Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Jia Yueting’s Leshi, ‘China’s Netflix’, delists from Shenzhen exchange with a final market cap down 99.6 per cent from its peak

The company’s valuation sank to 718 million yuan (US$102.7 million) on its final day of trading, from an all-time high of 170 billion yuan in 2015. Firms controlled by founder Jia Yueting still owe Leshi some 7.53 billion yuan

Leshi Internet Information and Technology, once dubbed “China's Netflix”, ended its nearly 10-year run as a listed entity on Monday, with its market value sinking 99.6 per cent from its peak five years ago.

The video-streaming service provider marked its exit unchanged at 0.18 yuan, giving it a valuation of 718 million yuan (US$102.7 million), a far cry from 170 billion yuan in 2015. Some 121 million yuan worth of shares changed hands.

“Once the company’s stock is delisted, it cannot re-list on the bourse,” Leshi said in a statement late on Friday. The company was founded by embattled Chinese entrepreneur Jia Yueting, who last year filed for Chapter 11 bankruptcy protection in the US.

It entered delisting proceedings on June 5, after reporting huge losses for a third consecutive year in 2019 and crossing the threshold for delisting. It debuted on ChiNext, a technology board for Chinese start-ups on the Shenzhen Stock Exchange, in 2010.

Leshi, once seen as a potential Chinese technology titan, is part of embattled Chinese conglomerate LeEco founded and headed by Jia. Various companies controlled by Jia owed Leshi some 7.53 billion yuan.

Once dubbed “China's Steve Jobs”, he had envisioned building an empire to rival US technology giants Apple, Tesla and Amazon.

Jia’s LeEco was also the parent of electric car start-up Faraday Future, which was keen to take on rival Tesla. But an aggressive expansion plan left the group cash-strapped.

Jia filed for Chapter 11 bankruptcy last October. He said at the time that he had repaid US$3 billion worth of debt while another US$2 billion was outstanding and that he controlled a 33 per cent stake in Faraday.

On July 2, California-based Faraday, which calls itself a “shared intelligent mobility company”, said Jia’s bankruptcy reorganisation procedures have been completed and a trust would be established to compensate Leshi shareholders.

“With the implementation of a partnership system at Faraday as well as that of my bankruptcy restructuring plan, I no longer own shares in the company,” Jia said in a post on Chinese social media platform Weibo.

Leshi’s shareholders can be compensated by the trust if certain conditions are met, he said without elaborating.

Leshi said in a stock exchange filing on July 2 that it had not received any compensation plan or arrangement from Jia or his debt restructuring team, adding it was impossible for Leshi to determine whether getting compensation from the trust was feasible.

Leshi’s net loss for last year widened to 11.3 billion yuan from 4.1 billion yuan in 2018. Revenue slumped 69 per cent to 490 million yuan. In 2017, it posted its first annual loss of 11.6 billion yuan.

Sunac China Holdings, one of the mainland’s largest developers, spent US$2.2 billion to buy an 8.6 per cent stake in Leshi through a share placement in 2017, becoming its second-largest shareholder.

Sunac also dispatched personnel to help reorganise the company, but failed in its bid to bail it out.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
The Personality Rights Challenge in India’s AI Era
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Study Finds No Safe Level of Alcohol for Dementia Risk
Trump Says Ukraine Can Fully Restore Borders with NATO Backing
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Germany Weighs Excluding France from Key European Fighter Jet Programme
Cyberattack Disrupts Check-in and Boarding Systems at Major European Airports
Björn Borg Breaks Silence: Memoir Reveals Addiction, Shame and Cancer Battle
When Extremism Hijacks Idealism: How the Baader-Meinhof Gang Emerged and Fell
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
Trump Orders $100,000 Fee on H-1B Visas and Launches ‘Gold Card’ Immigration Pathway
France’s Looming Budget Crisis and Political Fracture Raise Fears of Becoming Europe’s “Sick Man”
Three Russian MiG-31 Jets Breach Estonian Airspace in ‘Unprecedentedly Brazen’ NATO Incident
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
×