Leeco's performance has greatly changed: the half-year pre-loss exceeded 600 million yuan and lost for the first time in seven years.

what is shocking is that Leeco's performance has changed greatly for the first time, with a net profit loss of about 637-642 million yuan in the first half, which is Letv's first loss in the first half since going public in 2010, with a year-on-year increase of about-324%.

after Jia Yueting withdrew and Sun Hongbin took office, Leeco issued a performance forecast for the first half of 2017 on the evening of July 14. Shockingly, Leeco's performance changed greatly for the first time, with a net profit loss of about 637-642 million yuan in the first half, which was Letv's first first-half loss since he went public in 2010. The year-on-year growth rate is about-324%.

the financial report for the first half of the calendar year shows that the net profit from 2010 to the first half of 2016 was 31 million yuan, 58 million yuan, 91 million yuan, 117 million yuan, 150 million yuan, 255 million yuan and 284 million yuan respectively.

the company's net profit in the first quarter of 2017 was 125 million yuan, and Leeco's annual net profit in the 10 years from 2007 to 2016 was profitable, except for a 1.39% year-on-year drop in net profit in 2016. The year-on-year growth rate in the other nine years was more than 30%, with the largest increase in 2008, with an increase of 106%.

Leeco, which has made profits for many years, suddenly predicted huge losses. There are three main reasons given by Leeco: first, during the reporting period, 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. Second, 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. Third, during the reporting period, the scale of the impairment loss of the company's assets was 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.

what is noteworthy is that almost at the same time as Leeco's performance forecast for the first half of 2017, the 2016 annual report correction announcement, supplement or revision shows that the top five debtors of Leeco's accounts receivable are all from the Leeco department, including Letv Intelligent Terminal Technology Co., Ltd., Letv Mobile Intelligence, Letv e-commerce, Lepa marketing services, Letv Holdings, etc., the total accounts receivable is about 2.9 billion yuan. Provision for bad debts: 88.4439 million yuan Leeco's top five customers last year were all related parties, including Lepa Marketing Services, Letv Smart Terminal, Letv Mobile Intelligence, Beijing Oriental car Cloud, and Le Corporation Limited. Leeco's sales to the top five customers totaled about 9.8 billion yuan, accounting for 44.56 percent of the total annual sales. Leeco explained that this is due to the company's business model and development, is necessary.

announcement shows that the top five suppliers of Leeco are TPV Technology (Qingdao) Co., Ltd., Jiangsu Design Valley Technology Co., Ltd., TCL overseas Electronics (Huizhou) Co., Ltd., TPV display Technology (China) Co., Ltd., and Shenzhen Golden Ruixian Digital Technology Co., Ltd. Dongguan Branch, with a total purchase volume of about 9.8 billion yuan last year.

in addition, the announcement also revised "Letv Dabing is expected to increase the net profit of Leeco by hundreds of millions of yuan" to "it is expected to have a positive impact on the operating performance of Leeco". The income brought by games to Leeco has also reached the level of 100 million yuan to "the growth of game revenue will also have a positive impact on Leeco's business performance."

Edit: yvonne