Zotye Auto boasts 37% YoY surge in semi-annual net profit

Shanghai (Gasgoo)- Zotye Automobile Co., Ltd (Zotye Auto) generated RMB 10.251 billion in operation revenues and RMB 305 million in net profits for the first half of 2018, achieving year-on-year surge of 77.15% and 37% respectively, the automaker reported on August 21.

The company attributed to its impressive revenues and profits growth to the business combination of Yongkang Zotye Auto Co. Ltd, which is not under common control. Although the business merger made contribution to Zotye Auto's profit performance, the automaker did saw its sales performance climb evidently so far this year. According to the semi-annual report, Zotye Auto output and delivered 113,608 vehicles and 115,044 vehicles respectively from January to June. To be specific, the outputs of SUV, car and pure-electric passenger vehicle are 89,632 units, 10,043 units and 13,933 units. Meanwhile, the sales of these three segments reached 92,666 units, 9576 units and 12,802 units for the first six months.

Zotye Auto said that it will keep strengthening the internal reform so as to confront with the challenges brought by changeable policy, capricious economic climate and cyclical market boom and bust as well as the fierce competition among Chinese automakers. Zotye Auto plans to roll out 10 new models by 2020 covering such segments as SUV and MPV, according to a product planning revealed in recent days.

As early as last November, Zotye Auto and Ford Motor Company reached a definitive agreement to establish Zotye Ford Automobile Co., Ltd., a new 50:50 joint venture that will offer a range of stylish and affordable all-electric vehicles for consumers in China under a new indigenous brand. In addition, the Zhejiang-based automaker inked an MoU with Ford Smart Mobility LLC on May 2 to set up another 50:50 JV that will focus on providing ride-hailing operators and drivers with intelligent and customized all-electric vehicle solutions. The new JV involves a registered capital of $ 20 million, according to Ford China.