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Geely wants to buy Lifan auto experts: take a fancy to its capital market operation value
Geely has become an intentional investor in Lifan's restructuring.

65438+1October 9, *ST? Lifan Co., Ltd. (60 1777) issued a progress announcement on recruiting and restructuring investors. Liangjiang Fund and Geely Major Investment will participate in the restructuring of Lifan shares as intentional restructuring investors.

According to the announcement, on September 14, 2020, Chongqing Liangjiang Equity Investment Fund Management Co., Ltd. and Geely Major Investment Co., Ltd. submitted the registration materials of the investors to be reorganized to the manager in the form of a consortium according to the provisions of the recruitment announcement.

Geely said that Geely Maijie Investment Co., Ltd. is a subsidiary of Geely Science and Technology Group, which is a large-scale industrial group oriented by scientific and technological innovation and driven by investment and operation. It is an industrial investor and operator in the field of cross-border science and technology ecology.

Geely and Liangjiang New Area have also had many interactions and cooperation. Since the beginning of this year, Geely Holding Group Shengbao (China) Financial Technology Project, Geely High-end New Energy Vehicle (Chongqing) Production Base Project, and Geely Technology Intelligent Power Exchange Station have successively landed in Liangjiang New District.

Regarding the significance of investing in the acquisition of Lifan, Geely said that there is no information to disclose at present, and everything is in accordance with relevant procedures.

Bai Yiyang, the international research department of China Merchants Bank, said that Lifan has basically lost its hematopoietic capacity and needs to introduce external forces. This time, the government led the restructuring of Lifan. The synergy at the passenger car level is really small. Judging from Lifan's current situation, Geely Automobile's demand for listed shell resources, production bases, qualifications, financial licenses and other resources is not high. Geely Technology Group, a subsidiary of Geely Holding, mainly participated in the restructuring of Lifan, adopting the mode of joint venture of state-owned funds. Why is it not owned by Geely Automobile, a Hong Kong stock? It is to build a listing financing platform under Geely Holding and put some assets such as technology and commercial vehicles into it.

From Geely's point of view, the debt risk and legal risk of Lifan are very high now, and taking over Lifan needs corresponding risk return. If the reorganization is completed, Geely Holding is expected to fully integrate Lifan's land in Chongqing, as well as listed shell resources, production bases, qualifications, financial licenses and other resources. In the future, Geely Holding is expected to use the opportunity of restructuring Lifan to cooperate with Chongqing and Liangjiang New Area in the fields of auto finance and scientific travel.

Lifan automobile lost its hematopoietic capacity

In 2003, Lifan Group acquired Chongqing Special Purpose Vehicle Factory and established chongqing lifan Automobile Co., Ltd. to build an automobile production base in Chongqing. Chongqing is an important place for the development of China's automobile industry, so Lifan Automobile enjoys dividends in industrial support and local policies.

Due to the lack of brand power of Lifan automobile, with the trend of market consumption upgrading, Lifan traditional power automobile gradually lost its market profitability. New energy vehicles have become the mainstream of the current automobile industry, and Lifan has not decisively entered strategically. At the same time, due to the lack of new energy technology accumulation and large capital investment, the transformation of Lifan Automobile has not achieved much.

From June to June this year, Lifan sold 978 traditional passenger cars, down 95.29% year-on-year, and sold 549 new energy vehicles, down 56.32% year-on-year.

According to the semi-annual report published by Lifan in 2020, the operating income in the first half of the year was only 65.438+0.584 billion yuan, down 69.42% compared with the same period of last year, and the net profit was-2.595 billion yuan, down 654.38+0.73.99% compared with the same period of last year. Total assets are about1696 million yuan, net assets are only1600 million yuan, down 9.6 12% year-on-year, liabilities are as high as1677 million yuan, and the asset-liability ratio is as high as 98.87%.

At the same time, according to the Announcement on Cumulative Litigation (Arbitration) issued by Lifan Automobile, Lifan also involved 1 178 lawsuits (arbitration) involving an amount of 5.037 billion yuan. Among them, as of June 18, 2020, the amount of litigation (arbitration) matters involved by the company (including subsidiaries) in recent 12 months totaled RMB 2.906 billion.

Geely takes a fancy to the operational value of Lifan Capital Market.

As early as June this year, there was news that Geely acquired Lifan Automobile, but Geely Automobile denied it at that time.

Yang Xueliang, spokesman of Geely Holding, also stressed in Weibo that "there is no such thing".

Ren Wanfu, a senior auto industry analyst, believes that Geely's acquisition of Lifan should be based on two main factors. First, Lifan is a listed company, and shell resources can bring convenience to Geely's operation in the capital market; The second is to lay out the southwest market. Judging from Geely's current factory layout, its factories are mainly located in the east and north, and the acquisition of Lifan can achieve a more comprehensive layout.

On September 28th, the Shanghai Stock Exchange held the 83rd review meeting of the Science and Technology Innovation Board Stock Listing Committee in 2020, and the results showed that Geely Automobile was approved.

Geely Automobile will become "the first car in science and technology innovation board".

Geely Automobile's prospectus revealed that its listing on the Science and Technology Innovation Board will open up financing channels in the capital market, which will help Geely to further diversify financing methods, optimize the capital structure, enhance the company's financial strength, and supplement the funds needed for the company's future strategic development such as "new four modernizations".

An industry insider said that the shell resources of *ST Lifan listed companies will help Geely return to the A-share market and get more funds. For Geely, one more listed company shell resource can also put other businesses in, which is more convenient for capital operation.

In addition, Lifan Motor has built an automobile production base in Chongqing, which is located in the southwest. Chongqing is an important place for the development of China's automobile industry, and Lifan Automobile enjoys dividends in industrial support and local policies.

According to public information, if Geely Automobile succeeds in taking over Lifan Automobile, it will also get *ST Lifan's local Yuanyang plot in Chongqing, which is currently worth 654.38+0 billion yuan.

This article comes from car home, the author of the car manufacturer, and does not represent car home's position.