HiPhi Team

HiPhi has recently received a strategic investment from a Hong Kong-based organization that will help it resume operations and production, which could happen in late April or early May, according to local media.

Avatr has approached HiPhi and may have struck a partnership deal, with the two now reorganizing their teams, according to local media.

HiPhi began production halt on February 18 -- the first working day after the Chinese New Year holiday -- sparking fears about its fate.

Ding Lei said that he was using old-fashioned business strategies and was no match for his counterparts from Internet companies. He also said that there have been companies expressing interest in HiPhi, including acquisitions and investments.

Employees will be paid as usual until February 18, and after March 15 only HiPhi employees in Shanghai will receive basic pay, according to local media.

Rumors on Chinese social media said HiPhi will lay off up to 20 percent of its workforce and up to 50 percent in some divisions.