LeEco, founded in 2004, started as a video-streaming service provider akin to Netflix Inc, but it rapidly grew into a firm with a presence in smartphones, TVs, cloud computing, sports and electric cars.
On Wednesday, Leshi’s shares dropped 2.23 percent. Its market value has declined by about 10 billion yuan in the past six trading days.
Guo Xiangjun, who has invested about half of his disposable income into Leshi, said he is optimistic about the firm’s long-term growth, despite its current troubles.
“I don’t worry about its profitability. LeEco’s business spans different sectors which can support each other’s development. Jia has also hired the best global talents to run new business,” Guo said after attending the investor conference.
LeEco also promised on Wednesday that despite the financial pressure, it won’t channel investors’ money into its LeSEE electric car project, which is financially independent from the listed arm.
Xue Jin and Fang Wenyu contributed to this story.