LeTV TV, which has long been regarded as the most premium asset of LeTV, is now facing the urgent need of capital injection and re-activation.
At the investor briefing held on January 23, Liu Shuqing, general manager of LeTV Network (300104.SZ) said that due to the combination of factors such as the extremely tight cash flow of the Company and the sluggish market demand in 2017, the sales volume of the TV industry fluctuated.
Previous media reports said Sun Hongbin, chairman of Sunac China, has started a plan to increase capital and shareholdings of the new LeTV intellectuals (formerly LeTV Zhixinxin) and hope that after the capital increase, the new LeTV intellectuals will be absolutely controlled so as to resume their activities However, at the briefing, LeTV responded that Sunac China has yet to express its intention to increase its holdings further.
However, according to music video released January 2 announcement shows that the new music as a smart home to be 12 billion yuan worth of more than the estimated financing of 3 billion yuan, of which investors have been identified, including by the actual control of Sunac China Tianjin Jiarui, It will be increased by 300 million yuan in cash, but it is noteworthy that the new music as early as 2017 intellectual property investment in 30 billion yuan capital appreciation, a year later, the valuation of the new music as intellectual has been cut.
LeTV latest announcement shows that as of September 30, 2017, the total assets of the new music as the wisdom of 10.942 billion yuan, net assets of 3.133 billion yuan, operating income of 4.973 billion yuan, net profit of 855 million yuan loss (the above data not available Audited).
In this regard, LeTV said that as of early 2017, the market value of goodwill is higher and the sales are stable and healthy, while the current financing, sales and production status of the new LeTV intellectuals are all adversely affected by the market and due to the fact that listed companies The related party's debt risk, tight cash flow affect the supplier cooperation system of the company, negative pressure from the product supply to the crediting period, etc., plus the risk of potential litigation compensation, etc., both of the financial credit and normal operation ability Has an impact.
An industry observer told 21st Century Economic Reporter that the new music intellectuals are forced to raise funds at such a low valuation, now any of the funds can be called 'life-saving money.' Music TV needs to maintain the supplier To protect the normal production and sales of products, so as to talk about the future.
Fluctuations in sales
From January 23 at the music show investors explain the meeting, we can see that music as the music home TV market where the TV is still holding a more optimistic attitude.
LeTV said that despite the overall market downturn, LeTV Super TV has not been thrown away by the traditional TV companies throughout the Chinese smart TV market, LeTV Super TV has a cumulative total of more than 10 million high-value operational users. Semi-annual report shows that the total sales of smart TV terminals such as Super TV have exceeded 10 million units and the number of super-TV active users has reached nearly 5 million.
It is learned that in 2017 the total retail sales of the domestic TV market as a whole recorded a negative growth as compared with the same period last year, and the entire television industry was in the downturn of the roller coaster market. According to different statistical standards, the sales volume in the domestic color TV market dropped by more than 5% -10%.
For home appliances, products, supply chain, sales chain links the three links, any part of the problem will have a corresponding chain reaction.
According to media reports, in April 2017, LeTV's OEMs include TPV, Foxconn, Yi Chang, TCL, Zhongqiang, etc. After half a year, only the AOC was left, and LeTV said it was negotiating new TV foundry.
In the sales cycle, 21st Century Business Herald reported that LeTV currently sells in all major channels of e-commerce, but according to the data from January to July 2017, the overall sales volume of online TV brands in January-July of 2017 decreased year-on-year 6.9%. The sales volume of LeTV Super TV dropped 55.5% from the same period of last year.
Faced with the decline in sales, Sun Hongbin last November has been lending a helping hand to the music television .At that time, Sunac Group issued a circular requiring all regional branches, all office, demonstration area or hardcover residential, apartment and tourism real estate projects To configure the TV, must use LeTV.
Content discount
Another thorny issue in front of LeTV is how users can regain their confidence in the LeTV brand.
An insider who has been responsible for the music video system, told the 21st Century Business Herald reporter, the vast majority of music video members are from the past April and October every year, the hardware as part of the Eco Promotion hardware promotions, buy hardware delivery members.But 2017 Year, there is no same intensity of marketing activities, so music as new members to reduce the existing music user is basically the original user's renewal.
According to a data collected by the reporter in 2016, 46.6% of users were watching movies within 24 hours of registration in August of this year, and some of these users are also considered to be attracted to the content registration. However, There have been very few new content or valuable content from LeTV members in the past year. "Many people around me said that the audience of LeTV members was greatly discounted."
Another employee has left LeTV told reporters that for the user, what is needed is a company's experience and brand credibility, but at present, the lack of money caused by a series of resources promised not to honor the problem has seriously affected the music as the user The degree of brand awareness in the heart, while the service experience also dropped significantly.
In addition to the lack of content, the staff also revealed to reporters, due to arrears, the original music about a few hundred outsourcing customer service has terminated the service, 'which also led to music users after-sales problem was once unmanned.' But by reporters Measured, the current customer service phone music network can get through, and artificial services.
For the decline of the status quo, LeTV Board also hopes that through continuous adjustment, to resume the development of various businesses, including the distribution of the rights and interests of the film and television, the supply of super-TV, sales, clothing, etc., in an effort to generate new revenue. At the same time, Tianjin Jiarui, the second largest shareholder of the Company, is also actively coordinating with the management of the Company to actively coordinate a series of problems currently encountered and expects to alleviate the Company's capital shortage through borrowings and capital increase, Continued to do business protection.
LeTV also said that LeTV now owns content providers such as LeTV, CIBN, Mango TV and China Digital TV, etc. In the future, LeTV will combine the strategies of mass production and eco-opening to create With the smart TV as the core of the big-screen Internet home entertainment life, and strive to become a home Internet platform for consumer upgrades tide of the leader.
But all of this is based on the premise that new funds can be injected into. On January 23 Investors' Presentation Conference, Zhao Kai, the deputy general manager of the listed company, admitted that the management of LeTV network has also realized the seriousness and urgency of the issue 'If you do not have new capital to enter, the company will face operational difficulties.'