Jia Yueting's High-level Holdings Decreased by 14.025 Billion, Which Was Filled by Former LETV Executives

Jia Yueting's comments will never disappear with LETV's current situation. It is reported that Jia Yueting did not allow others to reduce their holdings, but he cashed out 10 billion from a high position, and then went away.Jia Yueting is overseas, but rumors about him are far from over. On the evening of December 4, a lawsuit announcement of Founder Securities about LETV executives exposed the equity pledge of Jia Yueting's confidants to the public.Liu Hong, vice chairman and director of LETV, and Yang Lijie, former chief financial officer of LETV, pledged LETV's shares to Founder Securities in October 2016 and June of the same year respectively, raising a total of 180 million yuan. At the same time, Jia Yueting himself has continuously reduced his holdings of LETV shares on a large scale since mid-2015 and made high-level cash out of about RMB 11.741 billion.

In this regard, a resigned LETV executive told the securities times · e company reporter, "Lao Jia (Jia Yueting) is not allowed to reduce his high-level holdings, but we are not allowed to increase our holdings to fill the hole he dug. Isn't this hollowing out the listed company?""Secret" in pledge litigationAn equity pledge lawsuit of Founder Securities showed that Jia Yueting's confidants carried out pledge financing "accurately" before the crisis of LETV.

Founder Securities announced on the evening of December 4 that in October 2016, Liu Hong pledged 6.5 million LETV shares to the company, including RMB 100 million, and then supplemented the pledge of 2 million shares; In June of the same year, Yang Lijie also pledged LETV shares to integrate 80 million yuan. Due to the judicial freezing of Liu Hong's Pledged Shares and the deterioration of LETV, the company asked Liu Hong and Yang Lijie to repurchase them in advance, but they failed to perform. The company has applied for enforcement according to law, and recently Changsha intermediate people's court has accepted the company's application for enforcement. The total amount of the above litigation cases was 192 million yuan.

Liu Hong and Yang Lijie, who were debt collected by Founder Securities this time, are "old subordinates" who have followed Jia Yueting for more than ten years.Yang Lijie was formerly the financial director of LETV. When Jia Yueting resigned as the CEO of LETV on May 22 this year, she also resigned from the position of financial director of LETV. Statistics show that Yang Lijie has long followed Jia Yueting since he started his business. In 2004, she served as the manager of the financial management department of Beijing xiber Communication Technology Co., Ltd. (founded by Jia Yueting and listed in Singapore). In 2008, she began to serve as the financial director of LETV. It can be described as Jia Yueting's confidant.According to LETV's 2017 interim report, Yang Lijie holds 10.4128 million shares of LETV, only lower than Jia Yueting, Liu Hong and vice president Yang Yongqiang among LETV's executives. A LETV insider told reporters that Yang Lijie is currently in the United States with Jia Yueting.

Liu Hong's personal data shows that his time following Jia Yueting is no shorter than Yang Lijie.

Liu Hong was born in 1973 and graduated from Beijing Broadcasting Institute with a double degree in 1997. His career began as a reporter. From 1997 to 2004, Liu Hong worked as a reporter for China Radio International. He participated in flood fighting coverage in 1998 and arrived in the Arctic with China's first Arctic scientific research team in 1999 to participate in interviews; From 2004 to 2008, he served as deputy general manager of LETV information technology (Beijing) Co., Ltd; Since then, he has been the vice chairman and director of LETV. Since August 18, 2015, Liu Hong has served as executive director of Coolpad group. On November 17, 2017, Liu Hong took over Jia Yueting as chairman of Coolpad's board of directors.

Today, the reporter repeatedly dialed Liu Hong's personal mobile phone number, but they were not connected.Although Liu Hong and Yang Lijie did not make a statement about the debt collection of Founder Securities, the timing of equity pledge financing was quite "accurate", just before the outbreak of LETV's capital crisis, when there were problems with LETV's Unlisted system funds.A LETV investor told the reporter of securities times · e company, "in the second half of 2016, there were major problems in the operation of LETV's Unlisted system business, while Jia Yueting extracted funds from the listed company system through a large number of related party transactions for blood transfusion".

It is still unknown whether the financing funds pledged by Liu Hong and Yang Lijie at that time were withdrawn by Jia Yueting and used in LETV's Unlisted system, which urgently needed funds at that time. However, it can be seen that as confidants, Liu Hong and Yang Lijie followed Jia Yueting and pledged most of their shares in LETV, effectively "drawing blood" from listed companies.According to LETV's 2017 semi annual report, as of June 30, 2017, Liu Hong held 61.2304 million shares of LETV, of which 56.8897 million shares have been pledged for financing, with a pledge ratio of 92.91%; Yang Lijie holds 10.4128 million shares of LETV and pledged 6.162 million shares in Founder Securities alone, with a pledge ratio of more than 59.18%.At the same time, Jia Yueting's own LETV equity pledge proportion is higher. According to LETV's third quarterly report of 2017, by the end of the third quarter, 1.02 billion of the 1.024 billion LETV shares held by Jia Yueting had been pledged for financing, with a pledge ratio of 99.6%.

Such a high proportion of equity pledge financing has become one of the methods for Jia Yueting and his cronies to "draw blood" from listed companies.Jia Yueting's sister and brother's high-level reduction and cash out exceeded 14 billionIn addition to equity pledge financing, Jia Yueting also "drew blood" by reducing LETV's shares at a high level, cashing out about 11.741 billion yuan.

On May 26, 2015, LETV announced that Jia Yueting planned to reduce his holdings of no more than 8% of LETV's total share capital within half a year, about 148 million shares. Subsequently, Jia Yueting reduced his holdings of about 135 million shares and cashed out 5.7 billion yuan in half a year. In early June 2015, Jia Yueting reduced his holdings of LETV and cashed out 2.5 billion yuan; On October 30, 2015, Jia Yueting transferred 100 million LETV shares to Xingen fund through agreement, cashing out 3.2 billion yuan.On January 16, 2017, LETV introduced rongchuang as a strategic investor. Jia Yueting transferred 170 million LETV shares to Tianjin Jiarui under rongchuang, obtaining RMB 6.041 billion.Through these reductions, Jia Yueting cashed out about 11.741 billion yuan from LETV.

In addition, Jia Yuefang, Jia Yueting's sister, also cashed out by reducing her stake in LETV. In January 2014, Jia Yuefang reduced his holdings of 14 million LETV shares; From December 9, 2014 to December 18, 2014, Jia Yuefang reduced his holdings of 12 million shares again; From January 30, 2015 to February 4, 2015, Jia Yuefang reduced another 24 million shares. Through these reductions, Jia Yuefang cashed out about 2.284 billion yuan.In total, Jia Yueting's sister and brother reduced their holdings of LETV shares at a high level and cashed out about 14.025 billion yuan.Before Jia Yueting dug the pit, senior executives came to fill it

Under the condition that LETV's capital crisis has not been exposed, Jia Yueting and his cronies have "drawn blood" from listed companies through a high proportion of equity pledge and repeated high-level reduction and cash out. Meanwhile, the aforementioned outgoing executives said that a group of LETV executives were required to increase their holdings of LETV shares at this time.In September 2015, the three executives of LETV, Liang Jun, Goofy and Wu Yaya, jointly increased their holdings of LETV's shares by nearly 10 million yuan.In September 2016, LETV's phase I ESOP completed its stock increase, with a total of 10.9536 million shares purchased and an increase of 510 million yuan.

In the share increase plan of the employee stock ownership plan, the total number of shares increased is 28, including about 10 supervisors and senior managers of LETV and 18 other core personnel of LETV.This time, the 10 executives in the circle include Ji Xiaoqing, Yuan Bin, Gao Fei, Jin Jie, Tan Shu, Wu Yaya, Jiang Xiaolin, Liang Jun, Zhang Minhui and Zhao Kai, with a total investment of 140 million yuan.In LETV's 2017 semi annual report, goofy, Jin Jie, Tan Shu, Wu Yaya, Jiang Xiaolin, Liang Jun and Zhao Kai still hold different shares of LETV, of which goofy holds up to 3602200 shares and Tan Shu holds at least 226400 shares.

Among the executives who increased their holdings this time, Yuan Bin resigned from LETV in July this year; Liang Jun, Gao Fei, Zhang Minhui and Jiang Xiaolin have collectively resigned from LETV in October this year; Wu Yaya left LETV on November 3 this year.