Lifan Technology (601777.SH) signs "Execution and Settlement Agreement"

Lifan Technology (601777.SH) announced that its wholly-owned subsidiary Chongqing Ruilan Automobile Manufacturing Co., Ltd. (formerly known as "Chongqing Lifan Passenger Vehicle Co., Ltd.", hereinafter referred to as "Ruilan Manufacturing" or "Party A") has filed a lawsuit with Chongqing First Intermediate People's Court (hereinafter referred to as "Chongqing First Intermediate Court"), demanding that Haibo Reide (Beijing) Automotive Technology Co., Ltd. (hereinafter referred to as "Beijing Haibo Reide" or "Party C"), Yuan Tao ("Party B") repurchase 93.9684% equity of Chongqing Haibo Reide held by Ruilan Manufacturing, and pay a repurchase amount of 51.1 million yuan and corresponding interest. After the signing of the "Execution and Settlement Agreement" through negotiations by the three parties, Yuan Tao will make a one-time payment of 16 million yuan for the equity repurchase to Ruilan Manufacturing. Once the "Execution and Settlement Agreement" becomes effective and the full repurchase amount is received, Chongqing Haibo Reide will no longer be included in the company's consolidated financial statements. Based on preliminary calculations, it is estimated that this will impact the company's net profit for the year 2025 by approximately 29 million yuan. The specific impact amount will be confirmed by the company's annual audit accountant.