3 Billion Yuan Falls Short

Author｜Wang Lei

Editor｜Qin Zhangyong

In its quest for revival, Neta Auto has turned to 'mysticism'.

Recently, during the fourth creditors' meeting in Neta Auto's bankruptcy restructuring case, a company named Zhejiang Taiyi Shenglian emerged, proposing to invest 3 billion yuan to acquire approximately 70.62% of the equity in Hozon New Energy, Neta Auto's parent company, thereby becoming the controlling shareholder.

In Chinese mythology, Taiyi is Nezha's master, and Shenglian represents Nezha's reincarnated physical form. This name instantly evokes the image of Taiyi Zhenren resurrecting Nezha in the legend.

This has led many netizens to joke, 'Rescuing Nezha still relies on Taiyi Zhenren,' and 'This company name clearly signals its role as the savior.'

However, while 3 billion yuan may seem substantial, it pales in comparison to Neta Auto's enormous debt. As of the end of August 2026, 1,631 creditors had filed claims totaling over 26 billion yuan.

Neta Auto's plan to rebuild its 'golden body' with just 3 billion yuan appears tight in any calculation.

01 Who is the True 'Taiyi Zhenren'?

As netizens have joked, behind this seemingly coincidental name lies a meticulously crafted capital arrangement.

According to publicly available business information, Zhejiang Taiyi Shenglian Enterprise Management Partnership (Limited Partnership) is a brand-new enterprise, established on April 21, 2026, with a registered capital of 3.001 billion yuan. Clearly, it is a special purpose entity established specifically for the restructuring.

Its name boldly declares to the world, 'I'm here to revive Neta Auto.'

Upon delving into the equity structure, things become even more intriguing. Taiyi Shenglian is backed by two partner companies. One is Zhejiang Shanzhi Yuxu Technology Co., Ltd., holding 0.0333%, serving as the executing partner.

Anyone familiar with 'Feng Shen Bang' knows that Nezha's master is Taiyi Zhenren, who used the sacred lotus to reshape Nezha's body. Taiyi Zhenren is one of the twelve Golden Immortals under Yuanshi Tianzun's sect, and Yuanshi Tianzun's dojo is called Kunlun Mountain Yuxu Palace. Nezha is also a third-generation disciple of the Yuxu Palace sect.

This is truly bringing in the patriarch...

However, Zhejiang Shanzhi Yuxu Technology is also a brand-new company, established in January 2026, clearly an investment platform established specifically for this restructuring.

The other partner is Zhejiang Shanzhi Holdings Co., Ltd., holding a staggering 99.9667%. Upon delving into its equity structure, the true financial backer emerges.

The actual controller of Zhejiang Shanzhi Holdings is Ye Ji, chairman of Shanzhi Hi-Tech, while the actual controller of Shanzhi Yuxu Technology is Yu Shuxin, head of Shanzhi Hi-Tech's board office. Additionally, Yu Shuxin also serves as the legal representative of Shanzhi Youqian, an automotive company under Shanzhi Hi-Tech.

After more than a year, Shanzhi Hi-Tech has officially entered the restructuring list for Neta Auto.

As early as June last year, Shanzhi Hi-Tech became an intended strategic investor in Neta Auto's bankruptcy restructuring, becoming the sole qualified restructuring intentional party in September and paying a 50 million yuan deposit. However, the initial restructuring plan, valued at 4.5 billion yuan with a corresponding debt repayment rate of 18.7%, failed to pass a vote by core creditors, pushing the restructuring process towards liquidation.

There were also reports that its team had moved into Hozon New Energy to take over daily operations and even established Qianhe Automotive, bringing in Zhu Renjie, a key figure from Tesla's Chinese manufacturing system, aiming to revitalize Neta Auto's assets.

In March 2026, due to the failure to submit the original restructuring plan draft on schedule, the court ruled to terminate the restructuring and transition to bankruptcy liquidation, voiding the 4.5 billion yuan plan. A month later, Taiyi Shenglian was registered.

However, Shanzhi Hi-Tech has consistently denied any direct involvement in Neta Auto's restructuring, even now. Despite the close personnel connections between the two shareholders of Taiyi Shenglian, 'Taiyi Shenglian' has no direct financial or equity ties to Shanzhi Hi-Tech.

Shanzhi Hi-Tech has also publicly clarified that the listed company itself is not participating in Neta Auto's restructuring project, not bearing any related investment obligations or debt risks. The investment behavior and operational entity are outside the listed company and not included in the consolidated financial statements.

In simpler terms, if it succeeds, everyone benefits; if it fails, don't blame the listed company.

Despite Shanzhi Hi-Tech's non-direct involvement in the restructuring project, thanks to its highly associated entities, on September 14, Shanzhi Hi-Tech's stock opened with a limit-up, surging 10.04%, with over 1.9 million buy orders and a turnover exceeding 700 million yuan, reaching a total market value of approximately 28.49 billion yuan, an increase of about 2.5 billion yuan from the previous trading day.

02 Prioritizing After-Sales Support

Compared to which 'Taiyi' ultimately invests in Neta Auto, the market is more concerned about Neta Auto's plans after embarking on its 'revival'.

At the fourth creditors' meeting, besides unveiling the true identity of the restructuring investor for the first time, the 'Restructuring Plan (Draft)' was also announced.

Taiyi Shenglian is clearly defined as the 'special entity established for this restructuring.' According to Neta Auto, its management team has extensive experience in automotive industry operations and bankruptcy restructuring, having successfully completed the bankruptcy restructuring of a listed company in the auto parts industry.

According to the plan, Taiyi Shenglian will invest 3 billion yuan as the restructuring investment, thereby acquiring approximately 70.62% of the equity in Hozon New Energy. The allocation is also clear: 1.167 billion yuan will be earmarked for repaying debts corresponding to the assets to be retained and bankruptcy expenses; 1.833 billion yuan will be injected into Hozon New Energy as working capital needed for resuming operations, specifically for vehicle production resumption, supply chain reconstruction, after-sales network restoration, and daily operational turnover.

The ordinary debt involved in this restructuring amounts to approximately 11.7 billion yuan, covering over 1,600 creditors, with priority debt of about 2.2 billion yuan involving 9 creditors.

Regarding the repayment plan, for ordinary debts, the portion within 800,000 yuan is expected to be repaid in installments at approximately 12%, with 10,000 yuan paid within one year and the remainder within two years; the portion above 800,000 yuan will be converted into equity. Priority debts will retain the principal, with only interest paid in the first three years.

The remaining 1.833 billion yuan also comes with three relatively detailed phase plans for its use.

The first step is to resume production, prioritizing the production of the Nezha X model, targeting overseas markets with an initial annual sales target of 10,000 units, and stating that the company has already received some tentative orders.

At the same time, rebuild confidence in the upstream supply chain cooperation, ensure the supply of official spare parts, fully restore 'Neta Auto's' after-sales maintenance, and activate the existing service network to provide official maintenance services to car owners.

This is also the most practical step. Previously, Neta Auto's problems were not just declining sales; after production halt, car owners' maintenance, spare parts supply, and after-sales services were all affected. For a brand that has already experienced operational crises, the primary issue is to resolve basic services for existing car owners.

For current Neta Auto owners with 'no after-sales support,' this is undoubtedly a significant benefit. Whether cars can still be sold remains to be seen, but at least 'car repairs' are now hopeful.

Additionally, the product line has been significantly streamlined. The production and technical assets corresponding to the Nezha X and Nezha L affordable models are included in the assets to be retained; while assets related to models like the Nezha S and Nezha GT, which previously attempted to enter the high-end market priced between 200,000-300,000 yuan, are not on the retention list and will be disposed of as non-core operational assets.

The second phase after restructuring will focus on launching models suitable for regions like Asia, Africa, and Latin America, with an annual production target of 300,000 units. The third phase plans to create global intelligent models, aiming for an annual output value of 40 billion yuan and initiating IPO preparations.

Regarding employee placement, the administrator stated that for employees with ongoing labor relations with Hozon New Energy, the company will handle their placement in accordance with the law; for former employees who had labor relations with Hozon New Energy, channels for re-employment will be gradually opened in the future.

03 3 Billion Yuan Cannot Save 'Nezha'

The plan is clear, but the real question is whether these 3 billion yuan can revive it.

It's important to know that according to the latest disclosed debt volume, Neta Auto owes over 26 billion yuan, with 1,631 creditors having filed claims. The 3 billion yuan in funds is just a drop in the bucket compared to this volume, and only 1.167 billion yuan can truly be used for debt repayment.

Moreover, the ordinary debt involved in this restructuring is only 11.7 billion yuan, meaning that nearly 14 billion yuan in debt remains unresolved. No matter how you look at it, the 3 billion yuan 'infusion' seems quite limited.

Furthermore, only 1.833 billion yuan of the 3 billion yuan investment is for supplementing working capital. For an automaker to simultaneously restart production lines, rebuild the supply chain, and restore sales channels, this amount is far from sufficient.

Neta Auto has been out of production for over a year, and many suppliers have terminated their cooperation. Rebuilding the supply chain not only requires financial investment but also time and trust restoration. The ramp-up speed of production capacity is expected to be lower than anticipated. Additionally, market competition is fierce; even if targeting overseas markets, domestic automakers are now intensively going global, with equally fierce price competition.

Rebuilding market awareness and channel capabilities after a hiatus of over a year are core issues Neta Auto must address after restructuring.

Now, let's look at the true financial backer, Shanzhi Hi-Tech, which is already struggling itself. Shanzhi Hi-Tech emerged from the bankruptcy restructuring and renaming of the former Yinyi Co., Ltd. in 2022.

According to its 2026 semi-annual report, the main business continued to incur losses in the first half of the year. As of the end of June, the asset-liability ratio was approximately 61%, working capital was -973 million yuan, monetary funds were 311 million yuan, and net cash flow from operating activities was -147 million yuan, indicating tight liquidity and limited financial flexibility.

Incorporating Neta Auto would be akin to dragging itself back into a deeper risk quagmire, which is perhaps why Shanzhi Hi-Tech has set up a 'firewall' through an offshore limited partnership. Even if the restructuring fails, the risk is limited to the 'Taiyi Shenglian' entity.

However, Shanzhi Hi-Tech has its reasons for persistently 'saving' Neta Auto. As a company transitioning from real estate, although it has acquired Hebei Hongxing Automotive to obtain production qualifications and cooperates with Geely to produce export models, it still lacks a crucial asset: a complete 'dual-qualification' production license for high-value passenger vehicles, which is a core asset held by Neta Auto.

According to current industrial policies, to retain its 'dual-qualification' for car manufacturing after being idle for over a year, Neta Auto must complete at least 2,000 units of production by 2026; otherwise, it faces the risk of 'delisting.' The time window for Neta Auto is extremely limited.

Moreover, it's worth noting that the 3.001 billion yuan registered capital of Taiyi Shenglian, the company involved in Neta Auto's restructuring, is currently in a subscribed state rather than fully paid-in. This means that until the funds actually arrive, everything remains uncertain.

In 'Feng Shen Yan Yi,' Taiyi Zhenren saves Nezha using the 'sacred lotus,' a 'great supernatural artifact' that symbolizes rebirth and transformation. However, in the capital market, 3 billion yuan is clearly insufficient for Neta Auto to achieve such a transformation.

The name clearly indicates an intent for revival; the rest depends on whether genuine financial resources can turn this miracle into reality.