LeTV media communication meeting site map Photo courtesy of LeTV
Text/Zhao Bin
LeTV is heavily indebted, what does LeTV rely on to survive?
On September 8, the long-lost LeTV held a media communication meeting in Beijing. Li Xiaowei, executive vice president of LeEco Smart Ecosystem, and the head of LeEco's marketing department responded to the hot issues that some netizens were concerned about at the meeting, not only involving the ridicule of netizens that "LeEco lives by " Zhen Huan Zhuan " and rent", but also how much debt, How to pay, and whether Jia Yueting has anything to do with LeTV, and sensitive topics such as when he will return to China.
LeTV introduced the layout of intelligent ecological business at the communication meeting, and said that it would like New Oriental , through "pragmatic efforts one step at a time", to achieve its rise again.
wants to "regenerate from the ashes" and achieve "Nirvana", is it possible for LeEco, and what is left?
What does LeTV rely on to live and how much money does it owe?
Recently, LeEco employees are living a fairy life without a boss, and the topic of no 996 and no introversion has caused heated discussions on the Internet. There are even claims that LeEco employees are supported by the hit drama "The Legend of Zhen Huan" and rent. In this regard, LeTV denied this claim.
The head of LeTV's marketing department responded that actually brought less than 5% of the revenue to LeTV from "The Legend of Zhen Huan", , counts Lerongzhi's new revenue, accounting for less than 2%. In addition to "The Legend of Zhen Huan", LeTV also has many well-loved and highly popular dramas such as " Miyue Biography ", " Bailuyuan ", " Red Sorghum ", and a total of 29 new dramas. The person in charge of
also said that , the rent brought to LeTV last year only accounted for 6% of the income. Le Rong Building, the LeTV headquarters building, is now half used for self-use and the other half used for rental. But the occupancy rate of the rental part is not high, only half is rented out, and the other half is actually empty.
LeTV also claimed that it is absolutely true that it has never owed employees a penny of wages or social security expenses. 45% of the employees are more than 5 years old, and there are more than 20 employees who are more than 10 years old.
LeEco believes that it is precisely because of LeEco's stable talent echelon and the persistence of old employees that LeEco is more resilient.
According to reports, LeTV video and LeTV TV have their own membership and advertising revenue, which is a traditional revenue that has lasted for many years and is also the main source of revenue for LeTV. LeTV video currently has MCN, applet and other revenue from cooperation with other third parties, and LeTV TV has smart hardware revenue.
Li Xiaowei, executive vice president of LeEco Smart Ecosystem, speaks at the communication meeting Photo courtesy of LeEco
Li Xiaowei said that LeEco hardware is still in a state of slight loss. The purpose is to create "extreme cost performance" and increase the market share of hardware terminals, so as to focus more on realizing the layout of LeEco's intelligent ecology after three years.
China News Service Guozhi asked LeEco in the communication link: how much debt LeEco still has, and whether there is any specific repayment plan, such as how much of the profit is used to repay the arrears and other plans.
LeTV did not give a direct answer to the repayment plan, but said: "The money needs to be repaid little by little", and it will face up to the historical debt. The specific repayment plan of needs more considerations and cannot answer for the time being. LeTV emphasized that since 2018, they have not added a cent of debt to LeTV and Lerongzhixin, which they currently operate.
As for LeTV's current arrears, LeTV has not responded directly, but said that it can check LeTV.com as a reference for the latest financial report data of the listed company.
According to LeTV's annual report last year, as of the end of 2021, LeTV's liabilities totaled 22.065 billion yuan, and historical debt interest expenses reached 460 million yuan. In the first quarter of 2022, LeTV achieved a net profit of -120 million yuan attributable to its parent company.
no longer talk about big dreams, ensure the safety of funds and do business
At the communication meeting, a new HR "Little Fat" who claimed to have joined LeTV for three months called Jia Yueting "the one on the other side of the ocean" in the warm-up talk show. Great man'".
How does LeTV currently evaluate Jia Yueting?
To this, the relevant person in charge of LeTV responded, "This is a talk show, a joke, an employee's own statement, not an official statement." He also introduced the current relationship between LeTV and Jia Yueting.
The above-mentioned person in charge said that in the spring of this year, Jia Yueting transferred the shares of LeTV to the current four natural persons. Jia Yueting owns the ownership of LeTV, and the right to use it has actually been transferred to the senior management of LeTV. Jia Yueting has not participated in the operation of LeTV, but he Still the founder, this is an undeniable thing.
According to Li Xiaowei, the main body of this event is LeTV and Lerongzhixin. All super TVs, mobile phones, video content, smart ecology and other businesses are also owned by these two companies, and have nothing to do with other companies. "For example, LeTV Holdings belongs to President Jia (Jia Yueting)."
talked about the rise and fall of LeTV. A relevant person in charge of LeEco believes that everyone knows that Mr. Jia (Jia Yueting) has a big dream, but it suddenly collapsed. The reason is that the capital chain is not well controlled. One of the things that LeEco is deeply reflecting on now is whether the capital chain has been properly controlled, which determines LeEco's business, everything it does, and every strategy is very pragmatic, and will not talk about anything grander s things. LeTV will be very pragmatic and will do business step by step while ensuring the safety of funds.
New Oriental brought inspiration, and firmly believed that it would be successful again. At the
meeting, LeTV said that the success of New Oriental gave them great encouragement. LeTV's Pinxuan account has more than 2 million fans on the video platform and has its own live broadcast room. Employees can endorse LeEco's own products and bring goods in the live broadcast room. firmly believes that LeEco's "extremely cost-effective" powerful products can make LeEco as successful as New Oriental.
New Oriental succeeded by live broadcast amid doubts about "teacher selling vegetables". Orient Selection recently topped the top Douyin hot search with a bilingual live broadcast mode, and its stock price once rose from HK$3.7/share to HK$33.15/share, making it a double-material “top stream” in e-commerce live broadcast and capital market. New Oriental's core business capabilities have been integrated and reused.
uses cultural heritage and knowledge reserves to "sell", with content but not too deep and boring; in the live broadcast room, there will also be an enthusiastic host playing piano professionally, with inspirational feelings. Combining two disparate things ingeniously creates something new that resonates with most people.
And how does LeTV compete with New Oriental, and how can it achieve the same success and achievements as New Oriental?
It is understood that LeTV made the last layoff in the fourth quarter of 2019, and at the beginning of the epidemic in 2020, all staff reduced their salaries, and began to "pursue profits and cash flow ", and implemented "survival as the main program".
Take the TV business as an example. Compared with 2019, in 2020, revenue will drop by more than 30%, gross profit will increase by more than 60%, and gross profit margin will increase from 14% to 35%; in 2021 and 2022, the revenue scale will decrease by an average of 15% , but the gross profit margin remained basically unchanged, and the financial situation improved for three consecutive years.
Li Xiaowei said that LeTV's upstream 12 million terminals are used in the hands of market customers, which are their resources; excellent products, extreme cost performance; scientific and pragmatic layout, stable talent echelon, all of these may be the capital or foundation for the re-emergence of LeTV .
We can't clearly see LeEco's core competitiveness and the "colorful wings" like the rebirth of the phoenix. Can LeEco, which has returned to the public eye under the epidemic, can be reborn from the "remaining ashes" of debts and lawsuits? ?
from: the country is straightOpen to traffic
Editor: Chen Haoxing
Editor in charge: Wei Xi
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