Mythology says Taiyi Zhenren reshaped Nezha's body using lotus roots. In reality, a company called "Taiyi Shenglian" is attempting to inject 3 billion yuan to "resurrect" Neta Auto.

On September 11, the fourth creditors' meeting for the bankruptcy reorganization case of Neta Auto's parent company, Hozon New Energy, was held online. The "Draft Plan of Reorganization" first disclosed the reorganization investor as Zhejiang Taiyi Shenglian Enterprise Management Partnership (Limited Partnership). Taiyi Shenglian plans to invest 3 billion yuan to acquire approximately 70.62% equity of Hozon New Energy, gaining operational control of the reorganized enterprise. Among this, 1.167 billion yuan will be used to repay related claims corresponding to assets to be retained and bankruptcy expenses, while the remaining 1.833 billion yuan will supplement working capital.

Business registration information shows that Taiyi Shenglian was registered and established in April 2026, formed by Zhejiang Shanzi Holdings Co., Ltd. and Zhejiang Shanzi Yuxu Technology Co., Ltd. in partnership. The former's actual controller is Ye Ji, Chairman of Shanzi Gaoke. Shanzi Gaoke has had a long-term layout in the vehicle production field: In 2023, it acquired Hebei Hongxing Motor to obtain passenger car production qualifications. In 2025, its subsidiary Shanzi Youqian collaborated with Tmall to launch its first model which has entered the engineering verification stage, with plans for mass production in the third quarter of 2026. During the public recruitment of reorganization investors for Hozon New Energy in December 2025, Shanzi Gaoke was the only interested investor to pay a 50 million yuan security deposit.

However, Shanzi Gaoke's own financial situation is not ample. In the first half of 2026, the company's operating revenue was 1.371 billion yuan, down 20.87% year-on-year; net profit attributable to parents was only 30.83 million yuan, down 85.69% year-on-year; and deducted non-recurring net profit loss was 349 million yuan. The registered capital of 3.001 billion yuan is still in subscribed status, and there are uncertainties regarding whether funds can arrive on schedule.

Debt is the most direct test. The "Draft Plan of Reorganization" shows that ordinary claims for Hozon New Energy are approximately 11.7 billion yuan, involving over 1,600 households; priority claims are approximately 2.2 billion yuan, involving 9 households. The repayment rate for ordinary claims below 800,000 yuan is approximately 12%, with only 10,000 yuan paid in the first 12 months, while the excess portion is converted into equity; priority claims only pay interest for the first three years, and principal repayment starts from the fourth year. Since 2017, Neta Auto has completed 10 rounds of financing, with a total financing amount of 22.844 billion yuan, but the gross margins from 2021 to 2023 were -34.4%, -22.5%, and -14.9% respectively, remaining in a loss state for a long time. At the time of bankruptcy reorganization, Hozon New Energy's net loss reached 18.3 billion yuan.

According to the "Three-Step Strategy" in the "Draft Plan of Reorganization", the first phase involves resuming production of the Neta X model, focusing on overseas markets with a target annual sales volume of 10,000 units; the second phase involves developing models adapted for regions such as Asia, Africa, and Latin America, with a target annual production of 300,000 units; the third phase aims to create global intelligent models, striving for an annual output value of 40 billion yuan and starting IPO preparation.

The time window for resuming production is very tight. Neta Auto halted production since November 2024, which has been nearly two years. According to relevant regulations from the Ministry of Industry and Information Technology, a production volume below 2,000 units for two consecutive years may result in being listed on the special publicity list. The situation in overseas markets is also not optimistic — in the first half of 2026, Neta Auto's cumulative sales in Thailand were only 365 units, and the Thailand Ministry of Finance had previously filed a lawsuit against it for failing to meet local production targets, seeking recovery of over 2 billion Thai Baht in subsidies.

Precedents are not distant. HiPhi Auto announced in 2025 that it received a 600 million USD investment from the Lebanese company EV Electra, but the funds never arrived, and the reorganization ultimately fell through.

According to Shanghai Securities News, some Neta Auto creditors stated that the probability of the reorganization plan passing is high, but whether Neta Auto can restart mass production depends on many factors such as paid-in capital arrival and capacity integration. The 3 billion yuan is a huge gap compared to the 13.9 billion yuan debt hole and the continuous capital investment required for vehicle manufacturing. Whether Neta can truly achieve rebirth, the answer is not in the draft, but in whether the money can arrive and whether it can smoothly return to the market.

In mythology, what saved Ne Zha was his master Taiyi Zhenren, who constructed his body using lotus roots. In reality, the investor saving Neta Auto has named themselves"Taiyi Shenglian". This appears quite dramatic and delivers an emotional impact.

On the morning of September 11, Neta Auto's parent company Hozon New Energy Co., Ltd. (hereinafter referred to as "Hozon New Energy") held its fourth creditors' meeting in bankruptcy reorganization via online format to vote on the "Restructuring Plan (Draft)". Zhejiang Taiyi Shenglian Enterprise Management Partnership (Limited Partnership) (hereinafter referred to as "Taiyi Shenglian"), as the restructuring investor, plans to invest 3 billion yuan for restructuring investment and obtain approximately 70.62% of Hozon New Energy's equity, mastering the operating control rights of the enterprise after restructuring.

According to the content of the "Restructuring Plan (Draft)", the 3 billion yuan that Taiyi Shenglian intends to invest will be used in two parts: 1.167 billion yuan will be used to repay relevant claims corresponding to assets to be retained and bankruptcy expenses; the remaining 1.833 billion yuan will be used to supplement Hozon New Energy's working capital, supporting its operation and development after restructuring.

It is understood that the ordinary claims in this Neta Auto restructuring amount to 11.7 billion yuan, involving over 1,600 households; priority claims amount to about 2.2 billion yuan, involving 9 households. Regarding repayment methods, for ordinary claims below 800,000 yuan, the repayment rate is about 12%, paying 10,000 yuan within the first 12 months, and paying the remaining approximately 80,000 yuan within two years, with excess amounts converted into equity; priority claim amounts remain unchanged, paying interest for the first three years and repaying principal starting from the fourth year.

In terms of asset disposal, the "Restructuring Plan (Draft)" also clearly states that this restructuring will retain core assets related to Neta X and Neta L, while equipment related to Neta S and Neta GT will be disposed of as non-core assets. Some media reports stated that Taiyi Shenglian's management team possesses automotive industry operation and bankruptcy restructuring experience and had managed the restructuring of listed companies in the parts industry.

The mastermind behind the Taiyi Shenglian company is actually Shanzi High-Tech, a company transformed from a traditional real estate enterprise to high-end manufacturing, which previously entered whole vehicle manufacturing by acquiring Hebei Hongxing Automobile Manufacturing Co., Ltd. and cooperating with the Harbin Municipal Government to establish Heilongjiang Yunfeng Automobile, but the automotive business progress was not smooth.

During Hozon New Energy's public recruitment for restructuring investors in August 2025, Shanzi High-Tech was the sole prospective investor and paid a security deposit of 50 million yuan. Taiyi Shenglian is indeed the entity specifically established by Shanzi High-Tech for this restructuring. Qichacha shows that this company was registered in April 2026, established as a partnership by Zhejiang Shanzi Holding Co., Ltd. and Zhejiang Shanzi Yuxu Technology Co., Ltd., with the actual controller being Ye Ji, chairman of Shanzi High-Tech, and registered capital of 3.001 billion yuan.

The "Restructuring Plan (Draft)" also planned a "Three-Step" strategy for Neta Auto:

Step 1: Restart Neta X model production, mainly targeting overseas markets, with a target annual sales volume of 10,000 units. Retaining production qualifications is the most critical task for Neta Auto at present. From November 2024 until now, Neta has not produced for two years. If production is lower than 2,000 vehicles for two consecutive years, it might be listed on the Ministry of Industry and Information Technology Special Publicity List. That is to say, Neta must achieve production resumption within the next 4 months. The Neta X proposed to restart production first is exactly the main model for Neta Auto's previous overseas expansion. The "Restructuring Plan (Draft)" discloses that the model has already received some intention orders.

Step 2: Develop adapted models for markets such as Asia, Africa, Latin America, with a target annual production of 300,000 units to further amplify overseas market advantages.

Step 3: Build global intelligent models, aiming for an annual output value of 40 billion yuan, and start IPO preparation work.

However, the "Restructuring Plan (Draft)" did not propose a clear timeline for the "Three-Step" strategy. Judging from the "Three-Step" strategy, Neta still chooses to break through through overseas markets. This is easy to understand, because the competition in the domestic market is no longer the same as before. Whether in brand reputation, technological reserves, or channel coverage, Neta no longer possesses competitiveness in China. However, overseas is not a blue ocean either. With the pressure on domestic market sales, domestic independent automakers are going overseas in batches, including Neta's previous overseas market Thailand, where EV competition is becoming increasingly intense. It is relatively difficult for Neta to break through with an old model.

Additionally, the draft also mentions that Neta Auto will rebuild confidence in upstream supply chain cooperation, restore official spare parts supply, fully restart after-sales maintenance and repair, and activate existing service networks. For the approximately 400,000 Neta car owners nationwide, this is the most practical positive information.

However, it needs to be noted that Taiyi Shenglian company's 3.001 billion yuan registered capital is currently in the subscribed state, not paid-in. Furthermore, the voting results of this "Restructuring Plan (Draft)" have not yet been released.

This means that before the money actually arrives, everything still remains uncertain. HiPhi Auto serves as a cautionary tale. After repeatedly being let down by the Saudi Investment Department and iAuto Group, in 2025, the Lebanese company EV Eletra and Neta's parent Human Horizons established Jiangsu HiPhi Auto Co., Ltd., announcing an investment of 600 million USD (including 100 million USD deposit). Just when the outside world thought the restructuring was stable, this money never arrived on time, eventually falling through, and HiPhi's revival ended with nothing.

Even if the 3 billion yuan arrives smoothly, only 1.833 billion yuan can truly be used for operational infusion. For car manufacturing, this is just a drop in the bucket. For example: NIO Chairman Li Bin raised the threshold for car manufacturing from 20 billion yuan to 40 billion yuan in 2021. In the first half of this year, only Leapmotor among the new forces achieved profitability. Li Auto, which was profitable first, had a net loss of 3.994 billion yuan in the first half of this year, Xpeng lost 3.12 billion yuan, and NIO lost 0.86 billion yuan. Even these top new forces are still struggling on the line of profit and loss, and Neta wants to stand firm, needing continuous capital infusion later.

Neta Auto's parent company Hozon New Energy's bankruptcy reorganization has made substantive progress. On September 11, the fourth creditors' meeting was held online, the restructuring investor Taiyi Shenglian plans to contribute 3 billion yuan, in exchange for about 70.62% equity of Hozon New Energy. Of this amount, 1.167 billion is used to pay off debts, and 1.833 billion is kept as working capital. The first thing after restructuring is to resume production of the Neta X, focusing on the overseas market, with a first-stage target of 10,000 units. From the sales champion of new EV startups with annual sales of 150,000 to bankruptcy reorganization, Neta took less than four years. Whether 3 billion can truly bring it back to life is worth a calm look.

Who is the Investor

This company named Taiyi Shenglian sounds quite suitable for Neta, but it is actually a subject specifically established for this restructuring. Public information shows Taiyi Shenglian was registered in April 2026, jointly established by Zhejiang Shanzi Holdings and Zhejiang Shanzi Yuxu Technology, the actual controller is Ye Ji, Chairman of Shanzi High-Tech. As early as August 2025 when Hozon New Energy recruited restructuring investors, Shanzi High-Tech was the only prospective investor, later Taiyi Shenglian replaced Shanzi High-Tech to participate in the restructuring investment, with relevant rights and obligations transferred together. Taiyi Shenglian's management team is said to have bankruptcy restructuring experience, having previously led the restructuring of listed companies in the parts industry.

How the 3 Billion is Spent

According to the arrangement of the restructuring draft, the 3 billion yuan was split into two parts. 1.167 billion yuan is used to settle claims corresponding to assets to be retained and bankruptcy expenses, essentially plugging holes in historical debts. The remaining 1.833 billion yuan is injected as working capital into Hozon New Energy to restore production, restart the supply chain, and maintain daily operations. The investor takes 70.62% equity and obtains operational control.

One reality needs to be seen clearly: 3 billion sounds like a lot, but Neta Auto's debt scale far exceeds this number. As of March 2025, the company owed over 6 billion yuan in payments to 134 core suppliers, total liabilities approaching 10 billion yuan, and cash on hand was only 320 million yuan. For the huge debt portfolio, the debt repayment fund of 1.167 billion can cover a quite limited proportion. Whether the restructuring plan can pass smoothly at the creditors' meeting is the first hurdle.

Resuming Neta X Production, Focusing on Overseas Markets

The primary task after restructuring is to bring the Neta X off the production line again. This compact SUV was previously the absolute main force for Neta's overseas expansion. After listing overseas in July 2024, orders exceeded 7,000 units, taking the number one spot in pure electric SUV registrations in the Thai market for two consecutive months. Currently, Neta X has already secured some intent orders. The first-phase sales target after resuming production is set at 10,000 units, mainly targeting the overseas market.

In addition to resuming vehicle production, the plan also mentions repairing cooperative relationships with upstream suppliers, restoring parts supply, revitalizing the original offline service network, and providing maintenance services to existing car owners. This point is the most tangible commitment for the existing 400,000 car owners. After Neta Auto's financial crisis hit, a large number of car owners faced the dilemma of after-sales supply interruption. Whether the service system can be rebuilt again explains the issue better than how many new cars are sold.

According to the plan, subsequent stages will develop adapted models for the Asia, Africa, and Latin America markets, with an annual production target of 300,000 units. The long-term plan aims to surge to 40 billion yuan annual output value and initiate an IPO. This blueprint spans a considerable distance, but starting from the first step of resuming production of 10,000 units, the gap in between needs to be filled step by step.

Conclusion

Neta Auto's restructuring this time is essentially using 3 billion to exchange for a chance to start over. Neta X indeed has a foundation overseas. Thailand registration data, sales networks in 7 countries, over 7,000 historical orders, these are all real assets. But it must also be seen that Neta Auto went from sales champion in 2022 to production halt in 2024. The collapse speed was rare among new EV startups. Cumulative losses over three years were 18.3 billion yuan, averaging a loss of over 80,000 yuan per car sold. The root of the problem is not just in the channels or product rhythm, but the entire business model did not work from the beginning.

The money from Taiyi Shenglian solves the problem of "surviving", not "thriving". Facing nearly 10 billion yuan in debt, the 1.167 billion debt repayment fund can actually leverage limited creditor confidence. Resuming Neta X production to fight the overseas market, the direction is correct, but the competitive landscape of the overseas market is already completely different from 2024. Chinese brands' layout in Southeast Asia is getting denser, and it is not easy for Neta to regrab market share. Whether this restructuring succeeds, short-term looks at the voting result of the creditors' meeting, medium-term looks at the actual delivery volume after Neta X resuming production, long-term looks at whether the new investor is willing to continue investing in R&D and quality control. 3 billion is just an entry ticket, the road ahead is still very long.