LETV shocked the huge loss of over 600 million! Where's the loss?

LETV music as a fusion of China Jia Yueting

21shijijingjibaodao· 2017-08-29 10:02:27

read: August 28th evening, LETV released fiscal 2017 first half earnings.

despite the previous performance will be a significant loss of notice, but LETV (300104.SZ) 2017 semi annual report released, still make the outside world quite shocked.

earnings report, whether it is operating income or attributable to shareholders of the parent company's net profit, LETV have declined sharply. Especially the latter, the loss amounted to 637 million yuan, down 323.91%.

source, twenty-first Century economic report (ID:jjbd21),

reporter, Wang Chuanhong Shouchun Rao

LETV online first half loss of over 600 million yuan!

Jia Yueting (information)

reported LETV revenue of 5 billion 579 million yuan in the first half of this year, and last year more than 10 billion yuan in revenue reduced by 44.56% compared to almost cut.

at the same time, LETV online loss of 637 million yuan for the same period last year, profit of 284 million yuan, attributable to shareholders of listed companies net profit dropped by 323.91%.

" will significantly reduce the revenue, depending on the music network says, is mainly because of the advertising business income, business income and payment service terminal decrease. In addition, due to the company in the two quarter of the basic foreign copyright distribution business, resulting in a substantial decline in copyright distribution revenue over the same period.

from the revenue share structure, music network from advertising revenue, terminal business and business income decreased most significantly, to 73.94%, 54% and 34.09%, respectively. Among them, advertising revenue from the same period last year accounted for 15.51%, down 7.34% this year.

what business is the biggest contribution to LETV losses? From music as the net company performance:

music as a result of new losses in the first half 282 million yuan,

music cloud about 80 million 300 thousand yuan loss.

for the outside world is concerned about the associated transaction issues, LETV said, the company is actively seeking solutions with related parties, and does not rule out the latter's high-quality assets into the listed company.

, which is worthy of attention is, LETV mentioned, currently the company is working with relevant parties to negotiate the LETV Investment Management (Beijing) Co., Ltd. (hereinafter referred to as "LETV investment") 100% equity issues, the main asset LETV investment at present, which is the music of financial business. The

report also revealed that SUNAC's Tianjin Jia Rui Huixin Enterprise Management Limited 1 billion 542 million yuan is still not paid to the new music, also made by the first half of this year as the new "other receivables balance" than the end of 2016 an increase of 218.31%. The reason why

is a sharp decline in performance,?

on LETV, since November last year, the capital chain predicament at the group level, a substantial decline in the performance report, has been in the market expected. Why did

's performance change so dramatically?

LETV explained:

1, due to the company's industry characteristics, the current copyright amortization, CDN and labor costs and other operating costs did not decline, and influenced by the music system of related party funds, coupled with the company's brand impact, with the customer stickiness fluctuate, the company's advertising revenue, income and income of members of the terminal there was a substantial decline.

2, in order to adhere to the quality of content independent broadcast strategy, in the two quarter for foreign copyright distribution business, this also led to a sharp decline in income over the same period,

3 has about $240 million in assets impairment loss provision. The problem of related party transactions

quite concerned about the outside world:

LETV semi annual report shows that the company accounts receivable amounted to 9 billion 542 million yuan, accounting for the proportion of the total assets of 26.70%; among them, from related party accounts receivable balance of 5 billion 241 million yuan, the total revenue receivable ratio was 51.85%. This amount increased by 1 billion 439 million yuan over the end of the year, LETV explained, because the reporting period, the existing business in normal development, there are still some related transactions involved.

however, LETV also said that in 2017 1-6 months, the related party accounts receivable repayment of 2 billion 826 million yuan, and Jia Yu on the above-mentioned accounts receivable to provide a guarantee.

in addition, LETV also said that at the end of the first half, the company bank deposits, frozen funds 29 million 70 thousand yuan, TCL multimedia holdings equity acquisitions 2 billion 151 million yuan deposit; factoring accounts receivable should be limited in the amount of 262 million yuan of recourse; available for sale equity value of 27 million 610 thousand yuan of financial assets have been is a long-term equity pledge; equity value of 11 million 34 thousand and 200 yuan of investment has been pledged.

financial record of China's capital injection, music as a new part of the money has not yet arrived,

another noteworthy detail is that the current financial record of China's capital injection, music as a new part of the money, has not yet arrived. LETV semi annual disclosure, mainly due to the company's first half of the balance of other receivables increased by 218.31% compared with the end of 2016, was introduced as the new investors in Tianjin Jia Rui Huixin Enterprise Management Co., increase investment of approximately 1 billion 542 million yuan in accounts receivable.

music as the financial injection of debt,

LETV as the future will be how to develop?

removal of performance itself, LETV latest semi annual report also mentioned the current speculation, difficult to determine the injection of financial assets.

LETV: at the end of 2017 will recover accounts receivable,

LETV said, in order to protect the related party revenue accounted for