Konka Group Co., Ltd.
*ST康佳A
000016
Shenzhen Stock Exchange
Company Profile
The Company's core competitiveness lies in its manufacturing ability, R&D ability, brand, marketing network and human resources. In terms of manufacturing capabilities, the Company has carried out intelligent upgrading and transformation of its production and manufacturing bases in places such as Anhui, Dongguan, Xi'an, Suining, and Xinxiang. Among them, the Konka factory in Anhui has been awarded the title of "National Intelligent Manufacturing Demonstration Factory", and its intelligent manufacturing level has reached an advanced level in the industry. In terms of R&D, the Company has set up comprehensive AI and IoT laboratories and 5G Ultra HD laboratories in cooperation with major universities or scientific research institutions, and established an academician workstation. The Company has also formed a technology research alliance that matches its industrial layout. It possesses nearly a hundred core and key technologies, a R&D team of approximately 1,400 members, and has recruited a hundred industry technical talents for its Micro LED project. In terms of brand, the Company continues to promote brand strategy construction, system construction, image construction and cultural construction, focuses on improving the scientific and international image of the enterprise, strengthens the brand status, has a certain brand awareness and reputation in the consumer group, and has good brand credit in banks and other financing channels. In terms of marketing channels, the Company innovates channel reform, cooperates online and offline for win-win results, and strives for development at home and abroad. In offline channels, the Company has 68 branches in provinces and cities across the country, more than 5,000 after-sales service stores, and its marketing and service network covers the whole country; Through online channels, the Company has settled in e-commerce platforms such as Tmall, JD.com, Suning, Vipshop, Pinduoduo, etc., to explore the development of live e-commerce business and seek new growth poles for business development; In overseas channels, the Company's business covers Latin America, Europe, Asia-Pacific and other countries and regions, and has a sound marketing network. In terms of human resources, the Company boasts a leadership team with many years of management and industry experience, as well as a high quality execution team.
Full description
The Company's main businesses include consumer electronics business, semiconductor business and PCB business. The relevant situation is described below: (I) Consumer electronics business This division primarily comprises the multimedia sub-division and the white goods sub-division, with details as follows: 1. The multimedia business The Company's multimedia business faces the global market, mainly including domestic color TV business and export color TV business. The domestic color TV business mainly focuses on two business models: B2B (an abbreviation for Business-to-Business, that is, business-to-business) and B2C (an abbreviation for Business-to-Consumer, that is, business-to-consumer). Branches, business departments, and after-sales maintenance service outlets have been established across the country. The operating profit is derived from the price difference between the cost of color TV products and their selling prices. As for selling its color TVs abroad, the Company mainly relies on B2B. Its color TVs are sold to Asia Pacific, Middle East, Central & South America, East Europe, etc. And operating profit source is also the differences between the costs and the selling prices of its color TVs. According to data from AVC, in the first half of 2025, domestic color TV sales reached 13.75 million units, a year-on-year increase of 1.8%. Sales revenue rose to RMB 56.1 billion, up 7.5% year-on-year. The differentiated performance in sales volume and sales revenue growth reflects the industry's deepening transformation towards value enhancement. 2. White goods business The white goods produced by the Company mainly include refrigerators, washing machines, air conditioners, freezers, and dishwashers, etc., which are sold through B2B and B2C mainly to the domestic market. The Company profits from the margins between the costs and the selling prices of its white goods. Through the merger and acquisition of the "Frestec" brand, the Company strengthened the white goods brand foundation; by establishing a Ningbo air-conditioning production base through a joint venture, the Company has built up its own air-conditioning manufacturing capabilities; by acquiring the Chinese factory of Beko (front-loading washing machine), the Company has made up for the technical shortcomings in front-loading washing machine production; by constructing a new Xi'an Smart Home Appliance Industrial Park, the Company develops the dishwasher business. in addition, the Company is currently optimizing each link of "research, production, supply, sales and service" internally, integrating channel resources externally, achieving channel reuse with the upstream supply side and the downstream channel side, and continuously improving the product sales structure and competitiveness of its white goods business. According to data from AVC, China's refrigerator industry was undergoing structural adjustments in the first half of 2025, with overall growth momentum remaining weak. During this same period, domestic sales of air conditioners reached 38.45 million units, generating RMB 126.3 billion in sales revenue. On the export front, Chinese air conditioner exports saw a year-on-year increase of 4.7%; however, monthly figures revealed a trend of strong performance early on, which tapered off later in the period. In the first half of 2025, the domestic washing machine market recorded retail sales of 21.03 million units, a year-on-year increase of 10.1%, with retail sales revenue reaching 47.6 billion yuan, up 11.5% year-on-year. The industry demonstrated a trend of structural upgrading through innovations in product forms. (II) Semiconductor business Currently, the Company has established a presence in the semiconductor optoelectronics field, with a focus on three major business segments, including Micro LED & Mini LED chips, mass transfer, and display technology, advancing the transformation of its optoelectronics business from technological R&D to industrialization. After industrialization, the Company's operating profits will be derived from the spread between product costs and sales prices. (III) PCB business The Company's PCB business primarily focuses on metal substrate products, thick copper products, high multi-layer and HDI (high-density interconnect) products, and rigid-flex products. Operating under a B2B business model, the Company targets four major electronics fields, namely new energy, automotive electronics, communications & data centers, and new consumer electronics. Profitability is achieved through the spread between product costs and sales prices.