Le.com Enters 30-Trading-Day Delisting Period

Chinese online video company Le.com, or Leshi Internet, announced that it had entered the delisting period on the Shenzhen Stock Exchange from June 5, during which the trading price fluctuation of its stock is limited to 10%.

According to the announcement, a reference opening price for the 30-day delisting process that is expected to end on July 20 is 1.69 yuan. During this period, the company can apply to suspend its stock for at most five whole trading days and those days will not be counted.

SEE ALSO:Le.com Delisted by Shenzhen Stock Exchange Due to Massive Losses

At the same time, Le.com released a statement of changes in equity, which indicates a share transfer from Yingrui Huixin (controlled by Sunac Group) to Zhixin Cloud. Yingrui Huixin will transfer 100% of its Jiarui Huixin shares, which accounts for 8.56% of the company’s total share capital, to Zhixin Cloud for 0 yuan. After the equity transfer, Sunac Group will no longer hold any Le.com shares.

Le.com’s 2019 annual financial report showed that the company’s audited net profit attributable to shareholders, net profits after deducting non-recurring gains and losses, as well as net assets were all negative. The Shenzhen Stock Exchange decided to terminate the listing on May 14.

Founded by Jia Yueting in 2004, once one of the largest online video companies in China, ran into cash flow problems when its ambition to diversify its business profile outstripped its execution. The parent company LeEco also faced a series of financial setbacks in 2016 and founder Jia Yueting ventured into electric cars with Faraday Future, another controversial enterprise.