Zotye Auto Narrows Losses in 2025 but Resumption of Operations Remains Uncertain

[Company Update] Zotye Auto is expected to report a net loss of RMB 281 million to RMB 417 million in 2025, representing a year-over-year reduction of 58.32% to 71.91%.

Core Developments: Loss Reduction Driven by Cost Cuts, Not Operational Recovery

Zotye Auto’s vehicle manufacturing operations have remained suspended since 2022 due to debt issues and disputes with suppliers. In the first three quarters of 2025, the company generated only RMB 419 million in revenue, with a net loss attributable to shareholders of RMB 223 million. The narrowed losses were primarily achieved through asset sales and expense reductions, not through any recovery in core business operations.

Strategic Underpinnings: Legacy Burdens and Missed Transition Opportunities Deepen Crisis

The company previously relied heavily on a copycat strategy, neglecting investment in core technology development. It completely halted operations during the 2018–2022 new energy vehicle boom, resulting in zero technological reserves. Although Zotye has repaid debts of RMB 2.12 billion to Bank of China Yongkang Branch and RMB 1.73 billion to China Construction Bank Yongkang Branch, and has initiated recruitment for 49 key new energy positions, it still faces significant challenges in rebuilding brand credibility and restarting production capacity.