Zotye Automobile shares fluctuate amid asset seizures, ownership shifts

Zotye Automobile reported abnormal stock trading, with its share price deviating by over 20% on September 8th and 9th, 2025. This fluctuation follows recent disclosures of asset seizures and changes in its controlling shareholder's equity. The company’s T300 vehicle assembly line and related equipment were forcibly dismantled by the Chongqing Beishan District People's Court, making it unable to resume T300 production this year and highlighting ongoing operational uncertainties.

In a significant ownership shift, 456,104,553 shares of Zotye Automobile, representing 9.05% of the total share capital and previously held by its controlling shareholder, Jiangsu Deep Commercial Holdings Group Co., Ltd., and Shenzhen National Digital Information Technology Co., Ltd., were transferred to Jilin Jiutai Rural Commercial Bank Changchun Branch. This transfer occurred as a result of court rulings to settle financial loan disputes, concluding with the shares being assigned on September 2, 2025.

Prior to these events, an "acting in concert agreement" expired on December 5, 2024, leading to a reduction in the collective stake of Jiangsu Deep Commercial Holdings Group and its associates. This, combined with the judicial auction of shares, caused the collective holdings of the controlling shareholder and its aligned parties to decrease from 24.35% (1,227,671,288 shares) to 13.88% (699,930,901 shares).