On January 19, LeTV released a series of bad news such as termination of reorganization and pre-losing in 2017. Insiders said that after the termination of the reorganization, LeTV has no reason to continue its suspension and LeTV or will resume trading on January 25 What needs to be pointed out is that the risk of stock price plunge and profitability are all problems to be solved after the resumption of trading of Music Watch.
Continuous limit down risk
It is reported that LeTV net originally intended to issue shares and pay cash to buy 100% stake in LeTV Film (Beijing) Co., Ltd. (hereinafter referred to as "LeTV Film") due to the planning and restructuring of LeTV, which has been suspended for more than 9 months. And raise matching funds, unexpectedly, the reorganization plan eventually crashed in. After the termination of the reorganization, the date of the resumption of trading license music network will also be approaching.
January 20 related media said that LeTV or will resume trading on January 25. It is noteworthy that during the suspension of music Watch has been a number of raised funds such as China Post Fund down valuation, such as E Fund Fund decided from 2017 Since Nov. 14, Valuer, which is owned by Securities Investment Fund (excluding the ETF Securities Investment Fund), has been valued at RMB 3.91 per share and the stock price after the transfer is increased, At 15.33 yuan / share closed on April 14, 2017. Such a huge valuation difference, let the market outlook after the resumption of music optimistic expectations are not optimistic, and even insiders predict that after the resumption of trading music Watch will open a continuous limit Mode, the stock price will face the possibility of a setback.
According to the data show that as of September 30, 2017 LeTV about 185,900 shareholders were 'off', if the music network after the resumption of trading shares fell consecutively , These investors will undoubtedly suffer heavy losses.
In addition to small and medium investors, Niu Sanzhang Jianping also 'can not escape the robbery' .According to the music show disclosure of the 2017 third quarterly show, Zhang Jianping holds Lotte network of about 4977 shares, holding a ratio of 1.25%, ranked seventh In addition, Central Huijin Asset Management Co., Ltd., Industrial Bank Co., Ltd. - China Post Strategic Emerging Industry Mixed Securities Investment Fund and Agricultural Bank of China Co., Ltd. - China Post Information Industry Flexible Allocation of Mixed Securities Investment The funds ranked No. 6, No. 8 and No. 9 shareholder of Lotte respectively also face the risk of causing huge losses due to the falling stock price of Music Watch.
It should be pointed out that Jiayue Ting owns about 1.024 billion shares of LeTV, accounting for 25.67% of the total share capital, of which about 1.02 billion shares have been pledged to financial institutions, basically in full warehouse pledge status.If the music resumption of trading after the stock price fell sharply, Jiayue Ting shares or face the risk of liquidation, music as the real controller is likely to change.LeTV in the evening of January 19 notice of the risk alert also mentioned that if the company's share price fell, and Jia Yunting can not be added in time Guarantee, the financial institutions will have the right to dispose of the pledged shares, which may result in changes in the actual controller of the company.Song Qinghui, a well-known economist in an interview with the Beijing Daily said that at present there is a huge amount of debt Gu Junting unable to repay, to add The possibility of guarantee is not large.
Fund flow 'tight'
Due to the difficulties of recovery of receivables from some related parties, the maturity of debt and the non-fulfillment of borrowing commitments of sister sister Jia Youting, the capital flow of Lotte Media was 'tightened'.
It is reported that since 2016, Lotte Network has formed a large amount of related receivables and prepayments by way of capital transactions such as sales of goods, provision of services and other prepaid expenses to related parties controlled by Jiayue Pavilion as of November 30, 2017 Of the total amount of the related parties' overrelated arrears to LeTV over RMB7.5 billion for the above related parties, LeTV admitted that there is a risk of recovery, and some of the related party receivables have not yet been recovered, LeTV has appeared on the upstream The problem of large amounts of debt owed by suppliers, large amounts of debt defaults and lawsuits.
In addition, as of December 31, 2017, there existed a total of RMB9,288 million in financing loans and loan-related liabilities of LeTV, some of which will expire in 2018. LeTV has the risk of further tightening of cash flow due to maturity of debt, resulting in Music Watch there is a certain debt pressure.In addition to some related party receivables recovery difficulties, debt maturities and other factors led to the music network cash flow 'tight', Jia Youting siblings failed to perform the same commitment to the music network cash flow Produce 'heavy pressure'.
For Jiayue Ting siblings did not fulfill their commitment to loan, LeTV has also repeatedly reminded Jia Yunting and Jia Yuefang continue to fulfill their loan commitments, but Jiayue Ting sister responded that due to personal funds, debt has been unable to continue to fulfill their loan commitments .This incident also got Regulators are widely concerned, of which, Beijing Securities Regulatory Commission once on Jiayue Ting, Jia Yuefang has taken orders to correct the administrative supervision measures; the Shenzhen Stock Exchange also on December 29, 2017 on Jiayue Ting, Jia Yuefang publicly condemned the punishment.
For the company's operating conditions, LeTV Network also said in a statement frankly that by the current face of a huge amount of related receivables, shareholders and other borrowing commitments and other legacy problems continue to affect the company's operations into trouble, if there is no new capital to enter, the company Will face operational difficulties, but Song Qinghui pointed out that the music credit system has been damaged, the current face of large receivables recovery difficulties, the company under the risk of tight capital flow, music Watch the next financing channels are not optimistic .
Profitable profitability
LeTV network in the afternoon of January 19 to end the reorganization of negative news, in the evening of January 19 and then re-exposure to 2017 negative net profit forecast of bad news, which also allows investors for the future profitability of music Watch concerns.
LeTV said it expects the company's net profit attributable to shareholders of listed companies accumulated losses for the full year of 2017. It is reported that as of September 30, 2017, LeTV net profit attributable to shareholders of listed companies for the -16.52 billion yuan over the previous year Representing a decrease of approximately 435.02% .According to the 2017 Semi-annual Report revealed by Lotte, the Company mainly engaged in advertising business, terminal business, membership and distribution business and other businesses based on the entire online video industry, while in the first half of 2017, Business income, advertising business revenue and membership and distribution business revenue accounted for 42.61%, 7.34% and 38.47% respectively, the three accounted for a total of 88.42% of operating income, the three business decisions Music Watch's main revenue situation.
In 2017, the risk of a sharp decline in performance, LeTV net pointed out that due to the failure to repay the related party led to the company's cash flow was extremely tight, the company's business difficulties, unable to pay the upstream purchase price and the formation of products and sales, the company revenue In addition, the company's advertising revenue dropped significantly due to a series of impact on the reputation and credit of the Company due to the capital shortage of related parties, the impact of liquidity turmoil, the continued public opinion fermentation and the continuous expansion of public opinions, etc. At the same time, Debt risk and tight cash flow affected the cooperation system of the Company's suppliers, which resulted in negative pressure from the supply of products to the grant of the account. The terminal revenue and membership income of the Company experienced a sharp decline.
It is not difficult to see that the major businesses that led to the sharp decline in the performance of LeTV in 2017 are advertising revenue, terminal revenue and membership income. "Whether LeTV can effectively eliminate the continuous ferment of public opinion in 2018 and succeed Save the company's reputation and credit there is a great deal of uncertainty, at the same time for the music associated with the risk of debt, cash flow 'tight' and other negative pressure on the terminal revenue and membership income in 2018 can improve there is uncertainty . LeetNet intends to further enhance the company's strength in the content side through the acquisition of LeTV, which is also now announcing that these issues will inevitably make investors worry about the future profitability of LeTV. '' An unidentified insider in Beijing Say yes.