Seeing him as a tall building, he watched him banquet guests and saw him collapse.
Editor’s note: This article is from WeChat public account “阑夕” (ID:techread), the author of the editorial department.
Jia Yueting, who has been quiet for a long time in the domestic media, once again stood on the cusp of public opinion.
In a short week in mid-October, the first account with the ID “Jia Yueting Debt Processing Team” released Jia Yueting’s specific information on applying for personal bankruptcy reorganization under Chapter 11 of the US Bankruptcy Law. Jia Yueting and Gan Wei have applied for divorce in the Jinjiang District People’s Court in Chengdu, and Beijing court documents show that LeTV’s headquarters building in Beijing will also be sold at a discount of 30% off the valuation.
Individual bankruptcy, star divorce, 30% off sales, any one of them is enough to board the headlines of the day. Jia Yueting gathered it all in one, sucking the eye, just don’t know if this eye-catching is really true. It is what he wants.
According to Jia Yueting’s personal bankruptcy application documents, his current external debt is between RMB 7 billion and RMB 70 billion – due to the large number of creditors and creditors, there are too many associated debts, and the exact figures are no longer available.
And just three years ago, Jia Yueting was ranked 31st in the 2016 Hurun China Rich List with a total of 42 billion.
Looking at him from a tall building, he watched him banquet guests and saw him collapse.
In February 1973, Jia Yueting was born in an ordinary peasant family in Beizhitun Village, Jixian County, Shanxi Province. He had a brother and a sister. In 1995, after Jia Yueting graduated from the Accounting Department of Shanxi Provincial Finance and Taxation College, He worked in the network technology administrator position of the Local Taxation Bureau of the Yuanqu County. After one year, he left the company and started the excellent industrial company.
It is understood that this excellent industrial company has a wide range of activities,Across the fields of coal processing, logistics and transportation, private education, steel trading and catering, the most famous of which is also the most widely known today is a private school called Distorted Bilingual School. The only private school in Yuanqu County, from primary school to high school.
Despite the business in a county market in the 1990s, the market size ceiling is hard to say, but in any case, Jia Yueting has earned the first pot of gold in his life.
In 1999, Jia Yueting founded Siboer Electronic Engineering Co., Ltd., and expanded his business to Taiyuan City. He is mainly engaged in the wholesale and retail of electronic components such as power accessories. In 2002, Shanxi Xiboer was established, and it was quickly changed to be registered as Shanxi Xibeier Communication Technology Co., Ltd., and its main business was also changed to a mobile communication base station supporting project. In 2003, Jia Yueting founded Beijing Xiboer Communication Technology Co., Ltd. in Beijing.
At this point, Jia Yueting’s career focus has been changed from misrepresentation to Taiyuan to Beijing, achieving a triple jump.
Interestingly, Jia Yueting’s life stage has always had some mysteries, such as a peasant family. After graduating from college, he can start a company with 500,000 registered capital, and his business scope can span many In the field, what kind of help did Jia Yueting’s first wife, Li Li, and his family background provide for him?
For example, after Jia Yueting established Shanxi Xiboer in 2002, there was no accumulation in the field of communication technology and there was no background in resources. Why can I quickly win the majority of Unicom’s business in Shanxi?
These questions are directly related to Jia Yueting’s family history, but they are all unknown in various public materials. Jia Yueting himself is also very ignorant.
But it is certain that from 1995 to 2003, in the first eight years of Jia Yueting’s entry into the society, his performance was behind the qualities of a smart young man – restless, risk-taking, Good at discovering opportunities but impetuous, poor execution, and lack of concentration.
These qualities have also influenced the later generation of Jia Yueting, while constantly setting up new companies and turning business and capital from the old company to Xingong.In the process of the division, Jia Yueting has applied his professional accounting knowledge to his work very well, and the capital operation has become more and more mature.
In 2004, Jia Yueting established LeTV Information Technology Co., Ltd., which was born out of Beijing Sibel. Its main business scope is online video, and Jia Yueting left behind in Xibeier, Shanxi, after the shell of Sibel Technology. It was completed in Singapore in 2007 and IPO financing was 200 million RMB.
The earliest company of excellence was also completed by Jia Yueting in 2006, and it was also cut.
In 2010, Sibel Technology issued additional shares on the grounds of exploring Lexus’ new business and refinanced more than RMB 50 million. Since then, the operating conditions have gone from bad to worse, the losses have been rising year after year, and the losses have continued to rise. In March 2016, the market was delisted. Jia Yueting and LeTV completed the cutting – as for the two financings, they have already been delivered to LeTV.
In fact, LeTV has always been the main position of Jia Yueting’s capital operation. On the one hand, online video websites that rely on the three giants of BAT, such as Youku, Iqiyi, and Tencent Video, have been deeply burned by copyright wars. At the time of the loss of the quagmire, LeTV declared that it had achieved profitability and was the first to land on the A-share GEM in 2010.
Know that these online video sites have not been profitable until today. The news of the successful listing of LeTV naturally caused an uproar at the time. Huaxing Capital CEO Bao Fan directly pointed out: “A video website ranked 17 has the industry’s first financial indicator, and it is a trick.”
At the end of 2014, the former director of the China Securities Regulatory Commission’s Investor Protection Bureau, Li Liang, during his tenure at the CSRC, provided assistance to 9 companies including LeTV and applied for public offering or listing, and received over $6.93 million in property. And transferred to the judicial authorities to investigate the criminal responsibility, in addition to a number of members of the audit committee participating in the LeEco IPO were taken to take enforcement measures.
On the other hand, LeEco IPO had a 60-fold P/E ratio at the beginning, and its share price continued to soar. In 2014, it topped the GEM with a market capitalization of 41 billion. By the time of the peak of the bull market in May 2015, LeTV’s market value has reached a staggering 1780 billion yuan, its share price has risen 46 times in 5 years.
Behind this, Jia Yueting continued to open up new business positions through LeTV, and told the capital market one new story after another, which won the recognition of the latter, including the creation of LeTV in 2012 and the launch of the TV box. LeTV, founded in 2014, LeTV, LeTV Sports, launched LeTV mobile phone, LeTV Financial in 2015, and acquired Yidao. In April of the same year, it held the famous PPT car launch conference and officially announced its entry into the automotive field.
Also at this conference, Jia Yueting left the golden sentence of the world, “Let us join us and suffocate for the dream!”
At this point, Jia Yueting has formed a lineup of “ecological anti-” system for LeTV’s meditation planning – content ecology, big screen ecology, mobile phone ecology, sports ecology, cloud ecology, automobile ecology and financial ecology.
This stage of the Jia Yueting shopping malls seems to be a world apart from the previous period, both in terms of the size of the enterprise, the size of the market, and from the perspective of strategic planning and capital operation. However, it is essentially the same. That is, we will continue to explore new areas, create stories by telling stories and draw big pies, and seek financing and additional issuance.
At this stage, the outside world’s evaluation of Jia Yueting also reached its peak. Forbes China called it the “first CEO”, and Hu Run believed that Jia Yueting might be one of the candidates for the richest man in China in the future because “he is in every The industry’s vision and judgment ability is very good, and many excellent talents are discovered in various industries.”
However, this stage andAnother point in the early stage of Jia Yueting’s entrepreneurial performance is that each new business will have a short-term profit or highlight period, and will soon lose interest. At this time, Jia Yueting’s business focus has shifted to a new position.
The so-called ecologicalization of LeTV has never been able to see the effect. Every business field is a beautiful bubble. When the bubble is blown to the maximum, the next step is to break the end.
In the second half of 2016, Jia Yueting opened the curtain of eco-anti-crashing with LeTV’s open letter of “Lee’s sea and flame: whether it was swallowed by huge waves or boiled the ocean”.
The reason for talking about the collapse of LeTV is actually very simple, that is, the capital chain is broken.
Jia Yueting has broad market prospects for every business area that LeTV plans, but it is also an area that needs to be burned in the early stages of development.
An intuitive example is that iQiyi, Youku Tudou, Tencent Video can burn money because they are backed by the three giants of BAT, which have a monopoly position in search, e-commerce and social networking. Ample cash cows guarantee the burning of new business.
What is LeTV? The seven business areas, each of which is a big money-burning household, is only reasonable.
As a result, from the second half of 2016, LeTV’s share price plummeted, falling 39.08% in the same year. In 2017, in the tug-of-war and suspension trading, LeTV’s share price fell more than 14%, and as of the end of April this year, LeTV The stock price has fallen by 99.% from the highest point, the total market value has shrunk by more than 95%, and more than 290,000 shareholders have been secured.
Interestingly, even so, the outside world’s evaluation of Jia Yueting has never been a one-sided situation. Some people call it a dreamer, and some people call it a liar.
As in 2017, one of Tencent’s co-founders, Li Qing, slammed LeTV in the circle of friends as a Ponzi scheme, and in January 2017, Sun Hongbin, who chose to invest 16 billion yuan to take over LeTV, commented: “Those attacks Jia Yueting’s person, you don’t even have a finger at him.”
We all know the story. The burnt out of 160 billion LeTV still failed to be helped. Sun Hongbin also made a review at the annual performance conference, acknowledging that investment music is a failure. .
At the time when LeTV was unable to return to the sky, Jia Yueting and his family have already surrendered billions of dollars through additional issuance and equity pledge financing.
According to public data, before and after Jia Yueting’s first reduction, he directly and indirectly held about 830 million shares of LeTV, accounting for 44.85%. In June 2015, October 2015 and January 2017, Jia Yueting Thirdly, the company reduced its holdings and transferred 18.4% of the shares and cashed in 11.741 billion yuan. As the second largest shareholder of LeTV, his sister Jia Yuefang reduced his holdings of 2.284 billion yuan from the beginning of 2014 to the beginning of 2015.
At this point, only Jia Yueting’s brother and sister completed a cash withdrawal of 14.025 billion yuan through the reduction and transfer of LeTV shares.
In the middle of 2017, Jia Yueting resigned from the general manager of LeTV.com, the representative of LeTV Holdings, and the chairman of LeTV. He also arrived in the United States on the evening of his resignation as the chairman of LeTV. When staying at LeTV Building to collect debts, he or she has repeatedly boarded the list of dishonestys, or the Securities and Futures Commission issued a notice urging him to return to China to fulfill the obligations of the company’s actual controller. Jia Yueting did not return, and he stepped into the country next week. “The status of Schrödinger.”
In this period, Jia Yueting’s personal dynamics did not stagnate, but frequently forwarded Faraday’s future official propaganda or Faraday’s latest developments in the car, and matched inspirational texts such as “effort, on the road, and firmness”. Even on the day of the Tanabata, Mid-Autumn Festival, Christmas and other festivals, I would like to wish the employees a happy holiday. It can be said that it is very meticulous and meticulous.
Almost at the same time, thousands of LeTV suppliers, investment institutions and investors have also climbed the peak of LeTV’s debt collection. Most of them are small and medium-sized enterprises, and LeTV’s debts are also However, it is a million, ten million level, but I don’t know why LeTV chose to repay the nearly 10 billion loans of the Jia Yueting family.
The law seems to have lost its effect on LeTV’s arrears. According to the law, LeTV and suppliers are not labor disputes, but economic disputes can only be resolved through legal proceedings, which means that the entire debt collection process can take up to 2 years and up to 5 years. .
Interestingly, LeTV seems to be the wrong side. In October 2017, LeTV announced that it would urge Jia Yueting and his sister Jia Yuefang to continue to fulfill their loan commitments. It shows that since May 2015, Jia Yueting and Jia Yuefang have promised to reduce their shares. Borrowed to LeTV as 7.378 billion, but actually only borrowed 110,000.
In the recent personal bankruptcy application statement of Jia Yueting, Jia Yueting has repaid more than $3 billion in debt for the company. Subsequently, LeTV announced that “LeTV.com has repeatedly declared that it has guaranteed repayment since the outbreak of the business crisis in 2017. However, there has been no guarantee for actual action… Up to now, the major shareholders and their related party debt handling teams have not taken With a complete processing solution that can be implemented in substance, LeTV does not receive any cash for the debt solution.”
From this point of view, Jia Yueting and LeTV are really a foolish account.
In fact, in 2017, when the Beijing court seized Jia Yueting’s two-bedroom property in Beijing, it was found that Jia Yueting had no other bank deposits available for execution, no other housing registration records, and no vehicle registration records.
According to public information, Jia Yueting has been frequently operating in the United States through his personal holding company, Ocean View Drive INC, since 2015, both to isolate debt disputes and to invest in real estate. This includes five villas in a seaside town in the south of Los Angeles. Each set has an average price of $7 million. Faraday has also spent $20 million to purchase two properties.
After media reports, these properties have been loaned to the future transition of Faraday by Jia Yueting mortgage financing as Faraday falls into the capital chain.
Of course, just as a few years ago, Jia Yueting announced that he would pledge LeTV shares at a high level and financed loans to LeTV. However, after the company cut, the latter issued an announcement denying that it had received the loan. We also did not know that it had completed the personal bankruptcy application in Jia Yueting. After the transfer of Faraday’s future shares, will you see an announcement from Faraday’s future “urging Jia Yueting to fulfill the loan agreement”.
Aside from private life and investment, Jia Yueting’s car-making business has also attracted attention from outside during this period. In June 2018, Evergrande and Jia Yueting’s team reached a $2 billion deal in exchange for Faraday. The controlling stake in the future, but this honeymoon lasted only four months. After the Evergrande made $800 million, the two sides fell into a dispute.
In Evergrande’s view, Faraday has never met the performance requirements for payment in the future. Faraday believes that the performance requirements for subsequent payments are to produce pre-production cars before August, in Hanford on August 28. The first pre-production car of the FF91 in the factory is proof that it has reached the gambling requirement.
This Rashomon’s emergency arbitration results in a win-win situation: Evergrande won the Faraday’s future financing consent and enjoys the right to purchase new shares, and Evergrande cannot prevent Faraday’s future. Conditionally obtain funds from other sources of financing.
It is worth mentioning that although Evergrande subsidiary Evergrande Health is already the largest shareholder of Faraday’s future and holds 45% of the latter’s shares, Jia Yueting has “1 vote top” due to the influence of AB shares. The 10-vote rights still have absolute control over Faraday’s future board of directors.
In March of this year, it was reported that the ninth city and Faraday will reach a future cooperation, and a joint venture will be established to produce and sell luxury electric vehicles in China.
In any case, starting from the announcement in 2014 that “making a car for a dream”, Jia Yueting’s road has been going through five years, based on the fact that the so-called FF 91 pre-production model has been off the assembly line for more than a year. In the case of Faraday’s continuous introduction of expert talents and star executives, we have yet to see the mass production of the “Jia Yueting” car.
