Zotye Automobile restructures debt, sells idle assets for 30.6m yuan

Zotye Automobile announced a debt restructuring involving Shenzhen Lixun Industrial Co., Ltd. for 30.60 million yuan. This deal includes the sale of idle production lines and equipment from its wholly-owned subsidiary, Zhejiang Shenkang Car Body Automotive Mold Co., Ltd., to Shenzhen Lixun Industrial Co., Ltd. for the same amount, offsetting Zotye's debt to Lixun Industrial.

The total value of the debt restructuring and asset sale, 30.60 million yuan, represents 13.03% of Zotye Automobile's net assets as of its latest audited period. The company further disclosed that its cumulative asset sales for 2025, including this transaction, now total 52.43 million yuan, accounting for 22.33% of its latest audited net assets.

This transaction, approved by the board on September 30, 2025, is not a related-party transaction and does not constitute a major asset reorganization. It aims to enhance asset efficiency and resolve debt issues, with no significant impact on the company's current or future financial performance.