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HiPhi May Resume Production at the End of April or Early May

April 30, 2024
in Technology
HiPhi May Resume Production at the End of April or Early May
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According to the car media “Electric Vehicle Field” citing informed sources, the first strategic investment from an investment institution in Hong Kong has officially arrived last week. The senior management of HiPhi admitted that they will officially announce news related to the “resurrection” at the end of April or early May.

According to reports, sources familiar with the current general operating conditions and able to contact senior executives of the company said that there are about 5-10 companies that have had discussions with HiPhi, spanning industries including automotive, finance, and real estate. Previously, HiPhi had frequent interactions with Changan Auto, but FAW Group has engaged in more in-depth discussions with HiPhi.

Insiders said, “The estimated progress between the two parties is that a framework agreement has been signed, similar to the one signed with Saudi Arabia in previous years.” The strategic investment from Hong Kong investment institutions at present aims to ensure that enterprises under HiPhi can start operating first before resuming formal production, playing a role of “warming up”.

The final agreement is likely to be reached with FAW, and the probability of both parties reaching an agreement is high,” said insiders. FAW has started due diligence on HiPhi in early April, aiming to fully understand the financial situation, legal relationships, and risk factors of HiPhi before acquisition.

After announcing a six-month shutdown on February 18, on February 27, HiPhi’s founder Ding Lei visited Changan Automobile in Chongqing and met with Changan Automobile’s chairman Zhu Huarong. Earlier this month, some netizens revealed that HiPhi had welcomed the “white knight,” Avita, and had reached a merger agreement with HiPhi. Subsequently, a spokesperson from Avita’s public relations department responded to rumors of “taking over HiPhi” by stating that the information was not true.

SEE ALSO: HiPhi Responds to Lawsuit from Faraday Future

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