Original title: what happened to Jia Yueting's stock explosion? Why
Today, the news of Jia Yueting's stock explosion has aroused everyone's attention. The stock pledge has already encumbered at least three listed securities companies. What's the matter? What's the specific reason? Let's have a look with Xiaobian!
What happened to Jia Yueting's stock explosion
Western securities issued an announcement this evening to test the impairment of individual financial assets. The principal of the capital raised by LETV, the pledge stock of credit trading business, as a single financial asset, is 439 million yuan, 30% more than the company's audited net profit attributable to the parent in the latest accounting year.
As of December 31, 2017, Western securities has raised a total capital principal of 1018.5 million yuan for the pledged stock letv.com. Among them: 473.5 million yuan of principal was released to Jia Yueting, 296 million yuan to Jia Yuemin, 24 million yuan to Liu Hong and 9 million yuan to Yang Lijie.
According to the announcement, Jia Yueting and Jia Yuemin have failed to perform their respective contractual obligations due to the expiration of the relevant agreements on stock pledged repo transactions, which has constituted a breach of contract. In order to protect its own legitimate rights and interests, Western securities filed a lawsuit to Shaanxi high court, which has officially accepted it.
According to 21st century economic report, Jia Yueting pledged 21.5 million shares of LETV to Western securities in April 2016, with a transaction capital of 500 million yuan. At present, the latest stock price of LETV is 5.44 yuan / share. Jia Yueting's share pledge of LETV has been basically in the risk of closing positions.
As of the latest, Jia Yueting still holds 1.02bn shares of LETV, including 1.02bn Pledged Shares, accounting for 99.54% of Jia Yueting's shares.
In addition, the latest financial report released by LETV this evening shows that LETV lost 11.61 billion yuan in 2017, making a profit of 550 million yuan in the same period of last year, and realized an operating revenue of 7.46 billion yuan, a year-on-year decrease of 66.06%.
The third listed securities firm sued to recover LETV's pledge
Western securities announced this evening that after the impairment test of single financial assets, the company found that the capital principal of the pledged stock "LETV" of credit trading business was used as single financial assets to accrue the impairment provision of 439 million yuan, which was more than 30% of the company's owner's net profit in the most recent accounting year.
According to the data, as of December 31, 2017, Western securities has raised a total capital principal of RMB 1.0185 billion for pledge stock LETV. Including: 473.5 million yuan of principal to Jia Yueting, 296 million yuan to Jia Yuemin, 240 million yuan to Liu Hong and 9 million yuan to Yang Lijie.
As of the disclosure date of the Western securities announcement, the total number of shares pledged by Jia Yueting is 48999998 (including supplementary pledge and capital reserve converted into additional shares, the same below); the total number of shares pledged by Jia Yuemin is 31580000; the total number of shares pledged by Liu Hong is 39644574; the total number of shares pledged by Yang Lijie is 1858,04 4 strands.
According to the announcement of Western securities, Jia Yueting and Jia Yuemin have failed to perform their contractual obligations due to the expiration of relevant agreements on stock pledge type repurchase transactions, which has constituted a breach of contract. Liu Hong's failure to perform the corresponding contractual obligations after the expiration of the relevant agreements of stock pledge type repo transaction on January 22, 2018 has constituted a breach of contract. Western securities has filed a lawsuit with Shaanxi high court for breach of contract by the above three persons.
Yang Lijie's failure to perform the corresponding contractual obligations after the expiration of the relevant agreements of stock pledge type repo transaction has constituted a breach of contract. In order to protect its own legitimate rights and interests, Western securities has filed a lawsuit with Xi'an new city court, which has officially accepted the lawsuit.
According to the specific description of the provision for impairment of individual financial assets, Western Securities said that, in combination with the trend of LETV's opening of the floor limit since February 8, 2018, according to the principle of market law, the weighted average price of all trading days from the opening of the floor limit to the trading day before the board of directors was used as the benchmark to evaluate the value of the pledge object. As of February 26, based on the weighted average price of 4.74 yuan per share, the total provision for impairment of this asset is 439 million yuan.
The reasons for Jia Yueting's stock explosion
Although there are still highlights in the performance of stepping on thunder
On the same day, the listed securities firm Western securities issued a performance express. There is no doubt that the above-mentioned provision for impairment of 439 million yuan of single financial assets has become the main reason for the decline in performance. However, there are still bright spots in the overall performance of Western securities, and the bright spot lies in proprietary business.
Data shows that in 2017, Western securities achieved an operating revenue of 3.170 billion yuan, a decrease of 6.94% compared with 3.406 billion yuan in the same period of last year; and realized a net profit of 736 million yuan attributable to shareholders of listed companies, a decrease of 34.52% compared with 1.125 billion yuan in the same period of last year. As of December 31, 2017, the total assets of Western securities were RMB 5.146 billion, a decrease of 5.42% over the beginning of the year; as the company implemented share allotment in 2017, the owner's equity attributable to shareholders of the listed company was RMB 17.57 billion, an increase of 41.61% over the beginning of the year.
Western securities performance express also shows that in 2017, due to the fluctuation of the securities market, the annual market trading volume decreased by 11.73% compared with 2016. The company's bond underwriting revenue in its securities brokerage business and investment banking business decreased significantly year-on-year; the securities proprietary business grasped the direction of large asset allocation, and the revenue increased significantly year-on-year.
According to the business report card of Western securities in 2017 learned by Chinese journalists of securities companies, in April 2017, Western securities successfully completed share allotment, raising funds of 4.852 billion yuan, and the proportion of subscription is 97.17%. Western securities proprietary business accurately grasps the direction of asset allocation and achieves good business results.
In terms of brokerage business, in 2017, the company established 21 new business outlets in Western securities, including 3 in Zhejiang and 1 in Guangzhou. At the same time, the company deepened the layout of Internet finance, carried out the construction of "intelligent investment consulting" project, and gradually promoted the online operation of three modules, i.e. intelligent user portrait, intelligent investment consulting and intelligent customer service. Optimize and upgrade the Western securities Xintianyou app and Jinding Zhiying financial management terminal.
The investment banking business completed 7 IPO main underwriting and 2 non-public offering projects throughout the year. In 2017, the number of IPO issuance of the company was the best since its establishment. There are 40 new recommended listed companies in the stock to stock recommended listing business, 51 directional issues have been completed, and 171 listed companies have been listed in total, maintaining stable development. The research business transformed from internal service to seller market research, built a seller research platform, targeted to develop institutional customers, and the differentiated products of research business have been preliminarily recognized by the market.
Three listed securities companies have stepped on thunder
Prior to Western securities, two listed securities companies announced that they were stepping on thunder due to the default of LETV stock pledge. They are Founder Securities and Oriental Securities. Among them, Founder Securities has initiated a lawsuit to recover nearly 200 million yuan of pledge deposit, while Oriental Securities has raised 400 million yuan of capital due to LETV stock pledge. The company has announced on January 28 this year to withdraw the share pledge repurchase The provision for asset impairment is 178 million yuan.
Founder Securities issued a notice on litigation on December 5, 2017, in which major litigation cases of nearly 200 million yuan were related to LETV equity pledge.
According to the announcement of Founder Securities, from October 2016, Liu Hong signed an agreement with the company on stock pledge type repo transaction. Liu Hong pledged 6.5 million shares of LETV to Founder Securities with the initial transaction principal of RMB 100 million. At the beginning of July 2017, Liu Hong added another 2 million shares of pledge. As the equity registration date of LETV stock transfer from 10 to 10 in 2016 is August 24, 2017, the number of Pledged Shares of Liu Hong has changed from 8.5 million shares to 17 million shares.
In late July 2017, all the equity pledged by Liu Hong to Founder Securities was frozen by justice. Founder Securities required Liu Hong to redeem in advance, but Liu Hong and Shan Liuhuan failed to perform their debts as agreed. Founder Securities applied to the court for compulsory execution, requiring the person to be enforced to repay the company's financing principal of 100 million yuan as soon as possible, corresponding interest, liquidated damages, all expenses to realize creditor's rights and pledge rights and all other debts.
Similar to Liu Hong, Yang Lijie, another shareholder of LETV, successively pledged 80 million yuan to Founder Securities, and LETV Holdings (Beijing) Co., Ltd., as the guarantor, voluntarily provided joint and several liability guarantee for Yang Lijie's financing. In November 2017, Founder Securities asked Yang Lijie to buy back the pledged underlying securities in advance, but Yang Lijie and others failed to perform. Founder Securities applied to the court for compulsory execution, and asked the person to be enforced to repay 80 million yuan of financial capital as soon as possible and all debts such as corresponding interest, liquidated damages, all expenses to realize creditor's rights and pledge rights.
Another Dongfang securities involved in LETV's equity pledge dispute issued a notice on January 28 of this year on the provision for asset impairment, which mentioned that LETV's trading of pledged shares was suspended on April 17, 2017 and resumed on January 24, 2018. The capital principal of the business is 400 million yuan.
Dongfang Securities said that, in view of the failure to perform the obligations when the repurchase is due, and the company believes that the share price of LETV as of the date of this announcement is difficult to reflect its fair value, and there is greater uncertainty. According to the company's relevant accounting policies, the stock pledge buyback belongs to a financial asset with a single significant amount, which shall be tested for impairment separately, and the difference between the book value and the present value of the expected future cash flow shall be recognized as impairment loss. Dongfang securities made a provision for asset impairment of 178 million yuan for this stock pledge repurchase.