Stock Code: 000016, 200016 Stock Name: Konka Group-A, Konka Group-B Announcement No. 2021-87Bond Code: 114423, 114489 Bond Name: 19 Konka 02, 19 Konka 04114524, 114894 19 Konka 06, 21 Konka 01
133003, 133040 21 Konka 02, 21 Konka 03
KONKA GROUP CO., LTD.THIRD QUARTERLY REPORT 2021
Konka Group Co., Ltd. (hereinafter referred to as the “Company”) and all the members of theCompany’s Board of Directors hereby guarantee that the contents of this Report are true, accurate andcomplete and free of any misrepresentations, misleading statements or material omissions.
Important Notes:
1. The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,supervisors and senior management of the Company hereby guarantee that the contents of this Reportare true, accurate and complete and free of any misrepresentations, misleading statements or materialomissions, and collectively and individually accept legal responsibility for such contents.
2. The Company’s legal representative, Chief Financial Officer (CFO), and head of the financialdepartment (equivalent to financial manager) hereby guarantee that the financial statements carried inthis Report are factual, accurate and complete.
3. Indicate by tick mark whether the financial statements in this Report have been audited by anindependent auditor.
□Yes √ No
I Key Financial Information(I) Key Accounting Data and Financial IndicatorsIndicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
| Q3 2021 | YoY change (%) | Q1-Q3 2021 | YoY change (%) | |
| Operating revenue (RMB) | 9,816,584,505.55 | -20.04% | 31,626,746,378.63 | 6.13% |
| Net profit attributable to the listed company’s shareholders (RMB) | -211,828,259.25 | -140.68% | -126,378,339.68 | -120.54% |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) | -343,893,316.75 | 59.25% | -1,054,017,954.60 | 29.45% |
| Net cash generated from/used in operating activities (RMB) | —— | —— | -1,442,234,383.09 | -22.65% |
| Basic earnings per share (RMB/share) | -0.0880 | -140.70% | -0.0525 | -120.54% |
| Diluted earnings per share (RMB/share) | -0.0880 | -140.70% | -0.0525 | -120.54% | ||
| Weighted average return on equity (%) | -2.54% | -8.81% | -1.51% | -8.88% | ||
| 30 September 2021 | 31 December 2020 | Change (%) | ||||
| Total assets (RMB) | 53,000,401,444.22 | 49,876,267,493.61 | 6.26% | |||
| Equity attributable to the listed company’s shareholders (RMB) | 8,065,742,160.82 | 8,428,640,176.97 | -4.31% | |||
(II) Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
| Item | Q3 2021 | Q1-Q3 2021 | Note |
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | 66,306,638.40 | 334,537,657.20 | |
| Government grants through profit or loss (exclusive of government grants continuously given in the Company’s ordinary course of business at fixed quotas or amounts as per the government’s policies and standards) | 35,523,626.41 | 750,134,716.54 | |
| Gain or loss on fair-value changes on held-for-trading financial assets and liabilities & income from disposal of held-for-trading financial assets and liabilities and available-for-sale financial assets (exclusive of the effective portion of hedges that arise in the Company’s ordinary course of business) | 23,284,757.37 | 98,214,030.35 | |
| Gain or loss on loan entrustments | 20,982,294.05 | 57,446,982.60 | |
| Non-operating income and expense other than the above | 42,034,278.57 | 57,058,069.53 | |
| Less: Income tax effects | 43,387,800.28 | 273,232,093.50 | |
| Non-controlling interests effects (net of tax) | 12,678,737.02 | 96,519,747.80 | |
| Total | 132,065,057.50 | 927,639,614.92 | -- |
Other items that meet the definition of exceptional gain/loss:
□ Applicable √ Not applicable
No such cases in the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in theExplanatory Announcement No. 1 on Information Disclosure for Companies Offering TheirSecurities to the Public—Exceptional Gain/Loss Items:
√ Applicable □ Not applicable
| Item | Amount (RMB) | Reason |
| Tax rebates on software | 9,928,764.26 | Government grants continuously given in the Company’s ordinary course of business at fixed quotas or amounts as per the government’s policies and standards |
(III) Changes in Key Financial Statement Line Items and Explanation
√ Applicable □ Not applicable
Unit: RMB
| Item | Q1-Q3 2021 | Q1-Q3 2020 | Percentage of change | Main reason for change |
| Taxes and levies | 65,291,404.77 | 48,302,193.04 | 35.17% | Increase in stamp tax and land use tax |
| Other income | 760,063,480.80 | 468,038,917.63 | 62.39% | Increase in government grants |
| Return on investment | 467,513,252.27 | 1,932,345,020.63 | -75.81% | The disposal of the 51% interest in Dongguan Konka Investment Co., Ltd. in the same period of last year is not recurrent |
| Gain on changes in fair value | 80,454,582.18 | 0 | Changes in the fair value of financial assets at fair value through profit or loss were recognized in the current period | |
| Credit impairment loss | -83,508,804.27 | -419,369,553.83 | 80.09% | Decrease in allowances for expected credit impairment losses on receivables |
| Asset impairment loss | -37,285,530.58 | -98,202,971.26 | 62.03% | Decrease in inventory valuation allowances |
| Asset disposal income | 613,907.69 | 188,079,246.33 | -99.67% | The disposal of certain patents in the same period of last year is not recurrent |
| Non-operating income | 65,341,959.01 | 22,568,475.79 | 189.53% | Increase of various profits not directly related to the daily business activities of the enterprise |
| Non-operating expense | 8,552,951.51 | 14,122,911.48 | -39.44% | Decrease of various non operating expenses |
| Net profit attributable to owners of the Company as the parent | -126,378,339.68 | 615,363,686.82 | -120.54% | The current period saw a decline in the gross profit margin of principal operations as a result of sharp fluctuations of raw material prices, fiercer market competition, weak domestic consumption, impact of the continued overseas pandemic on exports, etc. Additionally, the disposal of the 51% interest in Dongguan Konka Investment Co., Ltd. in the same period of last year is not recurrent. |
| Net cash generated from/used in investing activities | -2,053,591,456.11 | 1,009,532,040.97 | -303.42% | Cash payments for the acquisition of fixed assets, intangible assets and other long-lived assets increased in the current period; and the income from the disposal of the 51% interest in Dongguan Konka Investment Co., Ltd. in the same period of last year is not recurrent |
| Net cash generated from/used in financing activities | 5,212,196,615.36 | 646,414,699.45 | 706.32% | Increase in borrowings obtained |
II Shareholder Information(I) Numbers of Ordinary Shareholders and Preference Shareholders with Resumed VotingRights as well as Holdings of Top 10 Shareholders
Unit: share
| Number of ordinary shareholders | 94,300 | Number of preference shareholders with resumed voting rights (if any) | 0 | |||||
| Top 10 shareholders | ||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held | Restricted shares held | Shares in pledge or frozen | |||
| Status | Shares | |||||||
| OVERSEAS CHINESE TOWN HOLDINGS COMPANY | State-owned legal person | 21.75% | 523,746,932 | 0 | ||||
| CITIC SECURITIES BROKERAGE (HONG KONG) CO., LTD. | Foreign legal person | 7.48% | 180,001,110 | 0 | ||||
| WANG JINGFENG | Domestic natural person | 4.61% | 111,000,000 | 0 | ||||
| GUOYUAN SECURITIES BROKER (HK) CO., LTD. | Foreign legal person | 2.47% | 59,500,325 | 0 | ||||
| HOLY TIME GROUP LIMITED | Foreign legal person | 2.38% | 57,289,100 | 0 | ||||
| GAOLING FUND,L.P. | Foreign legal person | 2.19% | 52,801,250 | 0 | ||||
| LI HANFA | Domestic | 1.97% | 47,546,687 | 0 | ||||
| natural person | ||||||||
| NAM NGAI | Foreign natural person | 0.94% | 22,567,540 | 0 | ||||
| CHINA MERCHANTS SECURITIES (HK) LIMITED | State-owned legal person | 0.80% | 19,314,220 | 0 | ||||
| BOCOM INTERNATIONAL SECURITIES LIMITED | Foreign legal person | 0.76% | 18,206,137 | 0 | ||||
| Top 10 unrestricted shareholders | ||||||||
| Name of shareholder | Unrestricted ordinary shares held | Shares by class | ||||||
| Class | Shares | |||||||
| OVERSEAS CHINESE TOWN HOLDINGS COMPANY | 523,746,932 | RMB-denominated ordinary share | 523,746,932 | |||||
| CITIC SECURITIES BROKERAGE (HONG KONG) CO., LTD. | 180,001,110 | Domestically listed foreign share | 180,001,110 | |||||
| WANG JINGFENG | 111,000,000 | RMB-denominated ordinary share | 111,000,000 | |||||
| GUOYUAN SECURITIES BROKER (HK) CO., LTD. | 59,500,325 | Domestically listed foreign share | 59,500,325 | |||||
| HOLY TIME GROUP LIMITED | 57,289,100 | Domestically listed foreign share | 57,289,100 | |||||
| GAOLING FUND,L.P. | 52,801,250 | Domestically listed foreign share | 52,801,250 | |||||
| LI HANFA | 47,546,687 | RMB-denominated ordinary share | 47,546,687 | |||||
| NAM NGAI | 22,567,540 | Domestically listed foreign share | 22,567,540 | |||||
| CHINA MERCHANTS SECURITIES (HK) LIMITED | 19,314,220 | Domestically listed foreign share | 19,314,220 | |||||
| BOCOM INTERNATIONAL SECURITIES LIMITED | 18,206,137 | Domestically listed foreign share | 18,206,137 | |||||
| Related or acting-in-concert parties among shareholders above | Happy Bloom Investment Limited, a wholly-owned subsidiary of the Company’s first majority shareholder Overseas Chinese Town Holdings Company (“OCT Group” for short), holds 180,001,110 and 18,360,000 ordinary shares in the Company respectively through CITIC Securities Brokerage (Hong Kong) Co., Ltd. and China Merchants Securities (HK) Limited. Happy Bloom Investment Limited and Overseas Chinese Town Holdings Company are parties acting in concert. Other than that, it is unknown whether the other shareholders are related parties or acting-in-concert parties or not. | |||||||
| Top 10 ordinary shareholders involved in securities margin trading | Wang Jingfeng holds 111,000,000 A-shares in the Company through his securities account for customer credit trading guarantee in Guotai Junan Securities Co., Ltd. Li Hanfa holds 47,546,687 A-shares in the Company through his securities account for customer credit trading guarantee in Western Securities Co., Ltd. | |||||||
(II) Number of Preference Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
III Other Significant Events
√ Applicable □ Not applicable
(I) Issuance of corporate bonds: So far, the plan for a public offering of RMB2.7 billion corporatebonds has been approved at a general meeting of the Company. And the said program is proceeding asscheduled.(II) Asset purchases via share offering and cash payment and matching fund raising: The Companyintended to acquire the 100% equity interests in Ganzhou MingGao Technology Co., Ltd. (MingGao
Technology) from the 11 shareholders of MingGao Technology (including Shenzhen MingGaoInvestment Holding Co., Ltd.) via share offering, and acquire the 100% equity interests in JiangsuHighstar Battery Manufacturing Co., Ltd. (Highstar Battery) from the 33 shareholders of HighstarBattery (including Jiangsu Highstar Group Co., Ltd.) via share offering and cash payment. To raisethe matching funds, the Company planned to carry out a share offering to its controlling shareholderOverseas Chinese Town Holdings Company. On 11 September 2021, the Company disclosed thepreliminary plan of the said transaction. Currently, the Company and the other parties concerned areactively proceeding with the transaction, and the relevant audit, assessment, etc. are still in theprocess.IV Financial Statements(I) Financial Statements
1. Consolidated Balance Sheet
Prepared by Konka Group Co., Ltd.
30 September 2021
Unit: RMB
| Item | 30 September 2021 | 31 December 2020 |
| Current assets: | ||
| Monetary assets | 6,517,483,201.63 | 5,431,530,180.90 |
| Settlement reserve | ||
| Loans to other banks and financial institutions | ||
| Held-for-trading financial assets | 618,249,541.66 | |
| Derivative financial assets | ||
| Notes receivable | 1,805,167,372.43 | 2,358,180,193.96 |
| Accounts receivable | 4,590,310,234.93 | 3,900,897,623.59 |
| Receivables financing | 22,519,281.92 | 84,057,197.44 |
| Prepayments | 1,329,877,710.17 | 1,183,270,543.41 |
| Premiums receivable | ||
| Reinsurance receivables | ||
| Receivable reinsurance contract reserve | ||
| Other receivables | 2,003,507,116.79 | 2,145,736,640.60 |
| Including: Interest receivable | 64,629,158.09 | 45,109,425.85 |
| Dividends receivable | 547,848.62 | 4,947,848.62 |
| Financial assets purchased under resale agreements | ||
| Inventories | 4,971,885,304.17 | 4,521,300,677.41 |
| Contract assets | 3,353,598,614.87 | 2,870,006,710.39 |
| Assets held for sale | ||
| Current portion of non-current assets | 15,966,544.22 | 112,310,158.82 |
| Other current assets | 2,192,366,633.07 | 1,913,146,483.39 |
| Total current assets | 26,802,682,014.20 | 25,138,685,951.57 |
| Non-current assets: | ||
| Loans and advances to customers | ||
| Debt investments |
| Other debt investments | ||
| Long-term receivables | 388,763,891.86 | 399,497,204.03 |
| Long-term equity investments | 4,517,861,815.37 | 4,375,833,584.65 |
| Investments in other equity instruments | 25,343,293.16 | 25,343,293.16 |
| Other non-current financial assets | 2,123,842,467.93 | 1,878,154,796.76 |
| Investment property | 514,016,612.30 | 538,585,668.29 |
| Fixed assets | 3,778,113,899.37 | 3,178,642,017.84 |
| Construction in progress | 9,679,677,544.14 | 9,236,643,931.68 |
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 80,331,299.82 | |
| Intangible assets | 1,682,310,457.35 | 1,189,191,001.51 |
| Development costs | 4,197,749.71 | |
| Goodwill | 675,795,873.17 | 675,795,873.17 |
| Long-term prepaid expense | 208,785,338.59 | 153,198,562.82 |
| Deferred income tax assets | 1,438,977,337.24 | 1,265,916,437.39 |
| Other non-current assets | 1,079,701,850.01 | 1,820,779,170.74 |
| Total non-current assets | 26,197,719,430.02 | 24,737,581,542.04 |
| Total assets | 53,000,401,444.22 | 49,876,267,493.61 |
| Current liabilities: | ||
| Short-term borrowings | 10,175,223,585.74 | 10,990,550,475.78 |
| Borrowings from the central bank | ||
| Loans from other banks and financial institutions | ||
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 1,131,332,605.48 | 1,335,987,026.21 |
| Accounts payable | 9,900,406,852.26 | 9,632,366,325.76 |
| Advances from customers | ||
| Contract liabilities | 915,365,318.79 | 1,217,367,735.94 |
| Financial assets sold under repurchase agreements | ||
| Customer deposits and deposits from other banks and financial institutions | ||
| Payables for acting trading of securities | ||
| Payables for underwriting of securities | ||
| Employee benefits payable | 181,632,538.41 | 476,616,244.45 |
| Taxes and levies payable | 288,511,309.50 | 508,214,059.16 |
| Other payables | 1,693,347,629.84 | 1,999,430,899.69 |
| Including: Interest payable | 217,393,304.06 | 220,837,380.17 |
| Dividends payable | ||
| Fees and commissions payable | ||
| Reinsurance payables | ||
| Liabilities directly associated with assets held for sale | ||
| Current portion of non-current liabilities | 4,939,693,616.89 | 376,896,566.29 |
| Other current liabilities | 270,159,345.13 | 441,774,317.23 |
| Total current liabilities | 29,495,672,802.04 | 26,979,203,650.51 |
| Non-current liabilities: | ||
| Insurance contract reserve |
| Long-term borrowings | 9,782,332,433.81 | 5,964,748,997.54 |
| Bonds payable | 2,292,323,113.26 | 4,993,212,788.32 |
| Including: Preference shares | ||
| Perpetual bonds | ||
| Lease liabilities | 51,408,096.50 | |
| Long-term payables | 441,742,380.11 | 481,409,849.96 |
| Long-term employee benefits payable | 5,145,947.70 | 5,248,309.14 |
| Provisions | 100,954,889.87 | 102,353,567.91 |
| Deferred income | 233,957,947.45 | 446,900,524.64 |
| Deferred income tax liabilities | 89,667,473.05 | 75,819,231.93 |
| Other non-current liabilities | 113,038,148.97 | 106,475,449.02 |
| Total non-current liabilities | 13,110,570,430.72 | 12,176,168,718.46 |
| Total liabilities | 42,606,243,232.76 | 39,155,372,368.97 |
| Owners’ equity: | ||
| Share capital | 2,407,945,408.00 | 2,407,945,408.00 |
| Other equity instruments | ||
| Including: Preference shares | ||
| Perpetual bonds | ||
| Capital reserves | 234,215,703.91 | 230,185,310.09 |
| Less: Treasury stock | ||
| Other comprehensive income | -16,338,571.91 | -16,583,042.42 |
| Specific reserve | ||
| Surplus reserves | 1,211,721,109.67 | 1,211,721,109.67 |
| General reserve | ||
| Retained earnings | 4,228,198,511.15 | 4,595,371,391.63 |
| Total equity attributable to owners of the Company as the parent | 8,065,742,160.82 | 8,428,640,176.97 |
| Non-controlling interests | 2,328,416,050.64 | 2,292,254,947.67 |
| Total owners’ equity | 10,394,158,211.46 | 10,720,895,124.64 |
| Total liabilities and owners’ equity | 53,000,401,444.22 | 49,876,267,493.61 |
Legal representative: Zhou Bin CFO: Li Chunlei Head of the financial department: Guo Zhihua
2. Consolidated Income Statement for Q1~Q3
Unit: RMB
| Item | Q1~Q3 2021 | Q1~Q3 2020 |
| 1. Revenues | 31,626,746,378.63 | 29,801,145,271.16 |
| Including: Operating revenue | 31,626,746,378.63 | 29,801,145,271.16 |
| Interest income | ||
| Insurance premium income | ||
| Fee and commission income | ||
| 2. Costs and expenses | 32,958,502,701.12 | 31,294,628,818.95 |
| Including: Cost of sales | 30,206,985,064.55 | 27,874,517,742.42 |
| Interest expense | ||
| Fee and commission expense | ||
| Surrenders | ||
| Net insurance claims paid | ||
| Net amount provided as insurance contract reserve |
| Expenditure on policy dividends | ||
| Reinsurance premium expense | ||
| Taxes and levies | 65,291,404.77 | 48,302,193.04 |
| Selling expense | 1,024,179,934.62 | 1,412,344,800.39 |
| Administrative expense | 553,122,321.69 | 731,101,590.75 |
| R&D expense | 433,072,311.03 | 486,664,300.94 |
| Finance costs | 675,851,664.46 | 741,698,191.41 |
| Including: Interest expense | 743,648,860.62 | 742,208,965.50 |
| Interest income | 123,952,533.58 | 132,894,768.38 |
| Add: Other income | 760,063,480.80 | 468,038,917.63 |
| Return on investment (“-” for loss) | 467,513,252.27 | 1,932,345,020.63 |
| Including: Share of profit or loss of joint ventures and associates | 75,468,924.12 | 45,185,728.73 |
| Income from the derecognition of financial assets at amortized cost (“-” for loss) | ||
| Exchange gain (“-” for loss) | ||
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) | 80,454,582.18 | |
| Credit impairment loss (“-” for loss) | -83,508,804.27 | -419,369,553.83 |
| Asset impairment loss (“-” for loss) | -37,285,530.58 | -98,202,971.26 |
| Asset disposal income (“-” for loss) | 613,907.69 | 188,079,246.33 |
| 3. Operating profit (“-” for loss) | -143,905,434.40 | 577,407,111.71 |
| Add: Non-operating income | 65,341,959.01 | 22,568,475.79 |
| Less: Non-operating expense | 8,552,951.51 | 14,122,911.48 |
| 4. Gross profit (“-” for loss) | -87,116,426.90 | 585,852,676.02 |
| Less: Income tax expense | 41,529,133.86 | 44,203,698.68 |
| 5. Net profit (“-” for net loss) | -128,645,560.76 | 541,648,977.34 |
| 5.1 By operating continuity | ||
| 5.1.1 Net profit from continuing operations (“-” for net loss) | -128,645,560.76 | 541,648,977.34 |
| 5.1.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5.2 By ownership | ||
| 5.2.1 Net profit attributable to owners of the Company as the parent | -126,378,339.68 | 615,363,686.82 |
| 5.2.1 Net profit attributable to non-controlling interests | -2,267,221.08 | -73,714,709.48 |
| 6. Other comprehensive income, net of tax | -891,213.66 | -46,863,350.96 |
| Attributable to owners of the Company as the parent | 244,470.51 | -44,798,700.49 |
| 6.1 Items that will not be reclassified to profit or loss | ||
| 6.1.1 Changes caused by remeasurements on defined benefit schemes | ||
| 6.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method | ||
| 6.1.3 Changes in the fair value of investments in other equity instruments | ||
| 6.1.4 Changes in the fair value arising from changes in own credit risk | ||
| 6.1.5 Other | ||
| 6.2 Items that will be reclassified to profit or loss | 244,470.51 | -44,798,700.49 |
| 6.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | 1,486,086.18 | |
| 6.2.2 Changes in the fair value of other debt |
| investments | ||
| 6.2.3 Other comprehensive income arising from the reclassification of financial assets | ||
| 6.2.4 Credit impairment allowance for other debt investments | ||
| 6.2.5 Reserve for cash flow hedges | ||
| 6.2.6 Differences arising from the translation of foreign currency-denominated financial statements | -1,241,615.67 | -44,798,700.49 |
| 6.2.7 Other | ||
| Attributable to non-controlling interests | -1,135,684.17 | -2,064,650.47 |
| 7. Total comprehensive income | -129,536,774.42 | 494,785,626.38 |
| Attributable to owners of the Company as the parent | -126,133,869.17 | 570,564,986.33 |
| Attributable to non-controlling interests | -3,402,905.25 | -75,779,359.95 |
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | -0.0525 | 0.2556 |
| 8.2 Diluted earnings per share | -0.0525 | 0.2556 |
Legal representative: Zhou Bin CFO: Li Chunlei Head of the financial department: Guo Zhihua
3. Consolidated Cash Flow Statement for Q1~Q3
Unit: RMB
| Item | Q1~Q3 2021 | Q1~Q3 2020 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 30,451,464,764.24 | 29,184,784,329.28 |
| Net increase in customer deposits and deposits from other banks and financial institutions | ||
| Net increase in borrowings from the central bank | ||
| Net increase in loans from other financial institutions | ||
| Premiums received on original insurance contracts | ||
| Net proceeds from reinsurance | ||
| Net increase in deposits and investments of policy holders | ||
| Interest, fees and commissions received | ||
| Net increase in loans from other banks and financial institutions | ||
| Net increase in proceeds from repurchase transactions | ||
| Net proceeds from acting trading of securities | ||
| Tax and levy rebates | 333,893,980.47 | 158,747,704.56 |
| Cash generated from other operating activities | 1,172,860,994.12 | 2,779,748,792.23 |
| Subtotal of cash generated from operating activities | 31,958,219,738.83 | 32,123,280,826.07 |
| Payments for commodities and services | 29,601,035,244.82 | 28,608,102,086.75 |
| Net increase in loans and advances to customers | ||
| Net increase in deposits in the central bank and other banks and financial institutions | ||
| Payments for claims on original insurance contracts | ||
| Net increase in loans to other banks and financial institutions | ||
| Interest, fees and commissions paid | ||
| Policy dividends paid | ||
| Cash paid to and for employees | 1,511,165,362.18 | 1,359,110,793.58 |
| Taxes and levies paid | 710,317,427.85 | 785,311,074.53 |
| Cash used in other operating activities | 1,577,936,087.07 | 2,546,630,231.54 |
| Subtotal of cash used in operating activities | 33,400,454,121.92 | 33,299,154,186.40 |
| Net cash generated from/used in operating activities | -1,442,234,383.09 | -1,175,873,360.33 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 343,726,934.95 | 695,562,072.60 |
| Return on investment | 92,533,320.06 | 97,902,372.90 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 234,447,891.30 | 305,251,144.96 |
| Net proceeds from the disposal of subsidiaries and other business units | 133,143,680.12 | 588,620,437.06 |
| Cash generated from other investing activities | 1,096,314,874.18 | 2,057,357,513.79 |
| Subtotal of cash generated from investing activities | 1,900,166,700.61 | 3,744,693,541.31 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 3,121,184,726.92 | 2,417,483,605.63 |
| Payments for investments | 397,009,568.49 | 162,157,119.25 |
| Net increase in pledged loans granted | ||
| Net payments for the acquisition of subsidiaries and other business units | 96,500,200.00 | |
| Cash used in other investing activities | 339,063,661.31 | 155,520,775.46 |
| Subtotal of cash used in investing activities | 3,953,758,156.72 | 2,735,161,500.34 |
| Net cash generated from/used in investing activities | -2,053,591,456.11 | 1,009,532,040.97 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | 101,867,396.60 | 133,039,439.25 |
| Including: Capital contributions by non-controlling interests to subsidiaries | 101,867,396.60 | 133,039,439.25 |
| Borrowings received | 17,581,759,690.86 | 14,453,038,928.17 |
| Cash generated from other financing activities | 806,757,381.62 | 1,396,812,658.86 |
| Subtotal of cash generated from financing activities | 18,490,384,469.08 | 15,982,891,026.28 |
| Repayment of borrowings | 11,785,342,761.93 | 13,243,185,186.02 |
| Interest and dividends paid | 812,169,473.64 | 745,791,874.18 |
| Including: Dividends paid by subsidiaries to non-controlling interests | 7,497,000.00 | 4,513,500.00 |
| Cash used in other financing activities | 680,675,618.15 | 1,347,499,266.63 |
| Subtotal of cash used in financing activities | 13,278,187,853.72 | 15,336,476,326.83 |
| Net cash generated from/used in financing activities | 5,212,196,615.36 | 646,414,699.45 |
| 4. Effect of foreign exchange rates changes on cash and cash equivalents | -5,440,009.98 | -22,135,152.50 |
| 5. Net increase in cash and cash equivalents | 1,710,930,766.18 | 457,938,227.59 |
| Add: Cash and cash equivalents, beginning of the period | 4,298,056,113.24 | 4,493,701,917.22 |
| 6. Cash and cash equivalents, end of the period | 6,008,986,879.42 | 4,951,640,144.81 |
(II) Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year (2021)of the New Accounting Standards Governing Leases
√ Applicable □ Not applicable
Whether items of the balance sheet at the beginning of the year need adjustments
√ Yes □ No
Consolidated balance sheet
Unit: RMB
| Item | 31 December 2020 | 1 January 2021 | Adjustment |
| Current assets: | |||
| Monetary assets | 5,431,530,180.90 | 5,431,530,180.90 |
| Settlement reserve | |||
| Loans to other banks and financial institutions | |||
| Held-for-trading financial assets | 618,249,541.66 | 618,249,541.66 | |
| Derivative financial assets | |||
| Notes receivable | 2,358,180,193.96 | 2,358,180,193.96 | |
| Accounts receivable | 3,900,897,623.59 | 3,900,897,623.59 | |
| Receivables financing | 84,057,197.44 | 84,057,197.44 | |
| Prepayments | 1,183,270,543.41 | 1,182,471,715.24 | -798,828.17 |
| Premiums receivable | |||
| Reinsurance receivables | |||
| Receivable reinsurance contract reserve | |||
| Other receivables | 2,145,736,640.60 | 2,145,209,803.70 | -526,836.90 |
| Including: Interest receivable | 45,109,425.85 | 45,109,425.85 | |
| Dividends receivable | 4,947,848.62 | 4,947,848.62 | |
| Financial assets purchased under resale agreements | |||
| Inventories | 4,521,300,677.41 | 4,521,300,677.41 | |
| Contract assets | 2,870,006,710.39 | 2,870,006,710.39 | |
| Assets held for sale | |||
| Current portion of non-current assets | 112,310,158.82 | 112,310,158.82 | |
| Other current assets | 1,913,146,483.39 | 1,913,146,483.39 | |
| Total current assets | 25,138,685,951.57 | 25,137,360,286.50 | -1,325,665.07 |
| Non-current assets: | |||
| Loans and advances to customers | |||
| Debt investments | |||
| Other debt investments | |||
| Long-term receivables | 399,497,204.03 | 399,497,204.03 | |
| Long-term equity investments | 4,375,833,584.65 | 4,375,833,584.65 | |
| Investments in other equity instruments | 25,343,293.16 | 25,343,293.16 | |
| Other non-current financial assets | 1,878,154,796.76 | 1,878,154,796.76 | |
| Investment property | 538,585,668.29 | 538,585,668.29 | |
| Fixed assets | 3,178,642,017.84 | 3,178,642,017.84 | |
| Construction in progress | 9,236,643,931.68 | 9,236,643,931.68 | |
| Productive living assets | |||
| Oil and gas assets | |||
| Right-of-use assets | 103,838,847.54 | 103,838,847.54 | |
| Intangible assets | 1,189,191,001.51 | 1,189,191,001.51 | |
| Development costs | |||
| Goodwill | 675,795,873.17 | 675,795,873.17 | |
| Long-term prepaid expense | 153,198,562.82 | 153,198,562.82 | |
| Deferred income tax assets | 1,265,916,437.39 | 1,265,916,437.39 | |
| Other non-current assets | 1,820,779,170.74 | 1,820,779,170.74 | |
| Total non-current assets | 24,737,581,542.04 | 24,841,420,389.58 | 103,838,847.54 |
| Total assets | 49,876,267,493.61 | 49,978,780,676.08 | 102,513,182.47 |
| Current liabilities: | |||
| Short-term borrowings | 10,990,550,475.78 | 10,990,550,475.78 | |
| Borrowings from the central bank |
| Loans from other banks and financial institutions | |||
| Held-for-trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | 1,335,987,026.21 | 1,335,987,026.21 | |
| Accounts payable | 9,632,366,325.76 | 9,632,366,325.76 | |
| Advances from customers | |||
| Contract liabilities | 1,217,367,735.94 | 1,217,367,735.94 | |
| Financial assets sold under repurchase agreements | |||
| Customer deposits and deposits from other banks and financial institutions | |||
| Payables for acting trading of securities | |||
| Payables for underwriting of securities | |||
| Employee benefits payable | 476,616,244.45 | 476,616,244.45 | |
| Taxes and levies payable | 508,214,059.16 | 508,214,059.16 | |
| Other payables | 1,999,430,899.69 | 1,991,555,887.10 | -7,875,012.59 |
| Including: Interest payable | 220,837,380.17 | 220,837,380.17 | |
| Dividends payable | |||
| Fees and commissions payable | |||
| Reinsurance payables | |||
| Liabilities directly associated with assets held for sale | |||
| Current portion of non-current liabilities | 376,896,566.29 | 425,552,664.43 | 48,656,098.14 |
| Other current liabilities | 441,774,317.23 | 441,774,317.23 | |
| Total current liabilities | 26,979,203,650.51 | 27,019,984,736.06 | 40,781,085.55 |
| Non-current liabilities: | |||
| Insurance contract reserve | |||
| Long-term borrowings | 5,964,748,997.54 | 5,964,748,997.54 | |
| Bonds payable | 4,993,212,788.32 | 4,993,212,788.32 | |
| Including: Preference shares | |||
| Perpetual bonds | |||
| Lease liabilities | 61,732,096.92 | 61,732,096.92 | |
| Long-term payables | 481,409,849.96 | 481,409,849.96 | |
| Long-term employee benefits payable | 5,248,309.14 | 5,248,309.14 | |
| Provisions | 102,353,567.91 | 102,353,567.91 | |
| Deferred income | 446,900,524.64 | 446,900,524.64 | |
| Deferred income tax liabilities | 75,819,231.93 | 75,819,231.93 | |
| Other non-current liabilities | 106,475,449.02 | 106,475,449.02 | |
| Total non-current liabilities | 12,176,168,718.46 | 12,237,900,815.38 | 61,732,096.92 |
| Total liabilities | 39,155,372,368.97 | 39,257,885,551.44 | 102,513,182.47 |
| Owners’ equity: | |||
| Share capital | 2,407,945,408.00 | 2,407,945,408.00 | |
| Other equity instruments | |||
| Including: Preference shares | |||
| Perpetual bonds | |||
| Capital reserves | 230,185,310.09 | 230,185,310.09 | |
| Less: Treasury stock | |||
| Other comprehensive income | -16,583,042.42 | -16,583,042.42 |
| Specific reserve | |||
| Surplus reserves | 1,211,721,109.67 | 1,211,721,109.67 | |
| General reserve | |||
| Retained earnings | 4,595,371,391.63 | 4,595,371,391.63 | |
| Total equity attributable to owners of the Company as the parent | 8,428,640,176.97 | 8,428,640,176.97 | |
| Non-controlling interests | 2,292,254,947.67 | 2,292,254,947.67 | |
| Total owners’ equity | 10,720,895,124.64 | 10,720,895,124.64 | |
| Total liabilities and owners’ equity | 49,876,267,493.61 | 49,978,780,676.08 | 102,513,182.47 |
Notes for adjustmentThe Ministry of Finance issued the revised "Accounting Standards for Business Enterprises No.21-Leases"(Cai Kuai [2018]No.35) in 2018, and the Company implemented it since 1 January 2021.According to the new standards governing leases, enterprises implementing this standard for the firsttime should adjust the amount of retained earnings and other related items in the financial statementsat the beginning of the year when the standard is first implemented based on the cumulative impact ofthe first implementation of the standard, and no adjustment is made to the information for thecomparable period.
2. Retrospective Adjustments to the Comparative Data of Prior Periods due to the FirstExecution in 2021 of the New Accounting Standards Governing Leases
√ Applicable □ Not applicable
The Ministry of Finance issued the revised "Accounting Standards for Business Enterprises No.21-Leases"(Cai Kuai [2018]No.35) in 2018, and the Company implemented it since 1 January 2021.According to the new standards governing leases, enterprises implementing this standard for the firsttime should adjust the amount of retained earnings and other related items in the financial statementsat the beginning of the year when the standard is first implemented based on the cumulative impact ofthe first implementation of the standard, and no adjustment is made to the information for thecomparable period.(III) Independent Auditor’s ReportIndicate by tick mark whether the financial statements above have been audited by an independentauditor.
□Yes √ No
These financial statements have not been audited by such an auditor.
The Board of DirectorsKonka Group Co., Ltd27 October 2021