Nezha Auto Mired in Multiple Crises: Former CEO Zhang Yong Allegedly Stranded in UK, Subsidiaries Reduced to "Shell Companies"
Chinese New energy vehicle maker Nezha Auto is embroiled in controversy as multiple Chinese media outlets report that former CEO Zhang Yong, who stepped down in December 2024, has obtained a UK visa and remains overseas. Investigations reveal that over 20 companies linked to Zhang Yong, including Tongxiang Hechuang Deli Er and San Technology Consulting Partnerships, have allegedly engaged in asset stripping and debt evasion, leaving subsidiaries as empty entities.
Executive Exodus & Offshore Links
Zhang Yong resigned as CEO in December 2024 but retained an advisory role. Sources confirm he secured a UK visa prior to his departure and remains abroad. Corporate records show he holds ties to 23 companies, primarily registered in Jiangxi province, spanning sectors like business services and investment management.
Subsidiary Collapse
Data from Qichacha (a corporate registry platform) exposes severe financial decay. Nezha Zhike New Energy Automotive Technology Co., Ltd. shows no registered social security, housing fund, or property assets. Nezha Hezhi Auto Sales Service Co., Ltd. holds under 500 yuan
Former employees allege a systematic "split entities – transfer assets – isolate debts" scheme to concentrate resources in the parent company while abandoning subsidiary obligations.
Dealer Revolt
Over 20 dealers recently protested at Nezha’s Tongxiang factory, demanding compensation for operational losses since September 2024, prepayment of 2025 Q2-Q3 costs, refunds for undelivered vehicle subsidies and rebates, and restoration of after-sales services. Dealers claim they prepaid millions for vehicles that remain undelivered for six months, triggering bank loan defaults and customer lawsuits.
