I'm so stumped that in the past, LeTV Network, which had a lot of attention, ended up being delisted.

On the evening of May 14, the Shenzhen Stock Exchange issued two delisting announcements in a row, involving the former GEM leader LeTV Network (300104.SZ) and another GEM listed company, Jinya Technology (300028.SZ).

Shenzhen Stock Exchange's big decision: LeTV will stop listing!

On May 14, 2020, the Shenzhen Stock Exchange decided to terminate the listing of LeTV's shares.

According to the Shenzhen Stock Exchange announcement, the listing of LeTV's shares has been suspended since May 13, 2019 due to negative year-end net assets belonging to shareholders of listed companies as audited in 2018. On April 27, 2020, the “2019 Annual Report” disclosed by LeTV Network showed that the company's 2019 audited net profit attributable to shareholders of the listed company (hereinafter referred to as “net profit”), net profit after deducting non-recurring profit and loss, and net assets at the end of the period were all negative, and the financial and accounting report was issued by Dahua Certified Public Accountants (Special General Partnership) with reservations, touching on the Shenzhen Stock Exchange's “GEM Stock Listing Rules (Revised in November 2018)” section 13.4.1 (2) (3) (5) of the stock termination requirements shape.

According to the Shenzhen Stock Exchange, starting on the trading day after the expiration of 15 trading days (that is, June 5, 2020) after the firm's decision to terminate the listing of LeTV's shares, LeTV's stock trading has entered a delisting period. If LeTV makes a review application and the Shenzhen Stock Exchange Appeals Review Committee decides to uphold the termination of listing, LeTV's stock trading will enter the delisting period starting on the next trading day after the Shenzhen Stock Exchange Appeals Review Committee decides to uphold the termination of listing. On the trading day after the delisting period expires, the Shenzhen Stock Exchange delisted LeTV shares.

According to the reporter's estimate, if LeTV does not apply for a review, its shares will be officially delisted from the A-share market in late July. At that time, LeTV's shares will actually come to an end in the A-share market.

The current LeTV network is already “devastated” in terms of financial data.

According to public data, the company's annual revenue has fallen from a peak of 21.987 billion yuan (2016) to 499 million yuan in 2019, shrinking 97.73% in just 3 years. In terms of profit, since 2017, the company has been losing money continuously. The cumulative loss amount for the three years up to 2019 was about 29.3 billion yuan, close to 30 billion yuan.

After a sharp decline in business and continuous losses, the company's net assets had become negative. As of the end of the first quarter of this year, the company's shareholders' equity was about -15 billion yuan.

According to data, LeTV was listed on August 12, 2010, and has been on the market for close to 10 years now. At the beginning of the listing and for a while after listing, it was once full of popularity, and was once the “brother” of GEM. During the 2015 bull market, the company's market value exceeded 150 billion yuan. Today, the company's market capitalization is only 6.742 billion yuan. In just a few years, the market value has shrunk by more than 95%. It is foreseeable that once the company officially enters the delisting period, the stock price is likely to fall further, and the market value of the shares held by investors who still hold shares will shrink even more seriously at that time.

As of the end of the first quarter of 2020, the number of shareholders of LeTV Network was 288,800.

On the day it was decided to delist, LeTV Holdings and LeTV Network were still in disagreement

This morning, LeTV Holdings controlled by Jia Yueting and LeTV Network were torn apart again. LeTV Holdings said Jia Yueting was no longer the actual controller of LeTV Network.

The official WeChat account of “LeTV Ecosystem” owned by LeTV Holdings released a statement this morning, saying that it is concerned that at LeTV's 2019 annual performance briefing on May 12, 2020, Liu Yanfeng, chairman of LeTV and his company's relevant managers, contained serious misstatements and misleading information in the content and remarks made publicly, which not only had a huge negative impact on Jia Yueting's personal reputation, but also misleading investors.

Its specific statement is as follows:

1. Liu Yanfeng, chairman of LeTV Network, said that as of May 8, 2020, Mr. Jia Yueting is still the actual controller of the company.

In fact, Mr. Jia Yueting no longer actually controls LeTV Network. Since his resignation as chairman of LeTV in July 2017, Mr. Jia Yueting has ceased to hold any position on LeTV. Since then, with the departure of the directors, supervisors, and executives he nominated or appointed earlier, he has not nominated or appointed personnel; since then, Mr. Jia Yueting has not made any decisions or instructions on the operation and management of LeTV (including but not limited to official seal management, financial management, etc.), and no longer actually controls LeTV. Up to now, the people who actually control LeTV Network are the current directors, supervisors, and executives.

2. Wu Baoyu, director of LeTV Network, said that since 2018, there has been no progress in debt processing between LeTV Network and major shareholders and related parties.

This description seriously does not match the facts, nor does it match the information already disclosed by LeTV. Since September 2017, Mr. Jia Yueting has commissioned the LeTV Holdings Debt Processing Team to communicate with the then-management of LeTV Network several times, and has successively reached and implemented related debt repayment plans. For details, please refer to the “300104 LeTV Network Notice on Progress in Resolving Debt Issues with Unlisted Systems” and the “300104 LeTV Network Notice on Relevant Companies' Capital Settlement and Related Transactions” issued by LeTV on August 21, 2018.

3. Liu Yanfeng, chairman of LeTV Network, said that the amount guaranteed by Jia Yueting in LeTV's debt was about 9 billion yuan, and that Mr. Jia Yueting's current personal debt restructuring plan did not include 9 billion yuan in the LeTV Sports and LeTV Cloud guarantee cases.

Although according to current legal regulations, Mr. Jia Yueting's creditors did not include LeTV Network. However, Mr. Jia Yueting has never shied away from debt issues related to his and related parties' joint guarantees, joint debts, and related arrears between the LeTV holding system and LeTV Network, and has kept his promise of due diligence to the end. Therefore, the bankruptcy and restructuring plan considered and arranged the above issues, including the resolution of arrears related to LeTV Network.

Here, we specifically explain and clarify two points: 1. The amount guaranteed by Mr. Jia Yueting in LeTV's debt is about 3 billion yuan; 2. Mr. Jia Yueting's current personal debt restructuring plan already includes the debt in the LeTV Cloud Guarantee case and the associated debt of the LeTV Xingen M&A Fund.

Another GEM company, Jinya Technology, was also terminated, and 45,000 shareholders stepped on thunder

At the same time that the listing of LeTV Network was terminated, the listing of another GEM listed company, Jinya Technology, was also terminated.

According to the Shenzhen Stock Exchange's announcement, the listing of Jinya Technology shares has been suspended since May 13, 2019 due to negative audited net profit attributable to shareholders of listed companies for three consecutive fiscal years in 2016, 2017, and 2018. On April 28, 2020, the “2019 Annual Report” disclosed by Jinya Technology showed that the company's 2019 audited net profit and net profit after deducting non-recurring profit and loss were all negative, hitting section 13.4.1 of the Shenzhen Stock Exchange's “GEM Stock Listing Rules (Revised in November 2018)”

The situation where the stock listing specified in item (2) is terminated.

According to the provisions of section 13.4.1 and section 13.4.6 of the Shenzhen Stock Exchange's “GEM Stock Listing Rules (Revised in November 2018)” and the review opinion of the Shenzhen Stock Exchange Listing Committee, on May 14, 2020, the Shenzhen Stock Exchange decided to terminate the listing of Jinya Technology.

According to the Shenzhen Stock Exchange, starting on the trading day after the expiration of 15 trading days (that is, June 5, 2020) after the Shenzhen Stock Exchange made the decision to terminate the listing of Jinya Technology shares, Jinya Technology stock trading has entered a delisting period. If Jinya Technology submits a review application and the Shenzhen Stock Exchange Appeals Review Committee decides to uphold the termination of listing, Jinya Technology's stock trading will enter the delisting period starting on the next trading day after the Shenzhen Stock Exchange Appeals Review Committee decides to uphold the termination of listing. On the trading day after the delisting period expires, the Shenzhen Stock Exchange delisted Jinya Technology shares.

As of the end of the first quarter of this year, Jinya Technology still had 44,900 shareholders.