ReportfortheFirstQuarterof2015ofKonkaGroupCo.,Ltd.
Konka Group Co., Ltd.
Report for the First Quarter of 2015
2015-18
Apr. 2015
ReportfortheFirstQuarterof2015ofKonkaGroupCo.,Ltd.
Section I. Important Reminders
The Board of Directors, the Supervisory Committee, directors, supervisors and senior management staff of Konka Group Co., Ltd. (hereinafter referred to as “the Company”) warrant that the information carried in this report is factual, accurate and complete, without any false record, misleading statement or material omission.And they shall be jointly and severally liable for that.
All directors have attended the board session for reviewing this report.
Chen Yuehua, Company Principal, Huang Zhiqiang, Chief of the Accounting Work, and Xu Youshan, Chief of the Accounting Organ (Chief of Accounting), hereby confirm that the financial statements enclosed in this report are factual, accurate and complete.
This report is prepared in both Chinese and English. Should there be any discrepancy between the two versions, the Chinese version shall prevail.
ReportfortheFirstQuarterof2015ofKonkaGroupCo.,Ltd.
Section II. Financial Highlights& Change of Shareholders
I.Major accounting data andfinancialindexes
Does the Company adjust retrospectively or restate accounting data of previous years due to change ofthe accounting policyor correction ofany accounting error?
□ Yes√ No
|||||
|-|-|-|-|
||Jan.-Mar.2015|Jan.-Mar.2014|+/-(%)|
|Operatingrevenues(RMBYuan)|4,569,152,230.30|4,049,737,785.15|12.83%|
|Net profit attributable to shareholders oftheCompany(RMBYuan)|7,752,441.61|9,522,762.31|-18.59%|
|Net profit attributable to shareholders ofthe Company after extraordinary gainsandlosses(RMBYuan)|-214,058.24|149,469.07|-243.21%|
|Net cash flows from operating activities(RMBYuan)|277,361,649.37|935,058,191.82|-70.34%|
|BasicEPS(RMBYuan/share)|0.0064|0.0079|-18.99%|
|DilutedEPS(RMBYuan/share)|0.0064|0.0079|-18.99%|
|WeightedaverageROE(%)|0.19%|0.23%|-0.04%|
||31Mar.2015|31Dec.2014|+/-(%)|
|Totalassets(RMBYuan)|16,084,083,708.65|16,779,359,276.65|-4.14%|
|NetassetsattributabletoshareholdersoftheCompany(RMBYuan)|4,111,305,157.03|4,103,478,971.07|0.19%|

Items andamounts ofextraordinary gains and losses
√ Applicable□ Inapplicable
Unit: RMBYuan
||||
|-|-|-|
|Item|Jan.-Mar.2015|Explanation|
|Gains/lossesonthedisposalofnon-currentassets(includingtheoffsetpartoftheassetimpairmentprovisions)|-573,789.69||
|Governmentgrantsrecognizedinthecurrentperiod,exceptforthoseacquiredintheordinarycourseofbusinessorgrantedatcertainquotasoramountsaccordingtothegovernment’sunifiedstandards|4,943,335.85||
|Gain/lossonentrustingotherswithinvestmentsorassetmanagement|1,571,095.90||
|Gain/lossonentrustmentloans|759,999.99||
|Non-operatingincomeandexpenseotherthantheabove|2,753,886.36||
|Less:Incometaxeffects|1,242,760.44||

ReportfortheFirstQuarterof2015ofKonkaGroupCo.,Ltd.
||||
|-|-|-|
|Minorityinterestseffects(aftertax)|245,268.12||
|Total|7,966,499.85|--|

 Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public— Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item
√Applicable□ Inapplicable
||||
|-|-|-|
|Item|Amount(RMBYuan)|Reason|
|Taxrebatesonsoftware|30,938,464.43|Government grants closely related to the Company ’ s normaloperation and constantly given at certain quotas or amountsaccordingtothegovernment’spoliciesandstandards|

II. Total number ofshareholders atthe period-endand shareholdingsoftop 10shareholders 1. Total number of common shareholders at the period-end and shareholdings of top 10 common shareholders
Unit:share
|||||||||
|-|-|-|-|-|-|-|-|
|Total number of commonshareholdersattheperiod-end||62,436||||||
|Shareholdingsoftop10commonshareholders||||||||
|Nameofshareholder|Natureofshareholder||Shareholdingpercentage(%)|Numberofsharesheld|Numberofrestrictedsharesheld|Pledgedorfrozenshares||
|||||||Statusofshares|Numberofshares|
|OCTENTERPRISESCO.|State-ownedcorporation||21.75%|261,873,466|198,381,940|Pledged|0|
|||||||Frozen|0|
|Guoyuan SecuritiesBrokerage (HK)Co.,Ltd.|Foreigncorporation||2.89%|34,826,999|0|Pledged|0|
|||||||Frozen|0|
|National SocialSecurity FundPortfolioNo.108|Domesticnon-state-ownedcorporation||2.89%|34,766,528|0|Pledged|0|
|||||||Frozen|0|
|China ResourcesSZITIC-Extraordinary No. 18 FundTrust|Domesticnon-state-ownedcorporation||2.48%|29,878,723|0|Pledged|0|
|||||||Frozen|0|
|GAOLING FUND,L.P.|Foreigncorporation||2.19%|26,400,625|0|Pledged|0|
|||||||Frozen|0|

ReportfortheFirstQuarterof2015ofKonkaGroupCo.,Ltd.
|||||||||
|-|-|-|-|-|-|-|-|
|HOLY TIMEGROUPLIMITED|Foreigncorporation||2.18%|26,290,177|0|Pledged|0|
|||||||Frozen|0|
|China ResourcesSZITIC-Extraordinary No. 17 FundTrust|Domesticnon-state-ownedcorporation||2.01%|24,183,850|0|Pledged|0|
|||||||Frozen|0|
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED|Foreigncorporation||1.53%|18,474,759|0|Pledged|0|
|||||||Frozen|0|
|SunZhenxiang|Domesticnaturalperson||1.17%|14,093,988|0|Pledged|0|
|||||||Frozen|0|
|Shenzhen Ping AnDahua HuitongWealth-Ping AnBank-SpecificCustomer AssetManagement Planof No. 1 ofPingAnHuitong ChuangfuHongyu|Domesticnon-state-ownedcorporation||0.98%|11,743,172|0|Pledged|0|
|||||||Frozen|0|
|Shareholdingsoftop10non-restrictedcommonshareholders||||||||
|Nameofshareholder||Numberofnon-restrictedcommonsharesheld||||Varietyofshares||
|||||||Variety|Number|
|OCTENTERPRISESCO.||63,491,526||||RMBordinaryshares|63,491,526|
|Guoyuan Securities Brokerage(HK)Co.,Ltd.||34,826,999||||Domesticallylistedforeignshares|34,826,999|
|National Social Security FundPortfolioNo.108||34,766,528||||RMBordinaryshares|34,766,528|
|China ResourcesSZITIC-Extraordinary No. 18FundTrust||29,878,723||||RMBordinaryshares|29,878,723|
|GAOLINGFUND,L.P.||26,400,625||||Domesticallylistedforeignshares|26,400,625|
|HOLYTIMEGROUPLIMITED||26,290,177||||Domesticallylistedforeignshares|26,290,177|
|China ResourcesSZITIC-Extraordinary No. 17||24,183,850||||RMBordinaryshares|24,183,850|

ReportfortheFirstQuarterof2015ofKonkaGroupCo.,Ltd.
|||||
|-|-|-|-|
|FundTrust||||
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED|18,474,759|Domesticallylistedforeignshares|18,474,759|
|SunZhenxiang|14,093,988|RMBordinaryshares|14,093,988|
|Shenzhen Ping An DahuaHuitong Wealth-Ping AnBank-Specific Customer AssetManagement Plan of No. 1 ofPing An Huitong ChuangfuHongyu|11,743,172|RMBordinaryshares|11,743,172|
|Explanation on associatedrelationship or persons acting inconcert among theabove-mentionedshareholders|ThefirstmajorityshareholderOVERSEASCHINESETOWNENTERPRISESCO.hasnorelated-partyrelationshipwithothershareholdersandtheyarenotacting-in-concertparties,either. Except for that, the Company does not know whether the other shareholders arerelatedpartiesandwhethertheyareacting-in-concertparties.|||
|Top 10 common shareholderstaking part in securities margintrading(ifany)|A shares shareholder—Sun Zhenxiang held 14,093,988 shares through customer credittradingcollateralsecuritiesaccountofGFSecuritiesCo.,Ltd.|||

Did any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the Companyconduct anypromissory repo during thereporting period?
□ Yea√ No
No such cases in thereporting period.
2. Total number of preferred shareholders at the period-end and shareholdings of top 10 preferred shareholders
□ Applicable√ Inapplicable
ReportfortheFirstQuarterof2015ofKonkaGroupCo.,Ltd.
Section III. Significant Events
I. Significant changes of the major accounting statement items and financial indicators for the reporting period,as well asthe reasons forthesechanges
√ Applicable□ Inapplicable
(I) In the reporting period, we continued to push forward the E-strategy, with an improved product structure, a larger proportion of intelligent TVs in the total sales volume and a growth in the sales income from color TVs. During the reporting period, we also launched Konka T60 Super TV, an internet intelligent TV jointly developed by Konka, GITV (Galaxy Internet TV) and Tencent. GITV was the only integrated broadcast control platform, withTencent’s quality authorized contents introduced via its contents service platform. T60 carried the YIUI control system independently developed by Konka, where we carried out an in-depth cooperation with Tencent in UI (user interface) to create the whole new Q-theme and introduce various software and contents services of Tencent.
However, the reporting period recorded a drop in our net profits due to the cutthroat price competition in thecolorTVmarket.
(II) Changes inmain financial indicators:
Unit: RMB Ten thousand
|||||||
|-|-|-|-|-|-|
|Item|Closingamount|Openingamount|Changeinamount|Ratioofchange(%)|Mainreasonforthechange|
|Interestreceivable|412.98|188.57|224.41|119.00%|Theaccrualinterestincomesincreased.|
|Othercurrentassets|21,584.68|56,802.02|-35,217.34|-62.00%|① Thebankdepositsinothercurrentassetsthathadnotyetarrivedlastyeararrivedinthecurrentperiod,andothercurrentassetsdecreasedaccordingly; ②Thepre-paidandto-be-deductedtaxesreclassifiedintoothercurrentassetsattheperiod-enddecreased.|
|Taxesandfarespayable|4,291.63|11,255.70|-6,964.07|-61.87%|Theunpaidtaxesandfaresdecreased.|
|Interestpayable|2,794.95|2,287.24|507.71|22.20%|Theaccrualinterestincreased.|
|Operatingrevenues|456,915.22|404,973.78|51,941.44|12.83%|Thesalesincreased.|

ReportfortheFirstQuarterof2015ofKonkaGroupCo.,Ltd.
|||||||
|-|-|-|-|-|-|
|Operatingcosts|386,190.87|331,429.69|54,761.19|16.52%|Thesalesincreased.|
|Financialexpenses|7,655.13|5,699.61|1,955.52|34.31%|Financingcostsandexchangeratefluctuations|
|Investmentgains|287.77|217.43|70.34|32.35%|Wealthmanagement|
|Incometaxexpenses|2,737.09|1,273.72|1,463.38|114.89%|ThetotalprofitsoftheCompany(withoutsubsidiaries)increased.|

 II. Progress ofsignificanteventsandanalysis&explanationson theirinfluenceandsolutions√ Applicable□ Inapplicable
(I) Progress oftheurban renewal project in theplant area oftheCompany’s headquarters
In order to push forward the urban renewal of the plant area of the Konka Group Headquarters and fully safeguard the interests of the Company and its investors, as reviewed and approved at the 67th Session of the 7th Board of Directors and the Second Special General Meeting for 2014, the Company and OCT Enterprises Co. were to jointly incorporate an enterprise to work on the renewal project of the plant area of the Konka Group Headquarters. OCT would hold a stake of30% in the joint venture while the Company would hold70%. Up to the disclosure date of this report, the joint venture has been established and is going through relevant formalities.
(II) ProgressoftheCompany’s Kunshan ZhouzhuangProject
After the approval by the 42nd meeting of the 6th Board of Directors, the Company obtained the land use rights of the land in the south of Quanwang Road, Zhouzhuang County, Kunshan. The project covers an area of366,575.8m2fortourism facilities and commercial housing.
The Company is planned to develop the land by stages and determine the annual development plans according to market condition. From March, 2013, the first-phrase residential project has been started for construction and some houses were delivered in 2014. It generated some sales income and produced profits in2014.Meanwhile, the second-phrase residential project started in 2014. III. Commitments made by the Company or any shareholder with a shareholding over5% in the reporting period or such commitments made in previous period and carried down into the reporting period
□ Applicable√ Inapplicable
No such cases in thereporting period.
IV.Predict theoperating results ofJan.-Jun.2015
Warning of possible loss or considerableYoYchange of the accumulated net profit made during the
period-begin to the end of the next reporting period according to prediction, as well as explanations
onthe reasons:
ReportfortheFirstQuarterof2015ofKonkaGroupCo.,Ltd.
□ Applicable√ Inapplicable
V. Securities investments
√ Applicable□ Inapplicable
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Varietyofsecurities|Codeofsecurities|Nameofsecurities|Initialinvestmentcost(RMBYuan)|Numberofsharesheldatperiod-begin|Shareholdingpercentageatperiod-begin|Numberofsharesheldatperiod-end|Shareholdingpercentageatperiod-end|Closingbookvalue(RMBYuan)|Gain/lossforreportingperiod(RMBYuan)|Accountingtitle|Sourceofsecurities|
|Stock|000002|VankeA|2,311,748.07|117,310|0.00%|117,310|0.00%|1,621,224.20|0.00|Available-for-salefinancialassets|Subscriptionofissuingnewshares|
|Total|||2,311,748.07|117,310|--|117,310|--|1,621,224.20|0.00|--|--|
|Disclosuredateoftheboardannouncementonsecuritiesinvestmentapproval|||Inapplicable|||||||||
|Disclosuredateofthegeneralmeetingannouncementonsecuritiesinvestmentapproval(ifany)|||Inapplicable|||||||||

VI.Shareholdings inotherlisted companies
□ Applicable√ Inapplicable
No such cases in thereporting period.
VII. Investments inderivatives
□ Applicable√ Inapplicable
No such cases in thereporting period.
VIII. Researches, visitsand interviewsreceived inthereporting period
□ Applicable√ Inapplicable
No such cases in thereporting period.
ReportfortheFirstQuarterof2015ofKonkaGroupCo.,Ltd.
Section IV. Financial Statements
I.Financialstatements
1.Consolidated balancesheet
Prepared byKonka Group Co., Ltd.
31Mar.2015
Unit: RMBYuan
||||
|-|-|-|
|Item|Closingbalance|Openingbalance|
|CurrentAssets:|||
|Monetaryfunds|1,810,044,864.71|1,703,135,732.18|
|Settlementreserves|||
|Intra-grouplendings|||
|Financial assets measured at fairvalue of which changes are recordedincurrentprofitsandlosses|||
|Derivativefinancialassets|||
|Notesreceivable|3,677,246,015.74|3,819,417,076.37|
|Accountsreceivable|2,211,159,697.58|2,259,293,207.16|
|Accountspaidinadvance|329,599,318.16|315,150,044.57|
|Premiumsreceivable|||
|Reinsurancepremiumsreceivable|||
|Receivable reinsurance contractreserves|||
|Interestreceivable|4,129,817.08|1,885,727.36|
|Dividendreceivable|||
|Otheraccountsreceivable|336,356,912.26|298,975,391.68|
|Financial assets purchased underagreementstoresell|||
|Inventories|3,529,048,169.13|3,904,436,250.33|
|Assetsheldforsale|||
|Non-current assets due within 1year|||
|Othercurrentassets|215,846,771.36|568,020,200.48|

ReportfortheFirstQuarterof2015ofKonkaGroupCo.,Ltd.
||||
|-|-|-|
|Totalcurrentassets|12,113,431,566.02|12,870,313,630.13|
|Non-currentassets:|||
|Loans by mandate and advancesgranted|||
|Available-for-salefinancialassets|305,634,224.20|245,033,609.00|
|Held-to-maturityinvestments|||
|Long-termaccountsreceivable|||
|Long-termequityinvestment|363,308,383.66|362,765,183.66|
|Investingrealestate|231,941,634.23|233,349,452.80|
|Fixedassets|1,774,296,631.84|1,783,695,548.92|
|Constructioninprogress|181,895,302.45|159,604,884.09|
|Engineeringmaterials|||
|Disposaloffixedassets|||
|Productionbiologicalassets|||
|Oil-gasassets|||
|Intangibleassets|350,402,983.16|347,626,130.58|
|R&Dexpense|||
|Goodwill|3,597,657.15|3,597,657.15|
|Long-termdeferredexpenses|35,293,732.96|25,792,805.06|
|Deferredincometaxassets|236,217,613.98|259,516,396.26|
|Othernon-currentassets|488,063,979.00|488,063,979.00|
|Totalofnon-currentassets|3,970,652,142.63|3,909,045,646.52|
|Totalassets|16,084,083,708.65|16,779,359,276.65|
|Currentliabilities:|||
|Short-termborrowings|5,000,179,106.52|5,145,712,436.91|
|BorrowingsfromCentralBank|||
|Customerbankdepositsandduetobanksandotherfinancialinstitutions|||
|Intra-groupborrowings|||
|Financial liabilities measured atfair value of which changes arerecordedincurrentprofitsandlosses|||
|Derivativefinancialliabilities|||
|Notespayable|973,235,070.69|911,355,028.47|
|Accountspayable|2,713,613,371.11|3,144,408,433.93|

ReportfortheFirstQuarterof2015ofKonkaGroupCo.,Ltd.
||||
|-|-|-|
|Accountsreceivedinadvance|312,570,135.81|302,904,453.86|
|Financialassetssoldforrepurchase|||
|Handlingchargesandcommissionspayable|||
|Payrollpayable|218,323,182.59|299,272,715.05|
|Taxpayable|42,916,297.98|112,557,005.85|
|Interestpayable|27,949,527.55|22,872,418.43|
|Dividendpayable|||
|Otheraccountspayable|1,232,326,558.54|1,376,803,381.03|
|Reinsurancepremiumspayable|||
|Insurancecontractreserves|||
|Payables for acting trading ofsecurities|||
|Payablesforactingunderwritingofsecurities|||
|Liabilitiesheldforsale|||
|Non-currentliabilitiesduewithin1year|1,212,681.18|1,525,465.53|
|Othercurrentliabilities|||
|Totalcurrentliabilities|10,522,325,931.97|11,317,411,339.06|
|Non-currentliabilities:|||
|Long-termborrowings|983,882,578.42|957,541,210.52|
|Bondspayable|||
|Ofwhich:preferredshares|||
|Perpetualbonds|||
|Long-termpayables|30,136,615.38|30,029,990.10|
|Long-termpayrollpayables|27,846,234.56|28,554,734.16|
|Specificpayables|||
|Estimatedliabilities|||
|Deferredincome|152,077,680.03|147,315,999.02|
|Deferredincometaxliabilities|1,049,498.77|1,049,498.77|
|Othernon-currentliabilities|||
|Totalnon-currentliabilities|1,194,992,607.16|1,164,491,432.57|
|Totalliabilities|11,717,318,539.13|12,481,902,771.63|
|Owners’ equity:|||

ReportfortheFirstQuarterof2015ofKonkaGroupCo.,Ltd.
||||
|-|-|-|
|Sharecapital|1,203,972,704.00|1,203,972,704.00|
|Otherequityinstruments|||
|Ofwhich:preferredshares|||
|Perpetualbonds|||
|Capitalreserves|1,289,403,563.99|1,289,403,563.99|
|Less:Treasurystock|||
|Othercomprehensiveincome|16,245,222.26|16,171,477.91|
|Specificreserves|||
|Surplusreserves|847,908,466.28|847,908,466.28|
|Provisionsforgeneralrisks|||
|Retainedprofits|753,775,200.50|746,022,758.89|
|Total equityattributableto ownersoftheCompany|4,111,305,157.03|4,103,478,971.07|
|Minorityinterests|255,460,012.49|193,977,533.95|
|Totalowners’ equity|4,366,765,169.52|4,297,456,505.02|
|Totalliabilitiesandowners’ equity|16,084,083,708.65|16,779,359,276.65|

 Legal representative: ChenYuehua Person-in-charge of the accounting work: HuangZhiqiang
Chief oftheaccounting division:XuYoushan
2.Balancesheet oftheCompany
Unit: RMBYuan
||||
|-|-|-|
|Item|Closingbalance|Openingbalance|
|CurrentAssets:|||
|Monetaryfunds|749,444,246.85|993,131,773.08|
|Financial assets measured at fairvalue of which changes are recordedincurrentprofitsandlosses|||
|Derivativefinancialassets|||
|Notesreceivable|3,542,855,791.18|3,664,117,423.56|
|Accountsreceivable|1,395,976,908.62|1,539,295,976.29|
|Accountspaidinadvance|307,469,052.71|349,343,179.42|
|Interestreceivable|18,439,721.47|14,450,153.53|
|Dividendreceivable|||

ReportfortheFirstQuarterof2015ofKonkaGroupCo.,Ltd.
||||
|-|-|-|
|Otheraccountsreceivable|1,066,473,091.30|988,199,630.05|
|Inventories|1,933,329,021.85|2,500,537,916.63|
|Assetsheldforsale|||
|Non-current assets due within 1year|||
|Othercurrentassets|120,157,607.39|201,280,204.53|
|Totalcurrentassets|9,134,145,441.37|10,250,356,257.09|
|Non-currentassets:|||
|Available-for-salefinancialassets|273,584,224.20|218,983,609.00|
|Held-to-maturityinvestments|652,000,000.00|600,000,000.00|
|Long-termaccountsreceivable|||
|Long-termequityinvestment|1,736,174,456.09|1,608,674,456.09|
|Investingrealestate|231,941,634.23|233,349,452.80|
|Fixedassets|530,001,210.15|534,363,754.80|
|Constructioninprogress|35,818,579.88|37,567,861.10|
|Engineeringmaterials|||
|Disposaloffixedassets|||
|Productionbiologicalassets|||
|Oil-gasassets|||
|Intangibleassets|80,641,490.03|76,397,532.51|
|R&Dexpense|||
|Goodwill|||
|Long-termdeferredexpenses|23,250,395.49|14,567,206.83|
|Deferredincometaxassets|223,653,709.01|244,080,035.45|
|Othernon-currentassets|||
|Totalofnon-currentassets|3,787,065,699.08|3,567,983,908.58|
|Totalassets|12,921,211,140.45|13,818,340,165.67|
|Currentliabilities:|||
|Short-termborrowings|285,766,000.82|244,808,594.52|
|Financial liabilities measured atfair value of which changes arerecordedincurrentprofitsandlosses|||
|Derivativefinancialliabilities|||
|Notespayable|456,406,863.94|367,803,372.65|
|Accountspayable|6,550,745,291.38|7,871,208,959.66|

ReportfortheFirstQuarterof2015ofKonkaGroupCo.,Ltd.
||||
|-|-|-|
|Accountsreceivedinadvance|420,878,094.79|190,627,895.21|
|Payrollpayable|107,026,896.18|146,758,331.08|
|Taxpayable|4,612,047.98|5,081,943.95|
|Interestpayable|3,236,763.25|5,406,211.20|
|Dividendpayable|||
|Otheraccountspayable|1,143,394,094.24|1,103,672,772.19|
|Liabilitiesheldforsale|||
|Non-currentliabilitiesduewithin1year|||
|Othercurrentliabilities|||
|Totalcurrentliabilities|8,972,066,052.58|9,935,368,080.46|
|Non-currentliabilities:|||
|Long-termborrowings|||
|Bondspayable|||
|Ofwhich:preferredshares|||
|Perpetualbonds|||
|Long-termpayables|||
|Long-termpayrollpayables|||
|Specificpayables|||
|Estimatedliabilities|||
|Deferredincome|83,126,750.64|80,679,738.96|
|Deferredincometaxliabilities|||
|Othernon-currentliabilities|||
|Totalnon-currentliabilities|83,126,750.64|80,679,738.96|
|Totalliabilities|9,055,192,803.22|10,016,047,819.42|
|Owners’ equity:|||
|Sharecapital|1,203,972,704.00|1,203,972,704.00|
|Otherequityinstruments|||
|Ofwhich:preferredshares|||
|Perpetualbonds|||
|Capitalreserves|1,250,283,488.79|1,250,283,488.79|
|Less:Treasurystock|||
|Othercomprehensiveincome|464,788.91|471,827.51|
|Specificreserves|||

ReportfortheFirstQuarterof2015ofKonkaGroupCo.,Ltd.
||||
|-|-|-|
|Surplusreserves|847,908,466.28|847,908,466.28|
|Retainedprofits|563,388,889.25|499,655,859.67|
|Totalowners’ equity|3,866,018,337.23|3,802,292,346.25|
|Totalliabilitiesandowners’ equity|12,921,211,140.45|13,818,340,165.67|

 3.Consolidated income statement
Unit: RMBYuan
||||
|-|-|-|
|Item|Jan.-Mar.2015|Jan.-Mar.2014|
|I.Totaloperatingrevenues|4,569,152,230.30|4,049,737,785.15|
|Including:Salesincome|4,569,152,230.30|4,049,737,785.15|
|Interestincome|||
|Premiumincome|||
|Handlingchargeandcommissionincome|||
|II.Totaloperatingcosts|4,578,328,053.63|4,063,464,797.95|
|Including:Costofsales|3,861,908,737.54|3,314,296,879.16|
|Interestexpenses|||
|Handlingchargeandcommissionexpenses|||
|Surrenders|||
|Netclaimspaid|||
|Netamountwithdrawnfortheinsurancecontractreserve|||
|Expenditureonpolicydividends|||
|Reinsurancepremium|||
|Taxesandassociatecharges|13,913,541.44|13,476,912.89|
|Sellinganddistributionexpenses|479,744,466.36|530,426,324.73|
|Administrativeexpenses|146,226,312.63|153,450,740.64|
|Financialexpenses|76,551,299.57|56,996,063.54|
|Assetimpairmentloss|-16,303.91|-5,182,123.01|
|Add: Gain/(loss) from change in fair value (“-” meansloss)|||
|Gain/(loss)frominvestment(“-” meansloss)|2,877,685.83|2,174,273.27|
|Including: share of profits in associates and jointventures|543,200.00|2,174,273.27|
|Foreignexchangegains(“-” meansloss)|||
|III.Businessprofit(“-” meansloss)|-6,298,137.50|-11,552,739.53|

ReportfortheFirstQuarterof2015ofKonkaGroupCo.,Ltd.
||||
|-|-|-|
|Add:non-operatingincome|39,220,480.97|36,198,775.51|
|Including: Gains on disposal of non-currentassets|||
|Less:non-operatingexpense|1,158,584.02|1,583,788.49|
|Including: Losses on disposal of non-currentassets|598,558.94|950,183.34|
|IV.Totalprofit(“-” meansloss)|31,763,759.45|23,062,247.49|
|Less:Incometaxexpense|27,370,944.43|12,737,179.94|
|V.Netprofit(“-” meansloss)|4,392,815.02|10,325,067.55|
|NetprofitattributabletoownersoftheCompany|7,752,441.61|9,522,762.31|
|Minorityshareholders’ income|-3,359,626.59|802,305.24|
|VI. After-tax net amount of other comprehensiveincomes|403,940.87|-2,017,338.63|
|After-tax net amount of other comprehensiveincomesattributabletoownersoftheCompany|73,744.35|-1,443,336.33|
|(I)Othercomprehensiveincomesthatwillnotbereclassifiedintogainsandlosses|0.00|0.00|
|1. Changes in net liabilities or assets with adefinedbenefitplanuponre-measurement|0.00|0.00|
|2. Enjoyable shares in other comprehensiveincomes in investees that cannot be reclassified intogainsandlossesundertheequitymethod|0.00|0.00|
|(II) Other comprehensive incomes that will bereclassifiedintogainsandlosses|73,744.35|-1,443,336.33|
|1. Enjoyable shares in other comprehensiveincomes in investees that will be reclassified into gainsandlossesundertheequitymethod|0.00|0.00|
|2. Gains and losses on fair value changes ofavailable-for-salefinancialassets|-7,038.61|5,278.95|
|3. Gains and losses on reclassifyingheld-to-maturity investments into available-for-salefinancialassets|0.00|0.00|
|4. Effective hedging gains and losses on cashflows|0.00|0.00|
|5. Foreign-currency financial statementtranslationdifference|80,782.96|-1,448,615.28|
|6.Other|0.00|0.00|
|After-tax net amount of other comprehensive|330,196.52|-574,002.30|

ReportfortheFirstQuarterof2015ofKonkaGroupCo.,Ltd.
||||
|-|-|-|
|incomesattributabletominorityshareholders|||
|VII.Totalcomprehensiveincomes|4,796,755.89|8,307,728.92|
|AttributabletoownersoftheCompany|7,826,185.96|8,079,425.98|
|Attributabletominorityshareholders|-3,029,430.07|228,302.94|
|VIII.Earningspershare|||
|(I)Basicearningspershare|0.0064|0.0079|
|(II)Dilutedearningspershare|0.0064|0.0079|

 Where businessmergers underthe samecontrol occurred in thisreporting period, the net profit achieved bythe merged parties before thebusiness mergers was RMB0,with thecorresponding amount for thesame period oflast year being RMB 0.
Legal representative: ChenYuehua Person-in-charge of the accounting work: Huang Zhiqiang Chiefofthe accounting division:XuYoushan
4.Income statementof theCompany
Unit: RMBYuan
||||
|-|-|-|
|Item|Jan.-Mar.2015|Jan.-Mar.2014|
|I.Totalsales|4,320,013,488.31|4,074,766,293.66|
|Less:costofsales|3,822,425,311.86|3,517,553,792.86|
|Businesstaxesandsurcharges|8,117,551.03|9,019,895.98|
|Distributionexpenses|358,082,362.12|425,866,392.90|
|Administrativeexpenses|75,480,708.43|97,900,304.89|
|Financialcosts|1,880,584.76|8,524,359.52|
|Impairmentloss|||
|Add:gain/(loss) from changeinfair value(“-” meansloss)|||
|Gain/(loss)frominvestment(“-” meansloss)|1,079,985.14||
|Including:incomeforminvestmentonassociatesandjointventures|||
|II.Businessprofit(“-” meansloss)|55,106,955.25|15,901,547.51|
|Add:non-operatingincome|29,640,663.70|25,951,845.82|
|Including:Gainsondisposalofnon-currentassets|||
|Less:non-operatingexpense|585,916.73|443,862.26|
|Including:Lossesondisposalofnon-currentassets|492,439.54|53,281.44|
|III.Totalprofit(“-” meansloss)|84,161,702.22|41,409,531.07|

ReportfortheFirstQuarterof2015ofKonkaGroupCo.,Ltd.
||||
|-|-|-|
|Less:Incometaxexpense|20,428,672.64|10,759,011.58|
|IV.Netprofit(“-” meansloss)|63,733,029.58|30,650,519.49|
|V.After-taxnetamountofothercomprehensiveincomes|-7,038.61|5,278.95|
|(I) Other comprehensive incomes that will not bereclassifiedintogainsandlosses|0.00|0.00|
|1. Changes in net liabilities or assets with a definedbenefitplanuponre-measurement|0.00|0.00|
|2. Enjoyable shares in other comprehensive incomesin investees that cannot be reclassified into gains andlossesundertheequitymethod|0.00|0.00|
|(II) Other comprehensive incomes that will bereclassifiedintogainsandlosses|-7,038.61|5,278.95|
|1. Enjoyable shares in other comprehensive incomesin investees that will be reclassified into gains and lossesundertheequitymethod|0.00|0.00|
|2. Gains and losses on fair value changes ofavailable-for-salefinancialassets|-7,038.61|5,278.95|
|3. Gainsand losses on reclassifying held-to-maturityinvestmentsintoavailable-for-salefinancialassets|0.00|0.00|
|4.Effectivehedginggainsandlossesoncashflows|0.00|0.00|
|5. Foreign-currency financial statement translationdifference|0.00|0.00|
|6.Other|0.00|0.00|
|VI.Totalcomprehensiveincomes|63,725,990.97|30,655,798.44|
|VII.Earningspershare|||
|(I)Basicearningspershare|||
|(II)Dilutedearningspershare|||

5.Consolidated cash flowstatement
Unit: RMBYuan
||||
|-|-|-|
|Item|Jan.-Mar.2015|Jan.-Mar.2014|
|I.Cashflowsfromoperatingactivities:|||
|Cash received from sale of commodities andrenderingofservice|4,304,120,204.92|4,228,168,316.46|
|Net increase of deposits from customers and duesfrombanks|||
|Netincreaseofloansfromthecentralbank|||

ReportfortheFirstQuarterof2015ofKonkaGroupCo.,Ltd.
||||
|-|-|-|
|Net increaseoffundsborrowedfromotherfinancialinstitutions|||
|Cash received from premium of original insurancecontracts|||
|Netcashreceivedfromreinsurancebusiness|||
|Net increase of deposits of policy holders andinvestmentfund|||
|Netincreaseofdisposaloffinancialassetsmeasuredatfairvalueofwhichchangesarerecordedintocurrentgainsandlosses|||
|Cash received from interest, handling charges andcommissions|||
|Netincreaseofintra-groupborrowings|||
|Netincreaseoffundsinrepurchasebusiness|||
|Taxrefundsreceived|122,737,100.94|133,591,444.76|
|Othercashreceivedrelatingtooperatingactivities|92,724,628.19|67,080,392.97|
|Subtotalofcashinflowsfromoperatingactivities|4,519,581,934.05|4,428,840,154.19|
|Cashpaidforgoodsandservices|3,322,914,131.71|2,484,241,440.37|
|Netincreaseofcustomerlendingsandadvances|||
|Net increase of funds deposited in the central bankandamountduefrombanks|||
|Cash for paying claims of the original insurancecontracts|||
|Cash for paying interest, handling charges andcommissions|||
|Cashforpayingpolicydividends|||
|Cashpaidtoandforemployees|487,672,449.52|483,492,822.28|
|Varioustaxespaid|155,040,386.50|210,931,969.79|
|Othercashpaymentrelatingtooperatingactivities|276,593,316.95|315,115,729.93|
|Subtotalofcashoutflowsfromoperatingactivities|4,242,220,284.68|3,493,781,962.37|
|Netcashflowsfromoperatingactivities|277,361,649.37|935,058,191.82|
|II.Cashflowsfrominvestingactivities:|||
|Cashreceivedfromwithdrawalofinvestments|20,170,536.85|13,879,620.00|
|Cashreceivedfromreturnoninvestments|7,595,434.93||
|Net cash received from disposal of fixed assets,intangibleassetsandotherlong-termassets|180,987.50|304,708.58|
|Net cash received from disposal of subsidiaries or|||

ReportfortheFirstQuarterof2015ofKonkaGroupCo.,Ltd.
||||
|-|-|-|
|otherbusinessunits|||
|Othercashreceivedrelatingtoinvestingactivities|550,500,000.00||
|Subtotalofcashinflowsfrominvestingactivities|578,446,959.28|14,184,328.58|
|Cash paid to acquire fixed assets, intangible assetsandotherlong-termassets|73,752,961.97|554,763,873.92|
|Cashpaidforinvestment|60,610,000.00||
|Netincreaseofpledgedloans|||
|Net cash paid to acquire subsidiaries and otherbusinessunits|||
|Othercashpaymentsrelatingtoinvestingactivities|550,150,000.00|183,497.35|
|Subtotalofcashoutflowsfrominvestingactivities|684,512,961.97|554,947,371.27|
|Netcashflowsfrominvestingactivities|-106,066,002.69|-540,763,042.69|
|III.CashFlowsfromFinancingActivities:|||
|Cashreceivedfromcapitalcontributions|69,408,631.07||
|Including: Cash received from minorityshareholderinvestmentsbysubsidiaries|69,408,631.07||
|Cashreceivedfromborrowings|1,325,704,590.05|1,249,214,976.99|
|Cashreceivedfromissuanceofbonds|||
|Othercashreceivedrelatingtofinancingactivities|118,098,914.34|471.75|
|Subtotalofcashinflowsfromfinancingactivities|1,513,212,135.46|1,249,215,448.74|
|Repaymentofborrowings|1,404,925,078.41|448,563,365.07|
|Cash paid for interest expenses and distribution ofdividendsorprofit|40,634,577.65|9,784,990.71|
|Including:dividendsorprofitpaidbysubsidiariestominorityshareholders|||
|Other cash payments relating to financingactivities|121,682,102.37|959,134.76|
|Sub-totalofcashoutflowsfromfinancingactivities|1,567,241,758.43|459,307,490.54|
|Netcashflowsfromfinancingactivities|-54,029,622.97|789,907,958.20|
|IV. Effect of foreign exchange rate changes on cashandcashequivalents|-37,073,373.72|15,165,240.87|
|V.Netincreaseincashandcashequivalents|80,192,649.99|1,199,368,348.20|
|Add: Opening balance of cash and cashequivalents|1,640,236,837.08|1,771,489,421.21|
|VI.Closingbalanceofcashandcashequivalents|1,720,429,487.07|2,970,857,769.41|

ReportfortheFirstQuarterof2015ofKonkaGroupCo.,Ltd.
6.Cash flowstatement oftheCompany
Unit: RMBYuan
||||
|-|-|-|
|Item|Jan.-Mar.2015|Jan.-Mar.2014|
|I.Cashflowsfromoperatingactivities:|||
|Cash received from sale of commodities andrenderingofservice|3,718,414,073.90|3,384,948,009.22|
|Taxrefundsreceived|42,946,819.67|70,970,465.76|
|Othercashreceivedrelatingtooperatingactivities|214,398,614.69|39,210,508.85|
|Subtotalofcashinflowsfromoperatingactivities|3,975,759,508.26|3,495,128,983.83|
|Cashpaidforgoodsandservices|3,285,785,906.80|1,744,797,235.10|
|Cashpaidtoandforemployees|269,023,634.05|275,654,888.89|
|Varioustaxespaid|67,107,627.22|108,228,753.26|
|Othercashpaymentrelatingtooperatingactivities|361,524,255.40|367,470,718.52|
|Subtotalofcashoutflowsfromoperatingactivities|3,983,441,423.47|2,496,151,595.77|
|Netcashflowsfromoperatingactivities|-7,681,915.21|998,977,388.06|
|II.Cashflowsfrominvestingactivities:|||
|Cashreceivedfromretractionofinvestments|5,278,509.85|13,879,620.00|
|Cashreceivedfromreturnoninvestments|11,517,815.40|2,400,000.00|
|Net cash received from disposal of fixed assets,intangibleassetsandotherlong-termassets|101,987.50|101,208.58|
|Net cash received from disposal of subsidiariesorotherbusinessunits|||
|Othercashreceivedrelatingtoinvestingactivities|570,000,000.00||
|Subtotalofcashinflowsfrominvestingactivities|586,898,312.75|16,380,828.58|
|Cashpaidtoacquirefixedassets,intangibleassetsandotherlong-termassets|14,014,990.30|506,239,295.60|
|Cashpaidforinvestment|182,610,000.00||
|Net cash paid to acquire subsidiaries and otherbusinessunits|||
|Other cash payments relating to investingactivities|622,000,000.00|40,000,000.00|
|Subtotalofcashoutflowsfrominvestingactivities|818,624,990.30|546,239,295.60|
|Netcashflowsfrominvestingactivities|-231,726,677.55|-529,858,467.02|
|III.CashFlowsfromFinancingActivities:|||
|Cashreceivedfromcapitalcontributions|||

ReportfortheFirstQuarterof2015ofKonkaGroupCo.,Ltd.
||||
|-|-|-|
|Cashreceivedfromborrowings|||
|Cashreceivedfromissuanceofbonds|||
|Other cash received relating to financingactivities|118,098,914.34|0|
|Subtotalofcashinflowsfromfinancingactivities|118,098,914.34|0|
|Repaymentofborrowings|||
|Cash paid for interest expenses and distributionofdividendsorprofit|||
|Other cash payments relating to financingactivities|119,643,450.94|524.85|
|Sub-totalofcashoutflowsfromfinancingactivities|119,643,450.94|524.85|
|Netcashflowsfromfinancingactivities|-1,544,536.60|-524.85|
|IV. Effect of foreign exchange rate changes on cashandcashequivalents|-2,734,551.47|2,858,928.22|
|V.Netincreaseincashandcashequivalents|-243,687,680.83|471,977,324.41|
|Add: Opening balance of cash and cashequivalents|991,459,790.62|1,117,689,643.16|
|VI.Closingbalanceofcashandcashequivalents|747,772,109.79|1,589,666,967.57|

 II.Auditor’s report
Is thisreport audited?
□ Yes√ No
This report isnot audited.
Konka Group Co.,Ltd.
Board ofDirectors
29Apr.2015