The Lion Electric pany(US:LEV) Sou Hu Cai Jing·2025-12-05 06:21Core Viewpoint - LeEco, once a thriving company, is now deeply in debt with a negative net asset of 21.5 billion yuan and liabilities reaching 23.8 billion yuan, yet it has announced stock investment plans twice this year, including a recent plan to invest 180 million yuan in the capital market [2][3][26] Financial Situation - LeEco's financial condition shows a significant imbalance, with a reported 4.59 billion yuan in consolidated cash at the end of Q3, but only 36,600 yuan in cash at the parent company level, indicating poor financial management [8][9] - The company plans to invest 180 million yuan, which is significantly higher than the 50 million yuan planned in the first half of the year [7] Investment Strategy - The investment strategy includes purchasing stocks in the secondary market, with at least 50% allocated to bank stocks and 80% to components of the CSI 300 index [6][3] - This approach raises concerns about the potential risks to ordinary creditors, as the company appears to be gambling with funds rather than focusing on debt repayment [8][11] Business Operations - LeEco's current operations are supported by its intellectual property from classic TV dramas and light asset businesses, generating an estimated 287 million yuan in internet service revenue and nearly 30 million yuan from film distribution in 2024 [13] - The company has attempted various cross-industry ventures, including entering the fast-food industry and exploring new growth points, but these efforts have not yielded significant results [13][15] Debt Management - The company has a significant debt burden, including nearly 4.8 billion yuan owed to related parties controlled by its founder, Jia Yueting, and must also share approximately 2.065 billion yuan in debt and over 2 billion yuan in repurchase obligations [22] - Effective risk isolation mechanisms are necessary to separate debt from business operations, similar to strategies employed by other companies [24] Conclusion - LeEco's operations are centered around survival, but this should not come at the expense of ordinary citizens' rights. The company must prioritize debt repayment and creditor interests over high-risk investments [26][28] - The capital market is unforgiving to those who gamble with public funds, and sustainable operations are essential for regaining trust and stability [28]