Economic Observer reporter Zhang Xiaohui

After executives were investigated one after another, Konka Group Co., Ltd. (000016. SZ, hereinafter referred to as "Konka Group" or "* ST Konka A") suffered a huge loss of billions.

The annual report disclosed on the evening of April 28th showed that in 2025, Konka Group achieved operating revenue of 9.835 billion yuan, net profit attributable to the parent company was -12.582 billion yuan, and net assets were negative for the first time, reaching -60.83 billion yuan. Konka Group was therefore subject to delisting risk warning and its stock abbreviation was changed to "* ST Konka A".

On April 23rd at 17:00, a notice was posted on the official website of the Guangdong Provincial Commission for Discipline Inspection: Liu Xitian, former assistant president of Konka Group, is suspected of serious violations of discipline and law and is currently undergoing disciplinary review by the Central Commission for Discipline Inspection and the National Supervisory Commission stationed in China Resources Group, as well as supervision and investigation by the Huizhou Huidong County Supervisory Commission.

On January 29th, earlier, Zhou Bin, former Party Secretary and Vice Chairman of the Board of Directors of Konka Group, and Li Hongtao, former Vice President, were suspected of serious violations of discipline and law, and were also subject to disciplinary review by the Discipline Inspection and Supervision Group of the Central Commission for Discipline Inspection and the National Supervisory Commission stationed in China Resources Group, as well as supervision and investigation by the Huizhou Huidong County Supervisory Commission.

One year ago in April 2025, a shareholder of Jiangxi Kangjia New Material Technology Co., Ltd. (hereinafter referred to as "Jiangxi Kangjia") named Zhu Xinming issued a real name report, claiming that two of the three individuals, Zhou Bin and Liu Xitian, were suspected of inflating the listed company's 2018 performance by more than 40 million yuan.

After Zhu Xinming reported it for a year, Zhou Bin and Liu Xitian were investigated one after another.

On May 8, 2026, a reporter from the Economic Observer called the Secretary's Office of Konka Group as an investor to inquire whether the investigation into Zhou Bin and Liu Xitian was related to Zhu Xinming's real name report? Will the company announce relevant matters? The staff of the Secretary's Office replied, "Liu Xitian's identity is assistant president, not a company executive, so he is not within the scope of information disclosure. The disciplinary inspection and supervision commission's handling of cases is confidential to the unit, and the company does not have access to the relevant case information

Real name report from one year ago

Zhu Xinming is the second largest shareholder of Jiangxi Kangjia, holding 25.67% of the shares; Konka Group is the controlling shareholder of Jiangxi Konka, holding 51% of the shares. From April 2020 to July 2023, Zhu Xinming served as the chairman and legal representative of Jiangxi Konka.

In July 2025, Shenkangjia completed the change of controlling shareholder, and the original controlling shareholder OCT Group and its concerted action persons transferred all their equity holdings to Panshi Runchuang, a wholly-owned subsidiary of China Resources Limited (hereinafter referred to as "China Resources"), free of charge. The controlling shareholder of Shenkangjia has been changed to Panshi Runchuang, and the actual controller has been changed to China Resources.

During this period, Zhu Xinming issued a real name report.

The content of Zhu Xinming's real name report is: Konka Group falsified its 2018 financial report performance, fabricating a net profit of 47.1262 million yuan, accounting for 11.5% of the net profit for that year. The specific details are that from March to June 2018, when Konka Group sold 5% equity of its subsidiary Anhui Kaikai Vision E-commerce Co., Ltd. (hereinafter referred to as "Kaikai Vision"), Zhou Bin and Liu Xitian arranged funds to "turn left to right" to complete the transaction, thereby inflating the annual profits of the listed company. In his real name report, Zhu Xinming stated, "Zhou Bin and Liu Xitian led this matter and instructed me to lend 95.52 million yuan of bridge funds, which have not been repaid yet. Among them, 50 million yuan eventually flowed into someone else's account, suspected of embezzling state-owned assets. We earnestly request the China Securities Regulatory Commission to initiate an investigation and pursue legal responsibility

Zhu Xinming told the media that the path of selling 5% equity of Kaikai Vision was as follows: in June 2018, the acquirer of the equity was Guangdong Nanfang Aishi Entertainment Technology Co., Ltd. (hereinafter referred to as "Nanfang Aishi"), and Nanfang Aishi lacked funds, so it borrowed 90 million yuan from Zhuhai Dongfang Longxiang Investment Management Center (hereinafter referred to as "Dongfang Longxiang"). Among them, 40 million yuan was used to purchase equity in Kaikai Vision, and the whereabouts of the other funds remain a mystery. In December 2018, Zhou Bin asked Zhu Xinming to assist in taking over the debt of the above-mentioned 90 million yuan loan from Dongfang Longxiang. It was agreed that the loan would mature in March 2019, and Southern Love TV would repay Zhu Xinming 95.52 million yuan. Zhu Xinming stated that Liu Xitian was the specific person in charge of this transaction.

In 2022, Zhu Xinming obtained the bank statement details of the funds through a court investigation order: From March to May 2018, Konka Group transferred a total of 353 million yuan to Bohai International Trust multiple times, which then transferred the money to Zhuhai Dongfang Longchen Investment Management Center (Limited Partnership) (hereinafter referred to as "Dongfang Longchen"). On June 26 of the same year, Dongfang Longchen transferred 90.5 million yuan to Dongfang Longxiang. At the same time, Southern Aishi borrowed 90 million yuan from Dongfang Longxiang, of which 40 million yuan was transferred to Konka Group for the acquisition of 5% equity in Kaikai Vision, and the remaining 50 million yuan is unknown.

After being reported under real name, Zhou Bin responded to the media: This is a false accusation.

Issued a warning letter

On December 26, 2025, Konka Group received a decision from the Shenzhen Securities Regulatory Bureau regarding the issuance of warning letters for Konka Group Co., Ltd., Liu Fengxi, Zhou Bin, and Li Chunlei. The content of the warning letter is related to the situation of Zhu Xinming's real name report.

The Shenzhen Securities Regulatory Bureau stated in a warning letter that Konka Group sold 5% equity of Kaikai Vision in June 2018, which did not meet the conditions for recognizing investment income, resulting in inaccurate disclosure of information in the company's 2018 semi annual report. The company's then chairman Liu Fengxi, then general manager Zhou Bin, and then financial director Li Chunlei bear the main responsibility for the above-mentioned issues.

At this time, it has been less than a month since Zhou Bin and Li Hongtao were investigated.

On January 13, 2026, Yang Bo, Vice President of Konka Group, resigned; On January 17th, Cao Shiping, the President of Konka Group, resigned; 12 days later, Zhou Bin and Li Hongtao were officially announced to be under investigation.

Li Hongtao, born in 1968, holds a bachelor's degree. Served as Assistant General Manager, General Manager, Chairman and General Manager of Shenzhen Konka Communication Technology Co., Ltd., Assistant President and Vice President of Konka Group, and other positions. However, he resigned from the position of Vice President of the company in 2024 due to personal reasons.

After Panshi Runchuang became the controlling shareholder of Konka Group, Konka Group revised the "Code of Conduct for Directors and Senior Management Personnel" on March 16, 2026. Article 4 stipulates that company directors and senior management personnel should be loyal to the company, not use their position, authority, and insider information in the company to seek personal benefits, and not obtain improper benefits from third parties due to their identity as directors or senior management personnel

Behind the billions of huge losses

Konka Group's 2025 annual report shows that the company had a bet agreement with Alibaba (China) Network Technology Co., Ltd. (hereinafter referred to as "Alibaba") when selling its equity in Kaikai Vision.

The specific content is that when Konka Group transferred the equity of Kaikai Vision in previous years, it signed an agreement with Alibaba, promising that if Kaikai Vision fails to complete its IPO (initial public offering) before the agreed time, the company has the obligation to repurchase its acquired equity at the original acquisition price and pay interest. Due to the failure of Kaikai Vision to achieve IPO listing before the agreed time, Alibaba filed a lawsuit against the company in 2024, and the company will pay the equity repurchase price and interest to Alibaba in 2025.

Konka Group stated in its annual report that the above-mentioned agreement between the company and Alibaba in the equity investment of Kaikan Vision did not comply with the company's internal approval procedures and did not undergo appropriate accounting treatment. Based on the contractual obligations and the current understanding of the facts, the company's management has recognized the obligation as a financial liability and made corrections to previous errors.

In addition, when Chongqing Yiping Technology Co., Ltd. (the core Internet platform of Konka Group, which is responsible for the operation of Konka's smart TV system, advertising, content value-added services and cross scenario marketing, hereinafter referred to as "Yiping") introduced strategic investors in 2021, Konka Group signed a supplementary agreement with 11 investors, promising that if Yiping fails to complete its IPO before the agreed time, the company has the obligation to repurchase its transferred equity at the original transfer price and pay interest.

Regarding this gambling matter, the announcement shows that Konka Group has also failed to comply with the approval procedures of the company's board of directors and shareholders' meeting, and has not made appropriate accounting treatment and information disclosure.

Now, Konka Group has recognized the above obligations as a financial liability and made corrections to previous errors in its 2025 financial report. These have had a significant impact on the financial situation of Konka Group in 2025.

An investor asked Konka Group through the Shenzhen Stock Exchange Interactive Easy: "What are the plans to ensure that it will not be delisted next year after being ST this year? ?

Konka Group replied that the industry competition in which the company operates is fierce, and its own operations still face pressure. It is currently carrying out relevant work around asset revitalization, business optimization, cost reduction, and other aspects. Investors are advised to pay full attention to relevant risks and invest rationally.

As of May 8, 2026, the stock price of Konka Group has fallen to around 3 yuan, with a total market value of 7.2 billion yuan. This old home appliance group is facing financial difficulties. Whether the acquisition of China Resources can change the fate of the company will take time to prove.