LeEco's account book: 100 million yuan to be repaid to suppliers, LeEco's 1 billion yuan private placement bond matures today

The suppliers who have been working at the downstairs of LeTV Building for months are finally going home.

On September 18, LeEco Holdings and more than 50 suppliers of LeEco Mobile reached a settlement, resolving debts of more than 100 million yuan. The suppliers even sent a collectively signed thank-you letter to LeEco - Mr. Jia is a responsible person, and he still persisted, worked hard, and fulfilled his promise to us under such difficult circumstances. However, this settlement was just a promise. When the suppliers were asked whether the debts had been received, they did not say much.

As for the listed system, it will also face repayment pressure. LeTV issued private bonds 15 LeTV 02 (118370.SZ) with an interest rate of 7.5% in September 2015, with a total amount of 930 million yuan, which will face a call back on September 25.

LeTV needs to repay 2 billion yuan of private placement debt in August and September

In August and September 2015, LeTV completed the fundraising of two private placement bonds, "15 LeTV 01" and "15 LeTV 02". The so-called private placement bonds are corporate bonds issued and transferred by small and medium-sized enterprises in China in a non-public manner, and are scheduled to be repaid with interest within a certain period of time.

The first phase of LeTV's two private bonds has an issuance scale of 1 billion yuan, and the second phase has an issuance scale of 930 million yuan, with coupon rates of 8.5% and 7.5% respectively, and a term of 3 years. However, investors have the option to sell back at the end of the second year. Under the current situation, selling back this year may be the common choice of investors.

The private placement bond that matured in August has already shown that investors have exercised their put options. In August, LeTV insiders said that the funds for the put back of the "15 LeTV 01" private placement bond had been raised and transferred to the special account of "China Bond Depository and Clearing Corporation Limited". It will be paid to investors who chose to put back on August 3 as scheduled.

By September, the second phase of private placement bonds will also face a sell-back. According to the agreement, September 23, 2018 is the redemption date for this phase of bonds. If the bondholders exercise the sell-back option, the redemption date of the sold-back bonds will be September 23, 2017 (if it is a statutory holiday or rest day, it will be postponed to the first trading day thereafter). According to the announcement released by LeTV at the time, there were actually 4 investors who subscribed to this phase of bonds, but the specific investors were not disclosed.

This also means that September 25 is the repayment date for the second phase of private bonds. Before the first phase of private bonds was sold back, LeEco said that the company had already been advancing the relevant work of the second phase of corporate bonds and would use its own funds to solve it. According to Caixin, Sun Hongbin will first repay the two exchange private bonds. However, LeEco's remaining own funds are becoming increasingly limited.

LeTV's own capital is less than 3 billion

According to LeTV's financial report data in the first half of this year, as of March 31, 2017, the company's debt balance was 18.786 billion yuan, of which the short-term loan balance was 2.178 billion yuan, the long-term loan balance was 3.013 billion yuan, and the non-current liabilities due in one year were 1.98 billion yuan.

In the second quarter, the company's liabilities and non-current liabilities due within one year increased again. As of June 30, 2017, the company's liabilities balance was 19.351 billion yuan, of which current assets and liabilities were 12.58 billion yuan. Among the current assets and liabilities, the balance of short-term loans was 2.111 billion yuan, accounts payable was 5.84 billion yuan, and non-current liabilities due within one year were 2.359 billion yuan.

In the second quarter, LeTV's current assets were 17.905 billion yuan, but the funds on its books were decreasing. In the first quarter, the cash and cash equivalents were 3.658 billion yuan, and by the end of the second quarter, the cash and cash equivalents of LeTV had decreased to 2.982 billion yuan, which was obviously insufficient to support short-term loans and non-current liabilities due within one year. According to LeTV's statement that it would use its own funds to solve the private debt, the total amount of cash and cash equivalents of LeTV will further decrease in the third quarter.

Jia Yueting and Jia Yuefang took back their loans during a period of financial constraints

From the perspective of liabilities, the company's liabilities and non-current liabilities due within one year increased again, but other non-current liabilities generated by Jia Yueting and Jia Yuefang's loans decreased. According to LeTV's 2016 semi-annual report, Jia Yueting's loan balance to LeTV was 2.071 billion yuan, and the balance at the end of the period was 2.5 billion yuan. Jia Yuefang's loan to LeTV did not change during the reporting period, and remained at 1.402 billion yuan.

But by the end of 2016, Jia Yueting's loan balance at the end of the period had become 2.6 million yuan, and Jia Yuefang's loan balance at the end of the period had become 434 million yuan. By the end of the first half of 2017, both Jia Yueting's and Jia Yuefang's loans had become 0 yuan.

This is also the reason why the Shenzhen Stock Exchange recently sent an inquiry letter to LeTV, asking Jia Yueting to fulfill his commitments to the listed company. In June 2015, LeTV announced that the company would sign a "loan agreement" with Jia Yueting for the first loan, with a loan amount of no less than 2.5 billion yuan and a loan term of no less than ten years (120 months), interest-free, to supplement the company's operating capital.

After the loan expires, the company will have the right to decide whether to renew or repay the loan based on its own operating conditions. The related transactions involved must also be reviewed by the board of directors and shareholders. At that time, Jia Yueting will avoid voting on the corresponding related transactions. If the funds are renewed, there will still be no interest. Prior to this, LeTV had also stated that Jia Yueting would lend nearly 8 billion yuan of funds to LeTV.com without interest.

However, according to this year's semi-annual report, Jia Yueting has not lent the reduced holdings to the listed company without interest in the first half of this year. Yesterday evening, LeTV released the "2017 Semi-annual Tracking Report of LeTV Information Technology (Beijing) Co., Ltd. by Sino-German Securities Co., Ltd." The report shows that from 2015 to date, the maximum amount of funds lent by Jia Yueting to the listed company from the reduction of holdings is 4.716 billion yuan, and the cumulative amount is 11.34 billion yuan. However, in the first half of 2017, when the company was short of funds, Jia Yueting did not continue to lend the reduced holdings to the listed company as promised before.

What assets does Jia Yueting still have in LeTV?

All the shares are still within the lock-up period and have been frozen and the legal person has been changed. In addition, no loans have been provided to the listed company, which means that Jia Yueting's connection with the listed company system is getting weaker and weaker, and the same is true for the non-listed system. The non-listed system is gradually separating from the LeEco system, either by transfer or reorganization.

On September 18, Bingqiong Interactive Entertainment announced the acquisition of LeTV Games. According to industrial and commercial information, LeTV Games was established in April 2015, with LeTV Investment Management (Beijing) Co., Ltd. as the legal shareholder and LeTV Zhixin as the legal shareholder of LeTV Investment. However, LeTV Zhixin responded that LeTV Games does not belong to the listed system, but is a LeTV investment company. From LeTV's 2017 semi-annual report, its consolidated financial statements include 14 subsidiaries, LeTV (Tianjin), LeTV (Hong Kong), LeTV (Shanghai), LeTV Streaming Media, LeTV Zhixin, LeTV Culture, LeTV New Media, Huaer Film and Television, LeTV Cloud, LeTV New Generation Culture, LeTV Wealth, Lexiang Holdings, Chongqing LeTV Microfinance and LeTV Original.

LeTV Sports is also facing restructuring, and the major shareholder may change. According to the current information of the Industrial and Commercial Information System, LeLe Interactive Sports Culture Development (Beijing) Co., Ltd. holds 30.66% of the shares and is the largest shareholder. The legal shareholder of LeLe Interactive is Beijing Baile Culture Media Co., Ltd., which holds 100% of the shares. The legal representative of the company is Jia Yueting.

Earlier, in July, Taoyuan Capital announced that it had achieved a controlling stake in Yidao. Recently, LeEco once again used Yidao shares to repay debts, transferring 0.32% of its shares to repay the 17 million yuan owed to Shuobei.

LeEco's semi-annual report this year shows that LeEco Finance will be included in LeEco's listing system. Yesterday evening, the official plan was finalized, and LeEco announced that it plans to acquire 100% of the equity of LeEco Investment, the parent company of LeEco Finance, for no more than 3 billion yuan. LeEco said that by completing this acquisition, while injecting high-quality assets into the listing system, it will solve the problem of accounts receivable between the listed company and its related parties by using debt-equity swaps. LeEco Investment's non-financial assets or businesses will be separated from LeEco Investment in the future.

In addition, the non-listed system still has several major businesses, including LeEco Mobile, LeEco Auto, and Coolpad, all of which are in a heavy debt crisis. Jia Yueting no longer has many cards to play, and he is facing a huge debt crisis in the non-listed system.

According to a recent report by Securities Daily, since the end of last year, Jia Yueting and the LeEco companies he controls have repaid nearly 20 billion yuan in debt, of which 16 billion yuan is owed to financial institutions and more than 3 billion yuan is owed to LeEco supply chain and suppliers. In addition to the debts, Jia Yueting also has LeEco Auto, which requires huge investment.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.