The newspaper reported huge losses in three quarters, the former member of the Development and Review Commission was investigated, and Leeco may face delisting.

Leeco reported huge losses in three quarters and was downgraded by 22 fund companies. It is also rumored that more than 10 former members of the gem Review Committee involved in the IPO examination of Leeco have been taken compulsory measures, and Letv may be forced to delist because of financial fraud.

Leeco seems to have never been at peace since its trading was suspended. First, the company's founder Jia Yueting slipped away on the other side of the ocean, then it was revealed that Letv owed payments to a number of suppliers, then Liang Jun, the company's current CEO, and a group of senior executives left, and finally, the company reported huge losses in three quarters and was downgraded by 22 fund companies. It is also rumored that more than 10 former members of the gem Review Committee involved in the IPO examination of Leeco have been taken compulsory measures, and Letv may be forced to delist because of financial fraud.

< strong > reported huge losses in the third quarter, and executives collectively left < / strong >

Leeco's third-quarter report released on October 27th revealed that the company's operating income in the third quarter was 6.095 billion yuan, down 63.67% from the same period last year. The net profit loss belonging to shareholders of listed companies was 1.652 billion yuan, down 435.02% from the same period last year. At the end of the third quarter, Leeco's monetary funds were only 833 million yuan, while its current liabilities reached 12.7 billion yuan, while the parent company's monetary funds were only 9.9785 million yuan. The results announcement was accompanied by an announcement of changes in the company's senior executives, saying that the company's general manager, Liang Jun, and senior managers Gao Fei, Zhang Mengyi, Jiang Xiaolin and Yang Yongqiang all submitted their resignations to the company for personal reasons.

the plummeting performance and the collective departure of core executives have made many fund companies with heavy positions in Letv restless. After the announcement, 22 funds lowered their valuation of Leeco, generally to 7.82. it has dropped nearly half of its closing price of 15.33 yuan after the suspension, and the biggest reduction is for Hua'an Fund, which adjusted Letv's valuation to 7.34 yuan. Fully reduced by 52.12% from before the suspension, the fund company's adjustment to Leeco's valuation is the second adjustment after the first downward adjustment in July, and institutions are more pessimistic about Letv after the resumption of trading.

three quarterly reports show that institutions are gathered among the top 10 shareholders of Leeco, among which many well-known institutions, such as Penghua Fund, China Post Fund, Dacheng Fund and Guangfa Fund, are among them. although the resumption time of Leeco has not yet been determined, it can be predicted that this hidden thunder of Leeco is basically inevitable.

< strong > former CDRC members were investigated, and Leeco may face delisting < / strong >

Oct. 30, relevant media quoted insiders as saying that several former CDRC members were investigated or involved in Leeco's IPO. It is reported that the seven members who participated in Letv's IPO that year were Wang Yuehao, Fu Yan, Sun Xiaobo, Zhu Qian, Zhang Yunlong, Li Wenxiang, and Xie Zhongping. Several media have verified that Xie Zhongping, then deputy director of the Asia-Pacific Group accounting firm, has been verified, while Sun Xiaobo, deputy general manager of Beijing Tianyuan Quan accounting firm at the same time, according to the staff of Tianyuan Quan accounting firm, has not appeared in the firm recently and is likely to have been asked to assist in the investigation.

it is reported that Li Liang, former director of the Securities Regulatory Commission's Investor Protection Bureau, was investigated on December 1, 2014, after serving as a director of the issuance Review Division of the issuance Supervision Department of the CSRC and deputy director of the gem issuance Supervision Department. On November 10, 2016, the Yangzhou Intermediate Court held a public hearing on the bribery case of Li Li, former director of the Investment Protection Bureau of the Securities Regulatory Commission, according to Jiangsu Court Network. The procuratorate accused Li Liang, the defendant, of taking advantage of his relevant positions with the CSRC from 2000 to 2012 to help nine companies, including Kangmei Pharmaceutical and Leeco, apply for public offerings or listings, and received property from investors of the above-mentioned companies from 2000 to 2013, totaling about 6.93622654 million yuan.

in 2010, the prospectus of Leeco IPO showed that as a video website, it began to make a profit in 2008, but at that time, the living environment of mainstream video websites was a loss, while Letv ranked only 168th in the traffic ranking of domestic websites. Liu Xiewei, a researcher at the Institute of Finance and Economics of the Central University of Finance and Economics and director of the China Enterprise Research Center, once questioned that Letv was suspected of illegally concealing the company's profit and loss information and failed to disclose the composition of the main business profits in his annual report. nor did it clearly explain the source of its operating profits.

if Leeco is suspected of fraudulent listing, according to the "some opinions on reforming and improving and strictly implementing the delisting system of listed companies" issued by the Securities Regulatory Commission in 2014, Leeco is very likely to face the risk of suspending listing. However, investors are not completely unable to recover their losses. According to the relevant lawyers, if Leeco delisting due to punishment, sponsor institutions and law firm intermediaries need to be held responsible in the CSRC's determination. Then investors can apply to the above-mentioned institutions for claims.

Edit: mary