Another former senior executive has been placed under investigation, how many undisclosed "scars" does Konka still have?

Following the downfall of former Vice President Yang Bo, long-established home appliance giant Konka Group has once again been placed under the spotlight — since the start of 2026, a total of 6 former senior executives of the enterprise have been placed under investigation!

Compared with the frequent investigation of senior executives on suspicion of serious violations of laws and regulations, the operating fundamentals of Konka Group are under multi-line pressure: performance losses, involvement in judicial disputes, and the "shell protection" battle is imminent...

Former Senior Executive With An Annual Salary Of About 3 Million Yuan Falls From Grace

On August 19, the Commission for Discipline Inspection and Supervision of Huizhou City, Guangdong Province, announced that Yang Bo, former Vice President of Konka Group Co., Ltd., is suspected of serious violations of discipline and law, and is currently undergoing disciplinary review by the Discipline Inspection and Supervision Group of the Central Commission for Discipline Inspection and the National Supervisory Commission stationed in China Resources Group, and supervision and investigation by the Supervision Commission of Huidong County, Huizhou City.

Public information shows that Yang Bo, born in 1970, holds a master's degree. He once served as a director of the Education and Finance Channel of Shenzhen Cable TV Station, and successively served as Regional Director of Marketing, Sales and Support of American Taligent Communications, General Manager of the Program Operation Department of Shenzhen Tianwei Video Co., Ltd., and Director and General Manager of Shenzhen Tianhua Century Media Co., Ltd.

In March 2017, Yang Bo took office as Vice President of Konka Group. During his tenure, he participated in the business expansion related to the group's smart terminals and industrial parks, until he resigned as Vice President on January 12, 2026. According to the data disclosed in the annual report, during Yang Bo's tenure at Konka, his maximum annual pre-tax salary was close to 3 million yuan (in 2020), making him a well-paid member of the group's management.

It is worth mentioning that before Yang Bo's downfall, many former senior executives of Konka Group had already been placed under investigation:

On January 29, 2026, Zhou Bin, former Party Secretary and Vice Chairman of the Board of Directors of Konka Group, and Li Hongtao, former Vice President, were both suspected of serious violations of discipline and law, and accepted disciplinary review by the Discipline Inspection and Supervision Group of the Central Commission for Discipline Inspection and the National Supervisory Commission stationed in China Resources Group, and supervision and investigation by the Supervision Commission of Huicheng District, Huizhou City.

On April 23, 2026, according to the report of Nanyue Qingfeng Network, Liu Xitian, former Assistant President of Konka Group, is suspected of serious violations of discipline and law, and is currently undergoing review by the Discipline Inspection and Supervision Group of the Central Commission for Discipline Inspection and the National Supervisory Commission stationed in China Resources Group, and supervision and investigation by the Supervision Commission of Huidong County, Huizhou City.

On May 9, 2026, Yang Saiqing, Deputy General Manager of the Other Business Management Department of Konka Group, and Li Yanbo, former Deputy General Manager of Konka Corewin Semiconductor Technology (Shenzhen) Co., Ltd., were notified of suspected serious violations of discipline and law, and accepted disciplinary review by the Discipline Inspection and Supervision Group stationed in China Resources Group, and supervision and investigation by the Supervision Commission of Huicheng District, Huizhou City.

On July 30, 2026, Guo Yimian, former manager of Konka Venture Capital Development (Shenzhen) Co., Ltd., and Li Yanchan, assistant to the manager, were successively notified. The two are suspected of serious violations of discipline and law, and are undergoing disciplinary review by the Discipline Inspection and Supervision Group of the Central Commission for Discipline Inspection and the National Supervisory Commission stationed in China Resources Group, and supervision and investigation by the Supervision Commission of Longmen County, Huizhou City.

Note: Konka Venture Capital Development (Shenzhen) Co., Ltd. is the core venture capital platform under Konka Group, operating the "Konka Star" mass entrepreneurship and innovation brand, focusing on technology enterprise incubation, equity investment, industrial park operation and other businesses, and holds important permissions such as project introduction, investment cooperation, and carrier operation.

On August 18, 2026, Weng Jurong, General Manager of Sichuan Suining Konka Industrial Park Development Co., Ltd., was notified by the Huizhou Municipal Commission for Discipline Inspection and Supervision, and is suspected of serious violations of discipline and law to accept disciplinary review and supervision investigation. Weng Jurong has served in the Konka system for more than 20 years, and has successively held a number of core management positions in the multimedia business division, supply chain management, and technology industrial park business lines.

Note: Sichuan Suining Konka Industrial Park Development Co., Ltd. is a subsidiary under Konka Group, wholly owned by Konka Group Co., Ltd. The enterprise is responsible for the development, construction and operation of Konka's technology industrial parks in Southwest China, and is a strategic carrier of Konka's "Technology + Industry + Park" layout.

After sorting out, counting only former senior executives at the level of deputy general manager of the department and above, 5 of them have fallen from grace within the year. Adding the newly notified former Vice President Yang Bo, the number of senior executives under investigation in Konka Group has expanded to 6.

Such a large-scale "batch downfall" occurring in the same group enterprise is extremely rare across the country. From another perspective, this also objectively reflects the firm determination of China Resources Group, the giant central enterprise, to carry out strict rectification after it became the new helm of the Konka system!

In July 2025, with the approval of the State-owned Assets Supervision and Administration Commission of the State Council, the former controlling shareholder Overseas Chinese Town Group transferred all Konka shares it held free of charge, and China Resources Group became the new controlling shareholder of Konka through its subsidiaries. The actual controller of the enterprise is still the State-owned Assets Supervision and Administration Commission of the State Council. Konka was officially incorporated into the technology manufacturing business segment under China Resources, and immediately launched a comprehensive internal rectification work.

Of course, for China Resources, it is far from the showtime to open champagne. After taking over Konka Group, more severe challenges are still ahead.

Konka Group Under Pressure From Multiple Sides

A few days before the downfall of former Vice President Yang Bo, Konka Group disclosed a new litigation case involving equity disputes of its subsidiary Chongqing Yisquare Technology Co., Ltd. (hereinafter referred to as Yisquare) through an announcement, which once again became the focus of attention in the capital market.

Combining announcements and public reports, with Xiyue New Media No.2 (Zhuhai) Equity Investment Fund officially filing a claim for the recovery of equity consideration of about 121 million yuan, the total amount of involved funds in this series of litigations triggered by the failure of IPO performance bet has risen to 758 million yuan.

According to public reports from media such as Southern Metropolis Daily and Electric Technology, the source of this continuously fermenting equity dispute points to an asset revitalization transaction promoted by Konka Group in 2021.

At that time, Shenzhen Konka transferred 70% equity of Yisquare through public listing, and finally introduced an investor consortium composed of 17 entities including Shanghai Magic Electric Information Technology. After the transaction was completed, a total of 2.8 billion yuan of funds was recovered, and Shenzhen Konka's shareholding ratio in Yisquare dropped to 25.78%.

This transaction was regarded as a typical case of a state-owned listed company spinning off high-quality assets to achieve asset-light transformation at that time. It not only supplemented cash flow for Konka Group, but also carried the expectation of pushing Yisquare to the capital market. However, behind this high-premium transaction, strict special rights clauses for shareholders were bound.

According to the relevant agreement signed, the two parties agreed on a clear deadline for the IPO performance bet — if Yisquare fails to complete the listing before June 30, 2025 or December 31, 2025, the investor has the right to exercise the equity claim right and require Shenzhen Konka to repurchase all the equity it holds.

However, in 2026, Yisquare's listing process finally failed to catch up with the agreed window period, and the performance bet clause was substantially triggered. Since April this year, investors of Yisquare have successively claimed the repurchase right through litigation, the number of cases and the amount of involved funds have continued to increase, forming a chain of recovery situation.

In May 2026, Konka Group disclosed that the total amount of newly added litigation and arbitration cases involved in the past 12 months was 737 million yuan, accounting for 12.12% of the absolute value of the net assets of the latest period. The amount of cases initiated by Konka as the plaintiff was only 1.5177 million yuan, while the amount of passive responding to lawsuits was as high as 736 million yuan, with a passive rate exceeding 99%.

In July this year, Konka Group once again attracted high attention due to an announcement — the total principal of overdue internal loans to subsidiaries that are expected to be unrecoverable reached 4.425 billion yuan. Since August, Konka Group has added multiple court hearing announcements for consecutive days.

Essentially, the "internal and external troubles" point to the serious lack of the main business's "hematopoietic capacity", which can be seen from the performance in recent years. From 2022 to 2025, the company suffered consecutive large losses. By the end of 2025, Konka Group's attributable net assets dropped sharply to -6.083 billion yuan, and the asset-liability ratio reached 126.22%.

The 2025 annual report shows that the revenue of the color TV business decreased by 16.62% year-on-year, the white goods business decreased by 7.56%, the semiconductor and memory chip business decreased by 4.69%, and other businesses decreased by 13.2%. Only the PCB business achieved a growth of 10.19%.

As the main business segment of Konka Group, the revenue of the color TV business dropped to 4.192 billion yuan, with a gross profit margin of -2.11%, which means that every TV sold is losing money. The revenue of semiconductor and memory chips was only 162 million yuan, accounting for less than 2% of the total revenue. The revenue of the PCB business was 529 million yuan.

In the first quarter of 2026, the company achieved revenue of 1.932 billion yuan, a year-on-year decrease of 24.08%, and the attributable net profit continued to lose 184 million yuan, a year-on-year decrease of 293.89%. The semi-annual performance forecast shows that the loss margin has narrowed, but the asset-liability ratio continues to rise to 131.09%...

Because the state of insolvency that officially started at the end of last year has not been substantially reversed as of the disclosure of the 2026Q1 financial report, coupled with the audit opinion with a paragraph of major uncertainty about going concern issued by Shu Yongzhong, Konka Group officially wore the "ST" cap since April 30 this year:

Konka Group's A shares and B shares were officially implemented by the Shenzhen Stock Exchange with delisting risk warning superimposed with other risk warnings, and the security abbreviation was changed to *ST Konka A and *ST Konka B. If the company's audited net assets cannot turn positive by the end of 2026, the company's stocks will face the risk of termination of listing.

The main business continues to "lose blood", and there is less than 4 months left before the end of 2026, which means that Konka Group has reached the key sprint stage of "shell protection". The continuous fermentation of a series of litigations has also added new variables to the company's goal of turning net assets positive.

Can Konka Group turn the tide against the wind? Let's wait and see!

References:

Former Manager of Konka Venture Capital Guo Yimian Placed Under Investigation - Manager Magazine

Another Former Senior Executive of Konka Falls From Grace, With An Annual Salary of Nearly 3 Million Yuan - Jiemian News

Suspected of Serious Violations of Discipline and Law, Yang Bo, Former Vice President of Konka Group, Placed Under Investigation - Dahe Daily

Shenzhen Konka Is Sued Again! Involved in Yisquare "Performance Bet Agreement", The Amount of Involved Funds Has Exceeded 700 Million Yuan - Southern Metropolis Daily

Yisquare's IPO Fails, Triggering 2.8 Billion Yuan Equity Transfer Risk, Konka's "Shell Protection" Battle Is Increasingly Severe - Electric Technology

Three Resonances of Financial Report