Financing risk exposure
June 2016 years ago, LETV as a result of 4 billion 800 million yuan to increase the suspension of nearly six months, the period of financing in the stability of around $3 billion. With the resumption of trading in June 3rd, LETV share price was rushed to close to 61 yuan, while financing passengers also began to intervene in the music as large as the network, so that the stock of the balance of the rapid increase in the amount of $5 billion to $two. On the first day of resumption of the stock, had set a record of nearly 2 billion yuan to buy a single day of financing, the proportion of the amount of the day to buy music as a net turnover of more than 16%.
For LETV finance investors, if the resumption date from June 3rd held LETV, the stock has suffered a decline of nearly 50%. According to the first financial reporter to understand the situation, the current brokerage two financial services to maintain the security line ratio of 140%, the opening line of 130%, the overall leverage is not more than 1:1.
In November 2016, LETV shares fell before the two financial plate is always maintained at 5 billion yuan above, but with the capital chain crisis gradually exposed, LETV in December 7th began the suspension, the suspension period of continuous disc financing has shrunk, once dropped to 4 billion 400 million yuan. Since then, LETV formally introduced from the financial crisis in China's 10 billion war, on January 16, 2017 resumption.
Also due to the music market share price fell to face similar risks, as well as some of the core music network of the employee stock ownership plan. September 20, 2016, LETV first phase of 510 million yuan ESOP formally completed. The employee stock ownership plan to buy music as a total of 10 million 953 thousand and 500 shares, representing the company's total share capital of 0.55%, locked for a period of 12 months.
LETV announcement shows that the employee stock ownership plan in the form of a hierarchical information management products, leverage ratio of 1:1, the share of the preferred share and the proportion of poor post adjustment to 1:1, the upper limit of 510 million copies. At that time 46.61 of the average price of the purchase, the current deficit has exceeded 30%.
Important shareholder withdrawal?
Following the previous day fell 4.2%, in March 3rd LETV shares fell again again. Intraday fell 8.12%, eventually closing at $31.89 / share. Within a week, LETV shares have fallen by about 12%, and this price is close to the bottom level of August 2015.
October 30, 2015, Xin Yuan fund to 3 billion 200 million yuan from the hands of Jia Yueting disk access LETV nearly $100 million shares, after the completion of the transfer, Xin Yuan fund will hold the company's stock of 5.39%.
In 2016 three quarterly show, the top ten tradable shareholders LETV in addition to Jia Yueting and brother Jia Yuemin, only Shenzhen City Xin root the next generation of disruptive technology mergers and acquisitions fund one investment partnership (limited partnership) has more than the bulk trading stocks and Central Huijin company.
Three quarterly report also shows that the number of shares held by Xin root fund has been reduced to 70 million 50 thousand shares in the first quarter of 2016, the fund has a total reduction of 29 million 950 thousand shares of the stock in the first quarter of. Among them, the third quarter of the fund to reduce the number of root Zhongxin LETV is 23 million 350 thousand shares; the first two quarters, Xin root fund holdings of 6 million 600 thousand shares.
Public information also shows that the three quarter of 2016, the number of shares of CITIC Shenzhen Wanghai LETV business department through the trading of selling happens to be 23 million 350 thousand shares. Prior to June 20, 2016, the two large transactions LETV, sell seats are CITIC Shenzhen Wanghai business department, and the number of transactions is just 6 million 600 thousand shares. The first financial access to eye found CITIC Shenzhen Wanghai Business Department of CITIC Shenzhen before the sea is the predecessor of the business department.
The market questioned the sound of four, and this is the root Xin fund holdings, LETV reply to the first financial reporter said, there are strict regulations related disclosure requirements, the company will perform in accordance with the requirements of information disclosure, the relevant fund or consider Xin root cause concern Xin letter content.
Three of the Quarterly Bulletin shows that as of the end of September 2016, LETV top ten shareholders, including Central Huijin, the post fund, Wu Mingxiao and other institutions, individual investors. Among them, the Central Huijin holds 27 million 790 thousand shares, the shareholding ratio of 1.41%; Cao Yong, Wu Mingxiao respectively holds 32 million 640 thousand shares, 14 million 100 thousand shares, the shareholding ratio of 1.63^%, 0.71%, the post fund through the two funds together hold about 32 million 320 thousand shares, the total stake of 1.64%. In addition, the top ten tradable shareholders, Liao Jun, Huarun deep country investment trust moist number 143 set trust, also holds its own shares of the 11 million 430 thousand, the stock of $10 million 950 thousand.
The investors, the Central Huijin, Wu Mingxiao, Liao Jun, Huarun shenguotou and No. 143 shares, all shares, a total of nearly 64 million 300 thousand shares. And Cao Yong, in the post of shares held by the fund, to get rid of 11 million 320 thousand shares, the sale of shares of the restricted shares, there are also 21 million 320 thousand shares, the shares of the 19 million 220 thousand shares of the circulation of the shares of the company, the company's shares are not limited to the sale of shares, the shares of the shares of the restricted shares, there are also 13 million 100 thousand shares. Thus, the removal of the shares held by Jia and music executives and other executives, the shareholders held a total of tradable shares can be sold at any time, a total of more than 105 million shares. The above shareholders, some at least in the first quarter of 2015, it has held LETV shares, part of the two quarter of the year to enter. Currently, these institutional investors have been serious losses.
Not only that, after 45.01 yuan to participate in music as a result of the increase in the amount of $4 billion 800 million a public institution currently has nearly 30% of the floating loss. Last August, CAITONG fund, Harvest Fund and China Merchants Fund, the three fund companies and Jianping cattle Sanzhang LETV given the increasing participation, one year lock up period. Due to the low price of music as a new network, the latest closing price of 31.89 yuan to calculate, to participate in the increase in the number of institutions and cattle scattered Book floating loss of up to $29.15%.
Again the risk of equity pledge
In 2016 three quarterly show, as of September of that year, Jia Yueting LETV pledged a total of 571 million shares, accounting for about 83.6% of its stake. According to the first financial reporter had obtained information, the initial LETV pledge rate was not higher than 40%, when it fell to the pledge rate is greater than 60% (including 60%), need to pay the deposit or pledge to increase the number of shares that the quality and rate of less than 45%.
By 2015 when the stock price as measured by the pledge, the pledge price of about 18 yuan. March 4th, LETV closing price of 31.89 yuan, the price of the pledge rate corresponds to the pledge of the highest price of only $19, 60%. This means that LETV equity pledge is close to the explosion point. If the LETV price continues downward, it is difficult to avoid substantial explosion.
Since then, the transfer of shares of the funds have been credited. January 16th, LETV disclosed a simple change in equity, the relevant shares have been transferred. LETV in response to the first financial reporter interviewed also said that with the financial record related to the creation of funds, most of them have been in place, the follow-up will be in accordance with the agreement between the two sides, one after another due. When SUNAC and Jia Yueting agreed, in order to ensure the stability of Jia Yueting for the company and control, within the next twelve months or both parties of other time, the equity pledge is controlled within 50%, Jia Yueting had to consider the relevant equity pledge for reasonable arrangement.
In the sum of equity transfer, Jia Yueting LETV held a total of 682 million shares, 571 million shares pledged part, transferred to the 171 million Huixin Jia Rui shares, about 60 million shares pledged state. For the lifting of the pledge of 3 billion yuan of funds, the number of shares corresponding to the pledge of about 170 million shares, there are still around 400 million shares have not been resolved.
Public information display, in January of this year, including music, including music as its three business entities, a total of $16 billion 800 million financing. But the first financial reporter had previously reported that the funds have 1 billion 430 million yuan from LETV, Jia Yueting related parties, the actual size of only $15 billion 400 million financing. These funds, transfer LETV shares all the funds and shares of film music as most of the money, because it is Jia Yueting personal direct transfer, or in absolute controlling. In addition, the transfer of Le Xin asset management as the new 44 million 170 thousand shares to Jia Rui Hui Xin (Tianjin) partnership (limited partnership) (hereinafter referred to as Le Xin asset) is LETV party management gateway, how music as network executives. Therefore, the actual funds into the hands of Jia Yueting, reached 9 billion 740 million yuan.
Xin Le asset legal representative Zhao Kai, while Zhao Kai currently serves as the network secretaries. In addition, it also served as a number of music as a supervisor of the company, the company transferred to the music as a result of the new price of 2 billion 650 million yuan. However, according to LETV disclosure, Xin Yue assets will be used as a result of the funds held by the music as holding the music as a result of the corresponding proportion of the new equity, continue to be used for employee stock ownership. Therefore, Jia Yueting can directly use the funds in about 7 billion yuan. Deduction of 3 billion yuan for the lifting of pledge pledge pledge, the remaining funds can be used directly to the home of about $4 billion.
If the music continues to fall, Jia Yueting will face more financial pressure. The pledge rate will be less than 50%, the required funds will reach about $3 billion 500 million, but whether it is completed, LETV has not yet disclosed.