Business, Internet

China's LeEco Reported Losses Of Over CNY600 Million In Q1 2017

Chinese Internet company LeEco recently published its financial report for the first half of 2017 and revealed over CNY600 million losses during the reporting period.

LeEco's operating revenue in the first half of 2017 was CNY5.579 billion, which was a decrease of 44.56% compared with the same period of last year. Meanwhile, the company made losses of CNY637 million, representing a year-on-year decrease of 323.91%. LeEco gained profit of CNY284 million in the same period of 2016.

Commenting on the operating revenue decline, LeEco said that its advertising business, terminal business, and paid business all saw decreases during the reporting period. Moreover, the company's copyright distribution was basically stopped in the second quarter of 2017, which led to the large decline of copyright distribution revenue.

Letv Zhixin, one of the company's subsidiaries, made losses of CNY282 million during the first half of 2017; while LeEco's cloud subsidiary made losses of about CNY80.3 million.

LeEco said that by targeting demands of different consumer groups, the company will further enrich its product portfolio. It will promote grid agent sales while developing third-party online sales channels for its electronics services.

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