AutoBeta(AutoBeta.net)08/23 Report--

On the evening of August 22, Lifan released a semi-annual report with a net loss of more than 900 million yuan, and also carried out a series of personnel adjustments, such as a change of general. According to the data, the company's operating income in the first half of 2019 was 5.178 billion yuan, down 13.39 percent from the same period last year, while the net profit was 947 million yuan, compared with a profit of 125 million yuan in the same period last year, down 859.98 percent from the same period last year.

With regard to such a great change in performance in the middle of the year, Lifan said in the announcement that, first of all, changes in the external market environment affected the company's production and marketing, resulting in a substantial decline in production and sales and a decrease in gross profit; secondly, due to the difficulties in the financing environment, the company's funds were tight. In order to maintain production and operation and maintain the company's credit, the company actively raised financing through multiple channels, resulting in an increase in financing costs and losses. Finally, the relocation of the company's passenger car base affects the production plan and the reduction of the availability of some equipment, resulting in asset impairment.

It is understood that Lifan is mainly engaged in the research and development, production and sales (including exports) and investment finance of passenger cars (including new energy vehicles), motorcycles, engines and general gasoline engines, among which passenger car products cover three major categories: cars, SUV and multi-purpose passenger vehicles (MPV).

In order to adjust the development of the business, Lifan decided to give priority to the related business of motorcycles, while the passenger cars will also be improved.

At the same time, in the announcement of Lifan shares, several personnel adjustments were announced: Chen Weishen asked to resign as chairman, vice chairman, chief engineer and other positions of the company; Ma Ke applied to resign as chairman, president and related positions; Yue Chuan applied to resign from the company's non-independent chairman and related positions; Dong Xu applied to resign as vice president and related positions of the company. At the same time, Yang Bo was nominated as the candidate for non-independent chairman of the board of directors and appointed as president of the company. Deng Xiaodan and Li Jinlong were appointed vice presidents of the company, and Ren Ren was appointed chief engineer.

Chen Wei is a firm promoter and executor of Lifan's new energy strategy, while Ma Ke has been in charge of the company's passenger car business, and they all resigned, while Yang Bo, who was newly nominated, has been in charge of the motorcycle sector. the rise and fall of personnel adjustment can be seen that Lifan's next business focus will gradually shift to motorcycle business. In fact, this adjustment is not surprising for Lifan. Lifan started with motorcycle business, and the market performance of automobile business has been unsatisfactory, mainly relying on the supply of funds from motorcycle business.

Today, Lifan, whether in the field of traditional fuel vehicles or new energy, its performance is not satisfactory. Perhaps the financial report on the evening of August 22 and the personnel adjustment that night are the performance of its current bottleneck in transformation.

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