Can Nezha Automobile, which has resumed work and production, be reborn? Why did the red leader suddenly become calm?

After experiencing a series of disturbances, Nezha Automobile has set a delivery target of January 2025.

The target is 1,000 units.

The prerequisite for resuming production is that "a new round of financing is in place." It is not clear where the money comes from. In short, whether it can be reborn depends on the continuous delivery data in the first quarter of this year. However, what exactly caused Nezha Automobile to suddenly encounter large-scale layoffs and suspend production at the Tongxiang factory? I believe this is the question that many car enthusiasts are most interested in. It’s just that few media talk about it.

Nezha Automobile lost more than 18.3 billion in three years! Maybe this is the root cause.

Some people believe that Nezha Automobile is encountering the "black hands" of some organizations. The author does not agree with this view. Because neither banks nor other investors will maliciously attack Nezha Automobile, the so-called "adding insult to injury" is unreasonable; as an investment institution, there is no reason to want to bring down the company it invests in, otherwise wouldn't it be making trouble for itself? ? So statements like this are completely illogical.

But if it is evaluated by "timely stop loss", it should be reasonable.

NezhaU

"Loan withdrawal" is a very heavy straw.

At the end of 2024, there were media reports that Nezha Automobile had experienced concentrated loan withdrawals in a short period of time. This was a very serious problem; it could even be called the "last straw."

What is "loan extraction?"

In short, the bank's behavior of withdrawing part or all of the loan early during the loan contract period is called "loan extraction." For example, a company borrows 2 billion from the bank and pays it in installments on a one-year cycle; the bank stops the loan before it expires. , this is the concept of loan extraction. And if the company needs this loan for its normal operations, then once the bank withdraws the loan, the company will definitely be unable to operate normally - it will not be able to pay employees or make payments to suppliers.

The only result is to stop production or wait for bankruptcy. Of course, this does not refer to Nezha cars, it is just an example.

Under what circumstances will the bank "extract loans"?

Of course, the bank will evaluate the company. If the company's operating conditions are poor and continue to deteriorate, or the loan funds are used in violation of regulations; the loan company has a credit crisis; or there are changes in policies in related industries that affect the bank's development prospects for the company. expected. Then the bank will choose to "extract loans." Of course, if the bank itself has operating problems, it will also do so. Therefore, "loan withdrawal" is likely to be the cause of Nezha Auto's crisis. But what is more worthy of self-reflection is why companies are "extracted for loans." Whether there are problems in the operation or management of the company, whether the brand and product planning ideas are correct, and whether there is a response plan in the face of ever-increasing competition, these all directly affect funds. key factors.

Why has Zhou Hongyi, the "Red-coated Leader", become so quiet recently?

You must know that one of the major shareholders of Nezha Automobile is Zhou Hongyi, who invested only 2 billion yuan in Nezha Automobile! But when faced with the right to increase capital two years ago, it gave up. Perhaps Zhou Hongyi's views on Nezha Automobile have already changed. Zhou Hongyi now holds 9.12% of the shares, so he can still enter freely.

As for the recent sudden calm, it is not difficult to understand, because Zhou Hongyi has tried hard, but has achieved nothing.

Zhou Hongyi has become one of the most watched people at many auto shows in 2024; the various "flower activities" he performed at the auto shows are very eye-catching, but objectively they have not brought any positive impact on Nezha Auto's brand sales. Ground effect. Even the name-changing live broadcast in collaboration with Zhang Yong ended in a rather embarrassing ending.

As a shareholder, Zhou Hongyi has not been able to dominate the decision-making of Nezha Auto. If he is not optimistic about some of Nezha Auto's decisions at this time, why bother with such a brand? The current development of Nezha Auto should not have much to do with Zhou Hongyi. Zhou Hongyi may just need an appropriate opportunity.

Let’s take another look at Nezha Automobile’s sales data.

The data of Nezha Automobile in the third quarter of 2024 is really regrettable, namely: 6002, 1500, 237 vehicles, and the sales volume in December was only 237 vehicles. This is obviously the result of failure to produce normally.

After the resumption of work and production, some of the backlog of orders should be digested, and sales are expected to rebound.

However, the planned production capacity is still very limited, and the magnitude of the rebound will not be large.

So let’s wait and see. Give Nezha Automobile one to two quarters, and then there will be a relatively clear answer. As for Zhou Hongyi's opinion that the name should be changed, there is no need to discuss it anymore. Changing the name now may not have an overly positive effect. Hezhong New Energy should have been more cautious when naming the car. I wonder how Zhou Hongyi, Fang Yunzhou and Zhang Yong will feel when they see the current Leapmotor, Ideal and NIO cars. "Nezha in the sea" will eventually It still needs to be conquered, and the name is very important.