On the afternoon of March 25, 2018, Sun Hongbin, Chairman of Sunac China's Board of Directors, disclosed his intention to make this decision for the first time after he resigned as chairman of LeTV. He told reporters that he did not want speculators on the market to use his financial resources. A credit endorsement was used to speculate on the stock price, causing the minority shareholders to suffer losses.
'LeTV is already a demon stock, stock prices have skyrocketed and plummeted. I can't afford this pot.' The data shows that since LeTV resumed trading, the agency has fully withdrawn, but the number of retail households has risen from the initial value of about 180,000 yuan. It soared to around 330,000. 'Although the company did a lot of risk warnings during this period, investors in the market still rushed into the company without fully understanding the company's value and logic.'
After leaving the chairman of LeTV, Sun Hongbin was a black T-shirt and looked rather relaxed. He laughed and said, 'Look at it!' He took advantage of Sun's usual free and easy start, and no longer had the energy to take over in early 2017. Then there was a heavy case when faced with investors in August 2017.
This time, Sun Hongbin admitted that his investment in LeTV was a failure. He admitted that although there are three paths that can be taken before LeTV, the roads are very difficult, and the result will be that their investment will be lost.
Small shareholders should not blindly
Judging from the public information, the current situation of LeTV's listing system LeTV is very difficult. According to Sun Hongbin's words, it is 'the days can't go any longer'. However, in this context, there are still small shareholders who have rushed into the market. As an extremely dangerous act.
Based on his responsability towards minority shareholders, Sun Hongbin chose to resign to warn the market and announced his pessimistic attitude towards LeTV.
'Investors' previous investment losses have nothing to do with me, but many new ones came later because of the existence of me and Sunac. For example, a friend recently told me that since I bought LeTV, he also rushed in. This is undoubtedly the market use of my credit endorsement to misjudge the value of LeTV. If it causes the stock price to fluctuate and then drop, causing investors to lose, I can't afford to back this pot.
From this perspective, in order to avoid market use of his personal and Sunac credit endorsements to speculate on LeTV stock prices, Sun Hongbin chose to resign as the chairman of the most important reason. The data show that since LeTV resumption of trading, the stock price has fluctuated On the afternoon of March 14, the Shenzhen Stock Exchange announced that the recent stock trading fluctuations of LeTV.com were relatively large, and the trading was suspended from 1 pm.
It is also March 14, LeTV said Sun Hongbin has resigned from LeTV's position as chairman of the board. 'I will be a small shareholder in the future, and I have lost more than others.'
In January 2017, Sun Hongbin’s Sunac China invested RMB 15 billion in LeTV. LeTV and LeTV made 8.61%, 15% and 33.4959% of the shares respectively. He was elected as the director of LeTV on July 21 of that year. According to incomplete statistics, together with Rongchuang as a guarantee provided by LeTV, Sun Hongbin's total investment in the LeTV system is close to 20 billion yuan.
After resigning, Sun Hongbin, the first thing to do now is to let the market understand the real situation of LeTV, to avoid the blindness of individual investors being blinded by the false news disseminated by speculators. 'I used to be a chairman and I couldn't say much about it. Now I am also a retailer. Whoever I want to follow, who I am following, who I am sue against, who I am also suing, I have lost more than others and are more qualified.'
According to statistics, LeTV is still a mess: In 2017, the net profit was estimated to be 11.6 billion yuan; the related arrears of 7.531 billion yuan, debt default, lawsuits, etc.
LeTV 'dead knot' is difficult to solve
At present, LeTV is faced with an embarrassing situation. It is of utmost importance to reorganize the main business to allow LeTV to continue its operations.
As of last Friday's close, LeTV's market value was 20.2 billion, but according to Sun Hongbin, the current value of LeTV is virtually zero, even negative, because of debt and business difficulties. 'We have zeroed this investment.'
Judging from the current policy and objective conditions, there are only three ways to go before LeTV:
The first is bankruptcy and reorganization, but it needs multiple support from regulatory agencies, and the cycle is long, and even if it is restructured, it needs no less than 10 billion in capital. There is no capital to enter in the current environment. The second is to sell assets to repay the debt. The operation has been very difficult, but it can maintain current profits, and it will barely maintain its listing status in the short term. The third is delisting.
Either way, it is not easy in the current situation. 'In terms of restructuring the first route, the reality is very difficult, it involves litigation, the cycle is long, and the longer the time is, the greater the impact on investors. As for the second way to sell assets, it does not solve the problem of long-term cash flow and profits.
To some extent, LeTV has fallen into the embarrassing situation of dilemma.
In the face of such a result, Sun Hongbin said it was quite 'regretful'. 'The original logic for LeTV's investment was still correct, because the big entertainment is still a trend under the 'better life' background, and it was already considered a good one when it came to accounting. The money that was put in was originally sufficient for several companies to operate normally. However, there was too much money in the call, and the funds collected by related companies could not be returned.
The so-called related parties misappropriated funds, and LeTV has published an announcement to disclose: Since 2016, the company has formed a large number of related receivables through sales transactions such as the sale of goods to related parties controlled by Mr. Jia Yueting, the provision of services and other transactional businesses, and interstitial fees. And the prepayments. As of November 30, 2017, the balance of the related arrears of the related parties to the listed company reached 7.53 billion yuan. If the related parties were used for LeTV's funds, the cost was as high as 9.2 billion.
Willing to lose
As Sun Hongbin resigned from the position of LeTV's chairman, his personal endorsement of LeTV.com was to some extent ended. At the same time, he also expressed his 'abandon' mentality.
For the initial investment, Sun Hongbin concluded that there were several mistakes: First, there was an error in the judgment of the company's value, which initially overestimated its true value; Second, the company’s financial status also lacked sufficient understanding. It was originally thought that the related party’s The funds could be recovered but they could not be recovered. Third, the judgment of the team was insufficient. Although Jia Yueting brought many cattle, it did not form a synergy.
For Jia Yueting, Sun Hongbin still maintained a goodwill evaluation, saying that 'his entrepreneurial spirit is commendable, but personal credit has completely disappeared. In addition, his judgment on the valuation of the company has been wrong, and the value of the company has not been evaluated by him. So high, should not give such a high valuation. '
For Sunac's investors, Sun Hongbin revealed a sincere attitude towards 'mistakes'. 'Investment is problematic, and we have achieved a deficit. We will sum up lessons learned. We used to have mergers and acquisitions failed, but there are also many successful ones. Cases. It's normal to lose or win business. '
Earlier, Sun Hongbin once said that if LeSuccess is not a good thing, it will be a regret for him in life. But now, he has accepted this regret, saying, 'It is difficult to have no regrets in life. The money invested by Sunac was basically lost. If LeTV is better afterwards, it will be earned.'
However, Sun Hongbin’s current pessimism is LeTV.com, which is the listing system. New LeTV Entertainment (former LeTV) and New LeTV (Yue Lezhi) are still advancing their work.
According to reports, once the company had made a capital increase of 1 billion yuan for the new LeTV Entertainment (LeTV), the company has basically maintained its normal operation. 'This piece will also be increased once in May and June. I am also more confident. The outlook is also good. '
The situation of the new LeTV Sensei (LesVision) is relatively complex. According to the existing equity relationship, LeTV.com holds Levision’s 40.31% equity stake in the largest shareholder, Tianjin Jia Rui holds LeTV's new 33.49% stake. As the second largest shareholder, Levision Holdings holds Lexus' new 18% stake as the third largest shareholder.
Sun Hongbin emphasized that regardless of the future business prospects of the new LeTV Entertainment (former LeTV) and the new Le Zhizhi (former LeTV), they have nothing to do with LeTV and will not have a positive impact on LeTV's operations.