KonkaGroupCo.,Ltd. ThirdQuarterReport2018 KONKA GROUP CO., LTD.
THIRD QUARTER REPORT 2018
2018-83
October 2018
KonkaGroupCo.,Ltd. ThirdQuarterReport2018 Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors, supervisors and senior management of Konka Group Co., Ltd. (together with its consolidated subsidiaries, the “Company”, except where the context otherwise requires) hereby guarantee the factuality, accuracy and completeness of the contents of this Report and its summary, and shall be jointly and severally liable for any misrepresentations, misleading statements or material omissions therein.
All theCompany’s directors have attended the Board meeting for the review of this Report andits summary.
Liu Fengxi, theCompany’s legal representative, Li Chunlei, theCompany’s Chief Financial Officer (CFO), and Feng Junxiu, head of theCompany’s financial department (equivalent to financial manager) hereby guarantee that the financial statements carried in this Report are factual, accurate andcomplete.
This Report and its summary have been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese versions shallprevail.
KonkaGroupCo.,Ltd. ThirdQuarterReport2018 Part II Key Corporate Information
I KeyConsolidated Financial Information
Indicate bytick mark whether there isany retrospectively restated datum inthe tablebelow.
□Yes√No
|||||||
|-|-|-|-|-|-|
||30September2018|31December2017||Change(%)||
|Totalassets(RMB)|31,459,422,268.91|23,558,735,469.78||33.54%||
|Equity attributable to the listedcompany’sshareholders(RMB)|8,015,667,877.14|7,994,145,476.61||0.27%||
||Q32018|YoYchange(%)|Q1-Q32018||YoYchange(%)|
|Operatingrevenue(RMB)|12,136,315,129.29|38.58%|29,761,729,899.11||47.60%|
|Net profit attributable to the listedcompany’sshareholders(RMB)|88,041,649.48|-10.14%|429,834,688.51||233.60%|
|Net profit attributable to the listedcompany’s shareholders beforeexceptionalitems(RMB)|-202,316,654.64|-487.53%|-503,187,267.44||-537.82%|
|Net cash generated from/used inoperatingactivities(RMB)|--|--|-2,896,984,300.56||18.68%|
|Basicearningspershare(RMB/share)|0.0366|-10.07%|0.1785||233.64%|
|Diluted earnings per share(RMB/share)|0.0366|-10.07%|0.1785||233.64%|
|Weightedaveragereturnonequity(%)|1.10%|-2.21%|5.24%||0.91%|

 Exceptional gains and losses:
√Applicable□ Not applicable
Unit:RMB
||||
|-|-|-|
|Item|Q1-Q32018|Note|
|Gain or loss on disposal of non-current assets (inclusive of impairment allowancewrite-offs)|207,054,203.32||
|Governmentsubsidieschargedtocurrentprofitorloss(exclusiveofgovernmentsubsidiesgiven in the Company’s ordinary course of business at fixed quotas or amounts as pergovernment’suniformstandards)|157,182,395.52||
|Gainorlossoninvestmentsorassetsentrustedtootherentitiesformanagement|146,587,621.83||
|Gain orlossonfair-valuechanges intradingfinancial assetsandliabilities&investment|25,624,758.24||

KonkaGroupCo.,Ltd. ThirdQuarterReport2018
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|-|-|-|
|income from disposal of trading financial assets and liabilities and available-for-salefinancial assets (exclusive of effective portion of hedges that arise in the Company’sordinarycourseofbusiness)|||
|Gainorlossonloanentrustments|984,930.51||
|Non-operatingincomeandexpenseotherthanabove|25,052,366.37||
|Othergainsandlossesthatmeetdefinitionofexceptionalgain/loss|543,741,891.45||
|Less:Incometaxeffects|96,238,978.51||
|Non-controllinginterestseffects(netoftax)|76,967,232.78||
|Total|933,021,955.95|--|

 Explanation of why theCompany reclassifies as recurrent an exceptional gain/lossitem defined or listed in theExplanatoryAnnouncement No. 1onInformation Disclosurefor Companies Offering Their Securities tothePublic—Exceptional Gain/Loss Items:
√Applicable□ Not applicable
||||
|-|-|-|
|Item|Amount(RMB)|Reason|
|Taxrebatesonsoftware|45,548,282.80|RecurrentgovernmentsubsidiesgivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsaspergovernment’suniformstandards|

II Total Numberof Shareholders and HoldingsofTop 10Shareholders at 30September 2018 1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as wellas Holdings ofTop10Shareholders
Unit:share
||||||||||
|-|-|-|-|-|-|-|-|-|
|Numberofordinaryshareholders|88,816|||Number of preferred shareholders with resumed votingrights(ifany)||||0|
|Top10shareholders|||||||||
|Nameofshareholder||Natureofshareholder|Shareholdingpercentage||Numberofshares|Restrictedshares|Sharesinpledgeorfrozen||
||||||||Status|Shares|
|OVERSEASCHINESETOWNENTERPRISESCO.,LTD||State-ownedlegalperson|21.75%||523,746,932|0|||
|CITIC SECURITIESBROKERAGE (HONG KONG)CO.,LTD.||Foreign legalperson|7.56%||182,100,202|0|||
|HOLYTIMEGROUPLIMITED||Foreign legalperson|2.33%||56,139,100|0|||
|GUOYUANSECURITIES||Foreign legal|2.25%||54,203,779|0|||

KonkaGroupCo.,Ltd. ThirdQuarterReport2018
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|-|-|-|-|-|-|-|
|BROKER(HK)CO.,LTD.|person||||||
|GAOLINGFUND,L.P.|Foreign legalperson|2.19%||52,801,250|0||
|ZHANGXIAOYU|Domesticnaturalperson|0.95%||22,803,978|0||
|CHINAMERCHANTSSECURITIES(HK)LIMITED|State-ownedlegalperson|0.93%||22,485,024|0||
|NAMNGAI|Foreignnaturalperson|0.90%||21,712,140|0||
|YUNNANINTERNATIONALTRUSTCO.,LTD-JULINO.48SINGLECAPITALTRUST|Other|0.88%||21,145,380|0||
|WANGLEI|Domesticnaturalperson|0.82%||19,811,420|0||
|Top10unrestrictedshareholders|||||||
|Nameofshareholder|||Unrestrictedshares||Sharesbytype||
||||||Type|Shares|
|OVERSEASCHINESETOWNENTERPRISESCO.,LTD|||523,746,932||RMB-denominatedordinarystock|523,746,932|
|CITIC SECURITIES BROKERAGE (HONG KONG)CO.,LTD.|||182,100,202||Domesticallylisted foreignstock|182,100,202|
|HOLYTIMEGROUPLIMITED|||56,139,100||Domesticallylisted foreignstock|56,139,100|
|GUOYUANSECURITIESBROKER(HK)CO.,LTD.|||54,203,779||Domesticallylisted foreignstock|54,203,779|
|GAOLINGFUND,L.P.|||52,801,250||Domesticallylisted foreignstock|52,801,250|
|ZHANGXIAOYU|||22,803,978||RMB-denominatedordinarystock|22,803,978|
|CHINAMERCHANTSSECURITIES(HK)LIMITED|||22,485,024||Domesticallylisted foreignstock|22,485,024|
|NAMNGAI|||21,712,140||Domesticallylisted foreignstock|21,712,140|

KonkaGroupCo.,Ltd. ThirdQuarterReport2018
||||||
|-|-|-|-|-|
|YUNNANINTERNATIONALTRUSTCO.,LTD-JULINO.48SINGLECAPITALTRUST||21,145,380|RMB-denominatedordinarystock|21,145,380|
|WANGLEI||19,811,420|RMB-denominatedordinarystock|19,811,420|
|Related or acting-in-concertparties among shareholdersabove|Jialong Investment Limited, a wholly-funded subsidiary of the Company’s first majorityshareholder Overseas Chinese Town Enterprises Co. (“OCT Group” for short), holds180,001,110 and 18,360,000 common shares in the Company respectively through CITICSecurities Brokerage (Hong Kong) Co., Ltd. and China Merchants Securities (HK) Limited.JialongInvestment Limited and OverseasChineseTown EnterprisesCo. arepartiesactinginconcert. Other than that, it is unknown whether the other shareholders are related parties oracting-in-concertpartiesornot.||||
|Top 10 ordinary shareholdersinvolved in securities margintrading(ifany)|Zhang Xiaoyu holds 22,803,978A-shares in the Company through her account of collateralsecurities for margin trading in Huaxi Securities Co., Ltd. Wang Lei holds 19,811,420A-sharesintheCompanythroughhisaccountofcollateralsecuritiesformargintradinginGFSecuritiesCo.,Ltd.||||

Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of theCompany conducted any promissory repo during theReporting Period.□Yea√ No
No suchcases in theReporting Period.
2.Number ofPreferred Shareholders andShareholdings ofTop10ofThem
□Applicable√ Not applicable
KonkaGroupCo.,Ltd. ThirdQuarterReport2018 Part III Significant Events
I Changes inSelected Consolidated FinancialStatement LineItems andExplanationof why√Applicable□ Not applicable
(I) During the Reporting Period, with “Technology+ Industry+ Urbanization” as the development direction, the Company proactively carried out a medium- and long-term strategic development plan featuring “One Centric Orientation, Two Development Paths, Three Development Strategies and Four Business Groups”. Based on its consumer electronics business (color TVs, white goods and mobile phones), the Company gradually extends towards strategic emerging industries, the technology park industry as well as the Internet service and supply chain management sectors.As a result, four major collaborating businessgroups—the technology park business group, the industrial product business group, the platform service business group and the investment& finance businessgroup—have taken shape. Among these, the environmental protection and new material businesses have been put in place, and the supply chain management and Internet service businesses see expanding scales and stronger profitabilitydue to further businessmodel refinements.
(II) Exceptional items have an effect of RMB933 million on the consolidated net profit achieved during thenine monthsended 30September 2018.
(III) Changes in Selected Consolidated Financial Statement LineItems
Unit:RMB’0,000(inRMBtenthousandyuan)
|||||||
|-|-|-|-|-|-|
|Item|30September2018|31December2017|Change|Change(%)|Mainreasonforchange|
|Financialassetsatfairvaluethroughprofitorloss|2,319.85|29.68|2,290.17|7,716.21%|Changesinthefairvalueofforwardforexcontracts|
|Accountsreceivable|477,097.15|344,309.59|132,787.56|38.57%|higherrevenue|
|Goodwill|86,441.84|359.77|86,082.07|23,926.97%|Acquisitionof51%equityinterestsinShandongEconTechnologyCo.,Ltd.,GuangDongXingDaHongYeElectronicCo.,Ltd.andJiangxiKonkaNewMaterialTechnologyCo.,Ltd.|
|Item|Q1~Q32018|Q1~Q32017|Change|Change(%)|Mainreasonforchange|
|Operatingrevenue|2,976,172.99|2,016,361.90|959,811.09|47.60%|Rapidgrowthinemergingbusinesses|
|Costofsales|2,806,358.27|1,803,304.05|1,003,054.22|55.62%|Rapidgrowthinemergingbusinesses|

KonkaGroupCo.,Ltd. ThirdQuarterReport2018
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|-|-|-|-|-|-|
|Gainonchangesinfairvalue|6,994.07|-13,667.72|20,661.79|151.17%|Changesinthefairvalueofforwardforexcontracts|

II Progress, InfluenceandSolutions Associated withSignificant Events
√Applicable□ Not applicable
(I) Regarding the strategic cooperation agreement with the Chuzhou municipal government, so far, the Technological Innovation Centre Phase II project has won the bid for the target land, and the other projects are stillunder negotiation.
(II) In terms of the private placement of corporate bonds, the no-objection letter stating the compliance of the private placement with the transfer conditions has been received from the Shenzhen Stock Exchange. And the commercial factoring securitization and the securitization of accounts receivable are underreview bytheShenzhen StockExchange.
||||
|-|-|-|
|Announcementonsignificantevent|Disclosuredate|Websitelinktoannouncement|
|AnnouncementonSigningaStrategicCooperationAgreementwithShenzhenBinhaiFundManagementCo.,Ltd.|2018-9-26|http://www.cninfo.com.cn/finalpage/2018-09-26/1205464322.PDF|
|AnnouncementontheCompletionoftheRegistrationofaPrivateEquityFundSetupbytheCompanyforM&As|2018-9-7|http://www.cninfo.com.cn/finalpage/2018-09-07/1205418780.PDF|
|ReminderoftheNanjingK-StarCloudNetworkHeadquarterstoBeEstablished|2018-8-14|http://www.cninfo.com.cn/finalpage/2018-08-14/1205282245.PDF|
|ReminderoftheZiboHigh-EndEquipmentIndustrialParktoBeEstablished|2018-8-14|http://www.cninfo.com.cn/finalpage/2018-08-14/1205282322.PDF|
|AnnouncementonaJointStockCompanyWinningtheBidforLandUseRight|2018-8-11|http://www.cninfo.com.cn/finalpage/2018-08-11/1205274958.PDF|
|AnnouncementonProgressoftheTransferofthe51%StakeinKunshanKangsheng|2018-7-3|http://www.cninfo.com.cn/finalpage/2018-07-03/1205112552.PDF|

III Commitments that theCompany’s Actual Controller, Shareholders, Related Parties and Acquirers, as well as the Company Itself and Other Parties, Failed to Fulfill on Time during Reporting Period
□Applicable√ Not applicable
No suchcases in theReporting Period.
KonkaGroupCo.,Ltd. ThirdQuarterReport2018 IV2018AnnualOperating Performance Forecast
Warning of a forecast loss on or a forecast significant year-on-year change in net profit for year 2018,as well as explanationof why:
□Applicable√ Not applicable
V Securities Investments
□Applicable√ Not applicable
No suchcases in theReporting Period.
VI Wealth ManagementEntrustment
√Applicable□ Not applicable
Unit:RMB’0,000
||||||
|-|-|-|-|-|
|Typeofwealthmanagement|Fundingsource|Principal|Outstandingamountbeforematurity|Overdueamount|
|Wealthmanagementproductpurchasedfromtrustcompany|Self-funded|0|74,350|0|
|Wealthmanagementproductpurchasedfrombank|Self-funded|0|2,000|0|
|Total||0|76,350|0|

 High-risk wealth management entrustments with amounts that are individually significant, or with lowsecurity,lowliquidity,ornoprotection of theprincipal:
□Applicable√ Not applicable
Wealth management entrustments with possible impairments including an expectedly unrecoverable principal:
□Applicable√ Not applicable
VII Investments inDerivative Financial Instruments
√Applicable□ Not applicable
|||
|-|-|
|Fundingsource|U.S.dollarfinancings|
|Legal matters involved (ifapplicable)|N/A|
|Disclosure date of boardannouncement approvingderivativeinvestment(ifany)|24May2014|
|Disclosuredateofgeneral meetingannouncement approving|10June2014|

KonkaGroupCo.,Ltd. ThirdQuarterReport2018
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|-|-|
|derivativeinvestment(ifany)||
|Analysis of risks and controlmeasures associated withderivative investments held inReporting Period (including butnotlimitedtomarketrisk,liquidityrisk, credit risk, operational risk,legalrisk,etc.)|We engage in forward forex transactions to reduce the currency risk when securingforeign-currency financing. This is very needed in our routine operation and is incompliancewiththeapplicablelawsandregulations.WehaveformulatedtheManagementRules of Konka Group Co., Ltd. for Investment In Derivative Financial Instruments,making clear the relevant consideration and approval procedure, risk control, etc.. Wealways sign forward forex contracts with large banks such as the Bank of China, whichoperatesteadilyandhave goodcreditstanding, which couldhelppreventlossonforwardforexcontractsduetobankfailure.|
|Changes in market prices or fairvalue of derivative investments inReporting Period (fair valueanalysis should includemeasurement method and relatedassumptionsandparameters)|How we usually measure the fair value of derivative financial instruments: Based on theforward forex sales and purchase contracts that are signed between the Company andbanks and have not expired in a Reporting Period, we recognize the differences betweenthequotationsforthesecontractsonthebalancesheetdatesprovidedbythebanksandthecontractual prices as transactional financial assets or liabilities, and the profit/loss on fairvaluechangesisrecognizedaccordingly.Becausethesecontractshavelockedinexchangerates, nochanges will occurwhen comparing thefair value onsigningdateswith that ondeliverydates.|
|Major changes in accountingpolicies and specific accountingprinciples adopted for derivativeinvestments in Reporting Periodcomparedtolastreportingperiod|Nomaterialchanges|
|Opinion of independent directorson derivative investments and riskcontrol|It is considered necessary for the Company to lock in foreign-currency financing coststhrough financial instruments, because it could effectively reduce the currency risk whensecuring foreign-currency financing. The Company has formulated the internal controlmechanismforinvestmentinderivativefinancialinstruments,andtherelevantriskcontrolmeasuresthattheCompanyhastakenareconsideredeffective.|

Unit:RMB’0,000
||||||
|-|-|-|-|-|
|Typeofderivativefinancialinstrument|Beginningcontractualamount|Endingcontractualamount|Gain/lossinReportingPeriod|EndinginvestmentamountasapercentageoftheCompany’sendingnetassetvalue|
|Forwardforeignexchangecontract|74,021.85|78,363.14|3,082.14|9.78%|

VIII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc. duringReporting Period
□Applicable√ Not applicable
No suchcases in theReporting Period.
IXIrregularities in Provision ofGuarantees forExternal Parties
□Applicable√ Not applicable
No suchcases in theReporting Period.
KonkaGroupCo.,Ltd. ThirdQuarterReport2018 X Occupation of theCompany’s Capital by Controlling Shareholder or Its Related Parties for Non-Operating Purposes
□Applicable√ Not applicable
No suchcases in theReporting Period.
KonkaGroupCo.,Ltd. ThirdQuarterReport2018 Part IV Financial Statements
I FinancialStatements
1.Consolidated BalanceSheet
Prepared byKonka Group Co., Ltd.
30September 2018
Unit:RMB
||||
|-|-|-|
|Item|30September2018|31December2017|
|Currentassets:|||
|Monetarycapital|4,076,675,667.50|3,212,044,851.08|
|Settlementreserve|||
|Interbankloansgranted|||
|Financialassetsatfairvaluethroughprofitorloss|23,198,545.84|296,799.53|
|Derivativefinancialassets|||
|Notesandaccountsreceivable|8,340,316,638.21|8,621,764,935.49|
|Including:Notesreceivable|3,569,345,113.63|5,178,668,988.23|
|Accountsreceivable|4,770,971,524.58|3,443,095,947.26|
|Prepayments|1,271,782,723.99|467,123,091.74|
|Premiumsreceivable|||
|Reinsurancereceivables|||
|Receivablereinsurancecontractreserve|||
|Otherreceivables|928,237,545.58|184,218,356.16|
|Financialassetspurchasedunderresaleagreements|||
|Inventories|5,833,561,767.43|4,690,363,565.53|
|Assetsclassifiedasheldforsale|||
|Currentportionofnon-currentassets|2,844,117.50||
|Othercurrentassets|1,546,759,137.20|1,715,326,868.81|
|Totalcurrentassets|22,023,376,143.25|18,891,138,468.34|
|Non-currentassets:|||
|Loansandadvancestocustomers|||
|Available-for-salefinancialassets|873,112,236.33|712,170,399.09|
|Held-to-maturityinvestments|||
|Long-termreceivables|706,595,979.87||

KonkaGroupCo.,Ltd. ThirdQuarterReport2018
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|-|-|-|
|Long-termequityinvestments|2,417,508,165.57|1,319,987,343.74|
|Investmentproperty|212,232,174.29|216,455,629.99|
|Fixedassets|2,305,024,733.93|1,587,170,348.35|
|Constructioninprogress|790,894,726.10|135,863,821.01|
|Productivelivingassets|||
|Oilandgasassets|||
|Intangibleassets|498,801,019.69|205,057,773.69|
|R&Dexpense|||
|Goodwill|864,418,367.99|3,597,657.15|
|Long-termprepaidexpense|109,741,833.73|150,060,937.30|
|Deferredincometaxassets|586,195,079.79|307,942,263.12|
|Othernon-currentassets|71,521,808.37|29,290,828.00|
|Totalnon-currentassets|9,436,046,125.66|4,667,597,001.44|
|Totalassets|31,459,422,268.91|23,558,735,469.78|
|Currentliabilities:|||
|Short-termborrowings|12,159,913,288.77|6,927,472,037.35|
|Borrowingsfromcentralbank|||
|Customerdepositsandinterbankdeposits|||
|Interbankloansobtained|||
|Financialliabilitiesatfairvaluethroughprofitorloss|443,528.00|47,482,470.50|
|Derivativefinancialliabilities|||
|Notesandaccountspayable|4,366,053,416.81|4,153,391,578.68|
|Advancesfromcustomers|927,567,645.90|640,510,784.17|
|Financialassetssoldunderrepurchaseagreements|||
|Handlingchargesandcommissionspayable|||
|Payrollpayable|281,181,764.05|291,370,297.67|
|Taxespayable|268,099,904.56|1,326,569,094.53|
|Otherpayables|2,572,819,506.51|1,644,083,269.81|
|Reinsurancepayables|||
|Insurancecontractreserve|||
|Payablesforactingtradingofsecurities|||
|Payablesforunderwritingofsecurities|||
|Liabilitiesdirectlyassociatedwithassetsclassified asheldforsale|||
|Currentportionofnon-currentliabilities|12,135,739.84|374,358.99|

KonkaGroupCo.,Ltd. ThirdQuarterReport2018
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|-|-|-|
|Othercurrentliabilities|||
|Totalcurrentliabilities|20,588,214,794.44|15,031,253,891.70|
|Non-currentliabilities:|||
|Long-termborrowings|523,000,000.00|167,000,000.00|
|Bondspayable|||
|Including:Preferredshares|||
|Perpetualbonds|||
|Long-termpayables|724,238,969.59|61,538.46|
|Long-termpayrollpayable|10,169,777.94|13,361,821.86|
|Provisions|288,634.49|6,181,865.10|
|Deferredincome|115,789,446.71|130,049,911.87|
|Deferredincometaxliabilities|58,033,748.68|12,636,633.40|
|Othernon-currentliabilities|||
|Totalnon-currentliabilities|1,431,520,577.41|329,291,770.69|
|Totalliabilities|22,019,735,371.85|15,360,545,662.39|
|Owners’equity:|||
|Sharecapital|2,407,945,408.00|2,407,945,408.00|
|Otherequityinstruments|||
|Including:Preferredshares|||
|Perpetualbonds|||
|Capitalreserves|104,732,242.30|104,732,242.30|
|Less:Treasurystock|||
|Othercomprehensiveincome|-14,527,694.38|3,697,458.95|
|Specificreserve|||
|Surplusreserves|1,217,644,874.79|1,217,644,874.79|
|Generalreserve|||
|Retainedearnings|4,299,873,046.43|4,260,125,492.57|
|TotalequityattributabletoownersoftheCompanyastheparent|8,015,667,877.14|7,994,145,476.61|
|Non-controllinginterests|1,424,019,019.92|204,044,330.78|
|Totalowners’equity|9,439,686,897.06|8,198,189,807.39|
|Totalliabilitiesandowners’equity|31,459,422,268.91|23,558,735,469.78|

 Legal representative: Liu Fengxi ChiefFinancial Officer: Li Chunlei
Head of financial department: FengJunxiu
2.BalanceSheetoftheCompanyastheParent
Unit:RMB
KonkaGroupCo.,Ltd. ThirdQuarterReport2018
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|-|-|-|
|Item|30September2018|31December2017|
|Currentassets:|||
|Monetarycapital|1,775,589,124.86|1,760,838,390.83|
|Financialassetsatfairvaluethroughprofitorloss|23,198,545.84|296,799.53|
|Derivativefinancialassets|||
|Notesandaccountsreceivable|10,501,092,995.23|7,596,218,302.24|
|Including:Notesreceivable|1,827,449,083.56|2,864,064,309.99|
|Accountsreceivable|8,673,643,911.67|4,732,153,992.25|
|Prepayments|1,961,297,504.54|1,066,260,182.37|
|Otherreceivables|4,048,187,670.10|4,341,467,382.86|
|Inventories|311,558,704.81|2,090,697,937.23|
|Assetsclassifiedasheldforsale|||
|Currentportionofnon-currentassets||100,000,000.00|
|Othercurrentassets|878,813,025.79|1,547,454,872.74|
|Totalcurrentassets|19,499,737,571.17|18,503,233,867.80|
|Non-currentassets:|||
|Available-for-salefinancialassets|565,612,236.33|562,612,236.33|
|Held-to-maturityinvestments|||
|Long-termreceivables|||
|Long-termequityinvestments|5,327,019,276.57|2,649,074,424.45|
|Investmentproperty|212,232,174.29|216,455,629.99|
|Fixedassets|467,865,515.67|482,020,892.58|
|Constructioninprogress|99,387,467.10|79,927,345.88|
|Productivelivingassets|||
|Oilandgasassets|||
|Intangibleassets|90,780,033.00|91,718,400.70|
|R&Dexpense|||
|Goodwill|||
|Long-termprepaidexpense|83,593,443.35|78,305,555.97|
|Deferredincometaxassets|473,094,215.80|279,324,511.96|
|Othernon-currentassets|20,000,000.00|20,000,000.00|
|Totalnon-currentassets|7,339,584,362.11|4,459,438,997.86|
|Totalassets|26,839,321,933.28|22,962,672,865.66|
|Currentliabilities:|||

KonkaGroupCo.,Ltd. ThirdQuarterReport2018
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|-|-|-|
|Short-termborrowings|7,364,190,141.56|3,269,730,888.60|
|Financialliabilitiesatfairvaluethroughprofitorloss|443,528.00|47,482,470.50|
|Derivativefinancialliabilities|||
|Notesandaccountspayable|8,792,773,028.90|8,561,630,481.98|
|Advancesfromcustomers|330,530,942.86|601,036,147.76|
|Payrollpayable|153,454,774.54|163,066,135.71|
|Taxespayable|92,860,929.35|1,070,771,570.12|
|Otherpayables|2,413,839,215.18|1,918,409,927.12|
|Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale|||
|Currentportionofnon-currentliabilities|||
|Othercurrentliabilities|||
|Totalcurrentliabilities|19,148,092,560.39|15,632,127,621.79|
|Non-currentliabilities:|||
|Long-termborrowings|285,000,000.00|167,000,000.00|
|Bondspayable|||
|Including:Preferredshares|||
|Perpetualbonds|||
|Long-termpayables|||
|Long-termpayrollpayable|||
|Provisions|288,634.49|6,181,865.10|
|Deferredincome|85,485,533.22|94,590,560.82|
|Deferredincometaxliabilities|30,015,322.73||
|Othernon-currentliabilities|||
|Totalnon-currentliabilities|400,789,490.44|267,772,425.92|
|Totalliabilities|19,548,882,050.83|15,899,900,047.71|
|Owners’equity:|||
|Sharecapital|2,407,945,408.00|2,407,945,408.00|
|Otherequityinstruments|||
|Including:Preferredshares|||
|Perpetualbonds|||
|Capitalreserves|111,525,163.22|111,525,163.22|
|Less:Treasurystock|||
|Othercomprehensiveincome|-1,646,283.60|-1,970,304.62|
|Specificreserve|||

KonkaGroupCo.,Ltd. ThirdQuarterReport2018
||||
|-|-|-|
|Surplusreserves|1,217,644,874.79|1,217,644,874.79|
|Retainedearnings|3,554,970,720.04|3,327,627,676.56|
|Totalowners’equity|7,290,439,882.45|7,062,772,817.95|
|Totalliabilitiesandowners’equity|26,839,321,933.28|22,962,672,865.66|

 3.ConsolidatedIncomeStatementforQ3
Unit:RMB
||||
|-|-|-|
|Item|Q32018|Q32017|
|1.Revenue|12,136,315,129.29|8,757,653,006.20|
|Including:Operatingrevenue|12,136,315,129.29|8,757,653,006.20|
|Interestincome|||
|Premiumincome|||
|Handlingchargeandcommissionincome|||
|2.Operatingcostsandexpenses|12,513,181,900.60|8,752,019,700.99|
|Including:Costofsales|11,621,326,279.61|7,922,849,249.06|
|Interestexpense|||
|Handlingchargeandcommissionexpense|||
|Surrenders|||
|Netclaimspaid|||
|Netamountprovidedasinsurancecontractreserve|||
|Expenditureonpolicydividends|||
|Reinsurancepremiumexpense|||
|Taxesandsurcharges|22,256,789.30|71,791,544.49|
|Sellingexpense|511,335,968.05|510,030,189.59|
|Administrativeexpense|194,171,683.61|94,181,249.13|
|R&Dexpense|89,738,422.31|69,036,697.70|
|Financecosts|68,240,652.10|86,178,068.83|
|Including:Interestexpense|266,966,287.29|115,236,884.80|
|Interestincome|98,892,687.14|30,063,671.03|
|Assetimpairmentloss|6,112,105.62|-2,047,297.81|
|Add:Otherincome|141,693,252.31|8,824,888.51|
|Investmentincome(“-”forloss)|270,593,341.32|108,748,021.30|
|Including: Share of profit or loss of joint ventures andassociates|7,581,610.96|-5,172,588.27|
|Gainonchangesinfairvalue(“-”forloss)|10,085,276.33|-33,599,441.19|
|Foreignexchangegain(“-”forloss)|||

KonkaGroupCo.,Ltd. ThirdQuarterReport2018
||||
|-|-|-|
|Assetdisposalincome(“-”forloss)|-147,012.51||
|3.Operatingprofit(“-”forloss)|45,358,086.14|89,606,773.83|
|Add:Non-operatingincome|15,634,997.65|32,615,396.90|
|Less:Non-operatingexpense|5,920,162.45|5,496,656.85|
|4.Profitbeforetax(“-”forloss)|55,072,921.34|116,725,513.88|
|Less:Incometaxexpense|-115,426,383.66|16,307,135.59|
|5.Netprofit(“-”fornetloss)|170,499,305.00|100,418,378.29|
|5.1Netprofitfromcontinuingoperations(“-”fornetloss)|||
|5.2Netprofitfromdiscontinuedoperations(“-”fornetloss)|||
|NetprofitattributabletoownersoftheCompanyastheparent|88,041,649.48|97,974,481.26|
|Netprofitattributabletonon-controllinginterests|82,457,655.52|2,443,897.03|
|6.Othercomprehensiveincome,netoftax|-12,097,422.41|6,030,691.93|
|AttributabletoownersoftheCompanyastheparent|-13,373,312.59|6,042,757.71|
|6.1Itemsthatwillnotbereclassifiedtoprofitorloss|||
|6.1.1 Changes in net liabilities or assets caused byremeasurementsondefinedbenefitpensionschemes|||
|6.1.2 Share of other comprehensive income of investeesthatwillnotbereclassifiedtoprofitorlossunderequitymethod|||
|6.2Itemsthatmay subsequentlybereclassifiedtoprofit orloss|-13,373,312.59|6,042,757.71|
|6.2.1 Share of other comprehensive income of investeesthatwillbereclassifiedtoprofitorlossunderequitymethod|||
|6.2.2 Gain/Loss on changes in fair value ofavailable-for-salefinancialassets||21,330.65|
|6.2.3 Gain/Loss arising from reclassification ofheld-to-maturity investments to available-for-sale financialassets|||
|6.2.4Effectivegain/lossoncashflowhedges|||
|6.2.5 Differences arising from translation of foreigncurrency-denominatedfinancialstatements|-13,373,312.59|6,021,427.06|
|6.2.6Other|||
|Attributabletonon-controllinginterests|1,275,890.18|-12,065.78|
|7.Totalcomprehensiveincome|158,401,882.59|106,449,070.22|
|AttributabletoownersoftheCompanyastheparent|74,668,336.89|104,017,238.97|
|Attributabletonon-controllinginterests|83,733,545.70|2,431,831.25|
|8.Earningspershare|||
|8.1Basicearningspershare|0.0366|0.0407|

KonkaGroupCo.,Ltd. ThirdQuarterReport2018
||||
|-|-|-|
|8.2Dilutedearningspershare|0.0366|0.0407|

 Legal representative: Liu Fengxi ChiefFinancial Officer: Li Chunlei Head of financial department: FengJunxiu
4.IncomeStatementoftheCompanyastheParentforQ3
Unit:RMB
||||
|-|-|-|
|Item|Q32018|Q32017|
|1.Operatingrevenue|4,440,642,646.78|3,637,822,430.85|
|Less:Costofsales|4,461,216,408.91|3,285,464,737.51|
|Taxesandsurcharges|3,290,938.91|6,078,418.20|
|Sellingexpense|318,949,025.34|369,047,354.26|
|Administrativeexpense|116,016,183.63|48,517,847.59|
|R&Dexpense|26,533,247.55|56,834,001.84|
|Financecosts|42,077,470.06|84,765,740.63|
|Including:Interestexpense|157,525,819.04|102,050,421.87|
|Interestincome|47,340,463.92|26,722,362.75|
|Assetimpairmentloss|||
|Add:Otherincome|37,349,655.22|5,955,256.85|
|Investmentincome(“-”forloss)|282,414,798.36|91,017,958.19|
|Including: Share of profit or loss of joint ventures andassociates|-7,560,003.70|-4,372,739.06|
|Gainonchangesinfairvalue(“-”forloss)|10,085,276.33|-47,067,901.39|
|Assetdisposalincome(“-”forloss)|607.74||
|2.Operatingprofit(“-”forloss)|-197,590,289.97|-162,980,355.53|
|Add:Non-operatingincome|966,927.34|8,944,099.57|
|Less:Non-operatingexpense|285,098.31|1,422,633.94|
|3.Profitbeforetax(“-”forloss)|-196,908,460.94|-155,458,889.90|
|Less:Incometaxexpense|-77,096,924.08|-45,753,296.57|
|4.Netprofit(“-”fornetloss)|-119,811,536.86|-109,705,593.33|
|4.1Netprofitfromcontinuingoperations(“-”fornetloss)|||
|4.2Netprofitfromdiscontinuedoperations(“-”fornetloss)|||
|5.Othercomprehensiveincome,netoftax|5,222,526.42|-476,538.62|
|5.1Itemsthatwillnotbereclassifiedtoprofitorloss|||
|5.1.1 Changes in net liabilities or assets caused byremeasurementsondefinedbenefitpensionschemes|||
|5.1.2Shareofothercomprehensiveincomeofinvesteesthatwillnotbereclassifiedtoprofitorlossunderequitymethod|||

KonkaGroupCo.,Ltd. ThirdQuarterReport2018
||||
|-|-|-|
|5.2 Items that may subsequently be reclassified to profit orloss|5,222,526.42|-476,538.62|
|5.2.1Shareofothercomprehensiveincomeofinvesteesthatwillbereclassifiedtoprofitorlossunderequitymethod|||
|5.2.2 Gain/Loss on changes in fair value ofavailable-for-salefinancialassets|4,296,185.76||
|5.2.3 Gain/Loss arising from reclassification ofheld-to-maturityinvestmentstoavailable-for-salefinancialassets|||
|5.2.4Effectivegain/lossoncashflowhedges|||
|5.2.5 Differences arising from translation of foreigncurrency-denominatedfinancialstatements|926,340.66|-476,538.62|
|5.2.6Other|||
|6.Totalcomprehensiveincome|-114,589,010.44|-110,182,131.95|
|7.Earningspershare|||
|7.1Basicearningspershare|||
|7.2Dilutedearningspershare|||

5.ConsolidatedIncomeStatementforQ1~Q3
Unit:RMB
||||
|-|-|-|
|Item|Q1~Q32018|Q1~Q32017|
|1.Revenue|29,761,729,899.11|20,163,618,985.63|
|Including:Operatingrevenue|29,761,729,899.11|20,163,618,985.63|
|Interestincome|||
|Premiumincome|||
|Handlingchargeandcommissionincome|||
|2.Operatingcostsandexpenses|30,546,938,674.14|20,247,905,896.83|
|Including:Costofsales|28,063,582,724.87|18,033,040,507.13|
|Interestexpense|||
|Handlingchargeandcommissionexpense|||
|Surrenders|||
|Netclaimspaid|||
|Netamountprovidedasinsurancecontractreserve|||
|Expenditureonpolicydividends|||
|Reinsurancepremiumexpense|||
|Taxesandsurcharges|49,903,363.92|106,221,136.53|
|Sellingexpense|1,614,517,042.56|1,484,033,496.13|
|Administrativeexpense|421,990,456.18|261,536,322.23|

KonkaGroupCo.,Ltd. ThirdQuarterReport2018
||||
|-|-|-|
|R&Dexpense|226,747,319.07|165,789,725.57|
|Financecosts|104,533,561.51|197,060,964.29|
|Including:Interestexpense|495,028,664.94|281,156,133.12|
|Interestincome|238,028,339.28|91,651,593.91|
|Assetimpairmentloss|65,664,206.03|223,744.95|
|Add:Otherincome|264,719,535.81|45,663,280.02|
|Investmentincome(“-”forloss)|802,351,913.03|175,753,593.36|
|Including: Share of profit or loss of joint ventures andassociates|13,656,793.55|-9,746,882.46|
|Gainonchangesinfairvalue(“-”forloss)|69,940,688.81|-136,677,198.92|
|Foreignexchangegain(“-”forloss)|||
|Assetdisposalincome(“-”forloss)|63,575,092.87||
|3.Operatingprofit(“-”forloss)|415,378,455.49|452,763.26|
|Add:Non-operatingincome|42,852,490.62|155,962,505.19|
|Less:Non-operatingexpense|11,871,912.02|9,132,194.96|
|4.Profitbeforetax(“-”forloss)|446,359,034.09|147,283,073.49|
|Less:Incometaxexpense|-132,872,432.79|12,468,362.62|
|5.Netprofit(“-”fornetloss)|579,231,466.88|134,814,710.87|
|5.1Netprofitfromcontinuingoperations(“-”fornetloss)|||
|5.2Netprofitfromdiscontinuedoperations(“-”fornetloss)|||
|NetprofitattributabletoownersoftheCompanyastheparent|429,834,688.51|128,845,749.12|
|Netprofitattributabletonon-controllinginterests|149,396,778.37|5,968,961.75|
|6.Othercomprehensiveincome,netoftax|-16,498,381.12|3,804,131.34|
|AttributabletoownersoftheCompanyastheparent|-18,225,153.33|3,793,051.23|
|6.1Itemsthatwillnotbereclassifiedtoprofitorloss|||
|6.1.1 Changes in net liabilities or assets caused byremeasurementsondefinedbenefitpensionschemes|||
|6.1.2 Share of other comprehensive income of investeesthatwillnotbereclassifiedtoprofitorlossunderequitymethod|||
|6.2 Items that may subsequently be reclassified to profit orloss|-18,225,153.33|3,793,051.23|
|6.2.1 Share of other comprehensive income of investeesthatwillbereclassifiedtoprofitorlossunderequitymethod|||
|6.2.2 Gain/Loss on changes in fair value ofavailable-for-salefinancialassets|-31,342.08|-11,326,667.93|
|6.2.3 Gain/Loss arising from reclassification ofheld-to-maturityinvestmentstoavailable-for-salefinancialassets|||

KonkaGroupCo.,Ltd. ThirdQuarterReport2018
||||
|-|-|-|
|6.2.4Effectivegain/lossoncashflowhedges|||
|6.2.5 Differences arising from translation of foreigncurrency-denominatedfinancialstatements|-18,193,811.25|15,119,719.16|
|6.2.6Other|||
|Attributabletonon-controllinginterests|1,726,772.21|11,080.11|
|7.Totalcomprehensiveincome|562,733,085.76|138,618,842.21|
|AttributabletoownersoftheCompanyastheparent|411,609,535.18|132,638,800.35|
|Attributabletonon-controllinginterests|151,123,550.58|5,980,041.86|
|8.Earningspershare|||
|8.1Basicearningspershare|0.1785|0.0535|
|8.2Dilutedearningspershare|0.1785|0.0535|

6.IncomeStatementoftheCompanyastheParentforQ1~Q3
Unit:RMB
||||
|-|-|-|
|Item|Q1~Q32018|Q1~Q32017|
|1.Operatingrevenue|10,997,211,162.08|9,910,535,075.58|
|Less:Costofsales|10,419,241,341.62|8,729,304,645.07|
|Taxesandsurcharges|13,586,744.27|16,947,221.66|
|Sellingexpense|1,115,535,743.30|1,080,921,951.42|
|Administrativeexpense|241,930,804.62|138,351,880.64|
|R&Dexpense|128,379,273.19|155,310,598.70|
|Financecosts|188,923,238.66|212,325,826.30|
|Including:Interestexpense|445,544,643.70|297,300,342.27|
|Interestincome|160,404,469.05|69,627,939.33|
|Assetimpairmentloss|36,873,991.62|2,244,928.43|
|Add:Otherincome|79,741,765.34|32,371,847.25|
|Investmentincome(“-”forloss)|1,441,862,076.64|168,781,887.76|
|Including: Share of profit or loss of joint ventures andassociates|5,680,179.60|-10,868,433.24|
|Gainonchangesinfairvalue(“-”forloss)|69,940,688.81|-110,323,281.75|
|Assetdisposalincome(“-”forloss)|19,557.06||
|2.Operatingprofit(“-”forloss)|444,304,112.65|-334,041,523.38|
|Add:Non-operatingincome|14,841,432.79|55,898,870.46|
|Less:Non-operatingexpense|5,725,462.45|4,011,872.35|
|3.Profitbeforetax(“-”forloss)|453,420,082.99|-282,154,525.27|
|Less:Incometaxexpense|-164,010,095.13|-83,867,535.94|

KonkaGroupCo.,Ltd. ThirdQuarterReport2018
||||
|-|-|-|
|4.Netprofit(“-”fornetloss)|617,430,178.12|-198,286,989.33|
|4.1Netprofitfromcontinuingoperations(“-”fornetloss)|||
|4.2Netprofitfromdiscontinuedoperations(“-”fornetloss)|||
|5.Othercomprehensiveincome,netoftax|5,546,547.44|-12,284,652.66|
|5.1Itemsthatwillnotbereclassifiedtoprofitorloss|||
|5.1.1 Changes in net liabilities or assets caused byremeasurementsondefinedbenefitpensionschemes|||
|5.1.2Shareofothercomprehensiveincomeofinvesteesthatwillnotbereclassifiedtoprofitorlossunderequitymethod|||
|5.2Itemsthatmaysubsequentlybereclassifiedtoprofitorloss|5,546,547.44|-12,284,652.66|
|5.2.1Shareofothercomprehensiveincomeofinvesteesthatwillbereclassifiedtoprofitorlossunderequitymethod|||
|5.2.2 Gain/Loss on changes in fair value ofavailable-for-salefinancialassets|4,296,185.76|-11,358,312.00|
|5.2.3 Gain/Loss arising from reclassification ofheld-to-maturityinvestmentstoavailable-for-salefinancialassets|||
|5.2.4Effectivegain/lossoncashflowhedges|||
|5.2.5 Differences arising from translation of foreigncurrency-denominatedfinancialstatements|1,250,361.68|-926,340.66|
|5.2.6Other|||
|6.Totalcomprehensiveincome|622,976,725.56|-210,571,641.99|
|7.Earningspershare|||
|7.1Basicearningspershare|||
|7.2Dilutedearningspershare|||

7.ConsolidatedCashFlowStatementforQ1~Q3
Unit:RMB
||||
|-|-|-|
|Item|Q1~Q32018|Q1~Q32017|
|1.Cashflowsfromoperatingactivities:|||
|Proceedsfromsaleofcommoditiesandrenderingofservices|24,472,986,972.47|12,987,769,338.60|
|Netincreaseincustomerdepositsandinterbankdeposits|||
|Netincreaseinborrowingsfromcentralbank|||
|Netincreaseinloansfromotherfinancialinstitutions|||
|Premiumsreceivedonoriginalinsurancecontracts|||
|Netproceedsfromreinsurance|||
|Netincreaseindepositsandinvestmentsofpolicyholders|||
|Net increase in proceeds from disposal of financial assets atfairvaluethroughprofitorloss|||

KonkaGroupCo.,Ltd. ThirdQuarterReport2018
||||
|-|-|-|
|Interest,handlingchargesandcommissionsreceived|||
|Netincreaseininterbankloansobtained|||
|Netincreaseinproceedsfromrepurchasetransactions|||
|Taxrebates|312,128,742.81|130,863,528.45|
|Cashgeneratedfromotheroperatingactivities|2,865,828,267.19|2,759,126,679.00|
|Subtotalofcashgeneratedfromoperatingactivities|27,650,943,982.47|15,877,759,546.05|
|Paymentsforcommoditiesandservices|24,117,693,794.31|11,185,702,814.55|
|Netincreaseinloansandadvancestocustomers|||
|Netincreaseindepositsincentralbankandininterbankloansgranted|||
|Paymentsforclaimsonoriginalinsurancecontracts|||
|Interest,handlingchargesandcommissionspaid|||
|Policydividendspaid|||
|Cashpaidtoandforemployees|1,235,221,504.02|713,115,942.78|
|Taxespaid|1,593,043,900.48|1,158,672,182.51|
|Cashusedinotheroperatingactivities|3,601,969,084.22|3,967,958,429.50|
|Subtotalofcashusedinoperatingactivities|30,547,928,283.03|17,025,449,369.34|
|Netcashgeneratedfrom/usedinoperatingactivities|-2,896,984,300.56|-1,147,689,823.29|
|2.Cashflowsfrominvestingactivities:|||
|Proceedsfromdisinvestment|45,531,154.28|224,007,998.00|
|Investmentincome|100,982,942.46|111,276,583.85|
|Net proceeds from disposal of fixed assets, intangible assetsandotherlong-livedassets|1,851,025.13|172,255.79|
|Net proceeds from disposal of subsidiaries or other businessunits|141,294,742.26||
|Cashgeneratedfromotherinvestingactivities|1,392,285,000.00|1,564,279,083.79|
|Subtotalofcashgeneratedfrominvestingactivities|1,681,944,864.13|1,899,735,921.43|
|Payments for acquisition of fixed assets, intangible assets andotherlong-livedassets|267,022,282.19|72,123,850.33|
|Paymentsforinvestments|450,546,156.00|2,022,767,387.50|
|Netincreaseinpledgedloansgranted|||
|Netpaymentsforacquisitionofsubsidiariesandotherbusinessunits|927,532,476.11||
|Cashusedinotherinvestingactivities|774,880,000.00|922,780,798.39|
|Subtotalofcashusedininvestingactivities|2,419,980,914.30|3,017,672,036.22|
|Netcashgeneratedfrom/usedininvestingactivities|-738,036,050.17|-1,117,936,114.79|

KonkaGroupCo.,Ltd. ThirdQuarterReport2018
||||
|-|-|-|
|3.Cashflowsfromfinancingactivities:|||
|Capitalcontributionsreceived|189,790,594.60||
|Including: Capitalcontributionsbynon-controllingintereststosubsidiaries|189,790,594.60||
|Increaseinborrowingsobtained|11,340,498,767.13|4,899,799,364.16|
|Netproceedsfromissuanceofbonds|||
|Cashgeneratedfromotherfinancingactivities|1,023,076.93||
|Subtotalofcashgeneratedfromfinancingactivities|11,531,312,438.66|4,899,799,364.16|
|Repaymentofborrowings|6,369,248,011.05|1,502,962,221.73|
|Paymentsforinterestanddividends|668,095,998.12|640,026,892.15|
|Including:Dividendspaidbysubsidiariestonon-controllinginterests|1,629,621.25||
|Cashusedinotherfinancingactivities|77,087,550.43|435,233,291.92|
|Subtotalofcashusedinfinancingactivities|7,114,431,559.60|2,578,222,405.80|
|Netcashgeneratedfrom/usedinfinancingactivities|4,416,880,879.06|2,321,576,958.36|
|4. Effect of foreign exchange rate changes on cash and cashequivalents|22,282,446.23|-41,200,286.25|
|5.Netincreaseincashandcashequivalents|804,142,974.56|14,750,734.03|
|Add:Cashandcashequivalents,beginningoftheperiod|3,097,899,703.76|1,743,269,944.67|
|6.Cashandcashequivalents,endoftheperiod|3,902,042,678.32|1,758,020,678.70|

8.CashFlowStatementoftheCompanyastheParentforQ1~Q3
Unit:RMB
||||
|-|-|-|
|Item|Q1~Q32018|Q1~Q32017|
|1.Cashflowsfromoperatingactivities:|||
|Proceedsfromsaleofcommoditiesandrenderingofservices|12,987,769,338.60|10,211,158,433.12|
|Taxrebates|130,863,528.45|76,021,688.23|
|Cashgeneratedfromotheroperatingactivities|2,759,126,679.00|2,170,305,324.47|
|Subtotalofcashgeneratedfromoperatingactivities|15,877,759,546.05|12,457,485,445.82|
|Paymentsforcommoditiesandservices|11,185,702,814.55|8,461,788,230.31|
|Cashpaidtoandforemployees|713,115,942.78|706,071,622.42|
|Taxespaid|1,158,672,182.51|94,128,545.77|
|Cashusedinotheroperatingactivities|3,967,958,429.50|4,917,518,293.15|
|Subtotalofcashusedinoperatingactivities|17,025,449,369.34|14,179,506,691.65|
|Netcashgeneratedfrom/usedinoperatingactivities|-1,147,689,823.29|-1,722,021,245.83|
|2.Cashflowsfrominvestingactivities:|||
|Proceedsfromdisinvestment|224,007,998.00|180,900,000.00|

KonkaGroupCo.,Ltd. ThirdQuarterReport2018
||||
|-|-|-|
|Investmentincome|111,276,583.85|163,986,057.87|
|Net proceeds from disposal of fixed assets, intangible assetsandotherlong-livedassets|172,255.79|189,841.88|
|Net proceeds from disposal of subsidiaries or other businessunits|||
|Cashgeneratedfromotherinvestingactivities|1,564,279,083.79|1,508,699,563.18|
|Subtotalofcashgeneratedfrominvestingactivities|1,899,735,921.43|1,853,775,462.93|
|Payments for acquisition of fixed assets, intangible assets andotherlong-livedassets|72,123,850.33|51,879,502.86|
|Paymentsforinvestments|2,022,767,387.50|804,349,598.00|
|Netpaymentsforacquisitionofsubsidiariesandotherbusinessunits|||
|Cashusedinotherinvestingactivities|922,780,798.39|2,361,142,417.74|
|Subtotalofcashusedininvestingactivities|3,017,672,036.22|3,217,371,518.60|
|Netcashgeneratedfrom/usedininvestingactivities|-1,117,936,114.79|-1,363,596,055.67|
|3.Cashflowsfromfinancingactivities:|||
|Capitalcontributionsreceived|||
|Increaseinborrowingsobtained|4,899,799,364.16|5,407,249,831.51|
|Netproceedsfromissuanceofbonds|||
|Cashgeneratedfromotherfinancingactivities||141,159,174.39|
|Subtotalofcashgeneratedfromfinancingactivities|4,899,799,364.16|5,548,409,005.90|
|Repaymentofborrowings|1,502,962,221.73|2,483,733,952.31|
|Paymentsforinterestanddividends|640,026,892.15|199,132,587.57|
|Cashusedinotherfinancingactivities|435,233,291.92|574,376.15|
|Sub-totalofcashusedinfinancingactivities|2,578,222,405.80|2,683,440,916.03|
|Netcashgeneratedfrom/usedinfinancingactivities|2,321,576,958.36|2,864,968,089.87|
|4. Effect of foreign exchange rate changes on cash and cashequivalents|-41,200,286.25|-1,161,524.85|
|5.Netincreaseincashandcashequivalents|14,750,734.03|-221,810,736.48|
|Add:Cashandcashequivalents,beginningoftheperiod|1,743,269,944.67|973,613,753.40|
|6.Cashandcashequivalents,endoftheperiod|1,758,020,678.70|751,803,016.92|

 IIIndependentAuditor’s Report
Indicatebytickmarkwhetherthefinancialstatementsabovehavebeenauditedbyanindependentauditor.□Yes√No
Thesefinancialstatementshavenotbeenauditedbysuchanauditor.
KonkaGroupCo.,Ltd. ThirdQuarterReport2018 TheBoard ofDirectors
Konka Group Co., Ltd. 30October 2018