Original title: LETV pulled down the performance mask, suffered a huge loss of nearly 13.9 billion, and became the loss king of a shares
Sihai science and technology news on April 27, on the last working day before the deadline of 2017 annual report disclosure, LETV pulled down the performance mask: a loss of nearly 13.9 billion yuan.
The loss is more than the original forecast. LETV originally forecast a loss of 11.6 billion yuan.
The green digital matrix has made the market realize that the company has suffered a lot of damage. Even if sun Hongbin, a strong man, takes over the offer, he still can't make a comeback.
The loss was 13.9 billion yuan
In 2017, LETV's financial data fell in an all-round and large area.
Among them, the operating income was 7.025 billion yuan, a year-on-year decrease of 68%; the net profit loss was 13.878 billion yuan, a decrease of 2601% compared with the profit of 555 million yuan in 2016; the operating cash flow also lost 2.64 billion yuan, the total assets decreased by 14.3 billion yuan, and the net assets belonging to shareholders of listed companies decreased by 93.52%.
From the perspective of time axis, in 2017, except for the first quarter of profit, the other three quarters fell into loss, and the loss situation continued to expand. In the third quarter when Jia Yueting, the founder of LETV, went to the United States to stay and did not return, the revenue of LETV was the lowest in the whole year.
As for the performance of this "all green" project, LETV said that during the reporting period, due to the difficulties in recovering related accounts receivable, the failure of major shareholders to fulfill their loan commitments and the maturity of existing debts, the company's cash flow in 2017 was seriously limited, there was a large amount of debt owed to suppliers, and the company's business operation was difficult, resulting in a sharp decline in performance.
Specifically, there are the following aspects:
During the reporting period, the company's advertising revenue decreased by 87.39% year-on-year, terminal revenue decreased by 75.09% year-on-year, and the revenue of member and distribution business decreased by 50.66% year-on-year. At the same time, the company's daily operating costs, CDN expenses increased by 57.97% compared with last year, and the apportioned expenses increased by 52.62% compared with last year.
In addition, after the company and its subsidiaries conducted a comprehensive inventory and asset impairment test on the assets with possible signs of impairment from January to December 2017, a total of 10.882 billion yuan of assets impairment loss was withdrawn in 2017, including 3.28 billion yuan of intangible assets impairment loss and 6.094 billion yuan of bad debt loss.
Moreover, the company's reputation and credibility are still trapped in a serious negative public opinion vortex due to the continuous impact of the related party's tight funds and liquidity turmoil. In the first quarter of 2018, the company's advertising revenue, terminal revenue and member revenue all declined significantly compared with the same period of last year.
LETV said in the announcement that in view of the fact that the company's 2017 annual consolidated statements belong to the shareholders of the listed company, the net profit is negative, at the same time, the company is currently facing operational difficulties and various businesses are in the recovery period, cash flow is tight, and the risk of collection of accounts receivable from related parties and other substantive problems, in order to ensure the normal production and operation and future development of the company, According to the articles of association and other relevant provisions, the board of directors agreed that the company plans not to distribute cash dividends, give bonus shares or convert capital accumulation fund into share capital in 2017.
Change of actual controller
The poor performance does not seem to affect morale. LETV stressed in the report that it has made full accounting estimates of the potential risks in the assets, and there is no large amount of asset impairment risk in the future. In the announcement, LETV also revealed that it plans to improve the company's sustainable operation ability through strategic cooperation, increased financing and business expansion.
Just a few days ago, sun Hongbin just brought in Tencent, Jingdong, Suning and other upstream and downstream enterprises to invest 3 billion yuan in LETV. The phased financing has played a certain role in easing the current cash flow pressure of LETV. At the same time, LETV also hopes to cooperate with Tencent and Jingdong in increasing video content services, expanding film and television copyright resources, as well as in membership, advertising, shopping and other aspects.
In addition, LETV has set up a subsidiary, smart financial innovation, which will focus on in-depth exploration of smart home in the future, including but not limited to cooperation in real estate, hotel and other industries, innovative exploration of market demand for smart home, and exploration of its own potential around its own advantages such as terminal and content.
With the release of LETV's 2017 annual report, the first quarter of 2018 was also announced.
In the first quarter of 2018, LETV's operating revenue hit a new low, about 1 / 10 of the same period last year, and the loss of net profit eased to 307 million yuan.
Compared with the change of figures, this announcement is more concerned about the possible change of the actual controller of the company.
Data show that, up to now, Jia Yueting holds 1024.2666 million shares of the company, accounting for 25.67% of the total share capital, of which 1019.5398 million shares have been pledged to financial institutions, and 1024.2666 million shares have been frozen by the Beijing third intermediate people's court and other judicial organs. There is a risk that its equity pledge will be disposed by relevant institutions due to the failure to add guarantee in time, which may lead to the change of the company's actual controller.
At the same time, there is a risk that the shareholders and related parties of LETV holdings can not repay due debts, which leads to the legal disposal of the equity of the listed company and the change of the equity structure of the target company.
In addition, the company also has some related party receivables recovery risk, Jia Yueting and Jia Yuefang's failure to fulfill their loan commitments leads to the company's cash flow tension risk, the company's existing debt maturity leads to the company's cash flow further tension risk, the company's foreign investment risk, the subsidiary's equity pledge and external guarantee risk, and the risk of losing the new control right of Lerong.
As for shareholders, Niu sanzhang Jianping, who had previously participated in the fixed increase of LETV, chose to sell off after the lifting of the ban in February, reducing 0.63% of the company's shares, and Cao Yong also reduced 1% of LETV's shares.
Loss King
It is worth noting that Lixin Accounting firm (special general partnership) (hereinafter referred to as "Lixin") which was employed as LETV's audit institution in January this year said that due to the importance of the matters described in the part of "forming the basis for unable to express opinions", it was unable to obtain sufficient and appropriate audit evidence, obtain effective evidence through the implementation of letter confirmation procedure, and evaluate the above receivables The implementation of recycling alternative audit procedures. Therefore, it can not determine whether it is necessary to adjust the balance of related receivables and other receivables and bad debt provision items.
This is not the first time LETV has failed to obtain an unqualified audit report from an audit institution. In the 2016 annual report released a year ago, ShineWing, the then financial report auditing organization, issued an "unqualified opinion with emphasis" on related party transactions, and reminded investors to pay attention to relevant notes.
Data source Caihui big data terminal
The loss of nearly 13.9 billion yuan means that LETV has surpassed * ST oil service, ranking first in the list of A-share losses in 2017, which is more than the total loss of 6-10.