Tag Archives: Leshi
HONG KONG (Reuters) – Leshi Internet Information & Technology Corp Beijing has been formally asked whether its assets, which have fallen 98 percent over the past year, are at risk of turning negative and triggering a share trading halt and possible eventual delisting.
The Shenzhen Stock Exchange’s website on Wednesday showed the bourse had sent Leshi 33 questions, including about its assets. Under its rules, a year of negative net assets results in “suspension from being a listed company”, with two years ending in delisting.
Leshi, a video-streaming company that also makes internet-connected television sets, has seen revenue and profit dwindle since mid-2017 amid a funding crisis involving parent conglomerate LeEco and its founder Jia Yueting.
Net assets attributable to shareholders stood at 304 million yuan ($ 47.70 million) at the end of March, from 13.6 billion yuan a year earlier. It reported a net loss of 307 million yuan for January-March 2018 and a loss of 13.9 billion yuan for all of 2017.
The Shenzhen bourse also questioned Leshi about its operations, asset impairment and auditing. It asked the firm to detail its debts, explain slumping performance at subsidiaries, and disclose ownership relations with other companies as well as whether units conduct transactions with other group companies.
It also asked for an update on Jia and his related parties’ repayment of debt to Leshi, and whether there has been a change in the company’s decision-making personnel.
Leshi, which since July has been managed by second-largest shareholder Sunac China Holdings Ltd, in January said Jia and LeEco owed it 7.5 billion yuan. LeEco disputed the figure.
Jia, who remains Leshi’s largest shareholder, has been residing in the United States to work on his electric vehicle start-up company, though Chinese regulators have requested his return.
The Shenzhen exchange has also asked Leshi to explain how its salary expense rose in 2017 though headcount dropped.
It has requested a reply from Leshi by May 18.
A Leshi spokeswoman said the company had no immediate comment when contacted by Reuters.
Leshi’s shares were down 2.6 percent in morning trade in a flat broader market.
Reporting by Sijia Jiang and Hong Kong newsroom; Editing by Christopher Cushing
HONG KONG (Reuters) – China’s Leshi Internet said about 5.62 billion yuan ($ 890 million) of its debts would be due by the end of this year, or almost two-thirds of the company’s total loans and liabilities, sending its shares down for a ninth day.
This is the first time the video-streaming firm – which is battling the fallout from a severe cash crunch at its founder Jia Yueting’s embattled technology conglomerate LeEco – has provided an estimate for its debt in 2018.
Earlier, the company had said that a part of its total loans and financial liabilities of 9.29 billion yuan ($ 1.5 billion)would be due this year, without giving any further details.
Leshi shares plunged by the daily limit of 10 percent on Monday. Nine days of declines, since the stock resumed trading in January after a nine-month suspension, have knocked 37.5 billion yuan off the company’s market capitalization, that is currently at 23.7 billion yuan.
At its peak in 2015, Leshi was valued at 153 billion yuan.
Just last week, Leshi flagged that it expected a loss of 11.6 billion yuan for 2017, more than five times its combined profits since listing on the Shenzhen stock exchange in 2010, due to the ongoing crisis at LeEco.
LeEco was once China’s Netflix-to-Tesla contender but ran into a cash crunch since late 2016 after expanding too fast. Leshi used to be the main listed unit of the conglomerate.
But under the control of property developer Sunac China – its second-largest shareholder, Leshi is now trying to distance itself from the LeEco brand.
Leshi says its largest shareholder Jia and related LeEco units owe it 7.5 billion yuan ($ 1.19 billion). LeEco disputes the figure.
Shares of Sunac plunged as much as 6 percent, lagging a nearly 2 percent fall for the benchmark index.
Reporting by Sijia Jiang; Editing by Himani Sarkar
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