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Zhongtai Motor announced on January 20 that it expects to lose 6 billion-9 billion yuan in 2019, down 85% from 800 million yuan in the same period last year.

In view of the huge profit loss, Zhongtai Automobile said in the announcement that due to the influence of the macroeconomic situation, the overall prosperity of the automobile industry was not high, and the company's car sales dropped sharply, which did not meet expectations. According to the principle of prudence, it is expected that the provision for impairment of goodwill will be about 6 billion yuan.

Due to the lack of technology and funds, some of the early development of car companies will more or less learn from the mature design techniques of domestic and foreign car companies, in order to be sought after by consumers, and Zhongtai Automobile is such an automobile company.

Zhongtai Automobile is a car company that started by imitation. With the technique of "high-end reference", the products launched are highly sought after by consumers in a short time, so many netizens have given Zhongtai a "good-sounding" name-imitating Thailand. In particular, Zhongtai SR9, as a model that highly imitates Porsche MACAN, quickly became an "online celebrity" after its launch, and was called "Porsche" by netizens.

Although imitation can be sought after by consumers in a short time, it has been unable to keep up with the development of the times in terms of technology and product power for a long time. After a very difficult year in 2018, Zhongtai Motor fell into a difficult situation in 2019.

Zhongtai's sales in 2019 were 153000, down 40.1 per cent from a year earlier, according to the China Automobile Association. According to the financial report, Zhongtai Automobile's operating income in the first three quarters of 2019 was 5.401 billion yuan, down 59.59% from the same period last year; the net profit of shareholders belonging to listed companies lost 759 million yuan, down 283.02% from the same period last year.

Zhongtai Automobile due to poor sales, arrears of employees' wages and dealer payments and other reasons, a number of upstream suppliers apply for different amounts of property preservation. In addition, Junma Motor, which was founded two years ago, has been unable to survive due to operational difficulties, the factory shut down the company, and a number of upstream dealers gathered to Zhongtai Automobile headquarters to protect their rights.

Due to the slow updating of products, Zhongtai Motor under the sixth national standard can only sell models of the national five standard. According to CCTV, due to various reasons, the factory is in a state of semi-shutdown and the production line is stagnant. Its dealers also have no cars to sell.

Due to financial problems, Zhongtai Automobile was unable to repay its suppliers, and suppliers were unable to normally supply parts to state cars, resulting in Zhongtai Motor unable to put into production normally, coupled with slow technology updates, a series of endless cycles led to a fiasco in the sales of Zhongtai Automobile's existing models.

At present, the automobile industry is still in a state of decline. In the environment of intensified reshuffle in the automobile industry, the days of relying on "imitation" to obtain sales have passed, although the weak performance of more than one car company in the past year is the embodiment of the market downturn. However, for those car companies that continue to lose money, how to turn around in the new year has become a problem that many car companies are trying to solve.

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