LeTV.com, after 278 days of trading suspension, finally released a substantive announcement regarding its major restructuring. On January 19, the company decided to terminate the major asset reorganization and the change of its company name and abbreviation following a board review. Although the announcement did not specify when trading would resume, it became clear that there was no longer a valid reason to continue the suspension.
In the evening, LeTV issued another statement highlighting various risk warnings, including changes in the actual controller, unrecoverable receivables from related parties, tight cash flow, expired debt, declining performance, external investments, and guarantees.
This day had finally arrived.
Was there any sign of a solution?
At 6:50 am on December 31, 2017, Jia Yueting’s wife, Gan Wei, posted on Weibo: “On the last day of 2017, my mission will return. At the beginning of 2018, I have a long way to go… Good morning, Beijing.â€
On December 25, the Beijing Securities Regulatory Bureau ordered Jia Yueting to return to China before December 31, 2017, to fulfill his obligations as the company's actual controller and manage the company's risks while protecting investors' rights.
On January 7, Gan Wei shared on Weibo that she had resolved some debts through asset offsets and sales. For example, she repaid core assets of LeTV Mall worth 92.9 million yuan to LeTV’s subsidiary, and sold shares of Coolstock to repay China Merchants Bank with HK$807 million, achieving a repayment rate of nearly 60%. The next step was to communicate with the bank to unfreeze assets. It seemed that LeTV’s debt problem was approaching a resolution. However, China Merchants Bank, one of the counterparties, remained silent.
Although Jia Yueting could not return home in time, LeTV could no longer justify continuing the suspension.
On the first trading day of January 2018, LeTV was removed from the Shenzhen Composite Index, Shenzhen Stock Exchange Index, and GEM Index.
From its massive capital pursuit and rising market value to the crisis, business disintegration, and financial collapse, the LeTV ecosystem built by Jia Yueting followed a dramatic upward and then downward trajectory in just three years.
The crisis broke out on April 14, 2017, when LeTV suspended trading, citing the acquisition of LeTV Films. Soon after, the crisis unfolded — layoffs, financial difficulties, related-party transactions, and cash flow issues became the reality during the suspension period.
At a press conference on May 21, Jia Yueting still claimed that the LeTV ecosystem was promising and competitive, emphasizing that the seven sub-ecosystems were essential to its success.
Despite the ambitious plan, the LeTV system faced internal and external threats. When the crisis hit, the entire structure collapsed quickly.
According to Jia Yueting’s vision, LeTV included seven ecosystems: internet technology, content, large screen, mobile phones, automobiles, sports, and finance. Each had its own main carrier, but none delivered the expected results.
Reports later revealed that Sun Hongbin, who took over as chairman, struggled to manage the situation. The mobile phone division alone suffered losses of up to 9.2 billion yuan, adding pressure to an already fragile company.
On June 26, 2017, the crisis escalated when China Merchants Bank applied for property preservation, freezing LeTV’s assets and those of its executives, marking the open outbreak of the crisis.
Jia Yueting admitted at a shareholder meeting that banks had been withdrawing funds, forcing the sale of shares and even using operational funds to repay loans, leading to a severe liquidity crisis.
By July, LeTV’s shares were frozen, and the company faced mounting legal challenges. By December, Jia Yueting’s domestic assets were all seized, leaving little to be executed.
As the crisis deepened, institutional investors and fund managers began to withdraw, impacting retail investors significantly. Many found themselves unable to sell their shares, facing potential daily halts and uncertain futures.
With the restructuring failing, many feared that LeTV would become a ghost stock, with only price fluctuations determining its future. As one private equity fund manager noted, “It depends on what prospects LeTV has under Sun Hongbin — no stock is uninteresting, only prices may be.â€
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