According to the public announcement of Lifan Industry (Group) Limited, the company will sell 100% of its shares of Chongqing Lifan Motors Pty Ltd to Chongqing Xinfan Machinery Limited Company, which is the wholly-owned subsidiary of CHJ Automotive.
Dec 17, 2018 /EqualOcean/ - According to the public announcement of Lifan Industry (Group) Limited, the company will sell 100% of its shares of Chongqing Lifan Motors Pty Ltd to Chongqing Xinfan Machinery Limited Company, with the transaction worth USD 94.25 million. Chongqing Xinfan Machinery Limited Company is the wholly-owned subsidiary of CHJ Automotive, whilst the legal representative of Xinfan Machinery is the co-founder of CHJ Automotive – SHEN, Ya Nan (沈亚楠).
By purchasing Lifan Motors, CHJ Automotive will acquire the New Energy Vehicle Production Qualification, the license approved by the National Development and Reform Commission to produce new energy vehicle. With the Production Qualification, CHJ Automotive can start to produce and sell new energy vehicle legally.
In a public notice of a plant renovation project announced by Suzhou Environmental Protection Bureau before, Chongqing Lifan Motors would set up a project with an annual production capacity of 100,000 extended-range electric SUV in Changzhou, and lease the existing plant of the CHJ Automotive company. After the news came out, some media speculated that the two sides would apply the "OEM" mode, commonly used by other EV maker startups like NIO and XMotors, to produce "Leading Ideal ONE", the first electric SUV of CHJ Automotive. Now the fact is turned to be that CHJ Automotive and its founder LI Xiang (李想) have a much bigger ambition, to produce vehicles all by themselves.
Time is running out, and the acquisition is definitely a big and solid step for LI Xiang and CHJ Automotive. The company, with the total funding of USD 834.49 million, a new energy vehicle company in China focusing on Intelligent Mobility has grasped the chance to enter the market legally with this purchase.
- Author: ZHANG Fan; TANG Shiyu and ZHOU Dao contributed to this article. Write to ZHANG Fan at ZhangFan@EqualOcean.com