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It has recently been revealed that the shaky Nahu car will start large-scale layoffs.

On November 7, several media reported that Naha would lay off workers on a large scale, perhaps as high as 70%. The news at that time also triggered a large number of netizens. With regard to this news, some people familiar with the matter revealed in an interview with the media that under the consideration of cost reduction, there was indeed a personnel adjustment internally, and this was an overall adjustment. Each department will have a proportion according to business needs, and there is no uniform proportion. At the same time, the relevant Nahu automobile staff revealed to the media that the layoffs in their department are still waiting for notice, and the compensation plan they have heard is Ninten1, and the compensation will be implemented within 60 working days. At the same time, the employee also revealed that the salary of the whole company in September is only half, and whether the salary will be paid in October has not been confirmed.

In response to the news, Naha Automobile responded that the company is building a more centralized and efficient organizational structure through measures such as streamlining the business, focusing on the core, organizational optimization and compensation performance reform. Sub-departments will integrate according to business requirements and future development needs, promote intensive investment of resources, and further enhance the competitiveness and operational efficiency of enterprises.

This time, the authorities did not deny the layoffs. It is not difficult to see that the car has really encountered difficulties recently. After all, since last month, there has been frequent news of unpaid wages, pay cuts and so on. On Oct. 15, a number of employees of Naga car posted on a social platform that the car could no longer pay wages and owed a lot of money to suppliers, and everyone was advised to be cautious about buying the content. At that time, this news also set off a hot discussion on the Internet.

At that time, in response to the news, Naha Automobile responded that: at present, the salaries of front-line and factory employees are paid on time, and the middle and senior executives of the company are adjusting their salary structure recently. They should confirm their rights before IPO, and only individual salaries are paid a little slowly. Not long after the news of the wage arrears, at the end of last month, Naha car was once again revealed that it plans to cut wages. According to the proportion of salary reduction exposed on the Internet, employees with an annual salary of more than 1 million yuan will have their salaries reduced by 30%; those with an annual salary of 50-1 million yuan will have their salaries reduced by 20%; those with an annual salary of 30-500000 yuan will have their salaries reduced by 10%; and those with an annual salary of less than 300000 yuan will have their salaries reduced by 5%. In addition, on the basis of this pay cut, if the employee's salary is still higher than the "post salary", it will be reduced by another 10%. According to media reports at the time, the pay cut involved more than 1,000 people, and wages began to fall on September 1.

Naha Automobile subsequently responded to the pay cut by saying that the company had launched a full-staff equity incentive scheme and would allocate 5 per cent of its shares (valued at about 2 billion yuan) to all employees as equity incentives. At the same time, a new salary and performance appraisal plan was announced internally. Officials also revealed that the incentive and salary adjustment plan is part of the company's goal of operating cash flow as soon as possible, followed by a series of measures to reduce costs and increase efficiency, such as streamlining, eliminating redundant staff, focusing on business, and flat management.

It is worth mentioning that recently, Naha car has not only been reported layoffs, wage cuts, wage arrears and other news, but also revealed that it is in arrears with the contract. Yesterday, Evert announced that the company had filed a lawsuit because the parent company, United Motor, owed more than 48 million yuan in contract payments. According to the contents of its announcement, from 2020 to 2022, the Yichun branch of Hezhong New Energy Automobile Co., Ltd. signed the contract for the general contract for the equipment of the car body workshop, the contract for the project of rolling edge island and welding island, and the project contract and supplementary agreement for the automatic welding line, respectively. As of the date of the plaintiff's lawsuit, the above project has been checked and accepted, and Yichun Hezhong still owes more than 48.19 million yuan.

In fact, successively falling into a whirlpool of public opinion is directly related to the poor sales of Nahan cars in the market in the past two years. Data show that Naha Automobile was established in 2014 and is a car brand of Hezhong New Energy Automobile Co., Ltd. At the beginning of its establishment, relying on the banner of building cars for the people and the advantage of price, it once became the dark horse of the new forces of building cars. In 2022, Naha Automobile ushered in a highlight period, with cumulative sales of 152100 vehicles, an increase of 118% over the same period last year.

However, this highlight moment did not last long. After entering 2023, with the increasingly fierce market competition, many car companies have adopted the strategy of price war to seize market share. The price decline also makes the price advantage of Nashi car is no longer obvious. In 2023, the cumulative sales of Nashi cars were only 127500, down 16% from the same period last year. At that time, Zhang Yong, CEO of Naha Automobile, also summed up the decline in sales, saying that the reason why Naha's sales were poor in 2023 was mainly due to the failure to link up well with the switch between new and old production, and the rhythm was disorderly; the pricing of new products on the market was too high, although the adjustment was in place in the second half of the year, but the first opportunity was lost; the production of the lossmaking product line was greatly reduced; and the way of communication was old and good things could not be said. Marketing headquarters centralization and weak management and other factors.

Although officials have made many personnel adjustments and launched new models this year, sales growth is still slow. The latest figures show that the latest car sales in Nashi were 10118 in September. In the first three quarters of 2024, Nashi delivered 85900 vehicles, down 12.13% from the same period last year. With the decline in sales, the financial aspect is naturally more tense. The data show that as of the end of last year, the funds on the car account of Naha was 2.837 billion yuan, and the loan balance was 5.76 billion yuan. In terms of losses in recent years, Naha's losses are also increasing year by year, with losses of 4.84 billion yuan, 6.666 billion yuan and 6.867 billion yuan respectively from 2021 to 2023, with a cumulative loss of 18.373 billion yuan in three years.

As we all know, building a car requires a lot of money. Nezha cars are frequently exposed as wage arrears, wage cuts and other negative, are undoubtedly linked to the lack of funds. In order to obtain the source of funds, Hezhong New Energy Automobile Co., Ltd., the parent company of Naha Automobile, submitted its listing application to the Hong Kong Stock Exchange in June this year, but as of press time, no further progress in the listing application has been announced. In addition to listing this channel, Naha Automobile has also set its sights on overseas markets, hoping to rely on overseas markets to increase sales. In September, the first NETA X produced by Nashi Automobile in Indonesia was officially put off the line. But in fact, the expansion of the market also requires a lot of capital investment, for the current situation of the car, overseas market sales may not play a big role, the focus is still the inflow of funds.

Listing is undoubtedly the fastest financing channel, and the auto industry is concerned about finding that the code of which car is on the Hong Kong motherboard has changed recently. It has been changed from the previous temporary code 810613 to the official code H1940, which may mean that Nezha car will be on the market in the near future. Some industry insiders pointed out that this time Naha Automobile made salary cuts and layoffs, financial optimization measures in addition to reducing costs and efficiency, there may also be an intention to complete IPO more smoothly. It is understood that the IPO approval of the Hong Kong Stock Exchange is valid for six months, and the listing application was submitted in June this year. If the listing is not completed within the next month or two, the follow-up situation will be even more difficult.

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