He founded Lifan at the age of 50 and became the richest man in Chongqing at the age of 72. Three years after Yin Mingshan retired, his expectations of "Lifan is enchanting and Old Yin is enchanting" were dashed. (For details, see: "Exclusive·Depth?|? Eighty-year-old Yin Mingshan, did not wait for a successor, but waited for the endangered Lifan") Lifan, which is insolvent, is now forced to go bankrupt and reorganize. The house leaked and it rained all night. On the evening of October 13, the listed company *ST Lifan disclosed that Yin Mingshan and his family were investigated by the China Securities Regulatory Commission.

Lifan Co., Ltd. is in the critical stage of bankruptcy and reorganization. The introduction of new investors and new capital is the key to bailout. Previously, the white knight jointly formed by the local government and Geely Group , became the person intending to reorganize, causing the stock price of *ST Lifan (601777.SH) to soar. Today, the China Securities Regulatory Commission is investigating the Yin family, the actual controller, which has caused a lot of discussion among the outside world and made creditors worried.

Some market participants believe that the China Securities Regulatory Commission’s investigation will have limited impact on *ST Lifan’s bankruptcy and reorganization. "The investigation and punishment should not cause substantial obstacles to bankruptcy reorganization, and may be investigated while reorganizing." Xu Feng, senior partner of Shanghai Chuangyuan Law Firm, analyzed the trip (ID: carcaijing), saying that in advance Cleaning up irregularities will help create a good entry environment for new investors. *ST Lifan related people told Traveling (ID: carcaijing) that the company’s production operations are continuing as usual. ?

Behind Lifan’s transformation from prosperity to decline in the past ten years from 2010 to 2020, there are the helplessness of small car companies trying to jump on the trend, but unfortunately falling during the huge changes in the automobile industry; there are also companies that have shifted from family governance to modern times. In the process of governance, there is confusion in searching for your favorite successor. Now, after Geely's intervention, where Lifan will go is still a mystery.

A piece of notice made those who paid attention to Lifan feel excited again.

On the evening of October 13, *ST Lifan issued an announcement stating that the controlling shareholder Lifan Holdings and the company’s actual controllers Yin Mingshan, Chen Qiaofeng, Yin Xidi, and Yin Suowei received the "Investigation" issued by the China Securities Regulatory Commission. Notice", because Lifan Holdings, Yin Mingshan, Chen Qiaofeng, Yin Xidi, and Yin Suowei were suspected of violating laws and regulations in information disclosure, the China Securities Regulatory Commission decided to open an investigation against them.

Chen Qiaofeng, who was jointly investigated this time, is Yin Mingshan’s second wife, while Yin Xidi and Yin Suowei are Yin Mingshan’s sons and daughters.

The announcement shows that Lifan Holdings is the controlling shareholder of *ST Lifan, holding 47.08% of the company’s shares. Yin Mingshan, Chen Qiaofeng, Yin Xidi, and Yin Suowei all hold directorships in the company. The above four people directly hold 0.49% of *ST Lifan's shares in total; the above four people indirectly hold *ST Lifan through holding shares of Lifan Holdings. 47.08% of the shares. ?

Coincidentally, on the same morning, the first creditors meeting of the reorganization case of *ST Lifan and ten wholly-owned subsidiaries was held. At the meeting, relevant managers clearly pointed out that the key to Lifan's restructuring is to introduce new investors and successfully land the final funds. ?

Faced with the sudden inspection, public opinion abounded. Some people worry that the Yin family, the actual controller of *ST Lifan, is deeply involved in the investigation, which may interrupt *ST Lifan's path to survival. In fact, this investigation has already been traced. ?

In March this year, *ST Lifan disclosed the issue of illegal guarantees during self-examination: From June 2018 to January 2020, *ST Lifan illegally provided guarantees to its controlling shareholder Lifan Holdings for external loans. At that time, It involves an outstanding loan balance of 550 million yuan. The guarantee holders are Fudian Bank and Industrial and Commercial Bank of China. RMB 200 million of the above guarantee will expire on March 21, 2020. In April 2020, *ST Lifan disclosed information that Fudian Bank and Industrial and Commercial Bank of China sent relevant letters confirming the release of all the above-mentioned guarantee responsibilities of the company and its subsidiaries.

At that time, *ST Lifan explained that the handling staff had a misunderstanding of the guarantee matters and believed that the guarantee matters had not been submitted to the credit reporting system and were only internal formal requirements of the bank. The bank required the company to provide and When issuing relevant documents, the internal review was not strictly checked, and the company was negligent and did not fully understand that this behavior was an illegal guarantee.

Relevant people close to *ST Lifan confirmed to Travel Yike (ID: carcaijing) that it was the above-mentioned matters that triggered the investigation by the China Securities Regulatory Commission. ?

“The investigation and punishment should not cause substantial obstacles to bankruptcy reorganization, and may be investigated while reorganizing.” Xu Feng, senior partner of Shanghai Chuangyuan Law Firm, told Travel Yike ( ID: carcaijing) analyzed that the actual controller targeted by the investigation is not the listed company, and the conclusion of the investigation should be within the expectations of all parties, and the impact will not be great. ?

In Xu Feng’s view, the investigation also has a positive side: when it comes to problematic companies, it is difficult for intermediary companies to conduct due diligence. What investors who are late to the market fear most is the sudden revelation of hidden problems, which can cause them to advance or retreat. No. Today, clearing up violations in advance will help create a good entry environment for new investors. ?

During this glorious moment in 2010, Lifan became the first private passenger car company in China to be listed on the A-share market as a whole. The market value once reached more than 30 billion yuan. 72-year-old Yin Mingshan became the richest man in Chongqing. The family's book assets exceed 11 billion yuan.

“Trendyster” is a very appropriate term to describe Yin Mingshan with this historical term.