Zotye Automobile’s asset disposal shares judicially frozen

Zotye Automobile announced that all 334,723,549 shares in its special account for the disposal of assets of the bankrupt enterprise have been judicially frozen by the Yongkang City People's Court. These shares, representing 6.64% of the company's total share capital, were initially unfrozen on May 29, 2025, but subsequently re-frozen. This new judicial freeze prevents the company from publicly disposing of the remaining unrestricted tradable shares in the account, which is expected to significantly affect its operations.

The frozen shares were part of Zotye Automobile’s restructuring plan, intended to be used for repaying creditors and supplementing operational working capital from any remaining proceeds. While the company notes there are no non-operating fund occupations or illegal guarantees, the judicial freeze creates uncertainty regarding the company's ability to proceed with planned asset disposals as per the restructuring.

Separately, the company's controlling shareholder, Jiangsu Deep Commercial Holding Group Co., Ltd., and its concerted parties hold 699,930,901 shares (13.88% of total share capital), all of which are judicially frozen. An earlier auction of 6,736,758 shares, also held by Jiangsu Deep Commercial, was successfully concluded, with ownership transferred to the buyer, though the registration process is still pending.