Tag Archives: LeEco
HONG KONG (Reuters) – Chinese video-streaming firm Leshi Internet Information & Technology said it expects a net loss of 11.6 billion yuan ($ 1.83 billion) for 2017, citing a cash crunch at embattled technology conglomerate LeEco that hurt its revenues.
Leshi had reported a profit of 554.8 million yuan in 2016.
It was once the main listed unit of LeEco which was founded by Jia Yueting. Last year, property developer Sunac China became Leshi’s second-largest shareholder and Jia subsequently resigned as chairman and CEO from the company but remains its largest shareholder.
Leshi is trying to recover debt owed by Jia. It said last week it is seeking equity stakes in the car businesses of Jia for debt owed by him and his companies amounting to as much as 7.5 billion yuan ($ 1.17 billion).
Leshi flagged the expected loss for 2017 in a statement to the Shenzhen stock exchange on Tuesday evening.
The announcement sent Leshi’s shares plunging by the daily limit of 10 percent on Wednesday, the sixth consecutive day they have tumbled the maximum allowed since resuming trading a week ago following a 9-month suspension.
(This version of the story corrects fifth paragraph to show announcement was made to Shenzhen stock exchange, not Hong Kong stock exchange)
Reporting by Sijia Jiang; Editing by Anne Marie Roantree and Muralikumar Anantharaman
HONG KONG (Reuters) – A Hong Kong arm of embattled Chinese tech conglomerate LeEco has filed a petition to the territory’s high court to wind up the company, media in the Asian financial hub said on Thursday.
LE Corporation Limited, a unit of LeEco, has applied to liquidate the business according to court documents, government-owned Radio Television Hong Kong and other local media said.
LE Corporation could not immediately be reached for comment. The customer service hotline listed on its website did not appear to be working.
LeTV Sports Culture Develop (Hong Kong) CO. Limited, another LeEco unit in Hong Kong that broadcasts sports events, said on its Facebook page that its operations were unaffected by LE Corporation’s application for liquidation as it is a separate entity.
It said it would continue its NBA basketball and Premier League soccer broadcasting business in the city under the brand name LeSports HK.
LeEco, an entertainment, electronics and electric vehicles group founded by Jia Yueting, has struggled to pay its debts after rapid expansion led to a cash crunch, share price plunge and multiple defaults.
In Hong Kong, LeEco sold smart phones, internet TVs and online content. At its peak in early 2016, the group employed hundreds across several subsidiaries in the city, which was its Asia Pacific headquarters.
Cheng Shisheng, a Beijing-based spokesman for LeEco, told Reuters by phone that he now only works for LeEco’s car business and declined to comment on all matters related to LeEco Hong Kong’s situation.
Reporting by Sijia Jiang; Editing by Clarence Fernandez and Keith Weir