Neta Auto Eyes Revival With Debt Swap
KS
18-4-2025
Neta Auto has reportedly reached a deal with its creditors that could buy it more time to turn things around. According to Chinese media outlet Jiemian, Neta signed a debt-for-equity swap agreement with 134 key domestic suppliers involving more than RMB 2 billion (about RM1.3 billion).
Under the plan, 70% of the suppliers’ outstanding payments will be converted into equity in Neta’s parent company, Hozon Auto, while the remaining 30% will become interest-free debt. This debt will be split into 15 equal installments, with repayment scheduled to start in May at a rate of one installment per month.
Another report confirmed that the proposal has gained support from major suppliers, including battery giants CATL and Gotion High-tech. Hozon Auto, which owns the Neta brand, was founded in Oct 2014 and secured its production license in April 2017. Currently, Neta is the company’s only automotive brand.
Back in Nov 2024, Neta carried out large-scale layoffs as it struggled with financial difficulties. On March 19 this year, the company held a meeting at its headquarters with some of its suppliers to discuss the debt-for-equity plan.
During the meeting, Neta executives explained that the company’s fixed assets were not enough to cover its debts and that bringing in fresh investment was essential for survival.
Neta’s total liabilities are currently close to RMB 10 billion (RM 6.1 billion), with around two-thirds of that owed to suppliers. Because of the heavy debt, potential investors have been reluctant to commit funds unless Neta reduces its liabilities first.
In 2022, Neta delivered 152,073 vehicles, a 118.26% jump compared to 2021. However, its vehicle deliveries slumped in the past two years, more so that it has stopped publishing monthly sales figures after Oct 2024.
Despite pausing vehicle sales in China, it is reported Neta is still pushing ahead with international expansion. Recently the company announced its participation in the 46th Bangkok International Motor Show and shared its aim to sell more than 10,000 vehicles per year in Thailand.
Thailand is one of Neta’s biggest foreign markets, however it is not doing so well in neighbouring Malaysia and Indonesia. It was also reported Neta has shut its door in Singapore barely three months after beginning operations.
Neta also announced recently that is has secured a THB10 billion (RM 1.3 billion) credit line from a Thai financial institution.
Source: CNEVPOST
Written By
KS
More then half his life spend being obsessed with all thing go-fast, performance and automotive only to find out he's actually Captain Slow behind the wheels...oh well! https://www.linkedin.com/in/kumeran-sagathevan/
JPJ Running Numbers
KUALA LUMPUR
VPD5805
SELANGOR
BSE8094
JOHOR
JXX6527
PULAU PINANG
PRQ7224
PERAK
ANV8144
PAHANG
CFB7856
KEDAH
KGA6075
NEGERI SEMBILAN
NEF9145
KOTA KINABALU
SJK9830
KUCHING
QAB3735L
Last updated 20 May, 2025
Fuel Price
Petrol
RON 95
RM 2.05
RON 97
RM 3.07
-0.03
RON 100
RM 5.00
VPR
RM 6.23
Diesel
EURO 5 B10
RM 2.77
-0.03
EURO 5 B7
RM 2.97
-0.03
Last updated 15 May, 2025
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