After several twists and turns, the assets of LeEco Holdings (Beijing) Limited (hereinafter referred to as LeEco Holdings) were recently auctioned again by the judicial auction.
On the morning of October 27, Ali Auction Network information shows that the auction of 14.2991% interest held by LeTV Holdings in the shareholders of Da Sheng Technology Company Limited (hereinafter referred to as Da Sheng Technology) ended with the participation of only one bidder, and the final bid was successful, and this sole bidder is the Guangzhou Automobile Group (601238.SH).
Qixinbao information shows that Da Sheng Technology was established on June 8, 2016, with a registered capital of $559,477,121,000, the legal representative is Hu Su, and the shareholding structure is 45% in GAC Group, 15% in Zhongcheng Auto Insurance, 14.2991% in Le Vision Holdings, 14.0187% in Guangdong Province Science and Technology Venture Investment Company Limited, 14.0187% in Galaxy Yueke (Guangdong) Industrial Investment Fund (Limited Partnership) holds 5.8411% and Guangdong Yueke Jia Du Venture Investment Center (Limited Partnership) holds 5.8411%.
At the time of its inception in June 2016, Dasheng Technology had only three initiating shareholders, namely GAC Group, LeEco Holdings and Zhongcheng Auto Insurance, with 45%, 40% and 15% shareholdings respectively. According to the information at the time of the press conference, the board of directors of Great Saint Technology consists of five people, namely, “GAC Group executive vice president Feng Xingya as chairman, GAC Group’s e-commerce project preparation team leader Zheng Jingliang as CEO, LeTV Automotive vice president Lv Zhengyu, LeTV Mall head Zhao Yicheng, Zhongcheng Insurance CEO Wu Baojun as a director.”
According to the original intention at the time, Da Sheng Technology was to “build a customer experience-centric, all-platform, all-content, all-application, all-terminal one-stop automotive consumption platform and build an open automotive Internet ecosystem,” but Da Sheng Technology seems to have gone silent since then.
GAC Group’s 2019 annual report, the development of the introduction of the Great Saint Technology is also no more than a district “to explore the strategic upgrade from open e-commerce to digital science and technology enterprises” a sentence, in the 2020 half-yearly report on the Great Saint Technology described as “accelerate the digital transformation system mechanism implementation plan”, about the revenue and profit of Great Saint Technology are not disclosed.
A Kaiyuan Asset Appraisal Limited (hereinafter Kaiyuan Appraisal) appraisal report of Great Saint Technology issued on August 3, 2020 obtained by the 21st Century Business Herald shows that the company’s revenue for 2018, 2019 and January-May 2020 was 55,604,900 yuan, 33,329,900 yuan and 48,287,400 yuan respectively, and its net profit was – 80,414,400, -37,610,000 and -5,328,300.
As of May 31, 2020 as the valuation base date, the unaudited book value of the total assets declared and assessed by Dasheng Technology was 543,968,700 Yuan, the book value of the total liabilities was 40,288,600 Yuan and the book value of the owners’ (shareholders’) equity was 503,801,000 Yuan.
Taking May 31, 2020 as the base date, the appraisal value given by Kaiyuan Appraisal to the 14.2991% stake in Dasheng Technology is 72,812,300 yuan. The information on the Alibid auction website shows that the LeTV Holdings was auctioned 14.2991% of the equity shares of Da Sheng Technology, was executed by the Beijing Third Intermediate People’s Court (hereinafter referred to as the Beijing Third Intermediate People’s Court) in a judicial auction, the applicant is Jiangsu Chenyang Electronics Co.
The lawsuit between Jiangsu Chenyang and LeEco Holdings dates back to 2017, and a civil ruling from the Danyang People’s Court (hereinafter referred to as Danyang Court) in Jiangsu Province obtained by the 21st Century Business Herald shows that the sale and purchase of Jiangsu Chenyang and LeEco New Electronic Technology (Tianjin) Co Ltd (hereinafter referred to as LeEco New Electronics), LeEco Mobile Intelligent Information Technology (Beijing) Co Ltd (hereinafter referred to as LeEco Mobile), and LeEco Holdings’ In the contract dispute case, on July 5, 2017, the Danyang Court ruled that “the Respondent, Leshi Zhixin Electronics, Leshi Mobile, and Leshi Holdings bank deposits of RMB 40.5 million or the seizure of its other property of equivalent value.”
Thereafter, although mediated by Beijing No. 3 Intermediate Court, Jiangsu Chenyang applied for enforcement on August 17, 2018 and was filed for enforcement. As the executor had no property available for execution, Beijing No. 3 Intermediate Court made a ruling to terminate this enforcement proceeding.
In the first half of 2020, Jiangsu Chenyang applied to Beijing No. 3 Intermediate Court for resumption of execution, and the court on June 5, 2020, after the filing of the case for resumption of execution, issued an enforcement notice to the executor LeShi Mobile and LeShi Holdings in accordance with the law, ordering it to immediately perform the obligations determined by the legal instrument after receiving the enforcement notice, and ruled to “freeze and transfer the bank deposits of LeShi Mobile in RMB 3,949,659,000 yuan and 8,657,306,000 U.S. dollars; freeze and transfer of LeTV Holdings’ bank deposits of RMB 64,148,000 yuan and $8,409,703,000 U.S. dollars”, etc.
Information from the Ali Auction website shows that the auction of 14.2991% of the shares of Dasheng Technology held by LeTV Holdings is the first auction, with an appraisal price of 72,812,300 yuan, a starting price of 50,968,610 yuan, a margin of 5 million yuan, and a price increase of 250,000 yuan.
However, according to information from Ali Auction, the 14.2991% stake in Da Sheng Technology is still in the court freeze stage.
In the October 26-27 auction time period, Great Saint Technology 14.2991% equity only GAC Group a bidder offer, and finally to 50,968,610,000 yuan to bid successfully.
At present, GAC Group through the Zhongcheng Automobile Insurance holds a total of 60% of the equity of Da Sheng Technology, after the success of this auction, its shareholding proportion of Da Sheng Technology will reach 74.2991%.
According to the vision at that time, GAC Group intends to “build a one-stop platform for repairing, using, buying, renting and exchanging cars through its subsidiary, Dasheng Technology, and build an open and shared automobile Internet ecosystem”, which was later changed to “explore the strategic upgrade from an open electric company to a digital technology enterprise”, and then to “speed up the implementation plan of the digital transformation system and mechanism”.
For GAC Group, the purpose of increasing its stake in Daishing Technology may soon be revealed.
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