After over a month, Nezha Auto's 'self-rescue' plan has shown promising advancements.

On the afternoon of March 25, multiple media outlets reported that Nezha Auto announced a debt-to-equity swap agreement totaling over RMB 2 billion with 134 domestic core suppliers. This plan was endorsed by leading suppliers such as CATL, GuoXuan High-Tech, BDNavi, and Green Field Automotive Lighting.

According to reports, Nezha Auto's debt resolution plan offers suppliers a deal where 70% of their claims will be converted into equity in Nezha Auto's parent company, Hezhong Auto, while the remaining 30% will be repaid in cash installments as interest-free retained debt. Payments will be spread over 15 installments, beginning in May this year, with one installment per month.

In essence, this means that 134 core suppliers will become shareholders in Nezha Auto's parent company, Hezhong New Energy.

Earlier, on February 10 this year, various media outlets reported that at the 2025 Shareholder Communication Meeting, Hezhong New Energy revealed its ongoing E-round financing plan, aiming to raise between RMB 4 billion and RMB 4.5 billion, with the lead investor expected to contribute approximately RMB 3 billion.

On March 20, Nezha Auto held the 2025 Thailand Dealer Conference in Bangkok, Thailand, and inked four significant strategic agreements with partners in finance, after-sales, and production.

Overall, Nezha Auto will secure a credit line of 10 billion Thai baht (approximately RMB 2.15 billion) from NLTH (Thailand) Finance, along with spare parts system funding of 500 million Thai baht (approximately RMB 100 million) from Hong Kong Solor Technology.

With the backing of its partners, Nezha Auto aims to establish a strong presence in Thailand, continuing to receive high-quality production support from local contract manufacturer BGAC for the next five years. The company plans to commence localized production of its second model, the Nezha X, in July this year and will set up three battery preparation centers in collaboration with KINTAI Jingtai Automotive Industry, covering the entire country.

Nezha Auto's business strategy for the Thai market in 2025 is to target retail sales of over 10,000 units, aiming to rank among the top 2 in new energy vehicle sales in Thailand.

Furthermore, Nezha Auto and BGAC are jointly committed to establishing Thailand as Nezha Auto's export hub for Southeast Asia, with an anticipated future export capacity of 50%, further bolstering Nezha Auto's production and supply capabilities in the Southeast Asian market.

The support from renowned Thai financial institutions and the effective debt-to-equity swap with suppliers signify that Nezha Auto's self-rescue measures are being actively and effectively implemented, marking a significant turnaround for the company. However, whether it can fully overcome its challenges and realize its operational development blueprint for the next three years remains to be seen.