Zotye Automobile faces operational halt as assets seized, shares auctioned

Zotye Automobile announced its subsidiary, Hunan Jiangnan Automobile Manufacturing Co. Chongqing Branch, had its T300 vehicle assembly line and related equipment seized and dismantled. This action by the Chongqing Bishan District People's Court, following two failed judicial auctions, means Zotye cannot resume T300 model production in 2025, raising significant doubts about its operational viability.

Concurrently, Zotye's controlling shareholder, Jiangsu Deep Commercial Holding Group, and its concerted parties have seen 786,290,927 shares (15.59% of total share capital) judicially auctioned. While 1,964,546 shares (0.04%) of Shenzhen National Digital Information Technology have been transferred, other substantial blocks, including 74,410,579 shares (1.48%) held by Jiangsu Deep Commercial, remain subject to transfer to creditors following failed auctions.

The combined impact of asset seizures and ongoing judicial auctions of shareholder equity highlights a challenging environment for Zotye Automobile. The company said these developments stem from judicial enforcement and advised investors to exercise caution due to inherent risks.