On March 28th, LeTV.com (300104.SZ) resumed trading and closed at 5.12 yuan, up 0.79%, with a turnover of 1.512 billion and a turnover rate of 9.63%.
On the previous night, LeTV released a clarification and resumption announcement, revealing that its 40.3%-owned subsidiary, New LeTV Zhijia Electronic Technology (Tianjin) Co., Ltd., is still communicating with and negotiating with the parties and has not yet signed an agreement.
The new LeTV Sensei was formerly known as LeTV. It is a subsidiary responsible for LeSpot's smart hardware business, and it is one of LeTV's main sources of operating revenue. It is also a relatively high-quality asset of LeTV.com. LeTV.com stated that if the capital increase plan is completed, the new Lezhi Sensei is still a holding subsidiary of LeTV.
According to LeTV's previous announcement, Xinlezhizhizhi plans to raise RMB 3 billion in accordance with a valuation of more than RMB 12 billion. Among them, it plans to increase cash by RMB 1.5 billion from new investors and original investors; The creditors invested 1.5 billion yuan in the value of their debts.
Some industry veterans have revealed to the First Financial reporter that among the new LeTV Sensei new investors, there is no possibility of Internet giants participating. However, LeTV had previously clarified that the listed company did not form any plan and intention to introduce additional capital to investors. At the same time, it was confirmed that more than 5% of the company’s shareholders did not plan to reduce their shareholdings in the company.
Clarification: "The bankruptcy exit statement" speculated for Sun Hongbin
On March 25th, Sun Hongbin, former chairman of LeTV.com, said in an interview with the media that there are five roads in the future LeTV. Among them, the private placement of capital increase and the introduction of a new shareholder will not work. There are only 3 roads left. The first is the bankruptcy and reorganization; the second is the repayment of assets to sell assets; the third is the delisting.
These remarks triggered LeTV's March 26 suspension verification. In the announcement of clarification and resumption issued on the evening of March 27, LeTV said in this regard that Sun Hongbin was the actual controller of Tianjin Jiaru, an existing shareholder of LeTV.com, combining the current operating status of the publicly disclosed company. Information such as financial status, with reference to speculations and judgments made by relevant laws.
Up to now, 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 subsidiary currently facing The financial pressures; coordination of related parties to repay the arrears to listed companies by way of cash or assets.
However, on the whole, LeTV.com currently has major difficulties in its overall financial arrangements, and the cash flow is extremely tight. The management of the company is actively seeking solutions for all possibilities. However, no specific plan has yet been formed.
According to the previous performance report, LeTV achieved a total operating revenue of 7.46 billion yuan in 2017, a year-on-year drop of 60%; a pre-loss of 11.6 billion yuan, and provision for bad debts and impairment of some long-term assets of related party receivables of approximately 4.4 billion yuan respectively. Yuan and 3.5 billion yuan.
Regarding Sun Hongbin’s statement that “The LeTV crisis needs more than 10 billion yuan in funds and the sale of core assets is insufficient to repay debt”, LeTV said that as of November 30, 2017, the related party’s balance of arrears owed to listed companies was 75.3. Billion; As of December 31, 2017, LeTV.com had a total of 9.288 billion yuan in loans for financing loans and loans, of which 5.619 billion yuan was due in 2018. The company has further debt repayment pressure.
Analyst: Sun Hongbin's anti-jamming Jia Yueting
Liu Buchen, a senior observer of the household appliances industry, told the First Financial Analyst that Sun Hongbin, chairman of Sunac China Board of Directors, had a mystery. In the past year, nearly a year, Sun Hongbin was dealing with Jiayue Ting's “Investing” and spent 15 billion yuan to invest in LeTV and its affiliates. It was a “loser” and so Sun Hongbin tried to counterattack. In the past few months, LeTV has issued a number of announcements to urge Jiayueting, a major shareholder, to repay the huge amounts of receivables owed by related parties to listed companies and to fulfill the promise of interest-free loans to listed companies. Jia Yueting not only has no substantive reaction, but also reports that LeTV will build a factory in Nansha.
Liu Buchen believes that Sun Hongbin’s analysis of the way out of LeTV is not wrong, either reorganization or bankruptcy or delisting. The first two routes are very difficult. The final way out is delisting. The implication of Sun Hongbin's words is that the loss of 15 billion yuan has been lost, as long as Sunac is still in place. LeTV's pit is too deep, and Sun Hongbin doesn't have too many weights in his hands. He wants to rebel against Jia Yueting. If LeTV is to withdraw from the market, the blow to Jia Yueting will be great, and his LeTV project will not be able to continue.
A senior market analyst explained to the First Financial Analyst that while LeTV.com relisted today (March 28) at 5.12 yuan (+0.79%), its development prospects are still very variable. If there is no new investor to enter or increase capital, LeTV is likely to be bankrupt and reorganize. “LeTV does not eliminate the huge potential risks. "The analyst reminded that for the secondary market investors, purely game thinking, to speculate on LeTV, the risk is very high." Investors are advised to be more rational and do not follow blindly.