AutoBeta(AutoBeta.net)11/15 Report--

On November 15, Lifan released its latest production and sales report. Data show that in October this year, the production and sales of Lifan's traditional passenger cars were 53 and 29 respectively, down 98.71% and 99.25% year on year, respectively. The cumulative production and sales of traditional passenger cars from January to October were 18142 and 22061, respectively, down 76.46% and 73.50% from last year.

In terms of new energy vehicles, production and sales in October were 420 and 423 respectively, down 62.37% and 64.15% from the same period last year. The cumulative production and sales from January to October were 2263 and 2458 respectively, down 69.38% and 65.42% from the same period last year.

It is worth noting that although there has been a sharp decline in car sales, there has been an increase in motorcycle sales. In October this year, production and sales were 51649 and 49569, respectively. Compared with the same period last year, the cumulative production and sales of 19.30% and 40.48% of these vehicles from January to October were 493137 and 493401, respectively, down 16.06% and 10.48% from the same period last year.

The sharp decline in sales has a lot to do with being exposed by the media in October to enter bankruptcy proceedings at the end of the year.

In October, there were media reports that four Chinese car companies, including Lifan Motor, would enter bankruptcy proceedings at the end of the year, which is expected to involve an industry chain of upstream and downstream auto parts suppliers totaling about 50 billion yuan of bad debts.

Then Lifan issued a clarification announcement, saying that the report is not true, the company currently has no bankruptcy plan, the company has high debt, and the pressure on capital liquidity is high. According to the current situation of China's automobile industry, the future development may face challenges. The company will also actively take a variety of measures to reduce risks.

Although it has not yet reached the boundary of bankruptcy, the operating situation of Lifan Motor is not optimistic.

According to the financial results released by Lifan Motor, Lifan Motor achieved 6.686 billion yuan in operating revenue in the first three quarters of this year, down 19.52 percent from the same period last year. The net profit was 2.633 billion yuan, compared with a profit of 134 million yuan in the same period last year.

In early November, CCTV visited the production base of Lifan Automobile and found that the production base of Lifan Automobile almost came to a standstill and owed employees' wages.

It is understood that the current Lifan models on sale can be said to be pitifully few, fuel vehicles are only Maiwei and Xuanlang, including several models on sale, and there has been no upgrading for a long time, new energy models are also weak, little interest.

Lifan has gone through 27 years since its inception, has been involved in automobile manufacturing for 13 years, and is now facing a huge crisis. Lifan not only suffered a sharp decline in sales, the company also suffered a large number of lawsuits, many auto parts suppliers and financial companies sued Lifan for huge sums of money.

Lifan shares have said that both cars and motorcycles are Lifan's main business and will not give up either side, but at different times, the focus will be on the motorcycle industry.

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