After the reorganization, Zotye Automobile is rekindling. Recently, Zotye Automobile has brought good news, financial reports show that in 2021 to achieve operating income of 825 million yuan, of which profits increased by 93.18% compared with the same period last year. In addition, the net assets attributable to the shareholders of listed companies by the end of 2021 also reached 3.442 billion yuan, which is a big change from -3.964 billion yuan at the end of 2020. Combined with the earlier acquisition of Shanghai Junqu Automobile Technology Co., Ltd. by *ST Zotye, it is not difficult to see that Zotye Automobile is ready to launch a counterattack in the automobile market.
Backed by big money, successfully reduced losses
As a Zotye Automobile that once helped most people realize the dream of "luxury car", it has also attracted much attention from the outside world for many years. In that year, Zotye Automobile reached the peak of sales with the best sales of T600 and SR9, and the cumulative sales volume in 2016 reached 333,100 units, an increase of 50% year-on-year, which is the best sales volume of Zotye Automobile since its inception.
Unfortunately, Zotye Automobile's car-making method is mainly imitation, lack of core technology, and the problem of new model failure is also frequently detonated, and finally becomes the abandoned child of the times, from 2017 sales declined, sales fell to 154,800 vehicles in 2018, and sales in 2019 were only 116,600 vehicles. By 2020, Zotye Automobile was seriously insolvent and unable to continue its operations, and had to carry out bankruptcy liquidation, and Jiangsu Shenzhen Commercial Holding Group Co., Ltd. became the restructuring investor of Zotye Automobile.
That is to say, although in recent years, Zotye Automobile has no new cars baked and embarked on the road of bankruptcy, but has not officially withdrawn from the automobile market, backed by the big gold lord Jiangsu Shenzhen Business, and there is a trend of rejuvenation, so with the opening scene of this article, the profit of Zotye Automobile ushered in positive growth.
*ST Zotye released its annual financial report showing that in 2021, it achieved operating income of 825 million yuan, down 38.34% year-on-year; net loss attributable to shareholders of listed companies was 706 million yuan, an increase of 93.18% year-on-year; and net loss attributable to shareholders of listed companies after deducting non-recurring gains and losses was 2.109 billion yuan, an increase of 79.32% year-on-year. In addition, as of the end of 2021, the net assets attributable to the shareholders of listed companies were 3.442 billion yuan, compared with -3.964 billion yuan at the end of 2020.
From this financial report, it is not difficult to see that Zotye Automobile is still in a serious state of loss, but compared with the loss of more than 10 billion yuan in 2020, Zotye Automobile has achieved a substantial loss reduction. At the same time, Zotye Automobile is also planning to enter the auto market to fight back against other car companies.
Zhongtai will be resurrected with full blood
Jiangsu Shenzhen Business made it clear that in the future, the brand of Zotye Automobile will still exist, not only will produce cars, but also enter the field of new energy vehicles, and increase investment in new technologies and develop new products.
Earlier, Zotye Automobile also released a detailed plan. In the short term, Zotye Automobile will make strategic adjustments to brands such as Zotye, Junmai and Damai, and optimize the product sequence and cost structure through restructuring. In the long run, Zotye Automobile will also build a brand matrix through acquisitions and joint ventures, lay out the mid-to-high-end new energy vehicle market, and even promote micro-electric vehicles to go to the countryside, as well as extend its business tentacles to the field of online ride-hailing.
To put it simply, in the future, Zotye Automobile will make all-round efforts in all areas of the automotive market to obtain more market share. This confidence is related to the strong strength behind Jiangsu Shenzhen Business, including strong capital, good production conditions, and a huge sales network.
Jiangsu Shenzhen Business revealed that spending a lot of money to reorganize Zotye Automobile is mainly looking at its assets. As a listed company, Zotye Automobile not only has the dual production qualification of traditional fuel vehicles and new energy vehicles, but also has production bases in Zhejiang, Hunan, Hubei, Shandong, Chongqing and other places, so after Jiangsu Shenzhen Commercial becomes a shareholder of Zotye Automobile, it will be easier to build cars.
Not only that, sales channels are also the advantages of Jiangsu Shenzhen Business. It should be known that the legal representative of Jiangsu Shenzhen Commercial is Huang Jihong, and he is also the actual controller of the huge car dealership. It is reported that at present, there are more than 300 sales stores of huge automobiles, and they will become the sales stores of Zotye Automobile in the future.
The hard conditions for car manufacturing are sufficient, and the problem that Jiangsu Shenzhen Business needs to solve is technology, especially the technology of manufacturing new energy vehicles. The method given by Jiangsu Shenzhen Commercial is acquisition. At the beginning of this year, it was reported that Zotye Automobile acquired Shanghai Junqu Automobile Technology Co., Ltd., and the shareholders of Shanghai Junqu Automobile Technology Co., Ltd. may be a new company used by Huang Ximing, the founder of Bojun Automobile, to undertake bojun automobile assets.
That is to say, at present, Zotye Automobile has sufficient capacity to manufacture traditional fuel vehicles and new energy vehicles, and has gradually formed a system in research and development, production and sales. In the future, Zotye Automobile is also expected to return to the automotive market with a new look.
Obviously, compared with other car companies, especially the new forces, the advantages of Zotye Automobile are very obvious, and the car manufacturing funds, factories, and service channels have better performance. As long as the capital chain continues, the possibility of Zotye Automobile's successful turnaround in the future is very large.
However, the challenges faced by Zotye Automobile are also very obvious, the automobile market is surrounded by strong enemies, the traditional fuel vehicle market has Geely, great wall, Changan and other car companies, and the new energy vehicle field has Tesla, BYD, GAC new energy vehicles and other brands, they all have strong technical capabilities and system strength, anti-Yuetai Automobile and Bojun Automobile, the technology left behind in that year is already in the inferior position compared to other car companies, and there is no advantage in the current market. If Zotye Automobile does not continuously improve its technology and optimize its capabilities after returning to the market, it will be eliminated sooner or later.
Today's automobile market is a competitive environment for stock, but under the stock through competition can still create opportunities, provided that they have sufficient ability. After Jiangsu Shenzhen Commercial became a shareholder of Zotye Automobile, the system strength of Zotye Automobile has been greatly enhanced, and the capital, technology and channels have been raised to a higher level, and whether it can go out of a broad road in the fiercely competitive automobile market in the future depends on its own enterprising spirit.