SMM: Zhongtai Automobile Co., Ltd. announced on December 2 that it recently received a "Civil order" ([2020] Zhejiang 0784 Breaking No. 20) issued by the people's Court of Yongkang City, Zhejiang Province, and learned that Zhongtai New Energy Automobile Co., Ltd. (hereinafter referred to as "Zhongtai New Energy"), a wholly-owned secondary subsidiary of the company, was filed for bankruptcy liquidation on the grounds that it could not pay off its due claims and its assets were insufficient to pay off all its debts.
Zhongtai New Energy was founded in 2011 with a registered capital of 100 million yuan and the legal representative Jin Zheyong. Business scope: manufacturing: new energy vehicle accessories (battery group, vehicle charger, DC converter, motor controller, battery management system) (after reporting to the environmental protection department) technology development: new energy vehicles and accessories; services: new energy vehicle leasing, industrial investment; car sales; Wholesale, retail: auto parts.
Zhongtai Motor owns 100% of Yongkang Zhongtai Automobile Co., Ltd. (hereinafter referred to as "Yongkang Zhongtai"), and Yongkang Zhongtai holds 100% of Zhongtai New Energy, so Zhongtai indirectly holds 100% of Zhongtai New Energy. Zhongtai New Energy is a wholly-owned second-class subsidiary of Zhongtai Automobile. The actual control of Zhongtai New Energy is Ying Jianren and his wife.
In April this year, Zhongtai New Energy was protected by employees for arrears of wages, and a large number of employees participated in defending their rights and asking for wages in Hangzhou. Subsequently, Zhongtai responded that the 2019 salary would be settled by the end of June, and the 2020 salary would be reissued after the company's normal operation.
In addition to employees' wages, Zhongtai New Energy is also in arrears with suppliers. For example, Bic Power Battery Company sued Zhongtai New Energy subsidiary Energy Saving Power to the court, demanding that the other party pay the goods and pay a total of 616 million yuan in liquidated damages.
According to the announcement, after entering the bankruptcy liquidation procedure, if Zhongtai New Energy changes to the reorganization procedure due to legal circumstances and the company acts as a restructuring investor and promotes the success of Zhongtai New Energy restructuring, Zhongtai New Energy will become an important source of profits for the company and will play an important role in the continued operation and development of the company. If Zhongtai New Energy does not turn into the reorganization procedure and is eventually declared bankrupt by the court or if a party other than the company acts as the reorganization investor, the company will lose control of Zhongtai New Energy. Zhongtai New Energy will no longer be included in the company's consolidated statement.
