Listen to this article
LeEco online video affiliate Leshi Internet Information said it expects profit for the three months to March at between Rmb103m and Rmb131m ($14.9m to $19.1m) following recovery from a liquidity squeeze at the beginning of the year.
Shenzhen-listed Leshi’s net profit estimates would represent a 10 per cent fall or 15 per cent rise on the Rmb114m profit in the same period last year. The company said liquidity issues that arose at the beginning of the year had been resolved and it had returned to steady growth.
Jia Yueting, the Chinese billionaire founder and chairman of media and technology group LeEco wrote an open letter to staff in November saying the company was short of cash following rapid expansion, sending Leshi’s shares tumbling. LeEco’s businesses range from televisions to movie production and driverless cars.
LeEco secured a $2.4bn strategic investment in January from a consortium including Sunac China Holdings into its online video, smart TV and movie production affiliates.
Leshi’s shares are down 3.2 per cent at Rmb31.93 a share.
Get alerts on LeEco when a new story is published