Sun Hongbin, 'willing to lose the game', has gone away. He has become the A-share 'Losing King' with a loss of RMB 13.9 billion. Jia Yueting has not yet come back... Now LeTV has fallen into a precarious situation.
On May 8th, in response to the annual report of LeTV, Shenzhen Stock Exchange sent a 15-page inquiries with a total of 33 questions, referring directly to the core performance continuity in LeTV's annual report, changing the actual controller, and assets. The impairment provision and whether it may trigger negative net assets lead to suspension of listing and other issues.
Today (May 14th) at 14:00 pm, LeTV.com held 2017 annual online performance briefing. The company’s chairman and general manager Liu Shuqing, CFO Zhang Hao, Board Secretary Zhao Kai, Independent Director Zheng Lu, and sponsor representative Cui Xueliang attended .
In the inquiry letter of the Shenzhen Stock Exchange and the performance briefing today, Jia Yueting's name was mentioned several times.
Will LeTV delist?
▲ Image Source: Vision China
Investors: In 2017, the annual report suffered a huge loss of 13.88 billion yuan. The accounting firm also issued an audit report 'Unable to express opinion.' Is the qualification of the listed company still secure? If the accounting firm also issued in 2018, 'unable to express opinions' ' The audit report, LeTV will delist in the future?
Zhao Kai, the secretary of the board of directors, stated: According to the relevant provisions of the “Stock Exchange Stock Listing Rules of Shenzhen Stock Exchange”, the company’s audit report in the last two years was negative or unable to express opinions on the company. The Shenzhen Stock Exchange may decide to suspend the listing of the company. If the measures taken in 2018 did not eliminate the audit report and the opinions could not be expressed, the company may be issued an audit report that fails to express opinions for two consecutive years, and there is a risk of suspension of listing.
Investors: If LeTV does not withdraw from the market, has the management of the company started to study the self-help plan?
Chairman and General Manager Liu Shuqing: At present, the company's board of directors and management are making every effort 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 with relevant financial institutions loan extension, Efforts to solve the company's operations Difficulties; Seeking third-party capital increase to solve the current financial pressures of subsidiaries; Coordinating related parties to repay the listed company's arrears by means of cash or assets. But overall, the company's current overall funding arrangements have great difficulties. The flow of extreme tension, the company's management is actively seeking all possible solutions, but has not yet formed a certain program.
Can LeTV debt be repaid?
Investors: LeTV has 2.75 billion short-term loans at this stage. Can it be repaid on schedule?
Chief Financial Officer Zhang Jian: The company's short-term borrowings for 2017 totaled RMB 2.755 billion, most of which were borrowed by financial institutions. The operating cash flow cannot cover short-term debts. The company is negotiating loan repayments with relevant financial institutions to resolve short-term debts, coordinating related parties in cash or Assets and other forms of repayment of debts owed to listed companies. On the whole, the company's current overall financial arrangements have major difficulties, the cash flow is extremely tight, and the company’s management is actively seeking all possible solutions. However, no specific plan has yet been formed.
Chief Financial Officer Zhang Jian: After assets are substantially devalued, some of LeTV's assets are in a frozen state. It is difficult for current assets to cover short-term debt as well as the company’s listed company accumulative lawsuits and arbitration cases. If such lawsuit compensation is further formed or there is Liabilities will increase the company's debt pressure.
Investors: How likely is LeTV.com's follow-up capital insolvency? Will it start to sell assets in the face of huge amounts of arrears this year? Will it be delisted?
Board Secretary Zhao Kai: At present, the company is actively recovering debt.
When does Jia Yueting pay back?
▲ Image Source: Vision China
Investors: According to the media, Jia Yueting’s FF car has arrived in China. Does this mean that future car money can be returned to listed companies?
Chairman and General Manager Liu Shuqing: The company has not been informed by Mr. Jia Yueting or its affiliates, and is ignorant of the media reported 'Jiayue Ting’s FF car has arrived in China'. However, the company is always concerned about the large number of related parties owed to the listed company system. With regard to this issue, the management team has been active on this issue and has actively maintained communication with Mr. Jia Yueting and its related parties. The company also expects that Mr. Jia Yueting and related parties can confirm the effective solution and repayment schedule together with the company as soon as possible. Rescue listed companies in the quagmire of capital shortage.
Investors: Has the company communicated smoothly with Jia Yueting? Has Jia Yueting had a repayment schedule?
Chairman and General Manager Liu Shuqing: The company’s current management team has been active and actively maintained communication with Mr. Jia Yueting and its related parties, including the recent media, and investors generally concern about the purchase of land investment by Ruichi Automobile. The company has repeatedly met with Mr. Jia Yueting. Relevant party's telephone, mail communication, and timely access to information disclosure. The company expects that through the constant communication with Mr. Jia Yueting, to solve the problem of a large number of related company debts of the listed company system as soon as possible. The listed company is currently operating very difficult, and the current management is also Attempts to change the status quo at all times, but hinder the seriousness of the capital situation, the company's normal operations can not be effectively promoted.
Investors: When did Jia Yueting owed money?
Chairman and General Manager Liu Shuqing: As of now, the company and Mr. Jia Yueting and its affiliates are negotiating for a solution. The company is currently actively requesting Mr. Jia Yueting to be responsible for the listed company’s associated debt problems. The company will take legal measures including By all means, Mr. Jia Yueting and his related parties are obliged to use cash or the related equity and assets under their control to effectively resolve their actual debt to the listed company, and to protect the shareholders’ equity of the listed company as much as possible to ease the pressure on the company’s funds. Currently, both parties are The above issues were actively discussed, but a comprehensive debt solution that could be implemented on the ground has not yet been formed.
LeTV lost its new controlling share
On April 18th, LeTV announced that the new LeTV zhijia has successfully obtained a capital increase of RMB 3 billion. The investors include Tencent, Jingdong, Suning and other companies. On the evening of April 20, the name of the new music Sensei was changed to 'Luxury'. New Electronic Technology (Tianjin) Co., Ltd. '.
Investors: Is it true that Jingdong, Tencent and Suning have all invested in LeTV homes? If so, what is the investment funds? Does LeTV have huge market development and profit margins?
Secretary of the Board of Directors Zhao Kai: The current capital increase was caused by the serious damage to the company's new brand and reputation, the difficulty of recovery of some receivables, and the extremely tight cash flow of the company. The company’s self-rescue plan was adopted by the company. The company focused on restoring the company's business and renewing its competitiveness in the industry. It hoped to save the company in the quagmire of extremely tight funds, improve the company's new operating strength, and meet the capital needs to be solved. , will enhance the company's financial strength, and at the same time optimize the debt structure. However, whether this capital increase can restore the company's business scale, there is still uncertainty. The company management will continue to work hard to actively seek all possible solutions. Thank you for your attention .
Investors: Previously, Lever Capital had increased the amount of new investors introduced into Tencent, Jingdong and other investors, but listed companies also indicated the risk of losing Lever to New Control, please specify.
Secretary of the Board of Directors Zhao Kai: After the capital increase, the proportion of shares held by LeTV will be diluted. Based on the existing agreement and the intention to increase the capital, the shareholding of LeTV will drop to 33.46% after the capital increase. As the new shares of Le Rongzhi are frozen, The current situation of the pledge, if the debt due company can not repay, the company has lost the risk of controlling the holdings of the subsidiary, which may cause the company to fail to be included in the consolidated statement of the listed company, resulting in the result of the adjustment of the consolidated statement of the listed company. The scale of income and net profit is adjusted accordingly. Thank you for your attention to the company.
Investors: Le Rongzhixin (former LeTV Zhixin) held by Leshi Holdings will be auctioned, and the progress of the auction will be affected. How will LeTV's loss of Lever Innovative Control Rights affect small and medium investors?
Secretary of the Board of Directors Zhao Kai: The 18.38% equity held by Rongzhi New Shareholder Leshi Holding is frozen, and some or all of them will enter the judicial auction process. The company’s existing management will do its best to actively seek to solve the company’s existing difficulties. Various plans, but whether or not the aforementioned incidents occurred are not within the control of the company's existing management. The company is exposed to the risk that the company will dispose of new shares of LFC, which will lose the risk of controlling its controlling subsidiaries. Thank you for your company's attention.
At 14:15 in the afternoon, LeTV.com's stock price began to dive. It fell more than 7% in the session. As of the close, LeTV.com fell 3.64%.
