Zotye Auto stock rose 205% in 37 days, but the company lost 6 billion

Continental Zotye automobile stock soared this year, but the company lost more than 6 billion.

March 10, the mainland *ST Zotye again a word up, so far, in the 37 trading days since January 12 this year, the stock has reached 27 times the cumulative number of stops, during the cumulative increase of 205.26%, but, Zotye Auto has lost at least 6 billion yuan, the company’s stock movements have raised concerns.

Comprehensive mainland media news, March 10 morning opening, a number of auto stocks fell, but Zotye Auto opened high. Until the closing bell, Zotye closed at 3.48 yuan (RMB, same below) per share.

News from the Daily Economic News shows that in 37 transactions from January 12 to March 10, *ST Zotye had 27 stops, which is currently the stock with the most stops in the year for A-shares. Its share price rose more than 2 times from the lowest point of 1.14 yuan to 10 days, the market value also soared to 7 billion yuan. The cumulative increase in the year has reached 157.78%, ranking first in the two cities, becoming far ahead of other stocks in the A-share market “stop king” (in addition to the new shares listed this year).

But support *ST Zotye stock rise is not the company’s performance. According to the performance forecast released by Zotye Auto on January 29, its 2020 net profit attributable to shareholders of listed companies is expected to lose 6 billion to 9 billion yuan, withholding non-net profit is expected to lose 5.96 billion to 8.96 billion yuan.

The company explained in the announcement that due to the shortage of funds in 2020, *ST Zotye’s main automotive businesses are in a state of suspension or semi-suspension, and it intends to make provisions for asset impairment and bad debts totaling about 3.5 billion to 6.5 billion yuan.

In the case of the company’s huge losses, the stock has surged abnormally, raising concerns. 2021 February to date, the Shenzhen Stock Exchange has twice issued a letter of concern to *ST Zotye, asking *ST Zotye to explain the company’s abnormal stock fluctuations, financial situation, operating income and the controlling shareholder Tie Niu Group to occupy 310 million non-operating funds and other conditions. According to the current information, Tie Niu Group still has not returned the 310 million non-operating funds occupied, has entered bankruptcy proceedings, insolvent.

In the evening of March 10, *ST Zotye issued an announcement saying that its trading has been suspended since March 11 to verify the stock movement.

ST Zotye’s 2019 financial report was issued an “Unable to Express an Opinion” by the auditor, and the company’s shares have been subject to “delisting risk warning” since June 2020, with the delisting risk warning symbol added before the shares The company’s shares have been placed on “delisting risk warning” since June 2020, with the delisting risk warning symbol “” added before the shares.

In addition to industry losses and production stagnation, Zotye has also experienced personnel changes.

On the evening of March 8, *ST Zotye released several announcements one after another, and the company’s chairman Jin Zhenyong, director Ying Jianren, and vice president Ma Deren submitted their resignations. Jin Zhenyong and Ying Jianren resigned and still have positions in the company’s subsidiaries, while Ma Deren no longer holds other positions in the company. The above three people do not hold any shares of the company.

The company’s vice president Deng Xiaoming resigned as early as March last year, and in November of that year, the chief financial officer Zhang Zhi resigned.

For the recent speculation on strange stocks similar to *ST Zongtai, a commentary published by the land media on the 9th, short term speculation on such stocks, on the surface, short-term continuous halt, the share price doubled, looking at people’s eyes, but once involved, with speculative funds gaming is like taking chestnuts from the fire. What’s more, the weirdness of these stocks is that the short-term stock price rise, and the company’s fundamentals have nothing to do with the fundamentals, or even major flaws, and the stock price is up and down, and ultimately to investors may be left with a chicken feather.

Zotye has been labeled as a copycat and imitator in mainland China, i.e. a copycat of Porsche, Audi, Cayenne and other car brands.

In 2003, Zotye was established, with shareholders including Family members who had been mainly engaged in auto parts for many years, parts manufacturers came together, and then bought the whole car production line, and Zotye started to build cars.

In 2014, the road of Zotye Automobile cottage came to a climax. Zotye’s ace product, the T600, imitated the Volkswagen Touareg, with sales reaching 110,500 units in 2015, and at the end of 2016, the “shiny” appearance of the Zotye SR9 was highly similar to that of the Porsche Macan; in 2016, Zotye’s cumulative sales reached 333,100 units, up 50% year-on-year.

The company has launched new energy models such as the Cloud 100 and T11, with subsidies approaching 60% of the selling price. 2015 Zotye new energy vehicle revenue was 2.19 billion yuan, with subsidies reaching 1.14 billion yuan.

Relying on subsidies, Zotye’s sales reached 330,000 units in 2016, but the good times did not last long, as the new energy subsidy policy receded significantly, Zotye’s new energy vehicle market position continued to decline. 2020 due to a shortage of funds led to the suspension of production, turnover by virtue of the sale of auto parts to obtain.