Taiyi Shanglian to Acquire 70.6% of Bankrupt Neta Auto for CNY 3 Billion

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Summary · why it matters

Zhejiang Taiyi Shanglian Enterprise Management Partnership is set to acquire a 70.6% stake in Hozon New Energy Automobile Company, the bankrupt parent of Chinese battery electric vehicle start-up Neta Auto, for CNY 3 billion, or US$ 447 million. Taiyi Shanglian is a management company established earlier this year by Zhejiang Shanzi Holdings Company and Zhejiang Shanzi Yuxu Technology Company. A fourth Hozon creditors meeting held online on 11 September produced a new Draft Reorganization Plan under which CNY 1.17 billion of the restructuring fund will cover legacy debt, including paying off creditors of retained assets, bankruptcy expenses and other restructuring costs, while the remaining CNY 1.83 billion will be injected into Hozon as working capital to restart production and sales, rebuild supply chains and restore after-sales networks. Equipment for the Neta L and Neta X SUVs is to be retained as core operating assets, while equipment for the Neta S and GT sedans is classified as non-core and may be disposed of separately. The draft sets out a three-stage recovery plan: a first-year sales target of 10,000 vehicles starting with Neta X production and addressing warranty claims of the existing 400,000 Neta owners, then scaling to an annual output of 300,000 vehicles with models tailored for emerging markets in Asia, Africa and Latin America, and finally developing global intelligent electric vehicle models, reaching an annual output value of CNY 40 billion and preparing for an initial public offering.

Impact on stocks 0

Theme Impact 2

Off-coverage companies 3

Neta Auto (Hozon New Energy Automobile)Private▲ Positive
Capitalrelevance

Taiyi Shanglian to acquire 70.6% of bankrupt Hozon/Neta for CNY 3 billion, with CNY 1.83 billion injected as working capital to restart production and sales.

浙江山子宇旭科技有限公司 (Zhejiang Shanzi Yuxu Technology Co., Ltd.)Private± Mixed
Capitalrelevance

Zhejiang Shanzi Yuxu Technology is a co-founder of the acquiring entity Taiyi Shanglian, but the article gives no detail on its own impact.

浙江山子控股有限公司Private± Mixed
Capitalrelevance

Zhejiang Shanzi Holdings is a co-founder of the acquiring entity Taiyi Shanglian, but the article gives no detail on its own impact.

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