After facing significant layoffs and production halts, Nezha Auto has recently experienced a remarkable turnaround.

On January 3, Nezha Auto concluded its shareholders' meeting; by January 4, it announced a full resumption of operations; and on January 6, production activities recommenced.

The company has reportedly secured a new round of funding, although the specific amount has not been disclosed. This infusion of capital is seen as crucial for Nezha Auto to actively address challenges and resume production.

Insiders have revealed that shareholders plan to conduct financing in two phases, contingent upon the successful receipt of funds.

Nezha Auto is a subsidiary of Zhejiang Hozon New Energy Automobile Co., Ltd.

Following the resumption of work, Nezha Auto swiftly formulated a detailed production plan. The company aims to manufacture 1,000 vehicles by the 15th of this month, setting a solid foundation for achieving the total production target of 4,000 vehicles for January and February.

The Tongxiang factory in Zhejiang will focus on producing the Nezha L and Nezha S shooting brake versions to ensure domestic market supply, while the Nanning factory in Guangxi Province will be responsible for manufacturing the Nezha X and models destined for the international market.

Regarding models that could not be delivered on time due to factory shutdowns and parts needed for repairs, Nezha Auto has stated that it will gradually resume deliveries and parts supply.

Nezha Auto has commenced negotiations for the restart of the supply chain and an assessment of production capacity. This is an extensive task, requiring individual negotiations with each supplier. If one round of negotiations is unsuccessful, it may take two or three rounds. The process is not as straightforward as merely resuming production.

In November, Nezha Auto faced large-scale layoffs and factory shutdowns. On December 6, the company announced that Zhang Yong would step down as CEO, with founder and chairman Fang Yunzhou concurrently taking up the role. In a letter to all employees, Fang Yunzhou noted that the company was facing intense internal competition in the market, rapid public opinion expansion, and issues with strategy, organization, and management systems, leading to short-term turbulence in the company's development.

With the influx of new funding and the progress in resuming production, Nezha Auto aims to regain momentum in the new year.