Che 300: once sold more than 300,000 vehicles a year, now it has a loss of more than 20 billion and declared bankruptcy and reform

Recently, Zotye Automobile disclosed its 2020 financial report. During the reporting period, it is expected to achieve total operating income of 1.505 billion yuan, a year-on-year decrease of 49.61%; and an estimated net loss of 10.237 billion yuan.

In the face of huge losses, Zotye Automobile said that in 2020, due to the shortage of funds, the company’s automobile production bases are basically in a state of suspension or semi-stop production, and the company’s main product, automobile, has basically no sales revenue. At the same time, the company’s main business vehicle business is in a state of suspension or semi-stop production, resulting in a huge loss in the company’s overall performance in 2020.

However, compared with the loss of 11.190 billion yuan in 2019, Zotye Auto’s loss has decreased. Of course, Zotye Automobile said at that time that it could not guarantee the authenticity and accuracy of the financial data.

Looking back at the development history of Zotye Automobile in 2020, it is not an exaggeration to use the term “horrible” to describe it. In September 2020, the creditors of Zotye Automobile applied to the court for pre-reorganization because they were unable to pay off their due debts.

During the year, its subsidiaries including Zotye New Energy Automobile Co., Ltd., Hunan Jiangnan Automobile Manufacturing Co., Ltd., Hangzhou Jieneng Power Co., Ltd., Hangzhou Yiwei Automobile Industry Co., Ltd., Zhejiang Zotye Automobile Sales Co., Ltd., and Zhejiang Zotye Automobile Manufacturing Co., Ltd. were bankrupted and reorganized. / Bankruptcy liquidation, even the controlling shareholder of Zotye Automobile Tieniu Group was declared bankrupt by the court.

In addition, because the production base is in a state of suspension or semi-stop production, Zotye Automobile’s Wuguo Six vehicles are available for sale, and its Junma, Hanteng, and Hanlong brands continue to thunder, and dealers and employees have joined the team to ask for salaries.

From an independent auto company with an annual sales volume of more than 300,000 vehicles to today’s negative net assets, the development of Zotye Auto is just a microcosm of the survival of the fittest in the Chinese auto market.

As a “taker”, Zotye Auto is a car company that started by imitating. Its products often attract consumers’ attention in a short period of time. For example, Zotye T600 imitates Volkswagen Touareg, Damai X7 imitates Volkswagen Touareg, and Z700 imitates. Audi A6L. In particular, Zotye SR9 directly imitated the appearance of Porsche Macan, making “Porstech” popular all over the country.

However, these models have a characteristic. When they debuted on the market, their sales volume increased sharply due to their super-high looks. However, after a period of time on the market, the sales of these models dropped sharply.

Although imitation can be sought after by consumers in a short period of time, it is obviously unable to keep up with the long-term development of the times in terms of technology and product capabilities.

According to industry insiders, there are three main reasons for Zotye’s current status: first, poor management and blindly investing and expanding production without considering the actual situation; second, lack of core technology, no product competitiveness, and continuous product quality; It is the decline in subsidies for new energy vehicles, and Zotye New Energy has not adapted to the development of the times.

It is worth mentioning that although Zotye Auto lost a substantial net profit, its share price could not stop its rise. From 1.14 yuan per share on January 11 to 4.08 yuan per share on April 16, an increase of 240%. For this reason, Zotye Automobile has been suspended for verification many times, but still cannot stop the daily limit. The industry speculates that the reason why the stock price of Zotye Auto continues to rise at the limit has a lot to do with the reorganization. As for who is the white horse guardian of Zotye Auto, it is still unknown.

On April 6, Zotye Automobile issued an announcement denying negotiations and cooperation with Tesla, Xiaomi, Weilai, Baoneng and others. After that, on April 7-9, the share price of Zotye Automobile fell to the limit for three consecutive days. When it was thought that Zotye Automobile stopped rising, Zotye Automobile gained a daily limit for four consecutive days.

Although the share price of Zotye Automobile continues to hit new highs, Zotye Automobile is currently in a state of restructuring, with a loss of more than 20 billion yuan in two years, and the road to reorganization of Zotye Automobile is far away. The current auto market has overcapacity, survival of the fittest and intensified competition in inventory. Even if Zotye Auto is successfully reorganized, its later development potential will not be great, and the chance of turning over is very slim.

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