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LeEco in deeper trouble with Jia absent from shareholder meeting

JIA Yueting, founder of the debt-laden LeEco, didn't show up in the shareholder meeting of its listed subsidiary held today in Beijing.

Leshi Internet Information & Technology Corp posted to lose about 640 million yuan (US$92.8 million) in the first half, compared with a profit of 280 million a year ago, the Shenzhen-listed firm said during the weekend.

The shareholder meeting was held for only 15 minutes this afternoon, without any interactive communications with Leshi's shareholders on site. Leshi has been halted trading for a while with unsolved debts and other problems.

Jia resigned as chief executive of Leshi in May to focus on the electric car business. But he still remained controlling shareholder of Leshi, with business covering online video, film production and smart TV.

Leshi's executives asked for suppliers and investors "more time of repaying debts and rebounding business", which require capital and patience.

Jia’s resignation was the latest development of recent turmoil, with asset managers seeking to pull investment after a Shanghai court granted China Merchant Bank Co's request to freeze US$182 million in assets due to late interest payments.

Leshi's share price is expected to face slump of at least 30 percent when it opens for trading, analysts said.

Jia is now in the United States for finance of LeEco's electric car business, who promised to return to China "soon".

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