Konka Group Co., Ltd., once a leading name in China’s color TV market, has announced its decision to voluntarily delist its A and B shares from the Shenzhen Stock Exchange. This move marks the end of a 34-year journey on the public market for the company, which was established in 1980.
Delisting Process Underway
The decision was approved by the company’s eleventh board of directors at its twelfth meeting. Following shareholder approval, Konka’s shares will be transferred to the delisting sector managed by the National Equities Exchange and Quotations Co., Ltd. The company’s stock was suspended from trading starting September 4th and will be delisted within five trading days after the Shenzhen Stock Exchange officially announces the termination of its listing.
A special second extraordinary general meeting for 2026 is scheduled for September 14th to vote on the delisting proposal. For the delisting to proceed, it requires approval from over two-thirds of the total voting rights of all shareholders present at the meeting. Additionally, shareholders excluding those who hold 5% or more of the company’s stock, along with directors and senior management, must also approve the delisting with over two-thirds of their voting rights.
Financial Woes Trigger Delisting
The primary catalyst for this voluntary delisting is Konka’s negative net assets at the end of the 2025 fiscal year. As of the close of 2025, Konka’s net assets attributable to the parent company were -6.083 billion yuan, with a liability-to-asset ratio soaring to 126.22%. Consequently, the company’s stock was placed under delisting risk warning on April 30, 2026. Had its net assets remained negative in 2026, mandatory delisting would have been enforced.
The company has arranged a cash option for shareholders. The exercise price for A shares is set at 2.48 yuan per share, representing a premium of approximately 6.44% over its closing price of 2.33 yuan before suspension. This offer is backed by Panshi Runchuang (Shenzhen) Information Management Co., Ltd. For B shares, the exercise price is 0.73 Hong Kong dollars per share, provided by HMA Limited.
Performance and Future Outlook
Konka Group was founded on May 21, 1980, as one of the first Sino-foreign joint ventures in the electronics sector after China’s reform and opening-up. Its A and B shares were simultaneously listed on the Shenzhen Stock Exchange on March 27, 1992. In July 2025, following the completion of equity transfers related to professional integration, China Resources’ Panshi Runchuang became the controlling shareholder, holding a 21.76% stake.
Despite the delisting, Konka stated that its operations will remain stable post-termination. The company has no current plans for major asset restructuring or a specific timeline for relisting after delisting. This strategic shift comes at a time of financial difficulty, with the company reporting a consolidated net loss of 173 million yuan in the first half of 2026, a decrease from the 383 million yuan loss in the same period last year. Revenue also saw a significant drop of 26.6% year-on-year, totaling 3.852 billion yuan.
Konka attributed its losses to two main factors: persistent fluctuations in the upstream supply chain for its consumer electronics business, leading to increased product costs and squeezed profit margins that failed to cover operating expenses; and the semiconductor business, still in its early stages of industrialization, which has not yet achieved economies of scale or profitability, contributing to overall losses.
