Is HiPhi Really Reviving? Two Prospective Investors Still in Negotiations

Gasgoo Munich - Gasgoo learned on Jan. 22 that the bankruptcy restructuring case of Human Horizons, HiPhi's parent company, has hit a critical milestone. The interim administrator officially released a draft restructuring plan to all creditors, mapping out specific paths for debt repayment, resumption of production, and after-sales support.

The draft reveals that two prospective investors are still in negotiations—one discussing investment agreements and the other exploring investment schemes. Although six companies initially expressed interest, some have since withdrawn or failed to pay required deposits.

Image source: HiPhi

The debt repayment scheme has become a focal point. According to the draft, employee claims, tax arrears, social security debts, and beneficial debts will be fully settled in cash using investment funds—totaling approximately 630 million yuan, per previous announcements. Secured claims will be prioritized up to the value of the mortgaged assets, with any excess converted into unsecured claims.

For unsecured claims, amounts of 30,000 yuan or less per creditor will be fully repaid in cash. For amounts exceeding that threshold, creditors can choose between pro-rata cash repayment or conversion into equity. Subordinated debts will not be repaid.

Data indicates there are five secured creditors with claims totaling about 1.156 billion yuan, while unsecured creditors number 2,462, with claims reaching as high as 12.476 billion yuan.

Under this proposal, more than 80% of the debt will be converted into equity in the new company.

Founded by former SAIC Motor Vice President Ding Lei in 2019, HiPhi targeted the luxury electric vehicle market. Its debut model, the HiPhi X, launched in September 2020 priced between 570,000 and 800,000 yuan. The company fell into an operational crisis in 2023, leading its parent, Human Horizons (Jiangsu) Technology Co., to file for bankruptcy in August 2024. In April 2025, the Yancheng Economic and Technological Development Zone Court ruled to substantially merge and restructure Human Horizons alongside 51 other companies.

Regarding prospective investors, market rumors previously suggested that Canadian EV company EV Electra planned to invest $1 billion in the restructuring with the aim of gaining a controlling stake.

On May 22, 2025, a new entity named "Jiangsu HiPhi Automotive Co., Ltd." was registered in Yancheng, with Human Horizons holding a 30.2% stake and EV Electra holding 69.8%. Jihad Mohammad, founder of EV Electra, serves as chairman, while Ding Lei is absent from the management list.

Jihad Mohammad previously confirmed his participation in the restructuring on his personal social media account, though he emphasized that legal restrictions prevented him from disclosing details.

Since the released draft does not specify the investors' identities, it remains unclear whether Jihad Mohammad is still on the list of investors.

Meanwhile, signs of life at HiPhi's operations have emerged. Just a week before the new joint venture was established, an environmental impact assessment report posted on the Yancheng Economic and Technological Development Zone website revealed the launch of the "Yueda Kia Plant 1 Intelligent Green Technology Upgrade Project" at the site of HiPhi's former Yancheng factory. With a total investment of about 17.96 million yuan, the project has a designed annual capacity of 150,000 units and covers the HiPhi X, Y, and Z models. Construction is expected to be completed by October 2025.

According to the administrator's announcement, the first creditors' meeting for the substantive merger restructuring of Human Horizons and its 51 affiliates is scheduled for July 31, 2025.

However, no further information emerged until the disclosure of this draft restructuring plan.