(Chinese Version)

LeEco's listed unit Leshi Information & Technology Beijing announced yesterday in a bulletin that the company had approved the Resolutions on Major Asset Restructure and Share Suspension Time Period at the second unscheduled shareholder meeting. The company has filed application to Shenzhen Stock Exchange to expand its share suspension from July 18th 2017 to no more than three months. According to the statement, the total suspension period will not exceed six months.

Leshi’s asset restructure this time involves another subsidiary Leshi Film. At present, LeEco Holdings holds 21.81% of Leshi Film’s shares as the largest shareholder, with Jia Yueting as the actual holder. Tianjin Jiaruihuixin Corporate Management holds 21% of the shares as the second largest holder.

The asset restructure solutions mainly include: the number of Leshi Film’s holders will surge to 46, while the number of counterparties will increase to 46 as well; Leshi Film’s asset trading value is expected to decrease, but the exact number is still unclear; pricing benchmark date will be reset; the fundraise amount will be adjusted etc. The modified restructure solutions will require further negotiation and confirmation with the counterparties. Leshi’s board will discuss and assess relevant matters after the company and the counterparties sign a new agreement.

At present, the restructure solutions are still under negotiation and debate. The pricing benchmark date will be reset only when the ultimate solution comes out. Agencies will then start their procedures and investigate, assess the solution, and draft relevant documents.

Leshi promised to apply for relisting and reveal relevant details if the company failed to hold a board meeting to assess and decide on restructure solutions during the extended suspension period. The company would also announce whether to push the restructure further and the possible impact on the company. If the company decided to terminate the restructure, or the company applied for relisting and continued the restructure while failing to reveal the final restructure solution, eventually resulting in the termination of the restructure, the company will not plan on major asset restructure moves for two months after the company announces the termination.

Leshi Information & Technology’s unscheduled shareholder meeting was held on July 17th. Potential board chair candidate Sun Hongbin, Liang Jun (also CEO of the company), Zhang Zhao (Leshi Film CEO), and CFO Zhang Wei etc. attended the meeting. LeEco’s founder Jia Yueting was absent.

The meeting only lasted for 15 minutes, during which four resolutions were discussed. After the meeting, Liang Jun and Sun Hongbin etc. answered questions from some shareholders and media outlets.

It’s expected that a board meeting will be held to elect a new board chair after the unscheduled meeting. That said, Leshi Information & Technology remains leaderless now.

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Translated by Garrett Lee (Senior Translator at PAGE TO PAGE), working for TMTpost.