On April 9, at the first provisional shareholdersmeeting in 2019, whether the company will suspend its listing became a topic of concern to shareholders.
According to the announcement issued by Le Video Network, in 2018, the owners equity of the company is expected to be negative. The companys shares will be suspended if the net assets of the returned parent are negative in 2018 after auditing, and there is a risk that the companys shares will be forced to terminate listing if the companys auditing report and annual report in 2019 are to meet the required conditions for resuming listing, according to Lexus.com.
Le Video Network Denies Being Tunneled
In December 2018, Lerong New came out of Lerong. Lerong New Valuation has become an important factor to determine whether the net assets of Lerong Network are negative or not. According to the previous performance reports issued by Le Rongxin, in 2018, Le Rongxin was evaluated twice for the reasons of introducing investors and some shares being executed by judicial auction. If Le Rongxins new valuation is estimated at 1.872 billion yuan, the net profit of Le Rongxin belonging to shareholders of Listed Companies in 2018 is - 2.025 billion yuan, and the owners rights and interests of shareholders of listed companies are - 1.04 billion yuan, for example. The new valuation of Rongzhong is estimated at 5.766 billion yuan. In 2018, the net profit and owners equity attributed to the shareholders of listed companies are - 608 million yuan and 377 million yuan, respectively.
On April 8, Le Rongzhong issued a risk alert announcement that according to the current assessment work of Le Rongzhong New Assets and the progress of company audit in 2018, it is expected that the new assessment results of Le Rongzhong New Assets will be less than 3.5 billion yuan, and the assessment results of intangible assets such as copyright of listed companies will be less than 1 billion yuan (and the provision for impairment of intangible assets such as copyright will exceed 1.5 billion yuan). In 2018, Le Ro The owners equity is expected to be negative.
At the shareholdersmeeting, some investors asked about Lerongs new valuation and the companys delisting progress. Lerong Director Baibing responded that Lerongs new valuation method, evaluation model and final evaluation results need to be finalized by the final evaluation report. At that time, the company will disclose the relevant content in time.
If the companys annual report in 2018 reflects a negative net asset, or if the audit report continuously publishes aunable to express opinionsand so on, which conforms to the conditions of suspension of listing of China Securities Regulatory Commission or the relevant rules of the Exchange, the Exchange has the right to suspend listing of Lexus. According to the Listing Rules of the Exchange, if Lexus meets the withdrawal criteria after one year or longer. Standard, Le Video Network will probably be delisted by the exchange, but now there is no clear timetable. It is uncertain whether delisting will happen or not, but we have been reminding investors to pay attention to risk. White Bing said so.
At the shareholdersmeeting, investors also questioned whether the new listing of Lerongzhi existed in the case of Lerongzhi tunneling listed companies. In response, Le Video Network Director Mi Baibing said that Rong Chuang is the second largest shareholder of Le Video Network, and all transactions between investors and Le Video Network have been considered and disclosed in accordance with relevant regulations. In 2018, Le Video Network predicted that net assets and net returns to home within the scope of the merger were negative, mainly because of the large impairment of related party receivables since 2017, the sharp shrinkage of income caused by the loss of cash flow, and the impairment of copyright assets, etc. There was no case of financing and creating a hollowed Le Video Network.
Debt-free restructuring plan?
If the suspension of listing, Le Video Network will face the problem of whether to resume listing. Regarding the business plan for 2019, Zhang Wei, general manager of Le Video Network, said that it would continue to maintain the operation of listed companies on the basis of the current business of listed companies. At present, the main business of Le Video Network includes membership business, advertising business, copyright sales business, etc. ?
It is noteworthy that, at present, there is still no substantial progress in the debt problem of Le Video Network.
Zhang Wei said: As of December 31, 2018, the total amount of unaudited debts in the merger scope of listed companies is about 12 billion yuan, still facing maturity debts can not be repaid, the debt problems of controlling shareholders and related parties have not been substantially solved, and the pressure of debt repayment has not been eased at present.
Regarding whether Rongchuang will inject capital into Lexinet, Zhang Wei responded to the reporter of Securities Daily: At present, listed companies have no definite plan to implement debt restructuring.
As for the companys debt with Jia Yueting and its affiliates, Zhang Wei said that Lexinet has been negotiating with controlling shareholders and their affiliates to deal with debt solutions, actively advocating the claims of listed companies. At present, the debt processing group has not come up with a complete solution that can be implemented in substance, has not given a plan to solve the debt problem with the listed companies, and the listed companies have not received any cash.
Regarding Le TV Networks request that Jia Yueting pay off his debt with FF equity, Zhang Wei responded to the reporter of Securities Daily that the issue of repaying debt with FF equity involves the issue of Chinese and foreign equity, which is still in the stage of discussion and has not yet landed a substantive plan.
We have been negotiating debt solutions with major shareholders and stakeholders. The company has never given up requiring major shareholders to pay their debts in cash and FF equity, which is our attitude. Bai Bing added.
On the evening of April 9, Le Video released its first quarter performance forecast for 2019. The company expects to lose 194 million to 199 million yuan in net profit attributable to shareholders of listed companies. In the first quarter of 2019, owing to the influence of related partys arrears on the companys overall capital, the companys brand and reputation continued to be damaged. In the short term, it failed to reverse the business situation of the companys business lines in a timely manner. The companys advertising revenue, membership and distribution revenue scale did not increase compared with the same period last year.
Source: Liable Editor of Securities Daily: Yao Liwei_NT6056