On October 14, * ST Lifan opened with a one word limit of 5.72 yuan / share, down 4.98%, while in the previous trading days, * ST Lifan continued to rise. What happened? < p > < p > on the evening of October 13, Lifan Co., Ltd. announced that it had received the notice from Chongqing Lifan Holding Co., Ltd. (hereinafter referred to as “Lifan Holdings”) and the actual controllers of the company, Yin Mingshan, Chen Qiaofeng, Yin Xidi and Yin Suowei on October 13, 2020, and they respectively received the notice from China Securities Regulatory Commission (hereinafter referred to as “China”) on October 12 and 13, 2020 According to the “Notice of investigation” issued by China Securities Regulatory Commission (CSRC), because Lifan holdings, Yin Mingshan, Chen Qiaofeng, Yin Xidi and Yin Suowei are suspected of illegal information disclosure, the CSRC has decided to put them on file for investigation. In the evening of the same day, Lifan shares also issued a notice on the resignation of the company’s supervisors by the managers, indicating that the board of supervisors of Lifan shares has recently received a written resignation report from the supervisor Ms. LAN Tingqin. Ms. LAN Tingqin, the supervisor, resigned from the position of supervisor of the company for personal reasons, and will not hold any post in the company after resignation. < p > < p > it is worth noting that although * ST Lifan Co., Ltd. announced on October 13 that it was put on file by the CSRC for investigation, as early as March this year, the company had already found the illegal guarantee through self inspection. < p > < p > according to public data, in late March this year, Lifan Co., Ltd. issued an announcement, saying that after self inspection, the company and its subsidiaries had violated the external guarantee situation, involving the amount of illegal guarantee of 550 million yuan, accounting for 7.38% of the company’s latest audited net assets and 217.42% of the company’s latest audited net profit. Specifically, the company and its subsidiaries provided guarantee for the external loan of Chongqing Lifan Holding Co., Ltd. without the deliberation of the board of directors and the general meeting of shareholders, including 200 million yuan from Fudan bank and 350 million yuan from industrial and Commercial Bank of China. In view of the serious violation of the guarantee, and the CSRC has finally launched an investigation, the company will be subject to claims from investors. As early as August 7 this year, Lifan holdings applied to the court for judicial restructuring on the grounds that it could not pay off its due debts and its assets were insufficient to pay off all debts; on August 21, Lifan holdings received the “civil ruling” and “decision” served by the court, ruling to accept the creditor’s application for restructuring of the company. < p > < p > on October 9, * ST Lifan issued a progress announcement on the recruitment of restructuring investors. Liangjiang fund and Geely maijie investment will participate in the reorganization of Lifan shares as the investors intending to restructure. It is reported that Geely maijie is a subordinate enterprise of Geely technology group. Geely Technology Group is a large-scale industrial group guided by scientific and technological innovation and driven by investment and operation. It is also an industrial investor and operator in the cross-border science and technology ecological field. < p > < p > on August 28, * ST Lifan released a semi annual report, and the data showed that in the first half of the year, the company realized 1.584 billion yuan of operating revenue, a year-on-year decrease of 69.42%; a net loss of 2.595 billion yuan, a loss of 947 million yuan in the same period of the previous year, an increase of 173.99%; the basic earnings per share was – 1.99 yuan, and the basic earnings per share of the same period of the previous year was -0.72 yuan. < p > < p > * ST Lifan also announced that from January to June 2020, the company will draw about 381 million yuan of asset impairment reserves, and the loss of disposal of fixed assets will be about 1.085 billion yuan, and subsequent companies may face large asset impairment. In terms of sales volume, * ST Lifan sold 978 traditional passenger cars in the first half of the year, down 95.29% year-on-year, and 549 new energy vehicles, a year-on-year decrease of 56.32%. Only 1527 cars were sold. According to times finance and economics, Lifan industry (Group) Co., Ltd. was founded in 1992, mainly engaged in the development and production of automobiles, motorcycles, engines and vehicle accessories. It was listed on the Shanghai Stock Exchange in 2010. It was once the largest motorcycle manufacturer in China, known as “motorcycle king”. As the founder of Lifan shares, Yin Mingshan has always been regarded as a “legend” by the outside world. Yin Mingshan is a middle-aged entrepreneur. At the age of 47, he went into business at the age of 54, and entered the motorcycle industry at the age of 54. At the age of 62, he entered the Forbes list of 100 richest people in mainland China. At the age of 66, he stepped into the field of car making and founded Lifan motor. < p > < p > at the 2019 shareholders’ meeting of Lifan Co., Ltd. held in May this year, Yin Annie, the eldest granddaughter of Yin Mingshan, appeared as a non employee supervisor of Lifan shares and was considered as the appointed successor. According to public information, Yin Annie was born in 1995 and returned from studying in the United States not long ago. However, judging from the performance of the secondary market, its share price has dropped 79% compared with the highest point of the stock price in 2015 (27.64 yuan / share), so far * ST Lifan has reported 5.72 yuan / share, with a total market value of 7.515 billion yuan, a decrease of 28.8 billion yuan compared with the market value of 36.3 billion yuan in mid June 2015. As of December 31, 2019, the total assets of the company reached 19.407 billion yuan, the total liabilities was 16.573 billion yuan, and the asset liability ratio was 85.4%; the company had large liabilities, including long-term liabilities of 1.681 billion yuan and short-term liabilities of 14.892 billion yuan. The liability structure was unreasonable and there were a large number of debts due within one year.