On the morning of November 24, LeTV received the GEM inquiry letter:
Board of Directors of LeTV Network Information Technology (Beijing) Co., Ltd. On November 20, 2017, the board of directors of your company made the following resolutions: (1) The Company intends to issue to Tianjin Kairui Huixin Enterprise Management Co., Ltd. (hereinafter referred to as 'Tianjin Kairui' ) Borrowed RMB1,290,000,000 mainly for the purpose of repaying the loans of the Company due to expire. Among the borrowings, the Company intends to hold 13.5416% equity interest in LeTV Electronic Technology (Tianjin) Co., Ltd. ("LeTV Zhixin") And its derivative interests, 47.21% equity interest in LeTV Cloud Computing Co., Ltd. ("LeTV Cloud") and its derivative interest were pledged to Tianjin Jia Rui. As this matter constitutes a connected transaction, it still needs to be submitted to the shareholders' general meeting for review. (2) The Company needs to borrow from financial institutions to supplement daily operation and management needs of the Company. Sunac Real Estate Group Co., Ltd. (hereinafter referred to as 'Sunac Real Estate') provides joint and several liability guarantee for the Company, with the total amount of guarantee not exceeding RMB3,000,000,000. In the meantime, the Company provided counter-guarantee and guarantee for Sunac Real Estate based on the equity interest of 26.7702% held by LeTV and its derivative interest The total amount does not exceed RMB3,000,000,000, which constitutes a matter for the related parties to provide the guarantee, yet subject to the shareholders' general meeting for consideration.