Music Watch tens of billions of pre-shock market.According to the performance prediction notice of LeTV, in addition to the concern of the main business and related arrears of bad debts cause a large loss, estimated provision for impairment of intangible assets of about 3.5 billion Including the recognition of the impairment risk of long-term assets such as available-for-sale financial assets.
Reporters found that as LeTV started to cooperate with Xingen Capital to establish a M & A fund in 2016, its investment in financial assets increased substantially, and it successively invested in Coolpad Group (02369, HK) and VR sector in 2016. However, its investment results Not optimistic, 3.5 billion loss may have a small amount from unsuccessful investment.
Investment in Hong Kong stocks are now a lot of Fukui
The reporters found that the large amount of financial assets and long-term equity investments LeTV currently accumulated began in 2016. In its letter to shareholders in its 2016 annual report, LeTV said that after several years of full expansion, some non-listed systems in LeTV's ecosystem appeared The stage of the financial pressure, some of the music associated companies associated with the operation has been affected, hindered the realization of the music Watch's profits.
Behind the outbreak of the capital chain of associated enterprises, LeTV greatly increased its investment in tradable financial assets during the year. In 2016, LeTV Network established Shenzhen through the joint venture with Xingen Capital, which had not yet cleared its positions in the top ten shareholders, City Music as Xin root mergers and acquisitions fund investment management companies (hereinafter referred to music as M & A fund), want to expand its mergers and acquisitions Tim Chai fire: 'The establishment of the fund aims to focus on eco-TV industry chain upstream and downstream related to the company's investment opportunities, the layout Content industries and areas related to Le Eco.
According to the plan at the time, the music and M & A Fund initiated the establishment of a total scale of 10 billion yuan of M & A funds, a scale of about 4.8 billion yuan, so far, the fund total investment of 4.349 billion yuan.
With the support of the fund, the balance of music financial assets available for sale at the end of 2016 increased by 959.69% as compared with the end of 2015. The book value increased from 159 million yuan to 1.692 billion yuan, mainly due to the equity investment in joy animation shares Limited, LeTV Creative Technology Co., Ltd. (hereinafter referred to as LeTV Creative), Shenzhen Ultra-dimensional Technology Co., Ltd. (hereinafter referred to as Shenzhen ultra-dimensional) and many other companies.
As of the end of the year, LeTV as available-for-sale financial assets investee a total of 12. Among them, especially for the focus on the investment of Coolpad Group, LeTV merger fund to Cool Group 8.88 billion yuan to buy Coolpad Group 55.1 billion (Shareholding ratio of 10.99%) of the right to stock calculation, we can see the cost of its shareholding of approximately 1.61 yuan per share, while as of January 31, Coolpad Group shares of 0.72 Hong Kong dollars (about 0.58 yuan).
In addition to the mergers and acquisitions of the financial assets mentioned above, LeTV Group, which is responsible for the television business in 2016, also subscribed for the newly issued shares of TCL Multimedia Technology Holdings Limited of 349 million shares at HK $ 6.50 per share for a total consideration of RMB1,906 million, Compared with 20.10% .This makes music TV long-term equity investment year increased 20509.75% .And as of January 31, TCL Multimedia's share price of 3.71 Hong Kong dollars.
LeTV has not yet announced the latest earnings of its investment in Cool Group, but LeTV Holdings has already revealed a loss for its investment in Cool Group. From January 4 to January 11, Cool Group announced twice that LeTV Mobile Holdings controlled Leview Mobile HK Limited (Leview Mobile) to sell its shares in Coolpad until its full clearance, at the first sale, the price was HK $ 0.9 (about RMB0.72), which allowed for more than HK $ 3 per share in 2015 LeTV Holdings faces huge losses.
It is noteworthy that, as the second sale of music group Cool Group stake was not announced, but the number of shares sold is 551 million shares. "Daily Economic News" reporter tried to interview this site, but as of press release failed to respond.
Investment fund loss risk has been exposed
LeTV admitted in a recent announcement that since 2016, the fund has invested in TCL Multimedia Technology Holdings Co., Ltd., Coolpad Group Ltd., LeTV Creative Technology (Beijing) Co., Ltd., Shenzhen Super Multi-dimensional Technology Co., Ltd., Shenzhen Huixin Bridge Internet Finance Technology Services Co., Ltd. and other projects, with a total investment amount of 3.425 billion yuan, respectively.At present, there are book investment losses, project closures and other issues, the fund has the risk of loss.
In the semi-annual report for 2017, among the available-for-sale financial assets owned by Lotte Media, among the best values of LeFon Group except LeTech and Shenzhen Ultra Multi-dimensional, the book balance of both is 300 million Yuan. As of the semi-annual report, None of them, including Coolpac Group, made any provision for impairment.
"Daily Economic News" reporter found that TCL Multimedia, Cool Group's equity or shareholding interests of the investment Fukui is not the only problem facing the music as M & A Fund. LeTV and Kingdoc Shenzhen as the strategic significance of VR Technology companies, the current situation seems not ideal.
Public information shows that LeTV Creative Holdings, as the owner of LeTV VR Weibo account, after LeTV VR team released layoffs, LeTV VR released a statement on May 23, 2017 Strategic transformation of the VR business, music as VR team staff along with related businesses are transferred to the MFL system.
However, LeTV VR does not appear to have completely solved its staff issues, and litigation data show that LeTV's record-setting business, like LeTV as a trading financial asset for LeTV, has been the subject of dishonesty due to labor-capital relations.
Shenzhen Super multi-dimensional official website with VR headsets and VR concept phone SuperD D1 is still in normal operation, but its official flagship store of Lynx has been unable to retrieve the official mall all goods are displayed as out of stock. The customer service staff told reporters that the official website In the maintenance, temporarily do not know when to resume, for the closure of Lynx flagship store, which said I do not know the details.
A well-known science and technology products shopping guide media practitioners told reporters that SuperD although the main concept of VR, but not optimistic about the circle, because the sales volume is insufficient to be captured by the mainstream monitoring agencies, can not know the sales data.In addition it is worth noting that, Shenzhen UltraDimensions launched the SuperD D1 handset in 2016, but no new product was introduced in 2017 in the rapidly updated mobile device market.