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On November 31st, * ST Zhongtai issued a notice on the approval of the reorganization Plan by the Court. The company has received a Civil order from the Jinhua Intermediate people's Court, which approved the reorganization plan of Zhongtai Automobile Co., Ltd. at the same time, the reorganization procedure of Zhongtai Automobile Co., Ltd. was terminated. Affected by the news, * ST Zhongtai once again rose the limit, since the announcement of restructuring, * ST Zhongtai share price has risen more than 5 times.

Reviewing the road of Zhongtai Automobile restructuring: Zhongtai Automobile is an independent automobile brand in Zhejiang, which not only has the dual production qualification of "traditional fuel vehicles + new energy vehicles", but also has a production base in Zhejiang, Hunan, Hubei, Shandong, Chongqing and other places, with its products covering sedan, SUV, MPV and new energy vehicle market segments. As one of the independent car companies, it is famous for launching a number of models in 2016, such as the T600 sports version, the SR9, the New Damai X5 and so on. In particular, SR9 has become Zhongtai's "star" product after its launch. Thanks to this, Zhongtai Automobile's cumulative sales reached 333100 vehicles in 2016, an increase of 50% over the same period last year, which is also the peak of Zhongtai Automobile sales. However, the good times did not last long, due to the subsequent outbreak of quality problems, word of mouth plummeted, Zhongtai car sales have been declining, after a decline in 2017, sales fell to 154800 in 2018 and only 116600 in 2019.

From October 2020 to June 2021, eight Zhongtai companies were successively accepted by the people's court because of their debt crisis. They are Zhongtai Manufacturing, Jiangnan Manufacturing, Yongkang Zhongtai, Zhongtai New Energy, Zhongtai Auto Sale, TieNiu car body, Hangzhou Yiwei, Hangzhou Jiereng. On June 9, 2021, because Zhongtai Motor was unable to pay off its due debts and had the possibility of losing its ability to repay, the Jinhua Intermediate people's Court ruled to accept the reorganization according to law on the application of creditors, and appointed the manager to carry out all kinds of reorganization work.

On September 30, 2021, according to the results of the review vote, Jiangsu Shenshang holding Group Co., Ltd. (hereinafter referred to as "Jiangsu Shenshang") was finally determined as the restructuring investor. On October 9, the investors of Zhongtai Automobile restructuring were finally identified as Jiangsu Shenzhen Merchants, Shanghai Tianqi and Hunan Zhibo as the second-ranking investors of the company. On October 27th, Zhongtai announced that 2 billion yuan of restructuring funds have been put in place, the funds will be used to pay restructuring costs, pay off debts, and take advantage of industrial synergy to help Zhongtai Automobile restore the national sales network as soon as possible.

It is worth mentioning that Jiangsu Shenzhen businessmen have a long history, and the legal representative is Huang Jihong. The company is a large private enterprise jointly invested and established by 79 key private enterprises in Shenzhen, mainly engaged in large-scale project investment and high-tech development and production. mainly to expand the financial industry and real estate development. It successfully managed the restructuring of the huge group in 2019 and became the intended investor in the restructuring of the huge group. Later, Pang Qinghua, then chairman of the giant group, relinquished his stake from the giant, and Huang Jihong became the actual controller of the huge group. However, whether Jiangsu Shenshang can help Zhongtai Motor out of its predicament, there are still some variables.

After winning the support of investors, Zhongtai Motor said it would make efforts in many ways. In the traditional business, Zhongtai Automobile will gradually adjust the brand strategy and build a characteristic strategy system for Zhongtai, Junma and other national automobile brands, and devote itself to building the most influential national automobile enterprises. Short-term plans to reorganize its brands, concentrate resources and boost sales through strategies such as merging homogenized models, optimizing product sequences, optimizing cost structure and restructuring dealer networks; long-term plans to build a brand matrix in the form of acquisitions and joint ventures to lay out the mid-and high-end new energy vehicle market. In addition, the business plan shows that customized network travel has become a trend, Zhongtai Automobile will make use of the resource advantage of restructuring investors to quickly layout the ride-hailing market and expand Zhongtai's development space. At the same time, focus on consumer hot spots and promote mini electric vehicles to the countryside.

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