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

Chinese video-streaming strict Leshi Internet Information & Technology said it expects a net loss of 11.6 billion yuan ($1.83 billion) for 2017, citing a dough crunch at embattled technology conglomerate LeEco that hurt its gross incomes.

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

It was once the ranking listed unit of LeEco which was founded by Jia Yueting. Last year, riches developer Sunac China became Leshi’s second-largest shareholder and Jia later on resigned as chairman and CEO from the company but remains its largest shareholder.

Leshi is vexing to recover debt owed by Jia. It said last week it is seeking disinterest stakes in the car businesses of Jia for debt owed by him and his companies amounting to as much as 7.5 billion yuan ($1.17 billion).

Leshi flagged the count oned loss for 2017 in a statement to the Shenzhen stock exchange on Tuesday round.

The announcement sent Leshi’s shares plunging by the daily limit of 10 percent on Wednesday, the sixth consecutive day they eat tumbled the maximum allowed since resuming trading a week ago be a fan a 9-month suspension.

Correction: This story has been updated to muse about that Leshi flagged its expected loss in a statement to the Shenzhen merchandise exchange.

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