Per reporter: Pei Jianru Per reporter Per editor: Sun Lei
Following the official announcement in December last year, Lifan Technology (601777. SH) has the latest progress in its new joint venture with Geely Automobile (00175.HK).
On the evening of January 24, Lifan Technology issued an announcement that the State Administration for Market Regulation issued the "Decision on Non-Implementation of Further Review of anti-monopoly review of concentration of undertakings" to the company and Geely Automobile, and decided not to carry out further review of the newly established joint venture between Lifan Technology and Geely Automobile, and the concentration can be implemented from now on. Geely Automobile designated its wholly-owned subsidiary, Ningbo Geely Automobile Industrial Co., Ltd., as the investor to set up a joint venture with Lifan Technology, completed the industrial and commercial registration procedures on January 24, 2022, and obtained a business license issued by the Chongqing Liangjiang New Area Market Supervision and Administration Bureau.
According to the announcement, the above-mentioned joint venture company is named "Chongqing Ruilan Automobile Technology Co., Ltd." (hereinafter referred to as Ruilan Automobile), with a registered capital of 600 million yuan, each funded by Lifan Technology and Ningbo Geely Automobile Industry Co., Ltd. of 300 million yuan, each holding 50% of the shares, the legal representative is Lou Yuanfa, co-president of Lifan Technology, and the business scope includes auto parts research and development, automobile new car sales, new energy vehicle sales, new energy vehicle replacement facilities sales, etc.
On January 25, Lifan Technology's stock price rose. As of the "Daily Economic News" reporter's press release, Lifan Technology's stock price rose by 1.78% to 5.72 yuan / share.
The joint venture is targeting the power exchange track
Geely Automobile said that Ruilan Automobile will launch a variety of power form products in the future, and will create a power exchange ecology based on self-developed power exchange technology and provide competitive products and services.
Previously, Lifan Technology said in the announcement that the company and Geely Automobile will coordinate travel companies and power exchange service companies, match models, and work together to build a power exchange network ecology. The establishment of Ruilan Automobile can promote the transformation and upgrading of Lifan Technology's automobile industry, focus on the research and development, sales and operation of complete vehicles (including but not limited to power-changing models), promote the rapid increase of product market share in passenger cars, and promote the sustainable, healthy and stable development of the company's future business.
Image source: Per reporter Duan Siyao photographed (data map)
It is worth mentioning that in May 2021, Lifan Technology, which completed the reorganization, restarted its automotive business, and its first new power-changing model, 80V, was imported by Geely Technology Group. It is understood that this new car is positioned as a pure electric B-class MPV, NEDC mileage in 400 ~ 500 kilometers, the fastest 60 seconds can complete the vehicle replacement, the first batch of models have been delivered to users in September 2021.
In December last year, Lifan Technology said on the investor interactive platform that according to the restructuring plan, industrial investors will comprehensively upgrade the manufacturing system by transforming the new energy vehicle production line of listed companies. At present, according to the reorganization plan, the technical transformation of the vehicle production line of Lifan Technology has been completed, as well as the injection and mass production of the first new energy replacement model 80V, and Chongqing Lifan Passenger Vehicle Co., Ltd., a wholly-owned subsidiary of the company, is responsible for the production and manufacture of the whole vehicle.
According to the plan, in addition to the 80V, Lifan Technology will also launch two power replacement models, 60S and 80X, of which 60S is a replacement car for the taxi market, and 80X is a large replacement SUV, mainly for official car customers.
Not only that, as an industrial investor of Lifan Technology, the first batch of intelligent substations of Geely Technology Group in the Chongqing Expressway Service Area have been put into operation in February 2021. In the next 5 years, the Chongqing high-speed service area will also invest 40 Geely Technology Group intelligent replacement power stations.
With the auspicious blessing, Lifan gradually recovered its vitality
It is worth noting that the current power exchange business is ushering in the "spring". A few days ago, the National Development and Reform Commission and other seven departments issued the "Implementation Plan for Promoting Green Consumption", which proposed to vigorously promote new energy vehicles, gradually cancel the purchase restrictions of new energy vehicles in various places, promote the implementation of supporting policies such as exemption from restrictions and right of way, strengthen the construction of supporting infrastructure such as charging and replacing, new energy storage, and hydrogenation, and actively promote the development of LNG for vehicles and vessels; promote the pilot application of new energy vehicle replacement models, and orderly carry out demonstration applications of fuel cell vehicles.
Image source: Daily Economic News Infographic
Prior to this, in November 2021, the National Development and Reform Commission issued the "Notice on Launching the Pilot Work on the Application of the New Energy Vehicle Power Exchange Model", which started the power exchange pilot work, and 11 cities were included in the pilot to accelerate the development of the electric vehicle power exchange mode.
Shengang Securities Research Report believes that the ownership of new energy vehicles continues to grow, the contradiction between charging facilities and energy replenishment demand is becoming increasingly prominent, and there is still a lot of room for growth in the energy replenishment market. Power exchange will become an inevitable form of popularization of new energy vehicles in all scenarios, and is an effective supplement to charging. Under the improvement of policies, capital and their own product strength, 2022 is expected to become the first year of the rapid development of the power exchange industry, and the listed companies in the power exchange industry chain are expected to benefit.
In this context, industry analysts believe that Lifan Technology, which focuses on the layout of power exchange products and businesses, has also ushered in a new opportunity to accelerate its return to the mainstream track.
In fact, with the support of Geely Automobile, the performance of Lifan Technology is improving. Official data show that in December 2021, Lifan Technology produced 1302 new energy vehicles, an increase of 2267.27% year-on-year; sales of new energy vehicles 1840 units, an increase of 1528.32%. From January to December 2021, Lifan Technology produced 3938 new energy vehicles, an increase of 271.86% year-on-year; the cumulative sales of new energy vehicles were 3810 units, an increase of 258.42% year-on-year.
According to the announcement released by Lifan Technology on January 22, from August 25, 2021 to January 20, 2022, Lifan Technology and its holding subsidiaries have received a total of about 5.8152 million yuan (unaudited) in government subsidies related to revenues. According to Lifan Technology's previous expectations, after the resumption of production of new energy vehicles, its operating income in 2021 is expected to increase by more than 50% compared with the previous year.
With the establishment of Ruilan Automobile, Lifan Technology is perhaps one step closer to returning to the mainstream track.
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