The TV media of 28,000 Sinopec gas stations across the country will appear as LeTV (300104).
On April 19th, a reporter from www.thepaper.cn learned from LeTV. LeTV and marketing platform company Huayi Technology reached a strategic cooperation on April 17th. LeTV will be integrated in the Internet and video playback hardware and software. The advantages of development and system integration, big data applications, and film and television production provide Huayi Science and Technology with the construction of 28,000 gas station convenience store in-store television media platforms for Sinopec, as well as Internet and mobile client services for car owners.
Huayi Science and Technology official website shows that this company is the exclusive operator of Sinopec Express Satellite Digital Media, covering 28,000 Sinopec Express Czech Republic satellite digital networks. The main businesses include digital large-screen TV commercials for gas stations and new media marketing, covering 28,000 Sinopec gas stations nationwide and 5,600 large screens across the country.
Business information shows that Huayi Technology (Beijing) Science and Technology Development Co., Ltd., the main operating entity of Huayi Technologies, was established in November 2017 with a registered capital of RMB 50 million and its legal representative is Yan Peng. According to its official website, Huayi Technology has established a strategic cooperative relationship with Sinopec and Hualu Group.
The Huayi Technology and LeTV network reached a cooperation, LeTV, said the two sides will also jointly develop film and television production in the field of investment and financing, advertising implant development, post-production film and television production, publicity and distribution cooperation.
Liu Shuqing, chairman and CEO of LeTV, appeared on the signing ceremony on April 17th and stated that: “Huayi Technology has many open resources. The resources of LeTV are also open. We hope to use today’s cooperation as a starting point. Constantly deepen understanding and find more opportunities for cooperation. Hua Yi Technology CEO Yu Yazheng said: "We do less on the Internet, but have a lot of user data, how to tap the data, how to improve the conversion rate, I hope in the future with these new LeTV to carry out more in-depth cooperation. ”
Liu Shuqing is LeTV's second-largest shareholder, Sunac, who is stationed at LeTV. After Sun Hongbin resigned as chairman of LeTV, Liu Shuqing succeeded him.
This is another sign that LeTV management team is trying to restore the company's business on track after LeTV announced that strategic investors such as Tencent, JD.com, Suning, TCL and Hony Capital have reached an investment interest in the new LeTV Sensei.
Since the end of 2016, the LeTV system has been hit hard by the capital chain crisis. LeTV has been hit hard, business has been stalled, TV sales have fallen sharply, and the decline in video website traffic has led to the loss of advertisers. This time, cooperation with the outside world is particularly difficult for LeTV, which has tight capital chain, continuous negative publicity, and the former chairman’s statement that he will go bankrupt and delist.
However, it must be pointed out that the current LeTV network is still not completely out of the crisis.
According to LeTV's 2017 earnings report, LeTV's net profit in 2017 was a huge loss of RMB 11.6 billion, including approximately RMB 4.4 billion in bad debt provision for related party receivables and RMB 3.5 billion in impairment provision for certain long-term assets. In an announcement on April 3, LeTV said that as of December 31, 2017, the company did not trigger a negative net asset. If the company continues to suffer large losses in 2018, the company has the risk of negative net assets.
In addition, there are still heavy debts in LeTV. As of the end of 2017, LeTV's operating liabilities amounted to RMB 7.1 billion. It is currently expected that some of the liabilities will be overdue and the current repayment will be difficult. LeTV.com stated that the company's current overall financial arrangements have great difficulties and the cash flow is extremely tight. In 2018, the debt due to the financing of loans is about RMB 5.619 billion. The company has a relatively large debt repayment risk.
According to an announcement by LeTV on April 18th, LeTV's equity in 15 companies, including Levision Cloud Network Technology, LeTV Cloud Computing, LeTV Electronic Commerce, and Chongqing LeTV Microfinance, is in a state of judicial freeze and 12 bank accounts. It cannot be used normally due to freezing.
In addition, although news of New LeTV’s Zhijia’s RMB 3 billion financing was finalized, it triggered the daily limit of LeTV on April 19th. However, in the eyes of the outside world, with the dilution of LeTV's equity interest in the new LeTV zhijia and its shareholdings being pledged to Sunac, LeTV may face the actual loss of control of the new LeTV Sense Home, which is its best quality asset.