LeTV.com stated that the company and Jia Xideing, CEO of Faraday Future Global Business, a related party of Rui Chi Motors, and their affiliates have accounts receivable, other receivables and other related arrears. As of December 31, 2017, the balance of the related party's arrearage of listed companies was 700, 09.5945 yuan. (The above financial data have not been audited, and the final audited value prevails)
In response to the debt of the unlisted system affiliates, the company has reached the following three debt repayment schemes with the debtor:
(1) Lepa Marketing Services (Beijing) Co., Ltd. (hereinafter referred to as “Lepa”) holds 100% equity of LeTV Investment Management (Beijing) Co., Ltd. (hereinafter referred to as “LeTV”), Lepa has been a subsidiary company of the company. The new music as Wisdom Electronic Technology (Tianjin) Co., Ltd. (hereinafter referred to as "new music as Wisdom") signed a zero-valued share transfer agreement, shareholding structure, Letv as a wholly-owned subsidiary of the new Le Wisdom. The company has hired a third-party professional assessment agency to evaluate LeTV’s equity, and will use the valuation results to determine the amount of the debt to be used for debt, temporarily accumulating 1.40 billion yuan as the valuation result.
(2) LeTV Holdings (Beijing) Co., Ltd. (hereinafter referred to as “LesVision Holdings”) pledged the equity of New Lezhi Zhijia to obtain a total of RMB 1.1 billion in loans from China National Student Trust Co., Ltd. for Xin Lezhi Zhizhi. At this stage, The shares pledged by Levision Holdings will enter the judicial auction process and the proceeds from the auction will be used to repay the non-listed system affiliates’ arrears.
(3) New Lezhi Wisdom took over RMB 92,900,000 to transfer the website (Lokshi Mall) operated by LeEco Electronic Commerce (Beijing) Co., Ltd. (hereinafter referred to as “L&E E-Commerce”) and related resources, intellectual property and other assets.
In addition, the company is actively coordinating with LeTV's non-listed system and instructs related parties to effectively resolve the listed company's associated receivables due to the historically related transactions of non-listed companies, thus alleviating the company's financial pressure.