某公司某年度中期财务报告英.doc

KONKA GROUP CO LTD SEMI ANNUAL REPORT 2002 Konka Group Co Ltd Chairman of the Board Ren Kelei August 23 2002 CONTENTS IMPORTANT NOTICE 1 I COMPANY PROFILE 1 II MAJOR FINANCIAL DATA AND INDEXES 1 III CHANGE IN SHARE CAPITAL AND PARTICULARS ABOUT SHARES HELD BY MAIN SHAREHOLDERS 1 IV DIRECTORS SUPERVISORS AND SENIOR EXECUTIVES 2 V EXECUTIVE STATEMENTS 2 I Operational Results and Financial Highlights 2 II Business Review 3 III Investments 4 VI Plan for the Second Half Year 2002 4 VI SIGNIFICANT EVENTS 5 I Corporate Governance 5 II Distribution Transferring or Issuance 5 III Significant Lawsuits and Arbitration 5 IV Significant purchase Sale or Disposal of Assets 6 V Material Correlative Transactions 6 VI Significant Contracts 8 VII Commitments 8 VIII About Certified Public Accountants 8 IX Other Significant Events 8 X Index of Information about Other Significant Events 8 VII FINANCIAL STATEMENTS ATTACHED 9 VIII DOCUMENTS FOR REFERENCE 9 ATTACHMENT FINACIAL REPORT Un audited 10 IMPORTANT NOTICE The Board of Directors of Konka Group Co Ltd hereinafter refereed to as the Company and all directors individually and collectively accept responsibility for the correctness accuracy and completeness of the contents of this report and confirm that there are no material omissions nor errors which would render any statement misleading The semi annual financial report of the Company has not been audited This report has been prepared in Chinese version and English version respectively In the event of any discrepancy between the two versions the Chinese version will prevail Chairman of the Board Ren Kelei I COMPANY PROFILE 1 Legal Name of the Company In Chinese 康佳集团股份有限公司 In English KONKA GROUP CO LTD Abbr in English KONKA 2 Registered Office Address Overseas Chinese Town Nanshan District Shenzhen Post Code 518053 Internet Website of the Company E mail szkonka szkonkas 3 Legal Representative Mr Ren Kelei Chairman of the Board 4 Secretary of Board of Directors Mr Chen Xuri Liaison Address Konka Group Co Ltd Overseas Chinese Town Nanshan District Shenzhen Liaison Tel 86 755 26608866 Fax 86 755 26600082 E mail chenxuri Authorized Representative in Charge of Securities Affairs Mr Chen Xuri and Mr Yang Guobin 5 Newspapers Chosen for Disclosing the Information of the Company China Securities Securities Times and Hong Kong Ta Kung Pao Internet Website Designated by CSRC for Publishing the Semi annual Report The Place Where the Semi annual Report is Prepared and Placed Secretariat of Board of Directors 6 Stock Exchange Listed with Shenzhen Stock Exchange Short Form of the Stock SHEN KONKA A SHEN KONKA B Stock Code 000016 200016 II MAJOR FINANCIAL DATA AND INDEXES Unit RMB ItemsJan 1 to Jun 30 2002Jan 1 to Jun 30 2001 Net Profit24 199 186 01 190 959 457 29 Net profit after deducting non recurring gains and losses 32 040 299 94 187 293 494 23 Fully diluted earnings per share 0 0402 0 3172 Net cash flows per share arising from operating activities 0 64200 0481 Fully diluted return on equity 0 8252 5 5794 Weighted average return on equity after deducting non recurring gains and losses 1 0926 5 4722 ItemsJun 30 2002Dec 31 2002 Net assets per share 4 8713 4 8073 Net assets per share after adjustment 4 7553 4 5859 Shareholders equity excluding minority interests 2 932 467 898 992 893 912 961 21 The total amount of non recurring gains and losses is RMB 7 841 113 93 and item involved are as following ItemAmount RMB Non operating income1 522 941 40 Non operating expenditure 14 017 196 46 Subsidy income1 946 662 27 Goodwill as included in 158 490 49 Income of transferring share investment Income of transferring equity investment 2 864 969 35 Total 7 841 113 93 III CHANGE IN SHARE CAPITAL AND PARTICULARS ABOUT SHARES HELD BY MAIN SHAREHOLDERS 1 Particulars about change in structure of share capital in the report period In the report period the structure of share capital of the Company remained unchanged 2 Total shareholders at the end of the report period By the end of the report period the Company has totally 165 693 shareholders including 149 798 shareholders of A share and 15 895 shareholders of B share 3 Particulars about shares held by main shareholders No Name of Shareholders Share holding Increase decrease Proportion Types 01Overseas Chinese Town Group Company174 949 746 29 06 Domestic juristic person s shares A share 02Overseas Chinese Town HK Co Ltd 76 511 872 10 191 46612 71 Foreign share in circulation B share 03 Hong Kong China Travel Service Group Co Ltd 46 022 116 335 5007 64 Foreign share in circulation B share 04NOMURA TB NOMURA ITM 2 450 000 1 077 6000 41 Foreign share in circulation B share 05 TOYO SECURITIES ASIA LIMITED A C CLIENT 2 364 168 4 7390 39 Foreign share in circulation B share 06XIN MING 1 244 907 1 244 9070 21 Foreign share in circulation B share 07 LONGYUAN SECURITIES INVESTMENT FUND 1 220 663 1 220 6630 20 Domestic share in circulation A share 08 CHINA HI TECH INVESTMENT GROUP CO 1 000 017 1 000 0000 17 Domestic share in circulation A share 09 HANDING SECURITIES INVESTMENT FUND 1 000 000 1 000 0170 17 Domestic share in circulation A share 10NATO SECURITIES CO LTD 802 464 191 5000 13 Foreign share in circulation B share Note Among the top ten shareholders Overseas Chinese Town HK Co Ltd is a foreign wholly owned subsidiary company of Overseas Chinese Town Group Company OCT Group There existed no associated relationship among the other circulation shareholders IV DIRECTORS SUPERVISORS AND SENIOR EXECUTIVES 1 Particulars about shares held by directors supervisors and senior executives In the report period the shares of the Company held by directors supervisors and senior executives remained unchanged 2 Change in directors supervisors and senior executives 1 As resolved in the 6th meeting of the 4th Board of Directors held on April 9 2002 Lin Hanhui was dismissed from the post of deputy general manager 2 As resolved in the 7th meeting of the 4th Board of Directors held on April 26 2002 Hou Songrong was engaged as general manager in place of Liang Rong 3 As resolved in Shareholders General Meeting 2001 held on May 13 2002 Chen Weirong resigned from the post of director in the meantime Ni Zheng was engaged as director of the 4th Board of Directors Xiao Zhuoji Ye Wu and Ma Liguang were engaged as independent director of the Company respectively The said four new directors didn t hold the shares of the Company V EXECUTIVE STATEMENTS I Operational Results and Financial Highlights Increase decrease of main financial data compared to the same period last year Unit RMB Items Amount at period end Amount at period begin Increase decrease Total assets 6 807 019 274 39 7 211 736 823 48 5 60 Shareholders equity 2 932 467 898 99 2 893 912 961 21 1 35 ItemsJan Jun 2002Jan Jun 2002 Increase decrease Income from main business lines 3 805 488 465 253 209 799 541 2518 56 Profit from main business lines594 507 414 55515 613 282 98 15 30 Net profit 24 199 186 01 190 959 457 29 Net increase of cash and cash equivalents 140 394 178 15 556 816 355 51 74 79 Reasons for the changes 1 Total assets decreased by 5 60 compared to the beginning of the report period mainly due to the reason that the inventory decreased and the financial statement of Shenzhen Huali Packing Trade Co Ltd and Shanghai Huali Packing Trade Co Ltd were not consolidated as a result amount of fixed assets in the report period decreased compared to the same period last year 2 Income from main business lines increased by 18 56 compared to the same period last year mainly due to the great increase of mobile phone business 3 Profit from main business lines increased by 15 30 mainly due to the increase of profit from mobile phone business 4 Net increase of cash and cash equivalents increased by 74 79 mainly due to the reason that sales income in the report period increased by nearly RMB0 6 billion II Business Review The Company is principally engaged in the production and sales of color TV digital mobile phone LCD screen and internet relevant products concurrently engaged in the production and sales of refrigerator air conditioner washing machine as well as the supported products including high frequency connector mould molding packaging etc The Company is belonging to electronic manufacture and communication manufacture industry 1 The composing of income and profit from main business lines In the first half year the Company realized sales income of RMB 3 8 billion fulfilled 52 4 of full year target increased by 18 6 compared to the same period last year a net profit of RMB 2 42 million earnings per share of RMB 0 0402 It is estimated that the Company will maintain the same profit level in the third quarter and second half year 2002 In the first half year the electric appliance industry presented recovery color TV business realized sales income of RMB 3 1 billion taking 81 37 of main business lines and sales cost of RMB 2 6 billion among which production and sales of domestically sold color TV respectively reached 2 1 million sets and 2 3 million sets increased by 59 35 and 34 9 respectively Production and sales of overseas sold color TV reached 231 2 thousand sets and 190 7 thousand sets According to the figure of Beijing Zhongyikang Market Supervisory and Forecasting Company in the first half year 2002 the domestic market share of Konka Color TV was about 12 3 among the top three China mobile phone market grows rapidly in the first half year the mobile phone business of the Company realized sales income of RMB 0 61 billion taking 16 08 of main business lines with sales cost of RMB 0 51 billion Mobile phone business realized a net profit of RMB2 2 million taking 92 77 of the net profit of the Company Production and sales of mobile phones reached 593 6 thousand sets and 559 5 thousand sets respectively increased by 106 1 and 114 2 respectively Mobile phone really became the second most competitive product of the Company and new source of economy and profit increase According to the data of Germany GFK Company Sino Market Supervisory and Forecasting Company domestic market share of Konka mobile phone was about 1 2 Main work in first half year According to Business Plan for 2002 the Company concentrated on developing profit resources saving costs improving administration and reinforcing cooperation accelerated the adjustment and changes in all aspects The business situation was getting better step by step and all the business lines presented a good tendency in development 1 The Company kept on improving administration ability and operation efficiency reinforcing administration of costs and expenses further improved the inventory and finished product velocity In the first half year 2002 sales expenses administrative expenses and financial expenses decreased by 8 54 35 58 and 60 91 respectively compared to the same period last year The net cash flows arising from operational activities r amounted to RMB 0 39 billion assets and financial status of the Company presented upward 2 The Company took effective measures to accelerate business reorganization and got great achievements in color TV mobile phone and overseas businesses Inventory of color TV was reduced by nearly 36 sales personnel reduced by over 16 even kept profit every single month after entering the slump season of color TV Mobile phone business grew quickly and became the main resource of profit after the enlargement of new product development and market promotion and foster of key market and branches Overseas business realized the plan for profit and stood out in the expansion of CEM businesses The overseas sales orders presented a good tendency 3 The Company established IT companies actively sought for and developed new businesses At present the product planning and channel construction of IT businesses have been started among which the LCD display has formed a series the flat board PC of national brand will come into market in batches in the second half year III Investments Regarding the cooperative operation of real estate project please refer to Material Correlative Transactions for details VI Plan for the Second Half Year 2002 In the second half year 2002 the Company will be committed to renovation and improvement of administration based on the business idea of No development no survival no system no sustainability strive to lay a solid base for the more rapid development of the next year The Company will focus on the following aspects 1 To reinforce the impetus role of the D 2 The financial statement carried with signatures and seals of the legal representative finance controller and accountants in charge 3 All the originals of the Company s documents and master copies of public notices that were publicly disclosed in the designated newspapers of CSRC in the report year 4 The Articles of Association 5 Other relevant materials Board of Directors of KONKA GROUP CO LTD August 23 2002 ATTACHMENT FINACIAL REPORT Un audited Konka Group Co Ltd Incorporated in the People s Republic of China Consolidated income statement For the half year ended Jun 30 2002 NoteJan Jun 2002Jan Jun 2001 RMB 000RMB 000 Turnover53 805 488 3 209 800 Cost of sales 3 210 311 2 693 747 Gross profit595 177 516 053 Other revenue17 579 1 085 926 Distribution costs 434 744 475 320 Administrative expenses 117 875 139 694 Other operating expenses 670 1 123 708 Profit from operating activities59 467 136 743 Finance costs 19 694 50 384 Share of profit of associated companies111 203 Profit before taxation39 884 187 330 Taxation6 12 966 2 381 Profit before minority interests26 918 189 711 Share of profit of minority interests 1 220 1 248 Net profit in the interim period of 2002 25 698 190 959 Retained profit at the year beginning 653 292 68 622 Profit attributable to shareholders 627 594 122 337 Profit distribution Transferring into reserves Dividends Issue of bonus shares Retained profit at end of the interim period 627 594 122 337 Earnings loss per share basic 7RMB 0 04RMB 0 32 Konka Group Co Ltd Incorporated in the People s Republic of China Consolidated statement of recognized gains and losses For the half year ended Jun 30 2002 NoteJan Jun 2002Jan Jun 2001 RMB 000RMB 000 Exchange differences arising on foreign currencies 182 355 180 Net profit not recognized in the financial statement 2 355 180 Net profit for the year25 698 190 959 28 053 190 779 Konka Group Co Ltd Incorporated in the People s Republic of China Consolidated Balance Sheet For the half year ended Jun 30 2002 NoteJun 30 2002Dec 31 2001 RMB 000RMB 000 Non current assets Fixed assets81 406 0421 575 761 Goodwill917 27617 435 Intangible assets5 7657 157 Interests in associates1035 84941 332 Other investments11377 290112 290 1 842 2221 753 975 Current assets4 928 9165 433 116 Bank balances and cash854 463994 857 Inventories122 491 1562 825 932 Properties held for sale3 9443 944 Note receivables935 794769 525 Account receivables13416 629528 540 Prepayments deposits and other receivables14226 930310 318 4 928 9165 433 116 Current liabilities 3 594 898 3 917 017 Short term bank loans15 550 000 816 000 Note payables 1 417 763 1 579 358 Account payables 953 481 818 972 Other payables and accrued expenses 673 654 702 687 3 594 898 3 917 017 Net current assets1 334 0181 516 099 Total assets less current liabilities3 176 2403 270 074 Consolidated Balance Sheet Con For the half year ended Jun 30 2002 NotesJun 30 2002Dec 31 2001 RMB 000RMB 000 Total assets less current liabilities3 176 2403 270 074 Long term account receivables of financing lease Long term bank loans16 55 127 Deferred income 20 984 34 090 Other long term liabilities 24 092 10 483 45 076 99 700 Minority interests 206 940 260 490 2 924 2242 909 884 Shareholders equity Share capital17601 986601 986 Reserves 182 322 2382 303 954 Shareholders equity2 924 2242 905 940 The accompanying notes are an integral part of these consolidated financial statements Financial consolidated statement has been approved by the Board of Directors dated Aug 23 2002 Konka Group Co Ltd Incorporated in the People s Republic of China Consolidated Cash Flow Statement For the half year ended Jun 30 2002 Jan Jun 2002Jan Jun 2001 RMB 000RMB 000 Cash flow from operating activities Operating profit25 698 190 959 Adjustment items Depreciation of fixed assets73 056 70 641 Amortization of intangible assets5 808 2 011 Amortization of deferred expenditure 17 368 27 386 Loss on rejection or sale of fixed assets 3 257 4 392 Loss on disposal of properties held for sale 285 Interests income 6 361 13 754 Balance difference from foreign currency exchange 145 180 Increase decrease in account receivables150 071 368 603 Increase decrease in inventories324 714 929 645 Decrease in account payables 220 070 1 151 674 Income tax paid12 966 13 727 Net cash inflow from operating activities386 362 33 029 Investing reward and financing expenses Interests received13 754 Interests paid 16 329 40 029 Dividend paid 57 611 Cash outflow from investing reward and financing expenses 16 329 83 886 Investing activities Purchases of fixed assets 36 522 80 773 Proceeds from disposal of fixed assets9 302 7 068 Deferred expenses paid 37 856 Net cash inflow expenditure from acquisition of associates 34 0928 709 Investment in associated company 265 000 7 350 Purchases of long term investment 30 7 407 Net cash outflow from investing activities 258 158 117 609 Net cash outflow before financing activities111 875 168 466 Consolidated Cash Flows Statement Con For the half year ended Jun 30 2002 Jan Jun 2002Jan Jun 2001 RMB 000RMB 000 Financing activities Additional bank loans28 250 445 259 Repayment for bank loans 279 716 819 576 Expenditure of financing lease 8 7 122 Contribution from minority shareholders on formation of new subsidiary 5 500 Dividend paid to minority shareholders 795 12 411 Net cash inflow from financing activities 252 269 388 350 Cash and cash equivalents at beginning of the period994 857 1 426 065 Cash and cash equivalents at end of the per