From Yahoo Finance: 2025-05-20 05:38:00

China’s Hozon New Energy Automobile faces bankruptcy review from local advertising company, causing speculation. Hozon denies filing for bankruptcy internally. Case filed by Shanghai Yuxing Advertising Company in Jiaxing, Zhejiang province court. Struggles include debt payments, layoffs, and plummeting vehicle deliveries in 2025.

Hozon reaches debt-to-equity agreements with key suppliers worth over CNY 2 billion. Wage arrears remain unpaid, layoffs ongoing since October. Company sold 100,000 vehicles in 2024, but deliveries dropped by 80%-90% in Q1 of 2025. Rumors of takeover by Toyota Motor Corporation denied by both parties.

Neta, Hozon’s brand, seeks to raise CNY4 billion in Series E fundraiser. Leading investor expected to provide up to CNY3 billion of funding. Company denies rumors of takeover interest and emphasizes fundraising efforts. Situation closely monitored by industry analysts for potential impact on electric vehicle market.

Read more: Struggling Hozon Auto subject to bankruptcy review