Embattled Leshi, ‘China’s Netflix’, says it may have lost US$1.8 billion in 2017

January 30, 2018
Industry News
Content Provided By:

Jane Li

The video streaming company says declining revenues from subscriptions and terminals are behind the loss, while other group companies still owe it some US$1.2 billion

Leshi Internet Information and Technology, or Le.com, the Shenzhen-listed arm of embattled Chinese conglomerate LeEco, said it may have lost 11.6 billion yuan (US$1.83 billion) in 2017 as subscription and advertising revenues fell.

The video streaming company, once dubbed “China’s Netflix”, made a profit of 554.7 million yuan a year earlier, but has struggled along with its parent company LeEco after an over-aggressive expansion plan left the group cash-strapped. Various other entities in the group controlled by LeEco’s founder, Jia Yueting, owe Leshi some 7.531 billion yuan.

Shares of Leshi had been suspended from trading since April last year until January 24, before tumbling 10 per cent in the first session after the lifting of the suspension and falling another 10 per cent to 9.05 yuan on Tuesday.

The huge projected loss was mainly due to declining revenues from user subscriptions, sold terminals, as well as sold advertisements for the period, Leshi said in a filing to the Shenzhen Stock Exchange late on Tuesday. Meanwhile, the company’s increasing daily operational and financing costs also had deepened the financial woes, it said. Continue Reading


The South China Morning Post is a leading news media company that has reported on China and Asia for more than a century with global impact. Founded in 1903, SCMP’s headquarters are in Hong Kong, where it is the city’s newspaper of record. Our teams span Asia and the United States, working together to connect with news consumers around the world. We are committed to informing and inspiring through journalism of the highest standards. 

Against the backdrop of shifting discovery and consumption behaviour, SCMP reaches users across distributed media platforms such as SCMP.com, smartphone and tablet apps, social media and messaging platforms, as well as our flagship newspaper. ​In addition to the South China Morning Post broadsheet, we also publish the Sunday Morning PostPost MagazineSTYLE and This Week In Asia​​SCMP.com, attracts millions of readers and generates tens of millions of page views per month, providing a perfect channel for our advertisers to reach a worldwide audience.

For further information, please contact us