Zotye Auto estimates 2019 loss at RMB6-9 bln

Shanghai (Gasgoo)- Zotye Auto expected its net profit attributable to shareholders in 2019 plunged 850%-1225% year on year with a loss of around RMB6-9 billion ($870-1,306 million), according to the announcement released on January 20.

The loss of basic earnings per share reached RMB2.96-4.44 ($0.43-0.64), versus a profit of RMB0.39 ($0.057) per share from the prior-year period.

The China-based privately-owned automaker attributes its loss to the downturn of automobile industry. To be prudent, it plans to set aside a large amount of goodwill impairment provision, which is projected to be about RMB6 billion ($870 million).

Zotye is said to sell about 100,000 vehicles from January to November of 2019, with monthly sales down by as much as 80% year on year.

According to its financial report, Zotye's net profit in the third quarter of 2019 (Q3) slumped by 524.5% from the year-ago period with a loss of around RMB 470 million ($68 million). Its Q3 revenue stood at roughly RMB361 million ($52 million), tumbling 88.41% over the previous year. The net losses for the first three quarters amounted to about RMB759 million ($110 million), a nosedive of 283.02% from the profit of the year-ago period. Meanwhile, the Q1-Q3 revenue totaled RMB 5.4 billion ($783 million), slumping by 59.59% year on year (photo source: Zotye).