Zotye Automobile halts subsidiary asset disposal, debt restructuring

Zotye Automobile Co., Ltd. announced on October 12, 2025, that its board of directors approved the cessation of the previously planned disposal of certain idle fixed assets of a subsidiary and associated debt restructuring. This decision was made based on the company's operational and strategic development requirements.

The company had initially approved the disposal on September 30, 2025. This original plan involved selling idle production lines and equipment of its wholly-owned subsidiary, Zhejiang Shenkang Car Body Automobile Mold Co., Ltd., to creditor Shenzhen Lixun Industrial Co., Ltd. The agreement included Lixun Industrial acquiring the assets for 30.6 million yuan, which would then be used to offset Zotye Automobile's debts to Lixun Industrial.

Zotye Automobile has confirmed that stopping these transactions will not significantly impact the company's current or future financial position and operating results.