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China's Leshi Internet Information to swing to red in H1
[SINGAPORE] China's Leshi Internet Information expects to swing to a net loss in the first half on falling advertising and subscription revenues as its branding suffered due to its parent LeEco's financial woes, it said on Friday.
Leshi Internet Information & Technology Corp expects to log a net loss of between 636.7 million yuan (S$129.224 million) and 641.7 million yuan for the January-June period, compared to a net profit of 284.4 million yuan a year earlier, it said.
"The company's revenues in advertising, terminal sales and subscriptions fell sharply due to tight liquidity issues of the LeEco companies and the overall impact on branding," Leshi said in a filing to the Shenzhen stock exchange.
Leshi's beleaguered parent LeEco, whose empire spans from online entertainment to electric vehicles, has been in turmoil over the past few weeks.
Earlier in July, LeEco's founder Jia Yueting resigned as Leshi's chairman, months after he stepped down as the listed company's CEO to focus on the electric car business.
In July, a Shanghai court granted China Merchant Bank Co Ltd's request to freeze some of LeEco's assets because its subsidiary, Leview Mobile HK Ltd, had been late in making interest payments on a loan.