FF official response to the data fraud storm: the short report is untrue, and more than 14,000 bookings are free bookings

Per reporter: Li Xing Per editor: Pei Jianru

Recently, FF announced that a special committee composed of the company's independent board of directors has completed an investigation into the previous inaccurate allegations of short selling of J Capital Research. The Special Commission's 8-K filing with the U.S. Securities and Exchange Commission (SEC) shows that there are certain inconsistencies with the facts in the information released by the company's investors, as well as weaknesses in corporate governance and compliance, but there is no evidence to support the other issues mentioned in J Capital Research's short-selling report. FF said that J Capital Research's short report on the company was seriously inaccurate.

However, the Special Committee stated in the document that the investigation found that FF stated in its pre-merger statement that it had received more than 14,000 bookings for FF91 vehicles, of which only a few hundred had been paid, while the rest (a total of 14,000) had not been paid.

On February 9, the relevant person in charge of FF explained in an interview with the "Daily Economic News" reporter: "The reservation form released by the company contains two types of paid reservation orders and free reservation orders, of which the company collected more than 14,000 FF 91 reservations, with the information of all booking users, this part is free booking data; and the company announced the global 300 invitation system limited edition FF 91, which is a paid reservation form. ”

The relevant person in charge of the above-mentioned FF also said: "At present, after investigation by a special committee of independent directors, it is believed that the 14,000 bookings previously announced by the company may be misleading, but it is not false information. ”

"Although the self-inspection report proved that it did not have financial fraud, it also revealed some flaws in the company's processes and company management system." FF aspect indicates.

In response to the above findings, FF has also made a series of remedial measures. If the board of directors appoints Susan Swenson as the executive chairman, FF global CEOs Bi Fukang and Jia Yueting will report directly to the executive chairman Susan Swenson, and the annual basic salary of both of them will be reduced by 25%.

At the same time, FF also said that the company will hire a chief compliance officer (CCO), and the dotted report will be submitted to the chairman of the audit committee to improve the company's compliance policies and procedures.

Because of the company's certain weaknesses in control and culture, Brian Krolicki will resign as chairman. "According to the structure of the board of directors of listed companies in the United States, the chairman of the board should bear the first responsibility for some of the flaws in the process and the company's management system shown in this self-inspection report." FF explained.

It is worth mentioning that due to the impact of J Capital Research's short report, FF's 2021 Q3 financial report has not been released so far. To this end, FF received a warning letter from NASDAQ requiring it to submit its quarterly report for the quarter ended September 30, 2021 within 60 days, otherwise it will most likely be delisted and delisted. At the same time, FF was also included in the list of companies that violated the NASDAQ.

For the release time of the 2021 Q3 financial report, the above-mentioned FF China related staff only said: "At present, the company has not yet determined the release time, and it is still waiting for the company's board of directors to finalize." The company will complete the delivery of the FF 91 production model in July this year. However, FF said in its 8-K filing that the company plans to submit its Q3 2021 financial report as soon as the special committee completes the review.