AutoBeta(AutoBeta.net)12/19 Report--

Since Zhongtai Automobile announced the formal resumption of production, its every move has also attracted the attention of the market. Yesterday, Zhongtai Automobile issued an announcement on the signing of major contracts by its subsidiaries, saying that Zhejiang Zhongtai Automobile Manufacturing Co., Ltd., a subsidiary of the company, recently signed an "exclusive Distribution and Service Agreement" with Losai International Trade (Yongkang). Law Sai International will act as the exclusive exporter and agent of Zhongtai Manufacturing in specific countries and regions in the Middle East to distribute T300 related products. The two sides agreed that the sales plan of Lousai International Trading (Yongkang) Co., Ltd. from 2022 to 2023 is: 10000 units of this model, the amount is 692 million yuan, and the price of the bike is equivalent to 69200 yuan each.

Relevant data show that Lexi International was established on September 20, 2022, with a legal representative of Zhu Zhaojin and a registered capital of 3 million yuan. The scope of business includes import and export of goods, import and export of technology, retail of auto parts, sales of mechanical and electrical equipment, sales of machinery and equipment, daily department store sales and so on. Interestingly, the registered address of Lexi International is in the same area as the office of Zhongtai Motor.

In this regard, Zhongtai Automobile said that there has been no such transaction between the company and Lexi International, and this is the first cooperation between the cooperation department. Law Sai International is in good business condition, has a good reputation and ability to perform the contract, and does not belong to the person who breaks its promise.

In fact, Zhongtai Motors' foray into the Middle East was revealed on the investor interaction platform a few days ago. On December 12, an investor asked Zhongtai Motors: what is the significance of setting up your international department, and which countries have the most orders at present? The company responded online, Hello, the company's overseas business is mainly for West Asia, South Asia, South America, the Middle East and other overseas markets, thank you for your attention to the company!

Relevant data show that Zhongtai, formerly known as Huangshan Golden Horse Co., Ltd., was established in 1998 and listed on May 19, 2000. As a member of its own brand, it has the dual production qualification of "traditional fuel vehicle + new energy vehicle". It also has production bases in Zhejiang, Hunan, Hubei, Shandong, Chongqing and other places, and its products cover sedan, SUV, MPV and new energy vehicle market segments. In 2003, Zhongtai holding Group was formally established, and at the beginning of 2006, Zhongtai Automobile realized its vehicle production through Chengdu Xindi Automobile Company. In January 2006, it launched its first car, Zhongtai 2008. Subsequently, Zhongtai Automobile implemented "reverse development", imitating from Volkswagen, Audi, and then to Porsche, Zhongtai Motors went further and further on the road of imitation. As the imitation satisfied the "luxury car dream" of many car lovers, Zhongtai Automobile was sought after by many car friends in a short period of time.

Zhongtai SR9 went public in 2016, with a sales record of 20,000 orders in three days, with a cumulative sales of 333100 vehicles in 2016, an increase of 50% over the same period last year, the highest since Zhongtai Motor was founded. However, without the support of core technology, it is doomed not to go very far, and its sales are falling sharply. Zhongtai Motor's revenue fell sharply to 2.986 billion yuan in 2019 from 14.764 billion yuan in 18 years, while net profit fell 1498.98 percent to-11.19 billion yuan. By 2020, with new energy subsidies running out of food and cars lacking the sixth national standard, Zhongtai's production and operation business will almost come to a standstill. According to relevant financial reports, Zhongtai Motor's operating income in the first half of 2021 was 380 million yuan, a decrease of 50.08 percent over the same period last year, and the net profit attributed to shareholders of listed companies was-750 million yuan. Zhongtai Motor lost 10.801 billion yuan in 2020, with net assets of-4.423 billion yuan at the end of the period.

It is understood that the vehicle entering the Middle East is the T300, which was mass-produced on October 20 this year. According to officials, the overseas version of the T300 is a compact SUV developed on the i-AFA platform, with the overall outline and appearance consistent with that of the T300, mainly for overseas markets such as West Asia, South Asia, South America and the Middle East. At the same time, the 2023 T300L will be launched to the domestic market at the same time, with a price of 59800. The T300, an original model of Zhongtai, was put on the market as early as August 2017 with a guiding price of 4.59-93800 yuan. " Earlier competitors are Harvard H2, Changan CS35, Baojun 510 and other models, but most of the series have been discontinued. At present, Geely Vision X3, Wuling Xingchi, Chery Tiger 3x and other models are in this level.

This time, it may be a good start for Zhongtai to enter the Middle East. However, for a newly established company, it is doubtful whether it will be able to meet its sales target of 100 million vehicles. Of course, Zhongtai Automobile said: the signing of this agreement will help to further consolidate the resumption of work and production of the company's vehicles, enhance the company's market competitiveness and brand awareness, and strive for more customer resources and orders. The implementation of this agreement has no significant impact on the company's operating performance this year, and is expected to have a positive impact on the company's future operating performance. However, the company also warned the risk that due to the long implementation period and the large amount of this agreement, if it is affected by unpredictable factors such as policy, market environment and other unpredictable factors in the course of implementation of this agreement, it may cause the agreement not to be performed as scheduled, fully performed or stopped.

From Zhongtai's response, it reveals some helplessness. After all, at the present stage in our country, the automobile consumer market of less than 100000 yuan has become seriously white-hot, and it is more difficult for Zhongtai T300 to find its own place in the domestic market. Looking at overseas markets, although business opportunities are everywhere, they have long been occupied by independent brands, such as Geely, Great Wall, BYD and so on. It is not easy for Zhongtai to find a way out in overseas markets. after all, other brands have been working hard for years.

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