(Yicai Global) Dec. 21 -- Appliance maker Henan Xinfei Electric Co., which has been facing economic troubles, is looking for investors to help it reorganize, and several firms including Konka Group Co. [SHE:000016] have expressed interest in cooperating.

The management and shareholders of Xinfei Electric as well as the local government of Henan province's Xinxiang city, where the company is based, are on the hunt for backers that can help reinvigorate the brand, but they have not secured any investors, reported The Paper, which is part of the state-owned Shanghai United Media Group.

Three subsidiaries of Xinfei Electric jointly announced a stop to their production last month, saying that due to intense competition, Xinfei Electric has suffered huge losses over the past few years. Although investors have offered funds and support, the company remains bogged down.

Founded in 1994 with investments from government capital and Singaporean investment firm Hong Leong Group, Xinfei Electric is a manufacturer of fridges, freezers and air conditioners. Hong Leong Group has increased its stake in Xinfei Electric several times, providing CNY1.15 billion (USD175 million) in shareholder loans and taking a stake of 90 percent.

Xinfei Electric became one of the leading enterprises in China's refrigerator industry shortly after its founding.