Recently, ?*ST Lifan (601777) released an "Announcement on the Adjustment Plan for Investors' Rights and Interests of the Reorganization Plan (Draft)", which announced that Geely's acquisition of Lifan, which has been rumored since last year, has been confirmed.

The specific reorganization plan shown in the announcement is: the "Manjianghong Equity Investment Fund Enterprise (Limited Partnership)" jointly initiated by Geely Maijie and Liangjiang Fund, and Geely Maijie, Geely Technology, or both have a shareholding ratio of 70%

Companies with absolute holdings of more than % have become the main implementation entities involved in corporate restructuring investments.

The announcement shows that the company's existing total share capital is 1.314 billion shares, including 27.9313 million restricted shares that need to be repurchased and canceled under employee equity incentives, and 1.286 billion shares without sales restrictions.

The reorganization plan will be based on 1.286 billion circulating shares, and the capital reserve will be transferred to share capital at the ratio of 25 shares for every 10 shares, with a total of 3.214 billion shares transferred.

These 3.214 billion converted shares will not be distributed to shareholders, and will all be distributed and disposed of by the manager in accordance with the provisions of the reorganization plan.

It is reported that approximately 965 million shares of the transferred shares will be distributed to creditors of Lifan and its ten subsidiaries to pay off debts.

Approximately 400 million shares will be distributed to Lifan's creditors to pay off debts, and approximately 560 million shares will be provided to ten subsidiaries for distribution to creditors to pay off debts.

After the reorganization is completed, the controlling shareholder of the listed company will be changed from Lifan Holdings to Azolla Fund. Geely Maijie and Geely Technology Group will become the main force in saving Lifan.

As we all know, Lifan is a hot potato.

According to the announcement issued by *ST Lifan in August, the total amount of undisclosed litigation (arbitration) involved in the company (including subsidiaries) in the past 12 months was approximately 298 million yuan; there were 1,178 lawsuits (arbitration) involved, with a cumulative amount of 5.037 billion yuan.

The high debt level has undoubtedly left a big hole for Geely to fill.

So what is the biggest benefit of Geely’s acquisition of Lifan?

Some people say that the greatest value lies in the motorcycle business and the land it holds. In fact, Geely is playing a bigger game - the battery replacement market.

As a review, in May this year, battery swapping stations were included in the "Government Work Report" for the first time as an important part of new infrastructure. The battery swapping model has also ushered in a new development situation and become the next trend for new energy vehicles.

In response to national policies, new energy vehicle companies are actively implementing the policies.

On September 16 this year, the Geely Technology Group's power swap mode press conference was held in Chongqing. Geely Technology's smart power swap station made its debut nationwide. The power swap mode was the first to be launched in Liangjiang New District, Chongqing. This year, it plans to complete the construction of 35 power swap stations in Chongqing.

As early as July 30 this year, Changan New Energy also established a power exchange alliance and held a launch ceremony with the theme of "Enjoying Wisdom, Smooth Green Travel".

Obviously, the biggest benefit of Geely Automobile taking over Lifan is to use Lifan's existing resources to develop the southwest "power swap" market.

According to the announcement, the transfer conditions for the industrial investors include that the industrial investors will provide high-quality industrial resources to the listed company, including but not limited to assisting in building Lifan into the only listing platform for Geely Technology Group's battery-changing vehicle manufacturing, and choosing the opportunity to integrate mid-to-high-end products into the market.

The injection of intelligent network-connected battery swapping business, through asset restructuring, has introduced listed companies to the battery swapping new energy vehicle production, automobile and Motorcycle industry integration opportunities, and industries that are encouraged in the country's "New Energy Vehicle Industry Development Plan (2021-2035)"

Technical support, etc.

To put it simply, Geely wants to use Lifan to expand its battery swap business.

According to the plan, Geely will build 35 power swap stations in Chongqing this year and more than 200 power swap stations by 2023.

Lifan's Yifeng Energy and "Panda Auto" based on the battery swap model can serve as ready-made carriers for Geely's battery swap business.

As a result, Geely Automobile will also become the biggest competitor of local car companies in Chongqing under the new trend.

This article comes from the author of Autohome Chejiahao and does not represent the views and positions of Autohome.