Unexpectedly, Geely still extended a helping hand at the critical moment when Lifan was on the verge of bankruptcy.

On November 9, ST Lifan issued the "*ST Lifan Manager's Announcement on the Adjustment Plan for Investors' Equity in the Reorganization Plan (Draft)", confirming that Geely Maijie Investment Co., Ltd. and Chongqing Liangjiang Equity Investment Fund Management Co., Ltd. will form a consortium.

Become an investor intending to restructure.

Obviously, for Lifan, this is undoubtedly a great thing.

After all, Lifan is now insolvent, and if someone is willing to invest in the acquisition, it is already an almost happy ending.

It should be pointed out that Lifan, as an established car company, does have certain value.

Whether it is production qualifications or travel services such as Panda cars and battery swaps in the new energy field, they are valuable resources in the market.

And this is exactly why Geely is able to donate generously.

On November 10, when Geely took over the deal, Lifan Motors issued an announcement stating that on August 21, 2020, the Chongqing Fifth Intermediate People's Court ruled on the reorganization case of Lifan shares in accordance with the law and issued a "Decision Letter" on the same day.

The announcement pointed out that the liquidation team of Lifan Group Enterprises was designated as the manager of Lifan Shares and was responsible for carrying out various reorganization tasks.

In this reorganization, the manager confirmed through open recruitment that Geely Maijie Investment Co., Ltd. and Chongqing Liangjiang Equity Investment Fund Management Co., Ltd. became intended investors in the reorganization as a consortium.

In this regard, Lifan Co., Ltd. stated that after the implementation of the reorganization plan, the company's asset and liability structure will be substantially improved, and its sustainable operating capabilities and profitability will be enhanced.

According to another announcement, Azolla Equity Investment Fund will replace Lifan Shares and become the controlling shareholder of *ST Lifan.

In fact, Azolla Fund is a combination of Chongqing Liangjiang Equity Fund and Geely Maijie. It can be seen that the relationship between Azolla and Geely is extremely deep.

The news released on November 10th was recorded in the "Reorganization Plan Adjustment Plan" and stated that Lifan will hold the second creditors' meeting and shareholders' meeting on November 25th. That is to say, as long as both parties reach an agreement at the meeting

In agreement, Geely's investment in Lifan was completely established.

Geely’s “little thoughts” A very important strategy of Geely Automobile in recent years is “buy, buy, buy”. It has successively acquired Lotus, Malaysia’s Proton Motors and other car brands, and all of them have brought good profits to Geely.

.

Geely's generous donation is naturally for profit.

As we all know, Geely has been promoting the battery replacement layout in a high-profile manner recently.

In September this year, Geely Technology Group’s smart power swap station debuted in Chongqing.

Geely Automobile stated that it plans to complete the construction of 35 battery swap stations in Chongqing this year, and plans to complete more than 200 battery swap stations in 2023.

So far, Geely has signed contracts for more than a thousand battery swap stations across the country.

Coincidentally, Lifan has also invested heavily in the field of battery replacement.

In May 2018, Lifan announced that it would raise 2.48 billion yuan through private placement for the development of intelligent lightweight quick-change pure electric vehicle platforms, intelligent new energy vehicle energy station projects, and 1.6 billion watt-hour lithium batteries for intelligent new energy vehicles.

and other projects.

Therefore, Lifan Co., Ltd. is bound to play a key role in Geely's battery swap strategy.

In addition, Lifan's Panda Automobile has been operating in the field of exclusive cars for many years and now has 3.5 million registered users. Geely Automobile has also made many attempts in the fields of time-sharing leasing and exclusive cars, such as the current

Caocao Travel is currently operated by Geely Automobile.

Therefore, there is a certain amount of room for imagination as to whether Panda Auto will merge with Caocao Travel in the future.

If this comes true, it will undoubtedly further increase Geely's market share in this field.

It can be seen that Geely took over Lifan and is targeting the new hot spots in the current new energy market - the fields of battery swapping and mobile travel.

As the saying goes, there are no permanent friends, only permanent interests. This principle also applies to the automobile market.

Fortunately, although Lifan is now "precarious", it still has market value that can be exploited. Otherwise, who would be willing to take over this "hot potato"?

Is a blessing or a curse?

Although taking a stake in Lifan can accelerate Geely's strategic layout in the new energy market, whether it is a blessing or a curse still needs to be considered in the long term.

In fact, Lifan Motors has been in decline since 2018, especially after Lifan founder Yin Mingshan has reached old age. It has become a rather difficult problem for Lifan to have no one to take over the "mess". Previously, it was reported online

It was revealed that none of Yin Mingshan's children took over Lifan Motors. However, in June this year, Yin Mingshan's granddaughter Yin Anni, who was born in 1995, entered the Lifan board of directors, leaving a "fire" for the Yin family in Lifan.

However, this matter is generally not favored by the industry.

After all, such a "mess" is hopeless in front of Yin Mingshan, a experienced "veteran", let alone Yin Anni, a 25-year-old grandson who has just graduated.

Don’t forget that Lifan’s former chairman Yin Mingshan had previously monopolized 900 million in debt.

Of course, this is indeed the case. Judging from the 2020 financial report, Lifan lost nearly 200 million yuan in the first quarter of this year. The loss expanded to 2.4 billion yuan in the second quarter. In the third quarter, Lifan is expected to lose 1 billion yuan. The total loss in the first three quarters is

Up to 3.6 billion.