USEUROPEAFRICAASIA 中文雙語Fran?ais
    Business
    Home / Business / Technology

    LeEco in damage-control mode

    By Ma Si | China Daily | Updated: 2016-12-13 07:09

    LeEco in damage-control mode

    Jia Yueting, co-founder and head of Le Holdings Co Ltd, also known as LeEco and, formerly, as LeTV, gestures as he unveils an all-electric battery "concept" car called LeSEE during a ceremony in Beijing. [Photo/Agencies]

    Jia reassures that cash flow crunch will be sorted out; swears by e-car investments

    Tech-to-auto major LeEco said it would resolve its cash flow crunch within three to fourth months.

    "We have tackled 60 to 70 percent of our capital problems. The business will return to normal in three to four months," Jia Yueting, CEO of LeEco, said in an interview with Chinese magazine China Entrepreneur on Sunday.

    In response, shares in Chinese smartphone maker Coolpad Group Ltd, in which LeEco holds a more than 28 percent stake, jumped 1.39 percent on Monday to close at HK$0.73 ($9 cents).

    LeEco also said it would unveil in January its first electric car model that will be mass-produced.

    Founded in 2004, LeEco started as a video-streaming service provider, akin to Netflix Inc of the United States.

    It evolved rapidly into a diversified group with a presence in smartphones, TVs, cloud computing, sports and electric cars.

    But after launching operations in the US in October, the Beijing-based group found itself short of cash.

    That was because "its expansion efforts have gone too far", Jia said in a public letter last month. LeEco has been facing mounting doubts about its electric car project which has already cost the company over 10 billion yuan ($1.45 billion).

    "We won't change our ambition in electric cars. It is the second most important business unit in LeEco, only after our listed arm," Jia said in the interview.

    According to him, the car LeEco will unveil in January can run faster than Ferrari models. LeEco plans to mass-produce the car in as early as 2018. But, it did not disclose how many cars it would produce at the initial stage.

    In August, LeEco said it would invest 20 billion yuan to build an auto park in Zhejiang province, as part of the group's broad plan to mass-produce electric cars.

    According to the local government website, LeEco has recently bought a 900,000-square-meter land in Deqing county, Zhejiang province, for 279 million yuan, to set up the production base for its electric automobiles.

    Lu Zhenwang, CEO of the Shanghai-based Wanqing Consultancy, said electric cars constitute an investment-intensive sector. Without persistent capital support, it can't grow into a cash cow.

    "It remains to be seen how LeEco can live up to its promise. After all, dozens of billions of yuan are needed to build a factory. And I don't think LeEco has enough cash in hand now," Lu said.

    As a greenhorn in the car industry, LeEco will likely find the task of dealing with the complicated manufacturing process and safety issues highly challenging, he said.

    In fact, the US-based electric car startup Faraday Future, which is backed by LeEco, is already having trouble in its $1 billion factory plan in Nevada.

    In a recent interview with China Daily, Nevada State Treasurer Dan Schwartz expressed concern.

    "The projects Jia invested in, including in China, seem very difficult for him personally to realize. If you look at Leshi (LeEco's listed arm), it has roughly $6 billion in revenue, but it's netting about $50 million in profit. That profit margin is less than 1 percent ... Grocery stores make 2 percent to 3 percent," Schwartz said.

    Trading in shares of Leshi Internet Information and Technology Corp remained suspended on the Shenzhen Stock Exchange on Monday, after the company said last Wednesday it was investigating why its stock price plummeted more than 7 percent the day before.

    Fan Feifei contributed to this story.

    Most Viewed in 24 Hours
    Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
    License for publishing multimedia online 0108263

    Registration Number: 130349
    FOLLOW US
    免费一区二区无码视频在线播放| 欧美无乱码久久久免费午夜一区二区三区中文字幕 | 中文字幕无码一区二区免费| 中文字幕无码人妻AAA片| 亚洲精品无码午夜福利中文字幕| 精品无码一区二区三区爱欲九九| 亚洲中文字幕无码一去台湾| 色欲狠狠躁天天躁无码中文字幕| 精品无码三级在线观看视频| 亚洲Av无码精品色午夜| 中文字幕无码无码专区| 最近中文字幕电影大全免费版| 亚洲人成国产精品无码| 成人无码免费一区二区三区| 久久亚洲精品无码AV红樱桃 | 最近高清中文在线字幕在线观看| 久久人妻无码中文字幕| 亚洲av无码成人精品区在线播放| 久久精品aⅴ无码中文字字幕重口 久久精品国产亚洲AV无码娇色 | 亚洲AV无码久久| 亚洲国产成人精品无码区在线观看| 中文字幕久久精品| 国产资源网中文最新版| 久久亚洲精品中文字幕三区| 无码AV中文一区二区三区| 亚洲av中文无码乱人伦在线播放 | 亚洲中文字幕久久精品无码APP| 久久久久无码精品国产app| av无码一区二区三区| 丰满熟妇乱又伦在线无码视频| 无码人妻黑人中文字幕| 午夜亚洲AV日韩AV无码大全| 无码人妻精品一区二区三| 人妻中文字幕无码专区| 久久久久亚洲AV无码专区体验| 久久亚洲精品无码AV红樱桃| 国产成人无码一区二区三区| 国产亚洲精品a在线无码| 成人无码免费一区二区三区| 亚洲男人在线无码视频| 久久中文骚妇内射|