Neta Auto: Can 53 Bidders Save a Second-Tier Dream?

On August 4th, a "Public Announcement for the Recruitment of Restructuring Investors" once again put Neta Auto in the spotlight.

After the Jiaxing Intermediate People's Court ruled on June 12 to accept the bankruptcy restructuring of Hozon New Energy Automobile Co., Ltd. (Nezha Auto), the administrator has finally initiated the "matchmaking" process: publicly inviting investors for restructuring. The restructuring investors are not limited by industry but must have the ability for industrial integration or experience in investment and mergers. Additionally, a substantial entry threshold has been set—a registration deposit of 50 million yuan.

As of now, information from the Alibaba Auction platform shows that 53 interested applicants have expressed interest in Nezha Auto. This action, hailed as the "first large-scale public restructuring recruitment in the new energy vehicle sector," is destined to be more than just an ordinary debt restructuring.

Of the 53 people, how many can stay? Is the 50 million threshold a signal of opportunity or a farewell ceremony? More importantly, can Nezha come back?

1. The 50 million yuan deposit is both a threshold and a sieve.

Unlike some companies that previously took the "low-threshold clearance sale" approach, Nezha's restructuring this time clearly sets higher standards for investors: there is no restriction on industry background, but emphasis is placed on the ability to provide resource support and experience matching business scale, and financial strength is clearly identified as the first step for entry.

The announcement stipulates that investors must submit application materials by September 15 and pay a deposit of 50 million yuan (including any previously paid intent money). This amount is significantly higher than the common level of 10 to 20 million yuan for some local state-owned capital or bankruptcy restructuring projects, sending a clear signal:

This is not a reckless gamble of profiteering, but a real and intense battle of capital.

This setting actually has a dual effect:

Identify potential buyers who are truly wealthy, and filter out second- and third-tier investors who are just "reserving a spot" or "watching and waiting."

Set the tone for Nezha itself: this reorganization is not a technical bankruptcy process, but an intentional restart and a self-reconstruction with industrial strategic significance.

2. Fifty-three Interested Parties: A Lively Card Table, Silent True Card Players

As shown on the Alibaba Auction page, as of the date of the announcement, 53 interested parties have registered, willing to provide funds for Nezha's "resumption of work and production." This number, in the context of the new energy market, is not uncommon, yet it is noteworthy.

However, it is worth noting that "intentional registration" does not equal final investment, especially with the high deposit threshold. It is likely that only a few will be able to complete the entire process of "fund custody, proposal submission, and manager selection."

From the perspective of process design, Nezha's restructuring this time has the following three characteristics:

1. Clear process: The role of the manager is defined, and the restructuring timetable is set for September 15th.

2. Clear standards: Priority will be given to those with industry synergy or equivalent operational experience.

3. Platform Disclosure: Disclose intention information to the public through the Alibaba Auction platform to ensure fairness and competition.

This type of arrangement implies that Nezha is more inclined to seek "industry-type investors" with long-term plans—which could be new energy vehicle companies, leading enterprises in the industry chain (such as battery manufacturers, mobility platforms, or vehicle OEMs), and may even include industry funds or state-owned platforms with local government backgrounds.

For the true successor, they are taking on assets, but also risk and confidence. In the bankruptcy process, Nezha needs not only money but also someone who can "bring resources, understand operations, and be willing to take action."

3. A Critical Moment for a Second-Tier Team: Restructuring as a Turnaround or a Lifeline?

Nezha's predicament is not accidental. Once upon a time, it was one of the few non-first-tier players among the "new forces in car manufacturing" to enter the mainstream view. Around 2022, Nezha's sales once surpassed Leapmotor and WM Motor, becoming a representative of "cost-effective smart cars."

Entering 2024, with tightened capital and accelerated cost reduction and efficiency improvement in the industry, Nezha began to fall behind, eventually reaching a critical point of high debt pressure and stalled financing.

Reorganization is not the endpoint, but rather a risky "survival by amputation," with its difficulty reflected in the following three aspects:

- Product line positioning is unclear: The price range of main models extensively overlaps with Xiaopeng, BYD, and Deep Blue, lacking differentiation.

Intelligent implementation gap: a generational difference compared to Huawei, Xiaomi, Xpeng, etc., in smart cockpit/intelligent driving configuration.

- Financing pace out of control: Failed to complete a new round of financing starting from the second half of 2023, leading to cash flow depletion.

The new energy sector is no longer a startup stage with "hundreds of cars launching together," but rather an elimination race where an oligopolistic structure is rapidly forming. To survive, Nezha must find a differentiated path and sustainable resources, which rely on the new investors brought in through restructuring—not only providing financial support but also contributing effort.

How do we see it?

From the announcement, Nezha Auto's restructuring is an experiment combining institutional and market-oriented approaches: it ensures the quality of the plan with high thresholds, enhances transparency through a platform approach, and seeks strategic investors with "strong operations + strong synergy" while maintaining fairness.

Among the 53 interested parties, who will make it to the end and who is willing to take on the responsibility of restructuring the company's organization, team, and product strategy will determine the outcome of this reorganization—whether it will be a "turnaround" or a "liquidation."

Perhaps the real major players have not yet revealed their cards, but Nezha's restructuring timetable is already on the table, leaving a short window for observers.