Zhongtai Automobile Vice President Resigns, Company Faces Multiple Challenges and Losses

TapTechNews August 26th news, on August 22nd, Zhongtai Automobile Co., Ltd. released an announcement about the resignation of the vice president. The announcement shows that the board of directors of Zhongtai Automobile has recently received a written resignation report submitted by the company's vice president Wang Lei. Wang Lei applied to resign from the position of vice president of the company for personal reasons, and his resignation report will take effect from the date it is delivered to the company's board of directors. After resigning, Wang Lei will no longer hold any position in the company.

TapTechNews noted that Wang Lei only became the vice president of Zhongtai Automobile in May this year, and now has only served for three months. It is worth noting that many senior executives of Zhongtai Automobile have left this year:

In February this year, Ms. Yu Lili applied to resign from the position of chief financial officer of the company for personal reasons;

In March, Mr. Lian Gang applied to resign from the position of president of the company for personal reasons;

In April, Ms. Wang Fei, the representative of securities affairs, resigned for personal reasons;

In May, Mr. Lian Gang applied to resign from the position of director of the Eighth Board of Directors, and at the same time resigned from the positions of member of the Strategic Committee and member of the Nomination Committee under the board of directors.

The annual report of Zhongtai Automobile shows that in 2022, the revenue of Zhongtai Automobile was 783 million yuan, a decrease of 5.09% year-on-year; the net loss was 909 million yuan, a decrease of 28.82% year-on-year; in 2023, the revenue was 734 million yuan, a decrease of 6.28% year-on-year; the net loss was 927 million yuan, and the loss expanded. Zhongtai Automobile has suffered losses for five consecutive years since 2019, with a cumulative loss amount of more than 24.5 billion yuan.

In the first quarter of 2024, Zhongtai Automobile achieved operating income of 113 million yuan, a decrease of 30.42% year-on-year; and achieved a net loss of 124 million yuan, an expansion of 33.81% year-on-year.

Zhongtai Automobile expects that the net loss of the company's shareholders belonging to the listed company in the first half of 2024 will be 290 million yuan to 390 million yuan, and the net loss in the same period of the previous year was 284 million yuan. Compared with the same period of the previous year, the sales revenue of the company's entire vehicle in the first half of 2024 has been significantly reduced, and at the same time the sales revenue of other subordinate subsidiaries has decreased, so the overall revenue has decreased. The company's entire vehicle business is still in the process of recovery in the first half of the year, and the sales volume is very small. At the same time, the operating performance of other subordinate subsidiaries has decreased, so the overall performance is still in a loss state.