Jia Yueting really wants to return home? It’s impossible

Faraday future (FF), far away from the other side of the Pacific Ocean, is frequently reported to have “returned home” earlier than its founder Jia Yueting.

 

According to media reports, Zhuhai SASAC may participate in the latest round of financing of FF, while Geely Group, Gree Group and HUAFA group are rumored to participate in the investment. In addition, it is reported that FF will soon be listed in the U.S. backdoor market, and Evergrande has participated in the listing financing negotiations.

 

As for the news of FF investment, relevant staff of Zhuhai SASAC responded to Qingliu studio, “we have no disclosure at present.” Another Zhuhai SASAC insider told Qingliu studio, “this matter is not clear at present.”. Evergrande responded to Qingliu studio by saying, “no participation, no investment.”.

Jia Yueting really wants to return home? It's impossible

According to the time weekly, the SASAC of Zhuhai once said that “the time and amount of investment in FF have not been determined”, “just chatted, but did not meet Jia Yueting.”.

 

Qingliu studio exclusively found that as early as April 2020, FF disclosed in an information that it had discussed cooperation with four local governments in China. According to the document, FF’s “business progress in China” includes: discussions and cooperation with four local governments are in progress, and preparations are being made for cooperation and consultation with another local government; discussions with China’s top foundry on the production and listing of FF 91, the first model of FF, in China; signing a memorandum of understanding with a large foundry and making good progress.

 

Qingliu studio combed the public information and found that in addition to Zhuhai, Zhejiang Deqing, Guangzhou and Hulunbeier, the local governments discussed cooperation with FF. Previous cooperation was accompanied by “taking land to build factories”, but the road of car building was bumpy and tortuous, and previous local government “cooperation” ended in failure.

 

Jia Yueting first came up with the idea of building a car, which can be traced back to 2014, when Jia Yueting came back from abroad and threw out a “see plan” like a riddle. According to the information of Qingliu studio, the FF system company founded by Jia Yueting was also founded in 2014.

 

At the beginning of the next year, the mystery was revealed, and LETV, which is still in the ascendant, held a car making conference to launch the ambitious plan of car making.

 

In August 2016, LETV holdings announced that it would invest nearly 20 billion yuan to build LETV ecological automobile super factory and automobile ecological town in Deqing Moganshan National Economic Development Zone, Huzhou City, Zhejiang Province. For this project, LETV invested 420 million yuan to acquire land in Deqing, Zhejiang Province twice in 2016 and 2017.

 

This is the first piece of land Jia Yueting got to build a car. The project officially started in December 2016, but since then, due to lack of funds, LETV has been in a state of shutdown.

 

In July 2017, the capital chain of LETV collapsed, and Jia Yueting left the United States to concentrate on building FF cars.

 

The debt burden and reputation puzzle did not affect Jia Yueting’s car making business. On the contrary, FF received investment from Evergrande at the end of 2017, and Jia Yueting got his second car making base accordingly.

 

In April 2018, Guangzhou Public Resources Trading Center announced that Ruichi intelligent automobile (Guangzhou) Co., Ltd. won a manufacturing land of about 601 mu in Nansha District of Guangzhou at a reserve price of 364.1 million yuan. Ruichi intelligent automobile (Guangzhou) Co., Ltd. is a joint venture between FF and Evergrande.

 

However, this “marriage” soon broke down because of Jia Yueting’s disposal of FF shares. In October 2018, a dispute broke out between FF and Evergrande. However, on the last day of December of that year, the two sides said they would shake hands and make peace again. As part of the “property division”, Nansha plot, which was intended to be a FF car manufacturing base, belonged to Evergrande.

 

FF is more and more stretched, limited by a large amount of funding gap, FF’s first mass production model ff91 has become the famous “ticket skipping king” among netizens, and has been unable to land.

 

In March 2019, FF announced that it would join hands with the ninth city of the game company( NCTY.US )The two sides set up a joint venture. According to the terms of the cooperation agreement, Jiucheng will inject US $600 million into the joint venture in three equal phases, and FF will provide the joint venture with relevant property rights and resources, including land use rights in China, as its production base.

 

On June 10 of that year, the ninth city announced that it had signed a memorandum of strategic cooperation consultation with the Development Leading Group Office of ShaErQin Industrial Zone in Hohhot Economic and Technological Development Zone. ShaErQin Industrial Zone in Hohhot will provide no less than 5000 mu of land supply and 1.5 billion yuan of capital support, while Jiucheng and its subordinate enterprises will contribute no less than 500 million yuan.

 

If the financing is established, Jia Yueting will get a third car building plot. However, in September 2019, according to media reports, an investment promotion staff member of Hohhot Economic Development Zone said that the two sides had only had an oral meeting in June and had no further contact, while the previously reached memorandum was only valid for three months.

 

The house leaks every night. On November 28, 2019, the natural resources and Planning Bureau of Deqing County, Zhejiang Province announced that many pieces of land in Zhejiang Deqing Moganshan high tech Zone, owned by LETV eco car (Zhejiang) Co., Ltd., had been withdrawn by the local government due to long-term shelving. This means that Jia Yueting has no land to build cars in China.

 

As with the land acquisition mentioned above, there is no cooperation between FF and the ninth city. According to the investment conditions of the ninth city, the premise of funding to FF includes FF finding a land asset. With Jia Yueting losing his last piece of land, it is still doubtful whether the joint venture project between FF and the ninth city can be implemented.

 

Now, according to media reports, FF may establish a “domestic production base” in Zhuhai, and Geely may gradually put into production as a partner. If the financing is successful, Jia Yueting may take the third piece of land he used to build cars.

 

It is worth mentioning that Evergrande can still be found after equity penetration in this Zhuhai car building.

 

At present, FF has established Fafa automobile (Zhuhai) Co., Ltd. in Zhuhai on December 14, 2020. The registered capital of the company is RMB 250 million. The company is wholly owned by FF Hong Kong holding limited, a Hong Kong company established in January 2019. Jia chentao is the legal person and executive director of the company. He also serves as the supervisor of LETV eco automobile (Zhejiang) Co., Ltd.

 

Qingliu studio announced that through the Hong Kong company search, it can be seen that the director of FF Hong Kong holding Limited is Wang Jiawei, Jia Yueting’s nephew, and the shareholder is smart Technology Holdings Ltd. after the penetration of the company, it is FF intelligent mobility Global Holdings Ltd (formerly known as smart King Ltd), which is jointly held by Jia Yueting and Evergrande. The ownership structure was formed after the “property division” of FF and Hengda in 2018.

 

In October 2020, FF chief executive Bi Fukang said that FF plans to go public through a reverse merger with a special acquisition company (SPAC). According to the information recently disclosed by the news agency, the listed company “backdoor” by FF is property solutions acquisition Corp( PSAC.US )。 Qingliu studio noted that property solutions acquisition, established in February 2020, is a shell company specializing in “backdoor” M & a business.

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