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Yin Mingshan, the 82-year-old Lifan controller, was investigated by the CSRC. Now Lifan is in a state of restructuring in a business crisis, and the huge debt makes it difficult for the autonomous car giant.

A few days ago, Lifan shares issued an announcement that the company received notice from controlling shareholder Lifan Holdings and the actual controllers of the company, Yin Mingshan, Chen Qiaofeng, Yin Xidi and Yin Suowei, who received the "notice of investigation" issued by the China Securities Regulatory Commission on October 12 and 13 respectively. The CSRC decided to file a case against Lifan Holdings, Yin Mingshan, Chen Qiaofeng, Yin Xidi and Yin Suowei on suspicion of illegal information disclosure.

The announcement also shows that Lifan Holdings is the controlling shareholder of the company (Lifan shares), holding 47.08% of the shares of the company. Yin Mingshan, Chen Qiaofeng, Yin Xidi and Yin Suowei all hold directorships in the company, and the above four directly hold 0.49% of the company's shares; the above four indirectly hold 47.08% of the company's shares through holding shares of Lifan Holdings.

Lifan shares said that this investigation is aimed at the company's controlling shareholders and actual controllers, has nothing to do with the daily management and business activities of the company, and has no impact on the normal operation of the company.

In addition, Lifan shares have been applied to the court by creditors for bankruptcy reorganization because they are unable to pay off their maturing debts. at present, the court has ruled to accept the reorganization and began to recruit restructuring investors. The company warned that there was a risk of bankruptcy due to restructuring failure, and that if the company was declared bankrupt, the company would be liquidated.

It is understood that Lifan shares current currency funds of only 43 million yuan, maturing debt of 1.196 billion yuan, other property liquidity is poor, can not be realized, obviously lack of solvency.

At present, Chongqing Liangjiang Equity Investment Fund Management Co., Ltd., Geely Maijie Investment Co., Ltd. as a consortium, will participate in the restructuring of Lifan shares as intended restructuring investors.

Data show that Geely Maijie Investment Co., Ltd. was established on October 27, 2015, the legal representative is Xu Zhihao, the scope of business includes industrial investment; investment consulting, fiduciary enterprise asset management. In the company's shareholder information, Geely Technology Group Co., Ltd. holds 99% of the shares, while Hangzhou Geely Technology Co., Ltd. holds 1%. Therefore, the actual control is Li Shufu. It means that Geely has begun to participate in the restructuring of Lifan.

The former "autonomous motorcycle king" was dragged down by the automobile business.

Yin Mingshan was born in 1938 and began to work in the motorcycle industry at the age of 54, and established Lifan Industrial (Group) Co., Ltd., followed by the field of automobile manufacturing, and the Lifan automobile brand was born in 2006.

In 2010, Lifan shares were listed on the Shanghai Stock Exchange, becoming the first private passenger car company in China to list A-shares, with a market capitalization of more than 30 billion yuan. As a result, the book assets of Yin Mingshan's family at the helm exceeded 11 billion yuan, and Yin Mingshan, who was 72 years old at that time, became the richest man in Chongqing.

Under the troubles of business operation, Lifan Motor is at a dead end, which leads to the crisis of capital chain. In 2019, CCTV reported that production of Lifan passenger cars was at a standstill. Since then, Lifan funding problems continue to break out.

The production and marketing report shows that from January to August 2020, Lifan sold 1183 traditional passenger cars, down 94.5 percent from the same period last year; 661 new energy vehicles, down 60.5 percent from the same period last year; and in the motorcycle field, Lifan sold 342175 motorcycles from January to August, down 15.6 percent from the same period last year.

In 2019, Lifan shares recorded a loss of 4.682 billion yuan; in the first half of 2020, the net profit of Lifan shares was-2.595 billion yuan, down 173.99% from the same period last year, and the net profit after deducting non-recurrent profits and losses was-784 million yuan.

It is worth noting that Chen Qiaofeng, who was placed on file for investigation, is Yin Mingshan's second wife, while Yin Xidi and Yin Suowei are Yin Mingshan's son and daughter. Now 82-year-old Yin Mingshan can only hope that restructuring will defuse the company's crisis.

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