Kangjia Plans Voluntary Delisting After 34 Years on Shenzhen Exchange, with Losses Exceeding 20 Billion Yuan Over Four Years

Deep News
08/28

Kangjia Group, once China's most iconic television manufacturer and the first industrial enterprise in Shenzhen to surpass 10 billion yuan in annual revenue, has announced plans to voluntarily delist from the stock market after 34 years of trading on the A-share market. The company, which once shared the living room spotlight with actor Chow Yun-fat, revealed its decision on the evening of August 27 alongside its semi-annual report for 2026.

In its announcement, Kangjia Group (*ST Kangjia A, 000016) stated that given its audited net assets at the end of 2025 were negative, its shares had already been placed under delisting risk warnings. According to the relevant provisions of the Shenzhen Stock Exchange Listing Rules, if the company's audited net assets remain negative at the end of 2026, its stock will be terminated from listing by the exchange.

To protect the interests of small and medium shareholders, and in accordance with the exchange's listing rules and other applicable laws and regulations, the board has approved a proposal to voluntarily withdraw both its A-shares and B-shares from trading on the Shenzhen Stock Exchange through a shareholders' resolution. After delisting, the shares will be transferred to the delisted stock board managed by the National Equities Exchange and Quotations.

The voluntary delisting plan includes a cash option for dissenting shareholders. The exercise price for A-shares is set at 2.48 yuan per share, a premium of approximately 6.44% over the closing price of 2.33 yuan before the trading suspension, with the option provided by Panshi Runchuang (Shenzhen) Information Management Co., Ltd. The exercise price for B-shares is 0.73 Hong Kong dollars per share, provided by Hemao Co., Ltd. The record date for A-share cash options is September 22, 2026, which also serves as the last trading day, while the record date for B-shares is September 28.

Public records indicate that Panshi Runchuang is a wholly-owned subsidiary of China Resources Co., Ltd. Kangjia was founded in May 1980 as Guangdong Guangming Overseas Chinese Electronic Industry Company, representing the first Sino-foreign joint venture electronics enterprise established after China's reform and opening-up. The company initially produced tape recorders before building its first color TV assembly line in 1984, and its A-shares and B-shares were listed on the Shenzhen Stock Exchange on March 27, 1992.

At its peak, Kangjia's television sales exceeded 10 million units annually with the highest market share in the industry, solidifying its position as the leading TV brand in China. The company's main operations encompass consumer electronics and white goods, with its consumer electronics segment primarily comprising TV and white goods businesses. Its white goods division produces refrigerators, washing machines, air conditioners, freezers, and dishwashers. Additionally, Kangjia has established a presence in semiconductor optoelectronics and storage, focusing on Micro LED and Mini LED chips, mass transfer, and display technology. Its PCB business operates in a B2B model, supplying metal substrate products, thick copper products, and high-multilayer products to the new energy, automotive electronics, communications, data center, and new consumer electronics sectors.

On July 22, 2025, as part of central state-owned enterprise specialized integration efforts, the original controlling shareholder OCT Group transferred all of its shares to Panshi Runchuang, a subsidiary of China Resources Group. Following China Resources' takeover, the management team has been comprehensively reshaped with CR-affiliated executives. Four of the five non-independent board directors now come from the CR system, and former CR Pharmaceutical Commercial Chairman Wu Jianjun has assumed the role of Kangjia's chairman, leading a team of CR veterans in taking over core positions.

Financial reports reveal that after achieving a profit of 905 million yuan in 2021, Kangjia experienced consecutive losses over the following four years. From 2022 to 2025, the company recorded net losses attributable to shareholders of 1.723 billion yuan, 2.258 billion yuan, 3.726 billion yuan, and 12.582 billion yuan respectively, accumulating total losses of approximately 20.289 billion yuan. The latest semi-annual report shows that in the first half of 2026, Kangjia generated operating revenue of 3.852 billion yuan, down 26.6% year-on-year, with a net loss attributable to shareholders of 173 million yuan. The company attributed the losses to rising costs in the consumer electronics business and the semiconductor business still being in its early industrialization stage.

Amid the substantial financial losses, multiple senior executives of Kangjia have come under investigation. According to the "Huizhou Qingfeng" WeChat official account on August 19, former Vice President Yang Bo is suspected of serious disciplinary and legal violations and is currently undergoing disciplinary review by the Central Commission for Discipline Inspection's discipline inspection group stationed at China Resources Group, along with supervisory investigation by the Huidong County Supervisory Commission. Earlier, on January 29, the same account reported that former Party Secretary and Vice Chairman of the Board Zhou Bin was also under investigation for suspected serious disciplinary and legal violations. On the same day, it was also reported that former Vice President Li Hongtao was facing similar investigations.

Facing the critical challenge of turning net assets positive by the end of 2026, Kangjia has chosen to voluntarily terminate its listing, drawing a definitive conclusion to its 34-year presence on the A-share market.

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