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Zhongtai Motor Co., Ltd. further expanded its third quarter loss by 524% compared with the same period last year.
Oct 30,2019 13:14CST
translation
Source:SMM
On October 28, Zhongtai Automobile officially released its third quarterly report, in which its operating income was 360 million yuan, down 88.41 percent from the same period last year, and the net profit attributable to the shareholders of listed companies was 470 million yuan, down 521.5 percent from the same period last year. The cumulative revenue in the first three quarters was 5.401 billion yuan, down 59.59 percent from the same period last year.
The content below was translated by Tencent automatically for reference.

SMM10, Oct. 30: on October 28, Zhongtai Motors officially released its third quarter report, in which operating income was 360 million yuan, down 88.41% from the same period last year, and the net profit attributed to shareholders of listed companies was 470 million yuan, down 521.5% from the same period last year. In the first three quarters, cumulative revenue was 5.401 billion yuan, down 59.59% from the same period last year. The net profit attributable to shareholders of listed companies was 760 million yuan, down 283.02 percent from the same period last year.

Zhongtai said the decline in revenue and profits was mainly due to losses caused by falling sales affected by the industry. Zhongtai sold 10200 vehicles in September, down 32.7% from a year earlier, and 134600 from January to September, down 32.4% from a year earlier, according to the Association.

As a matter of fact, in the first half of this year, Zhongtai lost a total of $290 million, while in the third quarter, in just three months, it exceeded more than 60% of the loss in the first six months, showing a significant expansion trend. In addition, as Zhongtai failed to announce its half-year results in time before July 15, but lagged behind until August 20, Zhongtai Motors received a regulatory letter from the Shenzhen Stock Exchange a few days ago.

Since the Chinese car market entered the downward track, Zhongtai Automobile's living environment has become more and more precipitous. On October 9, a screenshot of a suspected internal email from Ping an Bank showed that four car companies, including Zhongtai Motor, would enter bankruptcy proceedings by the end of the year. Zhong Tai immediately issued a statement saying that the so-called bankruptcy rumors were false information, that everything was normal in the production and operation of the company, that there was no insolvency, and that it had reported the case to the public security department.

However, on October 15, Zhongtai Motors issued a statement that 6.2% of the shareholder Tienniu Group's total stake in Zhongtai Motors had been judicially frozen. Tienniu Group holds a total of 786 million shares in Zhongtai Automobile, accounting for 38.78% of the total share capital of the company. The cumulative number of shares frozen by the judiciary is about 48.7 million, accounting for 2.4% of the total share capital of Zhongtai Automobile, with a total value of about 160 million yuan.

At the same time, Zhongtai Motor has been caught up in nearly 40 lawsuits. Bic Power Battery announced on Oct. 14 that it had filed another lawsuit against Bic Power Battery on Sept. 2 because Zhongtai owed it 621 million yuan and asked to freeze more than 40 million assets.

In addition, on October 23, 61 Jun Ma car dealers from Guangdong, Sichuan, Zhejiang and other places came to Zhejiang Zhongtai Automobile sales Co., Ltd., on Jun Ma Automobile (Jun Ma Automobile is an independent operating car brand released by Zhongtai Group in 2017) to safeguard and negotiate rights and rebates.

Founded in 2003, 2017 backdoor listing of Zhongtai Automobile, has leapt into the top 10 Chinese car brand sales enterprises, become a hot new force of their own brands. Now it is sad to be in deep trouble.

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