AutoBeta(AutoBeta.net)11/06 Report--

Zhongtai Automobile announced that it recently received a letter from its controlling shareholder, Tieniu Group Co., Ltd., that part of the shares held by Tieniu Group and its concerted actor Huangshan Golden Horse Group Co., Ltd. had been judicially frozen, with a total of 365 million shares frozen.

Specifically, nearly 250 million shares of Tieniu Group were judicially frozen by Beijing second Intermediate people's Court, Shenzhen Intermediate people's Court of Guangdong Province, and Shanghai Pudong New area people's Court due to contract disputes, accounting for 31.83% of the shares held. The 106 million shares held by the Golden Horse Group were also frozen by the Shenzhen Intermediate people's Court of Guangdong Province because of a contract dispute, accounting for 100% of the shares held for a period of three years.

In October, it was revealed that four Chinese car companies, including Zhongtai Motors, would go bankrupt at the end of the year. Although the four car companies have issued relevant statements to refute the rumors, they also reflect the operating difficulties of the current state of cars.

In order to ease the operating pressure of Zhongtai Automobile, in late August this year, led by Zheshang Bank, Bank of China, Construction Bank, and Yongkang Agricultural Merchant Bank issued 3 billion yuan of capital loans to Zhongtai Automobile, hoping that Zhongtai Automobile can resume production as soon as possible, and then revive the company's related business.

However, Zhongtai Automobile 3 billion yuan loan has been put in place, but the situation of resuming production is not ideal. Recently, CCTV conducted an on-the-spot investigation on the operation of Zhongtai Automobile and found that Zhongtai Automobile's factory was in a state of semi-stop production, many stores had no cars to sell, and even some stores had closed their doors and stopped selling.

Zhongtai Motors, which is in deep debt and operating difficulties, its Junma Motor is beset with difficulties, frequently reporting the news of bankruptcy. Junma car due to arrears of dealer payments led to the protection of dealers' rights for many times, car owners' after-sales problems can not be guaranteed, now Junma car and the distribution network has existed in name only, 400 phone also can not get through. Zhongtai Motors promised to help Junma solve after-sales service problems, but the current Zhongtai Motor is also difficult to protect itself.

In addition, according to Tianyan check information, Zhongtai Motor also faces a number of sales contract disputes since the beginning of this year. Last month, because Zhongtai Motor owed 621 million yuan in payment for Bic battery, Bick Battery appealed to the court four companies, Hangzhou Jiereng Power Battery Co., Ltd., Zhongtai New Energy Automobile Co., Ltd., Yongkang Zhongtai Automobile Co., Ltd., and Zhongtai Automobile Co., Ltd., asking the court to freeze more than 40 million of their assets.

According to the financial results released by Zhongtai Automobile, the company's operating income in the first three quarters was 5.401 billion yuan, down 59.59% from the same period last year, while the net profit of shareholders belonging to listed companies lost 760 million yuan, down 283.02% from the same period last year.

The current plight of Zhongtai Automobile is a microcosm of the downturn in the car market, as is Lifan Motor, which is also caught in bankruptcy rumors. In the first three quarters, Lifan achieved an operating income of 6.686 billion yuan and a loss of 2.633 billion yuan, with a total debt of 17.863 billion yuan.

In fact, whether it is Zhongtai Automobile or Lifan Automobile, or other car companies, it is difficult in the current cold winter season in the car market. Competition among car companies intensified in the first half of this year, and it is still unknown whether Zhongtai can counterattack in the predicament, but for Zhongtai, which has been making money by "plagiarism", if it does not have its own strength and advantages, it is easy to be washed away by the "flood" in the countercurrent of the car market. The rule of survival of the fittest is the best way to describe the current car market.

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