On September 27, there was a new development regarding the public recruitment of investors for the restructuring of Hozon New Energy Automotive Co., Ltd. (the parent company of Neta Auto). The administrator of Hozon New Energy released a statement revealing that, as of the deadline for submitting applications from potential restructuring investors, one investor had submitted the complete application materials and paid the required registration deposit of 50 million yuan. This news may indicate that Hozon New Energy, and its subsidiary Neta Auto, could soon have a “savior.”
According to the administrator’s announcement, the next step will be to skip further rounds of selection and move directly into the proposal negotiation stage. However, this potential restructuring investor must submit a legally compliant and practical written restructuring investment plan to be officially confirmed as the final restructuring investor. Based on this, the administrator will prepare a “Restructuring Plan Draft” and submit it for a vote at a creditors’ meeting.
According to the basic conditions for restructuring investors released earlier by the administrator of Hozon New Energy, investors need to meet requirements related to qualifications, industry background, financial strength, etc. In terms of industry background, the investor should have strong industrial layout and resource integration capabilities, be able to provide clear industry resource support, or have the ability to invest in, operate, or acquire companies of similar size, with operational experience and capabilities in the same or adjacent industries to Hozon New Energy. Investors with such experience will be given priority. In terms of financial strength, the investor should have sufficient funds, no outstanding major debts, and the investment funds must be legally compliant.
On June 30, the administrator of Hozon New Energy released a “Preliminary Recruitment Notice for Intended Investors” to speed up the company’s bankruptcy restructuring process, effectively activate assets, maximize the value of the debtor’s assets, and protect the legitimate rights and interests of all parties through a market-based and legal approach. On August 4, the administrator released another document setting the registration requirements, including a deposit of 50 million yuan (including the previously paid deposit). According to the Ali Assets website, by September 8, 76 potential investors had signed up for the pre-recruitment.
It’s worth noting that the administrator recently disclosed bankruptcy restructuring-related data. As of the end of August, Hozon New Energy and its related companies owed approximately 460 million yuan to over 5,000 employees for wages, economic compensation, etc. Financially, the debtor’s account had a balance of around 15.46 million yuan, including 420,000 yuan in acceptance margin and about 15 million yuan in bank deposits. The company also has accounts receivable of about 9.3 billion yuan.
Hozon New Energy was established in October 2014, with legal representative Fang Yunzhou and a registered capital of approximately 2.837 billion yuan. The company’s business scope includes the design, development, production, and sales of new energy vehicle complete vehicles and components, as well as related consulting services. The company is jointly owned by Nanning Minsheng New Energy Industry Investment Partnership (Limited Partnership), Beijing Huading New Power Equity Investment Fund (Limited Partnership), Yichun Jinhe Equity Investment Co., Ltd., and others. Neta Auto, the smart electric vehicle brand launched by Hozon New Energy, was introduced in June 2018 and initially gained a reputation in the domestic new energy vehicle market due to its competitive pricing. In 2022, Neta Auto ranked as the top-selling domestic new energy vehicle company with a sales figure of 152,100 vehicles. However, the advantage of price no longer stood out due to intense competition in the auto market, and Neta Auto’s sales began to decline in 2023, dropping to 127,500 units, a 16% year-on-year decrease. In 2024, the sales dropped sharply, with a total of only 64,500 vehicles sold.
The drop in sales led to an operational crisis for Neta Auto. Starting from the second half of 2024, the company faced production halts, wage arrears, layoffs, and other crises. By 2025, the situation had not improved. In May of this year, Hozon New Energy filed for bankruptcy. The arrival of a potential restructuring investor is undoubtedly a positive development for Neta Auto. However, the entire new energy vehicle industry is becoming increasingly competitive, and Neta Auto faces significant challenges in making a comeback to the mainstream market. The outlook remains uncertain.
