Obviously, Sun Hongbin, who has already expressed his unclear words, is 'willing to lose in gambling', but the reorganization has been terminated. The resumption of trading has been limited to 11 consecutive losses. In 2017, the huge loss was 11.6 billion yuan. Where would LeTV, with its huge debt default, go?
On March 26, 2018, LeTV.com announced that the public media had information about LeTV.com, which may have a significant impact on the trading price of the company's shares. The company's shares were suspended from the date of the transaction.
On the previous day, March 25, former Chairman of LeTV, Sun Hongbin, the second largest shareholder of Sunac China, said in an interview that only three outlets were placed in front of LeTV: The first was bankruptcy. The second is to sell assets to pay the debt, and the third is to withdraw from the market.
Obviously, Sun Hongbin, who has already expressed his unclear words, is 'willing to lose in gambling', but the reorganization is terminated. The resumption of trading has been limited to 11 consecutive losses. In 2017, a huge loss of 11.6 billion yuan will occur. Where will LeTV, with its huge debt default, go?
'I can't afford this pot!'
"In the past, I was a chairman and I couldn't say much. Now I am also a retailer. I am also a casual investor. I am also the person who prosecutes others. I also have to sue who. I'm losing more than others and more qualified." Sun Hongbin said.
At first, he entered the stance as a "savior," saying that the only problem that LeTV was lacking in money was to be able to do it. After a year, he chose to let go.
Sun Hongbin stated that his team has exhausted all methods, but all the roads have failed. Because LeTV is a GEM listed company, subject to many regulatory requirements, nothing can be done. 'No financial institution or individual is willing to borrow money.' To LeTV. '
An insider of LeTV.com told the reporter of China Economic Weekly that in the past six months there have been many large companies interested in investing in LeTV, including Tencent, Ali, Baidu, JD.com, Lenovo and even Foxconn, but no substantial investment has been made. Partners entered. Moreover, Sun Hongbin’s reforms at LeTV did not go smoothly. The so-called stop loss approach also failed to reverse the situation of large-scale losses. Sun Hongbin admitted that previous successful experience in the real estate industry was not appropriate for Internet companies.
On February 28, 2018, LeTV.com disclosed its 2017 Express Newsletter. According to the announcement, LeTV.com's total operating income for the year last year was 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. , Compared with the same period of 2016, the decrease was 2192.53%; the basic earnings per share was -2.9146 yuan, which was 2151.09% lower than the same period of 2016.
'I can't afford this pot!' Sun Hongbin said in an interview with the media that LeTV is extremely inexperienced and is insolvent. Many of the RMB 7.5 billion of debts will expire this year, most of which are LeTV's unlisted systems for listed companies. Arrears.
In his opinion, if LeTV wants to solve difficulties, it must introduce more than 10 billion yuan in funds, and it needs to allow money to come in reasonably. Sun Hongbin said that of the five routes he can think of, two of them cannot work: Directed additional capital increase, introduction of new shareholders, but subject to the loss of LeTV in 2017, according to the “Interim Measures for the Management of Issuance of Securities of Listed Companies of Chimpancies” stipulates that it will take two consecutive years of profit before it can be done. The current situation is not allowed.
'In addition, copyright amortization, interest has more than 2 billion yuan each year. It is very difficult to do it. The money earned does not cover interest and debt enough. Even if the core assets are sold, it is not enough to repay the debt. No cash flow, no profit.' Sun Hongbin Say.
On March 29th, when Sunac was asked at the press conference of Sunac China about whether he was a broken wrist, Sun Hongbin even more bluntly said: 'We invested 16.5 billion yuan last year and our heads were broken. What can I do? I'll borrow it again ( LeTV) 100 billion, I'm silly?'
How to respond to Sun Hongbin's Shake the Pot?
Obviously, Sun Hongbin wishes to 'hit the pot'.
Since the emergence of LeTV as a crisis, many people have sought him to say "Recorder". Since the reopening of LeTV.com, some investors, especially retail investors, have attributed the company's share price surges to Sunac and Sun Hongbin.
For Sun Hongbin's 'wrestling pan', LeTV has responded quickly.
On March 28th, LeTV rose 0.39%, and issued a clarification announcement, saying that the bankruptcy exit statement was speculated by Sun Hongbin.
The announcement stated that LeTV's board of directors and management are trying hard to solve the company's current operating difficulties: to improve business operations to restore the company's cash flow and supply and marketing system; actively negotiate loan extensions with relevant financial institutions; seek third party capital increase to address the subsidiaries currently facing The financial pressures; coordination of related parties to repay the debts owed to listed companies by way of cash or assets.
Regarding Sun Hongbin’s statement that the LeTV crisis requires more than 10 billion yuan in funds to sell core assets to repay debts, LeTV said that as of November 30, 2017, the balance of related parties’ arrears on listed companies amounted to 7.53 billion yuan. Yuan; As of December 31, 2017, LeTV.com has a total of 9.288 billion yuan in loans for financing and loans, of which 5.619 billion yuan will be due in 2018. The company has further debt repayment pressure.
'From the very fact of LeTV to the big burst of music as the net material, Sun Hongbin's attitude behind the 180-degree transformation is thought-provoking.' Market observer Liu Buchen told reporters of the "China Economic Weekly".
He believes that Sun Hongbin’s analysis of LeTV’s outlets is not wrong, either regroups, or goes bankrupt, or delists, but the first two are difficult, and regardless of the outcome, it means huge losses for Sun Hongbin. Over the past year, Sun Hongbin spent 15 billion yuan to invest in LeTV.com and its affiliates. It was considered a 'loser'. This was the way Sun Hongbin counterattacked Jia Yueting.
In the past few months, LeTV has repeatedly issued announcements, urging major shareholder Jia Yueting to repay the huge amount of receivables owed by related parties to listed companies, and fulfilling the promise of interest-free loans to listed companies. Jia Yueting not only did not have a substantive reaction, but also came up with LeTV. The car will build a factory in Nansha and other information. LeTV's pit is too deep. Sun Hongbin does not have too many weights. If LeTV is to withdraw from the market, the blow to Jia Yueting will be great. His LeTV project will not be able to continue. Liu Buchen told the reporter of China Economic Weekly.
According to statistics, the relationship between LeTV.com's control rights is very complicated. Although Jia Yueting has been stranded abroad, he still holds 25.57% of the company's shares. This is the company's largest shareholder, 99% of which are pledged. More importantly, with the stock price falling, This part of the pledged stocks had already exploded, but it was only because it was frozen that it could not be equalized. How this part of the stock would be disposed of would undoubtedly add great changes to the future of LeTV.
Investors' feathers
'Institutional investors have gone, and the rest is speculation, hot money is being fried, and it's terrible.' Sun Hongbin said in an interview with the media, 'LeTV has now become a typical demon stock. Why institutional investors? Run away? (LesTV) Loss of more than 10 billion! (Casual investors) rushed into the news, the risk is too high. '
According to the data from the Oriental Wealth Network Choice, the number of shareholders before the reopening of LeTV.com was approximately 180,000, and it has now risen to 330,000, which means that 150,000 retail investors have entered the stadium in just one month.
A private equity analyst for the "China Economic Weekly" analysis said that the Dragon Tigers data show that institutional investors have basically sold LeTV stocks, that is to say, an increase of more than 150,000 shareholders, mostly retail and hot money. The turnover rate of stocks is also very alarming. Many retail investors hold the game mentality. This is the so-called 'chicken dish'.
'LeTV did not eliminate the huge potential risks. ' The private equity adviser said that hot money is mainly based on short-term trades it is good at LeTV, trying to gain short-term spreads, and its operation methods are bold. But ordinary investment in general trading power For those concerned, blindly following the trend before LeTV has settled, may face greater risks.