Tencent's "One Line" by Fang Fang
On April 11th news, LeTV Holdings Limited wrote back today that Ruizhi Smart Car (Guangzhou) Co., Ltd. is a affiliate of Faraday Future ("FF"quo.), two companies and LeTV Holdings. There is no legal relationship between the system and LeTV.
At the same time, LeTV Holdings first exposed FF financing from Hong Kong investment institutions, while Jia Yueting did not obtain any funds through FF financing. The reply shows that FF affiliate Ruichi Motors bought land in Nansha, Guangzhou, and the funds came from strategic investors.
On April 8, according to the official website of the Guangzhou Municipal Public Resource Trading Center, Rui Chi Motors photographed a 400,000 square meter manufacturing site in Nansha District of Guangzhou City for 364 million yuan. Ruichi Automobile was accused of affiliating Jia Yueting and FF. The Shenzhen Stock Exchange requested LeTV to verify the relationship between Jia Yueting and its affiliates and Rui Chi Motors, as well as the source of funds. LeTV has issued an inquiry letter to Jia Yueting and LeTV Holdings.
LeTV Holdings stated in its reply letter that FF is an Internet travel eco-enterprises Jia Yueting invested and established in the United States in the early days, and Rui Chi Motors is an affiliate of FF. There is no legal relationship between the two companies and the Levision holding system controlled by Jia Yueting and it is completely independent. Leshi Holding also pointed out that all of Ruichi Auto's land auction proceeds came from the investment of FF strategic investors, and there was no relationship with the related payment between LeTV and LeTV Holdings.
In addition, Leshi Holdings also disclosed for the first time that FF Strategic Investors are Hong Kong investment institutions. In this round of financing, Jia Yueting did not sell any equity and did not receive any funds. LeTV Holdings stated that FF operates in accordance with international legal norms and corporate governance structure, and Jia Yueting serves as CEO of FF's global business. Previous reports have disclosed that FF investors have sent financial staff to the company to monitor the use of each fund.
In fact, although 2017 FF was affected by LeTV’s debt crisis, many domestic and foreign investment institutions still went to FF to conduct due diligence or investment negotiations. Informed sources said that investors from around the world such as India, Thailand, South Korea, and France expressed their intention to invest in FF, and Jia Yueting and FF finally selected Hong Kong investment institutions.
Levision Holdings stated that FF and strategic investors are making active efforts to bring the world-leading technology, products and intellectual property owned by FF into the country.
It is reported that Jia Yueting is leading the FF team to accelerate the mass production of the first product, the FF 91. Since January of this year, FF has successively held the CES media test ride and global supplier summit. The Hanford factory has also been officially launched. LeTV Holdings stated that at present, FF 91 has regained support from top global suppliers, most parts and components have been released, and the Hanford plant's equipment relocation will start in mid-May.
Regarding debt issues that are of concern to the outside world, Le Vision’s reply did not specify. However, Jia Yueting had publicly stated that he will be responsible for debts and in the end he is also considering future personal gains and resolving the problem of the LeTV system debt that he had previously guaranteed. Earlier this year, Jia Yueting had authorized Gan Wei and Jia Yuemin to handle domestic debt processing and had made some progress. So far, LeTV has reached 3 debt repayment plans with LeTV's non-listed system, namely RMB 1.4 billion from the transfer of 100% equity of LeTV Financial, RMB 1.1 billion from the loan of Xin Lezhi Zhijia, and 9290 from Xinle Vision. Ten million yuan was used to offset the transfer of LeEco’s e-commerce business website (Lokshi Mall) and related resources, intellectual property and other assets.
At present, Jia Yueting's FF plan for making cars, due to the unresolved debt problem of the LeTV system, has some controversy in the country, but there are also some entrepreneurs who agree with it. At the Boao Forum for Asia 2018 annual meeting, Liu Yonghao, chairman of New Hope Group, said: "Jia Yuet Ting is an entrepreneur who is agitated, has ideas, is very bold, and is very spiky." "In the near future, Zheng Gang, founding partner of Zihui Venture Capital, also said," The old carmaker plans earlier than Weilai, Chehejia, Xiaopeng, etc. His forward-looking understanding of new energy vehicles is better than anyone else. Early and deep, we must admire. He is really serious about building a car.
The following is the full text of LeTV Holding's response:
LeTV Information Technology (Beijing) Co., Ltd.:
Regarding your company’s letter of April 9 to Mr. Jia Yueting, the relevant information is as follows:
1. Faraday Future ("FF”) is a global, global Internet travel eco-business that Mr. Jia Yueting invested and founded in the United States in the early days. Rui Chi Smart Cars (Guangzhou) Co., Ltd. ("Smart") is an affiliate of FF. The aforementioned company has no legal relationship with Levision Holdings, which is held by Mr. Jia Yueting, and is completely independent. FF operates in accordance with international legal norms and corporate governance structure. Mr. Jia Yueting serves as CEO of FF's global operations;
2. FF strategic investors are Hong Kong investment institutions. In this round of financing, Mr. Jia Yueting did not sell any shares and did not receive any funds. The sales amount of Ruichi Auto Land Auctions all come from the investment of FF strategic investors, and there is no relationship with the related payment between your company and LeTV Holdings;
3. FF and strategic investors are making active efforts to bring the world's leading technology, products and intellectual property owned by FF into the country and help the transformation and upgrading of China's auto industry.
Levision Holdings (Beijing) Co., Ltd.
April 11, 2018