Business
13:22, 31-Jan-2018
China's Leshi Internet flags $1.8 bln loss for 2017
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Leshi Internet Information and Technology, the Shenzhen-listed arm of technology conglomerate LeEco, said it expects about 11.6 billion yuan (1.84 billion US dollars) in net loss for 2017.
Leshi attributed its operation loss to the financial strain of related parties, liquidity issues, shrinking advertisement revenue and rising financing costs on Tuesday.
The company saw its shares plummet by the daily limit of 10 percent for five consecutive days since it restarted trading last week.
The plunge came after a suspension from April last year when the company said in a filing on the Shenzhen Stock Exchange that it was contemplating capital restructuring.
The company warned investors of risks in light of its current operation.
Once dubbed “China’s Netflix”, Leshi's 2016 profit was 554.7 million yuan. But it has struggled along with its parent company LeEco after an over-aggressive expansion plan left the group cash-strapped.
Source(s): Xinhua News Agency