Hozon New Energy Automobile, the company behind China's Neta electric-car brand, has disclosed a draft restructuring plan that would put a new investor in control. The plan was presented at the fourth creditors' meeting, which was held online, and was reported by Chinese automotive outlet Gasgoo. Under the draft, Zhejiang Taiyi Shenglian Enterprise Management Partnership (LP) would invest 3 billion yuan (about $422.5 million) in exchange for about 70.62 percent of Hozon, giving the investor control of the restructured company. The plan still requires approval from creditors and a ruling from the court, so the outcome is not yet settled.
The proposed investment is split into two blocks. Some 1.167 billion yuan (about $164.4 million) is earmarked for debts against assets that will be kept, plus bankruptcy and restructuring costs. The remaining 1.833 billion yuan (about $258.2 million) will be working capital to restart production, rebuild the supply chain, repair the after-sales network and keep day-to-day operations running.
What the plan keeps and cuts
Hozon's product lines are treated differently in the plan. Production equipment for the Neta X and Neta L models is classified as core retained assets, while equipment for the Neta S and Neta GT is listed as non-core and will be disposed of separately. The restructured business will narrow its focus to SUVs.
Production would restart in stages. In the first phase, Hozon plans to bring back the Neta X mainly for overseas markets, targeting annual sales of 10,000 units. According to the administrator, some preliminary intention orders are already in hand, and the company would also resume parts supply and repair services for existing owners. In the second phase, new models would be developed for Asia, Africa and Latin America, with a target annual output of 300,000 units. The third phase calls for global models, an annual output value of 40 billion yuan (about $5.63 billion) and preparation for an initial public offering.
Investor and uncertainty
Zhejiang Taiyi Shenglian was registered in April 2026 and was created specifically for this restructuring, according to business registration information cited by Gasgoo. The partnership is linked to listed company Shanzi Hi-Tech and is led by the team of Shanzi Hi-Tech chairman Ye Ji. On September 14, Shanzi Hi-Tech shares hit the daily price limit, a sign that investors reacted strongly to the news.
If approved, the plan would leave Hozon under the control of a new owner and with a much narrower product plan. The export-first approach for the Neta X, followed by models built for emerging markets, suggests the company sees overseas sales, not domestic volume, as its main path to recovery.
Still, the plan is only a draft. It depends on a vote by creditors and approval by a court, and the final shape of the deal could change. Gasgoo noted that there is no certainty the restructuring will be completed.
