China’s new energy vehicle company Nezha Automotive’s ongoing financial crisis continues to attract attention. In recent days, a corporate information platform revealed that Nezha Automotive’s founder Fang Yunzhou and co-founder and former CEO Zhang Yong have been listed as dishonest debtors (commonly known as “laolai”) by the court for failing to comply with the court’s effective judgment.
On March 13, the Enterprise Check APP showed that Yichun Langling Enterprise Management Consulting Center, Zhang Yong, and Fang Yunzhou, due to their ability to fulfill but refusing to comply with the obligations defined in the effective legal documents, have been listed as dishonest debtors by the Changning District People’s Court in Shanghai, with a record of total non-compliance. According to the case flow information, last December, the aforementioned companies and individuals were executed for over 226,000 yuan.
As of now, Yichun Langling Enterprise Management Consulting Center (Limited Partnership) has two records of debtors, with an executed amount of 365,700 yuan; and a historical record of three debtors, with an executed amount exceeding 1.42 million yuan.
Public records show that Yichun Langling Enterprise Management Consulting Center (Limited Partnership) was established in October 2021, with Fang Yunzhou as the executive partner, contributing 5.48 million yuan, and its business scope includes social and economic consulting services, and information consulting services. According to partner information, Fang Yunzhou holds 6.93% of shares in the consulting center, making him the actual controlling party, while Zhang Yong holds 0.91% of shares.
Fang Yunzhou is the founder and chairman of Nezha Automotive, while Zhang Yong is the co-founder and former CEO of Nezha Automotive. In 2022, Nezha Automotive had an annual sales volume of 152,100 vehicles, becoming the sales champion among new car manufacturers for that year. However, since then, Nezha Automotive’s sales have been continuously declining.
Starting from October 2024, Nezha Automotive has been caught in controversies involving layoffs, salary reductions, and contract defaults.
On December 6 of the same year, Nezha Automotive announced that Zhang Yong would no longer serve as the company’s CEO, but would instead become a consultant. Fang Yunzhou took on the additional role of CEO of the company.
Currently, Fang Yunzhou has stakes in 66 affiliated companies, with two being deregistered and the remaining 64 still active. The active companies include Hezhong New Energy Automobile Co., Nezha New Energy Vehicle Manufacturing Co., and Zhonglian Tianxia Automobile Sales Service Co., among others.
Zhang Yong currently has stakes in 37 affiliated companies, with four being deregistered and 33 still active. The active companies include Hezhong New Energy Automobile Co. and Tongxiang Hecreate Energy Investment Management Consulting Limited Partnership, among others.
Hezhong New Energy Automobile Co. is Nezha Automotive’s parent company. Currently, Fang Yunzhou serves as the chairman of Hezhong New Energy Automobile Co., while Zhang Yong is a director and general manager.
However, the company’s financial and debt pressures have long been present. On May 13 last year, Hezhong New Energy Automobile Co. was filed for bankruptcy reorganization by Shanghai Yuxing Advertising Co. In June of the same year, the Jiaxing Intermediate People’s Court ruled to accept the bankruptcy reorganization case of the company.
Another corporate information platform, Tianyancha APP, shows that as of now, Hezhong New Energy Automobile Co. has a total of five records of debtors, with a total executed amount exceeding 71.74 million yuan; and a historical record of 117 executions, with a cumulative execution amount of 228 million yuan. In addition, the company also has 99 records of equity freezes.
With debt issues continuing to surface, the future development prospects of Nezha Automotive are also being closely watched by the market.