LeEco optimistic about stock downturn

All-electric concept car LeSEE is unveiled during a ceremony in Beijing, April 20, 2016. [Photo/Xinhua]

Le Holdings co-founder Jia Yueting made the comments at a business forum, responding to concerns raised after the company's trading was halted last week.

"In the past November, we've been tagged as a 'pyramid investment scheme' maker and going bankrupt in reports on the internet," said Jia, criticizing news headlines that went viral.

"It is enemies, rather than friends who will lead you to the podium," Jia added.

Jia Yueting, co-founder and head of Le Holdings Co Ltd, also known as LeEco and formerly as LeTV, uses a computer on a staff's seat as he poses for a photo after an interview at LeEco headquarters in Beijing, picture taken April 22, 2016.[Photo/Agencies]

Jia said that as long as the company continued to create valuable products, the short-term shares cold spell would turn around.

He also said the company's television manufacturing arm was pushing ahead with finalizing fundraising plans next month.

In a memo to employees last month, Jia conceded that LeEco had expanded too aggressively into smart phones, electric cars and other ventures, and was struggling to raise the cash it needed.

An online picture, showing people queuing up in a room later identified as the human resources office of LeEco, raised suspicions of a massive layoff.

Jia said the photo actually showed employees waiting to apply for the housing provision fund.

However, Jia also confirmed that the sports unit of LeEco will cut just under 10 percent of its staff and restructure its business, aiming to limit spiraling debt and corporate over-extension.

In relation to LeEco's most-queried business, concept vehicle manufacturing, Jia said the first mass-produced car, jointly invented by LeEco and United States auto startup Faraday Future, will be launched on January 3, next year.

According to Jia, the latest updates at LeEco's auto industrial park will also be unveiled during the event.

He said these will demonstrate how an internet-driven company has been able to grasp core technologies fueling an all electric vehicle, including charging, battery management, electronic controlling, as well as driving systems.