Konka Group Co., Ltd. Annual Report 2021
1
KONKAGROUPCO., LTD.
ANNUALREPORT 2021
2022-22
March 2022
Konka Group Co., Ltd. Annual Report 2021
2
Part I Important Notes, Table of Contents and Definitions
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 or material omissions therein.
Zhou Bin, the Company’s legal representative, Li Chunlei, the Company’s Chief Financial
Officer (CFO), and Guo Zhihua, the head of the Company’s financial department (equivalent
to financial manager) hereby guarantee that the Financial Statements carried in this Report
are factual, accurate and complete.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Any plans for the future or other forward-looking statements mentioned in this Report and its
summary shall NOT be considered as absolute promises of the Company to investors.
Therefore, investors are reminded to exercise caution when making investment decisions.
The Board has approved a final dividend plan as follows: based on the 2,407,945,408 shares, a
cash dividend of (tax inclusive) per 10 shares is to be distributed to the shareholders,
with no bonus issue from either profit or capital reserves.
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
shall prevail.
Konka Group Co., Ltd. Annual Report 2021
3
Table of Contents
Part I Important Notes, Table of Contents and Definitions........................................................... 2
Part II Corporate Information and Key Financial Information..................................................11
Part III Management Discussion and Analysis..............................................................................17
Part IV Corporate Governance.......................................................................................................49
Part V Environmental and Social Responsibility.......................................................................... 76
Part VI Significant Events............................................................................................................... 88
Part VII Share Changes and Shareholder Information..............................................................119
Part VIII Preferred Shares............................................................................................................126
Part IX Corporate Bonds...............................................................................................................127
Part X Financial Statements..........................................................................................................134
Konka Group Co., Ltd. Annual Report 2021
4
Documents Available for Reference
1. The financial statements with the signatures and seals of the Company’s legal representative,
Chief Financial Officer and head of the financial department;
2. The original copy of the Independent Auditor’s Report with the seal of the CPA firm and the
signatures & seals of the certified public accountants;
3. The originals of all the Company’s documents and announcements disclosed to the public in the
Reporting Period;
4. This Report and its summary with the signature of the Company’s legal representative and the
seal of the Company; and
5. Other relevant materials.
Konka Group Co., Ltd. Annual Report 2021
5
Definitions
Term Definition
The “Company”, the “Group”, “Konka Group” or
“we”
Konka Group Co., Ltd. and its consolidated subsidiaries, except where the
context otherwise requires
Electronics Technology Shenzhen Konka Electronics Technology Co., Ltd.
Anhui Zhilian Anhui Konka Zhilian E-Commerce Co., Ltd.
Haimen Konka Haimen Konka Smart Technology Co., Ltd.
Chengdu Konka Smart Chengdu Konka Smart Technology Co., Ltd.
Chengdu Konka Electronic Chengdu Konka Electronic Co., Ltd.
Nantong Hongdin Nantong Hongdin Smart Technology Co., Ltd.
Youzhihui Shenzhen Youzhihui Technology Co., Ltd.
Xiaojia Technology Xiaojia Technology Co., Ltd.
Liaoyang Kangshun Smart Liaoyang Kangshun Smart Technology Co., Ltd.
Liaoyang Kangshun Renewable Liaoyang Kangshun Renewable Resources Co., Ltd.
Nanjing Konka Nanjing Konka Electronics Co., Ltd.
Chuzhou Konka Chuzhou Konka Precision Intelligent Manufacturing Technology Co., Ltd.
Xi'an Huasheng Xi'an Huasheng Jiacheng Real Estate Co., Ltd.
XingDa HongYe GuangDong XingDa HongYe Electronic Co., Ltd.
Shanghai Xinfeng Shanghai Xinfeng Zhuoqun PCB Co., Ltd.
Konka Circuit Shenzhen Konka Circuit Co., Ltd.
Konka Flexible Electronic Suining Konka Flexible Electronic Technology Co., Ltd.
Konka Hongye Electronics Suining Konka Hongye Electronics Co., Ltd.
Boluo Precision Boluo Konka Precision Technology Co., Ltd.
Boluo Konka Boluo Konka PCB Co., Ltd.
Xiamen Dalong Xiamen Dalong Trading Co., Ltd.
Anhui Tongchuang Anhui Konka Tongchuang Electrical Appliances Co., Ltd.
Jiangsu Konka Smart Jiangsu Konka Smart Electrical Appliances Co., Ltd.
Anhui Electrical Appliance Anhui Konka Electrical Appliance Technology Co., Ltd.
Frestec Refrigeration Henan Frestec Refrigeration Appliance Co., Ltd.
Frestec Electrical Appliances Henan Frestec Electrical Appliances Co., Ltd.
Frestec Household Appliances Henan Frestec Household Appliances Co., Ltd.
Frestec Smart Home Henan Frestec Smart Home Technology Co., Ltd.
Konka Investment Shenzhen Konka Investment Holdings Co., Ltd.
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Yibin Konka Technology Park Yibin Konka Technology Park Operation Co., Ltd.
Konka Capital Shenzhen Konka Capital Equity Investment Management Co., Ltd.
Industrial Park Development Shenzhen Konka Industrial Park Development Co., Ltd.
Konka Suiyong Konka Suiyong Investment (Shenzhen) Co., Ltd.
Kangquan Enterprise Shenzhen Kangquan Enterprise Management Consulting Co., Ltd.
Konka Suyuan Shenzhen Konka Suyuan Investment Industrial Co., Ltd.
Shengxing Industrial Shenzhen Konka Shengxing Industrial Co., Ltd.
Zhitong Technology Shenzhen Konka Zhitong Technology Co., Ltd.
Konka Factoring Konka Factoring (Shenzhen) Co., Ltd.
Beijing Konka Electronic Beijing Konka Electronic Co., Ltd.
Konka Leasing Konka Financial Leasing (Tianjin) Co., Ltd.
Suining Konka Industrial Park Suining Konka Industrial Park Development Co., Ltd.
Suining Electronic Technological Innovation Suining Konka Electronic Technological Innovation Co., Ltd.
Shanghai Konka Shanghai Konka Industrial Co., Ltd.
Yantai Kangjin Yantai Kangjin Technology Development Co., Ltd.
Mobile Interconnection Shenzhen Konka Mobile Interconnection Technology Co., Ltd.
Sichuan Konka Sichuan Konka Smart Terminal Technology Co., Ltd
Yibin Smart Yibin Konka Smart Technology Co., Ltd.
Shenzhen KONSEMI Shenzhen KONSEMI Co., Ltd.
Chongqing Konka Chongqing Konka Technology Development Co., Ltd.
Hefei KONSEMI Hefei KONSEMI Storage Technology Co., Ltd.
Yihe Electronic Hefei Yihe Electronic Co., Ltd.
Shenzhen Kanghuijia Technology Shenzhen Kanghuijia Technology Co., Ltd.
Chongqing Huiying Technology Chongqing Konka Huiying Technology Co., Ltd.
Kowin Memory (Shenzhen) Kowin Memory Technology (Shenzhen) Co., Limited
Kowin Memory (Hong Kong) Kowin Memory Technology (Hong Kong) Co., Limited
Konka Xinyun Semiconductor Konka Xinyun Semiconductor Technology (Yancheng) Co., Ltd.
Industrial and Trade Technology Konka Industrial and Trade Technology (Shenzhen) Co., Ltd.
Shenzhen Nianhua Shenzhen Nianhua Enterprise Management Co., Ltd.
Konka Huazhong Konka Huazhong (Hunan) Technology Co., Ltd.
Wankaida Shenzhen Wankaida Science and Technology Co., Ltd.
Shenzhen Chuangzhi Electrical Appliances Shenzhen Konka Chuangzhi Electrical Appliances Co., Ltd.
Suining Jiarun Property Suining Jiarun Property Co., Ltd.
Konka Electrical Appliances Shenzhen Konka Electrical Appliances Co., Ltd.
E2info Shenzhen E2info Network Technology Co., Ltd.
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E2info (Hainan) E2info (Hainan) Network Technology Co., Ltd.
Anhui Konka Anhui Konka Electronic Co., Ltd.
Kangzhi Trade Anhui Kangzhi Trade Co., Ltd.
Telecommunication Technology Shenzhen Konka Telecommunications Technology Co., Ltd.
Konka Mobility Konka Mobility Co., Limited
Dongguan Kangjia Dongguan Kangjia New Materials Technology Co., Ltd..
Dongguan Konka Dongguan Konka Electronic Co., Ltd.
Suining Konka Smart Suining Konka Smart Technology Co., Ltd.
Chongqing Optoelectronic Technology Research
Institute
Chongqing Konka Optoelectronic Technology Research Institute Co., Ltd.
Yibin Kangrun Yibin Kangrun Environmental Technology Co., Ltd.
Yibin Kangrun Medical Yibin Kangrun Medical Waste Centralized Treatment Co., Ltd.
Yibin Kangrun Environmental Protection Yibin Kangrun Environmental Protection Power Generation Co., Ltd.
Ningbo Khr Electric Appliance Ningbo Khr Electric Appliance Co., Ltd.
Jiangxi Konka Jiangxi Konka New Material Technology Co., Ltd.
Jiangxi High Transparent Substrate (formerly
known as “Nano-Grystallized Glass”)
Jiangxi High Transparent Substrate Material Technology Co., Ltd. (formerly
known as “Jiangxi Golden Phoenix Nano-Grystallized Glass Co., Ltd.”)
Jiangsu Konka Special Material Jiangsu Konka Special Material Technology Co., Ltd.
Xinfeng Microcrystalline Jiangxi Xinfeng Microcrystalline Jade Co., Ltd.
Konka Huanjia Konka Huanjia Environmental Technology Co., Ltd.
Konka Huanjia (Henan) Konka Huanjia (Henan) Environmental Technology Co., Ltd.
Econ Technology Shandong Econ Technology Co., Ltd.
Econ Environmental Engineering Econ Environmental Engineering Co., Ltd.
Beijing Econ Beijing Econ Runfeng Technology Co., Ltd.
Binzhou Econ Zhongke Binzhou Econ Zhongke Environmental Technology Co., Ltd.
Dayi Kangrun Water Dayi Kangrun Water Co., Ltd.
Tingyuan Environmental Tingyuan Environmental Technology (Shanghai) Co., Ltd.
Shanghai Jiyi Shanghai Jiyi Environmental Technology Co., Ltd.
Kangrunhong Environmental Kangrunhong Environmental Technology (Yantai) Co., Ltd.
Donggang Kangrun Donggang Kangrun Environmental Management Co., Ltd.
Gaoping Kangrun Gaoping Kangrun Environmental Protection & Water Co., Ltd.
Xi’an Kangrun Xi’an Gaoling Kangrun Environmental Engineering Co., Ltd.
Changning Kangrun Changning Kangrun Water Co., Ltd.
Lushan Kangrun Environmental Lushan Kangrun Environmental Management Co., Ltd.
Tongchuan Kangrun Honghui Tongchuan Kangrun Honghui Environmental Management Co., Ltd.
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Rushan Econ Rushan Econ Water Environment Management Co., Ltd.
Mengcheng Kangrun Mengcheng Kangrun Anjian Water Co., Ltd.
Chongzhou Kangrun Chongzhou Kangrun Environment Co., Ltd.
Suining Pengxi Kangrun Suining Pengxi Kangrun Environmental Management Co., Ltd.
Funan Kangrun Water Funan Kangrun Water Co., Ltd.
Subei Kangrun Water Subei Mongol Autonomous County Kangrun Water Co., Ltd.
Linfen Kangrun Linfen Kangrun Jinze Water Supply Co., Ltd.
Wuhan Runyuan Wastewater Wuhan Runyuan Wastewater Treatment Co., Ltd.
Binzhou Weiyijie Binzhou Weiyijie Environmental Technology Co., Ltd.
Binzhou Beihai Jingmai Binzhou Beihai Jingmai Industrial Development Co., Ltd.
Chunzhiran Yantai Chunzhiran Environmental Technology Co., Ltd.
Lairun Holding Laizhou Lairun Holding Co., Ltd.
Binhai Wastewater Laizhou Binhai Wastewater Treatment Co., Ltd.
Lairun Environmental Protection Laizhou Lairun Environmental Protection Co., Ltd.
Lairun Wastewater Laizhou Lairun Wastewater Treatment Co., Ltd.
Weifang Sihai Kangrun Weifang Sihai Kangrun Investment Operation Co., Ltd.
Xixian Kangrun Xixian Kangrun Xijian Water Environment Development Co., Ltd.
Ankang Kangrun Ankang Kangrun Xinheng Water Environment Co., Ltd.
Bokang Renewable Bokang Renewable Resources (Yantai) Co., Ltd.
Kangruncheng Environmental Technology Kangruncheng Environmental Technology (Yantai) Co., Ltd.
Shaanxi Konka Intelligent Shaanxi Konka Intelligent Appliance Co., Ltd.
Pengrun Technology Shenzhen Konka Pengrun Technology & Industry Co., Ltd.
Jiaxin Technology Jiaxin Technology Co., Ltd.
Konka Ronghe Konka Ronghe Industrial Technology (Zhejiang) Co., Ltd.
Chongqing Kangxingrui Chongqing Kangxingrui Environmental Technology Co., Ltd.
Chongqing Kangxingrui Automobile Recycling Chongqing Kangxingrui Scraped Automobile Recycling Co., Ltd.
Chongqing Kanglei Optoelectronic Chongqing Kanglei Optoelectronic Technology Co., Ltd.
Henan Kangxin Property Henan Kangxin Property Co., Ltd.
Konka Unifortune Shenzhen Konka Unifortune Technology Co., Ltd.
Jiali International Jiali International (Hong Kong) Limited
Kangjiatong Sichuan Kangjiatong Technology Co., Ltd.
Kanghong (Yantai) Environmental Kanghong (Yantai) Environmental Technology Co., Ltd.
Jiangkang (Shanghai) Technology Jiangkang (Shanghai) Technology Co., Ltd.
Konka Intelligent Manufacturing Shenzhen Konka Intelligent Manufacturing Technology Co., Ltd.
Konka Group Co., Ltd. Annual Report 2021
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Yantai Laikang Yantai Laikang Industrial Development Co., Ltd.
Konka Material Hainan Konka Material Technology Co., Ltd.
Konka Ventures Konka Ventures Development (Shenzhen) Co., Ltd.
Yibin Konka Incubator Yibin Konka Incubator Management Co., Ltd.
Yantai Konka Yantai Konka Healthcare Enterprise Service Co., Ltd.
Chengdu Anren Chengdu Anren Konka Cultural and Creative Incubator Management Co., Ltd.
Konka Enterprise Service Guiyang Konka Enterprise Service Co., Ltd.
Chuanghui Smart Nanjing Chuanghui Smart Technology Co., Ltd.
Konka Eco-Development Shenzhen Konka Eco-Development Investment Co., Ltd.
Shenzhen Kangxin Property Shenzhen Kangxin Property Co., Ltd.
Henan Kanghan Property Henan Kanghan Property Co., Ltd.
Konka Europe Konka (Europe) Co., Ltd.
Hong Kong Konka Hong Kong Konka Limited
Kangxin Semiconductor Kangxin Semiconductor (Yantai) Co., Ltd.
Hongdin Trading Hongdin International Trading Limited
Konka North America Konka North America LLC
Kanghao Technology Kanghao Technology Co., Ltd.
Hongdin Invest Hongdin Invest Development Limited
Chain Kingdom Memory Technologies Chain Kingdom Memory Technologies Co., Limited
Chain Kingdom Memory Technologies
(Shenzhen)
Chain Kingdom Memory Technologies (Shenzhen) Co., Limited
Hefei Chain Kingdom Memory Technologies Hefei Chain Kingdom Memory Technologies Co., Limited
KK Smartech KK Smartech Limited
Hongjet Hongjet (Hong Kong) Company Limited
Yantai Kangyun Yantai Kangyun Industrial Development Co., Ltd.
Yantai Kangyun Property Yantai Kangyun Property Development Co., Ltd.
Xi'an Feihe Xi'an Feihe Real Estate Development Co., Ltd.
Chongqing Xinyuan Semiconductor Chongqing Xinyuan Semiconductor Co., Ltd.
Jiangxi Konka Industrial Park Jiangxi Konka Industrial Park Development Co. Ltd.
Ruichang Kangrui Real Estate Ruichang Kangrui Real Estate Co., Ltd.
Industrial development in Wuhan Konka Industrial Development (Wuhan) Co., Ltd.
Kangxiaojia Digital Shenzhen Kangxiaojia Digital Information Technology Co., Ltd.
Kanghong Dongsheng Shenzhen Kanghong Dongsheng Investment Partnership (Limited Partnership)
Yijiakang Smart Terminal Shenzhen Yijiakang Smart Terminal Technology Co., Ltd.
Chongqing E2info E2info (Chongqing) Network Technology Co., Ltd.
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Lanrun Environmental Protection Lanrun Environment Protection Technology (Yantai) Co., Ltd.
Guizhou Kangkai Material Technology Guizhou Kangkai Material Technology Co., Ltd.
Guizhou Konka New Material Technology Guizhou Konka New Material Technology Co., Ltd.
Guizhou Kanggui Energy Guizhou Kanggui Energy Co., Ltd.
Guangdong Xinwei Guangdong Xinwei Semiconductor Co., Ltd.
Kangxinrun Renewable Resources Chongqing Kangxingrui Renewable Resources Co., Ltd.
Guizhou Kanggui Material Technology Guizhou Kanggui Material Technology Co., Ltd.
Sichun Chengrui Sichuan Chengrui Real Estate Co., Ltd.
Chongqing Jiarun Chongqing Jiarun Real Estate Co., Ltd.
Nantong Kanghai Nantong Kanghai Technology Industry Development Co., Ltd.
Chongqing Kangyiyun Chongqing Kangyiyun Business Operation Management Co., Ltd.
CSRC The China Securities Regulatory Commission
SZSE The Shenzhen Stock Exchange
CSRC Shenzhen The Shenzhen Bureau of the China Securities Regulatory Commission
RMB, RMB’0,000, RMB’00,000,000
Expressed in the Chinese currency of RMB, expressed in tens of thousands of
RMB, expressed in hundreds of millions of RMB
Konka Group Co., Ltd. Annual Report 2021
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Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name Konka Group-A, Konka Group-B Stock code 000016, 200016
Changed stock name (if any) N/A
Stock exchange for stock listing Shenzhen Stock Exchange
Company name in Chinese 康佳集团股份有限公司
Abbr. 康佳集团
Company name in English (if any) KONKAGROUP CO.,LTD
Abbr. (if any) KONKAGROUP
Legal representative Zhou Bin
Registered address
15-24/F, Konka R&D Center, 28 Keji South Twelfth Road, Science and Technology Park,
Yuehai Street, Nanshan District, Shenzhen, Guangdong Province, China
Zip code 518057
Past changes of registered address
On 1 July 2015, due to the relocation of the Company Headquarters, the registered
address has changed from OCT, Nanshan District, Shenzhen, Guangdong Province, China
to 15-24/F, Konka R&D Center, 28 Keji South Twelfth Road, Science and Technology
Park, Yuehai Street, Nanshan District, Shenzhen, Guangdong Province, China.
Office address
15-24/F, Konka R&D Center, 28 Keji South Twelfth Road, Science and Technology Park,
Yuehai Street, Nanshan District, Shenzhen, Guangdong Province, China
Zip code 518057
Company website
Email address szkonka@
II Contact Information
Board Secretary Securities Representative
Name Wu Yongjun Miao Leiqiang
Address
Board Secretariat, 24/F, Konka R&D Center, 28
Keji South Twelfth Road, Science and Technology
Park, Yuehai Street, Nanshan District, Shenzhen,
Guangdong Province, China
Board Secretariat, 24/F, Konka R&D Center, 28
Keji South Twelfth Road, Science and Technology
Park, Yuehai Street, Nanshan District, Shenzhen,
Guangdong Province, China
Tel. 0755-26609138 0755-26609138
Fax 0755-26601139 0755-26601139
Email address szkonka@ szkonka@
III Media for Information Disclosure and Place where this Report Is Lodged
Stock exchange website where this Securities Times, etc.
Konka Group Co., Ltd. Annual Report 2021
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Report is disclosed
Media and website where this Report is
disclosed
Place where this Report is lodged
Board Secretariat, 24/F, Konka R&D Center, 28 Keji South Twelfth Road, Science
and Technology Park, Yuehai Street, Nanshan District, Shenzhen, Guangdong
Province, China
IV Change to Company Registered Information
Unified social credit code 914403006188155783
Change to principal activity of the Company
since going public (if any)
No change
Every change of controlling shareholder since
incorporation (if any)
No change
V Other Information
The independent audit firm hired by the Company:
Name Shinewing Certified Public Accountants LLP
Office address
9/F, Block A, Fuhua Mansion, Chaoyangmen North Street, Dongcheng District,
Beijing, China
Accountants writing signatures Tang Qimei and Liu Jianhua
The independent sponsor hired by the Company to exercise constant supervision over the Company
in the Reporting Period:
□ Applicable √ Not applicable
The independent financial advisor hired by the Company to exercise constant supervision over the
Company in the Reporting Period:
□ Applicable √ Not applicable
VI Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
2021 2020
2021-over-2
020 change
(%)
2019
Operating revenue (RMB) 49,106,513, 50,351,836, % 55,119,125,
Net profit attributable to the listed
company’s shareholders (RMB)
905,352, 477,633, % 212,034,
Konka Group Co., Ltd. Annual Report 2021
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Net profit attributable to the listed
company’s shareholders before
exceptional gains and losses (RMB)
-3,250,798, -2,367,590, % -1,875,722,
Net cash generated from/used in
operating activities (RMB)
808,756, 178,616, % -1,543,947,
Basic earnings per share
(RMB/share)
%
Diluted earnings per share
(RMB/share)
%
Weighted average return on equity
(%)
% % % %
31 December 2021 31 December 2020
Change of
31
December
2021 over
31
December
2020 (%)
31 December 2019
Total assets (RMB) 39,874,520, 49,876,267, % 42,586,955,
Equity attributable to the listed
company’s shareholders (RMB)
9,095,278, 8,428,640, % 8,068,505,
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s
shareholders before and after exceptional gains and losses was negative for the last three accounting
years, and the latest independent auditor’s report indicated that there was uncertainty about the
Company’s ability to continue as a going concern.
□ Yes √ No
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s
shareholders before and after exceptional gains and losses was negative.
√ Yes □ No
Item 2021 2020 Note
Operating revenue (RMB) 49,106,513, 50,351,836,
Deductions from operating
revenue (RMB)
579,266, 445,172, Scrap sales revenue, utilities
revenue, lease revenue,
material sales revenue and
other revenue irrelevant to the
principal operations
Operating revenue net of 48,527,247, 49,906,663,
Konka Group Co., Ltd. Annual Report 2021
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deductions (RMB)
VII Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
1. Net Profit and Equity under CAS and IFRS
□Applicable √ Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□Applicable √ Not applicable
No difference for the Reporting Period.
VIII Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 9,822,169, 11,987,992, 9,816,584, 17,479,767,
Net profit attributable to the
listed company’s shareholders
72,822, 12,627, -211,828, 1,031,731,
Net profit attributable to the
listed company’s shareholders
before exceptional gains and
losses
-389,266, -320,858, -343,893, -2,196,780,
Net cash generated from/used in
operating activities
-529,240, -755,520, -157,473, 2,250,990,
Indicate by tick mark whether any of the quarterly financial data in the table above or their
summations differs materially from what have been disclosed in the Company’s quarterly or interim
reports.
□ Yes √ No
IX Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item 2021 2020 2019 Note
Gain or loss on disposal of non-current 4,047,094, 2,431,648, 1,202,401,
Konka Group Co., Ltd. Annual Report 2021
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assets (inclusive of impairment allowance
write-offs)
Government subsidies charged to current
profit or loss (exclusive of government
subsidies consistently given in the
Company’s ordinary course of business at
fixed quotas or amounts as per governmental
policies or standards)
1,352,377, 908,546, 1,204,519,
Gain or loss on assets entrusted to other
entities for investment or management
18,476, 71,541,
Gain or loss on debt restructuring 19, 1,127, 14,515,
Gain or loss on fair-value changes in
held-for-trading financial assets and
liabilities & income from disposal of
held-for-trading financial assets and
liabilities and available-for-sale financial
assets (exclusive of the effective portion of
hedges that arise in the Company’s ordinary
course of business)
67,789, 96,316, 49,472,
Gain or loss on loan entrustments 80,625, 64,616, 1,992,
Non-operating income and expense other
than the above
48,615, 54,271, 121,189,
Other gains and losses that meet the
definition of exceptional gain/loss
-1,907, 1,081, 145,586,
Less: Income tax effects 1,190,629, 544,211, 545,067,
Non-controlling interests effects (net of tax) 247,833, 186,647, 178,394,
Total 4,156,151, 2,845,224, 2,087,756, --
Particulars about other gains and losses that meet the definition of exceptional gain/loss:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their
Securities to the Public—Exceptional Gain/Loss Items:
√ Applicable □ Not applicable
Item
Amount involved
(RMB)
Reason
Tax 12,585, Government subsidies given in the Company’s ordinary course of business at fixed
Konka Group Co., Ltd. Annual Report 2021
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rebates on
software
quotas or amounts as per government’s uniform standards
Konka Group Co., Ltd. Annual Report 2021
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Part III Management Discussion and Analysis
I Industry Overview for the Reporting Period
At present, the core businesses of the Company include consumer electronics, industry trade,
semiconductors and environmental protection. Among them, for the industry trade business, the
Company carries out the procurement, processing and distribution of related materials around the
upstream and downstream of the consumer electronics business, thus it can be categorized to the
consumer electronics industry or semiconductor business. Therefore, the industries in which the
Company operates during the Reporting Period are consumer electronics industry, semiconductor
industry and environmental protection industry. The relevant information is as follows:
(I) Consumer electronics industry
In the color TV industry, with the gradual fading of demographic dividends and real estate
dividends, since 2016, the competition in China's color TV industry has shifted from the
incremental market to the stock market. In 2021, affected by factors such as increasingly fierce
market competition, sharp fluctuations in raw material prices, and sluggish domestic consumption,
the gross profit level of the color TV industry continued to be diluted. According to statistics from
All View Cloud (AVC for short), the retail sales volume in China's color TV market in 2021 was
million units, declining by % YoY, and the retail sales value was billion,
increasing by % YoY. In the future, as technologies such as Internet of Things (IoT), big data,
cloud computing, artificial intelligence, etc. promote the upgrade of the intelligentialization of
various electronic products, as well as the iterative update of future display technologies such as
Micro LED, the scale of the color TV industry is expected to grow.
On the side of the white goods industry, at present, the inventory of white goods in urban
households in China is basically saturated. Traditional white goods such as air conditioners,
refrigerators, washing machines, freezers, etc. have gradually started transforming from low-end
products to mid-to-high-end products. The white goods industry showed distinct trend of
consumption upgrade. In terms of the air-conditioning industry, statistics from AVC showed that the
retail sales volume of China's air-conditioning market was million units in 2021, decreasing
by % YoY, and the retail sales value was billion, decreasing by % YoY. As the
need for replacement at the consumer side recovers, the air-conditioning industry is expected to
maintain a steady growth trend in the future. In the refrigerator industry, statistics from AVC
showed that the retail sales volume in China's refrigerator market in 2021 was million units,
decreasing by % YoY, and the retail sales value was billion, increasing by % YoY.
As people are paying more attention to health, food preservation and promoting the trend of
upgrading their quality of life, the future refrigerator market will be mainly characterized by steady
Konka Group Co., Ltd. Annual Report 2021
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development and product upgrades. In respect of the washing machine industry, statistics from AVC
showed that the retail sales volume in China's washing machine market in 2021 was million
units, increasing by % YoY, and the retail sales value was billion, increasing by %
YoY. Offline channels of the washing machine market, which was greatly affected by the pandemic,
have been recovering gradually, and the overall market uncertainty is decreasing.
(II) Semiconductor industry
The semiconductor industry is a strategic, fundamental and leading industry that supports economic
and social development and safeguards national security. Driven by the development of 5G,
artificial intelligence, the IoT, and intelligentialization, the semiconductor industry is expected to
usher in a new wave of growth cycles. Among them, semiconductor storage is the largest
subdivision in the semiconductor industry in recent years. At present, South Korean companies
represented by Samsung and Hynix are in the leading position in the field of semiconductor storage.
China has also accelerated in boosting the production capacity of semiconductor storage in recent
years. It is expected that the self-sufficiency rate will continue to increase.
Micro LED is the prevailing trend and development direction of future display technology. The
industrial chain is divided into four main links: the upstream chip manufacturing, mass transfer, the
midstream panel manufacturing, and the downstream complete machine application. The Micro
LED has wide industrial application and a broad market.
(III) Environmental protection industry
With the introduction of a series of favorable policies to encourage the recycling and utilization of
renewable resources and the continuous strengthening of environmental protection inspections, the
total amount and the total value of recycled resources in China have shown rapid growth. It is
expected that the industry will continue to develop to a good prospect in the future, and the
development scale of the renewable resource recycling industry will continue to grow steadily.
II Principal Activity of the Company in the Reporting Period
(I) The Consumer Electronic Division
This division primarily comprises the multimedia sub-division and the white goods sub-division,
with details as follows:
1. The Multimedia Sub-Division
The company's multimedia business faces the global market, mainly including domestic color TV
business and export color TV business.
The domestic sales of the Company’s colour TVs are realized mainly through B2B
(Business-to-Business) and B2C (Business-to-Consumer), with its branch companies, business
departments and after-sales maintenance points operating across the country. And the Company
profits from the margins between the costs and the selling prices of its colour TVs.
Konka Group Co., Ltd. Annual Report 2021
19
As for selling its colour TVs abroad, the Company mainly relies on B2B. Its colour TVs are sold to
Asia Pacific, Middle East, Central & South America, East Europe, etc. And operating profit source
is also the differences between the costs and the selling prices of its colour TVs.
2. The White Goods Sub-Division
The white goods produced by the Company mainly include refrigerators, washing machines, air
conditioners, freezers, etc., which are sold through B2B and B2C mainly to the domestic market.
And the Company profits from the margins between the costs and the selling prices of its white
goods. The Company strengthened the foundation of our white goods brands through the acquisition
of the Frestec brand. Meanwhile, the establishment of the Ningbo A/C production base as a joint
venture has helped the Company build its own A/C manufacturing capability. The weakness in the
front-loading washing machine technology has been overcome by the acquisition of Beko
(Front-loading Washing Machine) China Factory. In addition, the Company went on a new path of
exploring the dishwasher world by setting up Xi’an Smart Appliances Park. The Company also
optimized the internal R&D, production, procurement, sales, and services processes, integrated the
external channel resources to enable channel sharing between the upstream procurement processes
and downstream sales processes, and improved the product sales structure and competitiveness of
the white goods business.
(II) The Industry Trade Business
The company's industry and trade business mainly focuses on the procurement, processing and
distribution of IC chip storage, LCD and other materials involved in the company's traditional main
business. The operating profit comes from the processing fee and the price difference between
upstream procurement and downstream sales.
The industry trade business can help the Company establish good relationships with its upstream su
ppliers and downstream customers, and keep it informed of prices of the materials used in its produ
ction for better cost control over its existing products. Additionally, it is able to facilitate the
development of the semiconductor business by helping accumulate customer resources for the
semiconductor and chip business, provide sales channels, and achieve accurate matching of market
demand, with a shortened product development period and a lower risk of mismatching of R&D and
market demand.
(III) The Environmental Protection Division
Currently, this business focuses on recycling of renewable resources and the new material of glass
ceramic. Renewable resources are collected, sorted, processed, distributed and sold.
(IV) The Semi-Conductor Division
Currently, the Company is engaged in storage, optoelectronics, etc. with respect to the
semi-conductor business. In storage, the Company primarily designs and markets master storage
chips, and engage in packaging and testing of storage products. In optoelectronics, the Company
Konka Group Co., Ltd. Annual Report 2021
20
primarily develops Micro LED-related products.
III Core Competitiveness Analysis
The Company’s core competitiveness lies in its R&D ability, brand, marketing network and human
resources. It has developed an R&D system of “Konka Research Institute-secondary Group/division
research centers-technology application centers”, established artificial intelligence internet of things
comprehensive laboratory and 5G Ultra HD laboratory with major universities or scientific research
institutions, established academician workstation, and built a technology research alliance matching
the industrial layout, with nearly 100 core technologies and about 1,500 R&D talents. The
Company has introduced around 100 experts on two projects of micro LED and memory master
chip. In terms of brand, the Company continues to promote brand strategy construction, system
construction, image construction and cultural construction, focuses on improving the scientific and
international image of the enterprise, strengthens the brand status, has a certain brand awareness and
reputation in the consumer group, and has good brand credit in banks and other financing channels.
In terms of marketing channels, the Company innovates channel reform, cooperates online and
offline for win-win results, and strives for development at home and abroad. Regarding offline
channels, the Company has more than 40 branches, more than 200 offices, more than 3,000
after-sales service stores across China, and the marketing and service network is all over the country;
as for online channels, the Company has settled in Tmall, JD, Suning, VIPshop and other
mainstream e-commerce platforms to innovate and develop live e-commerce business, and seek a
new growth pole for business development; overseas channel, the company The Company's
business covers Latin America, Europe, Asia Pacific and other countries and regions, with a sound
marketing network. In terms of human resources, the Company boasts a leadership team of many
years of management and industry experience, as well as a high quality execution team.
IV Core Business Analysis
1. Overview
In 2021, the Company adhered to the development strategy of “Technology + Business + Industrial
Parks”, closely centered on the mainline of “Semiconductor Technology+ New Consumer
Electronics + New Energy”, continuously accelerated the transformation and upgrading of
traditional business and the layout of strategic emerging businesses, and steadily promoted the
Company's transformation from "Konka Electronic" to "Konka Technology".
For 2021, the Company recorded operating revenue of billion. Net profit attributable to
the Company as the parent stood at RMB905 million, representing a year-on-year rise of %.
What the Company has accomplished in 2021 is summarized as follows:
Konka Group Co., Ltd. Annual Report 2021
21
(1) Maintained strategic strength and reshaped the business structure
In 2021, the Company firmly implemented the development strategy of “Technology + Business +
Industrial Parks” and closely centered on the three leading businesses of “Semiconductor
Technology+ New Consumer Electronics + New Energy” and the two supporting businesses of
"high-tech parks + investment", pointing out the direction for the Company to achieve leading
technology, industrial expansion and leapfrog development during the 14th Five-Year Plan.
(2) Made breakthrough in investment business
In 2021, Chutian Dragon Co., Ltd. and Wuhan Tianyuan Environmental Protection Co., Ltd., in
which the Company has a shareholding, were successfully listed on the Shenzhen Stock Exchange.
Also, the Company completed the strategic investor introduction of yikang Technology Co., Ltd..
and Shenzhen E2info Network Technology Co., Ltd., laying the foundation for its subsequent
capitalization operation. In addition, the Company, together with its partners, has initiated the
establishment of a number of industrial funds, in a bid to establish a synergistic enabling industrial
fund system for the Company's industrial implementation and achieve better investment returns.
(3) Steadily improved operations in consumer electronics sub-division
In 2021, the Company intensified efforts to strengthen technological innovation and intelligent
manufacturing capabilities of multimedia products, actively controlled fees to reduce costs and
increase efficiency, lengthened the industrial chain, and expanded product groups. In terms of white
goods sub-division, the Company introduced the Konka Kitchen Appliance Project in Shaanxi,
forming a new industrial pattern of "Konka + Frestec" dual-brand operation and "refrigerators +
washing machines + freezers + air conditioners + kitchen appliance" full-category layout.
(4) The technology park business grew steadily
In 2021, the Company, through diversified business forms such as industrial parks, headquarters
economy, and K-Care Towns, pooled partners upstream and downstream of the industrial chain with
an open and cooperative attitude, strengthened coordination with internal and external units, and
established a park project investment expansion mode, development and construction system and
investment promotion operation path with Konka characteristics. Amid macro-control, the
Company actively responded to the challenges, overcame various difficulties, and developed and
launched projects such as Changsha Central China Headquarters Project, Xi'an Konka Smart Home
Appliances Headquarters Project, Xinfeixi Land Plot Upgrading Project, Yantai Guxian Project, and
Chongqing Bishan Project, so as to further promote the sustainable development of the technology
park sub-division.
(5) Realized technical breakthroughs in semiconductor sub-division
In 2021, the Company has continuously increased investment in research and development of the
semiconductor sub-division, made breakthroughs in chip miniaturization, mass transfer and other
technology links, independently designed and produced 15 * 30 micron level MicroLED display
Konka Group Co., Ltd. Annual Report 2021
22
chips, and developed "hybrid mass transfer technology" with a transfer yield reaching %,
providing a solid foundation for further expansion of the wearable display, vehicle display,
immersive display and other application markets for industry entry and rapid development. In 2021,
Yancheng Semiconductor Assembly & Test Base was successfully completed and put into
production.
(6) Transformed environmental protection sub-division into new energy field
In 2021, the Company actively transformed its environmental protection sub-division into the
photovoltaic field, and extended to silicon materials, silicon wafers and related photovoltaic
modules upstream of the photovoltaic glass industry chain relying on the photovoltaic glass
production line of Jiangxi Konka New Material Technology Co., Ltd., to explore new business.
(7) Optimized PCB business structure and achieved significant improvement in operating condition
In 2021, the Company adopted a range of operating measures such as cost reduction and fee control,
revenue generation and profit increase in PCB sub-division. As a result, the product structure was
greatly optimized, the sales of multi-layer circuit boards accounted for over 40%, and the operating
condition improved markedly.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
2021 2020
Change (%)
Operating revenue
As % of total
operating revenue (%)
Operating revenue
As % of total
operating revenue (%)
Total 49,106,513, 100% 50,351,836, 100% %
By operating division
Electronics 13,873,074, % 14,279,587, % %
Industry trade 29,682,677, % 30,483,602, % %
Environmental
business
4,354,614, % 4,823,779, % %
Semiconductor 321,958, % 282,969, % %
Other 874,188, % 481,897, % %
By product category
Color TVs 7,300,340, % 7,519,625, % %
White goods 3,699,285, % 3,842,051, % %
Industry trade 29,682,677, % 30,483,602, % %
Environmental 4,354,614, % 4,823,779, % %
Konka Group Co., Ltd. Annual Report 2021
23
business
Semiconductor 321,958, % 282,969, % %
Other 3,747,636, % 3,399,808, % %
By operating segment
Domestic 22,033,965, % 19,911,879, % %
Overseas 27,072,548, % 30,439,957, % %
By marketing model
Direct sales 8,947,974, % 8,142,993, % %
Distribution 40,158,539, % 42,208,842, % %
(2) Operating Division, Product Category, Operating Segment or Marketing Model
Contributing over 10% of Operating Revenue or Operating Profit
√ Applicable □ Not applicable
Unit: RMB
Operating revenue Cost of sales
Gross profit
margin
YoY change in
operating revenue
(%)
YoY change in
cost of sales (%)
YoY change in
gross profit
margin (%)
By operating division
Electronics 13,873,074, 12,838,911, % % % %
Industry
trade
29,682,677, 29,514,534, % % % %
Environment
al business
4,354,614, 4,030,685, % % % %
By product category
Color TVs 7,300,340, 6,922,606, % % % %
White goods 3,699,285, 3,395,382, % % % %
Environment
al business
4,354,614, 4,030,685, % % % %
Industry
trade
29,682,677, 29,514,534, % % % %
By operating segment
Domestic 22,033,965, 20,644,926, % % % %
Overseas 27,072,548, 26,756,958, % % % %
By marketing model
Direct sales 8,947,974, 8,128,674, % % % %
Konka Group Co., Ltd. Annual Report 2021
24
Core business data of the prior year restated according to the changed statistical caliber for the
Reporting Period:
□ Applicable √ Not applicable
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
√ Yes □ No
Operating division Item Unit 2021 2020 Change (%)
Electronics
Unit sales 0,000 units 1,247 1,269 %
Output 0,000 units 1,184 1,244 %
Inventory 0,000 units 79 89 %
Any over 30% YoYmovements in the data above and why:
□ Applicable √ Not applicable
(4) Execution Progress of Major Signed Sales and Purchase Contracts in the Reporting Period
□Applicable √ Not applicable
(5) Breakdown of Cost of Sales
By product category
Unit: RMB
Product
category
Item
2021 2020
Change (%)
Cost of sales
As % of total cost of
sales (%)
Cost of sales
As % of total cost of
sales (%)
Color TVs Color TVs 6,922,606, % 6,925,658, % %
White goods White goods 3,395,382, % 3,317,107, % %
Industry trade Industry trade 29,514,534, % 30,183,532, % %
Environmental
business
Environmental
business
4,030,685, %
4,097,138, %
%
Semiconductor Semiconductor 306,296, % 275,286, % %
Other Other 3,232,379, % 2,796,339, % %
Note:
Cost of sales changed accordingly with operating revenue.
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
√ Yes □ No
Name of subsidiary
Registered capital
(RMB)
The Company’s
interest (%)
Date of
change
Reason for change
Chongqing Kanglei Optoelectronic
Technology Co., Ltd.
50,000, % 2021-4-7
De-registered
Henan Kangxin Real Estate Co., Ltd. 50,000, % 2021-5-18 De-registered
Distribution 40,158,539, 39,273,210, % % % %
Konka Group Co., Ltd. Annual Report 2021
25
Shenzhen Kangquan Enterprise Management
Consulting Co., Ltd.
10,000, % 2021-10-25
De-registered
Shenzhen Konka Suyuan Investment Industrial
Limited Company
10,000, % 2021-10-27
De-registered
Shenzhen Konka Industrial Park Development
Co., Ltd.
100,000, % 2021-10-28
De-registered
Xiamen Dalong Trade Co., Ltd. 2,600, % 2021-11-10 De-registered
Nanjing Chuanghui Smart Technology Co.,
Ltd.
1,000, % 2021-11-18
De-registered
Hefei Chain Kingdom Memory Technologies
Co., Limited.
5,000, % 2021-11-19
De-registered
Kangxin Semiconductor (Yantai) Co., Ltd. 70,000, % 2021-8-4 De-registered
Konka Kowin Memory Technology (Hong
Kong) Co., Limited.
10,000, (HKD) % 2021-2-2
Newly incorporated
Kanka Industrial and Trade Technology. 50,000, % 2021-2-7 Newly incorporated
Shaanxi Konka Intelligent Appliance Co., Ltd. 120,000, % 2021-3-5 Newly incorporated
Kangruncheng Environmental Technology
(Yantai) Co., Ltd.
10,000, % 2021-3-8
Newly incorporated
Yibin Kangrun Medical Waste Centralized
Treatment Co., Ltd.
50,000, % 2021-3-26
Newly incorporated
Suining Konka Flexible Electronic Technology
Co., Ltd.
100,000, % 2021-3-31
Newly incorporated
Yibin Kangrun Environmental Protection
Power Generation Co., Ltd.
76,000, % 2021-4-21
Newly incorporated
Nantong Hongdin Smart Technology Co., Ltd. 30,000, % 2021-4-22 Newly incorporated
Suining Konka Hongye Electronics Co., Ltd. 100,000, % 2021-5-7 Newly incorporated
Konka Huazhong (Hunan) Technology Co.,
Ltd.
30,000, % 2021-6-9
Newly incorporated
Kangxin Semiconductor (Yantai) Co., Ltd. 70,000, % 2021-6-11 Newly incorporated
Chuzhou Konka Precision Intelligent
Manufacturing Technology Co., Ltd.
100,000, % 2021-6-28
Newly incorporated
Chongqing Xinyuan Semiconductor Co., Ltd. 50,000, % 2021-9-8 Newly incorporated
Jiangxi Konka Industrial Park Development
Co. Ltd.
100,000, % 2021-9-14
Newly incorporated
Ruichang Kangrui Real Estate Co., Ltd. 10,000, % 2021-9-14 Newly incorporated
Konka Industrial Development (Wuhan) Co., 10,000, % 2021-10-15 Newly incorporated
Konka Group Co., Ltd. Annual Report 2021
26
Ltd.
Guizhou Konka New Material Technology
Co., Ltd.
100,000, % 2021-10-19
Newly incorporated
Guizhou Kanggui Material Technology Co.,
Ltd.
100,000, % 2021-10-25
Newly incorporated
Chongqing Jiarun Real Estate Co., Ltd. 20,000, % 2021-12-21 Newly incorporated
Nantong Kanghai Technology Industry
Development Co., Ltd.
50,000, % 2021-12-21
Newly incorporated
Guangdong Xinwei Semiconductor Co., Ltd. 20,000, % 2021-12-29 Newly incorporated
Chongqing Kangyiyun Business Operation
Management Co., Ltd.
10,000, % 2021-12-29
Newly incorporated
Shenzhen Yijiakang Smart Terminal
Technology Co., Ltd.
20,000, % 2021-12-30
Newly incorporated
Shenzhen Kangxiaojia Digital Information
Technology Co., Ltd.
20,000, % 2021-12-30
Newly incorporated
Guizhou Kangkai Material Technology Co.,
Ltd.
10,000, % 2021-12-30
Newly incorporated
Chongqing Kangxingrui Renewable Resources
Co., Ltd.
60,000, % 2021-12-30
Newly incorporated
Guizhou Kanggui Energy Co., Ltd. 100,000, % 2021-12-31 Newly incorporated
Xi'an Feihe Real Estate Development Co., Ltd. 1,000, % 2021-9-8 Acquired
Xi'an Huasheng Jiacheng Real Estate Co., Ltd. 100,000, % 2021-10-12 Acquired
Sichuan Chengrui Real Estate Co., Ltd. 25,000, % 2021-11-30 Acquired
Yantai Kangyun Industrial Development Co.,
Ltd.
30,000, % 2021-3-31
Losing control power
Yantai Kangyun Real Estate Development Co.,
Ltd.
30,000, % 2021-3-31
Losing control power
Shenzhen Kangxin Real Estate Co., Ltd. 50,000, % 2021-6-17 Losing control power
Henan Kanghan Real Estate Co., Ltd. 50,000, % 2021-6-17 Losing control power
Shandong Econ Technology Co., Ltd. 257,984, % 2021-11-25 Losing control power
Donggang Kangrun Environmental
Management Co., Ltd.
100,000, % 2021-11-25
Losing control power
Subei Mongol Autonomous County Kangrun
Water Co., Ltd.
100,000, % 2021-11-25
Losing control power
Kanghong (Yantai) Environmental Technology
Co., Ltd.
5,680, % 2021-11-25
Losing control power
Konka Group Co., Ltd. Annual Report 2021
27
Weifang Sihai Kangrun Investment Operation
Co., Ltd.
171,000, % 2021-11-25
Losing control power
Dayi Kangrun Water Co., Ltd. 50,000, % 2021-11-25 Losing control power
Suining Pengxi Kangrun Environmental
Management Co., Ltd.
19,272, % 2021-11-25
Losing control power
Laizhou Lairun Wastewater Treatment Co.,
Ltd.
56,361, % 2021-11-25
Losing control power
Funan Kangrun Water Co., Ltd. 122,500, % 2021-11-25 Losing control power
Lushan Kangrun Environmental Management
Co., Ltd.
100,000, % 2021-11-25
Losing control power
Tongchuan Kangrun Honghui Environmental
Management Co., Ltd.
76,000, % 2021-11-25
Losing control power
Wuhan Runyuan Wastewater Treatment Co.,
Ltd.
142,800, % 2021-11-25
Losing control power
Tingyuan Environmental Technology
(Shanghai) Co., Ltd.
50,000, % 2021-11-25
Losing control power
Xixian Kangrun Xijian Water Environment
Development Co., Ltd.
163,780, % 2021-11-25
Losing control power
Gaoping Kangrun Environmental Protection &
Water Co., Ltd.
100,000, % 2021-11-25
Losing control power
Mengcheng Kangrun Anjian Water Co., Ltd. 100,000, % 2021-11-25 Losing control power
Chongzhou Kangrun Environment Co., Ltd. 50,000, % 2021-11-25 Losing control power
Xi'an City Gaoling District Kangrun
Environmental Engineering Co., Ltd.
73,710, % 2021-11-25
Losing control power
Ankang Kangrun Xinheng Water Environment
Co., Ltd.
100,000, % 2021-11-25
Losing control power
Changning Kangrun Water Co., Ltd. 50,000, % 2021-11-25 Losing control power
Linfen Kangrun Jinze Water Supply Co., Ltd. 95,000, % 2021-11-25 Losing control power
Kangruncheng Environmental Technology
(Yantai) Co., Ltd.
10,000, % 2021-11-25
Losing control power
Bokang Renewable Resources (Yantai) Co.,
Ltd.
30,000, % 2021-11-25
Losing control power
Laizhou Binhai Wastewater Treatment Co.,
Ltd.
30,000, % 2021-11-25
Losing control power
Binzhou Beihai Jingmai Industrial
Development Co., Ltd.
50,000, % 2021-11-25
Losing control power
Konka Group Co., Ltd. Annual Report 2021
28
Beijing Econ Runfeng Technology Co., Ltd. 50,000, % 2021-11-25 Losing control power
Econ Environmental Engineering Co., Ltd. 50,000, % 2021-11-25 Losing control power
Shanghai Jiyi Environmental Technology Co.,
Ltd.
10,000, % 2021-11-25
Losing control power
Binzhou Econ Zhongke Environmental
Technology Co., Ltd.
50,000, % 2021-11-25
Losing control power
Rushan Econ Water Environment Management
Co., Ltd.
100,000, % 2021-11-25
Losing control power
Laizhou Lairun Holding Co., Ltd. 100,000, % 2021-11-25 Losing control power
Binzhou Weiyijie Environmental Technology
Co., Ltd.
50,000, % 2021-11-25
Losing control power
Yantai Chunzhiran Environmental Technology
Co., Ltd.
50,000, % 2021-11-25
Losing control power
Laizhou Lairun Environmental Protection Co.,
Ltd.
50,000, % 2021-11-25
Losing control power
Dongguan Kangjia New Materials Technology
Co., Ltd..
10,000, % 2021-12-27
Losing control power
Shenzhen E2info Network Technology Co.,
Ltd.
20,174, % 2021-12-30
Losing control power
E2info (Hainan) Network Technology Co.,
Ltd.
3,000, % 2021-12-30
Losing control power
Shenzhen Kanghuijia Technology Co., Ltd. 24,678, % 2021-12-30 Losing control power
Chongqing Konka Huiying Technology Co.,
Ltd.
30,000,
%
2021-12-30 Losing control power
KK Smartech Limited 12,450,（HKD） % 2021-7-7 Losing control power
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting Period
□Applicable √ Not applicable
(8) Major Customers and Suppliers
Major customers:
Total sales to top five customers (RMB) 15,597,087,
Total sales to top five customers as % of total sales of the
Reporting Period (%)
%
Total sales to related parties among top five customers as % of
total sales of the Reporting Period (%)
%
Top five customers:
No. Customer Sales revenue contributed As % of total sales revenue (%)
Konka Group Co., Ltd. Annual Report 2021
29
for the Reporting Period
(RMB)
1 Customer A 5,453,699, %
2 Customer B 3,971,105, %
3 Customer C 2,397,455, %
4 Customer D 1,892,942, %
5 Customer E 1,881,884, %
Total -- 15,597,087, %
Other information about major customers:
√ Applicable □ Not applicable
None of the top five customers were related parties of the Company. And none of the Company’s
directors, supervisors, executive officers, core technicians, over 5% shareholders, actual controller
or any other related parties held equity interests in the major customers, directly or indirectly.
Major suppliers:
Total purchases from top five suppliers (RMB) 16,706,736,
Total purchases from top five suppliers as % of total purchases
of the Reporting Period (%)
%
Total purchases from related parties among top five suppliers
as % of total purchases of the Reporting Period (%)
%
Top five suppliers:
No. Supplier
Purchase in the Reporting
Period (RMB)
As % of total purchases (%)
1 Supplier A 6,635,611, %
2 Supplier B 2,831,037, %
3 Supplier C 2,672,973, %
4 Supplier D 2,306,061, %
5 Supplier E 2,261,052, %
Total -- 16,706,736, %
Other information about major suppliers:
√ Applicable □ Not applicable
None of the top five customers were related parties of the Company. And none of the Company’s
directors, supervisors, executive officers, core technicians, over 5% shareholders, actual controller
or any other related parties held equity interests in the major customers, directly or indirectly.
3. Expense
Unit: RMB
2021 2020 Change (%) Reason for any significant
Konka Group Co., Ltd. Annual Report 2021
30
change
Selling
expense
1,428,062, 1,825,626, %
Administr
ative
expense
960,449, 1,022,981, %
Finance
costs
952,642, 1,091,609, %
R&D
expense
616,335, 681,878, %
4. R&D Investments
√ Applicable □ Not applicable
Names of main R&D
projects
Project objectives Project progress Objectives to be achieved
Expected impact on the
Company
Micro LED Display
Key Technology
Research and
Development Project
Complete 104-inch
micro LED panel
Chip on glass stack-up
has been researched. The
drive backplate of the
large-size Micro LED
TV is completed. The
normal driving of the
Micro LED panel is
realized.
Enable 8K display for
104-inch Micro LED
panel
The completion of this
project will help
accumulate core Micro
LED technology and
enhance the Company's
R&D strength.
Efficiency
Improvement Project
for Mini LED &
Micro LED
Research and
develop Micro
LED epitaxy and
chip technology to
realize
independent design
and supply of key
components in
Micro LED.
Small batch and medium
batch trial productions of
both Micro LED chips
and Mini LED chips
have been completed.
Mass production of micro
LED and mini LED chips
Advancement of
Mass Transfer
Technology for Micro
LED
Improve the speed
and yield of mass
transfer, and make
the mass
production of
Micro LED a
possibility.
The self-developed
mixed mass transfer
technology has achieved
significant
improvements in transfer
efficiency and yield.
By using own equipment
and independent process
technology, the mass
transfer yield can be
increased to more than
%.
Research and
Development and
Develop the
fresh-keeping
The technology
development has been
New technologies are
developed and applied to
Improve the
Company's refrigerator
Konka Group Co., Ltd. Annual Report 2021
31
Industrialization of
New Key
Technologies for
Refrigerators Based
on Multi-Field
Coupling.
technology of the
Company's
refrigerator
products.
completed and applied in
the Company's products.
new products. fresh-keeping
technology and
enhance the product
competitiveness.
A new Generation of
Smart Video Service
System for Smart
Home Appliances
Enhance the
additional value of
the operation of
the video business
for smart home
appliance.
It has been applied to
smart home appliances
such as smart TV.
To realize technologies
such as automated and
efficient video
management, personalized
video recommendation,
precise advertising, user
big data management,
multi-platform
compatibility design, and
two-way human-machine
interaction.
The management and
operation efficiency of
the Company's smart
home appliance video
business is improved
and the digital
transformation of the
Company's home
appliance business is
facilitated.
Details about R&D personnel:
2021 2020 Change (%)
Number of R&D personnel 1,505 1,504 %
R&D personnel as % of total
employees
% % %
Educational background of R&D
personnel
—— —— ——
Bachelor’s degree and below 1,344 1,339 %
Master’s degree 151 155 %
Doctoral degree 10 10 %
Age structure of R&D personnel —— —— ——
Below 30 649 719 %
30-40 607 533 %
Over 40 249 252 %
Details about R&D investments:
2021 2020 Change (%)
R&D investments (RMB) 633,205, 683,690, %
R&D investments as % of operating
revenue
% % %
Capitalized R&D investments (RMB) 16,870, 1,811, %
Capitalized R&D investments as %
of total R&D investments
% % %
Konka Group Co., Ltd. Annual Report 2021
32
Reason for any significant change in R&D personnel composition and the impact:
□ Applicable √ Not applicable
Reasons for any significant YoY change in the percentage of R&D investments in operating
revenue:
□ Applicable √ Not applicable
Reason for any sharp variation in the percentage of capitalized R&D investments and rationale:
√ Applicable □ Not applicable
Investments in Micro LED R&D projects increased.
5. Cash Flows
Unit: RMB
Item 2021 2020 Change (%)
Subtotal of cash generated from
operating activities
51,951,723, 52,043,626, %
Subtotal of cash used in
operating activities
51,142,967, 51,865,009, %
Net cash generated from/used in
operating activities
808,756, 178,616, %
Subtotal of cash generated from
investing activities
6,003,236, 4,798,350, %
Subtotal of cash used in investing
activities
8,688,189, 7,250,899, %
Net cash generated from/used in
investing activities
-2,684,952, -2,452,548, %
Subtotal of cash generated from
financing activities
24,829,208, 22,866,838, %
Subtotal of cash used in
financing activities
21,264,351, 20,731,825, %
Net cash generated from/used in
financing activities
3,564,857, 2,135,013, %
Net increase in cash and cash
equivalents
1,670,291, -195,645, %
Explanation of why any of the data above varies significantly:
√ Applicable □ Not applicable
Net cash generated from/used in operating activities changed primarily because the Company
actively promoted sales and cash inflow across all the business divisions during the Reporting
Period, resulting in a decrease in both inventories and accounts receivable.
Net cash generated from/used in financing activities changed primarily because borrowings
Konka Group Co., Ltd. Annual Report 2021
33
increased during the Reporting Period compared to last year.
Reason for any big difference between the net operating cash flow and the net profit for this
Reporting Period:
□ Applicable √ Not applicable
V Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
Amount
As % of total
profit
Source/Reason Recurrent or not
Return on
investment
4,216,806, %
Transfer of part of equity
interests in E2info in the
current period
Not
Gain/loss on
changes in fair value
52,490, % Not
Asset impairments -1,750,376, %
Mainly for some assets,
there are impairment losses
such as receivables,
inventory and goodwill
Not
Non-operating
income
82,601, % Not
Non-operating
expense
24,444, % Not
VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
31 December 2021 1 January 2021 Change in
percentage
(%)
Reason for any
significant changeAmount
As % of
total assets
Amount
As % of
total assets
Monetary
assets
6,489,553, % 5,431,530, % %
Accounts
receivable
3,397,729, % 3,900,897, % %
Contract assets - % 2,870,006, % %
Inventories 4,068,537, % 4,521,300, % %
Investment
property
776,525, % 538,585, % %
Long-term
equity
5,902,588, % 4,375,833, % %
Konka Group Co., Ltd. Annual Report 2021
34
investments
Fixed assets 4,010,295, % 3,178,642, % %
Construction in
progress
1,490,777, % 9,236,643, % %
Right-of-use
assets
71,210, % 104,222, % %
Short-term
borrowings
9,920,675, % 10,990,550, % %
Contract
liabilities
652,910, % 1,217,367, % %
Long-term
borrowings
3,529,140, % 5,964,748, % %
Lease liabilities 42,532, % 62,278, % %
Indicate whether overseas assets account for a larger proportion of the total assets.
□ Applicable √ Not applicable
2. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
Unit: RMB
Item
Beginning
amount
Gain/loss on
fair-value
changes in the
Reporting Period
Cumula
tive
fair-val
ue
changes
charged
to
equity
Impairme
nt
allowance
for the
Reporting
Period
Purchased in
the
Reporting
Period
Sold in the
Reporting
Period
Other
changes
Ending amount
Financial assets
1. Trading
financial assets
(derivative
financial assets
excluded)
618,249, 3,691, 621,940,
4. Other equity
instrument
investment
25,343, -1,501, 23,841,
Subtotal of
financial assets
643,592, 3,691, - - - 621,940, -1,501, 23,841,
Other 1,962,211, 52,705, - - 657,201, 307,266, 2,364,852,
Total of the 2,605,804, 56,396, - - 657,201, 929,207, -1,501, 2,388,693,
Konka Group Co., Ltd. Annual Report 2021
35
above
Financial
liabilities
0 0
Particulars about other changes:
Item Beginning amount
Gain/loss on
fair-value changes in
the Reporting Period
Cumulative
fair-value
changes charged
to equity
Impairme
nt
allowance
for the
Reporting
Period
Purchased in the
Reporting Period
Sold in the Reporting
Period
Other
chang
es
Ending amount
Other
non-current
financial assets
1,878,154, 52,705, 585,711, 223,209, 2,293,361,
Receivables
financing
84,057, 71,490, 84,057, 71,490,
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes √ No
3. Restricted Asset Rights as at the Period-End
Item
Ending carrying value
(RMB)
Reason for restriction
Monetary assets 521,205,
Of which, RMB467,911, was margin deposit pledged for borrowings or issuing
bank acceptance bills; RMB19,966, was financial supervision account funds;
RMB20,918, was fixed-term deposit that cannot be withdrawn in advance;
RMB12,409, was restricted for other reasons.
Notes receivable 540,032, for billing
Investment property 354,245, for borrowings
Fixed assets 1,261,093,
Mortgaged for borrowings, mortgaged for guarantee of former
shareholders, mortgaged for financing lease
Intangible assets 380,518, for borrowings, mortgaged for guarantee of former shareholders
Construction in
progress
76,401, for financing lease
Total 3,133,498,
VII Investments Made
1. Total Investment Amount
√ Applicable □ Not applicable
Amount of Reporting Period (RMB)
Amount of the same period of last year
(RMB)
Change (%)
Konka Group Co., Ltd. Annual Report 2021
36
7,481,330, 5,893,962, %
2. Major Equity Investments Made in the Reporting Period
□Applicable √ Not applicable
3. Major Non-Equity Investments Ongoing in the Reporting Period
√ Applicable □ Not applicable
Unit: RMB
Item
Invest
ment
meth
od
Fixed
assets
invest
ment
or not
Indu
stry
invol
ved
Input amount in
the Reporting
Period
Accumulative
actual input
amount as of the
period-end
Capit
al
resou
rces
Pr
ogr
ess
Est
im
ate
d
rev
en
ues
Accum
ulative
realized
revenue
s as of
the
period-
end
Reason
for not
meeting
the
schedul
e and
expecte
d
revenue
s
Discl
osure
date
(if
any)
Disclo
sure
index
(if
any)
Dongguan
Konka
Intelligent
Industrial Park
Self-b
uild
Yes
Elect
ronic
indu
stry
128,898, 347,918,
Self-f
unde
d
N/A
2017-
03-11
Suining
Konka
Electronic
Technology
Industrial Park
Self-b
uild
Yes
Elect
ronic
indu
stry
147,276, 333,062,
Self-f
unde
d
N/A
2018-
10-17
Konka
Chuzhou
Smart
Appliances
and
Equipment
Industrial Park
Self-b
uild
Yes
Elect
ronic
indu
stry
174,000, 657,202,
Self-f
unde
d
N/A
2018-
12-05
Chongqing
Konka
Semiconducto
r Photoelectric
Industrial Park
Self-b
uild
Yes
Elect
ronic
indu
stry
181,506, 284,948,
Self-f
unde
d
N/A
2019-
06-14
Yancheng
Semiconducto
r Assembly &
Test Base
Self-b
uild
Yes
Elect
ronic
indu
stry
147,726, 148,527,
Self-f
unde
d
N/A
2019-
11-26
Konka Group Co., Ltd. Annual Report 2021
37
Konka
Intelligent
Terminal
Manufacturing
Base for
Export
Self-b
uild
Yes
Elect
ronic
indu
stry
32,684, 40,923,
Self-f
unde
d
N/A
2020-
06-06
Frestec
Refrigeration
Park
Self-b
uild
Yes
Elect
ronic
indu
stry
12,488, 109,172,
Self-f
unde
d
N/A
2020-
07-21
Xi’an Konka
Smart
Appliances
Headquarters
Project
Self-b
uild
Yes
Elect
ronic
indu
stry
141,515, 141,515,
Self-f
unde
d
N/A
2021-
02-10
Total -- -- -- 966,097, 2,063,269, -- -- -- -- --
Note: Regarding Dongguan Konka Intelligent Industrial Park, Chongqing Konka Semiconductor
Photoelectric Industrial Park, Suining Konka Electronic Technology Industrial Park, Frestec
Refrigeration Park, and Konka Intelligent Terminal Manufacturing Base for Export, project land has
been obtained and construction begins. The infrastructure of Konka Chuzhou Smart Appliances and
Equipment Industrial Park is going through acceptance check upon the completion of construction.
As for Xi’an Konka Smart Appliances Headquarters Project, it is at a stage of construction.
Yancheng Semiconductor Assembly & Test Base has been put into production.
4. Financial Investments
(1) Securities Investments
□Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Investments in Derivative Financial Instruments
□Applicable √ Not applicable
No such cases in the Reporting Period.
5. Use of Funds Raised
√ Applicable □ Not applicable
（1）Overall use of the raised funds
√ Applicable □ Not applicable Unit: Ten thousand Yuan
To raise
the year
Raise
way
Total
fund
raised
The total
amount
of funds
collected
has been
Accumu
lated use
of the
total
amount
Total
amount
of funds
raised
for
Accumu
lative
total
amount
of raised
Proporti
on of the
total
amount
of raised
Total
funds
raised
have not
yet been
The
purpose
and
destinati
on of the
Idle
more
than two
years
raised
Konka Group Co., Ltd. Annual Report 2021
38
used in
this
period
of raised
funds
changin
g
purposes
during
the
reportin
g period
funds
for
change
of use
funds
for
cumulati
ve
change
of use
used raised
funds
have not
been
used
funds
2021
Non-pub
lic
offering
of
corporat
e bonds
230,000 230,000 230,000 0 0 % 0 No 0
total -- 230,000 230,000 230,000 0 0 % 0 -- 0
Description of the overall use of the raised funds
The company uses and manages the raised funds strictly in accordance with the Standard Operation Guidelines
for Listed Companies of Shenzhen Stock Exchange and other laws and regulations as well as the Company's
Management System for Raised Funds, and there is no illegal use of the raised funds.
（2）Project status of raised funds commitment
□Applicable √ Not applicable
（3）Project changes of raised funds
□Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Interests
√ Applicable □ Not applicable
Counterparty
Equity
interest
s sold
Date
of
sale
Sell
ing
pric
e
(R
MB
’0,0
00)
Amou
nt
contrib
uted
by the
equity
interest
s to net
income
of the
Compa
Eff
ect
of
the
sal
e
on
the
Co
m
pa
Amou
nt
contri
buted
by the
sale to
net
incom
e of
the
Comp
Pri
cin
g
pri
nci
ple
Re
lat
ed
-p
art
y
tra
ns
act
io
n
Relati
onshi
p
betwe
en
count
erpart
y and
the
Com
pany
Owner
ship
fully
transfe
rred or
not
Executed as
scheduled or
not, if not,
state reason
and actions
taken
Discl
osure
date
Inde
x to
discl
osed
infor
mati
on
file:///D:/Program%20Files%20(x86)/Youdao/Dict/
Konka Group Co., Ltd. Annual Report 2021
39
ny
from
period-
beginn
ing to
date of
sale
(RMB’
0,000)
ny any as
a
perce
ntage
of the
Comp
any’s
net
incom
e (%)
or
no
t
Yantai Huayi Kangqiao Real
Estate Co., Ltd.
17%
interest
in
Yantai
Kangyu
n
Industri
al
Develo
pment
Co.,
Ltd.
31
Mar.
2021
3,45
1
Op
ti
mi
zin
g
the
Co
m
pa
ny
’s
all
oc
ati
on
of
ass
ets
,
inc
rea
sin
g
ca
pit
al
liq
ui
dit
y
%
Val
uati
on
No No Yes N/A
14
Janua
ry
2021
http:
//ww
info.
com.
cn/n
ew/i
ndex
Shanghai Songpu Enterprise
Management Co., Ltd.
39%
interest
in
Shangh
ai
Konka
Green
Techno
logy
Co.,
Ltd.
13
Apr.
2021
7,47
8
0 %
Val
uati
on
No No Yes N/A
2
Mar.
2021
Xinxiang Jianteng Real
Estate Development Co.,
Ltd.
51%
interest
in
Shenzh
en
Kangxi
n
Propert
y Co.,
Ltd.
17
Jun.
2021
10,4
42
%
Val
uati
on
No No Yes N/A
27
Mar.
2021
Konka Group Co., Ltd. Annual Report 2021
40
Shandong Hi-speed Company
Limited
%
interest
in
Shandon
g Econ
Technol
ogy
Co.,Ltd.
25
Nov.
2021
30,6
48
1,
5
%
Val
uati
on
No Yes N/A
21
April
2021
Shenzhen Qiaoyi Digital
Technology Co., Ltd., Yancheng
Kangyan Information Industry
Investment Partnership (limited
partnership), Shanghai Huandian
Information Technology Co.,
Ltd., Chongqing Kangxin Equity
Investment Fund Partnership
(limited partnership), Chongqing
Kunyu Innovation Intelligence
Private Equity Investment Fund
Partnership (limited partnership),
Hainan Huilong Investment
Partnership (Limited
Partnership), Yibin Kanghui
Electronic Information Industry
Equity Investment Fund
Partnership (limited partnership),
Xiyue New Media (Zhuhai)
Investment Fund Partnership
(limited partnership), Hangzhou
Yuanxing Yuhan Investment
Fund Partnership (limited
partnership), Zhuhai Zhongdi
Jinqiao Equity Investment
Partnership (Limited
Partnership), Tianjin Kaiyuan
Future Technology Venture
Capital Fund Partnership
(limited Partnership), Hangzhou
Huashu Zhiping Information
Technology Co., Ltd., Hunan
Changsha Tianxin District Jiuyue
Venture Capital Investment
Partnership (limited partnership),
Hunan Jiucheng Venture Capital
70%
interest
in
Shenzhe
n E2info
Network
Technol
ogy Co.,
Ltd
30
Dec.
2021
280,
000
11,587.
87
%
Val
uati
on
Ye
s
Shenz
hen
Qiaoyi
Digita
l
Techn
ology
Co.,
Ltd.
and
the
Comp
any
share
the
same
contro
lling
shareh
older,
OCT
Enterp
rises
Co.,
Ltd.
Yes N/A
21 Jul.
2021
Konka Group Co., Ltd. Annual Report 2021
41
Investment Partnership (limited
partnership), Jiangxi Junjian
Industrial Limited Company,
Chutian Dragon Co., Ltd.,
Beijing All View Cloud Big Data
Technology Co., Ltd.
IX Major Subsidiaries
√ Applicable □ Not applicable
Major fully/majority-owned subsidiaries and those minority-owned subsidiaries with an over 10%
effect on the Company’s net profit
Unit: RMB
Name
Relati
onship
with
the
Comp
any
Principal
activity
Registered capital Total assets Net assets Operating revenue
Operating
profit
Net profit
Konka Ventures
Development
(Shenzhen)
Co., Ltd.
Subsid
iary
Enterprise
management
consulting
and
incubation
services
RMB5,000,000 127,810, 64,662, 70,087, 11,357, 11,865,
Anhui Konka
Electronic Co.,
Ltd.
Subsid
iary
Production
and sale of
electronics
RMB140,000,000 2,709,207, 623,629, 4,976,928, 20,101, 12,088,
Hong Kong
Konka Co.,
Ltd.
Subsid
iary
Export &
import of
electronics
HKD500,000 2,395,637, 334,620, 2,950,550, 120,196, 99,670,
Shenzhen
Wankaida
Science and
Technology
Co., Ltd.
Subsid
iary
Software
design and
technology
development
RMB10,000,000 117,380, 114,721, 39,483, 31,505, 27,814,
Chain Kingdom
Memory
Technologies
Co., Limited
Subsid
iary
Export &
import of
electronics
USD4,876, 1,124,098, 140,892, 9,416,436, 21,235, 16,707,
Subsidiaries obtained or disposed of in the Reporting Period:
√ Applicable □ Not applicable
Konka Group Co., Ltd. Annual Report 2021
42
Subsidiary
How subsidiary was obtained or
disposed in the Reporting Period
Effects on overall operations and
operating performance
Chongqing Kanglei Optoelectronic Technology Co.,
Ltd.
De-registered
For better allocation of assets
Henan Kangxin Real Estate Co., Ltd. De-registered
Shenzhen Kangquan Enterprise Management
Consulting Co., Ltd.
De-registered
Shenzhen Konka Suyuan Investment Industrial
Limited Company
De-registered
Shenzhen Konka Industrial Park Development Co.,
Ltd.
De-registered
Xiamen Dalong Trade Co., Ltd. De-registered
Nanjing Chuanghui Smart Technology Co., Ltd. De-registered
Hefei Chain Kingdom Memory Technologies Co.,
Limited.
De-registered
Kangxin Semiconductor (Yantai) Co., Ltd. De-registered
Konka Kowin Memory Technology (Hong Kong) Co.,
Limited.
Newly incorporated
Beneficial to the development of
the Company’s relevant business
Kanka Industrial and Trade Technology. Newly incorporated
Shaanxi Konka Intelligent Appliance Co., Ltd. Newly incorporated
Kangruncheng Environmental Technology (Yantai)
Co., Ltd.
Newly incorporated
Yibin Kangrun Medical Waste Centralized Treatment
Co., Ltd.
Newly incorporated
Suining Konka Flexible Electronic Technology Co.,
Ltd.
Newly incorporated
Yibin Kangrun Environmental Protection Power
Generation Co., Ltd.
Newly incorporated
Nantong Hongdin Smart Technology Co., Ltd. Newly incorporated
Suining Konka Hongye Electronics Co., Ltd. Newly incorporated
Konka Huazhong (Hunan) Technology Co., Ltd. Newly incorporated
Kangxin Semiconductor (Yantai) Co., Ltd. Newly incorporated
Chuzhou Konka Precision Intelligent Manufacturing
Technology Co., Ltd.
Newly incorporated
Chongqing Xinyuan Semiconductor Co., Ltd. Newly incorporated
Jiangxi Konka Industrial Park Development Co. Ltd. Newly incorporated
Ruichang Kangrui Real Estate Co., Ltd. Newly incorporated
Konka Group Co., Ltd. Annual Report 2021
43
Konka Industrial Development (Wuhan) Co., Ltd. Newly incorporated
Guizhou Konka New Material Technology Co., Ltd. Newly incorporated
Guizhou Kanggui Material Technology Co., Ltd. Acquired
Chongqing Jiarun Real Estate Co., Ltd. Newly incorporated
Nantong Kanghai Technology Industry Development
Co., Ltd.
Newly incorporated
Guangdong Xinwei Semiconductor Co., Ltd. Newly incorporated
Chongqing Kangyiyun Business Operation
Management Co., Ltd.
Newly incorporated
Shenzhen Yijiakang Smart Terminal Technology Co.,
Ltd.
Newly incorporated
Shenzhen Kangxiaojia Digital Information Technology
Co., Ltd.
Newly incorporated
Guizhou Kangkai Material Technology Co., Ltd. Newly incorporated
Chongqing Kangxingrui Renewable Resources Co.,
Ltd.
Newly incorporated
Guizhou Kanggui Energy Co., Ltd. Newly incorporated
Xi'an Feihe Real Estate Development Co., Ltd. Acquired
Xi'an Huasheng Jiacheng Real Estate Co., Ltd. Acquired
Sichuan Chengrui Real Estate Co., Ltd. Acquired
Yantai Kangyun Industrial Development Co., Ltd. Equity transfer
Beneficial to the development of
the Company’s relevant business
and bring about a certain amount
of gains
Yantai Kangyun Real Estate Development Co., Ltd. Equity transfer
Shenzhen Kangxin Real Estate Co., Ltd. Equity transfer
Henan Kanghan Real Estate Co., Ltd. Equity transfer
Shandong Econ Technology Co., Ltd. Equity transfer
Donggang Kangrun Environmental Management Co.,
Ltd.
Equity transfer
Subei Mongol Autonomous County Kangrun Water
Co., Ltd.
Equity transfer
Kanghong (Yantai) Environmental Technology Co.,
Ltd.
Equity transfer
Weifang Sihai Kangrun Investment Operation Co.,
Ltd.
Equity transfer
Dayi Kangrun Water Co., Ltd. Equity transfer
Suining Pengxi Kangrun Environmental Management
Co., Ltd.
Equity transfer
Konka Group Co., Ltd. Annual Report 2021
44
Laizhou Lairun Wastewater Treatment Co., Ltd. Equity transfer
Funan Kangrun Water Co., Ltd. Equity transfer
Lushan Kangrun Environmental Management Co.,
Ltd.
Equity transfer
Tongchuan Kangrun Honghui Environmental
Management Co., Ltd.
Equity transfer
Wuhan Runyuan Wastewater Treatment Co., Ltd. Equity transfer
Tingyuan Environmental Technology (Shanghai) Co.,
Ltd.
Equity transfer
Xixian Kangrun Xijian Water Environment
Development Co., Ltd.
Equity transfer
Gaoping Kangrun Environmental Protection & Water
Co., Ltd.
Equity transfer
Mengcheng Kangrun Anjian Water Co., Ltd. Equity transfer
Chongzhou Kangrun Environment Co., Ltd. Equity transfer
Xi'an City Gaoling District Kangrun Environmental
Engineering Co., Ltd.
Equity transfer
Ankang Kangrun Xinheng Water Environment Co.,
Ltd.
Equity transfer
Changning Kangrun Water Co., Ltd. Equity transfer
Linfen Kangrun Jinze Water Supply Co., Ltd. Equity transfer
Kangruncheng Environmental Technology (Yantai)
Co., Ltd.
Equity transfer
Bokang Renewable Resources (Yantai) Co., Ltd. Equity transfer
Laizhou Binhai Wastewater Treatment Co., Ltd. Equity transfer
Binzhou Beihai Jingmai Industrial Development Co.,
Ltd.
Equity transfer
Beijing Econ Runfeng Technology Co., Ltd. Equity transfer
Econ Environmental Engineering Co., Ltd. Equity transfer
Shanghai Jiyi Environmental Technology Co., Ltd. Equity transfer
Binzhou Econ Zhongke Environmental Technology
Co., Ltd.
Equity transfer
Rushan Econ Water Environment Management Co.,
Ltd.
Equity transfer
Laizhou Lairun Holding Co., Ltd. Equity transfer
Binzhou Weiyijie Environmental Technology Co., Ltd. Equity transfer
Yantai Chunzhiran Environmental Technology Co., Equity transfer
Konka Group Co., Ltd. Annual Report 2021
45
Ltd.
Laizhou Lairun Environmental Protection Co., Ltd. Equity transfer
Dongguan Kangjia New Materials Technology Co.,
Ltd..
Equity transfer
Shenzhen E2info Network Technology Co., Ltd. Equity transfer
E2info (Hainan) Network Technology Co., Ltd. Equity transfer
Shenzhen Kanghuijia Technology Co., Ltd. Capital decrease
Chongqing Konka Huiying Technology Co., Ltd. Capital decrease
KK Smartech Limited Capital increase
Information about principal subsidiaries and joint stock companies:
None
X Structured Bodies Controlled by the Company
□Applicable √ Not applicable
XI Prospect of the Company’s Future Development
In 2022, based on the external situation and the actual situation of the Company, the Company will
tackle key problems in core technologies, build core capabilities and achieve high-quality
development. The Company’s key works for 2022 are as follows:
(I) Explore new business around the upstream and downstream of the mainline
In 2022, around the main industrial line of "semiconductor + new consumer electronics (CE) +
industrial park", the Company will adopt a strategy of lengthening and broadening. The Company
will extend the industrial chain vertically and widen the product chain horizontally, and build the
Company's new core competitiveness with advantages in technologies and supply chain.
(II) Further promote cost reduction and fee control
In 2022, the Company will further enhance cost reduction and fee control. First, it will reduce costs.
The Company will focus on reducing supply chain costs. The second is to manage expenses. While
improving the use efficiency of various expenses, the Company will reduce the cost of strategic
promotion, logistics and sales by changing the operation mode..
(III) Vigorously create benchmark quality products
In 2022, the Company will make great efforts to create benchmark quality products. By
streamlining products, functions and processes, the Company will focus its resources on creating
high-tech, high-margin and high-praise products in order to meet the needs of users and intensify
the Company's competitive advantages.
(IV) Optimize the asset and financial structure
In 2022, the Company, with the aim of optimizing the assets and financial structure, will, first of all,
actively improve the debt structure and reduce the proportion of short-term liabilities; secondly, it
will revitalize existing assets, accelerate the realization of assets, and speed up the turnover of
inventory and accounts receivable; finally, it will actively expand financing channels and reduce
financing costs.
(V) Business operations
1. Technology Park Sub-Division
Konka Group Co., Ltd. Annual Report 2021
46
In 2022, the key tasks of the technology park sub-division are as follows: First, the Company will
explore increments, and plan for new sectors in the technology park sub-division to seek
development; second, in terms of post-investment management, the Company will ensure that the
controlled projects are delivered on schedule, and track the projects it participates.
2. Multimedia Sub-Division
In 2022, the key tasks of the multimedia sub-division are as follows: First, the Company will
enhance the quality of operation, continue to improve business performance of the multimedia
sub-division and lay a good foundation for turning losses into profits; second, the Company will
strengthen products and manufacturing, create benchmark quality products, and achieve substantial
growth of OEM and export business relying on the manufacturing capabilities of intelligent
manufacturing factories; third, the Company will optimize the management structure, and further
optimize management structure around manufacturing and marketing of the multimedia
sub-division; fourth, it is channel reuse. The multimedia business will realize channel reuse through
continuous enrichment of product lines so as to improve channel efficiency.
3. White Goods Sub-Division
In 2022, the key tasks of the white goods sub-division are as follows: First, the Company will build
a new pattern of the white goods industry through coordinated development of the full-category of
"refrigerators + washing machines + air conditioners + freezers + kitchen appliance"; second, the
Company will make greater efforts to enhance gross profits of the white goods sub-division; third,
the Company will actively engage in key areas in the upstream of the industrial chain, build
industrial barriers by means of capital, and further enhance the right to speak in the industrial chain
of white goods.
4. Industry and Trade Technology Sub-Division
In 2022, the key tasks of the industry and trade technology sub-division are as follows: First, the
Company will further promote the "trade to industry", and find new growth points through the
development of new customers, new businesses and new products, improve the ability to acquire
gross profit, and continuously improve the quality of operations; second, the Company will adjust
the income structure, continuously increase the proportion of domestic trade income, and promote
sustained and healthy business development.
5. Investment Sub-Division
In 2022, the key tasks of the investment sub-division are to do a good job in investment,
management and withdrawal of existing funds, and continue to expand the number and scale of
funds, so as to form a pattern of sufficient fundraising, sound investment, proper management, and
effective withdrawal.
6. Semiconductor Sub-Division
In 2022, the key tasks of the semiconductor sub-division are as follows: First, the Company will
realize industrialization and accelerate the industrialization of the four photoelectric technology
projects of Mini backlight, Mini direct display, Mini chip and Micro chip; second, the Company
will ensure that the R&D plan is completed on schedule; third, the Company will enhance operation
of Yancheng Semiconductor Assembly & Test Base, so as to realize the replication of the project.
7. Environmental Protection Sub-Division
In 2022, the key tasks of the environmental protection sub-division are as follows: First, the
Company will actively transform the environmental protection sub-division into new energy, rely on
photovoltaic glass and other projects to actively expand to the upstream and downstream of the
Konka Group Co., Ltd. Annual Report 2021
47
photovoltaic industry; second, the Company will promote the transformation of Chongqing Project
Company from scrap recycling business to automobile dismantling field, and accelerate the
acquisition of corresponding industrial development qualifications.
8. Mobile Internet Sub-Division
In 2022, the Company will focus on creating core products, promoting business diversification and
tapping sustainable high-yield businesses in the mobile Internet Sub-Division.
9. PCB Sub-Division
In 2022, the Company will further accelerate the growth of business scale, improve the product
structure, expand from the current product line to High Density Interconnection (HDI) board and
Flexible Printed Circuit (FPC) board, improve the product structure of PCB products, and realize
diversified and high-end products in the PCB sub-division.
10. Venture Capital Sub-Division
In 2022, the Company will build a commercial real estate operator mode based on the operation of
projects including OCT Creative Park, Wuhan and Foshan, and open up new profit support
businesses in the sub-division. In addition, the Company will continue to improve and upgrade the
construction of state-level incubators, and rely on venture capital funds and incubator platforms to
cultivate and incubate high-quality enterprises.
XII Communications with the Investment Community such as Researches, Inquiries and
Interviews
√ Applicable □ Not applicable
Date Place
Way
of
comm
unicati
on
Type of
commu
nication
party
Communication party
Main discussions and
materials provided by the
Company
Index to
main
informatio
n
communic
ated
11
January
2021
Conference
Room of
Office
Building of
Konka R&D
Building
By
phone
Instituti
on
Wang Anya (Taiwan Dongteng
Innovation Investment Co.,
Ltd.)
Record Form for Investor
Relations Activities (No.:
2021-01)
http://ww
/index
6 April
2021
Conference
Room of
Office
Building of
Konka R&D
Building
Other
Individu
al
Investors participating in the
Online Performance
Presentation for 2020 of
Konka Group Co., Ltd.
through
Record Form for Investor
Relations Activities (No.:
2021-02)
22
Septembe
r 2021
Conference
Room of
Office
One-o
n-one
meetin
Instituti
on
Liu Menglin, Luo Weibin
(Dongguan Securities)
Record Form for Investor
Relations Activities (No.:
Konka Group Co., Ltd. Annual Report 2021
48
Building of
Konka R&D
Building
g 2021-03)
18
October
2021
Conference
Room of
Office
Building of
Konka R&D
Building
One-o
n-one
meetin
g
Instituti
on
Xu Liang, Chen Tong (Guosen
Securities)
Record Form for Investor
Relations Activities (No.:
2021-04)
29
October
2021
Conference
Room of
Office
Building of
Konka R&D
Building
One-o
n-one
meetin
g
Instituti
on
Xie Jude (Shenzhen Guanlan
Lake Investment Holdings
Co., Ltd.)
Record Form for Investor
Relations Activities (No.:
2021-05)
5
Novembe
r 2021
Conference
Room of
Office
Building of
Konka R&D
Building
One-o
n-one
meetin
g
Instituti
on
Hong Yan (Hangzhou Jiulong
Asset Management Co., Ltd.)
Cai Tianfu ( Shenzhen Dadao
Zhicheng Investment
Management Partnership
(Limited Partnership))
Record Form for Investor
Relations Activities (No.:
2021-06)
26
Novembe
r 2021
Conference
Room of
Office
Building of
Konka R&D
Building
Other
Instituti
on
Xu Yong (Ping An Securities)
Gao Yibo (Penghua Securities)
Lu Lei (Hawking Capital)
Chen Chunyan (Qianhai
Haochuang)
Yu Junchen (Qianhai
Jumpstart)
Zhang Xun (Infore Capital)
Dong Cheng, Feng Chenxin
(Tefa Fuhai)
Record Form for Investor
Relations Activities (No.:
2021-07)
3
December
2021
Conference
Room of
Office
Building of
Konka R&D
Building
One-o
n-one
meetin
g
Instituti
on
Yan Zhekun (Topsperity
Securities)
Record Form for Investor
Relations Activities (No.:
2021-08)
Konka Group Co., Ltd. Annual Report 2021
49
Part IV Corporate Governance
I General Information of Corporate Governance
In the Reporting Period, strictly in accordance with the Company Law, Securities Law of the PRC,
Code of Corporate Governance for Listed Companies, Share Listing Rules of Shenzhen Stock
Exchange and the relevant rules and regulations of the CSRC, the Company timely amended the
internal control systems such as the Articles of Association and Administrative Method on Provision
of External Financial Aids as well as Management System on Investors Relationship, continuously
perfected the corporate governance structure and standardized the Company’s operation. By the end
of the Reporting Period, the actual conditions of corporate governance basically met the
requirements of the regulatory documents in respect of corporate governance structure of listed
companies issued by CSRC.
(I) Shareholders and the Shareholders’ General Meeting
The Company drew up Articles of Association and Rules for Procedure of Shareholders’ General
Meeting, ensured that all shareholders, in particular medium and minor shareholders, enjoy legal
rights and equal standard. In the Reporting Period, the Company was able to publish announcement
on Shareholders’ General Meetings in advance, convened Shareholders’ General Meeting with
strictly accordance to relevant requirements, so as to enable the shareholders have their rights of
information to the Company’s material issues and the participation rights. In 2021, the Company
convened four Shareholders’ General Meeting in total. The Company seriously did well the
registration, arrangement and organization work for the Shareholders’ General Meeting before the
circular on convening the Shareholders’ General Meeting being published at the designated media.
The Company convened the Shareholders’ General Meeting at the office address of the Company
strictly in line with relevant stipulations, which was convenient in traffic, and the shareholders
could attend the session in accordance with their actual situation. The Company’s directors,
supervisors and senior management staffs made explanations and description for the shareholders’
questions and advices at the session.
(II) Controlling shareholder and the Company
In the Reporting Period, the controlling shareholders and actual controllers strictly regulated its
behavior and complied with laws in exercising their rights and obligations, not bypassed the
Shareholders’ General Meeting to intervene in the Company’s decisions and operations directly or
indirectly. The Company was separated from the controlling shareholders and actual controllers in
aspects of its business, personnel, assets, organ and finance, the Board of Directors, Supervisory
Committee and the internal departments of the Company functioned independently.
(III) Directors and the Board of Directors
Konka Group Co., Ltd. Annual Report 2021
50
The number and structure of the Board Bureau of the Company were in compliance with laws and
regulations. The Company drew up Rules for Procedures of the Board Bureau, so as to ensure a
high efficient operation and scientific decision-making of the Board Bureau; the Company has set
up Independent Director System and engaged three independent directors. In the Reporting Period,
the number of directors and composition of the Board of Directors of the Company as well as the
procedure of selection was in accordance with the requirements of the rules and laws as well as
Articles of Association. The Company set up four special committees, which were Financial Audit
Committee, Nomination Committee, Remuneration & Appraisal Committee, Strategy Committee to
provide profession opinion for the decision of the Board of Directors. All the directors carried out
their work, fulfilled their duties and scrupulously attended the Board sessions in accordance with
Rules of Procedure for the Board of Directors, Rules for Independent Directors, etc. 15 Board
sessions were convened by the Company during the Reporting Period, which brought the
decision-making mechanism of the Board of Directors into full play.
(IV) Supervisors and supervisory committee
The Company has established Rules for Procedures of the Supervisory Committee, persons and
structure of the Supervisory Committee was in line with relevant laws and statutes, supervisors can
earnestly perform their responsibilities, independently and efficiently executed supervision and
check responsibilities with a spirit of being responsible to shareholders. In the Reporting Period, the
number of supervisors and composition of the Supervisory Committee of the Company as well as
their selecting procedure complied with the laws, regulations. In accordance with the requirement of
the Rules of Procedure for Supervisory Committee, the supervisors performed their duties in an
earnest and responsible manner, and exercised their functions of supervision on the decision-making
procedure of the Board of Directors, resolutions and the Company’s operation by law, and took
effective supervision over the Company’s significant events, related transactions, financial position,
as well as the legality and compliance on duty performance by the directors, president and other
senior management members.
(V) Performance Appraisal and Incentive & Restrictive Mechanism
The senior management staffs of the Company were recruited on an open basis and in compliance
with the laws and regulations. The Company has established and gradually improved the
performance appraisal standards and incentive & restrictive mechanism for senior management
staffs, so as to attract qualified personnel, and ensure the stability of senior management staffs.
(VI) Interested parties
During the Reporting Period, the Company fully respected and maintained the legal rights of the
interested parties, and realized the balance of interest among the parties such as society,
shareholders and employees, etc. Meanwhile, the Company protected the rights of the employees,
promoted the environmental protection, and actively joined in the social benefit and charitable
Konka Group Co., Ltd. Annual Report 2021
51
cause so as to jointly promote sustainable and healthy development.
(VII) Information disclosure and transparency
The Company formulated the Management System for Investor Relations and the Management
System for Information Disclosure and the Rules on Implementation for Information Disclosure
Committee. And the Company designated specially-assigned person to take charge of the
information disclosure, and designated specialized department to be responsible for the reception of
shareholders and consultation, actively carrying out th
