LeTV (300104) Chairman and CEO Jia Yueting has not returned to mainland China, and it has been more than four months since he left.

On October 10, Jia Yueting, who was in Hong Kong, accepted an exclusive telephone interview with a reporter from Caijing. During the phone call, he responded: “A lot of the comments linking LeEco to politics are rumors. LeEco is a 17% market-oriented company.” “I’m not coming back because I’m going all out to make overseas business solid.”

He believes that a model similar to LeTV has not yet appeared overseas, so we have to use this time window to compete with American Internet companies such as Amazon. The current rumors about LeTV are all rumors and come from competitors.

But from the outside world, in the past four months or so, his experience has gone beyond "rumors." During this time, the State Administration of Press, Publication, Radio, Film and Television (hereinafter referred to as the "SARFT"), the competent authority of Internet TV, issued frequently articles to rectify the video industry with unprecedented intensity. Affected by this, the sale of LeTV boxes was suspended. By mid-October, LeTV shares were suspended for three times, and the market value of LeTV lost about RMB 10 billion.

LeTV COO Liu Hong said in an interview with a reporter from Caijing that LeTV TV has not received a written rectification notice from the State Administration of Radio, Film and Television, but the verbal notice has arrived. LeTV is actively negotiating with the State Administration of Radio, Film and Television on how to make corrections.

Earlier, a person in the radio and television industry revealed to the Caijing reporter that the State Administration of Radio, Film and Television had convened all video integrated broadcast control licensees to come to Beijing for a meeting. At the meeting, they verbally requested that the licensees concerned could not cooperate with LeTV for the time being. As of Caijing, the negotiation between the two has not been reached, and the attitude of the State Administration of Radio, Film and Television has not changed.

On October 10, after experiencing three consecutive days of stock price declines in the previous week, LeTV once again suspended trading and announced that it was planning major events. This is LeTV's fourth suspension since July. As of Caijing’s press release, LeTV is still in suspension, and its stock price is fixed at the closing price on October 27: 7 yuan, close to the lowest share price of the year set at 10 yuan on July 24.

Even so, Jia Yueting, who has stayed overseas for several months, has no intention of returning to mainland China. In an exclusive interview with a reporter from Caijing, he said that LeEco has subverted the television industry, but "do not say that we are subverting the radio and television industry, because our model and radio and television are actually very complementary." He believes that LeTV has the strongest transmission capacity, the most efficient entrance, and the most video content, so it can promote the innovation and transformation of the broadcasting system.

On August 2010, 8, LeTV, founded by Jia Yueting, was listed on the A-share market and became the first listed company in China's video industry. That year, LeTV had an operating income of 12 million yuan and a net profit of 2.38 million yuan. With the aura of the first share of the triple play and the innovative image of an industry "disruptor", LeTV's market value has risen all the way, rushing to 7009 billion yuan at the beginning of 2014, becoming the company with the highest market value on the GEM, and Jia Yueting has also risen to the richest man on the GEM. . When the market is most optimistic, National Securities, China International Capital Corporation and others predict that the future market value of LeTV will exceed 410 billion.

But from peak to trough, just a few months. With the rectification of the State Administration of Radio, Film and Television and various rumors and controversies, LeTV's share price continued to fall. Before LeTV was suspended on October 10, its market value had fallen to 27 billion yuan.

But at the same time, LeTV's new quarterly report is quite beautiful, and the impact of related rectification and rumors is not visible: operating income in the first three quarters of this year was 47.45 billion yuan, a year-on-year increase of 247.56%, and net profit was 2.18 million yuan, a year-on-year increase of 18.36%. .

In an exclusive interview with a reporter from Caijing on October 10, Jia Yueting said,"The most difficult thing about LeEco is that the first is that we can't talk about suffering, and the second is that many irrelevant things are tied to us."When a reporter from Caijing asked "Whether Wang Cheng of Huijin Lifang is the rumored order completion", Jia did not respond positively, but said: "Huijin Lifang's investment is not an abnormal investment."

In July 2013, Jia Yueting said in an exclusive interview with a reporter from Caijing:"A relative of Ling's family entered during LeEco's Pre-IPO and accounted for a very low stake, about 1%."(Lingjia refers to the Lingzhi family, then vice chairman of the Shanxi Provincial Political Consultative Conference, who was undergoing organizational investigation).

From the perspective of those in the industry who understand the history of LeTV,Jia Yueting has been well versed in capital operation and the relationship between government and business for many years. From Yuanqu, Shanxi to Taiyuan and then to Beijing, he wandered inside and outside the red line of supervision and policy. LeEco benefited from this yesterday's success, and today's suffering also stems from this.With the development of the situation, the unknown side of LeTV and Jia Yueting is gradually emerging.

The fate of LeTV is no longer in Jia Yueting's grasp.

Get started

From setting up his first company at the age of 23 to coming to Beijing to work hard at the age of 30, Jia Yueting in his early years was generally a self-employed self-employed who became more and more courageous and frustrated. He chased every opportunity he saw and knew how to use his strength. Opportunistic

Shanxi businessman Jia Yueting has a very different growth history from other Internet elites, but he is not the legendary "coal boss".

Jia Yueting was born in Xiangfen County, Linfen City, Shanxi Province in 1973. His father was a local middle school teacher and his family was ordinary. In the 90s, after graduating from a taxation college in Shanxi, he did not return to his hometown. Instead, he came to his girlfriend's hometown of Yuanqu County Local Taxation Bureau to work as an ordinary network technical administrator with a monthly salary of about 300 yuan.

A local official said that the first label on Jia Yueting was the son-in-law of the deputy county chief. During the Yuanqu period, Jia Yueting had a sensitive sense of smell, and was more adventurous but not cautious. The official said that Jia was holding an iron rice bowl in the local tax bureau and was engaged in a side job. He often left when he was at work, and his leadership was not good at saying anything.

At the age of 23, Jia Yueting resigned and founded Shanxi Yuanqu County Zhuoyue Industrial Company to engage in various businesses such as offset printing plants and steel trading. But he was not satisfied with the meager profits brought about by these businesses, and then raised 500 million yuan to invest in the construction of an excellent bilingual school.

A local in Yuanqu told the Caijing reporter that there was a lot of discussion in the county that a 500-year-old young man could spend XNUMX million yuan to build a school.

Industrial and commercial information shows that the registered capital of Excellent Industry is 50 yuan, Jia contributed 20 yuan, and his wife contributed 20 yuan. A few years after Jia Yueting left Yuanqu, the legal representative of Joyo Industries was changed to his retired father-in-law.

Zhuoyue Bilingual School was the only private school in Yuanqu County with full coverage from elementary school to high school at that time. It was very popular, but this did not stop the young man's ambitions.

In addition to printing, steel, and education, Jia Yueting also opened a brick factory, did transportation, ran a computer training organization, and did a seed business for several months. He even opened a fast food restaurant named McKenzie.

A person who has run a brick kiln factory with Jia told the Caijing reporter that the business Jia Yueting does may not be the most profitable, but the idea must be the most advanced. He always starts a new business while running an old business, and starts another new business when the new business is not yet mature. He does not pursue whether the business can be profitable, but just thinks about how big the business can be. Some people believe that Jia Yueting's style of paving, telling stories, and having a stronger sense of smell than execution has been developed in Yuanqu. At present, the business of LeTV Group involves agriculture, film and television, e-commerce, wine, video, TV products, car networking, etc.

According to people familiar with the matter, Jia Yueting came into contact with the "communication business" by chance at a dinner in 1998 and realized that this was a big opportunity, so he abandoned his offset printing factory, steel factory and bilingual school and brought his wife and children. Taiyuan rushed and established Shanxi Xibeier Communication Technology Co., Ltd. (hereinafter referred to as "Shanxi Xibeier").

A business partner of Jia Yueting's early years told the Caijing reporter that in 1998, Jia Yueting, in order to intervene in the construction of mobile base stations, had 20 yuan in cash and squatted at the door of a leader of Shanxi Unicom.

This business partner said that Jia had a net worth of about 30 yuan at the time. He found a Shanxi Unicom leader who was responsible for the construction of the base station, hoping to get some projects, but he did not know each other before. In order to express his sincerity and achieve his goal, he stood at the door of the other party for one night.

Since then, Jia Yueting received a large project-a local mobile operator to build a base station, and what Jia Yueting did was to produce and install lightning arresters for the base station. His Siebel career also began.

Shanxi Xibeier's second business is to sell repeaters to operators (amplify base station signals through repeaters, and then spread them to farther and wider areas). At that time, Jia Yueting saw someone producing repeaters in Sichuan from the Internet, so he called to ask about joining. The other party thought he was a liar. In order to persuade the other party, Jia took the official seal and company business license and went to Sichuan on the same day. In the end, this business made him one or two million yuan.

From the establishment of the first company until 2003, Jia Yueting was generally a self-employed self-employed who became more and more courageous and frustrated. He chased every opportunity he saw, and knew how to use his strength, with an opportunistic color. Merchants are everywhere in Shanxi. But Jia Yueting is different from them in that he is still a half idealist, so he came to Beijing.


There are three passes to start a video website business: license pass, capital pass and industry resource pass. For many years, LeTV has been a mysterious "customs clearance" master in the eyes of its peers

When Jia Yueting first entered Beijing in 2003, he was no different from the small town youth who went to Taiyuan to look for opportunities at the beginning of the year. He rented a residential house and served as an office and residence in Zizhuqiao Meilin Apartment, and established Beijing Xiboer Communication Technology Co., Ltd. (hereinafter referred to as "Beijing Xiboer").

Jia Yueting does not have any strong relationships in Beijing, so for the first time he adopted the model of partner entrepreneurship. Partners include Liu Hong, the current vice chairman of LeTV. Jia Yueting's first big deal in Beijing was to spend millions of yuan in venture capital to purchase a BMW 150-series sedan. He also hired a driver from Shanxi.

A few months later, Beijing Xiboer obtained the indoor coverage qualification of Beijing Netcom, its first bidding project in Beijing. An early LeTV employee told the Caijing reporter that this project was brought together by one of its partners through his relationship with Netcom.

Since then, Beijing Xiboer specialized in undertaking indoor and outdoor network coverage services that telecom operators do not value but are essential. At a time when telecom high-tech enterprises are rising, mobile communications and the Internet are on the rise. Jia Yueting seized the opportunity to start developing mobile streaming media business. , Get involved in the Internet.

In 2004, LeTV, which was born out of the Streaming Media Department of Beijing Siboer, was formally established.

The scale of Jia Yueting's new business is not the same as that of the self-employed in Shanxi. Although the projects involved are as diverse as before, and the successes and failures are also mixed, a significant difference has emerged: Jia began to have "noble people" to help.

In China, "nobles" often refer to those powerful politicians. In the past, land was the best way to realize power, so China's real estate industry or certain monopolistic industries often saw the shadow of "nobles". In new economic industries such as the Internet, the early elites mostly received Western education and believed in wealth under the sun. They believed that they did not need "noble people."

Jia Yueting broke this rule to some extent. Jia Yueting is dark and thin, not tall, and a little shy to see strangers, walking very slowly. An industry insider who has been acquainted with Jia for many years said that Jia has a small amount of alcohol and is not good at socializing, but has a strong ability to grasp key relationships.

A businessman familiar with Jia Yueting said: “He can spend 10 yuan for 100 million.” The person gave an example that the other party praised your luxury car as a good one, and ordinary businessmen would generously lend you a few days to drive it. And Jia may choose to give the car to you on the spot.

Around 2005, it was introduced that Jia Yueting met Wang Cheng, the president of Netcom Tiantian Online. The above-mentioned businessman said that this person was one of the hubs for Jia Yueting's subsequent prosperity. The aforementioned early employees of LeTV told the Caijing reporter that LeTV had a difficult life back then and tried every means to find business cooperation opportunities. The most convenient way is to use the video source in hand to cooperate with the operator or the operator’s subsidiary. Charge the user SP fees and give LeTV rebates appropriately.

At that time, Netcom Tiantian Online was a subsidiary of China Netcom Group, formerly known as Jiuzhou Online. It was a telecom value-added and Internet value-added service enterprise created by Netcom through system innovation and investment companies such as IDG and Softbank.

At the press conference established by Tiantian Online in 2004, a reporter from the communications industry met Wang Cheng for the first time. He told a reporter from Caijing that the reporters at the scene wondered that this middle-aged man who had never appeared under the Netcom system was actually the president. Many titles are printed on Wang Cheng's business card, such as the vice president of the China Young Entrepreneurs Association. This reporter was subsequently told by a senior person from Netcom who was familiar with Wang Cheng, who was the younger brother of a politician, and suggested that Wang Cheng be interviewed.

A reporter from Caijing found thatThe above-mentioned politicians have a younger brother named Ling Wancheng, who later changed his name to Wang Cheng.

Relevant information shows that Wang Cheng has been engaged in editing and editing work for Xinhua News Agency for many years. The press conference of Netcom Tiantian Online was his first public appearance.

An insider revealed that the early business cooperation between Siboer and Netcom Tiantian Online had little effect, but Wang Cheng and Jia Yueting became very strong friends. The person said that Wang Cheng has a strong idealistic color. Wang Cheng has repeatedly mentioned that he is convinced that domestic video websites will be able to do it under the background of the integration of the three networks, and Jia Yueting is a clear-headed and daring business. people. The two are still fellows in Shanxi. Yuanqu County, where Jia Yueting originated, is less than two hours' drive from Pinglu, Wang Cheng's hometown. Therefore, the two hit it off.

Wang Cheng published a book in July 2005 called "Communication Culture Wave". Wang Cheng wrote that my country’s communications culture industry has ushered in a rare opportunity for development. He also quoted a French reporter who said, “In the Internet age, whoever buys the culture can control the era.” And his The ideal is to make Everyday Online a TV-oriented, entertainment-oriented, family-oriented, and high-quality "Internet TV". This is very similar to today's LeTV TV.

In 2008, LeTV made its first public financing. Beijing Huijin Cube, Shenzhen Innovation Investment, and Shenzhen Nanhai Growth Selection Fund injected 5200 million yuan into it. Wang Cheng was one of the early partners of Beijing Huijin Lifang. According to the 2008 industrial and commercial information, his investment in Huijin Lifang was 2 yuan and his shareholding was 0.04%. His registered address is "Yangfangdian, Haidian District, Beijing". Road 3, 5th floor × door × floor × number". It is a low-density, mature community with a quiet environment. Its better known name is: Xinhua News Agency Huangtingzi Dormitory District. To the north of the courtyard is Jingxi Hotel, and further north is Fuxingmenwai Street, across the street from CCTV and Millennium Monument.

However, as disclosed in the prospectus submitted by LeTV on June 2010, 6, the name of Wang Cheng did not appear in the list of partners of Beijing Huijin Lifang Investment Management Center, but there was a woman named Wang Ling who lives in the dormitory of Kunpeng Group Company in Shunyi District, Beijing. Its capital contribution in Huijin Lifang is also 4 yuan, holding 2% of the shares.

A reporter from Caijing found that before and after taking a stake in LeTV in 2008, Beijing Huijin Lifang invested in two quasi-listed companies, Shenzhou Taiyue (300002) and Oriental Risen (300118). Shenzhou Taiyue submitted the prospectus in 2009. On June 2010, 6, 23 days after the prospectus was submitted on LeTV.com, Risen Energy also submitted the prospectus. Both Shenzhou Taiyue and Dongfang Risheng’s prospectus indicated that Wang Cheng, the seventh partner of Beijing Huijin Lifang, invested 19 yuan and held 2% of the shares.

According to the industrial and commercial information of Beijing Huijin Lifang Investment Management Center (Limited Partnership), Wang Cheng is indeed one of the partners of the company. In April 2008, he invested 4 yuan to join Huijin Lifang. Wang Ling made a monetary investment of 2 yuan on December 2009, 12, and appeared in the new batch of partners. At this time, Wang Cheng's name has disappeared.

Jia Yueting mentioned in an exclusive interview with a reporter from Caijing in July 2013 that “a relative of Ling's family entered during LeTV’s Pre-IPO and took up a very low share of about 7%.”

Is this "relative" Wang Cheng, that is, the rumored Ling completed?In the interview, Jia Yueting did not respond positively to the reporter's verification.A related person of a large investment company in Beijing once told a reporter from Caijing that the company originally intended to invest in LeTV, but during due diligence, it was found that some of its shareholders were related to individual politicians and therefore withdrew.

Jia Yueting responded to the Caijing reporter in an exclusive interview that Huijin Lifang's investment in LeTV back then was a normal and pure financial investment.

Jia Yueting said that the financing of LeTV was very difficult, and Huijin Lifang was the only company that could understand the LeTV model. "As for Wang Ling and Wang Cheng, this has nothing to do with us. Internet companies don't want to have anything to do with politics. Huijin Lifang did not give any help during the development of LeEco."

However, after meeting Wang Cheng in 2005, the development of Jia Yueting and LeTV has indeed entered the fast lane. Jia gradually got to know the Shenzhen Venture Capital Department and the Shenzhen Tongchuang Weiye Department. A venture capitalist in the Internet industry told a reporter from Caijing that he had personally heard an important person in the financial circle praise Jia, calling him a master of capital operations and a next-generation leader. At that time, LeTV had only 30 employees. According to industry and commerce data, there were 5 local employees and 25 non-local employees, and no profit had yet been generated.

In China, it is more difficult to start a video website business than other Internet fields. Because of high content copyright fees and bandwidth fees, video sites are more hungry for funds. At the same time, it is necessary to apply for a variety of licenses, which are subject to the multiple supervision of the Ministry of Industry and Information Technology, the Ministry of Culture, the State Administration of Press, Publication, Radio, Film and Television, the Propaganda Department, and the Office of Cyberspace Affairs. A high-level person on Youku told the Caijing reporter that video websites are shrouded in a large invisible network, and their business is often restricted due to unclear standards, lagging policies, or multiple politicians.

The senior person said,There are three passes to start a video website business: license pass, capital pass and industry resource pass. In the eyes of its peers, LeTV has been a master of "customs clearance" for many years.

In 2004, the former State Administration of Radio, Film and Television successively issued Orders 39, 34 and 42 to delineate the red line for access to video website operations. One of them requires that Internet sites must apply for and obtain the "License for Dissemination of Audiovisual Programs on Information Networks", that is, the "video license" commonly known in the industry before they can be put into operation. LeTV is the first company to obtain a license together with a few private companies such as Sina. Later, the former State Administration of Radio, Film and Television issued licenses for audio-visual content in accordance with mobile phones, PCs and TV terminals. LeEco has become the first and only company among private video companies to obtain a license for mobile terminal content operation. In 2006, LeTV also obtained a video streaming SP license from Shanghai Mobile.

In cooperation with operators, LeTV is also deeper than other video sites. At that time, “LeTV Unlimited” under LeTV provided more than 70% of content for China Unicom’s mobile phone streaming media business brand “Videos Shinkansen”, and signed more than ten PDA-based mobile phone streaming media projects with China Mobile.

From beginning to end, LeTV and other domestic video sites have completely different "genes": the latter was an imitator of the YouTube model from the beginning, with the help of foreign venture funds to take advantage of the trend, and finally chose to list on the Nasdaq; LeTV. Born out of China's tightly regulated telecom operator cooperation system, and from the first day, LeEco has introduced Chinese domestic funds, and it has also chosen the domestic GEM for listing.

When it went public in June 2010, LeTV ranked 6th in domestic website traffic, far behind Youku's 168th, Tudou's 10th, and Xingwang's 12th, but these video websites are still losing money. China's groping is far less healthy than the financial indicators announced by LeTV.

According to LeTV's online market announcement, its top two revenues are paid users and advertising. Its largest advertiser, Beijing Xinruili Advertising Co., Ltd., has only two office staff for a long time, but it has developed an advertising business of tens of millions. The other two advertisers, Beijing Zhongshi Longsheng Advertising Co., Ltd. and Beijing Chunqiucheng Advertising Co., Ltd., are legally represented by the same person named Chen Jie. The former is located at No. 2, Xingyi Street, County Town, Tongzhou District, Beijing, and the latter is Beijing Huairou District, Yujiayuan Second District, Building A, Gate 564, the establishment dates of the two companies are only three months apart, and the registered capital is both 1 yuan.

The industrial and commercial annual inspection report shows that in 2008, Zhongshi Longsheng had zero operating income, a net loss of 0.45 yuan, and one employee. However, the 1 LeTV prospectus disclosed that Zhongshi Longsheng contributed 2010 million yuan to LeTV in 2008. In 651, Zhongshi Longsheng’s operating income was 2009 yuan, the net profit was 8.5 yuan, and there were 0.23 employees. The LeTV prospectus disclosed that Zhongshi Longsheng contributed 2 million yuan in advertising for LeTV. income.

Bao Fan, CEO of China Renaissance Capital, commented: "A video website ranked 17th, but has the industry's first financial indicators, it is a trick."

LeTV finally successfully listed on the A-shares in Mainland China, which were strictly regulated and audited. A person familiar with the matter said that from the investor's standpoint, Youku has submitted a prospectus in the United States, and the video field needs a large, purely domestically-funded listed company. The insider said that the investors behind LeTV's online market are more willing.

Jia Yueting told the Caijing reporter that the China Securities Regulatory Commission had conducted an in-depth investigation into the financial fraud of LeEco previously questioned by the media, which (still approved for listing) means that LeEco has no business problems.

Regarding the rumors that Jia Yueting or other Jia family members are holding LeTV shares on behalf of others, Zhang Te, LeTV’s board secretary, firmly denied in an interview with a reporter from Caijing: “How come there is a proxy holding? If proxy holding is equivalent to false disclosure If it’s gone, the Securities Regulatory Commission will also impose penalties.”

Public information shows that Jia Yueting has always held more shares of LeTV. The highest amount was close to 70%, and the current figure is 44.21%. During the development process, even if LeTV's funds are tight, he is not willing to dilute his equity too much.

"Little people came to Beijing, relying on their own imagination and resources to grow up step by step, and finally achieved a listed company in a miraculous opportunity. This is the first half of Jia Yueting's journey." An early LeTV employee said, just arrived. When he and Jia Yueting were walking on Guomao Street in Beijing, Jia suddenly said that we must become the best here in the future.


A partner of Jia Yueting said: "Shanxi people are famous for operating ticket accounts, and Jia Yueting is a person who dares to play money." During the years before and after the LeTV online market, there was no shortage of capital operations that stepped on the line.

Going public will always give entrepreneurs a taste of the beauty of "getting something to do with gold."

In August 2010, LeTV became the first listed company in China's online video industry four months before Youku went to the United States. In the secondary market with high global P/E ratios, LeTV's market value surpassed Youku Tudou in less than three years after its listing. Its 8 P/E ratio reached 2014 times, while the average P/E ratio of the ChiNext was less than 110.54 times.

Many people in the Internet and financial circles said in an interview with a reporter from Caijing that their perception of LeTV is "virtual and real". LeTV's business is indeed expected, but its self-packaging and various incomprehensible capital operations , And it makes people feel a little imaginary.

Many insiders believe that Jia Yueting is good at capital operation. When Shanxi Xibeier was established in Shanxi in 2002, Jia Yueting personally invested 70 yuan. In less than a year, his investment increased to 2400 million yuan.

However, people who met Jia Yueting in Taiyuan told the Caijing reporter that when the business is in a state of loss, the registered capital of the company has increased by more than 30 times within a year. This operation is very common in Shanxi, such as finding an accounting company and then finding a loan company. , Can quickly enlarge the company's total assets and revenue.

Jia Yueting’s partner in Beijing told the Caijing reporter that almost all of the company’s development funds came from bank loans during the Sibel period in Beijing. The real income is not important to Jia. He will try his best to borrow money to develop new business. "Shanxi people are famous for operating ticket accounts, and Jia Yueting is a person who dares to play money."

Playing money is sometimes interpreted as a bookmaker and financial skill in the A-share market, but these often happened ten years ago. With the increasingly stringent supervision, this practice is much less, or goes underground.

However, on LeTV, the outside world can still see some vaguely demarcated capital operation behaviors. Among them, the most questioned by the industry is LeTV's acquisition of Huaer Film and Television in 2013.

In September 2013, when the Growth Enterprise Market rose wildly, LeTV suddenly suspended trading for more than a month. In October, LeTV announced that it would simultaneously acquire the production company Huaer Film and Television and LeTV New Media. The method of acquisition is to issue 9 million new shares to acquire LeTV New Media and obtain 10 million yuan in cash, and then issue 1009 million new shares plus 3 million yuan in cash to acquire Huaer Film and Television.

This acquisition is a 30 times premium to Zhefu Holdings’ acquisition of the equity of Mengxiangqiangyin held by Canxing, and Huanrui Century’s indirect listing through an A-share shoe sole manufacturer, which is also known by the industry as the three classic A-share acquisitions in 2014 . What is remarkable is that it has issued additional shares, but the holdings of existing controlling shareholders have not been diluted accordingly.

In this acquisition, Jia Yueting did two things.

The so-called reality means that Huaer Film and Television itself is a good asset as a content provider. At the same time, Huaer Film and Television and LeTV belong to the upstream and downstream of the industry chain, and the synergy effect is obvious.

The so-called virtual is to buy a shell company-LeTV New Media with 1009 million shares of LeTV. The company was registered in Tianjin by Gao Fei, the vice president of LeEco, on the 22nd day after LeEco was suspended.

According to industrial and commercial data, its controlling shareholder is LeTV Holdings (Beijing) Co., Ltd., a company absolutely controlled by Jia Yueting and Jia Yuefang (Jia Yueting’s sister).

In response to doubts, Zhang Te, secretary of the board of directors of LeTV, responded to the reporter of Caijing, “The company was established shortly, and there were 3 million yuan in cash on the account. I used 3 million yuan to acquire it. This is very reasonable. And the subscriber (LeTV Holdings) , Hongtu Venture Capital) The underlying shares subscribed by it will be locked for three years."

However, in the "Agreement on Issuing Shares to Purchase Assets" signed at that time, there was no mention of 3 million yuan in cash.

The focus of this matter is not whether the purchase price is reasonable or not. A fund company partner analyzed that, generally speaking, the issuance of additional shares to purchase assets will dilute the proportion of existing shareholders. This time LeTV diluted Jia Yueting's equity through the additional issuance of Huaer Film and Television, and he immediately injected a company controlled by himself into LeTV. Therefore, its shareholding in LeTV has changed from 46.57% before the transaction to 44.66%. , The controlling position has hardly changed.

The partner said that this is equivalent to a private placement of LeTV Holdings at a low price of 29.73 yuan per share. The controlling shareholder knows that there are major benefits and makes additional issuance at a low price. Although the CSRC does not prohibit it, it may harm the interests of other shareholders, especially small and medium shareholders.

An article published in Beijing Business Daily in October 2013 commented, “Jia Yueting has created a capital perpetual motion machine for himself. In the future, every time he makes a large-scale external acquisition, he can inject his own company by the way, so that LeEco While the net is expanding indefinitely, it will not harm Jia Yueting's controlling position in the slightest."

Another questionable thing Jia Yueting did in the A-share market was to frequently pledge his shares in LeTV. According to the company’s announcement, since LeTV’s listing in August 2010, the controlling shareholder Jia Yueting has pledged stocks 8 times (including 10 times in 2014, 2 times in 2013, 5 time in 2012, and 1 times in 2011), and released 2 times. Another major shareholder Ms. Jia Yuefang also pledged 14 times.

When the major shareholders of listed companies are thirsty for money, but are unwilling to weaken their control due to the reduction of their holdings or their status is not suitable for reducing their holdings, pledged stock financing is a good solution. However, among the nearly 2013 listed companies where senior executives pledged their stocks in 900, it is rare that Jia Yueting has a large pledge ratio and many times. Jia Yueting's sister and brother had just released the shares from Dongguan Trust, Shanxi Trust, Shanghai International Trust, China Railway Trust and other institutions, and then pledged the shares to securities companies such as Dongfang, CITIC and Ping An.

Deng Feng, associate professor of Peking University Law School, told the reporter of Caijing,These capital behaviors are difficult to judge by legality or illegality, and can only be said to be gray.

At the beginning of 2014, when Jia Yueting was with the image of subverting the traditional TV industry and the pioneer of industrial integration, the market value of LeTV reached 410 billion yuan, becoming the company with the highest market value on the GEM, and Jia Yueting also became the richest man on the GEM.

At this time, the capital operation of Jia Yueting sister and brother reached a small climax. Jia Yueting conducted 8 consecutive pledge-type repurchase transactions, and Jia Yuefang successively reduced his holdings of 1400 million shares in the first half of this year, and the accumulated cash amount was about 7.1 million yuan. Jia Yueting's sister and brother had a total of 12 personal equity pledge financings in four years. Where did the money go?

According to the "Announcement on Pledged Share Repurchase Transactions of Controlling Shareholders" disclosed by LeTV in July 2014, Jia Yueting has pledged 7 shares since 2010, accounting for 262223800% of his shares and 70.52% of the company's total share capital. .

If calculated at 35 yuan per share and the 30% pledge rate prevailing on the GEM, Jia Yueting's financing amount obtained through pledge is about 27.5 billion yuan (because the stock price is above 40 yuan most of the time in the past year, the real financing amount may be higher than this Numerical value). LeTV only raised 7.3 million yuan in its online market.

Regarding the whereabouts of these billions of billions of financing funds, the announcement is only a brief description-for personal investment. A partner of a fund company told the Caijing reporter that due to regulatory restrictions, Jia Yueting’s personally raised billions of yuan of financing cannot be used directly by listed companies to develop new businesses. They can only be used by listed companies to borrow money from individuals. use.

However, according to LeTV's financial report, there is no such loan agreement. This means that LeTV has not received direct financial support from the multiple equity pledge financing of the Jia family.

The above-mentioned partners stated that, generally speaking, there are two destinations for this financing amount, one of which may be the operation of a personally controlled affiliate. Currently, Jia Yueting’s holding companies include LeEco Holdings (Beijing) Co., Ltd., LeEco Pictures (Beijing) Co., Ltd., LeEco Entertainment Investment (Beijing) Co., Ltd., etc. It is worth noting that the number of affiliated companies controlled by the same controller disclosed in LeTV’s annual report increased from 2010 in 5 to 2013 in 14.

Another possibility is to use it to hype and push up the company's stock price. There are precedents in the A-share market to obtain funds for manipulating stock prices through stock pledge financing, such as the well-known market maker Lu Liang in 2001, and the later Delong series.

Lu Liang’s approach is to first pledge stocks to obtain huge financing, control a company through financing to achieve the purpose of manipulating secondary market financing, and then use reciprocal methods to raise stocks, refinance the stocks, increase market value, and then go to pledge financing. The new funds are then used for other stocks and used as the return of other stocks to make up for the previous debt and financing interest. Then set up a new company to carry out a new round of development. The key to maintaining this approach is that the financing chain cannot be broken.

The historical records of Lu Liang and Delong show that those who are trapped in the "trap" of pledge financing have a reliance on frequent financing. A high pledge rate can be exchanged for a high financing amount, but the liquidation line is getting higher and higher. Only by ensuring that the stock price continues to rise or stabilize can the risk be controlled. And the higher the stock price, the higher the temptation to continue to pledge financing, and the debt service will also increase.

At present, LeTV's circulating market value is about 175 billion yuan, and the historical transaction amount in a single day is up to 21 billion yuan. The average daily transaction amount in the past year is about 8 million yuan, so it is not difficult to maintain the current stock price with the financing amount obtained by pledge .

In April 2013, Jia Yueting responded to this matter for the first time to the outside world, saying that pledge financing is mainly used for new businesses such as e-commerce, and has nothing to do with the operation of LeTV. Zhang Te also told the Caijing reporter that what he pledged was the personal property of major shareholders. He would use the funds he received for his own investment. It was a two-pointer with listed companies. "The additional issuance of listed companies does not solve the overall layout of the group."

Jia Yueting is well aware of the risks of a high percentage of pledged stocks. He told the Caijing reporter that LeEco is trying to gradually release the risks, such as changing to equity financing. On August 8 this year, LeTV issued 7 million shares to five specific targets including LeTV Holdings and CITIC Securities, raising a total of 1.29 billion yuan. In addition, subsidiaries in the LeTV ecosystem have also begun equity financing. For example, LeTV Pictures, which is valued at 45 billion yuan, has recently completed financing.

This means that Jia Yueting is trying to gradually divest key businesses with good profitability from LeEco's listed companies, and establish independent subsidiaries before proceeding with equity financing, such as LeEco Sports and LeEco Cloud Computing.

Jia Yueting told the Caijing reporter that LeTV’s financing capabilities have always been one of the reasons that hinder the rapid development of LeTV’s ecosystem. But why choose a high-risk personal pledge of equity rather than public equity financing, one of the reasons is that I don’t want to dilute too much equity prematurely, and I want to leave equity to employees; the second reason is that large-scale long-term investment is not suitable Listed companies with high short-term performance pressure do it.

The above-mentioned fund company partners said that another benefit of maintaining a high stock price is that it is very helpful for shareholders with restricted sales to reduce their holdings. Judging from the annual report, the major shareholders of LeTV have maintained a very good pace of reduction.

As of the announcement of LeTV's 2014 first quarter financial report, most of LeTV's early major shareholders, including Huijin Cube, Shenzhen Innovation Investment Group, Shanghai Yixun, and Shenzhen Tongchuangweiye, have cashed out.

Huijin Lifang was originally the third largest shareholder of LeTV, investing 2000 million yuan and holding 6.06% of the shares. Within four months after the lifting of the sales restriction in August 2011, it reduced its holdings by 8 shares.

At the end of 2011, its shareholding ratio fell to 2.95%. Based on the average price of LeTV's stock of 25 yuan that year, a total of about 8700 million yuan was cashed out.

Before LeTV’s share transfer on June 2012, 6, Huijin Lifang carried out another reduction in its holdings, cashing a total of 12 million yuan (calculated at an average price of 1.01 yuan per share). In the second half of 35, there was no reduction in holdings and the shareholding fell 2012%, the total number of shares held is 1.64 shares. The 686.071 interim report shows that Huijin Lifang holds 2013% of shares. In the third quarter of 0.52, Huijin Lifang was no longer among the top ten shareholders. LeTV's board secretary Zhang Te said that Huijin Cube "has long since retired."

If calculated according to the average price of LeTV's stocks in 2013 for the whole year of 33.15 yuan, plus the conversion of shares that year, Huijin Lifang cashed out about 2.92 million yuan that year. It can be estimated that Huijin Lifang has cashed out about 4.8 million yuan in three years. Compared with the initial investment in 2008, the investment income is at least 20 times.

Now in the list of LeTV’s top ten shareholders, Jia Yueting holds 44.42%, Jia Yuefang holds 4.30%, Liu Hong holds 3.32%, Cao Yong 2.42%, Jia Yuemin holds 2.38%, and Wu Mingxiao holds 0.73%. Other disclosures show that the shareholders are all public funds and other corporate legal persons. Between the left and the right, whether it is equity or business, LeTV seems to have embarked on a normal track.

But the past has been affecting the present and the future.


If LeTV still fails to complete the rectification in accordance with the requirements of the State Administration of Radio, Film and Television within a period of time, it may have its Internet video license revoked. It depends almost entirely on the attitude of the State Administration of Radio, Film and Television

An employee who joined LeTV in 2013 told a reporter from Caijing that LeTV is an alternative company in the Internet circle. The boss is rapidly expanding new business. In order to attract external talents, he has set up more than 30 vice president positions, and is constantly launching new businesses. Compared with other video websites and hardware manufacturers, LeTV is the most aggressive in its business, beyond the scope of other video companies, and its business model has also attracted great attention from all aspects.

After 2014, LeEco Holding Group has successively launched LeEco Super TV and LeEco Box, lay out film and television, agriculture, and put forward the concept of LeEco ecology. Liu Hong, the vice chairman of LeTV, told the Caijing reporter that LeTV has established a full-industry chain integration model of "content + platform + terminal + application". The goal of LeTV Group is to create a life circle for music fans, with "O2O" Way to transform existing industries.

Through LeTV's own brand of super TVs and set-top boxes, most of LeTV's online video content can be played on TV, and LeTV itself does not have an Internet TV audiovisual license and content operating license. In addition, LeTV has built dozens of carousel channels by itself to broadcast TV series, movies and other types of programs throughout the day. In fact, it is no different from TV stations. LeTV intends to build its own TV ecosystem in the name of cooperating with licensees. This has won unanimous applause from people from all walks of life who are dissatisfied with the monopoly of radio and television, but it violates the regulatory requirements of the radio and television authorities.

As early as 2011, the former State Administration of Radio, Film and Television issued Circular 181, stipulating that Internet TV content must be integrated on the broadcast control platform of the licensee (currently there are 7) in order to achieve the purpose of controllability. However, in the two years since Circular 181 was launched, there are almost no end products that truly comply with Circular 181.

Like other Internet companies, Jia Yueting has long wandered in the gray area of ​​radio and television supervision. The State Administration of Radio, Film and Television has been silent for many years in the face of the siege of Internet manufacturers. It wasn't until mid-June this year that they made frequent moves. However, under policy pressure, Internet companies have withdrawn from the TV side one after another, and LeTV’s carousel channels still exist. This is still the case until the reporter of Caijing.

On June 6 of this year, Jia Yueting left the country. LeEco’s official statement is that he was preparing for overseas subsidiaries, conducting business negotiations, and deploying overseas markets. Soon, a message that "LeTV boss Jia Yueting ran to the United States" was spread on social networks. The media has repeatedly asked when Jia Yueting will return to China, and LeTV said that "it should be next month."

It is rare for the CEO of a listed company to travel overseas and be late to return. This situation is rare, let alone when LeEco faces huge policy pressures and risks.

In mid-July, the SARFT met with the leaders of the three major central stations (CCTV, Radio International, and China Central Radio), as well as the four major stations of Guangdong, Zhejiang, Hunan, and Shanghai, and local radio and television bureaus. Issues, rectification direction and rectification time have put forward clear requirements. It is reported that LeTV was named by the State Administration of Radio, Film and Television. “The State Administration issued a regulatory order for Internet TV and set-top boxes. One of them is to require licensees to not cooperate with Internet companies that are seriously violating the regulations.”

Affected by this, LeTV's stock plummeted on July 7 and 16, and its market value evaporated by 17 billion yuan. It was forced to suspend trading on July 63 and held an investor exchange meeting at noon on July 7. LeTV subsequently announced good news such as cooperating with the Central Propaganda Department to build a party building channel, and taking a stake in Chongqing Broadcasting and Television Holdings' Chongqing Cable TV Network Co., Ltd. to apply for Internet TV content licenses. It also urgently raised 18 billion yuan on August 7. However, when the panic was still undecided, the State Administration of Radio, Film and Television hit another punch.

On August 8, SARFT interviewed seven Internet TV licensees. It is reported that LeTV and Xiaomi have been named again, and the supervision of SARFT extends from OTT boxes to TV. Affected by this, LeTV stock was suspended again.

On October 10, LeTV's stock was suspended for the fourth time this year because of "significant announcements."

The biggest problem facing LeTV is that it is difficult to find a TV program licensee to cooperate with. When talking about LeTV, an executive of China Network Television (CNTV) said, "Let's avoid it." The sale of LeTV boxes on its official website has been suspended. LeTV said it is actively cooperating with the rectification, and the re-launch time of LeTV boxes is yet to be determined.

Relevant experts pointed out that if the rectification is carried out in full accordance with the requirements of the State Administration of Radio, Film and Television, LeTV's existing business model will be greatly affected. One of the optimistic points of the LeTV model is that the hardware has meager profits or even losses, and it depends on content charges. But if the State Administration’s regulations are strictly enforced, this model will not be under our control. LeTV, which owns a large number of film and television rights, may become a content provider for the licensee, and its fate is not in its own hands.

Liu Hong, the vice chairman of LeTV, said that in the rectification plan, LeTV is willing to hand over the content to the licensee for operation, and it will charge for it. "My content payment model has not changed, just let it share with us." But this means that when users buy an Internet TV authorized by the same licensee, they can see LeTV's video content, which greatly increases the difficulty of LeTV's content operation.

The person in charge of a radio and television company told the Caijing reporter that if LeTV still fails to complete the rectification in accordance with the requirements of the State Administration of Radio, Film and Television within a period of time, its Internet video license may be revoked.

At the cusp of the storm, LeTV’s founder, chairman and CEO Jia Yueting has traveled overseas for several months. When will he return to China, whether he can return to the company smoothly after returning, and whether there will be unexpected changes in the future? No one knows.

At the end of the interview on October 10, Jia Yueting confessed to the Caijing reporter that if he could choose again, he would not let Huijin Libe become a shareholder of his company because of the rumors and risks they brought to the company. It's too much.

Jia Yueting said that he will not return to Mainland China for the time being, and that he will go to South Korea after leaving Hong Kong.