With a period of 5 years, Jia Yueting will “return to China next week”?

The prerequisite for the performance of “True Return” is that the market value of FF reaches 30 billion U.S. dollars
Is that man about to turn over? This time I don’t put the PPT, I don’t pay the money, but to ring the bell to go public.

On July 22, Faraday Future (Faraday Future, hereinafter referred to as “FF”) founded by Jia Yueting was officially listed on the Nasdaq Stock Exchange in the United States. Some netizens couldn’t help but ridicule before investors bought and left their hands: Next week and next week, there will be so many next week; Lao Jia doesn’t build a car, so he can’t cut leeks.

With a period of 5 years, Jia Yueting will "return to China next week"?
FF listed

FF listing day, he and FF Global CEO Bi Fukang coming out of New York, a seat black casual Jia Yueting smiling face. Some media asked him: “Do you have any plans to return to China?” The man who was nearly 50 years old replied, “That must be.” The FF stock code “FFIE” closed up 1.45% on the day, with a market value of US$4.52 billion.

In the past seven years, the card game of car-making powers has long been changed. We were the first to launch FF91, and the progress has been overtaken by new car-building powers. In the first half of 2021, the sales of Weilai, Ideal, and Xiaopeng Motors were respectively 42 thousand, 30,100, 30,700, and FF91 has not yet started mass production.

What confidence does Boss Jia have, “must return to China”, how far is it from him to “return to China next week”?

With a period of 5 years, Jia Yueting will "return to China next week"?
From Jia’s “Accountant” to Jia’s Car

In Jia Yueting’s most glamorous moment, someone once described him like this: He is like the protagonist of a counterattack novel, with the memory of 2030, going back to 1995 and upgrading all the way. Jia Yueting advanced business thinking is no doubt that, in Youku potatoes, Tencent , iQIYI time have not yet appeared, Jia Yueting founded the music network .

At that time, Jia Yueting was often regarded as having magical powers and could be favored by celebrities from all walks of life. In January 2017, LeEco was caught in a financial crisis. Shanxi fellow Sun Hongbin became a “white knight” and sent a lot of money to help. Invested in LeTV with 15 billion yuan; after LeTV burst into thunder, Xu Jiayin quickly sent in another US$2 billion in investment. But as everyone knows, Sun Hongbin lost 16.5 billion of his blood and lost his money. He shed tears on the spot, “This is not a strong man with a broken arm, but a broken head.” And seeing the bottomless pit of burning money, the brothers are fighting, Xu Jiayin is also fighting for the control of FF. Stuck in a chicken feather.

Accounting Jia’s financial skills also made a group of celebrities “locked”, including Zhang Yimou, Guo Jingming, Sun Honglei, Huang Xiaoming, Liu Tao, Qin Lan and other celebrities, director shareholders, who “deep love” for Jia Yueting.

With a period of 5 years, Jia Yueting will "return to China next week"?
Photo of Jia Yueting and celebrities

After LeTV’s collapse, Jia Yueting’s ambition remained unchanged, and he started a car-making business. In April 2014, Jia Yueting founded FF in California, USA. Comparing the time, Jia Yueting is regarded as the first batch of players to enter the game: Weilai and Xiaopeng were founded in 2014, Ideal Car was founded in 2015, and FF is similar to them.

But FF did not build the car smoothly. At the FF91 conference in early 2017, Jia Yueting came out of the car in a black casual outfit and waved to the middle of the stage. He unabashedly praised this model: “It completely subverts human perception of cars and is a brand new species. FF91 made a lot of market clamor, but then, consumers fell into a long waiting period. Due to various problems such as shortage of funds, FF91 bounced tickets many times, and the delivery time was changed repeatedly, and it was labeled “PPT car manufacturing”. The name.

With a period of 5 years, Jia Yueting will "return to China next week"?
The timeline is drawn back to the present. FF went public and Evergrande Motors, which had a deep entanglement with FF, rose more than 30% on the first day because of holding 20% ​​of FF shares, and finally closed up 20.3%. Xu Jiayin, who was once regarded as a fool, And so proud of it.

However, the listing of FF can only be regarded as the first step. The outside world’s bigger question on FF is whether FF91, which has repeatedly bounced tickets, can it be delivered on time after returning to the bottom? According to FF’s official statement, the delivery is expected to be officially completed in the first quarter of 2022. In this regard, Jia Yueting has also set a flag on the FF App: The first phase of FF is to deliver FF 91 to global users within 12 months; the second phase is to achieve explosive revenue growth in smart terminals and become a market. One of the leading companies.

With a period of 5 years, Jia Yueting will "return to China next week"?
Can it be staged “Really?”

For so many years, one question that everyone has been trying to figure out is, how much money does Jia Yueting owe?

With a period of 5 years, Jia Yueting will "return to China next week"?
Judging from public information, there is no precise data on debt, but we can still see something from some documents.

In October 2019, Jia Yueting filed a personal bankruptcy reorganization application in the United States. Jia Yueting hopes to use FF equity to repay debts in disguised form through personal bankruptcy and reorganization. According to Chapter 11 of the US Bankruptcy Law, entities (including individuals) are allowed to hold debts while seeking to reorganize their debts by confirming reorganization plans. The debtor of the asset continues to operate the business.

According to statistics according to Jia Yueting debt team, it has repaid part of the debt of over $ 3 billion in debt to be repaid approximately $ 3.6 billion. But this plan was not approved by creditors.

With a period of 5 years, Jia Yueting will "return to China next week"?

After many twists and turns in adjusting the core clauses of the plan, the plan was finally passed in May 2020. And we also learned that Jia Yueting’s confirmed debt amount: US$6.17 billion. In July of the same year, Jia Yueting issued an open letter entitled “Working and Entrepreneurship, Restarting Life, With My Apologies, Thanksgiving and Commitment”, officially announcing the completion of his personal bankruptcy and reorganization procedures.

He promised that “no more than 10% will be reserved in the creditor’s trust, which will be mainly used for the compensation of LeTV stockholders.” 

Since then, we have often heard news about Boss Jia selling his assets. In January of this year, the news of “Jia Yueting and Gan Wei’s more than 30 million properties were forced to auction for repayment” rushed to the hot search on Weibo . One of them is located in Xinzhuang 1st Street, Chaoyang District, Beijing. It was once known as the East Fourth Ring Road. The price of second-hand houses was as high as 110 thousand and 130 thousand yuan per square meter. Another property is located in Shuanghuayuan, Chaoyang District, Beijing, which is also worth tens of millions. On July 28 this year, Jia Yueting’s Shimao Gongsan, after four unsuccessful auctions, conducted the fifth auction again, with a starting price of 1.64 billion yuan. , Which has shrunk by about 20% compared to the previous time.

With a period of 5 years, Jia Yueting will "return to China next week"?
“Workers” Jia Yueting

In other words, Jia Yueting, the founder of FF, has nothing to do with FF.

After the approval of the reorganization plan, Jia Yueting no longer owns FF equity, and all personal assets determined by the US court were transferred to the creditor’s trust, and his creditors replaced Jia Yueting as a FF shareholder. In the roadshow documents previously exposed by FF, FF’s early shareholders and others held a total of 50.3% of the shares, the subscribers who raised matching funds by issuing additional shares held 23.5%, and the creditor trust held 17.2% of the shares.

With a period of 5 years, Jia Yueting will "return to China next week"?
However, the listing of FF does not mean that Jia Yueting has paid off his debts. Only when the market value of FF reaches a certain amount and the creditors cash out from the trust can it be repaid. Some analysts estimate that Jia Yueting’s debt is still about $5 billion. According to this data, only when the market value of FF reaches about 30 billion US dollars can the debt be paid off.

So can FF take on such a mission? At present, since FF91 has not yet been mass-produced, the car is still in the stage of burning money. Prospectus data shows that from 2019 to 2020, FF has a net loss of US$142 million and US$147 million. As of December 31, 2020, FF had a cumulative loss of US$2.39 billion. Among them, the most criticized by the industry is its research and development expenses. Although Bi Fukang said that he has invested more than 2 billion US dollars in research and development in the past few years, in 2020, FF research and development expenses will only be 20.846 million US dollars (about 130 million yuan). Accounted for 13.7% of the cost.

During the same period, the R&D expenses of Weilai, Xiaopeng, and Ideal were RMB 2.49 billion, RMB 1.73 billion, and RMB 1.10 billion, respectively.

With a period of 5 years, Jia Yueting will "return to China next week"?
FF is full of confidence in the future. It predicts in the prospectus that it will achieve revenues of US$504 million, US$4.038 billion, US$10.55 billion and US$21.445 billion in 2022-2025. And put forward an optimistic judgment, by 2024, FF’s income can turn losses into profits, selling 113,300 vehicles.

In addition to FF91, FF also plans to launch FF 81 and FF 71, priced at approximately 95,000 US dollars and 65,000 US dollars, while the high-end FF91 has a target price of 180,000 US dollars (about 1.17 million yuan). At present, only Tesla ‘s Model S high-end version sells for more than 1 million yuan.

The plan looks very good, but whether it is a big pie or not depends on whether the car can be delivered. According to roadshow documents, FF plans to mass-produce FF91 at its Hanford plant in California nine months after the completion of the fundraising, with a planned annual production capacity of 10,000 units; the Gunsan plant in South Korea will be built in 2023 with a planned annual production capacity of 270,000 units; the volume in China The production plan is also being drafted and implemented.

Everything seems to be on the right track, but for the current Jia Yueting, his worth is still negative, and all the money he makes has to be used to repay his debts. According to Jia Yueting’s personal debt restructuring plan, when the creditor trust receives a total of 4.9 billion U.S. dollars in cash payments, he is entitled to 5% of the creditor’s trust distribution, or 250 million U.S. dollars. However, if Jia Yueting’s settlement negotiations with a few individuals are completed, this 5% may also be reduced. In other words, Boss Jia, who was once famous, has indeed transformed from the identity of the founder of FF to a complete “wage earner”.

With a period of 5 years, Jia Yueting will "return to China next week"?
How far is “return home next week”

The listing of FF opened up the vitality for Jia Yueting. But how far is it from him to “return home next week”?

In fact, Jia Yueting has completed two key steps: First, through bankruptcy and reorganization, he has initially got rid of the status of “Lao Lai”, which is what we call the person who is untrustworthy. Once you become an old man, you will not only be restricted from high consumption and travel, but also be punished by credit in government procurement, bidding, administrative approval, government support, financing and credit, market access, and qualification certification.

According to the previous agreement, if creditors want to obtain distribution from the trust established by the reorganization plan, the condition is that Jia Yueting must be removed from the “list of Chinese debtors” and the current consumer travel restrictions imposed by the Chinese courts on Jia Yueting must be lifted. According to the company’s data, Jia Yueting still has 5 pieces of information about untrustworthy persons being enforced and 25 pieces of restrictions on high consumption. Among them, the sum of money owed by the person who was untrustworthy was 1 billion yuan. Only when all these are eliminated can he truly return to China.

With a period of 5 years, Jia Yueting will "return to China next week"?
Jia Yueting’s risk information

The problem seems to be back to the arrears-Jia Yueting wants to return, in addition to bankruptcy and reorganization, he has to complete the critical second step to pay off the arrears. FF is all his bargaining chips, but in the short term, he can’t make a profit quickly.

On the one hand, it is because FF still needs continuous investment in the early stage: FF has listed in detail the total capital required for the first electric vehicle, which is about 377 million US dollars, of which 49 million are required for engineering and testing, 97 million for verification, and supply. Chain and management expenses are 96 million yuan, and capital investment is 103 million yuan. In contrast, the combined listing transaction brought FF a billion US dollars in blood transfusion, which is obviously still a drop in the bucket. FF has to spend a lot of money: the operating losses in the previous two years have to be made up, the establishment of the distribution system, the purchase of parts, and the FF91 test samples all cost money, and the continuous development of FF81 and FF71.

With a period of 5 years, Jia Yueting will "return to China next week"?
Image source: Futu US Stocks

On the other hand, FF’s opponents are not weak. Previously, FF’s biggest reliance was technology. As of the end of last year, FF had submitted more than 880 patent applications. But the price of FF91 for a car of 180,000 US dollars makes it a bit unattainable. It has good performance but no cost-effective advantage. And it is too far behind in production. In the first half of this year, the sales of Weilai, Ideal, and Xiaopeng have reached 42,000, 30,100, and 30,700 respectively. All new car-making forces have begun to race. land.

In seven years, Jia Yueting has experienced multiple identities in the eyes of the public . Some people say that at first they thought that Jia Yueting was an entrepreneur, but later that he was a dreamer , and then LeTV collapsed and turned into a performance artist and Oscar’s best actor. And what about Jia Yueting himself? He who is about to be 50 years old may have only one wish, and that is to set foot on the road home again.

In July last year, Jia Yueting’s bankruptcy and reorganization took effect, and the creditors trust was formally established and started operations. He said at the time, “Life restarts, working with an entrepreneurial mentality, and starting a business with a part-time job.” Now, after living abroad for four years, for Jia Jiao, perhaps the way home can finally see the direction for the first time.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/with-a-period-of-5-years-jia-yueting-will-return-to-china-next-week/
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