Hanteng Auto may complete bankruptcy and reorganization soon, Great Wall Motors will take over

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Recently, some Chinese media reported that Hanteng Auto will complete bankruptcy and reorganization before April 25, and Hanteng Auto’s first-phase plant will also be sold to Great Wall Motors at a low price. Neither Great Wall Motors nor the relevant authorities of Shangrao City (the location of the Hanteng automobile factory) responded to the authenticity of the news.

Public information shows that Hanteng Automobile Co., Ltd. (i.e. Hanteng Auto) was established in November 2013, and its legal representative is Wang Gendang. It is jointly funded and established by Lantu Automobile Co., Ltd., Shangrao Hanteng New Energy Industry Center (Limited Partnership) and Shangrao Tengjun Technology Co., Ltd., with a shareholding ratio of approximately 61.6246%, 29.972% and 8.4034%, respectively. On April 11, Hanteng Autom underwent an industrial and commercial change, Shangrao Tengjun Technology Co., Ltd. withdrew, and the equity was taken over by Lantu Automobile Co., Ltd., and the shareholding ratio increased to 70.028%. The shareholding ratio of Shangrao Hanteng New Energy Industry Center (Limited Partnership) remains unchanged.

Hanteng Automobile is one of the six major vehicle manufacturers introduced by Shangrao(a city in Jiangxi Province China) Economic and Technological Development Zone, with a total local investment of 13.7 billion yuan and two bases with a total production capacity of 350,000 vehicles per year. Among them, the first phase has a total investment of 3.7 billion yuan and a production capacity of 150,000 vehicles; the second phase has a total investment of 10 billion yuan and a production capacity of 200,000 vehicles. Since Hanteng Auto employees broke the news in August 2020 that the company was in arrears of wages, the car company in Shangrao, Jiangxi has been troubled by news such as the suspension of wages due to arrears, the shutdown of the factory, and the mortgage of production equipment. In June 2021, Great Wall Motors WeChat official account suddenly announced that the Great Wall Motors vehicle and parts production base project was officially settled in Shangrao Economic and Technological Development Zone. So far, Great Wall Motors has completed the acquisition of the Hanteng Auto Phase II plant. Hanteng Auto executives said in an interview that Great Wall Motors only invested in the second phase of Hanteng Auto’s plant and the equipment in the factory, and did not participate in the reorganization of Hanteng Auto.

It is reported that since Hanteng Auto was in crisis, there have been many rounds of layoffs and voluntary resignation of employees. At present, there are only a few dozen employees who are still in the factory. “These are all people who are waiting for the company to pay compensation, and most of them are locals in Shangrao.” According to a person familiar with the matter of Hanteng Auto, although the company’s internal notice will complete the bankruptcy and reorganization before April 25, it does not clearly follow-up for existing employees.