Jul 21, 2022

(Yicai Global) July 21 -- Hozon Auto, the owner of Chinese electric vehicle brand Neta or Nezha which is mulling a listing in Hong Kong, has closed its CNY3 billion (USD443.7 million) Series D3 fundraiser. The financing round attracted investors including state-backed Shenzhen Capital Group, Shenzhen-based Qianhai Fund of Funds, and Hongtai Aplus, a venture capital firm under the renowned Chinese entrepreneur Yu Minhong, the Zhejiang province-headquartered car company said in a statement on its website today. The funds will be used for research and development, technological innovation, capacity expansion, and to replenish working capital, the firm added. Hozon bagged CNY10 billion (USD1.5 billion) through the entirety of its Series D round. The new energy vehicle manufacturer will speed up finishing its stockholder reforms in the future, it said. Hozon is planning to go public on the Hong Kong Stock Exchange, Yicai Global learned. One of the company's major shareholders has turned off the taps. Chinese cybersecurity giant 360 Security Technology said on June 26 that it has given up its right to further inject CNY1 billion into Hozon after investing CNY1.9 billion in it earlier. Beijing-based 360 Security is the third-largest shareholder of the auto firm with its 11.4 percent stake. Hozon has claimed that 360 Security transferred its right to related parties of Hozon's management to improve the company’s governance structure. Founded in 2014, Hozon debuted its NEV brand Nezha in 2018. In the first half of this year, the brand delivered more than 63,130 vehicles, almost tripling from a year ago, according to today's statement. Pre-sales of its latest electric sedan, the Nezha S, have begun with expected deliveries in the fourth quarter. Hozon is not profitable yet, according to data disclosed by 360 Security. Hozon's net loss more than doubled to CNY2.9 billion last year from 2020 while its revenue more than quadrupled to CNY5.7 billion, the shareholder said. Editors: Emmi Laine, Xiao Yi