KONKA GROUP's invested company's shareholder loan overdue, multiple measures taken to ensure fund safety

KONKA GROUP announced that its affiliated company, Dongguan Kangyu Hong, is responsible for the Dongguan Kang renovation project, which has a long investment cycle and progress that is below expectations. KONKA GROUP previously provided a loan of 400 million shares to it, and after the equity transfer, 196 million shares remain in existence. After two extensions, the current loan has matured. Due to insufficient funds, Dongguan Kangyu Hong is unable to repay the principal and interest, resulting in overdue loans. As of June 30, 2025, Dongguan Kangyu Hong's net assets are -109.861 million yuan. KONKA has issued a collection letter, established a special team to supervise operations, promote project progress, and negotiate rental property repayments. Although there are risks in starting the project, it is expected not to affect the company's normal operations, and further progress will be disclosed in a timely manner