NIO Auto Founder Fang Yunzhou and Former CEO Zhang Yong Hit with $160M Equity Freeze, Named Dishonest Debtors

According to information from Tianyancha, Tongxiang Hechuang Deli II Enterprise Management Consulting Partnership (Limited Partnership) has added two new equity freezing records. Fang Yunzhou, founder of NIO Auto (Hozon Auto), had RMB 116 million worth of his equity frozen, while former CEO Zhang Yong had RMB 855,000 frozen. Both freezes have a three-year term and represent the single largest equity freezes ever imposed on each individual. Combined with the previously frozen RMB 17.67 million in equity held by Shanghai Zheao Industrial Co., Ltd., the total amount of frozen equity linked to the two individuals now exceeds RMB 133 million. Fang Yunzhou and Zhang Yong were previously listed as discredited被执行人 (dishonest judgment debtors) by the Changning District People's Court of Shanghai. Enforcement records dated March 13, 2026, indicate that both individuals, along with Yichun Langling Enterprise Management Consulting Center, failed to fulfill their obligations stipulated in effective legal documents despite having the ability to do so; their fulfillment status remains "completely unfulfilled." Fang Yunzhou is associated with 66 companies, 64 of which remain active. Zhang Yong is linked to 37 companies, 33 of which are still operating. Both individuals are also involved in multiple enforcement cases, with a combined enforcement amount exceeding RMB 71.74 million. Hozon New Energy Automobile Co., Ltd.—the parent company of NIO Auto—reported cumulative net losses of RMB 18.3 billion between 2021 and 2023. On June 12, 2025, the Jiaxing Intermediate People's Court ruled to accept Hozon New Energy’s bankruptcy reorganization application. NIO Auto ranked first among China’s emerging EV makers in 2022 with sales of 152,100 vehicles, but its sales have since declined continuously. Starting in October 2024, the company became embroiled in public controversies involving layoffs, salary cuts, and delayed payments to suppliers. In December 2024, Zhang Yong stepped down as CEO and assumed an advisory role, while Fang Yunzhou took over as CEO and issued a company-wide letter outlining goals to achieve positive gross margins in 2025 and overall profitability in 2026. However, these reform efforts had not yet yielded results before the company entered bankruptcy reorganization proceedings.