On the evening of December 24, Zotye Auto released an announcement, revealing that it had arrived at a mediation pact with Bank of China and the Yongkang Sub-branch of China Construction Bank concerning a dispute over a financial loan contract. This strategic move effectively averted the potential seizure or auction of the company's assets, thereby clearing the path for a resumption of production.

As per the agreement, Zotye Auto is mandated to remit a portion of the principal amount along with legal fees to the two banks by the end of 2025. The remaining debt, amounting to approximately 385 million yuan, is to be settled by the end of January 2026, culminating in a total debt repayment exceeding 400 million yuan. The successful resolution of this dispute circumvented the need for compulsory enforcement procedures and mitigated risks to the company's core assets.

Presently, the company has successfully unfrozen some of its dedicated debt-repayment accounts. Moreover, it has outlined plans to liquidate its remaining inventory to facilitate debt repayment and bolster its working capital. Zotye Auto expressed that this arrangement would facilitate the company's return to regular operations and align with the enduring interests of its shareholders.

As of the third quarter of 2025, the company's revenue for the initial nine months of the year reached 419 million yuan, marking an 8.98% year-on-year increase. However, net losses persisted, amounting to 223 million yuan. Over the preceding seven years, the company has amassed losses surpassing 25 billion yuan, with sales plummeting to a mere 14 vehicles in 2024. This has left its vehicle manufacturing operations in a prolonged state of stagnation.