Shanghai, August 25, ZXZC-LIFAN released its 2017 semi-annual report on August 23. The report shows that operating income of LIFAN in the first half of 2017 reached 6.298 billion yuan, a year-on-year increase of 24.1%. Net profit belonging to the parent company was 121 million yuan, a year-on-year decrease of 32.02%.

In the first half of this year, LIFAN sold a total of 56,500 units of new cars, a decline of 1.8%. The sales of new energy vehicle were only 1,624 units, a decline of 59.21%. Sales of new energy vehicles in 2016 were 4,343 units, a decline of 62.98%.

Its bad sales performance has a close relationship with LIFAN’s cheating for subsidy. On October 10, 2016, the Ministry of Finance issued a notice that 2,395 units of those for which LIFAN applied for central fiscal subsidy did not meet the application requirements, involving a central government subsidy funds of 114.08 million yuan. Since then, LIFAN was deprived of the right of getting 2016 central government subsidy funds.

In addition, LIFAN only received 9,248,100 yuan from government subsidy in the first half of this year, among which only120,000 yuan was for new energy vehicles.

In the first half of this year, the Ministry of Industry and Information Technology of the People’s Republic of China(MIIT) keeps on supervising on the development of LIFAN’s new energy vehicles. On February 4, MIIT issued an administrative penalty decision, which revokes the product announcement of LF7004DEV and LF7002EEV, suspends LIFAN from applying for recommended model for new energy vehicles and demands LIFAN to conduct a rectification for a period of 2 months.

LIFAN said in the announcement that Chongqing LIFAN has restored its application for the qualification of recommended model for new energy vehicle on May,2. They have also solved the previous matter mentioned by the MIIT Penalty Decision. LIFAN will further accelerate the pace of developing the industry of new energy in the future.