Konka secures 5 bn yuan perpetual debt from controlling shareholder

Konka Group announced its intention to obtain perpetual debt financing of up to 5 billion yuan from its controlling shareholder, Panshironchuang (Shenzhen) Information Management Co., Ltd. The financing will have no fixed term, an initial tenor of three years, and an annual interest rate based on the LPR, adjustable every 12 months. This initiative aims to improve Konka’s capital structure, reduce its asset-liability ratio, and enhance its ability to manage financial risk.

The transaction, classified as a connected transaction, was approved by Konka’s eleventh board of directors at its sixth meeting on November 28, 2025. Five directors voted in favor and four abstained due to their connected status. Independent directors also approved the proposal. The financing agreement stipulates that Panshironchuang's claim on principal and interest will be subordinated to Konka Group's ordinary debts.

This transaction is subject to shareholder approval, with Panshironchuang and its affiliates abstaining from the vote. As of July 2025, Konka Group had outstanding borrowings of 2.17 billion yuan from Panshironchuang, incurring 16.46 million yuan in interest, bringing the total connected transactions with Panshironchuang to 24.97 million yuan.