LeTV's copyright arrears of 1.2 billion yuan, Huace Film and Television is its largest creditor

Leeco's creditors include listed companies such as Huatze Film and Television, Jiaxing Media, among which Huatze Film and Television is the biggest creditor. In this regard, the person in charge of Huatze Film and Television said that the company is confident of forming an overall solution for Letv's arrears in the third quarter of this year. Letv's arrears to the company will not have a significant impact on the company now or in the future.

original title: Leeco owes 1.255 billion yuan for copyright. Huatze Film and Television said it was considering taking back the resale

as the "Letv incident" continued to ferment, Leeco's "creditors" began to be affected. On July 14, Leeco released its updated 2016 annual report. According to the financial report, the amount of copyright payable by Leeco was 1.255 billion yuan last year.

it is understood that Leeco's creditors include listed companies such as Huatze Film and Television, Jiaxing Media, among which Huatze Film and Television is the biggest creditor. In this regard, the person in charge of Huatze Film and Television said in an interview with reporters that the company is confident of forming an overall solution for Letv's arrears in the third quarter of this year. Letv's arrears to the company will not have a significant impact on the company now or in the future.

< strong > copyright arrears total 1.255 billion yuan < / strong >

from the latest financial report data, as of the end of 2016, Leeco's accounts payable were 5.421 billion yuan, of which 4.166 billion yuan were payable and 1.255 billion yuan were payable.

according to Letv Film insiders, almost all of the above debts have not been repaid. According to Leeco's quarterly report in 2017, the company's liabilities totaled 18.786 billion yuan, including current liabilities of 11.629 billion yuan and non-current liabilities of 7.157 billion yuan.

Industry insiders believe that, judging from the current situation, Leeco's cash flow is tight, especially in the context of a sharp decline in performance in 2017 and frequent personnel changes, it is unlikely that the money will be repaid in the short term.

according to Leeco's semi-annual report in 2017, Leeco expects a net profit loss of 637 million yuan to 642 million yuan, compared with a profit of 284 million yuan in the same period last year.

Leeco said that during the reporting period, the performance declined for three reasons: due to the characteristics of the company's industry, the current operating costs such as copyright amortization, CDN and labor costs did not decline, but due to the tight liquidity of Letv system and the impact on the company's brand, customer stickiness fluctuated. The company's advertising revenue, terminal revenue and member income have all declined significantly. In order to adhere to the exclusive broadcast strategy of high-quality content, the company did not conduct copyright distribution business in the second quarter, resulting in a sharp decline in copyright distribution revenue in the same period; the amount of impairment loss on the company's assets is about 230 million yuan, including 130 million yuan for copyright impairment of intangible assets, 2 million yuan for inventory decline, and 98 million yuan for bad debts of accounts receivable.

since the 2017 semiannual report has not yet been disclosed, the details of this year's arrears are not clear. However, the reporter learned from the above insiders that the amount owed will not be less than that of last year.

< strong > Huatze Film and Television says it is considering taking back the resale < / strong >

on the other hand, from the disclosure of information by other listed companies, it can be found that there are not a few "creditors" of Letv. Huatze Film and Television, Jiaxing Media, contemporary Mingcheng, Helichenguang, Qingyu Media and other companies are all "creditors" of Leeco. Among them, the biggest "creditor" is Huatze Film and Television.

according to a record sheet of investor relations activities recently disclosed by Huatze Pictures and Television, the balance of accounts receivable from LeTV is about 340 million yuan, of which 98% are with a period of less than one year.

according to Huatze Film and Television, the above 340 million yuan of accounts receivable is mainly divided into two parts. One is the copyright of "self-admiration" sold by the company to Letv, which is worth no more than 200 million yuan. The rest is mainly the copyright of several online unbroadcast works sold by the company to Letv.

according to Huatze Film and Television's 2016 annual report, the TV series "unrequited self-admiration" was its highest-paid film and television production last year, and the company earned a total of 439 million yuan from the show, accounting for 9.9 percent of the main business revenue.

however, it is worth noting that Huatze Film and Television stressed that the company is discussing to take back the copyright sold to Letv. "the company is confident that an overall solution to Letv's arrears will be formed in the third quarter of this year. Letv's arrears to the company will not have a significant impact on the company now or in the future."

some brokerage analysts believe that according to the latest accounting estimates of accounts receivable of the company, for movies and TV dramas jointly invested and distributed by the company, if it is agreed in accordance with the relevant agreement that the company shall pay a share to the joint investor according to the actual amount of rebate, the provision for bad debts shall be made according to the proportion of the company's investment or income. In other words, the company actually undertakes no more than 100 million yuan in the final payment of "self-admiration". Even if it is assumed that it cannot be recovered in the current year, according to the latest provision ratio, the impact on full-year profits is very limited.

except for "narcissism", the remaining receivables are mainly TV dramas that were previously sold to Leeco but have not been broadcast yet. Another brokerage analyst believes that as these TV dramas have not yet been broadcast, if the company reprocesses these projects, resale will not adversely affect the company's performance.

Edit: xiongwei