Leshi posts net loss of $1.8b for 2017

Leshi Internet Information & Technology Corp, the listed arm of debt-laden internet company LeEco, reported a net loss of 11.6 billion yuan ($1.84 billion) last year, a drop of 2,192 percent compared with same period of previous year.

Its revenue reached 7.46 billion yuan in 2017, down 66.06 percent year-on-year, with earnings from advertisement, terminal devices and paid membership fees witnessing a sharp decline, the Shenzhen-listed firm said in a statement on Tuesday night.

Leshi attributed its operation loss to the financial strain of related parties, liquidity issues and rising financing costs.

Leshi's actual controllers may change. LeEco founder Jia Yueting holds 1.024 billion shares of the company, accounting for 25.67 percent of its total shares, of which 1.0195 billion shares (99.5 percent) have been pledged to financial institutions.

Leshi said Jia's equity has the risk of being dealt with relevant institutions, which may lead to the change of the actual controller of the company.