AutoBeta(AutoBeta.net)07/30 Report--

On July 29th, Wanan Technology announced that its subsidiary Wanbao Machinery Co., Ltd. had submitted a civil complaint to the people's Court of Zhuji City, Zhejiang Province on July 22 this year. Lifan passenger car Co., Ltd. and Lifan passenger car Beibei Branch are required to pay about 6.0757 million yuan. at present, the people's Court of Zhuji City, Zhejiang Province has accepted the case.

According to the person in charge of Wanan Science and Technology, since 2007, Beibei Branch of Lifan passenger car and Lifan passenger car began to purchase auto parts such as brakes, clutch pumps, vacuum booster and other auto parts from Wanbao Machinery. Wanbao Machinery has been delivering goods on time according to orders. However, since last year, Lifan passenger car, Lifan passenger car Beibei branch began to default on the payment that should be paid. As of July 22nd, Lifan passenger car, Lifan passenger car Beibei branch owed a total of about 6.0757 million payment for Wanbao machinery. In this regard, Wanan Science and Technology filed a lawsuit with the people's Court of Zhuji City, Zhejiang Province, demanding that Lifan passenger cars and Beibei Branch of Lifan passenger cars pay 6.0757 million yuan in arrears, and compensate for the losses caused by the arrears to the company and the full costs of the lawsuit.

In fact, this is not the first time Lifan has been recovered by the supplier. According to statistics, in the past 12 months, the cumulative amount of undisclosed litigation (arbitration) of Lifan shares has reached 1.423 billion yuan. Among them, Hongxing Meikailong, Senmai auto parts, Huake Financial Leasing Company and so on are the creditors of Lifan.

According to Lifan's production and sales data in the first half of this year, the cumulative production and sales of traditional passenger cars in Lifan in the first six months of this year were 17170 and 20758 respectively, down 66.38% and 62.55% over the same period last year; the cumulative production and sales of new energy vehicles were 1062 and 1257 respectively, down 69.61% and 60.66% from last year.

The decline in production and sales of both traditional passenger cars and new energy vehicles has made Lifan's financial results bleak. In the first quarter of this year, Lifan's operating income was about 2.247 billion yuan, down 31.07% from the same period last year; the net profit attributed to shareholders was about-97.2048 million yuan, down 257.56% from the same period last year.

In order to get rid of the predicament, Lifan shares also began a series of self-rescue actions. Last year, Lifan sold assets twice in a row. In addition to selling the production base of the original 150000 passenger car project to Chongqing Liangjiang New area Land Reserve renovation Center at a price of 3.3 billion, Lifan also transferred a 100% stake in its subsidiary Chongqing Lifan Automobile Co., Ltd. to car and Home at a price of 650 million. But the profit that this sale of assets brings to Lifan is only a drop in the bucket.

With the acceleration of the transformation of the auto industry, China's auto market may become a new industrial camp led by star enterprises. For car companies like Lifan, which used to rely on local protection and state subsidies to survive, time is running out. And Lifan is facing the decline in sales, debt and other problems make it even worse. In the future, Lifan's development is really worrying!

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