Steel tycoon Yao Mingfang sells house, fails to showcase Longfor's charm

Text/Beijing Jinshen Yan Minghui

The mysterious owner behind Longfor Lingyun Song, although worth billions, has finally “bowed” to the bank.

Before the New Year, Beijing Xin Enxiang Chaojun Real Estate pledged all 3 million shares of Beijing Xin Enxiang Ruizhe Real Estate (Lingyun Song project company) to Ping An Bank Beijing Branch, with the registration date on January 27.

This project alone cost 1.369 billion yuan for land acquisition, with a land price coverage rate of about 9.6%. There are also construction, design, tax, and agency fees, all waiting to be “swallowed.”

Of course, the owner behind Lingyun Song has also invested heavily and generously. Lingyun Song not only has a super interface but is also the first dual-club residential in Changping main city under new regulations. The clubhouse covers 3,300 square meters, with an average clubhouse area of nearly 5.7 square meters per unit.

Despite spending a lot of real money, Lingyun Song’s online signing performance has not been ideal.

After more than three months of verification, under the “OEM” halo of Longfor, Lingyun Song has only 33 online signed units, with a clearance rate of 5.7%, and a transaction amount of 132 million yuan.

These more than 30 units were still obtained through “price-for-volume” strategies.

In December last year, Lingyun Song signed 25 units online, with an average transaction price of 42,288 yuan/㎡;

Entering 2026, in January, the average transaction price for Lingyun Song dropped directly to 40,608 yuan/㎡, resulting in only 8 units signed online.

Price reductions haven’t attracted buyers; the market is so realistic — the more you lower prices, the less people dare to buy.

With only three days left in February, Lingyun Song’s online signed units still show a big zero.

01

Lingyun Song plans 24 residential buildings, including 2 mid-rise, 6 low-rise, and 11 townhouses, totaling 580 units.

Unit sizes range from 78/96/112/139㎡, with a ceiling height of 3 meters.

It’s somewhat ill-timed, hitting the crackdown on “good houses” policies in Beijing. The balcony depth varies between 1 meter and 1.5 meters depending on the size.

However, Lingyun Song has made efforts through space design—offering “more rooms in the same area”—and by embedding balconies, bay windows, corner bay windows, and other赠送面积 (gifted areas), achieving a high utilization rate of over 90%.

The flagship units include the smallest 78㎡ compact three-bedroom and the 96㎡ main three-bedroom units.

Theoretically, these small units should attract more traffic, but Lingyun Song has many visitors, yet actual conversions are not very good.

78㎡ units: a total of 132 units, accounting for about 22.76%, located in the northernmost blocks 1#、2# on the east side, and 3#西侧两个单元、4#.

Currently, 8 units are signed online, with an average transaction price of 41,367 yuan/㎡.

78㎡ units are narrow and elongated, with common issues like poor lighting and ventilation, and the north-facing bedrooms are very small.

96㎡ main units: a total of 260 units, about 44.83%, located in blocks 2#西侧两个单元、3# on the east side, and 6#、7#, 10#、11#, 12#、13#, 16#、17#, 19#、20#, 23#、24#.

Currently, 19 units are signed online, with an average transaction price of 41,881 yuan/㎡.

The 96㎡ units are south-facing with three sides open, featuring a double-cross balcony in the living room and master bedroom, with a depth of 1 meter.

112㎡ units: a total of 128 units, about 22%, near the building king blocks 8#、9#, 14#、15#, 21#、22#.

Currently, 5 units are signed online, with an average transaction price of 42,252 yuan/㎡.

The 112㎡ units face south with a 3.9-meter wide living room, embedded balcony with 1.5-meter depth; both south-facing bedrooms have bay windows, with the master bedroom featuring a large corner bay window; north-facing bedrooms and bathrooms have equipment platforms, 1 meter deep and 5.7 meters wide.

139㎡ units: a total of 60 units, about 10.3%, located in 5#、18#.

Currently, only one unit, 5#1002, has been signed online, with an average transaction price of 43,504 yuan/㎡.

The 139㎡ units are upgraded for improved living standards, with a more square layout, a spacious 5.3-meter wide hall, 1.5-meter deep balconies, larger赠送阳台 (gifted balconies), and a 270-degree corner bay window in the master bedroom.

The main difference is that the 112㎡ units have the door directly facing the dining table, while the 139㎡ units upgrade to an independent entrance hall; additionally, the master bathroom sacrifices some shower space to add double sinks.

02

Back in late July last year, Beijing Xin Enxiang Ruizhe Real Estate acquired the Lingyun Song site at a bottom price of 1.369 billion yuan.

On the same day, Longfor’s designated construction brand Longzhizao announced signing a contract with Hebei Taihang Steel Group & Beijing Enxiang Group to provide project construction management services.

This real estate company is backed by Wuan Mingfang Real Estate (referred to as “Mingfang Real Estate”) and Beijing Chaojun Wanhé Management, holding 99% and 1% respectively.

The second shareholder, Chaojun Wanhé, is held equally by Yao Jun and Li Chao, both low-profile, with little public information about other investments.

The major shareholder, Mingfang Real Estate, is a Hebei private enterprise, a real estate development platform under Hebei Taihang Steel Group, established in 2010 with a registered capital of 60 million yuan, with Sun Zhaoyun as the sole shareholder.

However, intriguingly, the shareholders behind Hebei Taihang Steel Group are not Sun Zhaoyun but Li Wanshun and Zhang Lei.

Whether it’s Sun Zhaoyun, Li Wanshun, or Zhang Lei, they are all external nominees holding the shares of Taihang Steel. The real owner is Yao Mingfang, chairman of Taihang Steel Group, which explains the name “Mingfang Real Estate.”

Industry insiders believe that anonymous shareholders controlling from behind the scenes suggest a lack of confidence among family members in the industry, possibly fearing family entanglement. The presence of many nominees also raises questions about management capability and the existence of numerous unknown nominees, adding uncertainty.

Yao Mingfang is a notable steel industry figure with a compelling story. Records show he dropped out of school in fourth grade due to poverty, started business at age 13, selling cooked food, running clothing stores, transportation, and home appliance businesses.

In 2004, he took over the nearly bankrupt Wuan Taihang Ironworks and transformed it into a private enterprise, Wuan Mingfang Steel Co., Ltd. In August 2009, the company restructured and was renamed Hebei Xin Wuan Steel Group Mingfang Steel Co., Ltd., later becoming Wuan Mingfang Steel Co., Ltd.

Since 2010, the company diversified into real estate and natural gas industries. After 2012, Yao Mingfang gradually handed over management to his son, Yao Fei.

Currently, Yao Mingfang also invests in Wuan Shengshi Real Estate, holding 50%.

This company was fined 208,772 yuan in 2022 for construction violations not complying with planning permits, and an additional 70,000 yuan for failing to transfer project archives after completion.

In the real estate circle, Mingfang Real Estate’s projects are mainly in Xingtai and Wuan, with six subsidiaries including Shenzhen Mingfang Real Estate, Xingtai Longfa Real Estate, Shahe Mingfang Real Estate, Quzhou Mingfang Real Estate, and Wuan Mingfang Enterprise Management.

However, it has little experience in first-tier cities, being a “newcomer.”

How to succeed as a newcomer? Find external support. Yao Mingfang is smart—immediately partnering with Longfor’s Longzhizao in Beijing for construction management. The project is branded as “Longfor Lingyun Song,” which immediately signals to buyers: “This is a top-tier developer’s project.” The perceived value increases by 3-5%.

Yao Fei, chairman of Hebei Taihang Steel Group, bluntly said: “Seeking construction management is because Wuan Mingfang Real Estate’s projects in Beijing need a recognized local brand to operate.”

In other words, steel boss pays, Longfor brands it, and both sides benefit.

Unfortunately, relying on Longfor’s support may not fully realize Yao Mingfang’s real estate dreams.

Lingyun Song’s current situation can be summarized in four words: surrounded on all sides.

The “pursuers” — Longfor Yuyue Haixu in Dongxiaokou, the China State Construction Zhidi project in Xiejia Village, and Xinghuan Times in the future Science and Technology City South District — are already entering the scene at an accelerated pace.

Compared to these “latecomers,” Lingyun Song does not have an advantage in location or supporting facilities. Clearly, winning this battle isn’t just about spending money.