Neta Auto has reinstated full wage payments at its Tongxiang factory as of July 2025, suggesting the electric vehicle maker is making cautious strides towards stabilising operations amidst ongoing bankruptcy restructuring. The development comes after a prolonged period of financial distress that saw mass layoffs, suspended production, and months of unpaid employee salaries.
The update was disclosed by the court-appointed administrator overseeing the restructuring of Hozon New Energy, Neta’s parent company, on 4 August 2025. Hozon is currently in the process of soliciting strategic investors to support its revival, having formally entered bankruptcy reorganisation proceedings in June this year. To facilitate capital inflow, the company opened a pre-registration platform via Alibaba’s asset disposal site on 10 July. Since then, 47 interested parties have expressed formal interest, with potential investors required to place a 50 million yuan (around RM32,500,000) deposit by 15 September 2025.
The identities of the 47 entities that have expressed interest in investing in Hozon New Energy Automobile are not publicly disclosed.
Neta’s financial instability came to a head earlier in 2025, following months of liquidity problems that culminated in delayed salary payments dating back to November 2024. At its peak, the crisis saw the company halve its workforce, with factory staff reduced to receiving partial or minimum payments of just above 2,000 yuan. A viral video in early June captured the rising tensions as employees confronted Neta Chairman Fang Yunzhou at the firm’s Shanghai office, demanding their overdue wages.
