LeTV's resumption of trading today increased by more than 8%, but the 16.8 billion yuan in life-saving money was a "thorn rose"

Leeco shares resumed trading on the 16th. As of 10:15, the highest rise was more than 8%, then fell slightly. Leeco shares are now up to 37.55 yuan, up 4.89%. But today, A shares continued to fall, with the Prev and Shenzhen Index down nearly 1%.

Leeco shares resumed trading on the 16th. As of 10:15, the highest increase was more than 8%, and then fell slightly. At present, Leeco shares rose to 37.55 yuan, up 4.89%. But today, A shares continued to fall, with the Prev and Shenzhen Index down nearly 1%.

Fuchuang China opened low this morning, down 8.8% at HK $6.65, with 2.56 million shares traded before the day, with a turnover of HK $17.05 million, which is currently down 6.17%, while Coolpad Group opened 10.5% higher and is now up 3.49%.

Leeco applied for suspension of trading on December 7, 2016 due to planning major issues, integration of industrial resources and other factors.

"Survival is not Letv's gene, and companies that the board of directors make decisions will not become subversive companies." Jia Yueting, founder of Letv, made the above statement in an exclusive interview with the media after admitting that Letv had a financial crisis on November 6, 2016.

on January 13th, Leeco announced that Leeco and related main companies have received 16.8 billion yuan of strategic investment, including financing China.

Letv said that Financial Innovation China may provide a steady stream of funds for Letv and provide a strong guarantee for the sustainable development of the company.

the reporter found that the price of obtaining external financial support is that Sunac will be deeply involved in the operation and management of Letv. Leeco, Letv Zhixin, Letv Pictures, Letv Mobile, Letv Mobile and other Leeco company board of directors, supervisors, will appear in the figure. Financial innovation will become a force that cannot be ignored in Letv's future development decision-making.

Sun Hongbin revealed at the press conference that the price of the deal was all set by Jia Lao.

with regard to the price paid by Letv, Zeng Qiang, a partner of Xingen Capital, the former second largest shareholder of Leeco, said in an interview with reporters on January 15, "this is not a question of whether it is worth it, but to survive in order to achieve greater development." it's also an important financing from an economic point of view. "

< strong > Price 1: five seats on the board of Leeco can be nominated < / strong >

this time, Fuchuang China, which injects capital into Letv, is a comprehensive residential and commercial real estate development company listed on the Hong Kong Stock Exchange. Sun Hongbin, founder and chairman of the board, was born in Linqu County, Yuncheng City, Shanxi Province. Jia Yueting is a native of Linfen, Shanxi Province, 160 kilometers apart.

the fellow-townsman friendship between the founders has given Rongchuang a more dramatic sense of "providing timely help" in Letv. But in business, in Sun Hongbin's view, "I am a businessman, this is a deal."

"in the current situation of Letv, the conditions for financial innovation will certainly be very harsh because of the lack of bargaining chips." Shen Meng, executive director of Xiangsong Capital, said in an interview with a reporter from the Beijing News.

with the injection of financing capital into the Letv department, Sunac will send people to the boards of directors of some important companies in the Letv department.

under the realistic crisis, Jia Yueting has to make changes. Leeco's announcement reveals the price paid for obtaining financing investment. After the completion of the transaction, Sunac will have the right to nominate Leeco's directors, Leeco will set up a president, and the board of directors will add a new investment decision-making committee and management committee. In addition, Sunac will also participate in the corporate governance of Letv Zhixin and Letv Pictures by appointing directors.

on January 13, Hong Kong Stock financing China made a more detailed disclosure of the investment conditions in its announcement. Among Leeco's existing five-member board, Sunac China has the right to nominate one non-independent director and one independent director. Jia Yueting promised to vote in favor of the director nomination and urge Leeco's board to be composed of five directors.

according to Leeco's 2015 semi-annual report, Leeco's board members are Chairman Jia Yueting, Vice Chairman Han Fangming, Director Liu Hong, and two independent directors, Zhu Ning and Cao Bin.

"Rongchuang occupies two of the five board seats of Leeco and has a great influence on the company's decision-making. When he gave up his seat on the board of directors of the company, Jia Yueting's power was of course reduced and limited. " Yang Zhaoquan, director of Beijing Weinuo Law firm, told the Beijing News.

after the completion of the investment, Leeco's articles of association will also be amended to redefine the scope of major matters approved by the board of directors, and stipulate that major matters must be approved by more than 2% of the board of directors. These financing conditions mean that after Fuchuang invests in Letv, it will have two seats on the board of Leeco and have the right of veto over the operation and management of Leeco.

the industry believes that this will check and balance Jia Yueting's power. Previously, Zeng Qiang said in an interview with the Beijing News that the internal governance of Letv should be able to check and balance with the company's main decision-makers.

"2/3 of the voting rights means that Sunac can basically veto all related party transactions that are disadvantageous to listed companies. In the future, Leeco's allocation of funds to other sectors may be vetoed by Fuchuang. This is a very important clause for Sunac to protect its own interests." On January 15, a senior financial personage, who spoke on condition of anonymity, said to a reporter of the Beijing News.

in addition, Sunac China also said in its announcement that Leeco's board of directors must set up a subordinate committee, the Investment decision Committee and the Management Committee, and each nominate one member.

Yang Zhaoquan told the Beijing News that the large-scale investment of financing is not only a timely help to Letv, but also a good consideration and discount for itself.

< strong > Price 2: Sunac can assign financial managers to Letv's three companies. < / strong >

the problem of Letv's inter-plate fund borrowing, which has been questioned by the outside world, has also been noticed by Fuchuang. As a condition of investment, Sunac requires that in the management of Letv, Letv Zhixin and Letv Pictures, Sunchuang has the right to assign a financial manager.

the above-mentioned financial people believe that the biggest capital hole in Letv's system is Letv Mobile. Before that, some manufacturers are already suing Letv Mobile, which may lead to the freezing of Letv Mobile's funds. Now, if we move funds from other systems to save Letv Mobile, it may affect other units of Letv's system.

"in terms of investing in LeTV, Letv Zhixin, and Letv Film, Sunac does not want the company funds it invests to be used. Sunac nominates a financial manager to all three companies to supervise the capital flow of the mobile phone system. This may be the main reason for appointing financial managers." The above-mentioned person said.

earlier, Zeng Qiang told the Beijing News that in terms of system, the money of Letv's major sectors cannot be exchanged, nor can they be said to be borrowed and borrowed, because the shareholders of each sector are different.

according to Letv's announcement, after investing in Letv's innovation, Jia Yueting promised and facilitated the target company and related parties to complete the restructuring of the equity held by Letv to Singapore Central African listed companies into the listed company by September 30, 2020.

at present, in addition to Leeco's 40.31% stake in Letv Zhixin, Letv Holdings and Xinle assets hold 18.38% and 1.98% of the company, respectively.

the above financial personage explained that this means that the convergence of interests of Leeco and Letv Zhixin is very important in the future. through these provisions, we can see that Sunac hopes that Leeco will continue to move forward in accordance with the established direction. Do not want the funds to be used in the unlisted Letv ecology, which will lead to a great separation between the Letv listed system and the non-listed system in the future.

Shen Meng believes that the fact that Sunac has set such harsh conditions is, on the one hand, to deeply intervene in Letv to protect its own investment and supervise the use of funds. On the other hand, we do not rule out the possibility that there is a real debt in the investment of Fuchuang, so it is more necessary to take care of the flow of its own huge amount of funds. "after all, there is a lot of uncertainty in Letv's development, and it is far away from the main business of the real estate industry." Shen Meng said.

Sunchuang, under Sun Hongbin, continues to rescue companies in crisis, but from past experience, Sun Hongbin still gives priority to the interests of the company.

for example, in January 2015, Sunac reached an agreement with Kaisa to take over 49.25% of Kaisa's stake held by the Guo family. Four months later, Sunac terminated its equity acquisition of Kaisa. During this period, Sun Hongbin concluded at a press conference held in Hong Kong: "No matter how big a deal is, it is only a sale, and it will not put the company at risk for a single deal."

< strong > Price 3: valuation concession Letv reduces the new valuation by 6 billion < / strong >

Sun Hongbin revealed at the press conference that the transaction "the prices are all set by Lao Jia."

Letv also made concessions on corporate valuation. According to the investment funds and shareholding ratio of financing China, Leeco is valued at about 70.16 billion, Letv at 23.73 billion and Letv Pictures at about 7 billion yuan.

Leeco implemented a fixed increase of about 4.8 billion in August 2016, with a share price of about 45 yuan. Even based on the average price of Leeco for 90 days before the suspension, it is about 42.69 yuan. The purchase price is about Rmb35.40 per share, based on the 8.6 per cent stake held by Sunac China 6.041 billion. This price is basically the same as the current Leeco's pre-suspension price. Therefore, Leeco's valuation has not changed much.

for Letv Pictures, Letv disclosed plans to inject Letv into the listed company Letv in May 2016, with a transaction valuation of 9.8 billion yuan. As a result of this investment, Letv Film's valuation has shrunk by 2.8 billion yuan. At Letv's "Open Eco" press conference on December 20 last year, Letv told the new president Liang Jun that Letv had a pre-investment valuation of more than 30 billion, while the valuation of Fuchuang shares was nearly 6 billion yuan less.

therefore, ignoring the valuation changes of Letv, Letv Pictures and Letv give a total of about 8.8 billion yuan.

on January 15, Zhang Zhao, CEO of Letv Pictures, said at an investor exchange meeting that there was an inflection point in the entire film industry in 2016. The value of the whole industry declined. When the industry was in low tide, the company's valuation could not be separated from the valuation of the industry. Letv Pictures' valuation should also be lowered. However, Letv Pictures does not feel that its value has fallen, and it is still far higher than the average value of the industry. This will appear later, and there is no need to ask for the 01:15 price.

Zhang Zhao said that the current valuation of Sun Hongbin's investment in the music and TV industry is the price of round C of Letv Film. Letv Film must be promoted to inject into listed companies in 2017, saying it is ready to fulfill its commitment to Leeco investors.

while Letv, Letv Pictures and Letv Zhixin are the companies in Letv's major ecological sectors with good revenue and no capital crisis. Leeco reported revenue of about 16.795 billion yuan in the third quarter of 2016, an increase of 100.54% over the same period last year, and a net profit of 493 million yuan, an increase of 30.75% over the same period last year.

Letv Pictures has deducted 136 million yuan from non-net profit in 2015. In the restructuring plan in May last year, Letv Pictures pledged a profit of no less than 520 million yuan in 2016, 730 million yuan in 2017 and 1.04 billion yuan in 2018 for a valuation of nearly 10 billion yuan.

Letv Zhixin is a holding subsidiary of Leeco, which carries the large screen ecological business of Leeco. Leeco disclosed that since the launch of Super TV, the number of Letv's large screen users has exceeded 10 million by the end of 2016.

although Letv Zhixin has not made a profit since its establishment, its business situation is improving. Letv made 8.693 billion yuan in new business in 2015, with a net profit of-731 million yuan. In the first half of 2016, Letv made a new revenue of 7.64 billion yuan and a loss of 56.87 million yuan. Letv to the new president Liang Jun said in December last year that Letv set a new non-hardware big screen operating income target of 20 billion yuan from 2017 to 2019 and turn losses into profits in 2017.

after financing and investment, the new shares of Letv held by Leeco decreased from 44.79% to 40.31%. As a subsidiary company, Leeco has been dealing with Letv's new losses with minority shareholders' profits and losses in its financial statements. A financial source told the Beijing News that as long as the control or joint control requirements are met, Leeco can still handle Letv's new profits according to minority shareholder profit and loss accounting, but it needs to be recalculated according to the latest shareholding structure.

according to the Rongchuang announcement, Leeco, Letv Zhixin and Letv Pictures will all be included in the ranks of associated companies after they have acquired shares. Sunac also requires Leeco to start reporting the restructuring of shares held by Letv to new unlisted companies into listed companies by the end of 2019 and complete the restructuring by the end of September 2020.

< strong > Price 4: Jia Yueting needs to redeem more than 6 billion of the pledged shares within one year < / strong >

. In order to control the risk, Chuang Chuang even requires Jia Yueting's pledged Leeco shares to be kept below 50%. After the outbreak of the capital crisis in Letv, Leeco's share price fell continuously, and the outside world once questioned that the stock pledged by Jia Yueting would face the risk of burst positions.

Fuchuang requires that Jia Yueting reduce the pledge proportion of his Leeco shares to less than 50% within 12 months of the completion of the transaction, and the pledge proportion of shares held by listed companies in the future should be less than 50%.

according to Leeco's report in the third quarter of 2016, Jia Yueting pledged a total of 571 million Leeco shares, accounting for 83.6% of its shares. In this transaction, Jia Yueting transferred all his unpledged shares to Rongchuang, and the total number of Leeco shares decreased from 683 million to 512 million shares, all of which are pledged shares.

according to the promise, Jia Yueting is required to reduce the proportion of pledged shares to 256 million shares within one year, that is, to unpledge 315 million shares. According to the stock pledge rate of gem and the share price of Leeco, Jia Yueting needs to use 6.552 billion to 8.395 billion of the funds to redeem the pledged shares of Leeco. Fuchuang requires that the 15.041 billion yuan invested in Letv will be spent on listed companies and Letv ecosystem.

as to whether Fuchuang has any influence on Letv's future decision-making, Zeng Qiang thinks it will. "the effect is better and healthier. As far as Letv is concerned, after solving the problem of funds, what is more important is that Sun Hongbin has also broken the capital chain and suffered a lot of tribulations. For the control of cash flow and the rapid return of income, this kind of influence will be very good. "

"Fuchuang's sales-oriented and rapidly advancing management will bring about earth-shaking changes to Letv's entire corporate governance." Zeng Qiang said.

< strong > Yien is sorted out and released according to relevant reports of Beijing News and Sina Science and Technology. < / strong >

Edit: nancy