AutoBeta(AutoBeta.net)12/18 Report--

Sales decline, performance losses, factory shutdown, deep debt, Lifan suffered the biggest crisis in history. On December 17, Lifan shares announced that the company used 449 million yuan of idle funds raised by the previous non-public offering shares to temporarily replenish 10 million yuan of the working capital on December 17, 2019. Because the special account of raising funds opened by the company related to the previous non-public offering shares has all been frozen, in order to ensure the safety of the company's funds, it is temporarily unable to return to the raising fund account.

In addition, Lifan due to financial constraints, part of the funds raised before has not yet been bad, delinquent so far. In the announcement, Lifan said that the company still had 379 million yuan due on July 6, 2018, and could not be returned that year due to lack of funds. At the same time, there is still 60 million yuan due on April 13, 2010. now that the fund-raising account is frozen, there is also uncertainty about whether it can be returned on time.

Lifan's auto business has almost come to a standstill. According to the sales report, Lifan sold 22134 traditional passenger cars from January to November, down 74.97 percent from the same period last year, while new energy vehicles sold 2899 vehicles, down 65.78 percent from the same period last year.

According to a field survey conducted by CCTV Finance in early November this year, Lifan has two automobile production bases in Chongqing, and Lifan Automobile production Base in Liangjiang New area has completely stopped production. the base was sold to the Land Reserve renovation Center of Liangjiang New area in Chongqing in December last year at a purchase price of 3.315 billion yuan. At another passenger car production base in Beipei District (the third factory), many workers said that they had been in semi-shutdown since the beginning of this year and had owed employees nearly two months' wages. One worker said, "if we don't produce cars, we won't produce cars any more, and the factory has collapsed."

In terms of performance, Lifan shares achieved an operating income of 6.686 billion yuan and a loss of 2.633 billion yuan in the first three quarters of 2019. Lifan shares lost 947 million yuan in the first half of this year, meaning that Lifan lost 1.686 billion yuan in the third quarter alone.

Lifan shares announced on July 26 that the cumulative amount of litigation (arbitration) not disclosed by Lifan shares in the past 12 months reached 1.423 billion yuan. litigation cases mainly include financial loan contracts, factoring contracts, financial leasing contracts and other disputes.

Lifan responded to the problems of performance and debt. Lifan said that at present, the company has high debt and capital liquidity pressure. According to the overall situation of China's automobile industry, the future development may face challenges, and the company will actively take a variety of measures to reduce risks.

It is reported that the Chongqing municipal government earlier convened the local financial office and relevant banking institutions creditors to help Lifan Automobile Organization set up a debt committee, requiring banks to "do not draw loans, do not suppress loans, continue to lend." This gives Lifan a chance.

Lifan automobile business is almost on the verge of being abandoned, and it has entered the passenger car industry since 2006. if there is no way to improve, Lifan automobile may not escape the fate of being eliminated by the market.

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