On May 14th, LeTV.com held a 2017 annual performance briefing. Board Secretary Zhao Kai stated that if the company intends to take measures to eliminate the impact of the opinion in the 2018 audit report, the company may be issued two years of continuous audit opinion. Report, there is a risk of being suspended for listing.
According to the annual financial report data of 2017 fiscal year released by LeTV, LeTV's revenue in FY2017 was 7.25 billion yuan, a year-on-year decrease of 68%; net profit loss was 13.878 billion yuan, which was a decrease of 2601.63% year-on-year. For investors, whether LeTV will In response to the question of delisting, Board Secretary Zhao Kai replied that according to the relevant provisions of the “Stock Exchange Listing Rules for 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 Suspension of listing. If the company intends to take measures to eliminate the impact of the opinion in the 2018 audit report, the company may be issued an audit report that fails to express opinions for two consecutive years. There is a risk of suspension of listing.
At the same time, Liu Shuqing, chairman and general manager of LeTV, stated that at present, the company’s board of directors and management are making every effort to resolve the company’s current operating difficulties: Improving business operations to restore the company’s cash flow and supply and sales system; actively negotiating with other financial institutions for loan extension, Solve the company's operational difficulties; seek third-party capital increase to solve the current financial pressure on the subsidiary; coordinate related parties to repay the listed company's arrears by means of cash or assets. But overall, the company's current overall funding arrangement exists With greater difficulties and extremely tight cash flow, the company’s management is actively seeking all possible solutions. However, no specific plan has yet been formed.
For the continued deterioration of the first quarter results, Liu Shuqing stated that during the reporting period, due to the company’s tight funding and the continued impact of the liquidity crisis, the company’s reputation and credibility remained in the eddies of serious negative public opinion. In the first quarter of 2018, The company's various revenues are slowly recovering. At the same time, due to the characteristics of the company's industry, except for the normal operating costs (such as CDN fees, amortization costs, labor costs, etc.), the company's financing costs during the reporting period has not declined significantly. Lead to the company's operating losses of about 307 million yuan in January-March 2018.
In addition, it was recently reported that Jia Yueting’s FF car had arrived in China. Some investors asked whether this means that future car money can be returned to listed companies. In response, Liu Shuqing responded that the company did not obtain Jia Yueting or its associated The party informed that the media reported that 'Jiayue Ting’s FF car has arrived in China' is unaware of it, but he did not understand it. However, the company is always concerned about the large amount of related party debt owed in the listed company system. On this issue, the management team has been active and actively maintained with Jia Yueting. The communication between the company and its related parties, the company also expects that Mr. Jia Yueting and related parties can confirm the effective solution and the repayment schedule together with the company as soon as possible, and timely save the listed company in the quagmire of capital shortage.