KONKA GROUP(SZ:000016) Nan Fang Du Shi Bao·2026-01-04 12:01Core Viewpoint - The company Konka is facing significant challenges due to regulatory scrutiny over past financial practices and current overdue shareholder loans totaling approximately 628 million yuan, indicating serious issues in asset management and cash flow recovery [2][5]. Regulatory Issues - On December 26, the company received a warning from the Shenzhen Securities Regulatory Bureau regarding a 2018 equity transfer that was deemed to have inaccurate financial disclosures, leading to penalties for several former executives [3][4]. - The regulatory body found that the equity transfer did not meet the conditions for recognizing investment income, resulting in violations of accounting standards and disclosure regulations [3]. Financial Challenges - The company announced overdue shareholder loans amounting to approximately 628 million yuan, with significant risks associated with the recovery of these funds [5]. - The largest overdue loan of about 395 million yuan is linked to Chuzhou Kangxin Health Industry Development Co., which has faced project delays due to unfavorable market conditions and policy changes, resulting in zero revenue and high liabilities [5][6]. - Another overdue loan of approximately 233 million yuan is associated with Yikang Technology, which is also experiencing financial difficulties, with a reported net loss of 44.66 million yuan [7]. Company Response - In response to the overdue loans, the company has established a special task force to manage the situation and is considering legal actions to protect its interests [6]. - The company has expressed a commitment to rectify past issues and improve compliance following the regulatory warnings [4].