LeEco says 2016 sales will more than double
Chinese internet firm LeEco said on Wednesday its 2016 revenue will more than double to exceed 50 billion yuan ($7.38 billion), as the firm works hard to ease investors’ concerns that its over-expansion efforts will affect the cash flow of its listed arm and drag down its long-term growth.
Jia Yueting, CEO and founder of LeEco, said the Beijing-based firm’s profit will also rise significantly next year, driven by the rapid growth of its video-streaming and TV business.
Hemadethecommentsatan investor conference in Beijing, after shares in its listed arm Leshi internet Information and Technology Corp declined in the past few days amid concerns over its financial health.
“We will address the capital issues in three to four months,” Jia said. The Chinese billionaire admitted on Sunday that LeEco’s global expansion has gone too far, putting big pressure on its limited capital and organizational capacities.