In a competitive market for new energy vehicles in mainland China, the car company “Zerouno Motors” has secured the top spot in sales for six consecutive months. However, a recent turn of events has seen the company go from losses to profits, only to find themselves listed as a “discredited person subject to enforcement” by the court for failing to comply with a court judgment to repay overdue debts. This has resulted in restrictions on high consumption for the company’s CEO and legal representative.
The refusal to repay debts despite profitability has become a surprising headline in today’s news. Industry insiders speculate that this incident may have a negative impact on Zerouno Motors’ brand image and external partnerships, particularly in terms of supply chain cooperation and financing.
According to reports from Sina and Netease in mainland China on September 26, 2025, Zerouno Technology Co., Ltd. in Zhejiang was listed as a discredited person subject to enforcement by the Baiyun District Court in Guangzhou. Zerouno Motors’ CEO, Zhu Jiangming, and the company’s legal representative, Bai Wei, have been restricted from high consumption.
The legal document in effect indicates that Zerouno Motors and its wholly-owned subsidiary, Zerouno Motors Trading Co., Ltd., have failed to comply with a court judgment to repay a debt of 3.6181 million yuan to Guangzhou Shouqi Automobile Service Co., Ltd. The court enforced the judgment as Zerouno Motors, despite being capable, neglected its debt repayment obligation. The company was previously classified as a discredited person subject to enforcement by the court in June due to this matter, resulting in restrictions on high consumption for individuals associated with the company.
As reported by Tencent previously, Zerouno Technology Co., Ltd. in Zhejiang was once on the periphery of China’s electric vehicle industry. However, this year, both its sales revenue and stock prices have surpassed all its startup competitors.
Zerouno Motors, listed on the Hong Kong stock market, has seen its stock double since January, outperforming well-known counterparts such as Xiaopeng Motors and Xiaomi Group. Compared to its low point in August of last year, the stock has surged by over 200%. Founded a decade ago, Zerouno Motors has attracted investors’ attention with its competitive pricing strategy, mainly through large-scale production of components.
Established in Hangzhou in 2015 by Zhu Jiangming and co-founder Fu Liquan, Zerouno Motors initially struggled, lagging far behind industry giants like BYD Co., Ltd., as well as early startup companies like Xiaopeng Motors and NIO.
However, by cutting costs and capturing market share with lower prices, the company witnessed its monthly deliveries exceeding 50,000 vehicles for the first time in July of this year. In August, the figure further surged to 57,000 vehicles, securing its position as the sales champion for six consecutive months, surpassing all its startup competitors. As of August this year, Zerouno Motors’ cumulative deliveries have exceeded 900,000 vehicles. On September 25, the company officially announced the production of its one millionth vehicle.
According to Zerouno Motors’ financial report, in the first half of 2025, the company achieved a revenue of 24.25 billion yuan, a 174% year-on-year increase. With a net profit of 0.3 billion yuan, this turnaround from a net loss of 2.21 billion yuan in the same period last year has positioned Zerouno Motors as a standout performer in the automotive industry in the first half of the year.
Despite its profitability, the company’s refusal to repay debts may have negative implications for Zerouno Motors’ brand image and external partnerships. According to the “Several Provisions on the Publication of Information of Discredited Persons Subject to Enforcement” issued by the Supreme People’s Court, companies listed as discredited persons will face restrictions in financing, government procurement, bidding, outbound travel, and high consumption. This suggests that the company’s supply chain cooperation and external financing capabilities may face setbacks.
Citigroup Securities pointed out in a previous research report that some new energy vehicle companies are facing tight financial chains and compliance risks during rapid expansion. Involvement in judicial enforcement or credit limitations could potentially impact market confidence and the selection of partners.