According to the provisions of the GEM, unless the listed company is involved in illegal activities, such as financial fraud, or a loss for three consecutive years, it will be delisted. LeTV has not been investigated by the Securities Regulatory Commission and its performance has only suffered losses last year. There is a possible delisting possible.
Who would have thought that two months after saying 'willing to lose in the game', Sun Hongbin would really choose 'put in the towel' and take the initiative to hand over management rights of LeTV (300104.SZ)?
On the evening of March 14th, the announcement disclosed by LeTV.net formally confirmed the rumors of Sun Hongbin’s resignation from the company’s chairmanship, and also temporarily suspended the company’s previous “100 billion market value” business. However, 236 days.
The departure of Sun Hongbin once again put LeTV in an uncertain state. This listed company with a revenue of 7.5 billion in 2017 and a net profit loss of 11.6 billion has once again embarked on the crossroads of its fate. Sticking to, settling, bankruptcy , Delisting, Guessing it is difficult to make a conclusion.
On March 15th, LeTV re-clarified that there has not been any plan and intention to introduce investors into the capital increase plan. The company’s shareholders holding more than 5% of shares currently do not plan to reduce the company’s shares.
However, compared with the future uncertainty of LeTV, the lawsuits that may arise around it will gradually become deterministic events in the future.
The reason for 'departure'
More than a year ago, 'At First Love' cooperation in the 'Tung Pao Minhang' conference was held. Eight months ago, the management rights were taken down step by step, and two months ago, for the first time, 'willing to lose.' With pessimism, Sun Hongbin eventually chose to 'leave' LeTV on March 14.
According to LeTV's announcement on the evening of March 14, Sun Hongbin chose to resign because of the choices made because of adjustments in the work arrangements. The temporary replacement of Liu Shuqing who also fulfills his duties is Sunac China (1918.HK).
However, at the same time as resigning from the post of chairman, he even chose to resign as a director, which inevitably caused the outside world to think about Sun Hongbin’s resignation. Although both LeTV and Sunac China did not make an official response to Sun Hongbin’s resignation, there was speculation outside. But it did not stop there.
The pessimist thinks that Sun Hongbin’s departure is a concern for LeTV’s prospects and he has to choose to stop in time. The optimist believes that his resignation is actually paving the way for more powerful players to enter LeTV.
Yan Yuejin, research director of the Yigou Research Center, said that Sun Hongbin’s resignation is largely a 'rapid knife' strategy and is also aimed at preventing LeTV’s risk transmission. He believes that in the current operation of LeTV Many uncertainties, for Sunac China, may also reflect on such investment plans.
'So this type of resignation approach fully demonstrates the clear vision of the company's current investment strategy for LeTV, which is a stop-loss strategy. Of course, the follow-up does not rule out that there will be other strategic actions, but the first thing to do is to reflect on the financial innovation. The investment plan and earnings considerations. ' Yan Yuejin said.
An executive from a Beijing-based private equity firm believes that Sun Hongbin’s exit from LeTV’s management rights even with “stop-loss on time” may be due to three reasons.
'One is pessimistic about LeTV's future operating performance. This can be seen from its current performance; the other is indeed a personal work arrangement. After all, Sunac is now involved in a number of huge capital acquisitions. It is also possible that less energy is invested in LeTV. The third, I think, may be due to Sun Hongbin's desire to become a major shareholder of LeTV after being unwilling or a strategy to retreat. 'The above private equity executives said.
As the chairman of Sunac China, Sun Hongbin has not only dominated the shareholding of LeTV. It has also participated in the “Century Trading” with Wanda Group since the last year. Recently, Sun Hongbin has acquired two HNA Group’s subsidiaries for a price of RMB 1.9 billion. Home real estate company.
For the third possibility, the private equity executive explained that although according to the information disclosed by LeTV, Jia Yueting holds most of the shares of LeTV, he is in a state of collapse, but since this part of the shares are all in a judicial freeze, the organization also cannot Enforcing enforcement, 'So LeTV's risk of changing hands at any time, but currently Jia Yueting is still the largest shareholder in name.'
Previously, 21st Century Business Herald reported that Sun Hongbin had hoped to accept the equity in Jia Yueting's hands at a lower price, thus becoming LeTV's largest shareholder. However, the transaction was ultimately unsuccessful due to price reasons. However, LeTV's announcement stated that Sunac China currently does not have plans to increase its holdings.
"(Sun) becomes the largest shareholder, and it will be more conducive to the subsequent capital operation of LeTV. However, even if Sun Hongbin does a good job of LeTV now, Jia Yueting is the one who will ultimately benefit more. 'The above private equity executives Say.
Four possibilities
The sudden departure of Sun Hongbin also made the outside world even more pessimistic about the future of LeTV, which is deeply immersed in the vortex. Although after the Lunar New Year, LeTV's share price has risen sharply by more than 58%, and since the stock price change was announced on the afternoon of March 14, it was announced. Suspension check.
According to industry analysts, from the current problems with LeTV, the possible outcomes of this former 'star company' are nothing less than four kinds. First, although Sun Hongbin has already chosen to resign, whether or not he sticks to it cannot be determined; Sun Hongbin's resignation is to prepare for the introduction of a new strategic investor; third is bankruptcy and restructuring; fourth is delisting.
'Although four possibilities may appear, but after careful analysis, we will find that the future development of LeTV is actually much more complicated. 'Shen Meng, executive director of Chanson Capital said.
Shen Meng believes that from the resignation of Sun Hongbin, it is the second largest shareholder of LeTV. Under the current circumstances, continuing to adhere to listed companies is also risky. LeTV currently has no quality assets to inject. In addition, Sun Hongbin and Ruichuang itself The development strategy has little relevance.
'As for the introduction of war games, it is a good choice for LeTV. However, the huge loss of goodwill has already triggered a credit crisis. Many of our existing partners take a wait-and-see attitude towards follow-up cooperation, which will have a great impact on the future business of the company. Impact. ' Shen Meng explained.
This point was also clarified by LeTV.com on the evening of March 15. LeTV.com stated that it has not formed any plan to introduce investor replenishment plans and its intention. At the same time, it has been confirmed that shareholders holding 5% or more of the company’s shares do not plan to reduce their shares.
It is worth noting that the market is rumored recently that LeTV may enter bankruptcy and reorganization procedures, or there may be a possibility of delisting. However, 21st Century Business Herald learned that even if these two channels are chosen, it still exists for LeTV.com. Many problems.
According to a Shanghai-based securities lawyer, a bankruptcy-reorganization is not initiated at the shareholders level. The bankruptcy of a listed company needs to be approved by the relevant court in addition to the need to reach a unanimous agreement with the creditor. There are too many departments, and it's a big question whether they can get full support.
'As for the delisting, according to the current GEM regulations, unless the listed company is involved in illegal activities, such as financial fraud, or a loss for three consecutive years, will be delisted. At present, LeTV has not been investigated by the Securities Commission, the performance is only Losses last year, there is no mandatory delisting from the rules. 'The securities lawyer said.
However, the lawyer said that LeTV can also choose to voluntarily withdraw from the market, but this approach also faces tremendous pressure from investors.
The 21st Century Business Herald reporter learned that in the consecutive fall after the resumption of trading in January, some of the heavily-funded public offering agencies have already withdrawn, but individual investors are madly influx. According to media reports, the current number of shareholders of LeTV.com has resumed trading since January of this year. The previous 180,000 surged to the current 336,000. Therefore if LeTV chooses to withdraw from the market, how to deal with the surging public opinion of small and medium investors will be a great test.
It is worth noting that some changes centering on LeTV are also taking place. One investor who has been forced to close out LeTV.com's “Two Financial” investors said that recently the court issued a notice of 'redress', and at the same time The Securities and Futures Commission will also give a reply to his related demands, 'This is something that has not happened before.'