Zotye Automobile's asset disposal shares frozen by court order

Zotye Automobile Co. has disclosed 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 Luohu District People's Court of Shenzhen. The company, as of the announcement date, had not yet received the specific ruling document from the court. These frozen shares represent 100% of the company's holdings in the disposal account and 6.64% of the company's total share capital.

The initial freezing order by the Yongkang City People's Court began on May 29, 2025, and is set to expire on May 28, 2028. This was followed by a first round of judicial re-freezing by the Yongkang City People's Court on September 16, 2025, with a 36-month term. The latest re-freezing, announced on December 5, 2025, was initiated by the Luohu District People's Court of Shenzhen on December 2, 2025, also for a 36-month period.

Zotye Automobile plans to actively communicate with creditors and the court to resolve or partially resolve the judicial re-freezing. The company warns that if the freeze cannot be lifted, it may be unable to publicly dispose of the remaining unrestricted shares in the account, potentially affecting its ability to secure operating funds for the resumption of its vehicle manufacturing business and increase net assets. The company states there is no immediate risk of forced liquidation or transfer, and it does not anticipate a change in its largest shareholder.