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Elegant / elegant
Source: Jiazi guangnian (ID: jazzyear)
Jia Yueting may never have worried about this problem, and it may not be Jia Yueting who worries about this problem.
Listed, is considered to be Jia Yueting and Faraday future (FF) turning the key action.
On the one hand, the funds raised from the listing can directly solve the cash flow problem at FF’s basic pain point; on the other hand, Jia Yueting may finally be able to pay back the money, which is the first time after the LETV crisis broke out in July 2017.
Yesterday, Faraday future (FF) announced that it will be listed on the Nasdaq stock exchange through a merger with special purpose acquisition company (SPAC). The transaction will provide about US $1 billion for FF. After the merger, the new company will be valued at about US $3.4 billion (about RMB 22 billion).
There are too many dramatic colors in Jia Yueting, the founder of FF. The evaluation of Jia Yueting often goes to two different extremes.
On the good side, Jia Yueting is known as “the man who dares to declare war on apple and Tesla directly” because of his products on mobile phones and cars. His car making route is also regarded by the “appearance Association” as leading a new trend. On the bad side, Jia Yueting is regarded as a liar, excessive self exaggeration and financial gamer.
In the car industry, Jia Yueting is an ashes player. On December 9, 2014, Jia Yueting announced that LETV would build the best internet intelligent electric vehicle, and the automobile industry would face a huge revolution. However, due to the funding problem of the mobile phone supply chain, LETV smart car company established in 2015 directly fell into the cash problem. In July 2017, eight months after the outbreak of LETV ecological crisis, Jia Yueting went to the United States and started the road of FF.
Today, FF is about to usher in a new critical moment. A question worth pondering is whether Jia Yueting is worth giving another chance?
1. Creditors are willing to
In fact, there are many stakeholders who are looking forward to FF listing.
Among these people, there are domestic employers and creditors who have been collecting debts for many years. Compared with Jia Yueting, maybe they are more concerned about the progress of FF listing.
If FF can successfully IPO, then creditors may be able to recover the money that belongs to them.
Over the years, Jia Yueting’s creditors are closely related to FF’s fate. If FF can be listed successfully this time, it is likely to be paid as soon as possible, which can end the nightmare of these creditors for many years.
So, how much does Jia Yueting owe?
According to the information provided by the U.S. debt processing group, more than 90% of Jia Yueting’s personal debts are debts guaranteed for the company. Up to now, the paid debts have exceeded US $3 billion, and the outstanding debts are about US $3.6 billion (about RMB 25.5 billion). After deducting the domestic assets frozen for disposal and the guaranteed debts convertible into shares, the net debt is about US $2 billion.
But the bigger mystery is also revealed in the public information. Jia Yueting has more than 100 creditors, including 2 China’s richest men, 2 real estate tycoons, 21 stars, 13 banks, 11 securities companies, 21 public offerings and 29 private placements. Among the top 20 creditors, there are both Jia Yueting’s “Hometown” and Jia Yueting’s “old friends”, whose claims amount is about US $2.5 billion (about RMB 17.7 billion).
The number of “top 20 creditors” is still less than 1 / 5 of the total number of creditors.
Whether in the past or now, there are always investors willing to spend money for Jia Yueting, sun Hongbin of rongchuang shed tears for him, and Xu Jiayin of Evergrande regretted for him.
FF investors are not simple. On November 30, 2017, Shiying company injected a total amount of US $2 billion of new financing into FF according to the investment agreement, accounting for 45% of the shares. On June 26, 2018, the shareholders of Shiying company decided to transfer all the equity of the company to Evergrande health. Evergrande health holds 45% equity, the original shareholder owns 33% equity, and FF team owns 22% equity.
On April 30, 2019, FF team won US $225 million debt and trust financing from birch lake, a US commercial bank.
In October 2020, FF announced that it has obtained a total of US $45 million bond financing loan from birch lake and ATW partner, two major financial institutions in the United States, and said that the completion of this financing means that FF has obtained sufficient working capital before the formal IPO and basically survived the short-term cash flow crisis.
Similarly, in the disclosure of FF’s listing, FF’s common stock pipe includes more than 30 parent institutional shareholders from the United States, Europe and China, and its cornerstone investors include large financial institutions from the United States and Europe, China’s top three private automobile manufacturers and a developed city in China.
There are too many stakeholders who want FF to go public.
2. New entrants are coming
However, some people are still joining the FF game, and the beginning is not small.
First, state-owned assets endorsement.
In the disclosure of FF’s listing information, it is mentioned that “a developed city in China” is included in the investors of pipe cornerstone, which is speculated as Zhuhai by various analyses.
It is not a new phenomenon for cities to compete with new forces in investing and building cars.
In May 2017, Xiaopeng automobile settled in Zhaoqing City, Guangdong Province, with a total investment of 10 billion yuan; in April 2020, Weilai automobile introduced 7 billion yuan of strategic investment from Hefei Construction Investment Holding (Group) Co., Ltd. and China Investment Management Co., Ltd., and Hefei was once known as “China’s best venture capital” because of the successive introduction of Weilai automobile, Jianghuai Volkswagen, Zero run automobile, etc.; in September 2020, Weilai Automobile Co., Ltd In June, Weima automobile received 10 billion yuan of financing jointly invested by Shanghai state owned investment platform and SAIC Group.
Previously, FF had contacted Zhuhai. In December 2020, FF established a new company “Fafa automobile (Zhuhai) Co., Ltd.” in Zhuhai. The company has a registered capital of 250 million US dollars and is fully owned by FF Hong Kong holding limited. The legal representative is Jia chentao, who is also a supervisor of LETV eco automobile (Zhejiang) Co., Ltd. The new company’s business scope includes sales of new energy vehicles, etc.
On January 27, it was reported that in the latest round of FF financing, state-owned assets from Zhuhai invested 2 billion yuan in FF, and the contact between the two sides had already begun by the end of 2020. Then it came out that Gree Group, the two leading state-owned enterprises in Zhuhai, and HUAFA group joined hands to participate in the investment, but the investment amount was less than 2 billion yuan. At present, the relevant enterprises have not made a public response.
Zhuhai has long had plans. In 2016, Zhuhai included new energy vehicle equipment into six key development areas. Zhuhai Jinwan District also proposed the goal of “building a national new energy vehicle manufacturing base” and implemented the new energy vehicle supporting system.
Second, among FF’s new investors is Geely.
This morning, Geely Holding Group officially announced that it has signed a framework cooperation agreement with FF, planned to cooperate in the field of technical support and engineering services, and participated in a small amount of investment in FF’s listing.
Geely is speeding up its internal and external layout. In September 2020, Geely released the “vast” structure of pure electric platform sea, which lasted for four years and invested 18 billion yuan to build, during the Beijing auto show. In addition, Geely has reached cooperation with Baidu, Foxconn and Tencent to find a suitable “foundry” to enable its own technology.
Earlier, Reuters had news that Geely Automobile Group would carry out strategic cooperation with Faraday, founded by Jia Yueting, in product technology and OEM. This time, the boots landed, laying a solid foundation for the prediction of their cooperation.
If the two parties reach an agreement through cooperation, Geely’s endorsement will, on the one hand, speed up FF’s IPO and obtain support from the capital market again, which can promote the mass production of FF 91 and the R & D process of FF 81 as soon as possible. On the other hand, Geely’s operation management capability, supply chain system, vehicle manufacturing capability and vast structure will also help FF’s products land as soon as possible.
These two endorsements add an insurance to Jia Yueting’s new opportunities.
3. Listing is likely to be a success
FF’s listing is still highly possible. A new energy track investor told Jiazi guangnian that he was optimistic about FF’s listing: “black cat, white cat, if you can catch mice, it’s a good cat. The new energy track is more suitable for investment than others, and it’s OK to have more entrants.”
Compared with history, new energy’s track dividend looks to the future.
In 2020, the share price of new energy vehicles will soar, Tesla will increase by 773% in 2020, ideal and Xiaopeng will increase by 86% and 85% respectively, and Weilai will soar by 1569% in one year.
In addition, in the new energy market, FF’s car products themselves are not necessarily poor.
FF focuses on the luxury car market. In the information disclosed in this listing, FF publicly said that as the world’s only high-tech luxury intelligent Internet electric vehicle brand, the company expects to sell more than 400000 vehicles in the next five years, and its first super luxury flagship model FF 91 has won more than 14000 orders worldwide.
According to the data from Randolph square IP (RSIP), an analysis company, FF has applied for or been granted about 880 utility and design patents worldwide, of which 530 have been granted, ranking the first among start-up technology companies of the same age.
In addition, RSIP also pointed out that FF’s expanding patent portfolio of electric vehicles is comparable to Tesla’s in key technologies, and its diversified patent portfolio is more powerful than many leading OEM manufacturers including Toyota, Ford and Honda in similar technologies.
Luxury is the advantage of FF. FF has a certain market prospect in China because Chinese consumers prefer brand positioning and luxury comfort. In addition, with Jia Yueting’s legendary personal experience, if Jia Yueting can really turn over and establish a good brand image, it is not impossible for him to turn from black to red in the future.
【1】 Capital still believes in Jia Yueting? AI Financial Society
【2】 Jia Yueting will return home next week with ff91? 100 million euro
【3】 FF will be listed on the curve: with an estimated value of 3.4 billion US dollars, is Jia Yueting expected to be reborn? – Leidi
【4】 Is Jia Yueting’s FF worth Zhuhai’s bet? – Zhongxin longitude and latitude
【5】 An interview with Jia Yueting four months after he went to the United States: I’m worried about restricting my exit from China and not returning to China for the time being
(statement: This article only represents the author’s point of view, not Sina’s position.)