Starting from a ＂cottage car＂, ST Zotye, an auto demon stock, lost 270 million yuan in the first half of the year, and it is still far away to return to work ｜ Look at the financial report.

On the evening of August 8, ST Zhongtai (000980.SZ) announced the semi-annual report. The data shows that during the reporting period, the company’s operating income was 2.98 yuan, a year-on-year decrease of 22.5%; The net profit attributable to shareholders of listed companies was -2.77 yuan, a year-on-year decrease of 63.15%.

This is not the first time to fall into the quagmire of losses. In 2019, the company lost as much as 11.19 billion yuan. In 2018, the company also lost nearly 10.34 billion yuan. In three years, the total loss of ST Zhongtai reached 22.24 billion yuan.

However, Titanium Media APP noticed that although ST Zhongtai was shocking in financial data, its performance in the capital market was very "crazy". According to the statistics of titanium media APP, in 2021, ST Zhongtai had 87 daily limit times and 41 daily limit times, with an interval amplitude of 651.85%.

However, it is worth noting that since November 19 last year, the company’s share price has been falling from the highest point of 9.31 yuan, and the cumulative decline has reached 50.69% so far. As of the close of August 11th, the company’s share price was 4.27 yuan.

So, why did ST Zhongtai become a "demon stock"? After completing the restructuring plan that has attracted much attention, can Zotye Auto become a "golden phoenix" as investors expect?

According to public information, ST Zotye was established in 2003. It is an automobile manufacturer with R&D, manufacturing and sales of automobile as its core business, and it is also one of the largest automobile instrument manufacturers in China. The company owns independent brands such as Zotye, Jiangnan and Junma, and its products cover four market segments: SUV, car, MPV and new energy vehicle.

At the beginning of its establishment, in order to attract consumers, Zotye Automobile has been opening up the market by imitating mature automobile brands.

For example, in 2006, Zotye launched a model with almost the same appearance as Toyota Terui, but the price was only half — — Zotye 2008; In 2007, Zotye acquired Jiangnan Automobile and launched a Jiangnan Alto model, and quickly occupied the car market at a low price of 18,000, with sales reaching 30,000 in the first year.

In 2009, the state introduced the pilot policy of subsidies for new energy vehicles, and Zotye Auto became the first car companies to enjoy the bonus of subsidies for new energy. In the following years, Zotye Automobile still expanded rapidly by imitation.

In 2016, Zotye launched another model that looks like Porsche Macan — — Zotye SR9, despite being scolded by netizens, has also achieved good sales results — — In 2016, the cumulative sales volume of Zotye Automobile reached 333,100 units, an increase of 50% over the same period of last year. According to the statistics of China Passenger Association, in 2017, Zotye Automobile ranked eighth in the sales list of local car companies in China.

However, because Zotye’s way of building cars is mainly to imitate plagiarism, Zotye’s car failures that have not mastered the core technology occur very frequently; In addition, in the face of fierce competition, consumers gradually have more choices. The data shows that in 2018, the company’s passenger car sales fell to 154,800 units, and in 2019, the sales volume was only 116,600 units. By 2020, Zotye Automobile has been seriously insolvent, unable to continue to operate, and has to go through bankruptcy liquidation.

Surprisingly, after the reorganization information was issued, the company’s share price rose rapidly the next day.

The reason is that the new energy vehicles were hot that year, and most investors believed that Zotye’s restructuring would be successful, even welcoming the extraordinary financial owners. Most importantly, Zotye Automobile has the qualification to build a car that the car-making forces covet.

Titanium Media APP learned that since June 2017, the state has suspended the approval of new energy vehicle production qualifications. At one time, Weimar Automobile acquired Dalian Huanghai for 1.18 billion yuan to obtain the qualification of new energy production; In order to obtain the production qualification, Baiteng Automobile acquired faw xiali’s FAW Huali with 1 yuan, but assumed the debt of FAW Huali of 855 million yuan; In order to obtain qualification, LI also acquired 100% equity of chongqing lifan Automobile Co., Ltd. for 650 million yuan; Xpeng Motors also obtained the production qualification through the formal acquisition of Guangdong Foday Automobile Co., Ltd. last year.

Therefore, in addition to the "nails", Zotye’s rotten ship is still holding on to its most valuable "engine". For companies that want to enter new energy vehicles, there is no reason not to reorganize and leak.

However, in 2020, Zotye Automobile’s operating income continued to drop by 55.18% to 1.338 billion yuan, and its net profit attributable to its mother was-10.801 billion yuan. In addition, the announcement shows that due to the shortage of funds, the company’s automobile production bases are basically in a state of suspension or semi-suspension, and the company’s main product, the whole vehicle, basically has no sales revenue. But none of this has affected *ST Zotye’s footsteps of becoming an eight-fold "mad cow" stock in 2021. After all, what capital needs is a good story.

However, Titanium Media APP noticed that after the company entered the restructuring plan last year, although everything has been settled, the market has no expectation and freshness. The company’s share price has been falling since last November.

According to the announcement, on September 30th, 2021, Jiangsu Shenshang Holding Group Co., Ltd. was finally determined as the company’s reorganization investor, and Shanghai Taiqi Automobile Technology Partnership and Hunan Zhibo Zhiche Equity Investment Partnership were selected as the company’s junior reorganization investors.

On the same day, the company and the manager signed the Reorganization Investment Agreement of Zotye Automobile Co., Ltd. with Jiangsu Shenshang, and Jiangsu Shenshang paid 550 million yuan to the designated account as the performance bond on the same day. According to the Agreement on Restructuring Investment, the above-mentioned companies will provide 2 billion yuan for Zotye Automobile in the future. On December 28th, 2021, the company received the Civil Ruling from Jinhua Intermediate People’s Court, confirming that the reorganization plan of the company had been implemented. At this point, the reorganization of the company finally came to an end.

And on June 10 this year. The company has released a new fund-raising plan. According to the announcement, ST Zhongtai intends to raise no more than 6 billion yuan from no more than 35 specific investors. The number of shares issued does not exceed 1.52 billion shares. With regard to the funds raised in this issuance, ST Zhongtai plans to use 4.732 billion yuan for the new energy intelligent networked vehicle development and R&D capability improvement project, 468 million yuan for channel construction project investment and 800 million yuan for supplementary working capital.

In addition, according to ST Zhongtai’s statement in the announcement, after the fundraising of 6 billion yuan is completed, the group will develop four new energy vehicles and intelligent networked passenger cars based on three electric vehicle platforms, including three pure electric medium and large SUVs and a car.

But in the past two months, the capital has not shown too much enthusiasm for this. According to the semi-annual report, it can be seen that the company is still in a state of loss. In addition, it is worth noting that in the semi-annual report, the company proposed that the company’s vehicle production was at a standstill during the reporting period, and its operating income mainly came from the sales revenue of auto parts and door industry. During the reporting period, it has been striving to resume work as soon as possible, but the specific time for full resumption of work and production cannot be determined.

It can be seen that although ST Zhongtai has initially stepped out of the "quagmire", there are still many unknowns about whether it can really get back on the road.

In addition, at present, in addition to the financial problem, the technical problem of new energy vehicles has to be solved. Previously, the company was gradually eliminated by the market because of lack of technology accumulation and weak product strength. Therefore, after nearly two years of hype and storytelling, investors may hope that ST Zhongtai can come up with something practical.(This article is the first titanium media, author | Yu Ying)