Jia Yueting, chief executive officer of LeEco Global Group, poses for a picture at the company's headquarters in San Jose, California. (Photo : Getty Images)
Despite investors' concerns that over-expansion may affect its finances and slow its long-term growth, Chinese Internet firm LeEco is expecting its revenue this year to more than double and exceed 50 billion yuan ($7.38 billion), China Daily reported.
The report cited Jia Yueting, CEO and founder of LeEco, as saying that the rapid growth of the firm's video-streaming and TV business will also drive profit to rise significantly next year.
Jia made the remarks at an investor conference in Beijing on Wednesday, Nov. 9, following the decline in shares of its arm, Leshi Internet Information and Technology Corp, causing concerns over its financial condition.
"We will address the capital issues in three to four months," Jia told investors.
On Sunday, Nov. 6, Jia admitted that the firm's global expansion and rapid growth has put pressure on its limited capital and its organizational capacities.
Founded in 2004, LeEco begun as a video-streaming service provider similar to Netflix Inc. It rapidly grew its presence in other products such as smartphones, TVs, cloud computing, sports and electric cars.
Last week, Leshi's shares dropped 2.23 percent, while its market value has fallen by 10 billion yuan in the past six trading days.
Guo Xiangjun, who has invested half of his income into Leshi, was confident that the firm would survive its current troubles and continue with its long-term growth.
"I don't worry about its profitability. LeEco's business spans different sectors which can support each other's development. Jia has also hired the best global talents to run new business," Guo said after attending the investor conference.
LeEco assured investors on Wednesday, Nov. 9, that despite the financial pressure, it will not put the investors' money into LeSEE electric car project, which is a separate entity from the company's listed arm.
Early this month, Jia told employees in a letter that the company's rapid growth has resulted to stagnation and management problems at LeEco. He announced that he would invest $10 million into the company and cut his salary to 15 cents to keep LeEco stable as it expands into the U.S. as well as to pursue its goal to develop a self-driving car.
