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What's the matter with LETV's suspension today? What's the truth behind the suspension of LETV today

What's the matter with LETV's suspension today? What's the truth behind the suspension of LETV today? LETV has been in a precarious situation since the Jia Yueting storm. In the early morning of April 26, Beijing time, LETV announced that the company's shares would be suspended from the opening of the market on April 26. Why is LETV suspended? Let's take a look at the detailed cause analysis!

According to the GEM Listing Rules, LETV has reached the condition that 'the financial accounting report of the latest year shows that the audited net assets at the end of that year are negative'. Therefore, LETV has the risk of delisting.

In 2018, LETV and its subsidiaries achieved a total revenue of 1.558 billion yuan, of which the operating business (advertising and payment business) generated a total revenue of 854 million yuan, accounting for 54.82%.

The revenue from copyright distribution and TV series distribution was 271 million yuan, accounting for 17.43%. Compared with the same period in 2017, the above revenue showed a significant downward trend, mainly because the company's brand reputation continued to be damaged in 2018, and the company's operation was in a low state.

Since 2016, LETV has formed a large number of related receivables and prepayments by selling goods, providing services and other operating businesses to the related parties controlled by Jia Yueting and fund transactions such as prepaid expenses.

As of December 31, 2018, the debt balance of major shareholders and their actual controlled enterprises to the scope of merger of listed companies has reached about 2.8 billion yuan.

Event of LETV's suspension:

November 6, 2016

Jia Yueting publicly acknowledged the tight capital chain of LETV. At that time, he pledged 983 million shares of LETV, accounting for 24.63% of the total share capital.

January 13, 2017

LETV introduced a number of strategic investors including rongchuang China, with a total investment of 16.8 billion yuan.

May 21, 2017

Jia Yueting resigned as general manager of LETV and Liang Jun took over.

July 21, 2017

Sun Hongbin became the new chairman of LETV.

October 27, 2017

LETV asked Jia Yueting and Jia Yuefang to continue to fulfill their loan commitments.

September 22, 2018

With a price of about 773 million yuan, rongchuang took over the shares of Lerong Zhixin and LETV pictures from LETV holdings.

August 17, 2018

The debt scale between letv.com and LETV's Unlisted system was identified as 6.7 billion yuan.

April 18, 2018

Lerongzhixin was invested by 8 companies including Tencent, Jingdong, Suning sports and TCL, with a total capital increase of 1.9 billion yuan.

March 14, 2018

Sun Hongbin resigned as chairman of LETV, quit the board of directors, and no longer holds any position in LETV.

December 13, 2018

LETV announced that Liu Shuqing, general manager of the company, applied to resign and Zhang Wei took over.

December 19, 2018

LETV announced that it would no longer constitute the actual control of Lerong Zhixin, and Lerong Zhixin officially issued the form.

January 8 - April 15, 2019

In the meantime, LETV holding's Shimao & middot; industrial and commercial real estate was sold three times.

April 25, 2019

LETV fell its limit for four consecutive days and entered the countdown to the suspension of listing.