One of China’s most well-known electronic companies, Xinfei, handed in its reorganization application and stopped all of its production lines, sending a signal that this 33-year-old Chinese company is coming to an end. 

Established in central China’s Henan Province in 1984, Xinfei Electronic Co., Ltd, began with manufacturing refrigerators and continued to expand its business in its first ten years of operations. It reach its peak in 1996 when it received a number three ranking and recognition as one of the "four golden flowers" – along with the companies Haier, Meiling and Ronshen – in China's refrigerator manufacturing industry. 

However, after selling three million refrigerators and having a near 20 percent market share in 2005, Xinfei’s performance started to decline and the company was left far behind the three other giants.

It almost went bankrupt twice in 2012 and 2013 as sales plummeted, but luckily was reinvigorated with government support. Although it survived the last two crises, Xinfei couldn't survive another and will finally shut down this year. 

“In [the] past few decades, Henan Xinfei Electronic Co., Ltd has been operating in a highly competitive and challenging environment. Under the pressure of low price strategy from other competitors, it becomes harder and harder for Xinfei to make profits,” said Xinfei’s CEO in his letter to all employees.

Reports show that Xinfei’s retail sales volume was 2.83 percent and its retail sales was 1.07 percent of the Chinese refrigerator market in the first nine months of 2017, according to media outlet GuanCha.

Though a couple of decades ago, customers felt honored to own a Xinfei refrigerator, the company's products are no longer seen with as much prestige. 

Some blame Xinfei’s failure to its confusing brand strategy. The brand name of "Xinfei" or "Frestech” in English was used by the company itself in the refrigerator business, but it also allowed the brand to be used by other companies in the electronic product categories, charging them a brand licensing fee to do so. As a result, the brand's name was cannibalized by the smaller companies, preventing the original "Xinfei" from expanding beyond the refrigerator business.

Meanwhile, Xinfei’s small household electric product line received negative feedback from consumers for poor quality, most likely due to the company's failure to get ready for entering the niche market. 

Xinfei launched a process of structural reform in 2002, which gave away 90 percent of its stock and management rights to Singapore's Hong Leong Group. After this transition, Xinfei’s sales fell dramatically.

Xinfei’s products have recently been quietly taken off shelves.