A few days ago, Geely Automobile and Lifan Technology announced the establishment of a new joint venture company, each of which invested 300 million yuan and held 50% of the shares. The company's business scope is the design, research and development, sales of complete vehicles, it is worth mentioning that the new company's vehicle business will not be limited to the replacement of electric models, the two sides work together to enter the new track.
Since 2020, Lifan Technology has announced the implementation of restructuring. In November 2020, Lifan Technology reached an Investment Agreement between the three parties. After the reorganization, the shareholding structure of Lifan Technology changed, and Manjianghong Fund became the new controlling shareholder, Chongqing Jianghehui, wholly owned by Li Shufu, became the second largest shareholder, and Lifan Technology was the third largest shareholder, forming a three-legged situation. In the first half of this year, the main business of Lifan Technology has achieved a turnaround.
Previously, in the restructuring of Lifan Technology's business, Geely Automobile has been firmly behind the scenes, and Geely Technology Group is located in front of the stage. According to the data, the Manjiang Red Fund, jointly initiated by Liangjiang Fund and Geely Metrojet, accounts for 29.99% of Lifan Technology. Liangjiang Fund and Geely Metrojet account for 51% and 49% of the Manjiang Red Fund respectively. It can be seen that Geely Fang indirectly accounts for 14.7% of Lifan Technology through the Manjiang Red Fund.
In addition, Chongqing Jianghehui Enterprise Management Co., Ltd., wholly owned by Geely Milestone, was introduced as an industrial investor, and it received 900 million shares of the conversion of shares, accounting for about 20% of the total share capital after the conversion. The original controlling shareholder, Lifan Holdings, still holds about 619 million shares, diluted from 47.08% to 13.66%, becoming the third largest shareholder.
That is to say, in the total shares of Lifan Technology, Geely Fang will account for 34.7%, and has become the controlling shareholder. Since entering the second half of the year, Lifan Technology has completed the transformation of the production line and delivered the new car off the production line. In November, the sales of new energy vehicles were 1140 units, an increase of 917.86% year-on-year; this year's cumulative sales of 1970 vehicles, an increase of 107.37%.
Lifan Technology is gradually on the right track, but if Lifan Technology wants to be fully revitalized, it is obviously not enough to rely on Geely to import one or two models. At present, Geely Technology has invested fewer models, currently only a Maple Leaf 80V model, this year will also launch 60S and 80X two power-changing models, production capacity has not been fully utilized, so it is still difficult to continue. Moreover, the Maple Leaf 80V model was also put into production in Jinan and Zibo.
Before the reorganization of Lifan Automobile, it was mainly based on traditional fuel vehicles, and in order to completely revitalize the company's assets, the introduction of traditional fuel models, research and development of hybrid models, and pure electric models is the best choice. As we all know, Geely Technology Group does not have such conditions, and it is imperative to introduce Geely Automobile.
Geely and Lifan newly established the company, with 6 board members, including 3 directors appointed by Lifan Technology and 3 directors by Geely Automobile. In the new joint venture company, Geely Fang holds more than 60% of the shares, and the right to speak should be further strengthened, and the enthusiasm for participation will be higher. Geely Automobile also announced that it will fully support the management and operation of the new joint venture's car manufacturing business.
It is worth noting that the two sides will coordinate travel companies and power exchange service companies, match models, and work together to build a power exchange network ecology and promote the development of urban power exchange standardization. The target company will continue to develop and upgrade its vehicles to meet market demand.
Holding Cao Cao Travel in hand, Geely Group, the parent company of Geely Automobile, announced in early December that it would launch the online ride-hailing aggregation platform "Happy Ten Million Homes", which is mainly self-operated compliance capacity, and is also open to third-party relatively high-quality compliance capacity providers. It can be said that the resources in the hands of Geely Automobile are more abundant.
Lifan Technology said that this investment is conducive to promoting the transformation and upgrading of the company's automobile industry, focusing on the research and development, sales and operation of complete vehicles (including but not limited to power-changing models), promoting the rapid increase of product market share in passenger cars, and promoting the sustainable, healthy and stable development of the company's future business.
At present, Lifan Technology only has a model imported by Geely Technology, Maple Leaf 80V adopts a flat battery pack design, NEDC mileage of 400+/500+ kilometers, a new generation of chassis power exchange technology can achieve 60 seconds of extreme power exchange, patented locking technology can achieve omnidirectional restraint and vibration prevention, high safety performance.
Nowadays, the planned models of the new joint venture company will no longer be limited to the replacement model, in order to promote the rapid increase in the market share of passenger cars, it is expected to introduce some fuel vehicles of Geely Automobile for secondary research and development and design, thus forming the brand of Lifan Technology. Or, the introduction of pure electric, hybrid model layout, so as to form a diversified development situation, which is in line with the needs of Lifan technology industry transformation.