Le.com will cut its price to 4.8 billion yuan and no longer be used to repay loans

On the evening of August 31, Le.com (300104) issued an announcement stating that comprehensively considering the capital market situation and the company's financing plan, and in accordance with the authorization of the company's shareholders 'meeting, the company's board of directors adjusted or supplemented the non-public offering of A-shares, and partially revised and supplemented the "Plan"(released on May 26, 2015).

On the evening of August 31, Le.com (300104) issued an announcement stating that comprehensively considering the capital market situation and the company's financing plan, and in accordance with the authorization of the company's shareholders 'meeting, the company's board of directors adjusted or supplemented the non-public offering of A-shares, and partially revised and supplemented the "Plan"(released on May 26, 2015). This issuance does not constitute a related transaction.

According to the announcement, there will be no more than 5 (inclusive) recipients of this non-public offering, and the number of A shares issued in the non-public offering will not exceed 155 million shares; the total amount of funds raised in this non-public offering will not exceed 4.8 million yuan. After deducting issuance expenses, all will be used for video content resource library construction projects, platform application technology research and development projects and brand marketing system construction projects. The pricing principle of the issue price is: the issue price shall not be less than 90% of the average price of the company's stock on the 20 trading days before the first day of the issue period, or the issue price shall not be less than 90% of the average price of the company's stock on the first day of the issue period. All issuers subscribe for the shares issued this time in cash.

In the non-public offering plan originally disclosed by the company, the total amount of funds raised from this non-public offering will not exceed 7.508.96 million yuan, and will all be used for the following projects after deducting issuance expenses:

Before the raised funds are in place, the company will invest in advance with self-raised funds based on the actual situation of the project progress. After the raised funds are in place, the self-raised funds that have been put into use before this issuance will be replaced in accordance with the company's relevant regulations on the use and management of raised funds. If the raised funds cannot meet the needs of the raised funds to invest in the project, the funding gap will be solved by the company itself. After the revision, the total amount of funds raised in this non-public offering will not exceed 4.8 million yuan. After deducting issuance expenses, all of them will be used for the following projects:

As of the date of issuance of this plan, Jia Yueting directly holds 42.18% of the equity of the company, and indirectly controls 0.64% of the equity of the company by holding 63% of the equity of LeEco Holdings, and controls 42.82% of the equity of the company in total. Assuming that the number of shares in this non-public offering is 155 million shares, after the completion of this issuance, Jia Yueting directly holds the equity of the company to38.93%, and indirectly controls the equity of the company to 0.59% by holding 63% of the equity of LeEco Holdings, controlling 39.52% of the equity of the company in total. Jia Yueting remains the controlling shareholder and actual controller of the company. This issuance will not result in changes in the company's control.

The adjusted plan shows that Le.com has canceled bank loan repayment and working capital replenishment projects, and reduced fundraising by 1.6 billion yuan. At the same time, the fundraising scale of the three fundraising projects has been reduced to varying degrees, with a total reduction of 1.109 billion yuan.

The announcement said that at present, competition among domestic mainstream video websites is becoming increasingly fierce and has entered an important stage of differentiated competition. In order to quickly expand high-quality content and improve customer experience, and achieve increased user number and user stickiness, the company's main competitors continue to obtain large amounts of funds needed for development through capital operations. In order to cope with the increasingly fierce competition in the industry, the company urgently needs to improve its capital strength, increase investment in the construction of the "LeEco Ecosystem", enhance the competitive strength of various business segments from platforms, content to terminals, applications, etc., and strive to promote the "LeEco Ecosystem" The full play of the synergy effect will further enhance product user experience and user stickiness, maximize brand value, and reward all shareholders of the company with excellent operating results.

This non-public offering raised funds investment project plans to continue to strengthen the reserves of video content resources, investment in platform and application technologies, brand marketing capabilities, and improve the company's cash flow situation through the construction of application platform technologies and marketing systems such as LeTV's Internet content, operations and advertising systems. Comprehensively optimize the load and interaction capabilities of each business unit of the existing one-cloud and multi-screen system, and ultimately form the company's entire industry chain media operation capabilities, releasing the value of the "LeEco Ecosystem" at a higher level, thereby enhancing the company's profitability.

In terms of investment in content resources in the future, the company will adopt a strategy of covering all-round content categories such as TV series, movies, variety shows, animation, and music, and combining external procurement and internal self-made creation to continuously consolidate and strengthen the company's dominant position in the content field. At the same time, we will increase investment in self-made content business, improve the quality of self-made content, continue to consolidate the company's market leading position and differentiated competitive strength in the construction of content libraries, and comprehensively enhance the company's ability to serve in terms of content categories, quality and derivative products.

[Original Announcement]

LeTV: Announcement on Adjusting the Plan for Non-public Offering of A-shares LeTV

: Feasibility Analysis Report on the Use of Funds Raised from this Non-public Offering of Shares (Revised Draft)

LeTV: Demonstration and Analysis Report on the Non-public Offering Plan (Revised Draft)

LeTV: Special Verification Opinions of Sino-German Securities Co., Ltd. on the Company's Adjustment of the 2015 Non-public Offering of A-shares

Editor: vian