Yingfeng Group Co., Ltd. announced on July 6 its intention to issue the second tranche of its 2026 medium-term notes (for mergers and acquisitions), with a registered amount of 4 billion yuan. The current issuance amount is 600 million yuan, with a 3-year term and an issuance date set for July 8.

The prospectus indicates that the funds raised from this issuance are intended to repay the financial institution loans used by a subsidiary for the acquisition of Jason Furniture(Hangzhou)Co.,Ltd. (SHSE: 603816) and for other working capital loans of the issuer. The proportion of funds allocated for the M&A transaction in this issuance will be no less than 50% of the total issuance amount.

As of the signing date of the prospectus, the total outstanding bond balance for Yingfeng Group and its subsidiaries was 3.4 billion yuan, comprising 1.8 billion yuan in medium-term notes, 600 million yuan in general corporate bonds, and 1 billion yuan in exchangeable private placement bonds.

As of the end of March 2026, Yingfeng Group's interest-bearing debt balance stood at 48.465 billion yuan, accounting for 68.81% of its total liabilities. Of this, 26.747 billion yuan is due within one year, representing 55.19% of the total. The issuer faces significant short-term debt repayment pressure and certain concentrated repayment risks.

The controlling shareholder and ultimate controller of Yingfeng Group is 58-year-old He Jianfeng. He Jianfeng is the son of He Xiangjian, the ultimate controller of Midea Group, and is also a member of the board of directors of Midea Group. From 1995 to 2004, He Jianfeng left Midea to embark on his first phase of entrepreneurship, during which his businesses were primarily represented by OEM manufacturing.

Since January 2004, He Jianfeng has progressively divested from industries dominated by OEM manufacturing, gradually forming Yingfeng Group's organizational structure spanning five sectors: manufacturing, consumer retail, finance, environmental protection, and culture.

The home furnishing industry is part of Yingfeng Group's strategic layout in the consumer sector. Since 2023, Yingfeng Group has taken stakes in Jason Furniture(Hangzhou)Co.,Ltd. and Sofia Home Furnishings Co., Ltd. (SHE: 002572). Compared to the acquisition prices, the share price of Jason Furniture has fallen by nearly 40% over approximately two and a half years, while Sofia's share price has dropped by nearly 60% over about half a year.

On November 9, 2023, Yingfeng Ruihe Investment Management Co., Ltd. (Ningbo), a wholly-owned subsidiary of Yingfeng Group, signed a share transfer agreement with the original ultimate controller of Jason Furniture, Gu Jiangsheng, among others. The agreement involved acquiring a 29.42% stake in Jason Furniture at 36.72 yuan per share for a total consideration of 8.88 billion yuan, making it the largest shareholder. The share transfer procedures were completed in January 2024.

As of February 4, 2024, the issuer had fully paid the acquisition consideration using monetary funds. Of the acquisition funds, bank loans amounted to 5.041 billion yuan, accounting for 56.77%, while internal funds were 3.203 billion yuan, accounting for 43.23%. As of the prospectus signing date, the outstanding balance of the bank loans from the aforementioned acquisition funds was 5.012 billion yuan, with no other financing.

The prospectus shows that Yingfeng Group plans to increase its shareholding through a subsequent private placement of approximately 1.997 billion yuan. Upon completion of this issuance, the total stake in Jason Furniture controlled by Yingfeng Group's ultimate controller, He Jianfeng, through Yingfeng Ruihe Investment and the issuer, will change to 37.39%. As of the prospectus signing date, the private placement has not yet been completed.

Yingfeng Group stated that its strategic acquisitions in the home furnishing industry aim to create a synergistic "home appliances-home furnishings" strategic landscape with Midea Group, building a "whole home" ecosystem. In addition to Jason Furniture, Yingfeng Group has also acquired the home furnishings brand Sofia Home Furnishings Co., Ltd..

On November 28, 2025, Sofia announced that it had signed a share transfer agreement with Yingfeng Ruihe Investment on that day. The agreement involved the transfer of 10.7690% of the company's total shares at a transfer price of 18 yuan per share, with a total consideration of 1.867 billion yuan. On December 25, 2025, Sofia announced again that He Jianfeng, through Yingfeng Group and Yingfeng Ruihe Investment, held a combined 12.7173% of the company's shares, and the transfer registration had been completed.