Zotye Automobile Reaches RMB 405 Million Debt Settlement Agreement with Two Banks

[Debt Restructuring] Zotye Automobile has reached a settlement agreement totaling RMB 405 million with the Yongkang Branch of Bank of China and the Yongkang Branch of China Construction Bank regarding disputes over financial loan contracts.

⚡ Key Development: Avoiding Asset Seizure and Advancing Resumption of Production

On December 24, Zotye Automobile announced it had settled disputes with the Yongkang Branch of Bank of China and the Yongkang Branch of China Construction Bank concerning financial loan agreements, with a total settlement amount of RMB 405 million. Under the agreement, the company is required to pay RMB 100 million in principal to each bank by December 31, 2025, and fully settle all remaining amounts by January 31, 2026.

🔍 Strategic Rationale: Unfreezing Assets to Facilitate Restructuring

Previously, due to debt disputes, the court had frozen 335 million shares of stock and RMB 4.2642 million in deposits held in the company’s bankruptcy asset disposal account. Zotye applied for unfreezing, citing sufficient collateral value and the necessity of resuming production and operations. The court issued a ruling on December 5 to lift the freeze. This settlement effectively avoids the risk of forced execution and auction of assets, creating favorable conditions for subsequent share disposal and operational recovery.