On the afternoon of May 14th, LeTV.com held the 2017 annual performance briefing today. The company’s chairman and general manager Liu Shuqing, CFO Zhang Hao, Board Secretary Zhao Kai answered questions from investors.
On April 18, Le Rongzhi Newly announced to increase capital by cash and debts in accordance with a valuation of RMB 9 billion with no more than RMB 3 billion, Sunac, Tencent, Jingdong, Suning Sports, TCL, Billion Group, SEGA Holdings, Design Valley, Jinrui Xianhe Hony Capital is a new intentional investor of Lefusion.
Zhao Kai said that the current capital increase was caused by the company’s self-rescue program under the background of the fact that the company’s new brand and reputation are seriously damaged, and some receivables are difficult to recover, resulting in extremely tight cash flow of the company.
The current management of the company focused on restoring the company's business and renewing its competitiveness in the industry. We hope to save the company in the quagmire of extremely tight funds, improve the financial strength of the company, and meet the capital needs to be solved. This is a new introduction to the company. Strategic investors will enhance the company's financial strength and optimize the debt structure at the same time. However, whether the current 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.
Liu Shuqing also stated that the company’s disclosed counterparties and capital increase amount are the results of the current communication between the company’s holding subsidiary and the parties. The follow-up needs to carry out the necessary related work and internal approval procedures according to their needs. The company is still in various transactions with the company. The other party actively communicates, and if relevant, the company will promptly announce the progress of the capital increase. In addition, the company has previously disclosed relevant agreements with Tencent, Jingdong, Le Rongzhi new and Tencent in the living room content, and Jingdong in the field of e-commerce, members Fields of account, advertising systems, logistics, voice technology, music and new product procurement, unrestricted retail, and other in-depth business cooperation.
In April of this year, LeTV.com’s subsidiary, Lele Wisdom Electronic Technology (Tianjin) Co., Ltd. has processed the business procedures of the name change, etc., and renamed it as “Landray New Electronic Technology (Tianjin) Co., Ltd.”. Liu Shuqing stated that this is for further In line with the company's new strategic adjustments, Music Fusion made a name change, and the company's brand has not been adjusted.