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Eric Ng

Shenzhen Konka has made its first foray into the e-commerce sector in a venture with diversified parent Chinese Town and sister company Chinese Town Property.

The three companies are to inject 30 million yuan (about HK$28.08 million) into newly established Shenzhen Konka Allied Electronic Commerce (SKEC) - a flagship for their e-commerce business.

SKEC is held 60 per cent by Shenzhen Konka, 25 per cent by Chinese Town, 10 per cent by Chinese Town Property and 5 per cent by other firms.

A-share Chinese Town has a stake of more than 50 per cent in A-share Shenzhen Konka, and wholly owns Chinese Town Property. It also has an interest in a travel agency.

Last weekend, SKEC launched a Web site selling Shenzhen Konka consumer electronic products, and it plans to roll out Internet travel booking and property sales services soon.

Shenzhen Konka spokesman George Chen Yaguang said products that can be purchased on-line included television sets, mobile phones, air-conditioners, refrigerators and digital versatile disc players.

Customers can make on-line purchases by using debit cards and SKEC will settle payment through the Bank of China and China Merchant Bank, he said.

Mr Chen said recent completion of the installation of a second production line had boosted Shenzhen Konka's annual mobile-phone production volume from 600,000 units to one million units.

Shenzhen Konka had said last November it planned to invest more than 500 million yuan in the telecommunications industry over the next three years.

The firm is one of nine mainland companies chosen as pioneers to recapture the mobile-phone market dominated by foreign producers.



Konka launches own-brand site