LeTV did not usher in a miracle. Not surprisingly, April 25 will be the last trading day for this former GEM leader.
In the early morning of April 26, LeTV's 2018 annual report was disclosed. LeTV said that the audit report issued by Lixin Certified Public Accountants (Special General Partnership) confirmed that the company's audited net assets attributable to shareholders of listed companies in 2018 were negative.
Trading in the Company's shares will be suspended from the opening of the market on April 26, while the Shenzhen Stock Exchange will make a decision on whether to suspend the listing of the Company's shares within 15 trading days after the suspension. If the 2019 annual audit report and annual report do not meet the conditions for the resumption of listing of GEM stocks stipulated by the Shenzhen Stock Exchange, they will be forcibly delisted.
Bai Bing, secretary of the board of directors of LeTV, said at the first extraordinary shareholders' meeting in 2019 that there is no clear timetable for the delisting of LeTV, and that delisting is inevitable or not necessary, and there is no progress.
According to the Implementation Measures for the Suspension and Termination of Listing of Loss-making Listed Companies, after the suspension of listing of a company's shares, if it meets the following conditions, it may submit an application for resumption of listing to the stock exchange within five working days after the disclosure of the first semi-annual report: first, the first semi-annual report after the suspension of listing is disclosed within the statutory period; second, the semi-annual financial report shows that the company has made a profit, and the audited net assets per share of the listed company in the most recent fiscal year are higher than the par value of the shares.
"LeTV's high-quality assets have been lost, the overall operating situation is not good, the debt is entangled, and the possibility of profitability is minimal." Therefore, even if an application for resumption of listing is submitted after the suspension of listing, it is likely to fail. Analysts at Industrial Securities told China Investment Network.
After all, "Losing Lerong to the new LeTV network is almost an empty shell." ”
For a long time, Le Rong Zhixin, the operating entity of LeTV TV, has been the largest asset in its revenue volume.
On April 8, 2019, leTV released an announcement showing that Le Rong Zhixin was no longer included in the scope of merger. "The new book assets of the original holding subsidiary, Lerongzhi, are no longer included in the scope of the merger." In the main asset categories, LeTV's 2018 annual report makes a significant change in this regard. Other subcategories have no relevant descriptions.
In addition, LeTV's 2018 annual report shows that the overall scale of revenue and cost within the consolidated scope of listed companies in the first quarter of 2019 decreased. After Lerong zhixin's new statement, according to the equity method, the net profit attributable to the mother in the first quarter of 2019 affecting the consolidated scope of the listed company was about -48 million yuan.
However, in the main asset categories, LeTV did not give a specific proportion of changes in monetary funds, other current assets, and development expenditure.
However, the 2018 interim report pointed out that the balance of LeTV's monetary funds decreased by 31.14% compared with the end of the previous year, mainly due to the purchase of short-term wealth management by subsidiary LeTV Buyout Fund Company to include other current assets; other current assets increased by 46.99% compared with the end of the previous year, mainly due to the purchase of short-term wealth management by subsidiary LeTV Buyout Fund Company to include other current assets. At the same time, the development expenditure increased by 22.16% over the end of the previous year, mainly due to the capitalization of the new R&D projects of the subsidiary Lerongzhi.
On the other hand, the intangible assets of LeTV are also "life and death". This mainly includes film and television copyright, system software, and non-patented technology.
According to the 2016 annual report, under the consolidated statements, the company's intangible assets are worth 6.882 billion yuan, accounting for more than 50% of the net assets. And in the provision for the impairment of intangible assets, there is not a penny accrued.
Until Sunac took over, LeTV's 2017 annual report showed that its annual cumulative amortization reached 5.017 billion yuan, of which 3.084 billion yuan was added. The new impairment provision was as high as $3.28 billion.
At that time, Fong's certified public accountants issued an audit report saying that it had not been able to obtain sufficient and appropriate evidence to make a judgment on the timing of the occurrence of the signs of impairment, nor could it make a judgment on the reasonableness of the revenue forecast in the impairment test. "The inability to determine the value of intangible assets at the end of 2017 will affect the amount of amortization and impairment of intangible assets in 2018."
Therefore, in LeTV's 2018 interim report, significant changes in intangible assets were not mentioned. According to the 2018 annual report, LeTV said that "a large impairment loss was recorded for intangible assets during the reporting period".
As of press time, leTV's market value is only 6.742 billion yuan. It is 25 times different from its peak.
LeTV, which once had a peak market value of 170 billion yuan, is an A-share listed company with an annual profit of more than 500 million yuan, but now it has lost money for two consecutive years.
According to LeTV's 2018 annual report, from January to December 2018, the company achieved operating income of 1.558 billion yuan, down 77.83% year-on-year; and achieved net profit attributable to shareholders of listed companies of -4.096 billion yuan, compared with -13.878 billion yuan in 2017.
While the scale of revenue decreased significantly in 2018, the loss of bad debts due from related parties, the amortization cost of long-term assets such as film and television copyrights purchased by the company in the previous period were amortized year by year, and the reduction in the valuation of long-term assets caused by the decline in income level mainly led to the company's operating losses in 2018.
In addition, in the case that a large number of related party claims cannot be repaid, a large number of interest-bearing debts of LeTV cannot be repaid and financial expenses are continuously incurred, which further increases the impact of losses.
According to the annual report, in 2018, the total operating costs, sales expenses, management expenses, and research and development expenses amounted to 3.308 billion yuan. "The management tried its best to adjust the business model, improve operational efficiency, control costs and expenses, so that daily operating costs, CDN expenses, and labor costs have dropped significantly, but it has not reversed the company's continuing operating loss in 2018."
According to the disclosure, as of now, LeTV's receivables to major shareholders and their related parties are about 2.84 billion yuan.
But the story of "responsible for Jia Yueting" has to start a year and a half ago.
On December 25, 2017, the Beijing Securities Regulatory Bureau of the China Securities Regulatory Commission (CSRC) issued a notice saying that in order to protect the legitimate rights and interests of listed companies and investors, Jia Yueting was ordered to return to China before December 31, 2017, effectively perform the obligations of the actual controller of the company, cooperate in solving the company's problems, properly handle the company's risks, and effectively protect the legitimate rights and interests of investors.
Jia Yueting responded on December 31, 2017, "For the debt problem, I will be responsible for the end!" ”
Today, after a year and a half, Jia Yueting is still far away in the United States, LeTV's debts have not been properly resolved, and the car manufacturing business is not as smooth as imagined. But he is stubbornly "selling the land to survive".
At the end of 2018, Faraday Future had a series of arrears.
"Some suppliers and sellers have not received payments for several weeks. Faraday Future used a variety of means to delay payments, including reasons for the departure of the company's finances and the need for signatures on cheques. The Verge, a U.S. tech outlet, reported that this was the same reason faraid as Faraday's future arrears in 2017.
According to statistics, since the first announcement of mass layoffs and pay cuts in October 2018, Ff has been filed 11 new lawsuits by suppliers and contractors, and these companies have demanded that ff pay nearly $80 million in arrears, damages and related expense compensation.
Under such pressure, Jia Yueting began to auction commercial real estate and industrial land at home and abroad. "I don't think Jia Yueting is miserable at the moment, but I think he has found something he really loves." A person close to Sunac told China Investment Network in March 2019, "If he is not 100% invested, he will not bet on real estate resources." ”
It is worth noting that Jia Yueting, who is dedicated to car building, rarely mentions LeTV now. And Jia Yueting's own shareholding in LeTV is also constantly passively reducing holdings. According to the announcement, as of April 18, 2019, the shares held by Jia Yueting decreased by 40.2861 million shares compared with January 15, 2019, accounting for 1% of the company's total share capital.
Jia Yueting had previously replied to emails on the reasons for the reduction of shares, "All of which are passive reductions caused by judicial disposal." ”
Since 2018, LeTV has frequently issued the "Indicative Announcement on the Risk of Suspension of Stock Listing". Since the first similar announcement was issued on July 20, 2018, LeTV has announced "delisting soon" for 38 consecutive times.
This rout is in stark contrast to the former prosperity of the LeTV Empire.
As the starting point of Jia Yueting's LeTV empire, LeTV was born out of a streaming department of Beijing Siber Communication Technology Co., Ltd., founded by Jia Yueting.
In 2010, LeTV was successfully listed on the A-share market and was known as the "first A-share network video share".
According to the prospectus data, from 2007 to 2009, LeTV achieved revenue of 36.9163 million yuan, 73.6071 million yuan and 146 million yuan, and obtained net profits of 14.6835 million yuan, 30.2547 million yuan and 44.4782 million yuan. At that time, when video websites were generally not profitable, LeTV at least achieved profitability in its financial statements.
With the blessing of LeTV, the scale of LeTV's territory led by Jia Yueting has expanded rapidly, and in 2015, it officially formed a huge scale of seven major ecosystems.
According to Jia Yueting's vision, LeTV's seven ecosystems include: Internet and LeTV cloud, content, large screen (super TV), mobile phones, sports, automobiles, and LeTV Finance. Among them, the listing system "LeTV Network" includes the Internet and cloud, content, and large screen three sub-ecosystems; mobile phones, sports, automobiles and LeTV finance, the four major ecosystems constitute the non-listed system of LeTV.
According to the statistics of China Investment Network, from the leTV online listing to the outbreak of the debt crisis of the LeTV system, the total investment that has occurred, is happening or claimed to be about to occur in the LeTV system at that time exceeded 70 billion yuan.
However, until now, the so-called open and closed-loop complete ecosystem of LeTV Ecology has rarely been clearly interpreted. The outside world sees this "complete ecosystem" more as a development model that bundles the business of listed companies and unlisted companies through related party transactions.
But by now, "such a bondage has lost its meaning, and it is more like a cage that Jia Yueting has woven for himself." Analysts at Industrial Securities sighed at the investment network. Still, he believed in the power of rebirth.
"People are always more fearless when they are desperate." The reason is simple, "After all, he has lost nothing." (Text/Chai Jiayin Source/Touzhong Network)