Zotye Automobile shareholder faces forced share reduction

Zotye Automobile (SZSE:000980) announced that shareholder Jiangsu Shenshang Holdings Group Co., Ltd. will undergo a forced reduction of 81,147,337 shares, representing 1.61% of the company's total share capital. This action, mandated by the Changchun New Area People's Court, will decrease Jiangsu Shenshang's holdings from 14.81% to 13.20%, leaving them with 665,852,663 shares. Zotye clarifies that this change will not affect the company's controlling shareholder status or its corporate governance and operations. All shares held by the controlling shareholder and its affiliates are currently frozen. The court's order stems from an enforcement case with the Jilin Jiutai Rural Commercial Bank. The shares will be sold via block trade at a price not lower than the court-determined reserve price. The company pledged to monitor the situation and fulfill its disclosure obligations.