(Summary)
Stock Code: 000016, 200016 Stock Name: Konka Group-A, Konka Group-B Announcement No. 2024-41Bond Code: 149987, 133306 Bond Name: 22 Konka 01, 22 Konka 03133333, 133759 22 Konka 05, 24 Konka 01133782, 133783 24 Konka 02, 24 Konka 03
KONKA GROUP CO., LTD.INTERIM REPORT 2024 (SUMMARY)
Part I Important NotesThis Summary is based on the full Interim Report. In order for a full understanding of the operatingresults, financial condition and future development planning of the Company, investors are kindlyreminded to read the full text carefully on the media designated by the China Securities RegulatoryCommission (the “CSRC”).All the Company’s directors have attended the Board meeting for the review of this Report and itssummary.Independent auditor’s modified opinion:
□ Applicable √ Not applicable
Board-approved interim cash and/or stock dividend plan for ordinary shareholders:
□ Applicable √ Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.Board-approved interim cash and/or stock dividend plan for preferred shareholders:
□ Applicable √ Not applicable
This Report and its summary have been prepared in both Chinese and English. Should there be anydiscrepancies or misunderstandings between the two versions, the Chinese versions shall prevail.Part II Key Corporate Information
1. Stock Profile
| Stock name | Konka Group-A, Konka Group-B | Stock code | 000016, 200016 | |
| Stock exchange for stock listing | Shenzhen Stock Exchange | |||
| Changed stock name (if any) | N/A | |||
| Contact information | Board Secretary | Securities Representative | ||
| Name | Li Chunlei | Miao Leiqiang | ||
| Office address | Board Secretariat, 24/F, Konka R&D Center, 28 Keji South Twelfth Road, Science and | Board Secretariat, 24/F, Konka R&D Center, 28 Keji South Twelfth Road, Science and | ||
(Summary)
| Technology Park, Yuehai Street, Nanshan District, Shenzhen, Guangdong Province, China | Technology Park, Yuehai Street, Nanshan District, Shenzhen, Guangdong Province, China | |
| Tel. | 0755-26609138 | 0755-26609138 |
| E-mail address | szkonka@konka.com | szkonka@konka.com |
2. Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
| H1 2024 | H1 2023 | Change (%) | |
| Operating revenue (RMB) | 5,412,530,372.47 | 10,472,061,171.94 | -48.31% |
| Net profit attributable to the listed company’s shareholders (RMB) | -1,087,581,842.55 | -193,240,232.33 | -462.81% |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) | -1,103,078,610.72 | -891,594,370.41 | -23.72% |
| Net cash generated from/used in operating activities (RMB) | -439,338,365.13 | -201,550,105.24 | -117.98% |
| Basic earnings per share (RMB/share) | -0.4517 | -0.0803 | -462.52% |
| Diluted earnings per share (RMB/share) | -0.4517 | -0.0803 | -462.52% |
| Weighted average return on equity (%) | -21.33% | -2.55% | -18.78% |
| 30 June 2024 | 31 December 2023 | Change (%) | |
| Total assets (RMB) | 34,324,017,267.75 | 35,824,818,212.66 | -4.19% |
| Equity attributable to the listed company’s shareholders (RMB) | 4,553,306,674.94 | 5,644,401,184.65 | -19.33% |
3. Shareholders and Their Holdings as at the End of the Reporting Period
Unit: share
| Number of ordinary shareholders | 84,245 | Number of preferred shareholders with resumed voting rights (if any) | 0 | ||||||
| Top 10 shareholders (exclusive of shares lent in refinancing) | |||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Number of shares | Restricted shares | Shares in pledge, marked 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 | |||||
| GUOYUAN SECURITIES BROKER (HK) CO., LTD. | Foreign legal person | 2.47% | 59,456,543 | 0 | |||||
| HOLY TIME GROUP LIMITED | Foreign legal person | 2.38% | 57,289,100 | 0 | |||||
| GAOLING FUND ,L.P. | Foreign legal person | 1.21% | 29,037,555 | 0 | |||||
(Summary)
| WANG JINGFENG | Domestic natural person | 1.06% | 25,625,800 | 0 | ||
| ZHANG SUFEN | Domestic natural person | 1.06% | 25,500,000 | 0 | ||
| NAM NGAI | Foreign natural person | 0.83% | 20,000,000 | 0 | ||
| CHINA MERCHANTS SECURITIES (HK) LIMITED | State-owned legal person | 0.82% | 19,837,520 | 0 | ||
| BOCOM INTERNATIONAL SECURITIES LIMITED | Foreign legal person | 0.78% | 18,896,037 | 0 | ||
| 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), 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 OCT Group 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. | |||||
| Shareholders conducting margin trading (if any) | Wang Jingfeng holds 25,500,000 A-shares in the Company through his securities account for customer credit trading guarantee in Guotai Junan Securities Co., Ltd. | |||||
5% or greater shareholders, top 10 shareholders and Top 10 unrestricted shareholders involved inrefinancing shares lending
□ Applicable √ Not applicable
Changes in top 10 shareholders and top 10 unrestricted shareholders due to refinancing shareslending/return compared with the prior period
□ Applicable √ Not applicable
4. Change of Controlling Shareholder or Actual Controller in Reporting PeriodChange of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
The controlling shareholder remained the same in the Reporting Period.Change of the actual controller in the Reporting Period:
□ Applicable √ Not applicable
The actual controller remained the same in the Reporting Period.
5. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
No preferred shareholders in the Reporting Period.
(Summary)
6. Outstanding Bonds at the Date when this Report Was Authorized for Issue
√ Applicable □ Not applicable
(1) Basic Information of Bonds
| Name | Abbr. | Code | Issue date | Due date | Bonds balance (RMB’0,000) | Coupon rate |
| Corporate bonds publicly offered to professional investors in 2022 of Konka Group Co., Ltd. (Tranche I) (Variety I) | 22 Konka 01 | 149987 | 14 July 2022 | 14 July 2025 | 120,000 | 3.23% |
| Privately placed corporate bonds to professional investors in 2022 of Konka Group Co., Ltd (Tranche I) (Variety I) | 22 Konka 03 | 133306 | 8 September 2022 | 8 September 2025 | 60,000 | 3.30% |
| Privately placed corporate bonds to professional investors in 2022 of Konka Group Co., Ltd (Tranche II) | 22 Konka 05 | 133333 | 18 October 2022 | 18 October 2025 | 60,000 | 3.50% |
| Privately placed corporate bonds to professional investors in 2024 of Konka Group Co., Ltd (Tranche I) | 24 Konka 01 | 133759 | 29 January 2024 | 29 January 2027 | 150,000 | 4.00% |
| Privately placed corporate bonds to professional investors in 2024 of Konka Group Co., Ltd (Tranche II) (Variety I) | 24 Konka 02 | 133782 | 18 March 2024 | 18 March 2027 | 40,000 | 4.00% |
| Privately placed corporate bonds to professional investors in 2024 of Konka Group Co., Ltd (Tranche II) (Variety II) | 24 Konka 03 | 133783 | 18 March 2024 | 18 March 2027 | 40,000 | 4.03% |
(2) Financial Indicators as at the End of the Reporting Period
Unit: RMB’0,000
| Item | 30 June 2024 | 31 December 2023 |
| Debt/asset ratio | 86.45% | 83.51% |
| Item | H1 2024 | H1 2023 |
| EBITDA-to-interest cover (times) | -2.34 | 0.89 |
Part III Significant EventsDuring the Reporting Period, the Company followed the new development strategy of "One Axis,Two Wheels and Three Growth Drivers," and adhered to long-term value-oriented principles as wellas the operational strategy of focusing on the long term and improving specialization to becomestronger. It also deepened integration for specialization and implemented lean management topromote high-quality development. During the Reporting Period, the Company promoted businessrestructuring by optimizing some business lines which did not produce a good synergic effect withthe main business and had a low gross margin. As a result, the Company's operating revenuedeclined year on year. Affected by the following factors, the Company's net profit attributable to itsshareholders for the first half of 2024 was negative:
(Summary)
1. In the first half of 2024, the Company actively adjusted its sales strategy for its domestic colorTV business and optimized the product structure. Despite the year-over-year increase in the revenueand gross profit and the gradual improvement of the operations, the Company's color TV businessstill suffered a deficit due to the limited room for reduction of necessary expenses and thecontinuously intensifying competition in the industry.
2. In the first half of 2024, due to the changes in the prices of the trading financial assets held by theCompany, the Company's net loss on changes in fair value was approximately RMB-175 million,which affected the net profit attributable to its shareholders.
3. In the first half of 2024, based on the principle of prudence, the Company set aside provisions forasset impairment of approximately RMB255 million in accordance with accounting policies andestimates, resulting in a decrease in profit.
4. In the first half of 2024, the Company's semiconductor business was still at the initial phase ofindustrialization. In spite of the heavy investment, efficient large-scale production had not beenachieved, which affected the Company's overall operating profit.
5. The Company focused on two lines of business, "consumer electronics + semiconductor", and,with the industrial development needs taken into account, strategically reduced the investmentintensity, hence a year-on-year decline in related income.
The Board of DirectorsKonka Group Co., Ltd.31 August 2024