Jia Yueting, co-founder and head of Le Holdings, also known as LeEco and formerly as LeTV, at its headquarters in Beijing. Photo: Reuters
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https://scmp.com/business/companies/article/2134974/leshi-posts-us18-billion-loss-2017 Companies
Leshi posts US$1.8 billion loss for 2017
Shenzhen-listed video streaming arm of debt-ridden Chinese conglomerate LeEco unveils first full-year in the red since listing in 2010
A worker installs the logo of LeEco, formerly known as Leshi or LeTV, in preparation for the 2016 International Consumer Electronics Show Asia. Photo: Imaginechina
Leshi internet Information and Technology has reported a loss of 11.6 billion yuan (US$1.8 billion) for 2017 – its first full year in the red since listing in 2010. It recorded a 554.8 million yuan profit in 2016.
The Shenzhen-listed video streaming arm of debt-ridden Chinese conglomerate LeEco said liquidity risks at affiliates had hit its reputation and creditability hard, leading to a slump in advertisement and subscription fees last year, according to its preliminary earnings report to the stock exchange late on Tuesday. The loss was in line with an earlier estimate made in January.
Various other entities in the group controlled by LeEco’s founder Jia Yueting owe Leshi some 7.53 billion yuan due to the parent company’s too aggressive expansion plan.
Leshi has written off 4.4 billion yuan as affiliated companies are unable to pay back money owed to it, it added in the filing.
The results have not been externally audited yet, and a full earnings report will be posted later this year.
Leshi shares were suspended from trading from April last year until January 24. They ended at 5.44 yuan in Shenzhen on Tuesday, meaning they have lost 64.5 per cent of their value since that resumption.