On September 12, the first creditors’ meeting for the bankruptcy reorganization case of Hozon New Energy Automobile Co., Ltd. (hereinafter referred to as “Hozon New Energy”), the parent company of Neta Auto, was held online. According to a report by Cailian Press, the administrator of Hozon New Energy disclosed that as of August 31, a total of 1,631 creditors (excluding employee claims) had declared their claims, with the total declared amount reaching CNY 26.58 billion (approx. USD 3.72 billion). Among them, the administrator has reviewed 1,340 claims and confirmed debts totaling CNY 5.18 billion (approx. USD 725 million).
In addition, the report pointed out that, apart from these creditors, as of the end of August, Hozon New Energy and its affiliated companies still owed more than 5,000 employees unpaid wages, severance payments, welfare subsidies, reimbursements, and housing fund contributions, totaling about CNY 460 million (approx. USD 64 million). Moreover, it was revealed that the balance of monetary funds in the debtor’s account was about CNY 15.4591 million (approx. USD 2.16 million), including an acceptance deposit of about CNY 420,000 (approx. USD 59,000) and bank deposits of around CNY 15 million (approx. USD 2.1 million).
It is understood that on May 13 this year, Hozon New Energy was petitioned for bankruptcy reorganization by Shanghai Yuxing Advertising Co., Ltd., with the case handled by the Intermediate People’s Court of Jiaxing City, Zhejiang Province. On June 19, an additional bankruptcy case was filed against Hozon New Energy by the same petitioner and the same court, with Zhejiang Zicheng Law Firm appointed as the administrator, led by principal person-in-charge Yao Wuqiang. Thus, the court officially confirmed the administrator for the bankruptcy reorganization case.
On June 30, in order to advance the restructuring process, the administrator issued a pre-recruitment announcement for potential investors, opening the process to the public. The recruitment period was set from July 10 to September 8. According to Alibaba Auction’s official website, as of September 8, more than 70 potential investors had signed up, with the final deadline for registration set at 5 p.m. on September 15.
Amid the bankruptcy reorganization turmoil, Neta Auto has remained in the industry spotlight. As the smart EV brand under Hozon New Energy, Neta Auto was launched in June 2018 and was once regarded as a “dark horse” in China’s new energy vehicle sector. It was also one of the first companies to obtain dual licenses for new energy passenger vehicle production. Unfortunately, due to financial difficulties, Neta Auto has faced a series of chain reactions, including factory shutdowns and delayed payments to suppliers.
On September 11, according to multiple media reports, many Neta car owners received disconnection messages from “Hozon Auto,” stating that Lenovo (Lenovo Communication) would refuse to honor its “Connected Car Service Agreement” with Neta Auto and would gradually suspend data services, requiring users to bring their smart keys and purchase connectivity packages on their own.
Regarding the sudden suspension of Neta Auto’s connected car services, both Lenovo Communication and the administrator of Neta Auto issued statements. Lenovo explained that Hozon Auto had long failed to pay service fees on time, and despite months of negotiation, no agreement was reached, creating major cost pressures and risks to service continuity. Based on the contract and relevant laws, all overdue vehicles would now be subject to disconnection. In response, the administrator of Hozon New Energy issued a “Statement on the Suspension of Neta Auto Connected Services,” noting that while they had been actively fulfilling installment payment agreements and service contracts with Lenovo the service provider unilaterally cut off connectivity without prior notice, causing inconvenience to car owners.
In fact, even before this “explosion,” many Neta Auto owners had already reported being disconnected, with issues such as in-car systems losing internet access, Bluetooth keys failing, app remote control malfunctioning, and navigation services breaking down. Judging from the latest responses, it appears that car owners must now purchase their own connectivity packages to restore service. Lenovo announced a “Connectivity Protection Plan for Neta Owners” to ensure continued data service, while Neta Auto urged owners to always carry their smart keys to avoid disruptions.
Once a hot rising brand in China’s EV industry, Neta Auto now has over 400,000 owners, with products such as the Neta L, Neta GT, Neta X, and Neta S, priced between CNY 80,000 and CNY 230,000 (approx. USD 11,200 – 32,200). Currently, Neta Auto is actively seeking self-rescue measures, but its path through bankruptcy restructuring remains uncertain.
