On the evening of October 13, Qumei Home Furnishing announced that it was agreed to transfer the company’ s holding subsidiary Henan Evergrande Home Furnishing Industrial Park Co., Ltd. (hereinafter referred to as "Hengda Home Furnishing Industrial Park"). The company (hereinafter referred to as "Henan Evergrande Qumei") 40% equity.

The transaction price was RMB 72 million, and it was dealt with in a way that credits and debts offset each other, and the parties did not hold any objections.

According to investigations, Henan Evergrande Qumei was established in 2017. The legal representative is Xie Wenbin, with a registered capital of 180 million yuan. Its business scope includes the production and sales of cabinets, wardrobes, bathroom cabinet furniture, wooden doors, and wooden floors. As of June 30, Henan Evergrande Qumei’ s total assets were 361 million yuan, and the net assets were 146 million yuan; in 2020, it achieved revenue of 40.371 million yuan and a net profit loss of 16.0295 million yuan; the total revenue in the first half of this year was 34,832,500 yuan, the net profit loss was 7,331,900 yuan.

Before the transfer of the company, Qumei Household held 60% of the shares, and Evergrande Home Furnishing Industrial Park held 40% of the shares. After the transfer, Qumei Household held 100% of the shares. After the completion of the equity transfer, Henan Evergrande Qumei will be changed from a subsidiary of Qumei Household Holdings to a wholly-owned subsidiary of Qumei Household. Qumei Household said that the transaction is conducive to improving the company' s overall operating and management efficiency, optimizing the allocation of resources, and promoting the rapid development of the company's business.

It is understood that in 2017, Evergrande took the lead in establishing the Henan Lankao Evergrande Home Furnishing Alliance Industrial Park project. The total investment of the plan is 10 billion yuan, the first phase covers an area of 4000 mu, and the investment is 4 billion yuan. Oppein, Simon Electric, Nippon Paint and many other well-known home furnishing brands, are committed to building the highest standard and largest brand home furnishing industry park in Asia.

These companies are all core suppliers of Evergrande. Evergrande has established joint ventures with most of them. The basic structure is that Evergrande holds 40% of its shares and household appliances holds 60% of its shares. However, Evergrande' s ambitious project is currently falling apart. Because of "inability to repay the debt," Evergrande had to transfer 40% of the equity of the joint venture to various companies.

It is reported that in addition to Qumei Home Furnishing, Jiangshan Oppein, Sogal, Piano, and Nature Home have also acquired the equity of the company' s holding subsidiaries held by Evergrande Home Furnishing Industrial Park. In addition, Sleemon also mentioned in a survey summary: “We now also hold some Evergrande commercial papers. If Evergrande cannot redeem it in the future, we will consider taking back 40% of Evergrande’ s equity.”