Losing the market value of the company is not enough! After losing nearly 30 billion yuan in the past three years, the prelude to LeTV delisting began.

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This is not a huge loss for LeTV in its first year. From 2017 to 2018, its net profit to the parent company was -13.878 billion yuan and -4.096 billion yuan, with a cumulative loss of 29.255 billion yuan over three years. At the same time, LeTV's owners' equity belonging to shareholders of listed companies was also negative, at -143.329 billion. Researcher Zhuoma, "Investment Times", who is seriously insolvent, "No winter is insurmountable, and no spring will come." This phrase became people's word when the new coronary pneumonia epidemic was gradually brought under control. The best comment I'm looking forward to. Hope is always beautiful, but for LeTV Network Information Technology (Beijing) Co., Ltd. (hereinafter referred to as LeTV Network, 300104). Hope for spring is really slim. On the evening of February 27, Letv.com released its 2019 performance briefing. The company achieved total operating income of 490 million yuan, a year-on-year decrease of 69.01%. The net profit of shareholders of the listed company was -11.282 billion yuan, a year-on-year decrease of 175.46%. The net profit of the parent company was -40.096 billion yuan. Another year of huge losses. So far, LeTV has lost money for three consecutive years. From the current situation, it is almost certain that the company will exit the market. However, according to the relevant provisions of the "GEM Stock Listing Rules", LeTV may still have the opportunity to resume listing, but from the financial data disclosed in its performance announcement, the resumption of listing is also a small probability event. On the evening of February 27, Letv.com released its 2019 annual performance briefing, achieving total operating income of 490 million yuan, a year-on-year decrease of 69.01%. The net profit of shareholders of the listed company was -11.282 billion yuan, a year-on-year decrease of 175.46%. The net profit of the parent company was -40.096 billion yuan. According to the previous regulations of the Shenzhen Stock Exchange, LeTV's shares will be suspended from May 13, 2019. At present, its stock price remains at 1.69 yuan per share, with a total market value of 6.742 billion yuan. In other words, the loss in 2019 is equivalent to the market value of 1.67 companies, and it is not enough to lose the market value of only one company. Researcher "Investment Times" noticed that this was not the first year that LeEco suffered a major loss. From 2017 to 2018, its net profit to the parent company was -13.878 billion yuan and -4.096 billion yuan, with a cumulative loss of 29.255 billion yuan over three years. At the same time, LeTV's ownership equity (net assets) attributable to shareholders of listed companies was also negative, at -143.329 billion, which was seriously insolvent. For another huge loss in 2019, LeTV attributed it to three factors in its results announcement. Letv. com said that as of the end of the reporting period, 18 investors of LeTV Sports had initiated arbitration for LeTV's breach of the company's guarantee to LeTV Sports. Among them, the company lost 15 cases, and the remaining 3 cases are still pending. Therefore, the company has accumulated about 9.8 billion yuan of debt in LeTV Sports and LeTV Cloud cases. LeTV classifies the related income into non-recurring gains and losses. After deducting non-recurring gains and losses, LeTV's net profit to the parent company in 2019 is approximately -1.482 billion yuan. In addition, as LeTV's brand reputation continued to suffer, its advertising revenue, membership and distribution revenue continued to decline compared to the same period last year. On the other hand, the amortization cost of long-term assets such as film and television rights purchased in the previous period is amortized year by year, resulting in a significant decline in the company's total operating income, operating profit and profits in 2019. According to the semi-annual report for 2019, advertising, membership, and distribution are the few that can be regarded as generating revenue, with revenues of 15797 million and 163 million, respectively, accounting for 6.51% and 67.20% of operating income, respectively. Compared with the same period of the previous year, they decreased by 85.42% and 73.67%, respectively. During the reporting period, the creditor's rights of LeTV's major shareholders and their related parties could not be repaid, and the company's large amount of interest-bearing debts could not be repaid. Financial expenses continued to occur, which further increased the impact on losses. "Investment Times" researchers pointed out that it is worth noting that, unlike the slightly euphemistic statement in the 2018 results announcement, Letv.com directly stated in the latest results announcement that it failed to comply with relevant laws and regulations and the company's unauthorized agent signed The context of the contract, then the managers 67%. During the reporting period, the creditor's rights of LeTV's major shareholders and their related parties could not be repaid, and the company's large amount of interest-bearing debts could not be repaid. Financial expenses continued to occur, which further increased the impact on losses. "Investment Times" researchers pointed out that it is worth noting that, unlike the slightly euphemistic statement in the 2018 results announcement, Letv.com directly stated in the latest results announcement that it failed to comply with relevant laws and regulations and the company's unauthorized agent signed The context of the contract, then the managers 67%. During the reporting period, the creditor's rights of LeTV's major shareholders and their related parties could not be repaid, and the company's large amount of interest-bearing debts could not be repaid. Financial expenses continued to occur, which further increased the impact on losses. "Investment Times" researchers pointed out that it is worth noting that, unlike the slightly euphemistic statement in the 2018 results announcement, Letv.com directly stated in the latest results announcement that it failed to comply with relevant laws and regulations and the company's unauthorized agent signed The context of the contract, then the managers

Debt pressure is difficult to continue According to the third quarter of 2019 report, as of the end of the reporting period, LeTV bills payable and accounts payable were 3.173 billion yuan, long-term and short-term loans were 42 million yuan, other current liabilities were 3.304 billion yuan, and total liabilities were approximately 21.651 billion yuan. Among them, the balance owed by Jia Yueting and his actual controlling enterprises to the company was approximately 1.975 billion yuan (excluding Lelongzhi's new payables which are no longer included in the scope of consolidation of listed companies). Facing huge losses and liabilities, LeTV's current management is not without efforts. "Since 2019, the company's management has done its best to adjust the operating model, improve operating efficiency, and control costs, which has led to a significant decline in daily operating costs, CDN costs and labor costs, but has not reversed the company's continuing operating losses during the reporting period. "Letv. com said in its previous performance forecast that the company currently requires Jia Yueting to be responsible for the company's related liabilities. Instructed Jia Yueting and his affiliates to effectively resolve actual debts to listed companies with cash or equity and assets, to protect the shareholders' rights and interests of listed companies as much as possible, and to alleviate financial pressure on the company. However, so far, the debt processing team of Jia Yueting and his affiliates has not come up with a complete solution that can be implemented in substance. Due to the debt solution, the company did not receive any cash. On January 23, LeTV's independent directors Lu Zheng and Wang Leirang submitted resignation reports to the company, saying that they applied for resignation of the company's fourth board of directors and members of the audit committee due to "personal reasons". Lu Zheng and Wang Lei's original term of office ended on October 14, 2021, that is, one year and nine months in advance to resign. In the third quarter of 2019 report, due to the combined impact of the LeTV Sports and LeTV Cloud incidents, the two independent directors expressed serious doubts about LeTV's ability to continue operations and stated that they could not express opinions on the third quarter report. LeTV accepted the resignations of two independent directors, but after Lu Zheng and Wang Lei let go, LeTV's board has only three members, namely Chairman and General Manager Liu Yanfeng, two non-independent directors Wu Baoyu and Zhang Guanghui. On January 8, LeTV held an online apology on the Shenzhen Stock Exchange interactive platform. Executives such as Liu Yanfeng and Wu Baoyu exchanged views with investors. In response to investors' concerns about the company's current operating situation, Liu Yanfeng said that after Lerong Zhixin issued a statement, the assets, liabilities, net profit and cash flow of Lerong Zhixin's TV business were not within the scope of LeTV's mergers and acquisitions, but Advertising, membership and distribution, and technical services still exist. The company's management has been working hard to maintain the company's ability to continue operating, and employees' salaries can be maintained in the short term. Regarding the company's future restructuring or "shell selling" expectations, Liu Yanfeng clearly answered that the company currently has no plans to increase capital and implement debt restructuring. Wu Baoyu also expressed the same attitude. According to the previous announcement, as of February 3, 2020, Jia Yueting held 920 million shares of LeTV, accounting for 23.07% of the company's total share capital, and remains the company's largest shareholder. However, all the shares have been frozen by the Beijing Third Intermediate People's Court and other judicial departments and are waiting to be frozen. Among them, 857 million shares have been pledged, accounting for 21. 49%. All Jia Yueting's pledged shares have reached the liquidation quota agreed in the agreement. At present, LeTV's creditors are more concerned about how Jia Yueting will repay his debt, and Jia Yueting's solvency depends on the future of Faraday. Because of its financial assets, the highest value is the West Coast LLC, which is owned by FF's parent company Smart King and is valued at $ 860 million. At the end of 2016, LeTV's department encountered a crisis in the capital chain. In the second half of 2017, Jia Yueting resigned from various positions in the LeTV department and went to the United States to start his "car dream." During this period, he received letters from the director repeatedly asking him to return to China to perform his duties, but he has not yet returned. In the process, although many companies

After the plan is completed, Jia Yueting will no longer hold any equity in Smart King, the holding parent company of electric car manufacturer FF. According to the application documents, Jia Yueting's total personal assets were US $ 1.417 billion, of which US $ 1.412 billion was financial assets and US $ 4.773 million was real estate assets. Jia Yueting has repaid more than US $ 3 billion in debt and about US $ 3.6 billion in outstanding debt. After deducting frozen domestic assets and convertible secured debt to be disposed of, it is approximately US $ 2 billion. However, the bankruptcy reorganization plan did not pass because only 23% of creditors agreed with the proposal. Later, Jia Yueting withdrew the bankruptcy plan and postponed the deadline for voting. It is reported that on April 30 this year, the bankruptcy court will hold a hearing on Jia Yueting's disclosure statement on bankruptcy and reorganization and related bills. At that time, Jia Yueting will have to submit a third revised disclosure statement at least 42 days before the hearing. Obviously, bankruptcy proceedings cannot be completed in a short time, and Jia Yueting has difficulty repaying debts.