Zotye Auto Reports Profitability Reversal in H1 — But Core EV Business Still Losing Money

[Financial Performance] Zotye Auto expects net profit of RMB 78 million to RMB 105 million for the first half of 2026, marking a year-over-year turnaround from losses.

Core Development: Profit Driven by Non-Recurring Gains

Zotye Auto did not achieve profitability through vehicle sales. Instead, it received RMB 200 million in compensation from dissolving underperforming subsidiaries, combined with RMB 30 million from litigation settlements, contributing approximately RMB 230 million in non-recurring gains.

Key Metrics: Core Business Remains Deeply Unprofitable

Excluding non-recurring items, the company reported a net loss of RMB 110 million to RMB 150 million, widening compared to the RMB 108 million loss in the same period last year. Its A0-class platform models have not yet entered mass production, and its auto parts stamping operations have failed to generate meaningful scale-based profits.

Strategic Reality: Retrenchment Strategy Fails to Mask Operational Challenges

Despite achieving accounting profitability, Zotye has incurred losses for seven consecutive years (2019–2025), accumulating total losses exceeding RMB 25 billion. Its current profit model is unsustainable.