KonkaGroupCo.,Ltd. FirstQuarterReport2019 KONKA GROUP CO., LTD.
FIRST QUARTER REPORT 2019
2019-41
April 2019
KonkaGroupCo.,Ltd. FirstQuarterReport2019 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. (hereinafter referred to as the “Company”) 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 ormaterial 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. FirstQuarterReport2019 Part II Key Corporate Information
I KeyFinancialInformation
Indicate bytick mark whether there isany retrospectively restated datum inthe tablebelow.
□ Yes√ No
|||||
|-|-|-|-|
||Q12019|Q12018|Change(%)|
|Operatingrevenue(RMB)|10,772,118,842.18|7,773,238,729.83|38.58%|
|Net profit attributable to the listed company’sshareholders(RMB)|85,566,720.43|55,758,297.40|53.46%|
|Net profit attributable to the listed company’sshareholdersbeforeexceptionalitems(RMB)|-418,684,690.19|-68,684,426.14|-509.58%|
|Net cash generated from/used in operatingactivities(RMB)|-540,740,144.72|-1,019,365,516.72|46.95%|
|Basicearningspershare(RMB/share)|0.0355|0.0232|53.02%|
|Dilutedearningspershare(RMB/share)|0.0355|0.0232|53.02%|
|Weightedaveragereturnonequity(%)|1.05%|0.70%|0.35%|
||31March2019|31December2018|Change(%)|
|Totalassets(RMB)|36,306,878,651.93|32,985,061,889.03|10.07%|
|Equity attributable to the listed company ’ sshareholders(RMB)|8,214,349,853.96|8,104,736,790.53|1.35%|

Exceptional gains and losses:
√ Applicable□ Not applicable
Unit:RMB
||||
|-|-|-|
|Item|Q12019|Note|
|Gainorlossondisposalofnon-currentassets(inclusiveofimpairmentallowancewrite-offs)|489,756,829.17||
|Government subsidieschargedtocurrentprofit orloss(exclusiveofgovernment subsidiesgivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsasperthegovernment’suniformstandards)|38,562,981.71||
|Gainorlossonassetsentrustedtootherentitiesforinvestmentormanagement|73,291,331.14||
|Gainorlossonfair-valuechangesintradingfinancialassetsandliabilities&investmentincomefrom disposal of trading financial assets and liabilities and available-for-sale financial assets(exclusiveofeffectiveportionofhedgesthatariseintheCompany’sordinarycourseofbusiness)|-13,291,264.69||
|Gainorlossonloanentrustments|404,088.05||

KonkaGroupCo.,Ltd. FirstQuarterReport2019
||||
|-|-|-|
|Non-operatingincomeandexpenseotherthantheabove|9,548,911.72||
|Less:Incometaxeffects|19,670,715.54||
|Non-controllinginterestseffects(netoftax)|74,350,750.94||
|Total|504,251,410.62|--|

 Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities tothePublic—Exceptional Gain/Loss Items:
√ Applicable□ Not applicable
||||
|-|-|-|
|Item|Amount(RMB)|Reason|
|Taxrebatesonsoftware|9,929,550.92|Governmentsubsidies given in theCompany’s ordinary courseofbusiness atfixedquotasoramountsaspergovernment’suniformstandards|

II Total Numberof Shareholders and HoldingsofTop 10Shareholders at 31March 2019 1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as wellas Holdings ofTop10Shareholders
Unit:share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Number of ordinary shareholdersattheperiod-end|84,394|||Number of preferred shareholders with resumedvotingrightsattheperiod-end(ifany)|||||0|
|Top10shareholders||||||||||
|Nameofshareholder||Natureofshareholder|Shareholdingpercentage||Totalsharesheld|Restrictedsharesheld|Sharesinpledgeorfrozen|||
||||||||Status|Shares||
|OVERSEASCHINESETOWNENTERPRISESCO.,LTD||State-ownedlegalperson|21.75%||523,746,932|0||||
|CITIC SECURITIES BROKERAGE(HONGKONG)CO.,LTD.||Foreignlegalperson|7.56%||182,100,202|0||||
|HOLYTIMEGROUPLIMITED||Foreignlegalperson|2.33%||56,139,100|0||||
|GUOYUANSECURITIESBROKER(HK)CO.,LTD.||Foreignlegalperson|2.25%||54,203,779|0||||
|GAOLINGFUND,L.P.||Foreignlegalperson|2.19%||52,801,250|0||||
|ZHANGXIAOYU||Domesticnaturalperson|1.09%||26,292,578|0||||
|NAMNGAI||Foreignnaturalperson|0.93%||22,453,440|0||||

KonkaGroupCo.,Ltd. FirstQuarterReport2019
|||||||||
|-|-|-|-|-|-|-|-|
|HongKongSecuritiesClearingCompanyLimited||Foreignlegalperson|0.91%|21,970,787||0||
|CHINAMERCHANTSSECURITIES(HK)LIMITED||State-ownedlegalperson|0.88%|21,214,624||0||
|National Social Security Fund 118Portfolio||Other|0.83%|20,099,537||0||
|Top10unrestrictedshareholders||||||||
|Nameofshareholder|||Unrestrictedsharesheld||Sharesbytype|||
||||||Type||Shares|
|OVERSEASCHINESETOWNENTERPRISESCO.,LTD|||523,746,932||RMB-denominatedordinarystock||523,746,932|
|CITIC SECURITIES BROKERAGE (HONG KONG)CO.,LTD.|||182,100,202||Domesticallylistedforeignstock||182,100,202|
|HOLYTIMEGROUPLIMITED|||56,139,100||Domesticallylistedforeignstock||56,139,100|
|GUOYUANSECURITIESBROKER(HK)CO.,LTD.|||54,203,779||Domesticallylistedforeignstock||54,203,779|
|GAOLINGFUND,L.P.|||52,801,250||Domesticallylistedforeignstock||52,801,250|
|ZHANGXIAOYU|||26,292,578||RMB-denominatedordinarystock||26,292,578|
|NAMNGAI|||22,453,440||Domesticallylistedforeignstock||22,453,440|
|HongKongSecuritiesClearingCompanyLimited|||21,970,787||RMB-denominatedordinarystock||21,970,787|
|CHINAMERCHANTSSECURITIES(HK)LIMITED|||21,214,624||Domesticallylistedforeignstock||21,214,624|
|NationalSocialSecurityFund118Portfolio|||20,099,537||RMB-denominatedordinarystock||20,099,537|
|Related oracting-in-concert partiesamong the shareholdersabove|Happy Bloom Investment Limited, a wholly-owned subsidiary of the Company’s first majorityshareholder OverseasChineseTown EnterprisesCo.(“OCTGroup” for short),holds180,001,110and 18,360,000 ordinary shares in the Company respectively through CITIC Securities Brokerage(Hong Kong) Co., Ltd. and China Merchants Securities (HK) Limited. Happy Bloom InvestmentLimitedandOverseasChineseTownEnterprisesCo.arepartiesactinginconcert.Otherthanthat,itisunknownwhethertheothershareholdersarerelatedpartiesoracting-in-concertpartiesornot.|||||||
|Top 10 ordinaryshareholders involved insecuritiesmargintrading|Zhang Xiaoyu holds 26,292,578 A-shares in the Company through her account of collateralsecuritiesformargintradinginHuaxiSecuritiesCo.,Ltd.|||||||

KonkaGroupCo.,Ltd. FirstQuarterReport2019 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. FirstQuarterReport2019 Part III Significant Events
I Changes inKeyFinancial StatementLineItems andExplanation ofwhy
√ Applicable□ Not applicable
(I) In the Reporting Period, the Company carried on with its long-term development strategy of “Technology+ Industry+ Park”, accelerating its strategic transformation and upgrade with respect to “One Centric Orientation, Two Development Paths, Three Development Strategies and Four Business Groups”.
The following results have been achieved during theReporting Period:
1. The Company continued to increase its investment inR&D and strengthen theR&D team so as to steadily improve its coreR&D strength. Following the National Second Prize for Progress in Science and Technology for the project of the Digital TV Broadcast System and the Domestication of Core Chips where the Company took part in, the project of the Research and Application of Key Quality Management Technologies for Food in Refrigerators which was led by the Company won the Third Prizefor Progress in Science and Technology 2018from ChinaLight Industry Council. 2. For the Reporting Period, the Company is expected to achieve operating revenue of approximately RMB10.772billion, up around38.58% year-on-year. To be specific, the multi-media business saw strong growth in retail and overseas sales thanks to multiple system reforms after the business had been transferred to Shenzhen Konka Electronics Technology Co., Ltd. for operation. The white goods business reported sales revenue of over RMB1 billion for the Reporting Period, up around47% year-on-year, due to a larger scale supported by the two brands of “Konka+ Frestec”. The new businesses of water management, renewable resources recycling and new materials maintained fast growth in operating revenue in the Reporting Period, in addition to winning the bids for environmental protection projects worth around RMB3.2 billion.
3. The industrial park projects in Chuzhou, Yibin, Nanjing, Suining, etc. were carried forward. Construction was officially started for the Konka Smart Appliances and Equipment Industrial Park in Chuzhou, the Konka Smart Terminals High-Tech Industrial Park in Yibin, the Konka Electronics Technology Industrial Park inSuining, etc.
Exceptional items have an effect of RMB504 million on the consolidated net profit achieved during the Reporting Period, which were primarily exceptional gains on the transfer of some equity interests insubsidiaries and onthedisposal ofsomeassets of subsidiaries.
(II) Changes inKey Financial Statement Line Items
Unit:RMB’0,000
KonkaGroupCo.,Ltd. FirstQuarterReport2019
|||||||
|-|-|-|-|-|-|
|Item|31March2019|1January2019|Change|Change|Explanationofwhy|
|Investmentsinotherequityinstruments|163,379.93|63,366.49|100,013.44|157.83%|NewfundinvestmentsduringtheReportingPeriod|
|Long-termborrowings|80,400.00|44,500.00|35,900.00|80.67%|Increaseinnewlong-termborrowingsofsubsidiaries|
|Item|Q12019|Q12018|Change|Change|Explanationofwhy|
|Operatingrevenue|1,077,211.88|777,323.87|299,888.01|38.58%|ExpansionofthesupplychaintradebusinessandthenewenvironmentalprotectionbusinessduringtheReportingPeriod|
|Costofsales|1,015,581.43|714,481.34|301,100.09|42.14%||
|Financecosts|27,809.24|6,108.64|21,700.60|355.24%|IssuanceofRMB2.5billionofcorporatebondsduringtheReportingPeriod|
|Gainonchangesinfairvalue|-300.54|3,414.22|-3,714.76|-108.80%|Changesinthefairvalueofforwardforeignexchangecontracts|
|Returnoninvestment|26,688.91|3,678.60|23,010.31|625.52%|TransferofequityinterestsinsubsidiariesduringtheReportingPeriod|

II Progress, InfluenceandSolutions with regard to SignificantEvents
√ Applicable□ Not applicable
1. Private Placement of A-share: The proposal on private placement of A-share has been reviewed and approved by the board of directors of the Company and been submitted to the State-owned Assets Supervision and Administration Commission and general meeting of the Company. For details about the private placement of A-share, please refer to the announcement of the Company disclosed oncninfo.com.cn.
2. Strategic cooperation agreement with Chuzhou Municipal Government: Currently, the project land has been awarded for Konka Intelligent Home Appliance and Equipment Industrial Park Project (including Ankang Intelligent Factory) and Science and Technology Innovation Center Project Phase II and preparations are being made for thecommencement of construction; in addition, the purchase and storage of the original plant of Anhui Konka Electronic Co., Ltd. by the government has been completed. in terms of Opto-electronics Industrial Fund Project (namely, Chuzhou Huike Intelligent HomeAppliance Industry Investment Partnership (limited partnership)), the investment agreement has been signed and changes in business registration have been completed; in respect of Konka New Retail Headquarters Project, the project company has been established; interms ofKonka Minghu K-CareTown Project, negotiations are being carried out. 3. As for projects of Dongguancity’s new plant and Suining Konka Electronic Technological Industrial Park, preparations are underway and the Company is waiting for the local government to put out theproject target land forbids.
KonkaGroupCo.,Ltd. FirstQuarterReport2019 4. As for the project of Yibin Smart Terminal High-Tech Industrial Park, the land use right transfer agreement has been signed and theConstruction officially started.
5. As for the project of Nanjing K-Star Cloud Network Headquarters, the land use right transfer agreement has been signed and the report to the Planning Bureau for approval and piling are underway. The Company has transferred the control power over the project company during the Reporting Period.
6. Private placement of corporate bonds, asset securitization of commercial factoring and asset securitization of accounts receivable: During the Reporting Period, the private placement of corporate bonds (Phase I) of RMB2.5 billion has been issued; the asset securitization of commercial factoring and asset securitization ofaccounts receivable are in thedeclaration.
7. Launch of establishing the Orient Konka IndustrialM&A Fund: Currently, the fund has completed the filing registration for private placement fund and respectively holds11.95% of shares in Jiangxi Yahua Electronic Materials Co., Ltd.,2.75% of shares in Shenzhen Genew Technologies Co., Ltd.,5% of shares in Roshow Technology Co., Ltd., and11.73% of shares in Shenzhen Gren RF Communication Co., Ltd. through investments.
Progress ofany sharerepurchase:
□ Applicable√ Not applicable
Progress ofany reduction oftherepurchased shares through centralized bidding:
□ Applicable√ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties, Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during the Reporting Period
□ Applicable√ Not applicable
No suchcases in theReporting Period.
IVOperatingPerformance ForecastforH1 2019
Warning of a forecast loss on or a forecast significant year-on-year change in the net profit of H1 2019,as well as explanationof why:
□ Applicable√ Not applicable
VSecurities Investments
KonkaGroupCo.,Ltd. FirstQuarterReport2019□ Applicable√ Not applicable
No suchcases in theReporting Period.
VI Investments inDerivative FinancialInstruments
√ Applicable□ Not applicable
|||
|-|-|
|Funding source for derivativeinvestment|U.S.dollarfinancings|
|Legal matters involved (ifapplicable)|None|
|Disclosure date of boardannouncementapprovingderivativeinvestment(ifany)|24May2014|
|Disclosure date of shareholders ’meeting announcement approvingderivativeinvestment(ifany)|10June2014|
|Analysis of risks and controlmeasuresassociatedwithderivativeinvestments held in ReportingPeriod(includingbutnotlimitedtomarket risk, liquidity risk, creditrisk, operational risk, legal risk,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 incompliance with the applicable laws and regulations. We have formulated theManagement Rules of Konka Group Co., Ltd. for Investment In Derivative FinancialInstruments,makingcleartherelevantconsiderationandapprovalprocedure,riskcontrol,etc.Wealwayssign forward forexcontractswithlargebankssuchastheBankofChina,which operate steadily and have good credit standing, which could help prevent loss onforwardforexcontractsduetobankfailure.|
|Changes in market prices or fairvalue of derivative investments inReporting Period (fair valueanalysis should includemeasurement method and relatedassumptionsandparameters)|Howwe usually measure thefair value of derivative financial instruments: Based ontheforward forex sales and purchase contracts that are signed between the Company andbanksand have not expired in a Reporting Period, we recognize thedifferences betweenthequotationsforthesecontractsonthebalancesheetdatesprovidedbythebanksandthecontractual pricesastransactionalfinancial assets orliabilities, andtheprofit/lossonfairvaluechangesisrecognizedaccordingly.Becausethesecontractshavelockedinexchangerates,nochangeswilloccurwhencomparingthefairvalueonsigningdateswiththatondeliverydates.|
|Material 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 coststhroughfinancial instruments, because it couldeffectively reduce the currencyrisk whensecuring foreign-currency financing. The Company has formulated the internal controlmechanismforinvestmentinderivativefinancialinstruments,andtherelevantriskcontrolmeasuresthattheCompanyhastakenareconsideredeffective.|

Unit:RMB’0,000
KonkaGroupCo.,Ltd. FirstQuarterReport2019
||||||
|-|-|-|-|-|
|Typeofderivativefinancialinstrument|Beginningcontractualamount|Endingcontractualamount|Gain/lossinReportingPeriod|EndinginvestmentamountasapercentageoftheCompany’sendingnetassetvalue|
|Forwardforexcontract|61,356.18|0|-1,329.13|0%|

 VII Communications with the Investment Community such as Researches, Inquiries and Interviews duringthe Reporting Period
□ Applicable√ Not applicable
No suchcases in theReporting Period.
VIII Irregularities in theProvisionof Guarantees
□ Applicable√ Not applicable
No suchcases in theReporting Period.
IX Occupation of theCompany’s Capital by the Controlling Shareholder or Its Related Parties forNon-Operating Purposes
□ Applicable√ Not applicable
No suchcases in theReporting Period.
KonkaGroupCo.,Ltd. FirstQuarterReport2019 Part IV Financial Statements
I FinancialStatements
1.Consolidated BalanceSheet
Prepared byKonka Group Co., Ltd.
31March 2019
Unit:RMB
||||
|-|-|-|
|Item|31March2019|31December2018|
|Currentassets:|||
|Monetarycapital|5,093,938,081.12|4,348,144,129.53|
|Settlementreserve|||
|Interbankloansgranted|||
|Tradingfinancialassets|||
|Financialassetsatfairvaluethroughprofitorloss||5,464,984.92|
|Derivativefinancialassets|||
|Notesandaccountsreceivable|7,944,980,114.76|7,787,765,540.57|
|Including:Notesreceivable|2,821,032,497.08|3,329,711,954.15|
|Accountsreceivable|5,123,947,617.68|4,458,053,586.42|
|Prepayments|1,425,010,029.61|1,036,979,167.56|
|Premiumsreceivable|||
|Reinsurancereceivables|||
|Receivablereinsurancecontractreserve|||
|Otherreceivables|1,196,449,279.62|410,804,180.50|
|Including:Interestreceivable|8,464,023.15|4,059,682.40|
|Dividendsreceivable|547,848.62|547,848.62|
|Financialassetspurchasedunderresaleagreements|||
|Inventories|5,865,453,009.98|5,487,605,227.05|
|Contractualassets|||
|Assetsclassifiedasheldforsale|||
|Currentportionofnon-currentassets|31,850,209.83|22,318,208.13|
|Othercurrentassets|2,525,632,062.22|2,744,216,141.98|
|Totalcurrentassets|24,083,312,787.14|21,843,297,580.24|

KonkaGroupCo.,Ltd. FirstQuarterReport2019
||||
|-|-|-|
|Non-currentassets:|||
|Loansandadvancestocustomers|||
|Investmentsindebtobligations|||
|Available-for-salefinancialassets||633,664,881.33|
|Investmentsinotherdebtobligations|||
|Held-to-maturityinvestments|||
|Long-termreceivables|393,555,234.81|390,793,038.05|
|Long-termequityinvestments|2,626,830,539.59|2,637,780,825.53|
|Investmentsinotherequityinstruments|1,633,799,281.33||
|Othernon-currentfinancialassets|||
|Investmentproperty|209,416,537.15|210,824,355.72|
|Fixedassets|2,231,560,837.86|2,410,226,495.81|
|Constructioninprogress|2,168,706,288.15|2,176,871,530.80|
|Productivelivingassets|||
|Oilandgasassets|||
|Right-of-useassets|||
|Intangibleassets|756,133,351.86|737,776,686.34|
|R&Dexpense|5,585,235.10||
|Goodwill|855,691,423.75|855,691,423.75|
|Long-termprepaidexpense|98,278,020.48|111,223,426.77|
|Deferredincometaxassets|740,837,273.20|639,433,954.30|
|Othernon-currentassets|503,171,841.51|337,477,690.39|
|Totalnon-currentassets|12,223,565,864.79|11,141,764,308.79|
|Totalassets|36,306,878,651.93|32,985,061,889.03|
|Currentliabilities:|||
|Short-termborrowings|13,529,952,786.20|13,884,132,931.63|
|Borrowingsfromcentralbank|||
|Interbankloansobtained|||
|Tradingfinancialliabilities|||
|Financialliabilitiesatfairvaluethroughprofitorloss||2,459,603.25|
|Derivativefinancialliabilities|||
|Notesandaccountspayable|5,611,816,434.78|5,225,053,739.80|
|Advancesfromcustomers|749,144,700.27|723,227,529.20|
|Financialassetssoldunderrepurchaseagreements|||

KonkaGroupCo.,Ltd. FirstQuarterReport2019
||||
|-|-|-|
|Customerdepositsandinterbankdeposits|||
|Payablesforactingtradingofsecurities|||
|Payablesforunderwritingofsecurities|||
|Payrollpayable|219,858,418.19|376,506,567.71|
|Taxespayable|367,779,468.06|288,004,192.44|
|Otherpayables|2,353,541,235.25|2,024,657,277.74|
|Including:Interestpayable|53,429,282.92|27,230,631.41|
|Dividendspayable|||
|Handlingchargesandcommissionspayable|||
|Reinsurancepayables|||
|Contractualliabilities|||
|Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale|||
|Currentportionofnon-currentliabilities|116,352,928.61|151,792,404.13|
|Othercurrentliabilities|||
|Totalcurrentliabilities|22,948,445,971.36|22,675,834,245.90|
|Non-currentliabilities:|||
|Insurancecontractreserve|||
|Long-termborrowings|804,000,000.00|445,000,000.00|
|Bondspayable|2,492,433,176.12||
|Including:Preferredshares|||
|Perpetualbonds|||
|Leaseliabilities|||
|Long-termpayables|154,173,931.79|128,374,597.41|
|Long-termpayrollpayable|8,421,886.82|8,792,614.98|
|Provisions|13,206,591.51|21,772,898.37|
|Deferredincome|114,746,270.51|112,899,128.24|
|Deferredincometaxliabilities|138,434,874.96|141,020,093.34|
|Othernon-currentliabilities|||
|Totalnon-currentliabilities|3,725,416,731.71|857,859,332.34|
|Totalliabilities|26,673,862,703.07|23,533,693,578.24|
|Owners’ equity:|||
|Sharecapital|2,407,945,408.00|2,407,945,408.00|
|Otherequityinstruments|||
|Including:Preferredshares|||

KonkaGroupCo.,Ltd. FirstQuarterReport2019
||||
|-|-|-|
|Perpetualbonds|||
|Capitalreserves|208,356,624.21|208,356,624.21|
|Less:Treasurystock|||
|Othercomprehensiveincome|13,476,560.74|-10,538,219.08|
|Specialreserves|31,563.18||
|Surplusreserves|1,227,564,785.19|1,227,564,785.19|
|Generalreserve|||
|Retainedearnings|4,356,974,912.64|4,271,408,192.21|
|TotalequityattributabletoownersoftheCompanyastheparent|8,214,349,853.96|8,104,736,790.53|
|Non-controllinginterests|1,418,666,094.90|1,346,631,520.26|
|Totalowners’ equity|9,633,015,948.86|9,451,368,310.79|
|Totalliabilitiesandowners’ equity|36,306,878,651.93|32,985,061,889.03|

 Legal representative: Liu Fengxi CFO: Li Chunlei Head ofthe financial department: Feng Junxiu 2.BalanceSheet oftheCompany as theParent
Unit:RMB
||||
|-|-|-|
|Item|31March2019|31December2018|
|Currentassets:|||
|Monetarycapital|2,039,941,002.17|2,124,335,536.69|
|Tradingfinancialassets|||
|Financialassetsatfairvaluethroughprofitorloss||5,464,984.92|
|Derivativefinancialassets|||
|Notesandaccountsreceivable|9,948,341,557.62|9,608,713,113.32|
|Including:Notesreceivable|2,034,245,702.52|2,181,466,683.90|
|Accountsreceivable|7,914,095,855.10|7,427,246,429.42|
|Prepayments|1,153,285,698.97|1,019,335,571.49|
|Otherreceivables|8,179,357,398.45|6,667,463,126.57|
|Including:Interestreceivable|4,469,124.64|5,769,663.24|
|Dividendsreceivable|||
|Inventories|334,890,754.57|254,225,716.41|
|Contractualassets|||
|Assetsclassifiedasheldforsale|||
|Currentportionofnon-currentassets|||
|Othercurrentassets|63,944,713.32|77,249,216.99|
|Totalcurrentassets|21,719,761,125.10|19,756,787,266.39|

KonkaGroupCo.,Ltd. FirstQuarterReport2019
||||
|-|-|-|
|Non-currentassets:|||
|Investmentsindebtobligations|||
|Available-for-salefinancialassets||326,164,881.33|
|Investmentsinotherdebtobligations|||
|Held-to-maturityinvestments|||
|Long-termreceivables|||
|Long-termequityinvestments|6,598,799,520.65|6,182,962,034.71|
|Investmentsinotherequityinstruments|326,164,881.33||
|Othernon-currentfinancialassets|||
|Investmentproperty|209,416,537.15|210,824,355.72|
|Fixedassets|457,239,715.10|462,721,018.30|
|Constructioninprogress|189,978,680.80|157,356,696.30|
|Productivelivingassets|||
|Oilandgasassets|||
|Right-of-useassets|||
|Intangibleassets|82,587,720.54|83,593,959.11|
|R&Dexpense|||
|Goodwill|||
|Long-termprepaidexpense|71,609,517.08|80,388,949.97|
|Deferredincometaxassets|623,645,261.76|516,879,201.66|
|Othernon-currentassets|20,000,000.00|20,000,000.00|
|Totalnon-currentassets|8,579,441,834.41|8,040,891,097.10|
|Totalassets|30,299,202,959.51|27,797,678,363.49|
|Currentliabilities:|||
|Short-termborrowings|8,263,307,897.40|8,179,564,987.70|
|Tradingfinancialliabilities|||
|Financialliabilitiesatfairvaluethroughprofitorloss||2,459,603.25|
|Derivativefinancialliabilities|||
|Notesandaccountspayable|9,774,999,094.02|9,990,213,911.08|
|Advancesfromcustomers|271,524,966.93|306,650,717.69|
|Contractualliabilities|||
|Payrollpayable|79,755,260.85|146,199,496.44|
|Taxespayable|11,310,894.61|10,913,871.30|
|Otherpayables|2,620,390,954.14|2,011,494,378.65|

KonkaGroupCo.,Ltd. FirstQuarterReport2019
||||
|-|-|-|
|Including:Interestpayable|49,002,780.48|24,158,666.48|
|Dividendspayable|||
|Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale|||
|Currentportionofnon-currentliabilities||40,000,000.00|
|Othercurrentliabilities|||
|Totalcurrentliabilities|21,021,289,067.95|20,687,496,966.11|
|Non-currentliabilities:|||
|Long-termborrowings|244,000,000.00|245,000,000.00|
|Bondspayable|2,492,433,176.12||
|Including:Preferredshares|||
|Perpetualbonds|||
|Leaseliabilities|||
|Long-termpayables|||
|Long-termpayrollpayable|||
|Provisions|206,591.51|206,591.51|
|Deferredincome|72,201,734.18|75,705,476.93|
|Deferredincometaxliabilities||751,345.42|
|Othernon-currentliabilities|||
|Totalnon-currentliabilities|2,808,841,501.81|321,663,413.86|
|Totalliabilities|23,830,130,569.76|21,009,160,379.97|
|Owners’ equity:|||
|Sharecapital|2,407,945,408.00|2,407,945,408.00|
|Otherequityinstruments|||
|Including:Preferredshares|||
|Perpetualbonds|||
|Capitalreserves|114,018,066.79|114,018,066.79|
|Less:Treasurystock|||
|Othercomprehensiveincome|-1,182,217.31|-1,182,217.31|
|Specialreserves|||
|Surplusreserves|1,227,564,785.19|1,227,564,785.19|
|Retainedearnings|2,720,726,347.08|3,040,171,940.85|
|Totalowners’ equity|6,469,072,389.75|6,788,517,983.52|
|Totalliabilitiesandowners’ equity|30,299,202,959.51|27,797,678,363.49|

KonkaGroupCo.,Ltd. FirstQuarterReport2019 3.Consolidated Income Statement
Unit:RMB
||||
|-|-|-|
|Item|Q12019|Q12018|
|1.Revenue|10,772,118,842.18|7,773,238,729.83|
|Including:Operatingrevenue|10,772,118,842.18|7,773,238,729.83|
|Interestincome|||
|Premiumincome|||
|Handlingchargeandcommissionincome|||
|2.Costsandexpenses|11,202,465,172.32|7,882,064,997.46|
|Including:Costofsales|10,155,814,290.20|7,144,813,360.27|
|Interestexpense|||
|Handlingchargeandcommissionexpense|||
|Surrenders|||
|Netclaimspaid|||
|Netamountprovidedasinsurancecontractreserve|||
|Expenditureonpolicydividends|||
|Reinsurancepremiumexpense|||
|Taxesandsurcharges|18,475,034.55|13,589,602.99|
|Sellingexpense|528,175,102.68|515,116,761.90|
|Administrativeexpense|166,378,779.54|98,571,374.10|
|R&Dexpense|60,488,366.07|63,660,743.95|
|Financecosts|278,092,405.94|61,086,438.88|
|Including:Interestexpense|270,257,047.31|80,250,454.16|
|Interestincome|42,801,685.68|73,576,813.30|
|Assetimpairmentloss|-4,958,806.66|-14,773,284.63|
|Creditimpairmentloss|||
|Add:Otherincome|33,914,982.48|79,427,673.98|
|Returnoninvestment(“-” forloss)|266,889,127.97|36,786,042.34|
|Including: Share of profit or loss of joint ventures andassociates|5,251,729.37|6,970,000.00|
|Foreignexchangegain(“-” forloss)|||
|Netgainonexposurehedges(“-” forloss)|||
|Gainonchangesinfairvalue(“-” forloss)|-3,005,381.67|34,142,182.67|
|Assetdisposalincome(“-” forloss)|293,705,640.64||

KonkaGroupCo.,Ltd. FirstQuarterReport2019
||||
|-|-|-|
|3.Operatingprofit(“-” forloss)|161,158,039.28|41,529,631.36|
|Add:Non-operatingincome|28,855,410.44|84,351,129.33|
|Less:Non-operatingexpense|4,995,457.15|2,031,498.28|
|4.Profitbeforetax(“-” forloss)|185,017,992.57|123,849,262.41|
|Less:Incometaxexpense|26,564,577.49|19,428,807.03|
|5.Netprofit(“-” fornetloss)|158,453,415.08|104,420,455.38|
|5.1Byoperatingcontinuity|||
|5.1.1Netprofitfromcontinuingoperations(“-” fornetloss)|||
|5.1.2Netprofitfromdiscontinuedoperations(“-” fornetloss)|||
|5.2Byownership|||
|5.2.1 Net profit attributable to owners of the Company as theparent|85,566,720.43|55,758,297.40|
|5.2.1Netprofitattributabletonon-controllinginterests|72,886,694.65|48,662,157.98|
|6.Othercomprehensiveincome,netoftax|23,162,659.81|9,213,157.17|
|AttributabletoownersoftheCompanyastheparent|24,014,779.82|9,874,124.52|
|6.1Itemsthatwillnotbereclassifiedtoprofitorloss|||
|6.1.1 Changes caused by remeasurements on defined benefitpensionschemes|||
|6.1.2 Other comprehensive income that will not bereclassifiedtoprofitorlossundertheequitymethod|||
|6.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments|||
|6.1.4Changesinthefairvalueofthecompany’screditrisks|||
|6.1.5Other|||
|6.2Itemsthatwillbereclassifiedtoprofitorloss|24,014,779.82|9,874,124.52|
|6.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod|||
|6.2.2 Changes in the fair value of investments in other debtobligations|||
|6.2.3 Gain/Loss on changes in the fair value ofavailable-for-salefinancialassets||-31,342.08|
|6.2.4 Other comprehensive income arising from thereclassificationoffinancialassets|||
|6.2.5 Gain/Loss arising from the reclassification ofheld-to-maturityinvestmentstoavailable-for-salefinancialassets|||
|6.2.6 Allowance for credit impairments in investments inotherdebtobligations|||
|6.2.7Reserveforcashflowhedges|||

KonkaGroupCo.,Ltd. FirstQuarterReport2019
||||
|-|-|-|
|6.2.8 Differences arising from the translation of foreigncurrency-denominatedfinancialstatements|24,014,779.82|9,905,466.60|
|6.2.9Other|||
|Attributabletonon-controllinginterests|-852,120.01|-660,967.35|
|7.Totalcomprehensiveincome|181,616,074.89|113,633,612.55|
|AttributabletoownersoftheCompanyastheparent|109,581,500.25|65,632,421.92|
|Attributabletonon-controllinginterests|72,034,574.64|48,001,190.63|
|8.Earningspershare|||
|8.1Basicearningspershare|0.0355|0.0232|
|8.2Dilutedearningspershare|0.0355|0.0232|

 Legal representative: Liu Fengxi CFO: Li Chunlei Head ofthe financial department: Feng Junxiu 4.Income Statementofthe Companyas theParent
Unit:RMB
||||
|-|-|-|
|Item|Q12019|Q12018|
|1.Operatingrevenue|3,159,459,959.20|3,669,669,375.96|
|Less:Costofsales|3,084,291,674.08|3,269,110,540.85|
|Taxesandsurcharges|1,508,984.24|7,177,383.09|
|Sellingexpense|318,153,101.41|378,868,998.55|
|Administrativeexpense|60,368,923.38|56,981,287.15|
|R&Dexpense|11,416,023.40|39,367,237.26|
|Financecosts|185,005,604.01|92,033,331.44|
|Including:Interestexpense|246,745,502.24|132,054,494.09|
|Interestincome|109,403,676.64|69,508,480.87|
|Assetimpairmentloss|||
|Creditimpairmentloss|||
|Add:Otherincome|13,187,319.83|29,928,292.31|
|Returnoninvestment(“-” forloss)|64,398,528.84|222,948,489.00|
|Including: Share of profit or loss of joint ventures andassociates||6,970,000.00|
|Netgainonexposurehedges(“-” forloss)|||
|Gainonchangesinfairvalue(“-” forloss)|-3,005,381.67|34,142,182.67|
|Assetdisposalincome(“-” forloss)|||
|2.Operatingprofit(“-” forloss)|-426,703,884.32|113,149,561.60|
|Add:Non-operatingincome|235,648.04|13,919,212.26|
|Less:Non-operatingexpense|494,763.01|1,773,382.89|

KonkaGroupCo.,Ltd. FirstQuarterReport2019
||||
|-|-|-|
|3.Profitbeforetax(“-” forloss)|-426,962,999.29|125,295,390.97|
|Less:Incometaxexpense|-107,517,405.52|-20,030,289.07|
|4.Netprofit(“-” fornetloss)|-319,445,593.77|145,325,680.04|
|4.1Netprofitfromcontinuingoperations(“-” fornetloss)|||
|4.2Netprofitfromdiscontinuedoperations(“-” fornetloss)|||
|5.Othercomprehensiveincome,netoftax||5,222,526.42|
|5.1Itemsthatwillnotbereclassifiedtoprofitorloss|||
|5.1.1 Changes caused by remeasurements on defined benefitpensionschemes|||
|5.1.2 Other comprehensive income that will not be reclassifiedtoprofitorlossundertheequitymethod|||
|5.1.3 Changes in the fair value of investments in other equityinstruments|||
|5.1.4Changesinthefairvalueofthecompany’screditrisks|||
|5.1.5Other|||
|5.2Itemsthatwillbereclassifiedtoprofitorloss||5,222,526.42|
|5.2.1 Other comprehensive income that will be reclassified toprofitorlossundertheequitymethod|||
|5.2.2 Changes in the fair value of investments in other debtobligations|||
|5.2.3Gain/Lossonchangesinthefairvalueofavailable-for-salefinancialassets||4,296,185.76|
|5.2.4 Other comprehensive income arising from thereclassificationoffinancialassets|||
|5.2.5 Gain/Loss arising from the reclassification ofheld-to-maturityinvestmentstoavailable-for-salefinancialassets|||
|5.2.6Allowance for credit impairments in investments in otherdebtobligations|||
|5.2.7Reserveforcashflowhedges|||
|5.2.8 Differences arising from the translation of foreigncurrency-denominatedfinancialstatements||926,340.66|
|5.2.9Other|||
|6.Totalcomprehensiveincome|-319,445,593.77|150,548,206.46|
|7.Earningspershare|||
|7.1Basicearningspershare|||
|7.2Dilutedearningspershare|||

5.Consolidated Cash FlowStatement
Unit:RMB
KonkaGroupCo.,Ltd. FirstQuarterReport2019
||||
|-|-|-|
|Item|Q12019|Q12018|
|1.Cashflowsfromoperatingactivities:|||
|Proceedsfromsaleofcommoditiesandrenderingofservices|11,629,972,953.14|5,754,785,966.74|
|Netincreaseincustomerdepositsandinterbankdeposits|||
|Netincreaseinborrowingsfromthecentralbank|||
|Netincreaseinloansfromotherfinancialinstitutions|||
|Premiumsreceivedonoriginalinsurancecontracts|||
|Netproceedsfromreinsurance|||
|Netincreaseindepositsandinvestmentsofpolicyholders|||
|Net increase in proceeds from disposal of financial assets at fairvaluethroughprofitorloss|||
|Interest,handlingchargesandcommissionsreceived|||
|Netincreaseininterbankloansobtained|||
|Netincreaseinproceedsfromrepurchasetransactions|||
|Netproceedsfromactingtradingofsecurities|||
|Taxrebates|307,323,363.61|168,573,547.32|
|Cashgeneratedfromotheroperatingactivities|1,487,656,643.30|172,592,473.35|
|Subtotalofcashgeneratedfromoperatingactivities|13,424,952,960.05|6,095,951,987.41|
|Paymentsforcommoditiesandservices|12,464,112,932.57|6,072,157,862.54|
|Netincreaseinloansandadvancestocustomers|||
|Net increase in depositsin thecentral bank and ininterbank loansgranted|||
|Paymentsforclaimsonoriginalinsurancecontracts|||
|Netincreaseinfinancialassetsheldfortradingpurposes|||
|Netincreaseininterbankloansgranted|||
|Interest,handlingchargesandcommissionspaid|||
|Policydividendspaid|||
|Cashpaidtoandforemployees|548,246,765.80|481,603,150.56|
|Taxespaid|159,596,824.94|201,309,910.91|
|Cashusedinotheroperatingactivities|793,736,581.46|360,246,580.12|
|Subtotalofcashusedinoperatingactivities|13,965,693,104.77|7,115,317,504.13|
|Netcashgeneratedfrom/usedinoperatingactivities|-540,740,144.72|-1,019,365,516.72|
|2.Cashflowsfrominvestingactivities:|||
|Proceedsfromdisinvestment|71,798,210.00|37,303,231.61|
|Returnoninvestment|18,560,027.29|27,461,877.60|

KonkaGroupCo.,Ltd. FirstQuarterReport2019
||||
|-|-|-|
|Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets|27,086.77|26,132.00|
|Net proceeds from the disposal of subsidiaries and other businessunits|||
|Cashgeneratedfromotherinvestingactivities|50,000,000.00|420,950,000.00|
|Subtotalofcashgeneratedfrominvestingactivities|140,385,324.06|485,741,241.21|
|Payments for the acquisition of fixed assets, intangible assets andotherlong-livedassets|198,262,328.78|87,522,934.00|
|Paymentsforinvestments|1,116,840,150.00|8,378,256.00|
|Netincreaseinpledgedloansgranted|||
|Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits|||
|Cashusedinotherinvestingactivities|33,420.00|623,480,000.00|
|Subtotalofcashusedininvestingactivities|1,315,135,898.78|719,381,190.00|
|Netcashgeneratedfrom/usedininvestingactivities|-1,174,750,574.72|-233,639,948.79|
|3.Cashflowsfromfinancingactivities:|||
|Capitalcontributionsreceived|69,775,272.10|26,400,000.00|
|Including: Capital contributions by non-controlling interests tosubsidiaries|69,775,272.10|26,400,000.00|
|Borrowingsobtained|6,036,407,744.97|2,430,850,602.39|
|Netproceedsfromtheissuanceofbonds|2,491,250,000.00||
|Cashgeneratedfromotherfinancingactivities|||
|Subtotalofcashgeneratedfromfinancingactivities|8,597,433,017.07|2,457,250,602.39|
|Repaymentsofborrowings|5,791,211,803.51|2,184,187,298.05|
|Paymentsforinterestanddividends|130,287,756.06|86,485,560.15|
|Including: Dividends paid by subsidiaries to non-controllinginterests||672,569.18|
|Cashusedinotherfinancingactivities|113,256,202.85||
|Subtotalofcashusedinfinancingactivities|6,034,755,762.42|2,270,672,858.20|
|Netcashgeneratedfrom/usedinfinancingactivities|2,562,677,254.65|186,577,744.19|
|4. Effect of foreign exchange rate changes on cash and cashequivalents|-28,585,274.94|-42,957,026.83|
|5.Netincreaseincashandcashequivalents|818,601,260.27|-1,109,384,748.15|
|Add:Cashandcashequivalents,beginningoftheperiod|3,434,149,481.72|3,097,899,703.76|
|6.Cashandcashequivalents,endoftheperiod|4,252,750,741.99|1,988,514,955.61|

6.Cash FlowStatementof theCompany asthe Parent
Unit:RMB
KonkaGroupCo.,Ltd. FirstQuarterReport2019
||||
|-|-|-|
|Item|Q12019|Q12018|
|1.Cashflowsfromoperatingactivities:|||
|Proceedsfromsaleofcommoditiesandrenderingofservices|5,741,645,965.28|4,460,261,836.82|
|Taxrebates|2,001,311.86|49,651,754.59|
|Cashgeneratedfromotheroperatingactivities|2,888,350,859.75|400,528,693.60|
|Subtotalofcashgeneratedfromoperatingactivities|8,631,998,136.89|4,910,442,285.01|
|Paymentsforcommoditiesandservices|4,822,152,505.81|4,046,918,162.79|
|Cashpaidtoandforemployees|228,776,897.37|308,420,198.90|
|Taxespaid|27,043,199.31|63,378,125.20|
|Cashusedinotheroperatingactivities|3,497,902,432.17|1,120,437,119.07|
|Subtotalofcashusedinoperatingactivities|8,575,875,034.66|5,539,153,605.96|
|Netcashgeneratedfrom/usedinoperatingactivities|56,123,102.23|-628,711,320.95|
|2.Cashflowsfrominvestingactivities:|||
|Proceedsfromdisinvestment|4,538,210.00||
|Returnoninvestment|20,974,260.08|33,036,245.41|
|Net proceeds from the disposal of fixed assets, intangible assetsandotherlong-livedassets|75,760.33|26,132.00|
|Net proceeds from the disposal of subsidiaries and other businessunits|||
|Cashgeneratedfromotherinvestingactivities|68,811,385.15|517,743,720.30|
|Subtotalofcashgeneratedfrominvestingactivities|94,399,615.56|550,806,097.71|
|Payments for the acquisition of fixed assets, intangible assets andotherlong-livedassets|37,545,366.80|39,045,066.97|
|Paymentsforinvestments|419,430,000.00|212,000,000.00|
|Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits|||
|Cashusedinotherinvestingactivities|2,341,938,500.00|692,763,165.04|
|Subtotalofcashusedininvestingactivities|2,798,913,866.80|943,808,232.01|
|Netcashgeneratedfrom/usedininvestingactivities|-2,704,514,251.24|-393,002,134.30|
|3.Cashflowsfromfinancingactivities:|||
|Capitalcontributionsreceived|||
|Borrowingsobtained|1,797,521,590.00|763,416,364.16|
|Netproceedsfromtheissuanceofbonds|2,491,250,000.00||
|Cashgeneratedfromotherfinancingactivities|||
|Subtotalofcashgeneratedfromfinancingactivities|4,288,771,590.00|763,416,364.16|
|Repaymentsofborrowings|1,517,544,630.00|667,515,069.15|

KonkaGroupCo.,Ltd. FirstQuarterReport2019
||||
|-|-|-|
|Paymentsforinterestanddividends|103,058,776.61|81,697,528.08|
|Cashusedinotherfinancingactivities|85,309.60||
|Subtotalofcashusedinfinancingactivities|1,620,688,716.21|749,212,597.23|
|Netcashgeneratedfrom/usedinfinancingactivities|2,668,082,873.79|14,203,766.93|
|4. Effect of foreign exchange rate changes on cash and cashequivalents|-11,843,842.05|-19,141,408.56|
|5.Netincreaseincashandcashequivalents|7,847,882.73|-1,026,651,096.88|
|Add:Cashandcashequivalents,beginningoftheperiod|1,497,794,555.85|1,743,269,944.67|
|6.Cashandcashequivalents,endoftheperiod|1,505,642,438.58|716,618,847.79|

 II Adjustments totheFinancialStatements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New StandardsGoverningFinancialInstruments,RevenueorLeases
√ Applicable□ Not applicable
Consolidated Balance Sheet
Unit: RMB
|||||
|-|-|-|-|
|Item|31December2018|1January2019|Adjusted|
|Currentassets:||||
|Monetarycapital|4,348,144,129.53|4,348,144,129.53||
|Tradingfinancialassets|N/A|5,464,984.92|5,464,984.92|
|Financial assets at fair value throughprofitorloss|5,464,984.92|N/A|-5,464,984.92|
|Notesandaccountsreceivable|7,787,765,540.57|7,787,765,540.57||
|Including:Notesreceivable|3,329,711,954.15|3,329,711,954.15||
|Accountsreceivable|4,458,053,586.42|4,458,053,586.42||
|Prepayments|1,036,979,167.56|1,036,979,167.56||
|Otherreceivables|410,804,180.50|410,804,180.50||
|Including:Interestreceivable|4,059,682.40|4,059,682.40||
|Dividendsreceivable|547,848.62|547,848.62||
|Inventories|5,487,605,227.05|5,487,605,227.05||
|Currentportionofnon-currentassets|22,318,208.13|22,318,208.13||
|Othercurrentassets|2,744,216,141.98|2,744,216,141.98||
|Totalcurrentassets|21,843,297,580.24|21,843,297,580.24||
|Non-currentassets:||||
|Available-for-salefinancialassets|633,664,881.33|N/A|-633,664,881.33|

KonkaGroupCo.,Ltd. FirstQuarterReport2019
|||||
|-|-|-|-|
|Long-termreceivables|390,793,038.05|390,793,038.05||
|Long-termequityinvestments|2,637,780,825.53|2,637,780,825.53||
|Investmentsinotherequityinstruments|N/A|633,664,881.33|633,664,881.33|
|Investmentproperty|210,824,355.72|210,824,355.72||
|Fixedassets|2,410,226,495.81|2,410,226,495.81||
|Constructioninprogress|2,176,871,530.80|2,176,871,530.80||
|Intangibleassets|737,776,686.34|737,776,686.34||
|Goodwill|855,691,423.75|855,691,423.75||
|Long-termprepaidexpense|111,223,426.77|111,223,426.77||
|Deferredincometaxassets|639,433,954.30|639,433,954.30||
|Othernon-currentassets|337,477,690.39|337,477,690.39||
|Totalnon-currentassets|11,141,764,308.79|11,141,764,308.79||
|Totalassets|32,985,061,889.03|32,985,061,889.03||
|Currentliabilities:||||
|Short-termborrowings|13,884,132,931.63|13,884,132,931.63||
|Tradingfinancialliabilities|N/A|2,459,603.25|2,459,603.25|
|Financialliabilitiesatfairvaluethroughprofitorloss|2,459,603.25|N/A|-2,459,603.25|
|Notesandaccountspayable|5,225,053,739.80|5,225,053,739.80||
|Advancesfromcustomers|723,227,529.20|723,227,529.20||
|Payrollpayable|376,506,567.71|376,506,567.71||
|Taxespayable|288,004,192.44|288,004,192.44||
|Otherpayables|2,024,657,277.74|2,024,657,277.74||
|Including:Interestpayable|27,230,631.41|27,230,631.41||
|Current portion of non-currentliabilities|151,792,404.13|151,792,404.13||
|Totalcurrentliabilities|22,675,834,245.90|22,675,834,245.90||
|Non-currentliabilities:||||
|Long-termborrowings|445,000,000.00|445,000,000.00||
|Long-termpayables|128,374,597.41|128,374,597.41||
|Long-termPayrollpayable|8,792,614.98|8,792,614.98||
|Provisions|21,772,898.37|21,772,898.37||
|Deferredincome|112,899,128.24|112,899,128.24||
|Deferredincometaxliabilities|141,020,093.34|141,020,093.34||

KonkaGroupCo.,Ltd. FirstQuarterReport2019
||||
|-|-|-|
|Totalnon-currentliabilities|857,859,332.34|857,859,332.34|
|Totalliabilities|23,533,693,578.24|23,533,693,578.24|
|Owners’ equity:|||
|Sharecapital|2,407,945,408.00|2,407,945,408.00|
|Capitalreserves|208,356,624.21|208,356,624.21|
|Othercomprehensiveincome|-10,538,219.08|-10,538,219.08|
|Surplusreserves|1,227,564,785.19|1,227,564,785.19|
|Retainedearnings|4,271,408,192.21|4,271,408,192.21|
|Total equity attributable to owners oftheCompanyastheparent|8,104,736,790.53|8,104,736,790.53|
|Non-controllinginterests|1,346,631,520.26|1,346,631,520.26|
|Totalowners’ equity|9,451,368,310.79|9,451,368,310.79|
|Totalliabilitiesandowners’ equity|32,985,061,889.03|32,985,061,889.03|

Notes for adjustment
Financial assets at fair valuethrough profit or loss,formerly recognized as “financial assets at fair value through profit orloss”,are now recognized as “trading financial assets” according to thenew accounting rules governing financial instrumentsand presented as “trading financial assets” according totheCK〔2018〕No. 15Document. This change has noimpact onequities orprofit/loss. Equity investments with theCompanyhaving significant influence ontheinvestees, formerly recognized as “available-for-salefinancial assets”,are nowrecognized as “financial assets at fair value through othercomprehensive income” according to thenewaccounting rules governing financial instruments andpresented as “investments in otherequity instruments” according totheCK〔2018〕No.15Document. And such equity investments are measured at cost. This changehas noimpact onequitiesor profit/loss.
Financial liabilities at fairvalue through profit orloss, formerly recognized as “financial liabilities at fairvalue through profit orloss”,are nowrecognized as “trading financial liabilities” according to thenew accounting rules governing financial instruments andpresented as “trading financial liabilities” according totheCK〔2018〕No. 15Document. This change has noimpact onequities or profit/loss.
Balance Sheet oftheCompany as theParent
Unit:RMB
|||||
|-|-|-|-|
|Item|31December2018|1January2019|Adjusted|
|Currentassets:||||
|Monetarycapital|2,124,335,536.69|2,124,335,536.69||
|Tradingfinancialassets|N/A|5,464,984.92|5,464,984.92|
|Financial assets at fair value throughprofitorloss|5,464,984.92|N/A|-5,464,984.92|
|Notesandaccountsreceivable|9,608,713,113.32|9,608,713,113.32||

KonkaGroupCo.,Ltd. FirstQuarterReport2019
|||||
|-|-|-|-|
|Including:Notesreceivable|2,181,466,683.90|2,181,466,683.90||
|Accountsreceivable|7,427,246,429.42|7,427,246,429.42||
|Prepayments|1,019,335,571.49|1,019,335,571.49||
|Otherreceivables|6,667,463,126.57|6,667,463,126.57||
|Including:Interestreceivable|5,769,663.24|5,769,663.24||
|Inventories|254,225,716.41|254,225,716.41||
|Othercurrentassets|77,249,216.99|77,249,216.99||
|Totalcurrentassets|19,756,787,266.39|19,756,787,266.39||
|Non-currentassets:||||
|Available-for-salefinancialassets|326,164,881.33|N/A|-326,164,881.33|
|Long-termequityinvestments|6,182,962,034.71|6,182,962,034.71||
|Investmentsinotherequityinstruments|N/A|326,164,881.33|326,164,881.33|
|Investmentproperty|210,824,355.72|210,824,355.72||
|Fixedassets|462,721,018.30|462,721,018.30||
|Constructioninprogress|157,356,696.30|157,356,696.30||
|Intangibleassets|83,593,959.11|83,593,959.11||
|Long-termprepaidexpense|80,388,949.97|80,388,949.97||
|Deferredincometaxassets|516,879,201.66|516,879,201.66||
|Othernon-currentassets|20,000,000.00|20,000,000.00||
|Totalnon-currentassets|8,040,891,097.10|8,040,891,097.10||
|Totalassets|27,797,678,363.49|27,797,678,363.49||
|Currentliabilities:||||
|Short-termborrowings|8,179,564,987.70|8,179,564,987.70||
|Tradingfinancialliabilities|N/A|2,459,603.25|2,459,603.25|
|Financial liabilitiesat fair valuethroughprofitorloss|2,459,603.25|N/A|-2,459,603.25|
|Notesandaccountspayable|9,990,213,911.08|9,990,213,911.08||
|Advancesfromcustomers|306,650,717.69|306,650,717.69||
|Payrollpayable|146,199,496.44|146,199,496.44||
|Taxespayable|10,913,871.30|10,913,871.30||
|Otherpayables|2,011,494,378.65|2,011,494,378.65||
|Including:Interestpayable|24,158,666.48|24,158,666.48||
|Current portion of non-currentliabilities|40,000,000.00|40,000,000.00||

KonkaGroupCo.,Ltd. FirstQuarterReport2019
||||
|-|-|-|
|Totalcurrentliabilities|20,687,496,966.11|20,687,496,966.11|
|Non-currentliabilities:|||
|Long-termborrowings|245,000,000.00|245,000,000.00|
|Provisions|206,591.51|206,591.51|
|Deferredincome|75,705,476.93|75,705,476.93|
|Deferredincometaxliabilities|751,345.42|751,345.42|
|Totalnon-currentliabilities|321,663,413.86|321,663,413.86|
|Totalliabilities|21,009,160,379.97|21,009,160,379.97|
|Owners’ equity:|||
|Sharecapital|2,407,945,408.00|2,407,945,408.00|
|Capitalreserves|114,018,066.79|114,018,066.79|
|Othercomprehensiveincome|-1,182,217.31|-1,182,217.31|
|Surplusreserves|1,227,564,785.19|1,227,564,785.19|
|Retainedearnings|3,040,171,940.85|3,040,171,940.85|
|Totalowners’ equity|6,788,517,983.52|6,788,517,983.52|
|Totalliabilitiesandowners’ equity|27,797,678,363.49|27,797,678,363.49|

KonkaGroupCo.,Ltd. FirstQuarterReport2019 Notes for adjustment
Financial assets at fair value through profit or loss, formerly recognized as “financial assets at fair value through profit or loss”,are now recognized as “trading financial assets” according to the new accounting rules governing financial instruments and presented as “ trading financial assets ” according totheCK〔2018〕No. 15Document. This change has noimpact onequities orprofit/loss. Equity investments with the Company having significant influence on the investees, formerly recognized as “available-for-sale financial assets”, are now recognized as “financial assets at fair value through other comprehensive income” according to the new accounting rules governing financial instruments and presented as “investments in other equity instruments” according to theCK〔2018〕No. 15 Document. And such equity investments are measured at cost. This change has noimpact onequitiesor profit/loss.
Financial liabilities at fair value through profit or loss, formerly recognized as “financial liabilities at fair value through profit or loss”, are now recognized as “trading financial liabilities” according to the new accounting rules governing financial instruments and presented as “trading financial liabilities” according totheCK〔2018〕No. 15Document. This change has noimpact on equities or profit/loss.
2. Retrospective Restatement of Previous Comparative Data due to the First Execution of any New StandardsGoverningFinancialInstrumentsorLeases
□ Applicable√ Not applicable
IIIIndependentAuditor’s Report
Indicate by tick mark whether the financial statements above have been audited by an independent auditor.
□Yes√ No
These financial statements have not beenaudited bysuch an auditor.
TheBoard ofDirectors Konka Group Co.,Ltd. 29April 2019