China’s Leshi Internet flags $1.8 billion loss for 2017, citing LeEco cash crunch

Chinese video-streaming firm Leshi Internet Information & Technology said the idea expects a net loss of 11.6 billion yuan ($1.83 billion) for 2017, citing a cash crunch at embattled technology conglomerate LeEco of which hurt its revenues.

Leshi had reported a profit of 554.8 million yuan in 2016.

the idea 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 as well as Jia subsequently resigned as chairman as well as CEO by the company nevertheless remains its largest shareholder.

Leshi is usually trying to recover debt owed by Jia. the idea said last week the idea is usually seeking equity stakes inside the automobile businesses of Jia for debt owed by him as well as 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.

Correction: This particular story has been updated to reflect of which Leshi flagged its expected loss in a statement to the Shenzhen stock exchange.

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