Konka welcomes new shareholders

On July 22, Konka Group (Shenzhen Konka A, 000016.SZ) announced that the original controlling shareholder OCT Group and its concerted parties have transferred all A shares and B shares held by Konka Group to a subsidiary designated by China Resources Co., Ltd. ("China Resources") for free.

This means that Konka officially bids farewell to its old employer, OCT Group, and welcomes a new controlling shareholder, China Resources. It is understood that after the free transfer of equity, China Resources holds a total of 30% of Konka's equity through Panshi Runchuang (Shenzhen) Information Management Co., Ltd. and Hemao Co., Ltd.

What the industry is paying attention to is how China Resources, as a powerful central enterprise, can lead the former "color TV king" back to glory in the consumer electronics market.

On July 22, China Resources Group held a work conference for the first half of 2025 in Shenzhen. In the first half of 2025, China Resources Group achieved double growth in revenue and profit, of which operating income was 437.6 billion yuan and total profit was 437.6 billion yuan. 7.4 billion, achieving "half the time and half the task." The company stated that it will accelerate the implementation of regional cooperation results, carry out high-quality mergers and acquisitions, strive to win the battle to improve quality and efficiency and manage loss-making enterprises, and do a solid job in the preparation of the "15th Five-Year Plan".

The former "color TV king" welcomes new shareholders

As the former "color TV king" Konka Group, the transfer of controlling rights has been officially completed.

On July 22, Konka Group announced that OCT no longer holds shares in Konka. Panshi Runchuang holds about 524 million A shares of Konka Group, accounting for 21.76% of the total share capital; Hemao Co., Ltd. holds approximately 198 million B shares through CITIC Securities Brokerage (Hong Kong) Co., Ltd., accounting for 8.24% of the total share capital; China Resources holds a total of 30% of the shares in Konka.

This change of controlling shareholder began three months ago. On the evening of April 8, Konka Group announced that it had received notice from the controlling shareholder OCT that it planned to implement professional integration of Konka by other central-owned enterprise groups. As soon as the news came out, it triggered a strong response in the capital market. On April 10, Shenzhen Konka A went one-word after experiencing brief fluctuations.It hit the daily limit and closed at 4.64 yuan, with the total market value reaching 11.173 billion yuan.

On April 29, Konka announced again that its controlling shareholder was changed from OCT Group to Panshi Runchuang (Shenzhen) Information Management Co., Ltd., and the actual controller was changed to China Resources Group. The final control power still belongs to the State-owned Assets Supervision and Administration Commission of the State Council. Since then, the free transfer of shares has been implemented and completed in July.

This means that Konka officially bids farewell to the 34-year OCT helm era. Previously, since 1991, OCT has officially become the largest shareholder of Konka. In 1992, Konka became Shenzhen's first industrial enterprise with an output value exceeding 10 billion. It was also listed on the Shenzhen Stock Exchange as the "first color TV stock" and became the darling of the capital market. The company's total assets were only 549 million yuan when it went public, but rose to 8.913 billion yuan in 2000, a 16-fold increase in eight years.进入到21世纪后，彩电行业向液晶技术转型，海Xinxin, TCL, etc. all began to invest intensively in building factories.

In recent years, the consumer electronics industry has experienced structural adjustments. According to data from the China Electronic Information Industry Development Research Institute, the global consumer electronics market will be approximately US$1.1 trillion in 2023. The market will gradually pick up in 2024, with the scale rising to US$1.15 trillion.

On July 14, Konka released a semi-annual report performance forecast and disclosed that the net profit loss attributable to the parent company is expected to be 360 million yuan to 500 million yuan. Konka explained in the announcement that competition in the industry in which the company's consumer electronics business operates continues to intensify, the launch of new products is slower than expected, the product structure fails to effectively match the national subsidy policy, and the liquidation of some inventory results in gross profit losses, resulting in the consumer electronics business still being in the red.

On the other hand, Konka is also pursuing the "second growth curve", that is, the semiconductor business. The financial report shows that the company's semiconductor and memory chip business revenue in 2024 will be 170 million yuan, accounting for 1.53% of revenue. Konka explained in the announcement that although the company's semiconductor business has made certain breakthroughs in technology research and development, the company's semiconductor business is still in the early stages of industrialization and has not yet achieved large-scale and efficient output.

Industrial transformation, collision and integration

It is worth noting that this transfer is not a simple equity transfer, but also a professional integration.

Shareholder, OCT has developed cultural and tourism real estate projects in Shenzhen such as Window of the World, Happy Valley, and Eastern OCT.

For Konka, the "change of ownership" can not only find financial and technical synergy for its consumer electronics business, but with positive expectations for the professional integration of central enterprises, its credit situation is expected to improve significantly.

For China Resources, on the one hand, it needs to face the reality of the transformation of Konka's main business and new business; on the other hand, taking over Konka is a coexistence of opportunities and challenges. Konka's new semiconductor business may also be China Resources' key position in the semiconductor industry chain, becoming a highly imaginative part of Konka's "new story."

For example, Konka’s semiconductor business is providing synergy for diversified scenarios in the main consumer electronics business, such as display chip technology, which can help Konka extend from TVs to commercial displays, high-speed rail screen displays and other scenarios. Previously, Konka actively deployed the two major sectors of semiconductor display and semiconductor storage. In terms of semiconductor display, Chongqing Konka Optoelectronics has built an MLED chip mass production line, a full-process mass transfer pilot line, a Micro LED direct display mass production line, and an MLED testing center. In terms of semiconductor storage, Hefei Kangxinwei's storage main control chips and storage modules can cover consumer-grade, automotive-grade, and industrial-grade scenarios.

After the news was announced at the end of April this year that China Resources would soon take over, the share price of Shenzhen Konka A even hit the daily limit at the opening on April 30, closing at 5.45 yuan/share. The market once again showed positive expectations for this major change.

In fact, the essence of this "change of ownership" story is that the enterpriseIn the collision and integration period of industrial transformation, Konka's transformation needs new help, and China Resources' industrial ambitions also need Konka's manufacturing genes. Will the final outcome revive Konka's glory, or will it give birth to a real industrial giant? It remains to be seen whether spring will be ushered in and the flowers will bloom. The suspense of the story remains to be seen.