(Yicai) July 1 -- Hozon New Energy Automobile, the owner of the Neta electric vehicle brand undergoing bankruptcy reorganization, has started a pre-recruitment process for potential investors, prioritizing those who can propose feasible plans for resuming production.

Hozon Auto will prioritize investors willing to provide financial support for restoring factory operations, which have been halted since November, the Shanghai-based carmaker announced yesterday. Preferred will be investors prepared for the funding to be used for restructuring investment, it added.

Prospective investors must include an investment plan, a plan for resuming production, an employee placement plan, an operational plan for the company post-restructuring, and others in their investment proposals, Hozon Auto noted.

Neta's production equipment is working normally, Hozon Auto pointed out, adding that the brand has more than 400 employees, including its management team and core technical personnel, making it capable of resuming operation.

Hozon Auto officially entered bankruptcy proceedings on June 19, CCTV News reported on June 20.

According to rumors circulating online in May, Japanese car giant Toyota Motor was considering acquiring Neta. However, Xu Yiming, the head of brand communication at Toyota Motor China Investment, and executives from Neta told Yicai the information was false.

Neta's first mass-produced model rolled off its production line in July 2018. Its deliveries topped 152,000 units in 2022, ranking first among Chinese EV startups. However, its sales have since declined, dropping to 85,900 units in the first 10 months of last year before production was suspended.

Editors: Tang Shihua, Martin Kadiev