Waving a sleeve and not taking a cloud away, Xu Zhimo’s poet tenderness never belongs to Sun Hongbin. This Shanxi businessman who has taken a hitting position in land bidding and corporate mergers and acquisitions in recent years is not only unaware of 'quietly'. It will never be 'lightly'.
Sun Hongbin, who was originally appointed until October 13, 2018, left the position of chairman of LeTV as early as 7 months ahead of time, and withdrew from the board of directors and no longer held any position in LeTV. On the day of the resignation of March 14, LeTV The network (300104.SZ) opened at 13:00 to check the suspension of trading. On the 16th, the resumption of trading on the first day of stocks was hit by a word limit. After two days of weekend closure, the stock tumbled 9.95% on March 19, closing at 5.34 per share. yuan.
Earlier, Sun has repeatedly expressed his regret about the huge infusion of LeTV's confidence and the inability to lead LeTV out of the quagmire on public occasions. This is only 8 months apart from his ambitious attitude towards LeTV. To his message in his personal micro-blog: We know advance and retreat, in giving up, no one is more decisive than us. In fact, the 55-year-old grandson, Xiao Xia.
Sun Hongbin’s withdrawal led to speculation about the future direction of LeTV. “The bankruptcy”, “Delisting”, “Top Internet companies took over”, and all kinds of rumors were heard.
As regards the land assets deemed by Sun Hongbin as the most fancy, it seems that it may not be as beautiful as 'Jinliu Riverside' as expected.
Those places in those years
Sun Hongbin made a series of 10-billion-level attacks in a short period of time. His attempt to combine Sunac, LeTV and even Wanda to create a “better life” really shakes the Chinese business community and capital markets. It was once concluded that according to Sun’s acquisition path, The “better life” in mind should be: First buy a set of Sunac's house, open LeTV, accompany relatives to watch LeTV’s TV show, hold LeTV to schedule Wanda’s movie, and spend the weekend with relatives visiting Wanda City.
The first step of the “Better Life” scenario is still the original main business of Sunac, which is the building of a house. At the beginning of Sun Hongbin’s integration with LeEco, it was widely believed that Sun took a look at the apparent landslide of LeTV.
According to the summary of LeTV's public information, LeSpot's land reserves across the country are equivalent to the size of a medium-sized real estate company. The land size is estimated to be approximately 25,920 acres, with a valuation of approximately RMB 20 billion, and is mainly distributed in key cities.
In addition to the commercial real estate World Trade Square and Gongsan project in Sanlitun, Beijing, where Rongchuang was associated with LeTV at the time, Jia Yueting claimed to have developed about 3,000 acres of ecological agriculture industrial park in Linfen, Shanxi in more than a decade of 'leapfrogging' development. 2015 In September, Levision and Chongqing Municipal Government reached a strategic cooperation. The latter claimed to provide 100 acres of land for the construction of LeTV’s headquarters base; on November 9, 2015, LeTV won 195 acres of pure residential land in Chongqing’s Liangjiang New District for 420 million yuan. With 187 acres of commercial land; in December 2015, LeTV announced that it invested US$1 billion to win 5,500 acres of land in Nevada for the construction of Super Car Industry City.
LeTV also invested RMB 3 billion to build a hotel and apartment complex project in Jiangbeizui, Chongqing, with a scale of approximately 160,000 square meters. In May 2016, LeTV also spent RMB 3 billion to buy the wealth held by the company under the WTO Corporation. The 100% equity of New Century Company held by Practicing Co., Ltd. and World Trade and Commerce Corporation, and the World Trade Plaza and Engineering Third Project, the most important assets in the wealth age. Since then, LeTV has acquired Yahoo! in the heart of Silicon Valley for 1.65 billion yuan. With 300 acres of land, at the end of 2016, it also won a total of 900,000 square meters of industrial land in Zhejiang Deqing County Economic Development Zone at a transaction price of 279 million yuan.
In addition, LeTV signed a series of strategic cooperation with local governments to acquire land in the year when the scenery was extremely limited, including football bases, headquarters buildings, and competition lands.
According to the above land estimation, LeTV owns at least 25920 acres of land resources, and has created the fourth-ranked developer in China. Before being incorporated into LeTV and Wanda, Sunac reported a land bank of 33.75 million square meters in the 2016 semi-annual report. m, LeTV's land reserve is basically half of Rongchuang's own land bank.
Who has the final say on quality assets?
Since Gan Wei, the wife of Jia Yueting, the former founder of LeTV, was Chongqing, in Leshi’s land bank, the highest quality land resources were concentrated in Chongqing, including two residential lands in Liangjiang New District. In December 2017, Sunac Its Chongqing Rongchuang Jiye Real Estate Co., Ltd. has wholly acquired 100% of the shares of Chongqing Leshijie Real Estate Development Co., Ltd., and incorporated 382 acres of high-quality land in Chongqing Liangjiang New Area into its subordinate.
It is understood that the two land parcels that LeTV won for the year at a total price of 420 million yuan will have a floor price of 1054 yuan per square meter. According to relevant data, the land price for the latest land sales in Chongqing’s Liangjiang New District has been Reached nearly 5,000 yuan / square meter.
But apart from that, Le Tour’s land reserves, which were generally favored by the outside world, are mostly 'less valuable' industrial land and commercial land. They are closely related to the development of the industry. Many may become bleak cheques and cannot bring reality to Sunac. For example, the plan to build the Leshi Super Eco City with Tianjin City, build a youth soccer base with the Haikou government, and establish a headquarters building project in Shenzhen will become empty talks with LeTV’s related industries.
Commercial projects in Tier 1 cities may not necessarily bring substantial benefits to Sunac. For example, in Shishi Gongsan, LeTV Holdings obtained 100% equity in the World Trade Work III project for 2.972 billion yuan before the LeTV crisis. After the crisis broke out, LeTV has repeatedly looked for buyers and business partners, but because of price reasons are unsuccessful. At present, many brands of merchants settled in the commercial project chose to suspend business or to withdraw directly.
As for the LeTV headquarters building located near Yaojiayuan Road, Chaoyang Park, Sihuan, Beijing, it appeared on the announcement of the sale of intermediary companies at the end of 2011. The building has an area of 20,000 square meters and sells for about 1.4 billion yuan.
Not only the real estate business. Sun Hongbin wanted to revitalize the 'quality assets' including LeTV, LeTV Zhixin and LeTV. It did not develop as expected. LeTV was injected into LeTV. It was promoted by Sun Hongbin. In the number one project, Sun’s even obtained full control of LeTV’s business through capital increase, in the hope of accelerating the restructuring process. However, on January 19, 2018, an announcement announced that LeTV’s restructuring failed, and Sun Hongbin’s hopes were shattered.
According to Sunac's 2017 semi-annual report, Sunac Capital's investment was partially extended from the loss of RMB 2.355 billion in the first half of 2016 to RMB 3,972 million, of which, the total investment loss to LeTV and LeTV was RMB 3.919 billion.
LeTV’s outlet is still a mystery
The retreat of Sun Hongbin, and the announcement that LeTV’s performance was a huge loss in 2017, once again triggered public speculation about the delisting, bankruptcy, and restructuring of LeTV.
On February 28th, LeTV released a performance report. In 2017, LeTV.com achieved an operating income of 7.463 billion yuan, a decrease of 66.06% from the same period of 2016; net profit attributable to shareholders of listed companies was a loss of 11.6 billion yuan, a decrease of 2192.53 from the same period of 2016. %.
According to the announcement, the company’s operating income, operating profit, and substantial decline in total profit were mainly related to the company’s advertising revenue, terminal income, and member income, etc., which were related to the substantial decline in the company’s daily operating costs and financing costs. Meanwhile, the company’s expectation The provision for bad debts of related party receivables is approximately RMB 4.4 billion, while impairment charges for long-term assets such as film and television copyrights in intangible assets and available-for-sale financial assets are devaluated. A provision of RMB 3.5 billion is made. .
The most troublesome thing is that 'the wall is down.' The latest information about LeTV's online fraud once again caused a slump in the online world. Sources said that the People's Procuratorate of Yangzhou City, Jiangsu Province, accused China of becoming a CSRC from 2000 to 2012. The Li Chao, director of the issuance and supervision department's issuance auditing division, and the deputy director of the GEM issuance supervision department provided assistance to 9 companies including LeTV Information Technology (Beijing) Co., Ltd. for public offerings or listings. From 2000 to 2013, they received the financial contributions from the above-mentioned corporate investors, totaling RMB 6,936,200.
Just five days before Sun Hongbin announced his resignation as the chairman of LeTV, the Shanghai Stock Exchange and the Shenzhen Stock Exchange issued the “Measures for the Implementation of Major Offenses of Compulsory Delisting of Listed Companies (Draft for Soliciting Opinions)” through the official website, stating clearly that the listed company was made public for the first time. There are false records, misleading statements or major omissions in the issuance of a stock application or disclosure document, which was determined by the China Securities Regulatory Commission as a fraudulent issuance of a decision of administrative penalties, or a guilty effective referee made by the People’s Court pursuant to Article 160 of the Criminal Code. Forced delisting.
However, some market observers pointed out that the above-mentioned news involving Li Quan was 'old news', and did not rule out the use of public opinion by relevant forces to influence LeTV's stock price. The data showed that on March 19, hot money from Fujian passed Huatai Securities, Huafu Securities, investment promotion. The securities are located in the sales department in Xiamen, Putian and other places, and the bottom of the bargain-hunter is 61 million yuan within 4 hours.