AutoBeta(AutoBeta.net)12/14 Report--

On December 13, Lifan released its latest production and sales report. Data show that in November this year, the production and sales of Lifan's traditional passenger cars were 122 and 73 respectively, down 97.74% and 98.59% from the same period last year. The production and sales of new energy vehicles were 452 and 441 respectively, down 60.28% and 67.67% from the same period last year. From January to November, the cumulative production and sales of Lifan vehicles were 18265 and 22134, down 77.85% and 74.97% respectively. The cumulative production and sales of new energy vehicles were 2715 and 2899, down 68.17% and 65.78% from the same period last year.

There has also been a serious decline in the motorcycle field, which is in great contrast with last month. The production and sales of motorcycles in November were 39155 and 44521 respectively, down 17.57 per cent and 15.81 per cent year-on-year, respectively, down 16.17 per cent and 10.95 per cent from January to November, respectively.

It is worth noting that on the day the production and sales data were released, Lifan Motor announced that a total of five bank fund-raising accounts of the company (including subsidiaries) had been frozen, with a total frozen amount of 290400 yuan, accounting for 0.0039% of the company's net assets. the main reason for the account freeze is due to the company's overdue guarantee, contract disputes between some companies and subsidiaries, creditors taking litigation, property preservation and other measures.

Lifan said that because of the small balance of the frozen funds, it would not have a significant impact on the use of the funds raised by the company.

In October, an email from Ping an Bank's internal risk review spread in the car circle, indicating that four Chinese car companies, including Lifan Motor, would enter bankruptcy proceedings by the end of the year.

For this rumor, Lifan quickly refuted the rumor, but Lifan also admitted that the current company has a high debt ratio, capital flow pressure and other problems, according to the current situation of China's automobile industry, the future development may face challenges.

According to Lifan's latest financial results, Lifan 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 belonging to shareholders of listed companies was-2.633 billion yuan, down 2064.56% from the same period last year. According to the November announcement of Lifan Automobile, the cumulative amount of litigation (arbitration) involved has reached 2.03 billion yuan.

Lifan Motor is very important to the development of Chongqing. In order to save Lifan Motor, the Chongqing municipal government helped Lifan Motor set up a debt committee, requiring banks to "do not draw loans, do not hold down loans, and keep lending." Lifan Motor also said that it would try its best to resolve the crisis with the support of the government.

It is understood that Lifan Motor was first founded in 1992, is a motorcycle family to get rich company, in 2006 Lifan Automobile officially entered the automotive industry development, there are also 13 years.

However, after years of development, Lifan has disadvantages in technology, product strength and service, resulting in the gradual deterioration of the car market, unable to form its own advantages. at present, Lifan is facing a huge debt crisis. there has also been a serious decline in car production and sales, and a number of companies have filed a lawsuit to the court to ask Lifan to repay the debts owed. Chongqing Municipal Government provides a glimmer of survival for its survival, but in the market environment of survival of the fittest, it is still unknown whether it can tide over the difficulties.

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