On August 11, Hezhong New Energy Automobile Co., Ltd., a subsidiary of Nezha Auto, was designated as a dishonest entity by the People's Court of Haizhu District, Guangzhou, for breaching the property reporting regulations and failing to meet all its legal obligations. Prior to this action, the company had already faced enforcement proceedings for a sum of RMB 57,594 stemming from a dispute over an exhibition contract.