LeTV release performance Express shows that in 2017 Le total revenue fell 66% to 7.46 billion yuan, net profit fell 2192.5% from a year earlier to a loss of 11.6 billion yuan, accounts receivable, copyrights and other assets, respectively, up 4.4 billion RMB, 3.5 billion bad debt provision and impairment provision.
At the same time, the western stock announced on the evening of February 27 disclosed that it will be impaired, such as Jiayue Ting LeTV equity equity provision of 439 million impairment provision.A senior market analyst to the First Financial said that this means that Jiantao Ting pledged Shares will be sold out in the secondary market and may eventually lose control of LeTV.
LeTV's performance dropped significantly in 2017. According to the performance report, LeTV's operating profit lost 15.76 billion yuan in 2017, down 4569.4% from the same period of last year, resulting in a significant drop in total revenue and operating profit for the following reasons.
First of all, continuing to be affected by financial constraints of related parties and liquidity turmoil, public opinion continued to be fermented and continuously expanded, which caused a significant impact on the reputation and creditworthiness of LeTV. The Company's advertising revenue, terminal revenue and membership revenue all showed more A substantial decline in the same time, the company's daily operating costs and financing costs are constantly increasing.
Second, taking into account the related party debt risk and recoverability and other factors, after preliminary estimates, LeTV expected to be related parties receivables provision for bad debts of about 4.4 billion.
Thirdly, due to careful consideration, management has identified and judged the risk of impairment of long-term assets such as film and television copyrights and available-for-sale financial assets in intangible assets. Upon preliminary estimation, LeTV is expected to reduce some of its long-term assets The value of about 3.5 billion preparation.
Performance Express also disclosed that LeTV net total assets balance of 20.63 billion yuan at the end of the reporting period, a decrease of 36% over the beginning of the period, mainly due to the recovery of accounts receivable risk provision for bad and doubtful debts, intangible assets and other long-term assets provision for asset impairment and currency Resulting in a decrease of fund balance. As at the end of the reporting period, the net assets per share was 0.61 yuan, a decrease of 88.18% over the beginning of the period, which was mainly due to the increase of equity and the decrease of shareholders' equity attributable to the shareholders of listed companies.
Western Securities announcement said that as of December 31, 2017, Western Securities total pledged shares 'music Watch' melted capital of 1.085 billion yuan of which, to melt the capital of 473.5 million yuan to Jiayue Ting, to melt into the capital of Jiayue Min Gold 296 million yuan to Liu Hong melted a loan of 240 million yuan to Yang Lijie melted the principal of 9 million yuan. Jiayue Ting, Jia Yuemin, Liu Hong, Yang Li Jie due to stock pledged repo transaction-related agreement expires, the failure to perform the corresponding contractual obligations , Has constituted a breach of contract.West Securities has filed with the Shaanxi High Court, Xi'an New City District Court, the court has formally accepted.
Western Securities also said that the stock pledged to repurchase the financing of financial assets belong to a single significant amount of financial assets, a separate impairment test, according to music Watch as of February 26 weighted average price of 4.74 yuan per share calculation, provision for impairment 439 million yuan, exceeding the net profit 30% of the audited net profit of the western securities in the most recent fiscal year.
The senior market analysts believe that if the brokerage normal brokerage handling, Jiayue Ting pledged stock will be sold in the secondary market positions, he may therefore eventually lose control of the music company, the brokers set aside impairment Preparation is just a financial approach.
The analyst said that cash flow remains the core issue of LeTV and will continue to plague the future development of LeTV for a long time even if LeTV conducts high bad debts in its 2017 annual report. To mention, risk elimination is too early to say. 'Seeking financial support to solve the problem of liquidity is the most urgent task of LeTV.'
As the second largest shareholder of Music Watch, Sunac China was regarded by the outside world as the most likely blood transfusion, but Sun Hongbin, chairman of Sunac China, not only last week after the absence of the music video resume trading Extraordinary General Meeting, the evening of February 27 during the Yabuli Chinese Entrepreneurs Forum, also declined to make any remarks on the music.
Earlier on February 23 at a general meeting of shareholders, music video, said Zhao Kai, director of the Board of Directors, LeTV network management and management of the board of the total communication is very smooth, the stock closed his personal affairs.