72V20Ah Lithium Ion Battery,Electric Scooter Lifepo4 Battery Pack,Lithium Battery For Electric Motorcycle,Lithium Battery For Electric Bike Jiangsu Zhitai New Energy Technology Co.,Ltd , https://www.zttall.com
LeTV Denies TV Production Discontinuation, Foxconn Finds New Foundry After Withdrawing
In the midst of LeTV's financial struggles, Sun Lebin’s newly restructured LeTV is working hard to develop a strategy aimed at achieving profitability. Ensuring the stability of its core business, the TV screen market, is a top priority. Recently, LeTV released its semi-annual report, revealing a loss of 637 million yuan in the first half, representing a year-on-year decline of 323.91%. LeTV attributed this to the financial issues of related parties within the LeTV system, which also led to a significant drop in the company’s primary revenue.
Despite these challenges, insiders at LeTV shared with the "Securities Daily" that following Sun Hongbin's intervention, the listed system (New LeTV) has undergone a new round of integration. Post-integration, New LeTV is focusing exclusively on the TV big screen business. With new partners expected to join soon, the next goal for New LeTV is to ensure profitability across LeTV and other affiliated entities.
The "Securities Daily" learned that to secure the stability of its core business, LeTV has resumed production after parting ways with Hon Hai Foxconn. Currently, LeTV is in talks with potential new TV manufacturers. Sources indicate that after Foxconn’s departure, LeTV now has four foundries: TPV, Yichang, TCL, and Zhongqiang. Following these discussions, LeTV may reintroduce 2 to 3 additional foundries, potentially increasing its total to seven.
The rumors surrounding LeTV's complete shutdown of production have been debunked. A representative from LeTV told the Securities Daily: “It’s untrue that LeTV has completely halted production. While Foxconn has ceased providing OEM services, LeTV has not stopped production entirely. Production levels have decreased over time.â€
LeTV confirmed that several models, including the 4X55M Eco Edition, have resumed production. These are manufactured by Levision New (Tianjin) Co., Ltd., located in Kunshan, Suzhou, with the latest production date recorded on August 21, 2017. This marks the beginning of a new production cycle for LeTV.
A source from LeTV explained further: “This particular batch of models resumed production in August this year and is being produced by Yichang. LeTV places orders with its foundries, who then complete the production and store the finished products. LeTV distributes TVs globally based on various models. Once inventory for specific models reaches a safe level, production lines for those models are reopened. This process is cyclical and should dispel any rumors suggesting a complete halt in production.â€
Regarding the termination of cooperation with Foxconn, it was clarified that the cessation of contractual agreements does not equate to an immediate suspension of all production activities. The representative emphasized: “LeTV has never ceased working with foundries. After Foxconn’s withdrawal, LeTV now operates with four foundries and is actively seeking new partnerships.â€
Details of these negotiations have surfaced, shedding light on potential new foundries. LeTV is searching for a replacement partner for television manufacturing, with both sides now in the negotiation phase. Sun Hongbin’s involvement in these discussions has instilled confidence among potential new partners.
Following the LeTV financial crisis, suppliers like Foxconn and Compal Computer were ejected from their roles. LeTV Zhixin, a subsidiary of LeTV, primarily handles the company’s smart TV business. Foxconn’s abrupt withdrawal marked the end of a four-year partnership.
LeTV and Foxconn initially joined forces in 2013, with Foxconn becoming the exclusive manufacturer of LeTV’s smart TVs and Internet set-top boxes. The agreement stipulated that Terry Gou could not produce smart TVs for other Chinese Internet companies. Later that year, LeTV announced that Shenzhen Guanding Construction Engineering Co., Ltd. would invest in LeTV, with Shenzhen Guanding eventually accounting for 20% of new shares. Shenzhen Guanding was considered an affiliate of Foxconn.
Initially, Terry Gou and Jia Yueting formed a strong bond, but their relationship began to deteriorate five years later. By early 2016, Shenzhen Guanding was removed from LeTV’s shareholder list, signaling the end of their partnership. Foxconn subsequently cleared its remaining inventory and ceased providing OEM opportunities.
Earlier this year, LeTV set a new sales target for 2017: aiming to sell 7 million units, with an aspirational goal of reaching 8 million. It remains uncertain whether this target will be met.
After Sun Hongbin took over, Liang Jun replaced Jia Yueting as CEO to oversee the integration of LeTV’s listed system. Liang Jun stated that LeTV’s listed system has been restructured, with organizational adjustments underway. The next step involves integrating the television operations team with LeTV Network’s team. Moving forward, the entire listed company’s focus will be on the TV screen market. Liang Jun also emphasized the need to explore new profit channels for LeTV. Having a stable partner is crucial for New LeTV’s profitability, especially given its concentration on the TV sector.
Currently, LeTV has identified potential new foundries and negotiations are ongoing. Success hinges on mutual agreement regarding interests. Each foundry produces TVs of varying sizes, so LeTV plans to work with multiple partners. Despite recent setbacks, LeTV’s demand for foundry services remains high.