On May 15, Red Star Macalline announced that the company's controlling shareholder, Red Star Holdings, successfully issued exchangeable bonds and was fully subscribed by Alibaba for RMB 4.359 billion. After the exchange of debts, Alibaba will receive A shares of Red Star Macalline in the total share capital of about 10%. At the same time, Alibaba acquired a 3.7% stake in Red Star Macalline in Hong Kong stocks.
At this point, China home furniture industry's two giants - Easy Home, Red Star Macalline, all reached a strategic cooperation with Alibaba.
On February 11, 2018, Alibaba announced that it has joined hands with 16 investors to invest more than 13 billion yuan in Easy Home. Among them, Alibaba and related investment invested 5.453 billion yuan into Easy Home, and Alibaba held 15% of its shares，the second largest shareholder of Easy Home.
At the same time as the subscription of the bonds, Alibaba also signed a framework agreement with Red Star Macalline: the two parties agreed to conduct business cooperation in furniture building materials and home shopping malls, shopping centers and other business areas.
Red Star Macalline said that in order to promote the business cooperation between the two parties as soon as possible, the controlling shareholder Red Star Holdings promised to promote and encourage its major holding subsidiaries (including the company) to negotiate specific cooperation with Alibaba, and before May 28 ( Including) the company and Alibaba signed the relevant agreement.