Regarding Jia Yueting’s affiliated company’s acquisition of Nansha in Guangzhou, the Shenzhen Stock Exchange sent an inquiry letter to LeTV (300104).
On April 9, the Management Department of the Shenzhen Stock Exchange's Growth Enterprise Company issued an inquiry letter on LeTV Information Technology (Beijing) Co., Ltd. The inquiry letter requested LeTV.com to verify the relationship between Jia Yueting and its affiliates and Rui Chi Smart Car (Guangzhou) Co., Ltd. (hereinafter referred to as Rui Chi Automobile), including but not limited to equity, agreement control or other relationships, and Rui Chi Automotive. The relationship between shareholders, directors, supervisors, senior management and their affiliates.
The day before, Rui Chi Motors photographed a manufacturing site in Guangzhou for RMB 364 million. Judging from the equity relationship, Rui Chi Motors is the affiliate of Jia Lianting’s control of Faraday Futures. Jia Yueting is the largest shareholder in LeTV's nominal name. At present, his shareholdings have been mortgaged or seized almost all of them. Moreover, LeTV's non-listing system controlled by Jia Yueting has a large amount of arrears for LeTV.
In this context, the outside world will inevitably doubt that if Jia Yueting has money to build a car, should it give priority to return the listed company's arrears?
As of the close of morning on April 9, LeTV rose 3.33% to close at 4.65 yuan/share.
The following is an inquiry letter to LeTV Information Technology (Beijing) Co., Ltd.
GEM Inquiry Letter  No. 151
LeTV Information Technology (Beijing) Co., Ltd. Board of Directors:
Recently, some media reported that Ruichi Smart Auto (Guangzhou) Co., Ltd. (hereinafter referred to as “Smart Automotive”) photographed a manufacturing site in Guangzhou for RMB 364 million, and stated that Rui Chi Motors is the actual controller of your company. Jia Yueting controls Faraday Future's affiliates. Business registration data shows that Ruichi Motors is registered in Nansha District, Guangzhou City, with a registered capital of US$300 million and shareholders are SMART MOBILITY (HONG KONG) HOLDINGS LIMITED. The Ministry of Foreign Affairs expressed concern about this and requested your company to combine relevant media reports and, on the basis of inquiring Jia Yueting, verify and explain the following issues:
1. Please verify the relationship between Jia Yueting and its affiliates and Ruichi Motors, including but not limited to equity, agreement control, or other relationships, relations with Ruichi Motor's shareholders, directors, supervisors, senior executives, and their affiliates.
2. Please verify the funding sources of Jia Yueting and its affiliates for Rui Chi Motors and the source of funds for Rui Chi Auto's land auction payment, and explain whether the above funds are related to the receivables of related parties of your company.
3. Please combine Jia Yueting and its affiliates with your company's arrears, your company's verification conclusions on the above matters, and explain the concrete measures and follow-up plans your company has taken for Jia Yueting and its related parties to recover debts.
4. Other things that your company thinks need to explain. Ask your company to give a written explanation on the above issues and submit the explanatory materials to our department by April 11.
Notice is hereby given.
GEM Board Management April 9, 2018