Zotye’s net profit of first three quarters soars over tenfold year over year

Shanghai (Gasgoo)- Zotye Auto, a privately owned Chinese automobile manufacturer , reported the financial results of the first three quarters of this year. By the end of September, the company’s revenue for this year was RMB 11.595 billion, surging 831.13 percent. The net profit for this period was RMB 0.48 billion, increasing almost tenfold over the same period of last year.

According to the vehicle maker’s expectation, the net profit for the whole year will be between RMB 1.259 billion and RMB 1.362 billion with a substantial growth rate between 1,350.72 percent and 1,469.41 percent.  

Zotye said it completed the reorganization of major assets in April and acquired 100 percent stake of Yongkang Zotye Auto, which contributed to the large growth of its net profit. The annual net profit of Yongkang Zotye is predicted to be between RMB 1.43 billion to RMB 1.51 billion, exceeding the commitment target of RMB 1.41 billion. After excluding the first-quarter net profit of Yongkang Auto, the full-year net profit of the listed company attributable to its parent company may range from RMB 1.259 billion to RMB 1.362 billion.

The company also plans to change its name from Anhui Zotye Automobile Co., Ltd to Zotye Automobile Co., Ltd, which is subject to the approval of the industrial and commercial administration. The company thinks that the change in name will be helpful in expanding brand influence, showing its business practices and improving investors’ understanding. 

On August 22nd, Zotye announced the signing of a memorandum of understanding with Ford Motor Company, to explore the establishment of a joint venture for the development, production, marketing and servicing of a new line of all-electric passenger vehicles in China.