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On November 12, Lifan Science and Technology (Group) Co., Ltd. (hereinafter referred to as "Lifan Technology") issued an announcement on the end of the bankruptcy proceedings of Henan Lifan New Energy Electric vehicle Co., Ltd. (hereinafter referred to as "Henan Lifan"), a former wholly-owned subsidiary. According to the announcement, the court ruled that Henan Lifan, a former wholly-owned subsidiary of Lifan Technology, was ordered by the Jiyuan City people's Court of Henan Province (hereinafter referred to as "Jiyuan City people's Court") to end the bankruptcy liquidation procedure.

In response to the Lifan Technology ruling to end the bankruptcy liquidation procedure, Lifan Technology said that Henan Lifan will no longer be included in the consolidated financial statements of Lifan Technology since it entered the bankruptcy procedure on December 15, 2023. Therefore, the termination of the bankruptcy liquidation procedure will not adversely affect the financial situation and operating results of Lifan Technology, nor will it affect the development of the existing main business of Lifan Technology.

On March 6, 2023, because Henan Lifan was insolvent and no longer capable of sustainable operation, Lifan Technology applied to the court for bankruptcy liquidation. At that time, the announcement showed that Henan Lifan had no real business since 2020. As of September 30, 2022, Henan Lifan had unaudited net assets of-154 million yuan, total liabilities of 189 million yuan, seriously insolvent and no longer capable of sustainable operation. On December 7 of the same year, Henan Lifan applied to the people's Court of Jiyuan City, Henan Province for bankruptcy liquidation 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. On December 15 of the same year, the court accepted Henan Lifan's application for bankruptcy liquidation.

On April 15 this year, the people's Court of Jiyuan declared Henan Lifan bankrupt. The court held that Henan Lifan could not pay off the debts due and could not be paid after compulsory enforcement by the people's court, which belonged to the situation of obvious lack of solvency, and the identified assets were obviously insufficient to pay off the claims. It is understood that as of April 9, Henan Lifan's assets were valued at 99.0777 million yuan, and the total debt tentatively approved was 125333402 yuan. at the same time, Henan Lifan saved a number of enforcement cases that could not be paid off, and now it has suspended production and business, and has no conditions to continue its operation. have the conditions to declare bankruptcy.

After the court declared Henan Lifan bankrupt, Henan Lifan administrator auctioned the bankruptcy property. It is understood that the bankruptcy property of Henan Lifan includes all the inventory (raw materials, turnover materials in the warehouse, inventory goods) in the Henan Lifan factory area; machinery and equipment; electronic equipment; vehicles; projects under construction and other assets. On July 22 this year, Henan Lifan asset bag launched its first auction, with a starting price of 98.9486 million yuan, because no one bid ended in a failed auction. Since then, Henan Lifan managers held auctions on August 12, September 1 and September 12, respectively, after a 20% reduction in the unsold price of each auction, but the market response was lukewarm and failed, of which the starting price for the fourth auction was 50.6617 million yuan. after that, Henan Lifan managers conducted two more rounds of auctions, but unfortunately, Henan Lifan assets ended in failed auctions after six auctions.

On November 8, the administrator of Henan Lifan received a ruling issued by the Jiyuan Municipal people's Court, which ruled to end the bankruptcy liquidation procedure of Henan Lifan New Energy Electric vehicle Co., Ltd. The court held that: "Henan Lifan administrator auctioned the bankruptcy property, and after six auctions all failed. Due to the market situation and the special situation of Henan Lifan bankruptcy property, there are some difficulties in changing the price of the existing property. Continuous price reduction can not maximize the value of bankruptcy property, and there is no property available for distribution at present." Now that the main work of bankruptcy liquidation has been completed, the administrator of Henan Lifan has applied to end the bankruptcy liquidation procedure of Henan Lifan, and according to the ruling of the people's Court of Jiyuan City on ending the bankruptcy procedure, go through the formalities of cancellation of registration for industry and commerce and taxation.

Data show that Henan Lifan New Energy Electric vehicle Co., Ltd. was established in August 2014, the legal representative is Yang Panhong, the enterprise registered capital and paid-in capital are 150 million yuan, is an enterprise mainly engaged in the automobile manufacturing industry. The company is wholly owned by Chongqing Lifan New Energy Automobile Co., Ltd., which is wholly owned by Lifan Technology (Group) Co., Ltd. ("Lifan Technology"), that is, Henan Lifan is a wholly owned subsidiary of Lifan Technology. It is also Lifan's 24th factory in the world and the first factory specializing in the production of new energy electric cars, which was put into production in December 2014. Weilai Motor and Xiaopeng Motor have just been founded, although Henan Lifan started not too late, but in the end can only come to a bleak end.

People in the industry believe that the fall of Henan Lifan is not only due to its own reasons, but also related to the rapid rise of domestic independent brands and the intensification of market stock competition in recent years. It can be predicted that Henan Lifan will not be the last brand to fall. With the intensification of competition among car companies, car companies that are unable to follow the development pace of the mainstream market and lack of core technology and products are bound to face elimination.

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