Ive seen the instantaneous fluctuation, but I havent seen it so fast.
Yesterday, the market went all the way up, but before 14:30, it seemed to have nothing to do with Lifan shares (601777, SH). Except for the brief red turn in early trading, it has been falling by 2%. At 14:30, however, it woke up in a flash: in just 30 seconds, most people had no time to make any response when the limit rose in a straight line. Calculated from the 1.8% drop of the stock price before the rally, the increase will be close to 12% in 30 seconds!
Time sharing chart of Lifan shares yesterday
From the list of time-sharing transactions, this wave of changes is caused by 11 consecutive large purchases in just 30 seconds, a total of 115996 hands, roughly calculated at an average price of 5 yuan / share, with a total amount of nearly 60 million yuan. By the end of the day, more than 20000 people had paid for the price (about 11.5 million yuan) to block the price limit.
Lifan share time-sharing transaction list
Now looking back at the reasons for this wave of changes, we all know that it is because of the rumor that Geely Holding will buy Lifan shares. And every bulls eye specifically searched baidu information in chronological order and found that the earliest source of the rumor can be traced back to a news released by tonghuashun finance and economics at 14:29:
Photo source: Baidu Baijia No
According to people familiar with the matter, Zhejiang Geely Holding Group Co., Ltd. plans to inject capital into Chongqing Lifan Holding Co., Ltd. to become its largest shareholder, and the price and scale of the equity are unclear, the source said The source is indicated as Reuters.
No matter where the real source of the news is and how reliable it is, one thing has to be admitted: the 60 million yuan fund above reacts fast enough - a surprise attack was launched just one minute after receiving the news.
The rumor was cleared by speed of light
Ive seen the rumor clarified, but I havent seen it so fast. Just when the shareholders were stunned and didnt have time to react, the rumors were clarified.
Similarly, every bull eye searched baidu information in chronological order and found that the earliest source of clarification came from a message released by the financial sector at 14:35:
Photo source: Baidu Baijia No
But then Yang Xueliang, a spokesman for Geely holdings, decisively denied the rumors and said no such thing, the end of the message said That is to say, less than 5 minutes after Lifans speed of light limit, it was clarified by Geelys speed of light.
As for Yang Xueliangs denial through what channels, every bulls eye multiple queries also did not get the exact answer, but in the discussion of the Internet users of Dongfang fortune net bar, it was noted that some netizens said that Yang Xueliang had clarified on Weibo, but it was quickly deleted. Every cattle eye looked at Yang Xueliangs Micro blog yesterday, and did not find the relevant content.
Photo source: Dongfang fortune.com
Yesterday evening, Lifan shares issued a relevant announcement and made a formal clarification.
Photo source: Shanghai Stock Exchange
According to the announcement, upon verification by the company to the actual controllers Yin Mingshan, Chen Qiaofeng, Yin Xidi, Yin Suowei and the controlling shareholder Chongqing Lifan Holding Co., Ltd., it is confirmed that the relevant media rumors are untrue. At present, no acquisition or capital injection has been discussed with a third party, and no intention has been reached.
So, after the hearsay is clarified, what will happen to the 60 million yuan fund that pushed Lifan shares up and down in an instant yesterday? After all, Lifans short-term growth is not small.
Daily K-line chart of Lifan Co., Ltd. within the year
Calculated from the intraday low of 2.21 yuan / share on February 4, Lifans share price has increased by nearly 150% in four and a half months, and the large amount of funds involved in the end of February and the beginning of April have made considerable profits.
Involving multiple lawsuits or facing more than 3 billion yuan of debt
In yesterdays Clarification Announcement, Lifan Co., Ltd. exposed its own embarrassment saying: the company currently has risks of continuous loss, high debt, large decline in passenger car business, overdue large debt, frozen large assets, more litigation (Arbitration), lack of liquidity of controlling shareholders, and inability to return raised funds. Although the company is actively studying, it has not yet Form effective solutions; the companys capital chain is tight and faces serious liquidity risk. Remind investors to pay attention to investment risks.
On the evening of June 18, Lifan disclosed the supplementary announcement of the company (including its subsidiaries) involving litigation (Arbitration) matters cumulatively. According to the announcement, from April 22, 2020 to the announcement date, the accumulated amount of litigation (Arbitration) related matters not disclosed by Lifan (including its subsidiaries) totaled about 268 million yuan.
At present, Lifan shares involves 392 lawsuits (arbitrations), involving 2.906 billion yuan, of which 221 have been adjudicated (arbitrations), involving 1.836 billion yuan. In the above 221 cases, Lifan shares are all defendants, and the adjudged shall bear the corresponding amount of losses; 82 cases have not yet been heard, involving 580 million yuan.
In addition, there are 181 other litigation and arbitration cases with small amount, involving a total amount of about 164 million yuan. Due to the large number of cases and small amount, the amount of a single case does not exceed 10 million yuan, which does not meet the requirements of single case disclosure.
It is understood that most of the litigation cases disclosed by Lifan have not yet been heard, but if Lifan fails, it will face more than 3 billion yuan of debt.
Lack of competitiveness, continuous decline in business
In addition, according to the daily economic news, the official website of Lifan Co., Ltd. shows that the company is a large-scale private enterprise integrating research and development, production and sales of automobiles, motorcycles and engines (including export), and investing in finance. Lifan Co., Ltd. was listed on the Shanghai Stock Exchange on November 25, 2010, and is the first private passenger vehicle enterprise to list a shares in China.
According to the 2019 annual report, Lifans main business is transportation, other, mechanical and electrical, accounting for 73.09%, 21.45% and 3.78% of its revenue respectively.
According to the annual report issued by Lifan on April 30, the company achieved a total operating revenue of 7.45 billion yuan in 2019, a year-on-year decrease of 32.35%; the net profit of shareholders belonging to the parent company was - 4.682 billion yuan, the net profit of the previous year was 253 million yuan, a year-on-year significant decrease of 1950.83%; the net cash flow generated from operating activities was - 1.131 billion yuan.
Photo source: Lifan official website
It is worth noting that the passenger car business of Lifan Co., Ltd. is not ideal at present, with a large decline. Data shows that from January to may 2020, Lifan Co., Ltd. produced 1160 traditional passenger vehicles, down 92.90% year on year; 460 new energy vehicles, down 47.73% year on year.
On June 15 this year, the defective product management center of the State Administration of market supervision and administration released the recall of 3651 pure electric vehicles by Chongqing Lifan Passenger Vehicle Co., Ltd., according to economic watch. With more than 7000 vehicles recalled in July 2018, Lifan has recalled more than 10000 electric vehicles in the past two years, among which the number of this recall is nearly three times of its cumulative sales volume from January to May this year.
In addition, in addition to the downturn of the automobile market environment, the lack of product competitiveness is also considered to be an important reason for Lifan automobile to fall into operating losses. Lifan automobile has always been in the third tier of local automobile enterprises, and the fuel vehicle sector has been relatively weak. Since 2015, it intends to achieve transformation breakthrough with the help of new energy vehicles. According to the announcement issued by Lifan, the sales volume of its traditional passenger vehicles in 2017 and 2018 decreased year-on-year, but the sales volume of new energy vehicles achieved a double-digit year-on-year growth. In 2019, affected by the combination of the decline of subsidies for new energy vehicles, the sales volume of its traditional passenger vehicles was 23000, down 75.52% year-on-year; the sales volume of new energy vehicles was only 3091, down 69.49% year-on-year. From January to May this year, the total sales volume of Lifan vehicles is only 1347.
Geelys recent K-line chart
In the aspect of Geely Automobile, there are also important news recently: on the evening of June 17th, Geely Automobile Holdings Ltd (hereinafter referred to as Geely Automobile) (HK.0175) issued a notice: the board of directors approved the preliminary proposal of possible issuance of RMB shares and listing on the science and technology innovation board of Shanghai stock exchange. Geely was listed on the Hong Kong Stock Exchange in May 2005. In November 2014, the Shanghai Hong Kong stock connect was opened, and Geely Automobile was listed in the list of the first batch of tradable Hong Kong shares of the Hong Kong stock connect by the Hong Kong stock exchange.
Jac and VW hand in hand after clarification and finally solid hammer
Under this kind of predicament, it is not surprising that Lifan shares are expected by the market to reappear its brilliance through the acquisition by the strong. After all, in the same industry, there is now a case of clarifying, refuting rumors, and finally still solid hammer.
As early as April 10 last year, Reuters quoted people familiar with the matter as saying that Volkswagen is considering acquiring a large number of shares in JAC, a joint venture partner of Chinas electric vehicles, and has hired Goldman Sachs as an adviser to the plan; in addition, people familiar with the matter said that Volkswagens plan is still in its infancy, but it is eager to acquire a large number of shares in JAC, and Volkswagen will seek to acquire a large number of shares from JAC Of the major shareholders. Before and after the news came out, there was a wave of rapid rise in JACs stock price.
However, the next day JAC issued a Clarification Announcement denying that Volkswagen would buy a large number of shares in JAC. On the basis of joint venture and cooperation of new energy passenger vehicles, JAC and Volkswagen have been discussing how to further deepen cooperation, and no formal plan has been formed up to now, JAC said in the announcement. After that, JACs share price quickly fell back to the starting point of the previous rise.
Jacs share price trend before and after clarifying rumors last year
However, it turns out that the rumor is still real hammer. According to the daily economic news, on May 29 this year, Volkswagen (China) Investment Co., Ltd. and relevant government agencies in Anhui Province officially signed the letter of intent for cooperation, which will invest 1 billion euros to obtain 50% of the shares of Anhui Jianghuai Automobile Group Holding Co., Ltd., the parent company of Anhui Jianghuai Automobile Group Co., Ltd., and increase the holding of Jianghuai Volkswagen to 75%. It is understood that the contracting parties plan to complete the relevant transactions by the end of this year after obtaining the approval of relevant departments.
Before the news of real hammer, JACs share price had changed. It started to rise on May 20. In less than one month, the highest increase was over 130%.
Recent daily K-line chart of JAC
For the 80000 shareholders (data from Dongfang fortune) who are particularly worried at present, it is their most expected thing to be able to hearsay come true like JAC. Every editor he Jianling part of the content of this article is integrated from the daily economic news, economic observation network source: daily economic news editor in charge: Yang Bin_ NF4368