A few days ago, the reporter learned that Zotye Automobile Co., Ltd. issued an announcement on December 2 that a wholly-owned secondary subsidiary, Zotye New Energy Automobile Co., Ltd., was ruled to accept bankruptcy liquidation.

    The announcement stated: Zotye Automobile Co., Ltd. (hereinafter referred to as the "Company") recently received the "Civil Ruling" ([2020] Zhejiang 0784 Break 20) ​​issued by the People's Court of Yongkang City, Zhejiang Province (hereinafter referred to as the "Yongkang Court"). No.), it was learned that the company's wholly-owned secondary subsidiary Zhongtai New Energy Automobile Co., Ltd. (hereinafter referred to as "Zhongtai New Energy") was filed for bankruptcy and liquidation by creditors on the grounds that it was unable to repay the due debts and the assets were insufficient to pay off all debts.

　　 1. Bankruptcy and liquidation of wholly-owned subsidiaries

    The company recently received the "Civil Ruling" issued by the Yongkang Court ([2020] Zhejiang 0784 Break No. 20). The applicants Hangzhou Tiecheng Information Technology Co., Ltd. and Kumho (China) Tire Sales Co., Ltd. It applied for bankruptcy liquidation of Zotye New Energy on the grounds that the assets were insufficient to pay off all the debts. According to the relevant provisions of the Enterprise Bankruptcy Law of the People's Republic of China, the ruling is as follows:

    1. Filing a case to accept the bankruptcy liquidation applications of the applicant Hangzhou Tiecheng Information Technology Co., Ltd. and Kumho (China) Tire Sales Co., Ltd. against the respondent Zhongtai New Energy Automobile Co., Ltd.

    2. Designate Zhejiang Jingheng Law Firm as the bankruptcy administrator.

　　 2. The basic situation of Zotye New Energy

Name: Zotye New Energy Automobile Co., Ltd.

Type: limited liability company (wholly-owned legal person that is not invested or controlled by a natural person)

Address: Building 5, No. 509, Wenjin North Road, Baiyang Street, Hangzhou Economic and Technological Development Zone (see attached picture for details)

　　 3. The impact of bankruptcy and liquidation on the company

    Zotye New Energy is a wholly-owned secondary subsidiary of the company. After entering the bankruptcy liquidation process, if Zotye New Energy subsequently changes to the reorganization process due to legal circumstances and the company acts as a reorganization investor and facilitates the success of the reorganization of Zotye New Energy, Zotye New Energy Energy will become an important source of profit for the company and will play an important role in the company's continued operation and development. If Zotye New Energy does not switch to the reorganization process and is finally declared bankrupt by the court or, although it is converted to the reorganization process, but other parties other than the company act as reorganization investors, the company will lose control of Zotye New Energy, and Zotye New Energy It will no longer be included in the scope of the company's consolidated statements.