A stone stirs a thousand waves.
Although the cooperation between Geely and Faraday future (hereinafter referred to as “FF”) has not yet been officially confirmed, the unanimous response of both sides “not to comment on market rumors” has made the news of “FF is about to return to China” rampant.
On January 27, a person familiar with the situation disclosed that in the latest round of FF financing, Zhuhai state-owned assets participated in the investment of 2 billion yuan. At the same time, two leading state-owned enterprises in Zhuhai, Gree Group and HUAFA group, joined hands to participate in the investment, but the investment amount was less than 2 billion yuan.
Subsequently, it was reported that the relevant departments of Zhuhai City were negotiating with Faraday for FF financing and landing cooperation. Faraday has registered a new company in Hengqin New Area in the future, and will land in the form of joint venture in the future. At present, Zhuhai has stepped up the preparatory work for the construction of the production base after the investment. After the Spring Festival, the speed of cooperation will be further accelerated.
In addition, the news points out that after FF’s backdoor listing in the United States, it will establish a production base in Zhuhai, and Geely may lead the production and manufacturing of FF products as a partner.
According to the news, if FF 91 can be successfully launched in Zhuhai this time, it is expected to achieve mass production in the second half of 2022.
Can Jia Yueting turn over?
“Anything is possible.” On January 27, an investor familiar with the automotive industry told reporters, “Jia Yueting completed his personal bankruptcy reorganization last year, in order to eliminate FF’s financing difficulties and promote FF 91 to return to mass production. Now that the bankruptcy reorganization has been completed, it is expected that Jia Yueting will return home to seek financing. ”
In fact, since the outbreak of LETV financial crisis in 2017, Jia Yueting, as the actual controller of FF, has indeed brought many obstacles to FF’s financing, especially in the Chinese market, Jia Yueting’s personal credit has long been bankrupt. The difficulty of financing has always been the main problem of FF 91 mass production.
It is understood that since the first pre production vehicle of FF 91 came off the production line at the end of August 2018, the mass production time of FF 91 has been postponed from 2019.
In order to open up financing channels at home and abroad, Jia Yueting officially proposed personal bankruptcy and reorganization, resigned as CEO and transferred to cpuo (chief product and user officer) in 2019, and ushered in Bi Fukang, the father of BMW I8, as the CEO of FF.
“The implementation of the personal bankruptcy reorganization plan will release Jia Yueting’s personal guarantee obligation and debt, so that he can go back to China to promote and implement FF’s China US dual home strategy, which is of great significance for FF’s successful financing and future IPO, especially for the rapid development of FF’s business in China.” Previously, Jia Yueting’s debt handling group said.
Since he went to the United States to build cars, Jia Yueting has been looking for opportunities to return to the Chinese market and promote the dual main battlefield strategy between China and the United States.
After breaking up with Evergrande hand in hand in 2018, Jia Yueting applied for personal bankruptcy and reorganization in 2019 to promote FF 91’s mass production plan. Jia Yueting believes that if FF 91 achieves large-scale mass production in China and the United States, it is expected to achieve a substantial reduction in costs, which will have great market potential in China, the world’s largest auto market.
With the completion of Jia Yueting’s personal bankruptcy and reorganization in July 2020, FF seems to be ushering in a turnaround.
In early October last year, FF announced that it would prepare overseas to seek IPO of US stocks in the form of SPAC. On October 14 last year, FF announced that it had obtained debt financing loans of up to US $45 million (over RMB 300 million) from two major financial institutions in the United States. The loan will be used to support the final commissioning of its flagship electric vehicle FF 91 project and the next R & D work of FF 81.
“Working with all partners of FF to make FF, returning to China and promoting the dual main battlefield strategy between China and the United States is still my core mission in the next stage of my life.” Jia Yueting once said.
It is noteworthy that on December 22 last year, Jia Yueting’s debt group announced that the second group of creditors had signed the agreement, involving US $2.281 billion. This agreement involves eight creditors applying to the court to remove or delete Jia Yueting as a double limited or dishonest person.
“The recent upsurge of new energy vehicles in the capital market is also an opportunity for FF. If FF can be successfully listed in the U.S. backdoor, Jia Yueting may be able to turn over. ” The investor said.
According to media sources, FF will submit spac listing materials as soon as two weeks, and domestic financing matters are expected to be announced at that time.
It is worth noting that in the past year, the performance of new car manufacturers in the capital market is obvious to all. Tesla’s share price has increased seven times in one year; Weilai has dropped to less than US $2 in 2019, rising 35 times in one year; even Xiaopeng and ideal, who have just landed in the US stock market for less than a year, have increased by 102% and 75% respectively.
This trend will continue in 2021. By the close of January 26, Tesla’s market value has reached US $837.1 billion; Weilai, Xiaopeng and ideal’s market value are US $94.2 billion, US $42.3 billion and US $29.2 billion respectively. This also means that only four new car manufacturers have created a market value of nearly one trillion US dollars. Among the traditional car companies, Toyota, which ranks first in global sales, has a total market value of only $238.2 billion.
The Hefei municipal government, which bet on Weilai, is also known as the “most powerful venture capital” in the industry.
The news of holding hands with Zhuhai state-owned assets also gave Jia Yueting and FF unlimited imagination.
Do you need FF in Zhuhai?
Before it was reported that Zhuhai state-owned assets had invested in FF, there was news that FF had established a new company in Hengqin, Zhuhai – Fafa automobile (Zhuhai) Co., Ltd. (hereinafter referred to as “FF Zhuhai Company”).
According to qixinbao, FF Zhuhai company was officially established on December 14, 2020 with a registered capital of US $250 million and 100% shareholding by FF Hong Kong holding limited. The legal person of the company is Jia chentao, who also serves as the supervisor of LETV eco automobile (Zhejiang) Co., Ltd.
The business scope of the company includes: Sales of new energy vehicles; sales of new energy vehicle production and testing equipment; research and development of auto parts; sales of new energy vehicle electrical accessories; operation of electric vehicle charging infrastructure; software development; application system integration service of artificial intelligence industry; intelligent vehicle equipment manufacturing, etc.
This is also considered by the industry as the prelude for FF to settle in Zhuhai.
The arrival of FF is also interpreted by the industry as “promoting the focus of high-level talents in Zhuhai automobile industry, accelerating the circulation of industrial capital, accelerating the improvement of industrial chain, and promoting the development of Zhuhai new energy automobile industry.”
In fact, as an important automobile manufacturing base in China, Zhuhai has been making great efforts to lay out the new energy automobile industry.
As early as 10 years ago, Zhuhai issued the “Zhuhai new energy vehicle industry development plan (2011-2020)” (hereinafter referred to as the “plan”), pointing out that Zhuhai vigorously develops emerging industries, actively introduces new energy vehicles and their upstream and downstream enterprises, and emerges enterprises with good development prospects, such as Yintong new energy Co., Ltd., from vehicle manufacturing to battery, motor, electronic control, etc The industrial chain of key parts and charging equipment has taken shape. According to preliminary statistics, there are more than ten new energy vehicle enterprises in Zhuhai, with a total industrial output value of 527 million yuan in 2009.
According to the plan, by 2015, Zhuhai will achieve a new energy vehicle industry scale of more than 10 billion yuan, and become an excellent city for the promotion and application of new energy vehicles in the whole province. By 2020, the scale of new energy vehicle industry will reach more than 80 billion yuan, and an important production base of new energy vehicles in the whole province and an important production base of key parts of new energy vehicles in China will be built, so as to become an excellent city for the promotion and application of new energy vehicles in China.
In 2010, the first batch of 20 pure electric buses were put into two bus lines in Zhuhai, which was the first commercial operation of pure electric bus in Guangdong Province.
In 2016, Dong Mingzhu’s investment made Zhuhai Yinlong, which has been unknown for a long time, gain wide attention. In the same year, ZTE, a traditional mobile phone equipment manufacturer, acquired Zhuhai Guangtong bus and set up ZTE Intelligent Automobile Co., Ltd. to enter the field of new energy vehicles. In November 2019, the new ZTE intelligent automobile base in Jinwan, Zhuhai was completed and put into operation, with an annual output of 5000 large and medium-sized buses per shift.
Jinwan District of Pearl River, with Yinlong new energy and ZTE intelligent vehicles, has been rated as “new energy vehicle industry base of strategic emerging industry in Guangdong Province”. Its products mainly include vehicle production of new energy vehicles (pure electric vehicles, hybrid electric vehicles, LNG vehicles, etc.), power batteries, motors, electronic control and other key parts.
It is worth noting that Yinlong new energy and ZTE intelligent vehicles are mainly in the field of electric buses, while Zhuhai is weak in new energy passenger vehicles.
Since the end of 2018, the “infighting” between Dong Mingzhu and Wei yincang, the two major shareholders, has also made Zhuhai Yinlong gradually “lag behind” in the internal friction.
During this period, Shanghai successively introduced Tesla, invested in Weima and built Zhiji brand. After introducing Weilai, Hefei invested in Zero run again, and Zhuhai’s layout in the field of new energy passenger vehicles was almost blank.
In order to speed up the automobile industry cluster, Zhuhai has increased investment in related industries in recent two years.
Public information shows that in the past two years, state-owned enterprises in Zhuhai have added more than 200 new industrial investment projects, involving more than 20 billion yuan of investment. More than 200 enterprises have been recommended by various departments at all levels in Zhuhai, and more than 60 high-tech enterprises have signed contracts or settled down. In terms of strategic investment, Zhuhai’s state-owned enterprises have become the largest shareholders of eight listed companies (six holding and consolidated listed companies) through investment and merger, with a total market value of about 50 billion yuan and one privatization.
In May 2020, the opinions of Guangdong Provincial People’s Government on cultivating and developing strategic pillar industrial clusters and strategic emerging industrial clusters clearly put forward that we should adhere to the common development of traditional and new energy vehicles, promote new energy and intelligent networked vehicles, expand the proportion of high-end models, and increase the proportion of new energy vehicles. Optimize the regional layout of automobile industry focusing on Guangzhou, Shenzhen, Zhuhai, Foshan and Zhaoqing, and create an automobile industry cluster with international influence.
At present, Zhuhai is accelerating the cultivation of five hundred billion level industrial clusters focusing on integrated circuits, biomedicine, new materials, new energy and high-end printing equipment.
In the view of the industry, FF, which is just short of mass production, has a number of technology patents, especially in the core technology of three electric vehicles, software, artificial intelligence and Internet. If it goes well, it may make up for Zhuhai’s weakness in the field of high-end new energy passenger vehicles.
“Jia Yueting’s reputation in China has not been completely restored, and FF still has a criminal record of” going to court “with Evergrande.” Some people in the industry worry that the risk of cooperating with FF is uncontrollable.
It is worth noting that FF is currently promoting the testing of pre production vehicles. On December 9 last year, FF said on its social media account: “another pre production vehicle has been completed. It will join the test team to test on the road and continue to push forward the FF 91 mass production plan.”
(author: Du qiaomei, song Doudou, editor: Zhang ruosi)