LeEco said on Tuesday that it will temporarily suspend horizontal expansion in the Asia-Pacific market and focus more on improving cash flow.
In an announcement LeEco sent to the Global Times on Tuesday, the Chinese technology and entertainment company said it will transition to the second stage of its ecosystem development strategy in the global expansion, which will shift the priorities to a focus on rapid cash flow growth and increasing both the quantity and quality of its global user base.
As part of its new focus on cash flow, LeEco announced the appointment of Anthony Gao Jun, currently the CEO of LeEco Hong Kong, as president of LeEco APAC.
The company noted that it "must reflect and adjust our pace and regional strategic planning" and "reinforce prudent financial management" to ensure the long-term sustainable development of its Internet ecosystem business.
Over the past two years, LeEco has entered a number of global markets including North America, India, Russia and the Asia-Pacific region.
Also on Tuesday, LeEco signed a $300 million financing agreement with a consortium of Chinese companies, which will flow into its LeSEE electric car business and LeEco Global, the company said in a separate announcement sent to the Global Times. The consortium plans to invest a total of $600 million into LeEco, with the $300 million in question as the first stage, it said.
LeEco has been facing skepticism over its ecosystem development, which has seven sub-ecosystems: Internet and cloud computing, content, big screens, mobile Internet, automobiles, sports and Internet finance.
Amid growing concern, CEO Jia Yueting reflected on what he described as overly rapid growth in early November, saying in an internal letter to his employees that the company's globalization had gone too far despite limited capital and sources, resulting in "an apparent lack of momentum" in various business.
