Jakarta, CNBC Indonesia – A startup with a big name in China, LeEco was beset with many problems. The company, known as the Netflix of China, had to face problems in arrears in paying office rent and eventually shutting down operations.
LeEco is known to have a brilliant performance on the Shenzhen stock exchange. The company’s stock goes to trading boards as does Nasdaq stock group ChiNext.
In 2015, LeEco raised about 850 million yuan from Series A funding. The funds were for the division streaming sports and 500 million shares sold.
Service company streaming online is also known to expand its business into the hardware ecosystem. This includes smart TVs, smartphones, bicycles and cars.
In 2018, LeEco was acquired by a Chinese property conglomerate, Sunac. This also caused founder Jia Yueting to leave the company.
This positive trend was also achieved by LeEco’s parent company, LeShi Internet. The company’s reported revenue reached 13 billion yuan in the same year, with a profit of 573 million yuan.
But unfortunately, problems with the company’s complex structure made all that good fortune go away. For example, LeEco’s expansion got a lot of problems.
The founder of LeEco, Jia Yueting, was hit by debts reaching RMB 16.8 billion (Rp 36 trillion). LeEco’s subsidiaries are also reported to have lost millions of dollars in debt, including for LeSports.
Launch Mingtiandi, LeSport was in arrears on office rent for months and eventually shut down the service. The company rents at The Octagon K Wah International Tsuen Wan on the 33rd and 35th floors, while Le Corporation is on the 36th floor.
Hong Kong media reported that in October 2018, a pair of LeEco subsidiaries failed to pay monthly rents totaling HK$1.04 million since May of the same year. This resulted in the company going bankrupt with outstanding liabilities of HK$10.4 million.
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