Revamp lifts Letv's share by 10% limit

Letv.com, the only domestically listed online video firm, surged by the 10 percent daily cap yesterday after trading was suspended for more than a month for "asset re-combination."

Letv, listed on the small and medium enterprise board in Shenzhen, closed at 36.86 yuan (US$5.97) yesterday, the first trading day since it halted trading on October 27 for asset re-combination — injecting film production and distribution business into the listed arm.

The injection is expected to boost the listed firm's revenue and expand its portfolio from online video, set-top box and Internet TV, Letv said.

"It's a new film production firm in the Internet era," Jia Yueting, Letv's chairman, said recently in Beijing.

Letv was involved in producing and distributing popular films like Tiny Times 3 and Coming Home, which earned box office receipts of 2 billion yuan.

The Letv website, mobile app and TVs command over 50 million viewers daily and are the best channels for new films, industry insiders said.

Meanwhile, Letv aims to raise US$50 million for Letv Sports.

Letv TV sales will hit 1.5 million units, said Jia, who sees sports and TV as revenue engines next year.