LeTV reports H1 loss, cites media coverage of weak fi nancial position

LeTV, a Chinese technology company, said fi rst- half revenue fell 44.5 percent to 5.58 billion yuan ($ 842.7 million), according to its interim statement released on Monday.

It also reported a net loss of 636.8 million yuan, compared with a profi t of 284 million yuan a year earlier.

LeTV is focused on smart device sales, advertising, membership and the distribution business and its revenue is closely connected to the Internet market and user stickiness. Negative media coverage related to fi - nancial turmoil caused by intragroup transactions damaged the brand’s reputation, which had a negative eff ect on membership, according to LeTV. Revenue from advertising and device sales also declined, LeTV said.

Besides, LeTV didn’t conduct copyright distribution business in the second quarter, which also contributed to its revenue decrease, it said.

In the fi rst half of this year, its assets lost about 240 million yuan in value, according to LeTV.

As for the issue of intra- group transactions, which has raised concern, the report showed that the company’s accounts receivable from related parties stood at 5.24 billion yuan in the fi rst half of this year, or 51.85 percent of the total.

Some intra- group transactions are still being conducted, it said.

The management team stressed the concept of a “new LeTV” in the statement, and the company’s latest strategy is to integrate resources and focus on its advantage in the big- screen ecosystem, the team said.

LeTV has seen management changes since August 15.