For zotye in deep trouble, rebranding is not easy.

Zotye Motor revealed its semi-annual forecast on Friday, predicting a loss of 750-1.05 billion yuan in the first half of 2020. Zotye lost 290 million yuan a year earlier. This is mainly due to the shortage of funds in the first half of the year, combined with the impact of COVID-19 epidemic and the low prosperity of the automobile industry as a whole. Zotye Automobile's subordinate bases are basically in a state of suspension or semi-suspension, and the production and sales of automobiles have dropped significantly, and the sales revenue has dropped significantly.

A day earlier, Zotye said in response to a regulatory inquiry from the Zhejiang Securities Regulatory Bureau that it produced 16,215 cars in 2019, sold 21,224 and had 843 vehicles in stock by the end of 2019. From January to June 2020, 574 vehicles will be produced and 1,417 vehicles will be sold.

Since last year, Zotye Auto has been Mired in huge losses, unpaid wages, factory shutdown and other public opinion storm, due to the emergency of funds, Zotye new products listed progress also stagnated, leading to a sharp decline in sales. Zotye years of business under the product problems and market reputation, but also the enterprise is difficult to continue the important reason.

Zotye, which has been teetering on the brink of death several times, has long relied on its parent company, Tieniu, for blood and has repeatedly been Mired in debt crises. In 2019, Zotye Was found to have defaulted on employee salaries and social security expenses, and its Junma subsidiary went bankrupt and went to court for defaulting on payments to suppliers. Affected by the epidemic this year, all employees of Zhongtai Hunan Base have extended their holidays until June 30, 2021 to save money and encourage employees to leave voluntarily.

To solve the problem of liquidity, since the second half of 2019, under the organization of local government, zhongtai auto has with a number of financial institutions in the negotiations, and with the intention to partner formed a preliminary scheme at the end of 2019, 20-2.5 billion yuan borrowing from financial institutions by the company to resume production, because after the two sides failed to agree to risk slow-release measures combined with the sudden outbreak earlier this year as the failure to advance, the effect of the scheme is not as expected plan ahead.

At the same time, Zotye also developed the relevant accounts receivable recovery plan. Including the sale of non-main business assets, to protect the main business vehicle operation. To ensure the production and operation of the vehicle business, Zotye Automobile plans to sell non-vehicle business assets and actively seek suitable partners to revitalize the vehicle assets and improve the efficiency of vehicle business assets.

As a matter of fact, Zotye Still has an undisbursed fund. At present, Zotye's accounts receivable for new energy subsidies are 2.558 billion yuan, and the ministry of Industry and Information Technology has published 1.059 billion yuan, which is expected to be allocated soon. Regarding the remaining new energy subsidies, Zotye automobile said that it will actively organize to continue to prepare the next batch of new energy subsidies declaration work.

Although its own crisis, but zotye is still struggling. It is reported that part of the original A class of Zotye auto to the international market and travel sector, the newly developed A0 class to occupy the fourth and fifth tier cities and towns market; In the field of new energy vehicles, with urban commuting and urban operation as the key market, the main market of low-line urban commuter cars is launched. A0-class models are targeted at the private market and the operation market of third-tier and fourth-tier cities. A-class models are targeted at the intercity travel, rental and online car-hailing market.

In terms of products, the first stage is to produce and sell the core new model of "Zotye TS5", which is the core model for the resumption of production. In the second stage, several mature models were reproduced and sold, including "Zotye T600" export model, "Zotye T700" medium and large SUV model, "Zotye E200" pure electric model, and "Zotye T300" compact SUV model. The third stage, launch the "Zotye TS7" core new model; At the same time, the new annual model of A00 core pure electric vehicle E200 is launched, which mainly focuses on the urban and rural family mobility market. At the same time, the production of various models to increase the market.

But Zotye has been in a vicious circle, insufficient funds lead to insufficient research and development investment, insufficient research and development investment in turn on the product. For zotye, which has lost credibility with dealers, suppliers, employees and consumers, it will be hard to rebuild.