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  "documentTitle": "EHang Holdings, Ltd. (EH)",
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  "presentationDate": "2021-02-16 00:00:00",
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      "text": "EHang Guangzhou, which holds most of EH’s assets and operations, has 95% of its equity frozen by a Chinese court as part of an ongoing lawsuit filed by one of EH’s creditors.",
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      "text": "According to the 2019 20-F filed with the SEC,28 Guangzhou EHang Intelligent Technology Co., Ltd. (“EHang Guangzhou”) is 100% owned (via VIE) by EHang Holdings Limited, the US listed entity.",
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      "text": "The underlying case for such judicial freeze was initiated possibly in late 2020 by Shenzhen Join-Share Equity Investment Center (http://www.join-share.com/), hereinafter “ Shenzhen Join-Share”), as the plaintiff. The legal basis of this case, according to the limited court information available, is “creditor’s right to cancel.”",
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      "text": "From our research in China, EHang Guangzhou appears to be where the substantial majority, if not all, of EH’s business is consolidated, with 200 Chinese patent applications and registrations, 452 Chinese trademark applications and registrations, 22 Chinese copyrights, and holds 22 Chinese government issued certificates such as and related to “CCC” (for power adapters), “CNCNA” (for power supply and battery pack), Hi-tech Company status, wireless power and software products.",
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      "text": "Here in this case, the creditor is most likely Shenzhen Join-Share, and the debtor is most likely EH Guangzhou. Feng Shuai, the 95% owner of EH Guangzhou, possibly was accused of illegitimately moving EH Guangzhou’s funds or assets impairing Shenzhen Join-Share’s ability to be repaid. Therefore, it is likely that Shenzhen Join-Share files this lawsuit in attempt to undo these transactions.",
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      "text": "According to our investigation on Chinese government and court records, Feng Shuai, who currently holds 95% of EHang GZ (possibly on behalf of EH through a VIE structure), has his 570,000,000 shares of EHang GZ judicially frozen by Guangzhou Tianhe District People’s Court. Hu Huazhi (the current legal representative of EHang GZ and co-founder/CEO of EH) is a co-defendant with Feng Shuai.",
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      "text": "Second, a judicial freeze on the EH Guangzhou equity held by its 95% shareholder is placed as a pre-trial protection to a potential creditor against EH Guangzhou.",
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      "text": "First, EHang Guangzhou is the “real” EH, according to EH’s SEC disclosures and Chinese government records. Any equity freeze or adverse actions against EHang GZ would seriously threaten the interest of EH and its investors.",
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      "text": "creditor’s right to cancel. — Legal basis of the case against EHang Guangzhou.",
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      "text": "28 EH 2019 SEC Form 20-F, p. 73",
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