - | 481,702,612.22 | - | - |
| BeijingKonka | 200,000,000.00 | - | - | 200,000,000.00 | - | - |
| KonkaE-display | 7,200,000.00 | - | 7,200,000.00 | - | - | - |
| CommercialTechnology | 5,832,000.00 | - | - | 5,832,000.00 | - | - |
| MobileInternet | 10,200,000.00 | - | - | 10,200,000.00 | - | - |
| E2info | 19,322,040.00 | - | - | 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 | 25,500,000.00 | - | - | 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 | - | - |
Investee
| Investee | Beginningbalance | Increase | Decrease | Endingbalance | Depreciationreservewithdrawn | Endingbalanceofdepreciationreserve |
| ElectronicsTechnology | 1,000,000,000.00 | - | - | 1,000,000,000.00 | - | - |
| SichuanKangjiatong | 1,020,000.00 | 14,280,000.00 | - | 15,300,000.00 | - | - |
| 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 | - | - |
| ShenzhenKONSEMI | 14,000,000.00 | 71,720,000.00 | - | 85,720,000.00 | - | - |
| KonkaRongheIndustrialTechnology(Foshan)Co.,Ltd. | - | 5,100,000.00 | - | 5,100,000.00 | - | - |
| SuiningElectronicTechnologicalInnovation | - | 200,000,000.00 | - | 200,000,000.00 | - | - |
| ShenzhenKonkaEco-DevelopmentInvestmentCo.,Ltd. | - | 50,000.00 | - | 50,000.00 | - | - |
| SuiningKonka | - | 200,000,000.00 | - | 200,000,000.00 | - | - |
Investee
| Investee | Beginningbalance | Increase | Decrease | Endingbalance | Depreciationreservewithdrawn | Endingbalanceofdepreciationreserve |
| Total | 4,562,175,372.51 | 551,150,000.00 | 47,200,000.00 | 5,066,125,372.51 | - | 46,732,484.69 |
(3)InvestmenttoJointVenturesandAssociatedEnterprises
| Investee | Beginningbalance | Beginningbalanceofdepreciationonreserve | Increase/decrease | ||||
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesofotherequity | |||
| ShenzhenKonkaInformationNetworkCo.,Ltd. | 19,155,353.91 | 5,158,909.06 | - | - | -10,458,637.68 | - | - |
| ShenzhenYaodeTechnologyCo.,Ltd. | 222,210,835.18 | - | - | - | 1,615,602.55 | - | - |
| ChutianDragonCo.,Ltd. | 624,845,604.93 | - | - | - | 13,279,493.50 | - | - |
| KonkaGreen,KonkaTechnology | 78,409,903.14 | - | - | - | -180,177.55 | - | - |
| ZhuhaiJinsuPlasticCo.,Ltd. | 11,040,246.82 | - | - | - | 428,175.28 | - | - |
| ShenzhenKonkaIntelligentElectricalApparatusCo.,Ltd. | 2,287,478.52 | - | - | - | -152,488.28 | - | - |
| ShenzhenZhongbingKonkaTechnologyCo.,Ltd. | 10,617,873.79 | - | - | - | -2,230,059.14 | - | - |
| GuangdongHotcommInformationTechnologyCo.,Ltd. | - | - | - | - | - | - | - |
Investee
| Investee | Beginningbalance | Beginningbalanceofdepreciationonreserve | Increase/decrease | ||||
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesofotherequity | |||
| ZhonggaoKonkaIntelligentTechnology(Beijing)Co.,Ltd. | - | - | - | - | - | - | - |
| ShenzhenOCTLIFENetworkTechnologyCo.,Ltd. | 3,592,514.06 | - | - | 3,592,514.06 | - | - | - |
| KunshanKonka | 146,846,610.14 | - | - | - | -4,811,843.11 | - | - |
| KunshanKangsheng | 175,254,554.65 | - | - | - | - | - | - |
| KaikaiShijie | 35,364,497.05 | - | - | - | - | - | - |
| ShenzhenBosserNewMaterialsCo.,Ltd. | 79,859,338.44 | - | - | - | 1,056,895.31 | - | - |
| HelongjiangLongkangZhijiaTechnologyCo.,Ltd. | 6,400,480.52 | - | - | - | -239,050.00 | - | - |
| ShaanxiSilkRoadCloudSmartTechCo.,Ltd. | 4,522,509.33 | - | - | - | - | - | - |
| WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | 252,270,255.47 | - | - | - | 5,620,617.83 | - | - |
| ShenzhenE-displayCo.,Ltd. | - | - | - | - | - | - | - |
| ChuzhouKonkaTID | - | - | - | - | - | - | - |
Investee
| Investee | Beginningbalance | Beginningbalanceofdepreciationonreserve | Increase/decrease | ||||
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesofotherequity | |||
| Total | 1,672,678,055.95 | 5,158,909.06 | - | 3,592,514.06 | 3,928,528.71 | - | - |
(Continued)
| Investee | Increase/decrease | Endingbalance | Endingbalanceofdepreciationreserve | ||
| Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Other | |||
| ShenzhenKonkaInformationNetworkCo.,Ltd. | - | - | - | 8,696,716.23 | 5,158,909.06 |
| ShenzhenYaodeTechnologyCo.,Ltd. | - | - | - | 223,826,437.73 | - |
| ChutianDragonCo.,Ltd. | - | - | - | 638,125,098.43 | - |
| KonkaGreen,KonkaTechnology | - | - | - | 78,229,725.59 | - |
| ZhuhaiJinsuPlasticCo.,Ltd. | 2,070,000.00 | - | - | 9,398,422.10 | - |
| ShenzhenKonkaIntelligentElectricalApparatusCo.,Ltd. | - | - | - | 2,134,990.24 | - |
| ShenzhenZhongbingKonkaTechnologyCo.,Ltd. | - | - | - | 8,387,814.65 | - |
| GuangdongHotcommInformationTechnologyCo.,Ltd. | - | - | - | - | - |
| ZhonggaoKonkaIntelligentTechnology(Beijing)Co.,Ltd. | - | - | - | - | - |
| ShenzhenOCTLIFENetworkTechnologyCo.,Ltd. | - | - | - | - | - |
| KunshanKonka | - | - | - | 142,034,767.03 | - |
Investee
| Investee | Increase/decrease | Endingbalance | Endingbalanceofdepreciationreserve | ||
| Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Other | |||
| KunshanKangsheng | - | - | - | 175,254,554.65 | - |
| KaikaiShijie | - | - | - | 35,364,497.05 | - |
| ShenzhenBosserNewMaterialsCo.,Ltd. | - | - | - | 80,916,233.75 | - |
| HelongjiangLongkangZhijiaTechnologyCo.,Ltd. | - | - | - | 6,161,430.52 | - |
| ShaanxiSilkRoadCloudSmartTechCo.,Ltd. | - | - | - | 4,522,509.33 | - |
| WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | - | - | - | 257,890,873.30 | - |
| ShenzhenE-displayCo.,Ltd. | - | - | 16,926,689.50 | 16,926,689.50 | - |
| ChuzhouKonkaTID | 17,270,427.37 | 17,270,427.37 | - | ||
| Total | 2,070,000.00 | - | 34,197,116.87 | 1,705,141,187.47 | 5,158,909.06 |
5.OperatingRevenueandCostofSales
(1)OperatingRevenueandCostofSales
Item
| Item | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Mainoperations | 3,321,449,906.68 | 3,349,145,473.78 | 4,519,683,896.29 | 4,013,358,791.77 |
| Otheroperations | 2,046,571,803.72 | 1,915,004,019.37 | 2,036,884,619.01 | 1,944,666,140.94 |
| Total | 5,368,021,710.40 | 5,264,149,493.15 | 6,556,568,515.30 | 5,958,024,932.71 |
(2)MainOperations(ClassifiedbyIndustry)
| Industry | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Electronicindustry | 3,321,449,906.68 | 3,349,145,473.78 | 4,519,683,896.29 | 4,013,358,791.77 |
| Total | 3,321,449,906.68 | 3,349,145,473.78 | 4,519,683,896.29 | 4,013,358,791.77 |
(3)MainOperations(ClassifiedbyProduct)
| Product | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| ColorTVbusiness | 3,090,957,961.84 | 3,121,985,874.83 | 4,224,714,468.42 | 3,730,979,831.79 |
| Consumerappliancesbusiness | 42,860,456.45 | 37,086,020.47 | 100,943,929.96 | 89,279,454.11 |
| Other | 187,631,488.39 | 190,073,578.48 | 194,025,497.91 | 193,099,505.86 |
| Total | 3,321,449,906.68 | 3,349,145,473.78 | 4,519,683,896.29 | 4,013,358,791.77 |
(4)MainOperations(ClassifiedbyArea)
| Area | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Domesticsales | 2,567,643,989.49 | 2,621,004,287.15 | 3,600,826,510.58 | 3,175,143,251.38 |
| Overseassales | 753,805,917.19 | 728,141,186.63 | 918,857,385.71 | 838,215,540.39 |
| Total | 3,321,449,906.68 | 3,349,145,473.78 | 4,519,683,896.29 | 4,013,358,791.77 |
(5)OperatingRevenuefromtheTop5Customers
Period
| Period | Totaloperatingrevenuefromthetop5customers | ProportiontotheoperatingrevenueoftheReportingPeriod |
| Jan.-Jun.2019 | 948,596,365.49 | 17.67 |
| Jan.-Jun.2018 | 1,421,092,900.82 | 11.74 |
6.InvestmentIncome
| Item | ReportingPeriod | Sameperiodoflastyear |
| Long-termequityinvestmentincomeaccountedbycostmethod | - | 634,394,080.11 |
| Long-termequityinvestmentincomeaccountedbyequitymethod | 3,928,528.71 | 13,240,183.30 |
| Investmentincomefromdisposaloflong-termequityinvestment | 79,766,195.94 | 48,431,372.55 |
| Investmentincomefromholdingoffinancialassetsatfairvaluethroughprofitorloss | -10,285,883.02 | - |
| Investmentincomefromdisposaloffinancialassetsatfairvaluethroughprofitorloss | - | -82,412,478.05 |
| Investmentincomefromholdingofheld-to-maturityinvestments | - | - |
| Investmentincomefromdisposalofheld-to-maturityinvestments | - | - |
| Investmentincomefromholdingofavailable-for-salefinancialassets | - | 13,740,000.00 |
| Investmentincomefromdisposalofavailable-for-salefinancialassets | - | - |
| Gainsfromre-measurementofresidualequityatfairvalueafterlosingcontrolpower | 1,225,905.15 | 445,568,627.45 |
| Incomefromentrustfinancialproductsandentrustloans | 111,340,992.10 | 86,485,492.92 |
| Financialassetstransferredfromequityinvestmentsaccountedbyequitymethod | - | - |
| Total | 185,975,738.88 | 1,159,447,278.28 |
XVI.SupplementaryMaterials
1.ItemsandAmountsofNon-recurringProfitorLoss
| Item | Amount | Note |
| Gain/Lossarisingfromdisposalofnon-currentassets | 570,011,162.17 |
Item
| Item | Amount | Note |
| Taxrebates,reductionsorexemptionsduetoapprovalbeyondauthorityorthelackofofficialapprovaldocuments | ||
| Governmentsubsidiesrecognizedinthecurrentperiod,exceptforthoseacquiredintheordinarycourseofbusinessorgrantedatcertainquotasoramountsaccordingtothegovernment’sunifiedstandards | 320,821,164.45 | |
| Capitaloccupationchargesonnon-financialenterprisesthatarerecordedintocurrentprofitorloss | ||
| GainsduetothattheinvestmentcostsfortheCompanytoobtainsubsidiaries,associatesandjointventuresarelowerthantheenjoyablefairvalueoftheidentifiablenetassetsoftheinvesteeswhenmakingtheinvestments | ||
| Gain/Lossonnon-monetaryassetswap | ||
| Gain/Lossonentrustingotherswithinvestmentsorassetmanagement | 110,312,982.21 | |
| AssetimpairmentprovisionsduetoactsofGodsuchasnaturaldisasters | ||
| Gain/Lossfromdebtrestructuring | ||
| Expensesonbusinessreorganization,suchasexpensesonstaffarrangements,integration,etc. | ||
| Gain/Lossonthepartoverthefairvalueduetotransactionswithdistinctlyunfairprices | ||
| Currentnetprofitorlossofsubsidiariesacquiredinbusinesscombinationunderthesamecontrolfromperiod-beginningtocombinationdate | ||
| Gain/LossincurredfromcontingencyunrelatedtotheCompany’snormaloperatingbusinesses. | ||
| Gain/Lossonchangesinfairvaluearisingfromholdingoftradingfinancialassetsandliabilitiesandinvestmentincomefromdisposaloftradingfinancialassets,financialliabilitiesandavailable-for-salefinancialassetsotherthaneffectivehedgebusinessrelatedtotheCompany’snormaloperatingbusinesses | -13,291,264.69 | |
| Reverseofbaddebtprovisionofaccountsreceivableindividuallyconductingimpairmenttest | ||
| Gain/lossonentrustmentloans | 928,721.16 | |
| Gain/lossonchangeinfairvalueofinvestmentpropertyofwhichthesubsequent |
Item
| Item | Amount | Note |
| measurementiscarriedoutadoptingfairvaluemethod | ||
| Effectoncurrentprofitorlosswhenaone-offadjustmentismadetocurrentprofitorlossaccordingtorequirementsoftaxation,accountingandotherrelevantlawsandregulations | ||
| Custodyfeeincomewhenentrustedwithoperation | ||
| Othernon-operatingincomeandexpenseotherthantheabove | 19,460,574.99 | |
| Projectconfirmedwiththedefinitionofnon-recurringgainsandlossesandlosses | 136,688,905.38 | |
| Subtotal | 1,144,932,245.67 | |
| Incometaxeffects | 82,538,800.98 | |
| Non-controllinginterestseffects(aftertax) | 86,714,790.39 | |
| Total | 975,678,654.30 |
Note:thenumber“+”amongthenon-recurringprofitorlossitemsreferstorevenueandincome,while“-”referredtolossesorexpense.
Therecognitionofthenon-recurringprofitorlossitemswasexecutedaccordingtotheregulationsofNo.1oftheInformationDisclosureExplanatoryNoticeoftheCompaniesPublicOfferingSecurities-Non-recurringProfitorLoss(ZJHAnnouncement[2008]No.43).AmountinvolvedintheitemthattheCompanyclassifiesasannon-recurringgain/lossaccordingtothedefinitionintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—Non-recurringGainsandLosses,orclassifiesanyextraordinarygain/lossitemmentionedinthesaidexplanatoryannouncementasarecurrentgain/lossitem(includinggovernmentsubsidiesrecordedinthecurrentprofitorloss)isasfollows:
| Item | Amount | Reason |
| Softwaretaxrebates | 23,063,806.91 | Governmentgrantsrecognizedinthecurrentperiod,andacquiredintheordinarycourseofbusinessorgrantedatcertainquotasoramountsaccordingtothegovernment’sunifiedstandards |
2.ReturnonEquityandEarningsPerShare
| ProfitasofReportingPeriod | WeightedaverageROE(%) | EPS(Yuan/share) |
EPS-basic
| EPS-basic | EPS-diluted | ||
| NetprofitattributabletoordinaryshareholdersoftheCompany | 4.25 | 0.1465 | 0.1465 |
| NetprofitattributabletoordinaryshareholdersoftheCompanyafterdeductionofnon-recurringprofitorloss | -7.51 | -0.2587 | -0.2587 |
PartXIDocumentsAvailableforReference
I.ThefinancialstatementswiththesignaturesandsealsoftheCompany’slegalrepresentative,ChiefFinancialOfficerandheadofthefinancialdepartment;II.TheoriginalsofalltheCompany’sdocumentsandannouncementsdisclosedtothepublicvianewspapersdesignatedbytheCSRCintheReportingPeriod;andIII.Otherrelevantmaterials.
TheBoardofDirectorsKonkaGroupCo.,Ltd.
6August2019