Despite these significant challenges, Neta Auto still has a glimmer of hope.
On the morning of September 12, the first creditors’ meeting for the bankruptcy restructuring case of Hezhong New Energy Automobile Co., Ltd. was held online.
The administrator disclosed that as of August 31, a total of 1,631 creditors (of Hezhong New Energy) had filed claims with the court, with the total amount of claims filed exceeding 26 billion yuan. Among these, 1,340 claims have been reviewed and confirmed so far, with a total confirmed amount of approximately 5.1 billion yuan.
In addition to the above creditors, as of the end of August 2025, Hezhong New Energy and its affiliated companies still owe approximately 5,000 employees a total of about 460 million yuan in unpaid wages, economic compensation, subsidies, benefits, reimbursements, and housing provident fund contributions.
The monetary funds balance in the debtor’s accounts is approximately 15.4591 million yuan, including about 420,000 yuan in acceptance guarantees and about 15 million yuan in bank deposits. Furthermore, Hezhong New Energy currently has accounts receivable of around 9.3 billion yuan.
It is reported that the administrator is taking emergency measures to maintain operations, including negotiating with suppliers to keep the vehicle infotainment service system running and implementing a wage control plan.
The massive funding gap has plunged Neta Auto into an operational crisis, which directly affects its customer base.
In early September, several Neta Auto owners shared that they received text messages notifying them of an impending “internet disconnection crisis.” The messages stated that Lenovo Dongde (a subsidiary of Lenovo) refused to fulfill the “Telematics Service Agreement” reached with Neta Auto and would gradually cease providing telematics data services for Neta vehicles.
Additionally, the messages required users to bring their Neta Auto smart keys and purchase data plans for their vehicle infotainment systems themselves. This implies that the complimentary data services previously promised by Neta Auto may now be terminated.
More critically, many Neta Auto direct stores have closed nationwide, parts shortages are preventing repairs, insurance premiums have risen or even been denied, and used car prices have plummeted.
Despite these significant challenges, Neta Auto still has a glimmer of hope. The administrator stated that the overseas market is not only a key asset of Hezhong New Energy but also a major focus for some potential investors.
Neta Auto began its global expansion in 2022, establishing entities in Thailand, Indonesia, and other regions to conduct corresponding business. Currently, its overseas user base exceeds 25,000.
As of 5:00 PM on September 15, over 70 investors have registered to participate in the restructuring intention investment.
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