According to the announcement of the Information Website of National Bankrupt Enterprises' Recombinational Cases on August 15, Shing Fung Furniture (China) Co., Ltd. (also known as Cheng Feng Furniture) was handed over to the administrator on August 14 for the registration and review of bankruptcy claims, and formally entered the bankruptcy liquidation procedure. 

Shing Fung Furniture is a Taiwan, China-Hong Kong, China and Macau, China legal person-owned enterprise registered in Fuqing City, Fujian Province in 1993 by Comwell Group of Hong Kong, China. According to public information, Shing Fung Furniture originated in the 1930s. He's Family's furniture craft has grown through three generations and was inherited by current chairman He Shanxiang. It has been in business for more than 20 years, according to the official website: Shing Fung Furniture (China) Co., Ltd. is a large-scale industrial group company integrating technology, industry, trade and service.

In early 1990, the company moved from Hong Kong, China to the mainland and set up the first Shing Fung Furniture production base, Shenzhen Guanlan Shing Fung Furniture Factory. The products are all sold to Southeast Asian countries. In 1993, the second production base, Shing Fung Decoration Furniture (Fujian) Co., Ltd. and the supporting factory Shing Fung Hardware Steel Factory was settled in Fujian Fuqing Rongqiao Economic Development Zone.

In 2002, the company officially changed its name to “Shing Fung Furniture (China) Co., Ltd.”. In 2015, it has a plant area of more than 60,000 square meters, covers an area of nearly 500 acres, and serves more than 3,000 employees, production and sales personnel, specializing in the production of high-end office furniture, high-end hotel furniture, kitchen furniture. The company has won the “China Famous Brand” and “Top Ten Brands of Chinese Office Furniture” and is one of the outstanding suppliers in the office furniture industry in China.

China Famous Brand Award 

In the past 20 years, Shing Fung Furniture has cooperated with Italy's "NICOLETTI Nikolati" and "caliaitalia Kalia", and the products are exempted from export to the United States, Britain, France, Italy, Australia, Canada, Belgium and the Middle East.

As one of the largest furniture production bases in the Mainland, Shing Fung Furniture is also one of the largest suppliers to the office furniture industry. Shing Fung has been selected into the “green list” of furniture procurement by the government in 2006, and ranked 10th among the top 100 office furniture suppliers in China in 2015.

However, in 2016, a result of a national joint supervision and inspection conducted by the Fujian Quality Supervision Bureau on the quality of 12 types of industrial products showed that a batch of wood furniture-coffee table produced by Shing Fung Furniture was found to be unqualified for the cigarette burning project.

In addition to the flaws in product quality, the financial situation of Shing Fung Furniture also has problems. In recent years, its parent company—Comwell Group has been involved in a large number of litigation disputes involving financial disputes with financial institutions such as banks and labor disputes with employees.

Behind the bankruptcy, there are reasons for the company's own operations, as well as the overall furniture industry downturn.

The loss of Chinese furniture industry enterprises continues to increase

The data shows that by the end of 2017, China's furniture industry has reached 6,000 enterprises above designated size, an increase of 39 compared with the previous year. At the same time, there were 608 loss-making enterprises, an increase of 108 over the same period of the previous year, and the loss was 10.13%. The overall loss of the furniture industry in China has been increasing. The total loss in 2017 has reached 2.25 billion yuan, an increase of 320 million yuan over the same period in 2016. By the first half of 2018, the number of furniture manufacturing enterprises in the country has increased to 6,217, including 958 losses, with a loss of 15.4% and a total loss of 2.06 billion yuan.

However, China's furniture industry income keeps rising

In the first half of 2018, China's furniture industry above designated enterprises achieved a main business income of 392.76 billion yuan, a year-on-year increase of 7%, reaching 43.37% of the 2017 main year's main income.

2012-2018 China Furniture Industry Sales Reports 

(Source: JJgle.com)