Many people's impression of Zotye Automobile is plagiarism and copycat, and many netizens joke that whether they can drive a Porsche depends on Zotye. But now look at everyone's Porsche

Many people's impression of Zotye Automobile is plagiarism and copycat, and many netizens joke that whether they can drive a Porsche depends on Zotye. But now, everyone's Porsche dream is not very well realized. After all, huge losses, as well as the departure of the founders, are a heavy blow to the company. In 2004, a car company in Taiwan happened to sell a car production line. In 2005, the production line and engineers imported from Taiwan were in place. So far, Zotye Automobile has the production capacity of the whole vehicle. But the model that really makes Volkswagen familiar is the SR9 launched by Zotye in 2016. The car has a Porsche-like look, but at a very low price. This also makes Zhongtai Xi mention the title of "Baoshitai". The launch of the SR9 was quickly welcomed by the market, and the pre-sale period was booked for 20,000 units. Many people are willing to increase the price of the car, and even some people are fighting for a small number of places, and the success of this cottage has also made Zotye taste sweet.

At this time, it coincided with the Chinese love SUVs, and Zotye has successively launched a variety of SUVs. And these cars have also been suspected of plagiarizing a number of luxury cars, not only Porsche, Lamborghini, Bugatti Veyron and other luxury cars have been copied. Only need to spend more than 100,000 yuan, Zotye can give you a high imitation car. Through the cottage luxury car, Zotye has a unique scenery for a while.

However, the scenery of Zotye did not last long. With the release of the new car, the small problems about Zotye Automobile continue to be. Many car owners are either repairing cars or on the way to repair cars. At the same time, Zotye's sales have also been declining. After reaching a peak of 330,000 sales in 2016, it has never returned to such high sales.

More seriously, on September 1, 2020, Zotye's parent company, Iron Bull Group, applied to the court for bankruptcy reorganization. On September 17, Zotye Automobile's largest creditor also filed for bankruptcy in court. Parent and subsidiary companies are facing bankruptcy at the same time.

However, Zhongtai did not bow to fate. Zotye's R&D staff is still working and is involved in the restructuring, trying to try to restore production of the car. Zotye's resumption plan includes: raising funds from the society, selling real estate, reshaping the brand image and so on. It can be seen that Zhongtai still has a full desire to survive.

But as of now, Zotye has still not fully recovered. At present, Zotye has not yet been able to determine the time to resume work and production, and the whole vehicle is still in a state of suspension. In terms of finance, according to the disclosed annual report, Zotye Automobile has lost more than 10 billion yuan in net profit attributable to the parent company for two consecutive years in 20 years and 19 years. The company's total market capitalization is only 23.6 billion.

First of all, there are major problems in Zotye's operation. On the one hand, there is a deviation in the direction of choosing the main business. On the other hand, Zotye did not seize the time of the big sale to carry out technology research and development and upgrading, but went farther and farther on the road of copycat. These problems are the result of Zotye's poor management.

Long before new energy vehicles became the outlet, Zotye launched new energy vehicles earlier. Among them, Zotye Cloud 100 sold 13,222 vehicles in 2015, and the sales volume can rank in the top ten in the country. The sales volume of Zotye new energy vehicles also accounts for nearly 10% of electric passenger cars. So far, Zotye has formed a third-line business in the production of traditional cars, new energy vehicles and auto parts.

However, with the success of Copycat Porsche, Zotye's investment in the field of new energy vehicles has slowed down. Since the rise of new brands such as Xiaopeng Automobile, a new car-making force, the new energy vehicle business has become more and more difficult to do. Compared with cottage luxury cars, the research and development and sales of new energy vehicles are very difficult. With the gradual cancellation of subsidies for new energy vehicles, Zotye New Energy is struggling.

In addition to new energy vehicles, traditional cars are not optimistic. The positioning of the cottage luxury car is very successful, and the appearance of the cottage luxury car is not the root cause of the decline of Zotye. The reason is still the quality problem of Zotye itself and the lack of core technology. Just copied the appearance of the luxury car, and did not have a complete experience. The product itself is unsatisfactory.

In addition, Zotye's capital operation is also an important reason for the huge loss. In 2016, Jinma acquired Zotye Automobile and formed a goodwill of more than 6 billion. Goodwill refers to the portion of the acquisition in which the consideration paid is higher than the net assets of the acquired party. It amounts to compensation for some unconfirmed resources of the acquired party, such as customer preferences.

Normal M&A behavior, the formation of goodwill is normal corporate behavior. However, for Zotye, in 2019, a one-time impairment of goodwill was made, making the value of goodwill zero and causing a huge loss in the current period. At that time, most of the acquired counterparts were shares issued by Jinma shares. The actual controllers of Jinma shares and Zotye Automobile are the same. This makes one have to question the rationality of this acquisition.

For the capital market, ST Zotye's 2019 audit opinion is negative, which means that there are material misstatements in the financial statements. After the listing, although Zotye made serious losses, it was not the actual controller's money that lost money, but the money of tens of millions of retail investors. Instead, the founder cashed out 11.6 billion yuan and left the country, hollowing out the listed company.

As an automobile manufacturer, Zotye is also difficult to satisfy consumers. The production of cars with small problems is constantly being repaired. The rise of Zotye is due to plagiarism, but the decline is not just simple plagiarism, but more importantly, the quality of its products is really worrying. Without quality products, it is difficult to open the market. In order to make great progress, enterprises must constantly upgrade, accumulate and upgrade technology, and launch good products. Unfortunately, Zotye did not do it.

I believe that many consumer friends have purchased Zotye's cottage products, and even some people have been fans of Zotye. However, today's Zhongtai is afraid that it will be difficult to recover for a while, and it may even not be able to return to its heyday. Products are the foundation of a company, and it is clear that Zotye makes good products. Finally, I would like to ask you, how do you think of Zotye? Are you optimistic about the future of Zotye?