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Shenzhen Stock Exchange issued an annual report on LeTV. Q: Is it possible to suspend listing?

via:CnBeta     time:2018/5/10 7:01:53     readed:87

In this financial report, LeTV also disclosed seven risks currently facing the company, among which the company’s actual controller, Jia Yueting, once again mentioned the risk of losing control of LeTV.

LeTV re-losing more than 300 million yuan in the first quarter

LeTV's quarterly report shows that in the first quarter of this year, the company's total operating revenue was 437 million yuan, a sharp decline from the same period of last year, nearly 90%; the company's net profit was -307 million yuan, compared with a profit of 120 million yuan in the same period last year. %. The quarterly report disclosed that currently LeTV's largest shareholder is Jiayue Ting, which holds 1.024 billion shares and holds 25.67% of shares. All of its shares are frozen, and 1.019 billion shares are in the state of pledge at the same time. Tianjin Jia Rui Huixin Enterprise Management Co., Ltd. held by Sun Hongbin is currently the second largest shareholder of LeTV, holding 341 million shares and holding 8.56% of the shares.

In this financial report, LeTV released seven risks that the company currently faces, of which the top one is the risk that the actual controller of the company may change. It is reported that as of now, the shares of LeTV.com held by Jia Yueting have been frozen by the judicial authorities of the Third Intermediate People’s Court of Beijing, and most of them have been pledged to financial institutions. The equity pledge has the risk of being disposed of by the relevant organization due to the inability to provide additional guarantees in time, which may result in changes in the actual controller of the company.

At the same time, LeTV has the risk that the company’s shareholders and related parties, LeTV Holdings, will not be able to repay the due debts, which will result in the company’s ownership of the listed system company being disposed of in accordance with the law, and thus changing the ownership structure of the underlying company. It is reported that LeTV has already sent emails and reminded Jia Yueting before. In accordance with the relevant regulations, if the shares held involve judicial enforcement and implementation of the share pledge agreement triggers a reduction of holdings, it is necessary to inform the listed company of a reduction plan in advance in accordance with relevant regulations, and the listed company must Recorded and announced.

The balance of related arrears amounted to 7.317 billion yuan

The financial report also disclosed that since 2016, LeTV has formed a large number of related receivables and prepayments through capital transactions such as the sale of goods to suppliers controlled by Jia Yueting, business services such as service provision, and payment of disbursements. As of March 31 this year, the balance of related arrears of related parties to listed companies reached 7.317 billion yuan. Although the company carried out the collection work, there was still a risk of recovery. Moreover, as of now, the receivables of some related parties of the company have not yet been recovered, which has led to the emergence of a large amount of arrears, payment of unpaid debts, and a large number of defaults and lawsuits on the upstream suppliers, which has caused the company’s cash flow to be extremely tight and endangered the company’s credit system. This resulted in poor financing channels and adversely affected the company's operations. "If there is no new capital to enter, the company will face operational difficulties." LeTV said that based on the above, Sun Hongbin's Tianjin Jia Rui has injected funds into the listed company through borrowing, which has eased the company and its subsidiaries to some extent. The pressure on capital demand.

It is also understood that the main cash sources for LeTV now are corporate members, TV sales, advertising and other business income, and bank borrowings, external borrowing, and other financing channels. Due to LeTV’s existing debt maturity, the company’s cash flow risks further tension. The changes in the current market environment and the impact of LeTV's unlisted business led to a corresponding adjustment in the company's business scale, which resulted in a decline in business income levels. At the same time, the decline in business scale has tightened the bank's credit line, and the company has the risk of further tightening cash flow due to the maturity of the debt. If the scale of the company's business can not be returned to a higher level, the credit line can not be restored, the company will be due to further cash flow tension led to the company's debt pressure.

Shenzhen Stock Exchange made 33 consecutive reports on the annual report of LeTV.com

Yesterday, LeTV.com also received an annual report inquiry letter from the Shenzhen Stock Exchange. It mainly inquired about certain operating conditions of LeTV.com's 2017 annual report and requested the company to provide 33 additional questions for the annual report. It involved LeTV.com's sensitivity to the suspension of listing. problem. The Shenzhen Stock Exchange asked LeTV to reply before May 18.

LeTV's operating conditions have deteriorated significantly since the second quarter of last year, including the company's operating income, net profit, and so on. The Shenzhen Stock Exchange requires LeTV to record each type of liabilities such as corporate financing, borrowings, and operating transactions item by item through 2017, including the liability entity, the amount of liabilities, the maturity date, interest rates, interest burden, and financing purposes. At the same time, the Shenzhen Stock Exchange requires a combination of the company’s current production and operation status and financial status to indicate whether LeTV may trigger a suspension of the listing due to a negative net asset value. In addition, LeTV's advertising business revenue dropped sharply last year compared with 2016. The inquiry letter not only required LeTV.com to combine the number of advertisers in different business models in the last three years and the changing trend of advertising revenue and market competition status, which explained the reasons for the sharp decline in advertising business revenue. At the same time, it also requested that it describe in detail the accounting treatment under special circumstances such as the advertisement replacement business, the advertisement rebate business, the withdrawal of the advertisement after placing the advertisement, and the settlement of the effect according to the advertisement. Text/Reporter Zhang Qin

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