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On January 14, Lifan released the production and sales of KuaiBao in December 2019. Data show that the production and sales of Lifan traditional passenger cars in December 2019 were 333 and 402 respectively, down 93.01% and 88.88% from the same period last year. The production and sales of new energy vehicles were 173,192, respectively, down 88.25% and 88.43% from the same period last year. In 2019, the cumulative production and sales of Lifan vehicles were 18598 and 22536, down 78.62% and 75.52% respectively. The cumulative production and sales of new energy vehicles were 2888 and 3091, down 71.12% and 69.49% from the same period last year.

Due to the decline in sales, performance losses, factory shutdown and other reasons, Lifan Motor fell into a huge crisis.

According to Lifan's latest financial results, Lifan achieved 6.686 billion yuan in operating revenue in the first three quarters of 2019, 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 announcement of Lifan Motor in November 2019, the cumulative amount of litigation (arbitration) involved has reached 2.03 billion yuan.

On December 17, 2019, 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, due to the company's special accounts for raising funds set up by the previous non-public offering shares have 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 Motor also said in an announcement that 378.92 million yuan was due on July 6, 2018 and could not be returned to the fund-raising account temporarily because the company's liquidity was tight. Another 60 million yuan will expire on April 13, 2010. as the fund-raising account has been frozen, there is also some uncertainty about whether it can be returned on time.

In the case of continuous decline in car sales and poor performance, as a motorcycle-based company, Lifan Motor is no longer keen on the auto business. Lifan said in its 2019 semi-annual report that the company will put the motorcycle business in the first place, followed by new energy vehicles.

It is understood that Lifan shares entered the passenger car industry in 2006, and it has been 14 years. However, Lifan automobile has some disadvantages in technology, products and services, and its development has not formed its own advantages for many years. Xu Haidong, assistant secretary general of the China Automobile Association, said: "Lifan still has deficiencies in the core competence of building cars, and new energy vehicles are the future strategy, and it is hopeless to be used as an 'emergency' now."

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.

Affected by the cold winter of the car market, the market decline and other factors, the overall automobile market in 2019 showed a downward trend, the vast majority of car companies in this year are very unhappy. In the depressed market environment, the decline in sales is also inevitable. At present, Lifan Motor is facing a huge crisis, production, sales and performance have both declined, and a number of suppliers have filed a lawsuit to the court. The Chongqing government has provided a glimmer of survival for Lifan, but if there is no actual improvement, I am afraid it will not be able to escape the fate of elimination.

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