Shanghai (ZXZC)- 360 Security Technology Inc. (“360 Security”) announced on June 27 its wholly-owned subsidiary, 360 (Beijing) Private Equity Management Co., Ltd. (“360 Private Equity”) intended to transfer the registered capital of around 79.994 million yuan ($11.965 million) it holds in HOZON Auto, equivalent to 3.532% stake in the NEV startup.

According to 360 Security's announcement, 360 Private Equity has not actually paid for the aforesaid registered capital.

The equity interest will be transferred to two limited partnership companies: Jiaxing Xinzhu Equity Investment Partnership and Shenzhen Jingchengkaikuo Enterprise Management Center, at a consideration of zero yuan.

NETA V; photo credit: HOZON Auto

Upon completion of the equity transfer, 360 Security will still control 11.4266% stake in HOZON Auto, corresponding to a registered capital of around 258.793 million yuan ($38.708 million).

360 Security said its board of directors had agreed to waive the special rights of redemption, pre-emption, and investment addition to support HOZON Auto in shareholding system reform.

360 Security claimed in October 2021 it would invest 2.9 billion yuan ($433.755 million) in HOZON Auto. After completing the transaction, the cybersecurity giant would become HOZON Auto's second largest automaker by obtaining a 16.594% stake.

According to the latest statement, 360 Security had injected 900 million yuan ($134.614 million) into HOZON Auto before May 31, 2021. In October of the same year, the company's wholly-owned subsidiary, Tianjin Qirui Tiancheng Equity Investment Center (Limited Partnership), poured 1 billion yuan ($149.571 million) into the D1 round of HOZON Auto. Thus, up until now, there still have been 1 billion yuan remaining to be paid.