With the copyright cooperation with Tencent and the supplier's debt-to-equity investment, LeTV (300104, SZ)'s TV business is trying to get out of the trap. Leshi Mall shows that LeTV is already preparing for 4·14“LeD Fan Festival”. A few days ago, an announcement published by LeTV.com revealed that the new chairman replacing Sun Hongbin has emerged, and that the crisis is still held by Mr. Liu Shuqing, a finance and risk control background.
Liu Shuqing’s background seems to be very relevant to the current situation of LeTV. The recovery of the business is only a relatively small issue compared to the stability of the capital chain. LeTV.com stated in the announcement that there is 5.619 billion yuan of debt due to the financing of loans in 2018, and the company has a relatively large debt repayment risk. With limited space for debt repayment by related parties, in addition to the extension period and renewal of loans, the further increase in the scale of borrowing to roll off debt will be the only way to solve the problem, and LeTV also announced the latest loan of 190 million yuan.
Two "New Officials" Correspond to Two Conundrums
On the evening of April 4th, LeTV announced that it had borrowed 190 million yuan, and announced that its third session of the board of directors passed the unanimous vote of the new chairman. Liu Shuqing was appointed as the new chairman of LeTV. At the same time, Li Yuhao was also considered as a director by Li Yuhao. For the candidate, both proposals need to be submitted to the shareholders' meeting for voting.
The curriculum vitae showed that the two people who were quoted both had a background "deeply". Although Sun Hongbin gave up the chairmanship, Sunac China could not give up LeTV. The successor Liu Shuqing has worked for Sunac China since 2004. Initially, it was the financial manager of Tianjin Sunac Land Co., Ltd. As of May 2017, he successively served as the director of internal control of the financial management center of Sunac China Holdings Limited and the senior general manager of the risk control center. Before September 2017, Li Yuhao had served as the investment director of Legend Holdings Limited and the head of the Internet investment department.
In other words, one is a senior financial and risk management executive, and the other tends to operate Internet-related businesses, which correspond to the financial issues and Internet TV business issues that LeTV is waiting for. Judging from some recent disclosures, the former is still a matter of life and death this year.
Just announced the new chairman and director candidates on the same day, LeTV also announced the receipt of senior management personnel Jin Jie, Tan Shu's resignation report. Jin Jie and Tan Shu applied to the company for their personal reasons and resigned from the position of deputy general manager of LeTV. At the same time, they resigned from other positions in the company and no longer held any position in LeTV.
On April 3 and 4, LeTV.com and its associated Licensing Certified Public Accountants submitted their responses to the Shenzhen Stock Exchange. LeTV.com stated that on December 31, 2017, the company had a total of 9.288 billion yuan in loans and loans for loans, of which 5.619 billion yuan was due in 2018.
LeTV from the financial point of view put forward three major measures to try to solve the problem: First, some of the debt of the extension, renewed loans, making large amounts of debt can be delayed, in the LeTV as many business continued losses, the value of the pledge itself is not stable This may be an option that some financial institutions do not choose; the second is to seek third-party capital increase to solve the financial pressure. The Daily Economic News reported earlier that recently, LeTV.com has completed some of its debt-to-equity swaps for its new LeTV WIZ, the mainstay of its television business. Third, it has coordinated the repayment of debts by related parties. Today’s reference is no longer fresh. As for the debt liquidation in 2017, the outlook may not be bright.
As of the end of 2017, the net book receivable balance of LeTV was 7.181 billion yuan (excluding other receivables, prepayments, loans and advances, the same below), related party accounts receivable accounted for accounts receivable at the end of the period The proportion of the total is 65.81%. As of the end of the current year, LeTV's 2017 accounts receivable receivable amounted to RMB 18,116,200, of which related party receivables receivable was only RMB 679,000.
LeTV itself has also had to choose between debt-to-equity swaps. The unlisted system of LeTV signed a zero-valued equity transfer at a valuation of RMB 1.4 billion and became a wholly-owned subsidiary of Xin Lezhi Zhijia, a website operated by LeEco E-commerce Co., Ltd. (Lesi Mall) and related resources, intellectual property and other assets. At the price of 92.9 million yuan, the new music was transferred to Xinzhi as a solvant.
LeTV “ Music Fan Festival ” Marketing continues
In fact, in terms of solving the debt problem, LeTV also proposed the possibility of improving its main business operations.
In the reply letter submitted to the Shenzhen Stock Exchange, LeTV said: "The company's current overall financial arrangements are in great difficulty and the cash flow is extremely tight. If there is no new capital support, the company's operations will be difficult to sustain. ”
The new Lezhi Sensei has also become the operating platform for LeTV’s rejuvenation of operations and debt processing, and is the lifeblood of LeTV. Because, apart from LeTV, LeTV's investment and "ecology" tests do not see a bright future.
The reply letter shows that since the second half of 2017, LeTV has stopped production. The actual R&D results of the unfinished projects such as Vehicular Connect and VR have no practical value for the company's future business development. The research and development was suspended in the second half of 2017. The research and development results were disregarded and it was considered that they did not meet the conditions for confirmation of assets and would be transferred to current expenses.
In addition, LeTV.com’s equity investment in Cool Group’s total value of 988 million yuan was more than half due to the continued decline of Cool Group’s share price. At present, the long-term equity investment of LeTV.com is still in the calculation of the long-term equity investment through the fund. However, “Daily Economic News” reported that many key targets of its investment are not optimistic. Letv regard VR as one of its main subjects. It even became the defaulter.
The LeTV business lost a lot in 2017, but in any case, it seems that it has no room for further failure.
TV business prospects geometry? According to a report published by Hong Zhe Research, flat-panel TVs have gradually recovered from the second half of 2017 in January-February 2018. In the beginning of the year, there has been a clear upward trend in price declines. The average price has fallen slightly by 3% from the same period of last year. The sales volume increased substantially by nearly 60%. Hong Zhe studies believe that the television industry gradually entered a period of cyclical recovery.
Recently, the news of copyright cooperation between Xin Le Zhizhijia and Tencent has brought a bit of brilliance to the market. In the LeTV Mall, 4·14“LeD Fan Festival” is updating the product notice. The market's “Internet +” concept for LeTV’s hardware, software, and software is mixed: On the one hand, some organizations believe that TV has entered the high-end market and hardware is the king; on the other hand, the attractiveness of Internet resource copyright is Objective existence. Regardless of whether it is right or wrong, Letv Look at this year.
The reporter tried to call LeTV.com to do a telephone interview, but as of press time, the phone could not be connected.