Brand fall, Zotye New Energy officially ruled bankruptcy and liquidation

We learned from public information that on December 2*ST Zotye officially issued an announcement stating that Zotye Automobile Co., Ltd. (hereinafter referred to as the 'Company') recently received from the Yongkang People’s Court of Zhejiang Province (hereinafter referred to as the “Yongkang Court”). ') issued the 'Civil Ruling' ([2020] Zhejiang 0784 Broken No. 20), it was learned that the company's wholly-owned secondary subsidiary Zhongtai New Energy Automobile Co., Ltd. (hereinafter referred to as 'Zhongtai New Energy') was unable to pay off by creditors On the grounds that the assets were not enough to pay off all the debts, they were filed for bankruptcy and liquidation. The relevant situation is announced as follows:

I. Bankruptcy and liquidation of wholly-owned subsidiaries

The company recently received the 'Civil Ruling' issued by Yongkang Court ([2020] Zhejiang 0784 No. 20), the applicants Hangzhou Tiecheng Information Technology Co., Ltd. and Kumho (China) Tire Sales Co., Ltd. The company applied for bankruptcy liquidation of Zotye New Energy on the grounds that Zotye New Energy was unable to pay off its debts due and its assets were insufficient to pay off all debts. According to the relevant provisions of the 'Enterprise Bankruptcy Law of the People's Republic of China

1. Filing a case to accept the bankruptcy liquidation applications of the applicant Hangzhou Tiecheng Information Technology Co., Ltd. and Kumho (China) Tire Sales Co., Ltd. against the respondent Zhongtai New Energy Automobile Co., Ltd.

2. Designate Zhejiang Jingheng Law Firm as the bankruptcy administrator.

Second, the basic situation of Zotye New Energy

Name: Zotye New Energy Automobile Co., Ltd.

Type: Limited Liability Company (sole proprietorship of a legal person that is not invested or controlled by a natural person)

Residence: Building 5, No. 509, Wenjin North Road, Baiyang Street, Hangzhou Economic and Technological Development Zone (see attached picture for details)

3. The impact of bankruptcy liquidation on the company

Zhongtai New Energy is a wholly-owned secondary subsidiary of the company. After entering the bankruptcy liquidation process, if Zotye New Energy subsequently changes to a reorganization process due to legal circumstances and the company acts as a reorganization investor and promotes Zotye New Energy With the successful reorganization, Zotye New Energy will become an important source of profit for the company and will play an important role in the company's continued operation and development. If Zotye New Energy does not switch to the reorganization process and is finally declared bankrupt by the court or, although it is converted to a reorganization process, but other parties other than the company act as reorganization investors, the company will lose control of Zotye New Energy, and Zotye New Energy It will no longer be included in the scope of the company's consolidated statements.

In addition, on September 17 this year, *ST Zotye issued an announcement stating that the creditor Zhejiang Yongkang Rural Commercial Bank proposed to the court to pre-weight Zotye Automobile due to the failure to repay the 150 million loan and interest. The entire application. At the same time, Zotye has received the 'Pre-Reorganization Application' submitted by the creditors to Yongkang Court. Announcement information shows that in August 2019, with government support, four banks provided Zotye Automobile with a total of 3 billion yuan in loans for the company to resume production in stages. Among them, Zhejiang Yongkang Rural Commercial Bank provided a loan of 150 million yuan to Zotye. The contract agreed that the annual interest rate of the loan was 4.35%. The loan period was one year from the first loan fund withdrawal date. Zotye should pay off all the debts before the end of the loan period. debt. After Zhejiang Yongkang Rural Commercial Bank issued the loan, Zotye should pay interest until March 20, 2020, and the loan expires on August 14, 2020.

Zhongtai Auto’s 2019 financial report shows that during the reporting period, it achieved operating income of 2.986 billion yuan, a year-on-year decrease of 79.78%; net profit lost 11.19 billion yuan, a year-on-year decrease of 1498.98%. Regarding the 2019 financial report of Zotye Auto, the audited Tianzhi International Accounting Firm (Special General Partnership) stated in the audit report that it “cannot express an opinion”. Based on this audit opinion, the Shenzhen Stock Exchange has implemented a 'delisting risk warning' for Zhongtai stock trading, and its stock abbreviation has been changed from 'Zhongtai Auto' to '*ST Zhongtai' on June 24. If the 2020 financial report fails to pass the audit of the company's According to the audit, Zotye will be suspended from listing.

Although Zotye Automobile has not fallen, it faces multiple difficulties. The 2020 semi-annual financial report shows that the company's revenue for the first half of the year was 770 million yuan, a year-on-year decrease of 76.69%; net profit was a loss of 1.034 billion yuan, a further increase from the net loss of 290 million yuan in the same period last year. Due to the deterioration of Zotye Auto’s performance, many accounts receivable may not be recovered. The half-year financial report shows that the book balance of accounts receivable from Zotye’s combined provision for bad debts in the first half of the year totaled 3.887 billion yuan, and provision for bad debts was 782 million yuan. The Shenzhen Stock Exchange believes that all the aforementioned bad debts are expected to be uncollectible.

Editor's comment:

In fact, Zotye New Energy went into bankruptcy and liquidation can be regarded as an unexpected thing. From the employee's rights protection in April at the beginning of the year, to the later payment arrears with suppliers, the survival of this fringe car company has been repeated time and time again. Was pushed over the cusp of the storm. More and more marginal car companies are eliminated by the market, which also shows that it is impossible to replicate the glory of Zotye again by imitating. If you want to survive in today's car market, you must have core technologies and Ru0026D capabilities. , Otherwise the ending of the 'naked swimmer' can only be out.

It is worth noting that Zotye New Energy Automobile Co., Ltd. applied for bankruptcy and liquidation this time. How to deal with the follow-up maintenance and repair of existing owners of this brand, we will continue to pay attention to more news.