LeEco , the company that owns smartphones, smart TVs, electric cars and a sports media platform, has been in the market since mid-October. Unfortunately, it is facing serious financial problems despite its sales being satisfactory.
According to a statement by Jia Yueting, co-founder of the company, LeEco has attempted to make financial openings in a very short period of time, which has resulted in a problem in the company's growth rate. Specifically, the global expansion strategy was based on limited funds and resources, so now the company must pay attention to strengthening capital control.
Jia Yueting pledged to maintain a more restrained pace in expanding the company’s business activities in order to avoid a larger financial loss.
We should note that LeEco added over 5,000 new employees during the year, a rare move for a newly established company.
LeEco's financial woes have been a cause for concern for investors. Leshi Internet Information & Technology Corp's stock fell 7.5% due to a failure to pay its investors. The stock fell another 4.7% after Jia Yueting's recent statements, while Coolpad's stock fell 17% over the past three years due to its partnership with LeEco.
The Chinese company, however, seems undeterred, as it seeks to expand its product range beyond its domestic launch and expand its operations abroad. Last month, LeEco unveiled a series of new products including the high-end Le Pro3 smartphone, a seven-foot smart TV, the LeSee electric car, and a VR headset in San Francisco.
