There is not much time left for LeTV.

Editor’s note: This article is from the micro-channel public number “sprout NewSeed” (ID: pelink) , Author: Liu Bo Ning Jersey.

LeTV, which used to have a market value of 100 billion yuan, is now afraid to say goodbye to GEM.

On the evening of April 26, LeTV released its 2019 financial report. For the entire year of 2019, the company’s net profit again suffered a huge loss of 11.28 billion yuan. Coupled with the losses of the previous two years, the company’s net profit in the past three years has accumulated up to about 29 billion yuan, and it has been insolvent for two consecutive years. At the end of 2019, its net assets were -14.33 billion yuan.

According to the listing rules of the GEM stocks, LeTV has touched on a number of terms to terminate the listing, and the delisting is almost a foregone conclusion. This farce is finally coming to an end.

Looking back to listing in 2010, LeTV created countless myths, with a market value of more than 170 billion yuan, which was called “the first gem of the GEM”. At the end of 2016, the entire LeTV system crisis broke out, and Jia Yueting escaped from the United States the following year. And he left a lot of problems, dragging LeTV to the depths of the quagmire step by step, and the occupation and illegal guarantees brought the loss of LeTV to more than 10 billion.

Now, there is not much time left for LeEco.

Gou Yan is still breathing, LeTV counts down when entering the market

On the evening of April 26, LeTV released its 2019 annual report.

Annual report data shows that for the entire year of 2019, LeTV only achieved operating income of 486 million yuan, a year-on-year decrease of 68.83%; net profit and net profit were once again a huge loss of 10 billion yuan, with a loss of 11.28 billion yuan, a year-on-year decrease of 175.39%. As of the end of 2019, LeTV’s net assets attributable to shareholders of listed companies were -14.3 billion yuan.

On the same day, LeTV also disclosed the financial report for the first quarter of 2020, showing a current loss of 150 million yuan. According to the GEM stock listing rules, LeTV.com has already touched on a number of listing termination clauses. The risk of the company ’s stocks being terminated by the Shenzhen Stock Exchange within fifteen trading days after the disclosure of this announcement.

In fact, since 2019, LeTV has repeatedly issued announcements that remind the company of the risk of delisting. In May 2019, LeTV was suspended from listing due to the negative net assets audited in the 2018 annual report. According to the regulations of the Shenzhen Stock Exchange, a listed company will be forced to be delisted if its business conditions do not improve after a year of suspension.

LeTV stated in the risk announcement that the company faced many historical problems that could not be resolved effectively and in a timely manner, and at the same time faced a large number of debt defaults due to extremely tight cash flow, and then passively responded to many lawsuits and judgments that could not be executed in the short term. publicThe company’s financial and market credits have fallen to the bottom, and business development has been hampered.

LeTV ’s employees have lost a lot. The financial report shows that as of the end of 2019, LeTV’s total number of employees was 356, a decrease of 80% compared with 1,727 at the end of last year.

In the annual report released this time, LeTV also stated that the risk of the company’s stock being terminated from listing on the Shenzhen Stock Exchange within 15 trading days after the company’s stock deposit announcement was disclosed.

Since the end of 2016 was in trouble, LeTV’s operations have plummeted, and operating income has plummeted. In 2017 and 2018, the company’s operating income was 7.03 billion yuan and 1.56 billion yuan. Revenue in 2019 is only about 7% of 2017.

In addition to the previous two years, the total loss of LeTV in the past three years has approached 29 billion yuan. In 2017 and 2018, the company’s net profit losses reached 13.89 billion yuan and 4.1 billion yuan, respectively. In the first quarter of this year, revenue has fallen to only 88.95 million yuan, with a net profit loss of about 150 million yuan.

Unexpectedly, LeTV will be terminated from listing. Before the suspension of listing, LeTV’s closing price was 1.69 yuan, with a market value of 6.742 billion yuan, long gone.

“Death” of Fortune LeTV: Sheng Ye Jia Yueting, Lost Jia Yueting

Jia Yueting, the former glory of LeTV and the decline of today, cannot be separated from one person.

The time goes back to 1998. When China’s Internet wave came, all Jia Yueting left behind and came to the capital, Beijing, to start his journey to suffocate his dream.

Jia Yueting, who came to Beijing, established Beijing Siber Communication Technology Co., Ltd. and began to get involved in the Internet. In 2004, LeTV, which was born in the streaming media department of Beijing Siber, was officially established, and Jia Yueting officially challenged several mainstream video sites.

From 2004 to 2009, when the piracy of video sites became popular, Jia Yueting had a unique way to implement a genuine payment strategy. He purchased a large number of copyrights for movies and TV dramas that sold “cabbage prices” at that time. As of April 2010, LeTV owns 2324 movie copyrights and 43,100 episodes of TV series copyrights.

According to the prospectus and LeEco ’s early annual report, LeEco has achieved profitability three years before its listing, and it has grown substantially every year. Among them, in the four years from 2007 to 2010, the proportion of paid user revenue to total revenue decreased from 86% to 41%, while the revenue from advertising and user diversion increased from 14% to 32%. The original zero copyright distribution revenue in 2010 Accounted for 21% of revenue.

The fast-running LeTV was listed on the domestic GEM in August 2010, which is four years earlier than the listing of Youku in the United States.Months, making it the first listed company in the domestic video industry, and in less than three years after listing, the market value exceeded the merged Youku Tudou.

LeTV, which started with film and television copyrights, has successively launched a series of hardware devices such as super TVs, smart set-top boxes, and super phones. In 2016, it completed the acquisition of Coolpad and founded ecological companies such as LeTV Sports. During this period, LeEco set a new market value of more than 170 billion yuan in 2015; Jia Yueting reached his personal peak in 2016, and his worth was ranked 37th on the Forbes China Rich List.

But at the same time, LeTV’s crisis is gradually emerging. At that time, among the seven major ecosystems of LeTV, only LeTV and LeTV Pictures in the content ecosystem were in a profitable state, and all other ecosystems suffered losses. But Jia Yueting is still continuing the expansion of LeTV, continuously extending its “platform + content + terminal + application” ecological chain, and increasing investment in real estate and land. Among the at least 34 wholly-owned and non-wholly-owned subsidiaries of LeTV Holdings, 15 companies are new companies incorporated between 2015 and 2016.

In August 2016, LeTV ’s mobile phone supply chain was exposed to financial problems. According to incomplete statistics, there are dozens of suppliers and agents involved, and the amount of money involved is about billions of yuan Let the LeTV system fall into a crisis of tight funding, a large number of investment institutions began to withdraw from LeTV.

Although Jia Yueting admitted in his internal letter that the pace was too fast resulting in insufficient funds for the company, but after a long time of reflection, he waved his hand and announced that he would build a car in the United States. , Went to the other side of the ocean and devoted himself to his car-making dream. Since then, LeTV has fallen into a trough.

LeTV will be withdrawn from the market, will Jia Yueting return to China?

After Jia Yueting announced to go to the United States to build cars, Sun Hongbin, who had just invested 15 billion in LeTV, Lerongzhixin, and LeTV Pictures, had to take over as chairman of LeTV. During his tenure, Sun Hongbin took a series of measures to carry out drastic reforms, but still did not reverse LeTV’s decline.

In addition to the huge performance loss, LeTV has many problems, including further tight cash flow, greater pressure on LeTV to pay off its debt, loss of foreign investment LeTV will bear the responsibility, and the subsidiary counter-guarantee or be legally disposed . Sun Hongbin may really feel that he has been “powerless to return to the sky”, and has ended his career as chairman of LeTV.com for more than 200 days.

Since then, LeTV has changed coaches several times, ranging from Sunac executive Liu Shuqing to less than a year, and to Liu Yanfeng, who currently holds several positions.

On the other side of the ocean, Jia Yueting’s dream of making cars was not smooth, and even embarked on a personal bankruptcy. In October last year, Jia Yueting announced the initiative to apply for personal bankruptcy and reorganization, at the same time set up a creditor trust, and when the conditions are met, allProperty is transferred to creditors. After the plan is completed, Jia Yueting will no longer hold any equity in Smart King, the parent company of FF.

It is reported that Jia Yueting’s bankruptcy, reorganization and settlement are basically due to debt problems arising from personal guarantees, all of which are generated by personal guarantees when LeTV entities finance. Since July 2017, it has solved a total of over 2.7 billion yuan in related debt owed by the listing system (including Lerong Zhixin). In this creditor trust plan, Jia Yueting has also simultaneously considered its LeTV related debt issues.

In a letter to Jia Yueting ’s creditors that was announced recently, Jia Yueting deeply reflected on the success of the ecological model and the failure of LeEco. He believed that too fast the pace of strategy, mistakes in capital strategy and insufficient management capabilities were LeEco. The three fatal causes of failure, even he himself very much agrees with the outside world’s evaluation of him as “Ying Yue Jia Yueting, Losing Jia Yueting”.

But only admitting more mistakes verbally will not have any substantial effect on reversing LeTV ’s posture.

LeTV has repeatedly emphasized that since the company ’s operating crisis, Jia Yueting has repeatedly stated that he promises to repay, but there is no actual action of guarantee. LeTV believes that Jia Yueting, as the actual controller of the company, should bear the responsibility of the major shareholders as soon as possible, come up with a practical solution to the problem of related party debts, and undertake his own obligations to rescue LeTV and protect the rights of small and medium shareholders.

From the perspective of LeTV, Jia Yueting ’s return to China may be the correct solution, but for now, he still has to wait hard.