[年报]深康佳Ｂ:2020年年度报告（英文版）（更新后）
原标题:深康佳Ｂ:2020年年度报告（英文版）（更新后） KONKA GROUP CO., LTD. ANNUAL REPORT 2020 2021-28 March 2021 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. Liu Fengxi, the Company’s legal representative, Li Chunlei, the Company’s Chief Financial Officer (CFO), and Guo Zhihua, 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 RMB1 (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. Table of Contents Part I Important Notes, Table of Contents and Definitions ........................................................... 2 Part II Corporate Information and Key Financial Information ................................................. 10 Part III Business Summary ............................................................................................................. 15 Part IV Operating Performance Discussion and Analysis ........................................................... 18 Part V Significant Events ................................................................................................................ 44 Part VI Share Changes and Shareholder Information ................................................................. 98 Part VII Preferred Shares ............................................................................................................. 105 Part VIII Convertible Corporate Bonds ...................................................................................... 106 Part IX Directors, Supervisors, Senior Management and Staff................................................. 107 Part X Corporate Governance ...................................................................................................... 118 Part XI Corporate Bonds .............................................................................................................. 130 Part XII Financial Statements ...................................................................................................... 134 Part XIII Documents Available for Reference ............................................................................. 418 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 Konka Ventures Konka Ventures Development (Shenzhen) 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. Yibin Konka Incubator Yibin Konka Incubator Management Co., Ltd. Anhui Konka Anhui Konka Electronic Co., Ltd. Kangzhi Trade Anhui Kangzhi Trade Co., Ltd. Konka Factoring Konka Factoring (Shenzhen) Co., Ltd. Konka Unifortune Shenzhen Konka Unifortune Technology Co., Ltd. Jiali International Jiali International (Hong Kong) Limited Wankaida Shenzhen Wankaida Science and Technology Co., Ltd. Dongguan Konka Dongguan Konka Electronic Co., Ltd. Suining Konka Smart Suining Konka Smart Technology Co., Ltd. Konka Europe Konka (Europe) Co., Ltd. Konka Electrical Appliances Shenzhen Konka Electrical Appliances Co., Ltd. Telecommunication Technology Shenzhen Konka Telecommunications Technology Co., Ltd. Konka Mobility Konka Mobility Co., Limited 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. Anhui Tongchuang Anhui Konka Tongchuang Electrical Appliances Co., Ltd. Anhui Electrical Appliance Anhui Konka Electrical Appliance Technology Co., Ltd. Frestec Refrigeration Henan Frestec Refrigeration Appliance Co., Ltd. Frestec Smart Home Henan Frestec Smart Home Technology Co., Ltd. Frestec Electrical Appliances Henan Frestec Electrical Appliances Co., Ltd. Frestec Household Appliances Henan Frestec Household Appliances Co., Ltd. Jiangsu Konka Smart Jiangsu Konka Smart Electrical Appliances Co., Ltd. Kangjiatong Sichuan Kangjiatong Technology Co., Ltd. Pengrun Technology Shenzhen Konka Pengrun Technology & Industry Co., Ltd. Jiaxin Technology Jiaxin Technology Co., Ltd. Dongguan Packing Dongguan Konka Packing Materials Co., Ltd. E2info Shenzhen E2info Network Technology Co., Ltd. E2info (Hainan) E2info (Hainan) Network Technology Co., Ltd. Beijing Konka Electronic Beijing Konka Electronic Co., Ltd. Konka Leasing Konka Financial Leasing (Tianjin) Co., Ltd. Konka Circuit Shenzhen Kangjia circuit Co., Ltd. Boluo Konka Precision Boluo Konka Precision Technology Co., Ltd. Xiamen Dalong Xiamen Dalong Trading Co., Ltd. Boluo Konka Boluo Konka PCB Co., Ltd. Hong Kong Konka Hong Kong Konka Limited Konka Electrical Appliances Investment Konka Electrical Appliances Investment & Development Co., Ltd. Chain Kingdom Memory Technologies Chain Kingdom Memory Technologies Co., Limited Chain Kingdom Memory Technologies (Shenzhen) Chain Kingdom Memory Technologies (Shenzhen) Co., Ltd. Hefei KONSEMI Hefei KONSEMI Storage Technology Co., Ltd. Konka SmartTech Konka SmartTech Limited Kangjietong Kangjietong (Hong Kong) Limited Konka Electrical Appliances International Trading Konka Electrical Appliances International Trading Co., Ltd. Kanghao Technology Kanghao Technology Co., Ltd. Konka North America Konka North America LLC Konka Investment Shenzhen Konka Investment Holding Co., Ltd. Yibin Konka Technology Park Yibin Konka Technology Park Operation Co., Ltd. Konka Capital Shenzhen Konka Capital Equity Investment Management 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. Industrial Park Development Shenzhen Konka Industrial Park Development Co., Ltd. Zhitong Technology Shenzhen Konka Zhitong Technology Co., Ltd. Electronics Technology Shenzhen Konka Electronics Technology Co., Ltd. Anhui Zhilian Anhui Konka Zhilian E-Commerce Co., Ltd. Youzhihui Shenzhen Youzhihui Technology Co., Ltd. Xiaojia Technology Shenzhen Xiaojia Technology 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. XingDa HongYe GuangDong XingDa HongYe Electronic Co., Ltd. Shanghai Xinfeng Shanghai Xinfeng Zhuoqun PCB Co., Ltd. Liaoyang Kangshun Smart Liaoyang Kangshun Smart Technology Co., Ltd. Liaoyang Kangshun Renewable Liaoyang Kangshun Renewable Energy Co., Ltd. Nanjing Konka Nanjing Konka Electronics Co., Ltd. Yantai Laikang Yantai Laikang Industrial Development Co., Ltd. Econ Technology Shandong Econ Technology Co., Ltd. Beijing Econ Beijing Econ Runfeng Technology Co., Ltd. Shanghai Jiyi Shanghai Jiyi Environmental Technology Co., Ltd. Binzhou Econ Zhongke Binzhou Econ Zhongke Environmental Technology Co., Ltd. Lairun Holding Laizhou Lairun Holding Co., Ltd. Lairun Environmental Protection Laizhou Lairun Environmental Protection Co., Ltd. Lairun Wastewater Laizhou Lairun Wastewater Treatment Co., Ltd. Binhai Wastewater Laizhou Binhai Wastewater Treatment Co., Ltd. Econ Environmental Engineering Econ Environmental Engineering Co., Ltd. Rushan Econ Rushan Econ Water Environment Management 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. Donggang Kangrun Donggang Kangrun Environmental Management Co., Ltd. Kangrunhong Environmental Kangrunhong Environmental Technology (Yantai) Co., Ltd. Dayi Kangrun Water Dayi Kangrun Water Co., Ltd. Suining Pengxi Kangrun Suining Pengxi Kangrun Environmental Management Co., Ltd. Subei Kangrun Water Subei Mongol Autonomous County Kangrun Water Co., Ltd. Weifang Sihai Kangrun Weifang Sihai Kangrun Investment Operation Co., Ltd. Lushan Kangrun Environmental Lushan Kangrun Environmental Management Co., Ltd. Funan Kangrun Water Funan Kangrun Water Co., Ltd. Wuhan Runyuan Wastewater Wuhan Runyuan Wastewater Treatment Co., Ltd. Tongchuan Kangrun Honghui Tongchuan Kangrun Honghui Environmental Management Co., Ltd. Tingyuan Environmental Tingyuan Environmental Technology (Shanghai) Co., Ltd. Gaoping Kangrun Gaoping Kangrun Environmental Protection & Water Co., Ltd. Mengcheng Kangrun Mengcheng Kangrun Anjian Water Co., Ltd. Xixian Kangrun Xixian Kangrun Xijian Water Environment Development Co., Ltd. Chongzhou Kangrun Chongzhou Kangrun Environment Co., Ltd. Xi’an Kangrun Xi’an Gaoling Kangrun Environmental Engineering Co., Ltd. Ankang Kangrun Ankang Kangrun Xinheng Water Environment Co., Ltd. Changning Kangrun Changning Kangrun Water Co., Ltd. Bokang Renewable Bokang Renewable Resources (Yantai) Co., Ltd. Linfen Kangrun Linfen Kangrun Jinze Water Supply Co., Ltd. Konka Huanjia Konka Huanjia (Dalian) Environmental Technology Co., Ltd. Konka Huanjia (Henan) Konka Huanjia (Henan) Environmental Technology Co., Ltd. Shanghai Konka Shanghai Konka Industrial Co., Ltd. Yantai Kangjin Yantai Kangjin Technology Development Co., Ltd. Jiangxi Konka Jiangxi Konka New Material Technology Co., Ltd. Xinfeng Microcrystalline Jiangxi Xinfeng Microcrystalline Jade Co., Ltd. Nano Crystallized Glass Jiangxi Golden Phoenix Nano Crystallized Glass Co., Ltd. Jiangsu Konka Special Material Jiangsu Konka Special Material Technology Co., Ltd. Shenzhen Nianhua Shenzhen Nianhua Enterprise Management Co., Ltd. Shenzhen KONSEMI Shenzhen KONSEMI Co., Ltd. Hefei KONSEMI Hefei KONSEMI Storage Technology Co., Ltd. Yihe Electronic Hefei Yihe Electronic Co., Ltd. Chongqing Konka Chongqing Konka Technology Development Co., Ltd. Shenzhen Huiying Technology Shenzhen Konka Huiying Technology Co., Ltd. Chongqing Huiying Technology Chongqing Konka Huiying Technology Co., Ltd. Konka Eco-Development Shenzhen Konka Eco-Development Investment Co., Ltd. Suining Konka Industrial Park Suining Konka Industrial Park Development Co., Ltd. Konka Ronghe Konka Ronghe Industrial Technology (Zhejiang) Co., Ltd. Suining Electronic Technological Innovation Suining Konka Electronic Technological Innovation Co., Ltd. Shenzhen Chuangzhi Electrical Appliances Shenzhen Konka Chuangzhi Electrical Appliances Co., Ltd. Kanghong (Yantai) Environmental Kanghong (Yantai) Environmental Technology Co., Ltd. Chongqing Kangxingrui Chongqing Kangxingrui Environmental Technology Co., Ltd. Chongqing Kangxingrui Automobile Recycling Chongqing Kangxingrui Scraped Automobile Recycling Co., Ltd. Chongqing Optoelectronic Technology Research Institute Chongqing Konka Optoelectronic Technology Research Institute Co., Ltd. Xinying Semiconductor Konka Xinying Semiconductor Technology (Shenzhen) Co., Ltd. Konka Xinyun Semiconductor Konka Xinyun Semiconductor Technology (Yancheng) Co., Ltd. Jiangkang (Shanghai) Technology Jiangkang (Shanghai) Technology Co., Ltd. Ningbo Kanghanrui Electrical Appliances Ningbo Kanghanrui Electrical Appliances Co., Ltd. Konka Intelligent Manufacturing Shenzhen Konka Intelligent Manufacturing Technology Co., Ltd. Suining Jiarun Property Suining Jiarun Property Co., Ltd. Yantai Kangyun Yantai Kangyun Industrial Development Co., Ltd. Yantai Kangyun Property Yantai Kangyun Property Development Co., Ltd. Chongqing Kanglei Optoelectronic Chongqing Kanglei Optoelectronic Technology Co., Ltd. Yibin Kangrun Yibin Kangrun Environmental Technology Co., Ltd. Henan Kangxin Property Henan Kangxin Property Co., Ltd. Konka Material Hainan Konka Material Technology Co., Ltd. Shenzhen Kangxin Property Shenzhen Kangxin Property Co., Ltd. Henan Kanghan Property Henan Kanghan Property Co., Ltd. Chengdu Konka Incubator Chengdu Konka Incubator Management Co., Ltd. Cross-Border Technological Innovation Shenzhen Konka Cross-Border Technological Innovation Service Co., Ltd. Konka Enterprise Management Guizhou Konka Enterprise Management Service Co., Ltd. Youshi Kangrong Youshi Kangrong Culture Communication Co., Ltd. Life Electric Appliance Shenzhen Konka Life Electric Appliance Co., Ltd. Commercial System Technology Shenzhen Konka Commercial System Technology Co., Ltd. Frestec Smart Henan Frestec Smart Eco Electrical Appliances Co., Ltd. E3info E3info (Hainan) Technology Co., Ltd. Yifang Technology Shenzhen Konka Yifang Technology Co., Ltd. Yuekang Semiconductor Yuekang Semiconductor Technology (Yantai) Co., Ltd. Kangshi Virtual Kangshi Virtual Technology (Yantai) Co., Ltd. Industrial New Town Sichuan Konka Industrial New Town Development Co., Ltd. Kangxin Technology Shenzhen Konka Kangxin Technology Co., Ltd. Hainan Technology Hainan Konka Technology Industry Development Co., Ltd. Nanjing Konka Nanjing Konka Smart Technology Co., Ltd. Zhongshan Kangxin Electronic Zhongshan Kangxin Electronic Technology Co., Ltd. Zhongshan Kang’ao Zhongshan Kang’ao Electronic Co., Ltd. Boxing Xingkang Environmental Boxing Xingkang Environmental Technology Co., Ltd. Yantai Konka Industrial Yantai Konka Industrial Co., Ltd. Shandong Kangxin Shandong Kangxin Industrial Development Co., Ltd. Shenzhen Morsemi Shenzhen Morsemi Semiconductor Technology Co., Ltd. Zhengmao Semiconductor Chongqing Zhengmao Semiconductor Co., Ltd. Dongguan Konka Investment Dongguan Konka Investment Co., Ltd. Kanghong (Yantai) Environmental Technology Park Kanghong (Yantai) Environmental Technology Park Co., Ltd. Chongqing Konka Property Development Chongqing Konka Property Development Co., Ltd. Chongqing Xingyi Property Chongqing Konka Xingyi Property Co., Ltd. Chongqing Fuze Property Chongqing Konka Fuze Property Co., Ltd. Debao New Material Anhui Konka Debao New Material Technology Co., Ltd. Chuzhou Kangxin Health Industry Chuzhou Kangxin Health Industry Development Co., Ltd. Kangxinlong Environmental Protection Hubei Kangxinlong Environmental Protection Co., Ltd. Chongqing Chengda Chongqing Chengda Property Co., Ltd. Chongqing Chunfu Chongqing Chunfu Property Co., Ltd. Chongqing Langheng Chongqing Langheng Property Co., Ltd. Morsemi Hong Kong Morsemi Semiconductor Technology (Hong Kong) Limited 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 Renminbi, expressed in tens of thousands of Renminbi, expressed in hundreds of millions of Renminbi 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) KONKA GROUP CO.,LTD Abbr. (if any) KONKA GROUP Legal representative Liu Fengxi 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 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 www.konka.com Email address [email protected] 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 [email protected] [email protected] III Media for Information Disclosure and Place where this Report Is Lodged Newspapers designated by the Company for information disclosure Securities Times, etc. Website designated by CSRC for publication of http://www.cninfo.com.cn/new/index this Report 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, No.8 Chaoyangmen North Street, Dongcheng District, Beijing, China Accountants writing signatures Guo Dongchao and Zhan Miaoling 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 2020 2019 2020-over-2019 change (%) 2018 Operating revenue (RMB) 50,351,836,554.87 55,119,125,478.72 -8.65% 46,126,797,341.33 Net profit attributable to the listed company’s shareholders (RMB) 477,633,250.14 212,034,210.08 125.26% 411,289,744.68 Net profit attributable to the listed company’s shareholders before -2,367,590,806.95 -1,875,722,546.18 -26.22% -795,400,491.44 exceptional gains and losses (RMB) Net cash generated from/used in operating activities (RMB) 178,616,528.21 -1,543,947,284.59 111.57% -3,229,823,872.66 Basic earnings per share (RMB/share) 0.1984 0.0881 125.20% 0.1708 Diluted earnings per share (RMB/share) 0.1984 0.0881 125.20% 0.1708 Weighted average return on equity (%) 5.79% 2.62% 3.17% 5.11% 31 December 2020 31 December 2019 Change of 31 December 2020 over 31 December 2019 (%) 31 December 2018 Total assets (RMB) 49,876,267,493.61 42,586,955,452.27 17.12% 32,985,061,889.03 Equity attributable to the listed company’s shareholders (RMB) 8,428,640,176.97 8,068,505,598.13 4.46% 8,104,736,790.53 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 2020 2019 Note Operating revenue (RMB) 50,351,836,554.87 55,119,125,478.72 Deductions from operating revenue (RMB) 445,172,864.05 490,479,238.61 Revenue from scrap sales, utilities revenue, handling charges received,rental revenue, material sales revenue, and other revenue not related to the principal business activities Operating revenue net of deductions (RMB) 49,906,663,690.82 54,628,646,240.11 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 7,806,520,237.49 9,717,663,659.25 12,276,961,374.42 20,550,691,283.71 Net profit attributable to the listed company’s shareholders -220,602,940.37 315,304,733.00 520,661,894.19 -137,730,436.68 Net profit attributable to the listed company’s shareholders before exceptional gains and losses -333,520,116.21 -316,490,379.26 -843,908,630.71 -873,671,680.77 Net cash generated from/used in operating activities -1,031,223,468.58 -45,143,458.90 -99,506,432.85 1,354,489,888.54 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 2020 2019 2018 Note Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) 2,431,648,255.26 1,202,401,420.41 732,818,574.90 Government subsidies charged to current profit 908,546,202.24 1,204,519,346.40 259,609,022.27 or loss (exclusive of government subsidies given in the Company’s ordinary course of business at fixed quotas or amounts as per the government’s uniform standards) Gain equal to the amount by which investment costs for the Company to obtain subsidiaries, associates and joint ventures are lower than the Company’s enjoyable fair value of identifiable net assets of investees when making investments 220,045,229.63 Gain or loss on assets entrusted to other entities for investment or management 18,476,648.12 71,541,978.85 182,022,653.32 Gain or loss on debt restructuring 1,127,066.94 14,515,006.57 Gain or loss on fair-value changes in held-for-trading and derivative financial assets and liabilities & income from disposal of held-for-trading and derivative financial assets and liabilities and other investments in debt obligations (exclusive of the effective portion of hedges that arise in the Company’s ordinary course of business) 96,316,772.78 49,472,415.17 39,542,461.74 Gain or loss on loan entrustments 64,616,181.90 1,992,676.20 1,389,042.48 Non-operating income and expense other than the above 54,271,037.60 121,189,478.51 73,907,331.00 Other gains and losses that meet the definition of exceptional gain/loss 1,081,111.64 145,586,810.18 17,974,523.98 Less: Income tax effects 544,211,364.67 545,067,993.60 253,497,204.45 Non-controlling interests effects (net of tax) 186,647,854.72 178,394,382.43 67,121,398.75 Total 2,845,224,057.09 2,087,756,756.26 1,206,690,236.12 -- Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items: √ Applicable □ Not applicable Item Amount involved (RMB) Reason Tax rebates on software 30,710,313.50 Government subsidies given in the Company’s ordinary course of business at fixed quotas or amounts as per government’s uniform standards Part III Business Summary I 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 provides multimedia products and services, including colour TVs and Internet TV services, for both domestic and overseas markets. 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. 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. Internet business is based on the intelligent TV terminals sold by our company. It mainly carries out three aspects of business. Firstly, it works with other Internet companies to provide end users with, among other content, video, educational, music, medical and game content to generate earnings. Secondly, it analyses user behaviours and offer certain free, interactive services to increase attractiveness to users, promote its brand and stimulate desire for its hardware products. Finally, it is trying to build an Internet TV platform with tens of millions of users, on which it will profit through commercial and application distribution. This Internet TV business is key to the Company’s Internet-oriented transformation and upgrade to a development model of “hardware + software” and “smart TV + end users”. 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. The Company also optimized the internal R&D, production, procurement, sales, and services processes and integrated the external channel resources to enable channel sharing between the upstream procurement processes and downstream sales processes. By taking advantage of this opportunity, the Company improved the product and sales structure and enhanced the management of online channels. (II) The Industry Trade Business In the industry trade business, the Company benefits from purchasing and processing IC chips, LCD screens, etc., which are raw materials in its traditional core business, from upstream suppliers and selling them to downstream customers. The industry trade business can help the Company establish good relationships with its upstream suppliers and downstream customers, and keep it informed of prices of the materials used in its production 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 water treatment, recycling of renewable resources and the new material of glass ceramic. Water engineering PPP (Public-Private Partnership) projects are undertaken under BOT (Build-Operate-Transfer) or EPC (Energy Performance Contracting) models. 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 primarily develops Micro LED-related products. II Significant Changes in Major Assets 1. Significant Changes in Major Assets Major assets Main reason for significant changes Equity assets No significant change Fixed assets No significant change Intangible assets No significant change Construction in progress The ending amount increased 115.23% from the beginning amount, primarily driven by new environment engineering in progress. 2. Major Assets Overseas □ Applicable √ Not applicable III Core Competitiveness Analysis The Company’s core competitiveness lies in its R&D ability, brand, marketing network and human resources. It has developed a three-level R&D system of “Konka Research Institute-Multimedia R&D Centre-specialized design institutes”, 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 key technologies and about 150 talents The company has a R & D team of more than 20 people, and has introduced two projects of micro led and memory master chip, with more than 100 industry technical talents. 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. Offline channel, the company has more than 40 branches, more than 200 offices, more than 3000 after-sales service stores in all provinces and cities of China, and the marketing and service network is all over the country; online channel, the company has settled in tmall, Jingdong, 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. The company has many years of experience in senior management and executive team. Part IV Operating Performance Discussion and Analysis I Overview In 2020, the Company continued to drive business development through technological innovation, implement the development model of "Technology + Industry + Parks", and foster a development strategy that aims to promote industrial businesses through technological innovation, incubate industrial clusters through the core industrial businesses, drive regional development through the industrial clusters, and nurture the technology and industrial businesses through regional development-enabled resources, while pursuing the mission of developing the Company into an innovation and technology-driven industrial group. For 2020, the Company recorded operating revenue of RMB50.352 billion. Net profit attributable to the Company as the parent stood at RMB478 million, representing a year-on-year rise of 125.26%. What the Company has accomplished in 2020 is summarized as follows: (I) Increased investment in innovation and achieved technological breakthroughs In 2020, following the guiding principle of "independent innovation + technology acquisition," the Company increased investment in R&D, focusing on semiconductor, AI (artificial intelligence) and other sectors. The annual R&D investment was RMB684 million, up 36.57% year-on-year. For the R&D system, the Company established technological research partnerships with notable universities, technology enterprises and research institutions that match our industrial layout. This initiative led to the establishment of several joint laboratories, including the AI IoT Comprehensive Laboratory, 5G Ultra-High-Definition Laboratory, and Guangdong-Hong Kong Big Data Image and Communication Application Joint Laboratory. In terms of talent acquisition, the Company acquired a Micro-LED team of 269 people, attracted 18 doctoral and postdoctoral researchers to join us and partnered with a team of academicians to establish an academician workstation. In terms of R&D achievements, the Company realized the mass production and commercial launch of memory master chips, and the Micro LED project successfully illuminated ultra-small chips and successfully developed 7-inch flexible Micro LED displays. In addition, the programme led by the Company the Research and Industrialization of the Next-generation Internet Intelligent Terminal Key Technology won the Guangdong Provincial Second Prize for Progress in Science and Technology in 2019, the programme Research and Industrialization of Key Quality Management Technologies for Food in Refrigerators won the Third Prize of Anhui Provincial Award for Progress in Science and Technology, and a patent titled Fuzzy Control Method for Rotating Speed of Refrigerator Inverter Compressor won the Henan Provincial Award for Achievement in Science and Technology. (II) Industry fund system that enables the implementation of strategies was established In 2020, the Company established an industry fund system to enable coordinated strategy implementation and industrial development. The initiative has established a series of industry funds, such as Yibin Kanghui Electronic Information Equity Investment Fund, Yancheng Kangyan Information Industry Equity Investment Fund, Chongqing Kangxin Semiconductor Industry Equity Investment Fund, Kunshan Xinjia Emerging Industries Equity Investment Fund and Tongxiang-Wuzhen Jiayu Digital Economy Industry Fund. (III) Business Operation Introduction 1. Industrial Product Division (1) The Multimedia Sub-division In 2020, focusing on reform and innovation, the Multimedia Sub-division continued to drive organization optimization and implemented a series of organization restructuring, sales model re-engineering, cost reduction, and efficiency improvement measures. Centering on the theme of “building high-end brands, localizing overseas resources and diversifying manufacturing," the sub-division implemented several operation optimization and management improvement projects and significantly reduced operating costs, laying a foundation for further reform and continuous operation upgrading. (2) The White Goods Sub-division In 2020, with the acquisition of Changzhou Beko's front loading washing machine production lines, the White Goods Sub-division improved the overall strength of our washing machine product businesses and enriched the portfolio of white goods products (refrigerators, washing machines, and air conditioners) with upgraded development strategies. In addition, with the coordinated operation of the Konka and Frestec brands, the Sub-division made further breakthroughs in brand building, increased the production capacity for air conditioners, focused on strategies for creating hot-selling products, and realized a growth in our white goods businesses. (3) The Environmental Protection Sub-division In 2020, the Environmental Protection Sub-division developed our environmental protection businesses into a more systematic structure that centers on water and solid waste treatment, renewable resources and new materials. Active efforts were also made for expansion into new sectors, such as bio-organisms (Please confirm my translation or clarify the intended message.) and chemical treatment of solid waste and exhaust gas. （未完）  |