AutoBeta(AutoBeta.net)08/13 Report--

On August 13, the Alibaba auction platform showed that the asset bag of Henan Lifan New Energy Electric vehicle Co., Ltd. (hereinafter referred to as "Henan Lifan") failed to auction again because there was no bid.

Henan Lifan asset bag was auctioned for the first time on July 22 this year, with a starting price of 98.948613 million yuan. unfortunately, after a 24-hour auction, the market received a lukewarm response, which ended in a failed auction on July 23 due to no bid. This is the second auction, and the starting price of the second auction dropped from 98.948613 million yuan to 79.1588 million yuan, a decrease of 19.7898 million yuan. Although the starting price of the second auction has shrunk by nearly 20%, no one is interested.

According to the auction platform, a total of 74 people set reminders and 1543 onlookers in the second auction, but no one signed up, which ended at 10:00 on Aug. 13 and ended in a failed auction. For comparison, a total of 111people set reminders and 3581 onlookers at the first auction. In other words, the attention of the second auction shows a "waist-cut" trend. The auction notice shows that the subject of the auction is all the inventory registered by Henan Lifan, including raw materials, turnover materials in the warehouse, goods in stock, machinery and equipment, electronic equipment, vehicles and other assets.

According to public data, Henan Lifan New Energy Electric vehicle Co., Ltd. was established in August 2014. its legal representative is Yang Panhong, and its registered capital and paid-in capital are both 150 million yuan. The company is wholly owned by Chongqing Lifan New Energy Automobile Co., Ltd., which is wholly owned by Lifan Technology (Group) Co., Ltd. (hereinafter referred to as "Lifan Technology"). In other words, Henan Lifan is a wholly owned subsidiary of Lifan Technology.

It is understood that Henan Lifan is the 24th factory of Lifan Technology in the world, and it is also the first factory of Lifan Technology specializing in the production of new energy electric cars, which was put into production in December 2014. At that time, Lulai Automobile and Xiaopeng Automobile had just been founded. From the perspective of the development timeline, Henan Lifan started not too late, but unfortunately it only ended badly.

On March 6, 2023, Lifan Technology (Group) Co., Ltd. issued a notice saying that the board of directors agreed that Henan Lifan should apply to the court for bankruptcy liquidation. The announcement shows that Henan Lifan has no real business since 2020. As of September 30, 2022, Henan Lifan has unaudited net assets of-154 million yuan and total liabilities of 189 million yuan. It is seriously insolvent and does not have sustainable operating capacity. In view of the above situation, in order to optimize the business structure, focus on the main business, enhance the company's profitability, and protect the legitimate rights and interests of Henan Lifan shareholders and creditors, Henan Lifan intends to apply to the court for bankruptcy liquidation on the grounds that it is insolvent and unable to repay its debts. After Henan Lifan's bankruptcy liquidation application is accepted by the court and appointed bankruptcy administration, Lifan Technology will lose control over it and it will no longer be included in the scope of the company's consolidated statement.

On December 7, 2023, Henan Lifan applied for bankruptcy liquidation to the people's Court of Jiyuan City, Henan Province, on the grounds that it was insolvent, unable to pay off its maturing debts, the capital chain was interrupted, and the key test projects could not pass the test to completely stop production. According to the court ruling, Henan Lifan applied for the production of low-speed four-wheeled electric vehicles to operate in this case, but pure electric passenger cars were not approved and submitted to terminate the application for the qualification of electric passenger vehicles at the end of 2016. In addition, because Lifan Group was in trouble, its investment in Henan Lifan was interrupted. by the company's financial audit to December 31, 2022, the company's assets were 35.2105 million yuan, liabilities were 189 million yuan, net assets were-154 million yuan, and the company was involved in a number of civil lawsuits and executions. now production equipment and funds have been seized and frozen, in a state of complete suspension of production.

The court held that Henan Lifan was in trouble in production and operation in recent years due to the examination and approval of pure electric passenger car projects and capital problems. The company now stops production, has no source of production and operating income, and obviously lacks the ability to repay its maturing debts. Therefore, the applicant Henan Lifan filed an application for bankruptcy liquidation on its own in line with the relevant laws and regulations. On December 15 of the same year, the court accepted Henan Lifan's application for bankruptcy liquidation.

It should be noted that times have changed, and today's Lifan technology is no longer the former Lifan, but a Geely "sub-car company" with the name Lifan. In July 2020, Lifan issued an announcement that many 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 be at risk of bankruptcy due to the failure of restructuring. At this point, Lifan embarked on the road of bankruptcy reorganization. The following month, the court ruled to accept the bankruptcy reorganization of Lifan. In December 2021, Geely Automobile announced that it planned to jointly invest with Lifan Technology to establish a joint venture company. Geely Holdings and Lifan Technology each contributed 300 million yuan, with a shareholding ratio of 50%. In January 2022, the joint venture company jointly invested by Geely Automobile and Lifan Technology has completed the industrial and commercial registration procedures and obtained the business license issued by the Market Supervision Bureau of Liangjiang New area in Chongqing, China. it is named Chongqing Ruilan Automobile Technology Co., Ltd. ("Ruilan Automobile").

The experience of returning to Henan Lifan, its fall undoubtedly sounded the alarm for the industry. Of course, with the intensification of the transformation of traditional car companies and the intensification of the survival of the fittest in the car market, the competition is becoming more and more intense. Henan Lifan's situation is only a microcosm of many car companies at present.

Prior to this, Guangzhou Auto Fiat Chrysler Co., Ltd. (hereinafter referred to as "Guangzhou Auto Fick") bankruptcy liquidation asset auction also failed twice. The first auction at the GAC Fick Changsha plant began at 10:00 on July 21, with a starting price of 1.9152885 billion yuan, but the first auction ended in a failed auction because there was no bid, according to the auction platform. Since then, the second auction began at 10:00 on August 5, and the starting price of the second auction dropped by 383.0577 million yuan from 1.9152885 billion yuan to 1.5322308 billion yuan, but in the end there was no one to pick up the offer.

People in the industry believe that whether it is Henan Lifan or Guangzhou Auto Fick, its collapse is actually related to the development of the general environment of the car market, the market is constantly changing, and these car companies have failed to follow the pace of development of the mainstream market. In fact, with the rapid rise of domestic independent brands and the intensification of market stock competition in recent years, car companies that lack hematopoietic ability and do not have enough bright spots have been eliminated by the market one after another. including Southeast Mitsubishi, Changan Suzuki, Dongfeng Renault, Guangzhou Auto Acura and so on have faded out of public view.

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