StockCode:000016,200016 StockName:KonkaA,KonkaB AnnouncementNo.:2017-43 KONKAGROUPCO.,LTD. SEMI-ANNUALREPORT2017(ABSTRACT) IImportantNotes ThisAbstractisbasedonthefulltextoftheSemi-AnnualReport.Inorderforafullunderstanding oftheoperating results, financialcondition and futuredevelopment planningof theCompany, investorsarekindlyremindedtoreadthefulltextcarefullyonthemediadesignatedbytheChina SecuritiesRegulatoryCommission(the“CSRC”). ObjectionsagainstthisReportraisedbythedirectors,supervisorsandseniormanagement: Name Officetitle Objectionandreason Statement:Exceptforthefollowingdirectors,alltheotherdirectorsattendedinpersontheboardmeetingforthereviewofthisReport. Name Officetitle Reasonfornotattendingin Proxyperson ThisAbstracthasbeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesor misunderstandingsbetweenthetwoversions,theChineseversionshallprevail. Modifiedauditor’sopinion: □Applicable√Notapplicable Proposalfor profit distribution to orconverting capital reserveinto share capital forcommon shareholdersfortheReportingPeriod,whichhasbeenconsideredandapprovedbytheBoard: □Applicable√Notapplicable TheCompanyplansnottodistributecashdividendsorbonussharesorconvertcapitalreserveinto sharecapital. ProposalforprofitdistributiontopreferenceshareholdersfortheReportingPeriod,whichhasbeen consideredandapprovedbytheBoard: □Applicable√Notapplicable IICompanyProfile 1.StockProfile Stockname KonkaA,KonkaB Stockcode 000016,200016 Stockexchange ShenzhenStockExchange Changedstockname(ifany) N/A Contactinformation BoardSecretary SecuritiesRepresentative Name WuYongjun MiaoLeiqiang BoardSecretariat,24/F,KonkaR&DCenter, BoardSecretariat,24/F,KonkaR&DCenter, 28 KejiSouth TwelfthRoad,Scienceand 28 Keji SouthTwelfth Road,Science and Officeaddress Technology Park, Yuehai Street, Nanshan Technology Park, Yuehai Street, Nanshan District, Shenzhen, Guangdong Province, District, Shenzhen, Guangdong Province, China China Tel. 0755-26608866 0755-26608866 E-mail szkonka@konka.com szkonka@konka.com 2.KeyConsolidatedOperatingResults IndicatebytickmarkwhethertheCompanyneedstoretroactivelyrestateanyofitsaccountingdata. □Yes√No ReportingPeriod Sameperiodoflastyear +/-(%) Operatingrevenues(RMB) 11,405,965,979.43 8,609,080,822.24 32.49% Netprofitattributabletoshareholdersof 30,871,267.86 12,834,736.76 140.53% theCompany(RMB) Netprofitattributabletoshareholdersof theCompanybeforeexceptionalgains -44,456,212.17 -28,736,147.20 -54.70% andlosses(RMB) Net cash from operating activities -2,264,014,704.88 -125,542,056.42 -1,703.39% (RMB)Basicearningspershare(RMB/share) 0.0128 0.0053 141.51%Dilutedearningspershare(RMB/share) 0.0128 0.0053 141.51%Weightedaveragereturnonequity(%) 1.06% 0.46% 0.60% EndofReportingPeriod Endoflastyear +/-(%)Totalassets(RMB) 20,666,059,935.37 17,243,119,597.97 19.85%Netassetsattributabletoshareholdersof 2,928,936,565.96 2,901,481,607.04 0.95%theCompany(RMB)3.ShareholdersandTheirHoldingsatPeriod-End Unit:shareTotal number of common 115,362 Total number of preference shareholders with 0shareholdersatperiod-end resumedvotingrightsatperiod-end(ifany) Top10shareholders Natureof Shareholdi Totalshares Restricted Pledgedorfrozen Nameofshareholder shareholder ng held sharesheld shares percentage Status NumberOCTENTERPRISESCO. State-owned 21.75% 523,746,932 0corporation CITICSECURITIES Foreign BROKERAG(HK)CO., corporation 7.56% 182,100,202 0 LIMITEDHOLYTIMEGROUPLIMITED Foreign 2.33% 56,049,824 0corporation GUOYUANSECURITIES Foreign 2.27% 54,755,145 0 BROKERAGE(HK)CO., LIMITED corporation GAOLINGFUND,L.P. Foreign 2.19% 52,801,250 0 corporation CHINAMERCHANTS State-owned 0.94% 22,662,120 0 SECURITIES(HK)CO.,LTD. corporation NAMNGAI Foreign 0.94% 22,535,240 0 individual NANHUAFUTURESCO., LIMITED-NANHUAFUTURES Other 0.86% 20,713,937 0 NO.5SILVERLEAFASSET MANAGEMENTPLAN YUNNANINTERNATIONAL TRUSTCO.,LTD.－JULI Other 0.84% 20,216,860 0 SINGLEFUNDTRUSTPLAN NO.48 CSICAPITALMANAGEMENT Foreign 0.83% 20,050,928 0 LIMITED corporation ThewhollyownedsubsidiaryJialongInvestmentCo.,Ltd.ofthefirstmajorityshareholder Overseas ChineseTownEnterprises Co.respectively holdthe commonshare of the Related or acting-in-concert Companyof180,001,110sharesand18,360,000sharesthroughCITICSecuritiesBrokerage partiesamongshareholdersabove (HK)Co.,LimitedandChinaMerchantsSecurities(HK)Co.,Ltd.,andJialongInvestment Co.,Ltd.andOverseasChineseTownEnterprisesCo.werepersonsactinginconcert;the Companydoesnotknowwhethertheothershareholdersarerelatedpartiesandwhetherthey areacting-in-concertparties. Shareholders conducting N/A securitiesmargintrading 4.ChangeofControllingShareholderorActualControllerinReportingPeriod ChangeofthecontrollingshareholderintheReportingPeriod: □Applicable√Notapplicable ThecontrollingshareholderremainedthesameintheReportingPeriod. ChangeoftheactualcontrollerintheReportingPeriod: □Applicable√Notapplicable TheactualcontrollerremainedthesameintheReportingPeriod. 5.NumberofPreferenceShareholdersandShareholdingsofTop10ofThem □Applicable√Notapplicable NopreferenceshareholdersintheReportingPeriod. 6.Corporatebonds DoestheCompanyhaveanycorporatebondspubliclyofferedandlistedonthestockexchange, whichwereunduebeforetheapprovaldateofthisReportorwereduebutcouldnotberedeemedin fullNo.IIIPerformanceDiscussionandAnalysis 1.PerformanceReviewforReportingPeriod IstheCompanysubjecttoanydisclosurerequirementsforspecialindustries No.FortheReportingPeriod,theCompanyachieved,onaconsolidatedbasis,operatingrevenuesofRMB11.406billion,up32.49%comparedtothesameperiodoflastyear;netprofitattributabletotheCompany’sshareholdersofRMB30.8713million,representingayear-on-yearriseof140.53%;andearningspershare(EPS)ofRMB0.0128.In the Reporting Period, the Company proactively promoted reform in its system and keptintegratingresourcestoacceleratetransformation.Asaresult,itseffortshavebeenrewardedbyimproved earnings.The workthat theCompany has accomplished in theReporting Period isdetailedasfollows:(1)IntheReportingPeriod,theCompanycontinuedtopromotereforminitssystem.Newseniormanagementhasbeenhiredthroughanopenrecruitmentinthefirstquarterofthisyear.Meanwhile,certainbusinessunitsarecarryingoutamarket-orientedreforminasteadymanner.(2)IntheReportingPeriod,theCompanymadegooduseofitspartners’resourceadvantages.TheCompanyandChinaMobilehavejointlylaunchedtheMigu-KonkaTV.Inaddition,theCompanyhasbecome atop sponsorof theJiangsuSuningFootball Club.Thesemoves willhelpsetupwin-wincooperations. Inaddition,theCompanyhassigned onJuly28, 2017to bean officialpartnerofLaLigainChina,whichwillbringnewvitalitytotheCompany’sbrand.(3)TheReportingPeriodsawasignificantyear-on-yearincreaseinboththeoperatingrevenuesandnetprofitgeneratedbytheCompany’ssmartTVoperationbusiness.Moreover,theCompanyhasdevelopedonits ownaseriesof newproductsincluding E-learning,E-shopping,KVideoandWorld of Games, increasing attractiveness to users and the soft power in brand, as well aspromotingtheupgradeinitsmainbusinessfromatraditionalmodelofprofitingthroughaddingvalueonhardwaretoanewmodelof“hardware+software”and“smartTV+endusers”.(4)IntheReportingPeriod,theCompanyintegratedthedevelopment,productionandsupplychainsystemsand optimizedtheproductstructure,tryingto providemorecompetitiveproducts. Theincreasinglyfierce market competition and therising prices ofraw materials, however, ledtodecreasedgross profitmarginsandlossesin certainoftheCompany’s mainbusinesssegments(includingcolorTVsandwhitegoods).(5) Exceptional gains and losseshave an effect of RMB75.3275million on net profitin theReportingPeriod.2.MattersRelatedtoFinancialReport (1) Changes in Accounting Policies, Accounting Estimations and Measurement Methods ComparedtoLastAccountingPeriod □Applicable√Notapplicable Nosuchcases. (2)RetroactiveRestatementsduetoCorrectionofSignificantAccountingErrorsinReporting Period□Applicable√NotapplicableNosuchcases.(3)ChangesinScopeofConsolidated FinancialStatementsComparedtoLastAccountingPeriod√Applicable□Notapplicable① Anhui Konka Electronic Co., Ltd., one of the Company’s subsidiaries, incorporatedwholly-owned subsidiary Anhui Kangzhi TradeCo., Ltd. in Anhui on March 8, 2017 with aregisteredcapitalofRMB5million.Asofthebalancesheetdate,themoneywasunpaidbyAnhuiKonkaElectronic.FortheCompanyhascontroloverAnhuiKangzhiTrade,ithasbeenincludedintheconsolidationscopesinceMarch8,2017.② AnhuiKonkaTongchuangHouseholdAppliancesCo.,Ltd.,oneoftheCompany’ssubsidiaries,mergedonMay17,2017itswholly-ownedsubsidiaryAnhuiKonkaHouseholdAppliancesCo.,Ltd.,whichhasbeencancelledwiththeindustrialandcommercialadministrationonthatday. TheBoardofDirectors KonkaGroupCo.,Ltd. August24,2017