Shanghai (ZXZC)- Chinese EV startup BYTON has applied for the registration of a new technology company dubbed “Shengteng”, which is likely to snag an operating license at the end of August, according to a local media outlet.

The automaker attempts to raise 2 billion yuan ($289,038,220) to speed up the volume production of the M-Byte, the startup's first production model, according to the local media source. FAW Group and other shareholders are proactively pushing ahead with the new round of fundraising.

Responding to a request from local media outlets, BYTON declined to comment.

(M-Byte, photo source: BYTON)

BYTON said in late June it will suspend most operations in Chinese mainland from July 1 to conduct a firm reorganization after being battered by the COVID-19 pandemic. From then on, the Nanjing-headquartered startup will have not more than 100 employees remaining at its China facilities, while its offices in North America and Germany have initiated bankruptcy filing processes in accordance with local laws.

The number of employees on duty has so far increased to around 130 from 100 during the past two months, according to the same media source. Currently, the company is making the third round of enrollment expansion with the employee number expected to reach 200.

“BYTON is ready to resume operations at full force in September 2020 and intends to go public in the future,” according to the local report, citing people briefed on the matter.

Based on the restructuring plan given by FAW Group, BYTON's Nanjing factory will serve as the contract manufacturer of a Hongqi-branded BEV model coded-name “EQ320”. Under the investment agreement with FAW, the Nanjing plant will spare 50,000 units from its 150,000-unit annual capacity for the production of the “EQ320” BEVs.