Nezha Auto Tongxiang Factory To Pay Full Salaries In July, Preparing For Full Resumption Of Production

According to reports on August 4, it is said that employees at Neta Auto’s Tongxiang factory received their full salary in July. Compared to the previous minimum basic salary of just over 2,000 yuan and salaries being halved, this full salary payment indicates that Neta Auto is resuming full-scale operations and production.

Currently, Nezha Auto has initiated efforts across major outlets to identify which ones are willing to continue serving Nezha. Nezha can provide materials and funding.

The current employees of Nezha are already cleaning the factory, organizing materials, testing equipment, and so on.

However, the parent company of Nezha Auto, Hozon New Energy Automobile Co., Ltd., is currently undergoing bankruptcy reorganization. The bankruptcy administrator has publicly solicited potential investors, and the good news is that more than 40 interested parties have already signed up.

Starting from the second half of 2024, it was reported that Hozon New Energy began to experience a financial crisis. Subsequently, production halts, wage arrears, layoffs, and stock freezes were successively exposed.

The financial data shows that from 2020 to 2023, the operating income of Hozon New Energy Vehicles was 1.297 billion RMB, 5.089 billion RMB, 13.05 billion RMB, and 13.555 billion RMB, respectively.

During the reporting period from 2020 to 2023, the company's net profits were -1.321 billion yuan, -4.84 billion yuan, -6.67 billion yuan, and -6.867 billion yuan, respectively, with a total loss of nearly 20 billion yuan over four years.

Whether Neta Auto can successfully obtain the "revival card" this time depends on whether the funds from subsequent investors are in place.