The premium electric car brand HiPhi, part of Chinese manufacturer Human Horizons, is poised for a significant restructuring following a potential financial infusion of up to one billion US dollars. While details remain somewhat unclear, recent developments suggest a path forward for the struggling brand.
A recent official announcement indicates that HiPhi may receive a capital injection from the iAuto Group, an automotive platform registered in the U.S. state of Delaware. The iAuto Group is described as “focused on enhancing the value of promising automotive firms.” This injection is expected to enable HiPhi to resume production.
See also: HiPhi Reportedly Secures New Investment, Plans to Resume Operations and Production
The cooperation agreement between HiPhi and iAuto Group includes elements such as “equity merger and acquisition, technical cooperation, brand, and international sales alignment,” according to a cryptic press release. Notably, HiPhi’s models are already listed on the iAuto website.
While the press release mentions that financing has been secured “from institutional investors,” specific names are not provided. The announcement, intriguingly, was sent from Hong Kong, where iAuto’s Asian headquarters are located. This raises questions, as earlier rumors suggested HiPhi might receive funding from an undisclosed investor in Hong Kong, yet the iAuto Group is officially based in Delaware. However, it’s worth noting that Delaware is known for hosting many letterbox companies due to favorable tax legislation.
See also: China’s Changan Auto in Talks to Acquire Human Horizons, Hiphi EV Maker
Founded in 2023 by Jack Yeung, the iAuto Group is led by industry veterans with extensive experience in the financial sector. Yeung, formerly a Managing Director at Morgan Stanley, led the “China Automotive Sector” team. Simon Cheng, co-founder and CFO of iAuto, brings expertise as an investment expert and industry analyst focused on China. Stephanie Yeung, now CSO of iAuto, previously worked for Itero Capital.
While the press release does not feature direct statements from iAuto or HiPhi representatives, iAuto has chosen Human Horizons as its strategic partner in China “because of Human Horizon’s proven innovation in design and technology. Human Horizons fully believes in and recognizes iAuto’s mission and values,” as stated by iAuto.
