Compared with the same period of last year, the loss increased by 175%.

Editor’s note: This article comes from Interface News , author Zhou Yixue .

On the evening of January 20th, LeTV (300104.SZ) released a forecast of 2019 performance, with an estimated loss of 11.28 billion yuan. In the same period of the previous year, the loss was 4.1 billion yuan, and the loss expanded by 175%.

According to the rules of the Shenzhen Stock Exchange, LeTV may be forced to delist after the official announcement of the annual report.

In April 2019, LeTV disclosed its 2018 annual report, and its net asset indicator was negative. According to the relevant provisions of the GEM, in May 2019, LeTV was suspended by the Shenzhen Stock Exchange.

LeTV is about to end its one-year suspension period. One month ago, in an interview with Interface News, Liu Yanfeng, the general manager of LeTV, said that whether the company can resume listing depends on the situation after the audit report in 2019. If the company delists to the third board market, the company will continue to operate.

In the announcement of the performance forecast, the reason for the huge loss was mainly because the listed company failed to implement the approval, review, and signing procedures of the listed company as required by laws and regulations such as the Company Law and the Articles of Association, and the listed company was not authorized. Under the background of the agent’s signing of the contract, the current management as the signatory exceeded the authority of the agent to sign the contract and caused huge economic losses to the company.

According to Caixin.com, the contract signed by “Beyond the Permission of Agents” mainly refers to the repurchase clauses set by LeTV Sports when it introduced A + and B rounds of financing in May 2015 and April 2016-if Prior to December 31, 2018, LeTV Sports could not complete the listing. The original shareholders repurchased in the form of cash with an annualized return on investment of not less than 12%, and the repurchase responsibility was jointly assumed by LeTV, Lele Interactive and Beijing Pengyi.

In the announcement of LeTV.com, as of the end of the reporting period, the company had arbitrated with the 18-party investors of LeTV Sports in the case of violations of the rules by LeTV Sports, of which 15 arbitration cases have been issued and the other 3 arbitration cases are still in progress. During the trial. The 15 arbitrations that have already been issued are all losses of the company. After fully assessing the pending arbitration results and the possibility of potential future lawsuits, the company accrued approximately RMB 9.8 billion in liabilities for LeTV Sports and LeTV Cloud based on prudential considerations. .

LeTV also said that the company is currently actively demanding Jia Yueting to be responsible for the listed company’s related debt issues, and instructed Jia Yueting and his affiliates to settle their actual debts to listed companies with cash or their holdings and assets. In the settlement plan of the debt processing team of the non-listed system, the payment was not made in cash.City companies cannot obtain cash support in the short term, and the operating difficulties of listed companies due to lack of funds cannot be directly and effectively resolved.

On October 13, 2019, Jia Yueting applied for a personal bankruptcy reorganization to the Delaware Bankruptcy Court in the United States. The core of his proposed debt restructuring plan was to load the 40.8% FF equity held by Jia Yueting into the debt repayment trust. FF equity interest to replace the debt owed. But the scheme has not been approved by most creditors (more than two-thirds). If Jia Yueting’s debt restructuring plan is not passed, it will be turned into personal property bankruptcy liquidation.

At present, according to Jia Yueting, the total amount of debt owed is US $ 3.2 billion. Assets are divided into domestic and foreign assets. Domestic assets have been completely frozen, including CITIC Bank and China Merchants Bank ’s US $ 88,000 deposits and value. Property valued at approximately $ 4.74 million and equity valued at approximately $ 217 million. Foreign assets are FF equity. According to FF disclosure, the current value of FF equity held by Jia Yueting is about 1.2 billion US dollars.