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Year-ender: Most talked-about topics on the Chinese internet

By Liu Zheng | chinadaily.com.cn | Updated: 2016-12-21 07:07

Year-ender: Most talked-about topics on the Chinese internet

Jia Yueting, co-founder and head of Le Holdings Co Ltd, also known as LeEco and, formerly, as LeTV, gestures as he unveils an all-electric battery "concept" car called LeSEE during a ceremony in Beijing. [Photo/Agencies]

A fund raiser struggles for being not insolvent but a game-changer

Chinese technology company LeEco founder Jia Yueting recently released an internal letter to his employees, indirectly admitting some of the rumors about supply chain and capital issues that caused the company's shares to plummet.

Jia talked for the first time about what he thought about the overly rapid growth of the company in the letter.

"There is a problem with LeEco's growth pace and organizational capacities," Jia said, adding that the company's global expansion had gone too far despite limited capital and resources.

Jia revealed that the company spent heavily (about 10 billion yuan) on the LeSEE all-electric concept car in its early stages. The company unveiled the vehicle, a rival to Tesla's Model S, in April.

On Nov 2, shares of Leshi Internet Information and Technology, which went public in 2010, fell nearly 7.5 percent on rumors that LeEco defaulted on payment for suppliers.

Jia said the company will address the capital issues in three to four months.

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.

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