KONKAGROUPCO.,LTD.INTERIMREPORT2020
2020-90
August2020
PartIImportantNotes,TableofContentsandDefinitions
TheBoardofDirectors(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.TheCompanyhasnointerimdividendplan,eitherintheformofcashorstock.ThisReportanditssummaryhavebeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionsshallprevail.
TableofContents
PartIImportantNotes,TableofContentsandDefinitions ...... 2
PartIICorporateInformationandKeyFinancialInformation ...... 9
PartIIIBusinessSummary ...... 12
PartIVOperatingPerformanceDiscussionandAnalysis ...... 15
PartVSignificantEvents ...... 29
PartVIShareChangesandShareholderInformation ...... 57
PartVIIPreferredShares ...... 62
PartVIIIConvertibleCorporateBonds ...... 63
PartIXDirectors,SupervisorsandSeniorManagement ...... 64
PartXCorporateBonds ...... 65
PartXIFinancialStatements ...... 70
PartXIIDocumentsAvailableforReference ...... 257
Definitions
Term
| 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. |
| KonkaEurope | KonkaEuropeGmbH |
| CommercialSystemTechnology | ShenzhenKonkaCommercialSystemTechnologyCo.,Ltd. |
| KonkaElectricalAppliances | ShenzhenKonkaElectricalAppliancesCo.,Ltd. |
| KonkaMaterial | HainanKonkaMaterialTechnologyCo.,Ltd. |
| MobileInterconnection | ShenzhenKonkaMobileInterconnectionTechnologyCo.,Ltd. |
| SichuanKonka | SichuanKonkaSmartTerminalTechnologyCo.,Ltd |
| YibinSmart | YibinKonkaSmartTechnologyCo.,Ltd. |
| AnhuiTongchuang | AnhuiKonkaTongchuangElectricalAppliancesCo.,Ltd. |
AnhuiElectricalAppliance
| AnhuiElectricalAppliance | AnhuiKonkaElectricalApplianceTechnologyCo.,Ltd. |
| FrestecRefrigeration | HenanFrestecRefrigerationApplianceCo.,Ltd. |
| FrestecSmart | HenanFrestecSmartEcoElectricalAppliancesCo.,Ltd. |
| FrestecElectricalAppliances | HenanFrestecElectricalAppliancesCo.,Ltd. |
| FrestecHouseholdAppliances | HenanFrestecHouseholdAppliancesCo.,Ltd. |
| PengrunTechnology | ShenzhenKonkaPengrunTechnology&IndustryCo.,Ltd. |
| JiaxinTechnology | JiaxinTechnologyCo.,Ltd. |
| DongguanPacking | DongguanKonkaPackingMaterialsCo.,Ltd. |
| E2info | ShenzhenE2infoNetworkTechnologyCo.,Ltd. |
| E2info(Hainan) | E2info(Hainan)NetworkTechnologyCo.,Ltd. |
| BeijingKonkaElectronic | BeijingKonkaElectronicCo.,Ltd. |
| KonkaLeasing | KonkaFinancialLeasing(Tianjin)Co.,Ltd. |
| KonkaCircuit | ShenzhenKangjiacircuitCo.,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
| HainanTechnology | HainanKonkaTechnologyIndustryDevelopmentCo.,Ltd. |
| ShengxingIndustrial | ShenzhenKonkaShengxingIndustrialCo.,Ltd. |
| IndustrialParkDevelopment | ShenzhenKonkaIndustrialParkDevelopmentCo.,Ltd. |
| ZhitongTechnology | ShenzhenKonkaZhitongTechnologyCo.,Ltd. |
| Kangjiatong | SichuanKangjiatongTechnologyCo.,Ltd. |
| ElectronicsTechnology | ShenzhenKonkaElectronicsTechnologyCo.,Ltd. |
| XingDaHongYe | GuangDongXingDaHongYeElectronicCo.,Ltd. |
| ShanghaiXinfeng | ShanghaiXinfengZhuoqunPCBCo.,Ltd. |
| AnhuiZhilian | AnhuiKonkaZhilianE-CommerceCo.,Ltd. |
| NanjingKonka | NanjingKonkaSmartTechnologyCo.,Ltd. |
| Youzhihui | ShenzhenYouzhihuiTechnologyCo.,Ltd. |
| XiaojiaTechnology | ShenzhenXiaojiaTechnologyCo.,Ltd. |
| HaimenKonka | HaimenKonkaSmartTechnologyCo.,Ltd. |
| ChengduKonkaSmart | ChengduKonkaSmartTechnologyCo.,Ltd. |
| ChengduKonkaElectronic | ChengduKonkaElectronicCo.,Ltd. |
| EconTechnology | ShandongEconTechnologyCo.,Ltd. |
| BeijingEcon | BeijingEconRunfengTechnologyCo.,Ltd. |
| ShanghaiJiyi | ShanghaiJiyiEnvironmentalTechnologyCo.,Ltd. |
| BinzhouEconZhongke | BinzhouEconZhongkeEnvironmentalTechnologyCo.,Ltd. |
| LairunHolding | LaizhouLairunHoldingCo.,Ltd. |
| LairunEnvironmentalProtection | LaizhouLairunEnvironmentalProtectionCo.,Ltd. |
| LairunWastewater | LaizhouLairunWastewaterTreatmentCo.,Ltd. |
| BinhaiWastewater | LaizhouBinhaiWastewaterTreatmentCo.,Ltd. |
| EconEnvironmentalEngineering | EconEnvironmentalEngineeringCo.,Ltd. |
| RushanEcon | RushanEconWaterEnvironmentManagementCo.,Ltd. |
| BinzhouWeiyijie | BinzhouWeiyijieEnvironmentalTechnologyCo.,Ltd. |
| BinzhouBeihaiJingmai | BinzhouBeihaiJingmaiIndustrialDevelopmentCo.,Ltd. |
| Chunzhiran | YantaiChunzhiranEnvironmentalTechnologyCo.,Ltd. |
| DonggangKangrun | DonggangKangrunEnvironmentalManagementCo.,Ltd. |
| YantaiKangrun | Kangrunhongenvironmentalprotectiontechnology(Yantai)Co.,Ltd. |
| DayiKangrunWater | DayiKangrunWaterCo.,Ltd. |
| SuiningPengxiKangrun | SuiningPengxiKangrunEnvironmentalManagementCo.,Ltd. |
| SubeiKangrunWater | SubeiMongolAutonomousCountyKangrunWaterCo.,Ltd. |
| WeifangSihaiKangrun | WeifangSihaiKangrunInvestmentOperationCo.,Ltd. |
LushanKangrunEnvironmental
| LushanKangrunEnvironmental | LushanKangrunEnvironmentalManagementCo.,Ltd. |
| FunanKangrunWater | FunanKangrunWaterCo.,Ltd. |
| WuhanRunyuanWastewater | WuhanRunyuanWastewaterTreatmentCo.,Ltd. |
| TongchuanKangrunHonghui | TongchuanKangrunHonghuiEnvironmentalManagementCo.,Ltd. |
| BoxingXingkangEnvironmental | BoxingXingkangEnvironmentalTechnologyCo.,Ltd. |
| TingyuanEnvironmental | TingyuanEnvironmentalTechnology(Shanghai)Co.,Ltd. |
| YantaiKangyun | YantaiKangyunIndustrialDevelopmentCo.,Ltd. |
| YantaiLaikang | YantaiLaikangIndustrialDevelopmentCo.,Ltd. |
| KonkaHuanjia | KonkaHuanjia(Dalian)EnvironmentalTechnologyCo.,Ltd. |
| KonkaHuanjia(Henan) | KonkaHuanjia(Henan)EnvironmentalTechnologyCo.,Ltd. |
| ShanghaiKonka | ShanghaiKonkaIndustrialCo.,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)EnvironmentalTechnology | Kanghong(Yantai)EnvironmentalTechnologyParkCo.,Ltd. |
Park
| Park | |
| 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. |
| E3info | E3info(Hainan)TechnologyCo.,Ltd. |
| YifangTechnology | ShenzhenKonkaYifangTechnologyCo.,Ltd. |
| ZhongshanKangxin | ZhongshanKangxinElectronicTechnologyCo.,Ltd. |
| LiaoyangKangshun | LiaoyangKangshunIntelligentTechnologyCo.,Ltd. |
| NanjingKonkaElectronics | NanjingKonkaElectronicsCo.,Ltd. |
| GaopingKangrun | GaopingKangrunEnvironmentalProtection&WaterCo.,Ltd. |
| MengchengKangrun | MengchengKangrunAnjianWaterCo.,Ltd. |
| XixianKangrun | XixianKangrunXijianWaterEnvironmentDevelopmentCo.,Ltd. |
| MorsemiSemiconductor(HongKong) | MorsemiSemiconductorTechnology(HongKong)Limited |
| KangxingruiAutomobileRecycling | ChongqingKangxingruiScrapedAutomobileRecyclingCo.,Ltd. |
| KonkaXinyun | KonkaXinyunSemiconductorTechnology(Yancheng)Co.,Ltd. |
| ChongqingKanglei | ChongqingKangleiOptoelectronicTechnologyCo.,Ltd. |
| YibinKangrun | YibinKangrunEnvironmentalTechnologyCo.,Ltd. |
| CSRC | TheChinaSecuritiesRegulatoryCommission |
| SZSE | TheShenzhenStockExchange |
| CSRCShenzhen | TheShenzhenBureauoftheChinaSecuritiesRegulatoryCommission |
| RMB,RMB’0,000,RMB’00,000,000 | ExpressedintheChinesecurrencyofRenminbi,expressedintensofthousandsofRenminbi,expressedinhundredsofmillionsofRenminbi |
PartIICorporateInformationandKeyFinancialInformation
ICorporateInformation
Stockname
| 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.(ifany) | 康佳集团 | ||
| CompanynameinEnglish(ifany) | KONKAGROUPCO.,LTD | ||
| Abbr.(ifany) | KONKAGROUP | ||
| Legalrepresentative | LiuFengxi | ||
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 |
IIIOtherInformation
1.ContactInformationoftheCompanyIndicatebytickmarkwhetheranychangeoccurredtotheregisteredaddress,officeaddressandtheirzipcodes,websiteaddressandemailaddressoftheCompanyintheReportingPeriod.
□Applicable√NotapplicableNochangeoccurredtothesaidinformationintheReportingPeriod,whichcanbefoundinthe2019AnnualReport.
2.MediaforInformationDisclosureandPlacewherethisReportisLodgedIndicatebytickmarkwhetheranychangeoccurredtotheinformationdisclosuremediaandtheplaceforlodgingtheCompany’speriodicreportsintheReportingPeriod.
□Applicable√NotapplicableThenewspapersdesignatedbytheCompanyforinformationdisclosure,thewebsitedesignatedbytheCSRCfordisclosingtheCompany’speriodicreportsandtheplaceforlodgingsuchreportsdidnotchangeintheReportingPeriod.Thesaidinformationcanbefoundinthe2019AnnualReport.IVKeyFinancialInformationIndicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.
□Yes√No
H12020
| H12020 | H12019 | Change(%) | |
| Operatingrevenue(RMB) | 17,524,183,896.74 | 26,036,442,813.84 | -32.69% |
| Netprofitattributabletothelistedcompany’sshareholders(RMB) | 94,701,792.63 | 352,767,020.73 | -73.15% |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses(RMB) | -650,010,495.47 | -622,911,633.57 | -4.35% |
| Netcashgeneratedfrom/usedinoperatingactivities(RMB) | -1,076,366,927.48 | -2,042,956,171.77 | 47.31% |
| Basicearningspershare(RMB/share) | 0.0393 | 0.1465 | -73.17% |
| Dilutedearningspershare(RMB/share) | 0.0393 | 0.1465 | -73.17% |
| Weightedaveragereturnonequity(%) | 1.16% | 4.25% | -3.09% |
| 30June2020 | 31December2019 | Change(%) | |
| Totalassets(RMB) | 43,508,804,666.20 | 42,586,955,452.27 | 2.16% |
| Equityattributabletothelistedcompany’sshareholders(RMB) | 8,042,493,415.89 | 8,068,505,598.13 | -0.32% |
VAccountingDataDifferencesunderChina’sAccountingStandardsforBusinessEnterprises(CAS)andInternationalFinancialReportingStandards(IFRS)andForeignAccountingStandards
1.NetProfitandEquityunderCASandIFRS
□Applicable√Notapplicable
NosuchdifferencesfortheReportingPeriod.
2.NetProfitandEquityDifferencesunderCASandForeignAccountingStandards
□Applicable√NotapplicableNosuchdifferencesfortheReportingPeriod.XIExceptionalGainsandLosses
√Applicable□Notapplicable
Unit:RMB
Item
| Item | Amount | Note |
| Gainorlossondisposalofnon-currentassets(inclusiveofimpairmentallowancewrite-offs) | 560,267,507.91 | |
| Governmentsubsidieschargedtocurrentprofitorloss(exclusiveofgovernmentsubsidiesgivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsasperthegovernment’suniformstandards) | 305,771,698.07 | |
| Gainorlossonassetsentrustedtootherentitiesforinvestmentormanagement | 29,457,327.63 | |
| Gainorlossonfair-valuechangesintradingandderivativefinancialassetsandliabilities&incomefromdisposaloftradingandderivativefinancialassetsandliabilitiesandinvestmentsinotherdebtobligations(exclusiveoftheeffectiveportionofhedgesthatariseintheCompany’sordinarycourseofbusiness) | 40,692,289.31 | |
| Gainorlossonloanentrustments | 265,166.88 | |
| Non-operatingincomeandexpenseotherthantheabove | -607,468.60 | |
| Othergainsandlossesthatmeetthedefinitionofexceptionalgain/loss | 65,597,934.45 | |
| Less:Incometaxeffects | 174,757,890.66 | |
| Non-controllinginterestseffects(netoftax) | 81,974,276.89 | |
| Total | 744,712,288.10 |
ExplanationofwhytheCompanyreclassifiesasrecurrentanexceptionalgain/lossitemdefinedorlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems:
√Applicable□Notapplicable
| Item | Amountinvolved(RMB) | Reason |
| Taxrebatesonsoftware | 15,323,154.27 | GovernmentsubsidiesgivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsaspergovernment’suniformstandards |
PartIIIBusinessSummary
IPrincipalActivityoftheCompanyintheReportingPeriod(I)TheConsumerElectronicDivisionThisdivisionprimarilycomprisesthemultimediasub-divisionandthewhitegoodssub-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.(II)TheIndustryTradeBusinessIntheindustrytradebusiness,theCompanybenefitsfrompurchasingandprocessingICchips,LCDscreens,etc.,whicharerawmaterialsinitstraditionalcorebusiness,fromupstreamsuppliersandsellingthemtodownstreamcustomers.TheindustrytradebusinesscanhelptheCompanyestablish
goodrelationshipswithitsupstreamsuppliersanddownstreamcustomers,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,andintendstoengageinpackaging,testingandmarketingofstorageproducts.Inoptoelectronics,theCompanyprimarilydevelops,manufacturesandmarketsMicroLED-relatedproducts.IISignificantChangesinMajorAssets
1.SignificantChangesinMajorAssets
Majorassets
| Majorassets | Mainreasonforsignificantchanges |
| Equityassets | Nosignificantchange |
| Fixedassets | Nosignificantchange |
| Intangibleassets | Nosignificantchange |
| Constructioninprogress | Theendingamountofconstructioninprogressincreased14.00%fromthebeginningamount,primarilydrivenbynewenvironmentengineeringinprogress. |
2.MajorAssetsOverseas
□Applicable√NotapplicableIIICoreCompetitivenessAnalysisTheCompany’scorecompetitivenessliesinitsR&Dability,brand,marketingnetworkandhumanresources.Ithasdevelopedathree-levelR&Dsystemof“KonkaResearchInstitute-MultimediaR&DCentre-specializeddesigninstitutes”,withcloseto100coretechnologiesandapproximately
1,500R&Dpersonnel.Meanwhile,ithasintroducedapproximately100technologicalprofessionalsforitstwoprogramsofMicroLEDandmasterstoragechips.Italsoboastsastrongbrandpresenceamongconsumers,aswellasamongbanksandotherfinancingchannels.Additionally,itsdomesticmarketingandservicenetwork,includingmorethan40branchcompanies,over200officesandabout3,000after-salesservicestationsacrossthecountry,directlyconnecttoaround3,000retailterminals,alongwithawell-establishedoverseasmarketingnetwork.Meanwhile,ithashigh-levelpersonnelwithyearsofrichmanagementandindustryexperience,aswellasahigh-qualityteamwithstrongexecutioncapabilities.
PartIVOperatingPerformanceDiscussionandAnalysis
IOverviewIntheReportingPeriod,theCompanycarriedonwithitslong-termdevelopmentstrategyof“Technology+Industry+Parks”.Focusingon“Semiconductor+NewConsumerElectronics+TechnologyParks”,theCompanycontinuedtomovetowardsatechnology-drivenplatform.WhattheCompanyhasaccomplishedintheReportingPeriodissummarizedasfollows:
1.R&DinvestmentwassteppeduptohelptheCompanymovetowardsatechnologycompany.R&Dinvestmentincreased64.14%intheReportingPeriodcomparedtothesameperiodoflastyearandextendeditsreachtokeyareasintheupstreamoftheconsumerelectronicsindustry.Intermsofitsconsumerelectronicsbusiness,theCompanyactivelyintegratedcutting-edgetechnologiessuchas8K,5G,AIandIoTtoitsproducts.TheAPHAEA-A5AITVlaunchedbytheCompanyisamastercontrolsysteminsmarthomeforitcanconnecttoothersmartappliancesthroughvoicecontrol.Duringthenational“TwoSessions”in2020,theCompanytookpartinthebuildingofa“5G+8K”UHDlivebroadcastingsystemwithitsnewMicroLED8KTV.Theprogramof“5G+UHDEnd-to-EndLiveBroadcastingSystem”ledbytheCompanywasselectedinthe“Top10DemonstrationProgramsofShenzhenfor5GApplication”.TheprogramsoftheResearchandIndustrializationoftheNext-generationInternetIntelligentTerminalKeyTechnologyandtheAMethodforFuzzyControloftheRotatingSpeedofVariableFrequencyCompressorforRefrigerator,bothledbytheCompany,wontheGuangdongProvincialSecondPrizeforProgressinScienceandTechnologyandtheHenanProvinceScientificandTechnologicalAchievementAwardrespectively.Asfornewbusinesses,constructionoftheclosedbetatestbaseforsemiconductorinYanchenghascommenced;anddevelopmentofMicroLED-relatedtechnologiesandproductsisinsteadyprogress.
2.TheCompanycontinuedtoenhancebranding.DuringtheReportingPeriod,brandingwasenhancedtoboosttheappealoftheCompany’sbrandtotechnologyloversandyoungconsumersthroughthefollowingmeasures,includingparticipatinginChina’scentralTVstationCCTV’sTopNationalBrandspromotionprogram,planningeventssuchasthe40
thanniversaryofKonka,organizinga“5G+8K+satelite”UHDlivebroadcastingeventforfivecitiesinChinatotheaudienceendofXinhuaNews,beingtheonlycompanyintheindustrytosponsortheonlinedramaCrossFire(inChinese:《穿越火线》),etc.Brandingexpenditureincreased39.13%intheReportingPeriodcomparedtoayearago.
3.AffectedbytheCOVID-19pandemic,theCompanysawalossinthefirstquarterof2020.Asthepandemiciscontained,marketdemandisinrecoveryandtheCompanyadoptedvariouscost
actions,thesecondquarterof2020sawgradualimprovementintheCompany’soperatingperformance.However,duetoayear-on-yeardropof32.69%inoperatingrevenueintheReportingPeriod,netprofitattributabletothelistedcompany’sshareholderswasRMB95million,down
73.15%year-on-year.IIAnalysisofCoreBusinessesSee“IOverview”above.Year-on-yearchangesinkeyfinancialdata:
Unit:RMB
H12020
| H12020 | H12019 | Change(%) | Mainreasonforchange | |
| Operatingrevenue | 17,524,183,896.74 | 26,036,442,813.84 | -32.69% | Affectedbythepandemic |
| Costofsales | 16,268,993,432.88 | 24,674,042,371.13 | -34.06% | |
| Sellingexpense | 969,224,381.98 | 1,067,945,914.36 | -9.24% | |
| Administrativeexpense | 440,915,780.44 | 347,924,642.43 | 26.73% | |
| Financecosts | 387,040,866.75 | 414,260,463.03 | -6.57% | |
| Incometaxexpense | 73,425,522.47 | 10,311,393.19 | 612.08% | Disposalofassetsandreceiptofgovernmentsubsidies |
| R&Dexpense | 258,049,586.29 | 157,210,338.94 | 64.14% | IncreaseinR&Dinvestments |
| Netcashgeneratedfrom/usedinoperatingactivities | -1,076,366,927.48 | -2,042,956,171.77 | 47.31% | |
| Netcashgeneratedfrom/usedininvestingactivities | -142,693,107.96 | -673,736,084.26 | 78.82% | |
| Netcashgeneratedfrom/usedinfinancingactivities | 1,256,220,908.63 | 3,992,809,825.25 | -68.54% | NoexternalfinancingsofalargeamountintheReportingPeriod |
| Netincreaseincashandcashequivalents | 44,203,902.08 | 1,267,096,052.81 | -96.51% |
MaterialchangestotheprofitstructureorsourcesoftheCompanyintheReportingPeriod:
□Applicable√NotapplicableNosuchchanges.Breakdownofoperatingrevenue:
Unit:RMB
| H12020 | H12019 | Change(%) |
Operatingdivision,productcategoryoroperatingsegmentcontributingover10%ofoperatingrevenueoroperatingprofit:
√Applicable□Notapplicable
Unit:RMB
Operatingrevenue
| Operatingrevenue | Costofsales | Grossprofitmargin | YoYchangeinoperatingrevenue(%) | YoYchangeincostofsales(%) | YoYchangeingrossprofitmargin(%) | ||
| Byoperatingdivision | |||||||
| Electronics | 5,944,882,118.18 | 5,095,324,726.77 | 14.29% | -3.72% | -6.15% | 2.21% | |
| Environmentbusiness | 1,498,623,593.33 | 1,337,882,701.47 | 10.73% | -69.18% | -70.43% | 3.77% | |
| Industrytrade | 9,566,197,970.86 | 9,423,055,276.96 | 1.50% | -34.25% | -34.38% | 0.19% | |
| Byproductcategory | |||||||
| Operatingrevenue | As%oftotaloperatingrevenue(%) | Operatingrevenue | As%oftotaloperatingrevenue(%) | ||
| Total | 17,524,183,896.74 | 100% | 26,036,442,813.84 | 100% | -32.69% |
| Byoperatingdivision | |||||
| Electronics | 5,944,882,118.18 | 33.92% | 6,174,716,355.26 | 23.72% | -3.72% |
| Environmentbusiness | 1,498,623,593.33 | 8.55% | 4,863,145,443.76 | 18.68% | -69.18% |
| Industrytrade | 9,566,197,970.86 | 54.59% | 14,549,000,969.03 | 55.88% | -34.25% |
| Semiconductor | 223,849,167.50 | 1.28% | 118,013,037.16 | 0.45% | 89.68% |
| Other | 290,631,046.87 | 1.66% | 331,567,008.63 | 1.27% | -12.35% |
| Byproductcategory | |||||
| ColorTVs | 3,218,278,547.14 | 18.36% | 3,844,847,424.42 | 14.77% | -16.30% |
| Whitegoods | 1,918,628,399.97 | 10.95% | 1,637,709,425.79 | 6.29% | 17.15% |
| Environmentbusiness | 1,498,623,593.33 | 8.55% | 4,863,145,443.76 | 18.68% | -69.18% |
| Industrytrade | 9,566,197,970.86 | 54.59% | 14,549,000,969.03 | 55.88% | -34.25% |
| Semiconductor | 223,849,167.50 | 1.28% | 118,013,037.16 | 0.45% | 89.68% |
| Other | 1,098,606,217.94 | 6.27% | 1,023,726,513.68 | 3.93% | 7.31% |
| Byoperatingsegment | |||||
| Domestic | 10,681,530,016.92 | 60.95% | 16,274,631,867.43 | 62.51% | -34.37% |
| Overseas | 6,842,653,879.82 | 39.05% | 9,761,810,946.41 | 37.49% | -29.90% |
ColorTVs
| ColorTVs | 3,218,278,547.14 | 2,742,839,819.16 | 14.77% | -16.30% | -23.73% | 8.31% |
| Whitegoods | 1,918,628,399.97 | 1,650,949,066.11 | 13.95% | 17.15% | 22.69% | -3.88% |
| Environmentbusiness | 1,498,623,593.33 | 1,337,882,701.47 | 10.73% | -69.18% | -70.43% | 3.77% |
| Industrytrade | 9,566,197,970.86 | 9,423,055,276.96 | 1.50% | -34.25% | -34.38% | 0.19% |
| Byoperatingsegment | ||||||
| Domestic | 10,681,530,016.92 | 10,488,685,488.53 | 1.81% | -34.37% | -33.76% | -0.91% |
| Overseas | 6,842,653,879.82 | 5,780,307,944.35 | 15.53% | -29.90% | -34.62% | 6.09% |
CorebusinessdataoftheprioryearrestatedaccordingtothechangedstatisticalcaliberfortheReportingPeriod:
□Applicable√NotapplicableAnyover30%YoYmovementsinthedataaboveandwhy:
√Applicable□NotapplicableAffectedbythepandemic,theCompanyrecordedadecreaseinoperatingrevenueandcostofsalesintheReportingPeriod.IIIAnalysisofNon-CoreBusinesses
√Applicable□Notapplicable
Unit:RMB
| Amount | As%oftotalprofit | Source/Reason | Recurrentornot | |
| Returnoninvestment | 598,693,576.59 | 410.99% | TransferofequityinterestsinNanjingK-StarTechnologyParkOperationandManagementCo.,Ltd.inthecurrentperiod | Notrecurrent |
| Gain/lossonchangesinfairvalue | 0.00 | 0.00% | Notrecurrent | |
| Assetimpairments | -1,985,659.95 | -1.36% | Notrecurrent | |
| Non-operatingincome | 8,661,773.48 | 5.95% | Notrecurrent | |
| Non-operatingexpense | 7,136,875.35 | 4.90% | Notrecurrent |
IVAnalysisofAssetsandLiabilities
1.MaterialChangesinAssetComposition
Unit:RMB
30June2020
| 30June2020 | 31December2019 | Changeinpercentage(%) | Reasonformaterialchange | |||
| Amount | As%oftotalassets | Amount | As%oftotalassets | |||
| Monetaryassets | 6,417,472,335.73 | 14.75% | 5,670,267,120.55 | 14.95% | -0.20% | |
| Accountsreceivable | 5,723,176,839.47 | 13.15% | 5,468,498,179.21 | 14.41% | -1.26% | |
| Inventories | 5,532,819,450.49 | 12.72% | 5,810,235,773.06 | 15.31% | -2.59% | |
| Investmentproperty | 393,652,901.29 | 0.90% | 208,008,718.57 | 0.55% | 0.35% | |
| Long-termequityinvestments | 3,515,965,754.73 | 8.08% | 2,846,608,296.03 | 7.50% | 0.58% | |
| Fixedassets | 2,604,608,094.07 | 5.99% | 2,228,083,633.72 | 5.87% | 0.12% | |
| Constructioninprogress | 4,892,296,487.39 | 11.24% | 2,776,018,241.52 | 7.32% | 3.92% | |
| Short-termborrowings | 11,476,582,374.41 | 26.38% | 13,163,667,813.10 | 34.70% | -8.32% | |
| Long-termborrowings | 5,700,546,887.07 | 13.10% | 1,284,700,000.00 | 3.39% | 9.71% | |
2.AssetsandLiabilitiesatFairValue
√Applicable□Notapplicable
Unit:RMB
| Item | Beginningamount | Gain/lossonfair-valuechangesintheReportingPeriod | Cumulativefair-valuechangeschargedtoequity | ImpairmentallowancefortheReportingPeriod | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Otherchanges | Endingamount |
| Financialassets |
1.Tradingfinancialassets(derivativefinancialassetsexcluded)
| 1.Tradingfinancialassets(derivativefinancialassetsexcluded) | 61,494,666.97 | -61,494,666.97 | ||||||
| 4.Investmentsinotherequityinstruments | 21,642,170.36 | -9,800,000.00 | 1.00 | 21,642,171.36 | ||||
| Subtotaloffinancialassets | 83,136,837.33 | -9,800,000.00 | 1.00 | -61,494,666.97 | 21,642,171.36 | |||
| Others | 1,896,295,999.65 | -28,549,619.05 | 21,207,708.78 | 79,865,016.45 | -143,174,271.82 | 1,804,437,125.23 | ||
| Totaloftheabove | 1,979,432,836.98 | -28,549,619.05 | 11,407,708.78 | 79,865,017.45 | -204,668,938.79 | 1,826,079,296.59 |
Otherchanges
Unit:RMB
| Item | Beginningamount | Gain/lossonfair-valuechangesintheReportingPeriod | Cumulativefair-valuechangeschargedtoequity | ImpairmentallowancefortheReportingPeriod | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Otherchanges | Endingamount |
| Othernon-currentfinancialassets | 1,753,121,727.83 | -28,549,619.05 | 21,207,708.78 | 1,000,000.00 | 1,725,572,108.78 | |||
| Accountsreceivablefinancing | 143,174,271.82 | 78,865,016.45 | -143,174,271.82 | 78,865,016.45 |
SignificantchangestothemeasurementattributesofthemajorassetsintheReportingPeriod:
□Yes√No
3.RestrictedAssetRightsasatthePeriod-End
| Item | Endingcarryingvalue(RMB) | Reasonforrestriction |
| Monetaryassets | 1,879,566,516.43 | Amongthem,RMB1,842,648,357.77ismargindeposit,pledgeisusedforborrowingorissuingbankacceptancebill,RMB17,629,564.81isfinancialsupervisionaccountfund;RMB15,000,000.00isfixeddepositthatcannotbewithdrawninadvance;RMB4,288,593.85isrestrictedduetootherreasons. |
Item
| Item | Endingcarryingvalue(RMB) | Reasonforrestriction |
| Notesreceivable | 1,429,985,596.82 | ThecompanyusesthebankacceptancebillwithbookvalueofRMB1,429,985,596.82aspledgeforcomprehensivefinancingbusinesssuchasissuingbankacceptancebill,letterofcredit,letterofguarantee,tradefinancing,etc. |
| Fixedassets | 429,770,903.61 | Formortgageborrowings,financingleaseandmortgageguarantees. |
| Intangibleassets | 63,631,018.81 | Formortgageborrowingsandguarantees |
| Long-termreceivables | 349,314,656.44 | Forpledgeborrowings |
| Total | 4,152,268,692.11 |
VInvestmentsMade
1.TotalInvestmentAmount
√Applicable□Notapplicable
| TotalinvestmentamountintheReportingPeriod(RMB) | Totalinvestmentamountinthesameperiodoflastyear(RMB) | Change |
| 8,670,001.00 | 1,156,259,360.00 | -99.25% |
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 | 1,500,000.00 | 205,064,970.00 | Self-ownedfunds | N/A | 11March2017 | http://www.cninfo.com.cn/new/index | |||
| YibinKonkaSmartTerminalHigh-Tech | Self-build | Yes | Electronicindu | 14,179,510.64 | 107,255,345.86 | Self-ownedfund | N/A | 16December2017 |
Park
| Park | stry | s | |||||||||
| SuiningKonkaElectronicTechnologyIndustrialPark | Self-build | Yes | Electronicindustry | 54,035,333.77 | 117,356,811.54 | Self-ownedfunds | N/A | 17October2018 | |||
| Konka(Chuzhou)SmartAppliancesandEquipmentIndustrialPark | Self-build | Yes | Electronicindustry | 143,396,936.68 | 336,189,336.68 | Self-ownedfunds | N/A | 5December2018 | |||
| ChongqingKonkaSemiconductorPhotoelectricIndustrialPark | Self-build | Yes | Electronicindustry | 35,211,636.20 | 101,981,300.00 | Self-ownedfunds | N/A | 14June2019 | |||
| GuxianEnvironmentalProtectionTechnologyTown | Self-build | Yes | Environmentalprotectionindustry | 0 | 0 | Self-ownedfunds | N/A | 26November2019 | |||
| YanchengSemiconductorAssembly&TestBase | Other | Yes | Electronicindustry | 90,000 | 90,000 | Self-ownedfunds | N/A | 26November2019 | |||
| ManufacturingBaseofKonkaSmartTerminalforExport | Self-build | Yes | Electronicindustry | 0 | 0 | Self-ownedfunds | N/A | 6June2020 | |||
| Total | -- | -- | -- | 248,413,417.29 | 867,937,764.08 | -- | -- | -- | -- | -- |
Note:WithrespecttoKonkaSmartAppliancesandEquipmentIndustrialParkandYibinKonkaSmartTerminalsIndustrialPark,thelandsusedforprojectshavebeenobtained,amongwhich,theprojectofAnkangSmartPlanwillbecompletedanddeliveredforuseattheendoftheyearandtheYibinPlantwillbecompletedandacceptedattheendofSeptember.AsforDongguanKonkaSmartIndustrialPark,ChongqingKonkaSemiconductorPhotoelectricIndustrialPark,YanchengSemiconductorAssembly&TestBaseandSuiningKonkaElectronicTechnologyIndustrialPark,thelandhasbeenobtainedandareinconstruction.AsforManufacturingBaseofKonkaSmartTerminalforExportandGuxianEnvironmentalProtectionTechnologyTown,preparationsareunderwayandtheCompanyiswaitingforthelocalgovernmenttoputouttheprojecttargetlandforbids.
4.FinancialAssetsatFairValue
√Applicable□Notapplicable
Unit:RMB
Typeofassets
| Typeofassets | Initialinvestmentcost | Gain/lossonfairvaluechangesintheReportingPeriod | Accumulatedfairvaluechangesrecordedinequity | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Accumulatedreturnoninvestment | Endingamount | Fundingsource |
| Fund | 1,204,134,400.00 | -28,549,619.05 | 21,207,708.78 | 1,000,000.00 | 1,226,342,108.78 | Self-ownedfunds | ||
| Others | 735,341,109.15 | -9,800,000.00 | 78,865,017.45 | -204,668,938.79 | 3,405,333.03 | 599,737,187.81 | Self-ownedfunds | |
| Total | 1,939,475,509.15 | -28,549,619.05 | 11,407,708.78 | 79,865,017.45 | -204,668,938.79 | 3,405,333.03 | 1,826,079,296.59 | -- |
5.FinancialInvestments
(1)SecuritiesInvestments
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(2)InvestmentsinDerivativeFinancialInstruments
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.VISaleofMajorAssetsandEquityInvestments
1.SaleofMajorAssets
√Applicable□Notapplicable
| Counterparty | Assetssold | Dateofsale | Sellingprice(RMB’0,000) | Amountcontributedbythe | Effectofthesaleonthe | Amountcontributedby | Prici | Related-partytransactionornot | Relationshipbetweencounter | Ownershipfull | Creditanddebtinvolvingfully | Executedasscheduled | Disclosuredate | Indextodisclosedinformation |
assetsto
netincomeoftheCompanyfromperiod-beginnin
gtodateof
sale(RMB’0
,000)
| assetstonetincomeoftheCompanyfromperiod-beginningtodateofsale(RMB’0,000) | Company | thesaletonetincomeoftheCompanyasapercentageoftheCompany’snetincome(%) | ngprinciple | partyandtheCompany(ifapplicable) | ytransferredornot | transferredornot | ornot,ifnot,statereasonandactionstaken | |||||||
| ShenzhenKonkaHoldingsGroupCo.,Ltd. | 68patentsrelatedtocloudbigdataoperation | 23June2020 | 9,860 | 0 | OptimizingtheCompany’sallocationofassets,increasingcapitalliquidity | 120.29% | Assessedvalue | Yes | Thesameactualcontroller | Yes | Yes | Yes | 24June2020 | http://www.cninfo.com.cn/new/index |
2.SaleofMajorEquityInvestments
√Applicable□Notapplicable
| Counterparty | Equityinterestssold | Dateofsale | Sellingprice(RMB’0,000) | AmountcontributedbytheequityintereststonetincomeoftheCompanyfromperiod-beginningtodateofsale(RMB’0,0 | EffectofthesaleontheCompany | AmountcontributedbythesaletonetincomeoftheCompanyasapercentageoftheCompany’snetincome | Pricingprinciple | Related-partytransactionornot | RelationshipbetweencounterpartyandtheCompany | Ownershipfullytransferredornot | Executedasscheduledornot,ifnot,statereasonandactionstaken | Disclosuredate | Indextodisclosedinformation |
00)
| 00) | (%) | ||||||||||||
| ShenzhenKonkaHoldingsGroupCo.,Ltd. | 34%equityofNanjingK-StarTechnologicalIndustrialParkManagementCo.,Ltd. | 28June2020 | 47,098.65 | 0.00 | OptimizingtheCompany’sallocationofassets,increasingcapitalliquidity | 455.41% | Assessedvalue | Yes | Thesameactualcontroller | Yes | Yes | 6June2020 | http://www.cninfo.com.cn/new/index |
VIIPrincipalSubsidiariesandJointStockCompanies
√Applicable□NotapplicablePrincipalsubsidiariesandjointstockcompanieswithanover10%effectontheCompany’snetprofit:
Unit:RMB
| Name | RelationshipwiththeCompany | Principalactivity | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
| ShandongEconTechnologyCo.,Ltd.(Consolidated) | Subsidiary | Publicservice-watermanagement | RMB164,000,000 | 7,882,643,993.35 | 1,255,626,825.87 | 725,770,854.14 | 102,877,541.08 | 96,019,839.22 |
| ChongqingKonkaOptoelectronicTechnologyResearchInstituteCo.,Ltd. | Subsidiary | R&D,manufacturingandsalesofsemiconductors,optoelectronicdevicesanddisplayscreens | RMB2,000,000,000 | 1,521,459,475.85 | 1,191,679,182.60 | 226,762,578.21 | 65,571,106.28 | 44,647,457.62 |
ShenzhenWankaidaScienceandTechnologyCo.,Ltd.
| ShenzhenWankaidaScienceandTechnologyCo.,Ltd. | Subsidiary | Productionandsaleofmultimediaproducts | RMB10,000,000 | 179,353,268.36 | 173,363,831.34 | 47,552,440.00 | 49,160,831.29 | 36,671,193.40 |
| HongKongKonkaCo.,Ltd. | Subsidiary | Export&importofelectromechanicalandelectronics | HKD500,000 | 3,004,127,739.56 | 214,649,640.19 | 2,006,249,547.46 | 42,505,580.95 | 32,306,574.92 |
| E2info | Subsidiary | Internetandrelatedservices | RMB20,174,070.81 | 376,426,447.59 | 219,571,198.90 | 141,093,463.01 | 32,982,960.46 | 28,031,548.28 |
| KonkaElectricalAppliancesInternationalTradingCo.,Ltd. | Subsidiary | Export&importofelectromechanicalandelectronics | HKD500,000 | 1,324,162,526.21 | -132,098,105.54 | 590,271,535.69 | 25,941,607.95 | 25,941,607.95 |
| JialiInternational(HongKong)Limited | Subsidiary | Electronicstrade,storageandtransportation | HKD5,000,000 | 773,724,592.53 | 41,435,274.49 | 3,092,214,040.05 | 16,984,571.43 | 16,984,573.01 |
| ChainKingdomMemoryTechnologiesCo.,Limited | Subsidiary | Thesupplychainmanagementbusiness | USD1,500,000 | 1,401,789,580.60 | 116,025,039.74 | 1,974,917,750.88 | 14,758,544.63 | 12,234,256.61 |
| ChongqingKangxingruiEnvironmentalTechnologyCo.,Ltd. | Subsidiary | Processingtrade-renewableresources | RMB50,000,000 | 295,163,615.99 | 66,495,695.81 | 772,969,446.01 | 11,944,497.83 | 11,647,970.43 |
| SuiningKonkaIndustrialParkDevelopmentCo.,Ltd. | Subsidiary | Industrialparkdevelopmentandconstruction,operationandmanagement | RMB200,000,000 | 527,541,315.88 | 525,930,190.00 | - | 15,273,786.45 | 11,199,972.51 |
AnhuiKonkaTongchuangElectricalAppliancesCo.,Ltd.
| AnhuiKonkaTongchuangElectricalAppliancesCo.,Ltd. | Subsidiary | Manufacturingandsalesofhouseholdappliancessuchasrefrigeratorsandwashingmachines | RMB502,000,000 | 1,848,443,634.26 | 408,897,890.50 | 1,169,027,231.72 | 11,781,870.73 | 12,529,053.61 |
SubsidiariesobtainedordisposedofintheReportingPeriod:
√Applicable□Notapplicable
| Subsidiary | HowsubsidiarywasobtainedordisposedintheReportingPeriod | Effectsonoveralloperationsandoperatingperformance |
| ZhongshanKangxinElectronicTechnologyCo.,Ltd. | Newlyestablished | BeneficialtothedevelopmentoftheCompany’srelevantbusiness |
| LiaoyangKangshunIntelligentTechnologyCo.,Ltd. | Newlyestablished | |
| NanjingKonkaElectronicsCo.,Ltd. | Newlyestablished | |
| GaopingKangrunEnvironmentalProtection&WaterCo.,Ltd. | Newlyestablished | |
| MengchengKangrunAnjianWaterCo.,Ltd. | Newlyestablished | |
| XixianKangrunXijianWaterEnvironmentDevelopmentCo.,Ltd. | Newlyestablished | |
| MorsemiSemiconductorTechnology(HongKong)Limited | Newlyestablished | |
| ChongqingKangxingruiScrapedAutomobileRecyclingCo.,Ltd. | Newlyestablished | |
| KonkaXinyunSemiconductorTechnology(Yancheng)Co.,Ltd. | Newlyestablished | |
| ChongqingKangleiOptoelectronicTechnologyCo.,Ltd. | Newlyestablished | |
| YibinKangrunEnvironmentalTechnologyCo.,Ltd. | Newlyestablished | |
| YuekangSemiconductorTechnology(Yantai)Co.,Ltd. | De-registered | Nomaterialinfluence |
| E3info(Hainan)TechnologyCo.,Ltd. | Transferequity | BeneficialtothedevelopmentoftheCompany’srelevantbusinessandbringaboutacertainamountofgains |
| ShenzhenKangjiaYifangTechnologyCo.,Ltd. |
Informationaboutprincipalsubsidiariesandjointstockcompanies:
NoneVIIIStructuredBodiesControlledbytheCompany
□Applicable√NotapplicableIXOperatingPerformanceForecastforJanuary-September2020WarningofaforecastnegativenetprofitfortheJanuary-SeptemberperiodofthecurrentyearoraconsiderableYoYchangetherein,aswellasthereasons:
□Applicable√NotapplicableXRisksFacingtheCompanyandCountermeasuresConsumerElectronicDivision:AffectedbyCOVID-19andtheincreasinglyintenseindustrialcompetition,theCompanyexperiencedadeclineinthebusinessperformanceofthisdivision.Itwilltakeacombinationofmeasures,includingincreasingR&Dspending,speedinguptheconversionofachievements,integratingupstreamanddownstreamresourcesandstrengtheningbusinesscollaboration,toenhanceproductcompetitivenessandimprovetheuseroperationlevel.Itwillalsoproactivelyaddressrisksthroughstrongerinternalmanagementandotherrelatedmeasures.EnvironmentalProtectionDivision&Semi-ConductorDivision:Intheenvironmentalprotectionarea,theCompanyhaswonenvironmentalprotectionprojectswithatotalcontractamountofmorethanRMB10billion,whichraiseshigherrequirementsontheCompany’smanagementandoperationcapacity.TheCompanywillactivelypromotethehighlyefficientoperationofexistingprojects,andengageincontinuousinnovationtoenhancethedata-andintelligence-basedlevelofenvironmentalprotectionanddrivetheefficientimplementationofoperationmanagement.Inthesemi-conductorarea,facingtheincreasingR&DspendinganduncertaintiesintheR&Dresults,theCompanywillstepupefforttoexpandbusinessintheareasofstorage,optoelectronicsandsemi-conductorapplicationandservice,andmakeactivestepstobreakthroughthetechnologicalbottleneckofMicroLEDbusinesstowardsfasterconversionandoutputoftechnology.
PartVSignificantEvents
IAnnualandExtraordinaryGeneralMeetingConvenedduringtheReportingPeriod
1.GeneralMeetingsConvenedduringtheReportingPeriod
Meeting
| Meeting | Type | Investorparticipationratio | Dateofthemeeting | Dateofdisclosure | Indextodisclosedinformation |
| The2019AnnualGeneralMeeting | AnnualGeneralMeeting | 24.38% | 18May2020 | 19May2020 | http://www.cninfo.com.cn/new/index |
| TheFirstExtraordinaryGeneralMeetingof2020 | ExtraordinaryGeneralMeeting | 24.32% | 22June2020 | 23June2020 |
2.ExtraordinaryGeneralMeetingsConvenedattheRequestofPreferenceShareholderswithResumedVotingRights
□Applicable√NotapplicableIIInterimDividendPlan
□Applicable√NotapplicableTheCompanyhasnointerimdividendplan,eitherintheformofcashorstock.IIICommitmentsoftheCompany’sDeFactoController,Shareholders,RelatedPartiesandAcquirers,aswellastheCompanyItselfandOtherEntitiesFulfilledintheReportingPeriodorOngoingatthePeriod-End
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.IVEngagementandDisengagementofIndependentAuditorAretheinterimfinancialstatementsaudited?
□Yes√NoTheinterimfinancialstatementsoftheCompanyhavenotbeenaudited.VExplanationsGivenbytheBoardofDirectorsandtheSupervisoryCommitteeRegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsoftheReportingPeriod
□Applicable√NotapplicableVIExplanationsGivenbytheBoardofDirectorsRegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsofLastYear
□Applicable√Notapplicable
VIIInsolvencyandReorganization
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.VIIILegalMattersSignificantlawsuitsandarbitrations:
√Applicable□Notapplicable
Generalinformation
| 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 | Thejudgmentofthefirstinstancehasbeenmade. | TheCompanywonthecase.Basedontheprincipleofprudence,theCompanyhaswithdrawnrelevantimpairmentprovisionaccordingto | Thecourthasadoptedpropertypreservationandnowthejudgmentofthefirstinstanceisbeingserved. |
accountingpolicies.
| accountingpolicies. | |||||
| 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. | Thecaseisontrialandnoeffectiveverdicthasbeenissued.Basedontheprincipleofprudence,theCompanyhaswithdrawnrelevantimpairmentprovisionaccordingtoaccountingpolicies. | Thecourthasadoptedpropertypreservation.Thecaseisontrialandnoeffectiveverdicthasbeenissued. |
| Asmaturednoteswerefailedtobeaccepted,theCompanyhasfiledalawsuitwiththecourttorequestHefeiHuajunTradingCo.,Ltd.andWuhanJialianAgriculturalTechnologyDevelopmentCo.,Ltd.topaythebillandthecorrespondinginteresttotheCompany. | 8,000 | Not | Thecaseisattrial.Thecourthasadoptedpropertypreservation. | Thecaseisontrial.Basedontheprincipleofprudence,theCompanyhaswithdrawnrelevantimpairmentprovisionaccordingtoaccounting | Suitpending |
policies.
| policies. | |||||
| 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.So | 31,375.8 | Yes | Thecaseisatthesecondtrial | Thecaseisawaitingthesecondtrial.ThecorrespondingliabilityofriskassumedbytheCompany'scontrolledcompaniesinvolvedinthecaseiscontrollable.OtherdefendantsexclusiveofthecontrolledcompaniesoftheCompanyaresolvent,andatthesametime,theCompanyhasoutstandingpaymentstotheotherdefendantsinthiscase.TheaboveamountcanbeoffsetagainsttheCompany’sdebtobligationsinthefuture.Basedon | Suitpending |
far,thecasehasnotyetbeenheardincourt.
| far,thecasehasnotyetbeenheardincourt. | theprincipleofprudence,theCompanyhaswithdrawnrelevantimpairmentprovisionaccordingtoaccountingpolicies. | ||||
| Duetothedisputeofsalescontract,WumartChainCo.,Ltd.suedtheBeijingBranchofWumarttothecourtofShijingshanDistrictofBeijing,andrequestedtheBeijingBranchtoreturntheprepaymentofgoods. | 1,073.67 | Not | Thecaseisonthesecondtrial. | Thecaseisawaitingtrial/judgment.Basedontheprincipleofprudence,theCompanyhaswithdrawnrelevantimpairmentprovisionaccordingtoaccountingpolicies. | Suitpending |
Otherlegalmatters:
□Applicable√NotapplicableIXDoubtsfromMedia
□Applicable√NotapplicableTheCompanyhadnoissuesaboutwhichmediagenerallyraiseddoubtsintheReportingPeriod.XPunishmentsandRectifications
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XICreditQualityoftheCompanyaswellasitsControllingShareholderandDeFactoController
□Applicable√NotapplicableXIIEquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
XIIIMajorRelated-PartyTransactions
1.ContinuingRelated-PartyTransactions
√Applicable□Notapplicable
Relatedparty
| 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 | Purchaseofmaterialsandservices | Negotiatedprice | Marketprice | 1,782.38 | 0.11% | 3,000 | Not | Cash | N/A | 22April2020 | http://www.cninfo.com.cn/new/index | |
| OCTEnterprisesCo.,Ltdanditssubsidiaries | Underthesameactualcontroller | Salesofgoodsandservices | SalesofLCDandservices | Negotiatedprice | Marketprice | 939.32 | 0.29% | 20,000 | Not | Cash | N/A | 22April2020 | ||
| Total | -- | -- | 2,721.70 | 23,000 | -- | -- | -- | -- | -- | |||||
| Large-amountsalesreturnindetail | N/A | |||||||||||||
| GivetheactualsituationintheReportingPeriod(ifany)whereanestimatehadbeenmadeforthetotalvalueofcontinuingrelated-partytransactionsbytypetooccurintheReportingPeriod | TheCompanyhaspublishedtheForecastingPublicNoticeonRoutineRelated-partyTransactionforY2020onSecuritiesTimes,ShanghaiSecuritiesNews,andChinaSecuritiesJournalaswellastheInternetwebsitedesignatedbyCSRChttp://http://www.cninfo.com.cn/new/indexon22April2020.IntheReportingPeriod,thebasisforpricing,transactionprice,transactionamountandsettlementmethodsofrawmaterialspurchasedbytheCompanywerebasicallyinaccordancewiththeforecast.ThetotalamountwasRMB27.217million. | |||||||||||||
| Reasonforanysignificantdifferencebetweenthetransactionpriceandthemarketreferenceprice(ifapplicable) | N/A | |||||||||||||
2.Related-PartyTransactionsRegardingPurchaseorDisposalofAssetsorEquityInvestments
√Applicable□NotapplicableRefertoPartV-XIII-5.OtherMajorRelated-PartyTransactionsfordetails.
3.Related-PartyTransactionsRegardingJointInvestmentsinThirdParties
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
4.CreditsandLiabilitieswithRelatedParties
√Applicable□NotapplicableIndicatebytickmarkwhethertherewereanycreditsandliabilitieswithrelatedpartiesfornon-operatingpurposes.
√Yes□NoCreditsreceivablewithrelatedparties:
Relatedparty
| 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% | 288.17 | 10,000 |
| ChuzhouKangjinHealthIndustryDevelopmentCo.,Ltd. | Subsidiaryofcontrollingshareholder | Demandofbusinessdevelopment | No | 5,880 | 11,270 | 0 | 7.00% | 439.4 | 17,150 |
| 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. | Controllingshareholde | TheCompanyappliesentrustedloantoit | 150,000.00 | 150,000.00 | 4.06% | 2,926.58 | 0 |
r
| r | 93,406.00 | 93,406.00 | 4.14% | 1,904.75 | 0 | ||||
| 90,000.00 | 6,594.00 | 3.93% | 1,786.71 | 83,406.00 | |||||
| EffectsofliabilitieswithrelatedpartiesontheCompany’soperatingresultsandfinancialconditions | TheCompanyappliesentrustedloanfromOCTEnterprisesCo.,Ltd.whichmeetstheneedsofthecompany'sexistingbusinessdevelopmentandreducesthefinancingcost. | ||||||||
5.OtherMajorRelated-PartyTransactions
√Applicable□Notapplicable
(1)Transferring34%equityofNanjingK-StarScienceandTechnologyIndustryParkOperationandManagementCo.,Ltd.:AttheTwenty-EighthMeetingoftheNinthSessionoftheBoardofDirectorson5June2020andtheFirstExtraordinaryGeneralMeetingof2020on22June2020,theCompanyconsideredandapprovedtheProposalontheTransferof34%EquityofNanjingK-StarScienceandTechnologyIndustryParkOperationandManagementCo.,Ltd..Accordingtothedecision,theCompanywouldtransfertoShenzhenKonkaHoldingsGroupCo.,Ltd.34%equityofNanjingK-Staritheldthroughnon-disclosureagreementatapriceofRMB470,986,500.Asofnow,theCompanyhasreceivedallequitytransferpaymentsandshareholders’borrowings,andtheadministrativeproceduresforchangesinthebusinessregistrationofNanjingK-StarScienceandTechnologyIndustryParkOperationandManagementCo.,Ltd.havebeencompleted.
(2)Transferringsomepatentsinrelationtocloudbigdataoperations:AttheTwenty-NinthMeetingoftheNinthSessionoftheBoardofDirectorson23June2020,theCompanyconsideredandapprovedtheProposalontheTransferofSomePatentsinRelationtoCloudBigData.Accordingtothedecision,theCompanywouldtransfertoShenzhenKonkaHoldingsGroupCo.,Ltd.68patentsinrelationtocloudbigdataatapriceofRMB98,600,000.Asofnow,theCompanyhasreceivedthepatenttransferpaymentfromShenzhenKonkaHoldingsGroupCo.,Ltd.,andtheadministrativeproceduresforchangesintheregistrationofpatenteehavebeencompleted.
(3)InitiatingtheestablishmentofWuzhenJiayuDigitalEconomyIndustryFund:AttheTwenty-FourthMeetingoftheNinthSessionoftheBoardofDirectorson27March2020andtheAnnualGeneralMeetingof2019on18May2020,theCompanyconsideredandapprovedtheProposalonInitiatingtheEstablishmentofWuzhenJiayuDigitalEconomyIndustryFund.Accordingtothedecision,theCompany(oritswholly-ownedsubsidiary)wouldcontributeacapitalofnomorethanRMB200millionasalimitedpartnertoinitiatetheestablishmentofWuzhenJiayuDigitalEconomyIndustryFundofnomorethanRMB500milliontogetherwiththecooperator.Asofnow,businessregistrationfortheFundhasbeencompleted.FilingwithAssetManagementAssociationofChinaisinprogress.
(4)Signingwiththesubscriptionobjectaterminationcontractforthesharesubscriptionagreementwithconditionalentryintoforce:AttheTwenty-SeventhMeetingoftheNinthSessionoftheBoardofDirectorsandtheEighthMeetingoftheNinthSessionoftheBoardofSupervisorson22May
2020,theCompanyconsideredandapprovedtheProposalontheCompanySigningwiththeSubscriptionObjecta‘TerminationContractfortheShareSubscriptionAgreementwithConditionalEntryintoForce’.ItwasagreedthattheCompanywouldsigntheTerminationContractfortheShareSubscriptionAgreementwithConditionalEntryintoForcewithShenzhenOverseasChineseTownCapitalInvestmentManagementCo.,Ltd.(hereinafterreferredtoas“OCTCapital”),awholly-ownedsubsidiaryofOCTGroup.Asofnow,theCompanyhasenteredintotheTerminationContractfortheShareSubscriptionAgreementwithConditionalEntryintoForce,specifyingtheterminationoftheAgreementfortheSubscriptionofNon-PublicOfferingofStockwithConditionalEntryintoForcesignedbyandbetweentheCompanyandOCTCapitalon28March2019.
(5)ProvidingadvertisingservicestoOCTGroup:AttheTwenty-EighthMeetingoftheNinthSessionoftheBoardofDirectorson5June2020,theCompanyconsideredandapprovedtheProposalonProvidingAdvertisingServicestoOCTGroup.Accordingtothedecision,theCompanywouldprovideOCTGroupwithadvertisingservicesatintelligentterminalswithaservicetransactionpriceofRMB100million.Indextothepublicannouncementsaboutthesaidrelated-partytransactionsdisclosed
Titleofpublicannouncement
| Titleofpublicannouncement | Disclosuredate | Disclosurewebsite |
| ProposalonInitiatingtheEstablishmentofWuzhenJiayuDigitalEconomyIndustryFundandRelated-partyTransaction | 28March2020 | http://www.cninfo.com.cn/new/index |
| AnnouncementontheCompanySigningwiththeSubscriptionObjecta‘TerminationContractfortheShareSubscriptionAgreementwithConditionalEntryintoForce’andRelated-partyTransaction | 23May2020 | |
| AnnouncementonProvidingAdvertisingServicestoOCTGroupandRelated-partyTransaction | 6June2020 | |
| AnnouncementontheTransferof34%EquityofNanjingK-StarScienceandTechnologyIndustryParkOperationandManagementCo.,Ltd.andRelated-partyTransaction | 6June2020 | |
| AnnouncementontheTransferofSomePatentsinRelationtoCloudBigDataandRelated-partyTransaction | 24June2020 | |
| AnnouncementonCompletingChangesofRegistrationfortheTransferof34%EquityofNanjingK-StarScienceandTechnologyIndustryParkOperationandManagementCo.,Ltd. | 30June2020 | |
| AnnouncementonProgressoftheTransferofSomePatentsinRelationtoCloudBigData | 1July2020 |
XIVOccupationoftheCompany’sCapitalbytheControllingShareholderoranyofItsRelatedPartiesforNon-OperatingPurposes
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.XVMajorContractsandExecutionthereof
1.Entrustment,ContractingandLeases
(1)Entrustment
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(2)Contracting
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(3)Leases
√Applicable□NotapplicableNotetoleasesNosignificantleasesintheReportingPeriod.TherentofKonkaDevelopmentBuildinghasreceivedRMB35.6573millionintheReportingPeriod.Theprojectbringingaboutgainsorlossesasover10%oftotalprofitintheReportingPeriod
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.MajorGuarantees
√Applicable□Notapplicable
(1)Guarantees
Unit:RMB'0,000
GuaranteesprovidedbytheCompanyanditssubsidiariesforexternalparties(exclusiveofthoseforsubsidiaries)
| GuaranteesprovidedbytheCompanyanditssubsidiariesforexternalparties(exclusiveofthoseforsubsidiaries) | ||||||||
| Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| YibinOCTSanjiangPropertiesCo.,Ltd. | 19September2018 | 40,000 | 29September2019 | 14,000 | Joint-liability | Threeyears | Not | Yes |
| KunshanKangshengInvestmentDevelopmentCo.,Ltd. | 19September2018 | 24,500 | 23September2019 | 24,500 | Joint-liability | Threeyears | Not | Yes |
| JiangxiXinxin | — | 10,000 | 12December | 10,000 | Joint-liability | Two | Not | Not |
Jian’anEngineeringCo.,Ltd.
| Jian’anEngineeringCo.,Ltd. | 2016 | years | ||||||
| JiangxiZhongyiDecorationMaterialsCo.,Ltd. | — | 10,000 | 12December2016 | 10,000 | Joint-liability | Twoyears | Not | Not |
| JiangxiShanshiTechnologicalDevelopmentCo.,Ltd. | — | 10,000 | 12December2016 | 10,000 | Joint-liability | Twoyears | Not | Not |
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(A1) | 39,200 | TotalactualamountofsuchguaranteesintheReportingPeriod(A2) | 0 | |||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(A3) | 133,700 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(A4) | 68,500 | |||||
| GuaranteesprovidedbetweentheCompanyandsubsidiaries | ||||||||
| Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| EconTechnology | 19September2018 | 120,000 | 23April2019 | 2,000 | Joint-liability | Oneandahalfyears | Not | Not |
| 28October2019 | 3,000 | Joint-liability | Oneyear | Not | Not | |||
| 31March2020 | 5,000 | Joint-liability | Oneyear | Not | Not | |||
| 29April2020 | 8,800 | Joint-liability | Oneyear | Not | Not | |||
| 25May2020 | 5,000 | Joint-liability | Oneyear | Not | Not | |||
| 5June2020 | 24,000 | Joint-liability | Oneyear | Not | Not | |||
| XingDaHongYe | 19September2018and30March2019 | 12,500 | 21November2018 | 5,800 | Joint-liability | Twoyears | Not | Not |
| 9December2019 | 2,500 | Joint-liability | Twoanda | Not | Not | |||
halfyears
| halfyears | ||||||||
| 15June2020 | 3,300 | Joint-liability | Oneyear | Not | Not | |||
| PengrunTechnology | 19September2018 | 20,000 | 24June2019 | 5,000 | Joint-liability | Oneandahalfyears | Not | Not |
| JiangxiKonka | 31October2018 | 60,000 | 4December2018 | 10,000 | Joint-liability | Twoyears | Not | Not |
| 7December2018 | 5,000 | Joint-liability | Twoyears | Not | Not | |||
| 18March2019 | 11,961 | Joint-liability | Twoyears | Not | Not | |||
| 26June2019 | 5,500 | Joint-liability | Threeyears | Not | Not | |||
| 30October2019 | 6,500 | Joint-liability | Threeyears | Not | Not | |||
| 20March2020 | 990 | Joint-liability | Twoyears | Not | Not | |||
| 28June2020 | 6,000 | Joint-liability | Oneyear | Not | Not | |||
| XinfengMicrocrystalline | 30March2019 | 25,000 | 27December2019 | 7,200 | Joint-liability | Oneyear | Not | Not |
| 19May2020 | 5,000 | Joint-liability | Threeyears | Not | Not | |||
| 29May2020 | 3,479 | Joint-liability | Twoyears | Not | Not | |||
| 18June2020 | 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 | |||
| 8January2020 | 5,000 | Joint-liability | Twoyears | Not | Not | |||
| 8January2020 | 5,000 | Joint-liability | Threeyears | Not | Not | |||
| 20March2020 | 990 | Joint-liability | Twoyears | Not | Not |
29May202
| 29May2020 | 5,975 | Joint-liability | Twoyears | Not | Not | |||
| 24June2020 | 7,000 | Joint-liability | Oneyear | Not | Not | |||
| AnhuiKonka | 31March2017 | 110,000 | 31July2019 | 26,800 | Joint-liability | Oneyear | Not | Not |
| 19August2019 | 8,000 | Joint-liability | Oneyear | Not | Not | |||
| AnhuiTongchuang | 31March2017,23May2018and19September2018 | 90,000 | 1August2019 | 4,500 | Joint-liability | Oneyear | Not | Not |
| 7November2019 | 5,500 | Joint-liability | Oneyear | Not | Not | |||
| 25December2019 | 5,000 | Joint-liability | Oneyear | Not | Not | |||
| 13January2020 | 3,500 | Joint-liability | Oneyear | Not | Not | |||
| 24June2019 | 3,000 | Joint-liability | Oneyear | Not | Not | |||
| 5November2019 | 3,000 | Joint-liability | Oneyear | Not | Not | |||
| 11March2020 | 5,800 | Joint-liability | Oneyear | Not | Not | |||
| ElectronicsTechnology | 19September2018 | 350,000 | 18April2019 | 58,000 | Joint-liability | Oneandahalfyears | Not | Not |
| 20June2019 | 5,000 | Joint-liability | Twoyears | Not | Not | |||
| 7January2020 | 50,000 | Joint-liability | Oneyear | Not | Not | |||
| 9June2020 | 6,000 | Joint-liability | Oneyear | Not | Not | |||
| SichuanKonka | 31March2018 | 55,000 | 18March2019 | 4,000 | Joint-liability | Threeyears | Not | Not |
| BoluoKonkaPrecision | 31March2018 | 5,000 | 20February2019 | 2,500 | Joint-liability | Twoyears | Not | Not |
| DongguanKonka | 19September2018 | 10,000 | 8November2019 | 2,000 | Joint-liability | Fiveyears | Not | Not |
| 16January2020 | 3,000 | Joint-liability | Oneyear | Not | Not |
HongKongKonka
| HongKongKonka | 31March2017and31October2018 | 355,000 | 18July2019 | 9,557 | Joint-liability | Oneyear | Not | Not | |||
| 15November2019 | 9,522 | Joint-liability | Oneyear | Not | Not | ||||||
| 6March2020 | 14,159 | Joint-liability | Oneyear | Not | Not | ||||||
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(B1) | 38,000 | TotalactualamountofsuchguaranteesintheReportingPeriod(B2) | 185,193 | ||||||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(B3) | 1,986,052 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(B4) | 401,033 | ||||||||
| Guaranteesprovidedbetweensubsidiaries | |||||||||||
| Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot | |||
| SichuanKonka | — | 14,000 | 28May2018 | 14,000 | Joint-liability | Sevenyears | Not | Not | |||
| XingDaHongYe | — | 1,000 | 13November2018 | 950 | Joint-liability | Twoyears | Not | Not | |||
| RushanYikeWaterEnvironmentManagementCo.,Ltd. | — | 29,000 | 29December2016 | 29,000 | Joint-liability | Tenyears | Not | Not | |||
| WuhanRunyuanWastewaterTreatmentCo.,Ltd. | 21January2020 | 55,200 | 20January2020 | 55,200 | Joint-liability | Twentyyears | Not | Not | |||
| SubeiMongolAutonomousCountyKangrunWaterCo.,Ltd. | 24March2020 | 77,600 | 10March2020 | 77,600 | Joint-liability | Fifteenyears | Not | Not | |||
| DayiKangrunWaterCo.,Ltd. | 13May2020 | 27,400 | 29April2020 | 27,400 | Joint-liability | Fifteenyears | Not | Not | |||
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(C1) | 178,200 | TotalactualamountofsuchguaranteesintheReportingPeriod(C2) | 160,200 | ||||||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(C3) | 204,200 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(C4) | 204,150 | ||||||||
Totalguaranteeamount(totalofthethreekindsofguaranteesabove)
| Totalguaranteeamount(totalofthethreekindsofguaranteesabove) | |||
| TotalguaranteelineapprovedintheReportingPeriod(A1+B1+C1) | 255,400 | TotalactualguaranteeamountintheReportingPeriod(A2+B2+C2) | 345,393 |
| TotalapprovedguaranteelineattheendoftheReportingPeriod(A3+B3+C3) | 2,323,952 | TotalactualguaranteebalanceattheendoftheReportingPeriod(A4+B4+C4) | 673,683 |
| Totalactualguaranteeamount(A4+B4+C4)as%oftheCompany’snetassets | 83.77% | ||
| Ofwhich: | |||
| Balanceofguaranteesprovidedforshareholders,actualcontrollerandtheirrelatedparties(D) | 38,500 | ||
| Balanceofdebtguaranteesprovideddirectlyorindirectlyforobligorswithanover70%debt/assetratio(E) | 673,683 | ||
| Amountbywhichthetotalguaranteeamountexceeds50%oftheCompany’snetassets(F) | 271.558 | ||
| Totalofthethreeamountsabove(D+E+F) | 673,683 | ||
| JointresponsibilitiespossiblyborneintheReportingPeriodforundueguarantees(ifany) | N/A | ||
| Provisionofexternalguaranteesinbreachoftheprescribedprocedures(ifany) | N/A | ||
Compoundguarantees:
None
(2)IrregularitiesintheProvisionofGuarantees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
3.CashEntrustedforWealthManagement
√Applicable□Notapplicable
Unit:RMB’0,000
| Type | Fundingsource | Amount | Undueamount | Unrecoveredoverdueamount |
| Bankfinancialproducts | Self-owned | 0.00 | 1,500.00 | 0.00 |
| Total | 0.00 | 1,500.00 | 0.00 | |
High-riskwealthmanagementtransactionswithasignificantsingleamount,orwithlowsecurity,lowliquidityornoprincipalprotection:
□Applicable√Notapplicable
Situationwheretheprincipalisexpectedlyirrecoverableoranimpairmentmaybeincurred:
□Applicable√Notapplicable
4.OtherSignificantContracts
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XVICorporateSocialResponsibility(CSR)
1.MajorEnvironmentalIssuesIndicatebytickmarkwhethertheCompanyoranyofitssubsidiariesisidentifiedasamajorpolluterbytheenvironmentalprotectionauthorities.Yes
Nameofpolluter
| 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,methylbenzene | Dischargeofstationarypollutionsources | 14 | Threeontheroofofplant1,tenontheroofofplant2andoneontheroofofthe | sulfuricacidfume≤30mg/m3；nitrogenoxide≤200mg/m3；hydrogenchloride≤30mg/m3；TVOC≤90mg/m3；benzene≤12mg/m3；methylbenzen≤40mg/m3；dimethylbenzene≤70mg/m3；tinanditscompounds≤8.5mg/m3； | EmissionStandardforElectroplatingPollutantsGB21900-2008AirEmissionLimitsTable5,GuangdongAirPollutantEmissionStandardDB44/27-2001theSecondLevelStandardintheSecondPeriod,EmissionstandardforOdorPollutants(GB | 2,986,560,000standardcube/year | 2,986,560,000standardcube/year(note:thetotaldischargeisnotstatedinthelatestversionofnationaldischargepermitin2018;twoexhausttowerswereaddedin2018;calculatedbasedonairvolumeinenvironmental | None |
,TVOC,tinanditscompounds,PM(dust),oilfume
| ,TVOC,tinanditscompounds,PM(dust),oilfume | canteen | PM（dust）≤120mg/m3；oilfume≤2mg/m3 | 14554-1993)Table2Standard,Emissionstandardofcookingfume(GB18483-2001) | impactassessment) | |||||
| BoluoKonkaandBoluoKonkaPrecision | Pollutionsourcesofwastewater:PH、copper、COD、ammonianitrogen、totalnitrogen、totalphosphorus | Dischargeofstationarypollutionsources | 1 | Maindischargeoutletofthewastewaterstation | PH：6-9(dimensionless)；copper≤0.5mg/L；COD≤30mg/L；ammonianitrogen≤1.5mg/L；totalnitrogen≤10mg/L；totalphosphorus≤0.3mg/L | ElectroplatingwaterpollutantdischargestandardDB44/1597-2015Table1DischargestandardsforthePearlRiverDelta:BFBH[2019]No.58document:IntermsofCOD,ammonianitrogenandtotalphosphorus,thewaterqualityshouldmeettheGradeIVwaterqualitystandardintheEnvironmentalQualityStandardsforSurfaceWater(GB3838-2002).Dischargeofthetotalphosphorusshouldreach50%ofthedischargeconcentrationlimitrequirementofthecorrespondingindustry. | 276,000tons/year | Totaldischarge276,000tons/year；pollutantCOD19.2tons/year；ammonianitrogen3.6tons/year；totalnitrogen4.8tons/year | None |
| wastegaspollutants:sulfuricacidfume,hydrogenchloride,formaldehyde,hydrogencyanide,nitrogenoxide,ammonia,benzene,methylbenzene,TVOC,tin | Dischargeofstationarypollutionsources | 20 | Sixontheroofofplant1,thirteenontheroofofplant2andoneinsewagestation | sulfuricacidfume≤30mg/m3；nitrogenoxide≤200mg/m3；hydrogenchloride≤30mg/m3；TVOC≤90mg/m3；benzene≤12mg/m3；methylbenzen≤40mg/m3；dimethylbenzene≤70mg/m3；tinanditscompounds≤8.5mg/m3；PM（dust）≤120mg/m3； | EmissionStandardforElectroplatingPollutantsGB21900-2008AirEmissionLimitsTable5,GuangdongAirPollutantEmissionStandardDB44/27-2001theSecondLevelStandardintheSecondPeriod,EmissionstandardforOdorPollutants(GB14554-1993)Table2 | / | Thetotaldischargeisnotstatedinthelatestversionofnationaldischargepermitin2020 | None |
anditscompounds,PM(dust),oilfume
| anditscompounds,PM(dust),oilfume | oilfume≤2mg/m3 | Standard,Emissionstandardofcookingfume(GB18483-2001) |
(1)Theconstructionofanti-pollutionfacilitiesanditsoperationsituation
①XingDaHongYeAllproductionequipmentofGuangdongXingdaHongyeElectronicsCo.,Ltd.hasbeensetupwithsupportingenvironmentalprotectionfacilitiesaccordingtotherequirementsofenvironmentalimpactassessment.Thedischargeofwastewater,wastegasandnoiseaswellasthedisposalofallsolidwastesintheCompanyallmetthestandardsduringtheReportingPeriod.ThesewagetreatmentcentreofGuangdongXingdaHongyeElectronicsCo.,Ltd.withaninvestmentofaboutRMB15millionwasformallyputintoproductioninJune2007,andthetreatmentcapacityofthesewagetreatmentfacilitywas2,566tons/day.Aftertechnicalimprovementandexpansion,thecapacityincreasedto2,900tons/daywiththetreatmentprocessremainingunchanged.Currently,thesewagetreatmentfacilitiesarefunctioningwellandthemainpollutantdischargemeetsthedischargestandardsandenvironmentalassessmentstandards.ThepollutantsaredischargedtoFushachongafterbeingtreatedattheself-builtsewagetreatmentstation.
②BoluoKonkaandBoluoKonkaPrecisionAllproductionequipmentofBoluoKonkaandBoluoKonkaPrecisionhasbeenreportedforenvironmentalassessment,reviewandapproval.Thesupportingenvironmentalprotectionandpollutioncontrolfacilitieshavebeendesignedbypollutanttypeandconcentrationandeffectivelyoperatedinatargetedmanner.DuringtheReportingPeriod,thedischargestandardsweremetintermsofindustrialwastewater,exhaustandfactorynoise,andallindustrialwastegeneratedwasdisposedofincompliancewithenvironmentallawsandregulations.BoluoKonkawasestablishedin2000.TomanufacturesinglesidedPCBs,itinvestedapproximatelyRMB5millioninconstructingasewagetreatmentstationwithoutthebiochemicaltreatmentfunctionandfeaturingadischargecapacityof300tonsperday.In2007,BoluoKonkaexpandeditsfactorybystartingthePhaseIIproject,whichwassubmittedforenvironmentalassessmentasBoluoKonkaPCBDoubleSidedandMulti-LayerPCBProject(latertheprojectownerwaschangedintoBoluoKonkaPrecision).ItspentaboutRMB10milliononconstructingthePhaseIIsewagetreatmentstationtoaddthebiochemicaltreatmentfunctionwithadischargecapacityof800tonsperday.In2019,accordingtotherequirementsinthedocumentsissuedbyBoluoCountyEcologyandEnvironmentBureau,thetwosewagetreatmentstationsofBoluoKonkaandBoluoKonkaPrecisionmustbeupgradedtowardshigherstandards.Throughcomprehensiveassessmentoftheprofessionalenvironmentalprotectioncompany,itwasdecidedthatthesewagetreatmentstationsofthesaidcompaniesbecombinedtomeettheupgradingrequirements.BoluoCountyEcologyand
EnvironmentBureauapprovedthecombinationofthedischargeoutletsoftheaforementionedcompanies,andBoluoKonkawouldappointBoluoKonkaPrecisiontotreatsewage.Afterthecombination,thedischargecapacitywouldreach1,100tonsperday.TheaforementionedcompaniesspentaboutRMB20millionbetween2019and2020onupgradingthesewagetreatmentstationstowardshigherstandards,andaddedindustrialadvancedprocessesandtreatmentsystems,suchasROwatertreatment,FentonoxidationandMBRfilms.Afterthetechnologicalimprovementsandexpansion,thesewagetreatmentreaches2,200tonsperday(withadischargecapacityof1,100tonsperday)withareuserateofmorethan60%.Atpresent,thewastewatertreatmentfacilitiesareoperatingingoodconditions;thedischargeofmajorpollutantsmeetsthedischargestandards.Afteradvancedtreatmentofthewaterreusefacilities,thewatertreatedbythesewagestationsthatmeetsthestandardswillbereusedintheplants,whiletheremainingwaterwillbedischargedtothemunicipalpipenetworktobeprocessedbytheurbanandruralwatertreatmentfactorybeforebeingdischargedtotheDongjiangRiver.
(2)Environmentalimpactassessmentandotherenvironmentalprotectionadministrativelicensesoftheconstructionproject①XingDaHongYeGuangdongXingdaHongyeElectronicsCo.,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.On31December2012,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,whiletheoriginalplatingequipmentandprocessesremained
unchanged,thebrownoxideprocesswasaddedtotheoriginalproductionprocess;alltheincreasedplatingcapacitywouldbeoutsourced.Thetechnicalimprovementandexpansionprojectwascommencedin2013andcompletedinJanuary2018.Thecommissioningwascarriedoutfrom10February2018to8July2018.Theconstructionoftheprojectcompliedwiththerequirementsforenvironmentalimpactassessmentandmetthecriteriafortheacceptanceofenvironmentalprotectionforthecompletionofconstructionprojects.In2018,theCompanyobtainedthestatesewagepermit,certificateNo.:91442000768405216J001P.
②BoluoKonkaandBoluoKonkaPrecision
In2000,BoluoKonkaobtainedtheapprovalfromtheHuizhouMunicipalEcologyandEnvironmentBureau(HSHJ[2000]No.23).Theprojectwascompletedandputintooperationinthesameyear.ThepollutantdischargepermitNo.is91441322721121283N001U.InJanuary2007,BoluoKonkaappointedHuizhouInstituteofEnvironmentalSciencestoconducttheenvironmentalimpactassessementoftheBoluoKonkaExpansionProject.OnFebruary8,2007,BoluoKonkareceivedtheDocumentofApprovalfortheEnvironmentalImpactReportontheProjectofBoluoKonkaDoubleSidedandMulti-LayerBoards(HSHJ[2007]No.J32).AccordingtotheDocument,approvalwasgiventotheadditionofdoublesidedandmulti-layercircuitboardsintheprojectexpansion.Theproductioncapacityforsinglesidedcircuitboardswouldreach1millionsquaremetersperyear,anddoublesidedandmulti-layercircuitboardswouldreach650,000squaremetersperyearaftertheprojectexpansion.Inaddition,electroplatingequipmentandprocesswouldbeaddedintheexpansionproject.Theconstructionoftheprojectmettheenvironmentalassessmentrequirementsandsatisfiedtheconditionsfortheenvironmentalprotectionintheprojectinspectionandacceptance.Thepollutantdischargepermitwasobtainedinthesameyear.TheaforementionedprojectwaslaterrenamedasBoluoKonkaPrecision.In2020,BoluoKonkaPrecisionobtainedthenationalpollutantdischargepermitwiththepermitNo.91441322799316208F001V.
(3)Contingencyplanforemergentenvironmentalincident
①XingDaHongYeInstrictaccordancewithrequirementsoflaws,regulationsandrelevantdocuments,suchasLawofthePeople’sRepublicofChinaonEmergencyResponseandInterimMeasuresonEnvironmentalEmergencyResponsePlan,GuangdongXingdaHongyeElectronicsCo.,Ltd.hasestablishedriskpreventionmeasuresandemergencyresponseplans,keptitsemergencyequipmentinanormalstate,formulatedtheContingencyPlanforEmergentEnvironmentalIncident,andputonrecordsatZhongshanEnvironmentalProtectionBureau,GuangdongProvince,recordNo.:4420002017044M.Inaddition,theCompanyconductsadrillofmajorenvironmentalpollutionincidentonitsfactorytoenhanceitsemergencyresponsecapabilitiesforemergentenvironmentalpollutionincidents.Furthermore,GuangdongXingdaHongyeElectronicsCo.,Ltd.hasbuiltanemergencypool(which
isthecomprehensivewatertankinthesewagetreatmentstationcoveringanareaof800m
)andsetupafirepool(500m
andlocatedonFloor1ofFactoryBuildingNo.2),whichserveastemporarystoragepoolsforexteriordrainageorfiredrainagetoeradicateaccidentaldischargeofwastewaterinthecaseoffailedoperationofthesewagetransmissionpipelineorfireaccidentduetooutageorotherspecialcircumstances.Thesewagetransmissionpipelinehasbeenequippedwithanti-corrosionandcathodicprotectionusinganti-corrosionpipesandcarbonsteelpipes.Pursuanttothenewdischargestandards,therelateddischargepipelinehasbeenmodifiedandtheproductiondepartmenthasbeenrequiredtodischargestrictlyinaccordancewithdischargestandardstocutthecostsofwastewatertreatment.Differenttypesofwastewaterarenormallyandproperlytreatedthroughfineshunting.Personnelhavebeenspeciallyarrangedtomanagethechemicalliquidwarehouseandexertreasonablecontrolandrequirementsovertheliquiddischargebytheplantandtimelytransportationoftheliquidbysuppliers;emergencytoolssuchasprotectivemasks,bootsandimmisciblepumpshavebeenequipped.
②BoluoKonkaandBoluoKonkaPrecisionBoluoKonkaandBoluoKonkaPrecisionstrictlyabidesbyEmergencyResponseLawofthePeople'sRepublicofChina,InterimMeasuresfortheManagementofEmergencyPlansforUnexpectedEnvironmentalIncidents,otherrelatedlawsandregulationsaswellastherequirementsofrelevantdocuments.Theyhaveestablishedriskpreventionmeasuresandemergencyplans,suchasEmergencyPlanforUnexpectedEnvironmentalIncidents,andhavetheiremergencyequipmentruninanormalstatus.Inaddition,theyhavefiledwithBoluoCountyEcologyandEnvironmentBureauinHuizhou,Guangdong,withthefileNo.BHYJB2018-22.Theyorganizeallstafftoconductdrillsformajorenvironmentalpollutionincidentseveryyeartoimprovetheirabilityfortheemergencyresponsetounexpectedenvironmentalpollutionincidents.BoluoKonkaandBoluoKonkaPrecisionarewellequippedwithallnecessaryfacilitiesforemergencyresponsetounexpectedincidents,includinganemergencyresponsepoolofindustrialwastewater(500m
,underthegroundofthesewagetreatmentstation)andafirefightingreservoir(locatedbesidethestaffdormitorybuilding).Intheeventofanunexpectedenvironmentalincident,suchasleakageorfailureofawastewatertransportingpipe,theemergencyresponsepoolwillpreventanyaccidentofindustrialwastewater;intheeventofafiresafetyaccident,thefirefightingreservoirwillbeputintouse.Alldepartmentsarerequiredtodischargepollutantsstrictlyinaccordancewithpollutantdischargestandardstoreducethecostsofwastewatertreatmentbyproperlyandreasonablydividingsolutionandwastewaterdischargedfromtheplants.Thechemicalwarehousesaremanagedbydesignatedpersonnel,withstandardcontrolandrequirementsovertheloadingandunloadingofchemicalproductsbysuppliers.Intermsofemergencyresponsesupplies,afullsetofemergencyrescuetoolsareprepared,includinggasmasks,acidandalkalineresistantboots,gloves,goggles,safetyropes,helmets,firesandandsubmersiblepumps.
(4)Environmentalself-monitoringplan
①XingDaHongYeAccordingtotherequirementsoftheEnvironmentalProtectionAdministration,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,theoperationmonitoringdatafortheholidayperiodwillbedisclosedonthefirstworkingdayaftertheholiday.Itemsmonitoredonamonthlybasiswillbedisclosedbythe25
th
dayofthemonth.Itemsinspectedonaquarterlybasiswillbedisclosedbythe
thdayofthelastmonthofthequarter.Theannualself-monitoringreportforthepreviousyearwillbedisclosedattheendofJanuaryeachyear.Inthecaseofshutdownwithdaysoff,thenumberofdaysoffwillbeindicatedintheinformationbarandrelatedproofswillbesubmittedtothemonitoringcenterofthemunicipalenvironmentalbureauforrecord.TheresultsaredisclosedonGuangdongProvinceKeyPollutionSourceRegulatoryInformationPlatformandonNationalPollutionSourceMonitoringInformationManagementandSharingPlatformforpublicmonitoring.
②BoluoKonkaandBoluoKonkaPrecisionInlinewiththerequirementsofenvironmentaldepartments,BoluoKonkaandBoluoKonkaPrecisionattachgreatimportancetoenvironmentalmonitoringandmanagement.BasedontheMeasuresfortheSelf-MonitoringandInformationPublicityofEnterprisesunderNationalKeyMonitoring,EnvironmentalImpactReportandtheopinionsstatedinreplytotheenvironmentalassessment,theyhaveestablishedtheEnvironmentalSelf-MonitoringPlanofEnterprisesandfiledarecordwiththemunicipalecologyandenvironmentbureau.Accordingtotheplan,theyhaveinstalledanonlinemonitoringsystemtomonitorthePHvalue,totalflow,COD,ammonianitrogenandtotalphosphorusofthewastewater,andnetworkedwiththeecologyandenvironmentbureau.
Theyappointaqualifiedthird-partyonlinemonitoringequipmentoperationandmaintenanceorganizationtoperformregularmaintenanceoftheautomaticmonitoringequipmentandthemonitoringdatanetworkingequipment,andaqualifiedthird-partymonitoringorganizationtoperformthemonitoringofthe“threewastes”.Allself-monitoringresultswillbereportedandpublishedonpublicplatformsandsubjecttopublicmonitoring.
(5)Otherenvironmentalinformationthatshouldbedisclosed
①XingDaHongYeTheenvironmentalprotectioninvestmentofGuangdongXingdaHongyeElectronicsCo.,Ltd.forH12020wasapproximatelyRMB7.6362million,mainlyusedastheenvironmentalengineeringinvestment(approximatelyRMB1.8743million)andtheoperationofenvironmentalprotectionequipment(approximatelyRMB5.7616million).
②BoluoKonkaandBoluoKonkaPrecision
BoluoKonkaandBoluoKonkaPrecisionspentaboutRMB20milliononenvironmentalprotectionin2019,includingRMB10millionforupgradingpollutioncontrolfacilities,RMB5millionforthereclaimedwatersystem,andRMB5millionforwastegastreatmentfacilitiesandvariousenvironmentalprotectionoperationcosts.
(6)OtherEnvironmentalInformationAccordingtotheexaminationbytheCompany,theCompanyanditsotherholdingsubsidiariesarenotkeypollutantunits.Allhavefaithfullyimplementedthelawsandregulationsrelatedtoenvironmentalprotection,suchasEnvironmentalProtectionLawofthePeople'sRepublicofChina,WaterPollutionPreventionandControlLawofthePeople'sRepublicofChina,LawofthePeople'sRepublicofChinaonthePreventionandControlofAtmosphericPollution,LawofthePeople'sRepublicofChinaonPreventionandControlofPollutionFromEnvironmentalNoise,LawofthePeople'sRepublicofChinaonthePreventionandControlofEnvironmentalPollutionbySolidWasteinthedailyproductionandoperation,withoutbeingpunishedforviolationsoflawsandregulationsduringtheReportingPeriod.
2.MeasuresTakenforTargetedPovertyAlleviation
(1)PlansInaccordancewiththeguidingprinciplesofthestateonthedevelopmentofprecisionpovertyalleviation,theCompanyhasproactivelycarriedoutcriticalworkonpovertyalleviationandengagedinthetargetedsupportinSansuiCountyandTianzhuCountyinGuizhouProvince.
(2)SummaryoftheRelatedWorkDoneintheReportingPeriodTheCompanypurchasedagriculturalproductsofRMB106,500fromTianzhuCountyandSansuiCountyinGuizhouProvinceinH12020.
(3)ResultsofTargetedPovertyAlleviation
Index
| Index | Unitofmeasurement | Amount/implementation |
I.Overallsituation
| I.Overallsituation | —— | —— |
| Ofwhich:1.1Funds | RMB’0,000 | 10.65 |
| II.Itemizedinvestment | —— | —— |
| 9.Otherplans | —— | —— |
| 9.2Investmentamount | RMB’0,000 | 10.65 |
(4)SubsequentPlansTofullyperformitsdutiesoftargetedpovertyalleviation,insecondhalfof2020,theCompanyplanstocontinuouslyconductthetargetedpovertyalleviationaffairsforTianzhuandSansuitwocountiesofGuizhouProvince.XVIIOtherSignificantEvents
√Applicable□Notapplicable(I)Privateplacementofcorporatebonds:currently,theprivateplacementofcorporatebondsofRMB2.3billionandRMB0.6billionareinmovingforward.(II)PrivateplacementofA-shares:CSRChasterminateditsreviewontheCompany’sprivateplacementofA-sharesattherequestoftheCompany.(III)Launchandestablishmentofthefund:Currently,OrientKonkaIndustryM&AFundrespectivelyholds7.75%,2.75%3.32%and11.73%equityinterestinJiangxiYahuaElectronicMaterialsCo.,Ltd.,GenewTechnologiesCo.,Ltd.,RoshowScienceandTechnologyCo.,Ltd.andShenzhenGrentechRFCommunicationCo.,Ltd.EmergingIndustrialDevelopmentInvestmentFundhascompletedthefilinginAssetManagementAssociationofChina.WuzhenJiayuDigitalEconomyIndustryFundandYibinKanghuiEmergingIndustryFundhaveaccomplishedthesigningofthepartnershipagreementandnowthefilinginAssetManagementAssociationofChinaisunderway.(IV)Disclosureindexofsignificantinformation
| AnnouncementNo. | Date | Title | Pageonnewspaper | Linkonhttp://www.cninfo.com.cn |
| 2020-01 | 14January2020 | AnnouncementonResignationofVicePresidentoftheCompany | SecuritiesTimesB29,ShanghaiSecuritiesNews40etc. | http://www.cninfo.com.cn/new/index |
| 2020-02 | 17January2020 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB24,ShanghaiSecuritiesNews68etc. | |
| 2020-03 | 21January2020 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB64,ShanghaiSecuritiesNews89etc. | |
| 2020-04 | 21January2020 | AnnouncementonSigningStrategicFrameworkAgreement | SecuritiesTimesB64,ShanghaiSecuritiesNews89etc. | |
| 2020-05 | 5February | AnnouncementonAbnormalVolatilityof | SecuritiesTimesB33,ShanghaiSecuritiesNews |
2020
| 2020 | StockTrading | 60etc. | |
| 2020-06 | 7February2020 | AnnouncementonAbnormalVolatilityofStockTrading | SecuritiesTimesB46,ShanghaiSecuritiesNews68etc. |
| 2020-07 | 10February2020 | AnnouncementonAbnormalVolatilityofStockTrading | SecuritiesTimesB11,ShanghaiSecuritiesNews44etc. |
| 2020-08 | 13February2020 | AnnouncementonAbnormalVolatilityofStockTrading | SecuritiesTimesB31,ShanghaiSecuritiesNews52etc. |
| 2020-09 | 21February2020 | AnnouncementonAbnormalVolatilityofStockTrading | SecuritiesTimesB29,ShanghaiSecuritiesNews57etc. |
| 2020-10 | 25February2020 | AnnouncementonReplyfortheConcernLetterofShenzhenStockExchange | SecuritiesTimesB19,ShanghaiSecuritiesNews5etc. |
| 2020-11 | 27February2020 | AnnouncementonProgressofReplyfortheConcernLetterofShenzhenStockExchange | SecuritiesTimesB79,ShanghaiSecuritiesNews76etc. |
| 2020-12 | 3March2020 | AnnouncementontheResolutionofthe23rdMeetingofthe9thBoardofDirectors | SecuritiesTimesB44,ShanghaiSecuritiesNews65etc. |
| 2020-13 | 3March2020 | AnnouncementonLaunchandEstablishmentofEmergyingIndustryDevelopmentInvestmentFund | SecuritiesTimesB44,ShanghaiSecuritiesNews65etc. |
| 2020-14 | 3March2020 | AnnouncementonReceivingtheReplyonEnquiryofAnyPlannedEventswithSignificantEffectsontheCompanybyControllingShareholders | SecuritiesTimesB44,ShanghaiSecuritiesNews65etc. |
| 2020-15 | 4March2020 | SupplementaryAnnouncementonLaunchandEstablishmentofEmergyingIndustryDevelopmentInvestmentFund | SecuritiesTimesB6,ShanghaiSecuritiesNews36etc. |
| 2020-16 | 18March2020 | AnnouncementonOfferingOverseasLoanunderDomesticGuaranteetoForeignWholly-ownedSubsidiary | SecuritiesTimesB25,ShanghaiSecuritiesNews44etc. |
| 2020-17 | 24March2020 | AnnouncementonOfferingGuaranteesbytheMajority-ownedSubsidiarytoitsMajority-ownedSubsidiary | SecuritiesTimesB24,ShanghaiSecuritiesNews60etc. |
| 2020-18 | 28March2020 | AnnouncementontheResolutionofthe24thMeetingofthe9thBoardofDirectors | SecuritiesTimesB33,ShanghaiSecuritiesNews28etc. |
| 2020-19 | 28March2020 | ProposalonInitiatingtheEstablishmentofWuzhenJiayuDigitalEconomyIndustryFundandRelated-partyTransaction | SecuritiesTimesB33,ShanghaiSecuritiesNews28etc. |
| 2020-20 | 11April2020 | AnnouncementontheProgressofOfferingGuaranteestotheWholly-ownedSubsidiary | SecuritiesTimesB40,ShanghaiSecuritiesNews24etc. |
2020-21
| 2020-21 | 14April2020 | AnnouncementonExpirationofFinancialAidsofRMB8.9milliontoChongqingQingjia | SecuritiesTimesB18,ShanghaiSecuritiesNews81etc. |
| 2020-22 | 15April2020 | Announcementonthe2019EarningsForecasts | SecuritiesTimesB214,ShanghaiSecuritiesNews249etc. |
| 2020-23 | 15April2020 | Announcementonthe2020FirstQuarterEarningsForecasts | SecuritiesTimesB214,ShanghaiSecuritiesNews249etc. |
| 2020-24 | 22April2020 | AnnouncementontheResolutionofthe6thMeetingofthe9thSupervisoryCommittee | SecuritiesTimesB226,ShanghaiSecuritiesNewsetc. |
| 2020-25 | 22April2020 | AnnouncementontheExpectationofthe2020RoutineRelatedTransaction | SecuritiesTimesB226,ShanghaiSecuritiesNewsetc. |
| 2020-26 | 22April2020 | AnnouncementonRevisingCorporateSystemssuchasArticlesofAssociations,etc. | SecuritiesTimesB225,ShanghaiSecuritiesNewsetc. |
| 2020-27 | 22April2020 | AnnouncementonAppointmentoftheAuditorforFinancialStatementsandInternalControlin2020 | SecuritiesTimesB226,ShanghaiSecuritiesNewsetc. |
| 2020-28 | 22April2020 | AnnouncementontheChangesofPartofAccountingPolicies | SecuritiesTimesB226,ShanghaiSecuritiesNewsetc. |
| 2020-29 | 22April2020 | AnnouncementonPlanofProfitDistributionfor2019 | SecuritiesTimesB226,ShanghaiSecuritiesNewsetc. |
| 2020-30 | 22April2020 | 2019AnnualReport | |
| 2020-31 | 22April2020 | Abstractofthe2019AnnualReport | SecuritiesTimesB225,ShanghaiSecuritiesNewsetc. |
| 2020-32 | 22April2020 | AnnouncementonAssetsImpairmentProvisionin2019 | SecuritiesTimesB226,ShanghaiSecuritiesNewsetc. |
| 2020-33 | 22April2020 | AnnouncementontheResolutionofthe25thMeetingofthe9thBoardofDirectors | SecuritiesTimesB226,ShanghaiSecuritiesNewsetc. |
| 2020-34 | 22April2020 | NoticeonConveningthe2019AnnualGeneralMeeting | SecuritiesTimesB226,ShanghaiSecuritiesNewsetc. |
| 2020-35 | 30April2020 | Textofthe2020FirstQuarterReport | SecuritiesTimes,ShanghaiSecuritiesNews609etc. |
| 2020-36 | 30April2020 | 2020FirstQuarterReport | |
| 2020-37 | 13May2020 | AnnouncementonOfferingGuaranteesbytheMajority-ownedSubsidiarytoitsMajority-ownedSubsidiary | SecuritiesTimesB56,ShanghaiSecuritiesNews108etc. |
| 2020-38 | 15May2020 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB24,ShanghaiSecuritiesNews64etc. |
2020-39
| 2020-39 | 15May2020 | IndicativeAnnouncementonDo’sandDon’tsforParticipatingintheAnnualGeneralMeetingof2019duringthePeriodoftheEpidemicPreservationandControl | SecuritiesTimesB24,ShanghaiSecuritiesNews64etc. |
| 2020-40 | 19May2020 | AnnouncementonResolutionsofthe2019AnnualGeneralMeeting | SecuritiesTimesB87,ShanghaiSecuritiesNews25etc. |
| 2020-41 | 23May2020 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB58,ShanghaiSecuritiesNews49etc. |
| 2020-42 | 23May2020 | AnnouncementontheResolutionofthe27thMeetingofthe9thBoardofDirectors | SecuritiesTimesB58,ShanghaiSecuritiesNews49etc. |
| 2020-43 | 23May2020 | AnnouncementonTerminatingPrivatePlacementofA-Shares | SecuritiesTimesB58,ShanghaiSecuritiesNews49etc. |
| 2020-44 | 23May2020 | AnnouncementontheCompanySigningwiththeSubscriptionObjecta‘TerminationContractfortheShareSubscriptionAgreementwithConditionalEntryintoForce’andRelated-partyTransaction | SecuritiesTimesB58,ShanghaiSecuritiesNews49etc. |
| 2020-45 | 23May2020 | AnnouncementontheResolutionofthe8thMeetingofthe9thSupervisoryCommittee | SecuritiesTimesB58,ShanghaiSecuritiesNews49etc. |
| 2020-46 | 5June2020 | AnnouncementonSigningProjectCooperativeAgreementwithMunicipalGovernmentofXinxiang | SecuritiesTimesB45,ShanghaiSecuritiesNews100etc. |
| 2020-47 | 6June2020 | AnnouncementonPlanofPrivatePlacementofCorporateBonds | SecuritiesTimesB74,ShanghaiSecuritiesNews65etc. |
| 2020-48 | 6June2020 | AnnouncementonProvidingAdvertisingServicestoOCTGroupandRelated-partyTransaction | SecuritiesTimesB74,ShanghaiSecuritiesNews65etc. |
| 2020-49 | 6June2020 | AnnouncementontheTransferof34%EquityofNanjingK-StarScienceandTechnologyIndustryParkOperationandManagementCo.,Ltd.andRelated-partyTransaction | SecuritiesTimesB75,ShanghaiSecuritiesNews65etc. |
| 2020-50 | 6June2020 | NoticeonConveningthe1stExtraordinaryGeneralMeetingof2020 | SecuritiesTimesB74,ShanghaiSecuritiesNews65etc. |
| 2020-51 | 6June2020 | AnnouncementonConstructingtheManufacturingBaseofKonkaSmartTerminalforExportbyInvestments | SecuritiesTimesB74,ShanghaiSecuritiesNews65etc. |
| 2020-52 | 6June2020 | AnnouncementonOfferingGuaranteeLimittotheJointStockCompaniesandRelated-partyTransactions | SecuritiesTimesB74,ShanghaiSecuritiesNews65etc. |
2020-53
| 2020-53 | 6June2020 | AnnouncementonExternalGuarantees | SecuritiesTimesB74,ShanghaiSecuritiesNews65etc. |
| 2020-54 | 6June2020 | AnnouncementontheResolutionofthe28thMeetingofthe9thBoardofDirectors | SecuritiesTimesB74,ShanghaiSecuritiesNews65etc. |
| 2020-55 | 12June2020 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesA41,ShanghaiSecuritiesNews60etc. |
| 2020-56 | 16June2020 | AnnouncementonReceivingtheNoticeonTerminatingtheReviewoftheApplicationforAdministrationPermissionofChinaSecuritiesRegulatoryCommission | SecuritiesTimesB84,ShanghaiSecuritiesNews108etc. |
| 2020-57 | 17June2020 | AnnouncementontheProgressofOfferingGuaranteestotheMajority-ownedSubsidiary | SecuritiesTimesB28,ShanghaiSecuritiesNews89etc. |
| 2020-58 | 23June2020 | AnnouncementonResolutionsofthe1stExtraordinaryGeneralMeetingof2020 | SecuritiesTimesB2,ShanghaiSecuritiesNews100etc. |
| 2020-59 | 24June2020 | AnnouncementontheResolutionofthe29thMeetingofthe9thBoardofDirectors | SecuritiesTimesB106,ShanghaiSecuritiesNews124etc. |
| 2020-60 | 24June2020 | AnnouncementonExtendingtheInvestmentTermofOrientKonkaIndustrialM&AFund | SecuritiesTimesB106,ShanghaiSecuritiesNews124etc. |
| 2020-61 | 24June2020 | AnnouncementontheTransferofSomePatentsinRelationtoCloudBigDataandRelated-partyTransaction | SecuritiesTimesB106,ShanghaiSecuritiesNews124etc. |
| 2020-62 | 30June2020 | AnnouncementonCompletingChangesofRegistrationfortheTransferof34%EquityofNanjingK-StarScienceandTechnologyIndustryParkOperationandManagementCo.,Ltd. | SecuritiesTimesB11,ShanghaiSecuritiesNews224etc. |
XVIIISignificantEventsofSubsidiaries
□Applicable√Notapplicable
PartVIShareChangesandShareholderInformation
IShareChanges
1.ShareChanges
Unit:share
Before
| 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% | |||||
Reasonsforthesharechanges:
□Applicable√NotapplicableApprovalofthesharechanges:
□Applicable√NotapplicableTransferofshareownership:
□Applicable√NotapplicableProgressonanysharerepurchase:
□Applicable√NotapplicableProgressonreducingtherepurchasedsharesbymeansofcentralizedbidding:
□Applicable√NotapplicableEffectsofthesharechangesonthebasicanddilutedearningspershare,equitypershareattributabletotheCompany’sordinaryshareholdersandotherfinancialindicatorsoftheprioryearandtheprioraccountingperiod,respectively:
□Applicable√NotapplicableOtherinformationthattheCompanyconsidersnecessaryorisrequiredbythesecuritiesregulatortobedisclosed:
□Applicable√Notapplicable
2.ChangesinRestrictedShares
□Applicable√NotapplicableIIIssuanceandListingofSecurities
□Applicable√NotapplicableIIIShareholdersandTheirHoldingsasatthePeriod-End
Unit:share
Numberofordinaryshareholders
| Numberofordinaryshareholders | 145,344 | Numberofpreferredshareholderswithresumedvotingrights(ifany)(seenote8) | 0 | |||||||
| 5%orgreaterordinaryshareholdersortop10ordinaryshareholders | ||||||||||
| Nameofshareholder | Natureofshareholder | Shareholdingpercentage | Totalordinarysharesheldattheperiod-end | Increase/decreaseintheReportingPeriod | Restrictedordinarysharesheld | Unrestrictedordinarysharesheld | 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 | ||||
| GUOYUANSECURITIESBROKER | Foreignlegalperson | 2.47% | 59,497,225 | 5,293,446 | 0 | 59,497,225 | ||||
(HK)CO.,LTD.
| (HK)CO.,LTD. | ||||||||||
| HOLYTIMEGROUPLIMITED | Foreignlegalperson | 2.33% | 56,139,100 | 0 | 0 | 56,139,100 | ||||
| GAOLINGFUND,L.P. | Foreignlegalperson | 2.19% | 52,801,250 | 0 | 0 | 52,801,250 | ||||
| WANGJINGFENG | Domesticnaturalperson | 1.01% | 24,250,000 | 16,550,000 | 0 | 24,250,000 | ||||
| NAMNGAI | Foreignnaturalperson | 0.92% | 22,063,940 | 856,600 | 0 | 22,063,940 | ||||
| CHINAMERCHANTSSECURITIES(HK)LIMITED | State-ownedlegalperson | 0.83% | 19,973,520 | -3,020,504 | 0 | 19,973,520 | ||||
| HaitongInternationalSecuritiesCompanyLimited-AccountClient | Foreignlegalperson | 0.52% | 12,452,154 | -1,370,000 | 0 | 12,452,154 | ||||
| SPDRPortfolioEmergingMarketsETF | Foreignlegalperson | 0.46% | 11,176,363 | 1,022,500 | 0 | 11,176,363 | ||||
| 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. | |||||||||
| Top10unrestrictedordinaryshareholders | ||||||||||
| Nameofshareholder | Unrestrictedordinarysharesheldattheperiod-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 | |||||||
| GUOYUANSECURITIESBROKER(HK)CO.,LTD. | 59,497,225 | Domesticallylistedforeign | 59,497,225 | |||||||
stock
| stock | |||
| HOLYTIMEGROUPLIMITED | 56,139,100 | Domesticallylistedforeignstock | 56,139,100 |
| GAOLINGFUND,L.P. | 52,801,250 | Domesticallylistedforeignstock | 52,801,250 |
| WANGJINGFENG | 24,250,000 | RMB-denominatedordinarystock | 24,250,000 |
| NAMNGAI | 22,063,940 | Domesticallylistedforeignstock | 22,063,940 |
| CHINAMERCHANTSSECURITIES(HK)LIMITED | 19,973,520 | Domesticallylistedforeignstock | 19,973,520 |
| HaitongInternationalSecuritiesCompanyLimited-AccountClient | 12,452,154 | Domesticallylistedforeignstock | 12,452,154 |
| SPDRPortfolioEmergingMarketsETF | 11,176,363 | Domesticallylistedforeignstock | 11,176,363 |
| Relatedoracting-in-concertpartiesamongtop10unrestrictedordinaryshareholders,aswellasbetweentop10unrestrictedordinaryshareholdersandtop10shareholders | 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) | WangJingfengholds23,000,000A-sharesintheCompanythroughhissecuritiesaccountforcustomercredittradingguaranteeinGuotaiJunanSecuritiesCo.,Ltd. | ||
Indicatebytickmarkwhetheranyofthetop10ordinaryshareholdersorthetop10unrestrictedordinaryshareholdersoftheCompanyconductedanypromissoryrepoduringtheReportingPeriod.
□Yes√NoNosuchcasesintheReportingPeriod.IVChangeoftheControllingShareholderortheDeFactoControllerChangeofthecontrollingshareholderintheReportingPeriod
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
ChangeofthedefactocontrollerintheReportingPeriod
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
PartVIIPreferredShares
□Applicable√NotapplicableNoPreferredsharesintheReportingPeriod.
PartVIIIConvertibleCorporateBonds
□Applicable√NotapplicableNoconvertiblecorporatebondsintheReportingPeriod.
PartIXDirectors,SupervisorsandSeniorManagementIChangeinShareholdingsofDirectors,SupervisorsandSeniorManagement
□Applicable√NotapplicableNochangesoccurredtotheshareholdingsofthedirectors,supervisorsandseniormanagementintheReportingPeriod.Seethe2019AnnualReportformoredetails.IIChangeofDirectors,SupervisorsandSeniorManagement
√Applicable□Notapplicable
Name
| Name | Officetitle | Typeofchange | Dateofchange | Reasonforchange |
| HeJianjun | Vicepresident | Left | 13January2020 | Resignationforjobchanges |
| HeHaibin | Director | Left | 10August2020 | Resignationforjobchanges |
PartXCorporateBondsDoestheCompanyhaveanycorporatebondspubliclyofferedonthestockexchange,whichwereoutstandingbeforethedateofthisReport’sapprovalorwereduebutcouldnotberedeemedinfull?WithreferencetothedisclosureI.BasicInformationoftheCorporateBonds
Name
| Name | Abbr. | Code | Releasedate | Maturitydate | Bondsbalance(RMB’0,000) | Interestrate | 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% | Interestsshallbepaideveryyearandtheprincipalsshallbe |
repaidwhenexpired.
| repaidwhenexpired. | |||||||
| 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,asfor“19Konka01”,”19Konka02”,“19Konka03”,“19Konka04”,interesthasbeenpaidonschedule;asfor“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
| 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.RatingSituationoftheCorporateBondsInformationInJune2020,UnitedCreditRatingsCo.,Ltd.madethetrackingratingfortheentityandrelevantbonds(including“19Konka01”,“19Konka02”,“19Konka03”,“19Konka04”,“19Konka05”and“19Konka06”)oftheCompany.TheentityoftheCompanywasratedasGradeAAinvariablyandas“Stable”foritsratingprospect;thebonds“19Konka01”,“19Konka02”,“19Konka03”,“19Konka04”,“19Konka05”and“19Konka06”issuedbyKonkaGroupCo.,Ltd.wereratedasGradeAAAinvariablyfortheircreditandas“Stable”fortheirratingprospect.Thetrackingratingresultisconsistentwiththatissuedatthetimeofcorporatebondsissuance.TherelatedratingreporthasbeenpublishedonthewebsiteofShenzhenStockExchangeinJune2020.V.Credit-addingMechanism,RepaymentPlanandOtherRepaymentGuaranteeMeasuresoftheCorporateBondsOCTGroupprovidedtheunconditionalandirrevocablejointliabilityguaranteeinfullamountforthebonds“19Konka01”,”19Konka02”,“19Konka03”,“19Konka04”,“19Konka05”and“19Konka06”intheReportingPeriod.VI.ConveneSituationoftheBondsHoldersMeetingduringtheReportingPeriodNobondsholdersmeetingwasconvenedduringtheReportingPeriod.
VII.ListoftheDutyExecutionoftheBondsTrusteeduringtheReportingPeriodDuringtheReportingPeriod,IndustrialSecuritiesCo.,Ltd.,theCompany’sbondtrusteemanager,proactivelyperformeditstrusteeship,continuedtobeconcernedwiththeCompany’sroutineproductionandoperationandfinancialconditions,andendeavoredtomaintainthelegitimaterightsandinterestsofthebondholderstrictlyinaccordancewithrelatedlaws,regulations,theManagementMeasuresfortheIssueandTradingofCorporateBonds,theProspectusandtheAgreementfortheBondTrusteeshipManagement.VIII.TheMajorAccountingDataandtheFinancialIndicatorsoftheCompanyupthePeriod-endoftheYearandthePeriod-endofLastYear(ortheReportingPeriodandtheSamePeriodofLastYear)
Unit:RMB’0,000
Item
| Item | 30June2020 | 30June2019 | Increase/decrease |
| Currentratio | 116.65% | 114.80% | 1.85% |
| Asset-liabilityratio | 77.16% | 76.69% | 0.47% |
| Quickratio | 91.35% | 90.78% | 0.57% |
| H12020 | H12019 | Increase/decrease | |
| TimesinterestearnedofEBITDA | 1.73 | 2.75 | -37.09% |
| Loanrepaymentrate | 100.00% | 100.00% | 0.00% |
| Interestcoverage | 100.00% | 100.00% | 0.00% |
MainreasonoftheaboveaccountingdataandthefinancialindicatorswiththeYoYchangeexceeded30%
√Applicable□NotapplicableTheEBITDA-to-interestcoveragedecreasedprimarilyduetoayear-on-yeardeclineintotalprofitintheReportingPeriod.IX.OverdueDebtsoftheCompany
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.X.ListoftheInterestPaymentofOtherBondsandDebtFinancingInstrumentsduringtheReportingPeriodNosuchcasesintheReportingPeriod.XI.ListoftheAcquiredBankCreditLines,UsageandtheRepaymentoftheBankLoansAsoftheendoftheReportingPeriod,theCompanyacquiredbankcreditlinesofRMB15.79billion,andusedRMB11.691billion.Allbankloanscanberepaidonschedulewithoutanyoverduesituations.
XII.ListoftheExecutionoftheAgreementsortheCommitmentsRelatedtotheCompanyBondsRaisingSpecificationduringtheReportingPeriodDuringtheReportingPeriod,theCompanystrictlyobservedtheagreementsandperformedthecommitmentsrelatedtotheCorporateBondsraisingspecification.XIII.SignificantEventsOccurringduringtheReportingPeriodDuringtheReportingPeriod,theCompanyhastimelydisclosedcurrentannouncementsregardingsignificanteventsoccurringthewebsiteofShenzhenStockExchange(http://www.szse.cn/)andcninfo(http://www.cninfo.com.cn/new/index).AsofthedisclosuredateofthisReport,relatedsignificanteventshavenosubsequentprogressyet.XIV.WhetherthereWasGuarantoroftheCorporateBonds
√Yes□NoWhethertheguarantorofthecorporatebondswaslegalpersonorotherorganizations
√Yes□NoWhetherseparatelydisclosethefinancialstatements(includingBalanceSheet,IncomeStatement,CashFlowStatement,andChangesinowners’(shareholders’)Equity)ofguarantorintheReportingPeriodwithintwomonthsfromtheendingdateofthefirsthalfofeveryaccountingyear
□Yes√NoTheCompanyshallseparatelyprovidefinancialstatements(indicatewhetheraudited)oftheguarantorwithintwomonthsfromtheendingdateofthefirsthalfofeveryaccountingyear.
PartXIFinancialStatementsIIndependentAuditor’sReportAretheseinterimfinancialstatementsauditedbyanindependentauditor?
□Yes√NoTheinterimfinancialstatementsoftheCompanyhavenotbeenauditedbyanindependentauditor.IIFinancialStatementsCurrencyunitforthefinancialstatementsandthenotesthereto:RMB
1.ConsolidatedBalanceSheetPreparedbyKonkaGroupCo.,Ltd.
30June2020
Unit:RMB
Item
| Item | 30June2020 | 31December2019 |
| Currentassets: | ||
| Monetaryassets | 6,417,472,335.73 | 6,599,360,051.61 |
| Settlementreserve | ||
| Interbankloansgranted | ||
| Held-for-tradingfinancialassets | 61,494,666.97 | |
| Derivativefinancialassets | ||
| Notesreceivable | 1,790,831,882.98 | 2,838,041,432.89 |
| Accountsreceivable | 5,723,176,839.47 | 4,416,179,657.87 |
| Accountsreceivablefinancing | 78,865,016.45 | 143,174,271.82 |
| Prepayments | 2,055,015,964.35 | 2,072,550,811.86 |
| Premiumsreceivable | ||
| Reinsurancereceivables | ||
| Receivablereinsurancecontractreserve | ||
| Otherreceivables | 2,096,587,670.34 | 1,772,183,366.49 |
| Including:Interestreceivable | 20,197,445.29 | 7,807,400.40 |
| Dividendsreceivable | 547,848.62 | 547,848.62 |
| Financialassetspurchasedunderresaleagreements | ||
| Inventories | 5,532,819,450.49 | 5,318,503,044.69 |
| Contractassets | 30,698,835.93 | |
| Assetsheldforsale |
Currentportionofnon-currentassets
| Currentportionofnon-currentassets | 105,802,707.58 | 108,087,016.22 |
| Othercurrentassets | 1,685,482,577.97 | 2,093,212,552.25 |
| Totalcurrentassets | 25,516,753,281.29 | 25,422,786,872.67 |
| Non-currentassets: | ||
| Loansandadvancestocustomers | ||
| Investmentsindebtobligations | ||
| Investmentsinotherdebtobligations | ||
| Long-termreceivables | 406,414,838.42 | 410,509,555.85 |
| Long-termequityinvestments | 3,515,965,754.73 | 3,465,541,196.89 |
| Investmentsinotherequityinstruments | 21,642,171.36 | 21,642,170.36 |
| Othernon-currentfinancialassets | 1,725,572,108.78 | 1,753,121,727.83 |
| Investmentproperty | 393,652,901.29 | 400,197,374.07 |
| Fixedassets | 2,604,608,094.07 | 2,561,254,191.55 |
| Constructioninprogress | 4,892,296,487.39 | 4,291,544,368.52 |
| Productivelivingassets | ||
| Oilandgasassets | ||
| Right-of-useassets | ||
| Intangibleassets | 1,175,090,192.24 | 1,213,271,713.22 |
| Developmentcosts | ||
| Goodwill | 779,260,296.41 | 779,260,296.41 |
| Long-termprepaidexpense | 122,914,607.94 | 107,590,078.88 |
| Deferredincometaxassets | 977,043,685.78 | 987,763,182.17 |
| Othernon-currentassets | 1,377,590,246.50 | 1,172,472,723.85 |
| Totalnon-currentassets | 17,992,051,384.91 | 17,164,168,579.60 |
| Totalassets | 43,508,804,666.20 | 42,586,955,452.27 |
| Currentliabilities: | ||
| Short-termborrowings | 11,476,582,374.41 | 10,332,687,239.63 |
| Borrowingsfromthecentralbank | ||
| Interbankloansobtained | ||
| Held-for-tradingfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | 962,487,388.11 | 1,319,396,374.37 |
| Accountspayable | 5,422,094,873.24 | 5,797,822,479.60 |
| Advancesfromcustomers | 1,076,856,387.08 |
Contractliabilities
| Contractliabilities | 848,237,128.69 | |
| Financialassetssoldunderrepurchaseagreements | ||
| Customerdepositsandinterbankdeposits | ||
| Payablesforactingtradingofsecurities | ||
| Payablesforunderwritingofsecurities | ||
| Employeebenefitspayable | 286,100,155.12 | 426,870,498.58 |
| Taxespayable | 211,598,176.66 | 607,845,294.99 |
| Otherpayables | 2,511,115,136.03 | 2,374,287,243.20 |
| Including:Interestpayable | 217,842,648.33 | 227,831,108.53 |
| Dividendspayable | 120,397,270.40 | |
| Handlingchargesandcommissionspayable | ||
| Reinsurancepayables | ||
| Liabilitiesdirectlyassociatedwithassetsheldforsale | ||
| Currentportionofnon-currentliabilities | 156,936,974.97 | 210,066,077.13 |
| Othercurrentliabilities | ||
| Totalcurrentliabilities | 21,875,152,207.23 | 22,145,831,594.58 |
| Non-currentliabilities: | ||
| Insurancecontractreserve | ||
| Long-termborrowings | 5,700,546,887.07 | 4,890,315,729.90 |
| Bondspayable | 4,990,461,215.98 | 4,987,709,643.64 |
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Leaseliabilities | ||
| Long-termpayables | 548,489,971.61 | 383,287,104.62 |
| Long-termemployeebenefitspayable | 5,326,969.34 | 5,565,646.72 |
| Provisions | 93,742,032.32 | 206,591.51 |
| Deferredincome | 163,197,764.55 | 151,874,258.45 |
| Deferredincometaxliabilities | 90,279,421.81 | 95,467,096.05 |
| Othernon-currentliabilities | 106,356,896.20 | |
| Totalnon-currentliabilities | 11,698,401,158.88 | 10,514,426,070.89 |
| Totalliabilities | 33,573,553,366.11 | 32,660,257,665.47 |
| Owners’equity: | ||
| Sharecapital | 2,407,945,408.00 | 2,407,945,408.00 |
| Otherequityinstruments |
Including:Preferredshares
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 230,368,577.09 | 230,368,577.09 |
| Less:Treasurystock | ||
| Othercomprehensiveincome | -21,609,807.99 | -21,293,103.52 |
| Specificreserve | ||
| Surplusreserves | 1,211,721,109.67 | 1,211,721,109.67 |
| Generalreserve | ||
| Retainedearnings | 4,214,068,129.12 | 4,239,763,606.89 |
| TotalequityattributabletoownersoftheCompanyastheparent | 8,042,493,415.89 | 8,068,505,598.13 |
| Non-controllinginterests | 1,892,757,884.20 | 1,858,192,188.67 |
| Totalowners’equity | 9,935,251,300.09 | 9,926,697,786.80 |
| Totalliabilitiesandowners’equity | 43,508,804,666.20 | 42,586,955,452.27 |
Legalrepresentative:LiuFengxiCFO:LiChunleiHeadofthefinancialdepartment:FengJunxiu
2.BalanceSheetoftheCompanyastheParent
Unit:RMB
| Item | 30June2020 | 31December2019 |
| Currentassets: | ||
| Monetaryassets | 2,744,677,596.72 | 2,498,077,198.12 |
| Held-for-tradingfinancialassets | 61,494,666.97 | |
| Derivativefinancialassets | ||
| Notesreceivable | 1,421,289,007.19 | 2,148,312,821.38 |
| Accountsreceivable | 5,757,197,738.90 | 9,564,720,940.39 |
| Accountsreceivablefinancing | 66,002,903.68 | |
| Prepayments | 997,574,760.35 | 911,315,168.95 |
| Otherreceivables | 9,998,902,666.47 | 10,552,820,915.47 |
| Including:Interestreceivable | 9,652,188.83 | 7,431,353.86 |
| Dividendsreceivable | 522,819,271.02 | 518,580,871.02 |
| Inventories | 216,310,704.47 | 218,644,308.47 |
| Contractassets | ||
| Assetsheldforsale | ||
| Currentportionofnon-currentassets | ||
| Othercurrentassets | 835,821,579.38 | 1,096,689,897.40 |
Totalcurrentassets
| Totalcurrentassets | 21,971,774,053.48 | 27,118,078,820.83 |
| Non-currentassets: | ||
| Investmentsindebtobligations | ||
| Investmentsinotherdebtobligations | ||
| Long-termreceivables | ||
| Long-termequityinvestments | 8,686,847,379.26 | 7,712,084,967.88 |
| Investmentsinotherequityinstruments | 12,940,215.36 | 12,940,214.36 |
| Othernon-currentfinancialassets | 250,230,000.00 | 250,230,000.00 |
| Investmentproperty | 393,652,901.29 | 400,197,374.07 |
| Fixedassets | 433,937,544.20 | 444,107,402.57 |
| Constructioninprogress | 56,971,744.94 | 40,933,270.51 |
| Productivelivingassets | ||
| Oilandgasassets | ||
| Right-of-useassets | ||
| Intangibleassets | 76,427,525.88 | 80,470,750.60 |
| Developmentcosts | ||
| Goodwill | ||
| Long-termprepaidexpense | 15,403,163.88 | 39,047,325.68 |
| Deferredincometaxassets | 799,639,462.15 | 883,234,085.45 |
| Othernon-currentassets | ||
| Totalnon-currentassets | 10,726,049,936.96 | 9,863,245,391.12 |
| Totalassets | 32,697,823,990.44 | 36,981,324,211.95 |
| Currentliabilities: | ||
| Short-termborrowings | 5,351,872,747.45 | 5,014,312,913.74 |
| Held-for-tradingfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | 2,088,345,443.40 | 2,610,991,473.69 |
| Accountspayable | 5,692,768,111.90 | 11,078,648,690.19 |
| Advancesfromcustomers | 318,839,961.84 | |
| Contractliabilities | 987,888,282.21 | |
| Employeebenefitspayable | 62,326,362.38 | 125,402,307.95 |
| Taxespayable | 5,597,829.82 | 9,305,344.42 |
| Otherpayables | 3,919,872,978.82 | 3,193,392,734.69 |
| Including:Interestpayable | 214,053,062.68 | 223,847,860.57 |
Dividendspayable
| Dividendspayable | 120,397,270.40 | |
| Liabilitiesdirectlyassociatedwithassetsheldforsale | ||
| Currentportionofnon-currentliabilities | 122,000,000.00 | 130,512,375.00 |
| Othercurrentliabilities | ||
| Totalcurrentliabilities | 18,230,671,755.98 | 22,481,405,801.52 |
| Non-currentliabilities: | ||
| Long-termborrowings | 3,150,379,401.85 | 3,438,055,729.90 |
| Bondspayable | 4,990,461,215.98 | 4,987,709,643.64 |
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Leaseliabilities | ||
| Long-termpayables | 26,432,152.59 | 21,855,688.19 |
| Long-termemployeebenefitspayable | ||
| Provisions | 7,082,379.29 | 206,591.51 |
| Deferredincome | 48,269,020.80 | 59,545,839.30 |
| Deferredincometaxliabilities | ||
| Othernon-currentliabilities | 57,672,988.87 | |
| Totalnon-currentliabilities | 8,280,297,159.38 | 8,507,373,492.54 |
| Totalliabilities | 26,510,968,915.36 | 30,988,779,294.06 |
| 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 | -2,682,217.31 |
| Specificreserve | ||
| Surplusreserves | 1,227,564,785.19 | 1,227,564,785.19 |
| Retainedearnings | 2,440,009,032.41 | 2,245,698,875.22 |
| Totalowners’equity | 6,186,855,075.08 | 5,992,544,917.89 |
| Totalliabilitiesandowners’equity | 32,697,823,990.44 | 36,981,324,211.95 |
3.ConsolidatedIncomeStatement
Unit:RMB
Item
| Item | H12020 | H12019 |
| 1.Revenue | 17,524,183,896.74 | 26,036,442,813.84 |
| Including:Operatingrevenue | 17,524,183,896.74 | 26,036,442,813.84 |
| Interestincome | ||
| Insurancepremiumincome | ||
| Handlingchargeandcommissionincome | ||
| 2.Costsandexpenses | 18,353,408,488.70 | 26,698,772,822.16 |
| Including:Costofsales | 16,268,993,432.88 | 24,674,042,371.13 |
| Interestexpense | ||
| Handlingchargeandcommissionexpense | ||
| Surrenders | ||
| Netinsuranceclaimspaid | ||
| Netamountprovidedasinsurancecontractreserve | ||
| Expenditureonpolicydividends | ||
| Reinsurancepremiumexpense | ||
| Taxesandsurcharges | 29,184,440.36 | 37,389,092.27 |
| Sellingexpense | 969,224,381.98 | 1,067,945,914.36 |
| Administrativeexpense | 440,915,780.44 | 347,924,642.43 |
| R&Dexpense | 258,049,586.29 | 157,210,338.94 |
| Financecosts | 387,040,866.75 | 414,260,463.03 |
| Including:Interestexpense | 532,953,584.28 | 529,683,836.52 |
| Interestincome | 124,261,830.72 | 118,673,531.77 |
| Add:Otherincome | 318,094,852.34 | 343,884,971.36 |
| Returnoninvestment(“-”forloss) | 598,693,576.59 | 559,161,027.92 |
| Including:Shareofprofitorlossofjointventuresandassociates | 44,717,625.76 | 8,541,274.56 |
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Exchangegain(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | -3,005,381.67 | |
| Creditimpairmentloss(“-”forloss) | -39,887,507.18 | -49,476,223.76 |
| Assetimpairmentloss(“-”forloss) | -1,985,659.95 | -11,717,767.29 |
| Assetdisposalincome(“-”forloss) | 98,454,282.86 | 293,705,840.64 |
| 3.Operatingprofit(“-”forloss) | 144,144,952.70 | 470,222,458.88 |
Add:Non-operatingincome
| Add:Non-operatingincome | 8,661,773.48 | 22,269,442.09 |
| Less:Non-operatingexpense | 7,136,875.35 | 3,469,741.51 |
| 4.Profitbeforetax(“-”forloss) | 145,669,850.83 | 489,022,159.46 |
| Less:Incometaxexpense | 73,425,522.47 | 10,311,393.19 |
| 5.Netprofit(“-”fornetloss) | 72,244,328.36 | 478,710,766.27 |
| 5.1Byoperatingcontinuity | ||
| 5.1.1Netprofitfromcontinuingoperations(“-”fornetloss) | 72,244,328.36 | 478,710,766.27 |
| 5.1.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.2Byownership | ||
| 5.2.1NetprofitattributabletoownersoftheCompanyastheparent | 94,701,792.63 | 352,767,020.73 |
| 5.2.1Netprofitattributabletonon-controllinginterests | -22,457,464.27 | 125,943,745.54 |
| 6.Othercomprehensiveincome,netoftax | 1,158,124.63 | -3,108,112.33 |
| AttributabletoownersoftheCompanyastheparent | -316,704.47 | -3,659,886.69 |
| 6.1Itemsthatwillnotbereclassifiedtoprofitorloss | -4,800,000.00 | |
| 6.1.1Changescausedbyremeasurementsondefinedbenefitschemes | ||
| 6.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | -4,800,000.00 | |
| 6.1.4Changesinthefairvaluearisingfromchangesinowncreditrisk | ||
| 6.1.5Other | ||
| 6.2Itemsthatwillbereclassifiedtoprofitorloss | -316,704.47 | 1,140,113.31 |
| 6.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 6.2.3Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 6.2.4Creditimpairmentallowanceforinvestmentsinotherdebtobligations | ||
| 6.2.5Reserveforcashflowhedges | ||
| 6.2.6Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | -316,704.47 | 1,140,113.31 |
| 6.2.7Other | ||
| Attributabletonon-controllinginterests | 1,474,829.10 | 551,774.36 |
7.Totalcomprehensiveincome
| 7.Totalcomprehensiveincome | 73,402,452.99 | 475,602,653.94 |
| AttributabletoownersoftheCompanyastheparent | 94,385,088.16 | 349,107,134.04 |
| Attributabletonon-controllinginterests | -20,982,635.17 | 126,495,519.90 |
| 8.Earningspershare | ||
| 8.1Basicearningspershare | 0.0393 | 0.1465 |
| 8.2Dilutedearningspershare | 0.0393 | 0.1465 |
Legalrepresentative:LiuFengxiCFO:LiChunleiHeadofthefinancialdepartment:FengJunxiu
4.IncomeStatementoftheCompanyastheParent
Unit:RMB
| Item | H12020 | H12019 |
| 1.Operatingrevenue | 3,375,446,030.89 | 5,368,021,710.40 |
| Less:Costofsales | 2,951,099,830.85 | 5,264,149,493.15 |
| Taxesandsurcharges | 2,456,004.49 | 3,050,245.87 |
| Sellingexpense | 346,758,543.10 | 602,937,451.39 |
| Administrativeexpense | 159,850,052.74 | 116,641,903.32 |
| R&Dexpense | 25,536,247.49 | 21,884,250.47 |
| Financecosts | 174,356,605.73 | 263,815,281.41 |
| Including:Interestexpense | 430,353,727.41 | 484,646,778.75 |
| Interestincome | 242,970,045.01 | 225,398,798.03 |
| Add:Otherincome | 60,280,939.33 | 25,883,962.58 |
| Returnoninvestment(“-”forloss) | 508,865,061.70 | 185,975,738.88 |
| Including:Shareofprofitorlossofjointventuresandassociates | -699,839.38 | 3,928,528.71 |
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | -3,005,381.67 | |
| Creditimpairmentloss(“-”forloss) | -10,198,271.78 | -6,660,947.01 |
| Assetimpairmentloss(“-”forloss) | 5,726,253.37 | -3,172,282.22 |
| Assetdisposalincome(“-”forloss) | 98,600,000.00 | 200.00 |
| 2.Operatingprofit(“-”forloss) | 378,662,729.11 | -705,435,624.65 |
| Add:Non-operatingincome | 315,565.50 | 1,522,859.81 |
| Less:Non-operatingexpense | 225,566.38 | 957,357.54 |
| 3.Profitbeforetax(“-”forloss) | 378,752,728.23 | -704,870,122.38 |
Less:Incometaxexpense
| Less:Incometaxexpense | 84,301,541.05 | -175,447,791.41 |
| 4.Netprofit(“-”fornetloss) | 294,451,187.18 | -529,422,330.97 |
| 4.1Netprofitfromcontinuingoperations(“-”fornetloss) | 294,451,187.18 | -529,422,330.97 |
| 4.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.Othercomprehensiveincome,netoftax | ||
| 5.1Itemsthatwillnotbereclassifiedtoprofitorloss | ||
| 5.1.1Changescausedbyremeasurementsondefinedbenefitschemes | ||
| 5.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | ||
| 5.1.4Changesinthefairvaluearisingfromchangesinowncreditrisk | ||
| 5.1.5Other | ||
| 5.2Itemsthatwillbereclassifiedtoprofitorloss | ||
| 5.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 5.2.3Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 5.2.4Creditimpairmentallowanceforinvestmentsinotherdebtobligations | ||
| 5.2.5Reserveforcashflowhedges | ||
| 5.2.6Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | ||
| 5.2.7Other | ||
| 6.Totalcomprehensiveincome | 294,451,187.18 | -529,422,330.97 |
| 7.Earningspershare | ||
| 7.1Basicearningspershare | ||
| 7.2Dilutedearningspershare |
5.ConsolidatedCashFlowStatement
Unit:RMB
| Item | H12020 | H12019 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 17,398,919,184.79 | 25,473,835,784.74 |
| Netincreaseincustomerdepositsandinterbankdeposits |
Netincreaseinborrowingsfromthecentralbank
| Netincreaseinborrowingsfromthecentralbank | ||
| Netincreaseinloansfromotherfinancialinstitutions | ||
| Premiumsreceivedonoriginalinsurancecontracts | ||
| Netproceedsfromreinsurance | ||
| Netincreaseindepositsandinvestmentsofpolicyholders | ||
| Interest,handlingchargesandcommissionsreceived | ||
| Netincreaseininterbankloansobtained | ||
| Netincreaseinproceedsfromrepurchasetransactions | ||
| Netproceedsfromactingtradingofsecurities | ||
| Taxrebates | 108,772,128.38 | 507,670,463.23 |
| Cashgeneratedfromotheroperatingactivities | 2,067,915,221.82 | 2,148,795,820.05 |
| Subtotalofcashgeneratedfromoperatingactivities | 19,575,606,534.99 | 28,130,302,068.02 |
| Paymentsforcommoditiesandservices | 17,115,676,821.64 | 26,800,524,727.57 |
| Netincreaseinloansandadvancestocustomers | ||
| Netincreaseindepositsinthecentralbankandininterbankloansgranted | ||
| Paymentsforclaimsonoriginalinsurancecontracts | ||
| Netincreaseininterbankloansgranted | ||
| Interest,handlingchargesandcommissionspaid | ||
| Policydividendspaid | ||
| Cashpaidtoandforemployees | 917,713,468.04 | 926,887,184.41 |
| Taxespaid | 628,428,831.21 | 453,909,943.55 |
| Cashusedinotheroperatingactivities | 1,990,154,341.58 | 1,991,936,384.26 |
| Subtotalofcashusedinoperatingactivities | 20,651,973,462.47 | 30,173,258,239.79 |
| Netcashgeneratedfrom/usedinoperatingactivities | -1,076,366,927.48 | -2,042,956,171.77 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 387,119,277.60 | 221,738,210.00 |
| Returnoninvestment | 80,623,751.66 | 73,227,388.55 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 40,444,106.56 | 100,441,951.60 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | 3,287,293.86 | 32,675,173.25 |
| Cashgeneratedfromotherinvestingactivities | 1,208,757,541.14 | 1,396,866,878.42 |
| Subtotalofcashgeneratedfrominvestingactivities | 1,720,231,970.82 | 1,824,949,601.82 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 1,701,324,660.79 | 642,392,906.08 |
Paymentsforinvestments
| Paymentsforinvestments | 8,670,001.00 | 1,156,259,360.00 |
| Netincreaseinpledgedloansgranted | ||
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
| Cashusedinotherinvestingactivities | 152,930,416.99 | 700,033,420.00 |
| Subtotalofcashusedininvestingactivities | 1,862,925,078.78 | 2,498,685,686.08 |
| Netcashgeneratedfrom/usedininvestingactivities | -142,693,107.96 | -673,736,084.26 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | 94,836,439.00 | 165,523,493.96 |
| Including:Capitalcontributionsbynon-controllingintereststosubsidiaries | 94,836,439.00 | 165,523,493.96 |
| Borrowingsraised | 10,423,573,485.62 | 15,051,901,964.42 |
| Cashgeneratedfromotherfinancingactivities | 945,876,029.73 | 350,346,627.50 |
| Subtotalofcashgeneratedfromfinancingactivities | 11,464,285,954.35 | 15,567,772,085.88 |
| Repaymentofborrowings | 8,790,985,658.27 | 11,054,191,049.91 |
| Interestanddividendspaid | 383,175,132.72 | 255,889,282.00 |
| Including:Dividendspaidbysubsidiariestonon-controllinginterests | 10,513,500.00 | |
| Cashusedinotherfinancingactivities | 1,033,904,254.73 | 264,881,928.72 |
| Subtotalofcashusedinfinancingactivities | 10,208,065,045.72 | 11,574,962,260.63 |
| Netcashgeneratedfrom/usedinfinancingactivities | 1,256,220,908.63 | 3,992,809,825.25 |
| 4.Effectofforeignexchangerateschangesoncashandcashequivalents | 7,043,028.89 | -9,021,516.41 |
| 5.Netincreaseincashandcashequivalents | 44,203,902.08 | 1,267,096,052.81 |
| Add:Cashandcashequivalents,beginningoftheperiod | 4,493,701,917.22 | 3,434,149,481.72 |
| 6.Cashandcashequivalents,endoftheperiod | 4,537,905,819.30 | 4,701,245,534.53 |
6.CashFlowStatementoftheCompanyastheParent
Unit:RMB
| Item | H12020 | H12019 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 3,385,079,007.56 | 10,761,635,579.27 |
| Taxrebates | 35,643,807.10 | 30,608,798.86 |
| Cashgeneratedfromotheroperatingactivities | 6,304,828,904.25 | 6,301,905,413.21 |
| Subtotalofcashgeneratedfromoperatingactivities | 9,725,551,718.91 | 17,094,149,791.34 |
| Paymentsforcommoditiesandservices | 2,037,612,946.86 | 8,915,821,945.44 |
| Cashpaidtoandforemployees | 193,201,951.98 | 376,948,025.22 |
Taxespaid
| Taxespaid | 7,317,308.11 | 30,146,084.97 |
| Cashusedinotheroperatingactivities | 7,103,806,174.57 | 7,232,326,927.95 |
| Subtotalofcashusedinoperatingactivities | 9,341,938,381.52 | 16,555,242,983.58 |
| Netcashgeneratedfrom/usedinoperatingactivities | 383,613,337.39 | 538,906,807.76 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 395,943,265.00 | 105,558,710.00 |
| Returnoninvestment | 15,939,575.07 | 40,874,813.31 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 53,456.56 | 198,805.64 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
| Cashgeneratedfromotherinvestingactivities | 1,129,057,041.14 | 672,765,551.82 |
| Subtotalofcashgeneratedfrominvestingactivities | 1,540,993,337.77 | 819,397,880.77 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 44,012,965.74 | 39,488,957.39 |
| Paymentsforinvestments | 966,864,001.00 | 551,150,000.00 |
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
| Cashusedinotherinvestingactivities | 112,930,416.99 | 4,224,938,500.00 |
| Subtotalofcashusedininvestingactivities | 1,123,807,383.73 | 4,815,577,457.39 |
| Netcashgeneratedfrom/usedininvestingactivities | 417,185,954.04 | -3,996,179,576.62 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | ||
| Borrowingsraised | 7,094,864,642.27 | 7,442,215,982.73 |
| Cashgeneratedfromotherfinancingactivities | 132,563,907.20 | |
| Subtotalofcashgeneratedfromfinancingactivities | 7,227,428,549.47 | 7,442,215,982.73 |
| Repaymentofborrowings | 6,842,198,610.76 | 3,053,659,242.73 |
| Interestanddividendspaid | 322,326,562.77 | 204,582,931.37 |
| Cashusedinotherfinancingactivities | 381,866,448.33 | 8,079,215.50 |
| Subtotalofcashusedinfinancingactivities | 7,546,391,621.86 | 3,266,321,389.60 |
| Netcashgeneratedfrom/usedinfinancingactivities | -318,963,072.39 | 4,175,894,593.13 |
| 4.Effectofforeignexchangerateschangesoncashandcashequivalents | 3,386,774.26 | -9,427,666.78 |
| 5.Netincreaseincashandcashequivalents | 485,222,993.30 | 709,194,157.49 |
| Add:Cashandcashequivalents,beginningoftheperiod | 1,337,342,186.92 | 1,497,794,555.85 |
| 6.Cashandcashequivalents,endoftheperiod | 1,822,565,180.22 | 2,206,988,713.34 |
7.ConsolidatedStatementsofChangesinOwners’Equity
H12020
Unit:RMB
Item
| Item | H12020 | ||||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||||
| 1.Balanceasattheendoftheprioryear | 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 | |||||||
| Add:Adjustmentforchangeinaccountingpolicy | |||||||||||||||
| Adjustmentforcorrectionofpreviouserror | |||||||||||||||
| Adjustmentforbusinesscombinationundercommoncontrol | |||||||||||||||
| Otheradjustments | |||||||||||||||
| 2.Balanceasatthebeginningoftheyear | 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 | |||||||
| 3.Increase/decreaseintheperiod | -316,704.47 | -25,695,477.77 | -26,012,182.24 | 34,565,695.53 | 8,553,513.29 | ||||||||||
(“-”fordecrease)
| (“-”fordecrease) | ||||||||
| 3.1Totalcomprehensiveincome | -316,704.47 | 94,701,792.63 | 94,385,088.16 | -20,982,635.17 | 73,402,452.99 | |||
| 3.2Capitalincreasedandreducedbyowners | 66,061,830.70 | 66,061,830.70 | ||||||
| 3.2.1Ordinarysharesincreasedbyowners | 86,836,439.00 | 86,836,439.00 | ||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | ||||||||
| 3.2.4Other | -20,774,608.30 | -20,774,608.30 | ||||||
| 3.3Profitdistribution | -120,397,270.40 | -120,397,270.40 | -10,513,500.00 | -130,910,770.40 | ||||
| 3.3.1Appropriationtosurplusreserves | ||||||||
| 3.3.2Appropriationtogeneralreserve | ||||||||
| 3.3.3Appropriationtoowners(orshareholders) | -120,397,270.40 | -120,397,270.40 | -10,513,500.00 | -130,910,770.40 | ||||
| 3.3.4Other | ||||||||
| 3.4Transferswithinowners’equity | ||||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | ||||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | ||||||||
| 3.4.3Lossoffsetbysurplusreserves |
3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings
| 3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings | |||||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | |||||||||||||
| 3.4.6Other | |||||||||||||
| 3.5Specificreserve | |||||||||||||
| 3.5.1Increaseintheperiod | |||||||||||||
| 3.5.2Usedintheperiod | |||||||||||||
| 3.6Other | |||||||||||||
| 4.Balanceasattheendoftheperiod | 2,407,945,408.00 | 230,368,577.09 | -21,609,807.99 | 1,211,721,109.67 | 4,214,068,129.12 | 8,042,493,415.89 | 1,892,757,884.20 | 9,935,251,300.09 |
H12019
Unit:RMB
Item
| Item | H12019 | ||||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||||
| 1.Balanceasattheendoftheprioryear | 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:Adjustmentforchangeinaccountingpolicy | -2,884,254.62 | -2,884,254.62 | -2,884,254.62 | ||||||||||||
| Adjustmentforcorrectionofpreviouserror | |||||||||||||||
| Adjustmentforbusinesscombinationundercommoncontrol | |||||||||||||||
| Otheradjustments | |||||||||||||||
| 2.Balanceasatthebeginningoftheyear | 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) | 29,405,337.77 | -3,659,886.69 | 71,737.0 | 111,972,479.93 | 137,789,668.09 | 247,437,548.62 | 385,227,216.71 | ||||||||
| 8 | |||||||||
| 3.1Totalcomprehensiveincome | -3,659,886.69 | 352,767,020.73 | 349,107,134.04 | 126,495,519.90 | 475,602,653.94 | ||||
| 3.2Capitalincreasedandreducedbyowners | 120,942,028.72 | 120,942,028.72 | |||||||
| 3.2.1Ordinarysharesincreasedbyowners | 118,854,770.64 | 118,854,770.64 | |||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | |||||||||
| 3.2.4Other | 2,087,258.08 | 2,087,258.08 | |||||||
| 3.3Profitdistribution | -240,794,540.80 | -240,794,540.80 | -240,794,540.80 | ||||||
| 3.3.1Appropriationtosurplusreserves | |||||||||
| 3.3.2Appropriationtogeneralreserve | |||||||||
| 3.3.3Appropriationtoowners(orshareholders) | -240,794,540.80 | -240,794,540.80 | -240,794,540.80 | ||||||
| 3.3.4Other | |||||||||
| 3.4Transferswithinowners’equity | |||||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | |||||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||||||
| 3.4.3Lossoffsetbysurplusreserves |
3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings
| 3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings | |||||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | |||||||||||||
| 3.4.6Other | |||||||||||||
| 3.5Specificreserve | |||||||||||||
| 3.5.1Increaseintheperiod | |||||||||||||
| 3.5.2Usedintheperiod | |||||||||||||
| 3.6Other | 29,405,337.77 | 71,737.08 | 29,477,074.85 | 29,477,074.85 | |||||||||
| 4.Balanceasattheendoftheperiod | 2,407,945,408.00 | 237,761,961.98 | -14,198,105.77 | 71,737.08 | 1,227,564,785.19 | 4,380,496,417.52 | 8,239,642,204.00 | 1,594,069,068.88 | 9,833,711,272.88 |
8.StatementsofChangesinOwners’EquityoftheCompanyastheParent
H12020
Unit:RMB
Item
| Item | H12020 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | ||||||||||
| 1.Balanceasattheendoftheprioryear | 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 | ||||||
| Add:Adjustmentforchangeinaccountingpolicy | ||||||||||||
| Adjustmentforcorrectionofpreviouserror | ||||||||||||
| Otheradjustments | 20,256,240.41 | 20,256,240.41 | ||||||||||
| 2.Balanceasatthebeginningoftheyear | 2,407,945,408.00 | 114,018,066.79 | -2,682,217.31 | 1,227,564,785.19 | 2,265,955,115.63 | 6,012,801,158.30 | ||||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 174,053,916.78 | 174,053,916.78 | ||||||||||
| 3.1Totalcomprehensiveincome | 294,451,187.18 | 294,451,187.18 | ||||||||||
| 3.2Capitalincreasedandreducedbyowners | ||||||||||||
| 3.2.1Ordinarysharesincreasedbyowners | ||||||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | ||||||||||||
3.2.4Other
| 3.2.4Other | ||||
| 3.3Profitdistribution | -120,397,270.40 | -120,397,270.40 | ||
| 3.3.1Appropriationtosurplusreserves | ||||
| 3.3.2Appropriationtoowners(orshareholders) | -120,397,270.40 | -120,397,270.40 | ||
| 3.3.3Other | ||||
| 3.4Transferswithinowners’equity | ||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | ||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | ||||
| 3.4.3Lossoffsetbysurplusreserves | ||||
| 3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings | ||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | ||||
| 3.4.6Other | ||||
| 3.5Specificreserve | ||||
| 3.5.1Increaseintheperiod | ||||
| 3.5.2Usedintheperiod | ||||
| 3.6Other |
4.Balanceasattheendoftheperiod
| 4.Balanceasattheendoftheperiod | 2,407,945,408.00 | 114,018,066.79 | -2,682,217.31 | 1,227,564,785.19 | 2,440,009,032.41 | 6,186,855,075.08 |
H12019
Unit:RMB
Item
| Item | H12019 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | ||||||||||
| 1.Balanceasattheendoftheprioryear | 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:Adjustmentforchangeinaccountingpolicy | -2,127,505.16 | -2,127,505.16 | ||||||||||
| Adjustmentforcorrectionofpreviouserror | ||||||||||||
| Otheradjustments | 7,971,211.72 | 7,971,211.72 | ||||||||||
| 2.Balanceasatthebeginningoftheyear | 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) | -770,216,871.77 | -770,216,871.77 | ||||||||||
| 3.1Totalcomprehensiveincome | -529,422,330.97 | -529,422,330.97 | ||||||||||
| 3.2Capitalincreasedandreducedbyowners | ||||||||||||
| 3.2.1Ordinarysharesincreasedbyowners | ||||||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | ||||||||||||
| 3.2.4Other | ||||||||||||
3.3Profitdistribution
| 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 | ||||||||||
| 3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings | ||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | ||||||||||
| 3.4.6Other | ||||||||||
| 3.5Specificreserve | ||||||||||
| 3.5.1Increaseintheperiod | ||||||||||
| 3.5.2Usedintheperiod | ||||||||||
| 3.6Other | ||||||||||
| 4.Balanceasattheendoftheperiod | 2,407,945,408.00 | 114,018,066.79 | -1,182,217.31 | 1,227,564,785.19 | 2,275,798,775.64 | 6,024,144,818.31 |
KonkaGroupCo.,Ltd.NotestoFinancialStatementsforH12020(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,asof30June2020,thecompanyhasissuedatotalof2,407,945,408.00shares(denominationof1yuanpershare)witharegisteredcapitalof2,407,945,408.00yuan.
3.Thenatureofthecompany'sbusinessandmainoperatingactivitiesTheCompanyanditssubsidiariesaremainlyengagedintheproductionandsalesofcolourTVs,whitegoodsetc.;tradebusiness,semi-conductorbusiness,environmentalprotection,etc.
4.ThefinancialstatementscontainedhereinhavebeenapprovedforissuebytheBoardofDirectorsoftheCompanyon26August2020.II.Consolidationscope
1.Asof30June2020,thecompanyhasatotalof154subsidiariesincludedintheconsolidationscope.Fordetails,pleaserefertoNote8"EquityinOtherEntities".Theconsolidationscopeofthecompanythisyearincreasedby11householdsanddecreasedby3householdscomparedtothepreviousyear.Fordetails,pleaserefertoNote7“Changesintheconsolidationscope”.
2.AchecklistofcorporatenamesandtheirabbreviationsmentionedinthisReport
Corporatename
| 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 |
Corporatename
| Corporatename | Abbreviation |
| 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 |
| 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 |
| DongguanKonkaPackingMaterialsCo.,Ltd. | DongguanPacking |
| ShenzhenE2infoNetworkTechnologyCo.,Ltd. | E2info |
| E2info(Hainan)NetworkTechnologyCo.,Ltd. | E2info(Hainan) |
| BeijingKonkaElectronicCo.,Ltd. | BeijingKonkaElectronic |
| KonkaFinancialLeasing(Tianjin)Co.,Ltd. | KonkaLeasing |
| ShenzhenKonkaCircuitCo.,Ltd. | KonkaCircuit |
| BoluoKonkaPrecisionTechnologyCo.,Ltd. | BoluoKonkaPrecision |
| XiamenDalongTradingCo.,Ltd. | XiamenDalong |
| BoluoKonkaPCBCo.,Ltd. | BoluoKonka |
| HongKongKonkaLimited | HongKongKonka |
| KonkaElectricalAppliancesInvestment&DevelopmentCo.,Ltd. | KonkaElectricalAppliancesInvestment |
| ChainKingdomMemoryTechnologiesCo.,Limited | ChainKingdomMemoryTechnologies |
Corporatename
| Corporatename | Abbreviation |
| 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 |
Corporatename
| Corporatename | Abbreviation |
| BinzhouEconZhongkeEnvironmentalProtectionTechnologyCo.,Ltd. | BinzhouEconZhongke |
| LaizhouLairunHoldingCo.,Ltd. | LairunHolding |
| LaizhouLairunEnvironmentalProtectionCo.,Ltd. | LairunEnvironmentalProtection |
| LaizhouLairunSewageTreatmentCo.,Ltd. | LairunSewage |
| LaizhouBinhaiSewageTreatmentCo.,Ltd. | BinhaiSewage |
| EconEnvironmentalEngineeringCo.,Ltd. | EconEnvironmentalEngineering |
| RushanYikeWaterEnvironmentManagementCo.,Ltd. | RushanYike |
| BinzhouWeiyijieEnvironmentalTechnologyCo.,Ltd. | BinzhouWeiyijie |
| BinzhouBeihaiJingmaiIndustrialDevelopmentCo.,Ltd. | BinzhouBeihaiJingmai |
| YantaiChunzhiranEnvironmentalTechnologyCo.,Ltd. | Chunzhiran |
| DonggangKangrunEnvironmentManagementCo.,Ltd. | DonggangKangrun |
| KangrunhongEnvironmentalTechnology(Yantai)Co.,Ltd. | YantaiKangrun |
| DayiKangrunWaterCo.,Ltd. | DayiKangrunWater |
| SuiningPengxiKangrunEnvironmentManagementCo.,Ltd. | SuiningPengxiKangrun |
| SubeiMongolianAutonomousCountyKangrunWaterCo.,Ltd. | SubeiKangrunWater |
| WeifangSihaiKangrunInvestmentandOperationCo.,Ltd. | WeifangSihaiKangrun |
| 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 |
| YantaiKonkaIndustrialCo.,Ltd. | YantaiKonkaIndustrial |
| YantaiKangjinTechnologyDevelopmentCo.,Ltd. | YantaiKangjin |
| ShandongKangxinIndustrialDevelopmentCo.,Ltd. | ShandongKangxin |
| JiangxiKonkaNewMaterialTechnologyCo.,Ltd. | JiangxiKonka |
| JiangxiXinfengMicrocrystallineJadeCo.,Ltd. | XinfengMicrocrystalline |
| JiangxiGoldenPhoenixNanoCrystallizedGlassCo.,Ltd. | NanoCrystallizedGlass |
| ShenzhenNianhuaEnterpriseManagementCo.,Ltd. | ShenzhenNianhua |
Corporatename
| Corporatename | Abbreviation |
| 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 |
| AnhuiKonkaDebaoNewMaterialTechnologyCo.,Ltd. | DebaoNewMaterialTechnology |
| SuiningJiarunRealEstateCo.,Ltd. | SuiningJiarunRealEstate |
| ChuzhouKangxinHealthIndustryDevelopmentCo.,Ltd. | ChuzhouKangxinHealthIndustry |
| HubeiKangxinglongEnvironmentalProtectionCo.,Ltd. | KangxinglongEnvironmentalProtection |
| E3info(Hainan)TechnologyCo.,Ltd. | E3info |
| ShenzhenKonkaYifangTechnologyCo.,Ltd. | YifangTechnology |
| ZhongshanKangxinElectronicTechnologyCo.,Ltd. | ZhongshanKangxin |
| LiaoyangKangshunIntelligentTechnologyCo.,Ltd. | LiaoyangKangshun |
| NanjingKonkaElectronicsCo.,Ltd. | NanjingKonkaElectronics |
Corporatename
| Corporatename | Abbreviation |
| GaopingKangrunEnvironmentalProtection&WaterCo.,Ltd. | GaopingKangrun |
| MengchengKangrunAnjianWaterCo.,Ltd. | MengchengKangrun |
| XixianKangrunXijianWaterEnvironmentDevelopmentCo.,Ltd. | XixianKangrun |
| MorsemiSemiconductorTechnology(HongKong)Limited | MorsemiSemiconductor(HongKong) |
| ChongqingKangxingruiScrapedAutomobileRecyclingCo.,Ltd. | KangxingruiAutomobileRecycling |
| KonkaXinyunSemiconductorTechnology(Yancheng)Co.,Ltd. | KonkaXinyun |
| ChongqingKangleiOptoelectronicTechnologyCo.,Ltd. | ChongqingKanglei |
| YibinKangrunEnvironmentalTechnologyCo.,Ltd. | YibinKangrun |
III.BasisforthePreparationofFinancialStatements
1.BasicforthepreparationWiththegoing-concernassumptionasthebasisandbasedontransactionsandothereventsthatactuallyoccurred,theCompanypreparedfinancialstatementsinaccordancewithTheAccountingStandardsforBusinessEnterprisesissuedbytheMinistryofFinanceandotherregulationsaswellastheaccountingpoliciesandestimationsstipulatedintheNoteIV“SignificantAccountingPoliciesandEstimations”.
2.Going-concernTheCompanyhastheoperationhistorywithprofitsandfinancialsupport.Thus,itisreasonabletopreparethefinancialstatementsbasedongoing-concern.IV.ImportantAccountingPoliciesandEstimations
Thespecificaccountingpoliciesandaccountingestimatesformulatedbythecompanybasedontheactualproductionandoperationcharacteristicsincludetherecognitionandmeasurementofbaddebtprovisionforreceivables,themeasurementofissuedinventories,theclassificationoffixedassetsanddepreciationmethods,amortizationofintangibleassets,revenuerecognitionandmeasurement,etc.
1.StatementofCompliancewiththeAccountingStandardsforBusinessEnterprisesThefinancialstatementspreparedbytheCompanyareincompliancewithincompliancewiththeAccountingStandardsforBusinessEnterprises,whichfactuallyandcompletelypresenttheCompany’sfinancialpositions,businessresultsandcashflows,andotherrelevantinformation.
2.FiscalPeriodTheCompany’sfiscalyearstartsonJanuary1andendsonDecember31ofeveryyearaccordingtotheGregoriancalendar.
3.OperatingCycleAnoperatingcyclefortheCompanyis12months,whichisalsotheclassificationcriterionfortheliquidityofitsassetsandliabilities.
4.RecordingCurrencyTheCompanyadoptedRenminbiasthebookkeepingbasecurrency.
5.AccountingTreatmentMethodsforBusinessCombinationsundertheSameControlornotundertheSameControlAsthecombiningparty,theassetsandliabilitiesobtainedbytheCompanyinabusinesscombination
underthesamecontrolshallbemeasuredonthebasisoftheircarryingvalueinthefinalcontrollingpartyonthecombiningdate.Asforthebalancebetweenthecarryingvalueofthenetassetsobtainedandthecarryingvalueoftheconsiderationpaidbyit,thecapitalreserveshallbeadjusted.Ifthecapitalreserveisnotsufficienttobeoffset,theretainedearningsshallbeadjusted.Thedirectcostsincurredbythemergingpartyforthebusinesscombinationshallbeincludedinthecurrentprofitandlosswhenincurred.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,andchangesofothercomprehensiveincomeandothernet
assetsshalloffsetthebeginningretainedearningsandcurrentprofitsandlossesofthecomparativestatementperiodrespectively.Forsubsidiariesacquiredthroughbusinesscombinationunderthedifferentcontrol,theoperatingresultsandcashflowshallbeincludedintheconsolidatedfinancialstatementsfromthedatewhentheCompanyobtainsthecontrolright.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,theCompanyonlyrecognizedtheshareoftheotherjointoperatorsinthegainsandlossesarisingfromthetransaction.
8.CashandCashEquivalentsIntheCompany’sunderstanding,thecashinthecashflowstatementincludescashonhandanddepositsthatcanbeusedforcover,thecashequivalentsinthecashflowstatementincludehigh
circulatinginvestmentsheldwithinthreemonthswhichareeasilyconvertibleintoknownamountofcashandwhoserisksinchangeofvalueareminimal.
9.ForeignCurrencyBusinessesandTranslationofForeignCurrencyFinancialStatements
(1)ConversionmethodforforeigncurrencytransactionsTheforeigncurrencytransactionsthatoccurredinthecompanyareconvertedintotheamountofthebookkeepingstandardcurrencyaccordingtotheexchangerateatthebeginningofthetransactionday(usuallyrefertothemiddlepriceoftheforeignexchangepriceofthedayannouncedbythePeople'sBankofChina),butthecompany'sforeigncurrencyexchangebusinessoccursOrtransactionsinvolvingforeigncurrencyexchangeshallbeconvertedintotheamountoftherecordingcurrencyinaccordancewiththeexchangerateactuallyadopted.
(2)Conversionmethodforforeigncurrencymonetaryitemsandforeigncurrencynon-monetaryitemsOnthebalancesheetdate,foreigncurrencymonetaryitemsareconvertedatthespotexchangerateonthebalancesheetdate.Theresultingexchangedifferences,exceptfor:
①TheexchangedifferencesarisingfromforeigncurrencyspecialborrowingsrelatedtotheacquisitionandconstructionofassetsthatmeetthecapitalizationrequirementsarebasedonTheprincipleofcapitalizationofborrowingcosts;②Exchangedifferenceofhedginginstrumentsusedforeffectivehedgeofnetinvestmentinoverseasoperations(thedifferenceisincludedinothercomprehensiveincome,anditisnotrecognizedascurrentprofitorlossuntilthenetinvestmentisdisposedof);and
③Foreigncurrencymonetaryitemsforsale,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’equityitemsinthebalancesheetshallbetransferred
tothecurrentprofitorlossinfullorinproportiontothedisposaloftheoverseasoperations.Foreigncurrencycashflowsandcashflowsofoverseassubsidiariesaretranslatedatthecurrentaverageexchangerateonthecashflowdate.Theimpactofexchangeratechangesoncashisusedasanadjustmentitemandispresentedseparatelyinthecashflowstatement.Theopeningamountandtheactualnumberofthepreviousperiodarelistedbasedontheamountconvertedfromthefinancialstatementsofthepreviousperiod.Whendisposingofalltheowner'sequityofthecompany'soverseasoperationsorlosingcontrolofoverseasoperationsduetothedisposalofpartoftheequityinvestmentorotherreasons,theshareholders'equityitemslistedinthebalancesheet,relatedtotheoverseasoperations,areattributedtothemother.Theforeigncurrencystatementtranslationdifferencesofthecompany'sowner'sequityarealltransferredtothecurrentprofitandlossdisposal.Whenthedisposalofpartoftheequityinvestmentorotherreasonsleadstoareductionintheproportionofoverseasoperatingequityheldbutwithoutlossofcontroloveroverseasoperations,theforeigncurrencystatementtranslationdifferencerelatedtotheoverseasoperatingdisposalportionwillbevestedinminorityshareholders’equityandnottransferredtocurrentprofitorloss.Whendisposingofpartoftheequityofanoverseasoperationasanassociateorjointventure,theforeigncurrencystatementtranslationdifferencerelatedtotheoverseasoperationistransferredtothecurrentprofitorlossinproportiontothedisposaloftheoverseasoperation.
10.FinancialAssetsandFinancialLiabilitiesTheCompanyrecognizesafinancialassetorliabilitywhenitbecomesapartyoftherelevantfinancialinstrumentcontract.
(1)Financialassets
1)Classification,recognitionandmeasurementoffinancialassetsTheCompanyclassifiesthefinancialassetsintofinancialassetsmeasuredatamortizedcost,financialassetsmeasuredbythefairvalueandthechangesrecordedinothercomprehensiveincomeandfinancialassetsatfairvaluethroughprofitorlossbasedonthebusinessmodelforfinancialassetsmanagementandcharacteristicsofcontractualcashflowoffinancialassetsTheCompanyclassifiedthefinancialassetsmeetingthefollowingconditionsatthesametimeasfinancialassetsatamortizedcost:
①ThebusinessmodeoftheCompanytomanagethefinancialassetstargetsatcollectingthecontractualcashflow.②Thecontractofthefinancialassetsstipulatesthatthecashflowgeneratedinthespecificdateisthepaymentoftheinterestbasedontheprincipalandoutstandingprincipalamount.Thesefinancialassetsinitiallymeasuredatfairvalueandrelevanttransactioncostshallbeincludedintotheinitialrecognizedamountandsubsequentlymeasuredatamortizedcost.Exceptforthosedesignatedtobehedgeitems,thedifferencebetweentheinitialrecognizedamountandtheamountdueshallbeamortizedatactualinterestrateandtheiramortization,impairmentandexchangegainandlossaswellasgainsorlossesarisingfromderecognitionshallberecordedintothecurrentprofitorloss.TheCompanyclassifiedthefinancialassetsmeetingthefollowingconditionsatthesametimeasfinancialassetsatfairvaluethroughothercomprehensiveincome:①TheBusinessmodeformanagingfinancialassetsoftheCompanytakescontractcashflowcollectedastargetandsellingastarget.②Thecontractofthefinancialassetsstipulatesthatthecashflowgeneratedinthespecificdateisthepaymentoftheinterestbasedontheprincipalandoutstandingprincipalamount.Thesefinancialassetsinitiallymeasuredatfairvalueandrelevanttransactioncostshallbeincludedintotheinitialrecognizedamount.Exceptforthosedesignatedashedgeditems,asforthesefinancialassets,exceptforgainsorlossesoncreditimpairment,exchangegainandlossandinterestoffinancialassetsmeasuredatactualinterestrate,othergainsorlossesgeneratedshallberecordedintoothercomprehensiveincome.Whenderecognized,theaccumulatedgainsandlossesoriginallyrecordedintoothercomprehensiveincomeshallbetransferredoutintothecurrentprofitorloss.TheCompanyrecognizesinterestincomeaccordingtotheeffectiveinterestratemethod.Interestincomeiscalculatedanddeterminedaccordingtothebookbalanceofthefinancialassetmultipliedbytheactualinterestrate,exceptforthefollowingcircumstances:①Forthefinancialassetwith
creditimpairmentthathasbeenpurchasedororiginated,fromtheinitialrecognition,theinterestincomeiscalculatedanddeterminedaccordingtotheamortizedcostofthefinancialassetandtheactualinterestrateadjustedbycredit.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)Financialliabilities
1)Classification,recognitionandmeasurementoffinancialliabilitiesTheCompany’sfinancialliabilitiesare,oninitialrecognition,classifiedintofinancialliabilitiesatfairvaluethroughprofitorlossandotherfinancialliabilities.
Financialliabilitiesatfairvaluethroughprofitorlossincludeheld-for-tradingfinancialliabilitiesandfinancialliabilitiesdesignatedattheinitialrecognitiontobemeasuredbythefairvalueandtheirchangesarerecordedinthecurrentprofitorloss(therelevantclassificationbasisshallbedisclosedreferringtotheclassificationbasisforfinancialassets).Thesubsequentmeasurementshallbeatfairvalueandgainsorlossesarisingfromchangesinfairvalueandthedividendsandinterestexpenserelatedtothefinancialliabilityshallbethecurrentprofitorloss.Otherfinancialliabilities(discloserelevantdetailsbasedonactualsituation)shallbesubsequentlymeasuredatamortizedcostwithactualinterestrate.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)OffsettingfinancialassetsandfinancialliabilitiesTheCompany’sfinancialassetsandliabilitiesshallbeseparatelypresentedinthebalancesheetandnotsetoffeachother.Butwhenmeetingthefollowingconditionsatthesametime,thenetamountafteroffsetshallbepresentedinthebalancesheet:(1)TheCompanyhasthestatutoryrighttosetoffrecognizedamountwhichiscurrentlyexecutable;(2)TheCompanyplanstosettlewiththenetamountorrealizethefinancialassetandpayoffthefinancialliabilitysimultaneously.
(5)TheDistinctionbetweenFinancialLiabilitiesandEquityInstrumentsandRelatedTreatmentMethodsTheCompanydistinguishesthefinancialliabilitiesandequityinstrumentsaccordingtothefollowingprinciples:(1)IftheCompanycannotunconditionallyavoidperformingacontractualobligationbydeliveringcashorotherfinancialassets,thecontractualobligationmeetsthedefinitionoffinancialliabilities.Althoughsomefinancialinstrumentsdonotexplicitlyincludethetermsandconditionsoftheobligationtodelivercashorotherfinancialassets,theymayindirectlyformcontractualobligationsthroughothertermsandconditions.(2)IfafinancialinstrumentmustbesettledwithorcanbesettledwiththeCompany'sownequityinstrument,itisnecessarytoconsiderwhethertheCompany'sownequityinstrumentusedtosettletheinstrumentisusedasasubstituteforcashorotherfinancialassets,ortoenabletheholderoftheinstrumenttoenjoytheresidualequityintheassetsoftheissuerafterdeductingallliabilities.Ifitbelongstotheformercondition,theinstrumentisthefinancialliabilityoftheissuer;ifitbelongstothelattercondition,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,theCompanyshallcalculateandwithdrawcorrespondingimpairment
provisionsandrecognizecorrespondingcreditimpairmentlossesaccordingtoapplicableexpectedcreditlossmeasurementmethods(generalmethodsorsimplifiedmethods)withtheexpectedcreditlossasthebasis.Creditlossreferstothedifferencebetweenallreceivablecontractcashflowsandallexpectedcashflowsthatarediscountedtothepresentvaluebasedontheoriginalactualinterestrate--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)MethodsforDeterminingtheCreditLossofVariousFinancialAssets①NotesReceivablesFornotesreceivable,theCompanyshallmeasuretheprovisionforlossbasedonthespecificexpectedcreditlossduringtheentireperiodofexistence.Accordingtothecreditriskcharacteristicsthereof,exceptthosewithseparateevaluationofcreditrisk,notesreceivablecanbedividedintodifferentcombinations:
Item
| Item | Basis |
| BankAcceptance | TheAcceptershallbethebankwithhighcredit |
levelandlowrisks
| levelandlowrisks | |
| 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,theCompanyshall
dividethemintodifferentcombinationsbasedonthespecificcreditriskfeatures:
Item
| Item | Basis |
| FinancingLeaseCombination | Regardingthelong-termreceivablesrelatedtothefinancingleaseasthecreditriskcharacteristics |
| 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)Recognitionbasisofnetrealizablevalueandwithdrawalmethodofdepreciationreservesfor
inventoriesThenetrealizablevaluerefers,intheordinarycourseofbusiness,totheaccountafterdeductingtheestimatedcostofcompletion,estimatedsaleexpenseandrelevanttaxesfromtheestimatedsalepriceofinventories.Thenetrealizablevalueofinventoriesshallbefixedonthebasisofvalidevidenceaswellasunderconsiderationofpurposeofinventoriesandtheeffectofeventsafterbalance-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.ContractAssets
(1)ConfirmationmethodsandstandardsofcontractassetsContractassetsrefertotherightofthecompanytoreceiveconsiderationaftertransferringgoodstocustomers,andthisrightdependsonfactorsotherthanthepassageoftime.Ifthecompanysellstwoclearlydistinguishableproductstocustomers,ithastherighttoreceivepaymentbecauseoneoftheproductshasbeendelivered,butthepaymentisalsodependentonthedeliveryoftheotherproduct,thecompanyhastherighttoreceivepaymentasacontractassets.
(2)DeterminationmethodandaccountingtreatmentmethodofexpectedcreditlossofcontractassetsThemethodofdeterminingtheexpectedcreditlossofcontractassets,refertothedescriptionof“FinancialAssetImpairment”.Thecompanycalculatestheexpectedcreditlossofcontractassetsonthebalancesheetdate.Iftheexpectedcreditlossisgreaterthanthebookvalueofthecurrentcontractassetimpairmentprovision,thecompanywillrecognizethedifferenceasanimpairmentlossanddebitthe"creditimpairmentloss".Credited"Contractassetimpairmentprovision".Onthecontrary,thecompanyrecognizesthedifferenceasanimpairmentgainandkeepstheoppositeaccountingrecords.Ifthecompanyactuallyincurscreditlossesanddeterminesthattherelevantcontractassetscannotberecovered,andthewritten-offisapproved,the"contractassetimpairmentreserve"isdebitedandthe"contractedasset"iscreditedbasedontheapprovedwrite-offamount.Ifthewritten-offamountisgreaterthantheprovisionforlossthathasbeenwithdrawn,the"creditimpairmentloss"isdebitedbasedonthedifference.
14.ContractCosts
(1)ThemethodofdeterminingtheamountofassetsrelatedtocontractcostsThecompany’sassetsrelatedtocontractcostsincludecontractperformancecostsandcontractacquisitioncosts.Thecontractperformancecost,thatis,thecostincurredbythecompanyfortheperformanceofthecontract,doesnotfallwithinthescopeofotheraccountingstandardsandmeetsthefollowingconditionsatthesametime,asthecontractperformancecostisrecognizedasanasset:thecostanda
currentorexpectedcontractDirectlyrelated,includingdirectlabor,directmaterials,manufacturingexpenses(orsimilarexpenses),clearlythecostbornebythecustomer,andothercostsincurredonlyduetothecontract;thiscostincreasesthecompany'sfutureresourcesforfulfillingitsperformanceobligations;Thiscostisexpectedtoberecovered.Thecontractacquisitioncost,thatis,theincrementalcostincurredbythecompanytoobtainthecontractisexpectedtoberecovered,andisrecognizedasanassetasthecontractacquisitioncost;iftheassetamortizationperioddoesnotexceedoneyear,itisincludedinthecurrentprofitandlosswhenitoccurs.Incrementalcostreferstothecost(suchassalescommission,etc.)thatthecompanywillnotincurwithoutobtainingthecontract.Thecompany'sexpensesincurredinobtainingthecontract,otherthantheexpectedincrementalcostthatcanberecovered(suchastravelexpensesincurredregardlessofwhetherthecontractisobtained,etc.),areincludedinthecurrentprofitandlosswhentheyareincurred,butitisclearlybornebythecustomerexcept.
(2)AmortizationofassetsrelatedtocontractcostsThecompany’sassetsrelatedtocontractcostsareamortizedonthesamebasisasthecommodityrevenuerecognitionrelatedtotheassetandincludedinthecurrentprofitandloss.
(3)ImpairmentofassetsrelatedtocontractcostsWhenthecompanydeterminestheimpairmentlossofassetsrelatedtocontractcosts,itfirstdeterminestheimpairmentlossofotherassetsrelatedtothecontractthatareconfirmedinaccordancewithotherrelevantbusinessaccountingstandards;then,basedontheirbookvaluehigherthanthecompany’stransferandIfthedifferencebetweentheremainingconsiderationthattheasset-relatedcommodityisexpectedtoobtainandtheestimatedcostincurredforthetransferoftherelevantcommodity,theexcessshallbeprovidedforimpairmentandrecognizedasanassetimpairmentloss.Ifthedepreciationfactorsofthepreviousperiodhavechanged,andtheaforementioneddifferenceishigherthanthebookvalueoftheasset,theoriginalprovisionforassetimpairmentshallbereversedandincludedinthecurrentprofitandloss,butthebookvalueoftheassetafterthereversalshallnotexceedAssumingnoprovisionforimpairmentismade,thebookvalueoftheassetonthedateofreversal.
15.Long-termEquityInvestmentsSomeofthelong-termequityinvestmentsreferredtobytheCompanyaremainlyforsubsidiaries.Theyrefertothelong-termequityinvestmentsandjointventuresthattheCompanyhascontrol,jointcontrolorsignificantinfluenceovertheinvested,affiliatedenterprises.Forlong-termequityinvestmentsthatthecompanydoesnothavecontrol,jointcontrolorsignificantinfluenceontheinvestedunits,theyareaccountedforasavailable-for-salefinancialassetsorfinancialassetsmeasuredatfairvalueandwhosechangesareincludedintheprofitsandlossesofthecurrentperiodfromJanuary1,2019.iftheyarenon-tradable,thecompanymaychoosetodesignatethemasfinancialassetsmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincomeduringinitialrecognition.pleaserefertonotes4and10"financialassetsandfinancialliabilities"foraccountingpolicies.Jointcontrolreferstothecommoncontrolofthecompanyoveranarrangementaccordingtorelevantagreements,andtherelevantactivitiesofthearrangementcanonlybedecidedaftertheparticipantssharingthecontrolrightshaveagreedunanimously.Significantinfluencereferstothefactthatthecompanyhasthepowertoparticipateinthedecision-makingofthefinancialandoperatingpoliciesoftheinvestedentity,butcannotcontrolorjointlycontroltheformulationofthesepolicieswithotherparties.
(1)DeterminationofinvestmentcostForthelong-termequityinvestmentobtainedfromthemergerofenterprisesunderthesamecontrol,theinitialinvestmentcostofthelong-termequityinvestmentshallbebasedontheshareofthebookvalueoftheshareholders'equityofthemergedpartyintheconsolidatedfinancialstatementsofthefinalcontrollingpartyonthemergerdate.Thedifferencebetweentheinitialinvestmentcostof
long-termequityinvestmentandthecashpaid,thenon-cashassetstransferredandthebookvalueofthedebtsundertaken,andtheadjustmentofcapitalreserve;Ifthecapitalreserveisinsufficienttooffset,theretainedearningsshallbeadjusted.Ifequitysecuritiesareissuedasmergerconsideration,thecapitalreserveshallbeadjustedonthemergerdateaccordingtotheshareofthebookvalueofthemergedparty'sowner'sequityinthefinalcontrollingparty'sconsolidatedfinancialstatementsastheinitialinvestmentcostofthelong-termequityinvestment,andaccordingtothetotalnominalvalueoftheissuedsharesasequity,andthedifferencebetweentheinitialinvestmentcostofthelong-termequityinvestmentandthetotalnominalvalueoftheissuedshares.Ifthecapitalreserveisinsufficienttooffset,theretainedearningsshallbeadjusted.Forthelong-termequityinvestmentobtainedfromthemergerofenterprisesnotunderthesamecontrol,theinitialinvestmentcostofthelong-termequityinvestmentshallbetakenasthemergercostonthepurchasedate.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,thenetprofitof
theinvesteeshallbeconfirmedafteradjustmentbasedonthefairvalueoftheidentifiableassetsoftheinvesteeatthetimeofobtainingtheinvestment.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.
16.InvestmentPropertyTheterm“investmentproperty”referstotherealestateheldforgeneratingrentand/orcapitalappreciation.InvestmentpropertyoftheCompanyincludetherighttouseanylandwhichhasalreadybeenrented;therighttouseanylandwhichisheldandpreparedfortransferafterappreciation;andtherighttouseanybuildingwhichhasalreadybeenrented.Theinitialmeasurementoftheinvestmentpropertyshallbemadeatitscost.SubsequentexpendituresincurredforaninvestmentpropertyisincludedinthecostoftheinvestmentpropertywhenitisprobablethateconomicbenefitsassociatedwiththeinvestmentpropertywillflowtotheCompanyandthecostcanbereliablymeasured,otherwisetheexpenditureisrecognizedinprofitorlossintheperiodinwhichtheyareincurred.TheCompanyshallmakeafollow-upmeasurementtotheinvestmentpropertybyemployingthecostpatternonthedateofthebalancesheet.Anaccrualdepreciationoramortizationshallbemadefortheinvestmentpropertyinthelightoftheaccountingpoliciesoftheuserightofbuildingsorlands.Fordetailsofimpairmenttestmethodandwithdrawalmethodofimpairmentprovisionofinvestmentproperty,pleaserefertoNoteIV.22.“Long-termassetsimpairment”.Whenowner-occupiedrealestateorinventoriesarechangedintoinvestmentpropertyorinvestmentpropertyischangedintoowner-occupiedrealestate,ofwhichbookvaluepriortothechangeshallbetheentryvalueafterthechange.Whenaninvestmentpropertyischangedtoanowner-occupiedrealestate,itwouldbetransferredtofixedassetsorintangibleassetsatthedateofsuchchange.Whenanowner-occupiedrealestateischangedtobeheldtoearnrentalorforcapitalappreciation,thefixedassetorintangibleassetistransferredtoinvestmentpropertyatthedateofsuchchange.Ifthefixedassetorintangibleassetischangedintoinvestmentpropertymeasuredbyadoptingthecostpattern,whosebookvaluepriortothechangeshallbetheentryvalueafterthechange;ifthefixedassetorintangibleassetischangedintoinvestmentpropertymeasuredbyadoptingthefairvaluepattern,whosefairvalueonthedateofsuchchangeshallbetheentryvalueafterthechangeAninvestmentpropertyisderecognizedondisposalorwhentheinvestmentpropertyispermanentlywithdrawnfromuseandnofutureeconomicbenefitsareexpectedfromitsdisposal.Theamountofproceedsonsale,transfer,retirementordamageofaninvestmentpropertylessitscarryingamountandrelatedtaxesandexpensesisrecognizedinprofitorlossintheperiodinwhichitisincurred.
17.FixedAssets
(1)ConditionsforrecognitionoffixedassetsFixedassetsrefertotangibleassetsheldfortheproductionofcommodities,theprovisionofservices,leasingoroperationandmanagement,whoseservicelifeexceedsoneaccountingyear.Fixedassetsarerecognizedonlywhentheeconomicbenefitsassociatedwiththemarelikelytoflowintothecompanyandtheircostscanbereliablymeasured.Fixedassetsareinitiallymeasuredatcost,takingintoaccounttheimpactofexpectedabandonmentcosts.
(2)DepreciationmethodsofeachfixedassetThefixedassetsshouldbewithdrawnanddepreciationbystraight-linedepreciationwithintheusefullifesincethenextmonthwhenthefixedassetsreachtheestimatedavailablestate.Theusefullife,estimatednetsalvageandtheyearlydiscountedrateofeachfixedassetareasfollows:
Categoryoffixedassets
| Categoryoffixedassets | Method | Usefullife(Year) | Expectednetsalvagevalue(%) | Annualdeprecation(%) |
| Housingandbuilding | Straight-linedepreciation | 20-40 | 5-10.00 | 2.25-4.75 |
Machineryequipment
| 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”referstotheexpectedamountthattheCompanymayobtainfromthecurrentdisposalofafixedassetafterdeductingtheexpecteddisposalexpensesattheexpirationofitsexpectedusefullife.
(3)TestingmethodofimpairmentandwithdrawalmethodofprovisionforimpairmentonfixedassetsFordetailsofthetestingmethodofimpairmentandwithdrawmethodofimpairmentprovisionforimpairmentonfixedassets,pleaserefertoNoteIV.22“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.
18.ConstructioninProgressConstructioninprocessismeasuredatactualcost.Actualcostcomprisesconstructioncosts,borrowingcoststhatareeligibleforcapitalizationbeforethefixedassetsbeingreadyfortheirintendedusandotherrelevantcosts.Constructioninprocessistransferredtofixedassetswhentheassetsarereadyfortheirintendeduse.Fordetailsofthetestingmethodofimpairmentandwithdrawmethodofimpairmentprovisiononconstructioninprogress,pleaserefertoNoteIV.22“Long-termassetsimpairment”.
19.BorrowingCostsForincurredborrowingcosts,whichcanbedirectlyattributedtofixedassets,investmentrealestateandinventorythatneedmorethanoneyearofpurchasing,constructionorproductionactivitiestoreachthepresetusableorsellablestatus,shallbecapitalizedwhentheassetexpenditurehasoccurred,theborrowingcostshaveoccurred,andthepurchasing,constructionorproductionactivitiesnecessaryfortheassettoreachthepresetusableorsellablestatushavebegun;Whentheacquisition,constructionorproductionofassetsthatmeetthecapitalizationconditionsreachtheintendedusableorsellablestatus,capitalizationisstopped,andtheborrowingcostsincurredthereafterareincludedintheprofitsandlossesofthecurrentperiod.Ifthereisanabnormalinterruptionintheacquisition,constructionorproductionofassetsthatmeetthecapitalizationconditionsandtheinterruptionlastsformorethan3consecutivemonths,thecapitalizationofborrowingcostswillbesuspendeduntiltheacquisition,constructionorproductionofassetsstartsagain.Theto-be-capitalizedamountofinterestsshallbedeterminedinlightoftheactualinterestsincurredofthespeciallyborrowedloanatthepresentperiodminustheincomeofinterestsearnedontheunusedborrowingloansasadepositinthebankorasatemporaryinvestment;theenterpriseshallcalculateanddeterminetheto-be-capitalizedamountonthegeneralborrowingbymultiplyingtheweightedaverageassetdisbursementofthepartoftheaccumulativeassetdisbursementsminusthegeneralborrowingbythecapitalizationrateofthegeneralborrowingused.Thecapitalizationrateshallbecalculatedanddeterminedinlightoftheweightedaverageinterestrateofthegeneralborrowing.Duringthecapitalizationperiod,theexchangedifferencesofforeigncurrencyspecialloansarefullycapitalized;theexchangedifferencesofforeigncurrencygeneralloansareincludedinthecurrentprofitandloss.
20.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)TestingmethodofimpairmentandwithdrawmethodofimpairmentprovisionofintangibleassetsFordetailsofthetestingmethodofimpairmentandwithdrawmethodofimpairmentprovisiononintangibleassets,seeNotesIV.22“Long-termassetsimpairment”.
21.Long-termDeferredExpensesLong-termdeferredexpensesrefertogeneralexpenseswiththeapportionedperiodoveroneyear(oneyearexcluded)thathaveoccurredbutattributabletothecurrentandfutureperiods.Long-termdeferredexpensesshallbeamortizedaveragelywithinbenefitperiod.
22.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.
23.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.Accordingtoanticipatedaccumulativewelfareunit,theCompanymakesestimatesbyunbiasedandconsistentactuarialassumptionforthedemographicvariablesandfinancialvariables,measurestheobligationsproducedindefinedbenefitplans,anddeterminesthevestingperiod.Onbalancesheetdate,theCompanywilllistallobligationsindefinedbenefitplansaspresentvalueandincludecurrentservicecostsintocurrentprofitsandlosses.Whenterminatinglabourrelationsbeforeexpirationofcontract,orlayoffswithcompensations,andtheCompanycannotterminatethelabourrelationsunilaterallyorreducethedemissionwelfare,remunerationandliabilitiesproducedfromthedemissionwelfareshouldbedeterminedandincludedincurrentprofitsandlosseswhendeterminingthecostsofdemissionwelfareandrecombination.However,demissionwelfarenotfullypaidwithin12monthsafterannualReportingPeriodshouldbehandledthesameasotherlong-termemployees’payrolls.Theinsideemployeeretirementplanistreatedbyadoptingthesameprinciplewiththeabovedismissionwelfare.TheCompanywouldrecordedthesalaryandthesocialsecurityinsurancefeespaidandsoonfromtheemployee’sserviceterminationdatetonormalretirementdateintocurrentprofitsandlosses(dismissionwelfare)undertheconditionthattheymeettherecognitionconditionsofestimatedliabilities.Theotherlong-termwelfarethattheCompanyofferstothestaffs,ifmetwiththesettingdrawingplan,shouldbeaccountingdisposedaccordingtothesettingdrawingplan,whiletherestshouldbedisposedaccordingtothesettingrevenueplan.
24.ProvisionsTheCompanyshouldrecognizetherelatedobligationasaprovisionforliabilitywhentheobligationmeetsthefollowingconditions:(1)Thatobligationisapresentobligationoftheenterprise;(2)Itisprobablethatanoutflowofeconomicbenefitsfromtheenterprisewillberequiredtosettletheobligation;(3)Areliableestimatecanbemadeoftheamountoftheobligation.Onthebalancesheetdate,anenterpriseshalltakeintofullconsiderationoftherisks,uncertainty,timevalueofmoney,andotherfactorspertinenttotheContingenciestomeasuretheprovisionsinaccordancewiththebestestimateofthenecessaryexpensesfortheperformanceofthecurrentobligation.Whenallorsomeoftheexpensesnecessaryfortheliquidationofanprovisionsofanenterpriseisexpectedtobecompensatedbyathirdparty,thecompensationshouldbeseparatelyrecognizedasanassetonlywhenitisvirtuallycertainthatthereimbursementwillbeobtained.Besides,theamountrecognizedforthereimbursementshouldnotexceedthecarryingvalueoftheestimatedliabilities.
25.Revenue
(1)Principlesofrevenuerecognition
Thecompanyhasfulfilledtheperformanceobligationsinthecontract,thatis,whenthecustomerobtainscontroloftherelevantgoodsorservices,revenueisrecognized.Obtainingcontroloverrelatedgoodsorservicesmeansbeingabletoleadtheuseofthegoodsortheprovisionofsuchservicesandobtainalmostalloftheeconomicbenefitsfromit.Onthestartingdateofthecontract,thecompanyevaluatesthecontract,identifieseachindividualperformanceobligationcontainedinthecontract,anddetermineswhethereachindividualperformanceobligationisperformedwithinacertainperiodoftimeoratacertainpointintime.Whenoneofthefollowingconditionsismet,itisaperformanceobligationwithinacertainperiodoftime,otherwise,itisaperformanceobligationatacertainpointintime:
①Thecustomerobtainsandconsumestheeconomicbenefitsbroughtbythecompany'sperformanceatthesametimethecompanyperformsthecontract.②Thecustomercancontroltheproductsunderconstructionduringtheperformanceofthecompany.
③Thegoodsproducedduringtheperformanceofthecompanyhaveirreplaceableuses,andthecompanyhastherighttocollectpaymentsforthecumulativeperformanceofthecontractduringtheentirecontractperiod.Forperformanceobligationsperformedwithinacertainperiodoftime,thecompanyrecognizesrevenueaccordingtotheperformanceprogressduringthatperiod.Whentheperformanceprogresscannotbereasonablydetermined,ifthecostincurredbythecompanyisexpectedtobecompensated,therevenueshallberecognizedaccordingtotheamountofthecostincurreduntiltheperformanceprogresscanbereasonablydetermined.Forperformanceobligationsperformedatacertainpointintime,thecompanyrecognizesrevenueatthepointwhenthecustomerobtainscontroloftherelevantgoodsorservices.Whenjudgingwhetheracustomerhasobtainedcontrolofgoodsorservices,thecompanyconsidersthefollowingsigns:
①Thecompanyenjoysthecurrentrighttoreceivepaymentforthegoodsorservices.
②Thecompanyhastransferredthelegalownershipoftheproducttothecustomer.
③Thecompanyhastransferredthegoodsinkindtothecustomer.
④Thecompanyhastransferredthemainrisksandrewardsoftheownershipoftheproducttothecustomer.
⑤Thecustomerhasacceptedthegoodsorservices.Thecompanyhastransferredgoodsorservicestocustomersandtherighttoreceiveconsiderationislistedascontractassets,andcontractassetsaredevaluedonthebasisofexpectedcreditlosses.Thecompany'sunconditionalrighttocollectconsiderationfromcustomersislistedasreceivables.Thecompany’sobligationtotransfergoodsorservicestocustomersduetotheconsiderationreceivedfromcustomersislistedascontractliabilities.
(2)Principlesofincomemeasurement
①Ifthecontractcontainstwoormoreperformanceobligations,atthebeginningofthecontract,thecompanywillallocatethetransactionpricetoeachindividualperformanceobligationbasedontherelativeproportionofthestand-alonesellingpriceofthegoodsorservicespromisedbyeachindividualperformanceobligation.Revenueismeasuredatthetransactionpriceofeachindividualperformanceobligation.
②Thetransactionpriceistheamountofconsiderationthatthecompanyexpectstobeentitledtoreceiveduetothetransferofgoodsorservicestocustomers,excludingpaymentscollectedonbehalfofthirdpartiesandpaymentsexpectedtobereturnedtocustomers.Thetransactionpriceconfirmedbythecompanydoesnotexceedtheamountatwhichtheaccumulatedconfirmedincomewillmostlikelynotundergoasignificantreversalwhentherelevantuncertaintyiseliminated.Itisexpectedthatthemoneyreturnedtothecustomerwillnotbeincludedinthetransactionpriceasaliability.
③Ifthereisvariableconsiderationinthecontract,suchascashdiscountsandpriceguaranteesinpartofthecontractbetweenthecompanyanditscustomers,thecompanydeterminesthebestestimateofthevariableconsiderationaccordingtotheexpectedvalueorthemostlikelyamount,butincludesthevariableThetransactionpriceoftheconsiderationshallnotexceedtheamountatwhichtheaccumulatedconfirmedincomeisunlikelytobereversedsignificantlywhentherelevant
uncertaintyiseliminated.④Fortheconsiderationpayabletocustomers,thecompanyoffsetsthetransactionpricefromtheconsiderationpayabletocustomers,andoffsetsthecurrentincomeatthetimewhentherelevantincomeisrecognizedandthepayment(orpromisedtopay)thecustomerconsiderationislater,unlesstheconsiderationpayableisforObtainotherclearlydistinguishableproductsfromcustomers.
⑤Forsaleswithasalesreturnclause,whenthecustomerobtainscontroloftherelevantproduct,thecompanyrecognizesrevenuebasedontheamountofconsiderationexpectedtobereceivedduetothetransferoftheproducttothecustomer,andtheexpectedreturnduetothesalesreturnisrecognizedasanestimatedliability;Atthesametime,accordingtotheexpectedbookvalueofthereturnedgoodsatthetimeoftransfer,thebalanceafterdeductingtheestimatedcostofrecoveringthegoods(includingthevalueimpairmentofthereturnedgoods)isrecognizedasanasset,thatis,thereturncostreceivable,accordingtothetransferredgoodsThebookvalueatthetimeofthetransfer,deductingthenetcarry-overcostoftheaforementionedassetcost.Oneachbalancesheetdate,thecompanyre-estimatesthefuturesalesreturnsandre-measurestheaforementionedassetsandliabilities.⑥Ifthereisasignificantfinancingcomponentinthecontract,thecompanyshalldeterminethetransactionpricebasedontheamountpayableincashwhenthecustomerassumescontrolofthegoodsorservices.Usingthediscountratethatdiscountsthenominalamountofthecontractconsiderationintothecurrentcommodityprice,thedifferencebetweenthedeterminedtransactionpriceandtheamountoftheconsiderationpromisedinthecontractisamortizedbytheactualinterestmethodduringthecontractperiod.Onthestartingdateofthecontract,thecompanyexpectsthatthetimebetweenthecustomer'sacquisitionofcontrolofthegoodsorservicesandthecustomer'spaymentofthepricewillnotexceedoneyear,regardlessofthesignificantfinancingcomponentsinthecontract.⑦Accordingtocontractualagreements,legalprovisions,etc.,thecompanyprovidesqualityassurancefortheproductssoldandtheassetsbuilt.Forguarantee-typequalityassurancetoassurecustomersthatthegoodssoldmeettheestablishedstandards,thecompanyconductsaccountingtreatmentinaccordancewith"contingentevents-estimatedliabilities".Fortheservicequalityassurancethatprovidesaseparateserviceinordertoassurecustomersthatthegoodssoldmeettheestablishedstandards,thecompanyregardsitasasingleperformanceobligation,basedonthestand-alonesellingpriceofthequalityassuranceofgoodsandservices.Inarelativeproportion,partofthetransactionpriceisallocatedtoservicequalityassurance,andrevenueisrecognizedwhenthecustomerobtainscontroloftheservice.Whenassessingwhetherthequalityassuranceprovidesaseparateserviceinadditiontoensuringthattheproductssoldmeettheestablishedstandards,thecompanyconsiderswhetherthequalityassuranceisalegalrequirement,thequalityassuranceperiod,andthenatureofthecompany'scommitmenttoperformthetasks.
⑧Whentheconstructioncontractbetweenthecompanyandthecustomerischanged:①Ifthecontractchangeaddsclearlydistinguishableconstructionservicesandcontractprices,andthenewcontractpricereflectsthestand-alonesellingpriceofthenewconstructionservices,thecompanywillThecontractchangeshallbetreatedasaseparatecontractforaccountingtreatment;②Ifthecontractchangedoesnotfallintotheabove-mentionedcircumstance①,andthereisacleardistinctionbetweentheconstructionservicesthathavebeentransferredandtheconstructionservicesthathavenotbeentransferredonthedateofthecontractchange,thecompanyTreatitastheterminationoftheoriginalcontract,andatthesametime,mergetheunfulfilledpartoftheoriginalcontractandthechangedpartofthecontractintoanewcontractforaccountingtreatment;③Ifthecontractchangedoesnotfallintotheabovesituation①,andtheconstructionservicehasbeentransferredonthedateofcontractchangeThereisnocleardistinctionbetweentheconstructionserviceandtheuntransferredconstructionservice.Thecompanyaccountsforthechangedpartofthecontractasacomponentoftheoriginalcontract.Theresultingimpactontherecognizedrevenuewillbeadjustedonthedateofcontractchange.
(3)Specificmethodsofrevenuerecognition
①RevenuerecognizedontimeThecompany'ssalesofhouseholdappliances,electroniccomponents,etc.,belongtotheperformanceobligationperformedatacertainpointintime.Recognitionconditionsforincomefromdomesticsalesofgoodsandoverseasdirectsalesofgoods:
Thecompanyhasdeliveredtheproducttothecustomerinaccordancewiththecontractandthecustomerhasreceivedtheproduct,thepaymenthasbeenrecoveredorthereceiptofpaymenthasbeenobtained,andtherelevanteconomicbenefitsarelikelytoflowin.Themainrisksandrewardshavebeentransferred,andthelegalownershipofthegoodshasbeentransferred.Conditionsforconfirmingtheincomeofexportedgoods:Thecompanyhasdeclaredtheproductsforexportaccordingtothecontract,obtainedthebilloflading,anddeliveredthegoodstothecarrierentrustedbythepurchaser.Thepaymenthasbeenrecoveredorthereceiptofpaymenthasbeenobtainedandrelevanteconomicbenefitsarelikelytoflowin.Themainrisksandrewardsofcommodityownershiphavebeentransferred,andthelegalownershipofcommoditieshasbeentransferred.
②IncomeconfirmedaccordingtotheperformanceprogressThecompany'sbusinesscontractswithcustomersforprojectconstruction,onlineadvertising,operatingleases,etc.areperformanceobligationsperformedwithinacertainperiodoftime,andrevenueisrecognizedaccordingtotheprogressoftheperformance.
26.GovernmentGrants
(1)TypesofgovernmentgrantsGovernmentgrantsrefertomonetaryornon-monetaryassetsobtainedbythecompanyfromthegovernmentforfree(butexcludingthecapitalinvestedbythegovernmentastheowner),whicharemainlydividedintogovernmentgrantsrelatedtoassetsandgovernmentgrantsrelatedtoincome.Ifthegovernmentgrantsareamonetaryasset,itshallbemeasuredaccordingtotheamountreceivedorreceivable.Ifthegovernmentgrantsareanon-monetaryasset,itshallbemeasuredatitsfairvalue;ifitsfairvaluecannotbeobtainedreliably,itshallbemeasuredatitsnominalamount.Governmentgrantsmeasuredinnominalamountsaredirectlyincludedinthecurrentprofitandloss.
(2)AccountingtreatmentmethodofgovernmentgrantsThegovernmentgrantsrelatedtoassetsrefertothegovernmentgrantsobtainedbythecompanyforthepurchaseorconstructionorotherformsoflong-termassets.Thecompany'sasset-relatedgovernmentgrants,offsettingthebookvalueofrelatedassetsorrecognizedasdeferredincome,andrecognizedasdeferredincome,shallbeincludedinthecurrentprofitandlossininstallmentsaccordingtoareasonableandsystematicmethodwithintheusefullifeoftherelevantassets;Governmentgrantsrelatedtoincomerefertogovernmentgrantsobtainedbythecompanyinadditiontogovernmentgrantsrelatedtoassets.Thecompany'sgovernmentgrantsrelatedtoincomeusedtocompensatethecompany'srelatedcostsorlossesinsubsequentperiodsarerecognizedasdeferredincome,andduringtheperiodwhentherelatedcostsorlossesarerecognized,theyareincludedinthecurrentprofitorlossoroffsetrelatedCostexpenseorloss;ifitisusedtocompensatetherelevantcostexpenseorlossincurredbythecompany,itisdirectlyincludedinthecurrentprofitandlossoroffsettherelevantcostexpenseorloss.
(3)ConfirmationtimingofgovernmentgrantsGovernmentgrantsmeasuredinaccordancewiththeamountreceivableareconfirmedwhenthereissolidevidenceattheendoftheperiodthattheycanmeettherelevantconditionsstipulatedbythefinancialsupportpolicyanditisexpectedthatthefinancialsupportfundscanbereceived.Exceptforgovernmentgrantsmeasuredinaccordancewiththereceivableamount,thecompanywillrecognizethesubsidieswhentheyactuallyreceivethesubsidies.
27.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)IncometaxofthecurrentperiodOnthebalancesheetdate,forthecurrentincometaxliabilities(orassets)ofthecurrentperiodaswellasthepartformedduringthepreviousperiod,shouldbemeasuredbytheincometaxofthe
estimatedpayable(returnable)amountwhichbecalculatedaccordingtotheregulationsofthetaxlaw.Theamountoftaxableincomeonwhichthecurrentincometaxexpensesarecalculatediscalculatedaftermakingcorrespondingadjustmentstothecurrentpretaxaccountingprofitsinaccordancewiththerelevanttaxlaws.
(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,thedeferredincometaxassetsandthedeferredincometaxliabilitiesshallbemeasuredatthetaxrateapplicabletotheperiodduringwhichtheassetsareexpectedtoberecoveredortheliabilitiesareexpectedtobesettled.Thecarryingvalueofdeferredincometaxassetsshallbereviewedateachbalancesheetdate.Ifitisunlikelytoobtainsufficienttaxableincometooffsetagainstthebenefitofthedeferredincometaxasset,thecarryingvalueofthedeferredincometaxassetsshallbewrittendown.Anysuchwrite-downshouldbesubsequentlyreversedwhereitbecomesprobablethatsufficienttaxableincomewillbeavailable.
(3)IncometaxexpensesIncometaxexpensesincludecurrentincometaxanddeferredincometax.Therestcurrentincometaxandthedeferredincometaxexpensesorrevenueshouldbeincludedintocurrentgainsandlossesexceptforthecurrentincometaxandthedeferredincometaxrelatedtothetransactionandeventsthatbeconfirmedasothercomprehensiveincomeorbedirectlyincludedintheshareholders’equitywhichshouldbeincludedinothercomprehensiveincomeorshareholders’equityaswellasthecarryingvalueforadjustingthegoodwillofthedeferredincometaxoccursfromthebusinesscombination.
(4)OffsetofincometaxThecurrentincometaxassetsandliabilitiesoftheCompanyshouldbelistedbythewritten-offnetamountwhichintendtoexecutesthenetamountsettlementaswellastheassetsacquiringandliabilitiesliquidationatthesametimewhileownsthelegalrightsofsettlingthenetamount.ThedeferredincometaxassetsandliabilitiesoftheCompanyshouldbelistedaswritten-offnetamountwhenhavingthelegalrightsofsettlingthecurrentincometaxassetsandliabilitiesbynet
amountandthedeferredincometaxandliabilitiesisrelevanttotheincometaxwhichbecollectedfromthesametaxpayingbodiesbythesametaxcollectionandadministrationdepartmentorisrelevanttothedifferenttaxpayingbodiesbutduringeachperiodwhichthereissignificantreverseofthedeferredincomeassetsandliabilitiesinthefutureandamongwhichtheinvolvedtaxpayingbodiesintendtosettlethecurrentincometaxandliabilitiesbynetamountorareatthesametimeacquiretheassetaswellasliquidatetheliabilities.
28.LeasingFinancingleasingvirtuallytransferredthewholerisksandleasingofthecompensationrelatedtotheassetsownershipandtheirownershipmayeventuallybetransferredormaybenot.Otherleasingexceptforthefinancingleasingisoperatingleasing.
(1)BusinessofoperatingleasesrecordedbytheCompanyasthelesseeTherentexpensesfromoperatingleasesshallberecordedbythelesseeintherelevantassetcostsortheprofitsandlossesofthecurrentperiodbyusingthestraight-linemethodovereachperiodoftheleaseterm.Theinitialdirectcostsshallberecognizedastheprofitsandlossesofthecurrentperiod.Thecontingentrentsshallberecordedintotheprofitsandlossesofthecurrentperiodinwhichtheyactuallyarise.
(2)BusinessofoperatingleasesrecordedbytheCompanyasthelessorTherentincomesfromoperatingleasesshallberecognizedastheprofitsandlossesofthecurrentperiodbyusingthestraight-linemethodovereachperiodoftheleaseterm.Theinitialdirectcostsofgreatamountshallbecapitalizedwhenincurred,andberecordedintocurrentprofitsandlossesinaccordancewiththesamebasisforrecognitionofrentincomesoverthewholeleaseterm.Theinitialdirectcostsofsmallamountshallberecordedintocurrentprofitsandlosseswhenincurred.Thecontingentrentsshallberecordedintotheprofitsandlossesofthecurrentperiodinwhichtheyactuallyarise.
(3)BusinessoffinanceleasesrecordedbytheCompanyasthelesseeOntheleasebeginningdate,theCompanyshallrecordtheloweroneofthefairvalueoftheleasedassetandthepresentvalueoftheminimumleasepaymentsontheleasebeginningdateastheenteringvalueinanaccount,recognizetheamountoftheminimumleasepaymentsastheenteringvalueinanaccountoflong-termaccountpayable,andtreatthebalancebetweentherecordedamountoftheleasedassetandthelong-termaccountpayableasunrecognizedfinancingcharges.Besides,theinitialdirectcostsdirectlyattributabletotheleaseditemincurredduringtheprocessofleasenegotiatingandsigningtheleasingagreementshallberecordedintheassetvalueofthecurrentperiod.Thebalancethroughdeductingunrecognizedfinancingchargesfromtheminimumleasepaymentsshallberespectivelystatedinlong-termliabilitiesandlong-termliabilitiesduewithin1year.Unrecognizedfinancingchargesshallbeadoptedbytheeffectiveinterestratemethodintheleaseterm,soastocalculateandrecognizecurrentfinancingcharges.Thecontingentrentsshallberecordedintotheprofitsandlossesofthecurrentperiodinwhichtheyactuallyarise.
(4)BusinessoffinanceleasesrecordedbytheCompanyasthelessorOnthebeginningdateoftheleaseterm,theCompanyshallrecognizethesumoftheminimumleasereceiptsontheleasebeginningdateandtheinitialdirectcostsastheenteringvalueinanaccountofthefinancingleasevaluesreceivable,andrecordtheunguaranteedresidualvalueatthesametime.Thebalancebetweenthesumoftheminimumleasereceipts,theinitialdirectcostsandtheunguaranteedresidualvalueandthesumoftheirpresentvaluesshallberecognizedasunrealizedfinancingincome.Thebalancethroughdeductingunrealizedfinancingincomesfromthefinanceleaseaccountsreceivableshallberespectivelystatedinlong-termclaimsandlong-termclaimsduewithin1year.Unrecognizedfinancingincomesshallbeadoptedbytheeffectiveinterestratemethodintheleaseterm,soastocalculateandrecognizecurrentfinancingrevenues.Thecontingentrentsshallberecordedintotheprofitsandlossesofthecurrentperiodinwhichtheyactuallyarise.
29.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.
30.ChangesinMainAccountingPoliciesandEstimates
(1)ChangesofaccountingpoliciesIn2017,theMinistryofFinanceissuedtherevised"AccountingStandardsforBusinessEnterprisesNo.14-Revenue"(referredtoasthe"NewRevenueStandards").ThecompanywillbeginaccountingtreatmentinaccordancewiththenewlyrevisedstandardsfromJanuary1,2020.Accordingtotheconvergenceregulations,thecomparableperiodinformationwillnotbeadjusted.Thedifferencebetweentheimplementationofthenewstandardsandthecurrentstandardsonthefirstdaywillbeadjustedretrospectively.UnallocatedatthebeginningofthereportingperiodProfitorothercomprehensiveincome.Thenewrevenuestandardestablishesanewrevenuerecognitionmodelforregulatingrevenuegeneratedfromcontractswithcustomers.Inordertoimplementthenewrevenuestandards,thecompanyreassessedtherecognitionandmeasurement,accountingandpresentationofmaincontractrevenue.Accordingtothenewrevenuestandard,thecompanychoosestoadjustonlythecumulativeimpactofcontractsthathavenotbeencompletedonJanuary1,2020,andforcontractchangesthatoccurbeforethebeginningoftheearliestcomparableperiod(ie,January1,2020)Simplifiedprocessing,thatis,accordingtothefinalarrangementofthecontractchange,identifythefulfilledandunfulfilledperformanceobligations,determinethetransactionprice,andallocatethetransactionpricebetweenthefulfilledandunfulfilledperformanceobligations.Thecumulativeimpactamountofthefirstimplementationadjuststheamountofretainedearningsandotherrelateditemsinthefinancialstatementsatthebeginningofthefirstimplementationperiod(ieJanuary1,2020).The2019financialstatementshavenotbeenrestated.Themainchangesandimpactsoftheimplementationofthenewrevenuestandardonthecompanyareasfollows:
Thecompanyreclassifiedthecontractconsiderationreceivedfromcustomersinadvanceduetothetransferofgoodsfromtheitemof"Accountsreceivedinadvance"totheitemof"Contractliabilities"(orothernon-currentliabilities).Someofthecompany'sreceivablesdonotmeettheconditionsforunconditional(thatis,only
dependentonthepassageoftime)tocollectconsiderationfromcustomers,andthecompanyreclassifiesthemas"contractassets"(or"othernon-currentassets");Thecompanyreclassifiesthewarrantyreceivablesthathavenotreachedthecollectionperiodas"contractassets"(or"othernon-currentassets")forpresentation.TheimpactoftheimplementationofthenewrevenuestandardonInfluenceonconsolidatedandtheCompany’sfinancialstatementsisasfollows:
Item
| Item | 31December2019(beforeadjustment) | 1January2020(afteradjustment) | ||
| Consolidated | TheCompanyastheparent | Consolidated | TheCompanyastheparent | |
| Accountsreceivable | 4,416,179,657.87 | 9,564,720,940.39 | 4,419,658,123.40 | 9,580,894,472.00 |
| Contractassets | 26,655,842.40 | |||
| Inventories | 5,318,503,044.69 | 218,644,308.47 | 5,293,903,309.81 | 207,949,690.07 |
| Othercurrentassets | 2,093,212,552.25 | 1,096,689,897.40 | 2,104,218,156.06 | 1,107,384,515.80 |
| Othernon-currentassets | 1,172,472,723.85 | 1,172,659,348.26 | ||
| Contractliabilities | 959,538,151.80 | 269,891,156.62 | ||
| Advancesfromcustomers | 1,076,856,387.08 | 318,839,961.84 | ||
| Otherpayables | 2,374,287,243.20 | 3,193,392,734.69 | 2,289,729,308.18 | 3,181,261,535.24 |
| Provisions | 206,591.51 | 206,591.51 | 101,491,327.80 | 28,511,322.57 |
| Othernon-currentliabilities | 117,318,235.28 | 48,948,805.22 | ||
| Retainedearnings | 4,239,763,606.89 | 2,245,698,875.22 | 4,239,763,606.89 | 2,245,698,875.22 |
| Surplusreserves | 1,211,721,109.67 | 1,227,564,785.19 | 1,211,721,109.67 | 1,227,564,785.19 |
(2)ChangeofaccountingestimatesTherewasnoanychangeofaccountingestimateoftheCompanyintheReportingPeriod.
31.CriticalAccountingJudgmentsandEstimatesDuetotheinsideuncertaintyofoperatingactivity,theCompanyneededtomakejudgments,estimatesandassumptiononthecarryingvalueoftheaccountswithoutaccuratemeasurementduringtheemploymentofaccountingpolicies.Andthesejudgments,estimatesandassumptionweremadebasingonthepriorexperienceoftheseniorexecutivesoftheCompany,aswellasinconsiderationofotherfactors.Thesejudgments,estimatesandassumptionwouldalsoaffectthereportamountofincome,costs,assetsandliabilities,aswellasthedisclosureofcontingentliabilitiesonbalancesheetdate.However,theuncertaintyoftheseestimateswaslikelytocausesignificantadjustmentonthecarryingvalueoftheaffectedassetsandliabilities.TheCompanywouldcheckperiodicallytheabovejudgments,estimatesandassumptiononthebasisofcontinuingoperation.Forthechangesinaccountingestimatesonlyaffectedonthecurrentperiod,
theinfluenceshouldberecognizedattheperiodofchangeoccurred;forthechangesinaccountingestimatesaffectedthecurrentperiodandalsothefutureperiod,theinfluenceshouldberecognizedattheperiodofchangeoccurredandfutureperiod.Onthebalancesheetdate,theCompanyneededtomakejudgments,estimatesandassumptionontheaccountsinthefollowingimportantitems:
(1)RevenueRecognition①Primarilyresponsibleperson/agentWhenthecompanyjudgeswhetherthetransferofgoodsorservicestocustomersisthemainresponsiblepersonortheagent,itismainlybasedonthenatureoftheperformanceobligationtodeterminewhetherthecompany'sidentityinacertaintransactionisthemainresponsiblepersonortheagent.Thecompanypromisestoprovideproductstocustomersonitsown.Beforetransferringtheproductstocustomers,ifthecompanycancontroltheproducts,thecompanyisthemainresponsibleperson;ifthecompanyarrangesforotherstoprovidespecificproducts,itistoprovideassistancetoothers.Theidentityistheagent.Thecompany'sownprovisionofspecificproductstocustomersincludesentrustinganotherparty(includingsubcontractors)toprovidespecificproductsontheirbehalf,andthecompanythatcancontroltheproductsisthemainresponsibleperson.Whenthecompanyjudgeswhetheritalreadyhastherighttocontrolaspecificproductbeforetransferringittoacustomer,itisnotlimitedtothelegalformofthecontract,andwillcomprehensivelyconsiderallrelevantfactsandcircumstancestomakethejudgment.Thesefactsandcircumstancesincludebutarenotlimitedto:
①Thecompanyassumesthemainresponsibilityfortransferringgoodstocustomers.Themainresponsibilityincludestakingresponsibilityfortheacceptabilityofspecificcommodities.②Thecompanyassumedtheinventoryriskofthegoodsbeforeorafterthetransferofthegoods.Thecompanyhaspurchasedorpromisedtopurchasespecificproductsbeforeenteringintocontractswithcustomers,andiscapableofleadingtheuseofspecificproductsandobtainingalmostalleconomicbenefitsfromit.③Thecompanyhastherighttoindependentlydeterminethepricesofcommoditiestraded.
②SalesdiscountWhenthecompanyconfirmstheincomefromthesalesofgoods,itestimatestherelevantexpensesinaccordancewiththerelevantprovisionsofthecompany'ssalesagreement,accruessalesdiscountstocustomers,andatthesametimeoffsetsthesalesincomeofgoods.
③QualityAssuranceBasedoncontractterms,currentknowledgeandhistoricalexperience,thecompanyestimatesandmakescorrespondingpreparationsforproductqualityassuranceandothermatters.Whenthesecontingenteventshaveformedacurrentobligation,andtheperformanceofthesecurrentobligationsislikelytocauseeconomicbenefitstoflowoutofthecompany,thecompany'sbestestimateofthecontingenteventsrequiredtoperformtherelevantcurrentobligationsRecognizedasestimatedliabilities.Therecognitionandmeasurementofestimatedliabilitiesdependtoalargeextentonthejudgmentofmanagement.Intheprocessofmakingjudgments,thecompanyneedstoevaluatetherisks,uncertaintiesandotherfactorsrelatedtothesecontingencies.Forcontractcombinationswithsimilarcharacteristics,thecompanywillmakeareasonableestimateofthewarrantyratebasedonhistoricalwarrantydata,currentwarrantyconditions,andafterconsideringallrelevantinformationsuchasproductimprovementsandmarketchanges.Thecompanyre-evaluatesthewarrantyrateatleastoneachbalancesheetdateanddeterminestheestimatedliabilitiesbasedonthere-evaluatedwarrantyrate.
(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,whichshouldbesubjectedtoimpairmenttestwhentherewasindicationofimpairmentindicatedthatthecarryingvaluecan’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.TheservicelifewasfixedbytheCompanyinaccordancewiththepreviousexperienceofthesimilarassetsandtheexpected
technicalupdate.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.Therecognitionandmeasurementofprovisionswereheavilyreliedonthejudgmentofthemanagementteam.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
| Categoryoftaxes | Basis | Specificsituationofthetaxesrate |
| VAT | CalculatedtheoutputtaxatthetaxrateandpaidtheVATbytheamountafterdeductingthedeductiblewithholdingVATatcurrentperiod,ofwhichtheVATapplicabletoeasycollectionwon’tbelongtothedeductiblewithholdingVAT. | 3%、5%、6%、9%、13% |
| Urbanmaintenanceandconstructiontax | Thecirculatingtaxactuallypaid | Paidat7%ofthecirculatingtaxactuallypaid,ofwhichDongguanPacking,DongguanKonka,BoluoKonka,BoluoKonkaPrecision,ChengduAnren,XingDaHongYe,DongguanKonkaInvestment,XinfengMicrocrystalline,BinzhouWeiyijie,BeihaiJingmai,BinzhouEcon,SuiningPengxiKangrunEnvironmentManagementCo.,Ltd.,DayiKangrunWaterCo.,Ltd.,LushanKangrunEnvironmental,FunanKangrunWater,TingyuanEnvironmental,YibinKangrunandNingboKanghanruiElectricalAppliancesof5%ofactuallypaidturnover.SubeiMongolAutonomousCountyKangrunWaterCo.,Ltd.paidbyhalfafterpaidof5%,andJiangxiKonkaandNanoCrystallizedGlassof1%. |
| Educationsurtax | Thecirculatingtaxactuallypaid | 3% |
| Localeducationsurtax | Thecirculatingtaxactuallypaid | ThesubsidiaryWuhanRunyuanSewage:1.5%andothercompanies:2% |
| Enterpriseincometax | Taxableincome | 25%/seenote(2)fordetails |
Note:(1)AccordingtoregulationsofTemporaryProvisionsofIncomeTaxofTrans-boundaryTaxPaymentEnterprisesbyStateAdministrationofTaxation,residententerpriseswithoutbusinessestablishmentorplacesoflegalpersonsshouldbetaxpaymententerpriseswiththeadministrativemeasuresofincometaxof“unifiedcomputing,level-to-leveladministration,localprepayment,liquidationsummary,andfinancetransfer”.Itcameintoforcefrom1January2008.Accordingtotheabovemethods,theCompany’ssalesbranchcompaniesineachareawillhandinthecorporateincometaxesinadvancefrom1January2008andwillbefinalsettleduniformlybytheCompanyattheyear-end.
(2)Themaintaxpayersofdifferentcorporateincometaxratesareexplainedasfollows:
| Nameofentity | Incometaxrate |
| ElectronicsTechnology,AnhuiKonka,XingDaHongYe,E2info,XinfengMicrocrystalline,SichuanKonka,BoluoKonkaPrecision | 15% |
| HongKongKonka,KonkaElectricalAppliancesInternationalTrading,JialiInternational,Kangjietong,JiaxinTechnology,JiaxinTechnology,KonkaElectricalAppliancesInvestment,KonkaSmartTech,KonkaMobility | 16.5% |
| ChainKingdomMemoryTechnologies | 8.25%/16.5% |
| KonkaEurope | 15% |
| ChongqingKangxingrui | 15% |
| KanghaoTechnology | 22.5% |
2.TaxPreferenceandApprovedDocuments
(1)AccordingtoCaishui[2019]No.13:Noticeontheimplementationoftheinclusivetaxreductionandexemptionpolicyforsmallandmicroenterprises,fromJanuary1,2019toDecember31,2021,theannualtaxableincomeofsmallandprofitableenterprisesisnotTheportionexceeding1millionyuanwillbereducedto25%ofthetaxableincome,andthecorporateincometaxwillbepaidattherateof20%;theportionoftheannualtaxableincomeexceeding1millionyuanbutnotexceeding3millionyuanwillbereducedby50%Includethetaxableincomeandpaycorporateincometaxatarateof20%.
(2)On16October2018,ShenzhenE2infoNetworkTechnologyCo.,Ltd.,thesubsidiaryofthisCompanyobtainedthehigh-techenterprisecertificate(certificateNo.:GR201844201969)jointlyissuedbyShenzhenTechnologyInnovationCommittee,FinanceCommitteeofShenzhenMunicipality,ShenzhenTaxationBureauofSATwithavalidperiodofthreeyears.Accordingtorelatedtaxationregulations,thecompanyenjoysrelatedtaxationpreferentialpoliciesasahigh-techenterprisefrom2018to2020andpaystheenterpriseincometaxasperthepreferentialtaxrateof15%.
(3)On28November2018,theCompany’ssubsidiaryXingDaHongYereceivedtheHigh-techEnterpriseCertificate(No.GR201844008446withthe3-yearperiodofvalidity)jointlyissuedbyDepartmentofScienceandTechnologyofGuangdongProvince,DepartmentofFinanceofGuangdongProvinceandStateAdministrationofTaxation(GuangdongProvincialTaxService).Accordingtorelevanttaxregulations,from2018to2020,theenterpriseshallbeeligibleforenjoyingrelevantpreferentialtaxpoliciesasanewhigh-techenterpriseandcorrespondingcorporateincometaxshallbepaidbasedonthepreferentialtaxrateof15%.
(4)On9September2019,AnhuiKonka,thesubsidiaryoftheCompany,obtainedacertificateofhigh-techenterprisejointlyissuedbyAnhuiScienceandTechnologyDepartment,AnhuiProvincialDepartmentofFinanceandAnhuiProvincialTaxBureauoftheStateAdministrationofTaxation.ThecertificatenumberisGR201934000966andisvalidforthreeyears.Accordingtorelevanttaxregulations,AnhuiKonkashallenjoyrelevantpreferentialtaxpoliciesforhigh-techenterprisesforthreeconsecutiveyearsfrom2019to2021andpaytheenterpriseincometaxatapreferentialtaxrateof15%.
(5)On16September2019,XinfengMicrocrystalline,thesubsidiaryoftheCompany,obtainedahigh-techenterprisecertificatejointlyissuedbyJiangxiScienceandTechnologyDepartment,JiangxiProvincialDepartmentofFinanceandJiangxiProvincialTaxBureauoftheStateAdministrationofTaxation.ThecertificatenumberisGR201936000744andisvalidforthreeyears.Accordingtorelevanttaxregulations,XinfengMicrocrystallineshallenjoyrelevantpreferentialtaxpoliciesforhigh-techenterprisesforthreeconsecutiveyearsfrom2019to2021andpaytheenterpriseincome
taxatapreferentialtaxrateof15%.
(6)On28November2019,SichuanKonka,asubsidiaryoftheCompany,obtainedacertificateofhigh-techenterprisejointlyissuedbySichuanScienceandTechnologyDepartment,SichuanProvincialDepartmentofFinanceandSichuanProvincialTaxBureauoftheStateAdministrationofTaxation.ThecertificatenumberisGR201951002096andisvalidforthreeyears.Accordingtorelevanttaxregulations,SichuanKonkashallenjoyrelevantpreferentialtaxpoliciesforhigh-techenterprisesforthreeconsecutiveyearsfrom2019to2021andpaytheenterpriseincometaxatapreferentialtaxrateof15%.
(7)On2December2019,BokangPrecision,asubsidiaryoftheCompany,obtainedthehigh-techenterprisecertificatejointlyissuedbytheGuangdongProvincialDepartmentofScienceandTechnology,theGuangdongProvincialDepartmentofFinance,theGuangdongStateTaxationBureau,andtheGuangdongLocalTaxationBureau.ThecertificatenumberisGRGR201944007820,validforthreeyears,accordingtorelevanttaxregulations,BokangPrecisionhasenjoyedrelevantpreferentialtaxpoliciesforhigh-techenterprisesforthreeconsecutiveyearsfrom2019to2021,andissubjecttocorporateincometaxatapreferentialtaxrateof15%.
(8)On9December2019,ElectronicsTechnology,thesubsidiaryoftheCompany,obtainedaCertificateofHigh-techEnterprisejointlyissuedbyShenzhenScienceandTechnologyDepartment,ShenzhenProvincialDepartmentofFinanceandShenzhenProvincialTaxBureauoftheStateAdministrationofTaxation.ThecertificatenumberisGR201944204287andisvalidforthreeyears.Accordingtorelevanttaxregulations,ElectronicsTechnologyshallenjoyrelevantpreferentialtaxpoliciesforhigh-techenterprisesforthreeconsecutiveyearsfrom2019to2021andpaytheenterpriseincometaxatapreferentialtaxrateof15%.
(9)AccordingtotheNoticeonIssuesConcerningthePromotionofEnergy-SavingServiceIndustryDevelopmentVATBusinessTaxandCorporateIncomeTaxPolicyIssuedbytheMinistryofFinanceandtheStateAdministrationofTaxation(Caishui[2010]No.110)Fortheincome,theenterpriseenjoysthe"threeexemptionsandthreehalves"preferentialtreatmentofcorporateincometaxsincethetaxyearinwhichthefirstproductionandoperationincomeoftheprojectisobtained.BinhaiSewage,LairunHoldingsandRushanYike,subsidiariesoftheCompany,enjoythistaxincentive.BinhaiSewagewillbeexemptfromcorporateincometaxfrom1March2017to29February2020,andcorporateincometaxwillbeleviedathalfthe25%legaltaxratefrom1March2020to28February2023;LairunHoldingsisexemptfromcorporateincometaxfrom1September2017to31August2020.From1September2020to31August2023,corporateincometaxisleviedinhalfatthelegaltaxrateof25%;RushanYikewillbeexemptfromcorporateincometaxfrom1May2019to30April2022,andcorporateincometaxwillbeleviedathalfthe25%legaltaxratefrom1May2022to30April2025.
(10)AccordingtothedocumentCaishui[2013]No.37issuedbytheMinistryofFinanceandtheStateAdministrationofTaxation,thegeneraltaxpayersamongthepilottaxpayersapprovedbythePeople'sBankofChina,theCBRCandtheMinistryofCommercetooperatefinancialleasingbusinessshallprovidetangiblemovablepropertyfinancialleasingservices,andtheVATrefundpolicyshallbeappliedtothepartwheretheactualVATtaxburdenexceeds3%.KonkaLeasing,thesubsidiaryoftheCompany,shallbequalifiedtoenjoythetaxconcession.
(11)Accordingtothefiscalandtaxationdocument[2011]No.100publishedbytheMinistryofFinanceandtheStateAdministrationofTaxation,fortheVATgeneraltaxpayerswhoselltheirself-developedandproducedsoftwareproducts,theVATshallbeleviedattherateof13%,andthenthepartthattheactualtaxburdenontheirVATexceeds3willbeimplementedwiththepolicyofimmediatewithdrawal.TheCompany’ssubsidiaries,WankaidaTechnology,YouzhihuiandElectronicsTechnologyallenjoythispreferentialpolicy.
(12)AccordingtotheregulationsoftheSpecialCatalogueofVATConcessionsforProductsandLaborswithComprehensiveUtilizationofResourcesissuedbytheMinistryofFinanceandtheStateAdministrationofTaxation(FinanceandTaxation[2015]No.78),thewastewatertreatmentbusinessoperatedbyLairunHoldingsandBinhaiSewage,subsidiariesoftheCompany,belongstothethiscatalogue.ThenafterithasbeenleviedtheVATatarateof13%,theactualtaxburdenonthewastewatertreatmentincometaxwillberefundedinaccordancewiththe70%oftheactualtaxburden,andtheactualtaxburdenontherenewablewaterincomeVATwillberefundedimmediatelyat50%.
(13)AccordingtotheNoticeonTaxPolicyIssuesconcerningFurtherImplementingtheWesternChinaDevelopmentStrategy(CS[2011]No.58)oftheMinistryofFinance,theGeneralAdministrationofCustomsandtheStateAdministrationofTaxation,enterprisesthatengageinindustriesthatarelistedin“EncouragedIndustriesCataloguefortheWesternRegions”areentitledtoapreferentialcorporateincometaxrateof15%from1January2011till31December2020.TheCompany’ssubsidiaryChongqingKangxingruiisentitledtothepreferentialpolicy.VINotesonMajorItemsinConsolidatedFinancialStatementsoftheCompanyUnlessotherwisenoted,thefollowingannotationproject(includingthemainprojects,annotationofthefinancialstatementoftheCompany),theperiod-beginrefersto1January2020,theperiod-endrefersto30June2020,thisperiodreferstotheperiodfrom1January2020to30June2020andthelastperiodreferstotheperiodfrom1January2019to30June2019.Themonetaryunitisrenminbi.
1.MonetaryAssets
Item
| Item | Endingbalance | Beginningbalance |
| Cashonhand | 21,245.91 | 18,699.99 |
Item
| Item | Endingbalance | Beginningbalance |
| Bankdeposits | 4,537,884,573.39 | 4,493,683,217.23 |
| Othermonetaryassets | 1,879,566,516.43 | 2,105,658,134.39 |
| Total | 6,417,472,335.73 | 6,599,360,051.61 |
| Ofwhich:Totalamountdepositedinoverseas | 203,830,131.11 | 378,330,661.32 |
Notes:?Theendingbalanceofothermonetaryassetswasthedepositsofeachmargindepositnotwithdrawnatanytime.RefertoNoteVI-61.Assetswithrestrictedownershiporuserightfordetails.?Asof30June2020,themonetaryassetsdepositedinoverseasbytheCompanywasRMB203,830,131.11(RMB378,330,661.32on31December2019).
2.Held-for-tradingFinancialAssets
| Item | Endingbalance | Beginningbalance |
| Financialassetsatfairvaluethroughprofitorloss | ||
| Including:debtinstrumentinvestment | - | |
| Equityinstrumentinvestment | - | 61,494,666.97 |
| Other | - | |
| Total | - | 61,494,666.97 |
3.NotesReceivable
(1)NotesReceivableListedbyCategory
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebill | 1,634,811,363.44 | 2,638,629,011.87 |
| Commercialacceptancebill | 156,020,519.54 | 199,412,421.02 |
| Total | 1,790,831,882.98 | 2,838,041,432.89 |
(2)NotesReceivablePledgedbytheCompanyattheperiod-end
| Item | Amount |
| Bankacceptancebill | 1,429,985,596.82 |
| Total | 1,429,985,596.82 |
(3)NotesReceivablewhichHadEndorsedbytheCompanyorhadDiscountedandhadnotDueontheBalanceSheetDateatthePeriod-end
| Item | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bankacceptancebill | 1,147,221,514.48 |
Item
| Item | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Commercialacceptancebill | 13,041,483.52 | |
| Total | 1,160,262,998.00 |
(4)NotesTransferredtoAccountsReceivablebecauseDraweroftheNotesFailedtoExecutetheContractorAgreement
| Item | Amountofthenotestransferredtoaccountsreceivableattheperiod-end |
| Bankacceptancebill | 200,000,000.00 |
| Commercialacceptancebill | 743,240,011.25 |
| Total | 943,240,011.25 |
Note:Attheendoftheperiod,thebillstransferredtotheaccountsreceivableduetotheissuer’sfailuretoperformweretheoverduebillsofthecompany'sfactoringbusiness.
(5)ListedbyWithdrawalMethodsforBadDebtProvision
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Notesreceivablewithsignificantindividualamountandmakeindependentprovisionforexpectedcreditloss | |||||
| Notesreceivablewithdrawnexpectedcreditlossaccordingtocreditriskscharacteristics | 1,794,246,554.15 | 100.00 | 3,414,671.17 | 0.19 | 1,790,831,882.98 |
| Ofwhich:Bankacceptancebill | 1,634,811,363.44 | 91.11 | 1,634,811,363.44 | ||
| Commercialacceptancebill | 159,435,190.71 | 8.89 | 3,414,671.17 | 2.14 | 156,020,519.54 |
| Notesreceivablewithinsignificantsingleamountforwhichexpectedcreditlossprovisionseparatelyaccrued | |||||
| Total | 1,794,246,554.15 | 100.00 | 3,414,671.17 | 0.19 | 1,790,831,882.98 |
(Continued)
| Category | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
Category
| Category | Beginningbalance | ||||
| 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 |
| Notesreceivablewithinsignificantsingleamountforwhichexpectedcreditlossprovisionseparatelyaccrued | |||||
| Total | 2,842,347,510.24 | 100.00 | 4,306,077.35 | 0.15 | 2,838,041,432.89 |
(6)Baddebtprovisionfornotesreceivablewithdrawn,collectedorreversedduringtheReportingPeriod
| Category | Beginningbalance | Changedamount | Endingbalance | ||
| Withdrawn | Recoveredorreversed | Write-off | |||
| Commercialacceptancebill | 4,306,077.35 | 32,729.86 | 924,136.04 | 0.00 | 3,414,671.17 |
| Total | 4,306,077.35 | 32,729.86 | 924,136.04 | 0.00 | 3,414,671.17 |
4.AccountsReceivable
(1)ListedbyWithdrawalMethodsforExpectedCreditLoss
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Accountsreceivable,forwhichtheindependentprovisionforexpectedcreditlosses | 1,092,794,983.95 | 16.85 | 385,634,035.82 | 35.29 | 707,160,948.13 |
| Accountsreceivable,forwhichtheprovisionforexpectedcreditlosseswaswithdrawnaccordingtogroups | |||||
Category
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Including:Aginggroup | 3,783,478,326.31 | 58.32 | 252,530,805.77 | 6.67 | 3,530,947,520.54 |
| Projectpaymentgroup | 1,611,063,500.13 | 24.83 | 125,995,129.33 | 7.82 | 1,485,068,370.80 |
| Subtotalofgroups | 5,394,541,826.44 | 83.15 | 378,525,935.10 | 7.02 | 5,016,015,891.34 |
| Total | 6,487,336,810.39 | 100.00 | 764,159,970.92 | 11.78 | 5,723,176,839.47 |
(Continued)
| Category | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Accountsreceivable,forwhichtheindependentprovisionforexpectedcreditlosses | 1,093,505,612.71 | 21.24 | 384,089,197.98 | 35.12 | 709,416,414.73 |
| Accountsreceivable,forwhichtheprovisionforexpectedcreditlosseswaswithdrawnaccordingtogroups | 0 | ||||
| Including:Aginggroup | 2,820,178,866.87 | 54.78 | 236,910,263.28 | 8.40 | 2,583,268,603.59 |
| Projectpaymentgroup | 1,234,413,460.00 | 23.98 | 107,440,354.92 | 8.70 | 1,126,973,105.08 |
| Subtotalofgroups | 4,054,592,326.87 | 78.76 | 344,350,618.20 | 8.49 | 3,710,241,708.67 |
| Total | 5,148,097,939.58 | 100.00 | 728,439,816.18 | 14.15 | 4,419,658,123.40 |
1)Accountsreceivable,forwhich,theindependentprovisionforexpectedcreditlossismadeattheperiod-end
| Name | Endingbalance | |||
| Carryingamount | Baddebtprovision | Withdrawalpercentage(%) | Withdrawalreason | |
| ShanghaiHuaxinInternationalGroupCo.,Ltd | 300,018,021.01 | 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 |
Name
| Name | Endingbalance | |||
| Carryingamount | Baddebtprovision | Withdrawalpercentage(%) | Withdrawalreason | |
| ChinaNuclearEngineeringConstructionGroupCo.,Ltd | 78,000,690.24 | 7,890,069.02 | 10.12 | 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 | 44,395,169.38 | 44,395,169.38 | 100.00 | Difficultyinworkingcapitalturnover |
| H-BUSTERDOBRASILINDUSTRIA | 19,470,841.75 | 19,470,841.75 | 100.00 | Difficulttorecoverforbankruptcy |
| TreeviewBusinessRegistration | 11,262,555.50 | 11,262,555.50 | 100.00 | Difficultyinworkingcapitalturnover |
| Other | 74,426,406.07 | 68,318,260.25 | 91.79 | |
| Total | 1,092,794,983.95 | 385,634,035.82 | 35.29 | |
2)Withdrawingexpectedcreditlossbygroups①Inthegroup,accountsreceivable,forwhich,theprovisionforexpectedcreditlosswasmadeaccordingtoaginggroups
| Aging | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion(%) | |
| Within1year | 3,433,378,810.01 | 69,697,589.85 | 2.03 |
| 1to2years | 148,044,952.56 | 10,910,913.00 | 7.37 |
| 2to3years | 37,878,125.72 | 8,390,004.85 | 22.15 |
| 3to4years | 1,773,024.89 | 1,128,884.94 | 63.67 |
| Over4years | 162,403,413.13 | 162,403,413.13 | 100.00 |
| Total | 3,783,478,326.31 | 252,530,805.77 | 6.67 |
②Inthegroup,accountsreceivable,forwhich,theprovisionforexpectedcreditlosswasmadeaccordingtoprojectpaymentgroups
| Aging | Endingbalance |
Carryingamount
| Carryingamount | Baddebtprovision | Withdrawalproportion(%) | |
| Within1year | 1,326,749,598.38 | 66,337,479.88 | 5.00 |
| 1to2years | 153,209,883.34 | 15,320,988.33 | 10.00 |
| 2to3years | 120,455,177.55 | 36,136,553.27 | 30.00 |
| 3to4years | 1,063,216.15 | 531,608.08 | 50.00 |
| Over4years | 9,585,624.71 | 7,668,499.77 | 80.00 |
| Total | 1,611,063,500.13 | 125,995,129.33 | 7.82 |
(2)AccountsReceivableListedbyAging
| Aging | Endingbalance |
| Within1year | 4,962,384,670.27 |
| 1to2years | 1,129,432,545.44 |
| 2to3years | 175,545,928.13 |
| 3to4years | 4,363,699.75 |
| Over4years | 215,609,966.80 |
| Subtotal | 6,487,336,810.39 |
| Less:Baddebtprovision | 764,159,970.92 |
| Total | 5,723,176,839.47 |
(3)BaddebtprovisionforaccountsreceivableduringtheReportingPeriodDuringtheperiod,theactualprovisionforbaddebtsamountedtoRMB35,516,049.10,theamountofbaddebtsincreasedbyRMB1,567,782.76duetoexchangeratefluctuations.Duetothelossofcontrol,theamountofbaddebtreservesdecreasedbyRMB1363677.12.
(4)Top5oftheEndingBalanceoftheAccountsReceivableCollectedaccordingtotheArrearsPartyThetotalamountoftopfiveofaccountreceivableofendingbalancecollectedbyarrearspartywasRMB2,088,823,551.25,accountingfor32.20%oftotalclosingbalanceofaccountreceivable,andtherelevantendingbalanceofbaddebtprovisionwithdrawnwasRMB216,643,284.97.
(5)Therewasnoaccountsreceivablederecognizedfortransferoffinancialassets.
(6)Thereisnoamountofassetsandliabilitiesformedduetothetransferofaccountsreceivableand
continuedinvolvementinthisyear.
5.AccountsReceivableFinancing
Item
| Item | Endingamount | Beginningbalance | ||||
| Cost | Changeinfairvalue | Fairvalueatperiod-end | Cost | Changeinfairvalue | Fairvalueatperiod-end | |
| Notesreceivable | 78,865,016.45 | 78,865,016.45 | 143,174,271.82 | 143,174,271.82 | ||
| Total | 78,865,016.45 | 78,865,016.45 | 143,174,271.82 | 143,174,271.82 | ||
6.Prepayments
| Item | Endingamount | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | |||
| Amount | Proportion(%) | Amount | Proportion(%) | |||
| Within1year | 1,983,501,863.39 | 96.36 | 462,968.20 | 2,064,712,215.34 | 99.23 | 4,772,745.02 |
| 1to2years | 69,799,160.74 | 3.39 | 117,079.09 | 8,325,251.63 | 0.40 | 268,252.73 |
| 2to3years | 3,622,796.03 | 0.18 | 2,168,356.28 | 4,074,992.31 | 0.20 | |
| Over3years | 1,465,942.36 | 0.07 | 625,394.60 | 3,470,588.53 | 0.17 | 2,991,238.20 |
| Total | 2,058,389,762.52 | 100.00 | 3,373,798.17 | 2,080,583,047.81 | 100.00 | 8,032,235.95 |
Note:①Top5oftheendingbalanceoftheprepaymentcollectedaccordingtotheprepaymenttargetoftheCompanywasRMB1,144,074,517.57,accountingfor55.58%ofthetotalendingbalanceofprepayment.②Theamountofbaddebtreserveswithdrawninthecurrentperiodis44464.58yuan;theamountofrecoveredortransferredbackbaddebtreservesis4551305.88yuan;theamountofbaddebtreservesisnotwrittenoff;theamountofbaddebtreservesisincreasedby10103.52Yuanduetothechange
ofexchangerate;andtheamountofbaddebtreservesisreducedby161700.00Yuanduetothelossofcontrol.
7.OtherReceivables
Item
| Item | Endingbalance | Beginningbalance |
| Interestreceivable | 20,197,445.29 | 7,807,400.40 |
| Dividendsreceivable | 547,848.62 | 547,848.62 |
| Otherreceivables | 2,075,842,376.43 | 1,763,828,117.47 |
| Total | 2,096,587,670.34 | 1,772,183,366.49 |
7.1InterestReceivable
| Item | Endingbalance | Beginningbalance |
| Fixedtimedeposit | 19,626,889.41 | 4,807,630.04 |
| Entrustedloans | 2,623,723.82 | |
| Factoringincome | 570,555.88 | 376,046.54 |
| Total | 20,197,445.29 | 7,807,400.40 |
7.2DividendsReceivable
| Item(orinvestees) | Endingbalance | Beginningbalance |
| ChongqingQingjia | 547,848.62 | 547,848.62 |
7.3OtherReceivables
(1)ClassifiedbyAccountNature
| Nature | Endingbalance | Beginningbalance |
| Depositandmargin | 1,360,774,907.30 | 1,307,226,302.83 |
| Intercoursefundsamongminorityshareholdersinthebusinessconsolidationnotunderthesamecontrolandrelatedparties | 180,793,671.28 | 178,968,748.99 |
| Energy-savingsubsidies | 152,402,680.00 | 152,402,680.00 |
| Disposalofnon-currentassets | 513,799,965.00 | 147,256,700.00 |
| Other | 276,046,318.36 | 376,824,887.60 |
| Total | 2,483,817,541.94 | 2,162,679,319.42 |
(2)WithdrawalofBadDebtProvision
Baddebtprovision
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossofthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1January2020 | 15,229,049.09 | 25,449,941.31 | 358,172,211.55 | 398,851,201.95 |
| Carryingamountof1January2020intheCurrentPeriod | - | - | - | - |
| --TransfertoSecondstage | -570,869.64 | 570,869.64 | - | - |
| --TransfertoThirdstage | -200.00 | -524,820.00 | 525,020.00 | - |
| --ReversetoSecondstage | - | - | - | - |
| --ReversetoFirststage | - | - | - | - |
| WithdrawalorreversaloftheCurrentPeriod | 3,165,605.18 | 4,984,065.61 | 983,935.57 | 9,133,606.36 |
| Write-offsoftheCurrentPeriod | - | - | - | - |
| VerificationoftheCurrentPeriod | - | - | - | - |
| Otherchanges | -9,642.80 | - | - | -9,642.80 |
| Balanceof30June2020 | 17,813,941.83 | 30,480,056.56 | 359,681,167.12 | 407,975,165.51 |
Note:Thefirststageisthatcreditriskhasnotincreasedsignificantlysinceinitialrecognition.Forotherreceivableswithanagingportfolioandalow-riskportfoliowithin1year,thelossprovisionismeasuredaccordingtotheexpectedcreditlossesinthenext12months.Thesecondstageisthatcreditriskhasincreasedsignificantlysinceinitialrecognitionbutcreditimpairmenthasnotyetoccurred.Forotherreceivableswithanagingportfolioandalow-riskportfoliothatexceed1year,thelossprovisionismeasuredbasedontheexpectedcreditlossesfortheentireduration.Thethirdstageisthecreditimpairmentafterinitialconfirmation.Forotherreceivablesofcreditimpairmentthathaveoccurred,thelossprovisionismeasuredaccordingtothecreditlossesthathaveoccurredthroughouttheduration.
(3)Withdrawalofbaddebtprovisionforotherreceivablesaccordingtogroup
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion | Amount | Withdrawalproportion | ||
| Otherreceivableswithsignificantindividualamountandmakeindependentprovisionforexpected | 1,117,968,963.17 | 45.01 | 359,681,167.12 | 32.17 | 758,287,796.05 |
Category
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion | Amount | Withdrawalproportion | ||
| creditloss | |||||
| Otherreceivableswithdrawnbaddebtprovisionaccordingtocreditriskscharacteristics | |||||
| Aginggroup | 567,335,432.56 | 22.84 | 34,262,317.70 | 6.04 | 533,073,114.86 |
| Low-riskgroup | 798,513,146.21 | 32.15 | 14,031,680.69 | 1.76 | 784,481,465.52 |
| Subtotalofgroups | 1,365,848,578.77 | 54.99 | 48,293,998.39 | 3.54 | 1,317,554,580.38 |
| Total | 2,483,817,541.94 | 100.00 | 407,975,165.51 | 16.43 | 2,075,842,376.43 |
(Continued)
| Category | Beginningbalance | |||||
| Carryingamount | Baddebtprovision | Carryingvalue | ||||
| Amount | Proportion | Amount | Withdrawalproportion | |||
| Otherreceivableswithsignificantindividualamountandmakeindependentprovisionforexpectedcreditloss | 1,093,025,247.42 | 50.54 | 358,172,211.55 | 32.77 | 734,853,035.87 | |
| 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 | 100.00 | 398,851,201.95 | 18.44 | 1,763,828,117.47 | |
(4)Listedbyaging
| Aging | Endingbalance |
| Within1year | 2,114,244,415.27 |
| 1to2years | 108,133,414.79 |
| 2to3years | 31,533,708.67 |
3to4years
| 3to4years | 3,739,421.03 |
| 4to5years | 83,530,383.35 |
| Over5years | 142,636,198.83 |
| Subtotal | 2,483,817,541.94 |
| Less:Baddebtprovision | 407,975,165.51 |
| Total | 2,075,842,376.43 |
(5)BadDebtProvisionforOtherReceivablesTheamountofbaddebtprovisionwithdrawnwasRMB14,554,961.35,andtheamountreversedorrecoveredwasRMB5,421,354.97,andtheamountofbaddebtsdecreasedbyRMB11,912.50duetothelossofcontrolpowertosubsidiaries,andtheamountofbaddebtsincreasedbyRMB2,269.68duetoexchangeratefluctuations.TherewasnoactualverifiedamountintheReportingPeriod.
(6)Top5OtherReceivablesinEndingBalanceCollectedaccordingtotheArrearsPartyThetotalamountoftopfiveofotherreceivableofendingbalancecollectedbyarrearspartywasRMB987,763,065.00,accountingfor39.77%oftotalclosingbalanceofaccountreceivable,andtherelevantendingbalanceofbaddebtprovisionwithdrawnwasRMB162,534,751.92.
(7)TherewerenootherreceivablesderecognizedduetotransferoffinancialassetsduringtheReportingPeriod.
(8)Therewerenoassetsandliabilitiesformedbytransferringotherreceivablesandcontinuingtobeinvolvedinthisperiod.
8.Inventory
(1)CategoryofInventory
| Item | Endingbalance | |||
| Carryingamount | Ofwhich:thecapitalizedamountoftheborrowings | Fallingpricereserves | Carryingvalue | |
| Developmentprojectsoftheproperty: | ||||
| Developmentcost | ||||
Item
| Item | Endingbalance | |||
| Carryingamount | Ofwhich:thecapitalizedamountoftheborrowings | Fallingpricereserves | Carryingvalue | |
| Landintendedtodevelop | ||||
| Subtotal | ||||
| Non-developmentprojectsoftheproperty: | ||||
| Rawmaterials | 1,575,365,893.98 | 24,774,981.35 | 1,550,590,912.63 | |
| Consignedprocessingmaterials | 21,965,825.24 | - | 21,965,825.24 | |
| Semi-finishedproduct | 147,746,687.87 | 12,407,683.85 | 135,339,004.02 | |
| Inventorygoods | 3,956,845,188.02 | 159,813,710.70 | 3,797,031,477.32 | |
| Finishedbutunsettledassetsfromconstructioncontract | 27,892,231.28 | 27,892,231.28 | ||
| Subtotal | 5,729,815,826.39 | - | 196,996,375.90 | 5,532,819,450.49 |
| Total | 5,729,815,826.39 | - | 196,996,375.90 | 5,532,819,450.49 |
(Continued)
| Item | Beginningbalance | |||
| 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 | ||
| Semi-finishedproduct | 85,821,719.87 | 12,822,030.37 | 72,999,689.50 | |
Item
| Item | Beginningbalance | |||
| Carryingamount | Ofwhich:thecapitalizedamountoftheborrowings | Fallingpricereserves | Carryingvalue | |
| Inventorygoods | 4,176,189,636.39 | 206,509,288.73 | 3,969,680,347.66 | |
| Finishedbutunsettledassetsfromconstructioncontract | 13,594,131.07 | 13,594,131.07 | ||
| Subtotal | 5,553,951,217.44 | 246,453,776.56 | 5,307,497,440.88 | |
| Total | 5,553,951,217.44 | 246,453,776.56 | 5,307,497,440.88 | |
(2)FallingPriceReservesofInventory
| Item | Beginningbalance | Increase | Decrease | Endingbalance | ||
| Withdrawal | Other | Write-off | Decreaseoflosingcontrollingright | |||
| Rawmaterials | 27,122,457.46 | 1,719,467.20 | 4,066,943.31 | 0.00 | 24,774,981.35 | |
| Goodsinprocess | 12,822,030.37 | 143,256.65 | 557,603.17 | 0.00 | 12,407,683.85 | |
| Inventorygoods | 206,509,288.73 | 675,055.03 | 46,935,877.33 | 434,755.73 | 159,813,710.70 | |
| Total | 246,453,776.56 | 2,537,778.88 | 51,560,423.81 | 434,755.73 | 196,996,375.90 | |
(3)WithdrawalProvisionBasisoftheFallingPriceoftheInventoryandtheReasonsoftheReversedorWrite-off
| Item | Specificbasisofwithdrawaloffallingpricereservesofinventory | Reasonsforreverse | Reasonsforwrite-off |
| Rawmaterials | Therealizablenetvaluewaslowerthanthecarryingvalue | Soldordisposedinthecurrentperiod | |
| Goodsinprocess | Therealizablenetvaluewaslowerthanthecarryingvalue | Soldordisposedinthecurrentperiod | |
| Inventorygoods | Therealizablenetvaluewaslowerthanthecarryingvalue | Soldinthecurrentperiod |
(4)Endingbalanceoftheinventorydidn’tincludecapitalizedborrowingexpenses.
9.ContractAssets
(1)Expectedcreditlosslistedbywithdrawalmethod
Category
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion（%） | ||
| Contractassetsforwhichexpectedlosswithdrawnseparately | |||||
| Contractassetsforwhichexpectedlosswithdrawnbygroup | |||||
| Ofwhich:aginggroup | 31,334,935.11 | 100.00 | 636,099.18 | 2.03 | 30,698,835.93 |
| Engineeringgroup | |||||
| Subtotalofgroup | 31,334,935.11 | 100.00 | 636,099.18 | 2.03 | 30,698,835.93 |
| Total | 31,334,935.11 | 100.00 | 636,099.18 | 2.03 | 30,698,835.93 |
(Continued)
| Category | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion（%） | ||
| Contractassetsforwhichexpectedlosswithdrawnseparately | |||||
| Contractassetsforwhichexpectedlosswithdrawnbygroup | |||||
| Ofwhich:Aginggroup | 13,522,835.74 | 100.00 | 274,500.00 | 2.03 | 13,248,335.74 |
| Engineeringgroup | |||||
| Subtotalofgroup | 13,522,835.74 | 100.00 | 274,500.00 | 2.03 | 13,248,335.74 |
| Total | 13,522,835.74 | 100.00 | 274,500.00 | 2.03 | 13,248,335.74 |
Amonggroups,contractassetsforwhichexpectedcreditlosswithdrawnbyaginggroup
| Aging | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion（%） | |
| Within1year | 31,334,935.11 | 636,099.18 | 2.03 |
| Total | 31,334,935.11 | 636,099.18 | 2.03 |
10.CurrentPortionofNon-currentAssets
| Item | Endingbalance | Beginningbalance |
| Entrustedloansforassociatedenterprises | 60,000,000.00 | 60,000,000.00 |
| Currentportionoflong-termreceivable | 45,802,707.58 | 48,087,016.22 |
| Total | 105,802,707.58 | 108,087,016.22 |
11.OtherCurrentAssets
Item
| Item | Endingbalance | Beginningbalance |
| Principalandinterestofentrustedloanstojointventures | 467,057,437.10 | 1,323,295,500.40 |
| Prepaymentsanddeductibletaxes,andrefundoftaxforexportreceivable | 996,585,114.64 | 598,034,887.02 |
| Temporarydifferenceofinputtax | 143,885,609.41 | 134,571,124.94 |
| Costsreceivableofreturninggoods | 11,903,456.07 | 11,005,603.81 |
| Trustinvestment | 66,050,960.75 | 37,311,039.89 |
| Others | 1,685,482,577.97 | 2,104,218,156.06 |
12.Long-termReceivables
(1)ListofLong-termReceivables
Item
| Item | Endingbalance | Beginningbalance | Intervalofdiscountrate | |||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||
| Financeleasingamount | 58,347,993.75 | 58,347,993.75 | 77,783,250.17 | 77,783,250.17 | 4.35%-8.78% | |||
| Ofwhich:unrealizedfinancingincome | 9,439,418.60 | 9,439,418.60 | 9,635,891.82 | 9,635,891.82 | 4.35%-8.78% | |||
| Cashdepositsoflong-termreceivables | 44,554,895.81 | 44,554,895.81 | 28,951,495.81 | 28,951,495.81 | ||||
| Long-termreceivablesofprojectswithfranchisetights | 349,314,656.44 | 349,314,656.44 | 351,861,826.09 | 351,861,826.09 | ||||
| Less:Currentportionoflong-termreceivables(fordetails,seeNoteVI.10) | 45,802,707.58 | 45,802,707.58 | 48,087,016.22 | 48,087,016.22 | ||||
| Total | 406,414,838.42 | 406,414,838.42 | 410,509,555.85 | 410,509,555.85 | — | |||
(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
| PPPProjectofwatersupplyandsewageofRushanSilverBeach | 349,416,483.56 | 351,861,826.09 | 2,547,169.65 | 349,314,656.44 | |
| Total | 349,416,483.56 | 351,861,826.09 | 2,547,169.65 | 349,314,656.44 |
13.Long-termEquityInvestment
| Investee | Beginningbalance | ChangeintheCurrentPeriod | ||||
| Newinvestment | Investmentreduced | Costmethodtoequitymethod | Gain/lossrecognizedatequitymethod | Adjustmenttoothercomprehensiveincome | ||
| KonkaVenturesDevelopment(Shenzhen)Co.,Ltd. | 2,354,141.80 | -12,081.94 | ||||
| NanjingZhihuiguangInformationTechnologyResearchInstituteCo.,Ltd. | 1,446,968.41 | 209,627.54 | ||||
| ShenzhenJielunteTechnologyCo.,Ltd. | 85,665,123.77 | 1,663,751.64 | ||||
| PanxuIntelligenceCo.,Ltd. | 51,084,991.78 | -1,551,143.44 | ||||
| BeijingKonkaJingyuanTechnologyCo.,Ltd. | 763,492.84 | 3,469.27 | ||||
| DongfangJiahui(Zhuhai)AssetManagementCo.,Ltd. | 2,978,676.27 | -364,039.68 | ||||
| DongfangKonkaNo.1(Zhuhai)PrivateEquityFund(LimitedPartnership) | 310,024,401.51 | 19,176,012.60 | -2,312,214.26 | |||
| ShenzhenRF-LINKTechnologyCo.,Ltd. | 88,000,000.00 | -1,880,568.13 | ||||
| GuoguangRuilian(Shenzhen)NetworkTechnologyCo.,Ltd. | 192,323.20 | -94,866.28 | ||||
| PuchuangJiakangTechnologyCo.,Ltd. | 400,000.00 | 1,837,600.86 | ||||
| WeihaiWaterEnvironmentalProtectionTechnologyCo.,Ltd. | 2,493,211.96 | 30,782.14 | ||||
| WeihaiYihengEnvironmentalTechnology | 4,668,292.89 | 48,450.06 | ||||
Investee
| Investee | Beginningbalance | ChangeintheCurrentPeriod | ||||
| Newinvestment | Investmentreduced | Costmethodtoequitymethod | Gain/lossrecognizedatequitymethod | Adjustmenttoothercomprehensiveincome | ||
| Co.,Ltd. | ||||||
| HuoqiuKangrunKaitianWaterEnvironmentalProtectionCo.,Ltd. | 32,434,987.50 | 5,000,000.00 | - | |||
| HuarunEnvironmentalProtectionWaterTreatmentCo.,Ltd. | 16,018,870.31 | 279,756.91 | ||||
| BinzhouBeihaiWeiqiaoSolidWasteTreatmentCo.,Ltd. | 133,633,089.95 | 55,298,233.02 | ||||
| ShandongBishuiyuanEnvironmentalTechnologyCo.,Ltd. | 26,174,621.66 | -81,476.77 | ||||
| ShandongKonkaZhijiaElectricalAppliancesCo.,Ltd. | 4,052,660.23 | -1,968,177.90 | ||||
| HenanKonkaZhijiaElectricalAppliancesCo.,Ltd. | 709,634.82 | -487,788.74 | ||||
| AnhuiKaikaishijieE-commerceCo.,Ltd. | 424,850,308.67 | -6,644,760.80 | ||||
| KunshanKonkaElectronicCo.,Ltd. | 182,413,766.51 | -6,694,486.50 | ||||
| KunshanKangshengInvestmentDevelopmentCo.,Ltd. | 269,673,264.00 | - | ||||
| ChutianDragonCo.,Ltd. | 636,061,636.70 | 7,660,244.55 | ||||
| HeilongjiangLongkangZhijiaTechnologyCo.,Ltd. | 2,380,000.00 | -405,445.45 | ||||
| KonkaGreen,KonkaTechnology | 77,342,419.36 | -583,890.18 | ||||
| ShaanxiSiluYunqiSmartTechnologyCo.,Ltd. | 17,202,315.43 | -1,231,233.96 | ||||
| ShenzhenKonkaInformationNetworkCo.,Ltd. | - | |||||
| ShenzhenZhongbingKonkaTechnologyCo.,Ltd. | 7,273,228.41 | -1,387,373.59 | ||||
Investee
| Investee | Beginningbalance | ChangeintheCurrentPeriod | ||||
| Newinvestment | Investmentreduced | Costmethodtoequitymethod | Gain/lossrecognizedatequitymethod | Adjustmenttoothercomprehensiveincome | ||
| ShenzhenKonkaSmartElectricalApplianceTechnologyCo.,Ltd. | 2,882,149.72 | 266,725.11 | ||||
| ZhuhaiJinsuPlasticCo.,Ltd. | 10,166,404.14 | 383,461.05 | ||||
| ShenzhenBosserNewMaterialsCo.,Ltd. | 73,600,000.00 | -1,200,098.76 | ||||
| ShenzhenYaodeTechnologyCo.,Ltd. | 229,740,245.47 | 145,870.83 | ||||
| WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | 275,577,332.21 | 15,224,245.91 | ||||
| ShenzhenKonkaYishijieCommercialDisplayCo.,Ltd. | 84,273,594.93 | -2,422,790.72 | ||||
| ChuzhouKonkaTechnologyIndustryDevelopmentCo.,Ltd. | 61,029,500.00 | -1,421,124.11 | ||||
| ChuzhouKangjinHealthcareIndustryDevelopmentCo.,Ltd. | 117,460,056.00 | -513,435.79 | ||||
| HaimenKangjianTechnologyIndustrialParkOperationandManagementCo.,Ltd. | 131,273,550.00 | -1,511,213.49 | ||||
| ShenzhenKangyueIndustrialCo.,Ltd. | 33,856,942.00 | -364,533.48 | ||||
| FeideTechnology(Shenzhen)Co.,Ltd. | 14,314,621.68 | -1,830,785.23 | ||||
| ChongqingQingjiaElectronicCo.,Ltd. | 19,168,701.08 | -228,564.40 | ||||
| NanjingKangxingTechnologyIndustrialParkOperationsandManagementCo.,Ltd. | 32,305,671.68 | 32,305,671.68 | - | |||
| KangjingEnvironmentalTechnology(Shenzhen)Co.,Ltd. | 800,000.00 | 800,000.00 | - | |||
| DongguanKonkaElectronicIntelligenceTechnologyCo.,Ltd. | 1,470,000.00 | 416,116.83 | ||||
| E3info(Hainan)TechnologyCo.,Ltd. | - | 56,000,000.00 | - | |||
| Total | 3,465,541,196.89 | 7,670,000.00 | 52,281,684.28 | 56,000,000.00 | 48,276,242.12 | - |
(Continued)
Investee
| Investee | ChangeintheCurrentPeriod | Endingbalance(carryingamount) | Balanceofassetimpairmentallowance | |||
| Otherequitychanges | Cashdividendorprofitdistributiondeclared | Impairmentallowance | Other | |||
| KonkaVenturesDevelopment(Shenzhen)Co.,Ltd. | 2,342,059.86 | |||||
| NanjingZhihuiguangInformationTechnologyResearchInstituteCo.,Ltd. | 1,656,595.95 | |||||
| ShenzhenJielunteTechnologyCo.,Ltd. | 87,328,875.41 | |||||
| PanxuIntelligenceCo.,Ltd. | 49,533,848.34 | |||||
| BeijingKonkaJingyuanTechnologyCo.,Ltd. | 766,962.11 | |||||
| DongfangJiahui(Zhuhai)AssetManagementCo.,Ltd. | 2,614,636.59 | |||||
| DongfangKonkaNo.1(Zhuhai)PrivateEquityFund(LimitedPartnership) | 288,536,174.65 | |||||
| ShenzhenRX-LINKTechnologyCo.,Ltd. | 86,119,431.87 | 8,676,821.83 | ||||
| GuoguangRuilian(Shenzhen)NetworkTechnologyCo.,Ltd. | 97,456.92 | |||||
| PuchuangJiakangTechnologyCo.,Ltd. | 2,237,600.86 | |||||
| WeihaiWaterEnvironmentalProtectionTechnologyCo.,Ltd. | 2,523,994.10 | |||||
| WeihaiYihengEnvironmentalTechnologyCo.,Ltd. | 4,716,742.95 | |||||
| HuoqiuKangrunKaitianWaterEnvironmentalProtectionCo.,Ltd. | 37,434,987.50 | |||||
| HuarunEnvironmentalProtectionWaterTreatmentCo.,Ltd. | 16,298,627.22 | |||||
| BinzhouBeihaiWeiqiaoSolidWasteTreatmentCo.,Ltd. | 188,931,322.97 | |||||
| ShandongBishuiyuanEnvironmentalTechnologyCo.,Ltd. | 26,093,144.89 | |||||
Investee
| Investee | ChangeintheCurrentPeriod | Endingbalance(carryingamount) | Balanceofassetimpairmentallowance | |||
| Otherequitychanges | Cashdividendorprofitdistributiondeclared | Impairmentallowance | Other | |||
| ShandongKonkaZhijiaElectricalAppliancesCo.,Ltd. | 2,084,482.33 | |||||
| HenanKonkaZhijiaElectricalAppliancesCo.,Ltd. | 221,846.08 | |||||
| AnhuiKaikaishijieE-commerceCo.,Ltd. | 418,205,547.87 | |||||
| KunshanKonkaElectronicCo.,Ltd. | 175,719,280.01 | |||||
| KunshanKangshengInvestmentDevelopmentCo.,Ltd. | 269,673,264.00 | |||||
| ChutianDragonCo.,Ltd. | 9,240,000.00 | 634,481,881.25 | ||||
| HeilongjiangLongkangZhijiaTechnologyCo.,Ltd. | 1,974,554.55 | 2,470,398.03 | ||||
| KonkaGreen,KonkaTechnology | 76,758,529.18 | |||||
| ShaanxiSiluYunqiSmartTechnologyCo.,Ltd. | 15,971,081.47 | |||||
| ShenzhenKonkaInformationNetworkCo.,Ltd. | - | 12,660,222.73 | ||||
| ShenzhenZhongbingKonkaTechnologyCo.,Ltd. | 5,885,854.82 | |||||
| ShenzhenKonkaSmartElectricalApplianceTechnologyCo.,Ltd. | 3,148,874.83 | |||||
| ZhuhaiJinsuPlasticCo.,Ltd. | 10,549,865.19 | |||||
| ShenzhenBosserNewMaterialsCo.,Ltd. | 72,399,901.24 | 5,220,857.98 | ||||
| ShenzhenYaodeTechnologyCo.,Ltd. | 229,886,116.30 | |||||
| WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | 290,801,578.12 | |||||
| ShenzhenKonkaYishijieCommercialDisplayCo.,Ltd. | 81,850,804.21 | |||||
Investee
| Investee | ChangeintheCurrentPeriod | Endingbalance(carryingamount) | Balanceofassetimpairmentallowance | |||
| Otherequitychanges | Cashdividendorprofitdistributiondeclared | Impairmentallowance | Other | |||
| ChuzhouKonkaTechnologyIndustryDevelopmentCo.,Ltd. | 59,608,375.89 | |||||
| ChuzhouKangjinHealthcareIndustryDevelopmentCo.,Ltd. | 116,946,620.21 | |||||
| HaimenKangjianTechnologyIndustrialParkOperationandManagementCo.,Ltd. | 129,762,336.51 | |||||
| ShenzhenKangyueIndustrialCo.,Ltd. | 33,492,408.52 | |||||
| FeideTechnology(Shenzhen)Co.,Ltd. | 12,483,836.45 | |||||
| ChongqingQingjiaElectronicCo.,Ltd. | 18,940,136.68 | |||||
| NanjingKangxingTechnologyIndustrialParkOperationsandManagementCo.,Ltd. | - | |||||
| KangjingEnvironmentalTechnology(Shenzhen)Co.,Ltd. | - | |||||
| DongguanKonkaElectronicIntelligenceTechnologyCo.,Ltd. | 1,886,116.83 | |||||
| E3info(Hainan)TechnologyCo.,Ltd. | 56,000,000.00 | |||||
| Total | - | 9,240,000.00 | - | - | 3,515,965,754.73 | 29,028,300.57 |
14.OtherEquityInstrumentInvestment
(1)Investmentinnon-tradingequityinstruments
Item
| Item | Endingbalance | Beginningbalance |
| ShenzhenTianyilianScience&TechnologyCo.,Ltd. | ||
| ShenzhenAdoptNetworkCo.,Ltd. | ||
| BeijingKonkaTechnologyCo.,Ltd. | 1,200,000.00 | 1,200,000.00 |
| AVO | 6,000,000.00 | 6,000,000.00 |
| ShaoyangHaishangEcologicalAgriculturalTechnologyCo.,Ltd. | 1,501,956.00 | 1,501,956.00 |
| FeihongElectronicsCo.,Ltd. | ||
| ZAEFI | ||
| ShenzhenChuangceInvestmentDevelopmentCo.,Ltd. | ||
| ShanlianInformationTechnologyEngineeringCenter | 1,860,809.20 | 1,860,809.20 |
| 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 |
| GuangdongBohuaUHDInnovationCenterCo.,Ltd. | 1.00 | |
| Total | 21,642,171.36 | 21,642,170.36 |
(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 | |||||
| FeihongElectronicsCo.,Ltd. | 1,300,000.00 | Long-termholdingbasedonstrategicpurpose | ||||
| ZAEFI | 100,000.00 | Long-termholdingbasedonstrategicpurpose | ||||
| ShenzhenChuangceInvestmentDevelopmentCo.,Ltd. | 485,000.00 | Long-termholdingbasedonstrategicpurpose | ||||
| ShanlianInformation | 3,139,190.80 | Long-termholdingbasedon |
Item
| Item | Dividendincomerecognizedinthecurrentperiod | Accumulativegain | Accumulativeloss | Amountofretainedearningstransferredfromothercomprehensiveincome | Reasonforbeingdesignatedtobemeasuredatfairvalueofwhichrecordedinothercomprehensiveincome | Reasonforretainedearningstransferredfromothercomprehensiveincome |
| TechnologyEngineeringCenter | strategicpurpose | |||||
| ShenzhenCIUScience&TechnologyCo.,Ltd. | 200,000.00 | Long-termholdingbasedonstrategicpurpose | ||||
| ShenzhenDigitalTVNationalEngineeringLaboratoryCo.,Ltd. | 1,273,594.84 | Long-termholdingbasedonstrategicpurpose | ||||
| ShanghaiNationalEngineeringResearchCenterofDigitalTVCo.,Ltd. | Long-termholdingbasedonstrategicpurpose | |||||
| GuangdongBohuaUHDInnovationCenterCo.,Ltd. | Long-termholdingbasedonstrategicpurpose | |||||
| Total | 20,547,785.64 |
15.OtherNon-currentFinancialAssets
| Item | Endingbalance | Beginningbalance |
| Equityinvestments | 540,230,000.00 | 540,230,000.00 |
| Investmentsindebtobligations | 1,185,342,108.78 | 1,212,891,727.83 |
| Total | 1,725,572,108.78 | 1,753,121,727.83 |
Note:ThedebtinvestmentattheendoftheyearwasmainlytheCompany’sdebtfundinvestedinChuzhouHuikeIntelligentHomeAppliancesIndustryInvestmentPartnership(LimitedPartnership).
16.InvestmentProperty
| Item | Housesandbuildings |
| I.Originalcarryingvalue | |
| 1.Beginningbalance | 447,413,230.79 |
| 2.Increasedamountoftheperiod | |
| 3.Decreasedamountoftheperiod | |
| 4.Endingbalance | 447,413,230.79 |
| II.Theaccumulativedepreciationandaccumulativeamortization | |
| 1.Beginningbalance | 47,215,856.72 |
| 2.Increasedamountoftheperiod | 6,544,472.78 |
| 3.Decreasedamountoftheperiod | |
| 4.Endingbalance | 53,760,329.50 |
| III.Impairmentprovision | |
| 1.Beginningbalance |
Item
| Item | Housesandbuildings |
| 2.Increasedamountoftheperiod | |
| 3.Decreasedamountoftheperiod | |
| 4.Endingbalance | - |
| IV.Carryingvalue | |
| 1.Endingcarryingvalue | 393,652,901.29 |
| 2.Beginningcarryingvalue | 400,197,374.07 |
17.FixedAssets
Item
| Item | Endingcarryingvalue | Beginningcarryingvalue |
| Fixedassets | 2,604,608,094.07 | 2,561,254,191.55 |
| Total | 2,604,608,094.07 | 2,561,254,191.55 |
(1)ListofFixedAssets
| Item | Housesandbuildings | Machineryequipment | Electronicequipment | Transportationequipment | Otherequipment | Total |
| I.Originalcarryingvalue | ||||||
| 1.Beginningbalance | 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 |
| 2.Increasedamountoftheperiod | 3,338,042.93 | 151,535,046.93 | 15,869,439.60 | 2,630,281.95 | 24,942,140.12 | 198,314,951.53 |
| (1)Purchase | 440,858.83 | 58,212,647.00 | 15,755,740.00 | 2,630,281.95 | 24,626,746.06 | 101,666,273.84 |
| (2)Transferofconstructioninprogress | 2,897,184.10 | 93,322,399.93 | 113,699.60 | - | 315,394.06 | 96,648,677.69 |
| (3)Increaseforbusinesscombination | ||||||
| 3.Decreasedamountoftheperiod | - | 7,568,777.40 | 3,708,509.06 | 1,744,551.32 | 4,000,661.17 | 17,022,498.95 |
| (1)DisposalorScrap | - | 7,568,777.40 | 2,467,756.57 | 1,408,692.34 | 3,758,779.85 | 15,204,006.16 |
| (2)Decreaseforlossofcontrollingright | - | - | 1,240,752.49 | 335,858.98 | 241,881.32 | 1,818,492.79 |
| (3)Decreaseforotherreasons | ||||||
| 4.Endingbalance | 2,038,556,149.92 | 2,161,114,614.94 | 196,225,586.39 | 58,949,598.26 | 262,555,340.28 | 4,717,401,289.79 |
| II.Accumulativedepreciation |
Item
| Item | Housesandbuildings | Machineryequipment | Electronicequipment | Transportationequipment | Otherequipment | Total |
| 1.Beginningbalance | 633,844,572.99 | 939,156,102.95 | 139,979,797.13 | 39,874,403.17 | 153,386,011.72 | 1,906,240,887.96 |
| 2.Increasedamountoftheperiod | 35,216,196.42 | 89,647,559.84 | 7,347,860.94 | 2,936,547.21 | 15,796,664.56 | 150,944,828.97 |
| (1)Withdrawal | 35,216,196.42 | 89,647,559.84 | 7,347,860.94 | 2,936,547.21 | 15,796,664.56 | 150,944,828.97 |
| (2)Increaseforbusinesscombination | ||||||
| 3.Decreasedamountoftheperiod | - | 5,726,983.77 | 2,855,618.03 | 2,484,661.15 | 1,910,951.29 | 12,978,214.24 |
| (1)Disposalorscrap | - | 5,726,983.77 | 2,700,807.11 | 2,484,661.15 | 1,859,966.57 | 12,772,418.60 |
| (2)Decreaseforlossofcontrollingright | - | - | 154,810.92 | - | 50,984.72 | 205,795.64 |
| (3)Decreaseforotherreasons | ||||||
| 4.Endingbalance | 669,060,769.41 | 1,023,076,679.02 | 144,472,040.04 | 40,326,289.23 | 167,271,724.99 | 2,044,207,502.69 |
| III.Depreciationreserves | ||||||
| 1.Beginningbalance | 1,247,805.91 | 64,023,905.57 | 1,156,577.28 | 820,215.24 | 1,365,253.70 | 68,613,757.70 |
| 2.Increasedamountoftheperiod | - | - | - | - | - | - |
| (1)Withdrawal | ||||||
| (2)Increaseforbusinesscombination | ||||||
| 3.Decreasedamountoftheperiod | - | 731.50 | 7,330.00 | - | 20,003.17 | 28,064.67 |
| (1)DisposalorScrap | - | 731.50 | 7,330.00 | - | 20,003.17 | 28,064.67 |
| (2)Decreaseoflossofcontrollingright | ||||||
| 4.Endingbalance | 1,247,805.91 | 64,023,174.07 | 1,149,247.28 | 820,215.24 | 1,345,250.53 | 68,585,693.03 |
| IV.Carryingvalue | ||||||
| 1.Endingcarryingvalue | 1,368,247,574.60 | 1,074,014,761.85 | 50,604,299.07 | 17,803,093.79 | 93,938,364.76 | 2,604,608,094.07 |
Item
| Item | Housesandbuildings | Machineryequipment | Electronicequipment | Transportationequipment | Otherequipment | Total |
| 2.Beginningcarryingvalue | 1,400,125,728.09 | 1,013,968,336.89 | 42,928,281.44 | 17,369,249.22 | 86,862,595.91 | 2,561,254,191.55 |
(2)ListofTemporarilyIdleFixedAssets
Item
| Item | Originalcarryingvalue | Accumulativedepreciation | Impairmentprovision | Carryingvalue |
| Mechanicalequipment | 8,998,385.06 | 3,753,926.57 | 3,248,191.69 | 1,996,266.80 |
| Electronicequipment | 1,247,255.09 | 1,086,708.79 | 0.00 | 160,546.30 |
| Transportationequipment | 3,247.86 | 2,825.62 | 0.00 | 422.24 |
| Otherequipment | 400,567.15 | 329,074.12 | 44,680.56 | 26,812.47 |
| Total | 10,649,455.16 | 5,172,535.10 | 3,292,872.25 | 2,184,047.81 |
(3)FixedAssetsLeasedinfromFinancingLease
| Item | Originalcarryingvalue | Accumulativedepreciation | Impairmentprovision | Carryingvalue |
| Mechanicalequipment | 725,823,746.70 | 376,119,900.17 | 349,703,846.53 | |
| Transportationequipment | 10,127,135.80 | 8,286,417.77 | 1,840,718.03 | |
| Electronicequipment | 46,755,498.64 | 39,547,880.45 | 7,207,618.19 | |
| Otherequipment | 44,462,008.16 | 33,814,152.90 | 10,647,855.26 | |
| Total | 827,168,389.30 | 457,768,351.29 | - | 369,400,038.01 |
(4)FixedAssetsLeasedoutfromOperationLease
| Item | Endingcarryingvalue |
| Mechanicalequipment | 8,939,914.52 |
| Otherequipment | 176,886.36 |
| Total | 9,116,800.88 |
(5)DetailsofFixedAssetsFailedtoAccomplishCertificationofProperty
| Item | Originalcarryingvalue | Accumulativedepreciation | Impairmentprovision | Netcarryingvalue | Reason |
| YikangBuildingproperty | 76,610,752.33 | 36,042,945.79 | 40,567,806.54 | Historicalreasons | |
| JingyuanBuildingproperty | 20,018,497.00 | 9,320,142.83 | 10,698,354.17 | Historicalreasons | |
| 26-1Longzhimeng,PangjiangStreetPropertyinDadongDistrict, | 6,072,572.34 | 940,728.05 | 0 | 5,131,844.29 | Theproblemsofdevelopers |
Item
| Item | Originalcarryingvalue | Accumulativedepreciation | Impairmentprovision | Netcarryingvalue | Reason |
| Shenyang | |||||
| PurificationtankforliquidwasteofXingDaHongYe | 2,653,000.00 | 1,422,671.25 | 1,230,328.75 | Underprocessing |
(6)FixedAssetswithRestrictedOwnershiporUseRight
| Item | Endingcarryingvalue | Reasonforrestriction |
| PropertyandmachineryequipmentofJiangxiKonka | 178,840,872.53 | Financeleasemortgage/mortgageloans |
| MachineryequipmentofNanoCrystallizedGlass | 80,378,792.95 | Financeleasemortgage |
| WorkshopsandlandsofXingDaHongYe | 52,098,544.55 | Mortgageloans |
| MachineryequipmentofXinfengMicrocrystalline | 43,174,739.52 | Financeleasemortgage |
| FixedassetsofXingDaHongYe | 24,769,957.06 | Financeleasemortgage |
| RealestatesuchasworkshopsofBoluoKonkaPrecision | 8,272,321.05 | Mortgageloans |
| MachineryequipmentofDongguanKonka | 17,438,299.57 | Financeleasemortgage |
| MachineryequipmentandotherequipmentofKonkaGroup | 24,510,709.71 | Financeleasemortgage |
| MachineryequipmentofBoluoKonkaPrecision | 286,666.67 | Financeleasemortgage |
| Total | 429,770,903.61 |
18.ConstructioninProgress
Item
| Item | Endingbalance | Beginningbalance |
| Constructioninprogress | 4,892,296,487.39 | 4,291,544,368.52 |
| Total | 4,892,296,487.39 | 4,291,544,368.52 |
(1)ListofConstructioninProgress
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Impairmentprovision | Carryingvalue | Carryingamount | Impairmentprovision | Carryingvalue | |
| ComprehensiveimprovementengineeringprojectofdrainagebasinsinthecityofDonggang | 770,909,783.71 | 770,909,783.71 | 715,838,346.63 | 715,838,346.63 | ||
| PPPProjectofFunanSewageTreatment | 636,074,767.47 | 636,074,767.47 | 592,295,248.19 | 592,295,248.19 | ||
| WatersupplyengineeringprojectinMazongshanTown,SubeiMongolAutonomousCounty,GansuProvince | 584,377,344.07 | 584,377,344.07 | 571,112,712.15 | 571,112,712.15 | ||
| PPPProjectofLushanShaheEcologicalRehabilitationandImprovement(PhaseI) | 514,234,788.58 | 514,234,788.58 | 511,792,398.90 | 511,792,398.90 | ||
| IntegratedPPPProjectofHuangpiSewageTreatment | 416,977,365.25 | 416,977,365.25 | 385,214,225.65 | 385,214,225.65 | ||
| ThesecondlineofJiangxiNanoCrystallizedGlass | 335,752,030.05 | 335,752,030.05 | 336,485,492.44 | 336,485,492.44 | ||
| CentralCityComprehensiveacceleratedprogramsinEconomicandTechnologicalDevelopmentZoneofBinhai,Weifang | 538,844,383.32 | 538,844,383.32 | 329,745,585.38 | 329,745,585.38 | ||
| AnkangSmartPlant | 238,515,053.54 | 238,515,053.54 | 143,320,357.80 | 143,320,357.80 | ||
| TongchuanProject | 100,119,792.62 | 100,119,792.62 | 99,720,949.28 | 99,720,949.28 | ||
| ThesecondsewageplantofLaizhou | 148,649,338.47 | 148,649,338.47 | 90,971,785.34 | 90,971,785.34 | ||
Item
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Impairmentprovision | Carryingvalue | Carryingamount | Impairmentprovision | Carryingvalue | |
| YibinKonkaHi-TechIndustrialPark | 87,364,699.89 | 87,364,699.89 | 86,183,539.65 | 86,183,539.65 | ||
| DayiProject | 135,272,232.70 | 135,272,232.70 | 79,258,722.98 | 79,258,722.98 | ||
| GuangmingProject | 46,700,545.82 | 46,700,545.82 | 39,753,607.36 | 39,753,607.36 | ||
| Othersmallprojects | 338,504,361.90 | 338,504,361.90 | 309,851,396.77 | 309,851,396.77 | ||
| Total | 4,892,296,487.39 | 4,892,296,487.39 | 4,291,544,368.52 | 4,291,544,368.52 | ||
(2)ChangesofSignificantConstructioninProgress
| Nameofitem | Estimatednumber | Beginningbalance | IncreaseAmount | Decreaseamount | Endingbalance | |
| Transferredtolong-termassets | Otherdecrease | |||||
| ComprehensiveimprovementengineeringprojectofdrainagebasinsinthecityofDonggang | RMB1.299billion | 715,838,346.63 | 55,071,437.08 | 770,909,783.71 | ||
| PPPProjectofFunanSewageTreatment | RMB972million | 592,295,248.19 | 43,779,519.28 | 636,074,767.47 | ||
| WatersupplyengineeringprojectinMazongshanTown,SubeiMongolAutonomousCounty,GansuProvince | RMB970million | 571,112,712.15 | 13,264,631.92 | 584,377,344.07 | ||
| PPPProjectofLushanShaheEcologicalRehabilitationandImprovement(PhaseI) | RMB1.268billion | 511,792,398.90 | 2,442,389.68 | 514,234,788.58 | ||
| IntegratedPPPProjectofHuangpiSewageTreatment | RMB738million | 385,214,225.65 | 31,763,139.60 | 416,977,365.25 | ||
Nameofitem
| Nameofitem | Estimatednumber | Beginningbalance | IncreaseAmount | Decreaseamount | Endingbalance | |
| Transferredtolong-termassets | Otherdecrease | |||||
| ThesecondlineofJiangxiNanoCrystallizedGlass | RMB434million | 336,485,492.44 | 158,093.67 | 891,556.06 | 335,752,030.05 | |
| CentralCityComprehensiveacceleratedprogramsinEconomicandTechnologicalDevelopmentZoneofBinhai,Weifang | RMB2.85billion | 329,745,585.38 | 209,098,797.94 | 538,844,383.32 | ||
| AnkangSmartPlant | RMB697million | 143,320,357.80 | 95,194,695.74 | 238,515,053.54 | ||
| TongchuanProject | RMB393million | 99,720,949.28 | 398,843.34 | 100,119,792.62 | ||
| ThesecondsewageplantofLaizhou | RMB256million | 90,971,785.34 | 57,677,553.13 | 148,649,338.47 | ||
| YibinKonkaHi-TechIndustrialPark | RMB350million | 86,183,539.65 | 1,181,160.24 | 87,364,699.89 | ||
| DayiProject | RMB380million | 79,258,722.98 | 56,013,509.72 | 135,272,232.70 | ||
| GuangmingProject | RMB501million | 39,753,607.36 | 7,004,122.93 | 57,184.47 | 46,700,545.82 | |
| Othersmallprojects | 309,851,396.77 | 149,813,769.61 | 118,291,882.08 | 2,868,922.40 | 338,504,361.90 | |
| Total | 4,291,544,368.52 | 722,861,663.88 | 118,349,066.55 | 3,760,478.46 | 4,892,296,487.39 | |
(Continued)
| Nameofitem | Estimatednumber | Proportionestimatedoftheprojectaccumulativeinput(%) | Projectprogress | Accumulativeamountofcapitalizedinterests | Ofwhich:theamountofthecapitalizedinterestsoftheperiod | Capitalizationrateoftheinterestsoftheperiod(%) | Capitalresources |
| Comprehensiveimprovementengineeringprojectof | RMB1,299 | 59.34 | 59.34 | 47,594,995.60 | 14,944,999.99 | 27.14 | Self-ownedfundandbank |
Nameofitem
| Nameofitem | Estimatednumber | Proportionestimatedoftheprojectaccumulativeinput(%) | Projectprogress | Accumulativeamountofcapitalizedinterests | Ofwhich:theamountofthecapitalizedinterestsoftheperiod | Capitalizationrateoftheinterestsoftheperiod(%) | Capitalresources |
| drainagebasinsinthecityofDonggang | million | financing | |||||
| PPPProjectofFunanSewageTreatment | RMB972million | 65.42 | 65.42 | 14,435,375.00 | 10,512,156.25 | 24.01 | Self-ownedfundandbankfinancing |
| WatersupplyengineeringprojectinMazongshanTown,SubeiMongolAutonomousCounty,GansuProvince | RMB970million | 60.24 | 60.24 | 7,192,020.00 | 7,192,020.00 | 54.22 | Self-ownedfundandbankfinancing |
| PPPProjectofLushanShaheEcologicalRehabilitationandImprovement(PhaseI) | RMB1,268million | 40.56 | 40.56 | Self-ownedfund | |||
| IntegratedPPPProjectofHuangpiSewageTreatment | RMB738million | 56.47 | 56.47 | 5,302,616.67 | 5,302,616.67 | 16.69 | Self-ownedfundandbankfinancing |
| ThesecondlineofJiangxiNanoCrystallizedGlass | RMB434million | 91.09 | 91.09 | 32,249,994.16 | Self-ownedfundandfinanceleasing | ||
| CentralCityComprehensiveacceleratedprogramsinEconomicandTechnologicalDevelopmentZoneofBinhai,Weifang | RMB2,850million | 18.91 | 18.91 | 11,529,912.19 | 5,844,242.25 | 2.79 | Self-ownedfundandbankfinancing |
| AnkangSmartPlant | RMB697million | 34.22 | 34.22 | Self-ownedfund | |||
| TongchuanProject | RMB393million | 25.47 | 25.47 | Self-ownedfund | |||
| ThesecondsewageplantofLaizhou | RMB256mill | 57.98 | 57.98 | 2,102,337.77 | 2,102,337.77 | 3.64 | Self-ownedfundandbank |
Nameofitem
| Nameofitem | Estimatednumber | Proportionestimatedoftheprojectaccumulativeinput(%) | Projectprogress | Accumulativeamountofcapitalizedinterests | Ofwhich:theamountofthecapitalizedinterestsoftheperiod | Capitalizationrateoftheinterestsoftheperiod(%) | Capitalresources |
| ion | financing | ||||||
| YibinKonkaHi-TechIndustrialPark | RMB350million | 24.96 | 24.96 | Self-ownedfund | |||
| DayiProject | RMB380million | 35.57 | 35.57 | 158,251.11 | 158,251.11 | 0.28 | Self-ownedfundandbankfinancing |
| GuangmingProject | RMB501million | 9.32 | 9.32 | Self-ownedfundandprojectloans | |||
| Othersmallprojects | 40,639,935.43 | 1,410,132.57 | |||||
| Total | 161,205,437.93 | 47,466,756.61 |
18.IntangibleAssets
(1)Listofintangibleassets
Item
| Item | Landuseright | Intellectualproperty | Total | ||||
| Trademarkright | Patentandproprietarytechnology | Franchiserights | Righttousesoftwareandothers | Subtotal | |||
| I.Originalcarryingvalue | |||||||
| 1.Beginningbalance | 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 |
| 2.Increasedamountoftheperiod | 12,042,806.00 | - | - | - | 4,516,284.26 | 4,516,284.26 | 16,559,090.26 |
| (1)Purchase | 32,054.00 | - | - | - | 2,987,084.38 | 2,987,084.38 | 3,019,138.38 |
| (2)Transferofconstructioninprogress | 12,010,752.00 | - | - | - | 1,529,199.88 | 1,529,199.88 | 13,539,951.88 |
| (3)Increaseforbusinesscombination | - | - | - | - | - | - | - |
| (4)Increaseforotherreasons | - | - | - | - | - | - | - |
| 3.Decreasedamountoftheperiod | 19,440,000.00 | - | - | - | - | - | 19,440,000.00 |
| (1)Disposal | - | - | - | - | - | - | - |
| (2)Decreaseforlosingcontrollingright | - | - | - | - | - | - | - |
| (3)Decreaseforotherreasons | 19,440,000.00 | - | - | - | - | - | 19,440,000.00 |
| 4.Endingbalance | 1,019,025,873.19 | 75,482,617.43 | 102,532,417.78 | 106,571,344.10 | 104,206,289.50 | 388,792,668.81 | 1,407,818,542.00 |
| II.Accumulatedamortization | |||||||
Item
| Item | Landuseright | Intellectualproperty | Total | ||||
| Trademarkright | Patentandproprietarytechnology | Franchiserights | Righttousesoftwareandothers | Subtotal | |||
| 1.Beginningbalance | 78,757,617.42 | 5,272,221.47 | 56,417,825.66 | 11,105,062.50 | 42,973,928.86 | 115,769,038.49 | 194,526,655.91 |
| 2.Increasedamountoftheperiod | 24,361,928.20 | 965,755.00 | 2,764,344.31 | 2,221,012.50 | 4,987,571.23 | 10,938,683.04 | 35,300,611.24 |
| (1)Withdrawal | 24,361,928.20 | 965,755.00 | 2,764,344.31 | 2,221,012.50 | 4,987,571.23 | 10,938,683.04 | 35,300,611.24 |
| (2)Increaseforbusinesscombination | - | - | - | - | - | - | - |
| 3.Decreasedamountoftheperiod | - | - | - | - | - | - | - |
| (1)Disposal | - | - | - | - | - | - | - |
| (2)Decreaseforlosingcontrollingright | - | - | - | - | - | - | - |
| 4.Endingbalance | 103,119,545.62 | 6,237,976.47 | 59,182,169.97 | 13,326,075.00 | 47,961,500.09 | 126,707,721.53 | 229,827,267.15 |
| 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)Decreaseforlosing | - | - | - | - | - | - | - |
Item
| Item | Landuseright | Intellectualproperty | Total | ||||
| Trademarkright | Patentandproprietarytechnology | Franchiserights | Righttousesoftwareandothers | Subtotal | |||
| controllingright | |||||||
| 4.Endingbalance | - | - | 2,901,082.61 | - | - | 2,901,082.61 | 2,901,082.61 |
| IV.Carryingvalue | |||||||
| 1.Endingcarryingvalue | 915,906,327.57 | 69,244,640.96 | 40,449,165.20 | 93,245,269.10 | 56,244,789.41 | 259,183,864.67 | 1,175,090,192.24 |
| 2.Beginningcarryingvalue | 947,665,449.77 | 70,210,395.96 | 43,213,509.51 | 95,466,281.60 | 56,716,076.38 | 265,606,263.45 | 1,213,271,713.22 |
(2)LandUseRightwithCertificateofTitleUncompleted
Item
| Item | Carryingvalue | Reason |
| LandusagerightofNanocrystalline | 5,291,444.05 | Underprocessing |
| LandusagerightofSuiningNanqiangHX22-05-03block | 18,885,624.77 | Underprocessing |
(3)SignificantIntangibleAssets
| Item | Endingcarryingvalue | Remainingamortizationperiod(year) |
| LandusagerightofFenggangKonkaIntelligentIndustrialPark | 200,075,096.67 | 49.17 |
| LandusagerightofDongguanInvestment | 154,842,018.30 | 49.42 |
| FranchiserightsofsewagetreatmentinLaizhou | 97,724,550.01 | 22.00 |
| LandusagerightofXGY(2006)No.04049 | 68,982,539.89 | 36.25 |
| LandusagerightofHuanjia(Henan) | 66,574,144.04 | 49.00 |
| LandusagerightofChongqingKonka | 43,113,525.46 | 49.17 |
| LandreservecenterAnkangSmartPlant2#land | 56,536,722.66 | 48.33 |
| LandreservecenterAnkangSmartPlant3#land | 19,412,986.67 | 48.42 |
(4)IntangibleAssetswithrestrictedownershiporusingright
| Item | Endingcarryingvalue | Reason |
| LandusagerightofXingDaHongYe | 26,099,177.37 | Mortgageloanofland |
| LandusagerightofJiangxiKonka | 10,619,219.96 | Mortgageloanofland |
| LandusagerightofYinbinKonka | 13,674,951.59 | Landmortgageguarantee |
| LandusagerightofKonkaGuangmingTechnologyCenterPhaseI | 13,237,669.89 | Mortgageloanofland |
20.Goodwill
(1)OriginalCarryingValueofGoodwill
| Nameoftheinvestees | Beginningbalance | Increase | Decrease | Endingbalance | ||
| Formedfromthebusinesscombination | Other | Disposal | 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
| XingDaHongYe | 44,156,682.25 | 44,156,682.25 | |
| Total | 855,691,423.75 | 855,691,423.75 |
(2)ProvisionsforGoodwillImpairment
| Nameoftheinvestees | Beginningbalance | Increase | Decrease | 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)RelevantinformationontheassetgrouporcombinationofassetgroupswheregoodwillislocatedTheCompanyhasassessedtherecoverableamountoftheassetgrouporcombinationofassetgroupswhichgoodwillisincluded.Theassetgroupcomposedofidentifiableintangibleassets(excludingworkingcapitalandnon-operatingassets)isrelatedtogoodwill.Theconfirmationoftheassetgroupatthetimeofgoodwillimpairmenttestisconsistentwiththeassetgrouporcombinationofassetgroupsdeterminedatthedateofpurchaseandthegoodwillimpairmenttestinprioryear.
(4)Thekeyassumptionsandbasisforcalculatingtherecoverableamountoftheassetgroupareasfollows:
①Assumingthattheassessedunitcontinuestooperate,andtherearenomajorchangesinthekeyaspectsofthebusinessscope,salesmodelandchannels,management,etc.thataffectproductionandoperationfromthecurrentsituation;②Assumethatthesocialandeconomicenvironmentoftheassessedunitdoesnotchangesignificantly,andtherelevantlaws,regulations,andpoliciesofthecountryandtheregionwherethecompanyislocatedhavenomajorchanges;③Assumethatthebusinessscope,operationmode,managementmode,etc.oftheassessedunitarecontinuouslyimprovedandimprovedonthebasisofmaintainingconsistency,andcanmaketimelyadjustmentsandinnovationsastheeconomydevelops;④Assumethatthevariousproductsprovidedbytheassessedunitcanadapttomarketdemand,theformulatedgoalsandmeasurescanbeachievedasscheduledandatthescheduledtime,andtheexpectedbenefitsareobtained;⑤Assumingthatinterestrates,exchangerates,taxbasesandtaxratesdonotchangesignificantly
withinthenormalrangeprescribedbythestate.⑥Therecoverableamountoftheassetgroupandassetgroupcombinationisbasedonthefive-yearbudgetapprovedbythemanagementandcalculatedusingthecashflowforecastmethod.
(5)Thegoodwillimpairmentofeachassetgroupofthecompanyisasfollows:
Accordingtotheresultsofgoodwillimpairmenttesting,therewasnoimpairmentlossongoodwillduringtheReportingPeriod.
21.Long-termDeferredExpenses
Item
| Item | Beginningbalance | Increasedamount | Amortizationamount | Otherdecreasedamount | Endingamount |
| Renovationcosts | 35,841,835.32 | 16,939,152.65 | 8,413,599.71 | 253,700.18 | 44,113,688.08 |
| Shoppeexpense | 44,140,602.62 | 12,387,221.92 | 18,218,245.21 | 4,980,435.75 | 33,329,143.58 |
| Other | 27,607,640.94 | 41,950,469.08 | 24,086,333.74 | - | 45,471,776.28 |
| Total | 107,590,078.88 | 71,276,843.65 | 50,718,178.66 | 5,234,135.93 | 122,914,607.94 |
22.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)DeferredIncomeTaxAssetswithoutOffset
| Item | Endingbalance | Beginningbalance | ||
| Deductibletemporarydifference | Deferredincometaxassets | Deductibletemporarydifference | Deferredincometaxassets | |
| Deductiblelosses | 2,978,386,373.89 | 695,472,531.02 | 2,855,624,412.76 | 706,342,740.49 |
| Assetsimpairmentprovision | 1,132,956,560.29 | 236,715,749.15 | 1,079,890,030.44 | 231,517,239.58 |
| Deferredincome | 67,352,832.75 | 15,517,632.54 | 66,778,170.56 | 15,971,309.52 |
| Accruedexpenses | 45,645,549.87 | 7,402,938.72 | 70,273,842.14 | 12,047,558.72 |
| Unrealizedinternalsalesprofits | 28,473,084.48 | 7,118,271.12 | 18,570,975.99 | 4,642,744.00 |
| Other | 71,590,583.67 | 14,816,563.23 | 75,254,629.43 | 17,241,589.86 |
| Total | 4,324,404,984.95 | 977,043,685.78 | 4,166,392,061.32 | 987,763,182.17 |
(2)ListsofDeferredIncomeTaxLiabilitieswithoutOffset
| Item | Endingbalance | Beginningbalance |
Taxabletemporarydifference
| Taxabletemporarydifference | Deferredincometaxliabilities | Taxabletemporarydifference | Deferredincometaxliabilities | |
| Estimatedaddedvaluenotunderthesamecontrol | 380,723,046.81 | 72,023,684.99 | 406,494,736.72 | 76,293,954.88 |
| Prepaidinterest | 59,035,904.96 | 14,758,976.24 | 68,199,141.94 | 16,489,202.46 |
| Accelerateddepreciationoffixedassets | 2,610,115.36 | 531,788.84 | 3,732,276.80 | 559,841.52 |
| Other | 14,102,219.09 | 2,964,971.74 | 8,496,388.76 | 2,124,097.19 |
| Total | 456,471,286.22 | 90,279,421.81 | 486,922,544.22 | 95,467,096.05 |
(3)ListofUnrecognizedDeferredIncomeTaxAssets
| Item | Endingbalance | Beginningbalance |
| Deductiblelosses | 2,808,113,844.40 | 2,693,777,327.44 |
| Deductibletemporarydifference | 462,962,624.06 | 407,628,243.69 |
| Total | 3,271,076,468.46 | 3,101,405,571.13 |
23.OtherNon-currentAssets
| Item | Endingbalance | Beginningbalance |
| Prepaymentforlandpurchase | 926,164,267.01 | 820,340,528.30 |
| Prepaymentforequipment | 387,962,414.33 | 277,656,830.39 |
| Entrustedloans | 40,000,000.00 | 40,000,000.00 |
| Constructionofgovernmentprojects | 23,463,565.16 | 34,475,365.16 |
| Total | 1,377,590,246.50 | 1,172,472,723.85 |
24.Short-termBorrowings
| Category | Endingbalance | Beginningbalance |
| Creditloan | 9,223,684,842.51 | 7,305,280,566.00 |
| Guaranteedloan(note①) | 1,748,701,986.12 | 1,505,320,018.29 |
| Pledgedloan(note②) | 344,178,645.78 | 1,362,069,755.34 |
| Mortgagepledgedloan(note③) | 95,000,000.00 | 95,000,000.00 |
| Mortgagedguaranteedloan(note④⑤) | 65,016,900.00 | 65,016,900.00 |
| Total | 11,476,582,374.41 | 10,332,687,239.63 |
Note:
①TheCompanyprovidesjointliabilityguaranteesforitssubsidiariesDongguanKonka,AnhuiKonka,SichuanKonka,PengrunTechnology,HongKongKonka,XingdaHongye,YikangTechnology,JiangxiKonka,XinfengMicrocrystalline,NanoCrystallizedGlass,ElectronicsTechnologyandNingboKanghanruiElectricalApplianceforatotalofRMB1,748,701,986.12.
②ThesubsidiaryEconTechnologypledgedRMB100millionasashort-termloanofRMB197,334,403.46fromYantaiDevelopmentZoneSub-branchofIndustrialBank.ThesubsidiaryoftheCompany,EconTechnologypledgedRMB75,000,000.00asashort-termloanofRMB146,844,242.32fromYantaiBranchofZheshangBankCo.,Ltd.
③ThesubsidiaryXingdaHongyeobtainedashort-termloanofRMB95,000,000.00fromtheFushaSub-branchofZhongshanRuralCommercialBankwithaplantvaluedatRMB42,539,797.98,alanduserightmortgageofRMB14,751,768.38,andapledgeofRMB19,800,000.00.④ThesubsidiaryXingdaHongyeobtainedashort-termloanofRMB60,000,000.00fromZhongshanBranchofIndustrialBankbymortgageofadormitorywithabookvalueofRMB9,558,746.57andlanduserightsofRMB11,347,408.99.TheCompanyprovidesjointliabilityguarantee.
⑤ThesubsidiaryBoluoPrecisionobtainedashort-termloanofRMB5,016,900.00fromHuizhouBranchofGuangzhouBankwiththerealestateofBoluoKonka’sbookvalueofRMB8,272,321.05ascollateral.TheCompanyprovidesjointliabilityguarantee.
25.NotesPayable
Category
| Category | Endingbalance | Beginningbalance |
| Tradeacceptancebill | 810,695,199.05 | 1,136,168,273.60 |
| Bankacceptancebill | 151,792,189.06 | 183,228,100.77 |
| Total | 962,487,388.11 | 1,319,396,374.37 |
26.AccountsPayable
(1)ListofAccountsPayable
| Item | Endingbalance | Beginningbalance |
| Within1year | 4,503,874,994.44 | 4,589,056,681.97 |
| 1to2years | 701,748,839.90 | 1,000,925,754.57 |
| 2to3years | 173,690,023.73 | 165,360,015.84 |
| Over3years | 42,781,015.17 | 42,480,027.22 |
| Total | 5,422,094,873.24 | 5,797,822,479.60 |
(2)SignificantAccountsPayableAgingoverOneYear
| Item | Endingbalance | Unpaid/Un-carry-overreason |
Item
| Item | Endingbalance | Unpaid/Un-carry-overreason |
| Projectfunds | 764,509,651.35 | Notmeetthesettlementconditions |
| Total | 764,509,651.35 |
27.ContractLiabilities
| Item | Endingbalance | Beginningbalance |
| Advancesalesproceeds | 848,237,128.69 | 959,538,151.80 |
| Total | 848,237,128.69 | 959,538,151.80 |
28.PayrollPayable
(1)ListofPayrollPayable
Item
| Item | Beginningbalance | Increase | Increasedbymerger | Decrease | Decreasedbylosingcontrollingright | Endingbalance |
| I.Short-termsalary | 422,361,193.20 | 722,860,690.90 | - | 861,834,687.50 | 1,883,363.25 | 281,503,833.35 |
| II.Post-employmentbenefit-definedcontributionplans | 3,408,038.58 | 33,559,216.43 | - | 33,288,518.04 | - | 3,678,736.97 |
| III.Terminationbenefits | 1,101,266.80 | 9,763,708.43 | - | 9,947,390.43 | - | 917,584.80 |
| IV.Currentportionofotherbenefits | - | - | - | - | - | - |
| Total | 426,870,498.58 | 766,183,615.76 | - | 905,070,595.97 | 1,883,363.25 | 286,100,155.12 |
(2)ListofShort-termSalary
| Item | Beginningbalance | Increase | Increasedbymerger | Decrease | Decreasedbylosingcontrollingright | Endingbalance |
| 1.Salary,bonus,allowance,subsidy | 407,335,502.77 | 647,775,260.39 | - | 794,220,943.45 | 1,827,606.88 | 259,062,212.83 |
| 2.Employeewelfare | 5,147,293.66 | 28,132,376.46 | - | 24,387,206.20 | 43,955.32 | 8,848,508.60 |
| 3.Socialinsurance | 3,211,419.29 | 21,765,929.10 | - | 20,272,949.53 | - | 4,704,398.86 |
Item
| Item | Beginningbalance | Increase | Increasedbymerger | Decrease | Decreasedbylosingcontrollingright | Endingbalance |
| Ofwhich:Medicalinsurancepremiums | 289,685.48 | 18,631,963.42 | - | 17,646,878.43 | - | 1,274,770.47 |
| Work-relatedinjuryinsurance | 39,991.73 | 799,394.63 | - | 776,386.85 | - | 62,999.51 |
| Maternityinsurance | 2,881,742.08 | 2,334,571.05 | - | 1,849,684.25 | - | 3,366,628.88 |
| 4.Housingfund | 604,087.40 | 17,097,331.06 | - | 16,524,875.04 | - | 1,176,543.42 |
| 5.Laborunionbudgetandemployeeeducationbudget | 5,237,407.88 | 6,334,435.48 | - | 4,524,911.37 | 11,801.05 | 7,035,130.94 |
| 6.Short-termabsencewithpayment | - | - | - | - | - | |
| 7.Short-termprofitsharingplan | - | - | - | - | - | |
| 8.Other | 825,482.20 | 1,755,358.41 | - | 1,903,801.91 | - | 677,038.70 |
| Total | 422,361,193.20 | 722,860,690.90 | - | 861,834,687.50 | 1,883,363.25 | 281,503,833.35 |
(3)ListofDefinedContributionPlan
| Item | Beginningbalance | Increase | Increasedbymerger | Decrease | Decreasedbylosingcontrollingright | Endingbalance |
Item
| Item | Beginningbalance | Increase | Increasedbymerger | Decrease | Decreasedbylosingcontrollingright | Endingbalance |
| 1.Basicpensionbenefits | 3,353,470.05 | 32,631,775.16 | - | 32,386,622.52 | - | 3,598,622.69 |
| 2.Unemploymentinsurance | 54,568.53 | 927,441.27 | - | 901,895.52 | - | 80,114.28 |
| 3.Annuity | - | - | - | - | - | |
| Total | 3,408,038.58 | 33,559,216.43 | - | 33,288,518.04 | - | 3,678,736.97 |
TheCompany,inlinewiththerequirement,participatetheendowmentinsurance,unemploymentinsuranceschemeandsoon,accordingtothescheme,theCompanymonthlypaytotheschemeinlinewithrequirementsoflocalgovernment,exceptthemonthlypayment,theCompanynolongershoulderthefurtherpaymentobligation,therelevantexpenseoccurredwasrecordedintocurrentprofitsandlossesorrelatedassetscosts.
29.TaxesPayable
Item
| Item | Endingbalance | Beginningbalance |
| Corporateincometax | 131,332,803.11 | 341,818,196.88 |
| VAT | 41,715,788.48 | 197,795,056.62 |
| Fundfordisposingabandonedappliancesandelectronicproducts | 17,784,072.00 | 22,862,428.00 |
| Urbanmaintenanceandconstructiontax | 1,369,031.37 | 12,363,121.25 |
| EducationfeesandlocaleducationSurcharge | 1,071,813.74 | 9,346,458.05 |
| Individualincometax | 3,536,475.35 | 7,468,808.32 |
| Stampduty | 1,681,846.43 | 5,046,657.96 |
| Landusetax | 4,960,696.77 | 3,587,908.55 |
| Realestatetax | 4,873,655.39 | 2,868,061.86 |
| Tariff | 2,572,685.47 | 2,440,099.93 |
| Other | 699,308.55 | 2,248,497.57 |
| Total | 211,598,176.66 | 607,845,294.99 |
30.OtherPayables
| Item | Endingbalance | Beginningbalance |
| Interestpayable | 217,842,648.33 | 227,831,108.53 |
| Dividendpayable | 120,397,270.40 | 0.00 |
| Otherpayables | 2,172,875,217.30 | 2,061,898,199.65 |
| Total | 2,511,115,136.03 | 2,289,729,308.18 |
30.1InterestPayable
| Item | Endingbalance | Beginningbalance |
| Interestoncorporatebonds | 130,673,055.64 | 180,268,944.49 |
| Interestonlong-termborrowingswithinterestpaidbyinstallmentandprincipalpaidatmaturity | 69,552,621.66 | 27,783,745.85 |
| Interestpayableonshort-termborrowings | 17,349,825.98 | 19,189,933.23 |
| Other | 267,145.05 | 588,484.96 |
| Total | 217,842,648.33 | 227,831,108.53 |
30.2dividendpayable
| Item | Endingbalance | Beginningbalance |
Item
| Item | Endingbalance | Beginningbalance |
| Dividendofordinaryshares | 120,397,270.40 | |
| Total | 120,397,270.40 |
30.3OtherPayables
(1)ListedbyNatureofAccount
| Item | Endingbalance | Beginningbalance |
| Expensespayable | 832,988,866.73 | 862,838,016.73 |
| Come-and-gomoney | 190,629,939.60 | 162,935,213.66 |
| Equitytransferpayment | 263,223,100.00 | 374,725,896.96 |
| Relatedpartyborrowing | 523,285,133.06 | 374,227,833.11 |
| Frontmoneyandguaranteedeposit | 322,765,251.09 | 260,078,756.86 |
| Paymentonbehalf | 13,297,901.20 | 13,789,615.70 |
| Other | 26,685,025.62 | 13,302,866.63 |
| Total | 2,172,875,217.30 | 2,061,898,199.65 |
(2)OtherSignificantPayablesAgingoverOneYear
| Item | Endingbalance | Unpaid/Un-carry-overreason |
| EquitytransfermoneyofEconTechnology | 192,500,000.00 | Notmeetthesettlementconditions |
| EquitytransfermoneyofJiangxiKonka | 61,180,000.00 | Notmeetthesettlementconditions |
| Total | 253,680,000.00 | — |
31.CurrentPortionofNon-currentLiabilities
| Item | Endingbalance | Beginningbalance |
| Currentportionoflong-termborrowings | 122,000,000.00 | 123,000,000.00 |
| Currentportionoflong-termpayables | 34,936,974.97 | 87,066,077.13 |
| Total | 156,936,974.97 | 210,066,077.13 |
32.Long-termBorrowings
| Category | Endingbalance | Beginningbalance |
| Entrustedloans(note①) | 834,060,000.00 | 3,334,060,000.00 |
| Pledgeloan(note②③④⑤) | 1,490,307,485.22 | 1,088,300,000.00 |
Category
| Category | Endingbalance | Beginningbalance |
| Creditloan | 322,000,000.00 | 123,000,000.00 |
| Mortgageguaranteeloan(note⑥) | 116,319,401.85 | 103,995,729.90 |
| Guaranteedloan(note⑦) | 2,000,000,000.00 | |
| Mortgageguaranteeloan(note⑧⑨⑩?) | 959,860,000.00 | 133,960,000.00 |
| Guaranteemortgagepledgeloan(note?) | 100,000,000.00 | 230,000,000.00 |
| Less:Currentportion | 122,000,000.00 | 123,000,000.00 |
| Total | 5,700,546,887.07 | 4,890,315,729.90 |
Note:
①TheOCTGroupastheparentoftheCompanyissuedentrustedloansofRMB834,060,000.00totheCompanythroughtheChinaMerchantsBank.Theloanperiodisfrom25October2019to9December2022.②DonggangKangrun,thesubsidiary,tooktheoperatingincomeandotherincomeofthePPPprojectofDonggangCityInlandComprehensiveTreatmentProjectasapledgetoobtainalong-termloanofRMB600,000,000.00fromDonggangSub-branchofChinaConstructionBank.Theloanperiodisfrom31January2019to30January2036.③ThesubsidiaryFunanKangrunobtainedalong-termloanofRMB465,000,000.00fromtheChinaFunanCountySub-branchofAgriculturalBankofChinawiththefeasibilitygapsubsidyunderthewholeareasewagetreatmentprojectofFunanCountyandgovernmentpaymentaspledge.Theloanperiodisfrom23August2019to22August2039.④WeifangSihai,thesubsidiaryoftheCompany,obtainedthelong-termloanofRMB313,300,000.00fromWeifangBranchofIndustrialBankthroughpledgingtheaccountsreceivableformedfromalltheproceedsandincomerightsoftheWeifangBinhaiEconomicDevelopmentZoneproject.Theloanperiodisfrom26June2019to25June2035.⑤LairunSewage,thesubsidiaryoftheCompany,obtainedthelong-termloanofRMB112,007,485.22fromYantaiBranchofPostalSavingsBankofChinathroughpledgingtheaccountsreceivablesformedfromalltheproceedsandincomerightsofLaizhouSecondSewageTreatmentPlantproject.Theloanperiodisfrom17January2020to16January2040.⑥TheCompanytooktheGuangmingprojectlanduserightswithcarryingvalueofRMB13,237,669.89ascollateraltoobtainalong-termloanofRMB116,319,401.85fromShenzhenBranchofGuangdongHuaxingBank.Theloanperiodisfrom12April2019to11April2024.⑦TheCompanyobtainedthelong-termloanofRMB2,000,000,000.00fromShenzhenBranchofExport-ImportBankofChina.Theloanperiodisfrom22June2020to24June2022,andthe
OCTGroupastheparentoftheCompanyprovidesjointliabilityguarantee.⑧ThesubsidiaryRushanYikepledgedlong-termaccountsreceivablewithcarryingvalueofRMB349,314,656.44toobtainalong-termloanofRMB131,360,000.00fromYantaiEconomicDevelopmentZoneBranchofChinaEverbrightBank.Theloanperiodisfrom29December2016to28December2026,andthesubsidiaryYikangTechnologyprovidesjointliabilityguarantee.⑨ThesubsidiaryWuhanRunyuanobtainedthelong-termloanofRMB258,000,000.00fromWuhanDongxihuDistrictSub-branchofAgriculturalDevelopmentBankofChinathroughpledgingtheaccountsreceivableformedfromalltheproceedsandincomerightsofHuangpiDistrictRuralSewageTreatmentproject.Theloanperiodisfrom20January2020to19January2040,andthesubsidiaryEconTechnologyprovidesdeficiencypaymentguarantee.⑩ThesubsidiarySubeiKangrunobtainedthelong-termloanofRMB516,000,000.00fromWuhanDunhuangSub-branchofAgriculturalDevelopmentBankofChinathroughpledgingtheaccountsreceivableformedfromalltheproceedsandincomerightsofSubeiMazongshanproject.Theloanperiodisfrom10March2020to9March2035,andthesubsidiaryEconTechnologyprovidesjointliabilityguarantee.?ThesubsidiaryDayiKangrunobtainedthelong-termloanofRMB54,500,000.00fromChengduQinglongSub-branchofIndustrialandCommercialBankofChinathroughpledgingtheaccountsreceivableformedfromalltheproceedsandincomerightsofDayiIndustrialSewageandRecycledWaterTreatmentPlantproject.Theloanperiodisfrom29April2020to10April2035,andthesubsidiaryEconTechnologyprovidesjointliabilityguarantee.?ThesubsidiarySichuanKonkatookthelanduserightswithabookvalueofRMB13,674,951.59ascollateraltoobtainalong-termloanofRMB100,000,000.00fromSichuanGangrongInvestmentDevelopmentGroupCo.,Ltd.Theloanperiodisfrom8May2018to24May2025,andthesubsidiaryCommunicationTechnologyprovidesjointliabilityguaranteeforthisloan.
33.BondsPayable
(1)ListofBondsPayable
Item
| Item | Endingbalance | Beginningbalance |
| Non-publicofferingcorporatebonds | 4,990,461,215.98 | 4,987,709,643.64 |
| Total | 4,990,461,215.98 | 4,987,709,643.64 |
(2)Increase/DecreaseofBondsPayable
| Bondsname | Parvalue | Issuingdate | Duration | Issuingamount | Beginningbalance |
| 19Konka01(note①) | 1,000,000,000.00 | 2019/1/14 | 2+1years | 996,500,000.00 | 997,798,742.17 |
| 19Konka02(note②) | 1,500,000,000.00 | 2019/1/14 | 3years | 1,494,750,000.00 | 1,496,698,113.21 |
Bondsname
| Bondsname | Parvalue | Issuingdate | Duration | Issuingamount | Beginningbalance |
| 19Konka03(note③) | 500,000,000.00 | 2019/6/3 | 2+1years | 498,250,000.00 | 498,670,073.37 |
| 19Konka04(note④) | 500,000,000.00 | 2019/6/3 | 3years | 498,250,000.00 | 498,670,073.37 |
| 19Konka05(note⑤) | 800,000,000.00 | 2019/7/22 | 2+1years | 797,200,000.00 | 797,798,742.14 |
| 19Konka06(note⑥) | 700,000,000.00 | 2019/7/22 | 3years | 697,550,000.00 | 698,073,899.38 |
| Total | 5,000,000,000.00 | 4,982,500,000.00 | 4,987,709,643.64 |
(Continued)
| Bondsname | Increasedthroughmerger | IssuedduringtheReportingPeriod | Withdrawinterestatfacevalue | Amortizationofpremiumanddiscount | RepayduringtheReportingPeriod | Endingbalance |
| 19Konka01(note①) | 25,277,777.78 | 550,314.48 | 998,349,056.65 | |||
| 19Konka02(note②) | 37,916,666.67 | 825,471.72 | 1,497,523,584.93 | |||
| 19Konka03(note③) | 11,375,000.00 | 275,157.24 | 498,945,230.61 | |||
| 19Konka04(note④) | 11,880,555.56 | 275,157.24 | 498,945,230.61 | |||
| 19Konka05(note⑤) | 18,321,333.33 | 440,251.56 | 798,238,993.70 | |||
| 19Konka06(note⑥) | 16,632,777.78 | 385,220.10 | 698,459,119.48 | |||
| Total | 121,404,111.12 | 2,751,572.34 | - | 4,990,461,215.98 |
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
| Item | Endingbalance | Beginningbalance |
| Accruedfinancingleaseoutlay | 649,589,655.87 | 519,416,941.74 |
| Including:unrecognizedfinancingexpense | 66,162,709.29 | 49,063,759.99 |
| Less:Currentportion | 34,936,974.97 | 87,066,077.13 |
| Total | 548,489,971.61 | 383,287,104.62 |
35.Long-termPayrollPayable
| Item | Endingbalance | Beginningbalance |
| I.Terminationbenefits-netliabilitiesofdefinedcontributionplans | 5,326,969.34 | 5,565,646.72 |
| II.Terminationbenefits | ||
| III.Otherlong-termwelfare | ||
| Total | 5,326,969.34 | 5,565,646.72 |
36.Provisions
| Item | Beginningbalance | Endingbalance | Reasonforformation |
| Pendinglitigations | 78,957,394.20 | 84,557,935.02 | |
| Salesreturnpayable | 14,578,046.61 | 16,726,801.27 | |
| Other | 206,591.51 | 206,591.51 | |
| Total | 93,742,032.32 | 101,491,327.80 |
37.DeferredIncome
(1)CategoryofDeferredIncome
Item
| Item | Beginningbalance | Increase | Decrease | Endingbalance | Reasonforformation |
| Governmentgrants | 151,874,258.45 | 33,729,384.46 | 22,405,878.36 | 163,197,764.55 | Relatedtoassets/income |
| Total | 151,874,258.45 | 33,729,384.46 | 22,405,878.36 | 163,197,764.55 |
(2)ListofGovernmentGrants
| Governmentgrant | Beginningbalance | Newamountintheperiod | Amountchargedtonon-operatingincomeintheperiod | Amountchargedtootherincomeintheperiod | Amountoffsettingcost/expenseintheperiod | Otherchanges | Endingbalance | Asset/income-related |
| SubsidyforconstructionofYibinfactoryofYibinKonkaIndustrialPark | 56,943,815.54 | 16,035,384.46 | - | - | - | - | 72,979,200.00 | Asset-related |
| SubsidyforDualHDROLEDSmartTVR&Dandindustrializationproject | 13,300,000.00 | - | - | - | - | - | 13,300,000.00 | Asset-related |
| SubsidyforthesmartTVindustrialchainprojectofKonkaGroupCo.,Ltd. | 10,860,500.00 | - | - | 2,247,000.00 | - | - | 8,613,500.00 | Asset-related |
| OperatingsubsidyforKonkaZhifuLifeScienceInnovationCenterproject | 6,500,000.14 | - | - | 999,999.96 | - | - | 5,500,000.18 | Asset-related |
| SubsidyforKonkaYibinIntelligentTerminalInnovationCenterIncubationProject | 6,000,000.00 | - | - | 6,000,000.00 | - | - | - | Asset-related |
Governmentgrant
| Governmentgrant | 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 | 3,798,349.54 | - | - | 990,873.78 | - | - | 2,807,475.76 | Asset-related |
| SubsidyforKonkasmarthomecloudsmartcontrolplatformconstructionproject | 2,896,000.04 | - | - | 2,896,000.04 | - | - | - | Asset-related |
| CapitalsubsidyforShenzhenEconomyandTradeandInformatizationCommittee2015ShenzhenIndustrialDesignCenter | 2,550,000.00 | - | - | 1,080,000.00 | - | - | 1,470,000.00 | Asset-related |
| SubsidyforKonkanext-generationmulti-mediaterminaltechnologyengineeringlabproject | 2,500,000.10 | - | - | 499,999.98 | - | - | 2,000,000.12 | Asset-related |
| Postgrantfor2016IndustrialEnterpriseTechnologicalRenovation | 2,187,360.00 | - | - | 273,420.00 | - | - | 1,913,940.00 | Asset-related |
| SubsidyforNB-IOT-baseddisplayterminalsmartfactorynewmodelproject | 2,184,000.00 | - | - | 409,500.00 | - | - | 1,774,500.00 | Asset-related |
| Subsidyfordevelopmentandindustrializationofdigitalproductsthatarecollaborativeandconnected | 2,080,000.04 | - | - | 259,999.98 | - | - | 1,820,000.06 | Asset-related |
| Subsidyfornext-generationhouseholdmulti-mediaterminaltechnologyengineeringlabimprovementproject | 2,000,000.00 | - | - | - | - | - | 2,000,000.00 | Asset-related |
Governmentgrant
| Governmentgrant | 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 | 1,734,662.37 | - | - | 206,245.02 | - | - | 1,528,417.35 | Asset-related |
| SubsidyforIGRS-basedinformationterminalR&Dandindustrializationproject | 1,400,000.00 | - | - | - | - | - | 1,400,000.00 | Asset-related |
| 2017provincialmajorspecificsubsidy | 1,400,000.00 | - | - | 240,000.00 | - | - | 1,160,000.00 | Asset-related |
| Subsidyforbigdatamining-baseduseroperationsystemR&Dandindustrializationproject | 1,320,000.00 | - | - | - | - | - | 1,320,000.00 | Asset-related |
| SubsidyforAVS/DRA-basedterminalandsupportingcorechipR&Dproject | 1,311,333.18 | - | - | 562,000.02 | - | - | 749,333.16 | Asset-related |
| Subsidyfortruethree-dimentionalvideocontinualviewpointreal-timeintegrationandadvancetestingproject | 1,277,999.98 | - | - | 142,000.02 | - | - | 1,135,999.96 | Asset-related |
| Subsidyformodulewhole-machineintegrationproject | 1,275,000.00 | - | - | 150,000.00 | - | - | 1,125,000.00 | Asset-related |
| SubsidyformobileintelligentterminalnewapplicationservicesystemR&Dandindustrializationproject | 1,265,783.60 | - | - | 367,059.96 | - | - | 898,723.64 | Asset-related |
Governmentgrant
| Governmentgrant | 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 | 1,200,000.00 | - | - | 300,000.00 | - | - | 900,000.00 | Asset-related |
| Subsidyforsuper-shortfocuslaserprojectingsmartTVR&Dproject | 1,075,000.00 | - | - | 815,000.00 | - | - | 260,000.00 | Asset-related |
| Subsidyforbuilt-inoperationsystemforTVapplicationR&Dproject | 1,033,110.10 | - | - | 229,579.98 | - | - | 803,530.12 | 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 | 916,879.90 | - | - | 114,610.02 | - | - | 802,269.88 | Asset-related |
| 2010-2012industrialtechnologyspecificsubsidy | 840,000.00 | - | - | 210,000.00 | - | - | 630,000.00 | Asset-related |
| SubsidyformobileintelligentterminalinformationsecuritysystemkeytechnologyR&Dproject | 835,187.04 | - | - | 240,000.00 | - | - | 595,187.04 | Asset-related |
| Specificsubsidyforbusinessrestructuring | 799,999.80 | - | - | 100,000.02 | - | - | 699,999.78 | Asset-related |
Governmentgrant
| Governmentgrant | Beginningbalance | Newamountintheperiod | Amountchargedtonon-operatingincomeintheperiod | Amountchargedtootherincomeintheperiod | Amountoffsettingcost/expenseintheperiod | Otherchanges | Endingbalance | Asset/income-related |
| 2018AnhuiProvinceroboticsspecificsubsidy | 780,000.00 | - | - | 90,000.00 | - | - | 690,000.00 | Asset-related |
| Subsidyfordual-channelnew3DsmartTVR&Dandindustrializationproject | 778,166.79 | - | - | 202,999.98 | - | - | 575,166.81 | Asset-related |
| Postfiscalsubsidyfor2016industrialenterprisetechnologicalrenovation | 733,480.08 | - | - | 91,684.98 | - | - | 641,795.10 | Asset-related |
| Subsidyformultipleviewpointhigh-definitionnuke-eye3DsmartLCDTVproject | 675,000.00 | - | - | 150,000.00 | - | - | 525,000.00 | Asset-related |
| Subsidyfornewman-machineinteractionsmartTVR&Dandindustrializationproject | 525,689.15 | - | - | 525,689.15 | - | - | - | Asset-related |
| Subsidyforthree-networksintegrationsmartTVandsystemsupportplatformproject | 266,666.84 | - | - | 199,999.98 | - | - | 66,666.86 | Asset-related |
| AnhuiProvinceTechnologyOfficeR&Ddevicessubsidy | 176,250.00 | - | - | 22,500.00 | - | - | 153,750.00 | Asset-related |
| Subsidyfor3DTVterminaldevelopmentandindustrializationproject | 108,333.15 | - | - | 108,333.15 | - | - | - | Asset-related |
| Equipmentsubsidyfortechnicaltransformationprojecttostrengtheningfoundationbyindustry | 490,000.00 | - | 49,000.02 | - | - | 440,999.98 | Asset-related | |
| NB-IOT-baseddisplayterminalsmartfactorynewmodelproject | 4,095,000.00 | - | 273,000.00 | - | - | 3,822,000.00 | Asset-related | |
| Guidancefundforoveralldevelopment | 12,700,000.00 | - | - | - | - | 12,700,000.00 | Asset-related |
Governmentgrant
| Governmentgrant | Beginningbalance | Newamountintheperiod | Amountchargedtonon-operatingincomeintheperiod | Amountchargedtootherincomeintheperiod | Amountoffsettingcost/expenseintheperiod | Otherchanges | Endingbalance | Asset/income-related |
| Otherasset-relatedgovernmentgrants | 5,095,691.07 | 409,000.00 | - | 1,352,665.06 | 6,717.26 | - | 4,145,308.75 | Asset-related |
| Total | 151,874,258.45 | 33,729,384.46 | - | 22,399,161.10 | 6,717.26 | - | 163,197,764.55 |
38.OtherNon-currentLiabilities
Item
| Item | Endingbalance | Beginningbalance |
| Advancesalesproceeds | 106,356,896.20 | 117,318,235.28 |
| Total | 106,356,896.20 | 117,318,235.28 |
39.ShareCapital
| Item | Beginningbalance | Increase/decrease(+/-) | Endingbalance | ||||
| Newsharesissued | Bonusshares | Bonusissuefromprofit | Other | Subtotal | |||
| Thesumofshares | 2,407,945,408.00 | 2,407,945,408.00 | |||||
40.CapitalReserves
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Capitalpremium | ||||
| Othercapitalreserves | 230,368,577.09 | 230,368,577.09 | ||
| Total | 230,368,577.09 | 230,368,577.09 |
41.OtherComprehensiveIncome
Item
| 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 | -11,640,922.52 | 1,158,124.63 | - | - | - | -316,704.47 | 1,474,829.10 | -11,957,626.99 |
| Ofwhich:Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | -2,397,350.96 | - | -2,397,350.96 | |||||
| Differencesarisingfromthetranslationofforeigncurrencydenominatedfinancialstatements | -9,243,571.56 | 1,158,124.63 | -316,704.47 | 1,474,829.10 | -9,560,276.03 | |||
| Total | -21,293,103.52 | 1,158,124.63 | - | - | - | -316,704.47 | 1,474,829.10 | -21,609,807.99 |
42.SurplusReserves
Item
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Statutorysurplusreserves | 973,502,519.62 | 973,502,519.62 | ||
| Discretionalsurplusreserves | 238,218,590.05 | 238,218,590.05 | ||
| Total | 1,211,721,109.67 | 1,211,721,109.67 |
43.RetainedEarnings
| Item | ReportingPeriod | Lastyear |
| Endingbalanceoflastyear | 4,239,763,606.89 | 4,271,408,192.21 |
| Add:Totalbeginningbalanceofretainedearningsbeforeadjustments | -2,884,254.62 | |
| Ofwhich:Changesofaccountingpolicies | -2,884,254.62 | |
| Otheradjustmentfactors | ||
| BeginningbalanceoftheReportingPeriod | 4,239,763,606.89 | 4,268,523,937.59 |
| Add:NetprofitattributabletoownersoftheCompanyastheparent | 94,701,792.63 | 212,034,210.08 |
| Less:Withdrawalofstatutorysurplusreserves | ||
| Withdrawalofdiscretionalsurplusreserves | ||
| Dividendofordinarysharespayable | 120,397,270.40 | 240,794,540.78 |
| Endingbalanceofthisyear | 4,214,068,129.12 | 4,239,763,606.89 |
44.OperatingRevenueandCostofSales
(1)OperatingRevenueandCostofSales
| Item | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Mainoperations | 17,233,552,849.87 | 16,069,773,569.48 | 25,704,875,805.21 | 24,429,634,915.92 |
| Otheroperations | 290,631,046.87 | 199,219,863.40 | 331,567,008.63 | 244,407,455.21 |
| Total | 17,524,183,896.74 | 16,268,993,432.88 | 26,036,442,813.84 | 24,674,042,371.13 |
(2)MainOperations(Classifiedbyproduct)
| Item | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| ColorTVbusiness | 3,218,278,547.14 | 2,742,839,819.16 | 3,844,847,424.42 | 3,596,446,860.11 |
Item
| Item | ReportingPeriod | Sameperiodoflastyear | ||
| whitegoodsbusiness | 1,918,628,399.97 | 1,650,949,066.11 | 1,637,709,425.79 | 1,345,643,531.66 |
| Environmentalprotectionbusiness | 1,498,623,593.33 | 1,337,882,701.47 | 4,863,145,443.76 | 4,524,853,380.07 |
| Supplychaintradingbusiness | 9,566,197,970.86 | 9,423,055,276.96 | 14,549,000,969.03 | 14,359,602,494.69 |
| Semiconductorbusiness | 223,849,167.50 | 213,510,864.28 | 118,013,037.16 | 116,110,617.46 |
| Other | 807,975,171.07 | 701,535,841.50 | 692,159,505.05 | 486,978,031.93 |
| Total | 17,233,552,849.87 | 16,069,773,569.48 | 25,704,875,805.21 | 24,429,634,915.92 |
45.TaxesandSurtaxes
| Item | ReportingPeriod | Sameperiodoflastyear |
| Urbanmaintenanceandconstructiontax | 4,563,133.76 | 7,641,459.23 |
| Stampduty | 7,525,016.46 | 7,399,945.90 |
| Landusetax | 7,726,576.91 | 9,986,924.23 |
| Propertytax | 4,474,412.24 | 4,863,382.63 |
| Educationsurcharge | 2,110,616.64 | 3,628,856.00 |
| Localeducationsurcharge | 1,407,025.70 | 2,800,185.32 |
| Waterresourcesfund | 75,715.03 | 105,188.20 |
| Others | 1,301,943.62 | 963,150.76 |
| Total | 29,184,440.36 | 37,389,092.27 |
46.SellingExpense
| Item | ReportingPeriod | Sameperiodoflastyear |
| Salary | 206,209,082.36 | 153,382,205.33 |
| Advertisingexpense | 269,906,176.77 | 193,996,682.54 |
| Promotionalactivities | 109,821,424.32 | 276,681,334.75 |
| LogisticFee | 186,463,203.90 | 179,648,240.35 |
| Warrantyfee | 84,742,647.02 | 122,339,314.15 |
| Taxesandfund | 26,313,964.00 | 333.90 |
| Exhibitionexpenses | 7,513,097.13 | 13,239,462.76 |
Item
| Item | ReportingPeriod | Sameperiodoflastyear |
| Businesstravelcharges | 8,381,930.49 | 18,079,398.08 |
| Rentalcharges | 13,266,655.00 | 15,818,675.70 |
| Businessentertainmentexpenses | 4,916,413.21 | 8,951,109.32 |
| Other | 51,689,787.78 | 85,809,157.48 |
| Total | 969,224,381.98 | 1,067,945,914.36 |
47.AdministrativeExpense
| Item | ReportingPeriod | Sameperiodoflastyear |
| Salary | 177,373,892.49 | 162,542,644.17 |
| Depreciationcharge | 80,326,472.49 | 43,538,977.71 |
| Consultingfees | 64,645,576.61 | 24,651,061.96 |
| Businesstravelcharges | 4,551,426.46 | 6,025,162.39 |
| Patentfee | 17,102,339.81 | 15,993,217.00 |
| Lossonscrapingofinventories | 3,077,371.04 | 9,030,690.19 |
| Water&electricityfees | 4,831,271.94 | 6,809,831.29 |
| Other | 89,007,429.60 | 79,333,057.72 |
| Total | 440,915,780.44 | 347,924,642.43 |
48.DevelopmentCosts
| Item | ReportingPeriod | Sameperiodoflastyear |
| Salary | 138,480,765.54 | 78,671,163.98 |
| Materialdrawingout | 34,228,600.96 | 29,590,093.60 |
| Expensesontrialproductionofnewproducts | 29,020,790.12 | 22,136,520.66 |
| Commissionservicecharge | 16,931,687.24 | |
| Depreciationandamortization | 6,336,461.49 | 5,405,384.18 |
| Informationcharges | 7,451,755.86 | 5,176,565.13 |
| Testingfees | 3,112,198.75 | 2,119,728.64 |
| Water&electricityfees | 816,218.08 | 2,117,684.38 |
| Businesstravelcharges | 817,888.38 | 1,015,830.83 |
| Other | 20,853,219.87 | 10,977,367.54 |
| Total | 258,049,586.29 | 157,210,338.94 |
49.FinanceCosts
| Item | ReportingPeriod | Sameperiodoflastyear |
| Interestexpense | 532,953,584.28 | 529,683,836.52 |
| Less:Interestincome | 124,261,830.72 | 118,673,531.77 |
| Foreignexchangeprofitorloss | -64,612,997.78 | -26,237,313.27 |
| Other | 42,962,110.97 | 29,487,471.55 |
Item
| Item | ReportingPeriod | Sameperiodoflastyear |
| Total | 387,040,866.75 | 414,260,463.03 |
50.OtherIncome
| Sources | ReportingPeriod | Sameperiodoflastyear |
| Supportfund | 147,152,074.00 | 246,506,970.00 |
| Rewardsandsubsidies | 108,968,284.81 | 53,667,833.01 |
| Softwaretaxrebates | 15,323,154.27 | 23,063,806.91 |
| Transferofdeferredincome | 22,399,161.10 | 16,980,258.41 |
| Postsubsidies | 13,633,750.07 | 326,832.56 |
| Landtaxrebates | 7,197,234.18 | 3,186,200.00 |
| L/Cexportsubsidy | 2,990,537.00 | 66,369.00 |
| Other | 430,656.91 | 86,701.47 |
| Total | 318,094,852.34 | 343,884,971.36 |
51.InvestmentIncome
| Item | ReportingPeriod | Sameperiodoflastyear |
| Long-termequityinvestmentincomemeasuredbyequitymethod | 49,858,252.47 | 8,541,274.56 |
| Investmentincomefromdisposaloflong-termequityinvestment | 454,470,348.72 | 274,322,718.19 |
| Investmentincomefromholdingofheld-for-tradingfinancialassets | 3,070,000.00 | -10,285,883.02 |
| Investmentincomefromdisposalofheld-for-tradingfinancialassets | 3,405,333.03 | |
| Dividendincomefromholdingofotherequityinstrumentinvestments | ||
| Incomefromre-measurementofresidualstockrightsatfairvalueafterlosingcontrolpower | 23,788,733.72 | 140,558,288.28 |
| Incomefrompurchaseoffinancialproductsandentrustloans | 29,883,952.37 | 111,257,821.88 |
| Interestincomefromholdingofdebtinstrumentinvestments | 34,216,956.28 | 34,766,808.03 |
| Total | 598,693,576.59 | 559,161,027.92 |
52.GainonChangesinFairValue
| Sources | ReportingPeriod | Sameperiodoflastyear |
| Tradingfinancialliabilities | - | -3,005,381.67 |
| Total | - | -3,005,381.67 |
53.CreditImpairmentLoss
| Item | ReportingPeriod | Sameperiodoflastyear |
Item
| Item | ReportingPeriod | Sameperiodoflastyear |
| Impairmentlossonnotesreceivable | 891,406.18 | |
| Impairmentlossonaccountsreceivable | -35,516,049.10 | -41,432,285.18 |
| Impairmentlossonotherreceivables | -9,133,606.38 | -8,183,816.17 |
| Baddebtlossofprepayment | 4,506,841.30 | 139,877.59 |
| Contractassetsimpairmentloss | -636,099.18 | |
| Total | -39,887,507.18 | -49,476,223.76 |
54.AssetImpairmentLoss
| Item | ReportingPeriod | Sameperiodoflastyear |
| Inventoryfallingpriceloss | -1,985,659.95 | -11,717,767.29 |
| Total | -1,985,659.95 | -11,717,767.29 |
55.AssetDisposalIncome(“－”forloss)
| Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Fixedassetsdisposalincome | -145,717.14 | 199,561,596.99 | -145,717.14 |
| Intangibleassetsdisposalincome | 98,600,000.00 | 94,144,243.65 | 98,600,000.00 |
| Total | 98,454,282.86 | 293,705,840.64 | 98,454,282.86 |
56.Non-operatingIncome
(1)ListofNon-operatingIncome
Item
| Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Compensationandpenaltyincome | 1,480,648.26 | 10,431,951.61 | 1,480,648.26 |
| GovernmentsubsidiesunrelatedtothenormaloperationoftheCompany | 3,000,000.00 | 3,000,000.00 | |
| Gainsondebtrestructuring | 377,094.96 | 377,094.96 | |
| Other | 3,804,030.26 | 11,837,490.48 | 3,804,030.26 |
| Total | 8,661,773.48 | 22,269,442.09 | 8,661,773.48 |
(1)Ofwhich,governmentsubsidiesrecordedintocurrentprofitorloss:
| Item | Distributionentity | Distributionreason | Nature | Whethersubsidiesinfluencethecurrentprofitsandlossesornot | Specialsubsidyornot | ReportingPeriod | Sameperiodoflastyear | Relatedtoassets/relatedtoincome |
| ImportandExportBaseprojectofChongqingKonka | BureauofFinanceofBishanDistrict,Chongqing | SubsidygrantingforcarryingoutimportandexportbusinessinChongqing | Subsidy | Not | Not | 3,000,000.00 | - | Relatedtoincome |
| Total | 3,000,000.00 |
57.Non-operatingExpense
Item
| Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedintothecurrentnon-recurringprofitorloss |
| Lossesondamageandscrapingofnon-currentassets | 867,633.27 | 660,874.41 | 867,633.27 |
| Compensationexpense | 0.00 | 4,603.40 | 0.00 |
| Other | 6,269,242.08 | 2,804,263.70 | 6,269,242.08 |
| Total | 7,136,875.35 | 3,469,741.51 | 7,136,875.35 |
58.IncomeTaxExpense
(1)ListsofIncomeTaxExpense
| Item | ReportingPeriod | Sameperiodoflastyear |
| Currentincometaxexpense | 62,167,085.67 | 183,430,349.54 |
| Deferredincometaxexpense | 11,258,436.80 | -173,118,956.35 |
| Total | 73,425,522.47 | 10,311,393.19 |
(2)AdjustmentProcessofAccountingProfitandIncomeTaxExpense
| Item | ReportingPeriod |
| Profitbeforetaxation | 145,669,850.83 |
| Currentincometaxexpenseaccountedatstatutory/applicabletaxrate | 36,417,462.71 |
| Influenceofapplyingdifferenttaxratesbysubsidiaries | 21,418,933.24 |
| Influenceofincometaxbeforeadjustment | -4,290,466.40 |
| Influenceofnon-taxableincome | -22,327,281.16 |
| Influenceofnotdeductablecosts,expensesandlosses | 4,100,718.02 |
| Influenceofdeductablelossofunrecognizeddeferredincometaxassetsinpriorperiod | -13,581,954.99 |
| InfluenceofdeductabletemporarydifferenceordeductablelossesofunrecognizeddeferredincometaxintheReportingPeriod | 42,166,084.23 |
| Changesinthebalanceofdeferredincometaxassets/liabilitiesinpreviousperiodduetoadjustmentoftaxrate | —— |
| Other | 9,522,026.82 |
| Incometaxexpense | 73,425,522.47 |
59.OtherComprehensiveIncomeReferto“NoteVI-41.OtherComprehensiveIncome”fordetails.
60.CashFlowStatement
(1)CashGeneratedfrom/UsedinOtherOperating/Investing/FinancingActivities
1)CashGeneratedfromOtherOperatingActivities
Item
| Item | ReportingPeriod | Sameperiodoflastyear |
| Commercialfactoringaccountsreceived | 700,909,868.83 | 663,814,079.96 |
| Intercoursefunds | 46,698,484.01 | 47,127,011.48 |
| Incomefromgovernmentgrants | 319,790,565.67 | 411,764,189.92 |
| Frontmoneyandguaranteedeposit | 403,296,224.51 | 240,170,401.69 |
| Interestincomefrombankdeposits | 14,105,927.41 | 11,849,162.63 |
| Compensationofsuppliers | 10,463,543.40 | 13,655,189.62 |
| Other | 572,650,607.99 | 760,415,784.75 |
| Total | 2,067,915,221.82 | 2,148,795,820.05 |
2)CashUsedinOtherOperatingActivities
| Item | ReportingPeriod | Sameperiodoflastyear |
| Thecommercialfactoringpayment | 700,000,000.00 | 380,423,237.70 |
| Expenseforcashpayment | 661,630,597.26 | 731,676,310.00 |
| Paymentmadeonbehalf | 10,648,911.81 | 8,037,121.64 |
| Paymentforguaranteedeposit,cashdeposit | 367,885,658.11 | 283,418,660.42 |
| Expenseforbankhandlingcharges | 20,120,952.41 | 16,648,496.25 |
| Other | 229,868,221.99 | 571,732,558.25 |
| Total | 1,990,154,341.58 | 1,991,936,384.26 |
3)CashGeneratedfromOtherInvestingActivities
| Item | ReportingPeriod | Sameperiodoflastyear |
| Recoveryoffinancialproducts | 303,571,732.31 | 653,954,166.67 |
| Recoveryofentrustedloans | 905,185,808.83 | 742,912,711.75 |
| Total | 1,208,757,541.14 | 1,396,866,878.42 |
4)CashUsedinOtherInvestingActivities
| Item | ReportingPeriod | Sameperiodoflastyear |
| Purchaseoffinancialproducts | 700,000,000.00 | |
| Paymentforentrustedloans | 112,700,000.00 | |
| Other | 40,230,416.99 | 33,420.00 |
| Total | 152,930,416.99 | 700,033,420.00 |
5)CashGeneratedfromOtherFinancingActivities
Item
| Item | ReportingPeriod | Sameperiodoflastyear |
| Recoveryofmargindepositpledged | 629,073,059.73 | 50,250,837.50 |
| Financelease | 230,602,970.00 | 100,095,790.00 |
| Entrustedloansreceived | 86,200,000.00 | 200,000,000.00 |
| Total | 945,876,029.73 | 350,346,627.50 |
6)CashUsedinOtherFinancingActivities
| Item | ReportingPeriod | Sameperiodoflastyear |
| Depositasmarginforpledge | 760,536,005.49 | |
| Equitytransferpaid | 111,500,000.00 | |
| Repaymentofentrustedloans | 101,052.05 | 67,293,304.13 |
| Financelease | 144,556,719.67 | 167,576,689.17 |
| Financingexpense | 17,210,477.52 | 30,011,935.42 |
| Total | 1,033,904,254.73 | 264,881,928.72 |
(2)SupplementalInformationforCashFlowStatement
| Item | ReportingPeriod | Sameperiodoflastyear |
| 1.Reconciliationofnetprofittonetcashflowsgeneratedfromoperatingactivities | ||
| Netprofit | 72,244,328.36 | 478,710,766.27 |
| Add:Provisionforimpairmentofassets | 1,985,659.95 | 11,717,767.29 |
| Creditimpairmentloss | 39,887,507.18 | 49,476,223.76 |
| Depreciationoffixedassets,oil-gasassets,andproductivelivingassets | 150,944,828.97 | 174,167,944.26 |
| Amortizationofintangibleassets | 35,300,611.24 | 12,518,556.49 |
| Amortizationoflong-termprepaidexpenses | 50,718,178.66 | 43,303,200.03 |
| Lossesondisposaloffixedassets,intangibleassetsandotherlong-livedassets(gains:negative) | -98,454,282.86 | -293,705,840.64 |
| Lossesonscrapoffixedassets(gains:negative) | 738,614.79 | 467,325.95 |
| Lossesonchangesinfairvalue(gains:negative) | - | 3,005,381.67 |
| Financecosts(gains:negative) | 498,160,321.15 | 442,704,098.64 |
| Investmentloss(gains:negative) | -598,693,576.59 | -559,161,027.92 |
| Decreaseindeferredincometaxassets(gains:negative) | 10,226,485.06 | -176,759,673.67 |
| Increaseindeferredincometaxliabilities(“-”meansdecrease) | -5,187,674.24 | 3,492,398.43 |
| Decreaseininventories(gains:negative) | -228,342,968.29 | -525,393,810.42 |
| Decreaseinaccountsreceivablegeneratedfromoperatingactivities(gains:negative) | -485,454,160.52 | -2,059,798,271.86 |
| Increaseinaccountspayableusedinoperatingactivities(decrease:negative) | -542,846,678.70 | 369,279,048.36 |
| Other | 22,405,878.36 | -16,980,258.41 |
| Netcashgeneratedfrom/usedinoperatingactivities | -1,076,366,927.48 | -2,042,956,171.77 |
| 2.Significantinvestingandfinancingactivitieswithout |
Item
| Item | ReportingPeriod | Sameperiodoflastyear |
| involvementofcashreceiptsandpayments | ||
| Transferofdebttocapital | ||
| Currentportionofconvertiblecorporatebonds | ||
| Fixedassetsleasedinbyfinancing | ||
| 3.Netincrease/decreaseofcashandcashequivalent: | ||
| Endingbalanceofcash | 4,537,905,819.30 | 4,701,245,534.53 |
| Less:Beginningbalanceofcash | 4,493,701,917.22 | 3,434,149,481.72 |
| Add:Endingbalanceofcashequivalents | ||
| Less:Beginningbalanceofcashequivalents | ||
| Netincreaseincashandcashequivalents | 44,203,902.08 | 1,267,096,052.81 |
(3)NetCashReceivefromDisposaloftheSubsidiaries
| Item | Amount |
| CashorcashequivalentsreceivedintheReportingPeriodfromdisposalofsubsidiariesintheCurrentPeriod | 28,000,000.00 |
| Ofwhich:E3info | 28,000,000.00 |
| Less:cashandcashequivalentsheldbysubsidiariesonthedateoflosingcontrolpower | 24,712,706.14 |
| Ofwhich:E3info | 24,712,706.14 |
| Add:CashorcashequivalentsreceivedintheReportingPeriodfromdisposalofsubsidiariesinthepriorperiod | |
| Netcashreceivedfromdisposalofsubsidiaries | 3,287,293.86 |
(4)CashandCashEquivalents
| Item | Endingbalance | Beginningbalance |
| Cash | 4,537,905,819.30 | 4,701,245,534.53 |
| Including:Cashonhand | 21,245.91 | 343,490.38 |
| Bankdepositondemand | 4,537,884,573.39 | 4,700,902,044.15 |
| Endingbalanceofcashandcashequivalents | 4,537,905,819.30 | 4,701,245,534.53 |
61.AssetswithRestrictedOwnershiporRightofUse
| Item | Endingcarryingvalue(RMB) | Reasonforrestriction |
| Monetaryassets | 1,879,566,516.43 | OfwhichRMB1,842,648,357.77wasmargindeposit,whichwaspledgedforloansortoopenbankacceptancebills;RMB17,629,564.81wasfinancialregulatoryaccount; |
Item
| Item | Endingcarryingvalue(RMB) | Reasonforrestriction |
| RMB15,000,000.00wasfixeddepositthatwasunabletodrawinadvanceandRMB4,288,593.85wasrestrictedforotherreasons. | ||
| Notesreceivable | 1,429,985,596.82 | TheCompanypledgedbankacceptancebillswithabookvalueofRMB1,429,985,596.82forcomprehensivefinancingservicessuchasissuingbankacceptancebills,lettersofcredit,guarantees,tradefinance. |
| Fixedassets | 429,770,903.61 | Formortgageloan,financeleaseandmortgageguarantee. |
| Intangibleassets | 63,631,018.81 | Formortgageloanandmortgageguarantee |
| Long-termreceivables | 349,314,656.44 | Forpledgeloan |
| Total | 4,152,268,692.11 |
62.ForeignCurrencyMonetaryItems
(1)ForeignCurrencyMonetaryItems
| Item | Endingforeigncurrencybalance | Exchangerate | EndingbalanceconvertedtoRMB |
| Monetaryassets | |||
| Ofwhich:USD | 122,419,615.98 | 7.0795 | 866,669,671.33 |
| EUR | 45,602.50 | 7.9610 | 363,041.50 |
| EGP | 146,222.06 | 0.4381 | 64,058.11 |
| HKD | 54,653,982.57 | 0.9134 | 49,923,133.84 |
| PLN | 728,972.37 | 1.7877 | 1,303,202.48 |
| CAD | 6.96 | 5.1843 | 36.08 |
| GBP | 1.32 | 8.7144 | 11.50 |
| Accountsreceivable | |||
| Ofwhich:USD | 129,986,393.57 | 7.0795 | 920,238,673.30 |
| HKD | 1,437,417.46 | 0.9134 | 1,312,994.60 |
| AUD | 49,764.00 | 4.8657 | 242,136.69 |
| Otherreceivables | |||
| Ofwhich:USD | 5,931,271.92 | 7.0795 | 41,990,439.56 |
| EGP | 4,127.70 | 0.4381 | 1,808.30 |
| HKD | 454,508.84 | 0.9134 | 415,166.55 |
| JPY | 21,400,000.00 | 0.0658 | 1,408,291.20 |
Item
| Item | Endingforeigncurrencybalance | Exchangerate | EndingbalanceconvertedtoRMB |
| Interestreceivable | |||
| Ofwhich:HKD | 114,822.62 | 7.0795 | 812,886.74 |
| Short-termborrowings | |||
| Ofwhich:USD | 91,974,992.80 | 7.0795 | 651,136,961.53 |
| Accountspayable | |||
| Ofwhich:USD | 29,487,311.29 | 7.0795 | 208,755,420.28 |
| HKD | 374,891.23 | 0.9134 | 342,440.65 |
| Otherpayables | |||
| Ofwhich:EGP | 354,670.00 | 0.4381 | 155,376.63 |
| HKD | 34,843,720.22 | 0.9134 | 31,827,647.80 |
| USD | 3,061,011.27 | 7.0795 | 21,670,429.29 |
| EUR | 32,728.48 | 7.9610 | 260,551.43 |
| Interestpayable | |||
| Ofwhich:USD | 446,662.58 | 7.0795 | 3,162,147.74 |
(2)NotestoOverseasEntitiesThesignificantoverseasentitiesincludeHongKongKonka,KonkaElectricalAppliancesInternationalTrading,ChainKingdomMemoryTechnologies,KangjietongandJialiInternational.ThemainoverseasoperatingplaceisHongKong.TheCompany’srecordingcurrencyisHKDsincethemaincurrencyincirculationinHongKongisHKD.
63.GovernmentGrants
(1)BasicInformationonGovernmentGrants
| Category | Amount | Listeditems | Amountrecordedinthecurrentprofitorloss |
| SupportingfundofChongqingPhotoelectricResearchInstituteBishanproject | 130,000,000.00 | Otherincome | 130,000,000.00 |
| Rewardsandsubsidies | 108,968,284.81 | Otherincome | 108,968,284.81 |
| SupportingfundofSuiningKonkaIndustrialParkSuiningproject | 17,052,074.00 | Otherincome | 17,052,074.00 |
| PlantconstructionsubsidyofYibinKonkaIndustrialParkproject | 16,035,384.46 | Deferredincome | 0.00 |
| Taxrebatesonsoftware | 15,323,154.27 | Otherincome | 15,323,154.27 |
| Postsubsidies | 13,633,750.07 | Otherincome | 13,633,750.07 |
| Landtaxrebates | 7,197,234.18 | Otherincome | 7,197,234.18 |
| L/Cexportsubsidy | 2,990,537.00 | Otherincome | 2,990,537.00 |
Category
| Category | Amount | Listeditems | Amountrecordedinthecurrentprofitorloss |
| Other | 24,266,739.81 | Deferredincome/Otherincome/Non-operatingincome/Financecosts | 6,896,926.63 |
| Total | 335,467,158.60 | 302,061,960.96 |
(2)ReturnofGovernmentGrantsNosuchcasesintheReportingPeriod.VIIChangesofConsolidationScope
1.Asingledisposaloftheinvestmenttothesubsidiaryandlostcontrol
| Nameofthesubsidiary | Theequitydisposalprice | Equitydisposalproportion(%) | Methodofequitydisposal | Timeoflosingcontrol | Recognitionbasisforthetimeoflosingcontrolpower | Thedifferencesofenjoyednetassetsshareofthesubsidiaryincorrespondingconsolidatedstatementsofthedisposalpriceandthedisposalinvestment(RMB’0,000) |
| E3info | 2,800.00 | 20 | Transfer | 2020-6-13 | Therightsandobligationsrelatedtotheunderlyingequityhavebeentransferred | 1,308.09 |
(Continued)
| Nameofthesubsidiary | Residualequityproportiononthedateoflosingcontrolpower(%) | Carryingvalueofresidualequityonthedateoflosingcontrolpower(RMB’0,000) | Fairvalueofresidualequityonthedateoflosingcontrolpower(RMB’0,000) | Gainsorlossesfromre-measurementofresidualequityatfairvalue(RMB’0,000) | Recognitionmethodandmainassumptionoffairvalueofresidualequityonthedateoflosingcontrolpower | Amountofothercomprehensiveincomerelatedtoformersubsidiariestransferredintoinvestmentprofitorloss(RMB’0,000) |
| E3info | 40 | 2,983.83 | 5,600.00 | 2,616.17 | Evaluatedprice |
2.ChangesinCombinationScopeforOtherReasons
(1)SubsidiariesEstablishedbytheCompanyintheReportingPeriod
| Name | Registeredcapital | Shareholdingpercentage(%) | Timeandplaceofobtainingcontrolpower | Methodofobtaining |
| ZhongshanKangxin | 1,000,000.00 | 51.00 | 2020-6-9 | Newlyestablished |
| LiaoyangKangshun | 10,000,000.00 | 100.00 | 2020-5-9 | Newlyestablished |
| NanjingKonkaElectronics | 10,000,000.00 | 100.00 | 2020-6-18 | Newlyestablished |
| GaopingKangrun | 100,000,000.00 | 48.45 | 2020-5-29 | Newlyestablished |
| MengchengKangrun | 100,000,000.00 | 43.35 | 2020-6-19 | Newlyestablished |
| XixianKangrun | 163,780,500.00 | 26.01 | 2020-4-16 | Newlyestablished |
| MeixinSemiconductor | HKD10,000.00 | 51.00 | 2020-4-20 | Newlyestablished |
Name
| Name | Registeredcapital | Shareholdingpercentage(%) | Timeandplaceofobtainingcontrolpower | Methodofobtaining |
| (HongKong) | ||||
| KangxingruiAutoRecovery | 100,000,000.00 | 51.00 | 2020-4-17 | Newlyestablished |
| KonkaXinyun | 100,000,000.00 | 56.00 | 2020-4-17 | Newlyestablished |
| ChongqingKanglei | 50,000,000.00 | 51.00 | 2020-2-27 | Newlyestablished |
| YibinKangrun | 100,000,000.00 | 83.83 | 2020-4-21 | Newlyestablished |
(2)ChangesinCombinationScopeforOtherReasonsThesubsidiaryoftheCompany,YuekangSemiconductor(Yantai)Co.,Ltd.wascancelledanddistributedtheresidualassets.VIIIEquityinOtherEntities
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 | |
| 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 | |
Name
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| 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,Anhui | Chuzhou,Anhui | Manufacturingindustry | 100.00 | Establishmentorinvestment | |
| 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, | HongKong, | Retailindustry | 51.00 | Establishment | |
Name
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| China | China | orinvestment | ||||
| 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 | |
| KonkaCircuit | 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 | |
| HefeiChainKingdom | Hefei,Anhui | Hefei,Anhui | Informationservice | 51.00 | Establishmentorinvestment | |
| KonkaZhisheng | 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 | |
| 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, | Chengdu, | Realestateindustry | 51.00 | Establishment | |
Name
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| Sichuan | Sichuan | orinvestment | ||||
| 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,Guangdong | Zhongshan,Guangdong | Manufacturingindustry | 51.00 | Establishmentorinvestment | |
| 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 | |
Name
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| BeijingEcon | 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 | Environmentaltechnologyserviceindustry | 35.70 | Establishmentorinvestment | |
| 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 | Environmentaltechnologyservice | 32.09 | Establishmentorinvestment | |
Name
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| industry | ||||||
| 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 | |
| YantaiKonkaEnterprise | Yantai,Shandong | Yantai,Shandong | Realestateindustry | 89.71 | Establishmentorinvestment | |
| 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 | |
Name
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| 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)EnvironmentalProtection | Yantai,Shandong | Yantai,Shandong | Comprehensiveutilizationofwasteresourcesindustry | 51.00 | Establishmentorinvestment | |
| 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, | 56.00 | Establishmentorinvestment | |
Name
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| communicationandotherelectronicequipment | ||||||
| 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 | |
| ZhongshanKangxin | Zhongshan,Guangdong | Zhongshan,Guangdong | Manufacturingindustryincomputer,communicationandotherelectronicequipment | 51.00 | Establishmentorinvestment | |
| LiaoyangKangshun | Liaoyang,Liangning | Liaoyang,Liangning | Wholesaleindustry | 100.00 | Establishmentorinvestment | |
| NanjingKonkaElectronics | Nanjing,Jiangsu | Nanjing,Jiangsu | Manufacturingindustryincomputer,communicationandotherelectronicequipment | 100.00 | Establishmentorinvestment | |
| GaopingKangrun | Jincheng,Shanxi | Jincheng,Shanxi | Environmentalprotectionandenvironmentmanagement | 48.45 | Establishmentorinvestment | |
| MengchengKangrun | Bozhou,Anhui | Bozhou,Anhui | Watermanagementindustry | 43.35 | Establishmentorinvestment | |
| XixianKangrun | Xixian,Shaanxi | Xixian,Shaanxi | Publicfacilitymanagementindustry | 26.01 | Establishmentorinvestment | |
| MeixinSemiconductor(HongKong) | HongKong,China | HongKong,China | Semiconductor | 51.00 | Establishmentorinvestment | |
Name
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| KangxingruiAutoRecovery | Chongqing | Chongqing | Wholesaleindustry | 51.00 | Establishmentorinvestment | |
| KonkaXinyun | Shenzhen,Guangdong | Shenzhen,Guangdong | Manufacturingindustryincomputer,communicationandotherelectronicequipment | 56.00 | Establishmentorinvestment | |
| ChongqingKanglei | Chongqing | Chongqing | Manufacturingindustryincomputer,communicationandotherelectronicequipment | 51.00 | Establishmentorinvestment | |
| YibinKangrun | Yibin,Sichuan | Yibin,Sichuan | Retailindustry | 67.00 | 16.83 | Establishmentorinvestment |
Note:TheindirectshareholdingoftheCompanyshallbethepenetrationratioofthesubsidiaryenjoyedbytheCompanyattheconsolidationlevel,andbelongstothefinalequityshareofthesubsidiaryenjoyedbytheCompany.
(2)SignificantNon-wholly-ownedSubsidiary
| Name | Shareholdingproportionofnon-controllinginterests(%) | Theprofitorlossattributabletothenon-controllinginterests | Declaringdividendsdistributedtonon-controllinginterests | Balanceofnon-controllinginterestsattheperiod-end |
| EconTechnology | 49.00% | 61,654,868.25 | 10,513,500.00 | 396,956,475.74 |
| ChainKingdomMemoryTechnology | 49.00% | 5,994,785.74 | - | 56,852,269.47 |
(3)TheMainFinancialInformationofSignificantNotWholly-ownedSubsidiary
Name
| Name | Endingbalance | |||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliability | Totalliabilities | |
| EconTechnology | 3,141,870,035.36 | 4,740,773,957.99 | 7,882,643,993.35 | 4,171,008,807.71 | 2,456,008,359.77 | 6,627,017,167.48 |
| ChainKingdomMemoryTechnology | 1,401,597,591.29 | 191,989.31 | 1,401,789,580.60 | 1,285,764,540.86 | - | 1,285,764,540.86 |
(Continued)
| Name | Beginningbalance | |||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliability | Totalliabilities | |
| EconTechnology | 2,294,719,219.20 | 4,195,654,080.11 | 6,490,373,299.31 | 4,112,410,680.62 | 1,228,550,874.55 | 5,340,961,555.17 |
| ChainKingdomMemoryTechnology | 1,569,773,014.55 | 214,913.75 | 1,569,987,928.30 | 1,468,065,838.78 | - | 1,468,065,838.78 |
Name
| Name | ReportingPeriod | |||
| ReportingPeriod | ReportingPeriod | ReportingPeriod | ReportingPeriod | |
| EconTechnology | 725,770,854.14 | 96,019,839.22 | 96,019,839.22 | -189,595,823.45 |
| ChainKingdomMemoryTechnology | 1,974,917,750.88 | 12,234,256.61 | 14,102,950.22 | -134,524,608.11 |
(Continued)
| Name | Sameperiodoflastyear | |||
| Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
| EconTechnology | 828,589,882.95 | 70,765,359.97 | 70,765,359.97 | 75,375,404.73 |
| ChainKingdomMemoryTechnology | 3,092,530,128.86 | 19,958,624.47 | 20,553,940.68 | -173,282,930.64 |
2.EquityinJointVenturesorAssociatedEnterprises
(1)SignificantJointVenturesorAssociatedEnterprises
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Accountingtreatmentoftheinvestmenttojointventureorassociatedenterprise | |
| 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 | 584,379,292.88 | 295,617,489.77 |
| Non-currentassets | - | 166,399,464.23 |
| Totalassets | 584,379,292.88 | 462,016,954.00 |
| Currentliabilities | 54,237.30 | 70,994,511.21 |
| Non-currentliability | - | - |
| Totalliabilities | 54,237.30 | 70,994,511.21 |
Item
| Item | Endingbalance/ReportingPeriod | |
| DongfangKonkaNo.1(Zhuhai)PrivateEquityInvestmentFund(LP) | BinzhouBeihaiWeiqiaoSolidWasteDisposalCo.,Ltd. | |
| Equityofnon-controllinginterests | ||
| EquityattributabletoshareholdersoftheCompanyastheparent | 584,325,055.58 | 391,022,442.79 |
| Shareofnetassetsaccountedbyshareholdingpercentage | 291,870,365.26 | 191,600,996.97 |
| Carryingvalueofequityinvestmenttoassociatedenterprises | 291,870,365.26 | 191,600,996.97 |
| Operatingrevenue | - | 163,453,970.46 |
| Financecosts | -74,102.12 | -61,449.71 |
| Incometaxexpense | - | - |
| Netprofit | -4,629,057.58 | 112,853,536.78 |
| Netprofitfromdiscontinuedoperations | ||
| Othercomprehensiveincome | ||
| Totalcomprehensiveincome | -4,629,057.58 | 112,853,536.78 |
(Continued)
| Item | Beginningbalance/Sameperiodoflastyear | |
| 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
| 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 | 56,556,521.58 | |
| Financecosts | -11,858.15 | 459,401.85 |
| Incometaxexpense | - | |
| Netprofit | -4,566,094.00 | 42,819,897.86 |
| Netprofitfromdiscontinuedoperations | ||
| Othercomprehensiveincome | ||
| Totalcomprehensiveincome | -4,566,094.00 | 42,819,897.86 |
(3)SummaryFinancialInformationofInsignificantJointVenturesorAssociatedEnterprises
| Item | Endingbalance/ReportingPeriod | Beginningbalance/TheSameperiodoflastyear |
| Associatedenterprise: | ||
| Totalcarryingvalueofinvestment | 3,032,494,392.50 | 3,249,236,533.91 |
| Thetotaloffollowingitemsaccordingtotheshareholdingproportions | ||
| --Netprofit | -4,709,776.64 | -1,220,519.68 |
| --Othercomprehensiveincome | ||
| --Totalcomprehensiveincome | -4,709,776.64 | -1,220,519.68 |
IXTheRiskRelatedtoFinancialInstrumentsTheCompany’smainfinancialinstrumentsincludeborrowings,accountsreceivable,accountspayable,tradingfinancialassetsandliabilities,etc.DetailsofthevariousfinancialinstrumentsareshownintherelevantnotestoAnnotationVI.Risksrelatedtothesefinancialinstruments,and
riskmanagementpoliciestheCompanyhasadoptedtoreducetheserisksaredescribedasfollows.TheCompanymanagementmanagesandmonitorstheriskexposureinordertoensuretheaboveriskstobecontrolledinalimitedscope.ThegoalsoftheCompanyengagedintheriskmanagementistoachievetheproperbalancebetweentherisksandbenefits,reducedthenegativeimpacttotheCompanyoperatingperformancerisktoaminimum,maximizedtheprofitsofshareholdersandotherequityinvestors.Basedontheriskmanagementgoal,thebasicstrategyoftheCompany'sriskmanagementisdetermineandanalyzethevariousrisksfacedbytheCompany,setupthebottomlineofriskandconductedappropriateriskmanagement,andtimelysupervisedvariousrisksinareliablewayandcontrolledtheriskwithintherangeoflimit.
1.MarketRisk
1)ForeignExchangeRiskForeignexchangeriskreferstotherisksthatmayleadtolossesduetofluctuationinexchangerate.TheforeignexchangeriskbornebytheCompanyisrelatedtoUSD.ExcepttheprocurementandsalesbyUSdollarsforseveralsubsidiariesoftheCompany,theothermainbusinessesoftheCompanyweresettledbyRMB.Asof30June2020,exceptfortheassetsorliabilitiesmentionedinthetablebelow,theassetsandliabilitiesoftheCompanyaremainlythebalanceofRMB.TheforeignexchangerisksproducedbytheassetsandliabilitiesbalancemayaffectthebusinessperformanceoftheCompany.
Item
| Item | Period-end | Period-begin |
| Cashandcashequivalents | 122,419,615.98 | 161,346,670.90 |
| Accountsreceivable | 129,986,393.57 | 118,602,602.84 |
| Otherreceivables | 5,931,271.92 | 6,281,335.37 |
| Interestreceivable | 114,822.62 | |
| Short-termborrowings | 91,974,992.80 | 98,297,903.18 |
| Accountspayable | 29,487,311.29 | 42,269,219.38 |
| Otherpayables | 3,061,011.27 | 0.00 |
| Interestpayable | 446,662.58 | 275,923.30 |
Thecompanypayscloseattentiontotheimpactofexchangeratechangesonthecompany'sforeignexchangerisk,andrequiresmajorcompaniesinthegroupthatpurchaseandsellinforeigncurrencytopayattentiontothechangesinforeigncurrencyassetsandliabilities,managethegroup'sforeigncurrencynetassetexposureinaunifiedway,implementsinglecurrencysettlement,andreducethescaleofforeigncurrencyassetsandliabilities,soastoreduceforeignexchangeriskexposure.Undertheconditionthatothervariablesremainunchanged,thepossiblereasonablechangeofexchangeratehasthefollowingpretaximpactonthecurrentprofitandlossandshareholders’
equity:
Item
| Item | Changeininterestrate | Influenceonshareholders’equity |
| NetassetsinUSD | Up1.00%toRMB | 7,087,400.34 |
| NetassetsinUSD | Down1.00%toRMB | -7,087,400.34 |
2)InterestRateRisk-CashFlowChangeRiskTheCompanybearsinterestrateriskduetointerestratechangesofinterestbearingfinancialassetsandliabilities.Thecompany'sinterestbearingfinancialassetsaremainlybankdeposits,ofwhichthevariableinterestrateismostlyshort-term,whiletheinterestbearingfinancialliabilitiesaremainlybankloansandcorporatebonds.On30June2020,theCompany’slong-termbankborrowingsandcorporatebondsarefixedinterestrates.Therefore,itisconsideredthattheriskcausedbythechangeofinterestrateismainlyrelatedtotheshort-termbankborrowings.On30June2020,thebalanceofsuchshort-termborrowingsisRMB11,476,582,374.41.On30June2020,iftheinterestrateofshort-termborrowingsofsuchscalerisesorfallsby50basispointswhileotherfactorsremainunchanged,theCompany’snetprofitwilldecreaseorincreasebyaboutRMB57,382,911.87.On30June2020,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’soperationandmitigatetheimpactofshort-termfluctuationsincashflow.ThefinancialdepartmentoftheCompanyisresponsibleforbalancingthecontinuityandflexibilityoffundsthroughtheuseofbankcredittomeettheneedsoftheCompany’sworkingcapital.Inordertomitigatetheliquidityrisk,themanagementoftheCompanyhascarriedoutadetailedinspectionontheliquidityoftheCompany,includingthematurityofaccountspayableandotherpayables,bankcreditlineandbondfinancing.TheconclusionisthattheCompanyhassufficientfundstomeettheneedsoftheGroup’sshort-termdebtandcapitalexpenditure.XTheDisclosureofFairValue
1.EndingFairValueofAssetsandLiabilitiesatFairValue
Item
| Item | Endingfairvalue | |||
| Fairvaluemeasurementitemsatlevel1 | Fairvaluemeasurementitemsatlevel2 | Fairvaluemeasurementitemsatlevel3 | Total | |
| I.Consistentfairvaluemeasurement | ||||
| (I)Held-for-tradingfinancialassets | ||||
| 1.Financialassetsatfairvaluethroughprofitorloss | ||||
| (1)Debtinstrumentinvestment | ||||
| (2)Equityinstrumentinvestment | ||||
| (3)Derivativefinancialassets | ||||
| (4)Other | ||||
| (II)Accountsreceivablefinancing | 78,865,016.45 | 78,865,016.45 | ||
| (III)Investmentinotherdebtobligations | - | |||
Item
| Item | Endingfairvalue | |||
| Fairvaluemeasurementitemsatlevel1 | Fairvaluemeasurementitemsatlevel2 | Fairvaluemeasurementitemsatlevel3 | Total | |
| (IV)Otherequityinstrumentinvestment | 21,642,171.36 | 21,642,171.36 | ||
| (V)Othernon-currentfinancialassets | 1,725,572,108.78 | 1,725,572,108.78 | ||
| Totalassetsofconsistentfairvaluemeasurement | 78,865,016.45 | 1,747,214,280.14 | 1,826,079,296.59 | |
| Totalliabilitiesofconsistentfairvaluemeasurement | ||||
| (II)Inconsistentfairvaluemeasurement | ||||
| Totalassetsofinconsistentfairvaluemeasurement | ||||
| Totalliabilitiesofinconsistentfairvaluemeasurement | ||||
2.ValuationTechniqueAdoptedandNatureandAmountDeterminationofImportantParametersforConsistentandInconsistentFairValueMeasurementItemsatLevel2Theinputvalueobservabledirectlyorindirectlyofrelevantasstsorliabilitiesexclusiveofinputvalueatlevel1.
3.ValuationTechniqueAdoptedandNatureandAmountDeterminationofImportantParametersforConsistentandInconsistentFairValueMeasurementItemsatLevel3Valuationtechniqueadoptedandnatureandamountdeterminationofimportantparametersforconsistentandinconsistentfairvaluemeasurementitemsatlevel3.Asfortheunlistedequityinstrumentinvestment,underthecomprehensiveconsiderationoftheCompany,theCompanyestimatestheendingfairvaluebyadoptingtheinvestmentcostmethod,marketmultipliermethodandnetassetsmethod.TheCompanybelievesthatthefairvalueandchangesestimatedbyvaluationtechniquearereasonableandisthemostappropriatevalueforthebalancesheetdate.XIRelatedPartyandRelated-partyTransaction(I)RelationshipofRelatedParty
1.ControllingShareholderandtheUltimateController
(1)ControllingShareholderandtheUltimateController
Name
| Name | Registrationplace | Nature | Registeredcapital | ShareholdingratiototheCompany(%) | VotingrightratiototheCompany(%) |
| OCTGroupCo.,Ltd. | Shenzhen | Tourism,realestate,electronicsindustry | RMB12billion | 29.999997 | 29.999997 |
Note:TheultimatecontrolleroftheCompanyisState-ownedAssetsSupervisorCommissionoftheStateCouncil.
2.SubsidiaryRefertonoteVIII-1(1)Subsidiariesfortheinformationofsubsidiaries.
3.AssociatedEnterprisesandJointVenturesRefertoNoteVIII-2.(1)SignificantAssociatedEnterprisesfordetailsofsignificantassociatedenterprisesoftheCompany.InformationonotherjointventuresorassociatedenterprisesoccurringconnectedtransactionswiththeCompanyinReportingPeriod,orformingbalanceduetoconnectedtransactionsmadeinpreviousperiod:
| Name | RelationshipwiththeCompany |
| PuchuangJiakangTechnologyCo,Ltd. | Associatedenterprise |
| ShenzhenJielunteTechnologyCo.,Ltd.antitssubsidiaries | Associatedenterprise |
| AnhuiKaikaiSihjieE-commerceCo.,Ltd. | Associatedenterprise |
| DongguanKonkaElectronicSmartTechnologyCo.,Ltd. | Associatedenterprise |
| ShenzhenKonkaE-displayCo.,Ltd. | Associatedenterprise |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | Associatedenterprise |
| ZhuhaiJinsuPlasticCo.,Ltd. | Associatedenterprise |
| ShenzhenKonkaSmartElectricAppliancesTechnologyCo.,Ltd. | Associatedenterprise |
| ShenzhenYaodeTechnologyCo.,Ltd. | Associatedenterprise |
| HenanKonkaSmartElectricalApplianceCo.,Ltd. | Associatedenterprise |
| ShandongKonkaSmartElectricalApplianceCo.,Ltd. | Associatedenterprise |
| FeidiTechnology(Shenzhen)Co.,Ltd.anditssubsidiaries | Associatedenterprise |
| HeilongjiangLongkangSmartElectricalApplianceCo.,Ltd. | Associatedenterprise |
| BinzhouBeihaiWeiqiaoSolidWasteTreatmentCo.,Ltd. | Associatedenterprise |
| KunshanKonkaElectricalCo.,Ltd. | Associatedenterprise |
Name
| Name | RelationshipwiththeCompany |
| E3info(Hainan)TechnologyCo.,Ltd. | Associatedenterprise |
| ShenzhenRF-LINKTechnologyCo.,Ltd | Associatedenterprise |
4.InformationonOtherRelatedParties
| Name | RelationshipwiththeCompany |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | Minorityshareholderofsubsidiary |
| ShenzhenRenjianhuahaiEnvironmentalProtectionTourTechnologyDevelopmentCo.,Ltd. | Minorityshareholderofsubsidiary |
| HandianGroupCo.,Ltd.anditssubsidiaries | Minorityshareholderofsubsidiary |
| ShenzhenJinzhuIndustryCo.,Ltd | Minorityshareholderofsubsidiary |
| ShenzhenTradeLinkSupplyChainManagementCo.,Ltd. | Minorityshareholderofsubsidiary |
| HuanjiaGroupCo.,Ltd | Minorityshareholderofsubsidiary |
| HOHOELECTRICAL&FURNITURECO.,LIMITED | Minorityshareholderofsubsidiary |
| AUJETINDUSTRYLIMITED | Minorityshareholderofsubsidiary |
| ShenzhenUnifortuneSupplyChainManagementCo.,Ltd | Minorityshareholderofsubsidiary |
| Unifortune(HongKong)Co.,Ltd. | Companiescontrolledbyminorityshareholdersofsubsidiaries |
| HaiyingTechnologyGroup(HongKong)Co.,Ltd. | Thecompanycontrolledbytheultimatecontrolleroftheminorityshareholdersofthesubsidiary |
| JiangxiMeijiEnterpriseCo.,Ltd. | Thecompanycontrolledbytheultimatecontrolleroftheminorityshareholdersofthesubsidiary |
| DaiRongxing | Familymemberwithcloserelationshipofminorityshareholder |
| HuJiawen | Familymemberwithcloserelationshipofminorityshareholder |
(II)Related-partyTransactions
1.Relatedtransactionsofpurchaseandsaleofgoods,provisionandacceptanceofservices
(1)Informationonacquisitionofgoodsandreceptionoflaborservice
| Relatedparty | Content | ReportingPeriod | Sameperiodoflastyear |
| HaiyingTechnologyGroup(HongKong)Co.,Ltd. | Purchaseofgoods | 1,976,311,600.95 | - |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | Purchaseofgoods | 296,887,244.25 | 272,127,488.75 |
| PuchuangJiakangTechnologyCo,Ltd. | Purchaseofgoods | 184,681,510.44 | - |
| ShenzhenJielunteTechnologyCo.,Ltd. | Purchaseofgoods | 45,637,929.92 | 90,792,814.55 |
| HOHOELECTRICAL&FURNITURECO.,LIMITED | Purchaseofgoods | 34,250,250.58 | |
| HandianGroupCo.,Ltd.anditssubsidiaries | Purchaseofgoods | 28,851,808.45 | - |
| ShenzhenJinzhuIndustryCo.,Ltd | Purchaseofgoods | 20,346,169.14 | - |
| OCTGroupCo.,Ltd.anditssubsidiariesandassociatedenterprises | Purchaseofgoods | 16,952,626.55 | 9,225,567.47 |
Relatedparty
| Relatedparty | Content | ReportingPeriod | Sameperiodoflastyear |
| AnhuiKaikaiSihjieE-commerceCo.,Ltd. | Purchaseofgoods | 11,561,667.28 | 3,139,931.77 |
| DongguanKonkaElectronicsSmartTechnologyCo.,Ltd. | Purchaseofgoods | 5,755,090.87 | - |
| ShenzhenTradeLinkSupplyChainManagementCo.,Ltd. | Purchaseofgoods | 5,617,295.12 | 73,460,368.85 |
| ShenzhenKonkaE-displayCo.,Ltd. | Purchaseofgoods | 5,602,162.83 | - |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | Purchaseofgoods | 2,630,116.46 | 15,852,710.51 |
| ShenzhenKonkaSmartElectronicsTechnologyCo.,Ltd. | Purchaseofgoods | 2,422,573.79 | 2,468,262.65 |
| ZhuhaiJinsuPlasticsCo.,Ltd. | Purchaseofgoods | 1,082,212.94 | 6,015,944.41 |
| HuanjiaGroupCo.,Ltd. | Purchaseofgoods | - | 413,499,020.39 |
| Subtotalofotherrelatedparties | Purchaseofgoodsandservices | 4,897,091.25 | 7,244,130.57 |
(2)Informationofsalesofgoodsandprovisionoflaborservice
| Relatedparty | Content | ReportingPeriod | SamePeriodoflastyear |
| AnhuiKaikaiSihjieE-commerceCo.,Ltd. | Salesofgoodsandrenderlaborservice | 290,281,383.41 | 352,930,313.69 |
| OCTGroupCo.,Ltd.anditssubsidiariesandassociatedenterprises | Salesofgoodsandrenderlaborservice | 103,732,850.45 | 18,520,935.33 |
| HOHOELECTRICAL&FURNITURECO.,LIMITED | Salesofgoods | 65,543,689.34 | - |
| ShenzhenYaodeTechnologyCo.,Ltd. | Salesofgoods | 29,871,066.73 | 224,738,792.69 |
| ShenzhenJielunteTechnologyCo.,Ltd.anditssubsidiaries | Salesofgoodsandrenderlaborservice | 28,339,511.01 | 42,653,586.74 |
| HandianGroupCo.,Ltd.anditssubsidiaries | Salesofgoods | 18,375,346.08 | - |
| HenanKonkaSmartElectricalApplianceCo.,Ltd. | Salesofgoods | 14,995,854.89 | 3,412,835.40 |
| ShandongKonkaSmartElectricalApplianceCo.,Ltd. | Salesofgoods | 13,136,006.95 | 35,713,503.46 |
| ShenzhenKonkaE-displayCommercialDisplayCo.,Ltd. | Salesofgoodsandrenderlaborservice | 10,812,583.47 | - |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | Salesofgoods | 3,547,295.36 | 12,761,245.95 |
| ShenzhenKonkaSmartElectricalApparatusTechnologyCo.,Ltd. | Salesofgoods | 2,359,154.20 | - |
| FeidiTechnology(Shenzhen)Co.,Ltd.anditssubsidiaries | Rentalservice | 1,877,632.62 | 2,000,434.75 |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | Salesofgoodsandrenderlaborservice | 489,119.65 | 2,174,394.52 |
Relatedparty
| Relatedparty | Content | ReportingPeriod | SamePeriodoflastyear |
| HeilongjiangLongkangSmartElectricalApplianceCo.,Ltd. | Salesofgoods | 5,801.16 | 11,863,615.67 |
| AUJETINDUSTRYLIMITED | Salesofgoods | - | 116,061,505.67 |
| ShenzhenTradeLinkSupplyChainManagementCo.,Ltd. | Salesofgoodsandrenderlaborservice | - | 3,900,956.90 |
| BinzhouBeihaiWeiqiaoSolidWasteTreatmentCo.,Ltd. | Salesofgoodsandrenderlaborservice | - | 2,294,871.78 |
| Subtotalofotherrelatedparties | Salesofgoodsandrenderlaborservice | 4,695,746.94 | 2,524,905.47 |
2.InformationonRelated-partyLease
| Leasee | Category | TheleasefeeconfirmedintheReportingPeriod | Theleasefeeconfirmedinthesameperiodoflastyear |
| OCTGroupCo.Ltd.anditssubsidiaries | Commercialresidentialbuildingsandofficebuildings | 871,161.20 | 711,709.06 |
3.InformationonRelated-partyGuarantee
(1)TheCompanywasguarantor
| Securedparty | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| YibinOCTSanjiangPropertiesCo.,Ltd. | 58.00 | CNY | 2019-9-29 | 2022-9-28 | Not |
| KunshanKangshengInvestmentDevelopmentCo.,Ltd. | 5,049.45 | CNY | 2019-9-23 | 2022-9-22 | Not |
| EconTechnology | 900.00 | CNY | 2019-4-23 | 2020-4-22 | Not |
| EconTechnology | 3,000.00 | CNY | 2019-10-28 | 2020-10-27 | Not |
| EconTechnology | 5,000.00 | CNY | 2020-3-31 | 2021-3-31 | Not |
| EconTechnology | 7,899.00 | CNY | 2020-4-29 | 2021-4-28 | Not |
| EconTechnology | 5,000.00 | CNY | 2020-5-25 | 2021-5-24 | Not |
| EconTechnology | 17,820.00 | CNY | 2020-6-5 | 2021-3-17 | Not |
| XingDaHongYe | 5,800.00 | CNY | 2018-11-21 | 2020-11-21 | Not |
| XingDaHongYe | 2,072.42 | CNY | 2019-12-9 | 2022-6-9 | Not |
| XingDaHongYe | 3,300.00 | CNY | 2020-6-15 | 2021-6-15 | Not |
| PengrunTechnology | 1,500.00 | CNY | 2019-8-21 | 2020-8-20 | Not |
| JiangxiKonka | 10,000.00 | CNY | 2018-12-4 | 2020-12-23 | Not |
Securedparty
| Securedparty | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| JiangxiKonka | 5,000.00 | CNY | 2018-12-7 | 2020-12-4 | Not |
| JiangxiKonka | 10,900.00 | CNY | 2019-3-18 | 2021-9-18 | Not |
| JiangxiKonka | 5,000.00 | CNY | 2020-6-28 | 2021-6-27 | Not |
| JiangxiKonka | 5,500.00 | CNY | 2019-6-26 | 2022-6-25 | Not |
| JiangxiKonka | 6,500.00 | CNY | 2019-10-30 | 2022-10-30 | Not |
| JiangxiKonka | 990.00 | CNY | 2020-3-20 | 2022-3-19 | Not |
| XinfengMicrocrystalline | 6,000.00 | CNY | 2020-6-18 | 2021-6-17 | Not |
| XinfengMicrocrystalline | 6,000.00 | CNY | 2019-12-27 | 2020-12-26 | Not |
| XinfengMicrocrystalline | 5,000.00 | CNY | 2020-5-19 | 2023-5-19 | Not |
| XinfengMicrocrystalline | 3,200.00 | CNY | 2020-5-29 | 2022-11-29 | 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 |
| NanoCrystallizedGlass | 5,000.00 | CNY | 2020-1-8 | 2023-1-8 | Not |
| NanoCrystallizedGlass | 5,000.00 | CNY | 2020-1-8 | 2022-1-8 | Not |
| NanoCrystallizedGlass | 990.00 | CNY | 2020-3-20 | 2022-3-19 | Not |
| NanoCrystallizedGlass | 5,500.00 | CNY | 2020-5-29 | 2022-11-29 | Not |
| NanoCrystallizedGlass | 5,000.00 | CNY | 2020-6-24 | 2021-6-24 | Not |
| AnhuiKonka | 8,000.00 | CNY | 2019-7-31 | 2020-7-31 | Not |
| AnhuiKonka | 8,000.00 | CNY | 2019-8-19 | 2020-7-29 | Not |
| AnhuiKonka | 5,000.00 | CNY | 2019-11-7 | 2020-10-9 | Not |
| AnhuiTongchuang | 2,800.00 | CNY | 2019-12-25 | 2020-12-25 | Not |
| AnhuiTongchuang | 2,950.00 | CNY | 2019-6-24 | 2020-6-24 | Not |
| ElectronicsTechnology | 32,522.47 | CNY | 2019-4-18 | 2020-10-15 | Not |
| ElectronicsTechnology | 2,102.47 | CNY | 2019-6-20 | 2021-6-28 | Not |
| ElectronicsTechnology | 50,000.00 | CNY | 2020-1-7 | 2020-12-6 | Not |
| ElectronicsTechnology | 6,000.00 | CNY | 2020-6-9 | 2021-6-9 | Not |
| SichuanKonka | 4,000.00 | CNY | 2019-3-18 | 2022-3-17 | Not |
| BoluoKonkaPrecision | 2,459.21 | CNY | 2019-2-20 | 2021-2-20 | Not |
Securedparty
| Securedparty | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| HongKongKonka | 1,325.00 | USD | 2019-7-18 | 2020-8-3 | Not |
| HongKongKonka | 1,334.96 | USD | 2019-11-15 | 2020-12-5 | Not |
| HongKongKonka | 2,000.00 | USD | 2020-3-6 | 2021-3-6 | Not |
| DongguanKonka | 1,800.00 | CNY | 2019-11-8 | 2024-11-10 | Not |
| DongguanKonka | 3,000.00 | CNY | 2020-1-16 | 2021-1-15 | 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 |
| OCTGroupCo.Ltd. | 200,000.00 | CNY | 2020-6-19 | 2022-6-19 | Not |
| ShenzhenMusenEnterpriseCo.,Ltd. | 3,325.73 | CNY | 2019-3-19 | 2022-3-18 | Not |
| SuiyongRongxinAssetsManagementCo.,Ltd. | 5,635.00 | CNY | 2019-9-12 | 2020-12-31 | Not |
| YantaiBaijiangyuanBusinessManagementCenter(LP) | 18,301.17 | CNY | 2019-6-6 | 2021-6-1 | Not |
| YantaiFengqingtaiInvestmentCenter(LP) | 8,138.54 | CNY | 2019-6-6 | 2021-6-1 | Not |
| YantaiQingrunyuanBusinessManagementCenter(LP) | 7,477.90 | CNY | 2019-6-6 | 2021-6-1 | Not |
| YantaiQingjiangchuanBusinessManagementCenter(LP) | 520.08 | CNY | 2019-6-6 | 2021-6-1 | Not |
| YantaiBaijiangyuanBusinessManagementCenter(LP) | 10,316.79 | CNY | 2019-4-23 | 2021-5-24 | Not |
| YantaiFengqingtaiInvestmentCenter(LP) | 4,587.88 | CNY | 2019-4-23 | 2021-5-24 | Not |
| YantaiQingrunyuanBusinessManagement | 293.18 | CNY | 2019-4-23 | 2021-5-24 | Not |
Guarantor:
| Guarantor: | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| Center(LP) | |||||
| YantaiQingjiangchuanBusinessManagementCenter(LP) | 4,215.46 | CNY | 2019-4-23 | 2021-5-24 | Not |
| HuanjiaGroupCo.,Ltd. | 24,500.00 | CNY | 2019-8-8 | 2020-8-7 | Not |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | 4,533.96 | CNY | 2020-6-24 | 2021-5-20 | Not |
| ShenzhenGuoxinMicro-electronicsCo.,Ltd. | 2,606.07 | CNY | 2019-8-24 | 2020-8-23 | Not |
| YudongEnvironmentalProtectionTechnologyCo.,Ltd.,YuanShengxiang | 8,820.00 | CNY | 2019-9-10 | 2020-9-9 | Not |
| ShenzhenHenglongtongTechnologyCo.,Ltd. | 552.72 | CNY | 2020-1-1 | 2020-12-31 | Not |
| ShenzhenHenglongtongTechnologyCo.,Ltd. | 26.59 | USD | 2020-1-1 | 2020-12-31 | Not |
| GuizhouHuajinrunTechnologyCo.Ltd. | 953.13 | USD | 2018-1-1 | 2020-12-31 | Not |
| ShenhzhenTradeLinkSupplyChainManagementCo.,Ltd. | 1,123.57 | USD | 2018-9-27 | 2021-4-30 | Not |
| AUJETINDUSTRYLIMITED | 3,316.86 | USD | 2018-5-17 | 2021-4-30 | Not |
| ShenzhenUnifortuneSupplyChainManagementCo.,Ltd. | 1,470.00 | USD | 2018-9-19 | 2023-6-30 | Not |
| ShenzhenUnifortuneSupplyChainManagementCo.,Ltd. | 2,213.31 | USD | 2018-1-1 | 2023-6-30 | Not |
| WuGuorenandXiaoYongsong | 1,225.00 | USD | 2019-1-1 | 2020-12-31 | Not |
| WuGuorenandXiaoYongsong | 6,664.00 | USD | 2018-8-21 | 2020-12-31 | Not |
| HuZehong | 2,450.00 | CNY | 2019-8-2 | 2020-8-1 | Not |
| HuZehong | 1,470.00 | CNY | 2019-11-8 | 2020-11-7 | Not |
| HuZehong | 980.00 | CNY | 2020-1-24 | 2021-1-23 | Not |
| HuZehong | 1,959.02 | CNY | 2020-4-21 | 2021-4-20 | Not |
| HuZehong | 490.00 | CNY | 2020-4-22 | 2021-4-20 | Not |
| HuZehong | 443.45 | CNY | 2020-5-19 | 2020-8-18 | Not |
| HuZehong,LiChunsheng,LiangRuiling,DaiYaojin | 2,842.00 | CNY | 2018-11-21 | 2020-11-21 | Not |
| HuZehong,LiChunsheng,LiangRuiling,DaiYaojin | 1,015.49 | CNY | 2019-12-9 | 2022-6-9 | Not |
Guarantor:
| Guarantor: | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| HuZehong,LiChunsheng,LiangRuiling,DaiYaojin | 1,617.00 | CNY | 2020-6-15 | 2021-6-15 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 15,631.00 | CNY | 2019-10-12 | 2020-10-11 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 4,900.00 | CNY | 2018-12-4 | 2020-12-23 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 2,450.00 | CNY | 2018-12-7 | 2020-12-4 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 5,341.00 | CNY | 2019-3-18 | 2021-9-18 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 2,450.00 | CNY | 2020-6-28 | 2021-6-27 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 2,695.00 | CNY | 2019-6-26 | 2022-6-25 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 3,185.00 | CNY | 2019-10-30 | 2022-10-30 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 485.10 | CNY | 2020-3-20 | 2022-3-19 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 2,940.00 | CNY | 2020-6-18 | 2021-6-17 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 2,940.00 | CNY | 2019-12-27 | 2020-12-26 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 2,450.00 | CNY | 2020-5-19 | 2023-5-19 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 1,568.00 | CNY | 2020-5-29 | 2022-11-29 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuQingming,XiongMuzhi,ZengXiaohong,ZhuChengfu | 4,900.00 | CNY | 2019-10-1 | 2022-7-18 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 2,450.00 | CNY | 2020-5-29 | 2022-11-29 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 2,450.00 | CNY | 2020-1-8 | 2023-1-8 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 2,450.00 | CNY | 2020-1-8 | 2022-1-8 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 485.10 | CNY | 2020-3-20 | 2022-3-19 | Not |
Guarantor:
| Guarantor: | Guaranteeamount(RMB’0,000) | Currency | Startdate | Enddate | Executionaccomplishedornot |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 2,695.00 | CNY | 2020-5-29 | 2022-11-29 | Not |
| JiangxiXinzixinRealEstateCo.,Ltd.,ZhuXinming | 2,450.00 | CNY | 2020-6-24 | 2021-6-24 | Not |
| ElectronicsTechnology | 50,000.00 | CNY | 2019-9-26 | 2020-9-25 | 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. | 83,406.00 | 2019-12-11 | 2022-12-9 | 2019/12/11to2022/12/09 | 3.93% |
| ShenzhenRenjianhuahaiEnvironmentalProtectionTourTechnologyDevelopmentCo.,Ltd. | 27,979.00 | 2019-11-25 | 2020-11-24 | 2019/11/25to2020/11/24 | 8.00% |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | 1,000.00 | 2019-8-15 | 2020-8-14 | 2019/08/15to2020/08/14 | 7.00% |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | 4,025.00 | 2019-10-17 | 2020-10-16 | 2019/10/17to2020/10/16 | 7.00% |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | 245.00 | 2020-2-1 | 2021-1-31 | 2020/02/01to2021/01/31 | 7.00% |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | 245.00 | 2020-2-13 | 2021-2-12 | 2020/02/13to2021/02/12 | 7.00% |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | 3,000.00 | 2020-2-20 | 2021-2-19 | 2020/02/20to2021/02/19 | 7.00% |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | 5,880.00 | 2020-6-23 | 2021-6-22 | 2020/06/23to2021/06/22 | 7.00% |
| HandianGroupNingboWashingMachineCo.,Ltd. | 600.00 | 2020-3-31 | 2020-9-30 | 2020/03/31to2020/09/30 | 5.50% |
| HandianGroupNingboWashingMachineCo.,Ltd. | 1,400.00 | 2020-4-14 | 2020-9-30 | 2020/04/14to2020/09/30 | 5.50% |
| Lending | |||||
| ChuzhouKangjinHealthIndustryDevelopmentCo.,Ltd. | 5,880.00 | 2019-9-25 | 2020-9-15 | 2019/09/25to2020/09/15 | 7.00% |
| ChuzhouKangjinHealthIndustryDevelopmentCo.,Ltd. | 1,065.26 | 2020-1-13 | 2021-1-12 | 2020/01/13to2021/01/12 | 7.00% |
| ChuzhouKangjinHealthIndustry | 7,754.74 | 2020-2-27 | 2021-1-12 | 2020/02/27to2021/01/12 | 7.00% |
Name
| Name | Amount(RMB’0,000) | Startdate | Duedate | Duration | Interest |
| DevelopmentCo.,Ltd. | |||||
| ChuzhouKangjinHealthIndustryDevelopmentCo.,Ltd. | 2,450.00 | 2020-6-15 | 2021-6-14 | 2020/06/15to2021/06/14 | 7.00% |
| HaimenKangjianTechnologyIndustrialParkOperationandManagementCo.Ltd. | 12,600.00 | 2019-12-2 | 2020-8-29 | 2019/12/02to2020/08/29 | 8.00% |
| YantaiKangyueInvestmentCo.Ltd. | 12,852.70 | 2019-12-16 | 2020-12-15 | 2019/12/16to2020/12/15 | 8.00% |
| ChongqingQingjiaElectronicCo.,Ltd. | 890.00 | 2019-4-12 | 2020-4-11 | 2019/04/12to2020/04/11 | 8.00% |
| YibinOCTSanjiangPropertiesCo.,Ltd. | 6,000.00 | 2020-4-25 | 2021-4-24 | 2020/4/25to2021/04/24 | 5.70% |
| YibinOCTSanjiangPropertiesCo.,Ltd. | 4,000.00 | 2018-10-25 | 2021-10-24 | 2018/10/25to2021/10/24 | 5.70% |
Note:Theinterestexpensesincurredfromborrowingfundsfromtheaboverelatedpartiesareasfollows:RMB66,180,478.41fromOCTGroupCo.,Ltd.,RMB11,315,951.11fromShenzhenRenjianhuahaiTechnologyEnvironmentalProtectionTourDevelopmentCo.,Ltd.,RMB3,069,577.83fromChuzhouHanshangElectricApplianceCo.,Ltd.,andRMB251,166.57fromHandianGroupNingboWashingMachineCo.,Ltd.;Theinterestincomeorinvestmentincomegeneratedfromthewithdrawaloffundstotheaboverelatedpartiesareasfollows:
RMB339,580.71ofChongqingQingjiaElectronicCo.,Ltd.,RMB4,145,329.37ofChuzhouKangjinHealthIndustryDevelopmentCo.,Ltd.,RMB11,655,136.28ofHaimenKangjianTechnologyIndustrialParkOperationandManagementCo.Ltd.,RMB2,718,553.48ofYibinOCTSanjiangPropertiesCo.,Ltd.andRMB4,903,965.20ofYantaiKangyueInvestmentCo.Ltd..
5.AssetsTransferandDebtRestructuringofRelatedParty
| Content | Time | Acquiree | Price |
| Relevantpatentsof68Cloudbigdataoperations | 23June2020 | ShenzhenKonkaGroupCo.,Ltd. | 98,600,000.00 |
| NanjingKangxingTechnologyIndustrialParkOperationsandManagementCo.,Ltd. | 28June2020 | ShenzhenKonkaGroupCo.,Ltd. | 470,986,530.00 |
6.InformationonRemunerationforKeyManagementPersonnel
| Item | ReportingPeriod(RMB’0,000) | Sameperiodoflastyear(RMB’0,000) |
| Totalremuneration | 1,229.88 | 1,075.01 |
(III)IntercourseBalanceofRelatedParty
1.AccountsReceivable
Item
| Item | Endingbalance | Beginningbalance | ||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | |
| Accountsreceivable: | ||||
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | 225,506,231.75 | 4,746,865.93 | 19,822,544.45 | 402,397.65 |
| ShenzhenYaodeTechnologyCo.,Ltd. | 145,496,436.92 | 2,953,577.67 | 119,160,752.64 | 2,426,038.42 |
| HOHOELECTRICAL&FURNITURECO.,LIMITED | 118,639,372.27 | 2,408,379.26 | 112,180,062.15 | 2,277,255.26 |
| OCTGroupCo.Ltd.Anditssubsidiaries,associatedenterprises | 112,622,828.31 | 2,287,560.41 | 21,207,204.72 | 430,506.25 |
| ShenzhenJielunteTechnologyCo.,Ltd.anditssubsidiaries | 44,923,665.35 | 2,656,432.30 | 75,330,999.32 | 1,645,079.86 |
| ShenzhenKonkaInformationNetworkCo.,Ltd. | 37,995,555.87 | 2,952,214.36 | 38,384,430.47 | 1,536,141.16 |
| ShenzhenKonkaE-displayCo.,Ltd. | 19,974,621.93 | 465,216.50 | 63,110,212.25 | 1,281,137.31 |
| HandianGroupCo.,Ltd.anditssubsidiaries | 9,979,047.69 | 202,574.67 | - | - |
| BinzhouBeihaiWeiqiaoSolidWasteTreatmentCo.,Ltd. | 6,299,250.00 | 614,807.06 | ||
| Subtotalofotherrelatedparties | 8,898,278.10 | 1,364,431.94 | 7,765,722.56 | 1,330,175.79 |
| Total | 724,036,038.19 | 20,037,253.04 | 463,261,178.56 | 11,943,538.76 |
| Notesreceivable: | ||||
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | 4,864,598.85 | 37,000,000.00 | ||
| Subtotalofotherrelatedparties | 7,469,592.83 | 6,739,171.02 | ||
| Total | 12,334,191.68 | 43,739,171.02 | ||
| Otherreceivables: | ||||
| JiangxiMeijiEnterpriseCo.,Ltd. | 93,612,640.31 | 2,068,839.35 | 93,612,640.31 | 2,068,839.35 |
| EquitytransferofDaiRongxingandotherintercoursefunds | 86,923,954.46 | 7,726,527.63 | 85,104,483.48 | 4,161,412.98 |
Item
| Item | Endingbalance | Beginningbalance | ||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | |
| OCTGroupCo.,Ltd.anditssubsidiaries,associatedenterprises | 363,748,667.29 | 12,225,290.65 | 29,609,699.81 | 8,794,143.64 |
| HuanjiaGroupCo.,Ltd. | 23,095,103.20 | 4,613,683.64 | 23,065,103.20 | 4,613,020.64 |
| EquitytransferofHuJiawenandotherintercoursefunds | 257,076.51 | 12,547.42 | 251,625.20 | 12,300.31 |
| Subtotalofotherrelatedparties | 279,490.09 | 24,531.95 | 84,194.95 | 6,951.75 |
| Total | 567,916,931.86 | 26,671,420.64 | 231,727,746.95 | 19,656,668.67 |
| Prepayment: | ||||
| HaiyingTechnologyGroup(HongKong)Co.,Ltd. | 448,972,756.33 | 439,434,346.00 | ||
| ShenzhenKonkaInformationNetworkCo.,Ltd. | 37,516,559.89 | 40,983,577.99 | ||
| PuchuangJiakangTechnologyCo,Ltd. | 38,540,368.50 | 39,920,926.00 | ||
| ShenzhenUnifortuneSupplyChainManagementCo.,Ltd. | 25,406,564.44 | 28,623,157.08 | ||
| ShenzhenJielunteTechnologyCo.,Ltd.anditssubsidiaries | 19,304,806.72 | 13,763,739.19 | ||
| Subtotalofotherrelatedparties | 8,298,926.46 | 883,108.32 | ||
| Total | 578,039,982.34 | 0.00 | 563,608,854.58 | |
| Long-termreceivables: | ||||
| FeidiTechnology(Shenzhen)Co.,Ltd. | 65,044,265.44 | 69,808,144.01 | ||
| Subtotalofotherrelatedparties | 4,817,791.57 | 7,295,892.00 | ||
| Total | 69,862,057.01 | 77,104,036.01 | ||
2.AccountsPayable
| Item | Endingcarryingamount | Beginningcarryingamount |
| Accountspayable: | ||
| E3info(Hainan)TechnologyCo.,Ltd. | 53,509,307.31 | - |
Item
| Item | Endingcarryingamount | Beginningcarryingamount |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | 21,066,327.65 | 1,410,924.07 |
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | 20,138,106.26 | 60,733,455.22 |
| ShenzhenJielunteTechnologyCo.,Ltd.anditssubsidiaries | 18,471,277.96 | 35,164,809.08 |
| HandianGroupCo.,Ltd.anditssubsidiaries | 10,973,134.99 | - |
| OCTGroupCo.,Ltd.anditssubsidiaries,associatedenterprises | 7,082,174.38 | 1,262,017.84 |
| KunshanKonkaElectronicsCo.,Ltd. | 3,543,415.03 | 13,012,382.66 |
| ShenzhenKonkaE-displayCo.,Ltd. | 6,708.85 | 7,355,879.01 |
| Subtotalofotherrelatedparties | 8,740,064.96 | 10,556,097.34 |
| Total | 143,530,517.39 | 129,495,565.22 |
| Notesreceivable: | ||
| ShenzhenJielunteTechnologyCo.,Ltd.anditssubsidiaries | 24,683,927.31 | 9,077,946.60 |
| Subtotalofotherrelatedparties | 2,381,449.40 | 1,785,405.43 |
| Total | 27,065,376.71 | 10,863,352.03 |
| Contractualliabilities/othernoncurrentliabilities:: | ||
| ShenzhenJielunteTechnologyCo.,Ltd.anditssubsidiaries | 27,484,476.05 | - |
| Unifortune(HK)Co.,Ltd. | 25,826,603.42 | 28,673,472.74 |
| OCTGroupCo.,Ltd.anditssubsidiaries,associatedenterprises | 16,444,912.21 | 15,378,600.41 |
| KunshanKonkaElectronicsCo.,Ltd. | 925,231.07 | 13,150,116.07 |
| Subtotalofotherrelatedparties | 170,868.25 | 395,776.64 |
| Total | 70,852,091.00 | 57,597,965.86 |
| Otherpayables: | ||
| ShenzhenRenjianhuahaiEnvironmentalProtectionTourTechnologyDevelopmentCo.,Ltd. | 292,622,318.88 | - |
| ChuzhouHanshangElectricApplianceCo.,Ltd. | 163,696,293.17 | 94,093,715.34 |
| ShenzhenYaodeTechnologyCo.,Ltd. | 75,884,385.90 | 39,727,606.67 |
| E3info(Hainan)TechnologyCo.,Ltd. | 51,208,219.49 | - |
| HandianGroupCo.,Ltd.anditssubsidiaries | 20,251,166.57 | - |
| FeidiTechnology(Shenzhen)Co.,Ltd.anditssubsidiaries | 12,215,861.75 | 11,767,561.85 |
Item
| Item | Endingcarryingamount | Beginningcarryingamount |
| ShenzhenRF-LINKTechnologyCo.,Ltd | 1,011,250.00 | 6,095,250.00 |
| ShenzhenJielunteTechnologyCo.,Ltd.anditssubsidiaries | 776,209.02 | 10,240,000.00 |
| Subtotalofotherrelatedparties | 6,343,962.33 | 1,129,352.98 |
| Total | 624,009,667.11 | 163,053,486.84 |
| Long-termpayables: | ||
| OCTGroupCo.,Ltd.anditssubsidiaries | 44,053,437.92 | 48,946,771.98 |
| Total | 44,053,437.92 | 48,946,771.98 |
XIICommitmentandContingency(I)Commitments
1.CapitalCommitments
| Item | Endingbalance | Beginningbalance |
| Commitmentssignedbuthasn’tbeenrecognizedinfinancialstatements | ||
| —Commitmentonconstructionandpurchaseoflong-livedassets | ||
| —Contractwithlargeamount | 4,527,449,450.36 | 3,889,900,964.09 |
| —Foreigninvestmentcommitments | 100,090,000.00 | 103,090,000.00 |
| Total | 4,627,539,450.36 | 3,992,990,964.09 |
2.OperatingLeaseCommitmentsAsofthebalancesheetdate,theirrevocableoperatingleasecommitmentsthattheCompanysignedwereasfollowed:
| Item | Endingbalance | Beginningbalance |
| Minimumleasepaymentsofirrevocableoperatinglease | ||
| 1yearafterbalancedate | 42,114,634.21 | 29,370,366.16 |
| 2yearsafterbalancedate | 35,970,650.45 | 29,016,143.76 |
| 3yearsafterbalancedate | 9,131,782.87 | 17,502,940.47 |
Followingyears
| Followingyears | 13,119,702.52 | 5,349,676.50 |
| Total | 100,336,770.05 | 81,239,126.89 |
3.OtherCommitmentsAsof30June2020,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.TheCompanyastheplaintifffiledalawsuitforbillsofRMB300,018,021.01tothecourt,askedbillacceptorandShanghaiHuaxinInternationalGroupCo.,Ltd.involvesbillsbeforehandthebillamountanddefaultinterestshallbearjointliability.Asofthedateofthisreport,thecaseinvolvedinRMB150millionisunderforcibleexecution,andothercaseisstillontrial.Theabovecommercialacceptancebillhasnotbeenhonored.
(3)TheCompanyheldcommercialacceptancebillsofChinaNuclearEngineering＆ConstructionGroupCorporationLimited,whiletheacceptorfailedtoacceptthematuredbills.TheCompanyastheplaintifffiledalawsuitforbillsofRMB78,000,690.24tocourtamongcompaniesandinvolvesbillsbeforehandsthebillamountanddefaultinterestshallbearjointliability,andappliedforpropertypreservation.Asoftheissuedateofthisreport,theabovecommercialacceptancebillshavenotbeenpaidintheretrialapplicationofthecase.
(4)TheCompany’ssubsidiary,KonkaFactoringheldcommercialacceptancebillsofCCCCFirstHarborEngineeringCo.,Ltd.,whiletheacceptorfailedtoacceptthematuredbills.TheCompanyastheplaintifffiledalawsuitforbillsofRMB65,221,300.00tocourtamongcompaniesandinvolvesbillsbeforehandsthebillamountanddefaultinterestshallbearjointliability.Asofthedateofthisreport,thecaseisstillontrialandtheabovecommercialacceptancebillhasnotbeenhonored.
(5)ThedisputeamongtheCompanyandChinaEnergyElectricFuelCo.,Ltd.,ChinaEnergy(Shanghai)EnterpriseCo.,Ltd.,ShanghaiNengpingEnterpriseCo.,Ltd.andShenzhenQianhaiBaoyingCommercialFactoringCo.,Ltd.overtherightofrecourseforbillsinvolvestheamountofthesubjectmatterofthelawsuittobeRMB50millionandthecorrespondinginterest.In
September2018,theCompanyfiledalawsuitwithShenzhenIntermediatePeople’sCourt,whichhaspreservedthedefendant’scorrespondingproperty.Thejudgmentofthiscasehascomeintoeffect.Inthecourt'sjudgment,defendantssuchasChinaEnergyElectricFuelCo.,Ltd.shallpaythebillamountofRMB50millionandtherelevantinteresttotheCompany.Asoftheissuancedateofthisreport,thecasewasintheexecutionstageandhasappliedtothecourtforadditionalshareholderstobetheexecutor.
(6)ThedisputeinbillrecourseamongthesubsidiaryoftheCompany,KonkaFactoring(Shenzhen)Co.,Ltd.,TahoeGroupCo.,Ltd.,FuzhouTaijiaEnterpriseCo.,Ltd.andXiamenLianchuangMicro-electronicsCo.,Ltd.,hasinvolvedwiththeunderlyingamountofRMB50millionandrelevantinterest.InJanuary2019,theCompanyfiledalawsuittoXiamenMunicipalIntermediatePeople’sCourt,andtheCompanyhasappliedforpropertypreservationtothecourt.Asoftheissuancedateofthisreport,thecasehasnotgivenjudgment.
(7)TheloancontractdisputesrelatedtotheCompany’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,JiangxiShanshiTechnologywouldrepaytheloanprincipalofRMB100million,interestandliquidateddamagestoChinaGreatWallAMCJiangxiBranchwithin10daysfromtheeffectivedateofthejudgmentrespectively.JiangxiKonka,ZhuXinming,LengSumin,NanoCrystallizedGlassandXinfengMicrocrystalineshallbearjointandseveralliabilitiesforalldebtsdeterminedbytheabovejudgment.Thedefendantshaveappealedagainstthejudgmentofthefirstinstance,butnojudgmenthasbeenmadeinthesecondinstanceofthecase.TheactualcontrollerofKonkaNewMaterials,ZhuXinming,andhisspouse,LengSumin,asguarantors,providedatotalofaboutRMB143millionofrealestatemortgageguaranteetoGreatWallAMCfortheaboveloans.ZhuXinmingandLengSuminalsoprovidedjointandseveralliabilityguarantees.InordertoavoidtheadverseimpactofthiscaseontheCompany,theCompanyhasagreedintheacquisitionagreementofJiangxiKonka,XinfengMicrocrystalline
andnanometermicrocrystallinethatallcontingentdebtsincurredbyJiangxiKonkabytheoriginalshareholdersofKonkanewmaterialintheformofjointandseveralliability.JiangxiXinzixinRealEstateCo.,ltd.hasheldatotalofaboutRMB243millionofrealestateassetsasthecaseoftheanti-guaranteemortgagetoKonkagroupandwentthroughthemortgageregistrationprocedures.Asofthedateofthisreport,thecaseisstillontrialandtheabovecommercialacceptancebillhasnotbeenhonored.
(8)ThedisputeinsalescontractbetweenthesubsidiaryoftheCompany,KonkaHuanjiaandDalianJinshundaMaterialsRecoveryCo.,Ltd.hasinvolvedinRMB87.5millionandrelevantdefaultfineandinterests.InApril2020,DalianHuankangappliedforthesecuritypre-litigationtoDalianIntermediatePeople’sCourtandputonrecord.Asoftheissuancedateofthereport,thecasehasnotbeenheldacourthearing.
(9)ThedisputeinsalescontractbetweenthesubsidiaryoftheCompany,KonkaHuanjiaandDalianXinjieRenewableResourcesCo.,Ltd.hasinvolvedinRMB87.5millionandrelevantdefaultfineandinterests.InApril2020,DalianHuankangappliedforthesecuritypre-litigationtoDalianIntermediatePeople’sCourtandputonrecord.Asoftheissuancedateofthereport,thecasehasnotbeenheldacourthearing.
(10)ThedisputeincapitalincreaseamongthesubsidiaryoftheCompany,ShenzhenNianhua,FangXianglongandJiangYanhasinvolvedinRMB16.3473millionandrelevantinterestsanddefaultfine.InJuly2020,ShenzhenNianhuasubmittedtotheShenzhenInternationalArbitrationCourtforarbitration.NowthecaseisontrialinArbitrationCourt,andShenzhenNianhuahasappliedforpropertypreservationtothecourt.Asoftheissuancedateofthereport,thecasehasnotbeenheldacourthearing.XIIIEventsafterBalanceSheetDate
1.SignificantNon-adjustedEventsNosignificantnon-adjustedevents
XIVOtherSignificantEventsOn17July2020,accordingtotheresolutionsofthe30thMeetingofthe9thBoardoftheDirectors,the51%equityinDongguanKonkaInvestmentCo.,Ltd.heldbytheCompanywasintendedtobepubliclylistedfortransferinState-ownedPropertyExchangeinaccordancewiththestate-ownedpropertytransactionandlistingprocedures,whichthelistedpricewasestimatedtonotbelessthanRMB484.5million.Iftheprocedureofequitytransferiscompletedin2020andbasedonthecarryingvalueandlistedpriceofDongguanInvestmentCo.,Ltd.notlessthanRMB484.5millionon31December2020,theafter-taxprofitisestimatedtobeRMB452.873millionapproximatelyfromthedisposalofequitytransfer.XVNotesofMainItemsintheFinancialStatementsoftheCompanyastheParent
1.AccountsReceivable
(1)ListedbyWithdrawalMethodofExpectedCreditLoss
Category
| Category | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Accountsreceivableforwhichexpectedcreditlosswithdrawnseparately | 848,787,948.95 | 13.73 | 242,065,105.81 | 28.52 | 606,722,843.14 |
| Accountsreceivableforwhichexpectedcreditlosswithdrawnbygroup | |||||
| Ofwhich:Aginggroup | 1,002,910,783.57 | 16.22 | 183,811,788.79 | 18.33 | 819,098,994.78 |
| Projectpaymentgroup | |||||
| Relatedpartygroup | 4,331,375,900.98 | 70.05 | - | - | 4,331,375,900.98 |
| Subtotalofgroups | 5,334,286,684.55 | 86.27 | 183,811,788.79 | 3.45 | 5,150,474,895.76 |
| Total | 6,183,074,633.50 | 100.00 | 425,876,894.60 | 6.89 | 5,757,197,738.90 |
(Continued)
Category
| Category | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | |||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | ||
| Accountsreceivableforwhichexpectedcreditlosswithdrawnseparately | 851,581,146.54 | 8.52 | 243,095,956.82 | 28.55 | 608,485,189.72 |
| Accountsreceivableforwhichexpectedcreditlosswithdrawnbygroup | |||||
| Ofwhich:Aginggroup | 562,863,234.05 | 5.63 | 176,154,824.04 | 31.30 | 386,708,410.01 |
| Projectpaymentgroup | |||||
| Relatedpartygroup | 8,585,700,872.27 | 85.85 | 8,585,700,872.27 | ||
| Subtotalofgroups | 9,148,564,106.32 | 91.48 | 176,154,824.04 | 1.93 | 8,972,409,282.28 |
| Total | 10,000,145,252.86 | 100.00 | 419,250,780.86 | 4.19 | 9,580,894,472.00 |
1)WithdrawalofExpectedCreditLossSeparately
| Name | Endingbalance | |||
| Carryingamount | Baddebtprovision | Withdrawalproportion(%) | Reason | |
| CEFC(Shanghai)GroupCo.,Ltd. | 300,018,021.01 | 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 |
| ChinaNuclearEngineering＆ConstructionGroupCorporationLimited | 78,000,690.24 | 7,890,069.02 | 10.12 | Difficultinturnoverofcurrentcapital |
| ChinaEnergyPowerFuelCo.,Ltd. | 50,000,000.00 | 7,500,000.00 | 15.00 | Difficultinturnoverofcurrentcapital |
| Other | 20,769,237.70 | 14,661,091.87 | 70.59 | Expectedtobedifficult |
Name
| Name | Endingbalance | |||
| Carryingamount | Baddebtprovision | Withdrawalproportion(%) | Reason | |
| torecoverinfull | ||||
| Total | 848,787,948.95 | 242,065,105.81 | ||
2)WithdrawalofExpectedCreditLossbyGroup
①Amonggroups,withdrawalofexpectedcreditlossbyaging
| Aging | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion(%) | |
| Within1year | 760,200,032.36 | 15,432,060.64 | 2.03 |
| 1to2years | 66,633,251.00 | 4,910,870.60 | 7.37 |
| 2to3years | 15,693,286.21 | 3,476,062.90 | 22.15 |
| 3to4years | 1,077,399.81 | 685,980.46 | 63.67 |
| Over4years | 159,306,814.19 | 159,306,814.19 | 100.00 |
| Total | 1,002,910,783.57 | 183,811,788.79 | 18.33 |
②Amonggroups,withdrawalofexpectedcreditlossbyadoptingothermethod
| Item | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion(%) | |
| Relatedpartygroup | 4,331,375,900.98 | ||
| Total | 4,331,375,900.98 | ||
2)Listedbyaginggroup
| Aging | Endingbalance |
| Within1year | 4,484,989,194.84 |
| 1to2years | 1,167,031,114.88 |
| 2to3years | 359,245,550.42 |
| 3to4years | 2,122,297.94 |
| Over4years | 169,686,475.42 |
| Subtotal | 6,183,074,633.50 |
| Less:Baddebtprovision | 425,876,894.60 |
| Total | 5,757,197,738.90 |
(3)InformationofBadDebtProvisionintheReportingPeriod
TheamountofactualwithdrawalofbaddebtprovisionisRMB6,626,113.74.
(4)ActualVerificationofAccountsReceivableNoactualverifiedaccountsreceivableintheReportingPeriod.
(5)Top5oftheEndingBalanceoftheAccountsReceivableCollectedaccordingtoArrearsPartyTotalamountoftop5ofendingbalanceofaccountsreceivablecollectedaccordingtoarrearspartywasRMB4,784,491,503.89accountingfor77.38%oftotalendingbalanceofaccountsreceivable.TotalendingbalanceofbaddebtprovisionwithdrawnwasRMB156,599,208.21.
(6)ThereWasNoAccountReceivableTerminatedtheRecognitionowningtotheTransferoftheFinancialAssets.
(7)ThereWasNoAssetandLiabilityFormedduetotheTransferofAccountsReceivableandContinuedInvolvementintheReportingPeriod.
2.OtherReceivables
Item
| Item | Endingbalance | Beginningbalance |
| Interestreceivable | 9,652,188.83 | 7,431,353.86 |
| Dividendsreceivable | 522,819,271.02 | 518,580,871.02 |
| Otherreceivables | 9,466,431,206.62 | 10,026,808,690.59 |
| Total | 9,998,902,666.47 | 10,552,820,915.47 |
2.1Interestreceivable
| Item | Endingbalance | Beginningbalance |
| Termdeposits | 9,545,356.14 | 4,807,630.04 |
| Entrustmentloans | 106,832.69 | 2,623,723.82 |
| Total | 9,652,188.83 | 7,431,353.86 |
2.2Dividendsreceivable
| Item | Endingbalance | Beginningbalance |
| HongKongKonkaLimited | 219,225,600.00 | 214,987,200.00 |
| KonkaFactoring(Shenzhen)Co.,Ltd. | 70,000,000.00 | 70,000,000.00 |
| DongguanKonkaElectronicCo.,Ltd. | 233,593,671.02 | 233,593,671.02 |
| Total | 518,580,871.02 |
522,819,271.02
2.3Dividendsreceivable
(1)Provisionforbaddebtsofotherreceivables
522,819,271.02Baddebtprovision
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossofthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1January2020 | 7,296,330.73 | 17,404,579.39 | 162,461,369.23 | 187,162,279.35 |
| Balanceof1January2020intheCurrentPeriod: | ||||
| --TransfertoSecondstage | -4,833.16 | 4,833.16 | - | |
| --TransfertoThirdstage | -40,000.00 | 40,000.00 | - | |
| --ReversetoSecondstage | - | |||
| --ReversetoFirststage | - | |||
| WithdrawaloftheCurrentPeriod | 7,484,349.69 | 809,390.34 | - | 8,293,740.03 |
| ReversaloftheCurrentPeriod | -4,493,001.20 | -224,520.79 | -4,717,521.99 | |
| Write-offsoftheCurrentPeriod | - | |||
| VerificationoftheCurrentPeriod | - | |||
| Otherchanges | - | |||
| Balanceof30June2020 | 10,282,846.07 | 17,954,282.09 | 162,501,369.23 | 190,738,497.39 |
Note:Thefirststageisthatcreditriskhasnotincreasedsignificantlysinceinitialrecognition.Forotherreceivableswithanagingportfolioandalow-riskportfoliowithin1year,thelossprovisionismeasuredaccordingtotheexpectedcreditlossesinthenext12months.Thesecondstageisthatcreditriskhasincreasedsignificantlysinceinitialrecognitionbutcreditimpairmenthasnotyetoccurred.Forotherreceivableswithanagingportfolioandalow-riskportfoliothatexceed1year,thelossprovisionismeasuredbasedontheexpectedcreditlossesfortheentireduration.Thethirdstageisthecreditimpairmentafterinitialconfirmation.Forotherreceivablesofcreditimpairmentthathaveoccurred,thelossprovisionismeasuredaccordingtothecreditlossesthathaveoccurredthroughouttheduration.
(2)OtherReceivablesWithdrawnBadDebtProvisionbyGroup
Category
| Category | Endingbalance | |||||
| Carryingamount | Baddebtprovision | Carryingvalue | ||||
| Amount | Proportion(%) | Amount | Withdrawalproportion(%) | |||
| Otherreceivablesforwhichwithdrawnexpectedcreditlossseparately: | 192,711,177.17 | 2.00 | 162,501,369.23 | 84.32 | 30,209,807.94 | |
| Otherreceivablesforwhichwithdrawnbaddebtprovisionbycreditriskfeaturesgroup: | ||||||
| Aginggroup | 167,716,568.56 | 1.73 | 16,934,685.26 | 10.10 | 150,781,883.30 | |
| Lowriskgroup | 716,254,819.87 | 7.42 | 11,302,442.90 | 1.58 | 704,952,376.97 | |
| Relatedpartygroup | 8,580,487,138.41 | 88.85 | - | - | 8,580,487,138.41 | |
| Subtotal | 9,464,458,526.84 | 98.00 | 28,237,128.16 | 0.30 | 9,436,221,398.68 | |
| Total | 9,657,169,704.01 | 100.00 | 190,738,497.39 | 1.98 | 9,466,431,206.62 | |
(Continued)
| Category | Beginningbalance | ||||
| 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 | 3.83 | 7,913,486.89 | 2.03 | 382,669,172.42 |
| Relatedpartygroup | 9,453,522,678.75 | 92.55 | 9,453,522,678.75 | ||
| Subtotal | 10,040,878,010.61 | 98.31 | 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 |
(3)BadDebtProvisionofOtherReceivablesTheamountofbaddebtprovisionwithdrawnintheReportingPeriodwasRMB8,293,740.03,theamountofbaddebtprovisionreversedwasRMB4,717,521.99,andtherewasnoamountreversedofbaddebtprovisionandnootherreceivablesactuallywrittenoff.
(4)BadDebtProvisionListedbyAging
| Aging | Endingbalance |
Aging
| Aging | Endingbalance |
| Within1year | 6,169,871,554.50 |
| 1to2years | 2,978,379,332.46 |
| 2to3years | 170,083,990.98 |
| 3to4years | 51,534,919.06 |
| 4to5years | 126,008,080.90 |
| Over5years | 161,291,826.11 |
| Subtotal | 9,657,169,704.01 |
| Less:Baddebtprovision | 190,738,497.39 |
| Total | 9,466,431,206.62 |
(5)Top5OtherReceivablesinEndingBalanceCollectedaccordingtotheArrearsPartyTotalamountoftop5ofendingbalanceofotherreceivablescollectedaccordingtoarrearspartywasRMB5,323,790,513.35accountingfor55.13%oftotalendingbalanceofotherreceivables.TotalendingbalanceofbaddebtprovisionwithdrawnwasRMB0.
(6)ThereWasNoOtherReceivablesTerminatedtheRecognitionowningtotheTransferoftheFinancialAssets.
(7)ThereWasNoAssetandLiabilityFormedbytheTransferandtheContinuesInvolvementofOtherReceivables.
3.Long-termEquityInvestment
(1)CategoryofLong-termEquityInvestment
Item
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserve | Carryingvalue | Carryingamount | Depreciationreserve | Carryingvalue | |
| Investmenttosubsidiaries | 6,938,234,982.51 | 10,732,484.69 | 6,927,502,497.82 | 5,983,370,982.51 | 10,732,484.69 | 5,972,638,497.82 |
| Investmenttoassociatedenterprises | 1,772,195,046.51 | 12,850,165.07 | 1,759,344,881.44 | 1,752,296,635.13 | 12,850,165.07 | 1,739,446,470.06 |
| Total | 8,710,430,029.02 | 23,582,649.76 | 8,686,847,379.26 | 7,735,667,617.64 | 23,582,649.76 | 7,712,084,967.88 |
(2)InvestmenttoSubsidiaries
| Investee | Beginningbalance | Increase | Decrease | Endingbalance | Depreciationreservewithdrawnoroffset | Endingbalanceofdepreciationreserve |
| 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 | ||||
| KonkaHouseholdAppliances | 1.00 | 1.00 | 10,732,484.69 | |||
| TelecommunicationTechnology | 360,000,000.00 | 360,000,000.00 | ||||
| Domesticappliance | 31,500,000.00 | 31,500,000.00 | ||||
| KonkaCircuit | 48,750,000.00 | 48,750,000.00 | ||||
| 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 |
Investee
| Investee | Beginningbalance | Increase | Decrease | Endingbalance | Depreciationreservewithdrawnoroffset | Endingbalanceofdepreciationreserve |
| BeijingKonka | 200,000,000.00 | 200,000,000.00 | ||||
| CommercialTechnology | 5,832,000.00 | 5,832,000.00 | ||||
| MobileInternet | 20,000,000.00 | 80,000,000.00 | 100,000,000.00 | |||
| 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 | ||||
| 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 | 477,000,000.00 | 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 | 15,300,000.00 | 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 | 100,000,000.00 | 100,000,000.00 | ||||
| KonkaEcologicalDevelopment | 50,000.00 | 50,000.00 | ||||
| KonkaIntegration | 5,100,000.00 | 5,100,000.00 | ||||
| SuiningKonkaIndustrialPark | 200,000,000.00 | 200,000,000.00 | ||||
| SuiningElectronic | 200,000,000.00 | 200,000,000.00 |
Investee
| Investee | Beginningbalance | Increase | Decrease | Endingbalance | Depreciationreservewithdrawnoroffset | Endingbalanceofdepreciationreserve |
| Technology | ||||||
| DongguanKonkaInvestment | 44,400,000.00 | 55,600,000.00 | 100,000,000.00 | |||
| 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 | 650,000,000.00 | 1,000,000,000.00 | |||
| XinyingSemiconductor | 14,000,000.00 | 33,264,000.00 | 47,264,000.00 | |||
| ChongqingPropertiesDevelopment | 25,500,000.00 | 25,500,000.00 | ||||
| NingboKanghanruiElectricalAppliances | 9,000,000.00 | 81,000,000.00 | 90,000,000.00 | |||
| 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 | ||||
| YibinKangrun | 67,000,000.00 | 67,000,000.00 | ||||
| Total | 5,972,638,497.82 | 966,864,000.00 | 12,000,000.00 | 6,927,502,497.82 | - | 10,732,484.69 |
(3)InvestmenttoJointVenturesandAssociatedEnterprises
| Investee | Beginningbalance | Increase/decrease |
Additionalinvestment
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | ||
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | 23,529,741.15 | -6,644,760.80 | 23,529,741.15 | ||
| KunshanKonka | 128,896,753.19 | -6,694,486.50 | 128,896,753.19 | ||
| KunshanKangsheng | 175,254,554.65 | - | 175,254,554.65 | ||
| ChutianDragonCo.,Ltd. | 636,061,636.70 | 7,660,244.55 | 636,061,636.70 | ||
| HelongjiangLongkangZhijiaTechnologyCo.,Ltd. | 2,380,000.00 | -405,445.45 | 2,380,000.00 | ||
| KonkaGreen,KonkaTechnology | 77,342,419.36 | -583,890.18 | 77,342,419.36 | ||
| ShaanxiSilkRoadCloudIntelligentTechCo.,Ltd. | 17,202,315.43 | -1,231,233.96 | 17,202,315.43 | ||
| ShenzhenKonkaInformationNetworkCo.,Ltd. | - | ||||
| ShenzhenZhongbinKonkaTechnologyCo.,Ltd. | 7,273,228.41 | -1,387,373.59 | 7,273,228.41 | ||
| ShenzhenKonkaIntelligentElectricalApparatusCo.,Ltd. | 2,882,149.72 | 266,725.11 | 2,882,149.72 | ||
| ZhuhaiJinsuPlasticCo.,Ltd. | 10,166,404.14 | 383,461.05 | 10,166,404.14 | ||
| ShenzhenBosserNewMaterialsCo.,Ltd. | 73,600,000.00 | -1,200,098.76 | 73,600,000.00 | ||
| ShenzhenYaodeTechnologyCo.,Ltd. | 229,740,245.47 | 145,870.83 | 229,740,245.47 | ||
| WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | 275,577,332.21 | 15,224,245.91 | 275,577,332.21 | ||
| KonkaE-display | 14,399,858.75 | -2,422,790.72 | 14,399,858.75 | ||
| ChuzhouKonkaTechnologyIndustryDevelopmentCo.,Ltd. | 17,270,427.37 | -1,421,124.11 | 17,270,427.37 | ||
| ChuzhouKangjinHealthIndustrialDevelopmentCo.,Ltd. | 14,588,741.64 | -513,435.79 | 14,588,741.64 | ||
| HaimenKangjianTechnologyIndustrialParkOperationsandManagementCo.,Ltd. | 29,589,201.10 | -1,511,213.49 | 29,589,201.10 |
Investee
| Investee | Beginningbalance | Increase/decrease | |||
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | ||
| ShenzhenKangyueEnterpriseCo.,Ltd. | 3,691,460.77 | -364,533.48 | 3,691,460.77 | ||
| NanjingKangxingTechnologyIndustrialParkOperationsandManagementCo.,Ltd. | - | 23,462,938.10 | 23,462,938.10 | - | - |
| E3info(Hainan)TechnologyCo.,Ltd. | 29,838,250.76 | - | |||
| Total | 1,739,446,470.06 | 53,301,188.86 | 23,462,938.10 | -699,839.38 | 1,739,446,470.06 |
(Continued)
| Investee | Increase/decrease | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserve | |||
| Otherequitychanges | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Other | |||
| AnhuiKaikaiShijieE-commerceCo.,Ltd. | 16,884,980.35 | |||||
| KunshanKonka | 122,202,266.69 | |||||
| KunshanKangsheng | 175,254,554.65 | |||||
| ChutianDragonCo.,Ltd. | 9,240,000.00 | 634,481,881.25 | ||||
| HelongjiangLongkangZhijiaTechnologyCo.,Ltd. | 1,974,554.55 | 2,470,398.03 | ||||
| KonkaGreen,KonkaTechnology | 76,758,529.18 | |||||
| ShaanxiSilkRoadCloudIntelligentTechCo.,Ltd. | 15,971,081.47 | |||||
| ShenzhenKonkaInformationNetworkCo.,Ltd. | - | 5,158,909.06 | ||||
| ShenzhenZhongbinKonkaTechnologyCo.,Ltd. | 5,885,854.82 | |||||
| ShenzhenKonkaIntelligentElectricalApparatusCo.,Ltd. | 3,148,874.83 | |||||
Investee
| Investee | Increase/decrease | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserve | |||
| Otherequitychanges | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Other | |||
| ZhuhaiJinsuPlasticCo.,Ltd. | 10,549,865.19 | |||||
| ShenzhenBosserNewMaterialsCo.,Ltd. | 72,399,901.24 | 5,220,857.98 | ||||
| ShenzhenYaodeTechnologyCo.,Ltd. | 229,886,116.30 | |||||
| WuhanTianyuanEnvironmentalProtectionCo.,Ltd. | 290,801,578.12 | |||||
| KonkaE-display | 11,977,068.03 | |||||
| ChuzhouKonkaTechnologyIndustryDevelopmentCo.,Ltd. | 15,849,303.26 | |||||
| ChuzhouKangjinHealthIndustrialDevelopmentCo.,Ltd. | 14,075,305.85 | |||||
| HaimenKangjianTechnologyIndustrialParkOperationsandManagementCo.,Ltd. | 28,077,987.61 | |||||
| ShenzhenKangyueEnterpriseCo.,Ltd. | 3,326,927.29 | |||||
| NanjingKangxingTechnologyIndustrialParkOperationsandManagementCo.,Ltd. | - | |||||
| E3info(Hainan)TechnologyCo.,Ltd. | 29,838,250.76 | |||||
| Total | - | 9,240,000.00 | - | - | 1,759,344,881.44 | 12,850,165.07 |
4.OperatingRevenueandCostofSales
Item
| Item | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Mainoperations | 2,574,146,637.40 | 2,316,701,232.32 | 3,321,449,906.68 | 3,349,145,473.78 |
| Otheroperations | 801,299,393.49 | 634,398,598.53 | 2,046,571,803.72 | 1,915,004,019.37 |
| Total | 3,375,446,030.89 | 2,951,099,830.85 | 5,368,021,710.40 | 5,264,149,493.15 |
5.InvestmentIncome
| Item | ReportingPeriod | Sameperiodoflastyear |
| Long-termequityinvestmentincomeaccountedbyequitymethod | 882,170.97 | 3,928,528.71 |
| Investmentincomefromdisposaloflong-termequityinvestment | 471,523,601.25 | 80,992,101.09 |
| Investmentincomefromholdingofheld-for-tradingfinancialassets | 3,070,000.00 | -10,285,883.02 |
| Investmentincomefromdisposalofheld-for-tradingfinancialassets | 3,405,333.03 | |
| Incomefromentrustfinancialproductsandentrustloans | 29,983,956.45 | 111,340,992.10 |
| Total | 508,865,061.70 | 185,975,738.88 |
XVIApprovalofFinancialStatementsThefinancialstatementwasapprovedon26August2020bytheBoardofDirectors.XVIISupplementaryMaterial
1.ItemsandAmountsofNon-recurringProfitorLoss
| Item | Amount | Note |
| Gain-Lossarisingfromdisposalofnon-currentassets | 560,267,507.91 | |
| Taxrebates,reductionsorexemptionsduetoapprovalbeyondauthorityorthelackofofficialapprovaldocuments | ||
| Governmentsubsidiesrecognizedinthecurrentperiod,exceptfor | 305,771,698.07 |
Item
| Item | Amount | Note |
| thoseacquiredintheordinarycourseofbusinessorgrantedatcertainquotasoramountsaccordingtothegovernment’sunifiedstandards | ||
| Capitaloccupationchargesonnon-financialenterprisesthatarerecordedintocurrentprofitorloss | ||
| GainsduetothattheinvestmentcostsfortheCompanytoobtainsubsidiaries,associatesandjointventuresarelowerthantheenjoyablefairvalueoftheidentifiablenetassetsoftheinvesteeswhenmakingtheinvestments | ||
| Gain/Lossonnon-monetaryassetswap | ||
| Gain/Lossonentrustingotherswithinvestmentsorassetmanagement | 29,457,327.63 | |
| AssetimpairmentprovisionsduetoactsofGodsuchasnaturaldisasters | ||
| Gain/Lossfromdebtrestructuring | ||
| Expensesonbusinessreorganization,suchasexpensesonstaffarrangements,integration,etc. | ||
| Gain/Lossonthepartoverthefairvalueduetotransactionswithdistinctlyunfairprices | ||
| Currentnetprofitorlossofsubsidiariesacquiredinbusinesscombinationunderthesamecontrolfromperiod-beginningtocombinationdate | ||
| Gain/LossincurredfromcontingencyunrelatedtotheCompany’snormaloperatingbusinesses. | ||
| Gain/lossfromchangeoffairvalueoftradingfinancialassetsandliabilities,andderivativefinancialassetsandliabilities,andinvestmentgainsfromdisposaloftradingfinancialassetsandliabilities,andderivativefinancialassetsandliabilities,andinvestmentinotherobligatoryrights,otherthanvalidhedgingrelatedtotheCompany’scommonbusinesses | 40,692,289.31 | |
| Reverseofbaddebtprovisionofaccountsreceivableindividuallyconductingimpairmenttest |
Item
| Item | Amount | Note |
| Gain/lossonentrustmentloans | 265,166.88 | |
| Gain/lossonchangeinfairvalueofinvestmentpropertyofwhichthesubsequentmeasurementiscarriedoutadoptingfairvaluemethod | ||
| Effectoncurrentprofitorlosswhenaone-offadjustmentismadetocurrentprofitorlossaccordingtorequirementsoftaxation,accountingandotherrelevantlawsandregulations | ||
| Custodyfeeincomewhenentrustedwithoperation | ||
| Othernon-operatingincomeandexpenseotherthantheabove | -607,468.60 | |
| Projectconfirmedwiththedefinitionofnon-recurringgainsandlosses | 65,597,934.45 | |
| Subtotal | 1,001,444,455.65 | |
| Incometaxeffects | 174,757,890.66 | |
| Non-controllinginterestseffects(aftertax) | 81,974,276.89 | |
| Total | 744,712,288.10 | — |
TheexplanationoftheCompanyto“Projectconfirmedwiththedefinitionofnon-recurringgainsandlosses”anddefinenon-recurringgainsandlossesasrecurringgainsandlossesaccordingtothenatureandfeaturesofnormalbusinessoperationsofcompany.
| Item | Amount | Reason |
| Softwaretaxrebates | 15,323,154.27 | Governmentgrantsrecognizedinthecurrentperiod,andacquiredintheordinarycourseofbusinessorgrantedatcertainquotasoramountsaccordingtothegovernment’sunifiedstandards |
2.ReturnonEquityandEarningsPerShare
| ProfitasofReportingPeriod | WeightedaverageROE(%) | EPS(Yuan/share) | |
| EPS-basic | EPS-diluted | ||
| NetprofitattributabletoordinaryshareholdersoftheCompany | 1.16 | 0.0391 | 0.0391 |
| NetprofitattributabletoordinaryshareholdersoftheCompanyafterdeductionofnon-recurringprofitorloss | -8.02 | -0.2702 | -0.2702 |
PartXIIDocumentsAvailableforReference
I.ThefinancialstatementswiththesignaturesandsealsoftheCompany’slegalrepresentative,ChiefFinancialOfficerandheadofthefinancialdepartment;II.TheoriginalsofalltheCompany’sdocumentsandannouncementsdisclosedtothepublicvianewspapersdesignatedbytheCSRCintheReportingPeriod;andIII.Otherrelevantmaterials.
TheBoardofDirectorsKonkaGroupCo.,Ltd.27August2020