AutoBeta(AutoBeta.net)09/11 Report--

Recently, the Shenzhen Stock Exchange (hereinafter referred to as "Shenzhen Stock Exchange") issued a decision on disciplinary action against Zhongtai Automobile and related parties. It has been found out that * ST Zhongtai controlling shareholders are involved in three aspects: illegal appropriation of non-recurrent funds, failure to perform review procedures and information disclosure obligations in related transactions, and failure to disclose major litigation in a timely manner, as follows:

In view of the above violations, the Shenzhen Stock Exchange made the following disciplinary decisions: (1) to publicly censure * ST Zhongtai; (2) to publicly condemn * ST Zhongtai controlling shareholder Tieniu Group and the actual controller should be publicly censured; (3) to publicly censure Jin Zheyong, the then chairman and president of * ST Zhongtai, and Fang Maojun, the then financial director. 4. Zhang Zhi, then Chief Financial Officer of * ST Zhongtai, and Yang Haifeng, Secretary of the Board of Directors, were given a notice of criticism.

ST Zhongtai publicly apologized for the fact that it was publicly condemned by the Shenzhen Stock Exchange. * ST Zhongtai said that the company will seriously learn lessons, strengthen the sense of risk responsibility, and take practical measures to prevent this from happening again.

Official data show that Zhongtai Automobile is an automobile manufacturing enterprise with vehicle research and development, manufacturing and sales as its core business, with three major automobile brands Zhongtai, Jiangnan and Junma, and a complete vehicle production base in Zhejiang, Hunan, Hubei, Shandong and Chongqing, with products covering sedan, SUV, MPV and new energy vehicles and other market segments, registered and established in 2003.

Zhongtai Motors is not very famous among Chinese car brands, but with its "high-end reference", it has been sought after by consumers in a short time, especially the Porsche-based SR9, which quickly became an "online celebrity" car because of its low price and "high end" after its launch, and contributed to annual sales of 300000 vehicles in 2016 and 2017.

However, since 2018, the situation of Zhongtai Motor has become very critical. After years of declining sales, Zhongtai Automobile was finally filed for bankruptcy restructuring. On the evening of September 16, 2020, * ST Zhongtai issued a notice that Zhejiang Yongkang Rural Commercial Bank Co., Ltd. (hereinafter referred to as "Zhejiang Yongkang Nong Commercial Bank") submitted an application for pre-restructuring of the company to the Yongkang people's Court on the grounds that Zhongtai Motor was unable to repay its due debts and obviously lacked solvency, but still had restructuring value. On June 9, 2021, Jinhua Intermediate people's Court ruled to accept the reorganization application of Zhejiang Yongkang Rural Commercial Bank Co., Ltd., indicating that Zhongtai has officially entered bankruptcy reorganization.

However, Zhongtai's road to restructuring is not smooth. On May 12, * ST Zhongtai announced that the company's pre-restructuring manager, Shanghai Zhiyang Investment Co., Ltd. (hereinafter referred to as "Shanghai Zhiyang"), decided to suspend its investment in Zhongtai Motors. June 25, * ST Zhongtai issued a notice that Zhibo Investment decided to stop investing * ST Zhongtai. In other words, the restructuring of Zhongtai has not made substantial progress so far.

In the case that Zhongtai restructuring has not yet been determined, dealers have been "desperate" and went directly to the headquarters to protect their rights and collect debts. According to media reports, on the evening of Sept. 7, Zhongtai dealers from Xizang, Liaoning, Guangdong, Sichuan, Hebei and other parts of the country once again came to the gate of the local government and Zhongtai Automobile headquarters to collect debts. It is worth mentioning that this is not the first time that dealers from all over the country have come here to protect their rights. Although they have been "door-to-door" many times to collect debts, the result is not satisfactory. Zhongtai directly responded that "the business of the car sales company is none of our business."

It is understood that Zhongtai Automobile sales Co., Ltd. has previously been ruled by Yongkang Court for bankruptcy liquidation. According to Tianyan check, Zhongtai Automobile sales Co., Ltd. is a subsidiary of Zhongtai Automobile. However, the two companies are independent of each other, and both have independent legal personnel. if the subsidiary has debt problems, the general principle is that the subsidiary pays off the debt, while the parent company is not required to bear the debt liability. Of course, if it is proved that the parent company fraudulently used its subsidiaries to commit fraud, the parent company may be required to admit the corresponding responsibility.

Prior to this, Zhongtai dealers had communicated with Zhongtai managers, hoping to add Zhongtai Automobile sales Company to the restructuring list, so that dealers could recover the arrears, and the manager responded to efforts to include Zhongtai sales Company in restructuring, but it is clear that it has not been realized so far.

* ST Zhongtai disclosed its financial results for 2020, showing a revenue of 1.338 billion yuan and a net loss of 10.801 billion yuan during the reporting period. In the first half of 2021, the revenue was 384 million yuan and the net loss was 753 million yuan. By the end of the first half of the year, the net assets of * ST Zhongtai belonging to shareholders was-5.175 billion yuan.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat