Neta Auto might really be "resurrected".

The funniest part is, the company coming to save it is named Taiyi Shenglian.

Seeing this, I guess many people's first reaction is similar to mine: Did they come up with this name on the spot?

Turns out, it really is the case.

Taiyi Shenglian was established in April this year, specifically as the entity for this restructuring. Now it is prepared to pay 3 billion yuan to acquire approximately 70.62% of the equity of Neta Auto's parent company, Hozon New Energy. In mythology, Taiyi Zhenren used a lotus to reshape Nezha's body, and by 2026, the capital market actually reenacted this story.

I can only say, after so many years of marketing in the auto industry, the most effective wave of communication this time was completed by the Industry and Commerce Bureau.

But after playing this gimmick, I am still quite curious, why is there still someone willing to spend 3 billion to save Nezha at this time?

A few years ago, if someone invested 3 billion into a new energy vehicle company, it seemed nothing strange. But by today, the market is completely different.

Is China still lacking in automobile brands?

Everyone just open the sales list and scroll down; BYD, Geely Galaxy, Leapmotor, Changan Qiyuan, Chery, Aion, plus a bunch of brands still struggling to squeeze onto the table. 100,000, 150,000, 200,000, every price bracket is almost full.

And at this time, someone returns holding 3 billion yuan to pull a Neta that has been halted for a long time back up.

I can only say, friend, your head is really stubborn.

After all, one of the topics discussed most in the industry has long changed from "Who can still enter" to "How many more need to be eliminated".

So let's first see how this 3 billion yuan plans to be spent.

According to the currently disclosed restructuring draft, Taiyi Shenglian will contribute 3 billion yuan. Approximately 1.167 billion yuan will be used to clear related creditors and pay bankruptcy expenses. The amount that can truly be injected into the company to support production resumption and operations is about 1.833 billion yuan. Taiyi Shenglian will eventually acquire approximately 70.62% of Hozon New Energy's equity.

So everyone, don't be stunned by the number "3 billion to resurrect Nezha". The money truly available to start working again is just over 1.8 billion.

Is 1.8 billion a lot? If I put it in my bank card, it's enough for me to research how to spend it for a lifetime. But in an auto company, you have to restrain yourself a bit.

It is precisely because of this, when I saw the first phase of this restructuring plan, I actually felt they were still taking it easy this time.

First, resume production of Nezha X, mainly for overseas markets, with an annual sales target of 10,000 units, and simultaneously restore official spare parts, maintenance, repair, and existing service networks.

Especially when seeing "10,000 units", I even felt a bit relieved, finally no one is shouting for tens or hundreds of thousands of sales at the very start.

The thing Neta is currently most anxious about might not even be reaching "returning to mainstream new energy brands" on such a grand scale. First, get the factory turning again, call back suppliers, and ensure owners of old cars with broken cars have someone to repair them. If these few things can be done smoothly, that counts as taking a big step forward.

Actually, the old owner part is also easily overlooked by everyone.

After a car brand collapses, the awkward ones are never the onlookers. Onlookers at most contribute one sentence: "I told you so."

The ones with real headaches are those who have already handed over over 100,000 yuan. Who will repair my car? Are there still spare parts? If problems arise, can I still find the manufacturer?

So this time, the restructuring plan puts resuming after-sales service and official spare parts supply in the first phase. I think this order is at least correct.

After all, if you want to sell cars again, you first have to ensure those who have already bought your car aren't that panicked.

But speaking of this, problems arise. What does Neta have left that is worth someone spending 3 billion to take over?

If we talk only about the four words "Neta Auto", I think everyone should not think it is too valuable first.

Neta has indeed been spectacular before. In 2022, sales exceeded 150,000 units and it took the number one annual sales spot among new forces. But automobiles are quite cruel; after brand voice drops, consumer memory refreshes particularly fast.

If you were sales champion two or three years ago, today if a Neta X is set up again in a shopping mall, consumers might still first ask a question: "Has their business returned to normal?"

This sentence hurts quite a bit. Because many auto companies can recover production capacity with money. But brand credibility drops, and picking it back up is not that simple, especially for big-ticket items like cars that people prepare to use for many years.

So the valuable things Neta still has, I think, need to be looked at behind the brand. Including factory, production lines, molds, R&D systems, supply chain relationships, complete vehicle manufacturing capabilities, and overseas systems built up in the past. These things might be more interesting to investors than the name "Neta" itself.

Especially do not forget who is behind Taiyi Shenglian.

Although Taiyi Shenglian is the investment entity established specifically this time, several layers of equity and personnel relationships point to the Shanzi High-Tech system. Shanzi High-Tech's current main business already includes automotive parts and complete vehicles two major sectors. Under it there is also the Belgian Punch (making powertrains), and the American ARC (making airbag gas generators).

Moreover, in these years, Shanzi High-Tech has never given up on moving towards complete vehicles.

It previously acquired Red Star Auto, did complete vehicle factory revitalization, and now there is also the Shanzi Youqian complete vehicle business under it. Zhu Renjie, who is in charge of Shanzi Youqian, previously worked at Tesla as Director of Manufacturing Engineering and participated in the formation of the Shanghai Gigafactory body manufacturing team.

Putting this string of things together, the matter roughly makes sense.

Neta lacks money, Shanzi High-Tech lacks a "ready-made complete vehicle company".

Shanzi High-Tech has parts, manufacturing experience, and some overseas resources, but from "I can make things for others" to "I can make a complete vehicle and sell it", there is still a fairly wide gap in between.

R&D systems need to be built, supply chains need to be built, production, certification, sales, after-sales all need to be built. If truly starting from zero, money aside, time alone would be enough to drink a pot of tea (quite a long time).

Neta just happens to have basically walked through these things already. Even if now many links are already broken, it at least once reached annual sales of 150,000, has products truly mass-produced, has a supply chain, has a factory, and has sold cars overseas.

So standing from Shanzi High-Tech's angle, spending 3 billion to save a laggard new force sounds quite adventurous.

But if it is spending 3 billion to acquire an automobile company that already possesses complete vehicle R&D, production, supply chain, overseas business, and "dual qualification" foundation, then stuffing their parts, manufacturing, and overseas resources into it, suddenly does it not seem so ridiculous?

Especially previously, when Hozon New Energy was seeking a management trustee, they specifically mentioned maintaining "automotive manufacturing dual qualifications", and later the Shanzi system also established a complete vehicle sales related company in Tongxiang.

This basically already has their thoughts written on their face. What they truly value is never just the Neta brand, more still the complete vehicle manufacturing, sales, and overseas business foundation that Neta has already set up.

One lacks money, one lacks a complete vehicle platform. Looking at it this way, Taiyi Shenglian "saving Nezha" slowly returns from mythological stories back to business.

And I think, this matter is quite representative of a certain way of playing in the automobile industry in the future.

In the past when capital had money, everyone was from zero starting to build a new brand with dozens or hundreds of billions.

Now the first elimination round has come to this, many brands might not be able to survive, but factories remain, equipment remains, supply chains remain, R&D systems have a little left.

So a failed automobile brand, at its cheapest time, might actually be when the set of vehicle manufacturing capabilities it left behind is most attractive.

Neta this time is roughly in this situation.

This also explains why the first step of the restructuring plan did not urgently focus on redriving the domestic market, but placed hope overseas.

Neta has already fallen behind domestically, but overseas has left a little foundation. In the first half of 2024, overseas deliveries exceeded 17,000 units. Thailand, Indonesia also had plans for local production, and Nezha X itself already has an overseas sales foundation.

Now taking over 1.8 billion plus to return and charge into this fiercely competitive domestic market, I am nervous for this money.

First, pick up the overseas business that has run through once, let factories, supply chains, and cash flow turn again. At least it is much more reliable than coming back to hard fight domestically.

So, back to the very beginning question. There are already so many Chinese automobile brands, is it necessary to spend money to resurrect Neta?

If it is just pulling Neta back to the domestic market, continuing to compete with Leapmotor, BYD, Changan, Geely in the 100,000 to several hundred thousand yuan new energy vehicle market, I think the meaning is indeed not great.

But first, restart Neta's overseas product lines as a敲门砖 (敲门砖 translates to "door-knob" i.e., entry tool) to open the overseas market, this business still has some chew.

As for whether this brand will have a chance in the future to ride the wind and fire wheels and kill back to the domestic market...

First see if Taiyi Shenglian can revitalize itself first.