The Shenzhen Stock Exchange issued a suspension of listing announcement. In the same day performance briefing, investors 136 asked LeTV. The company denied that it was hollowed out.
After 8 trading days of LeTV’s suspension, on May 10, the Shenzhen Stock Exchange issued a suspension announcement.
That night, LeTV.com announced that the company’s suspension of listing began on May 13. On the same day, LeTV held a 2018 performance briefing. Compared with the temporary shareholder meeting, which was only 5 minutes ago, the two-hour online performance briefing session, the chairman Liu Shuqing, the general manager Zhang Wei and the secretary of the board of directors Bai Bing responded to a total of 136 questions from investors, involving LeTV. Whether the network will be withdrawn from the market, Jia Yueting pays back the money and the suspicion of Sunshine listed companies.
Regarding the issue of stock trading after the suspension of listing, Bai Bing said that if the company is decided to suspend listing by the exchange, the follow-up LeTV shares will be listed on the national SME share transfer system.
5 asked LeTV
Q: Will LeTV be delisted? Is there a possibility of restructuring?
A: If the company is suspended by the exchange and the company has the relevant circumstances as stipulated in 13.4.1 of the GEM Listing Rules, the company’s stock is at risk of being terminated. At present, the company does not have a clear asset or debt restructuring plan. If a related plan is formed, the company will promptly disclose it in accordance with relevant regulations.
Q: What are the profit points of LeTV? Can the assets be turned positive in 2019?
A: At present, the management of the company focuses on business recovery, controlling costs, claiming related party claims, and repaying debts. In terms of business, LeTV’s original advertising, membership and distribution, and technical services still exist. The company also relies on some innovative businesses to supplement cash inflows to alleviate the pressure on capital; the repayment of major shareholders and their related parties directly affects the company 2019. Annual asset and liability results.
Q: Is Jia Yueting still paying back?
A: The company has been negotiating with the major shareholders and its related parties to deal with the debt solution, and actively advocated the realization of the creditor’s rights of the listed company, but the debt processing team finally did not come up with a complete treatment plan that could be implemented in substance, and did not give a joint solution with the listed company. The debt problem plan, the listed company did not directly receive any cash due to the debt solution.
Q: Is it true that the outside world said that Sunac has the suspicion of short selling listed companies?
A: Sunac is the second largest shareholder of LeTV. Its transactions between investors and listed companies have been reviewed and disclosed in accordance with relevant regulations. The listed company’s 2018 consolidated scope is attributable to the net assets of the mother and the net profit of the returning mother, mainly due to the sharp shrinkage of the company’s income, the large impairment of copyright assets and related party receivables. There is no suspicion and situation of Sunshine Music.
Q: Is LeTV now an empty shell, will there be assets in the follow-up?
A: Debt: As of December 31, 2018, the total size of current liabilities and non-current liabilities within the scope of mergers of listed companies was about 12 billion yuan, of which about 3.4 billion were due from suppliers, and listed companies faced huge debts due. Unable to repay the pressure. If the listed company’s creditor’s rights to the major shareholder and its related parties are substantially resolved, the company’s debt pressure can be alleviated to a certain extent.
LeTV slid to the edge of the delisting?
Stop trading for 8 days, the Shenzhen Stock Exchange issued a suspension notice
On May 10, the Shenzhen Stock Exchange issued an announcement stating that LeTV had suspended the listing due to the provisions of Article 13.1.1 of the GEM Listing Rules (Revised in November 2018), and was based on the review of the listing committee of the Shenzhen Stock Exchange. Opinions, decided to suspend the listing of LeTV.com since May 13, 2019.
Subsequently, LeTV announced the suspension of listing on the evening of the same day, saying that the company has taken measures and focused on solving problems in the future, including major shareholders and their related parties, receivables, major business recovery, control costs, expenses, and continuous improvement of internal control management. . LeTV.com said that it will disclose the measures taken to resume the listing and the progress of the work within the first five trading days of each month, and disclose that the stock may have a risk warning announcement for termination of listing.
In fact, the suspension of listing of LeTV has long been a foregone conclusion. In the early morning of April 26, LeTV.com released its 2018 annual report. The annual report shows that LeTV’s net assets attributable to the parent company last year were -300.26 million yuan. According to the GEM Stock Listing Rules, LeTV has touched the condition that “the latest annual financial accounting report shows that the audited net assets at the end of the year is negative”, the stocks will be closed from April 26, and the Shenzhen Stock Exchange will be The decision to suspend the listing of the company’s shares will be made within 15 trading days after the suspension.
Three days after the release of the annual report, LeTV received the notice of investigation by the CSRC. The company and Jia Yueting were suspected of committing information disclosure violations. The CSRC decided to investigate the company and Jia Yueting.
Why is the new valuation of Le Rong from 9 billion to 2.3 billion?
Zhang Wei said that third-party assessment agencies use the income approach assessment
In the process of whether LeTV will be suspended, Lerong’s new valuation has always been the focus. In order to avoid being suspended from the listing, LeTV’s management has been looking for a solution, but in the end it is only the way to let the music come to the new table. But unfortunately, Le Rong’s new valuation problem has made this plan bankrupt.
LeTV.com had calculated the new valuation problem of Lerong when it announced its performance report in February this year. If Lerong Zhixin calculated according to the valuation of 1.872 billion yuan at the auction in September last year, then LeTV was attributed to 2018 in 2018. The net profit of the shareholders of the listed company was a loss of 2.026 billion yuan, and the owner’s equity attributable to the shareholders of the listed company was -1.04 billion yuan. The company will be suspended from listing.
According to the calculation of Le Rong’s new value of 5.766 billion yuan, LeTV’s net profit attributable to shareholders of listed companies in 2018 is a loss of 608 million yuan, and the owner’s equity attributable to shareholders of listed companies is 377 million yuan. Qualifications will be retained.
LeTV has changed its business from a subsidiary to a joint venture due to the loss of new control rights. According to the Accounting Standards for Business Enterprises, LeTV has lost control of 36.4% of its shares. Re-measurement based on the fair value of the new equity of Lerong, and subsequent conversion to equity method.
In the 2018 Annual Report, LeTV.com disclosed that its 36.4% equity interest in Lerongzhixin was approximately 841 million yuan. Based on this calculation, the final evaluation value of Lerong Zhixin was 2.31 billion yuan.
However, some investors believe that the new valuation of Le Rong should not be accounted for under the equity method. LeTV.com released a semi-annual report last year. According to the “valuation report” issued by a third-party evaluation agency, Lecong’s new valuation was 9.66 billion yuan on December 31, 2017. In addition, in June last year, many investors, such as Tencent, Jingdong, Sunac, Suning, and TCL, decided to add 2.74 billion yuan to Le Rong, and the new evaluation value of Le Rong was 9 billion yuan, which is estimated in the annual report. The values are very different.
At the performance briefing held on May 10, a number of investors asked about the new evaluation method of Le Rong, and Zhang Wei also responded. He said that the third-party evaluation agency used the income method to evaluate the results. According to the evaluation report, the selection process of different evaluation methods was evaluated. Because of the limited access to transaction information in the domestic property rights trading market, even the similar enterprises in the product structure and main business. There are also differences in composition, and it is difficult to obtain sufficient comparisons with listed companies or transaction cases, so this assessment does not apply to market law.
What remains after Le Rong’s new appearance?
LeTV will be involved in innovative services such as short video
Although it has been suspended by the Shenzhen Stock Exchange, LeTV will still have the opportunity to resume trading in the coming year. When submitting the 2019 annual report in April next year, LeTV may choose to submit the application for resumption of listing to the Shenzhen Stock Exchange according to its own situation, subject to a number of conditions, including the audited net profit of the most recent fiscal year and the net after deducting non-recurring gains and losses. The profit is positive and the net assets at the end of the period are positive.
Due to the new listing of Lerong, LeTV’s business only has advertising business, membership and distribution business. The two companies account for 10.75% and 61.50% of the total revenue, which is the most important revenue pillar of LeTV. However, these two businesses fell 66.64% and 71.37% year-on-year respectively, and the situation is not optimistic.
According to the 2018 annual report, LeTV and its subsidiaries have realized a total operating income of 1.558 billion yuan, of which the operating business (advertising and paid business) generated a total operating income of 854 million yuan, accounting for 54.825%; copyright distribution and The TV drama distribution revenue was 271 million and less than 300 million yuan, accounting for 17.43%.
Zhang Wei said at the performance briefing that last year the company’s management actively and continuously negotiated and negotiated debt solutions with major shareholders and their related parties, and did not give up the pressure to ease their liquidity through business recovery and supplement the strength of listed companies. In addition, LeTV has also eased the financial difficulties of listed companies in the short term by negotiating with suppliers, delaying the application of loan terms, introducing loan quotas, introducing cash loans or increasing capital.
He also revealed that LeTV is trying to get involved in innovative services such as short video, mainly using content distribution, original video marketing, soft and wide promotion and other business models to conduct business and form a certain scale of income.
For business expansion issues, LeTV’s management still blames Jia Yueting for the problem. Although LeTV and Jia Yueting have reached the amount of debt, the major shareholder and its related party debt processing team have not yet come up with a complete implementation plan that can be implemented in substance, and has not given a plan to solve the debt problem with the listed company. The listed company has not The company’s cash flow has not been improved due to any cash received from the debt solution.
According to the LeTV annual report, as of December 31, 2018, the total size of current liabilities and non-current liabilities in the scope of mergers of listed companies was about 12 billion yuan, of which about 3.4 billion were due from suppliers, and LeTV faced huge expiration. The debt cannot be repaid.
The few good news is that with Le Rong’s new appearance, LeTV’s debt and loss pressures have been greatly reduced, and Lerong has recently released new products, and the boost of smart TV sales will help LeTV’s camp. The revenue and profit rebounded. According to the new cooperation agreement between LeTV and Lerong, the sales revenue of smart TV is no longer included in LeTV. However, the cooperation between the company and Lerongzhixin in the membership business is still continuing, adopting the membership sharing model.
Beijing News reporter Lu Yifu
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