Neta Auto has reportedly resumed full salary payments at its Tongxiang factory in July 2025, signalling a potential step toward operational recovery amid ongoing bankruptcy restructuring. The move follows a period of financial difficulties that led to delayed wages and reduced operations.
According to a public notice released on August 4 by the administrator of Hozon New Energy, the parent company of Neta Auto, the firm is seeking strategic investors to participate in its restructuring process. The company previously opened a pre-registration channel on July 10 via Alibaba’s asset disposal platform to attract capital for the restructuring. Forty-seven entities have reportedly submitted expressions of interest. Interested parties are required to submit a deposit of 50 million yuan (approx. 6.9 million USD) by 5:00 p.m. on September 15, 2025.
Neta officially entered bankruptcy reorganisation proceedings in June 2025. This came after months of cash flow problems, unpaid employee wages dating back to November 2024, and large-scale layoffs that reduced its workforce by nearly half. A video that circulated online in early June showed employees confronting company Chairman Fang Yunzhou at the company’s Shanghai office, demanding overdue payments.
Following these developments, Neta Auto has reportedly reinstated full wages at its central Tongxiang manufacturing facility. Before this, some employees received only minimum wages slightly above 2,000 yuan or partial payments. The company has also begun efforts to reactivate its sales and service network, providing materials and financial support to outlets that remain willing to collaborate.
Despite these efforts, staffing levels at the Tongxiang plant remain limited due to previous layoffs. Remaining employees are reportedly engaged in cleaning the facility, organising supplies, and testing equipment in preparation for a possible production restart.
Neta Auto has faced significant operational challenges in recent years. Its annual vehicle sales declined sharply from 152,000 units in 2022 to 64,549 units in 2024. Production was suspended after major suppliers, including battery manufacturer CATL, stopped deliveries due to unpaid debts. Reportedly, unpaid supplier debts exceed 6 billion yuan (approx. 833 million USD), while cumulative losses have surpassed 18.3 billion yuan (approx. 2.5 billion USD). Court records from March 2025 indicate that affiliated company accounts held less than 500 yuan (approx. 69.33 USD) combined, highlighting the severity of the cash shortage.
Tensions have also arisen within the company’s ownership structure. Several state-owned shareholders of Hozon New Energy have reportedly advocated for structural reforms, including leadership changes, expressing concern about the company’s debt ratio of over 217% and previous expansion strategies.
As of May 1, 2025, Hozon’s asset portfolio includes approximately 233,345 square meters of industrial land in Tongxiang, Zhejiang, along with integrated production equipment, moulds, transport tools, and testing devices. It also holds proprietary software and the registered “Neta Auto” trademark. The company has invested in two vehicle production bases in Yichun (Jiangxi) and Nanning (Guangxi), and operates three component factories in Tongcheng, Fengtai, and Fengyang (Anhui). Internationally, it runs CKD-mode plants in Bangkok and Jakarta, with the Thai facility entering operation in 2024.
In June 2025, Neta removed signage from its Shanghai headquarters after the lease expired, but the company has not disclosed a new office location.
Neta Auto’s current activities in Tongxiang are considered an initial phase in recovery efforts. The company’s future depends on successful restructuring, additional investment, and potential governance changes.
Updated: 05/08/2025 China Time: 4:30am
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