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Recently, according to Tianyan information, the 18.22 million stake held by Hezhong New Energy Automobile Co., Ltd., its parent company, was frozen on November 13. The enterprise whose equity is executed is Zhongliantian Automobile sales and Service Co., Ltd., the freeze period is from November 13, 2024 to November 12, 2027, and the enforcement court is the people's Court of Huicheng District, Huizhou City, Guangdong Province. It is worth mentioning that in February this year, Hezhong New Energy Automobile Co., Ltd. was frozen for as much as 10 million yuan, and the equity was executed by Tongxiang Hezhong Automobile sales Co., Ltd. the freeze period is from February 6, 2024 to February 5, 2027.

According to the data, Hezhong New Energy Automobile Co., Ltd. was established in October 2014. the company's main business scope is the design, development, production, sales and related consulting services of new energy vehicles and spare parts; computer software development; industrial design of new energy vehicles; import and export of goods, technology, etc. It is jointly owned by Nanning Minsheng New Energy Industry Investment Partnership (Limited Partnership), Yichun Jinhe Equity Investment Co., Ltd., and Tongxiang Zhonghe New Energy Automobile Industry Investment Partnership (Limited Partnership).

In fact, it is not surprising that the equity of Hezhong New Energy Automobile Co., Ltd. has been frozen. After all, since 2024, there has been an endless stream of negative news about poor car sales, layoffs, unpaid wages, unpaid suppliers and so on. Nezhong Automobile, a brand launched by Hezhong New Energy Automobile Co., Ltd. in 2014, was qualified for the production of pure electric vehicles in 2017 and launched its first model N01 the following year, with a subsidised price of 5.98-69800 yuan. With the slogan of building cars for the people, with the price advantage of less than 100000 yuan, it once ranked at the top of the list of new car-building forces in China. In 2022, the cumulative sales of Naha cars reached 150000, surpassing Wei Xiaoli to become the dark horse of the new power of car building.

However, such a highlight period did not last long. Due to the intensification of the price war in the market competition, many car companies also accelerated to launch models within the price of 100000 yuan to seize market share, and Naha's car sales were also reduced. Figures show that last year, Nashi sold 127496 vehicles, down 16.16% from 2022, and only half of the official annual sales target of 250000.

With regard to the sharp drop in sales, Zhang Yong, CEO of Naga Automobile, once posted a summary on Weibo personal platform, pointing out that the reason why Naga car sales were poor in 2023 was related to poor convergence during the switch between new and old products, disorderly rhythm, and high pricing of new products on the market. It is also pointed out that although the adjustment is in place in the second half of the year after the problem is found, the first opportunity is lost. Since the beginning of this year, although it is said that the car has made adjustments in terms of personnel changes and new models. But the effect is not obvious. Data show that domestic retail sales of Nahu cars in October were 6002, down 40.32% from a year earlier. From January to October this year, the domestic retail sales of Naha cars did not exceed 10,000.

Sales are not ideal, the most direct consequence must be the shortage of funds. The data show that by the end of 2023, the funds on Naha's automobile account were 2.837 billion yuan, and the loan balance was 5.76 billion yuan. In addition, the annual loss is also increasing, with a cumulative loss of 18.373 billion yuan over the past three years from 2021 to 2023. To this end, officials also launched a pay cut plan last month. The pictures posted on the Internet show that employees with an annual salary of more than 1 million yuan will have their salaries cut 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%.

At that time, in response to the pay cut, Naha Automobile responded that it was to launch the company's all-member equity incentive plan, which allocated 5 per cent of the shares (valued at about 2 billion yuan) to all employees as equity incentives, and announced a new salary and performance appraisal plan internally. Officials say these plans are 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.

The auto industry is concerned that although the auto industry is taking measures such as layoffs and salary cuts, it can indeed reduce expenses to a certain extent. But in the end, if you want to get out of trouble, you have to rely on sales to speak up. At the same time, there needs to be an inflow of capital, otherwise the situation of the car in the future will be more and more difficult. A few days ago, there were media reports that Naha Automobile has received financial support from the Nanning Industry and Investment supply chain. In the future, it will help Naha Automobile to comprehensively coordinate and organize the raw material procurement, production, logistics, KD parts export and other business in Nanning Base, so as to assist the production and delivery of Naha Automobile overseas models. However, it is worth noting that at present, many domestic car companies are also laying out overseas markets, and there are still some challenges if Nahu wants to rely solely on overseas sales to change the current situation of tight funds. According to the data, the export sales of Nashi cars in October were only 1206.

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