AutoBeta(AutoBeta.net)04/13 Report--

Leeco was fined 240.6 million yuan for financial fraud, fraudulent issuance and other illegal acts, and its controller Jia Yueting was fined 241.2 million yuan, Leeco announced on April 12.

According to the investigation of the Beijing Securities Regulatory Bureau, there are five violations of Leeco: 1. Leeco made financial fraud from 2007 to 2016, and there were false records in its application for initial public offering and listing (hereinafter referred to as IPO) and the annual report from 2010 to 2016; 2. Leeco failed to disclose related party transactions in accordance with the regulations; 3. Leeco did not disclose guarantees for companies such as Letv Holdings. 4. Leeco failed to truthfully disclose the performance of Jia Moufang and Jia Yueting's loan commitments to listed companies; 5. Leeco's non-public offering of shares in 2016 constituted a fraudulent offering.

All in all, Leeco was fined a total of 240.6 million yuan and Jia Yueting, as the actual controller, was fined a total of 241.2 million yuan.

According to the data, Leeco was founded in November 2004 and listed on the gem in August 2010. it has become a listed company with a price of IPO in the industry, with a maximum market capitalization of 165 billion yuan at its peak.

In October 2016, the capital chain crisis of Letv system broke out, and the stock price began to fall all the way. In May 2017, Letv laid off staff and suffered debt collection from suppliers. Two months later, Jia Yueting abandoned Leeco and left the United States to help raise money for FF.

In November 2017, Leeco announced that Jia Yueting was unable to fulfill the promise of interest-free loans and increased holdings, and "deeply apologized." In April 2019, Leeco disclosed its 2018 results showing that its net worth was negative. In the same month, the China Securities Regulatory Commission announced that Leeco and Jia Yueting had decided to file an investigation against Leeco and Jia Yueting on suspicion of illegal information disclosure. In May 2020, the Shenzhen Stock Exchange announced the termination of the listing of Leeco shares. In July, Jia Yueting posted an apology letter entitled "working a Business, restarting my Life, with my apology, gratitude and commitment" on Weibo.

At present, Jia Yueting is promoting Faraday's future listing and mass production, which is the only opportunity for Jia Yueting to turn around.

FF announced on its website that it has reached a final agreement with SPAC on a business merger, valuing the company at about $3.4 billion (22 billion yuan) upon completion, and plans to list on the Nasdaq Stock Exchange under the symbol "FFIE" in the second quarter.

On March 26th, Faraday Future announced that it had raised nearly $100m in debt financing, which was led by a credit group managed by Ares Management Corporation and was also attended by existing lenders such as Birch Lake. Faraday Future said that the new financing will comprehensively accelerate the implementation of FF's complete product strategy, officially start the preparatory work for the production of FF Hanford plant, advance the countdown to FF 91 delivery, and accelerate the landing of FF's business in China.

On April 5, FF formally submitted S4 listing documents to the US Securities Regulatory Commission. FF currently has three models with the highest-end positioning, the FF91, FF81 and FF71,FF91, which are expected to start at $100000 and are expected to launch a year later, according to the documents. Aimed at the upmarket mass market, FF81 is expected to start mass production 18 months after the launch of the FF91, with a target starting price of $59000. The third model, the FF71, which is aimed at the mass market, is expected to be designed and developed in 2022, with a starting price of $45000.

Affected by the above news, the share price of Leeco 3, which retired to the new third board, rose sharply. So far, the latest closing price of Leeco 3 is 0.48 yuan per share, which is 0.18 yuan per share on the last trading day of Leeco's A shares, an increase of 167 percent.

At present, Jia Yueting pins all his hopes on the listing and mass production delivery of FF. For Jia Yueting, if FF is not listed, all efforts will be in vain and Jia Yueting will not be able to repay such a high debt. If FF goes public, it will take a long time to make a profit, but it also increases the possibility of a comeback.

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