Tightening cash flows compound Leshi's debt woes
Leshi Internet Information and Technology, the listed arm of technology company LeEco, expects 5.62 billion yuan ($894 million) of debts to mature this year. The debts were only a part of the company's total unpaid liabilities from financing and loans worth 9.29 billion yuan as of the end of last year, according to a statement issued 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. The company also warned investors of the risks.
The statement came after the company's shares traded in the Shenzhen Stock Exchange dropped by the 10-percent daily limit on Monday for eight straight days. Before the slumps, it had suspended trading since April last year due to capital restructuring.