The war of Lifan! “Godfather” Yin Mingshan is put on file for investigation

The road to reorganization has not yet ushered in the dawn, Lifan again encountered a fatal blow. On October 13, * ST Lifan (601777; SH; yesterday’s closing price of 5.72 yuan) announced that * ST Lifan 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, were suspected of illegal information disclosure, The China Securities Regulatory Commission decided to put it on file for investigation. According to the announcement, Lifan holdings is the controlling shareholder of * ST Lifan, holding 47.08% of its shares. Yin Mingshan, Chen Qiaofeng, Yin Xidi and Yin Suowei are all directors of the company. The above four directly hold 0.49% of the company’s shares, while 47.08% of the company’s shares are indirectly held by Lifan. < p > < p > * ST Lifan said that the investigation was conducted on the controlling shareholders and actual controllers of the company, which had nothing to do with the company’s daily management and business activities, and had no impact on the company’s normal operation. At the same time, the company is ruled by the court to accept reorganization, there is the risk of being declared bankrupt due to the failure of reorganization. If the company is declared bankrupt, the company will be subject to bankruptcy liquidation, and the company’s shares will face the risk of delisting. < / P > < p > in response to this matter, the reporter of daily economic news sought confirmation from the relevant person in charge of * ST Lifan, but as of the time of publication, the other party did not respond. Cao he, President of quanlian auto Investment Management (Beijing) Co., Ltd., believes that at the node of Lifan’s restructuring, the controlling shareholders and actual controllers are put on file for investigation, which will have an adverse impact on Lifan’s promotion of restructuring process. < p > < p > on October 13, * ST Lifan announced that the first creditors’ meeting of the company’s reorganization was held in the form of an online meeting, and the property management plan of Lifan Industrial (Group) Co., Ltd. (hereinafter referred to as the “property management plan”) was adopted. < p > < p > < p > the main content of the “property management plan” is that the managers carry out the property management work in accordance with the principle of legality and compliance, the principle of high efficiency and order, the principle of maximum value and the principle of accepting supervision. Through a series of measures, under the premise of ensuring the normal operation of Lifan shares, the property management of Lifan shares is realized. According to media reports, Lifan Auto Sales Co., Ltd. (hereinafter referred to as Lifan Sales Co., Ltd.) is the legal entity of Lifan in this trial. The main content of the trial is to clarify the total amount of creditor’s rights and appoint a responsible organization for Lifan’s restructuring. As of September 30, this year, the administrator has received 489 claims, with a total amount of 1.128 billion yuan, and the final approved total amount of claims is 699 million yuan. The main reasons for failing to approve the creditor’s rights are that the litigation is pending, the declaration subject is not qualified, and the evidence is insufficient. < p > < p > in addition, Lifan sales company has 162 outstanding civil and arbitration lawsuits, involving a total amount of 870 million yuan. Among ordinary creditors, the largest single debt is Xi’an Branch of Ping An Bank Co., Ltd., with an approved amount of 284 million yuan; the smallest single debt is Xiamen Jianxiu mirror industry Co., Ltd., with an approved amount of 1665 yuan. However, the current book assets of Lifan sales company are about 30 million yuan, and the fixed assets are about 15 million yuan, which is not a small gap with the total amount of creditor’s rights mentioned above. According to the above report, the court appointed the management team of Chongqing bank to be responsible for the capital management during the restructuring period of Lifan, with the goal of formulating a restructuring plan within 2020. < p > < p > “Lifan chose bankruptcy reorganization mainly to solve the debt problem.” Cao he believes that the focus of Lifan’s series of actions is to seek bankruptcy, so as to sell property and offset debt. < / P > < p > in August this year, * ST Lifan announced that the total amount of litigation (Arbitration) involved in the company (including its subsidiaries) which was not disclosed in the past 12 months was about 298 million yuan. Up to now, the company has involved 1178 lawsuits (Arbitration), involving 5.037 billion yuan. < p > < p > in addition to high debt, Lifan’s performance has been in deficit for a long time. According to the performance report of the first half of 2020 released by * ST Lifan, from January to June this year, the company’s net profit attributable to the shareholders of the listed company was – 2.595 billion yuan, a year-on-year decrease of 173.99%; after deducting the non recurring profit and loss, the net profit was – 784 million yuan, which was negative for four consecutive years after deducting the non recurring profit and loss. In terms of sales volume, from January to August this year, Lifan has sold 1183 traditional passenger cars, down 94.53% year-on-year; 661 new energy vehicles have been sold, with a year-on-year decrease of 60.54%; and the cumulative sales of motorcycles on which Lifan started its business were about 342200, a year-on-year decrease of 15.6%. < p > < p > with regard to the sharp decline of automobile business, Lifan said that due to the epidemic situation, the downward trend of automobile market and other factors, its overall business was greatly adversely affected. At the same time, the company’s preparation for the implementation of the “national six” standard is not enough, and there is no “national six” model supply market, resulting in a decline in sales. In addition, the export business in the first half of the year was in a semi stagnant state, which was also one of the main reasons for the decline in its car sales. < p > < p > in fact, Lifan, defined by the outside world as “dead end”, is not without highlight. Lifan, which started with motorcycles, once produced and sold more than 2 million motorcycles annually, and its business expanded to more than 160 countries and regions around the world. From its establishment in 1992 to 2001, Lifan’s motorcycle engines have sold 1.84 million units, with revenue of more than 3.8 billion yuan. Driven by Lifan, Chongqing’s motorcycle production and sales have ranked first in China for many years. The annual sales volume in 2002 accounted for 2 / 3 of the domestic market and 1 / 2 of the export market. In 2003, under the influence of the “no motorcycle” policy, Lifan motorcycle took off its halo and suffered losses. Under the leadership of Yin Mingshan, Lifan began to enter the automobile industry. In 2006, Lifan 520, the first Lifan car, was put into the market. In 2010, Lifan was officially listed on the Shanghai Stock Exchange, becoming the first private listed automobile enterprise in the A-share market. < / P > < p > in the past decade, Lifan’s product line has been slow to update. At present, there are 7 models on sale, and more than half of them were launched before 2017. Monthly sales downturn, coupled with serious losses, a large number of Lifan dealers have chosen to withdraw from the network in 2019. < / P > < p > “Lifan did not hold the real attitude of industrial investment in the industry, and the speculative mentality was relatively serious. At the same time, it did not conduct enough investment and research and development in the later stage, which led to the gradual fall behind in the development process.” Cui Dongshu said. In Cao he’s opinion, in addition to the problems in product technology, Lifan’s marketing has not kept up with the pace of the market, and there are great problems in the management system, and the family management color is too strong. In the face of difficulties, Lifan has also taken measures to help itself, such as transferring the production base of 150000 passenger cars project to the land reserve and renovation center of Liangjiang New Area of Chongqing at a price of about 3.315 billion yuan, and selling its subsidiaries with the qualification of fuel vehicles and new energy vehicles to ideal cars for 650 million yuan, but all of them have little effect. When it comes to Lifan, Yin Mingshan, the godfather, is a key figure in its development. From motorcycles, automobiles, football to new energy vehicles, to hydrogen fueled vehicles, Lifan under Yin Mingshan seems to have been chasing after tuyeres. However, apart from early motorcycles, Lifan seldom makes profits in other tuyeres. < / P > < p > some analysts think that the automobile industry chain is too long, the volume is too large, and it is deeply affected by industrial policies. At the same time, the complexity of motorcycle technology is not the same as that of automobile. Lifan is very hard to do when the management, capital and other conditions are not ready. In addition, some people believe that the lack of a strong successor after Yin Mingshan is also one of the important reasons for his failure. Yin Xidi and Yin Suowei, who were investigated by China Securities Regulatory Commission, are the son and daughter of Yin Mingshan respectively. Although they hold positions in Lifan, they have not made outstanding achievements. In April, Yin Annie, the granddaughter of Yin Mingshan, went to the stage to serve as the shareholder supervisor of the Fourth Board of supervisors of the company at the first temporary general meeting of shareholders held in Lifan in 2020. The first “three generations” member of Yin Mingshan’s family entered the management of listed companies, which was regarded as the “self-help” of Yin Mingshan and Lifan. But judging from the current situation, Yin Mingshan’s new round of “self-help” has not received the expected effect. < / P > < p > it is worth mentioning that * ST Lifan announced on October 9 that Chongqing Liangjiang Equity Investment Fund Management Co., Ltd. (hereinafter referred to as Liangjiang Fund) and Geely maijie Investment Co., Ltd. (hereinafter referred to as maijie investment) participated in the reorganization of the company as the investors of intention to restructure as a consortium. According to qixinbao, Geely Technology Group Co., Ltd. and Hangzhou JIhang Technology Co., Ltd. of Geely Holding Group hold 99% and 1% shares of maijie investment respectively. This means that Geely has been involved in the restructuring of Lifan, or become the catcher. < / P > < p > “now that Lifan shareholders are put on file for investigation, it will certainly have an adverse impact on the introduction of subsequent strategic investors. But the success rate of Lifan reorganization depends on the support of local governments. ” Caohe told reporters that Geely should see the advantages behind Lifan car business, such as land, shell resources of listed companies, etc. < / P > < p > in the context of domestic and foreign difficulties, the motorcycle business is regarded as a “life-saving straw” for Lifan to turn over. In the first half of this year, although the motorcycle business declined, it was the highlight of Lifan’s performance report. As early as 2019, Lifan announced the adjustment of the company’s business development focus, focusing on the motorcycle business on which it started. < p > < p > in the first half of this year’s annual report, Lifan said that the company will continue to promote KP series products and further expand the product line of KP series models. In terms of vehicle models, the existing KP products will continue to improve their categories, and new products such as kpr150 national fourth edition, K18, V16 sports version and kpv sports pedal will be put into the market in the second half of the year. < / P > < p > Disclaimer: the purpose of this article reprinted by china.com finance and economics is to convey more information and does not represent the views and positions of the website. The content of this paper is for reference only and does not constitute investment advice. 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