Konka Signs 14 Billion Strategic Cooperation Agreement With Yuzhou City Government One Billion Will Invest In Zhangzhou Huike Optoelectronics Project
May 25, 2018
On May 21st, Shenzhen Konka A announced today that it has signed a strategic cooperation agreement with the Ganzhou Municipal People’s Government to implement the “tech+industry+urbanization” expansion plan. The cooperation projects include Konka Smart Appliances. And equipment industry park, Ankang smart factory, Konka Group Science and Innovation Center, Konka Minghu Kangyang Town, Optoelectronics Industry Fund (the fund will invest in Zhangzhou Huike Optoelectronics Project), Konka new retail headquarters and other projects, plans a total investment of about 14 billion yuan.
Specifically, Konka Smart Home Appliances and Equipment Industrial Park (including Ankang Smart Factory) has a total planning area of approximately 1,100 mu (specifically based on the actual land supply area), and the planned total investment is approximately RMB 6 billion, mainly to construct the Ankang smart factory, The core parts and components of home appliances, investment projects for manufacturing smart health terminals, and related strategic emerging industries and core components. According to the announcement, the company expects to invest approximately RMB 1.9 billion in the construction of the Ankang smart factory and plans to relocate Anhui Konka Electronics Co., Ltd., one of the color TV production bases, to the Konka Smart Home Appliances and Equipment Industrial Park and build it into a smart factory. Other projects of Konka's smart home appliances and equipment industrial park are expected to be jointly constructed by the company and other companies.
Secondly, the Kangjiaming Lake Kangye town plans to develop an area of 4 square kilometers, with a total investment of about 6 billion yuan. We will build ecological wetland parks, parent-child holiday bases, health care and nursing complexes, high-end physiotherapy centers, catering and health centers, hotels and wetland exhibition halls.
Third, Konka Group's Science and Innovation Center plans to occupy a total area of 136 mu, with a total investment of over one billion yuan, and will be invested and constructed in two phases.
Fourth, in order to support the development of major industrial projects in Quzhou City, Konka plans to invest RMB 1 billion in the Huike Industrial Fund initiated by Shengzhou Construction and Design Investment Co., Ltd. The fund will invest in Zhangzhou Huike Optoelectronics Project.
Fifth, the new retail headquarter project of Konka is planned to relocate Shenzhen New Retail Headquarters to Zhangzhou and build an emerging retail business system in Zhangzhou Economic Development Zone to sell value-added products such as color TV sets, color TV accessories, peripherals and service.
According to the announcement, the signing of this strategic cooperation agreement is in line with the Company's strategic development needs and is conducive to the long-term development of the company. Because the project implementation requires a certain period, it is expected that the performance of the agreement will have no significant impact on the company's financial status and operating results for 2018. It is expected that there will be some impact on the company's financial status and operating results in the future.
