On December 24, Zotye Auto issued a statement revealing that the sixth extraordinary meeting of its ninth board of directors for the fiscal year 2025 had approved a resolution to reach a settlement with the Yongkang Branch of the Bank of China and the Yongkang Branch of China Construction Bank.

Previously, Zotye Auto found itself embroiled in two financial loan contract disputes. As a result, the Yongkang Branch of the Bank of China had applied to freeze 50,000 yuan and related stocks of the company, while the Yongkang Branch of China Construction Bank had sought to freeze 4.2142 million yuan and associated stocks. Subsequently, upon the company's application, these freeze orders were lifted, and neither dispute had advanced to the trial stage.

Recently, Zotye Auto successfully negotiated mediation agreements with both banking institutions. Under the terms of these agreements, Zotye Auto is obligated to repay a combined principal and interest amount of 222 million yuan to the Yongkang Branch of the Bank of China. Specifically, 10.178 million yuan is due by December 31, 2025, with the remaining balance to be cleared by January 31, 2026. Similarly, the company is required to settle a total of 183 million yuan in principal and interest with the Yongkang Branch of China Construction Bank, with 10 million yuan payable by December 31, 2025, and the outstanding amount to be paid off by January 31, 2026.

This settlement is poised to play a pivotal role in facilitating Zotye Auto's asset revitalization efforts and paving the way for its resumption of production.