On March 26th, the Shenzhen Stock Exchange issued an announcement that LeTV.com's information may have a significant impact on the trading price of the company's shares due to public media information. The application was suspended on March 26.
On March 25th, former chairman of LeTV, Sun Hongbin, the second largest shareholder of Sunac China, said in an interview with the media that LeTV now has only three outlets: the first is bankruptcy and restructuring, and the second is the sale of assets to repay debt. The third is delisting.
Since the reopening of LeTV on January 24th this year, in the absence of any favorable conditions, 11.6 billion LeTV, with a huge loss, unexpectedly emerged from a wave of big rebound after 11 consecutive stoppages. As of the morning of March 14, LeTV The closing price was 6.59 yuan/share, which was a 58.41% increase from the lowest closing price of 4.16 yuan/share on February 13.
'I want to be responsible to retail investors. When LeEly relisted, there were only 180,000 retail investors. There were institutional investors. Now there are 330,000 individual investors. Institutions are running out. The turnover rate is very high. Some people are obviously speculating. According to 21st Century Business Herald, Zhong Hongbin even expressed his position, 'LeTV' has now become a typical demon stock.
According to the conversation record released by Mustang Finance on March 25, Sun Hongbin stated: '(LeTV) is extremely lack of funds and is already insolvent. Now LeTV has 7.5 billion creditors, many of which will expire this year. Many are LeTV's non-listed. The system owes money to listed companies. In addition, the amortization of copyright has an interest of more than 2 billion a year. How to do it is very difficult. The money earned does not cover interest and debt at all. There is no cash flow, and there is no profit.
According to LeTV's risk warning, as of December 31, 2017, the company had a total of 9.288 billion yuan in loans and loans for loans, of which 5.619 billion yuan will expire in 2018, if the scale of the company's business can not be returned to a higher level , The credit line will be restored, the company will be due to further cash flow tension led to the company's debt pressure.
Sun Hongbin seems to be more inclined to go bankrupt and reorganize this road because he confides that LeTV has no assets to sell, and delisting is something that all parties are not willing to face. 'If bankruptcy restructuring can be successful, there will be solutions. It is possible that there will be other strategies for institutional investors to come in. Because the "Bankruptcy Law" stipulates that claims are higher than equity. However, this requires supervision, the Beijing government, and court support.
As of the press release, LeTV did not comment on Sun Hongbin’s above statement.
Attachment: Announcement on the Temporary Suspension of the Stocks of LeTV Information Technology (Beijing) Co., Ltd.
The public media has information about LeTV Information Technology (Beijing) Co., Ltd., which may have a significant impact on the trading price of the company's shares. According to the relevant provisions of the “GEM Stock Listing Rules” of this Exchange, the company’s application, company stocks (securities Abbreviation: LeTV, stock code: 300104) was opened on March 26th, 2018, and will be resumed after the company has disclosed the clarification announcement through the designated media. Please pay close attention to investors.
Shenzhen Stock Exchange
March 26, 2018