AutoBeta(AutoBeta.net)12/13 Report--

On December 13, Hong Kong Geely Holdings announced that the company intends to jointly invest with Lifan Technology to set up a joint venture company, with a registered capital of 600 million yuan, and Geely Holdings and Lifan Technology each contribute 300 million yuan, with a shareholding ratio of 50%. In addition, after consultation and agreement between the two parties, both parties may appoint another subject to make capital contribution. The announcement shows that the business scope of the target company is vehicle design, research and development, sales (including accessories, parts processing equipment, automobile decoration); import and export of goods, agency import and export, technology import and export; software development; technology development, technical services, technical consultation, technology transfer.

Lifan Technology is about 28.98% owned by Geely Technology, while Li Shufu holds about 91% stake in Geely Technology, the announcement said. Mr. Li, an executive director and controlling shareholder, holds approximately 41.16% of the total issued share capital of the Company as at the date of this announcement. Therefore, according to the listing rules, Lifan Technology is not a contact of Mr. Li, nor a connected person of the Company. Therefore, under Chapter 14A of the listing rules, the establishment of a joint venture does not constitute a connected transaction of the Company. In terms of management power, the general manager, deputy general manager, financial officer and other senior management personnel of the target company are nominated by Lifan Technology and appointed by the board of directors of the target company.

Previously, under the influence of market competition and the company's own business problems, Lifan was mired in a debt crisis. On July 10, 2020, Lifan shares announced that 10 wholly-owned subsidiaries were applied to the court for judicial reorganization by creditors because they were unable to pay off their maturing debts, and the company would risk being declared bankrupt due to the failure of the reorganization. Subsequently, Geely participated in Lifan restructuring with the help of Chongqing Manjianghong Enterprise Management Co., Ltd.

In December 2020, Lifan's controlling shareholder was changed into Chongqing Manjianghong Equity Investment Fund Partnership (limited partnership), and Chongqing Manjianghong Enterprise Management Co., Ltd. will become the actual controller of the company. In January this year, Lifan Technology (Group) Co., Ltd. officially listed, the new leadership, new company name, new enterprise LOGO, new products, Lifan is indirectly controlled by Geely.

After completing the reorganization, Lifan quickly "took off the star and took off the hat." On March 2, in view of the fact that the delisting risk warning involved in the completion of the company's restructuring plan has been eliminated, the SSE agreed to withdraw the delisting risk warning and implement other risk warnings, and the securities abbreviation was changed to "ST Lifan". On April 22nd, the Shanghai Stock Exchange agreed to withdraw the application for other risk warnings of stocks, and the company's securities were changed from "ST Lifan" to "Lifan shares", and then changed from "Lifan shares" to "Lifan Technology".

In May this year, Lifan, which completed the restructuring, resumed its automobile business. Lifan Technology released news that the first power-changing model Lifan 80V has been produced in Liangjiang New area, marking that Lifan has gone out of the "ward" and returned to normal life and entered a new stage of development.

It is understood that the Lifan 80V is the standard-changing model of the Maple Leaf 80V, while the Maple Leaf 80V is the second mass-produced model under Maple Leaf, which is based on Geely's GBRC power exchange platform and is Geely's first electric car with power change. Data show that Maple Leaf is the automobile brand of Fengsheng Automotive Technology Group Co., Ltd., while Fengsheng Automotive Technology Group Co., Ltd. is a wholly-owned holding company of Geely Technology Group Co., Ltd., which has two models: Maple Leaf 30X and Maple Leaf 80V.

According to Lifan Technology, in addition to the Lifan 80V, two power-changing models, the 60s and 80X, will be launched this year, of which the 60s will face the taxi market, while the 80X is a large-scale power-changing SUV, mainly aimed at official car customers. In addition, Lifan Technology will also launch a number of new models to meet the needs of the market.

In recent years, the concentration of the market is increasing, and China's independent weak brands are accelerating their elimination, including BAIC Yinxiang, Cheetah Motor, Zhongtai and so on. Whether these enterprises can get out of the trough has also become one of the concerns of the market. At present, after Geely participated in the restructuring, Lifan has indeed come out of the "ward". According to the financial report disclosed by Lifan Technology, the revenue in the first three quarters was 2.56 billion yuan, the net profit was 50 million yuan, and the net profit after deduction was 723 million yuan, while the non-net loss was deducted from 6.334 billion yuan in 2020 and 4.395 billion yuan in 2019.

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