What's the matter with Jia Yueting's investigation by CSRC? The suspension of LETV's listing is basically a foregone conclusion. LETV announced on the evening of April 29 that the company and Jia Yueting, the largest shareholder, received the "investigation notice" (jzjz No. 191339 and jzjz No. 191341) from China Securities Regulatory Commission on the afternoon of April 26, 2019 and April 29, 2019 respectively. Because the company and Jia Yueting were suspected of information disclosure violations, according to the relevant provisions of the "Securities Law of the people's Republic of China" The company and Jia Yueting were investigated.
How does CSRC investigate Jia Yueting
During the investigation period, the company and Jia Yueting will actively cooperate with the investigation work of China Securities Regulatory Commission and perform the obligation of information disclosure in strict accordance with regulatory requirements.
According to LETV's 2018 annual report, the net profit attributable to the shareholders of the listed company in 2018 was -4.096 billion yuan, with a loss of 1.0266 yuan per share. By the end of 2018, LETV's net assets attributable to shareholders of the listed company were -3.026 billion yuan.
In addition, according to the annual report, as of February 1, 2019, the company disclosed that the amount of litigation objects corresponding to the execution of the sued cases is about 671 million yuan, and the amount of litigation objects corresponding to the litigation cases is about 5777 million yuan.
LETV achieved a revenue of 129 million yuan in the first quarter of this year, a year-on-year decline of 70.54%, and a loss of 177 million yuan.
Last week, LETV continued to drop its limit, and there were still more than 1.7 billion yuan of funds accumulated to buy shares and raise funds. Even on April 25, more than 900 million yuan scrambled to raise funds to buy shares, breaking the last limit before the suspension of LETV.
As of April 18, 2019, Jia Yueting is still the largest shareholder of LETV, holding 920 million shares of the company, accounting for 23.1% of the total share capital, of which 857 million shares have been pledged, accounting for 21.49% of the total share capital of the company; 920 million shares of the company held by Jia Yueting have been frozen and waiting to be frozen by Beijing third intermediate people's court and other judicial departments.
LETV has repeatedly issued a suggestive announcement about the risk of stock suspension
LETV has issued several suggestive announcements about the risk of stock suspension. According to the relevant provisions of 13.1.1 of the GEM Listing Rules (revised in November 2018), if the financial and accounting reports of the company in the most recent year show that the net assets of the year end are negative, or the financial and accounting reports of the last two years are issued by certified public accountants The company's shares will be suspended from listing if the auditor is unable to express his opinion on the audit report. At present, LETV already has these two conditions.
According to the gem stock listing rules, LETV's suspension of listing is basically a foregone conclusion.