Shenzhen Stock Exchange Questions Leshi's Advanced Loan Repayment to Jia Yueting
Liao Shumin
DATE:  Sep 13 2017
/ SOURCE:  Yicai
Shenzhen Stock Exchange Questions Leshi's Advanced Loan Repayment to Jia Yueting Shenzhen Stock Exchange Questions Leshi's Advanced Loan Repayment to Jia Yueting

(Yicai Global) Sept. 13 -- The Shenzhen Stock Exchange sent a letter to Leshi Internet Information & Technology Corp. [SHE:300104] (Leshi) yesterday expressing its concern about Jia Yueting's financial commitments to the company.

In recent years, Jia Yueting and his sister Jia Yuefang reduced their holdings in Leshi several times and made commitments to loan the proceeds to Leshi interest free.

When they sold their Leshi shares in 2015 and 2014, they promised to loan all the proceeds from the sale to Leshi interest free to support the group's operations. Their commitments had terms of validity of at least five years, per disclosures the firm released October 30, 2015 shows.

Leshi repaid USD66 million (CNY430 million) and CNY2.6 million to Jia Yuefang and Jia Yueting, respectively, per the other noncurrent liabilities column of the interim report the company released last month. The company has completely paid off the loans from Jia Yueting and his sister.

Regulators at ChiNext, a NASDAQ-style board of the Shenzhen Stock Exchange, required Leshi to explain the time, amount and reasons for repayment to Jia Yueting and whether he breached his commitment.

Over the past three years, Jia Yueting's proceeds from sales of Leshi holdings were CNY5.7 billion, excluding the CNY6 billion worth of shares he transferred to Sunac China Holdings Ltd. in January. Since making a loan commitment to Leshi in December 2014, Jia Yuefang reduced her stake in Leshi by 2.37 percent. Her loan commitments amounted to at least CNY1.678 billion.

During the same period, Jia Yueting's loaned Leshi at most CNY2.5 billion, and Jia Yuefang loaned CNY1.4 billion.

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Keywords:   Leshi Internet Information And Technology Co.,Shenzhen Stock Exchange,Concern,Commitment,Jia Yueting,Interest Free Loan