Konka Group Co., Ltd. Annual Report 2023




KONKA GROUP CO., LTD.

ANNUAL REPORT 2023


2024-18




April 2024




1
Konka Group Co., Ltd. Annual Report 2023



Part I Important Notes, Table of Contents and Definitions

The Board of Directors (or the “Board” ), the Supervisory Committee as well as the directors,
supervisors and senior management of Konka Group Co., Ltd. (hereinafter referred to as the
“Company” ) hereby guarantee the factuality, accuracy and completeness of the contents of
this Report and its summary, and shall be jointly and severally liable for any
misrepresentations, misleading statements or material omissions therein.
Zhou Bin, the Company’s legal representative, Li Chunlei, the Company’s Chief Financial
Officer (CFO), and Ping Heng, the head of the Company’s financial department (equivalent to
financial manager) hereby guarantee that the Financial Statements carried in this Report are
factual, accurate and complete.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Any plans for the future or other forward-looking statements mentioned in this Report and its
summary shall NOT be considered as absolute promises of the Company to investors.
Therefore, investors are reminded to exercise caution when making investment decisions.
The Company has no final dividend plan, either in the form of cash or stock.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.




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Konka Group Co., Ltd. Annual Report 2023




Table of Contents




Part I Important Notes, Table of Contents and Definitions........................................................... 2

Part II Corporate Information and Key Financial Information................................................... 9

Part III Management Discussion and Analysis..............................................................................14

Part IV Corporate Governance.......................................................................................................38

Part V Environmental and Social Responsibility.......................................................................... 66

Part VI Significant Events............................................................................................................... 79

Part VII Share Changes and Shareholder Information..............................................................108

Part VIII Preferred Shares............................................................................................................ 115

Part IX Corporate Bonds...............................................................................................................116

Part X Financial Statements..........................................................................................................124




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Konka Group Co., Ltd. Annual Report 2023




Documents Available for Reference

1. The financial statements with the signatures and seals of the Company’s legal representative,
Chief Financial Officer and head of the financial department;
2. The original copy of the Independent Auditor’s Report with the seal of the CPA firm and the
signatures & seals of the certified public accountants;
3. The originals of all the Company’s documents and announcements disclosed to the public in the
Reporting Period;
4. This Report and its summary with the signature of the Company’s legal representative and the
seal of the Company; and
5. Other relevant materials.




4
Konka Group Co., Ltd. Annual Report 2023



Definitions

Term Definition
The “Company”, the “Group”, “Konka Group” or Konka Group Co., Ltd. and its consolidated subsidiaries, except where the
“we” context otherwise requires
Electronics Technology Shenzhen Konka Electronics Technology Co., Ltd.
Anhui Zhilian Anhui Konka Zhilian E-Commerce Co., Ltd.
Haimen Konka Nantong Haimen Konka Smart Technology Co., Ltd.
Chengdu Konka Smart Chengdu Konka Smart Technology Co., Ltd.
Chengdu Konka Electronic Chengdu Konka Electronic Co., Ltd.
Nantong Hongdin Nantong Hongdin Smart Technology Co., Ltd.
Shenzhen Kangcheng Shenzhen Kangcheng Technology Innovation and Development Co., Ltd.
Xiaojia Technology Xiaojia Technology Co., Ltd.
Liaoyang Kangshun Smart Liaoyang Kangshun Smart Technology Co., Ltd.
Liaoyang Kangshun Renewable Liaoyang Kangshun Renewable Resources Co., Ltd.
Nanjing Konka Nanjing Konka Electronics Co., Ltd.
Chuzhou Konka Chuzhou Konka Precision Intelligent Manufacturing Technology Co., Ltd.
XingDa HongYe GuangDong XingDa HongYe Electronic Co., Ltd.
Konka Circuit Shenzhen Konka Circuit Co., Ltd.
Konka Flexible Electronic Suining Konka Flexible Electronic Technology Co., Ltd.
Konka Hongye Electronics Suining Konka Hongye Electronics Co., Ltd.
Boluo Precision Boluo Konka Precision Technology Co., Ltd.
Boluo Konka Boluo Konka PCB Co., Ltd.
Anhui Tong giường Anhui Konka Tong giường Electrical Appliances Co., Ltd.
Jiangsu Konka Smart Jiangsu Konka Smart Electrical Appliances Co., Ltd.
Anhui Electrical Appliance Anhui Konka Electrical Appliance Technology Co., Ltd.
Frestec Refrigeration Henan Frestec Refrigeration Appliance Co., Ltd.
Frestec Electrical Appliances Henan Frestec Electrical Appliances Co., Ltd.
Frestec Household Appliances Henan Frestec Household Appliances Co., Ltd.
Frestec Smart Home Henan Frestec Smart Home Technology Co., Ltd.
Konka Investment Shenzhen Konka Investment Holdings Co., Ltd.
Yibin Konka Technology Park Yibin Konka Technology Park Operation Co., Ltd.
Konka Capital Shenzhen Konka Capital Equity Investment Management Co., Ltd.
Konka Suiyong Konka Suiyong Investment (Shenzhen) Co., Ltd.
Sheng xing Industrial Shenzhen Konka Sheng xing Industrial Co., Ltd.
Zhitong Technology Shenzhen Konka Zhitong Technology Co., Ltd.
Konka Electronic Material Konka Electronic Material Technology (Shenzhen) Co., Ltd.
Beijing Konka Electronic Beijing Konka Electronic Co., Ltd.
Tianjin Konka Tianjin Konka Technology Co., Ltd.
Suining Konka Industrial Park Suining Konka Industrial Park Development Co., Ltd.
Suining Electronic Technological Innovation Suining Konka Electronic Technological Innovation Co., Ltd.
Shanghai Konka Shanghai Konka Industrial Co., Ltd.
Yantai Kangjin Yantai Kangjin Technology Development Co., Ltd.
Mobile Interconnection Shenzhen Konka Mobile Interconnection Technology Co., Ltd.
Sichuan Konka Sichuan Konka Smart Terminal Technology Co., Ltd

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Konka Group Co., Ltd. Annual Report 2023

Yibin Smart Yibin Konka Smart Technology Co., Ltd.
Shenzhen KONSEMI Shenzhen KONSEMI Co., Ltd.
Chongqing Konka Chongqing Konka Technology Development Co., Ltd.
Kowin Memory (Shenzhen) Kowin Memory Technology (Shenzhen) Co., Limited
Kowin Memory (Hong Kong) Kowin Memory Technology (Hong Kong) Co., Limited
Konka Xinyun Semiconductor Konka Xinyun Semiconductor Technology (Yancheng) Co., Ltd.
Konka Cross-border (Hebei) Konka Cross-border (Hebei) Technology Development Co., Ltd.
Shenzhen Nianhua Shenzhen Nianhua Enterprise Management Co., Ltd.
Konka Huazhong Konka Huazhong (Hunan) Technology Co., Ltd.
Wankaida Shenzhen Wankaida Science and Technology Co., Ltd.
Shenzhen Chuangzhi Electrical Appliances Shenzhen Konka Chuangzhi Electrical Appliances Co., Ltd.
Suining Jiarun Property Suining Jiarun Property Co., Ltd.
Anhui Konka Anhui Konka Electronic Co., Ltd.
Kangzhi Trade Anhui Kangzhi Trade Co., Ltd.
Telecommunication Technology Shenzhen Konka Telecommunications Technology Co., Ltd.
Konka Mobility Konka Mobility Co., Limited
Dongguan Konka Dongguan Konka Electronic Co., Ltd.
Suining Konka Smart Suining Konka Smart Technology Co., Ltd.
Chongqing Optoelectronic Technology Chongqing Konka Optoelectronic Technology Co., Ltd.
Yibin Kangrun Yibin Kangrun Environmental Technology Co., Ltd.
Yibin Kangrun Medical Yibin Kangrun Medical Waste Centralized Treatment Co., Ltd.
Yibin Kangrun Environmental Protection Yibin Kangrun Environmental Protection Power Generation Co., Ltd.
Ningbo Khr Electric Appliance Ningbo Khr Electric Appliance Co., Ltd.
Jiangxi Konka Jiangxi Konka New Material Technology Co., Ltd.
Jiangxi High Transparent Substrate Jiangxi High Transparent Substrate Material Technology Co., Ltd.
Jiangsu Konka Special Material Jiangsu Konka Special Material Technology Co., Ltd.
Xinfeng Microcrystalline Jiangxi Xinfeng Microcrystalline Jade Co., Ltd.
Konka Huanjia Konka Huanjia Environmental Technology Co., Ltd.
Konka Huanjia (Henan) Konka Huanjia (Henan) Environmental Technology Co., Ltd.
Shanxi Konka Intelligent Shanxi Konka Intelligent Appliance Co., Ltd.
Pengrun Technology Shenzhen Konka Pengrun Technology & Industry Co., Ltd.
Jiaxin Technology Jiaxin Technology Co., Ltd.
Konka Ronghe Konka Ronghe Industrial Technology (Zhe gian g) Co., Ltd.
Chongqing Kang xing rui Chongqing Kang xing rui Environmental Technology Co., Ltd.
Konka Unifortune Shenzhen Konka Unifortune Technology Co., Ltd.
Jiali International Jiali International (Hong Kong) Limited
Kangjiatong Sichuan Kangjiatong Technology Co., Ltd.
Kanghong (Yantai) Environmental Kanghong (Yantai) Environmental Technology Co., Ltd.
Jiangkang (Shanghai) Technology Jiangkang (Shanghai) Technology Co., Ltd.
Konka Intelligent Manufacturing Shenzhen Konka Intelligent Manufacturing Technology Co., Ltd.
Hainan Konka Technology Hainan Konka Technology Co., Ltd.
Konka Ventures Konka Ventures Development (Shenzhen) Co., Ltd.
Yibin Konka Incubator Yibin Konka Incubator Management Co., Ltd.
Yantai Konka Yantai Konka Healthcare Enterprise Service Co., Ltd.
Chengdu Anren Chengdu Anren Konka Cultural and Creative Incubator Management Co., Ltd.
Konka Enterprise Service Guiyang Konka Enterprise Service Co., Ltd.


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Konka Group Co., Ltd. Annual Report 2023

Konka Eco-Development Shenzhen Konka Eco-Development Investment Co., Ltd.
Konka Europe Konka (Europe) Co., Ltd.
Hong Kong Konka Hong Kong Konka Limited
Hongdin Trading Hongdin International Trading Limited
Konka North America Konka North America LLC
Kanghao Technology Kanghao Technology Co., Ltd.
Hongdin Invest Hongdin Invest Development Limited
Chain Kingdom Memory Technologies Chain Kingdom Memory Technologies Co., Limited
Chain Kingdom Semiconductor (Shao xing ) Chain Kingdom Semiconductor (Shao xing ) Co., Ltd.
Hongjet Hongjet (Hong Kong) Company Limited
Chongqing Xinyuan Semiconductor Chongqing Xinyuan Semiconductor Co., Ltd.
Anlu Konka Anlu Konka Industry Operation Service Co. Ltd.
Kanghong Dongsheng Shenzhen Kanghong Dongsheng Investment Partnership (Limited Partnership)
Guizhou Konka New Material Technology Guizhou Konka New Material Technology Co., Ltd.
Guizhou Kanggui Energy Guizhou Kanggui Energy Co., Ltd.
Guangdong Xinwei Guangdong Xinwei Semiconductor Co., Ltd.
Guizhou Kanggui Material Technology Guizhou Kanggui Material Technology Co., Ltd.
Nantong Kanghai Nantong Kanghai Technology Industry Development Co., Ltd.
Chongqing Kangyiyun Chongqing Kangyiyun Business Operation Management Co., Ltd.
Jiangxi Konka High-tech Park Jiangxi Konka High-tech Park Operation and Management Co., Ltd.
Shangrao Konka Electronic Technology
Shangrao Konka Electronic Technology Innovation Co., Ltd.
Innovation
Guizhou Konka New Energy Guizhou Konka New Energy Material Technology Co., Ltd.
Zhe gian g Konka Electronic Zhe gian g Konka Electronics Co., Ltd.
Zhe gian g Konka Technology Industry Zhe gian g Konka Technology Industry Development Co., Ltd.
Sichuan Hongxinchen Sichuan Hongxinchen Real Estate Development Co., Ltd.

Xi'an Konka Intelligent Xi'an Konka Intelligent Appliance Co., Ltd.

Xi'an Konka Network Xi'an Konka Network Technology Co., Ltd.

Xi'an Kanghong Technology Industry Xi'an Kanghong Technology Industry Development Co., Ltd.

Xi'an Konka Intelligent Technology Xi'an Konka Intelligent Technology Development Co., Ltd.

Anhui Konka Low Carbon Anhui Konka Low Carbon Technology Co., Ltd.

Kanghong Xintong Shenzhen Kanghong Xintong Investment Partnership (Limited Partnership)

Songyang Industry Operation Songyang Konka Smart Industry Operation Management Co., Ltd.

Kangyan Technology Shenzhen Kangyan Technology Co., Ltd.

Konka Photovoltaic Technology Konka Photovoltaic Technology Co., Ltd.

Songyang Konka Intelligent Songyang Konka Intelligent Technology Development Co., Ltd.

Konka North China Konka North China (Tianjin) Technology Co., Ltd.

Zhongshan Kanghong Zhongshan Kanghong Electronic Technology Co., Ltd.

Digital Technology Shenzhen Konka Digital Technology Development Co., Ltd.

Chongqing Kang xing rui Automobile Recycling Chongqing Kang xing rui Scraped Automobile Recycling Co., Ltd.

Kang xing rui Renewable Resources Chongqing Kang xing rui Renewable Resources Co., Ltd.

Chongqing Fangbing Real Estate Chongqing Fangbing Real Estate Co., Ltd.


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Konka Group Co., Ltd. Annual Report 2023

CSRC The China Securities Regulatory Commission
SZSE The Shenzhen Stock Exchange
CSRC Shenzhen The Shenzhen Bureau of the China Securities Regulatory Commission
Expressed in the Chinese currency of RMB, expressed in tens of thousands of
RMB, RMB’0,000, RMB’00,000,000
RMB, expressed in hundreds of millions of RMB




8
Konka Group Co., Ltd. Annual Report 2023



Part II Corporate Information and Key Financial Information

I Corporate Information
Stock name Konka Group-A, Konka Group-B Stock code 000016, 200016
Previous stock name (if any) N/A
Stock exchange for stock listing Shenzhen Stock Exchange
Company name in Chinese khang giai tập đoàn cổ phần công ty hữu hạn 
Abbr. Khang giai tập đoàn 
Company name in English (if any) KONKA GROUP CO.,LTD
Abbr. (if any) KONKA GROUP
Legal representative Zhou Bin
15-24/F, Konka R&D Center, 28 Keji South Twelfth Road, Science and Technology Park,
Registered address
Yuehai Street, Nanshan District, Shenzhen, Guangdong Province, China
Zip code 518057
On 1 July 2015, due to the relocation of the Company Headquarters, the registered
address has changed from OCT, Nanshan District, Shenzhen, Guangdong Province, China
Past changes of registered address
to 15-24/F, Konka R&D Center, 28 Keji South Twelfth Road, Science and Technology
Park, Yuehai Street, Nanshan District, Shenzhen, Guangdong Province, China.
15-24/F, Konka R&D Center, 28 Keji South Twelfth Road, Science and Technology Park,
Office address
Yuehai Street, Nanshan District, Shenzhen, Guangdong Province, China
Zip code 518057
Company website konka 
Email address szkonka@konka 

II Contact Information
Board Secretary Securities Representative
Name Wu Yongjun Miao Leiqiang
Board Secretariat, 24/F, Konka R&D Center, 28 Board Secretariat, 24/F, Konka R&D Center, 28
Keji South Twelfth Road, Science and Technology Keji South Twelfth Road, Science and Technology
Address
Park, Yuehai Street, Nanshan District, Shenzhen, Park, Yuehai Street, Nanshan District, Shenzhen,
Guangdong Province, China Guangdong Province, China
Tel. 0755-26609138 0755-26609138
Fax 0755-26601139 0755-26601139
Email address szkonka@konka szkonka@konka 

III Media for Information Disclosure and Place where this Report Is Lodged
Stock exchange website where this
Securities Times, etc.
Report is disclosed
Media and website where this Report is
http:// cninfo.cn/new/index
disclosed
Board Secretariat, 24/F, Konka R&D Center, 28 Keji South Twelfth Road, Science
Place where this Report is lodged and Technology Park, Yuehai Street, Nanshan District, Shenzhen, Guangdong
Province, China

IV Change to Company Registered Information
Unified social credit code 914403006188155783
Change to principal activity of the Company
No change
since going public (if any)
Every change of controlling shareholder since
No change
incorporation (if any)


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Konka Group Co., Ltd. Annual Report 2023


V Other Information

The independent audit firm hired by the Company:
Name Shinewing Certified Public Accountants LLP
9/F, Block A, Fuhua Mansion, No.8 Chaoyangmen North Street, Dongcheng District,
Office address
Beijing, China
Accountants writing signatures Tang Qimei and Liu Lihong

The independent sponsor hired by the Company to exercise constant supervision over the
Company in the Reporting Period:
□ Applicable √ Not applicable
The independent financial advisor hired by the Company to exercise constant supervision over the
Company in the Reporting Period:
□ Applicable √ Not applicable

VI Key Financial Information

Indicate by tick mark whether there is any retrospectively restated datum in the table below.
√ Yes □ No
Reason for retrospective restatement:
Change to accounting policies
2023-over-2022
2022 2021
2023 change (%)
Before Restated Restated Before Restated
Operating 17,849,331,429 29,607,854,255 29,607,854,2 49,106,513,669 49,106,513,669
-39.71%
revenue (RMB).24.27 55.27.58.58
Net profit
attributable to
- - -
the listed
2,163,790,053. 1,471,409,748. 1,470,466,80 -47.15% 905,352,997.68 905,470,314.84
company’s
17 21 6.68
shareholders
(RMB)
Net profit
attributable to
the listed
company’s - - - - -
shareholders 2,914,445,076. 2,665,550,383. 2,664,607,44 -9.38% 3,250,798,107. 3,250,680,790.
before 42 07 1.54 49 33
exceptional
gains and losses
(RMB)
Net cash
generated
-
from/used in -
553,101,277.90 528,303,041. 204.69% 808,756,394.11 808,756,394.11
operating 528,303,041.83
83
activities
(RMB)
Basic earnings
per share -0.8986 -0.6111 -0.6107 -47.14% 0.3760 0.3760
(RMB/share)
Diluted
-0.8986 -0.6111 -0.6107 -47.14% 0.3760 0.3760
earnings per

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Konka Group Co., Ltd. Annual Report 2023

share
(RMB/share)
Weighted
average return -32.58% -17.58% -17.57% -15.01% 10.33% 10.33%
on equity (%)
Change of 31
December 2023 over
31 December 31 December 2022 31 December 2021
31 December 2022
2023 (%)
Before Restated Restated Before Restated
Total assets 35,824,818,212 38,016,368,073 38,023,319,6 39,874,520, 39,882,535,977
-5.78%
(RMB).66.05 93.08 771.26.55
Equity
attributable to
the listed 5,644,401,184. 7,640,399,721. 7,641,459,98 9,095,278,4 9,095,395,753.
-26.13%
company’s 65 99 0.68 36.41 57
shareholders
(RMB)

Reason for change to accounting policies and correction of accounting errors:
On 30 November 2022, the Ministry of Finance issued Interpretation No. 16 for the Accounting
Standards for Business Enterprises, which stipulates the “accounting treatments for deferred
income taxes associated with assets and liabilities arising from a single transaction to which the
initial recognition exemption does not apply”, effective for the Company as of 1 January 2023.
For lease liabilities and right-of-use assets recognised at the beginning of the earliest period of
financial statement presentation in which the provision is first implemented that give rise to
taxable temporary differences and deductible temporary differences as a result of a single
transaction to which the provision applies, the Company has adjusted the cumulative effect to
retained earnings at the beginning of the earliest period of financial statement presentation and
other relevant financial statement items in accordance with the said provision and Accounting
Standard No. 18 for Business Enterprises—Income Tax.
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s
shareholders before and after exceptional gains and losses was negative for the last three
accounting years, and the latest independent auditor’s report indicated that there was uncertainty
about the Company’s ability to continue as a going concern.
□ Yes √ No
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s
shareholders before and after exceptional gains and losses was negative.
√ Yes □ No
Item 2023 2022 Note
Operating revenue (RMB) 17,849,331,429.24 29,607,854,255.27

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Konka Group Co., Ltd. Annual Report 2023

Scrap sales revenue, utilities revenue, lease
Deductions from operating
712,619,709.55 823,347,409.73 revenue, material sales revenue and other
revenue (RMB)
revenue irrelevant to the principal operations
Operating revenue net of
17,136,711,719.69 28,784,506,845.54
deductions (RMB)


VII Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards

1. Net Profit and Equity under CAS and IFRS

□ Applicable √ Not applicable
No difference for the Reporting Period.

2. Net Profit and Equity under CAS and Foreign Accounting Standards

□ Applicable √ Not applicable
No difference for the Reporting Period.

VIII Key Financial Information by Quarter

Unit: RMB

Q1 Q2 Q3 Q4
Operating revenue 4,600,647,851.61 5,871,413,320.33 4,404,631,998.81 2,972,638,258.49
Net profit attributable
to the listed company’s 152,513,923.41 -345,754,155.74 -521,630,694.97 -1,448,919,125.87
shareholders
Net profit attributable
to the listed company’s
shareholders before -521,453,718.40 -370,140,652.01 -486,155,733.41 -1,536,694,972.60
exceptional gains and
losses
Net cash generated
from/used in operating -1,182,725,927.02 981,175,821.78 -120,891,719.52 875,543,102.66
activities

Indicate by tick mark whether any of the quarterly financial data in the table above or their
summations differs materially from what have been disclosed in the Company’s quarterly or
interim reports.
□ Yes √ No
IX Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item 2023 2022 2021 Note
Gain or loss on disposal of non-current assets
(inclusive of impairment allowance write- 198,866,019.16 755,498,679.55 4,047,094,117.70
offs)
Government subsidies charged to current 264,798,178.16 916,334,616.72 1,352,377,548.16
12
Konka Group Co., Ltd. Annual Report 2023

profit or loss (exclusive of government
subsidies consistently given in the
Company’s ordinary course of business at
fixed quotas or amounts as per governmental
policies or standards)
Gain or loss on debt restructuring -5,378,929.04 19,777.25
Gain or loss on fair-value changes in
financial assets and liabilities held by a non-
financial enterprise, as well as on disposal of
-88,236,451.43 -17,595,638.89 67,789,442.65
financial assets and liabilities (exclusive of
the effective portion of hedges that arise in
the Company’s ordinary course of business)
Reversed portions of impairment allowances
for receivables which are tested individually 3,055,800.22 32,624,581.58
for impairment
Gain or loss on loan entrustments 118,808,006.95 119,233,091.33 80,625,356.41
Non-operating income and expense other
-64,433,346.64 -97,161,898.46 48,615,769.37
than the above
Other gains and losses that meet the
571,315,980.43 -1,907,936.23
definition of exceptional gain/loss
Less: Income tax effects 239,431,992.39 299,999,504.47 1,190,629,946.56
Non-controlling interests effects (net of
14,087,171.21 209,414,363.46 247,833,023.58
tax)
Total 750,655,023.25 1,194,140,634.86 4,156,151,105.17 --

Particulars about other gains and losses that meet the definition of exceptional gain/loss:
√ Applicable □ Not applicable
Amount involved
Item Reason
(RMB)
As the Company disposed of certain interests in subordinate joint stock company and
Chutian ceased to have significant influence on the joint stock company, the measurement of its
Dragon 574,780,174.75 investment was adjusted in the current period from a long-term equity investment (under
Co., Ltd. the equity method) to a held-for-trading financial asset, which incurred an exceptional
gain.

Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in
the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their
Securities to the Public—Exceptional Gain/Loss Items:
√ Applicable □ Not applicable
Amount involved
Item Reason
(RMB)
Tax rebates Government subsidies given in the Company’s ordinary course of business at fixed
5,819,853.78
on software quotas or amounts as per government’s uniform standards




13
Konka Group Co., Ltd. Annual Report 2023



Part III Management Discussion and Analysis

I Industry Overview for the Reporting Period
Currently, the Company's major businesses include consumer electronics, memory chip trading and
semiconductor businesses. The relevant industries are described below:
(I) Consumer electronics industry
In the color TV industry, recent years have seen China's market enter an era of stock adjustment.
According to statistics from All View Cloud (AVC), the retail volume of China's color TV market in
2023 was 31.42 million units, up 13.6% year on year, and the retail value was RMB109.8 billion,
down 2.3% year on year. With the continuous development of future display technologies
represented by Mini LED and Micro LED, as well as the intelligent upgrade of various electronic
products driven by the Internet of Things (IoT), big data, cloud computing, and artificial
intelligence, the development of new TV categories accelerated in 2023. The penetration rate of
new display technologies, high refresh rates, and large-size mid-to-high-end products has been
increasing. Regarding new display technologies, Mini LED technology entered a phase of rapid
popularization in 2023. AVC's data show that the retail penetration rate of China's color TV Mini
LED market was 9.8% in 2023, up 5.4% from 2022. In terms of high refresh rates, as living
standards continue to improve, consumers' pursuit of quality viewing and gaming experiences has
become increasingly high. Consequently, TVs with high refresh rates have seen a continuous rise in
sales due to their ability to provide superior image quality. AVC's statistics indicate that the retail
penetration rate of color TVs with refresh rates above 120Hz in China's market reached 31.9% in
2023, up 16.4% from 2022. Regarding large sizes, against the backdrop of consumer upgrades, the
trend of larger screen sizes in China's color TV market continues, with a steady increase in the sales
share of products 75 inches and above. AVC's statistics show that the retail penetration rate of 75-
inch products in China's color TV market was 19.9% in 2023, up 6.4% from 2022.
In terms of the white goods industry, the pace of product upgrades accelerated in 2023, with
enhancements in basic features and performance. Simultaneously, their products are more beautiful,
healthy and integrated. This structural upgrade in products has driven the growth in sales of high-
quality home appliances. Regarding refrigerators, according to AVC's statistics, in 2023, the
refrigerator market reported a retail sales value of RMB133.3 billion, up 7.0% year on year, with a
retail sales volume of 38.31 million units, up 1.5% year on year. The share of mid- to high-end
products continued to rise. For washing machines, AVC's statistics indicate that the retail sales in
the domestic market amounted to RMB93.4 billion in 2023, up 5.8% year on year, with a retail
volume of 40.05 million units, up 3.4% year on year. Aside from the rise in sales volume, the
average selling price of washing machines also saw a steady increase. Regarding air conditioners,

14
Konka Group Co., Ltd. Annual Report 2023


AVC's statistics show that China's domestic air conditioner sales reached 156.946 million units in
2023, up 10.4% year on year. This includes 90.541 million units sold domestically, up 12.9% year
on year, and exports totaling 66.405 million units, up 7.3% year on year, indicating an increase in
both domestic and export scales.
(II) Semiconductor industry
The semiconductor industry is a strategic, fundamental and leading industry that supports economic
and social development and safeguards national security. Driven by the development of 5G,
artificial intelligence, the IoT, and intelligentialization, the semiconductor industry is expected to
usher in a new wave of growth cycles. Among them, semiconductor storage is the largest
subdivision in the semiconductor industry in recent years. At present, South Korean companies
represented by Samsung and Hynix are in the leading position in the field of semiconductor storage.
China has also accelerated in boosting the production capacity of semiconductor storage in recent
years. It is expected that the self-sufficiency rate will continue to increase.
Micro LED is the prevailing trend and development direction of future display technology. The
industrial chain is divided into four main links: upstream chip manufacturing and mass transfer,
midstream panel manufacturing, and downstream complete machine application. The Micro LED
has wide industrial application and a broad market.

II Principal Activity of the Company in the Reporting Period

(I) The consumer electronics business
This division primarily comprises the multimedia sub-division and the white goods sub-division,
with details as follows:
1. The multimedia business
The Company's multimedia business faces the global market, mainly including domestic color TV
business and export color TV business.
The domestic sales of the Company’s colour TVs are realized mainly through B2B (Business-to-
Business) and B2C (Business-to-Consumer), with its branch companies, business departments
and after-sales maintenance points operating across the country. And the Company profits from
the margins between the costs and the selling prices of its colour TVs.
As for selling its colour TVs abroad, the Company mainly relies on B2B. Its colour TVs are sold
to Asia Pacific, Middle East, Central & South America, East Europe, etc. And operating profit
source is also the differences between the costs and the selling prices of its colour TVs.
2. The white goods business
The white goods produced by the Company mainly include refrigerators, washing machines, air
conditioners, freezers, etc., which are sold through B2B and B2C mainly to the domestic market.
And the Company profits from the margins between the costs and the selling prices of its white
15
Konka Group Co., Ltd. Annual Report 2023


goods. The Company strengthened the foundation of our white goods brands through the acquisition
of the Frestec brand. Meanwhile, the establishment of the Ningbo A/C production base as a joint
venture has helped the Company build its own A/C manufacturing capability. The weakness in the
front-loading washing machine technology has been overcome by the acquisition of Beko (Front-
loading Washing Machine) China Factory. In addition, the Company went on a new path of
exploring the dishwasher world by setting up Xi’an Smart Appliances Park. The Company also
optimized the internal R&D, production, procurement, sales, and services processes, integrated the
external channel resources to enable channel sharing between the upstream procurement processes
and downstream sales processes, and improved the product sales structure and competitiveness of
the white goods business.
(II) The memory chip trading and semiconductor business
Currently, the Company is engaged in memory chips, optoelectronics, etc. with respect to the semi-
conductor business. In memory chips, the Company primarily engages in packaging and testing of
memory chip products. In optoelectronics, the Company primarily develops Micro LED-related
products. The Company's memory chip trading business mainly focuses on the memory chips
involved in the Company's traditional main business. The operating profit comes from the price
difference between upstream procurement and downstream sales. This business is able to facilitate
the development of the semiconductor business by helping accumulate customer resources for the
semiconductor and chip business, provide sales channels, and achieve accurate matching of market
demand, with a shortened product development period and a lower risk of mismatching of R&D
and market demand.
(III) The environment protection and new materials business
In this business, renewable resources are collected, sorted, processed, distributed and sold.

III Core Competitiveness Analysis

The Company’s core competitiveness lies in its manufacturing ability, R&D ability, brand,
marketing network and human resources. In terms of manufacturing ability, the Company has
carried out intelligent upgrading of manufacturing bases in Anhui, Dongguan, Suining, Xinxiang,
etc., of which the Anhui Konka plant has been awarded the title of "National Intelligent
Manufacturing Demonstration Factory", with an advanced intelligent manufacturing level in the
industry. It has developed a three-tier R&D system of “Research institute+key labs+product
development centers”, established artificial intelligence internet of things comprehensive laboratory
and 5G Ultra HD laboratory with major universities or scientific research institutions, established
academician workstation, and built a technology research alliance matching the industrial layout,
with nearly 100 core technologies and about 1,500 R&D talents. The Company has introduced
around 100 experts on the micro LED project. In terms of brand, the Company continues to
16
Konka Group Co., Ltd. Annual Report 2023


promote brand strategy construction, system construction, image construction and cultural
construction, focuses on improving the scientific and international image of the enterprise,
strengthens the brand status, has a certain brand awareness and reputation in the consumer group,
and has good brand credit in banks and other financing channels. In terms of marketing channels,
the Company innovates channel reform, cooperates online and offline for win-win results, and
strives for development at home and abroad. Regarding offline channels, the Company has 47
branches, more than 100 offices, and more than 3,000 after-sales service shops across China, and
the marketing and service network is all over the country; as for online channels, the Company has
settled in Tmall, JD, Suning, VIPshop, Pinduoduo and other mainstream e-commerce platforms to
innovate and develop live e-commerce business, and seek a new growth pole for business
development; overseas channel, the company The Company's business covers Latin America,
Europe, Asia Pacific and other countries and regions, with a sound marketing network. In terms of
human resources, the Company boasts a leadership team of many years of management and
industry experience, as well as a high quality execution team.

IV Core Business Analysis

1. Overview

In 2023, the Company adopted a new development framework of “One Axis, Two Wheels and
Three Growth Drivers”. It fully implemented lean management, and carried out campaigns such as
asset revitalisation, cost control and efficiency improvement, legal person reduction and cost
reduction and profit increase. Also, the Company has restructured its business layout through
organisational restructuring and optimisation of business entities, and optimised its resources to
focus on its two main businesses of consumer electronics and semiconductors, laying the
foundation for its next step of high-quality development.
For 2023, the Company recorded operating revenue of RMB17.849 billion, down 39.71% year on
year; a net profit attributable to its shareholders of RMB-2.164 billion, representing a year-on-year
drop of 47.15%; and net cash generated from operating activities of RMB553 million, a turnaround
from loss to profit.
As a result of the following reasons, the Company saw a year-on-year decline in operating revenue
and a relatively large loss in 2023.
(1) Main causes of operating revenue decline in 2023
In 2023, the Company focused on its core business, and promoted business restructuring by
proactively optimizing part of industry trade and environmental protection business segments
which failed to empower the main business and had low gross margin. As a result, the Company
experienced a certain degree of decline in operating revenue.

17
Konka Group Co., Ltd. Annual Report 2023


(2) Main causes of net loss in 2023
① In 2023, the Company incurred a certain degree of loss in its colour TV business due to factors
such as product strategy adjustments and ongoing supply chain fluctuations. In terms of domestic
sales of colour TVs, the Company made systematic adjustments to its product planning and sales
strategies during the current period. The mid-to-high-end new products X6/M6/R7 were mainly
launched in the second half of 2023. However, the introduction and sales ramp-up cycle of these
new TV products lagged behind, failing to fully compensate for the clearance losses resulting
from the discontinuation of old models. This, to some extent, affected the sales scale and total
profit of the Company's domestic TV business. Regarding TV exports and OEM business, due to
the continuous fluctuation in upstream supply chain costs in 2023, the gross margin of orders
delivered by the Company's TV exports and OEM business was relatively low. Although strategic
adjustments helped to gradually improve the operational quality in the second half of 2023, the
gross margin for the full year 2023 was still unable to fully cover rigid expenses.
② In 2023, in accordance with the Company's development strategy and considering the
macroeconomic environment, the Company upheld the principle of "industrial park service
aligned with core business strategy" and continued to reduce its business in industrial parks. There
were virtually no new large-scale industrial park projects in 2023, resulting in a decrease in
related income compared to the previous year.
③ In 2023, although the Company's semiconductor business made certain achievements in
several key industrial chain technologies, it remained in the early stages of industrialization. R&D
investment continued to grow, but scale and efficiency in output were not achieved, affecting the
overall operating profit of the Company.
④ In 2023, based on the principle of prudence, the Company made a provision for asset
impairment of approximately RMB1,017 million in accordance with accounting policies and
estimates, resulting in a decrease in profit.
⑤ In 2023, the Company strategically optimized non-core operations such as industry trade and
environmental protection, resulting in a narrowing of profit sources and a decrease in related
income.
(3) Key tasks for 2023
① The business structure and organizational system continued to be optimized
Under the new development strategy, the Company focused on two core businesses, i.e. consumer
electronics and semiconductors, and actively promoted the adjustment of its business structure
and the optimization of its organizational system.
In terms of business adjustments, the Company optimized non-core businesses by gradually
withdrawing from industry trade and environmental protection segments to focus resources on its
two core businesses - consumer electronics and semiconductors.

18
Konka Group Co., Ltd. Annual Report 2023


In terms of organizational optimization, the Company continued to refine its organizational
structure by further improving the personnel remuneration system, and implementing full-scope
control over the total workforce to effectively enhance personnel efficiency. This ensured that the
organizational system operated more efficiently.
② Lean management yielded tangible results.
In 2023, the Company implemented the lean management concept in various aspects of research,
production, supply, sales, and services, as well as the entire chain of investment, financing,
management, and withdrawal. With a focus on "people, positions, and tasks", it implemented
meticulous management down to the smallest detail, and intensified in-depth efficiency
improvement, cost control, and fee reduction efforts, to optimize and enhance operating cash flow.
Including:
As for cost control and efficiency improvement, the Company adhered to the goal of "maximizing
cost efficiency" and continued to strengthen process control around aspects such as "performance
drivers, classified guidance, lean management, key improvement areas, and integrated
governance".
Regarding cost reduction and profit increase, the Company implemented precise cost reduction in
procurement. On one hand, it focused on the prices of bulk materials and supply-demand trends,
enhancing its ability to analyze and make decisions regarding raw material markets. On the other
hand, it strengthened procurement process control to ensure that market fluctuations were aligned
with changes in supply and demand structures.
③ Product capabilities were effectively enhanced.
In 2023, the Company was guided by market demand, led by technological innovation, and
positioned products as the core to coordinate research, production, supply, sales, and services. It
maintained the mindset of creating fine products, and adopted a quality-oriented approach to
make, refine and optimize products and enhance the ability to generate gross profit from products.
Regarding colour TVs, the Company completed the upgrading and iteration of domestically sold
products, with all 12 models of the four major new product series entering mass production as
planned. Exported products focused on promoting the level of product intelligence, with Google
Android system platform certification completed. In 2023, the gross profit of the colour TV
business increased by 17.72% YoY. For white goods, the Company launched new products
including 500-liter side-by-side refrigerators, the Zhencai series washing machines, and the
Zhinyin series air conditioners. The Frestec 509-liter freestanding refrigerators with five-layer
sterilization technology entered mass production, while dishwasher production entered the small
batch testing phase. In 2023, the gross profit of the white goods business grew by 15.00% YoY. In
terms of PCB, the Company successfully achieved significant improvements in the number of
layers, inner and outer layer circuitry, and circuit production capabilities. The proportion of high-

19
Konka Group Co., Ltd. Annual Report 2023


end products with multi-layer boards and metal-based boards significantly surged, facilitating the
completion of product lines and propelling the brand towards a more upscale positioning. In 2023,
the gross profit of the PCB business increased by 54.46% YoY.
④ Manufacturing capabilities significantly strengthened
In 2023, the Company adhered to professional and differentiated development, strengthened lean
manufacturing, built a solid clientele, and solidified manufacturing capabilities. In terms of colour
TVs, the Company completed the construction of a production line for 120-inch ultra-large panels.
The production efficiency of the Ankang Green Smart Plant improved significantly year-on-year,
and the Company also expanded its customer base to include several strategic clients. Regarding
white goods, the Company's per capita efficiency for white goods products continued to improve.
It established preliminary manufacturing capabilities for dishwashers and systematically advanced
the Frestec refrigerator and freezer new smart plant projects. This initiative enabled the Company
to build comprehensive manufacturing capabilities for "refrigerators, washing machines, air
conditioners and kitchen appliances" across all product categories, and it successfully onboarded
several strategic clients. For PCB, the Company's new smart plant in Suining officially
commenced production, diversifying the product lines of multi-layer boards and HDI (high-
density interconnect) boards. It also expanded its customer base to include leading clients in new
energy, automotive electronics, Mini LED optoelectronic displays, and other fields. The
proportion of mid-to-high-end products saw a significant increase.
⑤ International business steadily advanced
On one hand, the Company drove scalable development through differentiated strategies. The
Company strengthened its differentiated operations in the colour TV business. In the Middle East
and Africa markets, it focused on local manufacturing in Egypt. In the European market, it was
driven by a combination of "best-selling + high-end" products. In emerging markets, it leveraged
smart TV products as a key strategy. In 2023, the Company achieved rapid growth in TV export
revenue. In the white goods business, the Company fully utilized the advantages of the China-
Europe Railway Express, vigorously expanding into the European market. It focused on core
clients and cultivated major clients in regions such as Russia, Germany, and West Africa.
Overseas business revenue experienced remarkable year-on-year growth.
On the other hand, it constructed its own brand pattern through refined operations. In the colour
TV business, by implementing hierarchical customer management and optimizing resource
allocation, the Company stabilized its presence in traditional markets such as the Middle East,
Latin America, and Europe. Simultaneously, it expanded into eight blank areas including Australia,
Algeria, and Kazakhstan. Moreover, it assisted clients in Brazil, Japan, Russia, Gulf countries,
and others in exporting customized local marketing solutions. As a result, the export revenue of its
proprietary brand business witnessed significant growth in 2023.

20
Konka Group Co., Ltd. Annual Report 2023


⑥Technological breakthroughs and industrial transformation were rapidly implemented
The Company insists on building an original technology innovation hub, focusing on advancing
core technological breakthroughs and industrial transformation. In terms of core technological
breakthroughs, the Company has achieved certain results in areas such as hybrid mass transfer,
mass repair, chip miniaturization, and Mini LED direct view display. Chongqing Konka
Optoelectronic Technology Co., Ltd. was included in the list of "Science and Technology Reform
Demonstration Enterprises" by the SASAC, and its application to the SASAC for "Sailing
Enterprises" has entered the defense stage. In terms of industrial transformation, the Micro LED
chip and mass transfer segments have achieved sample delivery and small-scale sales to multiple
clients. The Mini LED direct view display segment focused on cost reduction, sales to major
clients, and collaboration with engineering clients, and developed more than ten customers in total.

2. Revenue and Cost Analysis

(1) Breakdown of Operating Revenue

Unit: RMB
2023 2022
As % of total As % of total Change (%)
Operating revenue operating revenue Operating revenue operating revenue
(%) (%)
Total 17,849,331,429.24 100% 29,607,854,255.27 100% -39.71%
By operating division
Consumer
electronics
10,204,905,315.64 57.17% 10,871,843,067.02 36.72% -6.13%
Memory chip
trading and 3,397,161,542.60 19.03% 10,411,179,055.37 35.16% -67.37%
semiconductor
Environment protec
tion and new 1,145,732,124.31 6.42% 1,548,557,255.52 5.23% -26.01%
materials
Other 3,101,532,446.69 17.38% 6,776,274,877.36 22.89% -54.23%
By product category
Color TVs 4,708,450,488.99 26.38% 5,023,097,945.06 16.97% -6.26%
White goods 4,257,423,386.71 23.85% 3,929,504,730.97 13.27% 8.35%
Memory chip
trading and 3,397,161,542.60 19.03% 10,411,179,055.37 35.16% -67.37%
semiconductor
Environment protec
tion and new 1,145,732,124.31 6.42% 1,548,557,255.52 5.23% -26.01%
materials
PCB 476,456,155.62 2.67% 663,849,487.53 2.24% -28.23%
Other 3,864,107,731.01 21.65% 8,031,665,780.82 27.13% -51.89%
By operating segment
Domestic 10,716,944,822.00 60.04% 14,845,908,414.38 50.14% -27.81%
Overseas 7,132,386,607.24 39.96% 14,761,945,840.89 49.86% -51.68%
By marketing model
Direct sales 5,565,516,534.04 31.18% 5,773,701,603.23 19.50% -3.61%
Distribution 12,283,814,895.20 68.82% 23,834,152,652.04 80.50% -48.46%




21
Konka Group Co., Ltd. Annual Report 2023


(2) Operating Division, Product Category, Operating Segment or Marketing Model
Contributing over 10% of Operating Revenue or Operating Profit

√ Applicable □ Not applicable
Unit: RMB
YoY change in YoY change in
Gross profit YoY change in
Operating revenue Cost of sales operating revenue gross profit margin
margin cost of sales (%)
(%) (%)
By operating division
Consumer 10,204,905,315 9,670,394,039.
5.24% -6.13% -7.61% 1.51%
electronics.64 66
Memory chip
3,397,161,542. 3,433,148,164.
trading and -1.06% -67.37% -66.94% -1.31%
semiconductor 60 76
By product category
4,708,450,488. 4,756,604,973.
Color TVs -1.02% -6.26% -6.40% 0.14%
99 05
4,257,423,386. 3,790,414,584.
White goods 10.97% 8.35% 7.58% 0.63%
71 40
Memory chip
3,397,161,542. 3,433,148,164.
trading and -1.06% -67.37% -66.94% -1.31%
semiconductor 60 76
By operating segment
10,716,944,822 10,283,636,801
Domestic 4.04% -27.81% -27.87% 0.07%
.00.86
7,132,386,607. 6,865,399,948.
Overseas 3.74% -51.68% -52.76% 2.18%
24 64
By marketing model
5,565,516,534. 5,405,059,203.
Direct sales 2.88% -3.61% -2.40% -1.20%
04 62
12,283,814,895 11,743,977,546
Distribution 4.39% -48.46% -49.49% 1.94%
.20.88
Core business data of the prior year restated according to the changed statistical caliber for the
Reporting Period:
□ Applicable √ Not applicable
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
√ Yes □ No
Operating division Item Unit 2023 2022 Change (%)
Unit sales 0,000 units 1,070 1,028 4.09%
Consumer
electronics Output 0,000 units 1,080 983 9.87%
Inventory 0,000 units 81 73 10.96%

Any over 30% YoY movements in the data above and why:
□ Applicable √ Not applicable
(4) Execution Progress of Major Signed Sales and Purchase Contracts in the Reporting
Period
□ Applicable √ Not applicable
(5) Breakdown of Cost of Sales
By product category
Unit: RMB
2023 2022
Product category Item Change (%)
Cost of sales As % of total cost of Cost of sales As % of total cost


22
Konka Group Co., Ltd. Annual Report 2023

sales (%) of sales (%)
4,756,604,973.
Color TVs Color TVs 27.74% 5,081,621,150.13 17.65% -6.40%
05
3,790,414,584.
White goods White goods 22.10% 3,523,413,567.24 12.24% 7.58%
40
Memory chip
Memory chip
trading and 3,433,148,164.
trading and 20.02% 10,384,753,139.40 36.07% -66.94%
semiconductor
semiconducto 76
r
Environment
Environment prote
protection 1,134,022,493.
ction and new 6.61% 1,511,874,387.74 5.25% -24.99%
materials
and new 39
materials
420,480,569.6
PCB PCB 2.45% 627,609,981.96 2.18% -33.00%
0
3,614,365,965.
Other Other 21.08% 7,659,366,167.41 26.61% -52.81%
30
Note:
Cost of sales changed accordingly with operating revenue.
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
√ Yes □ No
Registered capital The Company’s Date of
Name of subsidiary Reason for change
(RMB) interest (%) change
Anhui Konka Zhilian E-Commerce Co.,
5,000 0.00 2023-6-1
Ltd.
De-registered
Jiangsu Konka Special Material
10,000 0.00 2023-10-8
Technology Co., Ltd.
Sichuan Hongxinchen Real Estate
2,500 49.00 2023-2-27
Development Co., Ltd.
Yibin Kangrun Environmental
7,600 0.00 2023-11-27
Protection Power Generation Co., Ltd.
Chongqing Kang xing rui Environmental
5,000 0.00 2023-12-5
Technology Co., Ltd.
Zhongshan Kanghong Electronic
7,000 0.00 2023-12-19
Technology Co., Ltd.
Guizhou Kanggui Energy Co., Ltd. 10,000 0.00 2023-12-25 Equity transfer
Kanghong (Yantai) Environmental
3,000 0.00 2023-12-28
Technology Co., Ltd.
Chongqing Fangbing Real Estate Co.,
2,000 49.00 2023-2-27
Ltd.
Chongqing Kang xing rui Renewable
6,000 0.00 2023-12-5
Resources Co., Ltd.
Chongqing Kang xing rui Scraped
10,000 0.00 2023-12-5
Automobile Recycling Co., Ltd.

(7) Major Changes to the Business Scope or Product or Service Range in the Reporting
Period
□ Applicable √ Not applicable
(8) Major Customers and Suppliers
Major customers:
Total sales to top five customers (RMB) 5,029,937,059.53
Total sales to top five customers as % of total sales of the
28.17%
Reporting Period (%)
Total sales to related parties among top five customers as % of
0.00%
total sales of the Reporting Period (%)


23
Konka Group Co., Ltd. Annual Report 2023


Top five customers:
Sales revenue contributed for As % of total sales revenue
No. Customer
the Reporting Period (RMB) (%)
1 Customer A 1,935,159,220.70 10.84%
2 Customer B 1,217,950,598.75 6.82%
3 Customer C 694,693,692.94 3.89%
4 Customer D 689,729,963.97 3.86%
5 Customer E 492,403,583.17 2.76%
Total -- 5,029,937,059.53 28.17%

Other information about major customers:
√ Applicable □ Not applicable
None of the top five customers were related parties of the Company. And none of the Company’s
directors, supervisors, executive officers, core technicians, over 5% shareholders, actual controller
or any other related parties held equity interests in the major customers, directly or indirectly.
Major suppliers:
Total purchases from top five suppliers (RMB) 5,074,672,418.49
Total purchases from top five suppliers as % of total purchases
31.96%
of the Reporting Period (%)
Total purchases from related parties among top five suppliers
0.00%
as % of total purchases of the Reporting Period (%)
Top five suppliers:
Purchase in the Reporting
No. Supplier As % of total purchases (%)
Period (RMB)
1 Supplier A 1,718,825,666.93 10.82%
2 Supplier B 1,268,987,192.38 7.99%
3 Supplier C 704,760,127.46 4.44%
4 Supplier D 698,255,754.27 4.40%
5 Supplier E 683,843,677.44 4.31%
Total -- 5,074,672,418.49 31.96%

Other information about major suppliers:
√ Applicable □ Not applicable
None of the top five customers were related parties of the Company. And none of the Company’s
directors, supervisors, executive officers, core technicians, over 5% shareholders, actual controller
or any other related parties held equity interests in the major customers, directly or indirectly.
3. Expense
Unit: RMB
Reason for any
2023 2022 Change (%)
significant change
Selling expense 1,145,124,848.96 1,240,144,735.77 -7.66%
Administrative expense 807,527,910.20 949,647,590.28 -14.97%
Finance costs 562,016,110.24 522,423,743.18 7.58%
R&D expense 497,993,759.86 543,882,024.89 -8.44%

4. R&D Investments
√ Applicable □ Not applicable

24
Konka Group Co., Ltd. Annual Report 2023

Names of
Expected impact on the
main R&D Project objectives Project progress Objectives to be achieved
Company
projects
To drive the
development and
To further improve the
breakthrough of key
hardware facilities for
core technologies in
mass transfer and repair
the Micro LED display To achieve expected
The project has passed based on the existing
Laser direct industry, along with benchmarks in terms of Micro
its mid-term inspection, mass transfer
transfer the industrialization LED display mass transfer
and wafer testing trials to foundation, enhancing
technology and localization of yield, efficiency, the number
verify compliance are the Company's
development equipment, and to of chips repaired in a single
underway. capabilities in the field
strengthen the attempt, and yield after repair.
of Micro LED laser
upstream and
mass transfer and repair
downstream supply
technology.
chain of the Micro
LED industry.
To verify the
production process Optical performance
stability of red light meets the requirements
To meet commercial display
Mini chip chips in epitaxy and for commercial displays. The production capacity
optical performance
performance chip manufacturing, Plans are underway to of the epitaxy and chip
requirements and initiate mass
improvement and to introduce them start mass production lines is validated.
production.
into commercial following the completion
display production in of the final setup.
small batches.
To enhance chip Development of green
Micro LED To meet performance and To meet the needs of
performance to meet and blue light chips has
chip yield targets, continuously internal and external
the needs of internal been completed, with
performance improving the input-output customers and proceed
and external ongoing efforts to further
enhancement ratio of red light chips. to industrialization.
customers. enhancements.
To meet the demand
for metal substrates in
Development
new energy and energy Entering the high-end
of metal Samples have been
storage fields, broaden To start small-scale production product market will
press-fit submitted for customer
the product line, and in 2024. enhance the Company's
hybrid testing.
enhance the competitiveness.
substrates
Company's
technological level.
Preliminary market To enhance the
To independently
Development research and material Company's technology
develop projects that
of 5G metal preparation have been To enter industrialization by reserves, improve R&D
meet the requirements
substrate completed, and the 2025. capabilities, and
for high-tech
products project is currently in the maintain a technological
enterprise certification.
trial production stage. lead.
Technology development
Research and
has been completed,
industrializati
To achieve precise applied to products, and
on of precise To improve the
preservation of mass production has
fresh-keeping To complete the development Company's refrigerator
different food been realized. The
and of new technology and realize precise fresh-keeping
materials within the technology project won
intelligent its application in a series of technology level and
refrigerator, enhancing the third prize of Science
storage products. enhance product
the preservation effect and Technology Progress
technology competitiveness.
of the refrigerator. Award of China National
for household
Light Industry Council in
refrigerators
2023.
To achieve the
Development development of high-
of high- performance Mini Technology-to-product To enhance the
Related products have been
performance LED backlight conversion has been competitiveness of the
launched in batches.
Mini LED technology and commercialized. Company's products.
backlight productize the
technology.


25
Konka Group Co., Ltd. Annual Report 2023


Details about R&D personnel:
2023 2022 Change (%)
Number of R&D personnel 1,479 1,537 -3.77%
R&D personnel as % of total
10.48% 10.59% -0.11%
employees
Educational background of R&D personnel
Bachelor’s degree and below 1,349 1,398 -3.51%
Master’s degree 124 131 -5.34%
Doctoral degree 6 8 -25.00%
Age structure of R&D personnel
Below 30 695 716 -2.93%
30-40 551 573 -3.84%
Over 40 233 248 -6.05%
Details about R&D investments:
2023 2022 Change (%)
R&D investments (RMB) 497,993,759.86 543,882,024.89 -8.44%
R&D investments as % of operating
2.79% 1.84% 0.95%
revenue
Capitalized R&D investments (RMB) 0.00 0.00 0.00
Capitalized R&D investments as % of
0.00% 0.00% 0.00%
total R&D investments
Reason for any significant change in R&D personnel composition and the impact:
□ Applicable √ Not applicable
Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□ Applicable √ Not applicable
Reason for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable √ Not applicable
5. Cash Flows
Unit: RMB
Item 2023 2022 Change (%)
Subtotal of cash generated from
18,703,945,979.20 33,467,042,610.14 -44.11%
operating activities
Subtotal of cash used in
18,150,844,701.30 33,995,345,651.97 -46.61%
operating activities
Net cash generated from/used in
553,101,277.90 -528,303,041.83 204.69%
operating activities
Subtotal of cash generated from
2,481,589,961.16 5,299,153,383.77 -53.17%
investing activities
Subtotal of cash used in
2,013,333,188.02 4,972,918,573.56 -59.51%
investing activities
Net cash generated from/used in
468,256,773.14 326,234,810.21 43.53%
investing activities
Subtotal of cash generated from
11,690,214,069.69 21,373,734,199.02 -45.31%
financing activities
Subtotal of cash used in
12,521,398,097.40 21,706,022,136.76 -42.31%
financing activities
Net cash generated from/used in
-831,184,027.71 -332,287,937.74 -150.14%
financing activities
Net increase in cash and cash
212,872,338.65 -506,435,208.13 142.03%
equivalents
Explanation of why any of the data above varies significantly:
√ Applicable □ Not applicable

26
Konka Group Co., Ltd. Annual Report 2023


Net cash generated from/used in operating activities changed primarily because with decreased
inventories, cash payments for goods and services as a percentage of cash inflows from sales
declined year on year.
Net cash generated from/used in investing activities changed primarily because cash payments for
construction and acquisition of fixed assets, intangible assets and other long-term assets declined
year on year.
Net cash generated from/used in financing activities changed primarily because borrowings
declined year on year.
Reason for any big difference between the net operating cash flow and the net profit for this
Reporting Period:
□ Applicable √ Not applicable
V Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
Amount As % of total profit Source/Reason Recurrent or not
Change to the
measurement method
Return on investment 675,405,221.53 -24.86% Not
of investee company in
the current period
Change to the
Gain/loss on changes measurement method
-97,937,910.89 3.60% Not
in fair value of investee company in
the current period
Impairments of
Asset impairments -1,017,195,966.23 37.43% receivables and Not
inventories
Increased gains that
were not directly
Non-operating income 26,263,072.49 -0.97% related to the Not
Company’s routine
operations
Non-operating expense 156,685,855.03 -5.77% Not

VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
31 December 2023 1 January 2023 Change in Reason for any
As % of total As % of total percentage significant
Amount Amount (%) change
assets assets
Monetary 6,506,359,577.
18.16% 5,988,095,490.71 15.75% 2.41%
assets 02
Accounts 1,726,545,973.
4.82% 2,036,734,836.22 5.36% -0.54%
receivable 08
Contract assets 2,190,385.93 0.01% 0.00% 0.01%
3,249,897,700.
Inventories 9.07% 4,409,767,756.22 11.60% -2.53%
98
Investment 1,470,226,723.
4.10% 802,407,844.60 2.11% 1.99%
property 87
Long-term
5,566,483,863.
equity 15.54% 6,351,232,955.58 16.70% -1.16%
29
investments
Fixed assets 5,218,297,745. 14.57% 4,114,029,693.38 10.82% 3.75%

27
Konka Group Co., Ltd. Annual Report 2023

16
Construction in
860,899,498.68 2.40% 1,990,361,377.07 5.23% -2.83%
progress
Right-of-use
197,054,423.17 0.55% 50,019,838.68 0.13% 0.42%
assets
Short-term 6,390,592,056.
17.84% 7,579,559,304.97 19.93% -2.09%
borrowings 27
Contract
527,975,160.12 1.47% 601,044,358.35 1.58% -0.11%
liabilities
Long-term 7,779,150,079.
21.71% 8,906,931,402.89 23.42% -1.71%
borrowings 88
Lease liabilities 160,218,818.92 0.45% 36,586,639.16 0.10% 0.35%

Indicate whether overseas assets account for a larger proportion of the total assets.
□ Applicable √ Not applicable
2. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
Unit: RMB
Gain/loss on Cumulative
Impairment
fair-value fair-value Purchased in Sold in the
Beginning allowance for Other Ending
Item changes in changes the Reporting Reporting
amount the Reporting changes amount
the Reporting charged to Period Period
Period
Period equity
Financial assets
1. Trading
financial
assets -
974,897,430. 169,648,766. 469,636,700.
(derivative 0.00 335,611,963.
42 00 78
financial 64
assets
excluded)
2. Derivative
financial 0.00
assets
3.
Investments
in other debt
obligations
4.
Investments
23,841,337.1 23,841,337.1
in other
6 6
equity
instruments
5. Other non-
current 2,639,662,27 22,348,324.9 653,534,200. 2,009,676,39
1,200,000.00
financial 3.32 5 27 8.00
assets
Subtotal of -
2,663,503,61 22,348,324.9 976,097,430. 823,182,966. 2,503,154,43
financial 335,611,963. 0.00 0.00
0.48 5 42 27 5.94
assets 64
Investment
property 0.00

Productive
living assets 0.00
237,187,228. 173,396,326. 237,187,228. 173,396,326.
Other 0.00 0.00 0.00 0.00
44 14 44 14
-
Total of the 2,900,690,83 22,348,324.9 1,149,493,75 1,060,370,19 2,676,550,76
335,611,963. 0.00 0.00
above 8.92 5 6.56 4.71 2.08
64
Financial
liabilities 0.00 0.00

Particulars about other changes:
Gain/loss on fair- Impairment
Purchased in Sold in the
Beginning value changes in Cumulative fair-value allowance for Other
Item the Reporting Reporting Ending amount
amount the Reporting changes charged to equity the Reporting changes
Period Period
Period Period
Receivables 237,187,228.44 173,396,326.14 237,187,228.44 173,396,326.14


28
Konka Group Co., Ltd. Annual Report 2023

financing

Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes √ No
3. Restricted Asset Rights as at the Period-End
Ending carrying value
Item Reason for restriction
(RMB)
Of which, RMB384,011,696.60 is security deposits put in pledge for loans or the
Monetary assets 831,575,227.47 issuance of bank acceptance bills; RMB226,611,500.00 is term deposits that cannot
be withdrawn in advance; and RMB220,952,030.87 is restricted for other reasons.
Accounts
2,474,071.67 In pledge for loan
receivable
Notes receivable 209,288,446.67 In pledge for the issuance of bank acceptance bill
Affected by the small shareholder case of the subsidiary, the book value of the
sealed inventory is 49679547.48 yuan, and the company has not waived its claims;
Inventories 599,475,045.44
The year-end book value of inventory used for mortgage loans is 549795497.96
yuan.
Investment property 585,984,804.04 As collateral for loan
Fixed assets 1,689,602,310.18 As collateral for finance lease, loan, and former shareholder guarantee
Intangible assets 620,594,057.60 As collateral for finance lease, loan, and former shareholder guarantee
Construction in
40,629,663.23 As collateral for loan
progress
Total 4,579,623,626.30

VII Investments Made
1. Total Investment Amount
√ Applicable □ Not applicable
Amount of the same period of last year
Amount of Reporting Period (RMB) Change (%)
(RMB)
1,483,759,951.04 4,490,904,118.80 -66.96%

2. Major Equity Investments Made in the Reporting Period
□ Applicable √ Not applicable
3. Major Non-Equity Investments Ongoing in the Reporting Period
√ Applicable □ Not applicable
Unit: RMB
Reason
Accumu for not
Accumula
lative meeting
Fixed Input tive actual
Estimate realized the
Investm assets amount input Pro Disclosu Disclosu
Industry Capital d revenue schedule
Item ent investm in the amount as gres re date re index
involved resources revenue s as of and
method ent or Reportin of the s (if any) (if any)
s the expecte
not g Period period-
period- d
end
end revenue
s
Donggu
an
Konka Electron Self- and
Self- 52,763,2 597,772,7 2017-
Intellige Yes ic bank loan- N/A
build 58.07 64.56 03-11
nt industry funded http://w
Industri ww.cnin
al Park fo.c
Suining n/new/in
Konka dex
Electron
Electron
ic Self- 77,521,8 560,926,9 Self- 2018-
Yes ic N/A
Technol build 92.09 43.76 funded 10-17
industry
ogy
Industri
al Park

29
Konka Group Co., Ltd. Annual Report 2023

Chongqi
ng
Konka
Semicon Electron Self- and
Self- 68,261,5 659,258,1 2019-
ductor Yes ic bank loan- N/A
build 42.5 40.16 06-14
Photoele industry funded
ctric
Industri
al Park
Frestec
Electron Self- and
Refriger Self- 211,647, 459,445,5 2020-
Yes ic bank loan- N/A
ation build 231.52 61.07 07-21
industry funded
Park
Xi’an
Konka
Smart
Electron Self- and
Applian Self- 416,624, 596,286,6 2021-
Yes ic bank loan- N/A
ces build 730.62 66.50 02-10
industry funded
Headqu
arters
Project
826,818, 2,873,690
Total -- -- -- -- -- -- -- --
654.80,076.05

Note: Dongguan Konka Intelligent Industrial Park has been completed and accepted. Xi’an Konka
Smart Appliances Headquarters Project has been put into use. Suining Konka Electronic
Technology Industrial Park and Frestec Refrigeration Park are under construction. Regarding the
Semiconductor Photoelectric Research Institute of Chongqing Konka Semiconductor Photoelectric
Industrial Park, the infrastructure of the first phase has been completed and accepted, with the
remaining infrastructure construction ongoing.
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
Unit: RMB
Acc Accu
Sou
ount Beg Gain/Loss mulat
Co Purch rce
Initial ing inni on fair ed fair Sold Gain/l Endin
Variet de Name ased of
mea ng value value in oss in g
y of of of investme in Accoun inve
sure carr changes chang Repor Repor carryi
securi sec securit nt cost Repor ting title stm
men ying in es ting ting ng
ty uri y ting ent
t valu Reporting charg Period Period value
ty Period fund
met e Period ed to
s
hod equity
Fair
Dome Chutia Self
00 valu - 974,89 169,64 - 469,63 Trading
stic/F n 974,897,4 -
30 e 0.00 335,611,963 0.00 7,430.4 8,766.0 46,591, 6,700.7 financia
oreign Drago 30.42 fund
40 met.64 2 0 299.41 8 l assets
stock n ed
hod
Other securities
investments held at the 0.00 -- 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -- --
period-end
- 974,89 169,64 - 469,63
974,897,4
Total -- 0.00 335,611,963 0.00 7,430.4 8,766.0 46,591, 6,700.7 -- --
30.42
.64 2 0 299.41 8
Disclosure date of announcement on board’s
4 April 2023
approving securities investment (if any)
Disclosure date of announcement on
shareholders’ meeting approving securities N/A
investment (if any)
(2) Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
30
Konka Group Co., Ltd. Annual Report 2023


No such cases in the Reporting Period.
5. Use of Raised Funds
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Interests
□ Applicable √ Not applicable
IX Major Subsidiaries
√ Applicable □ Not applicable
Major fully/majority-owned subsidiaries and those minority-owned subsidiaries with an over 10%
effect on the Company’s net profit
Unit: RMB
Relatio
nship
Registered Operating
Name with the Principal activity Total assets Net assets Operating profit Net profit
capital revenue
Compa
ny
Manufacturing
Shenzhen Konka Subsidi RMB1,000,00
and sale of 643,458,460.23 451,677,708.59 76,790,723.30 9,997,602.71 9,795,415.03
Circuit Co., Ltd. ary 0,000
electronics
Anhui Konka
Manufacturing
Tong giường Subsidi RMB800,000, 3,395,712,049.5
and sale of 1,811,403,982.33 823,926,619.91 47,468,328.76 47,607,805.41
Electrical ary 000 8
electronics
Appliances Co., Ltd.
Hong Kong Konka Subsidi Export & import 2,726,423,284.9
HKD500,000 3,045,265,073.97 431,256,933.56 39,923,157.65 28,484,645.82
Co., Ltd. ary of electronics 0


Subsidiaries obtained or disposed of in the Reporting Period:
√ Applicable □ Not applicable
How subsidiary was obtained or disposed Effects on overall operations and
Subsidiary
in the Reporting Period operating performance
Anhui Konka Zhilian E-Commerce Co.,
Ltd.
De-registered For better allocation of assets
Jiangsu Konka Special Material
Technology Co., Ltd.
Sichuan Hongxinchen Real Estate
Development Co., Ltd.
Yibin Kangrun Environmental Protection
Power Generation Co., Ltd.
Chongqing Kang xing rui Environmental
Technology Co., Ltd.
Beneficial to the development of the
Zhongshan Kanghong Electronic
Equity transfer Company’s relevant business and bring
Technology Co., Ltd. about a certain amount of gains
Guizhou Kanggui Energy Co., Ltd.
Kanghong (Yantai) Environmental
Technology Co., Ltd.
Chongqing Fangbing Real Estate Co.,
Ltd.
Chongqing Kang xing rui Renewable


31
Konka Group Co., Ltd. Annual Report 2023

Resources Co., Ltd.
Chongqing Kang xing rui Scraped
Automobile Recycling Co., Ltd.
Information about principal subsidiaries and joint stock companies:
None
X Structured Bodies Controlled by the Company
□ Applicable √ Not applicable
XI Prospect of the Company’s Future Development
In 2024, the Company will follow the new development strategy of "One Axis, Two Wheels and
Three Growth Drivers," and adhere to long-term value-oriented principles as well as the operational
strategy of focusing on the long term, making profit before expansion, and improving specialization
before consolidation. It will also deepen professional integration, implement lean management, and
promote high-quality development. The Company’s main tasks in 2024 are listed as follows:
(I) Adhere to the spirit of reform and comprehensively deepen the new development strategy
First, reform and adjust the business structure. The Company will allocate resources to support the
development of its core business, focusing on driving the growth and profitability of the white
goods and PCB sectors. Lean management will be implemented to enhance value creation and
reduce losses in the colour TV business. Innovation efforts will be directed towards capitalization
and efficiency output of the semiconductor business, thereby creating a specialized business matrix.
Second, reform and adjust the product structure. First, the Company will establish an eco product
matrix for consumer electronics to drive systematic and ecological product operations. Second, the
Company will focus on optimizing the product mix of its core business, increasing investment in
R&D resources, fixed assets, talent pool, and other areas. Last, the Company will strengthen
product synergy, and leverage its advantages in optoelectronic semiconductor technology, PCB and
semiconductor memory supply chain to promote the high-end and differentiated development of
consumer electronics products.
Third, reform and adjust the structure of production capacity allocation. The Company will focus its
resources on steadily advancing the full operation of the PCB factory in Suining and the successful
establishment of washing machine and air conditioner production bases. It will also intensify efforts
to expand OEM business, aiming to enhance the operational performance of manufacturing
factories through economies of scale.
Fourth, reform and adjust the organizational structure of human resources. The Company will
strengthen the compatibility between production personnel and product output, control the overall
labor force, and increase per capita output. It will also continuously recruit top scientific research
personnel and overseas talents, improve incentives for enhancing personnel effectiveness, and boost
the initiative and enthusiasm of employees to improve productivity and efficiency.
Fifth, reform and adjust the direction of science, technology and innovation. The colour TV

32
Konka Group Co., Ltd. Annual Report 2023


business will integrate traditional technologies such as picture quality and sound quality with
cutting-edge technologies including Mini/Micro LED displays, 5G, 8K resolution, artificial
intelligence, AI large models, and cloud computing to gain a competitive edge in the differentiated
market. The white goods business aims to extensively apply cutting-edge technologies such as the
Internet of Things (IoT) and sensors to products, which will meet users' needs for health, comfort,
and eco-friendliness. The semiconductor optoelectronics business will strengthen breakthroughs in
chip miniaturization and mass transfer technologies to capitalize on the product revolution driven
by technological industrialization. The PCB business plans to combine the existing high multilayer
through-hole technology with advanced technologies such as HDI, thick copper, and rigid-flex
boards, to enter fields such as new energy, automotive electronics, and communication servers,
aiming to establish a presence in high-end products.
(II) Adhere to the lean concept and fully practice new management strategies
First, improve indicators for core capabilities. The Company will focus on core efficiency indicators
to drive value creation, and take robust and effective measures to steadily improve operational
performance.
Second, continue to implement cost-cutting and cost-control measures. In terms of expenses, the
Company will strengthen budget control throughout the process, and enhance management for key
expense items, while optimizing expense structure and reducing administrative expenses. In terms
of cost reduction, the Company will increase the proportion of centralized procurement, and
implement comprehensive cost reduction measures such as reducing procurement prices, improving
procurement turnover management, and integrating procurement with products to reduce costs.
Third, strengthen corporate governance. On the one hand, the Company will reduce the operating
risks of legal entities and promote the inflow of funds through measures such as reducing losses,
controlling deficits and reducing the number of legal entities. On the other hand, the Company will
strengthen the operating responsibility awareness of legal entities, establish a two-pronged control
mechanism with equal emphasis on management lines and legal entity lines, and accelerate the
improvement of the core business's profitability.
(III) Insist on bottom-line thinking and consolidate the ballast against risk in all aspects
First, promote assets revitalization. The Company will implement elevated management for key
assets revitalization projects in 2024, forming a work pattern where the headquarters oversees the
overall revitalization plan, business units implement specific measures, and key projects warrant
elevated focus for breakthroughs.
Second, optimize interest-bearing liabilities. The Company will actively adjust and optimize the
structure of interest-bearing liabilities, seek medium- to long-term financing opportunities, improve
the ratio of long-term to short-term debt, and reduce financing costs.
(IV) Adhere to the path of specialization and promote high-quality management on all fronts

33
Konka Group Co., Ltd. Annual Report 2023


"The drivers of products, manufacturing, and internationalization" serve as the main engine for the
"two-wheel" core business development, constituting the primary driving force for the Company's
core business development. The Company will adhere to long-term value-oriented principles, forge
a specialized business matrix, enhance the professional capabilities in "products, manufacturing,
and internationalization", and propel high-quality development of the principal business. The
specific tasks are as follows:
1. Colour TVs
In 2024, the key tasks of the colour TV business are to prioritize cash flow and profit, ensuring
maximization of total gross profit, operational cash flow, and per capita output efficiency. In terms
of domestic sales, first, it is necessary to reshape the capability for value management to improve
gross margin. Second, it involves focusing on creating high-quality products. Under the market
trends such as high refresh rates (120Hz and above) and Mini LED technology, the strategy is to
manufacture large-screen (65 inch and above) panels and create premium products that can rival the
best in the industry. Third, sales channels need to be transformed to promote integrated
development, while vigorously developing emerging channels such as OTO (Online To Offline) and
interest-based e-commerce, and promoting the synergistic integration and resource reuse of white
and black goods categories. In terms of export sales, with profitability as the primary objective, the
focus is on expanding manufacturing for international markets and promoting brand abroad. Under
the premise of maximizing gross profit, efforts are directed towards maximizing scale. Regarding
manufacturing, there is a further emphasis on expanding the customer base for strategic business
clients and increasing the scale of OEM production.
2. White goods
In 2024, the key tasks of the white goods business are as follows: First, the Company will aim for
efficiency through scale while seeking gains from product differentiation; second, the Company will
increase sales of new dishwasher categories, timely establish new production bases for product lines
with insufficient capacity such as air conditioners and washing machines, and realize production
with Frestec refrigeration technologies; third, the Company will maintain growth momentum in
export and OEM business, focus on advantageous markets, explore opportunities in untapped
markets, with a focus on Europe, Asia-Pacific, and Africa; fourth, the Company will effectively
coordinate the matrix arrangement of dual brands and sub-brands, promote the high-end upgrade of
brands and products, and maximize gross margin output through brand and upscale products.
3. Semiconductor technology
In 2024, the key tasks of the semiconductor technology business are twofold: First, the Company
will achieve industrial scale expansion, improve production efficiency, and continuously promote
BOM (Bill of Materials) optimization, process optimization, and yield improvement; second, the
Company will solidly advance cost reduction and expense control, continuously reduce expenses,

34
Konka Group Co., Ltd. Annual Report 2023


strengthen expense budget management, implement comprehensive budgeting, and enforce
"centralized management of costs and expenses", strictly control non-strategic expenses.
4. PCB
In 2024, the key tasks of the PCB business are threefold: First, the Company will utilize high-end
smart plants and capabilities in high-layer technology, HDI technology, and rigid-flex boards,
control the pace of product launch, develop strategic customers, and gradually form a scale
advantage; second, the Company will adjust the customer structure and continuously promote
customer base upgrading; third, the Company will create high-quality products through R&D,
improve the R&D system based on new products, new materials, and new technologies, and
effectively manage the transformation and utilization of technological achievements to continuously
enhance product competitiveness.
5. Mobile Internet
In 2024, the key tasks of the mobile internet business are twofold: First, the Company will
scientifically plan organizational structure and personnel allocation, enhance organizational
efficiency, and optimize cost expenses; second, the Company will improve the gross profit of
overseas mobile phone business and OEM business, and focus resources on overseas markets to
create core products.
6. Industrial parks
In 2024, the key tasks of the industrial park business are to focus on assets revitalization and the
operation of existing properties, provide space carriers, cash flow, and profit support for industrial
layout and enable the development of the core business; at the same time, to fully revitalize park
assets, integrate high-quality operating assets of the industrial park business, and unlock the value
of existing park assets.
7. Investment
In 2024, the key tasks of industrial investment operations are to strengthen post-investment
management, and enhance value preservation and appreciation and orderly withdrawal of invested
projects to achieve capital inflow.
In 2024, the key tasks of venture capital operations are as follows: On one hand, the Company will
continue exploring the operating model of commercial real estate operators, seek additional value
for properties, and achieve breakthroughs in operational business; on the other hand, it will continue
cost reduction and expense control efforts, optimize staffing, and control expenditure.
XII Communications with the Investment Community such as Researches, Inquiries and
Interviews
√ Applicable □ Not applicable
Way Type Index to main
Main discussions and
of of information
Date Place Communication party materials provided
com commu communicate
by the Company
muni nicatio d

35
Konka Group Co., Ltd. Annual Report 2023

catio n party
n
Conferenc
e Room
Record Form for
of Office Huaxi Securities: Chen Yulu, Li Lin
6 January Instituti Investor Relations
Building Other Dacheng Fund: Gao Yi, Hou
2023 on Activities (No.:
of Konka Yuelong, Ma Yueyang, and Shu Sijia
2023-01)
R&D
Building
Earni
Conferenc
ngs Investors participating in the 2022
e Room
com Annual Results Presentation of Record Form for
of Office
muni Individ Konka Group Co., Ltd. via the Investor Relations
11 April 2023 Building
catio ual Shenzhen Stock Exchange Activities (No.:
of Konka Interaction Easy website
n 2023-02)
R&D (http://irm.cninfo.cn)
confe
Building
rence
Conferenc
e Room
Huaxi Securities: Chen Yulu, La Record Form for
of Office
Instituti Ruimeng Investor Relations
14 April 2023 Building Other
on China Life Asset Management: Li Activities (No.:
of Konka
Shanshan 2023-03)
R&D
Building
Conferenc
e Room One-
China Merchants Securities: Peng Record Form for
of Office on-
Instituti Zihao Investor Relations
15 May 2023 Building one
on Century Securities: Zheng Binbin, Activities (No.:
of Konka meeti
Luo Peng 2023-04)
R&D ng
Building
Conferenc
e Room One- http:// c
Record Form for
of Office on- ninfo.cn/
3 November Instituti Industrial Securities: Yan Investor Relations
Building one new/index
2023 on Changming Activities (No.:
of Konka meeti
2023-05)
R&D ng
Building
Yufu Electronics: Zeng Jie, Zhang
Fengwei, Gao Kai
China Merchants Capital: Wang
Ruifan, Tang Yunsheng
Huaxi Securities: Chen Yulu, La
Ruimeng
Cinda Securities: Luo Anyang, You
Chongqin
Ziyin
g Konka One-
Shanghai United Assets and Equity Record Form for
Optoelect on-
7 November Instituti Exchange: Guan Yanhong, Wang Investor Relations
ronic one
2023 on Xiaoli Activities (No.:
Technolo meeti
China Equity: Wang Peng 2023-06)
gy Co., ng
China Merchants Securities: Peng
Ltd.
Zihao
Shenwan Hongyuan: Liu Jialing
First Capital: Li Zezi
Central China Securities: Ou
Yangjun
Chuanshi Investment: Ren Zhengbin
China Film Investment: Deng

36
Konka Group Co., Ltd. Annual Report 2023

Zhongwen
TF Securities: Zong Yan
Conferenc
e Room One-
Record Form for
of Office on-
9 November Instituti China Southern Asset Management: Investor Relations
Building one
2023 on Jiang Youjie Activities (No.:
of Konka meeti
2023-07)
R&D ng
Building
Conferenc
e Room Investors participating in theKonka
Group Co., Ltd. 2023 Collective Record Form for
of Office
15 November Individ Reception Day of Listed Companies Investor Relations
Building Other
2023 ual of Shenzhen Districts via the Activities (No.:
of Konka Quanjing Roadshow website 2023-08)
R&D (http://rs.p5w.net/)
Building
Conferenc
e Room One-
Record Form for
of Office on-
17 November Instituti Investor Relations
Building one Topsperity Securities: Jin Wenxi
2023 on Activities (No.:
of Konka meeti
2023-09)
R&D ng
Building
Conferenc
e Room One-
Record Form for
of Office on-
6 December Instituti CITIC Securities: Wang Weida, Investor Relations
Building one
2023 on Pang Lili, Tan Libo Activities (No.:
of Konka meeti
2023-10)
R&D ng
Building
Conferenc
e Room One-
Record Form for
of Office on-
21 December Instituti Investor Relations
Building one Cinda Securities: Luo Angyang
2023 on Activities (No.:
of Konka meeti
2023-11)
R&D ng
Building
Conferenc
e Room One-
HengBang ZhaoFeng Private Record Form for
of Office on-
29 December Instituti Securities Fund Management (Shen Investor Relations
Building one
2023 on Zhen): Wang Wenbo, Duan Activities (No.:
of Konka meeti
Yingsheng, Hao Lei, Wang Guanhua 2023-12)
R&D ng
Building

XIII Implementation of the Action Plan for "Double Improvement of Quality and Return" 
Has the company disclosed an action plan for "dual improvement of quality and return".
□ Yes √ No




37
Konka Group Co., Ltd. Annual Report 2023




Part IV Corporate Governance
I General Information of Corporate Governance

In the Reporting Period, strictly in accordance with the Company Law, Securities Law of the PRC,
Code of Corporate Governance for Listed Companies, Share Listing Rules of Shenzhen Stock
Exchange and the relevant rules and regulations of the CSRC, the Company timely amended the
internal control systems such as the Articles of Association and Administrative Method on
Provision of External Financial Aids as well as Management System on Investors Relationship,
continuously perfected the corporate governance structure and standardized the Company’s
operation. By the end of the Reporting Period, the actual conditions of corporate governance
basically met the requirements of the regulatory documents in respect of corporate governance
structure of listed companies issued by CSRC.

(I) Shareholders and the Shareholders’ General Meeting

The Company drew up Articles of Association and Rules for Procedure of Shareholders’ General
Meeting, ensured that all shareholders, in particular medium and minor shareholders, enjoy legal
rights and equal standard. In the Reporting Period, the Company was able to publish
announcement on Shareholders’ General Meetings in advance, convened Shareholders’ General
Meeting with strictly accordance to relevant requirements, so as to enable the shareholders have
their rights of information to the Company’s material issues and the participation rights. In 2023,
the Company convened four Shareholders’ General Meeting in total. The Company seriously did
well the registration, arrangement and organization work for the Shareholders’ General Meeting
before the circular on convening the Shareholders’ General Meeting being published at the
designated media. The Company convened the Shareholders’ General Meeting at the office
address of the Company strictly in line with relevant stipulations, which was convenient in traffic,
and the shareholders could attend the session in accordance with their actual situation. The
Company’s directors, supervisors and senior management staffs made explanations and
description for the shareholders’ questions and advices at the session.

(II) Controlling shareholder and the Company

In the Reporting Period, the controlling shareholders and actual controllers strictly regulated its
behavior and complied with laws in exercising their rights and obligations, not bypassed the
Shareholders’ General Meeting to intervene in the Company’s decisions and operations directly or
indirectly. The Company was separated from the controlling shareholders and actual controllers in
aspects of its business, personnel, assets, organ and finance, the Board of Directors, Supervisory
Committee and the internal departments of the Company functioned independently.
38
Konka Group Co., Ltd. Annual Report 2023


(III) Directors and the Board of Directors

The number and structure of the Board Bureau of the Company were in compliance with laws and
regulations. The Company drew up Rules for Procedures of the Board Bureau, so as to ensure a
high efficient operation and scientific decision-making of the Board Bureau; the Company has set
up Independent Director System and engaged three independent directors. In the Reporting Period,
the number of directors and composition of the Board of Directors of the Company as well as the
procedure of selection was in accordance with the requirements of the rules and laws as well as
Articles of Association. The Company set up four special committees, which were Financial Audit
Committee, Nomination Committee, Remuneration & Appraisal Committee, Strategy Committee
to provide profession opinion for the decision of the Board of Directors. All the directors carried
out their work, fulfilled their duties and scrupulously attended the Board sessions in accordance
with Rules of Procedure for the Board of Directors, Rules for Independent Directors, etc. 15
Board sessions were convened by the Company during the Reporting Period, which brought the
decision-making mechanism of the Board of Directors into full play.

(IV) Supervisors and supervisory committee

The Company has established Rules for Procedures of the Supervisory Committee, persons and
structure of the Supervisory Committee was in line with relevant laws and statutes, supervisors
can earnestly perform their responsibilities, independently and efficiently executed supervision
and check responsibilities with a spirit of being responsible to shareholders. In the Reporting
Period, the number of supervisors and composition of the Supervisory Committee of the
Company as well as their selecting procedure complied with the laws, regulations. In accordance
with the requirement of the Rules of Procedure for Supervisory Committee, the supervisors
performed their duties in an earnest and responsible manner, and exercised their functions of
supervision on the decision-making procedure of the Board of Directors, resolutions and the
Company’s operation by law, and took effective supervision over the Company’s significant
events, related transactions, financial position, as well as the legality and compliance on duty
performance by the directors, president and other senior management members.

(V) Performance Appraisal and Incentive & Restrictive Mechanism

The senior management staffs of the Company were recruited on an open basis and in compliance
with the laws and regulations. The Company has established and gradually improved the
performance appraisal standards and incentive & restrictive mechanism for senior management
staffs, so as to attract qualified personnel, and ensure the stability of senior management staffs.

(VI) Interested parties


39
Konka Group Co., Ltd. Annual Report 2023


During the Reporting Period, the Company fully respected and maintained the legal rights of the
interested parties, and realized the balance of interest among the parties such as society,
shareholders and employees, etc. Meanwhile, the Company protected the rights of the employees,
promoted the environmental protection, and actively joined in the social benefit and charitable
cause so as to jointly promote sustainable and healthy development.

(VII) Information disclosure and transparency

The Company formulated the Management System for Investor Relations and the Management
System for Information Disclosure and the Rules on Implementation for Information Disclosure
Committee. And the Company designated specially-assigned person to take charge of the
information disclosure, and designated specialized department to be responsible for the reception
of shareholders and consultation, actively carrying out the work for investor relations
management to ensure equal access to information for all shareholders. The Company strictly
complied with the requirements of the laws, regulations and the Articles of Association to disclose
its information as required by the relevant regulations on an timely, honest, complete and accurate
basis, to ensure the accurate and timely information disclosure, while ensure equal access to
information for all shareholders.

(VIII) Non-standard governance

1. Type of non-standard governance matter existed

There was a situation that the Company disclosed undisclosed information.

2. Types and cycle of undisclosed information provided to the principal shareholder

The Company provided monthly financial data to the principal shareholder.

3. Reasons for the related non-standard governance existed

The Company submitted the undisclosed information such as monthly financial data to the
substantial shareholder directly administrated by the State-owned Assets Supervision and
Administration Commission of State Council in accordance with the managerial demand of
SASAC.

4. Impact on Company independence

After the self-inspection, the Company kept strictly to the requirements of “Notice on
Strengthening the Supervision of Listed Company’s Provision of Non-public Information to
Substantial Shareholders and Actual Controllers”, and “Supplementary Notice Concerning
Strengthening the Supervision of the Non-standard Governance Behavior of Listed Company's
Provision of Non-public Information to Substantial Shareholders and Actual Controllers”, while
40
Konka Group Co., Ltd. Annual Report 2023


stringently performed the necessary procedures. There existed no circumstances of substantial
shareholder’s abuse of control and disclosure of undisclosed information for insider trading, and
hence, it has no impact on the independence of the Company.

(IX) Development of company’s special governance activity, formulation and
implementation of registration and management system for the insider of inside information

1. Establishment and perfection of management system for the insider of inside information

To further standardize the company’s inside information management behavior, strengthen the
company’s inside information confidential work, and maintain the fair principle of information
disclosure, the Company established Inside Information and Insider Management System in
Konka Group Co., Ltd. The Company strictly implements the system in the information
disclosure work, meanwhile, carefully implements the Company’s inside information and insider
registration and management method, registers the insider of inside information, and report to
Shenzhen Stock Exchange and Shenzhen Security Regulatory Bureau according to the provision.

The Company conducted the special inspection on the inside information management during the
occurrence of major event in 2023 and the annual report in 2023. After the inspection, the Company
actually realized that the insider of inside information strictly kept the confidential provision, did
not disclose, divulge and spread the Company’s inside information to the outside, the insider of
inside information did not buy and sell the Company’s share with the inside information before
disclosing the major sensitive information influencing the Company’s share price, there was no
investigation and rectification from the regulatory department during the editing, review and
disclosure of regular report and major event. Management Rules for Inside Information and Insider
Management System of Konka Group Co., Ltd. was implemented in place and controlled effectively.

2. Establishment and implementation of external information user’s management system
To strengthen the management on the reporting of Company’s inside information, the Company establishes
insider information reporting mechanism, and regulates the inside information reporting range, reporting
procedure, responsibility division and other matters according to Security Law in People’s Republic of China,
Information Disclosure Management Method in Listed Company, Inside Information and Insider Management
System in Konka Group Co., Ltd. and other related provisions in the laws, regulations and regulatory
documents.

The Company conducted the special inspection on the inside information reporting status during the occurrence
of major event in 2023 and the annual report in 2023. After the inspection, the Company’s inside information
reporting status complies with the requirements in Management Rules for Inside Information and Insider
Management System of Konka Group Co., Ltd. Management Rules for Inside Information and Insider
Management System of Konka Group Co., Ltd. was implemented in place and controlled effectively.


41
Konka Group Co., Ltd. Annual Report 2023


Indicate by tick market whether there is any material incompliance with laws, regulations and
provisions issued by the CSRC governing the governance of listed companies.

□ Yes √ No

No such cases in the Reporting Period.

II The Company’s Independence from Its Controlling Shareholder and Actual Controller in
Business, Personnel, Asset, Organization and Financial Affairs

During the Reporting Period, the company was fully separated from the controlling shareholders in
terms of business, staff, assets, organs, and finance, which owned independent legal representative
and main status in market competition and had independent accounting, as well as possessed
complete business and the ability of independent operation to face the market.

(I) Business: the Company owned complete supply, R&D, production and sales system, possessed
ability of independent operation to face the market by independent operation, independent
accounting & decision-making, independent bearing responsibility & risks, didn’t subject to the
interference and control of the controlling shareholders, actual controller and its controlled
enterprises.

(II) Staff: the Company was independent of the controlling shareholder with respect to labor,
personnel and salaries management. The Company owned independent team of staffs, the senior
management staff, financial personnel and business personnel received their remunerations in the
Company, and they were full-time staffs of the Company without holding any post, except directors
and supervisors, in shareholders’ units or other related enterprises.

(III) Assets integrity: the Company had production and operation premises completely separated
from the controlling shareholder, and the unaffiliated and integral assets structure, as well as the
independent production system, ancillary production system, the ancillary facilities, house property
right and other assets, which also possessed independent procurement and sales system.

(IV) Organ: the Company had its own functional organs adapting to the needs of self-development
and market competitiveness, all the functional organs were separated from each other in aspects of
personnel, office premises and management rules, etc., there existed no particulars about any
shareholders, other units or individuals interfering the organ setting of the Company.

(V) Finance: the Company established an independent finance department with full-time financial
personnel and an independent finance and accounting system, and independently carried out the
financial work in line with requirements of relevant accounting rules; the Company promulgated
sound financial management system to operate independently without sharing common accounts


42
Konka Group Co., Ltd. Annual Report 2023


with the controlling shareholder, related enterprise, other units or individual; the Company
independently declared and paid the tax by laws without particulars on paying taxes together with
shareholders’ units.

III Horizontal Competition

□ Applicable √ Not applicable

IV Annual and Special General Meetings Convened during the Reporting Period

1. General Meeting Convened during the Reporting Period

Investor
Date of the
Meeting Type participation Disclosure date Meeting resolutions
meeting
ratio

Extraordinar Resolutions of the 1st
The 1st Extraordinary
y General 24.4741％ 13 March 2023 14 March 2023 Extraordinary General
General Meeting of 2023
Meeting Meeting of 2023

Annual
The 2022 Annual General Resolutions of the 2022
General 24.3675％ 19 June 2023 20June 2023
Meeting Annual General Meeting
Meeting

Extraordinar Resolutions of the 2nd
The 2nd Extraordinary
y General 24.2222％ 28 August 2023 29 August 2023 Extraordinary General
General Meeting of 2023
Meeting Meeting of 2023

Extraordinar Resolutions of the 3rd
The 3rd Extraordinary 21 December 22 December
y General 24.1082％ Extraordinary General
General Meeting of 2023 2023 2023
Meeting Meeting of 2023


2. Special General Meetings Convened at the Request of Preferred Shareholders with
Resumed Voting Rights
□ Applicable √ Not applicable

V Directors, Supervisors, Senior Management and Staff

1. Basic Information


Decrea Other
Increas
Begin se in incre
Incu e in the Ending
ning the ase/d Reason
Office mbe Start of End of Reporti shareho
Name Gender Age shareh Reporti ecrea for
title nt/Fo tenure tenure ng lding
olding ng se change
rmer Period (share)
(share) Period (shar
(share)
(share) e)


Directo Incu
Liu r, 25 July 25 July
Male 53 mbe 0 0 0 0 0
Fengxi Chairm 2022 2025
nt
an of
43
Konka Group Co., Ltd. Annual Report 2023

the
Board

Incu
Directo 25 July 25 July
Yao Wei Male 49 mbe 0 0 0 0 0
r 2022 2025
nt
Incu
Zhou Directo 25 July 25 July
Male 45 mbe 0 0 0 0 0
Bin r 2022 2025
nt

Emplo
Incu
Ye yee 25 July 25 July
Male 54 mbe 0 0 0 0 0
Xingbin directo 2022 2025
nt
r


Indepe
Incu
ndent 25 July 25 July
Liu Jian Male 58 mbe 0 0 0 0 0
directo 2022 2025
nt
r


Indepe
Wang Incu
ndent 25 July 25 July
Shuguan Male 53 mbe 0 0 0 0 0
directo 2022 2025
g nt
r


Indepe
Deng Incu
ndent 25 July 25 July
Chunhu Female 61 mbe 0 0 0 0 0
directo 2022 2025
a nt
r


Superv
isor,
chairm
an of Incu
Cai 25 July 25 July
Male 51 the mbe 0 0 0 0 0
Weibin 2022 2025
Superv nt
isory
Commi
ttee

Incu
Yang Superv 25 July 25 July
Male 55 mbe 0 0 0 0 0
Guobin isor 2022 2025
nt

Emplo
Incu
yee 25 July 25 July
Li Jun Male 53 mbe 0 0 0 0 0
supervi 2022 2025
nt
sor

Incu
Zhou Preside 18 May 18 May
Male 45 mbe 0 0 0 0 0
Bin nt 2023 2026
nt

Executi Incu
Cao 18 May 18 May
Male 46 ve vice mbe 0 0 0 0 0
Shiping 2023 2026
preside nt



44
Konka Group Co., Ltd. Annual Report 2023

nt


Vice Incu
Li 18 May 18 May
Male 56 preside mbe 0 0 0 0 0
Hongtao 2023 2026
nt nt


Board Incu
Wu 18 May 18 May
Male 49 Secreta mbe 0 0 0 0 0
Yongjun 2023 2026
ry nt

Incu
Li 18 May 18 May
Male 51 CFO mbe 0 0 0 0 0
Chunlei 2023 2026
nt

Vice Incu
18 May 18 May
Yang Bo Male 54 preside mbe 0 0 0 0 0
2023 2026
nt nt


Vice Incu
Lin 18 May 18 May
Male 53 preside mbe 0 0 0 0 0
Hongfan 2023 2026
nt nt


Total 0 0 0 0 0


Indicate by tick mark whether any directors or supervisors left or any senior management were
disengaged during the Reporting Period

□ Yes √ No

Change of Directors, Supervisors and Senior Management

□ Applicable √ Not applicable

2. Biographical Information

1. Non-independent Director

Liu Fengxi, male, ethnic group of Han, born in 1971, was the Chairman of the Board with a master
degree. He once worked as the Chief of the Operation Management Center of Konka Group,
Assistant to President, Vice President, President & Secretary of the Party Committee, Chairman of
the Board & Secretary of the Party Committee of Konka Group, Vice GM and the member of the
Standing Committee of OCT Group. And now he is acting as the Deputy Secretary of the Party
Committee, Director, GM of OCT Group, Deputy Chairman of the Board and
Deputy Secretary of CPC of Shenzhen Overseas Chinese Town Co., Ltd., Vice President of
China Tourism Association (concurrently) and the Board Chairman of Konka Group.



Yao Wei, Director, male, ethnic group of Han, bachelor degree, was born in 1975. He once served

45
Konka Group Co., Ltd. Annual Report 2023


as Chief Accountant in CGN Wind Power Co., Ltd., Chief Accountant in CGN New Energy
Holdings Co., Ltd., Vice GM (in charge) of Financial Department, GM of Financial Department,
GM of Finance and Asset Management Department in China General Nuclear Power Corporation.
Currently, he acts as the director of China Everbright Bank Co., Ltd., the member of the Standing
Committee and Chief Accountant in Overseas Chinese Town Holdings Company and Director of
Konka Group.



Zhou Bin, male, ethnic group of Han, born in 1979, was the Secretary of the Party Committee,
CEO, director and president of the Company with a bachelor degree. He once served as the
director assistant, deputy director and director in Operating Management Center in Konka Group,
assistant of the president in the Board of Directors & Director in Operating Management Center
in Konka Group and President of Konka Group. Now, he acts as the Chairman of Shenzhen
Konka Investment Holdings Co., Ltd. and Shenzhen Konka Capital Equity Investment
Management Co., Ltd. and Director, Secretary of the Party Committee and President & CEO in
Konka Group.


Ye Xingbin, male, Han Chinese, born in 1970, was the Employee Director of the Company and
holds a bachelor's degree. He previously served as a Special Director at the Overseas Chinese Town
Holdings Company (OCT Group), and was a member of the Standing Committee of the
Qiandongnan Prefecture of Guizhou Province, the Deputy Governor of the Prefecture Government,
the Director of Shenzhen Huakang Chuangzhan Technology Holding Group Co., Ltd., and the
Deputy Party Secretary of the Party Committee and Director of Konka Group. He is currently
serves as the Vice Chairman of the Federation of Trade Unions Committee of Overseas Chinese
Town Holdings Company, Deputy Party Secretary of the Party Committee, Chairman of the Labor
Union and Employee Director of Konka Group.



2. Independent Director

Mr. Liu Jian, Independent Director, is a Han Chinese man born in 1966 and holds a master's degree.
His notable professional experiences include having served as an editor at the Foreign Economic
and Trade University Press and the China Business Times, and also as an independent director at
Wuhan Tianyuan Environmental Protection Co., Ltd., Hisense Visual Technology Co., Ltd. and
Founder Technology Group Corporation. In his current capacity, Mr. Liu Jian holds various
positions in different organizations. He serves as the chief editor and president of the Economic
Observer Newspaper, presides over the Beijing Jingguan Cultural Media Co., Ltd. as its chairman,
and functions as a director and general manager of Shandong Economic Observer Newspaper

46
Konka Group Co., Ltd. Annual Report 2023


Media Co., Ltd. Additionally, he takes on the role of an independent director of Konka Group.



Wang Shuguang, Independent Director, male, ethnic group of Han, was born in 1971 with a
doctoral degree. He served as Independent Director of Yantai Rural Commercial Bank, Jinan Rural
Commercial Bank, Ningbo Yuyao Rural Commercial Bank and SDIC Zhonglu, and External
Supervisor and Convener of the Board of Supervisors of Industrial Bank Co., Ltd. Currently, he
serves as Professor and Doctoral Supervisor in the School of Economics of Peking University,
Executive Deputy Director of the Institute for Cultural Industries, Peking University and
Independent Director of Konka Group.



Deng Chunhua, Independent Director, female, ethnic group of Han, born in 1963 with a degree of
MBA, accounting professor and a Certified Public Accountant in China (non-practicing member).
She served as Chief Accountant and Project Manager of WUYIGE Certified Public Accounts LLP.
She has been teaching in the School of Accounting of Zhongnan University of Economics and Law
as Assistant Lecturer, Lecturer, Associate Professor and Professor. And she onced acted as the
Independent Director of Zhe gian g Goldensea Hi Tech Co., Ltd. Currently, she serves as a Professor
in the School of Accounting of Zhongnan University of Economics and Law, the Independent
Director of Zhe gian g Jinke Tom Culture Industry Co., Ltd., Wolong Electric Group Co., Ltd.,
Zhe gian g You giường Material Technology Co., Ltd. (non-listed company) and Konka Group.



3. Supervisor

Cai Weibin, Chairman of the Supervisory Committee, male, ethnic group of Han, Master’s Degree,
was born in 1973. He once served as vice GM, deputy secretary of the Party Committee and
Secretary of Committee for Discipline Inspection in Chongqing OCT Industry Development Co.,
Ltd. Vice Minister of Discipline Inspection and Supervision and Director of the Discipline
Inspection Office in Overseas Chinese Town Holdings Company Currently, he acts as GM of Legal
Compliance Department in Overseas Chinese Town Holdings Company and Chairman of the
Supervisory Committee of Konka Group.



Yang Guobin, Supervisor, male, was born in 1969, Bachelor’s Degree, Certified Public Accountant.
He served as Deputy Director of the Finance Department of OCT Group, CFO of Konka Group and
Deputy Director of the Corporate Management Department of OCT Group. Currently, he serves as


47
Konka Group Co., Ltd. Annual Report 2023


a full-time Director in OCT Group and Supervisor of Konka Group.



Li Jun, male, ethnic group of Han, born in 1971, was an employee supervisor of the Company with
a bachelor degree. Formerly worked as the Senior Manager of the Financial Department in
Shenzhen Telecommunications Technology Co., Ltd., the Senior Manager and assistant to the chief
and deputy director of Auditing and Legal Affairs Department in Konka Group, Office Director of
discipline inspection commission of Konka Group, and employee supervisor of Konka Group.
Presently working as the deputy secretary of discipline inspection commission of Konka Group,
General Counsel, Chief of the Supervision, Audit and Legal Affairs Center and Employee
Supervisor of Konka Group.



4. Senior Executive

Zhou Bin, male, ethnic group of Han, born in 1979, was the Secretary of the Party Committee, CEO,
director and president of the Company with a bachelor degree. He once served as the director
assistant, deputy director and director in Operating Management Center in Konka Group, assistant
of the president in the Board of Directors & Director in Operating Management Center in Konka
Group and President of Konka Group. Now, he acts as the Chairman of Shenzhen Konka
Investment Holdings Co., Ltd. and Shenzhen Konka Capital Equity Investment Management Co.,
Ltd. and Director, Secretary of the Party Committee and President & CEO in Konka Group.



Cao Shiping, male, Han nationality, born in 1978, was the executive vice president of the Company
with a master degree. Once served as the GM in Jinzhou Branch and Tianjin Branch of Konka
Group Multi-media, GM in Multi-media Business Division Customer Cooperation Department,
vice GM in Multi-media Marketing Business Division, vice GM in Multi-media Business Division
and GM in Marketing Center, GM in Multi-media Business Division, GM in Internet Business
Division and vice president of Konka Group. Now he acts as the executive vice president in Konka
Group.



Li Hongtao, male, Han nationality, born in 1968, was the vice president of the Company with a
bachelor degree. He successively took the post such as Assistant to GM, GM, Chairman of the
Board and GM of Shenzhen Konka Telecommunication Technology Co., Ltd and Assistant to
President and vice president of Konka Group etc. He now is acting as Vice President of Konka


48
Konka Group Co., Ltd. Annual Report 2023


Group.



Wu Yongjun, male, Han nationality, born in 1975, was the Board Secretary with a master degree.
Formerly he worked as the senior manager of Secretariat, assistant to the chief, vice chief, chief,
Securities Affairs representative and Board Secretary in Konka Group. Presently he is working as
the secretary of the board of directors of Konka Group.



Li Chunlei, male, Han nationality, born in 1973, was the CFO of the Company with a master degree.
Once served as the director in Real Estate Business Division in Konka Group, vice GM and GM in
Kunshan Kangsheng Investment Development Co., Ltd., deputy director (preside the work) and
director in Strategic Development Center, GM in Financial Center and GM in Asset Settlement
Center and CFO of Konka Group. Now he acts as the CFO in Konka Group.



Yang Bo, male, Han nationality, born in 1970, was the vice president of the Company with a master
degree. Once served as the director in Shenzhen Cable Television Education Financial Channel,
director in the market sales and support region of US Tailiyang Communications Company, GM in
Program Operating Department in Shenzhen Topway Video Communication Co., Ltd., director and
GM in Shenzhen Tianhua Century Media Co., Ltd., GM in Market Sales Center in Shenzhen
Topway Video Communication Co., Ltd. and vice president of Konka Group. Now he acts as the
vice president in Konka Group.



Lin Hongfan, male, Han nationality, born in 1971, was the vice president of the Company with a
MBA degree. Once served as the vice GM in Multi-media Marketing Business Divisionof Konka
Group, GM of Color TV Strategy and Supply Chain Management Center, executive vice GM and
GM in Multi-media Business Division of Konka Group, vice president and president assistant of
Konka Group. Now he acts as the vice president in Konka Group.



Offices held concurrently in shareholding entities:

√Applicable □Not applicable

Office held in the End of Remuneration or
Name Shareholding entity Start of tenure allowance from
shareholding entity tenure
the shareholding

49
Konka Group Co., Ltd. Annual Report 2023

entity

Liu Director, Deputy Secretary
OCT Group 21 May 2021 Yes
Fengxi of CPC, GM

Deputy Chairman of the
Liu Shenzhen Overseas Chinese
Board, Deputy Secretary of 22 June 2021 No
Fengxi Town Co., Ltd.
CPC

Party Committee Standing
Yao Wei OCT Group Committee and Chief 1 July 2020 Yes
Accountant

Cai GM of Legal Compliance
OCT Group 1 December 2020 Yes
Weibin Department

Yang Full-time director in Board
OCT Group 7 March 2018 Yes
Guobin Office

1. Except the above situation, other directors, supervisors and senior management didn’t hold any position in the
shareholders’ units.
Notes
2. It is unknown the ending date of the posts of Mr. Liu Fengxi, Mr. Yao Wei, Mr. Cai Weibin and Mr. Yang
Guobin held in the shareholders’ units.


Offices held concurrently in other entities:

√Applicable □Not applicable

Remuneration or
Office held in End of
Name Other entity Start of tenure allowance from
the entity tenure
the entity

Liu Fengxi China Tourism Association Vice president 20 December 2022

Yao Wei China Everbright Bank Co., Ltd. Director 5 February 2021

Chief editor and
Liu Jian The Economic Observer 16 April 2001 Yes
president

Shandong Economic Observer
Liu Jian Director, GM 28 September 2022
Media Co., Ltd.

Beijing Economic Observer Chairman of the
Liu Jian 25 May 2018
Culture Media Co., Ltd. Board

Wang School of Economics of Peking
Professor Yes
Shuguang University

Wang Institute for Cultural Industries of
Deputy director
Shuguang Peking University

Zhongnan University of
Deng Chunhua Professor Yes
Economics and Law




50
Konka Group Co., Ltd. Annual Report 2023


Zhe gian g Jinke Culture Industry Independent
Deng Chunhua 8 July 2020 Yes
Co., Ltd. director

Independent
Deng Chunhua Wolong Electric Group Co., Ltd. 7 September 2020 Yes
director

Zhe gian g You giường Material
Independent
Deng Chunhua Technology Co.,Ltd. (non-listed 27 October 2020 Yes
director
company)


Notes None


Punishments imposed in the recent three years by the securities regulator on the incumbent
directors, supervisors and senior management as well as those who left in the Reporting Period:

□ Applicable √ Not applicable

3. Remuneration of Directors, Supervisors and Senior Management

Decision-making procedure, determination basis and actual payments of remuneration for directors,
supervisors and senior management:

The salary of directors and supervisors of the Company should be submitted to the shareholders
meeting for review after the approval and consent by the Board of directors. Referred to the salary
level of the Directors and Supervisor of the domestic listed companies of same industry, the salary
proposal of the Director and Supervisors of the Company which approved and reviewed by the 2nd
Extraordinary General Meeting of 2015 were as follows: (1) the basic annual salary standard of the
Board Chairman was of RMB1.2 million, the subsidy standard of other Directors (excluding the
Directors serving in the Company) was of RMB0.3 million per person per year and the subsidy
standard of the Supervisors (excluding the Employee Supervisors) was of RMB0.2 million per
person per year; which was executed since June 2015. (2) the above standards were all pre-tax
standard with the individual income tax burdened in person as well as the Company withheld and
remitted tax.

Other treatment for independent directors: travel expense when they went to attend the Board
sessions, Supervisory sessions or Shareholders’ General Meetings and the expenses when they were
performing their duties as stipulated in the relevant regulations and the Articles of Association and
other relevant systems, all these could be reported for deletion. The Board of Directors determined
the remuneration of senior management staffs referring to the following factors: a. scope of jobs and
responsibility shouldered; b. actual profit of the Company; c. market remuneration level in the same
industry and same area.

The salary of senior management of the Company should be submitted to the Board of Directors for
review after the review by the Remuneration and Appraisal Committee under the Board.

51
Konka Group Co., Ltd. Annual Report 2023


The remuneration for the year 2023 disclosed by directors, supervisors and senior management has
been reviewed by the Remuneration and Appraisal Committee under the Board.

Remuneration of the directors, supervisors and senior management of the Company during the
Reporting Period
Unit: RMB'0,000


Total before-
Incumb tax
Gen Any remuneration from
Name Age Office title ent/For remuneration
der related party
mer from the
Company


Liu Mal Incumb
53 Director, Chairman of the Board 0 Yes
Fengxi e ent

Mal Incumb
Yao Wei 49 Director 0 Yes
e ent

Mal Secretary of CPC, CEO, Director, Incumb
Zhou Bin 45 102.06 No
e President ent


Ye Mal Deputy Secretary of CPC, Employee Incumb
54 70.66 No
Xingbin e Director ent

Mal Incumb
Liu Jian 58 Independent director 30 No
e ent

Wang Mal Incumb
53 Independent director 30 No
Shuguang e ent

Fe
Deng Incumb
mal 61 Independent director 30 No
Chunhua ent
e

Cai Mal Chairman of the Supervisory Incumb
51 0 Yes
Weibin e Committee ent


Yang Mal Incumb
55 Supervisor 0 Yes
Guobin e ent

Mal Incumb
Li Jun 53 Employee Supervisor 115.30 No
e ent

Cao Mal Incumb
46 Executive vice president 73.76 No
Shiping e ent


Li Mal Incumb
56 Vice president 70.66 No
Hongtao e ent


Wu Mal Incumb
49 Board Secretary 70.66 No
Yongjun e ent




52
Konka Group Co., Ltd. Annual Report 2023

Mal Incumb
Li Chunlei 51 CFO 70.66 No
e ent
Mal Incumb
Yang Bo 54 Vice president 70.66 No
e ent

Lin Mal Incumb
53 Vice president 70.66 No
Hongfan e ent


Total -- -- -- -- 805.08 --

Other notes
□Applicable Not applicable

VI Performance of Duty by Independent Directors in the Reporting Period

1. Board Meeting Convened during the Reporting Period

Date of the
Meeting Disclosure date Meeting resolutions
meeting

The 6th
Meeting of
Resolutions of the 6th Meeting of the 10th Board of
the 10th 13 January 2023 17 January 2023
Directors
Board of
Directors

Resolutions of the 7th Meeting of the 10th Board of
Directors;
Resolutions on Applying for General Credit Limit from
Shenzhen Branch, China Guangfa Bank Co., Ltd.;
Resolutions on Applying for General Credit Limit from
China Construction Bank (CCB);
Resolutions on Applying for General Credit Limit from
Agricultural Bank of China (ABC);
Resolutions on Applying for General Credit Limit from
Shanghai Pudong Development Bank (SPD bank);
The 7th
Meeting of Resolutions on Applying for General Credit Limit from
the 10th 24 February 2023 25 February 2023 Bank of Beijing (BOB);
Board of
Directors Resolutions on Applying for General Credit Limit from
Industrial Bank Co., Ltd.;
Resolutions on Applying for General Credit Limit from
Hengfeng Bank;
Resolutions on Applying for General Credit Limit from
China Resources Bank of Zhuhai Co., Ltd. (CRBC);
Resolutions on Applying for General Credit Limit from
China CITIC Bank;
Resolutions on Applying for General Credit Limit from
Bank of Hangzhou;
Resolutions on Applying for General Credit Limit from

53
Konka Group Co., Ltd. Annual Report 2023

Shenzhen Branch, Hua Xia Bank Co., Ltd.;
Resolutions on Applying for General Credit Limit from
Shenzhen Rural Commercial Bank (SRCB);
Resolutions on Applying for General Credit Limit from
China Minsheng Bank;
Resolutions on Applying for General Credit Limit from
China Bohai Bank Co., Ltd.

Resolutions of the 8th Meeting of the 10th Board of
Directors
Resolutions on Business Plan and Financial Budget
Plan for 2023;
Resolutions on Letter of Commitment on Performance
The 8 th for 2023 for the Company’s Management Team;
Meeting of
Resolutions on 2023 Donation Plan;
the 10th 24 March 2023 28 March 2023
Board of Resolutions on A New Fixed Assets Investment Plan for
Directors 2023;
Resolutions on A New Equity Investment Plan for
2023;
Resolutions on Revising the Remuneration
Management Measures for Heads of Konka Group Co.,
Ltd.

The 9th
Meeting of
Resolutions of the 9th Meeting of the 10th Board of
the 10th 31 March 2023 4 April 2023
Directors
Board of
Directors

The 10th
Meeting of
Resolutions of the 10th Meeting of the 10th Board of
the 10th 27 April 2023
Directors
Board of
Directors

The 11th
Meeting of
Resolutions of the 11th Meeting of the 10th Board of
the 10th 18 May 2023 19 May 2023
Directors
Board of
Directors

The 12th
Meeting of
Resolutions of the 12th Meeting of the 10th Board of
the 10th 26 May 2023 27 May 2023
Directors
Board of
Directors

The 13th
Meeting of Resolutions of the 13th Meeting of the 10th Board of
14 June 2023
the 10th Directors
Board of


54
Konka Group Co., Ltd. Annual Report 2023

Directors

The 14th
Meeting of
Resolutions of the 14th Meeting of the 10th Board of
the 10th 10 July 2023 11 July 2023
Directors
Board of
Directors

The 15th
Meeting of
Resolutions of the 15th Meeting of the 10th Board of
the 10th 10 August 2023 11 August 2023
Directors
Board of
Directors

Resolutions of the 16th Meeting of the 10th Board of
Directors;

The 16th Resolutions on Adjusting Remunerations of Senior
Meeting of Management;
the 10th 25 August 2023 Resolutions on Applying for General Credit Limit from
Board of the Hongkong and Shanghai Banking Corporation
Directors Limited (HSBC);
Resolutions on Applying for General Credit Limit from
Shenzhen Rural Commercial Bank (SRCB)

The 17th
Meeting of
20 September Resolutions of the 17th Meeting of the 10th Board of
the 10th
2023 Directors
Board of
Directors

Resolutions of the 18th Meeting of the 10th Board of
Directors
Resolutions on Revising the Compliance Management
Implementation Rules of Konka Group Co., Ltd.
(Revised in 2023);
Resolution on Applying for General Credit Limit from
The 18th Bank of China;
Meeting of
the 10th 30 October 2023 Resolution on Applying for General Credit Limit from
Board of Industrial and Commercial Bank of China (ICBC);
Directors
Resolution on Applying for General Credit Limit from
Bank of Communications;
Resolution on Applying for General Credit Limit from
Bank of Ningbo;
Resolution on Applying for General Credit Limit from
China Zheshang Bank Co., Ltd.

The 19th
Meeting of
Resolutions of the 19th Meeting of the 10th Board of
the 10th 4 December 2023 6 December 2023
Directors
Board of
Directors


55
Konka Group Co., Ltd. Annual Report 2023


The 20th
Meeting of
Resolutions of the 20th Meeting of the 10th Board of
the 10th 11 December 2023
Directors
Board of
Directors


2. Attendance of Directors at Board Meetings and General Meetings

Attendance of directors at board meetings and general meetings


The director
Total number Board
Board Board failed to
of board Board meetings
meetings meetings the attend two General
meetings the meetings attended by
Director attended director consecutive meetings
director was attended on way of
through a failed to board attended
eligible to site telecommuni
proxy attend meetings
attend cation
(yes/no)

Liu Fengxi 15 1 14 0 0 No 0

Yao Wei 15 1 14 0 0 No 0

Zhou Bin 15 1 14 0 0 No 4

Ye Xingbin 15 1 14 0 0 No 4

Liu Jian 15 1 14 0 0 No 0

Wang
15 1 14 0 0 No 0
Shuguang

Deng
15 1 14 0 0 No 0
Chunhua


Why any director failed to attend two consecutive board meetings:

Not applicable

3. Objections Raised by Directors on Matters of the Company

Indicate by tick mark whether any directors raised any objections on any matter of the Company.

□ Yes √ No

No such cases in the Reporting Period.

4. Other Information about the Performance of Duty by Directors

Indicate by tick mark whether any suggestions from directors were adopted by the Company.

√ Yes □ No


56
Konka Group Co., Ltd. Annual Report 2023


Suggestions from directors adopted or not adopted by the Company:

During the reporting period, the directors of the company actively attended the relevant meetings,
carefully reviewed the proposals, gave full play to the role of "setting strategy, making decisions,
and preventing risks", and had an in-depth understanding of the development of semiconductor and
other businesses, as well as the company's operating conditions, internal control construction and
the implementation of the resolutions of the Board of Directors meeting.

Directors of the Company put forward the constructive advices by use of their own professional
knowledge towards the internal management. For example, to actively promote the refinement of
the Company’s development strategy plan and implementation thereof, to provide advices on
expanding the Company’s business, and to pay attention to risks control of the Company such as the
cash flow and accounts receivable management. The Company carefully adopted the advices from
the Directors and constantly improved and enhanced the management level of the Company.

VII Performance of Duties by Specialized Committees under the Board during this
Reporting Period

Other
Numb informat Details
er of ion about
Commi Member meeti Conven Important opinions and about issues
Content with
ttee s ngs ed date suggestions raised the
conve perform objections
ned ance of (if any)
duty

1. The arrangement of the audit
work on the 2022 Annual Report
of the Company was approved.

2. It was consented that the
annual financial statements shall
be provided to the CPA for the
The 2022 Financial
annual audit.
statements and the
Arrangement of the 2022 3. It is required that ShineWing
6
Annual Audit submitted Certified Public Accountants
Deng January
by the Company’s (special general partnership)
Chunhu 2023
financial center (issued by appointed by the Company
Audit a, Yao the Company prior to the should carry out the auditing in
Commi Wei, 9 entry of the annual CPA) strict accordance with the
ttee Wang requirements of the China
Shuguan Practice Standards for Certified
g Public Accountants, and should
promptly communicate with the
Committee if major problems are
discovered.

2022 Annual Internal No objections were raised
20 Audit Report of Konka regarding the following
Februar Group and Konka documents submitted by the
y 2023 Group’s Internal Audit Company: 2022 Annual Internal
Quality Self-assessment Audit Report of Konka Group and
Report submitted by the Konka Group’s Internal Audit

57
Konka Group Co., Ltd. Annual Report 2023

Company Quality Self-assessment Report.

The CPAs for annual
audit were engaged for No objection was made to the
the discussion and review 2022 annual financial statements
10
of the Company's of the Company preliminarily
March
financial statements after audited by ShineWing Certified
2023
they have issued Public Accountants (special
preliminary audit general partnership).
opinions.

1. The 2022 annual audit
Communications were
performed by ShineWing
made with the Internal
Certified Public Accountants
Audit Department of the
(special general partnership) was
Company; the 2022
satisfying. 2. No objection was
annual audit performed
made to the 2022 Audit Report
by ShineWing Certified
14 issued by ShineWing Certified
Public Accountants
March Public Accountants (special
(special general
2023 general partnership). 3. It was
partnership) was
proposed that ShineWing
appraised; the 2022 Audit
Certified Public Accountants
Report reviewed and
(special general partnership) be
retention of the
retained for further service as the
accounting firm for 2023
audit institution of the Company's
was deliberated.
2023 annual financial statements.

2023 Q1 financial No objection was made to the
27 April
statements of the 2023 Q1 financial statements of
2023
Company the Company.


2023 Internal Audit Plan
26 May of Konka Group No objection was made to the
2023 submitted by the 2023 Internal Audit Plan of
Company Konka Group submitted by the
Company.

Rehiring ShineWing
Make a proposal to rehire
Certified Public
ShineWing Certified Public
Accountants (special
1 Accountants (special general
general partnership) as
August partnership) as the audit firm and
the audit firm and internal
2023 internal control audit firm for the
control audit firm for the
company’s 2023 financial
company’s 2023 financial
statements.
statements.

25 2023 interim financial No objection was made to the
August statements of the 2023 interim financial statements
2023 Company of the Company.

30 2023 Q3 financial No objection was made to the
October statements of the 2023 Q3 financial statements of
2023 Company the Company.

Remun Wang 1. Letter of Commitment 1. The Letter of Commitment on
eration Shuguan on Performance for 2023 Performance for 2023 for the
and g, Yao 14 for the Company’s Company’s Management Team
Apprais Wei, Ye 2 March Management Team was approved and was agreed to
al Xingbin, 2023 be submitted to the Board for
Commi 2. Remunerations of deliberation.
Liu Jian, directors, supervisors and
ttee Deng senior management as 2. Remunerations of directors,

58
Konka Group Co., Ltd. Annual Report 2023

Chunhu disclosed supervisors and senior
a management as disclosed in the
3. Revised Remuneration Company's 2022 Annual Report
Management Measures were true. Remunerations of
for Heads of Konka directors, supervisors and senior
Group Co., Ltd. management as disclosed were
consistent with the Company's
salary management policy and no
violation was found.

3. The revised Remuneration
Management Measures for Heads
of Konka Group Co., Ltd. was
agreed to be submitted to the
Board for deliberation.


Adjusting Agree to adjust remuneration
15
standard of senior management
August remunerations of and submit it to the Board of the
2023 senior management Company for deliberation

Approve the reappointment of
Mr. Zhou Bin as the President of
Liu Jian, the Company, Mr. Cao Shiping
Yao as the Executive Vice President
Wei, of the Company, Mr. Li Hongtao,
Nomin Zhou Yang Bo and Mr. Lin Hongfan as
ation Bin, 8 May Change of senior Vice President of the Company,
1
Commi Wang 2023 management Mr. Wu Yongjun as Board
ttee Shuguan Secretary of the Company, Mr. Li
g, Deng Chunlei as CFO of the Company,
Chunhu and endorse the submission of
a this proposal to the Company’s
Board of Directors for
deliberation.


VIII Performance of Duty by the Supervisory Committee

Indicate by tick mark whether the Supervisory Committee found any risk to the Company during its
supervision in the Reporting Period.

□ Yes √ No

The Supervisory Committee raised no objections in the Reporting Period.

IX Employees

1. Number, Functions and Educational Backgrounds of Employees

Number of in-service employees of the Company as the parent
1,621
at the period-end


Number of in-service employees of major subsidiaries at the
12,485
period-end


Total number of in-service employees at the period-end 14,106




59
Konka Group Co., Ltd. Annual Report 2023


Total number of paid employees in the Reporting Period 14,106


Number of retirees to whom the Company as the parent or its
0
major subsidiaries need to pay retirement pensions


Functions


Function Employees


Production 7,335


Sales 3,405


Technical 1,479


Financial 609


Administrative 1,278


Total 14,106


Educational backgrounds


Educational background Employees


Master and above 365


Bachelor 3,171


Junior college 3,808


High school and below 6,762


Total 14,106


2. Employee Remuneration Policy

The Company promulgated its remuneration system with the operating strategy of serving for the
enterprise development and enhancement, and the principle of deciding the remuneration according
to the post, business performance and capabilities, as well as the market competitiveness and
internal fairness. And it decided the employee’s remuneration level according to its business
earnings, the posts and fulfillment of the business performance of the employee.

3. Employee Training Plans

The Company adhered to the people-oriented and paid special attention to cultivate the talents.
Surrounded by the actual strategic business development, the Company actively organized and

60
Konka Group Co., Ltd. Annual Report 2023


carried out various training activities, and continuously perfected its talents cultivation system, as
well as further enhanced the employee’s professional skills and overall quality.

In 2023, under the new development strategy of "One Axis, Two Wheels, and Three Growth
Drivers," the Company upheld the principle of Party leadership in talent management. With the
implementation of lean management as a prerequisite, the Company continued to perform tasks
from three aspects: "Driving strategy implementation, supporting business transformation, and
coordinating talent development".

Focusing on the project operation system of "Three Tiers and Seven Brands", Konka open classes
have been organized throughout the year for all employees of the Company; and organized and
carried out the new employee’s training projects respectively for the graduates from campus
recruiting and personnel from social recruitment. Meanwhile, the Company continued to strengthen
its professional development efforts and empower business growth by conducting ongoing
professional training for marketing, research and development, manufacturing, and other
departments.

4. Labor Outsourcing

□ Applicable √ Not applicable

X Profit Distributions (in the Form of Cash and/or Stock)

How the profit distribution policy, especially the cash dividend policy, was formulated, executed or
revised in the Reporting Period:

√ Applicable □ Not applicable

The cash dividend policy of the Company was clearly stated in its Articles of Association, with
specific and clear dividend standards and ratios. The relevant decision-making procedure and
mechanism were sound; the independent directors faithfully performed their duties and played their
due role; and the non-controlling interests were able to fully express their opinion and desire and
their legal rights and interests were fully protected. The Company strictly followed the cash
dividend policy in its Articles of Association, and the cash dividend payout of the Company was in
line with its Articles of Association and the relevant resolution of the Shareholders’ Meeting.

According to the requirements of the Listed Company Supervision Guideline No. 3-Listed
Companies’ Cash Dividend issued by the CSRC, the Company has revised the dividend payout
policy in its Articles of Association, further clarifying the priority and proportion of cash dividend
in dividend payouts. In order to further normalize its shareholder return mechanism, push forward
the establishment of a scientific, sustained and stable shareholder return mechanism, enhance the


61
Konka Group Co., Ltd. Annual Report 2023


transparency and operability of decision-making for its dividend payout policy, and effectively
protect the legal rights and interests of public investors.

Special statement about the cash dividend policy


In compliance with the Company’s Articles of Association and resolution of general meeting Yes


Specific and clear dividend standard and ratio Yes


Complete decision-making procedure and mechanism Yes


Independent directors faithfully performed their duties and played their due role Yes


Specific reasons and the next steps it intends to take to enhance the investor return level if the
N/A
Company did not pay cash dividend:


Non-controlling interests are able to fully express their opinion and desire and their legal
Yes
rights and interests are fully protected


In case of adjusting or changing the cash dividend policy, the conditions and procedures
N/A
involved are in compliance with applicable regulations and transparent


Indicate by tick mark whether the Company fails to put forward a cash dividend proposal for
shareholders despite the facts that the Company has made profits in the Reporting Period and the
profits of the Company as the parent distributable to shareholders are positive.

□ Applicable √ Not applicable

Final Dividend Plan for the Reporting Period

□ Applicable √ Not applicable

No such cases in the Reporting Period.

XI Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures for
Employees

□ Applicable √ Not applicable

No such cases in the Reporting Period.

XII Establishment and Execution of the Internal Control System for the Reporting Period

1. Establishment and Execution of the Internal Control System

The Company has established and improved the Company's internal control system in accordance
with the regulations of the China Securities Regulatory Commission and the Shenzhen Stock
Exchange, following the basic principles of internal control, and on the basis of the Company's

62
Konka Group Co., Ltd. Annual Report 2023


actual situation. The Company's Financial Audit Committee, and Supervision, Audit and Legal
Affairs Center follow the guidance of value management, seek the goal of strengthening risk
management and control, continuously enhance audit supervision and internal control evaluation,
thereby scrutinizing and evaluating the Company's internal control management. The Company's
2023 Annual Internal Control Self-Assessment Report comprehensively, factually and accurately
reflects the actual situation of the Company's internal control. During the Reporting Period, the
Company had no major or significant deficiencies in its internal control.

2. Material Internal Control Weaknesses Identified for the Reporting Period

□ Yes √ No

XIII Management and Control over Subsidiaries by the Company for the Reporting Period

Integration Countermeasur Settlement Follow-up
Subsidiary Integration plan Problem
progress es taken progress settlement plan


N/A N/A N/A N/A N/A N/A N/A


XIV Internal Control Self-Evaluation Report or Independent Auditor’s Report on Internal
Control

1. Internal Control Self-Evaluation Report

Disclosure date of the internal control self-evaluation report 2 April 2024


Index to the disclosed internal control self-evaluation report http:// cninfo.cn/new/index


Evaluated entities’ combined assets as % of consolidated total assets Over 90.00%


Evaluated entities’ combined operating revenue as % of consolidated
Over 90.00%
operating revenue


Identification standards for internal control weaknesses


Weaknesses in internal control not related to
Type Weaknesses in internal control over financial reporting
financial reporting


Those with the following characteristics should be recognized The following signs indicated there may exist
as great defect: (1) found out there were malpractices of the great defect among the internal control of the
Directors, Supervisors and Senior Executives of the Company non-financial report: (1) serious violations of
that formed significant influences on the financial report; (2) national laws and regulations in business
Nature the Company revised the published financial report and operations; (2) frequent exposure of negative
standard revised the great misstatements caused by the malpractices or news in the media, causing significant damage to
the mistakes; (3) CPA found out there was great misstatement the company's reputation; (3) departure of the
of the current financial report while didn’t found during the core management team in droves or serious
operating process of the internal control; (4) the supervision of turnover of personnel in key positions; and (4)
the internal control by the Finance Audit Committee and the lack of systematic control of important

63
Konka Group Co., Ltd. Annual Report 2023

internal audit institution of the Company was invalid; (5) not businesses or systematic failure of the system;
yet revised the great defect after the reasonable period as and (4) great deficiencies identified in internal
which was discovered among the internal control assessment; control evaluations were not rectified in a timely
(6) the significant business lacked of systematic control or the manner.
systematic control was invalid.. Those with the following
characteristics should be recognized as significant defect: (1) The following signs indicated there may exist
not yet chosen or applied the accounting polices according to significant defect among the internal control of
the generally accepted accounting standards; (2) not yet the non-financial report: (1) negative news
constructed the anti-spam process or control measures; (3) as occurred rather frequently which caused rather
for the accounts disposal of the unconventional or special big harm to the Company’s reputation; (2) the
transactions, there was no corresponding control mechanism outflow of the key position personnel was rather
or execution or the existence of the corresponding supplement serious; (3) there was obvious defect among the
control; (4) there was one or multiple defects during the control system of the significant business; (4) the
control of the compile of the financial report at the period-end significant defect found among the internal
and could not reasonable guarantee the statement of the control assessment not yet be revised in time.
compiled financial report reach the real and accurate target; Other defects from the internal control hadn’t
(5) not yet revised the significant defect after the reasonable reached the recognition standards of the great
period as which was discovered among the internal control defect or significant defect should be recognized
assessment. as general defect.
Other defects from the internal control hadn’t reached the
recognition standards of the great defect or significant defect
should be recognized as general defect.


Great defect: potential misstatement amount≥1% of the gross
profit margin of the 2023 consolidated financial report of the
Company; significant defect: 0.5% of the gross profit margin
of the 2023 consolidated financial report of the Company Implement in accordance with the quantitative
Quantitativ
≤potential misstatement amount ＜ 1% of the gross profit criteria of internal control defect evaluation in
e standard
margin of the 2023 consolidated financial report of the financial statements
Company; general defect: potential misstatement amount ＜
0.5% of the gross profit margin of the 2023 consolidated
financial report of the Company.


Number of material weaknesses in internal control over financial reporting 0


Number of material weaknesses in internal control not related to financial
0
reporting


Number of serious weaknesses in internal control over financial reporting 0


Number of serious weaknesses in internal control not related to financial
0
reporting


2. Independent Auditor’s Report on Internal Control

√ Applicable □ Not applicable

Opinion paragraph in the independent auditor’s report on internal control


We considered that, in all the significant aspects, Konka Group maintained efficient internal control of the financial report
according to the C-SOX and the relevant regulations on 31 December 2023.


Disclosure of such report Disclosed

64
Konka Group Co., Ltd. Annual Report 2023


Disclosure date 2 April 2024


Index to such report disclosed http:// cninfo.cn/new/index


Type of the auditor’s opinion Unmodified unqualified opinion


Material weaknesses in internal control not related to financial
None
reporting


Indicate by tick mark whether any modified opinion is expressed in the independent auditor’s
report on the Company’s internal control.
□ Yes √ No
Indicate by tick mark whether the independent auditor’s report on the Company’s internal control
is consistent with the internal control self-evaluation report issued by the Company’s Board.

√ Yes □ No

XV Rectifications of Problems Identified by Self-inspection in the Special Action for Listed
Company Governance

The Company has completed the self-inspection in accordance with the relevant requirements of the
CSRC and rectified the problems identified in the self-inspection.




65
Konka Group Co., Ltd. Annual Report 2023




Part V Environmental and Social Responsibility
I Major Environmental Issues

Indicate by tick mark whether the Company or any of its subsidiaries is identified as a major
polluter by the environmental protection authorities.

√ Yes □ No

Policies and industry standards pertaining to environmental protection

The Company abides by environmental protection laws and regulations, such as the Environmental
Protection Law of the People’s Republic of China, Water Pollution Prevention and Control Law of
the People’s Republic of China, Air Pollution Prevention and Control Law of the People’s Republic
of China, Noise Pollution Prevention and Control Law of the People’s Republic of China, Solid
Waste Pollution Prevention and Control Law of the People’s Republic of China, and others. The
water pollutant discharge standards include the Emission Standard of Water Pollutants for
Electroplating DB44/1597-2015 and the Water Pollutant Discharge Limit Standard of Guangdong
Province DB44/26-2001. The air pollutant emission standards include the Emission Standard of
Volatile Organic Compounds for Printing Industry DB44/815-2010, Emission Standard of
Electroplating Pollutants GB21900-2008, Emission Standard of Odorous Pollutants GB14554-93,
and Emission Control Standard of Volatile Organic Compounds for Unorganized Emissions
GB37822-2019.

Status of Environmental Protection Administrative License

1. XingDa HongYe

XingDa HongYe received approval from the Zhongshan Environmental Protection Bureau to
establish and construct its facility in 2004 (ZH.H.J. [2004] No. 61), followed by subsequent
approvals under ZH.H.J.D. [2008] 06250 and ZH.H.J.D. [2010] 04469 in 2008 and 2010
respectively. After the original project of XingDa HongYe was put into production, it underwent
two acceptance stages: the first stage in 2008 (H.Y [2008] 02) and the second stage in 2012
(ZH.H.Y. Report [2012] 000092).

Xingda Hongye enlisted the services of the Zhongshan Environmental Protection Science Research
Institute in December 2012 to perform an environmental impact evaluation for their proposed
technological upgrade and expansion initiative. Following this, on 31 December 2012, the
Environmental Protection Bureau of Zhongshan City granted No. ZH.H.J.SH. (2012) 115 Approval
on the Environmental Impact Assessment Report for Technological Upgrade and Expansion


66
Konka Group Co., Ltd. Annual Report 2023


Program of GuangDong XingDa HongYe Electronic Co., Ltd. The scheme allowed for an increased
production of six-layer circuit boards, eight-layer and above circuit boards, and HDI boards, while
reducing the production of single-sided circuit boards. After the completion of the technological
upgrade and expansion, the production capacity was expected to reach a total of 200,000 square
meters for single-sided circuit boards per year, 250,000 square meters for double-sided circuit
boards per year, 300,000 square meters for four-layer circuit boards per year, 200,000 square meters
for six-layer circuit boards per year, 150,000 square meters for eight-layer and above circuit boards
per year, and 100,000 square meters for HDI boards per year. The technical renovation and
expansion project maintained the original plating equipment and process unchanged and added a
browning process to the existing production process. The additional plating capacity was all
outsourced. The technical renovation and expansion project began construction in 2013, was
completed in January 2018, and was commissioned from 10 February to 8 July 2018. The
construction of the expansion project met the requirements of the environmental impact report
approval and the conditions for environmental protection acceptance of the completed construction
project. In 2021, the national pollutant discharge permit of XingDa HongYe was renewed/replaced
with certificate number 91442000768405216J001P. In 2022, the national pollutant discharge permit
was changed, with certificate number 91442000768405216J001P. In 2023, the national pollutant
discharge permit was changed, with certificate number 91442000768405216J001P

2. Boluo Konka and Boluo Konka Precision

Boluo Konka Precision Technology Co., Ltd. was approved by the Huizhou Environmental
Protection Bureau in 2000 (H.S.H.J. [2000] No.23) and began production the same year. Its
pollution discharge permit number is 91441322721121283N001U.

Boluo Konka enlisted the services of Huizhou Environmental Science Research Institute in January
2007 to carry out an environmental impact assessment for its expansion project. No. H.SH.H.J.
[2007] J32 Approval on Environmental Impact Report for Boluo Konka’s Double-sided and
Multilayer Board Project was issued by the Environmental Protection Bureau of Huizhou City on 8
February 2007. The approved expansion project included the installation of electroplating
equipment and processes, allowing for an increase in production capacity to 1 million square meters
for single-sided circuit boards per year and 650,000 square meters for double-sided and multilayer
circuit boards per year. Upon completion, the project underwent an environmental protection
acceptance inspection, satisfying the requirements of the environmental impact assessment approval.
The company also obtained a pollutant discharge permit in the same year and underwent a name
change to Boluo Konka Precision Technology Co., Ltd. In 2020, the company received a national
pollutant discharge permit bearing certificate number 91441322799316208F001V. Boluo Konka
Precision will produce 1.65 million square meters per year of double-sided and multilayer circuit

67
Konka Group Co., Ltd. Annual Report 2023


boards, upon the Department of Ecology and Environment of Guangdong Province's approval of the
Report on the Environmental Impact of the Circuit Boards Expansion Project with an Annual
Capacity of 1 million square meters (Y.H.SH. [2023] No. 124) in June 2023.

The regulations for industrial emissions and the particular requirements for controlling pollutant
emissions those are associated with production and operational activities.

T
Num
Distrib ot Exc
ber
Name Type of Way ution al essi
Name of of Discharge Discharge Approved
of major of of di ve
major disch concentration/inte standards total
pollut polluta disch dischar sc disc
pollutants arge nsity implemented discharge
er nts arge ge ha harg
outle
outlets rg e
ts
e


PH, total
PH 6-9; total
copper, Total
copper≤0.3mg/L;
COD, discharge
COD≤50mg/L;
ammonia of major
ammonia
nitrogen, pollutants:
nitrogen≤8mg/L;
total COD
total
nitrogen, Disch 49 19.061250
Main nitrogen≤15mg/L
total arge 7, tons/year;
Pollutio dischar; total
phosphor of GB 21900-2008 83 ammonia ni
Xing n ge phosphorus≤0.5m
us, total statio Discharge 5 trogen
Da sources outlet g/L; total Non
cyanide, nary 1 Standard For to 3.0498
Hong of of the cyanide≤0.2mg/L e
total pollut Pollutants From ns tons/year;
Ye waste waste; total
nickel, ion Electroplating /y total
water water nickel≤0.1mg/L;
total iron, sourc ea nitrogen
station total iron≤2mg/L;
total es r 32.9792
total
aluminum tons/year;
aluminum≤2mg/L
,total
;
petroleum phosphorus
petroleum≤2mg/L
,0.2082
;suspended
suspende tons/year
solids≤30mg/L
d solids


Sulfuric Three sulfuric acid Emission Standard Total
2,
acid on the fume≤30mg/m3; for Electroplating discharge:
98
fume, roof of nitrogen Pollutants 2,986,560,0
6,
hydrogen Disch plant oxide≤200mg/m3 GB21900-2008 00 standard
56
chloride, arge 1, ten; hydrogen Air Emission cube/year
0,
formalde of on the chloride≤30mg/m Limits Table 5, (note: the
Xing Waste 00
hyde, statio roof of 3; hydrogen Emission standard total
Da gas 0 Non
hydrogen nary 14 plant 2 cyanide≤0.5mg/m of Volatile discharge is
Hong polluta st e
cyanide, pollut and 3; Organic not stated
Ye nts an
nitrogen ion one on TVOC≤90mg/m3 Compounds for in the latest
da
oxide, sourc the; Printing Industry version of
rd
ammonia, es roof of benzene≤1mg/m3 DB44/815-2010; national
cu
benzene, the; Guangdong Air discharge
be
toluene+x cantee toluene+xylene≤1 Pollutant Emission permit in
/y
ylene, n 5mg/m3; tin and Standard 2021; two
ea
TVOC, its DB44/27-2001 the exhaust

68
Konka Group Co., Ltd. Annual Report 2023

tin and its compounds≤8.5m Second Level r towers
compoun g/m3; Standard in the were added
ds, PM(dust)≤120mg Second Period, in 2021;
PM(dust) /m3 Emission standard calculated
for Odor Pollutants based on
(GB 14554-1993) air volume
Table 2 Standard in
environme
ntal impact
assessment
)


1. Discharge
standard of
discharge permit:
Discharge
Standard of
Electroplating
31
Water Pollutant for
1. Emission 8,
Electroplating
standard for 30
DB44/1597-2015
pollution 0
Table 1 Pearl
discharge to
River Delta
certificate: ns
Discharge COD is
copper≤0.5mg/L; /y
Standard; Water 19.2
COD≤80mg/L; ea
Pollutant tons/year;
ammonia r
PH, Discharge Limit ammonia
Disch nitrogen≤10mg/L N
copper, Main Standard of nitrogen is
Boluo arge; total ot
Pollutio COD, dischar Guangdong 2.4
Konka of nitrogen≤20mg/L e:
n ammonia ge Province tons/year;
and statio; total ac
sources nitrogen, outlet DB44/26-2001; 2. total Non
Boluo nary 1 phosphorus≤0.5m co
of total of the Local discharge nitrogen is e
Konka pollut g/L; 2. local rd
waste nitrogen, waste standard: BFBH 4.8
Precis ion emission in
water total water [2019] No. 58 tons/year.
ion sourc standard: g
phosphor station Document: COD, Note:
es copper≤0.5mg /L; to
us ammonia nitrogen, according
COD≤30mg/L; di
total phosphorus to the
ammonia sc
based on discharge
nitrogen≤1.5mg/ ha
"Environmental certificate
L; total rg
Quality Standards
nitrogen≤10mg/L e
for Surface Water
;total pe
GB3838-2002" 
phosphorus≤0.3m r
Category IV water
g/L mi
standard, the total
t
nitrogen discharge
reaches 50% of
discharge limit
requirement of the
corresponding
industry


Boluo Sulfuric Disch Six on sulfuric acid Emission Standard The total
Konka Waste acid arge the fume≤30mg/m3 for Electroplating discharge is
and fume, of roof of; nitrogen Pollutants not stated Non
gas poll 20 /
Boluo hydrogen statio plant oxide≤200mg/m3 GB21900-2008 in the latest e
utants
Konka chloride, nary 1,; hydrogen Air Emission version of
Precis formalde pollut fourtee chloride≤30mg/m Limits Table 5, national

69
Konka Group Co., Ltd. Annual Report 2023

ion hyde,hydr ion n on 3; TVOCogen Guangdong Air discharge
ogen sourc the chl; benzenen Pollutant Emission permit in
cyanide, es roof of chlori; Standard 2020
nitrogen plant 2 methylbenzenorid DB44/27-2001 the
oxide, and e≤30; Second Level
ammonia, one in dimethylbenzene Standard in the
benzene, sewag de≤30mg/; tin Second Period,
methylbe e and its Emission standard
nzene, station compounds≤8.5m for Odor Pollutants
TVOC, g/m3; PM (GB 14554-1993)
tin and its ( dust ) ≤≤stand Table 2 Standard,
compoun i; oil Emission standard
ds, PM fume≤2mg/m3 of cooking fume
(dust), oil (GB18483-2001)
fume


Treatment of pollutants

1. XingDa HongYe

All production equipment of Guangdong Xingda Hongye Electronics Co., Ltd. has been set up with
supporting environmental protection facilities according to the requirements of environmental
impact assessment. The discharge of wastewater, waste gas and noise as well as the disposal of all
solid wastes in the Company all met the standards during the Reporting Period.

The sewage treatment centre of Guangdong Xingda Hongye Electronics Co., Ltd. with an
investment of about RMB15 million was formally put into production in June 2007, and the
treatment capacity of the sewage treatment facility was 2,566 tons/day. After technical
improvement and expansion, the capacity increased to 2,900 tons/day with the treatment process
remaining unchanged. In 2022, RMB20 million was invested to increase a set of sewage treatment
facility which had been put into operation so as to ensure stable discharge of sewage up to standard.
Currently, the sewage treatment facilities are functioning well and the main pollutant discharge
meets the discharge standards and environmental assessment standards. The pollutants are
discharged to Fushachong after being treated at the self-built sewage treatment station.

2. Boluo Konka and Boluo Konka Precision

All production equipment of Boluo Konka and Boluo Konka Precision has been reported for
environmental assessment, review and approval. The supporting environmental protection and
pollution control facilities have been designed by pollutant type and concentration and effectively
operated in a targeted manner. During the Reporting Period, the discharge standards were met in
terms of industrial waste water, exhaust and factory noise, and all industrial waste generated was
disposed of in compliance with environmental laws and regulations.

Boluo Konka was established in 2000. To manufacture single sided PCBs, it invested

70
Konka Group Co., Ltd. Annual Report 2023


approximately RMB 5 million in constructing a sewage treatment station without the biochemical
treatment function and featuring a discharge capacity of 300 tons per day. In 2007, Boluo Konka
expanded its factory by starting the Phase II project, which was submitted for environmental
assessment as Boluo Konka PCB Double Sided and Multi-Layer PCB Project (later the project
owner was changed into Boluo Konka Precision). It spent about RMB 10 million on constructing
the Phase II sewage treatment station to add the biochemical treatment function with a discharge
capacity of 800 tons per day.

In 2019, according to the requirements in the documents issued by Boluo County Ecology and
Environment Bureau, the two sewage treatment stations of Boluo Konka and Boluo Konka
Precision must be upgraded towards higher standards. Through comprehensive assessment of the
professional environmental protection company, it was decided that the sewage treatment stations
of the said companies be combined to meet the upgrading requirements. Boluo County Ecology and
Environment Bureau approved the combination of the discharge outlets of the aforementioned
companies, and Boluo Konka would appoint Boluo Konka Precision to treat sewage. After the
combination of discharge outlets, the discharge capacity would reach 1,100 tons per day. The
aforementioned two companies spent about RMB 20 million between 2019 and 2020 on upgrading
the sewage treatment stations towards higher standards, and added industrial advanced processes
and treatment systems, such as RO water treatment, Fenton oxidation and MBR films. After the
technological improvements and expansion, the sewage treatment reaches 2,200 tons per day (with
a discharge capacity of 1,100 tons per day) with a reuse rate of more than 60%. At present, the
waste water treatment facilities are operating in good conditions; the discharge of major pollutants
meets the discharge standards. After advanced treatment of the water reuse facilities, the water
treated by the sewage stations that meets the standards will be reused in the plants, while the
remaining water will be discharged to the municipal pipe network to be processed by the urban and
rural water treatment factory before being discharged to the Gongzhuang Rive section of Dong gian g
River.

Environmental self-monitoring plan

1. XingDa HongYe

According to the requirements of the Environmental Protection Administration, Xingda Hongye
attaches great importance to environmental monitoring management. Thus, pursuant to the
Measures for Self-Monitoring and Information Disclosure of National Key Monitored Enterprises,
the Report on the Environmental Impact of the Technical Improvement and Expansion Project of
Guangdong Xingda Hongye Electronics Co., Ltd. and the reply opinions for environmental impact
assessment, the Company has formulated the Environmental Self-Monitoring Plan and reported to
the municipal environmental protection bureau for approval and record. It implements online
71
Konka Group Co., Ltd. Annual Report 2023


monitoring for the PH, COD and ammonia nitrogen pollutants discharged in wastewater through
real-time monitoring and an automatic frequency of every two hours, entrusts the qualified third-
party online monitoring equipment operation and maintenance institute to carry out periodic
maintenance on automatic monitoring equipment and monitoring data networking equipment, and
entrusts the qualified third-party monitoring unit to carry out the “three wastes” project monitoring.
All self-monitoring plan results will be reported and disclosed on public platforms on a periodic
basis.

In the case of normal production, the results will be updated on a daily basis, with online
monitoring data are disclosed in real time, or manual monitoring data on a monthly and quarterly
basis are disclosed every two hours.

2. Boluo Konka and Boluo Konka Precision

In accordance with the requirements of the environmental protection administration, Boluo Konka
and Boluo Konka Precision attach great importance to environmental monitoring management.
Thus, pursuant to the Measures for Self-Monitoring and Information Disclosure of National Key
Monitored Enterprises and requirements of the environmental impact assessment, they have
formulated the Environmental Self-Monitoring Plan and reported to the Municipal Environment
Protection Bureau for approval and record. Meanwhile, the PH and flow rate of wastewater
discharge are automatically monitored in real time, and the pollutants such as COD, ammonia
nitrogen and total phosphorus are automatically monitored online every two hours. Furthermore,
they entrust the qualified third-party online monitoring equipment operation and maintenance
institute to carry out periodic maintenance on automatic monitoring equipment and monitoring data
networking equipment, and and entrust the qualified third-party monitoring unit to carry out the
"three wastes" project monitoring, in line with the newly released national pollutant discharge
permit and the corporate self-monitoring plans that have been filed. All self-monitoring plan results
will be reported and disclosed on public platforms on a periodic basis. In the case of normal
production, the results will be updated on a daily basis, with online monitoring data are disclosed in
real time, or manual monitoring data on a monthly and quarterly basis are disclosed every two hours.

Contingency plan for emergent environmental incident

1. XingDa HongYe

In strict accordance with requirements of laws, regulations and relevant documents, such as Law of
the People’s Republic of China on Emergency Response and Interim Measures on Environmental
Emergency Response Plan, Guangdong Xingda Hongye Electronics Co., Ltd. has established risk
prevention measures and emergency response plans, kept its emergency equipment in a normal state,
formulated the Contingency Plan for Emergent Environmental Incident, and put on records at
72
Konka Group Co., Ltd. Annual Report 2023


Zhongshan Environmental Protection Bureau, Guangdong Province, record No.: 4420002017044M.
In addition, the Company conducts a drill of major environmental pollution incident on its factory
to enhance its emergency response capabilities for emergent environmental pollution incidents.

Furthermore, Guangdong Xingda Hongye Electronics Co., Ltd. has built an emergency pool (600m3,
underground pool of sewage treatment station) and set up a fire pool (500m3 and located on Floor 1
of Factory Building No. 2), which serve as temporary storage pools for exterior drainage or fire
drainage to eradicate accidental discharge of wastewater in the case of failed operation of the
sewage transmission pipeline or fire accident due to outage or other special circumstances. The
sewage transmission pipeline has been equipped with anti-corrosion and cathodic protection using
anti-corrosion pipes and carbon steel pipes. Pursuant to the new discharge standards, the related
discharge pipeline has been modified and the production department has been required to discharge
strictly in accordance with discharge standards to cut the costs of wastewater treatment. Different
types of wastewater are normally and properly treated through fine shunting. Personnel have been
specially arranged to manage the chemical liquid warehouse and exert reasonable control and
requirements over the liquid discharge by the plant and timely transportation of the liquid by
suppliers; emergency tools such as protective masks, boots and immiscible pumps have been
equipped.

2. Boluo Konka and Boluo Konka Precision

Boluo Konka and Boluo Konka Precision strictly abides by Emergency Response Law of the
People's Republic of China, Interim Measures for the Management of Emergency Plans for
Unexpected Environmental Incidents, other related laws and regulations as well as the requirements
of relevant documents. They have established risk prevention measures and emergency plans, such
as Emergency Plan for Unexpected Environmental Incidents, and have their emergency equipment
run in a normal status. In addition, they have filed with Boluo County Branch of Ecology and
Environment Bureau in Huizhou, Guangdong and Huizhou Ecology and Environment Bureau
respectively with the file No. 441322-2020-0073-M and 441301-2021-004-M. They organize all
staff to conduct drills for major environmental pollution incidents every year to improve their
ability for the emergency response to unexpected environmental pollution incidents.

Boluo Konka and Boluo Konka Precision are well equipped with all necessary facilities for
emergency response to unexpected incidents, including an emergency response pool of industrial
waste water (500m3, under the ground of the sewage treatment station) and a firefighting reservoir
(300m3, located beside the staff dormitory building). In the event of an unexpected environmental
incident, such as leakage or failure of a waste water transporting pipe, the emergency response pool
will prevent any accident of industrial waste water; in the event of a fire safety accident, the
firefighting reservoir will be put into use. All departments are required to discharge pollutants
73
Konka Group Co., Ltd. Annual Report 2023


strictly in accordance with pollutant discharge standards to reduce the costs of waste water
treatment by properly and reasonably dividing solution and waste water discharged from the plants.
The chemical warehouses are managed by designated personnel, with standard control and
requirements over the loading and unloading of chemical products by suppliers. In terms of
emergency response supplies, a full set of emergency rescue tools are prepared, including gas masks,
acid and alkaline resistant boots, gloves, goggles, safety ropes, helmets, fire sand and submersible
pumps.

Input in environmental governance and protection and payment of environmental protection tax

In 2023, nearly RMB58 million was input in environmental governance and protection and
RMB77,700of environmental protection tax was paid in total.

Measures taken to decrease carbon emission in the Reporting Period and corresponding effects

□ Applicable √ Not applicable

No administrative punishments were received in the Reporting Period due to environmental issues.

Reason for Impact of
Penalty Rectification
Subsidiary punishmen Violations production and
results measures
t operation


Projects
Failure to complete the
under
Jiangxi High environmental impact
constructio A fine of The relevant The relevant
Transparent assessment approval as
n not RMB0.4 production production lines
Substrate Material required by the
submitted 334 lines have been have been shut
Technology Co., environmental impact
for million shut down down
Ltd. assessment management
approval as
method.
required


Other environmental information that should be disclosed

1. XingDa HongYe

The environmental protection investment of Guangdong Xingda Hongye Electronics Co., Ltd. for
2023 was approximately RMB18 million, mainly used for the depreciation in Environmental
governance equipment and facilities, treatment of sewage, waste gas and solid waste, as well as the
maintenance and upgrading of environmental protection equipment.

2. Boluo Konka and Boluo Konka Precision

The environmental protection investment of Boluo Konka and Boluo Konka Precision for 2023 was
approximately RMB40 million, of which, RMB13 million was used for daily treatment of sewage
and waste gas and facility maintenance, RMB25 million was used for extension of sewage

74
Konka Group Co., Ltd. Annual Report 2023


treatment station (of new supporting plant) and RMB2 million was used for constructing the waste
gas exhaust tower of the new plant.

Other Environmental Information

According to the examination by the Company, the Company and its other holding subsidiaries are
not key pollutant units. All have faithfully implemented the laws and regulations related to
environmental protection, such as Environmental Protection Law of the People's Republic of China,
Water Pollution Prevention and Control Law of the People's Republic of China, Law of the People's
Republic of China on the Prevention and Control of Atmospheric Pollution, Law of the People's
Republic of China on Prevention and Control of Pollution From Environmental Noise, Law of the
People's Republic of China on the Prevention and Control of Environmental Pollution by Solid
Waste in the daily production and operation.

II Social Responsibility

The Company insists the principle of health, stability and sustainable development to benefit
shareholders and employees and satisfy customers. In pursuit of economic profits and protection of
shareholders’ profits, the Company is active in protecting legal rights of debtors and employees,
treating suppliers, customers and consumers in good faith, and participating in environmental
protection and community establishment for harmonious development of the Company and society.

1. To protect rights of shareholders and creditors

(1) The Company protects rights of shareholders

The Company insists protection of rights for all shareholders, especially equal status and legal
rights for medium and small shareholders, and make insurance of rights to be informed,
participation and vote.

The Company would perform all obligations of information disclosure to ensure timely, accurate
and complete information and strictly execute confidential system of registrar and insider
information to guarantee justice.

The Company pays attention to repay to shareholders, and insists mutual development with
investors. In the previous three years, the Company shares dividends with all shareholders. The
Company strict executes dividend policies regulated in Articles of Association. All cash dividends
comply with regulations in Articles of Association and requirements in shareholders’ conference.

(2) The Company protects rights of creditors

In full consideration of legal rights of creditors, the Company complies with strict business rules of
credit cooperation to guarantee legal rights of creditors. No damages upon rights of creditors
75
Konka Group Co., Ltd. Annual Report 2023


happened.

2. The Company performs responsibilities to suppliers and customers

(1) It is devoted to improve customer service quality.

The Company is insisting philosophy of customer orientation to strengthen customer service
management, service consciousness for employees, service levels and to protect rights for
customers. Through customer service hot-line, field visit and follow-up service, the Company has
set a good corporate image for customers.

(2) Be honest to suppliers

Following the principle of integrity and mutually beneficial cooperation, the Company keeps good
cooperative relations with suppliers at each level. The corporate principle is open, fair and impartial
to standardize procurement, protect suppliers’ legal rights and lay solid foundation for further
cooperation.

3. Be enthusiastic to social and public welfare undertakings

Based on the principle of appreciating and repaying the society, the Company has participated in all
kinds of activities for public welfare, cooperated with society, undertaken social responsibilities
actively and promoted harmonious development between enterprise and society.

4. Be responsible for employees

The Company insists the principle of people orientation to improve working environment, promote
occupational skills, provide opportunity and platform for development and growth and encourage
self upgradation and realization for employees. Mutual improvement for employees and enterprise
could be achieved.

(1) Be honest and law-abiding to protect legal rights for employees

The Company would strictly comply with laws and regulations in Labor Law and Labor Contract
Law to sign labor contract with employees with fair treatment in employment, payment, promotion,
training, demission and retirement. Also, the Company would pay all kinds of insurances and
housing fund for employees. Regular physical examination would be organized for each year. Any
problems found would require re-examination and consultation from a doctor.

The Company would improve living quality; enhance cohesive force and sense of belongings
through a series of safeguard measures.

(2) To protect occupational health for employees


76
Konka Group Co., Ltd. Annual Report 2023


The Company would establish and perfect training, safety assessment by security system to
guarantee the safety and occupational health for employees. On the other hand, by promotion of the
importance of safety, safety awareness would be rooted in the heart to make all employees abide by
safety standards and fully play subjective initiative in protecting self-occupational safety and
production safety.

(3) To promote occupational skills by diversified professional training

The Company has always paid great attention on diversified training for employees. On the one
hand, the Company would be meticulous in training of regular business and occupational skills and
carry out all requirements positively to improve professional levels by normal training management.
On the other hand, the Company would establish methods of self-training platform, training
instructor, theme training and lectures to provide colorful training activities. Besides the work,
professional and comprehensive quality would be fully promoted.

5. Be responsible for environment

The Company concerns about environmental changes and close relationships with environment by
creating low carbon economy in technical innovation, from green manufacturing, green products to
green industry circular economy. The Company would provide efforts in protecting global
ecological environment. In June 2012, subsidized products catalogue had been released jointly by
National Development and Reform Commission, Ministry of Industry and Information and Ministry
of Finance.

Subsequently, the Company would undertake all social responsibilities by improving strategic
management, sustainable development and enterprise economic efficiency. It would reattribute all
shareholders and would protect legal rights for creditors and employees. To be honest to suppliers
and customers, the Company would serve local economic development and participate in social
public welfare activities and environment protection. It would undertake all responsibilities in many
fields and make attributions to social, economic, and environmental sustainable development for a
socialism harmonious society.

III Consolidation and Expansion of Poverty Alleviation Outcomes, and Rural Revitalization

In 2023, the Company continued to actively purchase the agricultural and sideline products from
Tianzhu and Sansui counties in Guizhou Province under the "assistance by consumption" project.
The total amount spent on this project in 2023 amounted to RMB67,800. The Company held
donation ceremonies for "one-on-one" pairing assistance with students from Chengguan Third
Primary School in Sansui County, and for aesthetic education classrooms. A total of 100 Konka
"dream partners" donated a sum of RMB328,000. In October 2023, the Company paid visits to the

77
Konka Group Co., Ltd. Annual Report 2023


students receiving assistance. Representatives of the Company's assistance team engaged in "hand-
in-hand, face-to-face, and heart-to-heart" conversations with the students, providing them with
economic aid and material support to ensure their basic living needs were met.




78
Konka Group Co., Ltd. Annual Report 2023




Part VI Significant Events
I Fulfillment of Commitments

1. Commitments of the Company’s De Facto Controller, Shareholders, Related Parties and
Acquirers, as well as the Company Itself and Other Entities Fulfilled in the Reporting
Period or Ongoing at the Period-End

□ Applicable √ Not applicable

No such cases in the Reporting Period.

2. Where there Had Been an Earnings Forecast for an Asset or Project and the Reporting
Period Was still within the Forecast Period, Explain why the Forecast Has Been Reached
for the Reporting Period.

□ Applicable √ Not applicable

II Occupation of the Company’s Capital by the Controlling Shareholder or any of Its
Related Parties for Non-Operating Purposes

□ Applicable √ Not applicable

No such cases in the Reporting Period.

III Irregularities in the Provision of Guarantees

□ Applicable √ Not applicable




79
Konka Group Co., Ltd. Annual Report 2023


No such cases in the Reporting Period.

IV Explanations Given by the Board of Directors Regarding the Latest “Modified Opinion” 
on the Financial Statements

□ Applicable √ Not applicable

V Explanations Given by the Board of Directors, the Supervisory Board and the
Independent Directors (if any) Regarding the Independent Auditor's “Modified Opinion” 
on the Financial Statements of the Reporting Period

□ Applicable √ Not applicable

VI YoY Changes to Accounting Policies, Estimates or Correction of Material Accounting
Errors

√ Applicable □ Not applicable
On 30 November 2022, the Ministry of Finance issued Interpretation No. 16 for the Accounting
Standards for Business Enterprises, which stipulates the “accounting treatments for deferred
income taxes associated with assets and liabilities arising from a single transaction to which the
initial recognition exemption does not apply”, effective for the Company as of 1 January 2023.
For lease liabilities and right-of-use assets recognised at the beginning of the earliest period of
financial statement presentation in which the provision is first implemented that give rise to
taxable temporary differences and deductible temporary differences as a result of a single
transaction to which the provision applies, the Company has adjusted the cumulative effect to
retained earnings at the beginning of the earliest period of financial statement presentation and
other relevant financial statement items in accordance with the said provision and Accounting
Standard No. 18 for Business Enterprises—Income Tax.

VII YoY Changes to the Scope of the Consolidated Financial Statements

√ Applicable □ Not applicable

Please refer to 6. Changes in the Scope of Consolidated Financial Statements for the Reporting
Period of 2. Revenue and Costs of IV Core Business Analysis in Part III Operating Performance
Discussion and Analysis of this Report for details.

VIII Engagement and Disengagement of Independent Auditor

Current independent auditor

Name of the domestic independent auditor ShineWing Certified Public Accountants LLP


The Company’s payment to the domestic independent auditor
220
(RMB’0,000)



80
Konka Group Co., Ltd. Annual Report 2023


How many consecutive years the domestic independent auditor has
5 years
provided audit service for the Company


Names of the certified public accountants from the domestic
Tang Qimei, Liu Lihong
independent auditor writing signatures on the auditor’s report


How many consecutive years the certified public accountants have
3 years, 2 years
provided audit service for the Company


Name of the overseas independent auditor (if any) N/A


The Company’s payment to the overseas independent auditor
0
(RMB’0,000) (if any)


How many consecutive years the overseas independent auditor has
N/A
provided audit service for the Company (if any)


Names of the certified public accountants from the overseas
independent auditor writing signatures on the auditor’s report (if N/A
any)


How many consecutive years the certified public accountants have
N/A
provided audit service for the Company (if any)


Indicate by tick mark whether the independent auditor was changed for the Reporting
Period

□ Yes √ No

Independent auditor, financial advisor or sponsor engaged for the audit of internal controls:

√ Applicable □ Not applicable

The Company appointed ShineWing Certified Public Accountants LLP as the internal control
auditor in 2023 with RMB0.7 million (tax-exclusive) of payment for the internal control audit.

IX Possibility of Delisting after Disclosure of this Report

□ Applicable √ Not applicable

X Insolvency and Reorganization

□ Applicable √ Not applicable

No such cases in the Reporting Period.

XI Major Legal Matters

√ Applicable □ Not applicable


81
Konka Group Co., Ltd. Annual Report 2023


Index
Involved Executi to
Discl
amount Provisio Decisions and on of disclos
General information Progress osure
(RMB’0,000 n effects decision ed
date
) s inform
ation

Since Jiangxi Xinxin Jianan
Engineering Co., Ltd. (hereinafter
referred to as "Jiangxi Xinxin" ),
Jiangxi Shining Stone Technology
Development Company Limited
(hereinafter referred to as "Jiangxi
Shining Stone" ), Jiangxi Zhongyi
Decorative Materials Co., Ltd.
(hereinafter referred to as "Jiangxi
Zhongyi" ) failed to repay the loan
http://
and its interest to Jiangxi Branch The case is
c
of China Great Wall Asset reheard The case is The 25
ninfo.c
Management Co., Ltd. (hereinafter 31,375.8 No and in the reheard and in the case is June
om.cn/
referred to as “Jiangxi Branch of second second instance. in trial 2019 new/in
Great Wall Asset” ) who sued the instance.
dex
court for a judgment to repay the
loan of RMB300 million, default
penalty of RMB108,000 and
interest of RMB13.65 million, and
at the same time, nine guarantors
including Jiangxi Kangjia, Xinfeng
Microcrystalline and Nano
Microcrystalline were requested to
undertake joint and several liability
guarantee.

The case is
reheard and in the
Because of a dispute over a
first instance.
purchase and sales contract, the
Based on the
Company's subsidiary, Konka
principle of http://
Huanjia Environmental The case is
prudence, the 19 c
Technology Co., Ltd., sued Dalian reheard The
Company has Septe ninfo.c
Jinshunda Materials Recycling 9,383.08 No and in the case is
accrued mber om.cn/
Co., Ltd., Huanjia Group, Wang first in trial
corresponding 2020 new/in
Bingde, Zhang Xueyin and Wang instance.
impairment dex
Renping, requiring them to return
reserves in
prepayment and pay liquidated
accordance with
damages.
accounting
policies.

The case is
reheard and in the
Because of a dispute over a first instance.
purchase and sales contract, the Based on the
Company's subsidiary, Konka principle of http://
The case is
Huanjia, sued Dalian Xinjie prudence, the 19 c
reheard The
Renewable Resources Co., Ltd., Company has Septe ninfo.c
9,383.08 No and in the case is
Huanjia Group, Wang Bingde, accrued mber om.cn/
first in trial
Zhang Xueyin and Wang Renping, corresponding 2020 new/in
instance.
requiring them to return impairment dex
prepayment and pay liquidated reserves in
damages. accordance with
accounting
policies.

Because of a dispute over a The case is The case is 19 http://
2,307.9 No The
purchase and sales contract, the reheard reheard and in the Septe c
case is
Company's subsidiary, Konka and in the first instance. mber ninfo.c

82
Konka Group Co., Ltd. Annual Report 2023

Huanjia, sued Dalian Tian xing first Based on the in trial 2020 om.cn/
Renewable Resources Co., Ltd., instance. principle of new/in
Huanjia Group, Wang Bingde, prudence, the dex
Zhang Xueyin and Wang Renping, Company has
requiring them to return accrued
prepayment and pay liquidated corresponding
damages. impairment
reserves in
accordance with
accounting
policies.

The case is
Because of a dispute over a reheard and in the
purchase and sales contract, the first instance.
Company's subsidiary, Konka Based on the
Huanjia Environmental principle of http://
The case is
Technology Co., Ltd., sued prudence, the 19 c
reheard The
Huanjia Mingtai (Dalian) Company has Septe ninfo.c
3,302.64 No and in the case is
Renewable Resources Co., Ltd., accrued mber om.cn/
first in trial
Huanjia Group, Wang Bingde, corresponding 2020 new/in
instance.
Zhang Xueyin and Wang Renping, impairment dex
requiring them to return reserves in
prepayment and pay liquidated accordance with
damages. accounting
policies.

The case is
Because of a dispute over a reheard and in the
purchase and sales contract, the first instance.
Company's subsidiary, Konka Based on the
Huanjia Environmental principle of http://
The case is
Technology Co., Ltd., sued Lankao prudence, the 19 c
reheard The
Shunjia Renewable Resources Company has Septe ninfo.c
3,358.8 No and in the case is
Recycling Co., Ltd., Huanjia accrued mber om.cn/
first in trial
Group, Wang Bingde, Zhang corresponding 2020 new/in
instance.
Xueyin and Wang Renping, impairment dex
requiring them to return reserves in
prepayment and pay liquidated accordance with
damages. accounting
policies.

The case is
Because of a dispute over a reheard and in the
purchase and sales contract, the first instance.
Company's subsidiary, Konka Based on the
Huanjia Environmental principle of http://
The case is
Technology Co., Ltd., sued Henan prudence, the 19 c
reheard The
Shunhenghui Renewable Company has Septe ninfo.c
3,337.29 No and in the case is
Resources Recycling Co., Ltd., accrued mber om.cn/
first in trial
Huanjia Group, Wang Bingde, corresponding 2020 new/in
instance.
Zhang Xueyin and Wang Renping, impairment dex
requiring them to return reserves in
prepayment and pay liquidated accordance with
damages. accounting
policies.

Because of a dispute over a The case is
purchase and sales contract, the reheard and in the
Company's subsidiary, Konka first instance. http://
The case is
Huanjia Environmental Based on the 19 c
reheard The
Technology Co., Ltd., sued Henan principle of Septe ninfo.c
3,358.08 No and in the case is
Jiaxin Renewable Resources prudence, the mber om.cn/
first in trial
Recycling Co., Ltd., Huanjia Company has 2020 new/in
instance.
Group, Wang Bingde, Zhang accrued dex
Xueyin and Wang Renping, corresponding
requiring them to return impairment

83
Konka Group Co., Ltd. Annual Report 2023

prepayment and pay liquidated reserves in
damages. accordance with
accounting
policies.

The case is
Because of a dispute over a reheard and in the
purchase and sales contract, the first instance.
Company's subsidiary, Konka Based on the
Huanjia Environmental principle of http://
The case is
Technology Co., Ltd., sued Henan prudence, the 19 c
reheard The
Shengxiang Renewable Resources Company has Septe ninfo.c
2,922 No and in the case is
Recycling Co., Ltd., Huanjia accrued mber om.cn/
first in trial
Group, Wang Bingde, Zhang corresponding 2020 new/in
instance.
Xueyin and Wang Renping, impairment dex
requiring them to return reserves in
prepayment and pay liquidated accordance with
damages. accounting
policies.

The case is retired
and is pending.
As the bills held by the Company Based on the
failed to be paid upon maturity, the principle of
http://
Company filed a lawsuit with the prudence, the
19 c
court, requesting the latter to order The case is Company has The
Septe ninfo.c
Wuhan Jialian Agricultural 20,000 No retired and accrued case is
mber om.cn/
Technology Development Co., is pending. corresponding in trial
2020 new/in
Ltd. to pay the aforesaid bills and impairment
dex
corresponding interest to the reserves in
Company. accordance with
accounting
policies.

Because of a dispute over a
purchase and sales contract, the The Company
Company's subsidiary, Dongguan won and the case
Konka Electronic Co., Ltd. filed a is in execution.
lawsuit with Shenzhen Nanshan Based on the
District People's Court, requesting principle of http://
The
the latter to order Dong Guan Gao prudence, the c
The case is case is 1
Neng Polymer Limited Company, Company has ninfo.c
9,010.1 No in in June
Wang Dong, Shenzhen Xinlian accrued om.cn/
execution. executio 2021
Xingyao Trading Co., Ltd., corresponding new/in
n.
Shenzhen Jinchuan Qianchao impairment dex
Network Technology Co., Ltd., reserves in
Puning Junlong Trading Co., Ltd., accordance with
Huang Zhihao to pay the overdue accounting
payment and corresponding policies.
liquidated damages.

The case is
Because of a dispute over a reheard and in the
purchase and sales contract, the first instance.
Company's subsidiary, Konka Based on the
Huanjia Environmental principle of http://
The case is
Technology Co., Ltd., sued prudence, the c
reheard The 1
Zhe gian g Jiade Renewable Company has ninfo.c
3,562.89 No and in the case is June
Resources Recycling Co., Ltd., accrued om.cn/
first in trial 2021
Huanjia Group, Wang Bingde, corresponding new/in
instance.
Zhang Xueyin and Wang Renping, impairment dex
requiring them to return reserves in
prepayment and pay liquidated accordance with
damages. accounting
policies.



84
Konka Group Co., Ltd. Annual Report 2023


The case is
Because of a dispute over a reheard and in the
purchase and sales contract, the first instance.
Company's subsidiary, Konka Based on the
Huanjia Environmental principle of http://
The case is
Technology Co., Ltd., sued prudence, the c
reheard The 1
Zhe gian g Zhijie Renewable Company has ninfo.c
3,562.89 No and in the case is June
Resources Recycling Co., Ltd., accrued om.cn/
first in trial 2021
Huanjia Group, Wang Bingde, corresponding new/in
instance.
Zhang Xueyin and Wang Renping, impairment dex
requiring them to return reserves in
prepayment and pay liquidated accordance with
damages. accounting
policies.

The case is
Because of a dispute over a reheard and in the
purchase and sales contract, the first instance.
Company's subsidiary, Konka Based on the
Huanjia Environmental principle of http://
The case is
Technology Co., Ltd., sued prudence, the c
reheard The 1
Zhe gian g Xinkai Renewable Company has ninfo.c
3,562.89 No and in the case is June
Resources Recycling Co., Ltd., accrued om.cn/
first in trial 2021
Huanjia Group, Wang Bingde, corresponding new/in
instance.
Zhang Xueyin and Wang Renping, impairment dex
requiring them to return reserves in
prepayment and pay liquidated accordance with
damages. accounting
policies.

The case is
Because of a dispute over a reheard and in the
purchase and sales contract, the first instance.
Company's subsidiary, Konka Based on the
Huanjia Environmental principle of http://
The case is
Technology Co., Ltd., sued Henan prudence, the c
reheard The 1
Huanjia Trust Environmental Company has ninfo.c
3,358.8 No and in the case is June
Protection Technology Co., Ltd., accrued om.cn/
first in trial 2021
Huanjia Group, Wang Bingde, corresponding new/in
instance.
Zhang Xueyin and Wang Renping, impairment dex
requiring them to return reserves in
prepayment and pay liquidated accordance with
damages. accounting
policies.

The case is
Because of a dispute over a reheard and in the
purchase and sales contract, the first instance.
Company's subsidiary, Konka Based on the
Huanjia Environmental principle of http://
The case is
Technology Co., Ltd., sued Henan prudence, the c
reheard The 1
Xincheng Renewable Resources Company has ninfo.c
3,358.8 No and in the case is June
Recycling Co., Ltd., Huanjia accrued om.cn/
first in trial 2021
Group, Wang Bingde, Zhang corresponding new/in
instance.
Xueyin and Wang Renping, impairment dex
requiring them to return reserves in
prepayment and pay liquidated accordance with
damages. accounting
policies.

Because of a dispute over a The case is The case is
http://
purchase and sales contract, the reheard reheard and in the The 1 c
Company's subsidiary, Konka 2,090 No and in the first instance. case is June ninfo.c
Huanjia Environmental first Based on the in trial 2021 om.cn/
Technology Co., Ltd., sued Henan instance. principle of
new/in
Guozheng Environmental prudence, the

85
Konka Group Co., Ltd. Annual Report 2023

Technology Co., Ltd., Huanjia Company has dex
Group, Wang Bingde, Zhang accrued
Xueyin and Wang Renping, corresponding
requiring them to return impairment
prepayment and pay liquidated reserves in
damages. accordance with
accounting
policies.

Because of a dispute over a trust
contract, the Company’s
subsidiary, Henan Frestec
Refrigeration Appliance Co., Ltd.
sued Shenzhen Meisenyuan Plastic
Electronics Co., Ltd., Shantou http://
The case The
Meisen Technology Co.,Ltd., Lin 1 c
has entered The Company case is
Yuanqin, Huang Ruirong, Dece ninfo.c
4,211.33 No the won and the case in
Chuangfu Commerce&Trade Plaza mber om.cn/
execution is in execution. executio
Real Estate 2021 new/in
phase. n.
Development(Huizhou)Co.,Ltd., dex
requiring an order to terminate the
contract, and them return the
payment for goods, pay liquidated
damages and give priority to the
mortgaged property.

Because of a dispute over a trust
contract, the Company’s
subsidiary, Hainan Konka Material
Technology Co., Ltd. sued
http://
Shenzhen Meisenyuan Plastic The case The
1 c
Electronics Co., Ltd., Shantou has entered The Company case is
Dece ninfo.c
Meisen Technology Co.,Ltd., 6,806.6 No the won and the case in
mber om.cn/
Jiangsu East China Hardware City execution is in execution. executio
2021 new/in
Co., Ltd., requiring an order to phase. n.
dex
terminate the contract, and them
return the payment for goods, pay
liquidated damages and give
priority to the mortgaged property.

Because of a dispute over
http://
repurchase, the Company sued Luo The case The
1 c
Zaotong, Luo Jingxia, Luo has entered The Company case is
Dece ninfo.c
Zongyin, Luo Zongwu and 24,875.22 No the won and the case in
mber om.cn/
Shenzhen Yaode Technology Co., execution is in execution. executio
2021 new/in
Ltd., requiring an order to pay the phase. n.
dex
share repurchase and interests.


Note: Courts or arbitration bodies ruled in favor of the Company in the following cases which are currently under enforcement. Details of these cases
can be found in the Company's Announcement on Large Amount Pending Lawsuits and Arbitrations disclosed on 25 June 2019 (Announcement No.
2019-63), the Announcement on Accumulative Lawsuits and Arbitrations disclosed on 19 September 2020 (Announcement No. 2020-97), the
Announcement on Accumulative Lawsuits and Arbitrations disclosed on 1 June 2021 (Announcement No. 2021-48), the Announcement on
Accumulative Lawsuits and Arbitrations disclosed on 1 December 2021 (Announcement No. 2021-101), the Announcement on Accumulative
Lawsuits and Arbitrations disclosed on 24 November 2022 (Announcement No. 2022-89), the Announcement on Accumulative Lawsuits and
Arbitrations disclosed on 1 June 2023 (Announcement No. 2023-37), the Announcement on Accumulative Lawsuits and Arbitrations disclosed on 22
June 2023 (Announcement No. 2023-39) and the Company's periodic reports: 1. As matured notes were failed to be accepted, the Company has filed
a lawsuit with the court to request China Energy Electric Fuel Co., Ltd., China Energy (Shanghai) Enterprise Co., Ltd.., Shanghai Nengping industrial
Co., Ltd., and Shenzhen Qianhai Baoying Factoring Co., Ltd. to pay the bill and the corresponding interest to the Company; 2. As matured notes were
failed to be accepted, the Company has filed a lawsuit with the court to request Shanghai Huaxin International Group Co., Ltd. and Tianjin
International Trade Petrochemical Co., Ltd. to pay the bill and the corresponding interest to the Company; 3. As matured notes were failed to be


86
Konka Group Co., Ltd. Annual Report 2023

accepted, the Company has filed a lawsuit with the court to request Shanghai Huaxin International Group Co., Ltd. Qingdao Bonded Zhongshe
International Trading Co., Ltd. and Shenzhen Qianhai Benniu Agricultural Technology Co., Ltd. to pay the bill and the corresponding interest to the
Company; 4. As a consequence of the non-payment of a bill upon its expiry, Kongka Factoring has instituted legal proceedings before the court. The
lawsuit seeks an injunctive order mandating Tahe Group Co., Ltd., Fuzhou Taijia Industrial Co., Ltd., and Xiamen Lian giường Microelectronics Co.,
Ltd. to remit payment for the bill amount, along with the corresponding interest, to Kongka Factoring.; 5. As matured notes were failed to be accepted,
the Company has filed a lawsuit with the court to request Hefei Huajun Trading Co., Ltd. and Wuhan Jialian Agricultural Technology Development
Co., Ltd. to pay the bill and the corresponding interest to the Company; 6. Due to dispute arisen from a logistics contract, the Company’s subsidiary
Anhui Konka filed a lawsuit to request the freight forwarder Shanghai Triangle Link Logistics Co., Ltd. Shenzhen Branch to make compensation; 7.
Due to contract dispute, the Company’s subsidiary Shenzhen Nianhua applied for arbitration to request the respondent Fang Xianglong and Jiang Yan
to make compensation for corresponding annual profit and fund possession cost; 8. Due to payment dispute, the Company’s subsidiary Hong Kong
Konka applied for an arbitration to Shenzhen Court of International Arbitration to request the respondent Makena Electronic (Hong Kong) to pay for
goods and liquidated damages; 9. Because of a dispute over capital increase, the Company's subsidiary, Shenzhen Konka Investment Holding Co.,
Ltd., applied for arbitration with the Shenzhen Court of International Arbitration (SCIA), requesting the respondents, Elion Resources Group and
Elion Ecological Co., Ltd., to perform the repurchase obligation; 10. As a result of a dispute stemming from an international sale of goods contract,
Anhui Konka Electronic Co., Ltd., a subsidiary of the Company, has initiated legal proceedings against Maoxinyuan Electronics (Hong Kong) Co.,
Ltd. The lawsuit seeks an injunctive order compelling the respondent to pay the applicant the overdue payment interest losses; 11. As a result of a
dispute arising from an international sale of goods contract, Anhui Kangzhi Trade Co., Ltd., a subsidiary of the Company, has initiated legal
proceedings against B&L TECHNOLOGY CO., LIMITED. The lawsuit seeks an injunctive order compelling the respondent to pay the purchase
price, as well as any penalties for breach of contract. 12. Because of a dispute over a purchase and sales contract, the Company's subsidiary, Konka
Huanjia Environmental Technology Co., Ltd., sued Dalian Guangxin Environmental Protection Equipment Technology Development Co., Ltd.,
requiring the latter to return equipment payment already made and pay liquidated damages. 13. Because of a dispute over a contract, the Company
filed a lawsuit with Zhengzou Intermediate People's Court, requiring Henan Radio and Television Network Co., Ltd. to take delivery of goods, make
payment for goods, and pay interest and liquidated damages according to the contract. 14. As a result of contractual disputes, Shenzhen Konka
Unifortune Technology Co., Ltd., a subsidiary of the Company, has initiated legal proceedings against Shenzhen Yaode Technology Co., Ltd.,
Dongsheng Xinluo Technology (Shenzhen) Co., Ltd., Shenzhen Hongyao Dingsheng Investment Management Limited Partnership, Shenzhen
Xiangrui Yingtong Investment Management Limited Partnership, Luo Jingxia, Luo Zongwu, Luo Zongyin, Luo Zaotong, and Luo Saiyin, seeking
restitution for goods received and claiming damages for breach of contract. 15. On account of the infringement of the Company’s trademark rights
and the practice of unfair competition, a lawsuit has been instituted by the Company against Xinshang Electronics Co., Ltd., located in Fu’an City, as
well as Fu gian Zhaoguan Industry and Trade Co., Ltd., Jinhua Kangjia Medical Equipment Factory, and Wang Jun, seeking an injunctive order to halt
the infringement, and claiming compensation for any incurred losses. 16. Due to the dispute over the entrustment contract, Anhui Kangjia Electronics
Co., Ltd., a subsidiary of the company, sued Shenzhen Meisen Plastic Electronics Co., Ltd., Shantou Meisen Technology Co., Ltd., Lin Yuanqin,
Huang Ruirong and Jiangsu Huadong Hardware City Co., Ltd., asking for an order to terminate the contract, return the payment for goods and pay
liquidated damages, and give priority to the mortgage property. The case is being executed; 17, Due to the contract dispute, the Company's subsidiary
Anhui Kangjia Electronics Co., Ltd. sued Shantou Meisen Technology Co., Ltd., Shenzhen Meisen Source Plastic Electronics Co., Ltd., Lin Yuanqin,
Huang Ruirong, Jiangsu Huadong Hardware City Co., Ltd., requiring the order to terminate the contract, the defendant to return the payment and pay
liquidated damages, the mortgage property priority compensation, the case is being executed; 18. Due to the dispute over the loan contract, the
Company sued Yantai Kangyue Investment Co., Ltd., requiring the defendant to repay the loan and interest, and the case is being executed. 19. Due to
the dispute over the guarantee contract, Anhui Konka Electronics Co., Ltd., a subsidiary of the Company, sued Maoxinyuan Electronics (Shenzhen)
Co., Ltd., requesting the defendant to assume joint and several guarantee liability for the plaintiff, and the case is being executed; 20. Due to the share
buyback dispute, the Company's subsidiary Shenzhen Nianhua Enterprise Management Co., Ltd. sued Fang Xianglong and Jiang Yan to buy back the
share and pay the buyback price, and the case is being executed. 21. Due to the dispute over the sales contract, Sichuan Kangjia Intelligent Terminal
Technology Co., Ltd., a subsidiary of the Company, sued Shenzhen Jun xing Communication Technology Co., Ltd., Shenzhen Hong xing Fengda
Industrial Development Co., Ltd., Shenzhen Jun xing Junye Electronics Co., Ltd., Liuyang Huaichuan Heyuan Villa Co., Ltd., Zeng Jiankai and
Zhong Yuhua, demanding payment of goods and liquidated damages. The case is being executed. 22. Due to contract disputes, Hong Kong Konka


87
Konka Group Co., Ltd. Annual Report 2023

Communication Technology Co., Ltd., a subsidiary of the Company, sued Hong Kong Jun xing Electronics International Co., Ltd., Zeng Jiankai and
Zhong Yuhua, demanding payment of goods and liquidated damages, and the case is being executed.

The following cases have been disclosed in current announcements and periodic reports and are currently in trial. Details of these cases can be found
in the Company's Announcement on Large Amount Pending Lawsuits and Arbitrations disclosed on 25 June 2019 (Announcement No. 2020-97) and
the Announcement on Accumulated Lawsuits and Arbitrations disclosed on 1 June 2021 (Announcement No. 2021-48) and the Announcement on
Accumulative Lawsuits and Arbitrations disclosed on 1 December 2021 (Announcement No. 2021-101), the Announcement on Accumulative
Lawsuits and Arbitrations disclosed on 24 November 2022 (Announcement No. 2022-89), the Announcement on Accumulative Lawsuits and
Arbitrations disclosed on 1 June 2023 (Announcement No. 2023-37), the Announcement on Accumulative Lawsuits and Arbitrations disclosed on 22
June 2023 (Announcement No. 2023-39) and the Company's periodic reports: 1. The customer of Hong Kong Konka, H-BUSTER SAO PAULO
INDUSTRIAE COMERCIO S.A (Brazil) was insolvent, and obtained the approval of the judicial reorganization application of Cotia Third Civil
Court of the Court of Sao Paulo, Brazil in May 2013. As the creditor of H-BUSTER, Hong Kong Konka filed the debt declaration documents, and in
August 2014, the amount confirmed of debt was USD2.78 million. 2. Because of a dispute over an agency agreement, the Company's subsidiary,
Henan Frestec Refrigeration Appliance Co., Ltd., sued Shantou Meisen Technology Co., Ltd., Shenzhen Meisenyuan Plastic Electronics Co., Ltd.,
Lin Yuanqin, Huang Ruirong, Jiangsu Huadong Hardware Zone Co., Ltd., and Chuangfu Commerce & Trade Plaza Real Estate Development
(Huizhou) Co., Ltd., requesting to terminate the contract and requesting them to return the payment of goods and liquidated damages and priority
shall be given to the payment for the secured assets, and the case was heard in the second trial; 3. In view of a dispute arising from a commission
contract, Shenzhen Konka Pengrun Technology & Industry Co., Ltd., a subsidiary of the Company, has instituted legal proceedings against Guang’an
Ou ăn kít Electronic Technology Co., Ltd., Guan Hongshao, Huaying Gaoke De Electronic Technology Co., Ltd., Huaying Gaoke Long Electronic
Technology Co., Ltd., Guizhou Jiaguida Technology Co., Ltd., Sichuan Hongrongyuan Property Co., Ltd., Du Xinyu, Lin Bolong, and Wang
Shisheng, seeking an order for the defendants to pay the purchase price and claiming damages for breach of contract; 4. Due to a dispute arising from
a guarantee contract, Hong Kong Konka Limited, a subsidiary of the Company, has initiated legal proceedings against Xu Xiang, Zheng Baoyao, Ke
Hanhua, and Shenzhen Jinzhong Industry Co., Ltd., seeking an order for the defendants to assume guarantee liability, and the case has been closed; 5
As a result of a dispute arising from an international sale of goods contract, Jiaxin Technology Co., Ltd., a subsidiary of the Company, has initiated
legal proceedings against Dingxin Electronic Technology (Hong Kong) Co., Ltd., Chen Wenhuan, and Chen Baohong, seeking an order for the
defendants to pay for the goods and claiming damages for breach of contract; 6. Due to a dispute arising from an installment purchase contract, Wu
Rong has instituted legal proceedings against the Company and its subsidiary, Shenzhen Konka Electronics Technology Co., Ltd., seeking an order
for the payment of the purchase price and overdue payment interest to the plaintiff, and the case is being heard in the second instance; 7. As a result of
a dispute arising from a contract, Shenzhen Oriental Entrepreneurship Investment Co., Ltd. has initiated legal proceedings against the Company,
seeking an order for the payment of the repurchase amount and claiming damages for breach of contract. 8. As a result of a dispute arising from a
third-party objection to execution, Konka Huanjia Environmental Technology Co., Ltd., a subsidiary of the Company, has instituted legal proceedings
against Fuxin Bank Co., Ltd. and Huanjia Group Co., Ltd., seeking an order from the court to affirm the plaintiff’s ownership of the goods and to
exclude the defendant’s execution, and the case is reheard and in the first instance. 9. As a result of a dispute arising from a third-party objection to
execution, Konka Huanjia Environmental Technology Co., Ltd., a subsidiary of the Company, has instituted legal proceedings against Fuxin Bank
Co., Ltd. and Dalian Jinjia Materials Recycling Co., Ltd., seeking an order from the court to affirm the plaintiff’s ownership of the goods and to
exclude the defendant’s execution, and the case is reheard and in the first instance. 10. Due to a dispute arising from a third-party objection to
execution, Konka Huanjia Environmental Technology Co., Ltd., a subsidiary of the Company, has instituted legal proceedings against Fuxin Bank
Co., Ltd., Dalian Jinkaisxuan Renewable Resource Acquisition Chain Co., Ltd., Dalian Yingtai Paper Co., Ltd., Dalian Zhanhong Renewable
Resource Recycling Co., Ltd., and Wang Jinping, seeking an order from the court to affirm the plaintiff’s ownership of the goods and to exclude the
defendant’s execution, and the case is reheard and in the first instance. 11. Due to a contractual dispute, Shenzhen Konka Unifortune Technology Co.,
Ltd., a subsidiary of the Company, filed a lawsuit against Shenzhen Jun xing Communication Technology Co., Ltd., Gumei Electronics (Hongkong)
Technology Limited, Shenzhen Hong xing fengda Industrial Development Co., Ltd., Shenzhen Jun xing Junye Electronics Co., Ltd., Zeng Jiankai,
Zhang Zhenyu, Herewin Technology Group (HK) Co., Ltd., Zhang Lixia, Anhui Baolin Industrial Co., Ltd., Zeng Qingpeng, and Zhong Yuhua to
return the payment for goods and pay the corresponding liquidated damages. 12. Due to a purchase and sales contract, the Company’s subsidiary
Konka Huanjia Environmental Technology Co., Ltd. appealed against Xu Jianhua and Guangxi BG New Materials Co., Ltd. to request the court to

88
Konka Group Co., Ltd. Annual Report 2023

refuse Xu Jianhua's all claims and request Guangxi BG New Materials Co., Ltd. to make payment for goods and pay liquidated damages, and the case
is reheard and in the first instance. 13. Due to a dispute over an equity transfer agreement, the Company filed a lawsuit against Beijing
Langruihaoteng Technology Development Co., Ltd., Beijing Beida Jade Bird Security System Engineering Technical Co., Ltd., and Beijing
Jingruihaoteng Technology Development Co., Ltd., seeking the final payment of the equity transfer, and the case was won in first instance, the
judgment has entered into force and the application for enforcement is in progress. 14. Due to a dispute over the cancellation of creditor's rights, the
Company’s subsidiary Anhui Konka Electronic Co., Ltd. filed a lawsuit against Wu Rong and Makena Electronic (Shenzhen) Co., Ltd., seeking for
the cancellation of the Agreement on the Transfer of Creditor's Rights and the relevant supplemental agreement previously signed by the defendants,
and the case is being heard in second instance. 15. Due to a purchase and sales contract, Sichuan Shuwu Guangrun Logistics Co., Ltd. filed a lawsuit
against the Company’s subsidiary Dongguan Konka Electronic Co., Ltd., requesting the latter to make payment for goods and pay liquidated damages.
16. Due to a dispute over bankruptcy, Xinxiang Jiahui Dakeluo Crafts Products Co., Ltd. filed a lawsuit against the Company’s subsidiary Henan
Frestec Refrigeration Appliance Co., Ltd., requesting a confirmation that the period-end excess VAT paid that had been returned by the tax authority
to the defendant should have been other properties to be distributed. 17. Due to a purchase and sales contract of international goods, Micro Crystal
Transfer Group Ltd. filed a lawsuit against the Company’s subsidiary Chongqing Konka Optoelectronic Technology Research Institute Co., Ltd.,
requesting the latter to make payment for goods and pay liquidated damages. 18. Due to a contractual dispute, the Company filed a lawsuit against
Zhu Xinming, Leng Sumin, Gongqingcheng Jinzhuanrong Investment Management Partnership (Limited Partnership), and Gongqingcheng Xinrui
Investment Management Partnership (Limited Partnership), requesting them to pay the performance compensation.


XII Punishments and Rectifications

√ Applicable □ Not applicable

Type of
Disclosure Disclosure
Name Type Reason punishme Conclusion (if any)
date index
nt


Therefore, the Shenzhen
Some purchase and sale
Bureau of the China Securities
transactions, conducted
Regulatory Commission
by the Company's
(CSRC Shenzhen) decided to
relevant subsidiaries
take a regulatory measure,
from 2020 to 2021, did
requesting the Company to
not have commercial
make a correction, in
Konka substance, the
Charging accordance with Item 1, 4 January
Group Co., Other recognition of income
correction Article 52 of the Measures for 2023
Ltd. and costs of which was
the Administration of
short of evidence.
Information Disclosure by
Consequently, financial
Listed Companies and Article http:// cni
data disclosed in the
21 of the Rules for the On-site nfo.cn/new
corresponding periodic
Inspection of Listed /index
report of the Company
Companies (ZH.J.H.G.G.
were inaccurate.
[2022] No. 21).


(I) Long-term assets Pursuant to Article 51 and
impairment tests were Article 52 of the Measures for
not prudent. The Charging the Administration of
Konka Company's subsidiary, correction Information Disclosure by 13 July
Group Co., Other Jiangxi Konka New and Listed Companies, and Article 2023
Ltd. Material Technology regulatory 21 of the Rules for the On-site
Co., Ltd., and its interview Inspection of Listed
affiliated enterprises did Companies (Z.J.H.G.G. [2022]
not exercise due No. 21), the Shenzhen Bureau


89
Konka Group Co., Ltd. Annual Report 2023

diligence in the long- of the China Securities
term assets impairment Regulatory Commission
tests for 2021. (II) decided to take regulatory
Information disclosure measures, including ordering
was not standardized. In the Company to make
the Company's 2022 corrections and conducting
results forecast, regulatory interviews with
information about the relevant personnel of the
reasons for the year-on- Company.
year decline in revenue
from consumer
electronics was not
completely disclosed.
Some inventory of the
Company's related
subsidiaries was seized
in 2019, but such
limitation was not
disclosed in the financial
statements' notes until
the 2022 annual report.


Information on rectification

√ Applicable □ Not applicable

As of the end of the Reporting Period, the Company had completed all remediation tasks in line
with the relevant regulatory requirements. For details, see the Report on the Remediation Based on
the Corrective Measures of the Shenzhen Bureau of the China Securities Regulatory Commission
against the Company (Announcement No.: 2023-09) and the Report on the Remediation Based on
the Corrective Measures of the Shenzhen Bureau of the China Securities Regulatory Commission
against the Company (Announcement No.: 2023-51) disclosed by the Company on
http:// cninfo.cn/new/index respectively on 25 February 2023 and 11 August 2023.

XIII Credit Quality of the Company as well as its Controlling Shareholder and De Facto
Controller

□ Applicable √ Not applicable

XIV Major Related-Party Transactions

1. Continuing Related-Party Transactions

√ Applicable □ Not applicable

Rel As % Appro Over Obtai
Type Total Index
atio Prici of ved the Metho nable
Relate of Trans value Disclo to
nshi Specific ng total transa appro d of marke
d trans action (RMB sure disclo
p transaction prin value ction ved settle t price
party actio price ’0,000 date sed
wit ciple of all line line or ment for
n ) infor
h same- (RMB not same-
matio
the type ’0,000 type
90
Konka Group Co., Ltd. Annual Report 2023

Co transa ) transa n
mpa ctions ctions
ny


Und
Purc
er
OCT hase
Enter the
of Property
prises sam
com manageme Neg
Co., e 28
nt, otiat Marke 11,34 10,00
Ltd modi 1.17% Not Cash N/A March
actu utilities, ed t price 3.52 0
and 2023
ties office price
its al
and leases
subsid
cont
iaries servi
roll http://
ces 
er cninfo
.
cn/ne
Und
w/ind
er Sales
ex
OCT of
Enter the Sale of
prises sam good TVs,
Neg
Co., e s and intelligent 28
otiat Marke 7,802. 20,00
Ltd servi terminals, 0.76% Not Cash N/A March
actu ed t price 34 0
and etc. and 2023
ces price
its al relevant
subsid services
cont
iaries
roll
er


19,14 30,00
Total -- -- -- -- -- -- -- --
5.86 0

Large-amount sales return in detail N/A

The Company has published the Forecasting Public Notice on Routine Related-party
Give the actual situation in the
Transaction for Y2023 on Securities Times, Shanghai Securities News, and China
Reporting Period (if any) where an
Securities Journal as well as the Internet website designated by CSRC
estimate had been made for the total
http://http:// cninfo.cn/new/index on 28 March 2023. In the Reporting Period,
value of continuing related-party
the basis for pricing, transaction price, transaction amount and settlement methods of raw
transactions by type to occur in the
materials purchased by the Company were basically in accordance with the forecast. The
Reporting Period
total amount incurred was RMB191,458,600.

Reason for any significant
difference between the transaction
N/A
price and the market reference price
(if applicable)


2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests

□ Applicable √ Not applicable

No such cases in the Reporting Period.

3. Related Transactions Regarding Joint Investments in Third Parties

□ Applicable √ Not applicable
91
Konka Group Co., Ltd. Annual Report 2023


No such cases in the Reporting Period.

4. Credits and Liabilities with Related Parties

√ Applicable □ Not applicable

Indicate by tick mark whether there were any credits and liabilities with related parties for
non-operating purposes.

√ Yes □ No

No credits receivable with related parties

Liabilities payable to related parties:

Increased Recovered Interest in
Beginning in the in the the Ending
Related Related Forming balance Reporting Reporting Reporting balance
Interest rate
party relationship reason (RMB’0,00 Period Period Period (RMB’0,00
0) (RMB’0,00 (RMB’0,00 (RMB’0,00 0)
0) 0) 0)

131,091.00 0.00 50,000.00 3.45% 4,551.91 81,091.00
The
OCT Company
Controlling
Enterprises applies 50,000.00 0.00 0.00 3.45% 1,748.96 50,000.00
shareholder
Co., Ltd. entrusted
loan to it
70,000.00 0.00 0.00 3.45% 2,448.54 70,000.00

Effects of liabilities with related parties
The Company applies entrusted loan from OCT Enterprises Co., Ltd. which meets the
on the Company’s operating results and
needs of the company's existing business development and reduces the financing cost.
financial conditions


5. Transactions with Related Finance Companies

□ Applicable √ Not applicable

The Company did not make deposits in, receive loans or credit from and was not involved in any
other finance business with any related finance company or any other related parties.

6. Transactions with Related Parties by Finance Companies Controlled by the Company

□ Applicable √ Not applicable

The finance company controlled by the Company did not make deposits, receive loans or credit
from and was not involved in any other finance business with any related parties.

7. Other Major Related-Party Transactions

(1) Guarantee Limits for Affiliated Companies: The 7th meeting of the 10th Board of Directors on
24 February 2023 and the First Extraordinary General Meeting of Shareholders in 2023 on 13

92
Konka Group Co., Ltd. Annual Report 2023


March 2023, passed the proposal Providing Guarantee Limits for Chuzhou Kangjin Health Industry
Development Co., Ltd. The Company provided a credit guarantee limit of RMB259.7 million for
Chuzhou Kangjin Health Industry Development Co., Ltd. according to its shareholding proportion,
with a guarantee limit valid for fourteen years. This credit guarantee limit was used to apply for
loans from banks by Chuzhou Kangjin Health Industry Development Co., Ltd. Other shareholders
of Chuzhou Kangjin Health Industry Development Co., Ltd. will provide guarantees for it based on
their respective shareholding proportions, together with the Company.

(2) Application for Comprehensive Credit Limit from China Everbright Bank Co., Ltd.: The 7th
meeting of the 10th Board of Directors on 24 February 2023, approved the proposal Application for
Comprehensive Credit Limit from China Everbright Bank Co., Ltd. The Company applied for a
comprehensive credit limit not exceeding RMB1.5 billion from China Everbright Bank Co., Ltd. to
meet its daily operating capital needs. During the reporting period, the ongoing credit amount of the
Company with China Everbright Bank Co., Ltd. was RMB1 billion.

(3) Counter-guarantees for Bank Credit Facilities Application: The 7th meeting of the 10th Board of
Directors on 24 February 2023 and the First Extraordinary General Meeting of Shareholders in
2023 on 13 March 2023, approved the proposal Providing Counter-guarantees for Bank Credit
Facilities Application by the Company. To reduce financing costs, Overseas Chinese Town
Holdings Company (OCT Group) provided a guarantee for the Company’s bank credit facilities
application, not exceeding RMB1 billion. In turn, the Company offered counter-guarantees to OCT
Group of an equal amount and term, with a counter-guarantee amount not exceeding RMB1 billion,
and a guarantee limit valid for a maximum of three years.

(4) The Company's non-public issuance of corporate bonds and the provision of counter-guarantees
to OCT Group: At the 15th meeting of the 10th Board of Directors held on 10 August 2023, and the
second extraordinary general meeting of shareholders in 2023 held on 28 August 2023, the proposal
on Plan for Non-public Issuance of Corporate Bonds by the Company was deliberated and passed.
To reduce financing costs, OCT Group intends to provide a full, unconditional, and irrevocable joint
liability guarantee for the Company's non-public issuance of corporate bonds not exceeding
RMB2.3 billion. Simultaneously, the Company plans to provide an equivalent and concurrent credit
counter-guarantee to OCT Group, with the counter-guarantee amount not exceeding RMB2.3 billion
and the guarantee period not exceeding 5 years.

Index to the public announcements about the said related-party transactions disclosed

Title of public announcement Disclosure date Disclosure website


Announcement on the Provision of Guarantee Line for Joint Stock Company http:// cninfo.c
25 February 2023
and the Related-party Transaction n/new/index


93
Konka Group Co., Ltd. Annual Report 2023


Announcement on the Application to China Everbright Bank for
25 February 2023
Comprehensive Credit Line & the Related-party Transaction


Announcement on the Provision of Counter-guarantee for the Application to
25 February 2023
Bank for Credit Line & the Related-party Transaction


Announcement on Plan for Non-public Issuance of Corporate Bonds by the
11 August 2023
Company and Provision of Counter-Guarantee to OCT Group


XV Major Contracts and Execution thereof

1. Entrustment, Contracting and Leases

(1) Entrustment

□ Applicable √ Not applicable

No such cases in the Reporting Period.

(2) Contracting

□ Applicable √ Not applicable

No such cases in the Reporting Period.

(3) Leases

√ Applicable □ Not applicable

Note to leases

No significant leases in the Reporting Period.

The rent of Konka Development Building has received RMB67,229,722.75 in the Reporting
Period.

The project bringing about gains or losses as over 10% of total profit in the Reporting Period

□ Applicable √ Not applicable

No such cases in the Reporting Period.

2. Major Guarantees

√ Applicable □ Not applicable
Unit: RMB'0,000

Guarantees provided by the Company and its subsidiaries for external parties (exclusive of those for subsidiaries)




94
Konka Group Co., Ltd. Annual Report 2023


Havin Guarant
Disclosure Actual Type Collat Counter Term
Line of Actual g ee for a
date of the guarant of eral guarant of
Obligor guarante occurren expire related
guarantee line ee guara (if ee (if guara
e ce date d or party or
announcement amount ntee any) any) ntee
not not

30 Joint-
Two
Septemb 3,747 liabilit No Not Not Not
years
er 2022 y

One
23 Joint-
year
Novemb 2,748 liabilit No Not Not Not
and a
er 2022 y
half

Joint-
22 May One
1,499 liabilit No Not Not Not
2023 year
y

Joint-
10 May One
3,747 liabilit No Not Not Not
2023 year
y

Econ Joint-
28 April 2022 50,000 5 July One
Technology 4,997 liabilit No Not Not Not
2023 year
y

Joint-
19 July One
2,498 liabilit No Not Not Not
2023 year
y

28 Joint-
One
August 999 liabilit No Not Not Not
year
2023 y

29 Joint-
One
Decemb 1,374 liabilit No Not Not Not
year
er 2023 y

28 Joint-
One
Decemb 2,498 liabilit No Not Not Not
year
er 2023 y

Foshan Pearl
River Media
Joint-
Creative Park 17 May Six
28 April 2022 1,372 980 liabilit No Not Not Not
Culture 2022 years
y
Development
Co., Ltd.

Jiangxi Xinxin
12 Joint-
Jian’an
10,000 Decemb 10,000 liabilit No Not Not Not
Engineering
er 2016 y
Co., Ltd.

Jiangxi 12 Joint-
Zhongyi 10,000 Decemb 10,000 liabilit No Not Not Not
Decoration er 2016 y
Materials Co.,

95
Konka Group Co., Ltd. Annual Report 2023

Ltd.

Jiangxi Shanshi
12 Joint-
Technological
10,000 Decemb 10,000 liabilit No Not Not Not
Development
er 2016 y
Co., Ltd.

8 Joint-
Three
Septemb 60,000 liabilit No Not Not Yes
years
er 2022 y

18 Joint-
Three
October 60,000 liabilit No Not Not Yes
years
30 March 2022 y
OCT Group 2022 and 25 370,000
February 2023 22 Joint-
Three
Septemb 50,000 liabilit No Not Not Yes
years
er 2023 y

13 Joint-
Three
Decemb 30,000 liabilit No Not Not Yes
years
er 2023 y

Total approved line for such
Total actual amount of such guarantees in the
guarantees in the Reporting Period 361,770 97,612
Reporting Period (A2)
(A1)

Total approved line for such
Total actual balance of such guarantees at the end
guarantees at the end of the 1,083,642 255,087
of the Reporting Period (A4)
Reporting Period (A3)

Guarantees provided between the Company and subsidiaries


Disclosure Actua Guaran
date of the Line l Colla Counter Term tee for
Having
guarantee of Actual guara Type of teral guarante of a
Obligor expired
line guaran occurrence date ntee guarantee (if e (if guarant related
or not
announce tee amou any) any) ee party or
ment nt not

Joint- Two
2 June 2022 3,000 No Not Not Not
liability years

6 February 10,00 Joint- One
No Not Not Not
2023 0 liability year

14 August Joint- One
Anhui 25 5,000 No Not Not Not
55,00 2023 liability year
Tongchua February
0
ng 2023
19 October 10,00 Joint- One
No Not Not Not
2023 0 liability year

One
20 November Joint- year
3,000 No Not Not Not
2023 liability and a
half




96
Konka Group Co., Ltd. Annual Report 2023


28 April 19 January Joint- One
4,000 No Not Not Not
2022 and 2023 liability year
Boluo 125,0
25
Precision 00
February 25 August Joint- Three
2023 4,500 No Not Not Not
2023 liability years

One
24 November Joint- year
Electroni 8,500 No Not Not Not
25 2022 liability and a
cs 100,0 half
February
Technolo 00
2023
gy
26 September 50,00 Joint- One
No Not Not Not
2023 0 liability year


24 March Joint- One
24 March 2023 5,000 No Not Not Not
2021 and liability year
Donggua 90,00
25
n Konka 0
February 80,00 Joint- Ten
2023 23 June 2021 No Not Not Not
0 liability years

Joint- Other Two
10 March 2022 990 No Not Not
liability sharehol years
der of
Jiangxi
Konka
provides
a
31
Jiangxi counter
October 6,990
Konka guarante
2018 15 August Joint- One
6,000 No e for the Not Not
2023 liability Compan year
y for
49% of
the
guarante
e line

Other
sharehol
der of
Xinfeng
Microcr
ystalline
provides
Xinfeng a
30 March 25,00 Joint- One
Microcry 30 June 2023 7,200 No counter Not Not
2019 0 liability year
stalline guarante
e for the
Compan
y for
49% of
the
guarante
e line

Other
Jiangxi sharehol
High der of
30 March 45,00 Joint- Two
Transpare 10 March 2022 990 No Jiangxi Not Not
2019 0 liability years
nt High
Substrate
Transpa
rent
97
Konka Group Co., Ltd. Annual Report 2023

Substrat
e
provides
a
counter
guarante
e for the
Compan
y for
49% of
the
guarante
e line

24 March
2021 and
Sichuan 20,00 Joint- Three
25 23 May 2023 4,000 No No Not Not
Konka 0 liability years
February
2023


Ningbo Joint- One
2 March 2023 6,000 No No Not Not
Khr liability year
28 April 12,00
Electric
2022 0
Applianc Joint- One
e 13 July 2023 6,000 No No Not Not
liability year

Other
sharehol
der of
Yibin
Kangrun
provides
a
24
Yibin 10,00 13 November 10,00 Joint- counter Four
October No Not Not
Kangrun 0 2020 0 liability guarante years
2020
e for the
Compan
y for
33% of
the
guarante
e line

Telecom
municatio
28 April 20,00 Joint- One
n 23 July 2023 7,500 No No Not Not
2022 0 liability year
Technolo
gy

10 August 10,21 Joint- Other Ten
No Not Not
2021 6 liability sharehol years
der of
29 October Joint- Anhui Five
7,000 No Konka Not Not
2021 liability years
Anhui 28 April 110,0 provides
Konka 2022 00 a
24 October Joint- counter Four
7,000 No Not Not
2022 liability guarante years
e for the
Compan
19 September Joint- Two
7,000 No y for Not Not
2022 liability years
22% of



98
Konka Group Co., Ltd. Annual Report 2023

the
Joint- guarante Five
25 June 2023 5,000 No Not Not
liability e line years

31 August Joint- One
5,500 No Not Not
2023 liability year

22 September 18,00 Joint- One
No Not Not
2023 0 liability year

One
14 September Joint- year
5,000 No Not Not
2022 liability and a
half

One
Konka 24 March 50,00 22 December Joint- year
5,000 No No Not Not
Circuit 2021 0 2022 liability and a
half

Three
10,00 Joint- and a
19 July 2023 No Not Not
0 liability half
years

28 April
Mobile 2022 and
15,00 10 November Joint- One
Interconn 25 7,000 No No Not Not
0 2023 liability year
ection February
2023

24 March
Liaoyang
2021 and 20,00 Joint- One
Kangshu 6 January 2023 5,000 No No Not Not
28 April 0 liability year
n
2022

20,00 Joint- Five
Konka 12 July 2021 No No Not Not
0 liability years
Xinyun 24 March 30,00
Semicond 2021 0
uctor Joint- Two
26 May 2022 6,000 No No Not Not
liability years

Yibin
Konka 24 March 10,00 Joint- One
23 May 2023 980 No No Not Not
Intelligen 2021 0 liability year
t

Chongqin 24 March 55,60 13 December 38,00 Joint- Fifteen
No No Not Not
g Konka 2021 0 2022 0 liability years

Frestec
28 April 12,24 10,20 Joint- Eight
Smart 6 July 2022 No No Not Not
2022 0 0 liability years
Home

Konka
Soft 28 April 19,00 19 December Joint- Four
975 No No Not Not
Electroni 2022 0 2022 liability years
c




99
Konka Group Co., Ltd. Annual Report 2023


Xi'an
Kanghon
g
Technolo 25
30,00 30,00 Joint- Ten
gy February 26 May 2023 No No Not Not
0 0 liability years
Industry 2023
Develop
ment Co.,
Ltd.

Total actual amount of such
Total approved line for such guarantees in the Reporting
275,845 guarantees in the Reporting Period 209,680
Period (B1)
(B2)

Total actual balance of such
Total approved line for such guarantees at the end of the
1,076,885 guarantees at the end of the 429,551
Reporting Period (B3)
Reporting Period (B4)

Guarantees provided between subsidiaries


Disclosure Actua Guaran
date of the Line l Colla Counter Term tee for
Having
guarantee of Actual guara Type of teral guarante of a
Obligor expired
line guaran occurrence date ntee guarantee (if e (if guarant related
or not
announce tee amou any) any) ee party or
ment nt not

N/A

Total approved line for such guarantees in the Reporting Total actual amount of such guarantees
1,530 0
Period (C1) in the Reporting Period (C2)

Total approved line for such guarantees at the end of the Total actual balance of such guarantees
1,530 0
Reporting Period (C3) at the end of the Reporting Period (C4)

Total guarantee amount (total of the three kinds of guarantees above)

Total guarantee line approved in the Reporting Period Total actual guarantee amount in the
639,145 307,292
(A1+B1+C1) Reporting Period (A2+B2+C2)

Total actual guarantee balance at the
Total approved guarantee line at the end of the Reporting
2,162,057 end of the Reporting Period 684,638
Period (A3+B3+C3)
(A4+B4+C4)

Total actual guarantee amount (A4+B4+C4) as % of the
121%
Company’s net assets

Of which:

Balance of guarantees provided for shareholders, actual controller and their related parties (D) 200,000

Balance of debt guarantees provided directly or indirectly for obligors with an over 70% debt/asset ratio (E) 684,638

Amount by which the total guarantee amount exceeds 50% of the Company’s net assets (F) 402,418

Total of the three amounts above (D+E+F) 684,638


100
Konka Group Co., Ltd. Annual Report 2023


Joint responsibilities possibly borne in the Reporting Period for undue guarantees (if any) N/A

Provision of external guarantees in breach of the prescribed procedures (if any) N/A


Compound guarantees:

None

3. Cash Entrusted for Wealth Management

(1) Cash Entrusted for Wealth Management

√ Applicable □ Not applicable

Overview of cash entrusted for wealth management in the Reporting Period
Unit: RMB’0,000

Unrecovered
Unrecovered overdue amount
Type Funding source Amount Undue amount
overdue amount with provision for
impairment

Trust financial
Self-owned 10,000.00 10,000.00 0 0
products

Total 10,000.00 10,000.00 0 0


High-risk entrusted wealth management with significant single amount or low security and poor
liquidity:
□ Applicable √ Not applicable
Whether there is the case where the principal cannot be recovered at maturity or other case which
may cause impairment for entrusted wealth management

□ Applicable √ Not applicable

(2) Entrusted Loans

□ Applicable √ Not applicable

No such cases in the Reporting Period.

4. Other Major Contracts

□ Applicable √ Not applicable

No such cases in the Reporting Period.

XVI Other Significant Events


101
Konka Group Co., Ltd. Annual Report 2023


√ Applicable □ Not applicable

(I) Corporate bonds issue: Currently, as for the non-public offering of corporate bonds of RMB2.3
billion, RMB1.5 billion of corporate bonds have been issued on 29 January 2024, and the rest of
corporate bonds of RMB0.8 billion have been issed on 18 March 2024.

(II) Initiation and establishment of funds: The total scale of the Oriental-Konka Industry M&A Fund
was RMB1,001,000,000. Shenzhen Konka Investment Holding Co., Ltd. contributed RMB500
million, accounting for 49.95% of the total units. By the date of this report, Shenzhen Konka
Investment Holding Co., Ltd. has contributed RMB487,344,000. The fund invested in Jiangxi
Yahua Electronic Materials Co., Ltd., Potron Technology Co., Ltd., etc.

The total scale of the Kunshan-CITIC-Konka Emerging Industry Development Investment Fund
was RMB1,006,000,000. Shenzhen Konka Investment Holding Co., Ltd. contributed RMB500
million, accounting for 49.70% of the total units. By the date of this report, Shenzhen Konka
Investment Holding Co., Ltd. has contributed RMB195.21 million. The fund invested in
UNIONTECH, Hercules Microsystems (HME), etc.

The total scale of the Tongxiang Wuzhen Jiayu Digital Economic Industry Fund was RMB500
million. Shenzhen Konka Investment Holding Co., Ltd. contributed RMB200 million, accounting
for 40% of the total units. By the date of this report, Shenzhen Konka Investment Holding Co., Ltd.
has contributed RMB200,000,000. The fund invested in Feidi Technology (Shenzhen) Co., Ltd.,
Allystar Technology (Shenzhen) Co., Ltd., etc.

The total scale of Yancheng Kangyan Industry Investment Fun was RMB3,000 million. Shenzhen
Konka Investment Holding Co., Ltd. and Shenzhen Konka Capital Equity Investment Management
Co., Ltd. contributed RMB1201,500,000, accounting for 40.05% of the total units. By the date of
this report, Shenzhen Konka Investment Holding Co., Ltd. and Shenzhen Konka Capital Equity
Investment Management Co., Ltd. have contributed RMB217.36 million. The fund invested in
Anhui Zhongdian Xingfa and Xinlong Co., Ltd., Chongqing E2info Technology Co., Ltd., etc.

The total scale of Yibin Kanghui Electronic Information Industry Equity Investment Fund was
RMB1,002,000,000. Shenzhen Konka Investment Holding Co., Ltd. and Shenzhen Konka Capital
Equity Investment Management Co., Ltd. contributed RMB401 million, accounting for 40.02% of
the total units. By the issuance date of this report, Shenzhen Konka Investment Holding Co., Ltd.
has contributed RMB104 million. The fund invested in Chongqing E2info Technology Co., Ltd., etc.

The total scale of Chongqing Kangxin Equity Investment Fund was RMB2 billion. Shenzhen
Konka Investment Holding Co., Ltd. and Shenzhen Konka Capital Equity Investment Management
Co., Ltd. contributed RMB1 billion, accounting for 50% of the total units. By the date of this report,

102
Konka Group Co., Ltd. Annual Report 2023


Shenzhen Konka Investment Holding Co., Ltd. and Shenzhen Konka Capital Equity Investment
Management Co., Ltd. have contributed RMB148,248,300. The fund invested in Shanghai VEIGLO
Information System Co., Ltd., Jiangxi Taide Wisdom Technology Co., Ltd., etc.

(III) Disclosure index of significant information

Announce Website
Date Title Page on newspaper
ment No. link


Announcement on Receiving the Shenzhen Bureau
of the China Securities Regulatory Commission's Securities Daily B108, Shanghai Securities
2023-01 4 January 2023
Decision to Take Corrective Measures against News 116, etc.
Konka Group Co., Ltd.


Announcement on Resolutions of the Sixth Meeting Securities Daily B31, Shanghai Securities
2023-02 17 January 2023
of the Tenth Board of Directors News 17, etc.


Announcement on Proposed Sale of Some of Equity Securities Daily B31, Shanghai Securities
2023-03 17 January 2023
in Chutian Dragon Co., Ltd. News 17, etc.


Announcement on Proposed Sale of Some of Equity
Securities Daily B26, Shanghai Securities
2023-04 17 January 2023 in Wuhan Tianyuan Environmental Protection Co.,
News 17, etc.
Ltd.


Announcement on Progress in the Provision of Securities Daily B75, Shanghai Securities
2023-05 18 January 2023
External Guarantee News 81, etc.


Securities Daily B143, Shanghai Securities
2023-06 31 January 2023 2022 Result Forecast
News 148, etc.
http://w
ww.cni
25 February Announcement on Resolutions of the Seventh Securities Daily B57, Shanghai Securities
2023-07 nfo 
2023 Meeting of the Tenth Board of Directors News 41, etc.
.cn/new
/index
25 February Announcement on Resolutions of the Fourth Securities Daily B58, Shanghai Securities
2023-08
2023 Meeting of the Tenth Board of Supervisors News 41, etc.


Report on the Remediation Based on the Corrective
25 February Measures of the Shenzhen Bureau of the China Securities Daily B58, Shanghai Securities
2023-09
2023 Securities Regulatory Commission against the News 41, etc.
Company


25 February Securities Daily B57, Shanghai Securities
2023-10 Announcement on External Guarantee
2023 News 41, etc.


Announcement on Providing Security Limit to and
25 February Securities Daily B57, Shanghai Securities
2023-11 Conducting Connected Transaction with
2023 News 41, etc.
Shareholding Company


25 February Notice on Convening 2023 First Extraordinary Securities Daily B57, Shanghai Securities
2023-12
2023 General Meeting News 41, etc.


25 February Announcement on Providing Financial Assistance Securities Daily B58, Shanghai Securities
2023-13
2023 to Shandong Econ Technology Co., Ltd. at News 41, etc.


103
Konka Group Co., Ltd. Annual Report 2023

Shareholding Ratio


Announcement on Applying for a Comprehensive
25 February Securities Daily B57, Shanghai Securities
2023-14 Line of Credit to and Conducting Connected
2023 News 41, etc.
Transactions with China Everbright Bank


Announcement on Providing Counter Guarantee
25 February Securities Daily B50, Shanghai Securities
2023-15 and Conducting Connected Transaction for
2023 News 41, etc.
Applying for Bank Credit Business


25 February Announcement on Progress of Guarantee Provision Securities Daily B58, Shanghai Securities
2023-16
2023 for Wholly-owned Company News 41, etc.


Announcement on Resolutions of 2023 First Securities Daily B49, Shanghai Securities
2023-17 14 March 2023
Extraordinary General Meeting News 41, etc.


Securities Daily B178, Shanghai Securities
2023-18 28 March 2023 2022 Annual Report
News 177, etc.


Securities Daily B178, Shanghai Securities
2023-19 28 March 2023 Abstract of 2022 Annual Report
News 177, etc.


Announcement on Resolutions of the Eighth Securities Daily B178, Shanghai Securities
2023-20 28 March 2023
Meeting of the Tenth Board of Directors News 177, etc.


Announcement on Resolutions of the Fifth Meeting Securities Daily B178, Shanghai Securities
2023-21 28 March 2023
of the Tenth Board of Supervisors News 177, etc.


Announcement on Expected Routine Connected Securities Daily B178, Shanghai Securities
2023-22 28 March 2023
Transactions in 2023 News 177, etc.


Announcement on Plan of Profit Distribution for Securities Daily B178, Shanghai Securities
2023-23 28 March 2023
2022 News 177, etc.


Announcement on Accrual of Asset Impairment Securities Daily B178, Shanghai Securities
2023-24 28 March 2023
Reserves for 2022 News 177, etc.


Announcement on Change in Accounting Method of Securities Daily B90, Shanghai Securities
2023-25 4 April 2023
Shareholding Company News 65, etc.


Announcement on Proposed Sale of Some of Equity Securities Daily B90, Shanghai Securities
2023-26 4 April 2023
in Chutian Dragon Co., Ltd. News 65, etc.


Announcement on Resolutions of the Ninth Meeting Securities Daily B90, Shanghai Securities
2023-27 4 April 2023
of the Tenth Board of Directors News 65, etc.


Announcement on Holding 2022 Online Result Securities Daily B90, Shanghai Securities
2023-28 4 April 2023
Release News 65, etc.


Securities Daily B1204, Shanghai
2023-29 29 April 2023 2023 Q1 Report
Securities News 988, etc.


Announcement on Progress of Guarantee Provision Securities Daily B1204, Shanghai
2023-30 29 April 2023
for Wholly-owned Company Securities News 988, etc.


104
Konka Group Co., Ltd. Annual Report 2023


Announcement on Some Accounting Policy Securities Daily B1204, Shanghai
2023-31 29 April 2023
Changes Securities News 988, etc.


Announcement on the Postponement of Reply to
Securities Daily B128, Shanghai Securities
2023-32 13 May 2023 Inquiry Letter on 2022 Annual Report from
News 12, etc.
Shenzhen Stock Exchange


Announcement on Resolutions of 11th Meeting of Securities Daily B21, Shanghai Securities
2023-33 19 May 2023
the Tenth Board of Directors News 36, etc.


Announcement on Reply to Inquiry Letter on 2022 Securities Daily B173-B174, Shanghai
2023-34 20 May 2023
Annual Report from Shenzhen Stock Exchange Securities News 161, etc.


Announcement on Resolutions of 12th Meeting of Securities Daily B42, Shanghai Securities
2023-35 27 May 2023
the Tenth Board of Directors News 100, etc.


Notice on Convening 2022 Shareholders' General Securities Daily B42, Shanghai Securities
2023-36 27 May 2023
Meeting News 100, etc.


Announcement on Accumulative Lawsuits and Securities Daily B32, Shanghai Securities
2023-37 1 June 2023
Arbitrations News 41, etc.


Announcement on Resolutions of 2022 Securities Daily B100, Shanghai Securities
2023-38 20 June 2023
Shareholders' General Meeting News 57, etc.


Announcement on Accumulative Lawsuits and Securities Daily B93, Shanghai Securities
2023-39 22 June 2023
Arbitrations News 73, etc.


Announcement on Progress in the Provision of Securities Daily B93, Shanghai Securities
2023-40 22 June 2023
External Guarantee News 73, etc.


Announcement on the Extension of outstanding
Securities Daily B39, Shanghai Securities
2023-41 11 July 2023 maturities of Dongfang Jiakang Industry M&A
News 11, etc.
Fund


Announcement on Resolutions of 14th Meeting of Securities Daily B39, Shanghai Securities
2023-42 11 July 2023
the Tenth Board of Directors News 11, etc.


Announcement on Receiving the Shenzhen Bureau
of the China Securities Regulatory Commission's Securities Daily B82, Shanghai Securities
2023-43 13 July 2023
Decision to Take Administrative Supervision News 12, etc.
Measures


Securities Daily B4, Shanghai Securities
2023-44 15 July 2023 2023 Interim Results Forecast
News 132, etc.


Announcement on Providing Financial Assistance
Securities Daily B49, Shanghai Securities
2023-45 11 August 2023 to Dongguan Guankang Yuhong Investment
News 73, etc.
Company Limited According to Shareholding Ratio


Announcement on Appointment of Audit Firms for
Securities Daily B49, Shanghai Securities
2023-46 11 August 2023 2023 Financial Statements and Internal Control
News 73, etc.
Audit




105
Konka Group Co., Ltd. Annual Report 2023


Notice on Convening 2023 Second Extraordinary Securities Daily B49, Shanghai Securities
2023-47 11 August 2023
General Meeting News 73, etc.


Announcement on Resolutions of 15th Meeting of Securities Daily B50, Shanghai Securities
2023-48 11 August 2023
the Tenth Board of Directors News 73, etc.


Announcement on the Resolutions of the 7th Securities Daily B50, Shanghai Securities
2023-49 11 August 2023
Meeting of the 10th Board of Supervisors News 73, etc.


Announcement on Issuing the Plan for the
Securities Daily B49, Shanghai Securities
2023-50 11 August 2023 Company's Private Offering of Corporate Bonds and
News 73, etc.
Providing Counter Guarantee for OCT Group


Report on the Remediation Based on the Corrective
Measures of the Shenzhen Bureau of the China Securities Daily B49, Shanghai Securities
2023-51 11 August 2023
Securities Regulatory Commission against the News 73, etc.
Company


Announcement on Progress in the Provision of Securities Daily B49, Shanghai Securities
2023-52 11 August 2023
External Guarantee News 73, etc.


Securities Daily B66, Shanghai Securities
2023-53 28 August 2023 Summary of 2023 Interim Report
News 17, etc.


Securities Daily B66, Shanghai Securities
2023-54 28 August 2023 2023 Interim Report
News 17, etc.


Announcement on Semi-annual Provision for assets Securities Daily B66, Shanghai Securities
2023-55 28 August 2023
impairment for 2023 News 17, etc.


Announcement on Resolutions of 2023 Second Securities Daily B71, Shanghai Securities
2023-56 29 August 2023
Extraordinary General Meeting News 345, etc.


15 September Announcement on Progress in the Provision of Securities Daily B56, Shanghai Securities
2023-57
2023 External Guarantee News 57, etc.


23 September Announcement on Progress of Guarantee Provision Securities Daily B11, Shanghai Securities
2023-58
2023 for Wholly-owned Subsidiaries News 12, etc.


Securities Daily B749, Shanghai Securities
2023-59 31 October 2023 The Third Quarterly Report of 2023
News 20, etc.


Announcement on the Participation in 2023
4 November Securities Daily B38, Shanghai Securities
2023-60 Shenzhen Online Group Reception Day for Listed
2023 News 49, etc.
Company Investors


18 November Announcement on Progress of Guarantee Provision Securities Daily B20, Shanghai Securities
2023-61
2023 for Wholly-owned Subsidiaries News 20, etc.


Announcement on the Receipt of SZSE No
18 November Securities Daily B20, Shanghai Securities
2023-62 Objection Letter for 2023 Corporate Bond Listing
2023 News 20, etc.
Qualification


2023-63 28 November Announcement on Overdue Shareholder Loans to Securities Daily B16, Shanghai Securities


106
Konka Group Co., Ltd. Annual Report 2023

2023 Shareholding Companies News 52, etc.


Announcement on Providing Financial Assistance
6 December Securities Daily B22, Shanghai Securities
2023-64 to Chuzhou Kangxin Health Industry Development
2023 News 28, etc.
Company Limited According to Shareholding Ratio


6 December Announcement on Resolutions of 19th Meeting of Securities Daily B22, Shanghai Securities
2023-65
2023 the Tenth Board of Directors News 28, etc.


6 December Notice on Convening 2023 Third Extraordinary Securities Daily B22, Shanghai Securities
2023-66
2023 General Meeting News 28, etc.


22 December Announcement on Progress of Guarantee Provision Securities Daily B54, Shanghai Securities
2023-67
2023 for Wholly-owned Subsidiaries News 68, etc.


22 December Announcement on Resolutions of 2023 Third Securities Daily B54, Shanghai Securities
2023-68
2023 Extraordinary General Meeting News 68, etc.


26 December Announcement on Progress of Guarantee Provision Securities Daily B54, Shanghai Securities
2023-69
2023 for Wholly-owned Subsidiaries News 68, etc.


XVII Significant Events of Subsidiaries

□ Applicable √ Not applicable




107
Konka Group Co., Ltd. Annual Report 2023




Part VII Share Changes and Shareholder Information
I Share Changes

1. Share Changes
Unit: share

Increase/decrease in the Reporting Period
Before After
(+/-)

Share
s as
Share
divide
s as
nd
divide
New conve Percent
Percenta nd Subtot
Shares issue rted Other Shares age
ge (%) conve al
s from (%)
rted
capita
from
l
profit
reserv
es

1. Restricted shares 0 0.00% 0 0.00%


2. Unrestricted shares 2,407,945,408 100.00% 2,407,945,408 100.00%


2.1 RMB-
denominated ordinary 1,596,593,800 66.31% 1,596,593,800 66.31%
shares

2.2 Domestically
811,351,608 33.69% 811,351,608 33.69%
listed foreign shares

3. Total shares 2,407,945,408 100.00% 2,407,945,408 100.00%



Reasons for the share changes:

□ Applicable √ Not applicable

Approval of the share changes:

□ Applicable √ Not applicable

Transfer of share ownership:

□ Applicable √ Not applicable

Effects of the share changes on the basic and diluted earnings per share, equity per share
attributable to the Company’s ordinary shareholders and other financial indicators of the prior year
and the prior accounting period, respectively:


108
Konka Group Co., Ltd. Annual Report 2023


□ Applicable √ Not applicable

Other information that the Company considers necessary or is required by the securities regulator to
be disclosed:

□ Applicable √ Not applicable

2. Changes in Restricted Shares

□ Applicable √ Not applicable

II Issuance and Listing of Securities

1. Securities (Exclusive of Preferred Shares) Issued in the Reporting Period

□ Applicable √ Not applicable

2. Changes to Total Shares, Shareholder Structure and Asset and Liability Structures

□ Applicable √ Not applicable

3. Existing Staff-Held Shares

□ Applicable √ Not applicable

III Shareholders and Actual Controller

1. Shareholders and Their Shareholdings at the Period-End

Unit: share


Number of ordinary Number of preferred
Number of preferred
Number of shareholders at the shareholders with resumed
shareholders with
ordinary 84,916 month-end prior to 86,489 0 voting rights at the month-end 0
resumed voting rights (if
shareholders the disclosure of this prior to the disclosure of this
any)
Report Report (if any)

5% or greater shareholders or top 10 shareholders

Share Increase/de Shares in pledge,
Total
Nature of holdi crease in Restricte marked or frozen
shares held Unrestricted
Name of shareholder sharehold ng the d shares
at the shares held
er perce Reporting held
period-end Status Shares
ntage Period

State-
OVERSEAS CHINESE
owned 21.75
TOWN HOLDINGS 523,746,932 0 0 523,746,932
legal %
COMPANY
person

CITIC SECURITIES Foreign
BROKERAGE (HONG legal 7.48% 180,001,110 0 0 180,001,110
KONG) CO., LTD. person


109
Konka Group Co., Ltd. Annual Report 2023


Domestic
WANG JINGFENG natural 2.91% 70,000,000 -35,000,000 0 70,000,000
person

Foreign
GUOYUAN SECURITIES
legal 2.48% 59,706,843 479,618 0 59,706,843
BROKER (HK) CO., LTD.
person

Foreign
HOLY TIME GROUP
legal 2.38% 57,289,100 0 0 57,289,100
LIMITED
person

Foreign
GAOLING FUND,L.P. legal 1.88% 45,366,683 -7,434,567 0 45,366,683
person

Foreign
NAMNGAI natural 0.96% 23,000,000 -19,800 0 23,000,000
person

HONG KONG SECURITIES Foreign
CLEARING COMPANY legal 0.93% 22,292,686 7,154,180 0 22,292,686
LTD. person

State-
CHINA MERCHANTS
owned
SECURITIES (HK) 0.82% 19,865,520 407,800 0 19,865,520
legal
LIMITED
person

Foreign
BOCOM INTERNATIONAL
legal 0.78% 18,896,037 0 0 18,896,037
SECURITIES LIMITED
person

Strategic investor or general legal person
becoming a top-10 ordinary shareholder N/A
due to rights issue (if any) (see note 3)

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
Related or acting-in-concert parties among
Securities Brokerage (Hong Kong) Co., Ltd. and China Merchants Securities (HK)
the shareholders above
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.

Explain if any of the shareholders above
was involved in entrusting/being entrusted N/A
with voting rights or waiving voting rights

Special account for share repurchases (if
any) among the top 10 shareholders (see None
note 10)

Top 10 unrestricted shareholders

Name of shareholder Unrestricted shares held at the Shares by type




110
Konka Group Co., Ltd. Annual Report 2023

period-end
Type Shares

OVERSEAS CHINESE TOWN RMB-denominated ordinary
523,746,932 523,746,932
HOLDINGS COMPANY stock

CITIC SECURITIES BROKERAGE Domestically listed foreign
180,001,110 180,001,110
(HONG KONG) CO., LTD. stock

RMB-denominated ordinary
WANG JINGFENG 70,000,000 70,000,000
stock

GUOYUAN SECURITIES BROKER (HK) Domestically listed foreign
59,706,843 59,706,843
CO., LTD. stock

Domestically listed foreign
HOLY TIME GROUP LIMITED 57,289,100 57,289,100
stock

Domestically listed foreign
GAOLING FUND,L.P. 45,366,683 45,366,683
stock

Domestically listed foreign
NAMNGAI 23,000,000 23,000,000
stock

HONG KONG SECURITIES CLEARING RMB-denominated ordinary
22,292,686 22,292,686
COMPANY LTD. stock

CHINA MERCHANTS SECURITIES Domestically listed foreign
19,865,520 19,865,520
(HK) LIMITED stock

BOCOM INTERNATIONAL Domestically listed foreign
18,896,037 18,896,037
SECURITIES LIMITED stock

Happy Bloom Investment Limited, a wholly-owned subsidiary of the Company’s first
majority shareholder Overseas Chinese Town Holdings Company (OCT Group), holds
Related or acting-in-concert parties among
180,001,110 and 18,360,000 ordinary shares in the Company respectively through CITIC
top 10 unrestricted public shareholders, as
Securities Brokerage (Hong Kong) Co., Ltd. and China Merchants Securities (HK)
well as between top 10 unrestricted public
Limited. Happy Bloom Investment Limited and OCT Group are parties acting in concert.
shareholders and top 10 shareholders
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
Wang Jingfeng holds 70,000,000 A-shares in the Company through his securities account
securities margin trading (if any) (see note
for customer credit trading guarantee in Guotai Junan Securities Co., Ltd.
4)


Top 10 shareholders involved in refinancing shares lending

□ Applicable √ Not applicable
Changes in top 10 shareholders compared with the prior period

□ Applicable √ Not applicable

Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted
ordinary shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yes √ No
111
Konka Group Co., Ltd. Annual Report 2023


No such cases in the Reporting Period.

2. Controlling Shareholder

Nature of the controlling shareholder: Controlled by a central state-owned legal person

Type of the controlling shareholder: legal person

Unifie
Legal Date
Name of d
representat of
actual social Principal activity
ive/person establi
controller credit
in charge shment
code

Export of textile, light industrial products, etc; import of self-used goods in
Shenzhen, mechanical equipment, light industrial products, etc. as approved by
the relevant authorities of Shenzhen (under Government Document JMB [92]
WJMGTSZZ No. A19024); compensation trade; investment in tourism and
Overseas
11 91440 relevant cultural industry (including art performance, entertainment and their
Chinese
Zhang Nove 30019 services, etc), industry, real estate, commerce & trade, packaging, decoration
Town
Zhengao mber 03461 and investment in printing industry. The convert of export commodities into
Holdings
1985 75T domestic sale and the domestic sales of import commodities. Travelling, rental
Company
of warehouses, culture and art, bonded warehouse of car donation, convention
and exhibition services (the projects involved in license management can be
operated after getting the relevant license first ); sales of automobile (sedan car
included)

As of 31 December 2023, Overseas Chinese Town Holdings Company directly held 47.01% equity of Shenzhen
Overseas Chinese Town Co., Ltd. (a company listed in Shenzhen Stock Exchange, SZ. 000069) and indirectly
Controlling
held 0.96% equity of Shenzhen Overseas Chinese Town Co., Ltd. through OCT Capital Investment Management
shareholder
Co., Ltd. Meanwhile, Shenzhen Overseas Chinese Town Co., Ltd. indirectly held 70.94% equity of OCT (Asia)
’s holdings
Holdings Ltd. (a company listed on the main Board of Hong Kong Stock Exchange, 3366.HK). Overseas Chinese
in other
Town Holdings Company indirectly held 53.88% equity of Yunnan Tourism Co., Ltd. (a company listed in
listed
Shenzhen Stock Exchange, SZ.002059).Overseas Chinese Town Holdings Company held 7.11% equity of China
companies
Everbright Bank Company Limited (a company listed on the main Board of Shanghai Stock Exchange
at home or
(SH.601818) and the main Board of Hong Kong Stock Exchange (6818.HK). Overseas Chinese Town Holdings
abroad in
Company indirectly held 2.74% equity of Zhe gian g Century Huatong Group Co., Ltd. (a company listed in
the
Shenzhen Stock Exchange, SZ.002602) through its subsidiary Shenzhen OCT Capital Investment Management
Reporting
Co., Ltd. Overseas Chinese Town Holdings Company indirectly held 11.12% of equity of Jiangsu Guoxin
Period
Corporation Limited (a company listed in Shenzhen Stock Exchange, SZ. 002608) through its subsidiary
Shenzhen OCT Capital Investment Management Co., Ltd..


Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable

No such cases in the Reporting Period.

3. Actual Controller and Its Acting-in-Concert Parties

Nature of the actual controller: Central institution for state-owned assets management

Type of the actual controller: legal person

Legal representative/person in Date of Unified social Principal
Name of actual controller
charge establishment credit code activity




112
Konka Group Co., Ltd. Annual Report 2023


State-owned Assets Supervision and
Administration Commission of the Zhang Yuzhuo Not applicable Not applicable
State Council

Actual controller’s holdings in other listed companies at home or abroad in the Reporting Period Not applicable


Change of the actual controller during the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.

Ownership and control relations between the actual controller and the Company:




Indicate by tick mark whether the actual controller controls the Company via trust or other ways of
asset management.

□ Applicable √ Not applicable

4. Number of Accumulative Pledged Shares held by the Company’s Controlling Shareholder
or the Largest Shareholder as well as Its Acting-in-Concert Parties Accounts for 80% of all
shares of the Company held by Them

□ Applicable √ Not applicable

5. Other 10% or Greater Corporate Shareholders

□ Applicable √ Not applicable

6. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder, Actual
Controller, Reorganizer and Other Commitment Makers
113
Konka Group Co., Ltd. Annual Report 2023


□ Applicable √ Not applicable

IV Specific Implementation of Share Repurchases in the Reporting Period

Progress on any share repurchases:

□ Applicable √ Not applicable

Progress on reducing the repurchased shares by means of centralized bidding:

□ Applicable √ Not applicable




114
Konka Group Co., Ltd. Annual Report 2023




Part VIII Preference Shares
□ Applicable √ Not applicable

No Preference shares in the Reporting Period.




115
Konka Group Co., Ltd. Annual Report 2023




Part IX Corporate Bonds
√ Applicable □ Not applicable

I Enterprise Bonds

□ Applicable √ Not applicable

No enterprise bonds in the Reporting Period.

II Corporate Bonds

√ Applicable □ Not applicable

1. Basic Information of the Corporate Bonds
Unit: RMB’0,000

Bonds
Way of
Value balance Interest Trade
Name Abbr. Code Issue date Due date redemptio
date (RMB’0, rate place
n
000)

Interests
shall be
paid
Privately placed
every
corporate bonds
21 8 January 8 January 8 January year and Shenzhen
in 2021 of 100,000.
Konk 114894 4.46% the Stock
Konka Group 2021 2021 2024 00
a 01 principals Exchange
Co., Ltd
shall be
(Tranche I)
repaid
when
expired.

Interests
shall be
paid
Privately placed
every
corporate bonds
21 year and Shenzhen
in 2021 of 21 May 21 May 21 May
Konk 133003 50,000.00 4.00% the Stock
Konka Group 2021 2021 2024
a 02 principals Exchange
Co., Ltd
shall be
(Tranche II)
repaid
when
expired.

Interests
shall be
Privately placed paid
corporate bonds every
21 Shenzhen
in 2021 of 9 July 9 July 9 July year and
Konk 133040 80,000.00 3.95% Stock
Konka Group 2021 2021 2024 the
a 03 Exchange
Co., Ltd principals
(Tranche III) shall be
repaid
when


116
Konka Group Co., Ltd. Annual Report 2023

expired.

Interests
shall be
Corporate bonds
paid
publicly offered
every
to professional
22 year and Shenzhen
investors in 14 July 14 July 14 July 120,000.0
Konk 149987 3.23% the Stock
2022 of Konka 2022 2022 2025 0
a 01 principals Exchange
Group Co., Ltd.
shall be
(Tranche I)
repaid
(Variety I)
when
expired.

Interests
shall be
Privately placed
paid
corporate bonds
every
to professional
22 8 8 8 year and Shenzhen
investors in
Konk 133306 Septembe Septembe Septembe 60,000.00 3.30% the Stock
2022 of Konka
a 03 r 2022 r 2022 r 2025 principals Exchange
Group Co., Ltd
shall be
(Tranche I)
repaid
(Variety I)
when
expired.

Interests
shall be
Privately placed paid
corporate bonds every
to professional 22 18 18 18 year and Shenzhen
investors in Konk 133333 October October October 60,000.00 3.50% the Stock
2022 of Konka a 05 2022 2022 2025 principals Exchange
Group Co., Ltd shall be
(Tranche II) repaid
when
expired.

Interests
shall be
Privately placed
paid
corporate bonds every
to professional 24 29 29 29 year and Shenzhen
investors in Konk 133759 January January January 150,000 4.00% the Stock
2024 of Konka a 01 2024 2024 2027 principals Exchange
Group Co., Ltd shall be
repaid
(Tranche I)
when
expired.

Interests
Privately placed shall be
corporate bonds paid
to professional every
24 year and Shenzhen
investors in 18 March 18 March 18 March
Konk 133782 40,000 4.00% the Stock
2024 of Konka 2024 2024 2027
a 02 principals Exchange
Group Co., Ltd shall be
(Tranche II) repaid
(Variety I) when
expired.




117
Konka Group Co., Ltd. Annual Report 2023


Interests
Privately placed shall be
corporate bonds paid
to professional every
24 year and Shenzhen
investors in 18 March 18 March 18 March
Konk 133783 40,000 4.03% the Stock
2024 of Konka 2024 2024 2027
a 03 principals Exchange
Group Co., Ltd shall be
(Tranche II) repaid
(Variety II) when
expired.


“21 Konka 01”, “21 Konka 02”, “21 Konka 03”, “22 Konka 03”, “22 Konka 05”, “24
Konka 01”, “24 Konka 02” and “24 Konka 03” were placed privately to professional
investors meeting the requirements of management method for investors eligibility of
Appropriate arrangement of the Shenzhen Stock Exchange, which not exceeding 200 persons. “22 Konka 01” was offered
investors (if any) publicly to professional institutional investors meeting the requirements of Measures for
the Administration of Issuing and Trading Corporate Bonds and opening a qualified A-
share securities account in Shenzhen Branch of China Securities Depository and Clearing
Corporation Limited.

Comprehensive protocol trading platform: Match-and-deal, click-and-deal, inquire-and-
Applicable trade mechanism
deal, bid-and-deal, and negotiate-and-deal

Risk of delisting (if any) and
No
countermeasures


Overdue bonds

□ Applicable √ Not applicable

2. The Trigger and Execution of the Option Clause of the Issuers or Investors and the
Investor Protection Clause

□ Applicable √ Not applicable

3. Intermediary

Signature Contact person of
Bond Intermediary Office address Contact number
accountant intermediary

Industrial 32/F, SK Building, No. 6,
Zhang Huifang,
Securities Co., Jianguomen Waidajie, / 010-50911203
Zhang Ning
Ltd Chaoyang District, Beijing

Centralized Business,
Finance and Business
21 Konka 01
District, Zone B, Zhongtian
21 Konka 02 ZTF Securities
Exhibition City, North / Qian Xi, Cai Dan 0755-28777990
21 Konka 03 Co., Ltd.
Changling Road, Guanshanhu
District, Guiyang, Guizhou
(North)

United Ratings No.2 Jianwai Street,
/ Liu Qi 010-85679696
Co., Ltd. Chaoyang District, Beijing




118
Konka Group Co., Ltd. Annual Report 2023


19-25/F, Building 2, CP
Beijing
Center, Yard 20, Jinhe East Zhang Jin xing,
Yingke Law / 0755-36866600
Road, Chaoyang District, Han Jian
Firm
Beijing

Shinewing
Certified
8/F, Block A, Fu Hua
Public
Mansion, No. 8, Liu Jianhua, Tang Liu Jianhua, Tang
Accountants 028-62922886
Chaoyangmen Beidajie, Qimei Qimei
(Special
Dongcheng District, Beijing
General
Partnership)

Industrial 32/F, SK Building, No. 6,
Zhang Huifang,
Securities Co., Jianguomen Waidajie, / 010-50911203
Zhang Ning
Ltd Chaoyang District, Beijing

Centralized Business,
Finance and Business
District, Zone B, Zhongtian
ZTF Securities
Exhibition City, North / Qian Xi, Cai Dan 0755-28777990
Co., Ltd.
Changling Road, Guanshanhu
District, Guiyang, Guizhou
(North)

United Ratings No.2 Jianwai Street,
/ Liu Qi 010-85679696
22 Konka 01 Co., Ltd. Chaoyang District, Beijing

19-25/F, Building 2, CP
Beijing
Center, Yard 20, Jinhe East Zhang Jin xing,
Yingke Law / 0755-36866600
Road, Chaoyang District, Han Jian
Firm
Beijing

Shinewing
Certified Guo Dongchao,
8/F, Block A, Fu Hua
Public Liu Lihong, Zhan
Mansion, No. 8, Liu Jianhua, Tang
Accountants Miaoling, Liu 028-62922886
Chaoyangmen Beidajie, Qimei
(Special Jianhua, Tang
Dongcheng District, Beijing
General Qimei
Partnership)

Industrial 32/F, SK Building, No. 6,
Zhang Huifang,
Securities Co., Jianguomen Waidajie, / 010-50911203
Zhang Ning
Ltd Chaoyang District, Beijing

Centralized Business,
Finance and Business
District, Zone B, Zhongtian
ZTF Securities
Exhibition City, North / Qian Xi 0755-28777990
Co., Ltd.
Changling Road, Guanshanhu
22 Konka 03 District, Guiyang, Guizhou
22 Konka 05 (North)

19-25/F, Building 2, CP
Beijing
Center, Yard 20, Jinhe East Zhang Jin xing,
Yingke Law / 0755-36866600
Road, Chaoyang District, Han Jian
Firm
Beijing


Shinewing 8/F, Block A, Fu Hua Guo Dongchao, Liu Jianhua, Tang
020-28309500
Certified Mansion, No. 8, Liu Lihong, Zhan Qimei

119
Konka Group Co., Ltd. Annual Report 2023

Public Chaoyangmen Beidajie, Miaoling, Liu
Accountants Dongcheng District, Beijing Jianhua, Tang
(Special Qimei
General
Partnership)

Industrial 32/F, SK Building, No. 6,
Zhang Huifang,
Securities Co., Jianguomen Waidajie, / 010-50911203
Zhang Ning
Ltd Chaoyang District, Beijing

China
No. 111, Fuhua 1st Road,
Merchants Chen Cheng, Feng
Futian Street, Futian District, / 0755-82943666
Securities Co. Shu
Shenzhen, Guangdong
Ltd.

23/F, Zizhu International
Sinolink Yao Heng, Qing
Building, No. 1088 Fangdian
Securities Co., / Chunlin, Zhu Jing, 021-68826021
Road, Pudong New Area,
Ltd. Zhu Caiyu
Shanghai
24 Konka 01
16/F, Building C, Huahai
24 Konka 02 Century
Financial Innovation Center, Li Jiaqing, Yang
Securities Co., / 0755-83199417
No. 5073, Menghai Avenue, Qi
24 Konka 03 Ltd.
Nanshan District, Shenzhen

19-25/F, Building 2, CP
Beijing
Center, Yard 20, Jinhe East Zhang Jin xing,
Yingke Law / 0755-36866600
Road, Chaoyang District, Han Jian
Firm
Beijing

Shinewing
Certified
8/F, Block A, Fu Hua
Public
Mansion, No. 8, Tang Qimei, Liu Tang Qimei, Liu
Accountants 020-28309500
Chaoyangmen Beidajie, Lihong Lihong
(Special
Dongcheng District, Beijing
General
Partnership)


Did the intermediary change during the Reporting Period?

□ Yes √ No

4. List of the Usage of the Raised Funds
Unit: RMB


Whether is
consistent with
Rectification of
Operation of the usage, using
raised funds for
Unused special account plan and other
Bonds Total amount Amount spent violation
amount for raised funds agreements
operation (if
(if any) stipulated in the
any)
raising
specification


21 Konka It has been
100,000.00 100,000.00 0
01 operating well Yes



120
Konka Group Co., Ltd. Annual Report 2023

and there has
21 Konka been no
50,000.00 50,000.00 0
02 violation of
relevant
21 Konka regulations and
80,000.00 80,000.00 0
03 fund
supervision
22 Konka agreements.
120,000.00 120,000.00 0
01


22 Konka
60,000.00 60,000.00 0
03


22 Konka
60,000.00 60,000.00 0
05


24 Konka 50,000.
150,000.00 100,000.00
01 00


24 Konka 40,000.
40,000.00 0
02 00


24 Konka 40,000.
40,000.00 0
03 00


The raised funds were used for project construction
□ Applicable √ Not applicable
The Company changed the usage of above funds raised from bonds during the Reporting Period.

□ Applicable √ Not applicable

5. Adjustment of Credit Rating Results during the Reporting Period

□ Applicable √ Not applicable

6. Execution and Changes of Guarantee, Repayment Plan and Other Repayment Guarantee
Measures as well as Influence on Equity of Bond Investors during the Reporting Period

√ Applicable □ Not applicable
OCT Group provides full, unconditional and irrevocable joint liability guarantee for “21 Konka
01”, “21 Konka 02”, “21 Konka 03”, “22 Konka 01”, “22 Konka 03”, “22 Konka 05”, “24
Konka 01”, “24 Konka 02” and “24 Konka 03”. The Credit Enhancement Mechanisms,
Redemption Plans and Other Redemption Security Measures during the Reporting Period are
executed according to agreement. No change occurred.

III Debt Financing Instruments of Non-financial Enterprises

□ Applicable √ Not applicable

121
Konka Group Co., Ltd. Annual Report 2023


No such cases in the Reporting Period.

IV Convertible Corporate Bonds

□ Applicable √ Not applicable

No such cases in the Reporting Period.

V Losses of Scope of Consolidated Financial Statements during the Reporting Period
Exceeding 10% of Net Assets up the Period-end of Last Year

√ Applicable □ Not applicable

Impact on the company's
Item Details of loss Reason for loss production, operation and
solvency


1. In 2023, the Company incurred a certain degree of loss in
its colour TV business due to factors such as product strategy
adjustments and ongoing supply chain fluctuations. In terms The Company will follow the
of domestic sales of colour TVs, the Company made new development strategy of
systematic adjustments to its product planning and sales "One Axis, Two Wheels and
strategies during the current period. The mid-to-high-end Three Growth Drivers," and
new products X6/M6/R7 were mainly launched in the second adhere to long-term value-
half of 2023. However, the introduction and sales ramp-up oriented principles and the
cycle of these new TV products lagged behind, failing to operational strategy of focusing
fully compensate for the clearance losses resulting from the on the long term, making profit
discontinuation of old models. This, to some extent, affected before expansion, and
the sales scale and total profit of the Company's domestic TV improving specialization before
During the business. Regarding TV exports and OEM business, due to consolidation. It will also
Reporting the continuous fluctuation in upstream supply chain costs in deepen professional integration,
Period, the 2023, the gross margin of orders delivered by the Company's implement lean management,
Company's net TV exports and OEM business was relatively low. Although and promote high-quality
Net profit
profit loss strategic adjustments helped to gradually improve the development. The Company
attributabl
attributable to operational quality in the second half of 2023, the gross will allocate resources to
e to
shareholders of margin for the full year 2023 was still unable to fully cover support the development of its
sharehold
listed rigid expenses. core business, focusing on
ers of
companies was driving the growth and
listed
RMB2,164 2. In 2023, in accordance with the Company's development profitability of the white goods
companies
million, strategy and considering the macroeconomic environment, and PCB sectors. Lean
accounting for the Company upheld the principle of "industrial park service management will be
38.34% of the aligned with core business strategy" and continued to reduce implemented to enhance value
net assets. its business in industrial parks. There were virtually no new creation and reduce losses in the
large-scale industrial park projects in 2023, resulting in a colour TV business. Innovation
decrease in related income compared to the previous year. efforts will be directed towards
capitalization and efficiency
3. In 2023, although the Company's semiconductor business output of the semiconductor
made certain achievements in several key industrial chain business, thereby creating a
technologies, it remained in the early stages of specialized business matrix. The
industrialization. R&D investment continued to grow, but loss for the reporting period will
scale and efficiency in output were not achieved, affecting not affect the normal production
the overall operating profit of the Company. and operation of the Company
4. In 2023, based on the principle of prudence, the Company and the repayment of debts due.
made a provision for asset impairment of approximately
RMB1,017million in accordance with accounting policies

122
Konka Group Co., Ltd. Annual Report 2023

and estimates, resulting in a decrease in profit.

5. In 2023, the Company strategically optimized non-core
operations such as industry trade and environmental
protection, resulting in a narrowing of profit sources and a
decrease in related income.


VI Matured Interest-bearing Debt excluding Bonds up the Period-end

□ Applicable √ Not applicable

VII Whether there was any Violation of Rules and Regulations during the Reporting Period

□ Yes √ No

VIII The Major Accounting Data and the Financial Indicators of the Recent 2 Years of the
Company up the Period-end
Unit: RMB’0,000

Item 31 December 2023 31 December 2022 Increase/decrease

Current ratio 87.69% 118.17% -25.79%

Debt/asset ratio 83.51% 77.74% 5.77%

Quick ratio 70.07% 88.59% -20.91%


2023 2022 Increase/decrease

Net profit after deducting
-291,444.51 -266,555.04 -9.34%
non-recurring profit or loss

EBITDA/debt ratio -6.33% -3.45% -2.88%

Times interest earned -3.50 -1.99 -75.88%

Times interest earned of cash 2.17 0.42 416.67%

Times interest earned of
-2.39 -1.12 -113.39%
EBITDA

Loan repayment rate 100.00% 100.00% 0.00%

Interest coverage 100.00% 100.00% 0.00%




123
Konka Group Co., Ltd. Annual Report 2023




Part X Financial Statements
I Independent Auditor’s Report

Type of the independent auditor’s opinion Unmodified unqualified opinion


Date of signing this report 29 March 2024


ShineWing Certified Public Accountants (Special General
Name of the independent auditor
Partnership)


Reference number of audit report XYZH/2024SZAA8B0233


Name of the certified public accountants Tang Qimei, Liu Lihong


Independent Auditor’s Report
XYZH/2024SZAA8B0233

Konka Group Co., Ltd.

All shareholders of Konka Group Co., Ltd.: 

I. Opinion

We have audited the accompanying financial statements of Konka Group Co., Ltd. (the “Konka
Group” ), which comprise the Company’s and consolidated balance sheets of the parent company as
at 31 December 2023, the Company’s and consolidated income statements of the parent company,
the Company’s and consolidated cash flow statements of the parent company, the Company’s and
consolidated statements of changes in shareholders’ equity of the parent company for the year then
ended, as well as the notes to the financial statements.

In our opinion, the financial statements attached were prepared in line with the regulations of
Accounting Standards for Business Enterprises in all significant aspects which gave a true and fair
view of the consolidated and parent financial position of the Company as at 31 December 2023 and
the consolidated and parent business performance and cash flow of the Company for 2023.

II. Basis for Opinion

We conducted our audit in accordance with Standards on Auditing for Certified Public Accountants.
Our responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Financial Statements section of our report. In accordance with professional ethics
for certified public accountants, we are independent with Foshan Huaxin Packing Co., Ltd. and we
have fulfilled our other ethical responsibilities. We believe that the audit evidence we have obtained

124
Konka Group Co., Ltd. Annual Report 2023


is sufficient and appropriate to provide a basis for our opinion.

III. Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial statements of the Current Period. These matters were addressed in the
context of our audit of the financial statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters.

1. Recognition of operating revenues


Key audit matters Countermeasures of audit


Please refer to the notes to the financial statements "six, (1) Evaluate and test income to confirm the
notes to the consolidated financial statements" 50. In 2023, effectiveness of key internal control design and
Konka Group's consolidated financial statements operation;
confirmed operating income of RMB17,849,331,400, the
(2) Obtain signed sales contracts, analyze relevant
mainly revenue comes from the Color TV, white goods,
provisions, and evaluate whether the revenue
optoelectronic display, storage and printed circuit boards,
recognition of Konka Group is in compliance with the
etc. Due to the importance of revenue to the financial
Accounting Standards for Business Enterprises;
statements as a whole, and the inherent misstatement risk
of management's manipulation of revenue recognition in (3) Obtain the sales list of Konka Group products,

order to achieve specific goals or expectations, we make examine the customers’ information registered with the

revenue recognition a key audit matter. industrial and commercial administration, inquire the
relevant personnel of Konka Group, and identify
whether any of the customers is a related party to
Konka Group;

(4) Perform analytical procedures on revenue and costs,
evaluate the rationality of sales revenue and gross profit
margin changes;

(5) Examine materials such as important sales contracts,
orders, invoices, goods ownership transfer certificates,
bank receipts, invoices; select important customers,
verify the transaction amounts and balances in writing
to verify the truthfulness, completeness and accuracy of
revenue;

(6) Conduct a cut-off test on sales revenue.




125
Konka Group Co., Ltd. Annual Report 2023



2. Recognition of investment income


Key audit matters Countermeasures of audit


Please refer to the notes to the financial statements "six, (1) Evaluate and test income to confirm the
notes to the consolidated financial statements" 57. In 2023, effectiveness of key internal control design and
Konka Group's consolidated financial statements operation;
confirmed investment income of RMB675,405,200, the
(2) Obtaining relevant decision-making documents for
mainly revenue comes from the investment income from
the disposal of the target company's equity, as well as
the transfer of long-term equity investments held by Konka
equity transfer agreements and transaction documents,
Group to financial assets held for trading as a result of the
conducting interviews with the Konka Group company's
reduction of its holdings in the secondary market during
management and selected equity transferees to
the year, as well as investment income arising from the
understand the commercial background and rationality
disposal of long-term equity investments in certain
of the equity transfer, in order to determine the
subsidiaries. Since the amount of investment income is
authenticity of the equity transfer;
significant, we confirm the recognition of investment
income as a key audit matter. (3) Obtaining bank receipt certificates for the transfer of
equity and inquiring about industrial and commercial
changes in the company that is the subject of the
transfer of equity so as to determine whether the
formalities related to the transfer of shares have been
completed;

(4) Review the fairness of the consideration for the
equity transaction and check whether the measurement
of investment income from the disposal of equity
interests is in accordance with the provisions of
enterprise accounting standards;

(5) The procedures implemented in response to the
change of the accounting method for the Konka Group
Company's equity investment are as follows:

① Obtain decision-making documents related to the
change of accounting methods, interview the
management and invested company controlling
shareholders of the Konka Group Company, and obtain
relevant information;

② Based on the information obtained and the


126
Konka Group Co., Ltd. Annual Report 2023


interviews, evaluate whether the Konka Group
Company's equity interest in the investee company has
significant influence on the investee company, and

analyze whether the Konka Group Company's
accounting for the matter of identifying the equity
investment as an investment in an equity instrument for
trading and designating it as a financial asset at fair
value through profit or loss is consistent with the
provisions of the Accounting Standards for Business
Enterprises.

(6) Review the calculation process of Konka Group's
equity transfer and accounting method change to
confirm investment income, and check whether the
calculation of investment income is accurate.


IV. Other Information

The management of the Company is responsible for the other information. The other information
comprises all of the information included in the annual report for 2023 other than the financial
statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with
the financial statements or our knowledge obtained in the audit or otherwise appears to be
materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.

V. Responsibility of Management and Those Charged with Governance for the Financial
Statements

The management of the Company is responsible for the preparation and fair presentation of these
financial statements in accordance with Accounting Standards for Business Enterprises to make
them a fair presentation and designing, implementing and maintaining internal control relevant to
the preparation of financial statements that are free from material misstatement, whether due to
fraud or error.

127
Konka Group Co., Ltd. Annual Report 2023


In preparing the financial statements, the management of the Company is responsible for assessing
the Company’s ability to continue as a going concern, disclosing, if applicable, matters related to
going concern and using the going concern basis of accounting unless the management either
intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting
process.

VI. CPA’s Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. We report our opinion solely to you, as a body, and for no other purpose.
We do not assume responsibility towards or accept liability to any other person for the contents of
this report. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with auditing standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of these financial statements.

As part of an audit in accordance with auditing standards, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:

(1) Identify and assess the risks of major misstatement of financial statements due to fraud or errors,
design and implement audit procedures to deal with these risks, and obtain sufficient and
appropriate audit evidence as the basis for issuing audit opinions. Since fraud may involve collusion,
forgery, intentional omissions, misrepresentation, or overriding internal control, the risk of failing to
detect a major misstatement due to fraud is higher than the risk of failing to detect a major
misstatement due to error.

(2) Understand the internal control related to auditing in order to design appropriate auditing
procedures.

(3) Evaluate the appropriateness of management's selection of accounting policies and the
rationality of accounting estimates and related disclosures.

(4) To draw conclusions on the appropriateness of the management's use of continuous operation
assumptions. At the same time, based on the audit evidence obtained, a conclusion can be drawn on
whether there is a material uncertainty that may cause significant doubts about Konka Group's
ability to continue operations. If we conclude that there are significant uncertainties, the auditing
standards require us to draw the attention of the users of the statements to the relevant disclosures in

128
Konka Group Co., Ltd. Annual Report 2023


the financial statements in the audit report; if the disclosures are insufficient, we should issue a non-
reserved opinion. Our conclusion is based on the information available as of the date of the audit
report. However, future events or circumstances may prevent Konka Group from continuing its
operations.

(5) Evaluate the overall presentation, structure, and content of the financial statements, and evaluate
whether the financial statements fairly reflect related transactions and events.

We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and
related safeguards (if applicable).

From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the financial statements of the Current Period and are
therefore the key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of
such communication.




ShineWing Certified Public Accountants CPA: (Engagement Partner)

(Special General Partnership)


CPA:


BeijingChina 29 March 2024




129
Konka Group Co., Ltd. Annual Report 2023


II Financial Statements

Currency unit for the financial statements and the notes thereto: RMB

1. Consolidated Balance Sheet

Prepared by Konka Group Co., Ltd.

31 December 2023


Unit: RMB

Item 31 December 2023 1 January 2023

Current assets:

Monetary assets 6,506,359,577.02 5,988,095,490.71

Settlement reserve

Interbank loans granted

Held-for-trading financial assets 469,636,700.78

Derivative financial assets

Notes receivable 533,171,949.15 1,059,737,243.54

Accounts receivable 1,726,545,973.08 2,036,734,836.22

Accounts receivable financing 173,396,326.14 237,187,228.44

Prepayments 165,454,311.51 389,947,652.39

Premiums receivable

Reinsurance receivables

Receivable reinsurance contract reserve

Other receivables 989,121,067.51 1,442,124,845.58

Including: Interest receivable 6,681,258.01 3,878,580.64

Dividends receivable 941,482.38 272,999.43

Financial assets purchased under resale
agreements

Inventories 3,249,897,700.98 4,409,767,756.22



130
Konka Group Co., Ltd. Annual Report 2023


Contract assets 2,190,385.93

Assets held for sale

Current portion of non-current assets 14,630,000.00

Other current assets 2,359,159,468.75 2,038,841,225.83

Total current assets 16,174,933,460.85 17,617,066,278.93

Non-current assets:

Loans and advances to customers

Investments in debt obligations

Investments in other debt obligations

Long-term receivables 800,400.00

Long-term equity investments 5,566,483,863.29 6,351,232,955.58

Investments in other equity
23,841,337.16 23,841,337.16
instruments

Other non-current financial assets 2,009,676,398.00 2,639,662,273.32

Investment property 1,470,226,723.87 802,407,844.60

Fixed assets 5,218,297,745.16 4,114,029,693.38

Construction in progress 860,899,498.68 1,990,361,377.07

Productive living assets

Oil and gas assets

Right-of-use assets 197,054,423.17 50,019,838.68

Intangible assets 1,087,386,015.34 1,116,739,707.27

Development costs

Goodwill 22,196,735.11 22,196,735.11

Long-term prepaid expense 518,919,223.71 387,309,503.07

Deferred income tax assets 1,426,573,982.16 1,197,406,370.65

Other non-current assets 1,248,328,806.16 1,710,245,378.26

Total non-current assets 19,649,884,751.81 20,406,253,414.15


131
Konka Group Co., Ltd. Annual Report 2023


Total assets 35,824,818,212.66 38,023,319,693.08

Current liabilities:

Short-term borrowings 6,390,592,056.27 7,579,559,304.97

Borrowings from the central bank

Interbank loans obtained

Held-for-trading financial liabilities

Derivative financial liabilities

Notes payable 990,482,927.20 1,054,573,822.04

Accounts payable 2,726,831,675.97 2,659,946,562.93

Advances from customers 825.69

Contract liabilities 527,975,160.12 601,044,358.35

Financial assets sold under repurchase
agreements

Customer deposits and interbank
deposits

Payables for acting trading of securities

Payables for underwriting of securities

Employee benefits payable 304,733,103.63 348,608,204.05

Taxes payable 214,417,135.87 291,102,679.36

Other payables 1,922,791,905.14 1,895,711,373.34

Including: Interest payable 29,590,464.00

Dividends payable

Handling charges and commissions
payable

Reinsurance payables

Liabilities directly associated with
assets held for sale

Current portion of non-current
5,314,147,396.36 409,220,030.69
liabilities



132
Konka Group Co., Ltd. Annual Report 2023


Other current liabilities 54,330,715.75 68,449,783.71

Total current liabilities 18,446,302,076.31 14,908,216,945.13

Non-current liabilities:

Insurance contract reserve

Long-term borrowings 7,779,150,079.88 8,906,931,402.89

Bonds payable 2,426,992,578.67 4,792,392,044.13

Including: Preferred shares

Perpetual bonds

Lease liabilities 160,218,818.92 36,586,639.16

Long-term payables 6,135,734.07 7,964,127.18

Long-term employee benefits payable 4,718,466.37 4,894,209.73

Provisions 304,519,839.80 159,395,579.55

Deferred income 425,135,237.90 334,844,966.31

Deferred income tax liabilities 185,026,165.27 95,427,298.31

Other non-current liabilities 179,996,351.33 314,233,260.08

Total non-current liabilities 11,471,893,272.21 14,652,669,527.34

Total liabilities 29,918,195,348.52 29,560,886,472.47

Owners’ equity:

Share capital 2,407,945,408.00 2,407,945,408.00

Other equity instruments

Including: Preferred shares

Perpetual bonds

Capital reserves 526,499,506.76 365,247,361.05

Less: Treasury stock

Other comprehensive income -13,443,558.44 -14,265,181.63

Specific reserve 4,657,488.24



133
Konka Group Co., Ltd. Annual Report 2023


Surplus reserves 1,244,180,364.24 1,244,180,364.24

General reserve

Retained earnings 1,474,561,975.85 3,638,352,029.02

Total equity attributable to owners of the
5,644,401,184.65 7,641,459,980.68
Company as the parent

Non-controlling interests 262,221,679.49 820,973,239.93

Total owners’ equity 5,906,622,864.14 8,462,433,220.61

Total liabilities and owners’ equity 35,824,818,212.66 38,023,319,693.08


Legal representative: Zhou Bin CFO: Li Chunlei Head of the financial department: Ping Heng

2. Balance Sheet of the Company as the Parent
Unit: RMB

Item 31 December 2023 1 January 2023

Current assets:

Monetary assets 4,739,026,071.80 3,987,295,740.42

Held-for-trading financial assets 469,636,700.78

Derivative financial assets

Notes receivable 212,545,745.69 353,764,106.66

Accounts receivable 2,907,508,425.51 4,473,878,994.50

Accounts receivable financing

Prepayments 3,050,914,644.86 2,105,477,988.44

Other receivables 7,962,523,971.43 10,342,326,355.05

Including: Interest receivable 6,325,400.49 3,878,580.64

Dividends receivable 395,209,709.13 393,563,347.61

Inventories 74,359,735.29 173,658,748.80

Contract assets

Assets held for sale

Current portion of non-current assets


134
Konka Group Co., Ltd. Annual Report 2023


Other current assets 1,776,247,847.16 1,581,440,821.79

Total current assets 21,192,763,142.52 23,017,842,755.66

Non-current assets:

Investments in debt obligations

Investments in other debt obligations

Long-term receivables

Long-term equity investments 8,353,187,518.14 9,100,689,137.42

Investments in other equity
17,940,215.36 17,940,215.36
instruments

Other non-current financial assets 396,353,137.96 396,353,137.96

Investment property 896,398,058.58 439,835,051.61

Fixed assets 408,039,474.28 418,021,638.28

Construction in progress 10,456,702.05 481,659,536.66

Productive living assets

Oil and gas assets

Right-of-use assets 1,341,125.40

Intangible assets 44,546,041.59 65,620,126.31

Development costs

Goodwill

Long-term prepaid expense 43,352,655.77 36,665,581.09

Deferred income tax assets 1,186,943,851.11 1,127,531,647.49

Other non-current assets 42,958,066.97 458,931.60

Total non-current assets 11,400,175,721.81 12,086,116,129.18

Total assets 32,592,938,864.33 35,103,958,884.84

Current liabilities:

Short-term borrowings 2,344,154,349.99 2,217,049,472.22

Held-for-trading financial liabilities


135
Konka Group Co., Ltd. Annual Report 2023


Derivative financial liabilities

Notes payable 83,813,428.75 890,526,510.04

Accounts payable 6,459,535,317.41 6,918,579,963.57

Advances from customers

Contract liabilities 943,718,573.19 2,445,363,632.98

Employee benefits payable 65,273,780.70 90,137,022.47

Taxes payable 9,069,845.15 4,095,684.11

Other payables 3,471,748,973.76 3,941,891,644.62

Including: Interest payable 29,271,307.22

Dividends payable

Liabilities directly associated with
assets held for sale

Current portion of non-current
5,206,842,165.89 151,933,839.55
liabilities

Other current liabilities 9,728,362.56 7,129,729.38

Total current liabilities 18,593,884,797.40 16,666,707,498.94

Non-current liabilities:

Long-term borrowings 6,655,411,621.10 8,261,287,052.44

Bonds payable 2,426,992,578.67 4,792,392,044.13

Including: Preferred shares

Perpetual bonds

Lease liabilities

Long-term payables

Long-term employee benefits payable

Provisions 201,607,949.06 83,666,032.25

Deferred income 40,966,821.50 43,377,324.62

Deferred income tax liabilities 69,803,544.47




136
Konka Group Co., Ltd. Annual Report 2023


Other non-current liabilities 45,682,878.82 42,948,698.55

Total non-current liabilities 9,440,465,393.62 13,223,671,151.99

Total liabilities 28,034,350,191.02 29,890,378,650.93

Owners’ equity:

Share capital 2,407,945,408.00 2,407,945,408.00

Other equity instruments

Including: Preferred shares

Perpetual bonds

Capital reserves 341,229,750.75 241,044,390.55

Less: Treasury stock

Other comprehensive income -1,399,371.64 -1,500,000.00

Specific reserve

Surplus reserves 1,260,024,039.76 1,260,024,039.76

Retained earnings 550,788,846.44 1,306,066,395.60

Total owners’ equity 4,558,588,673.31 5,213,580,233.91

Total liabilities and owners’ equity 32,592,938,864.33 35,103,958,884.84


3. Consolidated Income Statement
Unit: RMB

Item 2023 2022

1. Revenue 17,849,331,429.24 29,607,854,255.27

Including: Operating revenue 17,849,331,429.24 29,607,854,255.27

Interest revenue

Insurance premium income

Handling charge and commission income

2. Costs and expenses 20,267,187,420.23 32,164,076,308.01

Including: Cost of sales 17,149,036,750.50 28,788,638,393.88



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Konka Group Co., Ltd. Annual Report 2023


Interest costs

Handling charge and commission
expense

Surrenders

Net insurance claims paid

Net amount provided as insurance
contract reserve

Expenditure on policy dividends

Reinsurance premium expense

Taxes and surcharges 105,488,040.47 119,339,820.01

Selling expense 1,145,124,848.96 1,240,144,735.77

Administrative expense 807,527,910.20 949,647,590.28

R&D expense 497,993,759.86 543,882,024.89

Finance costs 562,016,110.24 522,423,743.18

Including: Interest expense 884,535,066.01 913,721,408.10

Interest income 286,969,209.86 237,115,652.09

Add: Other income 270,618,031.94 928,712,500.81

Return on investment ( “-” for loss) 675,405,221.53 936,006,397.44

Including: Share of profit or loss of joint
-170,413,352.22 123,392,731.97
ventures and associates

Income from the derecognition of
financial assets at amortized cost ( “-” for -4,507,260.06
loss)

Exchange gain ( “-” for loss)

Net gain on exposure hedges ( “-” for
loss)

Gain on changes in fair value ( “-” for
-97,937,910.89 -40,731,333.54
loss)

Credit impairment loss ( “-” for loss) -456,603,000.84 -949,885,019.53

Asset impairment loss ( “-” for loss) -560,592,965.39 -295,395,852.33




138
Konka Group Co., Ltd. Annual Report 2023


Asset disposal income ( “-” for loss) 54,321.20 9,580,708.29

3. Operating profit ( “-” for loss) -2,586,912,293.44 -1,967,934,651.60

Add: Non-operating income 26,263,072.49 125,139,042.00

Less: Non-operating expense 156,685,855.03 224,724,245.84

4. Profit before tax ( “-” for loss) -2,717,335,075.98 -2,067,519,855.44

Less: Income tax expense -81,448,414.64 -298,299,507.08

5. Net profit ( “-” for net loss) -2,635,886,661.34 -1,769,220,348.36

5.1 By operating continuity

5.1.1 Net profit from continuing
-2,635,886,661.34 -1,769,220,348.36
operations ( “-” for net loss)

5.1.2 Net profit from discontinued
operations ( “-” for net loss)

5.2 By ownership

5.2.1 Net profit attributable to
shareholders of the Company as the -2,163,790,053.17 -1,470,466,806.68
parent

5.2.1 Net profit attributable to non-
-472,096,608.17 -298,753,541.68
controlling interests

6. Other comprehensive income, net of
-84,979.37 7,669,161.80
tax

Attributable to owners of the Company
821,623.19 6,070,906.24
as the parent

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

139
Konka Group Co., Ltd. Annual Report 2023


6.2 Items that will be reclassified to
821,623.19 6,070,906.24
profit or loss

6.2.1 Other comprehensive income that
will be reclassified to profit or loss under -86,041.63 -2,814,803.62
the equity method

6.2.2 Changes in the fair value of
investments in other debt obligations

6.2.3 Other comprehensive income
arising from the reclassification of
financial assets

6.2.4 Credit impairment allowance for
investments in other debt obligations

6.2.5 Reserve for cash flow hedges

6.2.6 Differences arising from the
translation of foreign currency- 907,664.82 8,885,709.86
denominated financial statements

6.2.7 Other

Attributable to non-controlling interests -906,602.56 1,598,255.56

7. Total comprehensive income -2,635,971,640.71 -1,761,551,186.56

Attributable to owners of the Company
-2,162,968,429.98 -1,464,395,900.44
as the parent

Attributable to non-controlling interests -473,003,210.73 -297,155,286.12

8. Earnings per share

8.1 Basic earnings per share -0.8986 -0.6107

8.2 Diluted earnings per share -0.8986 -0.6107


Legal representative: Zhou Bin CFO: Li Chunlei Head of the financial department: Ping Heng

4. Income Statement of the Company as the Parent
Unit: RMB

Item 2023 2022

1. Operating revenue 1,847,995,092.79 1,811,783,519.02

Less: Cost of sales 1,881,115,675.91 1,962,490,364.97

Taxes and surcharges 13,005,236.44 15,338,452.88




140
Konka Group Co., Ltd. Annual Report 2023


Selling expense 246,898,982.08 366,876,186.97

Administrative expense 294,635,923.59 336,016,963.92

R&D expense 33,956,995.43 72,787,542.14

Finance costs 417,683,630.95 285,666,822.84

Including: Interest costs 790,542,260.97 819,229,878.82

Interest revenue 357,509,620.15 353,261,761.47

Add: Other income 51,184,013.42 54,121,427.81

Return on investment ( “-” for loss) 644,677,669.41 538,946,392.20

Including: Share of profit or loss of joint
-34,502,328.35 138,908,805.41
ventures and associates

Income from the derecognition of
financial assets at amortized cost ( “-” for
loss)

Net gain on exposure hedges ( “-” for
loss)

Gain on changes in fair value ( “-” for
-133,358,646.82 -44,886,112.74
loss)

Credit impairment loss ( “-” for loss) -86,470,747.72 -711,816,020.43

Asset impairment loss ( “-” for loss) -90,170,750.24 -355,291,000.36

Asset disposal income ( “-” for loss) -17,987.13 6,034,182.85

2. Operating profit ( “-” for loss) -653,457,800.69 -1,740,283,945.37

Add: Non-operating income 2,160,817.77 91,504,267.54

Less: Non-operating expense 87,467,742.44 64,661,744.87

3. Profit before tax ( “-” for loss) -738,764,725.36 -1,713,441,422.70

Less: Income tax expense 10,424,753.35 -415,717,523.01

4. Net profit ( “-” for net loss) -749,189,478.71 -1,297,723,899.69

4.1 Net profit from continuing
-749,189,478.71 -1,297,723,899.69
operations ( “-” for net loss)

4.2 Net profit from discontinued
operations ( “-” for net loss)

5. Other comprehensive income, net of 100,628.36

141
Konka Group Co., Ltd. Annual Report 2023

tax

5.1 Items that will not be reclassified to
profit or loss

5.1.1 Changes caused by
remeasurements on defined benefit
schemes

5.1.2 Other comprehensive income that
will not be reclassified to profit or loss
under the equity method

5.1.3 Changes in the fair value of
investments in other equity instruments

5.1.4 Changes in the fair value arising
from changes in own credit risk

5.1.5 Other

5.2 Items that will be reclassified to
100,628.36
profit or loss

5.2.1 Other comprehensive income that
will be reclassified to profit or loss under 100,628.36
the equity method

5.2.2 Changes in the fair value of
investments in other debt obligations

5.2.3 Other comprehensive income
arising from the reclassification of
financial assets

5.2.4 Credit impairment allowance for
investments in other debt obligations

5.2.5 Reserve for cash flow hedges

5.2.6 Differences arising from the
translation of foreign currency-
denominated financial statements

5.2.7 Other

6. Total comprehensive income -749,088,850.35 -1,297,723,899.69

7. Earnings per share

7.1 Basic earnings per share -0.31 -0.54

7.2 Diluted earnings per share -0.31 -0.54




142
Konka Group Co., Ltd. Annual Report 2023


5. Consolidated Cash Flow Statement
Unit: RMB

Item 2023 2022

1. Cash flows from operating activities:

Proceeds from sale of commodities and
17,378,235,561.44 31,247,109,491.35
rendering of services

Net increase in customer deposits and
interbank deposits

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, handling charges and
commissions received

Net increase in interbank loans obtained

Net increase in proceeds from
repurchase transactions

Net proceeds from acting trading of
securities

Tax rebates 233,820,738.77 622,846,091.66

Cash generated from other operating
1,091,889,678.99 1,597,087,027.13
activities

Subtotal of cash generated from
18,703,945,979.20 33,467,042,610.14
operating activities

Payments for commodities and services 14,643,693,951.06 29,639,887,809.19

Net increase in loans and advances to
customers

Net increase in deposits in the central
bank and in interbank loans granted



143
Konka Group Co., Ltd. Annual Report 2023


Payments for claims on original
insurance contracts

Net increase in interbank loans granted

Interest, handling charges and
commissions paid

Policy dividends paid

Cash paid to and for employees 1,734,831,096.85 1,800,638,478.78

Taxes paid 466,335,778.71 585,416,375.42

Cash used in other operating activities 1,305,983,874.68 1,969,402,988.58

Subtotal of cash used in operating
18,150,844,701.30 33,995,345,651.97
activities

Net cash generated from/used in
553,101,277.90 -528,303,041.83
operating activities

2. Cash flows from investing activities:

Proceeds from disinvestment 1,463,288,277.00 875,506,214.56

Return on investment 140,970,812.05 128,778,266.85

Net proceeds from the disposal of fixed
assets, intangible assets and other long- 27,438,051.10 9,239,243.90
lived assets

Net proceeds from the disposal of
165,963,074.98 297,094,350.04
subsidiaries and other business units

Cash generated from other investing
683,929,746.03 3,988,535,308.42
activities

Subtotal of cash generated from
2,481,589,961.16 5,299,153,383.77
investing activities

Payments for the acquisition of fixed
assets, intangible assets and other long- 1,476,559,951.04 3,613,087,559.62
lived assets

Payments for investments 7,200,000.00 877,816,559.18

Net increase in pledged loans granted

Net payments for the acquisition of
subsidiaries and other business units

Cash used in other investing activities 529,573,236.98 482,014,454.76

Subtotal of cash used in investing 2,013,333,188.02 4,972,918,573.56

144
Konka Group Co., Ltd. Annual Report 2023

activities

Net cash generated from/used in
468,256,773.14 326,234,810.21
investing activities

3. Cash flows from financing activities:

Capital contributions received 1,978,378.97 87,895,628.12

Including: Capital contributions by non-
1,978,378.97 87,895,628.12
controlling interests to subsidiaries

Borrowings raised 10,950,030,506.74 20,760,552,594.08

Cash generated from other financing
738,205,183.98 525,285,976.82
activities

Subtotal of cash generated from
11,690,214,069.69 21,373,734,199.02
financing activities

Repayment of borrowings 10,672,675,811.70 19,821,101,947.09

Interest and dividends paid 812,403,661.30 1,025,755,719.07

Including: Dividends paid by
735,000.00 110,680,000.00
subsidiaries to non-controlling interests

Cash used in other financing activities 1,036,318,624.40 859,164,470.60

Subtotal of cash used in financing
12,521,398,097.40 21,706,022,136.76
activities

Net cash generated from/used in
-831,184,027.71 -332,287,937.74
financing activities

4. Effect of foreign exchange rates
22,698,315.32 27,920,961.23
changes on cash and cash equivalents

5. Net increase in cash and cash
212,872,338.65 -506,435,208.13
equivalents

Add: Cash and cash equivalents,
5,461,912,010.90 5,968,347,219.03
beginning of the period

6. Cash and cash equivalents, end of the
5,674,784,349.55 5,461,912,010.90
period


6. Cash Flow Statement of the Company as the Parent
Unit: RMB

Item 2023 2022

1. Cash flows from operating activities:



145
Konka Group Co., Ltd. Annual Report 2023


Proceeds from sale of commodities and
5,703,782,163.83 7,297,996,873.73
rendering of services

Tax rebates 70,166,100.06 230,063,490.93

Cash generated from other operating
208,374,488.43 372,486,582.46
activities

Subtotal of cash generated from
5,982,322,752.32 7,900,546,947.12
operating activities

Payments for commodities and services 6,122,040,543.84 7,900,208,310.15

Cash paid to and for employees 250,167,106.81 312,957,158.05

Taxes paid 21,411,524.06 44,490,340.42

Cash used in other operating activities 382,250,859.55 927,360,896.15

Subtotal of cash used in operating
6,775,870,034.26 9,185,016,704.77
activities

Net cash generated from/used in
-793,547,281.94 -1,284,469,757.65
operating activities

2. Cash flows from investing activities:

Proceeds from disinvestment 962,711,727.95 572,941,738.40

Return on investment 73,394,567.02 70,285,307.27

Net proceeds from the disposal of fixed
assets, intangible assets and other long- 493,918.22 66,770.14
lived assets

Net proceeds from the disposal of
subsidiaries and other business units

Cash generated from other investing
4,984,828,057.53 6,707,788,692.79
activities

Subtotal of cash generated from
6,021,428,270.72 7,351,082,508.60
investing activities

Payments for the acquisition of fixed
assets, intangible assets and other long- 126,046,197.64 219,097,737.67
lived assets

Payments for investments 139,400,000.00 896,121,280.49

Net payments for the acquisition of
subsidiaries and other business units

Cash used in other investing activities 3,091,985,302.32 6,311,902,161.21



146
Konka Group Co., Ltd. Annual Report 2023


Subtotal of cash used in investing
3,357,431,499.96 7,427,121,179.37
activities

Net cash generated from/used in
2,663,996,770.76 -76,038,670.77
investing activities

3. Cash flows from financing activities:

Capital contributions received

Borrowings raised 8,177,775,555.56 17,271,455,216.03

Cash generated from other financing
9,919,391,242.45 15,043,752,843.76
activities

Subtotal of cash generated from
18,097,166,798.01 32,315,208,059.79
financing activities

Repayment of borrowings 7,748,613,878.32 15,948,765,699.19

Interest and dividends paid 816,702,948.88 814,951,365.94

Cash used in other financing activities 10,977,125,705.33 15,040,575,205.97

Subtotal of cash used in financing
19,542,442,532.53 31,804,292,271.10
activities

Net cash generated from/used in
-1,445,275,734.52 510,915,788.69
financing activities

4. Effect of foreign exchange rates
4,531,990.24 597,369.19
changes on cash and cash equivalents

5. Net increase in cash and cash
429,705,744.54 -848,995,270.54
equivalents

Add: Cash and cash equivalents,
3,833,613,544.22 4,682,608,814.76
beginning of the period

6. Cash and cash equivalents, end of the
4,263,319,288.76 3,833,613,544.22
period




147
Konka Group Co., Ltd. Annual Report 2023

7. Consolidated Statements of Changes in Owners’ Equity
2023

Unit: RMB


2023


Equity attributable to owners of the Company as the parent


Other equity G
Item instruments en O
Less: Spec er t Non-controlling Total owners’
Other interests equity
Capital Trea ific al h
Share capital O comprehensive Surplus reserves Retained earnings Subtotal
Prefe reserves sury reser re e
Perpet t income
rred stock ve se r
ual h
share rv
bonds e
s e
r


1. Balance as at the end of the
2,407,945,408.00 365,247,361.05 -14,265,181.63 1,244,180,364.24 3,637,291,770.33 7,640,399,721.99 820,973,239.93 8,461,372,961.92
prior year


Add: Adjustment for change in
1,060,258.69 1,060,258.69 1,060,258.69
accounting policy


Adjustment for correction of
previous error


Other adjustments


2. Balance as at the beginning
2,407,945,408.00 365,247,361.05 -14,265,181.63 1,244,180,364.24 3,638,352,029.02 7,641,459,980.68 820,973,239.93 8,462,433,220.61
of the year


4,657
3. Increase/ decrease in the
161,252,145.71 821,623.19,488. -2,163,790,053.17 -1,997,058,796.03 -558,751,560.44 -2,555,810,356.47
period ( “-” for decrease) 24


3.1 Total comprehensive
821,623.19 -2,163,790,053.17 -2,162,968,429.98 -473,003,210.73 -2,635,971,640.71
income



148
Konka Group Co., Ltd. Annual Report 2023

3.2 Capital increased and
161,252,145.71 161,252,145.71 -86,392,628.48 74,859,517.23
reduced by owners


3.2.1 Ordinary shares increased
-16,021,621.03 -16,021,621.03
by owners


3.2.2 Capital increased by
holders of other equity
instruments


3.2.3 Share-based payments
included in owners’ equity


3.2.4 Other 161,252,145.71 161,252,145.71 -70,371,007.45 90,881,138.26


3.3 Profit distribution -735,000.00 -735,000.00


3.3.1 Appropriation to
surplus reserves


3.3.2 Appropriation to
general reserve


3.3.3 Appropriation to
-735,000.00 -735,000.00
owners (or shareholders)


3.3.4 Other


3.4 Transfers within owners’
equity


3.4.1 Increase in capital (or
share capital) from capital
reserves


3.4.2 Increase in capital (or
share capital) from surplus
reserves




149
Konka Group Co., Ltd. Annual Report 2023

3.4.3 Loss offset by surplus
reserves


3.4.4 Changes in defined
benefit schemes transferred to
retained earnings


3.4.5 Other comprehensive
income transferred to retained
earnings


3.4.6 Other


4,657
3.5 Specific reserve,488. 4,657,488.24 669,962.82 5,327,451.06
24


5,509
3.5.1 Increase in the period,215. 5,509,215.43 933,563.87 6,442,779.30
43


851,7
3.5.2 Used in the period 27.19
851,727.19 263,601.05 1,115,328.24



3.6 Other 709,315.95 709,315.95


4,657
4. Balance as at the end of the
2,407,945,408.00 526,499,506.76 -13,443,558.44,488. 1,244,180,364.24 1,474,561,975.85 5,644,401,184.65 262,221,679.49 5,906,622,864.14
period 24



2022

Unit: RMB


2022


Equity attributable to owners of the Company as the parent
Item
Non-controlling Total owners’
Other equity Retained interests equity
Share capital Capital reserves Less: Other Spe Surplus reserves Gen O Subtotal
instruments earnings
Treas comprehensive cific eral t


150
Konka Group Co., Ltd. Annual Report 2023
ury income rese reser h
Per stock rve ve e
Prefe
petu O r
rred
al th
share
bon er
s
ds


1. Balance as at the end of the
2,407,945,408.00 234,389,963.10 -20,336,087.87 1,244,180,364.24 5,229,098,788.94 9,095,278,436.41 1,105,670,912.02 10,200,949,348.43
prior year


Add: Adjustment for change
117,317.16 117,317.16 117,317.16
in accounting policy


Adjustment for correction of
previous error


Other adjustments


2. Balance as at the beginning
2,407,945,408.00 234,389,963.10 -20,336,087.87 1,244,180,364.24 5,229,216,106.10 9,095,395,753.57 1,105,670,912.02 10,201,066,665.59
of the year


3. Increase/ decrease in the
130,857,397.95 6,070,906.24 -1,590,864,077.08 -1,453,935,772.89 -284,697,672.09 -1,738,633,444.98
period ( “-” for decrease)


3.1 Total comprehensive
6,070,906.24 -1,470,466,806.68 -1,464,395,900.44 -297,155,286.12 -1,761,551,186.56
income


3.2 Capital increased and
130,857,397.95 130,857,397.95 123,636,214.83 254,493,612.78
reduced by owners


3.2.1 Ordinary shares
87,895,628.12 87,895,628.12
increased by owners


3.2.2 Capital increased by
holders of other equity
instruments


3.2.3 Share-based payments
included in owners’ equity


3.2.4 Other 130,857,397.95 130,857,397.95 35,740,586.71 166,597,984.66



151
Konka Group Co., Ltd. Annual Report 2023

3.3 Profit distribution -120,397,270.40 -120,397,270.40 -110,680,000.00 -231,077,270.40


3.3.1 Appropriation to
surplus reserves


3.3.2 Appropriation to
general reserve


3.3.3 Appropriation to
-120,397,270.40 -120,397,270.40 -110,680,000.00 -231,077,270.40
owners (or shareholders)


3.3.4 Other


3.4 Transfers within owners’
equity


3.4.1 Increase in capital (or
share capital) from capital
reserves


3.4.2 Increase in capital (or
share capital) from surplus
reserves


3.4.3 Loss offset by surplus
reserves


3.4.4 Changes in defined
benefit schemes transferred to
retained earnings


3.4.5 Other comprehensive
income transferred to retained
earnings


3.4.6 Other


3.5 Specific reserve




152
Konka Group Co., Ltd. Annual Report 2023

3.5.1 Increase in the period


3.5.2 Used in the period


3.6 Other -498,600.80 -498,600.80


4. Balance as at the end of the
2,407,945,408.00 365,247,361.05 -14,265,181.63 1,244,180,364.24 3,638,352,029.02 7,641,459,980.68 820,973,239.93 8,462,433,220.61
period



8. Statements of Changes in Owners’ Equity of the Company as the Parent
2023

Unit: RMB


2023


Other equity instruments O
Item t
Less: Other
Specific h
Share capital Capital reserves Treasury comprehensive Surplus reserves Retained earnings Total owners’ equity
Preferr Perpetu reserve e
ed al Other stock income
r
shares bonds


1. Balance as at the end of the prior year 2,407,945,408.00 241,044,390.55 -1,500,000.00 1,260,024,039.76 1,306,066,395.60 5,213,580,233.91


Add: Adjustment for change in accounting
policy


Adjustment for correction of previous
error


Other adjustments -6,088,070.45 -6,088,070.45


2. Balance as at the beginning of the year 2,407,945,408.00 241,044,390.55 -1,500,000.00 1,260,024,039.76 1,299,978,325.15 5,207,492,163.46


100,185,360.20 100,628.36 -749,189,478.71 -648,903,490.15
3. Increase/ decrease in the period ( “-” for


153
Konka Group Co., Ltd. Annual Report 2023
decrease)


3.1 Total comprehensive income 100,628.36 -749,189,478.71 -749,088,850.35


3.2 Capital increased and reduced by
100,185,360.20 100,185,360.20
owners


3.2.1 Ordinary shares increased by owners


3.2.2 Capital increased by holders of other
equity instruments


3.2.3 Share-based payments included in
owners’ equity


3.2.4 Other 100,185,360.20 100,185,360.20


3.3 Profit distribution


3.3.1 Appropriation to surplus reserves


3.3.2 Appropriation to owners (or
shareholders)


3.3.3 Other


3.4 Transfers within owners’ equity


3.4.1 Increase in capital (or share
capital) from capital reserves


3.4.2 Increase in capital (or share
capital) from surplus reserves


3.4.3 Loss offset by surplus reserves


3.4.4 Changes in defined benefit
schemes transferred to retained earnings



154
Konka Group Co., Ltd. Annual Report 2023

3.4.5 Other comprehensive income
transferred to retained earnings


3.4.6 Other


3.5 Specific reserve


3.5.1 Increase in the period


3.5.2 Used in the period


3.6 Other


4. Balance as at the end of the period 2,407,945,408.00 341,229,750.75 -1,399,371.64 1,260,024,039.76 550,788,846.44 4,558,588,673.31



2022

Unit: RMB


2022


Other equity instruments O
Item t
Less: Other
Specific h
Share capital Perpetu Capital reserves Treasury comprehensive Surplus reserves Retained earnings Total owners’ equity
Preferre reserve e
al Other stock income
d shares r
bonds


1. Balance as at the end of the prior year 2,407,945,408.00 110,696,992.60 -1,500,000.00 1,260,024,039.76 2,724,187,542.59 6,501,353,982.95


Add: Adjustment for change in
accounting policy


Adjustment for correction of previous
error


Other adjustments 23.10 23.10




155
Konka Group Co., Ltd. Annual Report 2023

2. Balance as at the beginning of the year 2,407,945,408.00 110,696,992.60 -1,500,000.00 1,260,024,039.76 2,724,187,565.69 6,501,354,006.05


3. Increase/ decrease in the period ( “-” 
130,347,397.95 -1,418,121,170.09 -1,287,773,772.14
for decrease)


3.1 Total comprehensive income -1,297,723,899.69 -1,297,723,899.69


3.2 Capital increased and reduced by
130,347,397.95 130,347,397.95
owners


3.2.1 Ordinary shares increased by
owners


3.2.2 Capital increased by holders of
other equity instruments


3.2.3 Share-based payments included in
owners’ equity


3.2.4 Other 130,347,397.95 130,347,397.95


3.3 Profit distribution -120,397,270.40 -120,397,270.40


3.3.1 Appropriation to surplus reserves


3.3.2 Appropriation to owners (or
-120,397,270.40 -120,397,270.40
shareholders)


3.3.3 Other


3.4 Transfers within owners’ equity


3.4.1 Increase in capital (or share
capital) from capital reserves


3.4.2 Increase in capital (or share
capital) from surplus reserves




156
Konka Group Co., Ltd. Annual Report 2023

3.4.3 Loss offset by surplus reserves


3.4.4 Changes in defined benefit
schemes transferred to retained earnings


3.4.5 Other comprehensive income
transferred to retained earnings


3.4.6 Other


3.5 Specific reserve


3.5.1 Increase in the period


3.5.2 Used in the period


3.6 Other


4. Balance as at the end of the period 2,407,945,408.00 241,044,390.55 -1,500,000.00 1,260,024,039.76 1,306,066,395.60 5,213,580,233.91




157
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)


I. Company Profile

1. Establishment

Konka Group Co., Ltd. (hereinafter referred to as “the Company” and the “Group” when including
subsidiaries), is a joint-stock limited company reorganized from the former Shenzhen Konka
Electronic Co., Ltd. in August 1991 upon approval of the People’s Government of Shenzhen
Municipality, and has its ordinary shares (A-share and B-share) listed on Shenzhen Stock
Exchange with prior consent from the People’s Bank of China Shenzhen Special Economic Zone
Branch. On 29 August 1995, the Company was renamed to “Konka Group Co., Ltd.” (Credibility
code: 914403006188155783) with its main business electronic industry. And now the headquarters
locates in No. 28 of No. 12 of Keji South Rd., Science & Technology Park, Yuehai Street,
Nanshan District, Shenzhen, Guangdong Province.

2. Share capital

After the distribution of bonus shares, allotments, increased share capital and new shares issued
over the years, as of 31 December 2023, the Company has issued a total of 2,407,945,408.00
shares (denomination of RMB1 per share) with a registered capital of RMB2,407,945,408.00.

3. The nature of the company's business and main operating activities

The Group was mainly engaged in consumer electronics and semiconductor businesses,
conducting the production and sales of colour TVs, white goods, optoelectronic display, storage
and printed circuit Boards, etc.

4. The financial statements contained herein have been approved for issue by the Board of
Directors of the Company on 29 March 2024.

II. Consolidation scope
The Company has a total of 116 subsidiaries included in the consolidation scope including
Shenzhen Konka Electronics Technology Co., Ltd., Anhui Konka Electronic Co., Ltd. and
Dongguan Konka Electronic Co., Ltd. The consolidation scope of the Company for the Reporting
Period decreased by 11 households including Sichuan Hongxinchen Real Estate Development Co.,
Ltd., Chongqing Kang xing rui Environmental Technology Co., Ltd., etc. due to losing control or
cancellation compared to the same period of last year.

For details, please refer to Note 8 “Changes in the consolidation scope” and Note 9 "Equity in
Other Entities".

A check list of corporate names and their abbreviations mentioned in this Report

158
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)


No. Corporate name Abbreviation

1 Shenzhen Konka Electronics Technology Co., Ltd. Electronics Technology

2 Anhui Konka Zhilian E-Commerce Co., Ltd. Anhui Zhilian

3 Nantong Haimen Konka Smart Technology Co., Ltd. Haimen Konka

4 Chengdu Konka Smart Technology Co., Ltd. Chengdu Konka Smart

5 Chengdu Konka Electronic Co., Ltd. Chengdu Konka Electronic

6 Nantong Hongdin Smart Technology Co., Ltd. Nantong Hongdin

Shenzhen Kangcheng Technology Innovation and Development
7 Shenzhen Kangcheng
Co., Ltd.

8 Xiaojia Technology Co., Ltd. Xiaojia Technology

9 Liaoyang Kangshun Smart Technology Co., Ltd. Liaoyang Kangshun Smart

10 Liaoyang Kangshun Renewable Resources Co., Ltd. Liaoyang Kangshun Renewable

11 Nanjing Konka Electronics Co., Ltd. Nanjing Konka

Chuzhou Konka Precision Intelligent Manufacturing Technology
12 Chuzhou Konka
Co., Ltd.

13 GuangDong XingDa HongYe Electronic Co., Ltd. XingDa HongYe

14 Shenzhen Konka Circuit Co., Ltd. Konka Circuit

15 Suining Konka Flexible Electronic Technology Co., Ltd. Konka Flexible Electronic

16 Suining Konka Hongye Electronics Co., Ltd. Konka Hongye Electronics

17 Boluo Konka Precision Technology Co., Ltd. Boluo Precision

18 Boluo Konka PCB Co., Ltd. Boluo Konka

19 Anhui Konka Tong giường Electrical Appliances Co., Ltd. Anhui Tong giường 

20 Jiangsu Konka Smart Electrical Appliances Co., Ltd. Jiangsu Konka Smart

21 Anhui Konka Electrical Appliance Technology Co., Ltd. Anhui Electrical Appliance

22 Henan Frestec Refrigeration Appliance Co., Ltd. Frestec Refrigeration

23 Henan Frestec Electrical Appliances Co., Ltd. Frestec Electrical Appliances

24 Henan Frestec Household Appliances Co., Ltd. Frestec Household Appliances


159
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)


No. Corporate name Abbreviation

25 Henan Frestec Smart Home Technology Co., Ltd. Frestec Smart Home

26 Shenzhen Konka Investment Holdings Co., Ltd. Konka Investment

27 Yibin Konka Technology Park Operation Co., Ltd. Yibin Konka Technology Park

28 Shenzhen Konka Capital Equity Investment Management Co., Ltd. Konka Capital

29 Konka Suiyong Investment (Shenzhen) Co., Ltd. Konka Suiyong

30 Shenzhen Konka Sheng xing Industrial Co., Ltd. Sheng xing Industrial

31 Shenzhen Konka Zhitong Technology Co., Ltd. Zhitong Technology

32 Konka Electronic Material Technology (Shenzhen) Co., Ltd. Konka Electronic Material

33 Beijing Konka Electronic Co., Ltd. Beijing Konka Electronic

34 Tianjin Konka Technology Co., Ltd. Tianjin Konka

35 Suining Konka Industrial Park Development Co., Ltd. Suining Konka Industrial Park

Suining Electronic Technological
36 Suining Konka Electronic Technological Innovation Co., Ltd.
Innovation

37 Shanghai Konka Industrial Co., Ltd. Shanghai Konka

38 Yantai Kangjin Technology Development Co., Ltd. Yantai Kangjin

39 Shenzhen Konka Mobile Interconnection Technology Co., Ltd. Mobile Interconnection

40 Sichuan Konka Smart Terminal Technology Co., Ltd Sichuan Konka

41 Yibin Konka Smart Technology Co., Ltd. Yibin Smart

42 Shenzhen KONSEMI Co., Ltd. Shenzhen KONSEMI

43 Chongqing Konka Technology Development Co., Ltd. Chongqing Konka

44 Kowin Memory Technology (Shenzhen) Co., Limited Kowin Memory (Shenzhen)

45 Kowin Memory Technology (Hong Kong) Co., Limited Kowin Memory (Hong Kong)

46 Konka Xinyun Semiconductor Technology (Yancheng) Co., Ltd. Konka Xinyun Semiconductor

47 Konka Cross-border (Hebei) Technology Development Co., Ltd. Konka Cross-border (Hebei)

48 Shenzhen Nianhua Enterprise Management Co., Ltd. Shenzhen Nianhua



160
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)


No. Corporate name Abbreviation

49 Konka Huazhong (Hunan) Technology Co., Ltd. Konka Huazhong

50 Shenzhen Wankaida Science and Technology Co., Ltd. Wankaida

Shenzhen Chuangzhi Electrical
51 Shenzhen Konka Chuangzhi Electrical Appliances Co., Ltd.
Appliances

52 Suining Jiarun Property Co., Ltd. Suining Jiarun Property

53 Anhui Konka Electronic Co., Ltd. Anhui Konka

54 Anhui Kangzhi Trade Co., Ltd. Kangzhi Trade

55 Shenzhen Konka Telecommunications Technology Co., Ltd. Telecommunication Technology

56 Konka Mobility Co., Limited Konka Mobility

57 Dongguan Konka Electronic Co., Ltd. Dongguan Konka

58 Suining Konka Smart Technology Co., Ltd. Suining Konka Smart

Chongqing Optoelectronic
59 Chongqing Konka Optoelectronic Technology Co., Ltd.
Technology

60 Yibin Kangrun Environmental Technology Co., Ltd. Yibin Kangrun

61 Yibin Kangrun Medical Waste Centralized Treatment Co., Ltd. Yibin Kangrun Medical

Yibin Kangrun Environmental Protection Power Generation Co., Yibin Kangrun Environmental
62
Ltd. Protection

63 Ningbo Khr Electric Appliance Co., Ltd. Ningbo Khr Electric Appliance

64 Jiangxi Konka New Material Technology Co., Ltd. Jiangxi Konka

Jiangxi High Transparent
65 Jiangxi High Transparent Substrate Material Technology Co., Ltd.
Substrate

66 Jiangsu Konka Special Material Technology Co., Ltd. Jiangsu Konka Special Material

67 Jiangxi Xinfeng Microcrystalline Jade Co., Ltd. Xinfeng Microcrystalline

68 Konka Huanjia Environmental Technology Co., Ltd. Konka Huanjia

69 Konka Huanjia (Henan) Environmental Technology Co., Ltd. Konka Huanjia (Henan)

70 Shanxi Konka Intelligent Appliance Co., Ltd. Shanxi Konka Intelligent

71 Shenzhen Konka Pengrun Technology & Industry Co., Ltd. Pengrun Technology



161
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)


No. Corporate name Abbreviation

72 Jiaxin Technology Co., Ltd. Jiaxin Technology

73 Konka Ronghe Industrial Technology (Zhe gian g) Co., Ltd. Konka Ronghe

74 Chongqing Kang xing rui Environmental Technology Co., Ltd. Chongqing Kang xing rui

75 Shenzhen Konka Unifortune Technology Co., Ltd. Konka Unifortune

76 Jiali International (Hong Kong) Limited Jiali International

77 Sichuan Kangjiatong Technology Co., Ltd. Kangjiatong

Kanghong (Yantai)
78 Kanghong (Yantai) Environmental Technology Co., Ltd.
Environmental

Jiangkang (Shanghai)
79 Jiangkang (Shanghai) Technology Co., Ltd.
Technology

80 Shenzhen Konka Intelligent Manufacturing Technology Co., Ltd. Konka Intelligent Manufacturing

81 Hainan Konka Technology Co., Ltd. Hainan Konka Technology

82 Konka Ventures Development (Shenzhen) Co., Ltd. Konka Ventures

83 Yibin Konka Incubator Management Co., Ltd. Yibin Konka Incubator

84 Yantai Konka Healthcare Enterprise Service Co., Ltd. Yantai Konka

Chengdu Anren Konka Cultural and Creative Incubator
85 Chengdu Anren
Management Co., Ltd.

86 Guiyang Konka Enterprise Service Co., Ltd. Konka Enterprise Service

87 Shenzhen Konka Eco-Development Investment Co., Ltd. Konka Eco-Development

88 Konka (Europe) Co., Ltd. Konka Europe

89 Hong Kong Konka Limited Hong Kong Konka

90 Hongdin International Trading Limited Hongdin Trading

91 Konka North America LLC Konka North America

92 Kanghao Technology Co., Ltd. Kanghao Technology

93 Hongdin Invest Development Limited Hongdin Invest

Chain Kingdom Memory
94 Chain Kingdom Memory Technologies Co., Limited
Technologies



162
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)


No. Corporate name Abbreviation

Chain Kingdom Semiconductor
95 Chain Kingdom Semiconductor (Shao xing ) Co., Ltd.
(Shao xing )

96 Hongjet (Hong Kong) Company Limited Hongjet

Chongqing Xinyuan
97 Chongqing Xinyuan Semiconductor Co., Ltd.
Semiconductor

98 Anlu Konka Industry Operation Service Co. Ltd. Anlu Konka

Shenzhen Kanghong Dongsheng Investment Partnership (Limited
99 Kanghong Dongsheng
Partnership)

Guizhou Konka New Material
100 Guizhou Konka New Material Technology Co., Ltd.
Technology

101 Guizhou Kanggui Energy Co., Ltd. Guizhou Kanggui Energy

102 Guangdong Xinwei Semiconductor Co., Ltd. Guangdong Xinwei

Guizhou Kanggui Material
103 Guizhou Kanggui Material Technology Co., Ltd.
Technology

104 Nantong Kanghai Technology Industry Development Co., Ltd. Nantong Kanghai

105 Chongqing Kangyiyun Business Operation Management Co., Ltd. Chongqing Kangyiyun

Jiangxi Konka High-tech Park Operation and Management Co.,
106 Jiangxi Konka High-tech Park
Ltd.

Shangrao Konka Electronic
107 Shangrao Konka Electronic Technology Innovation Co., Ltd.
Technology Innovation

108 Guizhou Konka New Energy Material Technology Co., Ltd. Guizhou Konka New Energy

109 Zhe gian g Konka Electronics Co., Ltd. Zhe gian g Konka Electronic

Zhe gian g Konka Technology
110 Zhe gian g Konka Technology Industry Development Co., Ltd.
Industry

111 Sichuan Hongxinchen Real Estate Development Co., Ltd. Sichuan Hongxinchen

112 Xi'an Konka Intelligent Appliance Co., Ltd. Xi'an Konka Intelligent

113 Xi'an Konka Network Technology Co., Ltd. Xi'an Konka Network

Xi'an Kanghong Technology
114 Xi'an Kanghong Technology Industry Development Co., Ltd.
Industry

Xi'an Konka Intelligent
115 Xi'an Konka Intelligent Technology Development Co., Ltd.
Technology


163
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)


No. Corporate name Abbreviation

116 Anhui Konka Low Carbon Technology Co., Ltd. Anhui Konka Low Carbon

Shenzhen Kanghong Xintong Investment Partnership (Limited
117 Kanghong Xintong
Partnership)

118 Songyang Konka Smart Industry Operation Management Co., Ltd. Songyang Industry Operation

119 Shenzhen Kangyan Technology Co., Ltd. Kangyan Technology

120 Konka Photovoltaic Technology Co., Ltd. Konka Photovoltaic Technology

121 Songyang Konka Intelligent Technology Development Co., Ltd. Songyang Konka Intelligent

122 Konka North China (Tianjin) Technology Co., Ltd. Konka North China

123 Zhongshan Kanghong Electronic Technology Co., Ltd. Zhongshan Kanghong

124 Shenzhen Konka Digital Technology Development Co., Ltd. Digital Technology

Chongqing Kang xing rui
125 Chongqing Kang xing rui Scraped Automobile Recycling Co., Ltd.
Automobile Recycling

Kang xing rui Renewable
126 Chongqing Kang xing rui Renewable Resources Co., Ltd.
Resources

127 Chongqing Fangbing Real Estate Co., Ltd. Chongqing Fangbing Real Estate


III. Basis for the Preparation of Financial Statements
1. Basic for the preparation

The Group's financial statements were prepared in accordance with the Accounting Standards for
Business Enterprises promulgated by the Ministry of Finance as well as guidelines on accounting
standards for business enterprises, announcements on interpreting the accounting standards for
business enterprises and other related regulations (hereinafter collectively referred to as the
"Accounting Standards for Business Enterprises" ), as well as the disclosure regulations of the General
Provisions on Financial Reporting No. 15 for Companies Publicly Issuing Securities (revised in 2023)
by the China Securities Regulatory Commission (hereinafter referred to as the "CSRC" ).

2. Going-concern

The Group has evaluated its ability to continue as a going concern for 12 months since the end of
the Reporting Period, and has not found any matters or situations that raise significant doubts
about its ability to continue as a going concern. Therefore, the financial statements are presented
on a going concern basis.

164
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

IV. Important Accounting Policies and Estimations
Specific accounting policies and accounting estimates: The specific accounting policies and
accounting estimates formulated by the Group according to the actual production and operation
characteristics include provisions for bad debts of accounts receivable, provisions for inventory
depreciation, depreciation of fixed assets, revenue recognition and measurement, etc.

1. Statement of Compliance with the Accounting Standards for Business Enterprises

The financial statements prepared by the Group are in compliance with in compliance with the
Accounting Standards for Business Enterprises, which factually, accurately and completely
present the Group’s financial positions on 31 December 2023, business results and cash flows, and
other relevant information for 2023.

2. Fiscal Period

The Group’s fiscal year starts on January 1 and ends on December 31 of every year according to
the Gregorian calendar.

3. Operating Cycle

The normal operating cycle refers to the period from the purchase of assets for processing to the
realization of cash or cash equivalents by the Group. An operating cycle for the Group is 12
months, which is also the classification criterion for the liquidity of its assets and liabilities.

4. Recording Currency

The Group adopted RMB as the bookkeeping base currency.

5. Methodology for Determining Materiality Criteria and Basis for Selection

The Group prepares and discloses financial statements adhering to the principle of materiality. The
disclosures in the notes to the financial statements cover matters involving judgments about
materiality criteria, the methods for determining materiality thresholds, and the bases for selecting
these criteria:

Location of
Disclosures involving disclosure of this
Methodology for determining materiality criteria
materiality standard matter in the notes to
and basis for selection
judgments the present financial
statements


Significant individually bad Note VI-4. Accounts Individual amount exceeding RMB50,000,000



165
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)


Location of
Disclosures involving disclosure of this
Methodology for determining materiality criteria
materiality standard matter in the notes to
and basis for selection
judgments the present financial
statements

debt provisioned receivables receivable (2)


Receivables with significant
amount of bad debt provision Note VI-4. Accounts
Individual amount exceeding RMB10 million
recovered or reversed during receivable (3)
the period


Significant write-offs of
Note VI-4. Accounts
receivables during the period Individual amount exceeding RMB10 million
receivable (4)
Write-offs


Significant accounts payable Note VI-28. Accounts
Individual amount exceeding RMB10 million
aged over 1 year payable


Significant receipts in advance Note VI-29;
and contractual Note VI-30;
liabilities/projected Individual amount exceeding RMB10 million
Note VI-33;
liabilities/other payables aged
Note VI-41
over 1 year


Note VI-18.
Significant construction in Increase or decrease in a single asset during the year
Construction in
progress project or a balance exceeding RMB0.1 billion
progress (2)


6. Accounting Treatment Methods for Business Combinations under the Same Control or
not under the Same Control

(1) Business Combinations under the Same Control

A business combination involving entities under common control is a business combination in
which all of the combining enterprises are ultimately controlled by the same party or parties both
before and after the combination, and that control is not transitory.

As the combining party, the assets and liabilities obtained by the Group in a business combination

166
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

under the same control shall be measured on the basis of their carrying value in the final
controlling party on the combining date. As for the balance between the carrying value of the net
assets obtained and the carrying value of the consideration paid by it (or aggregate nominal
amount of shares issued), the capital reserve shall be adjusted. If the capital reserve is not
sufficient to be offset, the retained earnings shall be adjusted.

(2) Business Combinations not under the Same Control

A business combination involving entities not under common control is a business combination in
which all of the combining enterprises are not ultimately controlled by the same party or parties
both before and after the combination.

As purchaser, the identifiable assets, liabilities and contingent liabilities of the acquiree acquired
in the business combination under different control shall be measured at fair value on the
acquisition date. The balance that the combined cost greater than the fair value share of the
identifiable net assets of the purchased party obtained in the combination shall be recognized as
goodwill; When the merger cost is less than the fair value share of the identifiable net assets of the
acquiree acquired in the merger, the fair value of all identifiable assets, liabilities and contingent
liabilities acquired in the merger, and merger costs shall be reviewed first. After review, if the
merger cost is still less than the fair value share of the identifiable net assets of the acquiree
acquired in the merger, the difference shall be included in the non-operating income of the merger
period.

7. Criteria for Judging Control and Methods for Preparing Consolidated Financial
Statements

The scope of consolidation for the consolidated financial statements of the Group is based on
control, including the Company and all its subsidiaries (including enterprises, divisible parts of
investees, and structured entities controlled by the Company). The Group assesses control based
on whether it has power over the investee, has exposure or rights to variable returns from its
involvement with the investee, and has the ability to use its power over the investee to affect the
amount of the investor's returns.

The financial statements of subsidiaries are adjusted in accordance with the accounting policies
and accounting period of the Group during the preparation of the consolidated financial statements,
where the accounting policies and the accounting periods are inconsistent between the Group and
subsidiaries.

The impact of internal transactions between the Company and its subsidiaries, as well as between
subsidiaries and each other, was offset in consolidation. The shares of the subsidiary's owner's
equity that do not belong to the parent Group and the shares of minority shareholders' equity in
167
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

current net profit and loss, other comprehensive income and total comprehensive income shall be
respectively listed in the consolidated financial statement "Minority shareholders' equity, minority
shareholders' profit and loss, other comprehensive income that belongs to minority shareholders
and total comprehensive income that belongs to minority shareholders".

For subsidiaries acquired through merger of enterprises under the same control, their operating
results and cash flows are included in the consolidated financial statements from the beginning of
the current merger period. When preparing the comparative consolidated financial statements, the
relevant items in the financial statements of the previous year shall be adjusted as if the
consolidated reporting entity had existed since the final controlling party began to control it.

The treatment method of supplementary disclosure in consolidated financial statement for the
Reporting Period when the controlling right is acquired, if the equity of the invested organization
under the same control is successively obtained through several transactions and eventually the
enterprise merger is conducted. For example: At the occasion of the equity of the investee under
the same control is acquired step by step through multiple transactions, and finally form the
business combination, when preparing the consolidated statement, it shall be deemed as the
adjustment is made in the current state when the final controlling party starts to control. And when
compiling the comparative report, the assets and liabilities of the merged party shall be merged
into the comparative statement of the consolidated financial statements of the consolidated Group
without any earlier than the time when the Group and the merged party are under the control of the
ultimate controlling party, and the combined net increased assets shall be adjusted to the relevant
items under owners' equity in the comparative statements. In order to avoid the re-calculation of
the net assets value of the merged party, the long-term equity investment held by the Group before
the merger, the confirmed relevant profit and loss on the same party with the Group and the
merged party on the date of acquisition of the original equity from the final control date to the
merger date, and changes of other comprehensive income and other net assets shall offset the
beginning retained earnings and current profits and losses of the comparative statement period
respectively.

For subsidiaries acquired through business combination under the different control, the operating
results and cash flow shall be included in the consolidated financial statements from the date when
the Group obtains the control right. When preparing the consolidated financial statements, the
financial statements of the subsidiaries shall be adjusted on the basis of the fair value of the
identifiable assets, liabilities and contingent liabilities determined on the acquisition date.

The treatment method of supplementary disclosure in consolidated financial statement for the
Reporting Period when the controlling right is acquired, if the equity of the invested organization
not under the same control is successively obtained through several transactions and eventually the
168
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

enterprise merger is conducted. For example: At the occasion of the equity of the investee under
different control is acquired step by step through multiple transactions and eventually form the
business combination, when preparing the consolidated statement, the equity of the investee held
before the purchase date is re-measured according to the fair value of the equity on the purchase
date, and the difference between the fair value and its book value is included in the current
investment income. The equity of the acquiree held before the relevant purchase date involves
other comprehensive income under the equity method and other changes in owner's equity other
than net profit and loss, other comprehensive income and profit distribution, which are converted
into investment profit and loss in the current period of the purchase date, except for other
comprehensive income arising from the remeasurement of defined benefit plans's net liabilities or
changes in net assets by the investee.

The Group partially disposes of long-term equity investments in subsidiaries without losing
control, when preparing the consolidated financial statements, the difference between the disposal
price and the share of net assets that the subsidiaries have continuously calculated since the date of
purchase or the date of consolidation is corresponding to the disposal of long-term equity
investments. The capital premium or equity premium is adjusted. If the capital reserve is
insufficient to offset, the retained earnings are adjusted.

If the Group loses control over the investee due to the disposal of some equity investments and
other reasons, the remaining equity shall be re-measured at its fair value on the date of loss of
control when preparing the consolidated financial statements. The difference between the sum of
the consideration obtained from the disposal of equity and the fair value of the remaining equity,
minus the share of the net assets of the original subsidiary calculated on the basis of the original
shareholding ratio and continuously calculated from the date of purchase or merger, is included in
the investment profit and loss of the current period when the control right is lost, and goodwill is
offset. Other comprehensive income related to the original subsidiary's equity investment, etc.,
will be transferred to the current investment profit and loss when the control right is lost.

If the Group disposes of the equity investment in a subsidiary Group step by step through multiple
transactions until the loss of control right, if the transactions of the disposal of the equity
investment in a subsidiary Group until the loss of control right belong to a package transaction, the
transactions shall be treated as transactions of the disposal of the subsidiary Group and the loss of
control right for accounting. However, the difference between the disposal price and the share of
the subsidiary's net assets corresponding to the disposal investment before the loss of control right
is recognized as other comprehensive income in the consolidated financial statements, and is
transferred to the investment profit and loss of the current period when the control right is lost.

8. Classification of Joint arrangements and Accounting Treatment of Joint Operations
169
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

The Group classifies joint arrangements into joint operations and joint ventures. For a joint
operation, the Group, as a joint operator, recognizes the assets and liabilities that it holds and bears
in the joint operation, and recognizes the jointly-held assets and jointly-borne liabilities according
to the Group’s stake in the joint operation; recognizes relevant income and expense according to
the Group’s stake in the joint operation. When the Group purchases or sells the assets not
constituting business with the joint operation, the Group only recognized the share of the other
joint operators in the gains and losses arising from the transaction.

9. Cash and Cash Equivalents

In the Group’s understanding, the cash in the cash flow statement includes cash on hand and
deposits that can be used for cover, the cash equivalents in the cash flow statement include high
circulating investments held within three months which are easily convertible into known amount
of cash and whose risks in change of value are minimal.

10. Foreign Currency Businesses and Translation of Foreign Currency Financial Statements

(1) Foreign currency transaction

Foreign currency transactions of the Group are initially recognized at the exchange rate at the
beginning of the month of the transaction date (usually referring to the middle rate of the foreign
exchange rate announced by the People's Bank of China on the day, the same below), converting
the foreign currency amount into the functional currency amount. On the balance sheet date, the
monetary items in foreign currency were converted into RMB at the spot exchange rate on balance
sheet date. Except the exchange difference arising from special foreign-currency borrowing for the
purpose of construction or production of assets meeting capitalization conditions treated in the
principle of capitalization, the conversion difference was directly included in the current profits
and losses.

(2) Translation of foreign currency financial statement

The asset and liability items in foreign currency balance sheet were converted at the spot exchange
rate on balance sheet date; except for “undistributed profit”, owner’s equity items were converted
at the sport exchange rate at the time of business occurrence; income and expenditure items in
income statement were converted at the average exchange rate for the period (monthly average
exchange rate) of the transaction occurrence date. The conversion difference of foreign currency
statements arising from the aforementioned conversion was presented in other comprehensive
income item. The foreign currency cash flow was converted at the average exchange rate for the
period (monthly average exchange rate) of the cash flow occurrence date. The amount of exchange
rate change influence on cash was independently presented in cash flow statement.


170
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

11. Financial Instruments

(1) Recognition and derecognition of financial instruments

The Group recognizes a financial asset or liability when it becomes a party of the relevant
financial instrument contract.

The Company's financial assets (or a portion of a financial asset, or a part of a group of similar
financial assets) shall be derecognized when meeting any of the following conditions, meaning
they are removed from the accounts and the balance sheet:1) The right to receive cash flows from
the financial asset expires; 2) The financial asset is transferred, and the Group has transferred
substantially all risks and rewards of ownership of the financial asset; 3) The financial asset is
transferred, and the Group has neither transferred nor retained substantially all risks and rewards
of ownership, and has not retained control over the financial asset.

In case of current obligation of financial liabilities (or partial financial liabilities) being terminated,
derecognition of such financial liabilities (or partial financial liabilities) is conducted by the Group.
If the Group (borrower) concludes an agreement with the lender to replace existing financial
liabilities with new ones and contact terms of new financial liabilities are different from those of
existing financial liabilities, derecognition of existing financial liabilities and recognition of new
financial liabilities shall be conducted. In case of material alteration of contract terms of existing
financial liabilities (partial financial liabilities) by the Group, derecognition of existing financial
liabilities and recognition of new financial liabilities as per modified terms shall be conducted. In
case of derecognition of financial liabilities (partial financial liabilities), the Group includes the
balance between its carrying value and payment consideration into the current profit or loss.

All regular acquisitions or sales of financial assets are recognized and derecognized on a
transaction date basis.

(2) Classification and measurement of financial assets

The Group classifies the financial assets into financial assets measured at amortized cost, financial
assets measured by the fair value and the changes recorded in other comprehensive income and
financial assets at fair value through profit or loss based on the business model for financial assets
management and characteristics of contractual cash flow of financial assets.

The Group classified the financial assets meeting the following conditions at the same time as
financial assets at amortized cost: ① The business mode of the Group to manage the financial
assets targets at collecting the contractual cash flow. ② The contract of the financial assets
stipulates that the cash flow generated in the specific date is the payment of the interest based on
the principal and outstanding principal amount. These financial assets initially measured at fair

171
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

value and relevant transaction cost shall be included into the initial recognized amount and
subsequently measured at amortized cost. Except for those designated to be hedge items, the
difference between the initial recognized amount and the amount due shall be amortized at actual
interest rate and their amortization, impairment and exchange gain and loss as well as gains or
losses arising from derecognition shall be recorded into the current profit or loss.

The Group classified the financial assets meeting the following conditions at the same time as
financial assets at fair value through other comprehensive income: ① The Business mode for
managing financial assets of the Group takes contract cash flow collected as target and selling as
target. ②The contract of the financial assets stipulates that the cash flow generated in the specific
date is the payment of the interest based on the principal and outstanding principal amount. These
financial assets initially measured at fair value and relevant transaction cost shall be included into
the initial recognized amount. Except for those designated as hedged items, as for these financial
assets, except for gains or losses on credit impairment, exchange gain and loss and interest of
financial assets measured at actual interest rate, other gains or losses generated shall be recorded
into other comprehensive income. When derecognized, the accumulated gains and losses
originally recorded into other comprehensive income shall be transferred out into the current profit
or loss.

The Group recognizes interest income according to the effective interest rate method. Interest
income is calculated and determined according to the book balance of the financial asset
multiplied by the actual interest rate, except for the following circumstances: ① For the financial
asset with credit impairment that has been purchased or originated, from the initial recognition, the
interest income is calculated and determined according to the amortized cost of the financial asset
and the actual interest rate adjusted by credit. ② For financial assets purchased or originated that
have not suffered credit impairment but have suffered credit impairment in subsequent periods, the
interest income shall be calculated and determined according to the amortized cost and actual
interest rate of the financial assets in subsequent periods.

The Group designates non-transactional investment in equity instruments as financial assets at fair
value through other comprehensive income. Those designated non-transactional investment in
equity instruments by the Group is initially measured at fair value and relevant transaction cost
shall be recorded into the initial recognized amount. Except for dividends (excluding those
belonging to recovery of investment cost) which shall be recorded into the current profit or loss,
other relevant gains and losses (including exchange gains and losses) shall be recorded into other
comprehensive income and cannot be transferred into the current profit or loss subsequently.
When derecognized, the accumulated gains or losses originally recorded into other comprehensive
income shall be transferred out into retained earnings. Equity instrument investments measured at
172
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

fair value through other comprehensive income included: Equity investments to be held in the
long term as planned by the Group for strategic purpose, with no control, joint control or
significance influence, and with no active market quotation.

The Group classifies financial assets not belonging to above two as financial assets at fair value
through profit or loss which shall be initially measured at fair value and relevant transaction cost
shall be directly recorded into the current profit or loss. Gains or losses arising from these
financial assets shall be recorded into the current profit or loss.

The contingent consideration recognized by the Group in the business combination not under the
same control which constitutes a financial asset shall be classified as the financial asset at fair
value through profit or loss.

(3) Classification, recognition and measurement of financial liabilities

The Group’s financial liabilities are, on initial recognition, classified into financial liabilities at fair
value through profit or loss and other financial liabilities.

Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities
and financial liabilities designated at the initial recognition to be measured by the fair value and
their changes are recorded in the current profit or loss. The subsequent measurement shall be at
fair value and gains or losses arising from changes in fair value and the dividends and interest
expense related to the financial liability shall be the current profit or loss.

Other financial liabilities shall be subsequently measured at amortized cost with actual interest rate.
The Group classifies financial liabilities except for the following items as financial liabilities at
amortized cost: ①Financial liabilities at fair value through profit or loss including held-for-trading
financial liabilities (including the derivative instruments belonging to financial liabilities) and
designated financial liabilities at fair value through profit or loss. ② Financial liabilities arising
from the transfer of financial assets not meeting the derecognition conditions or continuous
involvement in the transferred financial assets. ③ Financial guarantee contract not belonging to
cases of above ① or ② and loan commitments at interest rate lower than the market rate not
belonging to the case in ①.

The Group treats the financial liability arising from contingent consideration recognized as the
purchase party in the business combination not under the same control at fair value and changes
thereof shall be recorded into the current profit or loss.

(4) Impairment of Financial Instrument

The Group needs to confirm that the financial assets subject to the impairment loss are the
financial assets measured based on the amortized cost, the debt instrument investment measured
173
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

based on the fair value with its variations included into other comprehensive incomes and the lease
outlay receivable, mainly including notes receivable, account receivable, other receivables,
investment on creditor’s rights, other investments on creditor’s rights and long-term receivables
etc. Besides, in respect of the contract assets and partial financial guarantee contract,
corresponding impairment provisions shall be calculated and withdrawn and corresponding credit
impairment losses recognized according to various accounting policies mentioned in this part.

1) Methods for the Recognition of Impairment Provisions

For all mentioned items above, the Group shall calculate and withdraw corresponding impairment
provisions and recognize corresponding credit impairment losses according to applicable expected
credit loss measurement methods (general methods or simplified methods) with the expected
credit loss as the basis.

Credit loss refers to the difference between all receivable contract cash flows and all expected cash
flows that are discounted to the present value based on the original actual interest rate -- the
present value of all cash shortfall. However, for the purchased or original financial assets subject
to the credit impairment, the Group shall realize the discounting based on the actual interest rate
subject to the credit adjustment.

General methods applied to measure the expected credit loss can be described as: the Group shall
evaluate whether the credit risk of the financial assets (including the contract assets and other
applicable items; the same below) increases remarkably after the initial recognition on the balance
sheet day; if the credit risk increases remarkably after the initial recognition, the Group shall
measure the provision for loss based on the specific expected credit loss amount during the entire
period of existence; if not, the Group shall measure the provision for loss based on the specific
expected credit loss amount in the following 12 months. While evaluating the expected credit loss,
the Group shall take all reasonable and well-founded information into consideration, including the
forward-looking information.

For the financial instrument of lower credit risk on the balance sheet day, the Group shall assume
that its credit risk does not increase remarkably after the initial recognition, and corresponding
provision for loss shall be measured according to the expected credit loss in the following 12
months.

2) Standards for Judging Whether the Credit Risk Increases Remarkably after the Initial
Recognition

If any financial assets’ probability of default within the expected period of existence determined
on the balance sheet day is obviously higher than that within the expected period of existence
determined during the initial recognition, it shall indicate the remarkable increase of the financial
174
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

assets’ credit risk. Unless it is under special circumstances, the Group shall adopt various
variations in the default risk in the following 12 months as the reasonable basis for estimating
corresponding variations in the default risk within the entire period of existence and determining
whether the credit risk increases remarkably after the initial recognition.

3) Combined Method for Evaluating the Expected Credit Risk based on Corresponding
Combination

For the financial assets with remarkably different credit risk, the Group shall separately evaluate
its credit risk, including the receivables from related parties, receivables involved in any dispute
with the other party or any lawsuit and arbitration, and receivables with obvious evidence showing
that the debtor cannot fulfill the due payment obligation etc.

Except for the financial assets whose credit risk shall be separately evaluated, the Group shall
divide these financial assets into different combinations based on the specific risk features, on
which basis, corresponding credit risks can be evaluated.

4) Accounting Treatment Methods Applied to the Impairment of Financial Assets

At the end of the period, the Group shall calculate the expected credit losses of various financial
assets. If the expected credit loss is higher than the carrying amount of its current impairment
provision, the difference shall be recognized as the impairment loss; if lower, the difference shall
be recognized as the gain from the impairment.

(5) Recognition and measurement of financial assets transfer

The Group derecognizes a financial asset when one of the following conditions is met: ① the
rights to receive cash flows from the asset have expired; ② the enterprise has transferred its rights
to receive cash flows from the asset to a third party under a pass-through arrangement; or ③ the
enterprise has transferred its rights to receive cash flows from the asset and either (a) has
transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor
retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

If the overall transfer of financial assets fulfills the requirements for derecognition, the difference
between the book value of the transferred financial assets and the sum of the consideration
received due to the transfer and the corresponding derecognition part of the accumulated amount
of fair value changes originally directly included in other comprehensive income (the contract
terms involving the transferred financial assets stipulate that the cash flow generated on a specific
date is only the payment of the principal and interest based on the unpaid principal amount) shall
be included in the current profits and losses.

If the partial transfer of financial assets satisfies the conditions for termination confirmation, the
175
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

entire book value of the transferred financial assets will be apportioned between the termination
confirmation portion and the non-termination confirmation portion according to their relative fair
values, and the consideration received for the transfer And the amount corresponding to the
termination of the recognition of the cumulative amount of changes in fair value originally
included in other comprehensive income that should be apportioned to the derecognition part And
the payment of interest based on the outstanding principal amount), and the difference between the
total book value of the aforesaid financial assets allocated is included in the current profit and loss.

(6) The distinction between financial liabilities and equity instruments and related treatment
methods

The Group distinguishes the financial liabilities and equity instruments according to the following
principles: (1) If the Group cannot unconditionally avoid performing a contractual obligation by
delivering cash or other financial assets, the contractual obligation meets the definition of financial
liabilities. Although some financial instruments do not explicitly include the terms and conditions
of the obligation to deliver cash or other financial assets, they may indirectly form contractual
obligations through other terms and conditions. (2) If a financial instrument must be settled with
or can be settled with the Group's own equity instrument, it is necessary to consider whether the
Group's own equity instrument used to settle the instrument is used as a substitute for cash or other
financial assets, or to enable the holder of the instrument to enjoy the residual equity in the assets
of the issuer after deducting all liabilities. If it belongs to the former condition, the instrument is
the financial liability of the issuer; if it belongs to the latter condition, the instrument is the equity
instrument of the issuer. In some cases, a financial instrument contract requires the Group to use or
use its own equity instrument to settle the financial instrument, in which the amount of contractual
rights or contractual obligations is equal to the number of its own equity instruments available or
to be delivered multiplied by its fair value at the time of settlement, regardless of whether the
amount of contractual rights or obligations is fixed, whether it is entirely or partially based on
changes in variables other than the market price of the Group's own equity instruments, the
contract shall be classified as a financial liability.

In classifying financial instruments (or their components) in the consolidated statement, the Group
has taken into account all terms and conditions reached between the Group members and the
holders of financial instruments. If the Group as a whole undertakes the obligation to deliver cash,
other financial assets or settle accounts in other ways that cause the instrument to become a
financial liability due to the instrument, the instrument shall be classified as a financial liability.

If financial instruments or their components are financial liabilities, the Group will include interest,
dividends (or dividends), gains or losses, and gains or losses arising from redemption or
refinancing, etc. in the current profits and losses.
176
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

If financial instruments or their components are equity instruments, when they are issued
(including refinancing), repurchased, sold or cancelled, the Group will treat them as changes in
equity and will not recognize changes in the fair value of equity instruments.

(7) Offsetting financial assets and financial liabilities

The Group’s financial assets and liabilities shall be separately presented in the balance sheet and
not set off each other. But when meeting the following conditions at the same time, the net amount
after offset shall be presented in the balance sheet: (1) The Group has the statutory right to set off
recognized amount which is currently executable; (2) The Group plans to settle with the net
amount or realize the financial asset and pay off the financial liability simultaneously.

12. Notes Receivable

For notes receivable, the Group shall measure the provision for loss based on the specific expected
credit loss during the entire period of existence. According to the credit risk characteristics thereof,
except those with separate evaluation of credit risk, notes receivable can be divided into different
combinations:


Item Basis

Bank Acceptance The Accepter shall be the bank with high credit level and low risks

Trade Acceptance Classified by credit risk of acceptors (the same as accounts receivable)

13. Accounts Receivable

For account receivable and contract assets excluding significant financing composition, the Group
shall measure the provision for loss according to the specific expected credit loss amount within
the entire period of existence.

For account receivable, contract assets and lease payment receivable including significant
financing composition, the Group shall always measure the provision for loss according to the
specific expected credit loss amount within the period of existence.

Except the account receivable and contract assets whose credit risks shall be separately evaluated,
the Group shall divide them into different combinations based on the specific credit risks:


Item Basis

This portfolio is accounts receivable with aging as the credit risk
Aging Combination
feature.

177
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)


Item Basis

Related party The accounts receivable from the other entities within the consolidation
combination scope

14. Accounts Receivable Financing

The Group’s accounts receivable financing is based on expected credit losses, and provision is
made for depreciation reserves in accordance with the expected credit loss measurement method
for notes receivable.

15. Other Receivables

The Group measures the loss reserves on other receivables in accordance with the following
circumstances: a) For financial assets whose credit risk has not significantly increased since the
initial recognition, the Group measures the loss reserves at the amount of expected credit losses
for the next 12 months; b) For financial assets whose credit risk has increased significantly since
the initial recognition, the Group measures the loss reserves at an amount equal to the expected
credit losses for the entire period of the financial instrument; c) For financial assets purchased or
originated from credit impairment, the Group measures the loss reserves at an amount equal to the
expected credit losses over the entire period of the financial instrument. Except other receivables
whose credit risks shall be separately evaluated, the Group shall divide them into different
combinations based on the specific credit risk features:


Item Basis

Aging
This portfolio is other receivables with aging as the credit risk feature.
Combination

This combination shall regard other receivables of extremely low risk (including
Low Risk
the revolving fund, the cash deposit and the guarantee deposit) as the credit risk
Combination
feature.

Related party
Other receivables from the other entities within the consolidation scope
combination

16. Long-term Receivables

By determining whether the credit risk of long-term account receivables increases remarkably
after the initial recognition, the Group shall measure the impairment loss based on the specific

178
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

expected credit loss in the following 12 months or during the entire period of existence. Except
long-term account receivables whose credit risks shall be separately evaluated, the Group shall
divide them into different combinations based on the specific credit risk features:


Item Basis

Financing Lease Regarding the long-term receivables related to the financing lease as the
Combination credit risk characteristics

17. Inventories

The Group's inventories mainly include raw materials, products in process, semi-finished products,
Products on hand,and entrusted processing materials.

The perpetual inventory method is used for inventories. Inventories are priced at the actual cost at
the time of acquisition; the actual cost of inventories is determined by the weighted average
method when inventories are claimed or issued. Low-value consumables and packaging are
amortized through the one-off charge-off method.

The net realizable value of inventories of goods that are used directly for sale, such as inventory
goods, products in process, and materials for sale, is determined by the estimated selling price of
the inventory minus estimated sale expenses, and related taxes; the net realizable value of
inventories of materials held for production is determined by the estimated selling price of the
finished goods produced minus the estimated costs of completion, estimated sale expenses, and
related taxes.The inventories with various numbers and low unit price shall be made provisions for
depreciation reserves of inventories according to the category of inventories. For inventories that
are produced and sold in the same region with same or similar end use or purposes, and hard to be
measured separately from other items, it shall be made merger provisions for falling price of
inventories.

The net realizable value refers, in the ordinary course of business, to the account after deducting
the estimated cost of completion, estimated sale expense and relevant taxes from the estimated
sale price of inventories. The net realizable value of inventories shall be fixed on the basis of valid
evidence as well as under consideration of purpose of inventories and the effect of events after
balance-sheet-date.

After withdrawing the depreciation reserves for inventories, if the factors, which cause any write-
down of the inventories, have disappeared, causing the net realizable value of inventories is higher
than its carrying amount; the amount of write-down shall be reversed from the original amount of
depreciation reserve for inventories. The reversed amount shall be included in the profits and

179
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

losses of the current period.

18. Contract Assets

(1) Confirmation methods and standards of contract assets

Contract assets refer to the right of the Group to receive consideration after transferring goods to
customers, and this right depends on factors other than the passage of time. If the Group sells two
clearly distinguishable products to customers, it has the right to receive payment because one of
the products has been delivered, but the payment is also dependent on the delivery of the other
product, the Group has the right to receive payment as a contract assets.

(2) Determination method and accounting treatment method of expected credit loss of contract
assets

The method for determining the expected credit losses of contract assets involves measuring the
impairment losses of contract assets by referencing the method used for the impairment loss
measurement of receivables as previously described.

The Group calculates the expected credit loss of contract assets on the balance sheet date. If the
expected credit loss is greater than the book value of the current contract asset impairment
provision, the Group will recognize the difference as an impairment loss and debit the "asset
impairment loss". Credited "Contract asset impairment provision". On the contrary, the Group
recognizes the difference as an impairment gain and keeps the opposite accounting records.

If the Group actually incurs credit losses and determines that the relevant contract assets cannot be
recovered, and the written-off is approved, the "contract asset impairment reserve" is debited and
the "contracted asset" is credited based on the approved write-off amount. If the written-off
amount is greater than the provision for loss that has been withdrawn, the "asset impairment loss" 
is debited based on the difference.

19. Assets Relating to Contract Costs

(1) The method of determining the amount of assets related to contract costs

The Group’s assets related to contract costs include contract performance costs and contract
acquisition costs.

The contract performance cost, that is, the cost incurred by the Group for the performance of the
contract, does not fall within the scope of other accounting standards and meets the following
conditions at the same time, as the contract performance cost is recognized as an asset: the cost
and a current or expected contract Directly related, including direct labor, direct materials,
manufacturing expenses, clearly the cost borne by the customer, and other costs incurred only due

180
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

to the contract; this cost increases the Group's future resources for fulfilling its performance
obligations; This cost is expected to be recovered.

The contract acquisition cost, that is, the incremental cost incurred by the Group to obtain the
contract is expected to be recovered, and is recognized as an asset as the contract acquisition cost;
if the asset amortization period does not exceed one year, it is included in the current profit and
loss when it occurs. Incremental cost refers to the cost (such as sales commission, etc.) that the
Group will not incur without obtaining the contract. The Group's expenses incurred in obtaining
the contract, other than the expected incremental cost that can be recovered (such as travel
expenses incurred regardless of whether the contract is obtained, etc.), are included in the current
profit and loss when they are incurred, but it is clearly borne by the customer except.

(2) Amortization of assets related to contract costs

The Group’s assets related to contract costs are amortized on the same basis as the commodity
revenue recognition related to the asset and included in the current profit and loss.

(3) Impairment of assets related to contract costs

When the Group determines the impairment loss of assets related to contract costs, it first
determines the impairment loss of other assets related to the contract that are confirmed in
accordance with other relevant business accounting standards; then, based on their book value
higher than the Group’s transfer and If the difference between the remaining consideration that the
asset-related commodity is expected to obtain and the estimated cost incurred for the transfer of
the relevant commodity, the excess shall be provided for impairment and recognized as an asset
impairment loss.

If the depreciation factors of the previous period have changed, and the aforementioned difference
is higher than the book value of the asset, the original provision for asset impairment shall be
reversed and included in the current profit and loss, but the book value of the asset after the
reversal shall not exceed Assuming no provision for impairment is made, the book value of the
asset on the date of reversal.

20. Long-term Equity Investments

The Group's long-term equity investments mainly consist of investments in subsidiaries,
associated enterprises, and joint ventures.

The Group’s judgment on joint control is based on the fact that all participants or a combination of
participants collectively control the arrangement and that the policies of the activities related to the
arrangement shall be unanimously agreed by those participants who.

The Group is generally considered to have a significant influence on the investee when it owns,
181
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

directly or indirectly through a subsidiary, above 20% but below 50% of the voting rights of the
investee. If the Group holds less than 20% of the voting rights of the investee, it also needs to
judge whether the Group has a significant influence on the investee by taking into account the
facts and circumstances such as having representatives on the board of directors or similar
authority of the investee, or participating in the process of formulating financial and operating
policies of the investee, or having major transactions with the investee, or sending management
personnel to the investee, or providing key technical information to the investee.

If control over the investee is formed, it is a subsidiary of the Group. For long-term equity
investment acquired through business combination under the same control, the initial investment
cost of the long-term equity investments is recorded at the merger date based on the acquisition of
the merged party's share of the book value of the net assets of the ultimate controller in the
consolidated financial statement. If the book value of the net assets of the merged party on the
merger date is negative, the cost of long-term equity investments is determined as zero.

If the equity of the investee under the same control is acquired in stages through multiple
transactions to eventually result in a business combination, additional disclosures of the treatment
of long-term equity investments in the parent Group's financial statements shall be made in the
Reporting Period in which control is obtained. For example, if the business combination that is
ultimately formed through multiple transactions to acquire the equity of the investee under the
same control belongs to a package deal, the Group shall conduct accounting treatment to treat each
transaction as a single transaction to acquire control. If the transaction is not a package deal, the
initial investment cost of the long-term equity investment is based on the share of the book value
of the net assets of the merged party in the consolidated financial statements of the ultimate
controller at the merger date. The difference between the initial investment cost and the sum of the
book value of the long-term equity investment before the merger plus the book value of the new
consideration paid for further acquisition of shares at the merger date shall offset against capital
reserve; and where capital reserve is insufficient to be offset, the retained earnings shall be
adjusted.

For long-term equity investment acquired through business combination not under the same
control, the initial investment cost shall be the consolidation cost.

If the equity of the investee not under the same control is acquired in stages through multiple
transactions to eventually result in a business combination, additional disclosures of the cost
treatment of long-term equity investments in the parent Group's financial statements shall be made
in the Reporting Period in which control is obtained. For example, if the business combination that
is ultimately formed through multiple transactions to acquire the equity of the investee not under
the same control belongs to a package deal, the Group shall conduct accounting treatment to treat
182
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

each transaction as a single transaction to acquire control. If the transaction is not a package deal,
the sum of the book value of the equity investment originally held plus the cost of the new
investment shall be the initial investment cost calculated in accordance with the cost method. If
the equity held prior to the purchase date is accounted by the equity method, the relevant other
comprehensive income accounted by the original equity method shall not be adjusted. The same
basis of accounting as that used for the direct disposal of the related assets or liabilities by the
investee is used for the disposal of the investment. If the equity held prior to the purchase date is a
financial asset designated to be measured at fair value with fluctuations included in other
comprehensive income, the cumulative profit or loss on the equity previously recognized in other
comprehensive income shall be transferred from other comprehensive income to the retained
earnings; if the equity is a financial asset measured at fair value and the changes of which are
included in profits and losses of the current period, the equity previously recognized as profits and
losses from the changes in fair value shall not be transferred to investment income. If the equity
held prior to the purchase date is an investment for other equity instruments, the changes in fair
value of the equity investment accumulated in other comprehensive income before the purchase
date shall be transferred to the retained earnings.

Except for the long-term equity investments acquired through business combination hereinabove,
long-term equity investments acquired by paying cash are recorded as investment cost based on
the actual purchase price paid; long-term equity investments acquired by issuing equity securities
are recorded as investment cost based on the fair value of the equity securities issued; long-term
equity investments invested by investors are recorded as investment cost based on the value
agreed in the investment contract or agreement.

The Group calculates its investments in subsidiaries through the cost method and its investments
in joint ventures and associate enterprises through the equity method.

For long-term equity investments calculated by the cost method for subsequent measurement, the
book value of the cost of long-term equity investments shall be increased by the fair value of the
cost amount paid for the additional investment and relevant transaction costs incurred when the
additional investment is made. Cash dividends or profits declared by the investee are recognized
as investment income for the current period in accordance with the due amount.

In addition to the above-mentioned long-term equity investment obtained through business
combination, the long-term equity investment obtained by paying cash shall be regarded as the
investment cost according to the purchase price actually paid; the long-term equity investment
obtained by issuing equity securities shall be regarded as the investment cost according to the fair
value of issuing equity securities; the long-term equity investment invested by investors shall be
regarded as the investment cost according to the investment contract or agreement The value of
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Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

the Group is regarded as the cost of investment.

The Group adopts the cost method for investment in subsidiaries and the equity method for
investment in joint ventures and associated enterprises.

For the long-term equity investment whose subsequent measurement adopts the cost method,
when the additional investment is made, the book value of the long-term equity investment cost is
increased according to the fair value of the cost amount paid by the additional investment and the
relevant transaction expenses. The cash dividends or profits declared to be distributed by the
investee shall be recognized as the current investment income according to the amount that should
be enjoyed.

For the long-term equity investment with equity method for subsequent measurement, the book
value of the long-term equity investment will increase or decrease with the change of the owner's
equity of the invested entity. When confirming the share of the net profit and loss of the investee,
the net profit and loss of the investee shall be calculated based on the fair value of the identifiable
assets of the investee at the time of obtaining the investment, in accordance with the accounting
policies and accounting period of the Group, and offset the internal transaction profit and loss
between the joint venture and the joint venture according to the shareholding ratio Profit is
recognized after adjustment.

For disposal of long-term equity investment, the difference between the book value and the actual
price shall be included in the current investment income. For long-term equity investment
accounted by equity method, other comprehensive income accounted by the original equity
method shall be accounted on the same basis as the investee's direct disposal of relevant assets or
liabilities when the equity method is terminated, and the owner's equity shall be recognized due to
other changes in owner's equity of the investee except net profit and loss, other comprehensive
income and profit distribution When the equity method is terminated, all of them shall be
transferred into the current investment income.

In case of loss of joint control or significant influence on the investee due to the disposal of part of
equity investment, the remaining equity after disposal shall be accounted according to the relevant
provisions of the recognition and measurement standards of financial instruments, and the
difference between the fair value and the book value of the remaining equity on the date of loss of
joint control or significant influence shall be included in the current profits and losses. When the
equity method is terminated, the other comprehensive income of the original equity investment
recognized as a result of its accounting with the equity method shall be handled on the same basis
as the investee's direct disposal of the relevant assets or liabilities and carried forward in
proportion. The owner's equity recognized as a result of the changes in the owner's equity of the

184
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

investee other than net profit and loss, other comprehensive income and profit distribution shall be
carried forward in proportion Transfer to current investment income.

If the control over the investee is lost due to the disposal of part of the long-term equity
investment, and the residual equity after disposal can jointly control or exert significant influence
on the investee, it shall be accounted according to the equity method, and the difference between
the book value of the disposal equity and the disposal consideration shall be included in the
investment income, and the residual equity shall be regarded as adjusted by the equity method
when it is obtained If the residual equity cannot exercise joint control or exert significant influence
on the investee, the accounting treatment shall be carried out according to the relevant provisions
of the recognition and measurement standards of financial instruments. The difference between the
book value of the disposal equity and the disposal consideration shall be included in the
investment income, and the difference between the fair value and the book value of the residual
equity on the day of losing control shall be included in the current profits and losses.

If the transaction from step-by-step disposal of equity to loss of control right does not belong to
package transaction, accounting treatment shall be carried out for each transaction separately. If it
is a "package deal", each transaction will be treated as a transaction of disposal of subsidiaries and
loss of control. However, before the loss of control, the difference between the disposal price of
each transaction and the book value of the long-term equity investment corresponding to the
disposed equity will be recognized as other comprehensive income, and when the control is lost, it
will be transferred to the current account of loss of control Period profit and loss.

21. Investment Property

The term “investment property” refers to the real estate held for generating rent and/or capital
appreciation. Investment property of the Group include the right to use any land which has already
been rented; the right to use any land which is held and prepared for transfer after appreciation;
and the right to use any building which has already been rented. In addition, if the board of
directors (or similar organizations) makes a written resolution to use the vacant buildings held by
the Group for operating lease and the holding intention will not change in a short time, they will
also be listed as investment real estate.

The initial measurement of the investment property shall be made at its cost. Subsequent
expenditures incurred for an investment property is included in the cost of the investment property
when it is probable that economic benefits associated with the investment property will flow to the
Group and the cost can be reliably measured, otherwise the expenditure is recognized in profit or
loss in the period in which they are incurred.

The Group shall make a follow-up measurement to the investment property by employing the cost
185
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

pattern on the date of the balance sheet. An accrual depreciation or amortization shall be made for
the investment property in the light of the accounting policies of the use right of buildings or lands.

For details of impairment test method and withdrawal method of impairment provision of
investment property, please refer to Note IV. 27. “Long-term assets impairment”.

The Group's investment real estate adopts the average life method for depreciation or amortization.
The expected service life, net residual value rate and annual depreciation (amortization) rate of all
kinds of investment real estate shall refer to the depreciation policy of buildings in fixed assets and
the amortization policy of land use right in intangible assets.

When owner-occupied real estate or inventories are changed into investment property or
investment property is changed into owner-occupied real estate, of which book value prior to the
change shall be the entry value after the change.

When an investment property is changed to an owner-occupied real estate, it would be transferred
to fixed assets or intangible assets at the date of such change. When an owner-occupied real estate
is changed to be held to earn rental or for capital appreciation, the fixed asset or intangible asset is
transferred to investment property at the date of such change. If the fixed asset or intangible asset
is changed into investment property measured by adopting the cost pattern, whose book value
prior to the change shall be the entry value after the change; if the fixed asset or intangible asset is
changed into investment property measured by adopting the fair value pattern, whose fair value on
the date of such change shall be the entry value after the change.

An investment property is derecognized on disposal or when the investment property is
permanently withdrawn from use and no future economic benefits are expected from its disposal.
The amount of proceeds on sale, transfer, retirement or damage of an investment property less its
carrying amount and related taxes and expenses is recognized in profit or loss in the period in
which it is incurred.

22. Fixed Assets

The Group’s fixed assets are tangible assets held for the production of goods, provision of services,
rental or operation management and have a useful life of more than one year.

Fixed assets should be recognized when it is probable that the economic benefits associated with
them will be incorporated into the Group and their cost can be measured reliably. The Group’s
fixed assets include buildings and constructions, machinery and equipment, electronic equipment,
transportation equipment, and other equipment.

The Group depreciates all fixed assets by straight-line method, except for fully depreciated fixed
assets that continue to be used and land that is separately valued. The categorized depreciable lives,
186
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

estimated net salvage rates and depreciation rates of the Group’s fixed assets are as follows:


Annual
Depreciation Expected net
No. Category Method deprecation
period (year) salvage value (%)
(%)

Housing and Straight-line
20-40 5-10.00 2.25-4.75
1 building depreciation

Machinery Straight-line
5-10 5-10.00 9.00-19.00
2 equipment depreciation

Electronic Straight-line
3-5 5-10.00 18.00-31.67
3 equipment depreciation

Transportation Straight-line
3-5 5-10.00 18.00-31.67
4 vehicle depreciation

Straight-line
Other equipment 5 5-10.00 18.00-19.00
5 depreciation

The estimated useful life, estimated net salvage value and depreciation method of fixed assets are
reviewed at the end of each year. Accounting estimation methods are used when changes are
required.

23. Construction in Progress

The cost of construction in progress is determined based on actual project expenditures, including
all necessary project expenditures incurred during construction, borrowing costs to be capitalized
before the project reaches its predetermined usable state, and other related expenses, etc.

On the date when the construction in progress reaches its intended useable state, fixed assets are
carried forward at the estimated value based on the project budget, cost or actual cost of the
project, etc. Depreciation starts from the following month, and the difference in the original value
of fixed assets is adjusted after the completion of the final accounting procedures.

Construction in progress is transferred to fixed assets upon reaching the predetermined usable state,
with the criteria as follows:


Item Criteria for carrying forward fixed assets


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Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)


Item Criteria for carrying forward fixed assets

The main construction project and ancillary projects are substantially
completed, meeting the predetermined design requirements. Upon
joint acceptance by the Company’s Engineering Department and
units responsible for surveying, design, construction, supervision,
Houses and buildings
etc., and government departments such as the Fire Services
Department and the Housing Authority, and reaching the
predetermined usable state following process approval, it is
transferred to fixed assets.

The equipment management department and the equipment
manufacturer are jointly responsible for the installation and
commissioning of the equipment, including hardware debugging,
machinery and equipment
process conditions debugging, etc. Upon completion of debugging
and reaching the predetermined usable state following process
approval, it is transferred to fixed assets.


24. Borrowing Costs

The Group capitalizes borrowing costs directly attributable to the acquisition, construction, or
production of qualifying assets as part of the cost of those assets. Other borrowing costs are
recognized as expenses in the current period. The assets determined by the Group that meet the
conditions for capitalization include: fixed assets, investment real estate and inventory that need
more than one year of purchasing, construction or production activities to reach the preset usable
or sellable status, shall be capitalized when the asset expenditure has occurred, the borrowing
costs have occurred, and the purchasing, construction or production activities necessary for the
asset to reach the preset usable or sellable status have begun; When the acquisition, construction or
production of assets that meet the capitalization conditions reach the intended usable or sellable
status, capitalization is stopped, and the borrowing costs incurred thereafter are included in the
profits and losses of the current period. If there is an abnormal interruption in the acquisition,
construction or production of assets that meet the capitalization conditions and the interruption
lasts for more than 3 consecutive months, the capitalization of borrowing costs will be suspended
until the acquisition, construction or production of assets starts again.

During the capitalization period, the Group recognizes the amount of borrowing costs capitalized
in each accounting period using the following method: In the case of borrowing special-purpose
borrowings, the amount of interest expense actually incurred in the current period, less interest
188
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

income earned on the unused borrowed funds deposited in the bank or investment income earned
on temporary investments, shall be capitalized; in the case of occupying general borrowings, the
amount shall be determined on the basis of the weighted average number of asset expenditures for
the portion of accumulated asset expenditures in excess of the special-purpose borrowings
multiplied by the capitalization rate of the general borrowings occupied, where the capitalization
rate is calculated and determined on the basis of the weighted average interest rate of the general
The capitalization rate is based on the weighted average interest rate of general borrowings.

25. Right-of-Use Assets

The right-of-use assets refer to the right of the Group as the lessee to use the leased assets during
the lease term.

(1) Initial measurement

After the commencement date of the lease term, the Group uses the cost for initial measurement of
right-of-use assets. The cost includes the following four items: a) The initial measurement amount
of lease liabilities; b) If there is a lease incentive for the lease payment paid on or before the
commencement date of the lease term, the relevant amount of the lease incentive already enjoyed
shall be deducted; c) The initial direct expenses incurred are the incremental costs incurred in
reaching the lease; d) The costs expected to be incurred for dismantling and removing the leased
assets, restoring the site where the leased assets are located or restoring the leased assets to the
state agreed in the lease terms, except those incurred for the production of inventories.

(2) Follow-up measurement

After the commencement date of the lease term, the Group adopts the cost model to carry out
follow-up measurement of the right-of-use assets, that is, the right-of-use assets are measured at
cost less accumulated depreciation and accumulated impairment losses. If the Group re-measures
the lease liabilities according to the relevant provisions of the lease standards, the book value of
the right-of-use assets shall be adjusted accordingly.

(3)Depreciation of right-of-use assets

From the commencement date of the lease term, the Group has accrued depreciation on the right-
of-use assets. Right-of-use assets are usually depreciated from the month when the lease term
begins. The accrued depreciation amount is included in the cost of related assets or current profits
and losses according to the use of the right-of-use assets.

When determining the depreciation method of the right-of-use assets, the Group makes a decision
based on the expected consumption mode of the economic benefits related to the right-of-use
assets, and accrues depreciation for the right-of-use assets on the straight-line method.

When determining the depreciation period of the right-of-use assets, the Group follows the
following principles: If the ownership of the leased assets can be reasonably determined when the
lease term expires, depreciation shall be accrued within the remaining service life of the leased
assets; if it cannot be reasonably determined that the ownership of the leased asset can be obtained
when the lease term expires, depreciation shall be accrued within the shorter of the lease term and
189
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

the remaining service life of the leased asset.

(4)Impairment of right-of-use assets

If the right-of-use assets are impaired, the Group carries out subsequent depreciation according to
the book value of the right-of-use assets after deducting the impairment loss.

26. Intangible Assets

The Group’s intangible assets include land use rights, patented technology and non-proprietary
technology, which are measured at actual cost at the time of acquisition. Acquired intangible assets
are stated at actual cost based on the actual price paid and related other expenses. The actual cost
of intangible assets invested by investors is determined at the value agreed in the investment
contract or agreement, but if the agreed value in the contract or agreement is not fair, the actual
cost is determined at fair value. Intangible assets, such as patents, acquired in a merger not under
common control but owned by the acquiree but not recognized in its financial statements, are
recognized as intangible assets at fair value at the time of initial recognition of the acquiree’s
assets.

(1) Useful life and its determination basis, estimation, amortization method, or review procedure

The Group's intangible assets include land use rights, patented technology, non-patented
technology, etc., measured at the actual cost at the time of acquisition. For purchased intangible
assets, the actual cost is determined by the actual payment made and related expenditures. For
intangible assets contributed by investors, the actual cost is determined based on the value agreed
upon in the investment contract or agreement; however, if the contractually agreed value is not fair,
the fair value is used to determine the actual cost. Intangible assets such as patents, which are
acquired in a business combination under common control but not recognized in the financial
statements of the acquiree, are recognized as intangible assets at their fair value upon initial
recognition of the assets of the acquiree.

(2) Scope of R&D expenditures and related accounting treatment

The scope of the Group's R&D expenditures includes salaries of R&D personnel, direct input
costs, depreciation and amortization, design fees, equipment testing fees, fees for R&D outsourced
to external parties, and other expenses.

The Group classifies its internal research and development project expenditures into expenditure
on the research phase and expenditure on the development phase, based on the nature of the
expenditures and the degree of uncertainty in whether the R&D activities will result in an
intangible asset. Expenditure on the research phase are recognized in profit or loss when incurred.
Expenditure on the development phase are capitalized when all of the following conditions are
met:

a) The Group has assessed the technical feasibility of completing the intangible asset so that it will
be available for use or sale.

b) The Group intends to complete the intangible asset and use or sell it.

c) It is probable that the intangible asset will generate future economic benefits.

190
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

d) The Group has the adequate technical, financial, and other resources to complete the
development and to use or sell the intangible asset.

e) The expenditure attributable to the development phase of the intangible asset can be measured
reliably. Development phase expenditures not meeting these capitalization criteria are recognized
in profit or loss for the current period when incurred.

27. Impairment of Long-term Assets

For non-current non-financial Assets of fixed assets, projects under construction, intangible assets
with limited service life, investing real estate with cost model, long-term equity investment of
subsidiaries, cooperative enterprises and joint ventures, the Group should judge whether decrease
in value exists on the date of balance sheet. Recoverable amounts should be tested for decrease in
value if it exists. Goodwill, intangible assets with uncertain service life and other non-accessible
intangible assets should be tested for impairment at the end of each year, regardless of whether
there is any indication of impairment.

(1) Impairment of non-current assets other than financial assets (except goodwill)

If the recoverable amount is less than carrying value in impairment test results, the provision for
impairment of differences should include in impairment loss. Recoverable amounts would be the
higher of net value of asset fair value deducting disposal charges or present value of predicted
cash flow. Asset fair value should be determined according to negotiated sales price of fair trade.
If no sales agreement exists but with asset active market, fair value should be determined
according to the Buyer’s price of the asset. If no sales agreement or asset active market exists,
asset fair value could be acquired on the basis of best information available. Disposal expenses
include legal fees, taxes, cartage or other direct expenses of merchantable Assets related to asset
disposal. Present value of predicted asset cash flow should be determined by the proper discount
rate according to Assets in service and predicted cash flow of final disposal. Asset depreciation
reserves should be calculated on the basis of single Assets. If it is difficult to predict the
recoverable amounts for single Assets, recoverable amounts should be determined according to the
belonging asset group. Asset group is the minimum asset combination producing cash flow
independently.

(2) Impairment of goodwill

In impairment test, carrying value of the business reputation in financial report should be shared to
beneficial asset group and asset group combination in collaboration of business merger. It is
shown in the test that if recoverable amounts of shared business reputation asset group or asset
group combination are lower than book value, it should determine the impairment loss.
Impairment loss amount should firstly be deducted and shared to the carrying value of business

191
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

reputation of asset group or asset group combination, then deduct carrying value of all assets
according to proportions of other carrying value of above assets in asset group or asset group
combination except business reputation.

The methodology, parameters and assumptions for the goodwill impairment test are described in
Note VI-21.

After the asset impairment loss is determined, recoverable value amounts would not be returned in
future.

28. Long-term Deferred Expenses

The Long-term deferred expenses of the Group including renovation cost, mold cost and so on
shall be amortized evenly during the benefit period. If these long-term deferred expenses cannot
benefit the future accounting period, the amortized value of this item that has not been amortized
shall be transferred to the current profit and loss.

29. Contract Liabilities

Liabilities of contracts refer to the Group's obligation to transfer goods to customers due to the
consideration received or receivable from customers. Before the transfers, if the customer has paid
the consideration or if the Group has obtained the right to unconditionally collect the contract
consideration, the liabilities of contracts shall be recognized based on the amount received or
receivable at the earlier point between the actual payment by the customer and the payment due.

30. Employee Compensation

Salaries of staff of the Group include short-term salary, post-employment benefits, termination
compensation, and other long-term benefits.

Short-term salary mainly includes wages, bonuses, allowances and subsidies, as well as employee
benefits, medical insurance, maternity insurance, employment injury insurance, housing provident
fund, labor union expenses, and staff education expenses, and non-monetary benefits. During the
accounting period when the employees provide services, the actual short-term compensation is
recognised as a liability that shall be included in the current profit and loss or the cost of related
assets according to the beneficiary.

The post-employment benefits mainly include the basic endowment insurance, etc. They are
divided into defined contribution plans and defined benefit plans in accordance with the risks and
obligations undertaken by the Group. According to the defined contribution plan, the deposit paid
to a separate entity in exchange for the services provided by the employees during the accounting
period on the balance sheet date is recognized as liabilities, and shall be included in the current

192
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

profit and loss or the cost of related assets according to the beneficiary. If the Group has a defined
benefit plan, the specific accounting method should be explained.

When terminating labour relations before expiration of contract, or layoffs with compensations,
and the Group cannot terminate the labour relations unilaterally or reduce the demission welfare,
remuneration and liabilities produced from the demission welfare should be determined and
included in current profits and losses when determining the costs of demission welfare and
recombination. However, demission welfare not fully paid within 12 months after annual
Reporting Period should be handled the same as other long-term employees’ payrolls.

The inside employee retirement plan is treated by adopting the same principle with the above
dismiss ion welfare. The Group would recorded the salary and the social security insurance fees
paid and so on from the employee’s service termination date to normal retirement date into current
profits and losses (dismission welfare) under the condition that they meet the recognition
conditions of estimated liabilities.

The other long-term welfare that the Group offers to the staffs, if met with the setting drawing plan,
should be accounting disposed according to the setting drawing plan, while the rest should be
disposed according to the setting revenue plan.

31. Lease Liabilities

(1) Initial measurement

The Group initially measures the lease obligation at the present value of the lease payments
outstanding at the commencement date of the lease term.

1) Lease payments

Lease payments refer to the amount paid by the Group to the lessor related to the right to use the
leased assets during the lease term, including: a) Fixed payment amount and substantial fixed
payment amount. If there is lease incentive, deduct the amount related to lease incentive; b) The
variable lease payment amount depending on the index or ratio, which is determined according to
the index or ratio on the commencement date of the lease term at the initial measurement; c) When
the Group reasonably determines the exercise price of the purchase option when it will exercise it;
d) The lease term reflects the amount to be paid to exercise the termination option when the Group
will exercise the termination option; e) The amount expected to be paid based on the residual
value of the guarantee provided by the Group.

2) Rate of discount

When calculating the present value of the lease payments, the Group uses the interest rate implicit
in lease as the rate of discount, which is the interest rate at which the sum of the present value of
the lessor's lease receipts and the present value of the unsecured residual value equals the sum of
the fair value of the leased asset and the lessor's initial direct expenses. If the Group fails to
determine the interest rate implicit in lease, the incremental interest rate on borrowing will be used
193
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

as the rate of discount. The incremental interest rate on borrowing shall mean the interest rate
payable by the Group to borrow funds under similar mortgage conditions during similar periods to
acquire assets close to the value of the right-of-use assets under similar economic circumstances.
The interest rate is related to the following matters: a) The Group's own situation, that is, the
Company's solvency and credit status; b) The term of "loan", that is, the lease term; c) The amount
of "borrowed" funds, that is, the amount of lease liabilities; d) "Mortgage conditions", that is, the
nature and quality of the underlying assets; e) Economic environment, including the jurisdiction
where the lessee is located, the valuation currency, the time when the contract is signed, etc. The
incremental borrowing rate is based on the Group's latest asset-based lending interest rate for
similar assets and adjusted to take into account the above factors.

(2) Follow-up measurement

After the commencement date of the lease term, the Group carries out follow-up measurement of
lease liabilities according to the following principles: a) When recognizing the interest of lease
liabilities, the Group will increase the carrying amount of lease liabilities; b) When paying the
lease payments, the Group will reduce the book amount of the lease liability; c) When the lease
payments changes due to revaluation or lease change, the Group will remeasure the book value of
lease liability.

The Group calculates the interest expenses of the lease obligations during each period of the lease
term at a fixed periodic interest rate, and includes them (except those that shall be capitalized) in
profit or loss for the current period. Periodic rate refers to the rate of discount adopted by the
Group when initially measuring lease liabilities, or the revised rate of discount adopted by the
Group when lease liabilities need to be remeasured according to the revised rate of discount due to
changes in lease payments or lease changes.

(3) Re-measurement

After the commencement date of the lease term, the Group re-measures the lease liability based on
the present value of the changed lease payment and adjusts the book value of the right-of-use
assets accordingly when the following circumstances occur. If the carrying value of the right-of-
use assets has been reduced to zero, but the lease obligations still need to be further reduced, the
Group will include the remaining amount in profit or loss for the current period. a) The actual
fixed payment amount changes (in this case, the original rate of discount is used for discount); b)
The estimated amount payable of the residual value changes (in this case, the original rate of
discount is used for discount); c) The index or ratio used to determine the lease payment changes
(in this case, the revised rate of discount is used for discount); d) The evaluation result of the
purchase option changes (in this case, the revised rate of discount is adopted for discount); e) The
evaluation result or actual exercise of the lease renewal option or the lease termination option
changes (in this case, the revised rate of discount is adopted for discount).

32. Provisions

The Group should recognize the related obligation as a provision for liability when the obligation
meets the following conditions: (1) That obligation is a present obligation of the enterprise; (2) It
is probable that an outflow of economic benefits from the enterprise will be required to settle the

194
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

obligation; (3) A reliable estimate can be made of the amount of the obligation.

The projected liabilities are initially measured in accordance with the optimal estimate of the
necessary expenses for the fulfillment of the current obligation, with the risks related to contingent
matters, uncertainty, the time value of money, and other factors taken into consideration. The
Group reviews the current best estimate of the provisions for contingent liabilities at the balance
sheet date and adjusts the carrying amount of the provision as necessary.

When all or some of the expenses necessary for the liquidation of an provisions of an enterprise is
expected to be compensated by a third party, the compensation should be separately recognized as
an asset only when it is virtually certain that the reimbursement will be obtained. Besides, the
amount recognized for the reimbursement should not exceed the carrying value of the estimated
liabilities.

33. Principles of Revenue Recognition and Measurement Method

The revenue of the Group mainly consists of the income from main business and the income from
other businesses.

(1)Revenue recognition principle

The Group has fulfilled the performance obligations in the contract, that is, when the customer
obtains control of the relevant goods or services, revenue is recognized. Obtaining control over
related goods or services means being able to lead the use of the goods or the provision of such
services and obtain almost all of the economic benefits from it.

On the starting date of the contract, the Group evaluates the contract, identifies each individual
performance obligation contained in the contract, and determines whether each individual
performance obligation is performed within a certain period of time or at a certain point in time.

When one of the following conditions is met, it is a performance obligation within a certain period
of time, otherwise, it is a performance obligation at a certain point in time:

①The customer obtains and consumes the economic benefits brought by the Group's performance
at the same time the Group performs the contract.

②The customer can control the products under construction during the performance of the Group.

③ The goods produced during the performance of the Group have irreplaceable uses, and the
Group has the right to collect payments for the cumulative performance of the contract during the
entire contract period.

For performance obligations performed within a certain period of time, the Group recognizes
revenue according to the performance progress during that period. When the performance progress
cannot be reasonably determined, if the cost incurred by the Group is expected to be compensated,


195
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

the revenue shall be recognized according to the amount of the cost incurred until the performance
progress can be reasonably determined.

For performance obligations performed at a certain point in time, the Group recognizes revenue at
the point when the customer obtains control of the relevant goods or services. When judging
whether a customer has obtained control of goods or services, the Group considers the following
signs:

①The Group enjoys the current right to receive payment for the goods or services.

②The Group has transferred the legal ownership of the product to the customer.

③The Group has transferred the goods in kind to the customer.

④ The Group has transferred the main risks and rewards of the ownership of the product to the
customer.

⑤The customer has accepted the goods or services.

The Group has transferred goods or services to customers and the right to receive consideration is
listed as contract assets, and contract assets are devalued on the basis of expected credit losses.
The Group's unconditional right to collect consideration from customers is listed as receivables.
The Group’s obligation to transfer goods or services to customers due to the consideration
received from customers is listed as contract liabilities.

(2) Principles of income measurement

① If the contract contains two or more performance obligations, at the beginning of the contract,
the Group will allocate the transaction price to each individual performance obligation based on
the relative proportion of the stand-alone selling price of the goods or services promised by each
individual performance obligation. Revenue is measured at the transaction price of each individual
performance obligation.

② The transaction price is the amount of consideration that the Group expects to be entitled to
receive due to the transfer of goods or services to customers, excluding payments collected on
behalf of third parties and payments expected to be returned to customers. The transaction price
confirmed by the Group does not exceed the amount at which the accumulated confirmed income
will most likely not undergo a significant reversal when the relevant uncertainty is eliminated. It is
expected that the money returned to the customer will not be included in the transaction price as a
liability.

③If there is variable consideration in the contract, such as cash discounts and price guarantees in
part of the contract between the Group and its customers, the Group determines the best estimate

196
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

of the variable consideration according to the expected value or the most likely amount, but
includes the variable The transaction price of the consideration shall not exceed the amount at
which the accumulated confirmed income is unlikely to be reversed significantly when the
relevant uncertainty is eliminated.

④ For the consideration payable to customers, the Group offsets the transaction price from the
consideration payable to customers, and offsets the current income at the time when the relevant
income is recognized and the payment (or promised to pay) the customer consideration is later,
unless the consideration payable is for Obtain other clearly distinguishable products from
customers.

⑤For sales with a sales return clause, when the customer obtains control of the relevant product,
the Group recognizes revenue based on the amount of consideration expected to be received due to
the transfer of the product to the customer, and the expected return due to the sales return is
recognized as an estimated liability; At the same time, according to the expected book value of
the returned goods at the time of transfer, the balance after deducting the estimated cost of
recovering the goods (including the value impairment of the returned goods) is recognized as an
asset, that is, the return cost receivable, according to the transferred goods The book value at the
time of the transfer, deducting the net carry-over cost of the aforementioned asset cost. On each
balance sheet date, the Group re-estimates the future sales returns and re-measures the
aforementioned assets and liabilities.

⑥ If there is a significant financing component in the contract, the Group shall determine the
transaction price based on the amount payable in cash when the customer assumes control of the
goods or services. Using the discount rate that discounts the nominal amount of the contract
consideration into the current commodity price, the difference between the determined transaction
price and the amount of the consideration promised in the contract is amortized by the actual
interest method during the contract period. On the starting date of the contract, the Group expects
that the time between the customer's acquisition of control of the goods or services and the
customer's payment of the price will not exceed one year, regardless of the significant financing
components in the contract.

⑦ According to contractual agreements, legal provisions, etc., the Group provides quality
assurance for the products sold and the assets built. For guarantee-type quality assurance to assure
customers that the goods sold meet the established standards, the Group conducts accounting
treatment in accordance with "contingent events-estimated liabilities". For the service quality
assurance that provides a separate service in order to assure customers that the goods sold meet the
established standards, the Group regards it as a single performance obligation, based on the stand-
alone selling price of the quality assurance of goods and services. In a relative proportion, part of
197
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

the transaction price is allocated to service quality assurance, and revenue is recognized when the
customer obtains control of the service. When assessing whether the quality assurance provides a
separate service in addition to ensuring that the products sold meet the established standards, the
Group considers whether the quality assurance is a legal requirement, the quality assurance period,
and the nature of the Group's commitment to perform the tasks.

⑧ When the construction contract between the Group and the customer is changed: ① If the
contract change adds clearly distinguishable construction services and contract prices, and the new
contract price reflects the stand-alone selling price of the new construction services, the Group
will The contract change shall be treated as a separate contract for accounting treatment; ②If the
contract change does not fall into the above-mentioned circumstance ①, and there is a clear
distinction between the construction services that have been transferred and the construction
services that have not been transferred on the date of the contract change, the Group Treat it as the
termination of the original contract, and at the same time, merge the unfulfilled part of the original
contract and the changed part of the contract into a new contract for accounting treatment; ③If the
contract change does not fall into the above situation ①, and the construction service has been
transferred on the date of contract change There is no clear distinction between the construction
service and the untransferred construction service. The Group accounts for the changed part of the
contract as a component of the original contract. The resulting impact on the recognized revenue
will be adjusted on the date of contract change.

(3) Specific methods of revenue recognition

① Revenue recognized on time

The Group's sales of household appliances, electronic components, etc., belong to the performance
obligation performed at a certain point in time.

Recognition conditions for income from domestic sales of goods and overseas direct sales of
goods: The Group has delivered the product to the customer in accordance with the contract and
the customer has received the product, the payment has been recovered or the receipt of payment
has been obtained, and the relevant economic benefits are likely to flow in. The main risks and
rewards have been transferred, and the legal ownership of the goods has been transferred.

Conditions for confirming the income of exported goods: The Group has declared the products for
export according to the contract, obtained the bill of lading, and delivered the goods to the carrier
entrusted by the purchaser. The payment has been recovered or the receipt of payment has been
obtained and relevant economic benefits are likely to flow in. The main risks and rewards of
commodity ownership have been transferred, and the legal ownership of commodities has been
transferred.
198
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

②Income confirmed according to the performance progress

The Group's business contracts with customers for project construction, online advertising,
operating leases, etc. are performance obligations performed within a certain period of time, and
revenue is recognized according to the progress of the performance.

34. Government Grants

The government grants of the Group are divided into asset-based grants related to and income-
based grants. Asset-based grants refer to the government grants for long-term assets obtained by
the purchase, construction, and other ways. Income-based grants refer to other grants. If the
beneficiaries are not specified in government documents, the Group will make the distinction
according to the aforesaid principle. Beneficiaries which are difficult to categorize shall be
classified as an income-based government grant as a whole.

Current elements of government grants shall be measured based on the amount actually received.
Those shall be measured according to the amount receivable are grants paid according to a fixed
quota standard, or funds that meet the relevant conditions stipulated by the financial support policy
with conclusive evidence at the end of the year and which are expected as the financial support.
Non-monetary elements of the government grants shall be measured at fair value. Those whose
fair value cannot be obtained reliably shall be measured at its nominal amount (RMB1).

Asset-based grants shall be used to offset the carrying value of related assets or presented as
deferred income, and shall, over the life of the related asset, be included in the current profits and
losses by the equal amortization method.

If the related asset is sold, transferred, scrapped, or damaged before the end of its useful life, its
deferred income that has not been distributed shall be transferred to the current profit and loss of
asset disposal.

Income-based grants that are used to compensate related costs or losses in subsequent periods
shall be deemed as deferred income and shall be included in the current profits and losses during
the period when the related costs or losses are recognized. Government grants related to routine
activities shall be included in other income in accordance with the nature of the transaction.
Government grants not related to routine activities shall be included in non-operating income and
expenditure.

The Group obtains interest grants on policy-related concessional loans in two different ways: the
interest subsidy funds are allocated by the government either to the lending bank or directly to the
Group. The respective accounting treatment is carried out as follows:



199
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

(1) Where the government allocates the funds to the lending bank, and the bank provides a loan to
the Group at a policy-related preferential interest rate, the actual amount of the loan received is
taken as the entry value, and the borrowing costs are calculated based on the loan principal and the
policy-related preferential interest rate.

(2) Where the government allocates the funds directly to the Group, the grants are offset against
borrowing costs.

Where the government grants that the Group has recognized in accounting need to be returned, the
accounting treatment in the current period is carried out as follows:

1) If the book value of an asset is offset on initial recognition, the book value will be adjusted;

2) If there is deferred income, the book balance of the deferred income will be offset, and the
excess will be included in profit or loss in the current period;

3) Under any other circumstances, the grants will be included in profit or loss in the current period.

35. Deferred Income Tax Assets/Deferred Income Tax Liabilities

The Group's deferred tax assets and deferred tax liabilities are calculated and recognized based on
the difference (temporary difference) between the tax base and book value of the assets and
liabilities. In the case of deductible losses that can be deducted from taxable income in subsequent
years in accordance with the provisions of the tax laws, the corresponding deferred income tax
assets are recognized. In the case of temporary differences arising from the initial recognition of
goodwill, the corresponding deferred income tax liabilities are not recognized. With respect to
temporary differences arising from the initial recognition of an asset or liability in a transaction
which isn’t a business combination and which affects neither accounting profit nor taxable income
(or deductible losses), the corresponding deferred income tax assets and deferred income tax
liabilities are not recognized. On the balance sheet date, the deferred income tax assets and
deferred income tax liabilities are measured at the tax rate applicable to the period during which
the assets are expected to be recovered or the liabilities are expected to be settled.

The Group recognizes deferred income tax assets to the extent of the taxable income which it is
most likely to obtain and which can be deducted from deductible temporary differences,
deductible losses and tax credits.

36. Leasing

(1) Identification of leases

The term "lease" refers to a contract whereby the lessor transfers the right of use regarding the
leased asset(s) to the lessee within a specified time in exchange for consideration. On the
commencement date of the contract, the Group assesses whether the contract is a lease or contains
200
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

a lease. If a party to the contract transfers the right allowing the control over the use of one or
more assets that have been identified within a certain period, in exchange for a consideration, such
contract is a lease or includes a lease. In order to determine whether a party to the contract
transfers the right allowing the control over the use of the identified assets for a certain period of
time, the Group assesses whether the customers in the contract are entitled to obtain almost all the
economic benefits arising from the use of the identified assets during the use period, and have the
right to dominate the use of the identified assets during the use period.

If a contract contains multiple single leases at the same time, the Group will split the contract, and
conduct accounting treatment of each single lease respectively. If a contract contains both lease
and non-lease parts at the same time, the Group will split the lease and non-lease parts for
accounting treatment.

(2) The Group as lessee

1) Lease recognition

On the commencement date of the lease term, the Group recognizes the right-of-use assets and
lease obligations in respect of the lease. For the recognition and measurement of right-of-use
assets and lease liabilities, please refer to Note IV "25. Right-of-use assets" and "31. Lease
liabilities".

2) Lease change

A lease change refers to a change in the scope, consideration, and term of lease outside the
original contract clauses, including the addition or termination of the one or several rights to use
lease assets, and the extension or reduction of the lease term specified in the contract. The
effective date of lease change refers to the date when both parties reach an agreement on lease
change.

If the lease changes and the following conditions are met at the same time, the Group will account
for the lease change as a separate lease: a) The lease change expands the lease scope or extends
the lease term by increasing the right to use one or more leased assets; b) The increased
consideration is equivalent to the separate price of the expanded lease scope or the extended lease
term adjusted according to the contract conditions.

If the lease change is not accounted for as a separate lease, on the effective date of the lease
change, the Group will allocate the consideration of the changed contract in accordance with the
relevant provisions of the lease standards and re-determine the changed lease term. The revised
rate of discount is used to discount the changed lease payments to remeasure the lease liability.
When calculating the present value of the changed lease payments, the Group uses the interest rate
implicit in lease as the rate of discount. If the interest rate implicit in lease cannot be determined,
the Group adopts the incremental borrowing rate of the lessee on the effective date of the lease
change as the rate of discount. With regard to the impact of the above-mentioned lease liability
adjustment, the Group conducts accounting treatment according to the following situations: a) The
lessee will correspondingly reduce the book value of the right-of-use assets and include the profit
or loss of the lease terminated in part or whole in the current profit or loss, if the lease change
narrows the scope of lease or shortens the lease term. b) The lessee will correspondingly adjust the
201
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

book value of the right-of-use assets, if other lease changes result in the re-measurement of the
lease obligation.

3) Short-term and low-value asset leases

For short-term leases with a lease term not exceeding 12 months and low-value asset leases with
lower value when single leased assets are brand new assets, the Group chooses not to recognize
right-of-use assets and lease liabilities. The Group includes the payments of short-term and low-
value asset leases incurred during each period of the lease term in the profit or loss for the current
period or the cost of relevant assets by the straight-line method.

(3) The Group as lessor

On the basis that (1) the contract assessed is a lease or includes a lease, the Group, as the lessor,
classifies leases into finance leases and operating leases on the lease commencement date.

If a lease substantially transfers virtually all risks and rewards associated with ownership of the
leased asset, the lessor classifies the lease as a finance lease and leases other than finance leases as
operating leases.

The Group usually classifies a lease that falls under any one or more of the following
circumstances as a finance lease: a) When the lease term expires, the ownership of the leased asset
is transferred to the lessee; b) The lessee has the option to purchase the leased asset(s). As the
agreed purchase price is low enough compared with the fair value of the leased asset(s) at the time
the option is expected to be exercised, it can be reasonably determined at the inception of the lease
that the lessee will exercise the option; c) Although the ownership of the assets is not transferred,
the lease term accounts for most of the service life of the leased assets; d) On the lease
commencement date, the present value of lease receipts is almost equivalent to the fair value of
leased assets; e) The leased assets are special in nature, and only the lessee can use them without
major renovation. The Group may also classify a lease that falls under any one or more of the
following circumstances as a finance lease: a) If the lessee cancels the lease, losses to the lessor
caused by the cancellation will be borne by the lessee; b) The gains or losses arising from the
fluctuation of the fair value of the residual value of assets belong to the lessee; c) The lessee has
the ability to continue leasing until the next term at a rent far below the market level.

1) Accounting treatment of finance leases

Initial measurement

On the commencement date of the lease term, the Group recognizes the finance lease receivables
for the finance lease and derecognizes the leased asset of the finance lease. It recognizes the net
investment in the lease as the entry value of the finance lease, when initially measuring the finance
lease receivable.

The net investment in the lease is the sum of the net value of the unguaranteed residual value and
the lease receivable not received on the commencement date of the lease term at the interest rate
implicit in lease. Lease collection amount refers to the amount that the lessor should collect from
the lessee for transferring the right to use the leased assets during the lease term, including: a)
Fixed payment amount and substantial fixed payment amount that the lessee needs to pay. If there

202
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

is lease incentive, deduct the amount related to lease incentive; b) The variable lease payment
depending on the index or ratio, which is determined according to the index or ratio on the
commencement date of the lease term at the initial measurement; c) The exercise price of the
purchase option, provided that it is reasonably determined that the lessee will exercise the option;
d) The amount to be paid by the lessee to exercise the option to terminate the lease, provided that
the lease term reflects that the lessee will exercise the option to terminate the lease; e) The residual
value of guarantee provided to the lessor by the lessee, the party related to the lessee and an
independent third party that has the financial ability to fulfill the guarantee obligation.

Follow-up measurement

The Group calculates and confirms the interest income at a fixed periodic rate in each period in the
lease term. Periodic rate refers to the rate of discount implicit in lease adopted to determine the net
investment in the lease (in the case of sublease, if the interest rate implicit in lease of sublease
cannot be determined, the rate of discount implicit in original lease is adopted (adjusted according
to the initial direct expenses related to sublease)), or the revised rate of discount determined in
accordance with the relevant provisions where the change of the finance lease is not accounted for
as a separate lease and meets the condition that the lease will be classified as a finance lease if the
change became effective on the lease commencement date.

Accounting treatment of lease change

If the lease changes and the following conditions are met at the same time, the Group will account
for the lease change as a separate lease: a) The lease change expands the lease scope by increasing
the right to use one or more leased assets; b) The increased consideration is equivalent to the
separate price of the expanded lease scope adjusted according to the contract conditions.

If the change of finance lease is not accounted for as a separate lease, and the condition that the
lease will be classified as an operating lease if the change takes effect on the lease commencement
date is met, the Group will account for it as a new lease from the effective date of the lease change,
and take the net lease investment before the effective date of the lease change as the book value of
the leased asset.

2) Accounting treatment of operating leases

Treatment of rent

The Group recognizes lease receipts from operating leases as rental income on a straight-line basis
during each period of the lease term.

Incentives provided

If the Group provides a rent-free period, it allocates the total rentals over the entire lease term
without deducting the rent-free period by the straight-line method, and also recognizes rental
income during the rent-free period. If certain expenses of the lessee are borne, the Group allocates
the balance of rental income over the lease term after such expenses are deducted from the gross
rental income.

Initial direct cost

203
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Initial direct expenses incurred by the Group in connection with operating leases shall be
capitalized to the cost of the leased underlying asset and recorded in the profits and losses of the
current period in stages over the lease term on the same basis of recognition as rental income.

Depreciation

For the fixed assets in the assets under operating lease, the Group adopts the depreciation policy of
similar assets to calculate and distill depreciation. For other assets under operating lease, the
Group amortizes them in a systematic and reasonable manner.

Variable lease payments

Variable lease payments made by the Group in relation to operating leases that are not included in
the lease receivable are included in the current profit or loss when they are actually incurred.

Change of operating leases

If an operating lease changes, the Group will regard it as a new lease for accounting treatment
from the effective date of the change. The advance receipt or the lease receivable related to the
lease prior to the change is recognized as the payment receivable of the new lease.

37. Changes in Main Accounting Policies and Estimates

(1) Changes of accounting policies

The Ministry of Finance issued the Accounting Standards for Business Enterprises Interpretation
No. 16 (C.K. [2022] No. 31) (hereinafter referred to as "Interpretation No. 16" ) on November 30,
2022, interpretation No. 16 that "accounting treatment that the exemption of initial recognition
shall not apply to the deferred income tax relating to assets and liabilities arising from a single
transaction", which has taken effect on 1 January 2023, with early adoption permitted for
companies from the year of release. The Company has applied this interpretation starting from 1
January 2023.

For taxable temporary differences and deductible temporary differences arising from the lease
liabilities and right-of-use assets recognised based on single transactions that comply with the
above provision, at the period-begin of the earliest period presented in the financial statement that
followed such provision for the first time, the Company will adjust retained income brought
forward in the earliest period presented in the financial statement and other relevant items of the
financial statement based on the figures cumulatively affected in accordance with such provision
and the Accounting Standards for Business Enterprises No. 18 Income Taxes.

In accordance with the relevant provisions of Interpretation No. 16, the names and amounts of the
significantly affected statement items are set forth below:

Item affected 1 January 2023


204
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)


Before Adjustment
After adjustment
adjustment amount

Total assets

Of which: deferred income tax
1,190,454,750.62 6,951,620.03 1,197,406,370.65
assets

Total liabilities

Of which: deferred income tax
89,535,936.97 5,891,361.34 95,427,298.31
liabilities

Total shareholders

Of which: retained earnings 3,637,291,770.33 1,060,258.69 3,638,352,029.02

(2) Changes in Accounting Estimates

No such cases in the Reporting Period.

V. Taxation
1. Main Taxes and Tax Rate

Category of taxes Basis Specific situation of the taxes rate

Calculated the output tax at
the tax rate and paid the VAT
by the amount after deducting
the deductible withholding
VAT VAT at current period, of 1%, 3%, 5%, 6%, 9%, 13%
which the VAT applicable to
easy collection won’t belong
to the deductible withholding
VAT.

Paid at 5% by subsidiaries including:
Dongguan Konka, XingDa HongYe,
Xinfeng Microcrystalline, Boluo Konka
Precision, Boluo Konka, Ningbo
Kanghanrui, Jiangsu Konka Smart, Yibin
Kangrun, Yibin Kangrun Medical, Konka
Urban Huanjia (Henan), Konka Ronghe, Chengdu
The circulating tax actually
maintenance and Anren, Chain Kingdom Semiconductor
paid
construction tax (Shao xing ), Guizhou Kanggui Materials,
Zhe gian g Konka Electronic, Zhe gian g Konka
Technology Industry, Songyang Konka
Intelligent
Paid reduced by half at 7% by subsidiaries
including: Liaoyang Kangshun Renewable,
Zhitong Technology, Yibin Smart,
205
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Category of taxes Basis Specific situation of the taxes rate
Shenzhen Nianhua, Anhui Konka Low
Carbon, Kanghong Xintong
Paid reduced by half at 5% by subsidiaries
including: Jiangkang (Shanghai)
Technology, Guizhou Konka New Material,
Guizhou Konka New Energy
Paid at 1%: Jiangxi Konka, Jiangxi High
Transparent Substrate
Paid at 7%: other subsidiaries.

The circulating tax actually
Education surtax 3%
paid

Local education The circulating tax actually
2%
surtax paid

Enterprise income 25%/ See 2.Tax Preference and Approved
Taxable income
tax Documents for details

The main taxpayers of different corporate income tax rates are explained as follows:

Name of entity Income tax rate

Electronics Technology, Anhui Konka, Anhui
Tong giường, Shanxi Konka, Jiangsu Konka,
XingDa HongYe, Xinfeng Microcrystalline, Boluo 15%
Precision, Kowin Memory (Shenzhen), Xiaojia
Technology

Hong Kong Konka, Hongdin Trading, Jiali
International, Hongjet, Jiaxin Technology, Hongdin
16.5%
Invest, Konka Mobility, Kowin Memory (Hong
Kong)

Chain Kingdom Memory Technologies 16.5%

Konka Europe 15%

Kanghao Technology 22.5%

Konka North America 21%

The Company as the Parent and other subsidiaries 25%

Note: According to regulations of Temporary Provisions of Income Tax of Trans-boundary Tax
Payment Enterprises by State Administration of Taxation, resident enterprises without business
establishment or places of legal persons should be tax payment enterprises with the administrative
measures of income tax of “unified computing, level-to-level administration, local prepayment,
206
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

liquidation summary, and finance transfer”. It came into force from 1 January 2008. According to
the above methods, the Company’s sales branch companies in each area will hand in the corporate
income taxes in advance from 1 January 2008 and will be final settled uniformly by the Company
at the year-end.

2. Tax Preference and Approved Documents

(1) According to the announcement of the State Administration of Taxation No. 12 of 2023: Small
enterprises with small profits shall reduce the taxable income amount by 25% and pay the
corporate income tax at the tax rate of 20%, which shall be continued until 31 December 2027.
(2) On 18 October 2022, Anhui Konka, a subsidiary of the Company, obtained the Certificate of
High-Tech Enterprise jointly issued by the Department of Science and Technology of Anhui
Province, the Department of Finance of Anhui Province and the Taxation Bureau of Anhui
Province of the State Administration of Taxation, with the certificate number GR202234002272,
which is valid for three years. In accordance with the relevant tax regulations, Anhui Konka is
entitled to the relevant tax incentives for three consecutive years from 2022 to 2024 to enjoy the
relevant tax preferential policies on high-tech enterprises and pay enterprise income tax at a
preferential tax rate of 15%.

(3) On 4 November 2022, Xinfeng Microcrystalline, a subsidiary of the Company, obtained the
Certificate of High-Tech Enterprise jointly issued by the Department of Science and Technology
of Jiangxi Province, the Department of Finance of Jiangxi Province and the Taxation Bureau of
Jiangxi Province of the State Administration of Taxation, with the certificate number
GR202236000999, which is valid for three years. According to the relevant tax regulations,
Xinfeng Microcrystalline is entitled to the relevant tax incentives for three consecutive years from
2022 to 2024 to enjoy the relevant tax preferential policies on high-tech enterprises and pay
enterprise income tax at a preferential tax rate of 15%.

(4) On 18 October 2022, Anhui Tong giường, a subsidiary of the Company, obtained the
Certificate of High-Tech Enterprise jointly issued by the Department of Science and Technology
of Anhui Province, the Department of Finance of Anhui Province and the Taxation Bureau of
Anhui Province of the State Administration of Taxation, with the certificate number
GR202234000798, which is valid for three years. In accordance with the relevant tax regulations,
Anhui Tong giường is entitled to the relevant tax incentives for three consecutive years from 2022
to 2024 to enjoy the relevant tax preferential policies on high-tech enterprises and pay enterprise
income tax at a preferential tax rate of 15%.

(5) On 22 December 2022, Boluo Precision, a subsidiary of the Company, obtained the "High-tech
Enterprise Certificate" jointly issued by Department of Science and Technology of Guangdong
Province, Department of Finance of Guangdong Province and Guangdong Provincial Tax Service
of State Taxation Administration (No. GR202244017658), which will be valid for three years.
According to relevant tax regulations, Boluo Precision enjoys relevant preferential tax policies for
high-tech enterprises for three consecutive years from 2022 to 2024, and pays enterprise income
tax at a reduced rate of 15%.

207
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

(6) On 19 December 2022, Electronic Technology, a subsidiary of the Company, received the
Certificate of High-Tech Enterprise jointly issued by Shenzhen Science and Technology
Innovation Committee, Shenzhen Finance Bureau and Shenzhen Taxation Bureau of the State
Administration of Taxation, with the certificate number GR202244205867, which is valid for
three years. In accordance with the relevant tax regulations, Electronic Technology is entitled to
the relevant tax incentives for three consecutive years from 2022 to 2024 to enjoy the relevant tax
preferential policies on high-tech enterprises and pay enterprise income tax at a preferential tax
rate of 15%.

(7) On 20 December 2021, XingDa HongYe, a subsidiary of the Company, obtained the "High-
tech Enterprise Certificate" jointly issued by Department of Science and Technology of
Guangdong Province, Department of Finance of Guangdong Province and Guangdong Provincial
Tax Service of State Taxation Administration (No. GR202144002737), which will be valid for
three years. According to relevant tax regulations, XingDa HongYe enjoys relevant preferential
tax policies for high-tech enterprises for three consecutive years from 2021 to 2023, and pays
enterprise income tax at a reduced rate of 15%.

(8) On 23 December 2021, Kowin Memory (Shenzhen), a subsidiary of the Company, received the
Certificate of High-Tech Enterprise jointly issued by Shenzhen Science and Technology
Innovation Committee, Shenzhen Finance Bureau and Shenzhen Taxation Bureau of the State
Administration of Taxation, with the certificate number GR202144206630, which is valid for
three years. In accordance with the relevant tax regulations, Kowin Memory (Shenzhen) is entitled
to the relevant tax incentives for three consecutive years from 2021 to 2023 to enjoy the relevant
tax preferential policies on high-tech enterprises and pay enterprise income tax at a preferential tax
rate of 15%.

(9) On 19 December 2022, Xiaojia Technology, a subsidiary of the Company, received the
Certificate of High-Tech Enterprise jointly issued by Shenzhen Science and Technology
Innovation Committee, Shenzhen Finance Bureau and Shenzhen Taxation Bureau of the State
Administration of Taxation, with the certificate number GR202244203274, which is valid for
three years. In accordance with the relevant tax regulations, Xiaojia Technology is entitled to the
relevant tax incentives for three consecutive years from 2022 to 2024 to enjoy the relevant tax
preferential policies on high-tech enterprises and pay enterprise income tax at a preferential tax
rate of 15%.

(10) On 29 November 2023, Shanxi Konka, a subsidiary of the Company, obtained the "High-tech
Enterprise Certificate" jointly issued by Department of Science and Technology of Shanxi
Province, Department of Finance of Shanxi Province and Shanxi Provincial Tax Service of State
Taxation Administration (No. GR202361002167), which will be valid for three years. According
to relevant tax regulations, Shanxi Konka enjoys relevant preferential tax policies for high-tech
enterprises for three consecutive years from 2023 to 2025, and pays enterprise income tax at a
reduced rate of 15%.

(11) On 6 November 2023, Jiangsu Konka, a subsidiary of the Company, obtained the "High-tech
Enterprise Certificate" jointly issued by Department of Science and Technology of Jiangsu
Province, Department of Finance of Jiangsu Province and Jiangsu Provincial Tax Service of State
208
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Taxation Administration (No. GR202332008044), which will be valid for three years. According
to relevant tax regulations, Shanxi Konka enjoys relevant preferential tax policies for high-tech
enterprises for three consecutive years from 2023 to 2025, and pays enterprise income tax at a
reduced rate of 15%.

(12) In accordance with the Announcement on the Renewal of the Enterprise Income Tax Policy
for Western Development Enterprises (Ministry of Finance, General Administration of Taxation,
National Development and Reform Commission Announcement No. 23 of 2020), an enterprise
established in the western region who is mainly engaged in an industry specified in the Catalogue
of Encouraged Industries in the Western Region and whose main business income accounts for
over 60% of its gross income in the current year, is entitled to a reduced corporate income tax rate
of 15%. Chengdu Konka Electronic, a subsidiary of the Company, is eligible for this preferential
tax policy.

(13) According to the fiscal and taxation document [2011] No. 100 published by the Ministry of
Finance and the State Administration of Taxation, for the VAT general taxpayers who sell their
self-developed and produced software products, the VAT shall be levied at the rate of 13%, and
then the part that the actual tax burden on their VAT exceeds 3 will be implemented with the
policy of immediate withdrawal. The Company’s subsidiaries, Electronics Technology and Anhui
Tong giường all enjoy this preferential policy.


VI. Notes to Major Items in the Consolidated Financial Statements of the
Company
Unless otherwise noted, for the financial statement data disclosed below, "beginning of the year" 
refers to 1 January 2023, "end of the year" refers to 31 December 2023, "the current year" refers to
the period from 1 January 2023 to 31 December 2023 and "last year" refers to the period from 1
January 2022 to 31 December 2022. The monetary unit is renminbi.
1. Monetary assets

Item Closing balance Opening balance

Cash on hand 469.28 14.78

Bank deposits 5,892,986,243.07 5,473,400,175.52

Other monetary assets 613,372,864.67 514,695,300.41

Total 6,506,359,577.02 5,988,095,490.71

Of which: Total amount deposited overseas 55,324,772.13 137,008,617.40

Note: The closing balance of other monetary funds is mainly the balance of time deposits, margin
deposits and account balance on WeChat, Alipay and other platforms. For details of restricted
funds, please refer to Note VI-25 Assets with restricted ownership or use right.
2. Held-for-trading financial assets

Item Closing balance Opening balance

Financial assets at fair value through profit or loss 469,636,700.78


209
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Including: Investment in equity instruments 469,636,700.78

Total 469,636,700.78

3. Notes receivable
( 1 ) Classified presentation of notes receivable

Item Closing balance Opening balance

Banker's acceptance 517,759,367.29 709,558,838.75

Commercial acceptance draft 15,412,581.86 350,178,404.79

Total 533,171,949.15 1,059,737,243.54

( 2 ) Listed by withdrawal methods for provision for bad debts

Closing balance

Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)

Provision set aside for
bad debts by the single
item

Provision set aside for
533,492,913.47 100.00 320,964.32 0.06 533,171,949.15
bad debts by portfolio

Of which: Banker's
517,759,367.29 97.05 517,759,367.29
acceptance

Commercial acceptance
15,733,546.18 2.95 320,964.32 2.04 15,412,581.86
draft

Total 533,492,913.47 100.00 320,964.32 0.06 533,171,949.15

(Continued)

Opening balance

Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
Provision set aside for bad
debts by the single item
Provision set aside for
1,067,029,648.07 100.00 7,292,404.53 0.68 1,059,737,243.54
bad debts by portfolio
Of which: Banker's
709,558,838.75 66.50 709,558,838.75
acceptance

210
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Commercial acceptance
357,470,809.32 33.50 7,292,404.53 2.04 350,178,404.79
draft
Total 1,067,029,648.07 100.00 7,292,404.53 0.68 1,059,737,243.54


Provision for expected credit losses on commercial acceptance draft based on aging in the
portfolio

Closing balance
Name
Provision
Book balance Provision for bad debts
percentage (%)

Within one year 15,733,546.18 320,964.32 2.04

Total 15,733,546.18 320,964.32 2.04

( 3 ) Provision for bad debts of notes receivable set aside, recovered or reclassified in the
current year

Change in the current year
Opening Closing
Category
balance Recovery or Charge-off balance
Provision Others
reclassification or write-off

Commercial
7,292,404.53 357,873.71 7,329,313.92 320,964.32
acceptance draft

Banker's
acceptance

Total 7,292,404.53 357,873.71 7,329,313.92 320,964.32

( 4 ) Notes receivable pledged at the end of the year

Item Amount pledged at the end of the year

Banker's acceptance 209,288,446.67

Commercial acceptance draft

Total 209,288,446.67

( 5 ) Notes receivable endorsed or discounted but had not yet matured on the balance sheet
date at the end of the year

Amount derecognised at the end Amount not derecognised at the
Item
of the year end of the year

Banker's acceptance 1,076,672,657.07

Commercial acceptance draft 11,524,075.93

Total 1,076,672,657.07 11,524,075.93



211
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

( 6 ) Notes receivable actually written off in the current year
There were no significant write-offs of notes receivable in the current year.
4.Accounts receivable
( 1 ) Accounts receivable listed by aging portfolio

Book balance at the beginning of
Aging Book balance at the end of the year
the year

Within one year (inclusive) 1,489,573,102.24 1,708,338,208.62

One to two years 152,217,296.67 163,165,760.88

Two to three years 131,889,796.60 267,210,849.90

Three to four years 265,897,663.73 671,539,902.08

Four to five years 674,517,508.86 692,197,002.61

Over five years 894,028,569.23 206,463,164.65

Total 3,608,123,937.33 3,708,914,888.74

( 2 ) Accounts receivable listed by withdrawal methods for bad debts

Closing balance

Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)

Provision set
aside for bad
1,601,967,285.04 44.40 1,524,090,371.01 95.14 77,876,914.03
debts by the
single item

Provision set
aside for bad
debts by portfolio

Of which: Aging
2,006,156,652.29 55.60 357,487,593.24 17.82 1,648,669,059.05
portfolio

Subtotal of
2,006,156,652.29 55.60 357,487,593.24 17.82 1,648,669,059.05
portfolio

Total 3,608,123,937.33 100.00 1,881,577,964.25 52.15 1,726,545,973.08

(Continued)

Opening balance
Category
Book balance Provision for bad debts Carrying value




212
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Provision
Proportion
Amount Amount percentage
(%)
(%)

Provision set
aside for bad
1,487,466,561.80 40.11 1,350,460,284.27 90.79 137,006,277.53
debts by the
single item

Provision set
aside for bad
debts by
portfolio

Of which:
2,221,448,326.94 59.89 321,719,768.25 14.48 1,899,728,558.69
Aging portfolio

Subtotal of
2,221,448,326.94 59.89 321,719,768.25 14.48 1,899,728,558.69
portfolio

Total 3,708,914,888.74 100.00 1,672,180,052.52 45.09 2,036,734,836.22

1 ) Provision set aside for bad debts of accounts receivable by single item

Opening balance Closing balance

Name Provision Reasons
Provision for bad Provision for bad
Book balance Book balance percentage for the
debts debts
(%) provision

Shanghai
Huaxin Expected to
International 299,136,676.70 293,153,943.17 299,136,676.70 293,153,943.17 98.00 be difficult
Group Co., to recover
Ltd.

Hongtu
Sanbao High- Expected to
tech 200,000,000.00 160,000,000.00 200,000,000.00 180,000,000.00 90.00 be difficult
Technology to recover
Co., Ltd.

Shenzhen Not
Yaode expected to
143,135,135.62 121,664,865.28 145,562,210.29 145,562,210.29 100.00
Technology be
Co., Ltd. recoverable

Guangan
Ouqishi Expected to
Electronic 113,230,553.53 110,965,942.46 113,140,553.53 110,965,942.46 98.08 be difficult
Technology to recover
Co., Ltd.

Guangxi BG
Expected to
New
83,396,556.37 81,728,625.24 83,396,556.37 81,728,625.24 98.00 be difficult
Materials Co.,
to recover
Ltd.

Zhongfu Expected to
Tiangong 71,589,096.65 53,691,822.49 71,389,096.65 53,541,822.49 75.00 be difficult
Construction to recover
Group Co.,

213
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Opening balance Closing balance

Name Provision Reasons
Provision for bad Provision for bad
Book balance Book balance percentage for the
debts debts
(%) provision
Ltd.


Gome
Customization Not
(Tianjin) expected to
59,569,295.02 35,741,577.01 59,569,295.02 59,569,295.02 100.00
Home be
Appliances recoverable
Co., Ltd.

CCCC First Not
Harbor expected to
65,221,300.00 65,221,300.00 55,438,105.00 55,438,105.00 100.00
Engineering be
Company Ltd. recoverable

Not
Xingda
expected to
Hongye (Hk) 51,902,301.95 51,902,301.95 51,902,301.95 51,902,301.95 100.00
be
Limited
recoverable

Not
China Energy
expected to
Electric Fuel 50,000,000.00 50,000,000.00 50,000,000.00 50,000,000.00 100.00
be
Co., Ltd.
recoverable

Expected to
Others 350,285,645.96 326,389,906.67 472,432,489.53 442,228,125.39 93.61 be difficult
to recover


Total 1,487,466,561.80 1,350,460,284.27 1,601,967,285.04 1,524,090,371.01



2 ) Provision set aside for bad debts of accounts receivable by portfolio

Closing balance
Aging
Provision for bad Provision percentage
Book balance
debts (%)

Within one year 1,454,252,297.12 29,667,135.82 2.04

One to two years 91,446,278.07 9,162,526.34 10.02

Two to three years 107,199,985.50 24,323,676.70 22.69

Three to four years 167,778,579.76 108,854,742.54 64.88

Four to five years 34,866,178.32 34,866,178.32 100.00

Over five years 150,613,333.52 150,613,333.52 100.00

Total 2,006,156,652.29 357,487,593.24 17.82


( 3 ) Provision for bad debts of accounts receivable set aside, recovered or reclassified in
the current year
214
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Change in the current year
Category Opening balance
Recovery or
Provision
reclassification

Provision for bad debts
1,672,180,052.52 231,993,028.00 22,759,281.37
of accounts receivable

Total 1,672,180,052.52 231,993,028.00 22,759,281.37

(Continued)

Change in the current year
Category Closing balance
Decrease for other
Charge-off or write-off
reasons

Provision for bad debts
1,527,689.87 -1,691,854.97 1,881,577,964.25
of accounts receivable

Total 1,527,689.87 -1,691,854.97 1,881,577,964.25

Note: Decreases for other reasons were RMB-2,671,676.56 due to exchange rate changes in the
current year and the decrease by RMB979,821.59 due to the loss of controlling right.
( 4 ) Accounts receivable actually written off in the current year

Item Amount written off

Accounts receivable written off 1,527,689.87

( 5 ) Top five accounts receivable and contract assets in the closing balance categorised by
debtors
The total amount of accounts receivable with top five closing balance categorised by debtors in the
current year was RMB1,270,247,243.45, accounting for 35.21% of the total closing balance of
accounts receivable. The total closing balance of provision for bad debts correspondingly set aside
was RMB645,731,486.43.
5.Contract assets
( 1 ) Contract assets

Closing balance Opening balance

Item Provision Provision
Book Carrying
Book balance for bad Carrying value for bad
balance value
debts debts

Warranty 2,236,000.34 45,614.41 2,190,385.93

Total 2,236,000.34 45,614.41 2,190,385.93

( 2 ) Classified presentation of contract assets by provisioning methods of bad debts

Category Closing balance



215
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Book balance Provision for bad debts
Carrying
Proportion Provision value
Amount Amount
(%) percentage (%)

Provision set aside for
bad debts by the single
item

Provision set aside for
bad debts by portfolio

Of which: Aging
2,236,000.34 100.00 45,614.41 2.04 2,190,385.93
portfolio

Subtotal of portfolio 2,236,000.34 100.00 45,614.41 2.04 2,190,385.93

Total 2,236,000.34 100.00 45,614.41 2.04 2,190,385.93

( 3 ) Provision set aside for bad debts of contract assets by portfolio

Closing balance
Aging
Provision
Book balance Provision for bad debts
percentage (%)

Within one year 2,236,000.34 45,614.41 2.04

Total 2,236,000.34 45,614.41

( 4 ) Provision for bad debts of contract assets set aside, recovered or reclassified in the
current year

Recovery or
Provision in the Charge-off/Write-off
Item reclassification in the Reasons
current year in the current year
current year

Warranty 54,626.97 9,012.56 Normal provision

Total 54,626.97 9,012.56


( 5 ) Contract assets actually written off in the current year
There were no contract assets actually written off in the current year.
6.Accounts receivable financing

Item Closing balance Opening balance

Notes receivable 173,396,326.14 237,187,228.44

Total 173,396,326.14 237,187,228.44

7.Other accounts receivable

Item Closing balance Opening balance

Interest receivable 6,681,258.01 3,878,580.64



216
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Item Closing balance Opening balance

Dividends receivable 941,482.38 272,999.43

Other accounts receivable 981,498,327.12 1,437,973,265.51

Total 989,121,067.51 1,442,124,845.58

7.1 Interest receivable

Item Closing balance Opening balance

Interest on term deposits 6,681,258.01 3,878,580.64

Total 6,681,258.01 3,878,580.64

7.2 Dividends receivable
( 1 ) Category of dividends receivable

Item (or investee) Closing balance Opening balance

Chongqing Qingjia Electronics Co.,
272,999.43
Ltd.

Shenzhen Jielunte Technology Co.,
941,482.38
Ltd.

Total 941,482.38 272,999.43

7.3 Other receivables
( 1 ) Classified by account nature

Book balance at the end of the Book balance at the beginning
Nature of fund
year of the year

Deposit and margin 1,234,840,210.69 1,411,807,968.60

Intercourse funds among minority
shareholders in the business consolidation
179,663,586.05 176,571,471.89
not under the same control and related
parties

Energy-saving subsidies receivable 152,399,342.00 152,399,342.00

Others 1,496,129,924.02 1,523,970,760.63

Total 3,063,033,062.76 3,264,749,543.12

( 2 ) Other receivables listed by aging

Book balance at the end of the Book balance at the beginning of
Aging
year the year

Within one year 253,550,068.51 531,774,524.39


217
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

One to two years 77,519,916.42 551,601,162.73

Two to three years 551,521,166.18 688,602,155.02

Three to four years 690,507,047.29 1,096,771,140.67

Four to five years 1,092,957,617.71 201,058,646.10

Over five years 396,977,246.65 194,941,914.21

Total 3,063,033,062.76 3,264,749,543.12


( 3 ) Classified presentation of other receivables by provisioning methods of bad debts

Closing balance

Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)

Other receivables of
expected credit
1,960,682,465.29 64.01 1,644,122,039.53 83.85 316,560,425.76
losses set aside by
single item

Other receivables of
provision for bad
debts set aside by
credit risk
characteristic
portfolio:

Of which: Aging
975,322,848.99 31.84 413,933,906.39 42.44 561,388,942.60
portfolio

Low-risk portfolio 127,027,748.48 4.15 23,478,789.72 18.48 103,548,958.76

Subtotal of portfolio 1,102,350,597.47 35.99 437,412,696.11 39.68 664,937,901.36

Total 3,063,033,062.76 100.00 2,081,534,735.64 67.96 981,498,327.12


(Continued)

Opening balance

Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)

Other receivables
of expected credit
1,461,191,467.51 44.76 1,437,476,408.89 98.38 23,715,058.62
losses set aside by
single item

Other receivables
of provision for
bad debts set aside
by credit risk
characteristic
218
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Opening balance

Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
portfolio:

Of which: Aging
1,342,397,234.31 41.12 372,315,645.78 27.74 970,081,588.53
portfolio

Low-risk portfolio 461,160,841.30 14.12 16,984,222.94 3.68 444,176,618.36

Subtotal of
1,803,558,075.61 55.24 389,299,868.72 21.59 1,414,258,206.89
portfolio

Total 3,264,749,543.12 100.00 1,826,776,277.61 55.95 1,437,973,265.51

1 ) Provision set aside for bad debts of other receivables by portfolio

Closing balance
Aging
Provision for bad Provision percentage
Book balance
debts (%)

Within one year 79,420,865.29 1,443,228.60 1.82

One to two years 73,767,052.51 2,611,493.16 3.54

Two to three years 532,898,477.68 120,262,928.40 22.57

Three to four years 255,310,443.57 163,102,411.35 63.88

Four to five years 43,789,758.21 32,828,634.39 74.97

Over five years 117,164,000.21 117,164,000.21 100.00

Total 1,102,350,597.47 437,412,696.11 39.68

2 ) Provision set aside for bad debts of other receivables by the general expected credit
loss model

Phase I Phase II Phase III

Expected credit
Provision for bad Expected credit loss
loss during the Total
debts Expected credit during the whole
whole outstanding
loss for the outstanding
maturity (with
next 12 months maturity (without
credit
credit impairment)
impairment)

Balance as of 1 January
6,475,374.50 382,824,494.22 1,437,476,408.89 1,826,776,277.61
2023


Balance as of 1 January -796,704.84 -43,713,266.78 44,509,971.62

219
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)


Phase I Phase II Phase III

Expected credit
Provision for bad Expected credit loss
loss during the Total
debts Expected credit during the whole
whole outstanding
loss for the outstanding
maturity (with
next 12 months maturity (without
credit
credit impairment)
impairment)
2023 in the current year


-- Transferred to Phase II -796,704.84 796,704.84

-- Transferred to Phase III -44,509,971.62 44,509,971.62

-- Reclassified under
Phase II

-- Reclassified under
Phase I

Provision in the current
1,443,552.70 121,048,531.32 161,917,015.87 284,409,099.89
year

Recovery in the current
5,678,993.76 24,071,209.19 318,202.52 30,068,405.47
year

Charge-off in the current
year

Write-off in the current
68,817.68 68,817.68
year

Other changes -50,264.38 536,845.67 486,581.29

Balance as at 31
1,443,228.60 435,969,467.51 1,644,122,039.53 2,081,534,735.64
December 2023


Note: The first stage is that credit risk has not increased significantly since initial recognition. For
other receivables with an aging portfolio and a low-risk portfolio within one year, the loss
provision is measured according to the expected credit losses in the next 12 months.
The second stage is that credit risk has increased significantly since initial recognition but credit
impairment has not yet occurred. For other receivables with an aging portfolio and a low-risk
portfolio that exceed one year, the loss provision is measured based on the expected credit losses
for the entire duration.
The third stage is the credit impairment after initial confirmation. For other receivables of credit
impairment that have occurred, the loss provision is measured according to the credit losses that
have occurred throughout the duration.
Provision for bad debts of other receivables set aside, recovered or reclassified in the current
year

Opening
Category Change in the current year Closing balance
balance




220
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Charge-off
Recovery or
Provision or write- Others
reclassification
off

Provision
for bad
debts of 1,826,776,277.61 284,409,099.89 30,068,405.47 68,817.68 -486,581.29 2,081,534,735.64
other
receivables


Total 1,826,776,277.61 284,409,099.89 30,068,405.47 68,817.68 -486,581.29 2,081,534,735.64


Note: Decreases for other reasons were RMB-490,091.29 due to exchange rate changes and the
decrease by RMB3,510 due to the loss of controlling right.
( 5 ) Other receivables actually written off in the current year

Item Amount written off

Other accounts receivable written off 68,817.68

( 6 ) Other receivables with top five year-end balances categorised by debtors
The total amount of other receivables with top five closing balance categorised by debtors in the
current year was RMB1,370,349,125.97, accounting for 44.74% of the total closing balance of
other receivables. The total closing balance of provision for bad debts correspondingly set aside
was RMB746,602,773.17.
8.Prepayments
( 1 ) Age of prepayments

Closing balance Opening balance
Item
Amount Proportion (%) Amount Proportion (%)

Within one year 114,332,392.60 69.10 332,218,631.50 85.20

One to two years 827,985.04 0.50 52,945,431.22 13.58

Two to three years 46,545,996.66 28.13 4,191,405.92 1.07

Over three years 3,747,937.21 2.27 592,183.75 0.15

Total 165,454,311.51 100.00 389,947,652.39 100.00

Note: The amount of advanced payments aged over one year at the end of the period is
RMB51,121,918.91, accounting for 30.90% of the total balance of advanced payments of the
Company, and consists mainly of unsettled payments.
( 2 ) Top five prepayments in the closing balance categorised by payees
The total amount of prepayments with top five closing balance categorised by payees was
RMB100,270,755.74, accounting for 60.60% of the total closing balance of prepayments.




221
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

9.Inventory
( 1 ) Inventory classification

Closing balance

Provision for
Item inventory
Book balance impairment/for Carrying value
contract fulfilment
cost impairment

Raw materials 593,131,602.70 86,829,664.81 506,301,937.89

Semi-finished products 96,408,258.96 41,741,196.19 54,667,062.77

Commodities in stock 2,636,678,840.40 490,032,803.73 2,146,646,036.67

Commissioned products 1,934,264.95 211,225.91 1,723,039.04

Contract fulfilment costs

Development costs 540,559,624.61 540,559,624.61

Total 3,868,712,591.62 618,814,890.64 3,249,897,700.98

(Continued)

Opening balance

Provision for
Item inventory
Book balance impairment/for Carrying value
contract fulfilment
cost impairment

Raw materials 1,168,223,234.28 64,695,751.94 1,103,527,482.34

Semi-finished products 145,186,803.18 37,339,815.90 107,846,987.28

Commodities in stock 3,316,097,782.82 270,664,206.34 3,045,433,576.48

Commissioned products 2,862,799.75 2,862,799.75

Contract fulfilment costs 254,159.33 254,159.33

Development costs 149,842,751.04 149,842,751.04

Total 4,782,467,530.40 372,699,774.18 4,409,767,756.22

( 2 ) Inventory falling price reserves and impairment provision of contract performance
costs

Increase in the current year
Item Opening balance
Withdrawal Others


222
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Increase in the current year
Item Opening balance
Withdrawal Others

Raw materials 64,695,751.94 34,137,020.94

Semi-finished products 37,339,815.90 7,240,010.26

Commodities in stock 270,664,206.34 330,144,533.95

Commissioned products 212,034.71

Total 372,699,774.18 371,733,599.86

(Continued)

Decrease in the current year
Item Closing balance
Write-off Others

Raw materials 12,546,636.83 -543,528.76 86,829,664.82

Semi-finished products 2,838,629.97 41,741,204.42

Commodities in stock 110,287,169.31 488,767.25 490,032,795.49

Commissioned products 808.80 211,225.91

Total 125,672,436.11 -53,952.71 618,814,890.64

Specific basis for determining the realisable net value and reasons for inventory falling price
reserves and impairment provision for contract performance costs transferred back or written off
during the Reporting Period:

Reasons for charge-off of provision
Specific basis for withdrawal of
Item for inventories impairment in the
inventory falling price reserves
current year

The realisable net value was lower than They have been sold or used in the
Raw materials
the carrying value current year

The realisable net value was lower than They have been sold or used in the
Semi-finished products
the carrying value current year

The realisable net value was lower than They have been sold in the current
Commodities in stock
the carrying value year

10.Current portion of non-current assets

Item Closing balance Opening balance Nature

Long-term receivables due
14,630,000.00 Finance lease payment
within one year

Total 14,630,000.00


223
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

11.Other current assets

Item Closing balance Opening balance

Principal and interests of
entrusted loans to associated 1,744,123,316.97 1,544,592,633.44
enterprises

Prepayments and deductible
taxes, and refund of tax for 569,875,346.61 457,991,464.58
export receivable

Deferred expenses 28,112,001.12 17,278,894.58

Costs receivable for returning
15,925,346.67 14,214,651.96
goods

Others 1,123,457.38 4,763,581.27

Total 2,359,159,468.75 2,038,841,225.83

12.Long-term receivables

Closing balance

Item Provision
Book balance for bad Carrying value
debts
Finance lease payment

Including: Unrealised financing income

Cash deposits of long-term receivables

Long-term receivables from franchise items
Less: Long-term receivables due within one year
(See Note Vi-10 for details)
Total

(Continued)

Opening balance

Item Provision
Book balance for bad Carrying value
debts

Finance lease payment

Including: Unrealised financing income

Cash deposits of long-term receivables 15,430,400.00 15,430,400.00

Long-term receivables from franchise items

Less: Long-term receivables due within one year
14,630,000.00 14,630,000.00
(See Note Vi-10 for details)


224
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Opening balance

Item Provision
Book balance for bad Carrying value
debts

Total 800,400.00 800,400.00




225
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
13.Long-term equity investment

Changes in the current year

Investee Opening balance Profit or loss of Changes in other
Increase in the Decrease in the Cost method to equity
investment recognised comprehensive
investment investment method
by the equity method income

Konka Ventures Development (Shenzhen)
Co., Ltd. (formerly known as "Konka
4,963,158.89 41,420.73
Ventures Development (Shenzhen) Co.,
Ltd." )

Nanjing Zhihuiguang Information
1,686,591.04 332,696.32
Technology Research Institute Co., Ltd.

Feidi Technology (Shenzhen) Co., Ltd. 10,591,603.87 115,303.85

Shenzhen Kangyue Enterprise Co., Ltd. 32,232,415.88 -7,255,087.00

Foshan Zhu gian g Media Creative Park
2,834,367.04 -2,834,367.04
Cultural Development Co., Ltd.

Kangkai Technology Service (Chengdu)
209,048.32 -94,854.53
Co., Ltd.

Pu giường Jiakang Technology Co, Ltd. 3,658,484.71 57,790.00

Chongqing Qingjia Electronics Co., Ltd. 5,831,185.33 5,831,185.33

Shenzhen Jielunte Technology Co., Ltd. 99,748,594.97 -3,889,533.49

Panxu Intelligence Co., Ltd. 51,392,171.46 -2,410,150.21 -295,544.14

Orient Excellent (Zhuhai) Asset 7,482,864.06 1,115,710.93


226
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Changes in the current year

Investee Opening balance Profit or loss of Changes in other
Increase in the Decrease in the Cost method to equity
investment recognised comprehensive
investment investment method
by the equity method income
Management Co., Ltd.

Dongfang Jiakang No.1 (Zhuhai) Private
Equity Investment Fund (LP) (formerly:
483,905,786.35 161,022,858.56 15,206,372.63
Dongfang Konka No. 1 (Zhuhai) Private
Equity Investment Fund (LP))

Tongxiang Wuzhen Kunyu Venture Capital
Investment Co., Ltd. (formerly: Tongxiang
3,527,761.64 -3,724.56
Wuzhen Kunyu Equity Investment Co.,
Ltd.)

Shenzhen RF-Llink Technology Co., Ltd.

Anhui Kaikai Shijie E-commerce Co., Ltd. 418,721,305.96 93,109.02

Kunshan Kangsheng Investment
313,484,693.57 -52,251,209.71
Development Co., Ltd.

Chutian Dragon Co., Ltd. 523,726,463.18 109,831,325.31

Shanxi Silk Road Cloud Intelligent Tech
13,333,698.78 -8,144,973.65 -1,136.65
Co., Ltd.

Shenzhen Kanghong xing Intelligent
Technology Co., Ltd.

Shenzhen Zhongkang Beidou Technology
Co., Ltd. (formerly named: Shenzhen


227
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Changes in the current year

Investee Opening balance Profit or loss of Changes in other
Increase in the Decrease in the Cost method to equity
investment recognised comprehensive
investment investment method
by the equity method income
Zhongbing Konka Technology Co., Ltd.)

Shenzhen Yaode Technology Co., Ltd.

Wuhan Tianyuan Environmental Protection
352,295,640.91 35,840,487.27
Co., Ltd.

Chuzhou Konka Technology Industry
49,658,397.02 -10,322,848.45
Development Co., Ltd.

Chuzhou Kangjin Health Industrial
275,858,698.37 -36,821,079.39
Development Co., Ltd.

Nantong Kang gian Technology Industrial
107,310,029.86
Park Operations and Management Co., Ltd.

Chuzhou Kangxin Health Industry
183,310,823.25 -2,558,013.46
Development Co., Ltd.

Dongguan Guankang Yuhong Investment
521,341,722.37 -19,932,783.45
Co., Ltd.

Shenzhen Morsemi Semiconductor
Technology Co., Ltd.

Shandong Econ Technology Co., Ltd. 1,246,099,855.22 -29,643,085.83

Dongguan Kangjia New Materials
6,951,651.72 -93,956.95
Technology Co., Ltd..

228
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Changes in the current year

Investee Opening balance Profit or loss of Changes in other
Increase in the Decrease in the Cost method to equity
investment recognised comprehensive
investment investment method
by the equity method income

Chongqing E2info Technology Co., Ltd. 1,023,251,062.59 31,709,517.46

Yantai Kangyun Industrial Development
72,320,476.84 -6,436,090.68
Co., Ltd.

E3info (Hainan) Technology Co., Ltd. 30,708,255.04 7,423.93

Shenzhen Kangjia Jiapin Intelligent
5,371,364.87 1,719,225.60
Electrical Apparatus Technology Co., Ltd.

Shenzhen KONKA E-display Co., Ltd. 82,221,081.72 2,827,700.92 8,655.99

Chongqing Yuanlv Benpao Real Estate
33,721,573.96 -5,631,658.14
Co., Ltd.

Shenzhen Kangpeng Digital Technology
3,411,153.10 -1,641,132.09
Co., Ltd.

Yantai Kangtang Construction
232,597.64 629,796.43
Development Co., Ltd.

Dongguan Konka Smart Electronic
23,998,624.46 125,519.24
Technology Co., Ltd.

Guangdong Fanzhou Information
Technology Co., Ltd. (formerly: Sichuan 121,403.90 121,403.90
Huayi Jiakang Technology Co., Ltd.)

Shenzhen Aimijiakang Technology Co., 1,585,761.09 -411,890.52

229
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Changes in the current year

Investee Opening balance Profit or loss of Changes in other
Increase in the Decrease in the Cost method to equity
investment recognised comprehensive
investment investment method
by the equity method income
Ltd. (formerly: Sichuan Aimijiakang
Technology Co., Ltd.)

Beijing Konka Jingyuan Technology Co.,
733,832.84 -30,129.42
Ltd.

Chongqing Liangshan Enterprise
121,802.33 56,566.20
Management Co., Ltd.

Shenzhen Kangxi Technology Innovation
967,323.92 58,982.15
Development Co., Ltd.

Shandong Kangfei Intelligent Electrical
1,373,981.26 -1,128,069.63
Appliances Co., Ltd.

Henan Kangfei Intelligent Electric
1,182,963.46 756,730.88
Appliance Co., Ltd.

Guangdong Kangyuan Semiconductor Co.,
12,777,082.28 -2,941,875.24
Ltd.

Chongqing Kangyiqing Technology Co.,
1,010,683.91 -376,964.82
Ltd.

Shenzhen Kangying Semiconductor
13,254,520.44 -10,884,240.61 116,614.86
Technology Co., Ltd.

KK Smartech Limited 1,641,595.45 -29,444.89

Chongqing Kang gian Photoelectric 11,493,032.21 -3,163,900.43

230
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Changes in the current year

Investee Opening balance Profit or loss of Changes in other
Increase in the Decrease in the Cost method to equity
investment recognised comprehensive
investment investment method
by the equity method income
Technology Co., Ltd.

Anhui Kangta Supply Chain
18,060,000.00 -803,400.15
Management Co., Ltd.

Wuhan Kangtang Information Technology
26,654,950.30 -897,727.70
Co., Ltd.

Sichuan Chengrui Real Estate Co., Ltd. 41,423,514.93 -9,714,522.86

Konka Industrial Development (Wuhan)
43,290,693.00 -1,156,461.11
Co., Ltd.

Hefei KONSEMI Storage Technology Co.,
180,146,610.27 -35,576,608.88 -7,740.71
Ltd.

Xi'an Kang'an Intelligent Storage
6,000,000.00
Technology Co., Ltd.

Sichuan Hongxinchen Real Estate
54,880,000.00 -945,404.40
Development Co., Ltd.

Total 6,351,232,955.58 6,000,000.00 276,806,773.10 54,880,000.00 -167,423,944.75 -86,041.63

(Continued)

Investee Changes in the current year Closing balance Closing balance of
the provision for



231
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Cash dividends or
Changes in other Provision set aside
profits declared to Others
equities for impairment
be distributed

Konka Ventures Development
(Shenzhen) Co., Ltd. (formerly known as
5,004,579.62
"Konka Ventures Development
(Shenzhen) Co., Ltd." )

Nanjing Zhihuiguang Information
2,019,287.36
Technology Research Institute Co., Ltd.

Feidi Technology (Shenzhen) Co., Ltd. 10,706,907.72


Shenzhen Kangyue Enterprise Co., Ltd. 24,977,328.88 24,977,328.88

Foshan Zhu gian g Media Creative Park
Cultural Development Co., Ltd.

Kangkai Technology Service (Chengdu)
114,193.79
Co., Ltd.

Pu giường Jiakang Technology Co, Ltd. 1,000,000.00 2,716,274.71


Chongqing Qingjia Electronics Co., Ltd.


Shenzhen Jielunte Technology Co., Ltd. 941,486.48 94,917,575.00


Panxu Intelligence Co., Ltd. 48,686,477.11

Orient Excellent (Zhuhai) Asset
400,000.00 8,198,574.99
Management Co., Ltd.


232
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Changes in the current year
Closing balance of
Investee Cash dividends or Closing balance the provision for
Changes in other Provision set aside
profits declared to Others impairment
equities for impairment
be distributed
Dongfang Jiakang No.1 (Zhuhai) Private
Equity Investment Fund (LP) (formerly:
338,089,300.42
Dongfang Konka No. 1 (Zhuhai) Private
Equity Investment Fund (LP))

Tongxiang Wuzhen Kunyu Venture
Capital Investment Co., Ltd. (formerly:
3,524,037.08
Tongxiang Wuzhen Kunyu Equity
Investment Co., Ltd.)

Shenzhen RF-Llink Technology Co., Ltd. 85,656,027.35

Anhui Kaikai Shijie E-commerce Co.,
418,814,414.98
Ltd.

Kunshan Kangsheng Investment
53,900,000.00 207,333,483.86
Development Co., Ltd.

Chutian Dragon Co., Ltd. -413,895,137.87

Shanxi Silk Road Cloud Intelligent Tech
5,187,588.48
Co., Ltd.

Shenzhen Kanghong xing Intelligent
12,660,222.73
Technology Co., Ltd.

Shenzhen Zhongkang Beidou
Technology Co., Ltd. (formerly named:
Shenzhen Zhongbing Konka Technology

233
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Changes in the current year
Closing balance of
Investee Cash dividends or Closing balance the provision for
Changes in other Provision set aside
profits declared to Others impairment
equities for impairment
be distributed
Co., Ltd.)


Shenzhen Yaode Technology Co., Ltd. 214,559,469.35

Wuhan Tianyuan Environmental
127,671,222.93 3,078,000.00 512,729,351.11
Protection Co., Ltd.

Chuzhou Konka Technology Industry
39,335,548.57
Development Co., Ltd.

Chuzhou Kangjin Health Industrial
239,037,618.98
Development Co., Ltd.

Nantong Kang gian Technology Industrial
Park Operations and Management Co., 107,310,029.86
Ltd.

Chuzhou Kangxin Health Industry
180,752,809.79
Development Co., Ltd.

Dongguan Guankang Yuhong Investment
501,408,938.92
Co., Ltd.

Shenzhen Morsemi Semiconductor
Technology Co., Ltd.

Shandong Econ Technology Co., Ltd. -4,074,486.01 81,806,510.02 1,130,575,773.36 81,806,510.02




234
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Changes in the current year
Closing balance of
Investee Cash dividends or Closing balance the provision for
Changes in other Provision set aside
profits declared to Others impairment
equities for impairment
be distributed
Dongguan Kangjia New Materials
6,857,694.77
Technology Co., Ltd..

Chongqing E2info Technology Co., Ltd. -5,977,391.99 1,048,983,188.06

Yantai Kangyun Industrial Development
65,884,386.16
Co., Ltd.

E3info (Hainan) Technology Co., Ltd. 30,715,678.97

Shenzhen Kangjia Jiapin Intelligent
Electrical Apparatus Technology Co., 7,090,590.47
Ltd.

Shenzhen KONKA E-display Co., Ltd. 85,057,438.63

Chongqing Yuanlv Benpao Real Estate
28,089,915.82
Co., Ltd.

Shenzhen Kangpeng Digital Technology
1,770,021.01
Co., Ltd.

Yantai Kangtang Construction
862,394.07
Development Co., Ltd.

Dongguan Konka Smart Electronic
24,124,143.70
Technology Co., Ltd.



235
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Changes in the current year
Closing balance of
Investee Cash dividends or Closing balance the provision for
Changes in other Provision set aside
profits declared to Others impairment
equities for impairment
be distributed
Guangdong Fanzhou Information
Technology Co., Ltd. (formerly: Sichuan
Huayi Jiakang Technology Co., Ltd.)

Shenzhen Aimijiakang Technology Co.,
Ltd. (formerly: Sichuan Aimijiakang 1,173,870.57
Technology Co., Ltd.)

Beijing Konka Jingyuan Technology Co.,
703,703.42
Ltd.

Chongqing Liangshan Enterprise
178,368.53
Management Co., Ltd.

Shenzhen Kangxi Technology Innovation
1,026,306.07
Development Co., Ltd.

Shandong Kangfei Intelligent Electrical
245,911.63
Appliances Co., Ltd.

Henan Kangfei Intelligent Electric
1,939,694.34
Appliance Co., Ltd.

Guangdong Kangyuan Semiconductor
122,000.00 9,957,207.04
Co., Ltd.

Chongqing Kangyiqing Technology Co.,
633,719.09
Ltd.




236
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Changes in the current year
Closing balance of
Investee Cash dividends or Closing balance the provision for
Changes in other Provision set aside
profits declared to Others impairment
equities for impairment
be distributed
Shenzhen Kangying Semiconductor
16,852,760.53 19,339,655.22
Technology Co., Ltd.

KK Smartech Limited 1,612,150.56


Chongqing Kang gian Photoelectric
8,329,131.78
Technology Co., Ltd.

Anhui Kangta Supply Chain
17,256,599.85
Management Co., Ltd.

Wuhan Kangtang Information
25,757,222.60
Technology Co., Ltd.

Sichuan Chengrui Real Estate Co., Ltd. 31,708,992.07

Konka Industrial Development (Wuhan)
42,134,231.89
Co., Ltd.

Hefei KONSEMI Storage Technology
44,092,024.98 188,654,285.66
Co., Ltd.

Xi'an Kang'an Intelligent Storage
6,000,000.00
Technology Co., Ltd.

Sichuan Hongxinchen Real Estate
53,934,595.60
Development Co., Ltd.



237
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Changes in the current year
Closing balance of
Investee Cash dividends or Closing balance the provision for
Changes in other Provision set aside
profits declared to Others impairment
equities for impairment
be distributed
Total 178,686,130.44 59,319,486.48 106,783,838.90 -413,895,137.87 5,566,483,863.29 419,659,558.33

Note 1: The above investees are all associates.
Note 2: "Other" represents the conversion of long-term equity investments accounted for under the equity method to financial assets.




238
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
14. Other equity instrument investments
14.1 Other equity instrument investments

Item Closing balance Opening balance

Shenzhen Tianyilian Science & Technology Co.,
Ltd.

Shenzhen Adopt Network Co., Ltd.

Beijing Huyu Digital Technology Co., Ltd.
(formerly: Beijing Aowei Mutual Entertainment 5,901,121.80 5,901,121.80
Technology Co., Ltd.)

Feihong Electronics Co., Ltd.

ZAEFI

Shenzhen Chuangce Investment Development
Co., Ltd.

Shanlian Information Technology Engineering
1,860,809.20 1,860,809.20
Centre

Shenzhen CIU Science & Technology Co., Ltd. 953,000.00 953,000.00

Shenzhen Digital TV National Engineering
7,726,405.16 7,726,405.16
Laboratory Co., Ltd.

Shanghai National Engineering Research Centre
2,400,000.00 2,400,000.00
of Digital TV Co., Ltd.

BOHUA UHD 5,000,001.00 5,000,001.00

Total 23,841,337.16 23,841,337.16




239
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
14.2 Investments in non-trading equity instruments in the current year

Dividend
Amount of other Reason for assigning to Reason for other
income
Accumulative Accumulative comprehensive measure in fair value of comprehensive
Item recognised in
gains losses income transferred to which changes included income transferred
the current
retained earnings other comprehensive income to retained earnings
year

Shenzhen Tianyilian Science & Technology Co., Long-term holding based on
4,800,000.00
Ltd. strategic purpose

Long-term holding based on
Shenzhen Adopt Network Co., Ltd.
strategic purpose

Beijing Huyu Digital Technology Co., Ltd.
Long-term holding based on
(formerly: Beijing Aowei Mutual Entertainment 98,878.20
strategic purpose
Technology Co., Ltd.)

Long-term holding based on
Feihong Electronics Co., Ltd. 1,300,000.00
strategic purpose

Long-term holding based on
ZAEFI 100,000.00
strategic purpose

Shenzhen Chuangce Investment Development Co., Long-term holding based on
485,000.00
Ltd. strategic purpose

Shanlian Information Technology Engineering Long-term holding based on
3,139,190.80
Centre strategic purpose

Long-term holding based on
Shenzhen CIU Science & Technology Co., Ltd. 200,000.00
strategic purpose

Shenzhen Digital TV National Engineering Long-term holding based on
1,273,594.84
Laboratory Co., Ltd. strategic purpose


240
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Dividend
Amount of other Reason for assigning to Reason for other
income
Accumulative Accumulative comprehensive measure in fair value of comprehensive
Item recognised in
gains losses income transferred to which changes included income transferred
the current
retained earnings other comprehensive income to retained earnings
year

Shanghai National Engineering Research Centre of Long-term holding based on
Digital TV Co., Ltd. strategic purpose

Long-term holding based on
BOHUA UHD
strategic purpose

Total 11,396,663.84




241
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
15. Other non-current financial assets

Item Closing balance Opening balance

China Asset Management-Jiayi Overseas Designated Plan 200,732,067.00 200,732,067.00

Tianjin Huacheng Property Development Co., Ltd. 1,000,000.00 1,000,000.00

Tianjin Property No. 8 Enterprise Management Partnership
28,540,777.26 28,540,777.26
(Limited Partnership)

CCB Trust-Cai Die No. 6 Property Rights Trust Scheme 66,080,293.70 66,080,293.70

Daye Trust Co., Ltd. 100,000,000.00 100,000,000.00

Yibin OCT San gian g Properties Co., Ltd. 199,774,696.09 171,141,605.35

Yili Ecological Restoration Co., Ltd. 41,812,139.03

Kunshan Xinjia Emerging Industry Equity Investment Fund
231,190,200.00 233,834,173.06
Partnership (Limited Partnership)

Tongxiang Wuzhen Jiayu Digital Economy Industry Equity
201,451,000.00 195,312,419.69
Investment Partnership (Limited Partnership)

Yibin Kanghui Electronic Information Industry Equity Investment
60,292,000.00 67,706,235.45
Partnership (Limited Partnership)

Chuzhou Jiachen Information Technology Consulting Service
59,700,013.59 59,700,013.59
Partnership (Limited Partnership)

Yancheng Kangyan Information Industry Investment Partnership
162,937,428.56 167,230,693.52
(Limited Partnership)

Chongqing Kangxin Equity Investment Fund Limited Partnership
155,691,200.00 146,160,043.51
(Limited Partnership)

Shenzhen Kanghuijia Technology Co., Ltd. 7,684.53 10,137.30

Subtotal of equity investments 1,467,397,360.73 1,479,260,598.46

Chuzhou Huike Smart Household Appliances Industry Investment
626,244,139.25
Partnership (Limited Partnership)

Ningbo Yuanqing No. 9 Investment Partnership 148,855,198.11 148,855,198.11

Shenzhen Beihu Technology Partnership (Limited Partnership) 59,735,232.88 58,000,000.00

Shanxi Kangmengrong Enterprise Management Consulting
9,163,411.30 9,163,411.30
Partnership (Limited Partnership)

Nanjing Kangfeng Dejia Asset Management Partnership (Limited
100,000,000.00 100,000,000.00
Partnership)

Shenzhen Gaohong Enterprise Consulting Management Partnership
109,739,999.99 100,000,000.00
(Limited Partnership)

242
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Item Closing balance Opening balance

Shenzhen Zitang No.1 Enterprise Consulting Management
99,000,000.00 100,386,000.00
Partnership (Limited Partnership)

Xi'an Bihuijia Enterprise Management Consulting Partnership
15,785,194.99 17,752,926.20
(Limited Partnership)

Subtotal of debt investments 542,279,037.27 1,160,401,674.86

Total 2,009,676,398.00 2,639,662,273.32

16. Investment property
(1) Investment properties measured at cost

Item Land use right Properties and buildings Total

I. Original carrying value


1. Opening balance 46,121,506.92 873,265,339.70 919,386,846.62

2. Increase in the current year 45,716,182.38 694,497,260.36 740,213,442.74

(1) External purchase

(2) Fixed assets\construction
in progress\transfer of 45,716,182.38 694,497,260.36 740,213,442.74
intangible assets

3. Decrease in the current year 9,651,872.39 9,651,872.39

(1) Disposal 9,651,872.39 9,651,872.39

(2) Other transfer out

4. Closing balance 91,837,689.30 1,558,110,727.67 1,649,948,416.97

II. The accumulative
depreciation and accumulative
amortisation

1. Opening balance 8,602,890.38 108,376,111.64 116,979,002.02

2. Increase in the current year 12,938,742.42 51,685,511.31 64,624,253.73

(1) Provision or amortisation 12,938,742.42 51,685,511.31 64,624,253.73

3. Decrease in the current year 1,881,562.65 1,881,562.65

(1) Disposal 1,881,562.65 1,881,562.65

(2) Other transfer out


243
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Item Land use right Properties and buildings Total

4. Closing balance 21,541,632.80 158,180,060.30 179,721,693.10

III. Provision for impairment

1. Opening balance

2. Increase in the current year

(1) Provision

3. Decrease in the current year

(1) Disposal

(2) Other transfer out

4. Closing balance

IV. Carrying value

1. Closing carrying value 70,296,056.50 1,399,930,667.37 1,470,226,723.87

2. Opening carrying value 37,518,616.54 764,889,228.06 802,407,844.60

(2) Impairment test of investment properties measured at cost
No provision for impairment of investment properties was made during the Reporting Period.
(3) Investment properties measured at fair value
There were no investment properties measured at fair value of the Group.
(4) Investment properties in the process of title certificate handling

Reason that the certificate of
Item Carrying value
title was not completed

In the process of project closure,
Konka Standard Electronic Product project closure will not be
379,447,349.50
Plants Project in Sunning processed until the project is
completed.

Total 379,447,349.50

(5) Investment properties with restricted ownership or use rights

Item Closing carrying value Reasons for the restriction

Konka Guangming Technology Centre 585,984,804.04 Mortgage loan

Total 585,984,804.04




244
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
17. Fixed assets

Item Closing carrying value Opening carrying value

Fixed assets 5,218,297,745.16 4,114,029,693.38

Liquidation of fixed assets

Total 5,218,297,745.16 4,114,029,693.38




245
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
17.1 Fixed Assets
( 1 ) Fixed assets

Properties and Machinery and Transport
Item Electronic equipment Other equipment Total
buildings equipment equipment

I. Original carrying value

1. Opening balance 2,860,293,710.15 3,103,345,131.12 302,309,738.49 59,879,173.09 186,025,451.11 6,511,853,203.96

2. Increased amount of the
1,299,077,259.43 279,351,764.21 30,227,593.48 1,761,050.75 8,352,110.55 1,618,769,778.42
period

(1) Purchase 325,596,840.93 139,864,293.96 20,346,382.12 1,760,819.64 7,190,109.12 494,758,445.77

(2) Transfer-in of
967,772,669.04 139,487,470.25 9,816,998.15 944,067.26 1,118,021,204.70
construction in progress

(3) Increase through
consolidation

(4) Other transfer-in 5,707,749.46 64,213.21 231.11 217,934.17 5,990,127.95

3. Decreased amount of the
95,152,152.59 61,816,110.53 30,348,819.09 5,704,442.53 5,133,921.78 198,155,446.52
period

(1) Disposal or write-off 19,526,320.70 60,265,701.84 30,004,311.36 5,704,442.53 5,062,497.96 120,563,274.39

(2) Decrease for loss of
246,216.18 28,066.87 274,283.05
controlling right

(3) Other decreases 75,625,831.89 1,550,408.69 98,291.55 43,356.95 77,317,889.08

4. Ending balance 4,064,218,816.99 3,320,880,784.80 302,188,512.88 55,935,781.31 189,243,639.88 7,932,467,535.86

246
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Properties and Machinery and Transport
Item Electronic equipment Other equipment Total
buildings equipment equipment

II. Accumulated depreciation

1. Opening balance 673,384,702.71 1,258,513,887.86 201,688,344.85 42,829,692.30 114,585,141.99 2,291,001,769.71

2. Increased amount of the
88,238,734.15 253,047,208.96 25,797,795.95 4,288,186.59 14,983,833.20 386,355,758.85
period

(1) Provision 88,140,964.08 253,047,208.96 25,774,051.55 4,286,640.96 14,975,209.95 386,224,075.50

(2) Increase through
consolidation

(3) Other increase 97,770.07 23,744.40 1,545.63 8,623.25 131,683.35

3. Decreased amount of the
20,779,007.06 45,806,853.16 27,335,857.31 5,023,692.07 4,435,014.79 103,380,424.39
period

(1) Disposal or write-off 8,277,772.35 44,360,911.18 27,123,276.68 5,023,692.07 4,421,359.72 89,207,012.00

(2) Decrease for loss of
142,275.35 10,096.45 152,371.80
controlling right

(3) Other decreases 12,501,234.71 1,445,941.98 70,305.28 3,558.62 14,021,040.59

4. Ending balance 740,844,429.80 1,465,754,243.66 200,150,283.49 42,094,186.82 125,133,960.40 2,573,977,104.17

III. Provision for impairment

1. Opening balance 23,987,527.51 75,533,448.92 1,351,990.45 827,482.72 5,121,291.27 106,821,740.87

2. Increased amount of the 38,394,135.80 1,953,399.08 20,675.15 239,490.37 40,607,700.40

247
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Properties and Machinery and Transport
Item Electronic equipment Other equipment Total
buildings equipment equipment
period

(1) Provision 38,394,135.80 1,953,399.08 20,675.15 239,490.37 40,607,700.40

3. Decreased amount of the
6,667,685.91 515,589.11 6,712.58 46,767.14 7,236,754.74
period

(1) Disposal or write-off 6,667,685.91 515,589.11 6,712.58 46,767.14 7,236,754.74

(2) Other decrease

4. Ending balance 23,987,527.51 107,259,898.81 2,789,800.42 841,445.29 5,314,014.50 140,192,686.53

IV. Carrying value

1. Ending carrying value 3,299,386,859.68 1,747,866,642.33 99,248,428.97 13,000,149.20 58,795,664.98 5,218,297,745.16

2. Opening carrying value 2,162,921,479.93 1,769,297,794.34 99,269,403.19 16,221,998.07 66,319,017.85 4,114,029,693.38




248
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
(2) List of temporarily idle fixed assets

Original carrying Accumulated Provision for
Item Carrying value
value depreciation impairment

Machinery and
817,733,189.57 405,918,829.25 87,442,687.20 324,371,673.12
equipment

Electronic
8,275,226.50 6,047,459.25 111,084.51 2,116,682.74
equipment

Transport
3,887,229.49 3,603,831.64 20,675.15 262,722.70
equipment

Properties and
264,495,526.66 140,592,457.98 7,899,900.07 116,003,168.61
buildings

Other equipment 1,530,288.55 860,946.31 286,304.40 383,037.84

Total 1,095,921,460.77 557,023,524.43 95,760,651.33 443,137,285.01

(3) Fixed assets leased out through operating leases

Item Closing carrying value

Electronic equipment 260,911.84

Machinery and equipment 23,973,121.72

Other equipment 384,458.99

Transport equipment 13,785.92

Total 24,632,278.47

(4) Details of fixed assets failed to accomplish certification of property

Reason
that the
Provision
Original carrying Accumulated certificate
Item for Net book value
value depreciation of title was
impairment
not
completed

Being
Ankang's plants 603,604,487.36 33,087,555.67 570,516,931.69
handled

Housing and buildings Being
453,857,134.27 9,842,056.02 444,015,078.25
of Chongqing Konka handled

Fenggang Konka
Intelligent Colour TV Being
425,011,644.82 3,984,484.17 421,027,160.65
Project (Part I) handled
property

Frestec Smart Home Being
404,782,206.92 867,390.46 403,914,816.46
properties and handled

249
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Reason
that the
Provision
Original carrying Accumulated certificate
Item for Net book value
value depreciation of title was
impairment
not
completed
buildings

Yikang Building Being
76,610,752.33 42,076,014.80 34,534,737.53
property handled

Boluo Printing Plate Being
51,746,373.49 831,638.15 50,914,735.34
Phase III Plant handled

Jingyuan Building Being
7,700,000.00 4,244,612.05 3,455,387.95
property handled

Standard electronic
Being
product plants in 1,544,085.19 72,504.88 1,471,580.31
handled
Sunning

Total 2,024,856,684.38 95,006,256.20 1,929,850,428.18




250
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
(5) Impairment test of fixed assets
During the Reporting Period, the Company conducted impairment tests on the fixed assets of Anhui Konka Electronic Co., Ltd., Suining Konka Smart Technology
Co., Ltd., GuangDong XingDa HongYe Electronic Co., Ltd., Henan Frestec Refrigeration Appliance Co., Ltd. and Jiangxi Konka New Material Technology Co.,
Ltd., determined their recoverable amounts based on the net fair value less disposal costs, and recognised an impairment loss on assets of RMB40,607,700.4.

Recoverable Impairment Determination of fair value Key
Item Carrying value Basis for determining key parameters
amount amount and disposal costs parameters

1. Instruments and machinery 1. The recovery unit price is determined by
equipment: fair value = recovery Recovery unit
the net price of disposal of waste materials
unit price × equipment weight; price,
(dismantling and transportation costs are all
Disposal costs = brokerage equipment
borne by the recovery unit); 2. The
Anhui Konka electronic services weight,
1,952,063.48 53,097.35 1,898,966.13 equipment weight is weighed on-site; 3. The
equipment quantity of
2. Electronic equipment: fair quantity of the equipment is determined by an
equipment,
value = recovery unit price × on-site inventory; 4. Intermediary service
brokerage
quantity of equipment; Disposal fees mainly include appraisal fees and
services
costs = brokerage services intermediary fees for trading platforms.

1. The recovery unit price is determined by
the net price of disposal of waste materials
Fair value = recovery unit price Recovery unit
(dismantling and transportation costs are all
Automatic production × quantity of equipment; price, quantity
born by the recovery unit); 2. The quantity of
line of Suining Konka 9,851,152.18 6,896,106.95 2,955,045.23 of equipment,
Disposal costs = intermediary the equipment is determined by an on-site
Smart intermediary
service fees inventory; 3. Intermediary service fees
service fees
include mainly appraisal fees and
intermediary fees for trading platforms.

1. The recovery unit price is determined by
the net price of disposal of waste materials
Recovery unit
Fair value = recovery unit price (dismantling and transportation costs are all
price, quantity
Machinery equipment of × quantity of equipment; born by the recovery unit); 2. The quantity of
1,973,454.42 392,931.04 1,580,523.38 of equipment,
XingDa HongYe Disposal costs = brokerage the equipment is determined by an on-site
brokerage
services inventory; 3. Intermediary service fees
services
include mainly appraisal fees and
intermediary fees for trading platforms.


251
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Recoverable Impairment Determination of fair value Key
Item Carrying value Basis for determining key parameters
amount amount and disposal costs parameters

1. Replacement costs: The costs are
determined mainly by directly requesting
quotations from dealers or manufacturers, or
by referring to price lists on website
Replacement platforms; 2. Comprehensive newness rate: It
costs, take into account various factors such as the
comprehensive current technical status of the equipment,
newness rate, tangible and intangible losses; 3. Economic
Fair value = replacement costs x Economic depreciation rate = (1 - (equipment is
comprehensive newness rate x (1 depreciation expected to be utilized production capacity /
- Economic depreciation rate); rate, equipment original design production
Machinery equipment of
7,949,779.02 2,857,105.30 5,092,673.72 Disposal costs = dismantling dismantling capacity) ^ economies of scale index) ×
Frestec Refrigeration
fees and transportation and fees, 100%. Economy of scale index that is
miscellaneous fees + transportation empirical data, take the value of the
intermediary service fees and processing industry is generally 0.7; 4.
miscellaneous Dismantling fees and transportation and
fees, miscellaneous fees: They are determined by
intermediary referring to the Handbook of Commonly
service fees Used Methods and Parameters for Asset
Appraisal and empirical data; 5. Intermediary
service fees: The fees mainly comprises
appraisal fees, and the intermediary fees for
trading platforms.

Replacement 1. Replacement costs: The costs are
costs, determined mainly by directly requesting
Fair value = replacement costs x
comprehensive quotations from dealers or manufacturers, or
comprehensive newness rate x (1
newness rate, by referring to price lists on website
- Economic depreciation rate);
Production line of Economic platforms; 2. Comprehensive newness rate: It
449,815,738.10 420,735,246.16 29,080,491.94 Disposal costs = dismantling depreciation take into account various factors such as the
Jiangxi Konka
fees and transportation and rate, current technical status of the equipment,
miscellaneous fees + dismantling tangible and intangible losses; 3. Economic
intermediary service fees fees, depreciation rate = (1 - (equipment is
transportation expected to be utilized production capacity /
and equipment original design production
252
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Recoverable Impairment Determination of fair value Key
Item Carrying value Basis for determining key parameters
amount amount and disposal costs parameters
miscellaneous capacity) ^ economies of scale index) ×
fees, 100%. Economy of scale index that is
intermediary empirical data, take the value of the
service fees processing industry is generally 0.7; 4.
Dismantling fees and transportation and
miscellaneous fees: They are determined by
referring to the Handbook of Commonly
Used Methods and Parameters for Asset
Appraisal and empirical data; 5. Intermediary
service fees: The fees mainly comprises
appraisal fees, and the intermediary fees for
trading platforms.

Total 471,542,187.20 430,934,486.80 40,607,700.40 - - -




253
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
(6) Fixed Assets with Restricted Ownership or Use Right

Item Closing carrying value Reasons for the restriction

Anhui Konka's buildings 601,293,059.60 Mortgage loan

Housing and buildings of Chongqing
337,145,406.93 Mortgage loan
Konka

Properties and buildings of Shanxi
321,704,287.16 Mortgage loan
Konka Intelligent

Housing and buildings of Anhui
140,196,525.72 Mortgage loan
Tong giường 

Housing and buildings of Frestec
81,616,033.52 As collateral for finance lease
Refrigeration

Machinery equipment of XingDa
67,632,465.17 As collateral for finance lease
HongYe

Buildings of Konka Group 63,063,516.77 Mortgage loan

Housing and buildings of Jiangsu
35,470,487.60 Mortgage loan
Konka Intelligent

Housing and buildings of XingDa
30,836,709.44 Mortgage loan
HongYe

Machinery equipment of Xinfeng
8,137,181.77 As collateral for finance lease
Microcrystalline

Housing and buildings of Jiangxi Original shareholder guarantee
2,506,636.50
Konka mortgage

Total 1,689,602,310.18




254
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
18. Construction in progress
(1) Construction in progress

Closing balance Opening balance
Item
Provision for Provision for
Book balance Carrying value Book balance Carrying value
impairment impairment

Chongqing Konka Semiconductor
349,269.02 349,269.02 197,885,487.81 197,885,487.81
Optoelectronics Park Project

Guangming Project 466,051,847.89 466,051,847.89

Jiangxi High-permeability Crystalisation
246,576,748.57 46,755,148.57 199,821,600.00 246,576,748.57 20,068,730.37 226,508,018.20
Kiln

Dongguan Konka New Industrial Park 398,018,288.30 398,018,288.30

Construction of Suining Electronic
177,516,258.23 177,516,258.23 221,981,375.38 221,981,375.38
Industrial Park Workshops

Frestec Smart Home Appliances Park 994,166.33 994,166.33 113,146,458.03 113,146,458.03

Suining Konka Hongye Plant Decoration
76,141,438.86 76,141,438.86 1,955,898.52 1,955,898.52
Project

Dishwasher Project of Jiangxi Konka 55,685,802.09 55,685,802.09 1,166,575.23 1,166,575.23

Production Line Renovation Project of
85,861,185.36 12,518,073.84 73,343,111.52 84,917,611.92 647,975.66 84,269,636.26
Jiangxi Konka

Other projects 319,798,751.76 42,750,899.13 277,047,852.63 322,694,187.33 43,316,395.88 279,377,791.45



255
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Closing balance Opening balance
Item
Provision for Provision for
Book balance Carrying value Book balance Carrying value
impairment impairment

Total 962,923,620.22 102,024,121.54 860,899,498.68 2,054,394,478.98 64,033,101.91 1,990,361,377.07

(2) Changes in major projects under construction in the current year

Decrease in the current year
Name of item Opening balance Increase in the current year Closing balance
Transferred to long-term
Other decreases
assets

Chongqing Konka Semiconductor
197,885,487.81 1,518,206.33 198,416,543.64 637,881.48 349,269.02
Optoelectronics Park Project

Guangming Project 466,051,847.89 6,504,273.24 472,556,121.13

Jiangxi High-permeability Crystalisation
246,576,748.57 246,576,748.57
Kiln

Dongguan Konka New Industrial Park 398,018,288.30 30,083,029.02 428,101,317.32

Construction of Suining Electronic Industrial
221,981,375.38 75,225,831.87 119,690,949.02 177,516,258.23
Park Workshops


Frestec Smart Home Appliances Park 113,146,458.03 285,925,118.68 398,077,410.38 994,166.33

Total 1,643,660,205.98 399,256,459.14 1,616,842,341.49 637,881.48 425,436,442.15




256
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
(Continued)

Proportion
Estimated Of which: the Capitalisation
estimated of Engineering Accumulated amount
number amount of the rate of the
Name of item the project Schedule of interest Source of fund
(RMB100 capitalised interests interests in the
accumulative (%) capitalisation
million) in the current year current year (%)
input (%)

Chongqing Konka Semiconductor
7.57 95.00 95.00 32,272.52 32,272.52 Self-owned fund and bank loans
Optoelectronics Park Project


Guangming Project 5.20 100.00 100.00 24,439,935.22 2,111,837.71 1.43 Self-owned fund and project loans


Jiangxi High-permeability Crystalisation
3.40 72.52 72.52 32,249,994.16 Bank loans
Kiln


Dongguan Konka New Industrial Park 5.97 71.69 71.69 23,936,481.59 8,669,809.56 4.59 Bank loans

Construction of Suining Electronic Industrial
7.34 95.00 95.00 Self-owned fund
Park Workshops

Self-owned funds, internal entrusted
Frestec Smart Home Appliances Park 4.88 100.00 100.00 14,134,622.62 7,347,326.08 3.73
loans, bank loans

Total 94,793,306.11 18,161,245.87

(3) Provision set aside for impairment of construction in progress in the current year

Decrease in the current
Category Opening balance Increase in the current year Closing balance Reason for withdrawal
year

Jiangxi High-permeability Failure to achieve
20,068,730.37 26,686,418.20 46,755,148.57
Crystalisation Kiln serviceable conditions


257
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Decrease in the current
Category Opening balance Increase in the current year Closing balance Reason for withdrawal
year

Jiangxi High Transparent Failure to achieve
36,181,822.63 36,181,822.63
Nano Line 1 Project serviceable conditions

Henan Civil Construction Failure to achieve
3,703,547.42 3,703,547.42
Project serviceable conditions

Construction in progress
Konka Huanjia is equipment not
environmental equipment 3,103,138.94 3,103,138.94
included in fixed assets,
which has been sold.

Failure to achieve
Other projects 975,862.55 14,735,793.62 328,053.25 15,383,602.92
serviceable conditions

Total 64,033,101.91 41,422,211.82 3,431,192.19 102,024,121.54 -

(4) Impairment test of construction in progress
During the Reporting Period, the Company conducted an impairment test on the construction in progress of Jiangxi Konka New Material Technology Co., Ltd.,
determined its recoverable amounts based on the present value of the net fair value less disposal costs, and recognised an impairment loss on assets of
RMB40,655,031.97.

Determination of fair
Item Carrying value Recoverable amount Impairment amount value and disposal Key parameters Basis for determining key parameters
costs

Economic depreciation rate = (1 - (capacity of
Production
Recoverable amount = equipment expected to be utilized / original
Line
replacement costs x (1 - Economic design capacity of equipment) ^ economy of
Renovation 85,213,453.73 73,343,355.55 11,870,098.18
economic depreciation depreciation rate scale index) x 100%. Economy of scale index,
Project of
rate) - disposal costs i.e., empirical data, takes the value of 0.7 for
Jiangxi Konka
the processing industry in general.

258
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Determination of fair
Item Carrying value Recoverable amount Impairment amount value and disposal Key parameters Basis for determining key parameters
costs

Economic depreciation rate = (1 - (capacity of
Jiangxi High- Recoverable amount = equipment expected to be utilized / original
permeability replacement costs x (1 - Economic design capacity of equipment) ^ economy of
226,508,018.20 199,821,600.00 26,686,418.20
Crystalisation economic depreciation depreciation rate scale index) x 100%. Economy of scale index,
Kiln rate) - disposal costs i.e., empirical data, takes the value of 0.7 for
the processing industry in general.

Economic depreciation rate = (1 - (capacity of
Other projects Recoverable amount = equipment expected to be utilized / original
of Xinfeng and replacement costs x (1 - Economic design capacity of equipment) ^ economy of
39,785,413.78 37,686,898.19 2,098,515.59
Jiangxi High- economic depreciation depreciation rate scale index) x 100%. Economy of scale index,
permeability rate) - disposal costs i.e., empirical data, takes the value of 0.7 for
the processing industry in general.

1. The market quotation is determined by the
net price of disposal of waste materials
Fair value = market (dismantling and transportation costs are all
Market quotation,
quotation x quantity of borne by the recovery unit); 2. The quantity of
Others 944,171.00 176,991.15 767,179.85 quantity of
equipment - disposal the equipment is determined by an on-site
equipment
costs inventory; 3. Intermediary service fees include
mainly appraisal fees and intermediary fees
for trading platforms.

Total 352,451,056.71 311,028,844.89 41,422,211.82 - - -




259
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
19. Right-of-use assets
(1) Right-of-use assets

Electronic Transport
Item Properties and buildings Total
equipment equipment

I. Original carrying
value

1. Opening balance 105,879,545.84 243,493.34 106,123,039.18

2. Increase in the
200,687,422.05 35,857.18 200,723,279.23
current year

(1) Rent 200,618,894.31 35,857.18 200,654,751.49

(2) Others 68,527.74 68,527.74

3. Decrease in the
28,467,652.05 28,467,652.05
current year

(1) Decrease for
loss of controlling
right

(2) Others 28,467,652.05 28,467,652.05

4. Closing balance 278,099,315.84 279,350.52 278,378,666.36

II. Accumulated
depreciation

1. Opening balance 56,047,009.73 56,190.77 56,103,200.50

2. Increase in the
42,829,336.65 58,663.68 42,888,000.33
current year

(1) Provision 42,810,227.72 58,663.68 42,868,891.40

(2) Others 19,108.93 19,108.93

3. Decrease in the
17,666,957.64 17,666,957.64
current year

(1) Decrease for
loss of controlling
right

(2) Others 17,666,957.64 17,666,957.64

4. Closing balance 81,209,388.74 114,854.45 81,324,243.19

III. Provision for
impairment

1. Opening balance


260
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Electronic Transport
Item Properties and buildings Total
equipment equipment

2. Increase in the
current year

(1) Provision

3. Decrease in the
current year

(1) Disposal

4. Closing balance

IV. Carrying value

1. Closing carrying
196,889,927.10 164,496.07 197,054,423.17
value

2. Opening
49,832,536.11 187,302.57 50,019,838.68
carrying value

Note: Other decreases in original value and accumulated depreciation are mainly due to lease
expiration.




261
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
20. Intangible assets
(1) List of intangible assets



Intellectual property

Item Land use right Right to use Total
Patent and know-
Trademark right Franchise rights software and Subtotal
how
others

I. Original carrying
value

1. Opening balance 920,331,792.11 72,197,456.33 116,715,865.54 168,553,796.14 166,134,944.42 523,602,062.43 1,443,933,854.54

2. Increased amount
122,691,321.95 18,779,386.33 13,146,791.68 31,926,178.01 154,617,499.96
of the period

(1) Purchase 122,503,853.21 7,057,234.54 7,057,234.54 129,561,087.75

(2) Transfer-in of
construction in 8,245.09 18,779,386.33 6,089,557.14 24,868,943.47 24,877,188.56
progress

(3) Other reasons 179,223.65 179,223.65

3. Decreased amount
156,667,052.15 18,240.10 1,633,088.47 1,651,328.57 158,318,380.72
of the period

(1) Disposal 25,524,869.53 18,240.10 1,501,672.54 1,519,912.64 27,044,782.17



262
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

(2) Decrease for loss
17,493,200.24 17,493,200.24
of controlling right

(3) Decrease for other
113,648,982.38 131,415.93 131,415.93 113,780,398.31
reasons

4. Ending balance 886,356,061.91 72,197,456.33 116,697,625.44 187,333,182.47 177,648,647.63 553,876,911.87 1,440,232,973.78

II. Accumulated
amortisation

1. Opening balance 99,146,643.20 19,252,110.49 71,318,420.60 1,560,683.29 90,172,768.07 182,303,982.45 281,450,625.65

2. Increased amount
18,108,965.88 4,163,515.95 399,471.81 10,160,632.33 14,842,731.26 29,566,351.35 47,675,317.23
of the period

(1) Provision 18,108,965.88 4,163,515.95 399,471.81 10,160,632.33 14,842,731.26 29,566,351.35 47,675,317.23


(2) Other increases

3. Decreased amount
20,531,435.34 18,240.10 1,472,830.62 1,491,070.72 22,022,506.06
of the period

(1) Disposal 4,582,759.52 1,441,881.38 1,441,881.38 6,024,640.90

(2) Decrease for loss
553,951.33 553,951.33
of controlling right

(3) Decrease for other
15,394,724.49 18,240.10 30,949.24 49,189.34 15,443,913.83
reasons




263
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

4. Ending balance 96,724,173.74 23,415,626.44 71,699,652.31 11,721,315.62 103,542,668.71 210,379,263.08 307,103,436.82

III. Provision for
impairment

1. Opening balance 564,705.88 44,943,521.62 235,294.12 45,743,521.62 45,743,521.62

2. Increased amount
of the period

(1) Provision

(2) Increase in
business
combinations

3. Decreased amount
of the period

(1) Disposal

(2) Decrease for loss
of controlling right

4. Ending balance 564,705.88 44,943,521.62 235,294.12 45,743,521.62 45,743,521.62


IV. Carrying value

1. Ending carrying
789,631,888.17 48,217,124.01 54,451.51 175,611,866.85 73,870,684.80 297,754,127.17 1,087,386,015.34
value



264
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

2. Opening carrying
821,185,148.91 52,380,639.96 453,923.32 166,993,112.85 75,726,882.23 295,554,558.36 1,116,739,707.27
value

Note: There was no impairment of the Group's intangible assets during the Reporting Period.




265
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
(2) Land use right with certificate of title uncompleted
The Group did not have land use rights for which no title deeds had been issued.
(3) Significant intangible assets

Remaining amortisation period
Item Closing carrying value
(year)

Land use right of Dongguan Konka 185,832,462.67 45.67

Concessions of Yibin Konka 175,611,866.85 16.83

Land use right of Frestec Smart Home
90,267,954.17 46.75
Technology

Land usage right of Frestec Refrigeration 63,840,404.52 32.75

Total 515,552,688.21

(4) Intangible assets with restricted ownership or using right

Item Closing carrying value Reasons for the restriction

Land use right of Dongguan Konka 185,832,462.67 Mortgage loan

Land use right of Shanxi Konka Intelligent 121,439,312.85 Mortgage loan

Land use right of Frestec Smart Home
90,267,954.17 Mortgage loan
Technology

Land usage right of Frestec Refrigeration 63,840,404.52 As collateral for finance lease

Land use right of Anhui Konka 53,873,716.00 Mortgage loan

Land use right of Chongqing Konka 44,585,522.54 Mortgage loan

Land use right of Anhui Tong giường 17,455,478.16 Mortgage loan

Land use right of Jiangsu Konka 13,746,913.56 Mortgage loan

Land use right of XingDa HongYe 13,112,683.07 Mortgage loan

Original shareholder guarantee
Land use right of Jiangxi Konka 12,096,157.01
mortgage

Land use right of Konka Guangming 4,343,453.05 Mortgage loan

Total 620,594,057.60




266
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
21. Goodwill
(1) Original carrying value of goodwill

Increase in the current Decrease in the
year current year
Opening
Investee Closing balance
balance Formed through
business Others Disposal Others
combinations

Jiangxi Konka 340,111,933.01 340,111,933.01

XingDa
44,156,682.25 44,156,682.25
HongYe

Total 384,268,615.26 384,268,615.26

(2) Provision for goodwill impairment

Increase in the current Decrease in the
year current year
Investee Opening balance Closing balance
Provision Others Disposal Others

Jiangxi Konka 340,111,933.01 340,111,933.01

XingDa
21,959,947.14 21,959,947.14
HongYe

Total 362,071,880.15 362,071,880.15

(3) Information on the asset group or the combination of asset groups of the goodwill

Composition and basis of the
Whether it is consistent with the
Name asset group or combination of
previous year
asset groups

It is a group of assets related to
goodwill consisting of all operating
tangible assets and recognizable
intangible assets of the
corresponding subsidiary's main
business as reflected in its balance
Asset group of XingDa HongYe sheet (excluding working capital Yes
and non-operating assets), based on
whether or not the major cash
inflows generated by the asset
group are independent of those
generated by other assets or the
asset group.

(4) Specific determination method for recoverable amount
The Company's management performed an impairment test of goodwill at the end of the year, and
recognised XingDa HongYe as a whole as a single asset group, which is consistent with prior
years.
The Company uses the present value of estimated future cash flows to calculate the recoverable
267
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
amount of an asset group. Future cash flows are determined based on the financial budgets
approved by management for the years 2024 through 2029 and using a discount rate of 12.88%.
The cash flows of XingDa HongYe for more than six years are calculated on the basis of a growth
rate of 0%. The Company engaged an appraisal institution, Shenzhen Pengxin Asset Appraisal
Land and Real Estate Appraisal Co., Ltd., to conduct an appraisal of the asset group containing
goodwill of XingDa HongYe by adopting the income approach, using the present value of the
estimated future cash flows of the assets of the asset group as its recoverable amount. The
appraisal institution issued on 26 February 2024 the P.X.Z.P.B.Z. [2024] No. S033 Asset
Appraisal Report on the Recoverable Amount of the Asset Group Containing Goodwill Formed by
the Merger and Acquisition of GuangDong XingDa HongYe Electronic Co., Ltd. in Relation to
the Goodwill Impairment Test to be Conducted by Konka Group Co., Ltd., which takes 31
December 2023 as the appraisal base date. The present value of the asset group of XingDa
HongYe as at the appraisal date amounted to RMB257,920,000, and the book value of the asset
group adjusted to its fair value (including the goodwill as a whole) was RMB255,359,800,000, of
which the carrying value of goodwill (inclusive of minority shareholders) amounted to
RMB43,523,000. Therefore, XingDa HongYe had been tested for impairment of goodwill and no
impairment of goodwill existed in the current year. As of the Reporting Date, XingDa HongYe
had accumulated goodwill impairment of approximately RMB21,959,900,000.
22.Long-term deferred expenses

Other
Increase in the Amortisation in decreases in
Item Opening balance Closing balance
current year the current year the current
year

Decoration
263,367,218.24 176,711,718.86 68,569,296.13 1,120,704.09 370,388,936.88
expenses

Shoppe
18,787,080.49 20,632,263.63 13,765,981.11 678,887.63 24,974,475.38
expense

Others 105,155,204.34 63,771,326.63 45,041,486.17 329,233.35 123,555,811.45

Total 387,309,503.07 261,115,309.12 127,376,763.41 2,128,825.07 518,919,223.71

23.Deferred Income Tax Assets/Deferred Income Tax Liabilities
( 1 ) Deferred tax assets that have not been offset

Closing balance Opening balance

Item Deductible Deferred tax Deductible Deferred tax
temporary temporary
differences Assets differences Assets

Deductible
3,747,584,829.70 794,363,411.92 3,446,211,696.71 710,037,893.08
losses

Provision for
asset 1,879,389,407.11 407,751,765.55 1,665,450,141.63 364,146,193.07
impairment

Deferred
167,691,056.33 36,766,230.50 90,355,036.00 22,296,259.01
revenue



268
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Closing balance Opening balance

Item Deductible Deferred tax Deductible Deferred tax
temporary temporary
differences Assets differences Assets

Accrued
262,522,401.07 58,732,850.29 208,346,464.01 49,058,992.22
expenses

Unrealised
internal sales 55,653,196.64 13,913,299.16 62,006,060.41 15,501,515.10
profits

Lease liabilities 207,847,769.62 50,208,319.90 37,349,686.00 6,951,620.03

Others 279,982,155.72 64,838,104.84 134,840,920.33 29,413,898.14

Total 6,600,670,816.19 1,426,573,982.16 5,644,560,005.09 1,197,406,370.65

( 2 ) Deferred tax liabilities that have not been offset

Closing balance Opening balance

Item Deferred tax Deferred tax
Taxable temporary Taxable temporary
differences liabilities differences liabilities

Estimated
added value of
154,693,540.82 37,285,533.12 193,084,308.55 41,509,033.61
assets not under
the same control

Prepaid interest 37,541,390.08 9,385,347.52 46,965,768.40 11,741,442.10

Accelerated
depreciation of 3,005,493.04 608,518.82 4,406,228.55 1,376,446.54
fixed assets

Financial assets
at fair value
327,802,549.12 81,950,637.29 98,900,582.49 24,725,145.63
through profit
or loss

Right-of-use
195,220,008.99 48,074,535.52 30,800,411.02 5,891,361.34
assets

Others 47,153,970.40 7,721,593.00 42,438,733.89 10,183,869.09

Total 765,416,952.45 185,026,165.27 416,596,032.90 95,427,298.31

( 3 ) Breakdown of unrecognised deferred tax assets

Item Closing balance Opening balance

Deductible losses 3,693,212,186.74 2,114,844,242.75



269
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Item Closing balance Opening balance

Deductible temporary differences 4,173,904,666.60 2,967,427,358.07

Total 7,867,116,853.34 5,082,271,600.82

( 4 ) Deductible losses of unrecognised deferred tax assets matured/will mature in the
following year

Year Closing balance Opening balance Notes

2023 134,203,193.22

2024 175,414,641.28 92,292,924.99

2025 464,500,932.68 136,655,028.18

2026 224,104,387.87 263,654,830.43

2027 110,289,035.04 1,488,038,265.93

2028 and following years 2,718,903,189.87

Total 3,693,212,186.74 2,114,844,242.75 -

24. Other non-current assets

Closing balance
Item
Provision for
Book balance Carrying value
impairment

Prepayment for land-purchase 1,029,317,896.04 1,029,317,896.04

Prepayment for construction, equipment
219,010,910.12 219,010,910.12
and other long-term assets

Total 1,248,328,806.16 1,248,328,806.16

(Continued)

Opening balance
Item
Provision for
Book balance Carrying value
impairment

Prepayment for land-purchase 1,459,111,732.63 1,459,111,732.63

Prepayment for construction, equipment
251,133,645.63 251,133,645.63
and other long-term assets

Total 1,710,245,378.26 1,710,245,378.26

25. Assets with restricted ownership or use rights

Item End of the year


270
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Type of
Book balance Carrying value Restriction details
restriction

Among them,
RMB384,011,696.60 is margin
deposit, pledge is used for
borrowing or issuing bank
Margins,
Monetary acceptance,
831,575,227.47 831,575,227.47 pledges, time
assets RMB226,611,500.00 is time
deposits
deposit that cannot be
withdrawn in advance;
RMB220,952,030.87 is
restricted due to other reasons.

Accounts
2,527,314.22 2,474,071.67 Pledge Pledge loan
receivable

Notes They are pledged for the
209,288,446.67 209,288,446.67 Pledge
receivable issuance of bank acceptance

Carrying value of inventories
seized as a result of the
minority shareholder case of a
subsidiary was
Seizure,
Inventory 601,395,411.05 599,475,045.44 RMB49,679,547.48, and the
mortgage
Company did not waive claims;
year-end book value of
inventory used for mortgage
loans was RMB549,795,497.96.

Investment
634,578,011.63 585,984,804.04 Mortgage Mortgage loan
property

Mortgage for finance lease,
mortgage loan, mortgage
Fixed assets 2,003,558,346.93 1,689,602,310.18 Mortgage
guaranteed by the original
shareholder

Mortgage for finance lease,
Intangible mortgage loan, mortgage
687,667,571.97 620,594,057.60 Mortgage
assets guaranteed by the original
shareholder

Construction
40,629,663.23 40,629,663.23 Mortgage Mortgage loan
in progress

Total 5,011,219,993.17 4,579,623,626.30 - -

(Continued)

Beginning of the year
Item
Type of
Book balance Carrying value Restriction details
restriction

Margins, Among them,
Monetary RMB435,167,024.52 is margin
526,183,479.81 526,183,479.81 pledges, time
assets deposit, pledge is used for
deposits
borrowing or issuing bank
271
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Beginning of the year
Item
Type of
Book balance Carrying value Restriction details
restriction
acceptance, RMB305,405.41 is
financial supervision account
fund; RMB69,800,000.00 is
time deposit that cannot be
withdrawn in advance;
RMB20,911,049.88 is restricted
due to other reasons.

Notes Pledge for making out an
504,958,051.41 504,958,051.41 Pledge
receivable invoice

Affected by the case of the
minority shareholder of the
subsidiary, the inventory was
Inventory 201,747,758.47 49,679,547.48 Seizure
wrongly seized, and the
company did not give up the
claim.

Investment
104,066,818.20 104,066,818.20 Mortgage Mortgage loan
property

Mortgage for billing, mortgage
for finance lease, mortgage
Fixed assets 1,899,311,066.39 1,437,778,232.95 Mortgage
loan, mortgage guaranteed by
the original shareholder

Mortgage loan, mortgage for
Intangible finance lease, mortgage
557,863,536.11 512,162,337.46 Mortgage
assets guaranteed by the original
shareholder

Construction
268,783,371.35 229,757,971.08 Mortgage As collateral for finance lease
in progress

Total 4,062,914,081.74 3,364,586,438.39 - -

26. Short-term loans
( 1 ) Classification of short-term loans

Type of borrowings Closing balance Opening balance Notes

Unsecured loan 4,741,431,032.21 5,252,631,775.26

Guaranteed loan 1,374,378,896.71 1,953,423,601.39 ①②③④

Mortgage loan 274,782,127.35 373,503,928.32 ⑤⑥⑦⑧

Total 6,390,592,056.27 7,579,559,304.97

① The Company provides joint and several liability guarantee at the maximum amount for the
short-term borrowings totaling RMB909,577,438.35 to its subsidiaries Yibin Smart, Anhui Konka,
Dongguan Konka, Jiangxi Konka, Jiangxi High-permeability Substrate, Xinfeng Microcrystalline,
272
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Anhui Tong giường, Boluo Precision, Konka Xinyun, Electronic Technology.
② The Company has obtained short-term borrowings amounting to RMB410,486,597.23 from
Shenzhen Chegongmiao Sub-branch of China Everbright Bank Co., Ltd., for which the Company's
subsidiary Electronics Technology provides joint and several liability guarantee at the maximum
amount.
③ The Company's subsidiary Ningbo Khr Electric Appliance Co., Ltd. has obtained short-term
borrowings amounting to RMB50,364,861.13 from Cixi Branch of Bank of China Limited, for
which the Company and Korea Electric Group Co., Ltd. provide joint and several liability
guarantee at the proportion of 3:2, respectively.
④ The Company's subsidiary Konka Ventures has obtained short-term borrowings amounting to
RMB3,950,000 from Shenzhen Branch of Bank of Hangzhou Co., Ltd., for which Shenzhen
Qianhai Datang Technology Co., Ltd. provides general guarantee.
⑤ The Company's subsidiary Anhui Konka has obtained short-term borrowings amounting to
RMB120,736,113.45 from Chuzhou Branch of Bank of China Limited, for which it provides fixed
assets of a carrying value of RMB414,886,007.46 and land use rights of a carrying value of
RMB35,866,497.33 as mortgage.
⑥ The Company's subsidiary XingDa HongYe has obtained short-term borrowings amounting to
RMB94,095,305.57 from Fusha Sub-branch of Zhongshan Rural Commercial Bank, for which it
provides properties and buildings of a carrying value of RMB30,836,709.44 and land use rights of
a carrying value of RMB13,112,683.07 as mortgage and certificates of time deposit with a
carrying value of RMB19,800,000.00 as pledge, and Hu Zehong provides joint and several
liability guarantee.
⑦The Company's subsidiary Jiangsu Konka Smart has obtained short-term borrowings amounting
to RMB30,040,791.66 from Changzhou Branch of Zheshang Bank Co., Ltd., for which it provides
properties and buildings of a carrying value of RMB35,470,487.60 and land use rights of a
carrying value of RMB13,746,913.56 as mortgage.
⑧The Company's subsidiary Anhui Tong giường has obtained short-term borrowings amounting
to RMB29,909,916.67 from Hefei Branch of Zheshang Bank Co., Ltd., for which it provides
properties and buildings of a carrying value of RMB140,196,525.72 and land use rights of a
carrying value of RMB17,455,478.16 as mortgage.
(2) Outstanding Short-term borrowings overdue
There were no outstanding short-term borrowings overdue at the end of the current year.
27. Notes payable

Type of note Closing balance Opening balance

Banker's acceptance 786,833,882.36 881,426,104.13

Commercial acceptance draft 203,649,044.84 173,147,717.91

Total 990,482,927.20 1,054,573,822.04

28. Accounts payable

Item Closing balance Opening balance

Within one year 2,002,263,324.19 2,330,698,958.02


273
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Item Closing balance Opening balance

One to two years 448,060,250.16 155,636,729.60

Two to three years 107,371,417.74 89,142,446.14

Over three years 169,136,683.88 84,468,429.17

Total 2,726,831,675.97 2,659,946,562.93

29. Accounts received in advance

Type of note Closing balance Opening balance

Rents 825.69

Total 825.69

30. Contract liabilities
( 1 ) Contract liabilities

Item Closing balance Opening balance

Sales advances received 527,975,160.12 601,044,358.35

Total 527,975,160.12 601,044,358.35

Note: Contractual liabilities over one year are detailed in "VI.43. Other non-current liabilities" in
this note.
( 2 ) Significant contract liabilities with an age of more than one year
There were no significant contract liabilities with an age of more than one year in the Reporting
Period.
( 3 ) Significant changes in carrying value in the current year
There were no significant changes in carrying value in the current year.
31. Payroll payable
( 1 ) List of payrolls payable

Increase in the Decrease in the
Item Opening balance Closing balance
current year current year

Short-term
343,646,678.61 1,546,370,655.06 1,587,111,050.24 302,906,283.43
remuneration

Post-employment
benefits-defined 4,600,603.98 119,716,518.08 123,332,621.86 984,500.20
contribution plans

Dismissal benefits 360,921.46 18,945,372.20 18,463,973.66 842,320.00

Other benefits due
within one year


274
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Increase in the Decrease in the
Item Opening balance Closing balance
current year current year

Total 348,608,204.05 1,685,032,545.34 1,728,907,645.76 304,733,103.63

( 2 ) Short-term remuneration

Increase in the Decrease in the
Item Opening balance Closing balance
current year current year

Salaries, bonuses,
allowances and 334,684,052.90 1,356,418,260.49 1,398,283,059.07 292,819,254.32
subsidies

Employee benefits 3,936,505.74 61,452,893.58 60,035,067.05 5,354,332.27

Social insurance
1,058,903.83 55,338,539.08 55,832,481.16 564,961.75
premiums

Including: Medical
542,052.97 49,767,939.00 49,913,269.76 396,722.21
insurance premiums

Work injury
258,547.07 3,459,232.15 3,640,666.28 77,112.94
insurance premiums

Maternity
258,303.79 2,111,367.93 2,278,545.12 91,126.60
insurance premiums

Housing fund 302,288.94 60,035,362.19 59,851,639.16 486,011.97

Labour union funds
2,815,551.22 13,052,979.72 12,186,807.82 3,681,723.12
and education funds

Short-term absence
with payment

Short-term profit
sharing plan

Others 849,375.98 72,620.00 921,995.98

Total 343,646,678.61 1,546,370,655.06 1,587,111,050.24 302,906,283.43

( 3 ) Defined contribution plans

Increase in the Decrease in the
Item Opening balance Closing balance
current year current year

Basic endowment
management 4,410,027.51 116,179,833.58 119,754,395.92 835,465.17
insurance

Unemployment
190,576.47 3,536,684.50 3,578,225.94 149,035.03
insurance premiums

Annuity contribution


275
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Increase in the Decrease in the
Item Opening balance Closing balance
current year current year

Total 4,600,603.98 119,716,518.08 123,332,621.86 984,500.20

32. Taxes payable

Item Closing balance Opening balance

Corporate income tax 91,733,192.66 178,994,811.66

Value-added tax 66,607,505.30 60,178,835.36

Fund for disposing abandoned appliances
21,210,465.50 14,716,729.00
and electronic products

Land use tax 11,704,493.10 11,028,106.31

Stamp duty 6,782,263.86 9,955,063.53

Property tax 5,219,025.56 4,511,721.21

City construction and maintenance tax 3,479,642.26 3,710,919.05

Education fees and local education
2,525,463.27 2,735,721.75
Surcharge

Personal income tax 2,285,063.65 2,477,590.24

Tariff 1,513,377.11 1,624,434.41

Others 1,356,643.60 1,168,746.84

Total 214,417,135.87 291,102,679.36

33. Other payables

Item Closing balance Opening balance

Interest payable 29,590,464.00

Other payables 1,922,791,905.14 1,866,120,909.34

Total 1,922,791,905.14 1,895,711,373.34

33.1 Interests payable

Item Closing balance Opening balance

Interest on corporate bonds

Interest on long-term borrowings with
interest paid by instalment and principal 29,271,307.22
paid at maturity



276
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Item Closing balance Opening balance

Interest payable on short-term borrowings 319,156.78

Total 29,590,464.00

33.2 Other Payables
( 1 ) Other accounts payable presented based on the fund nature

Nature of fund Closing balance Opening balance

Trading funds 798,553,216.65 677,014,483.12

Expenses payable 521,810,773.58 538,693,780.45

Related party borrowing 236,064,633.74 286,552,967.74

Cash deposit and front 282,035,338.52 286,952,679.25

Advance payment 5,480,880.33 5,482,995.92

Equity payable 24,302,796.96 6,302,796.96

Others 54,544,265.36 65,121,205.90

Total 1,922,791,905.14 1,866,120,909.34

( 2 ) Significant other accounts payable with an age of more than one year or overdue

Reason for non-repayment or
Unit Closing balance
carry-over

The Third Construction Engineering
It was not yet due for payment as
Company Ltd. of China Construction 21,677,760.25
per the contract
Second Engineering Bureau

Total 21,677,760.25

34. Non-current liabilities due within one year

Item Closing balance Opening balance

Long-term borrowings due within one
2,891,407,222.55 249,391,640.39
year

Long-term payables due within one year 141,650.44 139,213,550.70

Bonds payable due within one year 2,370,572,421.45

Lease liabilities due within one year 52,026,101.92 20,614,839.60

Total 5,314,147,396.36 409,220,030.69

35. Other current liabilities

277
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Item Closing balance Opening balance

Accounts payable paid by endorsement
of outstanding notes at the end of the 11,524,075.93 26,744,560.49
Reporting Period

Tax to be charged off 23,890,662.41 21,806,789.93

Refunds payable 18,915,977.41 19,898,433.29

Total 54,330,715.75 68,449,783.71

36. Long-term loans

Type of borrowings Closing balance Opening balance Notes

Guaranteed loan 4,047,706,381.39 3,116,984,312.66 ①②③④⑤⑥⑦⑧

Mortgage loan 1,207,161,686.81 849,816,227.52 ⑨⑩

Entrusted borrowings 2,054,850,296.35 2,595,372,200.43 

Unsecured loan 3,276,240,462.52 2,536,925,213.87

Pledge loan 84,598,475.36 57,225,088.80 

Less: Portion due within one
2,891,407,222.55 249,391,640.39
year

Total 7,779,150,079.88 8,906,931,402.89

① The Company has obtained long-term borrowings amounting to RMB1,484,131,000.00 from
Shenzhen Branch of China Guangfa Bank Co., Ltd., the term of which is from 24 June 2021 to 20
December 2026, and for which the Company's parent company OCT Group provides joint and
several liability guarantee at the maximum amount.
② The Company has obtained long-term borrowings amounting to RMB1,441,235,638.84 from
Shenzhen Branch of China Development Bank Co., Ltd., the term of which is from 22 December
2022 to 22 September 2026, and for which the Company's parent company OCT Group provides
joint and several liability guarantee at the maximum amount.
③ The Company has obtained long-term borrowings amounting to RMB900,902,777.77 from the
Export-Import Bank of China, the term of which is from 22 June 2022 to 21 June 2024, and for
which the Company's parent company OCT Group provides joint and several liability guarantee at
the maximum amount.
④ The Company's subsidiary Anhui Konka has obtained long-term borrowings amounting to
RMB100,114,583.34 from Chuzhou Plaza Sub-branch of China Construction Bank Co., Ltd., the
term of which is from 24 October 2022 to 26 October 2026, and for which the Company provides
joint and several liability guarantee.
⑤The Company's subsidiary Anhui Konka has obtained long-term borrowings amounting to
RMB9,857,131.44 from Chuzhou Branch of Agricultural Bank of China Co., Ltd., the term of
which is from 29 June 2023 to 28 June 2028, and for which the Company provides joint and
several liability guarantee.

278
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
⑥ The Company's subsidiary Anhui Tong giường has obtained long-term borrowings amounting
to RMB30,018,000.00 from Chuzhou Branch of China Everbright Bank Co., Ltd., the term of
which is from 26 December 2023 to 25 June 2025, and for which the Company provides joint and
several liability guarantee at the maximum amount.
⑦ The Company's subsidiary Konka Xinyun Semiconductor has obtained long-term borrowings
amounting to RMB51,375,000.00 from Yancheng Branch of Huaxia Bank Co., Ltd., the term of
which is from 10 September 2021 to 21 August 2026, and for which the Company provides joint
and several liability guarantee.
⑧ The Company's subsidiary Sichuan Konka has obtained long-term borrowings amounting to
RMB30,072,250.00 from Yibin Rural Commercial Bank Co. Ltd., the term of which is from 23
May 2023 to 26 April 2026, and for which the Company provides joint and several liability
guarantee.
⑨ The Company has obtained long-term borrowings amounting to RMB334,321,190.06 from
Guanlan Sub-branch of Shenzhen Rural Commercial Bank Co., Ltd., the term of which is from 21
January 2021 to 22 January 2026, and for which it provides land use rights of a carrying value of
RMB4,343,453.05 and investment properties of a carrying value of RMB585,984,804.04 and
properties and buildings of a carrying value of RMB63,063,516.77 as mortgage.
⑩ The Company's subsidiary Anhui Konka has obtained long-term borrowings amounting to
RMB86.027,129.81 from Chuzhou Branch of Industrial Bank Co., Ltd., the term of which is from
16 July 2021 to 15 July 2031, and for which it provides fixed assets of a carrying value of
RMB186,407,052.14 and land use rights of a carrying value of RMB18,007,218.67 as mortgage,

The Company's subsidiary Dongguan Konka has obtained long-term borrowings amounting to
and for which the Company provides joint and several liability guarantee.

RMB332,193,383.84 from Dongguan Fenggang Sub-branch of Agricultural Bank of China Co.,
Ltd., the term of which is from 23 June 2021 to 21 October 2030, and for which it provides land
use rights as intangible assets of a carrying value of RMB185,832,462.67 as mortgage and the

The Company's subsidiary Frestec Smart Home has obtained long-term borrowings
Company provides joint and several liability guarantee.

amounting to RMB10,012,222.22 from Xinxiang Jiankang Road Sub-branch of China CITIC
Bank Corporation Limited, the term of which is from 27 October 2022 to 4 May 2030, and for
which it provides land use rights of a carrying value of RMB90,267,954.17 as mortgage and the
Company as well as Meng Honggang, the legal person of Chuzhou Hanshang Electric Appliance
Co., Ltd., provide joint and several liability guarantee at the maximum amount at 51% and 49%,

The Company's subsidiary Nantong Kanghai has obtained long-term borrowings amounting to
respectively.

RMB22,973,942.90 from Haimen Sub-branch of Bank of Suzhou Co., Ltd., the term of which
from 24 April 2023 to 25 July 2025, and for which it provides land use rights and construction in

The Company's subsidiary Shanxi Konka Intelligent has obtained long-term borrowings
progress of a carrying value of RMB243,293,655.61 as mortgage.

amounting to RMB250,275,000.00 from Shanxi Free Trade Zone Xi'an International Port Area
Sub-branch of Industrial and Commercial Bank of China Co., Ltd., the term of which is from 28
September 2023 to 3 November 2033, and for which it provides properties and buildings of a
carrying value of RMB321,704,287.16 and land use rights of a carrying value of

The Company's subsidiary Xi'an Kanghong Technology Industry has obtained long-term
RMB121,439,312.85 as mortgage.

borrowings amounting to RMB66,594,605.06 from the Business Department of Shanxi Branch of
Bank of Communications Co., Ltd., the term of which is from 15 June 2023 to 31 December 2032,
and for which it provides properties and buildings and land use rights of a carrying value of
279
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
RMB306,501,842.35 as mortgage and the Company provides joint and several liability guarantee

The Company's subsidiary Yantai Kangjin has obtained long-term borrowings amounting to
at the maximum amount.

RMB11,867,561.07 from Yantai Rural Commercial Bank Co. Ltd., the term of which is from 16
January 2023 to 12 February 2026, and for which it provides construction in progress of a carrying

The Company's subsidiary Chongqing Konka has obtained long-term borrowings amounting
value of RMB40,629,663.23 as mortgage.

to RMB92,896,651.85 from Chongqing Liang gian g Branch of Industrial and Commercial Bank of
China Co., Ltd., the term of which is from 30 December 2022 to 29 December 2037, and for
which it provides properties and buildings of a carrying value of RMB337,145,406.93 and land
use rights of a carrying value of RMB44,585,522.54 as mortgage and the Company provides joint

The Company's parent company OCT Group has extended entrusted loans amounting to
and several liability guarantee at the maximum amount.

RMB2,054,850,296.35 to the Company through China Merchants Bank Co., Ltd., the term of

The Company's subsidiary Yibin Kangrun Medical has obtained long-term borrowings
which is from 10 January 2022 to 25 May 2025.

amounting to RMB49,506,950.32 from Yibin Branch of Industrial and Commercial Bank of China
Co., Ltd. with the accounts receivable arising from the prospective earnings from a franchise
agreement with an appraisal value of RMB595,900,000 as pledge, and the term thereof is from 30

The Company's subsidiary Yibin Kangrun Medical has obtained long-term borrowings
June 2022 to 15 April 2040.

amounting to RMB35,091,525.04 from Yibin Branch of Postal Savings Bank of China Co., Ltd.
with the accounts receivable arising from the prospective earnings from a franchise agreement
with an appraisal value of RMB595,900,000 as pledge, and the term thereof is from 30 June 2022
to 15 April 2040.
37. Bonds payable
(1) List of Bonds Payable

Item Closing balance Opening balance

Corporate bonds 4,797,565,000.12 4,792,392,044.13

Less: Bonds payable due within one year 2,370,572,421.45

Total 2,426,992,578.67 4,792,392,044.13

(2) Changes in bonds payable

Bond
Bond name Total par value Issue date Issue amount Opening balance
maturity

21Konka01 8 January Three
1,000,000,000.00 996,500,000.00 1,042,632,148.95
(note a)) 2021 years

21Konka02 Three
500,000,000.00 21 May 2021 498,250,000.00 511,544,025.20
(note b)) years

21Konka03 Three
800,000,000.00 9 July 2021 797,200,000.00 813,864,800.79
(note c)) years

22Konka01 Three
1,200,000,000.00 14 July 2022 1,195,800,000.00 1,216,078,113.18
(note d)) years

280
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Bond
Bond name Total par value Issue date Issue amount Opening balance
maturity

22Konka03 8 September Three
600,000,000.00 597,900,000.00 604,838,993.73
(note e)) 2022 years

22Konka05 18 October Three
600,000,000.00 597,900,000.00 603,433,962.28
(note f)) 2022 years

Total 4,700,000,000.00 4,683,550,000.00 4,792,392,044.13

(Continued)

Issuance in the current Accrue interest by Amortisation of
Bond name
year par value premium/discount

21Konka01 (note a)) 44,600,000.00 1,100,628.93

21Konka02 (note b)) 20,000,000.00 550,314.47

21Konka03 (note c)) 31,600,000.00 880,503.14

22Konka01 (note d)) 38,760,000.00 1,320,754.73

22Konka03 (note e)) 19,800,000.00 660,377.36

22Konka05 (note f)) 21,000,000.00 660,377.36

Total 175,760,000.00 5,172,955.99

(Continued)

Bond name Prepayment in the current year Closing balance

21Konka01 (note a)) 44,600,000.00 1,043,732,777.88

21Konka02 (note b)) 20,000,000.00 512,094,339.67

21Konka03 (note c)) 31,600,000.00 814,745,303.93

22Konka01 (note d)) 38,760,000.00 1,217,398,867.91

22Konka03 (note e)) 19,800,000.00 605,499,371.09

22Konka05 (note f)) 21,000,000.00 604,094,339.64

Total 175,760,000.00 4,797,565,000.12

Note a: On 8 January 2021, the Company issued RMB1 billion of private placement corporate
bonds with the duration of three years, the annual interest rate of 4.46% and the due date of 8
January 2024.
Note b: On 21 May 2021, the Company issued RMB500 million of private placement corporate
bonds with the duration of three years, the annual interest rate of 4.00% and the due date of 21
May 2024.
Note c: On 9 July 2021, the Company issued RMB800 million of private placement corporate
bonds with the duration of three years, the annual interest rate of 3.95% and the due date of 9 July
2024.
Note d: On 14 July 2022, the Company issued RMB1.2 billion of public placement corporate
281
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
bonds with the duration of three years, the annual interest rate of 3.23% and the due date of 14
July 2025.
Note e: On 8 September 2022, the Company issued RMB600 million of private placement
corporate bonds with the duration of three years, the annual interest rate of 3.30% and the due date
of 8 September 2025.
Note f: On 18 October 2022, the Company issued RMB600 million of private placement corporate
bonds with the duration of three years, the annual interest rate of 3.50% and the due date of 18
October 2025.
Note 2: OCT Group provided full-amount, unconditional and irrevocable joint and several
liabilities guarantee for the due payment of the public and private offering of corporate bonds.
38. Lease liabilities

Item Closing balance Opening balance

Lease liabilities 212,244,920.84 57,201,478.76

Less: Lease liabilities due within one year (see
52,026,101.92 20,614,839.60
Note VI-34)

Total 160,218,818.92 36,586,639.16

39. Long-term payables

Item Closing balance Opening balance

Accrued financing lease outlay 6,823,209.13 152,547,691.61

Less: Unrecognised financing expenses 545,824.62 5,370,013.73

Less: Amount due within one year (see Note VI-
141,650.44 139,213,550.70
34)

Total 6,135,734.07 7,964,127.18

40. Long-term payroll payables

Item Closing balance Opening balance

Termination benefits-net liabilities of defined
4,718,466.37 4,894,209.73
contribution plans

Total 4,718,466.37 4,894,209.73

41. Estimated liabilities

Item Closing balance Opening balance Cause(s)

Pending litigation 206,591.51 206,591.51

Discard expenses 1,644,068.13 1,875,064.89

After-sales of household
Product quality assurance 101,726,574.07 74,590,486.63
appliances

282
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Item Closing balance Opening balance Cause(s)

Performance compensation 200,942,606.09 82,723,436.52

Total 304,519,839.80 159,395,579.55




283
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
42. Deferred revenue
( 1 ) Category of deferred income

Increase in the current Decrease in the current
Item Opening balance Closing balance Cause(s)
year year

Government grants 334,844,966.31 142,412,107.74 52,121,836.15 425,135,237.90 Related to assets/income

Total 334,844,966.31 142,412,107.74 52,121,836.15 425,135,237.90

( 2 ) Government subsidy items

Amount
Amount
Subsidies recognised as
recognised as Related to
Government subsidy items Opening balance increased in the non-operating Other changes Closing balance
other income in assets/income
current year income in the
the current year
current year

Headquarters 8K device-side
23,800,000.00 1,375,077.60 22,424,922.40 Related to assets
R&D project of Konka Group

Subsidy for electronic relocation
13,085,700.00 10,000,000.00 3,085,700.00 Related to assets
of Anhui Konka

Plant construction subsidy for
105,864,968.77 2,319,532.32 103,545,436.45 Related to assets
Yibin Konka Industrial Park

Plant decoration subsidy for
11,513,723.80 1,439,215.44 10,074,508.36 Related to assets
Yibin Konka Industrial Park

Equipment subsidy for Konka
Related to
Xinyun Semiconductor 10,596,031.61 899,350.08 9,696,681.53
income
(Yancheng)

284
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Amount
Amount
Subsidies recognised as
recognised as Related to
Government subsidy items Opening balance increased in the non-operating Other changes Closing balance
other income in assets/income
current year income in the
the current year
current year

Returned payments for land by
18,327,272.79 392,727.24 17,934,545.55 Related to assets
Chongqing Konka

Medical waste centralised
treatment project in Gaoxian 28,405,837.81 2,500,000.00 1,754,887.71 29,150,950.10 Related to assets
County, Yibin City

Other government subsidies Related to
123,251,431.53 139,912,107.74 30,855,345.76 232,308,193.51
related to assets/income assets/income

Total 334,844,966.31 142,412,107.74 49,036,136.15 -3,085,700.00 425,135,237.90




285
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
43. Other non-current liabilities

Item Closing balance Opening balance

Contract liabilities over one year 179,996,351.33 314,233,260.08

Total 179,996,351.33 314,233,260.08

44.Share capital

Increase/decrease (+/-) in the current year

Item Opening balance Bonus Closing balance
New
Bonus issue
shares Others Subtotal
issue from
issued
profit

Total shares 2,407,945,408.00 2,407,945,408.00

45.Capital reserves

Item Opening Increase in the Decrease in the Closing balance
balance current year current year

Other capital surplus 365,247,361.05 188,738,008.44 27,485,862.73 526,499,506.76

Total 365,247,361.05 188,738,008.44 27,485,862.73 526,499,506.76

Note: Capital surplus for the Reporting Period--other capital surplus increase and decrease due to
the main reasons:
a) The associated enterprise Wuhan Tianyuan Environmental Protection Co., Ltd. issued new
shares and convertible bonds, resulting in an increase in other capital surplus of
RMB127,671,222.93.
b) The financing and equity incentives of the associated enterprise Hefei KONSEMI Storage
Technology Co., Ltd. resulted in an increase in other capital surplus of RMB44,092,024.98.
c)The associated enterprise Shenzhen Kangying Semiconductor Technology Co., Ltd. increased
capital and shares, resulting in an increase in other capital surplus of RMB16,852,760.53.
d) The associated enterprise Guangdong Kangyuan Semiconductor Co., Ltd. increased capital and
shares, resulting in an increase in other capital surplus of RMB122,000.00.
e) Other capital surplus decreased by RMB17,433,984.73 as a result of the disposal of an associate,
Guangdong Chutian Dragon Smart Card Co., Ltd., and the change in its accounting method.
Among them, other capital surplus recognized under the former equity method of accounting was
transferred out when the equity interest held by Guangdong Chutian Dragon Smart Card Co., Ltd.
was changed from equity method of accounting to financial asset accounting, resulting in a
decrease of other capital surplus by RMB13,777,882.20; and a decrease of other capital surplus by
RMB3,656,102.53 due to the disposal of equity interest in Guangdong Chutian Dragon Smart
Card Co., Ltd..
f) Repurchase of equity interests for equity incentive by the associated enterprise Chongqing
E2info Technology Co., Ltd. resulted in a decrease in other capital surplus of RMB 5,977,391.99.
g) The decrease in capital surplus and special reserve of the associated enterprise Shandong Econ
Technology Co., Ltd. resulted in a decrease in other capital surplus of RMB4,074,486.01.
286
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
46.Other comprehensive income

Beginning of the year Amount incurred in the current year End of the year

Less: Amount recognised Less: Amount recognised
Item as other comprehensive as other comprehensive Attributable to Attributable to
Amount incurred Less:
income in the previous income in the previous the parent minority
Balance before income tax Income tax Balance
period and transferred to period and transferred to company after shareholders
in the current year expense
profit or loss in the retained earnings in the tax after tax
Reporting Period Reporting Period

I. Other comprehensive
income that cannot be
-6,398,878.20 -6,398,878.20
reclassified as profits or
losses

Changes in the fair value of
other equity instrument -6,398,878.20 -6,398,878.20
investments

Others

II. Other comprehensive
income reclassified as -7,866,303.43 -84,979.37 821,623.19 -906,602.56 -7,044,680.24
profits and losses

Including: Other
comprehensive income that
can be transferred to profits -4,029,937.27 -86,041.63 -86,041.63 -4,115,978.90
or losses under the equity
method

Exchange difference on
translating foreign -3,836,366.16 1,062.26 907,664.82 -906,602.56 -2,928,701.34
operations

Total of other
-14,265,181.63 -84,979.37 821,623.19 -906,602.56 -13,443,558.44
comprehensive income

287
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
47.Special reserve

Increase in the Decrease in the
Item Opening balance Closing balance
current year current year

Safety production fund 5,509,215.43 851,727.19 4,657,488.24

Total 5,509,215.43 851,727.19 4,657,488.24

48.Surplus reserves

Increase in the Decrease in the
Item Opening balance Closing balance
current year current year

Statutory surplus
1,005,961,774.19 1,005,961,774.19
reserves

Discretionary
238,218,590.05 238,218,590.05
surplus reserves

Total 1,244,180,364.24 1,244,180,364.24

49.Unappropriated profit

Item The current year Last year

Balance as at the end of last year 3,637,291,770.33 5,229,098,788.94

Add: Total beginning balance of retained earnings before
1,060,258.69
adjustments

Including: Changes in accounting policies 1,060,258.69

Opening balance of current year 3,638,352,029.02 5,229,098,788.94

Add: Net profit attributable to owners of the parent
-2,163,790,053.17 -1,471,409,748.21
company in the current year

Less: Appropriation of statutory surplus reserves

Ordinary share dividends payable 120,397,270.40

Closing balance of the current year 1,474,561,975.85 3,637,291,770.33

50.Operating revenue and cost of sales
( 1 ) Operating income and operating costs

Amount incurred in the current year Amount incurred last year
Item
Income Cost Income Cost

Principal
16,951,243,781.74 16,397,488,134.14 28,607,497,919.19 28,075,348,270.98
business

Other 898,087,647.50 751,548,616.36 1,000,356,336.08 713,290,122.90

288
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Item Amount incurred in the current year Amount incurred last year
business

Total 17,849,331,429.24 17,149,036,750.50 29,607,854,255.27 28,788,638,393.88

( 2 ) Information on the breakdown of operating revenue and cost of sales

Category of contracts Operating income Operating expenses

Business type

Of which: Colour TV business 4,708,450,488.99 4,756,604,973.05

Consumer appliances business 4,257,423,386.71 3,790,414,584.40

Memory chip trading and
3,397,161,542.60 3,433,148,164.76
semiconductor business

Environmental protection and new
1,145,732,124.31 1,134,022,493.39
materials business

PCB business 476,456,155.62 420,480,569.60

Other business 3,864,107,731.01 3,614,365,965.30

Total 17,849,331,429.24 17,149,036,750.50

Classified by operating region

Of which: Domestic 10,716,944,822.00 10,283,636,801.86

Overseas 7,132,386,607.24 6,865,399,948.64

Total 17,849,331,429.24 17,149,036,750.50

Note: According to the adjustment and optimization of our group's business layout, the storage
chip processing trade in the industrial and trade business will be adjusted to the storage chip trade
and semiconductor business, and the other parts will be merged into others.
( 3 ) Information in relation to the trade price apportioned to the residual contract
performance obligation
The amount of revenue corresponding to performance obligations that have been contracted but
have not yet been fulfilled or completed at the end of the year is RMB737,878,491.32, of which
RMB666,987,130.93 is expected to be recognised as revenue in 2024, and the remaining
RMB70,891,360.39 is expected to be recognised as revenue in 2025 and following years.
51.Taxes and surcharges

Amount incurred in the
Item Amount incurred last year
current year

Stamp duty 34,773,519.65 39,436,591.84

Land use tax 20,537,445.82 27,096,008.05


289
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Amount incurred in the
Item Amount incurred last year
current year

Property tax 31,766,475.03 25,401,754.51

City maintenance & construction tax 9,421,882.52 14,998,902.21

Educational surcharge 4,271,078.25 6,410,329.82

Local educational surcharge 2,847,868.04 4,993,164.43

Water resources fund 935,650.62 590,860.27

Others 934,120.54 412,208.88

Total 105,488,040.47 119,339,820.01

52.Selling expenses

Amount incurred in the
Item Amount incurred last year
current year

Employee benefits 374,259,567.43 349,085,455.73

Advertising expense 233,506,458.32 362,795,424.61

Warranty fee 167,413,447.59 162,483,458.52

Promotional activities 144,332,006.20 132,984,672.13

Logistic Fee 78,886,050.69 76,005,945.85

Travel expenses 21,297,750.22 16,412,701.43

Lease expense 12,330,023.91 20,000,782.87

Entertainment fees 12,054,482.82 12,319,781.49

Exhibition expenses 18,344,007.57 3,049,900.87

Taxes and fund 634,083.90 43,602,463.99

Others 82,066,970.31 61,404,148.28

Total 1,145,124,848.96 1,240,144,735.77

53.Administration expenses

Amount incurred in the
Item Amount incurred last year
current year

Employee benefits 442,241,850.70 536,410,042.48

Depreciation charges 221,920,806.29 181,356,034.20



290
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Amount incurred in the
Item Amount incurred last year
current year

Intermediary fees 27,526,556.25 70,364,121.16

Travel expenses 11,896,505.16 11,799,889.35

Water and electricity expenses 9,399,817.49 15,251,139.78

Loss on scraping of inventories 2,768,674.29 5,066,889.35

Patent fee 273,797.86 369,573.26

Others 91,499,902.16 129,029,900.70

Total 807,527,910.20 949,647,590.28

54.R&D expense

Amount incurred in the
Item Amount incurred last year
current year

Salary 271,425,739.22 291,536,802.63

Depreciation and amortisation charge 109,324,146.88 76,242,059.21

New product trial production expense 37,107,469.57 53,488,226.67

Material expense 29,602,114.38 38,872,892.09

Commission service fee 4,452,755.80 13,376,731.07

Testing expense 5,899,826.42 4,302,928.77

Information use fee 313,299.20 918,800.49

Others 39,868,408.39 65,143,583.96

Total 497,993,759.86 543,882,024.89

55.Finance costs

Amount incurred in the
Item Amount incurred last year
current year

Interest expense 884,535,066.01 913,721,408.10

Less: Interest income 286,969,209.86 237,115,652.09

Add: Exchange loss -72,904,637.81 -198,292,207.05

Other expenses 37,354,891.90 44,110,194.22

Total 562,016,110.24 522,423,743.18

56.Other income
291
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Amount incurred in the
Resources Amount incurred last year
current year

Support funds 147,251,929.00 695,511,711.98

Rewards and subsidies 62,683,717.05 138,985,910.13

Transfer of deferred income 49,036,136.15 29,108,950.31

Software tax refund 5,819,853.78 12,377,884.09

Post subsidies 3,523,345.06 5,205,565.67

Subsidies for L/C exports 2,231,210.76 348,111.95

Tax rebates and refunds 71,840.14 47,174,366.68

Total 270,618,031.94 928,712,500.81

57.Investment income

Amount incurred in the
Item Amount incurred last year
current year

Returns on long-term equity investments
-170,413,352.22 123,392,731.97
calculated by the equity method

Return on investment arising from the
195,999,095.98 509,249,136.96
disposal of long-term equity investments

Conversion of long-term equity investments
accounted for by the equity method to 574,780,174.75
financial assets

Investment income arising from the disposal
560,005.44
of other equity instruments investments

Income from remeasurement of residual stock
51,474,909.15 239,092,139.68
rights at fair value after losing control power

Interest income from debt investments during
56,292,758.87 69,651,317.87
the holding period

Return on investment in the financial assets
9,383,976.00
held for trading during the holding period

Income from the derecognition of financial
-3,132,035.83
assets at amortized cost

Investment income from disposal of financial
-38,708,152.12 -5,378,929.04
assets at fair value through profit or loss

Others -832,158.49

Total 675,405,221.53 936,006,397.44

58.Income from changes in the fair value
292
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Sources of income from changes in the fair Amount incurred in the
Amount incurred last year
value current year

Financial assets at fair value through profit or
-16,629,916.60 4,560,753.18
loss

Estimated performance compensation -81,307,994.29 -45,292,086.72

Total -97,937,910.89 -40,731,333.54

59.Credit impairment loss

Amount incurred in the
Item Amount incurred last year
current year

Bad debt loss of notes receivable 6,971,440.21 4,405,405.84

Bad debt loss of accounts receivable -209,233,746.63 -437,154,564.05

Bad debt loss of other accounts receivable -254,340,694.42 -517,135,861.32

Total -456,603,000.84 -949,885,019.53

60.Impairment losses on assets

Amount incurred in the
Item Amount incurred last year
current year

Inventory depreciation loss and contract
-371,733,599.86 -156,563,428.63
performance cost impairment loss

Impairment loss of long-term equity
-106,783,838.90
investments

Impairment loss of construction in progress -41,422,211.82 -63,705,515.70

Impairment loss on fixed assets -40,607,700.40 -71,089,375.71

Contractual asset impairment loss -45,614.41

Impairment loss of intangible assets -4,037,532.29

Total -560,592,965.39 -295,395,852.33

61.Impairment losses on assets ( "-" indicates loss)

Amount recorded
Amount incurred in Amount incurred into the non-
Item
the current year last year recurring profit or
loss of current year

Incomes from disposal of held-for-
sale assets

Incomes from disposal of non-current
54,321.20 9,580,708.29 54,321.20
assets

293
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Amount recorded
Amount incurred in Amount incurred into the non-
Item
the current year last year recurring profit or
loss of current year

Including: incomes from disposal of
non-current assets not classified as 54,321.20 9,580,708.29
held-for-sale assets

Including: Fixed assets disposal
-8,803,043.13 -2,675,226.73 -8,803,043.13
income

Intangible assets disposal income 8,559,461.64 12,241,030.45 8,559,461.64

Income from disposal of
-321,592.91 -321,592.91
construction in progress

Right-of-use assets disposal
619,495.60 14,904.57 619,495.60
income

Income from non-monetary assets
exchange

Income from disposal of non-current
assets in debt restructuring

Total 54,321.20 9,580,708.29 54,321.20

62.Non-operating income
( 1 ) List of Non-operating Income

Amount recorded
Amount incurred in Amount incurred into the non-
Item
the current year last year recurring profit or
loss of current year

Write-off of current accounts 12,652,519.62 25,490,345.11 12,652,519.62

Compensation and penalty income 6,981,587.26 21,714,054.35 6,981,587.26

Non-current assets damage and
15,390.13 917,512.09 15,390.13
retirement gains

Income from performance
72,653,782.00
compensation

Others 6,613,575.48 4,363,348.45 6,613,575.48

Total 26,263,072.49 125,139,042.00 26,263,072.49

( 2 ) Government subsidies recorded in profit or loss of the current year
The Company had no government subsidies recorded in profit or loss in the current year
63. Non-operating expenses



294
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Amount recorded
Amount of current Amount of last into the non-
Item
year year recurring profit or
loss of current year

Performance compensation 74,344,977.85 37,431,349.80 74,344,977.85

Losses on damage and scraping of
4,072,756.52 3,340,817.47 4,072,756.52
non-current assets

Compensation expense 3,945,526.50 3,369,768.80 3,945,526.50

Unusual loss on inventory 148,669,068.79

Others 74,322,594.16 31,913,240.98 74,322,594.16

Total 156,685,855.03 224,724,245.84 156,685,855.03

64.Income tax expense
( 1 ) Income tax expense

Amount incurred in the current
Item Amount incurred last year
year

Income tax expense in the current
58,328,317.21 155,149,364.07
year

Deferred income tax expense -139,776,731.85 -453,448,871.15

Total -81,448,414.64 -298,299,507.08

( 2 ) Adjustment process of accounting profits and income tax expenses

Item Amount incurred in the current year

Total consolidated profit in the current year -2,717,335,075.98

Income tax expense calculated at legal/applicable tax rate -679,333,769.00

Impact of different tax rates applied by subsidiaries 106,438,303.57

Impact of income tax in the periods before adjustment -879,334.46

Impact of non-taxable income 27,215,138.64

Impacts of non-deductible costs, expenses, and losses 8,887,343.81

Impact of using deductible losses on the deferred tax assets not
126,332,523.09
recognised previously

Impact of deductible temporary differences or deductible
377,683,927.23
losses of deferred tax assets not recognised in the current year

Changes in the balance of deferred income tax assets/
-73,940.46
liabilities in previous period due to adjustment of tax rate

295
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Item Amount incurred in the current year

Others -47,718,607.06

Income tax expense -81,448,414.64

65.Other comprehensive income
For details, please refer to "Note VI-46 Other comprehensive income".
66.Items in the cash flow statement
( 1 ) Cash related to operating activities
1 ) Other cash received related to operating activities

Amount incurred in the
Item Amount incurred last year
current year

Income from government subsidies 362,725,223.50 1,022,967,081.76

Front money and guarantee deposit 392,830,280.36 259,156,351.64

Trading funds 159,741,742.98 38,841,937.19

Interest income from bank deposits 116,327,870.24 81,268,409.97

Compensation and penalty income 20,504,317.63 13,515,680.81

Others 39,760,244.28 181,337,565.76

Total 1,091,889,678.99 1,597,087,027.13

2 ) Other cash paid related to operating activities

Amount incurred in the
Item Amount incurred last year
current year

Cash payment fee 898,328,046.30 1,284,221,978.23

Deposit and margin 230,032,945.74 428,549,076.52

Payment made on behalf 6,916,151.52 26,621,620.91

Expense for bank handling charges 4,874,263.89 4,742,304.06

Others 165,832,467.23 225,268,008.86

Total 1,305,983,874.68 1,969,402,988.58

( 2 ) Cash related to investment activities
1 ) Significant cash received related to investment activities

Amount incurred in the
Item Amount incurred last year
current year


296
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Amount incurred in the
Item Amount incurred last year
current year

Recovery of loan at call 473,934,626.67 3,860,647,680.07

Total 473,934,626.67 3,860,647,680.07

2 ) Significant cash paid related to investment activities

Item Amount incurred in the Amount incurred last year
current year

Payment of loan at call 310,116,949.03 479,034,898.06

Total 310,116,949.03 479,034,898.06

3 ) Other cash received related to investment activities

Item Amount incurred in the Amount incurred last year
current year

Recovery of loan at call 473,934,626.67 3,860,647,680.07

Cash received from acquisition of
2,000.00
subsidiaries

Others 209,995,119.36 127,885,628.35

Total 683,929,746.03 3,988,535,308.42

4 ) Other cash paid related to investment activities

Item Amount incurred in the Amount incurred last year
current year

Payment of loan at call 310,116,949.03 479,034,898.06

Cash paid for disposal of subsidiaries 840,192.20

Others 218,616,095.75 2,979,556.70

Total 529,573,236.98 482,014,454.76

( 3 ) Cash related to financing activities
1 ) Other proceeds received related to financing activities

Item Amount incurred in the Amount incurred last year
current year

Recovery of margin deposit pledged 570,834,983.98 363,847,783.60

Receiving loan at call 167,370,200.00 161,410,093.19

Others 28,100.03

297
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Item Amount incurred in the Amount incurred last year
current year

Total 738,205,183.98 525,285,976.82

2 ) Other cash paid related to financing activities

Item Amount incurred in the Amount incurred last year
current year

Deposit as margin for pledge 773,184,328.31 378,218,165.91

Cash paid for leases 145,535,542.98 299,950,091.11

Retuning loan at call 79,183,194.53 142,068,831.60

Financing cost 32,222,659.12 37,111,326.66

Others 6,192,899.46 1,816,055.32

Total 1,036,318,624.40 859,164,470.60




298
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
3 ) Changes in liabilities arising from financing activities

Increase in the current year Decrease in the current year
Item Opening balance Closing balance
Cash changes Non-cash changes Cash changes Non-cash changes

Non-current liabilities due
409,220,030.69 5,312,118,620.81 384,295,482.65 22,895,772.49 5,314,147,396.36
within one year

Short-term loans 7,579,559,304.97 7,068,722,590.74 246,534,117.28 8,490,272,406.79 13,951,549.93 6,390,592,056.27

Long-term loans 8,906,931,402.89 3,881,307,916.00 421,767,241.00 2,539,449,257.46 2,891,407,222.55 7,779,150,079.88

Bonds payable 4,792,392,044.13 180,932,955.99 175,760,000.00 2,370,572,421.45 2,426,992,578.67

Lease liabilities 36,586,639.16 206,391,170.31 7,495,510.95 75,263,479.60 160,218,818.92

Long-term payables 7,964,127.18 377,045.54 1,326,996.00 878,442.65 6,135,734.07

Total 21,732,653,549.02 10,950,030,506.74 6,368,121,150.93 11,598,599,653.85 5,374,968,888.67 22,077,236,664.17




299
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
( 4 ) Notes to the presentation of cash flows on a net basis
No cash flows were presented on a net basis in the current year.
( 5 ) Significant activities and financial effects that do not involve current cash receipts
and payments but affect the financial position of the enterprise or may affect the
enterprise's cash flows in the future

Item Amount incurred in the current year

Payment for materials made by endorsement of notes
1,823,500,934.62
receivable

Acquisition of long-term assets by endorsement of notes
95,233,307.89
receivable

Other payments made by endorsement of notes receivable 158,839,883.66

67.Supplementary data on the statements of cash flows
( 1 ) Supplementary data on the statements of cash flows

Amount of current
Item Amount of last year
year

1. Reconciliation of net profit to cash flows from
— -
operating activities:

Net profit -2,635,886,661.34 -1,769,220,348.36

Add: Provision for asset impairment 560,592,965.39 295,395,852.33

Credit impairment loss 456,603,000.84 949,885,019.53

Depreciation of fixed assets, depletion of oil and gas
450,848,329.23 396,581,885.62
assets, and depreciation of productive biological assets

Depreciation of right-of-use assets 42,868,891.40 46,766,548.09

Amortisation of intangible assets 47,675,317.23 49,235,482.54

Amortisation of long-term prepaid expense 127,376,763.41 113,357,073.06

Losses on disposal of fixed assets, intangible assets
-54,321.20 -9,580,708.29
and other long-lived assets ( "" indicates income)

Losses on scrap of fixed assets ( "" indicates income) 65,989,435.90 2,423,305.38

Losses on changes in fair value ( "" indicates income) 97,937,910.89 40,731,333.54

Finance costs ( "" indicates income) 723,081,917.40 796,256,399.85

Investment loss ( "" indicates income) -675,405,221.53 -936,006,397.44

Decrease in deferred income tax assets ( "" indicates
-229,384,248.41 -464,095,009.37
increase)



300
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Amount of current
Item Amount of last year
year

Increase in deferred income tax liabilities ( "" indicates
89,598,866.96 10,634,827.21
decrease)

Decrease in inventories ( "" indicates increase) 772,941,542.37 -509,708,316.12

Decrease in accounts receivable generated from
879,334,900.88 1,536,953,154.05
operating activities ( "" indicates increase)

Increase in accounts payable used in operating activities
-171,981,975.37 -1,048,804,193.14
( "" indicates decrease)

Others -49,036,136.15 -29,108,950.31

Net cash flows from operating activities 553,101,277.90 -528,303,041.83

2. Significant investment and financing activities not
involving cash

Conversion of liabilities into capital

Convertible corporate bonds due within one year

Fixed assets acquired under finance leases

3. Net changes in cash and cash equivalents:

Balance of cash at the end of the year 5,674,784,349.55 5,461,912,010.90

Less: Opening balance of cash 5,461,912,010.90 5,968,347,219.03

Add: Closing balance of cash equivalents

Less: Opening balance of cash equivalents

Net increase in cash and cash equivalents 212,872,338.65 -506,435,208.13

( 2 ) Net cash paid for the acquisition of subsidiaries in the current year
Net cash was paid for the acquisition of subsidiaries in the current year.
( 3 ) Net cash received for the disposal of subsidiaries in the current year

Item Amount

Cash or cash equivalents received in the current year from the disposal
196,815,840.00
of subsidiaries in the current year

Including: Guizhou Kanggui Energy Co., Ltd. 9,500,000.00

Kanghong (Yantai) Environmental Protection Technology Co., Ltd. 1,091,900.00

Chongqing Kang xing rui Environmental Protection Technology Co.,
40,308,400.00
Ltd.


301
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Item Amount

Sichuan Hongxinchen Real Estate Development Co., Ltd. 20,855,540.00

Yibin Kangrun Environmental Protection Power Generation Co.,
52,460,000.00
Ltd.

Zhongshan Kanghong Electronic Technology Co., Ltd. 72,600,000.00

Less: Cash and cash equivalents held by subsidiaries on the day when
31,692,957.22
control is lost

Including: Guizhou Kanggui Energy Co., Ltd.

Kanghong (Yantai) Environmental Protection Technology Co., Ltd. 1,932,092.20

Chongqing Kang xing rui Environmental Protection Technology Co.,
26,937,835.64
Ltd.

Sichuan Hongxinchen Real Estate Development Co., Ltd. 2,036,650.33

Yibin Kangrun Environmental Protection Power Generation Co.,
786,379.05
Ltd.

Zhongshan Kanghong Electronic Technology Co., Ltd.

Add: Cash or cash equivalents received in the current year from the
disposal of subsidiaries in previous periods

Including:

Net cash received from the disposal of subsidiaries 165,122,882.78

( 4 ) Composition of cash and cash equivalents

Item Closing balance Opening balance

Cash 5,674,784,349.55 5,461,912,010.90

Including: Cash on hand 469.28 14.78

Bank deposits available for payment at any time 5,672,034,875.67 5,459,401,175.52

Other monetary funds available for payment at any
2,749,004.60 2,510,820.60
time

Balance of cash and cash equivalents at the end of the
5,674,784,349.55 5,461,912,010.90
year

( 5 ) Presentation of cash and cash equivalents with restricted use

Amount of Amount of last Reasons for classifying the funds as cash
Item
current year year and cash equivalents




302
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Amount of Amount of last Reasons for classifying the funds as cash
Item
current year year and cash equivalents

The proceeds can be used at any time to
Project loan proceeds 2,554,356.19 make payments, and such payments can
only be made for projects

The proceeds can be used at any time to
Project pre-sale funds 40,951,191.37 make payments, and such payments can
only be made for projects

Total 43,505,547.56 -

( 6 ) Monetary funds not classified as cash and cash equivalents

Reasons for not
Amount of current classifying the funds as
Item Amount of last year
year cash and cash
equivalents

It is pledged for
borrowing or deposit for
Cash deposit 384,011,696.60 435,167,024.52
issuance of banker
acceptance

The management
Time deposits 226,611,500.00 69,800,000.00 intends to hold the
deposits to maturity

Not readily available for
Frozen funds 220,952,030.87 21,216,455.29
payment

Total 831,575,227.47 526,183,479.81 -

68.Items in the Statement of Changes in Shareholders' Equity
No "other" amount in the closing amount of last year was adjusted in the current year.
69.Foreign currency monetary items
( 1 ) Foreign currency monetary items

Year-end foreign currency Year-end balance
Item Exchange rate
balance denominated in RMB

Monetary assets

Including: USD 91,184,116.43 7.08270 645,829,741.44

EUR 354,034.80 7.85920 2,782,430.30

EGP 60,588,354.86 0.22903 13,876,550.91

GBP 1.32 9.04110 11.93

HKD 9,020,139.65 0.90622 8,174,230.95

CAD 6.96 5.36730 37.36


303
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Year-end foreign currency Year-end balance
Item Exchange rate
balance denominated in RMB

PLN 6,235,024.89 1.81068 11,289,634.87

Accounts receivable

Including: USD 85,032,871.75 7.08270 602,262,320.74

EUR 92,742.00 7.85920 728,877.93

EGP 64,711.11 0.22903 14,820.79

HKD 54,244,812.62 0.90622 49,157,734.09

AUD 49,764.00 4.84840 241,275.78

Other accounts receivable

Including: USD 110,836,591.33 7.08270 785,022,325.41

EGP 108,000.00 0.22903 24,735.24

HKD 814,032.70 0.90622 737,692.71

JPY 21,400,000.00 0.05021 1,074,558.20

Accounts payable

Including: USD 4,828,295.25 7.08270 34,197,366.77

EUR 12,698.28 7.85920 99,798.32

EGP 44,517,982.34 0.22903 10,195,953.50

HKD 68,208,818.14 0.90622 61,812,195.17

Other payables

Including: USD 3,453,133.32 7.08270 24,457,507.37

EUR 150,799.56 7.85920 1,185,163.90

EGP 911,520.00 0.22903 208,765.43

HKD 5,056,341.30 0.90622 4,582,157.61

( 2 ) Overseas entities
The significant overseas entities include Hongdin Trading, Hong Kong Konka, Chain Kingdom
Memory Technologies, Kangjietong, Jiali International, and Kowin Memory (Hong Kong). The
main overseas operating place is Hong Kong. The Company's recording currency is HKD since
the main currency in circulation in Hong Kong is HKD.




304
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
VII. R&D expenditures

Amount incurred in the current
Item Amount incurred last year
year

Salary 271,425,739.22 291,536,802.63

Depreciation and amortisation
109,324,146.88 76,242,059.21
charge

New product trial production
37,107,469.57 53,488,226.67
expense

Material expense 29,602,114.38 38,872,892.09

Commission service fee 4,452,755.80 13,376,731.07

Testing expense 5,899,826.42 4,302,928.77

Information use fee 313,299.20 918,800.49

Others 39,868,408.39 65,143,583.96

Total 497,993,759.86 543,882,024.89

Including: Expensed R&D
497,993,759.86 543,882,024.89
expenditure

Capitalised R&D expenditure

VIII. Changes in the Scope of Consolidation
1. Combinations of businesses not under common control
The Company had no combinations of businesses not under common control in the Reporting
Period.
2. Combinations of businesses under common control
The Company had no combinations of businesses under common control in the Reporting Period.




305
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
3. Disposal of subsidiaries
Unit: RMB10,000

Difference Recognition
between the method and
disposal price Carrying Fair value major Amount of
and the value of of assumptions other
attributable Remaining remaining remaining of fair value comprehensive
Gains or
Proportion Disposal share of net equity equity at the equity at the of income related
Basis for losses from
Disposal price of disposals method at Control assets of the percentage level of the level of the remaining to the equity
determining re-
at control at control control right subsidiary at on the day consolidated consolidated equity at the investments of
Subsidiary control measurement
right losing right losing right losing time the level of when the financial financial level of the former
right losing of remaining
time point time point losing time point consolidated control statements statements consolidated subsidiaries
time point equity at fair
(%) point financial right is on the day on the day financial transferred
value
statements lost (%) when the when the statements into
corresponding control control on the day investment
to the right is lost right is lost when the profit or loss
investment control
disposal right is lost

The rights
and
obligations
19 related to
Evaluated
Zhongshan Kanghong 7,260.00 100.00 Transfer December the 4.80
price
2023 underlying
equity have
been
transferred

The rights
and
obligations
25 related to
Guizhou Kanggui Evaluated
950.00 100.00 Transfer December the 97.49
Energy price
2023 underlying
equity have
been
transferred




306
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Difference Recognition
between the method and
disposal price Carrying Fair value major Amount of
and the value of of assumptions other
attributable Remaining remaining remaining of fair value comprehensive
Gains or
Proportion Disposal share of net equity equity at the equity at the of income related
Basis for losses from
Disposal price of disposals method at Control assets of the percentage level of the level of the remaining to the equity
determining re-
at control at control control right subsidiary at on the day consolidated consolidated equity at the investments of
Subsidiary control measurement
right losing right losing right losing time the level of when the financial financial level of the former
right losing of remaining
time point time point losing time point consolidated control statements statements consolidated subsidiaries
time point equity at fair
(%) point financial right is on the day on the day financial transferred
value
statements lost (%) when the when the statements into
corresponding control control on the day investment
to the right is lost right is lost when the profit or loss
investment control
disposal right is lost

The rights
and
obligations
Kanghong (Yantai) 28 related to
Evaluated
Environmental 109.19 51.00 Transfer December the 6.50
price
Protection 2023 underlying
equity have
been
transferred

The rights
and
obligations
5 related to
Chongqing Evaluated
4,030.84 51.00 Transfer December the 38.84
Kang xing rui price
2023 underlying
equity have
been
transferred




307
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Difference Recognition
between the method and
disposal price Carrying Fair value major Amount of
and the value of of assumptions other
attributable Remaining remaining remaining of fair value comprehensive
Gains or
Proportion Disposal share of net equity equity at the equity at the of income related
Basis for losses from
Disposal price of disposals method at Control assets of the percentage level of the level of the remaining to the equity
determining re-
at control at control control right subsidiary at on the day consolidated consolidated equity at the investments of
Subsidiary control measurement
right losing right losing right losing time the level of when the financial financial level of the former
right losing of remaining
time point time point losing time point consolidated control statements statements consolidated subsidiaries
time point equity at fair
(%) point financial right is on the day on the day financial transferred
value
statements lost (%) when the when the statements into
corresponding control control on the day investment
to the right is lost right is lost when the profit or loss
investment control
disposal right is lost

The rights
and
obligations
Yibin Kangrun 27 related to
Evaluated
Environmental 5,246.00 40.87 Transfer November the 610.00
price
Protection 2023 underlying
equity have
been
transferred

The rights
and
obligations
Sichuan Hongxinchen 27 related to
Evaluated
Real Estate 3,472.00 31.00 Transfer February the 3,256.58 49.00 340.51 5,488.00 5,147.49
price
Development Co., Ltd. 2023 underlying
equity have
been
transferred




308
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
4. Changes in the scope of consolidation due to other reasons

(1) Subsidiaries established in the current year
No subsidiaries were established in the current year.

(2) Subsidiaries cancelled in the current year

Registered capital Shareholding Liquidation completion
Subsidiary
(RMB'0,000) percentage (%) time

Anhui Zhilian 5,000.00 100.00 1 June 2023

Jiangsu Konka Special
10,000.00 51.00 8 October 2023
Material




309
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
IX. Interests in other entities
1. Interests in subsidiaries
( 1 ) Composition of the business group
Shareholding percentage
Main place of (%) Acquisition
No. Subsidiary Place of registration Business nature
business method
Direct Indirect
Guangdong, Guangdong, Enterprise management consulting, incubation Establishment
1 Konka Ventures 51
Shenzhen Shenzhen management, housing leasing, etc. or investment
Other professional consultation and Establishment
2 Yantai Konka Shandong, Yantai Shandong, Yantai 51
investigation or investment
Establishment
3 Chengdu, Anren Sichuan, Chengdu Sichuan, Chengdu Enterprise incubation management 51
or investment
Establishment
4 Konka Enterprise Service Guizhou, Guiyang Guizhou, Guiyang Enterprise management consulting 51
or investment
Establishment
5 Yibin Konka Incubator Sichuan, Yibin Sichuan, Yibin Commercial services 51
or investment
Establishment
6 Anhui Konka Anhui, Chuzhou Anhui, Chuzhou Manufacturing 78
or investment
Establishment
7 Kangzhi Trade Anhui, Chuzhou Anhui, Chuzhou Wholesale 78
or investment

Guangdong, Guangdong, Other science and technology promotion Establishment
8 Konka Electronic Materials 100
Shenzhen Shenzhen services or investment

Guangdong, Guangdong, Establishment
9 Konka Unifortune Trade and services 51
Shenzhen Shenzhen or investment
Establishment
10 Jiali International China, Hong Kong China, Hong Kong Trade and services 51
or investment
Guangdong, Guangdong, Establishment
11 Wankaida Software development 100
Shenzhen Shenzhen or investment

310
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Shareholding percentage
Main place of (%) Acquisition
No. Subsidiary Place of registration Business nature
business method
Direct Indirect
Guangdong, Guangdong, Establishment
12 Dongguan Konka Manufacturing 75 25
Dongguan Dongguan or investment
Establishment
13 Suining Konka Smart Sichuan, Suining Sichuan, Suining Wholesale 100
or investment
Establishment
14 Konka Europe Germany, Frankfurt Germany, Frankfurt International trade 100
or investment
Telecommunication Guangdong, Guangdong, Establishment
15 Manufacturing 75 25
Technology Shenzhen Shenzhen or investment
Establishment
16 Konka Mobility China, Hong Kong China, Hong Kong Commerce 100
or investment
Guangdong, Guangdong, Establishment
17 Mobile Interconnection Commerce 100
Shenzhen Shenzhen or investment
Establishment
18 Sichuan Konka Sichuan, Yibin Sichuan, Yibin Manufacturing 100
or investment
Establishment
19 Yibin Smart Sichuan, Yibin Sichuan, Yibin Manufacturing 100
or investment
Establishment
20 Anhui Tong giường Anhui, Chuzhou Anhui, Chuzhou Manufacturing 100
or investment
Establishment
21 Anhui Electrical Appliance Anhui, Chuzhou Anhui, Chuzhou Manufacturing 51
or investment
Establishment
22 Frestec Refrigeration Henan, Xinxiang Henan, Xinxiang Manufacturing 51
or investment
Establishment
23 Frestec Smart Home Henan, Xinxiang Henan, Xinxiang Manufacturing 51
or investment
Establishment
24 Frestec Electrical Appliances Henan, Xinxiang Henan, Xinxiang Manufacturing 51
or investment


311
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Shareholding percentage
Main place of (%) Acquisition
No. Subsidiary Place of registration Business nature
business method
Direct Indirect
Establishment
25 Frestec Household Appliances Henan, Xinxiang Henan, Xinxiang Manufacturing 51
or investment
Establishment
26 Jiangsu Konka Smart Jiangsu, Changzhou Jiangsu, Changzhou Manufacturing 51
or investment
Establishment
27 Kangjiatong Sichuan, Yibin Sichuan, Yibin Trade and services 100
or investment
Guangdong, Guangdong, Establishment
28 Pengrun Technology Trade and services 51
Shenzhen Shenzhen or investment
Establishment
29 Jiaxin Technology China, Hong Kong China, Hong Kong Trade and services 51
or investment
Establishment
30 Beijing Konka Electronic Beijing Beijing Sale of home appliance 100
or investment
Tianjin Pilot Free Tianjin Pilot Free Establishment
31 Tianjin Konka Service Industry 100
Trade Zone Trade Zone or investment
Guangdong, Guangdong, Establishment
32 Konka Circuit Manufacturing 100
Shenzhen Shenzhen or investment
Establishment
33 Boluo Precision Guangdong, Boluo Guangdong, Boluo Manufacturing 100
or investment
Establishment
34 Boluo Konka Guangdong, Boluo Guangdong, Boluo Manufacturing 100
or investment
Establishment
35 Hong Kong Konka China, Hong Kong China, Hong Kong International trade 100
or investment
Establishment
36 Hongdin Invest China, Hong Kong China, Hong Kong Investment holding 100
or investment
Chain Kingdom Memory Establishment
37 China, Hong Kong China, Hong Kong International trade 51
Technologies or investment


312
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Shareholding percentage
Main place of (%) Acquisition
No. Subsidiary Place of registration Business nature
business method
Direct Indirect
Zhongkang Semiconductor Establishment
38 Zhe gian g, Shao xing Zhe gian g, Shao xing Trade and services 51
(Shao xing ) or investment
Establishment
39 Hongjet China, Hong Kong China, Hong Kong Trade and services 51
or investment
Establishment
40 Hongdin Trading China, Hong Kong China, Hong Kong International trade 100
or investment
Establishment
41 Kanghao Technology Egypt, Cairo Egypt, Cairo International trade 67
or investment
Establishment
42 Konka North America America, California America, California International trade 100
or investment
Guangdong, Guangdong, Establishment
43 Konka Investment Capital market services 100
Shenzhen Shenzhen or investment
Industrial park development and operation Establishment
44 Yibin Konka Technology Park Sichuan, Yibin Sichuan, Yibin 100
management or investment
Guangdong, Guangdong, Establishment
45 Konka Capital Capital market services 100
Shenzhen Shenzhen or investment
Guangdong, Guangdong, Establishment
46 Konka Suiyong Commercial services 51
Shenzhen Shenzhen or investment
Guangdong, Guangdong, Establishment
47 Sheng xing Industrial Commercial services 51
Shenzhen Shenzhen or investment
Guangdong, Guangdong, Establishment
48 Zhitong Technology Software and information technology services 51
Shenzhen Shenzhen or investment
Guangdong, Guangdong, Establishment
49 Electronics Technology Manufacturing 100
Shenzhen Shenzhen or investment
Guangdong, Guangdong, Establishment
50 Shenzhen Kangcheng Software and information technology services 100
Shenzhen Shenzhen or investment


313
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Shareholding percentage
Main place of (%) Acquisition
No. Subsidiary Place of registration Business nature
business method
Direct Indirect
Guangdong, Guangdong, Establishment
51 Xiaojia Technology Retail trade 100
Shenzhen Shenzhen or investment
Establishment
52 Haimen Konka Jiangsu, Nantong Jiangsu, Nantong Trade and services 100
or investment
Establishment
53 Chengdu Konka Smart Sichuan, Chengdu Sichuan, Chengdu Trade and services 100
or investment
Establishment
54 Chengdu Konka Electronic Sichuan, Chengdu Sichuan, Chengdu Manufacturing 100
or investment
Guangdong, Guangdong, Establishment
55 XingDa HongYe Manufacturing 51
Zhongshan Zhongshan or investment
Establishment
56 Liaoyang Kangshun Smart Liaoning, Liaoyang Liaoning, Liaoyang Wholesale 100
or investment
Liaoyang Kangshun Comprehensive utilisation of renewable Establishment
57 Liaoning, Liaoyang Liaoning, Liaoyang 100
Renewable resources or investment
Establishment
58 Nanjing Konka Jiangsu, Nanjing Jiangsu, Nanjing Wholesale 100
or investment
Establishment
59 Konka Huanjia Liaoning, Dalian Liaoning, Dalian Renewable resources processing trade 51
or investment
Establishment
60 Konka Huanjia (Henan) Henan, Lankao Henan, Lankao Renewable resources processing trade 51
or investment
Establishment
61 Shanghai Konka Shanghai Shanghai Real estate 100
or investment
Establishment
62 Yantai Kangjin Shandong, Yantai Shandong, Yantai Real estate 62.8
or investment
Establishment
63 Jiangxi Konka Jiangxi, Jiu gian g Jiangxi, Jiu gian g Manufacturing and processing 51
or investment


314
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Shareholding percentage
Main place of (%) Acquisition
No. Subsidiary Place of registration Business nature
business method
Direct Indirect
Establishment
64 Xinfeng Microcrystalline Jiangxi, Nanchang Jiangxi, Nanchang Manufacturing and processing 51
or investment
Guangdong, Guangdong, Establishment
65 Shenzhen Nianhua Commercial services 100
Shenzhen Shenzhen or investment
Guangdong, Guangdong, Establishment
66 Shenzhen KONSEMI Semiconductors 100
Shenzhen Shenzhen or investment
Establishment
67 Chongqing Konka Chongqing Chongqing Software and information technology services 100
or investment
Guangdong, Guangdong, Establishment
68 Konka Eco-Development Commercial services 51
Shenzhen Shenzhen or investment
Industrial park development and operation Establishment
69 Suining Konka Industrial Park Sichuan, Suining Sichuan, Suining 100
management or investment
Establishment
70 Konka Ronghe Zhe gian g, Jia xing Zhe gian g, Jia xing Wholesale and retail trade 51
or investment
Suining Electronic Establishment
71 Sichuan, Suining Sichuan, Suining Commercial services 100
Technological Innovation or investment
Shenzhen Chuangzhi Guangdong, Guangdong, Establishment
72 Wholesale 100
Electrical Appliances Shenzhen Shenzhen or investment
Chongqing Konka Establishment
73 Chongqing Chongqing Research & experiment development 70 5
Optoelectronic Technology or investment
Guangdong, Guangdong, Computer, telecommunications and other Establishment
74 Kowin Memory (Shenzhen) 100
Shenzhen Shenzhen electronic equipment manufacturing or investment
Computer, telecommunications and other Establishment
75 Konka Xinyun Semiconductor Jiangsu, Yancheng Jiangsu, Yancheng 100
electronic equipment manufacturing or investment
Jiangkang (Shanghai) Establishment
76 Shanghai Shanghai Research & experiment development 51
Technology or investment


315
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Shareholding percentage
Main place of (%) Acquisition
No. Subsidiary Place of registration Business nature
business method
Direct Indirect
Ningbo Kanghr Electrical Electrical machinery and equipment Establishment
77 Zhe gian g, Ningbo Zhe gian g, Ningbo 60
Appliance manufacturing or investment
Konka Intelligent Guangdong, Guangdong, Establishment
78 Research & experiment development 51
Manufacturing Shenzhen Shenzhen or investment
Establishment
79 Suining Jiarun Property Sichuan, Suining Sichuan, Suining Real estate 100
or investment
Ecological protection and environmental Establishment
80 Yibin Kangrun Sichuan, Yibin Sichuan, Yibin 67
governance services or investment
Hainan Konka Material Establishment
81 Hainan, Haikou Hainan, Haikou Commercial services 100
Technology or investment
Jiangxi High Transparent Establishment
82 Jiangxi, Jiu gian g Jiangxi, Jiu gian g Manufacturing and processing 51
Substrate or investment
Computer, telecommunications and other Establishment
83 Nantong Hongdin Jiangsu, Nantong Jiangsu, Nantong 100
electronic equipment manufacturing or investment
Establishment
84 Chuzhou Konka Anhui, Chuzhou Anhui, Chuzhou Manufacturing 94.9
or investment
Establishment
85 Konka Soft Electronic Sichuan, Suining Sichuan, Suining Manufacturing 97.5
or investment
Establishment
86 Konka Hongye Electronics Sichuan, Suining Sichuan, Suining Manufacturing 95.05
or investment
Wholesale of computers, software and auxiliary Establishment
87 Kowin Memory (Hong Kong) China, Hong Kong China, Hong Kong 100
equipment or investment
Establishment
88 Konka Cross-border (Hebei) Hebei, Handan Hebei, Handan Wholesale 100
or investment
Establishment
89 Konka Huazhong Hunan, Changsha Hunan, Changsha Commercial services 100
or investment


316
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Shareholding percentage
Main place of (%) Acquisition
No. Subsidiary Place of registration Business nature
business method
Direct Indirect
Ecological protection and environmental Establishment
90 Yibin Kangrun Medical Sichuan, Yibin Sichuan, Yibin 63.65
governance services or investment
Manufacture of household cleaning and sanitary Establishment
91 Shanxi Konka Intelligent Shanxi, Xi'an Shanxi, Xi'an 51
electrical appliances or investment
Chongqing Xinyuan Science and technology promotion and Establishment
92 Chongqing Chongqing 75
Semiconductor application services or investment
Establishment
93 Anlu Konka Hubei, Anlu Hubei, Anlu Software and information technology services 100
or investment
Guangdong, Guangdong, Establishment
94 Kanghong Dongsheng Commercial services 95.09
Shenzhen Shenzhen or investment
Guizhou, Qiannan Guizhou, Qiannan
Guizhou Konka New Material Buyi and Miao Buyi and Miao Establishment
95 Manufacturing and processing 51
Technology Autonomous Autonomous or investment
Prefecture Prefecture
Establishment
96 Guangdong Xinwei Guangdong, Lvfeng Guangdong, Lvfeng Semiconductors 100
or investment
Guizhou, Qiannan Guizhou, Qiannan
Guizhou Kanggui Material Buyi and Miao Buyi and Miao Establishment
97 Manufacturing and processing 70
Technology Autonomous Autonomous or investment
Prefecture Prefecture
Establishment
98 Nantong Kanghai Jiangsu, Nantong Jiangsu, Nantong Real estate 51
or investment
Establishment
99 Chongqing Kangyiyun Chongqing Chongqing Real estate 80
or investment
Establishment
100 Jiangxi Konka High-tech Park Jiangxi, Shangrao Jiangxi, Shangrao Commercial services 100
or investment
Shangrao Konka Electronic Establishment
101 Jiangxi, Shangrao Jiangxi, Shangrao Research & experiment development 100
Technology Innovation or investment
317
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Shareholding percentage
Main place of (%) Acquisition
No. Subsidiary Place of registration Business nature
business method
Direct Indirect
Establishment
102 Guizhou Konka New Energy Guizhou, Kaili Guizhou, Kaili Manufacture of non-metallic mineral products 98
or investment
Establishment
103 Zhe gian g Konka Electronic Zhe gian g, Shao xing Zhe gian g, Shao xing Research & experiment development 100
or investment
Zhe gian g Konka Technology Establishment
104 Zhe gian g, Shao xing Zhe gian g, Shao xing Commercial services 51 49
Industry or investment
Establishment
105 Xi'an Konka Intelligent Shanxi, Xi'an Shanxi, Xi'an Wholesale 51
or investment
Computer, telecommunications and other Establishment
106 Xi'an Konka Network Shanxi, Xi'an Shanxi, Xi'an 100
electronic equipment manufacturing or investment
Xi'an Kanghong Technology Establishment
107 Shanxi, Xi'an Shanxi, Xi'an Commercial services 40 60
Industry or investment
Xi'an Konka Intelligent Establishment
108 Shanxi, Xi'an Shanxi, Xi'an Retail trade 100
Technology or investment
Establishment
109 Anhui Konka Low Carbon Anhui, Ma'anshan Anhui, Ma'anshan Wholesale 55
or investment
Guangdong, Guangdong, Establishment
110 Kanghong Xintong Commercial services 95.09049
Shenzhen Shenzhen or investment
Establishment
111 Songyang Industry Operation Zhe gian g, Lishui Zhe gian g, Lishui Software and information technology services 51
or investment
Guangdong, Guangdong, Computer, telecommunications and other Establishment
112 Kangyan Technology 100
Shenzhen Shenzhen electronic equipment manufacturing or investment
Konka Photovoltaic Science and technology promotion and Establishment
113 Zhe gian g, Hangzhou Zhe gian g, Hangzhou 60
Technology application services or investment
Establishment
114 Songyang Konka Intelligent Zhe gian g, Lishui Zhe gian g, Lishui Wholesale 100
or investment


318
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Shareholding percentage
Main place of (%) Acquisition
No. Subsidiary Place of registration Business nature
business method
Direct Indirect
Electrical machinery and equipment Establishment
115 Konka North China Tianjin Tianjin 100
manufacturing or investment
Guangdong, Guangdong, Establishment
116 Digital Technology Software and information technology services 100
Shenzhen Shenzhen or investment

( 2 ) Major non-wholly-owned subsidiaries

Dividends declared to be
Profit or loss attributable
Shareholding of minority distributed to minority Closing balance of minority
Subsidiary to minority shareholders
shareholders shareholders in the current shareholders' equities
in the current year
year

Shanxi Konka Intelligent Appliance Co., Ltd. 49.00% -3,799,466.73 193,980,534.42

( 3 ) Key financial data on major non-wholly-owned subsidiaries

Closing balance
Subsidiary
Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities

Shanxi Konka Intelligent
523,223,416.76 566,375,884.26 1,089,599,301.02 398,648,732.52 295,071,926.82 693,720,659.34
Appliance Co., Ltd.




319
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
(Continued)

Opening balance
Subsidiary
Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities

Shanxi Konka Intelligent
744,667,031.91 89,068,283.25 833,735,315.16 419,779,159.30 10,323,500.45 430,102,659.75
Appliance Co., Ltd.

(Continued)

Amount incurred in the current year
Subsidiary
Cash flows from operating
Operating income Net profit Total comprehensive income
activities

Shanxi Konka Intelligent Appliance Co., Ltd. 243,470,872.39 -7,754,013.73 -7,754,013.73 138,204,929.56

(Continued)

Amount incurred last year
Subsidiary
Cash flows from operating
Operating income Net profit Total comprehensive income
activities

Shanxi Konka Intelligent Appliance Co., Ltd. 146,157,865.44 190,320,327.09 190,320,327.09 12,271,653.60




320
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
2. Interests in joint ventures or associated enterprises
( 1 ) Major joint ventures or associated enterprises

Shareholding Accounting
Name of the joint Main percentage (%) processing method
Place of Business
venture or associated place of for investment in
registration nature
enterprise business joint ventures or
Direct Indirect
associated
enterprises
Dongfang Jiakang
No.1 (Zhuhai) Private
Equity Investment
Fund (LP) (formerly: Investment
Zhuhai Zhuhai 49.95 Equity method
Dongfang Konka No. management
1 (Zhuhai) Private
Equity Investment
Fund (LP))


Professional
Shenzhen Jielunte
Shenzhen Shenzhen machinery 42.79 Equity method
Technology Co., Ltd.
manufacturing


( 2 ) Key financial data on significant associated enterprises

Amount incurred at the end of the year/in the current year

Dongfang Jiakang No.1
(Zhuhai) Private Equity
Item Investment Fund (LP)
Shenzhen Jielunte
(formerly: Dongfang Konka
Technology Co., Ltd.
No. 1 (Zhuhai) Private
Equity Investment Fund
(LP))

Current assets 686,882,241.74 274,817,240.18

Non-current assets 338,361,205.79

Total assets 686,882,241.74 613,178,445.97

Current liabilities 10,026,785.45 261,433,145.90

Non-current liabilities 133,388,974.62

Total liabilities 10,026,785.45 394,822,120.52

Equities of minority shareholders 9,322,847.51

Equities attributable to shareholders of the
676,855,456.29 209,033,477.94
parent company

Share of net assets calculated based on the
338,089,300.42 94,917,575.00
shareholding

Adjustments


321
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Amount incurred at the end of the year/in the current year

Dongfang Jiakang No.1
(Zhuhai) Private Equity
Item Investment Fund (LP)
Shenzhen Jielunte
(formerly: Dongfang Konka
Technology Co., Ltd.
No. 1 (Zhuhai) Private
Equity Investment Fund
(LP))

- Goodwill

- Internal unrealised profit

- Others

Carrying value of equity investments in
338,089,300.42 94,917,575.00
associated enterprises

Fair values of equity investments of joint
ventures with quoted prices

Operating income 410,594,556.87

Finance costs -558,256.35 4,030,883.95

Income tax expense 1,864,514.10

Net profit 32,981,401.16 -12,883,145.89

Net profit from discontinued operations

Other comprehensive income

Total comprehensive income 32,981,401.16 -12,883,145.89

Dividends received from associated
enterprises in the current year

(Continued)

Amount incurred at the beginning of the year/in last year

Dongfang Jiakang No.1
(Zhuhai) Private Equity
Item Investment Fund (LP)
Shenzhen Jielunte
(formerly: Dongfang Konka
Technology Co., Ltd.
No. 1 (Zhuhai) Private
Equity Investment Fund
(LP))

Current assets 971,913,521.98 253,227,910.38

Non-current assets 288,320,463.89

Total assets 971,913,521.98 541,548,374.27


322
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Amount incurred at the beginning of the year/in last year

Dongfang Jiakang No.1
(Zhuhai) Private Equity
Item Investment Fund (LP)
Shenzhen Jielunte
(formerly: Dongfang Konka
Technology Co., Ltd.
No. 1 (Zhuhai) Private
Equity Investment Fund
(LP))

Current liabilities 3,340.00 233,990,644.75

Non-current liabilities 74,263,430.52

Total liabilities 3,340.00 308,254,075.27

Equities of minority shareholders 12,856,913.14

Equities attributable to shareholders of the
971,910,181.98 220,437,385.86
parent company

Share of net assets calculated based on the
483,905,786.35 99,748,594.97
shareholding

Adjustments

- Goodwill

- Internal unrealised profit

- Others

Carrying value of equity investments in
483,905,786.35 99,748,594.97
associated enterprises

Fair values of equity investments of joint
ventures with quoted prices

Operating income 514,976,783.54

Finance costs -461,885.81 -430,655.59

Income tax expense

Net profit 16,036,036.59 7,917,120.47

Net profit from discontinued operations

Other comprehensive income

Total comprehensive income 16,036,036.59 7,917,120.47

Dividends received from associated
enterprises in the current year

(3) Combined financial data on insignificant joint ventures and associated enterprises

323
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Amount incurred at the
Amount incurred at the end of
Item beginning of the year/in last
the year/in the current year
year

Associated enterprise

Total carrying value of investment 5,133,476,987.87 5,767,578,574.26

The total of following items according to the
shareholding proportions

Net profit -182,806,294.40 93,186,179.48

Other comprehensive income -86,041.63 -2,814,803.62

Total comprehensive income -182,892,336.03 90,371,375.86


X. Government grants
1. Liability items involving government subsidies

Amount
recognised Amount
Subsidies as non- transferred Other
Related
Account Opening increased in operating to other changes in Closing
to assets/
title balance the current income in incomes in the current balance
income
year the the current year
current year
year

Related to
Deferred
334,844,966.31 142,412,107.74 49,036,136.15 -3,085,700.00 425,135,237.90 assets/
revenue
income


2. Government subsidies recognised as profit and loss of the Reporting Period

Amount incurred in the current
Account title Amount incurred last year
year

Other income 270,618,031.94 928,712,500.81

XI. Risks Related to Financial Instruments
The Group's main financial instruments include borrowings, accounts receivable, accounts payable,
trading financial assets and liabilities, etc. Please refer to Note VI for detailed descriptions of
various financial instruments. The risks related to these financial instruments and the risk
management policies adopted by the Group to mitigate these risks are described below. The
management of the Group manages and monitors these risk exposures to ensure that these risks are
controlled within a limited scope.
1. Management objectives and policies for various risks
The Group's objective in engaging in the risk management is to achieve the proper balance
between the risks and benefits, minimise the negative impact of these risks on the Company's
operating results, and maximise the profits of shareholders and other equity investors. Based on
the risk management goal, the basic strategy of the Company's risk management is determining
and analysing the various risks faced by the Company, setting up the bottom line of risk and
conducting appropriate risk management, and timely supervising various risks in a reliable way
324
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
and controlling the risk within the range of limit.
( 1 ) Market risk
1 ) Exchange rate risk
Foreign exchange risk refers to the risks that may lead to losses due to fluctuation in exchange rate.
The foreign exchange risk borne by the Group is related to USD. Except the procurement and
sales in USD of the Company's subsidiaries Hong Kong Konka, Hongdin Trading, Chain
Kingdom Memory Technologies, Hongjet and Jiali, the Group's other primary business activities
are settled in RMB. The currency risk arising from the assets and liabilities of such balance in
USD may affect the Group's operating results. As of 31 December 2023, the Group's assets and
liabilities were mainly the balance in RMB except for the assets or liabilities of a balance in USD
as listed below.

Item Closing balance Opening balance

Monetary assets 91,184,116.43 106,315,046.38

Accounts receivable 85,032,871.75 86,909,542.13

Other accounts receivable 110,836,591.33 111,545,094.65

Other payables 3,453,133.32 205,546.18

Short-term loans 15,090,462.34

Accounts payable 4,828,295.25 24,084,328.20

Interest payable 10,875.01

The Group pays close attention to the impact of exchange rate changes on the Group's foreign
exchange risk, and requires major companies in the Group that purchase and sell in foreign
currency to pay attention to the changes in foreign currency assets and liabilities, manage the
Group's foreign currency net asset exposure in a unified way, implement single currency
settlement, and reduce the scale of foreign currency assets and liabilities, so as to reduce foreign
exchange risk exposure.
2 ) Interest rate risk
The Group bears interest rate risk due to interest rate changes of interest-bearing financial assets
and liabilities. The Group's interest bearing financial assets are mainly bank deposits, of which the
majority of the variable interest rates are short-term in nature, while the interest bearing financial
liabilities are mainly bank borrowings and corporate bonds. The Group's long-term bank
borrowings and corporate bonds are at fixed interest rates. The risk of cash flow changes of
financial instruments caused by interest rate changes is mainly related to short-term bank
borrowings with floating interest rates. The Group's policy is to maintain the floating interest rates
of such borrowings to eliminate the fair value risk of interest rate changes. As of 31 December
2023, the balance of such short-term borrowings was RMB6,390,592,056.27.
( 2 ) Credit risk
As of 31 December 2023, the maximum credit risk exposure that may cause financial losses to the
Group mainly came from losses generated from the Group's financial assets due to failure of the
other party to a contract to perform its obligations and the financial guarantee undertaken by the
Group, including:
The carrying amount of financial assets recognised in the consolidated balance sheet; for financial
325
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
instruments measured at fair value, the book value reflects their risk exposure, but not the
maximum risk exposure, and the maximum risk exposure will change with the change of future
fair value.
In order to reduce credit risk, the Group has set up a group to determine the credit limit, conduct
credit approval, and implement other monitoring procedures to ensure that necessary measures are
taken to recover overdue claims. In addition, the Group reviews the recovery of each single
receivable on each balance sheet date to ensure that sufficient provision for bad debts is made for
the unrecoverable amount. Therefore, the Group's management believes that the Group's credit
risk has been greatly reduced.
The Group's working capital is deposited in banks with a high credit rating, so the credit risk of
working capital is low.
The Group has adopted necessary policies to ensure that all customers have good credit records.
Except for the top five customers in terms of the amount of accounts receivable, the Group has no
other major credit concentration risks. For the financial assets of the Group that have been
individually impaired, please refer to 4. Accounts receivable and 7. Other receivables in Note VI.
( 3 ) Liquidity risk
Liquidity risk refers to the risk that the Group is unable to fulfil its financial obligations on the due
date. The Group manages liquidity risk in the method of ensuring that there is sufficient liquidity
to fulfil debt obligations without causing unacceptable loss or damage to the Group's reputation. In
order to mitigate the liquidity risk, the Group's management has carried out a detailed inspection
on the liquidity of the Group, including the maturity of accounts payable and other payables, bank
credit line and bond financing. The conclusion is that the Group has sufficient funds to meet the
needs of the Group's short-term debts and capital expenditure.
The analysis of the financial assets and financial liabilities held by the Group based on the
maturity period of the undiscounted remaining contractual obligations is as follows:




326
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Amount as of 31 December 2023:

Item Within one year One to two years Two to five years Over five years Total

Financial assets

Monetary assets 6,506,359,577.02 6,506,359,577.02

Held-for-trading financial assets 469,636,700.78 469,636,700.78

Notes receivable 533,171,949.15 533,171,949.15

Accounts receivable 1,450,456,203.34 82,283,751.73 149,915,722.31 43,890,295.70 1,726,545,973.08

Other accounts receivable 233,851,669.95 73,168,059.30 682,046,038.26 55,300.00 989,121,067.51

Long-term receivables

Other current assets 2,359,159,468.75 2,359,159,468.75

Financial liabilities

Short-term loans 6,390,592,056.27 6,390,592,056.27

Notes payable 990,482,927.20 990,482,927.20

Accounts payable 2,002,263,324.19 448,060,250.16 267,430,053.63 9,078,047.99 2,726,831,675.97

Other payables 1,122,286,310.07 436,261,216.60 300,909,046.88 63,335,331.59 1,922,791,905.14

Payroll payable 304,733,103.63 304,733,103.63

Non-current liabilities due within
5,314,147,396.36 5,314,147,396.36
one year


327
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Long-term loans 4,391,903,101.00 2,477,828,034.07 909,418,944.81 7,779,150,079.88

Bonds payable 2,426,992,578.67 2,426,992,578.67

Long-term payables 6,135,734.07 6,135,734.07




328
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
2. Sensitivity analysis
The Group adopts sensitivity analysis technology to analyse the possible impact of reasonable and
possible changes of risk variables on current profits/losses or shareholders' equity. As any risk
variable rarely changes in isolation, and the correlation between variables will have a significant
effect on the final impact amount of the change of a risk variable, the following content is based
on the assumption that the change of each variable is independent.
( 1 ) Sensitivity analysis of foreign exchange risk
Assumption for the sensitivity of foreign exchange risk: All net investment hedging and cash flow
hedging of overseas operations are highly effective.
On the basis of the above assumption, under the condition that other variables remain unchanged,
the impact of reasonable changes in the exchange rate on current profits/losses and equity after tax
is as follows:

2023 2022
Exchange
Item rate Impact on Impact on
fluctuations Impact on net Impact on net
shareholders' shareholders'
profit profit
equity equity

Appreciation
of 1%
USD 16,574,067.76 12,261,381.38 15,551,310.88 11,270,323.99
against
RMB

Depreciation
of 1%
USD -16,574,067.76 -12,261,381.38 -15,551,310.88 -11,270,323.99
against
RMB

( 2 ) Sensitivity analysis of interest rate risk
Sensitivity analysis of interest rate risk is based on the following assumptions:
Changes in market interest rates affect the interest income or expense of financial instruments with
variable interest rates;
For financial instruments with fixed interest rates measured at fair value, market interest rate
changes affect only their interest income or expense;
Changes in the fair values of derivative financial instruments and other financial assets and liabilities are
calculated at the market interest rate on the balance sheet date by discounted cash flow.
On the basis of the above assumptions and under the condition that other variables remain
unchanged, the impact of reasonable changes in the interest rate on current profits/losses and
equity after tax is as follows:

2023 2022
Interest rate
Item Impact on
fluctuations Impact on net Impact on Impact on net
shareholders'
profit shareholders' equity profit
equity

Borrowings at
Up 0.5% -24,196,276.74 -23,679,719.04 -28,813,464.20 -28,058,882.34
floating interest rates

Borrowings at Down 0.5% 24,196,276.74 23,679,719.04 28,813,464.20 28,058,882.34

329
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

2023 2022
Interest rate
Item Impact on
fluctuations Impact on net Impact on Impact on net
shareholders'
profit shareholders' equity profit
equity
floating interest rates




330
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
XII. Disclosure of Fair Value
1. Closing fair value of assets and liabilities measured at fair value

Cl o s i n g fa i r va l u e
Item
Level-1 fair value Level-2 fair value Level-3 fair value
Total
measurement measurement measurement
I. Continuous fair value measurement

(I) Held-for-trading financial assets 469,636,700.78 469,636,700.78

1. Financial assets measured at fair value through profit and loss for
469,636,700.78 469,636,700.78
the Reporting Period

(II) Accounts receivable financing 173,396,326.14 173,396,326.14

ii. Other debt investments

iii. Other equity instruments investments 23,841,337.16 23,841,337.16

iv. Investment properties

(V) Other non-current financial assets 2,009,676,398.00 2,009,676,398.00

Total assets continuously measured at fair value 173,396,326.14 2,503,154,435.94 2,676,550,762.08

Total liabilities continuously measured at fair value

II. Non-continuous fair value measurement

Total assets not continuously measured at fair value

Total liabilities not continuously measured at fair value




331
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
2. Basis for determining the market price of continuous and non-continuous level-1 fair
value measurement projects
The first level of the input is an unadjusted quoted price in an active market for the same assets
and liabilities available on the measurement date.
3. Qualitative and quantitative data on valuation techniques and important parameters
adopted for continuous and non-continuous level-2 fair value measurement projects
The Level 2 fair value measurement of input value at Level 2 is the input value observable directly
or indirectly of relevant assets or liabilities exclusive of input value at Level 1.
4. Qualitative and quantitative data on valuation techniques and important parameters
adopted for continuous and non-continuous level-3 fair value measurement projects
The third level of the input is the unobservable input of related assets and liabilities.
XIII. Related Party and Related Party Transactions
Related party relationship
( 1 ) Parent company of the Company

Shareholding Voting right
percentage of percentage of
Name of the parent Place of Registered the parent the parent
Business nature
company registration capital company in company in
the Company the Company
(%) (%)

Tourism, real
RMB12
OCT Group Shenzhen estate, electronics 29.999997 29.999997
billion
industry

The ultimate controller of the Company is State-owned Assets Supervisor Commission of the
State Council.
( 2 ) Subsidiaries of the Company
Please refer to note IX-1. (1) Subsidiaries for the information of subsidiaries.
( 3 ) Joint ventures and associated enterprises of the Company
Please refer to Note IX-2. (1) Significant joint ventures and associated enterprises for details of
significant joint ventures or associated enterprises of the Company.
Information on other joint ventures or associated enterprises having connected transactions with
the Company in the current year, or forming balance due to connected transactions made in
previous period:

Name Relationship with the Company

Anhui Kaikai Shijie E-commerce Co., Ltd. Associated enterprise

Anhui Kangfu New Energy Co., Ltd. Associated enterprise

Anhui Kangta Supply Chain Management Co., Ltd. Associated enterprise

Chuzhou Kangxin Health Industry Development Co., Ltd. Associated enterprise

Chutian Dragon Co., Ltd. Associated enterprise

332
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Name Relationship with the Company

Orient Excellent (Zhuhai) Asset Management Co., Ltd. Associated enterprise

Dongguan Kangjia New Materials Technology Co., Ltd. Associated enterprise

Dongguan Konka Smart Electronic Technology Co., Ltd. Associated enterprise

Dongguan Guankang Yuhong Investment Co., Ltd. Associated enterprise

Feidi Technology (Shenzhen) Co., Ltd. Associated enterprise

Guangdong Kangyuan Semiconductor Co., Ltd. Associated enterprise

Hefei KONSEMI Storage Technology Co., Ltd. Associated enterprise

Henan Kangfei Intelligent Electric Appliance Co., Ltd. Associated enterprise

Kangkong Venture Capital (Shenzhen) Co., Ltd. Associated enterprise

Nantong Kang gian Technology Industrial Park Operations and
Associated enterprise
Management Co., Ltd.

Pu giường Jiakang Technology Co, Ltd. Associated enterprise

Shandong Kangfei Intelligent Electrical Appliances Co., Ltd. Associated enterprise

Shenzhen Aimijiakang Technology Co., Ltd. Associated enterprise

Shenzhen Kanghong xing Intelligent Technology Co., Ltd. Associated enterprise

Shenzhen Kangpeng Digital Technology Co., Ltd. Associated enterprise

Shenzhen KONKA E-display Co., Ltd. Associated enterprise

Shenzhen Kangying Semiconductor Technology Co., Ltd. Associated enterprise

Shenzhen Morsemi Semiconductor Technology Co., Ltd. Associated enterprise

Shenzhen Kangjia Jiapin Intelligent Electrical Apparatus
Associated enterprise
Technology Co., Ltd.

Shenzhen Kangxi Technology Innovation Development Co.,
Associated enterprise
Ltd.

Shenzhen RF-Llink Technology Co., Ltd. Associated enterprise

Shenzhen Yaode Technology Co., Ltd. Associated enterprise

Shenzhen Zhongkang Beidou Technology Co., Ltd. (formerly
Associated enterprise
named: Shenzhen Zhongbing Konka Technology Co., Ltd.)

Sichuan Chengrui Real Estate Co., Ltd. Associated enterprise

Guangdong Adreamer Information Technology Co., Ltd. Associated enterprise
(formerly known as Sichuan Huayi Jiakang Technology Co.,


333
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Name Relationship with the Company
Ltd.)

KK Smartech Limited Associated enterprise

Yantai Kangyun Industrial Development Co., Ltd. Associated enterprise

Yancheng Kangyan Information Industry Investment
Associated enterprise
Partnership (Limited Partnership)

Yibin Kanghui Electronic Information Industry Equity
Associated enterprise
Investment Partnership (Limited Partnership)

E3info (Hainan) Technology Co., Ltd. Associated enterprise

Shandong Econ Technology Co., Ltd. Associated enterprise

Chongqing Kang gian Photoelectric Technology Co., Ltd. Associated enterprise

Chongqing Kangxin Equity Investment Fund Limited
Associated enterprise
Partnership (Limited Partnership)

Chongqing Kangyiqing Technology Co., Ltd. Associated enterprise

Chongqing Qingjia Electronics Co., Ltd. Associated enterprise

Sichuan Hongxinchen Real Estate Development Co., Ltd. Associated enterprise

Wuhan Kangtang Information Technology Co., Ltd. Associated enterprise

Foshan Zhu gian g Media Creative Park Cultural Development
Associated enterprise
Co., Ltd.

Panxu Intelligence Co., Ltd. Associated enterprise

( 4 ) Other related parties

Names of other related parties Relationship with the Company

HOHOELECTRICAL&FURNITURECO.,LIMITED Minority shareholder of subsidiary

Beijing Xuri Sheng xing Technology Co., Ltd. Minority shareholder of subsidiary

Chuzhou Hanshang Electric Appliance Co., Ltd. Minority shareholder of subsidiary

Korea Electric Group Co., Ltd. Minority shareholder of subsidiary

Hu Zehong Minority shareholder of subsidiary

Huanjia Group Co., Ltd. Minority shareholder of subsidiary

Shenzhen New Journey Energy Conservation and
Minority shareholder of subsidiary
Environmental Protection Service Co., Ltd.

Central Enterprises Poverty Alleviation (Jiangxi) Industrial Minority shareholder of subsidiary

334
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Names of other related parties Relationship with the Company
Fund Partnership (L.P.)

Chongqing Liangshan Industrial Investment Co., Ltd. Minority shareholder of subsidiary

Zhu Xinming Minority shareholder of subsidiary

AUJET INDUSTRY LIMITED Minority shareholder of subsidiary

Chuzhou State-owned Assets Management Co., Ltd. Minority shareholder of subsidiary

Shenzhen Unifortune Supply Chain Management Co., Ltd. Minority shareholder of subsidiary

Guizhou Huajinrun Technology Co. Ltd. Minority shareholder of subsidiary

Shenzhen Henglongtong Technology Co., Ltd. Minority shareholder of subsidiary

Suiyong Rongxin Asset Management Co., Ltd. Minority shareholder of subsidiary

Shenzhen Qianhai Datang Technology Co., Ltd. Minority shareholder of subsidiary

Wu Guoren Minority shareholder of subsidiary

Xiao Yongsong Minority shareholder of subsidiary

Hu Zehong Minority shareholder of subsidiary

Jiangsu Korea Electric Group Co., Ltd. Minority shareholder of subsidiary

The company controlled by the minority
Jiangxi Meiji Enterprise Co., Ltd.
shareholders of the subsidiary

The company controlled by the minority
Jiangxi Xinzixin Real Estate Co., Ltd.
shareholders of the subsidiary

Close family members of minority
Dai Rong xing 
shareholders of the subsidiary

Zhe gian g Donghong Asset Management Co., Ltd. Subsidiary of associated enterprise

AMobile Intelligent Corp. Ltd. Subsidiary of associated enterprise

Yantai Kangyue Investment Co., Ltd. Subsidiary of associated enterprise

Chongqing Lanlv Moma Real Estate Development Co., Ltd. Subsidiary of associated enterprise

Anhui Jiasen Precision Technology Co., Ltd. Subsidiary of associated enterprise

Chuzhou Jielunte Mould Plastic Co., Ltd. Subsidiary of associated enterprise

Guangdong Jielunte Technology Co., Ltd. Subsidiary of associated enterprise

Kunshan Jielunte Mould Plastic Co., Ltd. Subsidiary of associated enterprise

Dongguan Kangjie Plastic Mould Co., Ltd. Subsidiary of associated enterprise


335
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Names of other related parties Relationship with the Company

Dongguan Jielunte Plastic Mould Technology Co., Ltd. Subsidiary of associated enterprise

Dongguan Xutongda Mould Plastic Co., Ltd. Subsidiary of associated enterprise

Shenzhen Kangying Storage Technology Co., Ltd. Subsidiary of associated enterprise

Shenzhen E-Display Commercial Display Service Co., Ltd. Subsidiary of associated enterprise

Konka E-Display (Hong Kong) Co., Ltd. Subsidiary of associated enterprise

Guangdong KONKA E-display Co., Ltd. Subsidiary of associated enterprise

Shanghai Jiyi Environmental Technology Co., Ltd. Subsidiary of associated enterprise

2. Related-party transactions
( 1 ) Related party transactions involving the purchase and sale of goods and the supply
and acceptance of services
1 ) Purchasing goods/receiving services

Amount incurred
Related party Amount incurred
Related party in the current
transaction last year
year

Chuzhou Hanshang Electric Appliance Co., Ltd. Purchase of goods 331,347,005.28 361,343,092.66


Pu giường Jiakang Technology Co, Ltd. Purchase of goods 170,595,512.46 346,728,064.51

OCT Group Co., Ltd. and its subsidiaries and Purchase of goods
83,132,471.79 44,307,009.34
associates and services

Dongguan Guankang Yuhong Investment Co., Ltd. Purchase service 44,767,575.56 2,539,413.51

Shenzhen Jielunte Technology Co., Ltd. and its
Purchase of goods 41,713,723.62 30,219,079.03
subsidiaries

Anhui Kaikai Shijie E-commerce Co., Ltd. and its
Purchase of goods 23,456,578.00 10,162,140.56
subsidiaries

Korea Electric Group Co., Ltd. and its subsidiaries Purchase of goods 18,096,478.28 35,518,472.38

Shenzhen KONKA E-display Co., Ltd. and its
Purchase of goods 15,984,953.15 28,026,932.54
subsidiaries

Dongguan Konka Smart Electronic Technology Co., Purchase of goods
12,468,662.09 22,735,162.01
Ltd. and services

Dongguan Kangjia New Materials Technology Co.,
Purchase of goods 10,995,157.55 12,289,697.95
Ltd..

KK Smartech Limited Purchase of goods 10,415,968.34 45,029,492.58

AMobile Intelligent Corp. Ltd. Purchase of goods 7,383,664.55 727,144.88

336
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Amount incurred
Related party Amount incurred
Related party in the current
transaction last year
year

Shenzhen Kangjia Jiapin Intelligent Electrical
Purchase of goods 6,126,037.72 426,363.95
Apparatus Technology Co., Ltd.

Shenzhen Kangying Semiconductor Technology Co.,
Purchase of goods 6,102,501.84 41,158,319.46
Ltd. and its subsidiaries

HOHOELECTRICAL&FURNITURECO.,LIMITED Purchase of goods 5,864,370.25 19,585,193.41

Shenzhen Kanghong xing Intelligent Technology Co.,
Purchase of goods 8,531,405.75
Ltd.

Purchase of goods
Subtotal of other related parties 1,978,824.14 4,279,220.85
and services

( 2 ) Information of sales of goods and provision of labour service
Related party Amount incurred
Amount incurred
Related party transaction in the current
last year
year

Chuzhou Hanshang Electric Appliance Co., Ltd. Sales of goods 222,670,602.32 107,734,901.38

Sales of goods and
Korea Electric Group Co., Ltd. and its subsidiaries provision of labour 79,556,345.56 161,244,155.22
service

Sales of goods and
OCT Group Co., Ltd. and its subsidiaries and
provision of labour 78,023,377.38 178,677,010.72
associates
service

Sales of goods and
Shenzhen KONKA E-display Co., Ltd. and its
provision of labour 44,349,541.96 39,405,582.28
subsidiaries
service

Sales of goods and
Shenzhen Jielunte Technology Co., Ltd. and its
provision of labour 43,851,112.38 157,730,471.80
subsidiaries
service

Shandong Kangfei Intelligent Electrical Appliances
Sales of goods 21,015,219.00 52,139,839.35
Co., Ltd.

Sales of goods and
E3info (Hainan) Technology Co., Ltd. and its
provision of labour 12,779,347.18 7,676,760.48
subsidiaries
service

Dongguan Konka Smart Electronic Technology Co.,
Sales of goods 9,556,588.12 18,795,403.33
Ltd.

Sales of goods and
Hefei KONSEMI Storage Technology Co., Ltd. provision of labour 7,988,071.97 45,466,225.40
service




337
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Related party Amount incurred
Amount incurred
Related party transaction in the current
last year
year

Sales of goods and
Shenzhen Kangying Semiconductor Technology Co.,
provision of labour 7,902,974.42 9,193,457.83
Ltd. and its subsidiaries
service

Shenzhen Kangjia Jiapin Intelligent Electrical Provision of labour
4,770,320.84
Apparatus Technology Co., Ltd. service

Nantong Kang gian Technology Industrial Park Provision of labour
4,716,981.13 14,150,943.39
Operations and Management Co., Ltd. service

Yancheng Kangyan Information Industry Investment Provision of labour
3,282,937.63 3,539,336.04
Partnership (Limited Partnership) service

Dongguan Kangjia New Materials Technology Co.,
Sales of goods 3,406,469.40
Ltd.

Chongqing Kangxin Equity Investment Fund Provision of labour
2,462,263.85
Limited Partnership (Limited Partnership) service

Shenzhen Aimijiakang Technology Co., Ltd. Sales of goods 1,455,404.13 42,265,781.54

Sales of goods and
Anhui Kaikai Shijie E-commerce Co., Ltd. and its
provision of labour 1,413,824.79 189,148,548.38
subsidiaries
service

Yibin Kanghui Electronic Information Industry
Sales of goods 1,361,406.01
Equity Investment Partnership (Limited Partnership)

Sales of goods and
Sichuan Huayi Jiakang Technology Co., Ltd. provision of labour 83,636.22 1,095,847.95
service

HOHOELECTRICAL&FURNITURECO.,LIMITED Sales of goods 21,684,854.42

Sales of goods and
Subtotal of other related parties provision of labour 5,778,315.56 39,382,783.10
service

( 3 ) Related party leases
Lease situation
Type of leased Lease fee recognised Lease fee recognised
Lessor Lessee
assets in the current year last year

Konka Ventures Commercial
OCT Group Co. Ltd. and
Development (Shenzhen) residences and 30,302,719.98 25,078,697.16
its subsidiaries
Co., Ltd. office buildings

Commercial
OCT Group Co. Ltd. and
Konka Group Co., Ltd. residences and 1,819,825.44
its subsidiaries
office buildings


( 4 ) Related party guarantees

338
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
1 ) The Company was guarantor
Whether
Contracted Actual
the
guarantee guarantee Start date of Expiry date
Secured party Currency guarantee
amount amount guarantee of guarantee
is
(RMB'0,000) (RMB'0,000)
completed

19 January 18 January
Boluo Precision 4,000.00 1,800.00 CNY No
2023 2024

25 August 25 August
Boluo Precision 4,500.00 4,103.40 CNY No
2023 2026

31 January
Konka Circuit 10,000.00 4,307.67 CNY 19 July 2023 No
2027

14 September 13 September
Konka Circuit 5,000.00 1,085.27 CNY No
2022 2023

22 December 21 December
Konka Circuit 5,000.00 3,212.27 CNY No
2022 2023

Anhui Tong giường 3,000.00 3,000.00 CNY 2 June 2022 1 June 2023 No

19 October 31 December
Anhui Tong giường 10,000.00 6,440.00 CNY No
2023 2024

6 February 5 February
Anhui Tong giường 10,000.00 8,000.00 CNY No
2023 2024

14 August
Anhui Tong giường 5,000.00 3,600.00 CNY 9 April 2024 No
2023

20 November
Anhui Tong giường 3,000.00 3,000.00 CNY 19 May 2025 No
2023

6 January 5 January
Liaoyang Kangshun Smart 5,000.00 CNY No
2023 2024

Konka Xinyun
6,000.00 1,550.00 CNY 26 May 2022 25 May 2024 No
Semiconductor

Konka Xinyun
20,000.00 5,137.50 CNY 12 July 2021 11 July 2022 No
Semiconductor

24 November 10 January
Electronics Technology 8,500.00 6,064.29 CNY No
2022 2024

26 September 11 August
Electronics Technology 50,000.00 50,000.00 CNY No
2023 2024

24 March 23 March
Dongguan Konka 5,000.00 5,000.00 CNY No
2023 2024

Dongguan Konka 80,000.00 33,174.19 CNY 23 June 2021 7 May 2031 No

Telecommunication
7,500.00 5,000.00 CNY 23 July 2023 23 July 2024 No
Technology

Sichuan Konka 4,000.00 3,000.00 CNY 23 May 2023 26 April 2026 No



339
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Whether
Contracted Actual
the
guarantee guarantee Start date of Expiry date
Secured party Currency guarantee
amount amount guarantee of guarantee
is
(RMB'0,000) (RMB'0,000)
completed

10 November 10 November
Mobile Interconnection 7,000.00 1,870.12 CNY No
2023 2024

Yibin Smart 980.00 980.00 CNY 23 May 2023 26 April 2024 No

13 December 13 December
Chongqing Konka 38,000.00 9,280.05 CNY No
2022 2037

Xi'an Kanghong 31 December
30,000.00 6,651.43 CNY 26 May 2023 No
Technology Industry 2032

19 December 19 December
Konka Soft Electronic 975.00 41.46 CNY No
2022 2023

Ningbo Kanghr Electrical
6,000.00 CNY 2 March 2023 27 July 2024 No
Appliance

Ningbo Kanghr Electrical
6,000.00 3,000.00 CNY 13 July 2023 12 July 2024 No
Appliance

Frestec Smart Home 10,200.00 510.00 CNY 6 July 2022 4 May 2030 No

15 August 14 August
Jiangxi Konka 6,000.00 2,369.00 CNY No
2023 2024

10 March
Jiangxi Konka 990.00 990.00 CNY 9 March 2024 No
2022

Xinfeng Microcrystalline 7,200.00 6,000.00 CNY 30 June 2023 29 June 2024 No

Jiangxi High Transparent 10 March
990.00 990.00 CNY 9 March 2024 No
Substrate 2022

13 November 31 December
Yibin Kangrun 10,000.00 10,000.00 CNY No
2020 2024

31 August 31 August
Anhui Konka 5,500.00 667.02 CNY No
2023 2024

22 September 21 September
Anhui Konka 18,000.00 11,397.31 CNY No
2023 2024

10 August
Anhui Konka 10,215.95 8,591.07 CNY 15 July 2031 No
2021

29 October 26 October
Anhui Konka 7,000.00 5,000.00 CNY No
2021 2026

24 October 26 October
Anhui Konka 7,000.00 5,000.00 CNY No
2022 2026

19 September 18 September
Anhui Konka 7,000.00 7,000.00 CNY No
2022 2023

Anhui Konka 5,000.00 984.60 CNY 25 June 2023 24 June 2028 No



340
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Whether
Contracted Actual
the
guarantee guarantee Start date of Expiry date
Secured party Currency guarantee
amount amount guarantee of guarantee
is
(RMB'0,000) (RMB'0,000)
completed

Shandong Econ Technology 30 September 29 September
3,747.44 3,040.56 CNY No
Co., Ltd. 2022 2024

Shandong Econ Technology 23 November
2,748.12 2,748.10 CNY 23 May 2024 No
Co., Ltd. 2022

Shandong Econ Technology
1,498.97 1,498.97 CNY 22 May 2023 21 May 2024 No
Co., Ltd.

Shandong Econ Technology 11 August
3,747.44 3,327.88 CNY 10 May 2023 No
Co., Ltd. 2023

Shandong Econ Technology
Co., Ltd.
4,996.58 1,747.03 CNY 5 July 2023 21 May 2024 No


Shandong Econ Technology
2,498.29 2,435.11 CNY 19 July 2023 18 July 2024 No
Co., Ltd.

Shandong Econ Technology 28 August
999.32 736.00 CNY 11 June 2024 No
Co., Ltd. 2023

Shandong Econ Technology 29 December 28 December
1,374.06 1,374.06 CNY No
Co., Ltd. 2023 2024

Shandong Econ Technology 28 December 27 December
2,498.29 CNY No
Co., Ltd. 2023 2024

Foshan Zhu gian g Media
21 March
Creative Park Cultural 980.00 941.66 CNY 17 May 2022 No
2023
Development Co., Ltd.

8 September 8 September
OCT Group 60,000.00 60,000.00 CNY No
2022 2025

18 October 18 October
OCT Group 60,000.00 60,000.00 CNY No
2022 2025

22 September 22 September
OCT Group 50,000.00 50,000.00 CNY No
2023 2026

13 December 13 December
OCT Group 30,000.00 30,000.00 CNY No
2023 2026


2 ) As the secured party
Guarantee Whether the
Start date of Expiry date of
Guarantor amount Currency guarantee is
guarantee guarantee
(RMB'0,000) completed

15 September 14 September
Electronics Technology 41,000.00 CNY No
2022 2023

OCT Group 100,000.00 CNY 8 January 2021 8 January 2024 No

OCT Group 50,000.00 CNY 21 May 2021 21 May 2024 No

OCT Group 80,000.00 CNY 9 July 2021 9 July 2024 No

341
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Guarantee Whether the
Start date of Expiry date of
Guarantor amount Currency guarantee is
guarantee guarantee
(RMB'0,000) completed

8 September 8 September
OCT Group 60,000.00 CNY No
2022 2025

18 October 18 October
OCT Group 60,000.00 CNY No
2022 2025

OCT Group 120,000.00 CNY 14 July 2022 14 July 2025 No

OCT Group 90,000.00 CNY 22 June 2022 21 June 2024 No

OCT Group 68,750.00 CNY 24 June 2021 23 June 2024 No

22 August
OCT Group 49,500.00 CNY 23 August 2022 No
2025

22 December 22 December
OCT Group 24,000.00 CNY No
2022 2025

18 January 18 January
OCT Group 70,000.00 CNY No
2023 2026

22 September 22 September
OCT Group 50,000.00 CNY No
2023 2026

13 December 20 December
OCT Group 30,000.00 CNY No
2023 2026

14 August
Jiangxi Xinzixin Real Estate Co., Ltd. 1,160.81 CNY 15 August 2023 No
2024

Jiangxi Xinzixin Real Estate Co., Ltd. 485.10 CNY 10 March 2022 9 March 2024 No

Jiangxi Xinzixin Real Estate Co., Ltd. 2,940.00 CNY 30 June 2023 29 June 2024 No

Jiangxi Xinzixin Real Estate Co., Ltd. 485.10 CNY 10 March 2022 9 March 2024 No

13 November 31 December
Shandong Econ Technology Co., Ltd. 3,300.00 CNY No
2020 2024

Chuzhou State-owned Assets 31 August
146.74 CNY 31 August 2023 No
Management Co., Ltd. 2024

Chuzhou State-owned Assets 22 September 21 September
2,507.41 CNY No
Management Co., Ltd. 2023 2024

Chuzhou State-owned Assets
1,890.03 CNY 10 August 2021 15 July 2031 No
Management Co., Ltd.

Chuzhou State-owned Assets 29 October 26 October
1,100.00 CNY No
Management Co., Ltd. 2021 2026

Chuzhou State-owned Assets 24 October 26 October
1,100.00 CNY No
Management Co., Ltd. 2022 2026

Chuzhou State-owned Assets 19 September 18 September
1,540.00 CNY No
Management Co., Ltd. 2022 2023


Chuzhou State-owned Assets 216.61 CNY 25 June 2023 24 June 2028 No

342
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Guarantee Whether the
Start date of Expiry date of
Guarantor amount Currency guarantee is
guarantee guarantee
(RMB'0,000) completed
Management Co., Ltd.


31 December 31 December
Wu Guoren 875.00 USD No
2019 2024

31 December 31 December
Wu Guoren 2,425.00 USD No
2019 2024

31 December 31 December
Xiao Yongsong 840.00 USD No
2019 2024

31 December 31 December
Xiao Yongsong 2,328.00 USD No
2019 2024

Shenzhen Unifortune Supply Chain 31 December
1,403.85 USD 21 June 2021 No
Management Co., Ltd. 2022

Shenzhen Unifortune Supply Chain 31 December
867.30 USD 21 June 2021 No
Management Co., Ltd. 2022

Guizhou Huajinrun Technology Co. 31 December
381.15 USD 1 January 2022 No
Ltd. 2025

Guizhou Huajinrun Technology Co. 31 December
157.50 USD 1 January 2022 No
Ltd. 2025

Shenzhen Henglongtong Technology 31 December
241.40 USD 1 January 2022 No
Co., Ltd. 2025

Shenzhen Henglongtong Technology 31 December
99.75 USD 1 January 2022 No
Co., Ltd. 2025

10 November 31 December
AUJET INDUSTRY LIMITED 3,227.63 USD No
2021 2023

10 November 31 December
AUJET INDUSTRY LIMITED 89.18 USD No
2021 2023

31 December
AUJET INDUSTRY LIMITED 1,029.00 USD 20 July 2020 No
2023

15 October 14 October
Zhu Xinming 12,446.00 CNY No
2022 2023

31 December
Zhu Xinming 3,399.49 CNY 1 January 2023 No
2023

19 February 18 February
Zhu Xinming 13,249.19 CNY No
2023 2024

28 February
Zhu Xinming 6,860.00 CNY 1 March 2023 No
2024

Zhu Xinming 2,330.54 CNY 9 March 2023 8 March 2024 No

30 September
Zhu Xinming 2,156.00 CNY 1 April 2023 No
2023



343
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Guarantee Whether the
Start date of Expiry date of
Guarantor amount Currency guarantee is
guarantee guarantee
(RMB'0,000) completed

13 January 31 December
Zhu Xinming 443.45 CNY No
2023 2023

31 December
Zhu Xinming 44.05 CNY 30 March 2023 No
2023

31 December
Zhu Xinming 443.45 CNY 14 April 2023 No
2023

31 December
Zhu Xinming 44.05 CNY 30 June 2023 No
2023

31 December
Zhu Xinming 443.45 CNY 14 July 2023 No
2023

11 October 31 December
Zhu Xinming 44.05 CNY No
2023 2023

13 October 31 December
Zhu Xinming 149.45 CNY No
2023 2023

29 December 31 December
Zhu Xinming 44.05 CNY No
2023 2023

28 February 27 February
Zhu Xinming 490.00 CNY No
2023 2024

31 December
Zhu Xinming 5,109.05 CNY 1 January 2023 No
2023

13 January 31 December
Zhu Xinming 252.63 CNY No
2023 2023

13 January 31 December
Zhu Xinming 101.77 CNY No
2023 2023

31 December
Zhu Xinming 203.63 CNY 14 April 2023 No
2023

31 December
Zhu Xinming 1,862.90 CNY 1 January 2023 No
2023

17 February 31 December
Zhu Xinming 223.85 CNY No
2023 2023

31 December
Zhu Xinming 93.12 CNY 8 March 2023 No
2023

31 December
Zhu Xinming 101.35 CNY 19 May 2023 No
2023

31 December
Zhu Xinming 93.12 CNY 8 June 2023 No
2023

8 September 31 December
Zhu Xinming 93.12 CNY No
2023 2023

Zhu Xinming 62.25 CNY 7 December 31 December No


344
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Guarantee Whether the
Start date of Expiry date of
Guarantor amount Currency guarantee is
guarantee guarantee
(RMB'0,000) completed
2023 2023


31 December
Hu Zehong, Liang Ruiling, Dai Yaojin 2,205.00 CNY 1 July 2018 No
2025

31 December
Hu Zehong, Liang Ruiling, Dai Yaojin 4,899.02 CNY 1 July 2018 No
2025

Suiyong Rongxin Asset Management
2,450.00 CNY 1 January 2018 30 June 2024 No
Co., Ltd.

Suiyong Rongxin Asset Management 31 December
2,842.00 CNY 1 January 2018 No
Co., Ltd. 2023

Shenzhen Henglongtong Technology
Co., Ltd., Guizhou Huajinrun
Technology Co. Ltd., Huaying
31 December
Gaokede Electronics Technology Co., 735.00 CNY 1 January 2022 No
2025
Ltd., Huaying Gaokelong Electronics
Technology Co., Ltd., Shenzhen Baili
Yong xing Technology Co., Ltd.

Shenzhen Henglongtong Technology
Co., Ltd., Guizhou Huajinrun
Technology Co. Ltd., Huaying
31 December
Gaokede Electronics Technology Co., 488.37 CNY 1 January 2022 No
2025
Ltd., Huaying Gaokelong Electronics
Technology Co., Ltd., Shenzhen Baili
Yong xing Technology Co., Ltd.

Shenzhen Henglongtong Technology
Co., Ltd., Guizhou Huajinrun
Technology Co. Ltd., Huaying
31 December
Gaokede Electronics Technology Co., 552.72 CNY 1 January 2022 No
2025
Ltd., Huaying Gaokelong Electronics
Technology Co., Ltd., Shenzhen Baili
Yong xing Technology Co., Ltd.

Chuzhou Hanshang Electric Appliance
4,533.96 CNY 20 May 2021 19 May 2024 No
Co., Ltd.

Shenzhen Qianhai Datang Technology 17 November 16 November
441.00 CNY No
Co., Ltd. 2023 2026

15 December 5 November
Konka Ventures 1,322.54 CNY No
2021 2022


( 5 ) Loans from/to related parties
Amount
Related party Currency Start date Maturity
(RMB'0,000)
Borrowing:

OCT Group 81,091.00 CNY 10 January 2022 19 January 2025

OCT Group 50,000.00 CNY 19 May 2022 18 May 2025

OCT Group 70,000.00 CNY 26 May 2022 25 May 2025

345
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Amount
Related party Currency Start date Maturity
(RMB'0,000)

Chuzhou Hanshang Electric
10,535.00 CNY 1 February 2022 31 December 2023
Appliance Co., Ltd.

Chuzhou Hanshang Electric
490.00 CNY 30 May 2023 31 December 2023
Appliance Co., Ltd.

Chuzhou Hanshang Electric
1,837.50 CNY 10 November 2022 31 December 2023
Appliance Co., Ltd.

Chuzhou Hanshang Electric
2,450.00 CNY 2 August 2023 2 August 2024
Appliance Co., Ltd.

Chuzhou Hanshang Electric
980.00 CNY 14 February 2023 13 February 2024
Appliance Co., Ltd.

Shandong Econ Technology Co., Ltd. 33.00 CNY 31 March 2022 19 March 2024

Shandong Econ Technology Co., Ltd. 31.35 CNY 2 June 2021 19 March 2024

Shandong Econ Technology Co., Ltd. 20.13 CNY 4 June 2021 19 March 2024

Shandong Econ Technology Co., Ltd. 1,536.15 CNY 13 August 2021 19 March 2024

Shandong Econ Technology Co., Ltd. 285.85 CNY 13 October 2021 19 March 2024

Shandong Econ Technology Co., Ltd. 40.26 CNY 17 December 2021 19 March 2024

Shandong Econ Technology Co., Ltd. 99.26 CNY 16 February 2022 19 March 2024

Shandong Econ Technology Co., Ltd. 95.96 CNY 15 May 2022 28 February 2024

Shandong Econ Technology Co., Ltd. 39.60 CNY 16 June 2022 28 February 2024

Shandong Econ Technology Co., Ltd. 1,070.92 CNY 23 June 2022 28 February 2024

Shandong Econ Technology Co., Ltd. 49.50 CNY 19 September 2022 28 February 2024

Shandong Econ Technology Co., Ltd. 33.00 CNY 19 December 2022 28 February 2024

Shandong Econ Technology Co., Ltd. 97.02 CNY 24 February 2023 28 February 2024

Kangkong Venture Capital
245.00 CNY 21 July 2022 18 July 2024
(Shenzhen) Co., Ltd.

Beijing Xuri Sheng xing Technology
228.67 CNY 5 December 2022 30 November 2024
Co., Ltd.

Total 221,289.17

Lending:

Dongguan Guankang Yuhong
2,223.19 CNY 6 August 2022 25 September 2024
Investment Co., Ltd.


346
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Amount
Related party Currency Start date Maturity
(RMB'0,000)

Dongguan Guankang Yuhong
17,376.81 CNY 6 August 2022 25 September 2024
Investment Co., Ltd.

Chuzhou Kangxin Health Industry
13,288.00 CNY 18 December 2022 21 December 2024
Development Co., Ltd.

Chuzhou Kangxin Health Industry
2,000.00 CNY 18 December 2022 21 December 2024
Development Co., Ltd.

Chuzhou Kangxin Health Industry
735.00 CNY 5 January 2023 21 December 2024
Development Co., Ltd.

Chuzhou Kangxin Health Industry
59.45 CNY 5 January 2023 21 December 2024
Development Co., Ltd.

Chuzhou Kangxin Health Industry
1,240.03 CNY 18 December 2022 21 December 2024
Development Co., Ltd.

Chuzhou Kangxin Health Industry
16,758.00 CNY 22 March 2023 21 December 2024
Development Co., Ltd.

Chuzhou Kangxin Health Industry
1,359.26 CNY 21 March 2023 21 December 2024
Development Co., Ltd.

Chuzhou Kangxin Health Industry
109.95 CNY 21 March 2023 21 December 2024
Development Co., Ltd.

Chuzhou Kangxin Health Industry
1,344.36 CNY 22 March 2023 21 December 2024
Development Co., Ltd.

Chuzhou Kangxin Health Industry
2,080.72 CNY 18 October 2023 21 December 2024
Development Co., Ltd.

Chuzhou Kangxin Health Industry
562.97 CNY 22 December 2023 21 December 2024
Development Co., Ltd.

Sichuan Chengrui Real Estate Co.,
14,724.50 CNY 21 January 2022 15 April 2025
Ltd.

Yantai Kangyue Investment Co., Ltd. 12,852.70 CNY 16 December 2020 5 November 2022

Yantai Kangyun Industrial
10,020.00 CNY 23 November 2021 31 March 2024
Development Co., Ltd.

Yantai Kangyun Industrial
949.00 CNY 25 August 2022 31 March 2024
Development Co., Ltd.

Yantai Kangyun Industrial
1,394.00 CNY 25 August 2022 31 March 2024
Development Co., Ltd.

Yantai Kangyun Industrial
323.00 CNY 25 August 2022 31 March 2024
Development Co., Ltd.

Yantai Kangyun Industrial
564.00 CNY 25 August 2022 31 March 2024
Development Co., Ltd.

347
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Amount
Related party Currency Start date Maturity
(RMB'0,000)

Yantai Kangyun Industrial
1,020.00 CNY 17 March 2022 31 March 2024
Development Co., Ltd.

Yantai Kangyun Industrial
3,400.00 CNY 23 May 2022 31 March 2024
Development Co., Ltd.

Yantai Kangyun Industrial
2,500.00 CNY 1 June 2022 31 March 2024
Development Co., Ltd.

Yantai Kangyun Industrial
2,430.00 CNY 15 November 2022 31 March 2024
Development Co., Ltd.

Chongqing Lanlv Moma Real Estate
18,843.00 CNY 25 November 2020 24 November 2023
Development Co., Ltd.

Sichuan Hongxinchen Real Estate
19,879.55 CNY 15 September 2022 27 February 2024
Development Co., Ltd.

Shandong Econ Technology Co., Ltd. 18,315.11 CNY 20 December 2023 31 December 2023

Shandong Econ Technology Co., Ltd. 4,996.58 CNY 21 December 2023 20 December 2024

Total 171,349.18

( 6 ) Asset transfer and debt restructuring of related parties

Related party Amount incurred in Amount incurred last
Related party
transaction the current year year

Transfer of patents,
OCT Group Co., Ltd. and its
software copyrights and 12,843,396.23
subsidiaries and associates
trademarks

Total 12,843,396.23

( 7 ) Remuneration for key management personnel

The current year
Project Last year (RMB'0,000)
(RMB'0,000)

Total remuneration 805.08 2,206.85

3. Balance of amount receivable and payable by related parties
( 1 ) Receivables

Closing balance Opening balance
Related party
Provision for bad Provision for bad
Book balance Book balance
debts debts

Accounts receivable:




348
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Closing balance Opening balance
Related party
Provision for bad Provision for bad
Book balance Book balance
debts debts

OCT Group Co., Ltd.
and its subsidiaries and 100,590,722.52 15,162,359.88 156,687,630.71 8,433,199.71
associates

Shenzhen Yaode
Technology Co., Ltd. 145,562,210.29 145,562,210.29 143,135,135.62 121,664,865.28
and its subsidiaries

HOHOELECTRICAL
&FURNITURECO.,LI 124,378,346.69 51,863,807.49 123,273,472.66 18,429,711.73
MITED

Anhui Kaikai Shijie E-
commerce Co., Ltd. 60,994,542.80 1,879,460.35 39,215,316.77 32,913,147.45
and its subsidiaries

Shenzhen
Kanghong xing 
39,226,376.64 39,214,097.96 52,156,655.05 1,063,995.77
Intelligent Technology
Co., Ltd.

Chuzhou Hanshang
Electric Appliance Co., 38,536,165.52 786,137.78 47,638,172.10 2,368,282.48
Ltd.

Shenzhen Jielunte
Technology Co., Ltd.
8,538,236.25 173,326.20 13,523,856.80 410,843.28
and its subsidiaries and
associates

Shenzhen Konda E-
display Co., Ltd. and its 2,038,868.80 130,671.94 10,824,609.83 220,822.05
subsidiaries

Subtotal of other
36,068,461.04 4,978,006.25 22,671,223.40 675,458.06
related parties

Total 555,933,930.56 259,750,078.15 609,126,072.94 186,180,325.81

Financing accounts
receivable/Notes
receivable:

Korea Electric Group
Co., Ltd. and its 10,000,000.00 103,340,000.00
subsidiaries

Chuzhou Hanshang
Electric Appliance Co., 10,000,000.00 5,028,746.39
Ltd.

Anhui Kaikai Shijie E-
commerce Co., Ltd. 63,064.76
and its subsidiaries

349
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Closing balance Opening balance
Related party
Provision for bad Provision for bad
Book balance Book balance
debts debts

Total 20,000,000.00 108,431,811.15

Dividends receivable

Chongqing Qingjia
272,999.43
Electronics Co., Ltd.

Shenzhen Jielunte
941,482.38
Technology Co., Ltd.

Total 941,482.38 272,999.43

Other receivables:

Jiangxi Meiji
93,512,640.31 93,512,640.31 93,512,640.31 86,901,651.51
Enterprise Co., Ltd.

Dai Rong xing 86,150,945.74 86,150,945.74 83,058,831.58 83,058,831.58

Shenzhen
Kanghong xing 
39,888,921.64 39,888,921.64 39,888,921.64 36,024,193.48
Intelligent Technology
Co., Ltd.

OCT Group Co., Ltd.
and its subsidiaries and 31,185,288.31 20,608,710.48 35,760,987.33 20,304,912.84
associates

Huanjia Group Co.,
25,083,675.53 24,582,002.02 25,083,675.53 24,582,002.02
Ltd.

Dongguan Guankang
Yuhong Investment 22,000,000.00 660,000.00 22,000,000.00 220,000.00
Co., Ltd.

HOHOELECTRICAL
&FURNITURECO.,LI 2,485,213.19 1,612,406.32 2,443,773.67 554,492.25
MITED

Hu Zehong 1,395,042.29 135,057.89 2,058,174.06 41,986.75

Chongqing Liangshan
Industrial Investment 75,330,416.70 1,536,740.51
Co., Ltd.

Subtotal of other
145,049.83 2,993.94 159,634.37 3,230.02
related parties

Total 301,846,776.84 267,153,678.34 379,297,055.19 253,228,040.96

Prepayments:




350
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Closing balance Opening balance
Related party
Provision for bad Provision for bad
Book balance Book balance
debts debts

OCT Group Co., Ltd.
and its subsidiaries and 238,185.12 1,094,665.28
associates

Shenzhen Jielunte
Technology Co., Ltd. 7,764.63
and its subsidiaries

Shenzhen Kangying
Semiconductor
5,720,375.37
Technology Co., Ltd.
and its subsidiaries

Pu giường Jiakang
3,176,682.44
Technology Co, Ltd.

Subtotal of other
1,184,075.41
related parties

Total 245,949.75 11,175,798.50

Other current assets:

Chuzhou Kangxin
Health Industry 396,256,021.05 366,191,797.92
Development Co., Ltd.

Yantai Kangyun
Industrial Development 256,452,466.70 238,121,355.60
Co., Ltd.

Chongqing Lanlv
Moma Real Estate 235,830,613.25 220,546,846.61
Development Co., Ltd.

Shandong Econ
Technology Co., Ltd. 233,116,949.03 217,760,251.21
and its subsidiaries

Dongguan Guankang
Yuhong Investment 224,838,028.99 183,151,149.03
Co., Ltd.

Yantai Kangyue
170,712,417.56 18,682,100.00 160,287,449.78
Investment Co., Ltd.

Sichuan Chengrui Real
168,476,988.84 158,533,783.32
Estate Co., Ltd.

Sichuan Hongxinchen
Real Estate 228,799,064.74
Development Co., Ltd.

Total 1,914,482,550.16 18,682,100.00 1,544,592,633.47

351
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
( 2 ) Payables
Book balance at the Book balance at the
Related party
end of the year beginning of the year

Accounts payable:

HOHOELECTRICAL&FURNITURECO.,LIMITED 10,195,877.56 6,083,652.55

Chuzhou Hanshang Electric Appliance Co., Ltd. 43,592,692.34 22,429,429.76

Shenzhen Jielunte Technology Co., Ltd. and its subsidiaries
33,987,442.17 13,942,717.31
and associates

OCT Group Co., Ltd. and its subsidiaries and associates 28,693,864.79 13,114,183.37

Shenzhen Konda E-display Co., Ltd. and its subsidiaries 10,343,033.76 12,879,895.22

Anhui Kaikai Shijie E-commerce Co., Ltd. and its
4,614,860.81 4,615,128.91
subsidiaries

Korea Electric Group Co., Ltd. and its subsidiaries 4,374,416.65 2,609,330.74

Panxu Intelligence Co., Ltd. and its subsidiaries 3,558,734.12 5,894,192.83

Dongguan Konka Smart Electronic Technology Co., Ltd. 288,114.11 1,730,506.79

Subtotal of other related parties 62,595,100.98 6,167,532.67

Total 202,244,137.29 89,466,570.15

Notes payable:

Korea Electric Group Co., Ltd. and its subsidiaries 4,709,353.26 9,889,686.67

Dongguan Kangjia New Materials Technology Co., Ltd. 4,352,821.66 5,664,319.21

Panxu Intelligence Co., Ltd. and its subsidiaries 1,962,738.39 4,425,575.22

Shenzhen Jielunte Technology Co., Ltd. and its subsidiaries 916,829.48 4,868,677.92

Chuzhou Hanshang Electric Appliance Co., Ltd. 13,000,000.00

Total 11,941,742.79 37,848,259.02

Contractual liabilities/other current liabilities:

OCT Group Co., Ltd. and its subsidiaries and associates 43,675,417.58 42,395,460.49

Shenzhen Konda E-display Co., Ltd. and its subsidiaries 28,903,907.67 2,873,318.85

Shenzhen Aimijiakang Technology Co., Ltd. (formerly
1,030,654.81 2,541,156.83
known as Sichuan Aimijiakang Technology Co., Ltd.)

Shandong Kangfei Intelligent Electrical Appliances Co.,
246,708.55 1,328,665.36
Ltd.



352
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Book balance at the Book balance at the
Related party
end of the year beginning of the year

Subtotal of other related parties 1,412,447.04 1,625,651.76

Total 75,269,135.65 50,764,253.29

Other payables:

Chuzhou Hanshang Electric Appliance Co., Ltd. 195,705,860.89 185,043,644.73

Shandong Econ Technology Co., Ltd. and its subsidiaries 42,146,282.34 42,331,626.74

OCT Group Co., Ltd. and its subsidiaries and associates 23,291,255.06 5,897,248.07

Central Enterprises in poverty-stricken areas (Jiangxi)
9,600,000.00 2,400,000.00
Industrial Investment Funds Partnership (L.P.)

Beijing Xuri Sheng xing Technology Co., Ltd. 2,536,047.85 2,396,943.13

Konka Ventures Development (Shenzhen) Co., Ltd.
(formerly known as "Konka Ventures Development 2,523,500.05 2,483,024.67
(Shenzhen) Co., Ltd." )

Dongguan Kangjia New Materials Technology Co., Ltd. 410,526.24 209,400.00

E3info (Hainan) Technology Co., Ltd. and its subsidiaries
63,099.88 163,730.25
and associated enterprises

Guangdong Wanrundaoheng Culture Tourism Development
83,480,206.21
Co., Ltd.

Chongqing Kang gian Optoelectronics Technology Co., Ltd. 8,029,369.86

Subtotal of other related parties 11,052,687.80 10,210,205.65

Total 287,329,260.11 342,645,399.31

4. Related party commitments
The Group did not have any related party commitments.
5. Others
The Group did not have any related party matters.
XIV. Commitments and Contingencies
1. Significant commitments
(1) Capital commitments

Item Closing balance Opening balance

Contract signed but hasn't been recognised
in financial statements

Commitment on construction and purchase
of long-lived assets


353
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Large amount contract 295,615,545.67 523,553,381.89

Foreign investment commitments

Total 295,615,545.67 523,553,381.89

(2) Other commitments
As of 31 December 2023, there were no other significant commitments for the Company to disclose.
2. Contingencies
The Group's material contingencies requiring disclosure are set out below:
(1) Before the Company acquired Jiangxi Konka, Jiangxi Konka and its subsidiaries Xinfeng
Microcrystalline and Jiangxi High Transparent Substrate (formerly known as Nano-Crystallised
Glass) provided joint and several liability guarantee for the loans from Nanchang Rural
Commercial Bank Co., Ltd. to Jiangxi Xinxin Jian'an Engineering, Jiangxi Zhongyi Decorative
Material and Jiangxi Shanshi Science and Technology, related parties of former controlling
shareholders of Jiangxi Konka, and Nanchang Rural Commercial Bank Co., Ltd. then transferred
the claims to China Great Wall AMC Jiangxi Branch. For the failure of Jiangxi Xinxin Jian'an
Engineering, Jiangxi Zhongyi Decorative Material and Jiangxi Shanshi Science and Technology to
repay the borrowings on time, China Great Wall AMC Jiangxi Branch filed a lawsuit requesting
Jiangxi Xinxin Jian'an Engineering, Jiangxi Zhongyi Decorative Material and Jiangxi Shanshi
Science and Technology to repay the loan principal amounting to RMB300 million and the
liquidated damage and interest arising from it and guarantors Jiangxi Konka, Jiangxi High
Transparent Substrate and Xinfeng Microcrystalline to bear joint and several liability for such
debts.
On 31 October 2019, the Higher People's Court of Jiangxi Province ruled in the first instance that
Jiangxi Xinxin Jian'an Engineering, Jiangxi Zhongyi Decorative Material, Jiangxi Shanshi
Technology should repay to China Great Wall AMC Jiangxi Branch the loan principal of
RMB300 million and the interest and liquidated damage arising from it within 10 days from the
effective date of the judgment, and Jiangxi Konka New Material, Zhu Xinming, Leng Sumin,
Nano-Crystallised Glass, Xinfeng Microcrystalline should bear joint and several liability for all
debts recognised in this judgment. The defendants appealed against the verdict of the first instance
and the Supreme People's Court accepted the appeal. On 24 March 2021, the Supreme People's
Court made the following ruling: I. Civil Judgment (2018) G.M.CH. No. 110 made by the Higher
People's Court of Jiangxi Province is abrogated; II. This case is remanded to the Higher People's
Court of Jiangxi Province for retrial. As of the date of issuance of this report, the first instance of
the retrial was decided, an appeal had been filed, and the second instance of the retrial is in
progress.
The actual controller of Jiangxi Konka New Materials, Zhu Xinming, and his spouse, Leng Sumin,
Jiangxi Xinzixin Real Estate Co., Ltd., Zhu Zilong, Zhu Qingming and Zeng Xiaohong, as
guarantors, provided a total of approximately RMB143 million of real estate mortgage guarantee
to Great Wall AMC for the above loans. Zhu Xinming and Leng Sumin also provided joint
liability guarantees. In order to avoid the adverse impact of this case on the Company, the
Company has agreed in the acquisition agreement of Jiangxi Konka, Xinfeng Microcrystalline and
nanometre microcrystalline that all contingent debts incurred by Jiangxi Konka by the original
shareholders of Konka new material in the form of joint and several liability. Jiangxi Xinzixin
Real Estate Co., Ltd. has held a total of approximately RMB243 million of real estate assets as the
case of the anti-guarantee mortgage to Konka group and went through the mortgage registration
procedures. As of the date of this report, the case is still on trial and the above commercial
acceptance bill has not been honoured.
(2) As for the dispute of the Company with Luo Zaotong, Luo Jingxia, Luo Zongyin, Luo Zongwu
354
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
and Shenzhen Yaode Technology Co., Ltd. on share repurchase, since the other party did not
actively perform the repurchase obligation, the Company filed a lawsuit with the People's Court of
Nanshan District, Shenzhen. The amount of the subject matter involved in the lawsuit is RMB249
million. On 22 November 2021, the Company applied to the People's Court of Nanshan District,
Shenzhen, for property preservation. On 11 January 2023, the People's Court of Nanshan District,
Shenzhen, rendered a verdict of the first instance, ruling that Luo Zaotong, Luo Jingxia, Luo
Zongyin and Luo Zongwu pay the repurchase amount of RMB172 million plus the sum of interest
calculated at 12% per annum from 6 April 2017 to the date of payment of the equity repurchase by
the defendant Luo Zaotong, Luo Jingxia, Luo Zongyin and Luo Zongwu. As of the date of
issuance of this report, the case was executed in progress.
(3) As the acceptor failed to pay the commercial acceptance bills held by the Company upon
maturity, the Company, as the plaintiff, requested debtors Hongtu Sanpower Technology Co., Ltd.,
Jiangsu Hongtu High Technology Co., Ltd., Sanpower Group Co., Ltd., Nanjing Jiongjiong
Electronic Technology Co., Ltd. and Shenzhen Qianhai Benniu Agricultural Technology Co., Ltd.
to RMB200 million bear joint and several liability for the bills and the overdue interest. In July
2019, the company filed a lawsuit with the court, and the court has preserved the defendant's
corresponding property. As of the date of issuance of this report, the case was under trial.
(4) The amount of the subject matter involved in the dispute between the Company and Wuhan
Jialian Agricultural Technology Development Co., Ltd., Peng Chaojun, He Jiaguo, He Jiayi, Liang
Xiangzhou, Xu Yizheng, He Fan, Pang Huasheng, Song Liangming, and Liang Xiangmei over the
right of recourse for bills is RMB200 million and the corresponding interest. In September 2020,
the Company filed a lawsuit with the Wuhan Intermediate People's Court, and the court ordered
the defendant to pay Konka Group the principal amount of the note of RMB200 million and
relevant overdue interest. An amount of RMB38,200,000 was recovered through the execution of
the case. The defendant applied for retrial during the execution of the case. As of the date of
issuance of this report, the case was in retrial.
(5) The amount of the subject matter involved in the dispute between the Company's subsidiary
Konka Unifortune and Shenzhen Yaode Technology Co., Ltd., Dongsheng Xinluo Technology
(Shenzhen) Co., Ltd., Shenzhen Hongyao Dingsheng Investment Management Co., Ltd.,
Shenzhen Xiangrui Yingtong Investment Management Co., Ltd., Luo Jingxia, Luo Zongwu, Luo
Zongyin, Luo Zaotong and Luo Saiyin over contracts is RMB155 million. On 8 September 2022,
the court issued a judgment in favour of the Company's subsidiary. As of the date of issuance of
this report, the case was executed in progress.
(6) As the acceptor failed to pay the commercial bills held by the Company upon maturity, the
Company, as the plaintiff, filed a lawsuit with the court on the matured bills amounting to
RMB300 million, requesting the bill acceptor Shanghai Huaxin and prior parties involved to bear
joint and several liability for the bills and liquidated damage and interest. As of the date of
issuance of this report, the case involving RMB150 million is in compulsory execution and
shareholders have been added as persons to be executed in this case. For the remaining RMB150
million, the defendants have been ordered to pay the Company the bills and interest, which is now
in compulsory execution. As of the date of issuance of this report, an amount of RMB1,115,000
had been recovered through the execution of the case, and the case was executed in progress.
(7) The amount of the subject matter involved in the dispute between the Company's subsidiaries
Frestec Refrigeration, Anhui Konka, Konka Material and Anhui Tong giường (plaintiff) and
Shantou Meisen Technology Co., Ltd., Shenzhen Meisenyuan Plastic Electronics Co., Ltd., Lin
Yuanqin, Huang Ruirong, Jiangsu Huadong Hardware Zone Co., Ltd., Chuangfu Commerce &
Trade Plaza Real Estate Development (Huizhou) Co., Ltd. and Puning Junlong Trade Co., Ltd.
(defendants) over contracts is RMB380 million. As of the date of issuance of this report, the
portion of the case, related to Xinfei and Meisen, was in trial, while the rest case was executed in
progress.

355
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
(8) A case has been filed on the dispute over the sales and purchase contracts between the
Company's subsidiary Konka Huanjia (plaintiff) and 38 companies (defendant) including Huanjia
Group Co., Ltd. and Dalian Jinshunda Material Recycling Co., Ltd., etc. The amount of the subject
matter involved in it is RMB890 million. Konka Huanjia has applied for the court to seal up and
freeze the defendant's corresponding property. In the case involving RMB322 million of litigation,
the court delivered a ruling of the first instance to Kangjia in March 2023, rejecting the suit of
Kangjia Huanjia. The remaining cases, involving RMB568 million, were decided by the court for
the first instance in December 2022, and Kangjia Huanjiadun has appealed to the Liaoning
Provincial High People's Court. As of the date of issuance of this report, the case involving
RMB322 million of litigation was closed, while the cases, involving RMB568 million, were
remanded for retrial. It is currently in the first instance of the retrial.
(9) The amount of the subject matter involved in the dispute between the Company's subsidiary
Dongguan Konka (plaintiff) and Dongguan Gaoneng Polymer Materials Co., Ltd., Wang Dong,
Shenzhen Xinlian Xingyao Trading Co., Ltd., Shenzhen Jinchuan Qianchao Network Technology
Co., Ltd., Puning Junlong Trading Co., Ltd. and Huang Zhihao (defendants) over sales and
purchase contracts is RMB90 million. In December 2020 the Company filed a lawsuit with the
court and obtained a judgment in its favour in June 2023. As of the date of issuance of this report,
the case was executed in progress.
(10) As the acceptor failed to pay the commercial bills held by the Company upon maturity, the
Company, as the plaintiff, filed a lawsuit with the court on the matured bills amounting to RMB78
million, requesting the court to order Hefei Huajun Trading Co., Ltd. and Wuhan Jialian
Agricultural Technology Development Co., Ltd. to pay the Company the bills and the interest for
default, and applied for property preservation. The case executed a return of RMB2 million, and
the Company is applying with the court for adding shareholders as persons to be executed. As of
the date of issuance of this report, an amount of RMB1,643,500 had been recovered through the
execution of the case, and the case was executed in progress.
(11) The amount of the subject matter involved in the dispute between the Company's subsidiary
Konka Electronic Materials (formerly known as Konka Factoring) (the plaintiff) and Tahoe Group
Co., Ltd., Fuzhou Taijia Enterprise Co., Ltd. and Xiamen Lian giường Micro-electronics Co., Ltd.
(the defendants) over the right of recourse for bills is RMB50 million and the corresponding
interest. On 1 September 1 2021, the Intermediate People's Court of Xiamen Municipality, Fu gian 
Province, ordered the defendants to pay the plaintiff e-commercial acceptance bills of RMB50
million and the corresponding interest. On 4 January 2022, the compulsory enforcement was filed.
The case executed a return of RMB43 million. As of the date of issuance of this report, the case
was executed in progress.
(12) The amount of the subject matter involved in the dispute between the Company (plaintiff) and
China Energy Electric Fuel Co., Ltd., China Energy (Shanghai) Enterprise Co., Ltd., Shanghai
Nengping Enterprise Co., Ltd. and Shenzhen Qianhai Baoying Commercial Factoring Co., Ltd.
(defendants) over the right of recourse for bills is RMB50 million and the corresponding interest.
In September 2018, the company filed a lawsuit with the Shenzhen Intermediate People's Court,
and the court has preserved the defendant's corresponding property. The judgment of this case has
come into effect. The court ordered China Energy Electric Fuel Co., Ltd. and other defendants to
pay the Company the bills of RMB50 million and the interest. As of the date of issuance of this
report, an amount of RMB60,400 had been recovered through the execution of the case, the case
was executed in progress, and the Company applied with the court for adding shareholders as
persons to be executed.
(13) The amount of the subject matter involved in the dispute between the Company's subsidiary
Anhui Konka (plaintiff) and Makena Electronic (Hong Kong) (defendant) over the sales and
purchase contract is RMB5,440,200. On 7 December 2021, Anhui Konka filed arbitration with the
Shenzhen Court of International Arbitration. On 14 October 2022, the compulsory enforcement
was filed. As of the date of issuance of this report, the case was executed in progress.
356
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
(14) The amount of the subject matter involved in the dispute between the Company's subsidiary
Anhui Konka (plaintiff) and Shanghai Likai Logistics Co., Ltd. Shenzhen Branch and Shanghai
Likai Logistics Co., Ltd. (defendants) over freight forwarding contracts in maritime and open sea
waters is RMB38 million. On 26 April 2021, Konka applied to Shanghai Maritime Court for
compulsory execution. On 7 June 2021, the court accepted the case. As of the date of issuance of
this report, the case was executed in progress.
(15) The amount of the subject matter involved in the dispute between the Company's subsidiary
Pengrun Technology (plaintiff) and Guangan Ou Qi Shi Electronic Technology Co., Ltd., Guan
Hongshao, Huaying Gaokede Electronic Technology Co., Ltd., Huaying Gaokelong Electronic
Technology Co., Ltd., Guizhou Jiaguida Technology Co., Ltd., Sichuan Hongrongyuan Real
Estate Co., Ltd., Du Xinyu, Linbolong and Wang Shisheng (defendants) over trust contract is
RMB167 million. The case has been applied for property preservation measures. As of the date of
issuance of this report, the case was under trial.
(16) The amount of the subject matter involved in the dispute between the Company (plaintiff) and
Yantai Kangyue Investment Co., Ltd. (defendant) over borrowing contract is RMB160 million.
The Company has applied to the Shenzhen Intermediate People's Court for property preservation.
As of the date of issuance of this report, the case was executed in progress.
(17) The amount of the subject matter involved in the dispute between the Company's subsidiary
Konka Huanjia (plaintiff) and Bank of Fuxin Co., Ltd., Huanjia Group, Dalian Jinjia Materials
Recycling Co., Ltd., Dalian Jin Kaixuan Renewable Resources Acquisition Chain Co., Ltd.,
Dalian Yingtai Paper Co., Ltd., Dalian Zhanhong Renewable Resources Recycling Co., Ltd. and
Wang Jinping (defendants) over the execution objection by an outsider is RMB240 million. As of
the date of issuance of this report, the case was under trial.
(18) The amount of the subject matter involved in the dispute between the Company's subsidiary
Jiaxin Technology Co., Limited (plaintiff) and Tripod Electronics Technology (HongKong)
Limited, Chen Wenhuan and Chen Baohong (defendants) over a sales and purchase contract of
international goods is RMB51 million. As of the date of issuance of this report, the case was under
trial.
(19) In the case of contract dispute between the Company (plaintiff), Zhu Xinming, Leng Sumin,
Gongqingcheng BRIC Investment Management Partnership (limited partnership) and
Gongqingcheng Xinrui Investment Management Partnership (Limited partnership) (defendant),
due to the failure of the other party to pay performance compensation as agreed, the Company
filed an arbitration with the Shenzhen International Arbitration Court in June 2023. The amount of
the subject matter involved in the lawsuit is RMB939,044,100. As of the date of issuance of this
report, the case was under trial.
(20) In the case of contract dispute between the Company's subsidiaries, Konka Lifeng (Plaintiff)
and Shenzhen Jun xing Communication Technology Co., Ltd., Gu Mei Electronics (Hong Kong)
Technology Co., Ltd., Shenzhen Hong xing Fengda Industrial Development Co., Ltd., Shenzhen
Jun xing Junye Electronics Co., Ltd., Zeng Jiankai, Zhang Zhenyu, Haiying Technology Group
(Hong Kong) Co., Ltd., Zhang Lixia, Anhui Baolin Industry Co., Ltd., Zeng Qingpeng, Zhong
Yuhua (Defendant), the subject matter of the lawsuit is RMB262,711,100. As of the date of issue
of this report, the case was under trial.
(21) Shenzhen Nianhua (plaintiff), a subsidiary of the Company, filed an arbitration with the
Shenzhen International Arbitration Court in March 2023 in a share repurchase dispute with Fang
Xianglong and Jiang Yan (defendant), due to the other party's failure to repurchase the share and
pay the repurchase price as agreed. The subject matter of the lawsuit is RMB151,605,500. As of
the date of issue of this report, the case was under implementation.
(22) The amount of the subject matter involved in the dispute between the Company's subsidiary
Konka Huanjia (plaintiff) and Xu Jianhua, Guangxi Beigang New Materials Co., Ltd. (defendant)

357
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
over a sales and purchase contract is RMB110,995,700. As of the date of issuance of this report,
the case was in progress.
(23) The amount of the subject matter involved in the dispute between the Company's subsidiary
Sichuan Konka (plaintiff) and Shenzhen Jun xing Communication Technology Co., Ltd., Shenzhen
Hong xing Fengda Industrial Development Co., Ltd., Shenzhen Jun xing Junye Electronics Co.,
Ltd., Liuyang Huichuan Heyuan Villa Co., Ltd., Zeng Jiankai, Zhong Yuhua (defendant) over a
sales and purchase contract is RMB51.72 million. As of the date of issuance of this report, the
case was under implementation.
(24) The Company (plaintiff) filed a lawsuit with the Nanshan District People's Court of Shenzhen
in May 2023 concerning the equity transfer contract dispute with Longrui Haoteng Technology
Development Co., Ltd., Beijing Beida Blue Bird Security System Engineering Technology Co.,
Ltd., and Beijing Jingrui Haoteng Technology Development Co., Ltd. (Defendant) due to the
failure of the other party to pay the balance of the equity transfer as agreed. The subject matter
involved amounted to RMB45.4076 million. As of the date of issue of this report, the case has
been won and the application for enforcement is in progress.
(25) The amount of the subject matter involved in the dispute between Shenzhen Oriental Venture
Capital Investment Co., Ltd. (plaintiff) and the Company (defendant) over a contract is RMB750
million. As of the date of issuance of this report, the case was under trial.
(26) The amount of the subject matter involved in the dispute between Sichuan Shuwu Guangrun
logistics Co., Ltd. (plaintiff) and the Company's subsidiary Dongguan Konka (defendants) over a
sales and purchase contract is RMB122,834,600. As of the date of issuance of this report, the case
was under trial.
X V. Subsequent Events after the Balance Sheet Date
1. Important non-adjusting matters
As Konka Huanjia, a subsidiary of the Company, was unable to repay its debts as they matured
and its assets were insufficient to repay all of its debts, the Company filed an application with the
People's Court of Ganjizi District, Dalian City, Liaoning Province (the "Dalian Ganjingzi District
Court" ) for the bankruptcy and liquidation of Konka Huanjia on 28 February 2024. On 29
February 2024, the Dalian Ganjingzi District Court decided in accordance with the law to accept
the Company's application. On 14 March 2024, the Dalian Ganjingzi District Court appointed
Shanghai SGLA (Dalian) Law Firm to act as the administrator (hereinafter referred to as the
"Administrator" ) of the bankruptcy and liquidation case of Kangjia Huanjia. On 15 March 2024,
the Administrator took over the relevant information and physical objects of Konka Huanjia. The
Company no longer exercises control over Konka Huanjia since 15 March 2024.
Except for the above matter, the Group had no significant non-adjusting matters to disclose as of
the date of this financial report.
2. Sales return
As of the date of this financial report, the Group had no material sales returns.
3. Notes to other subsequent events after the balance sheet date
Except for the above disclosure of matters after the balance sheet date, the Group did not have any
other significant events after the balance sheet date.
XVI. Other Key Matters
Due to the Company's continuous reduction plan resulting in the Company's loss of significant
influence on Chutian Dragon, on 31 March 2023, at the Ninth Meeting of the Tenth Session of the
Board of Directors of the Company, the Company considered and approved the Proposal on
Changing the Accounting Method for Chutian Dragon. Thus, on 31 March 2023, the Company

358
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
designated the remaining shares held in Chutian Dragon as financial assets at fair value through
profit or loss for the current period, and therefore converted them from long-term equity
investments accounted for under the equity method to held-for-trading financial assets. The
investment income resulting from the change in fair value at the date of conversion amounted to
RMB574 million. The cumulative gain or loss from fair value changes during the holding period
from the date of conversion to 31 December 2023 was RMB-52.05 million. As of 31 December
2023, the remaining number of shares held by the Company in Chutian Dragon was 27,897,662
shares, with a shareholding ratio of 6.055%. On the date of this report, the closing price of the
financial asset was RMB13.15per share.
Apart from the above matters, the Group had no other significant transactions and events that had
an impact on investors' decision-making that needed to be disclosed.
XVII. Notes to the Main Items of the Financial Statements of the Parent
Company
1. Accounts receivable
( 1 ) Accounts receivable listed by aging portfolio

Book balance at the beginning of the
Aging Book balance at the end of the year
year

Within one year (inclusive) 1,206,382,965.89 4,177,587,681.73

One to two years 1,471,518,725.52 125,417,030.16

Two to three years 116,480,162.93 75,011,848.13

Three to four years 58,805,217.49 130,238,580.35

Four to five years 122,821,401.69 637,992,232.94

Over five years 806,589,292.93 173,615,565.37

Total 3,782,597,766.45 5,319,862,938.68

( 2 ) Accounts receivable listed by withdrawal methods for bad debts

Closing balance

Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
Accounts receivable
of expected credit
752,763,517.97 19.90 708,873,222.27 94.17 43,890,295.70
losses withdrawn
individually

Accounts receivable
of expected credit
losses withdrawn by
portfolio

Of which: Aging
355,972,586.88 9.41 166,216,118.67 46.69 189,756,468.21
portfolio

359
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Closing balance

Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
Grouping of related
2,673,861,661.60 70.69 2,673,861,661.60
parties

Subtotal of portfolio 3,029,834,248.48 80.10 166,216,118.67 5.49 2,863,618,129.81

Total 3,782,597,766.45 100.00 875,089,340.94 23.13 2,907,508,425.51


(Continued)

Opening balance

Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
Accounts receivable
of expected credit
723,559,609.63 13.60 652,094,110.07 90.12 71,465,499.56
losses withdrawn
individually

Accounts receivable
of expected credit
losses withdrawn by
portfolio

Of which: Aging
410,174,776.68 7.71 193,889,834.11 47.27 216,284,942.57
portfolio

Grouping of related
4,186,128,552.37 78.69 4,186,128,552.37
parties

Subtotal of portfolio 4,596,303,329.05 86.40 193,889,834.11 4.22 4,402,413,494.94

Total 5,319,862,938.68 100.00 845,983,944.18 15.90 4,473,878,994.50

1 ) Provision set aside for bad debts of accounts receivable by single item

Closing balance
Name Provision
Provision for bad Reasons for the
Book balance percentage
debts provision
(%)

Expected to be
Shanghai Huaxin International
299,136,676.70 293,153,943.17 98.00 difficult to
Group Co., Ltd.
recover

Expected to be
Hongtu Sanbao High-tech
200,000,000.00 180,000,000.00 90.00 difficult to
Technology Co., Ltd.
recover

360
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Closing balance
Name Provision
Provision for bad Reasons for the
Book balance percentage
debts provision
(%)

Expected to be
Zhongfu Tiangong Construction
71,389,096.65 53,541,822.49 75.00 difficult to
Group Co., Ltd.
recover

CCCC First Harbor Engineering Not expected to
55,438,105.00 55,438,105.00 100.00
Company Ltd. be recoverable

China Energy Power Fuel Co., Not expected to
50,000,000.00 50,000,000.00 100.00
Ltd. be recoverable

Shenzhen Kanghong xing Not expected to
36,900,685.94 36,900,685.94 100.00
Intelligent Technology Co., Ltd. be recoverable

Expected to be
Others 39,898,953.68 39,838,665.67 99.85 difficult to
recover

Total 752,763,517.97 708,873,222.27 94.17

2 ) Provision for bad debts for accounts receivable made as per portfolio
① In the portfolio, accounts receivable of provision for expected credit loss made by aging

Closing balance
Aging
Provision for bad Provision
Book balance
debts percentage (%)

Within one year 143,499,372.75 2,927,387.22 2.04


One to two years 10,150,867.80 1,017,116.96 10.02


Two to three years 51,446,340.40 11,673,174.64 22.69


Three to four years 790,336.20 512,770.12 64.88

Four to five years 884,722.73 884,722.73 100.00

Over five years 149,200,947.00 149,200,947.00 100.00

Total 355,972,586.88 166,216,118.67 46.69

② In the portfolio, accounts receivable of provision for expected credit loss made by other
methods

Closing balance
Aging
Provision for Provision
Book balance
bad debts percentage (%)


361
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Closing balance
Aging
Provision for Provision
Book balance
bad debts percentage (%)

Grouping of related parties 2,673,861,661.60

Total 2,673,861,661.60

( 3 ) Provision for bad debts of accounts receivable set aside, recovered or reclassified in
the current year

Change in the current year
Category Opening balance
Recovery or
Provision
reclassification

Provision for bad debts of
845,983,944.18 32,999,328.16 3,893,931.40
accounts receivable

Total 845,983,944.18 32,999,328.16 3,893,931.40


(Continued)
Change in the current year
Category Closing balance
Charge-off or write-
Others
off

Provision for bad debts of
875,089,340.94
accounts receivable

Total 875,089,340.94

There were no provisions for bad debts with significant amounts to be recovered or classified in
the Reporting Period.
( 4 ) Accounts receivable actually written off in the current year
There were no accounts receivable actually written off in the current year.
( 5 ) Top five accounts receivable and contract assets in the closing balance categorised by
debtors
The total amount of accounts receivable with top five closing balance categorised by debtors in the
current year was RMB3,025,342,043.16, accounting for 79.98% of the total closing balance of
accounts receivable. The total closing balance of provision for bad debts correspondingly set aside
was RMB473,153,943.17.
2. Other accounts receivable

Item Closing balance Opening balance

Interest receivable 6,325,400.49 3,878,580.64


Dividends receivable 395,209,709.13 393,563,347.61

Other receivables 7,560,988,861.81 9,944,884,426.80

362
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Item Closing balance Opening balance

Total 7,962,523,971.43 10,342,326,355.05

2.1 Interest receivable

Item Closing balance Opening balance

Interest on term deposits 6,325,400.49 3,878,580.64

Total 6,325,400.49 3,878,580.64

2.2 Dividends receivable

Item Closing balance Opening balance

Hong Kong Konka 115,209,709.13 113,563,347.61

Suining Konka Industrial Park 280,000,000.00 280,000,000.00

Total 395,209,709.13 393,563,347.61

2.3 Other receivables
( 1 ) Classified by account nature

Book balance at the end of the Book balance at the beginning
Nature of fund
year of the year

Intercourse funds among subsidiaries 9,069,786,800.21 11,299,542,985.57

Energy-saving subsidies receivable 141,549,150.00 141,549,150.00

Intercourse funds with other related
235,267,733.09 50,667,315.53
parties

Deposit, security deposit, deposit 12,721,943.88 17,354,107.03

Others 99,060,310.98 375,797,998.76

Total 9,558,385,938.16 11,884,911,556.89

( 2 ) Other receivables listed by aging

Book balance at the end of the Book balance at the beginning
Aging
year of the year

Within one year (inclusive) 5,210,348,063.16 8,060,254,524.30

One to two years 2,145,922,239.93 1,782,503,511.04

Two to three years 198,105,811.44 470,794,157.38

Three to four years 439,082,181.54 1,006,460,259.82


363
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Book balance at the end of the Book balance at the beginning
Aging
year of the year

Four to five years 1,004,762,554.22 389,224,526.20

Over five years 560,165,087.87 175,674,578.15

Total 9,558,385,938.16 11,884,911,556.89


( 3 ) Classified presentation of other receivables by provisioning methods of bad debts

Closing balance

Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)

Other
receivables of
expected credit 2,110,298,248.95 22.08 1,958,251,651.39 92.80 152,046,597.56
losses set aside
by single item

Other
receivables of
provision for bad
debts set aside
by credit risk
characteristic
portfolio:

Aging portfolio 84,338,231.39 0.88 32,163,233.75 38.14 52,174,997.64

Low-risk
16,543,239.09 0.17 6,982,191.21 42.21 9,561,047.88
portfolio

Grouping of
7,347,206,218.73 76.87 7,347,206,218.73
related parties

Subtotal of
7,448,087,689.21 77.92 39,145,424.96 0.53 7,408,942,264.25
portfolio

Total 9,558,385,938.16 100.00 1,997,397,076.35 20.90 7,560,988,861.81


(Continued)

Opening balance

Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)

Other 1,901,377,741.07 16.00 1,882,393,905.79 99.00 18,983,835.28
receivables of
364
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Opening balance

Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
expected credit
losses set aside
by single item

Other
receivables of
provision for bad
debts set aside
by credit risk
characteristic
portfolio:

Aging portfolio 94,419,620.35 0.79 54,385,072.09 57.60 40,034,548.26

Low-risk
16,755,275.76 0.14 3,248,152.21 19.39 13,507,123.55
portfolio

Grouping of
9,872,358,919.71 83.07 9,872,358,919.71
related parties

Subtotal of
9,983,533,815.82 84.00 57,633,224.30 0.58 9,925,900,591.52
portfolio

Total 11,884,911,556.89 100.00 1,940,027,130.09 16.32 9,944,884,426.80

1 ) Provision set aside for bad debts of other receivables by the general expected credit
loss model

Phase I Phase II Phase III

Expected credit
loss during the Expected credit
Provision for bad debts Expected Total
whole loss during the
credit loss for
outstanding whole outstanding
the next 12
maturity (without maturity (with
months
credit credit impairment)
impairment)

Balance as of 1 January
357,726.75 57,275,497.55 1,882,393,905.79 1,940,027,130.09
2023

Balance as of 1 January
-73,128.86 73,128.86
2023 in the current year

-- Transferred to Phase II -73,128.86 73,128.86

-- Transferred to Phase III

-- Reclassified under Phase
II


365
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

-- Reclassified under Phase
I

Provision in the current
557,099.12 75,857,745.60 76,414,844.72
year

Recovery in the current
19,044,898.46 19,044,898.46
year

Charge-off in the current
year

Write-off in the current
year

Other changes

Balance as at 31 December
841,697.01 38,303,727.95 1,958,251,651.39 1,997,397,076.35
2023

Note: The first stage is that credit risk has not increased significantly since initial recognition. For
other receivables with an aging portfolio and a low-risk portfolio within one year, the loss
provision is measured according to the expected credit losses in the next 12 months.
The second stage is that credit risk has increased significantly since initial recognition but credit
impairment has not yet occurred. For other receivables with an aging portfolio and a low-risk
portfolio that exceed one year, the loss provision is measured based on the expected credit losses
for the entire duration.
The third stage is the credit impairment after initial confirmation. For other receivables of credit
impairment that have occurred, the loss provision is measured according to the credit losses that
have occurred throughout the duration.
( 4 ) Provision for bad debts of other receivables set aside, recovered or reclassified in the
current year
The amount of provision for bad debts in the current year was RMB57,369,946.26, and other
receivables actually written off were RMB0.00.
( 5 ) Other receivables actually written off in the current year
There were no other receivables actually written off in the current year.
( 6 ) Other receivables with top five year-end balances categorised by debtors
The total amount of other receivables with top five closing balance categorised by debtors in the
current year was RMB6,550,250,572.65, accounting for 68.53% of the total closing balance of
other receivables. The total closing balance of provision for bad debts correspondingly set aside
was RMB1,744,736,434.49.




366
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
3. Long-term equity investment
Closing balance Opening balance
Item
Book balance Provision for Carrying value Book balance Provision for Carrying value
impairment impairment

Investment in
7,156,825,933.98 781,480,000.00 6,375,345,933.98 7,277,554,047.75 781,480,000.00 6,496,074,047.75
subsidiaries

Investment in associated
enterprises and joint 2,279,596,484.20 301,754,900.04 1,977,841,584.16 2,824,333,468.08 219,718,378.41 2,604,615,089.67
ventures

Total 9,436,422,418.18 1,083,234,900.04 8,353,187,518.14 10,101,887,515.83 1,001,198,378.41 9,100,689,137.42

( 1 ) Investment in subsidiaries

Impairment provision Closing balance of the
Increase in the Decrease in the current
Investee Opening balance Closing balance set aside in the current provision for
current year year
year impairment

Konka Ventures 2,550,000.00 2,550,000.00

Anhui Konka 122,780,937.98 122,780,937.98

Konka Electronic
300,000,000.00 300,000,000.00
Materials

Konka Unifortune 15,300,000.00 15,300,000.00

Wankaida 10,000,000.00 10,000,000.00

Dongguan Konka 274,783,988.91 274,783,988.91



367
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Impairment provision Closing balance of the
Increase in the Decrease in the current
Investee Opening balance Closing balance set aside in the current provision for
current year year
year impairment

Konka Europe 3,637,470.00 3,637,470.00

Telecommunication
360,000,000.00 360,000,000.00
Technology

Mobile Interconnection 100,000,000.00 100,000,000.00

Anhui Tong giường 779,702,612.22 779,702,612.22

Kangjiatong 30,749,800.00 30,749,800.00

Pengrun Technology 25,500,000.00 25,500,000.00

Beijing Konka Electronic 200,000,000.00 200,000,000.00

Konka Circuit 297,650,000.00 139,400,000.00 437,050,000.00

Hong Kong Konka 781,828.61 781,828.61

Konka Investment 500,000,000.00 500,000,000.00

Electronics Technology 1,000,000,000.00 1,000,000,000.00

Konka Huanjia 91,800,000.00

Shanghai Konka 40,000,000.00 40,000,000.00

Jiangxi Konka 689,680,000.00

Shenzhen Nianhua 30,000,000.00 30,000,000.00

368
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Impairment provision Closing balance of the
Increase in the Decrease in the current
Investee Opening balance Closing balance set aside in the current provision for
current year year
year impairment

Shenzhen KONSEMI 100,000,000.00 100,000,000.00

Konka Eco-Development 50,000.00 50,000.00

Suining Konka Industrial
200,000,000.00 200,000,000.00
Park

Konka Ronghe 5,100,000.00 5,100,000.00

Suining Electronic
200,000,000.00 200,000,000.00
Technological Innovation

Shenzhen Chuangzhi
10,000,000.00 10,000,000.00
Electrical Appliances

Kanghong (Yantai)
1,025,100.00 1,025,100.00
Environmental Protection

Chongqing Kang xing rui 25,500,000.00 25,500,000.00

Chongqing Konka
Optoelectronic 933,333,333.33 933,333,333.33
Technology

Kowin Memory
192,520,000.00 192,520,000.00
(Shenzhen)

Ningbo Kanghr Electrical
90,000,000.00 90,000,000.00
Appliance



369
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Impairment provision Closing balance of the
Increase in the Decrease in the current
Investee Opening balance Closing balance set aside in the current provision for
current year year
year impairment

Konka Intelligent
510.00 510.00
Manufacturing

Suining Jiarun Property 10,000,000.00 10,000,000.00

Yibin Kangrun 67,000,000.00 67,000,000.00

Hainan Konka Material
9,205,452.93 9,205,452.93
Technology

Konka Cross-border
50,000,000.00 50,000,000.00
(Hebei)

Konka Huazhong 30,000,000.00 30,000,000.00

Guizhou Kanggui
70,000,000.00 42,000,000.00 28,000,000.00
Material Technology

Nantong Kanghai 15,300,000.00 15,300,000.00

Jiangxi Konka High-tech
50,000,000.00 50,000,000.00
Park

Shangrao Konka
Electronic Technology 30,000,000.00 30,000,000.00
Innovation

Sichuan Hongxinchen 20,000,000.00 20,000,000.00

Xi'an Kanghong 12,000,000.00 12,000,000.00


370
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Impairment provision Closing balance of the
Increase in the Decrease in the current
Investee Opening balance Closing balance set aside in the current provision for
current year year
year impairment
Technology Industry

Xi'an Konka Intelligent
50,000,000.00 50,000,000.00
Technology

Tianjin Konka 171,603,013.77 171,603,013.77

Songyang Konka
30,000,000.00 30,000,000.00
Intelligent

Konka North China 30,000,000.00 30,000,000.00

Total 6,496,074,047.75 139,400,000.00 260,128,113.77 6,375,345,933.98 781,480,000.00

( 2 ) Investment in associated enterprises and joint ventures

Changes in the current year
Balance as at the end of
Investee
last year Increase in the Decrease in the Profit or loss of investment Changes in other
investment investment recognised by the equity method comprehensive income

Anhui Kaikai Shijie E-commerce Co., Ltd. 17,400,738.44 93,109.02

Kunshan Kangsheng Investment Development Co.,
219,065,984.22 -52,251,209.71
Ltd.

Chutian Dragon Co., Ltd. 523,726,463.18 109,831,325.31

Shanxi Silk Road Cloud Intelligent Tech Co., Ltd. 13,333,698.78 -8,144,973.65 -1,136.65



371
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Changes in the current year
Balance as at the end of
Investee
last year Increase in the Decrease in the Profit or loss of investment Changes in other
investment investment recognised by the equity method comprehensive income

Shenzhen Kanghong xing Intelligent Technology
Co., Ltd.

Shenzhen Zhongkang Beidou Technology Co., Ltd.
(formerly named: Shenzhen Zhongbing Konka
Technology Co., Ltd.)

Shenzhen Kangjia Jiapin Intelligent Electrical
5,371,364.87 1,719,225.60
Apparatus Technology Co., Ltd.

Shenzhen Yaode Technology Co., Ltd.

Wuhan Tianyuan Environmental Protection Co., Ltd. 352,295,640.91 35,840,487.27

Shenzhen KONKA E-display Co., Ltd. 12,567,702.52 2,778,976.23 8,655.99

Chuzhou Konka Technology Industry Development
5,899,324.39 -5,899,324.39
Co., Ltd.

Chuzhou Kangjin Health Industrial Development
172,987,384.01 -36,821,079.39
Co., Ltd.

Nantong Kang gian Technology Industrial Park
5,625,680.96
Operations and Management Co., Ltd.

Shenzhen Kangyue Enterprise Co., Ltd. 2,999,091.61 -2,769,080.00

Dongguan Guankang Yuhong Investment Co., Ltd.



372
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Changes in the current year
Balance as at the end of
Investee
last year Increase in the Decrease in the Profit or loss of investment Changes in other
investment investment recognised by the equity method comprehensive income

Chongqing Yuanlv Benpao Real Estate Co., Ltd.

Chuzhou Kangxin Health Industry Development
10,835,065.75 -2,558,013.46
Co., Ltd.

E3info (Hainan) Technology Co., Ltd. 8,574,609.73

Shenzhen Kangpeng Digital Technology Co., Ltd. 3,411,153.10 -1,641,132.09

Yantai Kangyun Industrial Development Co., Ltd. 4,135,456.96 -4,135,456.96

Shandong Econ Technology Co., Ltd. 1,044,184,489.99 -29,643,085.83

Dongguan Kangjia New Materials Technology Co.,
3,950,928.27 -93,956.95
Ltd.

Chongqing E2info Technology Co., Ltd. 163,744,169.42 28,155,362.85

Sichuan Chengrui Real Estate Co., Ltd. 7,851,192.26 -7,851,192.26

Wuhan Kangtang Information Technology Co., Ltd. 26,654,950.30 -897,727.70

Sichuan Hongxinchen Real Estate Development Co.,
6,161,929.55 -3,702,243.10
Ltd.

Total 2,604,615,089.67 6,161,929.55 109,831,325.31 -87,914,423.54 100,628.36


(Continued)

373
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Changes in the current year Closing balance
Ending balance of
Investee Cash dividends or Provision set
Changes in other depreciation reserve
profits declared to aside for Others (Carrying value)
equities
be distributed impairment

Anhui Kaikai Shijie E-commerce Co., Ltd. 17,493,847.46

Kunshan Kangsheng Investment Development Co.,
53,900,000.00 112,914,774.51
Ltd.

Chutian Dragon Co., Ltd. -413,895,137.87

Shanxi Silk Road Cloud Intelligent Tech Co., Ltd. 5,187,588.48

Shenzhen Kanghong xing Intelligent Technology Co.,
5,158,909.06
Ltd.

Shenzhen Zhongkang Beidou Technology Co., Ltd.
(formerly named: Shenzhen Zhongbing Konka
Technology Co., Ltd.)

Shenzhen Kangjia Jiapin Intelligent Electrical
7,090,590.47
Apparatus Technology Co., Ltd.

Shenzhen Yaode Technology Co., Ltd. 214,559,469.35

Wuhan Tianyuan Environmental Protection Co., Ltd. 127,671,222.93 3,078,000.00 512,729,351.11

Shenzhen KONKA E-display Co., Ltd. 15,355,334.74

Chuzhou Konka Technology Industry Development
Co., Ltd.



374
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Changes in the current year Closing balance
Ending balance of
Investee Cash dividends or Provision set
Changes in other depreciation reserve
profits declared to aside for Others (Carrying value)
equities
be distributed impairment

Chuzhou Kangjin Health Industrial Development Co.,
136,166,304.62
Ltd.

Nantong Kang gian Technology Industrial Park
5,625,680.96
Operations and Management Co., Ltd.

Shenzhen Kangyue Enterprise Co., Ltd. 230,011.61 230,011.61

Dongguan Guankang Yuhong Investment Co., Ltd.

Chongqing Yuanlv Benpao Real Estate Co., Ltd.

Chuzhou Kangxin Health Industry Development Co.,
8,277,052.29
Ltd.

E3info (Hainan) Technology Co., Ltd. 8,574,609.73

Shenzhen Kangpeng Digital Technology Co., Ltd. 1,770,021.01

Yantai Kangyun Industrial Development Co., Ltd.

Shandong Econ Technology Co., Ltd. -4,074,486.01 81,806,510.02 928,660,408.13 81,806,510.02

Dongguan Kangjia New Materials Technology Co.,
3,856,971.32
Ltd..

Chongqing E2info Technology Co., Ltd. -5,977,391.99 185,922,140.28



375
Notes to financial statements of Konka Group Co., Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)

Changes in the current year Closing balance
Ending balance of
Investee Cash dividends or Provision set
Changes in other depreciation reserve
profits declared to aside for Others (Carrying value)
equities
be distributed impairment

Sichuan Chengrui Real Estate Co., Ltd.

Wuhan Kangtang Information Technology Co., Ltd. 25,757,222.60

Sichuan Hongxinchen Real Estate Development Co.,
2,459,686.45
Ltd.

Total 117,619,344.93 56,978,000.00 82,036,521.63 -413,895,137.87 1,977,841,584.16 301,754,900.04

Note 1: The above investees are all associated enterprises.
Note 2: "Other" represents the conversion of long-term equity investments accounted for under the equity method to financial assets.




376
Konka Group Co., Ltd. Annual Report 2023


4. Operating revenue and cost of sales

( 1 ) Operating income and operating costs

Amount incurred in the current year Amount incurred last year
Item
Income Cost Income Cost

Principal
1,677,401,625.28 1,809,632,592.29 1,624,421,165.68 1,872,104,013.01
business

Other business 170,593,467.51 71,483,083.62 187,362,353.34 90,386,351.96

Total 1,847,995,092.79 1,881,115,675.91 1,811,783,519.02 1,962,490,364.97


( 2 ) Information in relation to the trade price apportioned to the residual contract performance
obligation

The amount of revenue corresponding to performance obligations that have been contracted but have not yet
been fulfilled or completed at the end of the year is RMB15,506,737.84, of which RMB15,506,737.84 is
expected to be recognised as revenue in 2024.

5. Investment income

Amount incurred in the
Item Amount incurred last year
current year

Long-term equity investment income calculated by the cost method 125,381,404.76

Returns on long-term equity investments calculated by the equity
-87,914,423.54 138,908,805.41
method

Return on investment arising from the disposal of long-term equity
197,370,626.59 275,394,866.81
investments

Conversion of long-term equity investments accounted for by the
574,780,174.75
equity method to financial assets

Investment income from disposal of financial assets at fair value
-55,975,275.41
through profit or loss

Interest income from debt investments during the holding period 6,532,591.02 4,640,244.26

Return on investment in the financial assets held for trading during
9,383,976.00
the holding period

Others 500,000.00 -5,378,929.04

Total 644,677,669.41 538,946,392.20




XVIII. Supplementary Materials to the Financial Statements
377
Konka Group Co., Ltd. Annual Report 2023


1. Items and amounts of non-recurring profit or loss in the current year

Item Amount of current year Notes


Profit or losses on disposal of non-current assets (including the portion offset for provisions
198,866,019.16
for asset impairment)


Government subsidies included in profit and loss of the current period (except for
government subsidies that are closely related to the Company's normal business operation,
264,798,178.16
comply with national policies and are enjoyed in accordance with defined criteria, and have
a continuing impact on the Company's profit or loss)


Profit or losses from changes in fair value of financial assets and liabilities held by non-
financial corporations and profit or losses from the disposal of financial assets and
-88,236,451.43
liabilities, except for effective hedging operations related to the Company's normal business
operations


Dispossession surcharge to non-financial institutions included in the current profit and loss


Gain/Loss on entrusting others with investments or asset management


Gain/loss on entrustment loans 118,808,006.95


Losses on assets resulted from force majeure factors such as natural disasters


Reclassification of impairment loss allowances of receivables separately tested for
3,055,800.22
impairment


Profits arising from business combination when the combined cost is less than the
recognised fair value of net assets of the merged company


Current net profit or loss of subsidiaries acquired in business combination under the same
control from period-beginning to combination date


Profit/Loss on non-monetary asset swap


Profit/Loss on debt restructuring


One-time costs incurred by an enterprise as a result of the discontinuation of a related
operating activity, such as expenses for relocating employees


One-time impact on profit or loss for the current period due to adjustments in tax,
accounting and other laws and regulations


One-time recognition of share-based payment expense due to cancellation and modification
of equity incentive plans


Cash-settled share-based payments, profit or losses arising from changes in the fair value of
employee compensation payable after the date of exercisability


Gain/loss on change in fair value of investment property of which the follow-up
measurement is carried out adopting fair value method


Income from transactions at significantly unfair prices


Profit and losses arising from contingencies unrelated to the normal operation of the
Company's business


378
Konka Group Co., Ltd. Annual Report 2023



Item Amount of current year Notes


Custodian fees earned from entrusted operation


Non-operating income and expenses other than those listed above -64,433,346.64


Other profit and loss items in line with the definition of non-recurring gains and losses 571,315,980.43


Subtotal 1,004,174,186.85


Less: Income tax effect 239,431,992.39


Effect of minority shareholders' equities (after tax) 14,087,171.21


Total 750,655,023.25 -


(1)Specific information on other profit and loss items that meet the definition of non recurring gains and losses:

Item Amount Reasons

The main reason is that the company disposed of a portion
of its equity in a subsidiary holding company, which no
longer has a significant impact, resulting in a change in the
Chutian Dragon Co., Ltd. 574,780,174.75
accounting method for this reporting period, from long-term
equity investments (equity method) to trading financial
assets, resulting in non recurring gains and losses.


(2) The Company recognises items that are not listed in the Explanatory Announcement No. 1 on Information
Disclosure by Companies Offering Securities to the Public--Non-recurring Profit or Loss (Revised in 2023) as
non-recurring profit or loss items, and the those involving significant mounts as well as the non-recurring profit
or loss items listed as recurring profit or loss items

Item Amount Reasons

Government subsidies which are closely related to the
normal business of the company and which are in
Software tax refund 5,819,853.78
accordance with national policies and certain standard quota
or quantitative amount


2. Return on net assets and earnings per share

EPS (RMB/share)
Weighted average
Profit for the Reporting Period Weighted average return on net
Basic earnings per Diluted earnings
assets (%)
share per share

Net profit attributable to ordinary
shareholders of the Company as the -32.58 -0.8986 -0.8986
Parent

Net profit attributable to ordinary -43.89 -1.2103 -1.2103
shareholders of the Company as the
379
Konka Group Co., Ltd. Annual Report 2023


Parent before exceptional gains and
losses




The Board of Directors

Konka Group Co., Ltd.

1 April 2024




380