AutoBeta(AutoBeta.net)11/28 Report--

On the evening of November 27th, Zhongtai Automobile issued the latest announcement that its wholly-owned subsidiary Hangzhou Energy Saving Power Co., Ltd. owed a total of 616 million yuan in arrears and overdue liquidated damages to Shenzhen Bic Battery Co., Ltd., and requested that Zhongtai New Energy Automobile Co., Ltd., Yongkang Zhongtai Automobile Co., Ltd., Zhongtai Automobile and Jin Zheyong be jointly and severally liable for the above debts. The case was accepted by the people's Government of Jinkang City. The trial has not yet been held.

Zhongtai Automobile said in the announcement that because the above litigation case has not yet formed a final judgment, it is not possible to judge the impact of the lawsuit on the company's current or post-term profits. The company will actively respond to the lawsuit with lawyers and other relevant professionals to safeguard the legitimate rights and interests of the company.

In fact, the Bick battery filed a lawsuit with the court as early as August this year, and later the two sides coordinated and signed an agreement. Zhongtai Motor was able to repay the Beek battery debt on schedule, in September and October, Bick Battery took Zhongtai to court twice, asking it to repay the arrears.

Zhongtai Motor was unable to repay the goods on time due to financial problems, resulting in a shortage of funds for many suppliers, including Bic batteries, and a number of listed companies have issued relevant announcements to calculate bad debts.

It is understood that Zhongtai Automobile began to enter the field of new energy vehicles in 2008, and Bick Power is the largest power battery supplier of Zhongtai Automobile. In 2017, Zhongtai Automobile produced 35000 new energy vehicles, of which Bick Power provided power batteries for 20, 000. In 2018, Bick batteries supplied 18900 units of Zhongtai new energy vehicles. From January to August 2019, Zhongtai produced 1830 new energy vehicles and 1100 Bick batteries, accounting for about 60 per cent.

In fact, Zhongtai Automobile also has a lot of glorious history by virtue of "plagiarism". The cumulative sales of Zhongtai Automobile in 2014 was 166000 yuan, and the sales of Zhongtai Automobile reached 330000 in 2016, surpassing a number of established car companies. The Audi Zhongtai T600 and the Porsche Zhongtai SR9 have become popular models in the auto market.

However, although Zhongtai Motor has won the favor of many consumers in terms of model appearance, it has not formed its own advantages in terms of technology and product strength. In the case of increasing market competitiveness, Zhongtai Automobile is unable to form a good reputation in the market, and sales are also declining.

Zhongtai Motor sold 154800 vehicles in 2018 and accumulated 99600 vehicles in the first three quarters of 2019. The annual sales target of 150000 vehicles may be difficult to meet.

Zhongtai Automobile, once a well-known car company, is now heavily in debt, which makes people boast.

At present, Zhongtai Automobile has owed more than 10 suppliers. In addition to Bick batteries, there are more than ten suppliers, such as Chongqing Jiangda Aluminum Alloy Wheel Co., Ltd., Hefei Sunshine Electric Power Technology and so on. Some time ago, many dealers went to Zhejiang Yongkang Zhongtai Automobile headquarters to protect their rights because they could not get the arrears.

According to the financial report, Zhongtai Motor lost 760 million yuan in the first three quarters, down 283.02 percent from the same period last year, including a loss of 470 million yuan in the third quarter, down 524.50 percent from the same period last year.

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