Jason Furniture to raise nearly 2bn yuan in equity for expansion, R&D

Jason Furniture Hangzhou is set to issue equity to specific objects, primarily its indirect controlling shareholder, Yingfeng Group, aiming to raise up to 1,996,990,600 yuan. The funds will be allocated to several key projects including intelligent upgrades for home furnishing production lines (199,920,000 yuan), expansion of functional iron frame production lines (150,093,500 yuan), smart home product R&D (151,580,000 yuan), AI and retail digital transformation (394,497,100 yuan), and brand building (100,900,000 yuan), with the remainder supporting working capital. These investments are projected to enhance production efficiency and strengthen the company’s competitive edge.

The company's controlling shareholder, Yingfeng Group, will subscribe to the issuance, thereby increasing its stake and ensuring stability of control. Yingfeng Group has committed to a 36-month lock-up period for the newly acquired shares. A recent announcement also indicated that shares held by Hangzhou Deye Jiajun Enterprise Management Co. Ltd., an affiliate of Yingfeng Group, totaling 88,471,483 shares (10.77% of total share capital), are subject to a rotating freeze due to a creditor's claim of 434,000,000 yuan. However, this is not expected to affect the company's control or daily operations.

The issuance follows a period of stable stock performance, with the share price rising 30.05% since the pricing benchmark date, aligning with industry trends and the company’s solid fundamentals.