On July 17, Zotye Auto made an announcement stating that its subsidiary, Zotye New Energy Automobile Co., Ltd., as well as its Changsha Branch and the Xingsha Manufacturing Plant under Hunan Jiangnan Automobile Manufacturing Co., Ltd., had been embroiled in a sales contract dispute with Xiangtan Adient Automotive Components Co., Ltd. Now, Zotye Auto is actively seeking to resolve the issue amicably by reaching a settlement with Xiangtan Adient and entering into a 'Debt Settlement Agreement.'

According to the terms of the agreement, once Zotye New Energy pays RMB 6 million, Xiangtan Adient will relinquish any further claims regarding the remaining debt repayment. This move will effectively bring an end to the creditor-debtor relationship between the two entities.

The settlement is expected to play a pivotal role in helping Zotye Auto clear its historical debts, revitalize its credit system, and avert any potential asset enforcement actions.