Improve business operations to restore the company's cash flow and supply and marketing system; Actively negotiate loan extensions with relevant financial institutions, and strive to solve the company's operational difficulties; Seek third party capital increase to address the current financial resources of subsidiaries; Coordinate related parties with cash or assets Repayment of debts owed to listed companies by other means.
Sun Hongbin is at the helm of the financial creation department and holds about 8% of LeTV. It is the second largest shareholder of LeTV. However, after more than a year of injecting billions of funds, the operating and debt status of LeTV.com has not been significantly improved. With the sharp volatility of the stock price after the resumption of trading, Sun Hongbin suddenly announced his resignation from all positions in LeTV on the evening of March 14.
On March 25th, ten days after leaving the post of chairman of LeTV, Sun Hongbin, chairman of Sunac China, finally made a public appearance. He talked about his investment in LeTV.com and the current status of the company.
Sun Hongbin pointed out that there are only three outlets for LeTV. The first is the bankruptcy and restructuring. The second is the sale of assets to pay off debt. The third is the delisting. Whether it is taking any of these three routes, the stock price wants to maintain at a better price. It is very difficult. Among them, the bankruptcy and reorganization is a more mature program, but this needs the supervision, the Beijing government, and the court to support it. Because LeTV has no assets to sell, and the delisting is unwilling to deal with all parties. Things.
Sun Hongbin bluntly stated that his investment in LeTV was 'failed'. 'In the past, I was a chairman who couldn't say much. Now I am also a retail investor. I am also a follower of others. Whoever prosecutes others and I also sue who, I'm more than others. More, more qualified.'
According to Sun Hongbin’s statement above, LeTV said that the statement made by Sun Hongbin to the media is that Sun Hongbin is the real controller of Tianjin Vision, the shareholder of LeTV. The company’s public disclosure disclosure combined with the company’s public disclosure of the company’s current operating status. , Financial status and other information, and with reference to the relevant laws and regulations made after the speculation, judgment, does not represent the company currently has the substantive programs and intentions.
Attachment: Announcement of Levitra Information Technology (Beijing) Co., Ltd. Clarification and Resumption of Trading
Stock Code: 300104 Securities Abbreviation: LeTV Network Bulletin No.: 2018-050
LeTV Information Technology (Beijing) Co., Ltd.
Clarification and resumption of the announcement
The company and all members of its board of directors ensure that the contents of the announcement are true, accurate and complete, with no false records.
Misleading statements or major omissions.
I. Rumors
Recently, LeTV Information Technology (Beijing) Co., Ltd. (hereinafter referred to as 'the company', 'LeTV.com') noticed that some of the media had reported the "Dialogue Sun Hongbin: Explaining the music dilemma and resigning the mystery of the chairman of LeTV.com," How does LeTV go in the future? Sun Hongbin said that the more realistic choice is bankruptcy and reorganization, and Sun Hongbin said that there are still three roads left to solve the LeTV problem. The report expresses some opinions on the company, mainly including: Resolving LeTV requires 10 billion RMB With the above funds, it is not enough to sell core assets to repay debts, and there are five scenarios in the future.
Second, suspension of instructions
Due to the above media reports may cause abnormal fluctuations in the company's stock price, in order to protect the interests of investors, to prevent the abnormal fluctuations in the company's stock price, LeTV.com's application for temporary suspension from the morning of March 26, 2018.
Third, clarification
For the relevant content in the above report, the company clarifies as follows:
1. The media mentioned: The 5 issues related to solving the problem of LeTV. Mr. Sun Hongbin's statement on the '5 Roads' mentioned by the media is that Mr. Sun Hongbin is the actual controller of Tianjin Jiarui, the company’s existing shareholder. Publicly disclose the company’s current operating conditions, financial status, etc., and refer to relevant laws and regulations to make inferences. Judgment does not represent the company’s current substantive plans and intentions. Up to now, the company’s board of directors and management are Strive to solve the company's current operating difficulties: Improve business operations to restore the company's cash flow and supply and marketing system; Actively negotiate loan extensions with relevant financial institutions, and strive to resolve the company's operational difficulties; Seek third party capital increase to address the current funding pressures faced by subsidiaries. Coordinating related parties to repay the listed company's arrears by way of cash or assets. But overall, the company's current overall financial arrangements have great difficulties, the cash flow is extremely tight, and the company’s management is actively seeking solutions for all possibilities. , But there is currently no established plan. All listed company related information Subject to the company announcement, the company will supervise the directors, supervisors, shareholders and other important information related to the effective implementation of insider information disclosure obligations and confidentiality obligations in accordance with the relevant rules.
2. The media mentioned that: In 2017, the company had incurred a loss of RMB 11.6 billion, and the provision for bad debts was about RMB 8 billion. The company was affected by the tight funding of related parties, the impact of liquidity crisis, the continued fermentation of social media, and the continuous expansion of its influence. The performance declined sharply. On February 27, 2018, the company disclosed the "2017 Annual Results Express" (public notice number: 2018-039). It is expected that the company's total operating income will be 746,268.76 million yuan in the reporting period, and the operating profit will be -1,575,919.40 million yuan. Profit Total RMB-1,574,152,200,000, and the net profit attributable to shareholders of a listed company was RMB-1,160,852.33 million. At the end of the reporting period, the impact of factors such as debt risk and recoverability of related parties was considered. Based on prudent considerations, the company is expected to The provision for bad debts was about 4.4 billion, and the impairment provision for some long-term assets was about 3.5 billion yuan. The provision for impairment of long-term assets such as bad debt losses and intangible assets of related party receivables was made by the company’s financial department. After the calculation, the accrual ratio is determined and has not yet been confirmed by the auditing and evaluation agencies, and the board of directors and the shareholders must be convened in accordance with relevant laws and regulations. Review. The above financial data for the year 2017 are preliminary accounting data. Without the audit by the accounting firm, there may be differences between the final data disclosed in the annual report. The company is still actively communicating with the auditing agency to promote the progress of the company's audit work. After the audit data of the bad debt loss of the receivables of the party and the long-term asset devaluation reserve are determined, the company will convene the board of directors and the general meeting of shareholders as soon as possible in accordance with relevant laws and regulations.
3. The media mentioned: The issue of solving the crisis of the Letv network needs more than 10 billion yuan of funds, and the problem of selling off core assets is not enough to repay the debt.
The company announced on January 19, 2018 the “Reminder on Risk Warning of the Company's Stocks” (public notice No. 2018-018). The company’s cash flow was greatly affected due to the large amount of related receivables of LeTV’s unlisted system. Impact: As of November 30, 2017, the balance of the related debt owed by the related party to the listed company reached 753,141,800 yuan (the above financial data was unaudited, and the final audited value is the same, the same below). At present, the company’s management is Actively coordinate the repayment of arrears with LeTV's non-listed system. For details, please refer to the “Description of Repayment due from Relevant Arrears” section of the “Clarification Announcement” (Announcement No. 2018-020) disclosed on January 22, 2018. .
As of December 31, 2017, the company had a total of 9.288 billion yuan in financing loans and loans, of which 5.619 billion yuan was due in 2018. The company has further debt repayment pressure. Currently, the company’s management is actively responding to the company’s Debt pressure, focused on reactivating the company's cash flow and supply and sales structure by resuming the development of each major business. At the same time, the company actively negotiated loan extensions with related financial institutions and worked hard to resolve the company's operational difficulties and financial pressures. The company is actively coordinating with LeTV's non-listed system and instructs related parties to effectively resolve listed company's related receivables formed by non-listed companies due to historical related transactions, thus alleviating financial pressure.
In summary, the company's current overall financial arrangements have significant difficulties, the cash flow is extremely tight, and the company's management is actively seeking solutions for all possibilities. However, no specific plan has yet been formed.
On September 24, 2017, the company disclosed "Announcement on the proposed acquisition of related party LeTV's financial business" (Announcement No. 2017-124). Currently, the debt repayment acquisition plan is in progress. The transfer of LeTV Investment Management (Beijing) Co., Ltd. is limited. The transfer price of the company's equity is expected to not exceed RMB 3 billion. Looking at the current liabilities of the company, the transfer price and the value of the small loan business license already held by the listed company are insufficient to pay off the debt amount. The company currently has no core for sale. Asset planning and related arrangements.
4. The media mentioned: Regarding the issue of the introduction of funds by Xin Le Zhi Zhijia, Xin Le Zhi Zhi Jia is a subsidiary of the company. At present, the company holds a 40.3118% stake in Xin Le Zhi Zhi Jia.
On January 2, 2018, the company disclosed the "Announcement on the Company's Capital Increase and Related Party Transactions for Holding Subsidiaries" (public notice No.: 2018-007). The company's holding subsidiary, New Lezhi Zhijia Electronic Technology (Tianjin) Co., Ltd. increased its capital. In addition to the announced parts, the follow-up work is still in communication with all parties. In agreement, the agreement has not yet been signed. If there is any progress, the company will perform the necessary approval procedures in accordance with the relevant regulations and issue a progress announcement in a timely manner. According to the company previously disclosed "About the company Announcement on Capital Increase and Related Party Transactions of Holding Subsidiary (Announcement No.: 2018-007). If completed in accordance with this capital increase plan, Xinlezhizhijia is still a holding subsidiary of LeTV. According to the disclosure of the company on February 27, 2018 The “2017 Annual Results Express” (Announcement No. 2018-039), as of December 31, 2017, the owner’s equity attributable to the shareholders of the listed company was RMB 243,640.4190 million. The 2017 financial data of the company had not yet been audited by the accounting firm. The final result of the audit report shall prevail.
IV. Situation of resumption
The company has clarified the relevant contents of the above report. The company's stock (stock abbreviation: LeTV, stock code: 300104) will resume trading on the morning of March 28, 2018.
Fifth, other instructions
The company will strictly follow the relevant regulations and do a good job of information disclosure in a timely manner. The company solemnly reminds investors that: The company's designated media for information disclosure is the designated website for information disclosure by the China Securities Regulatory Commission. Information about the company is published in designated media. In accordance with relevant laws and regulations, the company will strictly perform its information disclosure obligations and timely conduct information disclosure work. Investors are advised to invest rationally and pay attention to risks.
Special announcement.
LeTV Information Technology (Beijing) Co., Ltd.
Board of Directors
March 27, 2018