No suspense, LETV has been suspended. On the evening of May 10, Shenzhen Stock Exchange announced that due to the suspension of LETV's listing, it decided to suspend the listing of LETV's shares from May 13, 2019. What happened when LETV was suspended from listing? Jia Yueting, how much money do you owe?
The direct reason for LETV's suspension of listing is that its audited net assets in 2018 are negative. According to the annual report data, LETV's net assets attributable to the parent company at the end of 2018 were -3.026 billion yuan, and its net profit attributable to the parent company was -4.096 billion yuan. According to the relevant regulations of gem, negative net assets will trigger the risk of suspension of listing.
After the suspension of listing, the listed company will be delisted if it still loses money or fails to submit the semi annual report in the first half year. In theory, LETV still has a chance to turn over, but the hope is very slim.
According to the current financial situation of LETV, we can't turn around losses by our own ability, we can only hope for asset restructuring. However, at the performance presentation meeting on May 10, when asked whether there is an asset restructuring plan, LETV executives repeatedly responded that the company has no clear asset restructuring plan at present. To make matters worse, LETV and its major shareholder Jia Yueting were recently put on file by the CSRC for investigation on suspicion of illegal information disclosure.
From the first share of the gem, which used to be very popular, to now being suspended from listing, or even on the verge of delisting, the fate of LETV makes the capital market lament.
If it was Jia Yueting who led LETV to the top at the beginning, now it is Jia Yueting who has dragged LETV into the abyss. Jia Yueting, the founder and largest shareholder of LETV, should bear the main responsibility.
At the end of 2016, Jia Yueting issued an open letter admitting that LETV had encountered capital chain problems. Since then, LETV has rapidly fallen into the situation of loan withdrawal by financial institutions and supplier run. In 2017, after rongchuang strategy became a shareholder, Jia Yueting lost control of LETV. Since then, LETV has been deeply involved in the debt dispute with Jia Yueting.
Jia Yueting once said, "in view of the debt problem, I will be responsible to the end.". However, since he went to the United States to build a car in July 2017, he has never returned home. In the past two years, there has been no substantial progress on the debt issue.
As of December 31, 2018, the total debt scale of LETV has reached 12 billion yuan, and it has almost no hematopoietic capacity. Zhang Wei, general manager of letv.com, said that listed companies are facing huge pressure to repay due debts.
On the other hand, after rongchuang became the leader of LETV, sun Hongbin adopted the method of stripping LETV Zhixin (now renamed as LETV Zhixin), the core high-quality asset of LETV, out of LETV. Since then, LETV has been essentially a 'shell company' without core business. Therefore, some investors questioned at today's performance presentation meeting whether rongchuang was hollowing out LETV's assets?
From the perspective of rongchuang, as a high-quality asset that can produce synergistic effect with rongchuang, if it continues to stay in the LETV system, it may be dragged down by the huge debt of LETV. Therefore, it is necessary to introduce other strategic investors to make Lerong Zhixin gradually break away from the LETV system.
Step by step, LETV is now in a situation of huge debts, no core assets and no hematopoietic capacity. Now, who dares to put money into this bottomless hole?