LeTV CEO Liang Jun. Beijing News reporter Wu Jiangshe

LeTV CEO Liang Jun: We are short of money now

When Liang Jun accepted the interview, he admits the challenge, not only to do business but also to consider the funding problem; it is said that LeTV can now use a limited amount of funds.

When you meet Liang Jun, you must first pass through the tent gap built by the debt collectors on the first floor of Leshi Building. This kind of scene is the current CEO of LeTV. Liang Jun has to deal with it every day.

"Jia Yueting pays back the money, and LeTV pays back the money." Every time after work, the high-decibel loudspeakers will last for nearly an hour. The girl at the front desk is free to work in the noise of high decibels, and Jia Yueting, who is called by the debt collector, will go to the 16th floor of the LeTV Building. Today, she has not returned to the country for more than 70 days.

Liang Jun’s office is on the 15th floor of Leshi Building. It was just moved to the new office last week. There is not much decoration except two tables. "I don't care about the image right now, I want to do business well."

Liang Jun, who took over the role of CEO of LeTV from Jia Yueting, has officially took office for nearly four months. As a professional manager, he has been doing the cutting of LeTV and Jia Yueting, and will be LeTV's listed company system and non-listed company. System cutting. Before accepting an exclusive interview with the Beijing News reporter, Liang Jun had a business trip for ten consecutive days, and met with LeTV's new suppliers and rebuilt trust.

In addition to "cutting", Liang Jun will also lead the new music as a forward. Liang Jun lamented that there was no money. Jia always thought of a way. Today, we not only have to do business, but also consider funds, which is a challenge for me.

Lack of money has always been a problem for LeTV. LeTV CEO Liang Jun did not evade this when he accepted an exclusive interview with the Beijing News on September 13. It is worth recalling that on January 15th, Sun Hongbin’s strategic investment in LeTV once said that LeTV’s only problem is the lack of money, and the lack of money is easy to handle, and it must solve the problem of lack of money in LeTV’s non-automobile business.

Join LeTV in five years and experience great changes

In the face of today's LeTV situation, Liang Jun said, "I want to do my best. Either have a good attitude, or sleep with sleeping pills."

"Returning to China Jia Yueting next week", this is a teasing of Jia Yueting on social networking sites. Jia Yueting went to the United States to this day, more than 70 days passed. This left a mess for the successor Liang Jun. Before accepting an exclusive interview with reporters, Liang Jun has been on a business trip for ten consecutive days, visiting TV providers across the country to eliminate as much as possible the distrust of LeTV.

In the face of the past, in the face of the intricate "cutting" work, Liang Jun said quite well, "I want to do all my strength. Or I have a good attitude, or sleep with sleeping pills." A LeTV executive next to the fun, said from Jia Yueting I left Hong Kong in 2014, and now I am away from the United States. It is like a few years of work in LeTV. Liang Jun said with a smile that it is not so exaggerated. LeTV's five years is equal to Lenovo's 10 years.

Before joining LeTV in 2012, Liang Jun worked for Lenovo Group for 17 years. Joining LeTV is his first time to change jobs.

Liang Jun once said that he graduated from graduate school and entered the Lenovo, witnessed the most brilliant process of PC from 1995 to 2000, and later was responsible for Lenovo's server business. "Lenovo's server business is actually built by me. I did the server business for about seven or eight years. Inside Lenovo, I jumped into the mobile phone business in 2007 and did it for a few years. Although it is on the mobile Internet, it still remains. Around the hardware."

"I am a relatively different company in the company, I am very eager to have a chance to understand how the Internet company is doing." Liang Jun introduced. In 2012, he joined LeTV under the inspiration of Jia Yueting, this is his first time to change jobs. In this regard, Liang Jun admitted in an interview that he is also a person who is restless.

In the music of the seven sons of Le Yue, which was previously built by Jia Yueting, Liang Jun occupied a seat and made a super TV business. On Super TV, LeTV completely gave up the gameplay of others and re-created new rules and gameplay according to their own ideas. Free hardware is the consistent idea of ​​LeTV products.

Le Shizhixin (mainly super TV) is also a relatively high-quality asset in LeTV, and Liang Jun also stands out from the seven sub-ecological leaders.

A person working at Liang Jun said that Liang Jun was steady and mature. According to public information, Liang Jun was born in 1970, and Sun Hongbin was born in 1963. "He and Sun Hongbin and Zhang Zhao are actually the communication methods of adult men. I believe that to be good at themselves, not to whitewash the data, the people of that generation have resonated in many values."

And Jia Yueting communicated over 70 days, counting the "old account"

Liang Jun said that Jia Yueting is looking for suitable assets to repay listed companies.

Although it has not been returned for more than 70 days, LeTV's 3.8 billion accounts receivable has made Jia Yueting a "requirer" who is not present.

In the inquiry letter on May 5, the Shenzhen Stock Exchange pointed out that in 2016, the company changed the sales mode of Super TV. LeTV's related party transactions increased in 2016, and the balance of accounts receivable of related parties reached RMB 3.8 billion.

"I haven't seen him in 70 days. Communication is definitely there. Jia is still active in dealing with related party transactions. The core is that he has the ability to repay and find the right assets to repay the listed company. Now it is in progress, the CSRC I am more than you are actively pegged to solve the problem. As long as it is finished, there will be a formal announcement," Liang Jun told the Beijing News.

In the face of huge connected transactions, accounts receivable are in danger of being uncollectible. In a sense, LeTV has also become the creditor of companies such as LeEco Holdings. The calculation of "old accounts" became the work of Liang Jun.

Regarding the progress in the processing of arrears in related party transactions, Liang Jun said, “I think Jia is still quite active, but he is now lacking in cash. Looking for various assets in the entire non-listed system to see if he can fill the gaps in debt, now I am doing it, but we have not completed it, there is no announcement, so I can't speak."

"We have a whole set of plans, that is, the freezing of China Merchants Bank has completely disrupted the whole plan. It turns out that there are actually steps. At the end of June, everything is different. Jia is also adapting. We are also adapting." . Liang Jun said.

"Recovering the money from connected transactions is the primary issue."

"I have to be responsible for sitting in this position, although this money is not necessarily caused by me."

LeEco's capital chain crisis began with mobile phones.

In fact, Sun Hongbin's strategic investment is only LeTV, Leshizhixin, LeTV, and does not involve LeTV's non-listing system. However, the connected transactions between listed and unlisted companies have become a difficult problem for Liang Jun.

"Affiliated transactions are not things that seem unspeakable, but the actual controller is a person. When it is handled, it will be more sensitive to fairness. If it proves fair, others will also show risks in the case of possible unfairness." Liang Jun said.

After the related party transactions rose, the huge amount of accounts receivable was not recoverable.

"In order to avoid such problems in the future, we will cut off the related transactions and separate them. The second is that the core of the related transaction processing is that the money will come back. If there is no asset processing solution, the listed company will lose the least. ", Liang Jun said.

In May of this year, Liang Jun took over from Jia Yueting as the CEO of LeTV. He regained the offline sales rights of LeTV from LePar to Leshizhixin, and realized the integrated operation of LeTV TV production and sales.

Liang Jun said that it was originally all the products in LeTV's non-listed company to sell the LeTV system. At the time, it was also true that it was impossible for every company to get a website and a sales team. Today, after dealing with difficulties and changes in the shareholding structure, there must be a closed sales team for listed companies.

"The biggest problem between listed companies and non-listed companies is related party transactions. Whether it is for the CSRC, the exchange or the shareholders, I have to be responsible for sitting in this position, although this money is not necessarily me. What caused it, but to recover the money from the related party transactions, this is the first problem to be solved," Liang Jun said.

“Not only to do business but also to consider funding issues”

Liang Jun admits that LeTV.com has a limited amount of funds that can be used. He has rarely been involved in financing in the past. He has recently paid attention to financing issues.

Sun Hongbin claimed to have suffered from the loss of cash flow and knew the importance of cash flow. But now, LeTV's cash flow also poses a challenge to the successor Liang Jun.

"The old man helped us, and there was no money. Jia always tried to find a way. Today, we must not only do business but also consider funds, which is a challenge for me," Liang Jun said.

According to the financial report, as of the end of June, LeTV had a book currency balance of 2.98 billion yuan, but the bank deposit balance was frozen 29.09 million yuan, and the TCL multimedia holding equity merger and acquisition project guarantee was 2.151 billion yuan. This means that LeTV can use only about 800 million yuan in cash.

Faced with this long string of financial data, Liang Jun said that these figures are a challenge for him. In his minds of product development and operation, he remembers all kinds of data related to television.

Liang Jun’s view on cash flow is that 2 billion of them are actually internal insurance loans, which are to be sent to banks. The amount of funds that LeTV can use now is indeed limited.

“I really want to pay attention to the cash flow now. I want to strengthen the teams with the ability to collect and sell business. The Internet business needs a long time to collect money. The cash flow will drag on for a long time. In the past, when the financial pressure was not big, an advertisement 3-6 The monthly payment is normal, but we now hope to recover it in one to two months," Liang Jun said.

Liang Jun said that there were relatively few financings involved in the past, but in the past two months, he has to pay attention to issues such as bank financing and equity pledge.

The old Jia in the mouth of Liang Junkou is no longer responsible for the business of the listed company, but it has become a key figure in the Lexun network encounter with the Shenzhen Stock Exchange.

On September 12, the management department of the GEM of the Shenzhen Stock Exchange sent a letter of inquiry to LeTV. It said that it is highly concerned about the performance of Jia Yueting's commitment to reduce funds, and asked LeTV and Jia Yueting to explain the relevant issues.

The letter of concern shows that on July 27, 2015, LeTV.com announced that Jia Yueting promised to lend all the funds for the reduction to the listed company. Within six months from the date of receipt of the repayment of the listed company, Jia Yueting will repay the funds. All used to increase the share of LeTV. However, LeTV's 2017 semi-annual report shows that the company has returned all loans to Jia Yueting.

Regarding Jia Yueting’s promise, Liang Jun said, “With a more official but true statement, the exchange is asking what is going on. This is a sensitive issue. I can’t talk now. I have to understand the details at that time. I haven't had time to look at the past for more than two months, but to keep the current advance, let the company stabilize first, and this is more stressful."

Change mode, no longer burn money

Liang Jun said that we are short of money now, we must change our minds when we want to do business.

On the eve of the 9th 19th Fan Festival, on September 12th, LeTV opened a new online conference, which is the first time that LeTV has tried online publishing.

"We are short of money now, we have to change our minds when we want to do business," Liang Jun told the Beijing News. This is the first 9·19 after LeTV’s crisis. Unlike the past, this music is more focused on the use of Lepa and TV as a promotional channel. In addition to accurate positioning and notification purposes, this approach can also reduce the market. Marketing costs.

Liang Jun bluntly said that in 2018, it is certain that the entire operation will no longer burn money.

Unlike traditional TV manufacturers, smart TVs usually adopt a low-cost or even negative-price pricing strategy. The main sources of revenue are membership fees and other application charges and advertising charges.

In order to attract paid members, video platforms often smash copyrights and compete for head resources. This kind of copyright white-blade warfare is more obvious on the mobile side, but around the family living room economy, the copyright war on the TV side is more rational.

In Liang Jun's view, in the past, LeTV relied more on LeTV's own heavyweight exclusive content to drive the entire sale, and the TV business also drove a lot of members. Nowadays, the installed capacity of the mobile industry in the video industry is already saturated. The competition for members is mainly for the content of exclusive content. Iqiyi and Tencent are hugely buying exclusive content.

"It is not realistic to rely on a lot of purchases for today's music." In Liang Jun's view, LeTV's TV business has also been affected in this storm, but it has already received 10 million user possessions, four hundred per day. The number of users from ten to five million. Secondly, LeTV Pictures, although LeTV has not yet been installed in listed companies, homemade content is always valuable to the video industry, and more and more important. In addition, from the beginning of 2012, LeTV video on the cloud platform to try to do live broadcast business, in fact, is also preparing for the TV business.

At 5:30 pm on the day of the interview, the supplier who came to the debt collection on the first floor of LeTV Building once again turned on the tweeter. The sound of the harsh "LeTV payback, Jia Yueting pays back" sounded again.

A LeTV-based executive said that Sun Hongbin had the same experience when he handled the Sunco crisis. Sun Hongbin had seen everything. This time, Liang Jun admits that he has experienced such a big scene.

Liang Jun, the leader of LeTV, said, "I don't care about the image right now. I want to do business well because all external performance comes from inside." Liang Jun said, "The last thing is to see you. Whether the company itself can get out of the predicament and restore health, some things are seen as if they have not seen it."

â–  Conversation

Liang Jun: LeTV is re-learning "doing business"

LeTV is bidding farewell to the money-burning model, and is doing the same while doing business.

Beijing News: LeTV has been losing money since its inception, and LeTV's online financial report has also become a loss. How to make a profit?

Liang Jun: The core reason for our loss this year is that we have to pay for the whole storm and negative. Our users, consumers and channels are largely on the sidelines. This process of wait-and-see has a direct effect, which is the decline of our performance. . In fact, we are psychologically prepared.

The Beijing News: How long will the decline last?

Liang Jun: From the current strategy, we hope to make some adjustments in 2017 to prepare the team and strategy for 2018. I think this is more realistic. Brand repair, recovery of user confidence, recovery of upstream supply chain, recovery of downstream channels, and the surrounding public opinion need a process for the recovery of word of mouth. However, the good point is that although there are a lot of negatives outside, but in general, the user reputation we detected, the TV for the family is OK. LeTV is striving to provide more content. Through the TV system search, you can see many TV dramas, movies, etc. that are not provided by LeTV.

The operational pressure we are facing now is not just LeTV. It is the same as TV business and movie business. LeTV is an ecological company and is affected by the market.

The first and foremost thing is to determine what the future strategy is. The second is to let the team go out of the current situation. Just like the smile curve, you need to have a bottom process, not to fall down and get up. I myself estimate that 2018 must be asking the entire business to stop burning.

After the strategic adjustment is over, the next one is the management adjustment, so that everyone can start learning how to operate, how to make this company less loss, no loss or even profit when resources are limited. (GEM stocks will be directly delisted for three consecutive years of losses), and LeTV should not be delisted. Then we will become sinners, and Chinese capital market investors will not accept it.

Beijing News: Do you think this will happen?

Liang Jun: We certainly can't let this happen.

The Beijing News: Sun Hongbin said that LeTV lacks people who really understand business.

Liang Jun: I think it makes sense. We are training to shift from the past money-burning model to today's business while spending the same amount of money – see how many capabilities there are. Business is that you have a dollar to make a dollar, no money to do business, you can not hungry to do business, it is called rice.

I think Sun Hongbin’s lack of people who can do business actually requires the management team to learn how to operate healthily and have healthy cash flow. It is not that we cannot borrow from banks or finance, but we must see the capital market assessment of a company. Good or bad, his core is to look at operating cash flow and operating profit and loss.

Beijing News: What adjustments should the team focus on?

Liang Jun: The first is to face and solve the problems of the past. The second is to face the (things) strategy (adjustment) that we will do after 2018. At the same time, we must learn how to strengthen management and control in the process of business management, cash flow, cost control and so on. From the overall timeline of LeEco, we have encountered great challenges and difficulties after we have been blindfolded for a while. Let's slow down a bit today, we do have some damage. A company can not be supported by financing for a long time. It depends on the normal operation of the business and healthy cash flow. This is a test for the team. If you can't pass the problem, the company will have problems. We don't have any retreats, we can only clench our teeth and lead the team through this difficult period, let the company learn to operate.

Beijing News reporter Liu Suhong

Enter [Sina Finance and Economics Unit] Discussion

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