Zotye Automobile settles disputes with major creditors

Zotye Automobile Co., Ltd. held its ninth board of directors' sixth extraordinary meeting for 2025 on December 24, 2025, to address ongoing financial disputes. The board approved settlements with China Construction Bank Yongkang Branch and Bank of China Yongkang Branch, and decided to submit a settlement with Zheshang Bank Jinhua Branch to a shareholder meeting.

The settlements with China Construction Bank and Bank of China involve returning principal, interest, and legal fees totaling yuan 182,833,512.50 and yuan 222,192,262.93, respectively, with initial payments of yuan 10,000,000 due by December 31, 2025, and the remainder by January 31, 2026. These agreements follow court-led mediation, which has also lifted asset freezes on Zotye Automobile's bank deposits and 334,723,549 shares.

The proposed settlement with Zheshang Bank Jinhua Branch, which will be put to a shareholder vote due to a conflict of interest, involves returning a principal of yuan 338,671,599.11 plus interest at 3.65% per annum, and yuan 5,000 in preservation costs. Payments are scheduled in installments from November 2026 to November 2028. These resolutions aim to mitigate severe litigation risks and facilitate the company's operational recovery.