As a result of a former senior executive being investigated and combined with an expected deficit of billions in performance, China’s long-established home appliance company, Konka Group Co., Ltd. (Shenzhen Konka Group A), is currently facing a dual crisis in operations and governance.
On the first trading day of February, Shenzhen Konka Group A opened with a one-character limit-down and closed at 4.48 yuan per share.
On January 29, the official notice from the government of Huizhou, Guangdong Province stated that Zhou Bin, the former Party Secretary and Vice Chairman of the Board of Directors of Konka Group Co., Ltd., and Li Hongtao, the former Vice President, are under investigation for serious disciplinary and legal violations.
Public records show that Zhou Bin became the CEO of Konka Group in 2017 and was elected as Vice Chairman of the Board of Directors in 2024, overseeing the work of the Board of Directors.
Just a month before the two executives were investigated, on December 26, 2025, Shenzhen Konka Group A received an administrative supervision decision from the Shenzhen Securities Regulatory Bureau and a regulatory letter from the Shenzhen Stock Exchange. It was stated that the company’s 2018 interim report disclosure was inaccurate. The then Chairman Liu Fengxi, then General Manager Zhou Bin, and then CFO Li Chunlei were issued warning letters.
In terms of performance, on January 30, Shenzhen Konka Group A released its performance forecast for 2025, with a projected net loss attributable to shareholders of the listed company ranging from 12.581 billion yuan to 15.573 billion yuan, and the net assets attributable to shareholders of the listed company to be between -5.334 billion yuan and -8.001 billion yuan. This indicates that the company may incur losses for four consecutive years, and its stock trading may face delisting risk warnings.
Furthermore, in 2025, the company’s consumer electronics business was affected by insufficient product competitiveness, leading to a decrease in operating income and the inability of gross profit to cover expenses, resulting in continued losses in the consumer electronics business.
As a long-established giant in the home appliance industry, Shenzhen Konka Group A has seen continuous decline in performance in recent years with no signs of improvement. From a revenue perspective, the company entered a downward trend after reaching a peak of 55.119 billion yuan in 2019, dropping below the 20 billion yuan mark to 17.849 billion yuan in 2023, and further plummeting to just 11.115 billion yuan in 2024.
In terms of net profit performance, Shenzhen Konka Group A incurred losses of 1.47 billion yuan, 2.164 billion yuan, and 3.296 billion yuan respectively in 2022, 2023, and 2024, with the amount of losses continuously expanding, totaling 6.93 billion yuan over the three years. Currently, the company’s net losses in 2025 have expanded to over a hundred billion yuan.
In fact, the company’s operating income has been declining since 2020, reflecting that the adjusted net profit attributable to the parent company has been negative for 14 consecutive years from 2011 to 2024. As a result, the company has been gradually shrinking and exiting non-profitable businesses such as industrial and environmental protection since 2022. However, due to intensified market competition and insufficient product competitiveness, the company’s core consumer electronics business is still under pressure.
Public records show that Konka Group was established in the early 1980s and was once a leading company in China’s color TV industry. However, under the dual impact of technological iteration and industry competition, this long-established TV company has long lost its competitive advantage, and its color TV business has been declining since 2014.
In April 2025, Shenzhen Konka Group A’s controlling shareholder Huaqiao City Group transferred all its shares in the company to Panshi Runchuang, a subsidiary of China Resources Group, for free, thus “changing ownership” of Shenzhen Konka Group A to China Resources.
Subsequently, in mid-August 2025, the company completed multiple core management changes, including the appointment of a new Chairman and CFO. Among them, Zhou Bin, due to the expiration of his term and other appointments, no longer served as Vice Chairman, Director, and Committee Member of the Board.
In this round of board elections and the appointment of senior management personnel, Cao Shiping was elected as a non-independent director and appointed as the CEO of the company. Less than half a year later, on January 16 of this year, Cao Shiping submitted a written resignation report, applying to resign from the 11th Board of Directors of the company, the Strategic and Investment Committee of the Board of Directors, and as the CEO, but he will continue to serve in the company after resigning.
Currently, Shenzhen Konka Group A continues to face operational difficulties and the pressure of delisting. According to the latest announcement, if the net assets attributable to the shareholders of the listed company are negative at the end of 2025 after audit, the stock trading of the company will be subject to delisting risk warnings after the disclosure of the “2025 Annual Report,” with the stock abbreviation being marked with “*ST” indicating the risk of delisting.