Leshi admits to major accounting problems

Leshi Internet Information& Technology Corp, the listed arm of troubled Chinese internet company LeEco, told a shareholder meeting on Friday that it is facing a major accounting problem due to the huge related party transactions.

The company, however, said it will continue to emphasize on its main business, reduce expenditure and seek help from shareholders. Though there has been no substantial improvement in the overall situation until now, it will continue to stay in close communication with the related parties, it said.

Leshi shares surged 8.85 percent to 5.29 yuan (83 cents) on Friday after it resumed trading in the Shenzhen Stock Exchange from January 24.