Core Viewpoint - Zotye Auto, once a popular car brand in China, is now facing severe survival challenges, including a significant loss of control by its major shareholder and continuous financial losses over the years [1][2][3]. Financial Performance - Zotye Auto has reported cumulative losses of 250.93 billion yuan over six years, with annual losses of 10 billion, 9.37 billion, 9.20 billion, 7.06 billion, 103.4 billion, and 111.9 billion yuan from 2019 to 2024 [1][5]. - In the first half of 2025, the company recorded a net loss of 1.48 billion yuan [9]. Shareholder Changes - The company's major shareholder, Jiangsu Deep Commerce Holding Group, lost all its shares due to a judicial auction, resulting in Zotye Auto entering a "no controlling shareholder" status [1][3][4]. - The shares, originally held by Jiangsu Deep Commerce, were auctioned off but went unsold, leading to their transfer to a creditor, which indicates a lack of market confidence in Zotye's future [3][4]. Operational Challenges - Despite having production capabilities of 300,000 vehicles per year and some remaining overseas business, Zotye Auto is struggling with financing difficulties and the risk of bankruptcy [2][11]. - The company has not produced any vehicles in 2024, with only 14 units sold, indicating a critical operational decline [8]. Historical Context - Founded in 2003, Zotye Auto initially gained popularity by offering low-cost vehicles that imitated luxury car designs, achieving peak sales of 333,100 units in 2016 [6][7]. - However, quality issues and a decline in sales led to significant financial troubles, with sales dropping to 116,400 units in 2019 and subsequent bankruptcy proceedings for several subsidiaries [7][8]. Future Prospects - Zotye Auto is exploring asset revitalization and restructuring options to secure funding for resuming operations, but the current credit system remains unstable [10]. - The company is also pursuing international orders, including a recent shipment of 14 vehicles to Algeria and plans for further market development in countries like Iran and Ethiopia [12][13].

Core Viewpoint - The financial report of Zotye Auto for 2024 reveals a dramatic decline in performance, with zero vehicle production, only 14 units sold, and a net loss of 1 billion yuan, highlighting the company's significant struggles in the automotive market [2][4][12]. Financial Performance - Zotye Auto reported a total sales revenue of 558 million yuan in 2024, a year-on-year decrease of 23.96% [2]. - The net loss attributable to shareholders was 1 billion yuan, an increase in loss of 6.82% compared to the previous year [2]. - Over the past three years, Zotye Auto has accumulated losses nearing 3 billion yuan [2]. Production and Sales Data - In 2024, Zotye produced zero new vehicles, a 100% decrease from 1,108 units in 2023 [3]. - The sales volume of vehicles plummeted by 98.74%, from 1,112 units in 2023 to just 14 units in 2024 [3]. - The inventory of vehicles decreased slightly by 4% to 336 units [3]. Historical Context - Zotye Auto was founded in 2003 and initially gained popularity through a strategy of imitation and low pricing, achieving significant sales in the SUV market during its peak years [4][6]. - The company faced a turning point in 2018 due to quality issues, leading to a drastic drop in sales and a net loss of 11.1 billion yuan in 2019 [6][7]. Market Position and Competition - The rise of domestic new energy vehicles has intensified competition, leaving Zotye's older models, such as the T300, struggling to gain traction in the market [9][11]. - Zotye's attempts to re-enter the market with new models have been met with limited success, as evidenced by the T300's sales of only 111 units in 2023 and further decline to 14 units in 2024 [8][9]. Management and Strategic Challenges - The company has seen significant changes in its management team, with multiple high-level executives resigning without reversing the company's downward trend [11]. - Research and development investment has drastically decreased, with only 5.7 million yuan allocated in 2024, down 86.97% from the previous year [11]. Conclusion - Zotye Auto's journey from a once-prominent player in the automotive industry to its current state of financial distress serves as a cautionary tale for companies lacking core technology and user-centric strategies in a rapidly evolving market [12][14].