AutoBeta(AutoBeta.net)06/20 Report--

In 2020, the news of restructuring and mergers and acquisitions of automobile enterprises broke out frequently. Recently, it has been reported that Geely Group intends to own Lifan shares.

In response to this matter, Geely said that "there is no such thing".

Lifan Industrial (Group) Co., Ltd. issued a clarification announcement on media reports. After verifying with the actual controllers Yin Mingshan, Chen Qiaofeng, Yin Xidi, Yin Suowei and controlling shareholder Chongqing Lifan Holdings Co., Ltd., the company confirmed that the relevant media rumors were not true and had not discussed the acquisition or capital injection with a third party at present. No intention has been reached.

Lifan also stressed that at present, the company has sustained losses, high liabilities, a large decline in passenger car business, large debts overdue, large assets frozen, more litigation (arbitration), lack of liquidity of controlling shareholders, unable to return the funds raised, and other operational risks, although the company is actively studying, but has not yet formed an effective solution; the company's capital chain is tight and faces serious liquidity risks. Remind investors to pay attention to investment risks.

Lifan is in a huge loss. In 2019, Lifan realized revenue of 7.4 billion yuan, down 32.35% from the same period last year, and the net profit attributed to shareholders of listed companies was a loss of 4.68 billion yuan. According to the first quarter report of 2020, Lifan realized revenue of 560 million yuan in the first quarter, down 74.88% from the same period last year. The net profit belonging to shareholders of listed companies was 197 million yuan, down 103.06% from the same period last year.

On the evening of June 18, Lifan shares disclosed the company's cumulative supplementary announcement involving litigation (arbitration) matters. The announcement shows that the company has been involved in 392 lawsuits (arbitration), involving a total amount of 2.906 billion yuan. Of the 392 cases, 221 have been adjudicated (arbitration). Lifan is all defendants and needs to compensate the other party a total of 1.836 billion yuan. There were 82 unheard cases, involving a total amount of 580 million yuan. In addition, the amount of undisclosed litigation (arbitration) reached 268 million yuan in the past 12 months. There are also 181 lawsuits (arbitration), the total amount of which is 164 million yuan due to the small amount of individual cases.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat