Recently, multiple netizens claimed on a public platform that Nezha Motors did not issue September employee salaries on time. Subsequently, this matter continued to escalate.
Nezha Motors typically disburses the previous month’s salaries on the 15th of each month. On October 16th, an insider from Nezha Motors responded to The Paper News, stating that the salaries for frontline employees had been distributed, while middle-level and senior management were undergoing equity optimization and salary structure adjustments. It was mentioned that before the IPO, there is a need for confirmation of rights, hence the slight delay in the payment of some salaries.
On the same day in the afternoon, an insider from Nezha Motors informed First Financial Daily that they had received their September salaries on the afternoon of the 16th, only delayed by a day, as salaries had been distributed on time before.
In February of this year, Nezha Motors had also been reported to delay the distribution of year-end bonuses, provident fund, and salaries. CEO Zhang Yong promptly posted a response in an attempt to quell the situation.
According to First Financial Daily, Nezha Motors, once a dark horse in the new energy vehicle sector, has not been performing as expected in the past two years. In September 2024, Nezha Motors delivered 10,118 vehicles, marking a 23.41% year-on-year decrease and an 8.06 percentage point decrease from the previous month. From February 2024 to date, Nezha Motors has experienced seven consecutive months of year-on-year sales decline.
In the first nine months of 2024, Nezha Motors’ cumulative sales volume reached 85,908 vehicles, representing a 12.1% year-on-year decline, achieving only 43% of the annual sales target of 200,000 vehicles.
Against the backdrop of poor sales figures, Nezha Motors’ financial chain issues have also attracted widespread market attention.
As per the prospectus, under consecutive annual losses, Nezha Motors’ cash reserves have become insufficient. From 2021 to 2023, Nezha Motors recorded net losses of 4.84 billion yuan, 6.66 billion yuan, and 6.867 billion yuan, respectively, accumulating losses exceeding 18 billion yuan over the past three years. By the end of 2023, Nezha Motors’ cash and cash equivalents totaled 2.837 billion yuan.