HiPhi Announces Restructuring Plan: Over 80% of Debt Converted to Equity, Two New Investors in Talks

On January 21, the provisional administrator of Human Horizons—the parent company of HiPhi—released a draft restructuring plan outlining arrangements for debt repayment, resumption of production, and after-sales service guarantees. According to the draft, approximately RMB 630 million in employee-related claims and tax obligations will be fully repaid in cash. For ordinary unsecured creditors, amounts up to RMB 30,000 per creditor will be fully paid, while amounts exceeding this threshold may be settled either through proportional cash repayment or debt-to-equity conversion. The disclosure revealed that there are five secured creditors holding a total of RMB 11.56 billion in secured claims, and 2,462 ordinary unsecured creditors with combined claims amounting to RMB 124.76 billion. Over 80% of these debts will be converted into equity in the newly restructured Human Horizons entity. Currently, two potential investors have entered into agreement negotiations or discussions regarding investment proposals. Of the six previously identified interested parties, some have withdrawn due to failure to pay the required deposit. HiPhi faced a crisis in 2023, its parent company filed for bankruptcy in August 2024, and the court approved a consolidated restructuring plan in mid-2025. An earlier revival plan involving Lebanon-based EV Electra stalled due to the latter’s failure to make required payments.