China’s Leshi sees wider H1 net losses as business falters

HONG KONG: Embattled Chinese tech firm Leshi Internet and Technology said it expected a bigger net loss in the first six months of the year and saw the possibility of continued losses in the second half if its business operations did not improve.

It estimated a wider net loss of 1.10-1.11 billion yuan (US$165.12-US$166.02 million) during the January to June period versus a loss of 636.8 million yuan a year ago, it said in a filing to the Shenzhen stock exchange late on Friday.

The logo of of Leshi Internet Information & Technology Corp is seen on its building in Beijing

A video-streaming company that also makes internet-connected television sets, Leshi said a continued loss in the second half of the year was a possible scenario as its main business had faltered, the filing showed.

Listing status of its shares may be suspended by the Shenzhen stock exchange if its net asset value turned negative at end of this year, the filing added.

Leshi warned in May that its cash flow was "extremely tight" and could lose control of its smart TV subsidiary.

(US$1 = 6.6921 Chinese yuan renminbi)

(Reporting by Meg Shen; Editing by David Evans)

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