On September 15, Zotye Auto made an announcement stating that the plaintiff, Shanghai Sizhi, had earlier initiated a lawsuit against Zotye Auto at the Jinhua Intermediate People's Court over intellectual - property contract disputes. Shanghai Sizhi demanded payment of intellectual - property licensing fees along with overdue interest. In reaction, Zotye Auto lodged a counterclaim, aiming to terminate the contract.

Recently, Zotye Auto received a 'Civil Judgment' from the Zhejiang High People's Court. In the second - instance ruling, the court upheld the decision to terminate the contract between the two parties. It also overturned the part of the first - instance ruling that dismissed all of Shanghai Sizhi's claims. Instead, the court ruled that Zotye Auto is obligated to pay Shanghai Sizhi 29.5 million yuan and overdue interest. This judgment is likely to exert a substantial influence on the company's financial performance.