ZOTYE(SZ:000980) Xin Lang Zheng Quan·2025-06-26 09:57Core Viewpoint - The resignation of ZHONGTAI Automobile's vice president, Fan Chengwei, highlights the company's struggles amid a critical transformation phase in the Chinese automotive industry, raising questions about the ability of the new acting president, Xie Lihong, to lead the company out of its current difficulties [1][3]. Company Overview - ZHONGTAI Automobile announced the resignation of vice president Fan Chengwei after only seven months in office, with Xie Lihong stepping in to take on multiple roles including acting president and financial director [1][2]. - The company is facing significant financial challenges, with a reported revenue of 558 million yuan in 2024, a year-on-year decline of 23.96%, and a net loss of 1 billion yuan [3]. - As of June 26, the company's stock price was 2.08 yuan per share, with a total market capitalization of 10.488 billion yuan [4]. Management Changes - Xie Lihong, with a background in finance and experience in various industries, is now tasked with navigating the company through its financial crisis [2][5]. - The company has seen a reduction in employee numbers from 2,304 at the end of 2023 to 1,707, alongside multiple executive departures, reflecting the broader challenges faced by traditional automakers in China [6]. Industry Context - The automotive industry is experiencing increased concentration, making it more difficult for ZHONGTAI to reverse its fortunes [5]. - The company previously achieved peak sales of 330,000 vehicles, but its strategy has faltered in the face of the 2018 electric vehicle wave, necessitating a focus on product strength for recovery [5][6]. - The ongoing transformation in the automotive sector is marked by a collective anxiety and hope as companies adapt to the trends of electrification and smart technology [6].