Le.com will introduce a strategic investment of 10 billion yuan. Is it enough to solve the "urgent needs"?

on the evening of the 28th, Leeco announced that so far, Leeco together with Jia Yueting and Letv Holdings (Beijing) Co., Ltd. has signed a "Strategic Cooperation Framework Agreement" with strategic investors, and strategic investors have paid a certain amount of sincerity money. The transaction size of this major issue is expected to exceed 10 billion yuan, and the parties concerned still need further consultations to sign a formal cooperation agreement.

on the evening of the 28th, Leeco announced that so far, Leeco, together with Jia Yueting and Letv Holdings (Beijing) Co., Ltd., has signed a "Strategic Cooperation Framework Agreement" with strategic investors, and strategic investors have paid a certain amount of sincerity money. The transaction size of this major issue is expected to exceed 10 billion yuan, and the parties concerned still need further consultations to sign a formal cooperation agreement.

at this time, it is exactly 10 working days before Leeco's trading is suspended. On December 15, Leeco suspended its trading. According to the announcement at that time, the company was "planning to introduce strategic investors through non-public offerings of shares and other capital". According to the relevant regulations of the Shenzhen Stock Exchange, the company has applied for suspension. The suspension is expected to take no more than ten working days.

on the 28th, Leeco further disclosed the "strategic investment", saying that Jia Yueting had signed a "strategic cooperation framework agreement" with strategic investors, involving transactions expected to exceed 10 billion yuan. Due to the uncertainty of the relevant matters at present, in order to ensure the smooth progress of the matter, the company's shares continued to be suspended from trading on the morning of December 29, 2016, in principle for no more than ten trading days.

strong > if the financing goes smoothly, it may be able to meet Letv's "urgent needs" / strong >

as early as November, some media exposed that Letv owed tens of billions of yuan to suppliers. According to media reports, Letv owes suppliers on the scale of 10 billion yuan, including chip Fang Qualcomm, screen supplier Sharp, camera module provider Shunyu Optics, fingerprint touch module Xinli Semiconductor, acoustics module provider AAC Technology, mobile phone contract manufacturer Compal computer, TV contract manufacturer TCL and other companies.

although this was responded by Leeco as a "rumor", the shortage of capital chain was exposed by borrowing everywhere and collecting debts from suppliers.

according to Bloomberg, Letv Holdings' Letv Information Technology (Hong Kong) Co., Ltd. has just completed a loan of US $150 million (about 1.014 billion yuan) in October, and five banks are willing to provide money for the company. In November, Jia Yueting said on Weibo that "food comes first" and marked the location as "Hong Kong's landmark Hong Kong International Financial Centre", implying that financing is under way. Senior executives of many companies, including Hailan Group, Hengxing Group, Yihua Group, Minhua Holdings and so on, "donated money" to Leeco. Jia Yueting's classmates at Cheung Kong Business School invested a total of US $600 million in Letv, which was received in two installments.

on the other hand, the problem of arrears remains unresolved. The most recent supplier "door-to-door debt collection" was on December 12. Letv mobile phone repair supplier Tianjin Hongfurui Electronics Co., Ltd. said Letv had several outstanding debts, one of which was three months' wages owed to the company's employees. An estimated arrears of 2139256 yuan on December 9.

among the many sub-ecology of Letv, Letv Sports, which is relatively short of funds, has also been exposed with the problem of arrears in the past two days after experiencing the "downsizing storm". As Letv Sports owed 30 million of the royalties owed to Xinying Sports has not yet been paid, Letv must pay off the arrears in batches before the Spring Festival to avoid the situation where the live broadcast signal is cut off.

in other sub-ecology, Letv, who is mainly engaged in the TV business, makes the new capital healthier and is regarded as a reliable "growth point". During the new product launch held last week, Liang Jun, its president, told several media that the new round of financing was nearing completion and that some of the financing had been accounted for, but did not disclose more details, saying that everything had been announced. As for the amount of financing, Liang Jun only said that the valuation before this round of financing was 30 billion yuan, financing in accordance with this standard.

Edit: yvette