Original title: Direct attack on LeTV on the eve of delisting: Employees say bluntly that the company is about to go viral LeTV Video has only a few maintainers Source: Phoenix News Finance
Produced by Phoenix News Finance “No. 4 Qiyang Road” | Jiang Zhishu, Zhu Liu
On Monday (July 20), Beijing timeLeTV retreatedThe last trading day ushered in. The stock price was 0.18 yuan/share, and the transaction was 21.56 million yuan. It will be officially delisted tomorrow.
Earlier, LeTV Network issued an announcement stating that the listing of the company's shares has been terminated by the Shenzhen Stock Exchange. The company's shares entered the delisting period on June 5, 2020, and the company's shares will be delisted after 30 trading days during the delisting period. As of July 17, 2020 (including the same day), it has been trading for 29 trading days. There is 1 trading day left. The company's shares will not be re-listed after being delisted.
Note: LeTV Network's announcement on the company's stock entering the delisting period
Today, the once unrivaled “GEM No. 1 Stock” has come to an end sadly; the dream of ten years, from listing to market capitalization exceeding 100 billion dollars and becoming “the largest market value of GEM”, from Jia Yueting's launch of a holdings reduction plan to Sun Hongbin's investment of 15 billion dollars to the end, and finally Jia Yueting's departure from the US became a mystery. LeTV Network has been mired in losses in recent years, to the point where it was “impossible to write”. Finally, it was announced that it was delisted by the Shenzhen Stock Exchange on May 14.
The 20th was the last day of LeTV's A-shares. At around 10 a.m., Phoenix News Finance drove to Lenong Building, located at No. 105 Yaojiayuan Road, Chaoyang District. At that time, the outdoor temperature in Beijing was as high as 37 degrees, and few employees were allowed to enter the building under the scorching sun. The security guard at the entrance told the reporter that they needed to show their employee card or be brought in by a company employee to enter the building.
By noon, the quiet Le Rong building started to get angry, and several employees went out to pick up meals one after another; after Phoenix News Finance indicated their interest to a LeTV network employee, the employee told the reporter that the department's work is progressing normally at present. “I don't feel affected by this incident (delisting), there is nothing abnormal”; however, when the reporter inquired further about the specific department, the aforementioned LeTV staff left in a hurry, citing “inconvenient disclosure.”
Photo: Few employees enter or leave Le Rong Building, located at No. 105 Yaojiayuan Road
According to public information, Le Rong Building was originally called Hongcheng Xintai Building. In 2014, Jia Yueting bought this building as the headquarters building and changed its name to “LeTV Building”; at the end of 2016, there was a crisis in the LeTV capital chain. Since then, LeTV Building has continued to be used as a financing tool in exchange for capital, and later it has been pledged to Le Rong Zhixin, one of the core assets of LeTV Holdings, and changed its name again in July 2018 to the “Le Rong Building” brand. At the time, the market viewed this move as Sun Hongbin's “going to LeTV and going to Jia Yueting” after Sun Hongbin's entry into the main part of Le Rong's new career.
It is worth noting that since the crisis, LeTV Network has lost a lot of employees; according to the company's 2019 annual report data, the number of active employees of LeTV Network was 247, mostly technical personnel; in 2016, the number of employees of LeTV Network reached 5,389, a decrease of more than 10 times in just four years.
Figure: Number of employees disclosed in LeTV's 2019 annual report
When talking about the movement of people, an employee of the outsourcing team of LeTV Network in charge of testing the business bluntly stated to the reporter that “the company is almost out of business”; according to him, with a total of 17 floors, there is only one LeTV company, while LeTV Video is located on the 15th floor of the Le Rong Building, and only a few employees are maintaining it. “There are only a few people, and no one else is there.” The aforementioned employee told Phoenix News Finance that they currently work on the 10th floor, and the entire floor outsourcing team and LeTV employees combined have about 100 people. “There should be no impact if the company is delisted.” The aforementioned employee laughed, “I don't know the difference between delisting and listing.”
What is significant is that the outside world's impression of LeTV Network, in addition to the “Jia Yueting returns home next week,” there is also the phenomenon of shareholder rights protection that was not uncommon in previous years; in past media reports, the front of this building located near Chaoyang Park was often bustling, gathering Chinese suppliers, investors, and even celebrities. “In 2017-2018, many people went downstairs to defend their rights; in 2019, there were none.” The aforementioned outsourced employee told Phoenix News Finance, “We have long been accustomed to this phenomenon. Buying (LeTV) stocks is inherently risky.”