KONKA GROUP(SZ:000016) 3 6 Ke·2025-05-01 02:23Core Viewpoint - The recent allegations against Konka Group regarding inflated performance figures and the company's poor financial results highlight significant challenges and potential risks for the company moving forward [1][2][4]. Financial Performance - Konka Group's 2024 financial report revealed a revenue of 11.115 billion, a year-on-year decline of 37.73%, and a net loss of 3.296 billion, which exceeded expectations and represented a 52.31% increase in losses compared to the previous year [5]. - The company's asset-liability ratio surged to 92.65%, marking a new high since its listing [5]. - The semiconductor business revenue plummeted from 340 million in 2023 to 170 million in 2024, a staggering decline of 94.99% [13]. Management and Governance Issues - Despite significant losses, several executives received salary increases, raising concerns about management's accountability and priorities [2]. - The allegations of performance inflation by a shareholder during a sensitive period of ownership transition suggest potential governance issues within the company [1][3]. Market Position and Competition - Konka's market share in the television sector has dwindled to below 5%, with Q1 2025 shipments falling below 500,000 units, indicating a significant loss of competitive edge [6]. - The company's sales gross margin has been notably low, with a maximum of only 4.40% over the past four years, compared to competitors like Midea and Hisense, which maintain margins above 20% [7]. Strategic Challenges - Konka's historical focus on real estate during a critical transition to LCD technology has hindered its ability to compete effectively in the television market [10][11]. - The company's attempts at diversification into supply chain management and semiconductor sectors have not yielded significant results, with the core business still heavily reliant on consumer electronics, accounting for 91.20% of revenue [13]. Future Outlook - The recent announcement of a potential professional integration with other state-owned enterprises presents both opportunities and challenges for Konka, as it seeks to address liquidity issues and enhance operational efficiency [22][23]. - The market has shown some optimism regarding Konka's potential recovery, as indicated by stock price increases following news of the integration [24].