Economic review

Leshi says debts worth $900 mln due in 2018

2018-02-04 14:03:00 (Beijing Time)         Xinhua

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Leshi Internet Information and Technology, the listed arm of technology company LeEco, expects 5.62 billion yuan (893.69 million US dollars) of debts to mature this year, further exacerbating the company's cash woes and straining financials.

The debts were only a part of the company's total unpaid liabilities from financing and loans worth 9.29 billion yuan (1.47 US dollars) as of the end of last year, according to a statement by Leshi.

"If the company's business volume fails to rebound to the previous level, the cash flow will tighten further, which will put us under pressure to repay the debts," Leshi said, warning investors of risks.

The statement came after the company's shares traded in Shenzhen dropped by the 10-percent daily limit for eight straight days. Before the slump, it had suspended trading since April last year due to capital restructuring.

But the plan was dropped due to the financial woes of LeEco, which was in deep water as aggressive expansion into electric cars and other markets resulted in a rapid build-up of debts.

Leshi expects about 11.6 billion yuan (1.84 billion US dollars) in net losses for last year.