On June 30, the administrator of Hozon New Energy Automobile Co., Ltd. released a “Pre-Recruitment Announcement for Potential Investors,” announcing the pre-recruitment of interested investors from the public. The administrator stated that the move aims to accelerate the company’s bankruptcy restructuring process, revitalize its assets, maximize the value of the debtor’s estate, and protect the legitimate rights and interests of all parties, while allocating resources reasonably and identifying operational value through market-oriented and law-based measures.
The announcement disclosed Hozon New Energy’s property statement, preliminary investigation results, and requirements for potential investors. As of May 1, 2025, the company’s assets include fixed assets, machinery and equipment, intellectual property, and accounts receivable. Fixed assets comprise a 350-mu industrial plot in the Tongxiang Economic Development Zone, Zhejiang Province. Equipment assets include production lines, molds, tooling, transport vehicles, and laboratory equipment. Intellectual property covers self-developed software and the registered trademark “Nezha Auto.” External investments include production bases in Yichun (Jiangxi) and Nanning (Guangxi), as well as parts plants in Tongcheng, Fengtai, and Fengyang (Anhui). Overseas assets include CKD-mode factories in Thailand and Indonesia.
The administrator highlighted investment advantages, noting that Hozon’s production lines remain operational, retaining more than 400 employees including management and core technical staff, meaning production could resume quickly once external conditions are met. The “Nezha” brand achieved annual sales exceeding 150,000 units in 2022, providing a customer base. Interested investors must demonstrate legal qualification, industry background, and financial strength, with application materials due by 5:00 p.m. on July 30, 2025.
On June 12, Hozon was placed under bankruptcy review. That same day, Nezha Auto announced that employees were working from home, office access was disabled, and staff were required to obtain approval before removing personal belongings. A day earlier, videos circulated online showing Nezha employees protesting at the company’s Shanghai headquarters to demand unpaid wages. These events highlighted the company’s precarious situation.
Hozon’s difficulties have been mounting since last year, with frequent reports of cash shortages, unpaid wages, suspended production, and halted supplies. In December, founder Fang Yunzhu assumed the CEO role and proposed measures including globalization, an IPO push, and even a debt-to-equity swap in March to resolve supplier debts. However, results have been limited.
On June 25, China’s People’s Court Announcement Network revealed that Nanning Automotive Industry Group filed a lawsuit against Hozon and related companies over a sales contract dispute. Three subsidiaries—Zhonglian Tianxia Auto Sales, Nezha Hezhi (Shanghai) Auto Sales, and Nezha Auto Hong Kong Investment—were declared “missing,” with the court delivering notices by public announcement.
Currently, Nezha Auto faces a severe cash crunch, suspended factories, and slumping sales. Data shows only 487 new vehicles sold in January–February 2025. The pre-recruitment of investors reflects the company’s urgent search for a lifeline. Whether Nezha can find a “white knight” and achieve a turnaround remains uncertain.
