Latest Announcement! Zotye Auto Subsidiary Resumes Work and Production

(Source: Car Connect New Ecology)

On March 18, Zotye Automobile Co., Ltd. (hereinafter referred to as “Zotye Auto”) announced the resumption of work and production at its wholly owned subsidiary, Zhejiang Shenkang Automotive Body Molds Co., Ltd. (hereinafter “Shenkang Body”). The announcement states that on March 18, Shenkang Body held a restart and commencement ceremony, officially resuming production and operations.

Zotye Auto is an automobile manufacturer focused on the research, development, manufacturing, and sales of complete vehicles. In its early years, it quickly gained market share by imitating the exterior designs of well-known brands and offering affordable prices. However, it also faced difficulties due to excessive imitation, technical shortcomings, and a lack of independent innovation. In 2020, Zotye Auto fell into a financial crisis, and its parent company, Tieniu Group, was declared bankrupt and liquidated by the court due to severe insolvency and inability to continue operations. Zotye Auto entered restructuring, but to this day, its main business has not shown signs of recovery. Shenkang Body is a subsidiary of Zotye Auto, specializing in automotive molds and body parts for over twenty years, with certain technical expertise and manufacturing experience. In this announcement, Zotye Auto stated that the resumption of work and production at Shenkang Body is still in the early stages. Its capacity ramp-up, supply chain coordination, and quality control still require time to stabilize, and the stability of its operations remains to be verified. The restart of production is beneficial for improving Zotye Auto’s parts supply system and laying a foundation for future new platform development and new vehicle production.

Since 2026, Zotye Auto has frequently signaled plans to resume work and production. In January, a recruitment poster from Zotye Auto’s Engineering Research Institute circulated online, recruiting engineers, designers, and others, leading many to believe that Zotye Auto might be restarting. In the same month, Zotye Auto also announced that it had fully repaid the remaining debts of 212,014,262.93 yuan to the Bank of China Yongkang Branch and 172,833,512.50 yuan to the China Construction Bank Yongkang Branch, totaling approximately 385 million yuan, fulfilling all debt repayment obligations to these two banks as previously agreed. However, when Zotye Auto’s complete vehicle production will fully resume remains uncertain. The company emphasized in its announcement that it still faces significant financial pressure and debt burdens. The full recovery of vehicle production depends on the maturity and effort of multiple conditions, and there is considerable uncertainty.

Currently, Zotye Auto has not released its 2025 annual performance report. Previously, the company’s forecast for 2025 indicated a net loss attributable to shareholders of the listed company between 281 million and 417 million yuan, compared to a loss of 1 billion yuan in the same period last year. The net profit after deducting non-recurring gains and losses was expected to be a loss of 286 million to 425 million yuan, compared to a loss of 1.47 billion yuan last year. Regarding the reasons for the performance loss, Zotye Auto stated that 2025 is a critical period for restarting its vehicle business and resolving legacy issues. The expected losses during the reporting period are mainly due to historical problems, which have caused the vehicle segment to be largely shut down. Additionally, to maintain the company’s basic framework and promote the restart and production plan, the company still needs to bear necessary management, financial, and other fixed expenses, leading to continued losses in its core business.

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