Countdown to Resumption of Operations

Author | Wang Lei

Editor | Qin Zhangyong

HiPhi Motors is staging a comeback with renewed vigor.

Today, Jiangsu HiPhi Motors Co., Ltd., with a registered capital of $143 million (approximately RMB 1.03 billion), was quietly established. Its address is the former site of HiPhi Motors—No. 69, Donghuan Road, Yancheng Economic and Technological Development Zone.

Moreover, the company is a joint venture between EV Electra Ltd. and Human Horizons (Jiangsu) Technology Co., Ltd. Judging by the shareholders and location, this newly formed Jiangsu HiPhi Motors Co., Ltd. appears to be the new vehicle for HiPhi Motors' operational resurgence.

However, the legal representative is no longer Ding Lei but Jihad Mohammad, the CEO of a Lebanese electric vehicle startup.

Previously, HiPhi Motors signed a $5.6 billion cooperation agreement with Saudi capital, but the funds have yet to materialize. Now, with the backing of Middle Eastern capital, the establishment of this new company marks a crucial step towards HiPhi Motors' 'resurrection'.

As of now, Human Horizons has not issued any official response.

01

Change of Control?

HiPhi Motors has returned from the brink with remarkable speed.

According to Tianyancha, Jiangsu HiPhi Motors Co., Ltd.'s business scope encompasses road motor vehicle production, automotive parts research and development, engineering and technology research, and experimental development, among other fields.

The controlling shareholders are EV Electra Ltd., a foreign-funded enterprise, and Human Horizons (Jiangsu) Technology Co., Ltd., the former parent company of HiPhi Motors.

Last August, due to insolvency, Human Horizons (Jiangsu) Technology Co., Ltd., the parent company of HiPhi Motors, filed for bankruptcy reorganization. In terms of assets and liabilities, the consolidated book value of assets of the 52 companies within the Human Horizons system was 5.983 billion yuan, with book liabilities of 15.781 billion yuan. During the pre-reorganization period, creditors declared a total of approximately 22.8 billion yuan in creditor's rights.

In April this year, the Yancheng Economic and Technological Development Zone People's Court issued a ruling approving the consolidation and reorganization of Human Horizons Jiangsu and its 51 affiliated enterprises, fighting for a 'rebirth' opportunity for HiPhi Motors. This marks the first attempt in the domestic new energy vehicle industry to use judicial means to rescue insolvent new-force automakers.

Subsequently, Jiangsu Yueda Automobile Group and Yancheng Dongfang Investment and Development Group, both shareholders of Human Horizons, were designated as co-benefit debt investors, injecting 300 million yuan to ensure HiPhi Motors' after-sales service and supply chain operations.

Now, in less than two months, the gears of HiPhi Motors' fate have quietly begun to turn.

While HiPhi Motors appears to be on the path to resurrection, the shareholding structure of Jiangsu HiPhi Motors Co., Ltd. indicates that things are not so straightforward.

Although the company is jointly owned by EV Electra Ltd. and Human Horizons (Jiangsu) Technology Co., Ltd., their shareholding ratios are 69.8% and 30.2%, respectively, with EV Electra holding nearly 70% of the equity. The chairman and legal representative of the company have also become Jihad Mohammad, the founder of EV Electra.

It's worth noting that in the information column for the subscription period of registered capital, EV Electra's subscription date is only until the end of this year, while Human Horizons (Jiangsu) Technology Co., Ltd.'s subscription date is extended to mid-2030.

According to Tianyancha data, Ding Lei, the former chairman and CEO of HiPhi Motors, is not listed among the senior executives of Jiangsu HiPhi Motors Co., Ltd.

Various indications suggest that with the entry of Middle Eastern capital into HiPhi Motors, control of the company has likely shifted hands.

02

Lebanese Buyer

EV Electra is an electric vehicle startup from Lebanon.

According to its official website, the company was founded in 2017, and its CEO is Jihad Mohammad, the current legal representative of Jiangsu HiPhi Motors Co., Ltd. He is also the first local electric vehicle manufacturer in Lebanon.

This electric vehicle startup was originally a division of 'Jihad Mohammad Investment', an investment company founded by Jihad Mohammad that initially focused on electric vehicles and automotive manufacturing.

Later, it became an independent entity headquartered in Lebanon with offices in Canada, Italy, Germany, the Netherlands, and other locations, employing approximately 300 people.

Although EV Electra is an electric vehicle manufacturer, since its inception, there has been no detailed disclosure regarding vehicle mass production and sales. The first product, QuDS Rise, was originally scheduled for delivery to the market in 2022, but it has not yet gone into mass production.

Interestingly, EV Electra previously acquired the rights to the NEVS Emily GT project from a Swedish electric vehicle company (NEVS). NEVS Emily GT is a fully electric luxury sedan developed by former Saab engineers.

Now, when visiting the EV Electra website, one can see that HiPhi's three models are prominently displayed in the EV Electra family lineup, alongside two other models that are yet to be produced by EV Electra.

Moreover, from the EV Electra website, one can also navigate to HiPhi Motors' domestic website. Judging by the establishment of a new company between the two parties, HiPhi Motors and EV Electra have long established close ties.

The relationship between the two parties can also be gleaned from the tone of the official news released by EV Electra:

After acquiring HiPhi, EV Electra will elevate high-end electric vehicles to a new level. We will combine HiPhi's cutting-edge design with our vision for the future to bring a higher level of innovation, performance, and luxury experience.

According to EV Electra's description, it clearly states that it has acquired HiPhi Motors.

This also serves as a preview of HiPhi Motors' upcoming plans, which will likely maintain its ultra-high-end positioning, slightly differing from previous industry speculation about a shift towards the mass market.

Although EV Electra has emerged as the white knight for HiPhi Motors, given the size of this startup company, there are still many unresolved questions.

However, regardless, the involvement of genuine overseas capital will indeed help HiPhi Motors further extricate itself from difficulties. As for when it can truly 'resurrect' with full strength, that remains to be seen.