This time, Lifan holding, the controlling shareholder, applied for bankruptcy. According to the data of shareholders, it owns 47.08% shares of Lifan Group, which is the largest shareholder of Lifan Group.
According to the data of tianyancha, this Lifan holding is actually a company controlled by Yin Mingshan, founder of Lifan Group. The legal person is his wife Chen Qiaofeng, and the shareholders include Yin Mingshan and his two children.
It is understood that Lifan holdings application can be accepted by the court and enter the reorganization procedure, which may have an impact on the companys equity structure.
If the company has been declared bankrupt according to the reorganization rules, the creditors will enter the bankruptcy proceedings. If the company is declared bankrupt, the company will be bankruptcy liquidation, and its shares will face the risk of delisting.
In this regard, Lifan shares said that since 2017, the company has continued to face debt risks. Although it has tried its best to formulate relevant plans and resolve relevant problems through various ways, it still can not completely get rid of its liquidity crisis, resulting in insufficient assets to pay off all debts and applying to the court for judicial restructuring.
According to the data, after 2014, Lifan shares had a substantial increase in the asset liability ratio. At the end of 2017, its asset liability ratio was 75.72%. At the same time, according to the financial report of Lifan shares in 2019, the company realized revenue of 7.45 billion yuan in 2019, a year-on-year decrease of 32.35%; the net profit loss of parent company was 4.682 billion yuan, a year-on-year decrease of 1950%, resulting in the companys annual asset liability ratio soaring to 85.4%.
In June this year, Lifan Co., Ltd. announced that at present, 392 lawsuits (arbitrations) involving 2.906 billion yuan have been involved in the company, among which 221 cases have been adjudicated (arbitrated), involving an amount of 1.836 billion yuan. In the above 221 cases, the company is the defendant and has to bear the corresponding amount of losses; 82 cases have not yet been heard, involving 580 million yuan.
In 2019, Lifan shares sold 22500 traditional passenger cars, down 75.52% year-on-year; 3091 new energy vehicles, down 69.49% year-on-year. In the first half of this year, the sales volume of Lifan passenger cars was only 978, a year-on-year decrease of 95.29%; the cumulative sales of new energy were 549, with a year-on-year decrease of 56.32%.
Similarly, in the motorcycle sector, Lifan also experienced a decline. In the first half of this year, the cumulative sales of motorcycles and motorcycle engines were 213500 and 355000, respectively, down 29.03% and 11.28% year-on-year. However, its general gasoline engine business was relatively good, with sales of 185400 units in the first half of the year, up 20.18% year on year.
Lifan crisis has a long history
The interior of Lifan has already been Stormy
On June 30 this year, Lifan shares issued a notice saying that Jiali Jianqiao, a creditor, applied to the court for restructuring the company on the ground that the company could not pay off its due debts and was obviously lack of solvency, but it still had restructuring value.
In fact, before Lifan holdings applied for judicial restructuring, Lifan shares had issued an announcement on the evening of July 9, saying that its 10 wholly-owned subsidiaries had already been applied to the court for reorganization by creditors because they could not repay their debts.
According to the announcement issued by Lifan shares on July 21, Yang Bin, who has resigned, has reduced his shares by 52500 shares and Marco has reduced his shares by 109400 shares, both of which have been reduced by more than half.
This year, Lifans situation is even worse: from January to June, Lifan sold 337 vehicles, with an average monthly sales of less than 60.
In 2020, Yin Mingshan will be 82 years old. Ten years ago, Yin Mingshan, 72, led Lifan Group to go public, and he became the richest man in Chongqing. At that time, he was an inspirational idol worshipped by countless Chinese people. His life is full of legends.
Yin Mingshan was born in Fuling, Chongqing in 1938. At the age of 20, he was still a senior three student in Chongqing No.1 middle school. He was about to enter the University. However, he was denounced because of some capitalist tendency remarks, which led to his 20-year prison life.
Yes, youre right. He was shut up for 20 years because he said something. If it wasnt for the end of the movement in 1978, he might have to spend the rest of his life on the reform through labor farm.
Yin Mingshan in prison did not sink. He began to read a lot of books and learn English by himself. When he was released from prison 20 years later, his English level had reached the level of being able to translate English books. Because of this, he got a job as an English teacher in Chongqing Design Institute soon after he was released from prison.
But when the teachers salary was too low, Yin Mingshan quit his job and started a book business. In 1985, Yin Mingshan founded the Chongqing Vocational Education Publishing House. He edited and distributed the middle school students dime series. Each book earned 1 cent, sold 10 million copies and earned the first 100000 yuan in his life.
But this one cent business has gradually failed to enter Yin Mingshans eyes. He felt that it was difficult for the book business to expand, and he was constantly looking for opportunities to do a big job.
In the 1990s, Yin Mingshan found business opportunities while chatting with a group of friends from a motorcycle repair shop.
A friend told him that he needed hundreds of engines a month, but he had to go to Henan to buy them. The price was very high and the quality was very poor. Although there were two big motorcycle giants in Jialing and Jianshe, they were not willing to sell the engines to small repair shops at all. They could only go far and near.
Yin Mingshan thought, if he could produce the motive force and sell it to these small factories, wouldnt it be a way of making money? So he thought of a way: go to the maintenance department of the construction group to buy the main parts of the engine, and then assemble the engine himself. The cost is only 1400 yuan, but it can be sold for nearly 2000 yuan. It took a long time for the construction group to react and ordered that a part should not be sold to Yin Mingshan, but it was too late.
Yin Mingshan, who has mastered the core technology of engine, has produced his own motorcycle Lifan motorcycle.
In the 1990s, as a new means of transportation, motorcycles used to be a symbol of wealth for Chinese families. Yin Mingshan seized this opportunity to create wealth and made his way to Chongqing, where motorcycle giants gathered. He became a Chinese motorcycle giant who came from behind.
After ten years of painstaking management, Lifan has created many domestic first, the first four stroke 100 engine, and the first motorcycle enterprise to buy a League a football team. By 2003, Lifan motorcycle has become the largest motorcycle manufacturer in China, and Yin Mingshan has been on the Forbes China rich list for many times.
Yin Mingshan, a late bloomer, chose to retire at the age of 79 in 2017. Unlike many Chinese entrepreneurs, he did not choose to hand over the enterprise to his children. Instead, he chose Mou Gang, who had worked in Lifan for many years, and his ability and reputation were highly valued by him.
Now Lifan Group has a lot of debt crisis, and Yin Mingshan, 82, may have to personally preside over the overall situation, but whether he can turn the tide back is of little hope.
One step wrong, all lose
Todays defeat seems to have sown the seeds of crisis since Yin Mingshans Lifan became Chinas largest motorcycle manufacturer in 2003.
From the performance of Lifan motor in these years, we can clearly see the failure course of Yin Mingshan.
From 2015 to 2018, the sales volume of Lifan new energy vehicles has been declining, with 14874, 5550, 7738 and 10166 respectively. In the first five months of 2019, the sales volume of Lifan new energy vehicles was only 1011, a sharp drop of 57.77% year-on-year.
Over the past decade, Lifan has launched a total of 28 models of various types of cars, and now only one model is on sale, and 27 models are discontinued or discontinued.
In October 2016, Lifan Co., Ltd. disclosed that there were 2395 vehicles that did not meet the requirements of new energy vehicle declaration in 2015, involving 114 million yuan of central financial subsidies.
In that year, the sales of Lifan automobile fell to the bottom, and some of the brands that had not been easy to manage disappeared. Even if Yin Mingshan had the ability, he would not be able to recover.
In the past ten years, Lifan automobile has launched a number of models, but in the fierce competition in the automotive market, it has not killed a blood. Whether it is traditional cars or new energy vehicles, Yin Mingshan has made great efforts to try, in exchange for the financial collapse.
ecide on what path to follow? So far, there is no conclusion
A month ago, Sansan electric appliance, petrochemicals and commerce, and Yijing environmental protection applied to the court for reorganization of Lifan passenger cars, Lifan automobile sales, Lifan engine, wireless oasis and peak energy.
It has been reported that Geely Autos acquisition of Lifan shares has become a foregone conclusion. At that time, Lifan shares will only retain the motorcycle sector, and the remaining parts, including shell resources of listed companies, production qualifications and financial licenses, will be taken over by Geely.
In this regard, Geely Holding Group related person in charge said: I do not know about this matter.
Source: Chongqing business daily comprehensive interface news, Chinese chronicles, China Fortune Group, auto watch, International Finance News_ NB12679
Source: Chongqing business daily comprehensive interface news, Chinese chronicles, China Fortune Group, auto watch, international finance news