Tuesday, 8 July 2025
28 C
Singapore
28.7 C
Thailand
18.8 C
Indonesia
28.6 C
Philippines

Neta Auto gears up for Hong Kong IPO, secures significant cornerstone investment

Neta Auto, a leading Chinese EV maker, is preparing for its Hong Kong IPO with over US$2.97 billion in cornerstone investment.

You might find it interesting to know that Neta Auto, a prominent Chinese electric vehicle (EV) manufacturer, has recently initiated the preparatory steps for its initial public offering (IPO) in Hong Kong. This significant move, reported by the Chinese tech media outlet First Electric, was initiated in the last quarter of the previous year. Remarkably, the cornerstone investment for this venture has surpassed an impressive 20 billion RMB (approximately US$2.97 billion).

Robust financing rounds fuel Neta Auto’s growth

As you explore further, you’ll discover that successful financing rounds have marked Neta Auto’s journey to this point. The company has completed no less than 10 financing rounds, accumulating a disclosed total exceeding 20 billion RMB. This noteworthy achievement includes investments from influential backers such as Deep Creation Investment, CRRC Capital, CATL, and 360. Most recently, on August 30, Neta Auto raised a substantial 7 billion RMB (over US$1 billion) in a Crossover financing round.

Neta Auto gears up for Hong Kong IPO, secures significant cornerstone investment - 2
Image credit: hozonauto.com

Employee bonus controversy and sales performance

Amidst these financial successes, Neta Auto has faced its share of challenges, including recent online rumours concerning the delay of employee year-end bonuses. Initially promised for the first week after the holiday season, there was a delay, sparking concerns among the workforce. In response to these rumours, Neta Auto’s CEO, Zhang Yong, clarified that the 2023 year-end bonuses were contingent on performance evaluations. He assured that the final distribution of these bonuses, based on annual performance coefficients, would be completed and distributed in March.

In terms of sales, Neta Auto delivered 10,032 vehicles in January 2024, of which 2,821 were sold overseas. This achievement follows a period of reflection by Zhang Yong on the decline in sales during 2023. He attributed this downturn to several factors, including the high pricing of new products, delayed adjustments in the latter half of the year, missed opportunities, and outdated strategies. This honest assessment underscores the challenges faced by the EV industry and the need for constant innovation and adaptation.

Conclusion

In conclusion, Neta Auto’s move towards a Hong Kong IPO, bolstered by significant cornerstone investment, marks a crucial phase in the company’s expansion. Despite the hurdles, including the controversy over employee bonuses and a dip in sales, Neta Auto’s strategic financial planning and continued product development signal a robust future trajectory in the competitive EV market.

Hot this week

vivo introduces X200 FE, its first compact telephoto flagship smartphone

vivo launches the X200 FE in Singapore, a compact flagship with telephoto imaging, ZEISS optics, and powerful performance in a lightweight body.

Cloudflare blocks AI crawlers by default to protect online content

Cloudflare blocks AI crawlers by default to protect online content, giving creators more control and a new "Pay Per Crawl" option.

Figma files for IPO and plans to boost AI investment

Figma files for IPO under the ticker “FIG” and plans to boost AI investment, even if it slows short-term efficiency.

Secretlab teams up with Genshin Impact for first Liyue-inspired chair and desk collection

Secretlab reveals its first Genshin Impact collection, which includes Liyue-themed chairs and a desk inspired by Xiao, Ningguang, and the Lantern Rite.

Mimecast announces new solution to strengthen data compliance in Google Workspace

Mimecast expands compliance tools for Google Workspace users with AI-powered data governance and monitoring across Chat, Drive, Meet and more.

Huawei defends AI model amid claims of using third-party code

Huawei denies using third-party models to train its latest AI, despite claims from a whistleblower and rising competition in China's tech sector.

AI will make cyber defence harder unless you think like a hacker

Cyber experts warn that AI is making cyber attacks smarter, urging firms to adopt a hacker mindset and prepare through simulations.

Persona 5: The Phantom X finally arrives in Southeast Asia

Persona 5: The Phantom X launches in Southeast Asia with a fresh story, fan-favourite characters, and a special event running until July 31.

TikTok may dodge US ban with new app and ownership deal

TikTok could avoid a US ban with the launch of a new app on September 5 and a possible sale to non-Chinese investors, including Oracle.

Related Articles

Popular Categories