(Yicai) Feb. 20 -- A labor supplier to HiPhi, a Chinese maker of luxury electric vehicles, has laid off more than 100 staff who worked at the carmaker’s factory. The workers were let go yesterday, Yicai learned from internal company documents.

The layoffs come as media reports said Shanghai-based HiPhi is suspending production for six months, with immediate effect. Its frontline sales staff in many regions were still livestreaming on social media platforms yesterday, nevertheless, attempting to interest viewers in HiPhi cars.

Earlier rumors said HiPhi had defaulted on supplier payments and stopped production. On Jan. 2, the company rebutted a rumor that it had ceased all work and shipments and new project development had stopped. The firm said it was operating normally, while development, production, marketing, and deliveries were also progressing as usual.

Human Horizons Technology, which owns the HiPhi brand, was set up in 2017. Ding Lei, its founder and chairman, was an executive at auto giant SAIC Motor and the vehicle arm of video platform Leshi. HiPhi has never raised funds publicly, but has three models priced at up to CNY800,000 (USD111,150) apiece, making them the most expensive Chinese EVs.

Last June, Human Horizons and Saudi Arabia's investment ministry signed a USD5.6 million deal to form a joint venture, with the intention of collaborating on vehicle research, design, production, and sales. Human Horizons has not disclosed the partnership's progress.

Editor: Martin Kadiev