September 12 — Over 100 days after declaring bankruptcy restructuring, Neta Auto’s parent company, Hozon New Energy Automobile Co., Ltd., held its first creditors’ meeting online.
According to reports, the court-appointed administrator disclosed updates on the ongoing restructuring and related financial data. As of August 31, a total of 1,631 creditors had filed claims against Hozon New Energy, with total declared debt exceeding $37 billion. Of these, 1,340 claims have been reviewed and confirmed, amounting to approximately $7.25 billion.
In addition to these debts, as of the end of August 2025, Hozon and its affiliates still owed wages, severance, subsidies, reimbursements, and housing fund contributions to more than 5,000 employees, totaling around $653 million.
The administrator further revealed that the debtor’s cash balance stood at only $2.2 million, including about $60,000 in margin deposits and roughly $2.1 million in bank deposits. Meanwhile, Hozon still holds about $13.2 billion in accounts receivable.
The administrator emphasized that Neta’s over 400,000 car owners are the cornerstone of its brand value. If the company ceases operations, these owners’ needs cannot be met, and their rights will be difficult to guarantee. This could quickly spread negative sentiment, eroding the brand reputation accumulated over years and undermining market competitiveness.
According to Alibaba’s asset auction platform, Hozon New Energy has opened a pre-recruitment channel for restructuring investors. Since July 10, 2025, potential strategic investors have been able to submit preliminary applications through the platform.
As of May 1, 2025, Hozon’s assets mainly consist of fixed assets, machinery and equipment, intellectual property, and accounts receivable:
- Fixed assets: 350 acres of industrial land in Tongxiang Economic Development Zone, Zhejiang Province.
- Machinery and equipment: production line integration systems, molds, tooling, transport vehicles, and testing equipment.
- Intellectual property: proprietary software products and the registered trademark “Neta Auto.”
The pre-recruitment phase for restructuring investors attracted more than 70 applicants. Meanwhile, many Neta car owners reported this month that they had received text messages from “Hozon Auto.” The messages claimed that Lenovo Smart Service would stop fulfilling its connected car service agreements with Neta and gradually suspend data services, requiring users to bring their smart keys and purchase their own mobile data for the vehicle systems.
In response, on September 11, the administrator issued a “Notice on Suspension of Neta Auto Connected Car Services”, stating it would continue to communicate with Lenovo Smart Service and reserved the right to pursue legal action.