Who is the master FF?
On June 25, the Evergrande Health Bulletin stated that Evergrande Group acquired Hong Kong Shi Ying’s 100% shares for HK$6.746 billion, indirectly acquired 45% of Smart King’s shares and became the company’s largest shareholder. This means that Evergrande will With 13 billion yuan investment in Jia Yueting's important assets in the hands of FF cars, of course, there is a key to betting conditions, FF must achieve mass production in the first quarter of next year, which is not easy for FF.
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Regarding the question of whether mass production can be realized in the first quarter of next year, Evergrande expressed to the 21st Century Business Herald that the Hanford factory in Los Angeles is scheduled to complete production preparation by the end of 2018 and has now officially obtained Hanford City. The construction permit will be started and the production line equipment commissioning will be fully implemented.
Sun Hongbin, chairman of Rongchuang, who was deeply troubled by the quagmire of music, has yet to go ashore. Evergrande’s chairman Xu Jiayin will again “pay the bill” for Jia Yueting’s car dream.
The urgency of the transformation of the real estate company enabled the two companies, Rongchuang and Evergrande, to invest in Jiayue Ting and the industries behind him. The Internet, new energy vehicles, high-tech, modern agriculture and other fields are just as standard for large-scale housing enterprises. .
For Evergrande and Xu Jiayin, the investment in FF is not because of Jia Yueting's own, but the product, technology, and team that FF has attached.
How to make investments not thunder? 21st Century Business Herald reporter noted that Evergrande not only assigned a vice chairman of the group, and President Xia Haijun served as the chairman of Smart King, a joint venture between Evergrande and Jia Yueting, and also signed a gambling agreement with Jia Yueting team. To ensure control of the joint venture company.
Jia Yueting has a desperate sense. According to the Evergrande Health Announcement, Shi Ying Company holds 45% of the shares of Smart King, each share is entitled to 1 vote; In normal operating conditions, Jia Yueting holds 33% of the shares, Each share is allocated 10 votes.
However, if Jia Yueting and others cannot fulfill their commitments for the delivery of the first batch of electric vehicles in the first quarter of 2019, they are deemed to be in violation of Evergrande Health. By then, Jia Yueting will lose the above voting rights.
Xu Jiayin's Science and Technology Dream
It is worth noting that Evergrande was not the first institution to invest in the Faraday Future (hereafter abbreviated as 'FF'). This time, Evergrande, which was acquired by Evergrande, entered Evergrande in November of last year and Evergrande After the acquisition of time Ying, a premium of 60 million US dollars.
Shi Ying and Jia Yueting team signed an agreement, the two sides set up a joint venture company Smart King, wholly-owned FF. Shi Ying promised to invest 2 billion US dollars, accounting for Smart King 45% stake, has now paid 800 million US dollars, will continue to pay 1.2 billion US dollars continued to be Hengda .
At this price, Evergrande gave FF a valuation of approximately US$4.5 billion. Evergrande reported to the 21st Century Business Herald that the valuation is based on a value of 45% of the entire diluted share capital of the JV Company and 45% of the equity of the JV Company. At the time of value, the company has considered that FF Group is wholly-owned by the joint venture company and has already referred to the valuation of other new energy vehicle companies in determining the valuation of Faraday Future Group.
From this calculation, Evergrande has obtained a 45% stake in FF, which costs about 13 billion renminbi. Before Sun Hongbin invested 15 billion in LeTV’s huge loss, would this huge amount of Xu Jiayin’s spending meet the same fate?
Evergrande said that the company’s investment is not for Jia Yueting, but for the technology and team behind it. It is also a key layout for Evergrande to enter the field of new energy vehicles and high-tech industries.
At the Evergrande performance meeting on March 26th, Xu Jiayin first proposed to actively explore high-tech industries, and gradually form an industrial structure based on the people's livelihood property, cultural tourism, health and health as two wings, and high-tech as the leading industry.
At the beginning of April, Evergrande and the Chinese Academy of Sciences reached a strategic cooperation, signifying that Evergrande formally entered the high-tech industry. Evergrande plans to invest 100 billion in the next ten years, focusing on fields such as life sciences, aerospace, new energy, and modern science and technology agriculture.
According to the Evergrande Health Announcement, FF was founded in May 2014 and is wholly owned by Smart King. It is a global, Internet-based smart travel eco-company that aims to provide users with new energy, smart, connected and shared products and services.
FF has established a core R&D team in the United States. Its first high-end model FF 91 has a 0-96 km acceleration time of 2.39 seconds and a maximum cruising range of 700 kilometers. It is equipped with multiple cutting-edge technologies.
Evergrande said that the acquisition of cutting-edge technology in the United States must be approved by the United States Foreign Investment Commission (CFIUS). Evergrande's successful acquisition of the United States FF means that Chinese companies will master the world's advanced new energy automotive technology.
In addition, FF has set up R&D centers in Beijing, Shanghai and other places in China, and plans to build large-scale integrated R&D and production bases in Guangzhou and other places. Through this acquisition, Evergrande can introduce world-leading new energy automotive technologies and have the opportunity to grow at high speed. The new energy automotive industry has gained a strong competitive edge, capturing market share and diversifying its business.
Zhang Dawei, chief analyst of Centaline Real Estate, believes that Evergrande's advancement into new energy vehicles can also be coordinated with the real estate industry. It will back up the development of real estate business through the new energy automobile industrial park. It is easier to get land through the industrial park and the price is not high.
Jayating Jia Yueting
After Hengda entered the FF, Jia Yueting is still the focus of the outside world's most concern.
According to the announcement issued by Evergrande, Smart King Company adopts an AB share structure with different shares of the same shares. Among them, each stock held by the original FF represented by Jia Yueting has 10 votes, which also means that After Evergrande became the largest shareholder of FF, Jia Yueting still has absolute voting power.
However, Jia Yueting, who has always bet on betting, has also pledged his control over FF. According to 21st Century Business Herald reporters, Jia Yueting and Evergrande signed a binding agreement on the actual control of FF.
According to the agreement, if FF cannot fulfill the mass production of the first batch of electric vehicles in the first quarter of 2019, it will be considered that the original shareholders of FF could not perform their duties and their voting rights will be returned to Evergrande.
From this point of view, the introduction of Evergrande as a strategic investor is more like Jia Yueting's desperation. However, the reporter interviewed many people in the automotive industry who all expressed that they were not optimistic about the mass production target of FF.
One of the founders of a newly-built car company bluntly said: 'The FF has nothing, it is impossible to produce at the end of 2018, and it will not be possible by the end of next year.'
Another person in the industry told reporters that the definition of mass production in the industry generally refers to the production of large quantities, large-scale, and high-quality products. If the products are planned according to FF before, 850 million US dollars is not enough. A year's investment in R&D investment by newly-established auto makers amounts to 5 billion yuan. FF cannot achieve mass production unless it continues to receive money.
Regarding the question of whether mass production can be realized in the first quarter of next year, Evergrande expressed to the 21st Century Business Herald that the Hanford factory in Los Angeles is scheduled to complete production preparation by the end of 2018 and has now officially obtained Hanford City. The construction permit will be started and the production line equipment commissioning will be fully implemented.
'We are confident that, with the joint efforts of the company and the FF team, we can advance the mass production of electric vehicles in accordance with the original plan'. Hengda officials said.
Although the outside world may not be optimistic about FF, but with Evergrande's accession, for FF and Jia Yueting, it is also considered a breathing space.
A long-time observer in the automotive industry believes that Jia Yueting wants to 'turn over' and faces two challenges. Is it possible to achieve mass production of electric vehicles in accordance with the plan? On the one hand, it is even more important how to solve the issue of domestic bankruptcy.
In June of this year, Jia Yueting and his sister have been included in the list of restrictions on taking trains and airplanes. As a 'creditist', Jia Yueting is almost impossible to return home in the short term. He once said that he does not return to China to do a good job of FF because once There is no way to go to the United States after returning home.
But now, FF's target market has turned to the domestic. An FF relevant person in charge told the media that FF will be implemented in China and the United States at home, the United States mainly produces FF 91, and Guangzhou Nansha base is producing FF's follow-up models.
FF said in the statement that after completing the first round of financing, FF will start a new journey. However, there is a CEO who temporarily dared not return to China. How far FF's development can go is yet to be discussed.