Several members of the former appraisal committee were checked and watched as IPOs were onlookers

After experiencing a debt crisis and continuous decline in performance, LeTV has encountered storms. Recently, it was reported that involving the IPO audit of LeTV in 2010, a number of former members of the Board of Entrepreneurs were forced to take measures, including Xie Zhongping, deputy director of the Asia Pacific Group Certified Public Accountants, and Sun Xiaobo, deputy general manager of Beijing Tianyuanquan Certified Public Accountants. .

The reporter made multiple verifications and confirmed that at least one member of the pre-approval committee that had reviewed its IPO has been investigated. Regarding Xie Zhongping's investigation, the person he was serving at the Ericsson Certified Public Accountants who declined to be named expressed yesterday to the Beijing News reporter that “he was asked to assist in the investigation, but this matter has nothing to do with Ericsson. It was the Asia Pacific Group accounting firm’s past”. .

A staff member of Tianquanquan Certified Public Accountants told the Beijing News reporter that Sun Xiaobo has not yet left the company but has not appeared in the firm recently. The reporter tried to contact Sun Xiaobo, who was in a state of shutdown.

According to reports, after years of continuous "charging", Sun Xiaobo has many professional qualifications such as CPA (CPA), CPV (Registered Asset Appraiser), and CTA (Certified Tax Agent). He has served as a member of the third session of the GEM Board.

At the same period, a member of the issuing committee stated that he was innocent

The "Financial Affairs" report said that the number of personnel involved exceeds 10, which makes other members of the issuing and auditing committee of the same period also received "concern". During the same period, Wang Yuehao, a member of the Board of Auditors, told the Beijing News reporter that no supervisory department or individual had informed him about the LeTV IPO project. He did not violate the regulations, met with project related parties, and did not collect any property. For Xie and Sun, Wang Yuehao told the Beijing News reporter that "for many years there was no connection, not the same unit. We do not understand Xie Zhongping and Sun Xiaobo."

The incident originated from LeTV's IPO review. A person close to LeTV said that LeSport executives have not heard any inquiries from relevant departments and no department has come to understand the situation.

Xie Zhongping appeared several times in Huijin Cube's shareholding company

The official website of the China Securities Regulatory Commission shows that in addition to being the auditing member of the LeTV IPO project, Xie Zhongping and Sun Xiaobo are members of the Issuing Committee of Oriental Sunrise and Shenzhou Taiyue.

According to public information, LeTV, Oriental Sunrise, and Shenzhou Taiyue have a common shareholder, Huijin Cube. Public reports showed that the Beijing Huijin Cubic Investment Management Center’s actual control was completed.

From the perspective of time, Huijin Cubic shares the above-mentioned company, and it has "assaulted" shares.

According to the prospectus, Huijin Cube was established in August 2008. In August 2008, Huijin Cube invested 20 million shares in LeTV. In 2010, LeTV became an online market. In August 2008, it entered into the shareholder Fang Risheng. In 2009, it increased its holding to 4.1171 million shares. In September, Oriental Daily went public and listed; in May 2009, Huijin Cube held a stake of RMB 3.564 million and held 2.7 million shares. In October 2009, it was listed on China Taiyue. The first day's closing price was RMB 102.9. The stock price in 2010 was Break through 200 yuan.

Li has been accused of helping LeTV City

This is not the first time that LeTV IPO has introduced "onlookers." In 2016, the Yangzhou City Procuratorate of Jiangsu Province has charged that Li Liang, the former director of the Investor Protection Bureau of the China Securities Regulatory Commission, has provided assistance for companies such as LeTV.com.

In 2014, Li Liang, director of the Investor Protection Bureau of the former SFC, was investigated by relevant departments. On November 10, 2016, the Intermediate People's Court of Yangzhou City, Jiangsu Province held a public hearing in which the former director of the Investor Protection Bureau of the China Securities Regulatory Commission Li Sheng accepted bribery.

According to public information, the People's Procuratorate of Yangzhou City, Jiangsu Province, accused that from 2000 to 2012, the defendant Li Liang took advantage of his post as director of the issuance and verification department of the China Securities Regulatory Commission's issuance and supervision department and deputy director of the GEM issuance supervision department. Nine companies including LeTV Information Technology (Beijing) Co., Ltd. and other 9 companies applied for public offering of stocks or to provide assistance for listing. From 2000 to 2013, they received the property provided by the above-mentioned company's investors, amounting to a total of RMB 6,936,260,400. Draw criminal liability for Li for penalties for bribery.

During the trial, Li Quan made a final statement and pleaded guilty in court to repent. In the above case, the fact that LeTV.com paid bribes for listing became evidence of the prosecution's allegations.

However, LeTV said in a subsequent statement that “the company’s and company’s existing major shareholders and company management are not related to this matter and will not be affected.”

LeTV Online Market is being questioned: data conflict

In August 2010, LeTV.com was formally listed on the Growth Enterprise Market. The listing prospectus of LeTV.com stated that the main business of LeTV.com is high-definition video on demand and video advertising.

As the first listed A-share video website, LeTV's online trading price exceeds the issuance price by 60%, close to 50 yuan, and the market value on the first day of listing reaches 4.4 billion yuan. At that time, Kuliuwang, the same body quantity, went to the United States to go public and the market value did not exceed 100 million U.S. dollars.

"Leif not known" LeTV, how to profit? Become the focus of market attention.

According to the LeTV.com prospectus, from 2005 to 2007, LeTV.com's revenue was 0 yuan, 17.44 million yuan, and 36.91 million yuan, respectively, and net profit reached 14.69 million yuan in 2007, turning the company into a profitable loss; the company's 2009 revenue It reached 134 million yuan and net profit 44.12 million yuan.

In August 2010, according to Alexa's data, LeTV ranked 125th in domestic website traffic rankings, Youku ranked 10th, and Tudou ranked 12th.

Youku, a potato at the head of the traffic, is still losing money on "burning money." LeTV, an "unknown," has already made a profit of 10 million yuan.

According to the prospectus, LeTV's main source of income is high-definition video network service revenue, which accounted for 85.56%, 71.78% and 54.96% of its main business revenue in the past three years. LeTV's network high-definition video service revenue mainly comes from individual paying users.

At that time, some market participants questioned that LeTV.com repeatedly emphasized in the prospectus that in 2009, the company's monthly average monthly active paid users reached more than 300,000. Based on this, the company’s 2009 revenue from individual paying users was as high as 108 million. Yuan, but the 2009 HD video service revenue was only 73.55 million yuan.

Not only that, after LeTV's successful IPO, its financial report has also been questioned.

On June 23, 2015, Liu Weiwei, a well-known financial expert, published the LeTV Network Analysis Report. The article points out that LeTV's 2014 annual report disclosed the revenue structure of its main business, but did not disclose the profitability of various businesses as other listed companies did.

According to the accounting standards, the company's board of directors should introduce the operating conditions during the reporting period, including: according to the industry, products, and regions, the company's main business income during the reporting period, the main business profit composition.

The 2014 annual report of LeTV.com clearly violated the above regulations, did not disclose the composition of profits from the main business, and did not specify the source of operating profits.

â–  Extension

Ping An Securities Sponsor Underwriting Sponsor Fee 36 million

According to public information, Ping An Securities is the sponsor institution of LeTV IPO. Beijing Xinli Law Firm and Reanda Certified Public Accountants are LeTV's IPO intermediary organizations.

In respect of profit, Ping An Securities obtained “remuneration” during the sponsoring process of LeTV. Underwriting 36 million sponsorship fees, Beijing Xinli Law Firm collected legal fees of RMB 700,000, Reanda Certified Public Accountants collected audit fees of RMB 700,000, and disclosed information. The relevant media received information disclosure fees and road show promotion fees of 12.1 million.

Wang Jiasheng is responsible for the sponsor representative of LeTV IPO. According to media reports, from 2009 to 2011, Wang Jiasheng as the sponsor representative was responsible for five single IPOs for two years, and the total underwriting amount was 700 million yuan, with a total of 213 million yuan in sponsored income. He was dubbed the "Gold Medal".

The Ping An Securities where the gold medalist was located had a lot of success in the investment banking market from 2009 to 2011. At the time, he was the general manager of Ping An Securities and Xue Rongnian, who was in charge of investment banking, was once regarded as a "legendary figure."

From a performance point of view, before and after 2006, the number of Ping An Securities underwriters was only a few. By 2007, the number of underwriting increased to 23, and by 2011, Ping An Securities ranked first in the industry with 34 underwriters. The main underwriting amount reached 29.795 billion yuan, ranking second in the industry, second only to the 32.343 billion yuan of CITIC Securities.

However, the safe underwriting team led by Xue Rongnian was also questioned by the issue of radicalization and risk control. Wan Fusheng and Hai Lianxun’s financial falsification were all sponsored by Xue during his tenure. At the end of 2011, Xue Rongnian “resigned for personal reasons” and was approved.

â–  Lawyer statement

"If false, it may be withdrawn from the market."

A Beijing-based securities lawyer said: "Now we cannot judge the impact. If the Securities and Futures Commission determines that LeTV's major violations, then LeTV will face delisting."

The "Several Opinions on the Reform, Improvement, and Strict Implementation of the Delisting System of Listed Companies" published by the China Securities Regulatory Commission in 2014 clearly stipulates the major violations of law and the company's mandatory delisting system, and suspends the listing of fraudulent issuing companies. Prior to this, the first shares of the GEM delisting “Xintai Electric” were punished by the Securities and Futures Commission for delisting due to IPO financial fraud.

The said lawyers stated that if LeTV.com.cn is delisted due to punishment, in the confirmation of the China Securities Regulatory Commission, the intermediary of the sponsor institution and the law firm shall bear the liability. Then the investor may apply for a claim from the said institution. In the case of Xintai Electric, Industrial Securities (7.740) , -0.09,-1.15%) pays in advance and sets up an investor compensation fund.