More LeEco Debt Emerges; TV Production Firm Claims Conglomerate Owes USD54 Million in Licensing Fees

TANG SHIHUA

(Yicai Global) July 28 — A subsidiary of Chinese conglomerate Leshi Holding Beijing Co., known by the cash-strapped LeEco brand, still owes CNY368 million (USD54.5 million) in copyright fees to Zhejiang Huace Film and TV Co. [SHE:300133], the creditor said in its first-half financial report.

The production firm said Tibet Leshi Internet and Information Technology, a subsidiary of LeEco’s listed arm Leshi Internet and Information Technology Corp. Beijing [SHE:300104], owes CNY132 million in copyright fees for unpublished programs and films and CNY236 million for those already released.

The two firms and related third parties have agreed on an initial solution through negotiation, with Tibet Leshi expected to pay fees of up to CNY172 million.

Huace, based in the eastern city of Hangzhou, reported CNY1.75 billion (USD259 million) of operating income in the first half, an annual increase of 13.1 percent, while net profit attributable to shareholders grew 1.21 percent to CNY275 million.

Leshi Internet is the exclusive online broadcaster of General and I, a Huace-produced web drama. The company also broadcasts other Huace web series including Eternal Love, Full Love, My Ruby My Blood and Agent Princess.