Zotye Automobile faces asset auctions and share dilution

Zotye Automobile's controlling shareholder Jiangsu Shengsheng faces judicial auction of 383.7 million shares representing 7.61% of the company, though the first round failed to attract buyers.

Separately, the automaker's Chongqing production lines valued at 28.1 million yuan were also auctioned with a starting bid of 19.7 million yuan but remained unsold.

The developments compound concerns over potential delisting risks due to negative net assets.