What’s new: A notice from the bourse has prompted Zotye Automobile Co. Ltd. (000980.SZ) to deny a rumor that it will import a foreign-made electric-vehicle (EV) battery production line, amid speculation it could best China’s market-leading Contemporary Amperex Technology Co. Ltd.
The Zhejiang province-based carmaker denied the rumor in a Monday exchange filing after receiving a notice from the Shenzhen Stock Exchange asking it to clarify the situation. The rumor had helped send its share price surging 10% on each of the past three trading days — the daily limit.
Zotye’s share price rose 6.7% on Tuesday to 6.7 yuan (92 U.S. cents).
The context: After a two-year hiatus, Zotye last month restarted production of traditional fuel-powered cars. At the end of last year, it completed a restructuring after its stinging losses put it on the brink of insolvency. A subsidiary of private conglomerate Shenzhen Shenshang Holding Group Co. Ltd. put up 2 billion yuan as strategic investment to become Zotye’s new controlling shareholder.
In the first three quarters, it reported a net loss attributable to shareholders of 417 million yuan, less than the 990.2 million yuan it lost during the same period last year.
In June, Zotye filed a non-public offering plan to raise as much as 6 billion yuan to fund EV production, but it has not received regulatory approval so far.
Related: CATL Aims to Mass Produce Sodium-Ion Batteries in 2023
Contact reporter Guo Yingzhe (yingzheguo@caixin.com) and editor Joshua Dummer (joshuadummer@caixin.com)
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