Lifan shares: 1.1 billion to build parts export base

Just last month after the announcement of the introduction of luxury motorcycles in Italy, Lifan (601777) disclosed the announcement of its subsidiary Chongqing Lifan Passenger Car Co., Ltd. to build a component export base. According to the announcement, the construction goal of the Lifan Auto Parts Export Base project is to produce 150,000 sets of models and accessories for export annually. The total investment of the project is 1.09 billion yuan, of which the newly-added construction investment is 881 million yuan and the initial working capital is 217 million yuan.

The semi-annual report disclosed by the company at the same time shows that the company’s export revenue has increased by 50%, and domestic sales and exports of passenger vehicles have achieved significant growth year-on-year. In the first half of 2011, the company achieved a total operating revenue of 4.136 billion yuan, an increase of 25.11% over the same period of last year; and a net profit of 206 million yuan, an increase of 1.82% over the same period of last year. Among them, exports achieved sales revenue of 2.02 billion yuan, an increase of 48.95% over the same period of last year.