深康佳B：2023年半年度报告摘要(英文版)

Stock Code: 000016, 200016 Stock Name: Konka Group-A, Konka Group-B Announcement No. 2023-53Bond Code: 114894, 133003 Bond Name: 21 Konka 01, 21 Konka 02133040, 149987 21 Konka 03, 22 Konka 01133306, 133333 22 Konka 03, 22 Konka 05

KONKA GROUP CO., LTD.INTERIM REPORT 2023 (SUMMARY)

Part I Important NotesThis Summary is based on the full Interim Report. In order for a full understanding of the operatingresults, financial condition and future development planning of the Company, investors are kindlyreminded to read the full text carefully on the media designated by the China Securities RegulatoryCommission (the “CSRC”).All the Company’s directors have attended the Board meeting for the review of this Report and itssummary.Independent auditor’s modified opinion:

□ Applicable √ Not applicable

Board-approved interim cash and/or stock dividend plan for ordinary shareholders:

□ Applicable √ Not applicable

The Company has no interim dividend plan, either in the form of cash or stock.Board-approved interim cash and/or stock dividend plan for preferred shareholders:

□ Applicable √ Not applicable

This Report and its summary have been prepared in both Chinese and English. Should there be anydiscrepancies or misunderstandings between the two versions, the Chinese versions shall prevail.Part II Key Corporate Information

1. Stock Profile

Technology Park, Yuehai Street, NanshanDistrict, Shenzhen, Guangdong Province,China

2. Key Financial Information

Indicate by tick mark whether there is any retrospectively restated datum in the table below.

√ Yes □ No

Reason for retrospective restatement:

Change to accounting policies

Reason for change to accounting policies and correction of accounting errors:

On 30 November 2022, the Ministry of Finance issued Interpretation No. 16 for the AccountingStandards for Business Enterprises, which stipulates the “accounting treatments for deferredincome taxes associated with assets and liabilities arising from a single transaction to which theinitial recognition exemption does not apply”, effective for the Company as of 1 January 2023.For lease liabilities and right-of-use assets recognised at the beginning of the earliest period offinancial statement presentation in which the provision is first implemented that give rise totaxable temporary differences and deductible temporary differences as a result of a singletransaction to which the provision applies, the Company has adjusted the cumulative effect toretained earnings at the beginning of the earliest period of financial statement presentation andother relevant financial statement items in accordance with the said provision and AccountingStandard No. 18 for Business Enterprises—Income Tax.

3. Shareholders and Their Holdings as at the End of the Reporting Period

Unit: share

Number of ordinaryshareholders

4. Change of Controlling Shareholder or Actual Controller in Reporting PeriodChange of the controlling shareholder in the Reporting Period:

□ Applicable √ Not applicable

The controlling shareholder remained the same in the Reporting Period.Change of the actual controller in the Reporting Period:

□ Applicable √ Not applicable

The actual controller remained the same in the Reporting Period.

5. Number of Preferred Shareholders and Shareholdings of Top 10 of Them

□ Applicable √ Not applicable

No preferred shareholders in the Reporting Period.

6. Outstanding Bonds at the Date when this Report Was Authorized for Issue

√ Applicable □ Not applicable

(1) Basic Information of Bonds

(2) Financial Indicators as at the End of the Reporting Period

Part III Significant EventsDuring the Reporting Period, the Company focused on the core businesses of "ConsumerElectronics + Semiconductor", adhered to professional platform-based operation, implemented leanmanagement, advocated long-term value and worked to improve its financial results. Also, effortswere made to strengthen competitiveness in the market and accelerate the transformation from"Konka Electronics" to "Konka Technology". The Company, during the Reporting Period, promotedbusiness restructuring by optimising part of non-core business which failed to coordinate with themain business and had low gross margin. The scale of the industry trade business droppedsignificantly year-on-year, resulting in a certain decrease of the Company's operating revenue.Affected by the following factors, the Company recorded a net loss attributable to its shareholdersin the first half of 2023:

(I) The gross margin of the colour TV business declined year-on-year, due to shrunken industryscale, increased cost of the supply chain, the product sales structure in the adjustment phase.

1. The domestic scale of the colour TV industry kept decreasing. The recovery of the domestic scaleof the colour TV industry in the first half of 2023 did not meet expectations. Due to the decreasedmarket scale, both the revenue and total gross margin of the Company's colour TV business inChina fell year-on-year in the first half of 2023.

2. The increased cost of the upstream supply chain led to a decrease in the Company's gross margin

in the colour TV OEM business: The first half of 2023 witnessed an increase in the income scale ofthe Company's colour TV OEM business. Nevertheless, the orders delivered in the period sufferedfrom decreased gross margin, due to the increased cost of the upstream supply chain, which resultedin a decrease in the total gross margin of the Company's OEM business.

3. The product sales structure of colour TVs is in the adjustment phase. In order to keep up withmarket demands, for the colour TV business, the Company is gradually adjusting its productplanning and sales strategies toward highly frequent demands, such as big screens, high fresh rates,and new display technologies. (Big screens are bigger than 65 inches (inclusive). High fresh ratesexceed 120Hz (inclusive). Examples of new display technologies are Micro LEDs and Mini LEDs.)Even so, the sales scale and total gross margin of the colour TV business were influenced, as newcolour TV products were in the introduction phase and marketing strategies were in the adjustmentphase in the first half of 2023.(II) The Company's semiconductor business was still at the initial phase of industrialisation duringthe Reporting Period. In other words, the output did not meet the requirements in scale and benefits,which affected the Company's overall operating profit.(III) Income was gained from the Company's projects in the industrial parks in Shangrao City,Jiangxi Province, Shaoxing City, Zhejiang Province, and Yibin City, Sichuan Province in the firsthalf of 2023. The Company reduced its business in industrial parks in this period, in combination ofits development strategies and the macro-economic environment. Therefore, the relevant incomedecreased year-on-year.

The Board of DirectorsKonka Group Co., Ltd.

25 August 2023