1、Konka Group Co.,Ltd.Interim Report 2019(Summary)1 Stock Code:000016,200016 Stock Name:Konka Group-A,Konka Group-B Announcement No.2019-75 Bond code:114418,114423 Bond name:19 Konka 01,19 Konka 02 114488,114489 19 Konka 03,19 Konka 04 114523,114524 19 Konka 05,19 Konka 06 KONKA GROUP CO.,LTD.INTERIM
2、REPORT 2019(SUMMARY)Part I Important Notes This Abstract is based on the full text of the Semi-Annual Report.In order for a full understanding of the operating results,financial condition and future development planning of the Company,investors are kindly reminded to read the full text carefully on
3、the media designated by the China Securities Objections raised by any of the directors,supervisors or senior management against any contents in this Report or its summary:Name Office title Objection and explanation of why Statement of objection:Except for the following directors,all the other direct
4、ors attended in person the Board meeting for the review of this Report and its summary.Name Office title Reason for not attending meeting in person Proxy entrusted to attend the meeting Board-approved interim cash and/or stock dividend plan for ordinary shareholders:The Company has no interim divide
5、nd plan,either in the form of cash or stock.Board-approved interim cash and/or stock dividend plan for preferred shareholders: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 version
6、s shall prevail.Konka Group Co.,Ltd.Interim Report 2019(Summary)2 Part II Key Corporate Information 1.Stock Profile Stock name Konka Group-A,Konka Group-B Stock code 000016,200016 Stock exchange for stock listing Shenzhen Stock Exchange Changed stock name(if any)N/A Contact information Board Secreta
7、ry Securities Representative Name Wu Yongjun Miao Leiqiang Office address Board Secretariat,24/F,Konka R&D Center,28 Keji South Twelfth Road,Science and Technology Park,Yuehai Street,Nanshan District,Shenzhen,Guangdong Province,China Board Secretariat,24/F,Konka R&D Center,28 Keji South Twelfth Road
8、,Science and Technology Park,Yuehai Street,Nanshan District,Shenzhen,Guangdong Province,China Tel.0755-26609138 0755-26609138 E-mail address 2.Key Financial Information Indicate by tick mark whether there is any retrospectively restated datum in the table below.H1 2019 H1 2018 Change(%)Operating rev
9、enue(RMB)26,036,442,813.84 17,625,414,769.82 47.72%Net profit attributable to the listed compan(RMB)352,767,020.73 341,793,039.03 3.21%Net profit attributable to the listed before exceptional gains and losses(RMB)-622,911,633.57-300,870,612.80-107.04%Net cash generated from/used in operating activit
10、ies(RMB)-2,042,956,171.77-1,838,158,705.86-11.14%Basic earnings per share(RMB/share)0.1465 0.1419 3.24%Diluted earnings per share(RMB/share)0.1465 0.1419 3.24%Weighted average return on equity(%)4.25%4.19%0.06%30 June 2019 31 December 2018 Change(%)Total assets(RMB)37,939,411,460.71 32,985,061,889.0
11、3 15.02%Equity attributable to the listed(RMB)8,239,642,204.00 8,104,736,790.53 1.66%3.Shareholders and Their Holdings as at 30 June 2019 Unit:share Number of ordinary shareholders 92,812 Number of preferred shareholders with resumed voting rights(if any)0 Top 10 shareholders Name of shareholder Nat
12、ure of shareholder Shareholding percentage Number of shares Restricted shares Shares in pledge or frozen Status Shares OVERSEAS CHINESE TOWN ENTERPRISES CO.,LTD State-owned legal person 21.75%523,746,932 0 CITIC SECURITIES Foreign legal 7.56%182,100,202 0 Konka Group Co.,Ltd.Interim Report 2019(Summ
13、ary)3 BROKERAGE(HONG KONG)CO.,LTD.person HOL Y TIME GROUP LIMITED Foreign legal person 2.33%56,139,100 0 GUOYUAN SECURITIES BROKER(HK)CO.,LTD.Foreign legal person 2.25%54,203,779 0 GAOLING FUND,L.P.Foreign legal person 2.19%52,801,250 0 ZHANG XIAOYU Domestic natural person 1.13%27,283,178 0 HONG KON
14、G SECURITIES CLEARING COMPANY LTD.Foreign legal person 1.13%27,256,732 0 CHINA MERCHANTS SECURITIES(HK)LIMITED State-owned legal person 0.95%22,879,324 0 NAM NGAI Foreign natural person 0.93%22,453,440 0 NA TIONAL SOCIAL SECURITY FUND-PORTFOLIO 118 Other 0.88%21,099,537 0 Related or acting-in-concer
15、t parties among shareholders above Jialong Investment Limited,a wholly-180,001,110 and 18,360,000 ordinary shares in the Company respectively through CITIC Securities Brokerage(Hong Kong)Co.,Ltd.and China Merchants Securities(HK)Limited.Jialong Investment Limited and Overseas Chinese Town Enterprise
16、s Co.are parties acting in concert.Other than that,it is unknown whether the other shareholders are related parties or acting-in-concert parties or not.Shareholders conducting margin trading Zhang Xiaoyu holds 27,283,178 A-shares in the Company through her account of collateral securities for margin
17、 trading in Huaxi Securities Co.,Ltd.4.Change of Controlling Shareholder or Actual Controller in Reporting Period Change of the controlling shareholder in the Reporting Period:The controlling shareholder remained the same in the Reporting Period.Change of the actual controller in the Reporting Perio
18、d:The actual controller remained the same in the Reporting Period.5.Number of Preferred Shareholders and Shareholdings of Top 10 of Them No preferred shareholders in the Reporting Period.6.Corporate bonds Does the Company have any corporate bonds publicly offered on the stock exchange,which were und
19、ue before the date of this Rep Such information is disclosed as below:Konka Group Co.,Ltd.Interim Report 2019(Summary)4(1)Basic Information of Corporate Bonds Name Abbr.Code Due date Bonds balance 0)Coupon rate Privately placed corporate bonds in 2019 of Konka Group Co.,Ltd(Tranche I)(Variety I)19 K
20、onka 01 114418 14 January 2022 100,000 5.00%Privately placed corporate bonds in 2019 of Konka Group Co.,Ltd(Tranche I)(Variety II)19 Konka 02 114423 14 January 2022 150,000 5.00%Privately placed corporate bonds in 2019 of Konka Group Co.,Ltd(Tranche II)(Variety I)19 Konka 03 114488 3 June 2022 50,00
21、0 4.50%Privately placed corporate bonds in 2019 of Konka Group Co.,Ltd(Tranche II)(V ariety II)19 Konka 04 114489 3 June 2022 50,000 4.70%Privately placed corporate bonds in 2019 of Konka Group Co.,Ltd(Tranche III)(Variety I)19 Konka 05 114523 22 July 2022 80,000 4.53%Privately placed corporate bond
22、s in 2019 of Konka Group Co.,Ltd(Tranche III)(Variety II)19 Konka 06 114524 22 July 2022 70,000 4.70%(2)Financial Indicators as at 30 June 2019 Item 30 June 2019 31 December 2018 Change(%)Debt/asset ratio 74.08%71.35%2.73%Item H1 2019 H1 2018 Change(%)EBITDA-to-interest coverage ratio 2.75 2.39 15.0
23、6%Part III Operating Performance Discussion and Analysis(I)Business Overview of Reporting Period Is the Company subject to any industry-specific disclosure requirements?No.The Company carried on with its long-term development strategy of during the Reporting Period,made progress in the following asp
24、ects:1.The mixed-ownership reform progressed further,bringing more vitality to the subordinates.During the Reporting Period,in order to further promote the mixed-ownership reform on the subordinates and refine the asset allocation of the Company,Shenzhen Konka E-display Co.,Ltd.introduced Shenzhen M
25、ACC Investment Holding Co.,Ltd.,which owns upstream resources,as a shareholder.In addition,the multimedia business of the Company kept enhancing its competitiveness by taking reform measures such as promoting the mixed-ownership reform on the sales subsidiaries and building an independent domestic s
26、ervice system.2.Efforts were stepped up in technological R&D to enhance independent innovation.During the.R&D investment increased by 14.74%year-on-year in the first half of this year.and built a three-level lab system(a comprehensive lab at the Headquarters level,key labs at the Konka Group Co.,Ltd
27、.Interim Report 2019(Summary)5 level of cooperation between the Headquarters and the business departments,and improvement labs at the business department level).More than a dozen of high-end personnel from around the world were introduced to the system,and an intent was reached with research institu
28、tes such as the Shenzhen Institutes of Advanced Technology of the Chinese Academy of Sciences and the Harbin Institute of Technology,Shenzhen to jointly produce post-doctoral talent.During the period,a number of programmes featuring independent innovation by the Company received commendations,includ
29、ing the National Second Prize for Progress in Science and Technology for the programme of the Digital TV Broadcast System and the Domestication of Core Chips,the Third Prize for Progress in Science and Technology for the programme of the Research and Industrialization of Key Quality Management Techn
30、ologies for Food in Refrigerators by the China Light Industry Council,as well as the inclusion of the programme of the 8K Equipment End-to-End Signal Connection Key Technology and R&D of Terminal Display Products in the Key R&D Programmes of Guangdong Province.3.The Company continued to revitalize t
31、he Konka brand.During the Reporting Period,the Company investment increased by 20.08%year-on-year in the first half of this year.The Company tried to make its brand more attractive to young and international consumers by means of deep cooperation with widely-recognized media and platforms,as well as
32、 with Lu Han,a top star.4.The core businesses saw further improvement.As a result,it recorded operating revenue of RMB26.036 billion for the period,up 47.72%year-on-year.During the Reporting Period,the environmental business reported close to RMB4.863 billion in operating revenue with steady progres
33、s made in water treatment,recycling of renewable resources and new materials;the white goods business posted a 50%year-on-year growth in operating revenue thanks to measures such as the integration of online and offline marketing and product upgrade in addition to the integration of the multimedia b
34、usiness proactively refined its product mix,promoted mechanism reform and saw a markedly larger size of both the e-commerce and overseas operations,where a great deal of effort was put;.5.Technology park development moved on.According to the strategy of nd transformation and upgrade,and proactively
35、promoted its technology park business on the basis of its unique market,industry and operational resources.Following the implementation of a number of technology park projects in 2018,the Company moved on to plan for new parks in Haimen,Lankao,Yantai,Chongqing and other cities in the Reporting Perio
36、d.Konka Group Co.,Ltd.Interim Report 2019(Summary)6(II)Matters Related to Financial Reporting 1.Changes to Accounting Policies,Accounting Estimates or Measurement Methods Compared to Last Accounting Period The Ministry of Finance issued the revised versions of the accounting standards in relation to
37、 financial instruments,including the Accounting Standard No.22 for Business Enterprises Recognition and Measurement of Financial Instruments,the Accounting Standard No.23 for Business Enterprises Transfer of Financial Assets and the Accounting Standard No.24 for Business Enterprises Hedge Accounting
38、 on 31 March 2017,as well as the Accounting Standard No.37 for Business Enterprises Presentation of Financial Instruments on 2 May 2017.The four revised hina.The Company has adopted the New Accounting Standards for Financial Instruments since 1 January 2019 and prepared its financial statements in a
39、ccordance with the Format of Financial Statements for General Enterprises(applicable for enterprises adopting the New Accounting Standards for Financial Instruments or the new revenue accounting standard).Pursuant to the New Accounting Standards for Financial Instruments,the Company categorizes and
40、measures financial instruments(financial assets held by the and records the difference between the original carrying amount of a financial instrument and the new carrying amount on the date of the adoption of the New Accounting Standards for Financial Instruments in the beginning retained earnings o
41、r other comprehensive income of 2019.And the format of the General Enterprises(applicable for enterprises adopting the New Accounting Standards for Financial Instruments or the new revenue accounting standard)(regulatory document CK 2018 No.15).The aforesaid accounting policy changes have no materia
42、l impact on the financial condition,operating results or cash flows of the Company.2.Retrospective Restatements due to Correction of Material Accounting Errors in Reporting Period No such cases.Konka Group Co.,Ltd.Interim Report 2019(Summary)7 3.Changes to Scope of Consolidated Financial Statements
43、Compared to Last Accounting Period Subsidiary How subsidiary was obtained or disposed in the Reporting Period Effects on overall operations and operating performance Shenzhen Konka Shengxing Industrial Co.,Ltd.Set-up No material effects Shenzhen Youzhihui Technology Co.,Ltd.Set-up No material effect
44、s Suining Konka Electronic Technological Innovation Co.,Ltd.Set-up No material effects Shenzhen Xiaojia Technology Co.,Ltd.Set-up No material effects Yibin Konka Smart Technology Co.,Ltd.Set-up No material effects Konka Huanjia(Henan)Environmental Technology Co.,Ltd.Set-up No material effects Laizho
45、u Lairun Sewage Treatment Co.,Ltd.Set-up No material effects Funan Kangrun Water Co.,Ltd.Set-up No material effects Weifang Sihai Kangrun Investment Operation Co.,Ltd.Set-up No material effects Hefei Yihe Electronic Co.,Ltd.Set-up No material effects Lushan Kangrun Environment Management Co.,Ltd.Set
46、-up No material effects Shenzhen Huanan Investment Partnership(Limited Partnership)Set-up No material effects Chongqing Konka Technology Development Co.,Ltd.Set-up No material effects Dongguan Konka Investment Co.,Ltd.Set-up No material effects Rushan Yikang Shell Technology Incubator Co.,Ltd.Cancel
47、lation No material effects Yantai Huanhai Xinze Enterprise Management Co.,Ltd.Cancellation No material effects Shenzhen Konka E-display Co.,Ltd.Transfer of 15%equity interests in Shenzhen Konka E-display Co.,Ltd.The equity interests transfer generated great gains Chuzhou Konka Technology&Industry Development Co.,Ltd.Transfer of 51%equity interests in Chuzhou Konka Technology&Industry Development Co.,Ltd.The equity interests transfer generated great gains The Board of Directors Konka Group Co.,Ltd.6 August 2019
