Once a dominant force in China's television manufacturing sector, Konka Group is now opting for a voluntary exit from the stock market instead of waiting for a compulsory delisting. On the evening of August 27, *ST Konka A (000016) announced that, given its negative audited net assets at the end of fiscal 2025, the company had already been placed under delisting risk warning. 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 the 2026 fiscal year, its shares will face termination of listing by the exchange.

The announcement stated that, to protect the interests of minority shareholders and in accordance with applicable laws, regulations, and normative documents, the board of directors has approved a plan to voluntarily withdraw both its A-shares and B-shares from trading on the Shenzhen Stock Exchange through a shareholder resolution. Following the delisting, the company intends to apply for its shares to be transferred to the delisted stock trading platform managed by the National Equities Exchange and Quotations (NEEQ) for small and medium-sized enterprises.

Regarding protection mechanisms for dissenting and other shareholders, the company said it would establish measures to fully safeguard investor interests. The exercise price for A-share cash options is set at RMB 2.48 per share, while B-share cash options are priced at HKD 0.73 per share.

Nearly 20 billion yuan in cumulative losses over four years

On April 30, due to the negative audited net assets at the end of fiscal 2025, the company was subjected to delisting risk warnings and other risk alerts, with its stock name changing from "Shenzhen Konka A" to "*ST Konka A". Public records show that Konka Group was founded in 1980 as the first Sino-foreign joint venture electronics enterprise established after China's reform and opening-up. The company initially focused on producing tape recorders and built its first color TV assembly line in 1984. In 1992, Konka was listed on the Shenzhen Stock Exchange as the "first stock in the color TV industry." At its peak, Konka's annual TV sales exceeded 10 million units, capturing the largest market share and earning the title of "King of Color TVs."

However, in recent years, with rapid technological advancements in the TV industry and significant shifts in the competitive landscape, the company has gradually lost its competitive edge, and its color TV business has contracted year after year. After reaching a historical peak in revenue of RMB 55.119 billion in 2019, the company's top line began a steady decline. Revenue fell below the RMB 20 billion mark in 2023 to RMB 17.849 billion, continued its steep slide to RMB 11.115 billion in 2024, and shrank to under RMB 10 billion by 2025.

In terms of net profit, the company recorded losses of RMB 1.47 billion, RMB 2.164 billion, RMB 3.296 billion, and RMB 12.582 billion in 2022, 2023, 2024, and 2025 respectively, with losses widening each year and totaling approximately RMB 20 billion over the four-year period.

Facing these difficulties, Konka Group underwent a change in control. In 2025, control of the company was transferred to China Resources, a state-owned conglomerate, which initiated a series of capital injections and supportive measures. Nevertheless, these efforts have so far yielded limited results. According to the interim report for the first half of 2026, the company posted operating revenue of RMB 3.852 billion, down 26.60% year-on-year, while its net loss attributable to shareholders narrowed to RMB 173 million from a loss of RMB 383 million in the same period last year.

Explaining the causes of the losses, Konka stated that in the first half of 2026, its consumer electronics business faced continued volatility in the upstream supply chain, with rising product costs. Adjustments in product mix and pricing strategies failed to effectively offset the pressure from cost increases, further squeezing gross profit margins. Although period expenses continued to be optimized, gross profit generation was insufficient to cover these expenses, leaving operating profit in a loss-making state. Meanwhile, the company's semiconductor business remains in the early stages of industrialization. Although some products have achieved commercial sales, the segment has not yet reached scale or profitability, and the overall semiconductor operations remain in the red.

Rise in voluntary delistings

According to incomplete statistics from IPO Daily, since the start of 2026, a total of 21 listed companies have completed delisting proceedings. Among these, four were compulsorily delisted for major violations of the law, one was a voluntary delisting, three were delisted for failing to meet market capitalization requirements, and 13 were delisted for financial reasons under mandatory delisting rules. Notably, the scenario of trigger delisting due to share prices staying below RMB 1 for 20 consecutive trading days has not yet occurred this year, a marked difference from previous years. By exchange, 10 companies were listed on the Shanghai Stock Exchange, 9 on the Shenzhen Stock Exchange, and 2 on the Beijing Stock Exchange.

In recent years, the number of companies opting for voluntary delisting has grown markedly. Earlier this year, logistics firm Deppon Logistics Co., Ltd. (603056.SH) voluntarily delisted, with one of the core reasons being related to a non-competition commitment made during JD Logistics' acquisition. On September 6, 2022, JD Zhuofeng committed that within five years from the completion of the previous tender offer, it would adopt feasible measures to resolve the horizontal competition issues between JD Logistics and Deppon.

During 2025, four companies completed voluntary delistings, including one that was absorbed through a merger: Yulong Co., Ltd., AVIC Industry-Finance Holdings, Haitong Securities, and Tianmao Group. Before applying for voluntary delisting, Tianmao Group had already issued multiple risk warnings about possible termination of listing, with four consecutive years of declining earnings and losses in the most recent two years. Meanwhile, both Yulong Co., Ltd. and AVIC Industry-Finance Holdings experienced varying degrees of performance deterioration.