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According to the Shanghai Securities News on August 9,Recently, the People's Court of Yancheng Economic and Technological Development Zone made public the pre-reorganization decision of HiPhi Auto's parent company Human Horizons (Jiangsu) Technology Co., Ltd.

According to the decision of the People's Court of Yancheng Economic and Technological Development Zone,On July 1, Human Horizons applied to the court for reorganization of the company, and at the same time applied for pre-reorganization, on the grounds that its assets could not pay off all debts due, but had reorganization value and possibility.

On August 8, the court filed the case and accepted Human Horizons’ application for pre-reorganization.It is reported that the pre-reorganization period of Human Horizons is six months from the date of the above-mentioned decision. If there are legitimate reasons, it can be extended for three months upon application by the pre-reorganization administrator.

The decision shows that as of April 30, 2024,The company's known unpaid debts exceed the company's total assets.The assets are not sufficient to pay off all debts, and there are grounds for bankruptcy.

Tianyancha shows that Human Horizons (Jiangsu) Technology Co., Ltd. was established in September 2017 with a registered capital of RMB 1 billion. The legal representative is Ding Lei, and the company is jointly held by Human Horizons Holdings (Shanghai) Co., Ltd. and Jiangsu Yueda Automobile Group Co., Ltd. Risk information shows that Human Horizons (Jiangsu) Technology Co., Ltd. has become the person subject to execution, with a total execution amount of approximately RMB 2.7893 million.

In addition, Ding Lei, the founder of HiPhi and the legal representative of the company, is currently associated with a total of 5 restricted consumption information, with the total amount involved being approximately 185,200 yuan.

According to Nandu.com, foreign media previously reported that iAuto and HiPhi Auto's parent company Human Horizons signed a comprehensive strategic cooperation agreement on May 10, 2024. The scope of cooperation includes production collaboration, equity mergers and acquisitions, technical cooperation, brand and international sales docking, supply chain and production integration, etc. iAuto plans to invest more than US$1 billion in the first round of special funds to fully support HiPhi Auto's resumption of business operations and vehicle production.

Public information shows that the beneficial owner behind iAuto is Yang Rong, the chairman of Hybrid Group and the largest single shareholder. Yang Rong is a well-known figure in the Chinese auto industry. He successfully managed Brilliance Auto's listing in the United States and created the "Brilliance Group". But later he left for the United States for various reasons. In recent years, Yang Rong has been trying to return to the Chinese auto market. Industry insiders believe that the cooperation between iAuto and HiPhi may be an opportunity for him to realize his dream of making cars.

However, some media pointed out that the financial situation of Zhengdao Group was not optimistic at the time and the cash on its account was limited. Therefore, it is still uncertain whether iAuto's $1 billion investment in HiPhi can be truly realized.

The Daily Economic News previously reported that, in fact, since 2024, Gaohe Auto has been repeatedly reported to have stopped work and wages could not be paid on time. At the beginning of this year, there was news that Gaohe Auto "suspended all work". A blogger posted a screenshot of a forum, which showed that "all Gaohe work was suspended, including stopping shipments, stopping new project development, and making preparations for prosecution". Another netizen broke the news that on the first night of the New Year's Day holiday, Gaohe Auto issued an announcement on Feishu, canceling employee meal subsidies, transportation subsidies, company shuttles and other benefits.

In response, HiPhi Auto previously issued a statement on social media platforms saying that the company's operations are normal, and R&D, production, marketing, delivery and other work are progressing normally. "The original platform has deleted the post and issued a warning to the member who posted it. The wrong interpretation of relevant information has caused serious damage to HiPhi Auto's brand reputation and misled public opinion. Our company has reported the case to the public security department. Please do not believe in rumors or spread them." HiPhi Auto said in a statement.

On March 8, HiPhi started its "self-help road" of selling products through live streaming. Yang Yueqing, the engineering project director of HiPhi, appeared in the live streaming room as a host to explain steak and other foods. Earlier on March 6, Yang Yueqing mentioned in the live streaming that HiPhi will sell products through the live streaming room, and will directly provide these revenues to the front-line after-sales partners, so that car owners can get protection.

Image source: Screenshot of HiPhi live broadcast

Public data shows that HiPhi Auto was founded in 2017. At the beginning of its establishment, it focused on the high-end luxury market of 600,000 to 800,000 yuan. Among the three models currently on sale, HiPhi Z and HiPhi X are both in this price range. From the perspective of market performance, in 2021 and 2022, HiPhi Auto's sales did not exceed 5,000 units, reaching 4,237 and 4,349 units respectively.

According to data from Pacific Automotive Network,HiPhi Auto sold a total of 4,829 vehicles from January to December 2023, ranking 97th among domestic automobile brands, among which HiPhi X sold 226 units, HiPhi Z sold 429 units, and the lowest-priced HiPhi Y sold 4,174 units.

According to the owner's guide data, HiPhiA total of 272 vehicles sold in 2024Among them, HiPhi Y sold 156 units, HiPhi X and HiPhi Z sold 31 units and 85 units respectively.

Daily Economic News is compiled from Shanghai Securities News, Nandu Wancaishe, Tianyancha, and public information

Daily Economic News