LIFAN MOTORS

Founded in 1992, Lifan Industry (Group) Co. Ltd (hereinafter called Lifan Group) with 13,715 employees is one of the biggest private-owned enterprises in China. Over the past 16 years, specializing in research and development, manufacturing and marketing (including international trade) of automobile, motorcycle and engine, Lifan Group has rapidly matured into a prestigious enterprise with the integration of financial sector, real estate, football industry and a R&D center. In 2007, it was market leader with statistical sales revenue at RMB12.16 billion yuan, foreign exchange through export at USD409.60 million, and patent ownership of 4061. Lifan Group has been consecutively selected among Chinese Top 500 enterprises and ranks the first among Chongqing Top 50 private-owned enterprises.

In 2003, Lifan Group established Chongqing Lifan Automobile Co. Ltd (hereinafter called Lifan Automobile) through purchasing Chongqing Special Purpose Use Vehicle Manufacturing Co., Ltd, strategically realizing the expansion from motorcycle to automobile industry. In 2004, through the restructuring of Yunnan Dali Junma Automotive Company which manufactures light and heavy trucks, Lifan Automobile greatly leaped forward in production and sales.

In terms of scale, Lifan Automobile will input a total investment of RMB2.4 billion yuan into several projects. The first phase of passenger car project including stamping, welding, painting and assembling lines, an engine plant and a research center has been completed with the construction area of 200,000 square meters. The second phase of 270,000 square meters of car plant and 90,000 square meters of engine plant expansion will be finished soon. By 2010, the annual production capacity will mount up to 300,000 CBU units and 400,000 car engines respectively from present 200,000 and 100,000.

In order to complete production line and build up core competitiveness, Lifan Automobile plans to launch SUV, MPV, electric car, and mini-car in progression to supplement the existing passenger car models of LF520, LF520i, LF620 and LF320. The first phase of mini-van plant with 630,000 square meters is under construction and will produce as many as 100,000 units by the end of 2009. Projects for SUV, MPV and electric car have been put on the agenda.

In terms of technology research and development, Lifan Automobile adheres to the principle of independency and innovation. It has stepped over industrial competition barriers and realized sustainable growth through combined development and technology procurement, which creates core strategic resources and broadens development horizon.

Lifan Automobile boasts with patent ownership of 346 and a team of 50 technology and management experts from advanced automotive manufacturers home and abroad including Chrysler. Granted with export right since 1998, it has been dedicated to expansion on the international market. Lifan Group won the laurels of the trade in China with USD40.96 billion of foreign exchange through exportation in 2007. The sales network of Lifan products has spread across 118 countries in South-east Asia, West Asia, Europe, Africa and South America.

March 2007 saw the birth of the first Lifan520 passenger car in Vietnam, In August Lifan passenger car came off line in Russia and over passed crash test under European standard at one shot, and in November of the year, Lifan car successfully passed E-mark homologation.

In April 2008, Lifan car successfully passed E—NCAP 64kilometers’ crash test with four stars in Russia, which is the best of Chinese car ever achieved overseas. With the guidance of Quality Dominate the Life of Products and Customers Are the Real Boss', Lifan car holds a strong quality guarantee system for its successful take-off on the international market. By 2007, Lifan520 has been exported to 50 countries including Russia, Ukraine, Vietnam, Iran, Algeria, Nigeria, Germany, France, Spain, Brazil and Columbia with five assembly factories built overseas. The exports of Lifan Group in 2008 is predicted to exceed USD600 million.