Zotye Auto sued for 15.4 million yuan over contract dispute after stock rally
Zotye Auto (000980.SZ) disclosed on September 23 that Shenzhen Xinjin Trade Co., Ltd. has sued it over a contract dispute involving 15.4 million yuan in principal plus interest, stemming from a historical debt assignment from Jiangsu Shenshang Holdings Group. The case, filed at the Nanjing Jiangbei New Area People's Court, has not yet been heard. Zotye stated the amount is already recorded as other payables and does not expect a significant negative impact on performance. The company reported a net profit of 80.39 million yuan in H1 2026, reversing a year-ago loss, while revenue fell 32% to 190 million yuan.
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Zotye Auto, a former hot stock, sued for 15.4 million yuan over contract dispute
Zotye Auto (SZ000980), a Chinese automaker that saw its stock price surge in September with five consecutive daily trading limits, announced on September 23 that it has been sued by Shenzhen Xinjin Trade Co., Ltd. over a contract dispute involving 15.4 million yuan. The lawsuit stems from a historical debt transfer from Jiangsu Shenshang Holdings Group Co., Ltd., which the company says is disputed. Zotye stated the principal amount is already recorded as other payables on its books, so it will not create new liabilities, and it does not expect a significant negative impact on its current or future performance. The company is in the process of restructuring and resuming production after a period of difficulty. In the first half of 2026, it reported a net profit of 80.39 million yuan, a turnaround from a loss the previous year, though its core operating profit remained negative. Zotye is focusing on its auto parts and door businesses while developing new energy vehicles and expanding into overseas markets, including Southeast Asia, South Asia, Africa, and Latin America.
Read sourceZotye Auto Sued Over 15.4 Million Yuan Debt Dispute After Stock Rally
Zotye Auto, a Chinese automaker, has been sued by Shenzhen Xinjin Trading Co. over a contract dispute involving 15.4 million yuan in principal plus interest, stemming from a historical debt transfer from Jiangsu Shenshang Holdings Group. The case, filed in a Nanjing court, has not yet been heard. Zotye stated the amount is already recorded as a liability in its financial statements and does not expect a significant negative impact on current or future performance. The news follows a period of stock volatility: shares fell about 38% from the start of the year to September 23, then rebounded with five涨停板 (daily price limit ups), including a '5 days 4 boards' streak, with a maximum gain of over 30% during the rebound. The company's H1 2026 report shows a net profit of 80.39 million yuan, reversing a year-ago loss, though revenue fell 32% to 190 million yuan. Zotye is focused on resuming production, settling legacy debts (over 470 million yuan cleared), and expanding overseas, particularly in ASEAN, South Asia, Africa, and Latin America.
Read sourceZotye Auto Faces Lawsuit from Shenzhen Xinjin Trade Over Contract Dispute of 15.4 Million Yuan
Zotye Auto (000980) announced on September 23 that it has received a notice of response from the Nanjing Jiangbei New Area People's Court regarding a lawsuit filed by Shenzhen Xinjin Trade Co., Ltd. (Xinjin Trade). The lawsuit, stemming from a contract dispute, involves an amount of 15.4 million yuan. The case has not yet been heard, and Zotye Auto stated that a first-instance verdict is not expected to have a significant negative impact on the company's current or future performance.
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Zotye Auto Faces Lawsuit Over 15.4 Million Yuan Contract Dispute
Zotye Auto, a Chinese automaker, announced that it has been sued by Shenzhen Xinjin Trading Co., Ltd. over a contract dispute. The plaintiff is seeking repayment of a principal debt of 15.4 million yuan (approximately $2.1 million) plus accrued interest of 310,600 yuan during the period of fund occupation. Zotye Auto stated that it has received a notice of response to the lawsuit, but the case has not yet been heard or decided. The company is named as the defendant in the case. The announcement was made via a stock market live feed from StockStar, a Chinese financial news outlet.
Zotye Auto Sued Over Contract Dispute, 15.4 Million Yuan at Stake After Stock Rally
Zotye Auto (000980.SZ) disclosed on September 23 that it has been sued by Shenzhen Xinjin Trade Co., Ltd. over a contract dispute involving 15.4 million yuan in principal. The lawsuit stems from a historical debt assignment from Jiangsu Shenshang Holdings Group, which the company says is disputed. Zotye stated the amount is already recognized as other payables in its financial statements and will not create new liabilities, and that the case is not expected to materially impact current or future performance. The stock, which had fallen about 38% year-to-date, rebounded in September with five涨停板 (daily price limits) and a '5 days 4 boards' pattern, gaining over 30% in the rebound. In its 2026 first-half report, Zotye posted revenue of 190 million yuan (down 32.08% YoY) and net profit of 80.39 million yuan (up 154.36% YoY), turning profitable, though non-recurring items showed a loss. The company continues its复工复产 (production resumption) efforts, focusing on auto parts and door business, and is expanding overseas in ASEAN, South Asia, Africa, and Latin America.
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