LeEco chairman says cash problem 'far worse than expected'

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LeEco held its annual shareholder meeting on Wednesday, with its chairman Jia Yueting admitting the company's cash problems are far worse than expected.

Jia said the company's cash problem in recent months is worse than last year. He said he thought the nine-billion-yuan (1.32 billion US dollars) sale of some parts of the company could solve all the problems, but still there are certain mistakes that need more cash to solve.

All-electric battery concept car produced by LeEco in Beijing, April 20, 2016. /CFP Photo

LeEco grew from a Netflix-like video website to a tech giant spanning from movie productions, to smart TVs, wine cellars, television investments and electric concept cars.

"We had thought some nine billion yuan for the non-listed units would have been able to solve all the problems, the result obviously did not meet our expectations," Jia said.

Earlier this year, Chinese property developer Sunac agreed to invest 15 billion yuan (2.21 billion US dollars), including 9 billion yuan into LeEco's non-listed entities.

LeEco shows their concept car in January 2017 in Las Vegas. /CFP Photo

Speaking of solutions to solve LeEco's problems, Jia said his company will continue to adjust strategies, and become more focused.

He added that he will put more money into operation instead of paying back to financial institutions. "LeEco cars will finish round A soon, and will produce cars accordingly," Jia promised.