Zotye Automobile asset disposal shares frozen by court order

Zotye Automobile Co., Ltd. announced on September 23, 2025, that its special account for the disposal of assets (the "Disposal Account") has had its shares judicially frozen. This follows court orders from the Yongkang City People's Court in Zhejiang Province, issued in response to applications from China Construction Bank Corporation, Yongkang Branch, and Bank of China Limited, Yongkang Branch. The Disposal Account holds 334,723,549 shares of Zotye Automobile.

The freeze also includes bank deposits, with China Construction Bank requesting the freezing of 4,214,162.14 yuan and Bank of China requesting 50,000 yuan. The total value of assets sought for preservation by China Construction Bank is 164,214,162.14 yuan, and by Bank of China is 218,341,420.18 yuan. The company clarified that some of these shares are intended for distribution to creditors as per the "Zotye Automobile Co., Ltd. Restructuring Plan" and do not belong to the company itself.

This judicial freeze prevents Zotye from publicly disposing of the remaining unrestricted tradable shares in the Disposal Account, potentially impacting its operations. However, the company believes there is no immediate risk of forced liquidation or change in controlling shareholder, as the frozen accounts are not essential for its main operations but are primarily for settling restructuring debts.