Tencent's "One Line" by Fang Fang
On April 4th news, LeTV recently explained the impairment of available-for-sale financial assets in the announcement. Among them, about RMB 468 million was set aside for the company’s provision for impairment.
According to the announcement, as of December 31, 2017, LeTV.com's investment cost for Coolpad Group was 888 million yuan, holding 10.96% of its equity. Since its investment in 2016, Coolpad’s financial situation has continued to deteriorate, and its stock price has fallen. The fair value has fallen by more than 50% against the investment cost on the purchase date and lasted for more than one year. The company’s fair value of its investment cost and the current cool stocks. The difference in provision for impairment was approximately RMB 468 million.
In addition, LeTV stated that it has reached three debt repayment schemes with debtors for the debt problems of non-listed-related companies:
1. Lepa Marketing Services (Beijing) Co., Ltd. holds a 100% stake in LeTV Investment Management (Beijing) Co., Ltd., Lepa has signed a zero-valuation stake with the company's subsidiary, New LeTV Zhijia Electronic Technology (Tianjin) Co., Ltd. In the transfer agreement, Letv Finance became a wholly-owned subsidiary of the new Le Zhi zhijia. The company has hired a third-party professional appraisal agency to evaluate LeTV's equity, and will use the valuation results to determine the amount of debt to be used for debt, and temporarily use RMB 1.40 billion as the valuation result.
2. LeSports Holdings (Beijing) Co., Ltd. pledged to hold a stake in New Lezhi Zhijia, and obtained a total of RMB 1.1 billion from China National Minsheng Trust Co., Ltd. for Xin Lezhi Zhijia. The current shareholding of LeTV Holdings Pledge will enter the judicial auction. Procedures, the proceeds from the auction to repay the non-listed system affiliates owed money.
3. Xinle Zhizhi Wisdom paid RMB 92.9 million to transfer the website (Lokshi Mall) operated by LeEco (Beijing) Co., Ltd., and related resources and intellectual property, etc., with a loan.
It is understood that on March 30th, the Shenzhen Stock Exchange issued an inquiry letter to LeTV.com for Sun Hongbin’s statement that the sale of core assets is far from enough to pay back debts. Subsequently, LeTV replied.
According to the previous inquiry letter, LeTV.com stated that it is expected that there will be a certain difference between the total amount of impairment provision for the company in 2017 and the total amount of bad debt provision and long-term assets impairment provision for receivables disclosed by the company previously disclosed by the company. The company did not trigger negative net assets as of December 31, 2017. If the company continues to suffer large losses in 2018, the company has the risk of negative net assets.