June 28, 2017 / 9:18 AM / 3 months ago

LeEco chairman says cash crunch 'far worse than expected'

HONG KONG, June 28 (Reuters) - Chinese tech conglomerate LeEco’s cash problems are “far worse than expected” despite having raised 9.7 billion yuan in recent months, the group’s chairman, Jia Yueting, said on Wednesday.

Jia, speaking at the annual shareholder meeting of the group’s main listed unit Leshi Internet Information & Technology Corp in Beijing, said the group would undergo further consolidation in coming quarters and possibly sell some assets and equity in order to fight a cash problem “worse than last year‘s”.

“Since October, we took some measures and made some mistakes, but LeEco’s non-listed units’ finances got tighter. This is what we discovered over two-to-three months,” Jia said, according to a company transcript of the meeting.

“We had thought some 9 billion yuan ($1.32 billion) for the non-listed units would have been able to solve all the problems, the result obviously did not meet our expectations.” ($1 = 6.7987 Chinese yuan renminbi) (Reporting by Sijia Jiang, Writing by Sam Holmes; Editing by Himani Sarkar)

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