KONKAGROUPCO.,LTD.ANNUALREPORT2019
2020-30
April2020
PartIImportantNotes,TableofContentsandDefinitionsTheBoardofDirectors(orthe“Board”),theSupervisoryCommitteeaswellasthedirectors,supervisorsandseniormanagementofKonkaGroupCo.,Ltd.(hereinafterreferredtoasthe“Company”)herebyguaranteethefactuality,accuracyandcompletenessofthecontentsofthisReportanditssummary,andshallbejointlyandseverallyliableforanymisrepresentations,misleadingstatementsormaterialomissionstherein.LiuFengxi,theCompany’slegalrepresentative,LiChunlei,theCompany’sChiefFinancialOfficer(CFO),andFengJunxiu,headoftheCompany’sfinancialdepartment(equivalenttofinancialmanager)herebyguaranteethattheFinancialStatementscarriedinthisReportarefactual,accurateandcomplete.AlltheCompany’sdirectorshaveattendedtheBoardmeetingforthereviewofthisReportanditssummary.Anyplansforthefutureorotherforward-lookingstatementsmentionedinthisReportanditssummaryshallNOTbeconsideredasabsolutepromisesoftheCompanytoinvestors.Therefore,investorsareremindedtoexercisecautionwhenmakinginvestmentdecisions.TheBoardhasapprovedafinaldividendplanasfollows:basedonthe2,407,945,408shares,acashdividendofRMB0.5(taxinclusive)per10sharesistobedistributedtotheshareholders,withnobonusissuefromeitherprofitorcapitalreserves.ThisReportanditssummaryhavebeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionsshallprevail.
TableofContents
PartIImportantNotes,TableofContentsandDefinitions ...... 2
PartIICorporateInformationandKeyFinancialInformation ...... 9
PartIIIBusinessSummary ...... 14
PartIVOperatingPerformanceDiscussionandAnalysis ...... 17
PartVSignificantEvents ...... 45
PartVIShareChangesandShareholderInformation ...... 88
PartVIIPreferredShares ...... 94
PartVIIIConvertibleCorporateBonds ...... 95
PartIXDirectors,Supervisors,SeniorManagementandStaff ...... 96
PartXCorporateGovernance ...... 107
PartXICorporateBonds ...... 117
PartXIIFinancialStatements ...... 122
PartXIIIDocumentsAvailableforReference ...... 333
Definitions
| Term | Definition |
| The“Company”,the“Group”,“KonkaGroup”or“we” | KonkaGroupCo.,Ltd.anditsconsolidatedsubsidiaries,exceptwherethecontextotherwiserequires |
| KonkaVentures | KonkaVenturesDevelopment(Shenzhen)Co.,Ltd. |
| YantaiKonka | YantaiKonkaHealthcareEnterpriseServiceCo.,Ltd. |
| ChengduKonkaIncubator | ChengduKonkaIncubatorManagementCo.,Ltd. |
| ChengduAnren | ChengduAnrenKonkaCulturalandCreativeIncubatorManagementCo.,Ltd. |
| KonkaEnterpriseService | GuiyangKonkaEnterpriseServiceCo.,Ltd. |
| ChuanghuiSmart | NanjingChuanghuiSmartTechnologyCo.,Ltd. |
| Cross-BorderTechnologicalInnovation | ShenzhenKonkaCross-BorderTechnologicalInnovationServiceCo.,Ltd. |
| KonkaEnterpriseManagement | GuizhouKonkaEnterpriseManagementServiceCo.,Ltd. |
| YibinKonkaIncubator | YibinKonkaIncubatorManagementCo.,Ltd. |
| AnhuiKonka | AnhuiKonkaElectronicCo.,Ltd. |
| KangzhiTrade | AnhuiKangzhiTradeCo.,Ltd. |
| KonkaFactoring | KonkaFactoring(Shenzhen)Co.,Ltd. |
| YoushiKangrong | YoushiKangrongCultureCommunicationCo.,Ltd. |
| KonkaUnifortune | ShenzhenKonkaUnifortuneTechnologyCo.,Ltd. |
| JialiInternational | JialiInternational(HongKong)Limited |
| Wankaida | ShenzhenWankaidaScienceandTechnologyCo.,Ltd. |
| DongguanKonka | DongguanKonkaElectronicCo.,Ltd. |
| TelecommunicationTechnology | ShenzhenKonkaTelecommunicationsTechnologyCo.,Ltd. |
| KonkaMobility | KonkaMobilityCo.,Limited |
| LifeElectricAppliance | ShenzhenKonkaLifeElectricApplianceCo.,Ltd. |
| MudanjiangAppliances | MudanjiangArcticOceanAppliancesCo.,Ltd. |
| KonkaEurope | KonkaEuropeGmbH |
| CommercialSystemTechnology | ShenzhenKonkaCommercialSystemTechnologyCo.,Ltd. |
| KonkaElectricalAppliances | ShenzhenKonkaElectricalAppliancesCo.,Ltd. |
| KonkaMaterial | HainanKonkaMaterialTechnologyCo.,Ltd. |
| MobileInterconnection | ShenzhenKonkaMobileInterconnectionTechnologyCo.,Ltd. |
| SichuanKonka | SichuanKonkaSmartTerminalTechnologyCo.,Ltd |
| YibinSmart | YibinKonkaSmartTechnologyCo.,Ltd. |
| AnhuiTongchuang | AnhuiKonkaTongchuangElectricalAppliancesCo.,Ltd. |
| AnhuiElectricalAppliance | AnhuiKonkaElectricalApplianceTechnologyCo.,Ltd. |
| FrestecRefrigeration | HenanFrestecRefrigerationApplianceCo.,Ltd. |
| FrestecSmart | HenanFrestecSmartEcoElectricalAppliancesCo.,Ltd. |
| FrestecElectricalAppliances | HenanFrestecElectricalAppliancesCo.,Ltd. |
| FrestecHouseholdAppliances | HenanFrestecHouseholdAppliancesCo.,Ltd. |
| PengrunTechnology | ShenzhenKonkaPengrunTechnology&IndustryCo.,Ltd. |
| JiaxinTechnology | JiaxinTechnologyCo.,Ltd. |
| E3info | E3info(Hainan)TechnologyCo.,Ltd. |
| YifangTechnology | ShenzhenKonkaYifangTechnologyCo.,Ltd. |
| DongguanPacking | DongguanKonkaPackingMaterialsCo.,Ltd. |
| E2info | ShenzhenE2infoNetworkTechnologyCo.,Ltd. |
| E2info(Hainan) | E2info(Hainan)NetworkTechnologyCo.,Ltd. |
| BeijingKonkaElectronic | BeijingKonkaElectronicCo.,Ltd. |
| KonkaLeasing | KonkaFinancialLeasing(Tianjin)Co.,Ltd. |
| FittingsTechnology | ShenzhenKonkaElectronicFittingsTechnologyCo.,Ltd. |
| BoluoKonkaPrecision | BoluoKonkaPrecisionTechnologyCo.,Ltd. |
| XiamenDalong | XiamenDalongTradingCo.,Ltd. |
| BoluoKonka | BoluoKonkaPCBCo.,Ltd. |
| HongKongKonka | HongKongKonkaLimited |
| KonkaElectricalAppliancesInvestment | KonkaElectricalAppliancesInvestment&DevelopmentCo.,Ltd. |
| ChainKingdomMemoryTechnologies | ChainKingdomMemoryTechnologiesCo.,Limited |
| ChainKingdomMemoryTechnologies(Shenzhen) | ChainKingdomMemoryTechnologies(Shenzhen)Co.,Ltd. |
| HefeiKONSEMI | HefeiKONSEMIStorageTechnologyCo.,Ltd. |
| KonkaSmartTech | KonkaSmartTechLimited |
| Kangjietong | Kangjietong(HongKong)Limited |
| KonkaElectricalAppliancesInternationalTrading | KonkaElectricalAppliancesInternationalTradingCo.,Ltd. |
| KanghaoTechnology | KanghaoTechnologyCo.,Ltd. |
| YuekangSemiconductor | YuekangSemiconductorTechnology(Yantai)Co.,Ltd. |
| KonkaNorthAmerica | KonkaNorthAmericaLLC |
| KonkaInvestment | ShenzhenKonkaInvestmentHoldingCo.,Ltd. |
| YibinKonkaTechnologyPark | YibinKonkaTechnologyParkOperationCo.,Ltd. |
| IndustrialNewTown | SichuanKonkaIndustrialNewTownDevelopmentCo.,Ltd. |
| KonkaCapital | ShenzhenKonkaCapitalEquityInvestmentManagementCo.,Ltd. |
| KonkaSuiyong | KonkaSuiyongInvestment(Shenzhen)Co.,Ltd. |
| KangxinTechnology | ShenzhenKonkaKangxinTechnologyCo.,Ltd. |
| KangquanEnterprise | ShenzhenKangquanEnterpriseManagementConsultingCo.,Ltd. |
| KonkaSuyuan | ShenzhenKonkaSuyuanInvestmentIndustrialCo.,Ltd. |
| HainanTechnology | HainanKonkaTechnologyIndustryDevelopmentCo.,Ltd. |
| ShengxingIndustrial | ShenzhenKonkaShengxingIndustrialCo.,Ltd. |
| IndustrialParkDevelopment | ShenzhenKonkaIndustrialParkDevelopmentCo.,Ltd. |
| ZhitongTechnology | ShenzhenKonkaZhitongTechnologyCo.,Ltd. |
| Kangjiatong | SichuanKangjiatongTechnologyCo.,Ltd. |
| ElectronicsTechnology | ShenzhenKonkaElectronicsTechnologyCo.,Ltd. |
| XingDaHongYe | GuangDongXingDaHongYeElectronicCo.,Ltd. |
| ShanghaiXinfeng | ShanghaiXinfengZhuoqunPCBCo.,Ltd. |
| ShenzhenYixinSupplyChain | ShenzhenYixinSupplyChainManagementCo.,Ltd. |
| AnhuiZhilian | AnhuiKonkaZhilianE-CommerceCo.,Ltd. |
| NanjingKonka | NanjingKonkaSmartTechnologyCo.,Ltd. |
| Youzhihui | ShenzhenYouzhihuiTechnologyCo.,Ltd. |
| XiaojiaTechnology | ShenzhenXiaojiaTechnologyCo.,Ltd. |
| HaimenKonka | HaimenKonkaSmartTechnologyCo.,Ltd. |
| ChengduKonkaSmart | ChengduKonkaSmartTechnologyCo.,Ltd. |
| ChengduKonkaElectronic | ChengduKonkaElectronicCo.,Ltd. |
| EconTechnology(inclusiveofitsconsolidatedsubsidiaries) | ShandongEconTechnologyCo.,Ltd. |
| YantaiKangyun | YantaiKangyunIndustrialDevelopmentCo.,Ltd. |
| YantaiLaikang | YantaiLaikangIndustrialDevelopmentCo.,Ltd. |
| KonkaHuanjia | KonkaHuanjia(Dalian)EnvironmentalTechnologyCo.,Ltd. |
| KonkaHuanjia(Henan) | KonkaHuanjia(Henan)EnvironmentalTechnologyCo.,Ltd. |
| ShanghaiKonka | ShanghaiKonkaIndustrialCo.,Ltd. |
| ChuzhouKangyong | ChuzhouKangyongHealthIndustryDevelopmentCo.,Ltd. |
| YantaiKonkaIndustrial | YantaiKonkaIndustrialCo.,Ltd. |
| YantaiKangjin | YantaiKangjinTechnologyDevelopmentCo.,Ltd. |
| ShandongKangxin | ShandongKangxinIndustrialDevelopmentCo.,Ltd. |
| JiangxiKonka | JiangxiKonkaNewMaterialTechnologyCo.,Ltd. |
| XinfengMicrocrystalline | JiangxiXinfengMicrocrystallineJadeCo.,Ltd. |
| NanoCrystallizedGlass | JiangxiGoldenPhoenixNanoCrystallizedGlassCo.,Ltd. |
| ShenzhenNianhua | ShenzhenNianhuaEnterpriseManagementCo.,Ltd. |
| ShenzhenKONSEMI | ShenzhenKONSEMICo.,Ltd. |
| ShenzhenMeixin | ShenzhenMeixinSemiconductorTechnologyCo.,Ltd. |
| ZhengmaoSemiconductor | ChongqingZhengmaoSemiconductorCo.,Ltd. |
| HefeiKONSEMI | HefeiKONSEMIStorageTechnologyCo.,Ltd. |
| YiheElectronic | HefeiYiheElectronicCo.,Ltd. |
| ChongqingKonka | ChongqingKonkaTechnologyDevelopmentCo.,Ltd. |
| ShenzhenHuiyingTechnology | ShenzhenKonkaHuiyingTechnologyCo.,Ltd. |
| ChongqingHuiyingTechnology | ChongqingKonkaHuiyingTechnologyCo.,Ltd. |
| KonkaEco-Development | ShenzhenKonkaEco-DevelopmentInvestmentCo.,Ltd. |
| SuiningKonkaIndustrialPark | SuiningKonkaIndustrialParkDevelopmentCo.,Ltd. |
| KonkaRonghe | KonkaRongheIndustrialTechnology(Foshan)Co.,Ltd. |
| SuiningElectronicTechnologicalInnovation | SuiningKonkaElectronicTechnologicalInnovationCo.,Ltd. |
| DongguanKonkaInvestment | DongguanKonkaInvestmentCo.,Ltd. |
| ShenzhenChuangzhiElectricalAppliances | ShenzhenKonkaChuangzhiElectricalAppliancesCo.,Ltd. |
| Kanghong(Yantai)Environmental | Kanghong(Yantai)EnvironmentalTechnologyCo.,Ltd. |
| Kanghong(Yantai)EnvironmentalTechnologyPark | Kanghong(Yantai)EnvironmentalTechnologyParkCo.,Ltd. |
| ChongqingKangxingrui | ChongqingKangxingruiEnvironmentalTechnologyCo.,Ltd. |
| ChongqingOptoelectronicTechnologyResearchInstitute | ChongqingKonkaOptoelectronicTechnologyResearchInstituteCo.,Ltd. |
| XinyingSemiconductor | KonkaXinyingSemiconductorTechnology(Shenzhen)Co.,Ltd. |
| Jiangkang(Shanghai)Technology | Jiangkang(Shanghai)TechnologyCo.,Ltd. |
| ChongqingPropertyDevelopment | ChongqingKonkaPropertyDevelopmentCo.,Ltd. |
| ChongqingXingyiPropertyDevelopment | ChongqingKonkaXingyiPropertyDevelopmentCo.,Ltd. |
| ChongqingFuzeProperty | ChongqingKonkaFuzePropertyCo.,Ltd. |
| NingboKanghanruiElectricalAppliances | NingboKanghanruiElectricalAppliancesCo.,Ltd. |
| KonkaIntelligentManufacturing | ShenzhenKonkaIntelligentManufacturingTechnologyCo.,Ltd. |
| DebaoNewMaterial | AnhuiKonkaDebaoNewMaterialTechnologyCo.,Ltd. |
| SuiningJiarunProperty | SuiningJiarunPropertyCo.,Ltd. |
| ChuzhouKangxinHealthIndustry | ChuzhouKangxinHealthIndustryDevelopmentCo.,Ltd. |
| KangxinlongEnvironmentalProtection | HubeiKangxinlongEnvironmentalProtectionCo.,Ltd. |
| CSRC | TheChinaSecuritiesRegulatoryCommission |
| SZSE | TheShenzhenStockExchange |
| CSRCShenzhen | TheShenzhenBureauoftheChinaSecuritiesRegulatoryCommission |
| RMB,RMB’0,000,RMB’00,000,000 | ExpressedintheChinesecurrencyofRenminbi,expressedintensofthousandsofRenminbi,expressedinhundredsofmillionsofRenminbi |
PartIICorporateInformationandKeyFinancialInformationICorporateInformation
| Stockname | KonkaGroup-A,KonkaGroup-B | Stockcode | 000016,200016 |
| Changedstockname(ifany) | N/A | ||
| Stockexchangeforstocklisting | ShenzhenStockExchange | ||
| CompanynameinChinese | 康佳集团股份有限公司 | ||
| Abbr. | 康佳集团 | ||
| CompanynameinEnglish(ifany) | KONKAGROUPCO.,LTD | ||
| Abbr.(ifany) | KONKAGROUP | ||
| Legalrepresentative | LiuFengxi | ||
| Registeredaddress | 15-24/F,KonkaR&DCenter,28KejiSouthTwelfthRoad,ScienceandTechnologyPark,YuehaiStreet,NanshanDistrict,Shenzhen,GuangdongProvince,China | ||
| Zipcode | 518057 | ||
| Officeaddress | 15-24/F,KonkaR&DCenter,28KejiSouthTwelfthRoad,ScienceandTechnologyPark,YuehaiStreet,NanshanDistrict,Shenzhen,GuangdongProvince,China | ||
| Zipcode | 518057 | ||
| Companywebsite | www.konka.com | ||
| Emailaddress | szkonka@konka.com | ||
IIContactInformation
| BoardSecretary | SecuritiesRepresentative | |
| Name | WuYongjun | MiaoLeiqiang |
| Address | BoardSecretariat,24/F,KonkaR&DCenter,28KejiSouthTwelfthRoad,ScienceandTechnologyPark,YuehaiStreet,NanshanDistrict,Shenzhen,GuangdongProvince,China | BoardSecretariat,24/F,KonkaR&DCenter,28KejiSouthTwelfthRoad,ScienceandTechnologyPark,YuehaiStreet,NanshanDistrict,Shenzhen,GuangdongProvince,China |
| Tel. | 0755-26609138 | 0755-26609138 |
| Fax | 0755-26601139 | 0755-26601139 |
| Emailaddress | szkonka@konka.com | szkonka@konka.com |
IIIMediaforInformationDisclosureandPlacewherethisReportIsLodged
| NewspapersdesignatedbytheCompanyforinformationdisclosure | SecuritiesTimes,etc. |
| WebsitedesignatedbyCSRCforpublicationofthisReport | http://www.cninfo.com.cn/new/index |
| PlacewherethisReportislodged | BoardSecretariat,24/F,KonkaR&DCenter,28KejiSouthTwelfthRoad,ScienceandTechnologyPark,YuehaiStreet,NanshanDistrict,Shenzhen,GuangdongProvince,China |
IVChangetoCompanyRegisteredInformation
| Unifiedsocialcreditcode | 914403006188155783 |
| ChangetoprincipalactivityoftheCompanysincegoingpublic(ifany) | Nochange |
| Everychangeofcontrollingshareholdersinceincorporation(ifany) | Nochange |
VOtherInformationTheindependentauditfirmhiredbytheCompany:
| Name | ShinewingCertifiedPublicAccountantsLLP |
| Officeaddress | 9/F,BlockA,FuhuaMansion,No.8ChaoyangmenNorthStreet,DongchengDistrict,Beijing,China |
| Accountantswritingsignatures | GuoDongchaoandLiuLihong |
TheindependentsponsorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyintheReportingPeriod:
□Applicable√NotapplicableTheindependentfinancialadvisorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyintheReportingPeriod:
□Applicable√NotapplicableVIKeyFinancialInformationIndicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.□Yes√No
| 2019 | 2018 | 2019-over-2018change(%) | 2017 | |
| Operatingrevenue(RMB) | 55,119,125,478.72 | 46,126,797,341.33 | 19.49% | 31,227,763,249.71 |
| Netprofitattributabletothelistedcompany’sshareholders(RMB) | 212,034,210.08 | 411,289,744.68 | -48.45% | 5,057,025,155.71 |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses(RMB) | -1,875,722,546.18 | -795,400,491.44 | -135.82% | -97,284,945.83 |
| Netcashgeneratedfrom/usedinoperatingactivities(RMB) | -1,543,947,284.59 | -3,229,823,872.66 | 52.20% | -4,314,257,622.47 |
| Basicearningspershare(RMB/share) | 0.0881 | 0.1708 | -48.42% | 2.1001 |
| Dilutedearningspershare(RMB/share) | 0.0881 | 0.1708 | -48.42% | 2.1001 |
| Weightedaveragereturnonequity(%) | 2.62% | 5.11% | -2.49% | 63.26% |
| 31December2019 | 31December2018 | Changeof31December2019over31December2018(%) | 31December2017 | |
| Totalassets(RMB) | 42,586,955,452.27 | 32,985,061,889.03 | 29.11% | 23,558,735,469.78 |
| Equityattributabletothelistedcompany’sshareholders(RMB) | 8,068,505,598.13 | 8,104,736,790.53 | -0.45% | 7,994,145,476.61 |
VIIAccountingDataDifferencesunderChina’sAccountingStandardsforBusinessEnterprises(CAS)andInternationalFinancialReportingStandards(IFRS)andForeignAccountingStandards
1.NetProfitandEquityunderCASandIFRS
□Applicable√NotapplicableNodifferencefortheReportingPeriod.
2.NetProfitandEquityunderCASandForeignAccountingStandards
□Applicable√NotapplicableNodifferencefortheReportingPeriod.VIIIKeyFinancialInformationbyQuarter
Unit:RMB
| Q1 | Q2 | Q3 | Q4 | |
| Operatingrevenue | 10,772,118,842.18 | 15,264,323,971.66 | 15,644,806,446.79 | 13,437,876,218.09 |
| Netprofitattributabletothelistedcompany’sshareholders | 85,566,720.43 | 267,200,300.30 | 97,725,667.63 | -238,458,478.28 |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses | -418,684,690.19 | -204,226,943.38 | -423,396,028.22 | -829,414,884.39 |
| Netcashgeneratedfrom/usedinoperatingactivities | -540,740,144.72 | -1,502,216,027.05 | -529,623,670.17 | 1,028,632,557.35 |
IndicatebytickmarkwhetheranyofthequarterlyfinancialdatainthetableaboveortheirsummationsdiffersmateriallyfromwhathavebeendisclosedintheCompany’squarterlyorinterimreports.
□Yes√NoIXExceptionalGainsandLosses
√Applicable□Notapplicable
Unit:RMB
| Item | 2019 | 2018 | 2017 | Note |
| Gainorlossondisposalofnon-currentassets(inclusiveofimpairmentallowancewrite-offs) | 1,202,401,420.41 | 732,818,574.90 | 6,470,215,253.82 | |
| Governmentsubsidieschargedtocurrentprofitorloss(exclusiveofgovernmentsubsidiesgivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsasperthegovernment’suniformstandards) | 1,204,519,346.40 | 259,609,022.27 | 178,372,701.34 | |
| GainequaltotheamountbywhichinvestmentcostsfortheCompanytoobtainsubsidiaries,associatesandjointventuresarelowerthantheCompany’senjoyablefairvalueofidentifiablenetassetsofinvesteeswhenmakinginvestments | 0.00 | 220,045,229.63 | ||
| Gainorlossonassetsentrustedtootherentitiesforinvestmentormanagement | 71,541,978.85 | 182,022,653.32 | 70,070,846.08 | |
| Gainorlossondebtrestructuring | 14,515,006.57 | |||
| Gainorlossonfair-valuechangesinheld-for-tradingandderivativefinancialassetsandliabilities&incomefromdisposalofheld-for-tradingandderivativefinancialassetsandliabilitiesandotherinvestmentsindebtobligations(exclusiveoftheeffectiveportionofhedgesthatariseintheCompany’sordinarycourseofbusiness) | 49,472,415.17 | 39,542,461.74 | -63,931,276.14 | |
| Gainorlossonloanentrustments | 1,992,676.20 | 1,389,042.48 | 808,737.50 |
| Non-operatingincomeandexpenseotherthantheabove | 121,189,478.51 | 73,907,331.00 | 41,449,367.77 | |
| Othergainsandlossesthatmeetthedefinitionofexceptionalgain/loss | 145,586,810.18 | 17,974,523.98 | 87,640,651.87 | |
| Less:Incometaxeffects | 545,067,993.60 | 253,497,204.45 | 1,603,618,658.08 | |
| Non-controllinginterestseffects(netoftax) | 178,394,382.43 | 67,121,398.75 | 26,697,522.62 | |
| Total | 2,087,756,756.26 | 1,206,690,236.12 | 5,154,310,101.54 | -- |
ExplanationofwhytheCompanyreclassifiesasrecurrentanexceptionalgain/lossitemdefinedorlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems:
√Applicable□Notapplicable
| Item | Amountinvolved(RMB) | Reason |
| Taxrebatesonsoftware | 39,348,087.93 | GovernmentsubsidiesgivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsaspergovernment’suniformstandards |
PartIIIBusinessSummary
IPrincipalActivityoftheCompanyintheReportingPeriod(I)TheConsumerElectronicDivisionThisdivisionprimarilycomprisesthemultimediasub-division,thewhitegoodssub-divisionandthemobilephonesub-division,withdetailsasfollows:
1.TheMultimediaSub-DivisionTheCompanyprovidesmultimediaproductsandservices,includingcolourTVsandInternetTVservices,forbothdomesticandoverseasmarkets.ThedomesticsalesoftheCompany’scolourTVsarerealizedmainlythroughB2B(Business-to-Business)andB2C(Business-to-Consumer),withitsbranchcompanies,businessdepartmentsandafter-salesmaintenancepointsoperatingacrossthecountry.AndtheCompanyprofitsfromthemarginsbetweenthecostsandthesellingpricesofitscolourTVs.AsforsellingitscolourTVsabroad,theCompanymainlyreliesonB2B.ItscolourTVsaresoldtoAsiaPacific,MiddleEast,Central&SouthAmerica,EastEurope,etc.AndoperatingprofitsourceisalsothedifferencesbetweenthecostsandthesellingpricesofitscolourTVs.InternetbusinessisbasedontheintelligentTVterminalssoldbyourcompany.Itmainlycarriesoutthreeaspectsofbusiness.Firstly,itworkswithotherInternetcompaniestoprovideenduserswith,amongothercontent,video,educational,music,medicalandgamecontenttogenerateearnings.Secondly,itanalysesuserbehavioursandoffercertainfree,interactiveservicestoincreaseattractivenesstousers,promoteitsbrandandstimulatedesireforitshardwareproducts.Finally,itistryingtobuildanInternetTVplatformwithtensofmillionsofusers,onwhichitwillprofitthroughcommercialandapplicationdistribution.ThisInternetTVbusinessiskeytotheCompany’sInternet-orientedtransformationandupgradetoadevelopmentmodelof“hardware+software”and“smartTV+endusers”.
2.TheWhiteGoodsSub-DivisionThewhitegoodsproducedbytheCompanymainlyincluderefrigerators,washingmachines,airconditioners,freezers,etc.,whicharesoldthroughB2BandB2Cmainlytothedomesticmarket.AndtheCompanyprofitsfromthemarginsbetweenthecostsandthesellingpricesofitswhitegoods.
3.TheMobilePhoneSub-DivisionThemobilephonesoftheCompanyaresoldtoboththedomesticandoverseasmarkets.TheoverseassalesmainlyrelyonB2Bandtheprofitcomesfromthemarginsbetweenthecostsandthesellingpricesofthemobilephones.Asforthedomesticsalesofitsmobilephones,theCompanyreliesonB2BandB2C,andprofitsmainlyfromthecostsandthesellingpricesofitsproductsand
slightlyfromtherelatedvalueaddedservices.(II)TheIndustryTradeBusinessIntheindustrytradebusiness,theCompanybenefitsfrompurchasingandprocessingICchips,LCDscreens,etc.,whicharerawmaterialsinitstraditionalcorebusiness,fromupstreamsuppliersandsellingthemtodownstreamcustomers.TheindustrytradebusinesscanhelptheCompanyestablishgoodrelationshipswithitsupstreamsuppliersanddownstreamcustomers,andkeepitinformedofpricesofthematerialsusedinitsproductionforbettercostcontroloveritsexistingproducts.(III)TheEnvironmentalProtectionDivisionCurrently,thisbusinessfocusesonwatertreatment,recyclingofrenewableresourcesandthenewmaterialofglassceramic.WaterengineeringPPP(Public-PrivatePartnership)projectsareundertakenunderBOT(Build-Operate-Transfer)orEPC(EnergyPerformanceContracting)models.Renewableresourcesarecollected,sorted,processed,distributedandsold.Andglassceramicproductsaredeveloped,producedandmarketed.(IV)TheSemi-ConductorDivisionCurrently,theCompanyisengagedinstorage,optoelectronics,etc.withrespecttothesemi-conductorbusiness.Instorage,theCompanyprimarilydesignsandmarketsmasterstoragechips,andintendstoengageinpackagingandtestingofstorageproducts.Inoptoelectronics,theCompanyprimarilydevelopsMicroLED-relatedproducts.IISignificantChangesinMajorAssets
1.SignificantChangesinMajorAssets
| Majorassets | Mainreasonforsignificantchanges |
| Equityassets | Up31.38%asat31December2019comparedto31December2018,primarilydrivenbythereclassificationofequityinterestsinformerlyconsolidatedsubsidiarytoalong-termequityinvestmentmeasuredatfairvalueduetolossofcontrol,andnewinvestmentsinequityinterestsinassociates. |
| Fixedassets | Nosignificantchange |
| Intangibleassets | Up64.45%asat31December2019comparedto31December2018,primarilydrivenbytheRMB450millionoflanduserightspurchasedbytheSmartfactorybusinessin2019 |
| Constructioninprogress | Up97.14%asat31December2019comparedto31December2018,primarilydrivenbythecommencementofconstructionofcertainPPPprojectsin2019intheenvironmentalprotectionbusiness |
2.MajorAssetsOverseas
□Applicable√Notapplicable
IIICoreCompetitivenessAnalysisTheCompany’scorecompetitivenessliesinitsR&Dability,brand,marketingnetworkandhumanresources.Ithasdevelopedathree-levelR&Dsystemof“KonkaResearchInstitute-MultimediaR&DCentre-specializeddesigninstitutes”,withcloseto100coretechnologiesandapproximately1,500R&Dpersonnel.Meanwhile,ithasintroducedapproximately100technologicalprofessionalsforitstwoprogramsofMicroLEDandmasterstoragechips.Italsoboastsastrongbrandpresenceamongconsumers,aswellasamongbanksandotherfinancingchannels.Additionally,itsdomesticmarketingandservicenetwork,includingmorethan60branchcompanies,over200officesandabout3,000after-salesservicestationsacrossthecountry,directlyconnecttoaround3,000retailterminals,alongwithawell-establishedoverseasmarketingnetwork.Meanwhile,ithashigh-levelpersonnelwithyearsofrichmanagementandindustryexperience,aswellasahigh-qualityteamwithstrongexecutioncapabilities.
PartIVOperatingPerformanceDiscussionandAnalysis
IOverviewIn2019,theCompanycarriedonwithitslong-termdevelopmentstrategyof“Technology+Industry+Park”.Itstrengthenedthecapabilityofindependentinnovation,deepenedthedevelopmentofcoretechnologies,vigorouslypromotedemergingbusinesses,aswellasdevoteditselftobusinessrestructuringandtransformation.Theseeffortshaveproducedgoodresults.ThecolorTVbusinessoftheCompanyreportedalossduetorisingcosts,fiercercompetition,etc.For2019,theCompanyrecordedoperatingrevenueofRMB55.119billion,up19.49%year-on-year.NetprofitattributabletotheCompanyastheparentstoodatRMB212million,representingayear-on-yeardropof48.45%.WhattheCompanyhasaccomplishedin2019issummarizedasfollows:
(I)ContinuouslyIncreasetheR&DInvestmentandBoosttheTechnicalInnovationIn2019,theCompanyinvestedRMB501millioninR&D,up26.27%year-on-year.Asaresult,theCompanymadethefollowingR&Dachievements:theNationalSecondPrizeforProgressinScienceandTechnologywasawardedtotheCompany’sprogrammetheDigitalTVBroadcastSystemandtheDomesticationofCoreChips;theprogrammeledbytheCompanytheResearchandIndustrializationoftheNext-generationInternetIntelligentTerminalKeyTechnologywontheGuangdongProvincialSecondPrizeforProgressinScienceandTechnology;theprogrammeindependentlycompletedbytheCompanytheResearchandIndustrializationofKeyQualityManagementTechnologiesforFoodinRefrigeratorswontheThirdPrizeforProgressinScienceandTechnologyoftheChinaLightIndustryCouncil;the8KEquipmentEnd-to-EndSignalConnectionKeyTechnologyandR&DofTerminalDisplayProductswasincludedintheKeyR&DProgrammesofGuangdongProvince;theCompanycooperativelycompletedtheprogrammeNon-pointRiverBasinPollutionCauseAnalysisandControlKeyTechnologyandwontheNationalSecondPrizefortheEnvironmentalProtection.Inordertopromoteindustry-university-researchcooperation,introduceandgatherhigh-leveltalents,andenhanceindependentinnovationandcorecompetitiveness,inthereportperiodtheCompanyestablishedtheAcademicianWorkstationtogetherwithAcademicianLiJiachun.(II)ContinuetheBrandConstructionIn2019,theCompanyaimedatbuildingitsinternationalandtechnology-basedcorporateimageandmakingitsbrandmoreattractivetoyoungandhigh-endoriented.InordertorevitalizetheKonkabrand,theCompanyappliedvariousstrategies,initiatedtheCCTVNationalBrandPlan,signedacooperationcontractwithLuHan,atopstar,andboosteditsbrandupgradingbylaunchingthe
sub-brandAphaeaandreshapingtheFrestechElectricbrand.Throughouttheyear,theCompanyinvestedapproximatelyRMB460millioninbranding,up31.57%year-on-year,andmadeunremittingefforttobuilditsnewimage--aninternationalhigh-endbrandmoreattractivetoyoungthroughscientificandtechnologicalinnovations.(III)VariousIndustrialParkProjectswereImplemented.In2019,variousindustrialparkprojectsoftheCompanywereimplementedtofacilitateandguaranteeitsstrategictransformationandupgradingandexpansionofemergingindustries,includingKonka(Chuzhou)SmartAppliancesandEquipmentIndustrialPark,YibinKonkaSmartTerminalHigh-TechPark,DongguanKonkaSmartIndustrialPark,ChongqingKonkaSemi-conductorOptoelectronicsIndustrialPark,SuiningKonkaElectronicTechnologyIndustrialPark,KonkaChuzhouTechnologicalInnovationCentre,YantaiGreatHealthAcceleratorIndustrialPark,andHaimenHeadquarterforEasternChinaetc..(IV)PromotetheCoreCompetitivenessthroughtheMicroLEDLayout.InJune2019,theCompanyenteredacooperationagreementwithChongqingBishanDistrictPeople’sGovernmentwiththeproposalofbuildingChongqingKonkaSemi-conductorOptoelectronicsIndustrialPark;inSeptember2019,theCompanyformallyestablisheditsholdingsubsidiaryChongqingKonkaOptoelectricTechnologyInstituteCo.,Ltd.specializedintheR&D,designandproductionofMicroLED.Nowadays,inthefieldofMicroLED,theCompanyareapplying99patents,anditsindependently-developedMicroLEDDisplayScreenandMicroLEDlight-emittingchiphavebeensuccessfullyilluminatedinthelaboratory.(V)BusinessOperationHighlights
1.IndustrialProductDivision
(1)TheMultimediaSub-divisionIn2019,theCompany’smultimediabusinesslauncheditshigh-endsub-brandAphaea.Besides,theCompanyvigorouslyexpandedtheoverseasoperationofitsself-ownedbrand,andestablishedajointventurecompanyinEgypttorealizethelocalizedoperation.TheCompanyalsosetupamarketingcompanyintheU.S.A,layingagoodfoundationforitsgloballayout.
(2)TheWhiteGoodsSub-divisionAftertheacquisitionofFrestecElectricalAppliances,theCompanyinternallyoptimizedtheR&D,purchasing,production,salesandafter-salesserviceofthewhitegoods.Externally,theCompanyintegratedvariouschannelresources,realizedthereuseofchannelsownedbyupstreamsuppliersanddownstreamsuppliersbetweenFrestecElectricandKonka,continuouslyimprovedtheproductmarketingstructure,strengthenedtheonlinechannelmanagementandenhancedthemanagementquality.Intheyear,theCompany’swhitegoodsbusinessachievedoperatingrevenueofRMB3.829billion,up79.97%year-on-year.
(3)TheEnvironmentalProtectionTechnologySub-division
In2019,intermsofthewatertreatmentbusiness,theCompanywon14bidswiththebid-winningcontractamountexceedingRMB10billion.AstheCompanyalwayshighlightsthescientificandtechnologicalR&Dandinvestmentintotheenvironmentalprotectionbusiness,itsuccessfullysetuptheacademicianworkstationandjointlyestablishedlaboratorieswithvariouscollegesanduniversitiesincludingHarbinInstituteofTechnology.Inaddition,theCompanycooperativelycompletedtheprogrammeNon-pointRiverBasinPollutionCauseAnalysisandControlKeyTechnologyandwontheNationalSecondPrizefortheEnvironmentalProtection.
(4)TheSemiconductorTechnologySub-divisionIn2019,theCompanydevelopeditssemi-conductortechnologybusinessstepbystep.Ononehand,theCompanyestablisheditsholdingsubsidiaryChongqingKonkaOptoelectricTechnologyInstituteCo.,Ltd.inchargeoftheMicroLEDbusiness,anditsindependently-developedMicroLEDDisplayScreenandMicroLEDlight-emittingchiphavebeensuccessfullyilluminatedinthelaboratory;ontheotherhand,thestoragemaincontrolchipsindependentlydevelopedbytheCompany’sholdingsubsidiaryHefeiKonsemiwereputintovolumeproduction.Thefirstbatchofchips(100,000)weresoldoutinDecember2019.Inaddition,thecompany'smemorychiptestingbasehascompletedthepreliminaryplanning,isexpectedtobeintrialproductionattheendof2020.
(5)TheMobileInternetSub-divisionIn2019,bymeansofthestrategicanalysisandoperationaladjustment,theCompany’smobileInternetbusinessrecordedayear-on-yeargrowthof16.97%inoperatingrevenue,andgraduallytransformedfromthemanufacturingandsalesofmobilephonesintoaproviderofmultipleintelligentterminalsolutions.
(6)ThePCBSub-divisionInMay2019,theCompanyestablishedthePCBBusinessDivision.Bymeansoftheindustrialstructureestablishment,theresourcesintegration,theindustrialparkupgradingandtheoveralllayout,theCompanyincreasedtheproductscaleandpropelleditshigh-endorientation.
2.TechnologyParkDivisionIn2019,theCompanyvigorouslypromotedthestrategyof“Technology+Industry+Park”,continuouslydevelopednewprojectsandacceleratedtheconstructionofvariousprojects.Forexample,thelandsfortheconstructionofKonka(Chuzhou)SmartAppliancesandEquipmentIndustrialParkandYibinKonkaSmartTerminalHigh-TechParkwereobtained,andtheworkshopbuildingwascapped;asthelandsfortheconstructionofDongguanKonkaSmartIndustrialPark,ChongqingKonkaSemi-conductorOptoelectronicsIndustrialPark,YanchengSemiconductorPackagingandTestingBase,SuiningKonkaElectronicTechnologyIndustrialParkwereobtained,theyarenowunderconstruction.Meanwhile,greateffortisalsomadetopositivelyimplementotherindustrialparkprojectsincludingthetransformedWankangTownandGuxianEnvironmental
ProtectionTechnologyTownetc..
3.PlatformServiceDivision
(1)TheIndustryTradeBusinessIn2019,thecompany'sindustrialandtradebusinesswillfurtherexpandtotheprocessinglink:
throughcooperationwithleadingenterprisesintheindustry,thecompanyestablishedAnhuikangjiadebaoNewMaterialTechnologyCo.,Ltd.in2019,whichplanstofacethehomeappliance,automobile,officeequipment,plasticpackagingmarket,carryouttheproductionandsalesofmodifiedplastics,andgraduallyexplorethefieldofhigh-endmodifiedplasticstoimproveproductsCardvalue.
(2)TheInternetSub-divisionIn2019,throughpositivelyadjustingthestrategiesandoptimizingthebusinessstructure,theCompanysuccessfullysoughtvariouschannelsforacquiringtraffics,andachievedrevenueofRMB590millionwithagrossprofitofRMB230millioninitsInternetbusiness.
4.FinancialInvestmentDivision
(1)TheInvestmentSub-divisionIn2019,theCompanyemphasizedthelayoutofkeyfieldsincludingsemiconductors,environmentalprotectionandnewmaterials,andvigorouslypromotedtheapplicationofindustrialfunds.Inthesameyear,OrientKonkaIndustrialM&AFundsinvestedbytheCompanyachievesatotalinvestmentofRMB600million,andtheCompanyisalsopreparingotherfundsprojects.However,theCompany’swholly-ownedsubsidiaryKonkaCapitalhasobtainedcorrespondingqualificationastheprivateequityandventurecapitalfundmanager.
(2)TheVentureCapitalInvestmentSub-divisionUptotheendof2019,theCompanyrespectivelysetup11scientificinnovationcentersinShenzhen,Yantai,Nanjing,Guiyang,Chengdu,Yibin,DayiandKunming,andestablished7officesinChicagoandSiliconValleyetc..Atpresent,theCompanyhassuccessivelybuilt15incubatorsforitsscientificinnovationbusinessand82enterprisesareincubating.IICoreBusinessAnalysis(I)OverviewSee“IOverview”above.(II)RevenueandCostAnalysis
1.BreakdownofOperatingRevenue
Unit:RMB
| 2019 | 2018 | Change(%) | |||
| Operatingrevenue | As%oftotaloperatingrevenue(%) | Operatingrevenue | As%oftotaloperatingrevenue(%) | ||
| Total | 55,119,125,478.72 | 100% | 46,126,797,341.33 | 100% | 19.49% |
| Byoperatingdivision | |||||
| Electronics | 14,746,927,518.74 | 26.75% | 13,170,227,703.47 | 28.55% | 11.97% |
| TheIndustryTradeBusiness | 32,744,925,411.86 | 59.41% | 28,348,817,442.89 | 61.46% | 15.51% |
| Environmentalprotection | 7,079,397,665.91 | 12.84% | 3,020,514,260.13 | 6.55% | 134.38% |
| Other | 547,874,882.21 | 0.99% | 1,587,237,934.84 | 3.44% | -65.48% |
| Byproductcategory | |||||
| ColourTVs | 8,765,607,417.92 | 15.90% | 9,892,486,636.93 | 21.45% | -11.39% |
| Mobilephones | 387,519,655.81 | 0.70% | 331,298,592.29 | 0.72% | 16.97% |
| Whitegoods | 3,829,318,820.56 | 6.95% | 2,127,731,143.29 | 4.61% | 79.97% |
| TheIndustryTradeBusiness | 32,744,925,411.86 | 59.41% | 28,348,817,442.89 | 61.46% | 15.51% |
| Environmentalprotection | 7,079,397,665.91 | 12.84% | 3,020,514,260.13 | 6.55% | 134.38% |
| Other | 2,312,356,506.66 | 4.20% | 2,405,949,265.80 | 5.22% | -3.89% |
| Byoperatingsegment | |||||
| Domestic | 20,324,715,174.80 | 36.87% | 16,868,143,462.93 | 36.57% | 20.49% |
| Overseas | 34,794,410,303.92 | 63.13% | 29,258,653,878.40 | 63.43% | 18.92% |
2.OperatingDivision,ProductCategoryorOperatingSegmentContributingover10%ofOperatingRevenueorOperatingProfit
√Applicable□Notapplicable
Unit:RMB
| Operatingrevenue | Costofsales | Grossprofitmargin | YoYchangeinoperatingrevenue(%) | YoYchangeincostofsales(%) | YoYchangeingrossprofitmargin(%) | |
| Byoperatingdivision | ||||||
| Electronics | 14,746,927,518.74 | 13,118,800,956.63 | 11.04% | 11.97% | 16.52% | -3.48% |
| TheIndustryTradeBusiness | 32,744,925,411.86 | 32,376,857,384.01 | 1.12% | 15.51% | 15.35% | 0.13% |
| Environmentalprotection | 7,079,397,665.91 | 6,379,216,880.51 | 9.89% | 134.38% | 142.14% | -2.89% |
| Byproductcategory | ||||||
| ColourTVs | 8,765,607,417.92 | 8,005,508,211.90 | 8.67% | -11.39% | -7.87% | -3.49% |
| Supplychainmanagement | 32,744,925,411.86 | 32,376,857,384.01 | 1.12% | 15.51% | 15.35% | 0.13% |
| Environmentalprotection | 7,079,397,665.91 | 6,379,216,880.51 | 9.89% | 134.38% | 142.14% | -2.89% |
| Byoperatingsegment | ||||||
| Domestic | 20,324,715,174.80 | 17,807,235,103.96 | 12.39% | 20.49% | 21.60% | -0.80% |
| Overseas | 34,794,410,303.92 | 34,330,963,397.07 | 1.33% | 18.92% | 20.11% | -0.98% |
CorebusinessdataoftheprioryearrestatedaccordingtothechangedstatisticalcaliberfortheReportingPeriod:
□Applicable√Notapplicable
3.WhetherRevenuefromPhysicalSalesIsHigherthanServiceRevenue
√Yes□No
| Operatingdivision | Item | Unit | 2019 | 2018 | Change(%) |
| Electronics | Unitsales | 0,000units | 1,434 | 1,232 | 16.40% |
| Output | 0,000units | 1,523 | 1,063 | 15.05% | |
| Inventory | 0,000units | 105 | 129 | -18.60% |
Anyover30%YoYmovementsinthedataaboveandwhy:
□Applicable√Notapplicable
4.ExecutionProgressofMajorSignedSalesContractsintheReportingPeriod
□Applicable√Notapplicable
5.BreakdownofCostofSalesByproductcategory
Unit:RMB
| Productcategory | Item | 2019 | 2018 | Change(%) | ||
| Costofsales | As%oftotalcostofsales(%) | Costofsales | As%oftotalcostofsales(%) | |||
| ColorTVs | ColorTVs | 8,005,508,211.90 | 15.35% | 8,689,731,404.20 | 20.10% | -7.87% |
| Mobilephones | Mobilephones | 365,230,272.39 | 0.70% | 327,425,343.91 | 0.76% | 11.55% |
| Whitegoods | Whitegoods | 3,299,314,084.65 | 6.33% | 1,767,282,597.98 | 4.09% | 86.69% |
| TheIndustryTradeBusiness | Supplychainservices | 32,376,857,384.01 | 62.10% | 28,068,819,224.05 | 64.93% | 15.35% |
| Environmentalprotection | Environmentalprotection | 6,379,216,880.51 | 12.24% | 2,634,491,782.63 | 6.09% | 142.14% |
| Other | Other | 1,712,071,667.58 | 3.28% | 1,739,863,561.68 | 4.02% | -1.60% |
Note:
Theyear-on-yearchangeofcostofsalesandoperatingrevenue.
6.ChangesintheScopeofConsolidatedFinancialStatementsfortheReportingPeriod
√Yes□No
| Companyname | Registeredcapital(RMB’0,000) | TheCompany’sinterest(%) | Dateofchange | Reasonforchange |
| ShenzhenKonkaShengxingEnterpriseCo.,Ltd. | 10,000,000 | 51.00 | 2019-1-3 | Newlyestablished |
| ShenzhenYouzhihuiTechnologyCo.,Ltd. | 10,000,000 | 100.00 | 2019-1-24 | Newlyestablished |
| SuiningKonkaElectronicTechnologicalInnovationCo.,Ltd. | 200,000,000 | 100.00 | 2019-2-22 | Newlyestablished |
| ShenzhenXiaojiaTechnologyCo.,Ltd. | 10,000,000 | 100.00 | 2019-3-5 | Newlyestablished |
| YibinKonkaSmartTechnologyCo.,Ltd. | 20,000,000 | 100.00 | 2019-3-12 | Newlyestablished |
| KonkaHuanjia(Henan)EnvironmentalTechnologyCo.,Ltd. | 100,000,000 | 51.00 | 2019-4-1 | Newlyestablished |
| LaizhouLairunSewageTreatmentCo.,Ltd. | 56,361,600 | 24.14 | 2019-4-11 | Newlyestablished |
| FunanKangrunWaterCo.,Ltd. | 122,500,000 | 40.55 | 2019-5-10 | Newlyestablished |
| HefeiYiheElectronicCo.,Ltd. | 10,000,000 | 51.00 | 2019-5-14 | Newlyestablished |
| LushanKangrunEnvironmentManagementCo.,Ltd. | 100,000,000 | 45.44 | 2019-6-3 | Newlyestablished |
| ChongqingKonkaTechnologyDevelopmentCo.,Ltd. | 120,000,000 | 100.00 | 2019-6-6 | Newlyestablished |
| DongguanKonkaInvestmentCo.,Ltd. | 100,000,000 | 100.00 | 2019-6-28 | Newlyestablished |
| WuhanRunyuanSewageTreatmentCo.,Ltd. | 142,800,000 | 35.70 | 2019-7-15 | Newlyestablished |
| KanghaoTechnologyCo.,Ltd. | 2,000,000 | 67.00 | 2019-7-22 | Newlyestablished |
| ChongqingKangxingrunEnvironmentalProtectionTechnologyCo.,Ltd. | 50,000,000 | 51.00 | 2019-8-12 | Newlyestablished |
| ChongqingZhengmaoSemiconductorCo.,Ltd. | 10,000,000 | 51.00 | 2019-8-15 | Newlyestablished |
| ShenzhenKonkaIndustrialParkDevelopmentCo.,Ltd. | 100,000,000 | 51.00 | 2019-9-4 | Newlyestablished |
| ShenzhenKonkaChuangzhiElectricApplianceCo.,Ltd. | 10,000,000 | 100.00 | 2019-9-5 | Newlyestablished |
| Kanghong(Yantai)EnvironmentalProtectionTechnologyCo.,Ltd. | 30,000,000 | 51.00 | 2019-9-5 | Newlyestablished |
| TongchuanKangrunHonghuiEnvironmentManagementCo.,Ltd. | 76,000,000 | 45.39 | 2019-9-10 | Newlyestablished |
| KonkaNorthAmericaLLC | 1,000,000 | 100.00 | 2019-9-13 | Newlyestablished |
| HaimenKonkaSmartTechnologyCo.,Ltd | 50,000,000 | 100.00 | 2019-9-29 | Newlyestablished |
| BoxingCountyXingkangEnvironmentalProtectionTechnologyCo.,Ltd. | 100,000,000 | 35.70 | 2019-9-30 | Newlyestablished |
| ShenzhenKonkaHuiyingTechnologyCo.,Ltd. | 50,000,000 | 51.00 | 2019-9-30 | Newlyestablished |
| ChongqingKonkaPhotoelectricTechnologyResearchInstituteCo.,Ltd. | 2,000,000,000 | 75.00 | 2019-9-30 | Newlyestablished |
| ShenzhenKonkaZhitongTechnologyCo.,Ltd. | 10,000,000 | 51.00 | 2019-10-9 | Newlyestablished |
| KonkaXinyingSemiconductorTechnology(Shenzhen)Co.,Ltd. | 100,000,000 | 56.00 | 2019-10-29 | Newlyestablished |
| ChongqingKonkaHuiyingTechnologyCo.,Ltd. | 30,000,000 | 51.00 | 2019-10-30 | Newlyestablished |
| Jiangkang(Shanghai)TechnologyCo.,Ltd. | 20,000,000 | 51.00 | 2019-11-1 | Newlyestablished |
| E2info(Hainan)NetworkTechnologyCo.,Ltd. | 3,000,000 | 95.78 | 2019-11-6 | Newlyestablished |
| ChongqingKonkaPropertiesDevelopmentCo.,Ltd. | 50,000,000 | 51.00 | 2019-11-7 | Newlyestablished |
| Kanghong(Yantai)EnvironmentalProtectionTechnologyIndustrialParkCo.,Ltd. | 10,000,000 | 51.00 | 2019-11-18 | Newlyestablished |
| ChongqingKonkaXingyiPropertiesCo.,Ltd. | 50,000,000 | 51.00 | 2019-11-18 | Newlyestablished |
| ShenzhenKonkaKangxinTechnologyCo.,Ltd. | 10,000,000 | 51.00 | 2019-11-21 | Newlyestablished |
| ChongqingKonkaFuzePropertiesCo.,Ltd. | 50,000,000 | 51.00 | 2019-11-21 | Newlyestablished |
| SuiningJiarunPropertiesCo.,Ltd. | 10,000,000 | 100.00 | 2019-11-26 | Newlyestablished |
| ShenzhenKonkaZhizaoTechnologyCo.,Ltd. | 20,000,000 | 51.00 | 2019-11-29 | Newlyestablished |
| AnhuiKonkaJiadebaoNewMaterialTechnologyCo.,Ltd. | 50,000,000 | 60.00 | 2019-11-29 | Newlyestablished |
| YuekangSemiconductorTechnology(Yantai)Co.,Ltd. | 100,000,000 | 100.00 | 2019-12-5 | Newlyestablished |
| NingboKanghanruiElectricalAppliancesCo.,Ltd. | 150,000,000 | 60.00 | 2019-12-10 | Newlyestablished |
| HenanFrestecSmartEcologicalElectricalApplianceCo.,Ltd. | 10,000,000 | 51.00 | 2019-12-11 | Newlyestablished |
| HefeiChainKingdomMemoryTechnologiesCo.,Ltd. | 5,000,000 | 51.00 | 2019-12-18 | Newlyestablished |
| ChengduKonkaSmartTechnologyCo.,Ltd. | 50,000,000 | 100.00 | 2019-12-20 | Newlyestablished |
| ChengduKonkaElectronicsCo.,Ltd. | 50,000,000 | 100.00 | 2019-12-20 | Newlyestablished |
| HubeiKangxinlongEnvironmentalProtectionCo.,Ltd. | 30,000,000 | 51.00 | 2019-12-23 | Newlyestablished |
| TingyuanEnvironmentalProtectionTechnology(Shanghai)Co.,Ltd. | 50,000,000 | 51.00 | 2019-12-24 | Newlyestablished |
| ChuzhouKangxinHealthIndustryDevelopmentCo.,Ltd. | 30,000,000 | 100.00 | 2019-12-25 | Newlyestablished |
| YantaiKangyunIndustrialDevelopmentCo.,Ltd. | 30,000,000 | 51.00 | 2019-12-30 | Newlyestablished |
| YantaiLaikangIndustrialDevelopmentCo.,Ltd. | 10,000,000 | 51.00 | 2019-12-30 | Newlyestablished |
| ChuzhouKonkaTechnologyIndustryDevelopmentCo.,Ltd. | 40,000,000 | 49.00 | 2019-6-21 | Equitytransfer |
| ShenzhenKonkaE-displayCo.,Ltd. | 2,000,000 | 100.00 | 2019-6-21 | Losingcontrolpower |
| ChuzhouKangjinHealthIndustryDevelopmentCo.,Ltd. | 30,000,000 | 49.00 | 2019-9-25 | Equitytransfer |
| ShenzhenKangyueEnterpriseCo.,Ltd. | 20,000,000 | 49.00 | 2019-12-26 | Equitytransfer |
| HaimenKangjianTechnologyIndustrialParkOperationsManagementCo.,Ltd. | 100,000,000 | 30.00 | 2019-8-12 | Equitytransfer |
| YantaiKangyueInvestmentCo.,Ltd. | 20,000,000 | 49.00 | 2019-12-26 | Losingcontrolpower |
7.MajorChangestotheBusinessScopeorProductorServiceRangeintheReportingPeriod
□Applicable√Notapplicable
8.MajorCustomersandSuppliersMajorcustomers:
| Totalsalestotopfivecustomers(RMB) | 17,388,591,156.50 |
| Totalsalestotopfivecustomersas%oftotalsalesoftheReportingPeriod(%) | 31.55% |
| Totalsalestorelatedpartiesamongtopfivecustomersas%oftotalsalesoftheReportingPeriod(%) | 0.00% |
Topfivecustomers:
| No. | Customer | SalesrevenuecontributedfortheReportingPeriod(RMB) | As%oftotalsalesrevenue(%) |
| 1 | CustomerA | 7,331,759,302.16 | 13.30% |
| 2 | CustomerB | 5,865,449,956.62 | 10.64% |
| 3 | CustomerC | 1,874,539,856.30 | 3.40% |
| 4 | CustomerD | 1,410,894,148.68 | 2.56% |
| 5 | CustomerE | 905,947,892.74 | 1.64% |
| Total | -- | 17,388,591,156.50 | 31.55% |
Otherinformationaboutmajorcustomers:
√Applicable□NotapplicableNoneofthetopfivecustomerswererelatedpartiesoftheCompany.AndnoneoftheCompany’sdirectors,supervisors,executiveofficers,coretechnicians,over5%shareholders,actualcontrolleroranyotherrelatedpartiesheldequityinterestsinthemajorcustomers,directlyorindirectly.Majorsuppliers:
| Totalpurchasesfromtopfivesuppliers(RMB) | 19,691,061,479.97 |
| Totalpurchasesfromtopfivesuppliersas%oftotalpurchasesoftheReportingPeriod(%) | 38.48% |
| Totalpurchasesfromrelatedpartiesamongtopfivesuppliersas%oftotalpurchasesoftheReportingPeriod(%) | 0.00% |
Topfivesuppliers:
| No. | Supplier | PurchaseintheReportingPeriod(RMB) | As%oftotalpurchases(%) |
| 1 | Supplier1 | 8,557,141,283.65 | 16.72% |
| 2 | Supplier2 | 5,033,534,194.87 | 9.84% |
| 3 | Supplier3 | 2,626,139,417.84 | 5.13% |
| 4 | Supplier4 | 1,773,307,908.59 | 3.47% |
| 5 | Supplier5 | 1,700,938,675.01 | 3.32% |
| Total | -- | 19,691,061,479.97 | 38.48% |
Otherinformationaboutmajorsuppliers:
√Applicable□NotapplicableNoneofthetopfivecustomerswererelatedpartiesoftheCompany.AndnoneoftheCompany’sdirectors,supervisors,executiveofficers,coretechnicians,over5%shareholders,actualcontrolleroranyotherrelatedpartiesheldequityinterestsinthemajorcustomers,directlyorindirectly.
3.Expense
Unit:RMB
| 2019 | 2018 | Change(%) | Reasonforanysignificantchange | |
| Sellingexpense | 2,303,132,732.06 | 2,282,174,241.64 | 0.92% | |
| Administrativeexpense | 856,529,327.62 | 641,892,996.18 | 33.44% | Newlyincreaseincurrentoperatingexpenseofsubsidiary,reflectingintheincreaseoflaborcharges,depreciationcosts,consultingfee,patentfeeandrentalexpense. |
| Financecosts | 775,888,813.14 | 399,165,814.39 | 94.38% | Increaseinborrowingscale |
| R&Dexpense | 500,600,102.23 | 396,460,145.24 | 26.27% | IncreaseinR&Dexpensein2019 |
4.R&DExpense
√Applicable□NotapplicableWithintheReportingPeriod,theCompanyinvestedRMB501millionastheR&DExpenses,realizingayear-on-yeargrowthof26.27%.Asaresult,theCompanymadethefollowingR&Dachievements:theNationalSecondPrizeforProgressinScienceandTechnologywasawardedtotheCompany’sprogrammetheDigitalTVBroadcastSystemandtheDomesticationofCoreChips;theprogrammeledbytheCompanytheResearchandIndustrializationoftheNext-generationInternetIntelligentTerminalKeyTechnologywontheGuangdongProvincialSecondPrizeforProgressinScienceandTechnology;theprogrammeindependentlycompletedbytheCompanytheResearchandIndustrializationofKeyQualityManagementTechnologiesforFoodinRefrigeratorswontheThirdPrizeforProgressinScienceandTechnologyoftheChinaLightIndustryCouncil;the8KEquipmentEnd-to-EndSignalConnectionKeyTechnologyandR&DofTerminalDisplayProductswasincludedintheKeyR&DProgrammesofGuangdongProvince;theCompanycooperativelycompletedtheprogrammeNon-pointRiverBasinPollutionCauseAnalysisandControlKeyTechnologyandwontheNationalSecondPrizefortheEnvironmentalProtection;theCompanyestablishedtheAcademicianWorkstationtogetherwithAcademicianLiJiachun.WhiletheCompanywascontinuouslyimprovingthecorecompetitiveness,itcontinuedcorrespondingtechnicalinnovationandvariousproposalsforrationalizationsoastoincreasetheproductionefficiencyandenhancethecorecompetitiveness.DetailsaboutR&Dexpense:
| 2019 | 2018 | Change(%) | |
| NumberofR&Dpersonnel | 1,494 | 1,467 | 1.84% |
| R&Dpersonnelas%oftotalemployees | 7.75% | 7.74% | 0.01% |
| R&Dexpense(RMB) | 500,600,102.23 | 396,460,145.24 | 26.27% |
| R&Dexpenseas%ofoperatingrevenue | 0.91% | 0.86% | 0.05% |
| CapitalizedR&Dexpense(RMB) | 0.00 | 0.00 | 0.00% |
| CapitalizedR&Dexpenseas%oftotalR&Dexpense | 0.00% | 0.00% | 0.00% |
ReasonsforanysignificantYoYchangeinthepercentageofR&Dexpenseinoperatingrevenue:
□Applicable√NotapplicableReasonforanysharpvariationinthepercentageofcapitalizedR&Dexpenseandrationale:
□Applicable√Notapplicable
5.CashFlows
Unit:RMB
| Item | 2019 | 2018 | Change(%) |
| Subtotalofcashgeneratedfromoperatingactivities | 59,732,534,490.78 | 50,553,979,675.62 | 18.16% |
| Subtotalofcashusedinoperatingactivities | 61,276,481,775.37 | 53,783,803,548.28 | 13.93% |
| Netcashgeneratedfrom/usedinoperatingactivities | -1,543,947,284.59 | -3,229,823,872.66 | 52.20% |
| Subtotalofcashgeneratedfrominvestingactivities | 2,952,154,902.91 | 2,900,532,752.51 | 1.78% |
| Subtotalofcashusedininvestingactivities | 6,814,764,242.49 | 5,152,413,759.55 | 32.26% |
| Netcashgeneratedfrom/usedininvestingactivities | -3,862,609,339.58 | -2,251,881,007.04 | -71.53% |
| Subtotalofcashgeneratedfromfinancingactivities | 32,403,367,267.48 | 15,345,431,150.38 | 111.16% |
| Subtotalofcashusedinfinancingactivities | 25,938,350,195.40 | 9,548,537,823.66 | 171.65% |
| Netcashgeneratedfrom/usedinfinancingactivities | 6,465,017,072.08 | 5,796,893,326.72 | 11.53% |
| Netincreaseincashandcashequivalents | 1,059,552,435.50 | 336,249,777.96 | 215.11% |
Explanationofwhyanyofthedataabovevariessignificantly:
√Applicable□NotapplicableReasonsforthechangeofinflowandoutflowoffinancingactivities:inordertooptimizethefinancingstructure,furtherreducethefinancingcost,andensurethecapitaladequacyandcapitalflowstabilityoftheenterprise,thecompanywillissueRMB5billionofprivatecorporatebondsin2019,increasethelong-termborrowingbyRMB4.4billion,andarrangeshort-termborrowingandfinancingaccordingtothecapitalneeds.ReasonforanybigdifferencebetweenthenetoperatingcashflowandthenetprofitforthisReportingPeriod:theincreaseincashdepositsthatcannotbewithdrawnatanytime.
□Applicable√NotapplicableIIIAnalysisofNon-CoreBusinesses
√Applicable□Notapplicable
Unit:RMB
| Amount | As%oftotalprofit | Source/Reason | Exceptionalorrecurrent |
| Investmentincome | 1,183,381,090.39 | 262.64% | Dividendsfromsubsidiaries | Exceptional |
| Gain/lossonchangesinfairvalue | -3,005,381.67 | -0.67% | Exceptional | |
| Assetimpairments | -303,035,915.82 | -67.26% | Impairmentofreceivables | Exceptional |
| Non-operatingincome | 165,843,388.94 | 36.81% | Taxrebatesofsoftwareisrecurrentandothersareuncertain | |
| Non-operatingexpense | 18,533,352.41 | 4.11% | Exceptional |
IVAnalysisofAssetsandLiabilities
1.SignificantChangesinAssetCompositionAdjustmentstotheFinancialStatementsattheBeginningoftheFirstExecutionYearofanyNewStandardGoverningFinancialInstruments,RevenueorLeasesin2019
√Applicable□Notapplicable
Unit:RMB
| 31December2019 | 31December2018 | Changeinpercentage(%) | Reasonforanysignificantchange | |||
| Amount | As%oftotalassets | Amount | As%oftotalassets | |||
| Monetarycapital | 6,599,360,051.61 | 15.50% | 4,348,144,129.53 | 13.18% | 2.32% | |
| Accountsreceivable | 4,416,179,657.87 | 10.37% | 4,457,458,904.32 | 13.51% | -3.14% | |
| Inventories | 5,318,503,044.69 | 12.49% | 5,487,605,227.05 | 16.64% | -4.15% | |
| Investmentproperty | 400,197,374.07 | 0.94% | 210,824,355.72 | 0.64% | 0.30% | |
| Long-termequityinvestments | 3,465,541,196.89 | 8.14% | 2,637,780,825.53 | 8.00% | 0.14% | |
| Fixedassets | 2,561,254,191.55 | 6.01% | 2,410,226,495.81 | 7.31% | -1.30% | |
| Constructioninprogress | 4,291,544,368.52 | 10.08% | 2,176,871,530.80 | 6.60% | 3.48% | |
| Short-termborrowings | 10,332,687,239.63 | 24.26% | 13,884,132,931.63 | 42.09% | -17.83% | Repaidthepartialshort-termborrowingsin2019tooptimizethefinancingstructure. |
| Long-termborrowings | 4,890,315,729.90 | 11.48% | 445,000,000.00 | 1.35% | 10.13% | Newlyaddinginlong-termborrowingsofRMB3.3billion. |
2.AssetsandLiabilitiesatFairValue
√Applicable□Notapplicable
Unit:RMB
| Item | Beginningamount | Gain/lossonfair-valuechangesintheReportingPeriod | Cumulativefair-valuechangeschargedtoequity | ImpairmentallowancefortheReportingPeriod | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Endingamount |
| Financialassets | |||||||
| 1.Tradingfinancialassets(derivativefinancialassetsexcluded) | 66,959,651.89 | -5,464,984.92 | 61,494,666.97 | ||||
| 4.Otherequityinstrumentinvestment | 23,940,214.36 | 1,501,956.00 | 1,501,956.00 | 9,800,000.00 | 6,000,000.00 | 21,642,170.36 | |
| Subtotaloffinancialassets | 90,899,866.25 | 1,501,956.00 | 1,501,956.00 | 9,800,000.00 | 6,000,000.00 | -5,464,984.92 | 83,136,837.33 |
| Other | 741,891,626.27 | 49,757,327.83 | 49,757,327.83 | 1,298,308,671.82 | -193,661,626.27 | 1,896,295,999.65 | |
| Totaloftheabove | 832,791,492.52 | 51,259,283.83 | 51,259,283.83 | 9,800,000.00 | 1,304,308,671.82 | -199,126,611.19 | 1,979,432,836.98 |
| Financialliabilities | 2,459,603.25 | -2,459,603.25 |
SignificantchangestothemeasurementattributesofthemajorassetsintheReportingPeriod:
□Yes√No
3.RestrictedAssetRightsasatthePeriod-End
| Item | Endingcarryingvalue(RMB) | Reasonforrestriction |
| Monetaryassets | 2,105,658,134.39 | Amongthem,2060124748.03yuanismargindeposit,pledgeisusedforborrowingorissuingbankacceptancebill,17602910.31yuanisfinancialsupervisionaccountfund;17358307.91yuanisfixeddepositthatcannotbewithdrawninadvance;10572168.14yuanisrestrictedduetootherreasons. |
| Notesreceivable | 1,446,285,041.78 | ThecompanyusesthebankacceptancebillwithbookvalueofRMB1446285041.78aspledgeforcomprehensivefinancingbusinesssuchasissuingbankacceptancebill,letterofcredit,letterofguarantee,tradefinancing,Billpool,etc. |
| Fixedassets | 541,531,198.68 | Formortgageborrowings.Referto23.Short-termBorrowingsand32.Long-termBorrowingsinNoteVI |
| Intangibleassets | 106,367,068.52 | |
| Long-termreceivables | 351,861,826.09 | Formortgageborrowings.Referto32.Long-termBorrowingsinNoteVI. |
| Total | 4,551,703,269.46 |
VInvestmentsMade
1.TotalInvestmentAmount
√Applicable□Notapplicable
| AmountofReportingPeriod(RMB) | Amountofthesameperiodoflastyear(RMB) | Change(%) |
| 1,357,746,303.50 | 2,430,495,935.00 | -44.14% |
2.MajorEquityInvestmentsMadeintheReportingPeriod
□Applicable√Notapplicable
3.MajorNon-EquityInvestmentsOngoingintheReportingPeriod
√Applicable□Notapplicable
Unit:RMB
| Item | Investmentmethod | Fixedassetsinvestmentornot | Industryinvolved | InputamountintheReportingPeriod | Accumulativeactualinputamountasoftheperiod-end | Capitalresources | Progress | Estimatedrevenues | Accumulativerealizedrevenuesasoftheperiod-end | reasonfornotmeetingthescheduleandexpectedrevenues | Disclosuredate(ifany) | Disclosureindex(ifany) |
| DongguanKonkaSmartIndustrialPark | Self-build | Yes | Electronicindustry | 203,564,970.00 | 203,564,970.00 | Self-ownedfunds | N/A | 11March2017 | http://www.cninfo.com.cn/new/index | |
| YibinKonkaSmartTerminalHigh-TechPark | Self-build | Yes | Electronicindustry | 73,825,835.22 | 93,075,835.22 | Self-ownedfunds | N/A | 16December2017 | ||
| SuiningKonkaElectronicTechnologyIndustrialPark | Self-build | Yes | Electronicindustry | 63,321,477.77 | 63,321,477.77 | Self-ownedfunds | N/A | 17October2018 | ||
| Konka(Chuzhou)SmartAppliancesandEquipmentIndustrialPark | Self-build | Yes | Electronicindustry | 116,570,000.00 | 192,792,400.00 | Self-ownedfunds | N/A | 25December2018 | ||
| ChongqingKonkaSemiconductorPhotoelectricIndustrialPark | Self-build | Yes | Electronicindustry | 66,769,663.80 | 66,769,663.80 | Self-ownedfunds | N/A | 14June2019 |
| GuxianEnvironmentalProtectionTechnologyTown | Self-build | Yes | Environmentalprotectionindustry | 0 | 0 | Self-ownedfunds | N/A | 26November2019 | |||
| YanchengSemiconductorAssembly&TestBase | Self-build | Yes | Electronicindustry | 0 | 0 | Self-ownedfunds | N/A | 26November2019 | |||
| Total | -- | -- | -- | 524,051,946.79 | 619,524,346.79 | -- | -- | -- | -- | -- |
Note:WithrespecttoKonka(Chuzhou)SmartAppliancesandEquipmentIndustrialPark,thelandhasbeenobtainedandthemainbuildingoffactoryhasbeencompletedtosealthetop;asforDongguanKonkaSmartIndustrialPark,ChongqingKonkaSemiconductorPhotoelectricIndustrialPark,YanchengSemiconductorAssembly&TestBaseandSuiningKonkaElectronicTechnologyIndustrialPark,thelandhasbeenobtainedandareinconstruction.AsforGuxianEnvironmentalProtectionTechnologyTown,preparationsareunderwayandtheCompanyiswaitingforthelocalgovernmenttoputouttheprojecttargetlandforbids.
4.FinancialInvestments
(1)SecuritiesInvestments
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(2)InvestmentsinDerivativeFinancialInstruments
√Applicable□Notapplicable
| Legalmattersinvolved(ifapplicable) | U.S.dollarfinancings |
| Disclosuredateofboardannouncementapprovingderivativeinvestment(ifany) | None |
| Disclosuredateofshareholders’meetingannouncementapprovingderivativeinvestment(ifany) | 24May2014 |
| Analysisofrisksandcontrolmeasures | 10June2014 |
| associatedwithderivativeinvestmentsheldinReportingPeriod(includingbutnotlimitedtomarketrisk,liquidityrisk,creditrisk,operationalrisk,legalrisk,etc.) | |
| Legalmattersinvolved(ifapplicable) | Weengageinforwardforextransactionstoreducethecurrencyriskwhensecuringforeign-currencyfinancing.Thisisveryneededinourroutineoperationandisincompliancewiththeapplicablelawsandregulations.WehaveformulatedtheManagementRulesofKonkaGroupCo.,Ltd.forInvestmentInDerivativeFinancialInstruments,makingcleartherelevantconsiderationandapprovalprocedure,riskcontrol,etc..WealwayssignforwardforexcontractswithlargebankssuchastheBankofChina,whichoperatesteadilyandhavegoodcreditstanding,whichcouldhelppreventlossonforwardforexcontractsduetobankfailure. |
| ChangesinmarketpricesorfairvalueofderivativeinvestmentsinReportingPeriod(fairvalueanalysisshouldincludemeasurementmethodandrelatedassumptionsandparameters) | Howweusuallymeasurethefairvalueofderivativefinancialinstruments:BasedontheforwardforexsalesandpurchasecontractsthataresignedbetweentheCompanyandbanksandhavenotexpiredinaReportingPeriod,werecognizethedifferencesbetweenthequotationsforthesecontractsonthebalancesheetdatesprovidedbythebanksandthecontractualpricesastransactionalfinancialassetsorliabilities,andtheprofit/lossonfairvaluechangesisrecognizedaccordingly.Becausethesecontractshavelockedinexchangerates,nochangeswilloccurwhencomparingthefairvalueonsigningdateswiththatondeliverydates. |
| MaterialchangesinaccountingpoliciesandspecificaccountingprinciplesadoptedforderivativeinvestmentsinReportingPeriodcomparedtolastreportingperiod | Nomaterialchanges |
| Opinionofindependentdirectorsonderivativeinvestmentsandriskcontrol | ItisconsiderednecessaryfortheCompanytolockinforeign-currencyfinancingcoststhroughfinancialinstruments,becauseitcouldeffectivelyreducethecurrencyriskwhensecuringforeign-currencyfinancing.TheCompanyhasformulatedtheinternalcontrolmechanismforinvestmentinderivativefinancialinstruments,andtherelevantriskcontrolmeasuresthattheCompanyhastakenareconsideredeffective. |
Unit:RMB’0,000
| Typeofderivativefinancialinstrument | Beginningcontractualamount | Endingcontractualamount | Gain/lossinReportingPeriod | EndinginvestmentamountasapercentageoftheCompany’sendingnetassetvalue |
| Forwardforexcontract | 61,356.18 | 0 | -1,329.13 | 0% |
5.UseofFundsRaised
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
VISaleofMajorAssetsandEquityInterests
1.SaleofMajorAssets
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.SaleofMajorEquityInterests
√Applicable□Notapplicable
| Counterparty | Equityinterestssold | Dateofsale | Sellingprice(RMB’0,000) | AmountcontributedbytheequityintereststonetincomeoftheCompanyfromperiod-beginningtodateofsale(RMB’0,000) | EffectofthesaleontheCompany | AmountcontributedbythesaletonetincomeoftheCompanyasapercentageoftheCompany’snetincome(%) | Pricingprinciple | Related-partytransactionornot | RelationshipbetweencounterpartyandtheCompany | Ownershipfullytransferredornot | Executedasscheduledornot,ifnot,statereasonandactionstaken | Disclosuredate | Indextodisclosedinformation |
| ShenzhenMingfuInvestmentHoldingCo.,Ltd. | 15%equityofShenzhenKonkaE-displayCommercialDisplayCo.,Ltd. | 21June2019 | 3,750 | 80.73 | OptimizingtheCompany’sallocationofassets,increasi | 30.36% | Marketprice | Not | Notrelated | Yes | Yes | 12April2019 | http://www.cninfo.com.cn/new/index |
| ShenzhenOverseasChineseTownCapitalInvestmentManagementCo.,Lt | 51%equityofChuzhouKonkaTechnologyIndustrialDevelopmentCo.,Ltd. | 21June2019 | 6352.05 | -124.49 | ngassets’liquidity | 26.66% | Notlowerthanassessedvalue | Yes | Thesameactualcontroller | Yes | Yes | 11June2019 |
| ShanghaiOCTInvestmentDevelopmentCo.,Ltd. | 51%equityofChuzhouKonkaKangjinHealthIndustryDevelopmentCo.,Ltd. | 25September2019 | 12,225.43 | -192.26 | 62.68% | Notlowerthanassessedvalue | Yes | Thesameactualcontroller | Yes | Yes | 18September2019 | |
| HaimenRonghuiPropertiesCo.,Ltd. | 40%equityofHaimenKangjianTechnologyIndustrialParlOperationManagementCo.,Ltd. | 18December2019 | 20,000 | -519.78 | 78.29% | Marketprice | Not | Notrelated | Yes | Yes | 23October2019 |
| ChengduZhenchenEnterpriseManagementCo.,Ltd. | 51%equityofShenzhenKangyueEnterpriseCo.,Ltd. | 26December2019 | 3,570 | -257.61 | 14.88% | Marketprice | Not | Notrelated | Yes | Yes | 2November2019 |
VIIMajorSubsidiaries
√Applicable□NotapplicableMajorfully/majority-ownedsubsidiariesandthoseminority-ownedsubsidiarieswithanover10%effectontheCompany’snetprofit
Unit:RMB
| Name | RelationshipwiththeCompany | Principalactivity | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
| ChongqingKonkaTechnologyDevelopmentCo.,Ltd. | Subsidiary | R&D,saleandservicesofelectronicproducts | RMB120,000,000 | 502,174,095.15 | 449,227,312.77 | 0 | 439,007,575.48 | 329,227,312.77 |
| SuiningKonkaIndustrialParkDevelopmentCo.,Ltd. | Subsidiary | Industrialparkdevelopmentandconstruction,operationandmanagement | RMB200,000,000 | 567,943,253.90 | 514,730,217.49 | 0 | 419,913,415.05 | 314,730,217.49 |
| ShandongEconTechnologyCo.,Ltd.(Consolidated) | Subsidiary | Publicservice-watermanagement | RMB164,000,000 | 6,472,373,299.31 | 1,134,111,744.14 | 2,089,742,540.39 | 286,491,662.65 | 263,046,089.57 |
| DongguanKonkaElectronicCo.,Ltd. | Subsidiary | Productionandsaleofmultimediaproducts | RMB266,670,000 | 1,156,697,006.46 | 558,632,557.34 | 717,280,317.50 | 244,057,512.15 | 212,384,028.17 |
| AnhuiKonkaElectronicCo.,Ltd. | Subsidiary | Productionandsaleofmultimediaproducts | RMB140,000,000 | 1,894,880,139.35 | 604,187,672.32 | 2,563,263,261.84 | 189,970,888.01 | 207,921,829.24 |
| HongKongKonkaCo.,Ltd. | Subsidiary | Export&importofelectromechanicalandelectronics | HKD500,000 | 3,043,803,366.53 | 179,971,519.97 | 5,545,451,649.18 | 157,314,952.82 | 169,787,501.57 |
| KonkaElectricalAppliancesInvestment&DevelopmentCo.,Ltd. | Subsidiary | Investmentplatform | HKD500,000 | 469,276,938.82 | 103,260,122.51 | 0.00 | 98,230,082.63 | 90,482,643.64 |
| ShenzhenWankaidaScienceandTechnologyCo.,Ltd. | Subsidiary | Productionandsaleofmultimediaproducts | RMB10,000,000 | 148,665,698.26 | 136,692,637.94 | 102,998,520.00 | 99,966,098.28 | 85,881,709.46 |
| E2info | Subsidiary | Internetandrelatedservices | RMB20,174,070.81 | 341,930,825.08 | 191,539,650.62 | 291,410,136.24 | 91,318,044.28 | 79,018,550.58 |
| ChainKingdomMemoryTechnologiesCo.,Limited | Subsidiary | TheIndustryTradeBusiness | USD1,500,000 | 1,589,937,548.58 | 104,326,303.70 | 7,255,440,615.91 | 68,566,540.30 | 57,623,214.42 |
| KonkaElectricalAppliancesInternationalTradingCo.,Ltd. | Subsidiary | Export&importofelectromechanicalandelectronics | HKD500,000 | 1,220,213,065.54 | -155,129,693.33 | 1,429,811,363.50 | 48,291,790.04 | 48,291,790.04 |
SubsidiariesobtainedordisposedintheReportingPeriod:
√Applicable□Notapplicable
| Subsidiary | HowsubsidiarywasobtainedordisposedintheReportingPeriod | Effectsonoveralloperationsandoperatingperformance |
| ShenzhenKonkaShengxingEnterpriseCo.,Ltd. | Newlyestablished | BeneficialtothedevelopmentoftheCompany’srelevantbusiness |
| ShenzhenYouzhihuiTechnologyCo.,Ltd. | Newlyestablished | |
| SuiningKonkaElectronicTechnologicalInnovationCo.,Ltd. | Newlyestablished | |
| ShenzhenXiaojiaTechnologyCo.,Ltd. | Newlyestablished | |
| YibinKonkaSmartTechnologyCo.,Ltd. | Newlyestablished |
| KonkaHuanjia(Henan)EnvironmentalTechnologyCo.,Ltd. | Newlyestablished |
| LaizhouLairunSewageTreatmentCo.,Ltd. | Newlyestablished |
| FunanKangrunWaterCo.,Ltd. | Newlyestablished |
| HefeiYiheElectronicCo.,Ltd. | Newlyestablished |
| LushanKangrunEnvironmentManagementCo.,Ltd. | Newlyestablished |
| ChongqingKonkaTechnologyDevelopmentCo.,Ltd. | Newlyestablished |
| DongguanKonkaInvestmentCo.,Ltd. | Newlyestablished |
| WuhanRunyuanSewageTreatmentCo.,Ltd. | Newlyestablished |
| KanghaoTechnologyCo.,Ltd. | Newlyestablished |
| ChongqingKangxingruiEnvironmentalProtectionTechnologyCo.,Ltd. | Newlyestablished |
| ChongqingZhangmaoSemiconductorCo.,Ltd. | Newlyestablished |
| ShenzhenKonkaIndustrialParkDevelopmentCo.,Ltd. | Newlyestablished |
| ShenzhenKonkaChuangzhiElectricalApplianceCo.,Ltd. | Newlyestablished |
| Kanghong(Yantai)EnvironmentalProtectionTechnologyCo.,Ltd. | Newlyestablished |
| TongchuanKangrunHonghuiEnvironmentManagementCo.,Ltd. | Newlyestablished |
| KonkaNorthAmericaLLC | Newlyestablished |
| HaimenKonkaSmartTechnologyCo.,Ltd | Newlyestablished |
| BoxingCountyXingkangEnvironmentalProtectionTechnologyCo.,Ltd | Newlyestablished |
| ShenzhenKonkaHuiyingTechnologyCo.,Ltd. | Newlyestablished |
| ChongqingKonkaPhotoelectricTechnologyResearchInstituteCo.,Ltd. | Newlyestablished |
| ShenzhenKonkaZhitongTechnologyCo.,Ltd. | Newlyestablished |
| KonkaXinyingSemiconductorTechnology(Shenzhen)Co.,Ltd. | Newlyestablished |
| ChongqingKonkaHuiyingTechnologyCo.,Ltd. | Newlyestablished |
| Jiangkang(Shanghai)TechnologyCo.,Ltd. | Newlyestablished |
| E2info(Hainan)NetworkTechnologyCo.,Ltd. | Newlyestablished |
| ChongqingKonkaPropertiesDevelopmentCo.,Ltd. | Newlyestablished |
| Kanghong(Yantai)EnvironmentalProtectionTechnologyIndustrialParkCo.,Ltd. | Newlyestablished |
| ChongqingKonkaXingyiPropertiesCo.,Ltd. | Newlyestablished |
| ShenzhenKonkaKangxinTechnologyCo.,Ltd. | Newlyestablished |
| ChongqingKonkaFuzePropertiesCo.,Ltd. | Newlyestablished |
| SuiningJiarunPropertiesCo.,Ltd. | Newlyestablished |
| ShenzhenKonkaZhizaoTechnologyCo.,Ltd. | Newlyestablished |
| AnhuiKonkaJiadebaoNewMaterialTechnologyCo.,Ltd. | Newlyestablished |
| YuekangSemiconductorTechnology(Yantai)Co.,Ltd. | Newlyestablished |
| NingboKanghanruiElectricalAppliancesCo.,Ltd. | Newlyestablished |
| HenanFrestecSmartEcologicalElectricalApplianceCo.,Ltd. | Newlyestablished |
| HefeiChainKingdomMemoryTechnologiesCo.,Ltd. | Newlyestablished |
| ChengduKonkaSmartTechnologyCo.,Ltd. | Newlyestablished |
| ChengduKonkaElectronicsCo.,Ltd. | Newlyestablished |
| HubeiKangxinlongEnvironmentalProtectionCo.,Ltd. | Newlyestablished |
| TingyuanEnvironmentalProtectionTechnology(Shanghai)Co.,Ltd. | Newlyestablished | |
| ChuzhouKangxinHealthIndustryDevelopmentCo.,Ltd. | Newlyestablished | |
| YantaiKangyunIndustrialDevelopmentCo.,Ltd. | Newlyestablished | |
| YantaiLaikangIndustrialDevelopmentCo.,Ltd. | Newlyestablished | |
| ChuzhouKonkaTechnologyIndustryDevelopmentCo.,Ltd. | Transferpartialequity | Bringaboutgainswithlargeamount |
| ShenzhenKonkaE-displayCommercialDisplayCo.,Ltd. | Transferpartialequity | |
| ChuzhouKangjinHealthIndustryDevelopmentCo.,Ltd. | Transferpartialequity | |
| ShenzhenKangyueEnterpriseCo.,Ltd. | Transferpartialequity | |
| HaimenKangjianTechnologyIndustrialParkOperationsManagementCo.,Ltd. | Transferpartialequity | |
| YantaiKangyueInvestmentCo.,Ltd. | Transferpartialequity |
Informationaboutmajormajority-andminority-ownedsubsidiaries:
NoneVIIIStructuredBodiesControlledbytheCompany
□Applicable√NotapplicableIX.ProspectoftheCompany’sFutureDevelopmentIn2020,ascombingtheoperationsystemandenhancingthemanagementfoundation,alongthetargettobeaplatformcompanydrivenbyinnovation,theCompanystrengthenedtheriskcontrolwiththeguidanceofthedevelopmentstrategyofreform,transformationandupgrading,takingthehigh-qualitysustainabledevelopmentasthemainlinetoacceleratetherevitalizationofKonka.TheCompany’sworkplanfor2020isasfollows:
(I)AdvocatetheGathering-typeSynergyofExistingBusinessesIn2020,theCompanywillrelyonacoretopromotethesynergeticdevelopmentoffourmajorbusinessgroups,andthecoreinvolvesthefollowingcontent:
Thefirstisthesemiconductor.Asthesemiconductorbusinesscanbeappliedtotheintelligentterminalproductbusinessandexpandedtotheindustrialparkbusiness,itiscrucialfortheCompanytodevelopitscoretechnologyandcorecompetitiveness.Thesecondisthenewconsumerelectronics.TheCompanywillcontinuouslydeveloptheconsumerelectronicsbusinessandenrichitsconnotation,expandtootherrelatedbusinessandproductfieldsandformthenewconsumerelectronicsbusinesssystemandindustrialecology.
Thethirdisthetechnologypark.Thetechnologyparkbusiness,asanoperationandfeedingmode,servesasacarriertopromotethegrowthofnewconsumerelectronics,semiconductorandotherindustries.Guidedbythestrategyof“Technology+Industry+Park”,theCompanywillfocusasthecore“Semiconductor+NewConsumerElectronics+TechnologyPark”todrivethesynergeticdevelopmentoffourbusinessgroupsandrealizethegathering-typesynergeticdevelopment.(II)StrengthentheGrowthofExistingBusinessIn2020,theCompanywillhighlightandstrengthenthegrowthofexistingbusiness.Firstly,theCompanywillenhanceitscorecompetitivenessandmakesthescientificandtechnologicalinnovationbeitscorecompetitiveness;secondly,theCompanywillcontinuouslyenhanceitscapitalstrengthandefficiency;thirdly,theCompanywillpromotethetalentteamconstruction,andrelyonitsoutstandingbusinessteamandR&Dteamtodrivethehigh-qualitydevelopmentofvariousbusinesses.(III)TransformfromKonkaElectronicstoKonkaTechnologyIn2020,theCompanywillemphasizeandexpanditsbusinessestotheindustry’supstreamcorefields.Ononehand,theCompanywillstrengthentheproductR&Dandthecoretechnicalinnovationandpositivelypropelthenewtechnology’sindustrialtransformationtoenergizetheindustry;ontheotherhand,theCompanywillalsomakebreakthroughinitscorefields,keylinksandoriginaltechnologies,focusonMicroLED,semiconductorsandotherkeylinkstoconductthetechnologyR&D,andurgethetransformationofKonkaElectronicsintotheinnovation-drivennewindustrialoperationplatform-KonkaTechnology.(IV)MainWorksofVariousBusinessDivisions
1.IndustrialProductBusinessGroupTheMultimediaSub-division:in2020,themultimediasub-divisionwillcontinuedrivingthereformandinnovationofsalesindomesticmarket,increasetheinvestmentintotheexportsalesandtheonlinedomesticsales,urgethecapacitybuildingandorganizationreformbyoptimizingtheproductstructureandthecoststructureandcontinuouslyimproveitsbusinessperformance.TheWhiteGoodsSub-division:in2020,thewhitegooddub-divisionwillnotonlybroadentheproductcategorytocoverallproductcategoriesincludingairconditioners,refrigerators,freezers,washingmachines,coldchainsandkitchenappliances,butalsooptimizetheproductstructureandproducehigh-endproductstocreateitsfirst-classbrandimageandcapacity.Inaddition,basedontheKonka+FrestecElectricdualbrandoperation,itwillformthefull-chainandfull-channelsystemoperationcapacitycoveringrefrigerators,washingmachinesandairconditioners.TheEnvironmentalProtectionDivision:intermsoftherenewableresources,theCompanywillaccelerateitstransformationintothedisposalofscrappedcars;inlightofthewatertreatment,theCompanywillvigorouslydrivetheexistingproject’sefficientoperation,andbymeansofthe
continuousinnovation,itwillacceleratetheintegration,datamationandintellectualizationprocessofsewagetreatmentandrivercontrol,andfurtherrealizetheefficientimplementationofoperationmanagement;intermsofthenewmaterialssub-division,theCompanywillfurtherenhanceitsabilityinsellingproductsandcontinuouslydevelopnewproductapplicationscenarios.TheSemiconductorSub-division:theCompanywillstrengthenitsbusinessdevelopmentinstorage,photoelectricityandsemiconductorapplicationandservice.Meanwhile,theMicroLEDSub-divisionwillbreakthroughthetechnicalbottleneckandrealizethetechnicaltransformationandoutput;thestoragemaincontrolchipssub-divisionwillresearchanddevelopthenew-generationproductswhilevigorouslysellingexistingproducts.MobileInternetSub-division:themobileInternetSub-divisionwillfocusonmainproducts,continuouslyenlargeitsscareandpropeltheIntelligentCommunityand5Grouterbusinessbyseizingvariousopportunitiesposedbythe5GcommercialnetworkandInternetofThings.ThePCBSub-division:thePCBSub-divisionwillpositivelypromotetheexistingdivision’slarge-scalereorganizationandintegration,realizethecontinuousgrowthofthebusinessperformance,andlayafirmfoundationforthePCBSub-division’scapitalizedoperation.
2.TheTechnologyParkDivisionIn2020,thetechnologyparkdivisionwillhighlighttheinnovationofbusinessmodeandspeedupitsnationallayout.Firstly,thediversifiedbusinessformswillbeappliedtogathertheindustrialchain’supstreamanddownstreampartnerstoacceleratethedevelopmentandimplementationofnewprojectsincludingtheindustrialpark,headquarterseconomy,logisticspark,industrialtownandnewindustrialcityetc.;secondly,emphasiswillbeplacedonimprovingthetechnologypark’sconstructionandmanagementlevel,furtherperfectingthecommunicationmechanismwiththedesigninstitute,theconstructioncontractorandthesupervisor,establishingtheconstructionprojects’safetyorganizationstructureandresponsibilitysystemandenhancingthetechnologypark’sconstructionandmanagementlevel;thirdly,specialattentionwillbepaidtostrengthenthebusinessteam’sbusinessdevelopmentabilityandcustomerresourcesacquisitionability.
3.ThePlatformServiceDivisionIndustryandtradebusiness:first,theindustryandtradebusinesswillcontinuetopromotetheclosecombinationofexistingbusinessandentrustedprocessingbusinesstoformabusinessmodelofindustryandtradeintegration;second,theindustryandtradebusinesswillfurtherimproveandimprovetheriskcontrolmodel,upgradetheriskcontrolmodeloftheoriginalbusiness,promotetheestablishmentofriskcontrolconstructionofR&D,productionandsalessystem,andpreventandcontrolindustryincombinationwiththetransformationofchipbusinessandplasticbusinessBusinessrisk.TheInternetSub-division:in2020,theInternetSub-divisionwillmaketheusersmorediversified,andseeknewresourcesfromvariousaspectsincluding5G+UHDandAI+IoTetc.soastopromote
thedevelopmentofthefamilyInternetvalue-addedservicesandcompletethelayoutofInternetofThingsandSmartHomebusiness.
4.TheFinancialInvestmentDivisionTheInvestmentSub-division:in2020,onthepremisethatpossibleinvestmentrisksarestrictlycontrolled,theinvestmentdivisionwillemphasizethelayoutofthesemiconductor,5G,advancedmanufacturingandelectronicinformationindustrialchainupstreamanddownstream,upgradeandoptimizetheCompany’sexistingindustrybymeansofindustrialM&A,strategicjointventure,equityinvestmentandindustryfundsandassisttheCompanytorealizethegoalofhigh-qualitydevelopmentheartandsoul.TheVentureCapitalInvestmentSub-division:in2020,whiletheventurecapitalinvestmentsub-divisionisvigorouslyoperatingtheestablishedinnovationcenter,itwillfocusontheinnovationofbusinessmode,especiallytheprofit-makingmode,andcontinueincubatingvariousenterprises.XCommunicationswiththeInvestmentCommunitysuchasResearches,InquiriesandInterviews
1.DuringtheReportingPeriod
√Applicable□Notapplicable
| Date | Wayofcommunication | Typeofcommunicationparty | Indextomaininformationcommunicated | |
| 7May2019 | One-on-onemeeting | Institution | http://www.cninfo.com.cn/new/index | |
| 27May2019 | One-on-onemeeting | Institution | ||
| 6June2019 | One-on-onemeeting | Institution | ||
| 28June2019 | One-on-onemeeting | Institution | ||
| 3July2019 | One-on-onemeeting | Institution | ||
| 17July2019 | One-on-onemeeting | Institution | ||
| 20August2019 | One-on-onemeeting | Institution | ||
| 11September2019 | One-on-onemeeting | Institution | ||
| 26December2019 | One-on-onemeeting | Institution | ||
| Timesofcommunications | 9 | |||
| Numberofinstitutionscommunicatedwith | 19 | |||
| Numberofindividualscommunicatedwith | 0 | |||
| Numberofothercommunicationparties | 0 | |||
| Tip-offsorleakagesofsubstantialsupposedly-confidentialinformationduringcommunications | None | |||
PartVSignificantEvents
IProfitDistributionstoOrdinaryShareholders(intheFormofCashand/orStock)Howtheprofitdistributionpolicy,especiallythecashdividendpolicy,forordinaryshareholderswasformulated,executedorrevisedintheReportingPeriod:
√Applicable□NotapplicableThecashdividendpolicyoftheCompanywasclearlystatedinitsArticlesofAssociation,withspecificandcleardividendstandardsandratios.Therelevantdecision-makingprocedureandmechanismweresound;theindependentdirectorsfaithfullyperformedtheirdutiesandplayedtheirduerole;andthenon-controllinginterestswereabletofullyexpresstheiropinionanddesireandtheirlegalrightsandinterestswerefullyprotected.TheCompanystrictlyfollowedthecashdividendpolicyinitsArticlesofAssociation,andthecashdividendpayoutoftheCompanywasinlinewithitsArticlesofAssociationandtherelevantresolutionoftheShareholders’Meeting.AccordingtotherequirementsoftheListedCompanySupervisionGuidelineNo.3-ListedCompanies’CashDividendissuedbytheCSRC,theCompanyhasrevisedthedividendpayoutpolicyinitsArticlesofAssociation,furtherclarifyingthepriorityandproportionofcashdividendindividendpayouts.Inordertofurthernormalizeitsshareholderreturnmechanism,pushforwardtheestablishmentofascientific,sustainedandstableshareholderreturnmechanism,enhancethetransparencyandoperabilityofdecision-makingforitsdividendpayoutpolicy,andeffectivelyprotectthelegalrightsandinterestsofpublicinvestors,theCompanystrictlyfollowedtheShareholderReturnPlanningforSubsequentThreeYears(2019-2021),whichwasformulatedin2019.
| Specialstatementaboutthecashdividendpolicy | |
| IncompliancewiththeCompany’sArticlesofAssociationandresolutionofgeneralmeeting | Yes |
| Specificandcleardividendstandardandratio | Yes |
| Completedecision-makingprocedureandmechanism | Yes |
| Independentdirectorsfaithfullyperformedtheirdutiesandplayedtheirduerole | Yes |
| Non-controllinginterestsareabletofullyexpresstheiropinionanddesireandtheirlegalrightsandinterestsarefullyprotected | Yes |
| Incaseofadjustingorchangingthecashdividendpolicy,theconditionsandproceduresinvolvedareincompliancewithapplicableregulationsandtransparent | Yes |
Theprofitdistributionstoordinaryshareholders,eitherintheformofcashorstock,inthepastthreeyears(includingtheReportingPeriod)aresummarizedasfollows:
1.DividendPayoutPlanfor2019
Basedonthetotalsharesof2,407,945,408asoftheendof2019,acashdividendofRMB0.5(taxinclusive)per10shareswasplannedtobedistributedtoalltheshareholders,withthetotaldividendpayoutreachingRMB120,397,270.40.Andtheretainedearningsshouldcarryforwardforfuturepayoutwithoutbonusissuefromcapitalreservesandprofit.
2.DividendPayoutPlanfor2018Basedonthetotalsharesof2,407,945,408asoftheendof2018,acashdividendofRMB1.00(taxinclusive)per10shareswasplannedtobedistributedtoalltheshareholders,withthetotaldividendpayoutreachingRMB240,794,540.80.Andtheretainedearningsshouldcarryforwardforfuturepayoutwithoutbonusissuefromcapitalreservesandprofit.
3.DividendPayoutPlanfor2017Basedonthetotalsharesof2,407,945,408asoftheendof2017,acashdividendofRMB1.62(taxinclusive)per10shareswasdistributedtoalltheshareholders,withthetotaldividendpayoutreachingRMB390,087,156.10.Andtheretainedearningsshouldcarryforwardforfuturepayoutwithoutbonusissuefromcapitalreservesandprofit.Cashdividendforordinaryshareholdersinthepastthreeyears(includingtheReportingPeriod)
Unit:RMB
| Year | Cashdividends(taxinclusive)(A) | Netprofitattributabletoordinaryshareholdersofthelistedcompanyinconsolidatedstatementsfortheyear(B) | Aas%ofB(%) | Cashdividendsinotherforms(suchassharerepurchase)(C) | Cas%ofB(%) | Totalcashdividends(includingthoseinotherforms)(D) | Das%ofB(%) |
| 2019 | 120,397,270.40 | 212,034,210.08 | 56.78% | 0 | 0.00% | 120,397,270.40 | 56.78% |
| 2018 | 240,794,540.80 | 411,289,744.68 | 58.55% | 0 | 0.00% | 240,794,540.80 | 58.55% |
| 2017 | 390,087,156.10 | 5,057,025,155.71 | 7.71% | 0 | 0.00% | 390,087,156.10 | 7.71% |
IndicatebytickmarkwhethertheCompanyfailstoputforwardacashdividendproposalfortheordinaryshareholdersdespitethefactsthattheCompanyhasmadeprofitsintheReportingPeriodandtheprofitsoftheCompanyastheparentdistributabletotheordinaryshareholdersarepositive.
□Applicable√NotapplicableIIFinalDividendPlanfortheReportingPeriod
√Applicable□Notapplicable
| Sharedividendper10sharesfromretainedearnings(share) | 0 |
| Cashdividendper10shares(RMB)(taxinclusive) | 0.50 |
| Sharedividendper10sharesfromcapitalreserves(share) | 0 |
| Sharebase(share) | 2,407,945,408 |
| Totalcashdividends(RMB)(taxinclusive) | 120,397,270.40 |
| Cashdividendsinotherways(suchassharerepurchase)(RMB) | 0.00 |
| Totalcashdividends(includingotherways)(RMB) | 120,397,270.40 |
| Distributableprofits(RMB) | 212,034,210.08 |
| Cashdividendsasapercentageoftotalprofitstobedistributed(%) | 100% |
| DetailsofcashdividendfortheReportingPeriod | |
| Theminimumproportionofcashdividendtothisprofitdistributionshouldbe80%whentheCompanydistributedtheprofitsundertheconditionthattheCompanywasinmaturestagewithlargecapitalcost. | |
| Detailsofplanforprofitdistributionorbonusissuefromcapitalreserves | |
| TheauditednetprofitattributabletoownersoftheCompanyastheparentin2019wasRMB212,034,210.08,retainedearningswereRMB4,239,763,606.89.Inaccordancewithrelevantlawsandregulations,provisionsofArticlesofAssociationsanddemandoftheCompanyforsustainabledevelopment,theCompanydidn’twithdrewstatutorysurplusreserveanddiscretionaryreserve,andtheprofitdistributionplanwassupposedtobeasfollows:basedonthetotalsharesof2,407,945,408asoftheendof2019,acashdividendofRMB0.50(taxinclusive)per10shareswasdistributedtoalltheshareholders,withthetotaldividendpayoutexpectedreachingRMB120,397,270.40.Andtheretainedearningsshouldcarryforwardforfuturepayoutwithoutbonusissuefromcapitalreservesandprofit.IfthesharecapitalchangedaftertheBoardofdirectorsreviewedtheprofitdistributionplan,thecashdividendpershareshallbeadjustedintheprincipleoftheunchangedtotaldistributionamount. | |
IIIFulfillmentofCommitments
1.CommitmentsoftheCompany’sActualController,Shareholders,RelatedPartiesandAcquirers,aswellastheCompanyItselfandotherEntitiesFulfilledintheReportingPeriodorOngoingatthePeriod-end
√Applicable□Notapplicable
| Commitment | Promisor | Typeofcommitment | Detailsofcommitment | Dateofcommitmentmaking | Termofcommitment | Fulfillment |
| Commitment | OverseasChineseTown | Othercommitment | TheCompanyandothercompaniesunderthecontroloftheCompanyandpersonsactinginconcerthavenosharereductionplanduringtheperiodfromsixmonthsbeforethePrivatePlacementBoardMeeting(28September2018)tothe | 28September | 1July2020 | Ongoing |
| madeinIPOorrefinancing | EnterprisesCo. | issuancedateofthecommitment.Toavoidtheshort-swingtradingstipulatedintheSecuritiesLaw,theCompanyandothercompaniesunderthecontroloftheCompanyandpersonsactinginconcertdon’treducethesharesofKonkadirectlyorindirectlyduringtheperiodfromsixmonthsbeforethePrivatePlacementBoardMeeting(28September2018)tosixmonthsafterthecompletionofshareissue. | 2018 | |||
| OverseasChineseTownEnterprisesCo. | Othercommitment | IfKonkaGroupanditsmajority-ownedsubsidiariesaresubjecttoanyadministrativepunishmentorinvestigatedduetoanyrealestate-relatedillegalactswithintheReportingPeriodincludingtheundisclosedidleland,thelandspeculation,thepropertyhoardingandthehousingpricegougingetc.,whichhascausedanylossestothelistedcompanyortheinvestor,theCompanywillburdencorrespondingliabilitiesforcompensationaccordingtorelevantlaws,regulationsandprovisionsissuedbythesecuritiesmarketsupervisiondepartment. | 13May2019 | 31December9999 | Ongoing | |
| OverseasChineseTownEnterprisesCo. | Commitmentsonhorizontalcompetition,related-partytransactionandcapitaloccupation | 1.CompaniesexcludingKonkaGroupandvarioussubsidiariesundertheCompany’scontrol(hereinafterreferredtoas“OtherCompanies”)willmaximallyreduceandavoidanyrelatedtransactionwiththeKonkaGroup,andshallneithertakeadvantageofitsstatusasKonkaGroup’scontrollingshareholdertoseekanyimproperprivilegeandillegitimaterightsuperiorthananythirdpartyonthemarketintheaspectofbusinesscooperationwithKonkaGroup,nortoobtainthepriorityinconcludinganytransactionwithKonkaGroup.2.Ifanynecessarytransactioncannotbeavoided,theCompanyandothercompaniesundertheCompany’scontrolwilllegallysigncorrespondingagreementwithKonkaGroupaccordingtosuchprinciplesasfairness,objectivenessandvaluablecompensation,fulfillvariouslegalproceduresandperformtheirobligationininformationdisclosureandrelevantinternaldecisionmakingandapprovalproceduresaccordingtoapplicablelaws,regulationsandtheArticlesofAssociationsoastoguaranteethefairnessoftherelatedtransactionprice.However,theyshallnottakeadvantageofsuchtransactiontotakeanyactwhichwilldamagethelegitimateinterestsofKonkaGroupandthegroup’sothershareholders.3.TheCompanywillfulfillitsdueobligationsasKonkaGroup’scontrollingshareholderbasedongoodfaith,fullyrespectKonkaGroup’sstatusofanindependentlegalpersonandguaranteeitsindependentmanagementanddecisionmaking.Meanwhile,theCompanyguaranteesthat,itwillattendtheGeneralMeetingaccordingtotheArticlesofAssociation,equallyexercisevariousrightsandburdendueobligations,andrestrainitselffromseekinganyillegitimateinterestsinthenameoftheGroup’scontrollingshareholderandillegallytransferringanycapitalandprofitofKonkaGroupanditscontrolledsubsidiariesbytakingadvantageofanyrelatedtransaction.Inaddition,theCompanycommitsnottodamageanylegitimaterightsandinterestsofKonkaGroupandothershareholders.4.IftheCompanybreakstheabove-mentionedpromiseandguarantee,itshallcompensateanylossessufferedbyKonkaGroupanditsinvestorsforthisreason. | 28March2019 | 31December9999 | Ongoing | |
| OverseasChinese | Commitment | 1.Asoftheissuancedateoftheletterofcommitment,theCompanyneitherdirectlyorindirectlyinvolvesinanybusinesscompetingwithKonkaGroup’smainbusiness,nordirectlyorindirectlycarryonanybusinesscompetingwith | 28March | 31Dece | Ongoing |
| TownEnterprisesCo. | sonhorizontalcompetition,related-partytransactionandcapitaloccupation | KonkaGroup’smainbusinessbyholdinganysharesorcontrollinganythirdparty.2.IftheexistingbusinessoftheCompanyandcompaniesexcludingKonkaGroupandvarioussubsidiariesundertheCompany’scontrol(hereinafterreferredtoas“OtherCompanies”)competeswiththeKonkaGroup’smainbusinessorothercompanies’businessdevelopmentcompeteswithKonkaGroup’smainbusinessduringtheCompany’sservingastheKonkaGroup’scontrollingshareholder,theCompanyandothercompaniesundertheCompany’scontrolshall(includingbutnotlimitedto)ceasesuchbusinessoperationorintegratesuchcompetingbusinessintoKonkaGrouportransferitotherirrelevantthirdparties,preventingtheCompanyandothercompaniesunderitscontrolfrominvolvinginanybusinesscompetingwithKonkaGroup’smainbusiness.IfanybusinessopportunityobtainedfromanythirdpartysubstantiallyorpossiblycompeteswithKonkaGroup’smainbusiness,theCompanywillimmediatelyinformKonkaGroupofthatandtransfersuchbusinessopportunitytoKonkaGroupunlessoneofthefollowingconditionsismet:(1)suchbusinessopportunityisadministrativelytransferredtoorassignedtotheCompanyandothercompaniesunderitscontrolbythegovernmentbasedonthedirectionalagreementaccordingtoapplicablenationallaws,regulationsandpolicies;or(2)KonkaGroupfailstomeetspecialrequirementspositionedtothebidderortheassigneeincorrespondingprojectbidding,transferandassignmentconditions,buttheCompanyorothercompaniesunderitscontroldoes.3.IfKonkaGroupgivesuptheabove-mentionedbusinessopportunityandtheCompanyandothercompaniesundertheCompany’scontroltakeadvantageofsuchopportunitytoconductanybusinesssubstantiallyorpossiblycompetingwiththeKonkaGroup’smainbusiness,theCompanywillgiveKonkaGroupanyoption.Namely,ifpermittedbyapplicablelawsandregulationsandrelevantprovisionsstatedintheArticlesofAssociation,KonkaGroupshallhavetherighttocompletelyorgraduallypurchaseanyequity,assetsandotherinterestsrelatedtotheabove-mentionedbusinessfromtheCompanyandothercompaniesundertheCompany’scontrol,orKonkaGroupshallownoractuallycontrolcorrespondingassetsorbusinessobtainedbytheCompanyandothercompaniestheCompany’scontrolfromtheabove-mentionedbusinessbymeansofentrustedoperation,leaseorcontractoperationaccordingtoapplicablenationallawsandregulations.Ifthethirdpartyonanequalfootinghastherighttoexecuteandwillexecuteitslegalpreemptiveright,theabove-mentionedcommitmentshallnotapply.However,inthiscase,theCompanyandothercompaniesundertheCompany’scontrolshalltrytheirbesttopromptthethirdpartytogiveupsuchpreemptiveright.4.TheCompanyshallconfirmthateachcommitmentmadehereinconstitutesanindependentexecutablecommitment,andanycommitment’sineffectivenessorterminationwillnotinfluencethevalidityofothercommitments;ifanyoftheabove-mentionedcommitmentsandguaranteesisviolated,theCompanyiswillingtoburdenallresultingeconomiclossessufferedbyKonkaGroup. | 2019 | mber9999 | |
| OverseasChineseTownEnterprisesCo. | Othercommitment | I.KonkaGroup’spersonnelshallbekeptindependent.1.It’srequiredthattheKonkaGroup’sseniormanagersshallexclusivelyworkforandreceivecompensationfromKonkaGroup,andshallnotholdotherpostsotherthandirectorsandsupervisorsinothercompaniesexcludingKonkaGroupandvarioussubsidiariesundertheCompany’scontrol(hereinafterreferredtoas“OtherCompanies”).2.It’sguaranteedthatKonkaGroup’sHRrelationsandlaborrelationsindependentoftheCompanyandothercompaniesundertheCompany’scontrol.3.It’sguaranteedthatallcandidatesrecommendedbytheCompanytoserveasKonkaGroup’sdirectors,supervisorsandseniormanagersaresubjecttolegalprocedures,andtheCompanyshallnotinterfereanydecisiononpersonnelappointmentandremovalmadebyKonkaGroup’sBoardofDirectorsandShareholder’sMeeting.II.KonkaGroup’sfinanceshallbekeptindependent.1.KonkaGroupanditscontrolledsubsidiariesshallestablishtheirindependentfinancialaccountingdepartment,financialcalculationsystemandfinancialmanagementsystem.2.ItshallbeguaranteedthatKonkaGroupandits | 28March2019 | 31December9999 | Ongoing |
| subsidiariescouldmakeindependentfinancialdecisionsandwouldnotinterfereKonkaGroup’suseoffunds.ThecapitalofKonkaGroupanditssubsidiariesshallnotbeoccupiedbytheCompanyandothercompaniesundertheCompany’scontrolbymeansofborrowing,debtrepayment,advancepaymentorinotherwayswiththeirrightsandinterestsnotseriouslydamagedbytheCompanyandothercompaniesundertheCompany’scontrol.3.TheKonkaGroupanditssubsidiariesshallindependentlyopentheiraccountsinthebank,andshallnotsharethesamebankaccountwiththeCompanyandothercompaniesundertheCompany’scontrol.4.KonkaGroupanditssubsidiariesshalllegallyandindependentlypaytaxes.III.TheKonkaGroup’sinstitutionalindependenceshallbekept.1.TheKonkaGroupanditssubsidiariesshalllegallyestablishandperfecttheircorporategovernancestructure,setuptheirindependentandcompleteinstitutionalframework,andcompletelyseparatefromtheCompanyandothercompaniesundertheCompany’scontrol.Namely,theKonkaGroupanditssubsidiariesandtheCompanyandothercompaniesundertheCompany’scontrolshallrespectivelyestablishtheirownofficesandbusinessoperationsites.2.It’sguaranteedthattheKonkaGroupanditssubsidiariescouldoperateindependently,andtheCompanywouldnotbypasstheShareholder’sMeetingtodirectlyorindirectlyinterfereKonkaGroup’sdecisionmakingandbusinessoperation.IV.KonkaGroupshallkeepitsassetsindependentandcomplete.1.KonkaGroupanditssubsidiariesshallpossesscompleteoperatingassets.2.It’sguaranteedthatthecapital,assetsandotherresourcesofKonkaGroupanditssubsidiarieswouldnotbeillegallyoccupied.V.TheKonkaGroupshallguaranteeitsbusinessindependence.1.Afterthisissue,KonkaGroupshallpossesscorrespondingassets,personnelandqualificationforindependentlycarryoutbusinessoperationsandtheabilityofindependentmanagementbasedonthemarketwithoutrelyingontheCompanyandothercompaniesundertheCompany’scontrol.2.TheCompanyandothercompaniesundertheCompany’scontrolshallavoidanyhorizontalcompetitionwithKonkaGroup’smainbusiness.3.Variousrelatedtransactionsshallbestrictlycontrolled,andcorrespondingcontinuousrelatedtransactionmustbereducedbetweentheKonkaGroupanditssubsidiariesandtheCompanyanditsaffiliatedcompanies.It’snotallowedtoillegallyoccupytheCompany’sassetsandfunds.However,anyunavoidablerelatedtransactionswillbepricedbasedonsuchprinciplesasFairness,JusticeandOpenness.Meanwhile,foranysignificantrelatedtransaction,it’srequiredtofulfillcorrespondinginformationdisclosureobligation,completerelevantapprovalproceduresanddiscloserelatedinformationaccordingtoKonkaGroup’sArticlesofAssociationandapplicablelawsandregulations.4.ItisnotallowedtointerfereanymajordecisionmadebytheKonkaGroupandaffecttheindependenceofKonkaGroup’sassets,personnel,finance,institutionandbusinessviaindependentoperationoractinconcertinanywayotherthantheexecutionofshareholder’sright. | |||||
| OverseasChineseTownEnterprisesCo. | Othercommitment | 1.It’snotallowedtointerferetheoperationandmanagementactivitiesoftheCompanyexcessively;2.It’snotallowedtoencroachtheinterestoftheCompany;3.Duringtheperiodfromtheissuancedateofthecommitmenttothecompletion,ifChinaSecuritiesRegulatoryCommission(hereinafterreferredtoas“CSRC”)publishesanynewregulatoryprovisionsonsuchcompensationandrewardmeasuresandtheabove-mentionedcommitmentsarenotinconformitywithsuchprovisions,theCompanywillmakeasupplementarycommitmentthenaccordingtothelatestprovisionsissuedbyCSRC.4.TheCompanyearnestlypromisestoadheretovariouscompensationsandrewardpoliciesestablishedbytheCompanyandmakecorrespondingpromises;iftheCompanybreakssuchpromisesandcauseanylossestotheCompanyortheinvestor,theCompanyiswillingtolegallycompensateanylossessufferedbytheCompanyortheinvestorduetotheviolationagainstsuchcommitment. | 28March2019 | 31December2020 | Ongoing |
| ShenzhenOverseas | Othercommi | 1.TherestrictedstocktradeperiodofKonkaGroupsubscribedbytheCompanyis36months.Namely,thestocksubscribedbytheCompanyshallnotbe | 28Febru | 31Dece | Ongoing |
| ChineseTownCapitalInvestmentManagementCo.,Ltd. | tment | transferredwithin36monthsfromtheendofthedayofthisissue(calculatingfromthedaywhentheadditionalissueofstocksobtainedisregisteredinthenameoftheCompanyandthesamebelow);allstocksderivedfromanystocksobtainedbytheCompanyduringthisissue(includingnewstocksobtainedbydistributingstockdividendsandaddingthecapitalreserveintothecapitalstock)shallalsobesubjecttotheabove-mentionedlock-uparrangement.Aftertheabove-mentionedlock-upperiodexpires,thetransferandtransactionofcorrespondingstocksshallbeperformedaccordingtothetheneffectivelaws,regulationsandvariousrules,provisionsandrequirementsputforwardbyChinaSecuritiesRegulatoryCommission(hereinafterreferredtoas“CSRC”)andShenzhenStockExchange(hereinafterreferredtoas“SSE”).2.Beforethisissue,allstocksheldbytheCompanyandthepersonsactinginconcertfromKonkaGroupshallbelockedupfor12monthsfromtheendofthedayofthisissue.StocksheldbytheCompanyandthepersonsactinginconcertfromKonkaGroupbeforethisissuecorrespondtoadditionalstocksheldinKonkaGroupduetothedistributionofdividendsandtheconversionintosharecapital,whichshallalsobesubjecttotheabove-mentionedagreement. | ary2019 | mber2022 | |
| ShenzhenOverseasChineseTownCapitalInvestmentManagementCo.,Ltd. | Othercommitment | I.TheCompanyislegallyestablishedandexistsvalidlyaccordingtoapplicableChineselawsandregulationswithfullcapacityforcivilrightsandcivilconduct,possessescorrespondingqualificationforsubscribingstocksissuedbyKonkaGroupasstipulatedinChineselaws,administrativelawsandregulations,departmentalregulationsandnormativedocuments,andhasobtainedalldueinternalapprovalsorlicensesforsubscribingthisissueofstocks.II.TheCompanyshallnotinvolveinanyofthefollowingsituations:1.theCompanydamagesthelegitimaterightsandinterestsofKonkaGroupanditsshareholdersduringthesubscriptionofstocksfromKonkaGroup;2.theCompanyisencumberedwitharelativelylargeamountofoutstandingdebts;3.theCompanyhasanysevereunlawfulactorisasuspectofanysevereunlawfulactintherecent3years;4.theCompanyhasanyseveredishonestconductonthestockmarketintherecent3years;5.anysituationunderwhichthesubscriptionofthelistedcompany’sstocksisnotallowedaccordingtoapplicablelaws,administrativeregulationsandvariousprovisionsissuedbyCSRC.III.TheCompany,theCompany’sdirectors,supervisorsandseniormanagers(orkeypersonnel)arenotsubjecttoanyadministrativepunishment(exceptthoseobviouslyirrelevanttothestockmarket),criminalpunishmentoranymajorcivilactionrelatedtoanyeconomicdisputesintherecent5years,andanymajorcivilarbitrationrelatedtoanyeconomicdisputesintherecent5yearsisconcluded.IV.Afterthissubscription,anybusinessconductedbytheCompanyshallnotcompetewithorpotentiallycompetewiththatofKonkaGroup.V.Within24monthsbeforeKonkaGroup’sdisclosureofthisstockissueplan,allmajortransactionsbetweentheCompanyandKonkaGroupshallbesubjecttoallnecessarydecision-makingproceduresaccordingtovariousprovisionsgearedtotherelatedtransaction,andcorrespondinginformationisdisclosed.SuchrelatedtransactionisconductedfortheneedofnormalbusinessdevelopmentofKonka | 28March2019 | 31December2022 | Ongoing |
| GroupwithoutdamagingtheinterestsofKonkaGroupandothershareholders.VI.ThissubscriptionmadebytheCompanyshallbaseoncorrespondinganalysisandjudgmentonthestocktrademarket,andtheCompanyhasagoodvisiononKonkaGroup’sdevelopmentprospectandinvestmentvalue.VII.VariousstockssubscribedduringthisissueshallbecompletelyanddirectlyownedbytheCompanywithoutanyentrustmentortrustorothersimilararrangementsbyanymeans.VIII.TheCompany’sfundsforthissubscriptionshallbeitslegalself-ownedfundsorself-raisedfunds,andtheCompanypromisesthat,afterthisissuebyKonkaGroupisapprovedbyCSRCandthenoticeonthestocksubscriptionpaymentissentbyKonkaGroup,theCompanywouldtransferthefullstocksubscriptionpaymentintothedesignatedfundssupervisionbankaccountaccordingtoConditionalNon-publicIssueofStocksSubscriptionAgreementanditssupplementaryagreement.IX.TheCompany’ssoleshareholderisOCTGroupCo.,Ltd.,andactualcontrolleristheState-ownedAssetsSupervisionandAdministrationCommissionoftheStateCouncil.ForanycontributionbytheCompany’sshareholders,anygradedincomeandstructuredarrangementshallneitherbeapplied,noranyleveragefinancingstructureddesignproduct.X.TheCompanywillprovideKonkaGroupwithvariousinformationrelatedtothissubscription,andguaranteethatallprovidedinformationaretrue,correctandcomplete.XI.TheCompanyshallguaranteenottotransferanysubscribedstockwithintherestrictedstocktransferperiodasstipulatedinapplicablelaws,administrativeregulationsandvariousprovisionsissuedbyCSRCfromtheendofthedayofsubscription. | |||||
| ShenzhenOverseasChineseTownCapitalInvestmentManagementCo.,Ltd. | Othercommitment | 1.It’sallowedneithertoconveyanyinteresttootherunitsorindividualsfreeofchargeorinanunfairway,nortodamagetheCompany’sinterestinotherways;2.It’srequiredtorestrainmyposition-relatedconsumptionbehavior;3.It’snotallowedtoconductanyinvestmentandconsumptionactivitiesirrelevanttomyexecutionofdutybyusingtheCompany’sassets;4.TheremunerationsystemestablishedbytheBoardofDirectorsortheremunerationandappraisalcommitteeshallbelinkedupwiththeCompany’simplementationofcompensationandrewardmeasures;5.IftheCompanyexecutestheequity-basedincentives,thevestingconditionsoftheproposedequity-basedincentivesshallcorrespondwiththeCompany’simplementationofcompensationandrewardmeasures;6.FromthedayofissuingtheLetterofCommitmenttotheissue,ifChinaSecuritiesRegulatoryCommission(hereinafterreferredtoas“CSRC”)publishesanynewregulatoryprovisionsonsuchcompensationandrewardmeasuresandtheabove-mentionedcommitmentsarenotinconformitywithsuchprovisions,IwillmakeasupplementarycommitmentthenaccordingtothelatestprovisionsissuedbyCSRC.7.IearnestlypromisetoadheretovariouscompensationandrewardpoliciesestablishedbytheCompanyandmakecorrespondingpromises;ifIbreaksuchpromisesandcauseanylossestotheCompanyortheinvestor,I’mwillingtolegallycompensateanylossessufferedbytheCompanyortheinvestorduetomyviolationagainstsuchcommitment. | 28March2019 | 31December2020 | Ongoing |
| Shenzhen | Other | IfKonkaGroupanditsholdingsubsidiariesaresubjecttoanyadministrative | 13 | 31 | Ong |
| OverseasChineseTownCapitalInvestmentManagementCo.,Ltd. | commitment | punishmentorinvestigatedduetoanyrealestate-relatedillegalactswithintheReportingPeriodincludingtheundisclosedidleland,thelandspeculation,thepropertyhoardingandthehousingpricegougingetc.,whichhascausedanylossestothelistedcompanyortheinvestor,theCompanywillburdencorrespondingliabilitiesforcompensationaccordingtorelevantlaws,regulationsandprovisionsissuedbythesecuritiesmarketsupervisiondepartment. | May2019 | December9999 | oing | |
| Thedirectors,supervisorsandseniormanagersofKonkaGroupCo.,Ltd. | Othercommitment | 1.It’sallowedneithertoconveyanyinteresttootherunitsorindividualsfreeofchargeorinanunfairway,nortodamagetheCompany’sinterestinotherways;2.It’srequiredtorestrainmyposition-relatedconsumptionbehavior;3.It’snotallowedtoconductanyinvestmentandconsumptionactivitiesirrelevanttomyexecutionofdutybyusingtheCompany’sassets;4.TheremunerationsystemestablishedbytheBoardofDirectorsortheremunerationandappraisalcommitteeshallbelinkedupwiththeCompany’simplementationofcompensationandrewardmeasures;5.IftheCompanyexecutestheequity-basedincentives,thevestingconditionsoftheproposedequity-basedincentivesshallcorrespondwiththeCompany’simplementationofcompensationandrewardmeasures;6.FromthedayofissuingtheLetterofCommitmenttotheissue,ifChinaSecuritiesRegulatoryCommission(hereinafterreferredtoas“CSRC”)publishesanynewregulatoryprovisionsonsuchcompensationandrewardmeasuresandtheabove-mentionedcommitmentsarenotinconformitywithsuchprovisions,IwillmakeasupplementarycommitmentthenaccordingtothelatestprovisionsissuedbyCSRC.7.IearnestlypromisetoadheretovariouscompensationandrewardpoliciesestablishedbytheCompanyandmakecorrespondingpromises;ifIbreaksuchpromisesandcauseanylossestotheCompanyortheinvestor,I’mwillingtolegallycompensateanylossessufferedbytheCompanyortheinvestorduetomyviolationagainstsuchcommitment. | 28March2019 | 31December2020 | Ongoing | |
| ThedirectorsandseniormanagersofKonkaGroupCo.,Ltd. | Othercommitment | IfKonkaGroupanditsholdingsubsidiariesaresubjecttoanyadministrativepunishmentorinvestigatedduetoanyrealestate-relatedillegalactswithintheReportingPeriodincludingtheundisclosedidleland,thelandspeculation,thepropertyhoardingandthehousingpricegougingetc.,whichhascausedanylossestothelistedcompanyortheinvestor,theCompanywillburdencorrespondingliabilitiesforcompensationaccordingtorelevantlaws,regulationsandprovisionsissuedbythesecuritiesmarketsupervisiondepartment. | 13May2019 | 31December9999 | Ongoing | |
| Fulfillontimeornot | Yes | |||||
| Specificreasonsforfailingtofulfillcommitmentsontimeandplansfornextstep(ifany) | None | |||||
2.WheretherehadanearningsforecastforanassetorprojectandtheReportingPeriodwasstillwithintheforecastperiod,explainwhytheforecasthasbeenreachedfortheReportingPeriod.
□Applicable√Notapplicable
IVOccupationoftheCompany’sCapitalbytheControllingShareholderorItsRelatedPartiesforNon-OperatingPurposes
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.VExplanationsGivenbytheBoardofDirectors,theSupervisoryBoardandtheIndependentDirectors(ifany)RegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsoftheReportingPeriod
□Applicable√NotapplicableVIYoYChangestoAccountingPolicies,EstimatesandMethods
√Applicable□NotapplicableIn2017,theMinistryofFinancerevisedandreleasedtheaccountingstandardsrelatedtofinancialinstruments,includingASBENo.22-RecognitionandMeasurementofFinancialInstruments,ASBENo.23-TransferofFinancialAssets,ASBENo.24-HedgeAccountingandASBENo.37-PresentationofFinancialInstruments.Theabovefourfinancialinstruments(collectivelyreferredtoas“NewFinancialInstrumentsStandards”)requiretobeimplementedbyvariouslistedcompaniesinChinafrom1January2019on.Inaddition,theMinistryofFinanceissuedtheNoticeonPrintingandDistributingthe2018AnnualFinancialStatementsofGeneralEnterpriseson15June2018(CK[2018]No.15),indicatingthatvariousenterprisesimplementingASBEneedtopreparetheirfinancialstatementsinaccordancewiththesestandards.Afterthischange,theCompanywillimplementthenewfinancialinstrumentcriteriaandthenewfinancialstatementformatpublishedbytheMinistryofFinance.Forotherunchangedpartsexcepttheabove-mentionedaccountingpolicychange,theCompanywillcontinueimplementingtheAccountingStandardsforBusinessEnterprisesandvariousspecificaccountingstandards,ASBEApplicationGuide,ASBEInterpretationAnnouncementandotherrelevantprovisionspreviouslypublishedbytheMinistryofFinance.Accordingtothenewfinancialinstrumentstandards,theCompanywillregardthe“BusinessMode”ofthefinancialassetsheldbytheenterpriseandthe“financialassetscontractcashflowfeatures”asthejudgmentbasistoclassifyandmeasurethefinancialinstrument(includingthedepreciation),revisethefinancialassetsdepreciationaccountingtreatmentfrom“theincurredlossmethod”to“theexpectedlossmethod”.ThedifferencebetweentheoriginalbookvalueoffinancialinstrumentsandthenewbookvalueonthedayofimplementingthestandardsshallbeincludedintheRetainedIncomeorotherComprehensiveIncomeatthebeginningof2019withoutanysignificantinfluenceontheCompany’sfinancialcondition,businessperformanceandcashflow.VIIRetrospectiveRestatementsduetoCorrectionofMaterialAccountingErrorsintheReportingPeriod
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.VIIIYoYChangestotheScopeoftheConsolidatedFinancialStatements
□Applicable√NotapplicableRefertoPartIV-II-2-(6)fordetails.IXEngagementandDisengagementofIndependentAuditorCurrentindependentauditor:
| Nameofthedomesticindependentauditor | ShineWingCertifiedPublicAccountantsLLP |
| TheCompany’spaymenttothedomesticindependentauditor(RMB’0,000) | 349.8 |
| HowmanyconsecutiveyearsthedomesticindependentauditorhasprovidedauditservicefortheCompany | Oneyear |
| Namesofthecertifiedpublicaccountantsfromthedomesticindependentauditorwritingsignaturesontheauditor’sreport | GuoDongchao,LiuLihong |
| HowmanyconsecutiveyearsthecertifiedpublicaccountantshaveprovidedauditservicefortheCompany | Oneyear |
| Nameoftheoverseasindependentauditor(ifany) | N/A |
| TheCompany’spaymenttotheoverseasindependentauditor(RMB’0,000)(ifany) | N/A |
| HowmanyconsecutiveyearstheoverseasindependentauditorhasprovidedauditservicefortheCompany(ifany) | N/A |
| Namesofthecertifiedpublicaccountantsfromtheoverseasindependentauditorwritingsignaturesontheauditor’sreport(ifany) | N/A |
| HowmanyconsecutiveyearsthecertifiedpublicaccountantshaveprovidedauditservicefortheCompany(ifany) | N/A |
IndicatebytickmarkwhethertheindependentauditorwaschangedfortheReportingPeriod
□Yes√NoIndicatebytickmarkwhethertheindependentauditorwaschangedfortheauditperiod.
√Yes□NoIndicatebytickmarkwhethertheapprovalprocedurewasfulfilledtochangeindependentauditor.
√Yes□NoParticularsofreappointmentandchangesofindependentauditorTofurtheradapttotheneedsofoperationandbusinessdevelopmentoftheCompany,andensuretheobjectivityandindependenceoftheexternalauditinstitution,theCompanychangedtoappointShineWingCertifiedPublicAccountantsLLPasfinancialstatementsandinternalcontrolauditorin2019.Theformerauditinstitution,RuihuaCertifiedPublicAccountantsLLPadheredtotheprinciplesofindependentauditinthepractice,whichreflectedobjectivelyandfairlythefinancial
situationoftheCompany,fulfillingreliablytheobligationsastheauditinstitutionandpreservingthelegitimateinterestoftheCompanyandallshareholdersfromaprofessionalperspective.InviewofRuihuaCertifiedPublicAccountantsLLPofferingauditservicesforconsecutiveyears,andnowinordertofurtheradapttotheneedsofoperationandbusinessdevelopmentoftheCompany,andensuretheobjectivityandindependenceoftheexternalauditinstitution,theCompanychangedtoappointShineWingCertifiedPublicAccountantsLLPasfinancialstatementsadinternalcontrolauditorin2019.ShineWingCertifiedPublicAccountantsLLPhaspossessedthequalificationsoflicensetoengageinsecuritiesandfuturesbusiness,andtheexperienceandabilitytoofferauditservicesforlistedcompanies,whichcanprovidefairauditservicestotheCompany,meetingtherequirementsofauditingworkin2019.TherewasnoharmtotheinterestoftheCompanyandshareholdersbychangingtheauditingfirm.Independentauditor,financialadvisororsponsorengagedfortheauditofinternalcontrols:
√Applicable□NotapplicableTheCompanyappointedShineWingCertifiedPublicAccountantsLLPastheinternalcontrolauditorin2019withRMB0.6millionofpaymentfortheinternalcontrolaudit.XPossibilityofListingSuspensionorTerminationafterDisclosureofthisReport
□Applicable√NotapplicableXIInsolvencyandReorganization
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XIIMajorLegalMatters
√Applicable□Notapplicable
| Generalinformation | Involvedamount(RMB’0,000) | Provision | Progress | Decisionsandeffects | Executionofdecisions | Disclosuredate | Indextodisclosedinformation |
| Asmaturednoteswerefailedtobeaccepted,theCompanyhasfiledalawsuitwiththecourttorequestChinaEnergyElectricFuelCo.,Ltd.,ChinaEnergy(Shanghai)EnterpriseCo.,Ltd..,ShanghaiNengpingindustrialCo.,Ltd.,andShenzhenQianhaiBaoyingFactoringCo.,Ltd.topaythebillandthecorrespondinginteresttotheCompany. | 5,000 | Not | TheCompanyhaswonthecaseandthejudgmentwasineffect. | TheCompanywonthecase.Atpresent,itisintheexecutionstage.Basedontheprincipleofprudence,theCompanyhaswithdrawnrelevantimpairmentprovisionaccordingtoaccountingpolicies. | Thecourthasadoptedpropertypreservation,whicharecurrentlyintheimplementationstage.TheCompanyhasappliedforthecorrespondingshareholdertobetheadditionalrespondent. | 25June2019 | http://www.cninfo.com.cn/new/index |
| Asmaturednoteswerefailedtobeaccepted,theCompanyhasfiledalawsuitwiththecourttorequestShanghaiHuaxinInternationalGroupCo.,Ltd.andTianjinInternationalTradePetrochemicalCo.,Ltd.topaythebillandthecorrespondinginteresttotheCompany. | 5,000 | Not | Thefirsttrialisinsession,andawaitingjudgment.Thecourthasadoptedpropertypreservationmeasures. | Thecaseisawaitingjudgment.Basedontheprincipleofprudence,theCompanyhaswithdrawnrelevantimpairmentprovisionaccordingtoaccountingpolicies. | Pendingforjudgment |
| Asmaturednoteswerefailedtobeaccepted,theCompanyhasfiledalawsuitwiththecourttorequestShanghaiHuaxinInternationalGroupCo.,Ltd.QingdaoBondedZhongsheInternationalTradingCo.,Ltd.andShenzhenQianhaiBenniuAgriculturalTechnologyCo.,Ltd.topaythebillandthecorrespondinginteresttotheCompany. | 15,000 | Not | TheCompanyhaswonthecaseandthejudgmentwasineffect. | TheCompanywonthecase.Atpresent,itisintheexecutionstage.Basedontheprincipleofprudence,theCompanyhaswithdrawnrelevantimpairmentprovisionaccordingtoaccountingpolicies. | Thecourthasadoptedpropertypreservation,whicharecurrentlyintheimplementationstage. |
| Asmaturednoteswerefailedtobeaccepted,KonkaFactoringhasfiledalawsuitwiththecourttorequestTahoeGroupCo.,Ltd.,FuzhouTaijiaEnterpriseCo.,Ltd.,andXiamenLianchuangMicroelectronicsCo.,Ltd.topaythebillandthecorrespondinginteresttoKonkaFactoring. | 5,067.67 | Not | Thecourthasadoptedpropertypreservation.Thecaseisattrial. | Thecaseisawaitingjudgment.Basedontheprincipleofprudence,theCompanyhaswithdrawnrelevantimpairmentprovisionaccordingtoaccountingpolicies. | Pendingforjudgment |
| Asmaturednoteswerefailedtobeaccepted,KonkaFactoringhasfiledalawsuitwiththecourttorequestCCCCFirstHarborEngineeringCo.,Ltd.,TianjinGalaxyTradingCo.,Ltd.,ShenzhenGujinhongTradingCo.,Ltd.,ShanghaiTianweiInternationalTradingCo.,Ltd.,andShanghaiRunlinInternationalTradingCo.,Ltd.topaythebillandthecorrespondinginteresttoKonkaFactoring. | 3,620 | Not | Thecourtjudgedtodismissthesuit. | Thecourtjudgedtodismissthesuit.TheCompanyhaswithdrawnrelevantimpairmentprovisionaccordingtoaccountingpolicies. |
| Asmaturednoteswerefailedtobeaccepted,KonkaFactoringhasfiledalawsuitwiththecourttorequestCCCCFirstHarborEngineeringCo.,Ltd.,TianjinGalaxyTradingCo.,Ltd.,DongguanJufangTradingCo.,Ltd.,andWuhanJialianAgriculturalTechnologyDevelopmentCo.,Ltd.,topaythebillandthecorrespondinginteresttoKonkaFactoring. | 1,000 | Not | Thecourthasadoptedpropertypreservation.Thecaseisattrial. | Thecaseisawaitingjudgment.Basedontheprincipleofprudence,theCompanyhaswithdrawnrelevantimpairmentprovisionaccordingtoaccountingpolicies. | Pendingforjudgment |
| Asmaturednoteswerefailedtobeaccepted,theCompanyhasfiledalawsuitwiththecourttorequestHefeiHuajunTradingCo.,Ltd.andWuhanJialianAgriculturalTechnologyDevelopmentCo.,Ltd.topaythebillandthecorrespondinginteresttotheCompany. | 8,000 | Not | Thecaseisawaitingtrial.Thecourthasadoptedpropertypreservation. | Thecaseisawaitingtrial.Basedontheprincipleofprudence,theCompanyhaswithdrawnrelevantimpairmentprovisionaccordingtoaccountingpolicies. | Pendingfortrial |
| ThecustomerofHongKongKonka,H-BUSTERSAOPAULOINDUSTRIAECOMERCIOS.A(Brazil)wasinsolvent,andobtainedtheapprovalofthejudicialreorganizationapplicationofCotiaThirdCivilCourtoftheCourtofSaoPaulo,BrazilinMay2013.AsthecreditorofH-BUSTER,HongKongKonkafiledthedebtdeclarationdocuments,andinAugust2014,theamountconfirmedofdebtwasUSD2.78million. | 1,939.38 | Not | Therestructuringplanwasrejectedbythecreditors'meetingandthecaseisstillpending. | Thecaseisawaitingjudgment.Basedontheprincipleofprudence,theCompanyhaswithdrawnrelevantimpairmentprovisionaccordingtoaccountingpolicies. | Suitpending |
| DuetotheJiangxiXinxinJian’anEngineeringCo.,Ltd.(hereinafterreferredtoasthe“JiangxiXinxin”),JiangxiShanshiTechnologyDevelopmentCo.,Ltd.(hereinafterreferredtoasthe“JiangxiShanshi”),JiangxiZhongyiDecorationMaterialsCo.,Ltd.(hereinafterreferredtoasthe“JiangxiZhongyi”)failedtorepaytheloananditsinterestofChinaGreatWallAMCJiangxiBranch(hereinafterreferredtoasthe“GreatWallJiangxiBranch”),theGreatWallJiangxiBranchsuedtothecourt,andrequiredJiangxiXinxin,JiangxiShanshi,JiangxiZhongyitorepayRMB300millionwithRMB108,000liquidateddamages,andRMB13.65millionofinterest.Meanwhile,9guarantorsincludingJiangxiKonka,XinfengMicrocrystallineandNanocrystalarerequiredtoundertakejointliabilityguaranty.ThejudgmentoffirstinstancewasrequiredJiangxiXinxin,JiangxiZhongyiandJiangxiShanshishallrepaytheprincipal,interestandliquidateddamagestoGreatWallJiangxiBranchandtheguarantorsbearthejointliabilityforsatisfactiontothedebts.Thedefendantshaveappealedagainstthefirstinstancejudgment.Sofar,thecasehasnotyetbeenheardincourt. | 31,375.8 | Yes | Thecaseisawaitingthesecondtrial | Thecaseisawaitingthesecondtrial.ThecorrespondingliabilityofriskassumedbytheCompany'scontrolledcompaniesinvolvedinthecaseiscontrollable.OtherdefendantsexclusiveofthecontrolledcompaniesoftheCompanyaresolvent,andatthesametime,theCompanyhasoutstandingpaymentstotheotherdefendantsinthiscase.TheaboveamountcanbeoffsetagainsttheCompany’sdebtobligationsinthefuture.Basedontheprincipleofprudence,theCompanyhaswithdrawnrelevantimpairmentprovisionaccordingtoaccountingpolicies. | Suitpending |
| Duetothedisputeoftherighttouseofthepatent,ViaLicensingCorporationsubmittedthearbitrationtotheHongKongInternationalArbitrationCenterandrequiredHongKongKonkaandtheCompanytopayUSD18.69millionforthepatentlicensefee,andUSD40.3875millionforsubsequentmodificationofthepatentlicensefee.Withtheapprovalofthearbitrationtribunal,theapplicationforarbitrationprocedurewascancelledandthetwopartieshavereachedasettlement. | 28,175.13 | Not | Thearbitrationprocedurewasterminatedandthetwopartieshavereachedasettlement. | Thearbitrationprocedurewasterminatedandthetwopartieshavereachedasettlement.NosignificanteffecttotheprofitoftheCompany. | Thearbitrationprocedurewasterminatedandthetwopartieshavereachedasettlement. |
| Duetothedisputeofsalescontract,WumartChainCo.,Ltd.suedtheBeijingBranchofWumarttothecourtofShijingshanDistrictofBeijing,andrequestedtheBeijingBranchtoreturntheprepaymentofgoods. | 1,073.67 | Not | Thecasehasbeenheardincourtandpendingforjudgment. | Thecaseisawaitingtrial/judgment.Basedontheprincipleofprudence,theCompanyhaswithdrawnrelevantimpairmentprovisionaccordingtoaccountingpolicies. | Suitpending |
XIIIPunishmentsandRectifications
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XIVCreditQualityoftheCompanyaswellasItsControllingShareholderandActualController
□Applicable√NotapplicableXVEquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XVIMajorRelated-PartyTransactions
1.ContinuingRelated-PartyTransactions
√Applicable□Notapplicable
| Relatedparty | RelationshipwiththeCompany | Typeoftransaction | Specifictransaction | Pricingprinciple | Transactionprice | Totalvalue(RMB’0,000) | As%oftotalvalueofallsame-typetransactions | Approvedtransactionline(RMB’0,000) | Overtheapprovedlineornot | Methodofsettlement | Obtainablemarketpriceforsame-typetransactions | Disclosuredate | Indextodisclosedinformation |
| OCTEnterprisesCo.,Ltdanditssubsidiaries | Underthesameactualcontroller | Purchaseofcommoditiesandservices | Purchaseofmaterials | Negotiatedprice | Marketprice | 1,902.10 | 0.20% | 2,000 | Not | Cash | N/A | 30March2019 | http://www.cninfo.com.cn/new/index |
| OCTEnterprisesCo.,Ltdanditssubsidiaries | Underthesameactualcontroller | Salesofgoodsandservices | SalesofLCD | Negotiatedprice | Marketprice | 3,159.91 | 0.36% | 3,000 | Not | Cash | N/A | 30March2019 | |
| Total | -- | -- | 5,062.01 | -- | 5,000 | 4,912.08 | -- | -- | -- | -- | |||
| Large-amountsalesreturnindetail | N/A | ||||||||||||
| GivetheactualsituationintheReportingPeriod(ifany)whereanestimatehadbeenmadeforthetotalvalueofcontinuingrelated-partytransactionsbytypetooccurintheReportingPeriod | TheCompanyhaspublishedtheForecastingPublicNoticeonRoutineRelated-partyTransactionforY2018onSecuritiesTimes,ShanghaiSecuritiesNews,ChinaSecuritiesJournalandHongKongTaKungPaoaswellastheInternetwebsitedesignatedbyCSRChttp://http://www.cninfo.com.cn/new/indexon30March2019.IntheReportingPeriod,thebasisforpricing,transactionprice,transactionamountandsettlementmethodsofrawmaterialspurchasedbytheCompanywerebasicallyinaccordancewiththeforecast.ThetotalamountwasRMB49.1208million. | ||||||||||||
| Reasonforanysignificantdifferencebetweenthetransactionpriceandthemarketreferenceprice | N/A | ||||||||||||
2.Related-PartyTransactionsRegardingPurchaseorSalesofAssetsorEquityInterests
√Applicable□NotapplicableRefertoXVI-5fordetails.
3.RelatedTransactionsRegardingJointInvestmentsinThirdParties
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.。
4.CreditsandLiabilitieswithRelatedParties
√Applicable□NotapplicableIndicatebytickmarkwhethertherewereanycreditsandliabilitieswithrelatedpartiesfornon-operatingpurposes.
√Yes□NoCreditsreceivablewithrelatedparties:
| Relatedparty | Relatedrelationship | Formingreason | Whetherthereisoccupationonnon-operatingcapitalornot | Beginningbalance(RMB’0,000) | IncreasedintheReportingPeriod(RMB’0,000) | RecoveredintheReportingPeriod(RMB’0,000) | Interestrate | InterestintheReportingPeriod(RMB’0,000) | Endingbalance(RMB’0,000) |
| YibinOCTSanjiangPropertiesCo.,Ltd. | Subsidiaryofcontrollingshareholder | Demandofbusinessdevelopment | No | 10,000 | 0 | 0 | 5.70% | 577.92 | 10,000 |
| ChuzhouKangjinHealthIndustryDevelopmentCo.,Ltd. | Subsidiaryofcontrollingshareholder | Demandofbusinessdevelopment | No | 0 | 5,880 | 0 | 7.00% | 112.05 | 5,880 |
| EffectsofcreditswithrelatedpartiesontheCompany’soperatingresultsandfinancialconditions | NoeffecttothenormaloperationoftheCompany.OthershareholdersofYibinOCTSanjiangPropertiesCo.,Ltd.andChuzhouKangjinHealthIndustryDevelopmentCo.,Ltd.offerfinancialassistanceunderthesameconditionsinaccordancetotheirshareholdingratio. | ||||||||
Liabilitiespayablewithrelatedparties:
| Relatedparty | Relatedrelationship | Formingreason | Beginningbalance(RMB’0,000) | IncreasedintheReportingPeriod(RMB’0,000) | RecoveredintheReportingPeriod(RMB’0,000) | Interestrate | InterestintheReportingPeriod(RMB’0,000) | Endingbalance(RMB’0,000) |
| OCTEnterprisesCo.,Ltd. | Controllingshareholder | TheCompanyappliesentrustedloantoit | 10,000 | 10,000 | 5.40% | 446 | - | |
| 2,000 | 2,000 | 5.60% | 92 | - | ||||
| 140,000 | 140,000 | 6.00% | 6638 | - | ||||
| 48,000 | 48,000 | 5.00% | 2247 | - |
| 100,000 | 100,000 | 6.00% | 5526 | - | |||
| 27,656 | 27,656 | 5.00% | 791 | - | |||
| 50,000 | 50,000 | 5.00% | 826 | - | |||
| 50,000 | 50,000 | 5.00% | 2063 | - | |||
| 22,192 | 22,192 | 5.00% | 740 | - | |||
| 150,000 | 4.06% | 1150 | 150,000 | ||||
| 150,000 | 56,594 | 4.14% | 773 | 93,406 | |||
| 38,464 | 38,464 | 5.00% | 422 | ||||
| 90,000 | 3.93% | 206 | 90,000 | ||||
| EffectsofliabilitieswithrelatedpartiesontheCompany’soperatingresultsandfinancialconditions | TheCompanyappliesentrustedloanfromOCTEnterprisesCo.,Ltd.whichmeetstheneedsofthecompany'sexistingbusinessdevelopmentandreducesthefinancingcost. | ||||||
5.OtherMajorRelated-PartyTransactions
√Applicable□Notapplicable
(1)Transferof51%ofequityinterestsofChuzhouKonkaTID:The11
thMeetingofthe9
thBoardofDirectorsoftheCompanyheldon6June2019reviewedandapprovedtheProposalonTransferof51%ofEquityInterestsofChuzhouKonkaTechnology&IndustryDevelopmentCo.,Ltd.andtheCompanydecidedtotransfer51%equityinterestsofChuzhouKonkaTechnology&IndustryDevelopmentCo.,Ltd.toShenzhenOCTCapitalInvestmentManagementCo.,Ltd.viaagreementwiththepriceofRMB63.5205million.Atpresent,theCompanyhasreceivedthesharetransferpaymentandtheregistrationchangingproceduresofChuzhouKonkaTechnology&IndustryDevelopmentCo.,Ltd.hasbeencompleted.
(2)Transferof51%ofequityinterestsofChuzhouKangjinHealthIndustrialDevelopmentCo.,Ltd.:The15
thMeetingofthe9
th
BoardofDirectorsoftheCompanyheldon16September2019reviewedandapprovedtheProposalonTransferof51%ofEquityInterestsofChuzhouKangjinHealthIndustrialDevelopmentCo.,Ltd.andtheCompanydecidedtotransfer51%equityinterestsofChuzhouKangjinHealthIndustrialDevelopmentCo.,Ltd.toShanghaiOCTInvestmentDevelopmentCo.,Ltd.withthepriceofRMB122.2543million.Atpresent,theCompanyhasreceivedthetransferpaymentandtheregistrationchangingproceduresofChuzhouKangjinHealthIndustrialDevelopmentCo.,Ltd.hasbeencompleted.
(3)Launchedthefinancialleasingbusiness:The17
thMeetingofthe9
th
BoardofDirectorsoftheCompanyheldon22October2019reviewedandapprovedtheProposalonLaunchingtheFinancialLeasingBusinesswithOCTFinancialLeasingCo.,Ltd.andtheCompanydecidedtolaunchthefinancialleasingbusinesswithOCTFinancialLeasingCo.,Ltd.viatheCompanyandthe
wholly-ownedsubsidiaryDongguanKonkarespectivelywithfinancingamountofRMB50millionnotexceededrespectively.Thefinancingmaturityisnotover50yearswiththeannualinterestrateof5.45%.
(4)Providedadvertisingservice:The19
thMeetingofthe9
thBoardofDirectorsoftheCompanyheldon25November2019reviewedandapprovedtheProposalonProvisionofAdvertisingServicetoOverseasChineseTownEnterprisesCo.,andtheCompanydecidedtoprovidetheintelligentterminaladvertisingservicetoOverseasChineseTownEnterprisesCo.withservicetransactionpriceofRMB95million.Indextothepublicannouncementsaboutthesaidrelated-partytransactionsdisclosed
| Titleofpublicannouncement | Disclosuredate | Disclosurewebsite |
| AnnouncementonTransferof51%ofEquityInterestsofChuzhouKonkaTechnology&IndustryDevelopmentCo.,Ltd.andtheRelated-partyTransaction | 11June2019 | http://www.cninfo.com.cn/new/index |
| AnnouncementonTransferof51%ofEquityInterestsofChuzhouKonkaTechnology&IndustryDevelopmentCo.,Ltd.andCompletionofRegistrationChangingProcedures | 25June2019 | |
| AnnouncementonTransferof51%ofEquityInterestsofChuzhouKangjinHealthIndustryDevelopmentCo.,Ltd.andtheRelated-partyTransaction | 18September2019 | |
| AnnouncementonTransferof51%ofEquityInterestsofChuzhouKangjinHealthIndustryDevelopmentCo.,Ltd.andCompletionofRegistrationChangingProcedures | 27September2019 | |
| AnnouncementonLaunchingtheFinancialLeasingBusinessandtheRelated-partyTransaction | 23October2019 | |
| ProposalonProvisionofAdvertisingServicetoOverseasChineseTownEnterprisesCo.andtheRelated-partyTransaction | 26November2019 |
XVIIMajorContractsandExecutionthereof
1.Entrustment,ContractingandLeases
(1)Entrustment
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(2)Contracting
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(3)Leases
√Applicable□NotapplicableNotetoleasesNosignificantleasesintheReportingPeriod.TherentofKonkaDevelopmentBuildinghasreceivedRMB80.94millionintheReportingPeriod.
Theprojectbringingaboutgainsorlossesasover10%oftotalprofitintheReportingPeriod
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.MajorGuarantees
√Applicable□Notapplicable
(1)Guarantees
Unit:RMB'0,000
| GuaranteesprovidedbytheCompanyanditssubsidiariesforexternalparties(exclusiveofthoseforsubsidiaries) | |||||||||||
| Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot | |||
| JiangxiXinxinJian’anEngineeringCo.,Ltd. | 10,000 | 12December2016 | 10,000 | Joint-liability | Twoyears | Not | Not | ||||
| JiangxiZhongyiDecorationMaterialsCo.,Ltd. | 10,000 | 12December2016 | 10,000 | Joint-liability | Twoyears | Not | Not | ||||
| JiangxiShanshiTechnologicalDevelopmentCo.,Ltd. | 10,000 | 12December2016 | 10,000 | Joint-liability | Twoyears | Not | Not | ||||
| KunshanKangshengInvestmentDevelopmentCo.,Ltd. | 19September2018 | 24,500 | 23September2019 | 24,500 | Joint-liability | Threeyears | Not | Yes | |||
| YibinOCTSanjiangPropertiesCo.,Ltd. | 19September2018 | 40,000 | 29September2019 | 14,000 | Joint-liability | Threeyears | Not | Yes | |||
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(A1) | 1,281 | TotalactualamountofsuchguaranteesintheReportingPeriod(A2) | 38,500 | ||||||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(A3) | 208,781 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(A4) | 68,500 | ||||||||
| GuaranteesprovidedbetweentheCompanyandsubsidiaries | ||||||||
| Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| AnhuiTongchuang | 31March2017,23May2018and19September2018 | 90,000 | 23January2019 | 5,000 | Joint-liability | Oneyear | Not | Not |
| 24June2019 | 3,000 | Joint-liability | Oneyear | Not | Not | |||
| 1August2019 | 4,500 | Joint-liability | Oneyear | Not | Not | |||
| 5November2019 | 3,000 | Joint-liability | Oneyear | Not | Not | |||
| 7November2019 | 5,500 | Joint-liability | Oneyear | Not | Not | |||
| 25December2019 | 5,000 | Joint-liability | Oneyear | Not | Not | |||
| AnhuiKonka | 31March2017 | 110,000 | 6December2018 | 10,000 | Joint-liability | Oneyear | Not | Not |
| 31July2019 | 26,800 | Joint-liability | Oneyear | Not | Not | |||
| 19August2019 | 8,000 | Joint-liability | Oneyear | Not | Not | |||
| EconTechnology | 19September2018 | 120,000 | 23April2019 | 2,000 | Joint-liability | Oneyear | Not | Not |
| 13May2019 | 5,000 | Joint-liability | Oneyear | Not | Not | |||
| 5June2019 | 3,150 | Joint-liability | Oneyear | Not | Not | |||
| 28October2019 | 3,000 | Joint-liability | Twoyears | Not | Not | |||
| 14November2019 | 5,000 | Joint-liability | Oneyear | Not | Not | |||
| HongKong | 31March2017and31October2018 | 355,000 | 13March2019 | 16,169 | Joint-liability | Oneyear | Not | Not |
| Konka | 18July2019 | 9,490 | Joint-liability | Oneyear | Not | Not | ||
| 7August2019 | 10,545 | Joint-liability | Oneyear | Not | Not | |||
| 15November2019 | 9,455 | Joint-liability | Oneyear | Not | Not | |||
| JiangxiKonka | 31October2018 | 60,000 | 4December2018 | 10,000 | Joint-liability | Twoyears | Not | Not |
| 7December2018 | 10,000 | Joint-liability | Twoyears | Not | Not | |||
| 18March2019 | 11,961 | Joint-liability | Twoyears | Not | Not | |||
| 28February2019 | 10,000 | Joint-liability | Oneyear | Not | Not | |||
| 26June2019 | 5,500 | Joint-liability | Threeyears | Not | Not | |||
| 27June2019 | 6,000 | Joint-liability | Oneyear | Not | Not | |||
| 30October2019 | 6,500 | Joint-liability | Threeyears | Not | Not | |||
| XingDaHongYe | 19September2018and30March2019 | 20,000 | 21November2018 | 5,800 | Joint-liability | Twoyears | Not | Not |
| 19April2019 | 4,000 | Joint-liability | Oneyear | Not | Not | |||
| 20May2019 | 1,000 | Joint-liability | Oneyear | Not | Not | |||
| 9December2019 | 2,500 | Joint-liability | Twoandahalfyears | Not | Not | |||
| ElectronicsTechnology | 19September2018 | 350,000 | 18April2019 | 58,000 | Joint-liability | Oneyear | Not | Not |
| 20June2019 | 5,000 | Joint-liability | Oneyear | Not | Not | |||
| 2December2019 | 50,000 | Joint-liability | Oneyear | Not | Not | |||
| AnhuiElectricalAppliance | 19September2018 | 30,000 | 2February2019 | 13,000 | Joint-liability | Fiveyears | Not | Not |
| BoluoKonkaPrecision | 31March2018 | 5,000 | 20February2019 | 2,500 | Joint-liability | Twoyears | Not | Not | |||
| SichuanKonka | 31March2018 | 55,000 | 18March2019 | 4,000 | Joint-liability | Threeyears | Not | Not | |||
| XinfengMicrocrystalline | 30March2019 | 25,000 | 19June2019 | 7,200 | Joint-liability | Oneyear | Not | Not | |||
| 27December2019 | 7,200 | Joint-liability | Oneyear | Not | Not | ||||||
| NanoCrystallizedGlass | 30March2019 | 45,000 | 26June2019 | 10,000 | Joint-liability | Threeyears | Not | Not | |||
| 20December2019 | 5,000 | Joint-liability | Threeyears | Not | Not | ||||||
| KonkaPengrun | 19September2018 | 20,000 | 24June2019 | 5,000 | Joint-liability | Oneyear | Not | Not | |||
| DongguanKonka | 19September2018 | 10,000 | 8November2019 | 2,000 | Joint-liability | Fiveyears | Not | Not | |||
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(B1) | 140,200 | TotalactualamountofsuchguaranteesintheReportingPeriod(B2) | 340,970 | ||||||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(B3) | 2,002,544 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(B4) | 376,770 | ||||||||
| Guaranteesprovidedbetweensubsidiaries | |||||||||||
| Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot | |||
| SichuanKonka | 14,000 | 28May2018 | 14,000 | Joint-liability | Sevenyears | Not | Not | ||||
| RushanYikeWaterEnvironmentManagementCo.,Ltd. | 29,000 | 29December2016 | 29,000 | Joint-liability | Tenyears | Not | Not | ||||
| XingDaHongYe | 1,000 | 13November2018 | 1,000 | Joint-liability | Twoyears | Not | Not | ||||
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(C1) | 0 | TotalactualamountofsuchguaranteesintheReportingPeriod(C2) | 0 | ||||||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(C3) | 87,300 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(C4) | 44,000 | |||
| Totalguaranteeamount(totalofthethreekindsofguaranteesabove) | ||||||
| TotalguaranteelineapprovedintheReportingPeriod(A1+B1+C1) | 141,481 | TotalactualguaranteeamountintheReportingPeriod(A2+B2+C2) | 379,470 | |||
| TotalapprovedguaranteelineattheendoftheReportingPeriod(A3+B3+C3) | 2,298,625 | TotalactualguaranteebalanceattheendoftheReportingPeriod(A4+B4+C4) | 489,270 | |||
| Totalactualguaranteeamount(A4+B4+C4)as%oftheCompany’snetassets | 60.60% | |||||
| Ofwhich: | ||||||
| Balanceofguaranteesprovidedforshareholders,actualcontrollerandtheirrelatedparties(D) | 0 | |||||
| Balanceofdebtguaranteesprovideddirectlyorindirectlyforobligorswithanover70%debt/assetratio(E) | 489,270 | |||||
| Amountbywhichthetotalguaranteeamountexceeds50%oftheCompany’snetassets(F) | 0 | |||||
| Totalofthethreeamountsabove(D+E+F) | 489,270 | |||||
| JointresponsibilitiespossiblyborneintheReportingPeriodforundueguarantees(ifany) | N/A | |||||
| Provisionofexternalguaranteesinbreachoftheprescribedprocedures(ifany) | N/A | |||||
Compoundguarantees:
None
(2)IrregularitiesinProvisionofGuarantees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
3.CashEntrustedtoOtherEntitiesforManagement
(1)CashEntrustedforWealthManagement
√Applicable□Notapplicable
Unit:RMB'0,000
| Type | Capitalresource | Amount | Outstandingbalance | Overdueamount |
| Bankfinancialproducts | Self-ownedfunds | 102,073.76 | 1,735.83 | 0 |
| Total | 102,073.76 | 1,735.83 | 0 | |
High-riskentrustedassetmanagementwithsignificantsingleamountorlowsecurity,poorliquidityandnocapitalpreservation:
□Applicable√NotapplicableWhetherthereisthecasewheretheprincipalcannotberecoveredatmaturityorothercasewhichmaycauseimpairmentforentrustedassetmanagement
□Applicable√Notapplicable
(2)EntrustedLoans
√Applicable□NotapplicableOverviewofentrustedloans
Unit:RMB'0,000
| Totalamount | Capitalresource | Outstandingamount | Overdueamount |
| 2,000 | Self-ownedfunds | 2,000 | 0 |
High-riskentrustedloanswithsignificantsingleamountorlowsecurity,poorliquidityandnocapitalpreservation:
□Applicable√NotapplicableWhetherthereisthecasewheretheprincipalcannotberecoveredatmaturityorothercasewhichmaycauseimpairmentforentrustedloans
□Applicable√Notapplicable
4.OtherMajorContracts
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XVIIICorporateSocialResponsibility(CSR)
1.MeasuresTakentoFulfillCSRCommitmentTheCompanyinsiststheprincipleofhealth,stabilityandsustainabledevelopmenttobenefitshareholdersandemployeesandsatisfycustomers.Inpursuitofeconomicprofitsandprotectionofshareholders’profits,theCompanyisactiveinprotectinglegalrightsofdebtorsandemployees,treatingsuppliers,customersandconsumersingoodfaith,andparticipatinginenvironmentalprotectionandcommunityestablishmentforharmoniousdevelopmentoftheCompanyandsociety.
1.Toprotectrightsofshareholdersandcreditors
(1)TheCompanyprotectsrightsofshareholdersTheCompanyinsistsprotectionofrightsforallshareholders,especiallyequalstatusandlegalrightsformediumandsmallshareholders,andmakeinsuranceofrightstobeinformed,participationandvote.TheCompanywouldperformallobligationsofinformationdisclosuretoensuretimely,accurateandcompleteinformationandstrictlyexecuteconfidentialsystemofregistrarandinsiderinformationtoguaranteejustice.TheCompanypaysattentiontorepaytoshareholders,andinsistsmutualdevelopmentwithinvestors.Inthepreviousthreeyears,theCompanysharesdividendswithallshareholders.TheCompanystrictexecutesdividendpoliciesregulatedinArticlesofAssociation.AllcashdividendscomplywithregulationsinArticlesofAssociationandrequirementsinshareholders’conference.
(2)TheCompanyprotectsrightsofcreditorsInfullconsiderationoflegalrightsofcreditors,theCompanycomplieswithstrictbusinessrulesof
creditcooperationtoguaranteelegalrightsofcreditors.Nodamagesuponrightsofcreditorshappened.
2.TheCompanyperformsresponsibilitiestosuppliersandcustomers
(1)Itisdevotedtoimprovecustomerservicequality.TheCompanyisinsistingphilosophyofcustomerorientationtostrengthencustomerservicemanagement,serviceconsciousnessforemployees,servicelevelsandtoprotectrightsforcustomers.Throughcustomerservicehot-line,fieldvisitandfollow-upservice,theCompanyhassetagoodcorporateimageforcustomers.
(2)BehonesttosuppliersFollowingtheprincipleofintegrityandmutuallybeneficialcooperation,theCompanykeepsgoodcooperativerelationswithsuppliersateachlevel.Thecorporateprincipleisopen,fairandimpartialtostandardizeprocurement,protectsuppliers’legalrightsandlaysolidfoundationforfurthercooperation.
3.BeenthusiastictosocialandpublicwelfareundertakingsBasedontheprincipleofappreciatingandrepayingthesociety,theCompanyhasparticipatedinallkindsofactivitiesforpublicwelfare,cooperatedwithsociety,undertakensocialresponsibilitiesactivelyandpromotedharmoniousdevelopmentbetweenenterpriseandsociety.
4.BeresponsibleforemployeesTheCompanyinsiststheprincipleofpeopleorientationtoimproveworkingenvironment,promoteoccupationalskills,provideopportunityandplatformfordevelopmentandgrowthandencourageselfupgradationandrealizationforemployees.Mutualimprovementforemployeesandenterprisecouldbeachieved.
(1)Behonestandlaw-abidingtoprotectlegalrightsforemployeesTheCompanywouldstrictlycomplywithlawsandregulationsinLaborLawandLaborContractLawtosignlaborcontractwithemployeeswithfairtreatmentinemployment,payment,promotion,training,demissionandretirement.Also,theCompanywouldpayallkindsofinsurancesandhousingfundforemployees.Regularphysicalexaminationwouldbeorganizedforeachyear.Anyproblemsfoundwouldrequirere-examinationandconsultationfromadoctor.TheCompanywouldimprovelivingquality;enhancecohesiveforceandsenseofbelongingsthroughaseriesofsafeguardmeasures.
(2)ToprotectoccupationalhealthforemployeesTheCompanywouldestablishandperfecttraining,safetyassessmentbysecuritysystemtoguaranteethesafetyandoccupationalhealthforemployees.Ontheotherhand,bypromotionoftheimportanceofsafety,safetyawarenesswouldberootedinthehearttomakeallemployeesabidebysafetystandardsandfullyplaysubjectiveinitiativeinprotectingself-occupationalsafetyandproductionsafety.
(3)TopromoteoccupationalskillsbydiversifiedprofessionaltrainingTheCompanyhasalwayspaidgreatattentionondiversifiedtrainingforemployees.Ontheonehand,theCompanywouldbemeticulousintrainingofregularbusinessandoccupationalskillsandcarryoutallrequirementspositivelytoimproveprofessionallevelsbynormaltrainingmanagement.Ontheotherhand,theCompanywouldestablishmethodsofself-trainingplatform,traininginstructor,themetrainingandlecturestoprovidecolorfultrainingactivities.Besidesthework,professionalandcomprehensivequalitywouldbefullypromoted.
5.BeresponsibleforenvironmentTheCompanyconcernsaboutenvironmentalchangesandcloserelationshipswithenvironmentbycreatinglowcarboneconomyintechnicalinnovation,fromgreenmanufacturing,greenproductstogreenindustrycirculareconomy.TheCompanywouldprovideeffortsinprotectingglobalecologicalenvironment.InJune2012,subsidizedproductscataloguehadbeenreleasedjointlybyNationalDevelopmentandReformCommission,MinistryofIndustryandInformationandMinistryofFinance.Inthenewyear,theCompanywouldundertakeallsocialresponsibilitiesbyimprovingstrategicmanagement,sustainabledevelopmentandenterpriseeconomicefficiency.Itwouldreattributeallshareholdersandwouldprotectlegalrightsforcreditorsandemployees.Tobehonesttosuppliersandcustomers,theCompanywouldservelocaleconomicdevelopmentandparticipateinsocialpublicwelfareactivitiesandenvironmentprotection.Itwouldundertakeallresponsibilitiesinmanyfieldsandmakeattributionstosocial,economic,andenvironmentalsustainabledevelopmentforasocialismharmonioussociety.
2.MeasuresTakenforTargetedPovertyAlleviation
(1)PlansInaccordancewiththeguidingprinciplesofthestateonthedevelopmentofprecisionpovertyalleviation,theCompanyhasproactivelycarriedoutcriticalworkonpovertyalleviationandengagedinthetargetedsupportinSansuiCountyandTianzhuCountyinGuizhouProvince.
(2)SummaryoftheRelatedWorkDoneintheReportingPeriodIn2019,theCompanydonatedofficesuppliesofapproximatelyRMB0.3million,includingtelevisionsetsandbookstoSansuiCountyandTianzhuCounty,togetherwiththeworkonpublicbrandestablishmentofnomorethanRMB0.378millionwhichwillbeusedforthepackageplanningandadvertisementpromotionofSansuiducksofSansuiCounty.
(3)ResultsofTargetedPovertyAlleviation
| Index | Unitofmeasurement | Amount/implementation |
| I.Overallsituation | —— | —— |
| Ofwhich:2.Materialsconvertedtocash | RMB’0,000 | 67.8 |
| II.Itemizedinvestment | —— | —— |
| 9.Otherplans | —— | —— |
| 9.2Investmentamount | RMB’0,000 | 67.8 |
(4)SubsequentPlansTofullyperformitsdutiesoftargetedpovertyalleviation,in2020,theCompanyplanstocontinuouslyconductthetargetedpovertyalleviationaffairsforTianzhuandSansuitwocountiesofGuizhouProvince.
3.IssuesRelatedtoEnvironmentalProtectionIndicatebytickmarkwhethertheCompanyoranyofitssubsidiariesisidentifiedasamajorpolluterbytheenvironmentalprotectionauthorities.Yes
| Nameofpolluter | Nameofmajorpollutants | Wayofdischarge | Numberofdischargeoutlets | Distributionofdischargeoutlets | Dischargeconcentration | Dischargestandardsimplemented | Totaldischarge | Approvedtotaldischarge | Excessivedischarge |
| XingDaHongYe | Pollutionsourcesofwastewater:PH、copper、COD、ammonianitrogen、totalnitrogen、totalphosphorus | Dischargeofstationarypollutionsources | 1 | Maindischargeoutletofthewastewaterstation | PH6-9；copper≤0.5mg/L；COD≤80mg/L；ammonianitrogen≤15mg/L；totalnitrogen≤20mg/L；totalphosphorus≤1mg/L | ElectroplatingwaterpollutantdischargestandardDB44/1597-2015Table1 | 0.448milliontons/year | Totaldischarge448,500tons/year;pollutantCOD24.891tons/year;ammonianitrogen3.982tons/year;totalnitrogen9.373tons/year;totalphosphorus0.439tons/year | None |
| wastegaspollutants:sulfuricacidfume,hydrogenchloride,formaldehyde,hydrogencyanide,nitrogenoxide,ammonia,benzene, | Dischargeofstationarypollutionsources | 14 | Threeontheroofofoneplant,tenontheroofoftwoplantsandoneontheroofofthecanteen | sulfuricacidfume≤30mg/m3；nitrogenoxide≤200mg/m3；hydrogenchloride≤30mg/m3；TVOC≤90mg/m3；benzene≤12mg/m3；methylbenzen≤40mg/m3；dimethylbenzene≤7 | EmissionStandardforElectroplatingPollutantsGB21900-2008AirEmissionLimitsTable5,GuangdongAirPollutantEmissionStandardDB44/27-2001theSecondLevelStandardintheSecondPeriod,Emissionstandardfor | 2,986,560,000standardcube/year | 2,986,560,000standardcube/year(note:thetotaldischargeisnotstatedinthelatestversionofnationaldischargepermitin2018;twoexhausttowerswereaddedin2018;calculated | None |
| methylbenzene,TVOC,tinanditscompounds,PM(dust),oilfume | 0mg/m3；tinanditscompounds≤8.5mg/m3；PM（dust）≤120mg/m3；oilfume≤2mg/m3 | OdorPollutants(GB14554-1993)Table2Standard,Emissionstandardofcookingfume(GB18483-2001) | basedonairvolumeinenvironmentalimpactassessment) |
(1)Theconstructionofanti-pollutionfacilitiesanditsoperationsituationAllproductionequipmentofGuangdongXingdaHongyeElectronicsCo.,Ltd.hasbeensetupwithsupportingenvironmentalprotectionfacilitiesaccordingtotherequirementsofenvironmentalimpactassessment.Thedischargeofwastewater,wastegasandnoiseaswellasthedisposalofallsolidwastesintheCompanyallmetthestandardsduringtheReportingPeriod.ThesewagetreatmentcentreofGuangdongXingdaHongyeElectronicsCo.,Ltd.withaninvestmentofaboutRMB15millionwasformallyputintoproductioninJune2007,andthetreatmentcapacityofthesewagetreatmentfacilitywas2,566tons/day.Aftertechnicalimprovementandexpansion,thecapacityincreasedto2,900tons/daywiththetreatmentprocessremainingunchanged.Currently,thesewagetreatmentfacilitiesarefunctioningwellandthemainpollutantdischargemeetsthedischargestandardsandenvironmentalassessmentstandards.ThepollutantsaredischargedtoFushachongafterbeingtreatedattheself-builtsewagetreatmentstation.
(2)EnvironmentalimpactassessmentandotherenvironmentalprotectionadministrativelicensesoftheconstructionprojectGuangdongXingdaHongyeElectronicsCo.,Ltd.obtainedtheapprovalfromZhongshanEnvironmentalProtectionBureau(ZHJ[2004]No.61)fortheoperationsandconstructionherein2004.Subsequently,itobtainedthedocumentsofZHJD[2008]No.06250andZHJD[2010]No.04469respectivelyin2008and2010.Aftertheoperationsofitsoriginalproject,GuangdongXingdaHongyeElectronicsCo.,Ltd.passedthetwophasesofacceptanceassessment,includingthePhaseIacceptanceassessmentin2008(HY[2008]No.02)andthePhaseIIacceptanceassessmentin2012(ZHYBG[2012]No.000092).InDecember2012,GuangdongXingdaHongyeElectronicsCo.,Ltd.commissionedZhongshanResearchInstituteofEnvironmentalProtectionSciencetoconducttheassessmentofenvironmentalimpactforthetechnicalimprovementandexpansionprojectofGuangdongXingdaHongyeElectronicsCo.,Ltd.OnDecember31,2012,itobtainedtheapprovaldocumenttitledReplytotheReportontheEnvironmentalImpactoftheTechnicalImprovementandExpansionProjectofGuangdongXingdaHongyeElectronicsCo.,Ltd.(ZHJS(2012)No.115)fromZhongshanEnvironmentalProtectionBureau.Thedocumentgrantedtheapprovalforadditionoftheproductionofsix-layerPCB,eight-layerPCBandaboveandHDIboardsandforreductionoftheproductionofsingle-sidedPCB.Afterthetechnicalimprovementandexpansion,thetotalproductioncapacityofsingle-sidedPCBwouldbe200,000m
/year,ofdouble-sidedPCBwouldbe250,000m
/year,offour-layerPCBwouldbe300,000m
/year,ofsix-layerPCBwouldbe200,000m
/year,ofeight-layerPCBandabovewouldbe150,000m
/yearandofHDIboardswouldbe100,000m
/year.Intheproject,whiletheoriginalplatingequipmentandprocessesremainedunchanged,thebrownoxideprocesswasaddedtotheoriginalproductionprocess;alltheincreasedplatingcapacitywouldbeoutsourced.Thetechnicalimprovementandexpansionprojectwascommencedin2013andcompletedinJanuary2018.ThecommissioningwascarriedoutfromFebruary10,2018toJuly8,2018.Theconstructionoftheprojectcompliedwiththerequirements
forenvironmentalimpactassessmentandmetthecriteriafortheacceptanceofenvironmentalprotectionforthecompletionofconstructionprojects.In2018,theCompanyobtainedthestatesewagepermit,certificateNo.:91442000768405216J001P.
(3)ContingencyplanforemergentenvironmentalincidentInstrictaccordancewithrequirementsoflaws,regulationsandrelevantdocuments,suchasLawofthePeople’sRepublicofChinaonEmergencyResponseandInterimMeasuresonEnvironmentalEmergencyResponsePlan,GuangdongXingdaHongyeElectronicsCo.,Ltd.hasestablishedriskpreventionmeasuresandemergencyresponseplans,keptitsemergencyequipmentinanormalstate,formulatedtheContingencyPlanforEmergentEnvironmentalIncident,andputonrecordsatZhongshanEnvironmentalProtectionBureau,GuangdongProvince,recordNo.:4420002017044M.Inaddition,theCompanyconductsadrillofmajorenvironmentalpollutionincidentonitsfactorytoenhanceitsemergencyresponsecapabilitiesforemergentenvironmentalpollutionincidents.Furthermore,GuangdongXingdaHongyeElectronicsCo.,Ltd.hasbuiltanemergencypool(whichisthecomprehensivewatertankinthesewagetreatmentstationcoveringanareaof800m
)andsetupafirepool(500m
andlocatedonFloor1ofFactoryBuildingNo.2),whichserveastemporarystoragepoolsforexteriordrainageorfiredrainagetoeradicateaccidentaldischargeofwastewaterinthecaseoffailedoperationofthesewagetransmissionpipelineorfireaccidentduetooutageorotherspecialcircumstances.Thesewagetransmissionpipelinehasbeenequippedwithanti-corrosionandcathodicprotectionusinganti-corrosionpipesandcarbonsteelpipes.Pursuanttothenewdischargestandards,therelateddischargepipelinehasbeenmodifiedandtheproductiondepartmenthasbeenrequiredtodischargestrictlyinaccordancewithdischargestandardstocutthecostsofwastewatertreatment.Differenttypesofwastewaterarenormallyandproperlytreatedthroughfineshunting.Personnelhavebeenspeciallyarrangedtomanagethechemicalliquidwarehouseandexertreasonablecontrolandrequirementsovertheliquiddischargebytheplantandtimelytransportationoftheliquidbysuppliers;emergencytoolssuchasprotectivemasks,bootsandimmisciblepumpshavebeenequipped;
(4)Environmentalself-monitoringplanAccordingtotherequirementsoftheEnvironmentalProtectionAdministration,GuangdongXingdaHongyeElectronicsCo.,Ltd.attachesgreatimportancetoenvironmentalmonitoringmanagement.Thus,pursuanttotheMeasuresforSelf-MonitoringandInformationDisclosureofNationalKeyMonitoredEnterprises,theReportontheEnvironmentalImpactoftheTechnicalImprovementandExpansionProjectofGuangdongXingdaHongyeElectronicsCo.,Ltd.andthereplyopinionsforenvironmentalimpactassessment,theCompanyhasformulatedtheEnvironmentalSelf-MonitoringPlanandreportedtothemunicipalenvironmentalprotectionbureauforapprovalandrecord.ItimplementsonlinemonitoringforthePH,CODandammonianitrogenpollutantsdischargedinwastewaterthroughreal-timemonitoringandanautomaticfrequencyofeverytwohours,entruststhequalifiedthird-partyonlinemonitoringequipmentoperationandmaintenanceinstitutetocarryoutperiodicmaintenanceonautomaticmonitoringequipmentandmonitoringdatanetworkingequipment,andentruststhequalifiedthird-partymonitoringunittocarryoutthe“threewastes”projectmonitoring.Allself-monitoringplanresultswillbereportedanddisclosedonpublicplatformsonaperiodicbasis.Inthecaseofnormalproduction,theresultswillbeupdatedonadailybasis,withonlinemonitoringdatadisclosedinrealtimeandmanualmonitoringdatadisclosedonthenextdayaftercompletion.Inthecaseofpublicholidays,theoperationmonitoringdatafortheholidayperiodwill
bedisclosedonthefirstworkingdayaftertheholiday.Itemsmonitoredonamonthlybasiswillbedisclosedbythe25
th
dayofthemonth.Itemsinspectedonaquarterlybasiswillbedisclosedbythe
th
dayofthelastmonthofthequarter.Theannualself-monitoringreportforthepreviousyearwillbedisclosedattheendofJanuaryeachyear.Inthecaseofshutdownwithdaysoff,thenumberofdaysoffwillbeindicatedintheinformationbarandrelatedproofswillbesubmittedtothemonitoringcenterofthemunicipalenvironmentalbureauforrecord.TheresultsaredisclosedonGuangdongProvinceKeyPollutionSourceRegulatoryInformationPlatformandonNationalPollutionSourceMonitoringInformationManagementandSharingPlatformforpublicmonitoring.
(5)OtherenvironmentalinformationthatshouldbedisclosedTheenvironmentalprotectioninvestmentofGuangdongXingdaHongyeElectronicsCo.,Ltd.for2019wasapproximatelyRMB19million,mainlyusedastheenvironmentalengineeringinvestment(approximatelyRMB1.5million)andtheoperationofenvironmentalprotectionequipment(approximatelyRMB6.25million).
(6)OtherEnvironmentalInformationAccordingtotheexaminationbytheCompany,theCompanyanditsotherholdingsubsidiariesarenotkeypollutantunits.Allhavefaithfullyimplementedthelawsandregulationsrelatedtoenvironmentalprotection,suchasEnvironmentalProtectionLawofthePeople'sRepublicofChina,WaterPollutionPreventionandControlLawofthePeople'sRepublicofChina,LawofthePeople'sRepublicofChinaonthePreventionandControlofAtmosphericPollution,LawofthePeople'sRepublicofChinaonPreventionandControlofPollutionFromEnvironmentalNoise,LawofthePeople'sRepublicofChinaonthePreventionandControlofEnvironmentalPollutionbySolidWasteinthedailyproductionandoperation,withoutbeingpunishedforviolationsoflawsandregulationsduringtheReportingPeriod.XIXOtherSignificantEvents
√Applicable□Notapplicable(I)Privateplacementofcorporatebonds,assetsecuritizationofcommercialfactoringandassetsecuritizationofaccountsreceivable:Currently,theprivateplacementofcorporatebondsofRMB5billionhasbeenissued,matterswithotherprivateplacementofcorporatebondsofRMB0.6billionareinmovingforward;theassetsecuritizationofcommercialfactoringandassetsecuritizationofaccountsreceivableareinmovingforward.(II)TheCompany’sapplicationforaprivateA-shareplacementwasacceptedforprocessingbytheCSRCon20May2019,andtheCompanyhasdiscloseditsreplytotheCSRC’squestionsregardingtheapplication.Atpresent,thisissueisundertheapprovalofCSRCandit’suncertainwhetheritisapproved.(III)Disclosureindexofsignificantinformation
| AnnouncementNo. | Date | Title | Pageonnewspaper | Linkonhttp://www.cninf |
| o.com.cn | ||||
| 2019-01 | 4January2019 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB29,ShanghaiSecuritiesNews64etc. | http://www.cninfo.com.cn/new/index |
| 2019-02 | 15January2019 | AnnouncementontheProgressofOfferingGuaranteestothewholly-ownedsubsidiary | SecuritiesTimesB13,ShanghaiSecuritiesNews48etc. | |
| 2019-03 | 16January2019 | AnnouncementontheResultofPrivatePlacementofCorporateBondsin2019(PhaseI) | SecuritiesTimesB32,ShanghaiSecuritiesNews33etc. | |
| 2019-04 | 18January2019 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB36,ShanghaiSecuritiesNews76etc. | |
| 2019-05 | 25January2019 | AnnouncementontheProgressofOfferingGuaranteestothewholly-ownedsubsidiary | SecuritiesTimesB29,ShanghaiSecuritiesNews36etc. | |
| 2019-06 | 26January2019 | Announcementonthe2018EarningsForecasts | SecuritiesTimesB20,ShanghaiSecuritiesNews32etc. | |
| 2019-07 | 2February2019 | AnnouncementontheResolutionofthe4thMeetingofthe9thBoardofDirectors | SecuritiesTimesB36,ShanghaiSecuritiesNews33etc. | |
| 2019-08 | 2February2019 | NoticeonConveningthe1stExtraordinaryGeneralMeetingof2019 | SecuritiesTimesB36,ShanghaiSecuritiesNews33etc. | |
| 2019-09 | 2February2019 | AnnouncementonExternalFinancialAidsGeneratedfromPlannedTransferofPartialEquityofSubsidiaries | SecuritiesTimesB36,ShanghaiSecuritiesNews33etc. | |
| 2019-10 | 12February2019 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB25,ShanghaiSecuritiesNews85etc. | |
| 2019-11 | 15February2019 | AnnouncementonAccumulativeNewBorrowings | SecuritiesTimesB12,ShanghaiSecuritiesNews76etc. | |
| 2019-12 | 21February2019 | AnnouncementontheResolutionofthe1stExtraordinaryGeneralMeetingof2019 | SecuritiesTimesB42,ShanghaiSecuritiesNews40etc. | |
| 2019-13 | 14March2019 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB28,ShanghaiSecuritiesNews56etc. |
| 2019-14 | 19March2019 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB92,ShanghaiSecuritiesNews92etc. |
| 2019-15 | 19March2019 | AnnouncementonVolunteerInformationDisclosureofPre-winningtheBidforProject | SecuritiesTimesB92,ShanghaiSecuritiesNews92etc. |
| 2019-16 | 19March2019 | AnnouncementonAbnormalVolatilityofStockTrading | SecuritiesTimesB116,ShanghaiSecuritiesNews40etc. |
| 2019-17 | 19March2019 | IndicativeAnnouncementonPlanningofPrivatePlacementofShares | SecuritiesTimesB116,ShanghaiSecuritiesNews40etc. |
| 2019-18 | 21March2019 | AnnouncementonOfferingOverseasLoanunderDomesticGuaranteetoForeignWholly-ownedSubsidiary | SecuritiesTimesB29,ShanghaiSecuritiesNews48etc. |
| 2019-19 | 28March2019 | AnnouncementonVolunteerInformationDisclosureofPre-winningtheBidforProject | SecuritiesTimesB33,ShanghaiSecuritiesNews40etc. |
| 2019-20 | 29March2019 | AnnouncementonInformationDisclosureofVoluntarinessofReceivingLetterofAcceptance | SecuritiesTimesB128,ShanghaiSecuritiesNews428etc. |
| 2019-21 | 30March2019 | AnnouncementontheAbstractofthe2018AnnualReport | SecuritiesTimesB41,ShanghaiSecuritiesNews529etc. |
| 2019-22 | 30March2019 | Announcementonthe2018AnnualReport | |
| 2019-23 | 30March2019 | AnnouncementontheResolutionofthe7thMeetingofthe9thBoardofDirectors | SecuritiesTimesB41,ShanghaiSecuritiesNews529etc. |
| 2019-24 | 30March2019 | AnnouncementontheResolutionofthe2ndMeetingofthe9thSupervisoryCommittee | SecuritiesTimesB41,ShanghaiSecuritiesNews529etc. |
| 2019-25 | 30March2019 | AnnouncementonExternalGuarantees | SecuritiesTimesB42,ShanghaiSecuritiesNews529etc. |
| 2019-26 | 30March2019 | AnnouncementontheChangesofPartofAccountingPolicies | SecuritiesTimesB42,ShanghaiSecuritiesNews530etc. |
| 2019-27 | 30March2019 | AnnouncementontheExpectationofthe2019RoutineRelatedTransaction | SecuritiesTimesB43,ShanghaiSecuritiesNews530etc. |
| 2019-28 | 30March2019 | AnnouncementonInvolvingNumberofSubscriptorsafterPenetrationofSubscriptorsforPrivatePlacementofA-shares | SecuritiesTimesB42,ShanghaiSecuritiesNews530etc. |
| 2019-29 | 30March2019 | AnnouncementonRiskWarningsofDilutionofImmediateReturnsbyPrivatePlacementofA-sharesandCompensationMeasures | SecuritiesTimesB42,ShanghaiSecuritiesNews530etc. |
| 2019-30 | 30March2019 | AnnouncementonInvolvingRelated-partyTransactionsforPrivatePlacementofA-shares | SecuritiesTimesB42,ShanghaiSecuritiesNews530etc. |
| 2019-31 | 30March2019 | ExplanationonNoNeedtoPreparationofSpecialReportonUseofPreviousRaisedFunds | SecuritiesTimesB43,ShanghaiSecuritiesNews530etc. |
| 2019-32 | 30March2019 | AnnouncementonConditionalShareSubscriptionAgreementSignedbytheCompanywiththeSubscriptor | SecuritiesTimesB43,ShanghaiSecuritiesNews530etc. |
| 2019-33 | 30March2019 | AnnouncementonParticularsaboutSupervisionMeasuresTakenbyandPunishmentsMadebySecuritiesSupervisionDepartmentsfortheFiveYears | SecuritiesTimesB43,ShanghaiSecuritiesNews530etc. |
| 2019-34 | 8April2019 | AnnouncementonVolunteerInformationDisclosureofProjectPre-concluded | SecuritiesTimesB45,ShanghaiSecuritiesNews60etc. |
| 2019-35 | 12April2019 | Announcementonthe2019FirstQuarterEarningsForecasts | SecuritiesTimesB48,ShanghaiSecuritiesNews40etc. |
| 2019-36 | 12April2019 | AnnouncementonPlannedListingtoTransferPartialSharesofKonkaE-display | SecuritiesTimesB48,ShanghaiSecuritiesNews40etc. |
| 2019-36 | 20April2019 | AnnouncementontheResolutionofthe8thMeetingofthe9thBoardofDirectors | SecuritiesTimesB64,ShanghaiSecuritiesNews84etc. |
| 2019-37 | 20April2019 | NoticeonConveningthe2018AnnualGeneralMeeting | SecuritiesTimesB64,ShanghaiSecuritiesNews84etc. |
| 2019-38 | 27April2019 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB116,ShanghaiSecuritiesNews108etc. |
| 2019-39 | 30April2019 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB233,ShanghaiSecuritiesNews616etc. |
| 2019-40 | 30April2019 | 2019FirstQuarterReport | SecuritiesTimesB233,ShanghaiSecuritiesNews616etc. |
| 2019-41 | 30April2019 | Textofthe2019FirstQuarterReport | SecuritiesTimesB233,ShanghaiSecuritiesNews616etc. |
| 2019-42 | 30April2019 | AnnouncementontheResolutionofthe9thMeetingofthe9thBoardofDirectors | SecuritiesTimesB233,ShanghaiSecuritiesNews616etc. |
| 2019-43 | 30April2019 | AnnouncementonEstablishmentofHaimenHeadquartersforEasternChinathroughInvestment | SecuritiesTimesB233,ShanghaiSecuritiesNews616etc. |
| 2019-44 | 7May2019 | AnnouncementonInformationDisclosureofVoluntarinessofReceivingLetterofAcceptance | SecuritiesTimesB60,ShanghaiSecuritiesNews60etc. |
| 2019-45 | 7May2019 | AnnouncementonProgressofPlannedListingtoTransferSharesofKonkaE-display | SecuritiesTimesB60,ShanghaiSecuritiesNews60etc. |
| 2019-46 | 14May2019 | AnnouncementontheResolutionofthe2018AnnualGeneralMeeting | SecuritiesTimesB85,ShanghaiSecuritiesNews85etc. |
| 2019-47 | 17May2019 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB85,ShanghaiSecuritiesNews85etc. |
| 2019-48 | 21May2019 | AnnouncementontheResolutionofthe10thMeetingofthe9thBoardofDirectors | SecuritiesTimesB64,ShanghaiSecuritiesNews60etc. |
| 2019-49 | 21May2019 | AnnouncementonEstablishmentofEnvironmentalProtectionBusinessIndustrialParkthroughInvestment | SecuritiesTimesB64,ShanghaiSecuritiesNews60etc. |
| 2019-50 | 23May2019 | AnnouncementonCSRC’sAcceptanceforApplicationofPrivatePlacementofShares | SecuritiesTimesB27,ShanghaiSecuritiesNews44etc. |
| 2019-51 | 28May2019 | AnnouncementonVolunteerInformationDisclosureofPre-winningtheBidforProject | SecuritiesTimesB88,ShanghaiSecuritiesNews69etc. |
| 2019-52 | 4June2019 | AnnouncementonInformationDisclosureofVoluntarinessofReceivingLetterofAcceptance | SecuritiesTimesB71,ShanghaiSecuritiesNews48etc. |
| 2019-53 | 5June2019 | AnnouncementonResultofPrivatePlacementofCorporateBondsin2019(PhaseII) | SecuritiesTimesB44,ShanghaiSecuritiesNews44etc. |
| 2019-54 | 11June2019 | AnnouncementontheResolutionofthe11thMeetingofthe9thBoardofDirectors | SecuritiesTimesB42,ShanghaiSecuritiesNews49etc. |
| 2019-55 | 11June2019 | AnnouncementonTransferof51%EquityInterestsofChuzhouKonkaTechnology&IndustryDevelopmentCo.,Ltd.andRelated-partyTransactions | SecuritiesTimesB42,ShanghaiSecuritiesNews49etc. |
| 2019-56 | 11June2019 | AnnouncementontheProgressofOfferingGuaranteestotheSubsidiary | SecuritiesTimesB42,ShanghaiSecuritiesNews49etc. |
| 2019-57 | 14June2019 | AnnouncementonCooperationAgreementSignedwithBishanGovernmentofChongqingProvince | SecuritiesTimesB4,ShanghaiSecuritiesNews120etc. |
| 2019-58 | 18June2019 | AnnouncementonListingtoTransferPartialSharesofKonkaE-display | SecuritiesTimesB61,ShanghaiSecuritiesNews33etc. |
| 2019-59 | 25June2019 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB40,ShanghaiSecuritiesNews52etc. |
| 2019-60 | 25June2019 | AnnouncementonReceiptofCSRC’sNoticeontheFirstFeedbackforReviewofAdministrativePermissionProjects | SecuritiesTimesB40,ShanghaiSecuritiesNews52etc. |
| 2019-61 | 25June2019 | AnnouncementonCompletionofRegistrationChangingProceduresforTransferofPartialEquityofKonkaE-display | SecuritiesTimesB43,ShanghaiSecuritiesNews52etc. |
| 2019-62 | 25June2019 | AnnouncementonCompletionofRegistrationChangingProceduresforTransferof51%EquityInterestsofChuzhouKonkaTechnology&IndustryDevelopmentCo.,Ltd. | SecuritiesTimesB43,ShanghaiSecuritiesNews52etc. |
| 2019-63 | 25June2019 | AnnouncementonPendingLawsuitsandArbitrationswithlargeamount | SecuritiesTimesB102,ShanghaiSecuritiesNews76etc. |
| 2019-64 | 27June2019 | AnnouncementontheImplementationofDividendPlanof2018 | SecuritiesTimesB91,ShanghaiSecuritiesNews29etc. |
| 2019-65 | 28June2019 | AnnouncementontheProgressofOfferingGuaranteestotheSubsidiary | SecuritiesTimesB128,ShanghaiSecuritiesNews36etc. |
| 2019-66 | 29June2019 | AnnouncementonWholly-ownedSubsidiary’receivingoftheGovernmentSubsidies | SecuritiesTimesB95,ShanghaiSecuritiesNews80etc. |
| 2019-67 | 10July2019 | AnnouncementonVolunteerInformationDisclosureofTerminatingParticipatinginthePPPProjectof | SecuritiesTimesB32,ShanghaiSecuritiesNews76etc. |
| TaichengWaterEcologicalEnvironmentManagement | |||
| 2019-68 | 10July2019 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB32,ShanghaiSecuritiesNews76etc. |
| 2019-69 | 19July2019 | AnnouncementontheProgressofOfferingGuaranteestotheSubsidiary | SecuritiesTimesB49,ShanghaiSecuritiesNews272etc. |
| 2019-70 | 24July2019 | AnnouncementontheIssuanceResultofthePrivatePlacementofCorporateBonds(PhaseIII)in2019 | SecuritiesTimesB31,ShanghaiSecuritiesNews40etc. |
| 2019-71 | 27July2019 | AnnouncementonOfferingOverseasLoanunderDomesticGuaranteetoForeignWholly-ownedSubsidiary | SecuritiesTimesB12,ShanghaiSecuritiesNews44etc. |
| 2019-72 | 30July2019 | AnnouncementonReceivingtheNoticeonSuspendingtheReviewoftheApplicationforAdministrationPermissionofChinaSecuritiesRegulatoryCommission | SecuritiesTimesB21,ShanghaiSecuritiesNews52etc. |
| 2019-73 | 1August2019 | AnnouncementonApplyingforResumingReviewofPrivatePlacementofA-stocktoChinaSecuritiesRegulatoryCommission | SecuritiesTimesB32,ShanghaiSecuritiesNews41etc. |
| 2019-74 | 1August2019 | AnnouncementontheProgressofOfferingGuaranteestotheWholly-ownedSubsidiary | SecuritiesTimesB32,ShanghaiSecuritiesNews41etc. |
| 2019-75 | 7August2019 | AnnouncementontheAbstractofthe2019InterimReport | SecuritiesTimesB62,ShanghaiSecuritiesNews28etc. |
| 2019-76 | 7August2019 | Announcementonthe2019InterimReport | |
| 2019-77 | 7August2019 | AnnouncementonResolutionsofthe14thMeetingofthe9thBoardofDirectors | SecuritiesTimesB62,ShanghaiSecuritiesNews28etc. |
| 2019-78 | 10August2019 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB44,ShanghaiSecuritiesNews24etc. |
| 2019-79 | 27August2019 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB70,ShanghaiSecuritiesNews501etc. |
| 2019-80 | 30August2019 | AnnouncementonParticipatinginthe2019OnlineCollectiveReceptionDayforInvestorsofShenzhenListedCompaniesin2019 | SecuritiesTimesB107,ShanghaiSecuritiesNews104etc. |
| 2019-81 | 10September2019 | AnnouncementonReceivingtheNoticeonResumingReviewofApplicationforAdministrationPermissionofChinaSecuritiesRegulatoryCommission | SecuritiesTimesB39,ShanghaiSecuritiesNews60etc. |
| 2019-82 | 18September2019 | AnnouncementonResolutionsofthe15thMeetingofthe9thBoardofDirectors | SecuritiesTimesB62,ShanghaiSecuritiesNews33etc. |
| 2019-83 | 18September2019 | AnnouncementonTransferof51%ofEquityinChuzhouKangjinHealthIndustryDevelopmentCo.,Ltd.andRelated-partyTransactions | SecuritiesTimesB62,ShanghaiSecuritiesNews33etc. |
| 2019-84 | 18September2019 | AnnouncementonOfferingFinancialAidforChuzhouKangjinCompanyBasedontheShareholdingRatioandRelated-partyTransactions | SecuritiesTimesB62,ShanghaiSecuritiesNews33etc. |
| 2019-85 | 18September2019 | AnnouncementonOfferingFinancialAidforK-StarCompanyBasedontheShareholdingRatio | SecuritiesTimesB62,ShanghaiSecuritiesNews33etc. |
| 2019-86 | 18September2019 | AnnouncementontheProjectofBuildingtheKonkaSemiconductorOptoelectronicsResearchInstitutethroughinvestmentinChongqingCity | SecuritiesTimesB62,ShanghaiSecuritiesNews33etc. |
| 2019-87 | 18September2019 | AnnouncementonthePrivatePlacementofCorporateBondProgrammingbytheCompany | SecuritiesTimesB62,ShanghaiSecuritiesNews33etc. |
| 2019-88 | 18September2019 | NoticeonConveningthe2ndExtraordinaryGeneralMeetingof2019 | SecuritiesTimesB62,ShanghaiSecuritiesNews33etc. |
| 2019-89 | 27September2019 | AnnouncementonCompletingtheIndustrialandCommercialRegistrationofChangesforTransferof51%ofEquityinChuzhouKangjinHealthIndustryDevelopmentCo.,Ltd. | SecuritiesTimesB27,ShanghaiSecuritiesNews77etc. |
| 2019-90 | 8October2019 | AnnouncementonReceivingGovernmentSubsidiesbytheWholly-ownedSubsidiary | SecuritiesTimesB73,ShanghaiSecuritiesNews116etc. |
| 2019-91 | 9October2019 | AnnouncementonResolutionsofthe2ndExtraordinaryGeneralMeetingof2019 | SecuritiesTimesB72,ShanghaiSecuritiesNews84etc. |
| 2019-92 | 9October2019 | AnnouncementonProgressofExternalInvestments | SecuritiesTimesB72,ShanghaiSecuritiesNews84etc. |
| 2019-93 | 11October2019 | AnnouncementonProgressofGuarantees | SecuritiesTimesB22,ShanghaiSecuritiesNews52etc. |
| 2019-94 | 23October2019 | AnnouncementonResolutionsofthe17thMeetingofthe9thBoardofDirectors | SecuritiesTimesB30,ShanghaiSecuritiesNews85etc. |
| 2019-95 | 23October2019 | AnnouncementonChangeinEngagementofCPAs | SecuritiesTimesB30,ShanghaiSecuritiesNews85etc. |
| 2019-96 | 23October2019 | AnnouncementonConductingFinancingLeaseBusinessandRelated-partyTransactions | SecuritiesTimesB30,ShanghaiSecuritiesNews85etc. |
| 2019-97 | 23October2019 | AnnouncementonTransferofPartialEquityinHaimenKangjianCompanybyListing | SecuritiesTimesB30,ShanghaiSecuritiesNews85etc. |
| 2019-98 | 23October2019 | AnnouncementonOfferingFinancialAidforHaimenKangjianCompanyBasedontheShareholdingRatio | SecuritiesTimesB30,ShanghaiSecuritiesNews85etc. |
| 2019-99 | 23October2019 | NoticeonConveningthe3rdExtraordinaryGeneralMeetingof2019 | SecuritiesTimesB30,ShanghaiSecuritiesNews85etc. |
| 2019-100 | 23October2019 | AnnouncementonOfferingGuaranteestotheCompanyastheParentbytheWholly-ownedSubsidiary | SecuritiesTimesB30,ShanghaiSecuritiesNews85etc. |
| 2019-101 | 31October2019 | Textofthe2019ThirdQuarterReport | SecuritiesTimesB71,ShanghaiSecuritiesNews84etc. |
| 2019-102 | 31October2019 | 2019ThirdQuarterReport | |
| 2019-103 | 2November2019 | AnnouncementonTransferofPartialEquityinShenzhenKangyueCompanybyListing | SecuritiesTimesB27,ShanghaiSecuritiesNews41etc. |
| 2019-104 | 2November2019 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB27,ShanghaiSecuritiesNews41etc. |
| 2019-105 | 8November2019 | AnnouncementonSigningStrategicCooperationAgreementbytheMajority-ownedSubsidiary | SecuritiesTimesB31,ShanghaiSecuritiesNews72etc. |
| 2019-106 | 8November2019 | AnnouncementonResolutionsofthe3rdExtraordinaryGeneralMeetingof2019 | SecuritiesTimesB31,ShanghaiSecuritiesNews72etc. |
| 2019-107 | 21November2019 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB26,ShanghaiSecuritiesNews65etc. |
| 2019-108 | 26November2019 | AnnouncementonOfferingFinancialAidforYantaiKangyueCompanyBasedontheShareholdingRatio | SecuritiesTimesB58,ShanghaiSecuritiesNews100etc. |
| 2019-109 | 26November2019 | AnnouncementonChangesofSomeAccountingPolicies | SecuritiesTimesB58,ShanghaiSecuritiesNews100etc. |
| 2019-110 | 26November2019 | AnnouncementonOfferingAdvertizingServicesforOCTGroupandRelated-partyTransactions | SecuritiesTimesB58,ShanghaiSecuritiesNews100etc. |
| 2019-111 | 26November2019 | AnnouncementontheProjectofBuildinganEnvironmentalTechnologyTownthroughInvestmentinYantaiCity | SecuritiesTimesB58,ShanghaiSecuritiesNews100etc. |
| 2019-112 | 26November2019 | NoticeonConveningthe4thExtraordinaryGeneralMeetingof2019 | SecuritiesTimesB58,ShanghaiSecuritiesNews100etc. |
| 2019-113 | 26November2019 | AnnouncementonResolutionsofthe19thMeetingofthe9thBoardofDirectors | SecuritiesTimesB58,ShanghaiSecuritiesNews100etc. |
| 2019-114 | 26November2019 | AnnouncementonInvestmentintheProjectofClosedBetaofMemoryChips | SecuritiesTimesB63,ShanghaiSecuritiesNews100etc. |
| 2019-115 | 27November2019 | SupplementaryNoticeonConveningthe4thExtraordinaryGeneralMeetingof2019 | SecuritiesTimesB57,ShanghaiSecuritiesNews63etc. |
| 2019-116 | 28November2019 | AnnouncementonOfferingOverseasLoanunderDomesticGuaranteetoForeignWholly-ownedSubsidiary | SecuritiesTimesB32,ShanghaiSecuritiesNews52etc. |
| 2019-117 | 3December2019 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB100,ShanghaiSecuritiesNews80etc. |
| 2019-118 | 12December2019 | AnnouncementontheProgressofOfferingGuaranteestotheWholly-ownedSubsidiary | SecuritiesTimesB26,ShanghaiSecuritiesNews84etc. |
| 2019-119 | 17December2019 | AnnouncementonResolutionsofthe4thExtraordinaryGeneralMeetingof2019 | SecuritiesTimesB58,ShanghaiSecuritiesNews96etc. |
| 2019-120 | 19December2019 | AnnouncementonProgressofTransferofPartialEquityinHaimenKangjianCompanybyListing | SecuritiesTimesB46,ShanghaiSecuritiesNews92etc. |
| 2019-121 | 26December2019 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB46,ShanghaiSecuritiesNews29etc. |
| 2019-122 | 27December2019 | AnnouncementonReceivingGovernmentSubsidiesbytheMajority-ownedSubsidiary | SecuritiesTimesB43,ShanghaiSecuritiesNews52etc. |
| 2019-123 | 27December2019 | AnnouncementonProgressofTransferofPartialEquityinShenzhenKangqueCompanybyListing | SecuritiesTimesB43,ShanghaiSecuritiesNews52etc. |
XXSignificantEventsofSubsidiaries
□Applicable√Notapplicable
PartVIShareChangesandShareholderInformationI.ShareChanges
1.ShareChanges
Unit:share
| Before | Increase/decreaseintheReportingPeriod(+/-) | After | |||||||
| Shares | Percentage(%) | Newissues | Sharesasdividendconvertedfromprofit | Sharesasdividendconvertedfromcapitalreserves | Other | Subtotal | Shares | Percentage(%) | |
| 1.Restrictedshares | 19,500 | 0.00% | 19,500 | 0.00% | |||||
| 1.3Sharesheldbyotherdomesticinvestors | 19,500 | 0.00% | 19,500 | 0.00% | |||||
| Sharesheldbydomesticnaturalpersons | 19,500 | 0.00% | 19,500 | 0.00% | |||||
| 2.Unrestrictedshares | 2,407,925,908 | 100.00% | 2,407,925,908 | 100.00% | |||||
| 2.1RMB-denominatedordinaryshares | 1,596,574,300 | 66.31% | 1,596,574,300 | 66.31% | |||||
| 2.2Domesticallylistedforeignshares | 811,351,608 | 33.69% | 811,351,608 | 33.69% | |||||
| 3.Totalshares | 2,407,945,408 | 100.00% | 2,407,945,408 | 100.00% | |||||
Reasonsforsharechanges:
□Applicable√NotapplicableApprovalofsharechanges:
□Applicable√NotapplicableTransferofshareownership:
□Applicable√NotapplicableProgressonanysharerepurchases:
□Applicable√NotapplicableProgressonreducingtherepurchasedsharesbymeansofcentralizedbidding:
□Applicable√NotapplicableEffectsofsharechangesonthebasicanddilutedearningspershare,equitypershareattributabletotheCompany’sordinaryshareholdersandotherfinancialindicatorsoftheprioryearandtheprioraccountingperiod,respectively:
□Applicable√Notapplicable
OtherinformationthattheCompanyconsidersnecessaryorisrequiredbythesecuritiesregulatortobedisclosed:
□Applicable√Notapplicable
2.ChangesinRestrictedShares
□Applicable√NotapplicableII.IssuanceandListingofSecurities
1.Securities(ExclusiveofPreferredShares)IssuedintheReportingPeriod
□Applicable√Notapplicable
2.ChangestoTotalShares,ShareholderStructureandAssetandLiabilityStructures
□Applicable√Notapplicable
3.ExistingStaff-HeldShares
□Applicable√NotapplicableIIIShareholdersandActualController
1.ShareholdersandTheirShareholdingsatthePeriod-End
Unit:share
| Numberofordinaryshareholders | 91,244 | Numberofordinaryshareholdersatthemonth-endpriortothedisclosureofthisReport | 162,694 | Numberofpreferredshareholderswithresumedvotingrights(ifany)(seenote8) | 0 | Numberofpreferredshareholderswithresumedvotingrightsatthemonth-endpriortothedisclosureofthisReport(ifany)(seenote8) | 0 | ||||||
| 5%orgreatershareholdersortop10shareholders | |||||||||||||
| Nameofshareholder | Natureofshareholder | Shareholdingpercentage | Totalsharesheldattheperiod-end | Increase/decreaseintheReportingPeriod | Restrictedsharesheld | Unrestrictedsharesheld | Sharesinpledgeorfrozen | ||||||
| Status | Shares | ||||||||||||
| OVERSEASCHINESETOWNENTERPRISESCO.,LTD | State-ownedlegalperson | 21.75% | 523,746,932 | 0 | 0 | 523,746,932 | |||||||
| CITICSECURITIESBROKERAGE(HONGKONG)CO.,LTD. | Foreignlegalperson | 7.56% | 182,100,202 | 0 | 0 | 182,100,202 | |||||||
| HOLYTIMEGROUPLIMITED | Foreignlegalperson | 2.33% | 56,139,100 | 0 | 0 | 56,139,100 | |||||||
| GUOYUANSECURITIESBROKER(HK)CO.,LTD. | Foreignlegalperson | 2.25% | 54,203,779 | 0 | 0 | 54,203,779 | |||||||
| GAOLINGFUND,L.P. | Foreignlegalperson | 2.19% | 52,801,250 | 0 | 0 | 52,801,250 | |||||||
| CHINAMERCHANTSSECURITIES(HK)LIMITED | State-ownedlegalperson | 0.95% | 22,994,024 | 518,900 | 0 | 22,994,024 | |||||||
| HongKongSecuritiesClearingCompanyLtd. | Foreignlegalperson | 0.89% | 21,357,425 | 11,545,764 | 0 | 21,357,425 | |||
| NAMNGAI | Foreignnaturalperson | 0.88% | 21,207,340 | -504,800 | 0 | 21,207,340 | |||
| NationalSocialSecurityFindPortfolio118 | Other | 0.88% | 21,099,537 | 4,000,000 | 0 | 21,099,537 | |||
| ChenWeiqin | domesticnaturalperson | 0.69% | 16,656,822 | 0 | 0 | 16,656,822 | |||
| Strategicinvestororgenerallegalpersonbecomingatop-10ordinaryshareholderduetorightsissue(ifany)(seenote3) | N/A | ||||||||
| Relatedoracting-in-concertpartiesamongtheshareholdersabove | HappyBloomInvestmentLimited,awholly-ownedsubsidiaryoftheCompany’sfirstmajorityshareholderOverseasChineseTownEnterprisesCo.(“OCTGroup”forshort),holds180,001,110and18,360,000ordinarysharesintheCompanyrespectivelythroughCITICSecuritiesBrokerage(HongKong)Co.,Ltd.andChinaMerchantsSecurities(HK)Limited.HappyBloomInvestmentLimitedandOverseasChineseTownEnterprisesCo.arepartiesactinginconcert.Otherthanthat,itisunknownwhethertheothershareholdersarerelatedpartiesoracting-in-concertpartiesornot. | ||||||||
| Top10unrestrictedshareholders | |||||||||
| Nameofshareholder | Unrestrictedsharesheldattheperiod-end | Sharesbytype | |||||||
| Type | Shares | ||||||||
| OVERSEASCHINESETOWNENTERPRISESCO.,LTD | 523,746,932 | RMB-denominatedordinarystock | 523,746,932 | ||||||
| CITICSECURITIESBROKERAGE(HONGKONG)CO.,LTD. | 182,100,202 | Domesticallylistedforeignstock | 182,100,202 | ||||||
| HOLYTIMEGROUPLIMITED | 56,139,100 | Domesticallylistedforeignstock | 56,139,100 | ||||||
| GUOYUANSECURITIESBROKER(HK)CO.,LTD. | 54,203,779 | Domesticallylistedforeignstock | 54,203,779 | ||||||
| GAOLINGFUND,L.P. | 52,801,250 | Domesticallylistedforeignstock | 52,801,250 | ||||||
| CHINAMERCHANTSSECURITIES(HK)LIMITED | 22,994,024 | Domesticallylistedforeignstock | 22,994,024 | ||||||
| HongKongSecuritiesClearingCompanyLtd. | 21,357,425 | RMB-denominatedordinarystock | 21,357,425 |
| NAMNGAI | 21,207,340 | Domesticallylistedforeignstock | 21,207,340 |
| NationalSocialSecurityFindPortfolio118 | 21,099,537 | RMB-denominatedordinarystock | 21,099,537 |
| ChenWeiqin | 16,656,822 | RMB-denominatedordinarystock | 16,656,822 |
| Relatedoracting-in-concertpartiesamongtop10unrestrictedpublicshareholders,aswellasbetweentop10unrestrictedpublicshareholdersandtop10shareholders | HappyBloomInvestmentLimited,awholly-ownedsubsidiaryoftheCompany’sfirstmajorityshareholderOverseasChineseTownEnterprisesCo.(“OCTGroup”forshort),holds180,001,110and18,360,000commonsharesintheCompanyrespectivelythroughCITICSecuritiesBrokerage(HongKong)Co.,Ltd.andChinaMerchantsSecurities(HK)Limited.HappyBloomInvestmentLimitedandOverseasChineseTownEnterprisesCo.arepartiesactinginconcert.Otherthanthat,itisunknownwhethertheothershareholdersarerelatedpartiesoracting-in-concertpartiesornot. | ||
| Top10ordinaryshareholdersinvolvedinsecuritiesmargintrading(ifany)(seenote4) | ChenWeiqinholds16,656,822A-sharesintheCompanythroughhissecuritiesaccountforcustomercredittradingguaranteeinCITICSecuritiesCompanyLimited. | ||
Indicatebytickmarkwhetheranyofthetop10ordinaryshareholdersorthetop10unrestrictedordinaryshareholdersoftheCompanyconductedanypromissoryrepoduringtheReportingPeriod.
□Yes√NoNosuchcasesintheReportingPeriod.
2.ControllingShareholderNatureofthecontrollingshareholder:Controlledbyacentralstate-ownedlegalpersonTypeofthecontrollingshareholder:legalperson
| Nameofactualcontroller | Legalrepresentative/personincharge | Dateofestablishment | Unifiedsocialcreditcode | Principalactivity |
| OverseasChineseTownEnterprisesCo. | DuanXiannian | 11November1985 | 91440300190346175T | Exportoftextile,lightindustrialproducts,etc;importofself-usedgoodsinShenzhen,mechanicalequipment,lightindustrialproducts,etc.asapprovedbytherelevantauthoritiesofShenzhen(underGovernmentDocumentJMB[92]WJMGTSZZNo.A19024);compensationtrade;investmentintourismandrelevantculturalindustry(includingartperformance,entertainmentandtheirservices,etc),industry,realestate,commerce&trade,packaging,decorationandinvestmentinprintingindustry.Theconvertofexportcommoditiesintodomesticsaleandthedomesticsalesofimportcommodities.Travelling,rentalofwarehouses,cultureandart,bondedwarehouseofcardonation,conventionandexhibitionservices(theprojectsinvolvedinlicensemanagementcanbeoperatedaftergettingtherelevantlicensefirst);salesofautomobile(sedancarincluded) |
| Controllingshareholder’sholdingsinotherlistedcompaniesathomeorabroadintheReportingPeriod | Asof31December2019,OverseasChineseTownEnterprisesCo.held47.01%equityofShenzhenOverseasChineseTownCo.,Ltd.(acompanylistedonthemainBoardofShenzhenStockExchange,SZ.000069).Meanwhile,ShenzhenOverseasChineseTownCo.,Ltd.indirectlyheld70.94%equityofOCT(Asia)HoldingsLtd.(acompanylistedonthemainBoardofHongKongStockExchange,3366.HK).OverseasChineseTownEnterprisesCo.directlyheld18.14%equityofYunnanTourismCo.,Ltd.(acompanylistedontheSMEBoardofShenzhenStockExchange,SZ.002059)andindirectlyheld35.74%equityofYunnanTourismCo.,LtdthroughincreasingcapitaltoYunnanExpoTourismGroupHoldings.,Ltd.OverseasChineseTownEnterprisesCo.held8%equityofChinaEverbrightBankCompanyLimited(acompanylistedonthemainBoardofShanghaiStockExchange(SH.601818)andthemainBoardofHongKongStockExchange(6818.HK).OverseasChineseTownEnterprisesCo.indirectlyheld2.85%equityofZhejiangCenturyHuatongGroupCo.,Ltd.(acompanylistedonthemainBoardofShenzhenStockExchange,SZ.002602)throughitssubsidiaryShenzhenOCTCapitalInvestmentManagementCo.,Ltd.OverseasChineseTownEnterprisesCo.indirectlyheld35.60%equityofOCTTop-SightCulturalGroupCo.,Ltd.(acompanylistedonNationalEquitiesExchangeandQuotations,834548.OC)throughitssubsidiaryShenzhenOCTCulturalGroupCo.,Ltd.OverseasChineseTownEnterprisesCo.indirectlyheld80.00%equityofJianmenguanOctTourismDevelopmentCo.,Ltd(acompanylistedonNationalEquitiesExchangeandQuotations,871381.OC)thoughitssubsidiaryOCTWestInvestmentCo.,Ltd. |
ChangeofthecontrollingshareholderintheReportingPeriod:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
3.ActualControllerandItsActing-in-ConcertPartiesNatureoftheactualcontroller:Centralinstitutionforstate-ownedassetsmanagementTypeoftheactualcontroller:legalperson
| Nameofactualcontroller | Legalrepresentative/personincharge | Dateofestablishment | Unifiedsocialcreditcode | Principalactivity |
| State-ownedAssetsSupervisionandAdministrationCommissionoftheStateCouncil | HaoPeng | Notapplicable | Notapplicable | |
| Actualcontroller’sholdingsinotherlistedcompaniesathomeorabroadintheReportingPeriod | Notapplicable | |||
ChangeoftheactualcontrollerduringtheReportingPeriod:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.OwnershipandcontrolrelationsbetweentheactualcontrollerandtheCompany:
IndicatebytickmarkwhethertheactualcontrollercontrolstheCompanyviatrustorotherwaysofassetmanagement.
□Applicable√Notapplicable
4.Other10%orGreaterCorporateShareholders
□Applicable√Notapplicable
5.LimitationsonShareholdingDecreasebytheCompany’sControllingShareholder,ActualController,ReorganizerandOtherCommitmentMakers
□Applicable√Notapplicable
PartVIIPreferredShares
□Applicable√NotapplicableNopreferredsharesintheReportingPeriod.
PartVIIIConvertibleCorporateBonds
□Applicable√NotapplicableNoconvertiblecorporatebondsintheReportingPeriod.
PartIXDirectors,Supervisors,SeniorManagementandStaffIChangeinShareholdingsofDirectors,SupervisorsandSeniorManagement
| Name | Officetitle | Incumbent/Former | Gender | Age | Startoftenure | Endoftenure | Beginningshareholding | IncreaseintheReportingPeriod | DecreaseintheReportingPeriod | Otherincrease/decrease | Endingshareholding |
| LiuFengxi | Director,ChairmanoftheBoard | Incumbent | Male | 48 | 3December2018 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
| HeHaibin | Director | Incumbent | Male | 46 | 3December2018 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
| ZhangJing | Director | Incumbent | Male | 38 | 3December2018 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
| ZhouBin | Director | Incumbent | Male | 41 | 3December2018 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
| SunShengdian | Independentdirector | Incumbent | Male | 65 | 3December2018 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
| WangShuguang | Independentdirector | Incumbent | Male | 49 | 3December2018 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
| DengChunhua | Independentdirector | Incumbent | Female | 57 | 3December2018 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
| WangYoulai | Supervisor,chairmanoftheSupervisoryCommittee | Incumbent | Male | 59 | 3December2018 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
| YangGuobin | Supervisor | Incumbent | Male | 51 | 3December2018 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
| LiJun | Supervisor | Incumbent | Male | 49 | 29November2018 | 3December2021 | 0 | 0 | 0 | 0 | 0 |
| ZhouBin | President | Incumbent | Male | 41 | 10March2017 | 27March2023 | 0 | 0 | 0 | 0 | 0 |
| LiHongtao | Vicepresident | Incumbent | Male | 52 | 10March2017 | 27March2023 | 0 | 0 | 0 | 0 | 0 |
| WuYongjun | BoardSecretary | Incumbent | Male | 45 | 10March2017 | 27March2023 | 0 | 0 | 0 | 0 | 0 |
| LiChunlei | CFO | Incumbent | Male | 47 | 10March2017 | 27March2023 | 0 | 0 | 0 | 0 | 0 |
| YangBo | Vicepresident | Incumbent | Male | 50 | 10March2017 | 27March2023 | 0 | 0 | 0 | 0 | 0 |
| CaoShiping | Vicepresident | Incumbent | Male | 42 | 10March2017 | 27March2023 | 0 | 0 | 0 | 0 | 0 |
| SunQingyan | Vicepresident | Incumbent | Male | 48 | 18April2017 | 27March2023 | 26,000 | 0 | 0 | 0 | 26,000 |
| HeJianjun | Vicepresident | Former | Male | 50 | 10March2017 | 13January2020 | 0 | 0 | 0 | 0 | 0 |
| Total | -- | -- | -- | -- | -- | -- | 26,000 | 0 | 0 | 0 | 26,000 |
IIChangeofDirectors,SupervisorsandSeniorManagement
√Applicable□Notapplicable
| Name | Officetitle | Typeofchange | Dateofchange | Reasonforchange |
| HeJianjun | Vicepresident | Expired | 13January2020 | Resignforjobchange |
IIIBiographicalInformationProfessionalbackgrounds,majorworkexperienceandcurrentdutiesintheCompanyoftheincumbentdirectors,supervisorsandseniormanagement:
1.DirectorLiuFengxi,male,bornin1972,wastheChairmanoftheBoardwithamasterdegree.HeonceworkedasthemarketingGMforthemulti-mediadivisionofKonkaGroup,AssistantGMandthen
ViceGMofShenzhenKonkaTelecommunicationsTechnologyCo.,Ltd.,ChiefoftheOperationManagementCenterofKonkaGroup,AssistanttoPresidentandVicePresidentofKonkaGroup,etc.AndnowheisactingasthememberoftheStandingCommitteeandDeputyGMofOCTGroup,DirectorandGMofShenzhenKonkaHoldingGroupCo.,Ltd.aswellastheBoardChairmanandCEOofKonkaGroup.HeHaibin,male,bornin1974,asenioraccountant,wasadirectoroftheCompanywithamasterdegree.HeonceworkedastheChiefofAuditDepartmentandFinancialDepartmentinOverseasChineseTownGroupCorporation,asPrincipalofFinanceinPlanningDepartmentoftheCrownePlazaShenzhen,asCFOinShenzhenOCTSeaviewHotelCo.,Ltd.,asCFOinInterContinentalShenzhen,asViceCFOinOverseasChineseTownGroupCorporationandasCFOinOverseasChineseTownHongKongLimited,GMofOCTCapitalInvestmentManagementCo.,Ltd.,theChiefAccountantofShenzhenOCTCo.,Ltd.,andChiefofBusinessManagementDivisioninOverseasChineseTownEnterprisesCo.etc.NowheservesastheStandingCommitteeandBoardSecretarytheChiefAccountantofOverseesChineseTownGroupCorporation,andtheChairmanoftheBoardofShenzhenOCTCapitalInvestmentManagementCo.,Ltd,directorofOCT(Yunnan)InvestmentCo.,Ltd,ExecutiveDirectorofOverseasChineseCity(Asia)HoldingCo.,Ltd.,thesupervisorinWuhanOCTIndustrialDevelopmentCo.,Ltd.,ShenzhenOCTCultureGroupCo.,Ltd.,OCTEastChinaInvestmentCo.,Ltd.andOCTWestInvestmentCo.,Ltd.aswellasadirectorofKonkaGroup.ZhangJing,Director,male,wasbornin1982,MBA.HeservedasManageroftheCEO’sOfficeinOCTGroup,SeniorManageroftheStrategicDevelopmentDepartmentinShenzhenOCTCo.,Ltd.,amemberofthePreparatoryWorkGroupofQingdaoOCT,DirectoroftheAdministrationDepartment(DeputyDirectorofthePartyCommitteeOffice)inShenzhenOCTPropertiesCo.,Ltd.,DeputyDirectorandDirectoroftheStrategicDevelopmentDepartmentinShenzhenOCTCo.,Ltd.,GeneralManageroftheStrategicPlanningDepartmentinOCTGroup,GeneralManageroftheCorporateManagementDepartmentinOCTGroup,andDirectoroftheCorporateManagementDepartmentinShenzhenOCTCo.,Ltd..Currently,heservesasExecutiveDeputyGeneralManagerofOCTWestInvestmentCo.,Ltd.,ChairmanandGeneralManagerofXi’anOCTIndustryCo.,Ltd.,ChairmanandGeneralManagerofXi’anQujiangOCTInvestmentDevelopmentCo.,Ltd.,GeneralManagerofXi’anOCTLandCo.,Ltd.,GeneralManagerofXi’anFengdongOCTDevelopmentCo.,Ltd.,DirectorofOCT(HK)Co.,Ltd.,Non-ExecutiveDirectorofOCT(Asia),ChairmanofOCT(Beijing)BusinessManagementCo.,Ltd.,ViceChairmanofHuawanHealthyIndustryDevelopmentCo.,Ltd.,DirectorofOCT(Yunnan)InvestmentCo.,Ltd.DirectorYunnanExpoTourismHoldingGroupCo.,Ltd.,ExecutiveDirector&GMofXi’anKangxingRealEstateCo.,Ltd.andDirectorofKonkaGroup.ZhouBin,male,bornin1979,wasthedirectorandpresidentoftheCompanywithabachelordegree.Heonceservedasthedirectorassistant,deputydirectoranddirectorinOperatingManagementCenterinKonkaGroup,assistantofthepresidentintheBoardofDirectors&DirectorinOperatingManagementCenterinKonkaGroupandPresidentofKonkaGroup.Now,heactsasthedirectorandpresidentinKonkaGroup,directorinShenzhenKonkaHoldingGroupCo.,Ltd.
2.IndependentDirectorSunShengdian,amalesenioreconomist,bornin1955,wastheindependentdirectoroftheCompanywithadoctordegreeinengineering.FormerlyviceGM,deputysecretaryofthePartycommittee,GMandpresidentofShenzhenSEG,HitachiColorDisplayDevicesCo.,Ltd.,president,secretaryofPartyCommitteeofShenzhenSEGGroupCo.,Ltd.directorofShenzhenChinaStarOptoelectronicsTechnologyCo.,Ltd.,independentdirectorofSkyworthHoldingLtd.,thevicepresidentofShenzhenHuakongSEGCo.,Ltd.,andtheheadofShenzhenElectronicsIndustriesAssociation.Now,heservesasthedirectorofChinaVankeCo.,Ltd,andindependentdirectorofKonkaGroup.WangShuguang,IndependentDirector,male,wasbornin1971,PhDineconomics,professoranddoctoralsupervisor.HeservedasIndependentDirectorofYantaiRuralCommercialBank,JinanRuralCommercialBank,NingboYuyaoRuralCommercialBankandSDICZhonglu,andExternalSupervisorandConveneroftheBoardofSupervisorsofIndustrialBankCo.,Ltd.Currently,heservesasProfessorandDoctoralSupervisorintheSchoolofEconomicsofPekingUniversity,ExecutiveDeputyDirectoroftheInstituteforCulturalIndustries,PekingUniversityandIndependentDirectorofKonkaGroup.DengChunhua,IndependentDirector,female,ethnicgroupofHan,bornin1963,MBA,professorandmaster’ssupervisorofaccounting,CertifiedPublicAccountantinChina(non-practicingmember).SheservedasChiefAccountantandProjectManagerofWUYIGECertifiedPublicAccountsLLP,ZhongnanUniversityofEconomicsandLaw,MemberoftheFifthSessionoftheCorporateSpecialCommitteeoftheChineseAssociationofQuantitativeEconomicsandMemberoftheProfessionalJuryCommitteeofHubeiAdministrationofSport.FromJuly1984tillnow,shehasbeenteachingintheSchoolofAccountingofZhongnanUniversityofEconomicsandLawasAssistantLecturer,Lecturer,AssociateProfessorandProfessor.Currently,sheservesasIndependentDirectorofJiangsuPomleadCo.,Ltd,IndependentDirectorofZhejiangGoldenseaEnvironmentTechnologyCo.,LtdandIndependentDirectorofKonkaGroup.
3.SupervisorWangYoulai,amaleengineer,bornin1961,wasthechairmanoftheSupervisoryCommitteeoftheCompanywithadoctordegree.HeformerlyworkedasthebusinessmanageroftheQualityDepartmentinKonkaGroup,assistantGM,viceGM,andvicepresidentofKonkaGroup,DeputyDirectorandDirectoroftheAdministrationDepartmentofOverseasChineseTownEnterpriseCo.,andjointpartysecretaryofGeneralHeadquarters.HeiscurrentlytheleaderofthefirstinspectionteamoftheOCTGroupCo.,Ltd.,directorofShenzhenBrightGroupCo.,Ltd.,directorofOCT(Hainan)GroupCo.,Ltd.,andsupervisorofKonkaGroup.YangGuobin,Supervisor,male,wasbornin1969,Bachelor’sDegree,CertifiedPublicAccountant.HeservedasDeputyDirectoroftheFinanceDepartmentofOCTGroup,CFOofKonkaGroupandDeputyDirectoroftheCorporateManagementDepartmentofOCTGroup.Currently,heservesasafull-timeDirectorinOCTGroup,DirectorofShenzhenGuangmingGroupandSupervisorofKonkaGroup.
LiJun,male,bornin1971,memberofCommunistParty,wasanemployeesupervisoroftheCompanywithabachelordegree.FormerlyworkedasthefinancialmanagerofNanchangBranchofTelecommunicationsTechnologyCo.,Ltd.,SeniorManageroftheFinancialDepartmentinTelecommunicationsTechnologyCo.,Ltd.,theSeniorManagerandassistanttothechiefanddeputydirectorofAuditingandLegalAffairsDepartmentinKonkaGroup,leaderofdisciplineinspectioncommissionofKonkaGroup,andemployeesupervisorofthe8
thSupervisoryCommitteeofKonkaGroup.Presentlyworkingasthefull-timedeputysecretaryofdisciplineinspectioncommissionofKonkaGroup,thedirectorofDisciplineinspectionandSupervisionCenter,ChiefoftheAuditingandLegalAffairsDepartment,GMoftheInternalControlandRiskManagementDepartment.
4.SeniorExecutiveZhouBin,male,bornin1979,wasthedirectorandpresidentoftheCompanywithabachelordegree.Heonceservedasthedirectorassistant,deputydirectoranddirectorinOperatingManagementCenterinKonkaGroup,assistantofthepresidentintheBoardofDirectors&DirectorinOperatingManagementCenterinKonkaGroupandpresidentofKonkaGroup.HeiscurrentlyadirectorofShenzhenKonkaHoldingsGroupCo.,Ltd.,adirectorandpresidentofKonkaGroup.LiHongtao,male,Hannationality,bornin1968,wasthevicepresidentoftheCompanywithabachelordegree.HesuccessivelytookthepostsuchasAssistanttoGM,GM,ChairmanoftheBoardandGMofShenzhenKonkaTelecommunicationTechnologyCo.,LtdandAssistanttoPresidentandvicepresidentofKonkaGroupetc.HenowisactingasVicePresidentofKonkaGroup.WuYongjun,male,Hannationality,bornin1975,wastheBoardSecretarywithamasterdegree.FormerlyheworkedastheseniormanagerofSecretariat,assistanttothechief,vicechief,chief,SecuritiesAffairsrepresentativeandBoardSecretaryinKonkaGroup.PresentlyheisworkingasthesecretaryoftheboardofdirectorsofKonkaGroup.LiChunlei,male,Hannationality,bornin1973,wastheCFOoftheCompanywithamasterdegree.OnceservedasthedirectorinRealEstateBusinessDivisioninKonkaGroup,viceGMandGMinKunshanKangshengInvestmentDevelopmentCo.,Ltd.,deputydirector(presidethework)anddirectorinStrategicDevelopmentCenter,GMinFinancialCenterandGMinAssetSettlementCenterandCFOofKonkaGroup.nowheactsastheCFOinKonkaGroup.YangBo,male,Hannationality,bornin1970,wasthevicepresidentoftheCompanywithamasterdegree.OnceservedasthedirectorinShenzhenCableTelevisionEducationFinancialChannel,directorinthemarketsalesandsupportregionofUSTailiyangCommunicationsCompany,GMinProgramOperatingDepartmentinShenzhenTopwayVideoCommunicationCo.,Ltd.,directorandGMinShenzhenTianhuaCenturyMediaCo.,Ltd.,GMinMarketSalesCenterinShenzhenTopwayVideoCommunicationCo.,Ltd.andvicepresidentofKonkaGroup.NowheactsasthevicepresidentinKonkaGroup.CaoShiping,male,Hannationality,bornin1978,wasthevicepresidentoftheCompanywitha
masterdegree.OnceservedastheGMinJinzhouBranchandTianjinBranchofKonkaGroupMulti-media,GMinMulti-mediaBusinessDivisionCustomerCooperationDepartment,viceGMinMulti-mediaMarketingBusinessDivision,viceGMinMulti-mediaBusinessDivisionandGMinMarketingCenter,GMinMulti-mediaBusinessDivision,GMinInternetBusinessDivisionandvicepresidentofKonkaGroup.NowheactsasthevicepresidentinKonkaGroup.SunQingyan,amalesenioreconomist,Hannationality,bornin1972,wasthevicepresidentoftheCompanywithadoctordegree.OnceservedasthetutorinNortheastUniversityofFinanceandEconomies,viceGMinShenzhenHuaixinEnterpriseInvestmentConsultingCo.,Ltd.,CEOinShenzhenXinhengLidaCapitalManagementCo.,Ltd.,viceGMinShanyingInvestmentManagementCo.,Ltd.,GMinShenzhenShenwoAssetManagementCo.,Ltd.andvicepresidentofKonkaGroup.HenowactsasthevicepresidentofKonkaGroup.Officesheldconcurrentlyinshareholdingentities:
√Applicable□Notapplicable
| Name | Shareholdingentity | Officeheldintheshareholdingentity | Startoftenure | Endoftenure | Remunerationorallowancefromtheshareholdingentity |
| LiuFengxi | OCTEnterprisesCo. | PartyCommitteeStandingCommitteeandviceGM | 22February2016 | Yes | |
| ShenzhenKonkaHoldingGroupCo.,Ltd. | DirectorandGM | 14April2020 | |||
| HeHaibin | OCTEnterprisesCo. | PartyCommitteeStandingCommittee,BoardSecretary,andchiefaccountant | 30January2018 | Yes | |
| ShenzhenOCTCapitalInvestmentManagementCo.,Ltd | ChairmanoftheBoard | 8February2018 | |||
| OCT(Yunnan)InvestmentCo.,Ltd | Director | 18December2018 | |||
| OverseasChineseCity(Asia)HoldingCo.,Ltd. | Executivedirector | 4May2017 | |||
| WuhanOCTIndustrialDevelopmentCo.,Ltd. | Supervisor | 27December2018 | |||
| ShenzhenOCTCultureGroupCo.,Ltd. | Supervisor | 11August2016 | |||
| OCTEastChinaInvestmentCo.,Ltd. | Supervisor | 20January2017 |
| OCTWestInvestmentCo.,Ltd. | Supervisor | 26August2016 | ||||
| ZhangJing | OverseasChineseTown(Asia)HoldingsLimited | Non-executivedirector | 30March2017 | |||
| OVERSEASCHINESETOWN（HK）COMPANYLIMITED | Director | 30March2017 | ||||
| OCT(Beijing)BusinessManagementCo.,Ltd. | ChairmanoftheBoard | 31March2017 | ||||
| OCT(Yunnan)InvestmentCo.,Ltd | Director | 18January2018 | ||||
| OCTWestInvestmentCo.,Ltd. | DeputyGeneralManager | 14March2019 | Yes | |||
| Xi’anOCTIndustryCo.,Ltd. | ChairmanoftheBoard,GM | 14March2019 | ||||
| Xi’anQujiangOCTInvestmentDevelopmentCo.,Ltd. | ChairmanoftheBoard,GM | 14March2019 | ||||
| Xi’anOCTLandCo.,Ltd | GM | 14March2019 | ||||
| Xi’anFengdongOCTDevelopmentCo.,Ltd | GM | 14March2019 | ||||
| HuawanHealthIndustryDevelopmentCo.,Ltd. | ViceChairman | 21September2018 | ||||
| Xi’anKangxingRealEstateCo.,Ltd. | Executivedirector&GM | 4April2019 | ||||
| YunnanExpoTourismHoldingGroupCo.,Ltd. | Director | 26November2018 | ||||
| ZhouBin | ShenzhenKonkaHoldingGroupCo.,Ltd. | Director | 14April2020 | |||
| WangYoulai | OCTGroup | Full-timedirector | 7March2018 | |||
| ShenzhenGuangmingGroupCo.,Ltd | Director | 25April2018 | ||||
| OCT(Hainan)GroupCo.,Ltd | Director | 29May2018 | ||||
| YangGuobin | OCTEnterprisesCo. | Full-timedirectorinBoardOffice | 7March2018 | Yes | ||
| Notes | 1.Excepttheabovesituation,otherdirectors,supervisorsandseniormanagementdidn’tholdanypositionintheshareholders’units.2.ItisunknowntheendingdateofthepostsofMr.LiuFengxi,Mr.HeHaibin,Mr.ZhangJing,Mr.WangYoulai,Mr.ZhouBinandMr.yangGuobinheldintheshareholders’units. | |||||
Officesheldconcurrentlyinotherentities:
√Applicable□Notapplicable
| Name | Otherentity | Officeheldintheentity | Startoftenure | Endoftenure | Remunerationorallowancefromtheentity |
| SunShengdian | ChinaVankeCo.,Ltd | Director | 30June2017 | Yes | |
| WangShuguang | SchoolofEconomicsofPekingUniversity | Professor | Yes | ||
| WangShuguang | InstituteforCulturalIndustriesofPekingUniversity | Deputydirector | |||
| DengChunhua | ZhongnanUniversityofEconomicsandLaw | Professor | Yes | ||
| DengChunhua | JiangsuPomleadCo.,Ltd | Independentdirector | |||
| DengChunhua | ZhejiangGoldenseaEnvironmentTechnologyCo.,Ltd | Independentdirector | 15May2019 |
Punishmentsimposedintherecentthreeyearsbythesecuritiesregulatorontheincumbentdirectors,supervisorsandseniormanagementaswellasthosewholeftintheReportingPeriod:
□Applicable√NotapplicableIVRemunerationofDirectors,SupervisorsandSeniorManagementDecision-makingprocedure,determinationbasisandactualpaymentsofremunerationfordirectors,supervisorsandseniormanagement:
ThesalaryofdirectorsandsupervisorsoftheCompanyshouldbesubmittedtotheshareholdersmeetingforreviewaftertheapprovalandconsentbytheBoardofdirectors.ReferredtothesalaryleveloftheDirectorsandSupervisorofthedomesticlistedcompaniesofsameindustry,thesalaryproposaloftheDirectorandSupervisorsoftheCompanywhichapprovedandreviewedbythe2
nd
ExtraordinaryGeneralMeetingof2015wereasfollows:(1)thebasicannualsalarystandardoftheBoardChairmanwasofRMB1.2million,thesubsidystandardofotherDirectors(excludingtheDirectorsservingintheCompany)wasofRMB0.3millionperpersonperyearandthesubsidystandardoftheSupervisors(excludingtheEmployeeSupervisors)wasofRMB0.2millionperpersonperyear;whichwasexecutedsinceJune2015.(2)theabovestandardswereallpre-taxstandardwiththeindividualincometaxburdenedinpersonaswellastheCompanywithheldandremittedtax.Othertreatmentforindependentdirectors:travelexpensewhentheywenttoattendtheBoardsessions,SupervisorysessionsorShareholders’GeneralMeetingsandtheexpenseswhentheywereperformingtheirdutiesasstipulatedintherelevantregulationsandtheArticlesofAssociationandotherrelevantsystems,allthesecouldbereportedfordeletion.TheBoardofDirectorsdeterminedtheremunerationofseniormanagementstaffsreferringtothefollowingfactors:a.scopeofjobsandresponsibilityshouldered;b.actualprofitoftheCompany;c.
marketremunerationlevelinthesameindustryandsamearea.Remunerationofthedirectors,supervisorsandseniormanagementoftheCompanyduringtheReportingPeriod
Unit:RMB'0,000
| Name | Officetitle | Gender | Age | Incumbent/Former | Totalbefore-taxremunerationfromtheCompany | Anyremunerationfromrelatedparty |
| LiuFengxi | ChairmanoftheBoardandCEO | Male | 48 | Incumbent | 0 | Yes |
| HeHaibin | Director | Male | 46 | Incumbent | 0 | Yes |
| ZhangJing | Director | Male | 38 | Incumbent | 0 | Yes |
| ZhouBin | Directorandpresident | Male | 41 | Incumbent | 542.92 | No |
| SunShengdian | Independentdirector | Male | 65 | Incumbent | 57.5 | No |
| WangShuguang | Independentdirector | Male | 49 | Incumbent | 30 | No |
| DengChunhua | Independentdirector | Female | 57 | Incumbent | 30 | No |
| WangYoulai | ChairmanoftheSupervisoryCommittee | Male | 59 | Incumbent | 0 | Yes |
| YangGuobin | Supervisor | Male | 51 | Incumbent | 0 | Yes |
| LiJun | Employeesupervisor | Male | 49 | Incumbent | 157.74 | No |
| LiHongtao | Vicepresident | Male | 52 | Incumbent | 294.71 | No |
| WuYongjun | Boardsecretary | Male | 45 | Incumbent | 300.95 | No |
| LiChunlei | CFO | Male | 47 | Incumbent | 296.09 | No |
| YangBo | Vicepresident | Male | 50 | Incumbent | 287.68 | No |
| CaoShiping | Vicepresident | Male | 42 | Incumbent | 300.97 | No |
| SunQingyan | Vicepresident | Male | 48 | Incumbent | 270.42 | No |
| HeJianjun | Vicepresident | Male | 50 | Former | 303.89 | No |
| Total | -- | -- | -- | -- | 2872.87 | -- |
Note:TheCompanyreissuedMr.SunShengdian’sremunerationofprioryearnotissuedin2019.Equityincentivesfordirectors,supervisorsandseniormanagementintheReportingPeriod:
□Applicable□NotapplicableVEmployees
1.Number,FunctionsandEducationalBackgroundsofEmployees
| Numberofin-serviceemployeesoftheCompanyastheparent | 1,746 |
| Numberofin-serviceemployeesofmajorsubsidiaries | 17,540 |
| Totalnumberofin-serviceemployees | 19,286 |
| TotalnumberofpaidemployeesintheReportingPeriod | 19,286 |
| NumberofretireestowhomtheCompanyastheparentoritsmajorsubsidiariesneedtopayretirementpensions | 0 |
| Functions | |
| Function | Employees |
| Production | 9,753 |
| Sales | 5,912 |
| Technical | 1,494 |
| Financial | 692 |
| Administrative | 1,435 |
| Total | 19,286 |
| Educationalbackgrounds | |
| Educationalbackground | Employees |
| Masterandabove | 203 |
| Bachelor | 2,714 |
| Juniorcollege | 6,744 |
| Highschoolandbelow | 9,625 |
| Total | 19,286 |
2.EmployeeRemunerationPolicyTheCompanypromulgateditsremunerationsystemwiththeoperatingstrategyofservingfortheenterprisedevelopmentandenhancement,andtheprincipleofdecidingtheremunerationaccordingtothepost,businessperformanceandcapabilities,aswellasthemarketcompetitivenessandinternalfairness.Anditdecidedtheemployee’sremunerationlevelaccordingtoitsbusinessearnings,thepostsandfulfillmentofthebusinessperformanceoftheemployee.
3.EmployeeTrainingPlansTheCompanyadheredtothepeople-orientedandpaidspecialattentiontocultivatethetalents.Surroundedbythebusinessdevelopmentandtheconstructionoftalentteam,theCompanyactivelyorganizedandcarriedoutvarioustrainingactivities,andcontinuouslyperfecteditstalentscultivationsystem,aswellasfurtherenhancedtheemployee’sprofessionalskillsandoverallquality,soastostrengthentheconstructionofmanagementtalents,professionaltalentsandtechnicaltalentsteams.In2019,guidedbyclosingtothebusinessneeds,theCompanycentralizedthesuperiorresourcestopromotethecultivationofkeytalents.Anditorganizedandcarriedouttheopenclassprojectforalltheemployees,andorganizedandcarriedoutthenewemployee’straining&cultivationprojects
respectivelyforthegraduatesfromcampusrecruitingandpersonnelfromsocialrecruitment.Meanwhile,itcentralizedtoorganizethepointedthetrainingprojectsofgeneralmanagementskillsandpostprofessionalknowledge,etcforthepersonnelfrommarketing,R&D,manufacturing,financialandhumanresourcessystems,soastobettercompleteitsannualtrainingplan.
4.LaborOutsourcing
□Applicable√Notapplicable
PartXCorporateGovernanceIGeneralInformationofCorporateGovernanceIntheReportingPeriod,strictlyinaccordancewiththeCompanyLaw,SecuritiesLawofthePRC,CodeofCorporateGovernanceforListedCompanies,ShareListingRulesofShenzhenStockExchangeandtherelevantrulesandregulationsoftheCSRC,theCompanytimelyamendedtheinternalcontrolsystemssuchastheArticlesofAssociationandAdministrativeMethodonProvisionofExternalFinancialAidsaswellasManagementSystemonInvestorsRelationship,continuouslyperfectedthecorporategovernancestructureandstandardizedtheCompany’soperation.BytheendoftheReportingPeriod,theactualconditionsofcorporategovernancebasicallymettherequirementsoftheregulatorydocumentsinrespectofcorporategovernancestructureoflistedcompaniesissuedbyCSRC.(I)ShareholdersandtheShareholders’GeneralMeetingTheCompanydrewupArticlesofAssociationandRulesforProcedureofShareholders’GeneralMeeting,ensuredthatallshareholders,inparticularmediumandminorshareholders,enjoylegalrightsandequalstandard.IntheReportingPeriod,theCompanywasabletopublishannouncementonShareholders’GeneralMeetingsinadvance,convenedShareholders’GeneralMeetingwithstrictlyaccordancetorelevantrequirements,soastoenabletheshareholdershavetheirrightsofinformationtotheCompany’smaterialissuesandtheparticipationrights.In2019,theCompanyconvenedfiveShareholders’GeneralMeetingintotal.TheCompanyseriouslydidwelltheregistration,arrangementandorganizationworkfortheShareholders’GeneralMeetingbeforethecircularonconveningtheShareholders’GeneralMeetingbeingpublishedatthedesignatedmedia.TheCompanyconvenedtheShareholders’GeneralMeetingattheofficeaddressoftheCompanystrictlyinlinewithrelevantstipulations,whichwasconvenientintraffic,andtheshareholderscouldattendthesessioninaccordancewiththeiractualsituation.TheCompany’sdirectors,supervisorsandseniormanagementstaffsmadeexplanationsanddescriptionfortheshareholders’questionsandadvicesatthesession.(II)ControllingshareholderandtheCompanyIntheReportingPeriod,thecontrollingshareholdersandactualcontrollersstrictlyregulateditsbehaviorandcompliedwithlawsinexercisingtheirrightsandobligations,notbypassedtheShareholders’GeneralMeetingtointerveneintheCompany’sdecisionsandoperationsdirectlyorindirectly.TheCompanywasseparatedfromthecontrollingshareholdersandactualcontrollersinaspectsofitsbusiness,personnel,assets,organandfinance,theBoardofDirectors,SupervisoryCommitteeandtheinternaldepartmentsoftheCompanyfunctionedindependently.(III)DirectorsandtheBoardofDirectors
ThenumberandstructureoftheBoardBureauoftheCompanywereincompliancewithlawsandregulations.TheCompanydrewupRulesforProceduresoftheBoardBureau,soastoensureahighefficientoperationandscientificdecision-makingoftheBoardBureau;theCompanyhassetupIndependentDirectorSystemandengagedthreeindependentdirectors.IntheReportingPeriod,thenumberofdirectorsandcompositionoftheBoardofDirectorsoftheCompanyaswellastheprocedureofselectionwasinaccordancewiththerequirementsoftherulesandlawsaswellasArticlesofAssociation.TheCompanysetupfourspecialcommittees,whichwereFinancialAuditCommittee,NominationCommittee,Remuneration&AppraisalCommittee,StrategyCommitteetoprovideprofessionopinionforthedecisionoftheBoardofDirectors.Allthedirectorscarriedouttheirwork,fulfilledtheirdutiesandscrupulouslyattendedtheBoardsessionsinaccordancewithRulesofProcedurefortheBoardofDirectors,RulesforIndependentDirectors,etc.19BoardsessionswereconvenedbytheCompanyduringtheReportingPeriod,whichbroughtthedecision-makingmechanismoftheBoardofDirectorsintofullplay.(IV)SupervisorsandsupervisorycommitteeTheCompanyhasestablishedRulesforProceduresoftheSupervisoryCommittee,personsandstructureoftheSupervisoryCommitteewasinlinewithrelevantlawsandstatutes,supervisorscanearnestlyperformtheirresponsibilities,independentlyandefficientlyexecutedsupervisionandcheckresponsibilitieswithaspiritofbeingresponsibletoshareholders.IntheReportingPeriod,thenumberofsupervisorsandcompositionoftheSupervisoryCommitteeoftheCompanyaswellastheirselectingprocedurecompliedwiththelaws,regulations.InaccordancewiththerequirementoftheRulesofProcedureforSupervisoryCommittee,thesupervisorsperformedtheirdutiesinanearnestandresponsiblemanner,andexercisedtheirfunctionsofsupervisiononthedecision-makingprocedureoftheBoardofDirectors,resolutionsandtheCompany’soperationbylaw,andtookeffectivesupervisionovertheCompany’ssignificantevents,relatedtransactions,financialposition,aswellasthelegalityandcomplianceondutyperformancebythedirectors,presidentandotherseniormanagementmembers.(V)PerformanceAppraisalandIncentive&RestrictiveMechanismTheseniormanagementstaffsoftheCompanywererecruitedonanopenbasisandincompliancewiththelawsandregulations.TheCompanyhasestablishedandgraduallyimprovedtheperformanceappraisalstandardsandincentive&restrictivemechanismforseniormanagementstaffs,soastoattractqualifiedpersonnel,andensurethestabilityofseniormanagementstaffs.(VI)InterestedpartiesDuringtheReportingPeriod,theCompanyfullyrespectedandmaintainedthelegalrightsoftheinterestedparties,andrealizedthebalanceofinterestamongthepartiessuchassociety,shareholdersandemployees,etc.Meanwhile,theCompanyprotectedtherightsoftheemployees,promotedtheenvironmentalprotection,andactivelyjoinedinthesocialbenefitandcharitable
causesoastojointlypromotesustainableandhealthydevelopment.(VII)InformationdisclosureandtransparencyTheCompanyformulatedtheManagementSystemforInvestorRelationsandtheManagementSystemforInformationDisclosureandtheRulesonImplementationforInformationDisclosureCommittee.AndtheCompanydesignatedspecially-assignedpersontotakechargeoftheinformationdisclosure,anddesignatedspecializeddepartmenttoberesponsibleforthereceptionofshareholdersandconsultation,activelycarryingouttheworkforinvestorrelationsmanagementtoensureequalaccesstoinformationforallshareholders.TheCompanystrictlycompliedwiththerequirementsofthelaws,regulationsandtheArticlesofAssociationtodiscloseitsinformationasrequiredbytherelevantregulationsonantimely,honest,completeandaccuratebasis,toensuretheaccurateandtimelyinformationdisclosure,whileensureequalaccesstoinformationforallshareholders.(VIII)Non-standardgovernance
1.Typeofnon-standardgovernancematterexistedTherewasasituationthattheCompanydisclosedundisclosedinformation.
2.TypesandcycleofundisclosedinformationprovidedtotheprincipalshareholderTheCompanyprovidedmonthlyfinancialdatatotheprincipalshareholder.
3.Reasonsfortherelatednon-standardgovernanceexistedTheCompanysubmittedtheundisclosedinformationsuchasmonthlyfinancialdatatothesubstantialshareholderdirectlyadministratedbytheState-ownedAssetsSupervisionandAdministrationCommissionofStateCouncilinaccordancewiththemanagerialdemandofSASAC.
4.ImpactonCompanyindependenceAftertheself-inspection,theCompanykeptstrictlytotherequirementsof“NoticeonStrengtheningtheSupervisionofListedCompany’sProvisionofNon-publicInformationtoSubstantialShareholdersandActualControllers”,and“SupplementaryNoticeConcerningStrengtheningtheSupervisionoftheNon-standardGovernanceBehaviorofListedCompany'sProvisionofNon-publicInformationtoSubstantialShareholdersandActualControllers”,whilestringentlyperformedthenecessaryprocedures.Thereexistednocircumstancesofsubstantialshareholder’sabuseofcontrolanddisclosureofundisclosedinformationforinsidertrading,andhence,ithasnoimpactontheindependenceoftheCompany.(IX)Developmentofcompany’sspecialgovernanceactivity,formulationandimplementationofregistrationandmanagementsystemfortheinsiderofinsideinformation
1.EstablishmentandperfectionofmanagementsystemfortheinsiderofinsideinformationTofurtherstandardizethecompany’sinsideinformationmanagementbehavior,strengthenthecompany’sinsideinformationconfidentialwork,andmaintainthefairprincipleofinformation
disclosure,theCompanyestablishedInsideInformationandInsiderManagementSysteminKonkaGroupCo.,Ltd.TheCompanystrictlyimplementsthesystemintheinformationdisclosurework,meanwhile,carefullyimplementstheCompany’sinsideinformationandinsiderregistrationandmanagementmethod,registerstheinsiderofinsideinformation,andreporttoShenzhenStockExchangeandShenzhenSecurityRegulatoryBureauaccordingtotheprovision.TheCompanyconductedthespecialinspectionontheinsideinformationmanagementduringtheoccurrenceofmajoreventin2019andtheannualreportin2019.Aftertheinspection,theCompanyactuallyrealizedthattheinsiderofinsideinformationstrictlykepttheconfidentialprovision,didnotdisclose,divulgeandspreadtheCompany’sinsideinformationtotheoutside,theinsiderofinsideinformationdidnotbuyandselltheCompany’ssharewiththeinsideinformationbeforedisclosingthemajorsensitiveinformationinfluencingtheCompany’sshareprice,therewasnoinvestigationandrectificationfromtheregulatorydepartmentduringtheediting,reviewanddisclosureofregularreportandmajorevent.ManagementRulesforInsideInformationandInsiderManagementSystemwasimplementedinplaceandcontrolledeffectively.
2.Establishmentandimplementationofexternalinformationuser’smanagementsystemTostrengthenthemanagementonthereportingofCompany’sinsideinformation,theCompanyestablishesInsideInformationReportingManagementSystem,andprescribestheinsideinformationreportingrange,reportingprocedure,responsibilitydivisionandothermattersaccordingtoSecurityLawinPeople’sRepublicofChina,InformationDisclosureManagementMethodinListedCompany,InsideInformationandInsiderManagementSysteminKonkaGroupCo.,Ltd.andotherrelatedprovisionsinthelaws,regulationsandregulatorydocuments.TheCompanyconductedthespecialinspectionontheinsideinformationreportingstatusduringtheoccurrenceofmajoreventin2019andtheannualreportin2019.Aftertheinspection,theCompany’sinsideinformationreportingstatuscomplieswiththerequirementsinInsideInformationReportingManagementSystem.InsideInformationReportingManagementSystemwasimplementedinplaceandcontrolledeffectively.IndicatebytickmarketwhetherthereisanymaterialincompliancewiththeregulatorydocumentsissuedbytheCSRCgoverningthegovernanceoflistedcompanies.
□Yes√NoNosuchcasesintheReportingPeriod.IITheCompany’sIndependencefromItsControllingShareholderinBusiness,Personnel,Asset,OrganizationandFinancialAffairsDuringtheReportingPeriod,thecompanywasfullyseparatedfromthecontrollingshareholdersintermsofbusiness,staff,assets,organs,andfinance,whichownedindependentlegalrepresentativeandmainstatusinmarketcompetitionandhadindependentaccounting,aswellaspossessedcompletebusinessandtheabilityofindependentoperationtofacethemarket.
(I)Business:theCompanyownedcompletesupply,R&D,productionandsalessystem,possessedabilityofindependentoperationtofacethemarketbyindependentoperation,independentaccounting&decision-making,independentbearingresponsibility&risks,didn’tsubjecttotheinterferenceandcontrolofthecontrollingshareholders,actualcontrolleranditscontrolledenterprises.(II)Staff:theCompanywasindependentofthecontrollingshareholderwithrespecttolabor,personnelandsalariesmanagement.TheCompanyownedindependentteamofstaffs,theseniormanagementstaff,financialpersonnelandbusinesspersonnelreceivedtheirremunerationsintheCompany,andtheywerefull-timestaffsoftheCompanywithoutholdinganypost,exceptdirectorsandsupervisors,inshareholders’unitsorotherrelatedenterprises.(III)Assetsintegrity:theCompanyhadproductionandoperationpremisescompletelyseparatedfromthecontrollingshareholder,andtheunaffiliatedandintegralassetsstructure,aswellastheindependentproductionsystem,ancillaryproductionsystem,theancillaryfacilities,housepropertyrightandotherassets,whichalsopossessedindependentprocurementandsalessystem.(IV)Organ:theCompanyhaditsownfunctionalorgansadaptingtotheneedsofself-developmentandmarketcompetitiveness,allthefunctionalorganswereseparatedfromeachotherinaspectsofpersonnel,officepremisesandmanagementrules,etc.,thereexistednoparticularsaboutanyshareholders,otherunitsorindividualsinterferingtheorgansettingoftheCompany.(V)Finance:theCompanyestablishedanindependentfinancedepartmentwithfull-timefinancialpersonnelandanindependentfinanceandaccountingsystem,andindependentlycarriedoutthefinancialworkinlinewithrequirementsofrelevantaccountingrules;theCompanypromulgatedsoundfinancialmanagementsystemtooperateindependentlywithoutsharingcommonaccountswiththecontrollingshareholder,relatedenterprise,otherunitsorindividual;theCompanyindependentlydeclaredandpaidthetaxbylawswithoutparticularsonpayingtaxestogetherwithshareholders’units.IIIHorizontalCompetition
□Applicable√NotapplicableIVAnnualandSpecialGeneralMeetingsConvenedduringtheReportingPeriod
1.GeneralMeetingConvenedduringtheReportingPeriod
| Meeting | Type | Investorparticipationratio | Dateofthemeeting | Disclosuredate | Indextodisclosedinformation |
| The1stExtraordinaryGeneralMeetingof2019 | ExtraordinaryGeneralMeeting | 24.31% | 20February2019 | 21February2019 | http://www.cninfo.com.cn/new/index |
| The2018AnnualGeneralMeeting | AnnualGeneralMeeting | 36.06% | 13May2019 | 14May2019 |
| The2ndExtraordinaryGeneralMeetingof2019 | ExtraordinaryGeneralMeeting | 24.32% | 8October2019 | 9October2019 |
| The3rdExtraordinaryGeneralMeetingof2019 | ExtraordinaryGeneralMeeting | 24.29% | 7November2019 | 8November2019 |
| The4thExtraordinaryGeneralMeetingof2019 | ExtraordinaryGeneralMeeting | 24.29% | 16December2019 | 17December2019 |
2.SpecialGeneralMeetingsConvenedattheRequestofPreferredShareholderswithResumedVotingRights
□Applicable√NotapplicableVPerformanceofDutybyIndependentDirectorsintheReportingPeriod
1.AttendanceofIndependentDirectorsatBoardMeetingsandGeneralMeetings
| Attendanceofindependentdirectorsatboardmeetingsandgeneralmeetings | |||||||
| Independentdirector | Totalnumberofboardmeetingstheindependentdirectorwaseligibletoattend | Boardmeetingsattendedonsite | Boardmeetingsattendedbywayoftelecommunication | Boardmeetingsattendedthroughaproxy | Boardmeetingstheindependentdirectorfailedtoattend | Theindependentdirectorfailedtoattendtwoconsecutiveboardmeetings(yes/no) | Generalmeetingsattended |
| SunShengdian | 19 | 4 | 15 | 0 | 0 | No | 1 |
| WangShuguang | 19 | 3 | 15 | 1 | 0 | No | 0 |
| DengChunhua | 19 | 4 | 15 | 0 | 0 | No | 1 |
Whyanyindependentdirectorfailedtoattendtwoconsecutiveboardmeetings:
Notapplicable.
2.ObjectionsRaisedbyIndependentDirectorsonMattersoftheCompanyIndicatebytickmarkwhetheranyindependentdirectorsraisedanyobjectionsonanymatteroftheCompany.
□Yes√NoNosuchcasesintheReportingPeriod.
3.OtherInformationaboutthePerformanceofDutybyIndependentDirectorsIndicatebytickmarkwhetheranysuggestionsfromindependentdirectorswereadoptedbytheCompany.
□Yes√NoSuggestionsfromindependentdirectorsadoptedornotadoptedbytheCompany:
DuringtheReportingPeriod,theIndependentDirectorsoftheCompanyvigorouslyattendedtherelevantmeetings,carefullyreviewedeachproposal,objectivelystatedtheirownviewsandopinions,knewoftheR&DprogressandtheoperatingsituationoftheCompany,theexecutionsituationoftheinternalcontrolconstructionandtheresolutionsofthemeetingsoftheBoardof
DirectorsandaswellastheAnnualGeneralMeeting.Astheexpertoftheinvolvedeachfield,theIndependentDirectorsputforwardtheconstructiveadvicesbyuseoftheirownprofessionalknowledgetowardstheinternalmanagement,including:toactivelypromotetheestablishmentandimplementationoftheCompany’sdevelopmentstrategyplan,provideadvicesontheexpansionofnewbusinesses,focusonriskcontrolmatterssuchascashflowandaccountsreceivablemanagement.TheCompanycarefullyadoptedtheadvicesfromtheIndependentDirectorsandconstantlyimprovedandenhancedthemanagementleveloftheCompany.VIPerformanceofDutiesbySpecializedCommitteesundertheBoardduringthisReportingPeriod(I)SummaryReportonthePerformanceoftheAuditCommitteeSubjecttotheBoardofDirectorsTheCompanyhadconstitutedtheWorkRulesfortheFinancialAuditCommitteeundertheBoardwhichwasrevisedin2019andillustratedtheexactpersonnel,obligationsandrightsandworkingprocessofannualreportoftheFinancialAuditCommitteeundertheBoard.In2019,basedontheprincipleoffaithfulness,themajorexecutionsituationsoftheFinancialAuditCommitteeundertheBoardwereasfollows:
1.ReviewedfinancialstatementsofAnnualReport2018,FirstQuarterReport2019,InterimReport2019,andtheThirdQuarterReport2019,andhadnoobjectiontotheaforesaidfinancialstatements.
2.SubmittedtheProposalonHiringCPAin2019totheBoardon28March2019inwhichproposingtocontinuetohireRuihuaCPAastheauditinstitutionoffinancialstatementsoftheCompanyin2019.
3.SubmittedtheProposalonChangeofCPAtotheBoardon11October2019inwhichproposingtohireShineWingCertifiedPublicAccountantsnotRuihuaCPAastheauditinstitutionoffinancialstatementsoftheCompanyin2019.
4.DuringthepreparationofAnnualReport2018oftheCompany,itfulfilledthefollowingduties:
(1)IssuedtheNotesoftheEventssuchastheAuditWorkArrangementoftheFinancialAuditCommitteeandapprovedthearrangementfor2019annualauditingoftheCompany;
(2)IssuedAuditOpinionoftheFinancialAuditCommitteeonFinancialAccountingStatementsPreparedbytheCompanybeforeCPAs’entryofAudit;
(3)CommunicatedandexchangedideaswiththeCPAsresponsibleforannualauditingontheproblemsoccurringduringtheauditing;
(4)IssuedAuditOpiniononFinancialAccountingStatementsoftheCompanyafterCPAsIssuedthePreliminaryAuditOpinion;
(5)SupervisedandurgedCPAsinwritingtosubmitheauditreportwithintheagreedtimeperiodformanytimes.
(6)IssuedSummaryReporton2019AnnualAuditingbyRuihuaCertifiedPublicAccountants;
(7)SubmittedtheResolutionofthe2019AnnualFinancialStatementoftheCompanytotheBoard;
(8)SubmittedtheProposalonEngagementoftheCPAsin2020totheBoard;
5.In2019,accordingtotheauthorizationoftheBoardofDirectors,theFinancialAuditCommitteeacceptedthereportontheworkoftheCompany’sInternalAuditingDepartmentandcarriedoutmanagementovertheInternalAuditingDepartmentoftheCompanyanditswork.(II)SummaryReportonthePerformanceoftheRemunerationandAppraisalCommitteeSubjecttotheBoardofDirectorsTheCompanyhadconstitutedtheWorkRulesfortheRemunerationandAppraisalCommitteeundertheBoardwhichillustratedtheexactpersonnel,obligationsandrightsoftheRemunerationandAppraisalCommitteeundertheBoard.In2019,basedontheprincipleoffaithfulness,themajorexecutionsituationsoftheRemunerationandAppraisalCommitteeundertheBoardwereasfollows:
1.On5August2019,theRemunerationandAppraisalCommitteesubjecttotheBoardofDirectorssubmittedtheAuditOpinionontheRewardPlanningfortheManagementoftheCompanyin2018totheBoard.
2.DuringthepreparationofAnnualReport2019,theRemunerationandAppraisalCommitteesubjecttotheBoardofDirectorsissuedtheAuditOpinionontheDisclosedRemunerationSituationoftheDirectors,SupervisorsandSeniorExecutivesoftheCompany,whichconsideredtheconditionoftheremunerationoftheDirectors,SupervisorsandSeniorExecutivesoftheCompanydisclosedinthe2019AnnualReportwasverified.ThedisclosedremunerationsituationoftheDirectors,SupervisorsandSeniorExecutivesoftheCompanymetwiththeremunerationmanagementsystemwithoutanysituationthatviolatedtheremunerationmanagementsystemoftheCompany.VIIPerformanceofDutybytheSupervisoryCommitteeIndicatebytickmarkwhethertheSupervisoryCommitteefoundanyrisktotheCompanyduringitssupervisionintheReportingPeriod.
□Yes√NoTheSupervisoryCommitteeraisednoobjectionsintheReportingPeriod.VIIIAppraisalofandIncentiveforSeniorManagementInordertoenabletheseniormanagementstaffsoftheCompanygivebetterperformanceoftheirduties,andclarifytheirrightsandobligations,theCompanyestablishedandimprovedafair,transparentandefficientPerformanceAppraisalStandardandIncentive&RestraintMechanismfortheseniormanagementstaffs.TheCompanyassessedthedutyperformanceandcompletionofbusinessofseniormanagementstaffsintermsofprofessionalskills,managementlevelandjobperformance;tookthesalaryplusbonusasamainincentiveway,toimprovetheincentiveofseniormanagement.TheseniormanagementstaffwasappraisedbytheBoardofDirectors,whichwassupervisedbytheSupervisoryCommittee.
IXInternalControl
1.MaterialInternalControlWeaknessesIdentifiedfortheReportingPeriod
□Yes√No
2.InternalControlSelf-EvaluationReport
| Disclosuredateoftheinternalcontrolself-evaluationreport | 20April2020 | ||
| Indextothedisclosedinternalcontrolself-evaluationreport | http://www.cninfo.com.cn/new/index | ||
| Evaluatedentities’combinedassetsas%ofconsolidatedtotalassets | 90.00% | ||
| Evaluatedentities’combinedoperatingrevenueas%ofconsolidatedoperatingrevenue | 90.00% | ||
| Identificationstandardsforinternalcontrolweaknesses | |||
| Type | Weaknessesininternalcontroloverfinancialreporting | Weaknessesininternalcontrolnotrelatedtofinancialreporting | |
| Naturestandard | Thosewiththefollowingcharacteristicsshouldberecognizedasgreatdefect:(1)foundoutthereweremalpracticesoftheDirectors,SupervisorsandSeniorExecutivesoftheCompanythatformedsignificantinfluencesonthefinancialreport;(2)theCompanyrevisedthepublishedfinancialreportandrevisedthegreatmisstatementscausedbythemalpracticesorthemistakes;(3)CPAfoundouttherewasgreatmisstatementofthecurrentfinancialreportwhiledidn’tfoundduringtheoperatingprocessoftheinternalcontrol;(4)thesupervisionoftheinternalcontrolbytheFinanceAuditCommitteeandtheinternalauditinstitutionoftheCompanywasinvalid;(5)notyetrevisedthegreatdefectafterthereasonableperiodaswhichwasdiscoveredamongtheinternalcontrolassessment;(6)thesignificantbusinesslackedofsystematiccontrolorthesystematiccontrolwasinvalid..Thosewiththefollowingcharacteristicsshouldberecognizedassignificantdefect:(1)notyetchosenorappliedtheaccountingpolicesaccordingtothegenerallyacceptedaccountingstandards;(2)notyetconstructedtheanti-spamprocessorcontrolmeasures;(3)asfortheaccountsdisposaloftheunconventionalorspecialtransactions,therewasnocorrespondingcontrolmechanismorexecutionortheexistenceofthecorrespondingsupplementcontrol;(4)therewasoneormultipledefectsduringthecontrolofthecompileofthefinancialreportattheperiod-endandcouldnotreasonableguaranteethestatementofthecompiledfinancialreportreachtherealandaccuratetarget;(5)notyetrevisedthesignificantdefectafterthereasonableperiodaswhichwas | Thefollowingsignsindicatedtheremayexistgreatdefectamongtheinternalcontrolofthenon-financialreport;(1)theoperatingactivitiesoftheenterprisesseriouslyviolatedthenationallawsandregulations;(2)negativenewsfrequentlydisclosedbythemediawhichcausedsignificantharmtotheCompany’sreputation;(3)thecoremanagementteamlefttheirpositionsoneafteranotherortheoutflowofthekeypositionpersonnelwasserious;(4)significantbusinesslackedofsystematiccontrolofthesystemwasinvalid;(5)greatdefectdiscoveredamongtheinternalcontrolassessmentnotyetberevisedintime.Thefollowingsignsindicatedtheremayexistsignificantdefectamongtheinternalcontrolofthenon-financialreport:(1)negativenewsoccurredratherfrequentlywhichcausedratherbigharmtotheCompany’sreputation;(2)theoutflowofthekeypositionpersonnelwasratherserious;(3)therewasobviousdefectamongthecontrolsystemofthesignificantbusiness;(4)thesignificantdefectfoundamongtheinternalcontrolassessmentnotyetberevisedintime.3.Otherdefectsfromthe | |
| discoveredamongtheinternalcontrolassessment.3.Otherdefectsfromtheinternalcontrolhadn’treachedtherecognitionstandardsofthegreatdefectorsignificantdefectshouldberecognizedasgeneraldefect. | internalcontrolhadn’treachedtherecognitionstandardsofthegreatdefectorsignificantdefect,shouldberecognizedasgeneraldefect. | |
| Quantitativestandard | Greatdefect:potentialmisstatementamount≥1%ofthegrossprofitmarginofthe2019consolidatedfinancialreportoftheCompany;significantdefect:0.5%ofthegrossprofitmarginofthe2019consolidatedfinancialreportoftheCompany≤potentialmisstatementamount＜1%ofthegrossprofitmarginofthe2019consolidatedfinancialreportoftheCompany;generaldefect:potentialmisstatementamount＜0.5%ofthegrossprofitmarginofthe2019consolidatedfinancialreportoftheCompany. | Implementinaccordancewiththequantitativecriteriaofinternalcontroldefectevaluationinfinancialstatements |
| Numberofmaterialweaknessesininternalcontroloverfinancialreporting | 0 | |
| Numberofmaterialweaknessesininternalcontrolnotrelatedtofinancialreporting | 0 | |
| Numberofseriousweaknessesininternalcontroloverfinancialreporting | 0 | |
| Numberofseriousweaknessesininternalcontrolnotrelatedtofinancialreporting | 0 | |
XIndependentAuditor’sReportonInternalControl
√Applicable□Notapplicable
| Opinionparagraphintheindependentauditor’sreportoninternalcontrol | |
| Weconsideredthat,inallthesignificantaspects,KonkaGroupmaintainedefficientinternalcontrolofthefinancialreportaccordingtotheC-SOXandtherelevantregulationson31December2019 | |
| Independentauditor’sreportoninternalcontroldisclosedornot | Disclosed |
| Disclosuredate | 22April2020 |
| Indextosuchreportdisclosed | http://www.cninfo.com.cn/new/index |
| Typeoftheauditor’sopinion | Unmodifiedunqualifiedopinion |
| Materialweaknessesininternalcontrolnotrelatedtofinancialreporting | None |
Indicatebytickmarkwhetheranymodifiedopinionisexpressedintheindependentauditor’sreportontheCompany’sinternalcontrol.
□Yes√NoIndicatebytickmarkwhethertheindependentauditor’sreportontheCompany’sinternalcontrolisconsistentwiththeinternalcontrolself-evaluationreportissuedbytheCompany’sBoard.
√Yes□No
PartXICorporateBondsDoestheCompanyhaveanycorporatebondspubliclyofferedonthestockexchange,whichwereoutstandingbeforethedateofthisReport’sapprovalorwereduebutcouldnotberedeemedinfull?YesI.BasicInformationoftheCorporateBonds
| Name | Abbr. | Code | Releasedate | Duedate | Bondsbalance(RMB’0,000) | Couponrate | Wayofredemption |
| Privatelyplacedcorporatebondsin2019ofKonkaGroupCo.,Ltd(TrancheI)(VarietyI) | 19Konka01 | 114418 | 14January2019 | 14January2022 | 100,000 | 5.00% | Interestsshallbepaideveryyearandtheprincipalsshallberepaidwhenexpired. |
| Privatelyplacedcorporatebondsin2019ofKonkaGroupCo.,Ltd(TrancheI)(VarietyII) | 19Konka02 | 114423 | 14January2019 | 14January2022 | 150,000 | 5.00% | Interestsshallbepaideveryyearandtheprincipalsshallberepaidwhenexpired. |
| Privatelyplacedcorporatebondsin2019ofKonkaGroupCo.,Ltd(TrancheII)(VarietyI) | 19Konka03 | 114488 | 3June2019 | 3June2022 | 50,000 | 4.50% | Interestsshallbepaideveryyearandtheprincipalsshallberepaidwhenexpired. |
| Privatelyplacedcorporatebondsin2019ofKonkaGroupCo.,Ltd(TrancheII)(VarietyII) | 19Konka04 | 114489 | 3June2019 | 3June2022 | 50,000 | 4.70% | Interestsshallbepaideveryyearandtheprincipalsshallberepaidwhenexpired. |
| Privatelyplacedcorporatebondsin2019ofKonkaGroupCo.,Ltd(TrancheIII)(VarietyI) | 19Konka05 | 114523 | 22July2019 | 22July2022 | 80,000 | 4.53% | Interestsshallbepaideveryyearandtheprincipalsshallberepaidwhenexpired. |
| Privatelyplacedcorporatebondsin2019ofKonkaGroupCo.,Ltd(TrancheIII)(VarietyII) | 19Konka06 | 114524 | 22July2019 | 22July2022 | 70,000 | 4.70% | Interestsshallbepaideveryyearandtheprincipalsshallberepaidwhenexpired. |
| ListedortransferredtradingplaceoftheCompanybonds | ShenzhenStockExchange | ||||||
| Appropriatearrangementoftheinvestors | “19Konka01”,”19Konka02”,“19Konka03”,“19Konka04”,“19Konka05”and“19Konka06”wereplacedprivatelytoqualifiedinstitutionalinvestors(notexceeding200)meetingtherequirementsofManagementmethodforInvestorsEligibilityinBondsMarketofShenzhenStockExchange. | ||||||
| InterestpaymentduringtheReportingPeriod | DuringtheReportingPeriod,“19Konka01”,”19Konka02”,“19Konka03”,“19Konka04”,“19Konka05”and“19Konka06”thefirstinterestpaymentdatedidnotarrive. | ||||||
| ExecutionoftherelevantregulationsduringtheReportingPeriodsuchastheaffiliatedoptionclauseoftheissuersorinvestors,specialclausessuchastheexchangeableregulationsoftheCompanybonds(ifapplicable) | 1.Optionforissuertoadjustcouponrate;2.Put-backsoptionforinvestors;therewasnoimplementationofrelevantclauses. | ||||||
II.ListoftheBondTrusteeandtheRatingOrganization
| Bondtrustee: | ||||||||
| Name | IndustrialSecuritiesCo.,Ltd | Officeaddress | Room601,No.35JinshifangStreet,XichengDistrict,Beijing | Contactperson | PuHang,andZhangHuifang | Contactnumber | 010-50911203 | |
| RatingorganizationexecutedthetrackingratingofthecorporatebondsoftheReportingPeriod: | ||||||||
| Name | UnitedRatingsCo.,Ltd. | Officeaddress | No.2JianwaiStreet,ChaoyangDistrict,Beijing | |||||
| Alternationreasons,executionprocessandinfluencesontheinvestors’interestsetc.iftherewasalternationofthebondtrusteesandthecreditratingagenciesengagedbytheCompanyduringtheReportingPeriod(ifapplicable) | No | |||||||
III.ListoftheUsageoftheRaisedFundsoftheCorporateBonds
| ListoftheusageoftheraisedfundsandtheexecutionprocessoftheCompanybonds | TheCompanyhasusedtheraisedfundsanddisclosedrelatedinformationinatimely,authentic,accurateandcompletemannerstrictlyinaccordancewiththetermsintheprospectusforcurrentbonds,relatedprovisionsandrequirementsintheMeasuresforIssuanceandTradingofCorporateBonds,CSRCReleasesNo.2GuidelinefortheSupervisionofListedCompanies-AdministrationofFundsRaisedbyListedCompaniesandApplicableSupervisionRequirements,theStockListingRulesoftheShenzhenStockExchangeandtheRulesoftheShenzhenStockExchangeforStockListingonChiNext.Ithasnotengagedinanyviolationsinrespectoftheuseandmanagementoftheraisedfunds. |
| Endingbalance(RMB’0,000) | 0 |
| Operatingsituationoftheraisedfundsspecialaccount | Theoperationwasingoodconditionwithoutanyviolationsforrelevantregulationsorcapitalsupervisionagreement |
| Whethertheusageoftheraisedfundsmetwiththeusage,usingplanandotheragreementscommittedontheprospectus | Yes |
IV.RatingSituationoftheCorporateBondsInformationInMay2019,UnitedCreditRatingsCo.,Ltd.madethetrackingratingfortheentityandrelevantbonds(including“19Konka01”and“19Konka02”)oftheCompany.TheentityoftheCompanywasratedasGradeAAinvariablyandas“Stable”foritsratingprospect;thebonds“19Konka01”and“19Konka02”issuedbyKonkaGroupCo.,Ltd.wereratedasGradeAAAinvariablyfortheircreditandas“Stable”fortheirratingprospect.Thetrackingratingresultisconsistentwiththatissuedatthetimeofcorporatebondsissuance.TherelatedratingreporthasbeenpublishedonthewebsiteofShenzhenStockExchangeinMay2019.V.Credit-addingMechanism,RepaymentPlanandOtherRepaymentGuaranteeMeasuresoftheCorporateBondsOCTGroupprovidedtheunconditionalandirrevocablejointliabilityguaranteeinfullamountforthebonds“19Konka01”,”19Konka02”,“19Konka03”,“19Konka04”,“19Konka05”and“19Konka06”intheReportingPeriod.Therewasnochangeinthecredit-addingmechanismofabovecorporatebondsduringtheReportingPeriod.VI.ConveneSituationoftheBondsHoldersMeetingduringtheReportingPeriodNobondsholdersmeetingwasconvenedduringtheReportingPeriod.VII.ListoftheDutyExecutionoftheBondsTrusteeduringtheReportingPeriodDuringtheReportingPeriod,IndustrialSecuritiesCo.,Ltd.,theCompany’sbondtrusteemanager,proactivelyperformeditstrusteeship,continuedtobeconcernedwiththeCompany’sroutineproductionandoperationandfinancialconditions,andendeavoredtomaintainthelegitimaterights
andinterestsofthebondholderstrictlyinaccordancewithrelatedlaws,regulations,theManagementMeasuresfortheIssueandTradingofCorporateBonds,theProspectusandtheAgreementfortheBondTrusteeshipManagement.VIII.TheMajorAccountingDataandtheFinancialIndicatorsoftheRecent2YearsoftheCompanyupthePeriod-end
Unit:RMB’0,000
| Item | 2019 | 2018 | Changerateofthesameperiod |
| EBITDA | 164,356.08 | 125,522.52 | 30.94% |
| Currentratio | 114.80% | 96.33% | 18.47% |
| Asset-liabilityratio | 76.69% | 71.35% | 5.34% |
| Quickratio | 90.78% | 72.13% | 18.65% |
| TotaldebtratioofEBITDA | 7.56% | 8.18% | -0.626% |
| Timesinterestearned | 1.39 | 1.86 | -25.27% |
| Timesinterestearnedofcash | -0.61 | -3.06 | 80.18% |
| TimesinterestearnedofEBITDA | 1.86 | 2.39 | -22.18% |
| Loanrepaymentrate | 100.00% | 100.00% | 0.00% |
| Interestcoverage | 100.00% | 100.00% | 0.00% |
MainreasonoftheaboveaccountingdataandthefinancialindicatorswiththeYoYchangeexceeded30%
□Applicable√NotapplicableIX.ListoftheInterestPaymentofOtherBondsandDebtFinancingInstrumentsduringtheReportingPeriodNosuchcasesintheReportingPeriod.X.ListoftheAcquiredBankCreditLines,UsageandtheRepaymentoftheBankLoansAsoftheendoftheReportingPeriod,theCompanyacquiredbankcreditlinesofRMB15.35billion,andusedRMB7.762billion.Allbankloanscanberepaidonschedulewithoutanyoverduesituations.XI.ListoftheExecutionoftheAgreementsortheCommitmentsRelatedtotheCompanyBondsRaisingSpecificationduringtheReportingPeriodDuringtheReportingPeriod,theCompanystrictlyobservedtheagreementsandperformedthecommitmentsrelatedtotheCompanyBondsraisingspecification.XII.SignificantEventsOccurringduringtheReportingPeriodDuringtheReportingPeriod,theCompanyhastimelydisclosedcurrentannouncementsregardingsignificanteventsoccurringthewebsiteofShenzhenStockExchange(http://www.szse.cn/)and
cninfo(http://www.cninfo.com.cn/new/index).AsofthedisclosuredateofthisReport,relatedsignificanteventshavenosubsequentprogressyet.XIII.WhetherthereWasGuarantoroftheCorporateBonds
√Yes□NoWhethertheguarantorofthecorporatebondswaslegalpersonorotherorganizations
√Yes□NoWhetherseparatelydisclosethefinancialstatements(includingBalanceSheet,IncomeStatement,CashFlowStatement,andChangesinowners’(shareholders’)Equity,andnotesforFinancialStatements)ofguarantorintheReportingPeriodwithin4monthsfromtheendingdateofeveryaccountingyear
□Yes√No
PartXIIFinancialStatementsIIndependentAuditor’sReport
| Typeoftheindependentauditor’sopinion | Unmodifiedunqualifiedopinion |
| Dateofsigningthisreport | 20April2020 |
| Nameoftheindependentauditor | ShineWingCertifiedPublicAccountants(SpecialGeneralPartnership) |
| Referencenumberofauditreport | XYZH/2020GZA50009 |
| Nameofthecertifiedpublicaccountants | GuoDongchao,LiuLihong |
IndependentAuditor’sReport
XYZH/2020GZA50009AllshareholdersofKonkaGroupCo.,Ltd.I.OpinionWehaveauditedtheaccompanyingfinancialstatementsofKonkaGroupCo.,Ltd.(the“Company”),whichcomprisetheCompany’sandconsolidatedbalancesheetsoftheparentcompanyasat31December2019,theCompany’sandconsolidatedincomestatementsoftheparentcompany,theCompany’sandconsolidatedcashflowstatementsoftheparentcompany,theCompany’sandconsolidatedstatementsofchangesinshareholders’equityoftheparentcompanyfortheyearthenended,aswellasthenotestothefinancialstatements.Inouropinion,thefinancialstatementsattachedwerepreparedinlinewiththeregulationsofAccountingStandardsforBusinessEnterprisesinallsignificantaspectswhichgaveatrueandfairviewoftheconsolidatedandparentfinancialpositionoftheCompanyasat31December2019andtheconsolidatedandparentbusinessperformanceandcashflowoftheCompanyfor2019.II.BasisforOpinionWeconductedourauditinaccordancewithStandardsonAuditingforCertifiedPublicAccountants.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.Inaccordancewithprofessionalethicsforcertifiedpublicaccountants,weareindependentwithFoshanHuaxinPackingCo.,Ltd.andwehavefulfilledourotherethicalresponsibilities.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.III.KeyAuditMattersKeyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthefinancialstatementsoftheCurrentPeriod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.
| 1.Recognitionofoperatingrevenues | |
| Keyauditmatters | Countermeasuresofaudit |
| Pleaserefertothenotestothefinancialstatements"six,notestotheconsolidatedfinancialstatements"43.In2019,KonkaGroup'sconsolidatedfinancialstatementsconfirmedoperatingincomeofRMB55,119,125,478.72,themainlyrevenuecomesfromtheelectronicbusiness,tradingbusiness,andenvironmentalprotectionbusiness,environmentalprotectionbusiness,etc.Duetotheimportanceofrevenuetothefinancialstatementsasawhole,andtheinherentmisstatementriskofmanagement'smanipulationofrevenuerecognitioninordertoachievespecificgoalsorexpectations,wemakerevenuerecognitionakeyauditmatter. | (1)Evaluateandtestincometoconfirmtheeffectivenessofkeyinternalcontroldesignandoperation;(2)Selectsamplestochecksupportingdocumentssuchassalescontracts,constructioncontracts,salessupportdocuments,orders,invoices,deliveryreceipts,cargorightstransfervouchers,banktransfervouchers,invoices,customsdeclarations,etc.Accountingpoliciesidentifycontracttermsandconditionsrelatedtorisksandrewardtransfersincommodityownership,checkwhetherthecompanyisthemainresponsiblepersonoragentinthesalesbusiness,andevaluatewhetherthecompany'srevenueconfirmsthattheaccountingpoliciesmeettherequirementsoftheenterpriseaccountingstandards;(3)Performanalyticalproceduresonrevenueandcosts,analyzethefluctuationsandcausesofsalespricesthisyear,andevaluatetherationalityofsalesgrossprofitmarginchanges;(4)Accordingtothecharacteristicsandnatureofthecustomer'stransaction,selectimportantcustomerstoimplementtheletterandletterprocedureforthetransactionamountandthebalanceofthetransaction,andstrictlycontroltheletterandletterprocedure;(5)Forenvironmentalprotectionprojects,checktheestimatedtotalcostoftheprojectandreviewthecalculationprocessofthepercentageofcompletionoftheproject,assessthemanagement’ssignificantjudgmentandreasonablenessoftheestimatedtotalcost;obtainengineeringmeasurementpaymentcertificatesandotherdocumentstoconfirmthecompletionamountandprogressCheckwhethertheprogressoftheprojectandtheamountofcompletionhavebeensignedandsealedbythecontractorandthesupervisor;formajorprojects,checktheprogressoftheimageonthespot;checkwhethertheactualcompletionoftheprojectisconsistentwiththecompletionprogressconfirmedbythecompany.(6)Selectsamplesofimportantcustomersandsupplierstocheckindustrialandcommercialinformationandbackground,andevaluatethecommercialrationalityoftransactionswithcustomers;entrustlawyerstocheckwhetherthereisanassociationbetweenimportantoverseascustomersandsuppliers.Evaluatetheprofessionalcompetenceandindependenceoflawyersandtheavailabilityoflawyers'work;visitcustomersandsupplierswithlargeamountsonthespot,understandthebackgroundofthetransactionandthebasicsituationofthecounterparty,checkwhetherthereis |
| artificialincreaseintradelinks,fictionThesituationofthetransaction;(7)Conductacut-offtestonsalesrevenue. | |
| 2.Recognitionofinvestmentincome | |
| Keyauditmatters | Countermeasuresofaudit |
| Pleaserefertothenotestothefinancialstatements"six,notestotheconsolidatedfinancialstatements"43.In2019,KonkaGroup'sconsolidatedfinancialstatementsconfirmedinvestmentincomeof1,183.33811millionyuan.Mainlyforthedisposalofinvestmentincomegeneratedbylong-termequityinvestment,thegainsfromtheremeasurementoftheremainingequityafterthelossofcontrolrightsatfairvalue.Sincetheamountofinvestmentincomehasasignificantimpactonprofits,professionaljudgmentisrequiredonthedateoflossofcontrol,soweconfirmtheconfirmationofinvestmentincomeasakeyauditmatter. | (1)Evaluateandtesttheeffectivenessofmanagement'skeyinternalcontroldesignandoperationrelatedtoinvestment;(2)Interviewthecompany'smanagementandthetransfereetounderstandthebusinessbackgroundoftheequitytransfer,whetherthetransferistrue,whetherthereareotheragreements,andwhetheritconstitutesapackagetransaction;(3)Understandthemethodofequitysaleandcheckthesettingoflistingconditions;(4)Checkthecontracttermsoftheequitytransfer,theequitystructureofthesubsidiarybeforeandafterthelossofcontrol,theappointmentofmajordirectorsandsupervisors,changesintheboardofdirectors,majorresolutions,changesinthemainmanagement,andthemainbodyofperformanceevaluationbeforeandafterthetransfer(5)Checktherecoveryofequitytransferfunds;(6)Reviewthefairnessoftheequitytransactionconsideration,reviewthejudgmentoflossofcontrolandtheremainingequitytoberecognizedatfairvaluemeasurementafterlossofcontrol;(7)Reviewthecalculationprocessofthecompany'sequitytransferinvestmentincometocheckwhethertheinvestmentincomeiscalculatedcorrectly. |
IV.OtherInformationThemanagementoftheCompanyisresponsiblefortheotherinformation.Theotherinformationcomprisesalloftheinformationincludedintheannualreportfor2019otherthanthefinancialstatementsandourauditor’sreportthereon.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.V.ResponsibilityofManagementandThoseChargedwithGovernancefortheFinancialStatementsThemanagementoftheCompanyisresponsibleforthepreparationandfairpresentationofthesefinancialstatementsinaccordancewithAccountingStandardsforBusinessEnterprisestomakethemafairpresentationanddesigning,implementingandmaintaininginternalcontrolrelevanttothepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,themanagementoftheCompanyisresponsibleforassessingthe
Company’sabilitytocontinueasagoingconcern,disclosing,ifapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessthemanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhasnorealisticalternativebuttodoso.ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany’sfinancialreportingprocess.VI.CPA’sResponsibilityfortheAuditoftheFinancialStatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Wereportouropinionsolelytoyou,asabody,andfornootherpurpose.Wedonotassumeresponsibilitytowardsoracceptliabilitytoanyotherpersonforthecontentsofthisreport.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithauditingstandardswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.Aspartofanauditinaccordancewithauditingstandards,weexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.Wealso:
(1)Identifyandassesstherisksofmajormisstatementoffinancialstatementsduetofraudorerrors,designandimplementauditprocedurestodealwiththeserisks,andobtainsufficientandappropriateauditevidenceasthebasisforissuingauditopinions.Sincefraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentation,oroverridinginternalcontrol,theriskoffailingtodetectamajormisstatementduetofraudishigherthantheriskoffailingtodetectamajormisstatementduetoerror.
(2)Understandtheinternalcontrolrelatedtoauditinginordertodesignappropriateauditingprocedures.
(3)Evaluatetheappropriatenessofmanagement'sselectionofaccountingpoliciesandtherationalityofaccountingestimatesandrelateddisclosures.
(4)Todrawconclusionsontheappropriatenessofthemanagement'suseofcontinuousoperationassumptions.Atthesametime,basedontheauditevidenceobtained,aconclusioncanbedrawnonwhetherthereisamaterialuncertaintythatmaycausesignificantdoubtsaboutKonkaGroup'sabilitytocontinueoperations.Ifweconcludethattherearesignificantuncertainties,theauditingstandardsrequireustodrawtheattentionoftheusersofthestatementstotherelevantdisclosuresinthefinancialstatementsintheauditreport;ifthedisclosuresareinsufficient,weshouldissueanon-reservedopinion.Ourconclusionisbasedontheinformationavailableasofthedateoftheauditreport.However,futureeventsorcircumstancesmaypreventKonkaGroupfromcontinuingitsoperations.
(5)Evaluatetheoverallpresentation,structure,andcontentofthefinancialstatements,andevaluatewhetherthefinancialstatementsfairlyreflectrelatedtransactionsandevents.
(6)ObtainsufficientandappropriateauditevidenceonthefinancialinformationoftheentitiesorbusinessactivitiesinKonkaGrouptoexpressauditopinionsonthefinancialstatements.Weareresponsibleforguiding,supervisingandexecutinggroupaudits,andassumefullresponsibilityforauditopinions.Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andrelatedsafeguards(ifapplicable).Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsoftheCurrentPeriodandarethereforethekey
auditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.
| ShineWingCertifiedPublicAccountants(SpecialGeneralPartnership) | CPA(EngagementPartner): | |
| CPA: | ||
| Beijing·China | 20April2020 |
IIFinancialStatementsCurrencyunitforthefinancialstatementsandthenotesthereto:RMB
1.ConsolidatedBalanceSheetPreparedbyKonkaGroupCo.,Ltd.
31December2019
Unit:RMB
| Item | 31December2019 | 31December2018 |
| Currentassets: | ||
| Monetaryassets | 6,599,360,051.61 | 4,348,144,129.53 |
| Settlementreserve | ||
| Interbankloansgranted | ||
| Held-for-tradingfinancialassets | 61,494,666.97 | |
| Financialassetsatfairvaluethroughprofitorloss | 5,464,984.92 | |
| Derivativefinancialassets | ||
| Notesreceivable | 2,838,041,432.89 | 3,329,711,954.15 |
| Accountsreceivable | 4,416,179,657.87 | 4,458,053,586.42 |
| Accountsreceivablefinancing | 143,174,271.82 | |
| Prepayments | 2,072,550,811.86 | 1,036,979,167.56 |
| Premiumsreceivable | ||
| Reinsurancereceivables | ||
| Receivablereinsurancecontractreserve | ||
| Otherreceivables | 1,772,183,366.49 | 410,804,180.50 |
| Including:Interestreceivable | 7,807,400.40 | 4,059,682.40 |
| Dividendsreceivable | 547,848.62 | 547,848.62 |
| Financialassetspurchasedunderresaleagreements | ||
| Inventories | 5,318,503,044.69 | 5,487,605,227.05 |
| Contractualassets | ||
| Assetsclassifiedasheldforsale | ||
| Currentportionofnon-currentassets | 108,087,016.22 | 22,318,208.13 |
| Othercurrentassets | 2,093,212,552.25 | 2,744,216,141.98 |
| Totalcurrentassets | 25,422,786,872.67 | 21,843,297,580.24 |
| Non-currentassets: | ||
| Loansandadvancestocustomers | ||
| Investmentsindebtobligations | ||
| Available-for-salefinancialassets | 633,664,881.33 |
| Investmentsinotherdebtobligations | ||
| Held-to-maturityinvestments | ||
| Long-termreceivables | 410,509,555.85 | 390,793,038.05 |
| Long-termequityinvestments | 3,465,541,196.89 | 2,637,780,825.53 |
| Investmentsinotherequityinstruments | 21,642,170.36 | |
| Othernon-currentfinancialassets | 1,753,121,727.83 | |
| Investmentproperty | 400,197,374.07 | 210,824,355.72 |
| Fixedassets | 2,561,254,191.55 | 2,410,226,495.81 |
| Constructioninprogress | 4,291,544,368.52 | 2,176,871,530.80 |
| Productivelivingassets | ||
| Oilandgasassets | ||
| Userightsassets | ||
| Intangibleassets | 1,213,271,713.22 | 737,776,686.34 |
| R&Dexpense | ||
| Goodwill | 779,260,296.41 | 855,691,423.75 |
| Long-termprepaidexpense | 107,590,078.88 | 111,223,426.77 |
| Deferredincometaxassets | 987,763,182.17 | 639,433,954.30 |
| Othernon-currentassets | 1,172,472,723.85 | 337,477,690.39 |
| Totalnon-currentassets | 17,164,168,579.60 | 11,141,764,308.79 |
| Totalassets | 42,586,955,452.27 | 32,985,061,889.03 |
| Currentliabilities: | ||
| Short-termborrowings | 10,332,687,239.63 | 13,884,132,931.63 |
| Borrowingsfromthecentralbank | ||
| Interbankloansobtained | ||
| Held-for-tradingfinancialliabilities | ||
| Financialliabilitiesatfairvaluethroughprofitorloss | 2,459,603.25 | |
| Derivativefinancialliabilities | ||
| Notespayable | 1,319,396,374.37 | 862,330,689.47 |
| Accountspayable | 5,797,822,479.60 | 4,362,723,050.33 |
| Advancesfromcustomers | 1,076,856,387.08 | 723,227,529.20 |
| Contractualliabilities | ||
| Financialassetssoldunderrepurchaseagreements | ||
| Customerdepositsandinterbankdeposits | ||
| Payablesforactingtradingofsecurities |
| Payablesforunderwritingofsecurities | ||
| Payrollpayable | 426,870,498.58 | 376,506,567.71 |
| Taxespayable | 607,845,294.99 | 288,004,192.44 |
| Otherpayables | 2,374,287,243.20 | 2,024,657,277.74 |
| Including:Interestpayable | 227,831,108.53 | 27,230,631.41 |
| Dividendspayable | ||
| Handlingchargesandcommissionspayable | ||
| Reinsurancepayables | ||
| Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale | ||
| Currentportionofnon-currentliabilities | 210,066,077.13 | 151,792,404.13 |
| Othercurrentliabilities | ||
| Totalcurrentliabilities | 22,145,831,594.58 | 22,675,834,245.90 |
| Non-currentliabilities: | ||
| Insurancecontractreserve | ||
| Long-termborrowings | 4,890,315,729.90 | 445,000,000.00 |
| Bondspayable | 4,987,709,643.64 | |
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Leaseliabilities | ||
| Long-termpayables | 383,287,104.62 | 128,374,597.41 |
| Long-termpayrollpayable | 5,565,646.72 | 8,792,614.98 |
| Provisions | 206,591.51 | 21,772,898.37 |
| Deferredincome | 151,874,258.45 | 112,899,128.24 |
| Deferredincometaxliabilities | 95,467,096.05 | 141,020,093.34 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 10,514,426,070.89 | 857,859,332.34 |
| Totalliabilities | 32,660,257,665.47 | 23,533,693,578.24 |
| Owners’equity: | ||
| Sharecapital | 2,407,945,408.00 | 2,407,945,408.00 |
| Otherequityinstruments | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 230,368,577.09 | 208,356,624.21 |
| Less:Treasurystock | ||
| Othercomprehensiveincome | -21,293,103.52 | -10,538,219.08 |
| Specificreserve | ||
| Surplusreserves | 1,211,721,109.67 | 1,227,564,785.19 |
| Generalreserve | ||
| Retainedearnings | 4,239,763,606.89 | 4,271,408,192.21 |
| TotalequityattributabletoownersoftheCompanyastheparent | 8,068,505,598.13 | 8,104,736,790.53 |
| Non-controllinginterests | 1,858,192,188.67 | 1,346,631,520.26 |
| Totalowners’equity | 9,926,697,786.80 | 9,451,368,310.79 |
| Totalliabilitiesandowners’equity | 42,586,955,452.27 | 32,985,061,889.03 |
Legalrepresentative:LiuFengxiCFO:LiChunleiHeadofthefinancialdepartment:FengJunxiu
2.BalanceSheetoftheCompanyastheParent
Unit:RMB
| Item | 31December2019 | 31December2018 |
| Currentassets: | ||
| Monetaryassets | 2,498,077,198.12 | 2,124,335,536.69 |
| Held-for-tradingfinancialassets | 61,494,666.97 | |
| Financialassetsatfairvaluethroughprofitorloss | 5,464,984.92 | |
| Derivativefinancialassets | ||
| Notesreceivable | 2,148,312,821.38 | 2,181,466,683.90 |
| Accountsreceivable | 9,564,720,940.39 | 7,427,246,429.42 |
| Accountsreceivablefinancing | 66,002,903.68 | |
| Prepayments | 911,315,168.95 | 1,019,335,571.49 |
| Otherreceivables | 10,552,820,915.47 | 6,667,463,126.57 |
| Including:Interestreceivable | 7,431,353.86 | 5,769,663.24 |
| Dividendsreceivable | 518,580,871.02 | |
| Inventories | 218,644,308.47 | 254,225,716.41 |
| Contractualassets | ||
| Assetsclassifiedasheldforsale | ||
| Currentportionofnon-currentassets | ||
| Othercurrentassets | 1,096,689,897.40 | 77,249,216.99 |
| Totalcurrentassets | 27,118,078,820.83 | 19,756,787,266.39 |
| Non-currentassets: |
| Investmentsindebtobligations | ||
| Available-for-salefinancialassets | 326,164,881.33 | |
| Investmentsinotherdebtobligations | ||
| Held-to-maturityinvestments | ||
| Long-termreceivables | ||
| Long-termequityinvestments | 7,712,084,967.88 | 6,182,962,034.71 |
| Investmentsinotherequityinstruments | 12,940,214.36 | |
| Othernon-currentfinancialassets | 250,230,000.00 | |
| Investmentproperty | 400,197,374.07 | 210,824,355.72 |
| Fixedassets | 444,107,402.57 | 462,721,018.30 |
| Constructioninprogress | 40,933,270.51 | 157,356,696.30 |
| Productivelivingassets | ||
| Oilandgasassets | ||
| Userightsassets | ||
| Intangibleassets | 80,470,750.60 | 83,593,959.11 |
| R&Dexpense | ||
| Goodwill | ||
| Long-termprepaidexpense | 39,047,325.68 | 80,388,949.97 |
| Deferredincometaxassets | 883,234,085.45 | 516,879,201.66 |
| Othernon-currentassets | 20,000,000.00 | |
| Totalnon-currentassets | 9,863,245,391.12 | 8,040,891,097.10 |
| Totalassets | 36,981,324,211.95 | 27,797,678,363.49 |
| Currentliabilities: | ||
| Short-termborrowings | 5,014,312,913.74 | 8,179,564,987.70 |
| Held-for-tradingfinancialliabilities | ||
| Financialliabilitiesatfairvaluethroughprofitorloss | 2,459,603.25 | |
| Derivativefinancialliabilities | ||
| Notespayable | 2,610,991,473.69 | 3,513,157,955.43 |
| Accountspayable | 11,078,648,690.19 | 6,477,055,955.65 |
| Advancesfromcustomers | 318,839,961.84 | 306,650,717.69 |
| Contractualliabilities | ||
| Payrollpayable | 125,402,307.95 | 146,199,496.44 |
| Taxespayable | 9,305,344.42 | 10,913,871.30 |
| Otherpayables | 3,193,392,734.69 | 2,011,494,378.65 |
| Including:Interestpayable | 223,847,860.57 | 24,158,666.48 |
| Dividendspayable | ||
| Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale | ||
| Currentportionofnon-currentliabilities | 130,512,375.00 | 40,000,000.00 |
| Othercurrentliabilities | ||
| Totalcurrentliabilities | 22,481,405,801.52 | 20,687,496,966.11 |
| Non-currentliabilities: | ||
| Long-termborrowings | 3,438,055,729.90 | 245,000,000.00 |
| Bondspayable | 4,987,709,643.64 | |
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Leaseliabilities | ||
| Long-termpayables | 21,855,688.19 | |
| Long-termpayrollpayable | ||
| Provisions | 206,591.51 | 206,591.51 |
| Deferredincome | 59,545,839.30 | 75,705,476.93 |
| Deferredincometaxliabilities | 751,345.42 | |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 8,507,373,492.54 | 321,663,413.86 |
| Totalliabilities | 30,988,779,294.06 | 21,009,160,379.97 |
| Owners’equity: | ||
| Sharecapital | 2,407,945,408.00 | 2,407,945,408.00 |
| Otherequityinstruments | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 114,018,066.79 | 114,018,066.79 |
| Less:Treasurystock | ||
| Othercomprehensiveincome | -2,682,217.31 | -1,182,217.31 |
| Specificreserve | ||
| Surplusreserves | 1,227,564,785.19 | 1,227,564,785.19 |
| Retainedearnings | 2,245,698,875.22 | 3,040,171,940.85 |
| Totalowners’equity | 5,992,544,917.89 | 6,788,517,983.52 |
| Totalliabilitiesandowners’equity | 36,981,324,211.95 | 27,797,678,363.49 |
3.ConsolidatedIncomeStatement
Unit:RMB
| Item | 2019 | 2018 |
| 1.Revenue | 55,119,125,478.72 | 46,126,797,341.33 |
| Including:Operatingrevenue | 55,119,125,478.72 | 46,126,797,341.33 |
| Interestincome | ||
| Premiumincome | ||
| Handlingchargeandcommissionincome | ||
| 2.Costsandexpenses | 56,684,201,307.20 | 47,036,996,977.83 |
| Including:Costofsales | 52,138,198,501.04 | 43,227,613,914.45 |
| Interestexpense | ||
| Handlingchargeandcommissionexpense | ||
| Surrenders | ||
| Netclaimspaid | ||
| Netamountprovidedasinsurancecontractreserve | ||
| Expenditureonpolicydividends | ||
| Reinsurancepremiumexpense | ||
| Taxesandsurcharges | 109,851,831.11 | 89,689,865.93 |
| Sellingexpense | 2,303,132,732.06 | 2,282,174,241.64 |
| Administrativeexpense | 856,529,327.62 | 641,892,996.18 |
| R&Dexpense | 500,600,102.23 | 396,460,145.24 |
| Financecosts | 775,888,813.14 | 399,165,814.39 |
| Including:Interestexpense | 1,031,068,425.69 | 566,070,556.21 |
| Interestincome | 247,559,600.76 | 43,630,012.41 |
| Add:Otherincome | 1,229,174,834.33 | 294,265,632.23 |
| Returnoninvestment(“-”forloss) | 1,183,381,090.39 | 927,414,370.96 |
| Including:Shareofprofitorlossofjointventuresandassociates | 141,264,035.96 | 19,139,381.20 |
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Foreignexchangegain(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | -3,005,381.67 | 50,191,052.64 |
| Creditimpairmentloss(“-”forloss) | -531,879,268.76 | |
| Assetimpairmentloss(“-”forloss) | -303,035,915.82 | -226,869,220.67 |
| Assetdisposalincome(“-”forloss) | 293,706,640.64 | -563,894.74 |
| 3.Operatingprofit(“-”forloss) | 303,266,170.63 | 134,238,303.92 |
| Add:Non-operatingincome | 165,843,388.94 | 328,696,140.09 |
| Less:Non-operatingexpense | 18,533,352.41 | 8,037,851.90 |
| 4.Profitbeforetax(“-”forloss) | 450,576,207.16 | 454,896,592.11 |
| Less:Incometaxexpense | 115,640,091.82 | -213,721,829.46 |
| 5.Netprofit(“-”fornetloss) | 334,936,115.34 | 668,618,421.57 |
| 5.1Byoperatingcontinuity | ||
| 5.1.1Netprofitfromcontinuingoperations(“-”fornetloss) | 334,936,115.34 | 668,618,421.57 |
| 5.1.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.2Byownership | ||
| 5.2.1NetprofitattributabletoownersoftheCompanyastheparent | 212,034,210.08 | 411,289,744.68 |
| 5.2.1Netprofitattributabletonon-controllinginterests | 122,901,905.26 | 257,328,676.89 |
| 6.Othercomprehensiveincome,netoftax | -9,001,934.47 | -12,585,647.54 |
| AttributabletoownersoftheCompanyastheparent | -10,754,884.44 | -14,235,678.03 |
| 6.1Itemsthatwillnotbereclassifiedtoprofitorloss | -9,652,181.00 | |
| 6.1.1Changescausedbyremeasurementsondefinedbenefitpensionschemes | ||
| 6.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | -9,652,181.00 | |
| 6.1.4Changesinthefairvalueofthecompany’screditrisks | ||
| 6.1.5Other | ||
| 6.2Itemsthatwillbereclassifiedtoprofitorloss | -1,102,703.44 | -14,235,678.03 |
| 6.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | 740,697.08 | |
| 6.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | -31,342.07 | |
| 6.2.3Gain/Lossonchangesinthefairvalueofavailable-for-salefinancialassets | ||
| 6.2.4Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 6.2.5Gain/Lossarisingfromthereclassificationofheld-to-maturityinvestmentstoavailable-for-salefinancialassets | ||
| 6.2.6Allowanceforcreditimpairmentsininvestmentsinotherdebtobligations |
| 6.2.7Reserveforcashflowhedges | ||
| 6.2.8Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | -1,102,703.44 | -14,945,033.04 |
| 6.2.9Other | ||
| Attributabletonon-controllinginterests | 1,752,949.97 | 1,650,030.49 |
| 7.Totalcomprehensiveincome | 325,934,180.87 | 656,032,774.03 |
| AttributabletoownersoftheCompanyastheparent | 201,279,325.64 | 397,054,066.65 |
| Attributabletonon-controllinginterests | 124,654,855.23 | 258,978,707.38 |
| 8.Earningspershare | ||
| 8.1Basicearningspershare | 0.0881 | 0.1708 |
| 8.2Dilutedearningspershare | 0.0881 | 0.1708 |
Legalrepresentative:LiuFengxiCFO:LiChunleiHeadofthefinancialdepartment:FengJunxiu
4.IncomeStatementoftheCompanyastheParent
Unit:RMB
| Item | 2019 | 2018 |
| 1.Operatingrevenue | 5,686,102,146.98 | 13,377,681,886.45 |
| Less:Costofsales | 5,413,631,784.77 | 12,572,129,164.32 |
| Taxesandsurcharges | 14,547,750.43 | 25,843,072.39 |
| Sellingexpense | 1,210,476,107.74 | 1,511,526,663.59 |
| Administrativeexpense | 387,778,068.98 | 349,794,611.61 |
| R&Dexpense | 47,127,013.11 | 148,115,964.90 |
| Financecosts | 414,932,824.70 | 263,729,410.33 |
| Including:Interestexpense | 1,553,039,361.28 | 566,070,556.21 |
| Interestincome | 782,721,658.41 | 43,630,012.41 |
| Add:Otherincome | 51,226,732.61 | 73,925,099.14 |
| Returnoninvestment(“-”forloss) | 999,198,310.44 | 1,247,079,039.64 |
| Including:Shareofprofitorlossofjointventuresandassociates | 5,132,712.27 | 33,783,935.14 |
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | -3,005,381.67 | 50,191,052.64 |
| Creditimpairmentloss(“-”forloss) | -170,077,622.68 | |
| Assetimpairmentloss(“-”forloss) | -16,347,540.36 | -64,312,750.93 |
| Assetdisposalincome(“-”forloss) | 1,000.00 | -2,560.75 |
| 2.Operatingprofit(“-”forloss) | -941,395,904.41 | -186,577,120.95 |
| Add:Non-operatingincome | 19,741,857.31 | 51,273,970.95 |
| Less:Non-operatingexpense | 3,088,072.47 | 2,556,804.31 |
| 3.Profitbeforetax(“-”forloss) | -924,742,119.57 | -137,859,954.31 |
| Less:Incometaxexpense | -365,219,888.18 | -237,059,058.30 |
| 4.Netprofit(“-”fornetloss) | -559,522,231.39 | 99,199,103.99 |
| 4.1Netprofitfromcontinuingoperations(“-”fornetloss) | -559,522,231.39 | 99,199,103.99 |
| 4.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.Othercomprehensiveincome,netoftax | -1,500,000.00 | 788,087.31 |
| 5.1Itemsthatwillnotbereclassifiedtoprofitorloss | -1,500,000.00 | |
| 5.1.1Changescausedbyremeasurementsondefinedbenefitpensionschemes | ||
| 5.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | -1,500,000.00 | |
| 5.1.4Changesinthefairvalueofthecompany’screditrisks | ||
| 5.1.5Other | ||
| 5.2Itemsthatwillbereclassifiedtoprofitorloss | 788,087.31 | |
| 5.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | 788,087.31 | |
| 5.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 5.2.3Gain/Lossonchangesinthefairvalueofavailable-for-salefinancialassets | ||
| 5.2.4Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 5.2.5Gain/Lossarisingfromthereclassificationofheld-to-maturityinvestmentstoavailable-for-salefinancialassets | ||
| 5.2.6Allowanceforcreditimpairmentsininvestmentsinotherdebtobligations | ||
| 5.2.7Reserveforcashflowhedges | ||
| 5.2.8Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | ||
| 5.2.9Other | ||
| 6.Totalcomprehensiveincome | -561,022,231.39 | 99,987,191.30 |
| 7.Earningspershare |
| 7.1Basicearningspershare |
| 7.2Dilutedearningspershare |
5.ConsolidatedCashFlowStatement
Unit:RMB
| Item | 2019 | 2018 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 55,023,730,960.29 | 46,363,698,743.08 |
| Netincreaseincustomerdepositsandinterbankdeposits | ||
| Netincreaseinborrowingsfromthecentralbank | ||
| Netincreaseinloansfromotherfinancialinstitutions | ||
| Premiumsreceivedonoriginalinsurancecontracts | ||
| Netproceedsfromreinsurance | ||
| Netincreaseindepositsandinvestmentsofpolicyholders | ||
| Interest,handlingchargesandcommissionsreceived | ||
| Netincreaseininterbankloansobtained | ||
| Netincreaseinproceedsfromrepurchasetransactions | ||
| Netproceedsfromactingtradingofsecurities | ||
| Taxrebates | 697,787,485.21 | 475,610,439.41 |
| Cashgeneratedfromotheroperatingactivities | 4,011,016,045.28 | 3,714,670,493.13 |
| Subtotalofcashgeneratedfromoperatingactivities | 59,732,534,490.78 | 50,553,979,675.62 |
| Paymentsforcommoditiesandservices | 54,686,521,084.34 | 45,867,095,178.07 |
| Netincreaseinloansandadvancestocustomers | ||
| Netincreaseindepositsinthecentralbankandininterbankloansgranted | ||
| Paymentsforclaimsonoriginalinsurancecontracts | ||
| Netincreaseininterbankloansgranted | ||
| Interest,handlingchargesandcommissionspaid | ||
| Policydividendspaid | ||
| Cashpaidtoandforemployees | 1,808,972,838.78 | 1,659,612,131.21 |
| Taxespaid | 842,402,228.64 | 1,648,013,358.42 |
| Cashusedinotheroperatingactivities | 3,938,585,623.61 | 4,609,082,880.58 |
| Subtotalofcashusedinoperatingactivities | 61,276,481,775.37 | 53,783,803,548.28 |
| Netcashgeneratedfrom/usedinoperatingactivities | -1,543,947,284.59 | -3,229,823,872.66 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 224,405,975.50 | 106,597,820.94 |
| Returnoninvestment | 168,681,375.93 | 146,065,795.48 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 202,577,149.61 | 2,372,418.53 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | 270,821,233.18 | 252,468,488.60 |
| Cashgeneratedfromotherinvestingactivities | 2,085,669,168.69 | 2,393,028,228.96 |
| Subtotalofcashgeneratedfrominvestingactivities | 2,952,154,902.91 | 2,900,532,752.51 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 3,928,377,181.52 | 486,058,229.18 |
| Paymentsforinvestments | 1,357,746,303.50 | 597,975,935.00 |
| Netincreaseinpledgedloansgranted | ||
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | 1,118,860,395.37 | |
| Cashusedinotherinvestingactivities | 1,528,640,757.47 | 2,949,519,200.00 |
| Subtotalofcashusedininvestingactivities | 6,814,764,242.49 | 5,152,413,759.55 |
| Netcashgeneratedfrom/usedininvestingactivities | -3,862,609,339.58 | -2,251,881,007.04 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | 508,363,013.03 | 332,513,927.94 |
| Including:Capitalcontributionsbynon-controllingintereststosubsidiaries | 508,363,013.03 | 203,580,594.60 |
| Borrowingsobtained | 30,069,405,522.31 | 14,681,965,477.02 |
| Cashgeneratedfromotherfinancingactivities | 1,825,598,732.14 | 330,951,745.42 |
| Subtotalofcashgeneratedfromfinancingactivities | 32,403,367,267.48 | 15,345,431,150.38 |
| Repaymentsofborrowings | 23,540,444,424.43 | 8,081,422,372.12 |
| Paymentsforinterestanddividends | 774,763,008.11 | 709,581,026.62 |
| Including:Dividendspaidbysubsidiariestonon-controllinginterests | 32,480,813.33 | 960,052.07 |
| Cashusedinotherfinancingactivities | 1,623,142,762.86 | 757,534,424.92 |
| Subtotalofcashusedinfinancingactivities | 25,938,350,195.40 | 9,548,537,823.66 |
| Netcashgeneratedfrom/usedinfinancingactivities | 6,465,017,072.08 | 5,796,893,326.72 |
| 4.Effectofforeignexchangeratechangesoncashandcashequivalents | 1,091,987.59 | 21,061,330.94 |
| 5.Netincreaseincashandcashequivalents | 1,059,552,435.50 | 336,249,777.96 |
| Add:Cashandcashequivalents,beginningoftheperiod | 3,434,149,481.72 | 3,097,899,703.76 |
| 6.Cashandcashequivalents,endoftheperiod | 4,493,701,917.22 | 3,434,149,481.72 |
6.CashFlowStatementoftheCompanyastheParent
Unit:RMB
| Item | 2019 | 2018 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 8,005,144,873.81 | 10,411,822,006.27 |
| Taxrebates | 66,111,058.65 | 162,545,714.88 |
| Cashgeneratedfromotheroperatingactivities | 13,272,585,228.21 | 3,664,490,303.85 |
| Subtotalofcashgeneratedfromoperatingactivities | 21,343,841,160.67 | 14,238,858,025.00 |
| Paymentsforcommoditiesandservices | 7,375,766,734.52 | 8,349,385,730.39 |
| Cashpaidtoandforemployees | 695,358,748.25 | 917,379,288.04 |
| Taxespaid | 49,371,867.49 | 1,163,848,413.52 |
| Cashusedinotheroperatingactivities | 16,149,678,769.81 | 8,371,093,126.27 |
| Subtotalofcashusedinoperatingactivities | 24,270,176,120.07 | 18,801,706,558.22 |
| Netcashgeneratedfrom/usedinoperatingactivities | -2,926,334,959.40 | -4,562,848,533.22 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 352,345,126.34 | 545,729,039.58 |
| Returnoninvestment | 154,536,752.58 | 229,742,943.89 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 1,248,287.86 | 585,065.19 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
| Cashgeneratedfromotherinvestingactivities | 1,280,395,551.82 | 2,389,727,049.76 |
| Subtotalofcashgeneratedfrominvestingactivities | 1,788,525,718.60 | 3,165,784,098.42 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 90,251,903.78 | 91,684,045.40 |
| Paymentsforinvestments | 1,628,545,610.00 | 3,064,767,387.50 |
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
| Cashusedinotherinvestingactivities | 1,021,817,610.69 | 1,178,410,798.39 |
| Subtotalofcashusedininvestingactivities | 2,740,615,124.47 | 4,334,862,231.29 |
| Netcashgeneratedfrom/usedininvestingactivities | -952,089,405.87 | -1,169,078,132.87 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | ||
| Borrowingsobtained | 25,760,260,136.81 | 14,232,230,155.56 |
| Cashgeneratedfromotherfinancingactivities | 30,700,000.00 | 181,269,884.31 |
| Subtotalofcashgeneratedfromfinancingactivities | 25,790,960,136.81 | 14,413,500,039.87 |
| Repaymentsofborrowings | 21,231,768,458.85 | 7,474,353,929.91 |
| Paymentsforinterestanddividends | 649,307,167.98 | 665,807,835.95 |
| Cashusedinotherfinancingactivities | 177,215,911.37 | 758,694,935.20 |
| Subtotalofcashusedinfinancingactivities | 22,058,291,538.20 | 8,898,856,701.06 |
| Netcashgeneratedfrom/usedinfinancingactivities | 3,732,668,598.61 | 5,514,643,338.81 |
| 4.Effectofforeignexchangeratechangesoncashandcashequivalents | -14,696,602.27 | -28,192,061.54 |
| 5.Netincreaseincashandcashequivalents | -160,452,368.93 | -245,475,388.82 |
| Add:Cashandcashequivalents,beginningoftheperiod | 1,497,794,555.85 | 1,743,269,944.67 |
| 6.Cashandcashequivalents,endoftheperiod | 1,337,342,186.92 | 1,497,794,555.85 |
7.ConsolidatedStatementsofChangesinOwners’Equity2019
Unit:RMB
| Item | 2019 | ||||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||||
| 1.Balancesasattheendoftheprioryear | 2,407,945,408.00 | 208,356,624.21 | -10,538,219.08 | 1,227,564,785.19 | 4,271,408,192.21 | 8,104,736,790.53 | 1,346,631,520.26 | 9,451,368,310.79 | |||||||
| Add:Adjustmentsforchangedaccountingpolicies | -2,884,254.62 | -2,884,254.62 | -2,884,254.62 | ||||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | |||||||||||||||
| Adjustmentsforbusinesscombinationsundercommon | |||||||||||||||
| control | |||||||||||||
| Otheradjustments | |||||||||||||
| 2.Balancesasatthebeginningoftheyear | 2,407,945,408.00 | 208,356,624.21 | -10,538,219.08 | 1,227,564,785.19 | 4,268,523,937.59 | 8,101,852,535.91 | 1,346,631,520.26 | 9,448,484,056.17 | |||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 22,011,952.88 | -10,754,884.44 | -15,843,675.52 | -28,760,330.70 | -33,346,937.78 | 511,560,668.41 | 478,213,730.63 | ||||||
| 3.1Totalcomprehensiveincome | -10,754,884.44 | 212,034,210.08 | 201,279,325.64 | 124,654,855.23 | 325,934,180.87 | ||||||||
| 3.2Capitalincreasedandreducedbyowners | -7,393,378.55 | -15,843,675.52 | -23,237,054.07 | 420,402,243.23 | 397,165,189.16 | ||||||||
| 3.2.1Ordinarysharesincreasedbyowners | 437,269,412.06 | 437,269,412.06 | |||||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||||||||
| 3.2.3Share-basedpaymentsincludedin |
| owners’equity | ||||||||||
| 3.2.4Other | -7,393,378.55 | -15,843,675.52 | -23,237,054.07 | -16,867,168.83 | -40,104,222.90 | |||||
| 3.3Profitdistribution | - | - | -240,794,540.78 | -240,794,540.78 | -45,105,284.66 | -285,899,825.44 | ||||
| 3.3.1Appropriationtosurplusreserves | ||||||||||
| 3.3.2Appropriationtogeneralreserve | ||||||||||
| 3.3.3Appropriationtoowners(orshareholders) | -240,794,540.78 | -240,794,540.78 | -33,496,430.05 | -274,290,970.83 | ||||||
| 3.3.4Other | -11,608,854.61 | -11,608,854.61 | ||||||||
| 3.4Transferswithinowners’equity | 11,608,854.61 | 11,608,854.61 | ||||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | ||||||||||
| 3.4.2Increaseincapital(orsharecapital)from |
| surplusreserves | |||||||||||||
| 3.4.3Lossoffsetbysurplusreserves | |||||||||||||
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings | |||||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | |||||||||||||
| 3.4.6Other | 11,608,854.61 | 11,608,854.61 | |||||||||||
| 3.5Specificreserve | |||||||||||||
| 3.5.1Increaseintheperiod | |||||||||||||
| 3.5.2Usedintheperiod | |||||||||||||
| 3.6Other | 29,405,331.43 | 29,405,331.43 | 29,405,331.43 | ||||||||||
| 4.Balancesasattheendoftheperiod | 2,407,945,408.00 | 230,368,577.09 | -21,293,103.52 | 1,211,721,109.67 | 4,239,763,606.89 | 8,068,505,598.13 | 1,858,192,188.67 | 9,926,697,786.80 |
Unit:RMB
| Item | 2018 | ||||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||||
| 1.Balancesasattheendoftheprioryear | 2,407,945,408.00 | 104,732,242.30 | 3,697,458.95 | 1,217,644,874.79 | 4,260,125,492.57 | 7,994,145,476.61 | 204,044,330.78 | 8,198,189,807.39 | |||||||
| Add:Adjustmentsforchangedaccountingpolicies | |||||||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | |||||||||||||||
| Adjustmentsforbusinesscombinationsundercommoncontrol | |||||||||||||||
| Otheradjustments | |||||||||||||||
| 2.Balancesasatthebeginningoftheyear | 2,407,945,408.00 | 104,732,242.30 | 3,697,458.95 | 1,217,644,874.79 | 4,260,125,492.57 | 7,994,145,476.61 | 204,044,330.78 | 8,198,189,807.39 | |||||||
| 3.Increase/decreasein | 103,624,381.91 | -14,235,678.03 | 9,919,910.40 | 11,282,699.64 | 110,591,313.92 | 1,142,587,189.48 | 1,253,178,503.40 | ||||||||
| theperiod(“-”fordecrease) | ||||||||||
| 3.1Totalcomprehensiveincome | -14,235,678.03 | 411,289,744.68 | 397,054,066.65 | 258,978,707.38 | 656,032,774.03 | |||||
| 3.2Capitalincreasedandreducedbyowners | 884,568,534.17 | 884,568,534.17 | ||||||||
| 3.2.1Ordinarysharesincreasedbyowners | 204,255,406.70 | 204,255,406.70 | ||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | ||||||||||
| 3.2.4Other | 680,313,127.47 | 680,313,127.47 | ||||||||
| 3.3Profitdistribution | 9,919,910.40 | -400,007,045.04 | -390,087,134.64 | -960,052.07 | -391,047,186.71 | |||||
| 3.3.1Appropriationtosurplusreserves | 9,919,910.40 | -9,919,910.40 | ||||||||
| 3.3.2Appropriationtogeneralreserve | ||||||||||
| 3.3.3Appropriationtoowners(orshareholders) | -390,087,134.64 | -390,087,134.64 | -960,052.07 | -391,047,186.71 | ||||||
| 3.3.4Other | ||||||||||
| 3.4Transferswithinowners’equity |
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | |||||||||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||||||||||
| 3.4.3Lossoffsetbysurplusreserves | |||||||||||||
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings | |||||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | |||||||||||||
| 3.4.6Other | |||||||||||||
| 3.5Specificreserve | |||||||||||||
| 3.5.1Increaseintheperiod | |||||||||||||
| 3.5.2Usedintheperiod | |||||||||||||
| 3.6Other | 103,624,381.91 | 103,624,381.91 | 103,624,381.91 | ||||||||||
| 4.Balancesasattheendoftheperiod | 2,407,945,408.00 | 208,356,624.21 | -10,538,219.08 | 1,227,564,785.19 | 4,271,408,192.21 | 8,104,736,790.53 | 1,346,631,520.26 | 9,451,368,310.79 |
8.StatementsofChangesinOwners’EquityoftheCompanyastheParent2019
Unit:RMB
| Item | 2019 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | ||||||||||
| 1.Balancesasattheendoftheprioryear | 2,407,945,408.00 | 114,018,066.79 | -1,182,217.31 | 1,227,564,785.19 | 3,040,171,940.85 | 6,788,517,983.52 | ||||||
| Add:Adjustmentsforchangedaccountingpolicies | -2,127,505.16 | -2,127,505.16 | ||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | ||||||||||||
| Otheradjustments | 7,971,211.72 | 7,971,211.72 | ||||||||||
| 2.Balancesasatthebeginningoftheyear | 2,407,945,408.00 | 114,018,066.79 | -1,182,217.31 | 1,227,564,785.19 | 3,046,015,647.41 | 6,794,361,690.08 | ||||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -1,500,000.00 | -800,316,772.19 | -801,816,772.19 | |||||||||
| 3.1Totalcomprehensiveincome | -1,500,000.00 | -559,522,231.39 | -561,022,231.39 | |||||||||
| 3.2Capitalincreasedandreducedbyowners | ||||||||||||
| 3.2.1Ordinarysharesincreasedbyowners | ||||||||||||
| 3.2.2Capitalincreasedbyholdersofotherequity | ||||||||||||
| instruments | ||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | ||||
| 3.2.4Other | ||||
| 3.3Profitdistribution | -240,794,540.80 | -240,794,540.80 | ||
| 3.3.1Appropriationtosurplusreserves | ||||
| 3.3.2Appropriationtoowners(orshareholders) | -240,794,540.80 | -240,794,540.80 | ||
| 3.3.3Other | ||||
| 3.4Transferswithinowners’equity | ||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | ||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | ||||
| 3.4.3Lossoffsetbysurplusreserves | ||||
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings | ||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings |
| 3.4.6Other | ||||||||||
| 3.5Specificreserve | ||||||||||
| 3.5.1Increaseintheperiod | ||||||||||
| 3.5.2Usedintheperiod | ||||||||||
| 3.6Other | ||||||||||
| 4.Balancesasattheendoftheperiod | 2,407,945,408.00 | 114,018,066.79 | -2,682,217.31 | 1,227,564,785.19 | 2,245,698,875.22 | 5,992,544,917.89 |
Unit:RMB
| Item | 2018 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | ||||||||||
| 1.Balancesasattheendoftheprioryear | 2,407,945,408.00 | 111,525,163.22 | -1,970,304.62 | 1,217,644,874.79 | 3,327,627,676.56 | 7,062,772,817.95 | ||||||
| Add:Adjustmentsforchangedaccountingpolicies | ||||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | ||||||||||||
| Otheradjustments | 8,575,762.89 | 13,352,205.34 | 21,927,968.23 | |||||||||
| 2.Balancesasatthebeginningoftheyear | 2,407,945,408.00 | 120,100,926.11 | -1,970,304.62 | 1,217,644,874.79 | 3,340,979,881.90 | 7,084,700,786.18 | ||||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -6,082,859.32 | 788,087.31 | 9,919,910.40 | -300,807,941.05 | -296,182,802.66 | |||||||
| 3.1Totalcomprehensive | 788,087.31 | 99,199,103.99 | 99,987,191.30 | |||||||||
| income | |||||
| 3.2Capitalincreasedandreducedbyowners | |||||
| 3.2.1Ordinarysharesincreasedbyowners | |||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | |||||
| 3.2.4Other | |||||
| 3.3Profitdistribution | 9,919,910.40 | -400,007,045.04 | -390,087,134.64 | ||
| 3.3.1Appropriationtosurplusreserves | 9,919,910.40 | -9,919,910.40 | |||
| 3.3.2Appropriationtoowners(orshareholders) | -390,087,134.64 | -390,087,134.64 | |||
| 3.3.3Other | |||||
| 3.4Transferswithinowners’equity | |||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | |||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||
| 3.4.3Lossoffsetby |
| surplusreserves | ||||||||||
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings | ||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | ||||||||||
| 3.4.6Other | ||||||||||
| 3.5Specificreserve | ||||||||||
| 3.5.1Increaseintheperiod | ||||||||||
| 3.5.2Usedintheperiod | ||||||||||
| 3.6Other | -6,082,859.32 | -6,082,859.32 | ||||||||
| 4.Balancesasattheendoftheperiod | 2,407,945,408.00 | 114,018,066.79 | -1,182,217.31 | 1,227,564,785.19 | 3,040,171,940.85 | 6,788,517,983.52 |
KonkaGroupCo.,Ltd.NotestoFinancialStatements2019(Allamountsareexpressed,unlessotherwisestated,inRenminbi(RMB).)I.CompanyProfile
1.EstablishmentKonkaGroupCo.,Ltd.(hereinafterreferredtoas“Company”or“theCompany”),isajoint-stocklimitedcompanyreorganizedfromtheformerShenzhenKonkaElectronicCo.,Ltd.inAugust1991uponapprovalofthePeople’sGovernmentofShenzhenMunicipality,andhasitsordinaryshares(A-shareandB-share)listedonShenzhenStockExchangewithpriorconsentfromthePeople’sBankofChinaShenzhenSpecialEconomicZoneBranch.On29August1995,theCompanywasrenamedto“KonkaGroupCo.,Ltd.”(Credibilitycode:914403006188155783)withitsmainbusinesselectronicindustry.AndnowtheheadquarterslocatesinNo.28ofNo.12ofKejiSouthRd.,Science&TechnologyPark,YuehaiStreet,NanshanDistrict,Shenzhen,GuangdongProvince.
2.SharecapitalAfterthedistributionofbonusshares,allotments,increasedsharecapitalandnewsharesissuedovertheyears,asofDecember31,2019,thecompanyhasissuedatotalof2,407,945,408.00shares(denominationof1yuanpershare)witharegisteredcapitalof2,407,945,408.00yuan.
3.Thenatureofthecompany'sbusinessandmainoperatingactivitiesTheCompanyanditssubsidiariesaremainlyengagedintheproductionandsalesofcolourTVs,whitegoods,mobilephones,etc.;tradebusiness,environmentalprotection,etc.
4.ThefinancialstatementscontainedhereinhavebeenapprovedforissuebytheBoardofDirectorsoftheCompanyon20April2020.II.Consolidationscope
1.AsofDecember31,2019,thecompanyhasatotalof146subsidiariesincludedintheconsolidationscope.Fordetails,pleaserefertoNote8"EquityinOtherEntities".Theconsolidationscopeofthecompanythisyearincreasedby56householdsanddecreasedby18householdscomparedtothepreviousyear.Fordetails,pleaserefertoNote7“Changesintheconsolidationscope”.
| Corporatename | Abbreviation |
| KonkaVenturesDevelopment(Shenzhen)Co.,Ltd. | KonkaVentures |
| YantaiKonkaHealthcareEnterpriseServiceCo.,Ltd. | YantaiKonka |
| ChengduKonkaIncubatorManagementCo.,Ltd. | ChengduKonkaIncubator |
| ChengduAnrenKonkaCulturalandCreativeIncubatorManagementCo.,Ltd. | ChengduAnren |
| GuiyangKonkaEnterpriseServiceCo.,Ltd. | KonkaEnterpriseService |
| NanjingChuanghuiSmartTechnologyCo.,Ltd. | ChuanghuiSmart |
| ShenzhenKonkaCross-BorderTechnologicalInnovationServiceCo.,Ltd. | Cross-BorderTechnologicalInnovation |
| GuizhouKonkaEnterpriseManagementServiceCo.,Ltd. | KonkaEnterpriseManagement |
| YibinKonkaIncubatorManagementCo.,Ltd. | YibinKonkaIncubator |
| AnhuiKonkaElectronicCo.,Ltd. | AnhuiKonka |
| AnhuiKangzhiTradeCo.,Ltd. | KangzhiTrade |
| KonkaFactoring(Shenzhen)Co.,Ltd. | KonkaFactoring |
| YoushiKangrongCultureCommunicationCo.,Ltd. | YoushiKangrong |
| ShenzhenKonkaUnifortuneTechnologyCo.,Ltd. | KonkaUnifortune |
| JialiInternational(HongKong)Limited | JialiInternational |
| ShenzhenWankaidaScienceandTechnologyCo.,Ltd. | Wankaida |
| DongguanKonkaElectronicCo.,Ltd. | DongguanKonka |
| ShenzhenKonkaTelecommunicationsTechnologyCo.,Ltd. | TelecommunicationTechnology |
| KonkaMobilityCo.,Limited | KonkaMobility |
| ShenzhenKonkaLifeElectricApplianceCo.,Ltd. | LifeElectricAppliance |
| MudanjiangArcticOceanAppliancesCo.,Ltd. | MudanjiangAppliances |
| Konka(Europe)Co.,Ltd. | KonkaEurope |
| ShenzhenKonkaCommercialSystemTechnologyCo.,Ltd. | CommercialSystemTechnology |
| ShenzhenKonkaElectricalAppliancesCo.,Ltd. | KonkaElectricalAppliances |
| HainanKonkaMaterialTechnologyCo.,Ltd. | KonkaMaterial |
| ShenzhenKonkaMobileInterconnectionTechnologyCo.,Ltd. | MobileInterconnection |
| SichuanKonkaSmartTerminalTechnologyCo.,Ltd | SichuanKonka |
| YibinKonkaSmartTechnologyCo.,Ltd. | YibinSmart |
| AnhuiKonkaTongchuangElectricalAppliancesCo.,Ltd. | AnhuiTongchuang |
| AnhuiKonkaElectricalApplianceTechnologyCo.,Ltd. | AnhuiElectricalAppliance |
| HenanFrestecRefrigerationApplianceCo.,Ltd. | FrestecRefrigeration |
| HenanFrestecSmartEcologicalElectricalAppliancesCo.,Ltd. | FrestecSmart |
| HenanFrestecElectricalAppliancesCo.,Ltd. | FrestecElectricalAppliances |
| HenanFrestecHouseholdAppliancesCo.,Ltd. | FrestecHouseholdAppliances |
| ShenzhenKonkaPengrunTechnology&IndustryCo.,Ltd. | KonkaPengrun |
| JiaxinTechnologyCo.,Ltd. | JiaxinTechnology |
| E3info(Hainan)TechnologyCo.,Ltd. | E3info |
| ShenzhenKonkaYifangTechnologyCo.,Ltd. | YifangTechnology |
| DongguanKonkaPackingMaterialsCo.,Ltd. | DongguanPacking |
| ShenzhenE2infoNetworkTechnologyCo.,Ltd. | E2info |
| E2info(Hainan)NetworkTechnologyCo.,Ltd. | E2info(Hainan) |
| BeijingKonkaElectronicCo.,Ltd. | BeijingKonkaElectronic |
| KonkaFinancialLeasing(Tianjin)Co.,Ltd. | KonkaLeasing |
| ShenzhenKonkaElectronicFittingsTechnologyCo.,Ltd. | FittingsTechnology |
| BoluoKonkaPrecisionTechnologyCo.,Ltd. | BoluoKonkaPrecision |
| XiamenDalongTradingCo.,Ltd. | XiamenDalong |
| BoluoKonkaPCBCo.,Ltd. | BoluoKonka |
| HongKongKonkaLimited | HongKongKonka |
| KonkaElectricalAppliancesInvestment&DevelopmentCo.,Ltd. | KonkaElectricalAppliancesInvestment |
| ChainKingdomMemoryTechnologiesCo.,Limited | ChainKingdomMemoryTechnologies |
| ChainKingdomMemoryTechnologies(Shenzhen)Co.,Ltd. | ChainKingdomMemoryTechnologies(Shenzhen) |
| HefeiChainKingdomMemoryTechnologiesCo.,Ltd. | HefeiChainKingdomMemoryTechnologies |
| KonkaSmartTechLimited | KonkaSmartTech |
| Kangjietong(HongKong)Limited | Kangjietong |
| KonkaElectricalAppliancesInternationalTradingCo.,Ltd. | KonkaElectricalAppliancesInternationalTrading |
| KanghaoTechnologyCo.,Ltd. | KanghaoTechnology |
| YuekangSemiconductorTechnology(Yantai)Co.,Ltd. | YuekangSemiconductor |
| KonkaNorthAmericaLLC | KonkaNorthAmerica |
| ShenzhenKonkaInvestmentHoldingCo.,Ltd. | KonkaInvestment |
| YibinKonkaTechnologyParkOperationCo.,Ltd. | YibinKonkaTechnologyPark |
| SichuanKonkaIndustrialNewTownDevelopmentCo.,Ltd. | IndustrialNewTown |
| ShenzhenKonkaCapitalEquityInvestmentManagementCo.,Ltd. | KonkaCapital |
| KonkaSuiyongInvestment(Shenzhen)Co.,Ltd. | KonkaSuiyong |
| ShenzhenKonkaKangxinTechnologyCo.,Ltd. | KangxinTechnology |
| ShenzhenKangquanEnterpriseManagementConsultingCo.,Ltd. | KangquanEnterprise |
| ShenzhenKonkaSuyuanInvestmentIndustrialCo.,Ltd. | KonkaSuyuan |
| HainanKonkaTechnologyIndustryDevelopmentCo.,Ltd. | HainanTechnology |
| ShenzhenKonkaShengxingIndustrialCo.,Ltd. | ShengxingIndustrial |
| ShenzhenKonkaIndustrialParkDevelopmentCo.,Ltd. | IndustrialParkDevelopment |
| ShenzhenKonkaZhitongTechnologyCo.,Ltd. | ZhitongTechnology |
| SichuanKangjiatongTechnologyCo.,Ltd. | Kangjiatong |
| ShenzhenKonkaElectronicsTechnologyCo.,Ltd. | ElectronicsTechnology |
| GuangDongXingDaHongYeElectronicCo.,Ltd. | XingDaHongYe |
| ShanghaiXinfengZhuoqunPCBCo.,Ltd. | ShanghaiXinfeng |
| AnhuiKonkaZhilianE-CommerceCo.,Ltd. | AnhuiZhilian |
| NanjingKonkaSmartTechnologyCo.,Ltd. | NanjingKonka |
| ShenzhenYouzhihuiTechnologyCo.,Ltd. | Youzhihui |
| ShenzhenXiaojiaTechnologyCo.,Ltd. | XiaojiaTechnology |
| HaimenKonkaSmartTechnologyCo.,Ltd. | HaimenKonka |
| ChengduKonkaSmartTechnologyCo.,Ltd. | ChengduKonkaSmart |
| ChengduKonkaElectronicsCo.,Ltd. | ChengduKonkaElectronics |
| ShandongEconTechnologyCo.,Ltd. | EconTechnology |
| BeijingEconRunfengTechnologyCo.,Ltd. | BeijingEcon |
| ShanghaiJiyiEnvironmentalTechnologyCo.,Ltd. | ShanghaiJiyi |
| BinzhouEconZhongkeEnvironmentalProtectionTechnologyCo.,Ltd. | BinzhouEconZhongke |
| LaizhouLairunHoldingCo.,Ltd. | LairunHolding |
| LaizhouLairunEnvironmentalProtectionCo.,Ltd. | LairunEnvironmentalProtection |
| LaizhouLairunSewageTreatmentCo.,Ltd. | LairunSewage |
| LaizhouBinhaiSewageTreatmentCo.,Ltd. | BinhaiSewage |
| LaizhouLairunHeatingCo.,Ltd. | LairunHeating |
| LaizhouLairunEnvironmentalEnergyCo.,Ltd. | LairunEnvironmentalEnergy |
| EconEnvironmentalEngineeringCo.,Ltd. | EconEnvironmentalEngineering |
| RushanYikeWaterEnvironmentManagementCo.,Ltd. | RushanYike |
| BinzhouWeiyijieEnvironmentalTechnologyCo.,Ltd. | BinzhouWeiyijie |
| BinzhouBeihaiJingmaiIndustrialDevelopmentCo.,Ltd. | BinzhouBeihaiJingmai |
| YantaiChunzhiranEnvironmentalTechnologyCo.,Ltd. | Chunzhiran |
| LaizhouLairunHuayangHeatingCo.,Ltd. | LairunHuayangHeating |
| DonggangKangrunEnvironmentManagementCo.,Ltd. | DonggangKangrun |
| YantaiKangrunHonghuiPhotovoltaicPowerGenerationCo.,Ltd. | YantaiKangrun |
| QingdaoKangrunHonghuiPhotovoltaicPowerGenerationCo.,Ltd. | QingdaoKangrun |
| DayiKangrunWaterCo.,Ltd. | DayiKangrunWater |
| SuiningPengxiKangrunEnvironmentManagementCo.,Ltd. | SuiningPengxiKangrun |
| SubeiMongolianAutonomousCountyKangrunWaterCo.,Ltd. | SubeiKangrunWater |
| WeifangSihaiKangrunInvestmentandOperationCo.,Ltd. | WeifangSihaiKangrun |
| FunanQingyuanWaterConstructionandOperationCo.,Ltd. | FunanQingyuanWater |
| LushanKangrunEnvironmentMangementCo.,Ltd. | LushanKangrunEnvironment |
| FunanKangrunWaterCo.,Ltd. | FunanKangrunWater |
| WuhanRunyuanSewageTreatmentCo.,Ltd. | WuhanRunyuanSewage |
| TongchuanKangrunHonghuiEnvironmentManagementCo.,Ltd. | TongchuanKangrunHonghui |
| BoxingXingkangEnvironmentalTechnologyCo.,Ltd. | BoxingXingkangEnvironmental |
| TingyuanEnvironmentalTechnology(Shanghai)Co.,Ltd. | TingyuanEnvironmental |
| YantaiKangyunIndustryDevelopmentCo.,Ltd. | YantaiKangyun |
| YantaiLaikangIndustryDevelopmentCo.,Ltd. | YantaiLaikang |
| KonkaHuanjia(Dalian)EnvironmentalTechnologyCo.,Ltd. | KonkaHuanjia |
| KonkaHuanjia(Henan)EnvironmentalTechnologyCo.,Ltd. | KonkaHuanjia(Henan) |
| ShanghaiKonkaIndustrialCo.,Ltd. | ShanghaiKonka |
| ChuzhouKangyongHealthIndustryDevelopmentCo.,Ltd. | ChuzhouKangyong |
| YantaiKonkaIndustrialCo.,Ltd. | YantaiKonkaIndustrial |
| YantaiKangjinTechnologyDevelopmentCo.,Ltd. | YantaiKangjin |
| ShandongKangxinIndustrialDevelopmentCo.,Ltd. | ShandongKangxin |
| JiangxiKonkaNewMaterialTechnologyCo.,Ltd. | JiangxiKonka |
| JiangxiXinfengMicrocrystallineJadeCo.,Ltd. | XinfengMicrocrystalline |
| JiangxiGoldenPhoenixNanoCrystallizedGlassCo.,Ltd. | NanoCrystallizedGlass |
| ShenzhenNianhuaEnterpriseManagementCo.,Ltd. | ShenzhenNianhua |
| ShenzhenKONSEMICo.,Ltd. | ShenzhenKONSEMI |
| ShenzhenMeixinSemiconductorTechnologyCo.,Ltd. | ShenzhenMeixin |
| ChongqingZhengmaoSemiconductorCo.,Ltd. | ZhengmaoSemiconductor |
| HefeiKONSEMIStorageTechnologyCo.,Ltd. | HefeiKONSEMI |
| HefeiYiheElectronicCo.,Ltd. | YiheElectronic |
| ChongqingKonkaTechnologyDevelopmentCo.,Ltd. | ChongqingKonka |
| ShenzhenKonkaHuiyingTechnologyCo.,Ltd. | ShenzhenHuiyingTechnology |
| ChongqingKonkaHuiyingTechnologyCo.,Ltd. | ChongqingHuiyingTechnology |
| ShenzhenKonkaEco-DevelopmentInvestmentCo.,Ltd. | KonkaEco-Development |
| SuiningKonkaIndustrialParkDevelopmentCo.,Ltd. | SuiningKonkaIndustrialPark |
| KonkaRongheIndustrialTechnology(Foshan)Co.,Ltd. | KonkaRonghe |
| SuiningKonkaElectronicTechnologicalInnovationCo.,Ltd. | SuiningElectronicTechnologicalInnovation |
| DongguanKonkaInvestmentCo.,Ltd. | DongguanKonkaInvestment |
| ShenzhenKonkaChuangzhiElectricalAppliancesCo.,Ltd. | ShenzhenChuangzhiElectricalAppliances |
| Kanghong(Yantai)EnvironmentalProtectionTechnologyCo.,Ltd. | Kanghong(Yantai)EnvironmentalProtection |
| Kanghong(Yantai)EnvironmentalProtectionTechnologyIndustrialParkCo.,Ltd. | Kanghong(Yantai)EnvironmentalProtectionIndustrialPark |
| ChongqingKangxingruiEnvironmentalProtectionTechnologyCo.,Ltd. | ChongqingKangxingrui |
| ChongqingKonkaOptoelectronicTechnologyInstituteCo.,Ltd. | ChongqingOptoelectronicInstitute |
| KonkaXinyingSemiconductorTechnology(Shenzhen)Co.,Ltd. | XinyingSemiconductor |
| Jiangkang(Shanghai)TechnologyCo.,Ltd. | Jiangkang(Shanghai)Technology |
| ChongqingKonkaRealEstateDevelopmentCo.,Ltd. | ChongqingRealEstateDevelopment |
| ChongqingKonkaXingyiRealEstateCo.,Ltd. | ChongqingXingyiRealEstate |
| ChongqingKonkaFuzeRealEstateCo.,Ltd. | ChongqingFuzeRealEstate |
| NingboKanghanruiElectricalAppliancesCo.,Ltd. | NingboKanghanruiElectricalAppliances |
| ShenzhenKonkaZhizaoTechnologyCo.,Ltd. | KonkaZhizao |
2.AchecklistofcorporatenamesandtheirabbreviationsmentionedinthisReportIII.BasisforthePreparationofFinancialStatements
1.BasicforthepreparationWiththegoing-concernassumptionasthebasisandbasedontransactionsandothereventsthatactuallyoccurred,theCompanypreparedfinancialstatementsinaccordancewithTheAccountingStandardsforBusinessEnterprisesissuedbytheMinistryofFinanceandotherregulationsaswellastheaccountingpoliciesandestimationsstipulatedintheNoteIV“SignificantAccountingPoliciesandEstimations”.
2.Going-concernTheCompanyhastheoperationhistorywithprofitsandfinancialsupport.Thus,itisreasonabletopreparethefinancialstatementsbasedongoing-concern.IV.ImportantAccountingPoliciesandEstimationsThespecificaccountingpoliciesandaccountingestimatesformulatedbythecompanybasedontheactualproductionandoperationcharacteristicsincludetherecognitionandmeasurementofbaddebtprovisionforreceivables,themeasurementofissuedinventories,theclassificationoffixedassetsanddepreciationmethods,amortizationofintangibleassets,revenuerecognitionandmeasurement,etc.
1.StatementofCompliancewiththeAccountingStandardsforBusinessEnterprisesThefinancialstatementspreparedbytheCompanyareincompliancewithincompliancewiththeAccountingStandardsforBusinessEnterprises,whichfactuallyandcompletelypresenttheCompany’sfinancialpositions,businessresultsandcashflows,andotherrelevantinformation.
2.FiscalPeriodTheCompany’sfiscalyearstartsonJanuary1andendsonDecember31ofeveryyearaccordingtotheGregoriancalendar.
3.OperatingCycleAnoperatingcyclefortheCompanyis12months,whichisalsotheclassificationcriterionfortheliquidityofitsassetsandliabilities.
4.RecordingCurrencyTheCompanyadoptedRenminbiasthebookkeepingbasecurrency.
5.AccountingTreatmentMethodsforBusinessCombinationsundertheSameControlornotundertheSameControlAsthecombiningparty,theassetsandliabilitiesobtainedbytheCompanyinabusinesscombinationunderthesamecontrolshallbemeasuredonthebasisoftheircarryingvalueinthefinalcontrollingpartyonthecombiningdate.Asforthebalancebetweenthecarryingvalueofthenetassetsobtainedandthecarryingvalueoftheconsiderationpaidbyit,thecapitalreserveshallbeadjusted.Ifthecapitalreserveisnotsufficienttobeoffset,theretainedearningsshallbeadjusted.Thedirectcosts
| AnhuiKonkaDebaoNewMaterialTechnologyCo.,Ltd. | DebaoNewMaterialTechnology |
| SuiningJiarunRealEstateCo.,Ltd. | SuiningJiarunRealEstate |
| ChuzhouKangxinHealthIndustryDevelopmentCo.,Ltd. | ChuzhouKangxinHealthIndustry |
| HubeiKangxinglongEnvironmentalProtectionCo.,Ltd. | KangxinglongEnvironmentalProtection |
| RushanEconShellTechnologyIncubatorCo.,Ltd. | RushanEconShell |
| YantaiHuanhaiXinzeEnterpriseManagementCo.,Ltd. | YantaiHuanhaiXinze |
incurredbythemergingpartyforthebusinesscombinationshallbeincludedinthecurrentprofitandlosswhenincurred.Theidentifiableassets,liabilitiesandcontingentliabilitiesoftheacquireeacquiredinthebusinesscombinationunderdifferentcontrolshallbemeasuredatfairvalueontheacquisitiondate.Themergercostisthesumofthefairvalueofcashornon-cashassets,liabilitiesissuedorassumed,equitysecuritiesissued,etc.paidbytheCompanyonthepurchasedatetogaincontroloverthepurchasedpartyandalldirectlyrelatedexpensesincurredinthebusinesscombination(Themergecostofbusinesscombinationrealizedstepbystepthroughmultipletransactionsisthesumofeverysingletransaction’scost).Thebalancethatthecombinedcostgreaterthanthefairvalueshareoftheidentifiablenetassetsofthepurchasedpartyobtainedinthecombinationshallberecognizedasgoodwill;Whenthemergercostislessthanthefairvalueshareoftheidentifiablenetassetsoftheacquireeacquiredinthemerger,thefairvalueofallidentifiableassets,liabilitiesandcontingentliabilitiesacquiredinthemerger,andnon-cashassetsofthemergerconsiderationorequitysecuritiesissued,etc.shallbereviewedfirst.Afterreview,ifthemergercostisstilllessthanthefairvalueshareoftheidentifiablenetassetsoftheacquireeacquiredinthemerger,thedifferenceshallbeincludedinthenon-operatingincomeofthemergerperiod.Intermediaryexpensessuchasauditing,legalservices,evaluationandconsultingandothermanagementexpensesincurredforabusinesscombinationareincludedinthecurrentprofitandlosswhenincurred.
6.MethodsforPreparingConsolidatedFinancialStatementsThescopeofconsolidationincludestheCompanyanditsallsubsidiaries.ThefinancialstatementsofsubsidiariesareadjustedinaccordancewiththeaccountingpoliciesandaccountingperiodoftheGroupduringthepreparationoftheconsolidatedfinancialstatements,wheretheaccountingpoliciesandtheaccountingperiodsareinconsistentbetweentheGroupandsubsidiaries.Allsignificantinternaltransactions,currentbalancesandunrealizedprofitswithinthescopeofconsolidationshallbeoffsetwhenpreparingtheconsolidatedstatement.Thesharesofthesubsidiary'sowner'sequitythatdonotbelongtotheparentcompanyandthesharesofminorityshareholders'equityincurrentnetprofitandloss,othercomprehensiveincomeandtotalcomprehensiveincomeshallberespectivelylistedintheconsolidatedfinancialstatement"Minorityshareholders'equity,minorityshareholders'profitandloss,othercomprehensiveincomethatbelongstominorityshareholdersandtotalcomprehensiveincomethatbelongstominorityshareholders".Forsubsidiariesacquiredthroughmergerofenterprisesunderthesamecontrol,theiroperatingresultsandcashflowsareincludedintheconsolidatedfinancialstatementsfromthebeginningofthecurrentmergerperiod.Whenpreparingthecomparativeconsolidatedfinancialstatements,therelevantitemsinthefinancialstatementsofthepreviousyearshallbeadjustedasiftheconsolidatedreportingentityhadexistedsincethefinalcontrollingpartybegantocontrolit.Attheoccasionoftheequityoftheinvesteeunderthesamecontrolisacquiredstepbystepthroughmultipletransactions,andfinallyformthebusinesscombination,whenpreparingtheconsolidatedstatement,itshallbedeemedastheadjustmentismadeinthecurrentstatewhenthefinalcontrollingpartystartstocontrol.Andwhencompilingthecomparativereport,theassetsandliabilitiesofthemergedpartyshallbemergedintothecomparativestatementoftheconsolidatedfinancialstatementsoftheconsolidatedCompanywithoutanyearlierthanthetimewhentheCompanyandthemergedpartyareunderthecontroloftheultimatecontrollingparty,andthecombinednetincreasedassetsshallbeadjustedtotherelevantitemsunderowners'equityinthecomparativestatements.Inordertoavoidthere-calculationofthenetassetsvalueofthemergedparty,thelong-termequityinvestmentheldbytheCompanybeforethemerger,theconfirmedrelevantprofitandlossonthesamepartywiththeCompanyandthemergedpartyonthedateofacquisitionoftheoriginalequityfromthefinalcontroldatetothemergerdate,andchangesofothercomprehensiveincomeandothernetassetsshalloffsetthebeginningretainedearningsandcurrentprofitsandlossesofthecomparativestatementperiodrespectively.Forsubsidiariesacquiredthroughbusinesscombinationunderthedifferentcontrol,theoperatingresultsandcashflowshallbeincludedintheconsolidatedfinancialstatementsfromthedatewhen
theCompanyobtainsthecontrolright.Whenpreparingtheconsolidatedfinancialstatements,thefinancialstatementsofthesubsidiariesshallbeadjustedonthebasisofthefairvalueoftheidentifiableassets,liabilitiesandcontingentliabilitiesdeterminedontheacquisitiondate.Attheoccasionoftheequityoftheinvesteeunderdifferentcontrolisacquiredstepbystepthroughmultipletransactionsandeventuallyformthebusinesscombination,whenpreparingtheconsolidatedstatement,theequityoftheinvesteeheldbeforethepurchasedateisre-measuredaccordingtothefairvalueoftheequityonthepurchasedate,andthedifferencebetweenthefairvalueanditsbookvalueisincludedinthecurrentinvestmentincome.Theequityoftheacquireeheldbeforetherelevantpurchasedateinvolvesothercomprehensiveincomeundertheequitymethodandotherchangesinowner'sequityotherthannetprofitandloss,othercomprehensiveincomeandprofitdistribution,whichareconvertedintoinvestmentprofitandlossinthecurrentperiodofthepurchasedate,exceptforothercomprehensiveincomearisingfromtheremeasurementofdefinedbenefitplans'snetliabilitiesorchangesinnetassetsbytheinvestee.TheCompanypartiallydisposesoflong-termequityinvestmentsinsubsidiarieswithoutlosingcontrol,whenpreparingtheconsolidatedfinancialstatements,thedifferencebetweenthedisposalpriceandtheshareofnetassetsthatthesubsidiarieshavecontinuouslycalculatedsincethedateofpurchaseorthedateofconsolidationiscorrespondingtothedisposaloflong-termequityinvestments.Thecapitalpremiumorequitypremiumisadjusted.Ifthecapitalreserveisinsufficienttooffset,theretainedearningsareadjusted.IftheCompanylosescontrolovertheinvesteeduetothedisposalofsomeequityinvestmentsandotherreasons,theremainingequityshallbere-measuredatitsfairvalueonthedateoflossofcontrolwhenpreparingtheconsolidatedfinancialstatements.Thedifferencebetweenthesumoftheconsiderationobtainedfromthedisposalofequityandthefairvalueoftheremainingequity,minustheshareofthenetassetsoftheoriginalsubsidiarycalculatedonthebasisoftheoriginalshareholdingratioandcontinuouslycalculatedfromthedateofpurchaseormerger,isincludedintheinvestmentprofitandlossofthecurrentperiodwhenthecontrolrightislost,andgoodwillisoffset.Othercomprehensiveincomerelatedtotheoriginalsubsidiary'sequityinvestment,etc.,willbetransferredtothecurrentinvestmentprofitandlosswhenthecontrolrightislost.IftheCompanydisposesoftheequityinvestmentinasubsidiarycompanystepbystepthroughmultipletransactionsuntilthelossofcontrolright,ifthetransactionsofthedisposaloftheequityinvestmentinasubsidiarycompanyuntilthelossofcontrolrightbelongtoapackagetransaction,thetransactionsshallbetreatedastransactionsofthedisposalofthesubsidiarycompanyandthelossofcontrolrightforaccounting.However,thedifferencebetweenthedisposalpriceandtheshareofthesubsidiary'snetassetscorrespondingtothedisposalinvestmentbeforethelossofcontrolrightisrecognizedasothercomprehensiveincomeintheconsolidatedfinancialstatements,andistransferredtotheinvestmentprofitandlossofthecurrentperiodwhenthecontrolrightislost.
7.ClassificationofJointArrangementsandAccountingTreatmentofJointOperationsTheCompanyclassifiesjointarrangementsintojointoperationsandjointventures.Forajointoperation,theCompany,asajointoperator,recognizestheassetsandliabilitiesthatitholdsandbearsinthejointoperation,andrecognizesthejointly-heldassetsandjointly-borneliabilitiesaccordingtotheCompany’sstakeinthejointoperation;recognizesrelevantincomeandexpenseaccordingtotheCompany’sstakeinthejointoperation.WhentheCompanypurchasesorsellstheassetsnotconstitutingbusinesswiththejointoperation,theCompanyonlyrecognizedstheshareoftheotherjontoperatorsinthegainsandlossesarisingfromthetransaction.
8.CashandCashEquivalentsIntheCompany’sunderstanding,thecashinthecashflowstatementincludescashonhandanddepositsthatcanbeusedforcover,thecashequivalentsinthecashflowstatementincludehighcirculatinginvestmentsheldwithinthreemonthswhichareeasilyconvertibleintoknownamountofcashandwhoserisksinchangeofvalueareminimal.
9.ForeignCurrencyBusinessesandTranslationofForeignCurrencyFinancialStatements
(1)ConversionmethodforforeigncurrencytransactionsTheforeigncurrencytransactionsthatoccurredinthecompanyareconvertedintotheamountofthebookkeepingstandardcurrencyaccordingtotheexchangerateatthebeginningofthetransactionday(usuallyrefertothemiddlepriceoftheforeignexchangepriceofthedayannouncedbythePeople'sBankofChina),butthecompany'sforeigncurrencyexchangebusinessoccursOrtransactionsinvolvingforeigncurrencyexchangeshallbeconvertedintotheamountoftherecordingcurrencyinaccordancewiththeexchangerateactuallyadopted.
(2)Conversionmethodforforeigncurrencymonetaryitemsandforeigncurrencynon-monetaryitemsOnthebalancesheetdate,foreigncurrencymonetaryitemsareconvertedatthespotexchangerateonthebalancesheetdate.Theresultingexchangedifferences,exceptfor:①TheexchangedifferencesarisingfromforeigncurrencyspecialborrowingsrelatedtotheacquisitionandconstructionofassetsthatmeetthecapitalizationrequirementsarebasedonTheprincipleofcapitalizationofborrowingcosts;②Exchangedifferenceofhedginginstrumentsusedforeffectivehedgeofnetinvestmentinoverseasoperations(thedifferenceisincludedinothercomprehensiveincome,anditisnotrecognizedascurrentprofitorlossuntilthenetinvestmentisdisposedof);and③Foreigncurrencymonetaryitemsforsale,exceptforamortizedcosts,theexchangedifferencesarisingfromchangesinotherbookbalancesareincludedinothercomprehensiveincome,andareincludedinthecurrentprofitandloss.Ifthepreparationofconsolidatedfinancialstatementsinvolvesoverseasoperations,ifthereisaforeigncurrencymonetaryitemthatsubstantiallyconstitutesanetinvestmentinoverseasoperations,theexchangedifferenceduetoexchangeratechangesisincludedinothercomprehensiveincome;whendisposingofoverseasoperations,itistransferredtothecurrentprofitandloss..Non-monetaryitemsdenominatedinforeigncurrenciesthataremeasuredathistoricalcostarestillmeasuredusingtheamountoftherecordingcurrencyconvertedatthespotexchangerateonthetransactiondate.Foreigncurrencynon-monetaryitemsmeasuredatfairvaluearetranslatedatthespotexchangerateonthedatewhenthefairvalueisdetermined,andthedifferencebetweentheamountoftherecordingstandardcurrencyafterconversionandtheamountoftheoriginalrecordingstandardcurrencyistreatedasachangeinfairvalue(includingexchangeratechanges),Includedinthecurrentprofitorlossorrecognizedasothercomprehensiveincome.
(3)ConversionmethodofforeigncurrencyfinancialstatementsIfthepreparationofconsolidatedfinancialstatementsinvolvesoverseasoperations,ifthereisaforeigncurrencymonetaryitemthatsubstantiallyconstitutesanetinvestmentinoverseasoperations,theexchangedifferencearisingfromchangesinexchangeratesisrecognizedas"foreigncurrencystatementtranslationdifference"asothercomprehensiveincome;disposalofoverseasoperationsAtthetime,itisincludedinthecurrentprofitandlossofdisposal.ForeigncurrencyfinancialstatementsforoverseasoperationsareconvertedintoRMBstatementsinthefollowingways:Assetsandliabilitiesitemsinthebalancesheetareconvertedatthespotexchangerateonthebalancesheetdate;shareholders’equityitemsotherthan“undistributedprofits”itemsUsethespotexchangerateatthetimeofconversion.Theincomeandexpenseitemsintheprofitstatementaretranslatedatthecurrentaverageexchangerateonthetransactiondate.Theundistributedprofitatthebeginningoftheperiodistheundistributedprofitattheendoftheperiodafterthepreviousyear'sconversion;theundistributedprofitattheendoftheperiodiscalculatedandpresentedaccordingtotheconvertedprofitdistributionitems;thetotaldifferencebetweentheassetsandliabilitiesandshareholders'equityitemsafterconversion,Asatranslationdifferenceinforeigncurrencystatements,isrecognizedasothercomprehensiveincome.Whendisposingofoverseasoperationsandlosingcontrol,thetranslationdifferencesofforeigncurrencystatementsrelatedtotheoverseasoperationslistedintheshareholders’equityitemsinthebalancesheetshallbetransferredtothecurrentprofitorlossinfullorinproportiontothedisposaloftheoverseasoperations.Foreigncurrencycashflowsandcashflowsofoverseassubsidiariesaretranslatedatthecurrent
averageexchangerateonthecashflowdate.Theimpactofexchangeratechangesoncashisusedasanadjustmentitemandispresentedseparatelyinthecashflowstatement.Theopeningamountandtheactualnumberofthepreviousperiodarelistedbasedontheamountconvertedfromthefinancialstatementsofthepreviousperiod.Whendisposingofalltheowner'sequityofthecompany'soverseasoperationsorlosingcontrolofoverseasoperationsduetothedisposalofpartoftheequityinvestmentorotherreasons,theshareholders'equityitemslistedinthebalancesheet,relatedtotheoverseasoperations,areattributedtothemother.Theforeigncurrencystatementtranslationdifferencesofthecompany'sowner'sequityarealltransferredtothecurrentprofitandlossdisposal.Whenthedisposalofpartoftheequityinvestmentorotherreasonsleadstoareductionintheproportionofoverseasoperatingequityheldbutwithoutlossofcontroloveroverseasoperations,theforeigncurrencystatementtranslationdifferencerelatedtotheoverseasoperatingdisposalportionwillbevestedinminorityshareholders’equityandnottransferredtocurrentprofitorloss.Whendisposingofpartoftheequityofanoverseasoperationasanassociateorjointventure,theforeigncurrencystatementtranslationdifferencerelatedtotheoverseasoperationistransferredtothecurrentprofitorlossinproportiontothedisposaloftheoverseasoperation.
10.FinancialAssetsandFinancialLiabilitiesTheCompanyrecognizesafinancialassetorliabilitywhenitbecomesapartyoftherelevantfinancialinstrumentcontract.
(1)Financialassets
1)Classification,recognitionandmeasurementoffinancialassetsTheCompanyclassifiesthefinancialassetsintofinancialassetsmeasuredatamortizedcost,financialassetsmeasuredbythefairvalueandthechangesrecordedinothercomprehensiveincomeandfinancialassetsatfairvaluethroughprofitorlossbasedonthebusinessmodelforfinancialassetsmanagementandcharacteristicsofcontractualcashflowoffinancialassetsTheCompanyclassifiedthefinancialassetsmeetingthefollowingconsitionsatthesametimeasfinancialassetsatamortizedcost:①ThebusinessmodeoftheCompanytomanagethefinancialassetstargetsatcollectingthecontractualcashflow.②Thecontractofthefinancialassetsstipulatesthatthecashflowgeneratedinthespecificdateisthepaymentoftheinterestbasedontheprincipalandoutstandingprincipalamount.Thesefinancialassetsinitiallymeasuredatfairvalueandrelevanttransactioncostshallbeincludedintotheinitialrecognizedamountandsubsequentlymeasuredatamortizedcost.Exceptforthosedesignatedtobehedgeitems,thedifferencebetweentheinitialrecognizedamontandtheamountdueshallbeamortizedatactualinterestrateandtheiramortization,impairmentandexchangegainandlossaswellasgainsorlossesarisingfromderecognitionshallberecordedintothecurrentprofitorloss.TheCompanyclassifiedthefinancialassetsmeetingthefollowingconsitionsatthesametimeasfinancialassetsatfairvaluethroughothercomprehensiveincome:①TheBusinessmodeformanagingfinancialassetsoftheCompanytakescontractcashflowcollectedastargetandsellingastarget.②Thecontractofthefinancialassetsstipulatesthatthecashflowgeneratedinthespecificdateisthepaymentoftheinterestbasedontheprincipalandoutstandingprincipalamount.Thesefinancialassetsinitiallymeasuredatfairvalueandrelevanttransactioncostshallbeincludedintotheinitialrecognizedamount.Exceptforthosedesignatedashedgeditems,asforthesefinancialassets,exceptforgainsorlossesoncreditimpairment,exchangegainandlossandinterestoffinancialassetsmeasuredatactualinterstrate,othergainsorlossesgeneratedshallberecordedintoothercomprehensiveincome.Whenderecognized,theaccumulatedgainsandlossesoriginallyrecordedintoothercomprehensiveincomeshallbetransferredoutintothecurrentprofitorloss.TheCompanyrecognizesinterestincomeaccordingtotheeffectiveinterestratemethod.Interestincomeiscalculatedanddeterminedaccordingtothebookbalanceofthefinancialassetmultipliedbytheactualinterestrate,exceptforthefollowingcircumstances:①Forthefinancialassetwithcreditimpairmentthathasbeenpurchasedororiginated,fromtheinitialrecognition,theinterestincomeiscalculatedanddeterminedaccordingtotheamortizedcostofthefinancialassetandthe
actualinterestrateadjustedbycredit.②Forfinancialassetspurchasedororiginatedthathavenotsufferedcreditimpairmentbuthavesufferedcreditimpairmentinsubsequentperiods,theinterestincomeshallbecalculatedanddeterminedaccordingtotheamortizedcostandactualinterestrateofthefinancialassetsinsubsequentperiods.TheCompanydesignatesnon-transactionalinvestmentinequityinstrumentsasfinancialassetsatfairvaluethroughothercomprehensiveincome.Thosedesignatednon-transactionalinvestmentinequityinstrumentsbytheCompanyisinitiallymeasuredatfairvalueandrelevanttransactioncostshallberecordedintotheinitialrecognizedamount.Exceptfordividends(excludingthosebelongingtorecoveryofinvestmentcost)whichshallberecordedintothecurrentprofitorloss,otherrelevantgainsandlosses(includingexchangegainsandlosses)shallberecordedintoothercomprehensiveincomeandcannotbetransferredintothecurrentprofitorlosssubsequently.Whenderecognized,theaccumulatedgainsorlossesoriginallyrecordedintoothercomprehensiveincomeshallbetransferredoutintoretainedearnings.TheCompanyclassifiesfinancialassetsnotbelongingtoabovetwoasfinancialassetsatfairvaluethroughprofitorlosswhichshallbeinitiallymeasuredatfairvalueandrelevanttransactioncostshallbedirectlyrecordedintothecurrentprofitorloss.Gainsorlossesarisingfromthesefinancialassetsshallberecordedintothecurrentprofitorloss.ThecontingentconsiderationrecognizedbytheCompanyinthebusinesscombinationnotunderthesamecontrolwhichconstitutesafinancialassetshallbeclassifiedasthefinancialassetatfairvaluethroughprofitorloss.
2)RecognitionandmeasurementoffinancialassetstransferTheCompanyderecognizesafinancialassetwhenoneofthefollowingconditionsismet:
1)therightstoreceivecashflowsfromtheassethaveexpired;2)theenterprisehastransferreditsrightstoreceivecashflowsfromtheassettoathirdpartyunderapass-througharrangement;or3)theenterprisehastransferreditsrightstoreceivecashflowsfromtheassetandeither(a)hastransferredsubstantiallyalltherisksandrewardsoftheasset,or(b)hasneithertransferrednorretainedsubstantiallyalltherisksandrewardsoftheasset,buthastransferredcontroloftheasset.
Iftheoveralltransferoffinancialassetsfulfillstherequirementsforderecognition,thedifferencebetweenthebookvalueofthetransferredfinancialassetsandthesumoftheconsiderationreceivedduetothetransferandthecorrespondingderecognitionpartoftheaccumulatedamountoffairvaluechangesoriginallydirectlyincludedinothercomprehensiveincome(thecontracttermsinvolvingthetransferredfinancialassetsstipulatethatthecashflowgeneratedonaspecificdateisonlythepaymentoftheprincipalandinterestbasedontheunpaidprincipalamount)shallbeincludedinthecurrentprofitsandlosses.
Ifthepartialtransferoffinancialassetssatisfiestheconditionsforterminationconfirmation,theentirebookvalueofthetransferredfinancialassetswillbeapportionedbetweentheterminationconfirmationportionandthenon-terminationconfirmationportionaccordingtotheirrelativefairvalues,andtheconsiderationreceivedforthetransferAndtheamountcorrespondingtotheterminationoftherecognitionofthecumulativeamountofchangesinfairvalueoriginallyincludedinothercomprehensiveincomethatshouldbeapportionedtothederecognitionpartAndthepaymentofinterestbasedontheoutstandingprincipalamount),andthedifferencebetweenthetotalbookvalueoftheaforesaidfinancialassetsallocatedisincludedinthecurrentprofitandloss.
(2)Finanicalliabilities
1)Classification,recognitionandmeasurementoffinancialliabilitiesTheCompany’sfinancialliabilitiesare,oninitialrecognition,classifiedintofinancialliabilitiesatfairvaluethroughprofitorlossandotherfinancialliabilities.Financialliabilitiesatfairvaluethroughprofitorlossincludeheld-for-tradingfinancialliabilitiesandfinancialliabilitiesdesignatedattheinitialrecognitiontobemeasuredbythefairvalueandtheirchangesarerecordedinthecurrentprofitorloss(therelevantclassificationbasisshallbedisclosedreferringtotheclassificationbasisforfinancialassets).Thesubsequentmeasurementshallbeatfairvalueandgainsorlossesarisingfromchangesinfairvalueandthedividendsandinterestexpenserelatedtothefinancialliabilityshallbethecurrentprofitorloss.Otherfinancialliabilities(discloserelevantdetailsbasedonactualsituation)shallbesubsequently
measuredatamortizedcostwithactualinterestrate.TheCompanyclassifiesfinancialliabilitiesexceptforthefollowingitemsasfinancialliabilitiesatamortizedcost:
①Financialliabilitiesatfairvaluethroughprofitorlossincludingheld-for-tradingfinancialliabilities(includingthederivativeinstrumentsbelongingtofinancialliabilities)anddesignatedfinancialliabilitiesatfairvaluethroughprofitorloss.②Financialliabilitiesarisingfromthetransferoffinancialassetsnotmeetingthederecognitionconditionsorcontinuousinvolvementinthetransferredfinancialassets.③Financialguaranteecontractnotbelongingtocasesofabove①or②andloancommitmentsatinterestratelowerthanthemarketratenotbelongingtothecasein①.TheCompanytreatsthefinancialliabilityarisingfromcontingentconsiderationrecognizedasthepurchasepartyinthebusinesscombinationnotunderthesamecontrolatfairvalueandchangesthereofshallberecordedintothecurrentprofitorloss.
2)DerecognitionoffinancialliabilitiesIncaseofcurrentobligationoffinancialliabilities(orpartialfinancialliabilities)beingterminated,derecognitionofsuchfinancialliabilities(orpartialfinancialliabilities)isconductedbytheCompany.IftheCompany(borrower)concludesanagreementwiththelendertoreplaceexistingfinancialliabilitieswithnewonesandcontacttermsofnewfinancialliabilitiesaredifferentfromthoseofexistingfinancialliabilities,derecognitionofexistingfinancialliabilitiesandrecognitionofnewfinancialliabilitiesshallbeconducted.Incaseofmaterialalterationofcontracttermsofexistingfinancialliabilities(partialfinancialliabilities)bytheCompany,derecognitionofexistingfinancialliabilitiesandrecognitionofnewfinancialliabilitiesaspermodifiedtermsshallbeconducted.Incaseofderecognitionoffinancialliabilities(partialfinancialliabilities),theCompanyincludesthebalancebetweenitscarryingvalueandpaymentconsiderationintothecurrentprofitorloss.
(3)Determinationoffinancialassetsandliabilities’fairvalueFairvalueistheamountforwhichanassetcouldbeexchanged,oraliabilitysettled,betweenknowledgeable,willingpartiesinanarm’slengthtransaction.Forafinancialinstrumentwhichhasanactivemarket,theCompanyusesquotedpriceintheactivemarkettoestablishitsfairvalue.Thequotedpriceintheactivemarketreferstothepricethatcanberegularlyobtainedfromexchangemarket,agencies,industryassociations,pricingauthorities;itrepresentsthefairmarkettradingpriceintheactualtransaction.Forafinancialinstrumentwhichdoesnothaveanactivemarket,theCompanyestablishesfairvaluebyusingavaluationtechnique.Valuationtechniquesincludeusingrecentarm’slengthmarkettransactionsbetweenknowledgeable,willingparties,referencetothecurrentfairvalueofanotherinstrumentthatissubstantiallythesame,discountedcashflowanalysisandoptionpricingmodels.TheCompanymeasuresinitiallyandsubsequentlythefairvalueofaninterestrateswapatthevalueofacompetitor’sinterestrateswapquotedbyarecognizedfinancialinstitutionasattheCompany’sbalancesheetdateinaccordancewiththeprincipleofconsistency.Invaluation,theCompanyadoptsapplicablevaluationtechniquessupportedbysufficientutilizabledataandotherinformationincurrentcircumstances,selectsinputvaluesconsistentwithassetorliabilitycharacteristicsconsideredinrelevantassetorliabilitytransactionsofmarketparticipatorsandprioritizestheapplyingrelevantobservableinputvalues.Unobservableinputvaluesshallnotbeappliedunlessrelevantobservableinputvaluesarenotaccessibleorfeasible.AnequityinstrumentisanycontractthatevidencesaresidualinterestintheassetsoftheCompanyafterdeductingallofitsliabilities.Theconsiderationreceivedfromissuingequityinstruments,netoftransactioncosts,areaddedtoshareholders’equity.Alltypesofdistribution(excludingstockdividends)madebytheCompanytoholdersofequityinstrumentsaredeductedfromshareholders’equity.TheCompanydoesnotrecognizeanychangesinthefairvalueofequityinstruments.Anequityinstrumentdistributingdividendsduringtheperiodofcontinuedexistence(includingthe“interest”generatedfromthoseclassifiedasequityinstrument)shallbetreatedasprofitdistribution.
(4)Offsettingfinancialassetsandfinancialliabilities
TheCompany’sfinancialassetsandliabilitiesshallbeseparatelypresentedinthebalancesheetandnotsetoffeachother.Butwhenmeetingthefollowingconditionsatthesametime,thenetamountafteroffsetshallbepresentedinthebalancesheet:(1)TheCompanyhasthestatutoryrighttosetoffrecognizedamountwhichiscurrentlyexecutable;(2)TheCompanyplanstosetllewiththenetamountorrealizethefinancialassetandpayoffthefinancialliabilitysimultaneously.
(5)TheDistinctionBetweenFinancialLiabilitiesandEquityInstrumentsandRelatedTreatmentMethodsTheCompanydistinguishesthefinancialliabilitiesandequityinstrumentsaccordingtothefollowingprinciples:(1)IftheCompanycannotunconditionallyavoidperformingacontractualobligationbydeliveringcashorotherfinancialassets,thecontractualobligationmeetsthedefinitionoffinancialliabilities.Althoughsomefinancialinstrumentsdonotexplicitlyincludethetermsandconditionsoftheobligationtodelivercashorotherfinancialassets,theymayindirectlyformcontractualobligationsthroughothertermsandconditions.(2)IfafinancialinstrumentmustbesettledwithorcanbesettledwiththeCompany'sownequityinstrument,itisnecessarytoconsiderwhethertheCompany'sownequityinstrumentusedtosettletheinstrumentisusedasasubstituteforcashorotherfinancialassets,ortoenabletheholderoftheinstrumenttoenjoytheresidualequityintheassetsoftheissuerafterdeductingallliabilities.Ifitbelongstotheformercondition,theinstrumentisthefinancialliabilityoftheissuer;ifitbelongtothelattercondition,theinstrumentistheequityinstrumentoftheissuer.Insomecases,afinancialinstrumentcontractrequirestheCompanytouseoruseitsownequityinstrumenttosettlethefinancialinstrument,inwhichtheamountofcontractualrightsorcontractualobligationsisequaltothenumberofitsownequityinstrumentsavailableortobedeliveredmultipliedbyitsfairvalueatthetimeofsettlement,regardlessofwhethertheamountofcontractualrightsorobligationsisfixed,whetheritisentirelyorpartiallybasedonchangesinvariablesotherthanthemarketpriceoftheCompany'sownequityinstruments,thecontractshallbeclassifiedasafinancialliability.Inclassifyingfinancialinstruments(ortheircomponents)intheconsolidatedstatement,theCompanyhastakenintoaccountalltermsandconditionsreachedbetweentheCompanymembersandtheholdersoffinancialinstruments.IftheCompanyasawholeundertakestheobligationtodelivercash,otherfinancialassetsorsettleaccountsinotherwaysthatcausetheinstrumenttobecomeafinancialliabilityduetotheinstrument,theinstrumentshallbeclassifiedasafinancialliability.Iffinancialinstrumentsortheircomponentsarefinancialliabilities,theCompanywillincludeinterest,dividends(ordividends),gainsorlosses,andgainsorlossesarisingfromredemptionorrefinancing,etc.inthecurrentprofitsandlosses.Iffinancialinstrumentsortheircomponentsareequityinstruments,whentheyareissued(includingrefinancing),repurchased,soldorcancelled,theCompanywilltreatthemaschangesinequityandwillnotrecognizechangesinthefairvalueofequityinstruments.
11.ImpairmentofFinancialAssetsTheCompanyneedstoconfirmthatthefinancialassetssubjecttotheimpairmentlossarethefinancialassetsmeasuredbasedontheamortizedcost,thedebtinstrumentinvestmentmeasuredbasedonthefairvaluewithitsvariationsincludedintoothercomprehensiveincomesandtheleaseoutlayreceivable,mainlyincludingnotesreceivable,accountreceivable,otherreceivables,investmentoncreditor’srights,otherinvestmentsoncreditor’srightsandlong-termreceivablesetc.Besides,inrespectofthecontractassetsandpartialfinancialguaranteecontract,correspondingimpairmentprovisionsshallbecalculatedandwithdrawnandcorrespondingcreditimpairmentlossesrecognizedaccordingtovariousaccountingpoliciesmentionedinthispart.
(1)MethodsfortheRecognitionofImpairmentProvisionsForallmentioneditemsabove,theCompanyshallcalculateandwithdrawcorrespondingimpairmentprovisionsandrecognizecorrespondingcreditimpairmentlossesaccordingtoapplicableexpectedcreditlossmeasurementmethods(generalmethodsorsimplifiedmethods)withtheexpectedcreditlossasthebasis.Creditlossreferstothedifferencebetweenallreceivablecontractcashflowsandallexpectedcash
flowsthatarediscountedtothepresentvaluebasedontheoriginalactualinterestrate--thepresentvalueofallcashshortfall.However,forthepurchasedororiginalfinancialassetssubjecttothecreditimpairment,theCompanyshallrealizethediscountingbasedontheactualinterestratesubjecttothecreditadjustment.Generalmethodsappliedtomeasuretheexpectedcreditlosscanbedescribedas:theCompanyshallevaluatewhetherthecreditriskofthefinancialassets(includingthecontractassetsandotherapplicableitems;thesamebelow)increasesremarkablyaftertheinitialrecognitiononthebalancesheetday;ifthecreditriskincreasesremarkablyaftertheinitialrecognition,theCompanyshallmeasuretheprovisionforlossbasedonthespecificexpectedcreditlossamountduringtheentireperiodofexistence;ifnot,theCompanyshallmeasuretheprovisionforlossbasedonthespecificexpectedcreditlossamountinthefollowing12months.Whileevaluatingtheexpectedcreditloss,theCompanyshalltakeallreasonableandwell-foundedinformationintoconsideration,includingtheforward-lookinginformation.Forthefinancialinstrumentoflowercreditriskonthebalancesheetday,theCompanyshallassumethatitscreditriskdoesnotincreaseremarkablyaftertheinitialrecognition,andcorrespondingprovisionforlossshallbemeasuredaccordingtotheexpectedcreditlossinthefollowing12months.
(2)StandardsforJudgingWhethertheCreditRiskIncreasesRemarkablyaftertheInitialRecognitionIfanyfinancialassets’probabilityofdefaultwithintheexpectedperiodofexistencedeterminedonthebalancesheetdayisobviouslyhigherthanthatwithintheexpectedperiodofexistencedeterminedduringtheinitialrecognition,itshallindicatetheremarkableincreaseofthefinancialassets’creditrisk.Unlessitisunderspecialcircumstances,theCompanyshalladoptvariousvariationsinthedefaultriskinthefollowing12monthsasthereasonablebasisforestimatingcorrespondingvariationsinthedefaultriskwithintheentireperiodofexistenceanddeterminingwhetherthecreditriskincreasesremarkablyaftertheinitialrecognition.
(3)CombinedMethodforEvaluatingtheExpectedCreditRiskbasedonCorrespondingCombinationForthefinancialassetswithremarkablydifferentcreditrisk,theCompanyshallseparatelyevaluateitscreditrisk,includingthereceivablesfromrelatedparties,receivablesinvolvedinanydisputewiththeotherpartyoranylawsuitandarbitration,andreceivableswithobviousevidenceshowingthatthedebtorcannotfulfilltheduepaymentobligationetc.Exceptforthefinancialassetswhosecreditriskshallbeseparatelyevaluated,theCompanyshalldividethesefinancialassetsintodifferentcombinationsbasedonthespecificriskfeatures,onwhichbasis,correspondingcreditriskscanbeevaluated.
(4)AccountingTreatmentMethodsAppliedtotheImpairmentofFinancialAssetsAttheendoftheperiod,theCompanyshallcalculatetheexpectedcreditlossesofvariousfinancialassets.Iftheexpectedcreditlossishigherthanthecarryingamountofitscurrentimpairmentprovision,thedifferenceshallberecognizedastheimpairmentloss;iflower,thedifferenceshallberecognizedasthegainfromtheimpairment.
(5)MethodsforDeterminingtheCreditLossofVariousFinancialAssets
①NotesReceivablesFornotesreceivable,theCompanyshallmeasuretheprovisionforlossbasedonthespecificexpectedcreditlossduringtheentireperiodofexistence.Accordingtothecreditriskcharacteristicsthereof,exceptthosewithseparateevaluationofcreditrisk,notesreceivablecanbedividedintodifferentcombinations:
| Item | Basis |
| BankAcceptance | TheAcceptershallbethebankwithhighcreditlevelandlowrisks |
| TradeAcceptance | Classifiedbycreditriskofacceptors(thesameasaccountsreceivable) |
②AccountReceivableandContractAssetsForaccountreceivableandcontractassetsexcludingsignificantfinancingcomposition,theCompanyshallmeasuretheprovisionforlossaccordingtothespecificexpectedcreditlossamountwithintheentireperiodofexistence.Foraccountreceivable,contractassetsandleasepaymentreceivableincludingsignificantfinancingcomposition,theCompanyshallalwaysmeasuretheprovisionforlossaccordingtothespecificexpectedcreditlossamountwithintheperiodofexistence.Excepttheaccountreceivableandcontractassetswhosecreditrisksshallbeseparatelyevaluated,theCompanyshalldividethemintodifferentcombinationsbasedonthespecificcreditrisks:
| Item | Basis |
| AgingCombination | Thisportfolioisaccountsreceivablewithagingasthecreditriskfeature. |
| ProjectFundsCombination | Thisportfolioistheproject-relatedreceivables. |
| Relatedpartycombination | Theaccountsreceivablewithinthescopeofconsolidation |
③OtherReceivablesBydeterminingwhetherthecreditriskofotherreceivablesincreasesremarkablyaftertheinitialrecognition,theCompanyshallmeasuretheimpairmentlossbasedonthespecificexpectedcreditlossinthefollowing12monthsorduringtheentireperiodofexistence.Exceptotherreceivableswhosecreditrisksshallbeseparatelyevaluated,theCompanyshalldividethemintodifferentcombinationsbasedonthespecificcreditriskfeatures:
| Item | Basis |
| AgingCombination | Thisportfolioisaccountsreceivablewithagingasthecreditriskfeature. |
| LowRiskCombination | Thiscombinationshallregardotherreceivablesofextremelylowrisk(includingtherevolvingfund,thecashdepositandtheguaranteedeposit)asthecreditriskfeature. |
| Relatedpartycombination | Otherreceivableswithinthescopeofconsolidation. |
④Long-termReceivables(excepttheaccountreceivableandtheleasepaymentreceivableincludingthesignificantfinancingcomposition)Bydeterminingwhetherthecreditriskoflong-termaccountreceivablesincreasesremarkablyaftertheinitialrecognition,theCompanyshallmeasuretheimpairmentlossbasedonthespecificexpectedcreditlossinthefollowing12monthsorduringtheentireperiodofexistence.Exceptlong-termaccountreceivableswhosecreditrisksshallbeseparatelyevaluated,theCompanyshalldividethemintodifferentcombinationsbasedonthespecificcreditriskfeatures:
| Item | Basis |
| FinancingLeaseCombination | Regardingthelong-termreceivablesrelatedto |
| thefinancingleaseasthecreditriskcharacteristics | |
| FranchiseCombination | Regardingthelong-termreceivablesrelatedtothePPPProjectasthecreditriskcharacteristics |
12.Inventory
(1)ClassificationTheCompany’sinventoriesmainlyincluderawmaterials,goodsinprocess;merchandiseonhand,goodsdelivered,circulatingmaterials,consignedprocessingmaterialsandpropertyinventories(developmentproduct,anddevelopmentcost),andfinishedbutunsettledassetsofconstructioncontract.
①Developmentproductreferstothefinishedandheld-for-saleproperty.
②Developmentcostsreferstotheunfinishedpropertywiththedevelopmentpurposeforsale.
③Thefinishedbutunsettledassetsofconstructioncontractreferstotheexcessamountofthesumofaccumulativelyincurredcostsandrecognizedgrossmargin(loss)ofcontractinprocessoverthesettledamount.
(2)Pricingmethodforoutgoinginventories?PricingmethodofcommoninventoriesTheinventoriesshallbemeasuredinlightoftheircostwhenobtained.Thecostofinventoryconsistsofpurchasecosts,processingcostsandothercosts.Inventoryisaccountedbyweightaveragemethoduponreceivingandgiving.Formerchandiseonhandshallbeaccountedbyplannedcost,ifthedifferencebetweenplannedcostofandactualcostofrawmaterialsisaccountedthroughthecostvarianceitem,andtheplannedcostisadjustedtotheactualcostaccordingtothecostdifferencewhichthecarryoverandgiven-outinventoryshouldshoulderintheperiod.?PricingmethodofpropertyinventoriesThepropertyinventoriesareinitiallymeasuredatthecosts,andinventoriesmainlyincludematerialsinstock,developmentproductinprocess(developmentcosts),finisheddevelopmentproduct,anddevelopmentproductintendedtosellbutrenttemporarily,andetc.Thecostsofthedevelopmentproductincludethelandpremium,expendituresforsupportinginfrastructures,expendituresforconstructionandinstallationprojects,theborrowingcostsbeforethecompletionofthedevelopedprojectandotherexpensesoccurredduringthedevelopmentprocess.Whentheinventoriesaredelivered,itsactualcostsshallberecognizedbyweightedaveragemethod.?PricingmethodofconstructioncontractTheconstructioncontractsshallbemeasuredatactualcost,includingalldirectandindirectcostsrelatedtotheexecutionofthecontractfromthetimesigningthecontracttocompletingthecontract.Theexpensessuchastravelexpensesandbiddingfeesincurredforthepurposeofsigningthecontract,whichcanbeseparatelyandreliablymeasuredandthecontractislikelytobeconcluded,areincludedinthecontractcostwhenthecontractisobtained;iftheaboveconditionsarenotmet,theyareincludedinthecurrentprofitandloss.Theaccumulatedcostsincurredinthecontractinprogress,theaccumulatedrecognizedgrossprofit(loss)andthesettledpricearestatedinthebalancesheetasnetoffset.Thepartofthesumoftheaccumulatedcostsincurredinthecontractinprogressandtheaccumulatedrecognizedgrossprofit(loss)thatexceedsthesettledpriceisstatedastheinventory;thepartofthesettlementcostsofthecontractinprogressthatexceedsthesumoftheaccumulatedcostsincurredandtheaccumulatedrecognizedgrossprofit(loss)arestatedasaccountcollectedinadvance.
(3)RecognitionbasisofnetrealizablevalueandwithdrawalmethodofdepreciationreservesforinventoriesThenetrealizablevaluerefers,intheordinarycourseofbusiness,totheaccountafterdeductingtheestimatedcostofcompletion,estimatedsaleexpenseandrelevanttaxesfromtheestimatedsalepriceofinventories.Thenetrealizablevalueofinventoriesshallbefixedonthebasisofvalidevidenceaswellasunderconsiderationofpurposeofinventoriesandtheeffectofeventsafter
balance-sheet-date.Onthebalancesheetdate,theinventoriesshallbemeasuredaccordingtothecostorthenetrealizablevalue,whicheverislower.Ifthenetrealizablevalueislowerthanthecost,itshallwithdrawthedepreciationreservesforinventories,whichwaswithdrawninaccordancewiththebalancethatthecostofindividualinventoryitemexceedingthenetrealizablevalue.Theinventorieswithvariousnumbersandlowunitpriceshallbemadeprovisionsfordepreciationreservesofinventoriesaccordingtothecategoryofinventories.Forinventoriesthatareproducedandsoldinthesameregionwithsameorsimilarenduseorpurposes,andhardtobemeasuredseparatelyfromotheritems,itshallbemademergerprovisionsforfallingpriceofinventories.Afterwithdrawingthedepreciationreservesforinventories,ifthefactors,whichcauseanywrite-downoftheinventories,havedisappeared,causingthenetrealizablevalueofinventoriesishigherthanitscarryingamount;theamountofwrite-downshallbereversedfromtheoriginalamountofdepreciationreserveforinventories.Thereversedamountshallbeincludedintheprofitsandlossesofthecurrentperiod.
(4)Theperpetualinventorysystemismaintainedforstocksystem.
(5)Amortizationmethodofthelow-valueconsumptiongoodsandpackingarticlesThelow-valueconsumptiongoodsshouldbeamortizedbyonetimeamortizationwhenacquiringandthepackingarticlesareamortizedbyonetimeamortizationwhenacquiring.
13.Long-termEquityInvestments
Someofthelong-termequityinvestmentsreferredtobytheCompanyaremainlyforsubsidiaries.Theyrefertothelong-termequityinvestmentsandjointventuresthattheCompanyhascontrol,jointcontrolorsignificantinfluenceovertheinvested,affiliatedenterprises.Forlong-termequityinvestmentsthatthecompanydoesnothavecontrol,jointcontrolorsignificantinfluenceontheinvestedunits,theyareaccountedforasavailable-for-salefinancialassetsorfinancialassetsmeasuredatfairvalueandwhosechangesareincludedintheprofitsandlossesofthecurrentperiodfromJanuary1,2019.iftheyarenon-tradable,thecompanymaychoosetodesignatethemasfinancialassetsmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincomeduringinitialrecognition.pleaserefertonotes4and10"financialassetsandfinancialliabilities"foraccountingpolicies.Jointcontrolreferstothecommoncontrolofthecompanyoveranarrangementaccordingtorelevantagreements,andtherelevantactivitiesofthearrangementcanonlybedecidedaftertheparticipantssharingthecontrolrightshaveagreedunanimously.Significantinfluencereferstothefactthatthecompanyhasthepowertoparticipateinthedecision-makingofthefinancialandoperatingpoliciesoftheinvestedentity,butcannotcontrolorjointlycontroltheformulationofthesepolicieswithotherparties.（
）DeterminationofinvestmentcostForthelong-termequityinvestmentobtainedfromthemergerofenterprisesunderthesamecontrol,theinitialinvestmentcostofthelong-termequityinvestmentshallbebasedontheshareofthebookvalueoftheshareholders'equityofthemergedpartyintheconsolidatedfinancialstatementsofthefinalcontrollingpartyonthemergerdate.Thedifferencebetweentheinitialinvestmentcostoflong-termequityinvestmentandthecashpaid,thenon-cashassetstransferredandthebookvalueofthedebtsundertaken,andtheadjustmentofcapitalreserve;Ifthecapitalreserveisinsufficienttooffset,theretainedearningsshallbeadjusted.Ifequitysecuritiesareissuedasmergerconsideration,thecapitalreserveshallbeadjustedonthemergerdateaccordingtotheshareofthebookvalueofthemergedparty'sowner'sequityinthefinalcontrollingparty'sconsolidatedfinancialstatementsastheinitialinvestmentcostofthelong-termequityinvestment,andaccordingtothetotalnominalvalueoftheissuedsharesasequity,andthedifferencebetweentheinitialinvestmentcostofthelong-termequityinvestmentandthetotalnominalvalueoftheissuedshares.Ifthecapitalreserveisinsufficienttooffset,theretainedearningsshallbeadjusted.Forthelong-termequityinvestmentobtainedfromthemergerofenterprisesnotunderthesamecontrol,theinitialinvestmentcostofthelong-termequityinvestmentshallbetakenasthemerger
costonthepurchasedate.Themergercostincludesthesumoftheassetspaidbythepurchaser,theliabilitiesincurredorassumed,andthefairvalueoftheequitysecuritiesissued.Intermediaryexpensessuchasauditing,legalservices,evaluationandconsultationandotherrelatedmanagementexpensesincurredbythemergingpartyorthepurchaserfortheenterprisemergershallbeincludedinthecurrentprofitsandlosseswhenincurred.Otherequityinvestmentsotherthanthelong-termequityinvestmentsformedbythemergerofenterprisesareinitiallymeasuredaccordingtothecost,whichisdeterminedaccordingtotheactualcashpurchasepricepaidbythecompany,thefairvalueofequitysecuritiesissuedbythecompany,thevalueagreedininvestmentcontractsoragreements,thefairvalueororiginalbookvalueofassetsexchangedinnon-monetaryassetexchangetransactions,andthefairvalueofthelong-termequityinvestmentsthemselves,dependingonthewaythelong-termequityinvestmentsareobtained.Expenses,taxesandothernecessaryexpensesdirectlyrelatedtoobtaininglong-termequityinvestmentarealsoincludedintheinvestmentcost.
(2)SubsequentMeasurementandProfitandLossRecognitionMethodsForlong-termequityinvestmentsthatarejointlycontrolledbytheinvestedunits(exceptthosethatconstitutejointoperators)orhavesignificantimpact,theequitymethodshallbeadoptedforaccounting.Inaddition,thecompany'sfinancialstatementsusethecostmethodtoaccountforlong-termequityinvestmentsthatcancontroltheinvestedunits.①long-termequityinvestmentaccountedforbycostmethodWhenthecostmethodisusedforaccounting,thelong-termequityinvestmentispricedaccordingtotheinitialinvestmentcost,andthecostofthelong-termequityinvestmentisadjustedbyaddingorrecoveringtheinvestment.Inadditiontotheactualpricepaidatthetimeofobtainingtheinvestmentorthedeclaredbutundistributedcashdividendsorprofitsincludedintheconsideration,thecurrentinvestmentincomeshallberecognizedaccordingtothecashdividendsorprofitsdeclaredanddistributedbytheinvestedentity.
②long-termequityinvestmentaccountedforbyequitymethodIftheinitialinvestmentcostofthelong-termequityinvestmentisgreaterthanthefairvalueshareoftheidentifiablenetassetsoftheinvestedentitywhentheequitymethodisusedforaccounting,theinitialinvestmentcostofthelong-termequityinvestmentshallnotbeadjusted;Iftheinitialinvestmentcostislessthanthefairvalueshareoftheidentifiablenetassetsoftheinvestee,thedifferenceshallbeincludedinthecurrentprofitsandlosses,andthecostoflong-termequityinvestmentshallbeadjustedatthesametime.Whentheequitymethodisusedforaccounting,theinvestmentincomeandothercomprehensiveincomeshallberecognizedrespectivelyaccordingtotheshareofthenetprofitandlossandothercomprehensiveincomerealizedbytheinvestedentitythatshouldbeenjoyedorshared,andthebookvalueoflong-termequityinvestmentshallbeadjustedatthesametime.Thebookvalueoflong-termequityinvestmentshallbereducedcorrespondinglyaccordingtotheportionofprofitsorcashdividendsdeclaredanddistributedbytheinvestedentity.Thebookvalueoflong-termequityinvestmentshallbeadjustedandincludedinthecapitalreserveforotherchangesintheowner'sequityoftheinvestedentityotherthannetprofitandloss,othercomprehensiveincomeandprofitdistribution.Whenconfirmingtheshareofthenetprofitandlossoftheinvestee,thenetprofitoftheinvesteeshallbeconfirmedafteradjustmentbasedonthefairvalueoftheidentifiableassetsoftheinvesteeatthetimeofobtainingtheinvestment.IftheaccountingpoliciesandaccountingperiodsadoptedbytheinvestedentityareinconsistentwiththeCompany,thefinancialstatementsoftheinvestedentityshallbeadjustedinaccordancewiththeCompany'saccountingpoliciesandaccountingperiods,andtheinvestmentincomeandothercomprehensiveincomeshallberecognizedaccordingly.FortransactionsbetweentheCompany,associatedenterprisesandjointventures,iftheassetsinvestedorsolddonotconstitutebusiness,theunrealizedgainsandlossesoninternaltransactionsshallbeoffsetbytheportionattributabletotheCompanyaccordingtotheproportionenjoyed,andtheinvestmentgainsandlossesshallberecognizedonthisbasis.However,theunrealizedinternaltransactionlossesbetweentheCompanyandtheinvesteeshallnotbeoffsetiftheyareimpairmentlossesofthetransferredassets.
Whenthenetlossoftheinvesteeisconfirmedtobeshared,thebookvalueofthelong-termequityinvestmentandotherlong-termintereststhatsubstantiallyconstitutethenetinvestmentoftheinvesteeshallbereducedtozero.Inaddition,ifthecompanyhastheobligationtobearadditionallossestotheinvestee,theestimatedliabilitiesshallberecognizedaccordingtotheestimatedobligationsandincludedinthecurrentinvestmentlosses.Iftheinvestedentityrealizesnetprofitinthefollowingperiod,thecompanywillresumetherecognitionoftheprofitsharingamountaftertheprofitsharingamountmakesupfortheunrecognizedlosssharingamount.
③AcquisitionofminoritysharesInthepreparationofconsolidatedfinancialstatements,ifthecapitalreserve(equitypremium)isadjustedduetothedifferencebetweenthelong-termequityinvestmentaddedbythepurchaseofminorityequityandthenetassetsharethatthesubsidiarycompanyisentitledtocontinuouslycalculatefromthedateofpurchase(orthedateofconsolidation)accordingtotheaddedshareholdingratio,andthecapitalreserve(equitypremium)isinsufficienttooffset,theretainedearningsshallbeadjusted.④disposaloflong-termequityinvestmentIntheconsolidatedfinancialstatements,theparentcompanypartiallydisposesofthelong-termequityinvestmentinthesubsidiarycompanywithoutlosingcontrol.Thedifferencebetweenthedisposalpriceandthenetassetsofthesubsidiarycompanycorrespondingtothedisposalofthelong-termequityinvestmentisincludedintheshareholders'equity.Iftheparentcompanypartiallydisposesofthelong-termequityinvestmentinthesubsidiarycompany,resultinginthelossofcontroloverthesubsidiarycompany,itshallbehandledaccordingtotherelevantaccountingpoliciesmentionedinnotes4and6"methodsforpreparingconsolidatedfinancialstatements".Forthedisposaloflong-termequityinvestmentunderothercircumstances,thedifferencebetweenthebookvalueofthedisposedequityandtheactualpurchasepriceshallbeincludedinthecurrentprofitsandlosses.Forlong-termequityinvestmentsthatareaccountedforbytheequitymethodandtheremainingequityafterdisposalarestillaccountedforbytheequitymethod,othercomprehensiveincomeoriginallyincludedinshareholders'equityshallbeaccountedforonthesamebasisasthedirectdisposalofrelevantassetsorliabilitiesbytheinvestedentityaccordingtothecorrespondingproportion.Owners'equityrecognizedduetochangesinowners'equityotherthannetprofitandloss,othercomprehensiveincomeandprofitdistributionoftheinvesteeshallbetransferredtothecurrentprofitandlossinproportion.Forlong-termequityinvestmentsthatareaccountedforbythecostmethodandtheremainingequityisstillaccountedforbythecostmethodafterdisposal,othercomprehensiveincomerecognizedbytheequitymethodaccountingorfinancialinstrumentrecognitionandmeasurementstandardsaccountingbeforeobtainingcontrolovertheinvestedentityshallbeaccountedforonthesamebasisasthedirectdisposalofrelatedassetsorliabilitiesbytheinvestedentity,andshallbecarriedforwardtothecurrentprofitsandlossesinproportion.Changesinotherowner'sequityotherthannetprofitandloss,othercomprehensiveincomeandprofitdistributioninthenetassetsoftheinvestedentityrecognizedbytheequitymethodarecarriedforwardtothecurrentprofitandlossinproportion.
14.InvestmentPropertyTheterm“investmentproperty”referstotherealestateheldforgeneratingrentand/orcapitalappreciation.InvestmentpropertyoftheCompanyincludetherighttouseanylandwhichhasalreadybeenrented;therighttouseanylandwhichisheldandpreparedfortransferafterappreciation;andtherighttouseanybuildingwhichhasalreadybeenrented.Theinitialmeasurementoftheinvestmentpropertyshallbemadeatitscost.SubsequentexpendituresincurredforaninvestmentpropertyisincludedinthecostoftheinvestmentpropertywhenitisprobablethateconomicbenefitsassociatedwiththeinvestmentpropertywillflowtotheCompanyandthecostcanbereliablymeasured,otherwisetheexpenditureisrecognizedinprofitorlossintheperiodinwhichtheyareincurred.TheCompanyshallmakeafollow-upmeasurementtotheinvestmentpropertybyemployingthecostpatternonthedateofthebalancesheet.Anaccrualdepreciationoramortizationshallbemadefortheinvestmentpropertyinthelightoftheaccountingpoliciesoftheuserightofbuildingsor
lands.Fordetailsofimpairmenttestmethodandwithdrawalmethodofimpairmentprovisionofinvestmentproperty,pleaserefertoNoteIV.20.“Long-termassetsimpairment”.Whenowner-occupiedrealestateorinventoriesarechangedintoinvestmentpropertyorinvestmentpropertyischangedintoowner-occupiedrealestate,ofwhichbookvaluepriortothechangeshallbetheentryvalueafterthechange.Whenaninvestmentpropertyischangedtoanowner-occupiedrealestate,itwouldbetransferredtofixedassetsorintangibleassetsatthedateofsuchchange.Whenanowner-occupiedrealestateischangedtobeheldtoearnrentalorforcapitalappreciation,thefixedassetorintangibleassetistransferredtoinvestmentpropertyatthedateofsuchchange.Ifthefixedassetorintangibleassetischangedintoinvestmentpropertymeasuredbyadoptingthecostpattern,whosebookvaluepriortothechangeshallbetheentryvalueafterthechange;ifthefixedassetorintangibleassetischangedintoinvestmentpropertymeasuredbyadoptingthefairvaluepattern,whosefairvalueonthedateofsuchchangeshallbetheentryvalueafterthechangeAninvestmentpropertyisderecognizedondisposalorwhentheinvestmentpropertyispermanentlywithdrawnfromuseandnofutureeconomicbenefitsareexpectedfromitsdisposal.Theamountofproceedsonsale,transfer,retirementordamageofaninvestmentpropertylessitscarryingamountandrelatedtaxesandexpensesisrecognizedinprofitorlossintheperiodinwhichitisincurred.
15.FixedAssets
(1)ConditionsforrecognitionoffixedassetsFixedassetsrefertotangibleassetsheldfortheproductionofcommodities,theprovisionofservices,leasingoroperationandmanagement,whoseservicelifeexceedsoneaccountingyear.Fixedassetsarerecognizedonlywhentheeconomicbenefitsassociatedwiththemarelikelytoflowintothecompanyandtheircostscanbereliablymeasured.Fixedassetsareinitiallymeasuredatcost,takingintoaccounttheimpactofexpectedabandonmentcosts.
(2)DepreciationmethodsofeachfixedassetThefixedassetsshouldbewithdrawnanddepreciationbystraight-linedepreciationwithintheusefullifesincethenextmonthwhenthefixedassetsreachtheestimatedavailablestate.Theusefullife,estimatednetsalvageandtheyearlydiscountedrateofeachfixedassetareasfollows:
| Categoryoffixedassets | Method | Usefullife(Year) | Expectednetsalvagevalue(%) | Annualdeprecation(%) |
| Housingandbuilding | Straight-linedepreciation | 20-40 | 5-10.00 | 2.25-4.75 |
| Machineryequipment | Straight-linedepreciation | 5-10 | 5-10.00 | 9.00-19.00 |
| Electronicequipment | Straight-linedepreciation | 3-5 | 5-10.00 | 18.00-31.67 |
| Transportationvehicle | Straight-linedepreciation | 3-5 | 5-10.00 | 18.00-31.67 |
| Otherequipment | Straight-linedepreciation | 5 | 5-10.00 | 18.00-19.00 |
The“expectednetsalvagevalue”referstotheexpectedamountthattheCompanymayobtainfrom
thecurrentdisposalofafixedassetafterdeductingtheexpecteddisposalexpensesattheexpirationofitsexpectedusefullife.
(3)TestingmethodofimpairmentandwithdrawalmethodofprovisionforimpairmentonfixedassetsFordetailsofthetestingmethodofimpairmentandwithdrawmethodofimpairmentprovisionforimpairmentonfixedassets,pleaserefertoNoteIV.20“Long-termassetsimpairment”.
(4)Recognitionbasis,pricinganddepreciationmethodoffixedassetsbyfinanceleaseThe“financelease”shallrefertoaleasethathastransferredinsubstancealltherisksandrewardsrelatedtotheownershipofanasset.Itsownershipmayormaynoteventuallybetransferred.Thefixedassetsbyfinanceleaseshalladoptthesamedepreciationpolicyforself-ownedfixedassets.Ifitisreasonabletobecertainthatthelesseewillobtaintheownershipoftheleasedassetwhentheleasetermexpires,theleasedassetshallbefullydepreciatedoveritsusefullife.Ifitisnotreasonabletobecertainthatthelesseewillobtaintheownershipoftheleasedassetattheexpiryoftheleaseterm,theleasedassetshallbefullydepreciatedovertheshorteroneoftheleasetermoritsusefullife.
(5)OtherexplanationsThefollow-upexpensesrelatedtoafixedasset,iftheeconomicbenefitspertinenttothisfixedassetarelikelytoflowintotheenterpriseanditscostcanbereliablymeasured,shallberecordedintocostoffixedassetsandultimatelyrecognizedasthecarryingvalueofthereplacedpart;otherwise,theyshallbeincludedinthecurrentprofitsandlosses.Terminatetorecognizethefixedassetswhenthefixedassetsunderthedisposingstateorbeestimatedthatcouldnotoccuranyeconomybenefitsthroughusingordisposing.WhentheCompanysells,transfersordiscardsanyfixedassets,orwhenanyfixedassetsoftheCompanyisdamagedordestroyed,theCompanyshalldeductthecarryingvalueofthefixedassetsaswellastherelevanttaxesfromthedisposalincome,andincludetheamountinthecurrentprofitsandlosses.TheCompanyshallchecktheusefullife,expectednetsalvagevalueanddepreciationmethodofthefixedassetsattheendoftheyearatleast,ifthereisanychange,itshallberegardedasachangeoftheaccountingestimates.
16.ConstructioninProgressConstructioninprocessismeasuredatactualcost.Actualcostcomprisesconstructioncosts,borrowingcoststhatareeligibleforcapitalizationbeforethefixedassetsbeingreadyfortheirintendedusandotherrelevantcosts.Constructioninprocessistransferredtofixedassetswhentheassetsarereadyfortheirintendeduse.Fordetailsofthetestingmethodofimpairmentandwithdrawmethodofimpairmentprovisiononconstructioninprogress,pleaserefertoNoteIV.20“Long-termassetsimpairment”.
17.BorrowingCostsForincurredborrowingcosts,whichcanbedirectlyattributedtofixedassets,investmentrealestateandinventorythatneedmorethanoneyearofpurchasing,constructionorproductionactivitiestoreachthepresetusableorsellablestatus,shallbecapitalizedwhentheassetexpenditurehasoccurred,theborrowingcostshaveoccurred,andthepurchasing,constructionorproductionactivitiesnecessaryfortheassettoreachthepresetusableorsellablestatushavebegun;Whentheacquisition,constructionorproductionofassetsthatmeetthecapitalizationconditionsreachtheintendedusableorsellablestatus,capitalizationisstopped,andtheborrowingcostsincurredthereafterareincludedintheprofitsandlossesofthecurrentperiod.Ifthereisanabnormalinterruptionintheacquisition,constructionorproductionofassetsthatmeetthecapitalizationconditionsandtheinterruptionlastsformorethan3consecutivemonths,thecapitalizationofborrowingcostswillbesuspendeduntiltheacquisition,constructionorproductionofassetsstartsagain.Theto-be-capitalizedamountofinterestsshallbedeterminedinlightoftheactualinterestsincurredofthespeciallyborrowedloanatthepresentperiodminustheincomeofinterestsearnedontheunusedborrowingloansasadepositinthebankorasatemporaryinvestment;theenterpriseshallcalculateanddeterminetheto-be-capitalizedamountonthegeneralborrowingbymultiplyingthe
weightedaverageassetdisbursementofthepartoftheaccumulativeassetdisbursementsminusthegeneralborrowingbythecapitalizationrateofthegeneralborrowingused.Thecapitalizationrateshallbecalculatedanddeterminedinlightoftheweightedaverageinterestrateofthegeneralborrowing.Duringthecapitalizationperiod,theexchangedifferencesofforeigncurrencyspecialloansarefullycapitalized;theexchangedifferencesofforeigncurrencygeneralloansareincludedinthecurrentprofitandloss.
18.IntangibleAssets
(1)IntangibleassetsTheterm“intangibleasset”referstotheidentifiablenon-monetaryassetspossessedorcontrolledbyenterpriseswhichhavenophysicalshape.Theintangibleassetsshallbeinitiallymeasuredaccordingtoitscost.Thecostsrelatedwiththeintangibleassets,iftheeconomicbenefitsrelatedtointangibleassetsarelikelytoflowintotheenterpriseandthecostofintangibleassetscanbemeasuredreliably,shallberecordedintothecostsofintangibleassets;otherwise,itshallberecordedintocurrentprofitsandlossesupontheoccurrence.Theuserightoflandgainedisusuallymeasuredasintangibleassets.Fortheself-developedandconstructedfactoriesandotherconstructions,therelatedexpendituresonuserightoflandandconstructioncostsshallberespectivelymeasuredasintangibleassetsandfixedassets.Forthepurchasedhousesandbuildings,therelatedpaymentshallbedistributedintothepaymentforuserightoflandandthepaymentforbuildings,ifitisdifficulttobedistributed,thewholepaymentshallbetreatedasfixedassets.Forintangibleassetswithafiniteservicelife,fromthetimewhenitisavailableforuse,thecostafterdeductingthesumoftheexpectedsalvagevalueandtheaccumulatedimpairmentprovisionshallbeamortizedbystraightlinemethodduringtheservicelife.Whiletheintangibleassetswithoutcertainservicelifeshallnotbeamortized.Attheendofperiod,theCompanyshallchecktheservicelifeandamortizationmethodofintangibleassetswithfiniteservicelife,ifthereisanychange,itshallberegardedasachangeoftheaccountingestimates.Besides,theCompanyshallchecktheservicelifeofintangibleassetswithoutcertainservicelife,ifthereisanyevidenceshowingthattheperiodofintangibleassetstobringtheeconomicbenefitstotheenterprisecanbeprospected,itshallbeestimatedtheservicelifeandamortizedinaccordancewiththeamortizationpoliciesforintangibleassetswithfiniteservicelife.
(2)R&DexpensesTheexpendituresforinternalresearchanddevelopmentprojectsofanenterpriseshallbeclassifiedintoresearchexpendituresanddevelopmentexpenditures.Theresearchexpendituresshallberecordedintotheprofitorlossforthecurrentperiod.Thedevelopmentexpendituresshallbeconfirmedasintangibleassetswhentheysatisfythefollowingconditionssimultaneously,andshallberecordedintoprofitorlossforthecurrentperiodwhentheydon’tsatisfythefollowingconditions.
①Itisfeasibletechnicallytofinishintangibleassetsforuseorsale;②Itisintendedtofinishanduseorselltheintangibleassets;③Theusefulnessofmethodsforintangibleassetstogenerateeconomicbenefitsshallbeproved,includingbeingabletoprovethatthereisapotentialmarketfortheproductsmanufacturedbyapplyingtheintangibleassetsorthereisapotentialmarketfortheintangibleassetsitselfortheintangibleassetswillbeusedinternally;
④Itisabletofinishthedevelopmentoftheintangibleassets,andabletouseorselltheintangibleassets,withthesupportofsufficienttechnologies,financialresourcesandotherresources;
⑤Thedevelopmentexpendituresoftheintangibleassetscanbereliablymeasured.Asforexpensesthatcan’tbeidentifiedasresearchexpendituresordevelopmentexpenditures,theoccurredR&Dexpensesshallbeallincludedincurrentprofitsandlosses.
(3)Testingmethodofimpairmentandwithdrawmethodofimpairmentprovisionofintangibleassets
Fordetailsofthetestingmethodofimpairmentandwithdrawmethodofimpairmentprovisiononintangibleassets,seeNotesIV.20“Long-termassetsimpairment”.
19.Long-termDeferredExpensesLong-termdeferredexpensesrefertogeneralexpenseswiththeapportionedperiodoveroneyear(oneyearexcluded)thathaveoccurredbutattributabletothecurrentandfutureperiods.Long-termdeferredexpensesshallbeamortizedaveragelywithinbenefitperiod.
20.ImpairmentofLong-termAssetsFornon-currentfinancialAssetsoffixedAssets,projectsunderconstruction,intangibleAssetswithlimitedservicelife,investingrealestatewithcostmodel,long-termequityinvestmentofsubsidiaries,cooperativeenterprisesandjointventures,theCompanyshouldjudgewhetherdecreaseinvalueexistsonthedateofbalancesheet.Recoverableamountsshouldbetestedfordecreaseinvalueifitexists.OtherintangibleAssetsofreputationanduncertainservicelifeandothernon-accessibleintangibleassetsshouldbetestedfordecreaseinvaluenomatterwhetheritexists.Iftherecoverableamountislessthancarryingvalueinimpairmenttestresults,theprovisionforimpairmentofdifferencesshouldincludeinimpairmentloss.Recoverableamountswouldbethehigherofnetvalueofassetfairvaluedeductingdisposalchargesorpresentvalueofpredictedcashflow.Assetfairvalueshouldbedeterminedaccordingtonegotiatedsalespriceoffairtrade.Ifnosalesagreementexistsbutwithassetactivemarket,fairvalueshouldbedeterminedaccordingtotheBuyer’spriceoftheasset.Ifnosalesagreementorassetactivemarketexists,assetfairvaluecouldbeacquiredonthebasisofbestinformationavailable.Disposalexpensesincludelegalfees,taxes,cartageorotherdirectexpensesofmerchantableAssetsrelatedtoassetdisposal.PresentvalueofpredictedassetcashflowshouldbedeterminedbytheproperdiscountrateaccordingtoAssetsinserviceandpredictedcashflowoffinaldisposal.AssetdepreciationreservesshouldbecalculatedonthebasisofsingleAssets.IfitisdifficulttopredicttherecoverableamountsforsingleAssets,recoverableamountsshouldbedeterminedaccordingtothebelongingassetgroup.Assetgroupistheminimumassetcombinationproducingcashflowindependently.Inimpairmenttest,carryingvalueofthebusinessreputationinfinancialreportshouldbesharedtobeneficialassetgroupandassetgroupcombinationincollaborationofbusinessmerger.Itisshowninthetestthatifrecoverableamountsofsharedbusinessreputationassetgrouporassetgroupcombinationarelowerthanbookvalue,itshoulddeterminetheimpairmentloss.Impairmentlossamountshouldfirstlybedeductedandsharedtothecarryingvalueofbusinessreputationofassetgrouporassetgroupcombination,thendeductcarryingvalueofallassetsaccordingtoproportionsofothercarryingvalueofaboveassetsinassetgrouporassetgroupcombinationexceptbusinessreputation.Aftertheassetimpairmentlossisdetermined,recoverablevalueamountswouldnotbereturnedinfuture.
21.EmployeeCompensationEmployeecompensationoftheCompanymainlyincludesshort-termemployeecompensation,departurebenefits,demissionbenefitsandotherlong-termemployeecompensation.Ofwhich:
Short-termcompensationmainlyincludingsalary,bonus,allowancesandsubsidies,employeeservicesandbenefits,medicalinsurancepremiums,birthinsurancepremium,industrialinjuryinsurancepremium,housingfund,labourunionexpenditureandpersonneleducationfund,non-monetarybenefitsetc.Theshort-termcompensationactuallyhappenedduringtheaccountingperiodwhentheactivestaffofferingtheservicefortheCompanyshouldberecognizedasliabilitiesandisincludedinthecurrentgainsandlossesorrelevantassetscost.Ofwhichthenon-monetarybenefitsshouldbemeasuredaccordingtothefairvalue.Welfareafterdemissionmainlyincludessettingdrawingplan.Definedcontributionplansincludebasicendowmentinsurance,unemploymentinsuranceandannuity.Depositedamountsarechargedtorelevantassetcostsorcurrentprofitsandlossesduringtheperiodinwhichtheyareincurred.DefinedbenefitplanoftheCompanyisinternalearlyretirementplan.Accordingtoanticipated
accumulativewelfareunit,theCompanymakesestimatesbyunbiasedandconsistentactuarialassumptionforthedemographicvariablesandfinancialvariables,measurestheobligationsproducedindefinedbenefitplans,anddeterminesthevestingperiod.Onbalancesheetdate,theCompanywilllistallobligationsindefinedbenefitplansaspresentvalueandincludecurrentservicecostsintocurrentprofitsandlosses.Whenterminatinglabourrelationsbeforeexpirationofcontract,orlayoffswithcompensations,andtheCompanycannotterminatethelabourrelationsunilaterallyorreducethedemissionwelfare,remunerationandliabilitiesproducedfromthedemissionwelfareshouldbedeterminedandincludedincurrentprofitsandlosseswhendeterminingthecostsofdemissionwelfareandrecombination.However,demissionwelfarenotfullypaidwithin12monthsafterannualReportingPeriodshouldbehandledthesameasotherlong-termemployees’payrolls.Theinsideemployeeretirementplanistreatedbyadoptingthesameprinciplewiththeabovedismissionwelfare.TheCompanywouldrecordedthesalaryandthesocialsecurityinsurancefeespaidandsoonfromtheemployee’sserviceterminationdatetonormalretirementdateintocurrentprofitsandlosses(dismissionwelfare)undertheconditionthattheymeettherecognitionconditionsofestimatedliabilities.Theotherlong-termwelfarethattheCompanyofferstothestaffs,ifmetwiththesettingdrawingplan,shouldbeaccountingdisposedaccordingtothesettingdrawingplan,whiletherestshouldbedisposedaccordingtothesettingrevenueplan.
22.ProvisionsTheCompanyshouldrecognizetherelatedobligationasaprovisionforliabilitywhentheobligationmeetsthefollowingconditions:(1)Thatobligationisapresentobligationoftheenterprise;(2)Itisprobablethatanoutflowofeconomicbenefitsfromtheenterprisewillberequiredtosettletheobligation;(3)Areliableestimatecanbemadeoftheamountoftheobligation.Onthebalancesheetdate,anenterpriseshalltakeintofullconsiderationoftherisks,uncertainty,timevalueofmoney,andotherfactorspertinenttotheContingenciestomeasuretheprovisionsinaccordancewiththebestestimateofthenecessaryexpensesfortheperformanceofthecurrentobligation.Whenallorsomeoftheexpensesnecessaryfortheliquidationofanprovisionsofanenterpriseisexpectedtobecompensatedbyathirdparty,thecompensationshouldbeseparatelyrecognizedasanassetonlywhenitisvirtuallycertainthatthereimbursementwillbeobtained.Besides,theamountrecognizedforthereimbursementshouldnotexceedthecarryingvalueoftheestimatedliabilities.
23.RecognitionandMeasurementofrevenue
(1)RevenuefromsellinggoodsNorevenuefromsellinggoodsmayberecognizedunlessthefollowingconditionsaremetsimultaneously:thesignificantrisksandrewardsofownershipofthegoodshavebeentransferredtothebuyerbytheenterprise;theenterpriseretainsneithercontinuousmanagementrightthatusuallykeepsrelationwiththeownershipnoreffectivecontroloverthesoldgoods;therelevantamountofrevenuecanbemeasuredinareliableway;therelevanteconomicbenefitsmayflowintotheenterprise;andtherelevantcostsincurredortobeincurredcanbemeasuredinareliableway.Therecognitionofrevenuefromcommoditiesforthehomemarketwhenshippingthegoodsortransferringpropertyingoods;forgoodsexported,therevenueshallberecognizedoncethegoodsareclearedthroughcustomsanddeliveredtothecarrierdesignatedbythepurchaser;forgoodsdirectlytradedinoverseas,therevenueshallberecognizedwhencustomerspickupthegoodsorthegoodsaredeliveredtotheassignedplacebycustomers.
(2)ProvidinglabourservicesIftheCompanycanreliablyestimatetheoutcomeofatransactionconcerningthelabourservicesitprovides,itshallrecognizetherevenuefromprovidingservicesemployingthepercentage-of-completionmethodonthedateofthebalancesheet.Thecompletedproportionofatransactionconcerningtheprovidingoflabourservicesshallbedecidedbytheproportionofthelabourservicealreadyprovidedtothetotallabourservicetoprovide.
Theoutcomeofatransactionconcerningtheprovidingoflabourservicescanbemeasuredinareliableway,meansthatthefollowingconditionsshallbemetsimultaneously:
①Theamountofrevenuecanbemeasuredinareliableway;②Therelevanteconomicbenefitsarelikelytoflowintotheenterprise;③Thescheduleofcompletionunderthetransactioncanbeconfirmedinareliableway;and④Thecostsincurredortobeincurredinthetransactioncanbemeasuredinareliableway.Iftheoutcomeofatransactionconcerningtheprovidingoflabourservicescannotbemeasuredinareliableway,therevenuefromtheprovidingoflabourservicesshallberecognizedinaccordancewiththeamountofthecostoflabourservicesincurredandexpectedtobecompensated,andmakethecostoflabourservicesincurredasthecurrentexpenses.Ifitispredictedthatthecostoflabourservicesincurredcouldn’tbecompensated,thusnorevenueshallberecognized.WhereacontractoragreementsignedbetweenCompanyandotherenterprisesconcernssellinggoodsandprovidingoflabourservices,ifthepartofsaleofgoodsandthepartofprovidinglabourservicescanbedistinguishedfromeachotherandcanbemeasuredrespectively,thepartofsaleofgoodsandthepartofprovidinglabourservicesshallbetreatedrespectively.Ifthepartofsellinggoodsandthepartofprovidinglabourservicescannotbedistinguishedfromeachother,orifthepartofsaleofgoodsandthepartofprovidinglabourservicescanbedistinguishedfromeachotherbutcannotbemeasuredrespectively,bothpartsshallbeconductedassellinggoods.
(3)ConstructioncontractincomeUndercircumstanceofthattheoutcomeoftheconstructioncontractcanbereliablyestimated,thecontractincomeandcostsareconfirmedonthebalancesheetdateinaccordancewiththepercentageofcompletionmethod.Thecompletionofthecontractisdeterminedbytheproportionoftheincurredlaborcoststotheestimatedtotalcosts.Thattheresultoftheconstructioncontractcanbereliablyestimatedreferstothat:①thetotalincomeofthecontractcanbereliablymeasured;②theeconomicbenefitsrelatedtothecontractarelikelytoflowintotheenterprise;③Theactualcontractcostscanbeclearlydifferentiatedandreliablymeasured;④thecompletionofthecontractandthecostsneededtocompletethecontractcanbereliablydetermined.Iftheresultoftheconstructioncontractcannotbereliablyestimated,butthecontractcostcanberecovered,thecontractincomecanbeconfirmedaccordingtotheactualcontractcostthatcanberecovered,andthecontractcostisconfirmedasthecontractexpenseinthecurrentoccurringperiod;forthecontractcostthatcannotberecovered,itisimmediatelyconfirmedasthecontractcostbutnotthecontractincomewhenitoccurs.Iftheuncertaintiesthatmaketheresultsoftheconstructioncontractcannotbereliablyestimatedarenolongerinexistence,theincomeandexpensesrelatedtotheconstructioncontractaredeterminedaccordingtothepercentageofcompletionmethod.Iftheestimatedtotalcostofthecontractexceedsthetotalcontractincome,theestimatedlossisconfirmedasthecurrentexpense.Theaccumulatedcostsincurredinthecontractinprogress,theaccumulatedrecognizedgrossprofit(loss)andthesettledpricearestatedinthebalancesheetasnetoffset.Thepartofthesumoftheaccumulatedcostsincurredinthecontractinprogressandtheaccumulatedrecognizedgrossprofit(loss)thatexceedsthesettledpriceisstatedastheinventory;thepartofthesettlementcostsofthecontractinprogressthatexceedsthesumoftheaccumulatedcostsincurredandtheaccumulatedrecognizedgrossprofit(loss)arestatedasaccountcollectedinadvance.
(4)BusinessincomeofBOTandPPPTheCompanyparticipatesintheconstructionofpublicinfrastructurebymeansofBOTandPPP.Duringtheconstructionperiod,theCompanyrecognizestherelevantrevenueandexpensesfromprovidingservicesinaccordancewithASBENo.15-ConstructionContracts.Afterthecompletionofinfrastructure,theCompanyrecognizestherevenuefromrelatedtofollow-upservicesinaccordancewithASBENo.14-Revenue.Revenuefromconstructioncontractsismeasuredatthefairvalueofcollectedconsiderationorconsiderationreceivable(generallytheamountofconstructioncontracts),andfinancialassetsorintangibleassetsarerecognized,intherecognitionofrevenue,inthefollowingcircumstances:
①Thecontractstipulatesthatwithinacertainperiodafterthecompletionofinfrastructure,thecompanyundertakentheprojectmayunconditionallycollectmoneyorotherfinancialassetsofafixedamountfromthepartyawardingthecontract;or,wheretheservicesfeechargedbythecompanyundertakentheprojectislowerthanaspecifiedamount,andthepartyawardingthecontractisresponsibleforcompensatingtherelevantpricedifferencetothecompanyundertakentheprojectinaccordancewiththecontract,intherecognitionofrevenue,financialassetsarerecognizedandtreatedinaccordancewiththeprovisionsofASBENo.22-RecognitionandMeasurementofFinancialInstruments.
②ThecontractstipulatesthattheCompanyhastherighttocollectfeesfromthepartyreceivingserviceswithinacertainperiodoftimeafterthecompletionofrelevantinfrastructure.However,iftheamountoffeesisuncertain,thisrightdoesnotconstituteanunconditionalrighttocollectcash.TheCompanyundertakentheprojectshallrecognizeintangibleassetsintherecognitionofrevenue.Incasethatinterestonborrowingoccursintheconstructionprocess,itshallbetreatedinaccordancewiththeprovisionsofASBENo.17-BorrowingCosts.Incasethattheprojectcompanyfailstoprovideactualconstructionservicesandcontractstheinfrastructureconstructiontootherparties,therewillbenorecognitionofrevenuefromconstructionservices,andtheprojectpricepaidintheconstructionprocessisrecognizedasfinancialassetsorintangibleassetsinaccordancewiththecontract.
(5)InterestrevenueTheamountofinterestrevenueshouldbemeasuredandconfirmedinaccordancewiththelengthoftimeforwhichtheCompany’smonetaryfundisusedbyothersandtheagreedinterestrate.
(6)PropertyleasingrevenueFortherecognitionmethodofthepropertyleasingrevenue,pleaserefertoNotesIV.26.
(7)FactoringbusinessrevenueTakethepaid-infactoringpaymentasthefairvaluetocarryoutinitialmeasurement.Subsequentmeasurementshallbecarriedoutaspertheeffectiveinterestmethodaccordingtotheamortizedcost.Takethebalancebetweenthefairvalueinitiallyconfirmedandtransferredamountofaccountsreceivableorfacevalueofnotesreceivableastheinterestincomebyeffectiveinterestsmethodandamortizedcostsduringthefinancingperiodortherestcreditperiod;interestincomeshallberecognizedbystraight-linemethodifitisduewithin1year.Theprofitsandlossesfromterminationofrecognition,impairment,andamortizationshallbeincludedintothecurrentprofitsandlosses.
(8)FinanceleaseincomeAsafinanciallessor,theCompanyrecognizes,onthebeginningdateoftheleaseterm,thesumoftheminimumrentalreceivablesontheleasestartdateandtheinitialdirectcostsastheentryvalueoffinancialleasereceivable,andrecordstheunguaranteedresidentialvalue.Thedifferencebetweenthesumofminimumrentalreceivablesplustheunguaranteedresidentialvalueandthepresentvalueisrecognizedasunrealizedfinancingrevenue.Unrealizedfinancingrevenueismeasuredusingtherealinterestratemethodduringtheleasetermandrecognizedascurrentfinancingleaserevenue.Contingentrentsareincludedincurrentprofitsandlosseswhentheyactuallyoccur.
24.GovernmentGrants
(1)TypesofgovernmentgrantsGovernmentgrantsrefertomonetaryornon-monetaryassetsobtainedbythecompanyfromthegovernmentforfree(butexcludingthecapitalinvestedbythegovernmentastheowner),whicharemainlydividedintogovernmentgrantsrelatedtoassetsandgovernmentgrantsrelatedtoincome.Ifthegovernmentgrantsisamonetaryasset,itshallbemeasuredaccordingtotheamountreceivedorreceivable.Ifthegovernmentgrantsisanon-monetaryasset,itshallbemeasuredatitsfairvalue;ifitsfairvaluecannotbeobtainedreliably,itshallbemeasuredatitsnominalamount.Governmentgrantsmeasuredinnominalamountsaredirectlyincludedinthecurrentprofitandloss.
(2)AccountingtreatmentmethodofgovernmentgrantsThegovernmentgrantsrelatedtoassetsrefertothegovernmentgrantsobtainedbythecompanyfor
thepurchaseorconstructionorotherformsoflong-termassets.Thecompany'sasset-relatedgovernmentgrants,offsettingthebookvalueofrelatedassetsorrecognizedasdeferredincome,andrecognizedasdeferredincome,shallbeincludedinthecurrentprofitandlossininstallmentsaccordingtoareasonableandsystematicmethodwithintheusefullifeoftherelevantassets;governmentgrantsrelatedtoincomerefertogovernmentgrantsobtainedbythecompanyinadditiontogovernmentgrantsrelatedtoassets.Thecompany'sgovernmentgrantsrelatedtoincomeusedtocompensatethecompany'srelatedcostsorlossesinsubsequentperiodsarerecognizedasdeferredincome,andduringtheperiodwhentherelatedcostsorlossesarerecognized,theyareincludedinthecurrentprofitorlossoroffsetrelatedCostexpenseorloss;ifitisusedtocompensatetherelevantcostexpenseorlossincurredbythecompany,itisdirectlyincludedinthecurrentprofitandlossoroffsettherelevantcostexpenseorloss.
(3)Confirmationtimingofgovernmentgrantsgovernmentgrantsmeasuredinaccordancewiththeamountreceivableareconfirmedwhenthereissolidevidenceattheendoftheperiodthattheycanmeettherelevantconditionsstipulatedbythefinancialsupportpolicyanditisexpectedthatthefinancialsupportfundscanbereceived.Exceptforgovernmentgrantsmeasuredinaccordancewiththereceivableamount,thecompanywillrecognizethesubsidieswhentheyactuallyreceivethesubsidies.
25.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)IncometaxofthecurrentperiodOnthebalancesheetdate,forthecurrentincometaxliabilities(orassets)ofthecurrentperiodaswellasthepartformedduringthepreviousperiod,shouldbemeasuredbytheincometaxoftheestimatedpayable(returnable)amountwhichbecalculatedaccordingtotheregulationsofthetaxlaw.
(2)DeferredincometaxassetsanddeferredincometaxliabilitiesThedifferencebetweenthecarryingvalueofcertainassetsandliabilitiesandtheirtaxassessmentbasis,aswellasthetemporarydifferenceoccursfromthedifferencebetweenthecarryingvalueoftheitemswhichnotberecognizedasassetsandliabilitiesbutcouldconfirmtheirtaxassessmentbasisaccordingtotheregulationsofthetaxlaw,thedeferredincometaxassetsandthedeferredincometaxliabilitiesshouldberecognizedbyadoptingliabilitieslawofthebalancesheet.Nodeferredtaxliabilityisrecognizedforatemporarydifferencearisingfromtheinitialrecognitionofgoodwill,theinitialrecognitionofassetsorliabilitiesduetoatransactionotherthanabusinesscombination,whichaffectsneitheraccountingprofitnortaxableprofit(ordeductibleloss).Besides,nodeferredtaxassetsisrecognizedforthetaxabletemporarydifferencesrelatedtotheinvestmentsofsubsidiarycompanies,associatedenterprisesandjointenterprises,andtheinvestingenterprisecancontrolthetimeofthereverseoftemporarydifferencesaswellasthetemporarydifferencesareunlikelytobereversedintheexceptedfuture.Otherwise,theCompanyshouldrecognizethedeferredincometaxliabilitiesarisingfromothertaxabletemporarydifference.Nodeferredtaxableassetsshouldberecognizedforthedeductibletemporarydifferenceofinitialrecognitionofassetsandliabilitiesarisingfromthetransactionwhichisnotbusinesscombination,theaccountingprofitswillnotbeaffected,norwillthetaxableamountordeductiblelossbeaffectedatthetimeoftransaction.Besides,nodeferredtaxableassetsshouldberecognizedforthedeductibletemporarydifferencerelatedtotheinvestmentsofthesubsidiarycompanies,associatedenterprisesandjointenterprises,whicharenotlikelytobereversedintheexpectedfutureorisnotlikelytoacquireanyamountoftaxableincometaxthatmaybeusedformakingupsuchdeductibletemporarydifferences.Otherwise,theCompanyshallrecognizethedeferredincometaxassetsarisingfromadeductibletemporarydifferencebasingontheextentoftheamountofthetaxableincomethatislikelytobeacquiredtomakeupsuchdeductibletemporarydifferencesForanydeductiblelossortaxdeductionthatcanbecarriedforwardtothenextyear,thecorrespondingdeferredincometaxassetshallbedeterminedtotheextentthattheamountoffuturetaxableincometobeoffsetbythedeductiblelossortaxdeductiontobelikelyobtained.Onthebalancesheetdate,thedeferredincometaxassetsandthedeferredincometaxliabilitiesshallbemeasuredatthetaxrateapplicabletotheperiodduringwhichtheassetsareexpectedtobe
recoveredortheliabilitiesareexpectedtobesettled.Thecarryingvalueofdeferredincometaxassetsshallbereviewedateachbalancesheetdate.Ifitisunlikelytoobtainsufficienttaxableincometooffsetagainstthebenefitofthedeferredincometaxasset,thecarryingvalueofthedeferredincometaxassetsshallbewrittendown.Anysuchwrite-downshouldbesubsequentlyreversedwhereitbecomesprobablethatsufficienttaxableincomewillbeavailable.
(3)IncometaxexpensesIncometaxexpensesincludecurrentincometaxanddeferredincometax.Therestcurrentincometaxandthedeferredincometaxexpensesorrevenueshouldbeincludedintocurrentgainsandlossesexceptforthecurrentincometaxandthedeferredincometaxrelatedtothetransactionandeventsthatbeconfirmedasothercomprehensiveincomeorbedirectlyincludedintheshareholders’equitywhichshouldbeincludedinothercomprehensiveincomeorshareholders’equityaswellasthecarryingvalueforadjustingthegoodwillofthedeferredincometaxoccursfromthebusinesscombination.
(4)OffsetofincometaxThecurrentincometaxassetsandliabilitiesoftheCompanyshouldbelistedbythewritten-offnetamountwhichintendtoexecutesthenetamountsettlementaswellastheassetsacquiringandliabilitiesliquidationatthesametimewhileownsthelegalrightsofsettlingthenetamount.ThedeferredincometaxassetsandliabilitiesoftheCompanyshouldbelistedaswritten-offnetamountwhenhavingthelegalrightsofsettlingthecurrentincometaxassetsandliabilitiesbynetamountandthedeferredincometaxandliabilitiesisrelevanttotheincometaxwhichbecollectedfromthesametaxpayingbodiesbythesametaxcollectionandadministrationdepartmentorisrelevanttothedifferenttaxpayingbodiesbutduringeachperiodwhichthereissignificantreverseofthedeferredincomeassetsandliabilitiesinthefutureandamongwhichtheinvolvedtaxpayingbodiesintendtosettlethecurrentincometaxandliabilitiesbynetamountorareatthesametimeacquiretheassetaswellasliquidatetheliabilities.
26.LeasingFinancingleasingvirtuallytransferredthewholerisksandleasingofthecompensationrelatedtotheassetsownershipandtheirownershipmayeventuallybetransferredormaybenot.Otherleasingexceptforthefinancingleasingisoperatingleasing.
(1)BusinessofoperatingleasesrecordedbytheCompanyasthelesseeTherentexpensesfromoperatingleasesshallberecordedbythelesseeintherelevantassetcostsortheprofitsandlossesofthecurrentperiodbyusingthestraight-linemethodovereachperiodoftheleaseterm.Theinitialdirectcostsshallberecognizedastheprofitsandlossesofthecurrentperiod.Thecontingentrentsshallberecordedintotheprofitsandlossesofthecurrentperiodinwhichtheyactuallyarise.
(2)BusinessofoperatingleasesrecordedbytheCompanyasthelessorTherentincomesfromoperatingleasesshallberecognizedastheprofitsandlossesofthecurrentperiodbyusingthestraight-linemethodovereachperiodoftheleaseterm.Theinitialdirectcostsofgreatamountshallbecapitalizedwhenincurred,andberecordedintocurrentprofitsandlossesinaccordancewiththesamebasisforrecognitionofrentincomesoverthewholeleaseterm.Theinitialdirectcostsofsmallamountshallberecordedintocurrentprofitsandlosseswhenincurred.Thecontingentrentsshallberecordedintotheprofitsandlossesofthecurrentperiodinwhichtheyactuallyarise.
(3)BusinessoffinanceleasesrecordedbytheCompanyasthelesseeOntheleasebeginningdate,theCompanyshallrecordtheloweroneofthefairvalueoftheleasedassetandthepresentvalueoftheminimumleasepaymentsontheleasebeginningdateastheenteringvalueinanaccount,recognizetheamountoftheminimumleasepaymentsastheenteringvalueinanaccountoflong-termaccountpayable,andtreatthebalancebetweentherecordedamountoftheleasedassetandthelong-termaccountpayableasunrecognizedfinancingcharges.Besides,theinitialdirectcostsdirectlyattributabletotheleaseditemincurredduringtheprocessofleasenegotiatingandsigningtheleasingagreementshallberecordedintheassetvalueofthecurrent
period.Thebalancethroughdeductingunrecognizedfinancingchargesfromtheminimumleasepaymentsshallberespectivelystatedinlong-termliabilitiesandlong-termliabilitiesduewithin1year.Unrecognizedfinancingchargesshallbeadoptedbytheeffectiveinterestratemethodintheleaseterm,soastocalculateandrecognizecurrentfinancingcharges.Thecontingentrentsshallberecordedintotheprofitsandlossesofthecurrentperiodinwhichtheyactuallyarise.
(4)BusinessoffinanceleasesrecordedbytheCompanyasthelessorOnthebeginningdateoftheleaseterm,theCompanyshallrecognizethesumoftheminimumleasereceiptsontheleasebeginningdateandtheinitialdirectcostsastheenteringvalueinanaccountofthefinancingleasevaluesreceivable,andrecordtheunguaranteedresidualvalueatthesametime.Thebalancebetweenthesumoftheminimumleasereceipts,theinitialdirectcostsandtheunguaranteedresidualvalueandthesumoftheirpresentvaluesshallberecognizedasunrealizedfinancingincome.Thebalancethroughdeductingunrealizedfinancingincomesfromthefinanceleaseaccountsreceivableshallberespectivelystatedinlong-termclaimsandlong-termclaimsduewithin1year.Unrecognizedfinancingincomesshallbeadoptedbytheeffectiveinterestratemethodintheleaseterm,soastocalculateandrecognizecurrentfinancingrevenues.Thecontingentrentsshallberecordedintotheprofitsandlossesofthecurrentperiodinwhichtheyactuallyarise.
27.OtherMainAccountingPoliciesandEstimates
(1)TerminationofoperationTerminationofoperationreferstoaseparatelyidentifiableconstituentpartthatsatisfiesoneofthefollowingconditionsthathasbeendisposedofbytheCompanyorisclassifiedasheld-for-sale:
?Thisconstituentpartrepresentsanindependentmainbusinessoraseparatemainbusinessarea;?Thisconstituentpartispartofanassociatedplanthatisintendedtobedisposedofinanindependentmainbusinessoraseparatemajorbusinessarea;?Thisconstituentpartisasubsidiarythatisspecificallyacquiredforresale.
(2)HedgingAccountingToavoidcertainrisks,theCompanycarriesouthedgingofsomefinancialinstrumentsashedgingtools.TheCompanytreatshedgingthatmeetsspecifiedconditionsusinghedgingaccountingmethod.TheCompany'shedgingisfair-valuehedging,andtreatsthehedgingofforeignexchangeriskwithdefiniteundertakingatfairvalue.Atthebeginningofhedging,theCompanyrecordstherelationshipbetweenhedgingtoolsandhedgeditems,riskmanagementobjectivesandstrategiesfordifferenthedgingtransactions.Inaddition,atthebeginningandafterthehedging,theCompanyconductscontinuousevaluationoftheeffectivenessofhedgingtocheckwhetherthehedgingishighlyeffectiveduringtheaccountingperiodinwhichthehedgingrelationshipisdesignated.Fairvaluehedgingisaqualifiedderivativeinstrumentdesignatedforfairvaluehedging,andthegainsorlossesresultingfromitschangesinfairvalueareincludedinthecurrentprofitsandlosses.Thegainsorlossesofthehedgeditemsduetohedgedrisksarealsoincludedinthecurrentprofitsandlosses,andthecarryingvalueofthehedgeditemsisalsoadjusted.WhentheCompanycancelsthedesignationofhedgingrelationship,thehedginginstrumentexpiresorissold,thecontractisterminatedorexercised,ortheconditionsarenolongersatisfied,theuseofhedgingaccountingisterminated.
28.ChangesinMainAccountingPoliciesandEstimates
(1)Changesofaccountingpolicies
1)ChangesofaccountingpoliciesduetoimplementingthenewstandardsgoverningfinancialinstrumentsTheMinistryofFinanceissuedtheAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments(revisedin2017)(CK[2017]No.7),AccountingStandardsforBusinessEnterprisesNo.23-TransferofFinancialAssets(revisedin2017)(CK[2017]No.8),andAccountingStandardsforBusinessEnterprisesNo.24-HedgeAccounting(revisedin2017)(CK[2017]No.9)on31March2017,andissuedtheAccountingStandardsfor
BusinessEnterprisesNo.37-PresentationofFinancialInstruments(revisedin2017)(CK[2017]No.14)on2May2017(collectivelyreferredtoas“NewFinancialInstrumentsStandards”).EnterprisesdomesticallylistedarerequiredtoimplementtheNewFinancialInstrumentStandardssince1January2019.Approvedonthe7
th
Meetingofthe9
th
BoardofDirectorsoftheCompanyandtheCompanystartstoimplementaforesaidNewFinancialInstrumentStandardssince1January2019.AllfinancialassetsconfirmedpursuanttoNewFinancialInstrumentStandardsshallbemeasuredaspertheamortizedcostorfairvaluesubsequently.OntheexecutiondateofNewFinancialInstrumentStandards,thebusinessmodeloffinancialassetsisevaluatedandmanagedonthebasisofexistingfactandconditionoftheCompanyonthatdayandthecontractualcashflowcharacteristicsofthefinancialassetsareevaluatedonthebasisofthefactandconditionupontheinitialrecognitionoffinancialassets.Thefinancialassetsaredividedintothreecategories:Thefinancialassetsmeasuredaspertheamortizedcosts,measuredasperthefairvaluewiththechangeincludedinothercomprehensiveincomes,measuredasperthefairvaluewiththechangeincludedinthecurrentprofitandloss.Wherein,fortheequityinstrumentinvestmentmeasuredasperthefairvaluewithchangeincludedinothercomprehensiveincomes,whensuchfinancialassetscarryoutthederecognition,theaccumulativegainsorlossincludedinothercomprehensiveincomespreviouslywillbetransferredtotheretainedearningsfromothercomprehensiveincomesandaren'tincludedinthecurrentprofitandloss.PursuanttoNewFinancialInstrumentStandards,theCompany,onthebasisofexpectedcreditloss,calculatesandwithdrawstheimpairmentreserveofthefinancialassetsmeasuredattheamortizedcost,thedebtinstrumentinvestmentmeasuredatfairvaluewithchangeincludedinothercomprehensiveincomes,theleasereceivables,contractassetsandfinancialguaranteecontract,andconfirmsthecreditimpairmentloss.TheCompanytracesandappliestheNewFinancialInstrumentStandards,andmaynotconducttherestatementtotheinconsistencybetweenthepreviouscomparativefinancialstatementdatainvolvedintheclassificationandmeasurement(includingtheimpairment)andNewFinancialInstrumentStandards.Therefore,forthecumulativeimpactofthestandardimplementationforthefirsttime,theCompanyadjuststheretainedearningsorothercomprehensiveincomeatthebeginningof2019andtheamountofotherrelateditemsinthefinancialstatements,andthefinancialstatementsprioryearswerenotrestated.TheimpactsontheCompanyduetotheimplementationoftheNewFinancialInstrumentStandardsareasfollows:
①ComparativeStatementsofClassificationandMeasurementofFinancialInstrumentsbeforeandaftertheFirstExecutionDateA.InfluenceonConsolidatedFinancialStatements
| 31December2018(beforeadjustment) | 1January2019(afteradjustment) | ||||
| Item | Measurementcategory | Carryingvalue | Item | Measurementcategory | Carryingvalue |
| Financialassetsatfairvaluethroughprofitorloss | Measuredatfairvalueandchangesthereofrecordedintothecurrentprofitofloss | 5,464,984.92 | Held-for-tradingfinancialassets | Measuredatfairvalueandchangesthereofrecordedintothecurrentprofitofloss | 5,464,984.92 |
| Notesreceivable | Amortizedcost | 3,329,711,954.15 | Notesreceivable | Amortizedcost | 3,136,050,327.88 |
| Accountsreceivablefinancing | Measuredatfairvalueandchangesthereofrecordedintoother | 193,661,626.27 | |||
| comprehensiveincome | |||||
| Accountsreceivable | Amortizedcost | 4,458,053,586.42 | Accountsreceivable | Amortizedcost | 4,457,458,904.32 |
| Otherreceivables | amortizedcost | 406,196,649.48 | Otherreceivables | amortizedcost | 403,907,076.96 |
| Available-for-salefinancialassets | Amortizedcost | 633,664,881.33 | Held-for-tradingfinancialassets | Measuredatfairvalueandchangesthereofrecordedintothecurrentprofitofloss | 61,494,666.97 |
| Otherequityinstrumentsinvestment | Measuredatfairvalueandchangesthereofrecordedintoothercomprehensiveincome | 23,940,214.36 | |||
| Othernon-currentfinancialassets | Measuredatfairvalueandchangesthereofrecordedintothecurrentprofitofloss | 548,230,000.00 | |||
| Financialliabilitiesatfairvaluethroughprofitorloss | Measuredatfairvalueandchangesthereofrecordedintothecurrentprofitorloss | 2,459,603.25 | Held-for-tradingfinancialliabilities | Measuredatfairvalueandchangesthereofrecordedintothecurrentprofitorloss | 2,459,603.25 |
B.InfluenceontheCompany’sFinancialStatements
| 31December2018(beforeadjustment) | 1January2019(afteradjustment) | ||||
| Item | Measurementcategory | Carryingvalue | Item | Measurementcategory | Carryingvalue |
| Financialassetsmeasuredatfairvalueandwhosechangesareincludedincurrentprofitsandlosses | Measuredatfairvalueanditschangesareincludedincurrentprofitsandlosses | 5,464,984.92 | Transactionalfinancialassets | Measuredatfairvalueanditschangesareincludedincurrentprofitsandlosses | 5,464,984.92 |
| Notesreceivable | Amortizedcost | 2,181,466,683.90 | Notesreceivable | Amortizedcost | 2,181,166,683.90 |
| Accountsreceivablefinancing | Measuredatfairvalueandchangesthereofrecordedintoothercomprehensiveincome | 300,000.00 | |||
| Accounts | Amortizedcost | 7,427,246,429.42 | Accounts | Amortizedcost | 7,426,742,836.53 |
| receivable | receivable | ||||
| Otherreceivables | amortizedcost | 6,661,693,463.33 | Otherreceivables | amortizedcost | 6,660,069,55 |
| Available-for-salefinancialassets | Amortizedcost | 326,164,881.33 | Held-for-tradingfinancialassets | Measuredatfairvalueandchangesthereofrecordedintothecurrentprofitofloss | 61,494,666.97 |
| Otherequityinstrumentsinvestment | Measuredatfairvalueandchangesthereofrecordedintoothercomprehensiveincome | 14,440,214.36 | |||
| Othernon-currentfinancialassets | Measuredatfairvalueandchangesthereofrecordedintothecurrentprofitofloss | 250,230,000.00 | |||
| Financialliabilitiesatfairvaluethroughprofitorloss | Measuredatfairvalueandchangesthereofrecordedintothecurrentprofitorloss | 2,459,603.25 | Held-for-tradingfinancialliabilities | Measuredatfairvalueandchangesthereofrecordedintothecurrentprofitorloss | 2,459,603.25 |
②ReconciliationStatementsonAdjustmentofCarryingValueofOriginalFinancialInstrumentstothatofNewFinancialInstrumentsClassifiedandMeasuredinAccordancewithNewFinancialInstrumentsStandardsontheFirstExecutionDateA.InfluenceonConsolidatedFinancialStatements
| Item | 31December2018(beforeadjustment) | Reclassified | Remeasured | 1January2019(afteradjustment) |
| Amortizedcost: | ||||
| Notesreceivable | 3,329,711,954.15 | - | - | - |
| Less:transferredtoaccountsreceivablefinancing | - | 193,661,626.27 | - | - |
| Remeasurement:provisionsforexpectedcreditloss | - | - | - | - |
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | - | - | - | 3,136,050,327.88 |
| Accountsreceivable | 4,458,053,586.42 | - | - | - |
| Less:transferredtoaccountsreceivablefinancing | - | - | - | - |
| Remeasurement:provisionforexpectedcreditlosses | - | - | 594,682.10 | - |
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | - | - | - | 4,457,458,904.32 |
| Item | 31December2018(beforeadjustment) | Reclassified | Remeasured | 1January2019(afteradjustment) |
| Otherreceivables | 406,196,649.48 | - | - | - |
| Remeasurement:provisionforexpectedcreditlosses | - | - | 2,289,572.52 | - |
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | - | - | - | 403,907,076.96 |
| Atfairvaluethroughprofitorloss: | ||||
| Held-for-tradingfinancialassets | - | - | - | - |
| Add:transferredfromfinancialassetsatfairvaluethroughprofitorloss(classifiedaccordingtooriginalstandards) | - | 5,464,984.92 | - | - |
| Add:transferredfromavailable-for-salefinancialassets(orginalstandards) | - | 61,494,666.97 | - | - |
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | - | - | - | 66,959,651.89 |
| Available-for-salefinancialassets | 633,664,881.33 | - | - | - |
| Less:held-for-tradingfinancialassets | - | 61,494,666.97 | - | - |
| Less:otherequityinstrumentinvestments | - | 23,940,214.36 | - | - |
| Less:othernon-currentfinancialassets | - | 548,230,000.00 | - | - |
| Remeasurement:provisionsforexpectedcreditloss | - | - | - | - |
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | - | - | - | - |
| Othernon-currentfinancialassets | - | - | - | - |
| Transferredfromavailable-for-salefinancialassets | - | 548,230,000.00 | - | - |
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | - | - | - | 548,230,000.00 |
| Held-for-tradingfinancialliabilities | - | - | ||
| Add:transferredfromfinancialliabilitiesatfairvaluethroughprofitorloss(classifiedaccordingto | - | 2,459,603.25 | - |
| Item | 31December2018(beforeadjustment) | Reclassified | Remeasured | 1January2019(afteradjustment) |
| originalstandards) | ||||
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | - | - | 2,459,603.25 | |
| Atfairvaluethroughcomprehensiveincome: | ||||
| Accountsreceivablefinancing | - | - | - | - |
| Transferredfromnotesreceivable | - | 193,661,626.27 | - | - |
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | - | - | 193,661,626.27 | |
| Otherequityinstrumentinvestments | - | - | ||
| Transferredfromavailablefor-salefinancialassets | - | 23,940,214.36 | - | - |
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | - | - | - | 23,940,214.36 |
B.InfluenceontheCompany’sFinancialStatements
| Item | 31December2018(beforeadjustment) | Reclassified | Remeasured | 1January2019(afteradjustment) |
| Amortizedcost: | ||||
| Notesreceivable | 2,181,466,683.90 | - | - | - |
| Less:transferredtoaccountsreceivablefinancing | - | 300,000.00 | - | - |
| Remeasurement:provisionsforexpectedcreditloss | - | - | - | - |
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | - | - | - | 2,181,166,683.90 |
| Accountsreceivable | 7,427,246,429.42 | - | - | - |
| Less:transferredtoaccountsreceivablefinancing | - | - | - | - |
| Remeasurement:provisionsforexpectedcreditloss | - | - | 503,592.89 | - |
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | - | - | - | 7,426,742,836.53 |
| Otherreceivables | 6,661,693,463.33 | - | - | - |
| Less:transferredto | - | - | - | - |
| Item | 31December2018(beforeadjustment) | Reclassified | Remeasured | 1January2019(afteradjustment) |
| accountsreceivablefinancing | ||||
| Remeasurement:provisionforexpectedcreditlosses | - | - | 1,623,912.27 | - |
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | - | - | - | 6,660,069,551.06 |
| Atfairvaluethroughprofitorloss: | ||||
| Helf-for-tradingfinancialassets | - | - | - | - |
| Add:transferredfromfinancialassetsatfairvaluethroughprofitorloss(classifiedaccordingtooriginalstandards) | - | 5,464,984.92 | - | - |
| Add:transferredfromavailable-for-salefinancialassets(originalstandards) | - | 61,494,666.97 | - | - |
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | - | - | - | 66,959,651.89 |
| Available-for-salefinancialassets | 326,164,881.33 | - | - | - |
| Less:held-for-tradingfinancialassets | - | 61,494,666.97 | - | - |
| Less:otherequityinstrumentinvestments | - | 14,440,214.36 | - | - |
| Less:othernon-currentfinancialassets | - | 250,230,000.00 | - | - |
| Remeasurement:provisionsforexpectedcreditloss | - | - | - | - |
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | - | - | - | - |
| Othernon-currentfinancialassets | - | - | - | |
| Transferredfromavailable-for-salefinancialassets | - | 250,230,000.00 | - | - |
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | - | - | - | 250,230,000.00 |
| Held-for-tradingfinancialliabilities | - | - | - | |
| Add:transferredfromfinancialliabilitiesatfairvaluethrough | - | 2,459,603.25 | - | - |
| Item | 31December2018(beforeadjustment) | Reclassified | Remeasured | 1January2019(afteradjustment) |
| profitorloss(classifiedaccordingtooriginalstandards) | ||||
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | - | - | - | 2,459,603.25 |
| Atfairvaluethroughcomprehensiveincome: | ||||
| Accountsreceivablefinancing | - | - | - | - |
| Transferredfromnotesreceivable | - | 300,000.00 | - | |
| Transferredfromaccountsreceivable | - | - | - | - |
| Remeasurement:atfairvalue | - | - | - | - |
| Remeasurement:provisionsforexpectedcreditloss | - | - | - | - |
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | - | - | - | 300,000.00 |
| Otherequityinstrumentinvestments | - | - | - | - |
| Transferredfromavailable-for-salefinancialassets | - | 14,440,214.36 | - | - |
| Balancepresentedaccordingtonewfinancialinstrumentsstandards | - | - | 14,440,214.36 |
③ReconciliationStatementsonProvisionforFinancialAssetsImpairmentontheFirstExecutionDateA.InfluenceonConsolidatedFinancialStatements
| Measurementcategory | 31December2018(beforeadjustment) | Reclassified | Remeasured | 1January2019(afteradjustment) |
| Amortizedcost: | ||||
| Provisionforimpairmentofnotesreceivable | - | - | - | - |
| Provisionforimpairmentofaccountsreceivable | 414,925,927.88 | - | 594,682.10 | 415,520,609.98 |
| Provisionforimpairmentofotherreceivables | 213,129,067.76 | - | 2,289,572.52 | 215,418,640.28 |
| Provisionforimpairmentofavailable-for-salefinancialassets | 10,747,785.64 | -10,747,785.64 | - | - |
B.InfluenceontheCompany’sFinancialStatements
| Measurementcategory | 31December2018(beforeadjustment) | Reclassified | Remeasured | 1January2019(afteradjustment) |
| Amortizedcost: | ||||
| Provisionforimpairmentofnotesreceivable | - | - | - | - |
| Provisionforimpairmentofaccountsreceivable | 246,549,012.31 | - | 503,592.89 | 247,052,605.20 |
| Provisionforimpairmentofotherreceivables | 187,825,380.06 | - | 1,623,912.27 | 189,449,292.33 |
| Provisionforimpairmentofavailable-for-salefinancialassets | 4,997,785.64 | -4,997,785.64 | - | - |
C.Influenceonretainedearningsinconsolidatedfinancialstatementson1January2019
| Remeasurementcategory | Consolidatedretainedearnings | Consolidatedsurplusreserves |
| 31December2018 | 4,271,408,192.21 | 1,227,564,785.19 |
| Remeasurementonimpairmentofaccountsreceivable | -2,884,254.62 | - |
| 1January2019 | 4,268,523,937.59 | 1,227,564,785.19 |
2)ChangesinformatsoffinancialstatementsOnApril30,2019,theMinistryofFinanceissuedthe"NoticeonRevisingandPrintingtheFormatofGeneralEnterpriseFinancialStatementsfor2019"(Caihui[2019]No.6),revisingtheformatofgeneralenterprisefinancialstatements,requiringthepreparationofthemid-termandpost-2019Implementationoffinancialstatements.OnSeptember19,2019,theMinistryofFinanceissuedthe"NoticeonRevisingandPrintingtheFormatofConsolidatedFinancialStatements(2019Version)(Caihui[2019]No.16)(hereinafterreferredtoas"Caihui[2019]No.16"),revisingtheformatofconsolidatedfinancialreportthatrequiresthepreparationofconsolidatedfinancialstatementsfor2019andbeyond.ThecompanybegantoimplementtheabovestandardsinaccordancewiththerequirementsoftheMinistryofFinance.Someofthecomparativestatementdatainthecurrentfinancialstatementshavebeenrearrangedtomeetthereportingformatoftheyear.Theimplementationoftheabovenoticewillonlyaffectthepresentationofthefinancialstatementsandwillnotaffectthecompany’sprofitorloss,Totalassets,netassetshaveanimpact.
(2)ChangeofaccountingestimatesTherewasnoanychangeofaccountingestimateoftheCompanyintheReportingPeriod.
29.CriticalAccountingJudgmentsandEstimatesDuetotheinsideuncertaintyofoperatingactivity,theCompanyneededtomakejudgments,estimatesandassumptiononthecarryingvalueoftheaccountswithoutaccuratemeasurementduringtheemploymentofaccountingpolicies.Andthesejudgments,estimatesandassumptionweremadebasingonthepriorexperienceoftheseniorexecutivesoftheCompany,aswellasinconsiderationofotherfactors.Thesejudgments,estimatesandassumptionwouldalsoaffectthereportamountofincome,costs,assetsandliabilities,aswellasthedisclosureofcontingentliabilitiesonbalancesheetdate.However,theuncertaintyoftheseestimateswaslikelytocausesignificantadjustmentonthecarryingvalueoftheaffectedassetsandliabilities.TheCompanywouldcheckperiodicallytheabovejudgments,estimatesandassumptiononthebasisofcontinuingoperation.Forthechangesinaccountingestimatesonlyaffectedonthecurrentperiod,theinfluenceshouldberecognizedattheperiodofchangeoccurred;forthechangesinaccounting
estimatesaffectedthecurrentperiodandalsothefutureperiod,theinfluenceshouldberecognizedattheperiodofchangeoccurredandfutureperiod.Onthebalancesheetdate,theCompanyneededtomakejudgments,estimatesandassumptionontheaccountsinthefollowingimportantitems:
(1)RevenueRecognition-ConstructionContractIftheconstructioncontractresultscanbereliablyestimated,theCompanyadoptsthemethodofcompletionpercentagetoconfirmthecontractincomeonthebalancesheetdate.ThepercentageofcontractcompletionisconfirmedinaccordancewiththemethoddescribedinNoteIV,233,Revenue,andiscumulativelycalculatedineachfiscalyearinwhicheachconstructioncontractisexecuted.Significantjudgmentisrequiredindeterminingthepercentageofcompletion,contractcostsincurred,estimatedtotalcontractincomeandtotalcost,andcontractrecyclability,andtheprojectmanagementpersonnelusuallymakejudgmentsmainlybasedonpastexperienceandwork.Theestimatedtotalcontractincomeandtotalcost,aswellasestimatedchangesincontractexecutionresults,mayhaveanimpactonoperatingincome,operatingcosts,andprofitorlossforthecurrentorsubsequentperiodofthechange,andmayhaveasignificantimpact.
(2)CategorizationofleasingInaccordancewithAccountingStandardsforEnterprisesNo.21–Leasing,theCompanycategorizedtheleasingintooperatingleaseandfinancelease.Duringthecategorization,themanagementlevelneededtomakeanalysisandjudgmentonwhetheralltheriskandcompensationrelatedwiththeleasedassetshadbeentransferredtotheleasee,orwhethertheCompanyhadalreadyundertakenalltheriskandcompensationrelatedwiththeleasedassets.
(3)FinancialassetsimpairmentIftheCompanyadoptstheexpectedcreditlossmodeltoevaluatefinancialinstrumentimpairment,it'snecessarytomakesignificantjudgmentsandestimatesontheexpectedcreditlossmodel,andallreasonableandwell-foundedinformationneedstobetakenintoaccount,includingforward-lookinginformation.Whensuchjudgmentsandestimatesaremade,theexpectedchangesinthedebtor'screditriskareinferredbasedonhistoricaldataincombinationwitheconomicpolicies,macroeconomicindicators,industryrisks,externalmarketconditions,technologicalenvironment,andchangesincustomercircumstances.
(4)ProvisionforfallingpriceofinventoriesInaccordancewiththeaccountingpoliciesofinventories,fortheinventoriesthatthecostsweremorethanthenetrealizablevalueaswellasout-of-dateanddull-saleinventories,theCompanywithdrawntheprovisionforfallingpriceofinventoriesontheloweronebetweencostsandnetrealizablevalue.Evaluatingthefallingpriceofinventoriesneededthemanagementlevelgainthevalidevidenceandtakefullconsiderationofthepurposeofinventories,influenceofeventsafterbalancesheetdateandotherfactors,andthenmaderelevantjudgmentsandestimates.Theactualamountandthedifferenceofpreviousestimateswouldaffectthecarryingvalueofinventoriesandthewithdrawalandreversalonprovisionforbaddebtsofinventoriesduringtheperiodofestimatesbeingchanged.
(5)ThefairvalueoffinancialinstrumentForthefinancialinstrumentswithoutactivemarket,theCompanyrecognizedthefairvaluebyvariousmethods.Theseevaluationmethodsincludeddiscountedcashflowmodeanalysis,etc.TheCompanyneededtoestimatethefuturecashflow,creditrisk,fluctuationrateofmarketandrelativityandotherfactors,aswellaschoosethepropertydiscountrate.Duetotheuncertaintyofrelevantassumptions,sotheirchangeswouldaffectthefairvalueoffinancialinstrument.Forequityinstrumentinvestmentorcontractswithpublicoffers,thecostwillnotbetakenastheoptimalestimationofthefairvaluebytheCompanysince1January2019.
(6)Provisionforimpairmentoflong-termassetsTheCompanymadeajudgmentonthenon-currentassetsotherthanfinancialassetswhethertheyhadanyindicationofimpairmentonthebalancesheetdate.Fortheintangibleassetswithoutfiniteservicelife,otherthantheannualimpairmenttest,theyshouldbesubjecttotheimpairmenttestwhentherewasanyindicationofimpairment.Forothernon-currentnon-financialassets,whichshouldbesubjectedtoimpairmenttestwhentherewasindicationofimpairmentindicatedthatthe
carryingvaluecan’tberecoverable.Whenthecarryingvalueoftheassetsorassetsportfoliowasmorethantherecoverableamount,whichwasthehigheronebetweenthenetamountoffairvalueafterdeductingthedisposalexpensesandthediscountedamountoftheestimatedfuturecashflow,itmeansimpairmentincurred.Thenetamountoffairvalueafterdeductingthedisposalexpensesshouldbefixedthepriceinthesaleagreementforsimilarassetsinthefairtransactionminustheincreasedcostsdirectlyattributabletotheassetsdisposal.Whenestimatedthediscountedvalueoffuturecashflow,theCompanyneededtomakeimportantjudgmentontheoutput,sellingprice,relevantcostsandthediscountrateforcalculatingthediscountedamount,etc.Whenestimatedtherecoverableamount,theCompanywouldadoptalltheavailabledocuments,includingthepredictionforrelevantoutput,sellingpriceandrelevantoperatingcostsarisingfromreasonableandsupportiveassumptions.TheCompanymadetheimpairmenttestongoodwillatleastonetimeperyear,whichrequiredtopredictthediscountedamountofthefuturecashflowoftheassetsorassetsportfoliowiththedistributedgoodwill,forwhich,theCompanyneededtopredictthefuturecashflowoftheassetsorassetsportfolio,andadoptthepropertydiscountedratetodecidethediscountedamountoffuturecashflow.
(7)DepreciationandamortizationFortheinvestmentrealestate,fixedassetsandintangibleassets,theCompanywithdrewthedepreciationandamortizationbyadoptingthestraight-linemethodduringtheservicelifeafterfullconsiderationofthesalvagevalue.TheCompanycheckedtheservicelifeperiodicallysoastodecidetheamountofdepreciationandamortizationateachReportingPeriod.TheservicelifewasfixedbytheCompanyinaccordancewiththepreviousexperienceofthesimilarassetsandtheexpectedtechnicalupdate.Iftherewasanysignificantchangeonthepreviousestimates,thedepreciationandamortizationexpensesshouldbeadjusted.
(8)DeferredincometaxassetsWithinthelimitthatitwaslikelytohavesufficienttaxableprofitstooffsetthelosses,theCompanyrecognizedthedeferredincometaxassetsbyalltheunusedtaxlosses,whichneededthemanagementleveloftheCompanytoestimatetimeandamountofthefuturetaxableprofitsincurredwithmanyjudgments,aswellasintegratestrategyoftaxpayment,todecidetheamountofdeferredincometaxassetswhichshouldberecognized.
(9)IncometaxDuringtheroutineoperatingactivities,thereweresomeuncertaintyintheultimatetaxtreatmentandcalculationforpartsoftransactions.Someaccountsofsuchtransactioncouldbelistedaspre-taxexpendituresonlyaftertheapprovaloftaxationauthorities.Iftherewereanydifferencesbetweentheultimateresultofrecognitionforthesetaxationmatersandtheirinitialestimates,thedifferenceswouldaffectthecurrentincometaxanddeferredincometaxattheperiodofultimaterecognition.
(10)InternalearlyretirementwelfareandsupplementaryretirementwelfareAmountsofexpendituresandliabilitiesofinternalearlyretirementwelfareandsupplementaryretirementwelfareshouldbedeterminedaccordingtoassumptionterms.Assumptiontermsincludediscountrate,averagegrowthrateofmedicalcosts,growthrateofsubsidiesforearlyretirementemployeesandretireesandotherfactors.Thedifferencesofactualresultsandassumptionshouldbeconfirmedimmediatelyandincludedintocostsofcurrentyear.Althoughthemanagementhaveadoptedreasonableassumptionterms,changesofactualexperiencevalueandassumptiontermsmayaffecttheinternalearlyretirementwelfare,supplementaryretirementbenefitsandbalanceofliabilities.
(11)ProvisionsTheCompanymadetheestimationonproductqualityguarantee,predictedlossofcontractandthefinefordelayeddeliveryetc.andwithdrewtherelevantprovisionforprovisionsinaccordancetheprovisionsofcontract,currentknowledgeandexperience.UndertheconditionthatthecontingenteventhasformedacurrentdutyandfulfillingthedutyislikelytocausetheeconomicalinterestoutflowtheCompany,theCompanymeasurestheprovisionsinaccordancewiththebestestimateofthenecessaryexpensesfortheperformanceofthecurrentduty.Therecognitionandmeasurementof
provisionswereheavilyreliedonthejudgmentofthemanagementteam.Duringtheprocessofmakingjudgment,theCompanyneededtoappraisetherelevantrisks,uncertaintyandthetimevalueofmoneyandetc.Ofwhich,theCompanyestimatedtheliabilitiesbasingontheafter-saleservicescommitmentstothecustomersuponthesale,repairandreformofgoods.Whenestimatingtheliabilities,theCompanyhasfullytakentheconsiderationofthelatestrepairexperience,butwhichmaynotreflecttherepairsituationinthefuture.Anyincrease/decreaseoftheprovisionforestimatedliabilitiesmayaffecttheprofitsandlossesinthefutureperiods.
(12)MeasurementforfairvalueSomeassetsandliabilitiesofthisCompanywillbemeasuredatfairvalueinthefinancialstatements.TheboardofdirectorsofthisCompanyhasestablishedtheappraisementcommittee(ledbytheCFOofthisCompany)toconfirmappropriateappraisementtechnologyandinputvalueformeasurementoffairvalue.ThisCompanywillapplyavailableandobservablemarketdataduringestimatingthefairvalueofsomeassetsandliabilities.IftheinputvalueinLevel1isnotavailable,thisCompanywillentrustathirdqualifiedappraiserfortheestimation.Theappraisementcommitteewillcloselycooperatewiththeoutsideappraisertodetermineproperestimationtechnologyandinputvaluesoftherelatedmodels.CFOsubmitsareporttothediscoveriesoftheappraisementcommitteetotheboardofdirectorsofthisCompanytoexplainthereasonsoffluctuationoffairvalueofrelatedassetsandliabilities.RelatedinformationoftheappraisementtechnologyandinputvalueduringtheprocessofconfirmingthefairvalueofvariousassetsandliabilitiesshallbedisclosedinNoteX.V.Taxation
1.MainTaxesandTaxRate
| Categoryoftaxes | Basis | Specificsituationofthetaxesrate |
| VAT | CalculatedtheoutputtaxatthetaxrateandpaidtheVATbytheamountafterdeductingthedeductiblewithholdingVATatcurrentperiod,ofwhichtheVATapplicabletoeasycollectionwon’tbelongtothedeductiblewithholdingVAT. | 3%、5%、6%、9%、10%、13%、16% |
| Urbanmaintenanceandconstructiontax | Thecirculatingtaxactuallypaid | Paidat7%ofthecirculatingtaxactuallypaid,ofwhichDongguanPacking,DongguanKonka,BoluoKonka,BoluoKonkaPrecision,ChengduAnren,XingDaHongYe,DongguanKonkaInvestment,XinfengMicrocrystalline,BinzhouWeiyijie,BeihaiJingmai,BinzhouEcon,SuiningPengxiKangrunEnvironmentManagementCo.,Ltd.,DayiKangrunWaterCo.,Ltd.of5%ofactuallypaidturnover.SubeiMongolAutonomousCountyKangrunWaterCo.,Ltd.paidbyhalfafterpaidof5%,andJiangxiKonkaandNanoCrystallizedGlassof1%. |
| Educationsurtax | Thecirculatingtaxactuallypaid | 3% |
| Localeducationsurtax | Thecirculatingtaxactuallypaid | ThesubsidiaryShanghaiKonka:1%andothercompanies:2% |
| Enterpriseincometax | Taxableincome | 25%/seenote(3)fordetails |
Note:(1)TheoriginaltaxrateappliedbytheCompanyonVATtaxablesalesorimportedgoodswas16%/10%.AccordingtotheAnnouncementonPoliciesGoverningDeepeningVATReformfromtheMinistryofFinance,theStateAdministrationofTaxationandtheGeneralAdministrationofCustoms(CGHGG[2019]No.39),theapplicabletaxrateisadjustedto13%/9%,beingeffectivefrom1April2019.
(2)AccordingtoregulationsofTemporaryProvisionsofIncomeTaxofTrans-boundaryTax
PaymentEnterprisesbyStateAdministrationofTaxation,residententerpriseswithoutbusinessestablishmentorplacesoflegalpersonsshouldbetaxpaymententerpriseswiththeadministrativemeasuresofincometaxof“unifiedcomputing,level-to-leveladministration,localprepayment,liquidationsummary,andfinancetransfer”.Itcameintoforcefrom1January2008.Accordingtotheabovemethods,theCompany’ssalesbranchcompaniesineachareawillhandinthecorporateincometaxesinadvancefrom1January2008andwillbefinalsettleduniformlybytheCompanyattheyear-end.
(3)Themaintaxpayersofdifferentcorporateincometaxratesareexplainedasfollows:
| Nameofentity | Incometaxrate |
| ElectronicsTechnology,AnhuiKonka,DongguanKonka,EconTechnology,XingDaHongYe,Wankaida,E2info,JiangxiKonka,XinfengMicrocrystalline,NanoCrystallizedGlass,TelecommunicationTechnology,SichuanKonka,BoluoKonkaPrecision | 15% |
| HongKongKonka,KonkaElectricalAppliancesInternationalTrading,JialiInternational,Kangjietong,JiaxinTechnology,JiaxinTechnology,KonkaElectricalAppliancesInvestment,KonkaSmartTech,KonkaMobility | 16.5% |
| ChainKingdomMemoryTechnologies | 8.25%/16.5% |
| KonkaEurope | 16.8% |
| KanghaoTechnology | 22.5% |
2.TaxPreferenceandApprovedDocuments
(1)AccordingtoCaishui[2019]No.13:Noticeontheimplementationoftheinclusivetaxreductionandexemptionpolicyforsmallandmicroenterprises,fromJanuary1,2019toDecember31,2021,theannualtaxableincomeofsmallandprofitableenterprisesisnotTheportionexceeding1millionyuanwillbereducedto25%ofthetaxableincome,andthecorporateincometaxwillbepaidattherateof20%;theportionoftheannualtaxableincomeexceeding1millionyuanbutnotexceeding3millionyuanwillbereducedby50%Includethetaxableincomeandpaycorporateincometaxatarateof20%.
(2)OnNovember30,2016,BokangPrecision,asubsidiaryofthecompany,obtainedthehigh-techenterprisecertificatejointlyissuedbytheGuangdongProvincialDepartmentofScienceandTechnology,theGuangdongProvincialDepartmentofFinance,theGuangdongStateTaxationBureau,andtheGuangdongLocalTaxationBureau.ThecertificatenumberisGR201644001388,validforthreeyears,accordingtorelevanttaxregulations,BokangPrecisionhasenjoyedrelevantpreferentialtaxpoliciesforhigh-techenterprisesforthreeconsecutiveyearsfrom2016to2018,andissubjecttocorporateincometaxatapreferentialtaxrateof15%.OnFebruary19,2020,BokangPrecisionwaslistedinthereplyletter(Guokehuozi[2020]No.54)ofthethirdbatchofhigh-techenterprisesinGuangdongProvince,whichwasannouncedbytheOfficeoftheNationalLeadingGroupforHigh-techEnterpriseCertificationandManagementThecertificatenumberisGR201944007820.Thecompanyestimatesthattherearenoobstaclesinthehigh-techreview,andcollectsandpayscorporateincometaxatapreferentialtaxrateof15%.
(3)On15August2017,ShenzhenKonkaTelecommunicationsTechnologyCo.,Ltd.,thesubsidiaryofthisCompanyobtainedthehigh-techenterprisecertificate(certificateNo.:GR201744201722)jointlyissuedbyShenzhenTechnologyInnovationCommittee,FinanceCommissionofShenzhenMunicipality,ShenzhenMunicipalOffice,SAT,ShenzhenLocalTaxationBureau,withavalidperiodofthreeyears.Accordingtorelatedtaxationregulations,ShenzhenKonkaTelecommunicationsTechnologyCo.,Ltd.enjoysrelatedtaxationpreferentialpoliciesasahigh-techenterprisefrom2017to2019andpaystheenterpriseincometaxasperthepreferentialtaxrateof15%.
(4)On23August2017,JiangxiKonkaNewMaterialTechnologyCo.,Ltd.,thesubsidiaryofthis
CompanyobtainedtheHigh-techEnterpriseCertificate(certificateNo.:GR201736000497)jointlyissuedbyDepartmentofScienceandTechnologyofJiangxiProvince,DepartmentofFinanceofJiangxiProvince,JiangxiProvincialOffice,SAT,JiangxiLocalTaxationBureauwithavalidperiodofthreeyears.Accordingtorelatedtaxationregulations,thecompanyenjoysrelatedtaxationpreferentialpoliciesasahigh-techenterprisefrom2017to2019andpaystheenterpriseincometaxasperthepreferentialtaxrateof15%.
(5)On23August2017,JiangxiGoldenPhoenixNanoCrystallizedGlassCo.,Ltd.,thesubsidiaryoftheCompanyobtainedtheHigh-techEnterpriseCertificate(certificateNo.:GR201736000110)jointlyissuedbyDepartmentofScienceandTechnologyofJiangxiProvince,DepartmentofFinanceofJiangxiProvince,JiangxiProvincialOffice,SAT,JiangxiLocalTaxationBureauwithavalidperiodofthreeyears.Accordingtorelatedtaxationregulations,thecompanyenjoysrelatedtaxationpreferentialpoliciesasahigh-techenterprisefrom2017to2019andpaystheenterpriseincometaxasperthepreferentialtaxrateof15%.
(6)On31October2017,Wankaida,thesubsidiaryofthisCompanyobtainedtheHigh-techEnterpriseCertificate(certificateNo.:GR201744204716)jointissuedbyShenzhenTechnologyInnovationCommittee,FinanceCommitteeofShenzhenMunicipality,ShenzhenMunicipalOffice,SATandShenzhenLocalTaxationBureauwithavalidperiodofthreeyears.Accordingtorelatedtaxationregulations,Wankaidaenjoysrelatedtaxationpreferentialpoliciesasahigh-techenterprisefrom2017to2019andpaystheenterpriseincometaxasperthereferentialtaxrateof15%.
(7)On9November2017,DongguanKonkaElectronicCo.,Ltd.,thesubsidiaryofthisCompanyobtainedtheHigh-techEnterpriseCertificate(certificateNo.:GR201744003812)jointlyissuedbyDepartmentofScienceandTechnologyofGuangdongProvince,DepartmentofFinanceofGuangdongProvince,GuangdongProvincialOffice,SAT,GuangdongLocalTaxationBureauwithavalidperiodofthreeyears.Accordingtorelatedtaxationregulations,thecompanyenjoysrelatedtaxationpreferentialpoliciesasahigh-techenterprisefrom2017to2019andpaystheenterpriseincometaxasperthepreferentialtaxrateof15%.
(8)On28December2017,EconTechnology,asubsidiaryoftheCompany,obtainedtheHigh-techEnterpriseCertificate(certificateNo.:GR201737001495)jointlyissuedbyDepartmentofScienceandTechnologyofShangdongProvince,DepartmentofFinanceofShangdongProvince,ShangdongProvincialOffice,SAT,ShangdongLocalTaxationBureauwithavalidperiodofthreeyears.Accordingtotherelevanttaxregulations,thecompanyenjoysrelatedtaxincentivesforhigh-techcompaniesforthreeconsecutiveyearsfrom2017to2019,andissubjecttocorporateincometaxatapreferentialrateof15%.
(9)On16October2018,ShenzhenE2infoNetworkTechnologyCo.,Ltd.,thesubsidiaryofthisCompanyobtainedthehigh-techenterprisecertificate(certificateNo.:GR201844201969)jointlyissuedbyShenzhenTechnologyInnovationCommittee,FinanceCommitteeofShenzhenMunicipality,ShenzhenTaxationBureauofSATwithavalidperiodofthreeyears.Accordingtorelatedtaxationregulations,thecompanyenjoysrelatedtaxationpreferentialpoliciesasahigh-techenterprisefrom2018to2020andpaystheenterpriseincometaxasperthepreferentialtaxrateof15%.
(10)On28November2018,theCompany’ssubsidiaryXingDaHongYereceivedtheHigh-techEnterpriseCertificate(No.GR201844008446withthe3-yearperiodofvalidity)jointlyissuedbyDepartmentofScienceandTechnologyofGuangdongProvince,DepartmentofFinanceofGuangdongProvinceandStateAdministrationofTaxation(GuangdongProvincialTaxService).Accordingtorelevanttaxregulations,from2018to2020,theenterpriseshallbeeligibleforenjoyingrelevantpreferentialtaxpoliciesasanewhigh-techenterpriseandcorrespondingcorporateincometaxshallbepaidbasedonthepreferentialtaxrateof15%.
(11)OnSeptember9,2019,AnhuiKonka,thesubsidiaryoftheCompany,obtainedacertificateofhigh-techenterprisejointlyissuedbyAnhuiScienceandTechnologyDepartment,AnhuiProvincialDepartmentofFinanceandAnhuiProvincialTaxBureauoftheStateAdministrationofTaxation.ThecertificatenumberisGR201934000966andisvalidforthreeyears.Accordingtorelevanttaxregulations,AnhuiKonkashallenjoyrelevantpreferentialtaxpoliciesforhigh-techenterprisesforthreeconsecutiveyearsfrom2019to2021andpaytheenterpriseincometaxatapreferentialtaxrate
of15%.
(12)OnSeptember16,2019,XinfengMicrocrystalline,thesubsidiaryoftheCompany,obtainedahigh-techenterprisecertificatejointlyissuedbyJiangxiScienceandTechnologyDepartment,JiangxiProvincialDepartmentofFinanceandJiangxiProvincialTaxBureauoftheStateAdministrationofTaxation.ThecertificatenumberisGR201936000744andisvalidforthreeyears.Accordingtorelevanttaxregulations,XinfengMicrocrystallineshalllenjoyrelevantpreferentialtaxpoliciesforhigh-techenterprisesforthreeconsecutiveyearsfrom2019to2021andpaytheenterpriseincometaxatapreferentialtaxrateof15%.
(13)OnNovember28,2019,SichuanKonka,asubsidiaryoftheCompany,obtainedacertificateofhigh-techenterprisejointlyissuedbySichuanScienceandTechnologyDepartment,SichuanProvincialDepartmentofFinanceandSichuanProvincialTaxBureauoftheStateAdministrationofTaxation.ThecertificatenumberisGR201951002096andisvalidforthreeyears.Accordingtorelevanttaxregulations,SichuanKonkashallenjoyrelevantpreferentialtaxpoliciesforhigh-techenterprisesforthreeconsecutiveyearsfrom2019to2021andpaytheenterpriseincometaxatapreferentialtaxrateof15%.
(14)OnDecember9,2019,ElectronicsTechnology,thesubsidiaryoftheCompany,obtainedaCertificateOfHigh-techEnterprisejointlyissuedbyShenzhenScienceandTechnologyDepartment,ShenzhenProvincialDepartmentofFinanceandShenzhenProvincialTaxBureauoftheStateAdministrationofTaxation.ThecertificatenumberisGR201944204287andisvalidforthreeyears.Accordingtorelevanttaxregulations,ElectronicsTechnologyshallenjoyrelevantpreferentialtaxpoliciesforhigh-techenterprisesforthreeconsecutiveyearsfrom2019to2021andpaytheenterpriseincometaxatapreferentialtaxrateof15%.
(15)AccordingtotheNoticeonIssuesConcerningthePromotionofEnergy-SavingServiceIndustryDevelopmentVATBusinessTaxandCorporateIncomeTaxPolicyIssuedbytheMinistryofFinanceandtheStateAdministrationofTaxation(Caishui[2010]No.110)Fortheincome,theenterpriseenjoysthe"threeexemptionsandthreehalves"preferentialtreatmentofcorporateincometaxsincethetaxyearinwhichthefirstproductionandoperationincomeoftheprojectisobtained.BinhaiSewageandLairunHoldings,subsidiariesofthecompany,enjoythistaxincentive.CoastalsewagewillbeexemptfromcorporateincometaxfromMarch1,2017toFebruary29,2020,andcorporateincometaxwillbeleviedathalfthe25%legaltaxratefromMarch1,2020toFebruary28,2023;RunHoldingsisexemptfromcorporateincometaxfromSeptember1,2017toAugust31,2020.FromSeptember1,2020toAugust31,2023,corporateincometaxisleviedinhalfatthelegaltaxrateof25%.
(16)Accordingtothefiscalandtaxationdocument[2011]No.100publishedbytheMinistryofFinanceandtheStateAdministrationofTaxation,fortheVATgeneraltaxpayerswhoselltheirself-developedandproducedsoftwareproducts,theVATshallbeleviedattherateof13%,andthenthepartthattheactualtaxburdenontheirVATexceeds3willbeimplementedwiththepolicyofimmediatewithdrawal.TheCompany’ssubsidiaries,WankaidaTechnologyandElectronicsTechnologyallenjoythispreferentialpolicy.
(17)AccordingtotheregulationsoftheSpecialCatalogueofVATConcessionsforProductsandLaborswithComprehensiveUtilizationofResourcesissuedbytheMinistryofFinanceandtheStateAdministrationofTaxation(FinanceandTaxation[2015]No.78),thewastewatertreatmentbusinessoperatedbyLairunHoldings,asubsidiaryoftheCompany,belongstothethiscatalogue.ThenafterithasbeenleviedtheVATatarateof16%,theactualtaxburdenonthewastewatertreatmentincometaxwillberefundedinaccordancewiththe70%oftheactualtaxburden,andtheactualtaxburdenontherenewablewaterincomeVATwillberefundedimmediatelyat50%.
(18)AccordingtothedocumentCaishui[2013]No.37issuedbytheMinistryofFinanceandtheStateAdministrationofTaxation,thegeneraltaxpayersamongthepilottaxpayersapprovedbythePeople'sBankofChina,theCBRCandtheMinistryofCommercetooperatefinancialleasingbusinessshallprovidetangiblemovablepropertyfinancialleasingservices,andtheVATrefundpolicyshallbeappliedtothepartwheretheactualVATtaxburdenexceeds3%.KonkaLeasing,thesubsidiaryoftheCompany,shallbequalifiedtoenjoyedthetaxconcession.
VI.NotesonMajorItemsinConsolidatedFinancialStatementsoftheCompany
Unlessotherwisenoted,thefollowingannotationproject(includingthemainprojects，annotationofthefinancialstatementoftheCompany),theperiod-beginrefersto1January2019,theperiod-endrefersto31December2019,thisperiodreferstoY2019andthelastperiodreferstotheperiodfrom1January2018to31December2018.Themonetaryunitisrenminbi.
1.MonetaryAssets
| Item | Endingbalance | Beginningbalance |
| Cashonhand | 18,699.99 | 130,105.31 |
| Bankdeposits | 4,493,683,217.23 | 3,434,019,376.41 |
| Othermonetaryassets | 2,105,658,134.39 | 913,994,647.81 |
| Total | 6,599,360,051.61 | 4,348,144,129.53 |
| Ofwhich:totalamountdepositedinoverseas | 378,330,661.32 | 518,005,414.06 |
Notes:?Theendingbalanceofothermonetaryassetswasthedepositsofeachmargindepositnotwithdrawnatanytime.RefertoNoteVI-60Assetswithrestrictedownershiporuserightfordetails.?Asof31December2019,themonetaryassetsdepositedinoverseasbytheCompanywasRMB378,330,661.32(RMB518,005,414.06on31December2018)
2.Held-for-tradingFinancialAssets
| Item | Endingbalance | Beginningbalance |
| Financialassetsatfairvaluethroughprofitorloss | ||
| Including:debtinstrumentinvestment | ||
| Equityinstrumentinvestment | 61,494,666.97 | 61,494,666.97 |
| Other | 5,464,984.92 | |
| Total | 61,494,666.97 | 66,959,651.89 |
3.NotesReceivable
(1)NotesReceivableListedbyCategory
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebill | 2,638,629,011.87 | 2,313,409,006.75 |
| Commercialacceptancebill | 199,412,421.02 | 822,641,321.13 |
| Total | 2,838,041,432.89 | 3,136,050,327.88 |
(2)NotesReceivablePledgedbytheCompanyatthePeriod-end
| Item | Amount |
| Bankacceptancebill | 1,446,285,041.78 |
| Total | 1,446,285,041.78 |
(3)NotesReceivablewhichHadEndorsedbytheCompanyorhadDiscountedandhadnotDueontheBalanceSheetDateatthePeriod-end
| Item | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bankacceptancebill | 1,090,403,349.36 | |
| Commercialacceptancebill | 3,103,650.87 | |
| Total | 1,093,507,000.23 |
(4)NotesTransferredtoAccountsReceivablebecauseDraweroftheNotesFailedtoExecutetheContractorAgreement
| Item | Amountofthenotestransferredtoaccountsreceivableattheperiod-end |
| Bankacceptancebill | 200,000,000.00 |
| Commercialacceptancebill | 744,149,880.08 |
| Total | 944,149,880.08 |
Note:Attheendoftheyear,thebillstransferredtotheaccountsreceivableduetotheissuer'sfailuretoperformweretheoverduebillsofthecompany'sfactoringbusiness.
(5)ListedbyWithdrawalMethodsforBadDebtProvision
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Notesreceivablewithsignificantindividualamountandmakeindependentprovisionforexpectedcreditloss | |||||
| Notesreceivablewithdrawnexpectedcreditlossaccordingtocreditriskscharacteristics | 2,842,347,510.24 | 100.00 | 4,306,077.35 | 0.15 | 2,838,041,432.89 |
| Ofwhich:Bankacceptancebill | 2,638,629,011.87 | 92.83 | 2,638,629,011.87 | ||
| Commercialacceptancebill | 203,718,498.37 | 7.17 | 4,306,077.35 | 2.11 | 199,412,421.02 |
| Notesreceivablewith | |||||
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| insignificantsingleamountforwhichexpectedcreditlossprovisionseparatelyaccrued | |||||
| Total | 2,842,347,510.24 | 100.00 | 4,306,077.35 | 0.15 | 2,838,041,432.89 |
(Continued)
| Category | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Notesreceivablewithsignificantindividualamountandmakeindependentprovisionforexpectedcreditloss | |||||
| Notesreceivablewithdrawnexpectedcreditlossaccordingtocreditriskscharacteristics | 3,136,050,327.88 | 100.00 | 3,136,050,327.88 | ||
| Ofwhich:Bankacceptancebill | 2,313,409,006.75 | 73.77 | 2,313,409,006.75 | ||
| Commercialacceptancebill | 822,641,321.13 | 26.23 | 822,641,321.13 | ||
| Notesreceivablewithinsignificantsingleamountforwhichexpectedcreditlossprovisionseparatelyaccrued | |||||
| Total | 3,136,050,327.88 | 100.00 | 3,136,050,327.88 | ||
(6)Baddebtprovisionfornotesreceivablewithdrawn,collectedorreversedduringtheReportingPeriod
| Category | Beginningbalance | Changedamount | Endingbalance | ||
| Withdrawn | Collectedorreversed | Write-offorverified | |||
| Commercialacceptancebill | — | 4,306,077.35 | 4,306,077.35 | ||
| Total | — | 4,306,077.35 | 4,306,077.35 | ||
4.AccountsReceivable
(1)ListedbyWithdrawalMethodsforExpectedCreditLoss
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Accountsreceivable,forwhichtheindependentprovisionforexpectedcreditlosses | 1,093,505,612.71 | 21.25 | 384,089,197.98 | 35.12 | 709,416,414.73 |
| Accountsreceivable,forwhichtheprovisionforexpectedcreditlosseswaswithdrawnaccordingtogroups | |||||
| Including:aginggroup | 2,816,974,901.34 | 54.75 | 237,184,763.28 | 8.42 | 2,579,790,138.06 |
| Projectpaymentgroup | 1,234,413,460.00 | 23.99 | 107,440,354.92 | 8.70 | 1,126,973,105.08 |
| Subtotalofgroups | 4,051,388,361.34 | 78.75 | 344,625,118.20 | 8.51 | 3,706,763,243.14 |
| Total | 5,144,893,974.05 | 100.00 | 728,714,316.18 | 14.16 | 4,416,179,657.87 |
(Continued)
| Category | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Accountsreceivable,forwhichtheindependentprovisionforexpectedcreditlosses | 1,028,107,560.50 | 21.10 | 138,652,163.88 | 13.49 | 889,455,396.62 |
| Accountsreceivable,forwhichtheprovisionforexpectedcreditlosseswaswithdrawnaccordingtogroups | |||||
| Including:aginggroup | 3,209,444,955.09 | 65.86 | 228,358,351.11 | 7.12 | 2,981,086,603.98 |
| Projectpaymentgroup | 635,426,998.71 | 13.04 | 48,510,094.99 | 7.63 | 586,916,903.72 |
| Subtotalofgroups | 3,844,871,953.80 | 78.90 | 276,868,446.10 | 7.20 | 3,568,003,507.70 |
| Total | 4,872,979,514.30 | 100.00 | 415,520,609.98 | 8.53 | 4,457,458,904.32 |
1)Accountsreceivable,forwhich,theindependentprovisionforexpectedcreditlossismadeattheperiod-end
| Name | Endingbalance |
| Carryingamount | Baddebtprovision | Withdrawalpercentage(%) | Withdrawalreason | |
| ShanghaiHuaxinInternationalGroupCo.,Ltd | 300,027,889.84 | 150,013,944.92 | 50.00 | Debtdefault |
| TewooFinanceCompanyLimited | 200,000,000.00 | 30,000,000.00 | 15.00 | Difficultyinworkingcapitalturnoveranddebtdefault |
| HongtuSantuHigh-techTechnologyCo.,Ltd. | 200,000,000.00 | 32,000,000.00 | 16.00 | Difficultyinworkingcapitalturnover |
| ChinaNuclearEngineeringConstructionGroupCo.,Ltd | 78,900,690.24 | 7,890,069.02 | 10.00 | Difficultyinworkingcapitalturnover |
| No.1EngineeringCompanyLimitedofCCCCFirstHarborEngineeringCompanyLimited | 65,221,300.00 | 9,783,195.00 | 15.00 | Difficultyinworkingcapitalturnover |
| TahoeGroupCo.Ltd | 50,000,000.00 | 5,000,000.00 | 10.00 | Difficultyinworkingcapitalturnover |
| ChinaEnergyElectricFuelCo.,Ltd | 50,000,000.00 | 7,500,000.00 | 15.00 | Difficultyinworkingcapitalturnover |
| EmpireElectronicCorp | 45,410,618.58 | 45,410,618.58 | 100.00 | Difficultyinworkingcapitalturnover |
| H-BUSTERDOBRASILINDUSTRIA | 19,187,169.03 | 19,187,169.03 | 100.00 | Difficulttorecoverforbankruptcy |
| TreeviewBusinessRegistration | 12,454,452.83 | 12,454,452.83 | 100.00 | Difficultyinworkingcapitalturnover |
| Other | 72,303,492.19 | 64,849,748.60 | 89.69 | |
| Total | 1,093,505,612.71 | 384,089,197.98 | 35.12 | — |
2)Withdrawingexpectedcreditlossbygroups①Inthegroup,accountsreceivable,forwhich,theprovisionforexpectedcreditlosswasmadeaccordingtoaginggroups
| Aging | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion(%) | |
| Within1year | 2,543,535,887.25 | 63,213,519.04 | 2.49 |
| 1to2years | 103,511,707.72 | 7,628,812.84 | 7.37 |
| 2to3years | 4,092,462.55 | 906,480.45 | 22.15 |
| Aging | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion(%) | |
| 3to4years | 1,097,971.02 | 699,078.15 | 63.67 |
| Over4years | 164,736,872.80 | 164,736,872.80 | 100.00 |
| Total | 2,816,974,901.34 | 237,184,763.28 | 8.42 |
②Inthegroup,accountsreceivable,forwhich,theprovisionforexpectedcreditlosswasmadeaccordingtoprojectpaymentgroups
| Aging | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion(%) | |
| Within1year | 952,667,901.08 | 47,633,395.05 | 5.00 |
| 1to2years | 159,006,119.43 | 15,900,611.95 | 10.00 |
| 2to3years | 107,643,110.15 | 32,292,934.05 | 30.00 |
| 3to4years | 1,548,202.43 | 774,101.22 | 50.00 |
| Over4years | 13,548,126.91 | 10,839,312.65 | 80.01 |
| Total | 1,234,413,460.00 | 107,440,354.92 | 8.70 |
(2)AccountsReceivableListedbyAging
| Aging | Endingbalance |
| Within1year | 3,807,374,058.89 |
| 1to2years | 949,161,562.29 |
| 2to3years | 164,074,121.16 |
| 3to4years | 4,987,110.88 |
| Over4years | 219,297,120.83 |
| Subtotal | 5,144,893,974.05 |
| Less:baddebtprovision | 728,714,316.18 |
| Total | 4,416,179,657.87 |
3)BaddebtprovisionforaccountsreceivableduringtheReportingPeriodInthisyear,theactualprovisionforbaddebtsamountedtoRMB339,398,520.50,theamountforbaddebtwrite-offswasRMB24,926,223.99,theamountofbaddebtsincreasedbyRMB2,460,005.29duetoexchangeratefluctuations,andtheamountofbaddebtswasreducedbyRMB3,738,595.60duetolossofcontrol.
(4)AccountsreceivableactuallyverifiedduringtheReportingPeriod
| Item | Verifiedamount |
| DSCHOLDINGSLIMITED | 24,823,474.04 |
| Other | 102,749.95 |
| Total | 24,926,223.99 |
(5)Top5oftheEndingBalanceoftheAccountsReceivableCollectedaccordingtotheArrearsPartyThetotalamountoftopfiveofaccountreceivableofendingbalancecollectedbyarrearspartywasRMB1,282,258,307.10,accountingfor24.92%oftotalclosingbalanceofaccountreceivable,therelevantendingbalanceofbaddebtprovisionwithdrawnwasRMB241,125,465.78.
(6)Therewasnoaccountsreceivablederecognizedfortransferoffinancialassets.
(7)Thereisnoamountofassetsandliabilitiesformedduetothetransferofaccountsreceivableandcontinuedinvolvementinthisyear.
5.AccountsReceivableFinancing
| Item | Endingamount | Beginningbalance | ||||
| Cost | Changeinfairvalue | Fairvalueatperiod-end | Cost | Changeinfairvalue | Fairvalueatperiod-end | |
| Notesreceivable | 143,174,271.82 | - | 143,174,271.82 | 193,661,626.27 | - | 193,661,626.27 |
| Total | 143,174,271.82 | - | 143,174,271.82 | 193,661,626.27 | - | 193,661,626.27 |
6.Prepayments
| Aging | Endingamount | Beginningamount | ||||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | |||
| Amount | Proportion(%) | Amount | Proportion(%) | |||
| Within1year | 2,064,712,215.34 | 99.23 | 4,772,745.02 | 1,029,600,745.72 | 98.97 | 57,459.57 |
| 1to2years | 8,325,251.63 | 0.40 | 268,252.73 | 7,171,926.78 | 0.69 | 435,914.85 |
| 2to3years | 4,074,992.31 | 0.20 | - | 543,662.41 | 0.05 | - |
| Over3years | 3,470,588.53 | 0.17 | 2,991,238.20 | 3,034,224.15 | 0.29 | 2,878,017.08 |
| Total | 2,080,583,047.81 | 100.00 | 8,032,235.95 | 1,040,350,559.06 | 100.00 | 3,371,391.50 |
Note:
①Thetotalamountofthetopfiveprepaidaccountsofthecompanyaccordingtotheyear-endbalancecollectedbytheprepaidobjectsis1,484,872,782.94yuan,accountingfor71.37%ofthetotalpre-paidaccountyear-endbalance.
②Theincreaseinthecompany'sprepaymentswasmainlyduetotheincreaseinbusinessscaleandthedeploymentofupstreamhigh-qualitysupplierresources.
③Theamountofprovisionforbaddebtsthisyearwas4,649,595.56yuan;therewasnoamountofbaddebtprovisionwrittenoff;anincreaseof11,248.89yuanduetoexchangeratechanges.
7.OtherReceivables
| Item | Endingbalance | Beginningbalance |
| Interestreceivable | 7,807,400.40 | 4,059,682.40 |
| Dividendsreceivable | 547,848.62 | 547,848.62 |
| Otherreceivables | 1,763,828,117.47 | 403,907,076.96 |
| Total | 1,772,183,366.49 | 408,514,607.98 |
7.1InterestReceivable
| Item | Endingbalance | Beginningbalance |
| Fixtimedeposit | 4,807,630.04 | 3,440,237.63 |
| Entrustedloans | 2,623,723.82 | 48,888.89 |
| Factoringincome | 376,046.54 | 570,555.88 |
| Total | 7,807,400.40 | 4,059,682.40 |
7.2DividendsReceivable
| Item(orinvestees) | Endingbalance | Beginningbalance |
| ChongqingQingjia | 547,848.62 | 547,848.62 |
7.3OtherReceivables
(1)ClassifiedbyAccountNature
| Nature | Endingbalance | Beginningbalance |
| Depositandmargin | 1,307,226,302.83 | 59,252,474.98 |
| Intercoursefundsamongminorityshareholdersinthebusinessconsolidationnotunderthesamecontrolandrelatedparties | 178,968,748.99 | 165,912,605.30 |
| Energy-savingsubsidies | 152,402,680.00 | 152,402,680.00 |
| Disposalofnon-currentassets | 147,256,700.00 | - |
| Other | 376,824,887.60 | 241,757,956.96 |
| Total | 2,162,679,319.42 | 619,325,717.24 |
Note:Theincreaseinotherreceivableswasmainlyduetotheincreaseinthecompany'sprepaiddeposits,securitydepositsanddeposits.
(2)WithdrawalofBadDebtProvision
| Baddebtprovision | PhaseI | PhaseII | PhaseIII | Total |
| Expectedcreditlossesoverthenext12months | Expectedcreditlossesfortheentireduration(nocreditimpairment) | Expectedcreditlossesfortheentireduration(withcreditimpairment) | ||
| Balanceon1January2019 | 5,202,035.68 | 36,709,651.41 | 173,506,953.19 | 215,418,640.28 |
| IntheReporting | — | — | — | — |
| Baddebtprovision | PhaseI | PhaseII | PhaseIII | Total |
| Expectedcreditlossesoverthenext12months | Expectedcreditlossesfortheentireduration(nocreditimpairment) | Expectedcreditlossesfortheentireduration(withcreditimpairment) | ||
| Period,Carryingamountofotherreceivableson1January2019: | ||||
| ——TransferredtothePhaseII | -2,188,502.04 | 2,188,502.04 | - | - |
| ——TransferredtothePhaseIII | - | -761,057.78 | 761,057.78 | - |
| ——TransferredbacktothePhaseII | - | - | - | - |
| ——TransferredbacktothePhaseI | - | |||
| Withdrawalorrecovery | 12,308,029.13 | -12,687,154.36 | 183,904,200.58 | 183,525,075.35 |
| Write-off | - | |||
| Verification | - | |||
| Otherchanges | -92,513.68 | -92,513.68 | ||
| Balanceon31December2019 | 15,229,049.09 | 25,449,941.31 | 358,172,211.55 | 398,851,201.95 |
Note:Thefirststageisthatcreditriskhasnotincreasedsignificantlysinceinitialrecognition.Forotherreceivableswithanagingportfolioandalow-riskportfoliowithin1year,thelossprovisionismeasuredaccordingtotheexpectedcreditlossesinthenext12months.Thesecondstageisthatcreditriskhasincreasedsignificantlysinceinitialrecognitionbutcreditimpairmenthasnotyetoccurred.Forotherreceivableswithanagingportfolioandalow-riskportfoliothatexceed1year,thelossprovisionismeasuredbasedontheexpectedcreditlossesfortheentireduration.Thethirdstageisthecreditimpairmentafterinitialconfirmation.Forotherreceivablesofcreditimpairmentthathaveoccurred,thelossprovisionismeasuredaccordingtothecreditlossesthathaveoccurredthroughouttheduration.
(3)Withdrawingbaddebtprovisionforotherreceivablesaccordingtogroup
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion | Amount | Withdrawalproportion | ||
| Otherreceivables | 1,093,025,247.42 | 50.54 | 358,172,211.55 | 32.77 | 734,853,035.87 |
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion | Amount | Withdrawalproportion | ||
| withsignificantindividualamountandmakeindependentprovisionforexpectedcreditloss | |||||
| Otherreceivableswithdrawnbaddebtprovisionaccordingtocreditriskscharacteristics | |||||
| Aginggroup | 598,266,705.02 | 27.66 | 30,392,763.59 | 5.08 | 567,873,941.43 |
| Low-riskgroup | 471,387,366.98 | 21.80 | 10,286,226.81 | 2.18 | 461,101,140.17 |
| Subtotalofgroups | 1,069,654,072.00 | 49.46 | 40,678,990.40 | 3.80 | 1,028,975,081.60 |
| Total | 2,162,679,319.42 | 100 | 398,851,201.95 | 18.44 | 1,763,828,117.47 |
(Continued)
| Category | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion | Amount | Withdrawalproportion | ||
| Otherreceivableswithsignificantindividualamountandmakeindependentprovisionforexpectedcreditloss | 184,619,007.33 | 29.80 | 173,506,953.19 | 93.98 | 11,112,054.14 |
| Otherreceivableswithdrawnbaddebtprovisionaccordingtocreditriskscharacteristics | |||||
| Aginggroup | 388,967,784.28 | 62.81 | 41,436,970.43 | 10.65 | 347,530,813.85 |
| Low-riskgroup | 45,738,925.63 | 7.39 | 474,716.66 | 1.04 | 45,264,208.97 |
| Subtotalofgroups | 434,706,709.91 | 70.20 | 41,911,687.09 | 9.64 | 392,795,022.82 |
| Total | 619,325,717.24 | 100.00 | 215,418,640.28 | 34.78 | 403,907,076.96 |
(4)Listedbyaging
| Aging | Endingbalance |
| Within1year | 1,830,131,764.01 |
| 1to2years | 100,586,597.78 |
| 2to3years | 4,360,845.69 |
| 3to4years | 5,594,005.22 |
| 4to5years | 80,270,577.43 |
| Over5years | 141,735,529.29 |
| Subtotal | 2,162,679,319.42 |
| Less:baddebtprovision | 398,851,201.95 |
| Total | 1,763,828,117.47 |
(5)BadDebtProvisionforOtherReceivablesTheamountofbaddebtprovisionforthisyearwas196,212,229.72yuan,whichwasmainlyduetotheabnormaloperationofthesupplierofthesubsidiaryKonkaHuanjia,whichcouldnotbedeliverednormallyorrefundedtheprepaiddepositintheshortterm.Withdrawalofexpectedcreditlosses;theamountofbaddebtreservesrecoveredortransferredbackthisyearwasRMB12,687,154.37,whichwasreducedbyRMB97,499.66duetolossofcontrolofthesubsidiaryandincreasedbyRMB4,985.98duetoexchangeratechanges.TherewerenootherreceivableswithactualverificationfortheReportingPeriod.
(6)Top5OtherReceivablesinEndingBalanceCollectedaccordingtotheArrearsParty
| Nameofunits | Nature | Endingbalance | Aging | Proportionofendingbalanceofthetotalotherreceivables | Endingbalanceofbaddebtprovision |
| SuiningDevelopmentZoneAdministrationofFinanceandState-ownedAssets | Cashdeposit | 200,000,000.00 | With1year | 9.25 | 2,000,000.00 |
| Nationalenergy-savingandbenefitingpeople(Energy-savingsubsidies) | Subsidies | 152,402,680.00 | 4to5years,over5years | 7.05 | 152,402,680.00 |
| SuiningGuangliIndustry | Cashdeposit | 150,000,000.00 | With1year | 6.94 | 1,500,000.00 |
| Nameofunits | Nature | Endingbalance | Aging | Proportionofendingbalanceofthetotalotherreceivables | Endingbalanceofbaddebtprovision |
| DevelopmentCo.,Ltd. | |||||
| AdministrativeCommitteeofChuzhouDevelopmentZone | Assetdisposalmoney | 147,256,700.00 | With1year | 6.81 | 3,254,373.07 |
| HaimenRonghuiRealEstateCo.,Ltd. | Equitytransfermoney | 100,000,000.00 | With1year | 4.62 | 2,210,000.00 |
| Total | — | 749,659,380.00 | — | 34.66 | 161,367,053.07 |
(7)TherewerenootherreceivablesderecognizedduetotransferoffinancialassetsduringtheReportingPeriod.
(8)Therewerenoassetsandliabilitiesformedbytransferringotherreceivablesandcontinuingtobeinvolvedinthisperiod.
8.Inventory
(1)CategoryofInventory
| Item | Endingbalance | |||
| Carryingamount | Ofwhich:thecapitalizedamountoftheborrowings | Fallingpricereserves | Carryingvalue | |
| Developmentprojectsoftheproperty: | ||||
| Developmentcost | - | - | - | - |
| Landintendedtodevelop | - | - | - | - |
| Subtotal | - | - | - | - |
| Non-developmentprojectsoftheproperty: | ||||
| Rawmaterials | 1,275,228,321.83 | - | 27,122,457.46 | 1,248,105,864.37 |
| Consignedprocessingmaterials | 3,117,408.28 | - | - | 3,117,408.28 |
| Item | Endingbalance | |||
| Carryingamount | Ofwhich:thecapitalizedamountoftheborrowings | Fallingpricereserves | Carryingvalue | |
| Semi-finishedproduct | 85,821,719.87 | - | 12,822,030.37 | 72,999,689.50 |
| Inventorygoods | 4,187,195,240.20 | - | 206,509,288.73 | 3,980,685,951.47 |
| Finishedbutunsettledassetsfromconstructioncontract | 13,594,131.07 | - | - | 13,594,131.07 |
| Subtotal | 5,564,956,821.25 | - | 246,453,776.56 | 5,318,503,044.69 |
| Total | 5,564,956,821.25 | - | 246,453,776.56 | 5,318,503,044.69 |
(Continued)
| Item | Beginningbalance | |||
| Carryingamount | Ofwhich:thecapitalizedamountoftheborrowings | Fallingpricereserves | Carryingvalue | |
| Developmentprojectsoftheproperty: | ||||
| Developmentcost | 85,167,073.18 | 2,470,133.87 | - | 85,167,073.18 |
| Landintendedtodevelop | 70,855,200.00 | - | - | 70,855,200.00 |
| Subtotal | 156,022,273.18 | 2,470,133.87 | - | 156,022,273.18 |
| Non-developmentprojectsoftheproperty: | ||||
| Rawmaterials | 1,122,370,078.37 | - | 73,754,748.97 | 1,048,615,329.40 |
| Semi-finishedproduct | 89,334,764.13 | - | 10,260,152.74 | 79,074,611.39 |
| Inventorygoods | 4,518,051,460.16 | - | 330,081,328.25 | 4,187,970,131.91 |
| Finishedbutunsettledassetsfromconstructioncontract | 15,922,881.17 | - | - | 15,922,881.17 |
| Subtotal | 5,745,679,183.83 | - | 414,096,229.96 | 5,331,582,953.87 |
| Total | 5,901,701,457.01 | 2,470,133.87 | 414,096,229.96 | 5,487,605,227.05 |
(2)FallingPriceReservesofInventory
| Item | Beginningbalance | Increasedamount | Decreasedamount | Endingbalance | |||
| Withdrawal | other | Write-off | Decreaseoflosingcontrollingright | ||||
| Rawmaterials | 73,754,748.97 | 20,532,333.79 | 66,640,670.20 | 523,955.10 | 27,122,457.46 | ||
| Goodsinprocess | 10,260,152.74 | 6,046,944.03 | 2,763,833.41 | 721,232.99 | 12,822,030.37 | ||
| Inventorygoods | 330,081,328.25 | 170,997,210.09 | 292,215,422.32 | 2,353,827.29 | 206,509,288.73 | ||
| Total | 414,096,229.96 | 197,576,487.91 | 361,619,925.93 | 3,599,015.38 | 246,453,776.56 | ||
(3)WithdrawalProvisionBasisoftheFallingPriceoftheInventoryandtheReasonsoftheReversedorWrite-off
| Item | Specificbasisofwithdrawaloffallingpricereservesofinventory | Reasonsforreverse | Reasonsforwrite-off |
| Rawmaterials | Therealizablenetvaluewaslowerthanthecarryingvalue | — | Soldordisposedinthecurrentperiod |
| Goodsinprocess | Therealizablenetvaluewaslowerthanthecarryingvalue | — | Soldordisposedinthecurrentperiod |
| Inventorygoods | Therealizablenetvaluewaslowerthanthecarryingvalue | — | Soldinthecurrentperiod |
(4)EndingbalanceoftheinventorywhichincludescapitalizedborrowingexpenseswasRMB0.
(5)FinishedbutUnsettledAssetsfromConstructionContract
9.CurrentPortionofNon-currentAssets
| Item | Endingbalance | Beginningbalance |
| Entrustedloansforassociatedenterprises | 60,000,000.00 | |
| Currentportionoflong-termreceivable | 48,087,016.22 | 22,318,208.13 |
| Item | Amount |
| Accumulativelyincurredcosts | 582,772,639.63 |
| Accumulativelyrecognizedgrossmargin | 150,432,679.05 |
| Less:estimatedloss | |
| Settledamounts | 719,611,187.61 |
| FinishedbutUnsettledAssetsfromConstructionContract | 13,594,131.07 |
| Item | Endingbalance | Beginningbalance |
| Total | 108,087,016.22 | 22,318,208.13 |
10.OtherCurrentAssets
| Item | Endingbalance | Beginningbalance |
| Principalandinterestofentrustedloanstojointventures | 1,323,295,500.40 | 1,824,523,111.11 |
| Prepaymentsanddeductibletaxes,andrefundoftaxforexportreceivable | 598,034,887.02 | 794,991,256.00 |
| Temporarydifferenceofinputtax | 134,571,124.94 | |
| Prepaymentoflandpurchase | 75,450,000.00 | |
| Trustinvestment | 18,331,817.52 | 30,000,000.00 |
| Others | 18,979,222.37 | 19,251,774.87 |
| Total | 2,093,212,552.25 | 2,744,216,141.98 |
11.Long-termReceivables
(1)ListofLong-termReceivables
| Item | Endingbalance | Beginningbalance | Intervalofdiscountrate | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | ||
| Financeleasingamount | 77,783,250.17 | - | 77,783,250.17 | 55,893,266.81 | - | 55,893,266.81 | 4.35%-8.78% |
| Ofwhich:unrealizedfinancingincome | 9,635,891.82 | - | 9,635,891.82 | 4,975,887.40 | - | 4,975,887.40 | 4.35%-8.78% |
| Cashdepositsoflong-termreceivables | 28,951,495.81 | - | 28,951,495.81 | 7,801,495.81 | - | 7,801,495.81 | |
| Long-termreceivablesofprojectswithfranchisetights | 351,861,826.09 | - | 351,861,826.09 | 349,416,483.56 | - | 349,416,483.56 | |
| Less:Currentportionoflong-termreceivables(fordetails,seeNoteVI.9) | 48,087,016.22 | - | 48,087,016.22 | 22,318,208.13 | - | 22,318,208.13 | |
| Total | 410,509,555.85 | - | 410,509,555.85 | 390,793,038.05 | - | 390,793,038.05 | — |
(2)ListofProjectswithFranchiseRights
| Item | Type | Projectscale | Franchiseright | Dateofcontract | Operation |
| PPPProjectofwatersupplyandsewageRushanSilverBeach | PPP | 452,802,100.00 | Rightofchargeforsewagedisposal | July2016 | Partialtrialoperation |
(3)ChangesinLong-termReceivablesofProjectswithFranchiseRights
| Item | Initialinvestedamount | Beginningbalance | Increase | Decrease | Endingbalance | Ofwhich:reclassifiedintocurrentportionoflong-termreceivables |
| MergerincreaseintheReportingPeriod | Newlyincreasedinvestmentamount | Interestincome | Principalrecover | Interestrecover | Otherdecrease | |||||
| PPPProjectofwatersupplyandsewageofRushanSilverBeach | 349,416,483.56 | 349,416,483.56 | - | 2,445,342.53 | - | - | - | - | 351,861,826.09 | - |
| Total | 349,416,483.56 | 349,416,483.56 | - | 2,445,342.53 | - | - | - | - | 351,861,826.09 | - |
12.Long-termEquityInvestment
| Investee | Beginningbalance | ChangeintheCurrentPeriod | ||||
| Newinvestment | Investmentreduced | Costmethodtoequitymethod | Gain/lossrecognizedatequitymethod | Adjustmenttoothercomprehensiveincome | ||
| KonkaVenturesDevelopment(Shenzhen)Co.,Ltd. | 2,359,048.04 | - | - | - | -4,906.24 | - |
| NanjingZhihuiguangInformationTechnologyResearchInstituteCo.,Ltd. | 1,605,469.87 | - | - | - | -158,501.46 | - |
| ShenzhenJielunteTechnologyCo.,Ltd. | 83,329,443.68 | - | - | - | 2,335,680.09 | - |
| PanxuIntelligenceCo.,Ltd. | 49,170,159.29 | - | - | - | 2,250,289.28 | -335,456.79 |
| BeijingKonkaJingyuanTechnologyCo.,Ltd. | 759,258.94 | - | - | - | 4,233.90 | - |
| DongfangJiahui(Zhuhai)AssetManagementCo.,Ltd. | 2,757,557.31 | - | - | - | 221,118.96 | - |
| DongfangKonkaNo.1(Zhuhai)PrivateEquityFund(LimitedPartnership) | - | 106,705,750.00 | - | - | 44,507,901.20 | - |
| Investee | Beginningbalance | ChangeintheCurrentPeriod | ||||
| Newinvestment | Investmentreduced | Costmethodtoequitymethod | Gain/lossrecognizedatequitymethod | Adjustmenttoothercomprehensiveincome | ||
| ShenzhenXiaoruiTechnologyCo.,Ltd. | 100,277,552.55 | - | - | - | -3,600,730.72 | - |
| GuoguangRuilian(Shenzhen)NetworkTechnologyCo.,Ltd. | 777,956.58 | - | - | - | -585,633.38 | - |
| PuchuangJiakangTechnologyCo.,Ltd. | - | 400,000.00 | - | - | -400,000.00 | - |
| WeihaiWaterEnvironmentalProtectionTechnologyCo.,Ltd. | 2,440,433.26 | - | - | - | 52,778.70 | - |
| WeihaiYihengEnvironmentalTechnologyCo.,Ltd. | 4,571,472.70 | - | - | - | 96,820.19 | - |
| HuoqiuKangrunKaitianWaterEnvironmentalProtectionCo.,Ltd. | - | 32,434,987.50 | - | - | - | - |
| HuarunEnvironmentalProtectionWaterTreatmentCo.,Ltd. | - | 15,819,210.00 | - | - | 199,660.31 | - |
| BinzhouBeihaiWeiqiaoSolidWasteTreatmentCo.,Ltd. | 59,671,933.63 | - | - | - | 98,461,156.32 | - |
| ShandongBishuiyuanEnvironmentalTechnologyCo.,Ltd. | 24,745,069.48 | - | - | - | 1,429,552.18 | - |
| ShandongKonkaZhijiaElectricalAppliancesCo.,Ltd. | - | 4,000,000.00 | - | - | 52,660.23 | - |
| HenanKonkaZhijiaElectricalAppliancesCo.,Ltd. | - | 1,600,000.00 | - | - | -890,365.18 | - |
| AnhuiKaikaishijieE-commerceCo.,Ltd. | 436,685,064.57 | - | - | - | -11,834,755.90 | - |
| KunshanKonkaElectronicCo.,Ltd. | 200,694,466.80 | - | - | - | -18,280,700.29 | - |
| Investee | Beginningbalance | ChangeintheCurrentPeriod | ||||
| Newinvestment | Investmentreduced | Costmethodtoequitymethod | Gain/lossrecognizedatequitymethod | Adjustmenttoothercomprehensiveincome | ||
| KunshanKangshengInvestmentDevelopmentCo.,Ltd. | 269,673,264.00 | - | - | - | - | - |
| ChutianlongCo.,Ltd. | 624,845,604.93 | - | - | - | 22,304,031.77 | - |
| HeilongjiangLongkangZhijiaTechnologyCo.,Ltd. | 6,400,480.52 | - | - | - | -1,550,082.49 | - |
| KonkaGreen,KonkaTechnology | 78,409,903.14 | - | - | - | -1,067,483.78 | - |
| ShaanxiSiluYunqiSmartTechnologyCo.,Ltd. | 4,522,509.33 | 12,350,000.00 | - | - | 329,806.10 | - |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | 26,656,667.58 | - | - | - | -13,996,444.85 | - |
| ShenzhenZhongbingKonkaTechnologyCo.,Ltd. | 10,617,873.79 | - | - | - | -3,344,645.38 | - |
| ShenzhenKonkaSmartElectricalApplianceTechnologyCo.,Ltd. | 2,287,478.52 | - | - | - | 594,671.20 | - |
| ZhuhaiJinsuPlasticCo.,Ltd. | 11,040,246.82 | - | - | - | 1,196,157.32 | - |
| ShenzhenQiaochenghuiNetworkTechnologyCo.,Ltd. | 3,592,514.06 | - | 3,592,514.06 | - | - | - |
| ShenzhenFushengNewMaterialCo.,Ltd. | 79,859,338.44 | - | - | - | -1,038,480.46 | - |
| ShenzhenYaodeTechnologyCo.,Ltd. | 222,210,835.18 | - | - | - | 7,529,410.29 | - |
| WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | 252,270,255.47 | - | - | - | 23,307,076.74 | - |
| Investee | Beginningbalance | ChangeintheCurrentPeriod | ||||
| Newinvestment | Investmentreduced | Costmethodtoequitymethod | Gain/lossrecognizedatequitymethod | Adjustmenttoothercomprehensiveincome | ||
| ShenzhenKonkaYishijieCommercialDisplayCo.,Ltd. | - | - | - | 86,760,000.00 | 40,425.67 | - |
| ChuzhouKonkaTechnologyIndustryDevelopmentCo.,Ltd. | - | - | - | 61,029,500.00 | - | - |
| ChuzhouKangjinHealthcareIndustryDevelopmentCo.,Ltd. | - | - | - | 117,460,056.00 | - | - |
| HaimenKangjianTechnologyIndustrialParkOperationandManagementCo.,Ltd. | - | - | - | 131,273,550.00 | - | - |
| ShenzhenKangyueIndustrialCo.,Ltd. | - | - | - | 33,856,942.00 | - | - |
| FeideTechnology(Shenzhen)Co.,Ltd. | 4,868,798.36 | 12,000,000.00 | - | - | -2,554,176.68 | - |
| ChongqingQingjiaElectronicCo.,Ltd. | 19,750,739.24 | - | - | - | -582,038.16 | - |
| NanjingKangxingTechnologyIndustrialParkOperationandManagementCo.,Ltd. | 50,929,429.45 | - | 17,000,000.00 | - | -1,623,757.77 | - |
| Total | 2,637,780,825.53 | 185,309,947.50 | 20,592,514.06 | 430,380,048.00 | 143,400,727.72 | -335,456.79 |
(Continued)
| Investee | ChangeintheCurrentPeriod | Endingbalance(carryingamount) | Balanceofassetimpairmentallowance | |||
| Otherequitychanges | Cashdividendorprofitdistributiondeclared | Impairmentallowance | Other | |||
| KonkaVenturesDevelopment(Shenzhen)Co.,Ltd. | - | - | - | - | 2,354,141.80 | - |
| NanjingZhihuiguangInformationTechnologyResearchInstituteCo.,Ltd. | - | - | - | - | 1,446,968.41 | - |
| ShenzhenJielunteTechnologyCo.,Ltd. | - | - | - | - | 85,665,123.77 | - |
| PanxuIntelligenceCo.,Ltd. | - | - | - | - | 51,084,991.78 | - |
| BeijingKonkaJingyuanTechnologyCo.,Ltd. | - | - | - | - | 763,492.84 | - |
| DongfangJiahui(Zhuhai)AssetManagementCo.,Ltd. | - | - | - | - | 2,978,676.27 | - |
| DongfangKonkaNo.1(Zhuhai)PrivateEquityFund(LimitedPartnership) | - | - | - | 158,810,750.31 | 310,024,401.51 | - |
| ShenzhenXiaoruiTechnologyCo.,Ltd. | - | - | 8,676,821.83 | - | 88,000,000.00 | 8,676,821.83 |
| GuoguangRuilian(Shenzhen)NetworkTechnologyCo.,Ltd. | - | - | - | - | 192,323.20 | - |
| PuchuangJiakangTechnologyCo.,Ltd. | - | - | - | - | - | - |
| WeihaiWaterEnvironmentalProtectionTechnologyCo.,Ltd. | - | - | - | - | 2,493,211.96 | - |
| WeihaiYihengEnvironmentalTechnologyCo.,Ltd. | - | - | - | - | 4,668,292.89 | - |
| HuoqiuKangrunKaitianWaterEnvironmentalProtectionCo.,Ltd. | - | - | - | - | 32,434,987.50 | - |
| HuarunEnvironmentalProtectionWaterTreatmentCo.,Ltd. | - | - | - | - | 16,018,870.31 | - |
| BinzhouBeihaiWeiqiaoSolidWasteTreatmentCo.,Ltd. | - | 24,500,000.00 | - | - | 133,633,089.95 | - |
| ShandongBishuiyuanEnvironmentalTechnologyCo.,Ltd. | - | - | - | - | 26,174,621.66 | - |
| ShandongKonkaZhijiaElectricalAppliancesCo.,Ltd. | - | - | - | - | 4,052,660.23 | - |
| HenanKonkaZhijiaElectricalAppliancesCo.,Ltd. | - | - | - | - | 709,634.82 | - |
| AnhuiKaikaishijieE-commerceCo.,Ltd. | - | - | - | - | 424,850,308.67 | - |
| KunshanKonkaElectronicCo.,Ltd. | - | - | - | - | 182,413,766.51 | - |
| KunshanKangshengInvestmentDevelopmentCo.,Ltd. | - | - | - | - | 269,673,264.00 | - |
| ChutianlongCo.,Ltd. | - | 11,088,000.00 | - | - | 636,061,636.70 | - |
| HeilongjiangLongkangZhijiaTechnologyCo.,Ltd. | - | - | 2,470,398.03 | - | 2,380,000.00 | 2,470,398.03 |
| KonkaGreen,KonkaTechnology | - | - | - | - | 77,342,419.36 | - |
| ShaanxiSiluYunqiSmartTechnologyCo.,Ltd. | - | - | - | - | 17,202,315.43 | - |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | - | - | 12,660,222.73 | - | - | 12,660,222.73 |
| ShenzhenZhongbingKonkaTechnologyCo.,Ltd. | - | - | - | - | 7,273,228.41 | - |
| ShenzhenKonkaSmartElectricalApplianceTechnologyCo.,Ltd. | - | - | - | - | 2,882,149.72 | - |
| ZhuhaiJinsuPlasticCo.,Ltd. | - | 2,070,000.00 | - | - | 10,166,404.14 | - |
| ShenzhenQiaochenghuiNetworkTechnologyCo.,Ltd. | - | - | - | - | - | - |
| ShenzhenFushengNewMaterialCo.,Ltd. | - | - | 5,220,857.98 | - | 78,820,857.98 | - |
| ShenzhenYaodeTechnologyCo.,Ltd. | - | - | - | - | 229,740,245.47 | - |
| WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | - | - | - | - | 275,577,332.21 | - |
| ShenzhenKonkaYishijieCommercialDisplayCo.,Ltd. | - | 2,526,830.75 | - | - | 84,273,594.93 | - |
| ChuzhouKonkaTechnologyIndustryDevelopmentCo.,Ltd. | - | - | - | - | 61,029,500.00 | - |
| ChuzhouKangjinHealthcareIndustryDevelopmentCo.,Ltd. | - | - | - | - | 117,460,056.00 | - |
| HaimenKangjianTechnologyIndustrialParkOperationandManagementCo.,Ltd. | - | - | - | - | 131,273,550.00 | - |
| ShenzhenKangyueIndustrialCo.,Ltd. | - | - | - | - | 33,856,942.00 | - |
| FeideTechnology(Shenzhen)Co.,Ltd. | - | - | - | - | 14,314,621.68 | - |
| ChongqingQingjiaElectronicCo.,Ltd. | - | - | - | - | 19,168,701.08 | - |
| NanjingKangxingTechnologyIndustrialParkOperationandManagementCo.,Ltd. | - | - | - | - | 32,305,671.68 | - |
| Total | - | 40,184,830.75 | 29,028,300.57 | 158,810,750.31 | 3,465,541,196.89 | 29,028,300.57 |
13.OtherEquityInstrumentInvestment
(1)Investmentinnon-tradingequityinstruments
| Item | Endingbalance | Beginningbalance |
| ShenzhenTianyilianScience&TechnologyCo.,Ltd. | - | 4,800,000.00 |
| ShenzhenAdoptNetworkCo.,Ltd. | - | - |
| BeijingKonkaTechnologyCo.,Ltd. | 1,200,000.00 | 4,700,000.00 |
| AVO | 6,000,000.00 | - |
| ShaoyangHaishangEcologicalAgriculturalTechnologyCo.,Ltd. | 1,501,956.00 | - |
| FeihongElectronicsCo.,Ltd. | - | - |
| ZAEFI | - | - |
| ShenzhenChuangceInvestmentDevelopmentCo.,Ltd. | - | - |
| ShanlianInformationTechnologyEngineeringCenter | 1,860,809.20 | 3,360,809.20 |
| ShenzhenCIUScience&TechnologyCo.,Ltd. | 953,000.00 | 953,000.00 |
| ShenzhenDigitalTVNationalEngineeringLaboratoryCo.,Ltd. | 7,726,405.16 | 7,726,405.16 |
| ShanghaiNationalEngineeringResearchCenterofDigitalTVCo.,Ltd. | 2,400,000.00 | 2,400,000.00 |
| Total | 21,642,170.36 | 23,940,214.36 |
(2)Non-transactionalEquityInstrumentInvestment
| Item | Dividendincomerecognizedinthecurrentperiod | Accumulativegain | Accumulativeloss | Amountofretainedearningstransferredfromothercomprehensiveincome | Reasonforbeingdesignatedtobemeasuredatfairvalueofwhichrecordedinothercomprehensiveincome | Reasonforretainedearningstransferredfromothercomprehensiveincome |
| ShenzhenTianyilianScience&TechnologyCo.,Ltd. | - | - | 4,800,000.00 | - | Long-termholdingbasedonstrategicpurpose | - |
| ShenzhenAdoptNetworkCo.,Ltd. | - | - | 5,750,000.00 | - | Long-termholdingbasedonstrategicpurpose | - |
| BeijingKonkaTechnologyCo.,Ltd. | - | - | 3,500,000.00 | - | Long-termholdingbasedonstrategicpurpose | - |
| AVO | - | - | - | - | Long-termholdingbasedonstrategicpurpose | - |
| ShaoyangHaishangEcologicalAgriculturalTechnologyCo.,Ltd. | - | - | - | - | Long-termholdingbasedonstrategicpurpose | - |
| Feihong | - | - | 1,300,000.00 | - | Long-termholdingbasedonstrategicpurpose | - |
| Item | Dividendincomerecognizedinthecurrentperiod | Accumulativegain | Accumulativeloss | Amountofretainedearningstransferredfromothercomprehensiveincome | Reasonforbeingdesignatedtobemeasuredatfairvalueofwhichrecordedinothercomprehensiveincome | Reasonforretainedearningstransferredfromothercomprehensiveincome |
| ElectronicsCo.,Ltd. | ||||||
| ZAEFI | - | - | 100,000.00 | - | Long-termholdingbasedonstrategicpurpose | - |
| ShenzhenChuangceInvestmentDevelopmentCo.,Ltd. | - | - | 485,000.00 | - | Long-termholdingbasedonstrategicpurpose | - |
| ShanlianInformationTechnologyEngineeringCenter | - | - | 3,139,190.80 | - | Long-termholdingbasedonstrategicpurpose | - |
| ShenzhenCIUScience&TechnologyCo.,Ltd. | - | - | 200,000.00 | - | Long-termholdingbasedonstrategicpurpose | - |
| ShenzhenDigitalTVNationalEngineeringLaboratoryCo.,Ltd. | - | - | 1,273,594.84 | - | Long-termholdingbasedonstrategicpurpose | - |
| ShanghaiNationalEngineeringResearchCenterofDigitalTVCo.,Ltd. | - | - | - | - | Long-termholdingbasedonstrategicpurpose | - |
| Total | - | - | 20,547,785.64 | - | - | - |
14.OtherNon-currentFinancialAssets
| Item | Endingbalance | Beginningbalance |
| Equityinvestments | 540,230,000.00 | 450,230,000.00 |
| Investmentsindebtobligations | 1,212,891,727.83 | 98,000,000.00 |
| Total | 1,753,121,727.83 | 548,230,000.00 |
Note:Thedebtinvestmentattheendoftheyearwasmainlythecompany’sdebtfundof1,049,891,727.83yuaninvestedinChuzhouHuikeIntelligentHomeAppliancesIndustryInvestmentPartnership(LimitedPartnership).
15.InvestmentProperty
| Item | Housesandbuildings |
| I.Originalcarryingvalue |
| Item | Housesandbuildings |
| 1.Beginningbalance | 249,923,047.75 |
| 2.Increasedamountoftheperiod | 197,503,199.41 |
| 3.Decreasedamountoftheperiod | 13,016.37 |
| 4.Endingbalance | 447,413,230.79 |
| II.Theaccumulativedepreciationandaccumulativeamortization | |
| 1.Beginningbalance | 39,098,692.03 |
| 2.Increasedamountoftheperiod | 8,117,164.69 |
| 3.Decreasedamountoftheperiod | - |
| 4.Endingbalance | 47,215,856.72 |
| III.Impairmentprovision | |
| 1.Beginningbalance | - |
| 2.Increasedamountoftheperiod | - |
| 3.Decreasedamountoftheperiod | - |
| 4.Endingbalance | - |
| IV.Carryingvalue | - |
| 1.Endingcarryingvalue | 400,197,374.07 |
| 2.Beginningcarryingvalue | 210,824,355.72 |
Note:TheincreaseininvestmentrealestateinthisperiodisthefirstphaseofKonkaBrightTechnologyCenter.
16.FixedAssets
| Item | Endingcarryingvalue | Beginningcarryingvalue |
| Fixedassets | 2,561,254,191.55 | 2,410,226,495.81 |
| Disposaloffixedassets | - | - |
| Total | 2,561,254,191.55 | 2,410,226,495.81 |
(1)ListofFixedAssets
| Item | Housesandbuildings | Machineryequipment | Electronicequipment | Transportationequipment | Otherequipment | Total |
| I.Originalcarryingvalue | ||||||
| 1.Beginningbalance | 2,160,081,403.23 | 1,847,565,534.04 | 172,793,417.25 | 58,660,252.15 | 198,441,334.30 | 4,437,541,940.97 |
| 2.Increasedamountoftheperiod | 88,242,082.07 | 508,848,382.57 | 20,203,321.30 | 6,584,588.25 | 56,807,949.38 | 680,686,323.57 |
| (1)Purchase | 43,869,311.81 | 81,613,727.17 | 18,749,734.78 | 6,584,588.25 | 55,076,899.43 | 205,894,261.44 |
| (2)Transferofconstructioninprogress | 44,372,770.26 | 427,234,655.40 | 1,453,586.52 | - | 1,731,049.95 | 474,792,062.13 |
| (3)Increasefor | - | - | - | - | - | - |
| Item | Housesandbuildings | Machineryequipment | Electronicequipment | Transportationequipment | Otherequipment | Total |
| businesscombination | ||||||
| 3.Decreasedamountoftheperiod | 213,105,378.31 | 339,265,571.20 | 8,932,082.70 | 7,180,972.77 | 13,635,422.35 | 582,119,427.33 |
| (1)DisposalorScrap | 213,105,378.31 | 151,570,971.76 | 8,812,826.05 | 6,829,654.19 | 11,760,674.01 | 392,079,504.32 |
| (2)Decreaseforlossofcontrollingright | - | 5,273,753.80 | 119,256.65 | 351,318.58 | 1,874,748.34 | 7,619,077.37 |
| (3)Decreaseforotherreasons | - | 182,420,845.64 | - | - | - | 182,420,845.64 |
| 4.Endingbalance | 2,035,218,106.99 | 2,017,148,345.41 | 184,064,655.85 | 58,063,867.63 | 241,613,861.33 | 4,536,108,837.21 |
| II.Accumulativedepreciation | ||||||
| 1.Beginningbalance | 634,795,930.27 | 1,001,329,043.28 | 135,908,033.93 | 40,186,544.94 | 141,731,721.09 | 1,953,951,273.51 |
| 2.Increasedamountoftheperiod | 67,969,604.47 | 149,634,296.46 | 11,145,490.75 | 5,133,774.40 | 22,774,219.28 | 256,657,385.35 |
| (1)Withdrawal | 67,969,604.47 | 149,634,296.46 | 11,145,490.75 | 5,133,774.40 | 22,774,219.28 | 256,657,385.35 |
| (2)Increaseforbusinessmerger | - | - | - | - | - | - |
| Item | Housesandbuildings | Machineryequipment | Electronicequipment | Transportationequipment | Otherequipment | Total |
| 3.Decreasedamountoftheperiod | 68,920,961.75 | 211,807,236.79 | 7,073,727.55 | 5,445,916.17 | 11,119,928.64 | 304,367,770.90 |
| (1)DisposalorScrap | 68,920,961.75 | 117,776,230.87 | 6,989,970.96 | 5,430,106.83 | 10,086,249.00 | 209,203,519.41 |
| (2)Decreaseforlossofcontrollingright | - | 2,423,669.35 | 83,756.59 | 15,809.34 | 1,033,679.64 | 3,556,914.92 |
| (3)Decreaseforotherreasons | - | 91,607,336.57 | - | - | - | 91,607,336.57 |
| 4.Endingbalance | 633,844,572.99 | 939,156,102.95 | 139,979,797.13 | 39,874,403.17 | 153,386,011.73 | 1,906,240,887.96 |
| III.Depreciationreserves | ||||||
| 1.Beginningbalance | 1,247,805.91 | 68,610,152.04 | 1,215,451.65 | 820,215.24 | 1,470,546.81 | 73,364,171.65 |
| 2.Increasedamountoftheperiod | - | - | - | - | - | - |
| (1)Withdrawal | - | - | - | - | - | - |
| (2)Increaseforbusinessmerger | - | - | - | - | - | - |
| 3.Decreasedamount | - | 4,586,246.47 | 58,874.37 | - | 105,293.11 | 4,750,413.95 |
| Item | Housesandbuildings | Machineryequipment | Electronicequipment | Transportationequipment | Otherequipment | Total |
| oftheperiod | ||||||
| (1)DisposalorScrap | - | 4,586,246.47 | 58,874.37 | - | 105,293.11 | 4,750,413.95 |
| (2)Decreaseoflossofcontrollingright | ||||||
| 4.Endingbalance | 1,247,805.91 | 64,023,905.57 | 1,156,577.28 | 820,215.24 | 1,365,253.70 | 68,613,757.70 |
| IV.Carryingvalue | ||||||
| 1.Endingcarryingvalue | 1,400,125,728.09 | 1,013,968,336.89 | 42,928,281.44 | 17,369,249.22 | 86,862,595.90 | 2,561,254,191.55 |
| 2.Beginningcarryingvalue | 1,524,037,667.05 | 777,626,338.72 | 35,669,931.67 | 17,653,491.97 | 55,239,066.40 | 2,410,226,495.81 |
Note:OtherdecreaseinfixedassetsduringtheReportingPeriodreferredtothetransferfromfixedassetstoconstructioninprogressmainlyduetothetechnologicalreformofproductionlineoftheCompany’ssubsidiaryXinfengMicrocrystalline.
(2)ListofTemporarilyIdleFixedAssets
| Item | Originalcarryingvalue | Accumulativedepreciation | Impairmentprovision | Carryingvalue |
| Mechanicalequipment | 25,555,607.08 | 10,551,245.11 | 7,520,691.10 | 7,483,670.87 |
| Electronicequipment | 1,172,847.32 | 1,051,643.98 | 121,203.34 | |
| Otherequipment | 1,140,919.39 | 939,150.69 | 112,105.43 | 89,663.27 |
| Total | 27,869,373.79 | 12,542,039.78 | 7,632,796.53 | 7,694,537.48 |
(3)FixedAssetsLeasedinfromFinancingLease
| Item | Originalcarryingvalue | Accumulativedepreciation | Impairmentprovision | Carryingvalue |
| Housesandbuildings | 4,442,018.00 | 2,941,383.95 | 1,500,634.05 | |
| Mechanicalequipment | 625,001,021.48 | 335,137,305.54 | 289,863,715.94 | |
| Transportationequipment | 10,138,161.44 | 8,112,013.20 | 2,026,148.24 | |
| Electronicequipment | 47,763,794.72 | 39,021,990.91 | 8,741,803.81 | |
| Otherequipment | 45,068,146.82 | 31,603,334.31 | 13,464,812.51 | |
| Total | 732,413,142.46 | 416,816,027.91 | 315,597,114.55 |
(4)FixedAssetsLeasedoutfromOperationLease
| Item | Endingcarryingvalue |
| Mechanicalequipment | 9,731,084.22 |
| Total | 9,731,084.22 |
(5)DetailsofFixedAssetsFailedtoAccomplishCertificationofProperty
| Item | Originalcarryingvalue | Accumulativedepreciation | Impairmentprovision | Netcarryingvalue | Reason |
| YikangBuildingproperty | 76,610,752.33 | 35,181,074.70 | - | 41,429,677.63 | Historicalreasons |
| JingyuanBuildingproperty | 20,018,497.00 | 9,094,934.74 | - | 10,923,562.26 | Historicalreasons |
| 26-1Longzhimeng,PangjiangStreetPropertyinDadongDistrict,Shenyang | 10,189,892.23 | 1,325,119.48 | - | 8,864,772.75 | Theproblemsofdevelopers |
| HuaguoyuanProjectinHuaguoyuanRoad,Guiyang | 3,628,629.00 | 292,558.24 | - | 3,336,070.76 | Underprocessing |
| PurificationtankforliquidwasteofXingDaHongYe | 2,653,000.00 | 1,362,978.75 | - | 1,290,021.25 | Underprocessing |
(6)FixedAssetswithRestrictedOwnershiporUseRight
| Item | Endingcarryingvalue | Reason |
| PropertyandmachineryequipmentofJiangxiKonka | 158,053,900.84 | Financeleasemortgage/mortgageloans |
| RealestatesuchasworkshopsofFrestecHouseholdAppliancesandFrestecRefrigeration | 142,619,430.72 | Mortgageloans |
| MachineryequipmentofXinfengMicrocrystalline | 85,640,430.38 | Financeleasemortgage |
| WorkshopsandlandsofXingDaHongYe | 54,146,085.60 | Mortgageloans |
| MachineryequipmentofNanoCrystallizedGlass | 49,500,342.18 | Financeleasemortgage |
| FixedassetsofXingDaHongYe | 41,411,646.57 | Financeleasemortgage |
| RealestatesuchasworkshopsofBoluoKonkaPrecision | 10,159,362.39 | Mortgageloans |
| Total | 541,531,198.68 | - |
17.ConstructioninProgress
| Item | Endingbalance | Beginningbalance |
| ConstructioninProgress | 4,291,544,368.52 | 2,176,871,530.80 |
| Total | 4,291,544,368.52 | 2,176,871,530.80 |
(1)ListofConstructioninProgress
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Impairmentprovision | Carryingvalue | Carryingamount | Impairmentprovision | Carryingvalue | |
| ComprehensiveimprovementengineeringprojectofdrainagebasinsinthecityofDonggang | 715,838,346.63 | 715,838,346.63 | 451,789,427.70 | 451,789,427.70 | ||
| PPPProjectofFunanSewageTreatment | 592,295,248.19 | 592,295,248.19 | ||||
| WatersupplyengineeringprojectinMazongshanTown,SubeiMongolAutonomousCounty,GansuProvince | 571,112,712.15 | 571,112,712.15 | 552,055,516.50 | 552,055,516.50 | ||
| PPPProjectofLushanShaheEcologicalRehabilitationandImprovement(PhaseI) | 511,792,398.90 | 511,792,398.90 | ||||
| IntegratedPPPProjectofHuangpiSewageTreatment | 385,214,225.65 | 385,214,225.65 | ||||
| ThesecondlineofJiangxiNanoCrystallizedGlass | 336,485,492.44 | 336,485,492.44 | 303,533,244.21 | 303,533,244.21 | ||
| CentralCityComprehensiveacceleratedprogramsinEconomicandTechnologicalDevelopmentZoneofBinhai,Weifang | 329,745,585.38 | 329,745,585.38 | 261,826,586.30 | 261,826,586.30 | ||
| AnkangSmartPlant | 143,320,357.80 | 143,320,357.80 | ||||
| TongchuanProject | 99,720,949.28 | 99,720,949.28 | ||||
| ThesecondsewageplantofLaizhou | 90,971,785.34 | 90,971,785.34 | ||||
| YibinKonkaHi-TechIndustrialPark | 86,183,539.65 | 86,183,539.65 | ||||
| DayiProject | 79,258,722.98 | 79,258,722.98 | 400,000.00 | 400,000.00 | ||
| GuangmingProject | 39,753,607.36 | 39,753,607.36 | 153,577,240.57 | 153,577,240.57 | ||
| ThesecondlineofXinfengMicrocrystallineJade | 39,066,165.62 | 39,066,165.62 | 365,069,872.84 | 365,069,872.84 | ||
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Impairmentprovision | Carryingvalue | Carryingamount | Impairmentprovision | Carryingvalue | |
| Othersmallprojects | 270,785,231.15 | 270,785,231.15 | 88,619,642.68 | 88,619,642.68 | ||
| Total | 4,291,544,368.52 | 4,291,544,368.52 | 2,176,871,530.80 | 2,176,871,530.80 | ||
(2)ChangesofSignificantConstructioninProgress
| Nameofitem | Estimatednumber | Beginningbalance | IncreaseAmount | Decreaseamount | Endingbalance | |
| Transferredtolong-termassets | Otherdecrease | |||||
| ComprehensiveimprovementengineeringprojectofdrainagebasinsinthecityofDonggang | RMB1,299million | 451,789,427.70 | 264,048,918.93 | 715,838,346.63 | ||
| PPPProjectofFunanSewageTreatment | RMB972million | 592,295,248.19 | 592,295,248.19 | |||
| WatersupplyengineeringprojectinMazongshanTown,SubeiMongolAutonomousCounty,GansuProvince | RMB970million | 552,055,516.50 | 19,057,195.65 | 571,112,712.15 | ||
| PPPProjectofLushanShaheEcologicalRehabilitationandImprovement(PhaseI) | RMB1,268million | 511,792,398.90 | 511,792,398.90 | |||
| IntegratedPPPProjectofHuangpiSewageTreatment | RMB738million | 385,214,225.65 | 385,214,225.65 | |||
| ThesecondlineofJiangxiNanoCrystallizedGlass | RMB434million | 303,533,244.21 | 92,535,341.03 | 59,583,092.80 | 336,485,492.44 | |
| CentralCityComprehensiveacceleratedprogramsinEconomicandTechnologicalDevelopmentZoneofBinhai,Weifang | RMB2,850million | 261,826,586.30 | 67,918,999.08 | 329,745,585.38 | ||
| AnkangSmartPlant | RMB697million | 143,320,357.80 | 143,320,357.80 | |||
| TongchuanProject | RMB393million | 99,720,949.28 | 99,720,949.28 | |||
| ThesecondsewageplantofLaizhou | RMB256million | 90,971,785.34 | 90,971,785.34 | |||
| Nameofitem | Estimatednumber | Beginningbalance | IncreaseAmount | Decreaseamount | Endingbalance | |
| Transferredtolong-termassets | Otherdecrease | |||||
| YibinKonkaHi-TechIndustrialPark | RMB350million | 4,805,746.86 | 81,377,792.79 | 86,183,539.65 | ||
| DayiProject | RMB392million | 400,000.00 | 78,858,722.98 | 79,258,722.98 | ||
| GuangmingProject | RMB241million | 153,577,240.57 | 83,827,690.00 | 197,651,323.21 | 39,753,607.36 | |
| ThesecondlineofXinfengMicrocrystallineJade | RMB381million | 365,069,872.84 | 6,033,682.90 | 332,037,390.12 | 39,066,165.62 | |
| Othersmallprojects | 83,813,895.82 | 278,839,089.50 | 91,578,424.96 | 289,329.21 | 270,785,231.15 | |
| Total | 2,176,871,530.80 | 2,795,812,398.02 | 680,850,231.09 | 289,329.21 | 4,291,544,368.52 | |
(Continued)
| Nameofitem | Estimatednumber | Proportionestimatedoftheprojectaccumulativeinput(%) | Projectprogress | Accumulativeamountofcapitalizedinterests | Ofwhich:theamountofthecapitalizedinterestsoftheperiod | Capitalizationrateoftheinterestsoftheperiod(%) | Capitalresources |
| ComprehensiveimprovementengineeringprojectofdrainagebasinsinthecityofDonggang | RMB1,299million | 55.1 | 55.1 | 32,649,995.61 | 32,649,995.61 | 12.37 | Self-ownedfundandbankfinancing |
| PPPProjectofFunanSewageTreatment | RMB972million | 60.92 | 60.92 | 3,923,218.75 | 3,923,218.75 | 0.66 | Self-ownedfundandbankfinancing |
| WatersupplyengineeringprojectinMazongshanTown,SubeiMongolAutonomousCounty,GansuProvince | RMB970million | 58.87 | 58.87 | Self-ownedfund |
| Nameofitem | Estimatednumber | Proportionestimatedoftheprojectaccumulativeinput(%) | Projectprogress | Accumulativeamountofcapitalizedinterests | Ofwhich:theamountofthecapitalizedinterestsoftheperiod | Capitalizationrateoftheinterestsoftheperiod(%) | Capitalresources |
| PPPProjectofLushanShaheEcologicalRehabilitationandImprovement(PhaseI) | RMB1,268million | 40.37 | 40.37 | Self-ownedfund | |||
| IntegratedPPPProjectofHuangpiSewageTreatment | RMB738million | 52.17 | 52.17 | Self-ownedfund | |||
| ThesecondlineofJiangxiNanoCrystallizedGlass | RMB434million | 77.53 | 77.53 | 32,249,994.16 | 5,403,293.13 | 5.84 | Self-ownedfundandfinanceleasing |
| CentralCityComprehensiveacceleratedprogramsinEconomicandTechnologicalDevelopmentZoneofBinhai,Weifang | RMB2,850million | 11.39 | 11.39 | 5,685,669.94 | 5,685,669.94 | 8.37 | Self-ownedfundandbankfinancing |
| AnkangSmartPlant | RMB697million | 20.56 | 20.56 | - | - | - | Self-ownedfund |
| TongchuanProject | RMB393million | 25.37 | 25.37 | - | - | - | Self-ownedfund |
| ThesecondsewageplantofLaizhou | RMB256million | 35.49 | 35.49 | - | - | - | Self-ownedfund |
| YibinKonkaHi-TechIndustrialPark | RMB350million | 24.62 | 24.62 | - | - | - | Self-ownedfund |
| DayiProject | RMB392million | 20.21 | 20.21 | - | - | - | Self-ownedfund |
| Nameofitem | Estimatednumber | Proportionestimatedoftheprojectaccumulativeinput(%) | Projectprogress | Accumulativeamountofcapitalizedinterests | Ofwhich:theamountofthecapitalizedinterestsoftheperiod | Capitalizationrateoftheinterestsoftheperiod(%) | Capitalresources |
| GuangmingProject | RMB241million | 16.5 | 16.5 | - | - | - | Self-ownedfundandprojectloans |
| ThesecondlineofXinfengMicrocrystallineJade | RMB381million | 10.25 | 10.25 | 37,940,324.62 | 15,171,886.64 | 38.84 | Self-ownedfund,mortgageloansandfinanceleasing |
| Othersmallprojects | - | - | - | 39,229,802.86 | 39,229,802.86 | - | - |
| Total | - | - | - | 151,679,005.94 | 102,063,866.93 | - |
Note:ForthefinancingchannelandamountofDonggangCityInlandRiverBasinComprehensiveImprovementProject,FunanCountyGlobalSewageTreatmentProjectPPPProject,WeifangBinhaiEconomicandTechnologicalDevelopmentZoneCentralCityComprehensiveUpgradeProject,andGuangmingProject,pleaseseeNoteVI.32theLong-termloanfinancing.WithXinfengMicrocrystallineJadeSecond-lineProject,pleaserefertoNoteVI,23Short-TermLoan.
18.IntangibleAssets
(1)Listofintangibleassets
| Item | Landuseright | Intellectualproperty | Total | ||||
| Trademarkright | Patentandknow-how | Franchiserights | Righttousesoftwareandothers | Subtotal | |||
| Item | Landuseright | Intellectualproperty | Total | ||||
| Trademarkright | Patentandknow-how | Franchiserights | Righttousesoftwareandothers | Subtotal | |||
| I.Originalcarryingvalue | |||||||
| 1.Beginningbalance | 548,540,757.52 | 47,490,161.70 | 87,491,851.74 | 111,050,625.01 | 80,373,189.03 | 326,405,827.48 | 874,946,585.00 |
| 2.Increasedamountoftheperiod | 485,250,292.69 | 28,084,905.75 | 15,040,566.04 | 19,498,611.74 | 62,624,083.53 | 547,874,376.22 | |
| (1)Purchase | 449,220,316.79 | 28,084,905.75 | 15,040,566.04 | 13,221,185.35 | 56,346,657.14 | 505,566,973.93 | |
| (2)Transferofconstructioninprogress | 6,277,426.39 | 6,277,426.39 | 6,277,426.39 | ||||
| (3)Increaseforbusinesscombination | |||||||
| (4)Increaseforotherreasons | 36,029,975.90 | 36,029,975.90 | |||||
| 3.Decreasedamountoftheperiod | 7,367,983.02 | 92,450.02 | 4,479,280.91 | 181,795.53 | 4,753,526.46 | 12,121,509.48 | |
| (1)Disposal | 7,367,983.02 | 92,450.02 | 181,795.53 | 274,245.55 | 7,642,228.57 | ||
| (2)Decreaseforlosingcontrollingright | |||||||
| (3)Decreaseforother | 4,479,280.91 | 4,479,280.91 | 4,479,280.91 | ||||
| Item | Landuseright | Intellectualproperty | Total | ||||
| Trademarkright | Patentandknow-how | Franchiserights | Righttousesoftwareandothers | Subtotal | |||
| reasons | |||||||
| 4.Endingbalance | 1,026,423,067.19 | 75,482,617.43 | 102,532,417.78 | 106,571,344.10 | 99,690,005.24 | 384,276,384.55 | 1,410,699,451.74 |
| II.Accumulatedamortization | |||||||
| 1.Beginningbalance | 40,662,235.55 | 5,364,671.49 | 46,294,309.44 | 6,663,037.50 | 35,284,562.07 | 93,606,580.50 | 134,268,816.05 |
| 2.Increasedamountoftheperiod | 41,340,908.53 | 10,123,516.22 | 4,442,025.00 | 7,871,162.33 | 22,436,703.55 | 63,777,612.08 | |
| (1)Withdrawal | 41,340,908.53 | 10,123,516.22 | 4,442,025.00 | 7,871,162.33 | 22,436,703.55 | 63,777,612.08 | |
| (2)Increaseforbusinesscombination | |||||||
| 3.Decreasedamountoftheperiod | 3,245,526.66 | 92,450.02 | 181,795.53 | 274,245.55 | 3,519,772.21 | ||
| (1)Disposal | 3,245,526.66 | 92,450.02 | 181,795.53 | 274,245.55 | 3,519,772.21 | ||
| (2)Decreaseforlosingcontrollingright | |||||||
| 4.Endingbalance | 78,757,617.42 | 5,272,221.47 | 56,417,825.66 | 11,105,062.50 | 42,973,928.87 | 115,769,038.50 | 194,526,655.91 |
| Item | Landuseright | Intellectualproperty | Total | ||||
| Trademarkright | Patentandknow-how | Franchiserights | Righttousesoftwareandothers | Subtotal | |||
| III.Depreciationreserves | |||||||
| 1.Beginningbalance | 2,901,082.61 | 2,901,082.61 | 2,901,082.61 | ||||
| 2.Increasedamountoftheperiod | |||||||
| (1)Withdrawal | |||||||
| (2)Increaseforbusinesscombination | |||||||
| 3.Decreasedamountoftheperiod | |||||||
| (1)Disposal | |||||||
| (2)Decreaseforlosingcontrollingright | |||||||
| 4.Endingbalance | 2,901,082.61 | 2,901,082.61 | 2,901,082.61 | ||||
| IV.Carryingvalue | |||||||
| 1.Endingcarryingvalue | 947,665,449.77 | 70,210,395.96 | 43,213,509.51 | 95,466,281.60 | 56,716,076.37 | 265,606,263.44 | 1,213,271,713.22 |
| 2.Beginningcarrying | 399,878,521.97 | 42,125,490.21 | 146,296,459.69 | 104,387,587.51 | 45,088,626.96 | 337,898,164.37 | 737,776,686.34 |
| Item | Landuseright | Intellectualproperty | Total | ||||
| Trademarkright | Patentandknow-how | Franchiserights | Righttousesoftwareandothers | Subtotal | |||
| value | |||||||
Note:TheotherincreaseinintangibleassetsinthisperiodwasmainlyduetothedeedtaxandstamptaxpaidbythesubsidiaryDongguanKonkatotransferthelanduserightstothesubsidiaryDongguanInvestment.
(2)LandUseRightwithCertificateofTitleUncompleted
| Item | Carryingvalue | Reason |
| LandusagerightofthesubsidiaryNanocrystalline | 5,346,467.73 | Underprocessing |
| SuiningPCBIndustrialPark-120muofland | 12,010,752.00 | Underprocessingforlandcertificate |
| SuiningSewageTreatmentPlantPhaseI-land | 18,968,768.00 | Underprocessingforlandcertificate |
(3)SignificantIntangibleAssets
| Item | Endingcarryingvalue | Remainingamortizationperiod |
| LandusagerightofFenggangKonkaIntelligentIndustrialPark | 202,109,758.67 | 49.67 |
| LandusagerightofDongguanInvestment | 156,408,716.63 | 49.92 |
| FranchiserightsofsewagetreatmentinLaizhou | 99,945,562.51 | 22.50 |
| LandusagerightofXGY(2006)No.04049 | 71,637,705.79 | 36.75 |
| LandusagerightofHuanjia(Henan) | 67,253,472.02 | 49.50 |
| LandusagerightofChongqingKonka | 63,026,688.87 | 49.67 |
| LandreservecenterAnkangSmartPlant2#land | 57,120,578.66 | 48.83 |
| LandreservecenterAnkangSmartPlant3#land | 19,613,810.67 | 48.92 |
(4)IntangibleAssetswithrestrictedownershiporusingright
| Item | Endingcarryingvalue | Reasons |
| LandusagerightofXingDaHongYe | 36,888,224.24 | Mortgageloanofland |
| LandusagerightofJiangxiKonka | 10,832,457.31 | Mortgageloanofland |
| LandusagerightofYinbinKonka | 13,680,576.00 | Landmortgageguarantee |
| LandusagerightofFrestec | 44,965,810.97 | Mortgageloanofland |
19.Goodwill
(1)OriginalCarryingValueofGoodwill
| Nameoftheinvestees | Beginningbalance | Increased | Decreased | Endingbalance | ||
| Formedfromthebusinesscombination | Other | Dispose | Other | |||
| AnhuiKonka | 3,597,657.15 | 3,597,657.15 | ||||
| EconTechnology | 467,825,151.34 | 467,825,151.34 | ||||
| JiangxiKonka | 340,111,933.01 | 340,111,933.01 | ||||
| XingDaHongYe | 44,156,682.25 | 44,156,682.25 | ||||
| Total | 855,691,423.75 | 855,691,423.75 | ||||
(2)ProvisionsforGoodwillImpairment
| Nameoftheinvestees | Beginningbalance | Increased | Decreased | Endingbalance | ||
| Withdrawal | Other | Dispose | Other | |||
| AnhuiKonka | ||||||
| EconTechnology | ||||||
| JiangxiKonka | 76,431,127.34 | 76,431,127.34 | ||||
| XingDaHongYe | ||||||
| Total | 76,431,127.34 | 76,431,127.34 | ||||
(3)RelevantinformationontheassetgrouporcombinationofassetgroupswheregoodwillislocatedThisyear,thecompanyhiredanappraisalagencytoassesstherecoverableamountoftheassetgrouporcombinationofassetgroupswherethegoodwillislocated.Theassetgroupcomposedofidentifiableintangibleassets(excludingworkingcapitalandnon-operatingassets)isrelatedtogoodwill.Theconfirmationoftheassetgroupatthetimeofgoodwillimpairmenttestisconsistentwiththeassetgrouporcombinationofassetgroupsdeterminedatthedateofpurchaseandthepreviousyear’sgoodwillimpairmenttest.
(4)Thekeyassumptionsandbasisforcalculatingtherecoverableamountoftheassetgroupareasfollows:
①Assumingthattheassessedunitcontinuestooperate,andtherearenomajorchangesinthekeyaspectsofthebusinessscope,salesmodelandchannels,management,etc.thataffectproductionandoperationfromthecurrentsituation;
②Assumethatthesocialandeconomicenvironmentoftheassessedunitdoesnotchangesignificantly,andtherelevantlaws,regulations,andpoliciesofthecountryandtheregionwherethecompanyislocatedhavenomajorchanges;③Assumethatthebusinessscope,operationmode,managementmode,etc.oftheassessedunitarecontinuouslyimprovedandimprovedonthebasisofmaintainingconsistency,andcanmaketimelyadjustmentsandinnovationsastheeconomydevelops;
④Assumethatthevariousproductsprovidedbytheassessedunitcanadapttomarketdemand,theformulatedgoalsandmeasurescanbeachievedasscheduledandatthescheduledtime,andtheexpectedbenefitsareobtained;
⑤Assumingthatinterestrates,exchangerates,taxbasesandtaxratesdonotchangesignificantlywithinthenormalrangeprescribedbythestate.⑥Therecoverableamountoftheassetgroupandassetgroupcombinationisbasedonthefive-yearbudgetapprovedbythemanagementandcalculatedusingthecashflowforecastmethod.
(5)Thegoodwillimpairmentofeachassetgroupofthecompanyisasfollows:
TherecoverableamountofJiangxiKonkaisdeterminedaccordingtothepresentvalueoftheexpectedfuturecashflow.Thefuturecashflowisdeterminedbasedonthefinancialbudgetapprovedbymanagementfrom2020to2024,andusesadiscountrateof12.07%.JiangxiKonka’scashflowformorethan5yearsiscalculatedbasedonagrowthrateof6.31%.Thecompanyhiredanappraisalagency,ShenzhenPengxinAssetAppraisalLandandRealEstateAppraisalCo.,Ltd.,toevaluatethecompany’ssubsidiaryJiangxiKonkaCompanyusingtheincomemethod,usingthepresentvalueoftheassetgroup’sestimatedfuturecashflowsasitsrecoverableamount.OnApril20,aPengxinAssetEvaluationReport[2020]No.S032,《KonkaGroupCo.,Ltd.'sAssetEvaluationReportofKonkaNewMaterialsAssetGroupforFinancialReportingPurposes》,wasissuedbasedonDecember31,2019.,ThecurrentvalueofJiangxiKonkaAssetsGroupontheassessmentbasedateisRMB1,742.8million,andthebookvalueoftheassetgroupafterfairvalueadjustmentisRMB18,862,113,ofwhichthebookvalueofgoodwill(convertedminorityshareholders)isRMB666,886.1thousand.Therecoverableamountoftheassetgroupislessthanthebookvalueoftheassetgroupcontaininggoodwill.Therefore,JiangxiKonkaCompany'sgoodwillprovisionforassetimpairmentisRMB76,431.1thousandinthisperiod.YikangTechnologyandXingdaHongyehavepassedthegoodwillimpairmenttest,andthereisnoimpairmentprovision.
20.Long-termDeferredExpenses
| Item | Beginningbalance | Increasedamount | Amortizationamount | Otherdecreasedamount | Endingamount |
| Renovationcosts | 34,904,540.12 | 19,371,132.42 | 14,160,642.76 | 4,273,194.46 | 35,841,835.32 |
| Shoppeexpense | 61,368,072.24 | 43,863,895.04 | 57,021,219.89 | 4,070,144.77 | 44,140,602.62 |
| Other | 14,950,814.41 | 30,515,778.07 | 17,858,951.54 | 27,607,640.94 | |
| Total | 111,223,426.77 | 93,750,805.53 | 89,040,814.19 | 8,343,339.23 | 107,590,078.88 |
21.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)DeferredIncomeTaxAssetswithoutOffset
| Item | Endingbalance | Beginningbalance | ||
| Deductibletemporarydifference | Deferredincometaxassets | Deductibletemporarydifference | Deferredincometaxassets | |
| Deductiblelosses | 2,855,624,412.76 | 706,342,740.49 | 1,358,336,470.51 | 336,401,597.67 |
| Assetsimpairmentprovision | 1,079,890,030.44 | 231,517,239.58 | 936,009,764.81 | 226,316,093.63 |
| Deferredincome | 66,778,170.56 | 15,971,309.52 | 85,456,786.55 | 20,389,065.68 |
| Accruedexpenses | 70,273,842.14 | 12,047,558.72 | 72,865,789.50 | 17,320,299.04 |
| Unrealizedinternalsalesprofits | 18,570,975.99 | 4,642,744.00 | 35,916,413.76 | 8,979,103.44 |
| Others | 75,254,629.43 | 17,241,589.86 | 123,082,867.34 | 30,027,794.84 |
| Total | 4,166,392,061.32 | 987,763,182.17 | 2,611,668,092.47 | 639,433,954.30 |
(2)ListsofDeferredIncomeTaxLiabilitieswithoutOffset
| Item | Endingbalance | Beginningbalance | ||
| Taxabletemporarydifference | Deferredincometaxliabilities | Taxabletemporarydifference | Deferredincometaxliabilities | |
| Estimatedaddedvaluenotunderthesamecontrol | 406,494,736.72 | 76,293,954.88 | 597,961,840.34 | 119,325,356.84 |
| Prepaidinterest | 68,199,141.94 | 16,489,202.46 | 71,719,199.88 | 17,929,799.97 |
| Accelerateddepreciationoffixedassets | 3,732,276.80 | 559,841.52 | 5,929,959.47 | 889,493.92 |
| Changeinfairvalueofheld-for-tradingfinancialassets | - | - | 3,005,381.67 | 751,345.42 |
| Other | 8,496,388.76 | 2,124,097.19 | 8,496,388.76 | 2,124,097.19 |
| Total | 486,922,544.22 | 95,467,096.05 | 687,112,770.12 | 141,020,093.34 |
(3)ListofUnrecognizedDeferredIncomeTaxAssets
| Item | Endingbalance | Beginningbalance |
| Deductiblelosses | 2,693,777,327.44 | 2,688,310,555.91 |
| Deductibletemporarydifference | 407,628,243.69 | 294,734,548.10 |
| Total | 3,101,405,571.13 | 2,983,045,104.01 |
22.OtherNon-currentAssets
| Item | Endingbalance | Beginningbalance |
| Prepaymentforland-purchase | 820,340,528.30 | 10,099,279.84 |
| Prepaymentforequipment | 277,656,830.39 | 6,497,317.32 |
| Entrustedloans | 40,000,000.00 | 120,000,000.00 |
| Constructionofgovernmentprojects | 34,475,365.16 | 41,410,334.97 |
| OrientKonkano.1(zhuhai)privateequityinvestmentfund(limitedpartnership) | 158,810,750.31 | |
| Other | 660,007.95 | |
| Total | 1,172,472,723.85 | 337,477,690.39 |
23.Short-termBorrowings
| Item | Endingbalance | Beginningbalance |
| Creditloan | ||
| Guaranteedloan(note①) | 23,666,915.46 | |
| Pledgedloan(note②③) | 155,000,000.00 | 30,000,000.00 |
| Mortgageloan | 1,445,320,018.29 | 1,113,964,731.70 |
| Mortgagedpledgedloan(note④) | 8,643,683,405.88 | 12,471,968,199.93 |
| Mortgagedguaranteedloan(note⑤⑥) | 65,016,900.00 | |
| Aloansecured,pledged,orpledged | 268,200,000.00 | |
| Total | 10,332,687,239.63 | 13,884,132,931.63 |
Note:
①KonkaGroupprovidesjointliabilityguaranteesforitssubsidiaryAnhuiKonka,SichuanKonka,PengrunTechnology,HongKongKonka,XingdaHongye,YikangTechnology,JiangxiKonka,andXinfengMicrocrystallineforatotalofRMB1,505,320,018.29.
②KonkaGrouppledgedRMB1billionbankacceptancedraftaspledgetoobtainshort-termloansofRMB1,167,675,585.65fromBankofChinaFutianSub-branch.
③SubsidiaryYikangTechnologypledgedRMB100millionasashort-termloanofRMB194,394,169.69fromtheIndustrialBankCo.,Ltd.YantaiDevelopmentZoneSub-branch.
④SubsidiaryXingdaHongyeobtainedashort-termloanofRMB95,000,000.00fromtheFushaSub-branchofZhongshanRuralCommercialBankwithaplantvaluedatRMB44,211,667.78,alanduserightmortgageofRMB14,985,923.42,andapledgeofRMB19,800,000.00.⑤SubsidiaryXingdaHongyeobtainedashort-termloanofRMB60,000,000.00fromIndustrialBankZhongshanBranchbymortgageofadormitorywithabookvalueofRMB9,934,417.82andlanduserightsofRMB21,902,300.82.KonkaGroupprovidesjointliabilityguarantee.
⑥SubsidiaryBoroPrecisionobtainedashort-termloanofRMB5,016,900.00fromGuangzhouBankCo.,Ltd.HuizhouBranchwiththerealestateofBoroKonka'sbookvalueofRMB10,159,362.39ascollateral.KonkaGroupprovidesjointliabilityguarantee.
24.Held-for-tradingFinancialLiabilities
| Item | Endingbalance | Beginningbalance |
| Item | Endingbalance | Beginningbalance |
| Forwardforeignexchangecontractloss | 2,459,603.25 | |
| Total | 2,459,603.25 |
25.NotesPayable
| Category | Endingbalance | Beginningbalance |
| Tradeacceptance | 1,136,168,273.60 | 730,422,780.31 |
| Bank’sacceptancebill | 183,228,100.77 | 131,907,909.16 |
| Total | 1,319,396,374.37 | 862,330,689.47 |
26.AccountsPayable
(1)ListofAccountsPayable
| Item | Endingbalance | Beginningbalance |
| Within1year | 4,589,056,681.97 | 4,041,645,573.26 |
| 1to2years | 1,000,925,754.57 | 262,217,987.99 |
| 2to3years | 165,360,015.84 | 12,677,653.94 |
| Over3years | 42,480,027.22 | 46,181,835.14 |
| Total | 5,797,822,479.60 | 4,362,723,050.33 |
(2)SignificantAccountsPayableAgingoverOneYear
| Item | Endingbalance | Unpaid/Un-carry-overreason |
| Projectfunds | 639,448,614.65 | Settlementconditionsnotmet |
| Total | 639,448,614.65 | — |
27.AdvancesfromCustomers
(1)ListofAdvancesfromCustomers
| Item | Endingbalance | Beginningbalance |
| Within1year | 959,538,151.80 | 654,982,234.51 |
| 1to2years | 51,536,115.55 | 32,910,085.56 |
| 2to3years | 27,958,032.82 | 13,172,633.37 |
| Over3years | 37,824,086.91 | 22,162,575.76 |
| Item | Endingbalance | Beginningbalance |
| Total | 1,076,856,387.08 | 723,227,529.20 |
(2)SignificantAdvancesfromCustomersAgingoverOneYear
| Item | Endingbalance | Unpaid/Un-carry-overreason |
| DongguanKonkaMouldPlasticCo.,Ltd. | 24,974,635.75 | Settlementconditionsnotmet |
| ShenzhenKonkaVideo&CommunicationSystemsEngineeringCo.,Ltd. | 15,357,854.41 | Settlementconditionsnotmet |
| Total | 40,332,490.16 | — |
28.PayrollPayable
(1)ListofPayrollPayable
| Item | Beginningbalance | Increase | Increasebymerger | Decrease | Decreasebylosingcontrollingright | Endingbalance |
| I.Short-termsalary | 375,284,193.12 | 1,751,113,773.38 | 1,698,595,354.78 | 5,441,418.52 | 422,361,193.20 | |
| II.Post-employmentbenefit-definedcontributionplans | 1,222,374.59 | 136,728,868.13 | 134,511,511.85 | 31,692.30 | 3,408,038.57 | |
| III.Terminationbenefits | 29,671,275.91 | 28,570,009.11 | 1,101,266.80 | |||
| IV.Currentportionofotherbenefits | ||||||
| Total | 376,506,567.71 | 1,917,513,917.42 | 1,861,676,875.74 | 5,473,110.82 | 426,870,498.57 |
(2)ListofShort-termSalary
| Item | Beginningbalance | Increase | Increasebymerger | Decrease | Decreasebylosingcontrollingright | Endingbalance |
| 1.Salary,bonus,allowance,subsidy | 359,657,745.92 | 1,548,674,817.36 | 1,495,852,780.27 | 5,144,280.24 | 407,335,502.77 | |
| 2.Employeewelfare | 5,620,738.67 | 65,176,408.54 | 65,444,848.61 | 205,004.94 | 5,147,293.66 | |
| 3.Socialinsurance | 3,138,171.50 | 60,192,530.93 | 60,100,091.86 | 19,191.28 | 3,211,419.29 | |
| Ofwhich:Medicalinsurance | 768,410.84 | 51,091,568.40 | 51,557,119.89 | 13,173.87 | 289,685.48 |
| Item | Beginningbalance | Increase | Increasebymerger | Decrease | Decreasebylosingcontrollingright | Endingbalance |
| premiums | ||||||
| Work-relatedinjuryinsurance | 160,343.82 | 3,405,513.23 | 3,521,509.27 | 4,356.05 | 39,991.73 | |
| Maternityinsurance | 2,209,416.84 | 5,695,449.30 | 5,021,462.70 | 1,661.36 | 2,881,742.08 | |
| 4.Housingfund | 545,498.50 | 49,405,469.08 | 49,294,935.18 | 51,945.00 | 604,087.40 | |
| 5.Laborunionbudgetandemployeeeducationbudget | 5,581,101.82 | 11,173,765.03 | 11,496,461.91 | 20,997.06 | 5,237,407.88 | |
| 6.Short-termabsencewithpayment | ||||||
| 7.Short-termprofitsharingplan | 1,849.46 | 1,849.46 | ||||
| 8.Other | 740,936.71 | 16,488,932.98 | 16,404,387.49 | 825,482.20 | ||
| Total | 375,284,193.12 | 1,751,113,773.38 | 1,698,595,354.78 | 5,441,418.52 | 422,361,193.20 |
(3)ListofDefinedContributionPlan
| Item | Beginningbalance | Increase | Increasebymerger | Decrease | Decreasebylosingcontrollingright | Endingbalance |
| 1.Basicpensionbenefits | 1,147,799.70 | 132,937,160.79 | 130,701,248.42 | 30,242.03 | 3,353,470.04 |
| Item | Beginningbalance | Increase | Increasebymerger | Decrease | Decreasebylosingcontrollingright | Endingbalance |
| 2.Unemploymentinsurance | 74,574.89 | 3,791,707.34 | 3,810,263.43 | 1,450.27 | 54,568.53 | |
| 3.Annuity | ||||||
| Total | 1,222,374.59 | 136,728,868.13 | 134,511,511.85 | 31,692.30 | 3,408,038.57 |
TheCompany,inlinewiththerequirement,participatetheendowmentinsurance,unemploymentinsuranceschemeandsoon,accordingtothescheme,theCompanymonthlypaytotheschemeinlinewithrequirementsoflocalgovernment,exceptthemonthlypayment,theCompanynolongershoulderthefurtherpaymentobligation,therelevantexpenseoccurredwasrecordedintocurrentprofitsandlossesorrelatedassetscosts.
29.TaxesPayable
| Item | Endingbalance | Beginningbalance |
| Corporateincometax | 341,818,196.88 | 111,659,382.84 |
| VAT | 197,795,056.62 | 127,267,736.84 |
| Fundfordisposingabandonedappliancesandelectronicproducts | 22,862,428.00 | 16,496,706.00 |
| Urbanmaintenanceandconstructiontax | 12,363,121.25 | 9,508,557.03 |
| EducationfeesandlocaleducationSurcharge | 9,346,458.05 | 6,842,959.97 |
| Individualincometax | 7,468,808.32 | 1,757,048.49 |
| Stampduty | 5,046,657.96 | 3,162,037.00 |
| Landusetax | 3,587,908.55 | 3,390,503.70 |
| Realestatetax | 2,868,061.86 | 2,444,284.96 |
| Tariff | 2,440,099.93 | 2,867,887.18 |
| Floodcontrolfund,fundforembankment,fundforwaterconservancyandfundforrivermanagement | 1,047,610.21 | 1,057,937.59 |
| Other | 1,200,887.36 | 1,549,150.84 |
| Total | 607,845,294.99 | 288,004,192.44 |
30.OtherPayables
| Item | Endingbalance | Beginningbalance |
| Interestpayable | 227,831,108.53 | 27,230,631.41 |
| Otherpayables | 2,146,456,134.67 | 1,997,426,646.33 |
| Total | 2,374,287,243.20 | 2,024,657,277.74 |
30.1InterestPayable
| Item | Endingbalance | Beginningbalance |
| Interestoncorporatebonds | 180,268,944.49 | - |
| Interestonlong-termborrowingswithinterestpaidbyinstalmentandprincipalpaidatmaturity | 27,783,745.85 | 9,833,829.87 |
| Interestpayableonshort-termborrowings | 19,189,933.23 | 17,053,625.76 |
| Other | 588,484.96 | 343,175.78 |
| Total | 227,831,108.53 | 27,230,631.41 |
31.2OtherPayables
(1)ListedbyNatureofAccount
| Item | Endingbalance | Beginningbalance |
| Expensespayable | 947,395,951.75 | 971,679,417.48 |
| Come-and-gomoney | 162,935,213.66 | 280,592,078.50 |
| Equitytransferpayment | 374,725,896.96 | 380,180,000.00 |
| Relatedpartyborrowing | 374,227,833.11 | 108,233,202.82 |
| moneyGenerationofadvances | 260,078,756.86 | 196,746,104.46 |
| Cashdepositandfront | 13,789,615.70 | 49,796,310.13 |
| Other | 13,302,866.63 | 10,199,532.94 |
| Total | 2,146,456,134.67 | 1,997,426,646.33 |
(2)OtherSignificantPayablesAgingoverOneYear
| Item | Endingbalance | Unpaid/Un-carry-overreason |
| EquitytransfermoneyofEconTechnology | 288,500,000.00 | Notmeetthesettlementconditions |
| EquitytransfermoneyofJiangxiKonka | 76,680,000.00 | Notmeetthesettlementconditions |
| Total | 365,180,000.00 | — |
31.CurrentPortionofNon-currentLiabilities
| Item | Endingbalance | Beginningbalance |
| Currentportionoflong-termborrowings | 123,000,000.00 | 40,000,000.00 |
| Currentportionoflong-termpayables | 87,066,077.13 | 111,792,404.13 |
| Total | 210,066,077.13 | 151,792,404.13 |
32.Long-termBorrowings
| Item | Endingbalance | Beginningbalance |
| Entrustedloans① | 3,334,060,000.00 | 160,000,000.00 |
| Pledgeloan②③④ | 1,088,300,000.00 | |
| Creditloan | 123,000,000.00 | 125,000,000.00 |
| Mortgageguaranteeloan⑤ | 103,995,729.90 | |
| Pledgeguaranteeloan⑥ | 133,960,000.00 | 150,000,000.00 |
| Mortgageguaranteeloan(Note⑦) | 100,000,000.00 | 50,000,000.00 |
| Graranteemoergagepledgeloan⑧ | 130,000,000.00 | |
| Less:Currentportion | 123,000,000.00 | 40,000,000.00 |
| Total | 4,890,315,729.90 | 445,000,000.00 |
Note:①TheOCTGroupissuedentrustedloanstothecompanythroughtheChinaMerchantsBankfundpool.Thecompanyobtainedlong-termloansintheamountofRMB3,334,060,000.00fromtheChinaMerchantsBankOCTSub-branch.TheloanperiodisfromApril16,2019toApril15,2020.4.21.②DonggangKangrun,asubsidiary,tooktheoperatingincomeandotherincomeofthePPPprojectofDonggangCityInlandComprehensiveTreatmentProjectasapledgetoobtainalong-termloanofRMB600,000,000.00fromtheChinaConstructionBankDonggangSub-branch.TheloanperiodisfromJanuary31,2019to2036January30.③SubsidiaryFunanKangrunobtainedalong-termloanofRMB270,000,000.00fromtheAgriculturalBankofChinaFunanCountySub-branchwiththefeasibilitygapsubsidyunderthePPPproject<PPPcontract>ofthewholeareasewagetreatmentprojectofFunanCountyandgovernmentpaymentaspledge.TheloanperiodisfromAugust23,2019toAugust22,2039,andthepledgeperiodisfromAugust23,2019toAugust22,2039.
④WeifangSihai,asubsidiaryofthecompany,pledgedthelong-termloanamountofRMB213,300,000.00fromIndustrialBankCo.,Ltd.WeifangBranchwiththeaccountsreceivableformedfromalltheproceedsandincomerightsoftheWeifangBinhaiEconomicDevelopmentZonePPPproject.TheloanperiodisfromFromJune26,2019toJune25,2035,thepledgeperiodisfromJune25,2019toJune25,2035.⑤ThecompanyoriginallyusedtheGuangmingprojectlanduserightsascollateraltoobtainalong-termloanofRMB103,995,729.90fromGuangdongHuaxingBankShenzhenBranch.TheloanperiodisfromApril12,2019toApril11,2024.Subsequently,accordingtotheprogressoftheprojectconstruction,thelandcertificateneedstobechangedtoarealestatecertificate.Thecompanyappliedtothebanktoreleasetheoriginallandcertificate,supplementedwith104,000,000.00yuanofmonetaryfundsasatemporarydepositpledge,andhasbeenupdatedonJanuary6,2020Therealestatecertificategoesthroughthemortgageproceduresandthesecuritydeposithasbeenreleased.
⑥SubsidiaryRushanYiketakespledgedaccountsreceivablefromthegovernmentprocurementoftheRushanFinanceBureauasapledgetoobtainalong-termloanofRMB133,960,000.00fromthebranchofChinaEverbrightBankYantaiEconomicDevelopmentZone.TheloanperiodisfromFromDecember29,2016toDecember28,2026,thepledgeperiodisfromDecember29,2016toDecember28,2026;thesubsidiaryYikangTechnologyprovidesajointliabilityguarantee.
⑦SubsidiarySichuanKonkausedthelanduserightswithabookvalueofRMB13,817,152.13ascollateraltoobtainalong-termloanofRMB100,000,000.00fromSichuanGangrongInvestmentDevelopmentGroupCo.,Ltd.ThesubsidiaryCommunicationTechnologyprovidesjointliabilityguaranteeforthisloan.
⑧AnhuiElectricalAppliancesusedafactorybuildingwithabookvalueofRMB142,619,430.72andalanduserightofRMB44,965,810.97ascollateraltoobtainalong-termloanofRMB130,000,000.00fromMaanshanSub-branchofChinaMinshengBank.OnFebruary2,thepledgeperiodisFebruary2,2019toFebruary2,2024.Thecompanyprovidesjointliabilityguarantee.
33.BondsPayable
(1)ListofBondsPayable
| Item | Endingbalance | Beginningbalance |
| Non-publicofferingcorporatebonds | 4,987,709,643.64 | |
| Total | 4,987,709,643.64 |
(2)Increase/DecreaseofBondsPayable
| Bondsname | Parvalue | Issuingdate | Duration | Issuingamount | Beginningbalance |
| 19Konka01(note①) | 1,000,000,000.00 | 14January2019 | 2+1years | 996,500,000.00 | |
| 19Konka02(note②) | 1,500,000,000.00 | 14January2019 | 3years | 1,494,750,000.00 | |
| 19Konka03(note③) | 500,000,000.00 | 3June2019 | 2+1years | 498,250,000.00 | |
| 19Konka04(note④) | 500,000,000.00 | 3June2019 | 3years | 498,250,000.00 | |
| 19Konka05(note⑤) | 800,000,000.00 | 22July2019 | 2+1years | 797,200,000.00 | |
| 19Konka06(note⑥) | 700,000,000.00 | 22July2019 | 3years | 697,550,000.00 | |
| Total | 5,000,000,000.00 | 4,982,500,000.00 |
(Continued)
| Bondsname | Increasedthroughmerger | IssuedduringtheReportingPeriod | Withdrawinterestatfacevalue | Amortizationofpremiumanddiscount | RepayduringtheReportingPeriod | Endingbalance |
| 19Konka01(note①) | — | 996,500,000.00 | 48,750,000.04 | 1,298,742.17 | — | 997,798,742.17 |
| 19Konka02(note②) | — | 1,494,750,000.00 | 73,124,999.98 | 1,948,113.21 | — | 1,496,698,113.21 |
| 19Konka03(note③) | — | 498,250,000.00 | 13,250,000.00 | 420,073.37 | — | 498,670,073.37 |
| 19Konka04(note④) | — | 498,250,000.00 | 13,838,888.88 | 420,073.37 | — | 498,670,073.37 |
| 19Konka05(note⑤) | — | 797,200,000.00 | 16,408,666.68 | 598,742.14 | — | 797,798,742.14 |
| 19Konka06(note⑥) | — | 697,550,000.00 | 14,896,388.91 | 523,899.38 | — | 698,073,899.38 |
| Total | 4,982,500,000.00 | 180,268,944.49 | 5,209,643.64 | — | 4,987,709,643.64 |
Note:
①On14January2019,RMB1billionofprivateplacementcorporatebondswasissuedwiththedurationoftwoplusoneyears,theannualinterestrateof5.00%andtheduedateof14January2021.
②On14January2019,RMB1.5billionofprivateplacementcorporatebondswasissuedwiththedurationofthreeyears,theannualinterestrateof5.00%andtheduedateof14January2022.③On3June2019,RMB0.5billionofprivateplacementcorporatebondswasissuedwiththedurationoftwoplusoneyears,theannualinterestrateof4.50%andtheduedateof3June2021.④On15January2019,RMB0.5billionofprivateplacementcorporatebondswasissuedwiththedurationofthreeyears,theannualinterestrateof4.70%andtheduedateof3June2022.⑤On22July2019,RMB0.8billionofprivateplacementcorporatebondswasissuedwiththedurationoftwoplusoneyears,theannualinterestrateof4.53%andtheduedateof22July2021.⑥On22July2019,RMB0.7billionofprivateplacementcorporatebondswasissuedwiththedurationofthreeyears,theannualinterestrateof4.70%andtheduedateof22July2022.
34.Long-termPayables
| Item | Endingbalance | Beginningbalance |
| Accruedfinancingleaseoutlay | 519,416,941.74 | 240,167,001.54 |
| Including:unrecognizedfinancingexpense | 49,063,759.99 | - |
| Less:Currentportion | 87,066,077.13 | 111,792,404.13 |
| Total | 383,287,104.62 | 128,374,597.41 |
35.Long-termPayrollPayable
| Item | Endingbalance | Beginningbalance |
| I.Terminationbenefits-netliabilitiesofdefinedcontributionplans | 5,565,646.72 | 8,792,614.98 |
| II.Terminationbenefits | - | |
| III.Otherlong-termwelfare | - | - |
| Total | 5,565,646.72 | 8,792,614.98 |
(2)ChangesinDefinedBenefitPlans
①Obligationpresentvalueofdefinedbenefitplans:
| Item | Reportingperiod | Sameperiodoflastyear |
| I.Beginningbalance | 8,792,614.98 | 13,361,821.86 |
| II.Definedbenefitcostrecordedintocurrentprofitsandlosses | - | - |
| 1.Currentservicecost | - | - |
| 2.Previousservicecost | - | - |
| 3.Settlementgains(“－”forloss) | - | - |
| 4.Netinterest | - | - |
| III.Thecostofdefinedbenefitrecordedintoothercomprehensiveincome | - | - |
| 1.Actuarialgains(“－”forloss) | - | - |
| IV.Otherchanges | 3,226,968.26 | 4,569,206.88 |
| 1.Considerationpaidwhensettled | - | - |
| 2.Welfarepaid | 3,226,968.26 | 4,569,206.88 |
| V.Endingbalance | 5,565,646.72 | 8,792,614.98 |
②Notestotheinfluenceofthecontentandrelatedriskofdefinedbenefitpensionschemestothefuturecashflows,timeanduncertaintyoftheCompany:
Duetoupgradingandreconstructionofcurrentworksitesofthesubsidiary,TelecommunicationTechnology,itistoadjustthelaborrelationsaccordingtoImplementationMeasuresforAccompanyingEmployeesinmanufacturingsystemofShenzhenKonkaTelecommunicationTechnologyCo.,Ltd.OnthepremisetobalancetheCompany’andemployees’benefitsandvoluntaryselection,Telecommunication
Technologyprovidesearlyretirementplansforsenioremployees(employedbefore31December1990andsignednon-fixedtermlaborcontractwiththeCompanyorCommunicationTechnology).TheaccumulativecompensationpaidtotheinternalearlyretirementpensionsinfutureyearisRMB34,931,714.55,theCompanyinlinewithAgreementofInternalEarlyRetirementPension,inlinewiththestandardofsalaryremainingthesame,turnoverrateof0,themortalityrateof,fixstandardofsocialsecuritybasepaymentremainingthesametotestthepresentworthofdefinedbenefitplans.Theactualpaymentfortheemployeeisinfluencebytheactualturnoverrate,deathrateandthechangesofminimumcardinalityofsocialsecurity.③NotestoActuarialAssumptionsandSensibilityAnalysisResultofDefinedBenefitPensionSchemes
| Significantassumptionsestimated | Period-endofReportingPeriod | Period-endoflastyear |
| Discountrate | TreasurybondrateinSameperiod | — |
| Deathrate | 0% | — |
| Expectedaveragelifeexpectancy | Overlegalemeritusage | — |
| Expectedcompensationgrowthrate | 0% | — |
36.Provisions
| Item | Beginningbalance | Endingbalance | Reasonforformation |
| Pendinglitigations | 21,566,306.86 | ||
| Other | 206,591.51 | 206,591.51 | |
| Total | 206,591.51 | 21,772,898.37 | — |
37.DeferredIncome
(1)CategoryofDeferredIncome
| Item | Beginningbalance | Increase | Decrease | Endingbalance | Reasonforformation |
| Governmentsubsidies | 112,899,128.24 | 70,351,404.14 | 31,376,273.93 | 151,874,258.45 | Relatedtoassets/relatedtoincome |
| Total | 112,899,128.24 | 70,351,404.14 | 31,376,273.93 | 151,874,258.45 | — |
(2)ListofGovernmentSubsidy
| Governmentsubsidy | Beginningbalance | Newamountintheperiod | Amountchargedtonon-operatingincomeintheperiod | Amountchargedtootherincomeintheperiod | Amountoffsettingcost/expenseintheperiod | Otherchanges | Endingbalance | Asset/income-related |
| SubsidyforconstructionofYibinfactoryofYibinKonkaIndustrialPark | 56,943,815.54 | 56,943,815.54 | Asset-related | |||||
| SubsidyforDualHDROLEDSmartTVR&Dandindustrializationproject | 13,300,000.00 | 13,300,000.00 | Asset-related | |||||
| SubsidyforthesmartTVindustrialchainprojectofKonkaGroupCo.,Ltd. | 15,354,500.00 | 4,494,000.00 | 10,860,500.00 | Asset-related | ||||
| OperatingsubsidyforKonkaZhifuLifeScienceInnovationCenterproject | 8,500,000.06 | 1,999,999.92 | 6,500,000.14 | Asset-related | ||||
| SubsidyforKonkaYibinIntelligentTerminalInnovationCenterIncubationProject | 6,000,000.00 | 6,000,000.00 | Asset-related |
| Governmentsubsidy | Beginningbalance | Newamountintheperiod | Amountchargedtonon-operatingincomeintheperiod | Amountchargedtootherincomeintheperiod | Amountoffsettingcost/expenseintheperiod | Otherchanges | Endingbalance | Asset/income-related |
| Subsidyfor2017ShenzhenIndustrialChainWeakLinksInvestmentProject | 4,500,000.00 | 4,500,000.00 | Asset-related | |||||
| Subsidyforsupportingthenext-generationInternetintelligentterminalsystemdevelopmentandproductionproject | 5,780,097.10 | 1,981,747.56 | 3,798,349.54 | Asset-related | ||||
| SubsidyforKonkasmarthomecloudsmartcontrolplatformconstructionproject | 3,620,000.00 | 723,999.96 | 2,896,000.04 | Asset-related | ||||
| CapitalsubsidyforShenzhenEconomyandTradeandInformatizationCommittee2015ShenzhenIndustrialDesignCenter | 3,000,000.00 | 450,000.00 | 2,550,000.00 | Asset-related | ||||
| SubsidyforKonkanext-generationmulti-mediaterminaltechnologyengineeringlabproject | 3,500,000.06 | 999,999.96 | 2,500,000.10 | Asset-related | ||||
| Postgrantfor2016IndustrialEnterpriseTechnologicalRenovation | 2,734,200.00 | 546,840.00 | 2,187,360.00 | Asset-related | ||||
| SubsidyforNB-IOT-baseddisplayterminalsmartfactorynewmodelproject | 3,003,000.00 | 819,000.00 | 2,184,000.00 | Asset-related | ||||
| Subsidyfordevelopmentandindustrializationofdigitalproductsthatarecollaborativeandconnected | 2,600,000.00 | 519,999.96 | 2,080,000.04 | Asset-related | ||||
| Subsidyfornext-generationhouseholdmulti-mediaterminaltechnologyengineeringlabimprovementproject | 2,000,000.00 | 2,000,000.00 | Asset-related |
| Governmentsubsidy | Beginningbalance | Newamountintheperiod | Amountchargedtonon-operatingincomeintheperiod | Amountchargedtootherincomeintheperiod | Amountoffsettingcost/expenseintheperiod | Otherchanges | Endingbalance | Asset/income-related |
| Subsidyfor8Kequipmentend-to-endsignalconnectionkeytechnologyandterminaldisplayproductR&Dproject | 1,800,000.00 | 1,800,000.00 | Asset-related | |||||
| SubsidyforveinR&Dcenterproject | 1,750,000.00 | 1,750,000.00 | Asset-related | |||||
| SpecificsubsidyformobileInternet4th-generationmobilecommunicationindustrialization | 2,219,077.41 | 484,415.04 | 1,734,662.37 | Asset-related | ||||
| SubsidyforIGRS-basedinformationterminalR&Dandindustrializationproject | 1,400,000.00 | 1,400,000.00 | Asset-related | |||||
| 2017provincialmajorspecificsubsidy | 1,880,000.00 | 480,000.00 | 1,400,000.00 | Asset-related | ||||
| Subsidyforbigdatamining-baseduseroperationsystemR&Dandindustrializationproject | 1,320,000.00 | 1,320,000.00 | Asset-related | |||||
| SubsidyforAVS/DRA-basedterminalandsupportingcorechipR&Dproject | 2,435,333.22 | 1,124,000.04 | 1,311,333.18 | Asset-related | ||||
| Subsidyfortruethree-dimentionalvideocontinualviewpointreal-timeintegrationandadvancetestingproject | 1,420,000.00 | 142,000.02 | 1,277,999.98 | Asset-related | ||||
| Subsidyformodulewhole-machineintegrationproject | 1,575,000.00 | 300,000.00 | 1,275,000.00 | Asset-related | ||||
| SubsidyformobileintelligentterminalnewapplicationservicesystemR&Dandindustrializationproject | 2,013,583.52 | 747,799.92 | 1,265,783.60 | Asset-related |
| Governmentsubsidy | Beginningbalance | Newamountintheperiod | Amountchargedtonon-operatingincomeintheperiod | Amountchargedtootherincomeintheperiod | Amountoffsettingcost/expenseintheperiod | Otherchanges | Endingbalance | Asset/income-related |
| SubsidyforspecialdecorationofHuiqiflagshipstoreofShenzhenInternationalConsumerElectronicsExchange/ExhibitionCenterCo.,Ltd. | 1,200,000.00 | 1,200,000.00 | Asset-related | |||||
| SpecificsubsidyforDongguanFiscalProvincial-levelstrategicemergingindustries | 1,800,000.00 | 600,000.00 | 1,200,000.00 | Asset-related | ||||
| Subsidyforsuper-shortfocuslaserprojectingsmartTVR&Dproject | 1,375,000.00 | 300,000.00 | 1,075,000.00 | Asset-related | ||||
| Subsidyforbuilt-inoperationsystemforTVapplicationR&Dproject | 1,492,270.06 | 459,159.96 | 1,033,110.10 | Asset-related | ||||
| Subsidyforsecureandreliablechip-basedsatellitegroundreceiverproject | 1,000,000.00 | - | 1,000,000.00 | Asset-related | ||||
| CentralinfrastructureinvestmentbudgetarysubsidyforpreliminaryworkofPPPproject | 1,000,000.00 | 1,000,000.00 | Asset-related | |||||
| 2016GuangdongProvinceenterpriseresearchanddevelopmentprovincialfiscalsubsidy | 1,146,099.94 | 229,220.04 | 916,879.90 | Asset-related | ||||
| 2010-2012industrialtechnologyspecificsubsidy | 1,260,000.00 | 420,000.00 | 840,000.00 | Asset-related | ||||
| SubsidyformobileintelligentterminalinformationsecuritysystemkeytechnologyR&Dproject | 1,315,187.04 | 480,000.00 | 835,187.04 | Asset-related |
| Governmentsubsidy | Beginningbalance | Newamountintheperiod | Amountchargedtonon-operatingincomeintheperiod | Amountchargedtootherincomeintheperiod | Amountoffsettingcost/expenseintheperiod | Otherchanges | Endingbalance | Asset/income-related |
| Specificsubsidyforbusinessrestructuring | 999,999.84 | 200,000.04 | 799,999.80 | Asset-related | ||||
| 2018AnhuiProvinceroboticsspecificsubsidy | 900,000.00 | 120,000.00 | 780,000.00 | Asset-related | ||||
| Subsidyfordual-channelnew3DsmartTVR&Dandindustrializationproject | 1,184,166.75 | 405,999.96 | 778,166.79 | Asset-related | ||||
| Postfiscalsubsidyfor2016industrialenterprisetechnologicalrenovation | 916,850.04 | 183,369.96 | 733,480.08 | Asset-related | ||||
| Subsidyformultipleviewpointhigh-definitionnuke-eye3DsmartLCDTVproject | 1,500,000.00 | 825,000.00 | 675,000.00 | Asset-related | ||||
| Subsidyfornewman-machineinteractionsmartTVR&Dandindustrializationproject | 1,577,067.83 | 1,051,378.68 | 525,689.15 | Asset-related | ||||
| Subsidyforthree-networksintegrationsmartTVandsystemsupportplatformproject | 666,666.80 | 399,999.96 | 266,666.84 | Asset-related | ||||
| AnhuiProvinceTechnologyOfficeR&Ddevicessubsidy | 221,250.00 | 45,000.00 | 176,250.00 | Asset-related | ||||
| Subsidyfor3DTVterminaldevelopmentandindustrializationproject | 1,300,000.00 | 1,191,666.85 | 108,333.15 | Asset-related | ||||
| Subsidyfortwointegrationleanmanufacturingexecutionsystemcomprehensiveintegratedinnovationproject | 2,100,000.00 | 2,100,000.00 | Asset-related |
| Governmentsubsidy | Beginningbalance | Newamountintheperiod | Amountchargedtonon-operatingincomeintheperiod | Amountchargedtootherincomeintheperiod | Amountoffsettingcost/expenseintheperiod | Otherchanges | Endingbalance | Asset/income-related |
| SubsidyforcurvedOLEDV9XseriesTVdesignandcommercialtransformationproject | 1,960,000.00 | 1,960,000.00 | Asset-related | |||||
| LEDbacklightflatpanelTVkeytechnologyresearchanddevelopmentandindustrialprojectsubsidies | 750,000.17 | 750,000.17 | Asset-related | |||||
| SubsidyforR&DofDIDLCDTVWallforrainy,snowy,foggyandotherspecialweatherconditions | 149,999.96 | 25,000.02 | 124,999.94 | Asset-related | ||||
| ProvincialIPspecificsubsidy | 200,000.00 | 140,000.00 | 60,000.00 | - | Income-related | |||
| Otherasset-relatedgovernmentsubsidies | 7,079,778.44 | 1,507,588.60 | 3,483,839.18 | 7,836.79 | 5,095,691.07 | Asset-related | ||
| Total | 112,899,128.24 | 70,351,404.14 | 31,183,437.20 | 67,836.79 | 124,999.94 | 151,874,258.45 |
38.ShareCapital
| Item | Beginningbalance | Increase/decrease(+/-) | Endingbalance | ||||
| Newsharesissued | Bonusshares | Bonusissuefromprofit | Other | Subtotal | |||
| Thesumofshares | 2,407,945,408.00 | 2,407,945,408.00 | |||||
39.CapitalReserves
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Capitalpremium | 7,393,378.55 | 7,393,378.55 | ||
| Othercapitalreserves | 200,963,245.66 | 29,405,331.43 | 23,237,054.07 | 207,131,523.02 |
| Total | 208,356,624.21 | 29,405,331.43 | 23,237,054.07 | 214,524,901.57 |
Note:Othercapitalreserveincreasedby29405331.43Yuanduetocapitalincreaseofminorityshareholdersofe-squareofthecompany;capitalreserve(sharepremium)decreasedby7393378.55Yuanduetorepurchaseofminorityshareholders'equityofsubsidiarymobileInternet,andsurplusreservedecreasedby15843675.52Yuanduetoinsufficientoffsetofcapitalreserve(sharepremium).
40.OtherComprehensiveIncome
| Item | Beginningbalance | ReportingPeriod | Endingbalance | |||||
| IncomebeforetaxationintheCurrentPeriod | Less:RecordedinothercomprehensiveincomeinpriorperiodandtransferredinprofitorlossintheCurrentPeriod | Less:RecordedinothercomprehensiveincomeinpriorperiodandtransferredinretainedearningsintheCurrentPeriod | Less:Incometaxexpense | AttributabletoownersoftheCompanyastheparentaftertax | Attributabletonon-controllinginterestsaftertax | |||
| I.Itemsthatwillnotbereclassifiedtoprofitorloss | -9,652,181.00 | -9,652,181.00 | ||||||
| Changesinfairvalueofotherequityinstrumentinvestment | -9,652,181.00 | -9,652,181.00 | ||||||
| II.Itemsthatwillbereclassifiedtoprofitorloss | -10,538,219.08 | 650,246.53 | -1,102,703.44 | 1,752,949.97 | -11,640,922.52 | |||
| Ofwhich:Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | -2,397,350.96 | -2,397,350.96 | ||||||
| Gainsandlossesonchangesinfairvalueofavailable-for-salefinancialassets | ||||||||
| Differencesarisingfromthetranslationofforeigncurrencydenominatedfinancialstatements | -8,140,868.12 | 650,246.53 | -1,102,703.44 | 1,752,949.97 | -9,243,571.56 | |||
| Total | -10,538,219.08 | -9,001,934.47 | -1,102,703.44 | 1,752,949.97 | -21,293,103.52 | |||
41.SurplusReserves
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Statutorysurplusreserves | 973,502,519.62 | 973,502,519.62 | ||
| Discretionalsurplusreserves | 254,062,265.57 | 254,062,265.57 | ||
| Total | 1,227,564,785.19 | 1,227,564,785.19 |
42.RetainedEarnings
| Item | ReportingPeriod | Sameperiodoflastyear |
| Endingbalanceoflastyear | 4,271,408,192.21 | 4,260,125,492.57 |
| Add:Totalbeginningbalanceofretainedearningsbeforeadjustments | ||
| Ofwhich:changesofaccountingpolicies | -2,884,254.62 | |
| Otheradjustmentfactors | ||
| BeginningbalanceoftheReportingPeriod | 4,268,523,937.59 | 4,260,125,492.57 |
| Add:NetprofitattributabletoownersoftheCompanyastheparent | 212,034,210.08 | 411,289,744.68 |
| Less:Withdrawalofstatutorysurplusreserves | 9,919,910.40 | |
| Withdrawalofdiscretionalsurplusreserves | ||
| Dividendofordinarysharespayable | 240,794,540.78 | 390,087,134.64 |
| Endingbalanceofthisyear | 4,239,763,606.89 | 4,271,408,192.21 |
43.OperatingRevenueandCostofSales
(1)OperatingRevenueandCostofSales
| Item | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Mainoperations | 54,571,250,596.51 | 51,874,875,221.16 | 44,539,559,406.49 | 41,961,861,198.85 |
| Otheroperations | 547,874,882.21 | 263,323,279.88 | 1,587,237,934.84 | 1,265,752,715.60 |
| Total | 55,119,125,478.72 | 52,138,198,501.04 | 46,126,797,341.33 | 43,227,613,914.45 |
(2)MainOperations(Classifiedbyproduct)
| Item | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Item | ReportingPeriod | Sameperiodoflastyear | ||
| ColorTVbusiness | 8,765,607,417.92 | 8,005,508,211.90 | 9,892,486,636.93 | 8,689,731,404.20 |
| Mobilephonebusiness | 387,519,655.81 | 365,230,272.39 | 331,298,592.29 | 327,425,343.91 |
| Consumerappliancesbusiness | 3,829,318,820.56 | 3,299,314,084.65 | 2,127,731,143.29 | 1,767,282,597.98 |
| Environmentalprotectionbusiness | 7,079,397,665.91 | 6,379,216,880.51 | 3,020,514,260.13 | 2,634,491,782.63 |
| Supplychaintradingbusiness | 32,744,925,411.86 | 32,376,857,384.01 | 28,348,817,442.89 | 28,068,819,224.05 |
| Other | 1,764,481,624.45 | 1,448,748,387.70 | 818,711,330.96 | 474,110,846.08 |
| Total | 54,571,250,596.51 | 51,874,875,221.16 | 44,539,559,406.49 | 41,961,861,198.85 |
44.TaxesandSurtaxes
| Item | ReportingPeriod | Sameperiodoflastyear |
| Urbanmaintenanceandconstructiontax | 26,917,643.05 | 24,828,107.02 |
| Stampduty | 22,123,062.33 | 15,162,609.72 |
| Landusetax | 17,468,778.99 | 12,019,009.56 |
| Propertytax | 15,307,845.93 | 14,178,084.66 |
| Educationsurcharge | 12,222,254.16 | 11,001,522.37 |
| Localeducationsurcharge | 8,143,404.48 | 7,345,690.22 |
| VATofland | 3,071,897.09 | - |
| Waterresourcesfund | 758,046.72 | 1,309,631.97 |
| Others | 3,838,898.36 | 3,845,210.41 |
| Total | 109,851,831.11 | 89,689,865.93 |
45.SellingExpense
| Item | ReportingPeriod | Sameperiodoflastyear |
| Salary | 587,024,261.02 | 730,468,898.17 |
| Advertisingexpense | 459,598,430.49 | 349,308,929.28 |
| Promotionalactivities | 299,435,084.44 | 342,640,120.91 |
| LogisticFee | 406,337,281.28 | 337,227,473.98 |
| Warrantyfee | 197,180,754.12 | 202,084,416.68 |
| Taxesandfund | 53,068,717.14 | 53,380,828.00 |
| Exhibitionexpenses | 46,248,959.80 | 25,377,016.80 |
| Businesstravelcharges | 38,355,711.50 | 35,211,979.96 |
| Rentalcharges | 20,839,323.65 | 23,247,889.18 |
| Businessentertainmentexpenses | 19,360,409.81 | 21,055,262.45 |
| Other | 175,683,798.81 | 162,171,426.23 |
| Item | ReportingPeriod | Sameperiodoflastyear |
| Total | 2,303,132,732.06 | 2,282,174,241.64 |
46.AdministrativeExpense
| Item | ReportingPeriod | Sameperiodoflastyear |
| Salary | 419,423,921.56 | 278,758,343.19 |
| Depreciationcharge | 101,216,934.52 | 71,547,932.45 |
| Consultingfees | 45,022,285.82 | 42,016,562.62 |
| Socialsecuritiesexpense | 31,652,888.41 | 22,483,701.61 |
| Businesstravelcharges | 21,665,580.27 | 22,475,469.34 |
| Patentfee | 16,457,657.10 | 22,609,874.52 |
| Wealfareforemployees | 16,807,653.85 | 15,390,406.89 |
| Lossonscrapingofinventories | 11,955,696.11 | 11,658,004.88 |
| Water&electricityfees | 12,761,543.31 | 10,237,943.20 |
| Laborunionexpenditure | 4,777,836.99 | 5,597,428.25 |
| Other | 174,787,329.68 | 139,117,329.23 |
| Total | 856,529,327.62 | 641,892,996.18 |
47.R&DExpense
| Item | ReportingPeriod | Sameperiodoflastyear |
| Salary | 197,406,785.63 | 176,668,069.66 |
| Materialdrawingout | 104,755,285.94 | 47,815,656.03 |
| Expensesontrialproductionofnewproducts | 88,111,358.93 | 112,453,347.32 |
| Commissionservicecharge | 41,462,134.39 | |
| Depreciationandamortization | 12,437,250.53 | 11,820,275.57 |
| Informationcharges | 11,747,617.21 | 10,466,824.02 |
| Testingfees | 5,812,646.23 | 11,555,165.21 |
| Water&electricityfees | 3,025,199.91 | 5,399,670.34 |
| Businesstravelcharges | 3,657,172.93 | 3,309,558.94 |
| Other | 32,184,650.53 | 16,971,578.15 |
| Total | 500,600,102.23 | 396,460,145.24 |
48.FinanceCosts
| Item | ReportingPeriod | Sameperiodoflastyear |
| Interestexpense | 1,031,068,425.69 | 566,070,556.21 |
| Item | ReportingPeriod | Sameperiodoflastyear |
| Less:Interestincome | 247,559,600.76 | 43,630,012.41 |
| Foreignexchangeprofitorloss | -67,740,367.81 | -174,702,042.10 |
| Other | 60,120,356.02 | 51,427,312.69 |
| Total | 775,888,813.14 | 399,165,814.39 |
49.OtherIncome
| Item | ReportingPeriod | Sameperiodoflastyear |
| Supportfund | 967,721,870.00 | 18,108,788.00 |
| Rewardsandsubsidies | 156,190,460.00 | 173,850,805.31 |
| Softwaretaxrebates | 39,348,087.93 | 64,656,609.96 |
| Transferofdeferredincome | 31,183,437.20 | 29,357,262.38 |
| Postsubsidies | 19,185,216.90 | 1,796,103.67 |
| Landtaxrebates | 10,906,489.80 | 2,248,900.00 |
| L/Cexportsubsidy | 3,560,576.00 | 3,821,338.00 |
| Other | 1,078,696.50 | 425,824.91 |
| Total | 1,229,174,834.33 | 294,265,632.23 |
Note:Theincreaseinotherincomewasmainlyduetotheincreaseinindustrysupportfundsreceivedinthisperiod.
50.InvestmentIncome
| Item | ReportingPeriod | Sameperiodoflastyear |
| Long-termequityinvestmentincomemeasuredbyequitymethod | 141,264,035.96 | 19,139,381.20 |
| Investmentincomefromdisposaloflong-termequityinvestment | 569,444,481.69 | 185,587,193.61 |
| Investmentincomefromholdingofheld-for-tradingfinancialassets | 2,330,000.00 | |
| Investmentincomefromdisposalofheld-for-tradingfinancialassets | -10,285,883.02 | -45,928,989.49 |
| Dividendincomefromholdingofotherequityinstrumentinvestments | ||
| Investmentincomefromholdingofheld-to-maturityinvestments | ||
| Investmentincomefromdisposalofheld-to-maturityinvestments | ||
| Investmentincomefromholdingofavailable-for-salefinancialassets | 17,920,000.00 | |
| Investmentincomefromdisposalofavailable-for-salefinancialassets | 17,360,398.59 |
| Item | ReportingPeriod | Sameperiodoflastyear |
| Incomefromremeasurementofresidualstockrightsatfairvalueafterlosingcontrolpower | 342,337,346.63 | 551,089,548.47 |
| Incomefrompurchaseoffinancialproductsandentrustloans | 73,534,655.05 | 183,411,695.80 |
| Investmentincomeadjustedduetounrealizedprofitsgeneratedfromupstreamtransactions | 4,322,774.22 | -1,164,857.22 |
| Interestincomefromholdingofdebtinstrumentinvestments | 60,433,679.86 | |
| Total | 1,183,381,090.39 | 927,414,370.96 |
51.GainonChangesinFairValue
| Sources | ReportingPeriod | Sameperiodoflastyear |
| Tradingfinancialassets | 5,168,185.39 | |
| Ofwhich:gainonchangesinfairvalueofderivativefinancialinstruments | 5,168,185.39 | |
| Tradingfinancialliabilities | -3,005,381.67.67 | |
| Investmentpropertyatfairvalue | 45,022,867.25 | |
| Ofwhich:gainonchangesinfairvalueofderivativefinancialinstruments | 45,022,867.25 | |
| Total | -3,005,381.67 | 50,191,052.64 |
52.CreditImpairmentLoss
| Item | ReportingPeriod | Sameperiodoflastyear |
| Impairmentlossonnotesreceivable | -4,306,077.35 | |
| Impairmentlossonaccountsreceivable | -339,398,520.50 | |
| Impairmentlossonotherreceivables | -183,525,075.35 | |
| Baddebtlossofprepayment | -4,649,595.56 | |
| Total | -531,879,268.76 |
53.AssetImpairmentLoss
| Item | ReportingPeriod | Sameperiodoflastyear |
| Baddebtloss | -86,898,151.31 | |
| Inventoryfallingpriceloss | -197,576,487.91 | -139,421,841.21 |
| Impairmentlossonfixedassets | -549,228.15 |
| Item | ReportingPeriod | Sameperiodoflastyear |
| Impairmentlossonlong-termequityinvestment | -29,028,300.57 | |
| Impairmentlossongoodwill | -76,431,127.34 | |
| Total | -303,035,915.82 | -226,869,220.67 |
54.AssetDisposalIncome(“－”forloss)
| Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Fixedassetsdisposalincome | 199,562,396.99 | -563,894.74 | 199,562,396.99 |
| Intangibleassetsdisposalincome | 94,144,243.65 | - | 94,144,243.65 |
| Total | 293,706,640.64 | -563,894.74 | 293,706,640.64 |
55.Non-operatingIncome
(1)ListofNon-operatingIncome
| Item | ReportingPeriod | SamePeriodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Insuranceindemnity | 74,801,658.73 | 253,973.63 | 74,801,658.73 |
| Compensationandpenaltyincome | 41,951,152.92 | 15,463,539.64 | 41,951,152.92 |
| GovernmentsubsidiesunrelatedtothenormaloperationoftheCompany | 14,692,600.00 | 30,000,000.00 | 14,692,600.00 |
| Gainsondebtrestructuring | 14,536,434.36 | 46,445,749.23 | 14,536,434.36 |
| Negativegoodwillgeneratedfromshareswhosecombinationcostlessthanthefairvalueofrecognizablenetassetsobtained | - | 220,045,229.63 | - |
| Other | 19,861,542.93 | 16,487,647.96 | 19,861,542.93 |
| Total | 165,843,388.94 | 328,696,140.09 | 165,843,388.94 |
(1)Ofwhich,governmentsubsidiesrecordedintocurrentprofitorloss:
| Item | Distributionentity | Distributionreason | Nature | Whethersubsidiesinfluencethecurrentprofitsandlossesornot | Specialsubsidyornot | ReportingPeriod | SamePeriodoflastyear | Relatedtoassets/relatedtoincome |
| ConstructiontooperationrewardforprojectlandinginChuzhou | ChuzhouTongshengInvestmentDevelopmentCo.,Ltd. | RewardobtainedforprojectlandinginChuzhoufromChuzhouEconomicandTechnologicalDevelopmentZone | Subsidy | Not | Not | - | 30,000,000.00 | Relatedtoincome |
| ProjectsubsidyofChuzhouHuikeintelligentapplianceindustryinvestment | ChuzhouTongshengInvestmentDevelopmentCo.,Ltd. | SubsidyforparticipatinginChuzhouHuikeintelligentapplianceindustryinvestment | Subsidy | Not | Not | 9,692,600.00 | - | Relatedtoincome |
| SubsidyofremovalofAnhuiKonkaZhilian | ChuzhouTongshengInvestmentDevelopmentCo.,Ltd. | SubsidyobtainedforremovaltoestablishingIntelligentAppliancesandEquipmentIndustrialPark | Subsidy | Not | Not | 5,000,000.00 | - | Relatedtoincome |
| Total | - | - | - | - | - | 14,692,600.00 | 30,000,000.00 |
56.Non-operatingExpense
| Item | ReportingPeriod | SamePeriodoflastyear | Amountrecordedintothecurrentnon-recurringprofitorloss |
| Lossesondamageandscrapingofnon-currentassets | 4,445,790.35 | 3,503,737.74 | 4,445,790.35 |
| Compensationexpense | 9,631,943.32 | 2,846,395.24 | 9,631,943.32 |
| Donations | 1,139,372.59 | 177,601.00 | 1,139,372.59 |
| Other | 4,455,618.74 | 1,687,718.92 | 4,455,618.74 |
| Total | 18,533,352.41 | 8,037,851.90 | 18,533,352.41 |
57.IncomeTaxExpense
(1)ListsofIncomeTaxExpense
| Item | ReportingPeriod | Sameperiodoflastyear |
| Currentincometaxexpense | 514,367,217.82 | 145,391,357.02 |
| Deferredincometaxexpense | -398,727,126.00 | -359,113,186.48 |
| Total | 115,640,091.82 | -213,721,829.46 |
(2)AdjustmentProcessofAccountingProfitandIncomeTaxExpense
| Item | ReportingPeriod |
| Profitbeforetaxation | 450,576,207.16 |
| Currentincometaxexpenseaccountedatstatutory/applicabletaxrate | 112,644,051.79 |
| Influenceofapplyingdifferenttaxratesbysubsidiaries | -104,749,193.99 |
| Influenceofincometaxbeforeadjustment | 17,951,051.11 |
| Influenceofnon-taxableincome | -88,184,072.05 |
| Influenceofnotdeductablecosts,expensesandlosses | 61,005,370.46 |
| Influenceofdeductablelossofunrecognizeddeferredincometaxassetsinpriorperiod | -42,012,707.36 |
| InfluenceofdeductabletemporarydifferenceordeductablelossesofunrecognizeddeferredincometaxintheReportingPeriod | 132,050,201.09 |
| Changesinthebalanceofdeferredincometaxassets/liabilitiesinpreviousperiodduetoadjustmentoftaxrate | 9,140,086.86 |
| Other | 17,795,303.91 |
| Incometaxexpense | 115,640,091.82 |
58.OtherComprehensiveIncomeReferto“NoteVI-40.OtherComprehensiveIncome”fordetails.
59.CashFlowStatement
(1)CashGeneratedfrom/UsedinOtherOperating/Investing/FinancingActivities
1)CashGeneratedfromOtherOperatingActivities
| Item | ReportingPeriod | SamePeriodoflastyear |
| Commercialfactoringaccountsreceived | 1,350,090,436.53 | 3,046,250,433.88 |
| Intercoursefunds | 88,274,570.49 | 48,357,936.24 |
| Incomefromgovernmentsubsidy | 1,253,240,751.45 | 240,968,351.06 |
| Frontmoneyandguaranteedeposit | 1,164,255,729.60 | 150,767,666.31 |
| Interestincomefrombankdeposits | 31,706,637.33 | 21,754,813.26 |
| Compensationofsuppliers | 24,896,023.45 | 27,704,625.75 |
| Other | 98,551,896.43 | 178,866,666.63 |
| Total | 4,011,016,045.28 | 3,714,670,493.13 |
2)CashUsedinOtherOperatingActivities
| Item | ReportingPeriod | SamePeriodoflastyear |
| Thecommercialfactoringpayment(Note) | 972,659,093.50 | 2,925,211,901.01 |
| Expenseforcashpayment | 1,529,577,152.08 | 1,150,343,818.19 |
| Paymentmadeonbehalf | 30,691,357.02 | 51,369,090.01 |
| Paymentforguaranteedeposit,cashdeposit | 1,019,583,946.33 | 344,427,373.48 |
| Expenseforbankhandlingcharges | 37,748,563.79 | 31,199,551.45 |
| Energyconversationsubsidyreturned | 89,960,000.00 | |
| Other | 258,365,510.89 | 106,531,146.44 |
| Total | 3,938,585,623.61 | 4,609,082,880.58 |
3)CashGeneratedfromOtherInvestingActivities
| Item | ReportingPeriod | SamePeriodoflastyear |
| Recoveryoffinancialproducts | 454,850,000.00 | 2,145,785,000.00 |
| Recoveryofentrustedloans | 1,268,950,000.00 | 17,600,000.00 |
| Other | 361,869,168.69 | 229,643,228.96 |
| Total | 2,085,669,168.69 | 2,393,028,228.96 |
4)CashUsedinOtherInvestingActivities
| Item | ReportingPeriod | SamePeriodoflastyear |
| Purchaseoffinancialproducts | 1,020,737,610.69 | 1,028,080,000.00 |
| Paymentforentrustedloans | 1,919,000,000.00 | |
| Other | 507,903,146.78 | 2,439,200.00 |
| Total | 1,528,640,757.47 | 2,949,519,200.00 |
5)CashGeneratedfromOtherFinancingActivities
| Item | ReportingPeriod | SamePeriodoflastyear |
| Recoveryofmargindepositpledged | 601,239,942.14 | - |
| Financelease | 417,095,790.00 | |
| Receivingentrustedloans | 807,263,000.00 | 298,225,230.01 |
| Other | 32,726,515.41 | |
| Total | 1,825,598,732.14 | 330,951,745.42 |
6)CashUsedinOtherFinancingActivities
| Item | ReportingPeriod | SamePeriodoflastyear |
| Depositasmarginforpledge | 1,154,091,959.94 | 116,939,471.09 |
| Repaymentofentrustedloans | 71,200,000.00 | 226,425,248.50 |
| Financelease | 275,515,872.11 | 412,777,454.04 |
| Financingexpense | 29,297,829.55 | 1,392,251.29 |
| Other | 93,037,101.26 | |
| Total | 1,623,142,762.86 | 757,534,424.92 |
(2)SupplementalInformationforCashFlowStatement
| Supplementalinformation | ReportingPeriod | Sameperiodoflastyear |
| 1.Reconciliationofnetprofittonetcashflowsgeneratedfromoperatingactivities | ||
| Netprofit | 334,936,115.34 | 668,618,421.57 |
| Add:Provisionforimpairmentofassets | 303,035,915.82 | 226,869,220.67 |
| Creditimpairmentloss | 531,879,268.76 | |
| Depreciationoffixedassets,oil-gasassets,andproductivelivingassets | 256,657,385.35 | 170,534,496.07 |
| Amortizationofintangibleassets | 63,777,612.08 | 32,421,715.58 |
| Amortizationoflong-termprepaidexpenses | 89,040,814.19 | 74,931,813.60 |
| Supplementalinformation | ReportingPeriod | Sameperiodoflastyear |
| Lossesondisposaloffixedassets,intangibleassetsandotherlong-livedassets(gains:negative) | -293,706,640.64 | 563,894.74 |
| Lossesonscrapoffixedassets(gains:negative) | 3,087,048.55 | 3,294,272.44 |
| Lossesonchangesinfairvalue(gains:negative) | 3,005,381.67 | -50,191,052.64 |
| Financecosts(gains:negative) | 932,273,917.11 | 544,195,357.06 |
| Investmentloss(gains:negative) | -1,183,381,090.39 | -927,414,370.96 |
| Decreaseindeferredincometaxassets(gains:negative) | -354,179,532.93 | -323,517,091.85 |
| Increaseindeferredincometaxliabilities(“-”meansdecrease) | -45,502,532.99 | 37,991,934.70 |
| Decreaseininventories(gains:negative) | -88,405,617.33 | -668,140,011.75 |
| Decreaseinaccountsreceivablegeneratedfromoperatingactivities(gains:negative) | -1,524,655,193.77 | 261,056,969.48 |
| Increaseinaccountspayableusedinoperatingactivities(decrease:negative) | -540,433,861.49 | -3,251,682,178.99 |
| Other | -31,376,273.93 | -29,357,262.38 |
| Netcashgeneratedfrom/usedinoperatingactivities | -1,543,947,284.60 | -3,229,823,872.66 |
| 2.Significantinvestingandfinancingactivitieswithoutinvolvementofcashreceiptsandpayments | ||
| Transferofdebttocapital | ||
| Currentportionofconvertiblecorporatebonds | ||
| Fixedassetsleasedinbyfinancing | ||
| 3.Netincrease/decreaseofcashandcashequivalent: | ||
| Endingbalanceofcash | 4,493,701,917.22 | 3,434,149,481.72 |
| Less:beginningbalanceofcash | 3,434,149,481.72 | 3,097,899,703.76 |
| Add:Endingbalanceofcashequivalents | ||
| Less:Beginningbalanceofcashequivalents | ||
| Netincreaseincashandcashequivalents | 1,059,552,435.50 | 336,249,777.96 |
(3)NetCashReceivefromDisposaloftheSubsidiaries
| Item | Amount |
| CashorcashequivalentsreceivedintheReportingPeriodfromdisposalofsubsidiariesintheCurrentPeriod | 348,974,844.00 |
| Ofwhich:ChuzhouKonkaTID | 63,520,500.00 |
| KonkaE-display | 37,500,000.00 |
| ChuzhouKangjin | 122,254,344.00 |
| HaimenKangjian | 90,000,000.00 |
| ShenzhenKangyue | 35,700,000.00 |
| Less:cashandcashequivalentsheldbysubsidiariesonthedateoflosingcontrolpower | 78,153,610.82 |
| Item | Amount |
| Ofwhich:ChuzhouKonkaTID | 35,782,809.20 |
| KonkaE-display | 32,562,517.55 |
| ChuzhouKangjin | 3,000,865.14 |
| HaimenKangjian | 1,438,795.14 |
| ShenzhenKangyue | 5,368,623.79 |
| Add:CashorcashequivalentsreceivedintheReportingPeriodfromdisposalofsubsidiariesinthepriorperiod | |
| Netcashreceivedfromdisposalofsubsidiaries | 270,821,233.18 |
(4)CashandCashEquivalents
| Item | Endingbalance | Beginningbalance |
| Cash | 4,493,701,917.22 | 3,434,149,481.72 |
| Including:Cashonhand | 18,699.99 | 130,105.31 |
| Bankdepositondemand | 4,493,683,217.23 | 3,434,019,376.41 |
| Endingbalanceofcashandcashequivalents | 4,493,701,917.22 | 3,434,149,481.72 |
60.AssetswithRestrictedOwnershiporRighttoUse
| Item | Endingcarryingvalue(RMB) | Reasonforrestriction |
| Monetaryassets | 2,105,658,134.39 | OfwhichRMB2,060,124,748.03cannotbewithdrawnatanytime;RMB538,249,042.69wasfixedtimedeposit;RMB17,602,910.31wasfinancialregulatoryaccountandgovernmentappropriationfunds;RMB123,800,000.00wasdepositpledgedforloans;RMB17,358,307.91waslitigationfrozenfundsandRMB10,572,168.14wasrestrictedforotherreasons. |
| Notesreceivable | 1,446,285,041.78 | ThecompanypledgedbankacceptancebillswithabookvalueofRMB1,446,285,041.78yuanforcomprehensivefinancingservicessuchasissuingbankacceptancebills,lettersofcredit,guarantees,tradefinance,andbillpools. |
| Fixedassets | 541,531,198.68 | Usedformortgageloan,financeleaseandmortgageguarantee. |
| Intangibleassets | 106,367,068.52 | Formortgageloanandmortgageguarantee |
| Long-termreceivables | 351,861,826.09 | Forpledgeloan |
| Item | Endingcarryingvalue(RMB) | Reasonforrestriction |
| Total | 4,551,703,269.46 |
61.ForeignCurrencyMonetaryItems
(1)ForeignCurrencyMonetaryItems
| Item | Endingforeigncurrencybalance | Exchangerate | EndingbalanceconvertedtoRMB |
| Monetaryassets | — | — | — |
| Ofwhich:USD | 161,346,670.90 | 6.9762 | 1,125,586,645.55 |
| EUR | 108,947.29 | 7.8155 | 851,477.54 |
| EGP | 10,952,588.07 | 0.4356 | 4,770,947.36 |
| HKD | 10,544,079.04 | 0.8958 | 9,445,386.01 |
| PLN | 920,989.78 | 1.8368 | 1,691,674.03 |
| Accountsreceivable | |||
| Ofwhich:USD | 118,602,602.84 | 6.9762 | 827,395,477.93 |
| EGP | 2,085,114.89 | 0.4356 | 908,276.05 |
| HKD | 33,393,612.30 | 0.8958 | 29,913,997.90 |
| Otherreceivables | |||
| Ofwhich:USD | 6,281,335.37 | 6.9762 | 43,819,851.82 |
| JPY | 21,400,000.00 | 0.0641 | 1,371,740.00 |
| Interestreceivable | |||
| Ofwhich:USD | 627.45 | 6.9762 | 4,377.24 |
| Dividendsreceivable | |||
| Ofwhich:HKD | 140,000,000.00 | 0.8958 | 125,412,000.00 |
| Short-termborrowings | |||
| Ofwhich:USD | 98,297,903.18 | 6.9762 | 685,745,832.16 |
| Accountspayable | |||
| Ofwhich:USD | 42,269,219.38 | 6.9762 | 294,878,528.24 |
| EGP | 11,305,224.23 | 0.4356 | 4,924,555.67 |
| HKD | 130,507,046.19 | 0.8958 | 116,908,211.98 |
| Item | Endingforeigncurrencybalance | Exchangerate | EndingbalanceconvertedtoRMB |
| Ofwhich:EGP | 243,157.09 | 0.4356 | 105,919.23 |
| HKD | 47,345,911.31 | 0.8958 | 42,412,467.35 |
| Interestpayable | |||
| Ofwhich:USD | 275,923.30 | 6.9762 | 1,924,896.13 |
| HKD | 900,980.09 | 0.8958 | 807,097.96 |
(2)NotestoOverseasEntitiesThesignificantoverseasentitiesincludeHongKongKonka,KonkaElectricalAppliancesInternationalTrading,ChainKingdomMemoryTechnologies,KangjietongandJialiInternational.ThemainoverseasoperatingplaceisHongKong.TheCompany’srecordingcurrencyisHKDsincethemaincurrencyincirculationinHongKongisHKD.
62.GovernmentSubsidy
(1)BasicInformationonGovernmentSubsidy
| Category | Amount | Listeditems | Amountrecordedinthecurrentprofitorloss |
| SupportingfundofChongqingBishanproject | 440,000,000.00 | Otherincome | 440,000,000.00 |
| SupportingfundofSuiningKonkaIndustrialParkSuiningproject | 423,576,900.00 | Otherincome | 423,576,900.00 |
| Rewardsandsubsidies | 156,190,460.00 | Otherincome | 156,190,460.00 |
| SupportingfundofChongqingPhotoelectricResearchInstituteBishanproject | 70,000,000.00 | Otherincome | 70,000,000.00 |
| SubsidyofplantconstructionofYibinKonkaIndustrialParkproject | 56,943,815.54 | Deferredincome | - |
| Taxrebatesonsoftware | 39,348,087.93 | Otherincome | 39,348,087.93 |
| SupportingfundofChengduKonkaElectronicsQingbaijiangproject | 30,000,000.00 | Otherincome | 30,000,000.00 |
| Postsubsidies | 19,185,216.90 | Otherincome | 19,185,216.90 |
| Landtaxrebates | 10,906,489.80 | Otherincome | 10,906,489.80 |
| SupportingfundofYibinKonkaIndustrialParkproject | 4,144,970.00 | Otherincome | 4,144,970.00 |
| Other | 32,739,461.10 | Deferredincome/Otherincome/Non-operatingincome | 19,574,199.04 |
| Total | 1,283,035,401.27 | 1,212,926,323.67 |
(2)ReturnofGovernmentSubsidy
NosuchcasesintheReportingPeriod.。
ChangesofConsolidationScope
1.Asingledisposaloftheinvestmenttothesubsidiaryandlostcontrol
| Nameofthesubsidiary | Theequitydisposalprice | Equitydisposalproportion(%) | Methodofequitydisposal | Timeoflosingcontrol | Recognitionbasisforthetimeoflosingcontrolpower | Thedifferencesofenjoyednetassetsshareofthesubsidiaryincorrespondingconsolidatedstatementsofthedisposalpriceandthedisposalinvestment |
| ChuzhouKonkaTID | 6,352.05 | 51.00 | Transfer | 2019-6-21 | Therightsandobligationsrelatedtotheunderlyingequityhavebeentransferred | 4,554.52 |
| KonkaE-display | 3,750.00 | 15.00 | Transfer | 2019-6-21 | Therightsandobligationsrelatedtotheunderlyingequityhavebeentransferred | 3,185.78 |
| ChuzhouKangjin | 12,225.43 | 51.00 | Transfer | 2019-9-25 | Therightsandobligationsrelatedtotheunderlyingequityhavebeentransferred | 10,707.01 |
| ShenzhenKangyue | 3,570.00 | 51.00 | Transfer | 2019-12-17 | Therightsandobligationsrelatedtotheunderlyingequityhavebeentransferred | 2,563.78 |
| HaimenKangjian | 20,000.00 | 40.00 | Transfer | 2019-12-18 | Therightsandobligationsrelatedtotheunderlyingequityhavebeentransferred | 16,054.77 |
(Continued)
| Nameofthesubsidiary | Residualequityproportiononthedateoflosingcontrolpower(%) | Carryingvalueofresidualequityonthedateoflosingcontrolpower | Fairvalueofresidualequityonthedateoflosingcontrolpower | Gainsorlossesfromre-measurementofresidualequityatfairvalue | Recognitionmethodandmainassumptionoffairvalueofresidualequityonthedateoflosingcontrolpower | Amountofothercomprehensiveincomerelatedtoformersubsidiariestransferredintoinvestmentprofitorloss |
| ChuzhouKonkaTID | 49.00 | 1,727.04 | 6,102.95 | 4,375.91 | Evaluatedprice | — |
| KonkaE-display | 45.00 | 1,692.67 | 8,676.00 | 6,983.33 | Evaluatedprice | — |
| ChuzhouKangjin | 49.00 | 1,458.87 | 11,746.01 | 10,287.13 | Evaluatedprice | — |
| ShenzhenKangyue | 49.00 | 966.76 | 3,385.69 | 2,418.93 | Evaluatedprice | — |
| HaimenKangjian | 30.00 | 2,958.92 | 13,127.36 | 10,168.43 | Evaluatedprice | — |
2.ChangesinCombinationScopeforOtherReasons
(1)SubsidiariesEstablishedbytheCompanyin2019
| Name | Registeredcapital | Shareholdingpercentage(%) | Timeandplaceofobtainingcontrolpower | Methodofobtaining |
| ShengxingEnterprise | 10,000,000.00 | 51.00 | 2019-1-3 | Newlyestablished |
| Youzhihui | 10,000,000.00 | 100.00 | 2019-1-24 | Newlyestablished |
| SuiningElectronicTechnologicalInnovation | 200,000,000.00 | 100.00 | 2019-2-22 | Newlyestablished |
| XiaojiaTechnology | 10,000,000.00 | 100.00 | 2019-3-5 | Newlyestablished |
| YibinIntelligent | 20,000,000.00 | 100.00 | 2019-3-12 | Newlyestablished |
| KonkaHuanjia(Henan) | 100,000,000.00 | 51.00 | 2019-4-1 | Newlyestablished |
| LaizhouLairunSewage | 56,361,600.00 | 24.14 | 2019-4-11 | Newlyestablished |
| FunanKangrunWater | 122,500,000.00 | 40.55 | 2019-5-10 | Newlyestablished |
| YiheElectronic | 10,000,000.00 | 51.00 | 2019-5-14 | Newlyestablished |
| LushanKangrunEnvironmentManagement | 100,000,000.00 | 45.44 | 2019-6-3 | Newlyestablished |
| ChongqingKonka | 120,000,000.00 | 100.00 | 2019-6-6 | Newlyestablished |
| DongguanKonkaInvestment | 100,000,000.00 | 100.00 | 2019-6-28 | Newlyestablished |
| WuhanRunyuanSewageTreatment | 142,800,000.00 | 35.70 | 2019-7-15 | Newlyestablished |
| KONKOTECHNOLOGIESCO. | USD2,000,000.00 | 67.00 | 2019-7-22 | Newlyestablished |
| ChongqingKangxingrun | 50,000,000.00 | 51.00 | 2019-8-12 | Newlyestablished |
| ZhangmaoSemiconductor | 10,000,000.00 | 51.00 | 2019-8-15 | Newlyestablished |
| IndustrialParkDevelopment | 100,000,000.00 | 51.00 | 2019-9-4 | Newlyestablished |
| ShenzhenChuangzhiElectricalAppliance | 10,000,000.00 | 100.00 | 2019-9-5 | Newlyestablished |
| Kanghong(Yantai)EnvironmentalProtection | 30,000,000.00 | 51.00 | 2019-9-5 | Newlyestablished |
| TongchuanKangrunHonghui | 76,000,000.00 | 45.39 | 2019-9-10 | Newlyestablished |
| NorthAmericaKonka | USD1,000,000.00 | 100.00 | 2019-9-13 | Newlyestablished |
| HaimenKonka | 50,000,000.00 | 100.00 | 2019-9-29 | Newlyestablished |
| BoxingCountyXingkangEnvironmentalProtection | 100,000,000.00 | 35.70 | 2019-9-30 | Newlyestablished |
| ShenzhenHuiyingTechnology | 50,000,000.00 | 51.00 | 2019-9-30 | Newlyestablished |
| ChongqingKonkaPhotoelectricTechnologyResearchInstitute | 2,000,000,000.00 | 75.00 | 2019-9-30 | Newlyestablished |
| ZhitongTechnology | 10,000,000.00 | 51.00 | 2019-10-9 | Newlyestablished |
| XinyingSemiconductor | 100,000,000.00 | 56.00 | 2019-10-29 | Newlyestablished |
| ChongqingHuiyingTechnology | 30,000,000.00 | 51.00 | 2019-10-30 | Newlyestablished |
| Jiangkang(Shanghai)Technology | 20,000,000.00 | 51.00 | 2019-11-1 | Newlyestablished |
| E2info(Hainan) | 3,000,000.00 | 95.78 | 2019-11-6 | Newlyestablished |
| ChongqingPropertiesDevelopment | 50,000,000.00 | 51.00 | 2019-11-7 | Newlyestablished |
| Kanghong(Yantai)EnvironmentalProtectionTechnologyIndustrialPark | 10,000,000.00 | 51.00 | 2019-11-18 | Newlyestablished |
| ChongqingXingyiProperties | 50,000,000.00 | 51.00 | 2019-11-18 | Newlyestablished |
| Name | Registeredcapital | Shareholdingpercentage(%) | Timeandplaceofobtainingcontrolpower | Methodofobtaining |
| KangxinTechnology | 10,000,000.00 | 51.00 | 2019-11-21 | Newlyestablished |
| ChongqingFuzeProperties | 50,000,000.00 | 51.00 | 2019-11-21 | Newlyestablished |
| SuiningJiarunProperties | 10,000,000.00 | 100.00 | 2019-11-26 | Newlyestablished |
| KonkaZhizao | 20,000,000.00 | 51.00 | 2019-11-29 | Newlyestablished |
| debaoNewMaterial | 50,000,000.00 | 60.00 | 2019-11-29 | Newlyestablished |
| YuekangSemiconductor | 100,000,000.00 | 100.00 | 2019-12-5 | Newlyestablished |
| NingboKanghanruiElectricalAppliances | 150,000,000.00 | 60.00 | 2019-12-10 | Newlyestablished |
| FrestecIntelligent | 10,000,000.00 | 51.00 | 2019-12-11 | Newlyestablished |
| ChainKingdomMemoryTechnology | 5,000,000.00 | 51.00 | 2019-12-18 | Newlyestablished |
| ChengduKonkaIntelligentTechnology | 50,000,000.00 | 100.00 | 2019-12-20 | Newlyestablished |
| ChengduKonkaElectronics | 50,000,000.00 | 100.00 | 2019-12-20 | Newlyestablished |
| KangxinlongEnvironmentalProtection | 30,000,000.00 | 51.00 | 2019-12-23 | Newlyestablished |
| TingyuanEnvironmentalProtection | 50,000,000.00 | 51.00 | 2019-12-24 | Newlyestablished |
| ChuzhouKangxinHealthIndustry | 30,000,000.00 | 100.00 | 2019-12-25 | Newlyestablished |
| YantaiKangyun | 30,000,000.00 | 51.00 | 2019-12-30 | Newlyestablished |
| YantaiLaikang | 10,000,000.00 | 51.00 | 2019-12-30 | Newlyestablished |
(2)ChangesinCombinationScopeforOtherReasonsThesubsidiaryoftheCompany,MudanjiangAppliancesliquidatedintheReportingPeriodanddistributedtheresidualassets.VIII.EquityinOtherEntities
1.EquityinSubsidiary
(1)Subsidiaries
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| KonkaVentures | Shenzhen,Guangdong | Shenzhen,Guangdong | Otherorganizationandmanagementservice | 51.00 | - | Establishmentorinvestment |
| YantaiKonka | Yantai,Shandong | Yantai,Shandong | Otherprofessionalconsultancyandinvestigation | - | 51.00 | Establishmentorinvestment |
| ChengduKonka | Chengdu,Sichuan | Chengdu,Sichuan | Commercialservice | - | 51.00 | Establishmentorinvestment |
| ChengduAnren | Chengdu,Sichuan | Chengdu,Sichuan | Commercialservice | - | 51.00 | Establishmentorinvestment |
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| KonkaEnterpriseService | Guiyang,Guizhou | Guiyang,Guizhou | Headquartersmanagement | - | 51.00 | Establishmentorinvestment |
| ChuanghuiIntelligent | Nanjing,Jiangsu | Nanjing,Jiangsu | Entrepreneurialspaceservice | - | 40.80 | Establishmentorinvestment |
| Cross-borderKechuang | Shenzhen,Guangdong | Shenzhen,Guangdong | OtherITserviceindustrynotlistedclearly | - | 26.01 | Establishmentorinvestment |
| KonkaEnterpriseManagement | Guiyang,Guizhou | Guiyang,Guizhou | OtherCommercialservicenotlistedclearly | - | 51.00 | Establishmentorinvestment |
| YibinKonkaIncubator | Yibin,Sichuan | Yibin,Sichuan | Commercialservice | - | 51.00 | Establishmentorinvestment |
| AnhuiKonka | Chuzhou,Anhui | Chuzhou,Anhui | Manufacturingindustry | 78.00 | - | Establishmentorinvestment |
| KangzhiTrade | Chuzhou,Anhui | Chuzhou,Anhui | Wholesaleindustry | - | 78.00 | Establishmentorinvestment |
| KonkaFactoring | Shenzhen,Guangdong | Shenzhen,Guangdong | Insuranceagents(non-bankfinance) | 100.00 | - | Establishmentorinvestment |
| YoushiKangrong | Tianjin | Tianjin | Advertisement | - | 70.00 | Establishmentorinvestment |
| KonkaUnifortune | Shenzhen,Guangdong | Shenzhen,Guangdong | Retailindustry | 51.00 | - | Establishmentorinvestment |
| JialiInternational | HongKong,China | HongKong,China | Retailindustry | - | 51.00 | Establishmentorinvestment |
| Wankaida | Shenzhen,Guangdong | Shenzhen,Guangdong | Softwaredevelopment | 100.00 | - | Establishmentorinvestment |
| DongguanKonka | Dongguan,Guangdong | Dongguan,Guangdong | Manufacturingindustry | 75.00 | 25.00 | Establishmentorinvestment |
| TelecommunicationTechnology | Shenzhen,Guangdong | Shenzhen,Guangdong | Manufacturingindustry | 75.00 | 25.00 | Establishmentorinvestment |
| XiangkangTelecommunication | HongKong,China | HongKong,China | Manufacturingindustry | - | 100.00 | Establishmentorinvestment |
| ElectricalAppliances | Shenzhen,Guangdong | Shenzhen,Guangdong | Manufacturingindustry | 75.00 | 25.00 | Establishmentorinvestment |
| KonkaEurope | Frankfurt,Germany | Frankfurt,Germany | InternationalTrading | 100.00 | - | Establishmentorinvestment |
| CommercialSystemTechnology | Shenzhen,Guangdong | Shenzhen,Guangdong | Commerce | 81.00 | - | Establishmentorinvestment |
| KonkaElectricalAppliances | Shenzhen,Guangdong | Shenzhen,Guangdong | Manufacturingindustry,commerce | 100.00 | - | Establishmentorinvestment |
| KonkaMaterials | Haikou,Hainan | Haikou,Hainan | Commercialservice | - | 51.00 | Establishmentorinvestment |
| MobileInterconnection | Shenzhen,Guangdong | Shenzhen,Guangdong | Commerce | 100.00 | - | Establishmentorinvestment |
| SichuanKonka | Yibin,Sichuan | Yibin,Sichuan | Manufacturingindustry | - | 100.00 | Establishmentorinvestment |
| YibinIntelligent | Yibin,Sichuan | Yibin,Sichuan | Informationservice | 100.00 | Establishmentorinvestment | |
| AnhuiTongchuang | Chuzhou, | Chuzhou, | Manufacturingindustry | 100.00 | - | Establishment |
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| Anhui | Anhui | orinvestment | ||||
| ElectricalApplianceTechnology | Chuzhou,Anhui | Chuzhou,Anhui | Manufacturingindustry | - | 51.00 | Establishmentorinvestment |
| FrestecRefrigeration | Xinxiang,Henan | Xinxiang,Henan | Manufacturingindustry | - | 51.00 | Establishmentorinvestment |
| FrestecIntelligent | Xinxiang,Henan | Xinxiang,Henan | Manufacturingindustry | 51.00 | Establishmentorinvestment | |
| FrestecElectricalAppliances | Xinxiang,Henan | Xinxiang,Henan | Manufacturingindustry | - | 51.00 | Establishmentorinvestment |
| FrestecHouseholdAppliances | Xinxiang,Henan | Xinxiang,Henan | Manufacturingindustry | - | 51.00 | Establishmentorinvestment |
| PengrunTechnology | Shenzhen,Guangdong | Shenzhen,Guangdong | Retailindustry | 51.00 | - | Establishmentorinvestment |
| JiaxinTechnology | HongKong,China | HongKong,China | Retailindustry | - | 51.00 | Establishmentorinvestment |
| E3info | Haikou,Hainan | Haikou,Hainan | Networkplatformdevelopment | 60.00 | - | Establishmentorinvestment |
| YifangTechnology | Shenzhen,Guangdong | Shenzhen,Guangdong | Networkplatformdevelopment | - | 60.00 | Establishmentorinvestment |
| DongguanPacking | Dongguan,Guangdong | Dongguan,Guangdong | Manufacturingindustry | 75.00 | 25.00 | Establishmentorinvestment |
| E2info | Shenzhen,Guangdong | Shenzhen,Guangdong | Informationservice | 95.78 | - | Establishmentorinvestment |
| E2info(Hainan) | Haikou,Hainan | Haikou,Hainan | Informationservice | 95.78 | Establishmentorinvestment | |
| BeijingKonkaElectronic | Beijing | Beijing | Saleofhomeappliance | 100.00 | - | Establishmentorinvestment |
| KonkaLeasing | TianjinPilotFreeTradeZone | TianjinPilotFreeTradeZone | Leasingindustry | - | 100.00 | Establishmentorinvestment |
| FittingsTechnology | Shenzhen,Guangdong | Shenzhen,Guangdong | Investmentholding | 75.00 | 25.00 | Establishmentorinvestment |
| BoluoKonkaPrecision | Boluo,Guangdong | Boluo,Guangdong | Manufacturingindustry | - | 100.00 | Establishmentorinvestment |
| XiamenDalong | Xiamen,Fujian | Xiamen,Fujian | Commerce | - | 69.23 | Establishmentorinvestment |
| BoluoKonka | Boluo,Guangdong | Boluo,Guangdong | Manufacturingindustry | - | 100.00 | Establishmentorinvestment |
| HongKongKonka | HongKong,China | HongKong,China | Internationaltrading | 100.00 | - | Establishmentorinvestment |
| KonkaHouseholdAppliancesInvestment | HongKong,China | HongKong,China | Investmentholding | - | 100.00 | Establishmentorinvestment |
| ChainKingdom | HongKong,China | HongKong,China | Internationaltrading | - | 51.00 | Establishmentorinvestment |
| ChainKingdomShenzhen | Shenzhen,Guangdong | Shenzhen,Guangdong | Wholesaleindustry | - | 51.00 | Establishmentorinvestment |
| HefeiChain | Hefei,Anhui | Hefei,Anhui | Informationservice | 51.00 | Establishment | |
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| Kingdom | orinvestment | |||||
| KonkaZhesheng | HongKong,China | HongKong,China | Internationaltrading | - | 61.00 | Establishmentorinvestment |
| Kangjietong | HongKong,China | HongKong,China | Serviceindustry | - | 51.00 | Establishmentorinvestment |
| KonkaHouseholdAppliancesInternationalTrading | HongKong,China | HongKong,China | Internationaltrading | - | 100.00 | Establishmentorinvestment |
| KONKOTECHNOLOGIESCO. | Cairo,Egypt | Cairo,Egypt | Internationaltrading | - | 67.00 | Establishmentorinvestment |
| YuekangSemiconductor | Yantai,Shandong | Yantai,Shandong | Researchandexperimentaldevelopment | - | 100.00 | Establishmentorinvestment |
| NorthAmericaKonka | California,America | California,America | Internationaltrading | - | 100.00 | Establishmentorinvestment |
| Konkainvstment | Shenzhen,Guangdong | Shenzhen,Guangdong | Capitalmarketsservice | 100.00 | - | Establishmentorinvestment |
| YibinKonka | Yibin,Sichuan | Yibin,Sichuan | Developmentandmanagementofindustrialpark | - | 100.00 | Establishmentorinvestment |
| IndustryNewTown | Chengdu,Sichuan | Chengdu,Sichuan | Realestateindustry | - | 51.00 | Establishmentorinvestment |
| KonkaCapital | Shenzhen,Guangdong | Shenzhen,Guangdong | Capitalmarketsservice | - | 100.00 | Establishmentorinvestment |
| KonkaSuiyong | Shenzhen,Guangdong | Shenzhen,Guangdong | Investmentinindustry,commercialinformationconsultancyandinvestmentadvisor | - | 51.00 | Establishmentorinvestment |
| KangxinTechnology | Shenzhen,Guangdong | Shenzhen,Guangdong | Softwareandinformationtechnologyservice | 51.00 | Establishmentorinvestment | |
| KangquanEnterprise | Shenzhen,Guangdong | Shenzhen,Guangdong | Commercialservice | - | 51.00 | Establishmentorinvestment |
| KonkaSuyuan | Shenzhen,Guangdong | Shenzhen,Guangdong | Commercialservice | - | 51.00 | Establishmentorinvestment |
| HainanTechnology | Haikou,Hainan | Haikou,Hainan | Municipalroadengineeringandconstruction | - | 51.00 | Establishmentorinvestment |
| ShengxingEnterprise | Shenzhen,Guangdong | Shenzhen,Guangdong | Commercialservice | - | 51.00 | Establishmentorinvestment |
| IndustrialParkDevelopment | Shenzhen,Guangdong | Shenzhen,Guangdong | Commercialservice | 51.00 | Establishmentorinvestment | |
| ZhitongTechnology | Shenzhen,Guangdong | Shenzhen,Guangdong | Softwareandinformationtechnologyservice | 51.00 | Establishmentorinvestment | |
| Kangjiatong | Yibin,Sichuan | Yibin,Sichuan | Serviceindustry | 51.00 | - | Establishmentorinvestment |
| ElectronicsTechnology | Shenzhen,Guangdong | Shenzhen,Guangdong | Manufacturingindustry | 100.00 | - | Establishmentorinvestment |
| XingDaHongYe | Zhongshan, | Zhongshan, | Manufacturingindustry | - | 51.00 | Establishment |
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| Guangdong | Guangdong | orinvestment | ||||
| ShanghaiXinfeng | Shanghai | Shanghai | Commerce | - | 51.00 | Establishmentorinvestment |
| AnhuiZhilian | Chuzhou,Anhui | Chuzhou,Anhui | Electroniccommerce | - | 100.00 | Establishmentorinvestment |
| NanjingKonka | Nanjing,Jiangsu | Nanjing,Jiangsu | Wholesaleindustry | - | 100.00 | Establishmentorinvestment |
| Youzhihui | Shenzhen,Guangdong | Shenzhen,Guangdong | Softwareandinformationtechnologyserviceindustry | - | 100.00 | Establishmentorinvestment |
| XiaojiaTechnology | Shenzhen,Guangdong | Shenzhen,Guangdong | Retailindustry | - | 100.00 | Establishmentorinvestment |
| HaimenKonka | Nantong,Jiangsu | Nantong,Jiangsu | Wholesaleandretailindustry | 100.00 | Establishmentorinvestment | |
| ChengduKonkaIntelligent | Chengdu,Sichuan | Chengdu,Sichuan | Wholesaleandretailindustry | 100.00 | Establishmentorinvestment | |
| ChengduKonkaElectronic | Chengdu,Sichuan | Chengdu,Sichuan | Manufacturingindustry | 100.00 | Establishmentorinvestment | |
| EconTechnology | Yantai,Shandong | Yantai,Shandong | Environmentaltechnologyserviceindustry | 51.00 | - | Establishmentorinvestment |
| BeijingKangyi | Beijing | Beijing | Environmentaltechnologyserviceindustry | - | 51.00 | Establishmentorinvestment |
| ShanghaiJiyi | Shanghai | Shanghai | Environmentaltechnologyserviceindustry | - | 51.00 | Establishmentorinvestment |
| BinzhouEcon | Binzhou,Shandong | Binzhou,Shandong | Environmentaltechnologyserviceindustry | - | 51.00 | Establishmentorinvestment |
| LairunHoldings | Yantai,Shandong | Yantai,Shandong | Environmentaltechnologyserviceindustry | - | 30.60 | Establishmentorinvestment |
| LairunEnvironmentalProtection | Yantai,Shandong | Yantai,Shandong | Environmentaltechnologyserviceindustry | - | 27.54 | Establishmentorinvestment |
| LaizhouLairunSewageTreatment | Yantai,Shandong | Yantai,Shandong | Environmenalprotectionandenvironmentmanagement | - | 24.14 | Establishmentorinvestment |
| BinhaiSewageTreatment | Yantai,Shandong | Yantai,Shandong | Environmentaltechnologyserviceindustry | - | 30.60 | Establishmentorinvestment |
| EconEnvironmentalEngineering | Chengdu,Sichuan | Chengdu,Sichuan | Environmentaltechnologyserviceindustry | - | 51.00 | Establishmentorinvestment |
| YantaiKangrun | Yantai,Shandong | Qingdao,Shandong | Environmentaltechnologyserviceindustry | - | 51.00 | Establishmentorinvestment |
| RushanYike | Weihai,Shandong | Weihai,Shandong | Environmentaltechnologyserviceindustry | - | 44.37 | Establishmentorinvestment |
| BinzhouWeiyijie | Binzhou,Shandong | Binzhou,Shandong | Environmentaltechnologyservice | - | 35.70 | Establishmentorinvestment |
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| industry | ||||||
| BeihaiJingmai | Binzhou,Shandong | Binzhou,Shandong | Environmentaltechnologyserviceindustry | - | 24.99 | Establishmentorinvestment |
| YantaiChunzhiran | Yantai,Shandong | Yantai,Shandong | Environmentaltechnologyserviceindustry | - | 35.70 | Establishmentorinvestment |
| DonggangKangrun | Dandong,Liaoning | Dandong,Liaoning | Environmentaltechnologyserviceindustry | - | 50.70 | Establishmentorinvestment |
| DayiKangrunWater | Chengdu,Sichuan | Chengdu,Sichuan | Environmentaltechnologyserviceindustry | - | 51.00 | Establishmentorinvestment |
| SubeiKangrunWater | Jiuquan,Gansu | Jiuquan,Gansu | Environmentaltechnologyserviceindustry | - | 39.78 | Establishmentorinvestment |
| SuiningPengxiKangrun | Suining,Sichuan | Suining,Sichuan | Environmentaltechnologyserviceindustry | - | 40.75 | Establishmentorinvestment |
| WeifangSihaiKangrun | Weifang,Shandong | Weifang,Shandong | Environmentaltechnologyserviceindustry | - | 32.09 | Establishmentorinvestment |
| LushanKangrunEnvironmentalProtection | Pingdingshan,Henan | Pingdingshan,Henan | Environmentalprotectionandenvironmentmanagement | - | 45.44 | Establishmentorinvestment |
| FunanKangrunWater | Fuyang,Anhui | Fuyang,Anhui | Environmentalprotectionandenvironmentmanagement | - | 40.55 | Establishmentorinvestment |
| WuhanRunyuanSewageTreatment | Wuhan,Hubei | Wuhan,Hubei | Environmentalprotectionandenvironmentmanagement | 35.70 | Establishmentorinvestment | |
| TongchuanKangrunHonghui | Tongchuan,Shaanxi | Tongchuan,Shaanxi | Environmentalprotectionandenvironmentmanagement | 45.39 | Establishmentorinvestment | |
| TingyuanEnvironmentalProtection | Shanghai | Shanghai | Researchandexperimentaldevelopment | 51.00 | Establishmentorinvestment | |
| BoxingCountyXingkangEnvironmentalProtection | Binzhou,Shandong | Binzhou,Shandong | Environmentalprotectionandenvironmentmanagement | 35.70 | Establishmentorinvestment | |
| YantaiKangyun | Yantai,Shandong | Yantai,Shandong | Commercialservice | 51.00 | Establishmentorinvestment | |
| YantaiLaikang | Yantai,Shandong | Yantai,Shandong | Commercialservice | 51.00 | Establishmentorinvestment | |
| KonkaHuanjia | Dalian,Liaoning | Dalian,Liaoning | Processingofrenewableresources | 51.00 | - | Establishmentorinvestment |
| KonkaHuanjia(Henan) | Lankao,Henan | Lankao,Henan | Technologyextensionandapplicationserviceindustry | - | 51.00 | Establishmentorinvestment |
| ShanghaiKonka | Shanghai | Shanghai | Realestateindustry | 100.00 | - | Establishmentorinvestment |
| YantaiKonka | Yantai, | Yantai, | Realestateindustry | - | 89.71 | Establishment |
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| Enterprise | Shandong | Shandong | orinvestment | |||
| YantaiKangjin | Yantai,Shandong | Yantai,Shandong | Realestateindustry | - | 62.80 | Establishmentorinvestment |
| ShangdongKangxin | Yantai,Shandong | Yantai,Shandong | Realestateindustry | - | 51.00 | Establishmentorinvestment |
| JiangxiKonka | Jiujiang,Jiangxi | Jiujiang,Jiangxi | Production,manufacturingandprocessing | 51.00 | - | Establishmentorinvestment |
| XinfengMicrocrystalline | Nanchang,Jiangxi | Nanchang,Jiangxi | Production,manufacturingandprocessing | - | 51.00 | Establishmentorinvestment |
| Nanocrystalline | Jiujiang,Jiangxi | Jiujiang,Jiangxi | Production,manufacturingandprocessing | - | 51.00 | Establishmentorinvestment |
| ShenzhenNianhua | Shenzhen,Guangdong | Shenzhen,Guangdong | Commercialservice | 100.00 | - | Establishmentorinvestment |
| ShenzhenKangxinwei | Shenzhen,Guangdong | Shenzhen,Guangdong | Semi-conductor | 100.00 | - | Establishmentorinvestment |
| ShenzhenMeixin | Shenzhen,Guangdong | Shenzhen,Guangdong | Commerce | - | 51.00 | Establishmentorinvestment |
| ZhengmaoSemiconductor | Chongqing | Chongqing | Researchandexperimentaldevelopment | - | 51.00 | Establishmentorinvestment |
| HefeiKangxinwei | Hefei,Anhui | Hefei,Anhui | Designofintegratedcircuit | - | 51.00 | Establishmentorinvestment |
| YiheElectronic | Hefei,Anhui | Hefei,Anhui | Wholesaleindustry | - | 51.00 | Establishmentorinvestment |
| ChongqingKonka | Chongqing | Chongqing | Softwareandinformationtechnologyservice | 100.00 | Establishmentorinvestment | |
| ShenzhenHuiyingTechnology | Shenzhen,Guangdong | Shenzhen,Guangdong | Wholesaleindustry | 51.00 | Establishmentorinvestment | |
| ChongqingHuiyingTechnology | Chongqing | Chongqing | Manufacturingindustryincomputer,communicationandotherelectronicequipment | 51.00 | Establishmentorinvestment | |
| KonkanEcologicalDevelopment | Shenzhen,Guangdong | Shenzhen,Guangdong | Commercialservice | 51.00 | - | Establishmentorinvestment |
| KonkaIntegration | Foshan,Guangdong | Foshan,Guangdong | Wholesaleandretailindustry | 51.00 | - | Establishmentorinvestment |
| SuiningKonkaIndustrialPark | Suining,Sichuan | Suining,Sichuan | Industrialparkdevelopmentandoperationmanagement | 100.00 | - | Establishmentorinvestment |
| SuiningElectronicTechnologicalInnovation | Suining,Sichuan | Suining,Sichuan | Commercialservice | 100.00 | - | Establishmentorinvestment |
| DongguanKonkaInvestment | Dongguan,Guandong | Dongguan,Guandong | Commercialservice | 100.00 | - | Establishmentorinvestment |
| ShenzhenChuangzhiAppliances | Shenzhen,Guangdong | Shenzhen,Guangdong | Wholesaleindustry | 100.00 | Establishmentorinvestment | |
| Koanghong(Yantai)Environmental | Yantai,Shandong | Yantai,Shandong | Comprehensiveutilizationofwasteresources | 51.00 | Establishmentorinvestment | |
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| Protection | industry | |||||
| Koanghong(Yantai)EnvironmentalProtectionIndustrialPark | Yantai,Shandong | Yantai,Shandong | Commercialservice | 51.00 | Establishmentorinvestment | |
| ChongqingKangxingrui | Chongqing | Chongqing | Technologyextensionandapplicationserviceindustry | 51.00 | Establishmentorinvestment | |
| ChongqingKonkaPhotoelectricTechnologyResearchInstitute | Chongqing | Chongqing | Researchandexperimentaldevelopment | 75.00 | Establishmentorinvestment | |
| XinyingSemiconductor | Shenzhen,Guangdong | Shenzhen,Guangdong | Manufacturingindustryincomputer,communicationandotherelectronicequipment | 56.00 | Establishmentorinvestment | |
| Jiangkang(Shanghia)Technology | Shanghai | Shanghai | Researchandexperimentaldevelopment | 51.00 | Establishmentorinvestment | |
| ChongqingPropertiesDevelopment | Chongqing | Chongqing | Realestateindustry | 51.00 | Establishmentorinvestment | |
| ChongiqngXingyiProperties | Chongqing | Chongqing | Realestateindustry | 51.00 | Establishmentorinvestment | |
| ChongiqngFuzeProperties | Chongqing | Chongqing | Realestateindustry | 51.00 | Establishmentorinvestment | |
| NingboKanghanruiAppliances | Ningbo,Zhejiang | Ningbo,Zhejiang | Electricalmachineryandequipmentmanufacturing | 60.00 | Establishmentorinvestment | |
| KonkaZhizao | Shenzhen,Guangdong | Shenzhen,Guangdong | Researchandexperimentaldevelopment | 51.00 | Establishmentorinvestment | |
| JaidebaoNewMaterial | Chuzhou,Anhui | Chuzhou,Anhui | Researchandexperimentaldevelopment | 60.00 | Establishmentorinvestment | |
| SuiningJiarunProperties | Suining,Sichuan | Suining,Sichuan | Realestateindustry | 100.00 | Establishmentorinvestment | |
| ChuzhouKangxinHealthIndustry | Chuzhou,Anhui | Chuzhou,Anhui | Commercialservice | 100.00 | Establishmentorinvestment | |
| KangxinglongEnvionmentalProtection | Huangshi,Hubei | Huangshi,Hubei | Environmentalprotectionandenvironmentmanagement | 51.00 | Establishmentorinvestment | |
Note:TheindirectshareholdingoftheCompanyshallbethepenetrationratioofthesubsidiaryenjoyedbytheCompanyattheconsolidationlevel,andbelongstothefinalequityshareofthesubsidiaryenjoyedbytheCompany.
(2)SignificantNon-wholly-ownedSubsidiary
| Name | Shareholdingproportionofnon-controllinginterests(%) | Theprofitorlossattributabletothenon-controllinginterests | Declaringdividendsdistributedtonon-controllinginterests | Balanceofnon-controllinginterestsattheperiod-end |
| Name | Shareholdingproportionofnon-controllinginterests(%) | Theprofitorlossattributabletothenon-controllinginterests | Declaringdividendsdistributedtonon-controllinginterests | Balanceofnon-controllinginterestsattheperiod-end |
| EconTechnology | 49.00% | 101,944,857.45 | 384,787,077.79 | |
| ChainKingdomMemoryTechnology | 49.00% | 28,235,375.07 | 31,855,167.43 | 51,119,888.81 |
(3)TheMainFinancialInformationofSignificantNotWholly-ownedSubsidiary
| Name | Endingbalance | |||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliability | Totalliabilities | |
| EconTechnology | 2,301,862,406.07 | 4,188,510,893.24 | 6,490,373,299.31 | 4,112,410,680.62 | 1,228,550,874.55 | 5,340,961,555.17 |
| ChainKingdomMemoryTechnology | 1,589,255,895.39 | 681,653.19 | 1,589,937,548.58 | 1,485,611,244.88 | 1,485,611,244.88 | |
(Continued)
| Name | Beginningbalance | |||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliability | Totalliabilities | |
| EconTechnology | 863,149,394.35 | 1,923,330,899.07 | 2,786,480,293.42 | 1,950,799,686.15 | 156,350,000.00 | 2,107,149,686.15 |
| ChainKingdomMemoryTechnology | 1,815,121,230.64 | 293,862.12 | 1,815,415,092.76 | 1,739,347,442.71 | 1,739,347,442.71 | |
| Name | ReportingPeriod | |||
| ReportingPeriod | ReportingPeriod | ReportingPeriod | ReportingPeriod | |
| EconTechnology | 2,089,742,540.39 | 257,946,089.57 | 257,946,089.57 | -255,466,347.95 |
| ChainKingdomMemoryTechnology | 7,255,440,615.91 | 57,623,214.42 | 60,113,821.08 | -3,025,942.67 |
(Continued)
| Name | SamePeriodoflastyear | |||
| Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
| EconTechnology | 1,097,227,129.62 | 143,368,372.61 | 143,368,372.61 | 26,365,193.10 |
| ChainKingdomMemoryTechnology | 9,093,158,938.89 | 44,048,413.75 | 44,048,413.75 | 134,780,094.30 |
2.InfluenceofChangesintheOwner’sEquityShareinSubsidiary
On18May2019,theCompanysignedtheAgreementofCapitalIncreaseofEquitywith
Alibaba,whichRMB31,666,666.66ofAlibabaasconsiderationtosubscribethenewlyincreasedregisteredcapitalofE2infowithRMB174,070.81,andtheretainedcapitalofRMB31,492,595.85wasaccountedintocapitalreserveofE2info,whiletheCompanydidn’tincreasecapitalsynchronously.Afterthecompletionoftheabovecapitalincrease,theCompany’sshareholdingratioinE2infowas95.7766%anditstillbecontrolledbytheCompanyandisstillincludedinthescopeofconsolidation.
| Item | E2info |
| Cash | 31,666,666.66 |
| Fairvalueofnon-monetaryassets | - |
| - | |
| Totalofdisposalconsideration | 31,666,666.66 |
| Less:Shareofnetassetsaccountedbypercentageofstockrightsdisposed | 174,070.81 |
| Difference | 31,492,595.85 |
| Ofwhich:Adjustmentofcapitalreserves | 31,492,595.85 |
| Adjustmentofsurplusreserve | - |
| Adjustmentofretainedearnings | - |
3.EquityinJointVenturesorAssociatedEnterprises
(1)SignificantJointVenturesorAssociatedEnterprises
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Accountingtreatmentoftheinvestmenttojoint | |
| Directly | Indirectly | |||||
| DongfangKonkaNo.1(Zhuhai)PrivateEquityInvestmentFund(LP) | Zhuhai | Zhuhai | Investmentmanagement | 49.95 | - | Equitymethod |
| BinzhouBeihaiWeiqiaoSolidWasteDisposalCo.,Ltd. | Binzhou | Binzhou | Environmentalprotectionandenvironmentalmanagement | 49.00 | - | Equitymethod |
(2)MainFinancialInformationofSignificantAssociatedEnterprise
| Item | Endingbalance/ReportingPeriod | |
| DongfangKonkaNo.1(Zhuhai)PrivateEquityInvestmentFund(LP) | BinzhouBeihaiWeiqiaoSolidWasteDisposalCo.,Ltd. | |
| Currentassets | 632,869,229.53 | 168,736,029.14 |
| Non-currentassets | 182,046,220.08 | |
| Totalassets | 632,869,229.53 | 350,782,249.22 |
| Currentliabilities | 44,259,288.94 | 72,613,343.21 |
| Non-currentliability | - | - |
| Totalliabilities | 44,259,288.94 | 72,613,343.21 |
| Equityofnon-controllinginterests | ||
| EquityattributabletoshareholdersoftheCompanyastheparent | 588,609,940.59 | 278,168,906.01 |
| Shareofnetassetsaccountedbyshareholdingpercentage | 294,010,665.32 | 136,302,763.94 |
| Carryingvalueofequityinvestmenttoassociatedenterprises | 294,010,665.32 | 136,302,763.94 |
| Operatingrevenue | - | 291,745,561.77 |
| Financecosts | -12,631.40 | 420,534.06 |
| Incometaxexpense | 344,172.57 | - |
| Item | Endingbalance/ReportingPeriod | |
| DongfangKonkaNo.1(Zhuhai)PrivateEquityInvestmentFund(LP) | BinzhouBeihaiWeiqiaoSolidWasteDisposalCo.,Ltd. | |
| Netprofit | 94,882,517.71 | 201,212,689.88 |
| Netprofitfromdiscontinuedoperations | ||
| Othercomprehensiveincome | ||
| Totalcomprehensiveincome | 94,882,517.71 | 201,212,689.88 |
(Continued)
| Item | Beginningbalance/Sameperiodoflastyear | |
| DongfangKonkaNo.1(Zhuhai)PrivateEquityInvestmentFund(LP) | BinzhouBeihaiWeiqiaoSolidWasteDisposalCo.,Ltd. | |
| Currentassets | 318,856,880.10 | 25,910,911.78 |
| Non-currentassets | - | 156,839,084.49 |
| Totalassets | 318,856,880.10 | 182,749,996.27 |
| Currentliabilities | 150,580.00 | 55,793,780.14 |
| Non-currentliability | - | - |
| Totalliabilities | 150,580.00 | 55,793,780.14 |
| Equityofnon-controllinginterests | ||
| EquityattributabletoshareholdersoftheCompanyastheparent | 318,706,300.10 | 126,956,216.13 |
| Shareofnetassetsaccountedbyshareholdingpercentage | 159,193,796.90 | 62,208,545.90 |
| Carryingvalueofequityinvestmenttoassociatedenterprises | 159,193,796.90 | 62,208,545.90 |
| Operatingrevenue | ||
| Financecosts | -54,510.01 | -83,342.50 |
| Item | Beginningbalance/Sameperiodoflastyear | |
| DongfangKonkaNo.1(Zhuhai)PrivateEquityInvestmentFund(LP) | BinzhouBeihaiWeiqiaoSolidWasteDisposalCo.,Ltd. | |
| Incometaxexpense | ||
| Netprofit | -1,446,259.90 | -10,621,176.06 |
| Netprofitfromdiscontinuedoperations | ||
| Othercomprehensiveincome | ||
| Totalcomprehensiveincome | -1,446,259.90 | -10,621,176.06 |
(3)SummaryFinancialInformationofInsignificantJointVenturesorAssociatedEnterprises
| Item | Endingbalance/ReportingPeriod | Beginningbalance/Thesameperiodoflastyear |
| Associatedenterprise: | ||
| Totalcarryingvalueofinvestment | 3,249,236,533.91 | 901,074,598.59 |
| Thetotaloffollowingitemsaccordingtotheshareholdingproportions | ||
| --Netprofit | 431,670.21 | -24,999,046.40 |
| --Othercomprehensiveincome | -335,456.79 | 740,697.08 |
| --Totalcomprehensiveincome | 96,213.42 | -24,258,349.32 |
IX.TheRiskRelatedtoFinancialInstruments
TheCompany’smainfinancialinstrumentsincludeborrowings,accountsreceivable,accountspayable,tradingfinancialassetsandliabilities,etc.DetailsofthevariousfinancialinstrumentsareshownintherelevantnotestoAnnotationVI.Risksrelatedtothesefinancialinstruments,andriskmanagementpoliciestheCompanyhasadoptedtoreducetheserisksaredescribedasfollows.TheCompanymanagementmanagesandmonitorstheriskexposureinordertoensuretheaboveriskstobecontrolledinalimitedscope.ThegoalsoftheCompanyengagedintheriskmanagementistoachievetheproperbalancebetween
therisksandbenefits,reducedthenegativeimpacttotheCompanyoperatingperformancerisktoaminimum,maximizedtheprofitsofshareholdersandotherequityinvestors.Basedontheriskmanagementgoal,thebasicstrategyoftheCompany'sriskmanagementisdetermineandanalyzethevariousrisksfacedbytheCompany,setupthebottomlineofriskandconductedappropriateriskmanagement,andtimelysupervisedvariousrisksinareliablewayandcontrolledtheriskwithintherangeoflimit.
1.MarketRisk
1)ForeignExchangeRiskForeignexchangeriskreferstotherisksthatmayleadtolossesduetofluctuationinexchangerate.TheforeignexchangeriskbornebytheCompanyisrelatedtoUSD.ExcepttheprocurementandsalesbyUSdollarsforseveralsubsidiariesoftheCompany,theothermainbusinessesoftheCompanyweresettledbyRMB.Asof31December2019,exceptfortheassetsorliabilitiesmentionedinthetablebelow,theassetsandliabilitiesoftheCompanyaremainlythebalanceofRMB.TheforeignexchangerisksproducedbytheassetsandliabilitiesbalancemayaffectthebusinessperformanceoftheCompany.
| Item | Period-end | Period-begin |
| Cashandcashequivalents | 161,346,670.90 | 135,723,407.43 |
| Accountsreceivable | 118,602,602.84 | 130,507,627.96 |
| Otherreceivables | 6,281,335.37 | 13,848,369.43 |
| Short-termborrowings | 98,297,903.18 | 208,330,389.67 |
| Accountspayable | 42,269,219.38 | 21,644,634.75 |
| Interestpayable | 275,923.30 | 1,302,303.49 |
Thecompanypayscloseattentiontotheimpactofexchangeratechangesonthecompany'sforeignexchangerisk,andrequiresmajorcompaniesinthegroupthatpurchaseandsellinforeigncurrencytopayattentiontothechangesinforeigncurrencyassetsandliabilities,managethegroup'sforeigncurrencynetassetexposureinaunifiedway,implementsinglecurrencysettlement,andreducethescaleofforeigncurrencyassetsandliabilities,soastoreduceforeignexchangeriskexposure.Undertheconditionthatothervariablesremainunchanged,thepossiblereasonablechangeofexchangeratehasthefollowingpretaximpactonthecurrentprofitandlossandshareholders'equity:
| Item | Changeininterestrate | Influenceonshareholders’equity |
| NetassetsinUSD | Up1.00%toRMB | 7,606,895.39 |
| NetassetsinUSD | Down1.00%toRMB | -7,606,895.39 |
2)InterestRateRisk-CashFlowChangeRiskThecompanybearsinterestrateriskduetointerestratechangesofinterestbearingfinancialassetsandliabilities.Thecompany'sinterestbearingfinancialassetsaremainlybankdeposits,ofwhichthevariableinterestrateismostlyshort-term,whiletheinterestbearingfinancialliabilitiesaremainlybankloansandcorporatebonds.OnDecember31,2019,thecompany'slong-termbankborrowingsandcorporatebondsarefixedinterestrates.Therefore,itisconsideredthattheriskcausedbythechangeofinterestrateismainlyrelatedtotheshort-termbankborrowings.OnDecember31,2019,thebalanceofsuchshort-termborrowingsis10332687239.63yuan.OnDecember31,2019,iftheinterestrateofshort-termborrowingsofsuchscalerisesorfallsby50basispointswhileotherfactorsremainunchanged,thegroup'snetprofitwilldecreaseorincreasebyabout51663436.20yuan.OnDecember31,2019,thecompany'sbankborrowingsarefixedinterestrates,soanychangeininterestratesisnotconsideredtohaveasignificantimpactonthecompany'sperformance.
2.CreditRiskCreditriskreferstotheriskoffinanciallossincurredbythegroupduetothefailureofcustomersorcounterpartiesoffinancialinstrumentstofulfilltheircontractualresponsibilities.Therelevantrisksmainlycomefrombankbalances,receivablesandotherreceivables,aswellasfinancialinstruments.Thecompany'sworkingcapitalisdepositedinbankswithhighcreditrating,sothecreditriskofworkingcapitalislow.Forfinancialinstrumentsmeasuredatfairvalue,thebookvaluereflectstheirriskexposure,butnotthemaximumriskexposure,andthemaximumriskexposurewillchangewiththechangeoffuturefairvalue.Inordertoreducecreditrisk,thecompanyhassetupagrouptodeterminethecreditlimit,conductcreditapproval,andimplementothermonitoringprocedurestoensurethatnecessarymeasuresaretakentorecoveroverdueclaims.Inaddition,thecompanyreviewstherecoveryofeachsinglereceivableoneachbalancesheetdatetoensurethatsufficientbaddebtprovisionismadefortheunrecoverableamount.Therefore,thecompany'smanagementbelievesthatthecompany'screditriskhasbeengreatlyreduced.
(1)Attheendoftheperiod,therearenooverduefinancialassetsthathavenotbeenimpaired.
(2)SeenoteVI,4,accountsreceivableandnoteVI,7,otherreceivablesfordetailsoffinancialassetswithsingleimpairment
3.LiquidityRiskIntermsofmanagementofliquidityrisk,thecompanymonitorsandmaintainsthecashandcashequivalentsataleveldeemedsufficientbythemanagementtoprovidefundsforthecompany's
operationandmitigatetheimpactofshort-termfluctuationsincashflow.Thefinancialdepartmentofthecompanyisresponsibleforbalancingthecontinuityandflexibilityoffundsthroughtheuseofbankcredittomeettheneedsofthecompany'sworkingcapital.Inordertomitigatetheliquidityrisk,themanagementofthecompanyhascarriedoutadetailedinspectionontheliquidityofthecompany,includingthematurityofaccountspayableandotherpayables,bankcreditlineandbondfinancing.Theconclusionisthatthecompanyhassufficientfundstomeettheneedsofthegroup'sshort-termdebtandcapitalexpenditure.X.TheDisclosureofFairValue
1.EndingFairValueofAssetsandLiabilitiesatFairValue
| Item | Endingfairvalue | |||
| Fairvaluemeasurementitemsatlevel1 | Fairvaluemeasurementitemsatlevel2 | Fairvaluemeasurementitemsatlevel3 | Total | |
| I.Consistentfairvaluemeasurement | — | — | — | — |
| (I)Tradingfinancialassets | 61,494,666.97 | 61,494,666.97 | ||
| 1.Financialassetsatfairvaluethroughprofitorloss | 61,494,666.97 | 61,494,666.97 | ||
| (1)Debtinstrumentinvestment | ||||
| (2)Equityinstrumentinvestment | 61,494,666.97 | 61,494,666.97 | ||
| (3)Derivativefinancialassets | ||||
| (4)Other | ||||
| (II)Accountsreceivablefinancing | 143,174,271.82 | 143,174,271.82 | ||
| (III)Investmentinotherdebtobligations | ||||
| (IV)Otherequityinstrumentinvestment | 21,642,170.36 | 21,642,170.36 | ||
| (V)Othernon-currentfinancialassets | 1,753,121,727.83 | 1,753,121,727.83 | ||
| Totalassetsofconsistentfairvaluemeasurement | 204,668,938.79 | 1,774,763,898.19 | 1,979,432,836.989 | |
| Totalliabilitiesofconsistentfairvaluemeasurement | ||||
| (II)Inconsistentfairvaluemeasurement | - | - | - | - |
| Item | Endingfairvalue | |||
| Fairvaluemeasurementitemsatlevel1 | Fairvaluemeasurementitemsatlevel2 | Fairvaluemeasurementitemsatlevel3 | Total | |
| Totalassetsofinconsistentfairvaluemeasurement | ||||
| Totalliabilitiesofinconsistentfairvaluemeasurement | ||||
2.ValuationTechniqueAdoptedandNatureandAmountDeterminationofImportantParametersforConsistentandInconsistentFairValueMeasurementItemsatLevel2Theinputvalueobservabledirectlyorindirectlyofrelevantasstsorliabilitiesexclusiveofinputvalueatlevel1.
3.ValuationTechniqueAdoptedandNatureandAmountDeterminationofImportantParametersforConsistentandInconsistentFairValueMeasurementItemsatLevel3Valuationtechniqueadoptedandnatureandamountdeterminationofimportantparametersforconsistentandinconsistentfairvaluemeasurementitemsatlevel3.Asfortheunlistedequityinstrumentinvestment,underthecomprehensiveconsiderationoftheCompany,theCompanyestimatestheendingfairvaluebyadoptingtheinvestmentcostmethod,marketmultipliermethodandnetassetsmethod.TheCompanybelievesthatthefairvalueandchangesestimatedbyvaluationtechniquearereasonableandisthemostappropriatevalueforthebalancesheetdate.XI.RelatedPartyandRelated-partyTransaction
(I)RelationshipofRelatedParty
1.ControllingShareholderandtheUltimateController
(1)ControllingShareholderandtheUltimateController
| Name | Registrationplace | Nature | Registeredcapital | ShareholdingratiototheCompany(%) | VotingrightratiototheCompany(%) |
| Name | Registrationplace | Nature | Registeredcapital | ShareholdingratiototheCompany(%) | VotingrightratiototheCompany(%) |
| OCTGroupCo.,Ltd. | Shenzhen | Tourism,realestate,electronicsindustry | RMB12billion | 29.999997 | 29.999997 |
TheultimatecontrolleroftheCompanyisState-ownedAssetsSupervisorCommissionoftheStateCouncil.
2.SubsidiaryRefertonoteVIII-1(1)Subsidiariesfortheinformationofsubsidiaries.
3.AssociatedEnterprisesandJointVenturesRefertoNoteVIII-3.(1)SignificantAssociatedEnterprisesfordetailsofsignificantassociatedenterprisesoftheCompany.InformationonotherjointventuresorassociatedenterprisesoccurringconnectedtransactionswiththeCompanyinReportingPeriod,orformingbalanceduetoconnectedtransactionsmadeinpreviousperiod:
| Name | RelationshipwiththeCompany |
| ShenzhenYaodeTechnologyCo.,Ltd. | Associatedenterprise |
| ShenzhenJielunteTechnologyCo.,Ltd. | Associatedenterprise |
| ShenzhenKonkaE-displayCommercialDisplayCo.,Ltd. | Associatedenterprise |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | Associatedenterprise |
| KunshanKonkaElectronicsCo.Ltd. | Associatedenterprise |
| AnhuiKaikaiSihjieE-commerceCo.,Ltd. | Associatedenterprise |
| PuchuangJiakangTechnologyCo,Ltd. | Associatedenterprise |
| FeidiTechnology(Shenzhen)Co.,Ltd. | Associatedenterprise |
| ShenzhenXiaoruiTechnologyCo.,Ltd | Associatedenterprise |
| ShandongKonkaSmartElectricalApplianceCo.,Ltd. | Associatedenterprise |
| HenanKonkaSmartElectricalApplianceCo.,Ltd. | Associatedenterprise |
| HeilongjiangLongkangSmartElectricalApplianceCo.,Ltd. | Associatedenterprise |
4.InformationonOtherRelatedParties
| Name | RelationshipwiththeCompany |
| Name | RelationshipwiththeCompany |
| HOHOELECTRICAL&FURNITURECO | Minorityshareholderofsubsidiary |
| HuanjiaGroupCo.,Ltd | Minorityshareholderofsubsidiary |
| ShenzhenLianheLifengSupplyChainManagementCo.,Ltd | Minorityshareholderofsubsidiary |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | Minorityshareholderofsubsidiary |
| ShenzhenTradeLinkSupplyChainManagementCo.,Ltd. | Minorityshareholderofsubsidiary |
| AUJETINDUSTRYLIMITED | Minorityshareholderofsubsidiary |
| ShenzhenJinzhuIndustryCo.,Ltd | Minorityshareholderofsubsidiary |
| Unifortune(HongKong)Co.,Ltd. | Companiescontrolledbyminorityshareholdersofsubsidiaries |
| HaiyingTechnologyGroup(HongKong)Co.,Ltd. | Thecompanycontrolledbytheultimatecontrolleroftheminorityshareholdersofthesubsidiary |
| JiangxiMeijiEnterpriseCo.,Ltd. | Thecompanycontrolledbytheultimatecontrolleroftheminorityshareholdersofthesubsidiary |
| HuJiawen | Familymemberwithcloserelationshipofminorityshareholder |
(II)Related-partyTransactions
1.Relatedtransactionsofpurchaseandsaleofgoods,provisionandacceptanceofservices
(1)Informationonacquisitionofgoodsandreceptionoflaborservice
| Relatedparty | Content | ReportingPeriod | SamePeriodoflastyear | |
| HaiyingTechnologyGroup(HongKong)Co.,Ltd. | Purchaseofgoods | 1,816,674,632.68 | - | |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | Purchaseofgoods | 966,302,431.62 | 34,645,938.39 | |
| HuanjiaGroupCo.,Ltd. | Purchaseofgoods | 434,647,381.86 | - | |
| ShenzhenJielunteTechnologyCo.,Ltd.anditssubsidiaries | Purchaseofgoods | 163,434,289.73 | 252,684,205.47 | |
| ShenzhenTradeLinkSupplyChainManagementCo.,Ltd. | Purchaseofgoods | 146,267,088.53 | 126,942,856.71 | |
| PuchuangJiakangTechnologyCo,Ltd. | Purchaseofgoods | 48,793,853.67 | - | |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | Purchaseofgoods | 31,244,486.68 | 308,196,919.63 | |
| ShenzhenJinzhuIndustryCo.,Ltd | Purchaseofgoods | 29,039,118.22 | - | |
| AnhuiKaikaiSihjieE-commerceCo.,Ltd. | Purchaseofgoods | 23,713,758.38 | 19,313,938.76 | |
| OCTGroupCo.Ltd.anditssubsidiaries | Purchaseofgoods | 19,021,005.05 | 23,908,088.67 | |
| KunshanKonkaElectronicsCo.Ltd. | Purchaseofgoods | 5,787,467.53 | 1,354,373,188.51 |
| Subtotalofotherrelatedparties | Purchaseofgoodsandservices | 22,702,314.29 | 11,716,912.61 |
(2)Informationofsalesofgoodsandprovisionoflaborservice
| Relatedparty | Content | ReportingPeriod | SamePeriodoflastyear |
| AnhuiKaikaiSihjieE-commerceCo.,Ltd. | Salesofgoodsandrenderlaborservice | 582,052,622.44 | 535,105,654.15 |
| ShenzhenYaodeTechnologyCo.,Ltd. | Salesofgoods | 372,927,101.60 | 52,989,502.78 |
| AUJETINDUSTRYLIMITED | Salesofgoods | 245,808,684.12 | 3,737,481,105.58 |
| OCTGroupCo.Ltdanditssubsidiariesandassociatedenterprises | Salesofgoodsandrenderlaborservice | 127,353,778.04 | 39,022,487.44 |
| ShandongKonkaSmartElectricalApplianceCo.,Ltd. | Salesofgoods | 76,954,416.15 | |
| HOHOELECTRICAL&FURNITURECO.,LIMITED | Salesofgoods | 56,895,724.52 | |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | Salesofgoods | 42,844,475.34 | |
| HenanKonkaSmartElectricalApplianceCo.,Ltd. | Salesofgoods | 39,294,628.59 | |
| ShenhzhenTradeLinkSupplyChainManagementCo.,Ltd. | Salesofgoodsandrenderlaborservice | 28,711,000.66 | 11,184,129.94 |
| ShenzhenJielunteTechnologyCo.,Ltd.anditssubsidiaries | Salesofgoodsandrenderlaborservice | 22,467,519.24 | 18,912,690.58 |
| ShenzhenKonkaE-displayCommercialDisplayCo.,Ltd. | Salesofgoodsandrenderlaborservice | 19,335,967.50 | |
| HeilongjiangLongkangSmartElectricalApplianceCo.,Ltd. | Salesofgoods | 17,497,025.47 | 15,030,200.64 |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | Salesofgoodsandrenderlaborservice | 4,350,063.13 | 123,961,973.02 |
| KunshanKonkaElectricalCo.Ltd. | Salesofgoodsandrenderlaborservice | 2,182,486.57 | 922,322,152.50 |
| Unifortune(HongKong)Co.,Ltd. | Salesofgoods | 3,595,163,483.38 | |
| Subtotalofotherrelatedparties | Salesofgoodsandrenderlaborservice | 6,238,691.36 | 16,809,695.55 |
2.InformationonRelated-partyLease
| Leasee | Category | TheleasefeeconfirmedintheReporting | Theleasefeeconfirmedinthesameperiodoflastyear |
| OCTGroupCo.Ltd.Anditssubsidiaries | Commercialresidentialbuildingsandofficebuildings | 1,640,143.78 | 1,541,573.44 |
3.InformationonRelated-partyGuarantee
(1)TheCompanywasguarantor
| Securedparty | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| AnhuiTongchuang | 3,200.00 | CNY | 2019-8-1 | 2020-8-1 | Not |
| AnhuiTongchuang | 5,000.00 | CNY | 2019-11-7 | 2020-10-9 | Not |
| AnhuiTongchuang | 3,330.00 | CNY | 2019-12-25 | 2020-12-25 | Not |
| AnhuiTongchuang | 2,964.50 | CNY | 2019-1-23 | 2020-1-23 | Not |
| AnhuiTongchuang | 2,376.00 | CNY | 2019-6-24 | 2020-6-24 | Not |
| AnhuiTongchuang | 1,200.00 | CNY | 2019-11-5 | 2020-11-4 | Not |
| AnhuiKonka | 10,000.00 | CNY | 2018-12-6 | 2020-6-2 | Not |
| AnhuiKonka | 21,788.00 | CNY | 2019-7-31 | 2020-7-31 | Not |
| AnhuiKonka | 8,000.00 | CNY | 2019-8-19 | 2020-7-29 | Not |
| HongKongKonka | 2,300.00 | USD | 2019-3-13 | 2020-3-13 | Not |
| HongKongKonka | 1,500.00 | USD | 2019-8-7 | 2020-8-7 | Not |
| HongKongKonka | 1,350.00 | USD | 2019-7-18 | 2020-8-3 | Not |
| HongKongKonka | 1,345.00 | USD | 2019-11-15 | 2020-12-5 | Not |
| BoluoKonkaPrecision | 1,674.75 | CNY | 2019-2-20 | 2021-2-20 | Not |
| SichuanKonka | 4,000.00 | CNY | 2019-3-18 | 2022-3-17 | Not |
| SichuanKonka | 10,000.00 | CNY | 2018-5-28 | 2025-5-24 | Not |
| ElectronicsTechnology | 39,863.95 | CNY | 2019-4-18 | 2020-4-18 | Not |
| Securedparty | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| ElectronicsTechnology | 3,954.13 | CNY | 2019-6-20 | 2020-5-17 | Not |
| DongguanKonka | 2,000.00 | CNY | 2019-11-8 | 2024-11-10 | Not |
| AnhuiElectricalAppliance | 13,000.00 | CNY | 2019-2-2 | 2024-2-2 | Not |
| XingDaHongYe | 5,800.00 | CNY | 2018-11-21 | 2020-11-21 | Not |
| XingDaHongYe | 4,000.00 | CNY | 2019-4-19 | 2020-4-18 | Not |
| XingDaHongYe | 1,000.00 | CNY | 2019-5-20 | 2020-5-19 | Not |
| XingDaHongYe | 2,500.00 | CNY | 2019-12-9 | 2022-6-9 | Not |
| XingDaHongYe | 950.00 | CNY | 2018-11-13 | 2020/11/13 | Not |
| EconTechnology | 2,000.00 | CNY | 2019-4-23 | 2020-4-22 | Not |
| EconTechnology | 5,000.00 | CNY | 2019-5-13 | 2020-5-12 | Not |
| EconTechnology | 3,000.00 | CNY | 2019-6-5 | 2020-6-5 | Not |
| EconTechnology | 3,000.00 | CNY | 2019-10-28 | 2020-10-27 | Not |
| YibinOCTSanjiangPropertiesCo.,Ltd. | 58.00 | CNY | 2019-9-29 | 2022-9-28 | Not |
| JiangxiKonka | 10,000.00 | CNY | 2018-12-4 | 2020-12-23 | Not |
| JiangxiKonka | 5,000.00 | CNY | 2018-12-7 | 2020-4-17 | Not |
| JiangxiKonka | 5,000.00 | CNY | 2018-12-7 | 2020-12-4 | Not |
| JiangxiKonka | 11,900.00 | CNY | 2019-3-18 | 2021-9-18 | Not |
| JiangxiKonka | 10,000.00 | CNY | 2019-2-28 | 2020-2-28 | Not |
| JiangxiKonka | 5,000.00 | CNY | 2019-6-27 | 2020-6-24 | Not |
| JiangxiKonka | 6,500.00 | CNY | 2019-10-30 | 2022-10-30 | Not |
| JiangxiKonka | 5,500.00 | CNY | 2019-6-26 | 2022-6-25 | Not |
| RushaYike | 13,396.00 | CNY | 2016-12-29 | 2026-12-28 | Not |
| NanoCrystallizedGlass | 10,000.00 | CNY | 2019-6-26 | 2022-6-25 | Not |
| NanoCrystallizedGlass | 5,000.00 | CNY | 2019-12-20 | 2022-12-20 | Not |
| XinfengMicrocrystalline | 6,000.00 | CNY | 2019-6-19 | 2020-6-18 | Not |
| PengrunTechnology | 1,500.00 | CNY | 2019-8-21 | 2020-8-20 | Not |
(2)TheCompanywassecuredparty
| Guarantor: | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| OCTGroupCo.Ltd. | 3,429.19 | CNY | 2019-11-8 | 2024-11-8 | Not |
| OCTGroupCo.Ltd.(Note①) | 100,000.00 | CNY | 2019-1-14 | 2022-1-14 | Not |
| OCTGroupCo.Ltd.(Note①) | 150,000.00 | CNY | 2019-1-14 | 2022-1-14 | Not |
| OCTGroupCo.Ltd.(Note①) | 50,000.00 | CNY | 2019-6-3 | 2022-6-3 | Not |
| OCTGroupCo.Ltd.(Note①) | 50,000.00 | CNY | 2019-6-3 | 2022-6-3 | Not |
| OCTGroupCo.Ltd.(Note①) | 80,000.00 | CNY | 2019-7-22 | 2022-7-22 | Not |
| OCTGroupCo.Ltd.(Note①) | 70,000.00 | CNY | 2019-7-22 | 2022-7-22 | Not |
| HunanWanrongEquityInvestmentCo.,Ltd. | 2,000.00 | CNY | 2017-3-16 | 2020-3-15 | Not |
| HuanjiaGroupCo.,Ltd. | 24,500.00 | CNY | 2019-8-8 | 2020-8-7 | Not |
| HuanjiaGroupCo.,Ltd. | 49,000.00 | CNY | 2019-1-8 | 2020-1-7 | Not |
| HuanjiaGroupCo.,Ltd.,DalianJinshunjieMaterialsRecoveryCo.Ltd.,DalianXinjieRenewableResourcesCo.,Ltd.,HenanXinchengRenewableResourcesRecoveryCo.,Ltd.,etc.WangRRenping | 85,000.00 | CNY | 2019-6-1 | 2020-5-31 | Not |
| ShenzhenMeixinqiTechnologyPartnershi(LP) | 7,350.00 | CNY | 2019-1-29 | 2020-1-28 | Not |
| ShenzhenHenglongtongEclectronicsTechnologyCo.,Ltd. | 26,764.00 | CNY | 2019-5-13 | 2020-4-20 | Not |
| ShenzhenMusenEnterpriseCo.,Ltd. | 30,000.00 | CNY | 2019-3-19 | 2020-3-18 | Not |
| ShenzhenGuoxinMicro-electronicsCo.,Ltd. | 8,900.00 | CNY | 2019-8-22 | 2020-8-21 | Not |
| YudongEnvironmentalProtectionTechnologyCo.,Ltd. | 14,700.00 | CNY | 2019-9-10 | 2020-9-9 | Not |
| YuanShengxiang | 14,700.00 | CNY | 2019-9-10 | 2020-9-9 | Not |
| ShenzhenGuoxinMicro-electronicsCo.,Ltd. | 15,000.00 | CNY | 2019-12-10 | 2020-12-9 | Not |
| KonkaVenturesDevelopment(Shenzhen)Co.,Ltd. | 5,508.30 | CNY | 2019-12-16 | 2020-12-15 | Not |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | 13,000.00 | CNY | 2019-2-2 | 2024-2-2 | Not |
| ChuzhouHanshangElectricAppliance | 25,000.00 | CNY | 2019-5-22 | 2020-5-21 | Not |
| Guarantor: | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| Co.,Ltd. | |||||
| GuizhouHuajinrunTechnologyCo.Ltd. | 26,764.00 | CNY | 2019-5-13 | 2020-4-20 | Not |
| ChuzhouState-ownedAssetsManagementCo.Ltd. | 2,200.00 | CNY | 2019-12-2 | 2020-6-2 | Not |
| YantaiBaijiangyuanBusinessManagementCenter(LP) | 15,697.17 | CNY | 2019-4-23 | 2020-12-19 | Not |
| YantaiFengqingtaiInvestmentCenter(LP) | 6,980.55 | CNY | 2019-4-23 | 2020-12-19 | Not |
| YantaiQingjiangchuanBusinessManagementCenter(LP) | 446.08 | CNY | 2019-4-23 | 2020-12-19 | Not |
| YantaiQingrunyuanBusinessManagementCenter(LP) | 6,413.89 | CNY | 2019-4-23 | 2020-12-19 | Not |
| ChuzhouState-ownedAssetsManagementCo.,Ltd. | 2,200.00 | CNY | 2019-12-2 | 2020-6-2 | Not |
| HuZehong | 9,467.38 | CNY | 2018-7-1 | 2021-6-30 | Not |
| HuZehong | 129.38 | CNY | 2018-7-1 | 2021-6-30 | Not |
| LiChunsehng | 129.38 | CNY | 2018-7-1 | 2021-6-30 | Not |
| DaiYaojin | 129.38 | CNY | 2018-7-1 | 2021-6-30 | Not |
| LiangRuIling | 129.38 | CNY | 2018-7-1 | 2021-6-30 | Not |
| HuZehong | 2,450.00 | CNY | 2019-4-22 | 2020-4-21 | Not |
| HuZehong | 1,470.00 | CNY | 2019-11-8 | 2020-11-7 | Not |
| HuZehong | 465.20 | CNY | 2018-11-13 | 2020-11-13 | Not |
| HuZehong | 1,225.00 | CNY | 2019-12-9 | 2022-6-9 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd. | 2,940.00 | CNY | 2019-6-19 | 2020-6-18 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd. | 2,450.00 | CNY | 2019-6-27 | 2020-6-24 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd. | 5,860.69 | CNY | 2019-3-18 | 2021-9-18 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd. | 4,900.00 | CNY | 2019-2-28 | 2020-2-28 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd. | 5,880.00 | CNY | 2019-8-27 | 2022-10-30 | Not |
| ZhuXinming | 19,600.00 | CNY | 2019-10-15 | 2020-10-14 | Not |
| ZhuXinming | 4,900.00 | CNY | 2018-12-4 | 2020-12-23 | Not |
| Guarantor: | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| ZhuXinming | 4,900.00 | CNY | 2018-12-7 | 2020-12-5 | Not |
| ZhuXinming | 2,450.00 | CNY | 2019-12-20 | 2022-12-20 | Not |
| 4,900.00 | CNY | 2018-12-4 | 2020-12-23 | ||
| JiangxiXinzixinRealEstateCo.,Ltd. | 4,900.00 | CNY | 2018-12-7 | 2020-12-5 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd. | 2,450.00 | CNY | 2019-12-20 | 2022-12-20 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd. | 4,900.00 | CNY | 2019-7-7 | 2020-7-1 | |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuQingming,XiongMuzhi,ZengXiaohong,ZhuChengfu | 7,350.00 | USD | 2018-5-17 | 2020-10-31 | Not |
| AUJETINDUSTRYLIMITED | 4,900.00 | USD | 2018-9-27 | 2020-10-31 | Not |
| ShenzhenTradeLinkSupplyChainManagementCo.Ltd. | 15,000.00 | USD | 2018-8-21 | 2022-12-31 | Not |
| WuGuorenandXiaoYongsong | 3,000.00 | USD | 2019-1-1 | 2022-12-31 | Not |
| WuGuorenandXiaoYongsong | 1,715.00 | USD | 2018-1-1 | 2022-4-20 | Not |
| GuizhouHuajinrunTechnologyCo.Ltd. | 2,940.00 | USD | 2018-1-1 | 2023-6-30 | Not |
| ShenzhenUnifortuneSupplyChainManagementCo.,Ltd. | 1,470.00 | USD | 2018-9-19 | 2023-6-30 | Not |
| ShenzhenUnifortuneSupplyChainManagementCo.,Ltd. | 15,000.00 | CNY | 2019-9-26 | 2020-9-25 | Not |
| ElectronicsTechnology | 50,000.00 | CNY | 2019-9-27 | 2020-9-26 | Not |
| ElectronicsTechnology | 50,000.00 | CNY | 2019-9-27 | 2020-9-26 | Not |
Note:①TheCompanyhasissuedprivatecorporatebondswithfacevalueofRMB5,000,000,000.00,andtheprincipleandinterestoftheabovebondswerejointliabilityprovidedbyOCTGroupCo.,Ltd.Note:TheCompanywasprovidedwithcounterguaranteeregardingentrustedloansfromtheCompanytocontrolledsubsidiariesbyminorityshareholdersofaforesaidcontrolledsubsidiaries.
4.BorrowingsofFunds
| Name | Amount(RMB’0,000) | Startdate | Duedate | Duration | Interest |
| Borrowing | |||||
| OCTGroupCo.Ltd. | 150,000.00 | 2019-10-25 | 2022-10-23 | 2019-10-25至2022-10-23 | 4.06% |
| OCTGroupCo.Ltd. | 93,406.00 | 2019-11-13 | 2022-11-6 | 2019-11-13至2022-11-6 | 4.14% |
| OCTGroupCo.Ltd. | 90,000.00 | 2019-12-11 | 2022-12-9 | 2019-12-11至2022-12-9 | 3.93% |
| ShenzhenRenjianhuahaiEnvironmentalProtectionTourTechnologyDevelopmentCo.,Ltd. | 27,979.00 | 2019-11-25 | 2020-11-24 | 2019-11-25至2020-11-24 | 8.00% |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | 4,025.00 | 2019-10-17 | 2020-10-16 | 2019-10-17至2020-10-16 | 7.00% |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | 3,000.00 | 2019-2-20 | 2020-2-19 | 2019-2-20至2020-2-19 | 7.00% |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | 1,000.00 | 2019-8-15 | 2020-8-14 | 2019-8-15至2020-8-14 | 7.00% |
| Lending | |||||
| HaimenKangjianTechnologyIndustrialParkOperationandManagementCo.Ltd. | 17,850.00 | 2019-8-30 | 2020-8-29 | 2019-8-30至2020-8-29 | 8.00% |
| HaimenKangjianTechnologyIndustrialParkOperationandManagementCo.Ltd. | 1,610.00 | 2019-9-29 | 2020-8-29 | 2019-8-30至2020-8-29 | 8.00% |
| HaimenKangjianTechnologyIndustrialParkOperationandManagementCo.Ltd. | 540.00 | 2019-12-2 | 2020-8-29 | 2019-12-2至2020-8-29 | 8.00% |
| HaimenKangjianTechnologyIndustrialParkOperationandManagementCo.Ltd. | 18,200.00 | 2019-12-2 | 2020-8-29 | 2019-12-2至2020-8-29 | 8.00% |
| HaimenKangjianTechnologyIndustrialParkOperationandManagementCo.Ltd. | 4,900.00 | 2019-12-3 | 2020-6-2 | 2019-12-3至2020-6-2 | 8.00% |
| HaimenKangjianTechnologyIndustrialParkOperationandManagementCo.Ltd. | 1,000.00 | 2019-10-1 | 2020-8-29 | 2019-10-1至2020-8-29 | 8.00% |
| YantaiKangyueInvestmentCo.Ltd. | 12,852.70 | 2019-12/16 | 2020/12/15 | 2019-12-16至2020-12-15 | 8.00% |
| ChongqingQingjiaElectronicCo.,Ltd. | 890.00 | 2018-4-12 | 2020-4-12 | 2018-4-12至2020-4-12 | 8.00% |
| ChuzhouKangjinHealthIndustry | 5,880.00 | 2019-9-25 | 2020-3-15 | 2019-9-25至2020-3-15 | 7.00% |
| NanjingKangxingTechnologyIndustrialParkOperationandManagementCo.Ltd. | 14,493.00 | 2019-10-21 | 2020-10-21 | 2018-10-22至2020-4-21 | 8.00% |
| NanjingKangxingTechnologyIndustrialParkOperationand | 41,600.00 | 2019-5-20 | 2020-4-21 | 2018-10-22至2020-4-21 | 8.00% |
| Name | Amount(RMB’0,000) | Startdate | Duedate | Duration | Interest |
| Borrowing | |||||
| ManagementCo.Ltd. | |||||
| YibinOCTSanjiangPropertiesCoLtd. | 6,000.00 | 2018-10-25 | 2020-4-24 | 2018-10-25至2020-4-24 | 5.70% |
| YibinOCTSanjiangPropertiesCoLtd. | 4,000.00 | 2018-10-25 | 2021-10-24 | 2018-10-25至2021-10-24 | 5.70% |
| HunanWanrongTechnologyCo.Ltd. | 2,000.00 | 2017-3-16 | 2020-3-15 | 2017-3-16至2020-3-15 | 11.00% |
Note:Theinterestexpensesgeneratedbytheborrowingfundsfromtheabove-mentionedrelatedpartiesarerespectively:219204406.33yuanfromoverseasChineseCityGroupCo.,Ltd.,894117.77yuanfromShenzhenRenjianHuahaiecotechnologytourismdevelopmentCo.,Ltd.and5497012.52yuanfromChuzhouhanshangElectricApplianceCo.,Ltd.;theinterestincomeorinvestmentincomegeneratedbytheborrowingfundsfromtheabove-mentionedrelatedpartiesarerespectively:1244yuanfromChongqingQingjiaElectronicCo.,Ltd,022.19yuan,NanjingKangxingTechnologyIndustrialParkOperationManagementCo.,Ltd.92177204.40yuan,YibinoverseasChinesetownSanjiangRealEstateCo.,Ltd.5779166.67yuanandHunanWanrongTechnologyCo.,Ltd.2108888.86yuan.
5.AssetsTransferandDebtRestructuringofRelatedParty
| Equitytransfer | Proportion | Time | Acquiree | Price |
| ChuzhouTID | 51.00% | 2019-6-21 | ShenzhenOCTCapitalInvestmentManagementCo.,Ltd. | 63,520,500.00 |
| CChuzhouKangjin | 51.00% | 2019-9-25 | ShanghaiOCTCapitalInvestmentDevelopmentCo.,Ltd. | 122,254,344.00 |
| SShenzhenOCTLIFE | 33.00% | 2019-3-21 | ShenzhenOCTPropertyCommerceDevelopmentCo.,Ltd. | 4,538,210.00 |
6.InformationonRemunerationforKeyManagementPersonnel
| Item | ReportingPeriod(RMB’0,000) | SamePeriodoflastyear(RMB’0,000) |
| Item | ReportingPeriod(RMB’0,000) | SamePeriodoflastyear(RMB’0,000) |
| Totalremuneration | 2,872.87 | 2,132.92 |
(III)IntercourseBalanceofRelatedParty
1.AccountsReceivable
| Item | Relatedparty | Endingbalance | ||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | |
| Accountsreceivable: | ||||
| ShenzhenYaodeTechnologyCo.,Ltd. | 119,160,752.64 | 2,426,038.42 | 38,691,654.09 | 773,833.08 |
| HOHOELECTRICAL&FURNITURECO | 112,180,062.15 | 2,277,255.26 | ||
| ShenzhenJielunteTechnologyCo.,Ltd.anditssubsidiaries | 75,330,999.32 | 1,645,079.86 | 13,445,059.89 | 268,901.19 |
| ShenzhenKonkaE-displayCommercialDisplayCo.,Ltd. | 63,110,212.25 | 1,281,137.31 | ||
| ShenzhenKonkaInformationNetworkCo.,Ltd. | 38,384,430.47 | 1,536,141.16 | 35,556,676.56 | 711,133.53 |
| OCTGroupCo.Ltd.Anditssubsidiaries | 21,207,204.72 | 430,506.25 | 13,413,924.15 | 502,591.00 |
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | 19,822,544.45 | 402,397.65 | 144,976,103.92 | 2,899,522.08 |
| KunshanKonkaElectronicsCo.,Ltd. | 235,078.99 | 4,772.10 | 25,051,883.94 | 501,037.68 |
| Subtotalofotherrelatedparties | 13,829,893.57 | 1,940,210.75 | 12,547,196.74 | 433,850.67 |
| Total | 463,261,178.56 | 11,943,538.76 | 283,682,499.29 | 6,090,869.23 |
| Notesreceivable: | ||||
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | 37,000,000.00 | 240,100,000.00 | ||
| Subtotalofotherrelatedparties | 6,739,171.02 | |||
| Total | 43,739,171.02 | 240,100,000.00 | ||
| Otherreceivables: | ||||
| Item | Relatedparty | Endingbalance | ||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | |
| JiangxiMeijiEnterpriseCo.,Ltd. | 93,612,640.31 | 2,068,839.35 | 74,788,640.31 | 1,495,772.81 |
| EquitytransferofDaiRongxingandotherintercoursefunds | 85,104,483.48 | 4,161,412.98 | 81,450,139.05 | 2,309,283.85 |
| OCTGroupCo.,Ltd.anditssubsidiaries, | 29,609,699.81 | 8,794,143.64 | 21,310,694.38 | 8,717,383.79 |
| HuanjiaGroupCo.,Ltd. | 23,065,103.20 | 4,613,020.64 | ||
| EquitytransferofHuJiawenandotherintercoursefunds | 251,625.20 | 12,300.31 | 240,692.62 | 4,813.85 |
| Subtotalofotherrelatedparties | 84,194.95 | 6,951.75 | 9,437,581.32 | 192,866.67 |
| Total | 231,727,746.95 | 19,656,668.67 | 187,227,747.68 | 12,720,120.97 |
| Prepayment: | ||||
| HaiyingTechnologyGroup(HongKong)Co., | 439,434,346.00 | |||
| ShenzhenKonkaInformationNetworkCo., | 40,983,577.99 | 4,341,793.16 | ||
| PuchuangJiakangTechnologyCo,Ltd. | 39,920,926.00 | |||
| ShenzhenUnifortuneSupplyChain | 28,623,157.08 | 28,623,157.08 | ||
| ShenzhenJielunteTechnologyCo.,Ltd.and | 13,763,739.19 | 29,647,649.73 | ||
| ChuzhouHanshangElectricApplianceCo.,Ltd. | 24,076,497.42 | |||
| Otherrelatedparties | 883,108.32 | 1,140,698.44 | ||
| Total | 563,608,854.58 | 87,829,795.83 | ||
| Long-termreceivables: | ||||
| FeidiTechnology(Shenzhen)Co.,Ltd. | 69,808,144.01 | 43,476,841.21 | ||
| Otherrelatedparties | 7,295,892.00 | 14,086,876.64 | ||
| Total | 77,104,036.01 | 57,563,717.85 | ||
2.AccountsPayable
| Item | Relatedparty | Endingcarryingamount |
| Accountspayable: | ||
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | 60,733,455.22 | 134,389,975.21 |
| ShenzhenJielunteTechnologyCo.,Ltd.anditssubsidiaries | 35,164,809.08 | 40,696,402.04 |
| KunshanKonkaElectronicsCo.,Ltd | 13,012,382.66 | 19,799,046.85 |
| Otherrelatedparties | 20,584,918.26 | 4,856,944.00 |
| Total | 129,495,565.22 | 199,742,368.10 |
| Notesreceivable: | ||
| Otherrelatedparties | 10,863,352.03 | 4,290,778.05 |
| Total | 10,863,352.03 | 4,290,778.05 |
| Advancesfromcustomers: | ||
| ShenzhenUnifortuneSupplyChainManagementCo.,Ltd. | 28,673,472.74 | |
| OCTGroupCo.,Ltd.anditssubsidiaries,associatedenterprises | 15,378,600.41 | 18,691,187.73 |
| KunshanKonkaElectronicsCo.,Ltd. | 13,150,116.07 | |
| Otherrelatedparties | 395,776.64 | 11,377,905.11 |
| Total | 57,597,965.86 | 30,069,092.84 |
| Otherpayables: | ||
| ChuzhouHanshangElectricApplianceCo.,Ltd. | 94,093,715.34 | 108,380,202.82 |
| ShenzhenYaodeTechnologyCo.,Ltd. | 39,727,606.67 | |
| FeidiTechnology(Shenzhen)Co.,Ltd.anditssubsidiaries | 11,767,561.85 | 5,638,548.27 |
| ShenzhenJielunteTechnologyCo.,Ltd.anditssubsidiaries | 10,240,000.00 | 400,000.00 |
| Otherrelatedparties | 7,224,602.98 | 16,856,964.32 |
| Total | 163,053,486.84 | 131,275,715.41 |
| Item | Relatedparty | Endingcarryingamount |
| Long-termpayables: | ||
| OCTGroupCo.,Ltd.anditssubsidiaries | 48,946,771.98 | - |
| Total | 48,946,771.98 | - |
XII.CommitmentandContingency
(I)Commitments
1.CapitalCommitments
| Item | Endingbalance | Beginningbalance |
| Commitmentssignedbuthasn’tbeenrecognizedinfinancialstatements | ||
| —Commitmentonconstructionandpurchaseoflong-livedassets | ||
| —Contractwithlargeamount | 3,889,900,964.09 | 1,127,089,984.26 |
| —Foreigninvestmentcommitments | 103,090,000.00 | |
| Total | 3,992,990,964.09 | 1,127,089,984.26 |
2.OperatingLeaseCommitmentsAsofthebalancesheetdate,theirrevocableoperatingleasecommitmentsthattheCompanysignedwereasfollowed:
| Item | Endingbalance | Beginningbalance |
| Minimumleasepaymentsofirrevocableoperatinglease | ||
| 1yearafterbalancedate | 29,370,366.16 | 21,432,789.82 |
| 2yearsafterbalancedate | 29,016,143.76 | 10,038,667.42 |
| 3yearsafterbalancedate | 17,502,940.47 | 3,662,167.92 |
| Followingyears | 5,349,676.50 | 3,938,998.40 |
| Total | 81,239,126.89 | 39,072,623.56 |
3.OtherCommitmentsAsof31December2019,therewerenoothersignificantcommitmentsfortheCompanytodisclose.
(II)Contingency
(1)ThedisputeinbillrecourserightamongtheCompany,JiangsuHongtuSanbaoHigh-TechTechnologyCo.,Ltd.,JiangsuHongtuHigh-TechTechnologyCo.,Ltd.,NanjingJiongjiongElectroincsTechnologyCo.,Ltd.andShenzhenQianhaiBenniuAgriculturalTechnologyCo.,Ltd.,hasinvolvedwiththeunderlyingamountofRMB200millionandrelevantinterest.InJuly2019,theCompanyfiledalawsuittothecourt.NowthecaseishearingintheNanjingMunicipalIntermediatePeople’sCourt,andtheCompanyhasappliedforpropertypreservationtothecourt.Asoftheissuancedateofthisreport,thecasehasnotbeenheldacourthearing.
(2)TheCompanyheldcommercialacceptancebillsofShanghaiHuaxinInternationalGroupCo.,Ltd.,whiletheacceptorfailedtoacceptthematuredbills.Thecompany,astheplaintiff,filedalawsuitwiththecourtonthematuredbillwithatotalamountof300027889.84yuan,requiringthebillacceptorShanghaiHuaxincompanyandthefronthandofthebillinvolvedtobearjointandseveralliabilityforclearingthebillamountanddefaultinterest.Asofthedateofthisreport,thecasesinvolving150millionyuanhavebeeninthestageofcompulsoryexecution,andothercasesarestillundertrial.Theabovecommercialacceptancebillhasnotbeencashed.
(3)BecausetheCompanyholdsthecommercialacceptancebillacceptedbyChinaNuclearEngineeringConstructionGroupCo.,Ltd.,theacceptorfailstohonourthebillafterthebillisdue.TheCompany,astheplaintiff,filesalawsuittothecourtonthebillofRMB78,900,690.24,requiringtheacceptortoassumejointandseveralliabilitiesforthebillamountanddefaultinterest.Asofthedateofthisreport,thecaseisstillontrialandtheabovecommercialacceptancebillhasnotbeenhonored.
(4)AsKangjiacommercialfactoring,asubsidiaryofthecompany,holdsthecommercialacceptancebillacceptedbyCCCCFirstEngineeringCo.,Ltd.andtheacceptorfailstohonorthebillwhenitisdue,thecompany,astheplaintiff,bringsalawsuittothecourtforthebilldueto65221300.00yuananddemandsthatCCCCandthefronthandofthebillinvolvedbearjointandseveralliabilitiesforthebillamountanddefaultinterest.Asofthedateofthisreport,thecaseisstillundertrial,andtheabove-mentionedcommercialacceptancebillhasnotbeencashed.
(5)ThedisputebetweentheCompanyandChinaEnergyElectricFuelCo.,Ltd.,ChinaEnergy
(Shanghai)EnterpriseCo.,Ltd.,ShanghaiNengpingEnterpriseCo.,Ltd.andShenzhenQianhaiBaoyingCommercialFactoringCo.,Ltd.overtherightofrecourseforbillsinvolvestheamountofthesubjectmatterofthelawsuittobeRMB50millionandthecorrespondinginterest.InSeptember2018,theCompanyfiledalawsuitwithShenzhenIntermediatePeople’sCourt,whichhaspreservedthedefendant'scorrespondingproperty.Thejudgmentofthiscasehascomeintoeffect.Inthecourt'sjudgment,defendantssuchasChinaEnergyElectricFuelCo.,Ltd.shallpaythebillamountofRMB50millionandtherelevantinteresttotheCompany.Asoftheissuancedateofthisreport,thecasewasintheexecutionstageandhasappliedtothecourtforadditionalshareholderstobetheexecutor.
(6)ThedisputeinbillrecourseamongthesubsidiaryoftheCompany,KonkaFactoring(Shenzhen)Co.,Ltd.,TahoeGroupCo.,Ltd.,FuzhouTaijiaEnterpriseCo.,Ltd.andXiamenLianMicro-electronicsCo.,Ltd.,hasinvolvedwiththeunderlyingamountofRMB50millionandrelevantinterest.InJanuary2019,theCompanyfiledalawsuittoXiamenMunicipalIntermediatePeople’sCourt,andtheCompanyhasappliedforpropertypreservationtothecourt.Asoftheissuancedateofthisreport,thecasehasnotgivenjudgment.
(7)LoancontractdisputesrelatedtotheCompany’ssubsidiaryJiangxiKonkaanditssubsidiaryXinfengMicrocrystaline,Nanocrystalline,ChinaGreatWallAMCJiangxiBranch,ZhuXinming,LengSumin,JiangxiXinzixin,JiangxiXinxinJian’anEngineering,JiangxiZhongyiDecorativeMaterial,JiangxiShanshiScienceandTechnologyandetc.DuetotheaffiliatedpartiesofJiangxiKonka’soriginalshareholder,i.e.JiangxiXinxinJian’anEngineering,JiangxiZhongyiDecorativeMaterial,JiangxiShanshiTechnology,failedtorepaytheloanonschedule.Therefore,ChinaGreatWallAMCJiangxiBranchfiledalawsuitanddemandedJiangxiXinxinJian’anEngineering,JiangxiZhongyiDecorativeMaterial,JiangxiShanshiScienceandTechnologytorepaytheloanprincipalofRMB300million,liquidateddamagesofRMB108,000andinterestofRMB13.65million.GuarantorsJiangxiKonka,ZhuXinming,LengSumin,NanoCrystallizedGlassandXinfengMicrocrystalinewererequiredtobearjointliabilityfortheabovedebts.On31October2019,theJiangxiProvincialSuperiorPeople’sCourtruledinfirstinstancethatJiangxiXinxinJian’anEngineering,JiangxiZhongyiDecorativeMaterial,JiangxiShanshiTechnologywouldrepaytheloanprincipalofRMB300million,interestandliquidateddamagestoChinaGreatWallAMCJiangxiBranchwithin10daysfromtheeffectivedateofthejudgmentrespectively.JiangxiKonka,ZhuXinming,LengSumin,NanoCrystallizedGlassandXinfengMicrocrystalineshallbear
jointandseveralliabilitiesforalldebtsdeterminedbytheabovejudgment.Thedefendantsrefusedtoacceptthejudgmentofthefirstinstanceandlaunchedappeal.Thesecondinstanceofthecasehasnotyetstarted.TheactualcontrollerofKonkaNewMaterials,ZhuXinming,andhisspouse,LengSumin,asguarantors,providedatotalofaboutRMB143millionofrealestatemortgageguaranteetoGreatWallAMCfortheaboveloans.ZhuXinmingandLengSuminalsoprovidedjointandseveralliabilityguarantee.InordertoavoidtheadverseimpactofthiscaseontheCompany,theCompanyhasagreedintheacquisitionagreementofJiangxiKonka,XinfengMicrocrystallineandnanometermicrocrystallinethatallcontingentdebtsincurredbyJiangxiKonkabytheoriginalshareholdersofKonkanewmaterialintheformofjointandseveralliability.JiangxiXinzixinrealestateco.,ltd.hasheldatotalofaboutRMB243millionofrealestateassetsasthecaseoftheanti-guaranteemortgagetoKonkagroupandwentthroughthemortgageregistrationprocedures.Asofthedateofthisreport,thecaseisstillontrialandtheabovecommercialacceptancebillhasnotbeenhonored.XIII.EventsafterBalanceSheetDate
1.SignificantNon-adjustedEvents
Nosignificantnon-adjustedevents
2.InfluenceofImplementationofNewAccountingStandardssince1January2020TheMinistryofFinanceissuedtheNotesofRevisingandPrintingAccountingStandardsforBusinessEnterprisesNo.14-Revenue(CK[2017]No.22)on5July2017.TheamendmentofAccountingStandardsforBusinessEnterprisesNo.14-Revenuemainlyincludes:twocurrentstandardsofrevenueandconstructioncontractareincludedinconsolidatedrevenuerecognitionmodel;thetransferofriskpremiumisreplacedbythetransferofcontrolasjudgmentbasisoftimeandplaceofrecognizingrevenue;eachsinglefulfillmentobligationincludedincontractsshallbeidentifiedandberecognizedtherevenuerespectivelywhenfulfilling;moredefiniteguidelineswillbeprovidedtotheaccountingtreatmentofcontractscontainingmultipletransactionarrangement;theexplicitstipulationisprovidedtotherecognizationandmeasurementofrevenueofcertainspecifictransactions(ormatters).Domesticlistedcompaniesshallimplementthenewstandardsfrom1January2020accordingtotherelevantregulationsoftheabovementioneddocument.TheCompanyadjustedtherelevantcontentofaccountingpolicyandstartedtoimplementthenewstandardsfrom1January2020.
3.SincetheoutbreakoftheepidemicsituationofCOVID-19(“epidemicofCOVID-19”)inChinasinceJanuary2020,theCompanyhasactivelyrespondedtoandstrictlyimplementedtheprovisions
andrequirementsofthepartyandthegovernmentatalllevelsonthepreventionandcontrolofthevirusepidemic,andsupportedthenationalwarepidemicthroughmultiplemeasuresincludingsupplysecurity,socialresponsibilityandinternalmanagement.TheCompanyexpectsthatthisnewoutbreakandthepreventionandcontrolmeasureswillcauseacertaintemporaryimpactontheproductionandoperationoftheCompany’sdomesticandoverseassubsidiaries.Theimpactdependsontheprogressoftheepidemicpreventionandcontrol,thedurationandtheimplementationofpreventionandcontrolpoliciesindifferentregions.TheCompanywillcontinuetopaycloseattentiontothedevelopmentoftheepidemicofCOVID-19,andactivelyrespondtoitsimpactontheCompany’sfinancialsituation,operatingresultsandotheraspects.
4.NoothersignificanteventsafterbalancesheetdateoftheCompanyotherthanabovedisclosedmatters.XIV.OtherSignificantEvents
NoOthersignificanttransactionsandevents.XV.NotesofMainItemsintheFinancialStatementsoftheCompanyastheParent
1.AccountsReceivable
(1)ListedbyWithdrawalMethodofExpectedCreditLoss
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Accountsreceivableforwhichexpectedcreditlosswithdrawnseparately | 851,581,146.54 | 8.53 | 243,095,956.82 | 28.55 | 608,485,189.72 |
| Accountsreceivableforwhichexpectedcreditlosswithdrawnbygroup | |||||
| Ofwhich:Aginggroup | 546,689,702.44 | 5.48 | 176,154,824.04 | 32.22 | 370,534,878.40 |
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Projectpaymentgroup | - | - | - | - | |
| Relatedpartygroup | 8,585,700,872.27 | 85.99 | 8,585,700,872.27 | ||
| Subtotalofgroups | 9,132,390,574.71 | 91.47 | 176,154,824.04 | 1.93 | 8,956,235,750.67 |
| Total | 9,983,971,721.25 | 100.00 | 419,250,780.86 | 4.20 | 9,564,720,940.39 |
(Continued)
| Category | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Accountsreceivableforwhichexpectedcreditlosswithdrawnseparately | 767,486,677.87 | 10.00 | 69,790,565.32 | 9.09 | 697,696,112.55 |
| Accountsreceivableforwhichexpectedcreditlosswithdrawnbygroup | |||||
| Ofwhich:Aginggroup | 1,029,783,688.54 | 13.42 | 177,262,039.88 | 17.21 | 852,521,648.66 |
| Projectpaymentgroup | |||||
| Relatedpartygroup | 5,876,525,075.32 | 76.58 | 5,876,525,075.32 | ||
| Subtotalofgroups | 6,906,308,763.86 | 90.00 | 177,262,039.88 | 17.21 | 6,729,046,723.98 |
| Total | 7,673,795,441.73 | 100.00 | 247,052,605.20 | 3.22 | 7,426,742,836.53 |
1)WithdrawalofExpectedCreditLossSeparately
| Name | Endingbalance |
| Carryingamount | Baddebtprovision | Withdrawalproportion(%) | Reason | |
| CEFC(Shanghai)GroupCo.,Ltd. | 300,027,889.84 | 150,013,944.92 | 50.00 | Debtdefault |
| JiangsuHongtuSanbaoHigh-TechTechnologyCo.,Ltd. | 200,000,000.00 | 32,000,000.00 | 16.00 | Difficultinturnoverofcurrentcapital |
| TewooGroupCo.,Ltd. | 200,000,000.00 | 30,000,000.00 | 15.00 | Difficultinturnoverofcurrentcapital |
| ChinaNuclearEngineeringConstructionGroupCo.,Ltd. | 78,900,690.24 | 7,890,069.02 | 10.00 | Difficultinturnoverofcurrentcapital |
| ChinaEnergyPowerFuelCo.,Ltd. | 50,000,000.00 | 7,500,000.00 | 15.00 | Difficultinturnoverofcurrentcapital |
| Other | 22,652,566.46 | 15,691,942.88 | 69.27 | Expectedtobedifficulttorecoverinfull |
| Total | 851,581,146.54 | 243,095,956.82 | — |
2)WithdrawalofExpectedCreditLossbyGroup
①AmongGroups,WithdrawalofExpectedCreditLossbyAging
| Aging | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion(%) | |
| Within1year | 346,851,968.18 | 12,987,413.78 | 3.74 |
| 1to2years | 36,091,598.18 | 2,659,950.79 | 7.37 |
| 2to3years | 3,967,862.55 | 878,881.55 | 22.15 |
| 3to4years | 412,044.07 | 262,348.46 | 63.67 |
| Over4years | 159,366,229.46 | 159,366,229.46 | 100.00 |
| Total | 546,689,702.44 | 176,154,824.04 | |
②AmongGroups,WithdrawalofExpectedCreditLossbyAdoptingOtherMethod
| Item | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion(%) | |
| Relatedpartygroup | 8,585,700,872.27 | - | - |
| Item | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion(%) | |
| Total | 8,585,700,872.27 | - | - |
2)Listedbyaginggroup
| Aging | Endingbalance |
| Within1year | 8,597,211,385.57 |
| 1to2years | 878,535,145.09 |
| 2to3years | 336,766,315.77 |
| 3to4years | 2,232,813.62 |
| Over4years | 169,226,061.20 |
| Subtotal | 9,983,971,721.25 |
| Less:Baddebtprovision | 419,250,780.86 |
| Total | 9,564,720,940.39 |
(3)InformationofBadDebtProvisionintheReportingPeriodTheamountofactualwithdrawalofbaddebtprovisionisRMB172,198,175.66.
(4)ActualVerificationofAccountsReceivableNoactualverifiedaccountsreceivableintheReportingPeriod.
(5)Top5oftheEndingBalanceoftheAccountsReceivableCollectedaccordingtoArrearsPartyTotalamountofTop5ofendingbalanceofaccountsreceivablecollectedaccordingtoarrearspartywasRMB9,189,000,915.15accountingfor92.04%oftotalendingbalanceofaccountsreceivable.TotalendingbalanceofbaddebtprovisionwithdrawnwasRMB212,013,944.92.
(6)ThereWasNoAccountReceivableTerminatedtheRecognitionowningtotheTransferofthe
FinancialAssets.
(7)ThereWasNoAssetandLiabilityFormedduetotheTransferofAccountsReceivableand
ContinuedInvolvementintheReportingPeriod.
2.OtherReceivables
| Item | Endingbalance | Beginningbalance |
| Interestreceivable | 7,431,353.86 | 5,769,663.24 |
| Dividendsreceivable | 518,580,871.02 | |
| Otherreceivables | 10,026,808,690.59 | 6,660,069,551.06 |
| Total | 10,552,820,915.47 | 6,665,839,214.30 |
2.1Interestreceivable
| Item | Endingbalance | Beginningbalance |
| Termdeposits | 4,807,630.04 | 3,435,261.69 |
| Entrustmentloans | 2,623,723.82 | 2,328,939.05 |
| Gainonwealthmanagement | 5,462.50 | |
| Total | 7,431,353.86 | 5,769,663.24 |
2.2Dividendsreceivable
| Item | Endingbalance | Beginningbalance |
| HongKongKonkaLimited | 214,987,200.00 | - |
| KonkaFactoring(Shenzhen)Co.,Ltd. | 70,000,000.00 | - |
| DongguanKonkaElectronicCo.,Ltd. | 233,593,671.02 | - |
| Total | 518,580,871.02 | - |
2.3Dividendsreceivable
(1)Provisionforbaddebtsofotherreceivables
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossofthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1January2019 | 1,315,614.16 | 25,480,254.98 | 162,653,423.19 | 189,449,292.33 |
| Balanceof1January2019intheCurrentPeriod | - | - | - | - |
| --TransfertoSecondstage | -359,351.11 | 359,351.11 | - | - |
| --TransfertoThirdstage | - | - | - | - |
| --ReversetoSecondstage | - | - | - | - |
| --ReversetoFirststage | - | - | - | - |
| WithdrawaloftheCurrentPeriod | 6,340,067.68 | 6,340,067.68 | ||
| ReversaloftheCurrentPeriod | 8,435,026.70 | 192,053.96 | 8,627,080.66 | |
| Write-offsoftheCurrentPeriod | - | |||
| VerificationoftheCurrentPeriod | - | |||
| Otherchanges | - | |||
| Balanceof31December2019 | 7,296,330.73 | 17,404,579.39 | 162,461,369.23 | 187,162,279.35 |
Note:Thefirststageisthatcreditriskhasnotincreasedsignificantlysinceinitialrecognition.Forotherreceivableswithanagingportfolioandalow-riskportfoliowithin1year,thelossprovisionismeasuredaccordingtotheexpectedcreditlossesinthenext12months.Thesecondstageisthatcreditriskhasincreasedsignificantlysinceinitialrecognitionbutcreditimpairmenthasnotyetoccurred.Forotherreceivableswithanagingportfolioandalow-riskportfoliothatexceed1year,thelossprovisionismeasuredbasedontheexpectedcreditlossesfortheentireduration.Thethirdstageisthecreditimpairmentafterinitialconfirmation.Forotherreceivablesofcreditimpairmentthathaveoccurred,thelossprovisionismeasuredaccordingtothecreditlossesthathaveoccurredthroughouttheduration.
(2)OtherReceivablesWithdrawnBadDebtProvisionbyGroup
| Category | Endingbalance | |||||
| Carryingamount | Baddebtprovision | Carryingvalue | ||||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | |||
| Otherreceivablesforwhichwithdrawnexpectedcreditlossseparately: | 173,092,959.33 | 1.69 | 162,461,369.23 | 93.86 | 10,631,590.10 | |
| Otherreceivablesforwhichwithdrawnbaddebtprovisionbycreditriskfeaturesgroup: | - | - | - | - | - | |
| Aginggroup | 196,772,672.55 | 1.93 | 16,787,423.23 | 8.53 | 179,985,249.32 | |
| Lowriskgroup | 390,582,659.31 | 3.82 | 7,913,486.89 | 2.03 | 382,669,172.42 | |
| Relatedparty | 9,453,522,678.75 | 92.55 | 9,453,522,678.75 | ||
| Subtotal | 10,040,878,010.61 | 98.30 | 24,700,910.12 | 0.25 | 10,016,177,100.49 |
| Total | 10,213,970,969.94 | 100.00 | 187,162,279.35 | 1.83 | 10,026,808,690.59 |
(Continued)
| Category | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Otherreceivablesforwhichwithdrawnexpectedcreditlossseparately: | 173,765,477.33 | 2.54 | 162,653,423.19 | 93.61 | 11,112,054.14 |
| Otherreceivablesforwhichwithdrawnbaddebtprovisionbycreditriskfeaturesgroup: | - | - | - | - | - |
| Aginggroup | 123,303,853.71 | 1.8 | 26,478,680.53 | 21.47 | 96,825,173.17 |
| Lowriskgroup | 29,986,121.11 | 0.44 | 317,188.61 | 1.06 | 29,668,932.50 |
| Relatedparty | 6,522,463,391.24 | 95.22 | - | - | 6,522,463,391.24 |
| Subtotal | 6,675,753,366.06 | 97.46 | 26,795,869.14 | 0.40 | 6,648,957,496.92 |
| Total | 6,849,518,843.39 | 100 | 189,449,292.33 | 2.77 | 6,660,069,551.06 |
(3)BadDebtProvisionofOtherReceivablesTheamountofbaddebtprovisionwithdrawninthisyearis6,340,067.68yuan,andtheamountofbaddebtprovisionreversedinthisyearis8,627,080.66yuan.Therearenootherreceivablesactuallywrittenoffinthecurrentperiod.
(4)BadDebtProvisionlistedbyaging
| Aging | Endingbalance |
| Within1year | 8,845,003,211.78 |
| 1to2years | 861,335,082.89 |
| 2to3years | 182,789,126.39 |
| 3to4years | 49,281,243.35 |
| 4to5years | 123,887,132.76 |
| Over5years | 151,675,172.77 |
| Subtotal | 10,213,970,969.94 |
| Less:Baddebtprovision | 187,162,279.35 |
| Total | 10,026,808,690.59 |
(5)Otherreceivableswithtopfiveendingbalancescollectedbydebtors.Inthisyear,thetotalamountofthetopfiveotherreceivablescollectedbydebtorsattheendoftheyearis6,237,722,020.34yuan,accountingfor61.07%ofthetotalamountofotherreceivablesattheendoftheyear,andthetotalamountofthecorrespondingaccruedbaddebtreservesattheendoftheyearis0.00yuan.
(6)ThereWasNoOtherReceivablesTerminatedtheRecognitionowningtotheTransferoftheFinancialAssets.
(7)ThereWasNoAssetandLiabilityFormedbytheTransferandtheContinuesInvolvementofOtherReceivables
3.Long-termEquityInvestment
(1)CategoryofLong-termEquityInvestment
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserve | Carryingvalue | Carryingamount | Depreciationreserve | Carryingvalue | |
| Investmenttosubsidiaries | 5,983,370,982.51 | 10,732,484.69 | 5,972,638,497.82 | 4,562,175,372.51 | 46,732,484.69 | 4,515,442,887.82 |
| Investmenttoassociatedenterprises | 1,752,296,635.13 | 12,850,165.07 | 1,739,446,470.06 | 1,672,678,055.95 | 5,158,909.06 | 1,667,519,146.89 |
| Total | 7,735,667,617.64 | 23,582,649.76 | 7,712,084,967.88 | 6,234,853,428.46 | 51,891,393.75 | 6,182,962,034.71 |
(2)InvestmenttoSubsidiaries
| Investee | Beginningbalance | Increase | Decrease | Endingbalance | Depreciationreservewithdrawnoroffset | Endingbalanceofdepreciationreserve |
| MudangjiangElectricAppliances | 36,000,000.00 | - | 36,000,000.00 | - | -36,000,000.00 | - |
| AnhuiKonka | 122,780,937.98 | - | - | 122,780,937.98 | - | - |
| DongguanKonka | 274,783,988.91 | - | - | 274,783,988.91 | - | - |
| HongKongKonka | 781,828.61 | - | - | 781,828.61 | - | - |
| KonkaEurope | 3,637,470.00 | - | - | 3,637,470.00 | - | - |
| Plasthetics | - | - | - | - | - | - |
| KonkaHouseholdAppliances | 1.00 | - | - | 1.00 | - | 10,732,484.69 |
| TelecommunicationTechnology | 300,000,000.00 | 60,000,000.00 | - | 360,000,000.00 | - | - |
| Domesticappliance | 31,500,000.00 | - | - | 31,500,000.00 | - | - |
| FittingsTechnology | 48,750,000.00 | - | - | 48,750,000.00 | - | - |
| Investee | Beginningbalance | Increase | Decrease | Endingbalance | Depreciationreservewithdrawnoroffset | Endingbalanceofdepreciationreserve |
| KonkaFactoring | 300,000,000.00 | - | - | 300,000,000.00 | - | - |
| Wankaida | 10,000,000.00 | - | - | 10,000,000.00 | - | - |
| AnhuiTongchuang | 481,702,612.22 | - | - | 481,702,612.22 | - | - |
| BeijingKonka | 200,000,000.00 | - | - | 200,000,000.00 | - | - |
| KonkaE-display | 7,200,000.00 | - | 7,200,000.00 | - | - | - |
| CommercialTechnology | 5,832,000.00 | - | - | 5,832,000.00 | - | - |
| MobileInternet | 10,200,000.00 | 9,800,000.00 | - | 20,000,000.00 | - | - |
| E2info | 19,322,040.00 | - | - | 19,322,040.00 | - | - |
| E3info | 12,000,000.00 | - | - | 12,000,000.00 | - | - |
| DongguanPacking | 8,602,009.10 | - | - | 8,602,009.10 | - | - |
| ChuzhouKonkaTID | 40,000,000.00 | - | 40,000,000.00 | - | - | - |
| KonkaVentures | 2,550,000.00 | - | - | 2,550,000.00 | - | - |
| KonkaPengrun | 25,500,000.00 | - | - | 25,500,000.00 | - | - |
| KonkaUnifortune | 15,300,000.00 | - | - | 15,300,000.00 | - | - |
| KonkaInvestment | 40,000,000.00 | 437,000,000.00 | - | 477,000,000.00 | - | - |
| JiangxiKonka | 689,680,000.00 | - | - | 689,680,000.00 | - | - |
| ElectronicsTechnology | 1,000,000,000.00 | - | - | 1,000,000,000.00 | - | - |
| SichuanKangjiatong | 1,020,000.00 | 14,280,000.00 | - | 15,300,000.00 | - | - |
| EconTechnology | 688,500,000.00 | - | - | 688,500,000.00 | - | - |
| KonkaHuanjia | 91,800,000.00 | - | - | 91,800,000.00 | - | - |
| ShenzhenNianhua | 30,000,000.00 | - | - | 30,000,000.00 | - | - |
| ShanghaiKonka | 40,000,000.00 | - | - | 40,000,000.00 | - | - |
| ShenzhenKangxinwei | 14,000,000.00 | 86,000,000.00 | - | 100,000,000.00 | - | - |
| KonkaEcologicalDevelopment | - | 50,000.00 | - | 50,000.00 | - | - |
| KonkaIntegration | - | 5,100,000.00 | - | 5,100,000.00 | - | - |
| Investee | Beginningbalance | Increase | Decrease | Endingbalance | Depreciationreservewithdrawnoroffset | Endingbalanceofdepreciationreserve |
| SuiningKonkaIndustrialPark | - | 200,000,000.00 | - | 200,000,000.00 | - | - |
| SuiningElectronicTechnology | - | 200,000,000.00 | - | 200,000,000.00 | - | - |
| DongguanKonkaInvestment | - | 44,400,000.00 | - | 44,400,000.00 | - | - |
| ShenzhenChuangzhiElectricalAppliances | - | 10,000,000.00 | - | 10,000,000.00 | - | - |
| Konka(Yantai)EnvironmentalProtection | - | 5,100.00 | - | 5,100.00 | - | - |
| ChongqingKangxingrui | - | 25,500,000.00 | - | 25,500,000.00 | - | - |
| ChongqingPhotoelectricResearchInstitute | - | 350,000,000.00 | - | 350,000,000.00 | - | - |
| XinyingSemiconductor | - | 14,000,000.00 | - | 14,000,000.00 | - | - |
| ChongqingPropertiesDevelopment | - | 25,500,000.00 | - | 25,500,000.00 | - | - |
| NingboKanghanruiElectricalAppliances | - | 9,000,000.00 | - | 9,000,000.00 | - | - |
| KonkaZhizao | - | 510.00 | - | 510.00 | - | - |
| JiadebaoNewMaterial | - | 3,750,000.00 | - | 3,750,000.00 | - | - |
| SuiningJiarunProperties | - | 10,000,000.00 | - | 10,000,000.00 | - | - |
| KangxinlongEnvironmentalProtection | - | 10,000.00 | - | 10,000.00 | - | - |
| ChuzhouKangjin | - | 30,000,000.00 | 30,000,000.00 | - | - | - |
| HaimenKangjian | - | 70,000,000.00 | 70,000,000.00 | - | - | - |
| ShenzhenKangyue | - | 11,800,000.00 | 11,800,000.00 | - | - | - |
| Investee | Beginningbalance | Increase | Decrease | Endingbalance | Depreciationreservewithdrawnoroffset | Endingbalanceofdepreciationreserve |
| Total | 4,515,442,887.82 | 1,616,195,610.00 | 195,000,000.00 | 5,972,638,497.82 | 36,000,000.00 | 10,732,484.69 |
(3)InvestmenttoJointVenturesandAssociatedEnterprises
| Investee | Balanceattheendoflastyearatthebeginningoftheyear | Increase-decrease | |||
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | ||
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | 35,364,497.05 | - | - | -11,834,755.90 | - |
| KunshanKonka | 146,846,610.14 | - | - | -17,949,856.95 | - |
| KunshanKangsheng | 175,254,554.65 | - | - | - | - |
| ChutianDragonCo.,Ltd. | 624,845,604.93 | - | - | 22,304,031.77 | - |
| HelongjiangLongkangZhijiaTechnologyCo.,Ltd. | 6,400,480.52 | - | - | -1,550,082.49 | - |
| KonkaGreen,KonkaTechnology | 78,409,903.14 | - | - | -1,067,483.78 | - |
| ShaanxiSilkRoadCloudIntelligentTechCo.,Ltd. | 4,522,509.33 | 12,350,000.00 | - | 329,806.10 | - |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | 13,996,444.85 | - | - | -13,996,444.85 | - |
| ShenzhenZhongbinKonkaTechnologyCo.,Ltd. | 10,617,873.79 | - | - | -3,344,645.38 | - |
| ShenzhenKonkaIntelligentElectricalApparatusCo.,Ltd. | 2,287,478.52 | - | - | 594,671.20 | - |
| ZhuhaiJinsuPlasticCo.,Ltd. | 11,040,246.82 | - | - | 1,196,157.32 | - |
| ShenzhenOCTLIFENetworkTechnologyCo.,Ltd. | 3,592,514.06 | - | 3,592,514.06 | - | - |
| ShenzhenBosserNewMaterialsCo.,Ltd. | 79,859,338.44 | - | - | -1,038,480.46 | - |
| Investee | Balanceattheendoflastyearatthebeginningoftheyear | Increase-decrease | |||
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | ||
| ShenzhenYaodeTechnologyCo.,Ltd. | 222,210,835.18 | - | - | 7,529,410.29 | - |
| WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | 252,270,255.47 | - | - | 23,307,076.74 | - |
| KonkaE-display | - | 16,926,689.50 | - | - | - |
| ChuzhouKonkaTechnologyIndustryDevelopmentCo.,Ltd. | - | 17,270,427.37 | - | - | - |
| ChuzhouKangjinHealthIndustrialDevelopmentCo.,Ltd. | - | 14,588,741.64 | - | - | - |
| HaimenKangjianTechnologyIndustrialParkOperationsandManagementCo.,Ltd. | - | 29,589,201.10 | - | - | - |
| ShenzhenKangyueEnterpriseCo.,Ltd. | - | 3,691,460.77 | - | - | - |
| Total | 1,667,519,146.89 | 94,416,520.38 | 3,592,514.06 | 4,479,403.61 | - |
(Continued)
| Investee | Increase-decrease | Endingbalance | Endingbalanceofdepreciationreserve | |||
| Otherequitychanges | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Other | |||
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | - | - | - | - | 23,529,741.15 | - |
| KunshanKonka | - | - | - | - | 128,896,753.19 | - |
| KunshanKangsheng | - | - | - | - | 175,254,554.65 | - |
| ChutianDragonCo.,Ltd. | - | 11,088,000.00 | - | - | 636,061,636.70 | - |
| HelongjiangLongkangZhijiaTechnologyCo.,Ltd. | - | - | 2,470,398.03 | - | 2,380,000.00 | 2,470,398.03 |
| KonkaGreen,KonkaTechnology | - | - | - | - | 77,342,419.36 | - |
| ShaanxiSilkRoadCloudIntelligentTechCo.,Ltd. | - | - | - | - | 17,202,315.43 | - |
| Investee | Increase-decrease | Endingbalance | Endingbalanceofdepreciationreserve | |||
| Otherequitychanges | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Other | |||
| ShenzhenKonkaInformationNetworkCo.,Ltd. | - | - | - | - | 5,158,909.06 | |
| ShenzhenZhongbinKonkaTechnologyCo.,Ltd. | - | - | - | - | 7,273,228.41 | - |
| ShenzhenKonkaIntelligentElectricalApparatusCo.,Ltd. | - | - | - | - | 2,882,149.72 | - |
| ZhuhaiJinsuPlasticCo.,Ltd. | - | 2,070,000.00 | - | - | 10,166,404.14 | - |
| ShenzhenOCTLIFENetworkTechnologyCo.,Ltd. | - | - | - | - | - | - |
| ShenzhenBosserNewMaterialsCo.,Ltd. | - | - | - | - | 73,600,000.00 | 5,220,857.98 |
| ShenzhenYaodeTechnologyCo.,Ltd. | - | - | 5,220,857.98 | - | 229,740,245.47 | |
| WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | - | - | - | - | 275,577,332.21 | |
| KonkaE-display | - | 2,526,830.75 | - | - | 14,399,858.75 | |
| ChuzhouKonkaTechnologyIndustryDevelopmentCo.,Ltd. | - | - | - | - | 17,270,427.37 | |
| ChuzhouKangjinHealthIndustrialDevelopmentCo.,Ltd. | - | - | - | - | 14,588,741.64 | |
| HaimenKangjianTechnologyIndustrialParkOperationsandManagementCo.,Ltd. | - | - | - | - | 29,589,201.10 | |
| ShenzhenKangyueEnterpriseCo.,Ltd. | - | - | - | - | 3,691,460.77 | |
| Total | - | 15,684,830.75 | 7,691,256.01 | - | 1,739,446,470.06 | 12,850,165.07 |
4.OperatingRevenueandCostofSales
| Item | ReportingPeriod | SamePeriodoflastyear | |||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | ||
| Mainoperations | 5,036,032,864.08 | 4,960,650,274.98 | 10,132,713,516.14 | 9,524,363,828.80 | |
| Otheroperations | 650,069,282.90 | 452,981,509.79 | 3,244,968,370.31 | 3,047,765,335.52 | |
| Total | 5,686,102,146.98 | 5,413,631,784.77 | 13,377,681,886.45 | 12,572,129,164.32 | |
5.InvestmentIncome
| Item | ReportingPeriod | SamePeriodoflastyear |
| Long-termequityinvestmentincomeaccountedbycostmethod | 537,735,966.91 | 711,492,879.96 |
| Long-termequityinvestmentincomeaccountedbyequitymethod | 5,132,712.27 | 33,783,935.14 |
| Investmentincomefromdisposaloflong-termequityinvestment | 393,939,191.83 | 342,201,410.67 |
| Investmentincomefromholdingoftradingfinancialassets | 2,330,000.00 | |
| Investmentincomefromdisposaloftradingfinancialassets | -10,285,883.02 | -45,748,200.91 |
| Investmentincomefromholdingofavailable-for-salefinancialassets | 17,920,000.00 | |
| Incomefromentrustfinancialproductsandentrustloans | 70,346,322.45 | 187,429,014.78 |
| Total | 999,198,310.44 | 1,247,079,039.64 |
XVI.ApprovalofFinancialStatements
Thefinancialstatementwasapprovedon20April2020bytheBoardofDirectors.
XVII.SupplementaryMaterials
1.ItemsandAmountsofNon-recurringProfitorLoss
| Item | Amount | Note |
| Gain-Lossarisingfromdisposalofnon-currentassets | 1,202,401,420.41 | |
| Taxrebates,reductionsorexemptionsduetoapprovalbeyondauthorityorthelackofofficialapprovaldocuments | - | |
| Governmentsubsidiesrecognizedinthecurrentperiod,exceptforthoseacquiredintheordinarycourseofbusinessorgrantedatcertainquotasoramountsaccordingtothegovernment’sunifiedstandards | 1,204,519,346.40 | |
| Capitaloccupationchargesonnon-financialenterprisesthatarerecordedintocurrentprofitorloss | - | |
| GainsduetothattheinvestmentcostsfortheCompanytoobtainsubsidiaries,associatesandjointventuresarelowerthantheenjoyablefairvalueoftheidentifiablenetassetsoftheinvesteeswhenmakingtheinvestments | - | |
| Gain/Lossonnon-monetaryassetswap | - | |
| Gain/Lossonentrustingotherswithinvestmentsorassetmanagement | 71,541,978.85 | |
| AssetimpairmentprovisionsduetoactsofGodsuchasnaturaldisasters | - | |
| Gain/Lossfromdebtrestructuring | 14,515,006.57 | |
| Expensesonbusinessreorganization,suchasexpensesonstaffarrangements,integration,etc. | - | |
| Gain/Lossonthepartoverthefairvalueduetotransactionswithdistinctlyunfairprices | - | |
| Currentnetprofitorlossofsubsidiariesacquiredinbusinesscombinationunderthesamecontrolfromperiod-beginningtocombinationdate | - |
| Item | Amount | Note |
| Gain/LossincurredfromcontingencyunrelatedtotheCompany’snormaloperatingbusinesses. | - | |
| Gain/lossfromchangeoffairvalueoftradingfinancialassetsandliabilities,andderivativefinancialassetsandliabilities,andinvestmentgainsfromdisposaloftradingfinancialassetsandliabilities,andderivativefinancialassetsandliabilities,andinvestmentinotherobligatoryrights,otherthanvalidhedgingrelatedtotheCompany’scommonbusinesses | 49,472,415.17 | |
| Reverseofbaddebtprovisionofaccountsreceivableindividuallyconductingimpairmenttest | - | |
| Gain/lossonentrustmentloans | 1,992,676.20 | |
| Gain/lossonchangeinfairvalueofinvestmentpropertyofwhichthesubsequentmeasurementiscarriedoutadoptingfairvaluemethod | - | |
| Effectoncurrentprofitorlosswhenaone-offadjustmentismadetocurrentprofitorlossaccordingtorequirementsoftaxation,accountingandotherrelevantlawsandregulations | - | |
| Custodyfeeincomewhenentrustedwithoperation | - | |
| Othernon-operatingincomeandexpenseotherthantheabove | 121,189,478.51 | |
| Projectconfirmedwiththedefinitionofnon-recurringgainsandlosses | 145,586,810.18 | |
| Subtotal | 2,811,219,132.29 | |
| Incometaxeffects | 545,067,993.60 | |
| Non-controllinginterestseffects(aftertax) | 178,394,382.43 | |
| Total | 2,087,756,756.26 | — |
TheexplanationoftheCompanyto“Projectconfirmedwiththedefinitionofnon-recurringgainsandlosses”anddefinenon-recurringgainsandlossesasrecurringgainsandlossesaccordingtothenatureandfeaturesofnormalbusinessoperationsofcompany.
| Item | Amount | Reason |
| Softwaretax | 39,348,087.93 | Governmentgrantsrecognizedinthecurrentperiod,andacquired |
| Item | Amount | Reason |
| rebates | intheordinarycourseofbusinessorgrantedatcertainquotasoramountsaccordingtothegovernment’sunifiedstandards |
2.ReturnonEquityandEarningsPerShare
| ProfitasofReportingPeriod | WeightedaverageROE(%) | EPS(Yuan/share) | |
| EPS-basic | EPS-diluted | ||
| NetprofitattributabletoordinaryshareholdersoftheCompany | 2.62 | 0.0881 | 0.0881 |
| NetprofitattributabletoordinaryshareholdersoftheCompanyafterdeductionofnon-recurringprofitorloss | -23.20 | -0.7790 | -0.7790 |
PartXIIIDocumentsAvailableforReference
I.ThefinancialstatementswiththesignaturesandsealsoftheCompany’slegalrepresentative,ChiefFinancialOfficerandheadofthefinancialdepartment;II.TheoriginalcopyoftheIndependentAuditor’sReportwiththesealoftheCPAfirmandthesignatures&sealsofthecertifiedpublicaccountants;III.TheoriginalsofalltheCompany’sdocumentsandannouncementsdisclosedtothepublicvianewspapersdesignatedbytheCSRCintheReportingPeriod;andIV.Otherrelevantmaterials.
TheBoardofDirectorsKonkaGroupCo.,Ltd.
21April2020