China's internal and external difficulties, Konka's loss of 1.257 billion yuan

Recently, Shenzhen Konka A released its 2015 annual report. Its operating income was 18.395 billion yuan, a year-on-year decrease of 5.29%. Net profit attributable to shareholders of listed companies was -1.257 billion yuan, a year-on-year decrease of 2488.32%. Net profit attributable to shareholders of listed companies during the same period of last year was 5262. Ten thousand yuan.

The outside world has a certain degree of psychological expectation for Konka’s loss in 2015. The 2015 Konka semi-annual report showed that the loss was nearly 300 million yuan. By the third quarter, it had already risen to a loss of 850 million yuan.


Shenzhen Konka A stated that during the reporting period, Konka needed to repatriate 89.96 million yuan of energy-saving subsidies and generate irrecoverable net national energy-saving subsidies for book receivables of 132 million yuan. The above-mentioned matters will reduce the total profit of the company's consolidated statements by 222 million yuan. yuan. Second, due to the issue of exchange rate fluctuations, exchange losses totaled about 229 million yuan in the year.

However, the main reason for the loss of Konka is still the frequent fluctuations of the management of Konka in 2015. The first quarter of 2015, Konka's financial report shows that the company is still in a state of balance. With the continuous turmoil of the management team in the middle of last year, Konka has started the "domestic fighting" internal friction mode.


At the Shenzhen Konka Annual General Meeting of Shareholders held on May 28 last year, small and medium shareholders increased their holdings through the secondary market, winning 4 board seats in one fell swoop, breaking the situation in which the major shareholder of OCT led the board of directors. Afterwards, OCT regained control of Konka by drawing from small shareholders. In the management shakes that lasted for nearly six months, high-level personnel struggles have been removed and middle-level managers have also experienced great fluctuations. Business mobilization and personnel replacement have caused Konka’s internal distractions.

In the Konka Annual Report, we also mentioned that the management of the company, especially the management of the domestic color TV business, has undergone frequent changes, which has brought a greater impact on corporate cohesion, employee morale, product planning strategies, and operating efficiency. Due to changes in management, the company made two adjustments to the product plan in the third quarter and fourth quarter, which had an adverse effect on the company’s product sales.


Excluding internal factors, according to data from Ovid Cloud Network, the global color TV shipments reached 230 million units in 2015, a decrease of 2.5% year-on-year. With the popularity of smart TVs, the television industry has entered a new phase of the stock market.

Behind the development history of domestic TV brands is a fierce price war. After sufficient market competition, only a few TV brands survive. However, in recent years, the competition in the television industry has entered a new situation. Transboundary Internet TV companies have stirred up the entire TV market with lower prices and higher cost performance.

Although Konka suffered a loss of 1.2 billion yuan in 2015, both the crisis and the challenge coexist. Just as the choice of plasma and liquid crystal technologies made LCD TVs buried Panasonic, the current TV industry is at the crossroads of the next technology choice. If Konka is focused on R&D and advancement of next-generation display technologies, there will still be opportunities for overtaking in the future.


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