The Ningbo Intermediate People's Court has put up for auction 100% of the equity and assets of Lanzhou Zhidou Electric Vehicle Co., Ltd. (the 100% subsidiary of Zhidou Electric Vehicle Co., Ltd.). These properties include fixed assets such as land, production equipment, factory buildings as well as the production qualification of Lanzhou Zhidou. The sale is being carried out to meet payment obligations (in default) towards dozens of suppliers and service providers.
The court has set a reserve price of 138 million RMB and expects to net around 197 RMB million from the sale. The most coveted and prized asset is obviously the production license ("LZD") held by Lanzhou Zhidou itself. In recent times, some other car companies have been sold to start-ups at valuations of 650-800 million RMB.
Technically, this court-mandated auction should not affect production of Zhidou vehicles, under Geely's licenses ("JL", "SMA"), at other plants which do not come under the ambit of Lanzhou Zhidou, unless those are beset with financial problems too. Among licensed NEVs, Zhidou has manufactured only the D2S in 2019. Speculation is that the D3 design and rights may have been sold to Changan.