On the evening of January 23, LeTV released an announcement announcing the termination of major asset restructuring and the resumption of trading of its shares on the morning of January 24.
In the announcement, LeTV also made a risk alert on its performance in 2017, saying that due to the company's extremely tight cash flow due to the failure to repay its debts due to related parties, the Company experienced difficulties in business operations and a sharp decline in various incomes ; Meanwhile, the Company's daily operating costs did not decrease correspondingly, and the financing costs increased substantially. In addition, there was a partial recovery of receivables from related parties and there was a possibility that the Company could make provision for large amount of bad debts in 2017. These factors The company's operating results in 2017 there is a substantial decline in the risk.
In fact, the music show a huge loss of 2017 results is a foregone conclusion.According to the first three quarters of music show the results of the disclosure of information shows that from January to September 2017 Leetucun net profit of 1.6 billion yuan, compared with the previous year About 446% decrease over the same period.
In the face of huge losses, LeTV said that the board of directors and management of the Company actively responded to and constantly adjusted and optimized the management mechanism and organizational structure and actively resumed the development of all major businesses including the distribution of copyright in film and television drama, the supply and marketing of super-TV, In order to strive to generate new revenue and gradually deal with the debt problem.In addition, the company's second-largest shareholder Tianjin Jia Rui also actively coordinate with the management of the current series of problems encountered in the hope of borrowing, replenishment and other measures Ease the company's financial constraints, to ensure the continuity of operation for the latter part of.
According to media reports, LeTV has suspended its valuation several times since its suspension on April 17, 2017. The latest valuation is as low as RMB3.91. According to the last one before the music video suspension On the trading day's closing price of 15.33 yuan, LeTV valuation fell nearly 75%, equivalent to about 13 after the resumption of trading limit.
On the morning of January 23, LeTV Network held an investor briefing through an interactive platform for investor relations of listed companies of Shenzhen Stock Exchange. When investors asked about the stock price after the resumption of trading of Leica Video, LeTV responded that the price trend was affected Due to multiple factors, the company can not judge the resumed share price.
Music Watch Chairman Sun Hongbin said that LeTV network will focus on the current stage to solve the company's financial constraints and supply chain problems in the hope that the company's business recovery and stability.