KONKA Group Co., Ltd. (KONKA Group) reported a net loss of 383 million yuan (RMB, the same below) in the first half of this year, with a net loss of 1.028 billion yuan after deducting non-recurring gains and losses. This marks a significant performance handover as state-owned China Resources Group, holding 30% of KONKA Group’s shares, became the new controlling shareholder.
On August 29, KONKA Group released its “2025 Interim Report.” The report revealed that in the first half of 2025, the company achieved operating income of 5.248 billion yuan, a year-on-year decrease of 3.05%. The net profit attributable to shareholders of the listed company was a loss of 383 million yuan, compared to a loss of 1.088 billion yuan in the same period last year. However, the net profit after deducting non-recurring gains and losses was a loss of 1.028 billion yuan, almost on par with the 1.103 billion yuan loss in the same period last year.
According to the Southern Metropolis Daily on September 4, KONKA Group’s reduced net profit in the first half of the year was mainly due to non-recurring gains totaling 644 million yuan. The largest portion of this, amounting to 656 million yuan, came from accounting method changes and the disposal of trading financial assets related to Wuhan Tianyuan Group Co., Ltd.’s equity. This indicates that KONKA Group’s core business in consumer electronics (including color TVs and white goods) continued to face challenges in the first half of the year.
The “2025 Interim Report” showed that the consumer electronics sector generated revenue of 4.713 billion yuan, a decrease of 0.87% year-on-year. While the revenue of color TV business increased by 6.09% compared to the previous year, the gross profit margin was only 0.39%. Meanwhile, the revenue from white goods business dropped by 6.76% year-on-year. The overall gross profit margin for the consumer electronics sector was only 3.23%, highlighting the ongoing struggle for profitability within KONKA Group.
Regarding the performance losses, KONKA Group stated in the interim report that the consumer electronics business continued to face pressure. The industry competition intensified, new product launches fell short of expectations, and clearing some non-level-one energy-efficient products led to certain gross profit losses, keeping the core sector in a state of loss. Additionally, high financial costs and tight cash flow brought continuous operational pressure to the company. The company’s financial expenses in the first half of the year reached 311 million yuan. The net cash flow generated from operating activities was -676 million yuan, compared to -440 million yuan in the same period last year, indicating a 53.78% increase in net outflow, demonstrating significant financial pressure in daily operations.
In July of this year, with the approval of China’s State-owned Assets Supervision and Administration Commission of the State Council, the controlling shareholder of KONKA Group changed to Rongchuang Runchuang, with China Resources becoming the actual controlling entity. On August 15, the KONKA Professional Integration Conference was held in Shenzhen, officially establishing KONKA as a business unit within China Resources Group’s technology and emerging industries sector.
Established on May 21, 1980, KONKA Group Co., Ltd. is primarily engaged in manufacturing and selling black-and-white and color televisions, recorders, audio equipment, facsimile machines, intercoms, and telephones, among other audiovisual products.