Shanzi High-Tech (000981.SZ) said it has no equity-control relationship with Zhejiang Taichi Shenglian Enterprise Management Partnership (Limited Partnership) and has not directly or indirectly participated in the bankruptcy restructuring investment of Hozon New Energy Automobile Co., Ltd., the parent of Neta Auto. The company said its controlling shareholder’s plan to invest through controlled entities remains at the intention stage and faces substantial uncertainty over procedures and approvals. Taichi Shenglian emerged as the proposed restructuring investor at Hozon’s fourth creditors’ meeting, planning to invest 3 billion yuan ($447.2 million) for approximately 70.62% of Hozon. The investment would allocate 1.167 billion yuan to retained-asset claims, bankruptcy expenses and restructuring costs, with 1.833 billion yuan designated as working capital for production, supply-chain and after-sales restoration. The proposal envisages restarting Neta X production for overseas markets, expanding into Asia, Africa and Latin America, and eventually preparing for an IPO. Taichi Shenglian is owned 99.9667% by Zhejiang Shanzi Holdings and 0.0333% by Zhejiang Shanzi Yuxu Technology, entities ultimately controlled by Shanzi High-Tech chairman Ye Ji and board-office head Yu Shuxin, respectively. The structure has fueled speculation about an off-balance-sheet connection, even as the listed company seeks to separate itself from the investment. Hozon’s restructuring still requires creditor approval and court ratification. Shanzi High-Tech’s weak underlying profitability, governance issues and Ye’s legal and spending-restriction problems add to concerns about the plan’s execution.