Nezha Automobile's former headquarters building
It took only three years for Nezha Auto to go from delivering 150,000 new cars in 2022 to becoming the "Annual Sales Champion of New Car Manufacturers" to suspending production and filing for bankruptcy in 2025. On May 13, Shanghai Yuxing Advertising Co., Ltd. filed for bankruptcy review against Nezha Auto's parent company, Hozon New Energy, claiming that Nezha Auto owed it 5.31 million yuan in advertising service fees.
One month later, on the evening of June 12, a "Nezha Automobile Reorganization Statement" began to spread on the Internet. According to multiple media reports, the relevant person in charge of Nezha Automobile responded that this content was not officially released, "I don't know who spread this content. It is just one of the disposal plans formulated by the company, not the final plan to be announced." After multiple investigations, the reporter found that this statement was not released in China, but a restructuring statement in three languages (Chinese, English and Thai) released by Nezha Automobile (Thailand) Co., Ltd. on Thai social media.
Nezha Automobile (Thailand) Co., Ltd. released a "reorganization statement" on social media
The statement said that the restructuring was an active self-rescue action led by the government under the supervision of the Jiaxing Intermediate People's Court of Zhejiang Province. It aimed to resolve the debt crisis through legal procedures, introduce strategic investment, optimize the management system, and open up new paths for the sustainable development of the company.
Original text of Nezha Auto's restructuring statement
In the statement, Nezha Auto also promised to jointly invest with leading domestic and foreign industrial capital, optimize and reorganize the original management team, and promised to continue operating domestic and foreign businesses. Production bases such as Tongxiang will gradually resume work within a few months. After-sales support, OTA upgrades and accessories supply will be prioritized, and overseas business will not be affected. Major overseas markets such as Thailand, Indonesia, and Brazil will continue to be development priorities.
According to the National Enterprise Bankruptcy and Reorganization Information Network, also on June 12, Zhejiang Zicheng Law Firm, with its registered address in Jiaxing City, became the bankruptcy administrator of Hozon New Energy Automobile Co., Ltd. (the parent company of Nezha Auto).
Related information about Nezha Automobile bankruptcy case
However, compared with the "solemn promise" in the statement, Nezha Auto's current situation can be described as "a mess".
Screenshot of the video of Nezha Auto employees defending their rights
On the evening of June 11, Nezha Auto employees surrounded the newly relocated office of Chairman and CEO Fang Yunzhou to demand their wages. Also on June 12, Nezha Auto announced internally that employees would work from home starting from June 12, the office access control had been invalidated, and employees were required to report to the relevant local departments and property management when moving their personal belongings. Fang Yunzhou himself had left the Shanghai headquarters and moved to Tongxiang, Zhejiang, the main production base of Nezha Auto.
An employee revealed that the access control system of the office at Nezha Auto's new headquarters has been invalidated
According to Tianyancha data, as of June 12, 2025, Nezha Auto has been involved in 469 cases as a defendant, involving a total amount of 228 million yuan; there are 103 pieces of information on persons subject to execution, with a total amount of 158 million yuan; and the chairman Fang Yunzhou's shares in Hozon New Energy, totaling about 45.86 million yuan, have been frozen. On May 23, the Jiaxing Intermediate People's Court issued the "Inquiry Letter on the Appointment of Administrators in the Competition Method for the Bankruptcy and Reorganization Case of Hozon New Energy Automobile Co., Ltd." The document disclosed that Nezha Auto has a total of 21.366 billion yuan in assets, 18.435 billion yuan in liabilities, and 2.931 billion yuan in net assets.
In terms of finance, according to the prospectus submitted by Nezha Auto to the Hong Kong Stock Exchange on June 26, 2024, the company's losses in 2021-2023 were approximately 4.84 billion yuan, 6.666 billion yuan and 6.867 billion yuan, respectively. The cumulative losses in three years exceeded 18 billion yuan, and the gross profit margin continued to be negative.
Since October 2024, the Tongxiang plant, the main production base of Nezha Automobile, has basically been shut down. Negative news such as large-scale layoffs, salary cuts, and arrears of payments to suppliers have also followed.
Faced with difficulties, Nezha Auto is also trying to save itself. On March 19, 2025, it held a supplier conference at its Shanghai headquarters and proposed a "debt-to-equity" debt reduction plan. On March 25, Nezha Auto announced that it had reached a consensus with 134 core suppliers and jointly signed a debt-to-equity swap agreement of more than 2 billion yuan. According to the agreement, 70% of the suppliers' claims will be converted into equity at the level of Nezha Auto's parent company Hozon Auto, and the remaining 30% of the claims will be repaid in cash in installments as interest-free debt; the claims will be divided into 15 installments on average, and will be repaid at a monthly payment schedule starting in May 2025.
However, at the end of May, some media reported that Nezha's debt-to-equity swap plan had failed. The reason was that the supplier could only help Nezha resolve 2 billion yuan of debt, while the bottom line of the capital side was 3 billion yuan.
It has been reported that Nezha Auto currently owes its employees approximately 300 million yuan in wages. Although Fang Yunzhou previously confirmed that employees' wage claims are priority claims in bankruptcy reorganization and the company will actively communicate with the bankruptcy administrator to ensure that employees' rights and interests are protected, for those Nezha Auto employees who have been owed wages for several months, the prospects for protecting their rights and interests are still full of uncertainty.
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