news

On August 19, HiPhi released a service announcement stating that from now until the completion of pre-reorganization and reorganization, Shanghai Yueda Intelligent Driving Automotive Service Co., Ltd., a wholly-owned subsidiary of Jiangsu Yueda Automobile Group, is authorized to purchase HiPhi auto parts and components and support HiPhi auto after-sales service. Currently, the procurement of after-sales parts has started, and HiPhi's after-sales service centers and related cooperative outlets are gradually resuming the supply of parts.

In February of this year, HiPhi officially announced to the outside world that the company's operations were in trouble, and that it would suspend operations and stop production, and that employees' social security payments would be discontinued. At that time, HiPhi said that the company had made major adjustments to its daily operations since February 19, and was currently taking all possible measures to alleviate its difficulties. During this period, HiPhi officials will prioritize user service operations, vehicle after-sales maintenance and other related work. In terms of after-sales service, HiPhi will work with Yancheng Yueda Intelligent Innovation Energy Automobile Co., Ltd., a subsidiary of Jiangsu Yueda Group, to provide guarantees.

Behind HiPhi Auto's operating difficulties is its long-term poor sales. Human Horizons, the operating entity of HiPhi Auto, was established in 2017. Since then, it has launched three models. The positioning of these three cars is not low, with the highest price set at 800,000 yuan and the lowest starting price at 339,000 yuan. Public data shows that in 2021 and 2022, HiPhi Auto's annual cumulative sales were only 4,237 and 4,349 respectively. In 2023, with the launch of the lower-priced model HiPhiY, HiPhi Auto's sales rebounded to 8,681 units, but such sales obviously cannot support the sustainable operation of the entire enterprise.

After the operational difficulties, HiPhi once placed its hopes on new financing or other corporate acquisitions. When speaking to employees, HiPhi founder Ding Lei said that HiPhi still had a three-month window. After the announcement of the suspension of work and production, it attracted the attention of all sectors of society. Many companies have been interested in HiPhi, either acquiring or investing in it.

In the following months, HiPhi Auto successivelyChangan Automobile, Lifan Technology, etc., but the above rumors were eventually refuted or denied, and HiPhi Auto's self-rescue has not made any substantial progress. In addition, HiPhi Engineering Project Director Yang Yueqing and company executives appeared in HiPhi Auto's live broadcast room to promote fresh food, snacks and other products.

As of July 1, HiPhi Auto's parent company Human Horizons applied to the court for reorganization of the company, and also applied for pre-reorganization, on the grounds that its assets could not pay off all due debts, but it had reorganization value and possibility. On August 8, the court filed a case and accepted Human Horizons' pre-reorganization application. It is reported that the pre-reorganization period of Human Horizons is six months from the date of the above decision. If there are legitimate reasons, it can be extended for three months upon application by the pre-reorganization administrator.

HiPhi Auto stated that judicial pre-reorganization is an important turning point to gradually resolve HiPhi Auto's current predicament. It is also a key step for the government, courts, shareholders, and potential investors to recognize the value of HiPhi Auto, and to push Human Horizons to resolve creditor issues under the intervention of judicial effectiveness, and to form a restructuring and regeneration plan that is in the common interests of all parties as soon as possible.