Zotye brand is known because its models are like Porsche,Zotye SR9 – a Chinese Porsche Macan copycat.
March 27, Zotye Automobile announced that due to personal reasons, Lian Gang applied to resign as the company’s president. After resignation, he will still hold the positions of director of the 8th board of directors, member of the strategic committee of the board of directors, and member of the nomination committee of the board of directors. During the vacancy of the president, the president’s responsibilities will be performed by Hu Zeyu, the chairman of Zotye Automobile. Zotye Automobile pointed out in the announcement that it will complete the appointment of the president as soon as possible in accordance with the relevant regulations.
It is reported that Lian Gang was born in 1960, graduated from Harbin Engineering University, with a doctoral degree. He is currently the vice president of China Changan Automobile Group, a director of the 8th board of directors of Zotye Automobile Co., Ltd., a member of the strategic committee of the board of directors, and a member of the nomination committee of the board of directors. In August 2018, Lian Gang served as the vice president of Zotye Automobile. Three years later in 2021, he “took over the task at a critical moment” and became the president of Zotye Automobile. Before joining Zotye Automobile, he has served as a designer, section chief, minister of the technical department, deputy general manager of Dong’an Power Co., Ltd., deputy general manager of Dong’an Group, deputy general manager of Harbin Aircraft Industry Group, and deputy minister of the Automotive Business Unit of AVIC Science and Technology Industry Co., Ltd.
This is the second personnel change within Zotye Automobile in 2024. On January 31, Zotye Automobile announced that Ms. Yu Lili, the company’s CFO, had applied to resign from the position of CFO due to personal reasons. After resignation, Ms. Yu Lili will no longer hold any position in the company. During the period when a new CFO has not been appointed, the company’s vice president, Ms. Cao Min, will temporarily perform the responsibilities of the CFO.
It is reported that Lian Gang was born in 1960, graduated from Harbin Engineering University, with a doctoral degree. He is currently the vice president of China Changan Automobile Group, a director of the 8th board of directors of Zotye Automobile Co., Ltd., a member of the strategic committee of the board of directors, and a member of the nomination committee of the board of directors. In August 2018, Lian Gang served as the vice president of Zotye Automobile. Three years later in 2021, he “took over the task at a critical moment” and became the president of Zotye Automobile. Before joining Zotye Automobile, he has served as a designer, section chief, minister of the technical department, deputy general manager of Dong’an Power Co., Ltd., deputy general manager of Dong’an Group, deputy general manager of Harbin Aircraft Industry Group, and deputy minister of the Automotive Business Unit of AVIC Science and Technology Industry Co., Ltd.
Zotye was formerly known as Huangshan Golden Horse Co., Ltd., established in 1998, and was listed on May 19, 2000. In September 2003, Zotye Automobile was registered and started vehicle manufacturing by taking the road of Chengdu Xinda Di Automobile Co., Ltd. in early 2006. Since then, it has launched vehicles such as Dadi Zotye 2008 and Zotye SR9, which were quickly recognized by consumers, but the good times did not last long.
However, by 2023, Zotye Auto’s vehicle business had not yet fullyrecovered, and there were also frequent changes in the executive level. On May 31, 2023, Zotye Auto issued an announcement that Mr. Huang Jihong resigned from his positions as the chairman of the board of directors and a director of the company due to personal reasons, as well as from his positions as a member of the strategic committee and the nomination committee of the 8th board of directors. After the resignation of the relevant positions, Mr. Huang Jihong will no longer hold any position in the company. In the same year, on November 30, Zotye Auto directors Ye Changqing and Liu Ya submitted their resignations and will no longer hold any positions in Zotye Auto. Among them, Ye Changqing applied to resign as a director of Zotye Auto and acting chairman, and also resigned as a member of the strategic committee; Liu Ya applied to resign as a director and vice president, and also resigned as a member of the nomination committee, the audit committee, and the compensation and assessment committee. In addition, Zotye Auto’s independent directors, Cui Xiaozhong and Wang Wulin, also resigned from all positions in the listed company due to personal reasons.
In addition to the successive departures of several senior executives, Zotye Auto’s business performance is also not ideal. On January 29, Zotye Auto released the 2023 annual performance outlook: Zotye Auto’s net profit attributable to shareholders of the listed company in 2023 is expected to lose 750 million yuan to 900 million yuan. In the same period last year, it lost 910 million yuan, with a narrower loss margin year-on-year; the non-recurring profit and loss after deducting is expected to lose 800 million yuan to 1 billion yuan. Last year, it lost 1.01 billion yuan, with a narrower loss margin year-on-year.
For the reason for the expected loss in performance, Zotye Auto explained that compared with 2022, the revenue from the sales of complete vehicles of Zotye Auto in 2023 has increased, but the revenue from auto parts and door business has decreased due to the market environment, so the overall revenue has decreased. In addition, in 2023, the vehicle business of Zotye Auto is still in the process of recovery, and the sales volume is small. At the same time, the company plans to accrue approximately 300-400 million yuan for asset impairment provisions and bad debt provisions, so the overall performance is still in a loss state.
At present, Zotye Auto has deployed vehicle production bases in Zhejiang, Hunan, Hubei, Shandong, Chongqing and other places, and its products cover细分 markets such as sedans, SUVs, MPVs and new energy vehicles.
On March 19, Zotye Auto stated on the interactive platform: “The company has a research and development team for complete vehicle.” However, for Zotye Auto, the only product it can rely on at present is a micro electric vehicle, Jiangnan U2, under its subsidiary, Jiangnan Automobile. The car was launched in February 2023 and is the first new car released by Zotye Auto after its bankruptcy and reorganization. It is positioned as a pure electric small car and offers a total of six models with a price range of 56,800-98,800 yuan. However, since its launch, the official has not disclosed the sales of this car.
As one of the independent brand automakers, although Zotye Auto has resumed normal production, there are still many problems that need to be solved. Zotye Auto urgently needs to find its position and reshape its brand image.
