NETA Automobile bankruptcy case accepted by the court, 199 million notes default became the fuse

20 June 2025

NETA Automobile

On June 19, 2025, the China Enterprise Bankruptcy and Reorganization Case Information Network showed that the bankruptcy case of NETA Automobile's parent company Hezhong New Energy Automobile Co., Ltd. was officially accepted by the Jiaxing Intermediate People's Court of Zhejiang Province, and the administrator was Zhejiang Zicheng Law Firm. The bankruptcy application was initiated by Shanghai Yuxing Advertising Co., Ltd., and the company's legal representative An Kun revealed that Hezhong New Energy owed it more than 5.3 million yuan in advertising service fees.

NETA event nodes

May 13: The first bankruptcy review application appeared, and the court filed the case on the same day;

June 12: The "NETA Automobile Reorganization Statement" was leaked online, saying that it would give priority to the delivery of existing orders. The company responded that it was only an alternative plan;

June 19: The court officially ruled to accept the bankruptcy case, and the administrator moved in to take over the assets;

Signs of business crisis

Fund chain broken: As of the end of May, Hezhong New Energy's bills defaulted for a total of 199 million yuan, and CEO Fang Yunzhou's 20 million yuan equity was frozen;

Employee turmoil: In June, employees at the Shanghai headquarters collectively demanded wages, and the company notified all employees to work from home;

Market performance: Sales in recent years have not met expectations, and core technology competitiveness is insufficient;

Industry impact and subsequent disposal

The bankruptcy administrator will conduct a comprehensive inventory of assets and debts, and give priority to creditor declarations (the declaration deadline is to be announced). Toyota Motor had previously expressed its intention to acquire, but it has not been confirmed. As a brand that was once ranked in the second tier of new car-making forces, NETA Automobile ultimately failed to realize its vision of "changing destiny".

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