Recent filings on China’s National Enterprise Bankruptcy Information Disclosure Platform (NEBIDP) reveal that Hozon New Energy Automobile Co., Ltd., the parent company of Neta Auto, has been subjected to a bankruptcy review case initiated by Shanghai Yuxing Advertising Co., Ltd.
According to Tianyancha data, as of May 2025, Hozon New Energy has been involved in over 400 judicial cases, with cumulative enforcement claims exceeding 144 million yuan ($20.06 million). The company also has over 90 enforcement records and faces 249 internal risk alerts, 2,399 peripheral risk alerts, and multiple tax delinquency notices totaling 2.15 million yuan ($299,443) in unpaid taxes. Legal representative Fang Yunzhou has been restricted from high-consumption activities eight times due to unpaid obligations in labor dispute cases. The company’s equity freeze records amount to 95 entries, with frozen assets exceeding 2 billion yuan ($278.55 million).
Sales figures show that Neta Auto delivered 127,500 vehicles in 2023, marking a 16% year-on-year decline. By 2024, sales further dropped to 64,500 units. In January 2025, domestic deliveries plummeted to just 110 vehicles, with first-quarter sales crashing to 487 units.
IPO filings reveal that Hozon New Energy reported net losses of 4.84 billion yuan ($674.09 million), 6.666 billion yuan ($928.27 million), and 6.867 billion yuan ($956.41 million) from 2021 to 2023, respectively, accumulating over 18.3 billion yuan ($2.55 billion) in losses over three years. Based on 2023 deliveries, Neta Auto lost 55,000 yuan ($7,660) per vehicle sold. Gross margins remained dismal at -14.9% in 2023, far below rivals like Leapmotor and NIO. As of April 2024, the company’s cash reserves stood at 403 million yuan ($56.13 million), with a liquidity shortfall of 1.8 billion yuan ($250.70 million).
A pivotal setback occurred in June 2024 when its Hong Kong IPO failed, despite raising 22.8 billion yuan ($3.18 billion) in prior funding rounds. Neta Auto has faced with the collapse of a 3-billion-yuan ($417.83 million) Series E financing round and dealer debt disputes. In addition, key suppliers like Eve Energy suing over unpaid bills, leading to parts supply cutoffs. To alleviate pressure, Neta Auto proposed converting 70% of supplier debts into equities, but the “debt-to-equity” plan has faced widespread resistance.
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[…] According to the National Enterprise Bankruptcy Information Disclosure Platform (NEBIDP), a new bankruptcy case was filed on June 19 against Neta Auto’s parent company Hozon New Energy Automobile Co., Ltd. The appointed administrator is Zicheng Law Firm (Zhejiang), and the court handling the case is Jiaxing Intermediate People’s Court in Zhejiang Province. Previously, applicant Shanghai Yuxing Advertising Co., Ltd. had already filed for bankruptcy revie… […]