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Jia Yueting FF and the ninth city will set up a joint venture company to raise 500 million US dollars

via:博客园     time:2019/3/23 10:33:34     readed:219


Zhu Jun snow in the charcoal?

After selling the Los Angeles headquarters, Jia Yueting waited for new funds to fight the fire. This time, his partner is Zhu Jun, the chairman of the ninth city.

On March 22, some investors in the investment industry revealed to the 21st Century Business Herald that Jia Yueting's electric car company Faraday Future (FF”) will establish a joint venture with the ninth city. It is reported that the two accounted for 50% of the shares of the new company, which means that Jia Yueting still has a say in the new company. At the same time, the new company will introduce four to five new investment institutions, raising about $500 million.

For the ninth city that has been quiet for a long time, it may be a chance to transform. The ninth city was established in 1998. In 2004, the company reached a cooperation with Blizzard Entertainment and obtained exclusive rights to operate World of Warcraft in mainland China. In 2005, the ninth city was listed on NASDAQ in the United States. This is the second Chinese online game company listed in the US after Shanda.com.

However, with the transfer of World of Warcraft's proxy rights to NetEase games in 2009, Blizzard Entertainment's development in the ninth city also entered a trough. “Ninetowns has always been good at agency operations. It used to be an agent for overseas games. Now it is also possible to represent FF cars and obtain relevant authorizations in the Chinese market. This is not impossible. & rdquo; The aforementioned sources revealed.

At present, FF still has a distance from mass production, but the gap in funding is far from being filled. On March 20th, US technology media The Verge reported that FF has sold its headquarters building in Los Angeles, USA, for $40 million. After the transaction was completed, FF leased the property.

Previously, its twists and turns of financing roads did not go smoothly. In June 2018, Evergrande Group, Evergrande Group, announced its investment in FF, and promised to invest US$2 billion in three years. The first investment of US$800 million was paid in May 2018. However, in terms of subsequent capital injection conditions, supplementary agreements, and equity ratios, the two sides broke open due to inconsistencies.

Until the end of last year, the two sides reached a restructuring agreement. Evergrande received a 32% preferred shareholding in FF and a 100% stake in FF Hong Kong. The condition is that FF is free and can accept external funds again. Jia Yueting has stable FF control and can repurchase shares held by Evergrande within 5 years.

It is worth noting that Jia Yueting once spent more than 400 million yuan to take industrial land in Deqing, Zhejiang, twice for the construction of automobile industrial parks. After the cooperation with the ninth city, the Zhejiang Deqing Leshi Auto Park project may be restarted.

According to the WeChat public number 21Tech (News-21), the funding problem of FF has not been alleviated, but a number of investment institutions are already negotiating. The attitude from the investors is that Evergrande's previous investment in FF has already proved the value of FF. As for the problems arising from subsequent cooperation, it is a commercial problem.

At the end of October and early December of last year, FF took measures to stop paying for some employees twice. At the same time as the second adjustment, the salary of the remaining employees was also lowered to the local minimum standard, with an annual salary of about 50,000 US dollars. However, at present, the salary of employees has returned to the previous 80%.

The number of employees involved in two unpaid leave positions is about 400, and the turnover rate of these employees is very low. For example, the team of about 40 people that the manager had previously took, half of the employees were left unpaid, but only one person was leaving. Today, there are more than 400 FF headquarters throughout North America, more than 10 employees at the Hanford facility, and more than 20 employees in Silicon Valley. The FF global staff is around 1,000 people.

FF 91 mass production also needs to wait for capital injection, but pre-production cars will continue to go offline. It is still unclear what kind of effects and sparks the two sides have in cooperation with the ninth city. As of press time, the ninth city stock price was 2.40 US dollars, and the market value was 97.0524 million US dollars. According to public data, after the announcement of the investment FF on June 25, Evergrande Health's share price rose more than 200% in two months.

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