Statement Of TMTpost In Defense Against LeTV's Threat To Resort To Legal Measures Or File Criminal Charges

On the morning of November, 11th, we noticed that LeTV (SZSE: 300104) issued a clarification announcement the evening before and mentioned TMTpost s previous report “Zhao Hejuan: Will LeTV Meet Its Demise As D Long?” several times. Heated discussion was aroused after we issued the report on November, 7th. However, LeTV mentioned our report, along with two other reports (about being pressed by its creditors), in its so-called clarification statement as “some reports”.

The following is the full transcript of LeTV s clarification statement:

In response to the relevant content mentioned in the above reports, we ve conducted ASAP internal self-examination and verification, and will now clarify some details as follows:

1. Some media deliberately confused LeTV companies that have gone public and those that haven t, influenced investors with error logic and misled investors significantly. In addition, these reports were filled with ill will, and made up the fact that LeTV s press conference in the US was cast into doubt by overseas media, which again significantly mislead our investors.

2. After our self-examination, we find that our company is running properly right now, and we ve maintained a good relationship with our suppliers in all business lines. There s no such thing as LeTV delayed payment to some suppliers, delayed salaries for our employees or delayed shipment in order to raise our cash flow.

3. These “reports” deliberately defined LeTV s business model as “money begetting money” and even compared LeTV to D Long. First of all, they certainly don t understand LeTV s ecosystem; secondly, professionalism is lacking in these reports; thirdly, there s no evidence to support the malicious speculation in some report, saying that “LeTV underwent major problems in 2014”.

4. The volatility of our stock price in the secondary market has to do with various reasons, so we will resort to all proper measures, including adopting legal measures and filling criminal charges against all kinds of smears and rumors in order to protect the legitimate right of our company. Owing to the the great support of the large number of shareholders, our company gets to enjoy rapid development. We would like to give special thanks to all LeTV s fans and investors for your support and understanding. We shall continue to follow the development strategy of LeTV s ecosystem and create even more values both for our company and for our investors.

5. LeTV can be divied into three main parts: LeTV.com (public listed), LeEco Global and LeCar. LeTV.com is the foundation of our ecosystem, and its core business includes: LeTV video, LeTV Cloud and Super TV. LeTV.com s financial status of is stable and it is developing rapidly and healthily. LeTV.com s revenue in the first three quarters of 2016 doubled compared to the same period last year and reached 16.8 billion yuan (over $2.47 billion). Besides, we ve made huge breakthrough in LeTV s subsidiary business, including content, three big screens and LeTV Cloud. LeTV.com has established the most comprehensive content ecosystem in China, from movie theatre to the internet, from films and TV series to entertainment shows, from advertisement to VIP member system. Besides, we ve already sold over 10 million LeTV SuperTVs and maintained huge advantage in the high-end TV market. Moreover, LeTV Cloud, as the largest cloud video streaming platform worldwide, has already started to cooperate with various strategic partners around the world.

Since LeTV mentioned TMTpost s report and referred to our report as “spreading rumors” and “deliberately smears” in its clarification statement, which might misled many TMTpost s readers and significantly damage our reputation, we hereby issued this statement, after doing our own “self-examination and verification”, as a response:

1. About spreading rumors and smearing public listed company:

After some research, we find our report “Zhao Hejuan: Will LeTV Meet Its Demise Like D Long?” written in an objective, rigorous, balanced, rational and restrained manner. Except for some typos, there s no such thing as “spreading rumors” and “deliberate smears” in our report. All the fact and data cited in the article comes from public company s financial report, industrial and commercial system, as well as LeTV s press conference. The report is sufficient with reasoned arguments and proper analysis. After all, how can we make something “white” into “black”, and make something “black” into “white”?

2. About being "unprofessional":

TMTpost is committed to becoming one of the leading professional information service providers in TMT worldwide. “Professionalism” has always been the embedded belief at TMTpost. Zhao Hejuan, author of the report as well as one of the founders of TMTpost, has many years of experience in finance and tech news report and has thorough and in-depth understanding of the TMT industry as well as the capital market. She was even once invited by departments and bureaus related to Securities Regulatory Commission to investigate public-listed company Luoyang Hongsheng Technology over its illegal behaviors. Her professionalism, self-discipline and work ethic is a vivid example of TMTpost s stick to “professionalism”.

After some research, we find the report “Zhao Hejuan: Will LeTV Meet Its Demise Like D Long?” filled with reasoned arguments and rigorous analysis. Although LeTV and D Long have much difference, both the them proved to be masters of maneuvering capital, rely highly on financing to expand its business scale and boost its stock price and choose to “fight fire with fire” when held in trouble. Besides, founders of both companies are ambitious and skillful in maneuvering capital. It is in this sense that the author of the report compared LeTV to D Long. Nevertheless, the large part of the report is focuses on LeTV s own ecosystem and the huge pressure LeTV faced in its cash flow. Therefore, LeTV s statement that the report was “unprofessional” is ill-grounded and unspecific.

3. About confusing LeTV s public-listed companies with those that haven t:

After some research, we find that the author made it very clear about LeTV s listed and non-listed companies in the report “Zhao Hejuan: Will LeTV Meet Its Demise Like D Long?” and explicitly pointed out that “LeTV.com is used to refer to the public-listed company”. Besides, the report made it very clear when mentioning different subsidiaries under LeTV s ecosystem, so there s no such thing as confusing the two concepts. At last, we believe that LeTV has to admit there s much relationship and transaction between LeTV s publicly-listed companies and non-listed ones. This is actually one of the features of LeTV s ecosystem.

4. About the threat to “resort to all kinds of legal measures including filling criminal charges”:

LeTV.com is a public-listed company, so it should be mature and open to face public scrutiny. Being transparent and true to the public is actually one of the responsibilities of any public company, while “respecting the fact and being brave enough to voice one s own opinions” are the civil right bestowed to every citizen by this great era. After all, only public companies who are transparent and true to the public and can face public scrutiny with open mind can protect the legitimate right of investors.

5. About damaging TMTpost s reputation:

We shall also reserve any right to protect the legitimate right and legal interests of ourselves against all kinds of smears.

6. About following reports:

Up till now, we ve already accumulated thousands of excellent columnists and analysts in TMT filed at TMTpost as well as set up one of the best editorial teams in China. In the future, we shall continue to provide professional, trustworthy and readable information to our readers. As to LeTV, we shall also pay close attention to its future development and issue following reports with an objective mind, as always.

This winter will witness the fourth anniversary of TMTpost. Although the average age of our founding team is higher that most other fellow tech media, we are still basically a young company that dreams big. For the past four years, TMTpost has never dared to ease up on ourselves as to the professionalism of our report.

In the coming month, we will be busy preparing for 2016 T-EDGE Conference & BT Awards. This year s conference will be the greatest one we ve ever made, from conference design, exhibition and interaction experience to the scale of our guest speakers. We will spare no effort to make this conference one of the highest platform for leading Chinese and Western innovators to exchange ideas and thoughts. We are, as always, committed to promoting the maturity of new business force, business environment and investment environment in China, promoting change through technology and making this world a better place, even a little bit.

Stefan Zweig once said: “When gamblers who throw their lives in gambling dare to do bold things, they have full confidence in their strength and think that bold adventure is the only form, while Theodore Dreiser once said: “Real is the lifeblood of life, and is all the ground works of the value.”

TMTpost
November, 9th, 2016

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[The article is published and edited with authorization from the author @TMTpost please note source and hyperlink when reproduce.]

Translated by Levin Feng (Senior Translator at PAGE TO PAGE), working for TMTpost.