Konka Group sanctioned for inaccurate 2018 financial reporting

Konka Group Co., Ltd. announced on December 26, 2025, that it received a warning letter from the Shenzhen regulatory bureau of the China Securities Regulatory Commission and a regulatory letter from the Shenzhen Stock Exchange. The sanctions relate to the company's 2018 semi-annual report, which contained inaccurate information regarding the sale of a 5% equity stake in Anhui Kaikai Vision E-commerce Co., Ltd. in June 2018. The transaction did not meet the conditions for recognizing investment income, leading to misstated financial disclosures.

The Shenzhen regulatory bureau found that Konka Group's actions violated accounting standards and information disclosure measures. Former chairman Liu Fengxi, former general manager Zhou Bin, and former chief financial officer Li Chunlei were deemed primarily responsible.

The company and its relevant personnel have committed to rectifying the issues, enhancing compliance awareness, and strengthening financial and accounting management systems to improve disclosure quality and protect shareholder interests. The administrative regulatory measures will not affect the company's normal business operations.