2016-04-07-深交所-深康佳Ｂ_2015年年度报告（英文版）_262页_1mb

KONKA GROUP CO., LTD. 2015 Annual Report Summary

Core Content Overview

The 2015 Annual Report of Konka Group Co., Ltd. outlines the company's financial performance, business operations, strategic directions, and key risks. The report is issued in both Chinese and English, with the Chinese version taking precedence in case of discrepancies. It also includes information about the company's governance, financial highlights, and significant events during the year.

Key Statements and Terms

• The Board of Directors and management affirm that the report is factual, accurate, and complete.
• The company will not distribute cash dividends or bonus shares in 2015.
• The company designates Securities Times, Ta Kung Pao (HK), and www.cninfo.com.cn for information disclosure.
• The company has subsidiaries such as Shenzhen Konka Telecommunications Technology, Shenzhen Konka Precision Mold, and Konka America, Inc., among others.

Company Profile & Financial Highlights

Basic Information

• Stock Abbreviation: Konka A, Konka B
• Stock Code: 000016, 200016
• Stock Exchange: Shenzhen Stock Exchange
• Company Name (Chinese): 康佳集团股份有限公司
• Company Name (English): KONKA GROUP CO., LTD.
• Legal Representative: Liu Fengxi
• Registered Address: 15-24/F, Konka R&D Center, 28 Keji South Twelfth Road, Nanshan District, Shenzhen
• ZIP Code: 518057
• Company Website: www.konka.com
• Email: szkonka@konka.com

Contact Information

• Company Secretary: Wu Yongjun
• Representative for Securities Affairs: Miao Leiqiang
• Contact Address: Same as registered address
• Phone: 0755-26608866
• Fax: 0755-26601139

Financial Highlights

Annual Financial Data (RMB Yuan)

• Operating Revenues: 18,395,177,035.98 (down 5.29% YoY)
• Net Profits Attributable to Shareholders: -1,256,819,314.51 (down 2,488.32% YoY)
• Net Cash Flows from Operating Activities: 1,289,600,482.66 (up 301.38% YoY)
• Basic EPS: -0.52 (down 2,700.00% YoY)
• Diluted EPS: -0.52 (down 2,700.00% YoY)
• Weighted Average ROE: -36.30% (down 37.58% YoY)
• Total Assets: 14,250,367,548.28 (down 15.07% YoY)
• Net Assets Attributable to Shareholders: 2,814,382,870.81 (down 31.41% YoY)

Business Profile

Main Business Segments

1. Color TVs: Sold domestically and internationally through B2B and B2C channels. Profits come from the margin between costs and selling prices.
2. Mobile Phones: Domestic sales mainly through telecom operator channels, with a revival of B2B and B2C retail sales since August 2015. Profits come from product margin and value-added services.
3. White Goods: Includes refrigerators, washing machines, air conditioners, etc. Sold domestically through B2B and B2C, with a focus on e-commerce and internet-based strategies.

Significant Changes in Main Assets

• Equity Assets: Decreased by 47.47% due to the recovery of investment in Shanghai Konka Green Science and Technology Co., Ltd.
• Construction in Progress: Increased by 30.23% due to higher investment in the Kangsheng Hotel project.

Management Discussion & Analysis

Summary

• The company implemented its Internet strategy, increasing the proportion of smart TVs in total sales.
• However, it recorded a significant deficit due to:
  • Returning RMB89.96 million in government subsidies for energy-saving appliances.
  • Exchange rate losses from the RMB depreciation against the US dollar, causing a RMB229 million loss.
  • Management changes affecting product planning and operational efficiency.
  • Price wars impacting profitability.

Business Highlights

• Color TV Business: Improved manufacturing efficiency and product quality. Domestic sales showed improvement in the fourth quarter.
• Overseas Business: Expanded into new markets, increased sales, and improved gross margins.
• Handset Business: Launched new products and formed a mobile internet technology company, enhancing domestic and overseas operations.
• White Goods Business: Focused on e-commerce and internet thinking, achieving growth despite industry challenges.

Revenue and Cost Breakdown

Operating Revenues by Segment

• Electronics Industry: 16,882,508,201.20 (91.78% of total revenue, down 10.65% YoY)
• Others: 1,512,668,834.78 (8.22% of total revenue, up 186.43% YoY)

Operating Revenues by Product

• Color TVs: 12,590,931,785.71 (68.45% of total revenue, down 14.33% YoY)
• Mobile Phones: 790,942,197.54 (4.30% of total revenue, down 50.20% YoY)
• White Goods: 1,569,786,771.56 (8.53% of total revenue, up 22.90% YoY)
• Others: 3,443,516,281.17 (18.72% of total revenue, up 85.06% YoY)

Operating Revenues by Area

• Domestic Sales: 12,466,005,969.45 (67.77% of total revenue, down 15.26% YoY)
• Overseas Sales: 5,929,171,066.53 (32.23% of total revenue, up 25.82% YoY)

Extraordinary Gains and Losses

• Total Extraordinary Gains and Losses: -126,819,668.57 (RMB Yuan)

• Key Items:

  • Gains/Losses on disposal of non-current assets: -16,096,434.80
  • Governmental grants: 71,499,330.11
  • Investment gains/losses: 20,419,318.35
  • Asset impairment provisions: -144,808,654.70
  • Non-operating income and expense: -104,311,044.28
  • Other items: -419,240.74

• Tax Rebates on Software: 67,476,494.60 (classified as non-extraordinary due to being closely related to normal operations)

Conclusion

The 2015 annual report highlights the challenges Konka Group faced, including significant financial losses, management changes, and exchange rate fluctuations. Despite these issues, the company made strategic adjustments, improved operations, and expanded its overseas business. It emphasized R&D, marketing, and manufacturing as key competitive advantages and outlined plans for future development in intelligent products and internet technology.