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A huge loss of tens of billions, LeTV delisting countdown: 280,000 shareholders where to go?

The dust settled, LeTV delisted and entered the countdown stage.On April 26, LeTV announced its 2019 annual report. The annual report shows that the net profit attributable to shareholders of the listed company after the audit is approximately negative.800 million yuan.Since LeTV was suspended from listing on the Shenzhen Stock Exchange last year, and the first annual net profit after the suspension was negative, LeTV has the risk of being delisted by the Shenzhen Stock Exchange within 15 trading days after the disclosure of the annual report.According to the “GEM Listing Rules”, LeTV still has the opportunity to apply for re-listing after being suspended from listing, but the company’s performance in 2019 has not improved, and the company has lost tens of billions of dollars due to the illegal guarantee of LeTV Sports and Leshi CloudUS dollars.As the major shareholder of LeTV, Jia Yueting basically gave up the rescue of LeTV after going to the United States in 2017, and the successive Sunac also suspended its main members after being suspended from listing last year. After Liu Shuqing resigned as the chairman of LeTV., The company is handed over by the current chairman Liu Yanfeng.But LeTV can’t get out of the predicament.Last year the company’s budget was as high as 112.800 million in the first quarter of this year continues to be possible1.500 million US dollars, the company will ultimately blame the huge losses caused by the violation of the guarantee, as well as the replacement of the receivables of the major shareholder Jia Yueting and its related parties.Why did LeTV delist?The annual report triggers three delisting conditions According to the “GEM Listing Rules”, there are 15 situations in which the listed GEM companies may be suspended from being listed on the Shenzhen Stock Exchange, and LeTV’s 2019 annual report has triggered three of them, including the suspensionThe net profit of the first annual audit after listing or the net profit after replacing non-recurring gains and losses is negative, the audited net assets at the end of the first year after listing suspension are negative, and the first annual financial accounting report after suspension of listing is issued with a reservation, An audit report that cannot express an opinion or negative opinion.LeTV’s 2019 annual report revealed that last year’s net assets attributable to shareholders of listed companies were approximately -143.2.9 billion, the net profit is about -112.7.9 billion US dollars, and the “Audit Report 2019” issued by Dahua Certified Public Accountants for the company is a reserved opinion, so the company’s stocks will have the risk of being terminated by the Shenzhen Stock Exchange within fifteen trading days after the disclosure of the annual report.How to trade after delisting?Will be transferred to the New Third Board to continue trading. After LeTV was suspended from listing on the Shenzhen Stock Exchange last year, the company’s shares have been listed on the national small and medium-sized enterprise stock transfer system for transfer services.Now the delisting is only subject to the judgment of the Shenzhen Stock Exchange. Can LeTV’s stocks continue to trade after delisting?According to the “GEM Stock Listing Rules”, if LeTV does not apply for review of the Shenzhen Stock Exchange’s decision to terminate the listing, the company will enter the delisting from the next trading day after the 15 trading days after the Shenzhen Stock Exchange issues the listing termination decision.Finishing period.”GEM stock listing rules” stipulates that the trading period of the delisting consolidation period is 30 trading days, during which LeTV’s stocks enter the delisting consolidation board transaction and will no longer be disclosed in the GEM market.In addition, during the delisting period, the daily increase or decrease of LeTV’s stock price is limited to 10%. On the next trading day after the delisting period expires, the Shenzhen Stock Exchange will replace the company’s stock and LeTV’s stock will be officially terminated.However, the termination of listing does not mean that LeTV’s stocks can no longer be traded. After the delisting period, LeTV’s stocks will be transferred to the national SME share transfer system to continue trading. The “GEM Stock Listing Rules” clearly requires that listed companiesDo relevant work in a timely manner after the stocks are terminated from listing to ensure that the company’s shares can enter the stock transfer system and be transferred within 45 trading days after the expiration of the delisting period.How many shareholders does LeTV still have before delisting?With 280,000 shareholders, Jia Yueting was still the largest shareholder in LeTV.com’s 2019 annual report when he went to the United States for a long time. As of December 31, 2019, the total number of common shareholders of the company reached 28.07.67 million, with the data disclosed in the 2018 annual report (28.(094.2 million) ratio, the number of shareholders of LeTV last year has not changed much.After the announcement of the annual report on April 26 last year, LeTV has been suspended from trading. Since then, the Shenzhen Stock Exchange has announced a temporary listing decision, and the company’s stock has been transferred to the national small and medium-sized enterprise stock transfer system for trading.According to the data of LeTV’s 2019 semi-annual report, the total number of shareholders as of June 30, 2019 reached 28.07.11 million people, but increased 52 shareholders to 28 in the third quarter of 2019.0763 people, 4 shareholders increased in the fourth quarter.The data disclosed in the quarterly report shows that 22 new shareholders have been added. As of March 31 this year, the total number of common shareholders of LeTV.com was 28.07.89 million.The founder Jia Yueting is still the largest shareholder of LeTV. As of December 31, 2019, Jia Yueting holds about 9 companies.200 million shares, accounting for 23 of the company’s total share capital.07%, and all of these shares were frozen by the Beijing Third Intermediate People’s Court and other judicial departments, waiting to be frozen.With the 2018 score, Jia Yueting’s shareholding fell by 1.At 36%, Tianjin Jiarui Huixin Enterprise Management Co., Ltd., a subsidiary of Sunac, the second shareholder, did not reduce its shareholding, and its shareholding ratio remained at 8.56%.On April 29 last year, because of LeTV and Jia Yueting’s alleged breach of information and violation of laws and regulations, the CSRC decided to investigate the company and Jia Yueting.Attorney Xu Feng of Shanghai Chuangyuan Law Firm told reporters that there are currently more than 200 LeTV shareholders preparing to initiate a lawsuit on this matter, but there will be no substantial progress until the CSRC meeting is issued.What rescue work did LeTV do after the listing was suspended?Negotiations with related parties have not paid the debt but have not received the money. Attempt to correct the lack of funds. Although it was finally suspended from listing, in fact LeTV still has the opportunity to resume listing qualification, so the company has always hoped that Jia Yueting ‘s controlled parties can returnCompany funds to restore the company’s main business.But this wish fell through.LeTV stated in its annual report that the company has negotiated with related parties for many times since August 2018, because the key points of related party debt repayment have not been agreed, and the settlement and implementation of the solution rely on the majority shareholders ‘processing intentions and actual executionIn the circumstances, listed companies cannot obtain direct cash inflows due to debt settlement.”In the end, the major shareholder and its related party debt processing team did not come up with a complete treatment plan that could be executed in substance, and the listed company did not receive any cash for the debt settlement.”LeTV.com said that since 2019 the company has negotiated with the supplier to postpone the settlement period, apply for the loan amount, date cash borrowing or capital increase to temporarily reduce the shortage of funds of listed companies, while restoring the company’s reputation, market share, and improving service quality., Tapping R & D potential and other aspects, continuously improving business level, with a view to achieving operational cash inflow to meet daily operating costs and expenses.As of now, related work is still ongoing.In addition to Jia Yueting’s related parties have not returned the funds, another hit of LeTV.com is the expenditure of LeTV Sports’ illegal guarantees.According to LeTV.com’s disclosure, LeTV Sports has filed a lawsuit against the company against the company’s non-compliance against LeTV Sports’s guarantee case, and one party’s investor has filed a lawsuit against the company. Of these, 17 arbitration cases have issued arbitration results and the company lost the lawsuit.In the end, LeTV.com decided to accrue about 74 compensation for LeTV sports cases based on prudent consideration.More than 8.4 billion yuan, resulting in the company’s net profit exceeding 10 billion yuan last year.In addition, LeTV’s main business (advertising / member distribution, etc.) performed weakly, and the debt pressure was huge.Last year LeTV achieved receivables 4.9.9 billion yuan, a year-on-year decrease of 67.99%, and until December 31, the company’s consolidated statements within the scope of long-term and short-term repetitions totaled 5.55 trillion, 33 other current liabilities.0.4 billion, other non-current debt 30.USD 4.9 billion, and the outstanding principal and interest of Zhongtai Chuangying Loan advanced by Tianjin Jiarui’s borrowing in November 2017 and Sunac Real Estate on behalf of Shishi.Sauna, Ye Wang Lu Yifu Editor Li Weijia Proofreading Li Shihui