Another color TV giant declines, with a loss of 1.2 billion yuan a year. How many years have Konka experienced?

Kangka, which looks like a counterattack, may not have come out of the quagmire. Recently, Konka Group Co., Ltd. (hereinafter referred to as "Shen Konka A", 000016.SZ) announced that it intends to transfer 70% of the shares held by Hongqiao Jiacheng Company and the listed price will not be lower than 4.145 billion yuan. This plan will be approved by the general meeting of shareholders. This involves the land of Konka’s old factory, which has been “expensive” in Shenzhen.

This is just one of the assets that Shenzhen Konka A has recently cleared. In addition, Shenzhen Konka A is still selling other assets. All sorts of phenomena have to make the outside world suspect that as the former color TV industry giant, the capital chain of Shenzhen Konka A is so tight? This may have to be said more than a decade ago.

Konka’s predecessor was “Guangdong Overseas Chinese Electronic Industry Co., Ltd.” approved by the state in 1979. It is a Sino-Hong Kong joint venture with a first phase investment of HK$43 million, a Chinese party holding 51%, and a Hong Kong shareholding of 49%. In November 1980, the board formally determined that the product trademark was KONKA Konka.

When it comes to Konka, even in the history of the development of the Chinese home appliance industry, of course, the name of Chen Weirong cannot be bypassed. In 1978, Chen Weirong walked into the classroom with his open-toe liberation shoes. He came from the countryside of Luoding, Guangdong Province, and was restored to the college entrance examination. He changed his destiny. Later, Chen Weirong, who graduated from radio engineering at South China University of Technology, was assigned to Shenzhen Konka Electronics Co., Ltd. after graduation.

Where he was from the technician step by step start, from the technician to sit on the Konka president throne, he has gone through 12 years; rise to the president high, he led Konka through the most glorious course. In 1993, Chen Weirong led Konka to make efforts to expand the national territory. Chen Weirong's pursuit of all the tops allowed Konka to develop rapidly, and Chen Weirong’s career has also steadily increased.

In the last years of the 20th century, Chen Weirong’s career reached its peak: In 1992 Konka’s total assets were only 549 million yuan. By 1998, Konka Color TV’s domestic retail market share occupied the first place in China’s leap and succeeded in surpassing Changhong. Become the "first brother" at that time, 10.5 billion in sales, the achievement of Konka TV's terrorist dominance that year, by the first half of 2000 this figure has grown to 8.913 billion yuan.

However, by May 2001, Konka announced a loss of nearly 700 million yuan. As a result of rumored rumors, along with huge losses, Chen Weirong and the major shareholder of OCT Huaqiao City had a rift and chose to leave the business. Vice President Liang Rong took over the new president of Konka.

After Chen Weirong left, he began to embark on the road to entrepreneurship. Shenzhen Yitong Technology Co., Ltd. was established. However, with the dramatic changes in the market, Chen Weirong's Yuyang Holdings and Yitong Technology did not seize the trend further, and Chen Weirong’s desire to make a transnational name has not been realized. After 2011, Chen Weirong almost faded out of public view. Some people say that he has long retired.

By 2015, Konka's high-level infighting has led to a greater impact on Konka's cohesion, employee morale, product planning strategy, and operating efficiency. Six managers of the group, one chairman of the board of directors, and one supervisor announced their resignation.

At the same time, Konka lacks core technologies and is caught in a low R&D dilemma. Konka financial report shows that in the first half of 2016, Konka Group's R&D investment was only 88 million yuan, a year-on-year decrease of 15.56%, and R&D investment accounted for the proportion of revenue for the fourth year in a row, not exceeding 1.3%, far below its competitors such as Hisense and TCL. In 2015, Konka suffered the largest loss in history. The annual report showed that the net loss attributable to shareholders of listed companies was as high as 1.257 billion yuan, down 2488.32% year-on-year.

Today's Konka has been losing money for seven consecutive years due to prolonged infighting. Color TV giant Konka is in deep sleep, and it has been difficult to wake up. Liu Buchen, an analyst in the home appliance industry, said Konka’s Konka was the best time for Konka. Perhaps, for Chen Weirong, the Konka period is also the most glorious period of his life.