Music as the layout of the three smart terminals LeTV's future development

1) The production capacity of Super TV has slowed down. There are 20,000 units of spot buying before the spot market, and there are sometimes 10,000 units in the middle of the spot market. Now it is restored to 15,000. Where is the bottleneck of production capacity?

Jia Zong: The issue of production capacity has been running through the 14 years of the year since the second half of the year. The problem on the one hand is that we have insufficient experience with the industry, and on the other hand, it is a matter of funding.

a) Inexperience is the balance between future sales forecasting and stocking. For example, at the end of 13th year, sales are expected to reach 1 million units in 14 years, and finally 150-1.6 million units, an increase of 50% but it will give us a lot. The pressure is the greatest pressure. Several 8.5-generation lines are in the process of being gradually put into production. The production of production capacity takes time. We have insufficient pre-judgment on screens and the screen does not guarantee sales demand.

b) The other part is due to funding requirements. Last year’s rumors caused some financial institutions’ support for LeTV to decrease, and follow-ups were gradually resolved. Nowadays, the credit system has been established, and Jia Yuefang’s stock has been sold without interest to the company as a working capital, and the funds have been phased. Now we have a basic guarantee for the sales target of 300-400 million units. Of course, LeTV's business model still has a demand for funds. This year's strategy will also have some changes. In addition to the unchanged sales model, there will be greater improvement in capital funds.

2) How much is the renewal rate for Super TV 13 years? Has the profit model been expanded? Taobao some sales less than 100 yuan, what is the situation?

Jia Zong: Although there is a phenomenon of Taobao's low-cost card, the renewal rate is still very good. Previously, the point card and the television were separated, so there were industry users selling the card at a low price, but we are now ready to do machine card binding to solve the problem of Taobao's low-priced point card sales. I believe that this issue is fundamentally resolved, and the renewal rate will also have a certain degree of improvement.

3) When will LeSports Finance be completed? Is there any plan for the copyright purchase of the event? Sports lottery is mainly based on self-operated or combined transport. How to promote?

Jia Zong: The progress of sports financing is still very smooth. At present, we are still in the process of choosing. Several companies that are currently signing the term, if they are announced in the end, will be a very shocking combination. Strategic investors who have more strategic resources and very strong capabilities will have a greater interest in LeTV. The competition for sports copyright is a very good issue. Letv sports don't worry about it. It has very rich copyrights in the subdivision areas. This is the characteristic of the internet industry. When you have a certain industry threshold, follow-up is very difficult to follow. The current accumulative advantages of LeTV Sports are as follows: a) LeTV Sports has the largest amount of copyright; b) through the operation of the past few years to create the industry's strongest operating team; c) LeTV Sports accumulated the world's best live broadcast, round The technical resources of broadcasting and on-demand broadcasting are more than one year apart from other companies and LeTV; d) LeTV Sports' users are growing at a high rate. Under the guidance of the strategy of industrialization, internetization, and globalization, it may even exceed the space added by the entire entertainment industry.

Sports Lottery currently joins third parties and will consider applying for licenses and self-operation in the future.

4) Is there a layout for Internet finance? Is there any plan to apply for a payment license?

Jia Zong: Regarding Letv Ecology, the internet finance business itself is the inevitable development of LeTV. This is beyond doubt.

Zhang Te: Last year announced the plan to increase, some thoughts on Internet finance, one is to combine the resources of CITIC Securities, to explore the possibility of follow-up business; the second when LeTV users reach a certain scale, the user and we form a very strong The connection relationship does not rule out the need to independently explore and design Internet finance products and services. So far we have not introduced any products externally, nor have we applied for licenses from any institution.

5) Le Par partner's profitability, they do a good job with the purchase of products, also introduced a lot of LeTV. If the user finally buys music to the mall, is there a relative coordination mechanism? Is there any possibility of new incentives?

LePar Partners is our very important job now. How to integrate LeSpot Mall with LePar to achieve a close integration between online and offline, forming a powerful chemical reaction. This phenomenon can be solved in two ways: a) In a LePar service area, if it is a sales customer brought by LeSports Mall, LePar carries out follow-up services; b) LeSpot Mall will do organic transformation in the next three months, all LePar is one of the vectors of LeSports. There are certain differences between the pricing models of LePar and the mall, and all lines are the mode of adding service fees, which will bring a reasonable return to Lepar. If the user is very sensitive to the price, he will come to LeSports and have a certain queue period. If he is sensitive to time, he may choose LePar to sell.

6) Every time you look at the views of General Jia’s annual meeting, you can see that the organization is changing. When the organization developed to a certain extent, the partnership system was introduced last year. Where is LeTV's border and does Jia's workload require subtraction?

Jia Zong: Regarding the boundary of music ecology, there was a simple discussion before:

The first is what LeTV does in the end, and it must be an industry highly related to LeTV’s core appeals. It is the emergence of a very strong chemical reaction with the main business of LeTV, including the Internet platform, Internet content, Internet applications, and strong associated intelligent hardware. Followed by what the user needs, some future-oriented needs, others have not done or have not done a good job, LeTV wants to be a pioneer. For LeTV, every industry we enter will first have a very strong self-confidence and will not blindly enter; and we are also prepared for failure. Even if we cannot succeed, we need to see if LeTV is promoting this event. The development and progress of the industry provide users with more value. If this is done, LeTV’s strategy has already been successful. Of course, we hope our ideas can be successfully implemented. If it is not enough to decide on it, it will be risky. If you do your best, the risk will be smaller.

The most important thing in a correct strategy is organization. The partner system can help our organization very much. The organizational reform we proposed in 2013, the eco-organization is the coexistence of the management organization and the project organization. Through one year of practice, especially during the past six months in overseas, the entire LeTV organization has been very smooth. Especially with regard to organizational changes, LeTV’s management has risen a very large scale. As far as the current development is concerned, due to the lack of equity financing capacity, there is an elbow on the development of LeTV and the ability to resist risks has an impact. 2015 equity financing is one of the most important things for LeTV. Because of its strategic and organizational leadership, if it is to effectively solve the capital problem, it will be a very probable event that LeTV will take off in the next three years. After the organizational structure, organization members, and organizational resources are resolved, the most important thing is organizational incentives. In the past, it was more of a dream and a sense of mission. However, not all of the dreams and missions were meant to solve the long-term, medium-term, and short-term incentive problems, especially the very complicated ecological business. Organizational incentives are even more important. Therefore, it is very important for the restructuring of our partners this year. I will personally take 50% of the non-listed companies to the management and the entire staff. Unlisted companies have already been very large in volume, and they believe that the improvement of the team's enthusiasm will greatly help. In the future, we hope that everyone will be conscious and spontaneous and form a cross-industry collaboration with close collaboration.

7) The development of LeTV has penetrated from the traditional Internet to other industries and fields. How do we face competition from other competitors in other battlefields?

Jia Zong: LeTV is first and foremost an internet company, and it is also a traditional industry that changes the way of thinking and mode of the Internet. LeTV is not just an internet company but an internet industry company. The original competition in the industrial era was a peer-to-peer competition, but it was a chain-to-chain, ecological-to-ecological competition. One point is hard to compete with the chain and ecology. It has been very difficult to see companies that have single-point breakthroughs now. LeTV seems to have a long battle line and hopes to do it with great concentration in any one single point. I believe it will create explosiveness and value. LeTV is not just at the low end. Through multi-level competition, the liquidity model and the profit model will have very flexible adjustments. Before there was only one point for single point, it was difficult to compete with Letv Ecology.

8) What is the current level of overseas progress?

Jia Zong: The next 10 to 20 years will be an important historical opportunity for Chinese Internet companies. We believe that our judgment is correct and we have seen a little bit of clues. Now the Internet consumer electronics companies have already achieved initial success in the overseas acquisition phase. The future global market, especially the electronics market, will be the market for Chinese companies. In order to succeed in globalization, the industrial advantages of Chinese companies must be brought into play. That is, industrial integration, close integration of technology and IT will generate new user values. LeTV’s model is unique, and it is hoped that the LeTV’s leading model will be quickly copied overseas and it will also find a way out. It can be seen that many companies are also mimicking Le Vision, setting up a cultural company or setting up a smart terminal company. This is a very good trend and we hope that the successful model will gain more recognition.

In Europe, it will be found industrially advanced and shocking. But I am also very lost. Europe is too far away from the Internet. Industry 4.0 is still an idea in the industrial sector, but the future of industrial upgrading is driven by the Internet rather than simple intelligence or simple industrial upgrading. To a five-star European hotel, the bandwidth is fee-based and very slow, which is also a huge opportunity for Chinese companies. Japan and South Korea are better, and they have some understanding of the use of the Internet. However, it is difficult for hardware companies to make the transition to the Internet, but the best is the United States. The weaknesses of European and Japanese and South Korean companies are precisely the advantages of Chinese companies. The future opportunity is really China's Internet industry.

Progress is two major businesses: a) The overseas replication of the domestic LeTV network ecology. Super TV 50-inch and 40-inch single products are also the absolute number one in Hong Kong, and supply exceeds demand. They also solve supply and patent issues with foundries. In the next 15 years, LeTV will gradually see several other countries, including Chinese and non-Chinese speaking regions. The Chinese-language area is the entire ecological copy. The non-Chinese-speaking area first enters through the terminal, and then enters through the Levision cloud;

b) The expansion of the SEE program has established the world's top Internet e-car team. The formation of the team is a point we are very proud of, whether we can have the best technical team, decide whether you can win in this market, of course, with a good business model. Let's do this within six months to one year. This is where our confidence lies. Seen innumerable top experts in the automotive field, they are impressed with the ecology and business model of LeTV. By different from the existing mechanism, SEE plans to create a very big impetus for the overtaking of the corner of the automobile industry. The next road is very long and the capital is heavier. We already have a good idea.

9) Did the Internet TV license make a breakthrough? If there is no timetable for equity financing, is there any other way to solve the funding problem?

Liu Ye: The existing Internet TV licenses are mainly issued to seven, and the broadcast licenses have not been issued again from the perspective of the General Administration of Administration. The content service license has now been issued for more than a dozen, and the whole is still within the broadcasting and television system. This includes LeTV's private companies, which will not be issued separately in the near future. However, the owner and operator of the license are separate. CCTV is the owner of the license. However, the shareholders of the company are Tencent, Yi Shiteng and other private companies. So we will actively explore this direction.

Zhang Te: In respect of corporate financing, the plan for increasing the number has been reported to the China Securities Regulatory Commission. We are thinking about some innovative solutions. For example, some subsidiaries are split into separate financings. Historically, we have introduced new individual financing to the Innovation Workshop and Foxconn. This is not only financial support but also strategic significance. Next, companies such as cloud computing will be spun off separately for financing. It also saw that shareholders also made some support and sold some old shares to the listed company at no cost. Follow-up does not rule out contact with strategic investors and explore new financing tools. Affected by the storms of the previous period, the bank tightened financial support. Then the company's business will be eased.

10) As mentioned at the beginning of the year, how much time does LeSpeech have to make in the direction of 100 billion U.S. dollars, and how much does the listed company account for?

Zhang Te: How much time is difficult to measure clearly, LeTV has always led the growth of the entire industry, LeTV's market is a trillion market value. The proportion of listed companies also has objective factors and subjective factors, and the proportion is hard to say.

11) Did Jia Quan just mentioned the issue of funds, can it subdivide the shortage of funds in various fields?

Zhang Te: The core of listed companies needs resources in two major categories. One is the investment in Internet applications. The core is copyright; the second is the shortage of funds on the terminal. The impact of the storm over the previous period and the reduction of bank credit have had a chain reaction and have gradually returned to normal. In the future, the funding gaps of listed companies can be initiated in the form of continuous increase in fixed income, the disposal of listed company's shares and lending to listed companies and independent independent financing of subsidiaries. The in-house funding gap is not measured in detail, but attracting investment is not a problem. The mobile phone business is already controlled by the controlling company and the listed company has equity, and investors are already in contact.

12) The shareholder of the existing licensee is similar to Tencent and Youtu. It is based on cooperation between the CP and the licensee, but the positioning of LeTV is not the same.

Liu Ye: The bottom line is not a game between the two sides but a national policy. It will also seek to operate licenses in a joint venture with the licensees and use better products and services for users. This is a resonance relationship between the two parties. The goal of forming a joint venture company is the same.

13) Millet mentioned that millet is open and LeTV is closed. What do you think?

Jia Zong: Lets think of ecology as an open, closed loop. LeTV Cloud Platform is China's largest cloud video platform, and the number of companies serving it is many times more than other companies. Content and application levels are also completely open. We will also launch a very cool application that is also fully open.

14) What standard does the new project use to determine whether it is listed or in vitro? What is the consideration of injection into the market?

Zhang Te: The overall management is based on LeTV's internet gene and business model. There is a capital relationship with listed companies. This is not ruled out. What criteria should be used to judge: 1) The relevance of this business to a listed company is strongly related to the early stage and is an essential link. There will be some problems when demolishing it; 2) The thirst for funds in the early stages, whether it is for the management of listed companies Adverse effects, such as the removal of the mobile phone business, taking into account the previous period is a money-burning business, on the inside of the operation will bring about a substantial decline in the performance of listed companies, is the capital market and regulatory agencies do not want to see; 3) Da Leshi is a global layout Some businesses are suitable for overseas capital markets, and some are suitable for domestic docking. It will also determine which ones are suitable for the global market layout, similar to the super electric vehicles, to the United States, obtaining cashier technology and integrating more resources.

When it comes to listed companies, it depends on whether there are obstacles in the policy and there are laws; it also needs to see whether there are problems such as the settlement of connected transactions, which is a more complicated judgment system.

15) Is there any idea for more intelligent terminals? What is the similarity and difference between the ecological layout of millet?

Jia Zong: The terminal's risk point is cross-border, but it happens to be LeTV's advantage. It is just cross-border that brings different experiences. With stress, power, and capability, smart terminals are the strong points that have driven LeTV's ecology into entry barriers.

The innovation of hardware and software is not as big as the space. The real innovation is the integration of the industrial chain, including the integration of hardware, software, platforms, and Internet services. But the real innovation is the need to continuously improve the user experience. So the first thing to do is to break organizational boundaries and break innovation boundaries. However, LeTV also has MFL (Made for Lemi), which uses a third-party manufacturing capability plus the strong point of LeTV's ecology to generate new product forms. Letv ecology is mainly self-employed with a large number of third-party integration, and Xiaomi is a third-party-based company and self-employed.

LeTV plans to deploy three major industries: one is based on TV, the second is the mobile phone as the core of wearable, and the third is the car. Headphones, Le Xiaobao are mainly Leie.

16) Did Jia Zong have any sentiment in his bed? How will LeTV’s follow-up layout?

Jia Zong: The company should be truly publicized and partnered. With enough enthusiasm and changing the way of thinking, there are countless people like me who are driving the company's development. Pulling by one person can be a stage, but if you want to be the first one billion US dollar company, you need everyone's strength.

LeTV was ranked second and third last year, and Internet companies also entered. However, they are still very difficult to manage, and the formation of a true cross-team collaboration is difficult to achieve, it is difficult to rely solely on subsidiaries. The first is organizational structure, and the second is talent. LeTV has already had a more advanced strategy and will release a new strategy within three to four months.

17) What is the layout of the super car? Is it primarily a shareholding or is it self-considered?

Jia Zhan: There have been announcements in the early stages of development. It is not appropriate to say too much. It is more of a competitive strategy. From the technical and business model is very clear, really have a chemical reaction or to rely on endogenous. LeTV should establish a stronger and more collaborative team.

18) What is the relationship between what is being done and LeTV's traditional things is getting smaller and smaller? How can we do a good job of them smoothly?

Jia Zong: At a deeper level, the degree of association is getting stronger. Because television, mobile phones, and cars, the relevance of content is declining. Content is one of our early stages. The content relevance of mobile phones and televisions is very strong. Video applications are the first applications of mobile phones. It is already very common for young people to watch videos on mobile phones. LeTV is a multi-screen and multi-cloud company. Using the big data system accumulated by the cloud, it will greatly promote LeTV's future product launch. TV has created a strong R&D team for IT products, and the relevance of mobile and TV products is very strong.

The business model LeTV was a video site in the early days and gradually evolved into an ecosystem. Cars can replicate our business model completely, and it is possible to become the biggest single point in the future. We only have the Internet and content when we do television, and we already have everything when we do mobile phones. If the phone is successful, it will lay a very strong foundation for the success of the car. Letv Ecology is an eco-sphere created for fans and the relevance will become stronger and stronger. The characteristic of our own strategy is to use the future to define the future and then define the future now.

LeTV has a better grasp of smartphones. Two years ago we were able to launch it with TV, but there will be more pressure. After the launch of the car in the mobile phone, we will have a full consideration now.

19) How to solve the problem of LeTV falling in attractiveness? Users are distracted from other channels. How does LeTV solve this problem?

Jia Zong: The price of traditional TV manufacturers has dropped, and the price/performance ratio of LeTV seems to have declined. Because with the increase in the number of users, and the user experience is good enough, we will initially have gross profit. Price and price/performance are not the only factors. Finally, comprehensive experience and comprehensive competition. LeTV will not use hardware margin as a source of revenue. We have a diversified and multi-level profit model. Other companies cannot compete with LeTV. It is a completely different model from other manufacturers. LeTV CP2C channelization, the whole process of direct user mode, is the traditional competitors can not follow.

The growing popularity of video content is a big issue for video production. It is how to make our content more focused. In fact, the more decentralized, the more favorable to the Internet companies is, the traditional market share of many movie companies is declining, traditional large-scale films are more and more difficult to do, and many anti-movie traditional works have achieved great success. This is also a development trend. The competition in the final movie is still content to win. No matter where the father is going or running, it is the victory of marketing. However, the mainstream of the future must be high-quality content, and there will be room for minute marketing that focuses on hot spots. This is also one of the advantages of Internet companies.

Combined several factors, the attractiveness of Super TV will definitely not decline.