Xu Jiayin and Jia Yueting broke up: FF asked arbitration to ask Hengda to go out.


Xu Jiayin and Jia Yueting broke up: FF asked arbitration to ask Hengda to go out.

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Hengda called Jia Yue ting to run a joint venture.

After just over three months of honeymoon, Evergrande's stake in Faraday's Future (FF) changed dramatically: Jia Yueting suddenly initiated arbitration in Hong Kong, demanding the buyer's withdrawal from Evergrande.

On October 7, Hengda Health (00708) announced that Hengda Subsidiary Company Shi Ying signed a merger and subscription agreement with FF Top Company under the control of Jia Yueting on November 30, 2017. Hengda has invested $2 billion over three years, accounting for 45% of the joint venture. According to the agreement, it will pay $800 million by the end of 2008, $600 million in 2019 and $600 million in 2020. Hengda had paid in advance in May 25, 2018, and $800 million should be paid by the end of 2018.

The announcement also showed that in July 2018, Jia Yueting proposed that Hengda's $800 million had been basically used up, and asked Hengda to pay another $700 million in advance. In order to maximize its support for the development of the joint venture, Hengda signed a supplementary agreement with Jia Yueting, agreeing to pay $700 million in advance if the terms of payment were met.

Afterwards, Jia Yueting manipulated the joint venture company by using his right to a majority of the directors'seats in the joint venture company and demanded Hengda's payment under the condition that the contract payment was not reached. As an excuse, he submitted an arbitration at the Hong Kong Arbitration Center on October 3, 2018, demanding: 1) depriving Shi Ying of his consent to the financing as a shareholder; Rescission of all agreements and deprivation of rights under relevant agreements.

Hengda believes that Shi Ying has fulfilled the responsibilities under the relevant agreements. Smart King proposed the rights and interests of Ying and its shareholders when arbitration seriously injured. Shi Ying has engaged an international team of lawyers and will take all necessary actions to safeguard Shi Ying's rights under the relevant agreements.

On June 26, three months ago, Evergrande announced that it had acquired a 45% stake in FF through the acquisition of Shi Ying, becoming its largest shareholder; on July 13, Xu Jiayin visited FF headquarters in Los Angeles, accompanied by Jia Yueting.

Some investors said that Sun Hongbin's investment was happy to see the failure before the deeds, the industry is not optimistic about the future of Hengda's investment in Faraday is also very much, but did not expect the two sides so soon conflict.

Judging from the previous investment and investment records, Jia Yueting's credit has gone bankrupt: public information shows that Jia Yueting has been listed eight times as a trustbreaker.

There has been a lesson before, if Hengda does not set up in the contract for Jia Yueting punitive restraint clauses, it is more surprising.


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