Wenjuan Wang Juanjuan
Once the market value of one hundred billion yuan, now full of holes, when Jia Yueting wrote the story was falsified, the new owner Sun Hongbin is hard to do, LeTV (300104.SZ) stock price crisis is becoming more and more serious.
On the evening of Friday (May 25th), the Shenzhen Stock Exchange sent a letter to LeTV. Five issues were raised in connection with the fact that there existed related transactions in LeTV.net that failed to perform the review procedures and Jia Yueting violated the industry competition commitments. On May 28th, LeTV.com's stock price approached the daily limit and opened up. Afterwards, although it rebounded, it ended at a closing price of RMB 3.78/share, a decrease of 6.44%, the lowest since the resumption of trading. Based on the latest closing price, since the resumption of trading on January 24, 2018, the accumulated value of LeTV's market value has evacuated by nearly RMB 46.1 billion, which is far away from the market value of RMB 100 billion.
According to the information on the official website of the Shenzhen Stock Exchange, the aforementioned inquiry letter is the fifth inquiry from the exchange that LeTV received this year. However, the Shenzhen Stock Exchange has only announced two reply letters at present, and three of them have not announced the contents of the reply. The most important annual report is 33. There has been no reply since May 9. Among these issues, the core question that the Exchange is concerned with is that Jia Yueting does not pay back the money. “No cash flow, no profit,” LeTV, will face the suspension of listing in the face of current business and financial crisis.
New low stock price
Since November 2016, LeTV's financial risks have been exposed and the crisis has gradually deepened. LeTV.com's stock has experienced a long suspension, and ultimately it has not escaped the constant curse. After falling below RMB 4, LeTV.com's stock price has Back to the low of 5 years ago.
This time, the killings originated on May 24th. Sino-German Securities issued a 2017 follow-up report to LeTV. In this report, Sino-German Securities believes that there are related transactions in LeTV.com that have not fulfilled the deliberation procedures, Jia Yueting violated the industry competition commitments, etc. situation.
Then on May 25th, the Shenzhen Stock Exchange issued an inquiry letter, which raised five major issues centered on related party transactions and competition in the industry, and asked LeTV to explain the details of the related transactions that were not disclosed and performed in a timely manner, including related parties, the time of the transaction, and the content of the transaction. , the transaction amount, explain the reasons for not performing the review procedures and disclosure obligations, and rectification measures.
The Exchange also requested LeTV.com to explain whether there is competition with Jia Yueting and its affiliates, the issue of joint office and staff sharing, whether there is such a situation as wages paid by controlling shareholders such as wages, rent, etc., and explain the circumstances. The reasons, specific circumstances, as of now.
In addition, the Shenzhen Stock Exchange also requested Jia Yueting, a controlling shareholder of LeTV.com, to verify whether there is a violation of the “Promise to Avoid Competition in the Same Industry”. LeTV will need to provide written explanations on relevant issues and return to the Shenzhen Stock Exchange before June 1.
Although Jia Yueting went overseas, Sunac also tried to promote cutting between LeTV and Jia Yueting and LeTV's non-listed system, creating a new LeTV. However, Jia Yueting's every move still affects the nerves of LeTV. LeTV's stock price is also falling. Jia Yueting’s personal debt crisis is deeper and he cannot escape the negative cycle.
In terms of equity pledges, the current share price of LeTV.com has already fallen below the previously predicted Jiayue Ting’s equity pledge and explosives line. However, due to the judicial freeze, the pledgee cannot open positions, but the existing brokers have successively pursued through lawsuits. debt.
Western Securities disclosed in its annual report for 2017 that in April 2016, Jia Yueting successively pledged 21.5 million shares of LeTV.com shares to the company, and absorbed RMB 500 million in principal. The agreed repurchase transaction date was July 24, 2017. However, in the end, Jia Yueting did not pay interest according to the agreement, and failed to fulfill the contractual obligation for early repurchase, which constituted a breach of contract. Western Securities made provision for the impairment of assets of 439 million yuan and filed a lawsuit with the court.
Similar situations also occurred in Guotai Junan, Ping An Securities, and Huafu Securities. According to the statistics of the reporters, Jia Yueting’s debt alone exceeds RMB 1.6 billion.
According to data from Zhongdeng Corporation, LeTV has a total of 3.89 billion shares and a total of 659 equity pledges, totaling 1.647 billion shares and a pledge ratio of 41.30%. Among them, Jia Yueting holds 1.024 billion shares of LeTV. Among them, 1.20 billion shares are pledged, and the pledge ratio reaches 99.53%. After the eruption of the LeTV fund crisis, the shares held by Jia Yueting have all been frozen by judicial organs such as the Beijing Third Intermediate People’s Court.
Will LeTV look for suspension of listing?
Since the crisis broke out in a year and a half, LeTV's shareholder rights and interests have also shrunk dramatically with LeTV's share price.
From the net assets of RMB 10.225 billion at the peak of 2016 to RMB 304 billion in the first quarter of 2018, there has been a fundamental collapse in the net assets of LeTV. If the main LeTV network cannot be reversed, the losses will continue. Once the net assets are broken, A-share trading will be suspended.
From a quarterly report, LeTV's operating situation is not optimistic. According to the quarterly report, LeTV.com achieved an operating income of 437 million yuan, down 89.41% year-on-year, and net profit of -307 million yuan, down 346.2% year-on-year.
Under the consolidated statement, the total assets of LeTV in the current period are RMB 1.7452 billion, total liabilities are RMB 18.654 billion, and the net assets are up to RMB 12.02 billion. However, due to the owner's equity attributable to the parent company of RMB 304 million, the net assets have not been triggered to be negative, resulting in the suspension of listing. Whether or not it will hit a suspension of listing in 2018, or whether the business will turn for the better, will also become the issue of supervision.
In response, the Shenzhen Stock Exchange sent a 15-page inquiry letter to LeTV on May 9th, which included 33 major issues, requesting LeTV.com to focus on continuing operations, accounting issues, and connected transactions. Provide detailed answers to external guarantees.
The Shenzhen Stock Exchange first asked LeTV to provide explanations on the various liabilities of the company as of 2017, repayment risks and countermeasures. At the same time, combined with the company's current production and operating conditions and financial status, it shows whether the net asset may be triggered in the end may lead to a suspension of listing.
In the May 14 performance briefing, LeTV Chief Executive Zhao Kai had stated that if the listed company continues to lose money in 2018, there will be a possibility that the home equity will be negative, and the Shenzhen Stock Exchange may decide to suspend its listing.
In the 2017 annual report and the first quarterly report of 2018, LeTV.com all stated that the company’s ability to continue its operations has been significantly reduced, and its main advertising and membership revenues have dropped significantly, while asset impairment losses and bad debt provisioning have increased significantly.
In this regard, the Shenzhen Stock Exchange requires LeTV to specify the number of advertisements, the causes of decline, the cancellation of orders, and the placement of advertisements, copyright services, and payment services; copyright distribution, customer names, cooperation contents; and the number of users, average payment rates, and recent Three years of website traffic and other details of the data were disclosed.