On June 12, 2026, Zotye Auto made an announcement stating that the company had recently entered into a debt settlement arrangement with Chongqing Liangshan Construction Investment Group Co., Ltd. and Chongqing Liangshan Construction Development Co., Ltd., culminating in the signing of a Debt Settlement Agreement. The total debt settled under this agreement stands at approximately RMB 170.3 million. This includes RMB 50 million in principal and interest that Chongqing Liangshan Construction Investment Group Co., Ltd. owes to the Chongqing Branch of Hunan Jiangnan Automobile Manufacturing Co., Ltd., as per an Entrusted Loan Agreement.

The debt repayment plan is structured into three distinct segments: Firstly, the Chongqing Branch of Hunan Jiangnan Automobile Manufacturing Co., Ltd. is mandated to clear the full principal and interest of the entrusted loan within 15 working days following the agreement's activation. Secondly, the remaining debt, amounting to RMB 113.8 million, will be repaid in equal installments over a span of seven years, from January 2027 to December 2033, with monthly payments set at RMB 1.3544 million. Thirdly, the same branch is required to compensate Chongqing Liangshan Construction Investment Group Co., Ltd. for the purchased revolving materials at their original purchase value, totaling RMB 2.9245 million, within 45 calendar days after the agreement comes into effect.

This debt settlement initiative is poised to aid in the restoration of the company's credit system and facilitate the resumption of work and production activities at the Yongkang base. It is anticipated to yield a favorable impact on the company's current net profit and net assets, while simultaneously easing the company's short-term financial strain.