Whether JIYUE can successfully secure new capital hinges on its ability to properly resolve the debt issue and rebuild market confidence.
The bankruptcy restructuring process for JIYUE Auto has reached a critical juncture.
According to Chinese media reports, the company’s former CEO, Xia Yiping, is leading efforts to introduce new strategic investors from the Middle East to advance the pre-restructuring work. Meanwhile, Baidu, one of the company’s primary initiators, has clearly expressed its intention to exit completely during this restructuring round.
As early as November 25, Shanghai Jidu Automotive Co., Ltd., an affiliated company of JIYUE, officially announced the commencement of pre-restructuring proceedings. The company submitted an application to the Shanghai Third Intermediate People’s Court, which was formally accepted on November 21.
According to the announcement, this pre-restructuring aims to introduce new strategic investors, revitalize existing assets and resources, preserve asset value, and safeguard users’ after-sales rights and interests. The court has appointed Zhong Lun (Shanghai) Law Firm as the interim administrator to proceed with subsequent work in accordance with the law.
Informed sources reveal that Xia Yiping is no longer involved in JIYUE’s daily business operations. His focus has shifted to coordinating and negotiating with shareholders, creditors, and potential investors. The company retains only a small team to maintain “low-power operation,” focusing on software updates and after-sales services to ensure users’ basic rights and interests.
It is worth noting that business registration information shows that the main JIYUE entity has been renamed Zhejiang Fengsheng Automotive Technology Co., Ltd. and is wholly owned by Geely. This indicates that Baidu may have already exited as a shareholder.
The debt issue is the biggest challenge facing the restructuring.
According to media estimates, JIYUE’s total debt scale could be as high as 7 billion yuan. Geely and Baidu, as the largest creditors, hold a combined claim of approximately 72%—Geely primarily due to receivables from manufacturing services, and Baidu stemming from investments in intelligent technology cooperation.
However, with coordination from relevant departments, the two major shareholders have jointly resolved issues related to employee salary arrears and layoff compensation, and have paid a portion of the owed amounts to some suppliers.
Xia Yiping’s move to introduce Middle Eastern capital is seen as a final effort to salvage the JIYUE brand. Baidu’s desire to exit reflects its reassessment of strategic investments in smart vehicles. Previously, Baidu invested approximately 8 billion yuan in JIYUE (including Jidu), which ultimately resulted in total sales of only about 14,000 vehicles—averaging around 1,200 vehicles per month—failing to meet return-on-investment expectations.
Industry analysts believe that whether Jiyue can successfully attract new capital depends critically on its ability to properly resolve the debt issue and rebuild market confidence.
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