NETA Auto suffered a considerable loss of 4.2 bn within two years

Automotive Author: Beibei Wei Editor: Xiangqun Ji Jul 01, 2022 11:19 AM (GMT+8)

Neta Auto had an accumulated loss of more than CNY 4.2 billion during the past two years. 360 Company announced a 3.532% transfer of its equity in Neta Auto with CNY 0 transfer consideration on June 26.

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360 Private Equity Fund (Chinese:三六零私募基金), a wholly-owned subsidiary of 360, registered approximately CNY 80 million (USD 12 million) in Hezhong New Energy Automobile (also referred as "Neta Auto")(Chinese: 合众新能源).

In addition, 360 plans to transfer the capital, corresponding to the 3.532% equity of Neta Automobile, to two limited partnerships, Jiaxing Xinzhu Equity Investment Partnership (Chinese: 嘉兴鑫竹股权投资合伙企业) and Shenzhen Jiangchengguang Enterprise Management Center (Chinese: 深圳精诚开阔企业管理中心) with CNY 0 transfer consideration.

Neta Automobile (Chinese: 哪吒汽车), an electric vehicle (EV) brand owned by the Chinese automaker Hozon Auto (Chinese: 合众汽车), was launched in October 2014 with a registered capital of nearly CNY 2.264 billion. 

According to information and data revealed by 360 in the announcement, at the end of 2021, Neta Auto's total assets and total liabilities were CNY 13.7 billion and CNY 8.3 billion respectively. Its operating income was nearly CNY 5.7 billion and its net profit was CNY 2.9 billion in 2021.

Despite the positive development trend and increased sales volume of Neta Auto, the losses are also exacerbating. During the first half of 2021, Neta Auto cumulatively loses nearly CNY 690 million, which suggests that the loss will expand rapidly in the second half of the year. In the past two years 2020 and 2021, the cumulative loss of Neta Auto has exceeded CNY 4.2 billion.

Upon the completion of the transfer, 360 still holds an 11.43% stake in NETA Auto. Two parties will maintain their cooperation and communication in the fields of network security, and intelligent driving technology development.